420 with CNW — ATA Asks DOT to Act as Marijuana Rescheduling Regains Focus

The American Trucking Associations (ATA) is calling on the Department of Transportation (DOT) to clarify how a pending federal plan to reclassify cannabis would affect drug testing for commercial drivers.

ATA’s COO, Dan Horvath, noted in a recent letter to the Transportation Secretary that the association is worried that reclassification could weaken the safeguards and testing requirements designed to protect safety-sensitive transportation workers. He added that while the ATA does not take a formal stance on cannabis legalization, it is committed to collaborating with the DOT and other stakeholders on preventing cannabis-related accidents.

The push to reclassify cannabis originally began under the Biden administration, and recent signals suggest the Trump administration may take further action on the proposal.

In his letter, Horvath noted that ATA had previously raised these questions with DOT officials, including during the tenure of former Secretary Pete Buttigieg. While Buttigieg testified before Congress that testing requirements would remain intact, ATA says it never received detailed explanations on how that would be ensured. Without certainty, Horvath warned, there could be gaps in federal oversight that would endanger both drivers and the public.

He noted that nearly 60 percent of all positive drug tests recorded in the Federal Motor Carrier Safety Administration’s Drug and Alcohol Clearinghouse since 2020 involved cannabis. Further, he wrote that research from the National Transportation Safety Board has identified cannabis as one of the most commonly detected substances in crashes involving fatal injuries.

The ATA letter also cited findings from a 2023 study, which linked recreational cannabis legalization to an estimated 1,000 fatalities nationwide each year, with higher death rates in states that legalized the drug earlier.

The letter highlighted several tragic examples where cannabis played a role in deadly crashes. These included a 2023 collision in Indiana that killed seven people, a Texas crash where a cement truck driver admitted to using cannabis the night before a wreck that killed a child and another motorist, and a 2022 accident in Oklahoma that took the lives of six teenagers.

Horvath argued that regular testing acts as both a deterrent and a means of detection, and removing that safeguard could make tragedies like these more common. He asked DOT to coordinate with the DOJ, the DHHS, and lawmakers to ensure that any policy change preserves the authority and resources needed to keep testing programs in place.

Cannabis industry firms, such as Cresco Labs Inc. (CNX: CL) (OTCQX: CRLBF), hope that the safety concerns raised by the ATA can be addressed so that responsible marijuana use isn’t sacrificed at the altar of the few people who consume the substance and endanger the lives of others.

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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW — Massachusetts Marijuana Regulators to Receive Public Comment on Social Consumption Site Regulations

Massachusetts marijuana regulators are seeking input from the public after approving a draft set of rules that could pave the way for cannabis use in public spaces and events.

The state’s marijuana control agency approved the proposed changes during a recent meeting following several days of detailed review. The regulations will be officially filed with the Secretary of State by the end of the week, triggering a mandatory public comment period.

The main goal is to create legal spaces where adults can buy and consume cannabis on-site, similar to how alcohol is sold and enjoyed in bars. This would be especially helpful for out-of-town visitors who can’t smoke in hotels or renters who face building restrictions. It also gives guardians a place to consume cannabis without exposing their kids to it.

Social consumption spaces were part of the original 2016 ballot initiative that legalized recreational cannabis in the state. Although these spaces were supposed to roll out in 2018, regulators chose to focus on opening retail shops after pushback from state lawmakers.

The new regulations outline three kinds of social consumption license categories. The first, a “supplemental” category, would permit existing dispensaries or growers to offer customers cannabis products on-site.

The second, a “hospitality”category, would enable non-marijuana businesses like gyms, salons, or movie theaters to offer cannabis use as an added feature. The third, an “event organizer”category, would make it possible for temporary cannabis consumption at public gatherings such as concerts or festivals.

To keep safety a priority, all licensees must have a plan for how attendees will get home if they’re impaired. There are also rules in place to protect employees working in these spaces.

The permits will initially be available only to businesses that fall under the agency’seconomic empowerment or social equity programs, as well as to small-scale cannabis businesses and co-ops. This exclusivity period is set to last five years.

Changes have been made to the event organizer license category in recent months. These include requiring local approval for events before seeking state authorization, granting towns the same authority they have over alcohol-related events, and capping event licenses to 24 days annually, with no more than five consecutive days per event.

Additional updates include simplifying employee credentialing. Workers employed by more than one cannabis company will now need just one badge instead of multiple. The rules will also allow cannabis businesses to offer packaged, non-marijuana food and beverages for sale.

