Cannabis Dispensary Sues State Over Labor Peace Agreement Rules in Adult-Use Law

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A New York City-based cannabis company is suing the state in federal court over the constitutionality of a requirement in New York’s adult cannabis use law requiring all industry licensees to have labor peace agreements, the Times Union reports. The lawsuit was filed this week in U.S. District Court in Manhattan by Hybrid NYC, a limited liability company that operates a dispensary in Brooklyn under the name Gotham. 

Under the legalization law, labor peace agreements are designed to protect “the state’s proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the entity.” In the lawsuit, Hybrid contends that the “proprietary interests” provision makes the state an industry stakeholder which would violate federal law. Additionally, the lawsuit argues the agreements requirement violate the National Labor Relations Act, which “entrusts the federal government with exclusive and preemptive authority over labor relations in general and over the organizing process for all private sector employers in particular.”   

In the lawsuit, Hybrid argues that the labor peace agreement provision has led to a monopoly by Local 338, which represents grocery, pharmaceutical, health care, transportation, and cannabis workers. The lawsuit claims the union has become “one of the only – if not the only – labor union” that meets law’s standards, which is “further limiting the ability of cannabis license holders to meaningfully negotiate the terms of their (labor peace agreements).”    

The lawsuit is the first in the state challenging the labor peace agreements provisions. 

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Survey Finds Majority of Canadians View Cannabis as Important to Country’s Economy

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A majority (57%) of Canadians view cannabis as important to the country’s economy, and another 62% believe it could play a more significant role in the future economy, according to a survey conducted by Abacus Data commissioned by Organigram Global. The highest levels of support for cannabis as part of the national economy were found in regions with deep cannabis industry ties, including Atlantic Canada (65%), the Prairies (64%), Ontario (62%), and British Columbia (61%). 

In a statement, Beena Goldenberg, CEO of Organigram, said “Canadians want their country to thrive through innovative, homegrown industries – and cannabis is firmly on that list.”  

“The message from Canadians is clear: Canada’s next Prime Minister must remove barriers and support sectors that deliver jobs, growth, and economic resilience.” — Goldenberg in a press release    

The survey found that nearly two-thirds of Canadians surveyed – 64% – indicated they are open to the federal government doing more to help the legal cannabis sector grow.  

According to a 2021 report from Deloitte, the Canadian cannabis industry has contributed more than $43 billion to the nation’s gross domestic product and supports over 80,000 jobs across the country. In 2024, according to data from Statistics Canada, the sector added $7.4 billion to Canada’s GDP. 

The survey was conducted between April 3-8 among 1,915 adults living in Canada.

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Missouri Adds 6k Products to 2023 Product Recall

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Cannabis regulators in Missouri last week identified another 6,000 products that should have been included in the state’s 2023 recall of nearly 63,000 products, the Missouri Independent reports. The Missouri Division of Cannabis Regulation indicated the products should have been part of the initial recall because they were made with the ingredient at the heart of the 2023 recall.  

Amy Moore, the division’s director, in an email to The Independent, said “the department recalled these products for the same reason it issued the original, related recall: It identified a potential threat to health and safety.”   

“The initial recall was a large and complex endeavor requiring expert application of system functionality and program processes. The department has made improvements in both areas since that time and continues to improve in ways that ensure future recalls can better identify all relevant product at initial issuance.” — Moore in an email to The Independent 

The ingredient at the center of the 2023 recall was THC-A sourced from outside the state and then converted to THC by Delta Extraction. In November 2023, state regulators revoked the company’s license.  

The state did ultimately reinstate about 15,000 products from the recall list; however, more than 48,500 remain affected by the recall.  

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Researchers Say LSD Analog Has Potential to Treat Schizophrenia

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University of California, Davis researchers say they have developed a drug from LSD that promotes neuroplasticity and could be an effective schizophrenia treatment.

The researchers created the drug, called JRT, by switching two atoms in the molecular structure of LSD — essentially “a tire rotation,” according to co-author David E. Olson, director of the Institute for Psychedelics and Neurotherapeutics and a professor of chemistry, biochemistry, and molecular medicine at UC Davis.

“By just transposing two atoms in LSD, we significantly improved JRT’s selectivity profile and reduced its hallucinogenic potential,” Olson said in a UC Davis report. The result was a drug that encourages neural plasticity, which is the brain’s ability to change and adapt through life experience, without any of the psychedelic side effects associated with LSD.

Crucially, the researchers found JRT did not promote gene expression commonly associated with schizophrenia, which can be amplified by the use of LSD.

“No one really wants to give a hallucinogenic molecule like LSD to a patient with schizophrenia. The development of JRT emphasizes that we can use psychedelics like LSD as starting points to make better medicines. We may be able to create medications that can be used in patient populations where psychedelic use is precluded.” — Olson, in the report

The researchers also noted that JRT is an effective antidepressant that is about a hundred times more potent than ketamine.

The research was funded by grants from the National Institutes of health, the UC Davis Provost’s Undergraduate Fellowship, the Camille and Henry Dreyfus Foundation, the Dr. Mohsen Najafi Research Award in Medicinal Chemistry, the Boone Family Foundation, Hope for Depression Research Foundation, the Pritzker Neuropsychiatric Disorders Research Consortium, the L.I.F.E. Foundation, the Chan-Zuckerberg Initiative Imaging Scientist Award, and a National Science Foundation NeuroNex Award.

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Tennessee House Passes Ban on Hemp Flower and THCA

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Tennessee House Republicans have passed a bill to effectively ban the sale of intoxicating hemp products in the state, according to a WBIR 10 News report.

Sponsored by Rep. William Lamberth (R), HB 1376 would limit the total THC allowed in consumable hemp products to 0.3%. Lamberth said the hemp products currently available in Tennessee are “extremely intoxicating,” and said “what we do with these products can change lives for better or worse.”

“They should be regulated and sold just like wine, liquor and beer are, with the same type of restraints on them, recognizing that there is great danger in these products.” — Lamberth, via WBIR 10 News

The proposal would also move regulatory control over consumable hemp products from the Department of Agriculture to the Alcoholic Beverage Commission.

Business owners, however, say the legislation would devastate the state’s hemp industry, drive away taxable revenue, and spell ruin for many farmers and entrepreneurs.

“Not only small businesses, but hundreds of farmers are gonna go out of business that rely on hemp,” BLOM Shop owner Travis McKinney told WBIR 10 News. “When it became legal, I saw how many people it’s helped, whether it’s people that are close to you or just a stranger.”

The proposal’s companion bill in the Senate, SB 1413, has advanced through several committees and is scheduled for consideration on the Senate floor later this week.

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Ganja.com Launches Free Listings and Ganja Rewards Coupon System

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ANN ARBOR, MI, April 5, 2025 – At High Noon today, in honor of Ann Arbor’s legendary Hash Bash, Maps.ganja.com officially launches as a groundbreaking online platform designed to simplify and enhance the ganja experience for enthusiasts and newcomers alike. Developed by a passionate team of industry insiders, Maps.ganja.com offers a free interactive map-based guide to discovering free coupons, dispensaries, strains, and ganja-related businesses, hobbyists, and entrepreneurs across the United States and beyond.

Unlike traditional directories, Maps.ganja.com combines free coupon creation and requested location data with user-friendly features, allowing visitors to explore nearby discounted ganja options, read reviews, and stay updated on the latest strains and services. Whether searching for a local dispensary in Ann Arbor or planning a ganja-friendly trip, users can navigate the green scene with ease. The platform also invites businesses, hobbyists, and budding entrepreneurs to add free listings and print free coupons, fostering a vibrant community of creators and consumers.

“We wanted to create a free tool that saves people money while making them happy” said Charles Watts, Managing Director at Maps.ganja.com. “Launching on Hash Bash weekend is our way of celebrating Ann Arbor’s rich ganja heritage while giving everyone—from businesses to hobbyists—free listings, local connections, and a free coupon system.”

Key features include:

  • Interactive maps pinpointing dispensaries, delivery services, and more
  • Free coupons, curated strain information, and user reviews
  • A free listing option for ganja-related businesses, hobbyists, and budding entrepreneurs
  • Free coupon system for ganja-related business stickyness

Headquartered in Ann Arbor, MI, Maps.ganja.com debuts with a bold vision for the future. The team is actively seeking investors to develop the Ganja brand, expanding into premium ganja products and lifestyle gear that celebrate ganja culture. “We’re excited to build a world-wide brand,” added Scott, “not only in the USA but throughout the globe, including Jamaica, Thailand, Spain, Canada, Mexico, and the rest of the ganja-loving countries.” This ambitious growth aims to position Ganja as a household name in both the recreational and lifestyle markets.

