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South Carolina Says Delta-8 Not Legal Under State Hemp Law

10/12/2021

In a letter to South Carolina’s Law Enforcement Division chief, state Assistant Attorney General David S. Jones said that delta-8 THC—or any other forms of THC derived from hemp—is not legal under the state’s hemp law.

“We believe a court would not hold that the Hemp Farming Act does not provide an exception for, and does not legalize, delta-8 THC or any other isomer of THC in itself… [The Hemp Farming Act] categorizes all isomers of THC as Schedule I controlled substances ‘unless specifically excepted.’ The only exceptions found in the Hemp Farming Act involve ‘a delta-9 THC concentration of not more than 0.3[%] on a dry weight basis.’”—Wilson in the October 8, 2021 letter

The letter was in response to an inquiry from the Law Enforcement Division, in which it had determined that the “unambiguous language” of the hemp law would “clearly criminalize the possession, possession with intent to distribute, or distribution of any and all amounts of delta-8 THC, or any other variant of THC, found in South Carolina.”

“If the General Assembly intended to undertake legalization of THC on the scale that the industry posits, they would have done so expressly and unambiguously,” Jones opined. “Instead, the legislative scheme of the Hemp Farming Act is much narrower: to create a legal framework for the licensed, regulated production of industrial hemp as defined. It cannot fairly be read to accomplish sweeping THC legalization or a similar sea change from previous policy.”

In June, the Hemp Industries Association (HIA) and its attorneys, Kight Law, had released its own legal opinion arguing that the 2014 and 2018 Farm Bills—which legalized hemp federally—allow for delta-8 THC products as they do not contain more than the 0.3% delta-9 THC threshold allowed under federal law.

The attorneys and HIA did note that while delta-8 THC “appears to be safe” some of the products which may contain “adulterants, contaminants, or other toxins” may be unsafe.

“The HIA believes that the hemp industry should take a strong stance against unsafe delta-8 THC production methods and products,” the attorneys wrote.

In June, a Leafreport study found 53% of delta-8 products contained delta-9 THC over federal legal limits while 68% of the products contained less delta-8 than advertised.

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California Tribe Plans Outdoor Cannabis Grow in Lieu of Casino

10/12/2021

The Dry Creek Rancheria Band of Pomo Indians has filed an application with Sonoma County, California officials to grow nearly 1,000 cannabis plants outdoors on land in Petaluma that it had previously considered for a casino, the North Bay Business Journal reports. The grow site is proposed to use 29 acres of the tribe’s 277 acres in the region.

The tribe owns the land; however, it has not been officially taken into trust as tribal, sovereign land, the report says, which means the same laws apply to the tribe’s property south of Petaluma as any other parcel in unincorporated Sonoma County.

Petaluma City Councilmember Mike Healy said the plan “would allow the tribe to get some economic return on its property without a casino.” The city council and area leaders have long sought to limit casino activity in Sonoma County.

The tribe’s application to cultivate cannabis on the land came three months after leaders agreed to extend an agreement with the county that no casino would be constructed on the property before Dec. 31, 2032. In exchange, the tribe, which closed its River Rock Casino for more than two months at the start of the coronavirus pandemic, was able to waive its $750,000 annual payments to the county last year and this year.

According to the application outlined by the Business Journal, the site plants include landscape screening and fencing, no storage of chemicals, a 100-foot setback from property lines, pine trees to mask the smell, and on-site security.

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Missouri Tosses Residency Requirements for Medical Cannabis Companies

10/12/2021

A Missouri judge last week ordered a permanent injunction against the requirement in the state’s medical cannabis law which required cannabis businesses in the state to be at least 51% owned by residents, the Springfield News-Leader reports. Missouri Western District Judge Nanette Laughrey had issued a preliminary injunction against enforcing the residency requirement in June.

The case against the Missouri Department of Health and Senior Services case had been brought by cannabis investment firm Toigo.

Jack Cardetti, a spokesperson for the state’s largest cannabis industry trade group, MoCannTrade, said the organization has not taken a position on the ruling.

Kim Andrews, part-owner of OzaRX Botanicals, a dispensary that’s 100-percent Missourian-owned, told the News-Leader that she was frustrated by the order, describing the now-defunct residency requirement as “one of those few things that [owners] had to keep everybody on even ground.”

“All the big guys have already been kind of standing at the back of the door. Now there’s nothing to keep them from just rolling in and buying everybody up. Their pockets are deep, their marketing budgets are more than I could ever dream of. They can take a hit opening up stores in a way that we can’t. … They can afford to lose a little money in one market where they know they’re going to make it up somewhere else. It really throws competition for a loop.”—Andrews to the News-Leader

It’s unclear whether state officials plan to appeal the ruling. Chris Nuelle, a spokesperson for the state Attorney General’s Office, which is defending the state health department in the lawsuit, declined to comment to the News-Leader, saying the agency doesn’t “typically don’t get into legal strategy.”

In August, a federal judge ruled that Maine officials could not prohibit out-of-state firms from operating medical cannabis dispensaries in the state, effectively tossing that state’s residency requirements.

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Protests in Mississippi Call for Medical Cannabis Legalization

10/12/2021

Protestors gathered across Mississippi on Saturday to demand Gov. Tate Reeves (R) call a special session to pass the Mississippi Medical Cannabis Act (MMCA), KAIT 8 reports. The bipartisan MMCA was drafted in response to the state Supreme Court throwing out Initiative-65, the voter-approved initiative that sought to legalize medical cannabis in the deep South state during the 2020 election.

