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New year brings new laws, rules for cannabis businesses nationwide

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With the start of a new year, cannabis companies across the country are tweaking their business models to meet changing laws and regulations that could affect sales and how they run their operations.

Expanded delivery, new packaging and labeling restrictions as well as the introduction of loyalty programs and deep product discounts top some of the biggest regulatory shifts underway in 2023.

MJBizDaily explored how these changes will affect businesses in several states with legal marijuana markets, including California, Michigan, Oregon and Utah, among others.

California

In the world’s largest marijuana market, California’s Department of Cannabis Control and state lawmakers approved several business amendments and laws that took effect in late 2022 or on Jan. 1.

Among the most influential in the retail space:

  • Cannabis delivery vehicles can now carry $10,000 of product, doubling the previous amount.
  • Vehicle inventory is no longer required to be allocated or pre-purchased. Under the former rules, delivery vehicles could have only $5,000 worth of product in it at any time, with $3,000 of that total pre-purchased, limiting inventory on routes. With no allocations set aside for pre-purchases, consumers will have more product choice on designated routes, an important factor given the traffic issues throughout California that slow deliveries and, ultimately, sales.
  • Curbside delivery is now allowed at all licensed retailers.
  • The collection of a 15% excise tax and payment to the state’s Department of Tax and Fee Administration shifts from cannabis distributors to retailers.

California consultant Hirsh Jain called the regulatory changes to delivery the most consequential policy development of the year.

“Delivery operators will be able to offer much more robust access to legal cannabis in California’s sprawling cannabis deserts,” said Jain, the principal of Los Angeles-based Ananda Strategy.

“They will also be able to carry a larger and more diverse selection of products, which better meet consumer needs, increasing demand within the legal market.”

Chris Violas, CEO of Orange County-based marijuana retail software maker Blaze, applauded the change to permanent curbside pickup and delivery, a system first enacted in the early days of the pandemic.

“I’m a big fan of omnichannel, really allowing the customer to choose where they order, how they order, where they pick up and how they pick it up,” he said.

“So reducing friction at any point on the transaction is really, really important.”

Vince Ning, founder and co-CEO of California distributor Nabis, said the excise tax shift will likely result in a near-term cash-flow crunch for retailers.

“As a result, operators will need to work together to mitigate these risks and avoid financial instability due to the abrupt nature of the transition,” he said.

Oregon

In November, the Oregon Liquor and Cannabis Commission adopted several rules aimed at improving testing standards as well as product labeling and packaging.

Marijuana producers will face hefty fines of up to $500,000 if their products pose a threat to public safety and up to $100,000 if labels contain “untruthful or misleading content.”

Under the new regulations, state operators must relabel product potency if audit testing determines discrepancies between the initial test results and follow-up findings, with violations escalating to potential product recalls.

In addition, testing labs are now required to retain samples for 30 days.

“Recalls are very expensive, so that’s definitely a concern for packaged good companies and brands across the state,” said Mason Walker, CEO of Takilma-headquartered East Fork Cultivars, a craft marijuana and hemp breeder, cultivator and product maker.

The new rules will have an impact on East Fork Cultivars.

The Takilma-based company in November acquired Peak Extracts, a cannabis extractor and product maker in Portland.

The purchase expanded East Fork’s product distribution to more than 400 retail outlets in the state, according to Walker.

In a potential boon for Oregon retailers, regulators lifted a ban on selling products below their wholesale cost while allowing customer-loyalty programs.

Before the rule change, stores were often stuck holding the bag if products didn’t sell or inventory piled up.

“Retailers are allowed to discount product down to a penny,” Walker said.

“I think we’re going to see a lot more aggressive discounting, so consumers should rejoice. They’re going to see lower costs for cannabis across the market this year.”

Utah

Medical marijuana dispensaries and manufacturers in Utah’s already restrictive MMJ market will likely face more retail challenges in the new year.

Among the new rules that took effect Jan. 1, cannabis product packaging, logos and brand names must be preapproved by the state’s Department of Agriculture and Food.

Retail operator Greta Brandt expects regulators to keep a watchful eye on product packaging, particularly regarding a requirement that logos can account for only 20% of a package’s face design.

“This is where we’re going to see a lot of change in how products are presented, as well as fluctuations as products may be pulled, reformulated and rebranded,” said Brandt, the president of The Flower Shop.

The company operates dispensaries in Logan near the Idaho border and Ogden, roughly 45 minutes north of Salt Lake City.

Michigan

In this market, what’s not taking effect will have significant fallout for some cannabis industry professionals.

Michigan marijuana operators had hoped three Republican-sponsored bills that gained bipartisan support for easing regulatory requirements would be signed into law in December.

But Democratic Gov. Gretchen Whitmer vetoed them all, arguing they were “rushed through a lame duck session,” according to media reports.

House Bill 5839 would have prevented regulators from denying license applicants based on their spouse’s job, including employment at state or federal government agencies.

HB 5871 would have granted MMJ companies more leeway in transferring and purchasing product, while also prohibiting background checks and fingerprint scans of an applicant’s spouse under certain conditions.

Douglas Mains, a cannabis attorney at Detroit-based law firm Honigman, said hesitant and concerned spouses have delayed the licensing process for several of his clients.

“Requiring the spouses of officers, owners or board members to submit to fingerprinting and background vetting when the spouse will have absolutely no involvement in the business can be an onerous and off-putting process that could preclude or deter some businesses or investors from entering the Michigan market,” he said.

“Additionally, we have had a number of clients who have applied for licensure while in the process of going through a divorce.

“In those cases, the applicant either had to wait to submit their application until the divorce was finalized or negotiate with their spouse to submit all of the required forms and documentation.”

Other markets to watch

Elsewhere, several states continue to refine their regulations, while others create entirely new frameworks.

In Colorado, House Bill 1020 would overhaul the state’s social equity program.

In New York, where recreational sales launched in late December, regulators have yet to finalize several regulatory policies and operational procedures, including product testing as well as government-supported property leasing and facility construction for social equity licensees.

Though Clark County, Nevada, approved consumption lounges in September, its most-populous city, Las Vegas, has not finalized rules and regulations for them, the Las Vegas Review-Journal reported in late December.

In late June, Nevada regulators approved their final regulations for 60-65 consumption lounges in the state.

Source: https://mjbizdaily.com/2023-brings-new-laws-and-rules-for-cannabis-businesses-nationwide/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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