WNBA All-Star Detained in Russia Over Cannabis Vape Cartridges

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WNBA All-Star Brittney Griner is being detained in Russia after being arrested last month in Moscow for possessing vape cartridges containing cannabis oil, the Associated Press reports. Griner plays for the Phoenix Mercury and has played for Russia for the last seven years during the winter offseason, earning $1 million per season, which is more than four times her WNBA salary, the report says.

The vape cartridges were found during a search of her luggage at customs.

Griner’s agent, Lindsay Kagawa Colas, said that she and her team are “aware of the situation…and are in close contact with her, her legal representation in Russia, her family, her teams, and the WNBA and NBA.”

“As this is an ongoing legal matter, we are not able to comment further on the specifics of her case but can confirm that as we work to get her home, her mental and physical health remain our primary concern.” – Kagawa Colas to the AP

The WNBA said the seven-time All-Star has the “full support” of the league, which added that its “main priority is her swift and safe return to the United States.”

Griner, 31, has won two Olympic gold medals with the U.S., a WNBA championship with the Mercury, and a national championship at Baylor.

The Russian Federal Customs Service issued a statement on Saturday indicating that it has opened a criminal investigation into the large-scale transportation of drugs, which in Russia can carry a prison sentence of up to 10 years. The statement did not name Griner.

Last Saturday, the U.S. State Department issued a “do not travel” advisory for Russia because of its invasion of Ukraine. The agency urged all U.S. citizens to depart the country immediately, saying there is “the potential for harassment against U.S. citizens by Russian government security officials” and “the Embassy’s limited ability to assist” Americans in Russia.

Secretary of State Antony Blinken said during remarks at a news conference in Moldova on Sunday the U.S. will “provide every possible assistance” to citizens who are being held in foreign countries but did not speak directly to Griner’s case citing “privacy considerations.”

“Whenever an American is detained anywhere in the world, we, of course, stand ready to provide every possible assistance, and that includes in Russia,” he said, according to an ESPN report. “We have an embassy team that’s working on the cases of other Americans who are detained in Russia. We’re doing everything we can to see to it that their rights are upheld and respected.”

Evelyn Farkas, a former top Pentagon official who served as the U.S. Deputy Assistant Secretary of Defense for Russia and Ukraine from 2012-15, told Yahoo Sports that Russia could use Griner as a “high-profile hostage” as tensions between the U.S. and Russia reach a fever pitch over the war in Ukraine.

“If we want her out of jail, Russia is going to have some terms,” Farkas said. “It could be a prisoner swap. They also could use it as an implicit threat or blackmail to get us to do something or not do something. Either way, they find it useful.”

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Report: Global Cannabis Sales to Top $35B in 2022

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Cannabis industry analysts at BDSA suggest that global cannabis sales this year will reach more than $35 billion, representing a 22% increase over the $29 billion in sales last year. The firm also forecasts global cannabis sales will surpass $61 billion in 2026, a compound annual growth rate (CAGR) of more than 16%.

“Though most legal cannabis markets saw sales soften in the second half of 2021, the global cannabis market is expected to see brisk growth in 2022, driven by strong sales in new and emerging markets in the U.S., steady growth in Canada and international markets lead by Mexico and Germany.” – Jessica Lukas, BDSA chief commercial officer, in a press release

According to BDSA, legal cannabis sales in the U.S. will surpass $28 billion this year, representing growth of approximately 20% over 2021’s $24 billion and BDSA forecasts U.S. sales to reach $46 billion in 2026 – a CAGR of approximately 14% from 2021. The report names California as the “largest contributor” to overall U.S. cannabis sales growth over the next four years, while anticipating New York and New Jersey – which have yet to launch adult-use sales – Florida, which has not yet legalized cannabis for adults, and Michigan will round out the top five.

According to the BDSA report, cannabis sales in Canada, which legalized cannabis for adults in 2018, reached $3.8 billion last year and the firm estimates sales will climb to $4.7 billion this year and nearly $6.3 billion by 2026, a CAGR of 11% from 2021. BDSA forecasts that Ontario would “spearhead” Canada’s growth, growing over $1.3 billion by 2025, while British Columbia would add $420 million to total sales by 2026.

Sales of legal cannabis products, including cannabis-derived pharmaceuticals, outside the U.S. and Canada were estimated at $1.4 billion in spending for 2021 and are forecast to grow to $2.2 billion in 2022, according to BDSA. International sales, the company estimates, are expected to reach $9.5 billion by 2026, a CAGR of approximately 46% from 2021. BDSA suggests that the majority of that new spending will be driven by Germany and Mexico, with France and the U.K. also contributing significantly.

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L.A. Dispensary Raided Over $66k Fee Dispute

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A Los Angeles, California cannabis dispensary was raided by law enforcement this week over a $66,000 fee discrepancy with the California Department of Tax and Fee Administration (CDTFA), according to a High Times report. Iván Vanorwick, the founder of Jungle Boys, told High Times that the company had already received a hearing for the sum when law enforcement raided them on March 1.

Vanorwick explained that the raid included undercover police, the L.A. Police Department, sheriffs, and the Highway Patrol and the officers started “taking all the money inside the building” including cash from the budtenders’ tip jars – $174,000 in all.

“At five o’clock in the evening, we’re all sitting inside of the shop. It’s the first of the month so we’re paying all our bills. We look up at the camera and see one car, two cars, three cars, four cars, and are like ‘holy shit, they must be chasing someone inside of our building,’ you know? We watched them come up and my first thought was either they’re chasing someone inside of our building or someone that worked for us maybe has a warrant or something.” – Iván Vanorwick, via High Times

Vanorwick explained that during the pandemic, the CDTFA offices were closed, which prevented cannabis companies from paying their taxes in cash, which led to the $66,000 fee discrepancy. Ivan said the agency tried to charge the company late fees over the sum, which Jungle Boys — who had already paid $18 million in taxes in 2021 — has appealed.

