Industry Yacht Party, 2024

Why Cannabis is a Brutal Business — And Why Networking is Your Secret Weapon

Why Cannabis is a Brutal Business — And Why Networking is Your Secret Weapon

by KymB

Alright, let’s get real — the cannabis industry isn’t just hard, it’s a full-contact sport. Everyone’s fighting for shelf space, licenses, and loyal customers. Margins are tight, regulations are a nightmare, and let’s face it — making a profit in this green game can feel like you’re rolling a joint in a hurricane.

 

So how do you survive? Better yet, how do you thrive? Simple: You network like a boss. And there’s no better place to rub elbows with the right people than at the Cannabis Means Business (CMB formerly CWCBExpo) Conference at NYC’s Jacob Javits Center June 4-5th, 2025.

 

Why CMB? Because Playing It Smart Pays Off

CMB offers a smart East Coast investment packed with industry power players who can take your business to the next level.

 

The Parties & Networking That Make CMB Legendary

 

Sure, you’re there to learn, but let’s be honest — the real deals happen when you’re out of your blazer, vibing with your fellow cannabis bosses. That’s where the CMB YOTEL Rooftop Pregame and Yacht Party come in — and trust me, you don’t want to miss either.

 

The YOTEL Rooftop Pregame — Before the conference even kicks off, the party’s already lit. The all-inclusive rooftop bash at YOTEL in Midtown is packed with amazing food, cocktails, and a sweet sesh area where you can relax and connect with like-minded industry pros. It’s casual yet upscale — the perfect way to make key contacts before you even hit the expo floor.

 

The Yacht Party — Imagine this: You’re cruising around NYC, skyline views, in an industry friendly setting, dinner, and drinks, chatting up potential investors, retail buyers, and industry heavyweights. It’s an all-inclusive, white-napkin sit-down dinner experience, just with gourmet food, premium drinks, and a whole lot of power (and flower 🙂 while networking on the water. Deals get done on this boat PERIOD.

 

Why Networking at CMB is a Must Attend Event

 

In cannabis, who you know is everything. You can have the dankest product on the planet, but if you’re not connecting with the right distributors, investors, or retail buyers — you’re just another lonely nug in the grinder.

The CMB Conference is where those connections happen. Whether you’re swapping business cards on a yacht, sparking a joint in the rooftop sesh zone, or pitching your product at the expo — this is where you meet the people who can help your business blow up.

 

The Super Saver Pass: Your VIP Ticket to Cannabis Success

 

Wanna get the best bang for your bud? Grab the Super Saver Pass, which gets you:

 

✅ Full access to the CMB Conference — expos, seminars, and expert panels packed with insider info.

✅ Entry to the YOTEL Rooftop Pregame — eat, drink, sesh, and network with ease.

✅ A coveted spot at the legendary CMB Yacht Party — network while cruising around Manhattan in true VIP style.

 

That’s right — one pass, all the parties, all the connections, and a front-row seat to the future of cannabis.

 

**Don’t miss out. The Super Saver Pass is your ticket to making 2025 the year your cannabis business hits the jackpot.**

 

So what’s it gonna be? Are you ready to shake hands, make deals, and lock in partnerships that elevate your game? Or are you just gonna sit back and hope your Instagram and LinkedIn posts turn into sales?

 

Get your Super Saver Pass now — or risk watching the green rush pass you by.

 

See you in NYC!

Thank You & Stay Lit,

Sincerely

KymB
Co-founder, TribeTokes

Rooftop Party, 2024

Blunt Truth: Why You NEED to Be at CMB NYC This June

Blunt Truth: Why You NEED to Be at CMB NYC This June

 

If you’re serious about making moves in the cannabis industry — or just trying to break in — skipping the CMB Conference (formerly CWCBE) in NYC this June 2025 is a rookie mistake. Period.

 

Whether you’re a seasoned OG, a brand builder, or a wide-eyed newcomer, this event is where the real players show up to connect, learn, and lock down serious opportunities. Don’t let your competition out-hustle you by showing up while you’re stuck scrolling LinkedIn for outdated tip

 

Here’s why you can’t afford to miss CMB in NYC—because sitting this one out means missing big opportunities.

 

Cannabis is Evolving Fast — Stay Ahead or Get Smoke

 

This industry isn’t just “growing” — it’s exploding. Science is advancing, laws are shifting, and consumer trends are moving faster than your buddy who swears he’s “just gonna take one hit.”

 

CMB is where you’ll hear the inside scoop on everything from federal legalization updates to the next wave of cannabis wellness trends. You’ll leave with insights that could unlock your next business move — or help you avoid a costly mistake.

 

If you want to stay relevant, this is the conference to watch. Don’t get left behind.

 

Network Like a Pro (or Just Pretend You’re One)

 

Cannabis is still a who-you-know industry — and the biggest players? They’ll be at CMB.

This is your shot to connect with investors, suppliers, and power players who can open doors for you. Deals get done at these events — sometimes over a conference table, sometimes over a “J” at an afterparty.

Pro Tip: Come prepared with your elevator pitch, a solid game plan, and a willingness to strike up conversations with strangers. You never know who’s about to become your next business partner, investor, or client.

 

Find the Next Big Thing — Before Everyone Else Does

 

From next gen grow tech to cutting-edge infused products, the CMB expo floor is like walking through the future of cannabis.

Want to know what’s trending in edibles? Curious about the latest in precision dosing or high-performance cultivation gear? This is where you’ll get your hands on the newest innovations before they hit the mainstream.

Pro Tip: Don’t just wander aimlessly. Hit the floor with purpose. Ask vendors about trends they’re seeing — they often know more than the keynote speakers!

 

Real Education, Zero Boring Panels

 

I’ve been to enough cannabis events to know that not all speakers bring the heat — but CMB consistently curates some of the most valuable, actionable, and no-BS sessions in the game.

Want to nail your marketing strategy in a highly regulated industry? Curious how cannabis tourism is about to explode? Ready to scale your business without getting crushed by compliance headaches? CMB’s lineup delivers.

Pro Tip: Don’t just sit there quietly — ask questions, introduce yourself to the panelists, and make yourself memorable. The best connections often happen after the session.

 

Rooftop Afterparty. Yacht Party. Enough Said.

 

Look, you’re not just there to sit in conference rooms all day. When the sessions wrap up, CMB turns into a full-blown vibe.

Picture this: After a day of learning and hustling, you’re on a rooftop at sunset, drink or fatty in hand, surrounded by cannabis pros who are just as serious (and maybe a little wild) as you are. Conversations flow, connections happen, and suddenly you’re making deals you couldn’t have locked down anywhere else.

If you’re ready to experience luxury, set sail in true NYC style at our exclusive yacht party. Because nothing says “I’m serious about my business” like networking with industry leaders while sailing past the Statue of Liberty.

Pro Tip: Pack something nice — you’ll want to look sharp when you’re rubbing elbows with major players on the yacht deck.

