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Group of licensed medical cannabis operators file suit against New York regulator

Group of licensed medical cannabis operators file suit against New York regulator for failing to open licensing to all applicants at the same time

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A coalition of licensed medical cannabis operators has filed a lawsuit against the New York cannabis regulator, alleging it overstepped its authority and subverted the intent of the state legislature by failing to comply with provisions of the 2021 Marihuana Regulation and Taxation Act, or MRTA.

The Cannabis Control Board and Office of Cannabis Management “established policies that undermine the MRTA’s laudable social equity goals and hinder licensed operators from entering the market. These policies have delayed the availability of safe, regulated cannabis products for medical patients and adult-use consumers in New York State,” the Coalition for Access to Regulated & Safe Cannabis said in a statement.

The group argues that the MRTA required that the OCM And CCB open the initial adult-use retail dispensary license application period to all candidates at the same time.

But instead, they created a program called the Conditional Adult-Use Retail Dispensary (CAURD) program that effectively created a new license class and allowed that group access before others. The CAURD program was announced last March with the intention of granting the first licenses to individuals who had prior cannabis-related convictions that occurred in New York state. But some applicants have challenged the program arguing it conflicts with the US Dormant Commerce Clause, which blocks states from discriminating against interstate commerce.


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