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MedMen Temporarily Closes All Locations And Condemns Looting In Internal Memo

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The national marijuana dispensary chain MedMen has temporarily closed down all of its stores after several of its Los Angeles-based locations were looted over the weekend. While the company strongly condemned the looting, it said it recognizes the tragedies that led up to the incidents and is offering to support its black employees during this time.

Businesses in cities across the country have been impacted by outrage over recent police killings of black Americans. That includes George Floyd, whose death at the hands of a Minneapolis police officer ignited mass protests, some of which have been followed by looting.

In an internal memo to MedMen employees that was obtained by Marijuana Moment, the company said that its locations in downtown Los Angeles, West Hollywood and Beverly Hills “were heavily damaged, as were a number of other businesses, including those in the cannabis community.”

“Effective immediately, we are temporarily closing all stores and the corporate office to protect the safety of our employees,” the memo states. “The safety of everyone in the MedMen family is the most important thing right now, and we are grateful to report that while our stores were damaged, our employees and security guards were unharmed.”

“Our assumption is that all of you know this, but we want to take the time to make it very clear there is a bright line between the peaceful protests yesterday and the criminal activity that followed,” it continues. “We do not know what goes through the mind of those that would promote violence or destruction immediately on the heels of a peaceful protest designed to bring us all closer together.”

But while that language largely contrasts with that of some other impacted marijuana businesses that have more clearly sympathized with people expressing outrage in the face of police killings, MedMen also extended a hand to its black workers and said it appreciates the circumstances that contributed to the situation.

“Regarding the events of the last week, we are heartbroken, outraged and horrified by the tragic events in our country and the continued violence and injustice perpetrated against the Black community. To our Black colleagues, if there is any way we can show up for you during this time, we would encourage you to email [the CEO’s office],” the company said. “In the meantime, we offer our deepest empathy, we are here to listen, we are here to help and we are here to stand with you as a MedMen family in any way we can.”

“To those fighting for social justice, MedMen stands with you. The horrifying treatment of our black colleagues and community must end,” MedMen added in a statement to Marijuana Moment. “Systematic oppression and inequality must end. We are committed to using our platform to help. We will rebuild and come back stronger in a way that makes our communities proud and advances justice and equality.”

A spokesperson said that the company is actively assessing its plan moving forward. While the representative initially suggested to Marijuana Moment that employees would continue to be paid during the temporary shutdown, he later said that the company “will take care of our employees as demonstrated by our response to COVID-19” but could not get into specifics about ongoing financial decisions.

Meanwhile, the rapper Berner, who owns the popular Los Angeles dispensary Cookies, said after his shop was looted that ensuring justice and addressing the problems underlying the protests is more important than the loss of merchandise.

“It’s extremely unfortunate what happened to our store tonight on Melrose. But as a human living in the world we’re living in today, I cannot expect anything less until justice is served,” he said. “We can rebuild our store, but you cannot bring someone back to life.”

Debby Goldsberry, the executive director of the dispensary Magnolia Wellness Oakland, struck a similar tone in a Facebook post about their experience being looted. She said that while the property loss was extensive and will hit the small retailer hard financially, this “story is not about Magnolia Wellness. It’s about this nation, blistering in pain. It’s bubbled up, and can’t be stopped, no matter how much salve we put on it.”

“Our shop can be rebuilt, but the black lives taken by the police, again and again, are gone forever. Simply put, the police are murdering people right before our eyes, and the anger has boiled over. We saw it on camera, watching these men rampage through our space,” she wrote.

“Anger like this is based in injustice. Anger like this is based in facts. Anger like this is based in hundreds of years of oppression, and in never, ever getting a fair shot, no matter what, because the system is set up in a systematic manner that assures you never will,” the post continues. “George Floyd’s horrible death is just one of so many by now that it’s become impossible to track.”

Kris Krane, president of 4Front Ventures, said one of the company’s Mission dispensaries in Chicago was also raided over the weekend.

“Despite the sadness and destruction, my support for the protests and the underlying goal of ending police brutality, systemic law enforcement reform, and societal recognition of the fundamental humanity of people of color in this country remains undeterred,” he said. “I stand with those protesting for human rights and justice, and understand why some feel so disempowered that they have no recourse but rage and violence.”

