Cannabis Tax Attorney James B Mann highlights the ongoing frustration within the cannabis industry due to persistent delays in legalization and reform, particularly concerning the SAFER Banking Act and Section 280E.

James addresses the perceived ineffectiveness of current lobbying efforts and explores various legal challenges to Section 280E, noting instances where companies have successfully disputed its application and received tax refunds.

We underscore the critical need for more impactful strategies, including broader public outreach and the implementation of a simpler tax structure, to drive meaningful change in the cannabis sector.

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Blunt Business welcomes Joshua Horn, co-chair of Fox Rothschild's LLP's cannabis law practice. We addressed several key issues impacting the cannabis industry, including the detrimental impact of California's upcoming cannabis tax increase, the challenges posed by the persistent illicit market, and the lack of state enforcement against it.

We also addressed the stalled federal rescheduling of cannabis, attributing it to political factors and potential resistance within the DEA, while briefly touching on Pennsylvania's legalization efforts and frustrations with the lack of clear federal regulation.

We also focused on the lack of progress in rescheduling cannabis at the federal level, despite the Biden administration's recommendation. Political factors and potential internal resistance within the DEA were cited as reasons for the delay. We also noted that the federal government's current tax revenue from the existing 280E structure might act as a disincentive for reform.

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Anthony Coniglio, CEO at NewLake Partners returns to discussed a possible shifting to an optimistic outlook on cannabis policy, noting concerns about Rand Paul's efforts to strip hemp language from the agriculture appropriations bill and a proposed DOJ rule classifying cannabis users as "dangerous to society."

We also covered DEA Administrator Terrence Cole's confirmation, his strategic priorities not including cannabis rescheduling, and the potential impact of Schedule 3 reclassification on addressing transnational criminal organizations, with Anthony clarifying that the DEA's priorities align with the National Drug Threat Assessment.

The participants also discussed the rescheduling process and timeline, and the actions taken by states to ban or regulate intoxicating hemp-derived THC products.

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Joshua Bauchner, chair of the Cannabis, Hemp and Psychedelics Practice Group of Mandelbaum Barrett, P.C., discusses the intricacies of medical cannabis use and its legal implications. While some states provide protections for medical cannabis users, federal law does not, limiting the scope of the Americans with Disabilities Act (ADA).

The inconsistency between state and federal laws creates additional challenges for both employers and employees. The discussion further explored the potential impacts of DEA rescheduling or descheduling cannabis, including possible changes to ADA protections and tax implications for cannabis businesses. Ultimately, prioritizing the passage of the Safe Banking Act and amending Section 280E of the IRS code were identified as more effective solutions for addressing industry challenges.

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Blunt Business welcomes back Nishant Reddy to talk about the launch of Phases and Smack Studios as extensions of A Golden State, aiming for approachable pricing while maintaining quality across vaporizers, edibles, and infused pre-rolls.

Nishant highlighted the challenges in California's cannabis market due to taxation and regulation, but noted the success of their brands due to a focus on quality and the unique consumer experience offered at their flagship retail store.

The conversation covered brand strategies, market trends, and frustration with California's business environment, while also introducing the new brand Smack Studios with its unique genetics and artist collaborations.

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Blunt Business welcomes back with Sara Gullickson, founder and CEO of CB Advisors, regarding the current landscape of the cannabis industry. Key topics included the inconsistent regulations across different states, particularly in the Southeast, and the significant challenges faced during Minnesota's cannabis program rollout. Gullickson emphasized the detrimental effects of unregulated hemp-derived cannabinoid products on legitimate cannabis businesses and the critical need for better industry oversight and sufficient capital for businesses to thrive.

The conversation highlighted the complexities of federal intervention versus industry self-regulation, drawing parallels to existing regulatory frameworks. A major point of concern was Minnesota's flawed social equity lottery system, which has created an uneven playing field for applicants and led to market saturation due to unlimited licensing. The discussion also covered the substantial capital requirements for success in the evolving cannabis market, which has shifted from a grassroots movement to one dominated by larger corporations.

