Emerging Markets Roundup: July 2022

As state-led legalization paves the way for the eventual, inevitable end of federal prohibition, keeping track of all the industry’s ins and outs is practically a full-time job.

But we got you!

Each month, AROYA’s emerging markets round-up is a chance to spotlight just a few of the news stories we think cultivators should know about. From tracking cultivation opportunities in new jurisdictions to monitoring existing markets for regulatory changes that impact growers, and more, we’re always on the lookout. And here are some of the stories that caught our attention recently…

• Governor Gavin Newsom (D) signed a bill that eliminates California’s cultivation tax and moves ownership of the 15% excise tax over to retailers, giving much-needed relief to cannabis farmers in the Golden State. The legislation also provides greater enforcement against unregulated operators – including civil penalties for property managers who rent or lease spaces to unlicensed producers – and earmarks a $10,000 tax credit for eligible social equity businesses. Read more at Marijuana Moment…
   
• Minnesota enacted a new law that allows adults aged 21+ to purchase edibles and beverages infused with hemp-derived cannabinoids, including those which contain a small amount of THC. While the Land of 10,000 Lakes legalized medical cannabis in 2014 and currently has no adult-use cannabis laws on the books, the new law establishes a regulatory framework for Delta-8 products and caps THC levels in hemp-derived products at 5mg (50mg per package maximum). Read more at CBSNews.com…
   
• The state Cannabis Compliance Board officially approved regulations for consumption lounges in Nevada. The new legislation, which represents the most significant expansion to the Silver State’s cannabis laws in four years, defines regulatory frameworks for each business type – including licenses for lounges attached to cannabis dispensaries, standalone lounges, and those set aside for social equity operators. As many as 65 new establishments are expected to open under the new legislation, with some expected to launch before the end of the year. Read more at The Nevada Independent…
   
• In North Carolina, hemp is permanently legal after lawmakers recently agreed to remove the plant from the state’s list of controlled substances. Although North Carolina had temporarily legalized hemp in 2015, Governor Roy Cooper’s (D) approval of Senate Bill 455 came one day before it was set to expire – ensuring the Tar Heel State’s estimated 1500 hemp producers can continue with business as usual. Read more at News & Observer...
   
• The Texas Supreme Court upheld the Lone State’s ban on smokable hemp. The decision stems from a lower court’s rejection of the original ban which was enacted in 2019 – putting any company that has been manufacturing smokable hemp products in violation of the law. Read more at MJBizDaily…
   
• A recent emergency bill allowing Washington DC adults to self-qualify for medical cannabis was passed unanimously by the D.C. Council. Residents over the age of 21 seeking a medical card can now bypass getting a doctor’s recommendation first. The change removes a potential barrier to access in a city with just over 600 registered physicians and more than 700,000 residents, and gives patients quicker access to the city’s dispensaries. Read more at DCist.com…

Got the scoop on something going on in your emerging market? Email it to mandy.spivey@metergroup.com so we can cover it!

And be sure to check back with us for news, important topics for cultivators, operators, investors, and anyone who wants to stay on the forefront of this amazing time in cannabis and crop steering history.