Vicente LLP Mid-Atlantic Update: March 2024
Apr 4, 2024
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Each month Vicente LLP highlights notable cannabis information from New York, New Jersey, Connecticut and Maryland.
New York
Regulatory Meetings
The Cannabis Control Board (CCB) met on March 22, 2024. You can watch the meeting replay online or read the transcript. Meeting highlights include:
- Approval to waive conversion fees for adult-use conditional cultivator licensees with a demonstrated need for financial assistance
- Issuance of 114 adult-use cannabis licenses
- Issuance of 17 cannabis laboratory licenses
- Adoption of enforcement regulations
- One RO renewal and two RO changes of locations
- Executive Director’s Report, which included the announcement that transition applications for adult-use conditional cultivators and adult-use conditional processors are open now and will close on May 3
You can follow OCM and the CCB’s day-to-day activities on their Instagram account @nys_cannabis.
Program Updates
The revised medical cannabis regulations were filed in the register on March 27. Revision highlights include harmonizing ownership regulations and packaging and labeling for medical and adult-use operators.
The CCB approved the filing of amendments to the adult-use regulations and changes to home cultivation regulations. Highlights include technical changes to social and economic equity provisions, clarification on the definition of “exclusive use buildings”, and the removal of references to pesticides. Additionally, these changes would authorize personal cultivation (with restrictions) and would authorize the sale of immature medical and adult-use cannabis plants by retailers, microbusinesses, ROs, RONDs, and RODs. These amendments were filed in the register on March 20 and public comments will be accepted until May 20, 2024.
Licensing Updates
Conversion applications for adult-use conditional cultivators and adult-use conditional processors are open now and will close on May 3.
The Office of Cannabis Management (OCM) will re-open applications for Processor Type 3 Brand licenses.
On March 22, 2024, 114 adult-use licenses were issued.
As of March 27, 2024, 90 adult-use retail dispensaries have commenced operations.
New Jersey
Regulatory Meetings
The Cannabis Regulatory Commission (CRC) met on March 13, 2024. You can watch the recording on YouTube and see the slides here. Meeting highlights included:
- Medicinal and recreational sales for 2023 exceeded $800 million.
- Price per gram remains high, at $12.22/g at adult use stores and $10.48/g at medicinal dispensaries.
- Reminder that extension requests must be filed at least 15 days before the applicable deadline using this form.
- There are currently 61 adult-use dispensaries open across the state and 12 medical-only dispensaries.
Policy Updates
The proposed regulations governing the operation of cannabis consumption areas have been approved for publication in the state register.
CRC has issued edibles guidance for manufacturers and retailers which expands the types of permitted edibles until recent proposed amendments to the Personal Use Regulations are adopted.
CRC Legal is working on guidelines to implement A4151, the bill that Governor Murphy signed into law on September 25, 2023. This law allows certain investors to own up to 35% of up to 7 diversely owned adult-use retail stores in exchange for the provision of "significant financial or technical assistance.” This represents a departure from current CRC regulations limiting ownership to one retail license.
Connecticut
Regulatory Meetings
The Social Equity Council (SEC) met on March 5, 2024. The meeting minutes can be found here. Meeting highlights include:
- The approval of 4 Equity Joint Ventures
- The rejection of 2 Equity Joint Ventures
- An Executive Director’s Report that included:
- An update on the Canna-Business Revolving Loan Fund – Social Equity owners with multiple licenses are now allowed to apply for a maximum of two loans (one loan per license)
- A Community Reinvestment Plan update – the investment account has $34.6 million and the SEC voted to use $22 million for violence prevention and $12.6 million for community collaboration.
The SEC will meet on April 2, 2024 at 10 am. The agenda and link to view have not been posted but will be made available on this webpage. Other committee meetings are also advertised on that site.
Program Updates
In February, the adult-use market recorded over $15 million in sales, and the medical marijuana market recorded over $8 million in sales.
Maryland
Program Updates
The Maryland Cannabis Administration (MCA) conducted the Social Equity License Lottery on March 14, 2024. 174 applicants were selected across the micro and standard grower, processor, and dispensary categories. The lottery for dispensary applicants in Calvert and Talbot counties have been delayed due to litigation. The MCA has not yet released additional information on the timing for the selection process in these jurisdictions.
For selected applicants, the work of securing a location and obtaining a conditional and final license has just begun! Please tune into our webinar on April 4th to learn more about how to effectively advance through the licensing process, raise capital, and commence operations compliantly and in a cost-effective manner.
For applicants who were not selected, additional licensing opportunities are on the horizon. First, to the extent that any of the applicants selected in the lottery do not receive a Conditional License, then an additional applicant will be selected from the same lottery pool.
In addition, applicants who are not selected can ask the MCA to retain their application for up to a year, during which time the next licensing round will (likely) take place. The MCA will waive the application fee if applicants elect to apply for the same license type (i.e. Standard or Micro). Any application retained by the Administration that meets the specifications and requirements of a subsequent licensing round within the one-year retention period shall be automatically entered into the lottery if the applicant has properly amended the application or provided information requested by MCA.
Additional information about future licensing rounds is likely to become available in May of 2024. During the next licensing round, all micro-licenses will be reserved for Social Equity Applicants. It has not yet been determined whether the Standard Licenses available will be limited to Social Equity applicants. The availability of Standard Licenses to non-social equity applicants will depend on the outcome of a disparity study.
Regulatory Meetings
When scheduled, public meetings will be noticed here.
Questions about cannabis in New York, New Jersey, Maryland and/or Connecticut? We're here to help with corporate law, market analysis, selecting a location, community outreach, licensing, and more. Please feel free to reach out to our Tri-state team.