Green Thumb Industries Acquires One of Two Minnesota Vertical Licensees

1/04/2022

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Chicago, Illinois-based Green Thumb Industries Inc. last week closed on its acquisition of LeafLine Industries, marking the firm’s expansion into Minnesota. The deal gives Green Thrumb one of two vertical licenses in Minnesota, an operating cultivation facility, and five open retail locations.

The takeover also increases Green Thumb’s national presence to 15 states with a total of 73 operational retail locations. The deal gives Green Thumb the opportunity to open up three more additional retail locations in Minnesota.

In a statement, Green Thumb Founder and CEO Ben Kovler noted that Minnesota regulators had recently approved infused cannabis products, including gummies and chews, for the state’s medical cannabis program. State officials have also indicated that rulemaking for flower products is currently underway.

Green Thumb said there are about 29,000 registered medical cannabis patients in the state.

“We are excited to enter the Minnesota medical market and broaden access to cannabis products for Minnesota patients. We look forward to caring for LeafLine’s existing patients while ensuring a seamless transition.” — Kovler in a press release

Green Thumb indicated that, with the acquisition, the company has cannabis operations to serve more than half of the U.S. population, including California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Virginia.

Last summer, Green Thumb acquired Dharma Industries — one of Virginia’s four medical cannabis processing companies.

The terms of neither the LeafLine nor the Dharma transactions were disclosed.

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California Accepting Applications to Waive Cannabis Equity License Fees

1/04/2022

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The California Department of Cannabis Control announced on Saturday that they are now accepting applications for fee waivers for equity licensees. To be eligible, businesses must have 50% equity applicant ownership and have, or expect to have, gross annual receipts of $1.5 million or less.

Equity applicants in California must check at least one of the following: they were arrested for cannabis prior to November 8, 2016; their household income is less than or equal to 60% of the local median income where they live; and/or they must have lived five years between 1980 and 2016 in a neighborhood disproportionately affected by the war on drugs.

To find out more about the program, potential applicants can visit California’s cannabis website cannabis.ca.gov, the agency said in a press release.

The aid comes just in time for some California adult cannabis licensees. Last month, more than 30 cannabis businesses and advocates sent a letter to Gov. Gavin Newsome (D) and legislative leaders warning of an industry-wide “collapse” due to excessive taxes and fees. In their appeal, they wrote:

“The California cannabis system is a nation-wide mockery; a public policy lesson in what not to do. Despite decades of persecution by the government, we have been willing and adaptable partners in the struggle to regulate cannabis. We have asked tirelessly for change, with countless appeals to lawmakers that have gone unheard. We have collectively reached a point of intolerable tension, and we will no longer support a system that perpetuates a failed and regressive War on Drugs.”

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Ireland’s Cannabis Possession Charges Drop Nearly 50% Following Criminal Reforms

1/04/2022

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The number of people in Ireland who were issued a summons or charged with cannabis possession fell nearly 50% following reforms that allow for possession to be dealt with by way of caution, rather than prosecution, the Irish Times reports. According to the Garda Press Office, by December 14, 2021, 5,957 people were issued a summons or charged with simple possession in Ireland, down from 11,127 in 2020, and 9,923 in 2019.

Figures from the Garda from last year report that as of December 14, there were 60 charges related to the cultivation of cannabis or poppy plants — which are used in opium production — a decline from 178 the previous year. There were 1,283 charges or summonses for possession of drugs for sale issued in 2021, compared to 1,968 in 2020, according to Garda data outlined by the Times.

The reforms were enacted in December 2020 and only covers simple possession of cannabis flower or concentrates. The program is operated by the Office of the Director of Public Prosecutions.

Ireland legalized cannabis for medical use in 2020, and the first product allowed under the program – CannEpil, an oral-based solution intended for drug-resistant epilepsy – was introduced last October, according to the Times.

When Irish Health Minister Simon Harris last year announced the five-year medical cannabis pilot program he indicated there were “no plans” to legalize cannabis in the nation.

In December, Malta became the first European Union nation to fully legalize cannabis. Lawmakers in Germany, Luxembourg, and Switzerland are considering their own reforms, while Italy is expected to hold a referendum on the issue.

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THC-Rich Cannabis Oil Could Be Effective Autism Treatment

1/03/2022

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Researchers at Tel Aviv University alleviated autism symptoms in animal models using medical cannabis oil, according to a study published in the journal Translational Psychiatry outlined by Israel 21c. Shani Poleg, the Ph.D. candidate who led the research, said the team found that cannabis oil had “a favorable effect on compulsive and anxious behaviors in model animals.”

