The state’s recreational marijuana sector is facing another delay of at least two weeks, as a state Supreme Court judge ruled on Friday that the injunction preventing the issuance of new licenses and the approval of plans for opening retail dispensaries will remain in effect until the upcoming hearing.
The program for Adult-Use Retail cannabis with conditions has been put on hold due to a legal challenge by a group of service-disabled veterans who argue that the program is unconstitutional. They claim that New York’s Marijuana Regulation & Taxation Act, which legalized recreational cannabis in the state in 2021, mandates prioritizing licenses for disabled veterans and other minority groups as well.
Ulster County Supreme Court Justice Kevin Bryant decided on Friday to uphold the temporary ban until the next hearing can take place in two weeks.
This decision has disappointed not only advocates and hopeful cannabis entrepreneurs, but also cultivators. The interim Executive Director of the Cannabis Association of New York, Hal McCabe, expressed profound disappointment with the ruling and its potential ramifications for the legal marijuana industry in the state. McCabe emphasized the negative impact on jobs, businesses, and the industry as a whole, highlighting that not only will no new licenses be issued, but also existing businesses holding Conditional Adult-Use Retail cannabis licenses will remain closed. McCabe called for the Legislature to reconvene for a special session to solidify the program into law, similar to the approach taken with other segments of the industry.
This legal case represents the second significant obstacle within a year, further hindering the expansion of stores and contributing to the proliferation of illicit dispensaries throughout the state. Consequently, New York’s cannabis industry has struggled to gain traction, with only around 20 open storefronts out of over 430 issued retail licenses.
McCabe stressed the urgency for the Office of Cannabis Management and the Cannabis Control Board to temporarily suspend registered organizations’ involvement in the adult-use cannabis market until further notice. He also emphasized the need to seriously consider implementing a comprehensive emergency regulations package to address the risks to public health and safety posed by the proliferation of illegal shops.
