420 with CNW — Fresh Lawsuit Filed Challenging Michigan’s New Cannabis Tax

Michigan’s legal cannabis sector has launched a second legal challenge against a recently implemented 24% wholesale tax. According to the lawsuit, the levy, which took effect at the start of the year, pushes the overall tax burden on marijuana beyond limits established in the state constitution.

Rose Tantraphol, speaking on behalf of the Michigan Cannabis Industry Association, said the system effectively layers one tax on top of another. She explained that the wholesale levy operates similarly to a sales tax, meaning it is applied before the standard 6% retail tax. As a result, customers end up paying tax on top of an already taxed product, a practice commonly referred to as tax pyramiding.

The contested levy also comes in addition to a separate 10% excise duty already applied to cannabis purchases. Industry representatives argue that the combined effect is beginning to weigh on sales figures.

Data released by the state Cannabis Regulatory Board suggests a noticeable decline in revenue following the tax’s introduction. Sales dropped from about $269 million in December last year to roughly $226 million in January, a decrease of nearly $43 million. While February figures showed a slight recovery to $234 million, the association maintains that the trend raises concerns about long-term stability.

Tantraphol warned that the financial pressure could threaten jobs across the sector. She noted that the cannabis industry currently supports around 47,000 positions statewide, adding that continued strain from taxation could put that workforce at risk.

The wholesale tax was approved last year as part of a broader plan to address infrastructure funding. However, a separate lawsuit, still under review by the state Court of Claims, challenges the legitimacy of the tax on procedural grounds.

That case argues the legislation should have required a supermajority vote in the state legislature because it effectively alters a voter-approved law. Michigan voters legalized recreational marijuana in 2018, and any changes to that initiative typically require approval from three-quarters of both legislative chambers.

State officials maintain that the tax does not modify the original legalization framework. Instead, they argue it is part of a separate funding mechanism for road improvements, and therefore does not trigger the higher voting threshold.

Meanwhile, State Representative Joe Aragona said that if the courts strike down the measure, funding for road projects would not disappear but would need to be sourced from other areas of the budget. He added that the governor’s administration remains confident in its legal position as the case moves forward.

Complaints about excessive taxes on legal marijuana in the U.S. aren’t new. Similar complaints have been raised in many jurisdictions where ancillary firms like Innovative Industrial Properties Inc. (NYSE: IIPR) have cannabis businesses as clients.

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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 — Federal Agencies Retain Employee Marijuana Testing Guidelines

The U.S. Health and Human Services Department (HHS) announced that federal workplace drug testing programs will continue screening for cannabis metabolites, maintaining the current approach.

The announcement comes despite a December 2025 executive order by President Trump which called for cannabis to be reclassified from Schedule I to Schedule III under the Controlled Substances Act as quickly as federal procedures allow.

Earlier last year, the agency made a narrower adjustment by updating the terminology used in reporting cannabis test results to align with modern scientific standards. However, marijuana’s legal status at the federal level remains unchanged. It is still categorized as a Schedule I substance, a classification reserved for drugs considered to have a high risk of misuse and no accepted medical use.

In recent years, many states have approved measures allowing recreational or medical cannabis use. Ballot initiatives in both 2020 and 2022 expanded access further, and at least 24 states now permit recreational use.

This patchwork of state laws has created compliance challenges. Legal protections for marijuana users differ widely depending on location, making it harder for employers to apply consistent policies across jurisdictions.

For example, Colorado allows recreational cannabis use but still gives employers the authority to act on drug test results when making employment decisions. In contrast, workers in Illinois are protected from disciplinary action if they use legal products such as cannabis outside of work hours and away from the workplace.

Some employers have also adjusted their internal policies in response to shifting attitudes and labor market pressures. In 2021, Amazon announced that it would stop including cannabis in its standard drug screenings for most positions, except those subject to Department of Transportation regulations.

Even as laws evolve, many experts advise human resources teams to maintain clear workplace drug policies. Most state laws that permit cannabis use still allow companies to ban on-the-job consumption and impairment during work hours.

