#United States #New York #Cannabis #Albany #Lawsuit

New York Cannabis Retailers Sue Office of Cannabis Management

On August 15, 2025, a coalition of licensed cannabis retailers in New York took a significant stand against the state’s Office of Cannabis Management (OCM) by filing a lawsuit in the New York Supreme Court in Albany. This legal action stems from a controversial reinterpretation of proximity policies that could compel over 150 dispensaries to either relocate or cease operations. The lawsuit, identified as INDEX NO. 908591-25, has been fueled by concerns that the OCM’s sudden and retroactive policy changes threaten the survival of small businesses in the state's regulated cannabis market.

The plaintiffs, including entities such as Housing Works Cannabis Co, argue that the OCM’s abrupt policy reversal compromises not only their livelihoods but also objectives aimed at social equity within the industry. This coalition encompasses a diverse array of cannabis operators who have collectively adhered to the regulations established nearly three years ago while building their businesses. Their complaint highlights the jeopardy these changes pose to their operational compliance and financial stability. In an official statement, the coalition criticized the OCM’s actions as detrimental, claiming it would encourage consumers to revert to the illicit market and undermine genuine efforts to create a legitimate and equitable cannabis landscape in New York.

In early July 2025, OCM announced a revised interpretation regarding the necessary distances that licensed dispensaries must maintain from schools. This reinterpretation has placed many affected cannabis retailers in an unsustainable position, leading to potential lease terminations and difficulties in renewing business licenses. With a backdrop of years spent in community evaluation to establish safe access to cannabis, the sudden pivot by OCM has raised alarms among business owners and community advocates alike.

Jeremy Rivera, president of the Cannabis Retail Alliance of New York, expressed strong opposition to the OCM’s decision. He stated, "We will not allow the foundation of this industry to be shaken by bureaucratic negligence." Rivera emphasized that the new proximity measures, based on prior approvals, were understood to be part of a stable regulatory framework that allowed these businesses to flourish. He has called attention to the impact these developments could have on individuals deeply embedded in local communities, referring to them as hardworking families and small entrepreneurs who have invested significantly into their enterprises.

Many of the dispensaries affected by this policy shift are owned by justice-involved individuals, predominantly from Black and Latino backgrounds. These business owners had previously been assured that their investments in the regulated cannabis market would provide pathways to significant economic opportunities, often described as a form of restitution for the long-standing repercussions of the War on Drugs. The failure of the OCM to recognize the systemic issues created by its reinterpretation is viewed by many as a betrayal of trust, especially among women in the industry, who already face significant challenges, including financing hurdles.

Osbert Orduna, the CEO of The Cannabis Place and a service-disabled veteran, vocally criticized the OCM’s recent move, stating that the agency's actions have placed them in a position where they risk generational debt. He noted that such changes create uncertainty for those who had responsibly followed governmental protocols and secured their business foundations.

The lawsuit cites multiple allegations against the OCM, including unlawful rulemaking, arbitrary agency actions, and violations of both state and federal due process rights. If the court rules in favor of the plaintiffs, they seek to revoke the OCM's latest proximity interpretation and affirm the compliance of their current operational locations.

A preliminary hearing for the case is scheduled for August 29, 2025. The stakes are incredibly high for these small operators, who not only face financial distress but are at risk of losing the progress they have made in breaking into the legal cannabis framework. Activists and supporters of the plaintiffs remain optimistic that the court will recognize the importance of protecting small businesses in maintaining a diversified and equitable cannabis marketplace.

As the New York state cannabis landscape continues to evolve, the outcome of this lawsuit will likely set a significant precedent for future regulations and the overall direction of the industry, reinforcing the necessity for fair and just treatment of all operators within this burgeoning market.