The U.S. Drug Enforcement Administration (DEA), under the Biden administration, will move to reclassify cannabis under Schedule III, meaning its medical benefits will be recognized by the federal government, the Associated Press first reported today. By all accounts, it’s a historic move by the DEA and the federal government as the plant was wrongly classified as a substance with no accepted medical value, for decades.

The DEA’s move to reclassify cannabis must first be reviewed by the White House Office of Management and Budget (OMB), and for the first time in 50 years would recognize the medical uses of cannabis. The move to Schedule III was recently recommended by the U.S. Department of Health and Human Services (HHS). By definition, Schedule I substances are criminally prohibited under federal law because they possess a “high potential” for abuse and have no currently accepted medical use. 

Leadership from The National Organization for the Reform of Marijuana Laws (NORML) broke down the pros and cons of Schedule III and why this move is so historic.

“While the DEA’s decision fails to go far enough, it represents the first time the agency has ever abandoned its ‘Flat Earth’ position toward cannabis and acknowledged that the substance possesses legitimate therapeutic utility and that it doesn’t belong in the same federal classification as heroin,” NORML Deputy Director Paul Armentano tells High Times. 

It won’t erase the discord between federal and state law fully, however. Armentano continues, “Unfortunately, this move—if and when finalized—continues to perpetuate the growing divide between federal marijuana laws and the marijuana laws of most states. It also fails to align with public opinion, as most Americans would like to see cannabis treated more like alcohol than like anabolic steroids.”

Fifty Years Under Schedule I

For the Scientific American, David Downs reported in 2016 that disgraced former Attorney General John Mitchell of the Nixon administration placed cannabis in this category as part of the classification or “scheduling” of all drugs under the 1970 Controlled Substances Act.

U.S. leaders also provided comments on the DEA announcement.

“If today’s reporting proves true, we will be one step closer to ending the failed war on drugs,” Rep. Earl Blumenauer said in an emailed statement obtained by High Times. “Marijuana was scheduled more than 50 years ago based on stigma, not science. The American people have made clear in state after state that cannabis legalization is inevitable. The Biden-Harris Administration is listening.” 

According to the National Cannabis Industry Association (NCIA), moving cannabis to Schedule III is expected to lift the unfair burden of 280E on thousands of state-legal cannabis businesses. The Legal Intelligencer reported that Schedule III would remove the prohibitions against tax deductions under tax code 280E.

“Moving marijuana out of its absurd classification as a Schedule I drug is long overdue and we applaud the administration for finally acknowledging the therapeutic value that has been widely accepted by the medical community and millions of medical cannabis patients for decades,” said CEO, Aaron Smith. “While this is undoubtedly a very positive first step, rescheduling will not end federal marijuana prohibition and doesn’t harmonize federal law with the laws allowing some form of legal cannabis in the vast majority of the states. In order for this move to be meaningful on the ground, we need clear enforcement guidelines issued to the DEA and FDA that would ensure the tens of thousands of state-licensed businesses responsibly serving cannabis to adults are not subject to sanctions or criminal prosecution under federal laws.”

“Further, it’s imperative that Congress build upon this development by passing comprehensive legislation to remove cannabis from the Controlled Substances Act and forge a new regulatory framework for whole plant cannabis products.” added Smith.

“The goal of any federal cannabis policy reform ought to be to address the existing, untenable divide between federal marijuana policy and the cannabis laws of the majority of US states,” he said. “Rescheduling the cannabis plant to Schedule III fails to adequately address this conflict, as existing state legalization laws—both adult use and medical—will continue to be in conflict with federal regulations, thereby perpetuating the existing divide between state and federal marijuana policies.”

Cannabis Industry Reacts

The US Cannabis Council (USCC) aims to be the voice of America’s regulated cannabis industry. “The US Cannabis Council strongly supports the move by the DEA to reclassify cannabis at a lower level under the Controlled Substances Act,” USCC Executive Director Edward Conklin said in a statement. “President Biden and his Administration should be commended for recognizing that cannabis was wrongly classified as a Schedule I controlled substance and pursuing an administrative review to reclassify it.