If federal authorities eventually reclassify cannabis, employer obligations could shift, particularly in areas such as disability accommodations under the Americans with Disabilities Act. Legal analysts note, however, that even a move to Schedule III would not remove cannabis from the list of controlled substances.

Until any federal reclassification takes effect, employers, particularly those in regulated industries, are expected to follow existing rules. For others, state-level protections may apply, but no nationwide standard currently requires accommodation for marijuana use.

As things stand, firms like Innovative Industrial Properties Inc. (NYSE: IIPR) have to use their discretion to design appropriate workplace policies guiding their employees on what is or isn’t acceptable with regard to marijuana use.

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420 with CNW — New York Regulators Say Marijuana Sales Could Surpass California’s

New York’s legal marijuana industry has started 2026 with strong momentum, following a year of rapid growth in 2025. State officials say sales during the opening weeks of the year suggest the market could reach new highs before the year ends.

During a recent meeting of the state Cannabis Control Board, regulators reported that licensed cannabis retailers generated nearly $250 million in revenue in just the first three weeks of February. According to the state’s Office of Cannabis Management, that early performance places New York on track to reach roughly $2.6 billion in total cannabis sales by the close of 2026.

For several years, New York’s adult-use marijuana program was widely viewed as a market with enormous potential but limited early results. The rollout faced repeated obstacles, including lawsuits that challenged licensing decisions and delays tied to regulatory procedures. Those setbacks slowed the launch of retail stores and constrained early supply.

Momentum began to build in 2025. Updated data from the OCM show that licensed cannabis businesses in the state recorded $1.7 billion in sales last year. That total represents a dramatic jump from 2023, the first full year of legal sales in New York.

John Kagia, OCM’s acting executive director, predicted that the market could expand even further if current growth patterns continue. Under that scenario, yearly cannabis sales in the state could climb to nearly $5 billion by 2028. Such growth would place the state at the top of the national cannabis market by revenue.

During the same meeting, the Board approved 20 additional business licenses, further expanding the regulated marketplace.

New York now has 2,161 licensed marijuana businesses. The breakdown includes 245 cultivators, 232 licensed distributors, and 532 processors. There are also 321 microbusinesses permitted to cultivate and sell cannabis directly to consumers and 506 licenses for retail dispensaries.

Data from the OCM shows that 56% of all marijuana business licenses have gone to applicants who qualify under the state’s social equity programs. That total includes 325 retail operators.

Even with strong sales and an expanding retail network, regulators say the industry still faces supply concerns. Some observers argue that current cultivation levels may not be enough to meet rising demand.

During the board meeting, officials acknowledged those concerns and pledged to review cultivation license applications that were submitted in late 2023 but have not yet been finalized.

This good news coming from New York State after a stuttering start to its legal marijuana market is likely to be welcomed by industry actors across the board, such as Innovative Industrial Properties Inc. (NYSE: IIPR).

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420 with CNW — New Wisconsin Bill Could Legalize Medical and Recreational Cannabis

Wisconsin Democratic lawmakers recently introduced legislation that would legalize marijuana for both recreational and medical use, renewing a long-running debate as the state continues to lag behind nearby Midwestern neighbors on cannabis policy. Michigan and Illinois already permit recreational cannabis, while Minnesota has moved in the same direction. Wisconsin, by contrast, still treats most marijuana possession as a crime.

GOP lawmakers have previously put forward their own marijuana-related proposals, though those plans have focused narrowly on medical use under strict oversight.

Meanwhile, Democrats are calling for broader access that includes recreational sales. They argue that their bill reflects shifting national attitudes and recent changes to federal hemp policy, which they argue have created uncertainty for farmers and small businesses. They contend that broader legalization would provide clarity, generate revenue, and reduce arrests for low-level offenses.

Under the Democratic proposal, adults 21 and older would be allowed to purchase and possess marijuana for recreational purposes. Medical cannabis would be available to adults over 18, as well as minors with approval from a parent or guardian. The bill also includes language allowing the state to revisit past cannabis-related convictions and outlines a licensing system for cultivation and retail sales.

Advocates say agriculture could be one of the biggest beneficiaries. Phillip Scott, who leads the Wisconsin Hemp Farmers & Manufacturers Association, said a legal cannabis market could create thousands of jobs and keep production local, rather than pushing consumers to neighboring states.

