News Summary
Empire Cannabis Club has filed dual lawsuits against New York state, aiming to contest proximity regulations limiting licensed cannabis dispensaries near schools. The club claims that existing laws are not being enforced, allowing violations to persist without action from state regulators. In addition, they challenge aggressive raids on unlicensed sellers, asserting these actions infringe upon constitutional rights. The ongoing legal battles highlight tensions in New York’s evolving cannabis market, with a court hearing scheduled soon as the industry grapples with compliance issues.
New York City – Empire Cannabis Club has initiated dual legal actions against the state of New York, with the aim of challenging regulations that govern the proximity of licensed cannabis dispensaries to schools. The club, situated at 172 Allen Street on the Lower East Side, filed a lawsuit in both federal and state courts. The state lawsuit was filed on August 15, while the federal lawsuit was filed shortly after on August 28.
The lawsuits are designed to compel state regulators to shut down 152 adult-use cannabis dispensaries that are currently operating within the legal limit of 500 feet from school property lines. Empire Cannabis Club is also seeking to stop the ongoing crackdown on illicit cannabis sales throughout the state.
Jonathan Elfand, the owner of Empire Cannabis Clubs, contends that the New York Office of Cannabis Management (OCM) and the administration of Governor Kathy Hochul have neglected their responsibility to enforce proximity laws that are meant to protect schools from cannabis sales. Reports state that as of July, the OCM identified 152 dispensaries that violate these proximity regulations, yet no action has been taken to relocate or close these establishments.
In August, Governor Hochul’s administration indicated that it would seek a legislative solution when lawmakers reconvene in January. However, Empire alleges that this lack of enforcement is a case of selective regulation, as the state is turning a blind eye to the proximity violations committed by over 100 licensed dispensaries.
The state lawsuit argues that the OCM has a legal obligation to uphold the Cannabis Law. Empire’s previous attempts to secure judicial support in two separate lawsuits have not succeeded, with one case still under appeal. The current legal strategy includes a request for a temporary restraining order and an injunction directed at the state to enforce the proximity laws governing cannabis retailers.
Empire’s operations are structured around a membership model, which they claim adheres to the 2021 state legislation that legalized recreational cannabis. The business charges no additional markup on cannabis goods sold to its members. Although their physical storefronts are closed for walk-in customers, they continue to operate their online sales and delivery services.
In addition to the state lawsuit, Empire’s federal court filing challenges the legality of raids conducted on unlicensed cannabis sellers by state and city officials. This legal action criticizes the aggressive approach utilized by regulators in shutting down cannabis businesses without proper permits and posits that such actions infringe upon constitutional rights.
The New York attorney general’s office has criticized Empire’s lawsuits, labeling them as “frivolous,” and asserting that Empire’s operations were not sealed due to proximity to schools but rather because they were conducted without proper cannabis licenses. Records indicate that the harm reported by Empire regarding the continued operation of licensed dispensaries is “precisely zero.”
Empire’s attorney plans to argue that their business should remain viable under the existing laws and is seeking damages related to this reliance. The company asserts that the ongoing state efforts to eliminate unlicensed cannabis shops, known as “Operation Padlock to Protect,” which has led to the closure of more than 1,800 unlicensed locations since last summer, has unfairly targeted their operations.
A court hearing for the pending case is scheduled for November 13, as discussions continue regarding a separate lawsuit filed on August 15 by several licensed dispensaries challenging the same proximity regulations. These legal developments underscore the tensions surrounding New York’s evolving cannabis market and the complexities of enforcing compliance with state regulations.
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Additional Resources
- Crain’s New York: Empire Cannabis Clubs Sues State Over Raids
- Wikipedia: Cannabis in New York
- The New York Times: Unlicensed Cannabis Dispensaries in NYC
- Google Search: New York cannabis regulations
- Bloomberg: NYPD Raids Unlicensed Marijuana Dispensaries
- Google Scholar: cannabis law New York
- Syracuse.com: After Crackdown on Empire Cannabis Clubs
- Encyclopedia Britannica: cannabis
- New York Post: Unlicensed Cannabis Dispensaries in Manhattan
- Google News: Empire Cannabis Clubs
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