Former CEO of California Cannabis Brand Charged With Fraud

9/28/2021

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The former CEO for Shryne Group, the California-based cannabis holding company and multistate operator behind the popular STIIIZY and Honeyleaf brands, was charged in Alameda County last week with multiple fraud felonies related to a different company.

Brian Mitchell — who recently stepped down as CEO “for personal reasons unrelated to Shryne,” the company said in a press release — was charged with one felony count of conspiracy to commit a crime, six counts of felony insurance fraud, and two counts of workers’ compensation fraud, the Bay Area News Group reports. The charges stem from his time at the helm of Signature Painting and Construction, Inc.

Mitchell co-founded Signature with Eric Oller, who is facing similar charges. Authorities also charged Yama Sekander — who owns a Concord, California-based company called A-1 World Class Painting — with one count of felony workers’ compensation fraud. The men were arraigned last Monday in Alameda County court and all three have pleaded not guilty to the charges.

According to the report, the scheme allegedly used A-1 World Class Painting as a shell company to pay Signature’s workers from 2017-18 and subvert workers’ compensation insurance costs. Prosecutors alleged that the trio misclassified the roles of their employees and the riskiness of the work so as to pay lower insurance premiums.

Authorities estimated that insurance carriers lost about $5 million through the scheme.

“If a business creates an environment where they falsely pay a lower insurance premium, that company has an unfair competitive advantage over one that is law-abiding.” — Alameda County District Attorney Nancy O’Malley, via Bay Area News Group

In a press release last week, Shryne Group announced it had appointed Jon Avidor, formerly Shryne’s President and Interim Chief Financial Officer, as the new CEO. Chief Development Officer Tak Sato was appointed to Avidor’s previous position as the company president.

“As Brian’s personal issues are not related to Shryne Group, there isn’t much more to share on that front,” Shryne Group’s Corporate Communication Director Audie Vergara told Ganjapreneur.

“I can share that we are all excited about the look ahead,” Vergara said. “Jon is an experienced business executive and lawyer with a long history of navigating complicated, dynamic business developments. He is the perfect leader for Shryne Group as we deepen our position in the California marketplace and beyond.”

Shryne Group employs about 2,200 people nationally and also sells products in Arizona, Nevada, and Michigan. The company’s flagship brand STIIIZY was recently named California‘s best-selling cannabis product line and the #1 vape brand in the country, according to the release.

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Community Groups Accuse ‘Cookies’ Cannabis Brand of Marketing to Children

9/28/2021

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Cannabis brand Cookies is being accused of marketing to children due to the company’s name and colors used at its storefronts, the San Diego Union-Tribune reports. The San Diego Planning Commission and the Torrey Pines Community Planning Group levied the charges prior to Cookies receiving approval in June to open its third location in Sorrento Valley, California.

In an interview with the Union-Tribune, Crystal Millican, vice president of retail for Cookies, defended the firm’s branding saying that the company’s use of blue in its signage is because the color has a calming effect and that its name is derived from cookies being made in many varieties—much like cannabis—and consumers need to find the strain (or flavor) they want.

“We don’t market to anyone other than our customers and patients. We obviously hear the concerns, and we will work to win over any neighborhood association.” — Millican to the Union-Tribune

Planning Commissioner James Whalen, who voted to approve the retail dispensary in June, told the Union-Tribune that he hates the name, adding that “it’s disingenuous to say it’s not attractive to young people.”

The commission approved the Sorrento Valley location 5-1. Commissioners said their decisions must be based on zoning law and compatibility rather than opinions about the name of the business, according to the report.

In San Diego, where officials initially objected to the name, Cookies had offered to change the storefront logo to a capital C logo with a plus sign, but the city’s cannabis ordinance does not allow logos, only letters.

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Cannabis Legalization Has Not Led to Increase of ‘Cannabis Use Disorder’

9/28/2021

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Less than 2% of people living in states that have legalized cannabis for adults have been diagnosed with “cannabis use disorder,” according to research published Monday in Substance Use and Addiction outlined by UPI. Comparatively, 1% of people living in non-legal states have received the diagnosis, suggesting that cannabis abuse has not increased in the states that have enacted the reforms.

Silvia S. Martins, director of the Substance Use Epidemiology Unit at Columbia University Mailman School of Public Health in New York City, told UPI that the researchers found cannabis use only increased among certain demographic subgroups during the “first few” years of legalized sales. She added there were no increases in cannabis consumption among youths aged 12-20 following the passage of adult-use laws.

“…There were virtually no increases in cannabis use frequency and cannabis use disorder. … We have not seen significant increases in frequent cannabis use and cannabis use disorders post-adult cannabis use legalization across most demographic subgroups, but we see, as expected increases in use in some demographic subgroups.” — Martins to UPI

The study found a 33% post-legalization increase in cannabis use among Hispanic people and a 21% increase among whites, but little to no change in cannabis use among Black people. Across all racial, ethnic, and age groups, daily cannabis use also did not increase, the report says.