Polling in Wisconsin has shown broad public support, including backing from a substantial share of Republican voters alongside strong approval among independent voters and Democrats.

Despite that support, legislative progress has been slow. In 2025, GOP Senator Patrick Testin introduced a measure to establish a tightly regulated medical program, but it failed to gain traction. Assembly Speaker Robin Vos has consistently opposed recreational cannabis, and GOP leaders have struggled to agree on a unified medical framework.

Instead, recent Republican efforts have centered on hemp regulation. Wisconsin’s hemp industry expanded rapidly after the 2018 federal farm bill created a legal gray area for low-dose THC products. That loophole was closed late last year during negotiations to end the 2025 government shutdown, leaving producers scrambling to adjust.

Since then, bipartisan proposals have emerged to reshape hemp oversight. One would adopt a tiered regulatory model similar to alcohol distribution. Another would largely preserve the current market while adding safety and labeling requirements for products such as beverages, vapes, and gummies.

Even with competing ideas on the table, Democratic lawmakers say discussions with Republicans are ongoing as debate over the newly introduced legalization bill continues.

The eventual passing of a law legalizing both medical and adult-use marijuana in Wisconsin could create room for enterprises similar to Innovative Industrial Properties Inc. (NYSE: IIPR) to emerge and serve the broader marijuana ecosystem.

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420 with CNW — Study Links Long-Term Marijuana Use to Superior Mental Performance Among Seniors

Older adults who have used marijuana at some point show stronger cognitive abilities than those who report little or no prior exposure, according to new research published in the Journal of Studies on Alcohol and Drugs.

Using data from a large national cohort in the UK of over 500,000 participants, the team examined the relationship between marijuana use, brain structure, and cognitive function in adults between the ages of 40 and 70.

Participants provided detailed information about their lifetime marijuana consumption. They also underwent brain imaging using magnetic resonance imaging and completed standardized tests designed to measure different aspects of thinking and memory. The tests evaluated areas such as learning ability, recall, mental speed, and the capacity to shift between tasks.

According to the researchers, individuals with a greater history of marijuana use tended to have larger brain volumes in specific regions known to contain high concentrations of cannabinoid receptors. These areas included the anterior cingulate cortex, caudate, hippocampus, and putamen, all of which play key roles in memory, emotional regulation, and executive function.

The study also found that higher lifetime cannabis exposure was linked to stronger performance across multiple cognitive measures. Participants with more extensive past use generally scored higher on assessments of memory, processing speed, learning, and flexible thinking.

The authors noted that the results align with emerging research pointing toward possible neuroprotective effects associated with marijuana use in older populations.

They added that their findings contribute to a growing scientific conversation rather than providing definitive conclusions. Still, they noted that the observed associations raise the possibility that cannabis could play a role in supporting brain health as people age, particularly in regions sensitive to cannabinoids.

Paul Armentano, deputy director of the National Organization for the Reform of Marijuana Laws (NORML), said the study challenges deeply rooted assumptions about marijuana users. He argued that negative stereotypes surrounding marijuana and cognition remain widespread and often go unexamined. Armentano added that research contradicting these stereotypes rarely receives sustained attention in mainstream news coverage.

The results are consistent with findings from several recent studies. A study in Israel involving over 67,000 older adults found that participants with prior marijuana use performed better in areas including executive function, attention, memory, and processing speed. That study also linked past use with a slower rate of decline in executive abilities over time.

Similar conclusions were reached by researchers in Denmark, who observed significantly less cognitive deterioration among marijuana users compared with non-users over time. In the United States, a separate study focusing on older adults living with HIV found that those who reported occasional marijuana use demonstrated stronger cognitive performance than those who did not use the drug.

As more studies dispel the common misconceptions about marijuana, more people are likely to warm up to the substance and drive innovation within the industry. The accelerated growth of the industry could then open up new business opportunities for ecosystem firms like Innovative Industrial Properties Inc. (NYSE: IIPR).

