Marijuana Business Daily
By Fred Dreier
A growing number of states are implementing strict cannabis laws that limit the number of marijuana businesses, using lotteries or complex scoring systems to determine who gets a license.
Many qualified entrepreneurs have been shut out of the industry as a result. But not all of them have gone quietly into the night.
Unsuccessful applicants in Massachusetts have filed lawsuits challenging state licensing processes, while a handful of entrepreneurs who walked away empty-handed from Washington State’s lottery for recreational permits are threatening to take legal action.
The Massachusetts lawsuits are still working their way through the courts, so it’s still too early to say whether this type of legal action can help reverse state licensing decisions or lead to an overhaul of the process. Still, licensing lawsuits could become increasingly common around the country going forward, regardless of the outcome.
Marijuana Business Daily spoke with several lawyers for advice on when to pursue legal action and steps you can take to bolster your case.
“The real culprit was a lack of communication between the state regulatory body, the zoning bodies and the [applicant],” said Rose Law Group Partner Ryan Hurley, who represented several clients during Arizona’s dispensary licensing process., which involved a lottery. “Unfortunately, once the decisions had been made, it was impossible to go back in time.”
To further discuss medical marijuana, Ryan Hurley can be reached at rhurley@roselawgroup.com
