The Supreme Court of New York has granted a preliminary injunction that protects more than 150 licensed dispensaries from relocation or closure while the case proceeds against the state's Office of Cannabis Management (OCM).
Signed by Judge Keri Savona, the order requires the OCM to revert to its previously established method of calculating distances between dispensaries and schools, as outlined in its March 11, 2024 "Guidance for Adult-Use Retail Dispensaries." This injunction remains in effect through February 15, 2026, covering both license renewal applications expiring on or before that date and new applications submitted by existing licensees, provisional licensees, or applicants during this period.
"This preliminary injunction is a critical safeguard for more than 150 compliant, tax-paying dispensaries across New York," said Jorge Luis Vasquez Jr., attorney for the petitioners. "The OCM's directives would have forced businesses that followed every rule to suddenly uproot or close their doors, jeopardizing investments, leases, and community trust. By requiring the OCM to honor its own prior guidance, the Court has ensured stability while the broader issues are litigated. Licensed operators deserve regulatory clarity, and we will continue to pursue a resolution that protects equity licensees and delivers on the State's promise of a fair and sustainable cannabis market."
"The OCM's recent declaration placed retailers in untenable positions, jeopardizing their access to banking, investment, and lease agreements while pushing compliant businesses into noncompliance through no fault of their own," said Matthew Bernardo, President of Housing Works, Inc. "Disrupting operations at this scale not only harms law-abiding businesses but also drives consumers back to the illicit market, where untested products put public health at risk."
Petitioners in the case include Housing Works Cannabis Co, Conbud, The Cannabis Place, Rezidue, Summit Canna, Hush, High Fade, Elise Pelka LLC, Common Courtesy Dispensary LLC, Toastree LLC, Monarch NYC LLC, and Luxe Leaf Boutique LLC. All affected dispensaries by the proximity reinterpretation, they collectively filed suit against the OCM on August 15th, 2025. "This injunction presents a unique opportunity for Governor Hochul to lead the legislative solution and resolve this matter in an equitable manner that will save thousands of legal cannabis industry jobs throughout the state, while ensuring access for tested and regulated cannabis products for consumers," said Osbert Orduna CEO of The Cannabis Place dispensary.
