PA Mulls Adult-Use as NY Expands Licenses

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

 

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

 

CWCBExpo 2024 was a resounding success 

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

 

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

 

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

 

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

 

PA lawmakers preparing recreational cannabis bill 

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

 

Additionally, it: 

 

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

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

 

Gov. Kathy Hochul announces more adult-use licenses 

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

 

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

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

 

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

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

 

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

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

 

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

 

Stay connected with CWCBExpo 

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

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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