New York regulators are advancing new regulations for the state’s cannabis showcase program, designed to allow licensed cannabis businesses to sell directly to consumers at temporary events resembling farmers markets. During a recent meeting, the Cannabis Control Board (CCB) unanimously approved a 23-page plan to expand the program, which will now enter a public comment phase.
The cannabis showcase program was initially introduced in 2023 to improve consumer access to legal cannabis while retail dispensaries were still being established. Following the sunset of the original program in January 2024, Governor Kathy Hochul signed legislation in December to revive and enhance it.
At the meeting, John Kagia, director of policy for the Office of Cannabis Management (OCM), highlighted the program’s success, noting that over 60 showcase events held between summer 2023 and the end of the year generated more than $10 million in revenue for participating businesses. “This approach has helped normalize cannabis within communities,” Kagia said.
New rules will permit adult-use cannabis retailers and registered organizations—medical marijuana businesses with certain adult-use selling rights—to apply for permits to showcase their products. Events can take place at public markets, pop-up locations, and existing cannabis business sites, although only licensed retailers can secure showcase permits.
Kagia responded to concerns about potential competition with brick-and-mortar stores by stating that the proposed regulations aim to balance access without undermining traditional retail. Regulators are open to public feedback on these proposals, emphasizing community involvement.
Each permit will be valid for a maximum of 14 consecutive days, with a limit of 45 days total per calendar year. If multiple retailers want to participate in the same showcase, they will need individual permits. Businesses can attend several events simultaneously but cannot hold more than two showcase permits at once.
The CCB’s approval means the proposed regulations will be available for public review, with a comment period expected to last between 45 and over 100 days, indicating that these events will not be operational for some time.
The showcase program was initially launched in response to delays in New York’s adult-use marijuana program, which has since seen growth. As of January, the state reported $1 billion in cannabis sales since the market’s inception. Currently, there are 1,726 licensed cannabis businesses in New York, with 52 new business licenses approved in the latest meeting.
In a related development, Hochul recently signed budget legislation removing a controversial provision allowing police to use the smell of marijuana as probable cause for drug tests. This change came after advocacy from a coalition of reform groups concerned about racial profiling and the historical impact of marijuana enforcement disparities in New York.
The OCM continues to emphasize the importance of combating the illicit market to support a healthy regulated industry. Recent enforcement initiatives, such as Operation Padlock in New York City, aimed at shutting down illegal cannabis storefronts, have reportedly led to a 105% increase in sales for licensed shops.
In addition to the farmers market program, New York regulators are also working on plans to allow cannabis sales in movie theaters, distinguishing the state’s offerings in the broader context of cannabis legislation. Furthermore, a new grant program will provide up to $30,000 to retail cannabis businesses to assist with startup costs.
As discussions around equity in the cannabis market continue, some businesses, particularly those under the CAURD program, have called for financial relief from high-cost loans. Advocates stress the need for support to ensure that small businesses can thrive alongside larger corporations in New York’s evolving cannabis landscape.
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