Conditional Adult-Use Retail Dispensary License (CAURD)
A Conditional Adult-Use Retail Dispensary License (CAURD) is a license granted by the state of New York to justice-impacted individuals or nonprofit organizations to open a legal cannabis dispensary. The licensing program aims to create economic opportunities for those previously harmed by punitive drug laws.
The program gives the highest priority to applicants who have membership in a community disproportionately impacted by cannabis prohibition, income below 80% of the county median, and a conviction for a marijuana-related offense under New York law (or a close relative with such a conviction). The program was open from 2022 to 2024. It was intended to be the first wave of legal dispensaries following the Marihuana Regulation & Taxation Act, which legalized recreational marijuana in New York State. The program is funded by a $200 million grant, which is financed through a combination of future tax revenue from cannabis products and private donors.
In Variscite NY Four, LLC v. New York State Cannabis Control Board (2025), the United States Court of Appeals for the Second Circuit found that the higher priority consideration for residents violated the Dormant Commerce Clause and unconstitutionally discriminated against out-of-state applicants. The Court remanded the case back to the district court for further proceedings.
[Last reviewed in May of 2026 by the Wex Definitions Team]
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