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From the Gulf Coast of the Alabama shoreline to the evergreen forests of Washington, no state has been safe from the uptake in litigation that hones in on the pitfalls and loopholes of a state-approved cannabis program. With a projected market of $112.4 billion by the end of 2024—a roughly 12% increase in sales from the following year, it is no surprise operators will take every measure to obtain a coveted license in the cannabis industry, even if that means taking it to the courts. See Andrew Long, “MJBiz Factbook: Marijuana Industry Will Add $112.4 Billion to US Economy in 2024,” MJBiz Daily (Apr. 27, 2024). However, legal challenges to states’ cannabis programs have had detrimental impacts on the public’s access to cannabis once it’s approved, especially for qualified patients. See Brendan Kirby, Three Years After Medical Marijuana Passed, Alabama Patients Still Waiting, FOX10 News (July 25, 2024). So, where is the middle ground between regulators and prospective operators?
Merit-Based Scoring or Lottery Selection
The juggle between choosing a merit-based scoring process or a lottery selection process for cannabis business licenses has been a demanding issue for state legislators when crafting the foundation of a cannabis program, especially when the number of licenses available is capped. As the industry has seen in states such as Florida, Missouri, and Alabama, a merit-based scoring process can lead to consequential delays due to ongoing litigation. See Keith St. Germaine Nursery Farms v. Department of Health, Case No. 17-5011RU (Fla. DOAH Oct. 31, 2017); Mo Cann Do v. Missouri Department of Health & Senior Services, No. ED110329 (Mo. Ct. App. E.D. Feb. 28, 2023); Alabama Always. v. Alabama Medical Cannabis Commission, CV-24-900524 (Montgomery Cty. Cir. Ct. 2023).