Good morning.
Today, Jeremy takes a look at the Florida Governor’s understanding — or misunderstanding — of economics.
Plus, tune in at 10 AM Eastern as Jay is joined by LeafLink’s new CEO Ashwin Raj. Join them on YouTube and LinkedIn.
Let’s get to it.
-JB, JR, ZH, NM
This newsletter is 1,109 words or about a 7-minute read.
Today’s newsletter made possible by:
💡What’s the big deal?
TAXES
Ron DeSantis doesn’t evidently doesn’t understand basic economics 📉
Driving the news: I want to take a moment to address something from my least favorite governor, Florida’s Ron DeSantis, since cannabis policy has broken containment in recent days.
DeSantis fought tooth-and-nail — potentially illegally spending taxpayer funds — to defeat cannabis legalization in his state last year. But despite his religious opposition to cannabis, he also appears to be sorely uneducated on the topic, per his recent social media posts.
What he’s saying: “Well, that has not been the experience in Colorado. The tax revenue from marijuana sales has fallen dramatically in recent years — largely because imposing taxes makes the black market marijuana more economical,” he said on X.
“Hence, why states like CO have seen an increase in the black market, not an elimination of it.”
Our take: That reveals a basic lack of economic literacy from the leader of the fourth largest economy in the US.
As it turns out, we have over a decade of data to figure out what the appropriate tax rates are for cannabis to incentivize legal market participation. Policymakers can model how taxes impact legal market demand elasticity, a fancy way of saying how much taxes consumers will tolerate before they switch to cheaper, illicit alternatives. It’s something that most college sophomores can figure out.
I told DeSantis as such on the social media site formerly known as Twitter, but I’ll let you know if I ever hear back. 😉
-JB
As another aside, I love a classic newspaper editorial, especially when two nearby states fall on either side of the hemp issue:
Editorial: On dangerous synthetic hemp, Washington comes to Illinois' rescue. Yes, you heard us right. | Chicago Tribune
Dabney: Instead of crushing the market, Congress should follow Minnesota's lead in regulating hemp | Minnesota Star Tribune
🍟 Catch up
The House voted on the funding bill to reopen the government, inclusive of the hemp ban. We’ll have more coverage on what’s next, but if you’ve missed our flurry of coverage, it’s linked here:
📣 Quotable
“Canada’s cannabis industry faces its own test of unity, not in war, but in purpose. Unless we find common ground and speak with one voice, our sector risks weakening itself from within, just as external forces grow stronger around us,” a group of Canadian cannabis industry leaders write in StratCann.
“That lesson is especially relevant today. The federal government’s 2025 budget was a stark reminder of what happens when our industry speaks with disjointed voices.”
Canada’s 2025 budget offered nothing the cannabis industry advocated for to make doing business easier, like excise tax reform, and easing regulatory burdens.
⏩ Quick hits
Kentucky Rep. Thomas Massie unsuccessfully attempts to save hemp ⛔
Thomas Massie, who represents the Fourth Congressional District in Kentucky submitted two amendments that would have stripped the redefinition of legal into the spending bill that is expected to reopen the federal government. Massie was unsuccessful and the House voted on the funding bill, inclusive of the hemp ban, last night.
Japan considers CBN ban ❎
The nation's Ministry of Health, Labour and Welfare opened a public comment period on CBN, which is the country's first step toward a regulated ban of the cannabinoid. Interested parties will have until Nov. 27 to submit comments. Hemp Today has more.
Cannabis retailers in Los Angeles stage tax revolt 💰
Dispensaries in Los Angeles are reportedly refusing to pay city taxes, claiming that the city has failed to properly crack down on illicit operators. Aside from state taxes, Los Angeles charges as much as 10% taxes on cannabis purchases. MJBizDaily has more.
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You’re making smarter decisions daily.
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🤝 Deals, launches, partnerships
Four more Canna Cabanas 🍀
High Tide announced on Nov. 12 that it would be opening four new Canna Cabana locations across Alberta and Ontario. The expansion will bring the company's total store count up to 215 across Canada. Note: High Tide is a Cultivated partner $HITI ( ▼ 1.69% )
💰 Earnings report
Glass House Brands reports Q3 earnings after federal raid
Glass House Brands reported its third quarter results, which encompasses the federal raid on the company’s California facilities in July. The company lost $12.1 million in Q3, up from $3.2 million the same quarter the year prior, on $38.4 million of revenue. That’s a sharp downturn from nearly $65 million the same quarter last year. Despite the challenging quarter, the company’s stock closed up 3.6%. $GLASF ( ▼ 7.06% )
🧳 People moves
Rubicon Organics $ROMJ.TSX ( 0.0% ) announced the appointment of Glen Ibbott as CFO. Ibbott previously served as CFO of Aurora Cannabis from 2017-2024.
🧪 Science & research
Cannabis in medical schools 🩺
A new paper in JAMA Network Open argues that U.S. medical students aren’t being adequately trained to counsel patients on medical cannabis, despite legalization in most states and rapidly rising use. The authors convened experts from 26 institutions to define six core competencies — spanning the endocannabinoid system, clinical evidence, risks, and legal context — that they say should be incorporated into all medical curricula as cannabis becomes a routine part of patient care. Read more.
📰 What we’re reading