NY Cannabis Insider week in legal weed Nov. 12, 2022

Another autumn week gone by, another week closer to New York’s self-imposed deadline to open the state’s first dispensaries by the end of 2022. Let’s take a look at what we covered:

Yesterday we wrote about how weed industry stakeholders are reacting to majorly disruptive news of an injunction a federal judge put on New York’s CAURD program. U.S. District Judge Gary Sharpe on Thursday blocked New York’s Office of Cannabis Management from issuing any cannabis licenses under the Conditional Adult-Use Retail Dispensary application program in five of the 14 regions in which the agency is licensing CAURD dispensaries. The injunction applies to CAURD applicants in the Finger Lakes, Central New York, Western New York, Mid-Hudson and Brooklyn.

The suit argues that New York’s CAURD requirements discriminate against out-of-state cannabis operators in violation the federal Dormant Commerce Clause. The clause prohibits states from passing legislation that discriminates against or excessively burdens interstate commerce

Reporter Andrew Ward talked to a bunch of experts about the positives and negatives of New York’s marijuana home grow laws. The state’s home cultivation laws took effect for medical patients on October 5, and at some point in the not-too-distant future, these laws will extend to adults across the state.

Sentiment among most cannabis sources indicates an air of optimism, Ward writes. However, some caution that additional public education and consideration for specific individuals is needed to address regulatory basics and more intricate components.

David Pejovic, a New York cannabis lawyer who sits as vice-chair and co-founder of the Cannabis Association of New York’s (CANY) retail committee, wrote a piece for us about the issue of cannabis receiverships for New York adult-use licenses.

Since bankruptcy courts have held that legal cannabis businesses are still illegal under federal law, these courts and their protections are unavailable to plant-touching cannabis businesses nationwide, according to Pejovic. The lack of bankruptcy protection has rendered creditor remedies as limited, and hence, terms for commercial debt and equity financing are stringent against these businesses.

Peter Su – a SVP with cannabis banking software/consultancy company Green Check Verified – and David Zontak – a student at the Cardozo School of Law – penned an op-ed for NY Cannabis Insider that legal states are using all sticks, and no carrots to cajole legacy players onto the legal market.

Su and Zontak write that states with regulated markets should reconsider the ‘carrot’ to attract and incentivize participation therein; the carrot might include reduced start-up costs, relaxed testing requirements, improved accessibility, and reduced excise and cultivation taxes.

Earlier in the week Prince Lobel Tye shared with us a 20-question FAQ – which the firm originally published on its website – about the Office of Cannabis Management’s CAURD guidelines. The Guidance has far-ranging implications that will affect dispensary operations and the consumer experience when New York’s first retail locations open, predicted to happen in early 2023, the write.

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Tracey Kauffman, the chairman and founder of Cannaspire, wrote a guest column on How to ensure cannabis businesses are safe from cyber attacks.

Continuing our People to Know in NY Cannabis series, last week we featured George Vlamis, a co-founder of four cannabis companies, including one applying for a CAURD license.

Lastly, we posted attorney Jeffrey Hoffman’s latest Ask Me Anything segment on Friday. During the talk, Hoffman answered and opined on questions about insurance, gifting and more.

Have a nice weekend, everyone!

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