**Summary:** - **New York Senators Call For Investigation Of State’s Marijuana Social Equity Fund After Exposé Of ‘Predatory Deals’** - Two state senators, Liz Krueger (D-Manhattan) and Gustavo Rivera (D-The Bronx), have called for an investigation into New York's marijuana social equity fund following an exposé by THE CITY. - The investigation revealed high interest rates and start-up costs that could lead to defaults, with officials warning the governor's office about these issues for months. - The senators described the fund's practices as "unscrupulous" and called for action to redress these loan agreements. - The fund, announced by Governor Kathy Hochul (D) in 2022, aimed to finance the leasing and building out of 150 dispensaries across the state, but has faced challenges in attracting investors and ensuring fair practices. - **Congressional Committee Strips Marijuana Banking Protections From Key Spending Bill** - A congressional committee has removed marijuana banking protections from a key spending bill, reversing a previous decision to include them. - The move comes despite bipartisan support for marijuana banking reform and the passage of a standalone bill in the House of Representatives in 2021. - Marijuana businesses currently face challenges in accessing banking services due to federal prohibition, and the removal of these protections could hinder industry growth and public safety. - **Other Notable Mentions:** - The WNBA has removed marijuana from its list of banned substances and set rules for player endorsements of hemp CBD products. - A survey found that 67% of Americans consider marijuana to be less cool than math and country music, but cooler than guns or cryptocurrency. - Politicians and major brands celebrated cannabis culture on 4/20, with some advocating for marijuana reform and others launching cannabis-related products. - Woody Harrelson and Bill Maher complained about high marijuana taxes while smoking joints at the dispensary they own together. - The WNBA has offered to end marijuana testing for women's basketball players as part of a reported deal with the union. - Federal labor decisions have inspired more Missouri marijuana workers to seek unionization, with some winning union votes after federal officials rejected companies' arguments on blocking ballots. - Target is launching hemp THC drink sales in three of the U.S.'s most populous states and has expanded its involvement in the hemp THC drinks market with 72 new licenses in Minnesota. - Government data from Canada shows that marijuana sales are rising while alcohol sales are declining as consumer preferences evolve.

**Summary of "How Private Equity Trumped Social Equity in State Cannabis Deal"** • **Article Overview**: The article, published in The New York Times, explores how private equity firms have exploited loopholes in state cannabis regulations to gain control of the industry, often at the expense of social equity applicants and small businesses. • **Main Thesis**: The author argues that the influx of private equity capital into the cannabis industry has led to a consolidation of power, undermining the social equity goals of many states' cannabis legalization efforts. • **Key Example - Illinois**: The article focuses on Illinois, where the state's social equity program aimed to provide licensing priority to individuals disproportionately affected by the war on drugs. However, private equity firms have found ways to circumvent these rules, often by partnering with qualifying individuals on paper only. • **Private Equity Tactics**: - **Partnering with Social Equity Applicants**: Private equity firms often partner with social equity applicants, providing capital and management expertise in exchange for a majority stake in the business. - **Buying Out Existing Licensees**: Some private equity firms have also bought out existing licensees, including those initially awarded to social equity applicants. • **Impact on Social Equity Applicants**: - **Displacement**: Many social equity applicants have been displaced from the industry, as private equity-backed companies outbid them on licensing applications and drive up rents in cannabis-friendly real estate. - **Lack of Capital and Expertise**: Social equity applicants often struggle to compete with the deep pockets and industry know-how of private equity firms. • **State Response**: Some states, like Illinois, have attempted to address these issues by implementing stricter rules on private equity investment. However, the article notes that these efforts have had limited success. • **Industry Concerns**: Industry insiders express concern that the dominance of private equity firms could lead to higher prices for consumers, as well as a lack of diversity and innovation in the industry. • **Author's Insight**: The author suggests that states should consider stricter regulations on private equity investment, such as limiting the amount of capital they can inject into cannabis businesses or requiring them to maintain a certain level of local ownership. • **Context**: This article was saved to understand the dynamics of the cannabis industry, the challenges of implementing social equity programs, and the role of private equity in shaping the industry's future. It also provides insights into the potential impact of private equity investment on consumers and the broader industry.