บทถอดความฉบับเต็มของ TWICL (10/16/26) - Midterms, Regulators on the Hot Seat, & NY’s Massive LPA Repeal | This Week in Cannabis Live

I live in Brooklyn, so you know, I've already voted in the primaries. 00:02:29.759 --> 00:02:31.520 My vote doesn't count very much right now. 00:02:31.599 --> 00:02:34.159 Um, but uh I'm really watching Massachusetts closely. 00:02:34.560 --> 00:02:35.680 Your vote counts more than me. 00:02:35.759 --> 00:02:41.360 I I am actually a uh San Francisco voter because when you wherever you register to vote, that's where you vote forever. 00:02:41.439 --> 00:02:45.199 If you become a well, in my case, a uh Democrat abroad type of thing. 00:02:45.280 --> 00:02:47.919 Uh, but I vote in uh Noe Valley in San Francisco. 00:02:48.000 --> 00:02:51.520 If you think your vote doesn't count in in um in Brooklyn, yeah. 00:02:51.840 --> 00:02:52.080 Yeah. 00:02:52.240 --> 00:02:58.560 I I would say it's it's you know, in my district, it's it's you know, do I vote for the center left Jew or the far left Jew? 00:02:58.639 --> 00:03:01.199 And that's uh, you know, that's the decision I'm trying to make right now. 00:03:01.280 --> 00:03:02.960 So have fun with that. 00:03:03.120 --> 00:03:04.240 Uh have fun with that. 00:03:04.319 --> 00:03:05.199 Mark, what's on your mind? 00:03:05.520 --> 00:03:08.240 Yeah, let's not clip that one sentence. 00:03:12.639 --> 00:03:13.520 What about you, Mark? 00:03:13.599 --> 00:03:14.560 What are you thinking about? 00:03:15.599 --> 00:03:21.039 Yeah, I I mean, I I I I I agree with every, you know, I don't know if there's much to add. 00:03:21.199 --> 00:03:25.919 I mean, it's you know, cannabis is rarely on the ballot except when it's direct. 00:03:26.159 --> 00:03:35.199 Um, to me, you know, I it's it's definitely one of those things where I've always heard, you know, folks in the industry say, oh, you know, it matters, it doesn't matter. 00:03:35.439 --> 00:03:44.080 You know, it's like the it's like the 80th problem, like on the list of things that people care, like the in the the the sort of random voter cares about. 00:03:44.479 --> 00:03:49.599 Um but yeah, but I mean certainly in Massachusetts, you know, that that's where the focus is. 00:03:49.680 --> 00:03:55.039 It was definitely a lot more on the ballot, what was that, two years ago with in Florida. 00:03:55.280 --> 00:04:11.280 Um but uh but yeah, you know, it's uh and I you know I don't even if we see you know a shift into with the Democrats controlling both the House and the Senate, I still don't know that that changes much. 00:04:11.759 --> 00:04:28.240 Uh you know, it didn't change anything when the when the Democrats controlled you know both houses and the White House in 2020, uh you know, to 2022, because they didn't blow up the the the filibuster. 00:04:28.480 --> 00:04:31.839 So, you know, I I mean it's sure it's unfortunate. 00:04:33.199 --> 00:04:40.560 One thing that has changed, and and I I don't believe that there's a a one-issue cannabis voter out there generally. 00:04:42.720 --> 00:04:43.279 There's one guy. 00:04:43.680 --> 00:04:45.519 There's there's

a couple guys, sure, yes. 00:04:46.000 --> 00:04:56.240 Yeah, but I I do think that we are seeing a shift of candidates talking about cannabis as part of their agenda in a different way. 00:04:56.399 --> 00:05:00.560 And I've I've talked about this a bunch, but certainly pointing to Texas. 00:05:00.720 --> 00:05:18.720 I think that the um the elections in Texas, both for Senate, Lieutenant Governor, uh, and Lieutenant Governor have have talked about cannabis in a way that is using the issue to galvanize voters behind a candidate to support them based on what they're gonna fight for as it relates to cannabis for the people of Texas. 00:05:18.959 --> 00:05:25.040 And um that is a is a unique is a unique narrative for us to be seeing unfolding. 00:05:25.120 --> 00:05:26.959 And it's happening in other places as well. 00:05:27.680 --> 00:05:38.399 And these are these are yeah, so yeah, and and these are these are uh elections that have an enormous amount of money coming into them too. 00:05:38.560 --> 00:05:43.839 Um a lot this this election is going to be the most expensive election of all time. 00:05:44.079 --> 00:05:50.560 I I think that Elon Musk himself has put in something like$400 million into the election for his candidates. 00:05:50.800 --> 00:05:56.639 But um I am watching if candidates if cannabis is something that can sway voters to get behind certain candidates. 00:05:56.959 --> 00:06:02.720 I I think especially if Jeremy keeps um taking shots at Elon Musk on Twitter, it's gonna be uh it's gonna be even more expensive. 00:06:02.879 --> 00:06:04.560 Um I'll tell you what two things. 00:06:04.720 --> 00:06:14.399 One, I it is I was gonna mention uh Texas as well, but also Michigan, the Republican guy, you don't even know his name, running for governor, wants to repeal the new tax that went into effect recently. 00:06:14.480 --> 00:06:17.360 So like it's not just on the Democratic side pushing for reform. 