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Trouble for Ohio’s Medical Marijuana Program and an ‘Emerging Crisis’ in California: Week In Review

We’ve rounded up our top 10 articles to keep you up-to-date on the latest industry news.

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In the past week, Iowa and Alabama introduced decriminalization bills; medical marijuana was discussed in Georgia’s House and in Ohio, where the state auditor criticized the handling of medical marijuana licenses; a public hearing was planned for an adult-use legalization bill in Connecticut; a Massachusetts regulator suggested a government-run bank for the industry; California has an emerging “crisis” in its market and more.

  • A proposal to legalize recreational marijuana and reap the tax benefits in Connecticut will at least get a public hearing, although it remains to be seen whether the bill receives a vote in the House or Senate. “It’s imperative that we have robust conversations about cannabis, as more states around us consider legalization," said State Rep. Melissa Ziobron (R-East Haddam). Read more
  • Los Angeles has issued a total of 101 temporary authorizations to marijuana businesses since the plant became legal for recreational use and sales Jan. 1. Cat Packer, the head of the city’s Department of Cannabis Regulation, said her office has so far taken in over $2.2 million in licensing fees, far more revenue than was anticipated. Read more
  • An Iowa bill to reduce marijuana possession penalties is headed to the state Senate and if passed, would reduce penalties for possession of five grams of marijuana or less to a simple misdemeanor with no more than 30 days jail time and a maximum fine of $625. Supporters say it would save Iowans money and reduce the disproportionate number of African Americans in the criminal justice system. Read more
  • Pent-up demand and having only two dispensaries and one cultivation facility open locally has led to an early shortage of medical marijuana products in western Pennsylvania. Solevo Wellness in Squirrel Hill was closed Feb. 19, at least in part because it was low on product. Read more
  • Citizens for Sensible Cannabis Reform, the group behind two Detroit voter-approved medical marijuana initiatives, is weighing its options—including a possible appeal—after a Wayne County Circuit Court judge overturned one of the measures that sought to relax local control this year. "Currently, we are examining all options before moving forward with any course of action," said spokesman Jonathan Barlow. Read more
  • The California Growers Association (CGA) released a report this week indicating that California’s cannabis legalization process is teetering on the edge of “crisis.” Already, state licensing trends show that larger companies will have more than enough room to dominate the marketplace, and a lawsuit filed by CGA alleges that state loopholes allow those larger companies to “stack” unlimited numbers of small cultivation licenses next to one another, expanding their reach and boxing out small cultivators. Read more
  • Identical bills have been introduced in the Alabama House and Senate that aim to decriminalize, to some degree, the possession of small amounts of marijuana. The bills, introduced by Sen. Dick Brewbaker (R-Pike Road) and Rep. Patricia Todd (D-Birmingham) were scheduled for hearings this week. Read more
  • Georgia State Rep. Allen Peake is continuing to push medical marijuana legislation for students who are currently not allowed to ingest medical cannabis on school grounds. “These children need this medicine. It’s having a significant improvement on the quality of life for them,” Peake said. Read more
  • In a Feb. 21 letter, Ohio State Auditor Dave Yost responded to concerns from the Dept. of Commerce and ultimately decided not to “pause” the state’s medical marijuana licensing program after he identified what he called a “critical flaw” in the state’s cultivation license scoring system—namely, that administrators could, in theory, access and manipulate applicants’ results. In working to correct that error, the department stumbled on data input errors that were significant enough to push at least one company out of the 12 winning slots for large-scale growers and deny it a license that it should have rightfully earned. Yost said that such matters will now head to the courts and to any state appeals process. Read more
  • Massachusetts’ top cannabis official suggested that the state should consider creating a state-run bank to serve recreational marijuana companies, warning that an all-cash industry would create security risks and regulatory headaches. Recreational sales are scheduled to begin in July, and Cannabis Control Commission Chairman Steve Hoffman said no local banks or credit unions have committed to providing financial services to the industry, wary they will run afoul of federal restrictions. Read more

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