Illinois Reaches $1B in Combined Cannabis Sales for 2024

7/16/2024

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Illinois on July 1 reached $1 billion in combined cannabis sales, including more than $850 million in adult-use sales and nearly $150 million in medical cannabis sales. The milestone was achieved nearly two weeks faster than last year. 

During the Illinois 2024 fiscal year, total cannabis sales exceeded $2 billion, which represents an increase from $1.9 billion in fiscal year 2023 and $1.8 billion in fiscal year 2022. 

In a statement, Gov. JB Pritzker (D) said “Growing sales in 2024 means cannabis tax revenue will continue to play a major role in righting decades of wrongs in the state’s criminal justice system.”  

“Illinois has the most equitable cannabis industry in the country and it’s growing and thriving. The increase in total adult-use cannabis sales, combined with the policies my administration is implementing to support communities ravaged by the War on Drugs, highlights how this emerging industry is helping us set a national standard in equity and economic justice.” — Pritzker in a press release 

According to Cannabis Regulation Oversight Office data, Illinois consumers made 81% of the total value of purchases through the first six months of 2024, while out-of-state consumers made 19%. Nearly half – 49% – of all cannabis sales in the state were flower, followed by vape products (32%) vape, and edibles (22%), which includes beverages (1.1%). 

Tax revenue collected from cannabis sales has led to more than $244 million in R3 Grants for economic development, violence prevention, and youth development in disproportionately impacted communities across the state, according to the Governor’s Office. Revenue also enabled the Illinois Department of Commerce and Economic Opportunity to establish the Illinois Cannabis Social Equity Loan Program to connect people and communities historically impacted by arrests and imprisonment for cannabis offenses with opportunities to participate in the legal cannabis industry. To date, almost $22 million in forgivable loans have been issued to social equity craft growers, transporters, and infusers. 

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Advocates in 3 Texas Cities Submit Signatures for Cannabis Decriminalization Ballot Measures

7/16/2024

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Advocates in the Texas cities of Bastrop, Dallas, and Lockhart have collected enough signatures to put a cannabis decriminalization question on November ballots, the San Antonio Current reports. City officials must still certify the signatures in order to put the issue to voters. 

Voters in Austin, Denton, Elgin, Killeen, and San Marcos have approved similar measures, led by Ground Game Texas. 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.  

Texas Attorney General Ken Paxton (R) sued the cities that had approved the reforms, saying they “deliberately violate Texas law and promote the use of illicit drugs that harm our communities.”  

Last month, Texas District Court Judge Jan Soifer dismissed Paxton’s challenge, saying essentially there was no reason to proceed with a trial because Paxton had no legal justification to file the case. 

Advocates expect Paxton to appeal the ruling, but he cannot refile the case in district court as it was dismissed with prejudice.  

Texas is one of 19 states where people can still be jailed for low-level cannabis possession. 

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Delaware Earmarks $6.2M for Social Equity Cannabis Industry Applicants

7/16/2024

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Delaware officials are earmarking $6.2 million for a fund for social-equity cannabis industry applicants, WHYY reports. The state will use $4.2 million from application fees for conversion licenses – licenses for current medical cannabis operators to enter the adult-use industry – for the program, while the remaining $2 million was allocated by lawmakers. 

Under state law, social equity applicants must own at least 51% of the business and have been convicted of a cannabis offense, as long as the offense wasn’t for selling more than 11 pounds or dealing to a minor; or have a parent, legal guardian, child, spouse, or dependent who was convicted of a cannabis crime; or have lived for at least five of the last 10 years in a “disproportionately impacted area,” which is defined as census area where cannabis arrests have been high in the last decade.  

Conversion licenses will cost $200,000 for cultivators and $100,000 for retailers, manufacturers, and testing laboratories.  

Delaware lawmakers last month passed a bill that lets current medical cannabis companies in the state apply for the conversion licenses and Gov. John Carney (D) is expected to sign it in the coming weeks. Those licenses are expected to be issued in November.    

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California cannabis cop charged with gun trafficking

Detective in California Cannabis Division Charged with Gun Trafficking

7/15/2024

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A recent investigative report by WeedWeek has revealed that a detective with the California Department of Cannabis Control (DCC) was arrested in April and now faces federal gun trafficking charges. According to court documents obtained through a public records request, the detective, Corey Harris, is charged with conspiracy to traffic firearms and dealing and manufacturing firearms without a license, each carrying a maximum penalty of 15 years.

