June 4 - 5, 2025
Javits Convention Center

The Illegalization of Cannabis: How We Got Here, Where We May Be Going

The Illegalization of Cannabis:
How We Got Here, Where We May Be Going

Tune In to the WNYC Archives

While business owners, investors, medical professionals, and activists look toward the prospect of rescheduling, it begs the question of how did cannabis become a Schedule I drug in the first place? It has been a Schedule I drug since 1970, when Congress enacted the Controlled Substances Act (CSA). With that, the modern war on drugs was born and it has continued to proliferate for decades since.

In 1969, NYC’s own former Mayor Ed Koch, at the time a US Representative, held a conference attempting to classify cannabis differently than what it is today. A broadcast from the archives of WNYC, “Tensions High at 1969 Conference on Marijuana” is quite informative and highlights the history of how cannabis landed on Schedule 1.

Federal Rescheduling

Comment Period to Federally Reschedule Cannabis

At our June CWCBExpo New York Conference Program, we highlighted rescheduling cannabis from a Schedule I drug to Schedule III drug and its implications for the cannabis industry. The Justice Department’s proposed rule change to reschedule cannabis requires a public comment period. The deadline is July 22, 2024.

How to Submit Comments

The public comment period runs through July 22, 2024, and comments can be submitted electronically through their portal. Get your comments in

Why is Rescheduling So Important for Business?

Hear it concisely stated from CWCBExpo speaker Matt Karnes, Founder, GreenWave Advisors.

“The re-classification from Schedule I to III is significant because it removes the punitive 280E tax burden that cannabis operators have had to endure. As a result, cash flow profiles are poised to accelerate at a time when capital is scarce. This marks an attractive entry point for investors as valuation multiples are on the cusp of meaningful expansion.”

Matt Karnes, Founder, GreenWave Advisors

Matt Karnes, Founder, GreenWave Advisors
New York State Cannabis News

Licensing News from the NYS Office of Cannabis Management and Cannabis Control Board

In our May Newsletter, we highlighted the operational changes that governor Hochul started to make at the Office of Cannabis Management (OCM) since the final report from Jeanette Moy, the Commissioner of General Services. Significant changes and announcements in management at the OCM continued this June. NYS Governor Kathy Hochul appointed the following individuals into roles that she expects to help run the OCM more effectively and efficiently:

  • Felicia A. B. Reid has been appointed Executive Deputy Director and Acting Executive Director.
  • Susan Filburn has been appointed Chief Administrative Officer.
  • Jessica Woolford has been promoted to the position of Director of External Affairs.

NYS Retail Cannabis Taxation Rules

More action at the OCM pertains to the taxation of retail cannabis. The OCM has reformed the taxes associated with retail cannabis sales including:

  • Repealed the THC tax
  • Excise tax on medical cannabis has been reduced to 3.15%
  • Other taxes remain in effect such as the wholesale tax, the local tax, and the state tax

Illicit Shops Being Shut Down

NYS and NYC continue to see more legal dispensaries open up and more illicit shops shut down. By June 18, Governor Hochul’s appointed NYS Task Force closed down 114 illegal cannabis shops. This helps increase sales at legal dispensaries and builds a stable and legal cannabis industry throughout the state.

New York State Government

Recent Adult-Use Dispensary Openings

Terrapin Greens LLC

(dba The Travel Agency Fifth Avenue)
NEW YORK CITY | 587 Fifth Avenue, New York 10017
Website: thetravelagency.co

Gratitude Buds
FISHKILL | 814 NY-52, Fishkill 12524
Website: gratitudebuds.com

SESH NYC
BRONX | 4219 Webster Avenue, Bronx 10470
Website: myseshnyc.com

Air City Cannabis
UTICA | 1707 Oriskany St W, Utica 13502
Website: aircitycannabis.com

NY Elite Cannabis
QUEENS | 4215 Bell Boulevard, Bayside 11361
Website: nyelitecannabis.com

Nicklz
NEW YORK CITY | 797 8th Avenue, New York 10019
Website: nicklzny.com

Bedford Club
BROOKLYN | 1102 Bedford Ave, Brooklyn, NY 11216
Website: bedfordclub.com

Update Exotics
NIAGARA FALLS | 9200 Niagara Falls Blvd, Niagara Falls 14304
Website: upstateexotics716.com

The Higher Co.
SYRACUSE | 123 E Willow Street, Syracuse 13202

More NYS Licenses Issued

The positive news continued all through June and what NYS has been doing to build its cannabis industry statewide. An additional 105 cannabis licenses were issued across various types including, Adult-Use Retail, Cultivator, Distributor, Processor, and Microbusiness.

Kentucky Cannabis News

Cannabis License Application Period Opens July 1

Applications to get a license for medical cannabis businesses begins July 1, 2024. Applications can be submitted via the Kentucky state government portal. Several medical license types will be awarded including, Cultivator, Processor, Safety Compliance Facility, and Dispensary.

Team Kentucky
Ohio Cannabis News

Ohio Approves First Adult-use Dispensary Licenses

Ohio became the 24th state to legalize the adult-use of cannabis on November 7, 2023. This June, Ohio has approved the first licenses for adult-use dispensaries. They issued 62 provisional licenses and 31 dispensary licenses across Ohio.

Ohio Capital Journal

Ohio Now Taking Applications for Dispensary Licenses

On June 7, Ohio opened its window to apply for a recreational dispensary license. Medical dispensaries in Ohio are also eligible to apply to sell recreational cannabis is to adults 21 or older, effectively a dual-license.

NBC4i
Pennsylvania Cannabis News

Pennsylvania Introduces Cannabis Legalization Bill

Pennsylvania wants to join the cannabis industry and also pursue expungement for prior cannabis convictions with a newly proposed legalization bill.

Pennsylvania Capital Star
Maryland Cannabis News

Maryland Issues Pardons for Misdemeanor Cannabis Offenses

Maryland is among the 24 states that have legalized adult-use cannabis. Maryland Governor Wes Moore issued 175,000 pardons for misdemeanor related cannabis offenses on Monday June 17, 2024. This is a giant step toward trying to help those who have been harmed by the war on drugs. As this action by Governor Moore is welcomed, the damage may never be undone for most, even with a pardon.

Delaware Cannabis News

Delaware Expands Its Medical Cannabis Program

Delaware expanded its medical cannabis program to allow physicians to make medical cannabis accessible a wider range of patients who may benefit from it. In addition, Delaware allows registered patients who are from other states to access Delaware dispensaries.