“We are tired of waiting,” said Amy Smoot while outside the Desoto County Courthouse with a group called We Are The 74 — named after the 74% of Mississippians who voted in favor of the state’s medical cannabis initiative. “We have sick people that are waiting for this. We need this now.”

Only the governor has the power to call a special session. State senator Kevin Blackwell (R) told KAIT that the final draft of the bill was sent to the governor last Thursday. Reeves has indicated he would call the special session if legislators came to an agreement to regulate the cultivation, processing, and distribution of medical cannabis.

“This is medical cannabis; it’s medical cannabis only. You’re not going to see people running around and smoking everywhere. There are rules and laws.” – Smoot to KAIT

We Are The 74 plans to rally again this weekend in front of the governor’s mansion. In an appeal to Reeves’ compassion, Smoot said at the protest that “there are hurting and sick people all over the state.”

“They don’t have medicine for their children, for their families, and it’s heartbreaking,” she said. “It’s truly heartbreaking.”

During the 2020 election, 74% of Mississippians voted in favor of legalizing medical cannabis. However, Initiative 65 was ruled unconstitutional by the Mississippi Supreme Court due to a congressional redistricting technicality. Anticipating the ruling, some legislators started working on the MMCA in early 2021 and now have a prepared proposal.

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U.S. Senators Ask Justice Department to Decriminalize Cannabis

10/11/2021

U.S. Senators Cory Booker (D-NJ) and Elizabeth Warren (D-Mass) have sent a letter to Attorney General Merrick Garland urging the Department of Justice (DOJ) to decriminalize cannabis by removing it from the federal controlled substances list.

“Under the Controlled Substances Act of 1970 (CSA), the Attorney General can remove a substance from the CSA’s list, in consultation with the Secretary of Health and Human Services (HHS). Decriminalizing cannabis at the federal level via this descheduling process would allow states to regulate cannabis as they see fit, begin to remedy the harm caused by decades of racial disparities in enforcement of cannabis laws, and facilitate valuable medical research. While Congress works to pass comprehensive cannabis reform, you can act now to decriminalize cannabis.” — Booker and Warren in the Oct. 6, 2021 letter

In the letter, the senators called out President Joe Biden (D) for so far failing to uphold his campaign promise to decriminalize cannabis and expunge all prior federal cannabis use convictions.

“Decriminalizing cannabis is also a critical first step in addressing the racial inequities in cannabis law enforcement,” the senators wrote in the letter to Garland. “Federal cannabis policy has disproportionately affected the ability of people of color in the United States to vote, to pursue education, and to build intergenerational wealth. You can begin to repair the harm that the criminalization of cannabis has wrought on communities of color by using your statutory and regulatory authority to deschedule this drug.”

The letter notes that the National Institute on Drug Abuse — a part of the federal National Institutes of Health — has acknowledged that THC “has proven medical benefits in particular formulations” and that the Food and Drug Administration has approved THC synthetics as medications for patients with AIDS and patients undergoing chemotherapy and has also approved a CBD medication for pediatric patients suffering from epilepsy.

In the letter, the senators request that the attorney general responds as to whether they will consider ordering an HHS review — the first step in the process — by October 20.

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Pennsylvania Republican Readying Cannabis Legalization Bill

10/11/2021

A Republican Pennsylvania state senator is circulating a memorandum seeking to add co-sponsors to a cannabis legalization bill, the Times Observer reports. Sen. Mike Regan, who helped write the state’s 2016 medical cannabis law said in a Broad and Liberty op-ed last week that cannabis legalization in the state “is inevitable.”

“As chairman of the Senate Law and Justice Committee and a former member of law enforcement, rather than sit idly by and allow others to shape the legislation, I am stepping up to be a leader on the issue, as I did on medical marijuana. And I am doing so using a common-sense, bipartisan, bicameral approach that will provide Pennsylvanians access to a safe product, create thousands of jobs, level the playing field with neighboring states, support law enforcement and our communities, and more importantly, defund the deadly drug cartels who have wreaked so much havoc on the commonwealth and our country for so many years.”—Regan, “Legalization of adult-use marijuana is inevitable,” Broad and Liberty, Oct. 5, 2021

Under Regan’s plan, cannabis-derived revenues would be used partially to benefit the Pennsylvania State Police and for infrastructure investment. The bill has not yet been formally introduced in the Senate.

Earlier this year state Sen. Dan Laughlin (R) and Democratic state Sen. Sharif Street, announced a joint plan to legalize cannabis for adults which would create a state-run system for cultivation and sales and expunge records for nonviolent cannabis-related offenses. That announcement made Laughlin one of the first Republicans in the state Legislature to support the reforms.

Democratic Gov. Tom Wolf and Lt. Gov. John Fetterman—who is running for U.S. Senate—both strongly back cannabis legalization in the state.

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Arizona Releases List of Zip Codes for Social Equity Licenses

10/11/2021

The Arizona Department of Health and Human Services (DHHS) has identified 87 zip codes where applicants for the state’s cannabis social equity licensed must have lived in recent years. The localities include parts of Phoenix and Tucson and some in the smaller border communities of Nogales, Douglas, and San Luis, and is heavily focused on areas on or near Native American reservations Fox 10 reports.

In all, the state has set aside 26 social equity licenses for 169 total retail cannabis licenses.

DHHS Spokesman Tom Herrmann told Fox 10 that the process for selecting the zip codes “included a thorough review and analysis of a variety of data sources, including research and analyses of criminal justice and socioeconomic data.”

