420 with CNW — Cannabis Operators Applaud End of Potency Tax in New York State

New York governor Kathy Hochul has successfully changed the state’s cannabis tax structure. Starting June 1, 2024, a new flat excise tax replaces the previous potency tax, marking the beginning of the new financial year.

This move is part of New York’s $237 billion budget for FY 2025 and is receiving positive feedback from many in the cannabis industry, especially smaller retailers, processors and social-equity beneficiaries.

With the tax reform, retail marijuana prices are expected to decrease, a significant development as licensed cannabis entities strive to compete with the numerous illegal shops, particularly in New York City. Governor Hochul had criticized the initial rollout of the recreational marijuana market as problematic. Earlier this year, she proposed eliminating the potency tax and implementing a flat 9% excise tax instead.

Previously, the state’s 2021 cannabis act — MRTA — required cannabis operators to pay taxes based on THC content at 0.5 cents, 0.8 cents, and three cents per milligram of flower, concentrates and edibles, respectively.

This sometimes resulted in a 25%–30% tax on typical market prices, according to Naturae cofounder and CEO, Nicolas Guarino. Some products, including tinctures, saw price increases of up to $60 per unit due to these taxes. With the new tax structure, Naturae aims to reduce prices on about 30% of its products, offering discounts between 15% and 35%.

Silly Nice, an NYC-based brand run by Black and veteran entrepreneurs, had to pay around $20,000 in THC taxes during the first quarter of the year, which had a big impact on the company’s profit margins. Cofounder LeVar Thomas is happy about the tax shift, pointing out that it will enable the company to increase the range of products it offers at more inexpensive prices.

Happy Munkey, led by cofounder and CEO Vladimir Bautista, is set to open its first store in Manhattan’s Washington Heights. Bautista believes the new tax will make legal marijuana more affordable and reduce the appeal of the illegal market.

The new rule, however, has little financial effect on larger, vertically integrated company’s such as Chicago-based PharmaCann. These multistate operators, known as registered organizations (ROs), were once in the medical sector and are subject to both retail and wholesale taxes. The economic impact on ROs is neutral, according to Jeremy Unruh, PharmaCann’s spokesperson, and it is still unclear what the true benefits will be for consumers.

PharmaCann was among six ROs permitted to enter the recreational market in December, one year after sales began. The policy change eliminated the three-year waiting time for ROs, nullifying the initial first-mover advantage granted to smaller suppliers and social-equity shops.

Despite the broad support for eliminating the potency tax, the new flat 9% excise tax is causing challenges because of unpaid invoices. Payment delays are a significant issue in the marijuana industry, contributing to the downfall of businesses such as Herbl and MedMen Enterprises.

New York cannabis operators have only 20 more days to collect payments from the previous quarter, a tough task given the financial strains in the industry. Many operators are currently on tax-payment plans with the state.

Guarino noted that while there is a mechanism for collections, the average collection time is about 45 days, even with 30-day net terms, complicating timely tax payments.

The situation in New York State is likely to be studied closely by other cannabis regulators, and this could result in similar reforms within other jurisdictions where companies such as Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) have operations.

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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 — Study Says Cannabis Terpenes Equal to Morphine in Pain Management

A new study exploring the potential of marijuana terpenes as treatments for chronic neuropathic pain suggests that these compounds could be as effective as morphine for pain relief, showing similar reductions in pain markers when administered via injection. Interestingly, when terpenes were combined with morphine, they enhanced the drug’s effectiveness as well.

The study found that, unlike morphine, none of the terpenes triggered a significant reward response, implying that they might be effective pain relievers without the risk of addiction or dysphoria. However, vaporized or orally administered terpenes did not show much impact on pain relief.

The authors highlighted that while major marijuana components, such as CBD and THC, have shown moderate effectiveness in managing severe pain, THC often has undesirable psychoactive effects. This limitation has led to a focus on other potential therapeutic compounds in marijuana, including terpenes, flavonoids and minor cannabinoids.

Terpenes, naturally occurring in many plants, such as rosemary, pine trees and oranges, are particularly abundant in marijuana, which contains about 150 different terpenes. The study suggests that this chemical diversity might contribute to the varied effects of various marijuana strains.