“They won’t talk to our lawyer,” he said in the interview with High Times. “They won’t look at the appeal paperwork.”

CDFTA told High Times the action is their “standard procedure for cannabis businesses or any business.”

“We’re not singling out any industry or type of business,” the agency told High Times. “If you owe taxes in California, we do our best to collect what is due.”

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Latino Cannabis Association Launches in New York

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The Latino Cannabis Association (LCA) launched this week in New York aiming to support Latino licensees in the state and “secure representation” and “social and economic equity” for their members.

Jeffrey Garcia, the association’s president told the Albany Times-Union that he hopes to help cannabis license applicants navigate the state’s licensing process and the group will seek to “guide policy” and “promote sustainability.”

“The Latino community has been disproportionately impacted by the policies of prohibition,” Garcia said in a statement, “and now is our time to participate in the social and economic equity benefits of this new industry.”

Garcia was included on PoliticsNY and amNY Metro Cannabis Industry Power Players, where he is described as “a small business owner with over 15 years of experience in the service industry, including in a wine and coffee shop in the Bronx.” The profile outlined Garcia’s 20 years experience in law enforcement and his past role as president of the New York State Latino Restaurant, Bar, and Lounge Owners Association.

“The LCA membership is comprised of highly competitive licensee applicants for the new adult-use cannabis industry in New York. Further, we have formed a multi-dimensional coalition that is rich in major political and business leader support, while establishing a membership that is a diverse cross section of established entrepreneurs within the Latino community and legacy operators, all spanning a generational divide.” – The Latino Cannabis Association, via its website

The organization held its first event on March 1 and introduced its board and 25 founding members. In a press release, the organization said it is “committed to helping guide the cannabis business policy to construct a health market, bridge the gaps between vision, regulation, and realities, and promote sustainability and ways in which the regulated cannabis industry can bring real economic development to local communities.”

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Lawsuits Still Blocking Georgia’s Licensed Cannabis Cultivators After Eight Months

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Eight months after Georgia awarded six medical cannabis cultivation licenses, there is still nobody in Georgia growing plants or producing products under the state’s program, 11Alive reports. Medical cannabis use was legalized in the state in 2015 and the law allowing in-state cultivation for the program was established in 2019.

Following the approval of the licenses, 16 companies that were not chosen by the state filed a lawsuit challenging the issuance of the licenses, which has prevented those awarded a license from beginning operations, the report says.

Medical cannabis advocate Dale Jackson, whose son uses medical cannabis to treat his autism, said during a legislative committee hearing that out-of-state dispensaries have stopped selling to him because he is a resident of Georgia and they know he is violating federal law by crossing state lines with the products and fear that, if he’s caught, they could lose their licenses.

“Then I go to the next state. And the next one. You know where I end up? I end up about a block and a half from (the state capitol), buying my son’s medicine from a drug dealer. … So that’s what seven years looks like to me. That’s real, people. Real lives are affected by this.” – Jackson during his remarks via 11Alive

During the hearing, which is considering a bill to expand the number of medical cannabis cultivators from six to 22, Jackson said it is 10 times harder to get cannabis for his son than it was prior to the state’s medical cannabis reforms.

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Washington State Regulators Adopt Pesticide Testing for Cannabis

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The Washington State Liquor and Cannabis Board (LCB) has adopted final rules mandating all cannabis products sold in the state undergo pesticide tests, according to an agency press release. Effective April 2, the rules call for random heavy metal tests or, during an investigation, some time will be given for products to “sell-through.”

“These rules reflect years of hard work and engagement between LCB staff, licensees, and labs,” said Board Chair David Postman. “Testing for pesticides and heavy metals adds a deeper layer of confidence for consumers that these products are free of chemical or biological residuals.”

The press release notes heavy metals can be present in the environment for a variety of reasons like mining operations, industrial waste, automotive emissions, and farm or household water run-off. The agency said that the pesticides allowed on cannabis are “generally mild and considered safe for human consumption.”

If unapproved pesticides are found, the LCB has contracted with the state Department of Agriculture to conduct ad hoc tests for “investigational and enforcement purposes.” The board will convene a workgroup made up of legislators, industry members, labs, public health and prevention representatives, and consumers to determine the effectiveness of the new rules.

Washington tests medical cannabis under its Department of Health certification program, but only four producers and processors in the entire state undergo the more rigorous pesticide and heavy metal test required to qualify for the program.

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Cannect Hospitality: Building Stronger Cannabis Brands

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Nearly a decade into adult-use sales, the cannabis industry has yet to fully integrate with the hospitality and tourism spaces. Cannabis is highly regulated and remains federally illegal, which makes the hosting of a compliant cannabis event particularly complex. The team at Cannect Hospitality includes experts in safe practices, compliance, application writing, events, and more — through their combined wisdom, their goal is to build a bridge between cannabis and hospitality.

Cannect’s CEO and Partner Jenn Tramaglino is based in Las Vegas, a hub for tourism and hospitality. Ganjapreneur spoke with Tramaglino about Cannect’s vision and the scope of their work right now.

Tramaglino has nearly two decades of experience in food and beverage and has worked with events at high-volume venues. She started her cannabis career in 2017 through DOPE Magazine, a former cannabis publication that at the time was known for its upscale parties. She assisted their production team and noted how their brand activations were always over the top while also rigidly compliant. This still inspires her in every endeavor with Cannect.

