East Coast Cannabis Weekly ARCHIVE

news about cannabis on the east coast

East Coast Weekly

ARCHIVE


May 6, 2022


New Jersey  


MAP of the 13 adult-use dispensaries now serving the general public   


  • So far there has been little released in the way of figures (other than the opening day $1.9 million) and no patient shortages or any other “sky is falling” observances have made the first two weeks of adult-use sales rather quiet.


  • The oversight hearing concerning the significantly delayed opening of the adult-use market will be held Thursday, 5/12/22 at 1:00pm and can be streamed live.  In addition to monitoring the CRC’s handling of the rollout, the bipartisan legislative committee spearheaded by Senate President Nick Scutari will also monitor pricing as well as investigate what can be done to increase supply and reduce the cost of medical cannabis.



New York


  • The brief 9th meeting of the Cannabis Control Board was held yesterday, 5/5/22 at 1:00pm


  • An additional 36 cultivators were approved for a total of 88 (with another “100 or so” to come!)


  • The CCB showed a video testimonial about how smooth and welcome the conversion process is from Phil Spinelli and wife Christine, owners of the 41-acre Nightshade Farm in Medusa, NY.  They started as a horse farm, moved to organic vegetables then pivoted to hemp in 2019.  They grew hemp for two seasons and found it hard to compete nationally and are now planting 30000 ft2 of THC.




east coast cannabis news
  • Cannabis from these conditional growers will be available for sale in the fall.


 

  • Preselected storefronts for the first 150 - 200 social equity licensees with 10-year loans to cover opening costs.  The Dormitory Authority of the State of New York (DASNY) will be the facilitator of the loans according to CEO Reuben McDaniel III, who is also on the NYS Cannabis Control Board.


  • The package will include a fully built-out retail and the licensee will have some control of customization and branding of the facilities.
  • 6% to 8% is the expected interest rate with a max of 11.5% 
  • 10,000 potential zones have been identified and will be pared down to 225 zones.
  • These 225 zones are being scouted and hopefully narrowed down to 100-125 available retail spaces.
  • These 100-125 retail spaces are anticipated to be 3,000-3,500 square feet in high traffic areas.
  • The first 100 applications should open in mid-summer and close in early fall. 
  • So far, the state has been working with CBRE and RFPs will be issued in the coming weeks for other portions of the initiative.


  • The loans will come from the $200 million fund announced by Governor Kathy Hochul back in January as part of her 2023 Executive Budget and will consist of $50 million from the state with the remainder to be raised via private investors by August.  [Under the program, called the Seeding Opportunity Initiative, the first adult-use retail licenses in the state will be made available to individuals with prior cannabis-related offenses that also have a background in owning and operating a small business.]


  • Hochul has said that giving the first licenses to the social equity cohort “takes a major step forward in righting the wrongs of the past.”




Connecticut


  • The lottery for retailers closed at midnight last night (5/4/22) and the DCP said that it had received 7,245 entries for a general license and 8,357 entries for a Social Equity license for a total of 15,602


  • The nonrefundable entry fees just from retail applicants total over $5.7 million.


  • Another lottery is planned for the summer and any Social Equity applicant not chosen will be added to the general lottery.




Vermont


  • Sadly, the CCB missed a state mandated 5/1/22 deadline to issue licenses to micro-cultivators. 83 growers have submitted applications but only 2 are currently under review with those 2 being amongst 24 social equity applicants. 


  • The delays are due to staffing and the current staff of four will expand after a bill was passed by the legislature allowing such. They do not have a dedicated licensing or compliance staff at this time.


  • Existing medical cannabis license holders were theoretically allowed to begin selling adult-use on 5/1/22 but none of the three current operators have applied to do so. 

 

  • Retail sales seem hard pressed to begin 10/1/22.




New Hampshire


  • The State Senate rejected two House Bills (1598, permitting the state’s liquor commission to implement a market via state-run stores and 629, decriminalizing possession and limited homegrow) but the House of Representatives isn’t giving up yet! 


They adopted an amendment to an unrelated Senate-passed criminal justice reform bill that legalizes home cultivation and possession. 


The amended bill will now go to the Criminal Justice Conference Committee for approval and will ultimately need anti-cannabis Governor Chris Sununu’s signature before becoming law.


  • Adults 21 and older could possess up to three-fourths of an ounce of cannabis for personal use.


  • They could further grow up to six plants—only three of which could be mature—in a secure location out of sight from other properties.


  • Cannabis gifting of up to three-fourths of an ounces of marijuana or up to three immature plants would be permitted between adults 21 and older.


  • Processing marijuana into cannabis-infused products, including edibles and tinctures, would be permitted as well.




Ohio


  • RFA II round of 73 dispensary licenses will be announced in May, effectively doubling the current number.




Delaware


  • Big news in the First State with just weeks left in the legislative session as HB 371 passed the House of Representatives 23-14 and heads to the Senate where it is expected to pass.  Governor John Carney is unlikely to stand in the way and may just let it become law after 10 days by doing nothing (“pocket veto”).  If he does try to veto, there are already enough votes for the â…— majority needed to override.


Charlie Megginson’s informative Town Square Live piece goes into the particulars:


  • The bill would amend state statute by eliminating penalties associated with the possession of up to one ounce of marijuana by adults 21 and older.