“The proposed DEA rule implements the recommendations of the Department of Health and Human Services, which were based on an extensive scientific review by the Food and Drug Administration. Once finalized, the reclassification of cannabis to Schedule III will mark the most significant federal cannabis reform in modern history and place the nation on a clear path toward our ultimate goal of federal legalization…”

High Times also received a high volume of comments from cannabis business leadership.

“Today’s decision by the DEA to reschedule cannabis to Schedule III is one of the most monumental developments that cannabis has seen in years and is a crucial step in undoing the harms caused by the failed and discriminatory War on Drugs,” said Matt Darin, CEO of Curaleaf. “We are thankful to President Biden and his Administration for helping to push this process forward. This ruling reflects evolving attitudes towards the plant, recognizing its well-documented therapeutic value and medicinal applications. It’s very clear that the country is ready for this step, given that 92% of Americans are now in support of legalization in some form. As the cannabis industry undergoes regulatory transformations, Curaleaf remains committed to collaborating with regulatory authorities, industry members, and the broader community to ensure the responsible and sustainable growth of the cannabis sector. The future for the cannabis industry is real and we look forward to seeing what 2024 has in store.”

“AYR Wellness applauds the historic proposal by the Drug Enforcement Administration’s to reclassify cannabis from Schedule I to Schedule III, in alignment with the science-backed recommendation made earlier this year by the Department of Health and Human Services,” David Goubert, President & CEO of AYR Wellness.

It’s now up to the OMB at the White House to give final approval of the DEA’s move to reschedule cannabis.

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Regulated sales of marijuana in Arizona topped $1.4 billion last year, according to state data, marking the third year in a row that licensed weed sales have exceeded $1 billion in the Grand Canyon State. Sales of recreational marijuana totaled more than $1 billion in 2023, while sales of medical cannabis brought in nearly $350 million, the Arizona Mirror reported on Tuesday.

Arizona’s continued strong weed sales were welcome news for the state’s licensed cannabis businesses. Luke Flood, senior vice president and West regional leader for multistate operator Curaleaf, said, “Arizona has been a strong success story for us, and has become one of the top markets in the country for Curaleaf.” 

“Since the launch of adult use, we have seen a lot of consolidation in the market on the retail side, along with a multitude of new third-party brands and products coming into the market, resulting in a wider selection for consumers at an affordable price,” Flood wrote in an emailed statement. “Uniquely, Arizona offers one of the lowest prices per gram at the retail level in the country.”

Adult-Use Sales Dominate the Arizona Market

Adult-use cannabis sales came to $1.1 billion in 2023, according to data from the Arizona Department of Revenue (ADOR), or about 72% of the year’s total sales. The year before, recreational marijuana sales contributed 70% of the yearly total. In 2021, the year adult-use cannabis sales began in Arizona, recreational weed made up only 45% of the state’s total cannabis market.

“Reaching $1.4 billion in sales is a huge milestone for the state and I think it speaks to the wider efforts of de-stigmatization surrounding the plant,” Josh Hirschey, president of Arizona-based concentrate manufacturer Timeless, said in a statement.

“The consumer demand for high-quality cannabis is there and Arizona brands are strategic in navigating natural limitations to normalize the plant,” he added.

Monthly sales of recreational marijuana have totaled between about $80 million and $93.5 million since July 2022, peaking in March 2023 at $100 million. In January, adult-use sales dropped to $76.8 million, the first time in 18 months the figure was below $80 million.

Medical cannabis sales totaled $348 million last year as the market for medicinal weed in Arizona continues to decline. Medical sales hit a monthly sales record of $73.4 million in April 2021 and have steadily decreased nearly every month since then.

