According to recent reporting from the NJ Cannabis Regulatory Commission (“NJCRC”), sales of legalized, recreational adult use cannabis in NJ exceeded $116.5 Million from July to September of 2022. This Q3 revenue figure represents a 46% increase from sales receipts in Q2 of 2022 of $80 Million generated from April to June 2022, when 13 state dispensaries expanded to adult cannabis sales for the first time.
By way of background, New Jersey legalized the sale of recreational marijuana for those 21 and over in April 2021. Sales were initially confined to 12 licensed dispensaries, which had approximately $24 Million in sales through May 2021, or an average of $5 Million per week in a state with 9.3 Million residents. By comparison, adult recreational cannabis generated approximately $80 Million in total sales between April and June 30 per the Cannabis Authority or $6.7M per week. Continue reading “NJ Cannabis – 3Q 2022 Adult Use Sales Numbers Continue to Blaze”
Duane Morris Attorneys Named to Top 200 Cannabis Lawyers List
Duane Morris partners Paul P. Josephson, Michael D. Schwamm, Tracy Gallegos and Seth A. Goldberg have been named to Cannabis Law Report‘s Top 200 Cannabis Lawyers for 2022/23.
Cannabis Law Report compiled the list from the publication’s annual survey of clients and lawyers in the cannabis legal services sector “as well as our personal editorial decisions based on our reporting of the industry on a daily basis for the past six years.”
For more information, please visit the Top 200 Cannabis Lawyers website.
Meet Michael Schwamm, a Legal Wiz Specializing In All Things Cannabis
Michael D. Schwamm, Partner at Duane Morris, was a guest moderator at Benzinga’s Cannabis Capital Conference, on Apr 20, 2022.
Watch the full interview:
NY State Department of Taxation Creates New Webpage with Information on the Adult-use Cannabis Excise Tax.
New York State Department of Taxation and Finance has created a new webpage with information on the Adult-use cannabis products excise tax.
This cannabis excise tax will apply to both:
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- Distributors of adult-use cannabis products on sales of retailers, and
- Adult-use retailers on sales to retail customers.
If you plan to sell adult use cannabis you must register with the Department of Taxation (which is in the process of developing an online registration process and other guidance. More information is available on the NYS Department of Taxation website (https://www.tax.ny.gov/bus/auc/)
NY Adult
Key Cannabis Industry Projections and Trends from the New Frontier Data’s Recently Released 2022 U.S. Cannabis Report
Key Cannabis Industry Projections and Trends from the New Frontier Data’s Recently Released 2022 U.S. Cannabis Report
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- With a combined 148 million Americans living across those 19 adult-use states, and 248 million living across the 39 medical-use states, 44% of American adults now have access to legal adult use cannabis, and nearly three-quarters (74%) of the country now have access to legal medical cannabis in some form. Conversely, 89 million Americans (26% of the U.S. population) live in states where possession and use of cannabis remain illegal.
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- The US legal marijuana industry could surpass $72 billion by 2030 (assuming that an additional 18 states will legalize adult-use marijuana or comprehensive medical marijuana programs by then (with the current legal states reaching $57 billion by 2030), up from $32 billion this year.
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- Self-reported usage rates have risen sharply since 2012, and if this is sustained, the number of U.S. consumers will grow from 47 million in 2020 to 71 million by 2030.
- U.S. medical markets continue to expand, with the number of registered patients forecast to increase to 5.7 million in 2030 (1.6% of the adult population).
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- Assuming legalization in all 18 potential markets by 2030, 47% of total demand would be met by the legal cannabis purchases, up from 27% in 2021, indicating continued disruption of illicit markets.
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- Despite strong state-level momentum, the near-term prospects for federal reform are dim, but a limited measure, like cannabis banking reform, is possible following the 2022 mid-term elections.
New York Conditional Cultivation License – Advanced Preparation (What You Can Do Now To Be Ready)
As we noted is our blog post earlier this week, New York recently adopted legislation to allow licensed hemp farmers to grow and process cannabis for the adult use market with the aim to have product available once retail sales are permitted.
While the New York Office of Cannabis Management has yet to release the form of application (and any implementing regulations), that doesn’t mean that potential applicants should sit idly by and wait. In reviewing the legislation, its clear that there is plenty of work that can be done now. Continue reading “New York Conditional Cultivation License – Advanced Preparation (What You Can Do Now To Be Ready)”
NY Gov. Hochul signs conditional cannabis cultivation bill to speed-up recreational cultivation
New York Gov. Kathy Hochul signed new legislation on Tuesday that will allow hemp farmers in the state to apply for a conditional license to grow cannabis.
With this legislation, New York is creating a new Conditional Adult-use Cannabis Cultivator license, allowing hemp farmers to grow cannabis in the 2022 growing season to “position New York’s farmers to be the first to grow cannabis and jumpstart the safe, equitable and inclusive new industry we are building”. Conditionally licensed cannabis farmers must hit certain requirements under this law. Continue reading “NY Gov. Hochul signs conditional cannabis cultivation bill to speed-up recreational cultivation”
More Investors Eying Ways to Tap the Higher Returns of Cannabis Real Estate
Duane Morris partner Michael Schwamm was quoted in an article on WealthManagement.com.
The past few years have brought cannabis legalization to multiple states, giving real estate investors a new alternative asset class to put their money into. It looks like this trend is only going to intensify in the months ahead.
As we get further into 2022, all U.S. states without current medical cannabis legalization are now considering legislation or ballot initiatives to legalize it. In addition, some states where medical cannabis is already legal may take the next step this year to allow adult recreational use. […]
Twenty-one additional states may legalize cannabis use in some form this year, according to Michael Schwamm, a partner in the New York office of the law firm Duane Morris. […]
“Real estate investing (along with ancillary services) is often the entry point for many investors,” Schwamm adds. “As the industry continues to gain acceptance, I am seeing more and more traditional real estate investors taking a look at this market as they are able to get higher returns in the cannabis sector vs. other [real estate] markets.”
To read the full text of this article, please visit the WealthManagement.com website.
New York State Cannabis Update
By Michael Schwamm
More than 520 cities, towns and villages (1/3 of all municipalities in New York state) have opted out of allowing cannabis retailers and consumption lounges in their municipalities as of the December 31 deadline, according to new data released by the OCM. Of that number, 75 municipalities opted out of consumption lounges, but will still allow cannabis retailers. On the other hand, three towns are banning retailers, but will allow consumption lounges. Continue reading “New York State Cannabis Update”
Notes from New York Cannabis Control Board Meeting, October 2021
By Michael D. Schwamm and Joy Karugu
There were several outcomes of the inaugural New York Cannabis Control Board (CCB) Meeting held on October 5, 2021. The Meeting revealed that the CCB and the Office of Cannabis Management (OCM) will be increasing their staff and taking steps to extend the medical cannabis program and cannabinoid hemp licensing. Also during the Meeting, Jason Starr was announced and voted in as the Chief Equity Officer of the OCM. He will work with Executive Director Chris Alexander in building New York’s social equity program. Continue reading “Notes from New York Cannabis Control Board Meeting, October 2021”