ALBANY, N.Y. (NEXSTAR) — A federal appeals court ruled that a part of New York's cannabis licensing program illegally favors local businesses over those from other states. The decision—handed down on August 12 by the U.S. Court of Appeals for the Second Circuit and available to read at the bottom of this story—found that the state's "extra priority" system for certain applicants is unconstitutional.

New York's cannabis law—the Marihuana Regulation and Taxation Act, passed in 2021—created a two-tier application process. One part of the process, the "December Pool," was for applicants seeking a "provisional" license. To get "extra priority" for this license, applicants had to meet conditions like having a marijuana-related conviction under New York law before March 31, 2021.

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