Licensees must have lived in one of the identified zip codes for at least three of the last five years to be eligible for a social equity license in the state. Other criteria include household income and past cannabis convictions for either the applicant or a family member, the report says. Those awarded the licenses must also show how their business “will provide a benefit to one or more communities disproportionately affected by the enforcement of Arizona’s previous marijuana laws,” according to the official program description.

Will Humble, a former DHHS director who now serves as the executive director of the Arizona Public Health Association, said that the agency likely didn’t release information about how it chose the zip codes because regulators are likely anticipating being sued; however, he noted that releasing the list was the first time he was “aware of the state of Arizona has basically admitted there are some communities that have been unfairly targeted by law enforcement and prosecutors.”

“They had to be forced by voters to admit it,” he said to Fox 10.

Adult-use cannabis business licensing in Arizona, including social equity applicants, is expected early next year.

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Cannabis Confiscations Rising on U.S.-Canada Border

10/11/2021

Custom and border officials have seized nearly 15,000 pounds of cannabis at the Canada-U.S. Michigan border this year, MLive reports. The incidents are reportedly up seven times from 2018 when just 2,189 pounds were confiscated.

“It’s fascinating that you can sit there and you look into parts of rural Ontario from Michigan, you can look across the water, whether it’s Lake St. Clair or the Detroit River, you can see in the middle of the night the glow of these greenhouses that are basically just mass producing this stuff on a daily basis.” — Homeland Security Investigations Assistant Special Agent in Charge Matthew Stentz, via MLive

Like on the southern border, cannabis smuggled across the northern border is not destined for the nearby area. Although cannabis is legal in Michigan, most of the cannabis crossing the border is headed south where cannabis is still illegal in places like the Carolinas and Georgia, according to the report.

“With Michigan being a recreationally legal state, anyone bringing drugs from Canada will probably be best served to those drugs in a state where they can maximize their profit,” DEA Detroit Field Division spokesperson Brian McNeal said. “Logic would suggest that not all if any of those drugs are destined for the state of Michigan.”

Authorities say smugglers are using large trucks, individuals’ cars, and even mini-submarines to bring Canadian cannabis into the U.S., but it’s not just a Michigan issue according to the report. Another hot spot on the Canada-U.S. border is Buffalo, New York where authorities seized 41,000 pounds of cannabis this year, up from 1,071 in 2016.

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NBA Will Not Randomly Test Players for Cannabis During 2021-22 Season

10/08/2021

The National Basketball Association (NBA) has agreed to not randomly test players for cannabis during the upcoming season, continuing the policy which started during the “restart bubble” and was continued last season, the Associated Press reports. The league will still test for performance-enhancing drugs and drugs of abuse, such as methamphetamine, cocaine, and opiates.

“We have agreed with the [National Basketball Player’s Association] to extend the suspension of random testing for marijuana for the 2021-22 season and focus our random testing program on performance-enhancing products and drugs of abuse.” — NBA spokesman Mike Bass via the AP

Cannabis remains prohibited under the league’s collective bargaining agreement, but negotiations between the league and players’ association loosened restrictions.

Last year, NBA Commissioner Adam Silver said that “it’s possible” the league’s decision to stop randomly drug testing for cannabis could be permanent, but the policy has only been extended each season rather than implemented long-term.

“It doesn’t mean that we’re not going to be talking to players who maybe aren’t using marijuana casually, but feel more of a dependency on it, because of the stress this year,” Silver said in December 2020. “And I’d say the same thing about alcohol or any other substance.”

Silver added that “given all the things that were happening in society, given all the pressures and stress that players were under” in 2020 he didn’t think the league needed to “act as Big Brother right now.”

“I think society’s views around marijuana has changed to a certain extent,” he said.

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Oklahoma Advocates Campaign to Put Cannabis Reforms on 2022 Ballots

10/08/2021

Cannabis advocates in Oklahoma have filed ballot initiatives for 2022 to legalize adult-use cannabis and replace the current medical cannabis oversight agency, the Tulsa World reports. Jed Green, co-founder for Oklahomans for Responsible Cannabis Action, said the petitions are necessary because he doesn’t see the reforms making it through the legislative process “any time soon.”

Green said a new oversight agency for the state’s medical cannabis program would ensure independent supervision of the program which would “increase transparency and create a structure that could be functional.” Currently, the state Health Department oversees medical cannabis in Oklahoma.

“When decisions are being made about how funds are being spent, … you have to go to either the commissioner of health or the governor to understand the decisions that are being made,” You can try to have conversations and be productive with [Oklahoma Medical Marijuana Authority] directors, but at the end of the day they’re having talks that you’re not in the room for. And they’re making decisions that are not in line with the industry, and it’s tough. We have all the reason to believe the governor is not going to sign off on a new state agency if it makes it through the Senate.” — Green to the World

The petition, called the Oklahoma Medical Marijuana Enforcement and Anti-Corruption Act, would amend the state constitution to create the Oklahoma State Cannabis Commission within a year. The Health Department would, at the discretion of the newly created agency’s board, retain its oversight power on food permits and safety issues with cannabis products, the report says.

The adult-use petition would allow cannabis possession and use by adults 21-and-older and legalize sales in the state. Individuals would be allowed to possess up to 8 ounces of cannabis purchased from retailers and grow up to 12 plants in their homes, which would not count toward the 8-ounce limit, according to the World. The proposal also includes expungement and judicial reviews of cannabis-related convictions. The measure would tax retail cannabis sales at 15% while reducing the tax on medical cannabis sales to 0% within a year.

Under the proposal, extra funds from both the medical and retail programs would go toward cannabis research, water resources, and eight hours of training for law enforcement officers on the legal status of cannabis.

The campaign needs to collect about 178,000 valid signatures to put the issue to voters next year.

