Fields of Gray
1. Strib op-ed highlights industry voice
→ The Star Tribune published an excellent opinion piece this week authored by Mathew Little of Waseca who is COO of Midwest Extraction Services and Midwest Farms (not to be confused with former state senator Matt Little who is also a champion for legalization and is currently running for Dakota County Attorney). Little shares his support for Minnesota's new cannabis laws that will take effect on July 1 as an important step toward ensuring a safe, responsible, reliable industry. From the op-ed:
“Without clear rules or direction, we have been in fields of gray. Our vision has always been about educating the public on the benefits of cannabis products. Generating support has been challenging, with no baseline rules to help guide the successful development of an emerging industry.
Plenty of dishonest people and unregulated products have hit the shelves, adding to the confusion about what hemp and its cannabinoids are and do. HF 3595, passed by the Legislature and signed by Walz, shows us a path for responsible production and lawful distribution, which until now has been hindered by the absence of established distribution channels and a clear path to market.
We have seen store shelves flooded with black market products that ignore the rules. These products are detrimental to our state's economy; the jobs that Minnesota farmers and manufacturers created; and hindered the future, reputation and progression toward legalization of the industry.”
2. Prelude to July 1
→ CBS News covered the upcoming change to Minnesota's cannabis laws, including insights from cannabis attorney Carol Moss. From the article:
“According to Moss, the law should not be seen by critics as a prelude to full legalization of marijuana. 'Before this law was passed, these products were consumed and sold in Minnesota already and many from out of state businesses. This will now provide guidance from Board of Pharmacy to enforce these consumer protections. A lot of these products could be marketed towards children. Without regulations, and enforcement, there's nothing from keeping these products from them.'”
→ Twin Cities Business Magazine published detailed coverage of the law change, including quotes from Mathew Little of Midwest Extraction Services and Midwest Farms and Jason Tarasek of Minnesota Cannabis Law. In the article, Tarasek says:
“The vape industry wanted this to go a lot further than it did and, for whatever reason, the legislators seem more comfortable with gummies than vapes and I can't explain why.” A few paragraphs later, Little explains why: “'I think the smoke shops and head shops will feel a little pain from these regulations. We're more on the side of the health and benefits of hemp and cannabis,' he said, noting his company shied away from vape products after vitamin E acetate in vaping products was linked to lung injury and even possible deaths in 2020.”
3. SCOTUS denies MN medical cannabis workers comp case
→ The U.S. Supreme Court has denied certiorari in two workers compensation cases arising from Minnesota's medical cannabis program.
As explained by Marijuana Moment:
“These particular cases could have had wide-ranging implications related to federal supremacy. Two Minnesota residents raised their separate challenges seeking workers compensation for medical cannabis expenses after being hurt while working on the job.
In both instances, the state Supreme Court ruled that federal law prohibiting marijuana preempted state law, meaning the employers were not obligated to pay for the medicine.
But the plaintiffs and advocacy groups like Empire State NORML made the case that, because employers aren't required to possess, manufacture or distribute cannabis in contravention of federal law, simply providing workers compensation for marijuana is not preempted by the Controlled Substances Act (CSA).”The National Law Review offered the following analysis:
“This Supreme Court's decision to remain on the sidelines of the debate over marijuana legalization is disappointing to many who were hoping to see the high court help to break the logjam in Congress. The decision also leaves in place the clear conflict over workers' compensation reimbursement of medical cannabis in state court decisions and facilitates the potential for further conflict as this issue continues to percolate throughout the country. Because each of the decisions have relied on different justifications to either deny reimbursement as preempted by the CSA or authorize reimbursement, unless a state has a clear controlling law on the reimbursement of marijuana in the context of workers' compensation, it may be difficult for parties and practitioners to predict how a state may address this issue.”
4. This week’s must-read: Speaking of workers…
→ On Labor published an article this week on labor rights and equity in the legal cannabis industry. Per the article:
“The legal cannabis industry is currently one of the fastest-growing employers in the U.S. Since 2017, the number of Americans working with cannabis has grown each year by at least 27%. In just the last year alone, the industry grew by 33% and now employs up to 428,000 American workers. Part of the reason for this explosive growth is that many of those who left their jobs in retail and restaurants during the “Great Resignation” are flocking to dispensaries for better benefits and opportunities. Unfortunately, the improved working conditions within the cannabis industry are disproportionately unavailable to Black and brown communities. But state legislators are crafting inventive ways to address this racial inequity.”
The article highlights the cannabis worker protections advanced in Minnesota and other states by the United Food and Commercial Workers (UFCW).
This article is this week's must-read.
5. Big green for Green Thumb
→ The Motley Fool published an article on how Green Thumb Industries' significant capital investments in 2021 may pay off in 2023 as cannabis becomes increasingly more available in existing and new markets.