The meeting concluded with a look at the future of the cannabis industry, including the Treasury Department's proposal for financial data collection to combat money laundering. Gullickson underscored the importance of the industry establishing a clear path forward, advocating for either complete federal legalization or a merit-based, limited licensing system. There was also an optimistic outlook on the potential passage of some form of the Safer Banking Act under the current presidential administration.

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In this episode of Blunt Business, managing partners Ed Brown and Tucker Herndon of Burr & Forman discuss Georgia's sudden move to ban THC-infused drinks and restrict Delta-8 and Delta-9 products.

As attorneys specializing in the food and beverage industry, they explore the potential impact on retailers, manufacturers, and the broader Southeast cannabis market.

They also delve into the chilling effect on innovation, legal challenges, and strategies for businesses to navigate this evolving regulatory landscape.

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Thomas Winstanley, EVP, General Manager of Edibles.com discussed the severe implications of Texas Senate Bill 3, which proposes a ban on hemp-derived THC products. He highlighted the bill's flawed reasoning, arguing that it disregards consumer demand for safe THC access and would lead to the closure of thousands of businesses and job losses for tens of thousands of workers. Winstanley criticized the political motivations behind the bill, suggesting they are not rooted in genuine health concerns and would instead foster an unregulated illicit market. He emphasized that an outright ban fails to address underlying issues in the hemp industry, and Texas is missing an opportunity to establish a sensible regulatory framework.

Winstanley further pointed out the double standards in Texas regulations, contrasting the proposed hemp ban with the state's approach to alcohol, tobacco, and firearms, none of which face similar bans despite documented harms. He noted the strong opposition to SB3, particularly from veterans who rely on hemp products for pain management and fear a return to opioid dependence. Winstanley expressed disappointment that legislative attempts to regulate the industry with THC caps and licensing were ultimately overridden by the ban proposal.

Regarding edibles.com, Winstanley explained that the company aims to provide safe access to THC products through a curated marketplace, addressing inconsistencies in quality and testing within the hemp industry. The strategic launch in Texas is a proof of concept for future expansion into states like Florida and Georgia, with plans for nationwide shipping and a flagship retail store in Atlanta. The company's goal is to build consumer trust and legitimacy by connecting them with reputable brands and offering a responsible alternative to unregulated sales. He outlined a vision for effective regulation, including licensing, excise taxes for enforcement, and clear frameworks for product types and dosing, citing Georgia as a successful example of regulated hemp.

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Terrence White, CEO and Founder of MONKO and Former Chairman of the I-71 Committee, explores the complex cannabis landscape in Washington D.C. Despite voter approval for legalization through Initiative 71, the Harris Rider restricts a regulated adult-use market, leading to a "gifting" model and lost tax revenue.

The discussion delves into potential policy solutions beyond lifting the Rider, including replicating Maryland's successful market, revenue generation models, and strategies for federal advocacy.

White addresses integrating cannabis into D.C.'s tourism sector, data on economic potential, recent changes in the "gray market," and the impact of stricter enforcement and an influx of medical dispensary licenses.

He also tackles misconceptions surrounding D.C.'s cannabis situation, lessons from Maryland's legalization, and the potential for social and criminal justice reform through a fully regulated adult-use market.

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Khari Griffin, a Cannabis Attorney at Clark Hill Law, joins Blunt Business to delve into the complexities of inconsistent state regulations on THC products. Key issues highlighted included concerns over high potency, youth access, and the lack of federal oversight, particularly regarding the 2018 Farm Bill and FDA inaction.

The discussion also explored the influence of lobbying and public opinion, using Texas and Georgia as case studies to illustrate varying legislative approaches and the challenges faced by the hemp industry.

We also emphasized on the need for future action from the FDA to establish clear standards for THC products, especially addressing synthetic THC.

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