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Court Ruling Raises Alarms On NY's Cannabis Licenses
A federal appeals court has thrown a wrench into New York's legalization rollout, ruling that some of the criteria used to award cannabis licenses may be unconstitutional. The decision, issued Tuesday by the Second Circuit Court of Appeals in Manhattan, could have sweeping implications for marijuana markets across the United States.
Since legalizing recreational cannabis in 2021, New York has prioritized granting cannabis licenses to low-income residents with prior marijuana convictions under state law, especially those from neighborhoods heavily targeted by past enforcement. But the court found that excluding applicants with federal or out-of-state convictions could violate the constitutional prohibition on states favoring their own residents over others.
Judge Dennis Jacobs, writing for the 2-1 majority, stated, "Congress has given New York no clear permission to enforce protectionist marijuana licensing laws." The case was brought by two California applicants denied priority for cannabis licenses, despite having cannabis-related convictions in their home state.
While the ruling does not immediately halt licensing, it sends the case back to trial court and challenges the foundation of New York's social equity approach. Cannabis attorney Neil Willner said the decision "struck at the heart" of the state's effort to correct the harms of past policing through its cannabis licenses program.
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