NECANN’s Role in Shaping the East Coast Cannabis Industry

Marc Shepard from NECANN discussed the East Coast’s developing cannabis market compared to the West Coast’s with The Outlaw. He highlighted varying state regulations and the excitement surrounding emerging markets like Maryland. He advises aspiring entrepreneurs to prepare thoroughly for cannabis conferences and points to the potential of ancillary cannabis businesses. 

• ABCA and MPD issued closure orders to Classic Tobacco and Hotbox in D.C.
• We have a full breakdown of the synthetic cannabis bust in Southeast D.C. 
• The next ABC Board Meeting is Apr. 23 at 10:30 A.M., watch, agenda.
• Last week’s disposition is here. Three new locations have been added to the members only license tracking map. 

Maryland cannabis grower fined $65k, placed on probation following employee theft and regulatory violations

The company was found to be in violation of multiple regulations, including inaccurate record-keeping and inventory control, improper inventory maintenance, and failure to secure cannabis products. An employee was also found to be diverting cannabis products for unauthorized distribution. Additionally, the company failed to maintain accurate cleaning logs and deviated from their own standard operating procedures. As a result of the investigation, the company must now provide monthly inventory reports to the MCA and submit a corrective and preventative action plan.

Maryland Lawmakers Approve Cannabis Sales Tax Hike

Maryland’s legislature passed a bill to gradually increase the state’s cannabis sales tax rate, which could rise from 9% to 12%. Supporters argue the hike is needed to fund equity and public health programs. The tax hike aims to address Maryland’s $3 billion structural deficit.

• Maryland’s Office of Social Equity to host technical assistance open houses for cannabis licensees April 16 & 30
• Maryland to Automatically Shield Criminal Records Associated with Low-Level Cannabis Convictions
• Maryland to will automatically shield criminal records associated with low-level cannabis convictions

Virginia Enacts New Employment Rules on Background Checks and Cannabis

Virginia’s updated employment laws for 2025 restrict the use of AI in hiring, impose tighter controls on background checks, and maintain the current legal landscape where recreational cannabis users have no employment protections.ICYMI: Women Grow continues to elevate and unite women in the cannabis industry and more D.C. padlocks

East Coast Roundup

New York state regulators are investigating reports of out-of-state cannabis products being sold as New York-grown, a practice known as “product inversion,” which could undermine legal market integrity.

A group of around 100 residents in Long Island, NY, protested against a plan to open a cannabis dispensary in their town, citing concerns about the potential impact on youth.

Massachusetts state legislators are weighing eight bills that would raise the cap on how many dispensaries one entity can own, a move that could reshape competition in the market.

• Springfield dispensary owner pushes for state reform on business bankruptcy procedure.

Connecticut Department of Consumer Protection (DCP) appointed Lila McKinley, as the director of cannabis, overseeing the new cannabis division.

• Connecticut smoke shop busted again for illegal sale of cannabis products, including cannabis cigarettes and THC products.

 A key state lawmaker saidPennsylvania is “substantially closer” to legalizing cannabis, with a vote expected as soon as this month.

Culture & More 

An independent investigation found that nearly half of tested cannabis products contained pesticide residues, mold, or heavy metals—raising serious concerns about California’s regulatory gaps.

A cannabis market analyst revised U.S. legal cannabis sales forecasts down by $21 billion, citing a triple threat of high taxes, market oversaturation, and competition from hemp-derived cannabinoids. 

4/20 events are held across the US, featuring a mix of cannabis products, music, art, and activities that celebrate alternative lifestyles, sustainability, and community.

A new national survey shows growing concern over impaired driving, with some respondents saying it has pushed them toward growing cannabis at home instead of buying from dispensaries.

Around the Country 

The Hawaii Senate passed a bill to expand access to medical cannabis by letting healthcare professionals recommend it for any condition they deem appropriate.​

The Florida Senate passed a bill to restrict intoxicating hemp-derived cannabinoids like delta-8 THC, just months after Governor Ron DeSantis vetoed a similar measure. The legislation now heads to the House for consideration.

In Colorado, burglars broke into a Police trailer used to store confiscated cannabis and made off with 600 pounds of cannabis awaiting destruction. The theft has sparked questions about police security protocols and the chain of custody for seized cannabis.

Portland cannabis shop owners say rising break-ins and an oversaturated market are threatening their survival. Some operators blame the city’s density cap rollback for worsening conditions.A federal lawsuit alleges that California’s cannabis regulators and Metrc, its track-and-trace software partner, knowingly allowed the illicit cannabis market to thrive while still collecting taxes on diverted product. The suit, filed by a former Metrc executive, accuses Metrc of ignoring data irregularities and failing to flag suspicious activity, enabling a large illegal market to operate.

A federal lawsuit alleges that California’s cannabis regulators and Metrc, its track-and-trace software partner, knowingly allowed the illicit cannabis market to thrive while still collecting taxes on diverted product. The suit, filed by a former Metrc executive, accuses Metrc of ignoring data irregularities and failing to flag suspicious activity, enabling a large illegal market to operate. 

From the swamp

Licensed cannabis businesses and related companies are bracing for higher operating costs, customer losses, and potential vendor fallout following President Trump’s sweeping tariff policy.

The Drug Enforcement Administration (DEA) failed to set a briefing schedule for the cannabis rescheduling case, and no progress has been made on its interlocutory appeal. The delay adds to growing frustration within the industry over stalled federal reform.

Trump’s top intelligence nominee stated that past cannabis use shouldn’t disqualify candidates for security clearances but expressed reservations about current use.ting that voters in his home state of Arizona and nationwide want clear federal cannabis policy changes.