Just over 16% of those living in states with access to adult-use cannabis reported past-year consumption, compared with just over 10% of those living in states where cannabis remains outlawed. Moreover, 11% of participants in legalized states reported past-month use, compared to 6% of those in non-legal states, the researchers found.

The study included data on cannabis consumption among nearly 840,000 people in the U.S. between 2008 and 2020 among people living in states that allow adult use and those that did not.   

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Study: 60% of Cannabis Consumers Would Get High With Grandparents

9/28/2021

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In a recent survey conducted by cannabis edibles brand Azuca, 60% of respondents said they would consume cannabis with a grandparent, according to a company press release.

The ‘Americans and Cannabis Consumption Survey’ was conducted online and had 1089 participants; the results were weighted to reflect gender and age distribution across the 18-60 year old demographic. Over half of the respondents were cannabis consumers.

Edibles surfaced as the preferred consumption method in the survey with “over half, 52%, of cannabis consumers sharing they prefer gummies to smoking (39%) or vaping (22%). Meanwhile, 53% said they have increased their edible intake over the pandemic but wish the effects of edibles could be felt sooner. Notably, 62% of consumers prefer edibles with little cannabis taste. The poll found 17% of the consumption cohort prefer beverages and only 13% reach for topicals as their cannabinoid intake preference.

70% of participants said they knew the difference between THC and CBD. 45% said they knew what micro-dosing was and how to do it. Additionally, 58% think cannabis is the future of pain management. The study also found that 64% of cannabis consumers use cannabis for relaxation, 40% for pain management, 43% for sleep aid, 37% for health and wellness, and 39% for recreation.

“The ‘Americans and Cannabis Consumption Survey’ confirmed what our team at Azuca has believed for years: edibles are the future of the cannabis industry,” said Kim Sanchez Rael, President & CEO of Azuca.

“The survey also reveals there is still a need to educate Americans about cannabis. While consumer demand is growing exponentially, now is the time to bring sophisticated and approachable products to market that people can trust.” — Kim Sanchez Rael via press release

The survey found that over half of Americans have not consumed cannabis. Out of those who have, 28% are daily consumers. The press release suggests nearly a third of cannabis consumers believe it is acceptable to consume cannabis at work. Finally, the poll found a majority of consumers, 60%, would purchase more expensive cannabis from a dispensary over cheaper illicit market cannabis.

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University of New Mexico to Offer Cannabis Certificate Program

9/28/2021

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The University of New Mexico (UNM) is partnering with cannabis education company Green Flower to offer non-credit online cannabis industry certificate programs starting in November.

New Mexico lawmakers passed adult-use legislation last April. Provisions of the law allowing adult possession, use, and cultivation took effect in June. State officials anticipate the industry will create more than 11,000 jobs and at least $50 million in revenue this year.

Audrey Arnold, executive director of UNM Continuing Education, called the industry “one of the fastest-growing new market opportunities in the country.”

“As providers of professional development and career education, we want to provide the knowledge and skills that our community will need to be successful in this rapidly growing market. We are thrilled as well for this innovative partnership with Green Flower who can offer solid education in this industry and an affordable and realistic approach in training.” — Arnold in a press release

The four program options include the Business of Cannabis; Cannabis Agriculture and Horticulture; Cannabis Law and Policy; and Cannabis Health Care and Medicine. Each program comprises three eight-week courses over a six-month period which students can complete at their own pace within that timeframe.

According to Green Flower’s website, the company is currently partnered with universities and colleges in California, Florida, Illinois, Missouri, Michigan, New York, Pennsylvania, Washington state, and Wisconsin. The partnership with NMU is its first in New Mexico.

The cost of the program at NMU is $2,950.

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2022 California State Fair to Host Cannabis Competition

9/27/2021

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The 2022 California State Fair will include a cannabis flower competition. It is the first time the fair will include such a competition, which will include indoor, mixed-light, and outdoor divisions.

The awards were developed in partnership between the California Exhibition & State Fair and Cultivar Brands, a California-based cannabis marketing and events agency. The competition will be scored through science-based analysis performed and certified by SC Labs, which will provide entrants with the required Certificates of Analysis as well as a PhytoFacts chemometric report that will identify the unique compounds of the submission to determine the award winners.

Cultivar Brands CEO Brian Applegarth said the awards “will showcase the California farmer, large and small, and the incredible cannabis flower that the state has to offer.”

“We will also educate, demystify the plant and challenge the stereotypes.” — Applegarth in a statement

California Exposition & State Fair Board Director Jess Durfee said state fair officials “are pleased to celebrate” the state’s legal cannabis industry. “For the past 166 years, the CA State 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, making the addition of cannabis cultivation a natural new category,” she said in a statement.

The California state fair will be the first state-sanctioned fair in the U.S. to host a cannabis competition. The New York State Fair allowed cannabis consumption during the event last month — the state’s legalization law allows cannabis smoking wherever tobacco is allowed — however, fair officials are reconsidering allowing cannabis to be smoked after complaints.