Netherlands Cannabis News

“Coffee Shops” to Try Quality Regulated Marijuana

The Netherlands is conducting an interesting experiment with the goal of providing options for “coffee shops” in the Netherlands to buy quality weed within a regulated network of growers. This would make both quality and quantity accessible to the “coffee shops” without relying on illegal weed. The regulated program launched in late 2023 and is expanding from two cities to ten cities and 80 “coffee shops” across the Netherlands.

Slovenia Cannabis News

Slovenian Citizens are in Favor of Cannabis Reform

Recently, Slovenian voters gave their opinions about cannabis reform proposals that were non-binding and had no guarantee that they would become law. The two measures that were “voted” on included opinions on home grow for medical patients, and home grow of cannabis plants for personal use. In both instances, the support was over 50% for each.

Beard Bros Pharms
CWCBExpo Thanks PROTEUS 420
Exhibitor, Women’s Luncheon Sponsor, Women’s Pavilion Sponsor
Why Should You Exhibit at CWCBExpo New York 2025?
Hear what Dawne Morris, Proteus420’s Co-Founder & CEO said about CWCBExpo 2024:

“Attending CWCBExpo was an incredibly enriching experience, making it the most beneficial and rewarding show we’ve participated in within the cannabis industry.

“The event was meticulously organized, facilitating meaningful business-to-business interactions and offering valuable insights into the latest trends and innovations. The vibrant and inclusive atmosphere fostered a strong sense of community, bringing together passionate professionals dedicated to advancing the cannabis sector. The knowledge and connections we gained have already started to benefit our business.

“We highly recommend CWCBExpo for anyone seeking to deepen their engagement with the cannabis community and explore new business opportunities.”  – Dawne Morris, Co-founder, PROTEUS420

Proteus420
Dawne Morris
PROTEUS420 exhibit booth, CWCBExpo NY 2024

THIS MONTH’S CWCBExpo NY 2024 ARCHIVED VIDEO

“Fireside Chat with Chair Wright of the New York State Cannabis Control Board”

In this fireside chat, recorded at CWCBExpo, June 5, 2024, we get the current status of New York State’s market and regulations. Front and center is the vision that Chair Wright sees for the NYS cannabis industry amid the DEA moving forward with rescheduling cannabis from a Schedule I drug to a Schedule III drug.

This session was moderated by Will Yakowicz, Staff Writer, Forbes; with Precious Hester Brown, Founder, CEO, Entertaining & Elevating With Cannabis; Ariel Palitz, Founding Director, NYC Mayors Office of Nightlife;  and “Hawaii” Mike, Founder, Chef for Higher

NYSOCM Chair Tremaine Wright and Kristan Jordan

((from the left) Tremaine Wright, Kristin Jordan

The CWCBExpo BLOG: Timely News & In Depth Articles

CWCBExpo blogs contain relevant, timely information. Recent subjects include cannabis research updates and Pennsylvania’s preparation of an adult-use cannabis bill.

Couple enjoying a smoke

Don’t miss out. Get prime exhibit space now.

CWCBExpo, 11th Annual
June 4 – 5, 2025
Javits Convention Center, NYC

 

PA Mulls Adult-Use as NY Expands Licenses

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. 

 

June 2024 was a dynamic month for cannabis news across the Northeast. From big strides toward potential adult use legalization in Pennsylvania to a key expansion of New York’s adult use market, this month’s update underscores the transformative potential of legalization not only economically, but also in fostering safety, equity and innovation. We’re also looking back at another great year for CWCBExpo and thanking everyone who joined us earlier this month. Let’s dive in!

 

CWCBExpo 2024 was a resounding success 

CWCBExpo kicked off with a bang on June 4, featuring pre-show events and workshops on topics like dispensaries, cultivation, and more. The expo floor, open from 10 am to 5 pm over two days, showcased a range of exhibits presenting the industry’s latest products, services, and technologies. The programming offered informative sessions on everything from regulatory updates to investment strategies and market trends. 

 

Notable highlights included Glenna’s Cannabis Creations, Let Mom Sleep, and HappySap CBD-infused Vermont maple syrup. Dispensaries like The Other Side Cannabis from Jersey City represented the local area, while companies like GrowPros Solutions and TrufflyMade showed off their products and services. 

 

This year’s expo guest of honor was Josh Kesselman, founder and CEO of HBI International, known for the popular RAW Rolling Papers. 

 

“The CWCBExpo was RAWesome! I was honored to give the keynote in my birthplace of New York City, which I consider the birthplace of RAW. I believe that New York is the epicenter of cannabis,” Kesselman shared with Cannabis Now. “Which is why it was so important to me that I speak with our entrepreneurial market makers and do my best to help guide them through this transitional period, towards a New York cannabis market that provides opportunities to all of us. We all get higher together, especially when you have a New York State of mind!”

 

PA lawmakers preparing recreational cannabis bill 

In Harrisburg, PA, lawmakers are gearing up to introduce a new bill aimed at legalizing cannabis for adult use in Pennsylvania. The proposed legislation seeks to eliminate the illicit market, foster the growth of small businesses, and provide avenues for expunging certain cannabis-related convictions. 

 

Additionally, it: 

 

  • Establishes robust guidelines for the labeling, packaging, and advertising of products to ensure that products are not marketed to children and adolescents;
  • Implements a “clean slate” policy and criminal justice reforms for residents with cannabis-related convictions;
  • Provides funding and support for law enforcement to enforce cannabis regulations;
  • Provides funding for local municipalities with cannabis businesses;
  • Leverages our agricultural infrastructure and supports local farmers;
  • Generates new revenue for the state and creates jobs.

“I think it’s well past time for us to legalize cannabis,” said State Representative Emily Kinkead, a Democrat representing Allegheny County and prime sponsor of the soon-to-be-introduced bill. “The governor has estimated that it would bring about $500 million within five years,” she said. “I think that’s actually a pretty conservative estimate.”

