A Senate committee on Wednesday advanced legislation that would prevent federal agencies from rejecting job applicants solely due to past marijuana use.

According to Law360, the Senate Homeland Security and Governmental Affairs Committee voted 9-5 to move forward the Dismantling Outdated Obstacles and Barriers to Individual Employment (DOOBIE) Act without debate or discussion.

“The federal government must adapt its hiring practices to reflect the evolving legal and social landscape of our nation,” Sen. Gary Peters, the bill’s author, said in a statement.

The Michigan Democrat added, “My bill takes a crucial step by aligning federal policy with existing agency guidance, ensuring that past marijuana use alone doesn’t automatically disqualify talented individuals from public service.”

The DOOBIE Act says that federal agencies “may not base a suitability determination with respect to an individual solely on the past use of marijuana by the individual.” It would also prevent past marijuana use from being the sole factor in denying security clearances.

Additionally, the bill would require the Office of Personnel Management and Office of the Director of National Intelligence to issue regulations consistent with the policy.

The bill comes as more than half of U.S. states have legalized marijuana for medical or recreational use, creating disconnects between state laws and federal employment practices.

The legislation builds on a 2021 memo issued by Director of National Intelligence Avril Haines, which said that past marijuana use should no longer disqualify job candidates or prevent security clearance authorization. The DOOBIE Act would codify that stance into law.

A companion bill in the House of Representatives, known as the Cannabis Users’ Restoration of Eligibility (CURE) Act, has for the most part languished after being favorably reported out of the House Oversight Committee last September by a vote of 30-14.

Several states have already taken similar steps in the meantime. In Michigan, Gov. Gretchen Whitmer signed legislation last year prohibiting most public employees from being required to undergo pre-employment marijuana testing, with exceptions for certain “safety-sensitive” positions.

Other states with similar laws on the books:

• California
• Connecticut
• Minnesota
• Montana
• Nevada
• New York
• New Jersey
• Rhode Island
• Washington
• Washington D.C.

Still, when it comes to the DOOBIE Act, similar amendments and legislation have faced opposition in the past, particularly from some Republican senators. The bill would need to pass both chambers of Congress and receive support from the White House Office of Personnel Management to become effective policy.

The legislation now moves to the full Senate for consideration, where it’s expected to see debate.

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This story was republished with permission from Crain’s Detroit.

Despite increased regulator crackdowns and a new competing market in Ohio, Michigan’s marijuana market continues to reach new heights.

The regulated market set another new sales record in August with the industry selling more than $295.4 million worth of marijuana, up nearly $7 million from the previous monthly sales record in March. 

The state’s legal industry is now on track to sell more than $3.3 billion in weed in 2024, up from last year’s record of $3.06 billion. 

California, with nearly 30 million more residents than Michigan, is the only state with larger sales figures, averaging about $347 million in marijuana sales monthly.

For context, California’s market sold about $8.90 on marijuana on a per capita basis in August, where Michigan’s sold $29.50 on a per capita basis. Assuming the estimated 26.86% of Michigan adults that use marijuana shop in the legal market, that would mean each consumer bought about $109.65 worth of marijuana in August. Where in California, roughly 9.35 million adult weed consumers spent on average $37.11 each during August.

Michigan’s sales output also shows the strength of its market, as legal recreational sales began on Aug. 6 in neighboring Ohio.

Ohio sold $44 million in marijuana in August after its recreational market went live the first week of the month, albeit with far fewer dispensaries than Michigan. Ohio has just 15% of the Michigan total of legal recreational marijuana retailers.

Insulating the Michigan legal market are all-time low prices. 

The average price for an ounce of marijuana flower in August was $80.14, up from the lowest price on record $79.70 in July, according to data from the Michigan Cannabis Regulatory Agency.

Prices have fallen since legalization in 2019. The average price for an ounce of flower was $116.84 in August 2022 and more than $400 in August 2020.