The decline in medicinal cannabis sales has coincided with a drop in the number of registered patients in Arizona’s medical marijuana program. Last month, the total number of medical marijuana cardholders was 111,168, down from the peak of 299,054.

Weed Taxes Fund Social Services

Arizona levies a 16% excise tax on adult-use cannabis sales in addition to the usual sales tax. Medical patients pay the sales tax of about 6%, depending on the area. Additionally, local jurisdictions add a tax of about 2% to all weed sales. 

Last year, cannabis excise taxes totaled $172.8 million. Since recreational marijuana sales began in January 2021, the marijuana excise tax has generated $451 million in revenue for the state.

Approximately one-third of Arizona’s marijuana tax revenue is earmarked for community college and provisional community college districts and 31% is dedicated to fire departments, fire districts, law enforcement and other first responders. One-fourth of state cannabis taxes are reserved for the Arizona Highway User Revenue Fund, while 10% is dedicated to the justice reinvestment fund supporting public health services, counseling, job training and other social services for communities that have been disproportionately affected by the War on Drugs.

Although Arizona’s cannabis market has begun to stabilize, many of the state’s weed retailers are still optimistic about this year. Eivan Shahara, CEO of Mint Cannabis, said the business is “anticipating an even busier 2024, as we prepare to employ more people to serve more customers at our additional dispensary locations.”

“The marijuana industry is blossoming into a significant job creator,” Shahara wrote in an email to High Times. “It’s estimated that the cannabis industry employs about 500,000 full-time equivalent positions in the U.S., with about 280 new jobs being added daily. This showcases a promising trend, as more than 100,000 new jobs were established in the previous year, making the cannabis industry one of America’s fastest-growing job sectors.”

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Curaleaf, one of the world’s largest cannabis companies, is exiting the adult-use cannabis retail market in Maine with the sale of its licensed dispensary in South Portland. The company’s sole recreational marijuana shop is being sold to Foliage Cannabis Co., which has already begun operations at the retail location, according to a report in local media.

Online news source Mainebiz reports that Curaleaf and Foliage Cannabis have agreed to the transfer of ownership of the South Portland dispensary, although the terms of the deal have not been released. The retail site will be the second dispensary in Maine for Foliage Cannabis, which operates its original shop in South Portland less than a mile from the new location. Curaleaf continues to operate medical marijuana dispensaries in Bangor, Auburn, Wells and Elsworth, Maine, according to a listing for the state on the company’s website.

A company spokesperson for Curaleaf confirmed the move, writing in an emailed statement that “We exited adult use, but remain in the medical market with four stores and have no plans to exit medical.”

Curaleaf mentioned the transaction on March 6 when it reported results for the fourth quarter of last year. The announcement had few details, saying only that the company had “entered into an agreement to sell our Maine, adult-use store.” In a press release, the company reported it had generated $345 million in revenue in the fourth quarter of 2023, representing an increase of 4% quarter-over-quarter.

Curaleaf’s fourth-quarter financial also reporting shows that the company’s revenue for the year totaled $1.35 billion, up 6% from 2022. Profitability was elusive, however, with the firm showing a 2023 net loss of $281.1 million, the equivalent of 39 cents per share. Curaleaf owns and operates 145 retail cannabis locations in 17 states. Worldwide, the company employs about 5,600 people.

Alexis Soucy, a spokesperson for the Maine Office of Cannabis policy, said that Curaleaf will complete the sale of the retail location once the business has been approved for an active license. The conditional license the shop is operating under is scheduled to expire in October. Until the active license is approved, the two companies have arranged for Foliage Cannabis to use its name and branding at the dispensary to be transferred. 

Curaleaf Entered the Maine Rec Market Three Years Ago

Three years ago, Scott Reed, Curaleaf’s general manager in Maine at the time, said that the company had big plans for the state as it entered the recreational market in April 2021.

