On May 9, 2024, multiple adult-use cannabis retail dispensary license applicants (“Petitioners”) filed a lawsuit against the New York State Cannabis Control Board and the New York State Office of Cannabis Management (collectively, the “NYS Cannabis Agency”), challenging the legality of the Conditional Adult Use Retail Dispensary Program (“CAURD”).
The Petitioners argue that the CAURD program exceeds the statutory authority granted to the NYS Cannabis Agency under the Marihuana Regulation and Taxation Act (“MRTA”) by improperly waiving the requirements (i) to identify the dispensary location and (ii) notify the relevant municipality of the proposed location for CAURD applicants.
Petitioners contend that this waiver of clear MRTA requirements is arbitrary and capricious and, therefore, improper and unfair, as non-CAURD applicants must fully comply with these requirements. Petitioners further assert that there is an imminent threat of their applications being retroactively revoked or denied if CAURD applicants are not required to disclose their proposed locations. Such as waiver could ultimately lead to situations where a CAURD applicant, granted a license first, is later found to be in close proximity to a non-CAURD applicant’s proposed location, making the latter’s application invalid under New York State law.
As a result, Petitioners claim that the CAURD program places non-CAURD applicants at a significant and unfair disadvantage. They seek an immediate court order enjoining the NYS Cannabis Agency from awarding any license that does not fully comply with MRTA requirements. Currently, the presiding court is awaiting the NYS Cannabis Agency’s response before rendering a decision on the matter.
The Wagoner Firm is closely monitoring lawsuit and will provide updates as it progresses. In the meantime, we are available to discuss any questions or concerns you may have regarding this lawsuit, compliance issues, or other cannabis-related issues.
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