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- Pennsylvania Governor Josh Shapiro renews push for legalization 📈
Pennsylvania Governor Josh Shapiro renews push for legalization 📈
Plus, Canada’s legal cannabis industry contributes over $7 billion to GDP
Happy Wednesday.
As a reminder, we’ll have Aurora Cannabis CEO Miguel Martin on Cultivated Live at 10 AM to chat about the latest quarter and what’s next for the company. You can tune in on our LinkedIn page or on Jeremy’s X page (and be sure to give us a follow while you are there).
In other news, the Senate Finance Committee voted 14-13 along party lines to send Robert F. Kennedy Jr.’s nomination for Secretary of the Department of Health and Human Services to a full floor vote. RFK Jr. is a noted vaccine skeptic but has made positive comments about federal cannabis reform in the past.
Let’s get to it.
-JB & JR
This newsletter is 1,227 words or about an 11-minute read.
💡 What’s the big deal?
PENNSYLVANIA
Governor Josh Shapiro renews push for legalization — again
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What happened: Pennsylvania Governor Josh Shapiro tried last year (and the year prior) to include cannabis legalization in the state’s budget, to no avail. Now, he wants to try again.
What happened: During Shapiro’s Tuesday budget speech, he called on the state’s legislature to deliver a bill that legalizes cannabis sales and expunges cannabis-related convictions to his desk.
He said he wants to use the revenue to invest back into the state. Read the full speech.
What they’re saying: “It’s long overdue to regulate and tax adult-use cannabis,” Shapiro said. “Letting this business operate in the shadows doesn’t make sense. And by doing nothing, we’re making Pennsylvania less competitive.”
Shapiro added that five of the Keystone State’s neighbors have legalized cannabis sales, including the big, lucrative markets of Ohio, New Jersey, New York, and Maryland.
“I've talked to the CEOs of the companies who own adult-use cannabis stores right across the border in New Jersey, Maryland, and New York. They tell me that up to 60% of their customers in those shops are Pennsylvanians,” Shapiro said.
His office estimates that legal cannabis sales will generate $1.3 billion of revenue in the first five years.
Go deeper: A summary of the budget proposal calls for legalization to begin on July 1, 2025 with retail sales commencing on January 1, 2026. The proposal states that $10 million of tax revenue would fund restorative justice programs, as well as $25 million to help small businesses enter the market and compete.
The state, er, commonwealth, estimates that retail cannabis tax revenue will drive $250 million of sales yearly.
Many Pennsylvania lawmakers, including Senator Sharif Street, a Democrat, supported Shapiro’s call for legalization on Tuesday.
And there are already multiple legalization proposals floating around the state’s legislature, including a relatively simple decriminalization bill proposed by State Rep. Danilo Burgos, as well as a more comprehensive approach proposed in December.
The industry response: “Today’s proposal from the Governor demonstrates thoughtful leadership, and bold policy that the people of this state want and deserve,” ResponsiblePA, a legalization advocacy group, said. “To go another year under prohibitionist policy serves no one and dwindles the state’s resources.”
“Pennsylvania is an island surrounded by a sea of taxed and regulated legal cannabis states,” Chris Woods, the CEO of Pennsylvania cannabis company Terrapin, said. “We can either continue to lose revenue to other states or act now with a responsible approach that curbs the illicit market. Our only viable option is to act now.”
Why it matters: After Florida’s legalization vote failed, the industry is hunting for a big new market to put the wind in its luffing sails. Pennsylvania, with its population of 13 million, could be just the ticket.
It would also continue to fill in the legalization wall on the East Coast, putting even more pressure on Virginia to get its act together.
-JB
💬 Quotable
The Indigenous Cannabis Industry Association reacts to the federal funding freeze and its quick recission:
“One of the primary reasons the Indigenous Cannabis Industry Association was founded was to explore and implement self-reliant economic revenue streams that ensure financial sovereignty for our people — outside of gaming where applicable, but more importantly, outside of reliance on federal funding,” Rob Pero, the Association’s president, said in a statement.
The statement continues:
“The abrupt nature of this directive underscores the urgent need for tribes to strengthen their own financial security by investing in emerging industries where we hold unique advantages and have the potential to build thriving, self-sustaining economies.
Cannabis and hemp represent more than just economic opportunities; they are pathways to workforce development, health and wellness solutions, and long-term financial resilience. Tribal nations must take this moment to assess how they can leverage these industries—not only to drive economic growth but to reinforce their sovereignty and autonomy in a way that safeguards future generations.”
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⏩ Quick hits
Virginia House votes to legalize 🚀
Virginia’s House voted 53-46 in favor of a bill that would legalize and regulate cannabis sales, Marijuana Moment reports. The vote comes a week after the State Senate approved a companion bill. Virginia’s legislature last year passed a legalization bill that was eventually rejected by Governor Glenn Youngkin, who has signalled he’ll try to veto the next iteration.
Canada’s legal cannabis industry contributed over $7 billion to GDP 📈
Canada’s legal cannabis industry contributed $7.7 billion (CAD) to Canada’s GDP in 2023, according to Statistics Canada, a federal agency. Read more from StratCann.
Montana Senator proposes $200 ID card for the legal purchase of cannabis 📉
Montana State Sen. Greg Hertz, a Republican, proposed a bill that would amend the state’s legal cannabis law to force consumers to buy a $200 ID card, and renew it every year, that would allow them to purchase cannabis. The ID card would contain personal details like full name and street address. Read the bill’s text.
Massachusetts warns about tainted cannabis products 🚨
Massachusetts’ Cannabis Control Commission alerted consumers that two separate licenseholders sold pre-rolls and raw cannabis flower products potentially contaminated with yeast and mold between September 18 and January 30. Check out the alert and list of products.
Tennessee allows intoxicating hemp sales until June ⏰
Intoxicating hemp products will be allowed to be sold in Tennessee until June, at which point a legal challenge to ban the products will begin trial in Nashville, reports The Tennessee Lookout.
White Earth Nation to open first off-reservation dispensary in Minnesota 🌿
The White Earth Nation, a band of Minnesota Chippewa, is set to open the first dispensary off a reservation in Minnesota in March, per local news reports.
🤝 Deals, launches, partnerships
Illinois switches to Metrc for track-and-trace program 🤝
Cannabis regulatory company Metrc on Tuesday announced it entered into a contract with the state of Illinois to provide track-and-trace software. It’s the fourth state that has switched to Metrc’s system, the company said in a press release.
Nabis expands partnerships with Dutchie and Embarc 👀
Cannabis wholesale platform Nabis is expanding its offerings with new tech and logistics integrations, partnering with Dutchie for point-of-sale connectivity and Embarc for streamlined distribution, the company said.
📊 Stat of the day
A strong majority of Texans support legalizing cannabis for all adults, according to a new poll from The University of Houston:
79% support medical cannabis.
69% support decriminalization.
62% support legalizing the sale and use of cannabis for those over the age of 21.
📰 What we’re reading
UW-Madison students embrace innovation and sustainability in cannabis science course | The Daily Cardinal
Even where weed is legal, product safety isn't guaranteed | Colorado Public Radio
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