For more information, visit Maps.ganja.com or contact Charles Watts at maps@ganja.com

About Maps.Ganja.com:

Maps.ganja.com is your ultimate guide to exploring the world of ganja. With interactive maps and expert insights, the platform helps users discover dispensaries, strains, and local connections effortlessly. Based in Ann Arbor, MI, Maps.ganja.com is dedicated to connecting the ganja community while building the Ganja brand into a leader in products and lifestyle gear.

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Survey Finds Majority of Americans Believe Store-Bought Cannabis Contains Pesticides

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A majority – 54% – of Americans believe store-bought cannabis contains pesticides with 62% saying they are concerned about not knowing exactly what is in the cannabis products they consume, according to a survey conducted by The Harris Poll on behalf of Royal Queen Seeds. 

The survey found strong interest by consumers for growing their own cannabis, with 62% saying they would rather cultivate it themselves than buy it, and 76% saying home growing would save them money.  

In a statement, Shai Ramsahai, president of Royal Queen Seeds, said the company is “seeing a groundswell of support for home cultivation across demographics, driven not just by cost, but by trust.”  

“People want to know what they’re putting in their bodies. For many, growing cannabis is about wellness, empowerment and transparency.” — Ramsahai in a press release 

The poll found a 4% increase in the number of respondents who grow cannabis at home from 11% in 2024 to 15% this year. Nearly half of those surveyed who successfully grow cannabis at home said they do so because it’s fun (46%) and they enjoy growing other plants (46%). Forty percent said home-grown cannabis is cheaper than buying at the store, and 38% said it feels safer consuming home-grown flower than store-bought.

Forty-one percent of respondents who have successfully grown cannabis at home also said they enjoy growing other plants, with 28% also growing their own food.

Despite cannabis possession and consumption being legal for a majority of adults in the U.S., 58% of those surveyed agreed that they were concerned about the potential legal risks of growing cannabis at home, even where it is legal.

This survey was conducted online within the U.S. from March 13-17, 2025, among 2,011 adults ages 21 and older, with 782 self-identifying as cannabis consumers.

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Scotts Miracle-Gro Company Transfers Cannabis Investment Arm to ‘Strategic Partner’

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Scotts Miracle-Gro Company last week announced it is transferring The Hawthorne Collective, Inc. – which holds investments in Fluent, a vertically integrated cannabis company with licenses and operations in Florida, Pennsylvania, Texas and New York – to an unnamed “independent strategic partner” in exchange for an interest-bearing promissory note. 

Hawthorne Collective was created in 2021 as a vehicle to invest in areas of the cannabis industry that Scotts’s Hawthorne Gardening Company subsidiary does not pursue. 

In a statement, Jim Hagedorn, chairman and CEO of ScottsMiracle-Gro, called the move an “initial step” in the company’s plan to move its “cannabis-adjacent subsidiaries into a separate and independent company” as Scotts furthers its focus on its core lawn and garden business. 

“For our shareholders, this will reduce the impact of the cannabis sector’s volatility on our Company’s stock and provide opportunities to drive meaningful and immediate value creation through increased investments in our consumer business. As we further advance this plan, we next will look to separate The Hawthorne Gardening Company from ScottsMiracle-Gro by the close of fiscal 2025.” — Hagedorn, in a press release  

Hagedorn added that the Hawthorne companies “were intended to capitalize on the legal cannabis sector, but the ability to achieve sustained growth within this industry has been challenged by four years of unkept promises resulting in total inaction at the federal level on cannabis-related issues.”  

“President Trump has supported a range of much-needed reforms, from rescheduling cannabis to adoption of the SAFER Banking Act. The actions he has endorsed would accelerate industry growth and increase the value of these investments,” Hagedorn said in the statement. “Until they become a reality, we believe the Hawthorne companies can be a greater asset within an independent cannabis-dedicated entity, specifically one in which our cultivation supply business can partner with a multi-state operator or leading cannabis brands.” 

Under the terms of the deal, Scotts retains an option to reacquire Hawthorne Collective or its assets should cannabis legalization and other measures to positively impact the industry be approved at the federal level.

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Massachusetts Lawmakers Considering Bills to Raise Cannabis Industry Ownership Caps

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Massachusetts lawmakers are considering eight bills that would increase the cap on cannabis dispensary ownership in the state, the Commonwealth Beacon reports. The bills seek to raise the cap from three licenses to either six or nine. 

One proposal, currently in the House Cannabis Policy Committee, would allow businesses that have reached the three-license limit to increase the ownership stake they can have in four additional social equity businesses.  

During a hearing last week on raising the cap, Kimberly Roy, a commissioner on the Cannabis Control Commission, submitted written testimony saying the current license limits “help to create a Massachusetts cannabis industry that encourages full participation, competition, locally owned and operated entrepreneurship … while fostering a diverse marketplace” and that proposals to change the cap “threaten to undermine these goals, harm those we are mandated to help and as a by-product may create a ‘Walmart effect’ supply chain where market consolidation, buying power and price manipulation can be controlled by the wealthy few.”  

According to state data, as of March, there were 393 active adult-use cannabis dispensaries in the commonwealth, up from 356 in April 2024. Another 211 retail dispensary permits are in the approval process, which would make a possible total of 606 dispensaries statewide. 

More than 70 cannabis-linked businesses in the state have signed a letter urging lawmakers to retain the caps. In that letter, opponents of raising the caps said the limits “are critical to fostering a competitive, diverse, and inclusive industry.”  

“Protecting these limits,” the letter states, “ensures the Commonwealth remains a leader in equitable cannabis policy.”  

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Rhode Island Cannabis Regulators Approve Final Industry Rules

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The Rhode Island Cannabis Control Commission (CCC) voted on Friday to approve final regulations for the state’s medical and adult-use cannabis industries. Officials must submit the regulations next to the Secretary of State’s Office, and the rules will take effect on May 1, 2025. Under the new rules, the CCC will have full regulatory control over both medical and adult-use cannabis in Rhode Island.

Currently, the medical program is overseen by the Department of Business Regulation’s Office of Cannabis Regulation (OCR). That agency, however, will be converted into the new Cannabis Office, which will “oversee the day-to-day operations of the cannabis industry in Rhode Island,” according to a CCC press release.

Officials said feedback from 381 public comments helped inform their choices for the final regulations, which cover everything cannabis industry-related, including:

  • Licensing
  • Cultivation, including for medical and personal purposes
  • Business operations
  • Social equity provisions
  • Enforcement

“These finalized regulations reflect my administration’s commitment to ensuring that cannabis oversight in Rhode Island is fair, transparent and rooted in safety. I’m grateful to the commission members, stakeholders and industry leaders whose collaboration helped shape a strong, thoughtful regulatory framework for our state.” — Gov. Dan McKee, in a statement

CCC Chair Kim Ahern said the new rules “represent our collective commitment to regulate our growing cannabis industry in a way that is safe, transparent, and equitable.

“Through extensive public feedback, we’ve ensured that these regulations prioritize safety, industry compliance and the voices of communities that have been historically harmed by cannabis prohibition.”

Rhode Island’s adult-use cannabis industry launched in late 2022, and during the first year of legal sales, licensed operators in the state sold over $100 million worth of cannabis.

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California Officials Say Over $316M of Illicit Cannabis Seized Since January

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The office of California Gov. Gavin Newsom (D) announced last week that since January, the governor’s Unified Cannabis Enforcement Task Force (UCETF), the Department of Fish & Wildlife (DFW), and the Department of Cannabis Control (DCC) have collectively seized over $316 million in illicit cannabis products.

“This task force continues to make impressive progress disrupting illegal cannabis operators and their supply chain. UCETF’s accomplishments demonstrate the dedication of all agencies involved in the taskforce.” — Nathaniel Arnold, DFW Law Enforcement Division Chief, in a press release

The first-quarter cannabis seizures from this year suggest that California’s enforcement actions will outpace last year’s results after task force agents reported confiscating $534 million throughout the whole year.

The estimated first-quarter cannabis seizures this year in California included:

  • 212,681 eradicated cannabis plants
  • 120,307 pounds of unlicensed cannabis seized
  • 35 firearms seized
  • $474,462 seized

Officials also served 99 warrants related to illicit cannabis activity during the same time frame, and 29 arrests were made.