Screenshots obtained by WeedWeek from an Instagram account allegedly owned by Harris show guns and knives advertised for sale. In one instance, Harris allegedly texted a buyer, “Your package is secure…I got something good for us to smoke when you guys come.”

Harris, a former police officer in San Diego and Visalia (Tulare County), joined the DCC in early 2023 and served as a firearms instructor. Despite his recent certification in January 2024, his California Peace Officer Certification has been temporarily suspended. Harris has pleaded not guilty and is out on bail, according to the WeedWeek report.

Harris’ preliminary hearing is scheduled for July 18. The charges against him stem from alleged sales in 2021 and 2022 while he was with the Visalia force, and communications with a buyer in 2023 after he joined the DCC. According to an affidavit filed by U.S. Bureau of Alcohol, Tobacco, and Firearms special agent Christopher Stanzos, Harris sold at least three guns, including a machine gun, to a felon. Harris also allegedly instructed the buyer on how to manufacture and alter guns and directed him to purchase ammunition without a background check.

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Wiz Khalifa Arrested in Romania for Drug Possession After Smoking Weed On Stage

7/15/2024

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U.S. rapper Wiz Khalifa was arrested in Romania for drug possession over the weekend after his performance at the Beach Please! Festival on Saturday, USA TODAY reports.

Law enforcement published a press release confirming they had arrested the performer for “illegal possession of high-risk drugs,” highlighting the specific possession and consumption of cannabis while on stage. It is illegal to consume and possess cannabis in Romania.

“It was noted that he, during a recital held at a music festival taking place in Costinești resort, Constanta county, possessed over 18 grams of cannabis (a high-risk drug) and consumed (onstage) another amount of cannabis in the form of an artisanal cigarette.” — Press release excerpt, via USA TODAY

Khalifa referenced his experience at the show in a post on X the next day: “Last night’s show was amazing. I didn’t mean any disrespect to the country of Romania by lighting up on stage. They were very respectful and let me go. I’ll be back soon. But without a big ass joint next time.”

Khalifa is the second American hip-hop star this year to have run-ins with law enforcement over cannabis charges while abroad — in May, Nicki Minaj had to reschedule a concert in Manchester after Dutch police found cannabis in her luggage while flying out of Amsterdam.

 

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Report: Florida Hemp Execs Pledge Millions to Defeat Legalization Amendment

7/15/2024

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Some of Florida’s hemp operators say they pledged to donate $5 million to the Republican Party of Florida after Gov. Ron DeSantis (R) vetoed a bill to regulate hemp-derived intoxicating cannabinoids. The executives discussed the pledge in WhatsApp messages obtained and reviewed by CBS News.

“We know nothing in life is free and neither was this veto,” reads the introductory post for a WhatsApp group called Save Florida Hemp. The post, which is dated June 27 — three weeks after DeSantis vetoed the bill that sought to ban hemp-derived delta-8 THC products and other intoxicating cannabinoids — also includes the bank routing details for the Republican Party of Florida.

“We are currently seen as DeSantis’s allies to defeat the recreational ballot initiative. Our lobby team made promises to rally some serious funding to stand with him on this. He chose Hemp as his champion and now we’ve got to deliver.” — Save Florida Hemp WhatsApp introduction post, via CBS News

The Save Florida Hemp group has more than 1,000 members, the report said. The group is opposing the upcoming Florida constitutional amendment to legalize adult-use cannabis, which would make the hemp industry’s cannabinoid offerings more or less obsolete.

Save Florida Hemp member and Honest PP&D owner Ernie Ciaccio said, “We knew that we had to show up and show the governor’s office and show the Republican Party and all the legislators here in Florida that not only were we taking our roles as stakeholders in hemp seriously, but that we were committed to being part of the political process and shaping legislation here that would be not only good for our industry but good for Florida.”

Meanwhile, a recent poll found that 64% of Florida voters support the amendment to legalize cannabis. Constitutional amendments in Florida require 60% of the vote to pass.

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House Committee Votes to Block Cannabis Rescheduling Effort

7/12/2024

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Lawmakers in the U.S. House Appropriations Committee have voted to block the Biden Administration’s effort to move cannabis from Schedule I to Schedule III under federal law, Forbes reports.

The Republican-controlled committee on Tuesday approved an amendment to a Commerce, Justice, Science, and Related Agencies (CJS) funding bill that, if enacted, would block the Department of Justice (DOJ) from using any federal funds to reschedule or deschedule cannabis under the Controlled Substances Act (CSA).

