New York Cannabis Board Votes To Settle Lawsuits Stalling Legal Dispensaries

New York Cannabis Board regulators approved a deal to settle lawsuits that have blocked recreational cannabis dispensaries from opening.

New York Cannabis Board regulators approved a deal Monday to settle lawsuits that have blocked recreational cannabis dispensaries from opening.

The Associated Press reports the settlement is a move to restart the state’s legal cannabis market, which has been held up. The settlement still needs a judge’s approval before it can take effect.

“I’m glad they’ve agreed to a settlement and can move forward,” Eli Northrup, Director of the Bronx Cannabis Hub told Black Enterprise.“Now with the new license application period open, these individuals are not going to have the same kind of start that they were promised, but I do commend those for working towards the settlement without abandoning it.”

The lawsuits, which were filed to fight rules that promised the first retail licenses to minorities with past cannabis convictions, have blocked the state from processing and issuing retail marijuana licenses since August.

According to Fortune, the lawsuits were filed by a coalition of large medical cannabis companies and a group of four military veterans.

Since cannabis sales began a year ago, the lawsuits have turned the state’s marijuana market into confusion and chaos. Bureaucratic issues and lawsuits have allowed only a couple dozen legal shops to open, while farmers sit on a bevy of cannabis crops and hundreds of black market storefronts have popped up across New York City.

The New York State Cannabis Control Board said it could move forward on more than 400 provisional retail licensees if the settlement is approved.

New York’s Office of Management and Budget estimates revenue from cannabis sales to grow steadily from $20.0 million in 2024 to $38.0 million in 2027, according to the outlet. Additionally, statewide estimates start at $70.0 million in 2024, of which $38.0 million is expected to come from licensing fees and $32.0 million from excise and potency taxes. The state’s estimates grow to $339.0 million by 2027.

The tax revenue from cannabis sales in New York City could help the city battle a $7 billion budget gap that has forced Mayor Eric Adams to cut the budgets for the police, libraries, and schools. Adams has blamed the budget gap on migrants being sent to New York City by Texas Gov. Greg Abbott. Adams and New York Gov. Kathy Hochul have all but begged President Joe Biden for additional funds to help, but Biden has been reluctant to help.