Good morning and happy Friday.
Finish your week off strong — in this one, Zack breaks down what happened at yesterday’s Congressional hearing on illicit cannabis grows.
Plus, join us on YouTube and LinkedIn at 10 AM Eastern for This Week in Cannabis News powered by Dutchie where we’ll check in with Jason Tarasek from Vicente LLP to talk about this week’s Minnesota’s adult-use cannabis launch.
-JB, JR, ZH, NM
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💡What’s the big deal?
ILLICIT
Lawmakers say the Chinese Communist Party is running an illicit cannabis network in the US
Driving the news: A Congressional committee on Thursday held a hearing on the rise of Chinese-controlled illicit cannabis grows that critics have said are a major component of money laundering between Chinese Communist Party and Mexican drug cartels.
While concerns at the hearing included xenophobic histrionics about foreign powers using drugs to infiltrate the country, legitimate concerns have been raised about the use of human trafficking and the prolific use of harmful pesticides that regulated markets would otherwise ban.
What they’re saying: "Hundreds of pounds of illegal, contaminated marijuana has been produced that ends up in the hands of people all over the United States, from Oklahoma to New York,” Rep. Josh Brecheen said during the Congressional Committee on Homeland Security hearing.
“This is just one example of how Chinese grow operations come to communities all across the country."
Medical use is popular: There was a general acceptance that cannabis has medical benefits even from conservative lawmakers
"There's also people that use it for PTSD and have success with it. There's medical uses of marijuana, but the American people have no idea that Chinese transnational criminal organizations are involved and that it's leading to other extremely terrible and dangerous crimes," said Rep. Marjorie Taylor Greene.
Go deeper: Illicit grow sites operated by Chinese nationals have reportedly become a major problem in Oklahoma, Maine, and other states with legal cannabis markets.
Oklahoma voters legalized medical cannabis in 2018, but regulations did not limit the number of licenses available. As long as they resided in the state for two years, anyone could get a license. In hundreds of cases, operators paid straw buyers to obtain licenses which were then used to illegally produce cannabis for out-of-state export.
Meanwhile, Maine's loose caregiver regulations, which allow individuals to grow and sell cannabis without having to track their products, has made it easier for scofflaws to start open illicit operations that allegedly sell their product out of state.
-ZH
📣 Quotable
“We know where it’s going to go. Let’s send a virtue signal,” New Hampshire Democratic Rep. Jared Sullivan said during a hearing this week. “Let them be the ones that are pissing off voters who care about this.”
State lawmakers are moving forward with yet another proposal to legalize cannabis in the Granite State. But, it appears to be a nonstarter — Republican Gov. Kelly Ayotte is an opponent of cannabis reform and has signaled she would veto any legalization bill. Previous attempts to legalize cannabis in the state passed the state House but failed to become law. Read more.
⏩ Quick hits
Cannabis business pioneer announces Congressional bid 🗳️
Wanda James, the first black woman to own a legal dispensary, announced she is running for Congress. Three years ago she scored her first electoral victory when won the race to fill an open spot on the University of Colorado Board of Regents.
Mass. Appeals Court reinstates CCC chair Shannon O’Brien 🪑
The state appellate court announced that former and now-current CCC Chair Shannon O'Brien can resume her post at the head of the state's cannabis regulatory agency. O'Brien was suspended about two years ago, and then formally fired a year later. She subsequently sued for wrongful termination in state court and on Sept. 2 that court ruled in favor of O'Brien.
Maryland issues recall for Vireo Health edibles 🍫
The state issued a recall on September 16 for edibles products by Vireo Health after they failed testing for microbials. Effected products were sold from July 5 to September 16, and involve numerous chocolate products.
🛄 People moves
LeafLink has a new CEO 🤝
LeafLink announced that Ashwin Raj would be taking over for Artie Minson as the company's new CEO. Raj formerly served as CEO of ezCater and EVP and Head of Ridesharing at Lyft.
🤝 Deals, launches, partnerships
Wana Brands launches hemp-derived edibles and beverages in GA 🥤
New edibles and drinks from Wana are now available in Georgia, making it the 24th state that the Colorado-based brand has expanded its hemp-derived products.
📰 What we’re reading