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Connecticut Social Equity Council Seeking to Charter New Banks

10/08/2021

Members of Connecticut’s Social Equity Council are asking regulators to charter new banks to back the state’s cannabis industry, specifically, to help provide better opportunities for potential social equity applicants, WSHU Public Radio reports. The social equity council is responsible for ensuring the sale of adult-use cannabis in the state provides business opportunities for low-income and communities of color that are disproportionately impacted by the war on drugs.

Councilmember Joseph Williams, who is with the Connecticut Small Business Development Center at the University of Connecticut, said he was concerned that the state’s cannabis market will be oversaturated with cannabis producers and vendors and also wants regulators to control the number of industry permits.

“They need to source capital. One of the biggest things around social equity that has eluded us is the lack of capital and I find we really need to address that as quickly as possible.” — Williams via WSHU

The council plans give individuals with a previous cannabis arrest or conviction priority for an industry license regardless of their wealth as long as they came from certain neighborhoods affected by the over-policing. The plan covers 35 Connecticut cities and towns, the report says.

The state could help finance industry licensing fees, which are set at $1,000 broadly and at $500 for social equity applicants. The state estimates cannabis-derived taxes and fees could reach as much as $40 million per year. Under state law, sales tax revenues generated from sales could be reinvested by the council.

Sales are not expected to roll out in the state until late 2022.

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Colin Wells: Veterans Healing Together Through Plant Medicine

10/08/2021

In this episode of Fresh Cut, host Cara Wietstock meets with Colin Wells, a US Army Infantry veteran and founder of Veterans Walk and Talk. Cara and Colin explore how he overcame his own addiction after experiencing homelessness, the veteran experience, and how the combination of cannabis, psychedelics, nature, and community can improve veterans’ lives.

To learn more about Veterans Walk and Talk: https://veteranswalkandtalk.com/vwat

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Danielle Schumacher: Recruiting Talent for a Diverse Cannabis Industry

10/07/2021

There are more new jobs and employment opportunities in the cannabis industry now than ever before. But for many stakeholders, the paramount concern is building a more fair and inclusive industry — THC Staffing was founded to address the disproportionate opportunities for women and BIPOC entrepreneurs and employees in the cannabis space.

We recently interviewed THC Staffing’s founder and CEO Danielle Schumacher about her company’s founding mission, the benefits cannabis companies can expect from working with a professional recruiter, and reactions and success stories from her many years in the industry. This interview also covers the many first-of-their-kind projects that THC Staffing helps manage, including the Women of Color in Cannabis CannaCareers project and the Second Chance Hiring Initiative, which is the first national cannabis job pipeline for people with previous convictions.

Read the full interview below!

Ganjapreneur: Why did you found THC Staffing in 2014?

Danielle Schumacher: Despite BI&POC communities being disproportionately impacted by the drug war – including thousands still incarcerated and millions disenfranchised by felony convictions – the vast majority of cannabis businesses are owned by white men, and there is also a glaring lack of diversity in the workforce.

THC Staffing was the first staffing firm to center diversity, equity, and inclusion in recruiting for the cannabis industry. Building a diverse and inclusive company culture is not only proven to be better for a company’s bottom line; it’s the right thing to do. We offer advisory services to cannabis companies seeking to adopt more inclusive recruitment efforts.

What sectors of the cannabis industry do you serve?

All; however we have ample experience recruiting and matching specialized managers in cultivation, extraction, manufacturing, lab testing, and dispensaries. My hands-on work experience in cultivation, dispensary, and nonprofit operations is very helpful when matchmaking for these sectors.

What is the mission at THC Staffing, and what initiatives are you working on to fulfill this mission?

Our mission is to build a diverse and inclusive cannabis industry by prioritizing employment and ownership for communities most impacted by the War on Drugs – particularly women, people of color, LGBTQI, formerly incarcerated individuals, people with disabilities, across all ages, regardless of citizenship or primary language.

We prioritize diverse candidates throughout every step of our recruiting process — from helping companies navigate fair hiring processes and job description messaging, to identifying the most qualified applicants. We also help companies craft and implement social impact plans, community engagement initiatives, and inclusive HR practices.

Also, we donate 10% of our income to nonprofits who share our values.

We are a founding partner of WOCC CannaCareers, a free career services program of Women of Color in Cannabis; we are the staffing partner for Supernova Women’s EquityWorks! Incubator; and we are working with Illinois Equity Staffing on their Second Chance Hiring Initiative.

What are the benefits of hiring a recruitment firm to fill open positions?

Recruiters who understand the industry and the company’s needs make the hiring process more efficient and less stressful. Recruiters specialize in how to craft and promote job listings to draw the best candidate pool. When candidates feel supported in the process, the interviews are more meaningful and productive. Especially in an emerging and highly regulated field like cannabis, many of the most qualified candidates prefer to work with a third party recruiter who can help them navigate the options and negotiations. Good recruiters will also stay in close contact with the people they place, which helps with retention and conflict resolution.

What results have some clients seen after consulting with you and your team?

Companies often remark that they don’t know how we found such a diverse and qualified candidate pool. They also notice that our candidates are more prepared for interviews and easier to onboard and train. I am very proud that most of the people we place stay with the company for years and make a noticeable contribution to the team. Many of our candidates are social justice advocates and can work respectfully with all kinds of people, which are major benefits for cannabis companies.

Companies who work with us on building inclusive HR policies and procedures can see and feel the culture change and overall growth and retention. In some cases, working with us has made the difference in whether a company is compliant with regulations that require successful implementation of diversity hiring, community engagement, and social impact plans.

