A Cheshire-based hemp farmer has filed a federal lawsuit challenging Connecticut’s cannabis cultivation licensing process, alleging it unfairly favors in-state social equity applicants and constitutes economic protectionism in violation of federal law. The suit, brought by Brant Smith, names Governor Ned Lamont, Attorney General William Tong, and Department of Consumer Protection Commissioner Bryan Cafferelli as defendants.
Smith, who has operated a hemp farm since 2018 and has sought a cannabis cultivation license since Connecticut legalized recreational sales in 2021, argues that the state’s licensing framework is discriminatory and unconstitutional. His legal team contends that the system effectively excludes out-of-state applicants and others who do not qualify for social equity status, despite his own experience and suitable facilities.
“I’ve played by the rules and the rules have been stacked against me,” Smith stated in previous remarks, reflecting a sentiment echoed by his attorney, Genevieve Park Taylor. Taylor asserts that Connecticut’s current licensing structure, by privileging in-state social equity individuals, is “improperly discriminatory” and violates the Dormant Commerce Clause of the U.S. Constitution. “It’s either everybody or nobody,” she added, highlighting the broad implications of the legal challenge.
Legal Foundation: The Dormant Commerce Clause and a New York Precedent
The lawsuit draws significant support from a recent ruling by the Second Circuit Court of Appeals in Variscite NY Four, LLC v. New York State Cannabis Control Board. This landmark decision found that New York’s method of awarding cannabis licenses, which prioritized applicants with New York-specific marijuana convictions, amounted to unconstitutional economic protectionism under the Dormant Commerce Clause. The clause prohibits states from enacting laws that unduly burden or discriminate against interstate commerce.
Smith’s suit mirrors this challenge, arguing that Connecticut’s licensing system, while not explicitly barring out-of-state applicants, functions as a de facto barrier by heavily favoring those who meet in-state social equity criteria. The legal team argues that the federal illegality of marijuana does not grant states immunity from Dormant Commerce Clause scrutiny, and that any protectionist measures require clear authorization from Congress, which is absent in this case.
Connecticut’s Social Equity Program Under Scrutiny
Connecticut legalized recreational cannabis in 2021 with the stated aim of addressing social justice and equity issues stemming from the war on drugs. The state’s licensing framework includes provisions for “social equity applicants,” defined as individuals who meet specific income and residency requirements in areas disproportionately impacted by past cannabis prohibition. These applicants are eligible for benefits such as expedited licensing, reduced fees, and tax credits.
Brant Smith, however, does not qualify as a social equity applicant under these criteria. While he has operated a hemp farm and actively sought to transition to cannabis cultivation, his exclusion from the preferential licensing track has fueled his legal challenge. This lawsuit adds to a series of legal disputes that have arisen concerning Connecticut’s cannabis licensing process, including challenges from businesses denied social equity licenses and controversies surrounding the state’s hemp regulations.
Broader Implications for the Cannabis Industry
This legal action reflects a growing trend of challenges to state-level cannabis regulations across the nation, particularly concerning residency requirements and social equity preferences. Courts are increasingly applying the Dormant Commerce Clause to scrutinize such state-specific rules, potentially forcing revisions to licensing schemes designed to bolster local economies. Attorney General William Tong’s office and the Social Equity Council have declined to comment on the ongoing litigation, signaling that this legal battle is poised to significantly shape the future of Connecticut’s burgeoning cannabis market and its commitment to social equity in the news cycle of legal cannabis developments.
