Coast-to-coast corporate cannabis is clueless
America's controversial cash crop stinks in more ways than one.
Money, Money, Money
What do California and Florida have in common? They’re coastal US states with legal cannabis industries, sort of. Recreational cannabis has been legal in California since 2016. Florida, on the other hand, has only legalized medical cannabis. That said, here’s where things get interesting.
Thanks to a loophole in the 2018 Trump farm bill, hemp-derived delta-8 THC is being legally sold across the United States as we speak. Additionally, President Biden signed a stopgap bill to extend the farm bill until September 2024. In similar news just a few months ago, the Department of Health and Human Services recommended the easing of federal restrictions on cannabis. To summarize, not only has a weaker version of the famous drug been out on the legal market for years now, but the government is actively advising the rest of the government to reschedule it altogether, so all eyes are on the DEA now.
As it stands, the US cannabis industry is worth $5 billion annually, but despite all the buzz, the U.S. Hemp Roundtable and well over two dozen other cannabis organizations have submitted a list of priorities loaded with a blend of pro- and anti-regulatory proposals to House and Senate committees. Further, US states have begun passing laws against hemp-derived products while hemp companies hit back with lawsuits.
California Pipe Dreamin’
Just last month, California Governor Gavin Newsom signed a set of cannabis-related bills into law, an ongoing project to streamline administrative processes and provide some relief to the state’s beleaguered cannabis industry. California’s legal cannabis market has faltered significantly because of the state’s excessive economic regulations. Los Angeles cannabis fees & fines alone run thousands to tens of thousands each while San Francisco’s permitting process takes nearly a year and $5,000 minimum if you’re not an “equity applicant.”
Having worked in the Silicon Valley cannabis industry for a handful of years, I learned a thing or two about bad bureaucracy myself. When I was working in retail cannabis, customers were regularly paying over a third in taxes out the door. Madness. As one would expect, it’s far cheaper to buy from the black market where taxes, fines, and fees are not factored into the prices. As such, the black market in California continues to exist. A couple of black market growers I’ve met and spoken to before have told me similarly. With all that said, in just fiscal 2023 alone, over $100 million worth of cannabis was seized in California across less than 100 search warrants.
The Sunshine State
Martha Bueno, a cannabis entrepreneur and libertarian activist out of Miami-Dade County, spoke with me about the hurdles she’s faced while trying to expand her business ventures out in Florida. In short, the Florida government is pushing for more industry regulations, even though it devastates small business owners like Martha who are trying to prosper in the market. The corporate cannabis big business special interests who donate to Florida politicians will stand a better chance of weathering the regulatory storm. Martha made sure to call out some of them by name. Not long thereafter, she posted on X to elaborate on the matter.
Yes. So the licensing for medical cannabis in Florida was originally given to 5 companies. Then they got sued and they gave out more licenses. Now there’s 22, and they’re in the process of giving out another 22. I was going to apply with my farm, but the cost put me out of the market. They force you to have locations secured, business plans that show you have millions secured to fund your operation, security plans like Ft Knox, and more.
…the legislators particularly State Senator Colleen Burton of Lakeland and State Representative Will Robinson of Manatee County.
Trulieve is also sponsoring recreational cannabis initiatives by which you can only buy cannabis from them, the license holders. They donate large quantities to DeSantis.
Martha Bueno
WUSF: Administrative law judge set to rule on Florida's medical marijuana license fee
State Senator Colleen Burton, funded by pharma & the booze industry, and State Representative Will Robinson, also funded by the booze industry, sponsored the 2023 hemp bill loaded with stricter hemp product regulations. Last March, Burton’s support for it drew the concerns of disabled veterans and business owners involved with cannabis.
So, I need about 100 to 200 milligrams a day just to keep with the pain and the mental health. So doing something that's two milligrams is not going to help me.
…
So as a combat veteran that fought in the Iraq war 20 years ago, I've been struggling with PTSD and mental health.
Hemp allows me to focus, allows me to stay present and not allow my mind to get lost in the war. So, Hemp has been a big part for my mental health, my recovery.
U.S. Marine Corps Veteran Pablo Bicca
Most hemp customers are going to become criminals; most hemp customers are going to start buying online and get it shipped here from out of state. They're going to go to the black market, going to go to drug dealers. They're not going to be able to magically afford medical marijuana.
