Military Veterans Sue NY Cannabis Regulators For Breaking The Law By Exclusively Prioritizing Former Pot Convicts

Oh, New York, what now?

In addition to the chaotic events that continue to rattle New York's beleaguered cannabis program, yet another lawsuit has been filed. This time, four military veterans are taking the Office Of Cannabis Management (OMC) to court.

What Happened: In a lawsuit filed by attorneys from NYC firm Clark Smith Villazor, LLP, Carmine Fiore, William Norgard, Steve Mejia and Dominic Spaccio are accusing the OMC of violating the Marijuana Regulation and Taxation Act (MRTA), which legalized cannabis, by prioritizing licenses for individuals with prior drug convictions, reported Times Union.

The complaint, filed in the state Supreme Court, argues that officials did not follow a provision in the law requiring that “the initial adult-use cannabis retail dispensary license application period shall be opened for all applicants at the same time.”

Under the law, all “social equity” applicants should have been prioritized, not just those with prior cannabis convictions, the veterans argue.

In the complaint, the plaintiffs ask the court to issue a temporary restraining order and preliminary injunction urging the state to stop awarding and processing any further retail licenses, writes Law.

“Plaintiffs are losing valuable retail locations that are being awarded to CAURD applicants while the remaining social equity applicants remain unable to even apply for a license (much less obtain one and become operational),” the complaint reads.

At this point, marijuana regulators have issued 463 retail licenses to individuals with prior marijuana-related convictions and non-profits.

See Also: New Yorkers Love Weed, First Legal Shop Rakes In Millions After Only Six Months Of Sales

Why It Matters: These four veterans have served their country collectively for more than two decades, which should logically place them in a priority group.

“Service-disabled veterans are the only social equity group in the law not born into priority status, but a group to which anyone could belong,” said Fiore, who served eight years in the U.S. Army and New York Army National Guard. “We are also the only priority group in the (law) that achieved its status by helping communities.

“It feels like we were used to get a law passed — a good law, one that helps a lot of people, as well as the state,” Fiore added “Then, once it was passed, we were cast aside for another agenda.”

In 2021, Fiore attempted to get involved in the cannabis industry when he secured a location in Suffolk County though he was unable to get the necessary license.

In October 2022, he shared his personal story about how cannabis practically saved his life.

Another plaintiff, William Norgard, said it was out of character for a veteran to sue the state to uphold the law. "We take oaths to defend the laws of our nation, and trust — maybe naively — that government officials will faithfully and legally execute those laws. What the Office of Cannabis Management is doing right now is in complete breach of that trust. As veterans, we know that someone has to hold the line.”

The Times Union reported that an OCM spokesperson said the agency does not comment on pending litigation.

Cannabis Chaos In New York

In March of this year, a similar lawsuit against the OCM was brought by the Coalition for Access to Regulated and Safe Cannabis (CARSC), for allegedly violating MRTA by reserving the first 150 retail licenses for social equity applicants.

The group involved in the lawsuit includes at least four large marijuana companies, Acreage Holdings ACRHF, Curaleaf Holdings CURLF, Green Thumb Industries GTBIF and PharmaCann.

Among the most challenging issues facing New York cannabis regulators today is the small number of legal retail dispensaries operating versus the thousands of illicit shops. Over the last month, OCM authorities have carried out several raids, though most without warrants, which is illegal. Now, these shop owners are also preparing lawsuits.

What’s Next: When it comes to New York's cannabis market, it seems anything can happen.

See Also: New York's Cannabis Program Is A 'Disaster' And Regulators Should 'Prepare For War,' Lawyer Says

If you are interested in hearing what industry experts have to say about the New York cannabis scene, join us at the biggest marijuana conferences in the world. The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices go up and secure a spot at the epicenter of cannabis investment and branding.

Photo: Benzinga edit with images via Pexels, and Tim Mossholder via Unsplash