More and more cannabis companies are pressing for the return of “impact fees.”

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New York can glean several important lessons from the impact fee lawsuits and experiences in other states regarding the rollout of cannabis legalization:

1. Transparency in Fee Allocation: New York should prioritize transparency in how municipalities allocate impact fees collected from cannabis businesses. Ensuring that these fees are used to address genuine impacts related to cannabis operations can help mitigate potential legal challenges and foster trust between businesses and local governments.
2. Regulatory Oversight: Establishing robust regulatory oversight, similar to the Cannabis Control Commission in Massachusetts, can help prevent misuse of impact fees and ensure compliance with state laws and regulations. Clear guidelines for the review and approval of host community agreements can also help standardize practices across municipalities.
3. Equitable Access and Social Equity: New York should prioritize equitable access to the cannabis industry, particularly for communities disproportionately impacted by past drug policies. Implementing measures such as social equity programs and prioritizing licenses for individuals from marginalized communities can help address historical injustices and promote economic opportunity.
4. Flexibility in Fee Structures: New York could consider revising its fee structures to provide flexibility for municipalities while still ensuring that fees are reasonable and directly related to mitigating impacts of cannabis businesses. This may involve setting limits on fee collection periods or requiring municipalities to demonstrate the specific impacts addressed by the fees.
5. Engagement with Stakeholders: Engaging with stakeholders, including cannabis businesses, advocacy groups, and local communities, throughout the regulatory process can help identify potential issues and develop solutions that meet the needs of all parties involved. Collaboration and communication are essential for a successful rollout of cannabis legalization.

By learning from the experiences of other states and addressing potential challenges proactively, New York can work towards a more equitable, transparent, and successful rollout of cannabis legalization.