Marijuana Shops Sue New York After State’s Measuring Error Leaves Dozens Too Close to Schools

Dozens of licensed marijuana dispensaries across New York — including at least one in Rochester — are suing the state after regulators admitted a yearslong mistake in how they enforced school-zone buffer rules, leaving many businesses at risk of closure or costly relocation.

The lawsuit, filed in state Supreme Court in Albany by a coalition of dispensary owners, seeks to block enforcement actions against shops that were mistakenly approved to operate within 500 feet of schools. The businesses say they invested millions based on the state’s guidance, only to learn that regulators had measured setbacks from school doors instead of property lines, as required by law.

State officials acknowledged the error earlier this summer, noting that roughly 60 open dispensaries, 40 unopened licensed locations, and nearly 50 pending applications fall within the newly applied boundary. The Office of Cannabis Management (OCM) has told affected operators they may continue to run their businesses, even with expired licenses if renewals are pending, while lawmakers consider a legislative fix.

Among those caught up in the controversy is Pure Wellness Dispensary in Rochester, which opened on West Ridge Road in July. Owners Alesha and Ricardo Chambers said they were stunned when they received a notice that their shop was deemed too close to the nearby Rise Community School.

The dispensary had believed it was in compliance, measuring more than 500 feet from the school’s entrance. But under the state’s corrected calculation, the business falls short of the requirement.

To soften the blow, the state has offered relocation grants of up to $250,000 per business. But many shop owners argue that amount won’t cover the cost of buildouts, leases and loans already committed to their locations.

Gov. Kathy Hochul and OCM officials have pledged to work with lawmakers to craft a permanent solution. Some legislators are considering whether cannabis dispensaries should follow the same setback rules as liquor stores — 200 feet from schools and places of worship — rather than the stricter 500-foot standard.

However, the Legislature adjourned its regular session in June and is not scheduled to reconvene until January. Lawmakers cannot take up the issue until then unless Hochul calls a special session — a step she has not signaled she will pursue.

With the clock ticking, dispensary owners say the uncertainty threatens their livelihoods and New York’s broader legal cannabis rollout. More than 450 dispensaries are currently licensed statewide.