According to Arizona social equity applicants and community members, the state’s cannabis program isn’t operating as intended.

The passage of Proposition 207 in 2020 legalized adult-use cannabis, and part of the law required that social equity applicants meet specific criteria. This included having annual income 400% less than federal poverty level, having a cannabis-related conviction on their record (or knowing someone close who did), and living in a zip code that has been disproportionately affected by the War on Drugs. The program stated that its goal is to “promote the ownership and operation of marijuana establishments and marijuana testing facilities by individuals from communities disproportionately impacted by the enforcement of previous marijuana laws.”

Alicia Deals and 1,301 other applicants applied for the license in 2021, and at the time only 26 licenses were available. A lottery was held in 2022 to determine the winners, one of which was Deals. “We went for it. And we won, and we won in the most grandest fashion,” Deals told the Arizona Mirror.

While Deals’ business continues to thrive, other social equity applicants decided to sell their licenses to corporate companies or other private organizations. According to a report from the Arizona Center for Investigative Reporting, 11 of the 26 social equity licenses were owned by corporate dispensaries, while seven were purchased by private investors and half of the licenses were associated with shell LLCs. Deals partnered with Cookies to open a dispensary in Tempe, Arizona in August 2023.

Marijuana Industry Trade Association founder and president, Demitri Downing, said in a statement that the program’s reality isn’t what the voters approved. “I would argue that the social equity licensing programs that exist in cannabis have done the exact opposite of what needed to be done,” Downing said. Others who criticize the current program also added that 26 licenses, in comparison to the state’s 170 dispensaries, isn’t enough to allow social equity applicants to take part in the industry.

The Arizona Department of Health Services (ADHS) claims that it conducted the lottery with “integrity and in full accordance with the law,” but that it doesn’t have the “legal standing to intervene in the sale of a dispensary.”

When the lottery was held, numerous advocates and lawyers called for amendments to improve the program. Arizona Cannabis Bar Association president Gary Smith claims that the ADHS wasn’t thorough enough. “They really could’ve done a myriad of different things,” said Smith. “But they’re a health agency, they’re not a social do-good agency. They were not well suited for it.”

One problem Smith identified, according to the Arizona Mirror, was that social equity license holders weren’t forced to keep their licenses, and because they were economically disadvantaged, success was far from guaranteed. “You basically said the only people qualified for the social equity licenses are people who are almost guaranteed to fail,” said Smith. “So resultantly, small surprise—not really—most of these license winners made a good decision for themselves and sold those licenses to people or companies that were more capable and able to actually operate.”

This is why social equity licenses were sold off to more successful companies such as Copperstate Farms, Mohave Cannabis Co., and Mint Cannabis—all of which own numerous dispensaries across the state in partnership with social equity applicants. “No one else made it, to say it plainly,” Deals explained. “And a lot of people, even from the beginning, didn’t really have a chance.” Although Deals has experienced great success working with Cookies, other social equity applicants were taken advantage of by those larger companies.

Deals’ father was sentenced to 18 years in prison for a cannabis-related conviction, which inspired her to apply for a license. “But I told my dad, ‘You know, it’s a gamble for them, it’s a guarantee for us.’ That we deserve it,” said Deals. “You know, and if not us, then who? And if not now, then when?” Deals has also partnered with Nirvana Center Dispensaries, which allows her to maintain 100% equity ownership.

Another part of Prop 207 was dedicated to expunging cannabis-related convictions from residents’ records using $4 million in funds for nonprofit organizations to spearhead expungement services. Data from 2018 showed that 58% of the Hispanic population and 16% of Black people were still in prison for cannabis offenses, while most recent data shows that the numbers have decreased to 32% Hispanic people and 5% Black people.

Arizona cannabis lawyer Jimmy Cool commented on the communities that were largely affected by the War on Drugs. “We went out, we arrested disproportionately 80% Black men to white men for using marijuana, but we know Black men use marijuana at the same rate as white men,” said Cool. “Well then, that means that in Black communities we took fathers, we took brothers out of those communities. We took away their revenue and their income. We drove down the property values because of the crime rates.”

He continued by saying that the social equity cannabis licenses didn’t guarantee that it would benefit the existing communities, and that the ADHS missed an opportunity to prevent applicants from selling off their licenses to the highest bidder. “I guess what’s frustrating about this program is that I don’t think you were ever going to create a perfect social equity program,” Cool admitted. “No matter what you create, there would be some constituency that wasn’t adequately served, some unforeseen externality or consequence.”

While it’s not possible or likely that the law will change soon, Deals said that her priority is to continue to support her community, and especially people imprisoned for cannabis crimes. “Show love to the incarcerated,” said Deals. “We all know someone and just even the smallest things helps and matters for them.”

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The New York Cannabis Control Board (CCB) has officially approved rules that allow adults over 21 to cultivate cannabis at home, as of June 11. Now adults can care for a maximum of six plants, with three immature plants and three mature. Residences with more than one adult can have up to 12 plants (six immature and six mature).

