{"id":2474826,"date":"2025-08-14T17:05:01","date_gmt":"2025-08-14T21:05:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-court-tosses-out-part-of-nys-pot-licensing-regulations-washington-examiner\/"},"modified":"2025-08-14T17:07:19","modified_gmt":"2025-08-14T21:07:19","slug":"federal-court-tosses-out-part-of-nys-pot-licensing-regulations-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-court-tosses-out-part-of-nys-pot-licensing-regulations-washington-examiner\/","title":{"rendered":"Federal court tosses out part of NY\u2019s pot licensing regulations &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffederal-court-tosses-out-part-of-nys-pot-licensing-regulations-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2474826&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/second-amendment-activists-prevail-in-federal-court\/\" title=\"Second Amendment Activists Prevail in ... ...\u00a0\">federal appeals court ruled<\/a> that a provision of New York&#8217;s <a href=\"https:\/\/amzn.to\/3YuVZYV\" >cannabis law giving licensing priority<\/a> to in-state applicants is unconstitutional. The court found that the state&#8217;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/one-year-after-george-floyd-americas-biggest-corporations-earmark-37-billion-for-racial-equity\/\" title=\"One Year After George Floyd, America\u2019s Biggest Corporations Earmark  Billion For \u2018Racial Equity\u2019\">social equity program<\/a>, which favors New York residents over out-of-state applicants-particularly excluding those with federal or out-of-state marijuana convictions-likely violates the dormant Commerce Clause, which prohibits states from enacting protectionist laws that disadvantage out-of-state businesses. This decision arose from a lawsuit by Variscite NY,a california company,which argued that its workers where unfairly denied priority status in New York&#8217;s licensing lottery. The ruling sends the case back to a lower court for further proceedings.While New York officials argued the law was meant to promote restorative justice rather than economic protectionism,the court majority stated the state failed to prove that no less discriminatory alternatives existed. This decision marks another setback for New York&#8217;s recreational cannabis program, which has faced multiple legal and regulatory challenges.  <\/p>\n<div id=\"ld-4686-3758\"><\/div>\n<p><script>(function(w,d,s,i){w.ldAdInit=w.ldAdInit||[];w.ldAdInit.push({slot:14832835450050406,size:[0, 0],id:\"ld-4686-3758\"});if(!d.getElementById(i)){var j=d.createElement(s),p=d.getElementsByTagName(s)[0];j.async=true;j.src=\"https:\/\/cdn2.decide.dev\/_js\/ajs.js\";j.id=i;p.parentNode.insertBefore(j,p);}})(window,document,\"script\",\"ld-ajs\");<\/script><\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Federal court tosses out part of NY&rsquo;s pot licensing regulations<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2204315\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>(The Center Square) &mdash; A provision of <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/new-york\/\" target=\"_blank\" rel=\"noopener\" title=\"\">New York&rsquo;s<\/a> cannabis law that gives priority for <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/marijuana\/\" target=\"_blank\" rel=\"noopener\" title=\"\">pot<\/a> licenses to in-state applicants is unconstitutional, a <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/federal-courts\/\" target=\"_blank\" rel=\"noopener\" title=\"\">federal appeals court<\/a> has ruled.<\/p>\n<p>The U.S. Court of Appeals 2nd Division ruled on Wednesday that a portion of the state&rsquo;s social equity program, which excludes individuals with federal or out-of-state pot convictions from receiving priority, likely violates the dormant Commerce Clause by favoring New York residents over those from other states. The&nbsp;dormant clause prevents states from passing laws unfairly, giving their businesses an edge over out-of-state companies.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/state\/3500201\/gavin-newsom-ted-cruz-trade-barbs-over-redistricting\/\">Cruz and Newsom trade barbs over redistricting<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/3500351\/trump-putin-rare-earth-minerals-deal-peace-ukraine-alaska-meeting\/\">Trump dodges questions on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-previews-zelensky-visit-on-pending-deal-for-ukraines-minerals-washington-examiner\/\" title=\"Trump previews Zelensky visit on pending deal for Ukraine&#039;s minerals ... Washington Examiner\">rare earth minerals deal<\/a> for Putin&#8217;s peace<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/justice\/3500190\/judge-drops-charges-henry-cuellar-bribery-trial-2026\/\">Judge drops two charges against Cuellar, pushes bribery trial to 2026<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>&ldquo;Congress has given New York no clear permission to enforce protectionist marijuana licensing laws &hellip; and New York&rsquo;s prioritization of applicants with convictions under New York law is a protectionist measure that cannot stand,&rdquo; the three-judge panel&rsquo;s majority wrote in the 63-page ruling.&nbsp;<\/p>\n<p>The ruling stems from a lawsuit filed by Variscite NY, a California-based company, which said its&nbsp;out-of-state workers with previous criminal&nbsp;convictions were unfairly denied &ldquo;extra priority&rdquo; status in New York&rsquo;s pot licensing lottery.&nbsp;<\/p>\n<p>The appeals court ruling sends the case back to the U.S. District Court for the Northern District of New York, which had denied the plaintiffs&rsquo; request for an injunction.&nbsp;<\/p>\n<p>In a dissenting opinion,&nbsp;Chief Judge Debra Ann Livingston sided with the lower court&rsquo;s argument&nbsp;that the Commerce Clause shouldn&rsquo;t apply to the marijuana market because the&nbsp;drug is still illegal&nbsp;under federal law. She said using the clause to New York&rsquo;s social equity licensing regulations undermines Congress and the federal government that wants to &ldquo;eradicate&rdquo; the cannabis market.<\/p>\n<p>Lawyers for New York&rsquo;s Cannabis Control Board and Office of Cannabis Management argued that the licensing scheme doesn&rsquo;t violate the dormant Commerce Clause because its goal was restorative justice, not economic protectionism. But the court&rsquo;s majority said the state &ldquo;failed to prove that the discriminatory policy was the only way to achieve that goal.&rdquo;<\/p>\n<p>The ruling is yet another blow to New York&rsquo;s recreational cannabis program, which lawsuits and other delays have plagued. In June, the state Office of Cannabis Management notified 152 dispensaries that because of an &ldquo;error&rdquo; by regulators in calculating the&nbsp;distance from their property lines to schools or houses of worship, they violate state law and face closure or relocation.&nbsp;<\/p>\n<p><strong><a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/3499912\/mamdani-cuomo-campaigns-trump-nyc-mayor-election\/\" target=\"_blank\" rel=\"noopener\" title=\"\">MAMDANI AND CUOMO CAMPAIGNS SAY CANDIDATES WOULD COLLABORATE WITH WHITE HOUSE IF ELECTED<\/a><\/strong><\/p>\n<p>Gov. Kathy Hochul and legislative leaders have since indicated they intend to update the law to allow the cannabis businesses to continue operating.&nbsp;<\/p>\n<p>To date, at least 24 states, the District of Columbia and the U.S. territory of Guam have legalized recreational marijuana, to the National Conference of State Legislatures. Thirty-eight states have medical marijuana programs.<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_2204315\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"2204315\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Federal court rules NY&#8217;s pot license priority unconstitutional<\/p>\n","protected":false},"author":1,"featured_media":2474827,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/08\/new-york-pot-shop.webp","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[61293,38298,33211,61292,32076],"class_list":["post-2474826","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-cannabis-regulations","tag-federal-court","tag-legal-news","tag-ny-pot-licensing","tag-washington-examiner"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/08\/new-york-pot-shop.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2474826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2474826"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2474826\/revisions"}],"predecessor-version":[{"id":2474830,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2474826\/revisions\/2474830"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2474827"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2474826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2474826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2474826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}