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Congressional Bill Aimed At Protecting Kids Online Could Cause Headaches For Marijuana Businesses

Published
1 month agoon

A newly filed bill in Congress aimed at protecting children online could create headaches for advertisers trying to promote legal marijuana and other regulated substances.
Titled the Kids Online Safety Act (KOSA), the bipartisan proposal—from Sens. Marsha Blackburn (R-TN) and Richard Blumenthal (D-CT) as well as Senate Majority Leader John Thune (R-SD) and Senate Minority Leader Chuck Schumer (D-NY)—would create a “duty of care” for online platforms such as social media and streaming video services, requiring them to take steps to prevent access to potentially sensitive content by minors.
That includes advertisements for cannabis products and certain other drugs and services.
A factsheet from Blackburn’s office says the duty of care “requires social media companies to prevent and mitigate certain harms that they know their platforms and products are causing to young users.”
The sponsors say the legislation is necessary to protect children from pernicious practices that keep “kids glued to their screens” for hours a day, alleging that “Big Tech is trying every method possible to keep them scrolling, clicking ads, and sharing every detail of their life.”
The 63-page bill “targets the harms that online platforms cause through their own product and business decisions,” the factsheet says, “like how they design their products and applications to keep kids online for as long as possible, train their algorithms to exploit vulnerabilities, and target children with advertising.”
Much of the proposal is aimed at limiting content that fuels behavioral health disorders. Platforms would need to “exercise reasonable care in the creation and implementation of any design feature to prevent and mitigate the following harms to minors,” it says, listing eating and drug use disorders, suicidal ideation, violence and harassment, sexual exploitation, financial harm and others.
As for controlled substances, online platforms would be prohibited from facilitating the “advertising of narcotic drugs, cannabis products, tobacco products, gambling, or alcohol to an individual that the covered platform knows is a minor.”
The provision around drug use lists the “distribution, sale, or use of narcotic drugs, tobacco products, cannabis products, gambling, or alcohol” as risks that platforms would need to actively guard minors against.
Video streaming platforms meanwhile, would be required “to employ measures that safeguard against serving advertising for narcotic drugs, cannabis products, tobacco products, gambling, or alcohol directly to the account or profile of an individual that the service knows is a minor.”
“Big Tech platforms have shown time and time again they will always prioritize their bottom line over the safety of our children, and I’ve heard too many heartbreaking stories to count from parents who have lost a child because these companies have refused to make their platforms safer by default,” Blackburn said in a press release about the legislation.
“We would never allow our children to be exposed to pornography, sexual exploitation, drugs, alcohol, and traffickers in the physical space,” she added, “but these platforms are allowing this every single day in the virtual space. Congress must not cave to the wills and whims of Big Tech, and we must not be bullied into submission. Now is the time to stand up and protect future generations from harm by passing KOSA.”
Schumer said he is “proud to support this bipartisan legislation which provides necessary guardrails to protect our kids.”
“Too many kids have had their personal data collected and used nefariously. Too many families have lost kids after they took their own lives because of what happened to them on social media,” the Democratic minority leader said in the release. “I thank these brave parents and families for sharing their stories. Keeping our kids safe from online threats should not be a partisan issue, I thank my Senate colleagues for championing these bills and I look forward to swift passage.”
Few in the public policy space oppose the intent of the legislation, but some say its broad and potentially vague requirements could be difficult in practice.
Shoshana Weismann, a fellow at the free-market R Street Institute, said the measure could ultimately block wide swaths of online advertising that are accessible by minors—even if the ads don’t target children, as the bill’s proponent’s suggest.
“The problem is that the knowledge standard here is so loose,” she said in an email to Marijuana Moment, pointing to the bill’s definition of knowledge by platforms that they’re serving content to underage users.
It says that ‘‘know’’ or ‘‘knows’’ means to “have actual knowledge or knowledge fairly implied on the basis of objective circumstances.”
“That can be used to mean that platforms ‘should have known’ that a user was a minor,” Weismann said, “because they were, say, researching colleges, looking at SpongeBob memes, or by lots of other arbitrary possible criteria.”
An FAQ section on the factsheet from sponsor Blackburn’s office says that the bill would not impose age verification requirements or force users to provide their government IDs. But Weismann says platforms might ultimately decide that’s the only prudent way to shield themselves from liability under the proposal.
“Despite the authors’ claims, the only way to avoid liability here is to verify the ages of users,” she said. “Even then, there is no guarantee that minors won’t come into contact with the specified content.”
The previous version of KOSA, introduced in the 118th Congress, won Senate approval last summer but did not pass out of the house.
After last year’s Senate passage of the measure, Jenna Leventoff, ACLU’s senior policy council and director of the civil right’s group’s national political advocacy division, said she was skeptical the legislation would pass constitutional muster.
A number of states have attempted to adopt bills similar to KOSA, Leventoff pointed out, and “in almost every case, a court has evaluated those laws and determined that they are likely to be unconstitutional.”
“It’s extremely likely that KOSA is unconstitutional,” she said at the time,” and it makes me wonder why Congress is trying to enact something that won’t hold up in a court of law.”
At the state level last year, Colorado’s Senate passed a bill similarly aimed at protecting minors from drug and other controversial content. But the proposal—which was later put on hold indefinitely by a House committee—drew fire from advocates such as Weismann at R Street Institute.
She and other critics pointed out at the time that the bill could ban content around over-the-counter cough syrup and even, potentially, the Colorado governor’s social media posts in favor of the state’s legal psychedelics industry.
Under existing regulations, states that have legalized have generally seen less cannabis consumption among young people compared to states where marijuana remains illegal, according to a study last year in the Journal of the American Medical Association (JAMA) Pediatrics. That study found that legalization was generally associated with more young people reporting not using marijuana, along with increases in those who say they don’t use alcohol or vape products either.
Those findings reinforced previous observations that legalizing and regulating marijuana for adults typically does not increase youth use of the substance, contrary to what opponents of the policy change often argue.
An analysis of government survey data published earlier this year by the advocacy group Marijuana Policy Project, meanwhile, found that youth marijuana use declined in 19 out of 21 states that legalized adult-use marijuana—with teen cannabis consumption down an average of 35 percent in the first states to legalize a decade ago.
Exploring Psychedelic Medicine Is A ‘Top Priority’ For Trump Administration, FDA Commissioner Says