00:06:17.439 --> 00:06:22.720 There's also Republicans pushing for reform and not in a repeal kind of way, but in a taxation kind of way. 00:06:22.879 --> 00:06:42.800 The thing that I think will be interesting for our conversations and the hemp conversation is what happens on November 4th and the lame duck session of Congress, if anything, because I think there will be an interesting conversation to have in a lame duck session around hemp now that some a whole hopefully like 40 Republicans won't be coming back next year. 00:06:42.959 --> 00:06:45.120 Like, what do they say about this issue? 00:06:45.279 --> 00:06:47.920 Does someone take it on as like their cause celeb? 00:06:48.240 --> 00:06:50.240 Uh are there banking issues that get addressed? 00:06:50.319 --> 00:06:52.240 We have this conversation every lame duck session. 00:06:52.480 --> 00:06:57.839 I would, I would, I would almost always bet on state stasis slash nothing. 00:06:57.920 --> 00:07:00.160 Uh, but there's some pretty topical things happening. 00:07:00.240 --> 00:07:02.959 They also have to keep the government open in the context of this. 00:07:03.199 --> 00:07:04.879 Um, so it will be interesting. 00:07:05.040 --> 00:07:07.120 And I mean, hey, I'll say it. 00:07:07.279 --> 00:07:16.399 If Republicans do win both the House and the Senate, and everybody gets a$5,000 check in the mail in January from the president, that will be great for the cannabis industry, to be quite honest. 00:07:16.560 --> 00:07:21.199 Last time there was government money heading out the door, it was very, very good for the industry during COVID. 00:07:21.279 --> 00:07:23.519 I just want to might as well say that. 00:07:23.680 --> 00:07:25.920 I don't think it's gonna happen, but might as well put that out there. 00:07:26.160 --> 00:07:30.639 Yeah, you know, and and people might start really believing that I look like George Clooney. 00:07:30.879 --> 00:07:31.920 So sure. 00:07:33.439 --> 00:07:34.319 I think you do. 00:07:34.720 --> 00:07:34.959 Yeah. 00:07:35.279 --> 00:07:39.680 Anyway, I want to, I want to um, I, you know, I want to just highlight. 00:07:39.759 --> 00:08:02.240 I mean, you make a great point, is that uh about about just the fact that even though it's not on the ballot, you know, the the fact that that there's more and more conversation about this stuff, both at the federal level and the state level amongst politicians is in my mind, you know, it I mean, it's it's palpable and it's it's in my mind, it's a it's a good thing. 00:08:02.480 --> 00:08:11.439 Because the, you know, five, ten years ago, you, you know, we were not, they were not having these conversations so broadly across the country. 00:08:11.759 --> 00:08:22.800 And you know, it's just it's just part, Marcel, of how this is just such a you know, changing policy on a national level is just takes so long. 00:08:23.360 --> 00:08:28.079 And um, and that's exact this kind of conversation is exactly what's needed. 00:08:28.240 --> 00:08:30.319 As painful as it is to wait for it. 00:08:30.560 --> 00:08:30.879 Yeah. 00:08:31.040 --> 00:08:41.759 So yeah, we uh last week we had uh Steve Hilton, who's the Republican um gubernatorial candidate to for California on uh the High Spirits podcast. 00:08:41.840 --> 00:08:50.000 And and he is specifically talking about how he wants to fix and improve the cannabis industry for Californians as part of his campaign. 00:08:50.080 --> 00:08:54.799 And the fact that he wanted to come on a cannabis business podcast, I thought was a bit of a surprise. 00:08:54.960 --> 00:09:01.120 We reached out to the the other candidate, Becerra's uh campaign, wasn't quite as interested to talk to us. 00:09:01.279 --> 00:09:10.000 They said, well, why don't why don't we have him talk to you after he becomes governor, which I appreciated and saw that as a sign of confidence. 00:09:10.080 --> 00:09:17.279 Uh, you know, the the the local newspaper here recently published um that Steve Hilton is basically unelectable. 00:09:17.360 -->

00:09:26.639 And and I think in California today, it is it is gonna be a tough slog for a candidate like Steve Hilton um to win. 00:09:26.879 --> 00:09:35.279 But uh the fact that the fact that they're engaging with our industry is something that brings me some optimism and and you know makes me feel more seen. 00:09:36.639 --> 00:09:39.679 I wanna I want to pick up on that because I think it's a good segue, Anna Ray. 00:09:39.919 --> 00:09:48.240 We didn't we didn't have this show last Friday because Jeremy and I were coming off of our event on Thursday night last week in Soho, which was the high rise, and it was Soho. 00:09:49.440 --> 00:09:50.000 What's that? 00:09:50.320 --> 00:09:51.759 Soho New York. 00:09:52.000 --> 00:09:52.240 New York. 00:09:52.720 --> 00:09:52.799 Yeah. 00:09:53.360 --> 00:09:53.519 Okay. 00:09:54.000 --> 00:09:56.240 Sorry, yes, not like the Soho House in downtown Toronto. 