Government
Some Cities Are Inadvertently Supporting Illicit Cannabis Sales, According To New Report
Instead of reasonably regulating legal sales, it’s increasingly common for leaders to opt out of legalized sales entirely, with unintended consequences.
Leafly released a first-of-its-kind report detailing the unintended and harmful consequences that occur when local municipalities choose to opt out of legal and regulated cannabis sales.
The report, developed in partnership with Whitney Economics, a global leader in cannabis and hemp business consulting, data, and economic research, reveals the adverse consequences of opting out and explores why local regulation, not local prohibition is the right way to handle cannabis.
Opting In To Legalized Sales Would Benefit The Entire Community
After legal cannabis is approved in a state, numerous legalization laws enable local municipalities to establish specific regulations within cities and counties. That is, they can choose to sell cannabis or not to sell cannabis.
According to the Leafly report, “instead of reasonably regulating legal sales, it is increasingly common for leaders to opt out of legalized sales entirely, with unintended consequences that effectively create an economic protection zone for illegal street sellers to continue the business.”
Leafly’s Opt-Out Report found that local leaders who choose to opt out of cannabis sales are hurting their communities by:
- Indirectly encouraging adult consumers to purchase illegal products
- Putting public health at risk by allowing the circulation of untested products
- Sustaining illegal sales to local teens
- Turning away local jobs and tax revenue
- Continuing the losing War on Drugs
Bruce Barcott, the report’s lead author and Leafly’s senior editor, said “this report demonstrates that legal, regulated cannabis stores put illicit marijuana dealers out of business.
“Fears surrounding local cannabis stores may prompt elected officials to prohibit cannabis companies in their towns. But adults in every community already purchase and enjoy cannabis, legal or not,” he said. “The cities and counties that skip out on cannabis are essentially voting to keep their local illegal marijuana markets in business.”

The Opt-Out Cannabis Sales Situation In Some U.S. States
After four years of legal cannabis in California, illegal street sellers still satisfy more than 50% of the state’s adult consumer marijuana demand, and it’s no coincidence that 62% of the state’s municipalities have opted out of regulated retail sales.
More recently in New Jersey, which launched legal cannabis sales this past April, 71% of local municipalities have prohibited the sale of legal, state-regulated cannabis. “That has left the state’s adult consumers with few legal options. With only one store for every 358,000 residents, illegal street sellers still command more than 80% of the marijuana market,” according to Leafly.
In New York, which will begin legal recreational cannabis sales soon, 50% of all municipalities have chosen to opt out. New York’s Cannabis Control Board (CCB) recently adopted regulations allowing home cultivation for card-carrying MMJ patients and caregivers.
“Today, nearly 45% of Americans live in a legal, adult-use state. If pending legalization measures gain approval on the November ballot, half of all Americans could live in a legal cannabis state by 2023,” continued the Leafly report. “In every newly legal state, local officials will be called upon to regulate cannabis in ways appropriate for their community. Opting out isn’t a vote against marijuana—it’s a vote in favor of illegal dealers.”

Report Methodology
The data in Leafly’s 2022 Opt-In Report “derives from a variety of public and private sources. Unless otherwise noted, data cited by Leafly and Whitney Economics represents market conditions as of July 1, 2022. Cannabis sales figures and active license numbers are dynamic. We chose July 1, 2022, as a firm point-in-time mark to ensure data completeness from all states under review.”
According to the report:
- The number of legal cannabis stores per capita was derived using public licensing data released by state cannabis regulatory agencies. The state population is current as of the 2020 US Census.
- The percentage of cannabis sales captured by the legal market “was derived by comparing each legal state’s annual cannabis sales with that state’s Total Market Estimation,” the authors said.
- TME is defined as the value of total cannabis sales in a calendar year, regardless of the legal status of the product.
Finally, Beau Whitney, co-author of the report and founder of Whitney Economics said: “Access and taxes, those are the keys to customer migration to the legal market (…) And right now we’re seeing illegal cannabis sales propped up by opt-out cities and counties.”
Corruption
Vigilance Arrests Officials After Bribery Complaints at Supply Office
HARIDWAR, Uttarakhand — Officials from the Dehradun-based Vigilance Department have arrested Haridwar District Supply Officer Shyam Arya and two other employees on charges of accepting a bribe of ₹50,000, authorities confirmed. The arrests took place during a planned operation after investigators laid a trap at the District Supply Office in response to repeated complaints from the public.
