‘The governor of the State of Texas wants to legalize recreational marijuana’ 🤠

HEMP BAN VETOED
Texas Gov. Greg Abbott pulls a late-night plot twist and vetoes hemp ban 🤠

Driving the news: Gov. Greg Abbott vetoed SB 3, a bill that would’ve banned intoxicating hemp in Texas on Sunday night — with minutes left until the midnight deadline when it would have become law with or without the governor’s signature.

The bill became a political football as Lt. Gov. Dan Patrick took on the cause of banning hemp-derived intoxicants. Both Patrick and Abbott are Republicans, but fell on opposite sides of the issue. 

There are an estimated 8,500 hemp shops across Texas, according to a report from hemp company Hometown Hero and Whitney Economics. The industry supports 53,300 jobs and generates an estimated $268 million in annual tax revenue. So the economic stakes were pretty high if the ban were to go into effect.

Abbott almost certainly felt the pressure from those businesses, as well as veterans who want access to legal cannabis, and some free-market minded members of his own party.

What they’re saying: "Passing a law is not the same thing as actually solving a problem. Texas needs a bill that is enforceable and will make our communities safer today, rather than years from now. Next month, the Legislature will have the opportunity to address this serious issue,” Abbott said in a proclamation explaining his rationale for the veto.

And also: “The governor of the State of Texas wants to legalize recreational marijuana in Texas. That's the headline, folks. That's what his proclamation does.” Lt. Gov. Dan Patrick held a press conference Monday afternoon to respond to the veto.

Hemp businesses cheered the news: “For the first time, a sitting Republican governor has rejected prohibitionist fearmongering and instead affirmed the rights of Americans to access legal THC products,”  Jim Higdon, the cofounder of Cornbread Hemp, said. 

“This moment will be remembered as the beginning of the end of marijuana prohibition in the United States.”

Higdon added that the veto should “serve as a roadmap,” for Congress as it works to pass the Farm Bill. “This false dichotomy between hemp and marijuana can no longer hold.”

Jake Bullock, the cofounder of Cann, a THC-infused beverage brand, called the veto a “huge win” for common sense. 

“This shows real leadership, pushing back on panic-driven narratives and acknowledging what’s actually working in the real world,” he said. 

What comes next: In his veto proclamation, Abbott called for a special legislative session starting July 21 to craft a new hemp law that would include a regulatory framework that can be enforced in a short amount of time.

Abbott suggested that those regulations include age-gating, packaging, labeling and testing requirements, and a limit on THC content rather than an outright ban. He also suggested that enforcement fall to the Texas Alcoholic Beverage Commission.

Why it matters: Regulate, don’t ban, has been the hemp industry’s motto for the entire debate over SB 3. 

If Abbott’s proposed regulations go through during the special sessions, it’s almost as if THC would be legalized in Texas itself, albeit a very different form than the limited license states of the traditional cannabis industry.

It’s possible that the fight over Texas hemp regulations is a harbinger for the federal government, especially as some Republicans in Congress put THC in their crosshairs. 

Medical goes forward: While it considered a hemp ban, the legislature also passed a medical cannabis expansion bill, HB 46, which Abbott signed on Friday. 

The bill expands the number of qualifying conditions for medical cannabis patients in the states, increases THC limits and increases the maximum number of dispensing licenses from three to 15. New qualifying conditions include chronic pain, traumatic brain injuries, and Crohn's disease.

"He signed that bill, that's worthless now,” asked Patrick. “Who's going to go there now, when they can go to any smoke shop and get what they want?”

Once more from Patrick’s press conference: "If I'm wrong, governor, and you're watching then please put out a statement that you do not want to legalize marijuana for adults in the state of Texas, because that is what, either by default or on purpose, you're doing."

-ZH

Majority of Utahns want legal adult-use 📈

A new survey found that 53% of Utahns are in favor of legal cannabis. The survey, which was conducted by Deseret News and the Hinckley Institute of Politics, also found that 77% of respondents support the state's current medical cannabis law. Deseret News has more. 

NYC dispensary allegedly faked FDNY chaplain's support ✒️

The New York Fire Department claimed that the owners of Terp Bros, a dispensary in Queens, forged the signature of the FDNY chaplain Msgr. Jamie Gigantiello on a letter of support for the company's plan to expand its location. The chaplain, who previously got in trouble for allowing Sabrina Carpenter to film in a risque video in a Williamsburg church, says he never signed the document, but the store owner, Jeremy Rivera, told the NY Post that the signature was legitimate, but three years old. 

Alabama might have found a way out of its licensing stalemate ⌚

The Alabama Medical Cannabis Commission (AMCC) will to hold hearings for some of the contested dispensary licenses that the commission has been trying to issue for over two years. The AMCC is still in the middle of litigation related to its botched attempts at rolling out the state's long-awaited medical cannabis market, but the administrative hearings are expected to move things forward.

LIT ALERTS’ INSIGHTS
Top brands and retailers in Greater Buffalo

We often talk about cannabis sales in and around New York City. But New York has many great cities and regions.

That’s why this week, our partners at Lit Alerts are showcasing the Greater Buffalo area — including Erie and Niagara Counties.

Buffalo is home to the Buffalo Bills, buffalo wings, beef on weck, and some of the best New York-grown cannabis businesses in the state. New York juggernauts like Ayrloom, Jaunty, and MFNY are present in the top brands while out of state upstart Rove continues to show its face in the top spots.

It's also nice to see some of the first stores opened in the Buffalo area maintaining regional leadership positions.

This region's demand bends slightly more towards vapes and pre-rolls when compared to the New York state averages. Vapes and pre-roll products are also driving slightly higher prices per package in these counties. 

Have a look at Lit Alerts’ exclusive insights. 👇

To learn more about Lit Alerts and get a special offer only available to Cultivated readers, visit litalerts.com.

High Tide to highlight local highs 📍

The Canadian cannabis giant announced the launch of its "Buy Local" initiative, in which the company plans to showcase locally-produced cannabis products across its 200 Canna Cabana storefronts throughout the summer. 

Jones Soda pulls out of the weed drinks biz 🥤

The Seattle-based soft drink company announced on Monday that it had divested its cannabis-infused Mary Jones business and assets to MJ Reg Disrupters LLC for $3 million. The new owners will also get the exclusive rights to continue using the Mary Jones brand for $150,000 annually. 

And more:

Jushi and Real Housewives star Stacey Rusch launched Shayo, a cannabis brand available in Virginia.

The New York State Office of Cannabis Management will host its monthly meeting on Friday, June 27 in New York City. Those outside of the city can watch the meeting here.

C21 Investments reported its full year and fourth-quarter results. For the full year, the Vancouver-based cannabis company reported a $4 million net loss on $30.1 million of revenue. For the Q4, the company reported a $1.6 million net loss on $8.1 million of revenue. Full results here.

‘It’s everywhere’: Intoxicating hemp products, easily accessible in Mass., are a growing health and business problem | The Boston Globe

Ayr dismisses talk of Connecticut exit amid its other marijuana consolidations | MJBizDaily