Variscite NY Four, LLC v. New York State Cannabis Control Board – Quick Reference To Everybody’s Commentary

It’s been a couple of weeks and things have settled.

Here’s a quck guide to what everybody is saying without you having to do the work I just did

 

The primary doc

 

The Commentary

Federal Court Rules NY Cannabis Licensing Preference for In-State Convictions is Unconstitutional

On August 12, 2025, the U.S. Court of Appeals for the Second Circuit ruled that New York’s adult-use cannabis licensing scheme, which gives “Extra Priority” to applicants (or certain relatives) with New York State marijuana convictions, is unconstitutional under the Dormant Commerce Clause. The case, Variscite NY Four, LLC v. New York State Cannabis Control Board, vacates the Northern District of New York’s denial of a preliminary injunction and remands for further proceedings.
Falcon Rappaport & Berkman

Dormant Commerce Clause Limits New York’s Cannabis Licensing – A New Second Circuit Decision

By: Andrew P. Cooper, Esq., LL.M. and Terran Cooper

In an August 12, 2025, opinion, the U.S. Court of Appeals for the Second Circuit vacated an order from the Northern District that had denied preliminary injunctive relief to two California-owned cannabis license applicants challenging New York’s adult-use cannabis licensing program. In a two-to-one decision, the panel (with a partial dissent by Chief Judge Livingston) held that the NY adult-use cannabis licensing scheme discriminated against out-of-state applicants in violation of the Dormant Commerce Clause by granting “extra priority” to applicants who had (or who’s relatives had) pre-2021 cannabis convictions in New York. Out of state or federal convictions did not qualify. This ruling may have a significant impact on the landscape for New York’s emerging adult-use cannabis industry, with some key limitations.

https://frblaw.com/dormant-commerce-clause-limits-new-yorks-cannabis-licensing-a-new-second-circuit-decision/

 

Harris Sliwoski

Federal Appeals Court Rejects Preferences for In-State Cannabis Applicants

A federal appellate court has ruled that a New York cannabis licensing rule favoring in-state residents is unconstitutional, because it discriminates against applicants residing out-of-state. We have been tracking this case for the past couple of years — see our prior posts here and here.

This decision by the Second Circuit Court of Appeals is the first to apply the Dormant Commerce Clause to adult use cannabis — and, in combination with an earlier decision involving Maine’s medical cannabis program, suggests a trend toward rejection of all protectionist state cannabis laws despite the federal illegality of marijuana sales and use.

Federal Appeals Court Rejects Preferences for In-State Cannabis Applicants

Libation Law Blog

Second Circuit Brings State-Tied Restorative Justice Licensing Under Constitutional Scrutiny

New York’s attempt to bake “home field advantage” into its cannabis licensing process just ran into a constitutional buzzsaw. In Variscite NY Four, LLC v. New York State Cannabis Control Board, No. 24‑384 (2d Cir. Aug. 12, 2025), the Second Circuit held that—even in a federally illegal market—the Dormant Commerce Clause still applies. New York cannot favor applicants with New York convictions, even under the banner of social or restorative justice.

There is commentary from Mandelbaum Barrett PC in NY entitled

Second Circuit Strikes NY Cannabis Rules

But they’ve decided to block my IP so i can’t tell you what it says.

 

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