Cannabis

California or New York? Which Has The Biggest Marijuana Mess?

Published

2 years ago

June 15, 2023

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Colorado, Illinois, Oregon, Michigan, and seventeen other states have rolled out recreational marijuana. None with the ongoing drama of California and New York. The two have provided fodder for industry business media (and mainstream media also), the gnashing of teeth for investors, tears and anguish for legal business owners and confused consumers.

The legal marijuana industry was worth $28 billion in 2022, with an expectation to rise in 2023. Currently, 23 states have recreational and 40 have medical with over 48 million Americans consuming cannabis annually. It is becoming a big business, and the two most important states are California and New York. Both undercut the industry, feed drama and stymie federal legalization.

marijuana dispensary — Photo by smodj/Getty Images

California is the original major player and home of the largest legal market in the country, if not the world. California is estimated to have done $5.3 billion in 2022, and that is just what is reported. The state is home to Medmen, High Times, and more players who have blended into the mainstream media. Medmen has even been mocked by the show South Park. But what really undercuts the California market is the taxes. Early on, everyone saw it as a cash cow and everyone wanted a piece of the action. Local, regional and state governments dove deep into the industry, all demanding a chunk.

In California there is an Excise Tax, A State Sales Tax, A Business Tax, and a Local Tax. The revenue has been good for the state, but they forgot to do one thing. They haven’t built a system to eliminate the unauthorized (illegal) companies, so customers and businesses have reverted to “old school” black markets around the state.

California’s legal market lost nearly one-quarter of its total growing area after the start of 2022. Legal high priced indoor grow competes with cheap outdoor grow. Governor Newsom, the state’s legislature and the industry forgot customers care about price. For the first time, legal sales went backwards in the state as use stayed the same or trended up.

Green Market Report broke the news about California-based Glass House Brands Inc. being charged as “one of the largest, if not the largest, black marketers of cannabis in the State of California, if not the country,”. They have been shipping cannabis across state lines, according to a new lawsuit filed by one of the company’s retail competitors.

Where are they shipping the hot goods? Some are going to New York State, which has been rolled with its own pandemonium.

New York State converted from medical to fully recreational in 2021, but the rollout happened in 2022 after a chaotic total overhaul of original plan that had mass buy in from existing players. Currently, New York City has about 1,500 unlicensed retailers operating with the state working to close several a month. These stores sell legal, semi-legal, local illegal and California illegal products each day.

This week, the New York Cannabis Control Board met and managed to avoid significant action. One of the agenda items was the resignation of Reuben McDaniel who as CEO of the Dormitory Authority of the State of New York (DASNY) was in a unique, if not sticky, situation. McDaniel had not won friends in his helping roll out legalization.

As Green Market Report shared “The members opened the meeting with the unanimous approval of 36 new conditional adult use retail dispensary permits, bringing the total number of retail licensees to 251. The new licensees included seven in the Finger Lakes Region, which had previously been stalled by litigation. But as of Thursday, there are only 13 operational retailers, OCM staff noted, with two more set to open in coming days in the Bronx and Syracuse. Getting even more open as soon as possible is one of the OCM’s top priorities. Chief Equity Officer Damian Fagon told the board his office is sifting through more than 300 dispensary location applications as quickly as possible, with 146 that have already been approved.”

how the costco of cannabis will upend marijuana black market — Photo by Yarygin/Getty Images

That would be 146 legal stores statewide versus 1,500+ illegal stores in NYC who are loose on rules and taxes. The 1,500+ stores have been doing a solid business to the population. Unfortunately for the legal growers and product makers, those customers are unreachable thanks to New York Cannabis Control Board.

New York and California are important markets and key to federal approval. In an ever-changing world there seems to be constant, government trend to overlook the vox populi (popular sentiment or opinion).

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Cannabis

White House Finally Comments On Marijuana Industry

Published

56 minutes ago

April 1, 2025

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Part of the cannabis industry supported the new president, betting he was going to move and move quickly on cannabis – the White House finally commented.

The cannabis industry has been a boon for consumers, medical patients, veterans and legal states, but for the thousands of mom and pop businesses is has been a roller coaster. With a huge demand, it would seem to be easy money, but the federal, tax, and banking restrictions have made it difficult to grow and expand. Part of the industry were all for the new administration assuming they would support positive change, but many in the new cabinet and the House Speaker Mike Johnson are foes. Now the White House finally comments on marijuana industry…and it doesn’t show a clear path.

The administration’s current stance on marijuana reform is marked by inaction, despite campaign promises and earlier signals of support for cannabis-related reforms. A White House official recently confirmed that “no action is being considered at this time” regarding marijuana policy, leaving advocates and industry stakeholders uncertain about the administration’s priorities.

During his campaign, the resident expressed support for rescheduling marijuana under the Controlled Substances Act (CSA), which would move it from Schedule I to Schedule III, easing restrictions on medical use and enabling cannabis businesses to access banking and tax benefits. However, since taking office, no concrete steps have been taken to advance this initiative. A DEA hearing on rescheduling, initially planned for January 2025, was postponed due to procedural appeals and remains unscheduled.

The president has also voiced support for state autonomy in cannabis policy and endorsed state-level legalization initiatives, such as Florida’s failed 2024 ballot measure for recreational marijuana. While this reflects a more favorable stance compared to his first term, his administration has yet to prioritize federal reforms like the SAFE Banking Act, which would facilitate banking services for cannabis businesses. Efforts to include such measures in a government funding bill late last year were unsuccessful.

