For people anxious to get rolling in the retail marijuana business, it is another day and another delay.
On Friday, a State Supreme Court judge blocked the state’s marijuana retail licensing program after siding with complainants who argued that limiting the first dispensary licenses to people with prior convictions violated state law.
The injunction is part of a civil suit filed by service-disabled veterans, who argue that allowing “justice-involved individuals” to have the first recreational dispensary licenses is unconstitutional.
The decision by Justice Kevin Bryant, who had temporarily halted the program last week while legal arguments were heard, creates another hurdle in the fledgling marijuana industry that has been beset with delays in getting licensing off the ground amid a glut of marijuana crops that growers can’t find legal sellers to handle.
“It’s been extremely frustrating,” said Aaron Van Camp, owner of Dank 716, the downtown Buffalo dispensary that was one of two to open this summer. His business isn’t directly affected by the court’s decision, but he said it will still hurt an industry dealing with birth pangs, as well as those who have risked a lot financially to establish businesses under provisional licenses.
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“I feel horrible for everyone who can’t open,” Van Camp said. “We know a lot of people who have a lot of money invested, and are going to lose all that money if this program is deemed illegal.”
It’s all part of a stopgap measure from the Office of Cannabis Management designed to help growers offload a pot crop that has been mostly in storage since the fall harvest because not enough stores have opened to give farmers a place to sell it.
The lawsuit, filed by four veterans, argued that a wider group of people beyond those with prior marijuana convictions should have been allowed to participate in the initial round of licenses.
“From the beginning, our fight has always been for equal access to this new and growing industry,” a statement from the veterans said. “We look forward to working with the state and the court to open the program to all eligible applicants.”
Just as easily as you can order a pizza, you can now order legal pot. Delivery will just take a bit longer at first, and you’ll have to prove you’re 21 years of age or older.
The judge granted an exception for licensees who met state requirements before Aug. 7. The judge is also allowing applicants seeking an exemption to make their case in court on an individual basis.
Bryant wrote in his ruling that the financial implications of his decision rest with state regulators who should have been aware of legal problems with the licensing rules.
State regulators in May settled a federal lawsuit that had blocked the issuing of licenses in the Finger Lakes region. That came after a Michigan company said New York State had unconstitutionally favored state residents over those from outside the state.
The Office of Cannabis Management Control Board agreed Wednesday to allow three or more growers to join with a retailer to sell cannabis at temporary, non-storefront locations and during events.
The court decision comes as state authorities have been busy shutting down unlicensed sellers, particularly in New York City, as the legal program stalls.
To help farmers sell their products, regulators in July approved the sale of marijuana at festivals occurring around the state.
Van Camp said Friday’s court decision is another step back for the industry that is dependent on a “healthy ecosystem” that depends on retail dispensaries, cultivators, processors and delivery services.
Dank 716 was the first dispensary to open in Western New York, followed closely by Herbal IQ in Depew. Twenty more dispensaries are expected to be approved in Western New York, though the timeline for that to happen now appears to be pushed back.
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