2 big states (PA & TX) making headlines

BIG DEALS IN BIG STATES
Pennsylvania and Texas making headlines

From PA: The rumbling around Pennsylvania’s legalization efforts are front-of-mind in that state. For the second year in a row, Governor Josh Shapiro has advocated legalization as way to compete with neighboring, legal states while also reaping the tax windfall. (Shapiro has also become quite the cannabis Tweeter, as we’ve written.) This week, the Philadelphia Inquirer asked, and tried to answer, the question, “When will recreational weed be legal in Pennsylvania? The wait isn’t over.”

From TX: Yesterday we told you about the anti-hemp Lt. Governor of Texas who was doing his own “investigation” into an Austin hemp shop – only to be IDed and told he couldn’t buy high-potency products. That investigation was to support the effort to ban hemp-derived THC products in the state via a bill, SB3. Well, SB3 passed. 

Why it matters: Pennsylvania and Texas are giant states. How they approach cannabis legalization and hemp regulations has major impacts on the cannabis and hemp industries overall. So when big news comes from both states in the same week, you can be sure there are board rooms around the country scenario planning for what it all means. For example, this week alone Wana announced they were launching hemp-derived THC products in Texas. How is that plan impacted by SB3?

What they’re saying in PA: Pennsylvania State Senator Sharif Street, a co-sponsor of a legalization bill, told the Philadelphia Inquirer: “There are both Republicans and Democrats in the House and the Senate who support our approach…I think we’re closer than we’ve ever been and it is a very real possibility for this year — I’m cautiously optimistic.”

What they’re saying in TX: At a press conference touting the passage of the hemp-derived THC ban, Lt. Governor Dan Patrick gave a stern warning to hemp retailers: "You might want to voluntarily close your doors, because the investigations are going to continue, and I’m sure the lawsuits are about to come…You know what you're doing."

What’s next in PA? There is loads of talk about legalization in Pennsylvania. We like to think if that where there’s smoke, there’s fire. And the industry could certainly use a Green Wall of legalization down the Eastern Seaboard and into the Midwest. So we’re hopeful 2025 is PA’s year. There are legalization bills in both the House and Senate — and the industry is spending big to help tilt the scales.

What’s next in TX? SB3 has a companion bill making its way through the Texas House. From there, the Governor would need to sign the ban. This would be a considerable blow to the Texas hemp market and the hemp industry overall. And what a market it’s been. Last year, the Baker Institute at Rice University noted that the market could be $2.78 billion in Texas.

-JR

Yesterday, a new, nationwide hemp-derived products marketplace — Edibles.com — was announced, including cannabis veteran Thomas Winstanley on board. This caused some thoughtful conversation in the online cannabis and hemp communities, including from Adam Terry a.k.a. Weed Drinks Guy a.k.a. CEO of Cantrip a.k.a. @cantripguy 

Cronos Group announced that Anna Shlimak has been appointed the Chief Financial Officer.