“According to the prevailing theory, autism involves overarousal of the brain, which causes compulsive behavior. In the lab, in addition to the behavioral results, we saw a significant decrease in the concentration of the arousing neurotransmitter glutamate in the spinal fluid — which can explain the reduction in behavioral symptoms.” — Poleg to Israel21c

The researchers found that CBD treatment alone had no impact on the behavior of the animal models, while THC-rich cannabis oil produced “equal or even better behavioral and biochemical effects.”

“We observed significant improvement in behavioral tests following treatments with cannabis oil containing small amounts of THC,” Poleg said in the interview, “and observed no long-term effects in cognitive or emotional tests conducted a month and a half after the treatment began.”

The study authors note that treating children with autism spectrum disorder using cannabis products “raises medical and ethical questions” since many patients are young children.

“During young childhood and adolescence, multiple neurological systems, such as the glutamatergic, dopaminergic and endocannabinoid systems, rearrange and maturate,” the authors write. “Data show that some cannabinoids, THC among them, might harm the developing brain.”

The authors said the study results “question the necessity of high doses of CBD in medical cannabis oils designated for alleviating [autism spectrum disorder] core symptoms, and suggest that a medical cannabis oil that contains relatively small doses of THC is preferable, due to an additional plausible effect on social behavior.”

A separate study conducted by researchers at Israel’s Ben-Gurion University of the Negev and Soroka University Medical Center published last year found more than 80% of parents of autistic children reported significant or moderate improvement in their child while using CBD-rich cannabis oils.

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42% of New York Municipalities Ban Cannabis Retail

1/03/2022

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The deadline for New York municipalities to opt out of allowing cannabis business operations ended on December 31 with 642 towns, villages, and cities choosing to bar dispensaries and 733 opting out of consumption lounges, according to Rockefeller Institute of Government data. Some of the communities chose to opt out before the deadline in order to develop their own rules and regulations before opting back in since once a community opts in it cannot opt back out.

About 900 municipalities declined to make a “yes” or “no” decision by the deadline, which automatically opts them in – the state has more than 1,500 towns, villages, and cities. The opt-out rate for dispensary operations in the state is about 42% with the opt-out rate for on-site consumption at about 48%. Comparatively, the opt-out rate for the industry in neighboring New Jersey is about 70%.

The highest opt-out rate in the state is Putnam County where about 78% of communities chose to opt out of dispensaries with 88% rejecting on-site consumption.

The city council of Albany – the state capital – voted to opt into both dispensaries and on-site consumption, along with the capital region cities of Troy, Schenectady, and Saratoga Springs. The city councils of the vacation towns Lake George and Lake Placid have voted to opt out.

Many municipalities indicated they opted out due to lack of guidance from the New York Office of Cannabis Management and additional directives from the state could lead to reversals from those communities that have decided to implement a ban.

 

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Missouri Medical Cannabis Sales Reach $200M in 14 Months

1/03/2022

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Medical cannabis sales in Missouri have surpassed $200 million during the program’s first 14 months, according to state Department of Health and Senior Services data outlined by the eMissourian. In all, there are more than 160,000 medical cannabis patients in the state.

So far, there are 180 dispensaries, 58 manufacturing facilities, 41 cultivators, 19 transportation-related businesses, and eight testing laboratories licensed by the state. In 2020, however, 85% of 2,200 medical cannabis commercial license applications in the state were denied, hemp farmer Michael Desmond wrote in an op-ed in the Missouri Independent.

Kathleen Beebe, a spokeswoman with Missouri Health and Wellness, told eMissourian that the industry has, so far, created 6,000 jobs in the state. She added that she expects the number of registered patients in the state to “dramatically increase” as people gain an understanding of how the cannabis plant could help them.

Legal cannabis advocates in the state, led by Legal Missouri 2022, are campaigning to put an adult-use question on this year’s midterm ballots and must collect 175,000 signatures to put the issue to voters. The medical cannabis initiative was approved by 66% of Missouri voters in 2018.

The legalization proposal, a constitutional amendment, would create an automatic expungement program for citizens convicted of nonviolent cannabis-related offenses. It would tax adult-use cannabis sales at 6%, with revenues earmarked for the state health department, veteran care, drug addiction treatment, and the state’s public defenders program. Under the proposal, cities could add an additional 3% sales tax if they choose.

The amendment would grant 144 new cannabis business licenses via lottery, with 66% of them set aside for cultivation companies and 33% for dispensaries.

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Colorado Gov. Pardons More Than 1,300 Cannabis Convictions

12/31/2021

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Colorado Gov. Jared Polis (D) announced yesterday that he signed an executive order to pardon 1,351 individuals who had been convicted of cannabis possession prior to the state’s historic legalization reforms in 2012.