 

Gov. Kathy Hochul announces more adult-use licenses 

New York Gov. Kathy Hochul (D) unveiled an expansion of New York’s adult-use cannabis sector at the latest Cannabis Control Board (CCB) meeting. The board approved 105 adult-use cannabis licenses across all factions of the industry, setting the stage for increased economic activity and innovation within the market. The breakdown of the 105 license types approved includes:

 

  • 25 Adult-Use Cultivator Licenses
  • 22 Adult-Use Distributor Licenses
  • 22 Adult-Use Microbusiness Licenses
  • 19 Adult-Use Processor Licenses
  • 17 Adult-Use Retail Dispensary Licenses 

The CCB also approved a resolution to adopt the following regulations for home-grow: 

 

  • Adults can grow up to six plants individually.
  • Maximum of 12 plants per household.
  • Registered medical cannabis patients can have a designated caregiver grow on their behalf, provided no one can exceed the maximum of 12 plants per household.

“New York is building a robust and equitable legal market that is driving significant economic growth within our communities,” Governor Hochul said in a statement. “The issuance of 105 additional adult-use licenses is just the next step in developing the nation-leading industry New Yorkers expect and deserve.”

 

PA could see up to $2.8 billion in adult-use sales in first year

According to Marijuana Moment, reports indicate that PA could experience a substantial economic benefit from legalizing adult-use cannabis, with projected sales ranging from $1.7 billion to $2.8 billion in the first year alone. Collaboratively produced by advocacy group Responsible PA and FTI Consulting, the analysis forecasts potential tax revenues of up to $720 million through a combination of retail sales and excise taxes. Moreover, legalization could generate between 26,250 and 44,500 new jobs, drawing comparisons from other states and insights from PA’s existing medical market. 

 

“Nearly two-thirds of the jobs supported by the adult-use market would be direct cannabis jobs, with the remaining third supported indirectly or through induced spending,” states the report.

 

Stay connected with CWCBExpo 

Stay informed year-round by subscribing to the CWCBExpo email newsletter or following us on social media, where we continue to track and analyze the evolving landscape of cannabis legalization and business development across the region.

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

Developments in NJ, NY and PA

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.

 

 

What’s new in Northeast cannabis? Although we’re just two short weeks from CWCBExpo 2024, where you can hear from the industry’s leading experts in person on the latest, get up to speed as you get your walking shoes and business cards ready to roll.

 

 

New Jersey senators approve bill for cannabis regulators to oversee intoxicating hemp-derived products

 

 

New Jersey senators approved a bill, NJ S3235, that would extend the oversight of cannabis regulators to include intoxicating hemp products. The proposed legislation would establish regulations for the production and sale of hemp products containing less than 0.5 mg THC per serving, effectively bringing them under the purview of the state’s Cannabis Regulatory Commission (CRC)

 

Under the new bill, these products would be exclusively sold in licensed dispensaries alongside cannabis. The legislation also seeks to amend the existing NJ Farming Act to impose limits on THC content in hemp products.

 

“The main intent… is that there is a phenomenal amount of unregulated, unlicensed, untested cannabis products on gas station shelves and convenience store shelves, and they don’t go through any regulated process.” said Scott Rudder of the New Jersey CannaBusiness Association about the legislation. “Teens have access to this, and this bill attempts to capture that to prevent that.”

 

 

New Jersey bill would allow state officials to cap medical cannabis prices

 

 

NJ Sen. Troy Singleton (D-7) introduced legislation that would grant the CRC the power to implement price caps on medical cannabis products if necessary. Modeled after Pennsylvania’s statute, the bill empowers the commission to intervene when prices are deemed “unreasonable and inconsistent” with actual costs, allowing for price adjustments at six-month intervals.

 

The price of medical cannabis has long been an area of focus for patient activists in the state. New Jersey’s medical cannabis prices were among the highest in the United States for several years. While they have decreased since adult-use cannabis stores began to open, average prices are still higher than they are in other states.

 

Chris Goldstein of NORML, who tracks cannabis prices in New Jersey and Pennsylvania dispensaries, said it’s been difficult to watch legal cannabis in other states become more affordable while NJ’s prices remain sky-high.

 

“Unfortunately, we’ve been sold the same promises for almost 13 years that prices would come down, and there was more competition and more businesses, but the same businesses have been here the whole time, and prices remain remarkably similar,” Goldstein said to Marijuana Moment.

 

 

NYC Mayor Eric Adams orders the closure of 75 unlicensed cannabis shops

 

 

A joint task force led by the New York City Sheriff’s office led to the closure of 75 unlicensed dispensaries in New York City, totaling more than 3,800 violations and nearly $6 million in civil penalties.

 

Called “Operation Padlock to Protect,” the joint operation between the NYPD, the sheriff’s office, and the New York City Department of Consumer and Worker Protection (DCWP) conducted 150 inspections across four days in early May. The results of the operations were announced on May 14th.

While not insignificant, the enforcement efforts are a drop in the bucket. According to city agencies, there are an estimated 8,000 unlicensed cannabis shops across the five boroughs.

 

 

PA GOP senator says the state is ‘getting close’ to legalization

 

 

Senator Dan Laughlin (R-49) asserts that the Keystone State is edging closer to the long-awaited legalization of cannabis. However, Laughlin emphasizes that achieving this milestone requires collaborative efforts from key stakeholders, urging House and Senate leaders to engage in constructive dialogue with the governor to reach a consensus.

 

Speaking at a rally organized by ResponsiblePA, Laughlin joined forces with Senator Sharif Street (D-3) and other advocates to champion the push for legalization. He highlighted regional dynamics and recent federal rescheduling actions as catalysts for momentum, but noted that the Pennsylvania legislature is still several steps away from more action.

 

“We’re getting close, [but]…I don’t think we’re going to get this done until the leaders of the House and Senate sit down with the governor of Pennsylvania and work it out,” Laughlin shared.

 

 

Get the latest IRL at CWCBExpo

 

 

CWCBExpo is your premier destination to learn straight from the industry’s top experts. Stay informed and connected with the most current news and insights through our comprehensive coverage — and don’t miss out on learning in person at our June 2024 conference.

 

Our Industry’s Biggest Holiday, Legalization, Enforcement Authority and MORE

Our Industry’s Biggest Holiday, Legalization, Enforcement Authority, Spring is Here, Opportunity…Bring It All On!

“Unlicensed dispensaries have littered New York neighborhoods, blatantly circumventing our laws and selling potentially dangerous products. Enough is enough. I promised to protect our communities and hard-working, legal cannabis licensees by expediting the closure of illicit storefronts. I’m proud to stand up and say we got it done.”

 

New York State Governor Kathy Hochul

 

NYS Gov Hochul and NYC Mayor Adams
NY Governor Hochul (right) unveils new initiatives to shut down illicit cannabis operations and protect the legal marketplace. NYC Mayor Adams is on the left.