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Florida Senators Probe Delayed Licensing of Black Medical Cannabis Farmer

9/27/2021

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A group of Florida senators questioned the head of the state’s medical cannabis licensing department last week about the delay in awarding a cannabis business license to a Black farmer, Spectrum News 13 reports. Florida has issued 22 medical cannabis licenses so far but under a 2017 law, officials are required to issue at least one initial license to a Black farmer. The state, however, has so far failed to follow through on that mandate.

“The plight of the Black farmer in the state of Florida is real. ” — Sen. Darryl Rouson (D), chair of the State Agriculture Committee, during the hearing.

In response to the senators’ questions, Chris Ferguson, director of the Department of Health’s Medical Marijuana Use Division, said the delay has to do with litigation surrounding the license application process.

“We are still preparing the application process. It’s very comprehensive,” he told the committee.

However, the legal challenge Ferguson mentions was resolved in May when the Florida Supreme Court upheld the state’s vertical integration market model.

“It seems like this delay that we’re talking about is totally unnecessary,” Sen. Perry Thurston (D) said during the committee hearing.

The medical cannabis law in question is tied to Pigford v. Glickman, a 1999 landmark case in which Black farmers sued the U.S. Department of Agriculture claiming discrimination. The plaintiffs won in federal court but the case is still being played out in federal and state agriculture policy today, according to Every CRS Report and evidenced by Florida’s current medical cannabis licensing situation.

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Florida Considers Replacing Polystyrene Packaging with Hemp Products

9/27/2021

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Florida Agriculture Commissioner Nikki Fried announced that the Department of Agriculture and Consumer Services has started a rulemaking process to phase out the use of polystyrene products throughout the state. In a press release, the agency indicated that hemp could be used as an alternative source to replace the packaging.

Fried, a Democrat who is challenging Republican Gov. Ron DeSantis, said the phase-out “is a huge opportunity to create Florida jobs, at Florida businesses, using Florida-grown crops to create next-generation products that are made in Florida.” Last year, about 290 acres of hemp were planted throughout the state, according to the Agriculture Department. The agency also said the replacement products for polystyrene could be manufactured from sugarcane bagasse, which is also grown in Florida.

“Polystyrene may be convenient, but there is a hidden danger to public health from these disposable consumer products. Chemicals in polystyrene are not only linked to human and animal health concerns, but because these petroleum-based products take at least 500 years to decompose, their negative effects continue long after they’re thrown away.” — Fried in a press release

Justin Bloom, founder of Suncoast Waterkeeper, described the reforms as “bold, creative, and much-needed. I think there’s a thirst in our community and other communities for actions like this,” he said in a statement. “We’re limited by a legislature that is arguably captured by polluters and industry, and it won’t allow communities to embrace protective efforts to ban polystyrene.”

The phase-out is expected to begin next year with a maximum allowable amount of polystyrene to be sold or distributed decreasing each year.

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Mississippi Lawmakers Seeking Special Session, Would Include Medical Cannabis Bill

9/27/2021

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Legislative leaders in Mississippi are asking Gov. Tate Reeves (R) to call for a special session in order to, in part, enact a medical cannabis program, CBS42 reports. Last year, Mississippi voters had approved a medical cannabis ballot initiative; however, the state Supreme Court in May tossed out the initiative, ruling the ballot process is out of state and the proposal was improperly on ballots.

The medical cannabis program backed by lawmakers is not the same as the voter-based initiative. State Rep. Lee Yancey (R) told CBS42 that the program would help patients with epilepsy, multiple sclerosis, and cancer. The proposal, which would require a three-fifths majority due to its tax implications, also includes opt-out provisions allowing municipalities to ban cannabis industry operations within 90 days. Those bans could be overturned by voters in local ballot initiatives, the report says.

The plan could also face an uphill battle from the state Agriculture Department after Commissioner Andy Gipson said in a letter to state Attorney General Lynn Fitch last month that he didn’t believe his agency could help facilitate the state program because cannabis remains federally outlawed.

“If the Mississippi Legislature were to enact and the governor were to sign into state law a medical marijuana program, how would it be legal under the federal act to truck, ship, deliver, manufacture, distribute or dispense any part of the cannabis seed or plant as a Schedule 1 substance into the state of Mississippi?” — Gipson wrote in the letter.

Gipson has also said he has a legal challenge drafted in the event lawmakers approve the reforms.

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Washington No Longer Automatically Denies Cannabis Licenses for Felons

9/24/2021

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Starting next month, individuals with felony or misdemeanor convictions will no longer be automatically barred from receiving a cannabis license in Washington State, KOMO News reports. Under the new rules, felonies will still be scrutinized but will no longer be an automatic disqualifier.

Rep. Melanie Morgan (D), chair the state Social Equity on Cannabis Task Force, said officials “wanted to bring parity in the disproportionality” in the arrest rates between Black and brown people for cannabis crimes compared to white people.

“The bottom line is bringing parity to the industry and making sure that Black and brown people have equal access to this industry in ownership.” – Morgan to KOMO News

A Marijuana Arrest Research Project study found that although Black people and Latinos use cannabis at lower rates than white people, Black people were arrested for cannabis-related crimes at 2.9 times the rate of white people and Latinos were arrested at 1.6 times the rate.

