NY lawmakers want to allow dispensaries to sell intoxicating hemp products 🌿

NY, NY
New bill would allow legal dispensaries to sell intoxicating hemp products

What happened: A new bill introduced in the New York State Senate on Monday would allow legal dispensaries to sell intoxicating hemp products containing THC. 

The bill, introduced by Sens. Luis R. Sepulveda and Robert Rolison, would direct the Office of Cannabis Management to repeal the coming regulations, set to go into effect in July, against products containing hemp-derived Delta-9 THC.

What’s in the bill: This new bill seeks to harmonize regulations between the traditional cannabis market and hemp-derived THC market.

The bill would redefine THC under New York law to include all Delta-9 THC derived from hemp as well as traditional cannabis. It would not include other forms, like Delta-8 or Delta-10.

The bill would also measure total THC percentage by dry weight in each product. It would allow all licensed retailers to sell these hemp-derived products, as long as the safety regulations are met, and would empower the state’s Cannabis Control Board to develop rules. 

Read the full text of the bill.

Back up for a second: Many cannabis brands have started selling products containing THC derived from hemp, as it is federally legal under the 2018 Farm Bill. 

These products have the same cognitive effects on consumers, but are taxed at far lower rates and sellers need to jump through fewer regulatory hoops.

As well, they’re able to sell across state lines. As profits remain elusive in the traditional cannabis market, many companies — including Trulieve, Curaleaf, and other big-name firms — are rotating to these hemp-derived products.

But states such as California and New York have begun to crack down over consumer safety fears, especially with synthetically derived Delta-8 or other forms of THC.

-JB

“My position is very simple, right? President Trump now, during his campaign indicated the three things that he would support. That was adult use in Florida. That was banking and rescheduling,” Curaleaf CEO Boris Jordan told shareholders on the company’s earnings call on Monday.

“And I believe that President Trump will support all those three things. Now obviously with Florida that’s passed us now, but with the other two, my personal belief is that he will support it, that he will — his administration will — push it forward. And obviously, we’re all working with the administration. We’re not planning our business around it, but we do certainly believe that he will follow through on his commitment so far.”

Jordan’s comments echo those of competitor Trulieve CEO Kim Rivers, who believes the Administration will push industry-friendly cannabis reform at some point in the near future, though it isn’t a priority. It differs from those of Green Thumb Industries CEO Ben Kovler who is not bullish on the prospects for federal reform.

Read more on how cannabis execs are thinking about Trump in our February 28 newsletter.

California municipalities want to revamp the state’s regulatory agency 👀

Concerns over pesticide-contaminated products in California’s legal dispensaries have prompted the Santa Cruz County Board of Supervisors to call on Gov. Gavin Newsom and lawmakers to shift responsibility for contaminant testing from the Department of Cannabis Control to the Department of Pesticide regulation, The Los Angeles Times reports. Flawed cannabis testing is an ongoing issue in many states. 

Washington abandons home grow bill 🤔

Washington state lawmakers abandoned a push to allow residents to grow cannabis plants at home, keeping it as a felony, Marijuana Moment reports. Rep. Shelley Koba, the bill’s sponsor, said she wouldn’t “give up,” however.

Colombia President calls for legalization to fight cartel violence 🥊

Colombia President Gustavo Petro called to legalize cannabis in the country, as prohibition “only brings violence,” from cartels. Cannabis use is decriminalized in Colombia but not legal, and various legalization measures have failed in the country’s legislature. Read more.

Curaleaf reported its fourth quarter and full year results on Monday. The company lost $216 million on $1.34 billion of revenue for the full year or 0.29 cents per share.

For the fourth quarter, Curaleaf lost $72 million on $331 million of revenue. The company pulled in $31 million of revenue from its international operations during the quarter.

Check out the full results.

Glass House Brands secures $50 million loan 💰

California cannabis brand secured a $50 million loan at 8.58%, a low interest rate for the industry. The loan is set to mature in 2030. Cannabis companies have relied on debt funding as equity funding for the industry has dried up — but it seems that operators are now able to borrow at more attractive rates than previously.

MariMed completes acquisition of Delaware cannabis company 🌿

MariMed said on Monday it completed its acquisition of First State Compassion, a Delaware cannabis operator. MariMed expects Delaware to become a $215 million cannabis market annually. 

Rubicon Organics agrees to acquire BC cannabis facility from MediPharm Labs 🚀

Rubicon Organics said Monday it signed a purchase and sale agreement with MediPharm Labs to acquire a 47,500 square foot cannabis facility in British Columbia for $4.5 million (CAD).

A-list Oscars attendees received gift bags valued at $220,000 dollars, which includes $5,000 hotel stays in Barcelona, also includes some products from cannabis company Green Thumb Industries, including Dogwalker pre-rolls and Beboe edibles.

Read more from CNBC.

Teen marijuana use in the US is declining to record-low levels, per the nationwide Monitoring the Future survey. That’s true even as more states around the country choose to legalize and regulate sales. Read more.

Up in smoke | Deseret News

Medical marijuana boom for Australian exporters | Financial Review

Cannabis goes mainstream: Big brands and bold moves to break stigmas | The Rolling Stone