New York dispensary owners rally at New York City Hall 🗽

NY, NY
New York dispensary owners rally at New York City Hall 🗽

The takeaway: The state said not to worry about the 500-foot rule, but cannabis operators are demanding concrete action. 

Driving the news: Dozens of business owners rallied in New York City on Friday, calling on the mayor and governor to intervene after a new regulatory interpretation of proximity rules for dispensary locations from the state's Office of Cannabis Management (OCM) resulted in over 150 businesses learning they were potentially in violation last week.

New York state law requires that cannabis businesses be located no closer than 500 feet away from the property line of a school, but until July 28, the OCM measured from the front entrance of the school. That correction suddenly left 105 open shops and 47 applicants actively in violation of the rule.

What they're saying: "Our banks have very clearly told us if you do not have a valid license, you will have to withdraw your funds from our bank. You will not be allowed to bank with us,” Osbert Orduña, CEO of The Cannabis Place, said.

“The New York State cannabis law is also very clear. It clearly says that a supplier, a wholesaler, a farmer, a cultivator cannot sell product to a dispensary that does not have a valid license. There is no such thing as an under review status. It simply does not exist. It is a made up term that came out from an OCM publication last week. There is no standing in the cannabis law for that.”

Orduña and other affected business owners and supporters rallied on the steps of New York City Hall on Friday, demanding action from lawmakers.

Orduña's license expires in October, meaning he and any other operator that gained their approval at about the same time, would not be able to renew their license before the legislature reconvenes in January. 

A temporary fix? OCM told impacted licensees they can continue operating despite proximity violations, clarifying it is not ordering closures, relocations, or changes to operations — even if licenses are technically expired — while awaiting a legislative fix. However, without a clear timeline for that fix, licensees remain in legal limbo.

A legislative fix? In the meantime, Governor Kathy Hochul has been rumored to be planning a call for a special legislative session in October to address a budget shortfall. The rally goers, called on her to also use that special session to correct the industry’s distance dilemma. 

Hochul has said she intends to protect these business owners, the OCM has said that they plan to keep license renewal applications "under review" and allow the businesses to continue until there is a legislative fix, while state Sen. Luis Sepúlveda filed a bill that would grandfather existing dispensaries that now find themselves in violation of the 500-foot rule. 

Businesses are still worried that the proposed fixes may be too little, too late. 

The final word: "We are very clear in that we, the 152, and every other licensee in the entire supply chain needs to have protection from our legislature, from our governor, so that future administrations don't decide to reinterpret the rules yet again and have a drastic and detrimental impact on our communities, on our businesses and ultimately on New York State." Orduña said. 

-ZH

"This wasn't an oversight; it wasn't a mistake — it was a choice. Because if we had conducted a measurement in [this] particular way, there wouldn't be space for dispensaries in much of the city." Former OCM Executive Director Chris Alexander told Spectrum News 1 about the state's decision to measure distance from the entrance of a school rather than its property line.

Trump reportedly weighing rescheduling cannabis 🚀

President Trump is reportedly privately weighing whether to reclassify cannabis from the most restrictive Schedule I to the less restrictive Schedule III, both The Wall Street Journal and CNN reported over the weekend. Trump told guests — including Trulieve CEO Kim Rivers — at a fundraiser earlier at his New Jersey golf club earlier this month. 

OMMA shuts down a lab over contaminated products 🤮

The Oklahoma Medical Marijuana Authority announced on Friday that it suspended the license for Greenleaf Labs, a cannabis testing facility. A routine inspection from state officials found that there were significant contamination problems and OMMA has urged consumers to avoid products that were tested for total yeast and mold between April 2023 and July 31, 2025. OMMA has yet to finalize a list of affected products. 

Federal agents arrest Boston Sheriff who was allegedly extorting a cannabis company 👮

Suffolk Sheriff Steven Tompkins, whose jurisdiction includes Boston, Mass., allegedly pressured an unnamed cannabis company to give him a financial stake at a discounted rate prior to the company launching an IPO in mid-2021, leaning on the claim that he had helped the company get state approval for their license. Those shares immediately jumped in value after the launch, but they eventually dipped down below the value Tompkins eventually paid. After which, he allegedly demanded a refund of his shares at their original price, which the company agreed to. If convicted Tompkins could face up to 20 years in prison and a fine of $250,000.

Cannabis earnings season continues. 

• Canopy Growth reported a net loss of $41 million (CAD) on $88 million in revenue. Revenue was up from the same quarter last year, when the company pulled in $75.8 million, but they were able to cut down their net loss, from last year's $127 million. 

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