  • It would further add a section stipulating that adults 21 and older could share up to an ounce of cannabis “without remuneration.”


  • That section clarifies that marijuana could not be “gifted” as part of a contemporaneous “reciprocal transition” or if the gift is contingent on a separate transaction for non-cannabis products or services. (Eliminating the gifting gray market in places like Washington DC)



  • ? Where will it come from though ?  Republican Senator Ruth Briggs King, who unilaterally opposes cannabis reform, acknowledged that “this stuff doesn’t fall from the heavens.”  Perhaps the divine nature of the cannabis plant and its healing properties will be revisited when the 60 potential cultivation licenses are negotiated in HB 372




South Carolina


  • The Compassionate Care Act (CCA), an extremely restrictive medical cannabis bill that passed the State Senate earlier this session, has been declared unconstitutional because it imposes a 6% tax and didn’t start in the House of Representatives. 




Numbers 


  • 1392 to 1, chances of winning the Connecticut retail license Social Equity lottery
  • 1207 to 1, chances of winning the Connecticut retail license general lottery


  • 75%, amount of the 2021 US demand for cannabis that is met by the illicit market


  • $176 million, cannabis tax revenue generated by Massachusetts in 2021
  • $4.9 million, cannabis tax revenue generated by Maine in 2021


  • $159 million, cannabis tax revenue estimated to be generated annually by New Jersey
  • $27 million, cannabis tax revenue estimated to be generated annually by Vermont
  • $26.6 million, cannabis tax revenue estimated to be generated annually by Washington, DC

April 28, 2022


New Jersey NOW OPEN  


  •  MAP of the 13 adult-use dispensaries now serving the general public

(also embedded below)


  • From 4/27 CRC email: Last Thursday, the first day of adult-use sales in New Jersey, the state’s 12 participating dispensaries sold cannabis and cannabis products to 12,438 recreational cannabis customers for total gross sales of nearly $1.9 million.


Sales of medicinal cannabis products have also been strong over the last 30 days with approximately 64,000 ounces of products dispensed to patients and their caregivers.  On April 20 – the day before adult-use sales began – ATCs dispensed 5,400 ounces of medicinal cannabis and cannabis products across New Jersey. In the five days following the beginning of adult-use sales an additional 7,500 ounces were dispensed to patients.


While lines have been steady at all the dispensaries, there has not been any substantiated reports of supply problems for medicinal cannabis patients. The NJ-CRC continues to monitor and respond to complaints to ensure patients have adequate supply and access.


  • Ascend Wellness in Rochelle Park, a short train ride from Manhattan, reported that 20% of their adult-use customers have been from out of state and that they’ve seen about 1,000 to 2,000 customers a day since last week.


  • Curaleaf Bellmawr, a five minute drive from Philadelphia, offered free hot dogs, ice cream, t-shirts, swag bags, had a DJ and photo booth and saw about 4,000 adult use transactions over the weekend.


  • Some dispensaries limited customers to ¼ ounce of flower and Curaleaf reported that their first week sales were 71% flower, 23% vape and 4% oral.


  • Special hours for patients only have been implemented across the board as well as priority parking, in-store waiting areas and separate registers and pickup windows where available. (The Botanist has implemented a specific Patient Access Plan.)


east coast cannabis news



New York


  • The full list of the 52 cultivators issued conditional licenses. 


  • Cannabis from these conditional growers will be available for sale in the fall.

 

  • A study co-authored by Shyam Raman of the Jeb E. Brooks School of Public Policy at Cornell University in Ithaca found that states with legal cannabis experienced significant reductions in the use of prescriptions over the last decade.  They focused on the drug classes that align with the medical indications for pain, depression, anxiety, sleep, psychosis, and seizures and results suggest substitution away from prescription drugs and potential cost savings for state Medicaid programs. 




Connecticut


  • Easton became the first municipality in Connecticut to grow hemp on town-owned land through a partnership with Easton Grows LLC. The one-acre parcel grew 150 plants in two hoophouses and garnered $6,472 of which Easton got $1,294. Article from CT Insider




Maine


  • March cannabis sales were up 16% from February, reaching an all-time high of $10.5 million for the month.


  • Price per gram has come down significantly since January 2020 ($15.83) and January 2021 ($12.75) and is now roughly ($11.20).  Legalization works if you work it.




Vermont


  • Sadly, the CCB is going to miss a state mandated 5/1/22 deadline to issue licenses to micro-cultivators. 83 growers have submitted applications but only two are currently under review with those two being amongst 24 social equity applicants. 


  • The FBI has rejected Vermont’s request to perform applicants’ background checks, so a 3rd party must be contracted to the tune of $475 per individual applicant.


  • More staff are being hired after a bill was passed by the legislature allowing such.


  • Existing medical cannabis license holders are theoretically allowed to begin selling adult-use on 5/1/22 but none of the three current operators have applied to do so. 

 

  • Retail sales for new licensees is still pegged to begin 10/1/22.





Ohio



The study pairs tax rates (10% in addition to Ohio’s 5.75% state sales tax) from the organizers’ proposal, population growth estimates, and year-over-year revenue data from six other states (Michigan, Illinois, Nevada, Oregon, Washington and Colorado) with recreational programs to make projections for Ohio.