In 2022, President Joe Biden (D) pardoned all federal cannabis possession charges and tasked top administration officials — including the Secretary of Health and Human Services and U.S. Attorney General — with reviewing the plant’s Schedule I status. In 2023, the U.S. Department of Health and Human Services recommended that cannabis be moved to Schedule III under federal law; the rescheduling plan was formally announced by the president in May of this year. Ultimately, if cannabis were moved to Schedule III, it would remain federally illegal but would be significantly more accessible for research and medicinal purposes.

The House Appropriations Committee also rejected an amendment from Rep. Barbara Lee (D-CA) — who co-chairs the Congressional Cannabis Caucus — that sought to block the DOJ from spending resources to interfere with state-legal or tribal cannabis programs, including adult-use reforms, the report said.

House Republicans’ effort to block cannabis rescheduling and other reforms appears to run counter to public sentiment after a Pew Research poll in March found 88% of Americans believe that cannabis should be made legal for at least medical purposes, if not for adult use outright.

Meanwhile, according to a survey published in April, most Americans no longer believe cannabis use carries a stigma and 72% said that cannabis is only going to get more popular.

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Massachusetts Voters Will Decide Whether to Legalize Natural Psychedelics

7/12/2024

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Massachusetts officials announced Wednesday that a ballot initiative to make certain psychedelics legal in the state for adults has qualified for November ballots, Marijuana Moment reports.

Advocates with the Massachusetts for Mental Health Options (MMHO) campaign submitted the final batch of signatures for the initiative last week. The campaign previously turned in enough signatures to force the Legislature to consider the issue but, after lawmakers rejected the reforms, the campaign submitted an additional 14,000+ signatures last week to put the issue on the ballot.

If approved by voters, the Natural Psychedelic Substances Act would legalize the possession, cultivation, and sharing of certain psychedelics for adults aged 21 and older. Possession limits under the proposal would be capped at one gram for DMT, 18 grams for non-peyote mescaline, 30 grams for ibogaine, and one gram for both psilocybin and psilocin. Notable, those weight limits do not account for material that the psychoactive substances are attached to, the report said.

The initiative would also establish a Natural Psychedelic Substances Commission to oversee implementing the law and licensing psychedelics service centers and facilitators, with a Natural Psychedelic Substances Advisory Board to “study and make recommendations” to the commission regarding public health, training and regulations, and the potential for future expansions to the psychedelics program.

If passed, the initiative would take effect December 15, 2024. The proposal does not include any expungement provisions for prior psychedelics-related convictions.

“The support from Massachusetts residents has been overwhelming, we are thrilled to be on the ballot this year. Massachusetts veterans have been advocating for this type of care for years, it’s time to make it accessible and affordable for them and other struggling Massachusetts residents.” – Emily Oneschuk, grassroots outreach director for MMHO, in a press release

A study published earlier this year found that older adults who have used psychedelics tend to exhibit better cognitive function and fewer depressive symptoms than those who have never used psychedelics.

 

 

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Massachusetts Officials May Appoint Receiver to Oversee Embattled Cannabis Commission

7/11/2024

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Massachusetts officials are considering a receivership for the state’s Cannabis Control Commission (CCC) following a hearing Tuesday where lawmakers described the agency as a “train wreck” and “Wild West,” according to a WBUR report. The commission is under scrutiny amid allegations of a toxic work environment, high-level personnel suspensions, and regulatory delays.  

The Legislature’s Joint Committee on Cannabis Policy hearing came after state Inspector General Jeffrey Shapiro called on officials to appoint a receiver to oversee the CCC.  

“If the need were not urgent, I would not have approached the matter in this manner. The longer the CCC flounders, the less certainty and stability for applicants and licensees, patients and caregivers, investors, consumers, and host communities.” — Shapiro, to the committee, via WBUR 

While lawmakers from both sides of the aisle voiced concerns over the agency, state Rep. Rob Consalvo (D), the committee’s vice chair, called appointing a receiver “the nuclear option,” noting that “it’s never been done on a state agency.” 

Shapiro contended that a receiver would be a short-term solution while lawmakers considered deeper reforms on the agency, describing its leadership as thinking “they’re beholden to no one, that there’s no oversight, and that they can kind of do as they please.” 

