Alabama Awards Two New Medical Cannabis Cultivation Licenses

The Alabama Medical Cannabis Commission (AMCC) on Thursday approved two new cannabis cultivation licenses, Alabama Daily News reports.

The new licenses were won by Pure by Sirmon Farms, LLC and Blackberry Farms, LLC but the licenses will not be issued for about two weeks, according to an Alabama Daily News report. Once they have received the licenses, the companies will be able to join the seven other licensed cultivators, the report said.

Alabama awarded its first medical cannabis licenses last year but the process was stymied by a series of lawsuits filed by companies whose applications had been denied. Plaintiffs claimed the licensing process was flawed and officials voted to pause the licensing process while addressing the issues. Ultimately, officials awarded the medical cannabis licenses for the third time last December but the process was contested by yet another lawsuit.

Some commissioners last week said they wanted to pursue resolving the lawsuits that are still affecting the program.

“I’m getting concerned about the extent of litigation that just seems to never end while there are people out there who are in desperate need of this medication. So I’m curious as to are we making any efforts whatsoever towards trying to figure out how to settle this?” — Commission member Loree Skelton, a health care lawyer, via Alabama Daily News

Officials discussed appointing a special master to resolve the licensing issues but commission member Sam Blakemore, a pharmacist, said the prospects of getting a court-appointed special master would be slim because such an agreement “would likely need 100% agreement of all the parties in those downstream categories of dispensaries and integrated licenses.”

Alabama lawmakers considered a proposal earlier this year that sought to end the program’s ongoing legal disputes by increasing the number of cannabis licenses in the state.

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Smoking Cannabis

CDC Data Shows Cannabis Use by U.S. High Schoolers Down Significantly in Last Decade

Cannabis use among U.S. high schoolers has declined significantly over the last 10 years, according to data from the Centers for Disease Control and Prevention (CDC) outlined in a recent NORML report.

The data was pulled from the CDC’s latest report, Youth Risk Behavior Survey: Data Summary & Trends Report 2013-2023, which highlighted “ten-year trends” of improvements in adolescent health and well-being. Specifically regarding cannabis, the report found that the percentage of high school students who identify as cannabis consumers fell 26% between 2013 and 2023.

Notably, the country’s first states to legalize adult-use cannabis — Colorado and Washington — each adopted their landmark legalization laws in 2014.

“Sensational claims that adult-use legalization laws are linked with greater marijuana use by teens are simply not backed by reliable data. These government findings ought to reassure lawmakers that cannabis access can be legally regulated in a manner that is safe, effective, and that does not inadvertently impact young people’s habits.” — NORML Deputy Director Paul Armentano, in a statement

The data also coincides with the latest National Survey on Drug Use and Health, which also identified a decline in cannabis use among adolescents. Specifically, the report found youth aged 12 to 17 who reported having tried cannabis fell 18% from 2014 to 2023, the report said.

Teenage cannabis use also declined in Canada in the years following its federal legalization policy, according to a 2020 survey.

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Trump Suggests He May Support Cannabis Reforms

Former President Donald Trump hinted during a Thursday press conference that he has grown more supportive of adult-use cannabis policies as the reforms continue to sweep the country, Marijuana Moment reports.

“As we legalize it, I start to agree a lot more because, you know, it’s being legalized all over the country,” Trump told reporters at Mar-o-Lago, his home in Palm Beach, Florida. The former president hinted at his apparent evolution on cannabis after reporters asked him about the Biden Administration’s plan to move cannabis from Schedule I to Schedule III under the Controlled Substances Act.

Trump also neglected to say whether he would support the adult-use cannabis amendment being considered by Florida voters this November, but said he would announce his position “fairly soon.”

“As we legalize it throughout the country — whether that’s a good thing or a bad thing — it’s awfully hard to have people all over the jails that are in jail right now for something that’s legal. So I think obviously there’s a lot of sentiment to doing that.” — Trump, to reporters, via Marijuana Moment

In 2018, while discussing the Colorado cannabis legalization experiment, then-President Trump was secretly recorded saying that he believed cannabis use causes people to “lose IQ points,” which is not true.

Trump is heading the Republican Party’s 2024 presidential ticket against current Vice President Kamala Harris, who recently reiterated that she believes nobody should be in jail for simple cannabis use or possession. Harris also recently tabbed as her VP running mate Minnesota Gov. Tim Walz, who received an A rating from NORML on cannabis policy issues.

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Cannabis Retailers: Boost Profit with This One Metric

For cannabis retailers, 2023 was a year of busy stores and flat revenue. According to a Dutchie Report, the increase in visits was offset by a decrease in average basket value as retailers responded to heavy competition with heavy discounts: the average discount was 28.5 percent per order, and about 65 percent of total orders processed were discounted.

As more markets come online and mature, competition will only increase. So how can retailers get to profitability and stay there?

Certainly, once Section 280E goes away with the upcoming reschedule, retailers will get to keep more of their hard earned cash. But that’s no reason not to try to optimize the things you can control. One example, suggested by Dutchie, is to use digital payment systems like theirs, as consumers using DutchiePay had a 27% increase in average basket value.