New York State (NYS) Governor Kathy Hochul and the NYS Legislature vowed to support and fund the closures of the illicit cannabis smoke shops across NYS and New York City (NYC) – and they have included funding in the 2025 NYS budget to do it. The approved budget that was passed this April vows to shut down illegal cannabis operations. An immediate action of this approved budget is that NYC Mayor Eric Adams is getting the immediate authority to use New York City’s enforcement powers to inspect, issue violations, and seize cannabis and padlock stores.

 

“New Yorkers are fed up with illegal smoke shops and their unlawful business practices, but our administration worked hard to make our voices heard in Albany, and working with Governor Hochul and our state partners, we are proud to say we got it done. New York City will finally be able to use the full force of the law to inspect, enforce, and shut down illegal dispensaries. These measures, combined with our already robust enforcement efforts, will help keep the playing field level and push back against the quality-of-life issues that have resulted from the proliferation of illegal smoke shops. We will continue to work with our partners in Albany to give aspiring entrepreneurs, especially those who have been justice-involved, a chance to succeed.”

NYC Mayor Eric Adams
4/20 Love Story

This April’s 4/20 had numerous events all over. We share one New York 4/20 love story that celebrates the union of two people who wed on 4/20/24 while highlighting the cannabis plant.

On 4/20, the wedding of Evan Ross Katz, writer and podcaster, and Billy Jacobson, an engineer, took place in Chelsea in New York City. Congratulations!

The New York Times
Love

Dispensary Openings

April saw many dispensary openings across NYC and NYS. Congratulations to the family-owned dispensary “Big Gas” which is the 100th adult-use in-store sales cannabis dispensary to open in New York. They are located in New Paltz.

Below are some of the many openings in April.

Evergreen Retail
FINGER LAKES | 51 N. Main Street, Brockport 14420
Website: www.evergreennyretail.com     

Platinum Leaf
ROCK HILL | 196 Rock Hill Drive, Rock Hill 12275
Website: www.theplatinumleaf.com   

Late Bloomers NYC
RIDGEWOOD | 57-01 Myrtle Avenue, Ridgewood 11385
Website: www.latebloomers-nyc.com

 

Flower Power Dispensers
NEW YORK CITY | 22 West 66th Street, New York 10023
Website: www.flowerpowerdispensers.com    

 

Devil’s Lettuce
WEST SENECA | 650 Orchard Park Road, West Seneca 14224
Website: www.devilslettuce.net


Planet Nugg
FARMINGDALE | 2043 Wellwood Avenue, Farmingdale 11735

Website: www.planetnugg.com   


East Leaf Dispensary

CHEEKTOWAGA | 2442 Clinton Street,
Cheektowaga 14224


Loudpack Exotics
SYRACUSE | 6606 Kinne Road, Syracuse 13214
Website: www.loudpackexotics.com

Mary Janes – A Legacy 2 Legal Dispensary
BUFFALO | 440 Normal Avenue, Buffalo 14213

Leafology Cannabis Company
WHITE PLAINS | 244 Main Street, White Plains 10601
Website: www.leafologycannabiscompany.com

Misha’s Flower Shop
BROOKLYN | 299 Knickerbocker Avenue, Brooklyn 11237
Website: www.mishasflowershop.com

Canna Life NY Inc (dba Hii)
BROOKLYN | 152 Bedford Avenue, Brooklyn 11249
Website: www.hiinyc.com

Purple Plains
POUND RIDGE | 32 Westchester Avenue, Pound Ridge 10576
Website: www.purpleplains.com

Big Gas Dispensary (the 100th Adult Use Dispensary to Open in New York)
NEW PALTZ | 98 N Chestnut Street, New Paltz 12561
Website: www.biggasdispensary.com


CONBUD (Canna Summit)

BRONX | 2412 Third Avenue, Bronx 10454
Website: www.conbudbx.com


Blue Forest Farms Dispensary

NEW YORK CITY | 122 E 25th Street, New York 10010
Website: coming soon

The Weed Shoppe
STATEN ISLAND | 4906 Arthur Kill Road, Staten Island 10309

Elevate Soho Cannabis
NEW YORK CITY | 481 Broadway, New York 10013
Website: www.elevatesohocannabis.com

NYC Licensing News

This month, the NYS Office of Cannabis Management (NYSOCM) was given the authority by the Cannabis Control Board (CCB) to issue 101 new provisional adult-use licenses to applicants across several segments of the supply chain including: retailers, microbusinesses, cultivators, processors and distributors. The measure was granted during an April 11 meeting of the CCB. This new authority allows the NYSOCM to grant  provisional licenses faster but ultimately, the CCB will still have to approve the final license.

The latest news from the NYSOCM for April includes the stats below since March 2021 when the NYS Marijuana Retail and Taxation Act (MRTA) passed:

  • Total Legal Revenue Sales have reached an impressive $263MM
  • 403 Adult-use Licenses have been awarded
  • Approximately 7,000 jobs across NYS have been created
  • Plus many more
NYS OCM Office of Cannabis Management
New Jersey News

New Jersey Celebrates Cannabis Milestones

This April 2024 marks a 3-year milestone for the New Jersey Cannabis Regulatory Commission, while celebrating a 2-year milestone for recreational cannabis sales. As part of their impressive achievements, in 2023 the NJCRC reached over $800MM in cannabis sales and expects to reach $1B in 2024.

For more information on the accomplishments that the CRC and the New Jersey cannabis industry have made regarding licensing, social equity, dispensary openings, ancillary services, their medical cannabis program, and plans for consumption lounges, click here.
 

 

NJ Cannabis Regulatory Commission
Celebrating three years of growth and equity in New Jersey cannabis
Nationwide News

Federal Regulatory News: Descheduling vs. Rescheduling

The buzz about descheduling and rescheduling of cannabis continues and will continue until the DEA makes a decision. Among the latest developments around descheduling is the formation of a legislative group who are pushing to have marijuana removed from Schedule 1. The group sent a letter requesting the descheduling to Attorney General Merrick Garland and to Anne Milgram of the DEA.

The group of signers of this letter includes:

  • Senator Elizabeth Warren of Massachusetts
  • Senator John Fetterman of Pennsylvania
  • Representative Barbara Lee of California
  • Senator Chuck Schumer of New York
  • Senator Bernie Sanders of Vermont
  • Senator Kirsten Gillibrand of New York
  • Senator Cory Booker of New Jersey
  • Representative Earl Blumenauer of Oregon
  • …and others

Cannabis Industry Stats

The editors of CWCBExpo want to share an industry statistics this post from Lookah.com. Lookah has gathered extensive stats about cannabis and where it is headed in 2024. It’s very interesting.

