New York Senator Pushes Bill to Shield Cannabis Dispensaries From School Zone Rule

A New York senator is stepping in to fix a growing headache for dozens of licensed cannabis dispensaries caught in a zoning mess that wasn’t their fault.

Senator Luis R. Sepúlveda filed a bill on Sunday aiming to protect more than 100 dispensaries—most in New York City—that were greenlit by state officials but now face forced relocations after a belated rules correction from the Office of Cannabis Management (OCM).

What the Bill Actually Does

Senate Bill S8469, filed August 4, would make a surgical amendment to New York’s cannabis law. It proposes a simple exemption: any adult-use dispensary that was opened before July 28, 2025, would not be subject to the 500-foot school proximity buffer outlined in current regulations.

In practice, this means these businesses wouldn’t have to move—even if they’re too close to a school under updated compliance maps released just days ago.

According to OCM, 106 dispensaries are affected, 87 of them within New York City. These businesses had already been issued licenses and opened their doors—some for months—before discovering that their location approvals were now technically invalid.

One sentence says it all: Sepúlveda’s bill would grandfather those dispensaries in.

Where Did It All Go Wrong?

This all stems from a mistake that started at the top.

The OCM had previously approved locations that, it turns out, violate the state’s own rule prohibiting dispensaries from being within 500 feet of schools. The agency didn’t apply the rule consistently—and didn’t catch the error until they released a proximity map update on July 28.

This left dispensary operators blindsided.

Some had signed long-term leases. Others had already poured cash into renovations, signage, staff training—you name it. And now, through no fault of their own, they’re being told their location is out of bounds.

“It’s not just a technicality—it’s livelihoods,” one NYC dispensary manager told local press, asking not to be named due to uncertainty around their license.

Who’s Covered, Who’s Not

It’s important to note: this fix only covers adult-use dispensaries.

That excludes medical dispensaries, two of which—PharmaCann and Etain—are reportedly affected by the OCM’s proximity correction too. But they’re not covered under the new bill.

When asked if this exclusion was intentional, Sepúlveda’s office declined to comment immediately. The bill’s language, however, is crystal clear: it only applies to adult-use retailers.

Here’s a simple breakdown:

Sepúlveda, a Bronx Democrat, has kept a relatively low profile in cannabis policy up to now. But this move is likely to earn him goodwill in NYC’s cannabis community, especially among small business operators.

The political strategy is plain enough—frame the issue as one of fairness.

• The businesses followed the rules.
• The state made the mistake.
• The state should fix it.

That message could land especially well in an election cycle where small business support is a talking point across both parties.

It’s also a way for lawmakers to check OCM’s authority without calling for heads to roll.

Timing Is Tight and Stakes Are High

The bill’s July 28, 2025 deadline is worth flagging. It gives lawmakers roughly one year to get this legislation across the finish line—and gives affected dispensaries some breathing room in the meantime.

But nothing is guaranteed.

There’s no clear indication yet whether the bill will gain fast-track support in Albany. And OCM hasn’t confirmed whether enforcement against the current noncompliant sites is paused while the bill is under consideration.

What’s certain is that dispensaries caught in this snafu are holding their breath.

One small business owner in Brooklyn summed it up in four words: “We’re just waiting. Again.”