Challenging State and Local Cannabis License Denials: Current Trends and Issues

Applicants denied licenses or permission to operate a cannabis-related business have challenged unfavorable determinations in a variety of ways. One common basis for challenging the denial of a license or other form of permission to operate a cannabis business ("cannabis license") has been to argue that the rules governing the grant of licenses were applied in an arbitrary and capricious manner. Litigants have also challenged cannabis license decisions by alleging that the process was corrupt. This article focuses on some of the more common challenges to cannabis license decisions and what can be learned from the outcomes to date.

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