A group of licensed cannabis dispensaries in New York is suing state regulators over a rule change that threatens to shutter or relocate dozens of businesses.

The lawsuit, filed Aug. 15 in State Supreme Court in Albany, argues that the state’s Office of Cannabis Management (OCM) abruptly reinterpreted a law requiring cannabis shops to be at least 500 feet from schools. Since 2022, regulators measured that distance from one entrance to another. In July 2025, officials said the law should have been measured from a school’s property line, a correction that rendered at least 152 dispensaries noncompliant according to the New York Times and the Associated Press.

Who Is Suing

The twelve petitioners include seven licensed businesses that are open or fully approved (ConBud, The Cannabis Place, Summit Canna, Hush, High Fade, Housing Works Cannabis Co., and Common Courtesy Dispensary) and five provisionally licensed applicants, Rezidue, Elise Pelka, Toastree, Monarch NYC, and Luxe Leaf Boutique. The businesses span Manhattan, Queens, and the Bronx, as reported by Cannabis Business Times.

The Lawsuit’s Arguments

The complaint states that regulators “poured their life savings into launching their businesses” after approvals from the state, only to be told their locations are now in violation. Petitioners say OCM changed its interpretation of the law without a formal rulemaking process, violating the State Administrative Procedure Act. They also argue that the change strips them of due process and equal protection.

“Relying on those approvals, petitioners poured their life savings into launching their businesses,” the complaint says. “They signed leases, completed build-outs, hired employees and opened their doors to the public under the state’s very detailed framework. But now, in a complete about-face, OCM incredulously claims it got the law wrong all along.”

Attorney Jorge Luis Vasquez Jr., who represents the plaintiffs, said the harm goes far beyond money. “This is way more than just financial harm to small businesses,” Vasquez told Gothamist. “This goes beyond money. This is time. This is resources. This is energy. This is building relationships with communities.”

The Stakes

State officials acknowledged the mistake affects 108 licensees and 44 provisional applicants. The OCM has told licensed businesses they can stay open for now, but cannot renew licenses until lawmakers act. Provisional applicants will need to relocate, with access to a $15 million fund that offers up to $250,000 each, according to Gothamist and the AP.

For many dispensary owners, that relief falls far short. The lawsuit cites buildout costs between $500,000 and $1 million per business, plus millions more in operational expenses. Several plaintiffs signed personal guarantees on leases, creating a risk of bankruptcy if they are forced to move, Cannabis Business Times reported.

Equity Concerns

Eleven of the twelve plaintiffs hold conditional adult-use retail dispensary (CAURD) licenses, reserved for justice-involved New Yorkers, and one holds a social and economic equity license. Plaintiffs argue the rule change undermines the state’s promise to prioritize those harmed by prohibition.

“OCM’s reinterpreted rule disproportionately harms these stakeholders and licensees and undermines the very purpose of this law,” the complaint states.

In a joint statement sent to High Times, the coalition Save New York Legal Cannabis for All said that licensed cannabis operators “have worked in good faith, invested their life savings, and followed the rules set forth by the State.” The group, which includes ConBud, The Cannabis Place, Rezidue, Summit Canna, Hush, High Fade, Elise Pelka, Housing Works Cannabis Co., Common Courtesy Dispensary, Toastree, and Monarch NYC, warned that OCM’s announcement threatens the small business owners and equity licensees who form “the backbone of this industry.”

“OCM was supposed to follow a multistep process laid out by law before making such an earth-shattering determination, yet it completely failed to do so,” the statement reads. “Worse, OCM’s proposed ‘solution’ to the damage caused by its carelessness will not actually help us. This so-called solution… still leaves licensees out of compliance, and when a cannabis business is out of compliance, it cannot access banking, real estate, or investment—no matter what the state says.”

The coalition said the lawsuit was filed “to ensure every licensed operator is protected and given a fair path to compliance and success,” and called on lawmakers to adopt a “functional solution that includes all operators, safeguards investments, and fulfills the promise of a truly equitable cannabis program that benefits all New Yorkers.”