Beyond the representatives from DFW and DCC, other agencies looped into the governor’s cannabis enforcement actions under UCETF have included the California State Parks, the California Department of Pesticide Regulation, the California Department of Tax and Fee Administration, the California Air National Guard, and various local police agencies.

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Lawsuit Accuses Metrc of Conspiring With Regulators to Ignore Product Diversion

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A new federal lawsuit is rocking the US legal cannabis industry with allegations that California state regulators and their exclusive track-and-trace software partner, Metrc, knowingly enabled the illicit market to thrive—while continuing to collect taxes from diverted product. The suit was first reported by Maine Wire.

Filed in Oregon by former Metrc executive Marcus Estes, the whistleblower complaint accuses the California Department of Cannabis Control (DCC) of conspiring with Metrc to overlook illegal sales, including interstate commerce, through licensed “burner distributors.” Estes claims Metrc ignored irregularities in its data and failed to fulfill its contractual obligation to flag suspicious activity—actions that allegedly allowed a “vast illegal marketplace” to flourish under the DCC’s watch.

Metrc, which holds exclusive cannabis tracking contracts in over 20 states, renewed its agreement with California last year for up to $28.3 million annually. In a statement to MJBizDaily, a Metrc spokesperson called the claims “baseless” and attributed the suit to retaliation from a disgruntled former employee who was terminated for performance issues. “This lawsuit is just a continuation of this former employee’s campaign of retaliation, and the falseness of these claims will be proven in court,” the statement read.

The suit lands amid broader scrutiny of the DCC’s leadership and oversight practices. Director Nicole Elliott, a longtime ally of Governor Gavin Newsom, has also come under fire for the agency’s response to California’s pesticide contamination crisis.

Estes’ claims echo long-running frustrations from licensed operators who argue that state regulators have allowed large-scale diversion to persist while burdening compliant businesses. Retail chain Catalyst Cannabis, which previously sued the DCC and rival Glass House Brands over alleged burner distro schemes, has its own legal battle scheduled for trial in October. Catalyst’s suit was reinstated last year when judges found that the DCC’s contract performance with Metrc was “openly in dispute.”

While Estes seeks reinstatement and damages, the lawsuit raises new questions about the integrity of California’s cannabis oversight and the accountability of the software providers trusted to enforce compliance in state-legal markets.

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600 Pounds of Cannabis Stolen from Colorado State Patrol Lockup

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The Colorado State Patrol (CSP) said that approximately 600 pounds of cannabis went missing early this month from a secured evidence trailer in Arapahoe County.

CSP said an evidence technician doing a property walkthrough on April 4 identified damage to one of the evidence parking lot’s locked gates, and that someone had broken into one of the trailers and stolen some 600 pounds of cannabis still stored inside of it. The trailer, along with its contents, had been seized during a recent “highway drug investigation,” officials said. The cannabis had been scheduled for destruction, but the haul was not associated with any current court cases.

Officials said in a press release that they filed a report with the Englewood Police Department, and that further investigation revealed “that the suspects first came to the site after dark on the evening of April 1 and used a power tool to remove a lock on the gate and a lock on the secured trailer.”

“Since this incident, the Colorado State Patrol completed an initial review that identified gaps in the evidence facility’s security processes. Security camera system checks and exterior property walkthroughs have been increased to identify security issues faster and ensure evidence integrity. A comprehensive internal investigation is now underway to determine if established protocols were violated.” — CSP statement, in a press release

CSP also requested information from the public on two vehicles believed to have been involved in the burglary: a light-colored 1999-2005 Chevrolet Silverado extended cab truck and a white 2007 Honda CR-V.

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Florida Senate Votes Unanimously to Restrict Hemp-Derived THC

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Lawmakers in the Florida Senate this week voted unanimously to approve a bill seeking to ban hemp-derived delta-8 THC products and heavily restrict delta-9 THC products, the Florida Phoenix reports.

SB 438 would limit the amount of delta-9 THC allowed in hemp-derived edible products to five milligrams per serving and 50 milligrams per container. THC-infused hemp beverages, however, would be capped at five milligrams per container and would only be allowed in retail locations that hold a liquor license.

The proposal also requires third-party testing of all THC-infused hemp products in the state, and the bill would ban public advertisements for hemp THC products and implement more substantial marketing restrictions in the name of protecting children from potential THC exposure.

State lawmakers approved a similar bill last year — also with unanimous Senate support — but Florida Gov. Ron DeSantis vetoed the proposal. The veto was a strategic choice by the governor, however, as many hemp industry stakeholders subsequently joined his fight against the cannabis legalization amendment, which failed to pass with just 56% voter support.

Florida state Sen. Tracie Davis (D), a co-sponsor for SB 438, acknowledged in her closing statements the bill’s similarity to last year’s proposal. “This was a bill that was voted,” she said, adding, “there’s not that much that’s different from last year’s bill,” according to the report.

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Michigan Cannabis Regulators Considering Vape Recycling Program

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Cannabis regulators in Michigan are proposing allowing the state’s cannabis businesses to collect and recycle used vape products, the Detroit Metro Times reports. Under the state Cannabis Regulatory Agency (CRA) proposal, state-licensed cannabis businesses could accept used vape cartridges for recycling as long as any “perceptible” concentrate is disposed of first.  

“A licensee may receive used vape cartridges and recycle the cartridges if the licensee disposes of perceptible marihuana waste inside the cartridges before recycling the cartridges.” — CRA proposal via the Metro Times 

CRA Executive Director Brian Hanna told the Metro Times that “The industry brought up protecting the planet and the viability of recycling” vape materials during the two years in which was constructing new rules. 

In February alone, more than $45 million in vape products were sold through Michigan’s adult-use cannabis market, many of which were disposable pens, the report says. 

The CRA is accepting comments on the proposal during a public hearing next month. 

Options for recycling vape products nationwide are slim. Some companies, such as Sauce and Fernway, have enacted recycling programs at their stores. In 2020, the Drug Enforcement Agency (DEA) announced that it would accept vape devices and cartridges for recycling during National Prescription Drug Take Back Day – as long as they do not contain lithium-ion batteries.  

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Class Action Lawsuit Contends Canopy Growth Made ‘False and Misleading’ Statements About Profit Margins

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A class action lawsuit was filed Tuesday against Canopy Growth Corporation alleging the company “made materially false and misleading statements regarding Canopy’s business, operations, and prospects” related to its Claybourne pre-rolls and Storz & Bickel vaporizer brand. 

In a press release, Pomerantz LLP, which filed the lawsuit, contends Canopy’s financial statements around the Claybourne product launch, and that the company failed to disclose it had “incurred significant costs producing Claybourne pre-rolled joints in connection with the Claybourne product launch in Canada” and that indirect costs associated with the Storz & Bickel devices “were likely to have a significant negative impact on the Company’s gross margins and overall financial results.”  

“…Accordingly, Defendants had overstated the efficacy of Canopy’s cost reduction measures and the health of its gross margins while downplaying issues with the same; and as a result, Defendants’ public statements were materially false and misleading at all relevant times.” — Pomerantz LLP, in a press release  

The law firm points to a February 7 press release from Canopy announcing its financial results for the third quarter of its fiscal year 2025 wherein it reported that its “gross margin decreased by 400 basis points to 32%” in the quarter compared to the same quarter the year prior “primarily due to the incremental costs related to the Claybourne infused pre-roll launch in Canada, and an increase in indirect costs of Storz & Bickel vaporizer devices.” The lawsuit argues “these factors contributed to Canopy reporting a wider-than-anticipated Q3 2025 loss of C$1.11 per share compared to the C$0.48 per share loss estimated by analysts.” 

That same day, during a conference call with investors, Canopy Chief Financial Officer Judy Hong, who is named as a defendant in the lawsuit, indicated that the Claybourne product launch costs were “primarily attributable to [the] higher initial cost to produce Claybourne” products and  that the “indirect costs” related to Storz & Bickel devices were attributable to shipping costs, the law firm said in the press release. The news caused Canopy’s common share price to fall 27.34% – or $0.76 per share to close at $2.02 per share on February 7. 

During the quarter, Canopy allegedly touted the positive impact that the products were having on its margins, despite the gross profit margin decreases.    

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Maryland to Automatically Shield Criminal Records Associated with Low-Level Cannabis Convictions

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Maryland Gov. Wes Moore (D) on Monday signed into law a bill requiring state officials to automatically shield criminal records associated with low-level cannabis convictions from public view. Under the law, the Maryland Judiciary Case Search database may no longer “in any way refer to the existence of records of a charge of possession of cannabis in a case with electronic records if the charge resulted in a conviction that was later pardoned by the Governor.”  

