Happy Friday! The theme for our latest edition of the Cannabis Curator is lawsuits – and lots of them! Most prominent and potentially detrimental to the NY Cannabis Industry at large is the injunction against CAURD licensing which was upheld today by Judge Kevin Bryant. This injunction (commonly referred to as the Fiore lawsuit) is described below, though the central contention is that the CAURD program unfairly sidelines certain social equity groups in favor of justice-impacted individuals (and that CAURD was never authorized under MRTA to begin with). With that, let’s dive in:
New York Cannabis CAURD Licensing Halted: Court Injunction
August 18th, 2023
Brief Summary: On August 7, 2023, the New York Supreme Court, led by Judge Kevin Bryant, initiated an injunction preventing the Cannabis Control Board and the Office of Cannabis Management from issuing or processing new Conditional Adult-Use Retail Dispensary (CAURD) licenses. Stemming from a lawsuit by service-disabled veterans, which was later joined by the Coalition for Access to Regulated & Safe Cannabis, the injunction challenges the CAURD program’s restrictive eligibility criteria and constitutionality. The plaintiffs allege it violates both the U.S. Dormant Commerce Clause and New York’s MRTA. While dispensaries approved before the 8/7 injunction’s initiation can operate under the injunction, others are less fortunate and see this as having a once-in-a-lifetime opportunity snatched away. A pivotal hearing is scheduled for August 25th.
Hemp Product Companies vs. Cannabis Control Board
Aug. 10, 2023
Brief Summary: A collective of hemp product companies, prominently featuring Cycling Frog and Hemp Beverage Alliance, raised objections against emergency regulations introduced by the Cannabis Control Board on June 20th outlawing Delta 8 derived THC (as opposed to Delta 9 derived THC which is what has traditionally been consumed for the ‘high’ received from imbibing cannabis). The companies argue that such a ban is not only detrimental to their business but also stands in direct violation of the Marijuana Regulation and Taxation Act (MRTA). They believe that the regulations were hastily implemented without considering the broader implications on the hemp industry and its stakeholders and are calling for a reversal.
Columbia Care Dispensary Closure in Rochester
Aug. 04, 2023
Brief Summary: Columbia Care, a prominent medical cannabis company in New York, was forced to temporarily shut down its Rochester dispensary after the Office of Cannabis Management (OCM) declined their request for a waiver to operate with a virtual pharmacist – a requirement specific only to medical operators. This decision impacted approximately 750 patients in the area. The closure, says Columbia Care, was a result of an unexpected shortage of pharmacists due to medical and parental leaves combined with vacations and difficulty hiring qualified pharmicists as a result of shortages lingering from COVID.
Service-Disabled Veterans File “Fiore Lawsuit” Denouncing the CAURD Program
Aug. 2, 2023
Brief Summary: A group of service-disabled veterans, with notable figures like Carmine Fiore and Steve Mejia leading the charge, voiced their concerns regarding the eligibility criteria set for the Conditional Adult-Use Retail Dispensary (CAURD) program and filed suit against the state. They believe that the criteria are overly stringent, exclusionary, and harmful to other social equity applicants. Their primary contention is that these criteria not only violate the U.S. Dormant Commerce Clause but also go against the provisions of the Marijuana Regulation and Taxation Act (MRTA). The veterans emphasize the need for a more inclusive approach that doesn’t sideline deserving candidates.
Link: https://nypost.com/2023/08/03/
Anti-Cannabis Advocacy Groups vs. OCM
June 20, 2023
Brief Summary: A coalition of anti-cannabis entities has initiated a lawsuit against the State of New York, Governor Kathy Hochul, the Cannabis Control Board, and the Office of Cannabis Management. The plaintiffs, including the Cannabis Impact Prevention Coalition, Cannabis Industry Victims Seeking Justice, and several individuals with personal grievances against cannabis, argue that the state’s legalization contradicts federal law, which still classifies cannabis as illegal. They also raise concerns about the potential negative impacts of cannabis, including addiction, mental health issues, and societal dangers. The lawsuit demands the annulment of both medical and adult-use cannabis laws in New York, asserting that only FDA-approved cannabis should be recognized as medical marijuana.
Link: https://www.greenmarketreport.
New York’s Cannabis Control Board Issues Emergency Hemp Regulations
June 20, 2023
Brief Summary: New York’s Cannabis Control Board rolled out the emergency regulations for hemp and its associated cannabinoids mentioned above on this date. These regulations enforce tighter THC limits on hemp products and specifically prohibit cannabinoids such as Delta-8 THC, THC-A, and THC-O. This action is a response to companies exploiting a 2018 Farm Bill loophole to sell THC-rich edibles. The overarching goal is to ensure that intoxicating hemp products are consistent with the regulations set for the adult-use market. The fallout from these emergency regulations has impacted businesses across the state who have been forced to pull products from shelves that are no longer permissible under state law.
And that summarizes August’s most impactful developments! Tune in next time…
Cheers,
Mike
 |
ReplyForward
|