Another way to systematically improve profitability is by tracking retail metrics. This approach, part of what we call “profit-focused accounting,” boils down to accomplishing financial goals by breaking down revenue into non-financial drivers: essentially the behaviors you can control to improve profitability.

A few criteria for choosing non-financial drivers: they need to be consistently controlled and monitored through very clear metrics; and they need to be limited to a few metrics, so that the amount of data is manageable.

Basket size is an obvious choice: it’s the most important metric for a retailer. We’ll look at how to measure and increase basket size below.

Calculating and monitoring basket-size

A calculation of basket size starts with total sales per month: If you sell $100 (according to your income statement) and make ten transactions (according to your point of sale data), the basket size would be $10.

Basket size should be measured monthly – at least – and benchmarked across your industry. (Legacy markets like Oregon and Washington have basket sizes in the mid-to-high 30s, while emerging markets like Missouri and Maryland are at the upper range of $80-$90). By following this number regularly, you can look for seasonal trends.

Since basket size times the number of transactions per month equals revenue, if basket size comes down, there are high chances revenue is coming down with it.

As a retailer, you need to come up with a strategy around basket size. Ask yourself: “Is my basket size in line with my market” and, if it’s lower, “am I using a high volume strategy to be able to come up with the right profitability and revenue that I’m looking for?” Ultimately, you don’t want to sacrifice market share, but you don’t want to sacrifice profitability either – and that’s what retailers are inadvertently doing with their discounting.

Increasing basket size: Cross-selling and upselling

When monitoring basket size, the next questions to ask yourself are: “Where’s the right basket size that you’re comfortable with?” and “How do I build that without heavy discounting?”

When looking at how you’re going to increase your basket size, you want to look at two things: the number of items per basket, and the price per item. If we’re seeing that price per item come down, then we’re obviously seeing the size of those baskets come down.

Two ways to increase the basket size are cross-selling or upselling.

Cross selling is suggesting additional products from a different category. The Dutchie report suggests that pre-rolls, flour and edibles are growing categories, so you could train budtenders to interest customers in those products.

Upselling is suggesting a larger or more premium item in the customer’s original choice category, which also increases basket size.

Here’s a concrete example of how non-financial drivers can add to your bottom line: Simply train your sales staff to ask every customer if they want to add a pre-roll to their transaction – a $4 increase. If that question has just a 10% conversion rate, let’s look at what that does to your profit:

Let’s just say baskets for this particular retailer were 16,667 with an average basket size before we do this upselling strategy is $61.

If our budtenders manage to convert a sale on a $4 item, 10% of the time, the average basket size goes up to $61.60 – a minimal change, but over a month period, that adds $10,000 per month, $120,000 per year, and $600,000 over a five-year period – all without increasing number of transactions.

That $.60 increase seems miniscule, but it increases gross margin, so as long as you’re doing these things and doing them consistently, there’s huge potential.

Basket size and profitability

What’s the basket size you need to hit to be profitable? In cannabis, every penny matters. Forecasting revenue comes from looking at basket size along with customer retention, but you’re also going to want to forecast your overhead: people, marketing, your facility expenses.

Let’s look at two examples, using a retailer with healthy numbers.

Revenue

Basket size: $71

Daily transactions: 463

$1000 sales per square foot

Revenue: $12 million

Once taxes are subtracted (under 280E), that retailer is operating at a loss.

Boosting basket size and daily transactions

If we increase basket size from 71 to 81 and increase our average daily transactions from 463 to 507, now we’re at $15 million in revenue. Overhead might come up a little bit, but this is the required basket size to make a profit after 280E.

Once 280E goes away, the retailer in the first scenario would be slightly profitable, while in the second example the retailer would be making around 10-15% profit as a percentage of revenue.

These KPIs help you with visibility into the future because they help you build your forecast and set realistic financial targets. They may not tell the full story on their own, but they generate conversations to identify the right actions to take to increase sustainable profitability.

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Vice Presidential Nominee Tim Walz Has A Rating from NORML for Cannabis Policy

Democratic presidential nominee Vice President Kamala Harris on Tuesday tabbed Minnesota Gov. Tim Walz (D) as her running mate. Walz, 60, pushed for cannabis legalization in his home state and signed the reforms into law last year. 

Walz has earned an A rating from NORML after ordering state agencies to begin preparing for adult-use cannabis reforms in 2019 – sales began last August.  

During the bill signing, Walz called legalization “the right move for Minnesota.” Walz has publicly supported cannabis reforms since 2017. During his time in the House of Representatives, Walz co-sponsored the VA Medicinal Cannabis Research Act (2018).  

“We’ve known for too long that prohibiting the use of cannabis hasn’t worked. By legalizing adult-use cannabis, we’re expanding our economy, creating jobs, and regulating the industry to keep Minnesotans safe. Legalizing adult-use cannabis and expunging or resentencing cannabis convictions will strengthen communities.” — Walz, 5/30/23

Harris, a former prosecutor, has evolved on cannabis policy during her time as vice president. During a 4/20 2022 event, she called for a “change to our nation’s approach to marijuana.” 