Over the next few weeks, the agency will accept public input and host a hearing to gather feedback. More information will be shared during a public hearing on August 14.

The entire marijuana industry across the country, including firms like Cresco Labs Inc. (CNSX: CL) (OTCQX: CRLBF), will be hoping that this new phase of rolling out the cannabis industry in Massachusetts unfolds smoothly.

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420 with CNW — Congressional Committee Passes Measure Blocking DOJ from Reclassifying Marijuana

A congressional subcommittee has passed a new federal spending measure that includes language aimed at preventing the U.S. Department of Justice (DOJ) from reclassifying cannabis. The measure would also continue existing protections for state-run medical marijuana programs, although it introduces stricter rules for cannabis activity near parks and schools.

The House Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies (CJS) advanced the bill with a 9-6 vote. The measure will now move forward to the full committee for review and potentially be sent to the House floor.

This marks the second time lawmakers have inserted language into the spending bill that seeks to block efforts to reclassify cannabis.

The bill specifically states that no funds from the legislation can be used to move marijuana to a different category under the Controlled Substances Act (CSA) or remove it from the schedule entirely. The process has faced long delays, partly due to legal objections raised during administrative hearings.

A similar provision was included in a previous version of the CJS spending measure, but it never became law. Additionally, Republican senators tried to pass a separate bill in 2023 that would have blocked the administration’s rescheduling efforts, but that proposal never made it to a vote.

Meanwhile, the Drug Enforcement Administration (DEA) informed an administrative judge that cannabis rescheduling remains at a standstill. The hearings have been paused for over six months. A joint report submitted this month by both DEA lawyers and advocates shows that the two sides have yet to resolve their differences.

Still, advocates can take some comfort in knowing the new spending measure maintains language that prevents the DOJ from interfering with state-level medical cannabis laws. This safeguard has been included in every federal budget since 2014.

However, new language allows the DOJ to enforce penalties for selling marijuana within 1,000 feet of schools, colleges, playgrounds, and public housing, potentially increasing legal risks in those zones.

In addition to medical cannabis protections, the bill also upholds a separate clause that restricts federal interference in state-led hemp research, referencing the 2014 Farm Bill’s definition of legal industrial hemp.

In related developments, a former NFL player turned cannabis advocate met with Trump administration officials last week to discuss marijuana reform. Separately, a group of athletes and celebrities, led by former boxing champion Mike Tyson, urged President Trump to outpace former President Joe Biden on cannabis reform, including expanding pardons and improving access to banking for legal marijuana businesses.

The entire marijuana industry, including companies like Cresco Labs Inc. (CNX: CL) (OTCQX: CRLBF), will be watching how efforts to block marijuana rescheduling pan out, and how advocacy to advance marijuana policy reform helps in shaping federal drug policy.

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420 with CNW — Study Finds That Market Forces Are Reducing Biodiversity in Marijuana Plants

A new study on marijuana genetics reveals that the legal cannabis industry may be unintentionally reducing the plant’s genetic diversity. The push for faster-growing plants with higher cannabinoid content, mainly for economic and regulatory reasons, has led to a narrowing of the genetic pool.

The study, conducted by graduate student Caleb Y. Chen at California State Polytechnic University, Humboldt, draws from both genetic data and interviews with cannabis breeders. According to Chen, selective breeding practices in the current “post-prohibition” market are creating what he refers to as a genetic “bottleneck.”

While humans have always shaped cannabis genetics to suit their needs, recent breeding has focused narrowly on certain traits like high THC levels, a strong terpene profile, and consistency in chemical composition.

These choices may make sense in a market driven by regulation and consumer demand, but they come at a cost. In an earlier paper from 2021, Chen pointed out that many growers select high-THC strains not because they prefer them, but because state regulations and consumer expectations push them in that direction. As a result, genetic variation is being lost.

The issue isn’t exclusive to cannabis. Many crops face similar reductions in genetic variety due to selective breeding. However, cannabis seems especially vulnerable. The study highlights that what are often described as “wild” marijuana plants today are most likely just escaped domestic strains, not true wild varieties.

Natural processes like wind pollination can spread pollen from hybrid plants to local landrace strains, erasing their distinct genetic identities. This kind of contamination has been reported in countries like Thailand, Jamaica, India, and Mexico.

Chen warns that even without the history of prohibition, the cannabis plant is at risk of becoming genetically uniform. Today, only a small number of cultivars dominate the global market. These strains are treated much like other mass-produced crops, with little regard for preserving their genetic uniqueness.

