420 with CNW — Study Finds Cannabis Use Exceeds Cigarette Smoking in the US

New federal survey data shows that regular cannabis use exceeded cigarette smoking in the U.S. in 2025, marking a notable shift in substance use trends across the country.

According to the 2025 National Survey on Drug Use and Health, an estimated 43.8 million Americans aged 12 and older reported using cannabis on a regular basis last year. By comparison, 36.1 million people in the same age group said they regularly smoked cigarettes. The findings, released on July 28, highlight changing habits among U.S. consumers as cannabis becomes more widely accepted in many parts of the nation.

Young adults between the ages of 18 and 25 recorded the highest level of regular cannabis use, with about 8.4 million users in that age bracket. Cigarette smoking, however, remained far more common among adults aged 26 and older, with approximately 32.2 million people reported smoking.

Smoking remained the leading method of cannabis consumption, while edible products ranked second. Other commonly reported forms included vaping, concentrates, waxes, and dabs. Beyond traditional tobacco products, nicotine vaping continued to be widespread, with roughly 29.3 million Americans reporting regular use of e-cigarettes or similar devices.

The annual survey gathered responses from approximately 60,000 participants nationwide. It is carried out by the Substance Abuse and Mental Health Services Administration and has served as one of the federal government’s primary sources of information on substance use and mental health for decades.

Although the report does not identify a specific reason why cannabis use overtook cigarette smoking, the findings coincide with continued expansion of cannabis legalization throughout the U.S. At present, 41 states permit medical cannabis programs, while 24 states have approved recreational cannabis use. Washington, DC also allows both recreational and medical consumption.

Even with cannabis use on the rise, alcohol remains the country’s most commonly used substance. Survey results indicate that 129.1 million Americans aged 12 and older consumed alcohol in 2025. Among them, 44% reported binge drinking at least once a month.

Federal health officials define binge drinking differently for men and women. For men, it means consuming five or more alcoholic drinks on a single day within the previous 30 days. For women, the threshold is four or more drinks during the same period.

First launched in 1971, the National Survey on Drug Use and Health tracks self-reported information from the civilian, noninstitutionalized U.S. population aged 12 and older. In addition to measuring the use of tobacco, illegal drugs, prescription medications, alcohol, and nicotine products, the survey also examines substance use disorders, treatment access, recovery, depression, anxiety, mental health care, and other indicators of psychological well-being.

As more jurisdictions reform their drug laws to sanction marijuana sales, business opportunities are likely to expand for various enterprises like Innovative Industrial Properties Inc. (NYSE: IIPR) that don’t sell marijuana but instead provide services that marijuana companies need.

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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — Key Questions Employers Need to Ask as Marijuana Laws Evolve

As cannabis laws continue to change across the U.S., employers are facing new challenges when it comes to workplace drug policies. Growing acceptance of cannabis use, combined with increasing rates of positive drug tests, is prompting many organizations to reconsider long-standing hiring and safety practices.

Recent federal action has added another layer of complexity. Certain medical cannabis products have already been moved to Schedule III under federal law, while broader changes remain under review. If additional reforms move forward, businesses could see more requests for workplace accommodations as well as an increase in disability-related claims tied to cannabis use.

Against this changing legal landscape, employers are trying to strike a balance between maintaining safe workplaces and complying with evolving regulations. This is particularly important for industries where employee impairment could create significant safety risks.

Here are eight questions businesses should consider when reviewing or updating workplace policies:

Should pre-employment cannabis testing remain part of the hiring process?

Businesses may decide to remove cannabis from standard drug screening for some positions, depending on the nature of the job and the laws in the states where they operate. However, certain occupations, including federally regulated transportation roles, may still require THC testing.

Should safety-sensitive positions follow different rules?

While office-based employees may no longer face cannabis screening, workers in higher-risk roles may still be required to undergo testing. Any policy should be applied consistently and comply with applicable legal requirements.

How should reasonable suspicion be handled?

Organizations need a clear process for identifying signs that an employee may be impaired while working. Policies should explain how supervisors should respond, document concerns, and take appropriate action while remaining consistent with workplace safety standards and anti-discrimination laws.

Is there a defined disciplinary policy?

Companies should clearly outline the consequences for violating workplace rules related to marijuana use and possession while on company property or during working hours.

Are managers and supervisors properly trained?