According to vigilance sources, the accused were caught “red-handed” while receiving the alleged bribe, reportedly demanded in exchange for official services within the department. The operation, coordinated from the state capital of Dehradun, underscores the department’s commitment to tackling corruption.
Complaints That Triggered the Operation
The arrests followed months of complaints alleging that officials at the Haridwar District Supply Office were routinely soliciting illegal payments for government services. These included the issuance of ration cards, approvals for licenses, and other administrative clearances under the public distribution system.
Vigilance officials said preliminary verification of the complaints indicated a recurring pattern rather than isolated incidents. Following this assessment, the department used a standard anti-corruption tactic of laying a trap to obtain direct evidence of bribe solicitation and acceptance.
Inside the Supply Office
After the arrests, vigilance teams established a presence inside the office, sealing parts of the premises while examining files and records. Investigators are reviewing documentation related to recent approvals and transactions to determine whether the alleged bribery was systemic.
The accused are also being questioned to identify potential accomplices and to ascertain whether accepting bribes was a routine practice. Officials noted that the investigation could expand depending on findings from the document review and interrogations.
A Broader Anti-Corruption Push
The case has drawn attention across Uttarakhand’s administrative machinery, particularly within the Supply Department, which plays a vital role in delivering welfare services. Vigilance officials said the arrests reflect a “zero-tolerance” approach toward corruption and warned that similar operations will continue wherever credible complaints arise.
The state’s anti-corruption drives have intensified in recent months, emphasizing both deterrence and accountability. While the investigation in Haridwar remains in its early stages, officials say it highlights the risks faced by public servants accused of exploiting their positions and the growing willingness of enforcement agencies to act on citizen complaints.
Business
A Tipping Point for Cannabis: President Trump Champions CBD & Cannabis Science on Truth Social
When the President of the United States shares a video about the life changing potential of hemp derived CBD on his personal social media platform, it is more than news, it is a cultural shift.
For decades our government lied to us about cannabis. It demonized the plant, waged war on its users, and filled prisons while allowing pharmaceutical companies to flood the nation with addictive and deadly drugs. For over a century we have been fighting uphill, not just for legalization, but for truth, for science, and for the right to heal ourselves naturally.
Now in 2025, the most powerful political figure on Earth is using his own voice and platform to talk about the endocannabinoid system and the science backed benefits of CBD. That is monumental. It is validation for everyone who has fought, been arrested, been silenced, and been dismissed for telling this truth. The President’s video post is already being described as a pivotal moment in cannabis history, and President Trump CBD Cannabis Science Truth Social is trending across platforms as advocates celebrate the breakthrough.
The Science Behind the Endocannabinoid System
The video begins by introducing something most people, including many doctors, still know little about, the endocannabinoid system. Discovered in the 1990s, the ECS is a network of receptors and signaling molecules that works as the body’s master regulator, coordinating communication between major systems like the nervous, immune, cardiovascular, and digestive systems.
The roots of this discovery go back much further. CBD was first isolated in 1940 by American chemist Roger Adams, but it was Dr. Raphael Mechoulam, an Israeli organic chemist, who fully elucidated the chemical structure of CBD and identified its stereochemistry in the 1960s. His pioneering work not only opened the door to modern cannabinoid science but also earned him the title “Godfather of Cannabis Research.” It was this foundation that led to the identification of the endocannabinoid system itself decades later, revealing how cannabinoids interact with our physiology on a fundamental level.
The ECS is now widely recognized as a vital part of human biology, with extensive research supported by the National Institutes of Health. When functioning properly, the ECS acts like the conductor of an orchestra, ensuring every section plays in harmony. As we age, the system weakens. That imbalance is linked to inflammation, chronic pain, cognitive decline, sleep problems, and many other conditions associated with aging.
Mainstream medicine often addresses these issues with pharmaceutical band aids, dangerous and addictive drugs that treat symptoms rather than root causes. Lifestyle changes such as diet and exercise help, but they only partially support the ECS and do so slowly over time.
Hemp Derived CBD: A Game Changer for Aging
Here is where the science gets exciting. As the video explains, the ECS can be restored much more quickly with hemp derived CBD. Strengthening this system naturally helps the body regain balance, reducing pain, improving sleep, lowering stress, slowing disease progression, and even extending healthy lifespan.
It is not theoretical. One in five seniors is already using CBD to manage pain, arthritis, cancer symptoms, sleep disorders, Alzheimer’s, and more. Despite decades of research and acknowledgment from institutions like the National Institutes of Health, most physicians receive no training on the ECS. There are still no FDA standards for CBD products on the market. If that were the case for any other class of medicine, it would be considered malpractice.