 

No Excuses — Lock in Your Spot NOW

The cannabis industry isn’t waiting for you to catch up. Whether you’re building a brand, investing in growth, or launching a new product, CMB NYC is where you need to be this June.

✅ Buy your ticket

✅ Plan your game face

✅ Show up ready to network, learn, and make some serious moves

 

I’ll be there — and I plan to leave with new connections, fresh ideas, and maybe a little bit of a high hangover.

 

Don’t sleep on this. See you in NYC.

Sincerely

KymB
Co-founder, TribeTokes

Join Us at Cannabis Means Business 

The Cannabis Means Business Conference – NY Global Edition is more than an event—it’s a gateway to the future of the cannabis industry. By exhibiting, you’ll connect with a diverse audience, build strategic partnerships, and solidify your brand’s position in this transformative market.

 

Why New York, why now? Because NYC is where the cannabis industry intersects with the world’s leading sectors, and its influence is reshaping the market today.

 

Secure your spot now and be part of the premier event that’s defining the future of cannabis in North America and beyond. Let Cannabis Means Business put your brand at the center of the conversation.

 

Why New York, Why Now?

The Advantages of Exhibiting at Cannabis Means Business in NYC

 

As the cannabis industry continues its rapid expansion, businesses face a critical question: Where can they connect with decision-makers, discover innovative trends, and grow their market presence? For many, the answer is clear—New York City, and right now. Exhibiting at the Cannabis Means Business Conference – NY Global Edition is your chance to tap into this growing market at the epicenter of commerce and innovation.

Why New York?

New York has rapidly emerged as a critical market for cannabis, supported by forward-thinking policies and an expansive consumer base. Exhibiting in NYC isn’t just about being seen—it’s about positioning your brand where commerce, culture, and cannabis converge.

  1. A Massive Consumer Market: With a population of over 19 million, New York State represents one of the largest consumer bases in the U.S. Its diverse, largely cosmopolitan population provides an unmatched opportunity to build brand trust and visibility across many different demographics.
  2. Gateway to Global Markets: As an international hub, NYC attracts entrepreneurs, investors, and industry leaders from around the world. Exhibiting here opens doors to international markets, connecting your business with global opportunities that extend far beyond U.S. borders.
  3. Influence on Policy & Innovation: New York sets trends—not just in culture but in policy and innovation. Companies exhibiting in NYC align themselves with a forward-thinking ecosystem that fosters responsible and sustainable cannabis business practices.

Why Now? 

The cannabis landscape is transforming at an unprecedented pace, and New York’s market is still in its early stages. Businesses that establish a foothold now will reap the rewards of early adoption and influence. Here’s why timing is critical:

  1. Unmatched Growth Opportunities: New York’s cannabis market is on the rise, and companies entering now will be positioned as industry leaders. Exhibiting at Cannabis Means Business ensures your brand takes center stage during this pivotal growth phase.
  2. Cross-Sector Networking & Collaboration: NYC’s unparalleled mix of industries—finance, technology, retail, and more—provides an ideal platform for cannabis businesses to connect with traditionally non-cannabis sectors now exploring opportunities in this fast-growing industry.
  3. Showcasing Innovation in a High-Visibility Setting: As the cannabis sector matures, businesses are driving innovation in products, services, and technologies. Cannabis Means Business provides a premier platform to showcase these advancements to an audience eager to invest, collaborate, and grow.

Why Exhibit at Cannabis Means Business? 

Exhibiting at this conference a range of benefits designed to help your brand stand out and thrive in the competitive cannabis marketplace:

  • Access to a Targeted Audience: Gain direct access to an audience of decision-makers, entrepreneurs, and investors actively seeking partnerships and solutions.
  • Cross-Industry Exposure: NYC’s influence extends far beyond cannabis, drawing attention from financial institutions, tech innovators, and retailers who are increasingly interested in cannabis. This event is your gateway to partnerships with sectors driving the global economy.
  • Brand Visibility in a High-Stakes Market: New York is home to major media outlets and influencers who shape public perception. For the savvy operator, exhibiting in NYC opens up access for your brand to gain exposure that resonates far beyond the event, amplifying awareness and impact.

Shaping the Future of Cannabis

The cannabis industry’s future is being written here, today. Be a part of it—exhibit with us at Cannabis Means Business and position yourself as a thought leader driving standards and trends that will define the industry for years to come.

Join Us at Cannabis Means Business 

The Cannabis Means Business Conference – NY Global Edition is more than an event—it’s a gateway to the future of the cannabis industry. By exhibiting, you’ll connect with a diverse audience, build strategic partnerships, and solidify your brand’s position in this transformative market.

 

Why New York, why now? Because NYC is where the cannabis industry intersects with the world’s leading sectors, and its influence is reshaping the market today.

 

Secure your spot now and be part of the premier event that’s defining the future of cannabis in North America and beyond. Let Cannabis Means Business put your brand at the center of the conversation.

 

NYC Couple on rooftop with cannabis plant

Rescheduling Leads The Way

Each month, Cannabis World Congress & Business Exposition (CWCBExpo) offers a convenient roundup of the biggest cannabis news stories and hemp headlines emerging across the nation. Get these updates in your inbox by subscribing to our email newsletter, or follow us on Instagram, LinkedIn, Facebook, or Twitter (now X) to get the most recent edition when it’s published. 

 

The Justice Department’s recent announcement of the formal process to reclassify cannabis from Schedule 1 to Schedule III dominated cannabis headlines this month, and for good reason — it’s one of the most monumental shifts in federal policy toward cannabis in decades. Get the latest — and CWCBExpo’s take on rescheduling — in this blog.

 

Cannabis is officially being rescheduled

 

The Justice Department has officially announced the initiation of a formal rulemaking process to reschedule cannabis from a Schedule I to Schedule III drug under the Controlled Substances Act (CSA). This marks a pivotal shift in federal drug policy, as cannabis has remained classified as a Schedule I substance since the CSA was enacted in 1970. The decision follows President Joseph R. Biden, Jr.’s directive to the Attorney General and the Secretary of Health and Human Services (HHS) to conduct a comprehensive scientific review of cannabis’ current schedule status. 

 

After receiving HHS’s recommendations last August, the Attorney General sought legal advice from the Justice Department’s Office of Legal Counsel (OLC) to inform the rulemaking process. As part of this process, the DOJ has submitted a notice of proposed rulemaking, inviting public input and engagement. 

 

The public comment period has opened on the rule change and will remain open until July 22, 2024. You can submit your comments here.

 

While advocates like ourselves at CWCBExpo are grateful for the long-awaited progress, we recognize that there is still work to be done. 

 

“Cannabis should never have been Schedule I. I’m thankful this long-awaited step toward justice is finally reality,” said CWCBExpo CEO Christine Ianuzzi. 

 

The 2024 Farm Bill includes steps backward for hemp

 

The 2018 Farm Bill was a notable game-changer for many in the hemp and cannabinoid industries and in many ways enabled the multi-billion-dollar hemp CBD market crazy of the late 2010s and the early 2020s. The 2024 version of this legislation — a bill that’s renewed every few years — is now tackling the world of hemp-derived cannabinoids.

