Why Solventless Vape Cartridges Are the Holy Grail for Processors

7/12/2021

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Most experienced cannabis consumers agree that solventless products, especially live rosin, are the best-tasting and highest quality concentrate products available. As their popularity grows, solventless concentrates will continue to pique the curiosity of more (and more varied) cannabis consumers.

Most cannabis concentrates are consumed through dabbing, which requires additional equipment, and for years, this meant concentrates were relatively inaccessible for rookie cannabis consumers. But with the proliferation of portable vaporizers, particularly vape pens, cannabis concentrates have never been easier to consume and enjoy — and through solventless vape pens, even cannabis newcomers can now experience the highest quality and most flavorful products on the market!

However, while solventless vape pens are the best way to bring the pinnacle of vape flavors to inexperienced consumers, the cannabis processors who pursue this route will only find success through careful planning and skill acquisition. If a cannabis operator is planning out their solventless division, then solventless vape cartridges are very likely their ideal end-goal, but getting there requires hard work.

Requirements: premium product, expert extractors

First, one requires access to high-quality cannabis and a team of dedicated professionals who are able to produce — and, critically, reproduce — high-quality rosin extracts with consistent flavor, appearance, and viscosity between batches.

High-quality, resinous Cake Crasher cannabis flower. Image shot by Erik Christiansen (Instagram: @erik.nugshots)

Second, in-house solventless vape carts tend to require a significant amount of R&D work and by their very nature of being a solventless product, operators are going to have to use up a lot of high-quality cannabis in the name of fine-tuning a consistent product. Additionally, most standard vape cartridges are not suited for the viscosities and terpene complexities afforded by solventless concentrates, which either means more in-house R&D or working directly with a specialized vape hardware manufacturer — and often both, as you may find that not everything that is advertised as solventless-friendly will churn out a satisfactory product, so expect to do some shopping around.

How are solventless vape cartridges made?

As we hinted above, solventless vape cartridges — like any solventless product — must start with high-quality cannabis flower. Note, however, that flower rosin itself doesn’t tend to work in vape cartridges without a cutting agent (and then what’s the point of going solventless?) so the source material needs to be extracted either as a high-quality ice water hash or dry sift.

510 cartridge with viscous solventless hash oil processed at the Kush Masters lab in Boulder, CO (Instagram: @kmlabs.co)

The biggest issue facing operators in the path toward solventless vape carts is likely going to be nailing the viscosity of one’s product. Therefore, once the source material has been prepared and pressed into rosin, the final step involves removing the THCA — a compound found in fresh cannabis trichomes which does not translate well to vape cartridges — and then recombining until the desired viscosity is achieved.

Typically, this final step of mechanical separation is achieved through what’s known colloquially as “jar tech,” the strategies for which can vary wildly from extractor to extractor, or by pressing the product through a very fine filter at low temperatures, which siphons off some of the raw solventless terpenes, then pressing the material again at high temps and recombining. The resulting material can then be loaded into your solventless-appropriate vape carts for consumption.

Solventless hash oil for cartridges made by Collin Palmer (Instagram: @vessellifescience) via jar tech

Roadmapping a successful solventless cartridge launch

Solventless vape carts have created a unique niche for the cannabis industry because while they can be more demanding for a processor to get set up, they also lend a certain prestige to one’s brand.

These are the primary steps and issues to watch out for when building toward rosin vape carts:

  • You will need the specs to make high-quality solventless concentrates like ice water hash and cannabis rosin — and the ability to create both will afford you the most and best options. This means having the proper equipment, employing well-trained staff and, of course, having access to high-quality source material.
  • Once you have the means and talent to make the product, the hard part begins. Even expert extractors can have difficulty producing a vape-friendly solventless product. According to most processors, getting the viscosity for a vape cartridge is the primary issue in the research and development process — your team should expect frustration and setbacks, but that is the price to pay for having such refined wares! Solventless experts like the team at PureCannalabs can offer guidance during this and the following processes.
  • You must be diligent when selecting hardware: not all vape cartridges are made equal, and not all standard vape cartridges will work for a solventless product (even if the manufacturers say that they do). Expect to spend some time and money searching for the perfect hardware.
  • Lastly, and most importantly, you and your team must master this process! That means everything from scratch to finished product must be 100% reproducible and consistent.

Are solventless vape cartridges worth the extra effort?

If you already have or are pursuing a solventless division, rosin vape cartridges are very likely your best end-game move for expanding your brand’s footprint into a larger customer segment. Recent market data suggests that solventless concentrate sales are one of the industry’s fastest-growing segments, and rosin vape carts represent the most accessible form of this luxury cannabis offering.

Price-wise, solventless vape carts inherently cost more than other cartridge-based concentrates as the production process is more involved and demand is only growing. Additionally, while the flavors of solventless concentrates are more pronounced than other products, they are also more delicate and may not keep as well. This means that each solventless cartridge typically contains less product than their solvent-based counterparts so they are less likely to spoil before being consumed. This creates another advantage for cannabis operators with a successful solventless division, as not only do rosin carts drive the highest price points but they also tend to be sold in smaller quantities.

Ultimately, only the most dedicated cannabis companies may attempt to offer solventless vape carts, and only adept operators will succeed. But if you can successfully launch such a product line, it demonstrates real dedication and passion for the cannabis industry and its widely varied and rapidly growing consumer base.

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WADA Says It Cannot Overturn Sha’Carri Richardson’s Suspension

7/12/2021

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In a letter to U.S. Representatives Jamie Raskin (D) and Alexandria Ocasio-Cortez (D) the World Anti-Doping Agency (WADA) said that it cannot reconsider the suspension Sha’Carri Richardson although the agency sympathizes “with the circumstances” of the case and applauds the sprinter’s “accountability for accepting that the rules are in place for athletes worldwide.”

