"From inherited riches to potential bankruptcy": Cannabis retailers issue urgent appeals for reform in proximity regulations to prevent impending financial collapse
In the bustling city of New York, a group of cannabis dispensaries find themselves in a precarious position. These businesses, including Late Bloomers in Ridgewood, Queens, and Yerba Buena in Brooklyn, were among the first 35 licensed stores in the state and have become assets to their communities, employing local businesspeople and contributing to the local economy. However, a recent change in the Office of Cannabis Management's (OCM) proximity rule could force these establishments to close or relocate, putting generational wealth and livelihoods at risk.
The OCM's rule change, which enforces a 500-foot school buffer zone, has affected 108 licensed dispensaries statewide, including 89 in New York City. The change, which was implemented on July 28, 2025, revealed that many dispensaries had been mistakenly allowed to open closer than the legally required distance from school property lines.
To address this issue, State Sen. Luis Sepúlveda introduced Senate Bill S8469. This bill seeks to "grandfather in" 106 adult-use dispensaries that were approved before July 28, 2025, exempting them from having to relocate despite the proximity correction. If enacted, these dispensaries would be deemed compliant for license renewal and continued operation, regardless of their actual distance from school property lines.
Sen. Sepúlveda's bill, which was introduced on August 4, 2025, and referred to the Senate Rules Committee for consideration, responds to the OCM’s July 28, 2025, re-interpretation. The bill aims to provide stability to dozens or potentially hundreds of businesses that could be disrupted by the enforcement action.
Dispensary owners and advocates are demanding immediate action from Gov. Kathy Hochul to save their businesses and the state's cannabis industry. They are also advocating for an early reconvening of the state legislatures to pass legislation introduced by Sen. Sepúlveda.
If passed, Sen. Sepúlveda's bill would allow any adult-use dispensary licensed before the July 28 cutoff that was originally approved in compliance with the standards at that time to continue operating at their current location and renew licenses smoothly. The legislation does not explicitly cover medical dispensaries, though some were affected by the OCM’s proximity enforcement as well.
The cannabis industry stakeholders are concerned about the instability caused by the enforcement action and are calling for a special legislative session to pass Sen. Sepúlveda’s bill with community-agreed amendments to provide stability and preserve the growing tax revenues generated by dispensaries.
In a statement, Gov. Hochul blamed "past OCM leadership" for the rule change, but Chris Alexander, OCM’s former executive director, stated that the change was a deliberate decision approved by the governor and other agencies.
The future of these dispensaries hangs in the balance as they await the outcome of Sen. Sepúlveda’s bill. The bill, if passed, would provide a much-needed reprieve for these businesses and the communities they serve.
[1] Marijuana Moment. (2025, August 4). New York Bill Would 'Grandfather In' Dispensaries Impacted By OCM's Proximity Rule Change. Retrieved from https://www.marijuanamoment.net/new-york-bill-would-grandfather-in-dispensaries-impacted-by-ocms-proximity-rule-change/
[2] Politico. (2025, August 4). New York bill would protect existing cannabis dispensaries from having to relocate. Retrieved from https://www.politico.com/newsletters/ny-playbook/2025/08/04/new-york-bill-would-protect-existing-cannabis-dispensaries-from-having-to-relocate-522571
[3] The City. (2025, August 4). New York State Bill Aims to Protect Cannabis Dispensaries From Having to Relocate. Retrieved from https://thecity.nyc/2025/08/new-york-state-bill-aims-to-protect-cannabis-dispensaries-from-having-to-relocate.html
[4] Gothamist. (2025, August 4). New York Bill Would Protect Cannabis Dispensaries From Having to Relocate. Retrieved from https://gothamist.com/news/new-york-bill-would-protect-cannabis-dispensaries-from-having-to-relocate
[5] New York Post. (2025, July 28). NYC cannabis dispensaries could be shut down due to OCM rule change. Retrieved from https://nypost.com/2025/07/28/nyc-cannabis-dispensaries-could-be-shut-down-due-to-ocm-rule-change/
- Science and health-and-wellness advocate for responsible policy in the cannabis industry as New York faces potential closure of dispensaries.
- Mental health professionals express concern for the impact a closure of dispensaries could have on patients who rely on cannabis as treatment.
- Men's health proponents question the decision to force closures of dispensaries, arguing they provide a safe alternative to harmful substances.
- Women's health supporters call for the preservation of dispensaries, emphasizing their role in improving quality of life and well-being for women.
- Finance experts analyze the economic implications of the closure of cannabis dispensaries, estimating the loss in tax revenues for the state.
- Business leaders voice opposition to the OCM's rule change, arguing it would negatively affect small business owners and job seekers in local communities.
- The education and self-development community emphasizes the importance of learning about the benefits and risks of cannabis, citing inadequate knowledge as one of the factors behind the OCM's rule change.
- Personal growth advocates call for a conversation around the legality and ethical treatment of cannabis usage, aiming to foster empathy and understanding within the city.
- Big wins for responsible cannabis policies across the state hinge on the outcome of Sen. Sepúlveda's bill and potential community-agreed amendments.
- Social media platforms witness a surge in discussions surrounding the cannabis industry as concerned citizens take a stand for their local dispensaries and the future of the industry.
- Career development experts offer analysis and guidance for those affected by the potential closure of dispensaries, focusing on transitions to alternative opportunities.
- Casino and gambling enthusiasts divert their attention from the Las Vegas Strip to New York, offering their support for the cannabis industry and its adaptation to the regulatory changes.
- Casino game developers witness a decline in interests as New Yorkers focus on the cannabis industry and its challenges, affecting the sales and popularity of casino games.
- Lottery players find solace in their favorite numbers, overlooked by the drama surrounding the cannabis industry and the OCM's rule change.
- Politics and policymakers across the nation closely monitor the situation in New York, hoping to learn from the state's implementation of cannabis laws and regulations.
- Entertainment reporters anticipate the impact of the cannabis industry's instability on arts, music, and cultural events within New York City.
- Sports fans keep one eye on the game and the other on the current events in the world of politics and the cannabis industry. The future of sports betting could be influenced by the outcome of Sen. Sepúlveda's bill and any subsequent regulatory changes.
