New York Supreme Court Judge Strikes Down Some Cannabis Regulations, Unsettling Industry Stakeholders
Albany County Supreme Court Judge Strikes Down Portion of New York's Adult-Use Cannabis Regulations.
In an odd turn of events, an Albany County Supreme Court judge struck down some, not all as previously thought, of New York’s adult-use cannabis regulations. The ruling, which deemed the regulations arbitrary and unconstitutional, was viewed as a challenge to NY’s Office of Cannabis Management (OCM).
What Happened: Judge Kevin Bryant‘s ruling stemmed from a lawsuit initiated by a coalition including Leafly Holdings, Stage One Dispensary and an informed cannabis consumer. Leafly argued in the suit that the NY Cannabis Control Board’s rules unfairly prevented dispensaries from advertising on its platform and sought to invalidate those particular restrictions. The judge voided the rules dealing only with so-called third-party platforms.
Temporary Panic
Though the legal challenge targeted regulations restricting third-party marketing, the ruling invalidated portions of the OCM’s regulatory framework, encompassing segments of the adult-use market. This is what caused an uproar among the state’s cannabis stakeholders until it was made clear that a key portion of the order turned out to be a mistake. A Wednesday ruling was amended on Thursday to reflect a much narrower decision after cannabis growers, sellers and other supporters voiced concerns about the implications.
Already On Shaky Ground
Questions have loomed over the future of the New York cannabis industry since the very beginning. The judge’s decision, though not as serious as initially thought, cast new skepticism on New York’s struggling cannabis regulatory bodies. The state’s troubled rollout, slow licensing process, a laundry list of legal challenges and the proliferation of thousands of illicit weed shops have all combined to obstruct what was hoped to be a multi-million-dollar cannabis market. A recent idea to put an end to the latter was suggested this week in a bill that shops caught possessing or selling illicit weed would be stripped of their licenses to sell cigarettes, alcohol and lottery tickets.
So, in the end…Thursday’s ruckus was another bump in the winding road toward alleviating the cannabis chaos that holds New York in its grip. Keep your seatbelt on, the ride is not nearly over.