Last year, Moore, pardoned 175,000 cannabis convictions, affecting about 100,000 individuals. Pardons forgive past crimes but neither expunge them nor shield them from public view.  

In a statement following the bill’s passage, NORML’s Deputy Director Paul Armentano noted that “Hundreds of thousands of Americans unduly carry the burden and stigma of a past conviction for behavior that most Americans, and a growing number of states, no longer consider to be a crime.”   

“Our sense of justice and our principles of fairness demand that elected officials and the courts move swiftly to right the past wrongs of cannabis prohibition and criminalization,” — Armentano in a statement 

According to publicly available data compiled by NORML, states and localities have issued over 350,000 cannabis-related pardons and more than 2 million cannabis-related expungements since 2018. 

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Saphira Galoob & Ed Conklin: Merging Power to Move Cannabis Policy

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When it comes to moving federal cannabis policy forward, progress requires coordination, persistence, and strategic advocacy. In this episode of The Ganjapreneur Podcast, Edward Conklin, Executive Director of the U.S. Cannabis Council, and Saphira Galoob, Executive Director of the National Cannabis Roundtable — join host TG Branfalt to discuss the historic merger of their organizations into the U.S. Cannabis Roundtable.

This conversation dives into what commercial entities are doing to lobby Congress for meaningful reform, including the uphill battle to pass safe banking legislation, the real implications of cannabis rescheduling to Schedule III, and the importance of building trust with lawmakers. Galoob and Conklin also share insider perspectives on why some legislation stalls, how policy change actually happens in D.C., and what entrepreneurs can do to get involved at the local and national levels.

Listen below or wherever you get your podcasts, or scroll down for the full transcript!


Listen to the episode:


Read the full transcript:

Editor’s note: this transcript was generated automatically and may contain errors.

TG Branfalt:

Hey there, I’m your host, TG Branfalt, and this is the Ganjapreneur.com podcast where we try to bring you actionable information and normalized cannabis through the stories of ganjapreneurs, activists and industry stakeholders. Today I’m joined by Edward Conklin. He’s the executive director of the US Cannabis Council and Saphira Galoob, executive Director of the National Cannabis Roundtable. The USC and NCR announced plans to combine their organizations to create the US Cannabis Roundtable. How are we doing this afternoon, folks? We’re great.

Ed Conklin:

Excellent. Thanks for having us.

Saphira Galoob:

Thanks for having us on. Tim.

TG Branfalt:

Really excited to talk shop and in this case, public policy. As most of my listeners know, I’m a bit of a public policy nerd, and so these are some of my favorite conversations to have. But before we get into that, Edward and Sphera, thank you for being here. Tell me about yourself and how you ended up in this part of the cannabis industry.

Saphira Galoob:

Ed, I’ll let you go first.

Ed Conklin:

Ladies first,

Saphira Galoob:

Please. Well, if you insist, so Tim, I’ve been doing this work specifically focused on federal advocacy work in the cannabis space since November 7th, 2017. And when I came into the space federally, it was the year I remember it because I’m from Oklahoma and it was the year that Oklahoma legalized. And that year, seven states actually came online and I remember doing an analysis, there were two lobbyists at the time in the federal walking the halls of Congress. And I assessed that there were at that point 113 Republican congressional offices that now had legal cannabis in their state. And so before I even started my business, I just started making meetings with these offices and visited 83 offices and five of those Republican offices had ever even heard that cannabis was an issue. So given the trajectory of states passing legalization movements and the number of congressional offices that now had constituents who live in states with legal cannabis and the fact that there were two lobbyists on Capitol Hill, I knew there was an opportunity to be had. And so I launched my career at that point.

TG Branfalt:

How did you first get those meetings? It is not really every day that someone just walks in.

Saphira Galoob:

Well, I am a lawyer and a lobbyist by career. I had a 25 year career in DC and had done a pretty decent amount of lobbying in other areas, and so I knew the drill. So a lot of times when you’re starting a new business, and I’m an entrepreneur at heart, I haven’t had a job working for anybody since 2006. So you just basically start as if you’re already successful and you make a meeting, you make a meeting request. These offices, particularly in an issue that is a bit unknown, they’ll take a meeting even if it’s 15 minute phone meeting. So it is more accessible than people understand, but it requires more work than people appreciate.

TG Branfalt:

So how about you, ed? How did you end up in the cannabis space?

Ed Conklin:

A good question. I used to work for McDonald’s. I worked for a clown, so in the hamburger side and did government relations there for 20 some plus years and retired and actually got a phone call from Joe Ardi at CAF and asked me to come over work for him, and I decided to start that route there. So I was used to lobbying state, federal, international at the time period, but just like sfia when my first trip to dc It’s interesting, and she is absolutely right how she approached it and she was fearless at the time, I got to tell you. So was fearless on this stuff. I started fumbling around in DC with some friends and lobbyists going to these meetings, and a lot of these offices wouldn’t even take your meeting when you talked about cannabis. I mean, there was a long time ago when they’re like, thanks, but no thanks. Prefer not to meet on this until it’s normalized or whatever word you want to use there. But now compared to leap four today, you can go in every office and Sophia is absolutely right. We did a lot of meetings, a lot of discussions, and a lot of talks. So started off small and grew into where we’re at today. So it’s a wonderful industry, some great people to work with, some great entrepreneurs and couldn’t have more fun.

TG Branfalt:

Can one or both of you describe to me sort of the difference now, the actual difference now than when you first started lobbying these lawmakers on the cannabis issue?

Saphira Galoob:

We probably have similar stories. I’ll start and let Ed fill in. So I think depending on the point of reference of the lawmaker, their relationship with the issue is either connected to a criminal justice, social justice, economic justice perspective, or it is a freedom perspective, a state’s rights perspective. Many of these lawmakers, in addition to having those two perspectives also have personal use cases in their families or personal use cases with constituents whose children or family members, sick family members were impacted by cannabis. And so one of the unique things about our industry, it’s not unique to our industry, but I think it is unique about our industry, is that a lawmaker’s relationship with our issue and our policy can really come from a lot of different vantage points and we can leverage those perspectives in a really important and impactful way if we do so strategically,

Ed Conklin:

I think absolutely right. And so what I found out and my first member meeting in the US Senate, I can’t tell you the person’s name just because of the conversation, but it was funny because just like Shafi said, she got as supportive of medical cannabis because her neighbor’s daughter had epilepsy and her neighbor’s daughter and the mother would always talk about how the seizures would go away when they had medical cannabis and the problem of how they got to that point and how they had to secure it. But I think every member has a different perspective, some of that stuff. And I think a fair and ideal with day in day out is old tapes and it’s a war on drugs crowd. They just haven’t understand the difference now, and they have their opinion, even if the state goes legal, I mean even the state goes legal, you still have a lot of folks out there who are just, they have their opinions and that’s what we work on day in, day out, not only in DC but back in their districts, trying to make sure that we educate folks about what cannabis is and isn’t and try to get them to understand the benefits of it.

TG Branfalt:

Do you find that members of Congress are more open to having the medical cannabis use conversation than the adult use conversation

Saphira Galoob:

Ubiquitously? Yes. And I will also say it doesn’t even matter on, there are some folks for whom economic justice, social justice, criminal justice is their motivation, but even their most progressive members, I mean you have, and I say a handful, I mean you can argue about what a handful means in Washington, but adult use cannabis comes with additional complications for lawmakers that cause them to have some vulnerability. I mean, just look what happened with the opioid crisis when Congress realized the misstep and the colossus step where with tobacco, and we’ve seen the numbers on alcohol, both abuse and deaths and members of Congress, whether you agree or disagree with it, their perspective or their policy position, they take public safety, consumer safety, patient safety very seriously. And so having adult use cannabis for many of them is one, they’re not quite there yet. Two, they’re concerned about the lack of data to be able to put the guardrails on for product safety, consumer safety, driving safety, all of the elements of safety elements. But medical cannabis is a much more ubiquitously accepted concept.

