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Navigating the Obstacles to Cannabis Legalization | The Edge ft Sen. Liz Krueger
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Why She Did It? New York State Sen. Liz Krueger on Spearheading Cannabis Reform

After seven years of consistent effort, cannabis is finally fully legal in New York. This is in no small part thanks to the tireless work of New York State Senator Liz Krueger of the 28th District, who has been a passionate advocate for cannabis legalization over the past several years. 

“It took us seven years to pass the bill here, but we learned a lot over the course of those seven years. We looked at what was working and not working in other states, and tried to get the best model possible built into our legislation,” Krueger says in regards to New York’s recent legalization through the Marijuana Regulation and Taxation Act (MRTA). 


Krueger sat down with The Bluntness’s Gregory Frye for an episode of The Edge to discuss her journey in spearheading cannabis reform in The Empire State.

The History of Krueger’s Cannabis Advocacy in New York

There are many reasons Krueger has backed cannabis legalization so passionately for the past several years, but social justice is certainly at the forefront. Throughout the U.S., Black Americans are 3.64 times more likely to be arrested for cannabis possession than white Americans, and 8 times more likely in New York before legalization.

“The motivation I had to get involved was looking at the statistics in New York from the last decade of who was getting thrown into the criminal justice system for the use of small quantities of cannabis, and it was horrifying to me. It was so radically skewed to young people who were Black and Brown being arrested for cannabis smoking, being moved through the criminal justice system,” Krueger says. 

“Even if they never went to jail on these issues, they ended up with records. They ended up being exposed to police precinct houses, arraignment courts...and we’re talking 90 percent of the people arrested being Black and Brown.”

These people quickly discovered that, for something as small as getting caught with a joint on their person, they could end up losing eligibility for all sorts of things: certain college grants and loans, living with their families in federally funded housing, and not being able to take civil service tests for some of the good-paying jobs that should have been available for their future.

Although Black and Brown teenagers have been arrested for cannabis at exceedingly higher rates than their white counterparts, research has revealed that people are prone to use cannabis at equal amounts regardless of race or gender. 

Once Krueger became aware of the depth of this issue, she immediately recognized it as something fundamentally wrong. She also recognized that prohibiting cannabis wasn’t decreasing use of the plant at all, and the New York government spending about half a billion dollars per year to bust people for low-level cannabis use was doing nothing but ruining lives.

“Maybe we didn’t know this 50 years ago, but we now know that marijuana has less [harmful] health effects on us than alcohol or tobacco, two products that aren’t outlawed in any state in the country, and yet we were approaching cannabis the same way we’d be approaching heroin or fentanyl,” Krueger says, noting that those substances, too, are worthy of conversations. “So, I decided I was going to attempt to draft a law that would make adult-use cannabis legal.”

How Krueger Helped Bring New York’s Medical Cannabis Program to Fruition

Krueger came to the conclusion that she would draft an adult-use cannabis bill before New York even had their medical cannabis program in place, and she had a plan. 

If she put in a bill for adult-use cannabis, no matter how many people called her crazy for it, it would force the governor to support medical cannabis in an attempt to kill the idea of adult-use ever happening in New York.

Three days later, Governor Cuomo signed New York’s first medical cannabis bill, although the program was incredibly restrictive and difficult for patients to access. 

The medical cannabis program in New York has since been redefined along with the new adult-use legislation, allowing for wider access and clear guidelines around hemp and CBD as well. 

For Krueger, the road to cannabis reform in New York was filled with plenty of hurdles and challenges.

She started off with conversations – as many as she could take on. “I talked to everyone. Whoever wanted to talk to me. I had elected officials who would say, ‘Look, I want to be with you, but my community is not there. Will you come and talk to them if I host a town hall meeting?’”

Krueger agreed to every town hall meeting that came her way, prepared for hostility, and while she was occasionally met with rancour, what she discovered was that the majority of the people out there just didn’t have the facts. 

She began coming prepared with credible information and statistics, ready to combat negative stigmas and misconceptions, the most prominent one being that cannabis is a “gateway drug.”

“People have this belief that it will lead to heroin and fentanyl and opioid addiction, and I would try to walk through the research that has shown marijuana is not a gateway drug. Marijuana could be addictive to some people who are prone to addiction, but it has a lower rate of ‘addiction’ than alcohol or tobacco, and it’s mostly psychological and can be gotten over fairly easily,” Krueger says. 

As Krueger continued her research, she also discovered that although cannabis was illegal, it was easier to obtain than alcohol or tobacco at the time – especially for anyone underage.

“That’s what I was told by police all over the state,” Krueger says. “That you need ID to get alcohol or tobacco, but for marijuana, you can use an app and order a delivery to wherever you are in the state of New York in like, twenty minutes. Nobody’s asking your age – nobody’s asking anything, because it’s an illegal process.”

Essentially, Krueger recognized that legalizing cannabis would eliminate the laundry list of risks that goes along with relying on an informal market. 

She also saw that legalization would help the state be more accountable in regards to who is buying and selling cannabis. 

