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• SCOOP: MedMen sues its founders for overpaying themselves

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Industry wins on testing

To combat potency inflation, the Department of Cannabis Control (DCC) had proposed that all product be tested through a standardized method. This created a big problem for edibles makers. Kiva submitted concerns in public comment that the method would not fully capture the cannabinoids in some edibles products forcing product makers to increase the content of THC and other cannabinoids in their products, potentially creating unpleasant or unsafe experiences for consumers. The DCC clarified that the method only applies to flower and pre-rolls. 

• Also: The DCC is soliciting proposals for research projects studying the impact of legalization. Up to $20M in grant funding is available.

Statewide:

• Gov. Gavin Newsom called for the creation of a new cross-agency law enforcement task force to combat the illegal weed market and “transnational criminal organizations.” Siskiyou Co. Sheriff Jeremiah LaRue posted on the issue in the state’s far north.
• Newsom’s economic development office is also set to provide $15M over the fiscal year to “advance economic justice” in the industry.
  Financial Regulation News
• President Biden’s pardon of federal possession offenders could accelerate pardons in California.
  WeedWeek, SacBee

Business:

• In August, sales dropped in most markets, including California, according to BDSA.
• MJBiz reports on a settled lawsuit between REIT Innovative Industrial Properties and Palm Springs-based operator Kings Garden, which defaulted on $2.3M in debt.
• A Canadian lender foreclosed on the two grow buildings in east Oakland which were forced by court order to shut down their diesel generators. The Real Deal
• Cannabis Wire asks why California’s appellations program has been slow to get off the ground.
• The L.A. Times checked out Thailand’s newest industry and Swami Chaitanya.

Local:

• Catalyst Cannabis CEO Elliot Lewis backed out of a debate on his controversial push to bring dispensaries to bring dispensaries to three L.A. County beach cities. He called the host Easy Reader biased against him.  He said similar things after WeedWeek‘s recent story.
  Easy Reader
• Eli Buffalo, CEO of Moon Valley Cannabis, Scot Candell, CEO of CB Labs and Dona Frank Managing owner of OrganiCann, MendoCann and The Natural Cannabis Company discussed the issues they’re facing in Sonoma, Mendocino and Marin counties. North Coast Business Journal
• The Sacramento Bee endorsed Measure L which would direct 40% of the city’s pot taxes to youth programs.
• Small-scale farmers from the Mendocino County Alliance weighed in on local proposals they view as crucial to their survival.
  Mendo Voice
• Tucky Blunt Jr., owner of Oakland’s first equity business Blunts + Moore, discussed the city’s weed scene.
  Muse by Clio
• San Bruno (San Mateo Co.) is opening up to sales.
• Santa Barbara Co. supes approved a grow near expensive prep school The Cate School. NoozHawk
• Former Adelanto (San Bernardino Co.) City Council member Jermaine Wright was sentenced to five years in federal prison. His offenses included accepting a $10,000 bribe from someone he believed owned a cannabis company.

Legal:

• A court upheld a ruling barring a church in Big Bear City (San Bernardino Co.) from providing cannabis to parishioners except under narrow circumstances.
  Met News
• A proposed class action lawsuit accuses Humboldt Co. officials of catching innocent landowners in their “dragnet” approach to illegal grow enforcement.

Nevada:

Nevada pot sales fell slightly to a bit under $1B over the fiscal year. Casino.org

Company milestones:

• Brand accelerator Petalfast is bringing California brands to Arizona.
  Tucson Weekly
• Snoop Dogg has new Snazzle Os infused onion rings, in partnership with Tsumo Snacks.
• Heavy Hitters launched Lights On, THCV-infused “energy gummies.” 
• Left Coast Extracts said it’s expanding to Nevada.
• StateHouse Holdings, formerly Harborside, announced a new distribution partnership with Nabis.