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DeSantis took Big Tobacco contributions as he fought legalization

Plus, Oklahoma dispensaries decline 40%

Good morning.

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And join Jay at 10 am Eastern on Cultivated Live when he sits down with Sam Brill, CEO of Ascend Wellness. Tune in on LinkedIn.

Let’s get to it.

-JB & JR

This newsletter is 937 words or about an 8-minute read. 

💡 What’s the big deal?

FLORIDA
Gov. DeSantis took big tobacco donations as he fought legalization

What happened: Florida Gov. Ron DeSantis took $500,000 in donations from Philip Morris International, the maker of Marlboro and other cigarettes, as he used state funds to fight Amendment 3, the failed bid to legalize cannabis in Florida last November.

Reporter Jason Garcia has the details.

Back up for a second: Amendment 3 received majority support from Floridians but failed to clear the 60% threshold needed for a ballot amendment to become law. 

DeSantis and his administration have come under fire for using state funds to fight the measure. They took donations from the state’s loosely regulated intoxicating hemp industry, and now, it seems from Big Tobacco. 

Why it matters: Philip Morris has made a big bet on IQOS, a heated tobacco product. Earlier this month, DeSantis’ Administration ruled that IQOS would not be subject to the state’s tobacco and cigarette laws.

It’s a scratch-my-back, I’ll scratch yours situation. The whole escapade makes for odd bedfellows: Intoxicating hemp, Ron DeSantis, Florida Republicans, and Philip Morris all teamed up to defeat legal cannabis. 

What’s next: Florida maintains the largest medical cannabis market in the US. And lawmakers have proposed a number of bills to expand access to the program, reports USA Today

And legalization advocates are set to try again. Smart & Safe Florida, the Trulieve-backed group behind the campaign last year, filed a new proposal to legalize cannabis in Florida via a constitutional amendment on the 2026 ballot in January. 

-JB

Quick hits

Federal agencies say they can seize cannabis from legal dispensaries 👀

The US Department of Homeland Security and Customs and Border Protection say they can “summarily” seize cannabis from state-legal dispensaries, but that would change if cannabis is reclassified as a Schedule III drug federally, according to a new court filing. The filing is from a lawsuit filed by New Mexico cannabis businesses who say their product was seized. Former President Joe Biden kicked off the process to reschedule cannabis, but that has been put on hold. Read more

Oklahoma loses 40% of cannabis dispensaries in a year 📉

Oklahoma, once a cannabis license free-for-all, has lost 40% of medical cannabis licenses over a 12 month period ending June 2024, according to the state’s Medical Marijuana Authority. Read more from MJBiz

Ohio Governor wants to redirect cannabis tax revenue to jails 👎

Ohio Gov. Mike DeWine, a Republican, wants to redirect cannabis tax revenue to fund local jails and law enforcement training — and take control out of the hands of local municipalities, reports Cleveland.com. Ohio legalized cannabis last year, and DeWine said he respects the will of the voters though he proposed the changes in his budget for next year. 

South Africa bans edibles 🤔

Though cannabis was decriminalized in South Africa in 2018, the country has not yet established rules regulating commercial sales. And, earlier this month, South Africa’s Department of Health banned the sale, manufacture, and import of foods containing THC. Read more

Connecticut apologizes for ‘retaliatory’ inspection 🥊

Connecticut’s Department of Consumer Protection apologized last week for conducting what appears to be a retaliatory inspection at a cannabis cultivator, after the business owner testified before the state’s legislature in favor of a bill that would revamp testing rules, reports the CT Mirror. Many cannabis operators fear speaking out over retaliations from state officials — it’s an issue that New York regulators and other states have been accused of in the past.

🚀 Deals, launches, partnerships

Entourage goes private

Canadian cannabis operator Entourage Health is going private, after shareholders approved the deal on Monday. Parties related to the LIUNA Pension Fund of Central and Eastern Canada – 1001095275 Ontario and guarantor 243753 Ontario – will purchase all the issued and outstanding common shares of Entourage for 0.005 Canadian dollars ($0.0035) per share, per the press release

Illinois switches track-and-trace system

Illinois is switching its track-and-trace system, a key piece of the cannabis supply chain, from BioTrack to Metrc. The Cole Memo reports that the phased transition will begin on April 1.

📊 Chart of the day

Most cannabis consumers have a moderate-to-high trust in the legal cannabis market to provide them with safe, clean, and tested products, according to a new poll from NuggMD.

“One can read this poll with either optimism or pessimism. Knowing that consumers have trust in the integrity of a market is generally a good thing. But there’s mounting evidence that suggests the regulated markets don’t uniformly provide product that’s clean, safe, and free of contaminants. I don’t think that would be tolerated in any other consumer market,” NuggMD Head of Communications Andrew Graham said. 

“The root of this problem, like so many others in the cannabis sector, is federal prohibition.”

📰 What we’re reading

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