Do you look for anything specific (either on a resume or in person) when recruiting someone?

Integrity, attention to detail, and willingness to learn – 3 of the most important qualities for all sectors of the industry – can be demonstrated through a resume and in person. Resumes should be engaging, easy to read, and in an organized and consistent format. I also pay close attention to how candidates communicate throughout the process i.e. email responses are prompt and thorough and all communication is respectful.

When did you partner with Oakland, California social equity incubator Supernova Women, and what services do you provide them?

In late 2020, I began assisting Supernova Women with recruitment for the workforce development cohort of their social equity incubator. I promoted the opportunity for paid training to my network, and processed all applications. I led the interview process, and was also liaison to the City of Oakland. I also advise on retention and job placement.

What is the Illinois Equity Staffing? How do you contribute to this initiative?

Illinois Equity Staffing provides recruiting, HR, and training for cannabis companies. They invited me to assist with their Second Chance Initiative, which is the first national cannabis job pipeline for people with past offenses, charges, or backgrounds. This includes people who have previously been incarcerated and people who have had their record expunged. I build relationships with re-entry groups and other community groups who work with justice-impacted individuals, and assist advocates and candidates throughout the hiring process. I also help Illinois Equity Staffing and participating employers navigate the legal and cultural context of recruiting and hiring second chance candidates for cannabis jobs.

What is your role as a founding partner in the Women of Color in Cannabis CannaCareers platform?

During the early months of the pandemic, I began researching virtual events and came across WOCC’s monthly sessions. I was really impressed with their mission and programming and reached out to offer support. We began meeting and quickly realized that I was uniquely qualified to help them realize one of their long-term goals of providing cannabis career services tailored for women of color. After several months of planning, we officially partnered with Ashley Boucher of Quality Control Analytics (a Massachusetts certified trainer), and Ann Brum of Joint Venture Co. As a team, we have developed a vetted job board and a webinar series that walks through the job descriptions and qualifications of each sector of the industry. Each webinar also includes resume and cover letter advice and how to find job openings and prepare for interviews. Myself and Amber McDonald offer free resume reviews.

Why did you launch the mentoring program, and how many mentor & mentee partnerships are in the first cycle?

Our first-of-its-kind mentoring program provides an opportunity for experienced cannabis professionals to guide job seekers and entrepreneurs in developing practical skills and a community-based network. The Program’s mission is not only to help a diverse range of individuals access industry knowledge but also to provide a fair chance to underserved communities and those who are negatively affected by the war on drugs and have not had pathways to employment and ownership in the cannabis economy. We encourage women, POC, LGBTQ+, formerly incarcerated individuals, and people with disabilities to participate. The Program is free to participate in and includes individual and team mentoring. Through a culmination of decades of networking and relationship-building with diverse industry professionals from across the nation, our pilot program connected 50 mentees with a mentor and monthly group sessions.

How do you pair mentors and mentees to best support positive growth? Are there any qualifying factors to take part on either side of the program?

Matches are based on a mentor’s relevant professional experience to meet the mentee’s career goals, and also shared identity and interests. Mentors and mentees accept or decline the match. Participants attend a group orientation before meeting 1-on-1. We require everyone agree to a robust Code of Conduct, and we provide a workbook and ongoing support for mentors and mentees.

What is your best piece of advice for someone hoping to start a career in the cannabis space?

All experience is transferable. However, if you feel overwhelmed or don’t know where to start, I recommend figuring out what you don’t want to do. If you don’t want to do customer service, don’t apply for budtending or sales jobs. If you don’t want to or can’t do physical labor, don’t apply for cultivation or manufacturing jobs. If you don’t want to work for corporations, research and network with ancillary and small businesses. It’s important to know your limits and restrict your search accordingly.

Thanks so much, Danielle, for taking the time to answer our questions. To learn more, visit THCStaffingGroup.com.

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Cannabis Collective Receives $5M in Nation’s First Industry Antitrust Case

10/07/2021

A California jury has awarded $5 million in damages in what is believed to be the first cannabis industry antitrust case in the nation, according to a National Law Review report. The case, Richmond Compassionate Care Collective v. Koziol, et al., involved a dispute between medical cannabis collectives in Richmond, California.

The plaintiff, Richmond Compassionate Care Collective (RCCC), contended that the defendants, directors of the collective Richmond Patient’s Group (RPG), conspired to prevent them from opening a dispensary by blocking their access to the limited inventory of commercial properties where medical cannabis dispensaries were permitted to operate under a local ordinance.

The RCCC claimed that RPG’s plan included fake leases, letters of intent to lease or purchase, and purchase agreements to landlords with available commercial properties in an effort to “tie [the landlords] up with paper” so as to prevent RCCC from securing a property before its pending permit expired, the report says. RCCC also said the defendants went door-to-door to landlords, attempting to convince them not to lease or rent their properties to RCCC, and demanded non-compete clauses in their own leases to contractually prevent landlords from leasing or renting their properties to the plaintiffs.

RCCC’s lawsuit argued that RPG’s actions constituted an unlawful group boycott in violation of California’s Cartwright Act and caused RCCC to suffer millions of dollars in damages.

The case went to trial in August, naming as defendants the three owners and directors of RPG: William Koziol, Darrin Parle, and Alexis Parle. On September 23, the jury returned a verdict against Koziol and Parle, awarding $5,000,000 in damages, which will be automatically trebled to $15,000,000, the report says. Parle, the remaining defendant, was found not liable.

