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New York Will Not Issue Adult-Use Licenses Until 2023

New York Will Not Issue Adult-Use Licenses Until 2023

New York recreational cannabis licenses delayed until 2023

The head of New York’s Cannabis Control Board said last week she does not anticipate the state will begin issuing industry licenses until the spring of 2023 at the earliest.

The head of New York’s Cannabis Control Board said last week that she does not anticipate the state will begin issuing industry licenses until the spring of 2023 at the earliest, WXXI News reports. Tremaine Wright’s comments came during a cannabis conference at Comedy at the Carlson in Rochester.

“What we do control is getting (dispensaries) licensing and giving them all the tools so they can work within our systems. That’s what we are saying will be achieved in 18 months. Not that they’re open, not that they’ll be full-blown operations, because we don’t know that.” — Wright via WXXI

The state’s legalization law included a launch date of April 1, 2022, at the earliest and Gov. Kathy Hochul (D) only appointed members to the Cannabis Control Board in September. Hochul was not governor when lawmakers passed the broad legalization bill last March; she would replace Gov. Andrew Cuomo in August following his resignation over sexual misconduct allegations.

During the board’s meeting in late October, Wright declared the practice of “gifting” cannabis including it with the purchase of another, often overpriced product — illegal and that violations could be met with “severe financial penalties.”

While state regulators have been slow to get the cannabis licensing process underway, adult-use cannabis sales have already commenced under the jurisdiction of several New York tribes, including the St. Regis Mohawks.

bill has also been introduced that would allow licensed cannabis cultivators to start growing their crops prior to the launch of the formal program, creating provisional licenses that would allow businesses to operate if the Office of Cannabis Management doesn’t propagate program rules by January 1. That bill remains in the Senate Rules Committee.

Three in four California cannabis companies aren’t licensed

Three in four California cannabis companies aren’t licensed

Only 1 in 4 California cannabis companies have a permanent business license

State will give 17 cities and counties grants to help license cannabis businesses. But many say bigger problems remain.

Nearly four years after California started regulating its cannabis industry, three in four businesses still operate on provisional licenses.

As temporary license holders, 75% of the state’s cannabis industry lacks protections and privileges that come with holding full licenses — a situation that worries some in the business. Those temporary operators also haven’t passed extensive environmental reviews required of full licensing — a fact that concerns environmental groups.

Cannabis licensing is slow for a number of reasons, ranging from the sometimes dizzying complexity of California’s environmental rules to conflicting language between state and local cannabis laws to the high costs for permits and a shortage of government workers needed to process the paperwork.

The weed licensing glitch also isn’t new. For several years, state legislators have extended the permitting process so that thousands of businesses don’t become unlicensed overnight.

But now, California is pushing to change the situation. The state has set aside $100 million to help 17 cities and counties transition their cannabis businesses from temporary to full licensees. Los Angeles is eligible for $22.3 million of that money, while five other Southern California cities — Long Beach, San Diego, Commerce, Adelanto and Desert Hot Springs — are in the running for a combined $6.9 million. Applications are due by Nov. 15.

Eligible cities say they’ll use the money to hire staff and, in some cases, to offer direct support to businesses. They’re confident that over the next few months they can make a significant dent in the problem.

“I know it will help,” said Edgar Cisneros, city manager for Commerce, which has seven fully licensed cannabis businesses and 12 others waiting to get through the process.

“There is a real need for staff and also consultants…  to get these permits to permanent licensing at a much faster pace.”

Still, while business owners and others applaud the one-time state funding, they say it doesn’t go far enough. Many cities and counties remain left out of the applicant pool, and there is no statewide plan to ease the business hurdles that caused the backlog in the first place.

 

“No amount of money is going to change the significant amount of time it takes to come up to speed for local approval,” said Hilary Bricken, a cannabis industry attorney out of Los Angeles who said some businesses have failed during the multi-year wait to get licensed.

Nevada cannabis sales break $1 billion in 2021

Nevada cannabis sales break $1 billion in 2021

Nevada cannabis sales broke a record in 2021

Nevada retailers sold more than $1 billion in medical and recreational marijuana over a one-year period, state officials announced on Wednesday.

The Nevada Cannabis Compliance Board (CCB) and the Nevada Department of Taxation released the data, which shows $1,003,467,655 in taxable cannabis purchases in Fiscal Year 2021, which ran from July 1, 2020 to June 30, 2021.

By contrast, total marijuana sales for the prior 2020 fiscal year amounted to $685 million.

The bulk of the marijuana purchases ($791,100,017) came from Clark County, where Las Vegas is located. Another $135,326,790 of cannabis was sold in Washoe County, with Reno being the major city in that jurisdiction. The $77,040,859 remainder came from other counties.