“Marijuana is considered as dangerous as heroin and more dangerous than fentanyl,” she said during her remarks, “which is absurd, not to mention patently unfair.”

In a post on X on April 20 this year, timestamped at 4:20 pm, Harris posted a quote from President Joe Biden, “No one should be jailed just for using or possessing marijuana.” The vice president added, “Nobody should have to go to jail for smoking weed.” 

“We must continue to change our nation’s approach to marijuana while reforming the justice system so it finally lives up to its name,” she wrote. 

The Biden Administration in May announced plans to reschedule cannabis from a Schedule I to Schedule III drug. 

The Harris-Walz ticket is likely the most progressive major party presidential ticket on cannabis policy in history.   

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New Hampshire Gov. Signs Bills Expanding Medical Cannabis Access

New Hampshire Gov. Chris Sununu (R) has approved a pair of bills that expand medical cannabis access for patients in the state. The governor signed the legislation on July 26. 

One measure, SB 357, allows anyone “who is licensed to prescribe drugs to humans” and “possesses an active registration” from the Drug Enforcement Administration to prescribe controlled substances and “who is primarily responsible for the patient’s care related to his or her qualifying medical condition” to recommend patients to the state’s medical cannabis program.  

The other, HB 1278, allows health care providers to issue a medical cannabis recommendation to patients with any medical condition that may benefit from cannabis therapies, whether or not the condition is included on the state’s qualifying conditions list. The law allows providers to recommend cannabis for medical conditions for which “the potential benefits of using therapeutic cannabis would, in the provider’s clinical opinion, likely outweigh the potential health risks for the patient.” 

In a statement, NORML Deputy Director Paul Armentano noted that “Physicians already possess the discretion to prescribe any number of medications, like opioids, which pose far greater risks to health than marijuana.”  

“It is appropriate that health care providers possess the same freedom to make medical cannabis-related decisions as they do when choosing to authorize other therapeutic options for their patients.” — Armentano in a statement    

In April, Delaware enacted similar reforms, allowing healthcare providers to certify patients for the state’s medical cannabis program for any condition. California, Maine, and Virginia have similar policies.    

According to the most recent report, 2022, there are more than 13,000 registered medical cannabis patients in New Hampshire.  

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Lockhart, Texas Voters to Consider Cannabis Decriminalization Proposal in November

Voters in Lockhart, Texas are set to vote on a ballot measure that would decriminalize low-level cannabis possession in the city after the City Council on Tuesday agreed to put the proposition on November ballots, KVUE reports. During the meeting, counselors did consider breaking up the proposal on ballots into 13 separate propositions due to the complexity of the question, but that plan drew pushback from Mike Siegel, general counsel for Ground Game Texas, which led the campaign. 

“It’s disrespectful to the voters and also because it’s illegal. The city council actually doesn’t have the discretion to change the policy that the voters have put forward. So we’re asking them to follow the law, save city resources and do what’s right.” — Siegel, via KVUE 

Lockhart City Attorney Brad Bullock said he wasn’t trying to sabotage the effort but that the “simpler” language that would appear on ballots wasn’t sufficient to inform voters. Ultimately, the wording was reworked and will appear as one question. 

Lockhart voters will join those in Bastrop and Dallas on voting on cannabis decriminalization in November. Bastrop and Dallas officials certified their own petitions last month. 

Voters in Austin, Denton, Elgin, Killeen, and San Marcos have approved similar measures. In May, voters in Lubbock rejected a decriminalization referendum, as did San Antonio voters last year; however, San Antonio’s measure was tied to larger criminal justice reforms. Voters in Harker Heights also approved the reforms, but the city council ultimately repealed the initiative.  

Cannabis remains outlawed for any purpose under state law.   

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Animal Feed Officials Are Considering Hemp Seed for Chicken Feed

The Association of American Feed Control Officials (AAFCO) is set this week to consider a proposal that would allow chicken feed producers to use hemp seed for up to 20% of their product, Brownfield Ag News reports. The change will be discussed during the organization’s annual meeting this week and, if approved, could be a major boost to the industrial hemp industry.

Hemp seed was granted preliminary FDA approval as an ingredient in chicken feed in January, the report said.

“It’s only 20% hemp in with the feed, but this has been an ongoing investment I guess you could say. There’s a lot that goes into getting a food approved for animals and that will open up markets for farmers to start growing grain for animal food production.” — Rachel Berry, president of the Illinois Hemp Growers Association, via Brownfield Ag News

Notably, AAFCO and FDA recently announced that their Memorandum of Understanding covering animal feed ingredient recommendations will not be renewed this year after its October 1 expiration, AquaFeed.com reports. FDA will continue to honor the recommendations until then but, as the recommendations typically take about 30 days to process, AAFCO will stop accepting requests starting September 1.

In 2020, the Hemp Feed Coalition pushed for hemp to be allowed in chicken feed but the proposal floundered.

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Oregon Voters to Consider Ballot Proposal Allowing Cannabis Industry Workers to Unionize

Oregon voters will decide this November whether workers in the state’s struggling cannabis industry should be allowed to unionize, Willamette Week reports. The ballot initiative, Measure 119, was organized by the United Food & Commercial Workers (UFCW) labor union after state lawmakers this year considered but ultimately failed to adopt the reforms.