 

The U.S. House Committee on Agriculture voted in favor of an amendment to the 2024 Farm Bill that would ban intoxicating cannabinoids derived from hemp, like delta 8 THC, and synthesized cannabinoid products, like hemp-derived delta-9 THC products that have made their way onto smoke shop shelves and online sales of late. This change would alter the definition of hemp, splitting it into two categories: industrial hemp for making clothing, seeds for eating, and other non-cannabinoid purposes, and “hemp grown for cannabinoid extraction.” Currently, there is only one definition of hemp on the federal level: cannabis sativa plants containing no more than 0.3% THC.

 

The U.S. Hemp Roundtable, a national policy and advocacy organization, came out against the amendment, describing it as “deeply flawed and deeply objectionable.”

Aside from the uneasiness this amendment has sent through the hemp industry, the 2024 Farm Bill does include several other provisions that may be overall beneficial for the sector. For example, the bill includes provisions to help address regulatory barriers faced by certain hemp farmers while also revising restrictions on industry participation by individuals with prior drug felony convictions. 

 

Daily cannabis consumption surpasses daily alcohol consumption for the first time

 

Research conducted on data from the National Survey on Drug Use and Health found that around 17.7 million Americans consume cannabis daily or near-daily, while more than three million fewer people consume alcohol at the same rate. In 1992, less than 1 million people said they were daily or near-daily cannabis consumers. It’s a significant shift shaped by more than a decade of legal adult-use cannabis and more than 25 years of medical cannabis programs in the United States. 

 

69% of American voters support cannabis legalization 

 

A recent Fox News poll revealed that nearly seven in 10 American voters, including a majority of Republicans, support the legalization of cannabis. 

 

Released in the wake of Pres. Biden’s announcement regarding rescheduling, the survey underscores the widespread support for broader reform aimed at legalization altogether. Of the registered voters polled, a substantial 69 percent expressed their backing for legalization, with 45 percent indicating strong support for the reform. While Democrats exhibit higher support for the policy change, at 81 percent, the poll also highlights significant bipartisan backing, with 55 percent of GOP voters and 65 percent of independents endorsing legalization.

 

Cannabis wholesale prices are dropping

 

Wholesale cannabis prices are declining in some state-regulated markets, according to data shared by LeafLink and Cannabis Benchmarks. Overall, average wholesale flower prices dropped by 8.1% in 2023; by comparison, prices decreased by nearly 42% in 2022. Only three state markets experienced wholesale cannabis flower price increases: Alaska (7%), Missouri (20%), and Oregon (6%). 

In 2023, according to LeafLink’s Wholesale Cannabis Pricing Guide:

 

  • Average cartridge prices per gram decreased by 11.8%, from $20.42 to $18.02.
  • Average concentrates prices decreased by 11.5%, from $12.52 to $11.08.
  • Average edibles and ingestibles prices decreased by 4.8% over the course of the year, and prices for pre-rolls decreased by just 0.12%, a leveling off from the 12% average price decrease in 2022.

Make plans for cannabis’s growth at CWCBExpo

 

What do all these changes on the national level mean for your business? Come find out at CWCBExpo 2024. From exhibitors that’ll grow your business to making meaningful connections, start setting the groundwork for your next growth stage. Register now

New Jersey’s Cannabis Lounges: What To Expect

It’s official: Cannabis consumption lounges are coming to New Jersey, giving consumers a place to come together and enjoy sociable sessions in a public setting. The lounges, unanimously approved by the NJ Cannabis Regulatory Commission (CRC) in January, offer new opportunities to Garden State cannabis businesses and consumers alike. Here’s what you need to know about consumption lounges in NJ and what to expect in the coming months.

What are the rules for NJ consumption lounges?

The NJ CRC’s approval of cannabis consumption lounge rules came nearly a year after their introduction. Among the regulations governing these licensed “social use” locations are the following:

  • Consumption lounges must be attached to licensed retail locations. 
  • Consumption lounges are open to adults ages 21 years and older, and photo identification is required for entry.
  • Cannabis businesses are limited to one social use license, regardless of the number of dispensaries they operate. 
  • Social use licensing fees are $1,000 for microbusinesses and $5,000 for standard businesses.
  • Consumption lounges must install heating, ventilation, and air conditioning systems that prevent smoke and vapor from affecting neighbors.
  • Consumption lounges cannot sell tobacco, food, or alcohol, but guests may bring their own food or have it delivered (provided local governments allow it).
  • Businesses must not sell cannabis products to guests who show visible signs of intoxication, similar to requirements for bartenders.
  • Consumption lounges must be at least partially enclosed by barriers to prevent view from the public. 
  • Medical cannabis patients may bring their own cannabis products to consumption lounges.
  • Guests may not leave with unconsumed, opened packages of cannabis products — much like restaurant guests may not leave with opened alcoholic beverages.

These rules have been published in the New Jersey Register, effectively codifying them as written and paving the way for applications and licensing to begin. 

What do consumption lounges mean for NJ cannabis businesses?

Licensed cannabis retailers can pursue a social use license to open consumption lounges on the same site as their retail location, offering more opportunities to attract customers and sell products. For cannabis dispensaries looking to stand out from the crowd and offer something unique to attract more customers (and keep them on site longer), consumption lounges could be a big opportunity. 

According to NJ CRC Chief Counsel Christopher Riggs, an application process will begin soon. However, the state government’s website currently makes no mention of the social use license or where to apply. Commissioner Charles Barker added that the application process would include an “exclusive period for social equity, diversely-owned businesses,” which he said is a “critical component to establishing equity and leveling the playing field.”

Members of the NJ CRC suggested the addition of consumption lounges to the state’s growing cannabis industry would bolster tax revenues through additional sales and excise taxes on products sold, as well as the licensing fees and annual renewal fees businesses would pay to operate these lounges.

However, some retailers have pushed back against the regulations as currently written, suggesting the restrictions would make it difficult to turn a profit by hosting a social use space. Concerns include the restrictions on selling non-cannabis products, like food and beverages, and the availability of space at existing dispensary locations.

“From an operator’s perspective it’s hard to make money on that and to create that amazing environment,” Jonathan Bednarsh, co-founder of RIPT Dispensary, told PIX 11 when the NJ CRC first approved the rules. “Operators are going to struggle to have the space, or create a space if they can’t monetize the space.”

Other cannabis reform trends to watch in New Jersey

The Garden State is in for a big year when it comes to growing its cannabis industry and enacting reform policies. There are more than a dozen bills in the state legislature that could have a significant impact on New Jersey’s cannabis businesses and consumers, including:

  • Home grow rules: Senate Bill 1985 would legalize the cultivation of up to six cannabis plants for personal consumption and up to 10 plants for medical consumption for adults ages 21 years and older. A similar bill in the state Assembly (A414) would allow the cultivation of up to six cannabis plants, while S1393 and companion bill A846 would authorize the cultivation of medical cannabis.
  • Interstate commerce: A bill in the Senate, S2286, would authorize the governor to approve interstate commercial activity in certain instances. Interstate commerce is generally the domain of the federal government, which considers cannabis an illegal Schedule I drug under the U.S. Controlled Substances Act.

