August 11th 2023.
If you're looking to open a cannabis dispensary in New York, you may have to think again. Recently, New York Supreme Court Justice Kevin Bryant blocked marijuana regulators from processing retail licensing until further notice, according to Politico. This ruling followed a lawsuit by a group of service-disabled veterans who claimed the priority licensing program for entrepreneurs affected by marijuana enforcement was unconstitutional.
Judge Bryant's ruling will stop the state's cannabis regulatory agencies from issuing new licenses and granting operational approval to those already licensed and working towards opening up dispensaries. Judge Bryant believes that without a court order blocking the program, there could be "genuine urgency and that immediate and irreparable injury, loss, or damage will result."
New York cannabis regulators created the recreational marijuana licensing program to give entrepreneurs with past cannabis convictions or immediate family members with past convictions a second chance. The program pairs business owners with real estate and capital, but the program wasn't as successful as the state hoped. Over two years after New York first legalized marijuana in 2021, less than 20 storefronts have opened.
The state isn't expected to issue new licenses until at least September after a cannabis regulatory board meeting, according to Fortune. Oral arguments are scheduled for Aug. 11 in Kingston, New York. Several cannabis entrepreneurs, such as Osbert Orduña of Queens, are upset with the ruling as his business is currently doing construction on a new storefront space. He calls the move a "way to pit one social equity group against the other," referring to it as "divide and conquer."
In addition to the court ruling, New York has also made changes to the sale of marijuana at festivals. Users can now purchase cannabis at festivals and other events after farmers complained there weren't enough legal dispensaries in the state to handle their harvests. While this may be a reprieve for some, the court ruling still restricts those looking to open a cannabis dispensary in New York.
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