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<title>Interstate commerce Archives — Black Cannabis Magazine</title>
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<description>We educate, inform, empower + provide entertainment for our TRIBE. Highlighting people of color in the cannabis industry.</description>
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<title>New CAURD Lawsuits: A Legal Hurdle for NY Cannabis Stores</title>
<link>https://blackcannabismagazine.com/new-caurd-lawsuits-a-legal-hurdle-for-ny-cannabis-stores/</link>
<comments>https://blackcannabismagazine.com/new-caurd-lawsuits-a-legal-hurdle-for-ny-cannabis-stores/?noamp=mobile#respond</comments>
<dc:creator><![CDATA[Hazey Taughtme]]></dc:creator>
<pubDate>Thu, 21 Dec 2023 16:32:38 +0000</pubDate>
<category><![CDATA[Government]]></category>
<category><![CDATA[Law]]></category>
<category><![CDATA[NEWS]]></category>
<category><![CDATA[Cannabis Growers]]></category>
<category><![CDATA[CAURD program]]></category>
<category><![CDATA[dispensary licensing]]></category>
<category><![CDATA[featured]]></category>
<category><![CDATA[Federal Lawsuit]]></category>
<category><![CDATA[industry impact]]></category>
<category><![CDATA[Interstate commerce]]></category>
<category><![CDATA[Legal Challenge]]></category>
<category><![CDATA[New CAURD lawsuit]]></category>
<category><![CDATA[NY cannabis industry]]></category>
<category><![CDATA[Regulatory Compliance]]></category>
<guid isPermaLink="false">https://blackcannabismagazine.com/?p=198884</guid>
<description><![CDATA[<p>The New CAURD Lawsuits: A Stumbling Block for New York’s Cannabis Ambitions The budding cannabis industry in New York faces a new challenge with the emergence of the New CAURD Lawsuit, marking yet another legal hurdle that could significantly impact the opening of adult-use cannabis stores across the state. The Previous Settlement: A Brief Respite […]</p>
<p>The post <a href="https://blackcannabismagazine.com/new-caurd-lawsuits-a-legal-hurdle-for-ny-cannabis-stores/">New CAURD Lawsuits: A Legal Hurdle for NY Cannabis Stores</a> appeared first on <a href="https://blackcannabismagazine.com">Black Cannabis Magazine</a>.</p>
]]></description>
<content:encoded><![CDATA[<h3>The New CAURD Lawsuits: A Stumbling Block for New York’s Cannabis Ambitions</h3>
<p>The budding cannabis industry in New York faces a new challenge with the emergence of the New CAURD Lawsuit, marking yet another legal hurdle that could significantly impact the opening of adult-use cannabis stores across the state.</p>
<h3>The Previous Settlement: A Brief Respite</h3>
<p>Recently, New York regulators reached an <a href="https://blackcannabismagazine.com/ny-caurd-settlement-key-shift-in-cannabis-licensing/">settlement</a> in principle with a group of disabled military veterans, temporarily resolving the Carmine Fiore v. New York State Cannabis Control Board lawsuit. This lawsuit had previously resulted in an injunction, halting the operation of over 400 Conditional Adult-Use Retail Dispensary (CAURD) licensees. The plaintiffs contended that the Office of Cannabis Management’s (OCM) approach to licensing, prioritizing individuals with marijuana-related offenses and their families, was unconstitutional.</p>
<h3>The Legal Conundrum: Variscite LLC’s Federal Case</h3>
<p>Variscite New York Four LLC and Variscite New York Five LLC have initiated a <a href="https://www.scribd.com/document/694009909/Lawsuit-NY-Cannabis-1?secret_password=2fLSshlblhtNN2XRfg7h#fullscreen&from_embed">federal lawsuit</a> against the state Office of Cannabis Management (OCM) and the Cannabis Control Board, coinciding with the closing of the application window for adult-use retail licenses. This New CAURD lawsuits raises questions about the state’s licensing process, particularly in its constitutional compliance.</p>
<h3>The Crux of the Dispute: Dormant Commerce Clause and Residency Requirements</h3>
<p>Central to the lawsuits is the accusation that New York’s licensing system, favoring state residents, violates the federal Dormant Commerce Clause. This clause plays a pivotal role in preventing states from implementing discriminatory legislation against interstate commerce. The plaintiffs argue that their exclusion, based on non-residency, constitutes a violation of this clause.</p>
<h3>Plaintiffs’ Perspective: A Call for Equal Opportunities</h3>
<p>The companies behind the lawsuit, both owned by an individual with a prior marijuana conviction in California, seek inclusion in the “extra priority” pool of applicants. They contend that they meet all other criteria, with residency being the sole exception. This demand highlights the broader industry call for a more equitable and inclusive licensing process.</p>
<h3>OCM’s Stance: Silence Amidst Litigation</h3>
<p>In line with their policy, the Office of Cannabis Management has refrained from commenting on the lawsuit. This stance is in keeping with their approach to <a href="https://blackcannabismagazine.com/new-yorks-caurd-licensing-legal-hurdles-ahead/">previous</a> legal challenges that have affected the state’s cannabis sector.</p>
<h3>Broader Impacts: The Plight of Local Cannabis Growers</h3>
<p>This legal standoff has far-reaching implications, particularly for local cannabis growers who face a glut of product with no legal retail outlets available. The issue underscores the cascading effects of legal hurdles on the state’s entire cannabis supply chain.</p>
<h3>Legislative Response: Seeking Sustainable Solutions</h3>