Cannabis shops from California to Oregon have impacted by looting in recent days.

This story has been updated to include additional commentary on future plans from a MedMen spokesperson

Rapper Who Owns Looted Marijuana Dispensary Says Justice Is More Important Than Business

Photo courtesy of WeedPornDaily.

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Missouri Regulators Derail Medical Marijuana Business Ownership Disclosure Effort With Veto Threat

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Missouri regulators say they feel requiring medical marijuana business license ownership disclosures under a House-approved amendment could be unconstitutional, and they may urge the governor to veto the legislation. 

By Jason Hancock, Missouri Independent

An effort by lawmakers to require disclosure of ownership information for businesses granted medical marijuana licenses was derailed on Thursday, when state regulators suggested a possible gubernatorial veto.

On Tuesday, the Missouri House voted to require the Department of Health and Senior Services provide legislative oversight committees with records regarding who owns the businesses licensed to grow, transport and sell medical marijuana.

The provision was added as an amendment to another bill pertaining to nonprofit organizations.

Its sponsor, Rep. Peter Merideth, D-St. Louis, said DHSS’s decision to deem ownership records confidential has caused problems in providing oversight of the program. He pointed to recent analysis by The Independent and The Missourian of the 192 dispensary licenses issued by the state that found several instances where a single entity was connected to more than five dispensary licenses.

The state constitution prohibits the state from issuing more than five dispensary licenses to any entity under substantially common control, ownership or management.

On Thursday, a conference committee met to work out differences in the underlying bill between the House and Senate.

Sen. Eric Burlison, a Republican from Battlefield and the bill’s sponsor, called the medical marijuana amendment an “awesome idea. I think it’s awesome.”

However, he said opposition from the department puts the entire bill in jeopardy.

“The department came to me,” he said, “and said they felt that this was unconstitutional.”

DHSS has justified withholding information from public disclosure by pointing to a portion of the medical marijuana constitutional amendment adopted by voters in 2018 that says the department shall “maintain the confidentiality of reports or other information obtained from an applicant or licensee containing any individualized data, information, or records related to the licensee or its operation… .”

Alex Tuttle, a lobbyist for DHSS, said if the bill were to pass with the medical marijuana amendment still attached, the department may recommend Gov. Mike Parson veto it.

The threat of a veto proved persuasive, as several members of the conference committee expressed apprehension about the idea of the amendment sinking the entire bill.

Merideth said the department’s conclusion is incorrect. And besides, he said, the amendment is narrowly tailored so that the information wouldn’t be made public. It would only be turned over to legislative oversight committees.

Rep. Jered Taylor, R-Republic, chairman of the special committee on government oversight, said the amendment is essential to ensure state regulators “are following the constitution, that they’re doing what they’re supposed to be doing.”

The medical marijuana program has faced intense scrutiny in the two years since it was created by voters.

A House committee spent months looking into widespread reports of irregularities in how license applications were scored and allegations of conflicts of interest within DHSS and a private company hired to score applications.

In November 2019, DHSS received a grand jury subpoena, which was issued by the United States District Court for the Western District. It demanded the agency turn over all records pertaining to four medical marijuana license applications.

The copy of the subpoena that was made public redacted the identity of the four applicants at the request of the FBI. Lyndall Fraker, director of medical marijuana regulation, later said during a deposition that the subpoena wasn’t directed at the department but rather was connected to an FBI investigation center in Independence.

More recently, Parson faced criticism for a fundraiser with medical marijuana business owners for his political action committee, Uniting Missouri.

The group reported raising $45,000 in large donations from the fundraiser. More than half of that money came from a PAC connected to Steve Tilley, a lobbyist with numerous medical marijuana clients who has been under FBI scrutiny for more than a year.

This story was first published by Missouri Independent.

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Colorado Sold More Than Half A Billion Dollars In Legal Marijuana In 2021’s First Three Months

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More than $10.5 billion in cannabis has been sold in Colorado since it was legalized in 2014. Those sales translate into over $1.7 billion in tax revenue that goes towards public schools, infrastructure projects and local government programs.

By Robert Davis, The Center Square

Colorado’s marijuana sales eclipsed the half-billion dollar mark in the first quarter of 2021, the state Department of Revenue (DOR) said on Tuesday.