Ed Conklin:

Agree. Yeah. I think the number one thing you’ll find between Sophia and I promote is consumer safety, consumer safety, consumer safety. And that ranges from testing the verification to age gating to making sure this product, it isn’t toxin. We got to make sure it doesn’t fall in the hands of minors. And that’s something we always have to look out for. So when you’re talking to senators, staff, congressmen, staff or regulators, that’s a lot of their focus is consumer safety, consumer safety, and they want the testing and the loop we’re stuck in the feedback loop is right now with schedule one drug, it’s hard to do a lot of testing because a lot of these universities can’t touch the actual drug themselves. So it’s a lot of subjective type of tests. So that’s why we’re encouraged on this. President’s push for schedule three and we’re hoping to get there so we can get a lot of research done. And I think Tim, that will change the tone and tenor in DC on lobbying too. There’s a lot of elected officials, they’ll tell you, it’s a federal one right now, come back to see me when it’s not a federal one, schedule one drug. It’ll make it a lot easier to approach these offices when it’s schedule three.

TG Branfalt:

Do either of you hear lawmakers talking about the sort of international treaty issue at all? Because we know that many nations have signed this international, these treaties to prevent legalization of drugs. Obviously Canada in 2018 went ahead with it. And so also in addition to that, do they talk about the success that Canada’s national federal legalization has been, or do they even think about it?

Saphira Galoob:

I would say that’s not on the majority of their radars. I mean, you may go into an office that’s very, very sophisticated, but they’re more concerned with, I’m going to use the word more cursory, but things that lie a little bit more on the surface. We have our eye on that. In fact, I was just in Zurich having the conversation about the treaties this past week because it is an issue with the 30 plus countries around the world that have advanced legalization. Switzerland actually was the host country. They’re actually advancing adult use cannabis pilot program. And Switzerland’s a pretty conservative place. France is going to have a very robust system starting in January. Of course we’ve seen news on Germany that’s got a whole issue around its impending change in government. But I do think the momentum around the world is going to impact the US government’s perspective, particularly this administration’s perspective on what our status and stature is on this plant.

TG Branfalt:

Before we talk a bit more about some of these federal policy issues, why did your organizations decide to combine your efforts?

Saphira Galoob:

Ed, do you want to take this one?

Ed Conklin:

I think this is, it’s a great fit, right? Fair’s organization, NCI does a wonderful job top notch first in class USCC, same exact thing. And by coming together you bring all the best of the best together. I mean, you’re going to have a really very dynamic lobbying group. You’ve got great communications, we’ve got great membership, we’ve got great board members and allows us to do a lot more together. It really is one plus one equals three or four. I mean it’s going to be a terrific addition and it allows for better coordination with all our member companies. A lot of ’em shared actually are members of both groups, but there’s a bunch that weren’t. So I think it’s a dynamic change. And with this change, we’re getting a lot of inquiries. We’re getting a lot of new members, so it’s great to have more help to help us in dc but I think it makes all the sense in the world, and I couldn’t be more excited.

Saphira Galoob:

And Ed talks about the importance of combining great teams. I also remind listeners there are 535 plus members of Congress. There are 535 members of Congress. Depending on people’s, the number can change if somebody is taking an administrative position they haven’t building yet. But just think about the number 5 35 in both chambers. That’s a lot of membership to meet with on the Hill. And last year, I think NCR, well the number I need to refresh my recollection specifically, but we did like 434 meetings.

But imagine if knowing that you need to meet, which with each office eight to 10 times, I mean just in the course, you’re obviously not going to meet with each one, but just imagine the amount of, we call it shoe leather lobbying that needs to be done, the number of meetings that need to happen. It is so, I mean it’s enjoyably onerous, but it is a lot of effort to establishing the relationship, curating the relationship, developing the relationship, advancing a relationship, coordinating relationships, and it’s all very much human to human. And so being able to join these two lobbying efforts into one allows us to cover more ground, gets deeper and advance momentum in a way that we were, I don’t think we were able to do as effectively when we were individual organizations.

Ed Conklin:

Well said. It does, Tim. It takes a ton of work to meet these offices. It really does. It is not because you’re trying to meet 535, I mean, let’s think all those people in times like Sophia set of, but there’s a lot of staff there and you’re doing a lot of education now. Some of those officers, they walk in, there’re high fiving, Hey, we’re with you. Let’s go. Let’s charge other ones. It takes a lot of work and you got to build trust and the US Senate, you still need 60 to pass something. So it’s going to take a lot no matter who’s in charge of the US Senate and our job is to get us 60 votes.

TG Branfalt:

Let me ask you this. Why is something as, how do I put this logical as the Safe Banking Act that’s been supported by members from both parties. It was not passed when there was Democrats in charge. Why can’t they get something this simple done right? I mean, this isn’t a huge overhaul of policy. This is allowing people to not have to operate in cash. And if they’re worried about the safety factor, then wouldn’t that take, I mean what 70% of the risk out? I mean, what prevents this from happening?

Saphira Galoob:

So I’m so glad you asked that question and the way you asked that question is a big compliment to you. I will not infrequently have to say to a host, you’re asking me the wrong question, but in this case, I’m telling you, you’re asking the perfect question.

TG Branfalt:

Thank you.

Saphira Galoob:

And I understand why listeners are both frustrated and furious about the seemingly stalling of this legislation. The first thing I will share with everyone as a reminder is it takes an average of 10 years to get anything through Congress. And that is simple things. So yes, safe banking has a widespread support and has passed out of the house many, many times, eight times now out of Senate banking. But the reality of the way we’re going to get this bill into a law is that we cannot go on our own the way that the calendar works in the Senate and the amount of floor time available for these members to do their prioritized work, there’s no way we can do it alone. And if anybody ever wants to get really in the weeds and talk about why that’s the case, we can do it, but just take my word for it.

We have to ride on another piece of legislation. So then the question becomes what are we going to ride on? And if you look at the number of bills that actually pass through Congress, it is very, very small, particularly those that share some sort of jurisdictional oversight because we don’t want to be in another committee of jurisdiction. We only want to be in the senate banking or financial services. So we’ve got a super careful, and there are even fewer number of bills that pass on that and those committees. And so we are limited on the rides that we can catch. Imagine being in the desert and there’s only one car coming once or twice a year. How are you going to get on that car? And so that then depends on the politics and the policy of that car. And so we’ve been working on a banking strategy, we’ve been working on a crypto strategy, we’ve been working on an access to capital strategy. Every strategy you can imagine, we are activating and operating and we are getting closer. I realize that this is not darts or hand grenades or mini golf, actually, I don’t even know if mini golf counts, but the win is the win. And anything less than the win is not the win, but we are getting closer to the win.

Ed Conklin:

Yeah, the only thing I’d add on there, Tim, is it was a good question is there’s still people in leadership in the Senate up until last year and even this session that aren’t fully on board yet. And once again, I said it is kind of what goes first. And there’s a lot of people that say, well, the arguments against safe banking, which are few and far between. I mean it is really not a vote for campus. It’s vote for safety. That’s all this is really about is voting for safety because unfortunately people are getting robbed. People are getting killed in dispensaries. It’s a horrible situation and nobody wants that. But when you break it down, there are still a lot of people in the Senate and others who are not broke cannabis and some of those folks are in leadership positions. And it takes a lot of discussion to get through that.

And as Sofia said, is there’s two cars coming and you’re trying to get everybody lined up. We had last session, and I’ll go with 67, 68 votes on safe banking, but we just couldn’t get Leader Schumer and minority leader McConnell to agree on what to attach it to and go through the process. So it’s just a frustrating part and it’s just part of the job. We deal with it all the time. And it can be very frustrating for CEOs and people in charge. We get that. We understand that, but it’s something we’re dealing with. And I think with the merger happening here and all the resources that we have now together in the focus that it changes everything for us. And I feel real positive where we’re at. Of course, I feel positive every time because in this industry you got to be positive because if you’re a negative person, you’re not going to last this industry and you won’t do it. But

Saphira Galoob:

Generally,

Tim, I want to bring up something really important that Ed said, and particularly for listeners, because again, we’re talking about the logic, why can’t it get through? So one of the things that people on the outside of DC don’t, and when I say it failed to realize I’m not suggesting, I mean, I don’t speak languages in other people’s industry and I don’t expect ’em to speak dc, but messenger matters. So someone will hear of an individual on one side of the aisle, one side of the chambers, senator of the house, this person loves us and they’re going forward for us. And I’d be like, well, that doesn’t really matter because that person one doesn’t sit on the right committee. Two is not in the majority, three doesn’t have juice in their caucus, and four doesn’t really have a negotiating stature to actually be able to get us momentum.

