New York keeps labor peace repeal but drops cannabis wage board

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What happened: Gov. Kathy Hochul signed a bill Wednesday that repeals the requirement for recreational license applicants to sign a labor peace agreement (LPA) with a union.

She signed it after striking a deal with lawmakers to strip out the bill’s other half next session: a three-member Cannabis Industry Wage Board that would have recommended minimum wages for cannabis workers.

The bill was a swap of sorts: drop LPAs, add a wage board. The amendment would let the Cannabis Control Board prioritize applicants who voluntarily sign an LPA.

What they’re saying: “For small cannabis owners, which we all are, an LPA hanging over our heads in this nascent cannabis industry wasn’t good for building our businesses,” said Gotham founder Joanne Wilson.

A coalition of New York cannabis processor, manufacturer, and farmer groups argued wage board costs would have compounded at every step of the supply chain and pushed consumers to the illicit market.

The groups cited an FTI Consulting survey finding cannabis workers already earn 19% more than people in comparable jobs statewide.

Why it matters: Gotham sued the state in federal court last year, arguing the LPA mandate is preempted by federal labor law. A judge rejected the state’s bid to dismiss the case in December.

Why it matters: Gotham sued the state in federal court last year, arguing the LPA mandate is preempted by federal labor law. A judge rejected the state’s bid to dismiss the case in December.

What’s next: The legislature has to pass the agreed amendment when session opens in January.

-JB

Editor’s note: Cultivated partners with Gotham for the Highrise.

"Eight years to do something as basic as saying you must be 21 to buy THC — with two years of Republicans holding a supermajority in the Senate — and they couldn’t get it done,” Wisconsin State Sen. LaTonya Johnson writes in The Cap Times. 

“If protecting children from buying unregulated drugs is not enough to make Republicans act, what will?”

Johnson introduced legislation to legalize cannabis in the state earlier this year, and regulate all forms of THC, whether derived from hemp or marijuana, through the same channel.

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Rep. Steve Cohen (D-TN) filed a bill Thursday that would remove cannabis from the Controlled Substances Act and require HHS to hold public meetings on regulating its manufacturing, labeling, and sale within a year. The bill, which also moves scheduling authority from the DEA to HHS, is a long shot.

Sens. James Lankford (R-OK) and Ted Budd (R-NC) urged the Postal Service to keep its ban on mailing cannabis after Georgia regulators approved a rule naming USPS as a delivery route for medical patients. USPS won’t say whether it will participate, though the federal rescheduling order appears to treat state medical certifications as prescriptions.

Even Republican nominee Zach Lahn says Iowa’s medical program, which bans flower and caps most patients at 4.5 grams of THC every 90 days, is “far too restricted,” though he opposes recreational legalization. Democrat Rob Sand has campaigned on taxing and regulating cannabis like alcohol to help close budget gaps.

State regulators pulled contaminated vapes from Colorado’s Best Dabs and moldy, pesticide-tainted flower from The Health Center, which together were sold at 69 dispensaries. Both notices cite at least one adverse health report, on the heels of a Craft vape recall that reached more than 700 stores.

Verano reported Q3 revenue of $212.4 million, up 5% from a year ago, and nearly doubled operating cash flow while narrowing its net loss to $4.1 million. Margins are thinning, though: adjusted EBITDA margin fell to 24% from 26%. $VRNO ( ▲ 1.37% )

Ascend Wellness Holdings launched fast-acting Effin’ gummies made with Azuca’s infusion tech in Illinois, Massachusetts, and New Jersey, and is switching the whole Effin’ gummy line over to it. $AAWH ( ▼ 0.18% )

Wyld-owned edibles brand Grön launched its Pearls gummies in Massachusetts, New Mexico, and Washington, its second multistate rollout since September. Grön President Draper Bender walked us through the Wyld integration on Cultivated Live last week.

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