Hundreds Of New York Weed Licenses Unblocked As Fed Judge Rejects Out-Of-State Applicants' Discrimination Claims

Zinger Key Points
  • An injunction would allow illegal operators who dominate the market to continue to do so, the judge said in the ruling.
  • The federal judge said letting licensed businesses to operate is in the public interest and outweighs concerns raised in the lawsuit.
  • The New York State Department of Health announced its intention to accelerate efforts to reduce vaping among youth.

Federal Judge Anne M. Nardacci rejected a legal challenge on Friday to New York state's marijuana licensing program brought in December by two California applicants who argued that the program unconstitutionally discriminates against out-of-state residents

Two companies, Variscite New York Four LLC and Variscite New York Five LLCfiled the lawsuit against New York’s Office of Cannabis Management (OCM) arguing that the cannabis licensing program unfairly favors state residents, in violation of the Dormant Commerce Clause. Judge Nardacci said that allowing licensed businesses to operate is in the public interest and outweighs concerns raised in the lawsuit, reported Breitbart.

 The ruling could result in the issuance of hundreds of licenses in New York. 

Nardacci said the Dormant Commerce Clause does not apply to the federally illegal cannabis trade and should stop states from creating measures to limit interstate commerce in the absence of rules from Congress. 

The judge's decision came shortly after Governor Kathy Hochul called the state’s cannabis rollout a "disaster."

N.Y. Attorney General Letitia James (D) praised the ruling, stating "This is an important victory in our efforts to ensure that disproportionately impacted communities are given their fair share in the legal cannabis industry." 

See Also: Another Legal Battle Erupts Over Cannabis Licensing Process in New York

Ending Youth Vaping 

Meanwhile, the New York State Department of Health recently announced it will accelerate its effort to reduce vaping among youth, aiming to eliminate it fully, reported Union-Sun & Journal.

"The dangers of e-cigarettes is the amount of THC, the active ingredient in marijuana, contained in them," Madison County Sheriff Todd Hood said. "The amount of THC in a marijuana cigarette could be as low as three percent. In e-cigarettes that can be increased by adjusting the controls on the device to eighty or ninety percent."

Recently published research revealed that THC-dominant joints delivered 19 to 28 milligrams of THC per cigarette, the CBD-dominant versions each delivered 90 to 100 milligrams of CBD, 200 to 400% more of the dominant cannabinoid.

The DOH added that the majority of e-liquids contain nicotine, which has negative impacts on our health, especially in the case of adolescents and young adults.

"I would tell any student or young adult to be cautious about taking anything offered to them," Hood said. "You don't know what you're getting."

See also: Lawsuit Alleges Bias In New York Cannabis Equity Program, Lawyer Slams ‘Absurd And Offensive' Claims

Benzinga Cannabis Conferences are coming to Los Angeles. Join the Benzinga Cannabis Market Spotlight: California, and unlock the future of cannabis at the premier networking event in Culver City on February 22. Connect with top industry leaders, gain insider insights into the investment landscape and shape the evolving markets in California and beyond. Don't miss this chance to be at the forefront of the cannabis industry's growth and innovation! Join now.

Photo: Courtesy of Branding Pot via Shutterstock 

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: CannabisNewsLegalAnne M. NardacciLetitia JamesNew York CannabisNew york cannabis lawsuitNew York cannabis licensesNew York vapingTodd Hood
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Cannabis is evolving – don’t get left behind!

Curious about what’s next for the industry and how to leverage California’s unique market?

Join top executives, policymakers, and investors at the Benzinga Cannabis Market Spotlight in Anaheim, CA, at the House of Blues on November 12. Dive deep into the latest strategies, investment trends, and brand insights that are shaping the future of cannabis!

Get your tickets now to secure your spot and avoid last-minute price hikes.