Kentucky


  • Democratic Kentucky Governor Andy Beshear had hinted at taking executive action and is now convening a “Medical Cannabis Advisory Team” to progress the issue of medical cannabis legalization.  Feedback from the public can also be sent to GovMedicalCannabisAdvisoryTeam@ky.gov


“I believe it’s my obligation to see what’s possible given the will of the people and their desire to move forward on this,” he said. “
We’re behind Mississippi. That’s something that we can’t be OK with.” - Kentucky Governor Andy Beshear




Numbers: Making the Trip from Manhattan


  • 45 minutes to RISE Bloomfield (26-48 Bloomfield Avenue)

From Penn Station you can take NJ Transit/Amtrak to Newark and depending on the time of day, transfer to NJ Transit bus 72, 11, 29, GO28 or light rail 


  • 45 minutes to Zen Leaf Elizabeth (117 Spring Street)

From Penn Station, you can take NJ Transit to Elizabeth then walk 15 minutes to Spring Street


  • 60 minutes to The Apothecarium Maplewood (1865 Springfield Avenue)

From Penn Station, you can take NJ Transit to Maplewood then walk 20 minutes to Springfield Ave


  • $105 - $135, average basket size at Ascend Wellness in Rochelle park.

(Opening week adult-use customers typically spend much more when waiting in long lines, but Ascend’s order ahead system reduce wait times.)




April 21, 2022


New Jersey NOW OPEN  


  •  MAP of the 13 adult-use dispensaries now serving the general public

(also embedded below)


  • Recreational cannabis customers will be able to buy up to 1 ounce of dried flower or up to 5 grams of concentrates, resins, or oils, or 10 100mg packages of ingestible items in a single transaction. The CRC even put together a little FAQ.


  • Dan Ulloa goes all in for Heady NJ covering the annual 4/20 cannabis holiday celebration protest held at the Statehouse in Trenton. The legalization advocacy group Sativa Cross held their annual Statehouse protest and podcast with the Coalition for Medical Marijuana of NJ (CMMNJ) leaders Ken Wolski and Jim Miller.


 

Ascend in Rochelle Park allowed online and in person preorders as early as last night for pickup by appointment today.


The others are staggered with some allowing medical patients only for their first hour of daily sales.


east coast cannabis industry news


Vermont


  • The Cannabis Control Board will close the pre-qualification window for licenses on 5/31/22.



  • As of 4/18/22, 56 micro cultivator, testing lab and converting medical license holder applications have been received.


  • Existing medical cannabis license holders are theoretically allowed to begin selling adult-use on 5/1/22, while retail sales for new licensees is still pegged to begin 10/1/22.




Ohio



  • The study pairs tax rates (10% in addition to Ohio’s 5.75% state sales tax) from the organizers’ proposal, population growth estimates, and year-over-year revenue data from six other states (Michigan, Illinois, Nevada, Oregon, Washington and Colorado) with recreational programs to make projections for Ohio.



Delaware


  • HB 372 is awaiting a House Appropriations Committee hearing and then needs a supermajority (60%) House floor vote to pass before it goes to the Senate.  This bill would regulate commercial cannabis production and sales, authorize 30 retail licenses, 30 manufacturing licenses, 60 cultivation licenses and 5 testing licenses to be issued within 12 months of the bill’s effective date.




Numbers: NJ Adult-Use Market OPENING DAY EDITION


  • 40, the number of people in line at RISE Paterson when it opened at 6:00am this morning
  • 70, boxes of doughnuts provided free for customers waiting in line


  • 830,000 adults – the estimated size of New Jersey’s adult-use market
  • 130,000 – the approximate number of New Jersey medical cannabis patients


  • 150, The number of parking spots Ascend in Rochelle Park, NJ has available for customers
  • 20, The number of Point of Sale stations Ascend has for customers to purchase cannabis


  • $70 - $120, the expected range for a quarter-ounce in the NJ adult-use market (7 grams)
  • $320 - $480, the expected range of an ounce in the NJ adult-use market (28 grams)




April 14, 2022


New Jersey



BREAKING:  New Jersey adult-use stores will open on 4/21/22.   



Monday’s special meeting proved to be a bit of a blockbuster....(see above)


  • 7 Alternative Treatment Centers, the New Jersey nomenclature for vertical operator, are each paying close to $1 million in licensing and regulatory fees to facilitate their 13 collective dispensaries being able to sell adult-use cannabis by or before mid-May 2022. 


  • 34 more cultivator and manufacturer licenses were also awarded 



  • At least 327 businesses have applied for a retail license


  • The CRC is now operating with a staff of 52.


The NJ-CRC is choosing a different path by protecting patient supply and equity.  Governor Murphy is right that it is better to ensure that the state’s requirements are met rather than taking shortcuts that would only cause problems later, as seen in so many other states.” -- Shaleen Title, Cannabis Regulators of Color Coalition, inaugural commissioner of the Massachusetts Cannabis Control Commission




 

New York

 

  • The New York State cannabis regulators met this afternoon and granted conditional cannabis cultivation licenses (tweet) to 52 hemp businesses and the CCB approved revised regulations to allow medical cannabis patients to cultivate at home.