One arm of the company assists cannabis companies with development services. They write and implement SOPs, hold staff training, offer compliance advising, and help with application writing — specifically, writing applications for cannabis lounges. Cannect also takes on marketing clients but will only take one at a time to avoid managing competing brands. The company works with brands all over the US on any or all of these offerings but they hold a specialty license to provide marketing, event production, and development services to Nevada-based cannabis companies. This represents about two-thirds of the work Cannect does — the rest of the company’s focus is on event production and activations. But these arms of the brand don’t exist exclusively from one another: staff and safety training, applications covering the full scope of a party, and understanding the current regulations are all essential for executing a compliant event experience.

Jenn Tramaglino, Cannect CEO and Partner Photo cred: Shannon Dorn

“Collectively, we can create stuff that’s really fun and exciting, a great experience that has the staff trained well and with hospitality in mind,” said Tramaglino. “A lot of times we have such tight regulations that businesses will often look at the regulation and then build their business around what’s required. We’re here to provide an extra layer of hospitality and fun to those kinds of businesses.”

Activations can be over-the-top or simple, it’s all up to the client. And while the client’s vision is essential, Cannect’s main goal with every party is that it’s both a good time and safe — for example, in one instance they took guests to an underwater scene that incorporated a photo and experiential element as a fun offering for guests, but the event also incorporated digestible education about digital marketing offerings.

Party safety protocols often fall under the purview of Cannect’s Director of Operations Andrew Mieure, who has been in cannabis safe serving practices since 2014. When it is a consumption event, the budtenders are required to wear gloves and change a pipe or bong’s water after every use, among other protocols. The event staff is also trained to avoid over-serving guests.

Public safety is always the biggest concern, so Mieure has poured over research to understand the cross-section of best practices for cannabis consumption and COVID safety. This is why Cannect now uses technology like HEPA filters and ultraviolet-C (UVC) light sanitization whenever applicable. These standards frequently evolve for consumer safety, an important topic as Nevada cities and counties finalize their cannabis lounge regulations.

Nevada’s lounge draft regulation is in discussion now and, throughout the process, the Cannect team has submitted their feedback to officials. Overall, the team is pleased with the proposed regulations and looks forward to helping clients through the application process. Tramaglino is most excited about concept development and SOP-building for lounges in the coming year. Mieure has written successful applications in other states and they look forward to bringing that expertise to Nevada when the application process opens.

Cannect is making the cannabis industry more hospitable from the retail counter to the after-party by training staff, writing compliant SOPs, consulting with hopeful licensees, and executing high-level events.

“I enjoy every party. I really love planning parties and getting to attend them,” said Tramaglino. “Seeing both the client’s joy of what we’ve produced on their behalf as well as the guests having the best time ever. I mean, that’s what the whole thing is about.”

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Psychedelic Research Task Force Approved By Utah Lawmakers

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Utah’s legislature has approved a bill to investigate the psychotherapeutic potential of psychedelics, Reason Magazine reports. HB 167 first passed the Utah House in February with a 68-1 vote and then sailed through the Senate last week on a vote of 23-1. The overwhelming margins of support for the bill set up a veto-proof majority in the legislature — the bill now sits on Gov. Spencer Cox’s (R) desk, awaiting his signature.

HB 167 will set up a task force made up of experts in the fields of medicine, psychotherapy, pharmacology, and addiction, whose goal will be to “provide evidence-based recommendations on any psychotherapy drug that the task force determines may enhance psychotherapy when treating a mental illness.” According to the bill, a “psychotherapy drug” is a “controlled substance” that “is not currently available for legal use.” A report is due from the task force by the end of October, according to the Reason report.

“This effort is especially significant because no one expects Utah to be a leader on this type of issue. If the Beehive State can blaze a trail for what legalization of psychedelics looks like, it’ll be a strong signal to other states that this new frontier of alternative medicine is a safe one to navigate for conservatives across the country.” — Libertas Institute President Connor Boyack, via Reason Magazine

House Bill sponsor Rep. Brady Brammer (R) — who describes himself as a “typical Mormon guy” — shared in January on Salt Lake City radio that psychedelics is not an “area that I’ve delved into personally, but I do have a lot of empathy for those that are struggling with mental illness.”

Brammer went further lobbying for the bill in session, telling his fellow legislators: “We’re looking for evidence-based recommendations. If the evidence just isn’t there, if it’s too dangerous, if it’s not something that can be recommended and done so responsibly, that’s something that we’re going to have to discern. But if we run away from the issue, I can tell you that we’re going to regret it later on.”

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Virginia Republicans Quash Early-Launch Retail Cannabis Bill

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Virginia’s House General Laws Subcommittee on Monday voted 5-3 against a bill that would have allowed adult-use cannabis sales to begin in the state later this year, DCist reports. The vote was along party lines, with Republicans blocking the bill’s advancement.

The launch of legal cannabis sales in the state is now unlikely until at least mid- or late-2023. The Senate had passed a bill earlier this month that would have permitted sales to begin in September – limited to the state’s current medical cannabis companies.

Democratic Del. Dawn Adams said during the meeting that the longer officials and lawmakers wait to have a regulated market, “the harder it will be to take control or even compete with that illicit market.”

“Currently if we don’t have a bill that gives us a well-regulated adult-use market amidst the back drop of legalization in Virginia, we are basically providing a year for the growth and strengthening of the illicit market.” – Adams via DCist

Following the vote, Speaker of the House Republican Todd Gilbert blamed Democrats for rushing to legalize cannabis in 2021, when the party controlled all three branches of state government.