He also points out that “craft marijuana,” while often used as a marketing label, represents a smaller, more diverse subculture within the industry. Some breeders and growers believe that current testing methods overlook certain compounds that contribute to the overall experience of using cannabis.

Chen’s research also touches on marketing practices, noting that commercial interests sometimes lead to misleading labels on cannabis strains. Growers may intentionally misname their products to meet consumer expectations or fit into regulatory categories.

The study concludes that modern cannabis regulations, falling product prices, and the push for higher yields are all contributing to reduced genetic diversity. It urges policymakers to recognize the importance of maintaining diverse cannabis genetics and recommends that breeders’ knowledge be taken seriously in future regulatory decisions.

It would be interesting to hear what major cannabis brands like Cresco Labs Inc. (CNX: CL) (OTCQX: CRLBF) think about concerns that marijuana genetic diversity is being sacrificed at the altar of commercial interests.

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420 with CNW — Marijuana Industry is Already Feeling Tariff Effects

Marijuana companies and related businesses are starting to feel the pressure from rising costs triggered by President Donald Trump’s unpredictable tariff policies. The trade actions, which disrupted long-standing global agreements, have raised fears of economic downturn and higher inflation in the U.S., affecting everything from basic supplies to more specialized equipment used throughout the cannabis industry.

Operators across the cannabis space, especially those relying on global supply chains, are facing higher prices on packaging, cultivation tools, raw materials, and product parts. Many companies are already being forced to reconsider where they source their materials, with some now seeking domestic options to sidestep the growing uncertainty overseas.

Some brands and retailers plan to raise their prices to offset these new expenses. They argue that profit margins were already slim due to heavy regulation and taxes, and the added burden from tariffs could tip the balance even more in favor of the unlicensed, underground market.

Trump’s “reciprocal” tariffs targeted countries like those in the EU and Southeast Asia, regions that supply vital gear such as payment systems and raw inputs for cannabis companies. Although he later paused most of these tariffs for 90 days, excluding China, the damage had already begun. China’s exports now face a 145% tariff due to a failed compromise with the U.S., further escalating the trade battle.

A blanket 10% tariff on goods from nearly 90 nations went into effect in early April, causing a sharp drop in U.S. stock markets. This steep decline erased trillions in value over just two days. Although stocks bounced back after the policy was softened, the cannabis sector’s main investment fund still hovered near record lows.

Industry leaders say the financial hit is real. Arnaud Dumas de Rauly, a marijuana consultant and trade group chair, said these new costs are a direct threat to the industry’s growth and profits. “We’re exposed to global supply shocks,” he warned, “and they’re getting more expensive, fast.”

Construction companies working with marijuana firms have seen aluminum, wiring, and security systems jump by as much as 40% in cost. Materials like steel framing and surveillance tools—often imported from Germany and China—are costing significantly more. Procurement is also shifting. Price quotes now expire in just days, and contractors are demanding more upfront money to lock in costs, putting extra strain on company budgets.

Vape brands are hit especially hard. Companies like Pax rely heavily on parts from China, including batteries and devices. Due to overlapping tariffs from both the Trump and Biden administrations, Pax now faces a staggering 150% combined import tax on many of its products. Even alternative manufacturing bases, like Malaysia, are no longer safe from rising trade barriers.

The industry is navigating a new reality: unpredictable tariffs, rising prices, and supply chain disruption. These challenges are forcing operators like Cresco Labs Inc. (CNX: CL) (OTCQX: CRLBF) to adapt quickly and rethink how they do business in an increasingly unstable global trade environment.

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420 with CNW — PA Senate Panel Rejects Provision to Sell Recreational Cannabis Using State Stores

A proposal backed by Pennsylvania Democrats to allow adults to buy recreational marijuana from state-run stores has been blocked by a Senate panel. The bill was voted down 7-3 by the Senate Law and Justice Committee, with one Democrat siding with Republicans to oppose it.

State Senator Dan Laughlin, who leads the committee, supports the idea of legalizing cannabis. However, he voiced strong opposition to selling it through government-operated shops. Laughlin argued that this model would sideline small businesses and entrepreneurs, pose logistical complications, and potentially invite legal trouble given the federal ban on cannabis.

What happens next in Pennsylvania’s ongoing debate over recreational cannabis remains uncertain. Matt Bradford, the state House Majority Leader, urged Senate Republicans to bring forward a legalization plan that could gain enough support to pass. While the House has already taken a clear position, Bradford noted that it’s now the Senate’s turn to propose a version that can secure the necessary 26 votes.