In all, marijuana sales were over $560 million between January and March. More than $10.5 billion in marijuana has been sold in Colorado since it was legalized in 2014.

Those sales translate into over $1.7 billion in tax revenue that goes towards public schools, infrastructure projects and local government programs.

DOR compiles its monthly marijuana sales report by adding the state’s medical and recreational sales together. The total does not include marijuana accessories or any products that do not contain medical marijuana.

Marijuana sales reached $207 million in the month of March alone. In exchange, the state collected $39.6 million in taxes.

Marijuana tax revenue is collected through three state taxes: a 2.9 percent sales tax on marijuana sold in stores, a 15 percent tax on retail marijuana and a 15 percent retail marijuana excise tax.

State law requires 71 percent of the total to be remitted to the marijuana tax cash fund, a budget account that is statutorily required to fund health care, health education, substance abuse prevention and treatment programs and law enforcement.

The remaining 29 percent is then subdivided between the state public school fund and the general fund. Schools receive just over 12 percent of the total while the general fund receives greater than 15 percent.

In April, the public school fund received over $14 million. The account supports school construction projects and is controlled by the School Board Investment Fund, a three-member panel responsible for maintaining the fund’s capital that was established in 2016.

Meanwhile, the marijuana tax cash fund received over $16 million and the general fund received $3.5 million.

This story was first published by The Center Square.

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Missouri Medical Marijuana Business Ownership Info Would Be Disclosed Under House-Approved Amendment

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The state isn’t supposed to issue more than five dispensary licenses to any entity under substantially common control, ownership or management—but an analysis found instances where a single entity was connected to more than five licenses.

By Jason Hancock, Missouri Independent

The Missouri House voted Tuesday afternoon to require state regulators to turn over ownership information for businesses granted medical marijuana licenses to legislative oversight committees.

The amendment, which was approved 82-59, was sponsored by Rep. Peter Merideth, D-St. Louis. He said the Department of Health and Senior Service’s decision to deem ownership records confidential has caused problems in providing oversight of the program.

Tuesday’s vote came a day after analysis by The Independent and the Missourian of the 192 dispensary licenses issued by the state found several instances where a single entity was connected to more than five dispensary licenses.

According to the constitution, the state can’t issue more than five dispensary licenses to any entity under substantially common control, ownership or management.

But because DHSS has steadfastly withheld any ownership information about license holders from public disclosure, it’s impossible to determine who owns what.

The situation has bred suspicion, especially in light of more than a year of scrutiny by state lawmakers into widespread reports of irregularities in how license applications were scored and allegations of conflicts of interest within DHSS and a private company hired to score applications.

“We’ve asked the department: ‘Are there any entities that have complex ownership structures so that someone that owns one license actually owns or has a controlling interest in a whole bunch of others?’” Merideth said. “The department said, ‘nope.’ We asked for records to confirm that, and the department said, ‘nope.’”

He has no reason to trust the department, Merideth said, “based on how this program has been managed so far,” adding later that DHSS is in “dire need of accountability and transparency.”

His amendment would not require DHSS to make ownership information publicly available. The department would only be required to turn records over to legislative committees upon request.

Joining him in support of the amendment was Republican Rep. Jered Taylor of Republic, who is chairman of the special committee on government oversight.

“The department should be disclosing this information,” he said, saying he’d actually support going further and making the information publicly available.

Taylor later added: “If we want to do our jobs correctly, we have to have the information.”

DHSS justifies withholding the information from public disclosure by pointing to a portion of the medical marijuana constitutional amendment adopted by voters in 2018 that says the department shall “maintain the confidentiality of reports or other information obtained from an applicant or licensee containing any individualized data, information, or records related to the licensee or its operation… .”

Rep. Shamed Dogan, R-Ballwin, said DHSS is asking lawmakers and the public to trust that they are enforcing limits on license ownership.

“When I as a Republican I hear ‘trust us’ from the government,” he said, “I usually say no. Trust but verify.”

Merideth’s amendment was added to a Senate bill pertaining to nonprofit organizations. The legislation now heads back to the Senate, where it can either vote to send it to the governor or request a conference committee to work out differences with the House.

This story was first published by Missouri Independent.

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