And so frequently I will go be at odds with folks in the industry about who should introduce the bill, not what the bill is, but who should introduce. And so we need more of the right champions. We have a lot of support, but we don’t have enough support with people with a lot of juice and we’re developing. But it takes a really long time. And when I say a really long time, I’m not talking about months, I’m talking about years. It took us four years to get Senator Danes to agree to step into the banking. And it came through his admiration of the veterans issue and his relationship with Cory Gardner and Cory Gardner’s then exiting the Senate and him taking the mantle then and things going on in his state. But I can tell you, Steve Daines, Senator Daines stepped off committee and we absolutely would like to have another champion take the Safe Banking Act in the Senate.

And it’s very, very difficult. And the reason difficult is because for many of these senators, they don’t get any kind of push or any kind of improved support by supporting an issue, say thinking for example in their district. And for many of them, they actually risk being, I don’t use the word beaten up a little bit, but they actually risk losing support or having some challenges by leading on an issue that’s not super popular amongst their constituents. So it’s way more delicate than people outside of DC appreciate. We have a lot of money morning quarterbacking on what Eds and I do all day every day. And I would invite anybody to come in and see it real time. You would change your tune if you had to sing the song and walk the halls with us.

TG Branfalt:

I really do appreciate your candor on this because I think for a lot of people, the term lobbyist is a dirty word. And I think that this is sort of evidence of the tenacity of what you’re actually doing. I mean, I hate to say it’s almost a little thankless, but in this conversation

Saphira Galoob:

It’s completely thankless now. Thankless. It’s completely thankless. And Ed and I honestly, ed and I hasn’t had a lot of disagreements, but the one time we had a disagreement is he said, oh, say thanking that nothing has passed. So we failed. And I said, I refuse to accept that word failure. We may have not gone over the finish line, but I mark my success by progress made. And I do think there is that you actually charted, you actually charted the progress and you show the documentation of how close we get from year to year. I mean, I realized that the win is not the win until it’s the win. But you don’t get to the win until you do all the things that we’ve done and more. You just don’t get there.

Ed Conklin:

And while lobbyists might be a dirty word to sum, Tim, everybody’s a lobbyist. I’ve given this presentation to colleges as classes. How many times have you ever gotten pulled around a confidence speeding ticket? You ever try to lobby yourself out of that speeding ticket? Yeah, you have when you’re a kid, you wanted your allowance, you wanted a new iPhone. Yeah, you lobby or Yeah, we’re all lobbyists. I mean, we lobby for an industry, that’s what we do.

TG Branfalt:

Y’all go to dc so I don’t have to What expectations? Do you have any expectations for any policy reforms this session?

Saphira Galoob:

Yes, yes. That president is going meet the promises he made on the campaign trail. That is our expectation and that is what we are focusing on 100%.

Ed Conklin:

President Trump has come out in support of schedule three. He’s come out in support of safe banking, he’s come out in support of state rights and all those are critical. And this president keeps his promises. So both of us are in our trade groups. We’re working very hard to support him. It’s going to take time. I mean, I know you’re getting the same phone call as I, this should be done by now. He’s got other issues he’s dealing with. There’s a lot of other issues that he’ll get to this issue and we are doing all the right things. We’re doing the polling super packs, we are doing the fly-ins. We’ll do all the stuff that we do, but we’re going to work very hard to make sure we are there to support him with his promises.

TG Branfalt:

I mean, even with the nomination of RFK Junior as head of HHS, you think that this administration is better for cannabis than maybe the previous one.

Saphira Galoob:

I mean, holistically, if you look at the way this president has engaged with our issue both pragmatically and publicly, this president is actually much better for our industry, even in a criminal justice perspective, the commitment that this president has shown towards clemencies and expungements to people who were incarcerated because of cannabis. I mean, we have more to show on the criminal justice side for people who have criminal justice decades in the system because of cannabis, more so than with Biden, because Biden did extend commutations, but not for people. I mean, I think there’s a handful, less than a handful for cannabis incarcerated people were incarcerated for cannabis. So the other thing is that this president made a commitment on the campaign trail very, very specifically towards two of the things, three of the things that are most important to most people in this industry. And we didn’t hear that level of diligence or dedication by then President Biden or president nominee vice president candidate Harris. So we are in a promises made, promises kept trajectory, and that is where we’re focused all day every day.

Ed Conklin:

And I think too, I think this president is showing you his cabinet and his people that he has direction fluence over are going to follow his lead. And when you think about schedule three, the key person there is the attorney general Pam Bondy. And we’ve been very open that she can go right to rule on schedule three. And so there’s a lot that she can do by, she doesn’t need everything else. I mean, she’s ready to go. And we’ve done a lot of work. We’ve had some great attorneys that have been working on this issue since the last administration initiated it. So 30,000 plus comments in and of that 90 some percent or I don’t know exactly percent, but it’s a huge percent is positive, right? So they’ve got everything they need to go forward. So as Sophia said, promises made, kept promises said, promises kept. So we’re going to keep going with that process and work it very hard.

TG Branfalt:

What do you hear from your members about the potential change to schedule three? I’ve spoken to some people in the industry who envision that that’s going to basically get rid of medical cannabis programs because it’s going to put cannabis in the hands of the HHS and the pharmaceutical companies. And what are you hearing from your members and what do you think that Schedule three would do to state industries?

Saphira Galoob:

So first of all, our members, whether they like it or not, they are very educated on what’s going on in DC because we just bombard them with really deep, deep policy. And this is where we’re headed, this is what we’re up against. So if you talk to our members, they really understand the difference. So let’s remind ourselves that moving cannabis from a schedule one to schedule three, that impacts whether or not something has medical utility and it impacts the intoxication affecting the addiction. So it is, we expect for there to be no change on state programs from a Scion perspective, Antonin Scalia, stripped scrutiny, those state programs are still not in compliance with federal law, even under a Schedule iii. Now I say that and I don’t think we’re going to have what I call the black helicopters descending. The state programs will still stay and be deferred to the federal government has long not just had a deference for state level cannabis programs, but a preference for it, both Democrat and Republican Congress in both Democrat and Republican administration.

So a change to schedule three, we do not believe disrupts state cannabis programs. We also believe that whether medical programs are successful in the state depend on the state. And we believe that a pharmaceutical company’s ability to get in is not going to be impacted by a change in Schedule three. It’s whether or not those pharmaceutical companies, either one want to follow a traditional pharma route that Epidiolex followed, or they want to purchase a license from an existing cannabis operator. So whether or not cannabis concedes to pharma likely has more to do with what cannabis decides than what Pharmac decides. And frankly, we are such small potatoes for them in terms of profitability and market share that we are of less interest than other areas where they can extend their investment. I didn’t know if you knew I had an opinion on that, but I’m glad you asked.

Ed Conklin:

I think when you think about what we talked about about the president, you get rescheduling done, which is the fairness outline with that we’ll do plus two 80 E, right? Take care. That will energize everybody. Everybody says it’s a big, big player. It’s not. It’s small, medium, large. Everybody’s going to benefit from that. No matter who you are in the sphere, 80% tax is not a good thing. I mean, you can’t survive on that. We need more regulations. We’re all for more regulations, safety, compliance, all that. We fully support that. You get safe banking done. That’s another key message point. Get them cash out of the system. Let’s get it through the financial system. Let’s make it safe in our dispensaries for not only our employees but our consumers. And then you get states rights and man, if you get capital access, get us on New York Stock Exchange. This whole industry is going to explode and it’s going to be great for everybody. Everybody will do a wonderful, have a wonderful time in this industry, and there’ll be a ton of investment pouring in, and then you’re going to have a real industry. I think it’s going to be fun to be there and watch it happen.

TG Branfalt:

Is there any legislation that’s been introduced this session that you guys are tracking and that could see some movement?

Saphira Galoob:

So the bills that you’re referring to are bills that we’ve seen in the past, and we’re working with those key bill champions. There is a sequencing and a timing for introducing bills. And so while we have not seen the introductions as early on in the Congress, as we have seen in prior congresses, one should not interpret that as negative one should interpret that as strategic.

Ed Conklin:

Very

TG Branfalt:

True. And then we’ve talked about the sort of banking access, the two a DE. You mentioned that as a combined organization, what is your sort of mission statement or messaging going to be sort of broadly speaking to the cannabis industry and stakeholders?

Saphira Galoob:

Do you want me to start with this one? And you can have, sure.

Yeah. Actually we’re interrupting each other a lot less, but we are still learning how to be good dance partners. One voice, one vision, one industry. That’s what a combined effort between USCC and NCR gives us. I know there are folks that are not familiar with either of our individual organizations and not familiar with our combined organizations, but we invite them to get to know us. Washington is a curious place. You want the best players on the field in Washington, even if you don’t like them personally or you don’t respect them politically, you want the best players on the field. And this combined entity gives you an effort that looks at the smallest players to the largest, to folks that are operating in one to dispensary or multi-state that are ancillary businesses or are vertically integrated. This organization represents that collective one voice, one vision, one industry.

