Second Babylon pot dispensary hits snag

Long Islanders looking forward to a recreational pot market will have to wait at least a bit longer to frequent a second dispensary in the region. 

The state removed Happy Days Dispensary Inc., which plans to open in Babylon, from a list of vendors it wants to exempt from a court injunction. Under the ruling, New York can't give out more provisional retail licenses or issue final approval of them. The pause doesn't impact dispensaries that are now open, including the lone recreational shop on Long Island: Strain Stars in Farmingdale.

Happy Days Dispensary, which aims to open along Route 109, was included on a list of 30 licensees up for exemption before State Supreme Court Justice Kevin Bryant. 

Bryant told the state to refine its list in an Aug. 28 decision, saying officials didn't appear to be following his directions. He had ruled that exemptions would only be granted to firms that "met all requirements for licensing, including but not limited to site plan approval" before Aug. 7. 

Bryant issued the injunction in a case brought by disabled military veterans who allege the state ignored the licensing priority they're entitled to under state law. A coalition that includes big medical marijuana firms has also filed a lawsuit challenging the state's cannabis licensing system. Bryant is presiding over that case, too.

Paul Lepore, a Suffolk resident with a professional background in nutritional supplements, previously told Newsday he was "disheartened" his dispensary, Happy Days, was on hold. The firm was locked into millions in contracts, Lepore said.

About three dozen businesses have licenses to open pot shops on Long Island. Strict zoning regulations have made it hard for most to find storefronts. Legal challenges have also caused delays. 

These initial or "conditional" retail licenses were limited to New York business owners negatively impacted by the criminalization of marijuana. Regulators are scheduled to vote on rules Tuesday that will eventually open the retail sector up to a broader array of businesses.

Bryant has indicated the new regulations could impact the trajectory of the court cases, which are scheduled to resume on Sept. 15.

By Sarina Trangle

sarina.trangle@newsday.comSarinaTrangle

Sarina Trangle covers affordability and cost of living issues and other business topics. She previously worked as an editor and reporter at amNewYork.