Regional Cannabis News Update, November 2022 

Liberty State Park photo for CWCBExpo regional news article November 2022

Each month, Cannabis World Congress & Business Exposition (CWCBExpo) offers a convenient regional news round-up highlighting significant developments in the tri-state area and Pennsylvania. Get these updates in your inbox by subscribing to our email newsletter, or follow us on Instagram, LinkedIn, Facebook, or Twitter to get the most recent edition when it’s published.

Q4 got off to a strong start in New Jersey and New York, with significant progress in both states as each continues to establish and grow retail markets. Check out what you need to know in this roundup of the latest headlines from the tri-state region.

New York publishes initial cannabis retailer guidelines

The New York Office of Cannabis Management (OCM) released initial guidelines late last month for retail operators hoping to open their doors in the state. Click here to read the guidelines.

The guidelines dictate rules on operations, marketing, training, inventory tracking, and other essential areas of cannabis business operations. These rules are effective immediately.

Notably, the regulations reemphasize compliance with conditional adult use retail dispensary’s (CAURD) True Party of Interest clause. This requirement seeks to reinforce that business operators have ties to the state and bars stakeholders from involvement in other markets. This could have a cooling effect on multi-state operators (MSOs) looking to participate in New York’s adult-use market from its earliest stages.

New Jersey state legislature passes tax relief for cannabis businesses

In response to the challenges section 280E of the IRS tax code presents to state-legal cannabis businesses, the New Jersey legislature approved a bill that would allow these companies to claim some of those deductions on their state taxes. The legislation specifies that cannabis businesses that gross under $15 million per year would be eligible for these write-offs.

Currently, section 280E prevents entities that work with Schedule I or Schedule II substances from making significant tax write-offs that businesses in other industries enjoy. (Read our guide to 280E by clicking here.) These operators cannot deduct beyond cost of goods sold, leaving valuable tax write-offs unavailable for the whole industry. Relief on the state level can help make up for some of that tax burden.

As of the publication of this article, the bill has yet to come up for a vote in the New Jersey Senate.

More NJ operators get the green light

The New Jersey Cannabis Regulatory Commission (NJCRC) announced the approval of around 300 conditional licenses on Oct. 27th, adding more players to what’s expected to be one of the largest adult-use cannabis markets in the U.S. This brings the total number of awarded conditional licenses to 801. The licenses cover cultivation, manufacturing, and retail locations, and both standard and micro conditional licenses were awarded.

Conditional licenses are intended for those who wish to enter New Jersey’s cannabis industry but do not have real estate or experience running a cannabis retail business. Awardees must complete additional requirements before converting their conditional license to an annual license, which will permit the entity to operate.

Prepare for 2023 with the news you need to know

The cannabis industry landscape is ever-changing. Changes to regulations and policy can drastically affect your business and how you operate, so staying in the know is one of the most important – and responsible – actions you can take as a cannabusiness operator. Stay connected to CWCBExpo throughout the year for more timely updates and informative industry guides that help support continued business growth.

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