Catalyst sues Calif. tax agency again – Newsletter 5/29/26

Hi all, It was another head-spinning week in the weed patch. Let’s dive in. Alex

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FROM WEEDWEEK

SCOOP: Catalyst sues Calif. tax agency again

Litigious retailer Catalyst has filed another lawsuit against the California Department of Tax and Fee Administration (CDTFA) on top of the one it is already waging against the agency.

Read the story

Also in WeedWeek:

• Newsbrief: A new ‘lawyerly’ challenge to 280E
• Newsbrief: Calif. regulator seeks dismissal of non-profits’ suit

QUICK HITS

Federal:

• A federal judge dismissed the lawsuit challenging the the distribution of hemp-derived products through Medicare.
  Bloomberg Law
• The Free Press reports on how billionaire credit card magnate sold Trump on MED.
• Indiana, Louisiana and Nebraska have joined the fight against rescheduling.
  MJBiz
• Sen. Ted Cruz (R-Texas) doesn’t think there are enough votes to stop the federal hemp ban.

Business:

• Law360 looks at the rescheduling hurdles MED companies face.
• Amid rescheduling, leading MSO Curaleaf announced plans to uplist to a U.S. stock exchange.
• With hemp beverages in jeopardy, wholesalers and retailers are looking for something to replace the revenue.
  BevNet
• Consultancy Verdant Strategies warns that the IRS has stepped up enforcement related to Form 8300, which must be filed for certain cash transactions exceeding $10,000.
• MSO Vireo Growth keeps acquiring companies.
  MJBiz
• MSO TerrAscend, which recently exited Michigan faces lawsuits in the state over alleged unpaid bills.
  Crain’s Detroit Business
• MSO Cresco Labs said it had registered certain MED businesses with the DEA.
• “Rescheduling won’t fix your exit,” but an Employee Stock Ownership Plan (ESOP) might, ESOP consultant Darren Gleeman writes.
  MG Magazine

State and local:

• A new Minnesota law will merge its MED and REC supply chains and enable hemp companies to participate as well.
  Minnesota Public Radio
• Illinois lawmakers are now weighing a market overhaul.
  Illinois NPR
• Axios checked out a Midwest industry summit in Chicago.
• A pending New York state budget would subsidize operator costs associated with Metrc.
  Cultivated
• Delaware lawmakers are divided on hemp.
  Spotlight Delaware
• An Arkansas cannabis user has sued Arkansas-based Good Day Farm for allegedly controlling too much of the Missouri market. Several Missouri companies have sued the company with similar allegations.
  Arkansas Democrat-Gazette
• @newjerseycannabistimes offers a primer on the Garden State’s weed wars. The state also said it would regulate hemp products.
• Virginia Gov. Abigail Spanberger(D) explained why she vetoed the REC bill. Meanwhile a corporate entity is consolidating the market.
  @tylerenglander, MJBiz
• Missouri regulators are preparing for the state’s last equity lottery.
  Missouri Independent
• Massachusetts has a new top regulator.
• Rhode Island’s governor picked one as well.
  Rhode Island Current

International:

• Despite reversing REC legalization, Thailand’s market remains robust.
  Bangkok Post

Fun and interesting:

• Marijuana Venture interviewed the anonymous scribe behind satire site Boof du Jour.
• A new report from Whitney Economics and the Global Cannabis Network Collective says price compression is a global issue.
  Forbes

CALIFORNIA HITS

State:

• The Department of Cannabis Control (DCC) has proposed new updates to state pesticide regulations. Public comment period closes June 12.
• The California Department of Tax and Fee Administration (CDTFA) took in $248M in Q1, up very slightly year over year.

Business:

• A Monterey County grower has filed for Chapter 7 bankruptcy.
  Law360
• Leef Brands investor Aaron Edelheit makes a bullish case for the company.
• High Times reports on a trimmigrant’s nightmare.
• Death Row Records Cannabis is expanding to Nevada.
  Hemp Gazette
• Brand Garcia Hand Picked is returning to California.

Local:

• Lawyer and analyst Hirsh Jain called the Los Angeles ballot initiative to tax unlicensed shops “counterproductive, incoherent and unenforceable.” Voting closes on Tuesday.
  High Adam
• The Artist Tree in West Hollywood announced an exhibit celebrating art & pride. It opens June 4.
  LA TV Film USA
• A licensed Paso Robles (SLO Co.) business was charged with illegal sales.
  The Tribune
• Humboldt’s planning commission approved a big farm expansion despite odor concerns. KymKemp
• California City (Kern Co.) put a moratorium on new operators.
  NBC
• Emerald Triangle cops are on the lookout for human trafficking.
  Jefferson Public Radio