  • Financial institution protections: Assembly bill A901 would offer protections to financial institutions and insurance companies working with cannabis businesses, preventing them from being penalized by state regulators for working with the industry. Similar bills in both chambers, S1955 and A453, would focus on establishing further protections for insurers working with cannabis businesses. A Senate bill, S1126, would establish a state bank dedicated to handling cannabis funds.
  • Employer and employee protections: Competing bills would extend protections to employees who use cannabis or empower employers to prohibit cannabis consumption by certain employees. A2719 would prevent employers from penalizing employees who test positive for cannabis metabolites, but S677 would allow employers to prohibit cannabis in some circumstances. A2798 would permit law enforcement agencies to prohibit consumption by officers.
  • Medical cannabis taxation: Assembly bill A1105 would exempt medical cannabis products from sales and excise taxes, bringing down costs for medical cannabis patients.

Keep an eye on these bills and other reform efforts as 2024 progresses to see how New Jersey’s cannabis industry may evolve. As the young industry grows and changes, those who are most adaptable to evolving regulations will stand the best chance of success in the future.

Stay informed with CWCBExpo

To stay in the loop on all things cannabis in New York, New Jersey, and beyond, keep an eye on CWCBExpo’s monthly news roundups, blog, and social media channels. And if you want to connect with cannabis industry leaders and experts from around the nation, sign up to attend or exhibit at this year’s CWCBExpo at the Javits Convention Center in New York City on June 5 and 6, 2024. You’re sure to come away with new insights, an expanded network, and exciting stories about one of the fastest-growing industries in the country. 

 

10 Cannabis Tech Tools Shaping the Industry

From artificial intelligence (AI) tools to sophisticated supply chain management systems, the cannabis industry relies on some advanced technology to keep growing. Here’s a look at some of the technological systems shaping the cannabis industry, how they’re used, and the trends they’re driving as legal cannabis businesses expand nationwide. 

 

1. Seed-to-sale tracking and compliance systems

 

One tech platform every cannabis operator is familiar with is the seed-to-sale tracking system, which handles the complex task of monitoring the entire plant-touching supply chain for quality assurance and regulatory compliance. Seed-to-sale tracking systems catalog every cannabis product back to the source, from breeding to cultivation to manufacturing to the dispensary.

 

Popular seed to sale tracking systems include names like Metrc, Distru, GrowFlow, and Canix, though some states require the use of particular platforms. In New York, operators can use any software they want; the Office of Cannabis Management (OCM) uses BioTrack THC. Generally, these systems rely on Radio Frequency Identification (RFID) technology and software to track the flow of seeds, plants, flower, and manufactured products through the cannabis supply chain. 

 

2. AI budtenders

 

As the foremost touchpoint between customer and brand, budtenders shape consumer experience and influence brand loyalty to a significant degree. Some dispensaries are capitalizing on the rise of AI to improve the budtender-customer interaction, delivering accurate information in an easily understandable way.

 

A leading name in this new space is Pluggi, a platform that integrates with ecommerce platforms and offers customers the same type of personalized service they’ve come to expect from your human budtenders on-site. Pluggi relies on customers’ answers to questions to generate relevant product recommendations. Pluggi also delivers data-driven reports that can help you better understand shopper preferences, giving you all the information you need to enhance your marketing and customer service.

 

3. Extraction equipment

 

Extraction technology is not new; it’s been used in the food and beverage industry and the petrochemical industry for quite some time. However, their use in cannabis is relatively new, dating back to the 1970s with the advent of Butane Hash Oil (BHO). Today, extraction tech is widely applied in the cannabis industry and includes both solvent-based and solventless extraction equipment. It also includes devices like rosin presses, which are used to refine bubble hash into a thick oil known as rosin. 

 

Companies like Delta Separations, Precision Extraction, and Root Sciences produce extraction equipment from closed loop extraction systems to individual elements like short path distillation equipment or falling film evaporators. This machinery is essential to the cannabis extraction process, which is used in the production of concentrates as well as infused edibles, topicals, and other types of cannabis products. There are also simpler pieces of equipment from companies like Bubble Magic, which sells ice water extraction machines that don’t require as much engineering expertise to operate.

 

4. Menu providers

 

The menu is the dispensary’s focus, whether customers place pickup orders online or do in-store shopping. Ecommerce software companies have emerged to support dispensaries who want to offer their customers a familiar and convenient way to shop for cannabis, even if customers can’t have products shipped to their door. These services offer digital dispensary menus that integrate with other key software needed to manage a dispensary’s operations. They’re focused on providing a high level of ease of use for both customer and dispensary staff, queuing up orders so they can be filled quickly, accurately, and efficiently.

 

5. Personal consumption devices

 

The way we consume cannabis is also changing thanks to technological innovation. Among the more high-tech of these innovations are portable vaporizers, electronic dab pens and dabbing devices, and desktop vaporizers. These items eliminate the need for pipes and paper and use apps and other electronic means to create a truly customized consumption experience. 

 

Puffco is one such innovator in the personal consumption space. The company, which engineers its products in Brooklyn, is known for the Puffco Peak, an electronic dab rig that became seriously popular by making dabbing easy and accessible to every consumer. The company also offers accessories like the Hot Knife, an electronic dab tool that makes loading dab rigs an easier experience.

 

6. Cannabis security software 

 

Security is critical in cannabis. Whether you’re a cultivator with a sizable grow, a manufacturing operation producing seriously valuable extracts, or a dispensary with inventory and cash on hand, cannabis businesses are prime targets for burglary. In addition, state regulations usually include strict security requirements for cannabis facilities. That’s where cannabis security software comes in, helping operators manage their facilities and demonstrate full compliance with their state’s requirements.

 

7. Curing and drying equipment

 

After harvesting, cannabis needs to be cured and dried to preserve it and prevent contamination while it awaits transportation and purchase. Historically, this process could take weeks or even months to complete, but thanks to technology developed specifically for cannabis cultivators that timeline can be significantly sped up. This gets products out the door faster.

 

Companies like Cryo Cure, Cannatrol, and Happy Hydro have all developed equipment and processes that support more efficient and higher quality drying and curing. Cryo Cure, for example, offers machinery that preserves cannabinoids and terpenes while quickly bringing flower to its optimal moisture content levels in under 24 hours. Happy Hydro offers more conventional accessories like hanging dry racks and storage containers that support and improve the conventional drying and curing process.

 

8. Decarboxylation equipment

 

When using cannabis as an ingredient to create edibles or topicals, it first needs to go through a process known as “decarboxylation.” Put simply, this involves heating cannabis flower at low temperatures for a long time. Decarboxylation is the conversion of cannabinoid acids, like THCA or CBDA, into their more familiar activated forms, like THC and CBD. When cannabis is smoked or vaped, this happens before inhalation. But for ingestion, decarboxylation needs to be done first.