“Let’s be clear: Virginia Democrats made a great big mess when they legalized marijuana without putting any regulatory or retail structure in place,” he tweeted. “We are left having to clean up their mess and we will not make it worse by rushing to fix it.”

Virginia NORML responded to the vote by describing it in a tweet “as a stunning failure of leadership on cannabis policy.”

In a statement, JM Pedini, NORML’s development director and executive director of Virginia NORML, called the committee’s disapproval an “extraordinary disappointment for Virginians who were loudly calling for access to retail sales to begin earlier than 2024, and ultimately a real failure by the legislature to provide for public and consumer safety.”

Virginia NORML also noted that some of the crimes temporarily repealed under the state’s legalization law will no longer be depenalized as the General Assembly has failed to reenact the bill as required by the 2021 reforms.

“…Multiple marijuana crimes in the §18.2 Code section are no longer repealed,” the organization tweeted, “and any crimes without specified punishments will default to a class 6 felony.”

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Tulsa Community College Offering Cannabis Industry Training Courses

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Tulsa Community College (TCC) is partnering with cannabis education company Green Flower on three certification programs through the TCC Continuing Education program. The Oklahoma-based college began offering the dispensary associate, cultivation technician, and manufacturing agent certificate programs on March 1.

Each certificate is offered in an eight-week non-credit course for $750 and offered with an online, on-demand schedule.

Pete Selden, vice president for Workforce Development at TCC said that because the programs are available on-demand, “an individual has tremendous flexibility for when they do the coursework.”

“With unprecedented growth in this industry, there is a need to develop a workforce with cannabis specific skills. TCC has joined forces with Green Flower to deliver this highly specialized content virtually. … These online certificates provide a tremendous opportunity for individuals who want to take advantage of the good paying jobs available in this industry.” – Seldon in a statement

According to Leafly’s 2021 jobs report, Oklahoma, which only has a medical cannabis program, ranks ninth in the U.S. for the number of cannabis jobs with more than 16,000 residents employed in the state.

“We applaud TCC’s commitment to helping working adults advance and train for new careers and their vision to help students enter and excel in the legal cannabis industry,” Daniel Kalef, vice president of education at Green Flower, said in a press release. “Like other highly regulated industries, the need to have expertise in material handling, quality control, patient care, security, transportation, horticulture and more is vital to the success of all aspects of the industry and all things people will learn in these courses.”

TCC is the only college or university in Oklahoma to offer cannabis-related training courses.

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Oklahoma Seed-to-Sale Tracking System to Be Implemented in 90 Days

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Oklahoma’s seed-to-sale tracking system is expected to be implemented in 90 days following a deal between the state and the lawyers behind a lawsuit challenging the technology’s adoption as a monopoly, The Oklahoman reports.

Under the deal, the state’s medical dispensaries will have 180 days to sell or dispose of any product that has not been tagged for the system, and the state Medical Marijuana Authority will hold at least five seminars to educate businesses about the system and provide trained employees who can answer questions about the tracking technology, which is provided by Metrc.

Ronald Durbin, who represented Dr. Z Leaf Cultivation, told the Oklahoman that the plaintiffs “got everything [they] wanted” except for resolving who would pay for the tags utilized by the system for tracking plants and products. Under the Metrc contract, businesses must pay for those tags, which Metrc indicated would cost about $705 annually. Metrc also charges businesses $40 per month for using the service.

“One of the things that we were happiest about is we got a firm commitment and an order that orders OMMA to aggressively enforce the seed-to-sell requirement against non-compliant businesses.” – Durbin to the Oklahoman

Oklahoma Medical Marijuana Authority Director Adria Berry said lifting the injunction “is going to clear the single biggest roadblock” regulators have faced attempting to enforce parts of the state’s medical cannabis law.

“It’s going to help us with that chain of custody of every single product in the state,” Berry told the Oklahoman following the end of the nearly year-long legal battle. “If there is a product that is not in the seed-to-sale tracking system, then it is not legal – and we will be able to discover that quickly.”

Oklahoma lawmakers and cannabis regulators have been trying to reign in unregulated cannabis production that is occurring under the guise of legal medical cannabis operations. The Oklahoma Bureau of Narcotics reported that from April 2021 through February 9, 2022, it has disbanded 85 farms that were operating without state approval. A bill proposed in the state House aims to pause medical cannabis licensing in the state with the bill’s sponsor, Rep. Rusty Cornwell, saying officials need to “confirm current operations are complying with the law.”

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Greenventory Creates More Automation Opportunities for Cannabis Manufacturers & Distributors

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The team at Greenventory keeps calibrating their inventory control tool for more automation to help cannabis companies meet operational and compliance challenges head-on instead of circumventing them.

Melbourne, FloridaGreenventory, Metrc-integrated cannabis inventory control & manufacturing management software built by Tecom Group, Inc., has been recently updated with more advanced manufacturing functionality to further bolster the work of cannabis processing and distribution companies.

With ever-evolving regulatory requirements, staying operational, compliant, and profitable comes with a lot of hurdles. Greenventory attempts to minimize the number of hoops to jump through by automating the task of documenting production processes and sending compliance reports into Metrc.

Businesses in the manufacturing vertical are baffled by the ongoing challenge of maintaining optimal inventory levels, documenting production, fulfilling customer orders, and getting compliance data over to the track-and-trace system on top of that. Greenventory’s manufacturing module allows creating presets (recipes) that can be used in manufacturing orders and, when applied, cause the software to predict manufacturing capacity based on components’ availability. As soon as manufacturing orders are completed in Greenventory, Metrc gets updated on new stock on hand (newly produced items) and the quantity changes for respective component items.