00:09:56.320 --> 00:09:58.480 That'll be cool too, but like Soho Soho. 00:09:58.720 --> 00:10:00.879 Um Soho or any of the Soho. 00:10:01.120 --> 00:10:02.080 Any of the Soho houses. 00:10:02.320 --> 00:10:21.200 But um what I what I what is in particular, and I want Jeremy to pick it up, is that I think for the first time, well, first time for us, but first time ever, uh, we had on the head of the OCM in New York and Clint Kellum, the head of the DCC in California, uh together on stage, taking questions from Jeremy and taking questions from the audience. 00:10:21.360 --> 00:10:23.679 And it was, I thought, a really good conversation. 00:10:23.840 --> 00:10:24.960 Jeremy, I want you to pick it up. 00:10:25.039 --> 00:10:29.279 One for the uniqueness of having them both on stage, but also sort of what we learned and heard. 00:10:29.600 --> 00:10:30.879 Yeah, we we we did, Jay. 00:10:31.039 --> 00:10:32.960 I think I think it was a really good conversation, too. 00:10:33.039 --> 00:10:41.440 Uh, you know, we could have gone for for three hours with them on stage, at least, you know, for for us who are cannabis policy nerds and our audience of cannabis policy nerds. 00:10:41.679 --> 00:10:44.960 Um there were two things that struck me about the conversation. 00:10:45.039 --> 00:10:50.480 I think one um was that both Clint and John, you know, are not the first regulators in their state. 00:10:50.559 --> 00:10:57.759 Um Clint came, he's almost, I think, nine years into California, and and uh John in New York is about four years into it. 00:10:57.840 --> 00:11:04.000 So they are sort of taking these agencies uh with some baked-in problems, but trying to sort of push them forward. 00:11:04.080 --> 00:11:12.000 And I think what I mean by that is their willingness to show up in a room that was not not hostile, but uh, you know, had a lot of good questions for them. 00:11:12.080 --> 00:11:17.600 I think uh, you know, was a sign of their willingness to engage and their willingness to help and try and fix the industry. 00:11:17.759 --> 00:11:21.759 So um kudos

to them for doing that, and kudos to them for for answering our questions. 00:11:21.840 --> 00:11:26.720 And uh I think Jay, you can uh also agree answering some tough audience questions too. 00:11:26.879 --> 00:11:28.240 Um so I think that was number one. 00:11:28.320 --> 00:11:38.399 And number two, I think, you know, these two people and the agencies they lead oversee, you know, billions of dollars of legal cannabis transactions per year, right? 00:11:38.559 --> 00:11:40.080 These are massive, massive markets. 00:11:40.240 --> 00:11:47.200 There are a lot of stakeholders, whether those be consumers, cultivators, processors, real retailers, anywhere you're on the supply chain. 00:11:47.279 --> 00:11:58.879 And I think understanding their thinking about what they see as the purpose of regulation, what they see uh what what their goals for the cannabis market are and how they see it evolving is really, really important. 00:11:59.120 --> 00:12:18.320 Um, and then the third piece I would say is uh, you know, which we sort of got to at the end of the discussion, was that they're not getting a lot of information from the federal government while the federal government is making large-scale changes to both their day-to-day jobs and the industry writ large, those billions of dollars of usually transactions I discussed. 00:12:18.480 --> 00:12:32.639 And so um we're in this sort of area where you know we finally do have, not finally, but I will say we have sort of real professional regulatory agencies who are trying to improve and deal with the hand they're dealt and make sure that they're working with the industry. 00:12:32.799 --> 00:12:35.600 At the same time, they are hamstrung by federal regulations. 00:12:35.679 --> 00:12:47.840 And so, you know, I told them on stage those might be the two hardest jobs in cannabis, and you know, every decision they're gonna make is gonna disappoint someone, and and that's part of being in government and part of being a regulator at the same time. 00:12:47.919 --> 00:13:00.639 Uh, you know, I think, you know, the industry needs to still get in front of them, get in those rooms, and tell them how they feel and what they what they want to do and the things they want to see out of the regulations too. 00:13:00.720 --> 00:13:03.600 And so uh, you know, I thought it was a very worthwhile conversation. 00:13:03.759 --> 00:13:09.919 Um, you know, I I'm really excited that that Clinton John agreed and and uh you know had good feedback for the for the room too. 00:13:10.240 --> 00:13:10.399 Yeah. 00:13:10.559 --> 00:13:17.840 I I would also say that um, and Jeremy, you referenced sort of stakeholders and industry stakeholders, which are sure are part of their stakeholder group. 00:13:18.000 --> 00:13:25.039 But I also thought it was interesting, I think it was John mentioned, not in passing, but like their constituencies are not just the industry. 