According to the Liquor and Cannabis Board (LCB), the board will now perform a “threshold review” of applicants’ criminal histories and will take into consideration time since the conviction, nature of the offense, the relationship of the offense to the nature of the work performed, number of offenses, and any relevant rehabilitation associated with the crime.

The rule has already been adopted by the LCB and takes effect on October 2.

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Law Enforcement Take Educational Tour of Tennessee Hemp Farm

9/24/2021

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The sheriff in Madison County, Tennessee recently hosted an educational workshop that highlighted the differences between hemp and THC-rich cannabis, or marijuana, according to the Jackson Sun. Focusing on the differences between the two plant variations and their cultivation, harvesting, and processing practices, the event hosted state agencies and concluded with a tour of Hemphill Farms.

“The conference was excellent. We had lots of feedback from across the state. This is actually the first time it’s ever been done in the state.” — Sherriff John Mehr, via the Jackson Sun

In addition to the state Department of Agriculture, the Tennessee Bureau of Investigation (TBI) attended along with the TBI lab and other local law enforcement agencies. According to Mehr, attendees learned skills that will help them differentiate between hemp, CBD, and THC-rich cannabis products and understand more about the new regulations.

The sheriff said officers can “run into problems” distinguishing hemp from cannabis, remarking, “When we’re out here making stops on the road, and sometimes getting several pounds of marijuana, someone could get stopped that actually has hemp.”

Mehr says another issue is when Tennesseans call law enforcement to report an illegal cannabis grow when in fact the plants are legal hemp.

“Lots of times these hemp farms are not huge,” the Sherriff said in the report. “Which makes them look less official … But you can’t just plant it anywhere, it has to be approved (by the state). And it’s up to us to educate our officers that these growers may be entirely legal — lots of times neighbors or somebody will see it and say ‘That’s marijuana growing!’ but it’s just hemp.”

The sheriff says he is enthusiastic for more events but will have to wait until new hemp and medical cannabis laws are passed in the next legislative session.

“The tour was great—people could see it first hand, and see the barns and learn the process they go through,” he said.

 

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Kansas City Ends Pre-Employment Cannabis Screenings for Most City Employees

9/24/2021

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The Kansas City, Missouri City Council on Thursday ended pre-employment screenings for cannabis for most city jobs, the Kansas City Star reports. The ordinance, which was approved 11-2, includes exemptions for police, positions requiring a commercial diver’s license, jobs involving the supervision of children, medical patients, the disabled, and other vulnerable people.

Applicants and employees can still be tested for other drugs under the ordinance.

Mayor Quinton Lucas said on Twitter that the ordinance represents “one step of many in becoming a fairer city.”

“Opportunities should not be foreclosed unnecessarily. Glad to see passage of our law eliminating pre-employment screening for marijuana at Kansas City government for most positions.” – Lucas via Twitter

The ordinance aligns Kansas City’s hiring rules with the city’s cannabis laws, which were relaxed in 2017 when voters decided to decriminalize cannabis possession up to 35 grams. Cannabis possession under the decriminalization law can lead to a $25 fine.

In June 2020, the City Council passed an ordinance to remove cannabis and paraphernalia possession as a violation of the City Code of Ordinances, according to a press release from Lucas’ office.

In February 2020, Lucas implemented a Mayoral Marijuana Pardon Program which allows individuals previously convicted for low level cannabis and paraphernalia possession to apply for a pardon from the mayor. He issued his first pardon under the program in August 2020.

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Crain Communications Acquires Green Market Report

9/24/2021

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Detroit, Michigan-based Crain Communications has acquired cannabis industry news site Green Market Report, which was founded by Debra Borchardt, a financial journalist and former Wall Street executive, and Cynthia Salarizadeh, a public relations expert and legal cannabis industry insider, in 2017.

KC Crain, president and CEO of Crain Communications, said adding the cannabis-focused site is “a natural fit” with Crain’s other brands because of Green Market’s “focus on the financial, business and economic side of the cannabis industry.”

Green Market garners 150,000 monthly page views, Crain said in a press release announcing the acquisition.

“Crain is one of the highest quality business news organizations in the country. Their team, resources, and respected journalism will make the perfect partner as Green Market Report continues into the future. The combination of Crain’s experience and Green Market Report’s expertise will turn us into a leader in the industry, and I’m personally excited to be a part of that growth.” – Borchardt in a statement

The deal comes two years after Crain acquired GenomeWeb – an online news organization covering trends in genome sequencing. The company said both deals contribute to its “overarching goal of portfolio diversification.”

Crain also owns Automotive News, Ad Age, Modern Healthcare, Plastics News, and Pensions & Investments.

Financial details of the deal were not disclosed. The deal is expected to be finalized by the end of the month.