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420 with CNW — Government-Funded Research Says Cannabis Users are Being Wrongfully Jailed for DUI

Government-funded research is raising serious concerns about how cannabis driving laws are being enforced in the United States. According to a new scientific study, many cannabis users are being arrested, charged, and even jailed for driving under the influence despite showing no real signs of being impaired. The research suggests that current DUI laws related to marijuana are not based on sound science and are unfairly punishing innocent people.

In almost 20 U.S. states, lawmakers use what are known as per se or zero-tolerance THC laws. These laws set a fixed amount of THC in the blood that automatically labels a driver as impaired. This system was copied from alcohol laws, where blood alcohol levels are a reliable way to measure intoxication. However, the study shows that cannabis does not work the same way as alcohol in the human body.

THC, the main psychoactive compound in cannabis, behaves very differently from alcohol. Alcohol usually leaves the body within one or two days. THC, on the other hand, can stay in the bloodstream for days or even weeks, especially in regular users. This means a person can test positive for THC long after the effects of cannabis have completely worn off.

To understand this better, researchers studied 190 heavy cannabis users. The participants were asked to stop using cannabis for 48 hours. After this period, their blood THC levels were tested, and they were also observed using a driving simulator. The results showed that many participants still had THC levels above legal limits even though they showed no signs of poor driving or impairment.

The study found no clear link between the amount of THC in a person’s blood and their ability to drive safely. This matches earlier research that also showed weak or inconsistent connections between THC levels and crash risk. While cannabis use may slightly increase the risk of accidents, that risk is much lower than the risk linked to alcohol use.

Medical and laboratory experts have criticized current cannabis DUI laws, saying they lack scientific credibility. They warn that relying only on blood THC levels can lead to innocent people being jailed even when they are sober and driving safely.

The researchers conclude that better methods are needed to identify truly impaired drivers. Instead of depending only on blood tests, they recommend combining roadside observations with toxicology testing. Overall, the National Institutes of Health-funded study highlights a serious flaw in existing cannabis DUI laws and calls for reforms that protect public safety without criminalizing people unfairly.

As drug laws around the country evolve, a bigger task will be to roll back many of the prohibitionist perceptions that show up in different aspects, such as laws that regard traces of THC in blood as proof of intoxication. When these vestiges of prohibition are identified and addressed, the industry and its ecosystem players like Innovative Industrial Properties Inc. (NYSE: IIPR) will move a step closer to truly thriving.

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420 with CNW — GOP State AGs Oppose Trump’s Plan to Reschedule Marijuana

A group of GOP state attorneys general is pushing back against President Donald Trump’s move to reclassify cannabis, arguing that marijuana should remain among the most tightly controlled substances due to health and safety concerns.

In a recently released joint statement, AGs from Iowa, Indiana, Idaho, Louisiana, Kansas, Nebraska, Wyoming, and Oklahoma said they have long rejected calls to loosen federal restrictions on marijuana and believe recent scientific findings reinforce their position.

They also pointed to what they described as real-world consequences of wider marijuana access, citing damage they say the drug has caused in their states. Among their concerns is what they described as a sharp rise in impaired driving cases, which they said are difficult for law enforcement to detect and prosecute.

The group noted that its members had shared their objections with the White House and expressed appreciation for what they described as the administration’s willingness to listen. Still, they said they are troubled by the executive order directing the U.S. Attorney General to move forward with the rulemaking process to place cannabis in Schedule III.

They added that they plan to closely review the order and consider next steps, emphasizing their intent to protect public health and ensure community safety.

In a separate announcement, South Dakota AG Marty Jackley said he and other attorneys general participated in a conference call with White House officials to discuss the executive order following the president’s signing event. Jackley said he appreciated what he described as ongoing communication between the administration and state law enforcement leaders.

Jackley also stressed that reclassifying marijuana would not amount to nationwide legalization. He noted that federal law would still prohibit marijuana from being prescribed by doctors unless it receives approval from the Food and Drug Administration. In South Dakota, he said, recreational use would remain illegal, and medical use would continue to be allowed only under strict conditions, including a valid prescription, a medical card, and purchases from licensed facilities.