Ohio


  • Ohio regulators want 73 new medical marijuana dispensary licenses to address demand, more than double the current 58. 


  • When the first dispensaries opened in 2019, regulators mistakenly projected 12,000 to 24,000 patients, yet two years later there are over 130,000 and the current number stands above 252,000.


  • Ohio voters are going to have to decide the fate of adult-use via a ballot measure.  The latest intel has roughly 50% of voters in favor, 40% opposed and 10% undecided.  As usual, Kyle Jaeger at Marijuana Moment plainly lays out how convoluted the process is thanks to stalling from the Republican-controlled legislature. 




Virginia


  • One step forward. In good news for Virginia medical cannabis patients, first-term Republican Governor Glenn Youngkin signed legislation removing a requirement for patients to register with the Virginia Board of Pharmacy after receiving a certification from a medical provider.  The removal of this extra step will go a long way toward expediting the 8,000 applicants currently waiting to be added to the 47,000 current patients.


  • One step back. Unfortunately, Youngkin is also trying to codify two new misdemeanors for possession of over two ounces and for over six ounces. 



    New Hampshire


  • The New Hampshire Senate Judiciary Committee approved a House-passed bill (HB 629) 3-2  to legalize cannabis possession and cultivation for adults 21 and older for the first time ever.  The bill allows for possession of up to 21 grams for personal use and home cultivation of up to 6 plants, 3 of which can be mature.  Gifting up to 21 grams of cannabis flower or 3 immature plants is also included and the bill now goes to the Senate floor for a vote.  (The same bill passed in 2020 and got nowhere in the Senate.)




Pennsylvania







Maryland


  • Legalization by voter referendum still looks cleared to close for November 8, 2022 with adult-use sales staked for July 1, 2023.


  • Remember when:  Maryland legalized medical cannabis 8 years ago today, making it the 21st state at the time as well as the 18th state to decriminalize small amounts of cannabis.





Delaware


  • Using Vermont’s playbook, the passage of HB 371 could manifest the passage of HB 372.  Both passed through their respective committees yesterday (Wednesday, 4/13/22) though HB371 will need to be reheard in the House Health & Human Development Committee because of a procedural error.


  • HB 372 still has one committee to go and then needs a supermajority (60%) before it goes to the Senate.  This bill would regulate commercial cannabis production and sales, authorize 30 retail licenses, 30 manufacturing licenses, 60 cultivation licenses and 5 testing licenses to be issued within 16 months of the bill’s effective date.


  • If passed in the House, both bills would have to go through one committee in the Senate, full Senate vote and then Governor John Carney’s desk. Cautious optimism is at new heights.


  • There would be a 15% excise tax


  • Representative Mike Ramone voted against releasing HB 372 from the committee. He said that the bill includes too much government involvement in the cannabis industry.


“I would like to see a different format of that maybe even a digestion from process that is already there whether it’s through the smoke shops or the liquor stores or even a blend. I just think we’re doing an awful lot,” said Ramone. “I also do not like the fact of taxing them. I think that keeps the black market more active.”




Numbers: NJ Adult-Use Market Forecast


  • 830,000 adults – the estimated size of New Jersey’s adult-use market
  • 130,000 – the approximate number of New Jersey medical cannabis patients


  • $35 - $60, the expected range for an eighth of an ounce in the NJ adult-use market (3.5 grams)


  • $70 - $120, the expected range for a quarter-ounce in the NJ adult-use market (7 grams)


  • $320 - $480, the expected range of an ounce in the NJ adult-use market (28 grams)


  • $320, the price for an ounce of top-top-shelf California cannabis


April 7, 2022


New Jersey

 

  • The CRC has been on the hot seat for their delays, so Chairwoman Diana Houenou made an appearance on Reporter's Roundtable (video) to tell their side.  If nothing else, they’re simply trying to avoid shortages and negative patient impact as in Arizona and Illinois.  Something tells me the MSOs have plenty of supply and the CRC has just bitten off more than it can chew and is now swamped with applications it simply cannot process through its 10 buckets of priority fast enough. 



  • The 68 conditional licenses approved on March 24th have a 165 days to file their conditional conversion.  It isn’t an easy task so they were given 120 days and a preemptive 45 day extension. 


  • SPECIAL MEETING: April 11th at 1:pm


 

New York

 

  • Fully licensed dispensaries are expected to begin selling adult-use cannabis in 
    mid-2023
    , while a set of early, conditional licenses should allow for some non-medical cannabis sales sooner, perhaps even by the end of 2022.


  • The New York State Department of Labor is launching a new Cannabis Workforce Site.  This is a “one-stop shop for resources and tools for individuals interested in working and building relevant professional skills in the New York Cannabis Industry.” The website will be updated as new opportunities become available.


  • The state is launching a campaign to destigmatize cannabis as well as focus on public health by explaining the benefits and risks of cannabis use. The government will be airing advertisements on TV, radio, public transit, billboards and social media.


 ”We found that very few New Yorkers knew that we had legalized at all,”
OCM Executive Director Chris Alexander said. “That was a big problem.”




