The New York State Cannabis Control Board voted to approve a settlement that would resolve two lawsuits and end a three-month-long freeze on recreational dispensary openings across the state.

The settlement, which still needs a judge’s approval before it can take effect, would lift a court order that has blocked the state from processing or issuing retail marijuana licenses since August. The order, by State Supreme Court Justice Kevin Bryant, reversed his previous order that had exempted 30 retail cannabis store applicants from an injunction he issued after the cases were brought challenging the administration of the state’s conditional adult-use retail dispensary (CAURD) program. 

According to the Associated Press (AP), one lawsuit was filed by four military veterans and the other was filed by a coalition that included large medical marijuana companies. They both challenged state rules that allowed people with drug convictions to open the first dispensaries.

The Cannabis Control Board said if the judge approves the settlement, more than 400 provisional retail licensees will be able to move forward with their dispensaries . Regulators have also opened up a general application window to grow, process, distribute or sell marijuana, expecting to issue more than 1,000 new licenses as a way to revitalize the market, the AP reported.

The settlement would end both lawsuits, The New York Times reported.

Neither group responded to the AP's request for comments. The AP reported that the settlement vote came during an emergency hearing in New York City.

To learn about the ethical considerations that CPAs and CPA firms should be aware of when considering services to the cannabis industry, attend the Foundation for Accounting Education's Ethical Considerations in Working with Cannabis Webinar on Dec. 13.