The price decline this year could be caused by a variety of reasons, including product oversupply, pricing compression from “Croptober” preparations and a continued supply of illicit market products in the state’s regulated market.

Outdoor growers are also preparing for “Croptober” — the annual harvest in October of plants grown in outdoor farms. That product, which typically is used in vapes, gummies and edibles, floods the market by late October through the end of the year, though some of the outdoor product is sold as flower.

However, the state has ramped up enforcement efforts, targeting legal market players importing products from out-of-state in recent months.

In August, the CRA issued a formal complaint against West Michigan grower HiCloud LLC after its owner was arrested on I-96 near Lansing by the Michigan State Police with 43.5 pounds of marijuana in a rented truck. That product was not tagged in the state’s tracking system, potentially meaning it was grown illegally. Investigators also found large batches of marijuana at its facility not cataloged in the system.

Also in August, the state cited Chesaning-based processor One Love Labs for allegedly importing more than 110 pounds of concentrated THC from Oregon.

It is against federal law to ship hemp products containing more than 0.3% THC across state lines and against Michigan regulations to process or sell products containing more than 0.3% THC that are derived from another state. The product tested for having 86.49% THC.

A month earlier, the CRA alleged Mount Morris processor Sky Labs purchased 130,000 grams — nearly 287 pounds — of THCa isolate, which is a heavily concentrated powder derived from hemp that when heated can be converted into a form of THC comparable to the psychoactive ingredient found in marijuana, from out of state.

But the state’s targeting hasn’t restricted supply enough to raise prices, and sales continue to rise.

After the markets closed on Wednesday, AYR Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF) announced that David Goubert was stepping down as President and Chief Executive Officer. Goubert served as President from October 12, 2022 and Chief Executive Officer from February 13, 2023.

The Board told investors it has approved the appointment of Steven M. Cohen as Interim Chief Executive Officer effective immediately. Cohen previously served as an outside legal advisor to the company but otherwise has zero cannabis experience. It’s worth noting that Goubert also had no cannabis experience before becoming the company’s CEO in October 2022 when he replaced founder Jonathan Sandelman. The Board said in a statement that it will embark on a search for a permanent CEO in due course.

The move was met with surprise on social media as many comments questioned what had happened for such a sudden move. Goubert was seen as a CEO who had made positive changes to the company in a relatively short period. It’s considered highly unusual to issue a late-night press release with no succession plan causing speculation about what prompted the hasty exit.

Recent earnings

The company’s recent earnings announcement provided no clues. Ayr Wellness reported its second-quarter earnings in August with revenue dipping slightly. The company had managed to get its expenses down but net losses grew to $38 million in the quarter versus last year’s net loss of $29 million. The company blamed the increase in net losses on higher income taxes and an increase in interest expense due to the terms of the debt extension and new debts.

At the time, Goubert said the company was positioned to return to growth in the second half of 2024. The company was already benefiting from Ohio’s strong launch for adult-use sales and is poised to gain if Florida and Pennsylvania legalize adult-use cannabis.

No cannabis for Cohen

The interim CEO, Cohen has no experience in cannabis. He is the founding member of Blue Raven LLP, a legal advisory firm focused on providing strategic advice to businesses, corporate boards and executives as well as providing outside General Counsel services.  Before forming Blue Raven LLP, Cohen was General Counsel and Chief Administrative Officer for MacAndrews & Forbes Inc.

According to his online biography, he represented numerous individuals and corporations in connection with investigations and prosecutions conducted by the U.S. Department of Justice, the U.S. Securities and Exchange Commission, the New York State Attorney General, the National Association of Securities Dealers, the New York Stock Exchange, and the Manhattan District Attorney’s Office. His wide-ranging civil practice routinely included civil litigation involving claims against officers and directors of publicly traded entities.

He also spearheaded the successful effort to gain the release of two men wrongfully convicted of the 1990 Palladium nightclub murder. In 2011 Cohen served as Secretary to New York Governor Andrew M. Cuomo.