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.

 

 

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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.

 

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.

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“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.”

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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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