Ed Conklin:

And if you’re not a member, come join us. Call us phe. Call me. We would love to have you part of the team. We need everybody, Tim, we need everybody’s help on this thing. There is not enough folks involved. And we would encourage everybody to pick up those phones, dial our phone numbers or send us an email. We’d love to hear from you.

TG Branfalt:

Given both of your combined experience lobbying, would you describe this as the most difficult sort of issue that you’ve gone to Washington for?

Ed Conklin:

Oh

Saphira Galoob:

Yeah, cheeseburger. Are hamburgers and cheeseburgers easier than cannabis?

Ed Conklin:

This is a crazy, I mean, it is so much fun to be involved. I mean, you have entrepreneurs, you got businesses, you got people who you got the illicit market, which is just absolutely nuts, right? I mean the illicit market, I mean, who knows what you’re getting, right? So all I can tell you is there’s a lot of this confusion in DC that triggers all this thing. And you have the state markets and you have the hemp industry out there. So you got all these things out there working. And what’s going to help us out immensely is the fact Asir said one voice. It is time to align. We have to align behind few issues. We can’t boil the ocean. We got to align behind few issues, and we got to all speak the same voice, same message, and we’ll deliver a victory. And that’s what we’re going to do.

TG Branfalt:

Of all of the things that we’ve sort of discussed here, what is sort of the top of going to be the priority pile for you? Is it going to be two 80 e? Is it going to be the rescheduling issue? What’s going to rise to the top here?

Saphira Galoob:

Yeah, so I definitely want to ride on Ed’s comment that we got to get really focused as well as yours about what’s the top, rather than choosing, we are going to only do this or only do that. We have enough bandwidth and there’s enough momentum on rescheduling and on access to all financial services. And then really building that base work for the state’s rights to actually do that. There’s that three-legged stool there. And I will say for folks who want everyone to have everything or no one gets anything approached, that kind of all or nothing approach, there is little to nothing in DC where that actually happens. And so while that is that altruism is really notable and inspiring, it’s just not pragmatic. And so if we can achieve the schedule three, that work has been in play, in addition to the 90,000 comments, remember we had a 252 page outstanding recommendation. We had an office of legal counsel memo saying, we concur with that recommendation and we have the Department of Justice recommend a schedule three. So we are winning, we’re winning, we’re winning. We just got stalled in a very discreet issue in litigation. And in order to restart that, we’ve got some really impactful recommendations for newly stated AG Bondi. But getting schedule three, addressing access to financial services is what this industry demands and deserves immediately.

TG Branfalt:

Finally, what advice would you have for entrepreneurs who might want to get involved on a policy level?

Ed Conklin:

Call us, call us, us, email us. I think everybody thinks, from my perspective, and I can only speak what I see, everybody thinks about the dispensary owners. I want to be dispensary owner, but there’s so many other facets. This industry, it’s out there that is available for entrepreneurs to get involved with. So between s Sophia and myself, and between our boards and between all our members, if somebody has an interest to get involved or if they are involved, they want to learn more, contact us. We have a lot of contacts and put you in contact with and help you out. It is one thing that’s great about the business industry. There’s a lot of sharing and caring going on. And Tim, like you and I were talking about before with this snow up there and you helping out your neighbors, that’s what this industry does a really good job at. I mean, there’s a lot of sharing. There’s a lot of people putting their shoulders against the wheel and pushing hard to get this thing moving along. And it’s fun to watch and it’s fun to watch success and there’s some failures happening, but every industry has a little failure in startup and stops. But there’s a lot of great successes out there and a lot of great stories.

Saphira Galoob:

And I would say there are some folks for whom engaging in Washington is just really hard right now for other reasons. And if that’s the case, my assignment to you is as follows, one, do you know who your member of Congress is? You should find that out. Two, sharing what your congress person, what these priorities are, access to safe banking. And they can’t do a whole lot on the scheduling assuring states rights or whatever your point of reference is, are you involved in your local politics? Are you involved with your chamber of commerce? Are you sponsoring a little league team so much about familiarity and reducing the stigma? Do you have a relationship with your religious community so that they know what you’re doing for the community? How are you giving back to your community outside of cannabis? That is the ecosystem of trust. That is the ecosystem of credibility. That is the ecosystem of consistency that we need to be able to bring to Washington. And so I would just invite anybody who is concerned about this to get involved somehow some way someplace.

Ed Conklin:

I can guarantee you what Sophia said is a hundred percent true. And another thing I used to give this class, I could tell you about congressional members, not Senate, but congressional members. They have all these meetings back in the district all the time. It’s breakfasts, it’s lunches, it’s dinners, meetings, just attend one and go up and introduce yourself. You’re going to find out they don’t have a third eye. They wanted to get to know you. They want your vote, first of all, and you probably did vote for ’em. Or if you didn’t, it’s still fine. And just have a conversation with ’em and ask for a follow-up meeting and they’ll be happy to do it. I mean, these folks who are elected are people, people, people persons, and they want to talk to people. And they’re a lot of great elected officials out there in this us, and they’re fun to be with. They have great stories. I can guarantee you, you will have a connection with them because they know a lot of people in your town already. Once you start talking to ’em, you’re going to have all these connections. The next thing you know, you’re off to the races, so please reach out to ’em

TG Branfalt:

If you could peer into a crystal ball. I mean, obviously you had mentioned Shafi that we are in this sort of litigation issue with getting this hearing on the schedule three re-designation Vegas odds that we’ll get that hearing this year.

Saphira Galoob:

Well, I don’t want to, first of all, I’m not a betting person. I have to go to Vegas for MJ Bs, but I’ve never placed a bet myself, so I’m not going to bet. But what I’m going to say is there’s been a significant amount of progress made in the rescheduling and the process for rescheduling that’s statutorily designated. And there are a lot of pathways towards success. And I don’t think it is mean. This is where I’m not saying it’s not a fair question for me or a fair question for the process because there are a lot of different ways to get to success and we are leaving no stem unturned to get to that success.

Ed Conklin:

I would say, say you don’t need a hearing, I’d say the ag could go right to rule three. If she go right to rule pronounce, it’s going to schedule three and then it’s going to end up in court anyway. Right? There’s opposition to everything. There’s always people pro and there’s always people opposite and somebody’s going to complain about, but there is law, there is rules, and the attorney general, Pam Bondy has the ability to go to schedule three. Well,

TG Branfalt:

I hope we could avoid a drawn out legal process here to advance this finally. It’s been a long time since I think, and I think you would obviously agree that federal reform are desperately, desperately, desperately long overdue on this issue. So where can people find out more about your organizations and soon your combined organizations?

Saphira Galoob:

We are still working on our new website, but we do have an email address and it’s funny Ed, because it’s info@uscr.org. Am I saying that correct?

Ed Conklin:

There is that, or you can just go, mine’s ed@uscc.org. ed@uscc.org and ra, you got yours?

Saphira Galoob:

Yep, ra. I have my lobbying firm hat ra@theliaisongroup.org. But what we can do, Tim is in the show notes, we can put some contact information so folks don’t have to be writing madly. If they’d like to get in touch,

TG Branfalt:

We can certainly, certainly do that. Yep. Thank you both so much for taking the time out of your busy schedules trying to save us from dc. I really appreciate it. This has been a lot of fun and I hope that we can touch base and the next time we do that, there’s been some progress made. Right?

Saphira Galoob:

We look forward to it.

Ed Conklin:

We look forward to it, and thanks for having us on.

TG Branfalt:

But is Edward Conklin, executive director of the US Cannabis Council and s Galu, executive Director of National Cannabis Roundtable. The USCC and NCR last month announced they are going to combine other organizations to create the US Cannabis Roundtable. You can find more episodes of the entrepreneur.com podcast in the podcast section of entrepreneur.com or wherever you get your podcasts. On the entrepreneur.com website, you’ll find the latest cannabis news and cannabis jobs updated daily along with transcripts of this podcast. You can also download the entrepreneur.com app in iTunes and Google Play. This episode was engineered by Wayward Sound Studio. I’ve been your host, TG Branfalt.

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Hemp Supporters Crowd Texas State Capitol to Protest Proposed THC Ban

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Hundreds of supporters of the Texas hemp industry crowded the State Capitol Building on Monday to denounce efforts in the Legislature to heavily restrict — or even ban — hemp-derived THC products, KVUE reports.

