This Week In Cannabis: Gaetz’s Stock Rally, Major Policy Battles, Homeland Security’s Stance, Big Earnings And More
The cannabis industry saw major developments this week across policy, business and market trends. On the regulatory front, Florida’s appeals court upheld the state’s $1.3 million medical cannabis license renewal fees. At the same time, Virginia Governor Glenn Youngkin vetoed a cannabis sales bill—again—effectively delaying the state’s market for at least another year. Meanwhile, New York expanded its cannabis farmers market program, offering new opportunities for licensed businesses.
In federal news, a new court filing from Homeland Security and Customs and Border Protection reaffirmed that marijuana can still be “summarily” seized from state-legal businesses unless rescheduling changes federal cannabis policy. The uncertainty surrounding cannabis’ classification continues to influence market sentiment, as seen in this week’s brief rally in cannabis stocks following former Rep. Matt Gaetz’s statements about cannabis reform “being on the horizon.”
On the business side, Organigram rebranded to Organigram Global, reflecting its growing international ambitions, while iAnthus and Planet 13 reported earnings, offering insights into U.S. market performance. In Canada, cannabis sales dipped sharply in January, highlighting continued volatility in the sector.
Consumer and industry trends also made waves: a new study revealed that shifting from indoor to outdoor cannabis cultivation could cut emissions by up to 76%, while Ohio’s cannabis industry hit a major milestone, surpassing $2.5 billion in total sales.
Let’s dive into the biggest cannabis stories of the week.
Policy And Regulation
Florida Court Upholds $1.3 Million Medical Cannabis License Renewal Fee
A Florida appeals court ruled in favor of the state’s $1.3 million medical cannabis license renewal fee, rejecting arguments that the cost is unconstitutional. The fee, one of the highest in the nation, applies to all licensed medical marijuana treatment centers operating in the state.
Several operators had challenged the renewal cost, arguing that it was excessive and hindered competition. However, the court sided with state regulators, affirming their authority to set fees at levels deemed necessary to oversee the industry. Florida’s medical cannabis market remains one of the largest in the U.S., but the ruling adds financial pressure on businesses seeking to maintain licensure in the state.
Virginia Governor Vetoes Cannabis Sales Bill—Again
For the second time, Virginia Governor Glenn Youngkin has vetoed a bill that would have allowed regulated cannabis sales in the state. The decision delays Virginia’s legal adult-use market, which voters approved in 2021 but has yet to fully launch.
The vetoed legislation sought to create a regulated system for cannabis sales, including licensing and taxation. In his statement, Youngkin reiterated concerns about public health, safety and enforcement. Lawmakers and industry advocates had pushed for the bill’s passage, arguing that delays in implementing a regulated market only serve to fuel the illicit trade. With the veto, Virginia’s legal cannabis industry remains in limbo, forcing businesses and consumers to wait for a new political approach.
New York Expands Cannabis Farmers Market Program
New York’s Office of Cannabis Management (OCM) is expanding its cannabis farmers market initiative, allowing more licensed businesses to participate in direct-to-consumer sales. The program debuted last year as a temporary solution to the state’s slow retail rollout, enabling small growers and processors to sell products at designated locations without needing a standalone dispensary.
The expansion comes as the state struggles with licensing delays and an illicit market that outpaces legal sales. The farmers market model has been praised for helping small operators gain market access, but critics argue that New York’s broader licensing issues remain unresolved.
Federal Agencies Reaffirm That Cannabis Can Still Be Seized, Even In Legal States
A new federal court filing by Homeland Security and Customs and Border Protection (CBP) confirms that marijuana remains subject to summary seizure, even when transported between two legal states. The filing states that federal law still classifies cannabis as a Schedule I drug, allowing authorities to confiscate shipments without requiring criminal charges.
The legal stance reinforces ongoing challenges faced by interstate cannabis commerce advocates, particularly those hoping for federal rescheduling to ease restrictions. Industry leaders argue that such policies are outdated and hinder business growth, while law enforcement maintains that federal prohibition gives agencies broad authority to regulate cannabis transportation.
DEA Launches Anti-Weed Influencer Campaign, Sparking Criticism
The U.S. Drug Enforcement Administration (DEA) has launched an anti-cannabis social media campaign, paying teenagers to create anti-weed content ahead of April 20 (4/20). The initiative, led by nonprofit Johnny’s Ambassadors, offers students between $25 and $50 per video, aiming to “flood” Instagram with anti-THC messaging.
Critics argue that the campaign relies on outdated fear tactics rather than harm reduction strategies. The …