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- Trulieve sues the Florida Republican Party 🍿
Trulieve sues the Florida Republican Party 🍿
Plus, Illinois sells over $2 billion worth of weed last year
Good morning.
There’s a bombshell new suit from Trulieve against the Florida Republican Party. We break down the suit and why it matters for you below.
All that, and much, much more.
-JB & JR
This newsletter is 1245-words or about a 9-minute read.
💡What’s the big deal?
FLORIDA
Trulieve sues Florida Republicans over ‘monopoly’
What happened: Trulieve filed a defamation suit against the Florida Republican Party over what the Tallahassee-based cannabis company says is an “intentionally deceptive,” campaign to mislead voters about Amendment 3, the ballot measure to legalize cannabis in the Sunshine State, reports The Miami Herald.
Trulieve has spent over $90 million in support of legalization. But it has faced significant opposition from Republican Gov. Ron DeSantis and the state’s Republican Party, despite the fact that legalization is widely popular in the state.
Let’s play monopoly: At the heart of the lawsuit are claims that DeSantis and the anti-legalization campaign have made that passing Amendment 3 would hand Trulieve a cannabis retail monopoly.
You can see that talking point in speeches by DeSantis — as well as some the ‘No on 3’ backers in the state’s Republican Party and hemp industry — as well as in attack ads against Trulieve and legalization more broadly.
Other anti-legalization groups, like Smart Approaches to Marijuana, have repeated that talking point, including in a public debate on the issue hosted by the Tampa Bay Young Republicans.
But supporters of Amendment 3 say that the language in Amendment 3 doesn’t specifically eliminate competition or bar other companies from entering the industry. They say it’s up to the Florida Legislature to decide rules governing the retail cannabis market, if Amendment 3 is passed.
And, according to Politifact, a nonpartisan fact-checker, the more precise term would be “oligopoly,” which is a market dominated by a few specific companies. A chart from MJBizDaily, an industry publication, shows that Trulieve itself accounts for a quarter of the state’s medical cannabis market.
The ballot measure needs 60% support to become law — polls show it’s likely to pass with 64%, though that is a slim margin.
What they’re saying: “Companies that stand to benefit from the outcome of a ballot measure can pour millions into ballot measure fights. Just because millions are being spent does not mean the ballot measure is rigged,” Stetson University law professor Ciara Torres-Spelliscy told Politifact.
On the other side: “The proponents of Amendment 3 are trying to take down these ads that they know are truthful and are working. That is why they are using lawfare to try to silence us, but we will not be deterred in our efforts. If this huge, powerful corporation can’t handle it, then they should go sit at the little kid’s table,” Florida State Republican Chairman Evan Power told The Miami Herald.
Why it matters: The fight over Amendment 3 has cleaved the Republican Party in two.
It’s become a proxy battle for the future of the party, as the traditionally conservative wing, of which DeSantis is perhaps the standard-bearer, is vociferously against legalization.
But Former President Donald Trump said last month that he’s planning to vote for Amendment 3, and would encourage Congress to pass cannabis reform including banking legislation if he’s elected.
And more: Not all cannabis proponents support Amendment 3.
Some grassroots activists oppose the measure over these oligopoly concerns, as well as what they see as Trulieve spending millions to pass regulation that would benefit the company’s bottom line without advancing criminal justice reform.
- JB
📣 Quotable
“By this time next year, I don’t think we’re going to be having much conversation about the war between marijuana and hemp because every marijuana company is also going to be a hemp company,” Adam Terry, the CEO of hemp-infused beverage company CanTrip, told Green Market Report.
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🥊 Quick hits
Illinois sold over $2 billion worth of cannabis 📊
Illinois released its fiscal 2024 report on the state’s cannabis industry. The report says the state sold over $2 billion (!) worth of cannabis last year. But, despite the report touting that 105 licenses were owned by social equity applicants, an independent study found that less than 30% of those businesses were actually operational, with access to capital as the primary obstacle.
NORML will participate in rescheduling hearing 🌿
The National Organization for the Reform of Marijuana Laws, or NORML, said it will participate in the upcoming December 2 hearing on whether to move cannabis from Schedule I to the less restrictive Schedule III, as the Biden Administration has pushed for. NORML said in its public comments that there’s enough evidence to remove cannabis from the federal list of controlled substances entirely, per the Department of Health and Human Services’ report.
NIDA director sounds alarm over cannabis industry 👀
Dr. Nora Volkow, the director of the National Institute on Drug Abuse, writes in a new blog post that the cannabis industry “has presented new opportunities for commercial interests to drive drug consumption across all ages and demographics.” She said companies are targeting senior citizens with advertisements touting alleged therapeutic benefits.
🤝 Deals, launches, & partnerships
Hemp-derived THC beverages market expands 🥤
New York cannabis brand Ayrloom is releasing a new line of hemp-derived THC beverages in 11 states, including Alabama, Georgia, and North Carolina. The products will be available at participating retail stores and grocery stores for adults over the age of 21. It’s the latest company to offer hemp-derived THC products in states that don’t allow recreational cannabis sales, despite the fact that numerous lawmakers are seeking to close the federal ‘loophole’ that allows intoxicating hemp products to be sold across state lines.
‘Doobies for boobies’ 🩺
Illinois cannabis company nuEra launched a ‘Doobies for Boobies Breast Cancer Awareness’ campaign, where it will donate $1 to Gilda’s Club, a nonprofit that offers services to individuals with cancer, for every pre-roll sold.
🔬 Science & research
Weed makes music better 🎶
A new study from researchers at Toronto Metropolitan University found that cannabis can make music more enjoyable. It’s something we all probably knew already, but it’s cool to see the research behind it.
Pregnancy, cannabis, and arrests 🛑
Since the repeal of Roe, hundreds of pregnant women have been prosecuted for using drugs — with cannabis the second most commonly cited drug, according to a new report from the nonprofit Pregnancy Justice. Allegations of cannabis use appeared in 86 of the 210 cases in the report. Read more from Marijuana Moment.
📊 Chart of the day
A new report from the nonprofit Tax Foundation shows just how much of a drag taxes are for cannabis firms and how much more profitable the industry would be if cannabis were rescheduled.
Cannabis firms can’t deduct regular business expenses because it is considered a Schedule I drug — but that law doesn’t apply to Schedule III and below drugs.
😜 One fun thing
Smart & Safe Florida, the campaign to legalize cannabis in the state, has a new ad called “We’re All Saying The Same Thing.” The ad shows how both Former President Donald Trump and Vice President Kamala Harris — and their running mates — have a similar stance on cannabis and want reform.
Watch:
📰 What we’re reading
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