The attorneys general’s criticism comes after GOP legislators in the House and Senate sent letters to Trump urging him to abandon plans to reclassify marijuana. Trump publicly brushed aside those objections, arguing that most Americans favor the policy shift and that cannabis has helped people dealing with serious medical conditions. He also referenced friends of his own who, he said, had benefited from its use.

While the proposed change would not make marijuana legal at the federal level, it would have significant practical effects. It would allow state-licensed marijuana businesses to claim standard federal tax deductions under Section 280E of the Internal Revenue Code. The change would also ease restrictions on scientific research, making it simpler for researchers to study marijuana compared with drugs that remain in Schedule I.

The opposition from sections of the GOP notwithstanding, the long-awaited change to the classification of marijuana at the federal level could improve the conditions under which marijuana companies operate at state level, and that would in turn open up new opportunities for companies similar to Innovative Industrial Properties Inc. (NYSE: IIPR) to be created to serve within the marijuana ecosystem.

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420 with CNW — Consumption Lounges Open New Opportunities for Marijuana Firms

Marijuana consumption lounges are reshaping the hospitality industry with experiences that blend social spaces and regulated cannabis use. What started as a niche concept with events like edible-friendly yoga or art sessions has developed into a broader push for dedicated spaces where adults can gather and consume legally.

According to Dale Sky Jones, chancellor of Oaksterdam University in Oakland, these venues represent the next significant development for the legal cannabis sector.

Jones argues that the appeal of lounges goes far beyond novelty. Operators who hope to succeed must handle compliance, consumer education, and guest safety with the same care that traditional hospitality businesses give to food and beverage service. Done well, she says, lounges can strengthen brand identity and open the door to new revenue opportunities.

According to Jones, the customer experience forms the backbone of any successful operation. Everything from interior design to staff training affects how visitors feel when they walk through the door. Air filtration, sound management for events, and thoughtful floor plans all contribute to what she described as a smooth and enjoyable visit.

Lounges also give businesses room to experiment. Operators are hosting comedy shows, concerts, and hybrid events that blend traditional nightlife with regulated consumption. Tribal governments may have an even stronger chance to innovate, since they can integrate cannabis into casinos, hotels, or other entertainment properties.

Even so, operators face significant challenges. State and local rules often treat cannabis separately from alcohol, leading to tougher regulations and higher insurance exposure for lounge owners.

Public education remains another hurdle. According to Jones, many policymakers still do not understand how the consumption lounges work or how they differ from unregulated consumption. She called on industry leaders to help educate local and state officials so that lounge models can expand responsibly.

Looking ahead, Jones believes cannabis brands most likely to succeed are those that focus on building recognizable lifestyle experiences. Cannabis products cannot move across state borders, she said, but a brand’s atmosphere and culture can. She also imagines a future where marijuana becomes part of everyday activities, including offerings tailored to older adults or pet-friendly environments.

Jones urged operators to approach the growing sector with a mix of creativity and accountability. By emphasizing safety, transparency, and thoughtful engagement with the community, she said, lounges can help set a new standard for what modern cannabis hospitality looks like.

As consumption lounges gain traction around the country, new business opportunities could open up for cannabis ecosystem players like Innovative Industrial Properties Inc. (NYSE: IIPR) that can tweak their offerings to address this emerging need.

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420 with CNW — Florida Authorities Relent to Pressure, Advance Marijuana Ballot Initiative

Florida’s long-running fight over a proposed recreational cannabis amendment took another turn this week after state election officials confirmed they had completed a key step that a pro-legalization group accused the DeSantis administration of deliberately delaying.

Smart and Safe Florida, the organization behind the proposal, filed a petition with the Florida Supreme Court in October, accusing the state of stalling the ballot certification process. On Tuesday, Attorney General James Uthmeier urged the court to dismiss the case, noting that the action the group sought had been carried out the day before.

Maria Matthews, the director of the Division of Elections, issued the required letter confirming that the group had collected enough verified signatures to move the measure forward.

According to the state’s filing, Smart and Safe’s lawsuit requested that the court compel officials to send the acknowledgment letter and advance the petition to the attorney general. The state argued that the issue is now moot because the letter has been delivered and the proposal sent along for further review.

