Issue 49: Georgia Considers Expanding Patient Access (and The State's Cannabis Duopoly)
Regulators, Pharmacists, and Cannabis Companies are a tight knit group in the Peach State. Plus: Dispensaries in Massachusetts are closing, sometimes to little fanfare.
This week: I promise I’m going to be using this space in the coming days to talk about companies that aren’t Trulieve, but I couldn’t help but talk about the shinanigans they are currently up to in Georgia. I also get into some of the details surrounding dispensary closures in Massachusetts.
Georgia Considers Expanding Patient Access (While Also Expanding The Botanical Sciences and Trulieve Duopoly)
Georgia’s Board of Pharmacy will vote next week on a proposal to allow independent pharmacies in Georgia to sell low-THC products that are produced by the state’s licensed cannabis businesses. These new rules would allow medical patients to purchase products without having to travel to one of the state’s handful of dispensaries.
It’s a proposal that almost dares you to have the gall to oppose it: How could you be against expanding patient access and helping out mom and pop pharmacies, right?
Here’s the problem, though: This is a convenient way to further entrench the state’s cannabis duopoly. As mentioned in a previous issue, Georgia’s medical program is currently set up so only two companies — Trulieve and Botanical Sciences — have the right to grow and produce medical cannabis products.
It’s safe to say that the process of awarding these licenses wasn’t exactly scandal-free, and the Georgia Access to Medical Cannabis Commission hasn’t exactly been an agency that values transparency.
It’s also worth remembering that Trulieve made a big lobbying push to get the current medical marijuana law passed in Georgia, at one point employing five lobbyists — including one who just happened to be the son of Georgia’s House Speaker at the time.
If passed, it’s safe to say these new rules will be celebrated at the Georgia Pharmacy Association’s upcoming Convention at Omni Amelia Island Resort in Florida, where Botanical Sciences is sponsoring the “President’s Bash” party and Trulieve is a gold-level sponsor. The convention is scheduled to begin the same day that the vote will be held, and some of the members of the Board of Pharmacy are set to head down to the luxury resort to participate in a panel discussion two days later.
Trulieve Following the Florida Playbook in Georgia
Trulieve’s regulatory capture in Georgia mimics their playbook in Florida, where they were also awarded an initial medical cannabis license under controversial circumstances. By getting in at the ground floor, Trulieve was able to be the main financial beneficiary of the program’s gradual expansion. It’s now the biggest chain of dispensaries in Florida, which is the largest medical marijuana market in the country.
Don’t just take my word for it: Trulieve CEO Kim Rivers herself has said that Georgia reminds her of the early days in Florida.
Patients in Georgia deserve better access to medical cannabis in the same way that Florida residents deserve legal access to cannabis for recreational use, but the ugly truth is that supporting either of these causes at the current moment also supports Trulieve’s capture of state cannabis markets.
If Georgia truly wants to support medical cannabis access, perhaps they should start by giving business licenses to more than two companies.
After Trulieve’s Exit, Dispensary Closures in Massachusetts Begin to Accumulate
I realized earlier this week that no one had really been chronicling every dispensary closure in Massachusetts, so I decided to do something about that.
You would think that keeping track of dispensary closures wouldn’t be that tricky, but that’s where you would be wrong. Local media outlets have failed to cover a few of these businesses closing up shop, and the CCC still includes many of these locations on their “Find a Retailer” and “License Tracker” pages.
Heck, some of the businesses themselves have tried to obscure the fact that one of their dispensaries has closed. Commonwealth Alternative Care’s webpage for their Cambridge location still exists, but it pushes you towards ordering for delivery instead (without acknowledging that their physical storefront in the city no longer exists).
Tilt Holdings (CAC’s parent company) did not appear to make any sort of public announcement about the closure. It would not shock me if some people who are investors in the company weren’t even aware that this location has closed.
I don’t think I missed any closures, but if I did, drop me a line.
Edit: David Rabinovitz reached out to remind that Sira (now Ayr) closed in Cambridge due to a permit dispute. And now that I think of it, Healthy Pharms (now Mission) never re-opened their dispensary in Cambridge either. Until there’s any sign these locations will re-open, I’ll add them to the list. Thanks to everyone who helped contribute to compiling this list.
MORE ON MASSACHUSETTS: The Cannabis Control Commission voted 5-0 to support making it easier for veterans to obtain medical cannabis. More details in my CCC meeting recap, which will be out later today for paid subscribers.
A Message From Our Friends At Trella
Ready to take control of what and how you consume? 🌿 Check out Trella's Grow Our Own app for free educational content and insider tips on growing and making your own plant medicine! Dive into a world of hands-on learning and unlock the secrets to becoming a self-sufficient, confident grower. Start your green-thumb adventure now!
