The complaint claims New York is violating federal law by disbursing funds into activity that remains illegal at the federal level.
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Two organizations and eight individuals have filed a lawsuit in Albany County seeking a permanent injunction on New York putting state funds toward dispensaries.
Tabner, Ryan & Keniry is representing the Cannabis Impact Prevention Coalition, Cannabis Industry Victims Seeking Justice and the taxpayer plaintiffs in their Supreme Court case filed on Monday.
“We are not aware of any business or industry receiving this kind of preferential state funding, especially one that sells addiction for profit,” said David G. Evans, a spokesperson for Cannabis Industry Victims Seeking Justice. “The cannabis of today is very high in potency and causes mental illness, addiction and a host of other social and medical conditions. Many young people are becoming mentally ill from high potency marihuana/cannabis.”
After legalizing marijuana in 2021, New York authorized a cannabis investment fund by statute in 2022, allowing the state to put money toward opening adult-use retail cannabis dispensaries. Sales of cannabis products are taxed at 9%, a tax that goes into the state’s cannabis revenue fund, which is then used to reimburse the state for money it put toward the cannabis industry previously.
The complaint claims New York is violating federal law by disbursing funds into activity that remains illegal at the federal level and provides that landlords who work with the state agencies to lease a dispensary location may also be liable.
Named as defendants in the case are the boards and officials affiliated with the state’s Office of Cannabis Management, as well as against New York’s acting tax commissioner, the New York Social Equity Cannabis Investment Fund, Dormitory Authority of the State of New York and Social Equity Servicing Corp.
A spokesperson for the Office of Cannabis Management did not immediately respond for comment.
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