Hemp products containing 0.3% THC or less have been legal in Texas since 2019, and in that time, the industry has bloomed into a multi-billion-dollar industry supporting tens of thousands of jobs in the state.

The majority of Monday’s testimony was opposing the restrictions, the report said.

The bills specifically target THC, the primary psychoactive ingredient in cannabis:

  • Senate Bill 3, which was passed by the Senate last month, seeks to ban any and all forms of THC, and
  • House Bill 28 would allow for low-potency products but implement serving size restrictions.

Neither of the proposals would directly impact the state’s medical cannabis industry, and they would both tighten advertising restrictions and implement stricter testing requirements. Additionally, the bills would both allow for the sale of other hemp-derived cannabinoids, including CBD and CBG products, the report said.

Texas Lt. Gov. Dan Patrick (R) last year said that banning hemp-derived THC in the state would be one of his top legislative priorities for the current session. Meanwhile, a poll earlier this year found that 62% of Texas residents support legalizing adult-use cannabis in the state.

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New York Investigating Product Inversion Involving Out-of-State Cannabis Brands

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The New York Office of Cannabis Management (OCM) is investigating several large cannabis brands for potential inversion of out-of-state cannabis products into New York’s regulated cannabis market, the New York Times reports. Cannabis inversion is when unapproved products get diverted into a state’s adult-use market, circumventing local cannabis licensing and quality control rules.

The Times cited unnamed sources claiming at least six cannabis brands are being investigated for inversion, including large multistate operators like Stiiizy, Grön, and Mfused.

OCM officials on Monday conducted surprise audits of Omnium Canna as part of its investigation launched in February, the report said, into whether the licensed cannabis processor might be manufacturing cannabis products using out-of-state cannabis. If Omnium — which manufactures products for the brands listed in the report — is found to have improperly obtained its source material, the company’s license could be forfeit.

Stiiizy CEO James Kim said in the report, “At no point have we sourced cannabis from out of state or engaged in practices that violate New York’s cannabis regulations.”

Grön spokesperson Drew Tybus said the Oregon-based edibles company is not being investigated. “We are not under investigation in any state in which we operate or where our products are manufactured and sold, and refute any claims or references to the contrary,” he said.

Mfused, another popular multistate cannabis brand named in the report, did not provide a comment for the Times but later told MJBizDaily that the allegations were untrue and that the company is not under investigation.

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Hawaii Lawmakers Trying to Shut Down ‘Illegal Dispensaries’ Selling Intoxicating Hemp Products

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Hawaii lawmakers are trying to shut down shops selling intoxicating hemp-derived products, SF Gate reports. In a resolution introduced in the state House of Representatives, lawmakers say there are “allegedly over eighty-four illegal dispensary operators” with the number increasing “exponentially.”  

“…the Department of Health, Department of the Attorney General, and Department of Law Enforcement are urged to coordinate an enforcement plan to address the lack of enforceable compliance, rules, and regulations regarding the surge of illegal dispensary operators that sell cannabis labeled as hemp.” — Hawaii House Resolution 141  

Two bills recently introduced in the Hawaii Senate to reform the state medical cannabis program include language to crack down on retailers selling high-THC hemp products. Both proposals were given passage recommendations by the Senate Judiciary and Ways and Means Committee last week.  

The resolution notes that the “illegal dispensaries” are located around tourist centers, such as airports, near state-approved medical cannabis dispensaries, and near schools and playgrounds – locations that are usually provided a buffer zone in state-approved adult-use laws.   

“…Illegal dispensaries offer immediate access to cannabis without age gating or the need for a medical cannabis card; both online and delivery services,” the resolution states, “and products potentially contaminated with pesticides, solvents, synthetic cannabinoids, and other harmful substances.”   

In February, two House committees approved adult-use legislation; however, the bill has not been considered by the full chamber.   

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Michigan Supreme Court: Cannabis Odor Alone is Insufficient Probable Cause for Warrantless Vehicle Search

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The Michigan Supreme Court ruled last week that, in the wake of adult-use cannabis legalization in the state, the odor of cannabis alone is insufficient probable cause for police to search a vehicle, the Detroit Free Press reports. The 5-1 decision overturned a 25-year-old legal precedent.

Writing for the majority, Justice Megan Cavanagh said that “The appropriate rule is that the smell of marijuana is one factor that may play a role in the probable-cause determination.”

“A warrantless search must be based on probable cause, and the smell of marijuana is insufficient to support probable cause.” — Cavanagh, in the majority opinion

The decision comes from a 2020 case during which police officers conducting compliance checks observed a vehicle parked on the side of the street and smelled the odor of burning cannabis. The officer approached the vehicle, and asked if the occupants were smoking marijuana, which they denied. The occupants were asked to get out of the car, at which time an officer noticed a handgun on the passenger seat. One person was arrested and charged with carrying a concealed weapon, being a felon in possession of a firearm, and possession of a firearm during the commission of a felony.

The Supreme Court decision found that the search was unconstitutional because the state’s adult-use law allows adults to possess and consume cannabis and that because the car was parked, no laws were being broken at the time of the search.

The decision did leave the door open for police to use the odor of cannabis in “developing probable cause concerning illegal activity.”

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Oklahoma Cannabis Advocates File Adult-Use Constitutional Amendment

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Cannabis advocates in Oklahoma have drafted a constitutional amendment to legalize cannabis for adults 21 and older, the Oklahoman reports. Oklahomans for Responsible Cannabis (ORCA) filed the proposal last week. If no legal challenge emerges, the campaign must collect at least 172,993 valid signatures from registered Oklahoma voters to get the question on ballots. 

The proposal would preserve the state’s existing medical cannabis framework and would exempt medical cannabis purchases from the proposed 10% excise tax on adult-use cannabis purchases. Current medical cannabis patients who retain their patient status would also no longer have to pay the current 7% tax on medical cannabis purchases. 

The draft includes protection for cannabis consumers for housing, healthcare, employment, public benefits, education, firearm possession, and financial services. It also includes language around impairment testing for drivers.

“The mere presence of THC metabolites in a person’s blood, urine, hair, hair follicle, or other body fluids or tissues carries no evidentiary weight with regards to current impairment or intoxication. No test which identifies the presence of THC metabolites in a person’s blood, urine, hair, hair follicle, or other body fluids or tissues shall be used as evidence of impairment or intoxication for the purposes of denying any form of healthcare, housing, employment, public assistance, license or licensed activity, public benefit, parental right, educational opportunity, or extracurricular activity.” — ORCA adult cannabis use petition draft 

In 2023, Oklahoma voters rejected a proposal to create an adult-use market in the state 62% to 38%. That proposal was sponsored by Yes on 802-Oklahomans for Sensible Marijuana Laws. 

ORCA Director Jed Green told the Oklahoman that “one of the fundamental differences” between Question 802 and Question 837 – the one backed by ORCA –  “is that SQ 820 would have created a duplicate licensing system that has demonstrably failed in multiple other states.” 

“[Oklahoma Medical Marijuana Authority] was already behind on licensure renewals, and there was no way OMMA could handle it,” he said, “or that business should be required to have two separate licenses, two sets of regulations and potentially two sets of storefronts to sell the same product.”    

If the proposal is put to voters and approved, cannabis sales could begin within 60 days after passing. 

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Florida Bill Would Waive Medical Cannabis Registration Fees for Veterans

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Lawmakers in the Florida House Health Professions & Programs Committee last week voted to advance a proposal to waive the annual $75 registration fee for medical cannabis patients who are veterans, Newsweek reports.

Introduced by Rep. Alex Andrade (R), the bill would also extend the certification period of medical cannabis patients for the program from one year to two years, so patients would need to get recertified for the program half as often. Additionally, while the $75 registration fee would be waived for veterans, they would still be required to pay for their certification for the program by a licensed doctor.

A previous version of the bill (HB 555) sought to add home cultivation to the program, expand the number of qualifying conditions, and allow patients with out-of-state medical cannabis IDs to participate in the program, but those provisions were removed before the committee considered the proposal.

HB 555 has a companion measure in the Senate — SB 552 — but the proposal has not been touched since it was introduced on March 4, the report said.

The Florida medical cannabis program has over 900,000 registered patients.

Last year, the state’s adult-use constitutional amendment could not reach the 60% threshold necessary to pass, falling short with just 56% voter support. Advocates are planning to make another attempt at legalization in 2026. Meanwhile, Florida officials recently fined the campaign $121,850, accusing the group of having violated state election laws.

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