“I would explain to people that if they think they’re worried about marijuana for their kids or other people in their lives, they need to understand that it’s here. It’s just not legal, and they’d be much better off with a legal system.”

The Damage Anti-Cannabis Laws Have Done To New York (And The U.S. As A Whole)

With a legal market, consumers will be able to know exactly what they’re purchasing and what its contents are with the assurance that it’s been medically tested and approved – without feeling like they’ve had to take a massive risk just to get a little weed. 

A legal market also may help get rid of the racist, anti-Mexican connotations that have gone hand in hand with “marijuana” since the 1920s, she says.

“There was a point in history where marijuana was being grown in Mexico and brought over to the U.S., and the U.S. was worried that there was too much economic activity on the Mexican side of the border and was advantaging them, not us,” Krueger says. “That was the 1920s. And yet to this day, you still hear people talking about the ‘evil Mexicans’ and their marijuana.”

Between economic manipulation and police officers having to meet their arrest quotas, cannabis use has been wrongfully targeted throughout the country (and other parts of the world) for decades, and New York hopes to contribute to a new standard that results in a more honest and fair criminal justice system overall. 

“I think cannabis prohibition has done harm to our police and corrections system, because you discourage people who really want to fight crime from wanting these jobs, because they’ll say, ‘I didn’t want to be a police officer so that I’d be busting teenagers for something that I don’t even think is wrong, so I’m not going to do this.’ So you discourage people from going into policing for the right reasons, and then you’ve created this system which just plays on itself over and over again,” Krueger says.

This flawed system not only harms the police officers who want to fight actual crime – it also harms the Black and Brown children who’ve been raised to rightfully distrust the system that wrongfully targets them. 

“It changes how parents teach their children, and then it changes the child’s relationship with the criminal justice system long before they even are making a decision about whether they’d ever think about using marijuana,” Krueger says. 

Krueger recalls an instance from about 25 years ago, when Rudy Giuliani was Mayor of New York City. Krueger was at a work lunch with mostly women when the following discussion came up: How old should your child be when you teach them how to not get killed by the police?

“I went, ‘What is this conversation?’ And the other women go, ‘Oh, you’re white, you guys don’t do this. If you were a Black or Brown parent, you know you have to teach your kids how not to end up getting arrested or shot by a police officer, when whatever is going on has absolutely nothing to do with your child. They’re just there,’” Krueger remembers.

“I go, ‘You actually have a lesson plan?’ ‘Yes. What do white people teach their kids?’ And I said, ‘If you’re in trouble, go look for a police officer.’”

Krueger never forgot that conversation. It was one of the first to make her realize what a real problem this is, and how commonly it has occurred throughout the nation.

New York’s Hope for the MRTA to Function As A Model For Other States

Over the years, Krueger has worked with advocates from drug policy and civil rights organizations to discuss the specific impact that anti-cannabis laws have had on communities of color. She understood their messaging to be quite clear: justice.

Cannabis legalization cannot stand on its own without bringing justice to the communities that have been wrongfully targeted. Legalization is the first step, but it must include efforts to undo some of the harms that befell the communities that had to pay the price for prohibition.

This effort must include investing money from legal cannabis sales back into those communities, sealing and/or expunging criminal records, and providing functional social equity programs for cannabis brands owned by people within these communities – all of which have been included in New York’s adult-use plan.

“I can guarantee you we got some things wrong, and like other states who have gone down this road, we will make adjustments and amendments as we see that something isn’t working correctly,” Krueger says. 

“It never bothers me to recognize that, okay, you tried to do something big? There’s a decent chance you don’t get it completely right the first time out. But that’s why democracy exists – to be dynamic and to change with how things are needed.”

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California’s Cannabis Tax Hike Is a Death Blow to the Legal Market
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Death Blow: CA's Cannabis Tax

The Golden State just made it harder for cannabis businesses to survive — again. Here’s why this 26% tax hike is a gift to the illicit market.

California, the birthplace of modern cannabis culture and the largest legal weed market in the world, just pushed its struggling legal industry even closer to collapse.

On July 1, 2025, the state’s cannabis excise tax will rise from 15% to 19% — a staggering 26% increase — marking the maximum rate allowed under current state law. This decision, mandated by a revenue trigger in a 2022 law signed by Governor Gavin Newsom, reflects the grim reality: California’s legal cannabis industry is in free fall.

And this tax hike? It’s gasoline on the fire.

A Vicious Cycle: Why Higher Taxes Make a Bad Situation Worse

The justification for this increase is baked into state legislation. If cannabis tax revenues drop — as they have — the state must raise rates. On paper, that might sound like good fiscal policy. In practice, it’s a death spiral.

Cannabis sales are down not because demand has disappeared, but because California’s legal businesses can’t compete with the thriving illicit market — a market that pays no taxes, follows no regulations, and continues to supply the majority of consumers, according to recent state-funded research.

