A judge in New York blocked the state’s retail marijuana licensing plan on Friday, dealing a devastating blow to the fledgling market after a group of veterans sued over rules that would allow people with drug convictions to open their first dispensaries .
New York Supreme Court Justice Kevin Bryant blocked the state from processing or issuing marijuana dispensary licenses with an injunction that accused regulators of making plans that contradict state laws legalizing marijuana.
The order is a serious setback for the state’s legal marijuana industry, which has been characterized by slow licensing, a surplus cannabis crop and legal challenges that have led to a thriving illegal market.
The veterans’ lawsuit alleges that state marijuana regulators improperly limited the first round of licenses to people with a history of marijuana convictions, rather than the broader group of so-called social equity applicants included in the original law. Last week, a judge temporarily blocked the state’s plan as legal wrangling in the case ended, and Friday’s order extended the closure.
Veterans representatives said in a statement that state regulators failed to comply with the law, preventing licenses from being granted to veterans and other minorities who should have been prioritized for licensing.
“From the beginning, we have been committed to fighting for equal access to this new and growing industry,” the statement said, adding, “We look forward to working with the state and the courts to open the program to all eligible applicants.”
Lawyers for the state have warned judges that any plan to stop licensing would cause financial harm to those who have already started spending money to start businesses under temporary licenses. The state Marijuana Authority had no immediate comment on the order Friday.
In his order, Bryant wrote that the potential financial woes were the fault of state regulators, who were undeniably aware of the legal issues with licensing rules.
Still, the judge granted waivers to licensees who met all of the state’s requirements by Aug. 7, and allowed applicants seeking waivers to present their cases to the court on a case-by-case basis. He also ordered state regulators to meet and begin finalizing marijuana licensing rules.
The order follows a vote in May in which state regulators finally decided federal lawsuit settled After a Michigan company claimed New York’s licensing system was unconstitutional and favored New Yorkers over out-of-state residents, they were unable to issue permits in the Finger Lakes region.
Legal challenges and slow licensing have led hemp farmers to complain there aren’t enough legal sellers to handle their crops.Regulators approved the sale last month Marijuana at the Holidays Attempt to resolve these complaints.
Meanwhile, authorities have been working to shut down illegal cannabis shop This is happening across the state, especially in New York City, as unlicensed sellers fill a legal vacuum.
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