The legislation died in the House Business and Labor Committee — Rep. Paul Holvey (D), who chairs the committee, said that he let the bill die because the reforms would likely violate federal law.

UFCW disputed Holvey’s claim and spent $2.24 million on a signature-gathering campaign to put the issue to voters. The signatures were certified by the Secretary of State’s Office on August 1, the report said.

“Workers across every industry should have the freedom to unionize if they so choose. This ballot measure closes an age-old loophole that deprives that right to thousands of Oregon cannabis workers. Shady cannabis tycoons have taken advantage of an outdated law to strip workers’ rights that are guaranteed to nearly every other American.” — Dan Clay, UFCW Local 555 president, in a statement

UFCW also launched a recall campaign against Holvey, who survived the recall with 90% support but shortly afterward announced he would not seek reelection.

Oregon was among the first U.S. states to legalize adult-use cannabis and its cannabis industry initially struggled from an oversaturation of licenses, which led to oversupply issues. In March, lawmakers passed a bill to cap the number of cannabis licenses in the state in response to market oversaturation.

Industry sales declined to $955 million in 2023 from the state’s all-time high of $1.2 billion in 2021.

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Florida Billionaire Donates $20M to Candidates that Oppose Cannabis Legalization Effort

In an August 2 op-ed, Ken Griffin, the billionaire investor and CEO of Florida-based Citadel Hedge Fund, announced he donated $20 million in support of candidates that oppose the proposed adult-use cannabis constitutional amendment. 

In the op-ed, published by the Miami Herald, Griffin called the proposal “a terrible plan to create the nation’s most expansive and destructive marijuana laws.”      

“Passage of Amendment 3 would create a monopoly for large marijuana dispensaries and permit pot use in public and private areas throughout Florida. That will help no one other than special interests – and it will hurt us all, especially through more dangerous roads, a higher risk of addiction among our youth, and an increase in crime.” — Griffin, ‘Amendment 3, other misguided policies will harm FL’s comeback. Here’s how I’m fighting it,’ 8/2/24 

Further, Griffin writes that “No one wants the effects of widespread legalization of marijuana – skyrocketing crime, suffering among children, a decline in the quality of life in Florida’s vibrant neighborhoods – but Amendment 3 would make it inevitable.”

Griffin does not name the candidates he plans to support with the donation; however, Smart & Safe Florida, the campaign seeking to enact the reforms, had raised $66.475 million in cash and $129,000 in in-kind contributions as of July 19, according to state Division of Elections Data, and spent $53.963 million so far on the campaign.

The reforms are opposed by Republican Gov. Ron DeSantis who in June launched the Florida Freedom Fund to combat both the adult-use cannabis campaign and the ballot initiative on abortion access. In the fund’s first five weeks, it raised just $10,000; however, earlier this month a cohort of hemp businesses in the state donated $5 million to the Republican Party of Florida after the governor vetoed a bill to regulate hemp-derived intoxicating cannabinoids.    

According to a Marijuana Moment report, as of July 15, the Florida Freedom Fund had about $121,000 on hand, the majority of which came from POB Ventures, which has links to a medical cannabis worker training organization and a cadre of hemp businesses.    

A University of North Florida Public Opinion Research Lab (PORL) poll released last month found 64% of likely voters planned to vote in favor of the proposal. A poll published earlier in July found the same level of support. In Florida, constitutional amendments require 60% support to pass.     

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Arkansas Campaign Seeking to Expand Medical Cannabis Gets More Time to Collect Signatures

The Arkansas campaign to put a medical cannabis expansion question to voters in November has been given more time to collect additional signatures after advocates submitted more than 108,500 signatures, of which 85% were valid, but not enough total to get the issue on ballots, Arkansas Advocate reports. Under Arkansas law, ballot campaigns are allowed a cure period if the initial submitted signatures equal at least 75% of the overall required number of signatures and 75% of the required number from at least 50 counties.  

In a July 31 letter to the campaign, Arkansas Secretary of State John Thurston said organizers have 30 days to gather new signatures, which must be submitted by August 30. The campaign submitted at least 77,000 valid signatures – the required number of signatures is 80,704. 

In a statement to the Advocate, ballot question committee member Bill Paschall said organizers are “confident that Arkansans for Patient Access will meet and exceed” the signature threshold by the deadline. 

The proposed constitutional amendment aims to improve patient access to medical cannabis by allowing physician assistants, nurse practitioners, and pharmacists to certify patients for medical cannabis cards, and allow providers to conduct patient assessments via telemedicine. Healthcare professionals would also be allowed to qualify patients based on medical need, rather than rely on the 18 qualifying conditions outlined by the state.  

Arkansas voters approved the medical cannabis ballot question in 2016, but the first products did not reach patients until 2019. 

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Fentanyl-Laced Cannabis Products Seized at Connecticut Smoke Shop Accused of Illegal Sales

A 21-year-old was arrested in Norwalk, Connecitcut for allegedly selling cannabis products without a license, some of which tested positive for fentanyl, according to the Norwalk Police Department. The search was part of the department’s investigations into smoke shops selling cannabis without a license.  

Ali Mahmood Ahmed Abdullah Ghaleb is charged with possession with intent to sell more than 1 kilogram of cannabis; possession greater than 1.5, 5, and 8 ounces of cannabis; possession of a cannabis plant less than 50 ounces; sale of 1 kilogram or more of cannabis; sale of a narcotic substance; possession with intent to sell narcotics; and use of drug paraphernalia. 

Police said “many” of the products seized during the search tested positive for fentanyl. The agency said it had seized 3.5 pounds of cannabis flower and gummies, and the gummies contained 50 milligrams of THC per piece while the state’s legal limit is 1 milligram per piece. The product packaging was also “misleading,” police said, adding that officers had seized $1,983 in cash.

The warrant was the second executed at the ZaZa Smoke Shop by the Norwalk Police Special Services Division along with the State of Connecticut Consumer Protection Drug Control Division. 

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New York’s Cannabis Crackdown Continues with 1,000+ Unlicensed Companies Closed Since April

New York Gov. Kathy Hochul (D) announced last week alongside New York City Mayor Eric Adams that since the governor expanded the state’s cannabis enforcement capabilities, city and state task forces have shuttered more than 1,000 combined illegal cannabis operators.

The governor ordered an audit of the cannabis industry roll-out in March after lawsuits wrought months upon months of licensing delays. Following the audit, the governor signed legislation to give the state’s Office of Cannabis Management (OCM) and local municipalities new authority to shut down the unlicensed cannabis operations that had proliferated during the botched roll-out.

“Earlier this year, I enacted new enforcement powers to quickly and permanently close the thousands of illegal cannabis retailers across New York selling potentially dangerous products — many of which are marketed to children and teens — and siphoning sales from hard-working, licensed store owners. I am pleased to join Mayor Adams and other officials to celebrate a milestone and recognize the enforcement teams who shut down more than 1,000 unlicensed stores statewide, bringing us closer to our goal of building the strongest, most equitable cannabis industry in the nation.” — Hochul, in a press release

Officials noted in a press release that despite the industry’s troubles, OCM has opened 152 legal cannabis dispensaries so far and this year awarded 730 additional adult-use licenses. Meanwhile, New York City has seen a 72% increase in legal cannabis sales in the 10 weeks since the enforcement actions began, according to the release.

 

 

 

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Ohio Adult-Use Cannabis Sales to Launch This Week

Ohio cannabis regulators said last week they will issue the state’s first dual-use cannabis retail licenses on Tuesday, enabling the state’s first legal adult-use cannabis sales, the Columbus Dispatch report.

State officials released initial draft regulations in January and issued the first adult-use licenses for cultivation and processing last month. Additionally, many of the state’s medical cannabis dispensaries have already received provisional dual-use licenses allowing them to prepare to serve the adult-use market. The incoming dual-use licenses will authorize the state’s first adult-use cannabis sales since state voters approved the adult-use reforms in 2023.

“We are stepping into a new future for Ohio where citizens will have access to safe products and communities will feel the benefits of this growing industry through tax revenue and job opportunities.” — Tom Haren, spokesman for the Ohio Cannabis Coalition, via the Columbus Dispatch

Regulators have restricted how dispensaries will be able to celebrate the launch of adult-use sales this week: licensees cannot host live music or outdoor celebrations, although ribbon cuttings and celebratory décor will be allowed inside the shops themselves. Retailers can also display empty product packaging and provide complimentary non-infused, non-alcoholic beverages.

The following Ohio cannabis companies are planning to launch their adult-use cannabis sales after receiving their dual-use license this week, the report said:

  • Sunnyside in Cincinnati, Chillicothe, Marion, and Wintersville
  • Ohio Cannabis Company in Canton, Piqua and Harpster
  • The Citizen by Klutch in Lorain and Canton
  • The Botanist in Columbus, Akron, Cleveland, Canton, and Wickliffe
  • Amplify in Columbus, Bedford, and Cleveland Heights
  • Zen Leaf in Cincinnati, Dayton, Canton, and Bowling Green
  • Supergood in Ravenna
  • Bloom in Columbus and Painesville Township
  • Uplift in Milford and Mount Orab
  • Nar Reserve in Columbus
  • Curaleaf in Newark
  • Terrasana in Columbus, Fremont, Springfield, and Garfield Heights
  • Ayr in Dayton, Goshen, and Woodmere
  • gLeaf in Warren
  • Columbia Care in Dayton, Logan, Marietta, and Monroe
  • Nectar in Cincinnati, Euclid, and Bowling Green
  • Trulieve in Columbus, Westerville, and Beavercreek
  • Theory Wellness in Sherwood
  • The Landing in Columbus, Cincinnati, Cleveland, Huron, and Monroe

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Missouri Gov. Signs Executive Order to Ban Intoxicating Hemp Product Sales

Missouri Gov. Mike Parson (R) on Thursday signed an executive order to ban the sale of intoxicating, hemp-infused products unless they come from an “approved source,” according to a FOX2 report.

