The New York Supreme Court lifted the injunction which prevented state marijuana regulators to process hundreds of new retailer licences. This opens the way for a significant expansion of the state’s cannabis industry.
The court action came days after New York Cannabis Control Board approved settlement agreements for two lawsuits which have prevented regulators from proceeding with licensing since August.
In a Friday press release, CCB chair Tremaine Wright stated that “this decision provides much-needed relief to hundreds of provisional licencees, who have, up until now, had their businesses sidelined.” “We are committed to a fair, transparent and open process as we grow and support New York’s cannabis industry.”
BREAKING: NYS Supreme Court lifted injunctions that prevented Office from processing CAURD licenses. pic.twitter.com/YV3L4EHXcs
NYS Office of Cannabis Management December 1, 2020 HTML0
A group of disabled veterans filed one of the lawsuits which was resolved as part of the settlement – Carmine Fiore et al. v. New York State Cannabis Control Board – claiming that the state’s prioritization for social equity applicants, who were the most affected by criminalization, unconstitutionally excluded them from the pool of eligible applicants.
The regulators have agreed to give each of the four plaintiffs an adult-use cannabis retail license on a pre-selected site in exchange for the dismissal of the lawsuit. One of the plaintiffs still hasn’t chosen a site. In order to focus on the backlog, the state agreed to suspend approvals for any additional conditional licences until April 20, 2024. CCB is also establishing a task force for veteran-owned businesses to promote veteran participation in the market.
The other case that has been settled was Coalition for Access to Regulated & Safe Cannabis v. New York State Cannabis Control Board, which was brought by medical cannabis operators as well as prospective adult-use applicants. The lawsuit also claimed that the regulators misapplied the state’s cannabis law and that existing medical marijuana businesses were eligible for immediate licensing.
In response, the regulators accepted the conditions in a settlement approved by the court, meaning they will grant adult use licenses to five registered organizations that were behind the lawsuit.
Chris Alexander, Executive Director of the Office of Cannabis Management, said: “Today, New York is celebrating its dream of equity and a licensed, legal cannabis dispensary for each New Yorker.” “New York, the only state where people who were harmed by the prohibition are building the cannabis industry. This includes non-profits that serve formerly incarcerated persons.”
He said: “I am also deeply relieved that many entrepreneurs who spent the past three months in limbo are now able open their cannabis businesses. And for our communities who will soon see more stores opening faster.” “We will continue to support the licensees who can now proceed with their applications.”
As of now, only two dozen adult-use marijuana stores are licensed in the state. In October, the state regulators opened the application period for hundreds new general marijuana business licences despite the court injunction.
Despite the long-term rollout of the cannabis law, illegal cannabis operators are now widespread in the state. The governor announced that they will “intensify” enforcement.
The New York Senate Cannabis Subcommittee was formed in April by Sen. Jeremy Cooney, (D) and has been chaired since then. In October, the Subcommittee heard testimony from witnesses, and discussed possible legislative solutions for the ongoing implementation problems of cannabis legalization in the state.
Meanwhile, Gov. Kathy Hochul (D), recently signed legislation to ease the way financial institutions can work with clients licensed to grow cannabis.
She also signed another bill intended to provide tax relief for New York City cannabis businesses, which are currently prevented from making federal deductions due to an Internal Revenue Service code (IRS), known as 280E.
Hochul had signed an earlier budget bill in the past year which included provisions that allowed state-level cannabis businesses to deduct tax — a partial remedy for the ongoing federal problem. However, New York City’s own tax laws were not affected by this change. This new measure is intended to close that policy gap.
The governor also approved legislation this week that allows hemp seeds to be added in animal feed, for pets, horses, and camelids like llamas, alpacas, and camelids.
In an effort to increase consumer access to marijuana that is legal, the OCM launched the Cannabis Growers Showcase, a program that allows growers and processors who are licensed to sell directly to the public.
accepted applications as soon as approved the program. In August, the Hudson Valley hosted its first pop-up market. Another was held near the state fair.
In September, about a third (66) of the state’s legislators wrote Hochul to urge her to to sign a law that would allow licensed marijuana manufacturers to sell their products to tribal retailers. This plan will allow cannabis farmers to release surplus products to tribal retailers.
New York regulators continue to work on debunking the “false narrative” that marijuana is often contaminated with fentanyl, a “misconception,” that is “widespread,” despite a paucity of evidence. OCM released a factsheet recently on the subject, stating that while fentanyl can be found in heroin and MDMA, the anecdotal evidence of marijuana being laced with fentanyl is unfounded.
The Office of Addiction Services and Supports also recently revised its guidance on THC testing in people receiving treatment for substance abuse disorder. It advises marijuana screening in cases when “the patient has indicated that a reduction or cessation of use of cannabis is part of their treatment goal.”
The Black Friday after Thanksgiving was a time when regulators encouraged consumers to shop at licensed cannabis retailers and take advantage of the great deals.
Rhode Island Governor celebrates one full year of legal marijuana sales to adults
Photo elements are courtesy rawpixel, and Philip Steffan.
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