Not yet Pennsylvania

PA WON’T GET WEED
Pennsylvania’s budget leaves out cannabis

What happened: Pennsylvania won’t get legal cannabis this year. 

State lawmakers passed a $47.6 billion budget that includes increased spending on public education, transit systems, and other areas. But the bill did not include provisions for the legalization of recreational cannabis. 

Disagreements over the industry’s potential structure and a lack of consensus among Democrats derailed the proposal. Some legislators advocated for a state-run model, similar to how alcohol is sold in Pennsylvania, which some in the industry pushed back against. 

Republicans, on the other hand, opposed legalization on the grounds that it is still federally classified as a Schedule I drug. 

What they’re saying: “To my knowledge, this [the legalization of recreational cannabis] was not a serious consideration in this budget negotiation this session,” State Rep. Dan Frankel told Spotlight PA.

Back up: Governor Josh Shapiro’s initial budget included the legalization of recreational cannabis, estimating it could generate over $250 million in annual tax revenue. 

Support for legalization has grown since medical cannabis was approved in 2018, and as other neighboring states, like Ohio and New York, have approved recreational use. 

However, Shapiro was able to give PA’s cannabis industry state-level tax credits to offset the federal 280E tax burden. The rule prevents cannabis businesses from claiming standard business deductions.

Why it matters: Neighboring states, including newly-legal Ohio, will reap the tax dollars and job creating-benefits of Pennsylvania’s prohibition. 

Dispensaries located near the border of states without legal cannabis have consistently seen higher sales and customer traffic.  

And more: States voting on legalizing recreational cannabis in November’s election include Florida, North Dakota, and South Dakota. Nebraska will vote on medical legalization.

States opening up recreational cannabis markets either in 2024 or in the coming years include Minnesota, Ohio, Kentucky, Delaware, Rhode Island and Virginia. 

Editor’s note: An earlier version of this newsletter was corrected to update that South Dakota is voting on legal cannabis, and Nebraska is voting on medical legalization.

-CB

“We need a tax holiday so bad it hurts. I don’t know what we look like here in a year without it,” Whitney Beatty, a Los Angeles social equity cannabis license holder told Green Market Report. “The people I know, everybody is teetering on the edge of being open. It’s not like, some people are having a hard time. Everyone is having a hard time.”

Social equity cannabis entrepreneurs in Los Angeles are facing significant challenges. A small group is lobbying Mayor Karen Bass and the city council for aid, such as municipal tax reform, to ensure their survival. Despite their efforts, the future remains uncertain, with many struggling to stay open due to high taxes and insufficient support. Read more. 

What the ‘DOOBIE’❓❓

The DOOBIE Act (Dismantling Outdated Obstacles and Barriers to Individual Employment Act), introduced by Sen. Gary Peters (D-MI), aims to prevent federal agencies from using past cannabis use as a factor in employment and security clearance decisions, which would align federal employment policies with the growing legalization movement. Read more. 

Delta vs. SND 🥊

Delta Extraction, a Missouri-based marijuana manufacturer, is being sued by former contractor SND Equipment Leasing for nearly $20 million in unpaid invoices and lost revenue. Read more. 

Delayed clinical cannabis trials in Canada 🇨🇦

Canadian clinical trials with cannabis are delayed due to a lack of Good Manufacturing Practices (GMP) certified products, despite government approvals and significant funding. Most cannabis in Canada meets Good Production Practices (GPP) standards, which are cheaper to produce but lack the rigorous quality assurance required for clinical trials. Read more. 

Morocco exports legal weed 🇲🇦

Morocco completed its first legal cannabis export, marking a significant step in transitioning its illicit cannabis industry into a legitimate export market. The country exported 100 kg of cannabis resin to Switzerland. Read more. 

DC industry’s wonky growth 🌲

Washington DC’s medical cannabis industry faces uneven growth despite efforts to ease barriers and reduce the gray market. While new dispensaries are opening, cultivators and manufacturers struggle due to zoning restrictions and real estate challenges. Read more. 

The Bettering Company (TBCo), a Chicago edibles brand with vegan and gluten-free THC products, is expanding into New York City.

Solomon Israel, formerly a reporter at MJ Biz, is joining the Ontario Cannabis Store (OCS) as a Senior Communications Advisor, he said on LinkedIn. 

Cannabis has been legal in Minnesota for almost a year. What now? | The Minnesota Daily

Top federal drug official wants U.S. to move ‘away from criminalization’ and focus on treatment | Marijuana Moment

Unknown compounds found in marijuana testing samples, lab owners say | MJBizDaily

30,000+ comments submitted on DEA’s proposed rescheduling rule | Cannabis Business Times

New data shows this unlikely region is dominating the legal pot market | GreenState

Cannabis drinks: How do they compare to alcohol? | Harvard Health Publishing