Lookah
Featured Interview:  Dawne Morris

Dawne Morris – CEO, Co-Founder, PROTEUS Business Solution, PROTEUS420

This month, we feature a brief interview with Dawne Morris, Co-Founder and CEO of Proteus420, an online enterprise resource planning (ERP) system for the cannabis industry. Dawne is a nationally-recognized cannabis entrepreneur who has been named a Top Women to Watch in Marijuana Venture magazine.

An entrepreneur, a technologist and an advocate, Dawne is a champion of our industry, of women and of the cannabis community. We share our conversation below.

CWCBExpo – Did you ever doubt yourself and how did you overcome that self-doubt?

Dawne – Being a woman in the predominantly male sectors of cannabis and technology has presented numerous moments where self-doubt could have crept in. However, I make it a point not to entertain those doubts. As a professional at the helm of a business, my focus is on running my company efficiently; I don’t have the luxury of time to prove myself to others. Whenever I face uncertainty, I rely on my expertise and knowledge, reminding myself of the path I took to get here. My primary aim is to stay focused and achieve my goals—recognition from others, while appreciated, is secondary.

Dawne Morris
Proteus420

“I don’t have the luxury of time to prove myself to others. Whenever I face uncertainty, I rely on my expertise and knowledge, reminding myself of the path I took to get here.”

CWCBExpo – Who was your role model growing up and what impressed you most about that person?

Dawne – My greatest influence has undoubtedly been my father, a skilled cannabis grower who deeply educated me about the plant’s healing potentials. Growing up as a proponent of cannabis, we were cautious to keep our discussions within the home due to potential backlash. Unfortunately, my father passed away six years ago, and expanding our business into the cannabis sector has been a way to honor his legacy. It’s not just about business growth; it’s about continuing his advocacy and educational efforts in a field where I truly thrive. As the world became more accepting of cannabis, my husband and I recognized the opportunity to integrate this personal mission into our professional endeavors.

CWCBExpo – Who is your best friend – OK – who are your “2 besties”?

Dawne – My husband David is undoubtedly my best friend. We’ve experienced so much together, and each morning I wake up eager to face new challenges and adventures alongside him. Additionally, I consider my granddaughters as my other best friends—so technically, I have three best friends. They inspire me daily to be a better person, someone they can admire and learn from. Watching them grow has been one of the greatest lessons of my life, and I cherish every moment with my three best friends!

CWCBExpo – You have been a champion of women, tech, and cannabis as you worked your way up, and you are a true believer in community. What advice do you have for women entrepreneurs in our industry?

“This journey isn’t always easy, but it is rewarding, especially when we lift each other up and champion each other’s successes.”

Dawne – I’ve always been passionate about supporting women in tech and cannabis, industries where we are still underrepresented. My advice to women entrepreneurs in our industry is encapsulated beautifully by Maya Angelou, who said, “Without courage, we cannot practice any other virtue with consistency. We can’t be kind, true, merciful, generous, or honest.” This underscores the importance of courage in our endeavors. It’s crucial to stay true to yourself and remember that you are here for a reason. Your unique insights and contributions are incredibly valuable.

I encourage women to actively connect with and uplift other women in the space. Building a supportive community is not just about networking—it’s about creating a space where we can all thrive. Never let your identity be a barrier. Instead, let it be your strength and your guide as you navigate your path. Remember, by supporting one another, we create a stronger, more inclusive industry. This journey isn’t always easy, but it is rewarding, especially when we lift each other up and champion each other’s successes.

THIS MONTH’S ARCHIVED VIDEO

Compliance Issues for Cannabis Business Owners: Taxation, Liability and the ERTC Program

In this session, the panelists discussed the financial issues surrounding managing a cannabis business without federal legalization and with no ability to use a bank; 280E was discussed along with insurance issues, liability and the ERTC Credit program.

Moderated by Steve Gelsi, MarketWatch; with Sandy Suchoff, Founder, CEO CannaCPAs; Jeff Booker, Founder, COO CannaCoverage; and Tom Sauvageau, Founder, CEO ERTCFiling.

Compliance and Taxation seminar session, CWCBExpo NY, June 2024

(pictured from the left) Jeff Booker, Sandy Suchoff, Tom Sauvageau and and Steve Gels

The CWCBExpo BLOG: Timely News & In Depth Articles

CWCBExpo blogs contain relevant, timely information. Recent subjects include cannabis testing laboratories, packaging, facility security, and legalization and regulatory updates.

A grower holds a cannabis plant in their hands. This could be a home grower, like the advocates pushing for New Jersey legislators to allow home cultivation in the Garden State.
Meet This Exhibitor:

Wilson Safe Company
Booth #335

Wilson Safe Company
A Leader in Cannabis Security
DEA High-Security Safe

Protect your cannabis inventory and cash with our high-security TL-30 safes, a versatile solution designed to meet your unique storage needs. Engineered to withstand 30 minutes of assault from a burglar’s arsenal, including hammers, chisels, grinding wheels, and carbide-tipped drills, these safes provide a robust defense. Moreover, boasting a 1.5-hour fire rating at 1,200 degrees, they ensure the integrity of your valuables even in the face of intense heat. Available in various sizes and configurations, each model offers versatility with options such as lockers, additional shelves, and drawers. Equipped with Group 1R locks mandated for DEA safes, heavy-duty hinges, and robust bolt work, our high-security TL-30 safes stand as an excellent safeguard for your assets.

Wilson Safe Company

Get Your Exhibit Space Today.

CWCBExpo, 11th Annual
June 5 – 6, 2024
Javits Convention Center, NYC
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. 

Vice President Kamala Harris Making Statement

NY Mayor Eric Adams Fights For Legal Cannabis Industry

Mayor Adams Fights For Legal Cannabis Industry

Celebrates Opening Of First Black Woman-Owned Legal Dispensary in Brooklyn
Recommits To Closing Down Illegal Smoke Shops

Congratulations to Leeann Mata who is the proud Founder and owner of Matawana, the first Black woman-owned dispensary in Brooklyn, New York. The opening was attended by NYC Mayor Eric Adams, Dasheeda Dawson, Founding Director of Cannabis NYC and other officials and New York State Assembly Member Jenifer Rajkumar. The Mayor took the opportunity to assert that he is committed to cracking down on illegal shops.

