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🌿 DOOBIE Act advances, national hemp regulations recommended, and Weedmaps walloped by the SEC

Welcome to another edition of The Pre Roll, the cannabis newsletter that keeps you up-to-date on the industry happenings you need to know. Here’s what we’re rolling up this week: DOOBIE Act advances, national hemp regulations recommended, Weedmaps walloped by the SEC, and more. Let’s get to it.

Author

Alex Lipnik
September 27, 2024

together with

Happy Friday Pre Rollers! Welcome to another edition of The Pre Roll, the cannabis newsletter that keeps you up-to-date on the industry happenings you need to know.

Here’s what we’re rolling up this week:

  • DOOBIE Act advances

  • National hemp regulations recommended

  • Weedmaps walloped by the SEC

…and more. Let’s get to it.

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🚨 ROLL CALL
Policy

Source: Lex Villena / Reason

Easing employment. Legislation aimed at ensuring applicants for federal positions or security clearances are not being denied solely on the basis of past recreational and medical cannabis use has advanced in the Senate. The Dismantling Outdated Obstacles and Barriers to Individual Employment — or DOOBIE — Act was initially introduced and discussed July.

“The federal government must adapt its hiring practices to reflect the evolving legal and social landscape of our nation. My bill takes a crucial step by aligning federal policy with existing agency guidance, ensuring that past marijuana use alone doesn’t automatically disqualify talented individuals from public service. This approach will expand our talent pool and create a fairer, more inclusive hiring process.” 

U.S. Senator Gary Peters (D-MI)

The bill, a companion to the bipartisan Cannabis Users Restoration of Eligibility (CURE) Act in the House, would align federal law with the current guidance on past cannabis use from the Office of Personnel Management (OPM) and the Office of the Director of National Intelligence (ODNI).

Policy

Source: Gene Johnson / AP

Recommended regulations. A new bill put forward this week would establish national standards for the legal hemp market. The Cannabinoid Safety and Regulation Act (CSRA) intends to protect public health and safety and keep cannabis products out of the hands of children by requiring:

  • all purchases be made by those 21 and older

  • products be tested for safety and manufactured using clean and safe processes

  • truth in labeling

  • the Food and Drug Administration (FDA) to recall or ban any products with dangerous chemicals or additives

“Just like the tobacco industry marketing cigarettes to young people, nobody should be slapping fun cartoons and glitzy candy wrapper packaging on cannabis products meant for adults. A federal floor for regulation of hemp products is non-negotiable to ensure that consumers aren’t put at risk by untested products of unknown origin. My legislation will ensure that adult consumers know what they’re getting, and that hemp products are never sold or marketed to children.”

U.S. Senator Ron Wyden (D-OR)

The legislation is endorsed by the U.S. Hemp Roundtable, the National Cannabis Industry Association, National Industrial Hemp Council, and hemp industry associations from California, Colorado, Arizona, Michigan, Illinois, Kentucky, Missouri, South Dakota, Virginia, and Texas.

Tech

Misleading MAUs. Cannabis tech giant Weedmaps, along with former CEO Chris Beals and former CFO Arden Lee, came under fire from the the United States Securities and Exchange Commission (SEC) for misrepresenting the number of "monthly active users" or "MAU" for its online cannabis marketplace in public reporting.

WM Technology misleadingly reported substantial and continued MAU growth and emphasized the strength and expansion of its user base in its public filings and earnings calls. According to the complaint, although WM Technology's SEC filings stated that it determined its MAU by counting the total number of users that had "engaged with" the WM Technology site in a given period, in truth, a large and increasing percentage of the users of the WM Technology site were instead persons who visited a third-party site, and who were then automatically shown the WM Technology site by way of a "pop-under" advertisement. As alleged by the SEC, these purportedly "active" users did not volitionally seek out the WM Technology site, and, in most instances, did not click on any links or engage in measurable activity on the WM Technology site.

The company agreed to pay a penalty of $1.5 million. Beals and Lee were each fined $175,000.

🇺🇸 STATE OF THE INDUSTRY

California: A controversial emergency ban on hemp-derived THC products introduced by Governor Gavin Newsom was approved and became effective immediately.

Missouri: Regulators have scaled back the executive order signed by Governor Mike Parson banning intoxicating hemp products.

New York: The Office of Cannabis Management’s Chief Equity Officer Damian Fagon is set to resign following an investigation into his alleged targeted enforcement against licensees who criticized the agency.

West Virginia: Democratic gubernatorial candidate Steve Williams said he supports legalizing recreational cannabis; his Republican opponent is against it.

đź’Ľ BUSINESS

Tilray to take on THC beverages

The global cannabis consumer packaged goods and lifestyle company unveiled its new portfolio of hemp-derived premium mocktails, seltzers, and sparkling drinks in markets across the United States.

🤝 DEALS

Fine Fettle on Martha's Vineyard set for sale

One of the two dispensaries on the Island is poised for a change of ownership.

đź’» TECH

LeafLink launches third payment option

The cannabis wholesale platform announced Payment on Sell Through (PoST), a first-of-its-kind payment option for cannabis wholesale that addresses the delinquent payments problem by guaranteeing payments to brands as retailers pay for what they sell.

đź’¨ QUICK HITTERS
📚 WHAT WE’RE READING
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📽️ VIDEO OF THE WEEK
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