Frontline leaders should understand how to recognize possible impairment, respond appropriately, document incidents accurately, and report concerns according to company procedures.

What happens after a positive cannabis test?

Employers should establish procedures for reviewing positive test results, allowing employees or applicants to challenge findings when appropriate. Businesses should also consider how they will address requests for reasonable accommodations from individuals legally using medical marijuana.

Will one company-wide policy be enough?

Organizations operating in multiple states must decide whether to implement a single policy that satisfies all jurisdictions or develop separate guidelines reflecting each state’s legal requirements.

Has legal guidance been obtained?

Before enforcing disciplinary measures or making employment decisions following a positive cannabis test, employers should consult qualified legal counsel. Professional legal review can help ensure workplace policies remain compliant as cannabis regulations continue to evolve.

For companies like Innovative Industrial Properties Inc. (NYSE: IIPR) that have marijuana businesses as clients, workplace marijuana policies could even be more important in preventing liability as employees go about their work.

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420 with CNW — Marijuana Rescheduling Hearing Features Only Prohibitionists, Triggering Concern

A forthcoming federal hearing on cannabis policy is facing criticism after the DEA approved participation exclusively from individuals and organizations that have voiced skepticism about marijuana legalization, leaving reform advocates and industry representatives out of the discussion.

The hearing, set for June 29 in Virginia, will focus on issues tied to the federal classification of marijuana. The proceedings could influence future decisions affecting cannabis businesses, taxation rules, banking access, and broader regulatory policy across the country.

Documents released by the DEA show that seven participants were selected to take part. Each of those approved has previously expressed concerns about legalization or the expansion of cannabis access. Groups representing consumers, patients, licensed marijuana operators, and legalization supporters were not granted a seat at the hearing.

The development has attracted attention in Michigan, where the legal cannabis market has become a major economic force. Marijuana sales in the state surpassed $3 billion last year, placing Michigan among the largest regulated cannabis markets in the nation.

Those approved to participate include Smart Approaches to Marijuana, the National Drug and Alcohol Screening Association, DUID Victim Voices, representatives from Nebraska, Louisiana, Idaho, and Indiana, the Tennessee Bureau of Investigation, along with pharmacist Dr. Phillip Drum and physician Dr. Kenneth Finn.

Critics point out that every participant selected has publicly raised concerns about legalization or expanded cannabis availability. Meanwhile, organizations that support reform were denied participation. Among them was the National Organization for the Reform of Marijuana Laws.

Following the decision, Paul Armentano, NORML’s Deputy Director, argued that cannabis users deserve representation in a process that could help determine the plant’s future legal status under federal law. He noted that millions of U.S. citizens use marijuana responsibly and should have an opportunity to be heard.

The DEA rejected requests from several reform groups after concluding they would not be negatively affected by moving marijuana to Schedule 3.

Although certain medical marijuana products and approved cannabis-based medications were moved to Schedule 3 earlier this year, major policy questions remain unresolved. Issues involving recreational cannabis, federal tax treatment, banking services, and long-term regulation continue to be debated.

The hearing is not expected to result in immediate policy amendments. Instead, it will contribute to an administrative record that may shape future federal action. As testimony begins and extends into July, many within the cannabis sector will be watching closely to determine whether the process is viewed as fair, balanced, and credible.

Businesses like Innovative Industrial Properties Inc. (NYSE: IIPR) that serve companies in the marijuana ecosystem will be hoping that the rescheduling hearing collects actionable views that accurately capture the realities on the ground.

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420 with CNW — Virginia Governor, Lawmakers Meet over Marijuana Sales Impasse

Virginia officials and lawmakers are moving closer to an agreement that could revive plans for legal recreational cannabis sales after Governor Abigail Spanberger vetoed legalization legislation earlier this year.

Recent discussions between the governor’s administration and legislative sponsors of the measure have focused on incorporating key provisions into the state budget, which lawmakers must approve before July 1. According to multiple people familiar with the talks, negotiations have made significant progress, and both sides appear interested in finding common ground.

Delegate Paul Krizek, who led the House effort on the proposal, described conversations with the governor’s office as productive. He noted that recent exchanges have resulted in substantial movement toward a possible compromise.

Spanberger’s office echoed that message, emphasizing the governor’s support for creating a regulated cannabis marketplace. A spokesperson said the administration remains committed to a system that prioritizes public safety, consumer protection, community interests, and effective oversight.

