fbpx
First New York cannabis dispensaries to open on tribal land

First New York cannabis dispensaries to open on tribal land

New York cannabis dispensaries

The New York legal cannabis industry may be delayed by politicians and bureaucracy, but that isn’t stopping Native tribes from rolling out their own markets.

The Saint Regis Mohawk Tribe based in Akwesasne will be the first to launch a regulated cannabis market in New York state. Beginning April 15, several Tribal businesses will open their doors to sell cannabis flower, edibles and other cannabis products to consumers.

The Tribe is able to do so thanks to their Adult Use Cannabis Ordinance. The ordinance states that adults 21 years old or older can transport, possess, and use up to three ounces of cannabis and up to 24 grams of concentrated cannabis.

Once New York legalized cannabis officially in 2020, the option to legalize the plant on tribal lands became more enticing. Not beholden to state laws and regulations regarding the plant, the Tribe was free to establish their own regulatory framework to permit sales and possession.

The Saint Regis Mohawk Tribe is also the first in the country to regulate and license tribal member-owned businesses for cannabis.

According to the Tribe, licensing fees collected from legal cannabis operations will be used to keep community members employed and fund a wide range of community services. Additionally the funds will help support educational scholarships, public safety, road maintenance, elder assistance, health care, and community organizations.

Tribal Chief Michael Conners said he believes the system will benefit the community while providing a safe product for consumers.

“We are confident that the hard work of the tribally licensed cannabis business owners will result in loyal customers from beyond Akwesasne,” Conners said. “We know that it took a while, but we are confident that our system is designed to provide quality product, in a regulated system, with Compliance oversight and a qualified Board of Managers to see that all regulations are followed for the safety of our community and consumers.”

Montana recreational cannabis sales top $43 million in first quarter of 2022

Montana recreational cannabis sales top $43 million in first quarter of 2022

Montana recreational cannabis dispensary sales

In its first three months of operation, Montana recreational cannabis sales have surpassed $43 million, resulting in nearly $9 million in tax revenue for the state.

According to the state’s Department of Revenue, Montana recreational cannabis produced $43,537,110 in sales, compared to medical cannabis which generated $29,373,731 in sales during the same period.

Voters approved a ballot initiative to legalize Montana recreational cannabis in 2020, the same year three other states — Arizona, South Dakota and New Jersey — passed similar measures. However state officials wouldn’t approve regulations for a legal cannabis marketplace until October 2021.

This late action created a short deadline for the state’s Department of Revenue Cannabis Control Division to build out the framework for legal sales in Montana.

“The deadlines are aggressive,” Kristan Barbour, administrator of the Department of Revenue’s Cannabis Control Division, said at the time. “Really, the rules are our biggest challenge.”

“Our focus was really to be business-friendly and to try to work with the industry in a fashion that makes the rules adaptable to their current business structure and that they’ll be able to evolve into without a whole lot of pain,” Barbour added.

However despite the delays and tight deadlines, the Montana recreational cannabis market opened right on time, New Years Day 2022. On January 1 an estimated 380 dispensaries opened their doors in 29 counties across the state.

The state brought in an estimated $1.5 millions in adult-use sales in the opening weekend, a number that would snowball over the next couple months. While money isn’t the only reason a state like Montana would legalize cannabis, it is at the top of the list.

According to the Marijuana Policy Project, states have generated over $11 billion in tax revenue through legal cannabis. On average, a state with adult-use cannabis sales generated more than $3.7 billion in total revenue in 2021.

However another growing reason for multiple states legalizing cannabis is the failing War on Drugs. In 2018, 40% (yes, 40%) of all drug arrests in the US were for cannabis, typically possession. Think about the resources and dollars that go into arresting, processing, and housing all of these mostly non-violent offenders.

In March the Montana Supreme Court issued temporary rules for procedures that would allow those with past cannabis-related convictions to have them expunged. The state’s new cannabis law says “anyone convicted of an offense that would now be legal in the state can petition to have their conviction removed from their record, get a lesser sentence for it or reclassify it to a lesser offense,” according to local television station KPAX.

Just for comparison, Oklahoma, an equally red state with just a medical cannabis program that launched in 2019 brought in nearly $500 million in its first year of sales. Then the state nearly doubled that number in 2020.

Comparatively Montana recreational cannabis sales seem pretty miniscule. However it has only been three months. Should the trend continue, the state could easily see over $200 million in sales its first year.

Detroit to finally permit recreational cannabis sales

Detroit to finally permit recreational cannabis sales

Detroit cannabis sales to be allowed now.

Four years after legalization and following several months of hurdles, recreational cannabis will finally be available in Detroit soon.

Detroit’s City Council voted 8-1 on April 5 to allow the sale of adult-use cannabis to begin in the city. City Council president James Tate, a sponsor of the legislation, has said that the new ordinance will be equity-driven with a focus on assisting minority Detroiters to become business owners.

“This is providing the best opportunity possible for equity applicants and Legacy Detroiters to compete for these licenses,” Tate said recently at a public hearing on the ordinance. “For me, it’s important for us to strategically go in and identify how this industry can and should go in Detroit” instead of a more “shotgun” approach where whoever wants a license gets one.

This ordinance will have a major impact on the Michigan cannabis industry. Being the largest city in the state, Detroit has been missing out on millions in tax revenue that other cities have been collecting.

The state brought in nearly $250 million in tax revenue in 2021 without Detroit’s help. Over five million citizens live within the Detroit city limits, making up over half of the state’s entire population.

To say that recreational cannabis in Detroit will have an impact on the statewide industry would be a massive understatement.