“Adults can legally possess marijuana in Colorado, just as they can beer or wine. It’s unfair that 1,351 additional Coloradans had permanent blemishes on their record that interfered with employment, credit, and gun ownership, but today we have fixed that by pardoning their possession of small amounts of marijuana that occurred during the failed prohibition era.” — Gov. Polis, in a press release

The cannabis pardons covered state-level convictions for people who were caught possessing up to two ounces of cannabis, which coincided with an update to Colorado’s cannabis laws earlier this year that raised the legal purchasing and possession limit for adults from one to two ounces. The pardons do not cover people who were convicted of municipal cannabis crimes or people who were arrested — or issued a summons — for cannabis possession but who were not convicted.

People who are unsure whether a conviction on their record was pardoned can request confirmation of a pardon through the Colorado Bureau of Investigations website, according to the release. If they receive a pardon, individuals who were once convicted of cannabis possession will no longer see the conviction on their criminal history through the state’s records checking system.

Colorado voters opted to legalize adult-use cannabis in 2012. The reforms took effect in 2014, making Colorado the first state to end cannabis prohibition.

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Study: Cannabis Decriminalization Reduces Arrest Rate Racial Disparity

12/31/2021

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A new study published in the journal Social Science & Medicine found that cannabis decriminalization policies reduce racial disparity in cannabis possession arrests, Forbes reports.

Researchers at the University of California San Diego based the study on the Federal Bureau of Investigation’s Uniform Crime Report from 37 states between 2000 and 2019. The researchers found that in 11 states with new cannabis decriminalization policies, possession arrest rates dropped 70% for adults and 40% for youth. These reductions coincided with a 17% drop in the racial disparity in cannabis possession arrests for adults; however, while youth arrests dropped, there was no positive adjustment between Black and white youth cannabis possession arrests.

It has been proven that Black people are more likely to be arrested for cannabis-related crimes than white people, despite Blacks and whites consuming cannabis at similar rates.

“Cannabis decriminalization seemed to be particularly beneficial to Blacks, who were suffering the most from the adverse consequences of criminal penalties. Taken together, we recommend that lawmakers and public health researchers reconsider cannabis decriminalization as an option of cannabis liberalization, particularly in states concerning the unintended consequences and implementation costs of medical and recreational cannabis legalization.” – “Cannabis decriminalization and racial disparity in arrests for cannabis possession,” Social Science & Medicine, Jan. 2022

When the researchers looked at medical cannabis and adult-use laws, they found medical cannabis laws had no effect on overall arrest rates but adult-use laws did lead to a drop in possession arrests for both white and Black people. However, the researchers found adult-use laws did not have an effect on the racial divide as it relates to cannabis possession arrests. This may be because many states decriminalized cannabis before their adult-use laws were enacted, while another reason may be because most states legalized cannabis sometime after 2016 and the study only uses data through 2019, according to the report.

 

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USDA Approves New York Hemp Plan

12/30/2021

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The U.S. Department of Agriculture (USDA) has approved New York’s hemp plan and the agency is now accepting applications under the new regime. All currently licensed growers must reapply under the program to grow hemp next year.

The new rules include a Federal Bureau of Investigation background check requirement within 60 days of application submission; end-product and field reporting; inspections by the state Department of Agriculture; pre-harvest plant and post-harvest laboratory testing; and penalties for cultivating THC-rich products, including license suspension or revocation.

Producers must also send reports to the USDA and the Farm Service Agency (FSA).

In a press release, state Agriculture Commissioner Richard A. Ball said hemp cultivators “will have stability and consistency in regulations moving forward, with continued guidance and support from the department.”

“New York State has been a leader in the hemp industry since the launch of its pilot program, with producers registered to grow industrial hemp on 30,000 acres.” — Ball in a statement

Last year, the New York Agriculture Department said the state would not submit a hemp plan to the USDA until it changed certain program requirements forcing growers to apply to the USDA Agricultural Marketing Service to receive a hemp production license.

Ball had described federal hemp testing and plant disposal regulations outlined in the 2018 federal Farm Bill as “unrealistic” and said they “impose unreasonable burdens on growers and any state interested in administering a compliant program.” Prior to the 2018 reforms, individual states operated their own hemp programs free from federal interference under a plan approved by federal lawmakers in 2014.

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New Oregon Cannabis Rules Include Delta-8 Testing

12/30/2021

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The Oregon Liquor and Cannabis Commission (OLCC) on Tuesday approved new rules for some products sold in the state, including limiting hemp-derived edible products to 2 milligrams of THC per serving and up to 20 milligrams of THC per container.

The regulators also approved a rule requiring artificially derived cannabinoids — such as delta-8 products — to go through the ordinary regulatory review required for dietary supplements or food products.

The OLCC said in a press release that it had worked with legal cannabis industry operators over the last 18 months to develop the new regulations, most of which are set to take effect January 1, 2022, while other regulations won’t take effect until 2023.