Along with the extended manufacturing functions, Greenventory offers a toolkit of other features that open up automation opportunities in areas like inventory tracking, purchasing, order fulfillment, sales, and accounting to help cannabis manufacturers, distributors or those with a microbusiness license face the uncertainties of the industry with greater operational resilience.

The software tracks and provides real-time quantity on hand information for cannabis and non-cannabis products across multiple storage locations. Greenventory users are encouraged to barcode their inventory early on and are able to print compliant product labels with a company logo, a barcode, and all relevant information pertaining to the product.

To bring extra speed and accuracy, Greenventory has baked barcoding into all possible workflows – looking up a stock item, stock intakes, inventory counting, adding line items to Purchase, Sales Orders, and Invoices, picking and packing customer orders before shipment.

Cannabis operators are challenged to perform repackaging (splitting the content of one package into several or combining multiple packages into one) in a way that keeps Metrc in the loop and inventory records intact. Splitting or merging packages in Greenventory will result in the emergence of new packages with new IDs. The software makes sure that the traceability data such as new package ID, changes to inventory levels, and closed packages will be broadcast to Metrc immediately.

Greenventory supports the work with suppliers through automated purchase order management and a barcode-driven receiving process that helps catch shipping errors and validate received products before they get accepted in Metrc.

Cannabis businesses looking to align their accounting with everyday operations can opt for Greenventory’s bi-directional QuickBooks integration. The software can be set to push inventory, purchasing, and sales data to the accounting system based on a schedule.

Sign up for a free trial at https://app.greenventory.handifox.online/Account/Register or email ruslan@greenventory.online.

 

 

 

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Arizona Cannabis Testing Lab Fined Nearly $500k for Repeated Violations

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An Arizona cannabis testing lab will pay a $468,000 civil penalty following repeated violations of state law, 3TV/CBS5 reports. The deal between the state and OnPoint Laboratory comes after the state threatened to pull the lab’s certification but does not require the company to admit to any liability or wrongdoing.

In a report prepared by the Arizona Department of Health Services (AZDHS), deficiencies and violations by the laboratory go back to September 2020, and the agency described them as “committed intentionally” and “a risk to the health, safety, and welfare of the public and medical marijuana qualifying patients.”

Inspectors found OnPoint failed to have complete records and documentation for inventory, cannabis disposal, maintenance records for equipment, chemical storage, and employee training, the report says. The report also found machines not properly calibrated to detect accurate levels of pesticides and herbicides, solvents, heavy metals, and bacteria. The company had been linked to a cannabis recall over possible Salmonella contamination.

The inspectors also found that at least one employee was trained to use a technique that produced inflated potency results, allowing dispensaries to charge more for the product.

The report also documented security lapses including a delivery driver accessing the area where cannabis was stored, non-employees accessing unlocked front doors, and propped open doors.

In a statement, OnPoint Spokesperson Steve Elliott told 3TV/CBS5 that the “violations noted in the Reports of Findings have been corrected and has provided verification that the laboratory owner no longer has a familial or financial relationship with or interest in a dispensary or related medical marijuana business entity.”

Under the terms of the deal, OnPoint will also select an outside auditor at its own expense, which AZDHS will have to approve, to perform additional inspections. The auditor will have to submit a written report to AZDHS within 30 days. The agreement came nearly 18 months after the initial inspection revealed the violations.

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MedMen Sells Florida Operations

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MedMen sold the entirety of its Florida holdings to Green Century Holdings LLC, according to a press release published Monday. In the $83 million cash deal, Green Century will take over MedMen’s Florida license, dispensaries, inventory, and growing facilities, the release says.

Michael Serruya, MedMen’s chairman and interim CEO, said the deal is part of the company’s “go-forward strategy” that envisions MedMen operating an “asset-light model” that enables the firm “to leverage the power and strength of the MedMen brand.”

In addition to their license and physical assets, the deal includes a marketing agreement in which MedMen will license their trademarks for a quarterly revenue-based fee. The deal is expected to close in late April and early May, barring any regulatory setbacks.

“We feel confident this model will deliver strong financial results and opportunities for growth across many states and will continue to identify trademark licensing opportunities that will introduce the MedMen brand and retail experience to other markets across the United States and internationally.” – Serruya in a statement.

MedMen recently closed a $75 million deal to sell their New York assets but later filed a lawsuit claiming the buyer, Ascend Wellness, used their influence with New York Gov. Kathy Hochul’s (D) office to get the deal approved by regulators after the transaction appeared to have stalled. MedMen had agreed to sell their New York holdings to Ascend Wellness a year earlier.

MedMen eventually withdrew the allegations claiming Ascend had tried to influence officials.

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California Bill Would Allow Interstate Cannabis Commerce

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A bill to allow interstate cannabis sales was introduced in the California Senate last month which would allow the governor to enter into agreements with other states that have approved the reforms and allow cross-border commerce, L.A. Weekly reports. The measure includes protections for municipalities that do not permit cannabis operations within their borders.

“The bill would prohibit an entity with a commercial cannabis license issued under the laws of another state from engaging in commercial cannabis activity within the boundaries of this state without a state license, or within a local jurisdiction without a license, permit, or other authorization issued by the local jurisdiction.” – SB.1326 text

Lindsay Robinson, executive director of the California Cannabis Industry Association, said that interstate cannabis commerce “has kind of been on the table for the last few years” but “probably got shelved” due to COVID.

“With that said, it is going to come down to the details in the agreement,” Robinson said in an interview with L.A. Weekly. “We need to make sure that California cannabis is stabilized, and that the businesses here are functioning well, and hopefully thriving, before we would contemplate an import.” 