Rhode Island


  • Governor McKee’s budget has cannabis regulatory staffing baked-in and it doubles the number of employees working out of the Office of Cannabis Regulation. The FY2023 budget of $5.6 million would dwarf that of FY2022 ($1.2 million), reflecting the addition of 13 new full-time positions




Vermont


  • The CCB announced the opening of the application window for tier-1 cultivators (up to 1,000 ft2), testing laboratories and integrated licenses effective April 1st at 9:00am


  • As of Monday, the OOC had received 656 pre-qualification applications, including more than 80 each for manufacturers and retailers


  • New England Federal Credit Union is the only financial institution that has opened accounts with prospective adult-use cannabis businesses in the state


  • Retail sales pegged to begin October 1st.




New Hampshire


  • The House voted 196 to 156 last Thursday to approve HB 1598, a bill that would allow cannabis flower to be sold at state-run liquor stores and the bill is headed to the Senate along with the previously passed HB 629 which legalizes home cultivation.




Pennsylvania


  • In their own version of SAFE, the Senate Banking & Insurance Committee unanimously approved legislation to safeguard banks and insurers against being penalized by state regulators for working with state-legal medical marijuana businesses.  SB 1167 would explicitly authorize financial institutions and insurers to provide services to cannabis-related businesses.




Maryland


  • The House voted 94-39 last Friday for a constitutional amendment already approved by the Senate that will put cannabis legalization on the ballot for Tuesday, November 8, 2022, making Maryland at least the 19th state when adult-use cannabis becomes legal effective July 1, 2023. 





Delaware


  • HB 372, introduced with its companion legislation, HB 371, by Representative Ed Osienski last Thursday, may now have some indirect support at last from House Speaker Pete Schwartzkopf, the only Democrat who voted against earlier bills.  He still intends to vote against HB 372, but says that he would be in favor of legislation creating the separate regulations necessary to create the adult-use industry. 

    Schwarzkopf said that he’s long believed that legalization is inevitable and he wont “help” advance it but he’s also “not going to stop it.”  You could have fooled me.


“I’m not voting for marijuana. I’m just voting to tax marijuana that
everybody else made it legal to do,” House Speaker Pete Schwartzkopf




Numbers: New Jersey Adult-Use Application Edition


  • 79, number of annual license applications accepted by the NJ CRC so far
  • 547, number of conditional license applications accepted 
  • 37%, percentage of applicants identifying as micro-businesses 


  • 245, number of Class 1 (Cultivation) applicants
  • 134, number of Class 2 (Manufacturing) applicants
  • 232 number of Class 5 (Retail) applicants

April 7th, 2014


BREAKING: HB 371 and HB 372 were just introduced in the Delaware House.


From Zoë Patchell of the Delaware Cannabis Advocacy Network (DCAN)


"HB 371 is a simple majority bill because it doesn’t include the industry framework language that is triggering the 3/5ths filibuster-like supermajority vote hurdle. HB 371 simply increases freedoms and rights for adults and removes penalties for conduct that is now legal in 18 states and the District of Columbia. 


Companion legislation, HB 372, which still requires the 3/5th supermajority vote hurdle, will convert Delaware’s current cannabis market into a legal industry under the State’s alcohol code, much like previous versions of the legislation. The bill includes all the social equity and micro business language, as well as the consumer safety protections and many other provisions that we have fought to have included. 


HB 372 is relatively similar to the previous legalization bill, HB305. Key changes include technical corrections made to distinguish separate definitions for hemp and cannabis, as not to interfere with existing hemp laws, and moves the licensing period up to try to make up for the numerous delays and allow Delaware to be competitive with surrounding states’ markets. Full summary coming soon."


March 31, 2022


New Jersey

 

  • “It is clear that we are not quite ready to open up the adult-use market in New Jersey,” said Commissioner Marina Del Cid-Kosso.


  • After last Thursday meeting’s curveball (next meeting isn’t until 5/24/22!), NJ Senate President Nick Scutari is forming a special legislative committee to review the delays and get explanations on the repeated hold-ups. The schedule and membership roster for the special committee have yet to be determined but no expected delays have been announced so far!


  • The 50 conditional cultivation licenses and 18 conditional manufacturing licenses approved include 32 standard cultivators and 18 micro-cultivators as well as 12 standard manufacturers and 6 that qualify as a microbusiness.  Unfortunately, the complexity of the conditional license conversion process means it will be near the end of 2022 before the first plants are ready for harvest. (Heady NJ’s Dan Ulloa goes deeper into the demographics with this stellar piece.)



 

New York

 

  • Today marks the one-year anniversary of MRTA being signed into law by former Governor Cuomo


  • Etain, one of New York’s ten registered operators, with locations in Manhattan, Yonkers, Kingston and Syracuse, is being acquired by a Toronto-based company named RIV Capital.  Not surprisingly, RIV Capital is heavily funded by The Hawthorne Collective, Scotts Miracle-Gro’s cannabis-focused subsidiary.  Etain’s three female founders, Amy, Hillary and Emily Pekcham, will stay on in leadership roles.


  • New York’s anticipated potency tax could lead to $70 1/8ths with benchmarks of $.005 per milligram for flower, $.008 for concentrates and $.03 per milligram for edibles.  This is in addition to the 9% retail tax and 4% local tax and may be a blessing in disguise as it inadvertently pushes cultivators to focus more on terpenes than THC.   



