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New York cannabis regulations invalidated by state judge
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New York cannabis regulations invalidated by state judge
Apr 4, 2024 3:49 PM

April 4 (Reuters) - A New York state judge has

invalidated most of the state's cannabis regulations in a case

that challenged marijuana advertising rules.

New York Supreme Court Justice Kevin Bryant said in an order

on Wednesday that the state had not justified its rulemaking

process in a raft of regulations put forward by the New York

Office of Cannabis Management governing licensing, business

operations and marketing of cannabis.

The judge in Albany criticized the Office of Cannabis

Management and the New York Cannabis Control Board's response to

the lawsuit filed by cannabis website Leafly Holdings ( LFLY ),

saying they presented no evidence or justification to explain

how the regulations were developed.

Leafly ( LFLY ) had sued over a rule that barred dispensaries from

advertising on third-party platforms.

"There is no indication that any evidence was actually

placed before the administrative agency and there is no outline

of the process that the agency followed when deliberating

regarding the proposed regulations," the judge wrote.

A spokesperson for the New York Attorney General's office,

which defended the regulations in court, directed questions

about the ruling to the state Office of Cannabis Management. The

Office of Cannabis Management did not immediately respond to a

request for comment.

Leafly ( LFLY ) in a statement said it is important that licensed

operators have access to advertising tools to help them succeed

and that the company hopes the ruling "ultimately leads to a

healthy, stable adult-use market in the state."

Jonathan Havens, a cannabis attorney in New York at law firm

Saul Ewing who is not involved in the lawsuit, said if the

ruling stands as is, it will have a significant and broad impact

on the New York cannabis industry.

"It didn't strike down the entire program, but I find it

challenging to understand how there can be a fully functioning

program if this isn't immediately addressed," Havens said.

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