A federal court on Tuesday lifted an injunction that prevented state regulators from issuing licenses for cannabis sales in multiple regions of New York state.
The move will enable the Office of Cannabis Management to issue licenses for businesses in Central New York, Western New York, Mid-Hudson and Brooklyn as the court continues to hear the case.
An injunction on cannabis licenses in the Finger Lakes region remains.
A federal court in November sided with a company that challenged provisions of New York’s cannabis law that required licenses for all retail dispensaries be awarded to people who have been affected by prior drug enforcement measures in New York.
State officials in recent weeks have signaled plans to change New York’s legal cannabis marketplace amid efforts to boost growth.
State regulators announced they would double the number of licenses being offered. At the state Capitol, lawmakers are considering whether to change how cannabis is taxed as well as how to tackle the sale illegal cannabis in the state.
Rochester-area officials were disappointed the ruling did not affect the Finger Lakes area.
“While we celebrate the decision of the Second Circuit to lift the injunction for Western New York, Hudson Valley, and Brooklyn, we remain hopeful the Finger Lakes Region will soon be permitted to participate in this economic empowerment program administered by the NYS Office of Cannabis Management,” said Sen. Jeremy Cooney. “Importantly, New York will not reach its goals for an equitable and thriving adult-use cannabis marketplace until all regions are open for business.”