The research specifically investigated five terpenes: linalool, alpha-humulene, geraniol, beta-caryophyllene and beta-pinene, found in significant quantities in marijuana. The terpenes were tested on mice to evaluate their effects on inflammatory and peripheral neuropathic pain. The substances were injected into the mice’s hind paws and induced by chemotherapy medications, respectively. The terpenes were also administered orally and through vaporization.

Tests were conducted on a per-terpene basis, with 200 mg/kg of terpenes and 10 mg/kg of morphine being used for comparison. The study aimed to not only assess pain relief but also understand the mechanisms behind it. This included behavioral observations and cellular analyses, such as mRNA evaluation from flash-frozen mouse skin.

Results showed that all tested terpenes reduced neuropathic pain markers, except pinene, which did not significantly affect inflammatory pain.

Combining lower doses of terpenes with morphine appeared to enhance pain relief, indicating a potential for combination therapies that might offer better pain management while reducing the risk of opioid addiction. Regarding the potential for addiction, the study found that linalool and geraniol did not produce either an aversion or a preference in mice, suggesting they do not cause dysphoria or reward. Conversely, beta-caryophyllene and alpha-humulene showed a substantial aversive response, indicating they might be dysphoric, while beta-pinene had possible aversive side effects.

The method of administering terpenes mattered significantly. Injected terpenes were effective in reducing pain markers, whereas oral and vaporized terpenes had limited impact and sometimes caused side effects such as hypothermia. This indicates that terpenes might have restricted bioavailability when taken orally or inhaled, which could explain why some people might not experience their pain-relieving effects through these methods.

The study also explored the mechanisms behind terpene-induced pain relief, suggesting that terpenes might act as anti-inflammatory agents and interact with specific nervous system receptors. The research indicated that terpenes could act as A2AR agonists, potentially interacting with receptors in a complex manner that requires further investigation.

Overall, while the findings are promising, the authors emphasized the need for more research to fully understand how these results translate to human pain management.

This study, in a way, provides validation for companies such as Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) that have heavily invested in developing medical cannabis products to help patients manage their symptoms.

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420 with CNW — Biden Welcomes Marijuana Reclassification, Slams ‘Failed Approach’

The U.S. Department of Justice (DOJ) has moved to reschedule marijuana as a less-hazardous narcotic, marking the most substantial drug-policy reform in the nation in more than half a century. President Joseph Biden celebrated the move as a crucial step toward correcting historical injustices.

This marks a notable shift for President Biden, who, 30 years ago, was instrumental in crafting stringent crime legislation that is now a source of political contention. This change could bolster Biden’s appeal among younger voters, a demographic crucial for his re-election campaign.

The new proposal, announced on May 16, 2024, stops short of fully legalizing recreational cannabis, which is currently legal in 24 states and DC. Additionally, 38 states have legalized cannabis for medical use.

“Too many lives have been disrupted by our failed marijuana policies,” Biden stated on X. “I’m dedicated to rectifying these historical wrongs,” he added.

The proposal would reclassify cannabis from the restrictive Schedule I of the Controlled Substances Act (CSA) to Schedule III. This change would mean that the federal administration no longer categorizes cannabis with highly dangerous and addictive drugs such as LSD, ecstasy and heroin.

Substances listed under Schedule III are considered to have a lower-to-moderate potential for abuse. Examples of such drugs include testosterone, anabolic steroids and ketamine.

Cannabis has remained classified as a Schedule I substance ever since Congress approved the CSA in 1970. Reclassifying it could significantly benefit the legal marijuana sector by improving access to conventional banking services and attracting external investments.

The policy change could also be a major help to Biden’s attempts to mobilize support from minority and young voters, especially amid widespread discontent over issues such as the conflict in Gaza.

Biden wrote the 1994 crime legislation while he was a senator, which is sometimes faulted for mass incarceration for drug charges, especially involving Blacks. In his 2020 presidential campaign, Biden committed to decriminalizing cannabis use, arguing that no one ought to be imprisoned for small amounts’ possession or usage.

However, he has not supported complete legalization. Instead, his administration has issued mass pardons twice for individuals with federal convictions for marijuana possession.

Referencing his prior actions, Biden reaffirmed on X that no one should be jailed just for possessing or using cannabis. He said, “At the moment, cannabis is ranked higher than methamphetamine and fentanyl, the two drugs fueling the U.S.’s overdose crisis. That disparity is incomprehensible.”

The recent proposal being a detailed approval process, starting with a 60-day public comment period before the change can be enacted.