The legislation cleared the General Assembly in March but later encountered resistance from Spanberger, who sought several revisions. Among her proposed changes were a delayed launch date for retail sales, higher tax rates, and tougher penalties for certain marijuana-related offenses. Lawmakers declined to adopt those recommendations during a reconvened session, leading to the governor’s veto.

While details of a potential deal remain under negotiation, sources indicated that any final agreement would likely push back the start of legal sales from the date outlined in the original bill. However, the stricter criminal penalties previously proposed by the governor are not expected to remain in their earlier form.

Several issues still require resolution, including taxes, the number of retail licenses that would be issued, and limits on how much cannabis adults could legally possess.

Following the veto, legislative leaders openly discussed keeping the proposal alive through budget legislation. The topic was also addressed during a recent meeting of the Joint Commission to Oversee the Transition of the Commonwealth into a Cannabis Retail Market.

Spanberger has defended her decision by arguing that a slower rollout would allow Virginia to establish a stronger regulatory framework. She has repeatedly said that taking additional time is preferable to implementing a system too quickly.

Public opinion, however, appears to favor faster action. A recent poll found bipartisan support for the legislation and opposition to delaying legal sales. The governor has acknowledged public frustration with her decision, noting that criticism has come from supporters as well as personal acquaintances.

Virginia legalized possession of marijuana and home cultivation in 2021, but residents still lack a legal retail system for purchasing recreational cannabis. Supporters of legalization argue that regulation would replace the existing illicit market with licensed businesses subject to safety standards, age verification requirements, and government oversight.

Once a system is established to enable adult-use marijuana products to be sold within the state, opportunities are likely to open up not just in cannabis retail alone but also in other segments of the state economy linked to the industry, such as in real estate where companies like Innovative Industrial Properties Inc. (NYSE: IIPR) have found success serving clients in the marijuana space.

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420 with CNW — Missouri Regulators Prepare Final Marijuana License Lottery

Missouri cannabis regulators are preparing for a statewide outreach effort ahead of the final lottery that will distribute 77 microbusiness marijuana permits, with officials hoping recent policy changes will strengthen oversight and reduce problems that have troubled earlier rounds.

Throughout June, Missouri’s marijuana regulatory division chief equity officer Lesley Turek plans to host informational sessions in St. Louis, Kansas City, and Jefferson City along with five virtual events. The meetings are intended to guide prospective applicants through the process, explain eligibility standards and answer questions before submissions begin later this summer.

A key focus of the presentations will be new regulations scheduled to take effect at the end of May. State officials introduced the changes after numerous licenses were withdrawn because of ownership structures regulators determined violated constitutional requirements.

According to Turek, the revised rules are designed to return the initiative to its original purpose: helping individuals who might otherwise be excluded from the marijuana sector gain access to ownership opportunities.

Missouri’s microbusiness licensing system was created under the 2022 amendment that legalized recreational cannabis. The framework aimed to increase participation among disadvantaged and underrepresented residents by lowering barriers to entry in the regulated cannabis market.

Since the first lottery in 2023, however, the rollout has faced repeated setbacks. Investigations uncovered cases where outside investors allegedly recruited eligible applicants to submit paperwork, only to later enter agreements that reduced those applicants’ authority, financial benefits, and control over operations.

So far, Missouri has granted 106 microbusiness permits, but regulators have revoked 38, and one additional license was voluntarily surrendered.

State officials have said many questionable arrangements involved outside parties attempting to secure permits through individuals who met eligibility standards, rather than allowing qualified applicants to maintain genuine control of businesses.

Under the updated rules, regulators will complete detailed reviews before licenses are awarded instead of after recipients are selected. Officials believe this shift could reduce the number of future cancellations.

The regulations also clarify what it means for an eligible individual to “majority own and operate” a cannabis business. To qualify, applicants must hold more than half of both ownership interest and decision-making authority.

Another major change affects designated contacts. Going forward, the primary contact person must be either the applicant or an eligible majority owner. Regulators say this requirement emerged after communication problems during past reviews, when third parties sometimes blocked or delayed access to information.

Applicants will also be required to complete compliance training before applying and after receiving approval. The online course is intended to educate participants about regulations, business responsibilities, and warning signs of potentially exploitative arrangements.