Additionally, new rules take place for possession in regard to a person’s crops. “You can have up to five (5) pounds of trimmed cannabis and the equivalent weight in concentrates in or on the grounds of their private residence,” the Office of Cannabis Management wrote in its law breakdown. “Individuals can carry and transport up to three (3) ounces of cannabis and 24 grams of concentrates within the state.”

Cannabis can be grown anywhere that a person owns or rents such as a “room, home, apartment, mobile home, co-op, or other residential spaces.” Landlords cannot refuse to rent a space to a person, or penalize a tenant, unless they are at risk of losing federal funding or benefits.

The rules also cover how residents can legally obtain cannabis plants. Seeds will now be available at commercial retailers, but immature plants can also be purchased by numerous licensed cannabis businesses as well.

The OCM warned of the responsibilities of the grower, specifically when it comes to processing their flower into other cannabis products. “If you’re making at home products with cannabis, like tinctures or butters, the use of flammable materials is prohibited because they are not safe for home use,” the OCM stated. “Consider alternative extraction methods such as heat, water or fermentation.”

The OCM also mentioned the need to reduce cannabis odors. “You must take reasonable measures to prevent cannabis odor from becoming a nuisance to neighboring residents such as co-planting items like lavender in an outdoor garden or using a carbon filter for indoor cultivation,” the information document continued. Lastly, the agency warned growers to cultivate away from the public eye, either by installing fences or tall, busy plants to add privacy to outdoor property.

In the realm of safety, the OCM suggested that growers choose LED lights to reduce power usage and risk of electric overload and recommended that growers seek expertise from an electrician about the setup. It also stressed the importance of proper ventilation to ensure that cannabis does not become moldy.

These rules were originally approved in February 2024, which was followed by a 60-day public comment period. The CCB voted on final regulations for cultivation on June 11.

Also on June 11, New York Gov. Kathy Hochul announced that the CCB has approved another 105 adult-use cannabis licenses. “New York is building a robust and equitable legal market that is driving significant economic growth within our communities,” said Hochul. “The issuance of 105 additional adult-use licenses is just the next step in developing the nation-leading industry New Yorkers expect and deserve.” This includes 25 cultivator licenses, 22 distributor licenses, 22 microbusiness licenses, 19 processor licenses, and 17 dispensary licenses. Additionally, 45 out of these 105 licenses are transitioning adult-use conditional cultivators (AUCC) or adult-use conditional processors (AUCP).

During the meeting, the CCB also denied licenses to 100 applicants that weren’t eligible or had already received a license from a different application.

CCB chair Tremaine Wright said in a statement that progress continues to push New York’s cannabis industry forward. “We continue to prioritize our market’s expansion, and commitment to our nation-leading cannabis market, by providing New Yorkers with a wide range of choice and opportunity to participate,” Wright said. “Today’s license approvals, and the introduction of home cultivation brings us one step closer to setting a new standard that centers growth, equity, and safety.”

So far in 2024, the CCB has approved a total of 654 cannabis licenses, while there are currently 132 adult-use cannabis dispensaries operating in the state.

Meanwhile, cannabis sales continue to increase in the state as well. The governor and OCM confirmed that in May, cannabis sales reached $4.4 million (for a total of $46.2 million). They project that by early June the state will have collected more than $200 million in sales.

The governor’s office attributes the success of its Social and Economic Equity (SEE) program as one of the reasons why the industry is thriving. The press release stated that 57 of the 105 new applicants (about 54%), are SEE applicants, which breaks down into “five Community Development Initiative participants, seven distressed farmers, 22 minority-owned businesses, seven service-disabled veteran-owned businesses, and 16 women-owned businesses.”

In May, the governor’s office stated that OCM executive director Chris Alexander would be stepping down this September following Hochul’s reevaluation of the agency and its leadership. The office described Hochul’s action as “an operational overhaul” which “follows the release of a 30-day assessment conducted by a team of individuals under the leadership of the Commissioner of the Office of General Services Jeanette Moy, that identified significant structural limitations to the Office of Cannabis Management that have affected the agency’s ability to fulfill its mandate to efficiently establish New York State’s cannabis marketplace.”

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In Delaware, a new bill is being proposed to allow medical cannabis businesses to also sell adult-use cannabis once the state’s adult-use sales begin.

House Bill 408 was recently introduced on May 16 by sponsors Rep. Ed Osienski and Sen. Trey Paradee. Delaware’s Marijuana Control Act was enacted on April 27, 2023 without the signature of Gov. John Carney, and went into effect starting on August 1, 2023. It created four different license types but none of which currently permit medical cannabis compassion centers to take part in the upcoming launch of adult-use sales. If passed, HB-408 would create a temporary conversion license that medical cannabis businesses can apply for in order to sell adult-use cannabis, and if the application is approved, the license would expire after four years have passed, and can then be renewed again.

“As Delaware moves closer to the launch of recreational marijuana sales, it’s important that we continue exploring and implementing policies that will bolster the program’s success and support both new and existing retailers,” Osienski said in a press release. “Our experienced compassion centers are well-equipped to navigate this transition, and the funds generated from their conversion license fees will serve as a vital funding source for social equity applicants, empowering them to kickstart their ventures.”