Connecticut


  • The Department of Consumer Protection is currently accepting license applications for 
  • Disproportionately Impacted Area Cultivators (ends May 4, 2022)
  • Retailers (ends May 4, 2022)
  • Micro-cultivators (ends May 11, 2022)
  • Delivery Service (ends May 18, 2022)
  • Hybrid Retailer (ends May 25, 2022)
  • Food and Beverage (ends June 1, 2022)
  • Product Manufacturer (ends June 8, 2022)
  • Product Packager (ends June 15, 2022)
  • Transporter (ends June 22, 2022)


  • There is no cap on the number of applications that can be submitted and applicants were instructed to take their time completing submissions because there is no benefit to submitting early.


  • Retail sales are still slated to begin by the end of 2022



Vermont


  • The CCB met Monday, 3/28/22, and have so far received 427 applications for pre-qualification, including cultivators, testing facilities and product manufacturers and 66 potential retailers.


  • An application portal will be launched, Friday, 4/1/22, for Tier 1 cultivators (up to 1,000 ft2)


  • Online applications for Tiers 2 through 5 will being on 5/1/22


  • Online applications for retailers will begin on 9/1/22


  • Licenses will be awarded according to the following priority:


1. Social equity groups including Black-owned and Latino-owned businesses as well as businesses where owners can show a disproportionate impact from previous cannabis regs


2. The “Expedited Tier” that includes minority groups such as women-owned or LGBTQ-owned


3. The remaining public


  • Retail sales pegged to begin October 1st.





Maryland


  • In a hearing before the Senate Finance Committee, members revised Senator Brian Feldman’s SB 833 to more closely align with Delegate Luke Clippinger’s HB 837 and HB 1.  The voters will get their say in at the ballot in November and the legislature will then frame out the regulations, so it’s almost a given that Maryland and Rhode Island will both join adult-use states as #19 and #20. 




Delaware



  • Instead of simply stifling adult-use legislation, Columbia Care is now trying to get HB 305 amended to protect their interests as a legacy medical operator.  To call one of the weakest medical cannabis program in the country “highly successful” is disingenuous at best.


This email template went out to their patients earlier this week:


“Like the 14,000 other Delawareans, I rely every day on the medical cannabis program for its accessible, life-changing medication.


As the state considers adult-use legislation (HB 305), I urge you to amend the bill to ensure that the medical cannabis program will continue to thrive alongside the newly created adult-use program. The bill, as currently written, puts the highly successful medical cannabis program at risk and threatens patient access to critical, life-changing medications that so many Delawareans rely on. 


Amending the legislation to ensure inclusion of the medical cannabis program will not only protect patient access, but also ensure the viability for medical operators that provide essential medication and have brought hundreds of local, well-paying jobs throughout the state. 


As a proud Delawarean, I urge you to amend HB 305 and bring an adult-use program to Delaware that works for everyone.”


  • In other medical cannabis embarrassment for the First State, the Medical Marijuana Oversight Committee is potentially on the chopping block via HB 356.  The synopsis isn’t quite as glowing as ColCare’s assessment with the underlying reasoning being that the Office of Medical Marijuana “oversees a functioning medical marijuana program without support from the Committee.” 


Basically, the last bastion of hope for patients’ needs to be best met is being taken away because of it’s own lack of efficacy.  Bill sponsors Representantive Sherry Dorsey Walker and Senator Kyle Evans Gay failed to respond to requests for comment on how this could possibly improve the medical cannabis program or the well-being of the patients that rely on it. 




Numbers: Cannabis Pricing Edition
(from Matt O’Brien at Workweek/The Green Paper)


  • $294, average price for an ounce in the US in 2022 (licensed + illicit)
  • $325, average price for an ounce in the US in 2010


  • $500, top price for an ounce in Ireland in 2022
  • $400, top price for an ounce in Missouri in 2022
  • $100, top price for an ounce in California in 2022


  • $8 billion, amount spent on illicit cannabis in California in 2021
  • $6 billion, amount spent on illicit cannabis in Texas in 2021


  • $2.82 billion, amount spent on illicit cannabis in Canada in 2021
  • $4.37 billion, amount spent on license cannabis in Canada in 2021


Other illicit US markets in 2021


  • $3 billion, North Carolina
  • $2.2 billion, Georgia 
  • $1.8 billion, Indiana
  • $1.5 million, Wisconsin
  • $1.1 billion, Kentucky 
  • $1.1 billion, South Carolina



March 24, 2022



New Jersey


UPDATE: (no adult-use sales for you!)

68 entities were awarded licenses to cultivate or manufacture at today's meeting, but no ATC expansion candidates were greenlit.  Executive Director Jeff Brown said that there were a range of concerns, including whether companies would be able to produce enough supply to meet demand from the public while continuing to serve their patients.


The commission also expressed concern over whether medical marijuana sellers had a plan in place for ensuring patients could physically access cannabis if dispensaries become too crowded. He said that a few appeared to have enough supply, but that regulators also had questions about whether applicants were meeting other requirements such as establishing labor peace agreements with unions.