 

Cannabis manufacturing equipment providers sell industrial-sized ovens built for this task. Often called “decarbing ovens,” they come with settings designed specifically for cannabis. There are also many at-home gadgets, like the Ardent and the Levo, that simplify at-home decarboxylation

 

9. Retail management platforms

 

When you run a retail business, you need a point-of-sale system for tracking dispensary sales and managing transactions. You also need an inventory management system that can track your current stock, monitor how quickly SKUs are selling, and enable you to order more proactively so you never run out of your most popular products. You’ll also want to be able to review data about your sales and your customers so you can improve your decision making when it comes to things like marketing, inventory, and customer service. Cannabis retail management platforms have brought all these functions into one useful system that keeps dispensaries organized and efficient. 

 

 

Flowhub is a major retail management platform serving cannabis dispensaries with its software called Maui. This software allows dispensaries to accept payments for cannabis transactions and offers useful tools like customer loyalty programs and online order management. It also offers built-in compliance tools, so dispensaries can track their compliance and demonstrate it to regulators. Sales reports, custom user dashboards, and all the data flowing through the system is available on mobile devices as well, so company leadership can make informed decisions anytime, anywhere. These platforms also play an important role when it comes to cybersecurity in cannabis, safeguarding sensitive customer data from cyberattacks.

 

10. Nanoemulsion technologies

 

When making infused products like edibles and cannabis beverages, it’s important to ensure consumers have consistent, reliable experiences with dosages they can depend on. That means each product needs to not only contain the same amounts of cannabinoids in the same proportions as the last, but each part of each product needs to be homogenous and contain the same amount as well. Otherwise, each bite could be different, and consumers won’t be able to expect a consistent experience. That’s where nanoemulsions come in, and it’s thanks to emulsification technology that manufacturers can create them.

 

 

SōRSE Technology, for example, uses a water-soluble emulsification process that works with any oil-based ingredient to create emulsion formulations for cannabis brands. Their services promise product stability that provides for accurate, consistent dosing in cannabis products and homogeneity in each product, so customers can trust the labeling every time. Technology and innovative processes like these enable cannabis businesses to create repeatable, branded products that consumers can count on for a consistent experience no matter where they buy them.

 

Emerging tech propels the cannabis industry forward

 

The cannabis industry is an innovative and rapidly evolving space, often out of necessity thanks to decades of prohibition and the emergence of state-by-state supply chains with their own sets of rules and regulations. As cannabis businesses grow and face new challenges, technology companies come to the fore to help them get more done and keep on expanding. To meet some of the leaders in cannabis tech and the businesses successfully using their tools and platforms, join us for the next Cannabis World Congress & Business Expo (CWBCExpo) June 5 – 6 at the Javits Convention Center in New York City

Womxn Luncheon Montage, February 17, 2024

Licensing in NY, Cannabis in Germany, plus Womxn Luncheon with CWCBExpo

Introducing CWCBExpo’s New Podcast

Highest: In the Room

Highest: In the Room
A podcast series that discusses the business of cannabis in a LIT way

Reporting from the weed capital of the world, KymB interviews the power players in the wild industry of cannabis.

In Episode #1, KymB gets the “blunt” facts from the Beard Bros, Bill and Jeff Levers, on cannabis restrictions on Instagram and why cannabis media is an integral part of business.*

*Contains explicit language.

Highest In the Room, with KymB
New York State News

Judge Rules for NYS in Lawsuit

NYS has gotten over another hurdle in court. On February 2, Judge Nardacci ruled against plaintiffs citing unfair issuance of licenses that was based on the social equity criterion laid out in the Marijuana Regulation and Taxation Act passed on March 31, 2021. Previous lawsuits claiming similar complaints were settled. The result of the latest ruling by Judge Narducci is a good sign that NYS is continuing to move the industry forward.

Plan to Shut Down Illicit Cannabis Operations

In our January 2024 Newsletter, we noted that Governor Kathy Hochul is committed to shutting down illicit cannabis shops across New York State. The movement to get this done has taken off in recent weeks with several local lawmakers at the NY Assembly and Senate levels supporting legislation and funding targeted at the closing of illegal shops and providing more authority to NYC Mayor Adams and the NYPD to get the job done.

Queens Assemblywoman Jenifer Rajkumar has aggressively been pushing her proposal to shutter illegal cannabis operations across the city, while Queens Senate member Leroy Comrie has pushed to get the law into the budget. It is called the Smoke Out Law.

Spectrum News NY1

Dispensary Openings

The Adult-Use dispensary openings continue across NYS and NYC. Here are 18 of the most recent openings.

New York State Office of Cannabis Management NYS OCM

Legacy Dispensary

COLONIE | 1839 Central Avenue, Colonie, NY
Website: www.legacy-dispensary.com


High Stone
STATEN ISLAND | This is a temporary delivery only location.No in-person or pre-order sales are allowed at this location.
Website: www.highstone.nyc


Royale Flower
ALBANY | 350 Northern Blvd, Albany, NY
Website: www.royaleflower.com


Brownies
COLONIE | 1686 Central Avenue, Albany NY
Website: www.browniesbrand.com  


Northern Lights NY
MENANDS | 90 Broadway, Spc 8, Menands, NY
Website: www.nldispo.com/


Buddega NYC
WHITE PLAINS | This is a temporary delivery only location. No in-person or pre-order sales are allowed at this location.
Website: www.cannabisrealmny.com


The Grass Hole Cannabis
PLATTSBURGH | 779 State Route 3, Plattsburgh, NY
Website: www.thegrasshole.com


Cannavita
ASTORIA | 30-30 Steinway Street, Astoria, NY
Website: www.cannavita.us



Etain
WHITE PLAINS | 75 Mamaroneck Avenue, White Plains, NY
Website: www.etainhealth.com

The Emerald
BUSHWICK | 85 Suydam St, Bushwick, NY
Website: www.theemeralddispensary.com


NYCBUD

LONG ISLAND | 44-45 Vernon Blvd, Long Island, NY
Website: www.nycbud.com


Puffalo Dreams
BUFFALO | 900 Niagara Falls Blvd, Buffalo, NY [Corrected Address]
Website: www.puffalodreams.com


New Metro

BAYSIDE | 221-50 Horace Harding Expy, Oakland Gardens, NY
Website: www.newmetro.club


Public Flower

BUFFALO | 232 Allen Street, Buffalo, NY


Elevate

MOUNT VERNON |127 S Terrace Ave Mt. Vernon, NY
Website: www.elevatecannabisny.com/


Exit 31 Exotic

UTICA | 255 Genesee Street, Utica, NY
Website: www.uticacannabisco.com


Tiki Leaves

CONEY ISLAND | 1511 Neptune Ave., Brooklyn, NY


Silk Road NYC

QUEENS | 166-30 Jamaica Ave, Jamaica, NY
Website: www.silkroadnyc.com/

Licensing News

Some good news for NYS revenues: NYS’s total adult-use cannabis sales are climbing toward $200MM since MRTA was passed. As of this month, total adult-use sales reached $183MM, as reported by the Office of Cannabis Management and Governor Hochul.

