New York judge approves opening of two cannabis retailers

A New York judge recently issued a court order allowing only two cannabis retailers to open their stores while putting hundreds of others on hold.

On October 6, Judge Kevin Bryant allowed Manhattan-based ConBud LLC and Queens-based Kush Culture LLC (also known as Terp Bros.) to be exempt from the current ban on cannabis business operations.

Bryant first issued the injunction in August, blocking cannabis retail licenses from opening. Currently, more than 400 conditional adult-use retail dispensary licenses are on hold and the Office of Cannabis Management (OCM) is not issuing any additional licenses. There are only 23 cannabis companies operating across the state.

“While today’s ruling is a disappointment, we are committed to working with the Cannabis Control Board to find a path forward that does not derail our efforts to create the most equitable cannabis market in the country,” the OCM said in a response to Bryan’s decision.

Bryant said any licensees ready to open as early as Aug. 7 could apply for an exemption from his injunction. In response, the OCM sent a list of 30 retailers willing to open and apply for a waiver, although Bryant disagreed that most of them were actually ready. ConBud and Kush Culture are the only approved licensees so far.

According to attorney Jorge Vasquez, who represents both ConBud and Kush Culture, there is a light at the end of the tunnel regarding the injunction. “We are definitely happy with the decision,” Vasquez said. “It is certainly a step in the right direction for the CAURD program and CAURD licensees, and we hope these two are just the first of more to come.”

Vasquez added that there is no specific date for the two stores to open, but with Bryant’s approval, it could be as early as tomorrow.

According to a statement from attorney Wei Hu obtained by Green Market Report, he expressed excitement that Bryant had approved two licensees so far and expects that 14 additional exemptions may be announced in the near future. “With pending applications, there is no basis for the injunction against a CAURD interim licensee to remain in place… There is no basis for this litigation to continue to impose unprecedented pain on hundreds of families,” Hu said. “Nevertheless, I am thrilled that my clients Jeremy Rivera and Alessandro Cottone can resume their commitment to providing the Astoria Queens community with access to licensed cannabis and the dozens of living wage jobs that come with it.”

Kush Culture/Terp Bros also told Green Market Report that they are one of the few affected by the exemption so far. “We are excited. We’re going to try to move forward as quickly as we can,” Jeremy Rivera said of Terp Bros. “It’s been long enough. We have held off for almost two months since the injunction began in August. Now it’s about training the staff and introducing the inventory.”

Another lawyer representing the CAURD licensees, Duncan Delano, added that while the situation is hopeful, it is not entirely reassuring at the moment. “If you’re not one of those two [licensees], you’re still pretty frustrated. I have a lot of customers in this boat. But it is hopeful, and I present that to my clients as a sign of hope.”

A group of four military veterans also filed a lawsuit against New York state in August because the first approved licenses were given to people with cannabis convictions, and no disabled veterans or members of minority groups received a license. “The MRTA had already set a goal of awarding 50% of all adult-use licenses to social and economic equity applicants. But rather than abide by the law, OCM and CCB created their own version of “social justice,” determining for themselves which individuals would have priority in entering New York’s emerging adult-use cannabis market,” a joint statement said on behalf of them of veterans.

In September, regulators approved new rules to open license applications to social equity applicants (which include veterans, minority- and women-owned businesses, and struggling farmers) starting Oct. 4. “It’s about time,” said Carmine Fiore, one of the veterans in the case. “We finally have a level playing field. We are finally being prioritized – as we should have been under the law.”

Delano said such cases could lead to more lawsuits in the future. “It’s part of a strategy that continues to work: playing hard and keeping OCM on the defensive,” he said.

While the situation in New York’s cannabis industry remains turbulent for now, the city of Rochester is preparing for the influx of cannabis jobs. In late September, the Rochester Public Library announced a five-week cannabis certification program to prepare city residents for new careers in the cannabis field. “As we prepare to operate legal cannabis dispensaries in our region, it is important to ensure we have a pool of qualified employees ready to work in these businesses as they open,” said Rochester Mayor Malik D .Evans. “The City of Rochester places great emphasis on our processes to ensure cannabis businesses thrive in our city, particularly for Black and brown people who have been most impacted by the War on Drugs.