New York's Cannabis Program In Turmoil As Judge Blocks New Dispensary Licenses

A New York judge has blocked the state from issuing new marijuana dispensary licenses on Friday, dealing yet another blow to the state's beleaguered cannabis industry, the rollout of which has been slow and chaotic.

What Happened

The injunction was granted to a group of four service-disabled veterans who sued the state. The four men claimed that the initial dispensary licensing process that prioritized people impacted by prior marijuana convictions was unconstitutional; they argued that they, as disabled vets, should also have been given priority.

While the judge's ruling is a victory for the veterans who brought the lawsuit, it will clearly be viewed as a setback for the state's marijuana industry and for people who were hoping to open new dispensaries. The case is likely to continue for several months. 

The injunction does not affect businesses that are already operating dispensaries or businesses that have met all requirements for licensing by August 7th.

No New Licenses

However, it does prevent the state from issuing any new licenses until the lawsuit is resolved.

The injunction will likely delay the opening of new dispensaries. It is also unclear what will happen to the businesses that were awarded licenses under the Conditional Adult-Use Retail Dispensary (CAURD) retail licensing program, which was challenged in the lawsuit.

New York State Senator Jeremy Cooney (D-Rochester) called Friday’s decision disappointing.

“Today’s decision can only be described as a deep disappointment, especially for those conditional retail applicants who have waited months and incurred significant costs, risking their livelihoods,” Cooney said in a statement released on Twitter/X.

The next court date is set for August 25th. 

Not The First Lawsuit And Probably Won't Be The Last

In March of this year, a similar lawsuit against NY's Office of Cannabis Management was brought by the Coalition for Access to Regulated and Safe Cannabis (CARSC), for basically the same reason: reserving the first 150 retail licenses for social equity applicants.

The group involved in the lawsuit includes at least four large marijuana companies, Acreage Holdings ACRHF, Curaleaf Holdings CURLF, Green Thumb Industries GTBIF and PharmaCann.