Wednesday

06-18-2025 Vol 1995

Crackdown on Unlicensed Cannabis Operations and Regulatory Developments Across the U.S.

In recent months, Washington, D.C. has intensified its efforts to shut down unlicensed cannabis businesses. This includes the closure of at least five establishments, such as District 93 on U Street NW, Wellshroomness on Kennedy Street NW, Crown Tobacco on Florida Avenue NW, and B&K Convenience Store and Smoke Shop on 18th Street NW. Additionally, Pot Paradise and H & Vape Smoke Shop on H Street NE have also faced closure orders due to engaging in illegal operations.

These illicit operations have led to significant law enforcement activity, with authorities seizing various items, including cannabis products, THC-infused edibles, psychedelic mushrooms, and in one case, even a firearm accompanied by ammunition.

Market regulations continue to be a contentious issue, particularly in light of the “Harris Rider,” a provision consistently included by Rep. Harris in federal budget legislation for nearly a decade. The provision prohibits D.C. from using locally generated funds to implement a regulated recreational marijuana market, despite the fact that D.C. voters overwhelmingly approved legalization in a 2014 referendum.

In contrast, Maryland is seeing success in its cannabis-related revenue generation. The Comptroller’s Office recently announced that the state collected over $17.5 million in adult-use cannabis sales tax revenue from January to March 2025. This revenue, predominantly from the central region, supports various initiatives, including community reinvestment and public health programs. It is worth noting that the state is set to increase its cannabis tax rate from 9% to 12% on July 1st.

Meanwhile, in Virginia, Aaron Ramon Miller, the owner of Zarati cannabis-related shops, has reached a plea deal in a drug and money laundering case, successfully avoiding prison time. Miller will instead serve three years of supervised probation and forfeit over $400,000 in cash and luxury items, including two Rolls-Royces that were confiscated during a raid in September 2023. The investigation uncovered that approximately $9 million was laundered through his business accounts.

In a separate legal matter, a Virginia federal judge dismissed a wrongful termination lawsuit filed by a construction worker who was fired based on accusations of cannabis use at work. The ruling reinforced that state law allows employers to terminate employees based on such allegations, even if they are later proven unfounded.

In other cannabis-related news from the region, New York’s Office of Cannabis Management recently issued a recall of over 100 cannabis products from more than 30 brands sold at licensed dispensaries. This action was taken due to safety concerns regarding these products. Additionally, a bill in Delaware is proposing to restrict the sale of non-alcoholic beverages containing THC to liquor stores only.

Maine’s lawmakers have deferred a significant bill that would have mandated contaminant testing and tracking for medical cannabis, allowing the state to remain the only one without such requirements in its medical cannabis market this year.

On the cultural side of cannabis, social media platforms Facebook and Instagram appear to have lifted their restrictions on search results related to “marijuana” and “cannabis.” This change now permits users to access content from cannabis businesses, media outlets, advocacy groups, and state regulatory agencies.

Some parents with autistic children are exploring the potential benefits of cannabis as a treatment option, though healthcare professionals are advising caution due to an inconclusive body of scientific evidence surrounding its effectiveness.

Recent studies also indicate that practices aimed at optimizing the legal marijuana market—such as accelerating plant maturation and increasing cannabinoid content—are inadvertently reducing the genetic diversity of cannabis strains globally, resulting in a concerning bottleneck effect. Furthermore, the characteristic skunky aroma synonymous with cannabis is evolving due to breeding practices, leading to modern strains that feature scents reminiscent of lavender, citrus, or even baked goods.

In legislative developments across the country, Florida lawmakers are advancing a bill that would revoke medical cannabis cards from individuals convicted of cannabis-related offenses. This move could significantly impact patients who rely on cannabis for medical purposes.

A new report reveals that California’s legal cannabis industry is nearing collapse due to a combination of high taxes, competition from the illicit market, and overbearing regulations, prompting many licensed businesses to reevaluate their position in the regulated market. Similarly, Texas Lieutenant Governor Dan Patrick is advocating for a near-total ban on THC products, targeting loopholes that currently allow a booming market for hemp-derived cannabinoids. However, critics warn that such a ban could lead to the loss of over 50,000 jobs and billions in revenue, while also driving consumers back to black market sources.

In Minnesota, legislators are working to clarify the regulatory framework for the state’s currently unregulated THC market, aiming to enhance product safety and improve consumer access to cannabis products.

In Colorado, a Denver dispensary has voluntarily recalled several cannabis products after the Marijuana Enforcement Division discovered the presence of Aspergillus mold in some items during an investigation. Meanwhile, Montana Governor Greg Gianforte vetoed a bill that aimed to allocate cannabis tax revenue to local law enforcement and conservation projects.

In California, the administration of Governor Gavin Newsom is taking steps to impose a permanent ban on hemp-derived THC products that produce intoxicating effects. Officials assert that this action is critical for safeguarding public health and supporting the regulated cannabis market.

Lastly, Senator Steve Daines noted that he has not engaged in discussions regarding the SAFER Banking Act, while also highlighting that the House Cannabis Caucus has yet to convene on related matters.

As cannabis policy continues to evolve across states, the landscape remains complex, punctuated by ongoing regulatory challenges and efforts towards broader acceptance and integration.

image source from:outlawreport

Benjamin Clarke