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NY Cannabis 500-Foot Rule: School & House of Worship Proximity (2026 Update)
Confused about the NY 500-foot rule? This explains school and house of worship distance requirements, the 2026 fix, and what it means for your dispensary.
What This Covers
- Who is protected
- What changed
- How distance is measured
- What happens if you move locations
- What you should do right now
Quick Answer (For Operators in a Panic)
If you were licensed before February 11, 2026:
You may continue operating at your current location and renew your license.
If OCM confirmed your site was compliant in writing before the fix:
Your application proceeds under the prior review method.
If you change locations after February 11, 2026:
Your new site must meet the updated “same street + 500 feet / 200 feet” rule.
What Changed in 2026
The law now clearly states:
Retail dispensaries cannot be:
- Within 500 feet of a school entrance located on the same street
- Within 200 feet of a building exclusively used as a house of worship located on the same street
Distance is measured:
- In a straight line
- From the center of the nearest dispensary entrance
- To the center of the nearest school or house of worship entrance
Who This Applies To
- Adult-Use Retail Dispensaries (AU-Retail)
- CAURD Licensees
- Microbusiness Retail Locations
- Registered Organization Dispensaries (RODs)
If you sell adult-use cannabis to the public, this applies to you.
The July 2025 OCM Proximity Issue
In July 2025, former OCM Executive Director Felicia Reid announced that OCM had been measuring proximity in a way that did not align with statutory language.
This created:
- Lease risk
- Buildout risk
- License renewal uncertainty
- Market panic
Operators who had already invested millions were suddenly unsure whether their locations were compliant.
The February 2026 legislation was enacted to stabilize the market and prevent retroactive harm.
If You Are Already Licensed
If your license was issued before the legislation took effect:
- Your current location is deemed compliant.
- Renewal cannot be denied solely due to proximity.
- You may continue operating at that address.
Important:
If you change storefronts, entrances, or relocate, the new site must meet updated standards.
If You Are an Applicant
If OCM previously confirmed your site complied (in writing):
- Your application must be reviewed under the prior method used before July 28, 2025.
If you did NOT receive written confirmation:
- Your site will be reviewed under the updated February 2026 standards.
Save all OCM emails regarding your location.
What Counts as an “Entrance”
Counts:
- Door regularly used by students
- Door regularly used by worship attendees
- Door regularly used by dispensary customers
Does NOT count:
- Emergency exits
- Delivery-only doors
- Maintenance entrances
- Doors without exterior hardware
If a building is set back:
- Measurement begins where the walkway meets the building line or public thoroughfare.
What Is an “Exclusive” House of Worship?
A building is still considered exclusively a house of worship even if it hosts:
- Fundraisers
- Community events
- Support groups
- Yoga classes
- Blood drives
Incidental uses do not disqualify exclusivity.
If You Are Considering Moving Locations
Before signing a lease:
- Confirm same street alignment.
- Identify actual customer entrance.
- Identify school/student entrances.
- Identify house of worship public entrances.
- Measure straight line center-to-center.
Do not rely on informal estimates.
Frequently Asked Questions
What if the school is around the corner?
The “same street” language matters. Corner properties require careful review.
Does a church daycare count?
If it is part of the house of worship building, it may still fall under the rule.
Does this apply to medical dispensaries?
This applies to adult-use retail locations. Registered Organization retail sites are included.
Why This Matters
Proximity compliance affects:
- License approval
- Lease enforceability
- Financing
- Insurance underwriting
- Renewal approval
- Investor risk
If your location fails proximity, your entire retail operation is at risk.
Related Pages
Source Material
- Signed Legislation S9155/A10140