Robinson also described the bill’s sponsor, Sen. Anna M. Caballero (D) as thoughtful on the subject of cannabis. The measure has been sent to the Senate Rules Committee but has not yet been taken up by the body.

In 2019, Oregon passed a law allowing the export of cannabis products to other legal states; however, provisions of the measure are only allowed with approval from the federal government. A federal bill aims to allow cannabis commerce between states with the reforms that border one another, but that bill has not been taken up by either chamber.

In 2020, cannabis advocates and businesses launched the Alliance for Sensible Markets with their sights set on cannabis interstate commerce among legalized states. The organization said cannabis commerce between consenting markets “will bring investment, expansion, business formation, and tens of thousands of jobs in the midst of a historic recession.”

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Majority of Vermont Towns Approve Retail Cannabis Sales

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The majority of Vermont municipalities that voted Tuesday on whether to allow retail cannabis operations within their borders approved such measures, VT Digger reports. In all, 25 of the more than 40 communities voted to allow retail cannabis sales, which were approved by lawmakers in October 2020. Adult cannabis use was first approved by Vermont lawmakers in 2018 but the reforms did not include sales.

Essex, the second-largest municipality in the state, approved retail sales by a 3,589-2,473 margin, while the 19 residents who voted in Norton’s town meeting voted against allowing retail cannabis sales.

James Pepper, chair of the Vermont Cannabis Control Board, called the votes “a very important moment” for the state. Last year, nearly two dozen Vermont communities voted to allow legal sales, including Burlington, the state’s largest city.

“We want Vermonters to be able to access this product close to their home as opposed to having these cannabis deserts around Vermont.” – Pepper to VT Digger

Pepper added that, with the new approvals, his agency has a lot of work to do.

“Towns don’t know where their authority is, where the board’s authority is,” he said in the report.

In all, nearly 50 Vermont communities have voted to opt-in to allowing retail sales within their borders. Once a town votes in favor, businesses can apply for retail licenses, which are considered by the state board.

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NCAA Raises THC Limits for Student-Athletes

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The National Collegiate Athletic Association (NCAA), which governs college athletics in the U.S., has changed its cannabinoid policies for student-athletes. In a press release last Friday, the Committee on Competitive Safeguards and Medical Aspects of Sports (CSMAS) said they were raising the THC threshold from 35 to 150 nanograms per milliliter of blood.

The cannabinoid limits are now aligned with those of the World Anti-Doping Agency and the changes are immediate and backdated to cover tests administered in fall 2021 and later, the press release says.

“Reconsidering the NCAA approach to cannabis testing and management is consistent with feedback from membership on how to better support and educate student-athletes in a society with rapidly evolving public health and cultural views regarding cannabis use,” Dr. Brian Hainline, the NCAA’s chief medical officer, said in a statement.

Additionally, the committee changed the penalties associated with a positive THC test. Under the new rules, athletes would not be suspended from games until they fail a second drug screening. These updates will take longer as each NCAA division must change their bi-laws individually, the release notes.

“Marijuana is not considered a performance- enhancing substance, but it remains important for member schools to engage student-athletes regarding substance use prevention and provide management and support when appropriate.” – Dr. Brian Hainline in a statement

Dr. Stephanie Chu, CSMAS chair and Colorado’s team physician said the changes came after “extensive discussion” by the drug testing subcommittee, which has been meeting since last fall. She said the updates to the NCAA cannabinoid policy “create a clear pathway for student-athletes to participate in education and management programs specific to their needs at the campus level.”

More penalties info:

  • “First positive test: No loss of eligibility if the school provides a management plan and education for the student-athlete.
  • “Second positive test: No loss of eligibility if the school provides additional management and education and confirms the student-athlete was compliant with the original management and education plan. However, the student-athlete must be withheld from 25% of regular-season contests if they were not compliant with the original management and education plan.
  • “Third positive test: No loss of eligibility if the school provides additional management and education and confirms the student-athlete was compliant with the previous two treatment and education plans. However, the student-athlete must be withheld from 50% of regular-season contests if they were not compliant with the previous management and education plan.”

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42% of Tennessee Hemp Crops Test Over THC Threshold

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According to the Tennessee Department of Agriculture (TDA), 42% of hemp crops in Tennessee are being found non-compliant with federal requirements limiting total THC levels in the crops to below 0.3%, forcing farmers to destroy their crops, according to a News Channel 5 report. Seth Fuller, co-owner of Nashland Farms, said that he has twice had his crops tested by the TDA and it twice “come back hot.”

“The last couple months have proven to be stressful and destructive for the hemp industry.” – Fuller to News Channel 5

Fuller said the crops tested slightly over the 0.3% limit for THC and since they couldn’t get the levels down, the crops were burned.

“It’s a very sad day at Nashland Farms,” Fuller said in the report. “There are a lot of people who helped maintain this crop to help get it to its potential and there are a lot of people waiting to get this crop to help with ailments and everybody is kind of losing in this case. So, we’re trying to create a win and educate the general public and try to destigmatize hemp as a whole.”

Denise Woods, Hemp Program Coordinator for TDA, said the agency was trying to help farmers, including allowing for some remediation, but the agency’s hands are tied by federal law.

“There’s a lot of variables that no one can control with any part of agriculture, but especially hemp that affects the levels of THC,” she told News Channel 5. “When the [U.S. Department of Agriculture] said in their final rule that it’s 0.3% THC, that’s what we have to go by.”

In the past three years, the state has lost about 3,000 hemp producers, which fell from 4,000 statewide to just over 1,000, the reports says. Woods indicated that many of the hemp growers who stopped did so because they weren’t committed to trying to keep their crop under the 0.3% THC threshold.