According to HB-408, the medical cannabis business must currently be eligible for renewal within the medical program, must be able to show that it can meet market demands (in addition to verify its plans for continued service in medical cannabis and show support for the social equity program), and have a signed labor peace agreement with a labor organization. Applicants must also pay the fee for a conversion license, which is currently set at $100,000 per license. The proceeds from the fee will be used to give financial assistance to conditional license holders who are also social equity applicants.

“For us, passing the Marijuana Control Act was always about our desire to replace an illegal market that has overwhelmed our court system and damaged lives with a legal, regulated and responsible industry that will create thousands of good-paying jobs in Delaware,” Paradee said. “We also need to protect the jobs created by our compassion centers, who have already put in the hard work of standing up an industry and have the capacity and infrastructure to meet demand on Day 1.” Paradee added that providing an avenue for medical cannabis businesses to participate in the adult-use market will aid communities harmed by the War on Drugs.

If HB-408 became law, it would require that the Delaware Office of the Marijuana Commissioner open up applications between August 1-November 1, 2024. For now, it heads to the House Economic Development/Banking/Insurance and Commerce Committee.

Earlier this year, Osienski introduced another bill, House Bill 285, which aims to expand the Delaware medical cannabis program. Medical cannabis was first legalized in Delaware in 2011 but sales didn’t begin until 2015 when the first dispensary began operation.

If passed, HB-285 would allow senior citizens to become medical cannabis patients, permit healthcare providers to determine whether or not medical cannabis could be useful for a patient, and improve the cannabis registry ID card process. “With the full legalization of adult-use recreational marijuana last year, my colleagues and I agreed that our medical marijuana law needed to be updated to help the people who rely on those products get the therapy they need,” said Sen. Kyra Hoffner, according to WBOC. “These changes will allow healthcare providers to make sound decisions about which treatments best fit their patients, and make those treatments more readily accessible to people who need them the most. I want to thank my colleagues in the General Assembly for continuing to support a responsible and reasoned approach to both recreational and medical marijuana in the First State.”

HB-285 is currently waiting on Gov. Carney’s desk for a signature or veto.

In April, Osienski and Paradee, in addition to state treasurer Colleen Davis, filed House Bill 355, which would implement state protections for banks who seek to serve licensed cannabis businesses.  This would apply to banks as well as “credit unions, armored car services, and providers of accounting services” which wouldn’t be subject to prosecution under Delaware state law. “This is really a public safety issue,” said Paradee last month. “We do not want any of the current medical cannabis providers or the coming recreational cannabis providers to struggle with that issue.”

While these bills await their respective approvals, many eagerly await the news of when adult-use cannabis sales will begin. While an official date has not yet been verified, the most recent launch estimate is currently looking toward March 2025, according to Delaware Marijuana Commissioner Robert Coupe told the Joint Finance Committee in February.

In the meantime, a slew of other bills recently headed to Gov. Carney’s desk for approval, such as House Substitute 1 for House Bill 162, which would legalize human composting. If approved, it would allow licensed morticians to care for the deceased as they decompose by mixing the bodies with wood chips, straw, and other organic materials. After fully decomposed (estimated to take approximately 30 days), the compost would be returned to the family to use as they see fit.

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Kaya Holdings Inc., which became one of the first publicly traded companies to hold a cannabis license when it began operation in Portland, Oregon in 2014, recently announced that it has been approved to hold a license for therapeutic psilocybin.

The announcement came on May 7, stating that Kaya Holdings officially owns a Psilocybin Service Center license from the Oregon Health Authority. The business will be called The Sacred Mushroom, which is set to be a “full-service psychedelic treatment center that will allow clients to receive Psilocybin Treatments in a setting offering significant experience differentiators and concept innovations.” It also boasted that the business will be up and running “within the next 30 days,” which would be sometime around the first week of June.

The Sacred Mushroom is located atop a building in downtown Portland and contains 11,000 square feet. The idea behind the layout is a spacious “room to roam” design, with “unsurpassed comfort, optional private rooms, activity zones with yoga, listening stations, journaling chairs and art expression, a special “sensation room,” a relaxing indoor garden and customized experience through our proprietary Synergy By Design ‘your setting, your way’ program.”

The press release cited data from Precedence Research, which stated that the U.S. behavioral health market was valued at $83 million in 2022, and projected a value increase to $136 billion by 2032.

Kaya Holdings Inc.’s OTCBQ market symbol is KAYS, and the company currently holds three cannabis licenses in total: one in Portland, Oregon, and two in Greece.

According to KAYS CEO Craig Frank, psilocybin is the next frontier in psychedelic medicines. “The introduction of legal psilocybin treatments in Oregon marks the beginning of perhaps the most disruptive force in the mental health sector, transforming treatment protocol and redirecting resources,” Frank said in a press release. “Our distinctive guest experience model, the environment offered by the size and design of the facility and the dedication of our staff are designed to make The Sacred Mushroom the premier choice for anyone turning to psychedelics for relief or transformation. For these reasons I believe KAYS is well positioned to become a leader in the ‘delivery of care’ of psychedelics.”