Higher taxes will only widen the price gap between legal and illegal products, driving even more consumers underground and pushing more licensed operators out of business.

historical image of store window that says - "pay your taxes now, here!" California’s Cannabis Tax Hike Is a Death Blow to the Legal Market - The Bluntness Photo by The New York Public Library on Unsplash

Industry Voices: “The Legal Price Is Just Too Far Away”

Jerred Kiloh, president of the United Cannabis Business Association, put it bluntly:

“More businesses will close sooner as the legal price is just too far away from illegally obtained products. Less investment in starting or continuing cannabis operations will occur, and demand for cannabis licenses will decline exponentially.”

He’s not exaggerating. Thousands of cannabis businesses have already shuttered due to a toxic mix of overregulation, inconsistent enforcement, and sky-high operational costs. Operators who stuck it out through the tough years were holding on for reforms — not a tax hike.

Amy O’Gorman Jenkins of the California Cannabis Operators Association echoed the warning:

“We’re urging the Legislature and Administration to act quickly and freeze the tax at 15%. If we want a regulated market to survive in California, the time to intervene is now.”

A Growing Problem Across the U.S.

California is not alone in this mistake. States like New York and Massachusetts are also burdening cannabis with heavy taxes and rigid regulations — all while wondering why legal sales lag behind projections and the illicit market remains robust.

It’s a simple equation:
High taxes = higher prices = lower legal demand = more illicit activity = less tax revenue.

Rinse, repeat, collapse.

Opinion: Stop Treating Cannabis Like a Cash Cow

What we’re seeing isn’t just bad policy — it’s fundamentally dishonest governance. Leaders claim to support a thriving legal cannabis industry, yet enact policies that make that goal virtually impossible.

By continually using cannabis as a fiscal crutch — without fixing rescheduling, regulations, licensing delays, enforcement disparities, 280E, or equitable access to capital — states like California are ensuring that only the biggest, most well-funded players can survive. And even they’re struggling.

Let’s call it what it is: a slow-motion abandonment of legalization’s promise.

What’s Next?

There is a glimmer of hope. Assembly member Matt Haney introduced a bill to block the tax hike, which passed its first committee vote unanimously on April 24. But with just weeks left before the increase takes effect, the clock is ticking.

The question is: Will California finally listen to its operators, workers, and consumers? Or will it double down on a broken system — and let the world’s largest legal cannabis market become a cautionary tale?

Image of Pennsylvania State Capitol plaque in front of the PA State Capitol.
PA House Pushes Forward with State-Operated Marijuana Stores
Photo by Katherine McAdoo on Unsplash
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PA Proposes State Cannabis Stores

House Democrats fast-track controversial cannabis bill as state weighs unprecedented regulatory model — but GOP-controlled Senate remains a major hurdle.

Pennsylvania just lit a match under its long-simmering marijuana legalization debate — and this time, it could go up in smoke or spark something entirely new.

On Tuesday, in a razor-thin 102-101 vote, the Pennsylvania House of Representatives advanced House Bill 1200, a cannabis legalization proposal with a twist: sales would flow through state-run stores, mimicking the Commonwealth’s alcohol distribution system. If passed, Pennsylvania would become the first state in the U.S. to fully legalize marijuana and control its retail sales through a government-run operation.

The bill, championed by Democratic Reps. Rick Krajewski and Dan Frankel, rocketed through committee and floor votes in less than 72 hours — a pace that has Republicans crying foul and Democrats defending years of stakeholder engagement.

“This has been a transparent process,” said Frankel, who chairs the House Health Committee. “My door has been open for two years. We’ve held six hearings. The GOP knew this was coming.”

Still, Republicans aren’t buying it. “It’s being rammed through,” charged Rep. Charity Grimm Krupa, one of several GOP lawmakers voicing concerns over workplace safety, impaired driving, and the state’s potential overreach.

A Bold — and Controversial — Model

What makes HB 1200 a national outlier isn’t just its swift advancement — it’s the regulatory vision it puts forward.

Rather than opening the floodgates to private cannabis entrepreneurs, the bill would put the Pennsylvania Liquor Control Board (LCB) in charge of both licensing and operating cannabis stores. LCB would also oversee cultivation, processing, transportation, and consumption lounges — many of which could still be privately owned.

Adults 21 and over could legally purchase up to 42.5 grams of cannabis per day from LCB stores. Possession of small amounts beyond that would be decriminalized, while home growers could cultivate up to four plants (two mature, two immature) with a $100 permit.

Taxes would include a 12% excise rate on retail sales, with revenue feeding into a Cannabis Revenue Fund. That fund would support everything from expungement efforts and addiction services to minority business development and local court systems.

But it’s the state-store concept that’s drawing fire — not just from Republicans, but even some Democrats and the public.

A recent poll showed most Pennsylvanians prefer a private business model for cannabis sales. Rep. Abby Major (R), who is drafting an alternative bill alongside Democrat Emily Kinkead, stated bluntly: “There are zero votes for a state-store model in the Republican caucus.”

Progress or Power Play?

Despite the internal divisions, House Speaker Joanna McClinton (D) insists her party is ready to legalize. But with Republicans controlling the Senate, any cannabis bill — especially one this sweeping — will require bipartisan cooperation.