“We have been proudly serving the Maine medical market with top-quality, locally grown flower, and exceptional customer service for nearly a decade, and we look forward to expanding those offerings to our adult-use customers,” Reed said at the time, according to the report from Mainebiz.

Reed left Curaleaf in July 2022 when the company went through a round of downsizing. He is now the co-owner of Foliage Cannabis Co. with his partner Scott Lever. Together, they’ve been able to independently raise the money needed to open the two retail locations, giving the partners far more flexibility than many other cannabis companies.

“We’re self-funded, so we’re different from a large company with lots of investors,” Reed said. “We can be nimble.”

Earlier this month, the Office of Cannabis Policy released data showing that the state’s retailers rang up $18.01 million in recreational marijuana sales last month, a figure that was up 28.3% from the $14.05 million in sales in February 2022.

Despite the success of Maine’s adult-use cannabis industry as a whole, the picture isn’t as rosy for some companies in the market. A total of 20 licensed businesses including 11 cultivation sites, four manufacturing facilities and five retail dispensaries exited Maine’s recreational marijuana market in 2023.

Overall, however, the industry is still growing. Despite the shuttered companies, the number of cultivation sites in Maine remained stable from 2022 to 2023, while the number of retailers increased by 27 and the number of manufacturers rose by 13.

Curaleaf’s exit from Maine is not the first time the company has left a state’s recreational cannabis market. In January 2023, Curaleaf announced that it was leaving the mature markets of California, Oregon and Colorado. That announcement was followed by the company’s exit from adult-use cannabis markets in Michigan and Vermont.

Curaleaf executive chairman Boris Jordan said during a third-quarter investor conference call in November that the company is exiting “low-margin, low-growth” markets it now serves in a bid to improve profitability. 

“Throughout 2023, the company’s been focused on improving efficiency metrics and dialing in operations to maximize its existing base,” Jordan said, according to a report from Cannabis Business Times. “We have taken significant steps to eliminate redundancies, strategically reduce headcounts [and] exit unprofitable markets. Most of these actions occurred in the first half of the year. And in the third quarter we took the final steps in our asset optimization plan.”

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Two companies in the cannabis space, Green Flower and Curaleaf, announced in an August 8 press release that they are partnering with the University of Nevada, Reno to offer a full scholarship to the university’s online cannabis education program.

2News in Reno reports that the scholarship will be available to local students for one of the four available online cannabis education certificate programs that are provided at the university.

“We are thrilled that Curaleaf and University of Nevada, Reno are working together with us to offer online cannabis education programs to support the training and development of potential future employees in such an impactful way,” said Max Simon, Green Flower CEO. “The knowledge and skills students gain through these programs positively impacts their careers in the months and years ahead.”

Green Flower produces online training and content designed to help people get a foot in the door and succeed in the cannabis industry. Green Flower also partners with colleges and universities to help job seekers and professionals succeed in the increasingly competitive cannabis marketplace.

It’s a full scholarship, and the recipients will also have an opportunity to connect with someone at the company who funded their scholarship to talk about their long-term career goals and learn more about opportunities in their field.

Hurry, because applications for scholarships are only available through Aug. 11. Scholarship awardees will be chosen during the week of Aug. 14.

There are a few ways to benefit from the program: All applicants who do not receive a full scholarship will still be eligible for a $500 partial scholarship toward the cost of their chosen program. All scholarships must be claimed by Aug. 21, 2023.

In the United States, Curaleaf currently operates in 19 states with 152 dispensaries. It’s also the largest vertically integrated cannabis company in Europe. 

Students who are interested can learn more about the scholarship and application process here.

Cannabis Reform in Nevada

In Nevada, home to University of Nevada, Reno, sweeping changes are coming to the industry.

The Las Vegas Sun reports that Senate Bill 277 allows adult-use cannabis customers to purchase up to 2 and a half ounces of cannabis flower or one-quarter ounce of THC concentrate, which is an improvement from one ounce and one-eighth ounces, respectively. 

