Why it matters:
A New York Supreme Court judge has lifted a temporary injunction that had previously halted approval for state cannabis licenses. However, only 30 licensees are currently affected by the decision, compared to the more than 400 applications that are still on hold statewide.
What they are saying:
Judge Kevin Bryant’s decision means that the licenses identified by the Office of Cannabis Management will be exempt from the injunction. The affected licensees were deemed “ready to open” by both the Cannabis Control Board and the city. The Office of Cannabis Management expressed disappointment with the ruling but remains committed to working towards an equitable cannabis market.
The big picture:
The lawsuit against the Office of Cannabis Management and the New York Cannabis Control Board was filed by a group of military veterans, who claimed that priority in the licensing process was given to “justice-involved” applicants over disabled veterans. The Marijuana Regulation and Taxation Act, signed in March 2021, prioritizes five “social and economic equity” groups, including distressed farmers, individuals in areas disproportionately impacted by the War on Drugs, and service-disabled veterans.
What to watch:
The Cannabis Control Board is set to hold a meeting on September 12 to vote on state licensing regulations. The next hearing for the case is scheduled for September 15. It remains to be seen how the court will resolve the issue and whether it will honor the promises made to justice-impacted license holders.
Takeaway:
The decision to lift the injunction affects a small number of licensees, but it has broader implications for the fairness and equity of the cannabis licensing process in New York. The lawsuit filed by military veterans highlights concerns about prioritization and access for marginalized groups. The outcome of the case and the subsequent regulatory decisions will shape the landscape of the state’s cannabis industry.