To qualify for a microbusiness permit, applicants must meet one of several criteria, including low income, residence in economically distressed areas, or previous marijuana-related criminal records. A refundable $1,500 application fee is required.

The upcoming lottery will mark Missouri’s final round, bringing the state closer to the constitutional requirement of issuing at least 144 microbusiness licenses. Regulators hope earlier screening measures will prevent widespread revocations while preserving opportunities for legitimate small business owners.

As these microbusiness licenses are issued and the recipients launch their operations, other opportunities could be created within the marijuana industry ecosystem for services similar to what firms like Innovative Industrial Properties Inc. (NYSE: IIPR) offer.

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420 with CNW — Marijuana Reclassification Eases Some Industry Hurdles

Cannabis rescheduling in the U.S. could reshape scientific research and parts of the industry, though key questions remain about how the change will be carried out.

Under a final rule issued by the Office of the Attorney General, federally approved drug products containing marijuana would be placed in Schedule III of the CSA. This represents a significant change from the current Schedule I status, a category reserved for substances considered highly dangerous and lacking accepted medical use. Moving cannabis into Schedule III places it alongside drugs such as ketamine and codeine, signaling recognition of its therapeutic potential.

Researchers say the adjustment could ease some of the strict requirements that have long complicated cannabis studies. Daniele Piomelli, a professor of anatomy and neurobiology at the University of California, Irvine, noted that Schedule I classification comes with extensive security and documentation rules. Even small quantities used in experiments must be stored under tight controls, adding both cost and administrative burden.

With a Schedule III designation, those constraints would not disappear entirely, but they would likely be reduced. Scientists would still need approvals from the FDA and oversight from institutional review boards before conducting clinical trials. However, the process could become more manageable, potentially accelerating research efforts.

The policy change does not address recreational marijuana use, nor does it apply to synthetic cannabis products. States would continue to set their own laws, and many already allow cannabis use in some form. Currently, recreational use is legal in nearly half of U.S. states, while medical use is permitted in a larger majority.

Experts caution that the real impact will depend on how federal agencies implement the new classification. Piomelli noted that if the updated rules make it easier for researchers to access cannabis for study, it could lead to meaningful scientific progress. Still, he expressed uncertainty about whether regulators will adopt a research-friendly approach.

The DEA is expected to hold a hearing on June 29 to gather input on broader reclassification. Officials say the goal is to evaluate evidence and expert opinions on whether marijuana should formally move to Schedule III.

Supporters argue that the change could expand medical knowledge and improve patient care. Acting AG Todd Blanche recently said the move would encourage more precise and thorough studies into cannabis safety and effectiveness, helping doctors make better-informed decisions.

Beyond research, the reclassification could have economic consequences. Cannabis businesses have long faced financial hurdles because federal law treats marijuana as illegal. This has limited access to banking services and imposed strict tax rules. Under current regulations, many cannabis companies cannot claim standard deductions, resulting in high effective tax rates.

A Schedule III designation could change that. Riana Durrett, who leads the Cannabis Policy Institute at the University of Nevada, said the move may open the door to banking, interstate commerce, and even international trade for medical marijuana products. It could also ease tax burdens, allowing businesses to operate under conditions more similar to other industries.

Even so, both Piomelli and Durrett stress that reclassification is not the same as full legalization. They describe it as one step in a gradual process that has been unfolding for decades. While opinions on cannabis remain divided, there is growing acknowledgment of its medical applications and broader societal role.

For now, the pace of change appears steady but slow, with further developments likely to depend on regulatory decisions in the months ahead. Those anticipated changes will not only be important to marijuana firms but also to ancillary entities like Innovative Industrial Properties Inc. (NYSE: IIPR).

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420 with CNW — Bipartisan Congressional Bill to Let States Have Their Own Hemp THC Rules

A new bipartisan effort in Congress is offering states a way to sidestep an upcoming federal crackdown on hemp-derived THC products, instead of forcing an immediate nationwide ban. The proposal, introduced last week, would let individual states maintain their existing regulatory systems rather than adopt a stricter federal standard scheduled to begin in November.

The measure is backed by Democratic Senator Amy Klobuchar and Republican Senator Rand Paul. While the full legislative text has yet to be released, the intent is to create a patchwork approach similar to how marijuana laws currently operate across the country.

This move reflects growing hesitation in Washington over the sweeping hemp policy approved last fall. Under that law, any hemp product containing at least 0.4 mg of THC would no longer qualify as legal hemp. Industry representatives argue that this threshold would effectively eliminate a large share of products now sold nationwide.