Steve Marks, OLCC executive director, said that the new regime tries to balance “consumer health and safety, interests of small and large operators in our industry, and public safety concerns around loopholes in the Federal Farm Bill of 2018, and the illicit farm production taking place in Oregon.”

State lawmakers recently passed a bill dedicating $25 million to combat illegal cannabis grows in the state while an October OLCC report found that 54% of hemp farms in southern Oregon were actually producing THC-rich cannabis illegally.

The new rules also increase adult-use purchase limits to up to two ounces of flower – up from one ounce – and increase edible concentrations from 50 milligrams of THC per package to 100 milligrams per package beginning April 1, 2022.

Home delivery will also be allowed across city and county lines as long as local authorities approve of it. Additional rule changes include reducing the time and cost for licensees to report plant tagging and harvests into the state’s Cannabis Tracking System and improving licensees’ ability to self-distribute their products.

In a statement, OLCC Commissioner Matt Maletis said the new rules “may not make everyone happy” but they are “a pathway” that he believes “solves a lot of the issues” currently facing the state’s industry.

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Mississippi Gov. Threatens to Veto Medical Cannabis Reform Bill

12/30/2021

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Mississippi Gov. Tate Reeves (R) said he will not support the Legislature’s medical cannabis reform bill because the proposed patient daily limits are too high, WCBI reports. The governor says he would like to see a patient’s daily allowance cut in half from 3.5 grams daily to 1.75 grams.

Mississippi voters passed the medical cannabis initiative in 2019 but it was struck down by the state Supreme Court earlier this year on a signature-gathering technicality. Prior to the Court invalidating the law, lawmakers began work on the backup bill which is now under veto threat by Reeves.

If Reeves does ultimately decide to veto, lawmakers may take action to protect the bill they have spent all summer negotiating.

“It wouldn’t surprise me if the legislature overrode the veto,” Sen. Brice Wiggins, chairman of the Senate Judiciary Committee Division A and a congressional candidate, said in a Y’all Politics report.

Other provisions in the bill include a $5 per ounce excise tax at the point of manufacture and Mississippi’s 7% sales tax would apply to all medical cannabis purchases. Grow facilities would be limited to 100,000 square feet or larger, but the reported square footage must include all vertical shelves and growing areas. Licenses will cost producers $150,000 a year, and be issued through the Department of Health, not the department of Agriculture or Commerce, the Northeast Mississippi Daily Journal reported in October.

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California City Approves Cannabis Events at Parks

12/30/2021

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The Lompoc, California City Council last week voted to allow up to two cannabis-related events per year in any of the three city parks: Ken Adam, River Bend, or River, Santa Ynez Valley News reports. No smoking will be permitted at events at Ken Adam Park until the brush can be sufficiently cleared, and city staff will review each event within 90 days after it ends to better understand the impacts of the events.

The city already has an ordinance banning the smoking of any kind in its public parks; however, an exception for cannabis would be made during the events, while tobacco will remain prohibited.

The ordinance, which was approved 3-2, will be reviewed by the city council after one year. It requires event organizers to provide their own security for the events — recommended by city managers — and staff an EMT.

The move by the council follows a September announcement by the California State Fair that the 2022 iteration will include a cannabis flower competition. California Exposition & State Fair Board Director Jess Durfee said state fair officials “are pleased to celebrate” the state’s legal cannabis industry” adding that the fair “has always been a first mover, leading the State Fair circuit with innovative programming and large-scale competitions that celebrate the best the state has to offer.”

New York is the only state to generally allow public cannabis use in its legalization law, which led to its State Fair officials allowing cannabis smoking anywhere on the fairgrounds tobacco smoking was allowed, but with bans on smoking cannabis at select parts of the grounds, including picnic areas, inside buildings, and in kiddie land. However, following complaints, Gov. Kathy Hochul (D) called for a review of that policy for the 2022 event.

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New Mexico Issues Cannabis Industry Rules

12/29/2021

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New Mexico officials have released the rules for the state’s forthcoming adult-use cannabis industry and they largely mirror the basic guidelines laid out by the Cannabis Control Division (CCD) earlier this year, the Santa Fe New Mexican reports.

In a statement, Cannabis Control Division Director Kristen Thomson said the rules were devised “using best practices and input from stakeholders” and that officials drew on “diverse experience and knowledge to create thoughtful rules that set the highest professional standards and safety guidelines for New Mexico’s medical cannabis program and the adult-use cannabis industry.”

“Every day brings us closer to the first adult-use cannabis sales in New Mexico. Thanks to the Cannabis Control Division’s open and transparent rule-making process over the past six months, businesses and consumers can be confident that all necessary support and protection is in place to ensure a thriving cannabis industry in our state.” — Thomson in a press release

Under the regulations, adult-use cannabis businesses may not provide free samples to customers but under certain circumstances, medical cannabis dispensaries may offer samples for patients.

