Could The NY Conditional Adult Use Retail Dispensary Program (CAURD) Be In Jeopardy? –

07 September 2022

Duane Morris LLP

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Maine law requires all medical marijuana business owners to comply with a new Maine law
Recent US rulings have made it illegal to be a resident of the state
Court of Appeals for First Circuit, which ruled in favor of the
A violation of the statute is a violation “Dormant Commerce Clause”
of the United States Constitution, which prohibits any state from
Passing legislation to restrict interstate commerce. Its opinion
(Northeast Patients Group et al. v. United Cannabis Patients and
Caregivers of Maine: The Appellate Court upheld a Lower Court
The ruling that the residency requirement violates the Constitution
Interstate trade restrictions

All directors are subject to the Maine’s medical cannabis program.
Officers of a licensed medical marijuana dispensary or their representatives are required
To be residents of the state. Maine had a history of residents.
It has dropped its residency requirement in its adult-use market
Following an earlier legal challenge, which was also based upon the
It wanted to keep the Dormant Commerce Clause in place, but it was not able to do so.
Program for medical cannabis.

This could pose a problem for NY’s adult use cannabis.
program, as part of the requirements are that the potential licensees
Must have been arrested (or be related to someone who has been).
You will be arrested for a marijuana-related crime in New York.
New York resident at time of arrest. This could have been a result of the arrest.
Like be deemed a residency condition and therefore lead to challenges
Not only are individual licenses granted but the entire CAURD.
program.

Even more problematic is the fact this
A ruling could also open up the possibility of legal challenges to a number of
Other State laws prohibiting the import or export of cannabis
As the same reason, the residency is invalidated in other states
As disallowing cannabis exports is prohibited, requirements could be imposed.
Imports between countries could be interpreted as similar placing
Interstate commerce cannot be restricted in an unreasonable way

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Disclaimer:This Alert has been
This publication was created for informational purposes only.
It is not intended to be used as legal advice. More
Information, please see the firm’s website
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