Ten percent of tax revenue from recreational cannabis sales will support pubic education funding, as prescribed under a bill that Gov. Steve Sisolak (D) previously signed.

“This is what Nevadans expected since the legalization of recreational marijuana,” the governor said in a press release about the new sales data. “Education remains one of my top priorities, and I’m proud to see promised tax revenue from cannabis sales directly funding our students and classrooms.”

Sisolak also signed a bill in June to legalize marijuana consumption lounges in the state.

The new social use license types statewide and giving consumers this option—especially in the tourist-centric state—could further boost marijuana and other tax revenues.

The governor has also committed to promoting equity and justice in the state’s marijuana law. Last year, for example, he pardoned more than 15,000 people who were convicted for low-level cannabis possession.

That action was made possible under a resolution the governor introduced that was unanimously approved by the state’s Board of Pardons Commissioners.

Canopy Growth Pays Nearly $300 Million To Acquire Wana Edibles in the U.S.

Canopy Growth Pays Nearly $300 Million To Acquire Wana Edibles in the U.S.

canopy growth buys wana edibles brand

Canadian cannabis giant Canopy Growth is (kind of) acquiring Wana Brands, the #1 cannabis edibles brand in North America by market share – per Headset data.

According to information procured exclusively ahead of an official announcement, the deal features a similar structure to the one Canopy struck with Acreage Holdings a couple of years ago. Under the agreement, the Canadian operator will acquire the right to purchase Wana (comprised of Mountain High Products, Wana Wellness and The Cima Group) once THC becomes federally legal in the U.S.

The call option to acquire 100% of the membership interests in each Wana entity is being acquired by Canopy for upfront cash payment of $297.5 million.

When Canopy decides to move forward with the acquisition, it will pay 15% of the fair market value of the entities being acquired. Until the purchase is complete, thought Canopy Growth will have no economic, voting or controlling interest in Wana, which will continue to operate independently.

“Through the agreement with Wana, Canopy is adding another industry leading brand to power our rapid growth across the U.S. Wana has built a successful business using an asset-light licensing model, allowing them to scale across North America,” David Klein, CEO of Canopy Growth, said in an exclusive interview.

Breaking down the key strategic benefits of the acquisition, Klein explained Wana:

  • Strengthens Canopy Growth’s U.S. ecosystem.
  • Provides exposure to one of the fastest growing segments in both the U.S. and Canadian cannabis markets: edibles.
  • Would automatically make Canopy a leader in the edibles category.
  • Increases Canopy’s exposure to the U.S. market upon federal legalization.
  • Represents an opportunity to acquire a profitable and highly scalable business.
Billionaire-backed Denver Ordinance 300 would raise retail cannabis tax by 13%

Billionaire-backed Denver Ordinance 300 would raise retail cannabis tax by 13%

Denver Ordinance 300 would raise taxes on recreational cannabis.

An advocacy organization registered in Delaware and backed by a Bahamas-based billionaire Forbes calls “the world’s richest 29-year-old” is going head-to-head with the Denver cannabis industry — and the mayor — through a proposed city ordinance that would increase Denver’s recreational marijuana tax by 13%.

Initiated Ordinance 300, which will appear on the 2021 ballot, proposes that “Denver retail marijuana sales tax be increased by $7 million” through a 1.5% tariff to fund “pandemic research” at the University of Colorado Denver.

Should a statewide ballot initiative that will also be put before voters in 2021, Proposition 119, pass along with Ordinance 300, Denver cannabis consumers will be paying nearly 25% more for their weed within the next three years. Denver residents currently pay a total of 26.41% in taxes on recreational cannabis: 11.41% to the city and 15% to the state.

The move has Colorado cannabis industry insiders wondering why Colorado, why CU Denver and why their sector.

“Ordinance 300 taxes Denver cannabis consumers to fund, and I’m putting this in big old air quotes, ‘future pandemic research,'” Marijuana Industry Group Executive Director Truman Bradley told Denver Business Journal. “I literally cannot think of a cause that’s going to achieve more attention globally than [pandemic research]. It makes no sense to ask Denver cannabis consumers to foot the bill for that.”

MIG, along with industry advocacy organization Colorado Leads, primarily expressed concern about the impact on cannabis buyers who consume for medical purposes but may not have the means for a medical card — something that requires an often expensive annual physical exam and fees paid to the state — or simply don’t want to be on an official list.

“This measure — funded by a rich, out-of-town carpetbagger — taxes people’s pain relief to pay for a random pandemic preparation program that has no accountability, no oversight, no specific solutions and no connection to the marijuana industry,” Chuck Smith, Colorado Leads board president and CEO of Denver-based cannabis giant BellRock Brands, told DBJ. “If, as the proponents contend, this program is so beneficial, why aren’t all Denver industries asked to pay their fair share?”