Even among legalization supporters, questions remain. Does a state-run retail model maximize equity and efficiency? Will it stifle entrepreneurship in favor of bureaucratic control? Or could it offer the kind of standardized safety and oversight that other states have struggled to achieve?

Meanwhile, advocates like Karen O’Keefe from the Marijuana Policy Project see a long-overdue opportunity: “It is past time for Pennsylvania to catch up with its neighbors and allow adults to relax with cannabis,” she told Marijuana Moment.

Cannabis Legalization Models: Pennsylvania vs. Neighboring States

Pennsylvania's proposed model, emphasizing state-run retail operations, distinguishes it from neighboring states that have adopted privatized systems. While this approach aims to centralize control and potentially streamline regulation, it faces criticism for potentially stifling private enterprise and raising concerns about federal compliance. In contrast, New York, New Jersey, and Maryland have embraced private-sector models, focusing on social equity and community reinvestment, though each faces unique challenges in implementation and market development.

FeaturePennsylvania (Proposed)New YorkNew JerseyMaryland
Retail ModelState-run stores operated by the Liquor Control BoardPrivately owned dispensaries with state-issued licensesPrivately owned dispensaries with state-issued licensesPrivately owned dispensaries with state-issued licenses
Possession LimitUp to 42.5 grams per dayUp to 3 ounces (approx. 85 grams)Up to 6 ounces (approx. 170 grams)Up to 1.5 ounces (approx. 42.5 grams)
Home CultivationUp to 2 mature and 2 immature plants with a $100 annual permitUp to 6 plants per householdNot permittedUp to 2 plants per household
THC LimitsFlower: max 25% THC; Edibles: 5mg per serving, 25mg totalNo specific THC limitsNo specific THC limitsNo specific THC limits
Taxation12% excise tax; additional 3% local tax for on-site consumption lounges13% combined state and local tax6.625% state sales tax; up to 2% local tax; additional excise fees9% state sales tax; additional local taxes permitted
Social Equity ProgramsLoan and grant programs for applicants with income below 200% of area median income and justice-impacted individualsPrioritization for individuals with past cannabis convictions and those from disproportionately impacted communitiesPrioritization for individuals from economically disadvantaged areas or with past cannabis convictions75% of licenses awarded to minority-owned businesses; strict advertising and packaging regulations to protect youth
Public ConsumptionProhibited; fines ranging from $100 to $200Prohibited in public placesProhibited in public placesProhibited in public places
Employment ProtectionsOff-the-job use protected; exceptions for federally contracted workers and explicit company prohibitionsOff-the-job use protected; exceptions for safety-sensitive positionsOff-the-job use protected; exceptions for safety-sensitive positionsOff-the-job use protected; exceptions for safety-sensitive positions
Implementation StatusPassed House; pending Senate approvalLegalized; implementation ongoing with challenges in licensing and enforcementLegalized; implementation ongoing with over 100 legal stores operatingLegalized; implementation ongoing with focus on minority-owned businesses and public health education

What’s Actually in the Bill?

Here are some of the key provisions of HB 1200:

  • Retail and Licensing: Cannabis would be sold exclusively through state-operated stores. The LCB would license 50 cultivators, processors, and transporters, plus micro-licensees.
  • Possession & Use: Adults could purchase up to 42.5 grams daily. Possession beyond that (up to 3x the limit) would be decriminalized.
  • THC Limits: Flower capped at 25% THC; edibles limited to 5mg per serving, 25mg total.
  • Social Equity: A new loan and grant program for equity applicants, defined by income, community impact, and justice system involvement.
  • Tax Revenue Allocation: 50% to community reinvestment, 10% to treatment, 5% to cannabis business development, 2.5% to minority biz support, 2% to court expungement programs.
  • Employment Protections: Off-the-clock cannabis use can’t be penalized (with some exceptions).
  • Home Grow: Limited to four plants with permit.
  • Public Consumption: Still banned; fines range from $100–$200.

The Road Ahead

While HB 1200's advancement is historic, it’s far from law. Senate Republicans remain cold on legalization altogether, let alone a state-controlled model. Senate Majority Leader Joe Pittman recently said there’s “no consensus” among the four legislative caucuses or with the governor’s office.

Still, Democratic Governor Josh Shapiro has repeatedly called for legalization — though he hasn’t endorsed the state-store concept. In March, he bluntly stated: “Pennsylvanians are driving to other states and paying their taxes.”

It’s a sentiment echoed across the political spectrum. Even some Republican lawmakers admit that prohibition has been a “disaster.” But whether they’re ready to get behind this particular vision remains to be seen.

With neighboring states like New York, New Jersey, and Maryland already enjoying adult-use cannabis markets, Pennsylvania risks being left behind — again. Whether it embraces a public-sector model or a more traditional privatized framework, one thing is clear: legalization is no longer a matter of “if,” but “how.”

