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

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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

 

Unveiling Recent Research Highlights

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. 

 

In this month’s national news update, we’re exploring some notable developments in cannabis research, including its social impacts and upcoming studies focused on specific product types. Additionally, we’ll take a look at the market dynamics surrounding cannabis beverages and edibles, two high growth market segments that are popular with a wide range of consumers. Read on to learn more about some of the headlines affecting the cannabis industry nationwide.

 

Rolling paper company seeks volunteers to smoke pre-rolls 

Cannabis rolling paper company DaySavers is seeking 200 volunteers aged 21 and older to participate in their “Science of Smokeability” study. Volunteers will receive $4.20 as a stipend to smoke two free pre-rolls (shipped at the company’s cost) and provide feedback on their experience. 

 

In partnership with the Cannabis Research Coalition and the Network of Applied Pharmacognosy (NAP), DaySavers aims to investigate how different cultivation and processing methods influence the quality and consistency of the smoking experience. Over a two-year period, researchers will analyze laboratory tests and consumer feedback to refine cultivation practices and overall smoke quality. 

 

“This research not only has the potential to improve product quality and consistency but also promote sustainability, profitability, and a deeper scientific understanding of cannabis as a medicinal and recreational product,” the company said in a press release.

 

Study finds older medical patients experience improvement in health and well-being 

A new study published in the journal Drugs and Aging highlighted promising findings regarding the therapeutic benefits of medical cannabis for older adults. The research indicates that cannabis products have the potential to significantly improve health, well-being, sleep, and mood among older patients – mainly related to pain severity and chronic pain. 

 

The study was conducted by a five-person research team and addressed what authors called “a common methodological practice of excluding those aged over 65 years from clinical trials.” Of the products prescribed during the study, patients over 64 were “more likely to receive CBD dominant oil and less likely to receive THC dominant flower by prescription.”

 

“International evidence that older individuals may be the fastest-growing increase in the use of medical marijuana, coupled with their frequent exclusion from controlled trials, indicates a growing need for real-world evidence to assess the effectiveness and safety of these drugs for older individuals,” reads the report. 

 

College enrollment increases in states with legal cannabis 

A recent study analyzing college enrollment trends in states that have legalized recreational cannabis reveals an impact on high education participation. According to the findings, the adoption of recreational cannabis laws increases college enrollments by approximately 9%, with no adverse effects on degree completion or graduation rates. 

 

The study also highlighted that legalization can enhance colleges’ competitiveness, attracting out-of-state students who perceive legal cannabis as a positive amenity. Researchers found no evidence that recreational cannabis laws affect college affordability, education quality, or enrollment rates for in-state students. 

 

“The results indicate that both women’s and men’s enrollments rose significantly after the fourth year of the first dispensary opening,” the report says, noting that the delay could be due to the time it takes for students to decide on and apply to college, as well as the often slow rollout of cannabis retail markets.

 

Cannabis beverage sales grow more slowly than edibles sales 

Cannabis beverage sales have grown more slowly than the total edibles category between Q1 2022 and Q1 2024, according to recent data from BDSA reported by Cannabis Business Times. In Q1 2024, cannabis beverage sales generated $50 million in total across BDSA-tracked markets (AZ, CA, CO, FL, IL, MA, MD, MI, MO, NV, NJ, NY, OH, OR, PA). That represents a 6% share of total edible sales, and a 1% share of total cannabis sales. Comparatively, in Q1 2023, beverage sales totaled $48M across those markets. BDSA forecasts that cannabis beverages will maintain approximately 1% of total cannabis sales across legal markets moving forward.

 

Cannabis gummies continue to dominate the edible market, consistently outpacing other types of edibles in consumer preferences. Three-quarters (75%) of medical and recreational edible consumers have enjoyed gummies in the past six months, while just 8% of the same group report drinking cannabis beverages or teas during the same period. 

 

Continue exploring trends with CWCBExpo 

As more national research and trends unfold, staying informed and connected is essential for industry professionals and consumers alike. Cannabis World Congress Business Expo (CWCBExpo) is the premier event for staying updated on the latest developments and networking with industry leaders. Join us next year and follow us on socials to immerse yourself in the forefront of cannabis and stay connected within the industry.

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

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

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Spring Cannabis News from Across the Nation

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

As spring blooms and 4/20 celebrations have come to a close, the national cannabis industry is on a high right now (pardon the pun). It’s already been a busy season in cannabis, including record-breaking sales and significant legislative developments. Join us as we recap recent headlines and explore what’s going on in the cannabis industry across the nation.

Congressional lawmakers continue demands for rescheduling

A bipartisan group of 21 congressional lawmakers is applying pressure to the Drug Enforcement Administration (DEA), urging swift action to reclassify cannabis from its restrictive Schedule 1 status. 