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Bianca Blanche: Cannabis Retail Strategies and Industry Wisdom

9/23/2021

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In this episode of Fresh Cut, host Cara Wietstock meets with Bianca Blanche, a former budtender turned host of That Budtender Podcast. Bianca’s podcast is an inside look into life at the dispensary and “what really goes down in the back room.” Cara and Bianca discuss how the retail sector can improve, what attributes make a good budtender, and how to grow a career within the cannabis industry in a conversation between two former career budtenders that gets pretty real and pretty fun.

Check out more Bianca on her podcast That Budtender Podcast.

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Report: 2021 Global Cannabis Sales Will Near $31B

9/23/2021

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In a new report, cannabis industry data and insight firm BDSA estimates that global cannabis sales for 2021 will near $31 billion—an increase of 41% of last year’s sales. The analysts also suggest that global sales will reach $62.1 billion by 2026, representing a compound annual growth rate (CAGR) of more than 15%.

In the U.S., BDSA forecasts cannabis will surpass $24 billion this year, a growth of 38% over 2020’s sales, and anticipates the U.S. to reach $47.6 billion in 2026, a CAGR of 14%.

Kelly Nielsen, vice president of insights & analytics for BDSA, said that the industry “continues to show exceedingly rapid growth, particularly within the U.S. market.”

“New markets, both medical and adult-use, are developing at a faster pace than observed in the past, and states are transitioning from medical-only to fully legal in a shorter time frame. … The industry continues to thrive, with sales exceeding expectations in several markets. This, compounded with more states passing legislation to legalize cannabis, drove the increase in BDSA’s outlook for the industry. The expansion and growth of adult-use markets in the U.S. continue to be the driving force of global cannabis sales.” – Nielson in a press release

In Canada, BDSA predicts cannabis sales this year will total $4 billion and will grow to $6.7 billion in 2026, a CAGR of 11%. BDSA estimates that Ontario, the largest cannabis market in Canada, will spearhead this increase, growing by almost 90% YoY in 2021.

According to the analysis, international cannabis sales will reach nearly $7.9 billion in 2026, up from $1.7 billion in 2021. BDSA said that international sales will be driven by medical cannabis markets in Mexico, Germany, and the U.K.

In June, Mexico’s Supreme Court decriminalized cannabis nationwide for adults but the order does not force the nation to allow legalized sales. In Germany and the U.K., non-medical cannabis use remains outlawed.

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Former Mayor Sentenced to Six Years in Prison for Extorting Cannabis Brands

9/23/2021

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The former mayor of Fall River, Massachusetts, Jasiel Correia, on Tuesday was sentenced to six years in prison for extorting cannabis companies during his time in office. U.S. District Court Senior Judge Douglas Woodlock also imposed a three-year sentence of supervised release for the disgraced 29-year-old, who was convicted in May on charges of wire fraud and extortion.

Correia was arrested in 2019 for extorting cannabis companies in exchange for non-opposition letters, which are required under state law in order for cannabusinesses to open in a municipality. He was initially indicted in 2018.

Woodlock on Monday overturned tax and wire fraud convictions related to bilking investors in his SnoOwl app. The judge determined that prosecutors didn’t prove those charges but left the extortion convictions in place.

Correia had solicited bribes ranging from $75,000 to $250,000 in cash, campaign contributions, and other payments from cannabis industry operators and in exchange provided the non-opposition letters.

Nathaniel R. Mendell, acting U.S. attorney for the District of Massachusetts, said that the former mayor “lied to investors, sold his office, and has no remorse for his crimes.”

“Jasiel Correia was a corrupt and deceitful politician who could only be stopped by federal prosecution. Now he is a felon and will be a federal inmate.” – Mandell in a press release

Joseph R. Bonavolonta, special agent in charge of the Federal Bureau of Investigation, Boston Division, described Correia “as a pervasive liar who has shown absolutely no remorse or empathy for his victims.”

“Jasiel Correia’s conscious decision to fleece investors, extort hundreds of thousands of dollars in bribes, and cheat on his taxes has now cost him his freedom,” Bonavolonta said in a statement.

Corriea had maintained his innocence even after his conviction and has said he would file an appeal.

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Ohio Details Licensing Info for Additional 73 Dispensaries

9/23/2021

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Ohio has released information related to the 73 provisional medical cannabis licenses it plans to issue in the coming months, according to JD Supra.

The license application window will be held from November 4-18, 2021, and each license carries a $5,000 application fee. In order to qualify for a license, applicants must have a location already secured for their dispensary and must submit a site plan and have local zoning approval.

Geographically, Ohio is divided into 31 dispensary districts. License winners will be chosen by lottery and the license expansion in any given district will be approved according to the number of “available provisional licenses” in that district. Licensees are limited to owning a maximum of five dispensaries. Assuming all 73 licenses are awarded, Ohio could have up to 130 medical cannabis dispensaries.

Dispensary drive-through windows will also be permitted under the regulations released by the state, according to the report.

The Ohio Board of Pharmacy approved the expansion in April, which essentially doubles medical cannabis access in the state. The Board felt the expansion was necessary due to the number of registered patients far exceeding their estimates.

