Marijuana Moment: New York Governor Signs Bills To Fix Marijuana Business Zoning Issue That Threatened Closure Of Over 150 Dispensaries

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The governor of New York has signed legislation into law that revises zoning requirements for licensed marijuana businesses, granting more flexibility to retailers located within certain distances of schools and places of worship.

The bills, passed by the House and Senate and signed by Gov. Kathy Hochul (D) on Wednesday, also grandfather in more than 150 existing retailers whose locations were retroactively found to be out of compliance with zoning requirements that created a buffer between cannabis dispensaries and schools and churches.

Last year, New York regulators notified the licensed retailers that they were mistakenly granted approval for their locations because the way distance was measured placed them closer to schools or places of worship than was permitted under the law.

While the marijuana law as enacted restricted zoning based on distance between a retailer and a school or church property line, in multiple cases the distance was being improperly assessed based on distance from main entryway to main entryway rather than by the edge of property lines.

Once the mistake was identified, the state notified affected businesses that they would either have to close or relocate. But amid litigation and industry pressure, the governor pledged to work with lawmakers to address the issue legislatively.

Now a door-to-door distance measuring policy has been codified under the measures from Assemblymember Stefani Zinerman (D) and Sen. Liz Krueger (D).

The new law specifies that cannabis retailers cannot be located on the same street and within 500 feet of a school, nor can they be located on the same street and within 200 feet of a house of worship.

Measurements to establish that distance, the newly enacted law states, must be “taken in straight lines from the center of the nearest entrance of the premises sought to be licensed to the center of the nearest entrance of such school or house of worship.”

A justification memo attached to the legislation says it will “codify the ‘door-to-door’ policy that had been in place at [the Office of Cannabis Management, or OCM] prior to July 28, 2025, and would grandfather in licenses granted as well as certain applications previously submitted under that standard.”

“If the school, house of worship or premises sought to be licensed is set back from a public thoroughfare, the walkway or stairs leading to any such door shall be deemed an entrance; and the measurement shall be taken to the center of the walkway or stairs at the point where it meets the building line or public thoroughfare,” the bills, A10140 and S9155, state.

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Meanwhile, last month New York officials released a set of reports providing a 2025 end-of-year status update on the evolution of the state’s medical and adult-use marijuana markets—touting record sales, revenue hauls for state coffers, licensing approvals, equity initiatives and more.

All told, retail cannabis sales in New York have exceeded $2.5 billion since the passage of recreational legalization, including $1.6 billion that was generated last year alone as of November. Also, licensed storefronts nearly doubled from 261 in 2024 to 556 in 2025.

The OCM annual report also notes that Hochul signed legislation into law that expands the state’s medical cannabis program by improving patient access and “updating the program framework to better meet patient needs statewide.”

The legislation the governor signed also grants reciprocity to out-of-state residents, streamlines the patient certification process and allows adults 18 and older to grow their own cannabis plants for therapeutic use.

Separately, given confusion within the marketplace about timelines for provisional licenses, regulators said they will be extending the renewal deadline for conditional adult-use until December 31, 2026.

“This extension provides licensees additional time to secure viable locations and move toward full licensure,” OCM said. “It will also apply to any provisional licenses issued between September 9, 2025, and December 30, 2025, ensuring clarity and consistency for all provisional license holders.”

Last July, meanwhile, New York officials announced the first round of grants under a $5 million program to help retail marijuana businesses owned by justice-involved people cover startup costs.

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