The bill, sponsored by Democratic Representatives Rick Krajewski and Dan Frankel, aimed to keep the cannabis market from being overtaken by large corporate players. Supporters argue that public health and consumer interests would be better protected under state management.

Critics, however, say the model is untested and risky—no other state has implemented a government-run cannabis system. They also argue that expanding the existing medical marijuana framework would be a more practical path.

Some Democrats on the Senate committee signaled they could support a compromise approach similar to one Laughlin proposed during a previous legislative session. That version would establish an oversight board and allow already-licensed medical marijuana providers, most of which are large firms, to begin selling recreational products.

Laughlin noted that his proposal isn’t ready for a vote yet.

After the committee’s decision, Krajewski expressed disappointment that Laughlin dismissed the bill without offering amendments or engaging in serious discussion, especially with budget deadlines looming. “We followed his lead and sent a bill,” Krajewski said. “Disagreeing is fine, but that’s why negotiation exists.”

Laughlin said he scheduled the vote quickly to make it obvious the measure lacked enough support to advance. “I knew it wasn’t going anywhere,” he said. “Better to show that now than drag it out.”

He also raised concerns about the expense of creating state-controlled cannabis dispensaries, saying it could cost hundreds of millions before any revenue is generated. “That’s a hard sell when private businesses are already prepared to step in once legalization happens,” he added.

Leading marijuana firms like Cresco Labs Inc. (CNX: CL) (OTCQX: CRLBF) will be watching how lawmakers in Pennsylvania reach a consensus on adult-use marijuana sales as the reform movement makes progress in different jurisdictions.

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420 with CNW — Florida House Unanimously Passes Bill Making MMJ Cards Free for Veterans

Florida House legislators have come together in full agreement to pass a measure that will benefit military veterans by removing state fees tied to obtaining medical cannabis cards. Under the new legislation, veterans will no longer need to pay registration or renewal fees for their medical cannabis certifications, effectively making the process free for them.

The measure, House Bill 555, introduced by Republican Representative Alex Andrade, cleared the House with a unanimous 110-0 vote after moving through earlier committee stages. Initially, the proposal aimed to make broader updates to Florida’s medical cannabis system, such as allowing patients to grow cannabis at home and recognizing out-of-state medical cannabis cards.

However, those more ambitious elements were taken out by the House Health Professions and Programs Subcommittee, which replaced the original language with a simplified version focusing only on minor adjustments.

Two main changes remain in the final version. First, instead of having to renew their medical cannabis cards every year, patients would only need to do so every two years. Second, the bill eliminates the $75 fee typically required to register or renew a medical cannabis card for anyone who has served in the military. According to the bill’s updated language, the state would be prohibited from charging veterans for the renewal, issuance, or replacement of these cards.

During the debate on the House floor, Democratic Representative Daryl Campbell expressed his appreciation for the measure, noting that veterans often need medical cannabis at higher rates than the general public. He praised the measure for easing financial stress and simplifying the process, saying it allows people to focus more on their treatment rather than getting caught up in bureaucratic red tape.

If signed into law, the changes would go into effect on July 1.

In related developments, the Florida Senate has advanced other legislation affecting the broader cannabis and hemp landscape. One measure targets hemp-derived products, including THC-infused drinks. The proposal would ban any synthetic cannabinoids, such as delta-8 THC. It would also cap naturally occurring delta-9 THC in hemp products at 5mg per serving and no more than 50mg per package.

The Senate also passed a more expansive agricultural measure this month. Among its provisions is a ban on fungal spores used to grow mushrooms that contain compounds like psilocin and psilocybin. The move followed a House committee’s decision to advance a similar measure in its chamber just one day earlier.

Such efforts by lawmakers to make it easier for military veterans to access medical marijuana products is a move that industry actors like Cresco Labs Inc. (Cboe CA: CL) (OTCQX: CRLBF) would welcome as a progressive approach to increasing access to needed cannabis treatments.

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420 with CNW — How U.S. Marijuana Companies Are Responding to President Trump’s Tariffs

Marijuana firms and related businesses are adjusting quickly to changing U.S. trade policies, particularly under the tariff strategies introduced by the Trump administration. Many of these businesses rely heavily on global suppliers, especially for packaging and manufacturing, and the tariffs have added new pressure to an already complex supply chain.

