California’s cannabis tax shortfall 💰

“It’s very disruptive. So I think at this point in time, we certainly welcome that industry. We welcome the work that had been done. And listening to the folks who are in this, this came out of left field to them. [They were] unprepared for it, and I think we’re still trying to understand what that means,” Minnesota Governor Tim Walz said about the hemp ban that was part of the budget bill that re-opened the federal government in November. 

Walz told reporters that his state was exploring how it could preserve its own hemp market which exploded shortly after the passage of the 2018 Farm Bill.

California expects $96 million shortfall in projected cannabis tax revenue 💰

The California Legislative Analyst's Office released a report showing that the state expects a total of $727 million in cannabis tax revenue for 2025. This amounts to a $96 million shortfall of the state’s projections in May’s annual budget. The state pulled in $177 million between July and October, a record quarter, but that time period includes the 19% excise tax rate that was in effect until a subsequent bill knocked the rate back down to 15%

Libertarian groups petition SCOTUS to overturn federal prohibition 🧑‍⚖️

The Cato Institute and the Pacific Legal Foundation filed amicus curiae briefs with the U.S. Supreme Court, as it plans to consider Canna Provisions et al v. Bondi at al. The organizations argue that the federally illegal status of cannabis is outdated and unconstitutional. That case, which includes Verano and Wiseacre Farms among the plaintiffs, was originally filed in federal court in Massachusetts, but has since lost there and in the First Circuit Court of Appeals. SCOTUS is expected to deliberate this month about whether to hear the case. Law 360 has more. 

Texas announced first round of medical operator vetting 🔍

The Texas Department of Public Safety released a list of nine companies, including Verano ($VRNO), Trulieve ($TCNNF), and PharmaCann, who will be awarded conditional medical licenses under the Texas Compassionate Use Program. Those companies must still be further vetted by the state, which includes an evaluation of past disciplinary actions, financial suitability, and litigation history. The state's announcement did not say how long it expects the wait to be before it can issue final licenses, but it did say it plans to announce three additional conditional license awardees by April, 2026. 

Minnesota needs more licensed transporters 🚛

Amid the slow rollout of new cannabis licenses in Minnesota, retailers are struggling to maintain a steady supply because there aren’t enough operators licensed to actually transport the cannabis. As of late November, there were only three companies in the state authorized to move weed, according to MinnPost.

NJ governor-elect launches public policy survey 🍝

Governor-elect Mikie Sherrill launched a new survey to allow the public to lobby for policy issues as she prepares to take the reins of state government. This could provide an opportunity for cannabis activists to bring the issue of home grow front and center, as Heady NJ argued in a recent post.

Dutchie’s “coming soon” new products

This week, Dutchie announced Connect and Nexus, both powered by Dutchie Intelligence. You can see what the future may hold for the cannabis tech company on their teaser video here.

Curaleaf buys into VA and The Cannabist Co. bails 🤝

As Virginia prepares to finally allow a regulated cannabis market, Curaleaf ($CURLF) announced that it reached an agreement with the Cannabist Company ($CBSTF) to purchase the latter company's cultivation facility and five dispensaries in Virginia. The state is carved into five regions with each allowing a single medical license holder to operate. The Cannabist, formerly known as Columbia Care, previously sold its operation in a second Virginia region to Verano ($VRNO) last year. The transaction, which also includes the rights to build a sixth retail shop, is tentatively expected to close by the end of 2026. The companies did not disclose financial terms.

American Enterprise Institute: cannabis needs package warnings 🚬

Legal cannabis should have to carry the same warnings that cigarettes and other tobacco products are required to include, according to an op-ed from the American Enterprise Institute that has been making the media rounds over the last week or so. The lack of warnings presents a potential public health risk, says the institute, which has also argued that the FDA should make it easier for smokeless tobacco products to enter the market. 

Leafwell is hiring a head of partnerships.

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