The state’s first psilocybin service center, EPIC Healing Eugene, opened in June 2024. “Our services focus on deep healing work, mindfulness, empowerment, spirituality, and transformation through psilocybin facilitation and integration,” EPIC Healing Eugene stated on its website. “We teach self-help strategies that support self-directed personal development and brain change. We help you prepare for a healing shift that will help you get the most out of your experiential journeys. Our skilled and supportive staff offer preparation sessions, followed by integration sessions to help you better recognize and incorporate the gems of insight from your psychedelic experiences into your daily life.”

Three months later, more than 3,000 people were on the waitlist despite high prices of entry, while many others praised their experiences.

The Sheri Eckert Foundation is a nonprofit organization that was founded in 2021 by Sheri Eckert. She was the co-creator of Measure 109, which was passed by Oregon voters to establish legal psilocybin service centers, however she passed away in December 2020 before she could see the results of the law she helped to build. Through the Sheri Eckert Foundation, Eckert’s goal to “receive and allocate funds to individuals and organizations operating in Oregon’s legal and regulated psilocybin facilitation program” lives on.

In 2023, the Sheri Eckert Foundation gave out $300,000 to 76 scholarships for psilocybin facilitation students. Most recently as of early May, the foundation is aiming to raise $1 million to give out to those who need funds to legally use psilocybin in the state. So far, $176,218 has been collected from Proteus Fund, Full Potential Fund, and Dr. Bronners.

There are 20 psilocybin service centers currently operating in Oregon, according to Willamette Week. However, one called the Journey Service Center recently closed down due to lack of participants. Founders Jenna Kluwe and Clint Martin opened the center in September 2023 and service an estimated 100 customers. According to Willamette Week, the center was able to serve about 10 people per day, with each participant paying $2,000 per day.

“My eyes were bigger than my stomach,” said Martin, who invested around $1.2 million into the business.

Kluwe also told the news outlet about her feelings on the closure. “I’ve absolutely loved doing this,” said Kluwe. “The numbers just weren’t where they needed to be.”

Susanne Ulvi, a licensed psilocybin facilitator who previously worked at The Journey Service Center, said that other centers faced slowed business this past winter. “Nobody seems to be filling their rooms,” Ulvi explained.

While Oregon’s psilocybin service centers’ future success is uncertain, studies on the efficacy of psilocybin as a medical treatment continue to grow. Researchers have found that psilocybin use enhances meditation, isn’t associated with paranoia risk, weakens a person’s response to angry faces, and so much more. One study found that nine out of every 10 Americans believe that therapeutic psilocybin use for therapy and/or well being is “morally positive.”

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The Minnesota state Senate last week approved a bill to accelerate the licensing of cannabis businesses, narrowly approving the measure by a vote of 34-32. If passed by the legislature and signed into law, the legislation would set the stage for cultivators to begin growing regulated weed by the end of the year.

Minnesota lawmakers passed legislation to legalize recreational marijuana in May 2023, with provisions allowing adults to possess up to two ounces of cannabis in a public place and up to two pounds of weed at home beginning on August 1 of last year. The measure also allows adults to grow up to eight cannabis plants at home, including four mature, flowering plants.

The bill also legalized the cultivation and sale of regulated cannabis by licensed businesses, with dispensary sales of recreational marijuana anticipated to start in January 2025. Under legislation passed by the Minnesota Senate on Friday, state regulators would be able to issue preliminary approval for cannabis cultivators beginning this summer. Supporters of the bill say the legislation will allow prospective regulated cultivators to line up funding for their operations, secure a business location and complete other tasks related to launching their business.

“This newly regulated, legalized and regulated industry is in its infancy, and we’re here to continue the work we started last year,” said Democratic Senator Lindsey Port, according to a report from the Albert Lea Tribune. “Like any new industry, it will not be fully grown on day one. This bill works to ensure a successful market launch and support the industry and Minnesotans involved in this industry as it grows and develops.”

The legislation also tasks the Minnesota Office of Cannabis Management with regulating hemp-derived cannabinoids and medical marijuana, which are currently regulated by the state Department of Health. The office recommended many of the provisions of the bill to help facilitate the timely transition to regulated sales of recreational marijuana. Under the bill, companies given early approval to grow adult-use cannabis would temporarily be subject to the state’s existing rules for medical marijuana cultivation until the Office of Cannabis Management finalizes recreational marijuana regulations later this year.

Republican Lawmakers Oppose Legislation

The bill was opposed by many Republican lawmakers who expressed concerns that establishing temporary regulations that might vary from the forthcoming permanent rules could be problematic. They also balked at allowing businesses to begin growing recreational weed before they are licensed by the state.

“I understand that there are folks that want to have the cannabis industry open and running today,” said Republican Senator Jordan Rasmusson. “But I think for the health and safety of Minnesotans for public safety, for just regulatory integrity, and an open and transparent process that would allow Minnesotans to engage on rulemaking, it’s really important that we don’t do an end-around.”

Opponents of the bill are concerned that accelerating the pace to approve regulated cultivators could lead to unintended consequences. The also were concerned about cannabis being obtained by young people and proposed an amendment that would make possession of weed by minors a misdemeanor criminal offense.

