Hi all,

The green shoots of federal reform seemed a bit better nourished this week. But California still has plenty of problems.

See below,

Alex

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EXCLUSIVE: Catalyst’s battle for Fontana

A lawsuit in the Inland Empire shows some of the reasons why local control of licensing remains such a challenge for California retailers.

Read the story

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PLUS: Hemp lobby threatens law suit over Newsom ban

The L.A. Times reports on ongoing “tumult” at the California Department of Cannabis Control (DCC) and in the market.

“Product testing, confidential lab reports, public records and interviews show California regulators have largely failed to address evidence of widespread contamination,” since an LA Times/WeedWeek investigation in June.

DCC chief deputy director Rasha Salama is departing the agency, following a lawsuit from her former direct report, alleging that Salama “severely reprimanded” her after the plaintiff contacted law enforcement about allegations of fentanyl added to licensed product. The agency has yet to respond.

• In recent months the agency has seen additional senior departures, including Jeff Merriman, who ran the compliance division; chief general counsel Matthew Lee and chief deputy for legal affairs Tamara Colson.
• The DCC confirmed that it had contracted a private investigator “to examine work within the division Bogans had supervised, ‘to improve its processes.’
• The confidential findings will be presented to Elliott’s office, as well as the department’s legal affairs and employment offices, the paper reports.
• The piece also involves Catalyst Cannabis CEO Elliot Lewis’ efforts to self-regulate, including promoting “products that undergo expanded testing beyond the 66 chemicals required by the state.”

Read the whole thing

Federal:

• Biden acknowledged that rescheduling isn’t a done deal. But the DEA is acknowledging the legitimacy of the two-part test the Department of Health and Human Services uses to demonstrate cannabis’ medical use. The test has attracted scrutiny since June when the U.S. Supreme Court overturned the landmark “Chevron deference” precedent on the role of regulators in setting policy. 
  Marijuana Moment, WeedWeek
  
• In a recently uncovered recording, President Richard Nixon, who started the war on drugs, privately said pot was “not particularly dangerous.“
  NY Times

Business:

• David Goubert, the CEO of MSO Ayr Wellness stepped down suddenly.
  Green Market Report
• Florida-based Fluent is planning a town hall in response to social media posts of poor growing and working conditions at a Tampa facility.
  Green Market Report
• After a weeklong strike, reporters at Law360 won a contract deal.
• Attorney Whitt Steineker asks whether civil litigation, such as lawsuits alleging cannabis causes psychosis, could be the industry’s “most dangerous foe.“
• Missouri-based Show-Me Organics has a new ad with some pointed words about the opiate industry and Big Pharma.
  AdWeek
• A new survey shows that pot is cutting into alcohol sales.
  GreenState
• Javier Hasse profiles creator Dope as Yola who landed a Spotify deal.
• Industry entrepreneur and former NBA star Carmelo Anthony will appear at MJBizCon.

State and local:

• Florida’s REC initiative, which needs 60% to pass, has divided the state’s GOP. If it passes GOP officials may try to limit its scope while the state’s top Democratic lawmaker, who supports the initiative, said she wants to overhaul the state market’s structure, which requires vertical integration.
  MJBiz, Tallahassee Democrat
• MSO Trulieve has contributed nearly $90M to the initiative.
  Health News Florida
• Pennsylvania lawmakers filed a bipartisan REC legalization bill.
  Forbes
• The New York market is showing signs of life.
  MJBiz
• Court challenges loom for New Jersey’s hemp ban.
  PBS
• Missouri regulators issued another big recall, involving questions over lab testing.
  Springfield Daily Citizen
• Also in Missouri, hemp sales are back on.
• Struggling New Mexico retailers say the state market is overcrowded.
  Santa Fe New Mexican
• Workers at two Maryland dispensaries voted to unionize.
  Cannabis Business Times
• A poll showed most Arkansans favor a ballot initiative to expand the state’s MED program.

Health and science:

• Using cannabis increases “positive parenting” behaviors, a federally funded study found.
  Marijuana Moment

Fun and interesting:

• Among the hijinks at Hall of Flowers this weekend, OCB papers will attempt a world record for the most people lighting joints. Wiz Khalifa will host.
  @ocb_usa

State:

• Concerned about Gov. Gavin Newsom’s proposed ban, some are “panic-buying” hemp.
  SFGate
• Meanwhile the industry is watching whether Newsom will sign the farmer’s market and cafe bills on his desk.
  WeedWeek, LA Times
• State pot taxes were down again in Q2.
  Press-Democrat

Business:

• The industry is gathering to celebrate, commiserate and deal-make at Hall of Flowers in Santa Rosa this weekend. The trade show is today and tomorrow is its first ever open to the public festival day.
• Eaze pays shift supervisors less than the recently unionized workers they supervise, the Guardian reports.
• Wildfires are making California farms uninsurable.
  Bloomberg

Local:

• Santee (San Diego Co.) is now welcoming dispensary applications.
  Fox5
• Vista (San Diego Co.) is trying to formalize how to spend pot taxes.
  NBC
• Mendocino grower Casey O’Neill of Happy Day Farms is wishing for sensible regulation.
  Mendocino Voice
• At the peak of harvest season, Humboldt County deputies assembled in Garberville.
  Redheaded Blonde
• Solful set to open the first dispensary in Healdsburg (Sonoma Co.) in early October.
• Two men were busted during San Bernardino Co. wildfire patrols for allegedly possessing $1.5M in weed.
  Mercury News

Crime:

• Videos capture a couple “Romeo and Juliet” allegedly robbing several unlicensed shops. Unlicensed shops are especially vulnerable to burglary because they’re less likely to contact law enforcement.
  LA Times

Company milestones:

• Cookies is opening its first shop in Louisiana, Baton Rouge to be specific.
• The Ventura County Star checks out Glass House’s grow near Camarillo. The county is also collecting millions in taxes from growers.
  VCStar

Volunteers from Trulieve and Pensacola, Fla., on the panhandle, worked to clean trash off the Park West Gulf Side beach. The beach cleanup supported the group Keep Pensacola Beautiful. Their “Yes on 3” shirts support Florida’s upcoming REC ballot initiative.

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