"Transition from cannabis wealth to potential debt for retailers": Retailers issue warnings of impending financial collapse without immediate changes to location regulations
New York Cannabis Dispensaries Face Uncertainty as Bill S8469 Aims to Offer Relief
A controversial rule change by the New York Office of Cannabis Management (OCM) has put 108 cannabis dispensaries, including 89 in New York City, at risk of closure or relocation. These dispensaries, many of which were legally operating under the old standards, have fallen within a newly enforced 500-foot buffer zone from a school’s property line.
In an attempt to address this issue, State Sen. Luis Sepúlveda has introduced Senate Bill S8469. This bill proposes to "grandfather in" adult-use dispensaries that opened before July 28, 2025, exempting them from having to move even if they fall within the new buffer zone. The bill would allow these dispensaries to be deemed compliant for license renewal and continued operation, despite the OCM's revised interpretation of proximity rules.
Jillian Dragutsky, co-owner of Yerba Buena in Brooklyn, has warned of "financial ruin" for her shop, which employs 22 people and was "supposed to be about reparations." Similarly, Brian Lane, co-founder of No Wave, a large cannabis processor in the state, warns that the recent decision could cost the industry tens of millions of dollars.
Nubia Ashley, a license holder waiting for final approval, is among those whose dispensary, Residue, is now in a non-compliant zone. Ashley, one of the very few 100% women-owned dispensaries, is in debt before making a dollar due to the rule change.
The bill is currently pending committee referral, with active advocacy underway. Dispensary owners and advocates continue to lobby for prompt legislative action to prevent closures and financial losses.
Gov. Kathy Hochul and the OCM have pledged support for the open dispensaries and license applicants impacted, allowing them to continue operating under the State Administrative Procedures Act (SAPA) during the "limbo period." However, they have pointed to the legislature to fix the problem when it returns in January 2026.
Sen. Sepúlveda and affected dispensary owners have been pushing for an earlier legislative solution, including calls for a special session. Fernando Pena and Suzanne Furbote, owners of Late Bloomers in Ridgewood, Queens, are at risk due to a nine-foot proximity issue and could face generational debt. Pena has called on state and city elected officials to get behind their cause, fearing financial ruin for Late Bloomers.
Chris Lucien, who was released from prison in 2000, sees the cannabis dispensary as an opportunity to provide generational wealth and help those less fortunate. Lucien, the owner of Bliss + Lex on the Upper East Side, has turned his cannabis company into a community asset and sponsors a youth basketball team.
Dispensary owners and advocates have argued that Gov. Hochul is the only one who can act immediately to save their businesses and the state's cannabis industry. Alex Otero of The Bronx Joint's Longwood shop is 15 feet over the new limit and relocating is considered impossible. Otero urges Gov. Hochul to call a special session to address the issue and has urged Gov. Hochul and the mayor to stand up for the dispensaries affected by the rule change.
[1] Newsday [2] Gothamist [3] The City [4] The Cannabist [5] Crain's New York Business
- The controversy over the new buffer zone for cannabis dispensaries in New York has sparked a discussion in various domains, including the health-and-wellness sector, lifestyle, and business, as this rule change threatens the livelihoods of numerous dispensaries and their employees.
- In the realm of politics, Senate Bill S8469 has been proposed to offer relief to affected dispensaries, aiming to stimulate the economy and address social concerns associated with financial ruin and generational debt.
- The recent events surrounding the cannabis industry in New York have not gone unnoticed in the realm of general news, with multiple media outlets such as Newsday, Gothamist, The City, The Cannabist, and Crain's New York Business covering the unfolding story of uncertainty for cannabis dispensaries and their advocates.
