Greater than 150 licensed hashish dispensaries throughout New York are protected against pressured relocation or closure following a preliminary injunction issued by the state’s Supreme Court docket in opposition to the Workplace of Hashish Administration (OCM).
The ruling, signed by Decide Savona on September 29, requires the OCM to revert to its earlier methodology for measuring the space between dispensaries and faculties, as outlined in its 11 March 2024 Steerage for Grownup-Use Retail Dispensaries.
The injunction, efficient via 15 February 2026, applies to each renewal and new licence purposes submitted throughout this era by present licensees and candidates.
“This preliminary injunction is a essential safeguard for greater than 150 compliant, tax-paying dispensaries throughout New York,” lawyer Jorge Luis Vasquez Jr., representing the petitioners, stated in a press launch.
“By requiring the OCM to honour its personal prior steering, the court docket has ensured stability whereas the broader points are litigated.”
The case, filed on 15 August by a coalition of licensed retailers together with Housing Works Hashish Co., Conbud, The Hashish Place and others, challenges the OCM’s reinterpretation of zoning guidelines regarding proximity to colleges and locations of worship. The court docket order, issued with out prejudice, could be renewed after six months whereas proceedings proceed.
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Origins of the Dispute
The authorized problem follows revelations in early August that the OCM had been approving dispensary websites utilizing an incorrect ‘door-to-door’ measurement, just like liquor retailer laws, moderately than the property-line normal required beneath New York’s hashish legislation.
As Enterprise of Hashish reported on the time, the miscalculation left 105 licensed dispensaries, 60 of which have been already working, and 47 pending candidates in technical violation of zoning guidelines.
Governor Kathy Hochul described the error as a ‘essential oversight’ by former OCM management and directed the state to assist affected companies via a brand new US$15 million Applicant Aid Programme, providing grants of as much as US$250,000 to assist eligible candidates cowl relocation or compliance prices. Nonetheless, the programme doesn’t lengthen to already licensed operators.
Business figures have sharply criticised the company’s dealing with of the difficulty. Matthew Bernardo, president of Housing Works Inc., stated the OCM’s directive positioned retailers “in untenable positions, jeopardising their entry to banking, funding and lease agreements whereas pushing compliant companies into noncompliance via no fault of their very own.”
Curaleaf chair Boris Jordan additionally accused regulators of ‘blatantly disregarding’ the Marijuana Regulation and Taxation Act’s zoning provisions, calling it a “sample of reckless selections” that continues to drive shoppers towards the illicit market.
Broader Implications
Practically 90% of the dispensaries affected by the OCM’s reinterpretation are owned by Conditional Grownup-Use Retail Dispensary (CAURD) licensees, people from communities disproportionately impacted by prior hashish enforcement. Advocates warn that regulatory instability threatens to undermine the state’s social fairness commitments.
“The injunction presents a novel alternative for Governor Hochul to guide a legislative answer that may save hundreds of authorized hashish jobs whereas guaranteeing entry to examined, regulated merchandise,” stated Osbert Orduna, CEO of The Hashish Place.
The petitioners say they continue to be dedicated to working with the state to achieve a good and everlasting decision. In the meantime, the injunction gives short-term aid to dozens of small enterprise house owners who had confronted the prospect of shuttering shops they constructed beneath state supervision.
The submit New York Court docket Blocks State From Forcing Dispensary Relocations appeared first on Enterprise of Hashish.
