💸 The Tape

Ohio’s marijuana market might feel like it’s getting a surprise tax audit—one that cranks the rate from 10% to 15%, courtesy of Senate Bill 56. That extra 5% is slated to go straight into the state’s general fund, backing everything from road repairs to the morning coffee supply at the Capitol. Sen. Steve Huffman (R-Tipp City) and Senate President Rob McColley (R-Napoleon) say that revenue is necessary to cover “societal costs” tied to adult-use cannabis. In practical terms, it’s more like a government rummage sale: more cannabis dollars for Ohio, fewer goodies for the consumer.

But that’s not the only curveball. Under this bill, Ohio would trim the maximum home grow from twelve plants to six and ban social equity programs, effectively yanking the rug out from under diversity initiatives. If that’s not enough to harsh your buzz, the proposed legislation also chops the THC product cap to 70% (down from 90%), which is sure to make some connoisseurs double-check their receipts. And just in case you were feeling like cruising around with your stash in the passenger seat, lawmakers want it secured in the trunk—out of sight, out of mind.

Arguably more concerning is the elimination of Ohio’s social equity and jobs program, which had aimed to give smaller operators a fighting chance in a cannabis space increasingly dominated by big players. Instead of fostering an inclusive marketplace, the move could nudge out newcomers and further entrench well-funded dispensaries. Speaking of dispensaries, Senate Bill 56 wants to cap the state’s count at 350, requiring them to sell both medical and adult-use. Fewer shops plus a higher tax might send flower prices drifting north.

This legal tinkering has already sparked debate among stakeholders. “We don’t want to create chaos in what’s been called one of the best-run programs in the nation,” says David Bowling, executive director for the Ohio Cannabis Coalition. With recreational sales nearing $300 million since launching last summer, the market has proven its popularity with voters and a wide array of consumers. Yet because the 2023 law passed as an initiated statute rather than a constitutional amendment, legislators can theoretically reshape it at will.

So, is this new approach an overdue fine-tuning of Ohio’s cannabis framework, or a legislative stress test that might undercut market stability? Whichever side you take, one thing’s certain: an budding industry now faces a fresh set of hurdles. And in the cannabis game, uncertainty is one commodity no one welcomes.

📈 Dog Walkers

VA Is Setting Itself Up For A Fresh Veto

Virginia lawmakers are revisiting marijuana retail sales, advancing a bill to begin regulated adult-use cannabis in 2026. Sen. Aaron Rouse (D) and Del. Paul Krizek (D) lead similar legislation, which would let adults buy up to 2.5 ounces with a tax up to 11.625%. Retailers must be licensed by the Virginia Cannabis Control Authority, and local governments could opt out via referendum. The bill sets THC limits, restricts certain felons from licensing, and bans delivery services. Although a similar plan passed before, Gov. Glenn Youngkin (R) vetoed it. With home cultivation already legal, lawmakers aim to curb the thriving illicit market.

Kentucky Is Out Of Gates

Kentucky just hit 2,200 approved medical cannabis cardholders, underscoring growing consumer buy-in for marijuana as a safer treatment alternative to opioids. Meanwhile, 66 unlucky applicants got sidelined by paperwork glitches—but can apply again. Gov. Beshear is even pressing Congress to fix Second Amendment roadblocks that prevent card-carrying patients from owning firearms. Clearly, there’s no shortage of political intrigue in Bluegrass medical cannabis country.

🗞️ The News

When can cannabis businesses challenge compliance standards?

The Good Shroom Co Inc. announces Corporate Name Change to Mercanto Holdings Inc., provides a Market Expansion Update and adoption of New Stock Option Plan

📺 YouTube

Why Cannabis Needs Big PAC Support | Trade to Black

What we covered:

✅ On our latest Trade To Black Podcast, “Big” Mike Straumietis from Advanced Nutrients hops on with us again to discuss the challenges the cannabis industry will face in 2025 from a cultivation standpoint. He emphasizes the need for companies to focus on quality over quantity.

With Amendment 3 failing to pass in Florida for Adult Use Cannabis, many Florida operators, especially big MSOs, are showing more concerns for pricing versus quality. However, he believes there is a market for quality based on the science that Advanced Nutrients provides.

Advanced Nutrients has been elevating cannabis cultivation through education and best-in-class products for over 40 years. They have examples of raising THC levels by 42% for some companies in the cannabis industry. Genetics and environment are crucial when developing a cannabis plant.