Yutong Jiang contributed to this newsletter.
Ex-owner of D.C. dispensary suing I-71 businesses indicted for almost $1M in federal tax evasion
Jennifer Brunenkant, owner of D.C. cannabis dispensary Herbal Alternatives II, has been indicted on federal tax evasion charges, including failing to report millions in revenue and evading roughly $800,000 in income taxes, as well as $130,000 in employment taxes. She allegedly hid revenue through multiple bank accounts and falsely claimed tax payments in Kentucky. Brunenkant’s dispensary is part of a lawsuit against unlicensed “I-71” shops, and while ownership transfer was approved in March 2024, she’s still listed as a beneficial owner. Her brother, the lawyer representing the plaintiffs suing over 100 I-71 shops, declined to comment. Brunenkant faces potential prison time and fines, and her dispensary remains operational.
Emergency legislation passed to solidify unlicensed D.C cannabis shop closure deadline
D.C. Council passed emergency legislation to tighten enforcement against unlicensed cannabis and Schedule I substance sales, including immediate action against those selling drugs like psychedelic mushrooms. It sets an April 1, 2025 deadline for all unlicensed shops, allows action against licensed dispensaries posing risks and expands testing authority. The legislation aims to protect public safety and level the playing field for legal businesses, but requires mayoral approval by March 25, 2025, and will only last 90 days.
- Arrests continue in unlicensed D.C. cannabis shop closures
- Cannabis shops burglarized in DC, police search for suspects
- ABC Board Meeting Mar. 12 at 10:30 A.M., watch, agenda.
Curaleaf sued by budtenders over tip distribution
Curaleaf, a major cannabis dispensary chain, is facing a class-action lawsuit from its budtenders in Maryland. They allege the company illegally distributes tips to managers, violating the Fair Labor Standards Act. The lawsuit claims that leads, who supervise budtenders, receive a larger portion of tips despite not performing the primary customer-facing work. Curaleaf denies the allegations, stating their tipping policies are fair and compliant with the law.
Opinion: Youngkin’s Cannabis Veto Could Redirect $3.5 Billion to Cartels and Gangs
Erich Griffin-Mauff wrote that Virginia Governor Glenn Youngkin’s expected veto of cannabis legalization might unintentionally support illegal markets, channeling about $3.5 billion each year to Mexican cartels and Chinese criminal organizations. Supporters of legalization say it would keep money within local communities and lessen the impact of organized crime.
Jushi Holdings, a multistate cannabis company with operations across cultivation, processing, and retail, reported. Virginia retail revenue rose by $1.9 million in Q4 year-over-year, and by $7.2 million for FY 2024, driven by strong performance and new store growth.
East Coast Roundup
Massachusetts Cannabis Control Commission reports that the cannabis industry in the state lacks diversity, with 77% of senior-level positions held by white individuals. Despite a mandate to ensure full participation of communities disproportionately harmed by the war on drugs, the industry still lags behind demographic trends.
New York state invested $50 million in an unsuccessful effort to establish 150 dispensaries. Governor Kathy Hochul’s strategy for recovering these funds has raised concerns.
Connecticut lawmakers have reintroduced a bill to decriminalize psilocybin, making possession of up to half an ounce punishable by a $150 fine without jail time.
The first state-sanctioned overdose prevention center (OPC) in the US has opened in Providence, Rhode Island, operated by Project Weber/RENEW and supported by VICTA. The OPC provides a safe space for people to use drugs under supervision, with trained staff and overdose-prevention resources available.
Culture & More
Researchers highlight the potential of cannabis-derived compounds, offering significant pain relief without typical psychoactive side effects. The findings could open pathways to safer, non-addictive treatment alternatives for chronic pain management.
A recent NuggMD poll reveals that approximately 66% of cannabis consumers have reduced their cannabis spending due to broader economic inflation. This trend underscores the financial pressures faced by consumers, affecting their discretionary spending on products like cannabis. Minnesota State Patrol tested a saliva-based THC analyzer, similar to a Keurig, in squad cars as part of a pilot program. This comes as cannabis use and legalization increase, raising concerns about driving under the influence.
Around the Country
A Texas state senator has proposed expanding the state’s medical cannabis program, while simultaneously pushing to ban hemp-derived THC products. The proposal aims to clearly delineate medicinal cannabis from unregulated hemp markets.
North Carolina’s House Speaker indicated that Republican legislators might show increased openness toward medical cannabis legalization this legislative session, signaling a potential shift in conservative attitudes toward cannabis reform.
California authorities confiscated over $500 million worth of illegal cannabis products in 2024. This underscores the ongoing efforts to tackle the state’s robust unlicensed cannabis trade, despite widespread legalization.
A new lawsuit seeks to overturn Oregon‘s recently implemented cannabis labor peace law. It argues that the regulation unfairly imposes unionization conditions on cannabis businesses, potentially violating constitutional rights.
The Kentucky Senate advanced a bill to regulate cannabis-infused beverages, also known as “weed water,” with a 29-6 vote.
From the swamp
FEATURED: The DEA’s delayed cannabis rescheduling hearings are causing controversy, with allegations that the agency favored anti-cannabis groups in witness selection. Pro-reform parties are frustrated by the perceived bias, while others believe the delay allows for stronger arguments. Rescheduling would significantly impact the cannabis industry by reducing tax burdens and improving financial access, but the process remains uncertain under the current DEA leadership.
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A White House staff member invited Howard Wooldridge, a veteran drug policy reform advocate, to submit a proposal advocating for federal cannabis legalization. Wooldridge plans to emphasize the political advantages for the Trump administration in ending federal prohibition. He committed to submitting the proposal by the end of last week, collaborating with conservative cannabis lobbyist Don Murphy.
The National Highway Traffic Safety Administration issued a notice for technical assistance on impaired driving countermeasures, highlighting rising concerns about drug-impaired driving due to the national opioid epidemic, varying state legalization of cannabis, and widespread prescription drug use