Other basic guidelines include security measures, proof of water rights, workplace training programs, facility diagrams, and record keeping. Retailers must also destroy tested batches of cannabis that do not meet the state’s health and safety standards. The rules also set guidelines for cannabis couriers. Under New Mexico legalization law, adults 21-and-older may only purchase up to two ounces of flower or 16 grams of concentrates.

The CCD said more than 300 producer and retailer licenses have been submitted so far to regulators, adding that adult-use sales in the state “will be ready” for April 1, 2022, as required by law.

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Colorado Cannabis Sales Set $2.19B Record in 2020

12/29/2021

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Total Colorado cannabis sales reached $2.19 billion in 2020, according to state Marijuana Enforcement Division (MED) data outlined by The Center Square. The near $1.75 billion in adult use and $442.5 million in medical cannabis sales mark new sales records in the Centennial State.

The adult-use figures represent a 24% increase over the 2019 total of $1.41 billion.

Colorado cultivators grew about 1.24 million plants in 2020, which equates to 662.3 metric tons of consumer product, the report said. The average price per gram for adult-use cannabis, however, increased 20% from $3.99 in 2019 to $4.80 last year. The price-per-gram for medical cannabis also increased by 26% to $3.80, the report says.

The MED report suggests that the coronavirus pandemic increased demand for both adult-use and medical cannabis “as household spending shifted to food, drink, and entertainment consumed at home.”

Earlier this month, the Colorado Department of Revenue released its Average Market Rate report for retail cannabis and found price decreases across five of seven cannabis categories: flower prices fell $948 per pound, trim fell $354 per pound, bud and trim for extraction dropped $345 per pound and $253 per pound, respectively, and wet whole plant prices decreased $172. The price per seed increased to $4, while the price for an immature plant stayed steady at $10. The state uses the quarterly average market prices for excise tax rates.

Starting in January, new purchase limits for medical cannabis patients will take effect under a bill approved by lawmakers in November.

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41% of Australians Support Cannabis Legalization

12/29/2021

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A new survey has found 41.1% of Australians believe cannabis should be legalized, representing a significant rise in support from 2013 when 25.5% of respondents backed the reforms, the Guardian reports. The National Drug Strategy Household Survey also found an increase in the number of Australians who had used cannabis at some point in their lives from 33.5% in 2001 to 38.1% in 2019.

Don Weatherburn, a professor at the University of NSW’s National Drug and Alcohol Research Centre and a co-author of the analysis, suggested that cannabis use in the nation has “gradually become more prevalent, probably because the law has become less draconian.”

“Most states now have some form of cannabis cautioning scheme, which makes the drug somewhat less stigmatized than it had been back in the 80s and 90s. … It’s also partly true that the people who first tried cannabis are now in positions of authority in and around government and major institutions.” — Weatherburn to the Guardian

Weatherburn added that the survey also found that citizens of Australia have shifting attitudes toward criminal justice and drugs, supporting “treatment and education” over “prison and punitive sanctions.”

“Even though people are not supporting the legalization of these drugs,” he said in the report, “they are supporting a different kind of approach to the traditional imprisonment, high fines, [and] supervised orders.”

Separately, a University of South Australia study published in Environmental Science and Technology Letters in August found cannabis use in Australia spiked during coronavirus-related lockdowns last year.

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Maine Appeals Ruling to Allow Out-of-State Cannabis Business Ownership

12/29/2021

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The state of Maine and the Maine Cannabis Coalition (MCC), a top cannabis trade group, are appealing a judge’s ruling that opens the door for out-of-state ownership in Maine’s medical cannabis market, the Portland Press Herald reports. Seen as having nationwide significance — there are a number of U.S. cannabis markets that only allow in-city or in-state ownership — the case began with a lawsuit challenging Maine’s residency requirement for cannabis licenses.

The state agreed to drop the residency law for their adult-use system last year but have continued to fight the change within their medical cannabis market, the report says.

The plaintiffs, the Wellness Connection which is owned by three Mainers, and their parent company, High Street Capital Partners of Delaware, filed the lawsuit last year against Commissioner of the Maine Department of Administrative and Financial Services Kirsten Figueroa on the grounds the in-state ownership requirement violates the interstate commerce clause of the U.S. Constitution by restricting the flow of investment and interfering with their ability to function. Maine argued that due to federal prohibition, there is no medical cannabis interstate commerce market, therefore, the so-called “dormant commerce clause” does not apply in this case.

The appeal will be heard by the First U.S. Circuit Court of Appeals, although oral arguments have not yet been scheduled, the report says.

U.S. District Judge Nancy Torresen sided with the plaintiffs in August but said Maine’s argument was “not without logic.” However, the judge noted that the state does not prohibit non-Mainers from purchasing medical cannabis or taking it home with them.

