The cannabis industry moves fast. You might even say, “if you don’t stop and look around once in a while, you could miss it”. Unfortunately, as an operator, looking to scale in the fast-paced industry – not knowing the latest happenings can put your business behind.
So, take the time today to catch up on a mid-year breakdown of 2023 cannabis news. Keep reading for a complete guide on the latest legalization news and the most current cannabis news to keep you in the know.
New Markets : The Latest Legalization News
The latest legalization news shows that cannabis is continuing to sweep the midwest, with Minnesota being the most recent state to legalize adult-use in May, which will go into effect by 2025. Joining Delaware, as the 2nd state to launch a legal market in 2023, who began recreational sales this Spring.
Now neighboring states, like Wisconsin for Minnesota, are under pressure by citizens and legislators to join the green wave of legalization. Of course, only time will tell on which state will be the next to legalize, however, states like Hawaii and New Hampshire, may be the next to turn, while the medical movement for southern states like Kentucky are showing promise for future growth.
Lastly, Virginia’s recreational market will launch and is projected to produce $198 million in first-year sales.
When Will Federal Legalization Be Voted On?
It’s easy to think, “maybe never” to the question of – when will federal legalization be voted on? Especially considering the movement’s slow movement thus far. But recent Safe Banking news may be a good sign for the future of federal legalization.
This spring, The Secure and Fair Enforcement Banking Act (“SAFE Banking Act”) was revised and yet again reintroduced in the House and Senate. After passing in the house, it’s now gaining momentum in the senate just after the July 4th recess.
Although senate leaders say passing the bill is a “priority”, Majority Leader Chuck Schumer (D-NY) also stated just this week, it will “not be easy”. This time, adding to urgency, is yet another round of letters from groups in support- like the American Bankers Association (ABA) as well as insurance and union organizations, too.
Increase in IRS Form 280E Relief
On the state side of things, some cannabis operators can sigh a breath of relief in the form of 280E. As of June 2023 cannabis relief for the notorious and costly IRS code 280E that restricts operations from deducting their expenses, has been passed in 20 states. The latest states to do so being Connecticut, Illinois, New Jersey and New York. Joining the states below, who already allow business expense deductions –
- Arkansas
- California
- Colorado
- Delaware
- Hawaii
- Louisiana
- Maine – medical only
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Missouri
- Montana
- New Mexico
- Oregon
- Washington DC – medical only
Cannabis Industry vs Everybody
Of course, the cannabis industry wouldn’t live up to its name as a tumultuous market, without a rise in major lawsuits. Put simply, when the going gets tough, the tough get going. As for 2023 cannabis lawsuits here are the biggest to be aware of to avoid the same mistakes, or to protect your business from similar legal trouble.
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- Cookies – We can’t talk about 2023 cannabis lawsuits without mentioning the iconic brand Cookies, and its array of legal trouble. The latest filing by Seed Junky is the third instance of a former partner suing the brand just this year. The lawsuit claims, breach of contract, breach of fiduciary duty, and fraud and violations of California business law.
- Greenleaf Compassion Center – On the east coast, and just this week, Greenleaf Compassion Center filed a complaint in federal court, stating that the state’s marijuana legalization law violates the U.S. Constitution and national labor standards. This comes after a settlement agreement between the company and its workers for alleged federal labor law violations.
- Herbl – Following the collapse of one of California’s biggest distributors (news to know in itself!), Herbl will be pursuing legal action to recover millions of dollars it’s said to be owed. The company is also named in lawsuits by a number of producers, like Sunset Connect, a San Francisco brand who is seeking compensation for $130,000 worth of pre-rolls that Herbl sold to retailers, collected payments for, and then allegedly told the brand ‘it would not be paying’ them.
2023 Cannabis: The Final Mid-Year Word
In writing this, we still have six months left in the year…meaning, the recent cannabis news doesn’t stop here. To stay up to date, and to ensure your operation stays in line with the competition, partner with MJstack. MJstack is connected with industry leaders from coast to coast that offers you a network and the expertise, to save time and money for optimal profits and growth.
Schedule a free consultation with our team now!