Any step taken to ease the strict marijuana laws at the federal level is likely to be welcomed by the entire industry, such as Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), as it would be chipping away at decades of prohibition.

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420 with CNW — German Marijuana Imports Reached Record Levels in 2023

Germany saw a significant surge in its marijuana imports for scientific and medical purposes last year, reaching a record high, indicating a growing interest from international businesses eyeing opportunities in Europe’s largest federally regulated medical cannabis market. According to the latest data from the Federal Institute for Drugs & Medical Devices (BfArM), the country imported 36.4 tons (31,398 kilograms) of marijuana products last year. This marks a notable increase of 26.2% compared to the previous year’s import volume of 24,876 kilograms.

The trend of increasing imports has been consistent through the years. In 2022, the country saw imports of 27.4 tons (24,876 kilograms) of marijuana, reflecting a 19.8% increase from the previous year. The year 2021 saw imports of 22.9 tons (20,771 kilograms), representing a significant surge of 77% over the previous year.

In 2020, imports totaled 12.8 tons (11,746 kilograms), indicating a 46% increase from 2019, while in 2019, Germany imported 8.9 tons (8,057 kilograms) of marijuana, which was an 80% increase from the previous year’s imports. While some of these imports are re-exported to other European Union countries annually, experts suggest that the data underscores the rapid growth of the industry.

Only three businesses were authorized to grow medical cannabis in 2019; these companies were given strict output targets that would last for four years. Due to this restriction, cannabis had to be imported from overseas to meet demand. However, changes in marijuana law have the potential to reduce its dependence on imports in the future. The new law eliminates the quota system, allowing companies to apply for permits to grow medical cannabis through the agency.

Furthermore, the recent revision of the marijuana law, effective April 1, 2024, has reclassified the substance, removing it from the list of narcotics. This regulatory change simplifies the process for patients seeking medical marijuana because they will no longer be required to have a narcotic prescription form. Standard prescriptions will now suffice, likely stimulating demand in the market.

Despite the optimism for increased domestic cultivation, Germany is expected to continue relying on significant imports in the foreseeable future. German-based Demecan’s managing director, Von der Groeben, pointed out Article 21 of the UN Single Convention on Narcotic Drugs, which suggests that domestic demand must be met before imports can be halted. However, he acknowledges that achieving self-sufficiency in marijuana production may take several years.

Canada remained the primary supplier of marijuana to the German market last year, accounting for approximately 50% of imports. Portugal came in second, while the Netherlands was the third-largest supplier.

The further easing of marijuana laws in Germany could create additional opportunities that major players in the North American cannabis landscape, such as Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), may look to exploit as they expand their footprint in different legal markets.

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420 with CNW — With More MSOs Joining Recreational Marijuana Campaign in Florida, Funding Now Exceeds $55 Million

Florida is witnessing a surge in momentum as it gears up for what is anticipated to be the costliest recreational cannabis legalization campaign in American history. Led by Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), based in Tallahassee, the campaign is attracting support from six other multistate cannabis operators (MOS), marking a significant expansion in the effort to transition Florida’s thriving $2 billion medical cannabis market, currently the largest in the nation, into one that caters to recreational use too.

The latest supporters joining forces with Trulieve include prominent players in the cannabis industry such as Ayr Wellness, Cresco Labs, Curaleaf Holdings, Green Thumb Industries, Insa and Verano Holdings.

The committee behind the initiative — Smart and Safe Florida — announced a substantial boost to its funding, with an additional $15 million raised. With the new support, the campaign currently has a total of approximately $55 million in funding. Trulieve alone had already raised and spent more than $40 million by the end of last year.

For perspective, backers of Ohio’s initiative, Issue 2, spent less than $7 million, while California’s Proposition 64, a victorious recreational use legislation, saw expenditures reach $25 million in 2016.

The recent endorsement from major marijuana businesses comes on the heels of a significant legal victory at the state’s Supreme Court, where a constitutional challenge mounted by Ashley Moody, the state attorney general, was dismissed. The decision paves the way for the initiative to proceed, providing a boost to the campaign’s momentum.

Should the initiative, called Amendment 3, be adopted by 60% of state voters in the November elections, it would permit currently operating medical cannabis treatment centers to begin selling recreational marijuana by May 2025. Additionally, it seeks to allow adults 21 years of age and older to possess up to three ounces while maintaining the prohibition on home cultivation, consistent with existing state laws.