Also this month, the NYS Office of Cannabis Management (OCM):

  • Issued over 100 licenses in mid-February including 38 new Retail Dispensary Licenses, and 26 Micro-business Licenses.
  • Approved Home Grow Cultivation Regulations
  • Opened a new application window for more type 3 processor applications and to allow conditional cultivators and processors to continue transition to non-conditional licenses
Seal of Governor Kathy Hochul
New Jersey News

New Jersey Closes in on $1B in Total Cannabis Revenue

The New Jersey Cannabis Regulatory Commission (NJCRC) reported on February 15 that there were 102 medical and adult-use dispensaries across the state. In addition, total sales for medicinal and adult-use cannabis sales were closing in at $1B combined. These milestones are very good news.

NJ Cannabis Regulatory Commission
Pennsylvania News

Governor Josh Shapiro Wants to Legalize Adult-Use Cannabis

Will Pennsylvania legalize adult-use cannabis anytime soon? Governor Ron Shapiro is supporting it and presented some key points during his February budget presentation as part of his efforts to legalize adult-use in PA. In his presentation he cited estimated cannabis revenues, social equity, and expungement of minor cannabis offenses and arrests. Not all groups in PA are supportive of the Governor’s efforts.

CBS News
Majority of U.S. Voters Favor Legalization

U.S. Voters Want Legalization

We highlighted in our January newsletter that the issue of de-scheduling vs. rescheduling cannabis as a Schedule 1 drug was heating up. A poll found that the call to de-schedule cannabis is overwhelmingly supported by both Democrat and Republican voters. The results of a poll featured in NORML.org, compiled by The Tarrance Group, showed that well over 50% of respondents want to see full legalization in all 50 states.

Ukraine Legalizes Medical Cannabis

Ukraine’s President Zelensky Signs Medical Cannabis into Law

On February 15, President Volodymyr Zelensky signed the December 21, 2023 bill that was approved by Ukraine’s Parliament. This new law will provide access for medical patients seeking treatment for a variety of conditions including PTSD. The war has created the need for medical cannabis to help treat the traumas of the war suffered by soldiers and citizens. Patients will need a prescription from a doctor to get the medical cannabis and to legally buy it. Recreational cannabis remains illegal. The new law takes effect in July 2024.

Germany Legalizes Adult-Use

Germany Legalizes Adult-use Cannabis

As of February 23, Germany became the third European country to legalize recreational use cannabis for anyone aged 18 or above.

CNN
Community News

Building Community Through Recognizing WOMXN Entrepreneurs

On Saturday February 17, CWCBExpo was honored to be the Nourishment Sponsor for the WOMXN Brunch. The brunch was expertly produced and organized by Solonje Burnett and Kymberly Byrnes (KymB). Solonje Burnett is Weed Auntie and Co-founder and Chief Culture & Community Officer of Erven. Kymberly Byrnes is Co-Founder and Chief Marketing Officer of TribeTokes, and Host of “The Highest in the Room” podcast. 

The luncheon took place in Williamsburg Brooklyn at the Moxie Hotel and was sold out. CWCBExpo was in attendance and is sharing some photos below. Thank you Solonje and KymB for making such a memorable afternoon.

Womxn Luncheon Montage, February 17, 2024

Womxn Luncheon, February 17, 2024. Clockwise from the top left, Solonje Burnett, Weed Auntie, Co-founder and Chief Culture & Community Officer of Erven, with Christine Ianuzzi, CEO, CWCBExpo; Kymberly Byrnes (KymB), Co-Founder and Chief Marketing Officer of TribeTokes; Women in attendance; “Local Roots” food table, the woman-owned small business which prepared the healthy, fresh and delicious lunch that was served at the event.

Check out the CWCBExpo BLOG

CWCBExpo blogs contain relevant, timely information.

Recent subjects include cannabis testing laboratories, packaging, facility security, and legalization and regulatory updates.

Lighting a Joint

This is the event you need to attend.

CWCBExpo, Cannabis Means Business, 11th Annual

June 5 – 6, 2024
Javits Convention Center, NYC

Crowds at Entrance, CWCBExpo NY 2023

Law Enforcement Groups Push for Rescheduling & More

Each month, Cannabis World Congress & Business Exposition (CWCBExpo) offers a convenient roundup of the biggest cannabis news stories and hemp headlines emerging across the nation. Get these updates in your inbox by subscribing to our email newsletter, or follow us on Instagram, LinkedIn, Facebook, or Twitter (now X) to get the most recent edition when it’s published.

 

February held some big headlines for the cannabis industry, including groundbreaking research into cannabinoids and terpenes, Vice President Kamala Harris meeting with pardon recipients, and law enforcement leaders advocating for cannabis rescheduling. Join us as we dive into the latest cannabis news nationwide and how it’s impacting the industry and consumers everywhere.

 

Law enforcement group pushes for cannabis rescheduling

 

A coalition of police chiefs and prosecutors, represented by the Law Enforcement Leaders to Reduce Crime & Incarceration (LEL), has called upon the Biden administration to reclassify cannabis under federal law. Led by prominent figures such as U.S. Drug Enforcement Administrator (DEA) Anne Milgram, the organization advocates for rescheduling cannabis to Schedule III. 

 

In a letter addressed to the administration, the coalition underscored the benefits of rescheduling, including the prioritization of limited public safety resources. “We believe that reclassification under schedule III would be an important step to help both federal and state law enforcement better prioritize limited public safety resources,” the LEL wrote in the letter. “Moreover, rescheduling would also allow legal markets to compete on a level playing field, potentially leading to greater reinvestments in critical programs that can bolster public safety.” 

  

The call from LEL comes as the DEA is mulling a proposal from the U.S. Department of Health and Human Services to reschedule cannabis as a Schedule III controlled substance. Rescheduling cannabis to Schedule III would represent a landmark step towards comprehensive federal cannabis reform. 

 

The letter from LEL is the latest in mounting pressure for regulators to consider cannabis reform. Last month, Congressional Democrats sent a letter to the DEA requesting cannabis be descheduled entirely, eliminating its status as a controlled substance altogether.

 

New study assesses cannabis compounds and the entourage effects

 

A recent study published in the journal Molecules delved into the intricate interactions between cannabinoids, terpenes, and other chemical compounds found in cannabis, shedding light on the so-called “entourage effect”, which describes the collaborative dynamics of these components and their combined effects. 

 

The study, published in January 2024, confirmed the concept of the entourage effect, which has often been controversial among researchers. The study emphasized that it’s not merely THC and CBD, but the complex interplay of molecules, that shape our individual cannabis experience. 

 

“In cannabis science, cannabinoids, terpenes, and flavonoids have often been overlooked, with much of the literature focusing predominantly on the major cannabinoids THC and CBD,” reports the team behind the new study. “However, emerging evidence suggests that these constituents, particularly cannabinoids and terpenes, play a substantial role in interacting and collaborating. This interplay gives rise to the diverse effects, benefits, and side effects observed among different cannabis strains, which can vary in the ratios of these components.”

