June 4 - 5, 2025
Javits Convention Center

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.

September 2023 Regional News Update: Northeast Faces Regulatory Shifts and Licensing Milestones 

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.

September 2023 brought major changes to the Northeast cannabis scene, as some markets expanded and others faced significant setbacks. Join us as we unravel these pivotal moments and explore the ever-changing narrative of the East Coast cannabis industry. 

NJ set to expand edibles market with newly-approved rules 


In New Jersey, the Cannabis Regulatory Commission (CRC) made strides in expanding the range of edible products available in the state’s cannabis market. 

In a landmark decision during a September 8th meeting, proposed rules were passed to relax restrictions on infused products and open the doors to a broader array of options for consumers. While the state had previously limited the sales of cannabis edibles to non-food-like products such as lozenges and soft chews, dispensaries can now begin stocking infused chocolates, baked goods, butter, jams, and beverages. The new rules require products to be made uniformly, staff to receive food safety training, and packages to have nutrition labels and expiration dates.

The new rules were approved unanimously for medical and recreational dispensaries. It now undergoes a 60-day public commenting period. 

NJ delivery, wholesale, distribution companies can soon apply for licenses

Starting Sept. 27th, the CRC will begin accepting applications for wholesalers, distributors, and delivery services. While medical facilities have been permitted to deliver to patients since 2020, adult-use dispensaries have yet to allow this service. 

  • A Class 6 Cannabis Delivery license allows companies to deliver cannabis products to eligible adult-use customers on a dispensary’s behalf.

  • A Class 3 Cannabis Wholesale license allows the holder to store, buy, and sell bulk cannabis and cannabis products.

  • A Class 4 Cannabis Distribution license allows the holder to transport bulk cannabis and cannabis products between cannabis cultivators, manufacturers, or retailers within New Jersey.

“The launch of these new cannabis business license classes represents a significant step in the continued growth and diversification of New Jersey’s cannabis industry,” said Commission Chairwoman Dianna Houenou in a press release.

Despite around 70% of municipalities opting out of allowing legal cannabis businesses in New Jersey, the addition of delivery in the state means that these residents in those towns can still easily access cannabis. Cannabis can be delivered anywhere in the state; state law does not allow municipalities to restrict delivery services from delivering products to residents of their municipalities.

At first, the NJCRC will exclusively accept social equity applications from business owners with prior convictions for cannabis offenses. Diversely-owned enterprises, encompassing minority-owned, woman-owned, or disabled veteran-owned businesses, will have the opportunity to apply starting December 27th. Other interested parties will be able to submit their applications beginning March 27th, 2024. 

CAURD lawsuit continues to drag on in New York

Last month, Judge Kevin Bryant ordered the NYS Cannabis Control Board (CCB) and Office of Cannabis Management (OCM) to halt awarding or further processing any more conditional adult use retail dispensary (CAURD) licenses after a lawsuit brought by four New York veterans. They argued that the CAURD program, designed for entrepreneurs affected by cannabis enforcement, is unconstitutional.

The order continues to stall the rollout period of adult-use cannabis dispensaries, with hundreds of license holders unable to open their doors. 

While these businesses will have the opportunity to re-apply for general licensing in October 2023, the program expansion opens the doors for the state’s medical cannabis operators and large MSOs to apply. As regulators keep their doors open for retail or microbusiness applications until Dec. 23rd, 2023, concerns linger over how this might affect small businesses like CAURD applicants. More decisions are expected from the court throughout the remainder of 2023.

PA Senate Moves to Increase Medical Cannabis Access  

The Pennsylvania State Senate has passed Senate Bill 773, a measure that could reshape the state’s medical cannabis landscape. The bill proposes that all licensed cannabis grower-processors in the state be granted dispensary permits, thereby enabling them to serve medical cannabis patients directly. It received a 44-3 bipartisan vote. 

This marks a departure from the current framework established by PA’s Medical Marijuana Act of 2016, which restricts the number of grower/processor license holders with dispensary privileges to just five out of the 25 total. The remaining license holders are currently obligated to distribute their products through retail dispensaries, acting as intermediaries. 

