New York Supreme Court Judge Strikes Down Some Cannabis Regulations, Unsettling Industry Stakeholders

Zinger Key Points
  • New York’s cannabis industry panicked Thursday when a judge’s ruling appeared to, but didn't strike down regulations over recreational weed.
  • In the end, Thursday's ruckus was another bump in the winding road toward alleviating the cannabis chaos that holds New York in its grip.

In an odd turn of events, an Albany County Supreme Court judge struck down some, not all as previously thought, of New York’s adult-use cannabis regulations. The ruling, which deemed the regulations arbitrary and unconstitutional, was viewed as a challenge to NY’s Office of Cannabis Management (OCM).

What Happened: Judge Kevin Bryant‘s ruling stemmed from a lawsuit initiated by a coalition including Leafly Holdings LFLY, Stage One Dispensary and an informed cannabis consumer. Leafly argued in the suit that the NY Cannabis Control Board’s rules unfairly prevented dispensaries from advertising on its platform and sought to invalidate those particular restrictions. The judge voided the rules dealing only with so-called third-party platforms.

Temporary Panic

Though the legal challenge targeted regulations restricting third-party marketing, the ruling invalidated portions of the OCM’s regulatory framework, encompassing segments of the adult-use market. This is what caused an uproar among the state’s cannabis stakeholders until it was made clear that a key portion of the order turned out to be a mistake. A Wednesday ruling was amended on Thursday to reflect a much narrower decision after cannabis growers, sellers and other supporters voiced concerns about the implications.

Already On Shaky Ground

Questions have loomed over the future of the New York cannabis industry since the very beginning. The judge’s decision, though not as serious as initially thought, cast new skepticism on New York’s struggling cannabis regulatory bodies. The state’s troubled rollout, slow licensing process, a laundry list of legal challenges and the proliferation of thousands of illicit weed shops have all combined to obstruct what was hoped to be a multi-million-dollar cannabis market. A recent idea to put an end to the latter was suggested this week in a bill that shops caught possessing or selling illicit weed would be stripped of their licenses to sell cigarettes, alcohol and lottery tickets.

So, in the end…Thursday’s ruckus was another bump in the winding road toward alleviating the cannabis chaos that holds New York in its grip. Keep your seatbelt on, the ride is not nearly over.

Now read Cannabis Conundrum Heads To NY Supreme Court: Lawsuit Seeks To Overturn Impossible-To-Obey Regulation

This news and other New York issues will surely be discussed at the upcoming Benzinga Cannabis Capital Conference in Florida on April 16 and 17.

The two-day event at The Diplomat Beach Resort is a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world. Get your tickets now on bzcannabis.com – Prices will increase very soon!

Now Read: DeSantis Furious As Legal Weed, Abortion Rights Move Toward November Ballot, Calls Amendments ‘Radical,’ ‘Confusing’ For Voters

Photo: Courtesy of Ulf Wittrock via Shutterstock and Jose Luis Sanchez Pereyra via Unsplash 

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Posted In: CannabisGovernmentNewsRegulationsLegalTop StoriesJeff SchultzLeafly Holdingsnew yorkNew York CannabisOffice of Cannabis ManagementStories That Matter
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