“How can we say it’s wrong and a petty misdemeanor or maybe even a misdemeanor for repeat offenses for a child to be drinking a beer, but it’s okay for them to be walking down the street with a bag of marijuana or smoking a joint?” said Senator Eric Pratt. “Where’s the consistency in that?”

Democratic Governor Tim Walz said that he is monitoring developments in the legislation and noted that he is aware that some people are not comfortable with the prospect of allowing cultivation to begin by the end of the year, stressing that the regulations must include quality standards for cannabis cultivators.

“We certainly hear people on this. I think there’s some potential there,” Walz told reporters earlier this week. “We’re trying the best we can, but we’re not going to cut corners.”

The bill was approved with amendments by the Minnesota House of Representatives last month. The legislation will now head to a conference committee, where lawmakers from both chambers of the legislature will reconcile differences between the two versions of the amended bill.

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After officially legalizing cannabis for adult use in New York, the journey that followed has been fairly tumultuous as multiple roadblocks have delayed shop licensure and hindered the legal industry’s full potential.

A number of lawsuits and a change in gubernatorial leadership delayed dispensary licensure and openings, in turn allowing the illicit market to flourish with those shops drastically outnumbering the amount of legal dispensaries in the state.

As New York growers, business owners and myriad cannabis professionals continue to wait for their licenses to be approved, some New York lawmakers are embracing a different approach (that would likely extend the wait for industry hopefuls even longer).

Namely, Queens Community Board 9 Chairwoman Sherry Algredo argued that New York should refrain from adding any licensed cannabis shops to her district until authorities are able to shut down those operating illegally, according to a New York Post report. Community Board 9 covers the neighborhoods Key Gardens, Richmond Hill, Ozone Park and Woodhaven.

Ongoing Concerns About New York’s Bustling Illicit Weed Market

“The Board received numerous concerns from residents regarding the proliferation of illegal smoke shops already operating in our district and the negative impact these establishments have had on our community,” Algredo said in a recent letter. “Consequently, the Board will not support any new applications until these illegal operations are shut down.”

While Algredo’s statement reads as fairly definitive, the boards’ recommendations are advisory to state regulators, though they can still influence final policy decisions. The law that legalized cannabis in New York also mandates that applicants for cannabis licenses must notify the community board within the vicinity they plan to operate and appear before it prior to opening their businesses.

The conversation surrounding illicit cannabis shops in New York has been ongoing, though Gov. Kathy Hochul (D) and other lawmakers have consistently touted their efforts to mitigate theses problems.

In April, the governor unveiled new initiatives aimed to shut down illicit cannabis operations and protect the legal cannabis marketplace. The plan allows the Office of Cannabis Management and local municipalities new authority to take action against illicit shops. 

“Unlicensed dispensaries have littered New York neighborhoods, blatantly circumventing our laws and selling potentially dangerous products,” Hochul said in a statement. “Enough is enough. I promised to protect our communities and hard-working, legal cannabis licensees by expediting the closure of illicit storefronts. I’m proud to stand up and say we got it done.”

Nurturing the Legal Industry While Combating the Illicit One

Last month also marked the opening of the 100th adult-use store in the state. New York legalized adult-use cannabis on March 31, 2021. It also looks like that number should increase soon, as the New York State Cannabis Control Board (CCB) shared last month that it approved an additional 101 adult-use cannabis licenses with more than 400 total approved sites in 2024. 

Conversely, it’s estimated that New York City alone has about 2,000 illicit cannabis stores currently operating.

The state is still working to do what it can to fix the issues with the legal industry rollout. Lawmakers recently passed another resolution that gives the Office of Cannabis Management (OCM) the ability to issue provisional licenses, which the CCB hopes will speed up the licensing process. 

“This measure aims to provide provisional license holders with opportunities to begin operations swiftly while adhering to regulatory requirements, fostering a dynamic and competitive marketplace,” the CCB explained.

Still, it’s clear that closing illicit pot shops in the state will not be an easy task. Many illicit shops immediately reopened after raids and temporary shutdown orders under the prior rules, and it’s not yet clear how effective the newly announced laws to close illegal shops will be in practice.

Because of that, closing all illicit shops before allowing new ones to open, even in a single district, may be tougher in reality than in theory. Still, some lawmakers are standing by the need to close unlicensed shops before adding more licensed ones.

“We have 32 illegal cannabis shops. We are not going to entertain any applications for legal cannabis shops until the unlicensed stores are shut down,” CB 9 District Manager James McClelland told The Post.

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Georgia Governor Brian Kemp, a Republican, signed a legislative package on Tuesday, which his office described as “focused on supporting Georgia’s ever growing agricultural industry and improving security against foreign adversaries.”

The package, per the governor’s office, “tackles ownership of agricultural land or land near military installations by certain individuals acting as an agent of a foreign adversary, alleviates high input costs for our farmers and ranchers, protects children from misleading and dangerous marketing, and increases the penalty for livestock theft.”