“The notion that the medical marijuana industry in Maine is wholly intrastate does not square with reality,” Torresen wrote.

“I recognize that none of the courts that have confronted this specific constitutional issue have rendered final judgments, and it also seems that no circuit court has addressed it,” the judge wrote in August. “But given the Supreme Court’s and First Circuit’s unmistakable antagonism towards state laws that explicitly discriminate against nonresident economic actors, I conclude that the Dispensary Residency Requirement violates the dormant Commerce Clause.”

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Oregon Dedicates $25M to Combat Illegal Cannabis Grows

12/28/2021

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Oregon’s Legislature has approved $25 million in funding to combat the illegal cultivation of cannabis in the state, the Associated Press reports. The funds will be used by law enforcement agencies and community organizations to pay for the costs of busting industrial-scale, unlicensed, operations.

The bill approved by lawmakers and signed by the governor establishes the “Illegal Marijuana Market Enforcement Grant Program” which will be administered by the Oregon Criminal Justice Commission. The bill dedicated $5 million for enforcing water rights.

Jackson County Sheriff Nathan Sickler told lawmakers the cartels “have a business model” for the illegal grows:

“Put up more cannabis illegal grows than law enforcement can ever get. They know we’re going to get some, but they know we can’t get it all.” — Sickler via the AP

Democratic state Sen. Jeff Golden described some rural areas in the state as “military-weapons zones, like the ones we usually associate with failed states.”

“Illegal cannabis operations in southern Oregon have been using our limited water supply, abusing local workers, threatening neighbors, and negatively impacting businesses run by legal marijuana growers,” he said in the report.

A farmer in southern Oregon testified that an illegal cannabis farm siphoned water from the creek he uses to irrigate his crops and dried it up. The farmer said that local landowners sell or lease property to bad actors.

“If somebody walks onto your property with a suitcase with $100,000 in $20 bills, you kind of know they’re not on the up and up,” the farmer said in an interview with the AP who chose to remain anonymous because of fear of retribution from cartels. “And if you take that money and allow them to do something on your land, you should probably anticipate that they’re there to break the law.”

Officials claim that many of the illegal cannabis operations are disguised as hemp farms, and an Oregon Liquor and Cannabis Commission (OLCC) report released last October found that 54% of hemp farms in southern Oregon were actually growing THC-rich cannabis.

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Cannabis Tax Revenue Eyed for Universal Basic Income In Rochester, NY

12/28/2021

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The mayor-elect of Rochester, New York wants to use taxes from adult-use cannabis sales to fund a guaranteed basic income program that would give eligible participants monthly cash payments, Business Insider reports. The city has already approved an income program, but it relies on federal dollars and Malik Evans believes using cannabis tax revenues would be a more sustainable source of funding.

“Community folks told me, ‘this is a big source of revenue, and Black and brown people are prosecuted worse than others because of marijuana.’ …  This is an industry with the potential to make millions of dollars. Everyone wants to start a marijuana business in Rochester.” — Evans to Business Insider

In December, the City Council approved a two-year guaranteed basic income pilot program that provides $500 a month to 175 families that live at or below 200% of the federal poverty line. The program will use funds from the American Rescue Plan, according to Spectrum News. Evan has previously said he would approach philanthropists to see whether they could help the city expand the program.

Ithaca, New York, Newark, New Jersey, and Los Angeles, California have approved similar plans, according to the Spectrum report. A similar program is also under consideration in Buffalo, New York’s second-largest city.

Evans’ predecessor, Lovely Warren, had wanted to use cannabis taxes to fund a reparations-oriented universal basic income program.

Earlier this month, Evans launched the Cannabis Preparation Commission, which will set rules and regulations for industry licensing in the city once the state publishes its own policies.

“There are things we can learn that we want to do, and things we want to make sure we absolutely do not do,” he said in a statement to Spectrum News. “We want to make sure that this is available to folks in the community. As it relates to an entrepreneurial perspective. If people are left out especially in the Black and brown communities we will have missed an opportunity.”

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BC Pilot Program Helps Unlicensed Growers Get Cannabis Licenses

12/28/2021

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In an effort to slow down unregulated market cannabis sales, officials in British Columbia, Canada have started helping unlicensed producers enter the legal market, the Canadian Press reports. The pilot program, which is based in the Central Kootenay region of B.C. and ended in July, helped illicit market growers interested in making the switch to legal sales with licensing, marketing plans, and security, the report says.

The province said in a press release the pilot program helped 53 unlicensed cultivators, but only 13 received licenses, while 62 jobs were created or moved from the illicit market.

Abra Brynne of the Kootenay Cannabis Economic Development Council said high insurance rates and other economic factors make it difficult to convince unlicensed cultivators to make the transition to the legal market. She said the pilot program saw successes but that there is “a heck of a long way for things to go.”

