New York CAURD licensing blocked in five regions

The first batch of retail cannabis licenses were blocked from being issued in five regions in New York. A New York federal judge ordered the block pending the outcome of a lawsuit filed by a Michigan cannabis operator which claimed New York’s licensing selection process violates federal interstate commerce protections. The judge, Gary Sharpe issued the injunctions for the following regions:

Brooklyn, Central New York, The Finger Lakes, the Mid-Hudson Area, and Western New York

New York CAURD Ruling

Variscite NY Inc of Michigan sued state regulators over CAURD, New York’s program to license operators with previous cannabis convictions in the state. The owner of Variscite NY Inc had a previous cannabis conviction in Michigan, not New York, so the OCM ruled the company ineligible. The company applied for licenses in five regions, and those five regions were affected by the ruling. The dormant commerce clause has been used to challenge cannabis programs in other states previously. 

In total, the ruling will block 63 out of 150 total applicants. The other regions of the state will remain unaffected by the ruling. The ruling could delay the launch of retail cannabis sales in the five affected regions. This also does not rule out seeing more cases in other regions, so Global Go continues to monitor the situation.

NY Office of Cannabis Management Response

New York’s Office of Cannabis Management (OCM) has yet to comment on the stay and the pending ruling. There have been no official updates as to how this ruling will affect the expected announcement of more winning applications on 11/21. The OCM’s next meeting is scheduled for 11/21.

For more information on this ruling or if you are interested in obtaining a New York cannabis license, fill out the form below to speak with a Global Go cannabis consultant today: