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HIGHLIGHTS: Movement on NY adult legalization, CT issues adult use regs + MORE!
+ MORE: Senator Booker Write Decrim Letter to AG, California legalizes CBD products, Trulieve completes Harvest acquisition…AND MORE?!
Hybrid News/Analysis Extract from 420+ Sources: Featuring all the developments this past week in the cannabis world on the federal level, state legalization/implementation, science/technology, business deals, international scene, social equity, celebrity cameos, and miscellaneous ridiculousness.
DISCLAIMER: All opinions are my own, and not those of my law firm Zuber Lawler. Even though I drop knowledge bombs, the show is NOT legal advice.
Send comments to: jp@globalcannabistimes.com
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Transcription
WE NOTE THAT THE FOLLOWING TRANSCRIPT WAS CREATED BY A ROBOT THAT MAY NOT HAVE APPRECIATED THE FINE POINTS AND NAMES SPOKEN BY JON, SO PLEASE FORGIVE ANY TYPOS, OR BIAS IN FAVOR OF OUR FUTURE ROBOT OVERLORDS:
I am so pleased to welcome all two of you to the inaugural episode of cannabis last week, brought to you by global cannabis times honey, I just want to thank you for listening, I know that you say with me all condos lead to cannabis, so I really appreciate the support.
I’m your host Jon Purow and welcome to the you know the kind of this last week aka the weekend data need just less funny.
In our highlight stories this week and that’s exhibit a in terms of upon that’s always intended not headlines highlight stories – There is movement on New York adult use legalization and also on the state level Connecticut has released its regulations for the adult use market.
Now, before we get down to business, I need to quickly offer my standard disclaimer.
When I am not fighting crime by night as Batman I practice cannabis and or IP law at the law firm Zuber Lawler so I need to know that any of us, I expressed for my own and not those my law firm, for example.
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If I was to say that Facebook might be just a smidge as evil as the warden from Shawshank redemption that’s my own view and not that as Zuber Lawler. And second just because I’m a lawyer doesn’t mean that this podcast is legal advice so don’t be a dumb ass and act like it is and just one last thing-If you want to subscribe that’s great because my ego needs constant inflation and if you have any feedback shoot me an email at jp@globalcannabistimes.com.
In our highlights story there is actually movement more progress towards legalization in New York and the implementation of the adult US market. There’s movement, as much movement is when you eat an entire jar full of prunes.
The cannabis Control Board already met the for the first time, a week after being fully appointed by new acting governor Kathy ‘local,’ whose name I took the time to pronounce, which I can’t say that I’m going to do for all other politicians across the country on the show.
So, in terms of the adult US market at the meeting they staffed up with 22 workers who were going to be the worker bees actually writing the regulations for the adult US market. So, based on other states, I would say now that they’re staffed up to expect the regulations to be issued and say two to five months. And they also actually made a couple tweaks to the medical marijuana market inside the New York state, including they finally approved the sale flour.
So, in our other highlights story Connecticut is actually released the regulations for its adult-use market.
Now shifting over first and foremost as we always will to federal news – The IRS has launched the new initiative to educate companies in the cannabis and marijuana industry about how to proceed with taxes For those in the know IRS section 230e prevents deductions for anything other than cost of goods sold, so those would be helpful to educate other companies.
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Now let me just, since this is the first episode recap the landscape on federal legalization but before I know one piece of news.
• The House can’t stop passing the more act to legalize marijuana but, unfortunately, no one in the Senate is little orphan Oliver saying, “please sire, may I have some more.” And so, every time back you know when they passed when I was McConnell a died and was Schumer it’s still not going forward because, Schumer has his own legalization bill, the problem with it is I didn’t unfortunately appears have a snowball’s chance in hell of passing- And here, is why one example of why I read 30 articles about every story to give you some of the really inside info. The democratic senators, who are an issue, and I’ve stated as such are Jeanne Shaheen of new Hampshire and here’s an interesting one Jon Tester of Montana.
Why is it interesting that he doesn’t support legalization?.. because the voters of his state and the ballot, voted for it, and it is now law.
Because Montana Governor, Greg Gianforte, most famous for body slamming reporter back when it was going for the House of REPS signed in it. And so Jon Tester is what I like to call a no better and I promised to come up with something more punny to describe these politicians who don’t support something even when their voters do.
And so, he doesn’t have the support of his own party (Chuck Schumer) and he certainly ain’t going to get 10 Republicans to cross over which 60 is what you need from senators, in order to pass anything these days. And as much as he likes to say Schumer that he could court, the libertarians like Rand Paul- that would involve concessions and social equity, which you know he needs with this co-sponsor Cory Booker.
And the other thing is, while you think that there could be incremental progress and the safe banking act could actually get bipartisan support in the Senate. That’s not necessarily going to play because Senator Booker specifically said, and I quote over his dead body is there going to be any federal progress will say banking without social equity tied to it.
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So what happened this past week that was notable?
In a bit of a different play senators Elizabeth Warren and take note Cory Booker sent a letter you know because so much happens because of letters to Attorney General Merrick Garland stating that he has a unilateral power to and should decriminalize marijuana, by removing it from schedule, one of the controlled substances act, now, this gets interesting because, if he does this and a broader legalization bill dies by overreaching perhaps has paved away because it will address social equity, for safe banking and other incremental progress to pass.
And they’re actually ways that Merrick Garland can do this built into government: One is to ask for a scientific review under the Department of Health and Human Services, which would outsource that to the FDA and so, while I got really, really excited by the story, I did some deep dive research and unfortunately found out that this petition process through the AG, takes years. So it is possible, a federal legalization can happen before this actually runs its course if Merrick Garland takes it on
Moving over to the state news as I like to call it State of Play.
In California and news that you would have expected say three years ago, after the passage of the Farm Bill Governor Gavin Newsom has finally legalize hemp derived products which include those that contains CBD derived from him, which in turn include injectable products containing CBD, which we’re still waiting on FDA regulation for years later.
Now, just to be clear, a California did not legalize delta eight, because it is one of all states that do not approve of delta it and some of them have already explicitly made it illegal and the only state that zagged where others zigged was Florida, which actually said yes delta eight is cool.
Also in California, we need to look at this market here because it hasn’t exactly played out, as everyone has intended or light to because possibly one reason the still.
Titanic number of illicit grows and so all the time and the industry, every week you see another big bust that California does. And so, this week was no other exception, however, one of the other issues is that there are thousands of provisional license holders that have been not issued full licenses there is a backup, and so the state is actually investing 100 million dollars to prop this process along and specific jurisdictions.
Moving over to Oklahoma and advocacy group file to initiative petitions to legalize adult new sales and replace the men marijuana regulatory agency, and so they’re moving forward to a question on the ballot and an upcoming election.
There is a lot of movement in many states on ballot initiatives which we will cover comprehensively on another episode, the most notable of which I have to say is Ohio, because when you’re trying to think about the size of the market for each adult use state look at the number of electoral college votes which are tied to population and Ohio is actually going to be a significant market.
Moving over to Pennsylvania another State that has a nice chunk of electoral college votes. So two democratic state senators introduced an adult use legalization bill.
Big whoop that’s not actually the news, the news is that republican Senator Mike Regan introduced his own adult use bill and so, that is actually notable because Pennsylvania surprisingly in polls, of the state of voters in the state has way lower approval ratings than states like say Louisiana in the deep south, which has 70% support for adult use the last poll, I saw in Pennsylvania was actually only 56% support for adult use.
Now I want to just also move over Virginia where there’s something interesting to consider here as well. now Governor Northam has you know, signed a bill there’s going to be an adult use market there the interesting thing about that bill is that adult use sales aren’t going to start until 2024. And so, why is that important because, in the interim they’re going to be other statewide elections that could end up bringing in politicians who really don’t care as much for the adult US market so, for example, right now – there’s a gubernatorial election in 2021 and Terry McAuliffe I think former governor going back again it’s all for the adult use market is a democrat. However, the gubernatorial candidate from the Republican Party has specifically stated that legalization failed and other states, so he wins statewide election, don’t exactly think that he’s going to be racing to implement this adult use market and would likely find some way to hamper it. So, just because a bill is passed don’t think that the war has been one, so the statewide election is quite important.
Moving over to the business section, or, as I like to call it Green New Deals. Trulieve, behemoth MSO has completed its acquisition of hardest health and recreation for $2.1 billion, creating effectively the six foot gravity bong of cannabis companies. So now in terms of the footprint, we are talking about.
11 states with 22 groves and 150 dispensary’s especially a bunch in Florida where truly is best. Now a note about Florida – MJBiz Daily flagged it interesting story that said that other MSOs large multi state operators have spent over $500 million this past year to make inroads in Florida where True Lead is effectively dominant. And what is a $1 billion medical marijuana market with the potential for a lot more and adult use though all of your grandmas and grandparents probably haven’t had an issue getting medical card there.
Moving on to other news.
Keep an eye on the Ohio market, as I said, which is going to be quite large, because what are we going to see there we’re going to see the same model that the large MSOs have employed in other states where they start requiring medical licenses in order to then lobby for adult use legalization and then get grandfathered in with the first grows and the first sales. And so, take note when you see a story like a send wellness requiring to Ohio dispensary’s now before these ballot initiatives, most likely will happen.
In our next story Jay Z’s parent company where I’m sorry the parent company yes that’s actually the name of it, it is upon so therefore I appreciate it. Jay Z’s company continued its big pimpin’ ways by acquiring coastal holding company and its dispensary’s for $16 million in cash up to 40 million in equity if certain benchmarks are hit to expand their imprint in California.
And our next story a can amiss, and that pun, I need to thank my 10 year old daughter for coming up with, and she actually said that I was legally required to give her credit for it or she would sue me. That’s what happens when you have children have to lawyers. In a can amiss MSO Cure O Leaf if it’s now been sued by four different parties do to a labeling error and Oregon that lead consumers who thought that they’re consuming CBD wellness products to instead be consuming high thc psychoactive products.
In baked news wait for it yeah you got it not fake news on this podcast big news which means you should not give a grain of salt to what I’m going to say next.
In fake news your grandma from Oregon who was trying to CBD wellness products for the first time and it said, one of those has released a statement saying “that was not what I was expecting at all, but i’d like some more.”
Moving on, MSO Four Front? ventures as acquired mass base cultivator in New England cannabis corp for $55 million and that’s all we have in business.
Now we typically cover science and medical news on the podcast but there was no notable news in that arena, this week, so we are going to move on to international and talk about Mexico which, if me legal would be the largest adult use market in the entire world because they have 150 million people now there’s a long convoluted process towards adult use legalization here, because the Supreme Court passed it, I think, four times in order to require the legislature to make it law, and now they missed their first couple opportunities to legalize it, however.
A top Senator is saying that the session that started September 1 is going to be the one that ends up producing actual bill, now i’ve been enjoying following Mexico in particular because there’s a fun precedent of them gifting marijuana to each other on the Senate floor in different ways we’ve had one Senator who gifted a joint we have had one Senator that also gifted an actual marijuana plant so basically if we don’t legalize within six months they’re most likely, they will be doing bong rips on the Mexican Senate floor. So I don’t know if I’m rooting for legalization or not, to be honest with you at this point.
Moving over to social equity news in a really nice story Bipoc Women have launched the people’s group, which is a $50 million fund for social equity in cannabis, so a really, really nice development they’re
Moving over to our silly little celebrity cameos Justin Bieber has entered the cannabis market with a brand called peaches, which I’m happy to say, I did not know was the name of one of his songs so welcome to the market Justin.
And Clint Eastwood said, make my day punk to Lithuanian company that pimped out his likeness and relation their CBD products by winning a $6.1 million award. Good luck collecting that if the company is based in Lithuania.
Moving over to miscellaneous news.
The nba is announced, once again, that is not going to randomly test players for candidates, which is you know, the latest league that is moving steps incrementally towards acceptance of it, especially when there are multiple players and states that have legalized.
In related baked news Kevin Durant’s is going to try and trick Kyrie Irving into taking the code of vaccine by telling him that he needs to try the latest greatest way of enjoying weed, by injecting it. So fingers crossed for the Brooklyn nets, who I root for since I’m since I am located in nearby.
Rolling Stone covered an article about herb rocks a company that sells THC products across state lines, despite federal illegality, but the company says that it’s cool and legal because the thc is all derived from hemp which typically has point 3% thc.
In baked news, the company also announced that they will be selling crack rocks containing crack cocaine, but that’ll be cool and legal because the crack is chemically converted from hemp – which is legal and yes, that just shows you the ridiculousness of this whole argument that if you get it from him then it’s legal.
In psychedelic news, the city of Seattle has decriminalized number of psychedelics so as I like to say psychedelic legalization by a million micro doses every little bit counts, so thank you Seattle, for being on the forefront.
And then, our last story beetle Paul McCartney or former Beatle Paul McCartney more accurately has apparently needs to protect his hemp crop by chasing thieves away from it, who think that it is actual marijuana. So I’m just going to tell you right now I am not going to subject you to my singing voice, very often, I will spare your ears and not dent them but.
Just this one’s on this inaugural episode sing it with me now paulie hemp fields for ever, and with that I want to say, for the first time, my sign off, which I am most proud of stay grassy my buds and i’ll see you next week.
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