This marks the second lawsuit the group has filed over the proposed amendment. The latest legal move comes months after the recreational marijuana measure fell short during the 2024 election cycle. While 56% of voters backed legalization, Florida law requires at least 60% for a constitutional change.

The defeat followed a high-profile effort by Governor Ron DeSantis and several state leaders who campaigned aggressively against the initiative. They warned that expanding access to marijuana would harm communities and invite corporate influence, turning the issue into one of the most contentious fights of the year.

In its October lawsuit, Smart and Safe said it informed the election division in August that the campaign had far exceeded the number of verified petitions needed to trigger the next step in the process. The group said it had secured over 660,000 verified signatures, more than triple the minimum required to begin review.

Despite the early notification, no acknowledgment letter was issued for months. Smart and Safe argued that the delay was intentional and part of a broader effort to hinder the initiative. The group pointed to an October 3 directive from the Secretary of State instructing county supervisors to invalidate up to 200,000 petition signatures.

According to the order, organizers did not include the full text of the proposed amendment in certain mailings, which the state said violated petition rules. The decision wiped out nearly one-fourth of the signatures required for next year’s ballot and was the core of the group’s lawsuit.

The wider marijuana industry, including allied firms like Innovative Industrial Properties Inc. (NYSE: IIPR), will be glad that the effort in Florida has notched this step in the process of making its way onto the ballot.

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420 with CNW — Activists in Oklahoma Withdraw Ballot Measure to Legalize Marijuana in 2026

Efforts to place a cannabis legalization measure on Oklahoma’s 2026 ballot have been halted after organizers withdrew their proposal before the submission deadline.

Oklahomans for Responsible Cannabis Action confirmed it did not deliver its petitions to the Secretary of State’s office in time, effectively halting the campaign. The decision marks a major setback for advocates who had been working quickly to collect signatures statewide.

The group had enlisted over 500 local businesses to help circulate petitions, including medical marijuana dispensaries, tattoo shops, and other small retailers. Despite the broad outreach, ORCA fell short of submitting the required 172,993 valid voter signatures by Monday’s cutoff.

Jed Green, founder of ORCA, said in October that volunteers had gathered a large number of signed petitions, but the process of organizing and verifying them proved difficult. Collection efforts continued into the final hours before the deadline, but the group could not finalize delivery in time. The campaign began collecting signatures in August, leaving organizers just three months to meet their goal.

Advocates also faced new political challenges. Governor Kevin Stitt signed legislation earlier this year tightening rules for citizen-led ballot measures, including marijuana reforms. The law adds stricter requirements for the short ballot summaries voters see and limits how many signatures can be collected from any single county—no more than 20.8% for constitutional measures and 11.5% for statutory proposals. That law is currently being contested in court, though not specifically because of the marijuana initiative.

Under the withdrawn initiative, adults 21 and over would have been allowed to possess up to eight ounces of marijuana, cultivate up to 12 plants, and hold one ounce of concentrates for personal use. The measure sought to protect users from discrimination in housing, employment, education, healthcare, and other areas, and it barred the use of THC residue as evidence of impairment.

Local governments would not have been allowed to ban home cultivation, and public-use restrictions could not exceed those already in place for tobacco. A 10% excise tax would have applied to recreational marijuana, with most revenue split between the state, counties, and cities.

The initiative also included provisions for interstate commerce if federal law eventually allows it.

While ORCA’s campaign has ended for now, the broader debate over cannabis policy in Oklahoma continues. Law enforcement agencies have voiced opposition to broader legalization, citing health and public safety concerns.

Meanwhile, state legislators have advanced measures related to marijuana use, including one aimed at preserving firearm rights for medical cannabis patients and another proposing penalties for using marijuana during pregnancy.

The wider marijuana reform movement will be disappointed that the efforts to seek legalization of adult-use marijuana in Oklahoma haven’t placed an initiative on the ballot. This setback closes the door to many business opportunities, such as for firms offering similar services to Innovative Industrial Properties Inc. (NYSE: IIPR), that would have resulted if broader policy reforms had succeeded in the state.

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