Editor’s note: A previous version of this article incorrectly the 0.3% federal threshold for hemp crops was for THCa, not THC.

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Maryland House Passes Bill for Voter Referendum on Cannabis Legalization 

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The Maryland House of Delegates on Friday approved a bill that would allow voters to decide in November whether to legalize cannabis for adults, the Baltimore Sun reports. The proposal, which still requires Senate approval, leaves regulatory details up to the General Assembly were voters to approve the reforms. It would take effect July 2023.

A Goucher College poll conducted last March found two-thirds of Maryland voters support cannabis legalization, including 77% of Democrats (18% opposed), 50% of Republicans (47% opposed), and 60% of independents (34% opposed).

Democratic Del. Luke Clippinger, who chairs the House Judiciary Committee, told the Sun that the bill amounts to “important first steps” to cannabis reforms in the state, including reversing cannabis-related convictions. Currently, possession of 10 grams or more of cannabis is a misdemeanor in Maryland, which can be met with six months imprisonment and a fine of up to $1,000. First-time offenders caught with less than 10 grams are subject to a $100 fine, the report says.

“Those thousands of incarcerations have not made us safer,” he said in the report.

According to a legislative analysis, in 2020, there were 1,072 arrests in Maryland for low-level possession, of which 59% of people were Black, 39% white, and 2% Asian. The report found that Black Marylanders are twice as likely to be arrested for cannabis possession compared with their share of the state’s population (29%).

A companion bill, which was also approved on Friday, would allow people charged only with cannabis possession to have their records expunged from the Maryland Judiciary Case Search website and the state’s criminal records database, while those currently incarcerated could apply to the court to have their sentence reduced to time served. The legislation would allow individuals over 21-years-old to possess up to 1.5 ounces of cannabis after July 1, 2023, while amounts from between 1.5 ounces to 2.5 ounces would be reduced to a civil offense instead of a misdemeanor, the report says.

Republican Gov. Larry Hogan has not taken a position on the reforms but has indicated he would prefer a voter referendum over a legislative decision. The bills move next to the Senate.

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Washington State Lawmakers Considering Bills to Regulate or Ban Synthetic THC

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With about two weeks left in the state’s legislative session, Washington lawmakers are considering two bills to outlaw or regulate synthetic THC products, such as delta-8 THC, the Peninsula Daily News reports. Both bills have bipartisan support; one would ban the products entirely and the other would prohibit their sale outside of cannabis retailers but convene a scientific panel that may recommend ways to authorize their sale in the future.

Democratic state Sen. Karen Keiser, who is sponsoring the broad ban bill with Republican Mark Schoesler, told the Daily News that the unregulated synthetic cannabinoid products are “a public health danger and a threat, and it needs to be removed.”

Washington’s Liquor and Cannabis Board (LCB) last year barred all synthetically derived THC products from the state’s legal cannabis market over fears that competition from the cheap ingredients produced from hemp grown out of state would push many of the state’s licensed, regulated cannabis growers out of business, the report says, noting that at least 17 states have passed full bans in the past year.

LCB Chairman David Postman told the Daily News that the bills before the Legislature is the state’s “best, and perhaps only, chance this year to get the laws necessary to regulate the burgeoning world of the novel and minor cannabinoids.”

The move to implement a ban on the sale of synthetic cannabinoid products at non-cannabis retailers, such as gas stations and smoke shops, is backed by the Washington CannaBusiness Association. While there is some disagreement whether the products belong in the regulated cannabis market, the group is concerned whether the legislation would give the LCB authority over “impairing” cannabinoids without adequately defining what that means, which could create uncertainty for regulated businesses, the report says.

Neither bill has yet been considered by lawmakers.

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Cannabis Product Prices Drop Amid Rising Inflation

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Despite rising inflation, the cost of cannabis products has declined over the past year, according to data from cannabis analytics firm Headset outlined by CNN. Flower prices fell 16.7% per gram, edible prices dropped 11.8% per milligram of THC, and the price of vape products fell 12.4% per milligram, according to the Headset analysis, which tracked sales in California, Colorado, Michigan, Nevada, Oregon, and Washington State.

Andrew Livingston, director of economics and research at Vicente Sederberg LLP, told CNN that because cannabis is federally outlawed, individual states create their own rules and regulations for the market and, therefore, prices are more heavily dependent on in-state demand. Rather than attributing the drop to “no inflation,” he said, “there are other factors at work that would overwhelm the inflationary signals.”

Theresa Ekman, supply chain coordinator for Native Roots, said that the company is “ordering smarter,” noting that the company has had to increase its wages by 14% during the coronavirus pandemic.

“There’s been so many other unfortunate, negative influences with regards to this pandemic that we really did not want to be one of those. We wanted to be able to continue to… maintain the same prices to keep our customers happy.” Ekman to CNN

Kika Keith, the owner of Gorilla RX, said that she does not plan to increase prices at her Los Angeles retail dispensary because of “how inflation affects the disproportionately impacted communities and the disenfranchised.”

Gorilla and other operators did launch a box with a variety of products from Black-owned brands, called the Black Box Project, for a discounted price. Keith said the project looked toward “cooperative economics” which she described as “the beauty that’s coming up the rose that’s coming from the concrete.”

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Arizona Community Colleges Get $31M from Cannabis Taxes

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Arizona’s 10 community college districts received more than $31 million from cannabis-derived taxes collected last year, the Associated Press reports. The state’s legalization law created a 16% excise tax on sales, of which about one-third is earmarked for Arizona community colleges.