00:13:25.200 --> 00:13:30.080 Like they have a legislature they have to work with, they have a governor they have to sort of answer to and rope in. 00:13:30.159 --> 00:13:49.519 And like this is part of the conversation, like the policy goals of our jurisdiction, the needs and wants of an industry, what consumers and patients need and want, like it's a mix, and then taxation on top of that and the federal stuff, like it it is a very complicated job, which I thought they weren't their job was not to, they didn't talk to us about how complicated their job was. 00:13:49.679 --> 00:14:06.399 But when you start to think about all the things they think about in decision making and implementation, like and and that even though John is four years in and Clint is what, nine years into an industry in in California, like that's relatively new relative to like alcohol, tobacco, agriculture. 00:14:06.559 --> 00:14:10.320 Like it's they are so new, even if it seems like they've been around forever. 00:14:10.639 --> 00:14:12.000 It's yeah, it's interesting. 00:14:12.080 --> 00:14:21.120 I mean, it they sort of moved to like, you know, if you want to take take a venture analogy here, it's like they've gone from the seed stage to like the series B stage, right? 00:14:21.200 --> 00:14:32.080 So they're still new, there's still things working out, work things to work through and processes to implement, but uh, you know, these are these are real organizations with real teeth behind them, and now it's about maturation. 00:14:32.159 --> 00:14:40.879 Um, and Jay, to your point, thinking about you know, philosophically what cannabis regulation means to these folks, you know, John made an interesting point, right? 00:14:40.960 --> 00:14:48.720 He said, look, like, you know, he he answered my question directly and refuted it when I when I said that, you know, in New York, cannabis is regulated like plutonium. 00:14:48.799 --> 00:14:52.080 Like I'm a I'm a 34-year-old man, and my idea is to get checked twice. 00:14:52.240 --> 00:14:53.600 Like, I can't smell the cannabis. 00:14:53.759 --> 00:14:57.840 I am an adult, I know what I'm buying, but you know, John did defend that in a way. 00:14:57.919 --> 00:15:06.480 He said, look, like this is a new, this is a relatively new substance that we are allowing consumers to have relatively newly legally, I should say. 00:15:06.639 --> 00:15:08.799 And he said, look, like we should control that at first. 00:15:08.879 --> 00:15:16.879 And I thought, I was like, huh, you know, I I I might not agree with that in in my politics and my viewpoint, but um, that's the way regulators think. 00:15:16.960 --> 00:15:20.799 And and I think there's uh good reasoning for that too, right? 00:15:20.960 --> 00:15:23.039 Because they want to protect the markets they're setting up. 00:15:23.200 --> 00:15:26.320 They're looking at blowback and where it's coming from and figuring that out. 00:15:26.399 --> 00:15:29.600 So I thought that was revelatory and very interesting, even if I don't agree. 00:15:29.919 --> 00:15:32.080 And

Mark, it's because drugs are scary. 00:15:32.399 --> 00:15:34.240 It is that's exactly right. 00:15:34.480 --> 00:15:36.960 I it's it all comes down to that. 00:15:39.039 --> 00:15:39.279 I don't know. 00:15:39.519 --> 00:15:41.919 You say that flippantly, but it's but it's no, no, I don't. 00:15:42.000 --> 00:15:42.320 I don't. 00:15:42.399 --> 00:15:50.480 I I say it as the way a regulator, but especially uh governors and uh legislatures do. 00:15:50.559 --> 00:16:06.159 But but this is also the point because and this this was this week, and I want to sort of uh the governor actually, I don't know if she had a press conference or press announcement, uh, Kathy Hokel in in New York was sort of promoting the fact that four billion dollars worth of cannabis has been sold since legalization. 00:16:06.320 --> 00:16:12.320 So, like it is this funny balance where they're touting the amount sold, but also want to regulate it like plutonium. 00:16:12.399 --> 00:16:28.240 Like they are in this weird space now where I think it speaks to both consumers and the industry that this is something that you could be quasi proud of having reached a milestone like four billion dollars, which California reached a long time ago, but it is interesting, and and certainly Steve Hilton is talking about it. 00:16:29.279 --> 00:16:31.440 Yeah, yeah, yeah, yeah. 00:16:31.759 --> 00:16:48.559 The the the issue about the DEA, um, you know, we've heard that now from we also heard that a couple weeks ago from um oh Gillian, uh who's um forgetting her last name, who's head of Canberra of Shower, Julian. 00:16:49.440 --> 00:16:49.679 Thank you. 00:16:49.759 --> 00:17:00.559 Yeah, um, saying the same thing, you know, the head of the Cannabis Regulators Association, but there's just no, you know, they everybody's been reaching out, there's no guidance from the DEA. 00:17:00.799 --> 00:17:09.279 And you know, it's and the DA really has little um incentive to move this along. 00:17:09.359 --> 00:17:12.880 I mean, and it's not just it's not just working with the states. 