Led by Sens. Elizabeth Warren (D-MA) and John Fetterman (D-PA), along with Reps. Earl Blumenauer (D-OR) and Barbara Lee (D-CA), the coalition penned a letter to DEA Administrator Anne Milgram and Attorney General Merrick Garland highlighting the urgent need for rescheduling. Noting the eight-month lapse since the U.S. Department of Health and Human Services (HHS) recommended this shift, lawmakers emphasized the imperative need for the DEA to act promptly. 

“Though marijuana is widely used and… associated with fewer adverse outcomes than alcohol, it remains in the most restrictive schedule,” the lawmakers wrote in the letter. “This placement produces a cascade of severe penalties for marijuana users and businesses, including for criminal records, immigration statuses, employment, taxation, health care, public housing, social services, and more.”

Cannabis tech firms report strong cannabis sales on 4/20 

Jane Technologies, a cannabis tech firm specializing in e-commerce and point-of-sail solutions, released a report highlighting strong cannabis sales during the 4/20 holiday. Jane’s network spans more than 2,500 dispensaries and brands across 39 U.S. states and Canada, offering a substantial perspective of activity within the industry on its flagship holiday.

The total number of transactions at Jane-powered locations reached 245,926 on 4/20, marking a notable 1.67% increase from the previous year’s figures. Total transactions for the entire holiday weekend surpassed 500,000, according to a statement released by the company. Jane Technologies also reported record-breaking sales figures in many states, most notably in Illinois, where sales at retailers in the Jane Technologies network soared to almost $4.5 million. 

“We saw record-breaking sales across the country this 4/20,” Soc Rosenfeld, Jane Technologies CEO and co-founder, said in a statement. “At Jane, it was an extremely successful day with well over half a million transactions completed on the platform this holiday weekend.”

According to the report, top-performing brands included Rythm, &Shine, STIIIZY, Savvy, and Float. Flower emerged as the most popular product type, followed closely by vapes and edibles. 

Cannabis POS platform Treez, which operates in 11 states and serves over 600 dispensaries, reported similarly booming sales data. According to data from Treez, there was a 120% increase in customers, products sold, and gross sales compared to 4/20 in 2023. 

However, according to Treez, the biggest spike in sales came the day prior as consumers sought to stock up ahead of the holiday. On April 19, Treez reported a 200% increase over last year’s numbers. That suggests that the day before 4/20 provides an even bigger bump for retailers, as many consumers prefer to refresh their stash ahead of the holiday festivities. 

Schumer pushes to pass cannabis banking bills in ‘bipartisan way’ 

Senate Majority Leader Chuck Schumer (D-NY) is once again championing a bipartisan effort to advance the Secure and Fair Enforcement Regulation (SAFER) Banking Act among a list of legislative priorities for the year. Speaking at a press briefing on April 23, Schumer emphasized the need for bipartisan cooperation in addressing various legislative matters. In addition to the SAFER Banking Act, he underscored the importance of addressing issues like insulin pricing, online child safety, and railway safety. 

“We’ve got a lot to do,” Schumer said. “And if we can work in a bipartisan way, we will.”

Schumer has repeatedly pushed to move the SAFER Banking Act, which previously cleared the Senate Banking Committee last September before dying without a floor vote. However, the Senate recently approved long-awaited and contentious appropriations legislation that may have cleared the way to focus on new legislative items like cannabis reform.

CWCBExpo is your gateway to the cannabis industry

The cannabis industry continues to rack up wins, from a record-breaking 4/20 to continued momentum on Capitol Hill. As the industry grows, CWCBExpo offers unparalleled opportunities to connect, learn, and stay updated on the latest news and trends shaping the cannabis industry. Register for our show and business exposition June 5 and 6 at the Javits Convention Center in New York City, and stay up to date on the latest changes and updates in the industry with our monthly news updates. 

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. 

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

Unlicensed Shop Crackdowns and Cannabis Seizures: Impact on NYC’s Cannabis Industry 

Editor’s note: This is an ongoing story, and this blog is updated as new information and updates come to light. For the latest, sign up for our email list.


As New York City grapples with unlicensed cannabis shops appearing throughout the five boroughs, state officials are heightening their efforts to curb the surge. In the face of the escalating issue, state regulators and law enforcement are turning their attention to these unauthorized establishments and ramping up efforts to bolster the city’s legal adult-use marketplace.

Current state of unlicensed shops in NYC

Since New York legalized cannabis for recreational use in March 2021, the city has witnessed a surge in unlicensed vendors selling a variety of products like flower, edibles, and vapes. The allure of the booming market and the potential for significant profits have enticed numerous entrepreneurs to enter the industry without obtaining the necessary licenses. Moreover, the regulatory framework and licensing process have faced challenges in keeping pace with the demand, creating a gap for unlicensed entities to exploit. 

