Calif. DCC is “sandbagging” diversion enforcement: Catalyst alleges – Newsletter 3/12/26

THE BIG IDEA

Hi all,

Happy Friday and happy almost spring. It was a typically, though not excessively, hectic week in the cannabiz.

In the newsletter:

• DCC “sandbagging” diversion enforcement: Catalyst alleges

Hope you find it valuable,

Alex

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FROM WEEDWEEK

DCC “sandbagging” diversion enforcement: Catalyst alleges

Retailer Catalyst alleges the California Department of Cannabis Control (DCC) is trying to evade a court order on how it prevents diversion from the licensed market.

Read the story

Also in WeedWeek:

• Metrc nets partial win in executive termination suit
• Newsbrief: THC infusion supplier Vertosa moved to dismiss a Florida hemp lawsuit.
• Newsbrief: Gen Z makes vapes bestselling category in California

QUICK HITS

Federal:

• The 9th Circuit ruled the Dormant Commerce Clause does not apply to cannabis, prompting a “circuit split.” Such cases sometimes end up before the U.S. Supreme Court.
  Reuters
• A House committee passed a farm bill which did not address the coming hemp ban.
  Cannabis Business Times
• Related: Canna Law Blog asked what the coming ban means for unsold hemp inventory. For low-dose hemp drinks, lawyer Marc Hauser sees momentum towards alcohol’s three-tier model.
  Cannabis Musings

Business:

• In a court filing, the IRS rejected an argument against industry-hated tax rule 280E. The industry owes an estimated $1.8B in unpaid 280E payments and rescheduling, should it happen, appears unlikely to change that.
  Marijuana Moment, MJBiz
• The Chicago Tribune profiled MSO Verano.
• Longtime canna-scribe Debra Borchardt toured dispensaries with a secret shopper who assesses the customer experience.
  High Times
• Willie Nelson’s hemp-derived THC beverage hit an $80M run rate.
  Fast Company
• Leef Brands, which operates in California and New York, closed on $4.5M of an $8M investment led by Mindset Capital. Jamie Mendola, a former exec with MSO Ayr Wellness, joined the board.
• First Citizens Bank sued cannabinoid supplier MC Nutraceuticals alleging it’s owed $900,000. MC didn’t respond to a request for comment.
• A member of the Vlasic pickle dynasty is now in the Michigan weed biz.
  The ‘Gander
• How liquor store chain Top Ten Liquors learned to love hemp-derived THC beverages.
  MJBiz
• NYMag asked what are the best CBD products.

State and local:

• With many operators failing, Massachusetts is expediting the receivership process.
  Talking Joints Memo
• Richmond magazine asks if Virginia’s forthcoming REC market with work.
• Delaware’s REC market is off to a slow start.
  NPR
• New York sales have been strong in 2026.
  Cannabis Equipment News
• Florida’s supreme court declined to hear a case on a proposed November REC initiative, killing it for this year. Gubernatorial candidate Rep. Byron Donalds acknowledged he used to sell weed.
  USA Today Network, CBS
• Rescheduling could accelerate legalization in Tennessee.
  Action News 5
• Ohio businesses prepare for the coming state hemp ban.
  Columbus Dispatch
• After five years, Alabama MED sales could begin this spring.
  Cannabis Business Times
• Kentucky’s MED market is open, but there are only eight shops so far.
  Cannabis Business Times
• Despite the struggling market, Colorado may raise pot taxes.
  Westword
• An Oregon bill to limit edibles’ potency failed.
  Oregon Capital Chronicle
• Texas is set to begin enforcing a smokable hemp ban at the end of the month.
  NPR
• Michigan’s new wholesale tax continues to hit the industry hard.
  MI Tech News
• Oklahoma MED operators won a federal lawsuit against the state, where Gov. Kevin Stitt (R) has said he wants to shut the industry down.
  MJBiz

Health and science:

• Cannabinoids CBD and CBG may help reverse fatty liver disease, a study found.
  Science Daily
• A new study found a possible link between vaping and cannabis hyperemesis syndrome.
  SFGate

Fun and interesting:

• Is selling Girl Scout Cookies outside dispensaries “genius or a problem?“
  NBC
• Weed nerds have “mind-bending theories” about the afterlife.
  @thebudfather

CALIFORNIA HITS

Business:

• In a federal appeals court, California defended its pro-union labor peace agreement requirement.
  Law360
• Proof Extracts says it has released California’s first cannabis pet product that’s legal under the Department of Cannabis Control’s new rules.

Local:

• Santa Barbara County supes denied requests for extensions on the March 18 deadline for farms to install odor control technology.
  Santa Barbara News-Press
• Sales in Redding sagged after a tax increase.
  Record Searchlight

Upcoming:

• SF festival Space Walk is returning the week of 4/20.