Hi all,

Don’t forget to sign up for the virtual conversation with Humboldt legend Kevin Jodrey, Friday January 19 at 1 pm PT. We’ll be talking about the state of the Emerald Triangle and his recent strain hunting trip to Pakistan.

In the newsletter:

• Feds to release rescheduling memo

And lots more!

Alex

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WHAT’S NEXT FOR STIIIZY?

Last month, the LA Times reported that a Stiiizy co-founder had owned nine properties that tenants used as unlicensed dispensaries.

WeedWeek subsequently reported on a lawsuit filed by a former CEO of Stiiizy’s parent company alleging that two Stiiizy co-founders, engage in unlicensed market activity while “continuing to direct and manage” the licensed company. In another lawsuit, also first reported by WeedWeek, a Stiiizy partner makes similar allegations about the co-founders, who are allegedly barred from legal market activity.

Stiiizy President Tak Sato called former CEO Jon Avidor’s allegations “baseless.” He declined to comment on the partner’s lawsuit, but wrote in an email that “Stiiizy has absolutely zero connection to any unlicensed stores or sales.”

What happens next?

The U.S. Department of Health and Human Services said it would release the entire memo outlining its recommendation to make cannabis a schedule 3 drug, as well as related documents. The move comes in response to a lawsuit filed by lawyer Matt Zorn.
Marijuana Moment, On Drugs

The documents will be included in a federal register notice that announces rescheduling. “This could mean that a rescheduling is imminent — or not,” Zorn writes. The decision, widely assumed to be between schedule 3 and the much more restrictive schedule 2, now rests with the DEA, which recently made a point of asserting its authority in the matter.
McGuire Woods

Read the story…

Federal:

• Canna Law Blog graded President Biden on his weed policy. It also makes some predictions about gun rights for cannabis users.

Business:

• The CEO responsible for Solo Stove’s Snoop Dogg ad campaign got fired.
  Outdoor Retailer
• GreenState asks if alcohol is “so last year.”
• A piece at OnLabor discusses the industry’s relationship with labor unions.
• MSO 4Front named Andrew Thut CEO, replacing Leo Gontmakher who remains on the board.

State and local:

• MJBiz reported on a recent crackdown in Oklahoma.
• Wisconsin Gov. and legalization supporter Tony Evers (D) said he’d support a more limited GOP-backed MED proposal.
  AP
• Virginia Gov. Glenn Youngkin (R) isn’t interested in Democrat-supported bills to legalize REC sales.
  Virginia Mercury
• Illinois sales ended 2023 strong.
  New Cannabis Ventures
• A Florida bill proposes capping REC potency.
  The Capitolist
• Arkansas 2023 sales set a new record.
  CBS
• Hawaii AG Anne Lopez (D) released a framework for REC legalization, which she opposes.
  The Garden Island
• A Montana judge struck down a “cumulative fee” on dispensaries.
  Helena Independent-Record
• A Washington state judge rejected, at least initially, a lawsuit seeking to undermine the social equity program.
• Kentucky Gov. Andy Beshear (D) wants to expand the qualifying MED conditions. The state chose Metrc as its seed-to-sale software provider.
  Louisville Courier-Journal
• Buyers from El Paso, Texas have transformed nearby Sunland Park, N.M. into a “little Amsterdam.”
• Westword visits Ordway, Colorado’s first “cannabis ghost town.”

Health and science:

• More teens who use weed are suffering from psychosis, the Wall Street Journal reports.
  WSJ

Fun and interesting:

• Wiz Khalifa showed up high for a parent teacher conference.
  Page Six

State:

• DCC issued a mandatory recall for a batch Gelato’s Orangeade flower on account of fungus aspergillus and Eschen Industries issued a voluntary recall for a batch of Fog City Farms infused pre-rolls due to the presence of pesticide spiromesifen. 
• MJBiz has the latest on DCC’s testing lab crack down. And six more labs were approved to test flower.
• Gov. Gavin Newsom proposes using $100M in pot tax revenue to help close the state’s $37.9B budget deficit.
  Marijuana Moment
• A State Assembly committee approved a bill to create a psychedelics working group to prepare for legal access.
  Marijuana Moment

Business:

• Lindsey Bartlett reported on the ordeal faced by Connected Cannabis Co. CEO and co-founder Caleb Counts after he caught a possession charge at the Sacramento airport.
  Forbes

Local:

• Derek Hubbard, owner of Santa Cruz-operator Decibel Gardens, was released from house arrest. Hubbard has been charged with multiple felonies after he fired shots during an attempted burglary at the business.
  East Bay Times
• San Jose is throwing its pot shops a lifeline.
  Mercury News
• Humboldt County Democrats urged no on measure A, a reform opposed by growers.
  Mad River Union
• The city of El Monte (LA Co.) has been cashing in by taking unlicensed growers to civil court.
  California City News
• Two WeHo shops hope to alter their licenses.
  WeHo Online
• San Diego activists held a cannabis equity rally ahead of mayor Todd Gloria’s state of the city address.
  OB Rag

Company milestones:

• Cookies CEO Berner is accepting applications for his exclusive new Eleven Eleven Supper Club.
• Lehua Brands announced a new leadership team as it expands to Canada.

Job Moves:

• Attorney James Anthony joined Armada Law Corp.