November 28th 2023.
On Monday, the New York Cannabis Board regulators approved a deal to settle lawsuits that have been blocking recreational cannabis dispensaries from opening. This is a move to restart the state’s legal cannabis market, which has been held up since August. Eli Northrup, Director of the Bronx Cannabis Hub, commented on the news, saying, “I’m glad they’ve agreed to a settlement and can move forward. 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 were filed by a coalition of large medical cannabis companies and a group of four military veterans, in response to rules that promised the first retail licenses to minorities with past cannabis convictions. As a result, the state’s marijuana market has been filled with confusion and chaos, as only a couple dozen legal shops have been allowed to open, and hundreds of black market storefronts have popped up across New York City.
The New York State Cannabis Control Board stated that, if the settlement is approved, it could move forward on more than 400 provisional retail licensees. According to Fortune, the 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. 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 be a great help to the city, which is currently facing a $7 billion budget gap. Mayor Eric Adams has had to cut the budgets for the police, libraries, and schools, and 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 do so.
[This article has been trending online recently and has been generated with AI. Your feed is customized.]