NEW YORK — This summer, Western New York opened its first state-licensed dispensaries in Buffalo and Depew. A recent Albany County Supreme Court decision could make it a while before a third joins the list.
The judge has halted the awarding and processing of all state cannabis licenses with a temporary restraining order. Though dispensaries currently in business will not be impacted, those in the process of opening will be forced to temporarily cease operations.
The lawsuit was filed by a New York City-based law firm on behalf of four disabled veterans, suing both the Cannabis Control Board and the state's Office of Cannabis Management. They argue that these organizations have been wrongfully prioritizing license applicants with previous drug convictions and neglecting minority groups, a violation of state law. The lawsuit specifically refers to the state's 'Marijuana Regulation and Taxation Act' which requires the Cannabis Control Board to "open licenses to all adult-use retail dispensary applications at the same time."
Though the scheduled hearing for the case guarantees the restraining order remain in effect through Friday, it is unclear how long it could beyond that. Currently, 463 licenses have been issued in New York State, yet only a few have opened for business. Aleece Burgio, a lawyer at Colligan Law, believes this order could significantly delay that process further.
"At our firm, we're representing CAURD license holders and we're very nervous about this because you're putting these people at a massive disadvantage who have already put all this money into going into these stores, and now they have to completely halt," Burgio said.
Burgio believes that the best way to mitigate this situation is for the Office of Cannabis Management to open licenses to everyone.
"We're worried about another injunction because at this point it's them reviewing them to see if it does violate the law. But either way, we don't want CAURD to stop," she added.
This recent decision makes it the second time that CAURD licenses has been put on hold. Back in November 2022, Michigan-based company Variscite filed a lawsuit that did the same, alleging discrimination in the state's application process. That case has since been settled.
A spokesperson for the Office of Cannabis Management told 2 On Your Side that they will be notifying license holders of the pause. For now, the court hearing providing an update on the status of the restraining order will take place Friday.