Author: mscannabiz.com
MScannaBIZ for all you Mississippi Cannabis News and Information.
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DeSantis Signs Bill To Strip Florida Medical Marijuana Cards From People With Drug Convictions

Published
10 minutes agoon
July 1, 2025
Some medical marijuana patients and caregivers in Florida could see their state cannabis registrations revoked under a bill signed into law by Gov. Ron DeSantis (R) this week.
DeSantis on Monday signed SB 2514, a broad budget bill that touches on cancer, dentistry and other health-related matters. But it also contains a provision that directs the state Department of Health (DOH) to cancel registrations of medical marijuana patients and caregivers if they’re convicted of—or plead guilty or no contest to—criminal drug charges.
The measure says a patient or caregiver would have their registration immediately suspended upon being charged with a state drug crime, and the suspension would remain in place until the criminal case reaches a final disposition.
DOH officials would have authority to reinstate the registration, revoke it entirely or extend the suspension if needed.
Authorities would be required to revoke a person’s registration if the patient or caregiver “was convicted of, or pled guilty or nolo contendre to, regardless of adjudication, a violation [of state drug law] if such violation was for trafficking in, the sale, manufacture, or delivery of, or possession with intent to sell, manufacture, or deliver a controlled substance.”
The enacted version of the legislation focuses specifically on production and distribution. It does not contain an earlier restriction from prior versions that would have also revoked registrations for people who merely purchased illegal drugs, including more than 10 grams of marijuana for their own use.
It also clarifies that patients and caregivers would have a process to request their registrations be reinstated. That would involve submitting a new application “accompanied by a notarized attestation by the applicant that he or she has completed all the terms of incarceration, probation, community control, or supervision related to the offense.”
It’s not clear from the plain language of the revised bill whether it would impact only future criminal cases involving medical marijuana patients and caregivers or whether DOH would need to review the records of existing program registrants and revoke registrations of an untold number of Floridians with past drug convictions.
Notably, lawmakers defeated several proposals to expand the medical cannabis program during this year’s regular legislation session—including by allowing home cultivation, adding new qualifying conditions, protecting employment and parental rights of patients and letting military veterans register for free.
Separately in Florida, advocates are working toward putting a new adult-use marijuana legalization measure on the 2026 state ballot following the failure of Amendment 3 at the polls last November.
After filing the measure and launching a signature drive earlier this year, the campaign Smart & Safe Florida has collected 377,832 valid signatures—about 150,000 more than required to kick off the review process, according to Division of Elections numbers from last month.
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The state is now statutorily obligated to conduct a judicial and financial review of the measure that will determine its legal eligibility and inform the electorate about its potential economic impact.
Smart & Safe Florida is hoping the revised version will succeed in 2026. The campaign—which in the last election cycle received tens of millions of dollars from cannabis industry stakeholders, principally the multi-state operator Trulieve—incorporated certain changes into the new version that seem responsive to criticism opponents raised during the 2024 push.
For example, it now specifically states that the “smoking and vaping of marijuana in any public place is prohibited.”Another section asserts that the legislature would need to approve rules dealing with the “regulation of the time, place, and manner of the public consumption of marijuana.”
Gov. DeSantis had repeatedly condemned the 2024 initiative over that issue, claiming there were not parameters to prevent public smoking, while expressing his distaste for the smell of cannabis.
