From Dogs To Pesticides: Cannabis Legalization Causing Shake-Ups In Law Enforcement And Industry

Washington Cracks Down On Cannabis Businesses Over Pesticide Use

The Washington State Liquor and Cannabis Board has temporarily shut down several outdoor cannabis farms and processing facilities in north-central Washington after tests showed high levels of chemicals related to DDT, a pesticide that was banned in the US in 1972.

The chemical, known as DDE, remains when DDT breaks down and has been linked to cancer, premature birth and other health problems. Regulators decided to issue "administrative holds" on 16 producer licenses and two processing licenses in the area, forcing them to cease operations until further notice.

Marijuana Tax Rules Under Scrutiny In Nevada As Growers Face Dire Financial Situation

Nevada's marijuana growers claim they are being overtaxed. The state's tax formula uses the fair market value (FMV) of a pound of cannabis, which is currently set at $1,944. However, the actual wholesale price is half that amount.

Two proposals have been introduced to adjust taxation. One proposal would set a flat 15% tax on wholesale transactions between unaffiliated companies, while transfers within vertically integrated operations would be taxed in accordance with the FMV. The proposal would decrease tax revenue by $19 million in FY 2023.

The other proposal suggests eliminating the wholesale tax and increasing the current retail tax on recreational sales from 10% to 15%, resulting in a $15 million loss in 2023. Department of Taxation officials said that eliminating the wholesale tax would reduce their workload.

Illinois Cannabis Industry Stalls As Job Growth Plateaus

After a surge in job growth in the Illinois marijuana industry following the legalization of recreational pot sales, the rate of job growth slowed dramatically in 2022. The Vangst Cannabis Jobs Report, which analyzed data from employment platform Vangst and cannabis-research firm Whitney Economics, showed that employment in Illinois rose by only 4%, reaching just under 30,000, compared to a 72% increase in 2021. Nationally, industry employment decreased by 2% last year, which marked the first decline in ten years.

K9 Units Adjust To New Marijuana Laws

Police departments in Missouri are re-evaluating their K9 programs as marijuana is legalized for recreational use in the state. The O’Fallon Police Department has stopped imprinting new dogs to identify cannabis after watching its legalization in neighboring states.

Other departments, such as St. Louis County, are applying for grants to purchase supplies for new controlled substance training. The decision comes in an effort to prevent any constitutional violations while also using marijuana odor as probable cause for impaired driving. Existing dogs trained in marijuana detection cannot be untrained, causing challenges for some departments.

Photo by Jason Jarrach on Unsplash

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Posted In: CannabisGovernmentMacro Economic EventsNewsRegulationsCommoditiesRetail SalesLegalEconomicsMarketsbanned pesticidesBio Detection K9cannabis jobs reportCannabis PesticidesCannabis TaxesIllinois cannabisMissouri CannabisNevada CannabisWashington Cannabis
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