May 1, 2025
FK Represents Coalition of New York Registered Organizations in a Legal Challenge to $20 Million
FK represents a coalition of New York Registered Organizations (“ROs”)in contesting a $20 million special licensing fee imposed by the state’s cannabis regulatory agency for converting vertically integrated medical licenses into adult-use licenses. The legal challenge argued that the fee violated the authorizing statute, constituted an unconstitutional tax, and was designed to unfairly burden RO businesses under the guise of promoting “competitive balance.” FK’s suit alleged violations of the separation of powers doctrine, the takings clause, and the equal protection clause. As a result of the litigation, New York lawmakers amended the cannabis law and reduced the fee by $5 million.
Team Members: David Feuerstein and Matt Schweber