However, the measure does not include a social equity scheme, and the state legislature would still need to take action to expand licenses beyond the current operators. Presently, the state hosts 627 dispensaries operated by 25 firms, with regulators indicating the possibility of issuing permits to 22 more by summer, albeit at a notably high license renewal fee of $1.33 million.

Florida’s market potential is enormous given its 22 million citizens, 859,000-plus registered medical marijuana patients and millions of tourists each year. Estimates suggest that the state’s $2 billion in yearly medical cannabis sales might double.

Even though a recent poll shows significant voter support for recreational cannabis (62%), it is expected that more funding would be needed to organize a successful statewide campaign. On top of Trulieve’s $40 million investment, estimates indicate that total campaign expenses including media buys and operational costs may total between $20 million and $25 million.

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420 with CNW — California Bill Seeks to Curtail Cannabis Employment Protections for Safety-Sensitive Jobs

A recent bill in California that was originally intended to amend the state’s current rules protecting workers from discrimination based on their use of legal cannabis has undergone substantial changes to rescind the protections for several workers, including those in animal control, law enforcement and coroners’ offices.

The initial measures passed in 2022 and 2023 limited the use of punitive measures against workers for marijuana use while they were off duty and prohibited companies from asking applicants about their prior cannabis usage. However, SB 1264, under Senator Shannon Grove’s sponsorship, seeks to carve out exceptions for certain job roles. These exceptions primarily impact positions involved in law enforcement, civil enforcement, public safety communications, evidence management, animal control, community services and coroner functions.

These changes come shortly after the Peace Officer Standards and Training Commission eliminated questions about cannabis from police recruitment applications.

Grove’s proposed changes were approved recently, and the bill awaits further review by the state’s Senate Rules Committee.

The existing employment protection laws, effective at the start of this year, prohibit employers from soliciting information regarding an applicant’s past marijuana use, barring specific exceptions. Similarly, employers are prohibited from discriminating against employees based on lawful off-duty cannabis consumption or positive drug tests for cannabinoid metabolites.

While these laws already feature exceptions for certain occupations, such as those in construction trades and positions requiring federal background checks, the recent amendment seeks to extend these exceptions to encompass a range of law-enforcement roles.

The discourse surrounding marijuana-related employment regulations has gained momentum nationwide alongside the legalization movement. In Ohio, for instance, Cleveland mayor Justin M. Bibb announced updates to the city’s drug-testing guidelines for job applicants, eliminating outdated language regarding pre-employment cannabis testing.

Similarly, Washington, D.C., implemented a law in July preventing private workplaces from penalizing employees for off-duty cannabis use. Michigan officials also recently revised the state’s employment regulations to exempt most government job applicants from pre-employment cannabis testing.

Meanwhile, California Governor Gavin Newsom has promised to keep advancing efforts to stabilize the cannabis industry in the state. He proposed in January that the government borrow $100 million from a marijuana tax fund intended for public safety and law enforcement to help cover a fiscal shortfall overall. The state’s legislature is reviewing various drug policy amendments that address issues like psychedelics as well as possibilities to expand the state’s marijuana market.

California has been a trendsetter on many matters, such as cannabis legalization. Established marijuana entities such as Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) may therefore watch the developments in the Sunshine state to see if what is happening there triggers similar changes in other state-legal marijuana markets.

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420 with CNW — VP’s Comments on Marijuana Suggest Campaign Shift on Legalization

Vice President Kamala Harris, speaking at the White House to a group of individuals who received pardons related to marijuana offenses, expressed her support for the legalization of cannabis, marking a potential change in the administration’s stance as the November elections approach. An attendee at the meeting disclosed Harris’s statement, which came after her public call for the DEA to expedite the rescheduling of marijuana.

Harris, who had previously advocated for cannabis legalization as a senator and during her 2020 presidential campaign, has not publicly championed the cause since joining President Joe Biden’s ticket. Throughout the campaign and her tenure as vice president, she has aligned herself with President Biden’s more moderate approach, focusing on ending cannabis-related incarceration and providing pardons for select offenses.

The White House hosted a diverse group for the discussion, including Governor Andy Beshear of Kentucky, rapper Fat Joe, and others, reflecting the administration’s efforts on marijuana clemency. Harris’s call for cannabis legalization, while made in private, marks a significant departure from the administration’s previous reluctance to embrace federal marijuana reform openly.

