The Outlaw talked with multiple medical retailers who said slow enforcement from The Alcohol Beverage and Cannabis Board is impacting their sales and could prevent them from staying open and could smother the current market expansion.
Multiple legal medical retailers said their sales were low due to competition with unlicensed gifting stores that are still operating. Despite ABCA receiving new enforcement powers to padlock stores this summer, not a single unlicensed store has been padlocked. ABCA did not provide the number of unlicensed stores its enforcement efforts have successfully shuttered when the Outlaw asked.
Mayor Muriel Bowser refused to answer questions about enforcement despite signing the bill in July that allowed padlocking of unlicensed stores by ABCA. Councilmember Kenyan McDuffie also refused to answer questions from the Outlaw despite sponsoring the same bill.
ABCA has sent a warning or a cease and desist to over 50 separate stores, but many have reopened the day after enforcement or never closed due to the length of the enforcement procedure and the lack of teeth behind it.
Read our complete breakdown or watch our reporter talk live about the issue with Cultivated.
- ABC only has no public meetings this week.
- The Cannabusiness Medical Cultivators Grant opened for conditional cultivator licensees.
- Monko opened back up after a breakin last week.
Low wages, poor working conditions spur unionization of Maryland dispensary
Employees at The Apothecarium dispensary in Cumberland, Maryland voted to unionize with UFCW Local 27. The unanimous decision, announced in August, came after significant complaints about working conditions. The UFCW chapter said it is a victory for workers seeking better wages, benefits, and working conditions in the burgeoning cannabis industry.
“Cannabis workers across the nation generate billions of dollars in sales for these rich corporations while receiving poverty wages in return,”said UFCW Local 27 President Jason Chorpenning. “Local 27 is dedicated to fighting for these workers, and all working people, to achieve a living wage, fair benefits and a better life. We are confident that we will work with these folks to get a great contract that prioritizes dignity, respect and fairness.”
Virginia Hemp Industry Hit with $12.4 Million in Fines
Virginia has cracked down on hemp-derived edible products. New regulations implemented in July 2023 have led to strict enforcement and hefty fines for businesses violating the state’s rules. Over a year, state agencies inspected hundreds of businesses, issuing thousands of violations and millions in penalties. While some penalties have been reduced for businesses that quickly complied, the state is taking a tough stance on non-compliant hemp products.
- A Massachusetts medical cannabis company, the Cannabist Company, is selling its Virginia operations, including cultivation, production, and six dispensaries, to an Illinois company for $90 million.
ICYMI: Catch up on last week’s newsletter.
East Coast Roundup
FEATURED: New York City faces setback in crackdown on illegal cannabis sales. A Queens store shut down for allegedly selling marijuana without a license has been ordered to reopen by a judge. The ruling criticized the city’s process for closing businesses without due process, potentially hindering Mayor Adams’ “Padlock to Protect” initiative aimed at combating unlicensed cannabis shops.
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Maine regulators rejected a proposal that would have allowed utility companies to report suspected illegal cannabis cultivation operations to law enforcement based on high electricity usage.
Jersey City, New Jersey lost another battle in its attempt to prevent police officers from using cannabis.
Culture & More
A new poll found that nearly 80% of cannabis consumers in states with legal cannabis purchase most or all of their cannabis from licensed retailers.
Cannabis multistate operators (MSOs) are taking a risky gamble by challenging Section 280E of the tax code.
Around the Country
Colorado’s largest cannabis cultivator, Mammoth Management, is suing Bonanza Cannabis Co. for allegedly infusing their products with harmful, hemp-derived THC and using dangerous chemicals in their gummies and vapes.
Ohio’s first day of adult-use cannabis sales was a huge success. Revenue tripled compared to previous days, and product prices were higher than anticipated.
California authorities seized over 2.2 million illegal cannabis packages in a major crackdown.
From the swamp
Driven by potential federal cannabis reform, including banking, rescheduling, and tax changes, cannabis companies are spending millions of dollars to influence lawmakers.
Shrooms
Despite promising clinical trial results showing significant improvement in PTSD symptoms for patients treated with MDMA-assisted therapy, the FDA denied approval, citing insufficient data.