Click here to view the momentous event and joyful opening, and learn more about the Mayor’s commitment to shutting down illicit shops.

Matawana Dispensary opening, March 2024
Matawana Dispensary opening, March 2024, (from the left), Dasheeda Dawson, Leeann Mata, Eric Adams, and Jenifer Rajkumar
New York State News

More on Crackdowns Across NYS From Governor Hochul

“…these Illicit vendors flagrantly violate our laws by selling to kids, evading our taxes, and engaging in fraudulent advertising about their products…”
– NYS Governor, Kathy Hochul

We have been reporting in several of our CWCBExpo Newsletters that Goveror Hochul is also committed to shutting down illegal shops. Her approach seems to be garnering support from legal dispensary owners who welcome her plan. Learn more from this WKBWTV news report where NYS dispensary owners praise the Governor and are hopeful that the actions will offer growth for their legal dispensaries and present opportunity to put NYS on track to have a thriving cannabis industry.

Seal of Governor Kathy Hochul

Dispensary Openings

March saw many dispensary openings across New York City and State. Below are some of the many recent openings.

TreeHead Culture
ERIE | 665 North French Road, Amherst 14228
Website: www.treeheadculture.com   

The Travel Agency Downtown Brooklyn
FLATBUSH | 122 Flatbush Avenue, Brooklyn 11217
Website: www.thetravelagency.co 

Matawana Dispensary
PARK SLOPE | 533 5th Avenue, Brooklyn 11215
Website: www.matawanany.com

The Bakery Cannabis Dispensary
ALBANY| 1099 Loudon Road, Cohoes 12047
Website: www.518bakery.com

Raven’s Joint
ONONDAGA | 4106 NY-31 Suite 903, Clay 13041
Website: www.ravensjoint.com    

Bronx Joint
BRONX | 925 Hunts Point Avenue, Bronx 10459
Website: www.thebronxjoint.com

Polanco Brothers
MANHATTAN | 12 East 42nd Street, New York 10017
Website: www.dutchie.com/dispensary/polanco-brothers-corp 

Liberty Buds
MANHATTAN | 1115 1st Avenue, New York 10065
Website: (website coming soon)

 

The Cannabis Place
QUEENS | 74-03 Metropolitan Avenue, Queens 11379
Website: www.thecannabisplace.org

Leafy Peaks
WATERFORD | 27 B Saratoga Avenue, Waterford 12188
Website: www.leafypeaks.com

Bliss + Lex
MANHATTAN | 128 E 86th Street, New York 10028
Website: www.blissandlex.com

Mr Good Vybz
ALBANY | 25 N Pearl Street, Albany 12207
Website: www.mrgoodvybz.com

Black Canna Market Co LLC
POUGHKEEPSIE | 89 Main Street, Poughkeepsie 12601
Website: (website coming soon)

Licensing News

On March 11 the Office of cannabis Management issued the Adult-Use December Queues on the OCM website. There were five queues made from a random sequence process for each type of license for applications submitted within the application window that ended December 18, 2023. The queues represent a review order for the OCM itself and do not represent the order in which licenses will be issued. Furthermore, inclusion in a queue does not guarantee getting a license. The five queues were audited by a third party. There are queues for:

  • Cultivator
  • Processor
  • Distributor
  • Retail Dispensary
  • Microbusiness Applicants
NYS OCM Office of Cannabis Management

Also noteworthy in March, the OCM issued a listing of what they call a Proximity Protected Locations Map (PPLM). The intention with this is to provide transparency on locations of licensed cannabis dispensaries, as well as those proposed locations on applications that are still under review. Proposed locations have what is called proximity protection since the OCM reviewed the locations and have deemed them compliant regarding distancing and proximity requirements until the final determination on a application is made. The PPLM is meant to be a helpful aid to identify potential locations for a cannabis dispensary.

There are many more things to know about these five Adult-Use queues that the OCM posted.
You can learn more here.

New Jersey News

“These are early signs of the potential of this market. Sales have grown steadily since Governor Murphy began the work to reform New Jersey’s cannabis market.  If we consider medicinal cannabis sales from 2018 to 2021 – before recreational sales began – cannabis sales totals exceed $2 billion over the six-year span.”

– Jeff Brown, Executive Director at the New Jersey Cannabis Regulatory Commission

NJ Cannabis Regulatory Commission

In our February Newsletter, we highlighted the positive reports that the New Jersey Cannabis Regulatory Commission gave about the number of opened dispensaries and the revenue to date for medical and recreational sales. The news just keeps getting better.

The combined revenue for medical cannabis sales and recreational sales since recreational went into effect April 2022 is already over $1.3B to date. The expectation is that in 2024, medical and recreational sales could see over $1B in combined sales.

New Jersey Consumption Lounges

We reported previously in recent Newsletters that New Jersey consumption lounges are coming soon.

 

Consumption Lounge, men smoking and relaxing
Virginia News

Governor Glenn Youngkin Does Not Want to Legalize Adult-Use Cannabis

The suspense is over. Governor Glenn Youngkin vetoed the piece of legislation that was passed in late February by both the Virginia state General Assembly and the state Senate to launch a Virginia Adult-Use cannabis industry. The Adult-Use Cannabis Sales bill would have taken effect in May 2025 and sought to build a legalized commercial adult-use market in Virginia. Youngkin made some strong statements about the legislation that he vetoed.

In addition, Youngkin’s veto power did not stop at just one cannabis bill. He also vetoed a bill that would have allowed individuals who were incarcerated for certain marijuana offenses to receive automatic re-sentencing hearings and have their punishments adjusted. No dice.

Lastly, it seems that Youngkin’s views are simply not in step with the majority of Virginians and their views on cannabis and legalization as suggested by a poll released earlier this month by the Institute for Policy and Opinion Research at Roanoke College.

Cardinal News
Hawaii News

Expungement Bills

Hawaii has advanced several cannabis legislation bills that seek to expunge tens of thousands of cannabis convictions. The proposals spelled out some legislation to create an adult-use market in Hawaii.

Federal News

Descheduling vs. Rescheduling

The industry has been abuzz for weeks with the prospect of rescheduling and with even louder calls for descheduling. Several important things that deserve highlighting include:

  • President Biden’s comments made during his State of the Union Address in February where he asserted his support for cannabis reform.

