In August 2025, the New York Office of Cannabis Management (OCM) released Advisory 2025-001 after completing an internal review of agency practices. The review found that previous guidance on how dispensary locations were measured relative to schools was inconsistent with the legal requirements outlined in Cannabis Law § 72 (6). This correction affects 44 pending retail applications and 108 licensed dispensaries across New York State. Impacted applicants and licensees have been contacted directly by OCM by phone, email, and letter. The OCM is continuing its review and may identify additional applicants or licensees impacted by this correction.
The law states that a dispensary cannot be within 500 feet of a school property line or 200 feet of a house of worship.
- Cannabis Law § 72 (6):
“No cannabis retail licensee shall locate a storefront within five hundred feet of a school grounds … or within two hundred feet of a house of worship.” - Education Law § 409 (2):
Defines “school grounds” to include all property within the legal boundaries of a school, including outdoor space, entrances, and exits.
How Distance Will Now Be Measured
The OCM has determined that it will use a straight-line measurement from the main entrance of the dispensary to the nearest boundary line of the school grounds. The current interpretation imposes tighter regulatory standards than earlier guidance, where alternative approaches to measurement were utilized. This correction brings OCM practice into alignment with the statutory text. While the OCM provides a “LOCAL Map” tool to approximate proximity to schools, applicants and licensees must perform their own due diligence.
Support for Affected Applicants
If your proposed location is affected by this correction, you must obtain a new location unless the law is amended. If your application is affected but the location is the only deficiency, OCM may issue or extend provisional licenses while new sites are identified. The Applicant Relief Program is funded at $15 million and was created to provide up to $250,000 per applicant for relocation expenses or capital improvements at the original site. This fund only applies to impacted applicants, not licensees.
Affected Licensees
Currently, OCM and the Governor’s Office plan to propose a 2026 legislative amendment to allow current noncompliant dispensaries to remain in place. However, if legislation does not pass, licensees will need to relocate before their license renewal, or their renewal will be denied. At this time, affected licensees may remain open and operational until renewal. If your license is issued but your dispensary has not opened yet, you may continue to prepare for opening. However, in absence of a statutory amendment, renewal of your license at the same location will not be possible.
This situation continues to evolve. If you are affected by this new ruling, reach out to Tracy Jong at Tjong@EvansFox.com to discuss your situation and available options.
Tracy Jong is a Senior Attorney at Evans Fox LLP with 30 years of experience focusing her practice in business law, intellectual property and licensing for alcohol and cannabis. Tracy Jong is a member of the New York Bar and is a registered attorney at the United States Patent and Trademark Office. She can be reached at Tjong@EvansFox.com.
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The content has been prepared for informational purposes only; it should not be construed as legal advice, does not create or constitute an attorney-client relationship, and readers should not act upon it without seeking professional counsel.