“As valued members of our state’s number one industry, Georgia’s farming families deserve our enduring support as they face unprecedented challenges, including having to navigate disastrous federal energy policies, attempts by foreign adversaries to acquire farm land, and theft of property,” Kemp said in a statement. “We are tackling these challenges head on, and I want to thank our legislative partners for their work on these important issues.”

One of the measures, SB 494, “makes changes to the framework for hemp regulation in Georgia to allow the Georgia Department of Agriculture (GDA) to have greater oversight and enforcement power and adds labeling, packaging, and marketing requirements to protect children from misleading and dangerous marketing,” according to the governor’s office.

Specifically, the bill “establishes licensing requirements for growing hemp as well as manufacturing and selling low-THC hemp products,” and “also limits the possession and sale of hemp products to adults at least 21 years of age,” according to the Capitol Beat News Service.

The outlet described hemp farming in Georgia as “a fast-growing industry.”

“The vast majority of the jobs and the vast majority of the investment that have been created by these great private-sector companies … have been located outside the metro-Atlanta counties, creating opportunities for Georgians to succeed no matter what their zip code,” Kemp said at signing ceremony on Tuesday, as quoted by Capitol Beat News Service.

Like many other states, Georgia took the step to legalize hemp farming following the passage of the 2018 Farm Bill, which made hemp-derived products legal under federal law.

Recreational cannabis remains illegal in the Peach State, but lawmakers there legalized medical cannabis treatment in 2015 with the passage of Haleigh’s Hope Act, which permitted eligible patients access to low-THC cannabis oil.

In 2019, the Georgia General Assembly passed another measure that authorized “the Georgia Access to Medical Cannabis Commission to oversee the regulated licensing of limited, in-state cultivation, production, manufacturing, and sale of low-THC oil as well as dispensing to registered patients on the state’s Low-THC Oil Registry,” according to the state Access to Medical Cannabis Commission’s official website.

That bill was signed into law by Kemp.

The governor’s office said that although the package of bills signed into law on Tuesday “primarily focused on agriculture-related issues, it also addresses career burnout among healthcare professionals and goes after those who are distributing fentanyl-laced medications or controlled substances.”

SB 465, for example, “targets those involved in distributing fentanyl-laced medications to unknowing consumers by creating the offense of aggravated involuntary manslaughter for persons who manufacture or sell an apparent controlled substance that contains fentanyl and cause the fentanyl overdose death of another,” and “also establishes a criminal penalty for unregulated persons to possess a pill press, tableting machine, encapsulating machine, or other materials used to manufacture controlled or counterfeit substances.”

SB 420 “prohibits the ownership or acquisition of agricultural land or non-residential land within a radius of a military location by a nonresident alien acting as an agent of a government designated as a foreign adversary, entity domiciled/majorly owned in certain countries, or governments of countries designated as a foreign adversary by the U.S. Secretary of Commerce,” while SB 340 “adds diesel exhaust fluid (for agricultural uses only) to the Georgia Agricultural Tax Exemption (GATE) – alleviating high input costs for our farmers and ranchers.”

HB 455 “requires that professional programs established to address career fatigue and wellness in healthcare professionals are not obligated to report information on individual cases to the respective licensing boards unless they are determined to not be competent to continue to practice or are a danger to themselves or others,” while HB 1335 “adjusts staffing requirements in personal care homes, assisted living communities, and memory care centers by ensuring that no fewer than two on-site direct care staff are present on the premise at all times with at least one staff person on each floor. If the personal care home has implemented a medical alert system and each resident is provided a wearable device that connects to such system, then the staff person may move about the premises as necessary.”

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In an announcement last week, Governor Kathy Hochul announced that the state of New York reached a significant milestone: the grand opening of the state’s 100th Conditional Adult-Use Retail Dispensary (CAURD) brick-and-mortar store. 

Big Gas is located in the village of New Paltz, located near Poughkeepsie. The Office of Cannabis Management (OCM) and a handful of state leaders joined Big Gas owners, Kareem Haynesworth and Zymia Lewis for the grand opening of the store for public sales. “Big Gas is proud to be the first licensed cannabis dispensary in the City of New Paltz,” Big Gas Owners Zymia Lewis and Kareem Haynsworth said. “We are here with the support of the New York State Cannabis Investment Fund, who led us to this great location. This is beyond our wildest dreams.”

“We are pleased to be a host community in NYS’s Conditional Adult Use Retail Dispensary program,” said Village of New Paltz Mayor Tim Roger. “This initiative has allowed the state to 1) invest in a private fund to support individuals impacted by the inequitable enforcement of cannabis law and 2) protect public safety with NYS-sourced, regulated, and tested cannabis.”

Hochul applauded this historic milestone for New York’s cannabis industry.

“New York State continues to make progress on standing up a safe and legal cannabis industry for business owners, farmers and residents across the state,” Governor Hochul said. “Today marks a historic milestone in establishing a thriving and equitable industry in our state with the 100th brick-and-mortar store opening.”

New York officials licensed 110 adult-use cannabis retailers including storefronts and temporary delivery-only (TDO) locations across the state, with more anticipated to open soon. It’s a mix of CAURD licensees with storefronts, CAURD licensees providing delivery services, and adult-use dispensaries co-located with existing medical dispensaries. 