B.C. Solicitor General Mike Farnworth said in an interview with the Press that less restrictive regulations could help encourage more underground growers to join the legal industry, noting the short time adult-use cannabis has been legal in Canada.

“It’s still very much a work in progress three years in,” he said.

Farnworth added that he has heard many individuals are frustrated with the difficulties in getting cannabis to market and from retailers who are unhappy with security measures like frosted glass in their storefronts. Farnworth pointed to a program expected this spring, called Farm Gate, which would allow producers to have a retail store on their property and deliver directly to retail stores. He thinks this would help unlicensed operators who want to go legal and craft growers alike.

“We’re trying to work with the industry (and) identify some of the challenges we can deal with,” he said.

Todd Veri, president of the Kootenay Outdoor Producer Co-Op, however, believes the B.C. government has backed “the wrong horse,” pointing to the enormous amount of time and effort it has taken his group, and other legal applicants like him, to navigate the provincial and Health Canada regulations. Despite his criticism of the provincial government’s partnership with illicit cannabis producers, he does agree with Farnworth that allowing farms to sell directly to retailers would help craft growers, the report says.

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Cannabit-Tikun Olam Partners with Teva Israel on International Distribution Deal 

12/28/2021

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Medical cannabis company Cannabit-Tikun Olam is partnering with pharmaceutical firm Teva Israel to produce cannabis products that will be distributed in Israel, Palestine, and eventually Ukraine. Teva said the products will be produced according to the company’s “instructions and stringent standards” under the 10-year collaboration.

Yossi Ofek, CEO of Teva, said Israel’s medical cannabis market is “developing and being professionalized at a dizzying pace” and “there is more openness to it in Israel and worldwide.”

“Today, it is clear to many in the pharmaceutical industry and in the medical community that use of oils produced from specific cannabis strains may provide additional treatment options and respond to unmet medical needs of patients.” — Ofek in a press release  

Cannabit-Tikun Olam General Manager Avinoam Sapir has previously served as Teva Israel CEO from 2013 and later as cluster head for Africa, the Middle East, and Ukraine, through 2020.

“I believe that this is one of the most important agreements concluded in the industry in recent years in Israel and that it will position Cannbit-Tikun Olam and Teva Israel as leading players in the ever-growing and developing medical cannabis market in Israel and beyond,” he said in a statement.

The oils produced as part of the collaboration are based on strains developed by Cannbit-Tikun Olam and selected by Teva due to their safety profile and strong therapeutic efficacy, the companies said.

The deal includes a provision allowing a 9-year extension to the partnership.

Earlier this year, Tikun Olam announced a partnership with Ambrosia-SupHerb to produce and market nutritional supplements based on cannabis and mushrooms.

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West Coast Researchers Receive $10M USDA Grant to Study Hemp

12/27/2021

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Washington State University (WSU) and other partnering universities on the West Coast have received a five-year, $10 million U.S. Department of Agriculture (USDA) grant to study hemp in the region.

WSU researchers are partnering with eight institutions across the nation, along with industry partners including the Industrial Hemp Association of Washington, on the research, which addresses the needs of Native Americans and other rural community businesses and farmers in the four-state West Coast region. WSU will receive $1.3 million from the grant.

David Gang, professor in WSU’s Institute of Biological Chemistry, indicated the researchers are “interested in what hemp varieties are best for western growers,” noting that many farmers are interested in growing the crop for fiber and grain.”

“Hemp has a lot of amazing properties and potential, especially in producing building material and feedstock.” – Gang in a statement

Jeffrey Steiner, associate director of the Global Hemp Innovation Center said the involvement in the research by tribal communities and rural communities “is critical to its success.”

“The potential economic opportunities this new commodity may have presents tremendous potential for rural communities,” he said, “and our project has set out to ensure those opportunities are equally available and relevant to all kinds of farmers.”

Additional partners on the project include the University of California, Davis; University of Nevada, Reno Extension; USDA, Agricultural Research Service; United States Department of Transportation, Volpe National Transportation Systems Research Center, the Federally Recognized Tribes Extension Program; 7 Generations, a Native American-owned firm that specializes in Indian Country business development; USDA, National Agricultural Library; and the USDA, Western Rural Development Center.

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Maryland Legalization Referendum Bill Expected Next Month

12/27/2021

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A bill to place a cannabis legalization referendum on 2022 ballots in Maryland is set to be introduced when the state General Assembly convenes next month, WTOP News reports. The proposal was authored by Democrat Del. Luke Clipper, who is the chairman of the House Cannabis Referendum and Legalization Workgroup, which was formed last summer to study the issue.

If approved by lawmakers, the question put to voters would read:

“Do you favor legalization of adult-use cannabis in Maryland?”

