Why it matters: The Coalition for Access to Regulated & Safe Cannabis (CARSC) has filed a lawsuit against New York’s Office of Cannabis Management (OCM), challenging the Constitutional validity of the Conditional Adult-Use Retail Dispensary (CAURD) license that was introduced last year. CARSC has accused the OCM of neglecting its responsibilities under the 2021 Marijuana Regulation and Taxation Act by not offering all applicants an opportunity to apply for the license. Instead, it argues, the OCM overstepped its authority and created a new license category that prevented an application from all interested parties.
What they are saying: CARSC claims that the OCM and Cannabis Control Board circumvented its responsibilities by creating the CAURD. CARSC’s lawsuit is seeking a declaration from a New York court that CAURD violates the state’s Constitution and that the OCM and CCB exceeded their authority under the Marijuana Regulation and Taxation Act.
The big picture: This is one of several lawsuits challenging the new regulatory regime under Governor Kathy Hochul that has run into hurdles in the courts. CARSC’s members, which include Acreage Holdings, Green Thumb Industries, PharmaCann, and Curaleaf, are some of the most vocal in the industry, raising questions about consumer access and equity.
What to watch: CARSC’s lawsuit could have far-reaching consequences for licensing and distribution in New York’s cannabis industry. However, if the lawsuit succeeds, opponents of the CAURD may find themselves in a stronger position to demand wider access to licenses in future.
My take: The CARSC lawsuit illustrates how challenging the regulatory environment is for cannabis companies in several U.S. states. Despite decades of activism, the fast pace of cannabis legalization across the country is leading to unexpected challenges that are putting significant roadblocks to regulators and entrepreneurs alike. As more states legalize cannabis for adult-use, the industry will need clear and enforceable rules to work within to maintain growth and foster stability.