It remains to be seen what innovations marijuana firms like Cresco Labs Inc. (OTCQX: CRLBF) (CNX: CL) (FRA: 6CQ) will introduce to cope with the…

420 with CNW — How U.S. Marijuana Companies Are Responding to President Trump’s Tariffs

Although there have been efforts to boost U.S. manufacturing, the cannabis industry isn’t yet equipped to meet growing demand domestically. Packaging, for instance, often requires specialized technology that’s still lacking in the U.S., making overseas production necessary.

Some companies are taking steps to move parts of their operations back home. Custom Cones USA, for example, shifted its production of plastic pre-roll tubes to the U.S. to cut down on long shipping times and reduce warehousing needs. Still, the bulk of their key products are made in countries like India, Indonesia, and China. The sharp increase in tariffs, including a recent 145% hike on certain Chinese goods, has made importing even more expensive.

Despite efforts to relocate some production, there are limitations. U.S. facilities often can’t match Chinese manufacturers’ flexibility or low costs, especially for custom or small-batch orders. As a result, industry leaders say higher prices on consumer products like pre-rolls may be unavoidable if tariffs remain.

Ispire Technology, a marijuana-focused offshoot of Aspire, has already started shifting manufacturing from China to countries such as Malaysia, hoping to offset rising costs. The company is also leaning into pod-based vape systems, which reduce recurring hardware expenses and the tariff burden on components.

Meanwhile, some businesses are setting up new distribution channels. Custom Cones, for example, plans to ship directly to Canada from its Indonesian plant to maintain its supply chain amid growing trade tension between Canada and the U.S.

On the logistics side, companies such as Talaria are working to manage rising operational costs by automating warehouses, optimizing delivery routes, and partnering with more U.S.-based suppliers. But they, too, face uncertainty, especially with vehicle imports subject to future tariff changes.

Other businesses, like ZZZ’s Collective, are sticking with international suppliers despite shrinking profit margins, prioritizing consistency and customer trust over short-term savings.

Many in the industry warn that if economic conditions worsen or tariffs stay high, consumers will eventually see higher prices. Some worry that higher prices and taxes could drive buyers back to the black market, undermining efforts to build a legal, stable cannabis industry.

It remains to be seen what innovations marijuana firms like Cresco Labs Inc. (OTCQX: CRLBF) (CNX: CL) (FRA: 6CQ) will introduce to cope with the increasingly challenging business environment in light of the trade war.

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420 with CNW — Why M&A Activity Could Be Declining in the Marijuana Industry

According to statistics from Viridian Capital Advisors, a data analytics and investment banking firm based in New York, there was a 33% drop in the value of mergers and acquisitions (M&A) from the $1.74bn in 2023 to the $1.16bn registered last year. Frank Colombo, the MD of Viridian discussed a number of factors that could explain this trend.

Colombo explains that the cash situation within the marijuana industry is very tight. He adds that many M&A deals have tanked because firms have been trying to conserve cash during the recent two years.

He explains that the motivation behind marijuana M&A activity has also changed. Previously, companies were in a race to buy out every business they could find in states with legal marijuana markets. However, that “land grab” soon taught companies that it wasn’t profitable to have a presence everywhere. Having just a pair of retail outlets in a state proved to be untenable. Emphasis has now shifted to consolidating a company’s footprint with a specific market rather than being spread out thin all over the place.

Colombo cites the example of Acreage Holdings that went into a frenzy buying up every small marijuana business that was on sale. Their approach failed to bring in profits, and Acreage itself was acquired by Canopy Growth.

Another reason he cites for declining M&A activity is the current decline in cannabis stock prices. Many M&A deals are completed using stock or cash. Given that cash is tight and stock prices aren’t at their best, it is hard for companies to negotiate mergers and acquisitions based on stock since shares aren’t as attractive in this current environment as they once were. Since firms are reluctant to get further into debt and stocks aren’t a good option, companies have decided to scale down or halt M&A activity.

Colombo also points out that there are a number of challenges involved in integrating businesses, not just in the cannabis industry but in all industries, after a merger or acquisition. For example, the different businesses have their own financial systems and cultures and it becomes difficult to merge those elements.

He points out that M&A activity is likely to stay down for a while given the existing market conditions. However, consolidation within markets is bound to continue as businesses invest in deepening their presence in specific markets. Markets will continue to have a few big firms dominating that area and there will be many small players also trying to make their mark. Those that fail will still end up being acquired by the larger and more successful players, and the trend will continue.

It remains to be seen how companies like Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) will navigate these market conditions and leverage available opportunities to cement their presence in their chosen markets.

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