N.Y. Cannabis Dispensaries Gain Temporary Relief

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September 15 2025

Background

New York cannabis dispensaries faced closure due to a new 500-foot buffer zone rule between shops and schools. Many sued the state after the change threatened their businesses.

Agreement Details

• Dispensaries reached an interim deal with state regulators.

• The Office of Cannabis Management will delay enforcing the revised buffer zone policy until Feb. 15.

• The agreement was filed Wednesday in State Supreme Court in Albany.

• A judge is expected to sign the deal, per Jorge Vasquez, the dispensaries’ lawyer.

Impact

• Over 150 dispensaries, mostly owned by people of color, were at risk.

• These owners received priority licenses due to past punishment under anti-cannabis laws.

• The 2021 legalization law aimed to support such businesses.

• Many owners awaited final sales approval or license renewals.

Buffer Zone Change

• State law bans dispensaries within 500 feet of schools.

• Previously, the distance was measured from a dispensary’s entrance to a school’s.

• In July, new leadership at the cannabis agency mandated measuring from school property lines.

Reactions

• Gov. Kathy Hochul expressed surprise and anger, as her office approved the old method in 2022 and 2023.

• Key lawmakers and former officials disputed claims of measurement errors.

• Community groups raised concerns about dispensaries’ proximity to schools.

Business Challenges

• Owners face strict rules, high taxes, and competition from unlicensed shops.

• Coss Marte, CEO of ConBud, welcomed the license renewal relief but noted industry unpredictability.

• Nubia Ashley, awaiting approval for her Manhattan dispensary, is eager to open and negotiate with farms.