There may finally be a light at the end of the tunnel for businesses wanting a general adult-use license to open a marijuana business in New York state.
During court proceedings earlier this week in state Supreme Court in Albany County, Judge Kevin Bryant ruled that no licenses be granted under the state’s CUARD program after discrepancies were uncovered about businesses not having met all the conditions in contradiction to previous state testimony.
But, when the Cannabis Control Board meets on Sept. 12, it’s possible general use licenses could be approved. Shannon Krasnokutski, assistant attorney general representing state Attorney General Letitia James, said in court Aug. 25 that regulations for general adult-use licenses have ended the period of review under the state’s administrative procedure. The comment review period and time for the review the regulations has been reduced by two-thirds in order for the regulations to be ready for the Sept. 12 Cannabis Control Board meeting.
“So you are anticipating by Sept. 12 it will be complete?” Bryant asked.
“September 12 the board is scheduled to vote on the final regulations,” Krasnokutski replied.
The next round of oral arguments in Carmine Fiore, William Nogard, Steven Mejiz and Dominic Spaccio v. New York State Cannabis Control Board et. al. is scheduled for Sept. 15.
Service-disabled veterans Carmine Fiore, William Norgard, Steve Mejia and Dominic Spaccio filed their lawsuit against the state Cannabis Control Board, state Office of Cannabis Management and related officials on Aug. 2. They argue the Cannabis Control Board and Office of Cannabis Management have usurped powers granted to the state Legislature by imposing social and economic policies that weren’t included in the original Marijuana Regulation and Taxation Act when it was passed in 2021. They allege the creation of the CUARD license was improperly limited to “justice involved individuals” who own a profitable “qualifying business” while postponing the licensing of additional dispensaries necessary to satisfy consumer demand.
Fiore, Norgard, Mejia and Spaccio argue the Marijuana Regulation and Taxation Act requires the state to open all adult-use retail dispensary applications at the same time, which is not what has happened. The MRTA includes 11 different types of licenses divided into two tiers — production and retail. In his affidavit to the court, Fiore argued he has already been economically harmed by the state’s creation of and focus on the CUARD program. Fiore, a former U.S. Army National Guard member, was injured while serving at Fort Sam Houston and aggravated the injury serving during Hurricane Sandy. When Gov. Andrew Cuomo signed the legislation in March 2021 legalizing adult-use recreational marijuana, Fiore former Fiore Enterprises as a service-disabled veteran-owned business and spent $11,000 on consultants, accountants and attorneys as well as a location for a business. There were only four towns and four villages on Long Island that allow marijuana dispensaries, and Fiore estimates there were only 15-20 available properties in Suffolk County that could house his business. He fears he won’t be able to open a business if the CUARD businesses proceed before he can submit a license.
The creation of CUARD licenses, which exclude service-disabled veterans and the other priority classes included in the state’s marijuana legalization program approved by the legislature, has excluded him from executing the contract on the property and cost him the rest of his investment. So far, the state has approved 463 CUARD licenses, according to Fiore, and none for the other legislature-approved classifications of business owners.
Krasnokutski, according to the court transcript, reiterated the state’s desire for Bryant to lift the injunction preventing the CUARD licensing to continue and allow all of the CUARD licensed businesses to open. There are 463 pending CUARD license applications. It’s not known how many general use license applications will be submitted — but Bryant signaled impatience at the lengthy delay for the general use licenses.
“At any point in time the Office of Cannabis Management wants to open it all up to everyone, they are more than capable of doing that. I will embrace it,” Bryant replied.
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