00:17:12.960 --> 00:17:26.400 I mean, it's it's issuing these regulations that will underlie how you know their level of regulation of licensed uh DEA licensed schedule three medical cannabis will work. 00:17:26.799 --> 00:17:38.240 Um, you know, so it's it's disheartening, but also not surprising to hear that, you know, that from that what you heard from the state regulators from New York and California. 00:17:38.559 --> 00:17:38.799 Yeah. 00:17:39.039 --> 00:17:58.880 I think actually one of the other things, Anna Ray, I was thinking about you while I was sitting there watching uh another panel, which was um with a data anal uh data analytics person, our guy, um uh Rick Bashkoff, um uh and two brands, one ripped, like a new brand in New York, ripped, uh, and one sort of really sort of uh what was the other Ruby Ruby Farms, yeah. 00:17:59.200 --> 00:18:04.160 Ruby Farms, like huge in every dispensary, like talking about price compression was actually quite interesting. 00:18:04.319 --> 00:18:12.720 Um it came after the regulator conversation, so I was like, oh, the wind is out of the sales, but it actually ended up being really compelling about how markets evolve. 00:18:12.799 --> 00:18:14.240 And and you talk about it a lot, Anna Ray. 00:18:14.319 --> 00:18:19.200 I think your quote was like, everybody better get used to operating with Ace at like$23. 00:18:19.599 --> 00:18:20.880 Like, I think it was something like that. 00:18:21.039 --> 00:18:23.920 Like it it was a bit of a sounds like something I might say. 00:18:24.559 --> 00:18:26.880 It was definitely something we turned it into a clip. 00:18:27.039 --> 00:18:28.319 But it was it was interesting. 00:18:28.400 --> 00:18:32.559 I think it was a good, even more so than our January event, which was the similar format. 00:18:32.720 --> 00:18:35.839 It was much more of a where is the market today in New York? 00:18:35.920 --> 00:18:40.079 It reached a real level, different level of maturity from January, frankly, to October. 00:18:40.160 --> 00:18:44.240 Um, so it was really a good time to uh connect with folks in New York for sure. 00:18:44.319 --> 00:18:47.359 And it was right on the the day that Hall of Flowers ended. 00:18:47.519 --> 00:18:54.319 So people had sort of been in the realm for two or three days and then sort of came for a really deep dive conversation, which that was really interesting. 00:18:54.720 --> 00:19:00.000 Well, I'd like to come in the future, so I'm I'm uh not only you're gonna come, you're gonna have enough notice. 00:19:00.079 --> 00:19:00.880 Yeah, you're gonna have a role. 00:19:02.000 --> 00:19:02.640 You're gonna have a role. 00:19:02.720 --> 00:19:09.599 You're gonna you're gonna be the sage, uh the sage from from California to talk about what where the market is headed in New York. 00:19:09.920 --> 00:19:10.799 That sounds great. 00:19:10.880 --> 00:19:11.920 I will be that. 00:19:12.319 --> 00:19:18.640 I want to um I I want to get I want to before we move on, I want to make one more point, not about the high-rise, but about the midterms. 00:19:18.720 --> 00:19:29.200 Um and I I you know, an array, I think I was thinking about this when I was watching the clips of Steve Hilton on your podcast, and we've been sort of ruminating uh a column about this. 00:19:30.079 --> 00:19:40.960 You know, if Democrats do get the sleep of of both chambers, you know, there's not going to be a lot of appetite for any sort of cannabis rollback, right? 00:19:41.119 --> 00:19:44.880 And so what we're seeing now, I think is super interesting. 00:19:45.039 --> 00:19:52.319 Where, you know, we have Republicans in Michigan, uh, John James, who, you know, is talking about reducing cannabis taxes, cutting red tape. 00:19:52.480 --> 00:19:55.039 Steve Hilton in California is doing the same. 00:19:55.200 --> 00:20:01.039 Uh, even Zach Lan in Iowa, he said, look, I, you know, I'm supportive of

medical marijuana. 00:20:01.119 --> 00:20:06.319 I'm not supportive of recreational, but I want to cut red tape for our medical marijuana industry. 00:20:06.400 --> 00:20:12.880 And so we're starting to see, you know, Republicans treat the cannabis industry as just another small business, right? 00:20:12.960 --> 00:20:16.160 Which should be taxed less, uh, you know, have less red tape. 00:20:16.240 --> 00:20:22.240 And look, that's not the entire Republican Party, but um, there's there's, I think, a real shift underway. 00:20:22.319 --> 00:20:28.079 And I think if Democrats control the House, they're gonna want their voice on this issue, and that's gonna be the way to get it. 00:20:28.240 --> 00:20:32.480 And so I think we'll start to see that uh bubble up from the states into the federal level. 00:20:32.640 --> 00:20:34.079 Maybe that's that's my prediction. 00:20:34.559 --> 00:20:37.359 Jeremy, they're gonna kick you out of Brooklyn and you keep talking like that. 00:20:37.759 --> 00:20:43.119 Um I don't know if if you guys uh follow Ian Dominguez from Delta Emerald. 00:20:43.279 --> 00:20:46.720 He's an investor, but he yeah, he puts out a pretty good substack. 