If the question is successful, the state legislature would add an amendment to the state constitution and pass a law allowing adults 21-and-older to use and possess cannabis, with the law expected to take effect as early as July 2023, the report says.

The bill would require approval from three-fifths of members from both chambers of the state legislature and lawmakers would still have to create rules for the cannabis industry.

Maryland House Speaker Adrienne A. Jones (D) has previously expressed her support for the referendum and announced a plan to create a workgroup to lay the framework if the question is approved by voters.

Senate President Bill Ferguson (D) has indicated that the chamber would also move forward with cannabis legalization legislation.

A Goucher College poll released last March found two-thirds of Marylanders support legalization, including 77% of Democrats, 50% of Republicans, and 60% of independents. Mileah Kromer, director of the Sarah T. Hughes Field Politics Center at Goucher College, said that the poll marked the first time Republican support for cannabis legalization in the state topped 50%.

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Canadian Human Rights Tribunal to Hear Case of Bank Recalling Cannabis Licensees’ Mortgage

12/27/2021

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A dispute about whether banks can pull mortgages from cannabis users is heading to the Canadian Human Rights Tribunal, Western Standard reports. The dispute stems from a 2010 recall of a mortgage by Scotiabank from a homeowner with a federal license to cultivate cannabis.

The bank had told the homeowner that it “does not allow marijuana in their communities” and that it “was very concerned about the environmental issues within residences where cannabis was grown” and that “growing marijuana at a mortgaged home was prohibited by bank policy,” the report says.

Edward Lustig, an adjudicator with the Tribunal, wrote that the bank “engaged in a discriminatory practice contrary to the Canadian Human Rights Act” by treating the homeowners “in an adverse differential manner in the provision of services customarily available to the general public.”

The Canadian Human Rights Commission has twice rejected the homeowner’s complaint and it has been sent to a federal judge three times. In 2019, Federal Court Justice Robert Barnes wrote that “for reasons that have not been expressed it is apparent the Human Rights Commission does not like this complaint and wants to be rid of it.”

“In my view, the Commission has shown itself to be unfit to resolve this matter such that the court must now direct it to act,” he wrote.

The bank has defended its position, saying that the only way they would finance the property would be “if it was completely remediated” and that the ban on financing cannabis-related properties “is very clear” in the bank’s policies.

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Minnesota Declares Most Hemp-Derived Consumables Illegal

12/23/2021

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During a meeting last week with the Minnesota Cannabis Association, members of the state Department of Agriculture and the Board of Pharmacy indicated that most hemp-derived products meant for human consumption — whether CBD or Delta-8 THC — run afoul of state law.

Minnesota Cannabis Association board member Steven Brown said that during the meeting, state officials stated that hemp-derived tinctures “are illegal” and an Agriculture Department representative on the call added that “some of the products” Brown brought up in the call “would not be legal food” under the state’s statute definition of hemp.

According to the Minnesota Cannabis Association in a press release, the Board of Pharmacy only considers hemp seed oil and CBD flower legal. The advocacy organization points to a 22-page document from the 901st meeting of the Pharmacy Board that outlines the agency position, basing it on the hemp reforms included in the 2018 update of the 2014 federal Farm Bill. In that document, the board makes its case that since the Food & Drug Administration (FDA) has not approved any of the common cannabinoid products — such as gummies — then they cannot be legal. Further, the Pharmacy Board points to a Dec. 18, 2020 statement by former FDA Commissioner Scott Gottlieb:

“Additionally, it’s unlawful under the [Food Drug &Cosmetic Act] to introduce food containing added CBD or THC into interstate commerce, or to market CBD or THC products as, or in, dietary supplements, regardless of whether the substances are hemp-derived. This is because both CBD and THC are active ingredients in FDA-approved drugs and were the subject of substantial clinical investigations before they were marketed as foods or dietary supplements.”

The Pharmacy Board, during that meeting, ultimately determined that “the sale of products containing cannabinoids or [THC], extracted or indirectly derived from any type of cannabis plant, remains illegal under federal and Minnesota state law, with certain exceptions.” Those exceptions are FDA-approved drugs such as Epidiolex.

Brown, who owns a retail hemp shop in Minnesota, said that the association disagrees with the Board of Pharmacy interpretation — and they also hinge their argument on federal guidelines.

“Eighty-five percent of products on the shelves will have to be pulled,” Brown said in a statement. “This affects so many businesses. So many families. Our business will probably have to shut down in Minnesota if we don’t turn this around.”

In October, the state Court of Appeals ruled that the statutory definition of hemp only applies to leafy plant material, and that “as a matter of law” the 0.3% threshold – which delineates legal hemp from outlawed cannabis — “does not apply to a liquid mixture” containing THC. That decision came in the case of an individual arrested for possessing CBD-rich vape cartridges which contained less than 0.3% THC.

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