Green Market Report — Michigan Man Who Sued NY Over Cannabis Licensing Goes After Washington State

A Michigan cannabis entrepreneur on a quest to remove residency requirements from adult-use cannabis programs continues to stay busy in state courts.

Kenneth Gay, the owner of Peridot Tree WA Inc., challenged the Washington State Liquor and Cannabis Control Board’s decision to reject his company’s application for a retail license under the state’s social equity program. The program, designed to allocate nearly four dozen cannabis retail licenses, was created to compensate individuals disproportionately affected by the federal drug war.

The lawsuit, filed last week, argues that the rejection is unjust, pointing to Gay’s past cannabis conviction as a qualifying factor for the program. However, a hurdle in Gay’s claim is his noncompliance with Washington’s six-month residency requirement, a stipulation he claims is unconstitutional under the dormant commerce clause.

This isn’t Gay’s first attempt to navigate around state-specific cannabis licensing regulations. His companies have initiated similar legal challenges in other states, includingNew YorkandCalifornia, questioning the constitutionality of residency requirements.

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