MJBizMag March 2023 - 27

INDUSTRY DEVELOPMENTS
Utah
As of 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, president of
The Flower Shop, which operates dispensaries near the Idaho border and in Ogden.
Virginia
Legislators advanced two marijuana bills, although they face an upward climb in a state led by
Gov. Glenn Youngkin, who appears to be lukewarm about recreational sales.
One bill would allow medical marijuana dispensaries to sell adult-use products on Jan. 1, 2024,
though taxation and social equity provisions could derail a consensus.
The other bill would allow cannabis operators to deduct certain taxes prohibited under Section 280E
of the U.S tax code.
That measure would essentially decouple state operators from the federal tax code, a move
underway in several other states, including New Jersey, New York and Pennsylvania.
Efforts to establish recreational sales in Virginia have stalled for nearly two years since then-Gov.
Ralph Northam signed legislation legalizing an adult-use market that could reach $1.4 billion, according
to MJBizDaily projections.
Washington state
Justin Costello, a former CEO of Seattle-based GRN Funds, pleaded guilty to securities fraud after
posing as a billionaire and war veteran to dupe investors into funding his cannabis-related business
schemes.
Prosecutors will recommend a sentence of 10 years in prison, with Costello prevented from asking
for less time.
Costello also agreed to pay at least $35 million to victims of his crimes, which included stock pumpand-dumps
and a fake bank. The U.S. Securities and Exchange Commission still has a pending civil
lawsuit against Costello.
Wisconsin
A top legislator is pumping the brakes on the governor's plans to legalize both medical and
recreational marijuana in the state, claiming legislators are still in the early stages of discussing the
possibility of legalizing MMJ.
Assembly Speaker Robin Vos told the Milwaukee Journal Sentinel that if the state budget proposed
by Democratic Gov. Tony Evers includes adult-use legalization, a medical program might not get the
support it needs from the Wisconsin Assembly and Senate.
Britt Cudaback, the governor's spokesperson, said Evers will not change his budget.
Note: Entries sourced from MJBizDaily and other international, national and local news outlets. These developments
occurred before this magazine's publication deadline, so some situations might have changed.
mjbizdaily.com | March 2023 27

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MJBizMag March 2023

Table of Contents for the Digital Edition of MJBizMag March 2023