Hi all,

The sun is finally coming out in SoCal so let’s get to it.

In the newsletter:

• Calif. lawmakers weigh payment mandates
• A wild week in New York

And so much more. Enjoy,

Alex

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California Lawmakers weigh payment mandates

A new report this week from Whitney Economics estimated that cannabis businesses nationwide owe a combined $3.8B in unpaid accounts receivable, with the amount expected to jump 10% this year. But is government enforcement the answer?

This week the California State Assembly’s Business and Professions Committee heard testimony on A.B. 2888 that would require all bills to be paid within 15 days of the due date. When a bill doesn’t get paid the licensee would have to…

Read the story…

PLUS: 25 California companies that are behind more than $500,000 on their taxes. Are your retail partners on the list?

In case you missed it:

• Eaze workers vote to authorize 4/20 strike
• SCOOP: Gelato owners withdrew anti-union lawsuit

In a “jaw-dropping” decision Wednesday, a New York judge invalidated all state REC regulations, before reversing himself to issue a much narrower decision.
N.Y. Cannabis Insider

Judge Kevin Bryant’s ruling came from a lawsuit filed by consumer site Leafly challenging rules that banned third-party marketing for brands, which would have blocked it from doing business in the state. Bryant’s initial decision voided all regulations governing the market, a major setback for the already troubled regulator.

In his decision, Bryant said that regulators essentially wrote and approved stringent regulations without demonstrating any factual basis,” NY Cannabis Insider reports.

Following an uproar, he walked back his decision to only void the rule that banned third party advertising, a victory for Leafly. Bryant’s initial and amended rulings, however, are both sharply critical of state regulators and he left the door open to future challenges.
MJBiz

RELATED: Libertarian site Reason argues New York’s legalization “disaster” was entirely predictable.

Federal:

• In a deep dive on the hemp industry, MJBiz‘s Chris Roberts writes that the much anticipated federal Farm Bill may not happen this year. And even if it does, it may not address the language which created the hemp-derived intoxicant market.
• NORML‘s board rejected a proposal to merge with Marijuana Policy Project (MPP) CelebStoner reports. The pioneering non-profits are both struggling financially and without leaders.
• The House Republican Policy Committee is coming out against legalization. Cartoonist Brian “Box” Brown took on their arguments.
  PoliticoPro, @boxbrown

Business:

• A report from Whitney Economics concluded the industry has $3.8B in accounts receivables debt, and climbing.
• The industry still struggles to manage all that cash.
  WSJ
• Investment firm Poseidon made its first New York investment in consultancy Platform Cannabis Advisors.
  MarketWatch
• Online marketplace Leaflink published its wholesale pricing guide for key markets.
• Sales remained slow in February according to data shop BDSA.
  New Cannabis Ventures
• Federal OSHA officials hosted an event on cannabiz worker protections.
  Marijuana Moment
• Hipster-oriented movie theater chain Alamo Drafthouse introduced a 420-themed food menu with support from edibles-maker Wana Brands.

State and local:

• New Jersey businesses are set to do $1B in sales this year.
• Canna Law Blog discusses the Oregon industry’s serious financial problems.
• Massachusetts granted a “megapardon” for misdemeanor pot convictions.
  MassLive
• Proposed legislation could ban most hemp-derived drinks in Missouri.
  Missouri Independent
• Maryland licensed 174 equity operators.
  MJBiz
• A New Mexico man who was fined and stripped of his license just expanded his operation.
  KUNM
• GreenState ranked the best selling brands in Nevada.
• In Ohio, lawmakers likely won’t reach a deal to alter the state’s new REC law.
  Cleveland.com
• On Election Day, Floridians will vote on REC and a six-week abortion ban which could make it more competitive in the presidential election as well. Trump won Florida in 2016 and 2020.
  New York Magazine
• Florida’s REC ballot initiative has largely been backed by Trulieve, which is based in the state. But now MSOs Verano, Curaleaf, Ayr Wellness, Cresco Labs, Green Thumb Industries and INSA which represent a combined 256 shops in the state have added $15M to the campaign.
  Cannabis Business Times
• Hawaii’s REC bill is dead for the year. But MED shops can now sell pre-rolls.
  Spectrum News, Kauai Now
  
• A limited MED bill in Kansas is also done for the year.
  Kansas Reflector

Crime:

• Oregon Gov. Tina Kotek signed a bill to recriminalize some drug possession.
  USA Today

R.I.P.

• Detroit poet, activist and counterculture icon John Sinclair died at 82 after 70 years of a “total assault on the culture through rock, dope and fucking in the streets.”
  @johnsinclairfoundation

Fun and interesting:

• Las Vegas Cannabis Weddings now offers a divorce package.
• Total eclipse survival guide.
  VT Cynic

State:

• Tech consultancy Higher Origins suggests buyers clubs offer some lessons for today’s market mess.

Business:

• Oakland-based delivery service Smoakland acquired manufacturer Sublime for undisclosed terms. Smoakland is also hiring a content creator to smoke weed all day. It pays up to $85,000/year, plus benefits.
  SFGate
• Brand accelerator Petalfast acquired Arizona’s largest distributor, Flow Distribution.
• Big California brands are targeting price sensitive consumers.
  Green Market Report
• @JadeNectar raises questions about microbusiness licenses.
• High Times abruptly closed at least three of its branded California shops last month. Ananda Consulting’s Hirsh Jain writes to WeedWeek that an estimated 40-50 California shops have closed in the last six months.
  Green Market Report

Local:

• Sonoma County is seeking public input into a proposed update to its local ordinance.
  Bay City News

Company milestones:

• Pre-roll player Jeeter is releasing its first flower line: Red Label.
  Benzinga
• The Bloom Brand is coming to Michigan.
• A new Dr. Greenthumb’s is opening in Fresno’s Tower District.

Recognition:

• The winners of the High Spirits Awards are now available.
• The Women’s Canna Awards also announced their winners.

Toni Forge (4 Leaf Consulting), Tiana Woodruff (Queen Mary), Mike Lomuto (MCBA), Timeka Drew (Biko Flower) and Anthony Alegrete (40 Tons) were all smiles at the Minority Cannabis Business Association Equity Workshop Tour last month in LA.