A gaggle of disabled army veterans filed a lawsuit in New York in opposition to hashish regulators claiming their system of awarding and issuing licenses to sure social fairness candidates violated the state structure.
The lawsuit, filed within the state Supreme Courtroom in Albany, argues the Workplace of Hashish Administration overstepped its authority beneath New York’s 2021 legalization regulation – the Marijuana Regulation and Taxation Act (MRTA) – and opened the licensing utility window first to these with marijuana offenses and their quick household quite than permitting all candidates to use on the identical time.
The lawsuit additional argues that disabled veterans might qualify as social and financial candidates beneath MRTA and obtain sure priorities and advantages in licensing, the Occasions Union in Albany reported.
This newest lawsuit in opposition to the OCM seems to have extra enamel than the same one filed in March by marijuana multistate operators aiming to realize entry within the state’s growing adult-use hashish retail market, authorized specialists advised MJBizDaily.
Multistate operators have been locked out of the state’s leisure market, however new laws and main coverage shifts proposed to stabilize the shaky rollout of New York’s adult-use program embody permitting a number of the nation’s largest MSOs to enter the expanded market by yr’s finish.
Within the MSO case, the Coalition for Entry to Regulated and Secure Hashish (CARSC) alleged the OCM and the Hashish Management Board (CCB) violated the state’s legalization regulation when the 2 businesses reserved the primary 150 adult-use retail licenses for conditional adult-use retail dispensary (CAURD) candidates, New York’s model of social fairness.
However within the veterans’ go well with, “not like CARSC, the plaintiffs right here search a short lived restraining order and preliminary injunction, which if granted would prohibit OCM/CCB from awarding or additional processing any extra CAURD licenses and/or conferring operational approval upon any extra provisional or current CAURD licensees till the court docket decides the movement and cross-motion for abstract judgment filed in CARSC v. New York State Hashish Management Board,” Fatima Afia, a marijuana legal professional at Rudick Regulation Group, advised MJBizDaily through e-mail.
If the excessive court docket grants the restraining order and preliminary injunction regulators shall be instantly prohibited from permitting current CAURD licensees to start operations, she added.
That might be an important blow to the state leisure marijuana program, which is falling broadly wanting market expectations with solely 21 retailers licensed and operational.
New York state launched leisure gross sales in late December.
A couple of weeks in the past, New York hashish regulators accredited greater than 200 social fairness retail licenses, practically doubling the whole to 463.
The veterans’ lawsuit threatens the approval course of for all these CAURD candidates and will halt licensing properly into 2024, Afia warned.
“That spells bother for your complete New York provide chain, which is already struggling,” she mentioned.
Chris Casacchia will be reached at email@example.com.