In anticipation of the federal change, several states have already begun tightening their own rules. Many did so despite pushback from industry participants who warn that the shift threatens a sector valued at more than $28 billion.

The Senate Agriculture Committee is expected to review the proposal as part of broader discussions tied to the long-delayed update of 2018 Farm Bill.

Paul has publicly urged colleagues to incorporate the opt-out provision into the larger farm legislation. In a recent video, he described hemp as a valuable agricultural product and pointed to Kentucky’s own approach, where lawmakers passed rules treating certain hemp-based beverages like alcohol. The framework mirrors how some states regulate recreational or medical cannabis despite federal prohibition.

He argued that state authority should take precedence in these cases, suggesting that local governments are better positioned to manage the industry.

Still, the proposal may face resistance, particularly in the House. Representative Glenn Thompson, who leads the House Agriculture Committee, has indicated that oversight of hemp-derived cannabinoids may fall outside his panel’s scope.

Despite the uncertainty, industry leaders have welcomed the effort. Thomas Winstanley of Edibles.com praised Paul’s role in advancing policies that reflect both the original intent of federal farm legislation and current market conditions. He said the bill could help preserve consumer access, support domestic producers, and establish clearer safety standards.

Questions also remain about how the new federal limits would interact with a separate initiative introduced by Trump. That program allows certain Medicare participants to receive reimbursement for CBD-based treatments, raising potential conflicts if those products no longer meet the federal definition of hemp.

The cannabis industry, including other ecosystem players like Innovative Industrial Properties Inc. (NYSE: IIPR), will be following how these discussions proceed and the policy decisions that emerge on the issue of hemp THC regulation.

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420 with CNW — Fresh Lawsuit Filed Challenging Michigan’s New Cannabis Tax

Michigan’s legal cannabis sector has launched a second legal challenge against a recently implemented 24% wholesale tax. According to the lawsuit, the levy, which took effect at the start of the year, pushes the overall tax burden on marijuana beyond limits established in the state constitution.

Rose Tantraphol, speaking on behalf of the Michigan Cannabis Industry Association, said the system effectively layers one tax on top of another. She explained that the wholesale levy operates similarly to a sales tax, meaning it is applied before the standard 6% retail tax. As a result, customers end up paying tax on top of an already taxed product, a practice commonly referred to as tax pyramiding.

The contested levy also comes in addition to a separate 10% excise duty already applied to cannabis purchases. Industry representatives argue that the combined effect is beginning to weigh on sales figures.

Data released by the state Cannabis Regulatory Board suggests a noticeable decline in revenue following the tax’s introduction. Sales dropped from about $269 million in December last year to roughly $226 million in January, a decrease of nearly $43 million. While February figures showed a slight recovery to $234 million, the association maintains that the trend raises concerns about long-term stability.

Tantraphol warned that the financial pressure could threaten jobs across the sector. She noted that the cannabis industry currently supports around 47,000 positions statewide, adding that continued strain from taxation could put that workforce at risk.

The wholesale tax was approved last year as part of a broader plan to address infrastructure funding. However, a separate lawsuit, still under review by the state Court of Claims, challenges the legitimacy of the tax on procedural grounds.

That case argues the legislation should have required a supermajority vote in the state legislature because it effectively alters a voter-approved law. Michigan voters legalized recreational marijuana in 2018, and any changes to that initiative typically require approval from three-quarters of both legislative chambers.

State officials maintain that the tax does not modify the original legalization framework. Instead, they argue it is part of a separate funding mechanism for road improvements, and therefore does not trigger the higher voting threshold.

Meanwhile, State Representative Joe Aragona said that if the courts strike down the measure, funding for road projects would not disappear but would need to be sourced from other areas of the budget. He added that the governor’s administration remains confident in its legal position as the case moves forward.

Complaints about excessive taxes on legal marijuana in the U.S. aren’t new. Similar complaints have been raised in many jurisdictions where ancillary firms like Innovative Industrial Properties Inc. (NYSE: IIPR) have cannabis businesses as clients.

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420 with CNW — Federal Agencies Retain Employee Marijuana Testing Guidelines

The U.S. Health and Human Services Department (HHS) announced that federal workplace drug testing programs will continue screening for cannabis metabolites, maintaining the current approach.