Under the new law, which takes effect Jan. 1, 2024, retailers that offer both adult-use and medical cannabis products will be required to hold only one license rather than specific licenses for either.

Sen. Dallas Harris (D-Las Vegas) introduced the bill. “It’s going to cut down on some of that administrative burden for a lot of our operators, which are generally dual licensees to begin with,” Harris said. “It made sense when we originally set up our structure so that we had separate licenses because we had medical first, then we had adult use. But now given the industry is up on its feet, I think it just makes sense to streamline that process.”

The new law also contains a provision that creates an appeals process for ex-convicts who want to apply to the Nevada Cannabis Control Board (CCB) for an agent card, which allows individuals to work with cannabis in the state.

The law also lowers some of the annual and overhead fees levied by the CCB—as much as 90%, in some cases. The fee drops are substantial: The fee to issue a cannabis establishment license for a cultivation facility has been reduced from $30,000 to $3,000, and the renewal of such a license decreased to $1,000 from $10,000.

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Payment processing powerhouse Mastercard this week revealed the company is taking steps to prevent PIN-based debit card transactions for marijuana purchases, dealing a blow to a regulated cannabis industry already struggling with limited payment options for consumers.

On Wednesday, Bloomberg reported that Mastercard, the world’s second-largest payment solutions provider, had informed financial institutions and other payment processors to stop allowing marijuana purchases to be processed with debit cards. Because of tight federal restrictions on banks that do business with marijuana companies, even those legal under state law, most financial institutions decline to provide common banking services including credit card processing to such businesses.

In a statement, a spokesman for Mastercard said that the action was taken after it learned that cannabis dispensaries were accepting debit cards for pot purchases. 

“As we were made aware of this matter, we quickly investigated it,” the spokesman said. “In accordance with our policies, we instructed the financial institutions that offer payment services to cannabis merchants and connect them to Mastercard to terminate the activity.” 

“The federal government considers cannabis sales illegal, so these purchases are not allowed on our systems,” the Mastercard spokesperson added.

Dispensaries Look For New Solutions

As Mastercard’s shutdown of debit card purchases for weed began to take hold last week, cannabis dispensaries that had been using the process began to look for new payment solutions. Peter Su, director of specialty banking at Hanover Bank, has headed cannabis banking programs and served as a payment processing consultant for the industry. He said that he began fielding calls about the situation last week and is hearing from even more companies this week.

“My phones are ringing off the hook — people are asking for payment alternatives,” Su said.

Last year, some of the largest processors of ATM transactions, such as NCR Corp.’s Columbus Data Services, shut down another payment processing system popular with dispensaries known as cashless ATMs that let consumers use their debit card to process a cash withdrawal, which would then be used to pay for cannabis. Tyler Beuerlein, chief strategic business development officer of Safe Harbor Financial Services, a company that provides banking and lending to cannabis businesses, said the crackdown on electronic payment options leaves few alternatives for licensed marijuana retailers to conduct business with their customers.

“More people have migrated to PIN debit in the last year and a half as the cashless ATMs have had issues. If the PIN debit solutions go away, it leaves people back with ACH or cash,” said Beuerlein.

But many consumers consider ACH (automated clearing house) payments, which require purchasers to share their bank account and routing number with the dispensary, to be cumbersome and potentially risky. And cannabis operators would prefer to limit the transactions conducted in cash, which can leave retailers open to robbery and other theft.

Industry Seeks Legislative Solution

A proposed federal legislative solution, the Secure and Fair Enforcement (SAFE) Banking Act, would give cannabis companies legal access to traditional business banking services including credit card processing. But while the bill has bipartisan support in both chambers of Congress and has been approved by the House of Representatives on seven separate occasions, it has yet to receive a vote in the U.S. Senate.

Matt Darin, the CEO of Curaleaf, one of the world’s largest cannabis companies by revenue, said that the news about Mastercard’s crackdown on debit transactions for cannabis purchases “illustrates once again the urgent need for the federal government to recognize the cannabis industry as the tax-paying, job-providing sector that it is.” 