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Half of Oregon Hemp Farms Out of Compliance

10/07/2021

An Oregon Liquor and Cannabis Commission (OLCC) report found that 54% of hemp farms inspected in southern Oregon to be growing THC-rich cannabis, Jefferson Public Radio (JPR) reports. The state set a limit of 5% THC as the out-of-compliance threshold for these inspections, although under federal rules hemp cannot contain more than 0.3% THC.

According to the report, OLCC, local law enforcement, and Department of Agriculture inspectors sampled cannabis plants from 212 out of 335 licensed hemp farms in Jackson and Josephine counties. An additional 76 farms prevented inspectors from collecting samples and another 23 were not available for contact.

“I believe from my experience down there, there are more illegal grows than there are registered grows.” — OLCC Senior Director of Licensing and Compliance Richard Evans, via JPR

Additionally, the OLCC said some farms were diverting water and had no bathrooms for workers. Inspectors found that farms were housing laborers in tents in greenhouses, the report says.

“Whether they have armed guards out in front of the marijuana grow in front of their house, water rights, the [cannabis] smell, the human trafficking issues — the folks working in the field — this is a human atrocity in my mind,” Evans said to JPR.

The mass inspections were initiated by House Bill 300, passed by Oregon lawmakers in July. The bill gave the Oregon Department of Agriculture authority to work with OLCC and local law enforcement to access farms to test their hemp crops for compliance.

In an interview with Cannabis Business Times, Mason Walker — CEO of Oregon’s East Fork Cultivars, a licensed hemp and cannabis producer — said, “If you drive around southern Oregon near our farm, it is full of illicit cannabis — just everywhere. It always has been, but it’s always been family-scale. … What’s different this year over any year is it is very clearly not family-scale illicit cannabis. It is commercial-scale, organized illicit cannabis.”

Walker also said that some of the high-testing crops may be caused by bad hemp seeds and not malicious intentions — crops that are testing over 5% THC, however, may be suspect.

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Cannabis Execs Charged with Defrauding Investors of $4M

10/07/2021

In a federal indictment unsealed Tuesday, a pair of executives for New Jersey cannabis company CanaFarma Corp. are accused of defrauding investors out of at least $4 million. Vitaly Fargesen, CanaFarma senior vice president of strategic planning, and Igor Palatnik, the company’s senior vice president of product acquisition, are facing multiple counts of securities fraud and wire fraud.

In a statement, Manhattan U.S. Attorney Audrey Strauss said the pair “presented themselves as entrepreneurs developing a new business for an emerging industry.”

“But, as alleged, Fargesen and Palatnik were just using the trappings of a start-up to run an old-time scam: lying to investors to take money for themselves.”—Strauss in a press release

The charges are based on the duo allegedly soliciting funds based upon false and misleading representations, failing to invest investor’s funds as promised, manipulating the public stock price of CanaFarma, and secretly misappropriating millions of dollars of company funds, investigators said in a statement. The government alleges the defendants solicited at least $14 million in funds and misappropriated at least $4 million for their own benefit.

“The defendants, as alleged, lured investors to CanaFarma by falsely representing the company’s financials, manipulating their stock price, and misappropriating millions for their personal benefit,” Federal Bureau of Investigation Director-in-Charge Michael J. Driscoll said in a statement. “Just as a reminder to anyone who thinks they can manipulate people’s investments in this way—that’s simply not the case.”

Fargesen and Palatnik are each charged with one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison, one count of securities fraud, which carries a maximum sentence of 20 years in prison, one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The case is being overseen by the Securities and Commodities Fraud Task Force.

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Missouri Cannabis Companies Can No Longer Advertise Strain Names

10/07/2021

Missouri medical cannabis companies can no longer advertise strain names — or employ any other type of advertising outside of listing prices on their websites — under a new directive from the compliance director for the program, Greenway Magazine reports. The letter from Andrea Balkenbush, the facility license and compliance director for the Medical Marijuana Regulatory Program at the Missouri Department of Health and Senior Services, also prohibits cannabis companies from accepting online payments through third-party sites.

“The Department views a promotional event as any activity, advertisement, or publicity designed to increase interest in purchasing medical marijuana or a particular product or brand of medical marijuana. For example, facilities are not allowed to advertise price discounts on a particular product because that would result in disbursing medical marijuana as part of a promotional event.” — Balkenbush, in the letter, via Greenway Magazine

Chris McHugh, CEO, and president of Vertical Cannabis, told News-Press Now that he believes the guidance regarding third-party payments in an attempt to prevent cannabis delivery services and that regulators are trying to prevent adult-use-like marketing in the medical cannabis program.

Dan Viets, an attorney, and chairman of the group that led the effort to legalize medical cannabis in the state, said that the regulations will stamp out competition in the industry.

“For the welfare of patients, there has to be competition,” Viets told News-Press Now.

According to Greenway Magazine, which tracks the Missouri cannabis industry and first posted the letter, medical cannabis sales in the state passed $100 million last month for both cumulative and year-to-date sales and posted a record high of $21.73 million in revenues in August.

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California Releases Guidelines for $100M Cannabis Industry Grants

10/06/2021

The California Department of Cannabis Control (DCC) released guidelines and application requirements last week for a $100 million local jurisdiction grant program, according to an agency press release. The program was proposed by Gov. Gavin Newsom in his 2021-2022 budget which was approved by the legislature.

The purpose of the grants is to help local jurisdictions transition the high number of provisional licenses into the more permanent annual license type. Specifically, the grants are meant to streamline the license transition process for local governments and help to meet California Environmental Quality Act (CEQA) requirements. There is additional funding for localities with social equity programs to help transition social equity licensees who hold provisional licenses to annual licenses.

