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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:

• New House speaker Rep. Mike Johnson opposes cannabis legalization

• Bank of America, the NRA, and Mastercard lobby on cannabis banking

• Cannabis operators and investors sue Attorney General Merrick Garland

…and more. Let’s get to it.

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🚨 Roll Call

Policy

No bud in the House. The United States House of Representatives finally has a new speaker. Rep. Mike Johnson (R-LA) takes over after Kevin McCarthy became the first-ever speaker to be ousted earlier this month in a historic vote. And it’s not positive news for the cannabis industry.

Johnson has been given an ‘F’ letter grade from NORML, a cannabis nonprofit public-interest advocacy group, indicating he “expresses significant and vocal opposition” to reforming cannabis laws.

He outright opposes cannabis legalization, even for medical purposes, and has voted against every major piece of cannabis legislation.

A full breakdown of his voting record on cannabis legislation can be found here.

Policy

Big bet on cannabis banking. As first reported by Cannabis Wire, Bank of America (BoA), the National Rifle Association (NRA), and Mastercard (MC) included the Secure and Fair Enforcement Regulation Banking Act (SAFER), an updated version of the bill previously known as the SAFE Banking Act, on their lobbying disclosures for Q3 2023.

The SAFER Banking Act passed a key vote in late September in the Senate Banking Committee, officially sending it to the Senate floor. The bill would ensure that cannabis businesses would have access to deposit accounts, insurance, and other financial services.

In July, Mastercard, one of the world’s largest payment processing companies, issued a statement telling banks to stop allowing cannabis transactions on its debit card rails. Due to federal illegality, cannabis businesses are unable to accept credit cards as most traditional businesses do. The majority operate heavily in cash, with debit cards and ACH making up the remaining share.

The lobbying from major financial players, and others, signals that cannabis banking reform may create a shift in attitude towards working with cannabis businesses.

Policy

Controlling the Controlled Substances Act. A coalition of U.S. cannabis operators and investors, represented by the law firm Boies Schiller Flexner, filed a lawsuit this week against U.S. Attorney General Merrick Garland in hopes of preventing the federal government from enforcing the Controlled Substances Act in a manner that interferes with the intrastate cultivation, manufacture, possession, and distribution of cannabis.

Plaintiffs include:

• Gyasi Sellers (CEO and Founder of Treevit)

• Canna Provisions

• Wiseacre Farm

• Verano

Foundational supporters include:

• Ascend Wellness Holdings

• TerrAscend

• Green Thumb Industries

• Eminence Capital

• Poseidon Investment Management

🇺🇸 State of the Industry

Kansas: Nearly 70% of Kansans support cannabis legalization, according to a recent survey of adult residents.

New Jersey: The New Jersey Cannabis Regulatory Commission cited municipal approvals, lack of site control, and access to finances as the main factors delaying dispensaries from opening.

New York: Assemblymember Grace Lee and Senator Brian Kavanagh announced a new initiative to notify all landlords of the potential legal and financial liability for leasing to illegal cannabis shops.

Rhode Island: Regulators are warning against a shadow market of hemp-derived products, while the state’s regulated cannabis sales reach a record high.

Vermont: Schools are beginning to have cannabis conversations with students as dispensaries open up across the state.

📊 Business

Verano commences trading on Cboe Canada

The vertically integrated, multi-state operator began trading its Class A subordinate voting shares in Canada on Cboe Canada under the same symbol “VRNO” and in the U.S. on the OTCQX under the same symbol “VRNOF.”

💻 Tech

Alpine IQ partners with 365 cannabis on 2-way loyalty integration

The data-driven marketing and analytics company collaborated with the ERP platform on an improved, advanced integration. The upgrade allows retailers to effortlessly enroll loyalty members, link rewards to promotions, and redeem them within the ERP using a single click, providing greater operational efficiency, enhanced marketing ROI, and increased revenue.

🏆 Awards & Honors

Champion of Justice Rights Restoration Award (National Association of Criminal Defense Lawyers): Last Prisoner Project (LPP), the national nonprofit dedicated to cannabis and criminal legal reform, won the award presented to individuals who – through legislative, journalistic, philanthropic, or humanitarian pursuits – have staunchly preserved or defended the constitutional rights of American citizens and have endeavored to ensure justice and due process for persons accused of crime.

🌏 Around the World

Canada: Pollara Strategic Insights, a founding, accredited member of the Canadian Research Insights Council, released the findings of its “Legal cannabis in Canada: 5 years later” survey, tracking public and user perceptions, attitudes, and behaviors.

Ireland: The first medical cannabis production facility in the country is set to open next year in a former fireworks factory outside of Belfast.

💨 Quick Hitters

• Denver's cannabis tax revenue collected crossed the half-billion mark this summer, according to data from the Denver Department of Excise & Licenses.

• Wiz Khalifa’s premier cannabis lifestyle brand, Khalifa Kush, teams up with iconic clothing brand Camp High.

• The Grateful Dead joins forces with Grenco Science, leaders in cannabis vaporization technology, to launch a band-branded G Pen.

• RX Green Technologies appoints Gary Santo, formerly of TILT, as CEO.

• Green Thumb Industries’ incredibles brand launches Fast-Acting Pineapple Express Gummies.

📚 What We’re Reading

• Where Are All the Legal Weed Shops? (New York Magazine)

• Extremely rare pot discovered 50 years ago is finally available in California (SFGATE)

• Cannabis is big business for Michigan law firms, and a new generation of attorney is rising fast (Crain’s Detroit Business)

• Chronic Payments: Unraveling the Complexities of Cannabis Banking (Payments Pros Podcast)

📼 Video of the Week

Jimmy Kimmel presents Snoop Dogg with the surprise of a lifetime in celebration of his birthday being on 10/20 which is exactly six months from 4/20.

🗓 Upcoming Events

November 2-3: The National Indigenous Cannabis Policy Summit will take place at the Eaton Hotel in Washington, D.C.

🔎 Job Board

• Senior Analyst, Cost Accounting

  • Cresco Labs

  • $80,000—$90,000

• Marketing Project Manager

  • The Cannabist Company (formerly Columbia Care)

• Product Manager, eCommerce

  • Green Thumb Industries (GTI)

Stay tuned for more cannabis industry news next week!

💚,

The Pre Roll Team

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