Despite the administration’s reluctance to endorse federal legalization, Biden has pardoned numerous individuals for federal marijuana possession and directed agencies to review marijuana scheduling.

In the public portion of the meeting, Harris emphasized the urgency of rescheduling cannabis, criticizing its current classification alongside drugs such as heroin. However, Harris acknowledged that rescheduling alone wouldn’t equate to federal legalization. She recognized the complexity of the issue and the need for further action beyond mere reclassification.

Although the White House recorded the closed-door discussion, including Harris’s remarks on legalization, no materials have been released yet.

Harris’s evolution on marijuana policy — from her prosecutorial days in San Francisco to her current support for legalization — reflects a nuanced journey. While the primary focus of the meeting was on the administration’s clemency initiatives, it also served as a strategic move to win over voters, particularly young voters, in light of the upcoming November elections.

Social media was recently abuzz with commentary about Biden’s congressional speech, in which he acknowledged his cannabis pardons and administrative actions. However, his mischaracterization of the pardons, implying they expunge records, could pose legal challenges for recipients.

Nonetheless, it seems Harris is taking on the role of spokesperson for the administration’s cannabis policy leading up to the elections, potentially benefiting both her and Biden’s campaigns.

Leading cannabis industry companies such as Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) are unlikely to be too excited by the statements attributed to the vice president because the industry has learned that it takes a lot more than opinions to enact reforms at the federal level, especially on matters of drug policy.

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420 with CNW — 2023 Marijuana Business Licenses Declined in US, Data Firm Says

The number of active cannabis company licenses in the United States saw a substantial dip in 2023, the first decline following years of steady increase, according to a recent CRB Monitor report. According to the data, there was a 4% drop in the number of active marijuana licenses in the U.S. between 2022 and 2023. On the other hand, Canada saw a 2% growth in the quantity of active marijuana business permits over the same period.

CRB Monitor is a company based in Nashville, Tennessee, specializing in marijuana intelligence and license monitoring.

Since 2019, the combined total of active licenses in both countries had been doubling annually, but signs of a slowdown emerged in 2022 when the growth rate decreased to 28%. The overall number of active licenses reached a high of 51,000 at the start of 2023, but by the end of the year, it had decreased to about 49,200, a 2% decline from the year before.

In the United States, the peak number of active licenses reached approximately 44,300 in 2022. Despite a robust influx of new licenses in 2023, nearly 1,900 licenses were lost or abandoned by the year’s end. However, there was a notable increase in approved licenses, indicating newly licensed marijuana businesses yet to commence operations. This category saw a significant surge of 23% in 2023, with the most growth occurring from January to September.

Despite this increase, the new licenses couldn’t offset the losses experienced in established markets, where operators faced financial challenges. The decline in active licenses was particularly evident in established markets such as California, where license numbers dropped by 19% in 2023. Other established markets experiencing a reduction in active licenses included Washington State, Colorado, Nevada and Illinois.

On the other hand, the largest increase in domestic marijuana business permits was observed in newly established and developing state markets in 2023, with several states issuing hundreds of new business licenses. New Mexico topped the country with more than 600 newly issued active permits. Michigan followed with 550 active permits, New York added about 360 and Vermont issued 239 new permits.

In Canada, there were 6,860 active marijuana licenses at the end of 2023, up 2% from the previous year despite a few store closures. Furthermore, recreational marijuana sales in Canada increased by 12% in 2023 to reach CA$5 billion ($3.8 billion). However, the number of pending licenses awaiting approval decreased by 13% in 2023 and by 45% since 2022.

The cannabis industry in both the United States and Canada faces major challenges, and the continuing success of licensed businesses such as Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) is testament to the overall resilience of the industry and the undeniable strong demand for the cannabis products.

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420 with CNW — Navy Expands Cannabis Waiver as Recruitment Nosedives

The Navy is changing its policy for recruits who test positive for cannabis upon arriving at boot camp, choosing to grant waivers rather than dismiss them outright in light of the continuous difficulties the United States military faces in recruiting. Head of the Navy’s personnel policy and plans unit, Rear Admiral James Waters, explained that if a recruit tests positive for cannabis and admits to using it, an assessment is done to make sure there are no underlying problems.