“The local jurisdictions eligible to receive grant funding represent areas with large numbers of small, equity and legacy cannabis businesses, including small cultivators that often have unique regulatory needs.” — DCC Director Nicole Elliott in a statement

There are 17 cities and counties eligible for grant funding, including some of California’s largest cannabis markets like Los Angeles, San Francisco, San Diego, Oakland, and Long Beach. The grants could range from $400,000 to $22 million, according to the press release. DCC said the grants could go out as early as the end of 2021. DCC also said that officials had worked with local jurisdictions to develop the best program to meet each region’s specific needs, and they took feedback on proposed program guidelines and adjusted the program in response.

“Each jurisdiction is unique. The development of this program acknowledges this fact and was informed by the conversations we had with eligible jurisdictions about their specific needs,” said Elliott. “The way we have structured this program encourages jurisdictions to propose novel, innovative ways to support their local businesses in making the transition into annual licensure.”

The provisional licensing program was created to help cannabis operators transition into the legal cannabis market. The program was due to sunset on Jan. 1, 2021, but was extended to allow a large number of provisional license holders — many of whom would have had to close their doors in California’s legal cannabis market if the program was not extended — to continue to work on license approval and complete CEQA requirements.

The extension included rolling sunset dates, based on license types, and set specific benchmarks for provisional license renewal in hopes that the backlog of provisional-to-annual license transitions would be resolved.

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Colorado Cultivators Grew 24% More Cannabis in 2020

10/06/2021

Colorado cultivators grew 1.8 million pounds of cannabis last year, a 24% increase from 2019, according to Colorado Department of Revenue (CDOR) data outlined by Center Square. More than 72% of the total cannabis produced in the state went to the adult-use market.

Total cannabis sales in Colorado reached $2.19 billion last year—up from $1.79 billion in 2019, the report says.

The average seed-to-sale time for Colorado producers was 126 days, a decrease of six total days since 2017, according to CDOR data. In all cultivators used more than 3.7 million plants to reach 1.8 million pounds.

In 2020, the total number of adult-use industry licenses increased by 1.7% to 2,727 total businesses, while the number of medical cannabis business licenses decreased from 1,141 in January to 1,113 by the end of the year, according to CDOR data. The adult-use market also accounted for more than 85% of concentrates sold, 87% of the non-edible infused products sold, and 89% of the edibles sold, state data showed.

In June, Gov. Jared Polis (D) signed a bill curtailing how much cannabis concentrates medical cannabis patients could purchase per day from 40 grams to eight. While that law was not in effect last year, it will likely lead to the adult-use sales accounting for even more of the share of concentrates sold through the adult-use market going forward.

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LIM College Launches Cannabis Industry Bachelor’s Degree Program

10/06/2021

New York’s LIM College on Tuesday announced the creation of its Bachelor of Business Administration degree program in cannabis which the college says is the first of its kind in the nation and set to launch during the fall 2022 semester.

Elizabeth S. Marcuse, president of LIM College, said that the college has monitored “the explosive job growth in the cannabis sector” and found “that employers are seeking skills and experience often possessed by fashion business professionals plus cannabis industry knowledge.”

Cannabis major courses will be taught by Chris Jones, the founder of Cannabis Xpress, and Marianne Cursetjee, CEO and co-founder of Alibi Cannabis. Development of the program included input from Penelope Nam-Stephen, chief commercial officer for Community Growth Partners, and Sarah Falvo, director of community for the Arcview Group, a financial and consulting services firm for the cannabis and hemp industry.

“This program is very timely because the rapidly-evolving cannabis industry currently needs entry-level executives who will view the industry through a professional and business-oriented lens. Having a well-qualified pipeline of talent in this heavily regulated and fragmented industry will help us progress more efficiently. It is also a wonderful opportunity for people to enter the cannabis space through a conventional academic path.” — Nam-Stephen in a press release

The college notes that last year the number of full-time jobs in the cannabis industry grew by 32% to 321,000, according to the Leafly Jobs Report.

The college, based in Manhattan, is currently accepting applications for the program.

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New York Medical Cannabis Program Removes Fees, Adds Whole Flower

10/06/2021

During their first meeting on Tuesday, the five-member board tasked with implementing cannabis legalization in New York permanently waived the $50 fee for medical cannabis patients and caregivers and made flower an approved form of medical cannabis in the state, LoHud reports. The board also approved allowing patients to obtain a 60-day supply of medical cannabis instead of just one month.

The medical cannabis reforms come as the board seeks to get the state’s nascent adult-use program back on track, which had stalled since the law was approved in March, due to the scandals of former Gov. Andrew Cuomo and a row between legislators and Cuomo over appointments to the Metropolitan Transportation Authority, the report says.

Patrik Jonsson, regional president of the Northeast at Curaleaf, said that the changes to the medical cannabis program “will empower patients to make choices that work best for their needs.”

“These changes will give New Yorkers access to whole flower that has undergone standardized procedures and testing protocols, ensuring quality and safety.” — Jonsson to LoHud

During the meeting, the board also approved Jason Starr as the chief equity officer for the adult-use program. Starr has worked previously as the director of the Long Island Chapter of the New York Civil Liberties Union and director of litigation for the Human Rights Campaign. In the role, Starr will be a key player in the development and implementation of the social equity plan included in the broad legalization law, which sets a goal that at least half of the adult-use cannabis licenses in the state are awarded to social and economic equity applicants.

Adult-use sales in the state are expected in the summer of 2022.

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Seattle Decriminalizes Psilocybin Possession & Cultivation

10/05/2021

The Seattle City Council voted unanimously yesterday to decriminalize psychedelics including psilocybin and similar substances, Bloomberg reports. Often colloquially called “magic mushrooms,” psilocybin is considered a Schedule 1 substance under federal law.

