This post was originally published on this site.
The two lawsuits challenging New York’s Conditional Adult-Use Retail Dispensary program were finally settled on Friday when NYS Supreme Court Judge Kevin Bryant lifted an injunction that halted the state’s cannabis marketplace for nearly four months.
The Coalition for Access to Regulated & Safe Cannabis, which includes five of New York’s medical cannabis companies, sued the state in March to force regulators to open up licensing for all retail dispensary applicants immediately.
In August, four service-disabled veterans who intended to apply for dispensary licenses also filed suit, arguing that the Cannabis Control Board and Office of Cannabis Management violated the state constitution’s separation of powers clause when they created the CAURD program. The medical coalition also joined the veterans lawsuit shortly after it was filed.
After months of negotiations, the state and the plaintiffs settled on Friday. The terms require the CCB to provide retail licenses to the four veterans and to the five medical companies, in addition to other guarantees – including that the CCB cannot issue any new or additional CAURD licenses until April 1, 2024.
Related: Pending court approval, settlement agreements unclog New York’s cannabis industry rollout
Once the settlement terms were made public, NY Cannabis Insider asked industry stakeholders – through an online form – to weigh in. Here’s what they had to say.
Responses have been lightly edited for grammar and style.
Jeffrey Hoffman, Managing Partner, Jeffrey Hoffman & Associates
1. The ROs got everything they wanted.
2. The disabled vets got everything they wanted.
3. Nothing here prevents others from suing.
4. NY continues to fix the deficiencies in its legislation-to-regulation process by giving licenses to litigants.
Dalton Battin, President of S2S Consulting Group, LLC
I really believe that the Office of Cannabis Management is subjecting itself to a whirlwind of future lawsuits.
First, there are plenty of other service-disabled veterans with standing who can file a similar, if not identical, suit as soon as this lawsuit is settled. Second, the OCM just allowed four applicants to skip the line, including applicants who qualify for extra priority, without any other Social and Economic Equity applicants even being considered. If I were an SEE applicant, especially an SEE applicant who qualifies for extra priority, and I don’t receive a license, I would sue the OCM without hesitation.
Fatima Afia, Associate, Rudick Law Group, PLLC
As to the Fiore lawsuit, I’m delighted to see the injunction being dissolved which would allow provisional CAURDs to finally operationalize – a result that is long overdue given the tremendous resources and investments made by these licensees in reliance on receiving a license.
But I am disappointed by OCM’s agreement to not only award provisional retail licenses to the plaintiffs but to give them apparent priority and site protection over everyone applying in the general licensing round (which includes other service-disabled veterans and similarly situated SEE applicants).
Granting licenses and awarding such priority to plaintiffs in exchange for dismissal of a lawsuit sets the wrong kind of precedent and emboldens others with grievances to bring their own lawsuits against OCM, which threatens the stability of an already volatile NY marketplace.
It is for this reason that the court in Fiore explicitly instructed OCM to not offer licenses as part of any settlement with the plaintiffs.
Sean McKenzie, Cofounder, NY for Social & Economic Equity
While I applaud the resuming of the CAURD program, a lingering discontent persists. Corporate cannabis discreetly exerted its influence, overpowering New York’s commitment to economic empowerment for marginalized communities.
The current exclusion of numerous deserving CAURD applicants, who fervently championed an authentic New York cannabis industry, injects a tinge of disappointment into this moment. A lot more than time was lost in these four months. Experiencing financial losses, severed relationships, and missed opportunities is a surreal retraumatization. My hope is that consumers keep this in mind when making future purchasing decisions.
Joe Rossi, Managing Director, cannabis practice group leader, Park Strategies
Two things I know:
1. Jayson and Britni Tantalo of Flower City Dispensary better get a license ASAP. They have worked their hearts out on the CAURD Coalition, they have not received a CAURD license yet and they deserve to be a part of the CAURD program.
2. Dispensary applicants that have fully built-out locations with local support like LakeHouse Cannabis in Cortland need to receive their licenses ASAP.
Britni Tantalo, President, NY Cannabis Retail Association, CAURD Applicant for Flower City Dispensary
After hearing the details of the settlement, I could not help but feel torn between happiness and utter fear of the future for my family and many others.
To know that the many deserving individuals who have been provisionally licensed are able to move forward is nothing short of a blessing and brings joy to hear. However, I cannot help but feel fearful of what will happen to myself and those left behind as applicants.
The timeline of April is not feasible nor something that any of us can withstand financially. Most if not all of us are already on the brink of bankruptcy, so pushing things out will only seal this fate. The option left on the table for applicants is to reapply for social equity or general licensing, which are a lottery. Who wants to leave their stability for their future and for their families in the hands of a lottery? The CAURD program was made to right wrongs, not create more. To me, this is a half win for New York cannabis, not a complete win, unless all of those who believed in, applied for and qualified are included.