**Why it matters:** A judge in New York extended a temporary injunction on the issuing of cannabis dispensary licenses, preventing licensees from getting their businesses up and running. The injunction was issued in response to a legal challenge brought by a group of military veterans who argue that the state’s licensing regulations violate the constitution and were not approved by the legislature.
**What they are saying:** The veterans argue that restricting retail licenses to those with cannabis convictions violates the state Constitution. The regulation and taxation act passed in 2021 set a goal of awarding at least half of recreational marijuana dispensaries to social and economic equity applicants. So far, the Office of Cannabis Management has issued 463 licenses, but only a few dispensaries have opened. Business owners impacted by the injunction have rallied outside the courthouse, urging the judge to dismiss the lawsuit.
**The big picture:** The temporary injunction has created a delay in the opening of additional licensed retailers, allowing unlicensed operators to continue influencing the recreational cannabis market. The veterans and other licensees argue that the delay harms their businesses and prevents justice-impacted license holders from operating.
**What to watch:** The judge has set a new hearing for August 25, where a ruling on the lawsuit is expected. Legal arguments have to be filed by Tuesday, and it is possible that the judge could make a ruling based on those filings. It will be crucial to see how the judge rules and its implications for cannabis dispensary license holders in New York.
**My take:** It is unfortunate that the temporary injunction has caused a delay in the opening of cannabis dispensaries in New York. While the goal of awarding licenses to social equity applicants is commendable, it is essential to strike a balance between equity and getting businesses up and running. The resolution of this lawsuit will have significant implications for the cannabis industry in New York and its efforts towards social and economic equity.
