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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:

• Minnesota is on the verge of becoming the 23rd state to legalize recreational cannabis

• States that have legalized adult-use cannabis are benefiting from hundreds of millions in tax revenue each year

• Federal agencies are relaxing rules regarding cannabis use

…and more. Let’s get to it.

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🚨 Roll Call

Policy

The Gopher State likely to go for cannabis. Minnesota appears to be on the cusp of becoming the 23rd state to legalize recreational cannabis — despite some rather interesting arguments in opposition from state Republicans.

On April 25, the Minnesota House passed its adult-use bill. The Minnesota Senate followed suit with a bill of its own on April 28. The two chambers of the Minnesota Legislature now must work together to reconcile the differences between the two versions. Both the House and Senate have appointed bipartisan committees on the matter.

Governor Tim Walz has indicated he plans to sign the final bill once it has been agreed upon.

Policy

Taking home tons of taxes. An analysis by the Marijuana Policy Project (MPP), the nation’s leading cannabis policy reform organization, found that states have reported more than $15 billion in combined tax revenue from legal, adult-use cannabis sales through the end of 2022. This includes over $3.75 billion in 2022 alone.

These huge sums of tax revenue generated have helped with statewide budgets. The benefits have trickled down cities, towns, and local governments as well.

Policy

U.S. government relaxes rules. In a bid to attract younger workers, the federal government is relaxing drug screening rules, says The New York Times. Among the agencies mentioned were the United States military, the C.I.A., and the F.B.I., among others. The Biden administration is also expected to scale back its investigations into the drug histories of those applying for security clearance.

This is quite significant news, as the federal government is the nation’s largest employer.

🇺🇸 State of the Industry

Florida: A cannabis legalization initiative has over 94% of the necessary signatures to appear on the ballot in 2024; it was just above 71% a month ago.

Maryland: Governor Wes Moore created a blind trust to avoid potential conflicts of interest while in office. The largest share of assets — more than 46% of the total — came from nearly $1.2 million in multi-state cannabis operator Green Thumb Industries stock.

New York: Governor Kathy Hochul signed legislation aimed at unlicensed businesses, with increased fines up to $20,000 per day.

Oregon: Secretary of State Shemia Fagan resigned amid a scandal surrounding her cannabis consulting side gig.

Wisconsin: Republican lawmakers voted Tuesday to kill proposals to legalize cannabis.

📊 Business

Advanced Vapor Devices: The vertically integrated manufacturer and distributor of cannabis vaporizer technology had the U.S. International Trade Commission rule definitively in its favor in a year-long patent infringement investigation initiated by Chinese e-cigarette maker Shenzhen Smoore Technology Limited, which owns CCELL.

Green Thumb Industries: The national cannabis consumer packaged goods company and retailer detailed its financial results for Q1 2023, with both year-over-year revenue and same-store sales up.

INCA Renewable Technologies: The Canadian manufacturer of natural fiber composites announced its $40 million Series B. Funding will be used to commercialize a line of hemp-based, advanced bio-composites.

🏆 Awards & Honors

The Americas’ Fastest-Growing Companies 2023 (Financial Times): Eleven cannabis companies made the fourth annual list which includes the 500 companies in the Americas that had the highest growth in publicly disclosed revenues between 2018 and 2021.

💨 Quick Hitters

• President Joe Biden commuted the sentences of 31 nonviolent drug offenders.

• Officials in Oregon are calling for eased cannabis regulations to prepare for eventual nationwide legalization.

• A legal battle has broken out over a planned dispensary across from the legendary Apollo Theater in the Harlem.

• Fewer people in the United States are saying “never” to cannabis according to a survey of adult cannabis consumers from data and analytics firm New Frontier Data.

• The first social equity cannabis manufacturer in Chicago opened.

📚 What We’re Reading

• Opinion | Americans are ready for legal marijuana (The Washington Post)

• How New York and California Botched Marijuana Legalization (The Wall Street Journal)

• Exploitation, Abuse, and Death: The Dark Side of Working in the Weed Industry (The Nation)

• ‘Shark-like’ investors emerge as NY officials court out-of-state money for cannabis startups (Gothamist)

• Beyond Payments for High-Risk Industries (Andreessen Horowitz)

📼 Video of the Week

🗓 Upcoming Events

June 21-23: Cannabis Marketing Association is hosting “Cannabis Marketing Summit” at the Hilton City Center in Denver, Colorado.

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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