The ruling threatens to further slow the state’s rocky rollout of legal weed.
A ruling by a state judge in Albany could set back thousands of cannabis entrepreneurs who are either vying for a business license in New York or who already received one and are trying to set up a dispensary.
In a ruling on Thursday, the judge said that the office violated the provisions of the state cannabis law by waiving a requirement that businesses identify a location and notify the relevant municipality prior to submitting their applications. The lawsuit was brought by four cannabis businesses that secured real estate before applying for licenses but are still waiting to find out if they will be approved. If they’re successful, the suit could thin out potential competition.
As part of their efforts to promote social equity in the cannabis industry, state officials early on in the licensing process gave priority to people who had prior cannabis convictions, as well as their family members, without requiring them to have a location in hand. While the state was initially supposed to secure and build out real estate for these applicants, the process proved slow and costly. The state eventually allowed people to find their own storefronts.
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