NY OCM Issues Key Correction on 500 Foot Distance School Zone Requirement


The New York Office of Cannabis Management (OCM) has issued a significant correction to its previous guidance on how to measure the required 500-foot distance between retail cannabis dispensaries and schools. This change has immediate and potentially wide-ranging implications for both pending applicants and currently licensed dispensaries across New York State.

Prior Guidance
OCM had long advised applicants that the 500-foot proximity restriction should be measured in a straight line from the center of the nearest school entrance to the center of the dispensary’s main entrance—only considering entrances regularly used by patrons. In addition, this rule applied only when the dispensary and school were located on the same street or road.

Updated Measurement Standard
OCM recently stated that this method was incorrect and inconsistent with Cannabis Law § 72(6) which states that “No cannabis retail licensee shall locate a storefront within five hundred feet of a school grounds as such term is defined in the New York Education Law or within two hundred feet of a house of worship.” Section § 409(2) of the Education Law defines “school grounds” as “any building, structure and surrounding outdoor grounds, including entrances or exits contained within a public or private pre-school, nursery school, elementary or secondary school’s legally defined property boundaries as registered in a county clerk’s office.”

Reading the two sections together, OCM has adopted a revised standard that requires the licensee to measure a straight line from the dispensary entrance to the nearest point on the school property line —regardless of whether they are on the same road. This new and broader interpretation significantly expands the areas considered off-limits.

Current Impact
According to the OCM, the revised guidance will affect the following applicants/licensees (subject to change upon further analysis) :
• 44 pending applicants whose proposed locations may now be noncompliant.
• 108 licensed dispensaries.

Over 80% of the affected parties are in New York City, while the remainder are spread across the rest of the State.

OCM Support for Applicants and Licensees

The applicants that don’t comply with the distance requirements must find new, compliant locations to proceed with their applicants.

To assist affected applicants, OCM and Empire State Development have created a $15 million Applicant Relief Program to help cover:

  • Costs of finding a new location.
  • Capital improvements made to the original (now non-compliant) location

Applicants may receive provisional licenses while they secure new locations.


Support for Licensees

For those affected licensed dispensaries, many of which already operating, the Governor’s Office and OCM are pursuing legislation to allow these businesses to remain at their current locations.

However, as there is the risk this legislation may not pass and OCM cannot renew licenses at locations that do not comply with the new interpretation of Cannabis Law § 72 (6), licensees will need a new compliant location before the Cannabis Control Board can finalize license renewal.


Webinar: Rescheduling vs. Decriminalization – The Movement for Cannabis Legalization and Its Impact on Today’s Market

Duane Morris will hold its next Cannabis Webinar, Rescheduling vs. Decriminalization – The Movement for Cannabis Legalization and Its Impact on Today’s Market, on Thursday, May 8, 2025, from 12:30 p.m. to 1:30 p.m. Eastern.

REGISTER FOR THE WEBINAR

The panel discussion features journalist filmmaker Michele Mitchell, who will examine the history of the cannabis movement, its impact on the current state of the cannabis market, and whether rescheduling or decriminalization would have the most beneficial impact for cannabis as this nascent industry continues to grow.

Duane Morris Attorneys Named to Top 200 Cannabis Lawyers List

Duane Morris partners Paul P. Josephson, Michael D. Schwamm, Tracy Gallegos and Seth A. Goldberg have been named to Cannabis Law Report‘s Top 200 Cannabis Lawyers for 2022/23.

Cannabis Law Report compiled the list from the publication’s annual survey of clients and lawyers in the cannabis legal services sector “as well as our personal editorial decisions based on our reporting of the industry on a daily basis for the past six years.”

For more information, please visit the Top 200 Cannabis Lawyers website.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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