The governor said in February that the newest measure is in “big time trouble” with the state Supreme Court, predicting it will be blocked from going before voters next year.
Last year, the governor accurately predicted that the 2024 cannabis measure from the campaign would survive a legal challenge from the state attorney general. It’s not entirely clear why he feels this version would face a different outcome.
While there’s uncertainty around how the state’s highest court will navigate the measure, a poll released in February showed overwhelming bipartisan voter support for the reform—with 67 percent of Florida voters backing legalization, including 82 percent of Democrats, 66 percent of independents and 55 percent of Republicans.
However, the results conflict with another recent poll from the Florida Chamber of Commerce, a proactive opponent of legalization, that found majority support for the reform among likely voter (53 percent) but not enough to be enacted under the 60 percent requirement.
In the background of the campaign’s signature development, DeSantis signed a GOP-led bill to impose significant restrictions on the ability to put initiatives on the ballot—a plan that could impair efforts to let voters decide on marijuana legalization next year.
Separately, a Florida GOP senator claimed recently that the legalization campaign “tricked” Trump into supporting the 2024 measure by misleading him and the general public about key provisions.
Ahead of the election, Trump said in September that he felt Amendment 3 was “going to be very good” for the state.
Before making the comments, Trump met with the CEO of Trulieve, Kim Rivers, as well as with a GOP state senator who is in favor of the reform.
While Trump endorsed the Florida cannabis initiative—as well as federal rescheduling and industry banking access—he has since been silent on cannabis issues. And his cabinet choices have mixed records on marijuana policy.

Author: mscannabiz.com
MScannaBIZ for all you Mississippi Cannabis News and Information.
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TerrAscend Exiting Michigan, Will Sell 4 Cultivation Facilities, 20 Dispensaries

Published
1 hour agoon
July 1, 2025
[PRESS RELEASE] – TORONTO, June 30, 2025 – TerrAscend Corp., a leading North American cannabis company, announced that it has completed a strategic review of its Michigan business operations and decided to exit the Michigan market.
As part of the exit plan, TerrAscend and its consolidated entities intend to sell or divest all of the company’s Michigan assets, including four cultivation and processing facilities, 20 retail dispensaries, and real estate. Net proceeds from the divestitures will be used to pay down existing company debt.
The Michigan exit is expected to be substantially completed in the second half of 2025. The company’s business in Michigan will be reported as discontinued operations beginning with the company’s financial results for the second quarter of 2025.
Following the completion of the Michigan exit, the company will operate 19 dispensaries and four cultivation and processing facilities across five states, including New Jersey, Maryland, Pennsylvania, Ohio and California, and in Toronto, Ontario. The strategic move is expected to meaningfully enhance TerrAscend’s financial profile. The company anticipates improvements across key metrics on a consolidated basis, including gross margin, adjusted EBITDA, and cash flow conversion, in addition to a strengthened balance sheet.
“After an extensive evaluation, we have made the strategic decision to exit the Michigan market,” TerrAscend Executive Chairman Jason Wild said. “Michigan is an extremely difficult market, and we have come to the realization that our resources can be better utilized in our other markets. This move will unlock value for TerrAscend and its shareholders. By concentrating our efforts and resources in the company’s core northeastern U.S. markets—New Jersey, Maryland, Pennsylvania and Ohio—I am confident that we are now positioned to deliver stronger financial performance, including improved margins and operational efficiencies.”
The actions associated with the Michigan exit plan are expected to include a reduction of approximately 21% of the company’s overall workforce, which consists of about 1,200 employees as of June 30, 2025. Most of this reduction is expected to occur by the end of the third quarter of fiscal year 2025.