“Our industry is one of the fastest-growing sectors in the U.S., generating more than $3.7 billion in state tax revenue in 2022 and employing over 428,000 Americans,” Darin wrote in an email to High Times. “Furthermore, cannabis is legal for medical purposes in 40 states, for recreational purposes in 23 states, and an overwhelming 88% of Americans say that cannabis should be legalized across the country. When will the laws catch up?”

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The U.S. Cannabis Council (USCC) announced on June 28 that it has created Legalize America, which is the first United States’s Super Political Action Committee (or Super PAC) that is specifically dedicated to cannabis reform. A Super PAC is an “independent expenditure only political committee” that can receive unlimited contributions from various sources “for the purpose of financing independent expenditures and other independent political activity,” according to the Federal Election Commission.

“We’re excited to share that we’ve launched Legalize America, the nation’s first Super PAC devoted to cannabis reform. The new independent expenditure group will work to raise the profile of cannabis as a national issue in the 2024 election and beyond,” the USCC wrote on Twitter.

Legalize America also states how it plans to take action. “We are committed to working with advocates, industry professionals, and community leaders to create policies that support cannabis legalization in a thoughtful and responsible manner,” it stated on its website. “Our primary focus is on promoting federal legalization, expunging records for non-violent cannabis offenses, and ensuring that the benefits of legalization reach all Americans, regardless of race, ethnicity, or socioeconomic status.”

Legalize America has garnered support of numerous cannabis companies with the intent of raising awareness for cannabis reform in next year’s election and in the future. Legalize America Chair Matt Harrell, who also holds the position of vice president of government relations with Curaleaf, explains what Legalize America plans to accomplish. “Legalize America is committed to ending cannabis prohibition and advancing expungement efforts and responsible use,” said Harrell. “We will use all available tools—including scorecards, endorsements, and targeted independent expenditure campaigns—to advance cannabis reform, with the goal of creating a prosperous and equitable cannabis industry.”

David Culver, senior vice president of public affairs with the USCC, told Market Watch that congress is not doing its job in reflecting the will of the people. “Congress is stuck in the past,” Culver said. “They’re way behind what Americans want. It’s not unusual for Congress to be a lagging indicator.”

Legalize American Secretary Pete Meachum, also senior director of government affairs at the Cronos Group, explained that action is needed now to help push legalization along. “We believe the 2024 presidential election will be a pivotal moment in the fight to end cannabis prohibition,” said Meachum. “We are laying the groundwork now to use advertising, grassroots engagement, voter outreach and events to keep cannabis front and center throughout the campaign.”

Legalize America added that it plans to partner with “high-profile public figures and brands” to raise funds and support reform efforts. It also plans to work with legal dispensaries to ask consumers for “round up” donations.

The USCC member list currently includes 38 companies, such as Ayr Wellness, Cresco Labs, Green Thumb Industries, Scotts Miracle-Gro, Vicente LLP, Wana Brands, and more. It’s led by chair Jessica Billingsley of Akerna, Vice Chair Dan Pabon of Schwazze, Meachum as treasurer, and chair emeritus Christian Sederberg of Vicente Sederberg LLP.

News regarding the 2024 election continues to take shape, with candidates speaking in support or opposition of cannabis and other psychedelic substances. Last week, current Florida Gov. Ron DeSantis stated that if elected to become president, he would not decriminalize cannabis. “I don’t think we would do that,” he said in response to an individual who represents military veterans who could benefit from decriminalization. “If you do something with that, it could be goodnight right then and there. You could die just by ingesting that, so I think that that’s problematic.”

However in June, former New Jersey Gov. Chris Christie said that he would partially end the War on Drugs if he is elected. At a CNN townhall, he addressed a question from a mother whose son was put in prison for fentanyl use, asking what he would do “about the war on drugs, which has obviously failed so miserably.”

