Retail dispensary licensees sue New York cannabis authorities over unfair treatment
- A lawsuit was filed against the CCB and OCM by four CAURD licensees on January 10, 2025.
- The lawsuit challenges the granting of waivers that violate the 1,000-foot buffer rule between dispensaries.
- The plaintiffs aim to protect the integrity of New York's equity-driven cannabis program and its business operators.
In New York, four Conditional Adult-Use Retail Dispensary (CAURD) licensees initiated a lawsuit on January 10, 2025, targeting the Cannabis Control Board (CCB) and the Office of Cannabis Management (OCM). This legal action stems from the issuance of Public Convenience Waivers that bypass established proximity regulations designed to maintain a 1,000-foot buffer between dispensaries. These waivers were granted without public notice, analysis, or discussion, raising concerns about the fairness and integrity of the CAURD licensing program. The CAURD program, established in 2022, aimed to create a more equitable cannabis market in New York by providing opportunities for justice-involved individuals and historically marginalized operators. However, the lawsuit alleges that the CCB's actions are undermining this objective by allowing new dispensary locations to open closer than the mandated distance, jeopardizing existing businesses. The plaintiffs argue that these waivers harm not only their ability to operate successfully but also threaten the state's broader efforts to cultivate a fair and inclusive cannabis industry. Numerous organizations, including the New York Cannabis Retail Association and the National Hispanic Cannabis Council, have expressed their support for the lawsuit, emphasizing the need for the CCB and OCM to adhere to their own regulations. The lawsuit conveys frustration from CAURD applicants who fear that the CCB's lax approach will lead to over-saturation of dispensaries in certain areas, damaging their businesses and the community's potential for growth and stability in the legal cannabis market. This legal challenge calls for the CCB to establish clear and consistent rules governing proximity waivers, advocating for processes that include public input and due diligence before any waivers are granted. The growing sentiment among licensees is that without stringent adherence to these regulations, the goals of the CAURD program may be significantly jeopardized, hindering the prospect of an equitable cannabis landscape in New York.