Colleges can use the funds for workforce development, STEM, and certain other education programs.

The funding is about equal to the size of Republican Gov. Doug Ducey’s plan to use $30 million in federal funds toward six new workforce accelerators throughout the state’s community colleges.

The state’s largest community college system, Maricopa Community Colleges, received more than $17 million from the cannabis tax fund last year. It told the AP it plans to use the funds for workforce programs and potentially uses $5 million to help cover workforce-related expenses or STEM due to budget shortfalls.

Pima Community College, the second-largest system, received $3.9 million and plans to use the funds for capital projects to expand and remodel health professions spaces and science labs, spokesperson Libby Howell told the AP.

Cochise College, which received over $2 million last year, is using the funds to significantly expand its first responders’ academy offerings, it told the AP.

Mandy Heil, the spokesperson for Arizona Western College which received $1.7 million, told the AP that the college plans to use the funds toward the $35 million in revenue bonds it was issued to update facilities, including for programs in e-gaming, cybersecurity, and allied health.

Yavapai College received $1.4 million and spokesperson Tyler Rumsey said the college plans to expand services at the college’s Regional Economic Development Center, which helps foster economic development, workforce growth, and regional collaboration programs.

Central Arizona College CFO Chris Wodka said the school would use its $1.3 million toward public safety program initiatives, such as improving the driving track and shooting range, police equipment, ammunition, and other supplies and that the college will spend the rest on STEM and workforce development programs.

Mohave Community College received $1.1 million which it plans to help fund the construction of an advanced manufacturing training center at the Kingman Airport Industrial Park and may also use the money to expand career and technical education and STEM programs based on northwestern Arizona workforce needs, spokesperson James Jarman told the AP.

Eastern Arizona College said it plans to use its $1 million from the cannabis sales tax money to help build a skills center for multiple workforce development programs for in-demand, local, careers, spokesperson Kris McBride said in the report.

Other colleges received less than $1 million, including Coconino Community College ($930,000), Northland Pioneer College ($900,000), and the Gila and Santa Cruz county provisional community college districts ($228,000 and $112,000, respectively), which indicated they would use the funds for work development programs.

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Atlantic City, New Jersey Official Pushing for Consumption Lounges

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An official in Atlantic City, New Jersey is asking the state’s cannabis regulators to consider large-scale consumption areas within the city, claiming the state’s biggest convention town “needs special provisions to capitalize” on the new marketplace, the Press of Atlantic City reports. Kashawn McKinley, director of constituent services for Atlantic City, made the request during a virtual meeting with the Cannabis Regulatory Commission last week, noting that Atlantic City is the convention capital of the East Coast and that the cannabis industry “will be driven by conventions.”

During the meeting, regulators discussed the possibility of consumption lounges, including calls from the public to remove restrictions on sites selling non-alcoholic beverages and snacks. Dr. Suzaynn Schick of the University of California’s Center for Tobacco Control, Research and Education, who was invited by the board, said that studies in California found that the number of particles in indoor cannabis consumption areas was “off the scale” even in spaces that had installed new ventilation systems. She said that low levels of exposure to smoke including the smoke from cannabis can be dangerous, even if it remains an open question whether cannabis smoke is less dangerous than tobacco smoke.

McKinley also argued that consumption lounges should be accessible because cannabis is not permitted for individuals who are in public housing and that its use could result in an eviction.

“If it is illegal to consume in public housing and in public, then cannabis is still illegal for an entire sector of our community,” he said during the meeting.

During the meeting, the commission did approve a uniform warning label for cannabis products – a stop sign next to a stylized cannabis leaf in a triangle and the words “not safe for kids.” The mark will be imprinted onto products to indicate they include cannabis.

While the state has missed its February 22 statutory deadline to allow adult-use sales, last week Gov. Phil Murphy (D) said last week that he hoped the market would launch in March.

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California Bill Would Eliminate Cannabis Cultivation Tax & Raise Retail Tax

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A proposed bill in California would suspend the state’s cannabis cultivation tax while increasing the retail excise tax in order to maintain neutrality with state revenues. The measure, co-sponsored by Democrat Assemblymember Bill Quirk and Republican Assemblymember Tom Lackey, comes following an increase in the state’s cultivation tax, which took effect January 1.

“Previous efforts to initiate tax relief for the legal cannabis industry have, unfortunately, failed passage in the Legislature. The reality is that a viable approach will have to account for its impact on state revenue. This proposal to consolidate taxes on cannabis is crucial to fulfilling fiscal responsibilities of the state while successfully phasing out the cultivation tax, which is applied whether or not the product is actually sold.” – Quirk in a press release

The cultivation tax is imposed at the beginning of the supply chain and is included in the wholesale cost of goods as it passes through manufacturers and distributors. The tax compounds as other state and local taxes apply, which enlarges the original tax burden by as much as 50% by the time it reaches end consumers, Quirk’s office said. The state and local taxes imposed on cannabis is one of the many factors that make legal cannabis more expensive than cannabis from the illicit market.

Quirk’s office pointed to a 2019 report by the state Legislative Analyst’s Office, How High? Adjusting California’s Cannabis Taxes, which found that the current weight-based cultivation tax is ineffective towards reducing harmful cannabis use, stabilizing tax revenues, and easing industry compliance. The report ultimately recommended the elimination of the cultivation tax and estimated that a revenue-neutral approach would likely suffice to fund programs identified under the state’s legalization law.

The bill was introduced on February 17 but has not yet been sent to any committee; however, according to state data could be heard in a House committee on March 20. If approved. the California Department of Tax and Fee Administration would implement the change by July 1, 2023.

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