This article includes reporting and original source material from Marijuana Moment and journalist Kyle Jaeger.

retail shelves stocked with legal cannabis products
The mix of in-state and out of state brands at a legal NY dispensary
The mix of in-state and out of state brands at a legal NY dispensary
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NY's Pot Industry: Wins, Woes, Next

Despite crossing $1 billion in sales, New York’s cannabis market reveals a fragile ecosystem where equity ambitions, high taxes, and regulatory drag threaten to blunt its full potential.

Two years into New York's adult-use cannabis rollout, the state's Office of Cannabis Management (OCM) has dropped its most comprehensive look yet at the market's performance, challenges, and opportunities. The 2024 OCM Market Report is packed with impressive numbers and lofty intentions, but peel back the layers and a more complicated story unfolds—one where equity goals face harsh economic headwinds, regulatory delays hamper progress, and a persistent illicit market looms large.

Here's what you need to know:

$1 Billion and Counting: A Sales Surge Worth Celebrating

As of the end of 2024, New York's legal adult-use cannabis market has generated more than $1.02 billion in retail sales, with $869 million of that coming in 2024 alone. The fourth quarter of 2024 shattered records with over $333 million in sales. By April 2025, the number of licensed dispensaries had climbed to 363.

That's no small feat for a state that only began regulated adult-use sales in December 2022. Consumer demand is clearly there—particularly in downstate regions like Manhattan, Queens, and Long Island, which accounted for over 58% of total sales.

But before we light a joint in celebration, let’s take a closer look at the fine print.

graph of NY Cannabis Retail Sales by Quarter 2024New York Cannabis Retail Sales by Quarter - 2024 - The Bluntness

Equity on Paper, But Economic Reality Bites

The MRTA's mandate that 50% of licenses go to social and economic equity (SEE) applicants has technically been met—54% of adult-use licenses were issued to SEE applicants as of December 2024. CAURD licensees, many of whom are justice-involved, make up 70% of all open dispensaries.

Still, the financial picture is grim for many of these operators. Over one-third of dispensaries are generating under $2 million annually—a threshold considered unsustainable in most regions due to high operating costs and steep taxes. Meanwhile, just 10 shops account for 26% of total sales.

2024 New York Market Share by % of Sales - The BluntnessThe Bluntness

Despite fee waivers and state support, the data suggest that equity licensees are struggling to survive, let alone thrive. The state's well-intentioned goals risk being undermined by market dynamics that favor capital-rich players, including the Registered Organizations (ROs) who are already outperforming in terms of sales per location.

Taxation Nation: A Competitive Disadvantage

New York's cannabis tax structure remains a sore spot. With a 13% retail excise tax layered on top of local sales tax and additional THC potency taxes (though now repealed), legal operators face margins that are razor-thin. That gives illicit operators—still prevalent in many parts of the state—a distinct price advantage.

Even with increased enforcement and over 1,500 illicit stores shut down, the black market continues to flourish, undermining legal businesses and depriving the state of much-needed revenue.

License Backlogs, Delays, and Confusion

Licensing delays and litigation have hampered the industry from day one. Although over 1,600 licenses were issued by the end of 2024, only a fraction of them are operational. Many applicants have waited months for updates, even after securing real estate and investing heavily.

OCM's new "single point of contact" model aims to streamline the process, but trust is still being rebuilt. The LOCAL Map tool is a step in the right direction, but many operators still face steep learning curves and a minefield of regulatory compliance.

Consumer Trends: Edibles, Vapes, and Bigger Brands

Flower still leads the way at 33% of sales, but consumer demand is shifting. Vaporizers (28%), edibles (14%), and concentrates (11%) are gaining traction. Price-conscious buyers are gravitating toward value options, particularly ounce-sized packages from ROs, which are cheaper on average than those from adult-use cultivators.

Brand loyalty is starting to emerge, with the top 5 brands accounting for 21% of total sales and the top 20 capturing nearly half. However, over 500 brands are currently in the market, and competition is fierce.

pie chart breaking down marketshare by product category in NY's legal cannabis marketShare of market by product category according to 2024 OCM Report - The Bluntness

Retail Disparity: A Tale of Two Markets

While sales are booming in Downstate regions, the Upstate market tells a different story. Despite having more open dispensaries, Upstate regions only accounted for 42% of reported sales in 2024. Dispensaries in less densely populated areas face longer ramps, higher per-store operating costs, and less customer traffic.

Moreover, while ROs and a handful of high-performing CAURD stores dominate sales, the bottom third of licensees are operating below breakeven. Many SEE licensees are still in limbo due to financing, construction, and municipal zoning delays, putting them at risk of falling behind before they ever open their doors.

What Needs to Happen Next?

The OCM recommends:

  • Continuing to prioritize and support SEE operators with real financial tools.
  • Streamlining the licensing process with more transparency and accountability.
  • Re-evaluating tax policies to make legal products competitive with the illicit market.
  • Encouraging brand diversity and innovation to capture more market share.
  • Strengthening data systems to improve market monitoring and consumer safety.

