It has been two and a half years since recreational marijuana was legalized in the state of New York, yet the retail program is facing numerous challenges and is now in legal jeopardy. We can’t help but wonder, somewhat humorously, what state officials responsible for establishing the industry are thinking. Selling marijuana is a complex endeavor, as evident from the involvement of foreign cartel lords, domestic growers, street dealers, and even students of various educational levels who have profited from this illicit trade. However, what was once an opportunity for organized and disorganized crime to make easy money has now become a bureaucratic mess in the hands of the state of New York.
Recently, the licensing of marijuana stores was halted due to a court injunction. The injunction was a result of a legal challenge to the state’s program brought forth by four service-disabled veterans. These veterans claim that the state violated its own laws, which were designed to give preference to “social equity” applicants such as individuals with prior marijuana convictions, minority- and women-owned businesses, and disabled military veterans. Instead, the state prioritized those with prior convictions over others. State Supreme Court Justice Kevin R. Bryant, in his ruling to continue the injunction, stated that the law clearly indicates that all social equity applicants should be treated equally. He described the licensing program as being “in legal jeopardy.”
The impact of this setback on New York’s ambition to establish a thriving retail marijuana industry remains uncertain. The state Office of Cannabis Management had planned to open the licensing application process to all parties on October 4th. However, if the legal case is still ongoing at that time or if the state loses, it is unclear how existing licenses will be affected. Furthermore, if the current social equity application process is deemed illegal, the state may need to delay broader licensing until the program’s social equity aspect is fixed and properly implemented.
The confusion and delay caused by these legal issues do not only affect potential retailers. Growers are facing the challenge of having only a minimal market to sell their product to, resulting in a surplus of approximately 300,000 pounds of marijuana this year. To mitigate this issue, the state has allowed growers to sell their surplus at fairs, festivals, concerts, and other venues. Additionally, municipalities that are trying to plan for these new businesses are left in the dark, unsure of when they can expect them to open. Commercial property owners who have signed leases with marijuana stores are also in a state of uncertainty, as they do not know if their tenants will be able to make their rent payments.
Even individuals who were informed that they could grow marijuana at home 18 months after the first retail sale are unsure if that timeline is still valid, given the potential illegality of the program under which the initial sale occurred. It has been nearly two and a half years since then-Governor Andrew M. Cuomo signed the Marijuana Regulation & Taxation Act, and it is evident that there are flaws in either the law itself or its implementation.
The administration of Governor Kathy Hochul and the Legislature should not wait for this case, and others like it, to reach a resolution. The warning signs are already there, indicating that the state may lose this battle. It is imperative that they prepare for the worst-case scenario and take action to fix the law and the program immediately, rather than waiting for a court order to do so.
Please note that the views expressed in this editorial are representative of the Times Union’s editorial board, consisting of George Hearst, publisher; Casey Seiler, editor; Akum Norder, senior editor for opinion; Jay Jochnowitz, editor at large; Tena Tyler, senior editor for engagement; and Chris Churchill, columnist and editorial writer. While the Times Union’s news coverage informs the editorials, the board’s opinions do not influence that coverage.
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