“What once was a success story has now left a trail of failed businesses and cash-strapped entrepreneurs in its wake. Regulatory burdens, an oversaturated market and increasing competition from nearby states have all landed major blows, leaving other states with newer marijuana markets scrambling to avoid the same mistakes.
For years, Colorado’s marijuana market minted successful local entrepreneurs who bootstrapped small businesses into national brands. The market drew aspiring cannabis professionals from across the country, whether ambitious college grads with a business idea or investors looking to get in on the green rush.
In 2020, the market soared to $2.2 billion. But just three years later, sales had plummeted to $1.5 billion, leading to layoffs, closures and downsizing. The market downturn has spelled trouble for state finances too: Colorado took in just $282 million in cannabis tax revenues in the last fiscal year, down more than 30 percent from two years earlier.
A messy assortment of factors has led to the pioneering industry’s struggles. A supply glut caused weed prices to plummet in the wake of the pandemic. The spread of cheap, largely unregulated intoxicating hemp-derived products further heightened competitive pressures. And marijuana remains federally illegal, subjecting operators to sky-high taxes and costly regulations.”
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“more than any other factor, Colorado’s market has been sapped by the rapid spread of legalization across the country. Neighbors New Mexico and Arizona are among the 24 states with their own adult-use legal marijuana markets, wreaking havoc on the business plans of dispensaries on Colorado’s southern border. Tourists who once flooded the state for the opportunity to legally experience Rocky Mountain highs have largely disappeared as the novelty has worn off. Even Texans aren’t driving north to buy weed anymore, satisfied with the proliferation of intoxicating hemp products in their own state.”
“The proposed rule, which will be subject to 60 days of public comment before it is finalized, would move marijuana to Schedule III, which includes prescription drugs such as ketamine, Tylenol with codeine, and anabolic steroids. But that does not mean marijuana will be legally available as a medicine, which would require regulatory approval of specific cannabis-based products.
With marijuana in Schedule III, state-licensed cannabis suppliers will remain criminal enterprises under federal law, albeit subject to less severe penalties. Although an annually renewed congressional spending rider bars the DOJ from interfering with state medical marijuana programs, prosecutorial discretion is the only protection for businesses that serve recreational consumers.
The federally illegal status of state-approved marijuana businesses discourages financial institutions from serving them, since doing so could invite potentially devastating criminal, civil, and regulatory consequences. Moving marijuana to Schedule III will not solve that problem either.”
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“The president, citing old-timey “gateway drug” concerns, has steadfastly resisted attempts to resolve this conflict by repealing the federal ban on marijuana. Even while condemning the injustice inflicted by a “failed approach to marijuana,” he is sticking with it.”
“Drug cartels and human traffickers aren’t the only people dodging border patrol officers these days in southern New Mexico. The state’s cannabis businesses — which operate legally under state law — are also desperately trying to evade border checkpoints.
That’s because U.S. Customs and Border Protection officers have seized more than $300,000 of state-licensed cannabis in New Mexico in the last two months. These seizures occurred at border patrol checkpoints, some of which lie as far as 80 miles from the U.S.-Mexico border.
The crackdown has created tension between the Biden administration and Democratic Governor Michelle Lujan Grisham — who championed marijuana legalization and touted it as an economic boon for the state. The enforcement actions are occurring as the Justice Department is preparing to loosen federal restrictions on marijuana, which would mark the biggest liberalization of drug policy in more than half a century.”
“New York’s rollout of marijuana legalization has been a “disaster,” as Hochul conceded in January. “Every other storefront” is an unlicensed pot shop, she told The Buffalo News. “It’s insane.”
That disaster has frustrated would-be retailers, left farmers in the lurch, played havoc with tax revenue projections, and made a joke out of any expectation that New York, by learning from the experience of states that legalized marijuana earlier, would do a better job of displacing the black market. The insanity that Hochul perceives is a product of bad decisions by politicians who should have known better and obstruction by regulators who sacrificed efficiency on the altar of diversity.