New England
RI CULTIVATORS CONCERNED WITH SLUGGISH ROLLOUT OF RECREATIONAL CANNABIS SALES (Sarah Doiron, Anita Baffoni | WPRI)
The state allowed five medical marijuana dispensaries to begin selling recreationally back in December, of which four cultivate their own cannabis. Since then, only a few additional dispensaries have opened up.
“This needs to be expedited as fast as possible,” Ballou added. “Otherwise, we’re all in jeopardy of losing our businesses.”
ANALYSIS: A RI Senate committee just voted in favor of the Governor’s nominations for the state’s CCC, and a full Senate vote is expected on Tuesday. Even so, we’re still months away from new retail licenses being awarded. Drastic action is going to need to be taken if Rhode Island wants to ensure these small independent growers don’t go under.
CONNECTICUT LAWMAKERS SEND MARIJUANA INDUSTRY TAX RELIEF AND REGULATION BILLS TO GOVERNOR (Kyle Jaeger | Marijuana Moment)
Under provisions of the budget legislation, licensed cannabis businesses in the state would be able to deduct “the amount of ordinary and necessary expenses that would be eligible to be claimed as a deduction for federal income purposes…but that are disallowed under Section 280E of the Internal Revenue Code because marijuana is a controlled substance under the federal Controlled Substance Act.”
ANALYSIS: Several states, including Massachusetts and Illinois, have made similar moves. It pretty clear by now that tax debt will be one of the major themes in cannabis in 2023.
Rest of U.S / National
LEAFLY REMOVES STORIES ABOUT TRULIEVE FACTORY WORKER’S DEATH🔒(Alex Harapin | WeedWeek)
Leafly took down two stories investigating the death of a Trulieve factory worker in Massachusetts. Lorna McMurrey, 27, died at a hospital in January 2022 after she collapsed during her shift at Trulieve's factory in Holyoke, Massachusetts.
ANALYSIS: Here’s a link to Part 1 and Part 2 of the story that Leafly (apparently) doesn’t want you to read. The deletion of this story with no comment is cowardly, to say the least.
ALLEGATIONS OF PONZI SCHEME, FORGED DOCUMENTS PLAGUE CANNABIS REIT IIPR (Adam Jackson | Green Market Report)
Cannabis real estate investment trust Innovative Industrial Properties Inc. (NYSE: IIPR) is facing more legal fury from its shareholders. The plaintiffs allege that the REIT’s directors neglected to properly vet two of its largest tenants, Southern California-based Kings Garden and Parallel, resulting in considerable financial losses when the tenants became embroiled in scandal.
ANALYSIS: Not great news for the #MSOgang! IIPR is a partner with just about every major multi-state operator, both public and private.
CRITICS QUESTION WHETHER BIDEN-SIGNED MARIJUANA RESEARCH LAW HAS ‘ANY VALUE’ (Christ Roberts | MJBiz)
In a Substack post last July, Pennington highlighted the new authorities granted to the DEA regarding cannabis research, arguing they are counterproductive.
Those include the ability to unilaterally determine whether an application to study the drug is incomplete and then, without consequence, to ignore the application.
More recently, Pennington pointed out how the research reform bill altered the Controlled Substances Act to create cannabis-specific research requirements, independent of the drug’s status under the act.
ANALYSIS: Any bill that relies on the DEA to operate in good faith is probably doomed from the get-go. It’s absurd that we continue to let a law enforcement agency have a role in federal marijuana research.
International
RASTAFARI GAIN SACRAMENTAL RIGHTS TO MARIJUANA IN ANTIGUA AND BARBUDA (Luis Andres Henao | Associated Press)
On the same ground where their enslaved ancestors were forced to plant sugar cane, Rastafari on this small island nation are now legally growing and ritualistically smoking marijuana.
For Rastafari, the practice brings them closer to the divine. But for decades, many have been jailed and endured racial and religious profiling by law enforcement because of their marijuana use.
ANALYSIS: By my count, this makes Antigua and Barbuda the sixth Caribbean government to recognize the right to spiritual use of cannabis. Here’s an updated infographic that shows the cannabis policy situation in the Caribbean.
The Stanley Cup Final is in full swing, and the Vegas Knight’s assistant equipment manager picked up a big assist in Game 2 by instantly getting a new stick to a player who then played a key role in scoring a critical goal.
This cat, who wants you to either buy something or get out.
Special Bulletins
Kudos to Jason Reposa at Good Feels put together this spreadsheet highlighting existing job opportunities in the space in the wake of the Trulieve layoffs.
If you’re in the New England area, be sure to check out the Parabola Center’s Federal Cannabis Policy Crash Course tomorrow at Boston Public Library! Burn After Reading readers can use the code PARTNER50 to get a $5 ticket.