00:20:46.880 --> 00:21:20.480 And yesterday he published a piece which I think is really worth uh reading, all about how uh the the prediction that the Democrats take the House and that the Senate stays Republican is the is the best possible outcome if some of these open hemp bills were to try to get put into the reconciliation bill due to Republicans that would be leaving, trying to basically make their mark on the policy before it got diluted by somebody else and a bunch of people are carrying it. 00:21:20.640 --> 00:21:37.599 And I thought it was a a a very thoughtful and well-conceived perspective on um on how how the way that the that the House or Senate might change or or stay the same could um could change the lame duck session as it relates to hemp and cannabis. 00:21:37.920 --> 00:21:39.039 I I will say this. 00:21:40.799 --> 00:21:46.960 Lame duck sessions where Congress is about to shift dramatically are not a particularly good time to get anything done. 00:21:47.200 --> 00:21:57.680 Um and that I mean I we've had lame duck sessions previously during the cannabis sort of conversation, but it's generally not massive sweeping uh people moving out of offices, people moving into offices. 00:21:57.839 --> 00:22:11.839 I I I if I had to predict anything of I would predict if we see a Republican Senate and a Democratic House coming in, or both houses are gonna, you know, the Senate and the House are gonna become Democratic, I would expect very, very little over the next two months. 00:22:11.920 --> 00:22:19.759 And sorry, the hemp friends that are waiting for something to happen out of out of uh DC, but I would expect it's a very challenging political time to do anything. 00:22:19.920 --> 00:22:25.680 Um I don't expect the president will all of a sudden shift gears and be like all bipartisan and shit. 00:22:26.880 --> 00:22:30.079 Um I want to get to uh winners and losers of the week. 00:22:30.240 --> 00:22:32.960 Um let me I already screwed up the intro. 00:22:33.119 --> 00:22:33.519 Ready? 00:22:33.680 --> 00:22:34.480 Hold on. 00:22:38.960 --> 00:22:40.640 I just love those booze. 00:22:40.799 --> 00:22:43.599 Mark, we're going to you first winners, losers, what do you got? 00:22:43.920 --> 00:22:48.319 Uh um uh give me a second. 00:22:48.559 --> 00:22:51.200 Okay, because I had it in my mind and then I forgot. 00:22:51.279 --> 00:22:53.920 So it just gave me a remember in array, of course. 00:22:54.880 --> 00:23:10.880 Um so I'm gonna I'm gonna call out something that you guys covered this morning and cultivated, which um is the LPA agreement in New York being um rolled back, repealed as a requirement for um recreational licensees by Governor Hochel. 00:23:11.119 --> 00:23:14.079 Um, I think that's a big win for operators. 00:23:14.240 --> 00:23:36.000 Um, and it sets a very unique precedent because so many states have required LPAs, and so many operators who I have spoken with over the years have felt that it was a major overstep, um, especially for small businesses, sometimes with 10, 12 employees of a dispensary to have to be negotiating with unions to get labor peace agreements in place. 00:23:36.160 --> 00:23:53.359 And it's just been a very challenging requirement that I think is strange and has shown the way that the unions have gotten involved in legalization in a way that um has created some challenges for many small businesses. 00:23:53.519 --> 00:23:55.359 So I think it's a really big win. 00:23:55.519 --> 00:24:17.440 Um, and I will call out specifically Gotham, um, who you guys partnered with on the high-rise, who chose to actually take this to federal court, um, which is something that for years I heard operators say in backrooms, gosh, I would love to go sue the government over this, but I just don't have the cojones to do it. 00:24:17.519 --> 00:24:20.480 Um, and I don't want to take on the regulators. 00:24:20.640 --> 00:24:33.119 So for someone to have done that and then to see this outcome just shows that um when something isn't working, that using those processes that are in place um to push back is something that you can actually win at. 00:24:33.200 --> 00:24:40.240 So um kudos to Gotham and kudos to all the operators that don't need to operate under this labor peace agreement uh going forward. 00:24:40.720 --> 00:24:45.680 Joanne is not short on Cahonas, um at Gotham, that is for sure. 00:24:46.000 --> 00:24:50.799 Um she's she's uh one of one and uh she's she's amazing. 00:24:50.960 --> 00:24:52.880 So uh are you ready, Mark? 00:24:53.119 --> 00:24:53.359 Thank you. 00:24:53.599 --> 00:24:54.799 I'm ready now, thank you. 00:24:56.640 --> 00:25:19.759 Anna Ray's mentioning of your newsletter this morning reminded me the other the the winners this week are um the the the lovers of cannabis