 

The research represents a step forward in our understanding of cannabis and how it works. While much research is still needed, advancing our understanding of the entourage effect brings us a step closer to maximizing the therapeutic potential of the plant.

 

Kamala Harris reaches out to cannabis pardon recipients 

 

Vice President Kamala Harris’s office has been actively engaging with those who have received pardons for cannabis possession under President Biden’s clemency proclamations, aiming to ensure a smooth process and broader discussion into cannabis policy reform. 

 

Chris Goldstein, a prominent activist recently pardoned for a 2014 possession case, revealed that the vice president’s office contacted him and subsequently met with three staffers to discuss his certification experience, as well as cannabis reform proposals such as descheduling and expungement. 

 

Goldstein commended the office for their attentiveness and keen interest in understanding the nuances of cannabis policy reform. He raised the point that the pardons people received over possession did not clear their records, which still need to be expunged. He also noted that the office “absolutely heard that” and understood the “nuance” of the policy issue.

 

“I want to give them credit for this, because they were reaching out to pretty much anybody who they could who had gotten a pardon recently through the Department of Justice and trying to communicate with people about the pardons and make sure the process was going well,” he told Marijuana Moment. “It seemed like they were really invested in making sure that people had an easy process in getting the pardons and that it was easy to apply, it was a short waiting period, all those things.”

 

Poll find 17% of American adults consume cannabis 

 

According to a new Gallup poll, approximately 17% of American adults reported consuming cannabis, remaining relatively stable compared to the previous year’s 16% but significantly increased from just 11% in 2015.

 

“Age is a significant driver of the likelihood of smoking marijuana. About a quarter of young adults, those aged 18 to 34, say they smoke marijuana (26%), but reported use falls to 18% among adults aged 35 to 54 and is even lower, 11%, among adults aged 55 and older,” reads the Gallup analysis. 

 

Other standouts from the responses included:

  • Men (19%) are more likely than women (14%) to consume cannabis.
  • College graduates (9%) are about half as likely as those without a college degree (21%) to consume cannabis.
  • Democrats (22%) are more likely than Republicans (12%) to report consuming cannabis, with independents’ (17%) falling between them.

Exploring the future of cannabis with CWCBExpo 

 

As we wrap up February, one thing is clear: the future of cannabis is dynamic and full of promise. Looking ahead, we remain committed to collaboration, innovation, and advocacy as we shape a bright future for the cannabis industry. Stay up to date with our monthly news updates, or join us in person at CWCBExpo this June to network with industry leaders and learn from cannabis experts. 

Conditional Licensing and Cannabis Retail in NYS, CWCBExpo Seminar, June 1 2023

February 2024 Regional News Update: Milestones, Projections, and Partnerships

Each month, Cannabis World Congress & Business Exposition (CWCBExpo) offers a convenient roundup of the biggest cannabis news stories and hemp headlines emerging across the nation. Get these updates in your inbox by subscribing to our email newsletter, or follow us on Instagram, LinkedIn, Facebook, or Twitter (now X) to get the most recent edition when it’s published.

 

As February unfolds, the Northeast cannabis industry surges ahead. The landscape continues to shift in New York, with more than 100 new licenses marking a significant stride toward expanding the state’s market. Next door, New Jersey is expected to eclipse $1 billion in sales this year, breaking new ground for the Garden State’s cannabis industry. Meanwhile, in Pennsylvania, Gov. Josh Shapiro (D) has called for legalization, igniting conversations about the state’s potential entry into the adult-use market. Join us as we navigate through the latest milestones, regulatory advancements, and innovative proposals throughout the region.  

 

New York CCB approves over 100 new licenses 

 

The New York State Cannabis Control Board (CCB) made a milestone decision to approve 109 new licenses in the state. Notably, these are the first non-conditional licenses the state will issue, departing from the previous criteria under the Conditional Adult-Use Retail Dispensary (CAURD) program, which prioritized justice-involved individuals. Among these licenses, 38 are allocated for new retail dispensary ventures, while an additional 26 are designated for microbusiness operations, which vertically integrated cultivation, processing, distribution, and retail operations under one license.

 

 “Adult-use cannabis is a growing industry in New York that will help local economies across the state,” Gov. Kathy Hochul (D) said. “The approval of over 100 licenses is a good start and provides individuals with the opportunity to apply for licensing to help drive up local economies around them.”

 

The surge in licensing represents a substantial increase from previous numbers, nearly tripling the number of licenses since December. New York is now home to 70 licensed adult-use dispensaries, with more establishments poised to open soon. 

 

New Jersey sales predicted to surpass $1 billion in 2024

 

Jeff Brown, the executive director of the New Jersey Cannabis Regulatory Commission (NJ-CRC), is bullish on the state’s cannabis industry, projecting that 2024 will be the year when New Jersey exceeds the milestone of $1 billion in annual sales. 

 

Speaking at a public hearing, Brown emphasized the forthcoming regulations aimed at the expansion of edible offerings in the state, highlighting that these regulations would not only enhance consumer safety but also incorporate Good Manufacturing Practices (GMP) provisions to align with federal legalization bills. 

 

“It’s something that will set New Jersey’s market up to compete in decades to come,” Brown said during the hearing. “I’m not counting on federal legalization happening anytime soon, but nonetheless we want to make sure businesses in New Jersey are prepared to compete whenever that opportunity arises.”

 

Brooklyn Nets and New York Liberty partner with CBD company 

 

The Brooklyn Nets and the New York Liberty have made headlines by becoming the first professional basketball teams of the NBA and WNBA to join forces with a CBD company. Mynd Drinks, a hemp-based CBD sparkling beverages company, is set to collaborate with the iconic New York teams following the NBA’s decision to remove cannabis from its list of banned substances for players. 

 

“This gives us an anchor for the East Coast in terms of exposure, marketing, and expansion,” Mynd Drinks CEO Simon Allen said in a statement. “We’ve had tons of opportunities to work with different teams but what we really liked about both of the teams was they shared a lot of what our vision was.”

 

While specific details of the agreements are not all made public, reports state that Mynd Drinks will be available for purchase at all Nets and Liberty games. The company will also sponsor Liberty theme nights throughout the season. 

 

Pennsylvania governor pushes for cannabis legalization 

 

Pennsylvania Gov. Josh Shapiro (D) is urging state officials to seize bipartisan momentum and push forward with the legalization of cannabis in recent statements. Shapiro underscored the urgency of the matter, emphasizing that Pennsylvania’s neighboring states, including Ohio, have already embraced legalization, leaving the Keystone State at a competitive disadvantage. 

 

With an estimated loss of $250 million annually in potential revenue, the governor emphasized the tangible benefits of legalization, highlighting its potential to bolster economic development and fund crucial sectors such as education. 