“End it,” Christie said. “I want to focus on treatment. Look, your son—and I don’t want to pretend to know him, but I know a lot of people have gone through this. And I’ve had some dear friends who have lost their life to this. He has a disease the same way heart disease, diabetes, cancer. It is a disease, and he can be treated.”

Back in December 2024, musician Afroman announced that he is also running for president in 2024 with the intent of legalizing cannabis. “There comes a time in the course of human events when change must be affected,” said Afroman’s campaign manager. “That time is now. Americans are suffering, and the status quo is no longer acceptable.”

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A recent report from The Denver Post analyzes the fallout of the post-pandemic cannabis industry in Colorado. While once the state reached a peak of $226 million in combined recreational and medical cannabis sales, current sales have decreased and small businesses struggle to stay afloat.

“The market’s just bad. It’s bad right now,” cannabis salesperson Val Tonazzi told The Denver Post. “There’s businesses closing, left and right.”

In February, Colorado’s medical cannabis sales decreased to $15 million, the lowest collection since retail sales began in 2014. March brought a slight increase in medical cannabis sales, approximately $17 million, but was $5 million less than March 2022. Likewise, March recreational sales were recorded at $122 million this year, but it’s a $17 million decrease from last year’s numbers.

On May 9, the U.S. Department of Health and Human Services announced a fact sheet detailing the “End of the COVID-19 Public Health Emergency.” While the nation and many of its industries return to normal operations, cannabis business owners continue to see ripples of oversupply of cannabis products, lack of demand, pricing dropping to record lows, and lack of cannabis tourism.

Over the past few years, many states bordering Colorado have approved recreational cannabis. This includes Montana and Arizona in 2020, and New Mexico in 2021, creating competition for Colorado.

Vangst, a cannabis job company, recently released its 2023 Vangst Jobs Report. The report states that there was a 2% drop in cannabis jobs, and Colorado was ranked as the second highest state for cannabis job losses. It was also ranked number six on a list of top cannabis jobs with less positions than states like California, Michigan, Illinois, Florida, and Massachusetts.

It isn’t just small cannabis businesses falling under hard times. Bigger companies, like Curaleaf, are also pivoting as well. In January, Curaleaf  closed down its offices in Colorado, California and Oregon, “as part of its continued effort to streamline its business.” According to Curaleaf CEO Matt Darin, this move was also made due to thriving black market competition. “We believe these states will represent opportunities in the future, but the current price compression caused by a lack of meaningful enforcement of the illicit market prevent us from generating an acceptable return on our investments,” Darin said in a press release.

The closure of cannabis businesses is affecting the real estate market as well. A National Association of Realtors report recently explained “a decline in commercial property purchases by marijuana industry-related businesses and a corresponding increase in leasing activity.”

The Denver Post spoke with local entrepreneur Renée Grossman, who founded five retail storefronts in Colorado since 2013, and also moved into cultivation and manufacturing as well. “There’s too many stores, there’s too much cultivation, there’s too many products,” Grossman explained to The Denver Post. “Right now, all the investors are sitting on the sidelines, and kind of waiting to time the bottom—and nobody knows exactly when that’s going to happen.”

Amidst the uncertainty of the situation, Grossman and many other business owners have had to lay off many of their staff to continue paying the bills. “Most companies I know are losing money, or they’ve shut down and scaled back,” said Grossman. “A lot of companies that are my size or smaller are really feeling the burn.” She also suggested that more mergers may take place in order to help bolster smaller businesses against larger companies.

Initially there was a drive for cannabis tourism to bring people to Colorado, but even as travel has become safer in the wake of COVID-19, the increase in states with recreational cannabis has caused a shift in interest. According to Native Roots Cannabis Company vice president of marketing, Buck Dutton, sales for 4/20 decreased from recent years: “…people don’t see the need to travel here to spend their 4/20 with us,” Dutton told The Denver Post. “The only expectation that it lived up to is that we thought it was going to be bad.”