Author: mscannabiz.com
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New Mexico Steps Up Enforcement Against Illicit Marijuana Operators With Hiring Of New Officers

Published
2 hours agoon
July 1, 2025
“We’ve become the mecca for ‘mota’…and we have to ask ourselves: Is that really what we want to be?”
By Patrick Lohmann, Source NM
More than three years after New Mexico legalized recreational marijuana, the state has become a national poster-child for recreational marijuana sales, and not in a good way, argues state Sen. Joseph Cervantes (D-Las Cruces).
“We’ve become the mecca for ‘mota’,” Cervantes said, using a slang term for marijuana common in New Mexico. “And we have to ask ourselves: Is that really what we want to be?”
He and other state lawmakers on the Legislature’s interim Courts and Criminal Justice Committee met Monday morning in Taos to discuss the proliferation of shops across the state, as well as their hopes for a new band of cannabis officers tasked with enforcing laws the Legislature enacted when it legalized recreational marijuana in April 2022.
Since legalizing cannabis, New Mexico retailers have sold about $1.7 billion combined in adult-use and medical cannabis, with the help of more than 1,600 licensed cannabis-related businesses such as retailers, testing labs and producers, according to a presentation from state Regulation and Licensing Department officials who spoke at the committee meeting.
While the industry is booming, high-profile examples of marijuana scofflaws in the state prompted lawmakers this session to pass House Bill 10, which funds the hiring and training of a new team of fully certified law enforcement officers empowered to bring criminal charges against those they suspect are lying about the source of the marijuana, exploiting their workers or altering the drug.
In the coming days, the state will advertise for a police chief in charge of the new crew of officers, according to Clay Bailey, superintendent of the New Mexico Regulation and Licensing Division. From there, they’ll hire up to six more officers.
“I really want seasoned people that know what they’re doing, [who have] dealt with drugs and things, and know what they’re getting into,” Bailey said of the new hires.
HB 10 also empowers the new officers to do more forensic accounting within the state’s system for tracking growers from seed to sale. The new hires free up inspectors to undertake audits to determine, for example, whether growers are lying about where their inventory came from or if they’re flooding the market with illegal products, Bailey said.
40 dispensaries and one grocery store
No limits exist in state law on the number of licenses that can be issued, and local jurisdictions also cannot ban cannabis dispensaries from operating, according to the Regulation and Licensing Division, though they can control how far apart they must be. Maestas suggested lawmakers change state law to grant control over licenses to towns and cities.
In Sunland Park, which borders Texas, where recreational marijuana is illegal, up to 40 cannabis retailers exist, state officials said Monday.
“This is just not healthy,” said Cervantes, whose senate district includes Sunland Park. “This is not a healthy environment for my community, for Sunland Park to have 36 [to] 40 dispensaries, one grocery store, maybe one liquor store.”
According to state data presented Monday, the town of less than 20,000 people has generated the second-highest amount of marijuana revenue in the state since April 2022. Regulators have tallied more than $127 million in recreational sales revenue from nearly 3 million transactions. Albuquerque, the highest-earning city, has generated more than $350 million.
According to a 2024 Pew Research Center study, Oklahoma has the highest number of marijuana dispensaries per capita in the country, with 36 per 100,000 residents. Cervantes estimated New Mexico to be about 30 per 100,000, which puts it far ahead of early marijuana adopters California and Colorado.
A coalition of about 100 cannabis businesses in June 2023 asked the governor to issue a pause on new licenses, saying they faced too much competition and chaos from a “flourishing” black market.
The issue has not gone away. Several lawmakers said they want to see the issue addressed in next year’s 30-day legislative session. Though budget-focused, New Mexico Gov. Michelle Lujan Grisham (D) could deem the topic germane.
“I hope you’ll ask the governor to fix what needs to be fixed,” Cervantes told the state cannabis regulators at the meeting, “and have us do that in the remaining administration in the 30-day session coming up.
The governor’s office did not immediately respond to a request for comment late Monday afternoon. However, in a town hall meeting in July in Española, the governor did acknowledge that the state needed to fix its process for licensing, in response to a resident’s complaint about the number of dispensaries.
“Expect the state to propose some restrictions,” the governor said, drawing applause, saying that the licensing “didn’t roll out the way we intended for it to roll out.”
This story was first published by Source NM.
Photo courtesy of Chris Wallis // Side Pocket Images.

Author: mscannabiz.com
MScannaBIZ for all you Mississippi Cannabis News and Information.

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