The number of unlicensed shops has continued to grow rapidly. A report by New York City’s Independent Budget Office (IBO) determined an estimated 1,500 unlicensed retailers exist in the city, holding as much as $484 million worth of cannabis products. In many cases, consumers might not be able to tell these unlicensed storefronts apart from licensed dispensaries, as some have gone the extra mile to appear legitimate with branding, signage, and showroom floors. The New York State Office of Cannabis Management (OCM) maintains a list of authorized dispensaries on its website. The OCM also provides a QR code licensed dispensaries can post at the door for customers to scan and verify the establishment’s license.

Meanwhile, New York’s CAURD licensing framework was subject to a lawsuit and court injunction that froze the issuing of additional licenses. That lawsuit has since been settled and the injunction lifted, but the delay didn’t do the legal cannabis market any favors. The state’s Cannabis Control Board (CCB) has attempted to speed things along amid the injunction, adopting a resolution that allows existing medical cannabis dispensaries to get involved in the adult-use market.

Regulators have also moved to allow multi-state operators (MSOs) to enter the New York market as well, much to the chagrin of small businesses and social equity applicants. The latter’s licensing outlook remains uncertain and on pause. 
Despite these efforts, the rollout of New York’s legal adult-use cannabis market has been sluggish, creating a prime opportunity for these unlicensed shops to take root. 

Recent enforcement actions against unlicensed cannabis shops

The Office of Cannabis Management launched its enforcement efforts in 2022, sending 52 cease and desist letters to unlicensed cannabis businesses warning them to stop selling cannabis without a license. 

In June 2023, the Office of Cannabis Management (OCM) introduced enforcement legislation aimed at imposing penalties on unlicensed cannabis businesses. The legislation criminalizes the sale of cannabis and cannabis products without a proper license, with fines ranging from $10,000 to $20,000 per day, depending on the severity of the violation. Under the new law, the OCM is also authorized to request State court orders to shut down known repeat violators. 

Underscoring the issue’s magnitude, recent inspections in October 2023 alone led to the seizure of approximately $6.2 million worth of cannabis from unlicensed shops. To date, the state has inspected a total of 289 locations and seized nearly $50 million worth of cannabis from unlicensed shops. The city is also going after landlords who allow unlicensed cannabis shops to operate in their buildings, issuing fines of up to $10,000 to those who knowingly lease commercial property for illegal cannabis sales.

Since June, the OCM has held 26 administrative trials and levied $220,000 in fines. Decisions are still pending in 10 other cases, reports Ganjapreneur. Most recently, the OCM, along with Gov. Kathy Hochul and Attorney General Letitia James, announced the closure of Big Chief Smoke Shop in Brooklyn, an unlicensed shop that ignored repeated warnings from the OCM. However, with so many unlicensed shops still operational, the state’s game of Whack-A-Mole continues.

Implications for the cannabis industry 

The surge in unlicensed cannabis shops brings forth economic, safety, and reputational challenges for both licensed dispensaries and New York State. 

Consumer safety concerns 

Possibly the most pressing implication of unlicensed cannabis shops is the growing concern for consumer safety. Products from unregulated establishments often lack proper testing and quality control measures. 

In fact, an industry-led study revealed that 40 percent of products from 20 unlicensed stores in NYC contained harmful contaminants such as E. coli, lead, and salmonella. The absence of oversight raises the risk of harmful substances or inadequate labeling of cannabis products and poses many health risks to unsuspecting consumers. Notably, the OCM requires testing for salmonella and other contaminants.

Economic challenges for licensed dispensaries 

The proliferation of unlicensed cannabis shops in New York poses economic challenges for licensed dispensaries and the city as a whole. The presence of unregulated competitors leads to price undercutting, potentially diverting customers away from legal establishments and ultimately impacting the financial viability of licensed dispensaries. Meanwhile, licensed cannabis dispensaries are required to adhere to testing standards, transportation and storage regulations, tax implications, and security requirements that increase their cost of doing business — all regulations that unlicensed sellers can ignore.

Lost tax revenue for New York City

Further, the legal sale of the estimated $484 million worth of products, taxed at the state’s 13 percent rate, could have resulted in $18.4 million in revenue for the city, according to the IBO report. Under the existing regulatory framework, 40 percent of that revenue would have gone to education, 40 percent to community reinvestment initiatives, and 20 percent to drug treatment and education.

The battle against unlicensed pot shops is ongoing

Despite increased efforts by the state to identify unlicensed shops and impose consequences, regulators have only begun to chip away at the illicit vendors in New York City. Meanwhile, cultivators are left with 300,000 pounds of product that they can’t sell to unlicensed shops

As the city establishes and regulates its legal marketplace, staying informed is imperative to the success of your cannabis business. For the latest developments on the unlicensed shop crackdowns and seizures, we encourage readers to follow reputable news sources like NY Cannabis Insider. And, of course, we at CWCBExpo remain committed to keeping you updated on cannabis news through our LinkedIn, Facebook, and Instagram channels. 

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