Judge rejects claim that New York’s marijuana licensing deceives out-of-state applicants

ALBANY, N.Y. (AP) — A federal judge has rejected a challenge to New York state’s licensing program to sell legal marijuana, two California applicants say, arguing the system is unconstitutional against out-of-state residents. Discriminates against.

The ruling Friday by Albany Judge Anne M. Nardacki could prompt New York to issue hundreds of licenses in the state that has the most marijuana. Sold by unlicensed businesses,

Nardacki said the public interest in letting properly licensed businesses take over the market in New York outweighs the concerns raised by the lawsuit.

He said the main purpose of the Dormant Commerce Clause, which the plaintiffs argued, was to allow them access to the New York market, which does not apply to the federally illegal cannabis trade. The clause is believed to prevent states from taking protectionist measures to restrict interstate commerce in the absence of congressional regulation.

The two companies controlled by Los Angeles residents sought a temporary restraining order and preliminary injunction in their lawsuit in mid-December. Their goal was to halt the state’s licensing process while the lawsuit proceeded.

Nardacci rejected the requests in a written decision, saying the injunction would allow the illegal store operators who now control the market to delay the rollout of safe, regulated licenses to sell cannabis products.

Lawyers for both sides did not immediately respond to requests for comment Sunday.

State attorneys had argued that more than 1,000 retail storefronts were expected to be licensed this year and said the state’s application process allows out-of-state residents to prove they can operate in a manner inconsistent with cannabis prohibition. Live in an area affected by.

A program launched in October was designed so that many of New York’s first licenses would be awarded to individuals with drug convictions, to give those damaged by the war on drugs a chance to succeed before competitors arrived. Could.

The move was expected to increase the number of legal dispensaries in a market now dominated by black market sellers who open unlicensed retail stores.

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