Hi all,

This newsletter’s coming in a bit late. Circumstances informed against me after a whirlwind trip to Vegas. I hope you still find it valuable.

In today’s issue:

• The gloves come off in the beach cities

Read up,

Alex

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Bitterly contested ballot initiatives on whether to allow dispensaries in three SoCal beach cities could have far reaching implications for retailers trying to access consumers, an ongoing concern for California’s beleaguered cannabiz. The measures have attracted fierce criticism from local officials as well as some in the industry who say more similar initiatives could further hinder the state market.

The initiatives are funded by Catalyst Cannabis and Tradecraft Farms, two retailers eager to open in the affluent and heavily touristed markets of Manhattan Beach, Redondo Beach and Hermosa Beach (Los Angeles Co., 3x). In response, town officials have condemned the initiatives as a foreign invasion. Manhattan Beach Mayor Steve Napolitano and all three city council members signed a statement calling the vote “an abuse of the initiative process,” backed by out of town business interests.

Elliot Lewis, CEO of 13-shop chain Catalyst calls it grassroots democracy. Lewis has gained some renown for social media jeremiads where he describes himself as a fighter delivering #weedforthepeople in the face of “Chads” and MSOs “that ain’t ready for real competition.”

Lewis’ opponents accuse him of trying to secure for himself the kinds of anti-competitive carve outs he claims to oppose, and that…

Read the story…

Statewide:

• The Department of Cannabis Control demanded that companies associated with former brand Kushy Punch pay $128M for making and distributing illegal products.
  Green Market Report
• A new study alleges widespread illegal water usage by legal grows in Santa Barbara Co.’s Santa Ynez River Valley.
  Santa Barbara News Press

Business:

• MedMen argues that a lawsuit claiming it owes nearly $1M in back rent in Chicago should be argued in federal court citing the federal illegality of their business.
  Law360
• The maker of RooR bongs won a lawsuit alleging it violated a California law by not warning consumers that its products expose them to cancer-causing smoke.
  Bloomberg Law
• LinkedIn Activist Greg Welch posted a video of Glass House boss Kyle Kazan coming across his products in New York City. WeedWeek recently reported on apparently authentic Stiiizy products finding their way to the same New York shop.
• Meanwhile meme instagram account @poetryofplants, which has a strong following among legacy growers, is polling readers on whether to continue a dialogue with Kazan, a former cop. 
• Portable dab rig maker Puffco hosted its second annual PuffCon street party in downtown LA this weekend.
  AdWeek

Local:

• PG&E plans to spray herbicides on hundreds of private parcels in Humboldt Co.
• San Luis Obispo Co.’s board of supes approved a new pot-tax compliance program.
• Antioch (Contra Costa Co.) greenlit a new shop and a new grow.
  Mercury News
• A lawsuit alleges the Sacramento Municipal Utility District racially profiled Asians when turning sensitive records of high electric bills over to Sacramento PD.
  Redheaded Blackbelt
• Retail operator TRP opened a Cookies dispensary in Brentwood, the first in the tony LA nabe.
• TRP is partnering with MSO TerrAscend to bring Cookies to Pennsylvania.
• Tulare Co. voters are set to decide whether to allow pot shops on election day.
  YourCentralValley.com

Nevada:

• Starting this month any driver suspected of being intoxicated in Las Vegas can have their blood drawn on the spot. Proof of cannabis impairment requires more than a blood test.
  Casino.org
• Lawyer Jennifer L. Mora explains Nevada’s ruling that weed is not a lawful off-duty product.

Oregon

• Canna Law Blog discusses tough times in the Beaver State.

Fun & interesting:

• Weedmaps picks seven brands that define modern stoner style.

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Company Milestones:

• The Parent Company will start trading on the NEO Stock Exchange, which allows Canadians to invest in their local currency.
• Legacy genetics company Seed Junky, which recently partnered with Glass House, announced a partnership with Klonetics, a nursery in British Columbia. Also, Cookies said it will provide genetics to Akanda in Portugal. It’s not clear to me how companies can legally transport genetics — seeds or clones — across international borders. Neither Cookies nor Seed Junky immediately responded to a request for comment.
  StratCann, Cannabis Business Times
• Skate brand HUF is launching cannabis products and apparel in partnership with Kiva’s Loft Farm line.
• Pro wrestler Rob Van Dam is launching a brand, RVD, with Grapefruit USA.
• Eaze subsidiary Green Dragon opened six MED dispensaries in Florida.
• Lowell Farms launched Lowell 35, a new pre-roll.
• Planet13 expanded cultivation in Nevada.

Prizes:

• Berner received an honorary prize at the CLIO Awards honoring cannabis marketing. Here’s the complete list of winners.

Upcoming:

• TechCrunch Live will feature a conversation with cannatech unicorn Dutchie and Casa Verde Capital on October 12. (Casa Verde just invested in German MED company Sanity Group alongside tobacco giant British American Tobacco.) Vaping Post

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WeedWeek California Pro is the only publication for people who make money in the world’s largest cannabis market. Get a two-week trial subscription for just $1.