Marijuana Industry Group executive director Truman Bradley likens Colorado’s current situation to “the ghost of Christmas future.” The excitement that drove sales for Colorado as the first state to legalize recreational cannabis has since slowed. Bradley stated that the only way Colorado can survive now is for the industry to “get leaner,” in terms of competition being thinned out. He also calls on state legislators to reevaluate legalization. “It’s critical that lawmakers understand that decade No. 2 of legalization needs to look fundamentally different from decade No. 1,” Bradley stated.

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When occupational asthma killed Lorna McMurrey, it should have set off alarms industrywide. But nobody spoke up, even as thousands of workers remain exposed to the same hazards.

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The Connecticut Department of Consumer Protection (DCP) recently informed three medical cannabis producers that they will receive an expanded producer license, which will allow them to work with both medical cannabis and adult-use cannabis products. 

DCP Commissioner Michelle H. Seagull said in a press release that this is one of the final steps toward a regulatory market sometime next year. “The Department’s priority is to have a safe, well-regulated marketplace for consumers,” said Seagull. “I am grateful to the Drug Control and Legal teams at DCP who have worked—and continue to work—tirelessly, since the passage of the law, toward a safe and successful market opening.”

Connecticut law states that sales can’t begin until 250,000 square feet of growing and manufacturing space is approved for adult-use. In a press release from the DCP, the department said that cannabis sales can’t proceed until the state’s four medical cannabis producers and cultivators have been approved. Currently, this includes Advanced Grow Labs LLC, Connecticut Pharmaceutical Solutions LLC, and Curaleaf LLC. One more application from Theraplant was received on Nov. 10, and the DCP is reviewing that application for license conversion.

Additionally, seven medical cannabis dispensaries also received confirmation that they’ve met the criteria for conversion to a hybrid cannabis license, however these do not contribute to the minimum 250,000 square footage requirement that will allow sales to begin.

Since Connecticut Gov. Ned Lamont signed a bill to legalize recreational cannabis in June 2021, the DCP has continually grown its department to meet the anticipated demands of a growing industry. The Drug Control and Legal Divisions department has increased to 38 people, and numerous business licenses have been approved. To date, this includes six micro-cultivation licenses, nine provisional cultivator licenses, and 27 retail licenses.

Just one month after Lamont signed the bill, Connecticut officials launched a cannabis education and information website to clear up questions that residents may have. In September, there had already been an expectation that sales could be delayed. “We’ve been suggesting that there will likely be sales by the end of 2022, and we’re still aspiring for that. Obviously, we have to see how things play out in the next few months,” Seagull said in September 2021. “It’s really important to us that we preserve the medical marketplace that currently does exist. It’s important to us that that market, which is working well and helping a lot of people, doesn’t get swallowed up.”

Earlier this year in May, more than 15,000 dispensary applications were submitted with anticipation of sales beginning in Connecticut soon. Additionally Gov. Lamont signed legislation earlier this year in May to address the ongoing practice of cannabis gifting that lies in a grey area of sales.

Most recently in September, the state launched a new educational campaign “to promote responsible cannabis use by adults.” “Protecting public health and safety includes providing people with the tools and knowledge to make informed decisions to keep their families safe,” said Lamont about the campaign. “We’re working to educate the public about the steps they can take to protect themselves and their families from accidental ingestion and over-consumption. We encourage adults who choose to use these products to do so responsibly.”

According to the 2022 MJBiz Factbook, Connecticut could collect up to $250 million in the first full year of sales, and $750 million by the fourth year.

Connecticut is one of New York’s eastern neighbors, and news of Connecticut’s progress arrived just one day after the New York Office of Cannabis Management announced its first round of license approvals. This included 28 “justice-involved individuals” and eight non-profit organizations. According to New York Gov. Kathy Hochul, the state plans to open its first 20 dispensaries by the end of 2022.

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