ALBANY, N.Y. — A group of New York marijuana dispensaries is suing state regulators after being approved to operate in locations later found to be too close to schools, raising questions about oversight in the state’s new cannabis industry.
“We adhered to the regulations as written, and now we’re being penalized for a state error,” said attorney Mark Nguyen, representing the plaintiffs.
Under state law, dispensaries must be at least 1,000 feet from schools. But according to the lawsuit, regulators approved licenses based on flawed mapping systems, leaving some shops within a few hundred feet of school zones.
Dispensaries now face license revocation and major financial losses. Investors warn the oversight could destabilize a fragile market already struggling to compete with unlicensed shops. “This is yet another setback in what was supposed to be a landmark legalization rollout,” said Troy Smit of the Empire State NORML.
The Office of Cannabis Management has acknowledged “mapping discrepancies” but said licensees are responsible for due diligence. State officials may offer relocation assistance, though it remains unclear how compensation would work.
New York has sought to build one of the most equitable cannabis programs in the nation, but missteps in licensing threaten to erode trust. Lawsuits could also delay the opening of more dispensaries across the state.