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Happy Friday, folks! Nicolás Rodríguez and Patricio Liddle here, ready to kickstart your weekend with a rundown of this week’s cannabis highlights. From California’s controversial hemp ban stirring up billion-dollar debates to Arkansas’ ballot battle and New Mexico’s Wild West of licensing loopholes, we’ve got plenty to unpack. So grab your favorite Friday treat, and let’s dive into the stories to prepare you for a well-informed weekend!

No Country For Old Hemp: Ban Puts Billions At Stake

California’s hemp ban ignites debate as industry leaders clash over its impact. Brandon Harshbarger, of Cheech & Chong Global Holdings, warned the state could lose billions, with hemp-derived THC drinks alone potentially worth over $1 billion annually. 

However, Bryan Gerber, CEO of Hara Supply, contends that banning unregulated hemp products is necessary to ensure public safety and stabilize the market, stating, “Upholding the highest standards of public safety should be a non-negotiable for cannabis regulators and the industry at large.”

PRESENTED BY HARA SUPPLY

Marijuana Reclassification Could Lead To A Revolution In The Industry – Is Your Business Ready To Meet Demand?

Marijuana may soon be viewed very differently in the eyes of the federal government. The proposed switch from Schedule I to Schedule III could have big impacts on the cannabis industry, including:

• Major tax reduction – cannabis companies currently have rates as high as 70%

• Research opportunities that lead to new product development

• Potential for new customers and market growth

• Possible improved access to banking services and financing

It won’t all be sunshine and rainbows – the shift will likely increase competition – but companies like HARA Supply could be well-positioned to thrive.

With 150,000 square feet of cone production across multiple facilities and 2,000 employees, HARA says it is ready to meet increased demand immediately and evolve with the industry and its partners. Check out https://harasupply.com/ for more information!

Locked Out: Equity Pioneers Shut Out of NY’s Booming Market

Despite New York’s booming $654 million cannabis market, over 200 equity license holders are tangled in red tape and funding issues, unable to secure compliant retail spaces or the financial backing needed to open doors. With the state’s social equity goals at risk, the stakes are high: without targeted support, these businesses could miss out on the market they helped legalize. 

Meanwhile, a New Frontier Data survey sheds light on consumer behavior, revealing a notable overlap between medical and recreational cannabis users. Medical-only consumers, who often spend over $400 per purchase, highlight the potential for higher revenue in this segment. 

As New York’s market continues to grow, understanding these consumer patterns—alongside the challenges faced by equity license holders—will be crucial for investors navigating the evolving cannabis landscape.

Keep Counting Those Signatures, Arkansas Court Says

The Arkansas Supreme Court ordered Secretary of State John Thurston to resume counting roughly 18,000 disputed signatures for a medical marijuana ballot initiative. This ruling follows a lawsuit from Arkansans for Patient Access after Thurston had initially rejected the signatures, citing concerns about paid canvasser certifications—which were not a cause for rejection in other initiatives. With a deadline looming, the court’s directive could alter the fate of Issue 3 in the November elections.

But the story gets even more interesting. Gov. Sarah Huckabee Sanders, who served as White House press secretary under Trump, now finds herself in the weeds of this debate. Appointing replacements for two recused justices, Sanders’ involvement has drawn attention, especially given her connections to anti-marijuana groups.

Apparently, Trump's newfound support for cannabis and his open support for adult-use legalization in Florida is not enough to change the minds of the GOP in Arkansas. Who’d have thought?

Licenses For All!

New Mexico’s cannabis industry is plagued by regulatory issues, largely due to a flawed licensing process. According to an investigation by KRQE, just nine inspectors oversee 3,000 businesses, and licenses are issued before any inspections occur, creating what critics describe as an ineffective “honor system.”

The Cannabis Control Division’s limited enforcement power, which delays action by 12 to 18 months, has fostered a thriving illicit market. Plus, only around 10% of operators consistently comply with reporting regulations, highlighting enforcement challenges.

Who needs inspectors when you’ve got trust? Well, for a thriving cannabis industry, a strong regulatory framework is what truly prevents exploitation and supports sustainable growth.

Weekend Weed Reads:

• Drivers Cannot Be Penalized For Cannabis Use If They're Not Impaired, Arizona Court Rules

• Teamsters Added 50,000 New Members In Less Than 3 Years, Partly Due To Cannabis Industry Growth

• Women Face Criminal Charges Over Pregnancy For Medical Cannabis Use, Record Number Of Prosecutions In Year After Dobbs

• Chronic Pain Patients Support Cannabis Access Expansion While Physicians Favor Restrictions, Study Finds

Our Writers Today

Nicolás holds a B.A. in International Relations, an M.A. in International Affairs, and an M.Phil in Public Policy. He is a doctoral student in Public and Urban Policy at The New School in New York City. After working for the United Nations in 2014, Nico pivoted his research to studying the relationship between the cannabis industry and economic development.

Patricio is a development economist with extensive experience in IT, finance, and banking. He writes about the economic and social opportunities obscured by over fifty years of drug prohibition. Beyond his professional expertise, Patricio is a committed advocate for social change, passionately working to promote harm reduction and reform drug policies.

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