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New York state was cleared Tuesday to issue cannabis licenses in all but one region of the state as a federal judge ended an injunction for the Central New York, Western New York and Mid-Hudson regions, as well as Brooklyn.
The injunction will remain for now on the Finger Lakes region, according to a ruling by the Second Circuit Court of Appeals.
Gov. Kathy Hochul said she was pleased that the federal court limited the injunction in a move that will allow the state “to open safe, regulated cannabis dispensaries.”
In November, Variscite NY One and its Michigan-based owner, Kenneth Gay, won an injunction against New York after accusing the state of violating rules regarding the so-called dormant Commerce Clause, which protects interstate commerce.
Also read: Federal judge shuts down New York State cannabis license rollout in some regions
The legal action came after New York state said it would award the first cannabis licenses to in-state residents who have been affected by the war on drugs.
New York state has been issuing licenses in regions not covered by the lawsuit, including to Good Grades, based in Jamaica, Queens, which is the first woman-owned dispensary in the state. It is operated by entrepreneur Extasy James and her cousin Michael James Jr.
While New York continues to develop regulations for its cannabis market, it’s been awarding licenses under its conditional adult-use retail dispensary (CAURD) program.
The state has been slow to issue licenses even as thousands of unlicensed cannabis shops have popped up around the state.
Along with the federal injunction, New York also faces a lawsuit from a group of licensed medical-cannabis operators for failing to open licensing to all applicants at the same time.
Multistate operators with exposure to New York include Curaleaf Holdings Inc.
CURLF,
Green Thumb Industries Inc.
GTBIF,
MedMen Enterprises Inc.
MMNFF,
and Etain, which has been acquired by RIV Capital Inc.
RIV,
CNPOF,
a cannabis investment company backed by Scotts Miracle-Gro Co.
SMG,
Also read: Federal judge shuts down New York state cannabis license rollout in some regions
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