Following the hearing, a CCC spokesperson told WBUR that the agency is taking “seriously the concerns that have been identified” and that it’s “proud of its track record of standing up and regulating a safe, effective, and equitable medical- and adult-use cannabis industry.”    

State Sen. Michael Moore (D), who has called the CCC “a black eye on the legal cannabis industry in Massachusetts,” this week filed an amendment to the Senate’s economic development bill that would allow the governor to appoint a receiver.  

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North Dakota Advocates Submit Signatures for Adult Cannabis Use Petition

7/11/2024

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Advocates in North Dakota on Monday submitted more than 22,000 signatures to the Secretary of State’s Office in their bid to put an adult-use legalization question on November ballots. North Dakota voters have twice rejected adult-use measures and lawmakers failed to advance a legalization bill in 2021.  

In a statement, New Economic Frontier Committee Chairman Steve Bakken said the proposal isn’t “just about changing laws – it’s about creating opportunities and bringing our communities together.”   

“We’re incredibly grateful to everyone who made this initiative possible. North Dakotans really stepped up to support this cause – from the businesses that offered their support, to the dedicated circulators who braved all kinds of weather, to every single person who took the time to sign. People are ready for a common-sense approach to cannabis.” — Bakken in a press release 

The initiative needed 15,582 signatures to qualify for the ballot. Jake Mittelsteadt, ballot measure committee member, said the campaign “blew past” the state requirement.  

“We wanted to send a clear message that North Dakota is ready for this change. Even if some signatures don’t make the cut, we’re confident voters will have their say come November.” Mittelsteadt said in a statement. “And while some have raised concerns about the measure not addressing specific tax laws, it’s important to understand that those details are the legislature’s responsibility, not ours. Our job is to bring this issue to the ballot, letting North Dakotans decide on the principle.” 

If approved by voters, the initiative would permit up to seven manufacturing facilities and 18 dispensaries across the state. It includes provisions for secure tracking systems, quality control testing, and limits on purchase amounts, while also addressing impaired driving and workplace safety issues. 

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National Institutes of Standards and Technology Offering Hemp Reference Material

7/11/2024

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The National Institutes of Standards and Technology (NIST) is selling a hemp reference material designed to help laboratories accurately measure key components in cannabis products. The reference materials are meant to help law enforcement agencies accurately distinguish between hemp and THC-rich cannabis products and assist manufacturers and regulatory agencies ensure that hemp products are safe and accurately labeled.   

A 2022 study by NIST found some hemp products were inaccurately labeled and contained more THC than allowed under federal law. 

The NIST Hemp Plant Reference Material includes an information sheet that lists precise amounts of total THC, CBD, and several toxic elements – including arsenic, lead, mercury, and cadmium –  sometimes found in agricultural products, along with uncertainty estimates for each. The reference material can be used for both hemp and THC-rich cannabis products.  

In a press release, Walter Brent Wilson, one of the NIST chemists who developed the new reference material, noted that “A farmer’s crop or a company’s product can be seized or potentially destroyed if it turns out to be a ‘hot’ material, so it’s important to make the correct determination.” 

NIST biologist Colleen Bryan, who was also on the team that developed the reference material, added that the “reference material will help ensure that the cannabis they buy does not contain unsafe levels of toxic elements.”   

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Maryland Cannabis Sales Exceed $1.1 Billion During First Year

7/10/2024

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Maryland Gov. Wes Moore (D) announced on Monday that the state’s total medical and adult-use cannabis sales exceeded $1.1 billion during the adult-use market’s first year of operation, Tri-State Alert reports.

The Maryland Cannabis Administration (MCA) said that since the state launched its adult-use cannabis sales on July 1, 2023, adult-use cannabis sales have totaled more than $700 million and medical cannabis sales reached nearly $400 million.

“Our new adult-use cannabis market isn’t only generating extraordinary economic activity – it’s also helping us build new pathways to work, wages, and wealth for all. Making Maryland more competitive means ensuring that everyone can reap the benefits of Maryland’s economic growth. This important milestone proves how our administration continually – and repeatedly – honors our deep commitment to that mission.” — Gov. Moore, in a statement

MCA Director Will Tilburg said he was “proud” of the agency’s efforts in implementing a “safe and equitable market in Maryland, while simultaneously building a new regulatory agency.”

“As exciting as the past year has been, we expect the year ahead to be even more so, as new social equity businesses bring their passion and innovation to the Maryland market,” Tilburg said in the report.