New York industry is taking off, reflected by the rapidly growing number of retailers and sales, with total sales exceeding $237 million, $77 million of which was generated in the first two and a half months of 2024. It’s all the signs of a thriving market. The rollout of New York’s cannabis program, however, was hammered by delays caused by lawsuits and the prevalence of illegal cannabis retailers. One such delay was a lawsuit led by Leafly that challenged New York’s ban on third party advertisers for cannabis businesses.

New York places emphasis on social equity measures to ensure that the state’s industry includes communities impacted the most by the criminalization of cannabis.

Despite setbacks, state leaders have been optimistic. Within its first year of operation, New York achieved and surpassed the Social and Economic Equity (SEE) goal laid out in the adult-use law with 60% of licenses given to social and economic equity applicants. Forty percent of social equity licenses are minority-owned businesses and 40% are women-owned businesses, respectively.

The governor’s announcement stated that this also almost doubled the percentage of majority minority-owned cannabis retailers nationwide. As of April 2024, 37% of New York’s adult-use retailers are majority minority-owned as only 19% are majority minority-owned nationwide. 

In addition, 11% of New York’s adult-use retailers were majority Black-owned, while nationally, that number is at just 2%. Approximately 50% of New York’s open dispensaries are minority- and/or women-owned businesses.

Office of Cannabis Management Executive Director Chris Alexander said, “We are incredibly proud of our licensees across New York State who have worked diligently to cross this threshold. Today’s celebration at Big Gas belongs not only to the team who opened their doors to business to eager customers today, but to every single licensee who is building this market from seed to sale. It echoes our commitment to catalyzing growth, fostering diversity, and championing equity within the cannabis sector. This milestone embodies our tireless endeavors to reshape the industry landscape and underscores our resolve to push the boundaries of progress. Supported by the New York Cannabis Social Equity Investment Fund, we take pride in our progress and pledge to persist in our pursuit of inclusivity and advancement of New York’s Cannabis Market.”

“We take great pride in being able to support individuals who have been affected by unjust enforcement of cannabis laws and help them thrive in this emerging industry,” said Social Equity Impact Ventures LLC General Principal of the Fund’s General Partner Lavetta Willis. “Access levels the playing field. We are thrilled for Zymia Lewis and Kareem Haynesworth and wish them great success. We express our heartfelt gratitude to Governor Hochul for leading the way and paving the path to a socially equitable sector that promotes inclusivity and equal opportunities for all.”

Hundreds more retail operations dot the state as licensed businesses compete with the black market.

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New York is continuing its slow roll toward expanding the number of cannabis businesses operating throughout the state. On April 12, the New York State Cannabis Control Board (CCB) approved 101 more adult-use cannabis licenses, and now the total number of licenses approved in 2024 so far sits at 403.

Gov. Kathy Hochul continues to be vocal about celebrating these milestones. “With the Cannabis Control Board’s issuance of 101 adult-use cannabis licenses, New York’s legal cannabis industry continues to make significant progress with over 400 licenses issued in 2024,” said Hochul. “Strengthening New York’s equitable cannabis industry and ensuring the hard-working small business owners operating in the legal market have the licenses to open are the best way to protect the integrity of sales in New York.”

The CCB recently approved a resolution that allowed for a diverse, ranging from varying microbusinesses, cultivators, processors, distributors, and retail dispensaries. “This resolution opens pathways for entrepreneurs and businesses to participate in the budding adult-use cannabis market, fostering economic growth and innovation,” the CCB wrote in a press release. This license round includes 25 cultivators, 25 dispensaries, 22 microbusinesses, 11 distributors, 10 provisional dispensaries, and eight processors.

Another resolution was passed, which gives the Office of Cannabis Management (OCM) the ability to issue provisional licenses, which the CCB hopes will speed up the licensing process. “This measure aims to provide provisional license holders with opportunities to begin operations swiftly while adhering to regulatory requirements, fostering a dynamic and competitive marketplace,” the CCB explained.

Now, provisional licenses can be approved by the CCB in regularly scheduled meetings, as well as the OCM, allowing license holders to lock down their retail locations until its time to receive final approval from the CCB. Provisional licenses are granted if the applicant provides all the necessary materials that they would need to apply for a full retail license, with the exception of not yet having a physical store location.

CCB board chair Tremaine Wright praised the passage of the new resolutions, which will help build up the cannabis industry in New York. “These resolutions represent a significant milestone in our efforts to establish a robust and responsible adult-use cannabis market,” Wright said. “By issuing this new batch of licenses, enhancing enforcement protocols, and introducing provisional licensing, we are creating a framework that prioritizes equity, transparency, and public safety.”

OCM executive director Chris Alexander called the move a “crucial step forward” for the 101 new licensees “who have the grit, skill, and ability to make sure our equitable market has the power to deliver the quality cannabis products New Yorkers expect to purchase when they walk into a legal dispensary.”

Earlier this month, a New York State Supreme Court ruling struck down the state’s current ban on third party advertisements. Initially, the ruling invalidated all of New York’s adult-use regulations but was amended to apply only to the state’s rules on marketing.

