New York judge blocks retail marijuana licensing, setting major setback to state's fledgling program

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New York judge blocks retail marijuana licensing, setting major setback to state's fledgling program
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The ruling blocks New York from processing or issuing marijuana dispensary licenses.

A New York judge blocked the state's retail marijuana licensing program on Friday, dealing a devastating blow to the fledgling marketplace.A New York judge blocked the state's retail marijuana licensing program on Friday, dealing a devastating blow to the fledgling marketplace after a group of veterans sued over rules that allowed people with drug convictions to open the first dispensaries.

The veterans' lawsuit argues that state marijuana regulators improperly limited the initial round of licenses to people with prior marijuana convictions, rather than a wider group of so-called social equity applicants included in the original law. The judge last week temporarily blocked the state's program as legal arguments in the case played out, with Friday's order extending the shut down.

Lawyers for the state have warned the judge that any halting of the licensing program would financially harm those who have already begun spending money to establish businesses under provisional licenses. The state Office of Cannabis Management did not immediately have a comment on the order Friday.

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