According to recent data from the state Office of the Comptroller, Maryland collected about $14.7 million in cannabis taxes during the first quarter of 2024.

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Poll Finds Majority of Floridians Back Cannabis Legalization Initiative

7/09/2024

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The constitutional amendment for adult-use cannabis legalization in Florida has support among 64% of voters, according to a recent poll outlined by Florida Politics. In Florida, constitutional amendments require 60% of voters in favor to become law.  

The poll found 100% of respondents aged 18-29 backed the reforms along with 82% of voters 30-39.  

In a statement following the Florida Politics report, Morgan Hill, spokesperson for Smart & Safe Florida said “Floridians want and deserve the same right to consume recreational marijuana that more than half the country already enjoys.” 

“This poll reflects what we at Smart & Safe Florida know to be true: legalizing recreational adult-use marijuana is good for Floridians’ health, safety, and individual freedom.” — Hill in a statement 

Smart & Safe Florida also announced that it was celebrating July as “Freedom Month” by launching a new advertising campaign to support Amendment 3. The $1.1 million radio ad campaign features attorney John Morgan, who led the successful 2016 campaign to legalize medical cannabis.  

The reforms are opposed by Republican Gov. Ron DeSantis; however, his political action committee opposing the initiative had raised just $10,000 by the end of last month and those funds were contributed by just one person – former U.S. Representative from Pennsylvania Keith Rothfus (R).   

A FOX News poll published last month found an even higher level of support for the reforms – 66% in favor and 32% opposed.  

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House Bill Seeks to Expunge Low-Level Federal Cannabis Charges

7/09/2024

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A bipartisan bill in the U.S. House seeks to create an expungement mechanism for low-level, non-felony violations of federal cannabis laws. The Marijuana Misdemeanor Expungement Act, sponsored by Reps. Troy A. Carter Sr. (D-LA) and Kelly Armstrong (R-ND), would create an expedited process to clear non-felony cannabis offenses in the federal system. 

“No one should be in jail just for using or possessing marijuana. This bipartisan bill will restore justice to millions of Americans who have suffered excessive secondary consequences associated with marijuana-related misdemeanors. These misdemeanors, even without a conviction, can restrict the ability to access educational aid, housing assistance, occupational licensing, and even foster parenting. Delivering justice for people who have been impacted by marijuana-related misdemeanors is a vital part of comprehensive cannabis reform.” — Carter in a press release 

In 2022 and 2023, President Joe Biden (D) issued pardons for people convicted of federal cannabis possession crimes; however, the sponsors of the Marijuana Misdemeanor Expungement Act note that Biden’s actions do not expunge records or remove them from public view.     

“Records matter and carrying a low-level non-criminal petty offense on a record could heavily impact a person’s way of life from sustaining employment to applying to new opportunities,” Armstrong said in a statement. “The Marijuana Misdemeanor Expungement Act gives a second chance to non-violent petty marijuana offenders after the sentence is complete and removes barriers to reentry while upholding the rule of law and supporting a more equitable society.” 

Earlier this year, the Justice Department announced plans to move cannabis from Schedule I to Schedule III under the Controlled Substances Act, but that action could take years to take effect. 

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Nebraska Advocates Turn in Petition Signatures for Medical Cannabis Campaign

7/09/2024

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Advocates in Nebraska turned in more than 114,000 signatures for their petition to legalize medical cannabis in the state, the Nebraska Examiner reports. The campaign, led by Nebraskans for Medical Marijuana, needs about 86,500 signatures from registered voters statewide, including signatures from at least 5% of voters in 38 of Nebraska’s 93 counties, in order to put the issue on November ballots.  

In an interview with the Examiner, Crista Eggers, the statewide campaign manager, noted that the campaign “can never have enough” signatures and that the campaign collected signatures “until the very last moment to allow every Nebraskan” that wanted to sign the petition, to sign. 

The current campaign marks the third by advocates in the state. In 2022, the campaign did not submit enough valid signatures to put the issue to voters. In 2020, the state Supreme Court rejected the ballot language, arguing the petition contained two subjects: regulation and legalization. The current campaign split the proposed reforms into two petitions, hoping to meet the Supreme Court’s standards. 

Next, the Nebraska Secretary of State’s Office will distribute signatures to respective county election officials statewide who will have 40 days to verify and return the signatures. The petition language then goes to the state Attorney General’s Office for review.  

