“New York Marijuana Regulators Settle Federal Lawsuit, Clearing Way for Dispensary Licenses in Finger Lakes Region”

NEW YORK — New York marijuana regulators voted Tuesday to settle a federal lawsuit that prevented them from issuing dispensary licenses in the Finger Lakes region.

The agreement revised at a meeting of the Cannabis Control Board would remove a legal impediment that has slowed the growth of New York’s fledgling marijuana market. The state was sued last year by a company owned by a Michigan resident who said New York’s retail license selection process unconstitutionally favors New Yorkers over residents of other states.

In November, a federal judge issued a temporary injunction against licenses being issued in five areas of the state, including Brooklyn. But the US Court of Appeals for the Second Circuit in March limited the injunction to the Finger Lakes area of ​​upstate New York.

The court order affected the deployment of dispensaries in New York. Critics have also blamed the state for what they call an overly cumbersome process designed to ensure that the first round of licenses is issued to people with past marijuana convictions or their family members.

Office of Cannabis Management general counsel Linda Baldwin told the board Tuesday that the plaintiff, Variscite NY One, has agreed to settle. She said the settlement would allow licenses to be issued in the Finger Lakes and would provide a license for the plaintiff in the future.

The board passed a resolution to move forward with a settlement, which Baldwin expected to file with the court this week.

State regulators said they would not provide additional details of the deal until it is finalized.

Calls seeking comment were made to Variscite’s attorneys.