The order bans hemp-derived products containing delta-8 and delta-10 THC, hexahydrocannabinol (HHC), tetrahydrocannabinol (THC-O), tetrahydrocannabiphoral (THCP), and tetrahydrocannabivarin (THCV).

The governor said the state has seen a 600% increase in the number of young children who have experienced cannabis poisoning, and that the executive order targets hemp products that are currently distributed “without regulation.”

“Unlike the marijuana products effectively regulated by our division of cannabis regulation, these hemp-derived, psychoactive products are not required to undergo a robust screening to help ensure consumer health and safety.” — Department of Health and Senior Services Director Paula Nickelson, via FOX2

The governor confirmed that adult-use cannabis products — which are legal in Missouri when sourced from a state-licensed cannabis operator — will be unaffected by the executive order, which will take effect on September 1.

“Protecting Missourians, especially the most vulnerable, our children, has been our guiding principle since the very beginning and remains so today,” Parson said in the report.

The Missouri Hemp Trade Association issued a statement opposing the ban shortly after the governor’s announcement: “Here in Missouri, the Missouri Hemp Trade Association continues to support the lawful product and sale of all federally authorized and approved hemp derived products. We estimate there are nearly 10,000 retail points of sale for legal hemp products in Missouri, supporting tens of thousands of jobs.”

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Cherokee Cannabis Store Opening to All Adults on Sep. 7

The Eastern Band of Cherokee Indians announced the tribe’s cannabis shop, the Great Smoky Cannabis Company, will open its doors to any adult aged 21 or older starting September 7. The shop, located in the Quolla Boundary, is the first and only source of legal cannabis in North Carolina.

Kara Howard of Qualla Enterprises, the Cherokee subsidiary that operates the Great Smoky Cannabis Company, told the Charlotte Observer that the shop will have enough product to handle the increased demand from opening to the general public. The shop — a renovated former bingo hall in the Great Smoky Mountains —

When the shop launched on April 20 this year, sales were limited to people with a medical cannabis card issued by the tribe’s Cannabis Control Board. Later, the business opened its doors to any adult member of the tribe or another federally recognized tribe. Voters in the Qualla Boundary passed the adult-use reforms in September 2023 and the measure was formally adopted by tribal leaders in June.

A Qualla Enterprises representative previously estimated the regional adult-use market could reach about 80,000 pounds of cannabis.

Lawmakers in the North Carolina Senate, meanwhile, passed a medical cannabis legalization bill in June but the proposal faced opposition from the GOP-controlled House, and the session ended on Wednesday without further progress.

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Poll: 64% of Likely Voters Back Florida Adult-Use Cannabis Amendment

The proposed constitutional amendment to legalize adult-use cannabis in Florida appears to be on track with 64% of likely voters in a recent University of North Florida Public Opinion Research Lab (PORL) poll saying they plan to support the reforms at the ballot box in November. 

The poll found 31% opposed and 5% unsure or refusing to answer the question. 

Support includes 79% of registered Democrats polled, along with 50% of Republicans and 63% of independents. In Florida, constitutional amendments require 60% support to pass.  

A poll published earlier in July found the same level of support. 

In a statement, PORL Faculty Director and professor of political science Dr. Michael Binder noted that it remains unclear “how much money will be injected into the campaign against this amendment.”  

“If the opposing organizations ramp up their campaigns, we may see this number come down, depending how much cash is spent in opposition.” — Binder in a press release 

According to state Division of Elections Data, the pro-legalization campaign, Smart & Safe Florida, has outraised the opposition, raising so far $66.475 million in cash and $129,000 in in-kind donations, while the Florida Freedom Fund has about $121,000 on hand, the majority coming from POB Ventures, which has links to a medical cannabis worker training organization and a cadre of hemp businesses.

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Voters in Bastrop, Texas to Vote on Cannabis Decriminalization Proposal in November; Similar Petition ‘On Track’ in Lockhart

Voters in Bastrop, Texas will consider a cannabis decriminalization measure in November, KXAN reports. City officials last week certified the petition, which would make cannabis the lowest priority for Bastrop Police.

The campaign was led by Desiree Venable, who is also the Democratic candidate for Texas House District 17.

“The criminalization of marijuana undermines our individual freedoms and limits career opportunities. The decriminalization of marijuana is a crucial step toward the criminal justice reform we desperately need and I’m happy to be part of this progress.” — Venable, in a statement, via KXAN 

Voters in Lockhart, Texas may also be considering a similar proposal in November. While city officials have not yet confirmed the signatures, officials with Ground Game Texas, which is leading the effort along with Mano Amiga Responsible Implementation (MARI), told KXAN that the city “is on track to put the proposition on the November ballot.”

In a statement, Elle Cross, MARI’s campaign director, said the “policy process is as democratic as it gets” and that advocates are “hopeful that this campaign will demonstrate to our community the power we hold as a collective and the future we can build alongside one another.”     

“While this campaign is working to end needless arrests for cannabis possession, keep community members free from the harmful collateral consequences of an arrest and save scarce city resources, we are also working to build community power in Lockhart,” Cross said. 

Dallas officials last week finalized the petition to put a cannabis decriminalization ordinance to voters in November.   

