IN THE NEWS — 6/2/21

Goings on:

TEXAS BILL MAKES MED A TINY BIT MORE ACCESSIBLE

Not everything’s big in Texas.

In what may be the smallest bore cannabis reform ever, the Lone Star State’s legislature passed a bill to expand the state’s MED program to patients with PTSD and cancer. It also raised the maximum allowed potency from 0.5% THC to 1%, well below the 5% some activists had hoped for.
Texas Tribune

  • It’s not clear whether Gov. Greg Abbott (R) will sign the bill.
  • A bill which would have reduced penalties for possession of THC extracts fell short.
    Austin American-Statesman 
  • I previously explained the dynamics which make reform in Texas more difficult than in many other conservative states. 
    WeedWeek

In Forbes, Chris Roberts explains how Republican efforts at vote suppression cancel cannabis legalization.

Elsewhere in red states:

HARBORSIDE, GREEN THUMB BULK UP

California-based retailer Harborside and Illinois-based MSO Green Thumb Industries both announced acquisitions after the holiday weekend.

Many observers expect acquisitions to accelerate in coming months as the largest companies vie for position. 

  • Harborside said it would acquire Sublime (Sublimation Inc.) for $43.8M. The company is known for its Fuzzies pre-roll brand.
  • Green Thumb said it acquired Liberty Compassion for an undisclosed sum, bulking up its presence in Massachusetts.
    MassLive

In more corporate talk:

Quick Hit

  1. In a blog post, internet giant Amazon endorsed federal legalization through the MORE Act, a progressive bill.
    CNBC 

POT SHOPS FEEL OUT THEIR RETURN TO NORMALCY

Dispensaries and CBD merchants are slowing rolling back their Covid-related restrictions, MJBiz reports.

  • During the pandemic pot shops, like other retailers imposed social distancing, mask mandates and other protocols. Now many are rolling them back in line with states’ guidance.
  • As per usual with cannabis, the laws vary from state to state and town to town. 

Retail Customer Experience explains how self-service options have catalyzed the proliferation of dispensaries nationwide. 

  • The New York Times discusses how the pandemic was a “breakout moment” for the cannabiz.

SOCIAL MEDIA ACTIVISTS THREATEN BOYCOTT

Calls for a boycott of several prominent brands circulated on social media after two executives questioned the value of Michigan’s MED caregiver system. 
Grown In

Growing outside the licensed industry, by caregivers or homegrow hobbyists, can encroach on corporate revenue. Michigan has 30,000+ caregivers serving 250,000+ patients and they remain a source of frustration for some companies with a presence in the state. 

  • On May 10, Ryan Ori, an executive at grower Six Labs said in a podcast interview “We’re competing against people who are not only cheating, but putting the public at risk, and these are tax dollars not going into your coffers.”  
  • Steve Linder, executive director of the Michigan Cannabis Manufacturers’ Association(MCMA), added that caregivers “don’t test, don’t create jobs and don’t pay taxes.” (Neither Six Labs nor Linder responded to requests for comment. MCMA’s web site also reportedly went dark.)  

While meaningful action action Michigan caretakers seems unlikely, homegrow activists on social media still called for a boycott of brands affiliated with MCMA.

  • Their targets include prominent multi-state brands including Kiva Confections, Wana Brands and Sherbinskis which have partnered with MCMA members.
  • Kiva and Wana, which have partnerships with MCMA member High Life Farms, declined to comment. High Life didn’t respond to a request for comment. 
  • In a statement to WeedWeek, Sherbinskis founder Mario Guzman wrote “We stand with caregivers.” He didn’t reconcile the statement with Sherbinskis’ partnership with MCMA member Common Citizen, which didn’t respond to requests for comment.
  • At least one MSO, Pleasantrees, discontinued its membership in MCMA.

Bottom line: Thus far consumer boycotts haven’t been a meaningful force in the cannabis industry. It’s not clear if this one has any traction.

Quick Hit

  1. Florida’s Supreme Court ruled that a challenge to state regulations, which have given rise to a market dominated by a small number of companies, did not have a “substantial likelihood of success.” 
    Tampa Bay Times

MORE ACT RE-INTRODUCED

The MORE Act, a progressive bill that would essentially legalize cannabis federally, was re-introduced by Congressman Jerrold Nadler (D-N.Y.).

  • The bill passed the House in December, though Nadler’s new version eliminates language, unpopular with liberals, which would have blocked those with past pot convictions from earning federal licenses.
  • The bill is unlikely to pass the Senate, which is awaiting an alternative bill from Majority Leader Chuck Schumer (D-N.Y.). Libertarian site Reason asks if Democrats realize they’ll need Republican support to pass a legalization bill.

Quick Hit

  1. A bill to allow consumption lounges advanced in Nevada.
    Review-Journal

IN THE NEWS — 5/29/21

Doings:

IN THE NEWS — 5/26/21

Goings on: 

HOW MSOs THINK ABOUT LEGALIZATION

In cannabis, so much happens even as nothing seems to change. 

Events in recent months indicate the momentum for legalization has never been stronger. But the same laws blocking the industry’s access to banking, interstate trade and other routine business activity have left brands facing the same obstacles they’ve encountered for years. 

I wrote a story for MJBrand insights discussing how some of the industry’s biggest operators think about strategy at this weird moment:

“None of us actually know what’s going to happen,” said Steve Allan, CEO of The Parent Company, a portfolio of brands including Caliva and Jay-Z’s Monogram.  Allan suspects federal legalization is several years off, but in this volatile and uncertain climate, he said Parent aims to maintain “high optionality.” In other words, he doesn’t want to pursue a strategy that depends on a politician voting a certain way.”   

Read the whole thing.

More interesting stuff from MJInsights:

CONNECTICUT NEARS REC DEAL

The northeast dominoes continue to fall.

Top Democratic lawmakers in Connecticut said they’re close to a deal with Gov. Ned Lamont (D) to legalize REC. A vote could come as soon as next week.
Hartford Courant

  • Issues including homegrow and equity benefits remain unsettled.
  • They’ll have to move fast since the legislative session ends on June 9.
  • If a bill doesn’t pass it could appear on the ballot in November 2022.
  • Marijuana Moment has more.

Nearby, businesses in New York and New Jersey are already racing to stave off pot shortages. And HeadyNJ beefs about corporate cannabis in New Jersey and Massachusetts.
New York Times

  • Down the coast, Delaware could also go REC soon. MJBiz checks out some of the longer shot states states where reform this year is still on the table.