beverages who are able to now buy you know are are able to buy THC hemp beverages at steep discounts uh with with retailers and you know producers uh basically fire selling them. 00:25:20.000 --> 00:25:31.680 Um so the losers are you know are obviously the producers of those products, uh but you know, but right now is the time to stock up because you can get some some a nice deal. 00:25:32.079 --> 00:25:33.680 It's like having an uncle in the cabin. 00:25:34.480 --> 00:25:35.519 You know, beverage business. 00:25:35.680 --> 00:25:41.200 Well, Chris Kesaki wrote the story, actually at prices per, I think quarter pallet, half pallet, and full pallet in there. 00:25:41.279 --> 00:25:42.160 That's pretty that's something. 00:25:42.240 --> 00:25:43.599 It's a whole it was in there. 00:25:44.000 --> 00:25:46.000 It was a great story, it was great reporting. 00:25:46.319 --> 00:25:47.359 Um yeah, yeah. 00:25:48.559 --> 00:25:51.119 If you have a loading dock, now's the time to order. 00:25:52.720 --> 00:25:54.160 Jeremy, how's your loading dock? 00:25:54.240 --> 00:25:55.359 Is it stocked up? 00:25:55.680 --> 00:25:56.880 Uh it's it's not. 00:25:56.960 --> 00:26:02.640 Uh my my two-bedroom won't fit a pallet, but uh, if anyone wants to send me stuff, my fridge has some space. 00:26:02.880 --> 00:26:08.640 Um my uh yeah, Anna Ray, I I actually had the same winner uh as as you this week. 00:26:08.720 --> 00:26:11.680 Uh it was Gotham for uh winning their case. 00:26:11.759 --> 00:26:20.400 And actually, I think, you know, I think the New York cannabis market is a winner here, and and I want to make that distinction careful. 00:26:20.559 --> 00:26:28.559 Uh, you know, that I think everyone from the regulators to the businesses were looking for some certainty in the situation, and now they have it. 00:26:28.720 --> 00:26:33.920 Uh, you know, the wage board isn't fully eliminated, that will come the next legislative session. 00:26:34.000 --> 00:26:54.000 Uh, but you know, I do think that getting these issues wrapped up, uh, having the governor sign, seal, and deliver a bill that removes the LPA, I think is a positive for the cannabis industry, and it's a testament to uh Joanne Wilson and Gotham for uh actually, you know, bringing it up into court and and getting this done. 00:26:54.880 --> 00:26:57.839 Can I can I interject something uh on this? 00:26:58.000 --> 00:27:13.039 Is that well, I'm gonna do it anyway, even if you object, is that um, you know, to me the LPAs and just sort of and then the pullback on this, you know, I think part of it is sort of a more of a you know is part of probably a macro trend uh nationally. 00:27:13.200 --> 00:27:22.240 But also I think it's also one of those things where it shows that that that social the concept of social equity in cannabis just hasn't worked. 00:27:22.480 --> 00:27:36.319 And you know, and and in part because there were all these ideas thrown at the wall, and you know, but because cannabis hasn't worked out, the b the business of cannabis hasn't worked out like anybody expected. 00:27:36.640 --> 00:27:50.559 This is just one of the many ways that it just, you know, that these these agreements didn't work for the industry because the industry didn't grow as a retail business in the way that regulators and uns and retailers all thought it would. 00:27:50.799 --> 00:28:01.920 And so what might have made sense is a you know, a reasonable idea five, 10 years ago, it just you know, it was trying to it was trying to marry two ideas together that just didn't work. 00:28:02.240 --> 00:28:03.759 Well, you're opening a can of worms here. 00:28:03.839 --> 00:28:04.720 Jeremy, take it then. 00:28:04.799 --> 00:28:05.680 I'm I'm on the sack. 00:28:05.920 --> 00:28:06.319 No, no, no. 00:28:06.400 --> 00:28:19.599 I just I know we're coming on time here, but I will I will say, I mean, I I I had um uh I went on the hybrid podcast with with uh two regulators, um former regulators, one in Massachusetts and one in Maine, who who started early. 00:28:19.680 --> 00:28:23.519 Um and I made this point at the high rise to both John and Clint. 00:28:23.599 --> 00:28:32.960 And they said, look, like, you know, it was 2018 in Massachusetts, we're trying to figure out what the Wi-Fi password is and to figure out how to build you know IKEA furniture. 00:28:33.200 --> 00:28:42.319 Meanwhile, we have to get licenses up and running, we have to get capital into the newly legal cannabis sector, and we also have to solve the whole war on drugs, right? 00:28:42.480 --> 00:28:46.240 And I think you know that was that was the line that really stood out to me. 00:28:46.319 --> 00:28:54.480 Like, wow, I think you know, there's a lot of idealism in the early days that uh you know fell against the realities of economics. 00:28:54.640 --> 00:29:00.319 And, you know, I know I might get criticism for saying this, but I think you know, regulators now understand that and realize that. 00:29:00.400 --> 00:29:10.160 And that's not to say those weren't worthwhile efforts or those ideas were bad, but the execution uh was predicated on businesses that were cash flow positive and performing well. 00:29:10.240 --> 00:29:16.000 And when that wasn't the case, the whole edifice of social equity kind of fell away, as you spoke to, Mark. 00:29:16.079 --> 00:29:24.480 And so um I think we're sort of reeling with that and understanding that now that look, like we can't uh, you know, we can't make cannabis businesses solve the war on drugs. 00:29:24.559 --> 00:29:30.240 We should just make them businesses in the first place, and then we can talk about uh, you know, those broader social equity goals. 00:29:31.279 --> 00:29:32.720 Yeah, I sorry. 00:29:33.200 --> 00:29:43.440 I I will say that I I I take issue with the idea of the LPA agreement being a way to also point out that social equity didn't work. 00:29:43.599 --> 00:29:56.720 I think that the LPA requirement and and trying to get a social equity