The announcement comes despite a December 2025 executive order by President Trump which called for cannabis to be reclassified from Schedule I to Schedule III under the Controlled Substances Act as quickly as federal procedures allow.

Earlier last year, the agency made a narrower adjustment by updating the terminology used in reporting cannabis test results to align with modern scientific standards. However, marijuana’s legal status at the federal level remains unchanged. It is still categorized as a Schedule I substance, a classification reserved for drugs considered to have a high risk of misuse and no accepted medical use.

In recent years, many states have approved measures allowing recreational or medical cannabis use. Ballot initiatives in both 2020 and 2022 expanded access further, and at least 24 states now permit recreational use.

This patchwork of state laws has created compliance challenges. Legal protections for marijuana users differ widely depending on location, making it harder for employers to apply consistent policies across jurisdictions.

For example, Colorado allows recreational cannabis use but still gives employers the authority to act on drug test results when making employment decisions. In contrast, workers in Illinois are protected from disciplinary action if they use legal products such as cannabis outside of work hours and away from the workplace.

Some employers have also adjusted their internal policies in response to shifting attitudes and labor market pressures. In 2021, Amazon announced that it would stop including cannabis in its standard drug screenings for most positions, except those subject to Department of Transportation regulations.

Even as laws evolve, many experts advise human resources teams to maintain clear workplace drug policies. Most state laws that permit cannabis use still allow companies to ban on-the-job consumption and impairment during work hours.

If federal authorities eventually reclassify cannabis, employer obligations could shift, particularly in areas such as disability accommodations under the Americans with Disabilities Act. Legal analysts note, however, that even a move to Schedule III would not remove cannabis from the list of controlled substances.

Until any federal reclassification takes effect, employers, particularly those in regulated industries, are expected to follow existing rules. For others, state-level protections may apply, but no nationwide standard currently requires accommodation for marijuana use.

As things stand, firms like Innovative Industrial Properties Inc. (NYSE: IIPR) have to use their discretion to design appropriate workplace policies guiding their employees on what is or isn’t acceptable with regard to marijuana use.

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420 with CNW — New York Regulators Say Marijuana Sales Could Surpass California’s

New York’s legal marijuana industry has started 2026 with strong momentum, following a year of rapid growth in 2025. State officials say sales during the opening weeks of the year suggest the market could reach new highs before the year ends.

During a recent meeting of the state Cannabis Control Board, regulators reported that licensed cannabis retailers generated nearly $250 million in revenue in just the first three weeks of February. According to the state’s Office of Cannabis Management, that early performance places New York on track to reach roughly $2.6 billion in total cannabis sales by the close of 2026.

For several years, New York’s adult-use marijuana program was widely viewed as a market with enormous potential but limited early results. The rollout faced repeated obstacles, including lawsuits that challenged licensing decisions and delays tied to regulatory procedures. Those setbacks slowed the launch of retail stores and constrained early supply.

Momentum began to build in 2025. Updated data from the OCM show that licensed cannabis businesses in the state recorded $1.7 billion in sales last year. That total represents a dramatic jump from 2023, the first full year of legal sales in New York.

John Kagia, OCM’s acting executive director, predicted that the market could expand even further if current growth patterns continue. Under that scenario, yearly cannabis sales in the state could climb to nearly $5 billion by 2028. Such growth would place the state at the top of the national cannabis market by revenue.

During the same meeting, the Board approved 20 additional business licenses, further expanding the regulated marketplace.

New York now has 2,161 licensed marijuana businesses. The breakdown includes 245 cultivators, 232 licensed distributors, and 532 processors. There are also 321 microbusinesses permitted to cultivate and sell cannabis directly to consumers and 506 licenses for retail dispensaries.

Data from the OCM shows that 56% of all marijuana business licenses have gone to applicants who qualify under the state’s social equity programs. That total includes 325 retail operators.

Even with strong sales and an expanding retail network, regulators say the industry still faces supply concerns. Some observers argue that current cultivation levels may not be enough to meet rising demand.

During the board meeting, officials acknowledged those concerns and pledged to review cultivation license applications that were submitted in late 2023 but have not yet been finalized.

This good news coming from New York State after a stuttering start to its legal marijuana market is likely to be welcomed by industry actors across the board, such as Innovative Industrial Properties Inc. (NYSE: IIPR).

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