🛑 Virginia Governor vetoes cannabis sales — again

VIRGINIA
🛑 Gov. Youngkin vetoes cannabis sales — again

Driving the news: Virginia might be for lovers, but evidently it’s not for buying cannabis legally. 

In a widely expected move, Republican Gov. Glenn Youngkin vetoed a bill passed by the legislature that would’ve established a regulated market for cannabis sales in the state. It’s the second time in as many years that he vetoed cannabis sales.

Virginia decriminalized possession of up to one ounce of cannabis and growing up to four plants in home in 2021, but the state has yet to establish a regulated market — and likely won’t, until Youngkin leaves office in January of 2026. (He’s term limited). 

What he’s saying: “Cannabis commercialization has failed, and will continue to fail, to deliver on its promises — it has actively endangered public health, fueled crime, and put lives at risk. States that have embraced legalization are now grappling with the devastating consequences of a failed experiment, and the cost of ignoring these warning signs will only continue to grow.” Youngkin said in a statement. 

“Attempting to rectify the error of decriminalizing marijuana by establishing a safe and regulated marketplace is an unachievable goal. The more prudent approach would be to revisit the issue of discrepancies in enforcement, not compounding the risks and endangering Virginians’ health and safety with greater market availability.”

Why it matters: The rest of Youngkin’s statement is riddled with embellishments and falsehoods on the effects of cannabis legalization, with the familiar Republican anti-legalization bogeymen of rising teen use, consumer safety, and mental health issues leading to violent crime. 

Putting aside the fact that the actual evidence for all this is mixed — and that most credible scientists would say that much more research is needed — Youngkin’s focus on keeping supply illegal is a poor policy choice to alleviate the problems he highlights, if they do indeed exist with the level of urgency he says. 

Supply will meet demand. It’s better to have that supply be taxed and regulated. It doesn’t help solve these public health problems that Youngkin highlights if you push meeting that demand to illicit sellers, who don’t care very much about age limits, testing products, and keeping consumers safe. 

Canada, for its part, has not seen the sky fall in terms of public health with legalization nor have many US states like Colorado and New York, despite what some Republican governors and anti-cannabis groups say. 

And more: We should also highlight the difference in rhetoric on cannabis between Republican governors like Youngkin and Florida’s Ron DeSantis, with Democratic governors like JB Pritzker and Pennsylvania’s Josh Shapiro.

While DeSantis takes money from Philip Morris to fight legalization and Youngkin vetoes legislation, Shapiro is going on a full-court press to get legalization passed in his home state. 

What’s next: It’s possible lawmakers challenge Youngkin’s veto, though that will be an uphill battle. It’s also possible that they try another cannabis sales bill, but Youngkin’s mind seems pretty made up. 

For now, Virginians are going to have to wait. 

-JB

“We’re going into the season knowing that we are going to lose money,” Karli Hornick-Miller, the cofounder and chief executive of New York cannabis company Florist Farms, told the New York Times on how Trump’s tariffs will affect the cannabis industry. 

“If we were just a vegetable farm, we would be going out of business.”

Read the full New York Times piece.

Arizona says all hemp-THC products must be sold through dispensaries 👀

In the latest state-level crackdown on hemp-derived THC products, Arizona Attorney General Kris Mayes told law enforcement that the sale of THC products, including hemp-derived beverages and edibles, is illegal outside of state-regulated dispensaries. Mayes directed officials to wait until April 24 to enforce, though there will likely be lawsuits. Arizona is the latest state to attempt to crack down on hemp-THC products after California issued an emergency ban, and states including Kentucky, Ohio, and Illinois have weighed legislation to stop sales. Read Mayes’ letter. 

Minnesota clears key step for cannabis licenses 📈

Minnesota’s Office of Cannabis Management on Tuesday said it cleared a key step for awarding long-awaited cannabis licenses, by submitting its proposed regulations for final approval. An administrative judge now has 14 days to approve, approve with changes, or disapprove the rules. Once approved, businesses will be able to receive their licenses. Read more.

Ohio lawmakers want to rein in hemp 🥤

Ohio lawmakers proposed two bills, supported by Gov. Mike DeWine, that would rein in the state’s intoxicating hemp market by forcing products containing THC to be sold through state-regulated dispensaries, and limit products outside of dispensaries to 0.5mg of THC total. But some hemp industry operators say this is a push for licensed cannabis sellers to “corner the market,” and push out the competition via regulatory capture. Read more.

The DEA promotes ‘Anti-420’ social media push 🤔

The Drug Enforcement Administration is promoting an ‘Anti-420’ day by recruiting teens and young adults to submit videos about the harms of THC in order to flood instagram. Participants are eligible for Amazon gift cards. The program is run by the nonprofit Johnny’s Ambassadors, a youth marijuana prevention group. Read more from Marijuana Moment.

The Cannabist is expanding its line of dreamt edibles, designed to help consumers sleep, to Massachusetts, Virginia, and New Jersey for National Sleep Awareness month. 

MTL Cannabis Corp says it will list its shares over-the-counter on the OTCQB marketplace under the symbol "MTLNF”. It will continue trading on the Canadian Securities Exchange as well.

The Environmental & Consumer Compliance Organization (ECCO), a California-based cannabis consumer safety group, announced that Jennifer Lujan will be the organization’s executive director. Lujan previously served as the Senior Director of Social Impact at Eaze. The organization also announced its first cohort of certified members, including Raw Garden, Noble Pacific, LEEF, and more. Check out their website here.

California-based Glass House Brands reported its full-year fourth quarter results on Tuesday. The company reported $200 million of revenue for the last fiscal year, up 25%, and $53 million of revenue for the fourth quarter, up 31% sequentially. 

And more: CEO Kyle Kazan said the company has acquired a hemp license. It’s the latest cannabis firm to push into the hemp-derived THC space, after Curaleaf, Trulieve, and others.

“It is clear that there is massive demand throughout the country, and we are confident that we could sell everything we grow, that is 2018 Farm Bill compliant,” he said.

Cannabis and heart attack risk ❤️

A new study published in the Journal of the American College of Cardiology found that people under the age of 50 who use marijuana are six times more likely to have a heart attack and four times more likely to have a stroke compared to non-users, reports ABC. The study did not distinguish between the effects of smoking, vaping, or consuming cannabis via edibles, and the researchers called for more studies to evaluate the risk of cannabis on cardiovascular health.

The American Rights and Reform PAC, a pro-legalization political action committee, released two ads on its website appealing to Trump to push cannabis reform.

The ads cast the lack of legalization as a failure of former President Joe Biden’s — while President Trump, of course, could’ve pursued cannabis reform in his first term — and discuss how Canada is “attacking” US companies, calling cannabis rescheduling an “America First” fight. 

It’s certainly an interesting strategy, though the ads are far from entirely truthful. But hey, if this is what it takes to get Trump’s attention back on the issue…

Cannabis legalization pushback: Anti-legalization groups ramp up efforts to stop the green wave | Reuters

Opinion: Is Illinois’ 'legal marijuana' truly legal — and who does it really benefit? | Crain’s Chicago Business

Meet the ‘Cali Sober’ Set: No Booze, but Drugs Are Fine | The Wall Street Journal

Is Inflation Good or Bad for the Cannabis Industry? | Cannabis.net