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Arkansas Advocates Submit 111,000+ Signatures for Medical Cannabis Expansions Initiative

7/08/2024

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Advocates with Arkansans for Patient Access (APA) last week submitted over 111,000 signatures in support of putting an initiative to expand the state’s medical cannabis program on the November ballot, according to a 5NEWS report.

If passed by voters, the ballot initiative would allow registered patients to grow medical cannabis at home. It would also certify additional health providers including osteopathic doctors, nurse practitioners, physician’s assistants, and pharmacists to recommend patients for the program, and allow such health providers to recommend medical cannabis treatments to anyone they think would benefit from the program. The initiative also includes telemedicine expansions, permits out-of-state patient IDs, increases the registration period for patients from one year to three years, and removes program application fees for patients.

“Our canvassers found voters eager to place an amendment on the ballot that will eliminate barriers to access and make it less expensive to acquire and keep a medical marijuana card. As we move into the fall, we look forward to educating Arkansans all across the state about this amendment and the medicinal benefits of marijuana.” — Bill Paschall, APA campaign committee member, via 5NEWS

The medical expansions ballot initiative was initially rejected by the attorney general but advocates updated and resubmitted the proposal. In February, the attorney general approved the initiative for the signature-gathering process.

Meanwhile, cannabis advocates filed another cannabis-related amendment in March — one seeking to legalize adult-use cannabis in the state — but the proposal’s ballot wording was rejected by the attorney general’s office.

Arkansas voters rejected an adult-use cannabis legalization initiative in 2022.

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Minnesota Brewery Selling Hemp-Infused THC Drinks on Tap

7/08/2024

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Minnesota’s Headflyer Brewing in northeast Minneapolis this month started offering hemp-derived, THC-infused beverages on tap, CBS News reports. The offering is newly legal under a state regulation that took effect on July 1.

Hemp-derived THC drinks were previously required to be sold in cans but under the new rules, companies that display the necessary information normally appearing on product labels can offer their drinks on tap.

Headflyer’s taproom manager Dan Schnabel said in the report that the brewery had been anticipating the rule change and moved quickly to adopt the service of on-tap THC drinks.

“Having it on tap gives us so many different options for our consumers to taste it, to try it, to enjoy one while they’re here on site. It’s more approachable because not everybody necessarily wants to come in and purchase an entire can and drink an entire can.” — Schnabel, via CBS News

While adult-use cannabis has been legalized in Minnesota, the state’s cannabis industry is not expected to launch until early next year, at the soonest. In the meantime, the low-dose hemp THC industry legalized by state lawmakers in 2022 has been steadily growing.

Minnesota officials last week announced the state had earned more than $10 million in taxes from the hemp-derived THC market since its launch two years ago.

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Delaware Officials Warn of Scam Targeting Potential Cannabis Social Equity Applicants

7/05/2024

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Delaware’s Office of the Marijuana Commissioner (OMC) is warning of scams related to social equity cannabis licenses. OMC said out-of-state entities are contacting potential social equity applicants and trying to deceive them into paying to help secure an adult-use cannabis license. 

Delaware lawmakers legalized adult cannabis use last year but have not yet issued any licenses. 

“Here’s how to protect yourself:
– Do not pay upfront fees for help obtaining a social equity license.
– Beware of unsolicited calls, postcards or emails promising to guarantee a license.
– Trust official sources for information on social equity licensing. Refer to the OMC website or contact them directly for guidance.
– Consult with an attorney before signing any agreements or contracts.” — OMC in a press release 

The agency is asking individuals who are approached by scammers to report the incident to OMC. It indicated that the scams would be investigated by the state Department of Justice and Division of Alcohol and Tobacco Enforcement.  

Other states have warned of similar scams targeting would-be social equity applicants, including Illinois, Maryland, Massachusetts, Missouri, and Vermont. 

Delaware lawmakers last year proposed a $4+ million budget for the state’s adult-use cannabis industry roll-out, and last month passed a bill to establish protections for banks and other financial institutions that work with state-licensed cannabis companies.

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Minnesota Raises At Least $10M in First-Year Taxes for Hemp-Derived THC

7/05/2024

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The Minnesota Department of Revenue says the state has generated $10,022,635 in taxes on hemp-derived THC products since the market launched nearly a year ago, according to a MinnPost report.