But recommendations alone won't fix structural issues. If New York wants to fulfill its promise of a socially equitable, thriving cannabis market, it must move faster, regulate smarter, and tax more fairly.

Because if not, the state's billion-dollar baby may never grow up.

Blunt Verdict: Progress, Yes. But Let’s Not Confuse Motion with Momentum.

Transparency in NY's Cannabis Market: The NYMCIA Controversy
Transparency in NY's Cannabis Market: The NYMCIA Controversy
Transparency in NY's Cannabis Market: The NYMCIA Controversy
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Selective Outrage Hurts NY Cannabis

New York’s cannabis market is at a crossroads. Selective enforcement and public manipulation threaten the very foundation equity was built on. Here’s an analysis of the NYMCIA accusations — and why the entire industry must demand better. Written by Jason Ambrosino, Founder and CEO of Veterans Holdings, a Disabled Veteran-Owned Cannabis Business in New York State.

Authored by: Veterans Holdings CEO Jason Ambrosino

Last week, the New York Medical Cannabis Industry Association (NYMCIA) issued a press release accusing licensed dispensaries of selling "out-of-state cannabis" and undermining the integrity of the legal market. Read the press release here.

Public trust matters. Regulatory compliance matters. But trust is not built through accusations based on incomplete science and selective outrage.

After reviewing the NYMCIA’s claims and the underlying lab report they referenced, it is clear that their conclusions are neither professionally sound nor fairly applied.

NYMCIA’s Real Membership and Interests

NYMCIA is not simply a voice for patients or small businesses. It is a lobbying association for some of the largest multi-state operators (MSOs) in the country, including Curaleaf, Acreage, and Columbia Care.

These same MSOs have:

  • Lobbied aggressively to accelerate their own entry into the adult-use market, cutting short the period intended to prioritize social equity operators.
  • Sued the state to avoid paying the $20 million participation fee designed to fund social equity initiatives.
  • Opposed efforts to allow home grow rights for patients and consumers.

Understanding who is behind NYMCIA’s messaging is critical to understanding the motivations behind their recent press release.

Flaws in the "Proof" Presented

The Lexachrom Analytical Laboratory report cited by NYMCIA relies primarily on isotope ratio mass spectrometry (IRMS) and soil residue analysis. While these scientific tools can provide information about environmental conditions, they cannot definitively determine where a cannabis plant was grown.

Several serious flaws are immediately clear:

  • Isotope markers like δ¹³C, δ¹⁵N, and δ²H are not location GPS markers. They can indicate broad environmental patterns but cannot pinpoint state or origin with certainty.
  • Soil inputs are not static. Commercially available soil brands like FoxFarm, produced in California, are widely sold across the United States. A New York cultivator using FoxFarm soil would logically display “California” markers without engaging in illegal interstate commerce.
  • The lab report itself admits only a "medium-to-high confidence" and recommends further confirmatory testing. Despite this, NYMCIA moved forward with public accusations.

Furthermore, no information about sample collection, chain of custody, or independent peer review has been provided. Without these elements, the claims should not have been treated as definitive.

Selective Enforcement and Curaleaf’s Aqueous Extraction

What makes this situation more troubling is the selective application of scrutiny.

One of NYMCIA’s most prominent members, Curaleaf, is currently producing extracts using an “aqueous extraction” method. While cold-water mechanical separation (ice water hash) is permitted under New York’s regulations, chemically assisted aqueous extraction — involving buffers, acids, or chemical filtrations — raises serious compliance questions.

The Office of Cannabis Management (OCM) has already set a precedent: When Jenny’s cannabis was found to be using an unapproved R134A extraction method, enforcement was swift and decisive, even though that method was later approved.

If enforcement is to be credible, it must be consistent. Curaleaf’s extraction practices should face the same level of regulatory review, not quiet exception.

Article contentOriginal Concept: Jason Ambrosino | Artwork generated via AI Illustration.


Protecting Incumbents vs. Building a Fair Market

By leveraging incomplete science and selectively targeting competitors, NYMCIA risks damaging the legitimacy of the legal cannabis market at a fragile time.

New York's cannabis industry deserves:

  • Transparent, evidence-based enforcement
  • Equal scrutiny for all operators, regardless of size or influence
  • A commitment to building a diverse and equitable marketplace

Weaponizing regulatory narratives to protect large incumbents weakens public trust and undermines the original goals of cannabis legalization.

Conclusion: New York Can Lead, If We Lead With Integrity.

Selective outrage will not build a sustainable market. Selective enforcement will not earn public trust. New York’s cannabis future must be built on transparency, fairness, and consistent regulatory standards.

We must hold ourselves, our trade associations, and our regulators to a higher standard.

The New York cannabis industry has an opportunity to set the national model — but only if we lead with integrity.

If you believe in a transparent, fair cannabis industry, now is the time to speak up. The future of New York's market depends on it.

This article was originally published on LinkedIn and published here with permission.

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Why Is Some Weed More Expensive Than Others? Understanding Cannabis Pricing
Giphy
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Unraveling Cannabis Pricing: Factors Behind the Cost of Weed

From Budget Buds to Premium Flower: Inside the Complex Economics of Cannabis Pricing and What It Means for Your Wallet.