“We are confident in our ability to collaborate to fix these issues and work together to get this market off the ground quickly,” Brown said at the meeting.

 

  • The March meeting of the CRC started at 1:00 today and is in Executive Session as of this writing. There will be an update on the eight requests the commission has received for expanded certification allowing existing medical dispensaries to sell to the general public.  If they allow some or all of these operators to start selling to the public on May 1st as expected, only five companies are rumored to be ready.  (Because of the 30-day notification period, the earliest sales could possibly begin is the last week of April, leaving the Garden State’s first adult-use 4/20 celebration on hold until 4/20/23.)


  • ATCs seeking expanded certification need:
  • municipal approval (DOH’s Jeff Brown says lack of this is most of the hold up)
  • relevant necessary supply to be able to serve their patient base
  • operational capacity to continue to serve and even expand access.


  • The CRC is planning to “beef up” staffing at the agency to mitigate the processing delays 


  • From the “at least they’re trying” pile, the New Jersey Office of Innovation is now a providing a free, easy-to-use, and super helpful personalized tool to help new cannabis entrepreneurs navigate setting up their business. CRC Facebook post


 

New York

 

  • Not unexpectedly, Columbia Care’s acquisition of Cresco shook the industry.  Each company has the maximum allowed medical dispensary footprint in New York so ColCo (or CresCare?) will control 8 total storefronts in Rochester, Huntington, Hew Hartford, Bardonia, Manhattan, Riverhead and two in Brooklyn. 


Connecticut


  • Today, the Department of Consumer Protection began accepting lottery applications for transporter licenses. The application period for transporter licenses will close at 11:59 p.m. EST on June 22, 2022.


  • Retail sales are still slated to begin by the end of 2022



Vermont


  • About one dozen towns have opted-in officially so far, as is required to have a retail store within its jurisdiction.


  • Retail sales pegged for October 1st.




Rhode Island


  • Kyle Jaeger’s comprehensive coverage of Rhode Island’s impending legalization is second to none and it looks like a foregone conclusion that some version or amalgamation of the many competing measures being considered could very well make RI the 19th adult-use state.




Maryland


  • MD is another strong contender in the race to be #19. The House Appropriations Committee advanced a Senate-approved budget bill that would provide $52 million to support the implementation of adult-use, facilitate expungements and fund a “disparity study” to better understand the barriers to entering the cannabis market.  The measure is contingent on HB 837 which sets initial rules if voters approve the November ballot referendum to legalize.  Again, Kyle Jaeger’s deep dive spares nothing.


  • Curio Wellness co-founder Wendy Bronfein has spearheaded the Curio Investment Fund to provide $30 million in capital funding for women, minorities and disabled veterans from Maryland, Pennsylvania, Virginia, New Jersey, Massachusetts, Florida, Michigan, Missouri, Illinois and Ohio.  WJZ video




Numbers : ColCare/Cresco Edition


  • $2 billion deal (all stock)
  • 99 dispensaries 
  • 32 cultivation and manufacturing facilities
  • 17 state footprint (not including DC)
  • Largest MSO by revenue

        ($822 million Cresco + $474 million ColCare = $1.28b in 2021)

  • #1 wholesaler of branded cannabis products





Eastern states “ready”  NJ, CT, NY, VT, VA 

Eastern states “to get ready for”  RI, MD, PA, DE, OH





March 17, 2022




New Jersey


  • Adult-use retail applications opened on Tuesday 3/15 and nearly 200 groups have submitted so far. It is expected that successful applicants are 6 to 8 months from being operational and open for business.


  • The 90-day review period for cultivation license applications has been extended. Executive Director Jeff Brown asked for patience in the review process, which has become more time consuming than expected because of a decision to allow applicants to amend their submissions if found to be flawed.


  • The March meeting of the CRC will be next Thursday, 3/24, and there will be an update on the eight requests the commission has received for expanded certification allowing existing medical dispensaries to sell to the general public. 



New York

 

  • The Office of Cannabis Management released information about the 34% of municipalities opting out of retail sales and the data (Excel sheet) includes those that filed through the state portal, differing somewhat from the more accurate Rockefeller Institute Marijuana Opt Out Tracker. Sales could potentially take until 2024 to roll out, but will New York state wil be the second largest market in the country when it does.

.

  • The application portal for hemp farmers to seek conditional adult-use cannabis cultivation licenses opened on Tuesday 3/15



Connecticut


  • Lottery applications for cannabis product packager licenses are available as of today.


  • Retail sales are still slated to begin by the end of this year.



Vermont


  • The Cannabis Control Board met on Monday, 3/14 to formally adopt Rules 1, 2 & 3.  Rule 1 enumerates all components of licensing, Rule 2 covers the comprehensive regulations for cannabis establishments and Rule 3 handles medical cannabis. 


  • The CCB also started accepting “pre-qualification” applications yesterday, 3/16. It is a voluntary process with the $500 fee deferred, to ascertain entrepreneurial interest and see how many retailers, testing facilities, cultivators and manufacturers. Applicants will be required to submit an operating plan with supporting documentation as well as a background check for each license.