The lawsuit was led by Leafly Holdings, Stage One Dispensary, and a New York-based consumer. “It’s impossible to overstate the importance of providing consumers with choices, and educational information when making purchasing decisions,” Leafly said in a statement. “It is critically important that licensed retailers have equal access to important advertising and marketing tools to help them succeed in a competitive landscape.”

Individuals such as Sen. Jeremy Cooney (current chair of the Senate cannabis subcommittee) were not as happy about the outcome. “Today’s State Supreme Court decision was another setback in a series of blows New York’s adult-use cannabis market has faced since legalization, three years ago,” said Cooney. “While some changes to marketing regulations are needed, the decision by the Court to throw out all agency regulations will ultimately slow progress at a time when we need to more aggressively combat illicit shops to grow a stronger, more-equitable legal market.”

In late March, the CCB also addressed the needs of struggling cannabis farmers by waiving cultivator license fees for the next two years. Hochul called farmers the “backbone” of the state, and explained the need to support those family farms. “I have made it clear that New York State needs to issue more dispensary licenses and kickstart cannabis sales in New York, and this two-year promise to Adult-Use Conditional Cultivators will make sure these farmers can reap the benefits of this growing industry,” Hochul said.

Previously, cultivators needed to pay a fee when they applied to transition to a non-conditional license (including cultivation and microbusinesses). The fee can be as low as $4,500, and as high as $40,000, depending on the license tier size and canopy size of their grow.

New York’s adult-use cannabis industry was signed into law in March 2021 by former Gov. Andrew Cuomo. While Hochul took office in August 2021, adult-use cannabis sales did not begin until December 2022. In January 2024, Hochul commented on how the rollout of the adult-use cannabis industry was a “disaster,” and in need of review. As of March 18, Hochul announced that her administration would be assessing the current state of industry regulations.

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A New York state lawmaker is proposing legislation that would give regulators the authority to revoke the liquor, lottery and tobacco retailer licenses from stores that sell weed without a license. If passed, the legislation would go into effect immediately, giving officials new tools to combat the illicit pot shops that have proliferated since the state legalized adult-use cannabis in 2021.

Democratic Assemblyman John Zaccaro Jr., a Democratic legislator from the Bronx, is the lead sponsor of the legislation in the New York State Assembly. The measure (A09520) has already attracted 70 co-sponsors in the chamber after being introduced late last month. A companion bill in the Senate (S08847), sponsored by Democratic Senator Jamaal T. Bailey, has 10 co-sponsors.

The legislation “Provides for the revocation of licenses to sell cigarettes, tobacco products, alcohol and lottery tickets for the possession or sale of illicit cannabis in violation of the cannabis law,” according to the text of the measure. Businesses caught selling cannabis without a license would be subject to losing their licenses for one year on the first offense. A second offense within three years would subject the businesses to license revocation for three years and a third violation would result in the loss of cigarette, liquor and lottery retailer licenses for five years.

Thousands of Unlicensed Pot Shops in New York City

The legislation was introduced as the state, particularly New York City, continues to deal with thousands of retailers selling cannabis without a license. The office of New York Mayor Eric Adams recently reported that approximately 2,500 unlicensed weed retailers were operating in the city. Meanwhile, a slow rollout of licensed cannabis retailers has seen only about 40 regulated pot shops open in the city since the first began serving customers in the closing days of 2022.

Zaccaro said that the unlicensed shops are “choking” the regulated cannabis market as it struggles to get on its feet. Most of the retailers selling weed without a license are smoke shops and bodegas, businesses that would be severely impacted by the loss of the revenue streams provided by cigarettes, alcohol and lottery tickets.

“We need to be able to go back to our districts and be able to let our constituents and people know that we took this issue seriously,” Zaccaro told the New York Daily News on Wednesday The lawmaker added that he hopes the legislation will pass quickly, either as a stand-alone bill or as part ongoing negotiations for the state budget, which have already exceeded a deadline of April 1.

State and city regulators have already made several attempts to combat the proliferation of unlicensed weed shops with little lasting success. In the New York City Council, local lawmakers are supporting a plan to shut down unlicensed pot shops under a decades-old nuisance abatement law that allows the city to close some businesses, such as brothels. Despite having 26 sponsors on the 51-seat council, however, the plan has not had a hearing.

While Zaccaro’s bill to revoke cigarette, liquor and lottery licenses from shops that sell marijuana without a license gives state and local officials new tools to combat the illicit operators, putting them to use is another matter. Cannabis attorney Fatima Afia said that state regulators at the state Office of Cannabis Management (OCM) will have to commit significant resources to enforcement for the legislation to be effective.

“I imagine that it would require a lot of resources, a lot of time, a lot of energy — basically all the things that OCM has clearly not had for purposes of enforcement up until now,”  Afia said, adding that the slow rollout of regulated cannabis retailers is exacerbating the problem.

“The biggest supporter of the illicit shops is the fact that we don’t have enough licensed entities out there to compete with them,” said Afia.

Zaccaro’s bill has been referred to the Assembly Economic Development Committee, while the Senate version is under consideration by the chamber’s Budget and Revenue Committee.

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