Voters in Austin, Denton, Elgin, Killeen, and San Marcos have approved similar measures. In May, voters in Lubbock rejected a decriminalization referendum, as did San Antonio voters last year; however, San Antonio’s measure was tied to larger criminal justice reforms. Voters in Harker Heights also approved the reforms, but the city council ultimately repealed the initiative.  

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New Jersey Recalls Cannabis Product Due to Insects, Human Hair

The New Jersey Cannabis Regulatory Commission (CRC) on Monday issued a recall of flower sold by Green Medicine NJ after lab-tested samples were found to include insects and human hair. The testing followed a complaint filed with the agency on July 18.  

The recall includes products with the tradename Green Joy. The laboratory tested 15 samples from a single dispensary and discovered that 12 of the packages contained insects and one contained “what appeared to be human hair.” The products were sold as loose flower and pre-rolls in jars and boxes of various sizes.  

In a press release, the CRC indicated that “random sampling and testing at cultivation and wholesale facilities associated with Green Medicine is ongoing.” 

According to the CRC website, the recall appears to be the first issued by the agency this year. 

Green Medicine obtained its adult-use license last April, according to a Heady NJ report, which notes that the company has held a medical cannabis cultivation license in the state since the 2019-2020 licensing round. The company is based in Colorado and had trouble obtaining a cannabis license from the local government, which led to the company filing a lawsuit, according to a My Central Jersey report. They were ultimately granted their medical cannabis license in October 2021. 

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First-of-Its-Kind Cannabis Company Taking Root in Mississippi

Cypress Brake Cannabis Company and Delta One Brands are proud to announce the launch of its premium cannabis brand and cultivation facility in the heart of the Mississippi Delta. The company is on a mission to bring artisanal, award-winning cannabis products to the burgeoning medical cannabis industry of Mississippi.

“We’re a team of visionaries, dreamers, and doers, passionately committed to shaping the future of regenerative agriculture across food and all-natural medicine,” said Matt Beaman, Chief Marketing Officer of Cypress Brake. “Thanks to our partnership with Angela TenBroech of Delta Grows, we are excited to build a first-of-its-kind cannabis company that not only produces exceptional cannabis but also fresh pesticide-free produce for the local community.”

Cypress Brake is pioneering a revolutionary approach called Cann-Aquatic Regenerative Agriculture (CARA). This closed-loop system combines cannabis cultivation with aquaponics to produce nutrient-dense food with near-zero environmental impact. Fresh lettuce, celery, greens, herbs, tomatoes, and other produce will be grown adjacent to premium cannabis flower, helping to address food insecurity while conserving water and energy.

CARA’s novel energy-saving system harnesses excess heat generated from the cultivation process to create a controlled environment for greenhouse agriculture that enables food production every month of the year. That means 12 months a year of fresh produce for the food insecure of the Mississippi Delta.

“It’s truly a dream come true to be able to produce all-natural medicine and freshly-grown produce in the heart of the Delta, a place with such a rich agricultural history and warm welcoming southern charm,” said Marcus Holcomb, award-winning Master Cultivator at Cypress Brake. “Our passion has always been to cultivate the finest cannabis cultivars and work with the cannabis plant to unlock its boundless healing potential. Adding in the food and energy elements excites our team and everyone we talk to about the project.”

With decades of combined cannabis industry experience, the Cypress Brake team brings a wealth of expertise in cultivation, extraction, marketing, and retail. Their state-of-the-art facility leverages cutting-edge technology like AI-enabled climate management and custom LED arrays to produce premium cannabis flower and chemical-free solventless extracts.

Cypress Brake is licensed for medical cannabis cultivation by the Mississippi State Department of Health. The company’s brand identity pays homage to the rich cultural heritage of the Delta region with packaging inspired by the beautiful natural wonders of Mississippi’s magical cypress brakes and illustrations drawn by the famous Steven Noble, who has designed some of the most iconic brands of our time including, Coors, Mercedes Benz, American Express, &, more recently, Kraken Rum and Espolon Tequila.

For more information or for those looking to invest in the future of sustainable cannabis and agriculture, we invite you to explore opportunities to get involved with Cypress Brake at www.cypressbrake.co.

About Cypress Brake Cannabis Company

Cypress Brake Cannabis Company is a vertically integrated cannabis company focused on cultivating premium artisanal cannabis and producing nutrient-rich food through sustainable farming methods in the Mississippi Delta region.

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Philippine Lawmakers Move to Legalize Medical Cannabis

The Philippines House of Representatives passed a bill on Tuesday to legalize medical cannabis but the proposal faces an uncertain future in the Senate, the Philippine Daily Inquirer reports. The proposal was passed in the House with 177 lawmakers in support, nine in opposition, and nine abstaining from the vote.

If passed, the bill would legalize medical cannabis access for patients with specific qualifying conditions and only

One of the bill’s co-sponsors, Surigao del Norte Rep. Robert Ace Barbers, said the bill is intended only to benefit patients; the chair of the House Committee on Dangerous Drugs, meanwhile, said the medical cannabis proposal would not be a stepping stone to adult-use legalization — and that cannabis would remain listed as a federally prohibited substance.

