“Barely Surviving”: D.C. dispensaries face I-71 competition
D.C. Council’s Committee of the Whole held a roundtable on Feb.11, 2025, to address the struggling medical cannabis market and the persistent issue of unlicensed cannabis shops. The hearing comes as dispensary revenue declines, yet new licensed stores open weekly due to the 2022 medical cannabis market expansion, which aimed to integrate “gifting” shops into the legal market. D.C. remains unable to establish an adult-use market due to the Harris Rider. Licensed dispensaries, including those transitioned from the unlicensed market and legacy businesses, expressed frustration with the slow pace of unlicensed store closures. Rabbi Jeffrey Kahn, owner of Takoma Wellness Center, testified that despite legislation designed to address the problem, enforcement has been inadequate, leaving his business “barely surviving.”
- Alcoholic, Beverage & Cannabis Regulations (ABCR) Committee for ANC 1B meets Feb. 19 at 7 P.M.
- January 2025 metrics are out. Wash Hydro’s Bo Kenney spoke to the HillRag about difficulties in the legal market.
- One new medical dispensary opened, Aligned, opened according to the ABCA website (two others listed are not open yet).
- One new pending dispensary and manufacturer added to our members only map which tracks the latest license developments.
- Next ABC Board meeting Feb. 26 at 10:30 A.M., agenda, watch.
Maryland Considers Cannabis Lounges, Edible Sales at Events
Maryland lawmakers are considering legislation that would allow smoke-free cannabis consumption lounges and cannabis vendor events. The proposed bill would permit the Maryland Cannabis Administration (MCA) to issue licenses for on-site consumption (edibles and liquids only) and permits for cannabis events. Local governments would have the option to authorize or prohibit these establishments within their jurisdictions.
- Maryland’s social equity cannabis office is hiring a program analyst.
- The Advisory Board on Medical and Adult-Use Cannabis meets Feb. 20 at 2 P.M.
Virginia’s attorney general wants tougher enforcement on cannabis distribution
Virginia’s 2021 cannabis legislation, while reducing penalties and decriminalizing possession, has created confusion for law enforcement. The smell of cannabis is no longer probable cause for a search, making it difficult to determine legal vs. illegal amounts. This has led to a “loophole” exploited by out-of-state dealers who open shops, operate until challenged, and then relocate. Attorney General Miyares criticizes “social justice” prosecutors who refuse to prosecute even simple possession cases, creating a patchwork of enforcement. He hopes more conservative prosecutors will pursue charges like “intent to distribute” to deter illegal operations. While unable to directly shut down these stores, Miyares is using consumer protection laws to target them for issues like improper packaging and labeling.
ICYMI: ABCA publishes unlicensed transition guidance, deadline Mar. 31, D.C. 2024 sales below ‘22 and ‘23
East Coast Roundup
Independent labs and advocates claim mold contamination in Massachusetts cannabis products is widespread, despite the state’s limited acknowledgement and recent consumer advisory.
Gov. Shapiro has again proposed legalizing recreational cannabis in Pennsylvania, now estimating it will generate $535.6 million in the first year, a significant increase from previous projections, primarily due to licensing fees.
New York’s Office of Cannabis Management launched the Trade Practices Bureau to protect the state’s regulated cannabis market. This specialized unit will investigate violations, combat market abuses, and ensure compliance with cannabis laws, protecting smaller businesses from unfair practices.
A proposed New Jersey bill would allow medical cannabis dispensaries to sell recreational marijuana without local approval, aiming to counter towns’ resistance to hosting dispensaries. This legislation, sponsored by Senate President Scutari, also includes provisions allowing dispensaries to redesignate products for recreational sale.
Culture & More
A study in the American Journal of Preventive Medicine found that young adults, along with college-educated adults and those aged 30-39, reported reduced alcohol use after the opening of licensed cannabis retailers.
Snoop Dogg, a cultural icon and cannabis influencer, launched his own line of all-natural blunt wraps, Dogg Woods, at the CHAMPS Trade Show in Las Vegas.
Cannabis stocks are experiencing a downturn, with key investment funds showing significant losses, largely due to uncertainty surrounding federal policy. Despite promises of reform during the election, President Trump has yet to address cannabis publicly, creating doubt among investors.
Around the Country
A proposed wholesale cannabis tax in Michigan, intended to fund road repairs, is facing criticism from industry representatives who argue it would harm the already struggling market by increasing consumer costs and driving them back to the illicit market.
A new poll in North Carolina shows strong support for medical marijuana legalization, with 71% of likely voters in favor, including majorities across party lines and most demographics.
New Mexico lawmakers are considering a bill to create a new police agency under the state’s insurance regulator to enforce cannabis laws and combat illicit market activity.This comes amid concerns that current enforcement efforts are insufficient to address illegal operations that are harming the legal cannabis industry.
A Georgia mother is suing the Tennessee Department of Children’s Services (DCS) after her five children were removed from her custody following a traffic stop where less than five grams of marijuana were found. The lawsuit alleges that DCS workers took the children without a valid court order, violating the law and the mother’s civil rights.
From the swamp
A 28-year-old American man was arrested at a Moscow airport after cannabis-laced sweets were found in his luggage, and he is now facing drug smuggling charges in Russia.
Two participants have withdrawn from the DEA’s cannabis rescheduling hearing process, citing concerns about fairness and transparency, and a lack of faith in the proceedings. This withdrawal further complicates the already challenging effort to reschedule cannabis, leaving advocates with fewer voices in the debate.
Robert F. Kennedy Jr. was confirmed to lead the Department of Health and Human Services (HHS), but he was non-committal about pursuing the Biden administration’s efforts to reclassify cannabis