     

  • Vice President Kamala Harris’s meeting this month in March, where she met with several industry influencers, stakeholders, and some who received pardons for cannabis offenses. Included in the notable attendees were hip hop artist and rapper Fat Joe, and Chris Goldstein, Regional Coordinator for NORML. Harris made comments that were bold and welcomed by those in the room and gives a positive prospect for real action by the Federal Government.

“…we need to legalize marijuana…”

– Vice President Kamala Harris, at her roundtable meeting on March 15th at the Whitehouse.

Vice President Kamala Harris Making Statement
Reality TV

Read Upcoming 420 High Hopes Series From Hulu

Hulu is debuting an unscripted reality series about a dispensary, based in Hollywood, CA. The series is called High Hopes and is produced by Jimmy Kimmel’s production company.

GreenState
CWCBExpo’s Advisory Counsel

Welcome CWCBExpo Advisory Council

Please join the CWCBExpo team in welcoming, honoring and thanking our Advisory Council Members. Each one is accomplished in the industry and has made an impact to so many, and they continue to do so. We appreciate their advisement and we look forward to working with each of them at all of our upcoming CWCBExpo events.

CWCBExpo Advisory Council

THIS MONTH’S ARCHIVED VIDEO

“Financial Challenges in a Federally Illegal Industry”

In this session, the panelists discuss the banking and financing challenges facing the industry, and give their advice on how retailers and brands can survive and advance to the next level.

Moderated by Steve Gelsi, MarketWatch; Michael Harlow, Partner, CohnReznick; Neil Kaufman, Partner, Managing Member, Kaufman McGowan PLCC; David Feldman, Co-founder, CEO, Skip Intro Advisors; Ryan Himmel, VP, Head of Strategic Partnerships, LeafLink

Financial Challenges in a Federally Illegal Industry, Seminar Session, CWCBExpo, June 2024

(pictured from the left) Neil Kaufman, Ryan Himmel, Michael Harlow, David Feldman and Steve Gelsi.

The CWCBExpo BLOG: Timely News & In Depth Articles

CWCBExpo blogs contain relevant, timely information. Recent subjects include cannabis lounges, NY licensing review and tech tools shaping the industry.

Cannabis Retail Shop
Meet This Media Partner: Leafwire

“We built Leafwire to provide a safe, welcoming platform for the cannabis business community. We saw a need in the industry to provide a platform where the cannabis industry could share news, promote events, find business partners, find employees, look for investors and just simply network. We’re 100% devoted to the cannabis and hemp industries.

“The Cannabis industry is unique in that we are currently an industry of start ups. Due to federal regulations and other issues, larger corporations are largely kept on the sidelines until we clear those hurdles. This creates an opportunity that we have not seen for decades within the business landscape. The path forward for this industry is through the start up community, leveling the field for new entrants. As a result, we have a chance to build something from the ground up that is designed to not only help people, but the environment and the world.”

Get Your Exhibit Space Today.

CWCBExpo, 11th Annual

June 5 – 6, 2024
Javits Convention Center, NYC

Cannabis Gains Political Momentum as Legal Industry Grows  

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.

March brought some dynamic shifts in the political culture surrounding cannabis. Vice President Kamala Harris led discussions on legalization and pardons, while Senate Democrats and House Republicans continued to push for cannabis banking reform. Could these developments be signs of growing momentum towards a shift in federal cannabis policy? Explore the impact of these updates on the cannabis industry nationwide.

VP Kamala Harris holds meeting on cannabis legalization and pardons 

Vice President Kamala Harris held a closed-door White House roundtable discussion on cannabis policy on March 15, 2024. Among the attendees were figures such as Cynthia Roseberry, Director of Policy and Government Affairs, Justice  at the ACLU; rapper Fat Joe; Chris Goldstein, Regional NORML organizer; Kentucky Governor Andy Beshear; and White House Director of Public Engagement Steven Benjamin. 

VP Harris used the discussion as an opportunity to emphasize the injustice of cannabis-related incarcerations, stating that “nobody should have to go to jail for smoking weed.” According to Goldstein, Harris also shared meaningful dialogue with Fat Joe regarding the importance of legalization and expressed support for ending the federal prohibition.

“The moment where she raised her hands in the air and said, “We need to legalize marijuana” — saying those words out loud, saying it in the Roosevelt Room, it did feel very meaningful, and it wasn’t lost on anyone there what was going on in that moment,” Goldstein told Marijuana Moment.

The Department of Health and Human Services (HHS) conducted a scheduling review in August 2023 and concluded to the DEA that cannabis be reclassified to a Schedule III drug. While there is no timeline for when the DEA’s review could take place, conversations like these represent strides forward. “This is the first time the White House has asked for a scheduling review in the right manner, so we don’t have a context for how long they might be able to run out the clock,” Goldstein added. 

Senate Democrats and House Republicans continue to push for cannabis banking bill 

As Congress nears the passage of a package of spending bills for the 2024 Fiscal Year, bipartisan attention has again turned to advancing the Secure and Fair Enforcement Regulation (SAFER) Banking Act. Senate Banking Committee Chairman Sherrod Brown (D-OH) expressed optimism about the bill’s prospects in a recent interview, sharing hope that the measure will immediately pass on the floor this year. 

“We’ve got a House that’s still not moving on stuff that matters to Republicans,” he said, referencing party divisions in the chamber. “The truth is that’s really pushed us back on what we can do in the Senate with floor time.”

In parallel, House Majority Whip Tom Emmer (R-MN) reiterated his support of the SAFER Banking Act during an American Bankers Association (ABA) summit. Emmer emphasized the need for federal action on banking reform, citing the sluggish pace of incremental reform despite his personal stance on the issue.

“For whatever reason, the federal government has been slow to get that done,” he stated. “Like it or not, if your state has enacted laws creating this as a legal entity that is legitimate, our bankers should be allowed to bank,” he added. “It’s not whether you are a marijuana lover or hater, it’s more: This is a legitimate business that has been approved by the representative government of that state.”

IRS clarifies cannabis cash reporting regulations 

The Internal Revenue Service (IRS) issued a memo clarifying the rules for reporting large cash payments between cannabis businesses. In response to a request for guidance on Form 8300, which mandates reporting for cash payments exceeding $10,000, the IRS emphasized that such transactions should not automatically be flagged as “suspicious” solely due to the federal prohibition of cannabis. 