“By no means is this bill a gateway to the recreational use of cannabis.” — The committee chair, via the Phillippine Daily Inquirer

The proposal is the second medical cannabis legalization bill passed by the Philippines House but the last proposal — considered by lawmakers in 2019 — ultimately failed in the Senate after then-president Rodrigo Duterte changed his mind on the issue. The Senate is currently considering the issue once more but the reforms are opposed by the Philippine Medical Association. Additionally, key members of the Senate including the president’s sister Imee Marcos have voiced opposition to the proposal, according to a Bloomberg report.

If approved, the Philippines would be the first country in Southeast Asia to pass a medical cannabis legalization bill.

Thailand was the first country in the region to decriminalize cannabis but it stopped short of setting or adopting regulations for the industry.

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Virginia Fines Hemp Retailers $10.8M for Selling Restricted Products

Virginia officials last year issued fines to more than 300 hemp product retailers collectively totaling nearly $10.8 million for the sale of restricted products, Axios reports.

The companies were fined for selling intoxicating, delta-8 THC products that are now banned under a 2023 law that caps THC levels in consumable hemp products at 2 milligrams, requires hemp product retailers to register with the state, and requires edible hemp products to be lab-tested and clearly labeled. Another provision of the bill requires topical products containing hemp-derived cannabinoids to include bittering products to dissuade people from consuming them to get high.

Per data from the Virginia Department of Agriculture and Consumer Services’ hemp enforcement team, 346 out of 424 hemp product retailers (82%) inspected by officials were violating the new state law, with a collective total of 17,715 violations. Officials also said they assessed $10,772,250 in civil penalties and have so far collected $433,262 in penalties.

THC-rich cannabis products have been legal to consume and possess in Virginia since 2021 but there is not a regulated market for adults looking to purchase safe, intoxicating cannabis products. Lawmakers passed a proposal this year that would have established a legal and regulated adult-use cannabis marketplace but Republican Gov. Glenn Youngkin vetoed the proposal in March.

 

 

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Headset: 9 out of 10 Comments to DEA on Cannabis Reform Back Rescheduling or Descheduling

An overwhelming number of comments submitted to the Drug Enforcement Administration (DEA) on the proposal to reschedule cannabis under the Controlled Substances Act favored the reforms or urged the government to deschedule cannabis entirely, according to an analysis by cannabis intelligence firm Headset. The analysis found 57% of comments submitted during the public comment period favored descheduling cannabis entirely, 35% supported rescheduling cannabis, and just 8% opposed the reforms, favoring keeping cannabis as a Schedule I drug. 

According to the data, most comments were submitted on the very last day of the period. Of those, 5,093 favored either rescheduling or descheduling, with just 169 comments opposed. Not during a single day of the comment period were there more comments opposed to the reforms than in support. On July 15, there were 497 opposition comments submitted and 539 in support – marking the thinnest daily margin during the period.

“These numbers paint a clear picture: over 9 out of 10 individuals who took the time to comment believe that cannabis should not remain a Schedule I substance. Moreover, the majority of commenters went beyond the proposed rescheduling to Schedule III, arguing for complete removal from the controlled substances list. This overwhelming show of public support, equivalent to the unanimous voice of an entire state capital, sends a powerful message to policymakers. It suggests that not only is there broad backing for the proposed rescheduling, but there’s also a significant push for even more comprehensive reform.” — Headset, “Unprecedented Support for Cannabis Scheduling Reform Revealed by Data from the DEA Comment Period,” 7/23/24

Headset notes that many of the comments opposing the reforms appeared to be form letters provided by anti-cannabis groups, such as Smart Approaches to Marijuana (SAM), which on July 15 issued a call to action for its supporters and provided the form letter – the group was still bested by pro-reform commentors on the day.

In all more than 42,000 comments were submitted during the comment period.

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Federal Judge Rules Iowa Hemp Law Constitutional

A federal judge last week denied imposing an injunction against the Iowa law regulating consumable hemp products and imposing THC caps on the products, The Gazette reports. Judge Stephanie Rose of the Southern District of Iowa said in her rulings that the companies behind the injunction failed to prove that the law, which took effect July 17, violates the U.S. Constitution.  

Rose had previously expressed concerns about the vague definition of “serving” in the law but last week’s decisions indicated that the state had cleared up the vagueness.

“Now that the Final Rules have been promulgated and are in effect, there is no longer a viable argument that ‘serving’ as set forth in the Hemp Amendments is an unconstitutionally vague term.” — Rose, in the ruling, via The Gazette 

Rose also ruled against the plaintiffs – a group of hemp companies – on their claim that the state Health and Human Services department can arbitrarily enforce the new standards and reject some products that should be allowed under the law. The judge ruled that even if the law is being improperly applied, the application doesn’t make the law unconstitutionally vague. 

“The crux of the issue is not whether the law can be arbitrarily enforced,” Rose wrote, “but whether the language is sufficiently clear so as not to invite arbitrary enforcement.” 

Additionally, Rose ruled against the businesses’ arguments that six weeks was not enough time to comply with the law, writing that it was “essentially a claim of what would be better for their businesses.”   

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