Of the initial 60 dispensary licenses, only 57 have been approved to date. The state planned dispensaries for between 12,000 and 24,000 patients registering over a two-year period. At the time the expansion was approved, there were 92,772 registered patients in Ohio. The Board believes each dispensary can serve up to 600 patients.

Activists hope that by expanding the number of dispensaries, Ohio’s high medical cannabis prices will fall. A 2020 survey of Ohio patients found that 58.4 percent believed that high medical cannabis prices were an issue for the program.

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‘NJ Weedman’ Going to Try for State Cannabis License

9/23/2021

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Ed Forchion, better known as “NJ Weedman,” is going to try to get a license to legally sell cannabis in his home state, he said in an interview with Politico. Forchion has been selling cannabis, illegally but openly, in Trenton since at least 2016.

Forchion estimates that he has already served between 1,100 and 1,200 days of incarceration for selling cannabis. His storefront was most recently raided in 2016 and he spent more than a year in jail awaiting trial on witness tampering charges, for which he was acquitted. The related drug charges were dismissed, the report says.

Forchion said that with the state’s regulations allowing micro-businesses—those that sell less than 1,000 pounds of cannabis per month—he believes that officials “are trying to bring the black market” into the legalized market.

“Up until recently, I was having a nightmare that rich white guys were capitalizing off what the legacy market built as far as our base of customers—that they were going to walk in, pay our politicians and get this industry created for them. In the last few months, I’m believing.” – Forchion to Politico

Forchion added that the state’s rules will not disqualify him from the legal market because of his cannabis-related criminal history. The rules state that the state program is “expected to offer some economic benefit to people from communities that have historically been excluded from economic opportunities, particularly those with prior criminal convictions, people of color, and disabled veterans.”

Forchion, who ran for governor in a write-in campaign, said he wants to keep his shop in Trenton open as a celebration of the “culture of potheads.”

The state’s licensing process is already behind schedule as officials missed last week’s statutory deadline to begin accepting industry applications.

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Kristi Price: Black CannaBusiness Magazine & The Black CannaConference

9/22/2021

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Between ambitious entrepreneurs, investors, and a hungry consumer base, the cannabis space is chock-full of eagerness for this industry to succeed—but that energy has so far failed to cultivate an equitable and diverse space, which is unacceptable considering that the industry was built on the backs of social justice advocates and the over-incarceration of minority communities.

In this Q&A, we ask Kristi Price about her efforts through KRMA Media and the Black CannaBusiness brand to educate and inspire Black and Brown entrepreneurs who are considering entering the cannabis industry. We also discuss the upcoming Black CannaConference in New Orleans this November, The Black Fridays Podcast—which Kristi hosts to highlight successful BIPOC entrepreneurs and industry allies conducting equity work—and more!

Check out the full interview below.

Ganjapreneur: What career sector did you work in before moving into the cannabis space, and how has that experience helped as you build KRMA Media Inc.?

Kristi Price: Prior to cannabis I was a consultant in other previously prohibited/highly regulated industries of alcohol and tobacco. I also spent some time in the energy drink industry. There are certain nuances to doing business in highly regulated industries. We are limited in the ways that we can market so being creative and knowing how to create the box for others to think of it becomes a mantra. It’s not enough to just be creative, you have to introduce new concepts.

What inspired you to work in cannabis publishing and events?

I recognized that there was a void in both spaces of B2B content curated for people of color. I wanted to take the conversation about Black and Brown community beyond the social equity conversations and the “there are not enough people of color in the industry” statistics…I wanted to do something about it.

When did you found Black CannaBusiness Magazine under KRMA Media, and how does it serve the company mission?

I founded KRMA Media in February of 2019 and the Black CannaBusiness brand is our flagship. KRMA is an acronym for the four pillars of Knowledge, Resources, Minority Curation, and Allyship. These pillars are the foundation of everything that we do, and they are constant reminders of our mission to create a more inclusive industry while helping our allies to practice “actionable inclusion “ by providing them with an opportunity to build authentic relationships within the BIPOC cannabis community.

How do you choose guests for The Black Fridays Podcast? What topics do you and will you cover on the show?

The team and I keep our fingers on the pulse of the community to keep up with all of the amazing individuals and brands that are doing their part to build great BIPOC businesses. We also seek out industry allies that are leading the DEI charge through their equity programming and commitments. It’s important that BIPOC professionals are amplified as well as the organizations that are “walking the inclusion talk”…

Who makes up the target audience for the Black CannaConference, and what can they expect to gain from the event in New Orleans?

Our target audience is definitely BIPOC professionals, owners, and advocates. But we also target organizations that are seeking to create a more diverse workforce or developing initiatives that will level the playing field for people of color in the regions that they do business.

How many attendees and exhibitors are projected to attend?

We are expecting 2,000 attendees and over 100 exhibitors.

What kind of exhibitors will have booths on the expo floor?

Cannabis businesses, businesses that are adjacent to cannabis like wellness centers and salons.

