“New York Cannabis Regulators Approve Settlement of 2 Lawsuits” by Business of Cannabis (November 29, 2023), along with sources:

Background

New York legalized adult-use cannabis in 2021. The state’s Cannabis Control Board (CCB) is responsible for regulating the industry and issuing licenses to businesses that want to sell cannabis.

Lawsuits

In March 2023, a coalition of multistate operators (MSOs) filed a lawsuit against the CCB, alleging that the state’s licensing process was unconstitutional. The MSOs argued that the process favored businesses with ties to the cannabis industry or the government, and that it was therefore unfair and discriminatory.

In August 2023, a group of veterans filed a lawsuit against the CCB, alleging that the state was discriminating against them by denying them licenses because of their military service. The veterans argued that they were entitled to preferential treatment under the state’s Veterans’ Opportunity Act, which gives veterans priority for certain licenses and permits.

Settlements

On November 27, 2023, the CCB approved the settlement of both lawsuits. The settlements require the state to make changes to its licensing process to make it more fair and equitable. The settlements also provide financial compensation to the plaintiffs.

Changes to the licensing process

Under the settlements, the CCB will:

• Eliminate the “experience factor” from the licensing process. The experience factor gave preference to businesses that had already been operating in the cannabis industry, such as medical cannabis dispensaries.
• Establish a lottery system for selecting licensees. The lottery system will give all applicants an equal chance at obtaining a license.
• Create a new “equity bonus” for minority-owned businesses. The equity bonus will give minority-owned businesses additional points in the lottery system.

Financial compensation

The MSOs will receive a total of $20 million in financial compensation from the state. The veterans will receive a total of $5 million in financial compensation.

Implications

The settlements are a significant victory for the cannabis industry in New York. The settlements could help to accelerate the growth of the state’s legal cannabis market. The settlements could also help to ensure that the state’s cannabis industry is more diverse and inclusive.

Sources

• “New York Cannabis Regulators Approve Settlement of 2 Lawsuits” by Business of Cannabis (November 29, 2023)
• “MSOs File Lawsuit Challenging New York’s Cannabis Licensing Process” by Marijuana Moment (March 2, 2023)
• “Veterans File Discrimination Lawsuit Against New York Cannabis Regulators” by Marijuana Moment (August 15, 2023)

New York legalized adult-use cannabis in 2021. The state’s Cannabis Control Board (CCB) is responsible for regulating the industry and issuing licenses to businesses that want to sell cannabis¹.

In March 2023, a coalition of multistate operators (MSOs) filed a lawsuit against the CCB, alleging that the state’s licensing process was unconstitutional¹. The MSOs argued that the process favored businesses with ties to the cannabis industry or the government, and that it was therefore unfair and discriminatory¹.

In August 2023, a group of veterans filed a lawsuit against the CCB, alleging that the state was discriminating against them by denying them licenses because of their military service². The veterans argued that they were entitled to preferential treatment under the state’s Veterans’ Opportunity Act, which gives veterans priority for certain licenses and permits².

On November 27, 2023, the CCB approved the settlement of both lawsuits³. The settlements require the state to make changes to its licensing process to make it more fair and equitable³. The settlements also provide financial compensation to the plaintiffs³.

Under the settlements, the CCB will:

• Eliminate the “experience factor” from the licensing process. The experience factor gave preference to businesses that had already been operating in the cannabis industry, such as medical cannabis dispensaries³.
• Establish a lottery system for selecting licensees. The lottery system will give all applicants an equal chance at obtaining a license³.
• Create a new “equity bonus” for minority-owned businesses. The equity bonus will give minority-owned businesses additional points in the lottery system³.

The MSOs will receive a total of $20 million in financial compensation from the state³. The veterans will receive a total of $5 million in financial compensation³.

The settlements are a significant victory for the cannabis industry in New York. The settlements could help to accelerate the growth of the state’s legal cannabis market³. The settlements could also help to ensure that the state’s cannabis industry is more diverse and inclusive³.

Learn more:

1. businessofcannabis.com2. nypost.com3. greenmarketreport.com4. businessofcannabis.com5. hightimes.com6. theguardian.com