Minnesota legalized cannabis use for adults last year but the state’s full adult-use industry is not expected to launch until 2025. Lawmakers had previously legalized low-dose cannabis edibles and other products, and the market for hemp-derived cannabinoid products has steadily grown. Officials said the state earned $1,217,450 from 1,873 tax-paying businesses in May alone — and with the monthly taxes now exceeding $1 million per month, and with a 10% tax rate on the sale of hemp-derived cannabinoid products, officials estimated the hemp products market at about $130 million annually.

Some industry operators suggested the state’s numbers seemed low to them:

“$130 million from scratch, that’s pretty good but I think it’s underrepresented. To me they sound low based on what I know.” — Shawn Weber, president of the Minnesota Cannabis Growers Cooperative and co-owner of Crested River Cannabis, via MinnPost

Under the state’s low-potency hemp regulations, companies selling hemp products were required to register with the Department of Health’s Office of Medical Cannabis, which merged on Monday with the Office of Cannabis Management, the report said.

Twenty percent of the state’s hemp-derived tax dollars go to local governments, with counties getting half that money and city governments getting the other half. Counties with more licensed cannabis businesses will see more tax distribution.

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Michigan Bill Seeks to Merge Adult-Use and Medical Cannabis Regulations

7/04/2024

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Bi-partisan legislation introduced in Michigan aims to “modernize” the state’s cannabis laws by merging regulations for the adult-use and medical cannabis industry. The reforms would repeal the state’s 2016 Medical Marihuana Facilities Licensing Act, and the bill’s sponsors say the current dual regulatory system “has created burdens for businesses as well as the state’s Cannabis Regulatory Agency.”   

In a statement, State Rep. Graham Filler (R), said “Streamlining and simplifying these laws is a win for everyone involved – from businesses to patients to regulators.”   

“By modernizing the regulatory process, we can help businesses cut costs and increase efficiency.” — Filler in a press release 

Under the current regime, cannabis licensees must renew both a medical and recreational license annually to grow, process, transport, or sell cannabis products. The sponsors say the bill will reduce costs for businesses and improve government efficiency by requiring only one license per activity under the state’s cannabis legalization law while not making any changes to the system for medical cannabis patients and caregivers under the state’s 2008 medical cannabis law. 

State Rep. Jimmie Wilson, Jr. (D) said the proposal “is about making Michigan an attractive and stable place for marijuana businesses to thrive.”   

“A single, cohesive regulatory framework will support our growing economy, ensure the safety and quality of marijuana products, and maintain access for medical marijuana patients,” he said in a statement. “This is a forward-thinking approach that positions Michigan as a leader in the industry.” 

The bills were referred to the House Regulatory Reform Committee on June 27.  

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Lawsuit Challenges Wyoming’s Delta-8 Ban

7/04/2024

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A lawsuit filed Monday in the U.S. District Court for Wyoming is challenging a recent state law banning hemp-derived cannabinoids, such as delta-8 THC, Cowboy State Daily reports. The plaintiffs include 10 hemp businesses and one individual hemp seller who claim the law is unlawful under the 2014 federal Farm Bill which legalized hemp and the 2018 update to the law which prohibits states from blocking interstate commerce of hemp or hemp products. 

“(The new law) creates insurmountable confusion around criminal liability and destroys the mere act of processing hemp into consumable products. (We) face irreparable harm unless this court enjoins (the law).” — The lawsuit via Cowboy State Daily  

The lawsuit names Gov. Mark Gordon (R), who signed the bill into law in March, the state attorney general, the state director of agriculture, and all of Wyoming’s elected prosecutors as defendants.

The plaintiffs contend that the law unconstitutionally lets the state interfere with federal laws, violating the U.S. Constitution’s Commerce Clause, and that the law threatens their businesses “with extinction” by recriminalizing the products, which have been legal in Wyoming since 2017. 

The lawsuit asks the judge to block the law from taking effect and declare their points correct and the state law wrong.    

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California Issues Five Cannabis Product Recalls Due to Pesticides

7/03/2024

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California officials this week announced product recalls for five cannabis products by West Coast Cure (WCC) including four vape pens and a vape cartridge, MJBizDaily reports.

The order marks the latest recalls over pesticide-related concerns after an independent report last month found widespread pesticide contamination throughout California’s adult-use cannabis industry.

The Department of Cannabis Control (DCC) on Tuesday announced recalls for the following WCC products:

  • Birthday Cake, 1-gram Curepen
  • Lemon Cooler, 1-gram Curepen
  • Lucky Charmz, 1-gram Curepen
  • Slymer, 1-gram Live Resin Cartridge
  • Watermelon Sorbet, 1-gram Curepen

The products were found to contain the banned pesticide chlorfenapyr, which is typically used to combat greenhouse pests like caterpillars or mites.

