Federal judge shuts down New York State cannabis license rol lout in some regions
Analyst says action by federal judge in Albany could 'severely impact' the rollout of licenses in the Empire State An injunction granted by a federal judge in response to a lawsuit against the New York State Office of Cannabis Management threatens to severely impact the full launch of the state's cannabis licensing program, an analyst said Monday. Jefferies analyst Owen Bennett flagged a threat from a suit by Variscite NY One and its Michigan-based owner Kenneth Gay. The suit accuses New York State's plan to award the first 150 licenses to business applications to in-state residents impacted by the War on Drugs breaches the state's constitution's dormant commerce clause that protects interstate commerce. Also Read:New York State's Office of Cannabis Management has been planning for a full launch of the program by the end of the year. Also Read: New York poised to award first retail cannabis licenses to drug war casualties instead of big incumbents U.S. District Court Judge Gary Sharpe on Thursday temporarily blocked the state from issuing about 63 of the 150 licenses in Brooklyn and parts of update New York cited in the Variscite NY One lawsuit. Sharpe's ruling said New York's application structure "will have a discriminatory effect on out-of-state residents," according to a report by the Associated Press. Jefferies analyst Bennett said some of the first licenses from New York were expected to be issued by Nov. 21.