An example of the other language in the memo includes:

Question 3: “Is it reasonable for a legalized substance business to check the suspicious activity box simply because of the type of product they deal with?”

Answer 3: No. When marking the suspicious activity box is purely done defensively, much like a Money Service Business filing defensive Significant Activity Reports, this is an abuse of the use of that box. If they are solely marking the box because of the industry and for no other reason, this is not an appropriate use of the box. If a business is checking the box in these circumstances, the agent should inform them that continuing to check the box could result in penalties for inaccurate forms. Of course, this depends on the facts and circumstances in each case.”

“We are working on additional guidance on questions related to cash couriers/armored cars who transport cash between growers/manufacturers and dispensaries/sellers,” reads the memo. 

Keeping tabs on the cannabis industry’s progress nationwide

Gradually, the federal government has made progress toward cannabis reform, and there is as much reason to be optimistic as ever. Given recent developments, it’s important to continue our path toward comprehensive reform, promising a future of equity, accessibility, and opportunity within the legal cannabis industry. Looking ahead, stay tuned for updates on these matters and mark your calendars for this year’s CWCBExpo on June 5 and 6 at the Javits Convention Center in New York City, where professionals gather to network, learn, and shape the future together. 

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. 

 

Licensing Review in NY, Legal Battles in Hemp, and 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 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.

March held some big headlines for the Northeast’s cannabis industry, including Pennsylvania lawmakers reigniting legalization discussions and New Jersey’s milestone achievement of surpassing 100 operational cannabis dispensaries. Here are the details you need to know about some of the latest advancements shaping the landscape across the East Coast. 

Hochul orders ‘top-down’ review of New York cannabis licensing process

New York Governor Kathy Hochul (D-NY) has officially ordered a comprehensive “top-down” review of the Office of Cannabis Management (OCM) licensing process. Hochul announced the review while recognizing the shortcomings and challenges the existing framework posed following cannabis legalization. The governor enlisted the expertise of Jeanette Moy, the commissioner for the Office of General Services, to overhaul the process and streamline operations. 

According to a press release from the governor’s office, the internal audit will last at least 30 days and include:

  • Top-down review of organizational structure, processes, and systems with a focus on improving OCM license processing times and application-to-opening timeframes for new cannabis retailers and businesses.

  • Development of key performance metrics and an executive-level licensing dashboard to provide the Executive Chamber with a timely, accurate, and comprehensive picture of licensing activity for legal retailers.

  • Identification and implementation of changes to policy, procedure, and regulation (within the bounds of the MRTA) to streamline the licensing process and simplify application and review for prospective licensees.

  • Development of three-month and six-month action plans with organizational change initiatives, milestones, and actions to continue improving agency functions while developing a world-class licensing and regulatory agency for the state’s cannabis industry.

After the 30-day assessment, Moy and her team will consider a prolonged examination of the OCM and its practices.

New York hemp companies sue to overturn new state rules

The New York State Cannabis Control Board (CCB) passed stringent regulations in November 2023, which imposed a mandatory 15-to-1 ratio of CBD to THC in hemp-based products and limited potency to  mg THC per serving or 5mg THC per package.

These rules made an estimated 75% of already available hemp goods suddenly illegal and sparked outrage among state-licensed companies. On March 1, a lawsuit was filed in federal court as a result. 

The lawsuit, brought by 10 hemp companies, alleges the enforcement of these regulations, coupled with aggressive raids targeting the illicit market, has caused significant financial losses for hemp businesses and infringed upon their constitutional rights. According to the lawsuit, the change “drastically limits the products available for market” and will push New York consumers “into the illicit market and underground market.” 

“We will not standby and allow the State to violate Plaintiffs’ constitutional rights, engage in warrantless searches and seizures, and maliciously disrupt their businesses in a misguided effort to shut down unlicensed cannabis stores, which have nothing to do with hemp businesses operating in full compliance with both state and federal law,” Joshua Bauchner, chair of the Cannabis, Hemp and Psychedelics Practice Group at New Jersey-based law firm Mandelbaum Barrett said.

New Jersey surpasses 100 cannabis stores, sales top $2 billion in last six years

New Jersey has achieved a notable milestone in its cannabis industry, officially surpassing 100 cannabis stores. The New Jersey Cannabis Regulatory Commission’s (NJCRC) website confirms the presence of 102 medical and adult-use retail locations statewide. In addition, the group shared that the state’s total cannabis sales over the last six years have exceeded $2 billion. 

“These are early signs of the potential of this market. Sales have grown steadily since Governor Murphy began the work to reform New Jersey’s cannabis market,” said NJCRC Executive Director Jeff Brown in a statement.

Pennsylvania joint committee takes up cannabis legalization as governor renews push for reform

Pennsylvania lawmakers are once again pushing for cannabis legalization, with a recent focus on Prohibition’s criminal justice implications and the potential benefits of reform. Members of the Subcommittee on Health Care and the Judiciary Subcommittee on Crime and Correction convened for a hearing explicitly addressing these issues. 

During the hearing, Representative Dan Frankel, chair of the Health Committee and a previous sponsor of cannabis legalization legislation, expressed confidence in the state’s readiness to advance cannabis reform. “I think we are really well-positioned to move forward with legislation,” said Frankel. 

Rep. Rick Krajewski (D) stressed criminal justice and record expungement as one area lawmakers “really need to get right, and get right on the first time, given what we know about the criminalization of cannabis and the ways it has impacted Black and brown communities, working class communities and the ways in which that record still carries a burden.”

Responsible PA has also formed a coalition focused on calling for the legalization of adult-use cannabis, saying they intend to inform lawmakers as they continue to explore the issue. The coalition brings together patient advocates, doctors, scientists, researchers, laboratories, economic development groups, members of law enforcement, local elected officials, labor, and civil and social equity community organizations from across the state. 

“Pennsylvania has the opportunity to build from the success of its medical cannabis program while ensuring full market access for regulated products,” said Warren County District Attorney Rob Greene (R). “Just as we do with medical cannabis, we can properly regulate adult-use marijuana with stringent health and safety standards backed by regulatory oversight.”

Exploring East Coast cannabis with CWCBExpo 

From legislative debates to market milestones, the East Coast is shaping the future of cannabis. The upcoming CWCBExpo on June 5 and 6 at the Javits Convention Center in New York City promises to be a key event for professionals like yourself, offering networking opportunities and insights. Let’s stay informed, engaged, and proactive in driving positive change and innovation within the industry. 

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