February 6 2025,
THE BIG IDEA
Hi all,
Happy Friday! Let’s get to it.
In the newsletter:
- Rescheduling stalls as industry woos Trump
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Rescheduling stalls as industry woos Trump
Trump’s administration is not shaping up to be as 420-friendly as many in the industry had hoped.
Law360 veteran cannabiz journo Sam Reisman writes:Â
“The cannabis legal and business world was divided after a U.S. Drug Enforcement Administration judge hit pause on widely anticipated and historic public hearings on the merits of a proposal to loosen federal restrictions on marijuana.
“While some participants and observers cited allegations of interference and bias on the part of the DEA as justification for a postponement and interlocutory appeal, other stakeholders said the delay would serve only to keep marijuana in the most strictly controlled tier of the Controlled Substances Act.”
In another setback for the industry, Health and Human Services nominee Robert F. Kennedy Jr., seen by the industry as an ally, said he would defer to the DEA on rescheduling, despite his repeated previous calls for legalization.
Marijuana Moment
Even so, the industry is trying to woo the President.
- Leading MSO Curaleaf gave $250,000 to President Trump’s inauguration and Kim Rivers, CEO of rival Trulieve, attended two inauguration week events, one of which was attended by vice president J.D. Vance.
Marijuana Moment
Separately, lawyer turned consultant Marc Hauser writes that federal appellate courts “still don’t really like,” you know what.
QUICK HITS
Federal:
- Elon Musk, who once smoked a joint while being interviewed by Joe Rogan, and later denied inhaling, endorsed the idea of mandatory drug tests for the federal workforce, and his Department of Government Efficiency (DOGE) looks to cut the federal government’s costs. At present, only certain federal positions are generally subject to random testing.
Marijuana Moment - The East Bay Express ponders Musk’s “bizarre rise” to the White House.
- OSHA has issued hundreds of thousands in fines to industry operators.
Green Market Report
Business:
- After eight years, investment firm Navy Capital is winding down operations.
Cultivated - Looking across 15 states, data shop BDSA determined sales dipped 1.3% sequentially in January. Pot stocks had a bad month as well.
New Cannabis Ventures - These state markets topped $1B in 2024.
Leafly - Hemp drinks are becoming more popular.
Washington Post - Ayr Wellness CFO Brad Asher is resigning.
- Brands consider the Super Bowl a marketing opportunity.
MJBiz - A new report found indoor growing generates more carbon emissions than was previously known.
GreenState - Jocelyn Sheltraw, CEO of review site Budist, asks of the industry can break out of the “low-price, high-potency trap.“
- Former MedMen‘s CEO Adam Bierman’s book is now available for pre-order. It’s called, “Weed Empire: How I battled gangsters, investment banks and the Department of Justice to build the cannabis industry in America”
State and local:
- Massachusetts regulators flagged contaminated product at dozens of dispensaries. The news follows a lawsuit in which MCR Labs sued eight competing Massachusetts labs alleging they manipulate test results.Â
Green Market Report, Worcester Business Journal - Pennsylvania Gov. Josh Shapiro (D) is again pushing to legalize REC. But Senate support is not assured.
WHYY, Spotlight PA - Ohio cities worry a new bill could cut a source of pot tax revenue.
Statehouse News Bureau - In Colorado, a test of regulated products organized by Justin Singer, CEO of manufacturer Ripple, yielded “damning results” regarding pesticides, microbes and potency.
MJBiz - Also in Colorado, a new bill would block under 26s from buying products containing more than 10% THC.
Denver Post - A proposed bill in Nevada would require daily hotel room cleanings, in a bid to cut down on illegal weed.
The Nevada Independent - Illinois topped $2B in sales for 2024, up slightly from 2023. And in a previously announced move, the state is switching its track and trace provider from BioTrack to industry leader Metrc. Read WeedWeek‘s reporting on Metrc.
Fox 32 - A new Alabama bill would expand the number of MED licenses and empower a private consultant to award them.
WAFF - Minnesota will start accepting REC license applications this month.
- Tennessee lawmakers introduced separate MED and REC bills.
WSMV - Shop The Travel Agency has the first cannabis ad in a Playbill, the programs for Broadway shows.
MJBiz - Oregon has never grown so much weed and prices in the state hit their lowest ever levels.
Canna Law Blog
Health and science:
- “How safe is your weed?” NPR asks in a new series.
Fun and interesting:
- Weed influencer Florence Mirsky apologized for a racist outburst that went viral.
SFGate - A Tennessee company is infusing THC into king cakes, an iconic Mardi Gras dessert.
NewsBreak
CALIFORNIA HITS
State:
- The Department of Cannabis Control issued 63 product recalls in 2024.
MJBiz
Business:
- Armada Law attorney Robert Finkle posted on the regulatory and enforcement outlook.
- Distributor Nabis announced new partnerships with tech shop Dutchie and California retailer Embarc.
- Cannabis Regulator profiles the hot brand Sluggers.
- Cartoonist Brian “Box” Brown mourns the early retirement of craft brand Real Deal Resin, which has marketed itself with the YouTube show HotDabs.
@boxbrown
Local:
- Facing budget cuts, San Diego’s mayor is weighing a pot tax increase.
San Diego Union-Tribune - A lawsuit alleges wage theft at a farm on the San Francisco Peninsula.
The Mercury News - Due to budget cuts, Oakland cut a $1.8M cannabiz job training program.
SFGate - SF shop Vapor Room, has survived the shooting of founder Martin Olive. Olive is recovering as well.
GreenState - Long Beach could soon allow consumption at special events.
Long Beach Press-Telegram - Santa Barbara Co. supes are listening to proposed amendments on odor control.
Santa Maria Sun
Upcoming:
- Events company Farechild is hosting a “420 State Fair” event on 4/20 at NuWu Las Vegas.
- Dirtybird Campout and the Northern Nights Music Festival are teaming up for a July event on the Humboldt/Mendocino border.
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