The delay in federal action has significant implications for the cannabis industry. Rescheduling marijuana could alleviate financial burdens by eliminating restrictions under IRS Code Section 280E and promoting medical research. However, the stalled process leaves businesses navigating regulatory uncertainties and limited financial access.

While stakeholders continue lobbying for reform, the administration appears focused on other priorities such as immigration and foreign policy. Advocates hope the President will leverage his influence to advance cannabis reform, but for now, the issue remains sidelined. Until then the industry struggles and waits.

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Cannabis

This State’s Cannabis Revenue Keeps Pouring In

Published

1 day ago

March 31, 2025

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States are starting to scramble with looming budget deficients, but marijuana is a boon to some – especially one state.

The new federal administration is revamping how the government operates. With Doge, they are changing agencies and reducing services and support of states, which has left budget deficients in many. But some states have legal marijana and it has been a boon, for like alcohol…people are still consuming. States who are fully legal are making more money on weed than booze and this state’s cannabis revenue keeps pouring in. Missouri, the show me state, is being shown unexpected revenue.

RELATED: Mike Johnson And Marijuana

“Due to a strong cannabis market and effective, efficient regulation of that market,” Amy Moore, director of the Missouri Division of Cannabis Regulation, told The Independent this week, “the funds available for the ultimate beneficiaries of the cannabis regulatory program continue to outpace expectations.”

Funds will help veterans and other key projects. The other benefit is as seen in data from legal states, teen use is down so it frees up some other funds. Legal states are seeing benefits from legal cannabis including lower teen use and crime reduction.

States with legal cannabis are experiencing a significant boost in tax revenue, surpassing those generated by alcohol sales. This trend highlights the economic benefits of marijuana legalization, as cannabis markets expand and mature.

In California, cannabis excise taxes have consistently outperformed alcohol-related taxes, bringing in over double the revenue. Colorado has seen even more striking results, with marijuana tax revenues totaling seven times those of alcohol. Similarly, Massachusetts has collected more tax revenue from marijuana than alcohol since fiscal year 2021, marking a notable shift in state finances.

Nationally, legal cannabis states generated nearly $3 billion in excise taxes on marijuana in 2021—20% more than alcohol taxes. By 2024, total adult-use cannabis tax revenue exceeded $20 billion, with states like Illinois and Washington reporting record-breaking contributions. Illinois alone collected $451.9 million from cannabis taxes in fiscal year 2022—one-and-a-half times the revenue from alcohol.

The funds are being put to good use. States like Illinois are channeling marijuana tax dollars into mental health services and community programs, while Colorado has invested nearly $500 million into public education. California has allocated millions to nonprofits addressing the impacts of the war on drugs.

This growing revenue stream underscores the potential of cannabis legalization to support vital public services and bolster state economies. As more states embrace regulated marijuana markets, the financial benefits are expected to continue flourishing.

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Cannabis

Mixed Messages From The Feds About Cannabis

Published

4 days ago

March 28, 2025

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The federal administration is all over the board around fed cannabis policy…and millions of patients are worried.

The industry employees over 440,000 workers at all lives and is driven in a large part by mom and pop businesses. Millions use medical marijuana for health issues ranging from chronic pain to sleep. But there are mixed messages from the feds about cannabis, and people are very worried. The federal government’s stance on marijuana has become increasingly complex, as recent developments show conflicting approaches to the drug’s potential benefits and risks. On one hand, there’s a push for research into medical marijuana for veterans, while on the other, a campaign against cannabis use is being launched.

The juxtaposition of initiatives highlights the federal government’s inconsistent approach to marijuana policy. While some departments are exploring the potential benefits of cannabis, others are actively working to discourage its use. This dichotomy is further exemplified by ongoing legislative efforts. For instance, Rep. Brian Mast (R-FL) has reintroduced the Veterans Equal Access Act, which would allow VA doctors to recommend medical marijuana to patients in states where it’s legal. Meanwhile, documents from an ongoing lawsuit suggest that the DEA may have weighted the marijuana rescheduling process to ensure rejection of moving the drug from Schedule 1 to Schedule 3.

The Department of Defense (DOD) has allocated nearly $10 million in funding for research into the therapeutic potential of MDMA for active-duty military members. This initiative, driven by congressional efforts, aims to explore MDMA’s effectiveness in treating conditions such as post-traumatic stress disorder (PTSD) and traumatic brain injury (TBI). Rep. Morgan Luttrell (R-TX) expressed pride in this development, stating that it could be a “game-changer” for service members battling these combat-related injuries.

Additionally, a bipartisan effort in Congress has been pushing for VA research on medical marijuana for PTSD and other conditions affecting veterans. The VA Medicinal Cannabis Research Act, introduced in both the Senate and House, would mandate studies on how cannabis affects the use of addictive medications and impacts various health outcomes for veterans.

In stark contrast to these research initiatives, the Drug Enforcement Administration (DEA) has partnered with an anti-cannabis nonprofit to launch a social media campaign targeting young people. The campaign, set to run ahead of April 20 (4/20), aims to “flood” Instagram with anti-cannabis content. The DEA is offering monetary incentives to students for creating and posting anti-THC videos, with payments ranging from $25 to $50 depending on the type of content produced.

This approach has raised eyebrows, as it seems to contradict the growing acceptance and legalization of marijuana across the United States. Critics argue that such campaigns may be out of touch with current societal trends and scientific understanding of cannabis.

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