New York State’s efforts to establish a thriving marijuana industry have hit another roadblock, as a state court order has temporarily halted the awarding and processing of licenses for new dispensaries. This setback comes as a surprise, considering that there were supposed to be over 150 licensed dispensaries in the state by now. However, there are currently only 23 legal dispensaries, with many of them only offering deliveries. So why is the rollout delayed, and what does this mean for the future of the industry?
The delay is due to a lawsuit filed by a group of veterans who became disabled during their military service. They challenged the state’s criteria for awarding dispensary licenses, arguing that the state did not have the authority to create a new license for only one class of applicants. They claimed that this power lies with the Legislature, which mandated that everyone be able to apply for licenses at the same time. Another group, led by companies already licensed to sell marijuana to medical patients, filed a similar lawsuit in March but did not request a stop to licensing.
Justice Kevin R. Bryant of State Supreme Court in Kingston, N.Y., issued a temporary hold in response to the veterans’ lawsuit. He instructed the state and the veterans to negotiate a settlement while granting some licensees’ requests to testify at a hearing next week in favor of lifting the restraining order. The next hearing is scheduled for August 25, and it remains uncertain when the rollout will resume.
If an agreement is not reached, Justice Bryant could lift the order if he believes the veterans are unlikely to win their case. Alternatively, if he finds the state’s defense weak, he could grant the veterans’ request for a stricter injunction that would extend the pause on licensing until the case is resolved. The issue could also be resolved if the Legislature called a special session to pass a law authorizing the new dispensary licenses. A major industry group has publicly called for lawmakers to take that step.
If the case drags on, state regulators will have to postpone the planned expansion of the market in the fall. Regulations that were scheduled to be finalized in September would need to be revised, and the application period for a broader variety of licenses would not open in October as planned. This could result in hundreds of licensees going out of business and being on the hook for millions of dollars collectively. Additionally, farmers and manufacturers are struggling to find places to sell their goods, and the state could be left with a surplus of cannabis by the end of the year.
The delays in New York’s marijuana industry can be attributed to various factors, including a prolonged impasse between former Governor Andrew Cuomo and the Legislature over who should lead the regulatory agency. The Office of Cannabis Management spent the next year hiring staff, drafting regulations, and setting up the supply chain. However, the rollout faced further obstacles, such as a lawsuit challenging residency requirements and difficulties in finding investors and suitable storefronts for the first licensees.
In the absence of licensed retail stores, the state has allowed retailers and producers to host farmers’ market-style showcases where consumers can meet with growers and manufacturers. However, only retailers can sell directly to consumers. The Office of Cannabis Management provides a list of upcoming showcases on its website.
Overall, the delays in New York’s marijuana industry have created uncertainty and frustration for stakeholders, from licensees to farmers and manufacturers. The outcome of the veterans’ lawsuit and potential legislative action will determine the future of the industry and whether it can fulfill its promise of economic growth and job creation in the state.
Original Story at www.nytimes.com – 2023-08-18 23:24:10
Comments are closed.