According to Michael Elias, CEO of Michigan-based cannabis company Common Citizen, the passage of the adult-use ordinance is a “monumental win for Michigan’s largest city” and “will help create new job opportunities and contribute to the Motor City’s ongoing comeback.”

“This is a huge milestone for Detroiters and those in surrounding communities who have been seeking access to adult-use cannabis since voters approved recreational cannabis in 2018. At Common Citizen, we look forward to providing our safe, high-quality cannabis products to adult-use customers in addition to our patients at our Detroit location,” he added, in conversation with Benzinga.

New Mexico cannabis sales pass $4 Million in first weekend

New Mexico cannabis sales pass $4 Million in first weekend

New mexico cannabis sales brought in a lot of money

In its first weekend of adult-use recreational cannabis sales, New Mexico cannabis sales surpassed $4 million.

The brand new market broke $3 million on day one as dispensaries across the state opened their doors to customers for the first time. Over the next two days the industry would bring in a total of $4.5 million.

According to state officials, there have been 49,552 transactions for recreational cannabis as of 12 pm Sunday, totaling $3,092,712. During that same period, about $1,425,000 worth of medical cannabis was sold.

The first recreational cannabis transaction occurred at 12:01 a.m. in Las Cruces. Sales in the state’s largest city, Albuquerque, didn’t start till 10 a.m. By noon Friday, recreational sales had reached $476,000. About 70 percent of all cannabis sales Friday were for recreational use.

New Mexico cannabis sales for adult-use were signed into law by the state’s governor in April 2021. By December 2021 the state’s Cannabis Control Division began accepting applications with no limits on how many licenses would be given out.

Other states have taken similar approaches, like Oklahoma, which also didn’t put limits on licenses or plant counts for cultivators. While Oklahoma’s market is now oversaturated with cannabis products driving prices down, it is way too soon to say if New Mexico will face a similar issue.

Michigan opens first cannabis consumption lounge

Michigan opens first cannabis consumption lounge

Michigan cannabis consumption lounge

The first marijuana consumption lounge is set to open its doors later this month in Hazel Park.

Hotbox Social will start off with private events and then will open to the public later in the year.

It’s the first of its kind to be granted a state permit where users can recreationally light one up or smoke a bong.

But there’s a catch, you can’t bring in your own stash just yet.

“We’re able to accept deliveries from any retailer in the area. We don’t actually sell here,” CIO at Trucenta Nowfal Akash said. “Delivery drivers show up and maintain the transaction inside where it’s safe.”

Experts will also be on hand to teach those who are new users.

“The FDA has a certain recommendation about 5mg as an initial dose. We want to cut that in half and probably float around the 2-2.5mg range for a first-timer just to be safe,” Akash said.

Michigan is now the 7th state to allow these consumption lounges.

“We saw a need for a way for social consumption to occur in a responsible manner,” Michigan’s top Cannabis Regulator Andrew Brisbo said. “We can ensure the safety of the employees working in those types of establishments.”

There are a lot of regulations for these consumption lounges including an adequate ventilation system.

Interstate cannabis commerce bill introduced in California

Interstate cannabis commerce bill introduced in California

California interstate cannabis commerce bill introduced

California has always been at the forefront of cannabis legalization. As one of the first states to legalize medical and recreational cannabis, other states looked to California for the outline of legal cannabis.

But despite its progressive policies regarding cannabis, California has not been able to develop and maintain a strong legal cannabis industry. This is for a wide range of reasons, from strict and expansive regulations to exorbitant application and licensing fees. Not to mention the massive illicit market that still operates within the state, in part due to the current barriers to entry into the legal market.

Some would argue that the solution to California’s cannabis industry woes is to simplify the application process, lessen the cost of licensing and give cultivators and retail owners the resources they need to stay within regulation. However the state is taking a different approach to profiting off an industry with an oversupply of cannabis.

SB1326 has been introduced to approve interstate commercial transactions for cannabis products. This means that if passed, California would be able to import and export cannabis products from other legal cannabis states. For example a state that recently legalized cannabis but does not yet have enough supply to meet demand could import products from California to fill the gaps.

If this bill sounds familiar, it may be because Oregon passed something similar in 2019. However since they were the only state with a law allowing export of cannabis, and no states have a law allowing imports, the law is basically moot.

The interstate cannabis commerce bill wouldn’t just be restricted to recreational cannabis either. California also has one of the country’s oldest medical cannabis programs and would be able to provide medical cannabis to neighboring states as well.

Even with the largest illicit market of cannabis production in the country, California’s legal recreational market is still oversupplied. The hope with SB 1326 is that some of that supply can be sent to other states to make the industry more profitable for those participating legally.

Critics of the bill have shown concern however over wording that could remove the opt-out clause currently in place in the state.

Most states with legal cannabis programs will have opt-out clauses that permit municipalities to opt-out of legal cannabis business in their localities. Those criticizing SB 1326 believe that the new bill will overshadow the opt-out clause, but lawmakers believe that it will actually give the municipalities more options than the opt-out clause itself provides.

The interstate cannabis commerce bill also places restrictions on who can enter the new market if it passes.

“The bill would prohibit an entity with a commercial cannabis license issued under the laws of another state from engaging in commercial cannabis activity within the boundaries of this state without a state license, or within a local jurisdiction without a license, permit, or other authorization issued by the local jurisdiction,” the bill’s text reads.

This line should reassure smaller towns and local businesses that multi-state operators won’t be able to just storm in and take over. And at this time, officials in the cannabis industry want to focus on leveling out the supply in California before they begin accepting any imports.