The system has received criticism for fostering a near-monopoly, prompting lawmakers to advocate for such a corrective measure. The bill, sponsored by Sen. Chris Gebhard (R-48), will head to the House next. 

Stay in the loop with updates you can trust

As we wrap up this month’s update, it’s evident that the Northeast cannabis industry is brimming with potential and challenges alike. Staying well-informed amidst these shifts is paramount, and trustworthy sources are essential. You can always rely on CWCBExpo’s monthly updates to serve you relevant industry news.

New York’s CAURD Program: Understanding The Ongoing Legal Saga

This blog was last updated on Sept. 19th, 2023.

The NYS Office of Cannabis Management (OCM) introduced the Conditional Adult-Use Retail Dispensary (CAURD) program in 2021. This program aims to provide equitable opportunities for those most affected by previous cannabis prohibition to participate in the Empire State’s cannabis industry. However, August 2023 legal proceedings argued that the CAURD application process favors “justice-involved” individuals and their immediate families over disabled veterans, opening up questions and doubts about the program’s legal standing. 

Hundreds of applicants anxiously await news as this important issue makes its way through New York’s courts. Read on for more information on the nuances of the CAURD program and the unfolding legal saga surrounding licensing in New York. 

What is the CAURD program?

After legalizing recreational cannabis in March 2021, the CAURD program was launched by the Office of Cannabis Management (OCM). The initiative aims to provide opportunities to “justice-involved” individuals and their immediate families who had prior convictions for cannabis-related offenses the opportunity to own and operate a conditional adult-use retail dispensary. The program’s goal was to help establish a fair and equitable market of businesses owned by individuals at the core of New York’s long-established cannabis community.

To be eligible under the qualifying business criteria for the CAURD program, at least 30% of the entity must be owned by an individual who is justice-involved. The conviction on cannabis offenses needed to occur before the passing of the Marihuana Regulation and Taxation Act (MRTA) in March 2021. Other requirements for the CAURD program include qualifying business experience and a significant presence in New York State. 

The CAURD program is currently the only avenue available to cannabis entrepreneurs wishing to operate an adult-use dispensary in the state. Other types of applicants are awaiting the opportunity to apply for a license of their own.

Why were the OCM and the NYS Cannabis Control Board (CCB) sued?

A lawsuit brought by four New York veterans, Carmine Fiore, William Norgard, Steve Meja, and Dominic Spaccio, argues that the CAURD program, designed for entrepreneurs affected by cannabis enforcement, is unconstitutional.

The plaintiffs allege that under CAURD, state officials favor justice-involved individuals over disabled veterans for licensing. Specifically, the lawsuit alleges that the CCB and OCM failed to set up a legal cannabis market that follows MRTA approved in 2021, which lists “service-disabled veterans” as one of the five priority “social and economic equity” groups to get 50% of adult-use licenses. According to MRTA’s framework, other groups considered for priority include women and distressed farmers. 

The lawsuit states that the cannabis regulators in New York exceeded their jurisdiction by establishing the CAURD program and restricting eligibility to justice-involved individuals with successful businesses.

At this time, all CAURD licenses have gone to individuals or partners of “justice-related” individuals. 

Fallout from the lawsuit

On August 7, 2023, Judge Kevin Bryant ordered the CCB and OCM to halt awarding or further processing any more CAURD licenses. The OCM is also restrained from approving any more provisional or existing CAURD licenses that have yet to open. This action has put significant financial strain of CAURD applicants, who continue to pay rent on retail spaces while awaiting the fate of their applications.

While New York had prioritized and approved hundreds of retail licenses across the state for people who had been convicted of cannabis offenses, only 23 of these licenses have opened their businesses. The majority, more than 400, still cannot open their doors. 

In a hopeful effort, the state furnished a list of 30 applicants they felt had progressed far enough to be exempt from the injunction. While Bryant initially indicated that some would be allowed to proceed, he eventually expressed that not all applicants have met all licensing requirements and instructed the OCM to submit a list “under oath,” leaving all 30 of these businesses in limbo. 