The World Health Organization has confirmed CBD’s excellent safety profile and non addictive nature in its critical review report. The result is that millions of older Americans are suffering unnecessarily when a safe and natural solution exists.
Hemp derived CBD is a powerful first step in restoring balance to the endocannabinoid system, but it is only part of the picture. Research shows that full spectrum cannabis extracts, which include a broader range of cannabinoids and terpenes, can work even more effectively. Complete concentrated cannabis oil, containing the full spectrum of natural endocannabinoids, may deliver the most profound results for certain patients. Expanding access to these therapies will be essential if we want to unlock the full healing potential of this plant.
The Economic and Social Impact
The video cites a powerful figure. A PricewaterhouseCoopers analysis estimates that fully integrating cannabis into the healthcare system could save the United States nearly 64 billion dollars annually. These savings reflect reduced pharmaceutical dependency, fewer hospitalizations, improved chronic disease outcomes, and enhanced quality of life for aging Americans. You can read more about PwC’s research on healthcare innovation here.
It is a financial argument, but it is also a moral one. Why should our elders endure pain, anxiety, and cognitive decline when nature has given us tools to help them live longer, happier, and healthier lives?
A Call to Action: Finish What the Farm Bill Started
The message concludes by crediting the 2018 Farm Bill, championed by President Trump, for legalizing hemp and laying the groundwork for today’s CBD market. The Farm Bill was just the first step.
Now the call is for bold next moves.
- Educate doctors about the endocannabinoid system
- Include CBD under Medicare coverage
- Provide clear federal standards for CBD quality and dosing
These steps would constitute the most significant senior health reform in modern history, one that would transform aging and cement a powerful legacy for any administration that makes it happen.
What This Means for Future Cannabis Medicine
For those of us who have been in the cannabis community for decades, this is not just another news story. It is a signal that our movement is winning. A conversation that was once criminalized and censored is now being amplified by the President of the United States on his own platform.
It means the science is undeniable. It means the truth can no longer be buried. It means the wall of prohibition is cracking, not just legally, but culturally, scientifically, and politically.
It also means that everything we have been fighting for at 420 Magazine since 1993, education, access, healing, and justice, is finally moving full steam ahead. The President Trump CBD Cannabis Science Truth Social moment is proof that science and policy are finally converging.
Business
New Mexico cannabis operator fined, loses license for alleged BioTrack fraud
New Mexico regulators fined a cannabis operator nearly $300,000 and revoked its license after the company allegedly created fake reports in the state’s traceability software.
The New Mexico Cannabis Control Division (CCD) accused marijuana manufacturer and retailer Golden Roots of 11 violations, according to Albuquerque Business First.
Golden Roots operates the The Cannabis Revolution Dispensary.
The majority of the violations are related to the Albuquerque company’s improper use of BioTrack, which has been New Mexico’s track-and-trace vendor since 2015.
The CCD alleges Golden Roots reported marijuana production only two months after it had received its vertically integrated license, according to Albuquerque Business First.
Because cannabis takes longer than two months to be cultivated, the CCD was suspicious of the report.
After inspecting the company’s premises, the CCD alleged Golden Roots reported cultivation, transportation and sales in BioTrack but wasn’t able to provide officers who inspected the site evidence that the operator was cultivating cannabis.
In April, the CCD revoked Golden Roots’ license and issued a $10,000 fine, according to the news outlet.
The company requested a hearing, which the regulator scheduled for Sept. 1.
At the hearing, the CCD testified that the company’s dried-cannabis weights in BioTrack were suspicious because they didn’t seem to accurately reflect how much weight marijuana loses as it dries.
Company employees also poorly accounted for why they were making adjustments in the system of up to 24 pounds of cannabis, making comments such as “bad” or “mistake” in the software, Albuquerque Business First reported.
Golden Roots was fined $298,972.05 – the amount regulators allege the company made selling products that weren’t properly accounted for in BioTrack.
The CCD has been cracking down on cannabis operators accused of selling products procured from out-of-state or not grown legally:
- Regulators alleged in August that Albuquerque dispensary Sawmill Sweet Leaf sold out-of-state products and didn’t have a license for extraction.
- Paradise Exotics Distro lost its license in July after regulators alleged the company sold products made in California.
Golden Roots was the first alleged rulebreaker in New Mexico to be asked to pay a large fine.
Source: https://mjbizdaily.com/new-mexico-cannabis-operator-fined-loses-license-for-alleged-biotrack-fraud/
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