New York marijuana dispensaries have filed a lawsuit against the state after cannabis regulators acknowledged they mistakenly allowed some shops to open too close to schools, creating uncertainty over the businesses’ future.
The suit, filed Friday in state Supreme Court in Albany, asks a judge to confirm the legality of the dispensaries’ current locations and block any state enforcement actions against them.
The filing follows a recent disclosure from the state’s legal marijuana office to about 150 existing or planned cannabis stores that regulators had misinterpreted a state law requiring dispensaries to maintain a set distance from schools.
Since licensing began roughly three years ago, officials measured the required 500-foot (152-meter) distance from a school’s entrance to the dispensary’s entrance. Regulators now say the law requires measuring from the school’s property line.
State officials said about 60 dispensaries were licensed and opened under the incorrect method, along with approximately 40 licensed but unopened shops, and nearly 50 applicants awaiting final approval.
Dispensaries currently in operation were told they may continue serving customers and operate on expired licenses if they applied for renewal. A relocation fund offering up to $250,000 per applicant has been established.
The cannabis office has urged lawmakers to pass a permanent solution allowing the affected businesses to stay in place, though officials noted the outcome is uncertain. The Legislature is not scheduled to reconvene until next year.
A spokesperson for the cannabis office declined to comment on the case, which was brought by a dozen businesses.
The proximity issue is the latest setback for New York’s legal cannabis market, which has faced operational problems, legal disputes, and competition from unlicensed shops.
According to state figures, about 450 cannabis dispensaries are currently open in New York.
