Good morning.
Happy Wednesday, everybody.
Let’s get to it.
-JR, CC
Today’s newsletter is 1,020 words or about an 8-minute read.
THIS NEWSLETTER MADE POSSIBLE BY:
💡 What’s the big deal?
VIRGINIA
Virginia Governor sends cannabis sales back to lawmakers
Driving the news: Virginia Gov. Abigail Spanberger, a Democrat, is requesting amendments to a bill that would (finally) legalize cannabis sales in the state.
Virginia first legalized cannabis five years ago.
What she’s asking for:
Push the sales start date back six months, from January 1, 2027 to July 1, 2027.
Keep the 6% excise tax at launch, but raise it to 8% after July 1, 2029 (the 5.3% retail sales tax and up to 3.5% local add-on remain unchanged).
Increase from current 1 oz to 2 oz (lawmakers had passed 2.5 oz).
Replace the existing $25 civil fine for public marijuana use with a class 4 criminal misdemeanor.
Selling or distributing 50+ pounds illegally would become a class 2 felony punishable by life in prison.
Tighten enforcement provisions around vape shops and product/consumer safety in tandem with a related bill.
Why it matters: The industry has long awaited Virginia’s market opening. It’s a large, economically powerful state with nearly 9 million people.
It’s a big market for cannabis sales, and one that many firms will be more than happy to jump into.
What they’re saying: “Five years ago, the Commonwealth took the first steps to legalize marijuana—and for five years, the work sat unfinished,” Spanberger said.
“We are working to set up a marketplace that is controlled, regulated, and responsible—because legal markets only succeed when there are clear guardrails and enforcement to back it up.”
She also said she wants to levy enforcement on “shady” vape shops that sell cannabis to kids, possibly alluding to New York’s difficulties with illicit stores selling untested products without checking IDs.
But, but, but: Lawmakers who delivered the legislation pushed back against Spanberger’s proposed changes.
Sen. Lashrecse Aird, also a Democrat, said the proposal represents a “significant departure,” from the original bill passed by the General Assembly.
“By making the legal market harder to access, this proposal allows the illicit market to continue to thrive in every corner store in our Commonwealth. That undermines the core goals of legalization and increases the likelihood of untested products, inconsistent potency, and lacks consumer protections.”
The final word: I’d caution Spanberger against letting the perfect be the enemy of the good, here, having covered state cannabis rollouts for nearly a decade.
Delaying the market launch lets illicit sellers continue entrenching themselves. While not the intent, history shows this makes enforcement much more difficult on the other side.
But either way, despite these negotiations, cannabis sales are set to start in Virginia next year.
-JB
📣 Quotable
“Where are the bodies? Where is the harm?” Maine Rep. David Boyer said. “The patients aren’t asking for this. They are asking to kill the bill.”
Maine's House voted 102-43 to reject LD 1847, a bill that would have required medical cannabis growers to test products for mold, pesticides, and other contaminants. Maine is the only state in the country where medical cannabis is not required to be tested, and the issue now heads to the Senate. Read more.
⏩ Quick hits
Colorado's Marijuana Enforcement Division announced a crackdown on companies illegally substituting cheaper hemp-derived THC for marijuana in dispensary products, citing risks to public safety, market integrity, and tax revenue. The move follows a Denver Gazette/ProPublica investigation that found hemp-derived vapes on dispensary shelves contaminated with methylene chloride, a chemical banned by the EPA for most uses that can cause cancer and neurological damage. Read more.
Pennsylvania's House Health Committee approved a bill 23-3 that would require hospitals, long-term care facilities, and assisted living residences to allow terminally ill patients to use medical cannabis on-site, so long as it doesn't interfere with their treatment plan. The bill now heads to the full House, as Gov. Josh Shapiro separately pushes the legislature to legalize cannabis statewide.
Nebraska's Medical Cannabis Commission approved its fourth and final cultivator license, but the state's nascent program still has no timeline for manufacturer applications and no legal protections for doctors who recommend cannabis. Advocates warn that without those protections, physicians may simply refuse to participate. Read more.
🥐 Join Us in Atlantic City: Cultivated @ MJ Unpacked
We’ll be at MJ Unpacked this May at the Hard Rock Atlantic City — and we want Cultivated readers there with us.
When you register using our promo code, you’ll get:
20% off your ticket by using cultivated20 at check out
An invite to a Cultivated readers-only breakfast
Coffee, conversation, and connections with operators, founders, and investors
The breakfast is sponsored by Aquinnah Capital Partners and will be a relaxed kickoff to the event with the Cultivated community.
We hope to see you there.
⚖️ Lawsuits
Anti-cannabis group Smart Approaches to Marijuana is suing to block a Trump administration program that covers up to $500 worth of hemp-derived CBD products annually for Medicare patients. The federal government filed to dismiss the case this week, arguing that SAM and its co-plaintiffs have no legal standing because the program doesn't actually require them to do anything. The government's brief delivered a particularly sharp line on SAM's claimed injury: opposing cannabis policy is the organization's core mission, not a diversion from it.
Child advocacy groups filed suit against California's Department of Cannabis Control in February, alleging the state has failed to deliver on Prop 64's promises to fund youth programs and protect kids from cannabis harm. Youth Forward executive director Jim Keddy makes the case for the lawsuit in a Capitol Weekly op-ed. Read more.
📰 What we’re reading
Cannabis legalization spurs innovation, but not always in ways that benefit patients or public health | The Conversation
The surprising ways cannabis may affect the aging brain | The Washington Post