MJBizMag October 2020 - 55

their states could coordinate an adult-use
framework and approach.
Those interested in legalization and
working on a regional approach included
governors from Connecticut, New Jersey,
New York and Pennsylvania; Rhode Island
also was represented at the meeting.
Cuomo wanted to legalize a
commercial adult-use cannabis program
in New York via his spring 2020 budget
bill, but the coronavirus crisis forced him
to shelve those plans.
As of August, adult-use legalization
bills were in New York legislative
committees, but insiders said it was
unlikely that the bills would pass before
year-end.
Jeremy Unruh, senior vice president
of public and regulatory affairs for
Illinois-based PharmaCann, which has a
vertically integrated MMJ license in New
York, said New York would be in a better
position to evaluate a meaningful adultuse
strategy after all federal coronavirus
stimulus legislation had passed.
Federal lawmakers were still deadlocked
over an additional stimulus package
as this magazine went to press.
Unruh also said he didn't expect
New York to quickly resolve the issue of
how to encourage greater participation
by minority entrepreneurs in any new
recreational marijuana program.
" In my view, New York's next-best
opportunity to pick up where it left off
(in 2019) will be after the new year,
when the General Assembly convenes
to address the governor's budget bill, "
Unruh said.
Rob DiPisa, co-chair of the cannabis
law practice at Cole Schotz in New
Jersey, concurred, noting experts have
long said it would be too difficult to
legalize adult use in New York via a
stand-alone bill.
The coronavirus pandemic,
meanwhile, strengthens the case for
legalizing adult-use marijuana through
the state's budget bill, DiPisa said. Any
new program would generate additional
tax revenue for the state's coronavirusdepleted
coffers.
Garden State Dispensary is one of New Jersey's medical marijuana dispensaries expanding
cultivation capacity to prepare for an adult-use market. Courtesy Photo
RACE TO THE FINISH
But by legalizing recreational cannabis
through the budget next spring, " it's
highly unlikely that New York is going to
beat New Jersey, " DiPisa said. " The funny
thing is, no one is talking about that
(competition) much anymore. "
Stories were rampant in 2019 about
the heated race between New York and
New Jersey to be the first to legalize a
recreational marijuana program-or
risk losing out on cross-border and
tourism revenue.
It's possible the two states still
could be close in terms of a market
launch-perhaps in late 2021.
" But New York's Achilles' heel is that
it doesn't have the resources to meet the
demand, " DiPisa said, even if the state's
medical marijuana operators are allowed
first entry.
New York's highly restrictive medical
marijuana program, which is limited
to 10 MMJ licenses and bans flower,
serves only about 120,000 patients,
a fraction of the state's population of
approximately 20 million.
New Jersey had long been a restrictive
medical marijuana market as well, but
the state is poised to expand its program
from 12 vertically integrated licenses
to 36 MMJ permits once certain legal
challenges are resolved.
The new licenses to be awarded include
four additional vertically integrated
permits, five stand-alone cultivation
facilities and 15 dispensary licenses.
Meanwhile, the state's current MMJ
operators-including Garden State
Dispensary, New York-based multistate
operator Acreage Holdings and Massachusetts-based
MSO Curaleaf-are
expanding cultivation capacity to prepare
for an adult-use market.
For its part, Curaleaf also is
formulating plans to increase its
cultivation capacity in New York,
Executive Chair Boris Jordan said during
an earnings call in mid-August.
" We believe the potential legalization
of adult use in New Jersey could kick off a
wave of legalization in the Northeast, with
New York, Connecticut and Pennsylvania
likely to seriously consider adult-use
legalization, " Jordan said.
Let the dominos fall.
October 2020 | mjbizdaily.com 55
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MJBizMag October 2020

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