“It is clear to this Court upon review of the affidavits that OCM failed to comply with this Court’s Order regarding exemptions to the injunction,” Bryant wrote in the order, which was filed Aug. 30th. “They have submitted a list which, by their own admission, includes licensees who are still finalizing construction and whose post-selection inspections have not been scheduled or completed.” 

What happens now?

The current order imposed on New York cannabis regulators will likely continue slowing the rollout period of the Adult-Use Cannabis licenses. 

There will be an opportunity for these dispensaries to re-apply in October, with general licensing opening up on Oct. 4, 2023. However, this program expansion opens the doors for the state’s medical cannabis operators and major MSOs – the same ones who secured a majority of New York’s 10 “registered organization” permits years ago. With regulators planning to accept retail or microbusiness applications through Dec. 23rd, 2023, concerns are rising regarding how this will affect small businesses such as CAURD applicants. Meanwhile, more decisions are expected from the court throughout the remainder of 2023.

As this narrative continues to unravel, the future of the CAURD program remains unclear. This is a developing story that’s vital for cannabis entrepreneurs in New York to follow and stay up to date with reliable, accurate information. We encourage readers to follow news sources like NY Cannabis Insider for the latest, and we at CWCBExpo will continue to share CAURD lawsuit updates on LinkedIn, Facebook, and Instagram as they occur.

Regional Cannabis News Update, November 2022 

Each month, Cannabis World Congress & Business Exposition (CWCBExpo) offers a convenient regional news round-up highlighting significant developments in the tri-state area and Pennsylvania. Get these updates in your inbox by subscribing to our email newsletter, or follow us on Instagram, LinkedIn, Facebook, or Twitter to get the most recent edition when it’s published.

Q4 got off to a strong start in New Jersey and New York, with significant progress in both states as each continues to establish and grow retail markets. Check out what you need to know in this roundup of the latest headlines from the tri-state region.

New York publishes initial cannabis retailer guidelines

The New York Office of Cannabis Management (OCM) released initial guidelines late last month for retail operators hoping to open their doors in the state. Click here to read the guidelines.

The guidelines dictate rules on operations, marketing, training, inventory tracking, and other essential areas of cannabis business operations. These rules are effective immediately.

Notably, the regulations reemphasize compliance with conditional adult use retail dispensary’s (CAURD) True Party of Interest clause. This requirement seeks to reinforce that business operators have ties to the state and bars stakeholders from involvement in other markets. This could have a cooling effect on multi-state operators (MSOs) looking to participate in New York’s adult-use market from its earliest stages.

New Jersey state legislature passes tax relief for cannabis businesses

In response to the challenges section 280E of the IRS tax code presents to state-legal cannabis businesses, the New Jersey legislature approved a bill that would allow these companies to claim some of those deductions on their state taxes. The legislation specifies that cannabis businesses that gross under $15 million per year would be eligible for these write-offs.

Currently, section 280E prevents entities that work with Schedule I or Schedule II substances from making significant tax write-offs that businesses in other industries enjoy. (Read our guide to 280E by clicking here.) These operators cannot deduct beyond cost of goods sold, leaving valuable tax write-offs unavailable for the whole industry. Relief on the state level can help make up for some of that tax burden.

As of the publication of this article, the bill has yet to come up for a vote in the New Jersey Senate.

More NJ operators get the green light

The New Jersey Cannabis Regulatory Commission (NJCRC) announced the approval of around 300 conditional licenses on Oct. 27th, adding more players to what’s expected to be one of the largest adult-use cannabis markets in the U.S. This brings the total number of awarded conditional licenses to 801. The licenses cover cultivation, manufacturing, and retail locations, and both standard and micro conditional licenses were awarded.

Conditional licenses are intended for those who wish to enter New Jersey’s cannabis industry but do not have real estate or experience running a cannabis retail business. Awardees must complete additional requirements before converting their conditional license to an annual license, which will permit the entity to operate.

Prepare for 2023 with the news you need to know

The cannabis industry landscape is ever-changing. Changes to regulations and policy can drastically affect your business and how you operate, so staying in the know is one of the most important – and responsible – actions you can take as a cannabusiness operator. Stay connected to CWCBExpo throughout the year for more timely updates and informative industry guides that help support continued business growth.

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