Step inside a cannabis dispensary for the first time and the experience can be overwhelming. The meticulously labeled glass jars showcase dozens of strains with names like "Wedding Cake" and "Blue Dream," while refrigerated cases display concentrates, edibles, and tinctures at wildly different price points. Unlike the days when consumers were limited to whatever their neighborhood dealer offered, today's legal market presents a dazzling array of options that might leave newcomers with both wonder and sticker shock.

One thing customers notice immediately: not all cannabis is priced equally. A gram of one strain might cost an affordable $4 while another could command premium prices that seem puzzlingly high. This price disparity raises questions for both newcomers and experienced consumers alike. Is expensive weed worth it, or are you simply paying a "hype tax"?

The Economics Behind Cannabis Pricing

The cannabis industry operates under unique market conditions shaped by several interconnected factors:

Federal Regulations and Their Ripple Effects

Despite growing state-level legalization, the federal government's classification of marijuana as a controlled substance creates complications that directly impact pricing:

  • Banking restrictions force many businesses to operate cash-only, increasing security costs
  • Interstate commerce prohibition prevents efficient supply chain optimization
  • Tax code section 280E prevents cannabis businesses from deducting ordinary business expenses, significantly increasing their effective tax rates

A 2023 industry analysis estimated these federal constraints add 30-40% to operational costs compared to similar retail businesses. When combined with state-specific licensing fees that can reach into hundreds of thousands of dollars annually, these regulatory hurdles create substantial overhead costs that inevitably get passed to consumers.

Cultivation Methods Matter

The way cannabis is grown dramatically affects both its quality and price:

Indoor cultivation requires substantial investment in specialized equipment—lighting systems, climate control, ventilation, and precise nutrient delivery systems. These controlled environments allow for year-round growing with consistent results but at higher production costs.

Outdoor cultivation harnesses natural sunlight and soil, drastically reducing production costs. However, outdoor grows are subject to seasonal limitations, weather risks, and typically produce one or two harvests annually.

Greenhouse and mixed-light cultivation offers a middle ground, using natural sunlight supplemented with artificial lighting while providing some environmental controls.

John Kaye, co-founder of cannabis retailer Burb, explains that cultivation method directly impacts the final product: "The nose (does it smell pungent/pleasant?), color (look for vibrant green buds with orange/red hairs), feel (is it sticky, dense?), burn (how clean does it smoke?)—these qualities often correlate with production methods."

image of an indoor commercial green house growing cannabisWhen it comes to pricing, cultivation methods matter - The Bluntness Photo by Richard T on Unsplash

Quality Indicators and Their Price Impact

Several factors signal premium cannabis that commands higher prices:

  • Cannabinoid profile: While THC percentage remains a key pricing factor, the industry is increasingly recognizing the value of balanced cannabinoid profiles and diverse terpene content. Premium products often feature precise ratios of THC, CBD, CBG, and other cannabinoids targeted for specific effects.
  • Terpene preservation: These aromatic compounds not only create the plant's distinctive scents but significantly influence its effects through what scientists call the "entourage effect." Premium cultivation and processing methods preserve these delicate compounds.
  • Appearance: Properly cultivated, trimmed and cured cannabis displays vibrant colors, visible trichomes (the crystal-like structures containing cannabinoids), and proper moisture content without being too dry or too damp.
  • Proper curing: This meticulous post-harvest process can take 2-8 weeks as opposed to rushed methods that might take just days. Proper curing preserves cannabinoids and terpenes while removing chlorophyll and other compounds that create harsh smoke.
  • Clean cultivation: Premium products increasingly emphasize organic growing methods that avoid harsh pesticides, producing a cleaner final product. Lab testing verifies not just potency but the absence of contaminants, molds, or chemical residues.

The Brand Factor

Like other consumer goods, branding significantly influences cannabis pricing. An anonymous former dispensary inventory manager in Colorado (whom we'll call Keith) revealed: "Some growers get a name for themselves and raise prices accordingly. Customers are at times paying more for the grower's reputation than the objective quality of their product."

This aligns with broader retail principles. "It's all about the same things as prices in any other business: the profit they hope to gain based on what it costs them to have the product, and customer perceptions of what is worth that price," Keith explained.

Local Market Dynamics

Cannabis pricing also responds to local market conditions:

  • Market maturity: Newer legal markets typically have higher prices that gradually decline as more businesses enter the space and production capacity increases.
  • Taxation structure: State and local cannabis taxes vary dramatically, from modest to punitive, directly affecting final consumer prices.
  • Competition density: Areas with numerous dispensaries typically see more competitive pricing than those with limited retail options.

The Consumer Perspective

Cannabis consumers navigate these pricing factors differently based on their priorities and experience levels.

Some, like 38-year-old Colin, believe quality differences justify price premiums: "Those differently priced strains probably don't look the same or smell the same. There are probably large quality differences in the final product that account for the price difference."