<p>Efforts to support the industry persist, exemplified by Senator Jeremy Cooney’s willingness to explore legislative options to enhance industry stability, such as making the Cannabis Grower Showcases a permanent feature.</p>
<h3>Conclusion: Navigating the Legal Maze</h3>
<p>As New York’s cannabis industry contends with the New CAURD lawsuits, the delicate balance between regulatory compliance and industry support remains a critical consideration. The outcome of this lawsuit will be a determining factor in the trajectory of cannabis commerce in New York.</p>
<p>The post <a href="https://blackcannabismagazine.com/new-caurd-lawsuits-a-legal-hurdle-for-ny-cannabis-stores/">New CAURD Lawsuits: A Legal Hurdle for NY Cannabis Stores</a> appeared first on <a href="https://blackcannabismagazine.com">Black Cannabis Magazine</a>.</p>
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<title>Variscite Lawsuit Settlement Paves Way for Michigan-based Plaintiff’s AURD License</title>
<link>https://blackcannabismagazine.com/variscite-lawsuit-settlement-paves-way-for-michigan-based-plaintiffs-aurd-license/</link>
<comments>https://blackcannabismagazine.com/variscite-lawsuit-settlement-paves-way-for-michigan-based-plaintiffs-aurd-license/?noamp=mobile#respond</comments>
<dc:creator><![CDATA[Hazey Taughtme]]></dc:creator>
<pubDate>Wed, 31 May 2023 00:53:22 +0000</pubDate>
<category><![CDATA[Law]]></category>
<category><![CDATA[NEWS]]></category>
<category><![CDATA[AURD license]]></category>
<category><![CDATA[Cannabis Control Board]]></category>
<category><![CDATA[cannabis industry]]></category>
<category><![CDATA[cannabis license]]></category>
<category><![CDATA[CAURD license]]></category>
<category><![CDATA[Finger Lakes]]></category>
<category><![CDATA[Interstate commerce]]></category>
<category><![CDATA[Kenneth Gay]]></category>
<category><![CDATA[lawsuit]]></category>
<category><![CDATA[Michigan]]></category>
<category><![CDATA[New York]]></category>
<category><![CDATA[Office of Cannabis Management]]></category>
<category><![CDATA[Settlement]]></category>
<category><![CDATA[Variscite.]]></category>
<guid isPermaLink="false">https://blackcannabismagazine.com/?p=197450</guid>
<description><![CDATA[<p>Landmark Settlement In an unprecedented settlement that is sending shockwaves throughout the cannabis industry, the New York Cannabis Control Board has recently approved an agreement between Variscite NY One and the state Office of Cannabis Management (OCM). This agreement marks a major turning point in a contentious lawsuit that has drawn significant attention over the […]</p>
<p>The post <a href="https://blackcannabismagazine.com/variscite-lawsuit-settlement-paves-way-for-michigan-based-plaintiffs-aurd-license/">Variscite Lawsuit Settlement Paves Way for Michigan-based Plaintiff’s AURD License</a> appeared first on <a href="https://blackcannabismagazine.com">Black Cannabis Magazine</a>.</p>
]]></description>
<content:encoded><![CDATA[<h2>Landmark Settlement</h2>
<p>In an unprecedented settlement that is sending shockwaves throughout the cannabis industry, the New York Cannabis Control Board has recently approved an agreement between Variscite NY One and the state Office of Cannabis Management (OCM). This agreement marks a major turning point in a contentious lawsuit that has drawn significant attention over the past year.</p>
<h2>Plaintiff’s Victory</h2>
<p>The settlement comes as a triumph for the plaintiff, Kenneth Gay, the majority owner of Variscite. Gay, a Michigan-based dispensary applicant, had initially seen his application for a Conditional Adult-Use Retail and Dispensary (CAURD) license rejected, leading to the filing of his lawsuit. As a significant condition of the settlement, the OCM has agreed to grant Gay his sought-after Adult Use Retail Dispensary license, breaking the regulatory stalemate that had so far stymied the growth of cannabis dispensaries in the Finger Lakes region.</p>
<h2>Unconstitutional Allegations</h2>
<p>Gay’s lawsuit was not without its controversies. The Michigan dispensary owner alleged that the CAURD program was unconstitutional, violating protections of interstate commerce. These claims were given weight when U.S. District Judge Gary Sharpe agreed and granted an injunction in November, effectively halting the issuance of any dispensary licenses in five regions.</p>
<h2>Legal Hurdles</h2>
<p>However, the U.S. Court of Appeals for the Second Circuit, in a subsequent ruling in March, scaled back the injunction to only apply to the Finger Lakes region. Despite the board members maintaining they had a “strong ground” in the lawsuit, the ongoing legal dispute and injunction were perceived as inhibiting the opening of dispensaries and slowing down the regulated supply chain.</p>
<h2>The Road Ahead</h2>
<p>As of now, the terms of the confidential settlement agreement are set to become public later this week, once finalized and signed. The development represents a critical moment for the cannabis industry, signaling potential shifts in how cannabis licenses are granted and how interstate commerce is viewed in the legal cannabis landscape.</p>
<p>The post <a href="https://blackcannabismagazine.com/variscite-lawsuit-settlement-paves-way-for-michigan-based-plaintiffs-aurd-license/">Variscite Lawsuit Settlement Paves Way for Michigan-based Plaintiff’s AURD License</a> appeared first on <a href="https://blackcannabismagazine.com">Black Cannabis Magazine</a>.</p>
]]></content:encoded>
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