 

“The reality is, as long as we have safeguards in place to make sure our children aren’t getting their hands on it — it’s just like, we don’t want our kids out drinking, right?” he said. “And a lot of that is going to be a burden on parents and schools and others to make sure we educate on that. Then I think this is something we’ve got to compete on.”

 

In a separate conversation WILK News Radio, Shapiro added that he’s personally “evolved on” the issue and wants a legal cannabis market rooted in the state. “[We are] focused on lifting up Pennsylvania businesses in the process — not these big national conglomerates — and we’re empowering people in local communities to it that I think some good can come from it.”

 

These statements come shortly after the governor included cannabis in his $48.3 billion budget proposal, calling for a 20% excise tax on legal cannabis and estimating that an adult-use cannabis industry in the state could bring in $14.8 million in tax revenue in its first year. Those new dollars would help pay for additional spending on public transit, economic development, housing, and health care, among other priorities.

 

Navigating the green together 

 

Adapting to the dynamic and evolving landscape of cannabis in the Northeast is essential for staying informed and ahead of the curve. Whether you’re a stakeholder, entrepreneur, or enthusiast, CWCBExpo ensures you have the insight and resources to navigate this burgeoning industry successfully. Subscribe to our newsletter or follow us on social media to stay updated and engaged with the latest developments shaping the future of cannabis in the Northeast and beyond. 

Vice President Kamala Harris Making Statement

What Would Federal Rescheduling Mean for Cannabis? 

Last year brought another wave of states that legalized cannabis either for medical consumption or adult use. Most states now support legal cannabis in some form, and public opinion is strongly in favor of both legal medical and adult use cannabis programs. 

Senate Majority Leader Chuck Schumer (D-NY) proclaimed he believes an end to the federal prohibition is finally within reach. However, outside of Congress, federal agencies are deliberating not whether cannabis should be legalized federally, but whether it should be rescheduled under the U.S. Controlled Substances Act (CSA) of 1970. But what exactly would federal rescheduling mean, and are we likely to see it anytime soon?  

How did we get here? 

Cannabis is considered a Schedule I substance under the CSA, meaning it is considered by the federal government to carry a “high potential for abuse, no currently accepted medical use in treatment in the United States, and a lack of accepted safety for use under medical supervision.” However, its status as a Schedule I substance is hotly debated — and currently under review.

A reconsideration of cannabis’s scheduling status began in October 2022, when President Joseph R. Biden, Jr. issued an executive order to federal health regulators, requiring them to “expeditiously” reevaluate the way the country regulates cannabis on the federal level and describing Prohibition as a “failed approach.” 

In August 2023, as part of that review, the Department of Health and Human Services (HHS) delivered a recommendation to the Drug Enforcement Agency (DEA) that they should reconsider the current classification of cannabis as a Schedule I substance. The letter, sent to Attorney General Merrick Garland and DEA Administrator Anne Milgram, advised that moving cannabis to Schedule III would “supersize” the industry by providing tax relief and further normalizing the market.

In January 2024, the DEA announced it would take HHS recommendations under advisement as the agency conducted its own review of cannabis’s current scheduling under the Controlled Substances Act. The agency noted that it held “final authority” on any rescheduling decision, not HHS or Congress. The agency is reportedly using a five criteria test to determine whether cannabis should be rescheduled.

While the DEA deliberates, the HHS released more than 250 pages explaining their rationale behind the recommendation to reschedule cannabis. Among those reasons are the fact that cannabis is currently used for medical purposes in the U.S. and has a lower potential for abuse than other drugs currently listed as Schedule I or Schedule II under the CSA.

A decision regarding cannabis’s scheduling under the Controlled Substances Act is expected from the DEA in the coming months. Until a decision is made, cannabis remains a Schedule I substance.

What would descheduling mean for cannabis businesses? 

There are two potential routes that legislators could take in regard to rescheduling cannabis. Descheduling would mean removing cannabis from the list of controlled substances altogether, a process that can happen either through legislation or through the executive branch. Rescheduling, on the other hand, would mean cannabis is moved from Schedule I to a lower schedule. In the HHS recommendation this would be Schedule III.

If either descheduling or rescheduling takes effect, perhaps the biggest impact is that IRS Section 280E would no longer apply to cannabis businesses in the U.S. Section 280E prohibits businesses that deal in Schedule I and Schedule II substances from deducting typical business expenses from gross income, which can seriously impact profitability. Descheduling or rescheduling cannabis to Schedule III would mean cannabis businesses could finally deduct normal business expenses, a matter that New York has already moved to address on the state level

Sen. Kirsten Gillibrand (D-NY) sent a letter to the DEA, stating that while she remains “under the strong conviction that marijuana should be descheduled entirely,” the agency should, “at a minimum,” move cannabis from Schedule I to Schedule III under the CSA.

Cannabis advocacy groups like the National Organization for the Reform of Marijuana Laws (NORML) believe that reclassifying cannabis to a lower schedule continues to misrepresent the plant’s safety relative to other controlled substances such as anabolic steroids and ketamine (Schedule III), benzodiazepines (Schedule IV), or even alcohol, which is not classified under the CSA. This is why NORML and many other advocates are pushing to deschedule cannabis entirely, providing state governments the ability to regulate cannabis as they see fit. 

How would rescheduling cannabis affect New York? 

While rescheduling cannabis would help legitimize the New York cannabis industry and reduce the stigma around consumers, without federal legalization, it’s uncertain exactly how it would affect the state. Although some are hopeful that rescheduling would allow for the transportation of products across state lines, interstate commerce would remain illegal for non-FDA-approved cannabis products. In other words, regardless of rescheduling, cannabis products would need to obtain FDA approval to cross state borders. 

Rescheduling cannabis could also improve access to banking and financial services, as some institutions might feel more confident about working within the industry. However, many payment processors have suggested they won’t support cannabis transactions until federal legalization. Additional legislation may help assuage those concerns, though, and it’s something that has been on Schumer’s radar. 

What does the SAFER Banking Act have to do with descheduling cannabis? 

A bipartisan piece of legislation known as the Secure and Fair Enforcement Regulation (SAFER) Banking Act could be the push the industry needs to make federal descheduling a reality, according to Schumer. The SAFER Banking Act, which passed in late September by a bipartisan majority in the Senate Banking Committee, would protect financial institutions that wish to work with cannabis retailers and give out more small business loans. 

While cannabis would remain federally illegal under the SAFER Banking Act, the law would resolve the tension between federal and state law concerning banking. Supporters of the act say that, if passed, it will have an almost immediate effect on public safety by reducing the number of burglaries that have plagued cash-heavy businesses.

Although earlier versions of the bill passed in the House seven times, they failed to make it through the Senate. Schumer plans to move the current bill, reintroduced in September 2023, forward to the Senate floor once they have enough Republican support. He did not specify a date.

Navigating the future with CWCBexpo 

The prospect of federally descheduling cannabis is not merely a shift in policy but a transformative catalyst for the entire industry. As we continue to follow changes, allow CWCBExpo to serve as your hub for staying up-to-date in New York and beyond. Stay informed, stay connected, and let’s shape the future of cannabis together! 

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