Unlike states such as New Jersey, where voters approved legalization in 2020, and Maryland, where a similar ballot initiative passed two years later, New York did not initially allow existing medical dispensaries to start serving the recreational market. Its slow and complicated licensing process, which was skewed by an “equity” program that prioritized approval of applicants with marijuana-related criminal records or their relatives, is maddeningly hard to navigate.
Those preferences invited lawsuits by people who were excluded, which further delayed approval of licenses. Guidance and financial help for people struggling to jump through the state’s hoops never materialized. And as in other states, high taxes and burdensome regulations have made it hard for licensed businesses to compete with unauthorized dealers.”
“it was clear that Biden did not expect HHS to confirm its previous position that marijuana belongs in Schedule I. He expected HHS to recommend that marijuana be moved to a lower schedule, which is what it ultimately did. As the details of the HHS recommendation clarify, that decision was not based on new scientific evidence. It was based on a reinterpretation of the criteria for Schedule I that could have been implemented much sooner if HHS and the DEA had been open to it, or if a previous president had encouraged it.”
“President Joe Biden expanded a categorical pardon..for low-level marijuana offenders convicted on federal lands and in the District of Columbia”
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“Biden also commuted the sentences of 11 nonviolent drug offenders serving sentences that were much longer than they would have been if the prisoners had been sentenced today. They were convicted of cocaine and methamphetamine offenses.”
“The new law allows adults over 21 to possess up to 2.5 ounces of marijuana and grow up to six plants. The measure creates a Division of Cannabis Control, which is responsible for setting up and regulating the adult-use cannabis market.”
” It’s become a stink at the U.S. Open: a pungent marijuana smell that wafted over an outer court, clouded the concentration of one of the world’s top players and left the impression there’s no place left to escape the unofficial scent of the city.
While the exact source of the smell remained a mystery Tuesday, one thing was clear: Court 17, where eighth-seeded Maria Sakkari complained about an overwhelming whiff of pot during her first-round loss, has become notorious among players in recent years for its distinctive, unmistakable odor.
“Court 17 definitely smells like Snoop Dogg’s living room,” said Alexander Zverev, the tournament’s 12th-seeded man who won his opening match on the court Tuesday. “Oh my God, it’s everywhere. The whole court smells like weed.”
Stung by stories in the wake of Sakkari’s match Monday that made it appear the U.S. Open’s stands are the sporting equivalent of a Phish concert, the United States Tennis Association conducted its own investigation, of sorts, to weed out the source of the smell.
Spokesman Chris Widmaier said the USTA questioned officials and reviewed video of the midday match and found “no evidence” anyone was smoking pot in the stands of Court 17, leading to speculation it may have come from Corona Park just outside the gates of the intimate stadium court.
And he may not be just blowing smoke. Sakkari herself suggested just that when she complained to the chair umpire while up 4-1 in the first set: “The smell, oh my gosh. I think it’s from the park.”
After her 6-4, 6-4 loss to Rebeka Masarova, Sakkari told reporters: “Sometimes you smell food, sometimes you smell cigarettes, sometimes you smell weed. I mean, it’s something we cannot control, because we’re in an open space. There’s a park behind. People can do whatever they want.”
Flushing Meadows security staffer Ricardo Rojas, who was working the gate outside Court 17 on Monday, said he took a break in the park around the time of Sakkari’s match and “there was definitely a pot smell going on.” But he noted that while he enforces a strict no-smoking policy inside the USTA’s Billie Jean King National Tennis Center, the park is “outside my jurisdiction.””
“In a 2020 review of relevant studies published since the mid-1980s, the authors called out many of these studies for weak methodology. In particular, many researchers had failed to compare the outcomes they were measuring against any kind of a standard that would account for age and parental educational level. (That is: What if the kids of those who used cannabis during pregnancy were born to parents with lower levels of education, which could account for some differences?)
The review authors concluded that overall, “prenatal cannabis exposure is associated with few effects on the cognitive functioning of offspring.” What’s more, they noted, even when abnormalities were identified, almost all were still within the range of normal.”
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“Despite the imperfect data, Mark suspects the risk of fetal harm with prenatal cannabis use is high enough to support recommending against purely recreational use.