Hi all,

Let’s get to it!

In the newsletter:

• Calif. shops owe $1.3B in back taxes
• WEBINAR: What does Metrc do?

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Alex

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WEBINAR: What does Metrc do?

Veteran cannabis journo Jackie Bryant and I discussed my recent reporting on Metrc, the controversial track and trace software company at the center of more than 20 state markets.

Watch the webinar

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Not yet a Pro subscriber? TODAY ONLY: Get 25% off your first year of WeedWeek California Pro with code: WEBINAR25

In SFGate, Lester Black reports on the latest threat to the state industry: $1.3B in back taxes owed. And taxes are likely to increase again in July.

The money owed “has grown even larger because California has a particularly punitive tax law for cannabis businesses. Most companies face a 10% penalty if they don’t pay their taxes on time, but cannabis businesses face a 50% penalty if they’re late.” One SF shop owner said the principal he owes is roughly $125,000, a fraction of his total $250,000 bill to the state.

Read the story

Federal:

• Congressional Republicans, including House Speaker Michael Johnson (La.) blocked bank reform again.
  Marijuana Moment
• President elect Trump’s pick for a top post at the Justice Department says marijuana is a gateway drug that makes users boring and smelly.
  Marijuana Moment
• The cannabiz “isn’t feeling too anxious” about Trump 2.0, Rolling Stone reports.

Business:

• An insurer is arguing that it is not obligated to cover Trulieve in a lawsuit the MSO is facing over the death of Massachusetts factory worker Lorna McMurrey.
  Law360
• Canadian operator Canopy Growth closed its acquisition of MSO Acreage Holdings. The deal was first announced in 2019 at $3.4B and closed at a tiny fraction of that.
  MJBiz,CNBC
• Here’s why diversified Arizona accounting firm BeachFleischman acquired Nevada-based Indiva Advisors, which serves the cannabiz.
  Phoenix Business Journal
• Yelp of weed Weedmaps wants to raise $224M by more than doubling the number of shares issued to date to stockholders.
  Green Market Report
• Beverage makers are weighing the pros and cons of hemp vs. marijuana.
  MJBiz

State and local:

• Following a lawsuit, Minnesota cancelled a lottery for equity licenses, likely delaying the state REC market’s opening.
  Minnesota Reformer
• Massachusetts unveiled an outline for cannabis lounges.
  WHDH
• A minority owner in one of Michigan’s largest operators had his Pennsylvania office raided by the FBI.
  Crain’s Detroit Business
• Big changes are coming for Ohio’s REC laws.
  WOUB (public radio)
• A lawsuit seeks to block Nebraska’s Republican governor from signing a new MED law approved by voters last month.
  Journal Star
• UNLV’s Cannabis Policy Institute released three reports on the state of Nevada’s industry.
• Wisconsin Gov. Tony Evers (D) says the state should prioritize REC legalization.
  Ganjapreneur
• Prices are slumping in Florida’s MED-only market.
  Green Market Report
• In Tennessee, the hemp industry is trying to block a ban on THCA.
  Chattanooga Times-Free Press
• A New York judge ordered regulators to stop processing licenses for dispensary applicants who did not have a location secured by November 2023, leaving many in limbo.
  Law360
• A Vermont shop sued regulators over ad restrictions.
  Bennington Banner

Health and science:

• Physician and scientist Ethan Russo praised medical concepts developed by Geoffrey Guy, founder of GW Pharmaceuticals, as revelatory. GW developed Epidiolex, a CBD-based pharmaceutical approved by the FDA to treat severe pediatric epilepsy disorders.
• A Canadian study will give people gummies and put them behind the wheel of a driving simulator.
  CBC

Fun and interesting:

• Sir Elton John called legalization “one of the greatest mistakes of all time.”
  Jersey Evening Post

State:

• Unsealed documents suggest State Sen. Susan Rubio (D-LA Co.) was involved in a license bribery scheme in Baldwin Park. A spokesman said she “has no reason to believe that she would be included in any criminal allegations.
  LA Times

Business:

• Attorney Kieran Ringgenberg digs into the nuances of state sales data.
• Emerald Triangle farmers have put together a 12 Jays of Christmas gift box.
  Redwood News

Local:

• During a bust, San Bernardino Co. and state authorities found $100M+ of weed, (45 tons!) packed in garbage bags.
• San Francisco’s largest psychedelic church is leaving the city, citing permitting and related costs.
  SFGate

Recalls etc.

• The DCC announced pesticide-related recalls for Stiiizy, Kind Republic and CRU products. recalls for