A federal judge on Friday blocked an effort to block New York’s marijuana license after Gov. Kathy Hochul recently called the development of the state’s legal marijuana market a “disaster.”
Judge Ann Nardacci, a judge in the Northern District of New York appointed by President Biden, has argued in a lawsuit by two entrepreneurs that New York’s licensing rules violate the U.S. Constitution and unfairly discriminate against out-of-state residents. rejected the claim. According to Politico. Several states’ recreational marijuana programs are being challenged in federal court under the Dormant Commerce Clause, a constitutional doctrine that prevents states from passing laws that would unduly burden interstate commerce.
The judge cited the large investments thousands of cannabis entrepreneurs have made in their quest to obtain business licenses in New York, and said further harm would be caused by hampering the development of the state’s adult-use market. He said that it means that.
“The balance of equity is tilted in favor of the defendants,” Nardacci wrote. “Defendants have illustrated the significant harm that the injunction sought by Plaintiffs would cause to New York’s adult-use cannabis industry.”
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On the left, a bus stop with a sign promoting Cannabis.ny.gov, which legalizes marijuana in Queens, New York. Right, symbol of a legally licensed cannabis dispensary in New York City in the store window. It has a QR code that is used as a pharmacy authentication. (Getty Images)
The Marijuana Regulation and Taxation Act, signed into law on March 31, 2021, legalized marijuana or recreational marijuana for adults 21 and older in New York State and prompted the removal or expungement of approximately 400,000 marijuana plants. related arrests and convictions;
New York residency is not required for the state’s cannabis market, but license applicants are given “special preference” if they have a prior marijuana conviction in New York state or meet other criteria. may be given. In Mr. Nardacci’s previous case, plaintiffs said the provision created an unfair advantage for New York residents.
According to Politico, thousands of illegal marijuana stores operate without licenses in New York. Meanwhile, he has fewer than 60 licensed pharmacies in operation.

On June 16, 2023, in New York City, a smoking shop displays marijuana leaves on its windows as authorities step up crackdowns on unlicensed smoking establishments. (Spencer Pratt/Getty Images)
In an interview with the Buffalo News Editorial Board last week, Hochul, a Democrat, criticized the state’s development of the legal marijuana market.
“This is a disaster,” said Hochul, who took over the state’s marijuana legalization laws when he took over from Gov. Andrew Cuomo in August 2021. “I don’t defend that for a second.”
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“We have to go back to the very beginning. Before my time, bills were written in a way that was not set up for success,” Hochul said, noting that the law had no “teeth” at all. Ta.

CBD Kratom Cannabis Dispensary, West 14th Street, New York City, New York. (Plexi Images/Glasshouse Images/UCG/Universal Images Group via Getty Images)
The governor said last week that he expects 400 retail and grower licenses to be reviewed by the Department of Cannabis Control’s Cannabis Control Board.
But the board was ultimately ready to approve just three new retail locations. That slow pace has allowed unlicensed sellers to freely and openly peddle marijuana without paying taxes to the state and with little fear of consequences, according to the Buffalo News.
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“It’s not happening on every street corner,” Hochul said of unlicensed marijuana sales in New York City. “It’s in every other store. It’s insane.”