Others approach the market more skeptically. Corey, a 34-year-old dance instructor from Chicago, suggests high prices sometimes exploit novice consumers: "The average person is exactly who dispensaries want coming through those doors because they can tell you weed will give you energy and you'll believe them for some reason."

Many consumers find themselves balancing budget with quality preferences. "The cheap stuff ruins my throat. The good stuff ruins my wallet," one consumer told us. "The fact that we can get it legally, though, is priceless."

Navigating Price vs. Value: A Consumer Guide

For consumers seeking to maximize value, industry experts recommend considering:

  1. Personal tolerance and needs: Higher-potency products might provide better value for experienced consumers despite higher upfront costs. If 10mg of THC produces your desired effect, a $40 product with 200mg total THC (20 doses) may offer better value than a $20 product with 50mg (5 doses).
  2. Consumption method efficiency: Different methods have vastly different bioavailability rates. Smoking and vaping typically deliver 10-35% of cannabinoids to your bloodstream, while edibles might deliver only 4-12% (but with longer-lasting effects). This efficiency directly affects the real cost per experience.
  3. Dispensary loyalty programs: Many retailers offer significant discounts (10-15%) for returning customers or first-time visitors. Taking advantage of these programs can substantially reduce costs without sacrificing quality.
  4. Targeted terpene profiles: Sometimes mid-priced products with specific terpene combinations (like myrcene for relaxation or limonene for mood elevation) offer precisely the effects a consumer wants without premium pricing.
  5. Transparency in testing: Reputable producers provide comprehensive lab results confirming not just potency but also terpene profiles and the absence of contaminants, pesticides, and heavy metals. This information helps ensure you're getting what you pay for.
  6. Harvest and package dates: Freshness significantly impacts quality, with properly stored cannabis maintaining optimal properties for about six months. Products approaching their one-year mark often sell at discount but may have diminished potency and terpene content.

Market Maturation: The New York Example

The evolution of cannabis pricing becomes clearer when examining maturing markets like New York. Recent data shows the average price for 3.5 grams of cannabis at New York dispensaries has fallen from $41.13 when legal sales launched in 2022 to $38.96 in early 2025. The price drops extend across product categories, with one gram of concentrate decreasing from $58.92 to $50.30 and one-gram vape products dropping from $64.89 to $55.35, according to a New York Office of Cannabis Management (OCM) analysis.

John Kagia, OCM's executive director of market policy, innovation, and analytics, attributes these shifts to increasing competition: "Retailers are adjusting their prices as part of their competitive strategy as more locations have opened. While it remains a little early to determine all the factors driving the retail price compression, it is common to see price compression as new markets mature and competition intensifies."

New York's cannabis ecosystem now features over 500 brands with approximately 370 retail locations, creating a competitive landscape that benefits consumers through lower prices. "Lower prices indicate a growing diversity of products available in the market," Kagia notes. "They increase affordability for consumers and enable the legal market to compete more effectively against the illicit market."

This market evolution has impacted dispensary revenues as well. While sales revenues per dispensary reached $599,000 in August 2024, by February 2025 that figure had dropped to $351,000 per store. Despite these per-location decreases, New York's overall cannabis market remains robust, with total sales reaching $1.46 billion since the launch of adult-use sales and on pace to hit $1.5 billion in 2025 alone.

The Future of Cannabis Pricing

As legal markets continue maturing nationwide, several trends are emerging:

  • Price normalization: Initial high prices in new markets typically decline as production scales up and competition increases, as demonstrated by New York's experience.
  • Quality stratification: Like wine or coffee markets, cannabis is developing distinct price tiers based on objective quality differences and production methods.
  • Consumer education: As buyers become more knowledgeable, pricing based purely on THC percentage or marketing hype becomes less effective.
  • Production efficiencies: Improved growing techniques and technology are helping producers deliver higher quality at lower cost.

A Market Finding Its Equilibrium

The legal cannabis industry continues evolving rapidly, with pricing structures that reflect its unique regulatory challenges, production complexities, and maturing consumer preferences. This evolution demonstrates classic economic principles at work, as markets move from novelty pricing toward equilibrium.

"We're witnessing what economists would call market normalization," says Dr. Beau Whitney, founder of Whitney Economics, a leading cannabis economic research firm. "The initial premium pricing we see in new markets reflects limited supply meeting pent-up demand, but with time, production capacity increases, competition intensifies, and prices tend to stabilize at levels that balance producer profitability with consumer affordability."

For shoppers navigating this complex landscape, understanding the factors behind cannabis pricing helps them make choices aligned with both their preferences and budgets. The education gap between newcomers and experienced consumers is narrowing as dispensary staff improve their ability to guide customers through the range of options.

Whether seeking budget-friendly options or premium craft cannabis, today's consumers benefit from unprecedented choice and transparency—a welcome change from the days when whatever the dealer had was the only option available. The industry's ongoing price evolution reflects not just changing consumer preferences and growing competition, but also cannabis's gradual transition from forbidden substance to mainstream consumer product.

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