Judge Restricts Issuance of Marijuana Licenses in Select NY Regions, Including Mid-Hudson

A U.S. Judge has recently issued an injunction which blocked five NY regions from distributing marijuana retail licenses. Credit: Photo by Budding on Unsplash

A federal judge recently suspended the distribution of recreational marijuana dispensary licenses in parts of New York state to work out complications with the current application process. 

The Conditional Adult-Use Retail Dispensary (CAURD) Licenses are the first retail dispensaries to open legally for cannabis sales in the state, and were intended to be given to those who faced marijuana convictions prior to its legalization in March 2021—but this ruling now prohibits the Office of Cannabis Management (OCM) from giving them out in five regions: Brooklyn, the Finger Lakes, Central N.Y., Western N.Y. and the mid-Hudson area.

The war on drugs, a movement with the objective to end illegal drug use/issuance, sentenced many users and sellers to longer prison terms. Due to this, many African Americans were unjustly put in jail for drug crimes. As an effort for resolution, the CAURD license system awarded such permits to those who have had marijuana convictions in the past, as well as some businesses whose leader is associated with such convictions or those with relatives in the same situation,according to WTEN Albany. Those who were convicted before March 31, 2021 were prioritized and awarded the first 100-200 licenses handed out by the state. 

Although this decision was made in hopes to reconcile previous injustices, out-of-state residents find they are being discriminated against in the applicant pool. WTEN Albany reported that a Michigan company, Variscite N.Y. One Inc., filed a lawsuit against the OCM —claiming the process to obtain a CAURD license breaks an early commerce clause that prohibits states from disfavoring out-of-state occupiers. 

U.S. District Court Judge Gary Sharpe stood by Kenneth Gay’s accusations and initiated the injunction on Nov. 10, temporarily blocking the state from issuing cannabis licenses in certain areas. Variscite’s application was deemed ineligible because his marijuana conviction under Michigan state law “has no significant connection to New York,” per the ruling. 

According to the executive director of the Cannabis Association of New York, Dan Livingston, and the Highlands Current, the ruling won’t halt the launch of retail cannabis sales as it is only influencing five of the 14 regions in New York. The OCM said on Nov. 11 that its board will still consider CAURD License applications for up to 150 individuals and businesses later this month, according to Eyewitness News