“Today’s recall is part of the Department’s ongoing efforts to remove products from the marketplace that contain pesticides.” — DCC spokesperson David Hafner, via MJBizDaily

WCC said in a press release on Tuesday that all of the brand’s retailing products have been deemed compliant by state-licensed cannabis testing labs, and that the company conducts pre-production and pre-packaging quality control processes. The company also criticized officials over a perceived lack of standardized procedures for compliance testing.

“At the end of the day, West Coast Cure is not a testing laboratory, nor are we permitted to be one by California regulations,” WCC said.

Officials recalled another cannabis oil cartridge by WCC on June 25 due to chlorfenapyr contamination, according to the report. Additionally, officials on June 12 posted a voluntary recall for a specific batch of WCC cannabis flower due to inaccurate labeling.

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Florida Governor’s Cannabis Opposition Campaign Has Only Raised $10,000

7/03/2024

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Florida Gov. Ron DeSantis’ (R) new political action committee formed to oppose the state’s upcoming cannabis legalization ballot initiative has raised just $10,000 as of last week, according to a Florida Politics report.

While the organization was formed only five weeks ago, its slow fundraising start could signal the general disinterest in the anti-cannabis campaign. Additionally, the campaign is now set to square off against a multi-year legalization effort that has raised more than $60 million.

“We are working with a lot of stakeholders who are interested in making sure that we defeat Amendment 3, which would basically do marijuana, wherever you want, just smoke it, take it. And it would turn Florida into San Francisco, or Chicago, or some of these places. We already have medical marijuana, it’s out there. But we got to keep our streets clean, we cannot have every town smelling like marijuana.” — DeSantis, via Florida Politica

Campaign finance records show the $10,000 came from a sole contributor, the former U.S. Representative from Pennsylvania Keith Rothfus (R), Marijuana Moment reported. While in office, Rothfus voted repeatedly against protections for state-level medical cannabis programs and opposed cannabis banking reforms and policies to relax the Veterans Affairs’ medical cannabis rules.

Florida’s proposed ballot initiative would amend the state Constitution to legalize cannabis for adults aged 21 or older; adults would also be allowed to purchase cannabis from the state’s existing medical cannabis dispensaries. Under state law, constitutional amendment ballot initiatives require at least 60% voter support to pass.

A Fox News poll last month found that two-thirds (66%) of Florida voters support the state’s upcoming cannabis legalization bid.

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Delaware Lawmakers Pass Bill to Protect Financial Institutions that Serve Cannabis Clients

7/01/2024

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Delaware lawmakers last month passed a bill that provides protections for banks and other financial institutions to serve cannabis businesses as the state prepares to launch its adult-use cannabis program. The law clarifies that providing financial services to legal cannabis businesses is lawful under state law.   

In a statement, State Treasurer Colleen Davis called the legislation “a critical step forward for Delaware’s cannabis industry.”  

“By ensuring safe access to banking services, we are empowering legitimate businesses to operate transparently and securely.” — Davis in a press release 

State Rep. Ed Osienski (D), one of the bill’s sponsors, said in a statement that in other states that have legalized cannabis for adult use, “dispensaries and banks alike struggling with legal uncertainty surrounding financial and accounting services for cannabis businesses.”   

“This uncertainty not only undermines the operations of state-compliant dispensaries but also hinders their access to basic business functions such as access to banking, acquiring loans, or paying taxes,” Osienski said. “We want Delaware’s safe and regulated industry to out-compete the illegal market. By providing dispensaries with a secure avenue to banking and compliance services, we empower them to contribute positively to our economy, keep costs down for the industry and customers, employ local talent, and fulfill their tax obligations.” 

State Sen. Trey Paradee (D), who sponsored the legislation in the Senate, added “At the end of the day, cannabis retailers in Delaware are small businesses.”  

“They will be in our communities. They will hire Delawareans. They will pay their taxes. They will contribute to the economic development of this state,” Paradee said in a statement. “But with an over-reliance on cash-transactions, retailers are at a disadvantage in terms of their banking, compliance, and safety needs. With the passage of this legislation, the state can ensure that these types of businesses have a clear path towards access to those critical services.”  

The bill still requires final approval from Gov. John Carney (D). 

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