Yacht Party, Liberty View, 2023

Navigating Licensing, Taxes, and Legalization 

Each month, Cannabis World Congress & Business Exposition (CWCBExpo) offers a convenient roundup of the biggest cannabis news stories and hemp headlines emerging across the Northeast. 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.

Welcome to the April 2024 edition of our regional cannabis news update. In this month’s edition, we’re covering the latest updates shaping the northeast cannabis landscape, from New York’s progress in adult-use licensing to efforts in New Jersey to legalize home cultivation. Read on for more detail about what’s happening in the cannabis industry across the region.

New York State Cannabis Control Board approves 101 new adult-use licenses 

On April 12, the New York State Cannabis Control Board (CCB) approved 101 new adult-use licenses, bringing the total number of licenses granted in 2024 to 403. 

The breakdown of the 101 licenses approved includes the following types:

  • Adult-Use Cultivator License: 25
  • Adult-Use Distributor License: 11
  • Adult-Use Microbusiness License: 22
  • Adult-Use Processor License: 8
  • Adult-Use Retail Dispensary License: 25
  • Provisional Adult-Use Retail Dispensary License: 10

“With the Cannabis Control Board’s issuance of 101 adult-use cannabis licenses, New York’s legal cannabis industry continues to make significant progress with over 400 licenses issued in 2024,” said Governor Hochul. “Strengthening New York’s equitable cannabis industry and ensuring the hard-working small business owners operating in the legal market have the licenses to open are the best ways to protect the integrity of sales in New York.”

The CCB also passed a resolution empowering the Office of Cannabis Management (OCM) to issue provisional adult-use licenses to streamline the licensing process and promote industry growth. This update will allow provisional licenses to be awarded outside regularly scheduled board meetings. 

New Jersey lawmakers and activists push for home grow legalization 

New Jersey cannabis advocates and lawmakers are applying pressure to legalize home-grown cultivation of cannabis as neighboring states continue to move forward with similar measures. 

Currently, only individuals holding cultivator licenses are permitted to grow cannabis under state law. Individuals, including medical cannabis patients, cannot grow their own plants for personal use in New Jersey. Growing your own cannabis remains a third-degree felony. By contrast, in New York, patients and their caregivers are allowed to grow a limited amount of plants.

Senate President Nicholas Scutari (D) has been a prominent figure in expressing reservations about a home-grow program, citing concerns that it could hinder the growth of the legal cannabis industry and inadvertently bolster the underground market. 

Critics, however, including Chris Goldstein from the National Organization for the Reform of Marijuana Laws (NORML), argue that such hesitancy is misplaced. This highlights the frustration among small business owners, consumers, and patients. Goldstein and other advocates have taken to protesting in front of the New Jersey State House in Trenton to challenge the state and Scutari’s stance. 

“The small business owners I talk to, the consumers, the patients, they say he’s off base,” said Goldstein. “And again, the delay has been really terrible for New Jersey.”

Study finds cannabis could bring $41 million in tax revenue to Pennsylvania in its first year

A study conducted by Pennsylvania’s Independent Fiscal Office (IFO) found the state could eventually generate $271 million in annual tax revenue through legalization of cannabis as proposed by Gov. Josh Shapiro. The estimate takes into account a 20% excise tax on wholesale cannabis alongside revenue from state sales tax. In the inaugural year of legalization, Pennsylvania could expect to see approximately $41 million in tax revenue, the report reads.

The IFO analysis highlights the fact that neighboring states have already enacted legalization measures, potentially limiting Pennsylvania’s revenue as customers seek products across state lines. 

“Currently, all border states except West Virginia have legalized and imposed tax on adult recreational use cannabis. These taxes were enacted recently in Ohio (2023), Maryland (2023), New York (2021), and New Jersey (2020),” reads the report. “Because nearly all border states already tax recreational cannabis, the estimate is not increased for cross border sales that may have occurred in other states that were first to tax recreational marijuana in a region.”

Still, the report suggests that legalization could be a boon for Pennsylvania’s public coffers, adding momentum to the growing cannabis legalization movement in the state’s capital.

Forge cannabis connections at CWCBExpo 

For those seeking to stay informed, network with industry leaders, and continue exploring the latest innovations, there’s no better place than CWCBExpo. Whether you’re a seasoned entrepreneur, a budding startup, or simply curious about the industry, we offer a platform to connect, learn, and grow. Register for CWCBExpo today to dive deeper into the world of cannabis and shape the future in the Northeast and beyond. 

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

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