Hi all,

We’re excited to introduce the first issue of WeedWeek California Pro, the only publication for people who make money in the world’s largest cannabis market. 

In this new newsletter, I’ll deliver exclusive reporting and analysis every week. Subscribers will also have access to our new, interactive tax and licensing maps, powerful tools to help you better understand the Golden State’s $5B+ cannabiz. 

Check it all out with a two-week trial for just $1. 

And don’t worry, we’ll still publish the free WeedWeek newsletter on Fridays.

Thanks for reading. I hope you find it valuable.

Alex

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LA’s Department of Cannabis Regulation held a webinar yesterday on forthcoming changes to the city’s cannabis ordinance.

Built on top of entrenched grey and illegal markets, the city known as the world’s largest market has struggled with a host of challenges since the California REC market opened in 2018.

• Cat Packer, the department’s first executive director stepped down in early March. Her former deputy Michelle Garakian has the reins on an interim basis.

Largely in response to frustrated applicants, the city began an ordinance review process in September. Among other goals, the new draft ordinance aims to clarify and accelerate licensing, with an emphasis on ensuring a smoother process for social equity applicants.

Among its proposals:

• A lottery, probably next year, would determine winners of the “phase 3, round 2” process for social equity applicants seeking retail licenses.
• They no longer have to be holding the property to apply for a license, but the definition of who qualifies as a social equity applicant is narrower.
• City cultivation licenses would be reserved for social equity applicants through January 1, 2025.
• Emily Hackman, a license specialist with law firm Vicente Sederberg, said one big takeaway is DCR would have to meet codified deadlines for responding to applicants 

The new ordinance could be approved by city council as soon as April, but they will also have opportunities to modify and delay it. 

See the city’s presentation here.

State Sen. Dr. Richard Pan (D – Sac.) is holding a virtual press conference today to support SB 1097, the Cannabis Right to Know Act. It would require cannabis products to carry big yellow warning labels.

If the bill passes:

• One-third of packages would have to be covered with warnings about DUI, use during pregnancy and cannabis’ potential to contribute to mental health problems, especially when THC is consumed frequently or in high doses. 
• One of the messages would say: “WARNING: Buy Legal! Illegally sold cannabis is more likely to contain unsafe additives or harmful contaminants such as mold or pesticides.”

The California Cannabis Industry Association opposes the bill.

In a March 25 letter to Sen. Richard Roth, (D-Inland Empire), chair of the Committee on Business, Professions and Economic Development, CCIA executive director Lindsay Robinson argued the bill would:

• Create additional regulatory burdens for an industry that has its share
• Be redundant since products already have “significant and effective warning labels”
• Lead to increased landfill waste and carbon emissions
• Do nothing to reduce demand for illegal product

The bill’s supporters include the American Academy of Pediatrics, the American College of Emergency Physicians and the American College of Obstetricians and Gynecologists.

• California ER visits with cannabis as the primary cause have increased from 9,793 in 2016 to 14,999 in 2019.

Dr. Lynn Silver, a pediatrician and senior advisor to with Getting It Right From the Start, a program by of the non-profit Public Health Institute, which promotes public health and equity on cannabis policy called the labels a “very low cost intervention.” 

• “I think it’s in the interests of the cannabis industry for consumers to have safer positive experiences and to avoid adverse experiences,” Silver said. 
• She expressed optimism that the bill would pass. “We hope to have the support of the cannabis industry as well.”

San Diego County, the second most populous in the state, also has one of the lowest concentrations of dispensaries (See chart below). Now it’s seeking to develop an equity program and crack down on the illegal market. 

This week a company contracted by the county, Womxn’s Work Consulting kicked off a listening tour to discuss what equity could look like.

• Aside from familiar equity issues, participants made intriguing, but unlikely suggestions like community cannabis gardens, farmers markets and government purchase quotas.  
• Womxn’s Work is also conducting a community survey on what equity should look like and who should benefit. The responses will inform how the county shapes the program.
• The listening tour continues Saturday at 10 a.m. You can tune in on Zoom. 

Politics:

• A new bill seeks to increase MED access. Some worry it could backfire. Following the article’s publication, the bill was amended.
  SF Chronicle

Regulation:

• The Department of Fish and Wildlife is accusing an illegal grower in Kern County (Bakersfield) of multiple environmental violations.
• Arizona regulators face a third lawsuit over their social equity program.
  Phoenix New Times

Business:

• Mega dispensary Planet 13 saw revenues rise and net loss fall on its FY2021 and Q4 earnings.
• Arizona-based Pro Hospitality Group purchased a boutique hotel near the Las Vegas Strip with plans to make it a 420-friendly venue.
  Las Vegas Review Journal
• Miss Grass, currently available in California, Nevada and Massachusetts, is partnering with MSO Ascend Wellness Holdings to fuel its national expansion. Illinois is next.
• MSO 4Front said it would acquire Island Cannabis for an undisclosed sum, the first step of a broader California strategy.

Fun and interesting:

• Weedmaps is partnering with rapper Killer Mike on a docuseries about weed culture in Las Vegas, SF, New York and Chicago.
  Forbes
• High Times‘ Jon Cappetta shared his favorite new products.

Our first chart of the week digs into WeedWeek‘s maps and state data to find the California counties with the fewest retail licenses per person, (storefront and non-storefront).

The graph takes us from Los Angeles County, where 328 active licenses amounts to just one per 30,000-ish people to Placer County which has one active license for its population of just over 400,000 people. It’s Golden State Patient Care, in Colfax, in case you’re hard up. 

• To be included, a county had to have at least 1 pot shop and 100,000 people.

Company Milestones:

• Monthly subscription box Nugg Club is expanding to the Bay Area.
• Mike Tyson’s Tyson 2.0 (“undisputed cannabis”) brand acquired a majority stake in former pro wrestler Ric Flair’s Drip business entity enabling it to launch a new line of celebrity branded products.
• SoCal flower brand Stone Road is expanding to Massachusetts. It’s also available in Michigan and Oklahoma.
• Pabst Labs opened a new factory in Desert Hot Springs.

Job Moves:

• NUG named Timeka Drew Chief Growth Officer.
• Arizona-based law firm Bianchi & Brandt hired Nico Pento and Rick Stilgenbauer to help launch its new public policy practice.  

Upcoming:

• NorCal Cannabis co-CEO Jigar Patel will discuss his use of the A3i LED lighting, by Fohse, in an April 6 webinar. 

Send your milestones to hello@weedweek.com

Collin Palmer, head of formulations at PAX with Chris Sayegh “The Herbal Chef,” and PAX COO Steven Jung smile for the camera at a tasting event for PAX’s new Live Rosin with Natural Diamonds vape pods.  Sayegh hosted the event at Nostalgia Bar & Lounge, his restaurant in Santa Monica. 

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Send High Society pics, company milestones, job moves, product news and upcoming events to hello@weedweek.com