State Response

OCM Acting Executive Director Felicia Reid apologized to affected businesses and said legislative intervention is needed to allow them to remain in place, according to the New York Times. Gov. Kathy Hochul called the error “a major screw-up” and promised to work with lawmakers to keep dispensaries open. A spokesperson for Hochul told Gothamist the governor “has been clear that she will work with the Legislature to ensure these hardworking businesses are able to continue to operate without interruption.”

Despite the turmoil, New York’s regulated cannabis market is expected to reach $1 billion in sales this year. But with hundreds of equity-focused businesses now facing relocation or closure, industry leaders warn that the proximity dispute could further destabilize an already rocky rollout.

Photo by Luca Bravo on Unsplash

Younger Americans are increasingly using cannabis-infused beverages as a substitute for alcohol—with one in three millennials and Gen Z workers choosing THC drinks over booze for after-work activities like happy hours, according to a new poll.

The survey from Drug Rehab USA assessed the recreational preferences of 1,000 employed adults, finding more evidence that as the marijuana legalization movement achieves greater success and as awareness of alcohol-related harms has spread, a significant portion of those generations are opting for cannabis over booze.

All told, 66 percent of American adults say they’ve tried alcohol alternatives over the past six months. And 24 percent of respondents said they’ve “at least partially” replaced alcohol with non-alcohol or cannabis-based drinks.

That trend is being led by millennials and Gen Z, one of three of whom said they used THC beverages instead of alcohol drinks.

“To unwind after work, 45 percent drink alcohol, while 24 percent use nicotine, 20 percent turn to cannabis, and 16 percent choose alcohol alternatives like mocktails, non-alcoholic beer, or CBD,” the survey found.

“When it comes to winding down after a long day, Americans are reaching for a mix of familiar comforts and emerging alternatives,” Drug Rehab USA said. “While alcohol still dominates, the competition between nicotine and cannabis shows how habits are evolving across generations.”

“After-work rituals are no longer limited to a nightly drink—or even to alcohol at all. From THC-infused beverages to nicotine pouches and non-alcoholic alternatives, today’s habits reflect a broader redefinition of what it means to unwind. While motivations vary—stress, routine, social connection—the through-line is clear: Americans are turning to consumable rituals to draw a line between work and rest. For many, those rituals begin within the hour and recur multiple times a week.”

The survey findings largely track with other research assessing emerging trends in cannabis and alcohol use.

For example, a recent rodent study determined that the cannabinoid CBD reduces rates of binge drinking and alcohol blood concentrations.

Results of a separate study published in the journal Molecular Psychiatry also indicated that a single, 800-milligram dose of CBD can help manage certain alcohol cravings among people with alcohol use disorder (AUD), supporting the use of the marijuana component as a potential treatment option for problem drinkers.

Federally funded research into the effects of cannabis on alcohol use that was published in May also found that people who used marijuana immediately before drinking subsequently consumed fewer alcoholic beverages and reported lower cravings for alcohol.

The study follows a separate survey analysis published in March that found that three in four young adults reported substituting cannabis for alcohol at least once per week—a “fast-emerging” trend that reflects the “rapid expansion” of the hemp product marketplace.

The report from Bloomberg Intelligence (BI) found that, across various demographics, cannabis is increasingly being used as an alternative to alcohol and even non-alcoholic beverages as more companies—including major multi-state marijuana operators (MSOs)—expand their offerings.

The findings were largely consist with a growing body of studies indicating that cannabis—whether federally legal hemp or still-prohibited marijuana—is being utilized as a substitute for many Americans amid the reform movement.

An earlier survey from YouGov, for example, found that a majority of Americans believe regular alcohol consumption is more harmful than regular marijuana use. Even so, more adults said they personally prefer drinking alcohol to consuming cannabis despite the health risks.