The adaptation aims to align with social laws and provide an opportunity for young people to acclimate to the Navy’s culture during boot camp. This move is a reflection of larger military attempts to solve recruitment deficiencies and lower the boot-camp dropout rate, which is currently approximately 10%, marking one of the lowest in past years.

Waters stressed that with the Navy’s target of recruiting 40,000 sailors by the end of 2024, minimizing the loss of recruits during boot camp is crucial. However, he emphasized that the more permissive attitude is limited to THC testing and doesn’t extend to other substances.

The adjustment follows a similar move by the Air Force, which saw a significant increase in enlistment waivers granted to recruits testing positive for THC than initially anticipated. General Christopher Amrhein, the Air Force’s recruitment service commander, highlighted that the waiver policy helped mitigate the impact of missing the annual recruitment goal for the first time in more than two decades.

The unit reported that it had granted 165 waivers in the first year after they were made available. That is more than three times as many waivers as it had anticipated granting each year.

The Navy and the Air Force’s recent policies represent a departure from previous strict regulations related to marijuana use, particularly in the context of CBD and hemp products. Over the years, various military units have communicated specific rules to their members regarding marijuana use, emphasizing the prohibition of hemp, CBD and marijuana products, even in states where using those substances is legal.

The Navy, for instance, prohibited the use of CBD and hemp products in 2018, with subsequent updates explaining the rationale behind the rule change. Additionally, the Naval War College issued a notice in 2022 stating that marines and sailors could test positive for cannabis if they consumed Pepsi’s Rockstar drink, which contains hemp.

Meanwhile, an Air Force base in Massachusetts issued a warning in 2021 prohibiting military personnel from even bringing hemp-infused lip balms, shampoos and lotions onto the base.

Given the rate at which more people are taking to regulated products from licensed marijuana companies such as Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF), the cannabis waivers offered by the different wings of the armed forces are a rightful response to the changing public perception of this substance.

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420 with CNW — Officials Say Marijuana Dispute Possibly Linked to Six Fatalities in California

Officials believe the recent California desert killings may have resulted from a dispute over cannabis. After responding to a wellness check request outside the El Mirage community, San Bernardino County Sheriff’s deputies recently discovered the bodies of six individuals at a remote dirt crossroad in the Mojave Desert.

Deputies found the victims in and near two vehicles at a remote intersection after one of the victims called the police and said that he had been shot but didn’t know his location. After tracking the victim’s phone’s location, deputies discovered five bodies in a Chevy Trailblazer and a Dodge Caravan as well as a sixth body some distance away.

Sheriff Shannon Dicus has now revealed that law enforcement officers arrested five suspects in San Bernardino County. According to Sgt. Michael Warrick, the incident “appears to be a dispute over marijuana,” although the scale and reason for the cannabis dispute is still unknown.

California voters legalized recreational cannabis in 2016 via Proposition 64, a ballot initiative that allowed adults 21 years of age and older to possess and consume up to an ounce of recreational cannabis, as well as grow up to six plants at home for personal consumption.

The measure was endorsed by many public figures, including Lt. Governor Gavin Newsom and former Los Angeles Mayor Antonio Villaraigosa; the legislation also was thought to cripple the illegal cannabis trade in California.

However, Sheriff Shannon Dicus says the San Bernardino County desert and other places have been under siege by illegal cannabis growers after the measure’s passage. The sheriff says his office executed 411 illegal grow-related search warrants in 2023 and seized 655,000 cannabis plants, 74,000 pounds of processed cannabis and approximately $370 million. Officers executed 11 of these search warrants in the area immediately adjacent to where the murders took place.

The El Mirage incident is the latest act of violence tied to the cannabis black market in remote areas of California where the cannabis black market is flourishing. Law enforcement is becoming increasingly concerned with the rising death toll and general violence involved in these incidents, especially as illegal cannabis spreads across inland desert communities in Southern California.

The California desert region is now home to multitudes of illegal cannabis farms and has seen a marked increase in violent crime, say residents and law enforcement. Sheriff Shannon Dicus observes that the cannabis black market has become a plague in the San Bernardino County region and notes that cartel activity is certainly involved.

This tragedy highlights the safety risks that the black market poses in the jurisdictions where cannabis is legal. Actors such as Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) are working to avail safe marijuana products to users in lieu of untested products from illicit sources.

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