Why was New Orleans the right location for this B2B conference? Will the event be hosted in more locations in the future?

The national conference will be held on NOLA every year. I chose New Orleans because it’s everybody’s favorite southern city that just happens to be predominately Black and Brown. It is also close to my alma mater and HBCU, Southern University, that happens to be leading the charge in cannabis education and awareness in the HBCU network and academia et large.

Why is it essential to provide an event like the Black CannaConference where Black entrepreneurs can connect and do business?

The Black CannaConference is essential simply because we are the first and only national event for people of color, so first it’s about representation in the professionals’ cannabis conference space. Events like this are critical to helping the BIPOC community network, learn and plan for the future of cannabis from a different perspective. It’s the only way to ensure that as a community, we are on the same page about what we hope to accomplish collectively and as individual professionals .

Are there any speakers in place yet for the 2021 CannaConference? Where can people apply if they’d like to speak?

We will have over 40 speakers speaking on topics ranging from Cannabis 101 to Dispensary operations and everything in between. From seed to sale we will have dynamic speakers presenting on business topics, agricultural and hemp, technology, Black politics, and cannabis policy, raising capital, and more. We have 6 powerful keynote speakers: Wanda James, Al Harrington, Dr. Chanda Macias, Karim Webb, Dr. Rachel Knox, and Jesce Horton.

What topics will speakers cover for the 2021 conference? Will the programming be relevant to a nationwide audience or be regional?

The topics that will be covered will be a mix of regional and national content. We have 10 “focus” areas found on the site: https://www.blackcannaconference.com/program-overview/.

Are there any after parties or networking events planned for the conference weekend?

Yes, we do not have the final list but there will be a VIP reception on the day before the conference, November 17th, and a leadership breakfast for equity non-profits and associations on November 19th.

How can allies best support the conference and magazine?

The best way to support the conference and the magazine is by connecting with us and letting us know that they are interested in partnering with our efforts through sponsorships and advertising. It’s also important that allies support us through sharing our mission with like-minded organizations.

Thank you, Kristi, for answering our questions! To learn more, visit BlackCannaBusiness.com.

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U.S. House Approves SAFE Banking Act… Again

9/22/2021

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The U.S. House of Representatives on Tuesday again approved the SAFE Banking Act which would allow banks to work with cannabis firms without fear of penalty, Bloomberg reports. It marks the second time this year—and the fifth time since 2019—that the chamber has approved the legislation, which has yet to be considered in the Senate.

Prior to the House vote, U.S. Cannabis Council Chief Executive Steven Hawkins noted that most of the legal cannabis industry’s 2020 transactions—more than $17 billion—were cash sales.

“Forcing legitimate, well-regulated cannabis businesses to conduct most of their business in cash is anachronistic and a clear threat to public safety.”—Hawkins via Bloomberg

Rep. Ed Perlmutter (D-CO) said that allowing the industry access to normal banking services would drive money into the economy and offer good-paying jobs.

“[The SAFE Banking Act] will strengthen the security of our financial system & keep bad actors like cartels out,” he wrote on Twitter following the bill’s passage on a voice vote. “Most importantly, it will reduce the risk of violent crime in our communities. It’s passed the House 5 times. We cannot wait any longer to address this public safety threat.”

While technically controlled by Democrats, the Senate is split 50-50 between the parties and the legislation would require support from either some Republicans or conservative Democrats in order to pass the chamber.

In the Senate, the bill is in the Committee on Banking, Housing, and Urban Affairs.

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90% of Maine Towns Prohibit Adult-Use Cannabis Sales

9/22/2021

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A new report by Maine Public Radio reveals that 90% of Maine towns do not allow adult-use cannabis operations within their borders.

Although cannabis receipts have steadily increased since adult-use sales began in the state last October, only 47 of Maine’s 500 towns and cities permit any adult-use cannabis activity. These communities comprise just 29% of the state’s population, MPR reports.

Curiously, some communities, like Etna, have banned retail stores but permit cultivation operations. Bradford, Corinna, Corinth, Dixmont, Glenburn, and Millinocket have all passed ordinances outlawing retail stores. Dover-Foxcroft passed a ban in 2017 but has a non-binding question on the November ballot asking citizens if adult-use cannabis is right for the largest city in Maine’s most conservative county, Piscataquis, according to the report.

“The measure on the ballot is to see if people want the activity at all,” said Selectboard Member Stephen Grammont. “The weird thing about Maine is that it’s conservative but also libertarian.” He told MPR that the referendum is not binding but if it passes but the city will be “obligated” to follow the outcome.

Other Maine towns like Stacyville, which has a population of just 380, have embraced adult-use cannabis for its economic impact, Stacyville Selectboard member Alvin Theriault said in the report.

“We don’t have any industry here. We don’t have anything. So why not?” — Theriault, via MPR

The industry’s slow rollout could be due to a fear of change, or because cities and towns do not see much in it for themselves. After all, cannabis tax revenues go to the state, according to Joel Pepin, President of the Maine Cannabis Industry Association.