operator at a table to negotiate with a union is an example of one of the reasons why social equity was a failure as well. 00:29:56.880 --> 00:30:16.799 I was like, these are the types of requirements that are completely inappropriate if you're trying to foster small businesses, foster innovation, and bring entrepreneurs into a new role and a new position, because sitting across the table from a union is a big eff and deal for anybody. 00:30:16.960 --> 00:30:21.039 And they come with an entourage and a power and thousands of people. 00:30:21.200 --> 00:30:32.400 And if you are an independent person that's starting your own business for the first time and has never even had an employee, and now you're required to figure out how to navigate that, um, it can get very sticky. 00:30:32.480 --> 00:30:48.960 And I think it's a perfect example of how the intent of social equity, um, while it might have been good, the amount of regulations that were put on all cannabis businesses, including social equity businesses, created obstacles that were just too big to overcome. 00:30:49.279 --> 00:30:49.839 Yeah. 00:30:50.160 --> 00:30:51.279 Um, I agree. 00:30:51.519 --> 00:30:52.480 I agree with that. 00:30:52.640 --> 00:30:55.519 Um and Dermy, you're still gonna kick kicked out of Brooklyn. 00:30:55.599 --> 00:30:57.680 Um, and you guys both might get kicked out of Northern California. 00:30:57.759 --> 00:30:58.880 I'm not 100% sure. 00:30:59.119 --> 00:31:01.680 Um uh uh with your centrist views. 00:31:01.839 --> 00:31:04.480 Oh my goodness, raging moderates all of a sudden. 00:31:04.720 --> 00:31:13.440 Um, I'm gonna give uh we weren't here last week, so we missed the anniversary of uh Canada's legalization. 00:31:13.519 --> 00:31:15.759 So eight years in, this is my winner of the week. 00:31:15.920 --> 00:31:18.480 Um, and uh we wrote about Jeremy wrote about it. 00:31:18.559 --> 00:31:23.200 Um Canada made cannabis boring and it worked, uh, or worked more or less. 00:31:23.279 --> 00:31:26.400 Um so I want to celebrate eight years of legalization here in Canada. 00:31:26.559 --> 00:31:32.880 It is um, I say this, I know what there's a double entendre, but um, it is on every high street in Canada. 00:31:33.119 --> 00:31:38.559 Cannabis is very much part of almost every neighborhood, excluding ones right next to schools. 00:31:38.720 --> 00:31:40.240 It is not a big deal. 00:31:40.480 --> 00:31:45.519 People certainly smoke it everywhere, but also um is sort of part of the fact the fabric of our lives. 00:31:45.599 --> 00:31:48.319 Nobody's repealing it, nobody's talking about doing that really. 00:31:48.480 --> 00:31:50.960 Um, and it's very normal and boring. 00:31:51.119 --> 00:31:55.839 I will say this though, and and I was at a cannabis event here in Toronto last night. 00:31:56.079 --> 00:31:59.039 Um, apparently, and we're gonna write about this more. 00:31:59.200 --> 00:32:04.960 Um, there is a brain drain from Canada in uh facilities that are EU GMP. 00:32:05.119 --> 00:32:17.839 People want those people that built those cultivation facilities and worked in them and grew in them and processed and manufactured in them all over the world, these people being poked from all over the world to leave Canada and go somewhere else. 00:32:18.000 --> 00:32:23.680 So it is interesting that there is a quasi-brain drain of cannabis sort of experts here. 00:32:23.920 --> 00:32:28.640 Um uh we'll do a little bit more on this, but uh that was one of the takeaways from this event. 00:32:28.799 --> 00:32:35.440 Um loser of the week as sort of these gross that need still people to work them and they're getting uh all over the world. 00:32:35.519 --> 00:32:36.720 But I want to thank you, Mark. 00:32:36.799 --> 00:32:38.319 Thank you, NRA, thank you, Jeremy. 00:32:38.640 --> 00:32:40.079 For this week, we'll be back next week. 00:32:40.160 --> 00:32:44.640 We will have a, I guess, a post-mortem on Tuesday's election. 00:32:44.720 --> 00:32:53.440 Hopefully, uh we'll be playing some cheerful music and then sort of unpack what it means for the cannabis industry as well, not only for democracy, but for the cannabis industry as well. 00:32:53.599 --> 00:32:55.039 So thank you all for being here. 00:32:55.119 --> 00:32:57.279 Have a good weekend, happy Halloween.