A separate poll released in January determined that more than half of marijuana consumers say they drink less alcohol, or none at all, after using cannabis.

Yet another survey—which was supported by the National Institute on Drug Abuse (NIDA) and released in December—found that young adults are nearly three times more likely to use marijuana than alcohol on a daily or near-daily basis.

That poll provided more granular, age-specific findings than a similar report published last year, finding that more Americans overall smoke marijuana on a daily basis than drink alcohol every day—and that alcohol drinkers are more likely to say they would benefit from limiting their use than cannabis consumers are.

A separate study published in the journal Addiction last year similarly found that there are more U.S. adults who use marijuana daily than who drink alcohol every day.

In December, BI also published the results of a survey indicating that substitution of cannabis for alcohol is “soaring” as the state-level legalization movement expands and relative perceptions of harm shift. A significant portion of Americans also said in that poll that they substitute marijuana for cigarettes and painkillers.

Another BI analysis from last September projected that the expansion of the marijuana legalization movement will continue to post a “significant threat” to the alcohol industry, citing survey data that suggests more people are using cannabis as a substitute for alcoholic beverages such a beer and wine.

Yet another study on the impact of marijuana consumption on people’s use of other drugs that was released in December suggested that, for many, cannabis may act as a less-dangerous substitute, allowing people to reduce their intake of substances such as alcohol, methamphetamine and opioids like morphine.

A study out of Canada, where marijuana is federally legal, found that legalization was “associated with a decline in beer sales,” suggesting a substitution effect.

The analyses comport with other recent survey data that more broadly looked at American views on marijuana versus alcohol. For example, a Gallup survey found that respondents view cannabis as less harmful than alcohol, tobacco and nicotine vapes—and more adults now smoke cannabis than smoke cigarettes.

A separate survey released by the American Psychiatric Association (APA) and Morning Consult last June also found that Americans consider marijuana to be significantly less dangerous than cigarettes, alcohol and opioids—and they say cannabis is less addictive than each of those substances, as well as technology.

Meanwhile, a leading alcohol industry association is calling on Congress to dial back language in a House committee-approved spending bill that would ban most consumable hemp products, instead proposing to maintain the legalization of naturally derived cannabinoids from the crop and only prohibit synthetic items.

AI is bringing changes and advancements to most industries – including cannabis

Whether you are a doctor in Nebraska, a restauranteur in Baltimore or senior engineer in Bellevue, Washington, it is upending how you do your job – both good and bad.  Most areas of life are being touched and here is how AI is changing the cannabis industry. Artificial Intelligence (AI) is quietly reshaping nearly every corner of modern life, and the cannabis industry is no exception. From cultivation and retail to consumer transparency, AI is bringing new efficiency, accuracy, and trust to a market long been clouded by misinformation and stigma.

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AI is also helping consumers find accurate, verifiable information in a marketplace which has sometimes struggled with exaggerated claims. Machine learning models can scan thousands of lab tests, regulatory filings, and scientific studies to identify trustworthy patterns. This gives guidance so customers are less likely to fall for marketing hype and more likely to discover which products are safe, effective, and compliant with state rules. For a generation used to researching everything from skincare ingredients to fitness supplements online, AI-driven cannabis insights are a welcome tool.

On the cultivation side, AI is revolutionizing how cannabis is grown. Smart sensors, combined with predictive algorithms, can monitor temperature, humidity, and light in real time. Farmers use these insights to maximize yield while minimizing water and energy use—an especially important consideration in an era of climate concerns and sustainability demands. By predicting plant health before problems arise, AI also reduces the need for pesticides and allows for more consistent harvests.

Retailers are benefiting as well. AI-powered inventory systems can predict which products will sell fastest, helping dispensaries avoid shortages or waste. Chatbots and virtual budtenders are guiding customers through product choices, mimicking the experience of a knowledgeable staff member but available 24/7 online. These digital assistants are especially appealing to Millennial and Gen Z consumers who prefer research-based shopping and minimal in-store pressure.

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