D.C. stares down a bleak outlook for new growers and manufacturers
D.C. Council extended the 12-month conditional license period by a year last month, and the D.C. Department of Buildings (DOB) zoning released guidance in May that expanded where Type 1 medical manufacturer and cultivation licensees can operate, addressing the lack of real estate available. The guidance allows Type 1 businesses to locate in Downtown zones, D-3 to D-8, St. Elizabeth’s East zone, StE-1 to StE-18, and a few Mixed-Use and CG zones.
But since that change, only five new businesses have received placards, the next step in getting licensed. That means that the cultivation and manufacturer licensees have less than a 5% success rate in D.C.’s medical cannabis expansion as of July 2024. Before the zoning change, there had been no licensee that moved forward in the process from the conditional stage. The Outlaw talked with multiple applicants that have run into dead ends finding real estate that is appropriately zoned and the right size to produce enough product to justify investors.
Also from D.C.:
- Multi-state operator-owned Capital City Care dispensary and Capital City cultivator closed.
- D.C. hemp operators launched a campaign to save D.C. hemp from the Attorney Generals’ opinion
- ANC 4C protested Bloom @ North due to issues with the owner’s neighborhood lounge. They also voiced support for another cannabis shop that is better liked among neighbors despite it being served a cease and desist.
Maryland Cannabis Sales Exceed $1.1 Billion During First Year
Maryland Gov. Wes Moore (D) announced on July 3, 2024, that the state’s total medical and adult-use cannabis sales exceeded $1.1 billion during the adult-use market’s first year of operation. The Maryland Cannabis Administration (MCA) said that since the state launched its adult-use cannabis sales on July 1, 2023, adult-use cannabis sales have totaled more than $700 million and medical cannabis sales have reached nearly $400 million.
A year of hemp regulation changes in Virginia leave some distraught
An organic hemp grower said hemp and cannabis are dead in Virginia. He stopped growing hemp due to the drop in sales in the state. He said 90% of hemp retail is gone in the state after legislation closed the federal loophole that allows some cannabis products to be sold as hemp.mp and cannabis is dead in Virginia. He stopped growing hemp due to the drop in sales in the state. He said 90% of hemp retail is gone in the state after legislation closed the federal loophole that allows some cannabis products to be sold as hemp.
East Coast Roundup
FEATURED: New York approved over 100 new licenses last week. There are 729 approved licenses and 143 opened dispensaries. The state also made it easier for legal businesses to advertise and promote deals for consumers. Fifty-three percent of all adult-use licenses are social equity, and cannabis sales are increasing. Over 4,800 pounds of illicit cannabis has been seized by the state.
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Despite issuing many licenses, few New York dispensaries have opened. Red tape, broken promises and lawsuits are delaying the process, allowing the illegal market to thrive. Social equity applicants, especially, are facing significant hurdles.
Cannabis sales in Connecticut are declining, with recreational sales dropping slightly and medical cannabis sales falling significantly in June.
A defunct Illinois security company is suing New York state officials for $300 million. The company claims it was promised a no-bid contract for a large-scale cannabis surveillance project but the deal fell through after officials realized they wouldn’t personally profit from it.
Culture & More
A new federal report on improving cannabis testing accuracy focuses on cannabinoid content, moisture levels, and toxic elements in dried cannabis plants.
A new study suggests that legalizing recreational cannabis may lead to a decrease in intimate partner violence..
Around the Country
The first-ever social equity cannabis dispensary in the U.S. has closed. Blunts and Moore in Oakland, California, which opened in 2018, has shut down due to landlord issues.
Hawaii’s governor approved a bill establishing a task force to develop legislation aimed at expunging certain criminal records including cannabis-related offenses.
From the swamp
A new report from the Congressional Research Service suggests that Congress could reschedule or deschedule cannabis more quickly and with less legal risk than the current administrative process.
A House GOP committee passed a bill that would block the Justice Department from rescheduling cannabis.
The House cannabis banking bill received another republican cosponsor for 127 total. The Senate received another republican cosponsor for a total of 36.
