Whisteblower sues California regulator

CALIFORNIA CANNABIS
Whistleblower suing the California Department of Cannabis Control

What happened: A former California official charged with overseeing the state’s cannabis labs is suing the California Department of Cannabis Control over what the official alleges is widespread testing fraud, Bloomberg Law reports. 

The official, Tanisha Bogans, says she was fired after bringing evidence to the department that some labs were being pressured to falsify test results and inflate THC potency, per the 13-page complaint filed in the Superior Court of the State of California in Los Angeles County. 

What they’re saying: “This pressure had driven ethical laboratories out of the market,” the complaint reads.

The California Cannabis Industry Association also sent a letter to Bogans, saying the market pressure from growers on testing labs to inflate potency “undermines consumer trust,” and the “legal integrity,” of California’s cannabis industry. 

Why it matters: One of the chief selling points of legalization is that consumers will have both choice and accurate information on product labels to ensure they are taking the right dose. 

That’s important for THC percentage, but it’s even more crucial for the nasty byproducts of growing cannabis like pesticides and heavy metals. You don’t want to inhale that stuff. 

But lab-shopping is an open secret in the cannabis industry. Without stringent regulations that are actually adhered to, even legal cannabis remains a Wild West. 

This lawsuit undermines consumer trust in legal cannabis. 

That could set the legalization movement back decades, especially if one the US’s largest cannabis markets isn’t able to effectively regulate the industry. 

-JB

“I would hope that the people [Trump is] appointing are more enlightened to his thoughts on the subject,” Rep. Dave Joyce, the Republican co-chair of the Congressional Cannabis Caucus told Politico. 

“I think we should lay out a program that is in sync with some of the things that he said, and hopefully he will not only get behind it, but get members of his administration behind it as well.”

New York adds licenses 🗽

New York’s Cannabis Control Board added 123 new cannabis permits, and introduced a new measure that would allow license-holders to apply for a waiver for the proximity restrictions in the state’s cannabis regulations, at this week’s meeting. The state sold $591 million worth of cannabis so far in 2024. You can watch the full meeting. 

SAFE doesn’t have the votes 👩‍⚖️

A bipartisan group of lawmakers said that despite former President Donald Trump’s endorsement of the SAFE Banking Act, a cannabis banking bill, they still don’t have enough votes, Marijuana Moment reports. Per Sen. John Hickenlooper: “Donald Trump can say whatever he wants, but unless you bring us some Republican senators, we’re not going to get SAFE Banking.” 

Law firm sues NY social equity dispensary 👀

A Boston law firm, Prince Lobel Tye is suing Smacked LLC, one of New York’s first social equity dispensaries to open in the state, for $143,000 in unpaid legal bills, per Green Market Report. The dispensary owners say they were “rushed” to open by the state, which led to the company accumulating hundreds of thousands of dollars in debt. The owners say the firm and others were “predatory.” Read the whole story. 

Provinces seize illicit weed 🛑

An investigation conducted by New Brunswick and Quebec authorities seized 432 kilograms of illicit cannabis — the largest seizure in Atlantic Canada, StratCann reports.

How cannabis regulations affect prices 🤑

Lawmakers that want lower-priced cannabis in their state should promote competition by approving more licenses, restrict how many licenses each business can own, and allow vertical integration — that is, allow growers to sell cannabis, economist Boyoung Seo, who studies how regulations affect cannabis markets, writes in The Conversation.

Jason Klimek is joining Manatt Phelps’ cannabis and CBD practice, the firm announced on Wednesday.

Grön is launching a line of cannabis chocolate bars in New York. Yum.

Michigan sold $295 million worth of cannabis last month, per the state’s Cannabis Regulatory Agency.

It’s gaining on California as the state that sells the most pot, according to this chart from Cannabis Business Times.

More Florida cannabis bipartisanship: Miami-Dade Democratic Party chairman Shevrin Jones and Republican State Sen. Joe Gruters appeared in ad for Florida’s Amendment 3:

Lessons learned from Washington state’s marijuana regulations for the US after rescheduling | Green Market Report

Cannabis will likely soon be legally classified as medicine. But medicine for what? | The Guardian

Groups announce opposition to recreational marijuana; ballot measure debated at policy summit | North Dakota Monitor

Thousands flock to tribal marijuana store in North Carolina, where cannabis is otherwise illegal, for launch of adult-use sales | Marijuana Moment