Elevate dispensary in Mount Vernon, is one of a few Westchester locations that could have the first open pot store
By Dan Murphy
An “agreement in principle has been reached between the NYS Office of Cannabis Managment, OCM, and a four disabled Veterans, over the procedure in which licenses to operate cannabis dispensaries were awarded in New York state.
The lawsuit, filed in August, resulted in NYS Supreme Court Judge Kevin Bryant issuing a restraining order barring the issuance of new licenses, (called CAURD licenses), but also halting the OCM’s ability to finalize licensing and opening of about 40 applicants who were ready to open.
The lawsuit and the injunction crippled the early stages of the legal Marijuana industry in New York. At the time of the injunction, OCM approved 436 provisional licenses, and 27 of those have opened; 13 are in New York City and none have opened in Westchester.
The NYS OCM Board met on November 27 and passed a resolution approving the settlement which resolved that the Board “approves entering into a settlement agreement and stipulation of dismissal for the Fiori Action and Coalition Action.”
Disabled Veterans Carmine Fiore, William Norgard, Steve Mejia and Dominic Spaccio filed the suit. They argued that when OCM first opened the window only to applicants who had been convicted of a prior Marijuana related offense, the state violated the rights of disabled veterans and other New Yorkers to apply from the outset.
Details of the settlement have not been released, and the settlement is not final until it is approved by all parties and Judge Bryant.
In a release, the OCM stated, “Today, the New York State Cannabis Control Board (CCB) voted to approve an agreement to be presented to the New York State Supreme Court to allow for the continuation of New York’s Conditional Adult-Use Retail Dispensary Program (CAURD). If the Court approves the settlement agreement, the State’s 436 provisional CAURD licensees would be allowed to open storefronts once the remaining portions of their applications is confirmed; the Office of Cannabis Management had been legally prevented from further processing or issuing these licenses since August 7. The CAURD program is the first in the nation to allow those who were directly harmed by cannabis prohibition to make the State’s first cannabis sales.
“We launched the CAURD program squarely focused on realizing the commitment made by the MRTA, that those most impacted by prohibition would have a meaningful opportunity to participate in New York’s cannabis market. Today, we are one step closer to resolving litigation brought forth by equity entrepreneurs and our medical operators who felt that they were being left behind. Now that we have opened up licensing to all equity entrepreneurs and provided a clear pathway to participation in the adult-use market for our medical operators, we are able to continue to move this program forward together,” said Chris Alexander, Executive Director of the Office of Cannabis Management.
“New York’s cannabis market was designed to be the most equitable market in the world. We remain undeterred by the challenges of standing up that new market, and believe that the expansion of licensing opportunities and the inclusion of our medical operators will collectively ensure the success of the adult-use program and the expansion of the medical program. I have been deeply inspired by the grit and tenacity of our CAURD license holders. I want to thank Governor Hochul for her steadfast commitment to this effort, and we look forward to working together with licensees and partners across the industry to shape this new chapter in New York’s cannabis story.”
“Today’s approval of the settlement agreement by the New York State Cannabis Control Board marks a momentous step forward in our mission to cultivate a diverse and inclusive cannabis market,” said Tremaine Wright, Chair of New York’s Cannabis Control Board. “Once this settlement is approved, we are hopeful those impacted by the injunction will be empowered to open their storefronts and embark on their entrepreneurial journeys, bringing us closer to our goals.”
Since August 7, the Office of Cannabis Management (OCM) has been enjoined from further processing or issuing CAURD licenses. If the assigned judge approves the terms of the settlement agreements, the injunction will be lifted. The settlement terms are outlined in agreements that must be approved by the judge before they can be effective. The plaintiffs will submit the agreements to the Court immediately after they are signed by all the parties.
The Social and Economic Equity groups listed in the MRTA include: Individuals from a Community Disproportionately Impacted; Distressed farmers; Service-disabled veteran-owned businesses, and minority-owned businesses; and women-owned businesses, end of OCM statement.
Hopefully, the settlement will allow the 40 CAURD recipients who were waiting for five months to open as soon as possible. Many had invested hundreds of thousands of dollars into their business and were only waiting for a site visit and final approval.
Many marijuana growers in upstate New York have also had their businesses severely impacted by the delays. “Some 436 provisional licensees have had their business planning and rollout halted to a dead stop and New York State cannabis licensees throughout the supply chain have similarly been impacted by the delay of the retail rollout,” said Wright.
In Westchester, several CAURD license holders will vie to see who will open shop first. Elevate, located in Mt. Vernon, is one operator that was ready to open over the summer but has been waiting. Other applications in Yonkers and Peekskill are moving forward.
We will review the applications and temporary CAURD holders in Westchester and revise this story.
One interesting and confusing development in the legal marijuana roll out was the recent opening of a Cannabis showcase market in White Plains this month. This temporary, legal location, at 244 Main Street, White Plains, will be open until the end of the year, and was designed by the OCM to allow cultivators and license holders to sell their product to get the market moving. New Paltz has had a similar market open since the summer.