Carlos Hermida of Chillum Hemp and Dispensary
Both politicians have hinted that they will continue their push for more hemp regulations in 2024.
In other news, Florida Supreme Court justices have until April 1st, 2024 to determine whether or not a proposed constitutional amendment to legalize recreational cannabis use for adults 21+ should be allowed to go up for a vote next November. The proposal is bankrolled by Trulieve, one of Florida’s largest medical marijuana businesses. More on them later. Florida Attorney General Ashley Moody’s office and the Florida Chamber of Commerce both support blocking the proposal, arguing it to be ambiguous and misleading.
The attorney general opposes ballot placement because we think, in several ways, this ballot summary is misleading.
…
What’s really going on here is that the ballot summary is playing on a desire of voters to see greater competition in the marketplace. There have been public complaints that the market is monopolized and thereby raising prices.
…
[The proposal] applies to Florida law; does not change, or immunize violations of, federal law.
I think that it is a very easy circumstance for voters to be confused about this.
Jeffrey DeSousa, chief deputy solicitor general
The Constitution is not the place for impulsive policy change. Legislation on tough questions is the constitutional province of the Legislature.
Samuel Salario, an attorney for the Florida Chamber
In Samuel’s mind, the proposal would "immunize sanctions" for cannabis use and grant medical marijuana operators "effective regulatory capture" over the market. The judges didn’t seem to buy what they were selling, but Florida won’t know for sure until next year.
The DeSantis Deal
Governor DeSantis of Florida doesn’t like pot, yet one of his biggest donors is an organization trying to legalize it. Martha was right, by the way; Trulieve helped DeSantis directly. Anyway, here’s how this stuff went down.
Trulieve, a medical cannabis company that gave DeSantis $125k for his 2022 campaign, also gave money to Smart & Safe Florida, a political committee.
Smart & Safe Florida gave money to Axiom and Vanguard, consulting firms run by a prominent pro-Republican strategist.
Never Back Down, a pro-DeSantis super PAC, paid Axiom and Vanguard for their help with the DeSantis campaign.
Axiom Strategies and Vanguard Field Strategies, firms helmed by prominent Republican strategist Jeff Roe, have been paid nearly $29 million by an organization pushing a 2024 ballot initiative that would legalize recreational marijuana. A DeSantis-aligned attorney general is fighting their work, and the governor himself has said he broadly opposes legalization.
…
Axiom and Vanguard have been paid over $25 million by the pro-DeSantis Never Back Down through the end of June, making them the super PACs’ highest-paid vendors. Never Back Down oversees much of the DeSantis campaign, standing up get-out-the-vote programs, hosting events he appears at and even providing transportation for the governor.
…
The recreational marijuana initiative, which has been funded largely by marijuana giant Trulieve, is viewed by Florida Democrats as a potential vehicle for reviving their moribund status in the state. Party officials and volunteers have been working to gather signatures for it.
…
Since last year, Axiom and Vanguard have emerged as the largest vendors for Smart & Safe Florida, the outfit that is spearheading the pot initiative, which would allow for adults 21 years of age and older to obtain marijuana for non-medical use. The firms combined account for more than 70 percent of the total amount spent by the group.
Politico
Trulieve has contributed all but $124.58 of the money raised by the political committee Smart & Safe Florida, which is leading the initiative. The committee had spent $39.545 million as of Sept. 30, the report posted on the state Division of Elections website showed.
CBS
$125,000, Trulieve Inc, cannabis dispensary
Mother Jones
As inner disputes within the DeSantis team have grown, Never Back Down’s CEO Chris Jankowski has recently resigned.
Never Back Down’s main goal and sole focus has been to elect Gov. Ron DeSantis as president. Given the current environment it has become untenable for me to deliver on the shared goal and that goes well beyond a difference of strategic opinion. For the future of our country I support and pray Ron DeSantis is our 47th president.
Chris Jankowski
Is DeSantis’s presidential hopes going up in smoke? I think so, but you be the judge. As for the cannabis industry moving forward, I can’t wait to see the day that more grubby government and corpocratic fingers are yanked out of the economic cannabis pie, however so long as the drug remains stigmatized in America, disabled veterans and entrepreneurs alike will continue to suffer the consequences of complacency and corruption. Thanks for reading.