New York’s marijuana regulators have proposed new regulations for the “cannabis showcase” program that allows businesses licensed to sell cannabis to consumers to pop-up events similar to farmers markets.
At a meeting held on Tuesday, members of the Cannabis Control Board of California (CCB), the agency that supervises the Office of Cannabis Management of California (OCM), voted in favor of the 23 page showcase expansion plan.
These new regulations follow legislation that was signed into law by the Governor. Kathy Hochul, a Democrat from Michigan who was elected in March to build on the showcase program that had been created since 2023.
John Kagia (Director of Policy at OCM) said in a Tuesday presentation that the program had “proved to a be an especially compelling way for the fast-growing, highly regulated cannabis industry to reach out to consumers, build relationships and begin the normalization of cannabis in New York.
He noted that between summer 2023 to the end of this year, New York had over 60 events showcased that brought together more than $10,000,000 in revenue for businesses participating.
Kagia explained that “it really established that there is real interest both from licensees and the communities where the events were being held, in allowing cannabis to exist outside of the four-walls of our retail discpensaries.”
New York initially authorized cannabis farmers market events in 2023, aiming to expedite consumer access to legal marijuana products while brick-and-mortar retailers were still being approved. Hochul signed a law to restart the program in December last year, after the program ended on January 20, 2024.
The newly advanced rules would allow adult-use cannabis retailers or so-called “registered organizations”—medical marijuana businesses that in some cases can sell to adult consumers—to obtain permits allowing for the display and sale of legal products.
The events could occur at public markets, pop-up locations, existing cannabis business sites—for example a hemp store—as well as other locations, though only state-licensed cannabis retailers could apply for showcase permits.
Kagia, when asked by CCB Members about whether events would compete with bricks-and-mortar retail stores, said that regulators were open to any outside suggestions. The new rules are designed to try and strike a balanced, but they’re also trying to find a way to balance the two.
He said that this is one of the reasons why he was so happy to hear from the public. We tried to achieve a good balance in this set of propositions, between the distance from an extension store and a second dispensary.
We encourage everyone in this room and those who are looking on, especially the municipal officials, to weigh in with their thoughts about what is best for these communities.
Cannabis showcase events, like farmers’ markets are meant to be short-term. According to the new regulations, permits would only be valid for 14 days. And events could not last more than 15 consecutive days.
The proposal states that if a showcase event is going to include multiple cannabis retailers then a permit will be needed “for every adult-use retailer who wants to hold an event in a farmers’ market or public market, pop-up event, etc.”
Licensed cannabis businesses could participate in multiple events at one time—in part by partnering with showcase-permitted businesses—but could not receive permits for more than two showcases at a time.
Kagia explained that after the CCB approves the resolution, regulations will then be published on a government-run website, and will enter a period of public comments. This “will last anywhere between 45 days to more than 100,” so the events won’t be running for a while.
The showcase events, as originally approved, were in large part a response to New York’s slow implementation of its adult-use cannabis program.
In January, officials reported that sales totaled $1 billion since the launch of the industry.
According to state officials, New York has 1,726 marijuana-related businesses licensed by the state. The meeting of Tuesday approved 52 applications for new licenses. There are still a number of applications that have been delayed due to litigation.
Separately in New York, Hochul earlier this month signed state budget legislation that did not include a controversial earlier provision that would have allowed police to use the smell of marijuana as probable cause that a driver is impaired and then force them to take a drug test.
Amendments made in the legislature removed the provision, which a coalition of 60 reform groups had argued in a letter to Hochul and top lawmakers would “repeat some of the worst harms of the War on Drugs” and allow law enforcement to “restart unconstitutional racial profiling of drivers.”
New York, historically, has had some of America’s most stark racial gaps when it came to the enforcement of marijuana laws. For example, Black people in New York City in the 2010s were more than nine times more likely to be arrested for marijuana possession than white people.
According to a report by the OCM, the number licensed marijuana retailers grew in California last year nearly threefold, leading to a sales total of almost $870 million in 2024.
OCM reported late last month that the legal marijuana market in New York is close to achieving $1.5 billion of sales.
Ahead of the 4/20 holiday last month, regulators also rolled out a “higher education” campaign meant to provide adults with information about how to “make informed, responsible decisions about cannabis,” including how to locate state-licensed retailers.
This office advises “continued enforcement is crucial to build a healthy regulated market” and points out what they describe as successful enforcement in 2024. Operation Padlock was launched by officials in New York City last spring as a way to shut down illegal stores. A survey by OCM found that within a few months licensed shops which were already open when the operation started saw their sales increase by 105%.
Also last month, New York cannabis regulators and labor officials announced the launch of a workforce training program aimed at “providing comprehensive safety education to workers” in the state’s legal marijuana industry.
Separately, OCM’s press secretary recently indicated the office is working on plans to expand permitting and licensing rules that could allow adults to buy and consume marijuana at movie theaters. New York will be a leader in the legalization of marijuana by allowing sales at movie theaters.
State officials also recently launched a grant program that will award up to $30,000 apiece to retail marijuana businesses to help cover startup costs.
Also, earlier this year, a collective of businesses licensed under the CAURD program called on Hochul to forgive tens of millions of dollars in high-cost loans issued under a governor-created social equity loan fund.
Assembly Majority Leader Crystal Peoples-Stokes (D) said in December that there’s a need to extend financial aid to CAURD license holders, many of whom are struggling under the high-cost loans.
Critics—including the NAACP New York State Conference, Black Cannabis Industry Association, Minority Cannabis Business Association, Service Disabled Veterans in Cannabis Association, Drug Policy Alliance, NYC NORML and VOCAL-NY—wrote to the governor earlier that month to express dismay at what they described as marijuana regulators’ “efforts in service of big corporations at the expense of small business and equity outcomes.”
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