New Hampshire


  • Soon to be the only New England state not to legalize, New Hampshire has long been victim of gubernatorial opposition. Governor Chris Sununu has, for the first time, acknowledged “I think it’s going to happen in New Hampshire eventually, it may be inevitable.” He even suggested that HB 1598, a current bill that would regulate cannabis as alcohol, was the right way to do it and would not veto it if it got to his desk. 



Pennsylvania


  • The third and final hearing of the PA Senate Law and Justice Committee concerning how a potential adult-use market would be structured took place on Monday, 3/14 and now opponents are up in arms about the lack of input from drug and alcohol professionals, chiefs of police. Decades of failed WOD policies apparently don’t count, nor do the sums paid to lobbyists by opposition leaders from Big Pharma, Big Alcohol and Big Tobacco. Pennsylvania Family Institute spokesman Dan Bartkowiak went right from the reefer madness playbook with more testimony needed “about the real harms of legalizing an addictive and harmful drug like marijuana for recreational use.”


  • A Senate bill could be crafted in 6-8 weeks and be introduced as early as June.



Delaware


  • The full House vote on HB305 last Thursday took a dramatic and sour turn due to embarrassingly partisan political BS. The good news is that bill sponsor Rep. Ed Osienski (D) is hoping to introduce a new bill this session, potentially with Rep. Mike Smith (R) ensuring his caucus doesn’t pull another fast one.



Numbers


  • A poll of 635 Maryland adults found that 62% of them support legalization, including 65% of Democrats, 65% of Independents and 54% of Republicans


  • Vermont (10%), Rhode Island (10.2%), Maine (10.9%) New York (11%), DC (11.9%) and Massachusetts (12.8%) all ranked in the top 10 for lowest percent of establishments that drug test according to the Bureau of Labor Statistics. Unsurprisingly, West Virginia (26.5%), Georgia (23.8) and South Carolina (21%) were amongst the highest. 


  • Adult-use sales in New Jersey are newly forecast to top out at $775m in 2022, $1B in 2023, $1.8B in 2024, $2.1B in 2025 and $2.4B in 2026 while medical sales are conversely expected to decline from a peak of $350M in 2023 to as low as $270M by 2026.






Eastern states “ready”  NJ, CT, NY, VT, VA 

Eastern states “to get ready for”  RI, MD, PA, DE, OH

 






March 10, 2022



New Jersey


Adult-use sales to start May 1st, according to Boris Jordan, CEO of Curaleaf.  He might be expounding false optimism, but he’d also be the one to know when the CRC will finally start making up for lost time. Let’s just hope cultivation is sufficient to meet demand and  patients’ needs aren’t disrupted as is feared in newly legal adult-use markets like Montana. 



New York


Applicants with prior cannabis convictions (or family members negatively impacted by the WOD) will get the first round of retail licenses ahead of existing medical operators.  According to OCM Executive Director Chris Alexander, 200
“justice involved” applicants are expected to receive the priority licenses with retailers potentially coming online by the end of 2022. 

 



Connecticut


Lottery applications for the first 3 Social Equity and 3 general Product Manufacturer licenses opened today and will close June 8th.


The lottery round for the first 5 Social Equity and 5 general Food and Beverage licenses opened last week and will close June 1st. 


  • Retail sales are still slated to begin by year end.



Vermont


Town Meeting Day measures led to at least 25 more opt-ins, including Rutland, Manchester, Barre and Essex


  • Retail sales pegged for October



Rhode Island


New legislation has been introduced that will allow up to 33 retails throughout six zones and allows home cultivation.  The bill establishes an effective tax rate of 20% (10% excise tax, 7% sales tax, 3% local tax) and stores could open by year end.



Pennsylvania


The PA Senate Law and Justice Committee, chaired by Republican Senator Mike Regan, assembled 3 fantastic panels of industry experts to testify at a second of three hearings on adult-use legislation. The hearing focused on the experiences of other states that have enacted legalization and a broad overview of the experiences in those markets.  Key takeaway: Colorado’s estimated 80:20 (licensed:illicit) achievement will definitely have PA following some of their playbook.    
watch     read the expert testimony



Delaware


Now that the General Assembly is back in session, HB305 is expected to get a floor vote in the House
today.  The bill passed out of House Health Committee 10-4 and Appropriations 4-2 so this is the last step before it goes to the Senate.



DC 


The latest spending bill coming out of Congress contains a rider continuing to block the implementation of licensed sales.  The rumble of the illicit market cheering can allegedly be heard everywhere within a two-hour drive. 




Numbers


  • Pre-roll enthusiasts, 47% of whom are younger than 35, have pushed sales of multipacks to 47% of the overall pre-roll market.  Pre-rolls as a category have surpassed edibles with annual sales growing nearly 39% since 2020. 


  • Projected state tax revenues from cannabis have increased substantially YoY in newer states like Illinois (6x > $315m), Massachusetts (2x > $104m) and Michigan (2x > $75m) and that kind of growth makes medical state legislators lean greener and greener as they consider adult-use implementation.


  • National polling suggests that those supporting legalization and identifying as Republican now outnumber those opposed 50% to 49%. 

(Democrats are 71% to 28%, Independents are 83% to 16%)




Eastern states “ready”  NJ, CT, NY, VT, VA 

Eastern states “to get ready for”  RI, MD, PA, DE, OH

 



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