Summary: A group of disabled military veterans has filed a lawsuit against cannabis regulators in New York, alleging that the system of awarding and issuing licenses to certain social equity applicants is in violation of the state constitution.
Veterans’ Lawsuit Threatens New York Cannabis Licensing System
A group of disabled military veterans has filed a lawsuit against cannabis regulators in New York, alleging that the system of awarding and issuing licenses to certain social equity applicants is in violation of the state constitution. The lawsuit, filed in the state Supreme Court in Albany, argues that the Office of Cannabis Management (OCM) overstepped its authority under New York’s 2021 legalization law, the Marijuana Regulation and Taxation Act (MRTA), by opening the licensing application window first to those with marijuana offenses and their immediate family, rather than allowing all applicants to apply at the same time.
The lawsuit further contends that disabled veterans could qualify as social and economic applicants under MRTA and receive certain priorities and benefits in licensing. This lawsuit against the OCM appears to have more potential impact than a similar one filed in March by marijuana multistate operators aiming to gain entry in the state’s developing adult-use cannabis retail market.
If the high court grants the restraining order and preliminary injunction sought by the veterans, regulators will be immediately prohibited from allowing existing CAURD licensees to commence operations. This could be a significant setback to the state’s recreational marijuana program, which is already falling short of market expectations with only 21 retailers licensed and operational.
The veterans’ lawsuit threatens the approval process for all those CAURD applicants and could halt licensing well into 2024. This could spell trouble for the entire New York supply chain, which is already struggling.
[Source: MJBizDaily]
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