“It takes time for stigma to change, and it takes time for operators to jump in and participate in the market,” Pepin said in the report. “But I mean, the market’s been launched now for a year and it seems to have already made a tremendous amount of progress.”

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Pennsylvania Bill Would Protect Medical Cannabis Patients from DUIs

9/22/2021

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A bill introduced in Pennsylvania aims to protect the state’s medical cannabis patients from driving under the influence charges. The bill includes both a Democratic sponsor, Rep. Chris Rabb, and a Republican sponsor, Rep. Todd Polinchock,

The bill would offer protection from DUI charges for patients enrolled in the state medical cannabis program who are not impaired when they are pulled over—the same as any other prescription medication, the sponsors said in a March 12 memorandum attached to the bill.

In a statement, Rabb said that medical cannabis patients “can take a minuscule amount of medicine for their ailment and weeks later, with traces of cannabis still in their system, be subject to arrest on a DUI charge if pulled over—not because they’ve driven impaired, but because our state laws haven’t caught up with the science.”

“And, if you think you don’t know someone who falls into this category—a person who has been prescribed medical cannabis and who drives and is fearful of the potential DUI charge they could face—you’re wrong. I am a card-carrying medical cannabis patient, and I drive regularly, including in and around Philadelphia and to Harrisburg conducting the people’s business.”—Rabb in a press release

Polinchock noted that the legislation “puts medical cannabis on the same level as other prescription pain relievers.”

“It helps many Pennsylvanians, including many of our seniors,” he said in a statement. “It’s time to remove the stigma and treat this drug as we do others.”

The bill is currently in the House Transportation Committee.

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Medical Cannabis Patients in Connecticut Can Cultivate Cannabis on Oct. 1

9/22/2021

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Beginning October 1, medical cannabis patients in Connecticut can grow their own medicine, the Hartford Courant reports. Patients 18-and-older will be allowed to grow six plants individually and up to 12 plants regardless of the number of adult occupants in the home.

The reforms that take effect October 1 also outlaw giving cannabis “to a domesticated animal” and violating those provisions could lead to Class C misdemeanor charges.

The law is separate from the state’s adult-use legalization law, which was approved by lawmakers in June and will allow adults 21-and-older to grow their own cannabis starting in July 2023.

The law also includes new restrictions on tobacco use that ban smoking within 25 feet of buildings that cater to the general public, including restaurants and retail stores. Communities with more than 50,000 people must designate areas where individuals can consume cannabis, but the decision on where those locations must be is up to municipalities.

The law also bars smoking in hotels, motels, prisons, and psychiatric facilities, among others, and special smoking rooms that had been previously allowed by large employers will no longer be permitted, the report says. The general rule is that a person can smoke cannabis anywhere they can smoke cigarettes; however, towns retain the authority to make the final decisions based on local zoning rules.

Cannabis possession by adults under the broad legalization law took effect July 1. Those provisions allow adults to possess up to 1.5 ounces of cannabis.

Earlier this month, Connecticut Commissioner for the Department of Consumer Protection, Michelle Seagull, said that the timeline for adult-use sales may be delayed, noting that while officials have “been suggesting that there will likely be sales by the end of 2022” they would “have to see how things play out in the next few months.”

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California Cannabis Brand Sues Regulators Over High Taxes, Illicit Market

9/21/2021

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California licensed operator Catalyst Cannabis Co. last week filed a lawsuit against the state Department of Cannabis Control (DCC) over the agency’s failure to address so-called burner distributions which the company says are the result of the state’s high cannabis taxes.

In a press release, Catalyst CEO Elliot Lewis said that state cannabis regulators “know that burner distributions exist but will not admit it publicly because they want to pretend like this problem they helped create doesn’t exist.”

“I want to be clear—our goal is to outline a problem that the state has created by failing to work with the cannabis industry on fair taxes. The cannabis industry has the biggest potential for job growth and good paying jobs with tons of upward mobility since the tech boom. The burner distributions are a symptom of the state’s complete incompetence as well as their unwillingness to admit what they know, they have screwed up the entire legal cannabis market.” — Lewis in a statement

The state’s cannabis excise tax is set at 15% and municipalities can set their own rates.

Lewis further describes the state’s cannabis tax as “smothering” the industry and that the state is treating cannabis industry operators as “second class” members of the state’s business community. He added that the tax policy is “aimed to discriminate against the entire industry.”

“It’s laughable that the state officials want to talk about good-paying jobs, racial justice, social equity, and safe access while putting in place policies that will never allow any of this to happen,” Lewis said in the statement. “Congratulations California you have figured out how to continue the War on Drugs. Up your game!”

The goal of the lawsuit, which claims the DCC is not enforcing state law, is to reveal what the agency knows about the burner distributions and bring regulators to the table on industry tax reform.

This is not Catalyst’s first time taking legal action against government officials: in a February podcast interview, Lewis told Ganjapreneur that Catalyst has successfully litigated against cities in the past. “Look, there’s a lot of corruption that goes on in this industry,” he said. “It’s just a fact. We don’t engage in corruption.”

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