Officially, the change calls for local law enforcement (including police and prosecutors) to make naturally occurring psychedelic substances like psilocybin and ayahuasca their lowest priority.

“Our overall goal is to follow the lead of Oregon,” Seattle City Councilmember Andrew Lewis told Bloomberg ahead of the vote (Oregon was the first state to legalize the therapeutic use of psilocybin in 2020).

“There’s a huge demonstrated potential for these substances to provide cutting-edge treatments for substance abuse, recovery from brain injuries, [and other issues]. I want to make sure we’re following the science in our policies around regulating these substances.” — Lewis, via Bloomberg

Psychedelics reform is gathering steam across the U.S.:

Seattle is the ninth U.S. city to enact such reforms since Denver paved the way with a successful 2019 voter initiative.
Other major U.S. cities with the reforms include Oakland, Santa Cruz, Ann Arbor, and Washington D.C.
There are currently two efforts underway to decriminalize psychedelics in California: one as a planned voter initiative and the other would be through the Legislature.
A Maine proposal from earlier this year would legalize psilocybin therapy for anyone aged 21 or older.
Vermont considered psychedelics decriminalization last year.

Even the DEA signaled this year it was preparing for an influx of psychedelics-related developments after the federal agency called for a significant increase in psilocybin production for federal research and clinical trials.

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Corey Mangold: Consumer Safety-Focused Vape Hardware

10/05/2021

While cannabis vape products have never been more popular, the unfortunate reality is that most vape manufacturing processes are not closely audited or regulated for safety purposes. That puts much of the responsibility for consumer safety on vape brands themselves and some, like PurTec, are rising to the occasion with rigorous consumer safety tests.

For this written Q&A, we ask CEO Corey Mangold about why he founded the vape technology brand, the main risks faced by consumers in today’s cannabis vape market, the differences between tobacco vaporizers and cannabis vaporizers, his predictions for the ever-evolving vape industry, and more!

Check out the interview below!

Ganjapreneur: What was the inspiration behind your decision to create PurTec?

Corey Mangold: In 2017 I was using vaporizing products that all had a really awful user experience. My previous engineering experience led me to launch a great cannabis brand (Orchid Essentials) that utilized premium hardware.

What makes PurTec products different from commonly available alternatives on the market?

First and foremost, really the premium user experience is the best selling point. This is because we use eco-friendly materials and unrivaled component quality in our vape hardware. Our disposable options have long-lasting batteries to allow users to get more oil before the need to discard. The μKERA™ technology ensures your customers won’t experience a burnt taste, oil spit-back, harmful additives, or any heavy metal contamination. Instead, they get stronger vapor, unadulterated flavor, and above all, safety.

What are some of the main consumer safety risks that exist in the market today when it comes to vape hardware?

Unfortunately, there is very little transparency for consumers to understand what they are vaping with general products in the market currently. Much of this is due to the lack of regulations for this emerging industry. The risks that consumers face are numerous but include exposure to dangerous heavy metals.

Are vape products required to undergo testing before they can be sold to the consumer? If so, what kinds of tests do they undergo?

Because cannabis has not been federally legalized, the FDA is unable to put in place the necessary regulations to ensure consumer safety. Since this is the case, virtually no testing is done in order to protect the consumer and regulations vary by state.

Do cannabis brands use different technology than FDA regulated tobacco vapes?

Vape products in tobacco are wildly different from those used in cannabis and CBD applications. The primary reason is the thickness or viscosity of the oil. Ceramic is heavily used as the wicking platform for cannabis and CBD where cotton is primarily used for Nicotine because it’s a much thinner liquid. Nicotine products are also much more heavily regulated as the FDA and other international health agencies govern that industry. AFNOR standards for example are the EU standards for aerosol or emissions testing nicotine products. Cannabis doesn’t have such testing but will someday in the near future, hopefully.

How does PurTec read the pulse of the evolving vape consumer market to inform product innovation?

The best way to know what the future holds is to follow the consumer trends in tobacco vape as in the last 5 years we’ve seen the cannabis vape market closely follow nicotine but about 2-3 years behind. For example, disposables and pod’s are the primary products in nicotine where 510 threads are the leader in cannabis. 510 threads were the leader in nicotine until about 5 years ago, and in the last 1 year, disposables have become the leader in nicotine, and we are seeing that trend begin to take place in cannabis.

What kind of testing does PurTec hardware undergo?

Every single material we use gets lab-tested to ensure nothing is harmful for the customers. Once the vape hardware is put together, we emission test our products to help ensure customers use the safest products available to them!

How much of the manufacturing workflow do you oversee, and where are products manufactured?

Our manufacturing facilities are in China, however we have intimate details and oversee production through constant communication to be fully ingrained in the process.

What does the integration process look like for a brand to start developing products using PurTec hardware?

This really depends on the Brand. We believe in making the process as easy for them as possible. So, pending the need from our partners, we can truly tailor our services accordingly.

What are PurTec’s capabilities when it comes to helping brands create custom-branded and custom-designed products?

If you dream it, we can make it. PurTec offers help with design services for full wraps, aluminum metallic finishes, soft touch painted surfaces, and so much more.

How many brands are currently using PurTec pods, disposables, and 510 cartridges — and what markets are they available in?

We would rather not mention the amount of clients we have at this moment but we are happy to service anyone from US, Canada, Central America, and Europe!

Thank you, Cory, for answering our questions! Learn more about Cory Mangold and PurTec at PurTecDesigns.com.

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