Richardson was suspended from competition for 30 days on July 1 following a positive test for cannabis following USA Track & Field trials in Oregon last month. She was also left off the 4X100-meter relay team which will ultimately prevent her from competing at the Olympic Games at all. In a statement following the decision to keep her off the relay team, USA Track & Field said it “fully agrees that the merit of the World Anti-Doping Agency rules related to THC should be reevaluated” but “it would be detrimental to the integrity of the U.S. Olympic Team Trials for Track & Field if USATF amended its policies following competition, only weeks before the Olympic Games.”

Richardson, considered the fastest woman in the world, said she had only used cannabis to cope with the death of her mother. During an interview with NBC’s Today Show last week, she apologized for her cannabis use.

“I know what I did. I know what I’m supposed to do. What I’m allowed not to do and I still made that decision. But [I’m] not making an excuse or looking for any empathy in my case.”—Richardson during a Today Show interview

In the letter to Raskin and Ocasio-Cortez—both members of the House Subcommittee on Civil Rights and Civil Liberties – WADA notes that cannabinoids have been on the Prohibited List since before the agency took over oversight of drug testing from the International Olympic Committee in 2004.

WADA explains in the letter that athletes are only tested for cannabinoids in-competition, which is defined as “the period commencing at 11:59 pm on the day before a competition in which the athlete is scheduled to compete through the end of such competition and the sample collection process related to such competition.”

“Therefore, the Prohibited List has no impact on whether an athlete chooses to use cannabis at any other time of the year for recreational or other purposes. Also, the decision limit for triggering a positive test for cannabis is 180ng/mL,” WADA said in the letter. “According to the current science, an athlete who occasionally uses cannabis, even days before a competition, would be extremely unlikely to test positive with this decision limit.”

Thus, the agency asserts, the civil liberties of athletes “are not burdened by cannabinoids being included on the Prohibited List for in-competition testing only.”

WADA further notes that, despite broad legalization in states throughout the U.S., it has never “received any objection from U.S. stakeholders concerning the inclusion of cannabinoids on the Prohibited List.”

“On the contrary, as has been reported by some media, the U.S. has been one of the most vocal and strong advocates for including cannabinoids on the Prohibited List,” the letter states. “The meeting minutes and written submissions received from the U.S. over nearly two decades, in particular from [U.S. Anti-Doping Agency], have consistently advocated for cannabinoids to be included on the Prohibited List.”

WADA said that it is “not in position to vacate the results of Ms. Richardson’s test in Oregon, the 30-day suspension imposed by USADA, nor the decisions of USA Track and Field regarding her participation at the Tokyo Olympics.”

Meanwhile Nike, which has sponsored Richardson since 2019, said the company appreciates the athlete’s “honesty and accountability and will continue to support her through this time.”

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Tennessee Bill Would Put 3 Non-Binding Cannabis Policy Questions on 2022 Ballots

7/12/2021

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A bill introduced last week in Tennessee would put three non-binding cannabis reform questions to voters on 2022 election ballots and require the results of the polling to be sent to the state’s General Assembly.

If approved, the measure, sponsored by Republican Rep. Bruce Griffey, would require each county commissioner to include the following “yes” or “no” questions on midterm election ballots:

  • Should the State of Tennessee legalize medical marijuana?
  • Should the State of Tennessee decriminalize possession of less than one ounce (1 oz.) of marijuana?
  • Should the State of Tennessee legalize and regulate commercial sales of recreational-use marijuana?

A majority of voters answering in the affirmative to any or all of the questions would neither change state law nor require lawmakers to take any additional action. They are designed to serve as a directive for lawmakers to craft public policy.

Tennessee remains one of just five states that has not approved cannabis for any use, along with South Carolina, Kansas, Wyoming, and Idaho. In March, the state House Health Committee approved a measure to allow adult cancer patients access to medical cannabis oil, but that bill has not been voted on by the either full chamber of the General Assembly.

A 2018 Middle Tennessee State University poll found 81% of Tennessee voters supported cannabis legalization to some degree, with 44% backing medical cannabis legalization and 37% supporting legalization for adult use.

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Missouri Gov. Vetoes Bill to Let Cannabis Companies Deduct Business Expenses on State Taxes

7/12/2021

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Missouri Gov. Mike Parson (R) on Friday vetoed a measure that would have, in part, allowed the state’s medical cannabis companies to deduct normal business expenses on their taxes, the Missouri Independent reports.

In his veto message, the governor didn’t mention the medical cannabis tax provisions, rather he said the veto was due to a section that would have provided tax relief to businesses impacted by city-wide or county-wide public health restrictions which have created “significant unintended consequences that could greatly harm localities.”

The bill, which passed the Legislature in May, would have allowed the state’s medical cannabis companies to deduct normal business expenses on state tax returns. Such deductions are not allowed on federal returns due to federal cannabis prohibition.

Andrew Mullins, executive director of MoCannTrade, told the Independent that the organization is “disappointed by the veto” but that members “remain encouraged by the overwhelming bipartisan support for a measure of basic tax fairness that received near-unanimous votes in both the state House and Senate.”

“As our state’s newest industry continues to create thousands of new jobs and generate tens of millions in new spending each month, we look forward to again passing this policy change and seeing it signed into law.”—Mullins to the Independent

The law was the first in the nation to approve such reforms despite Missouri only legalizing cannabis in 2018.

Section 280E of the federal tax code does not allow “any trade or business…that consists of trafficking controlled substances” to deduct normal business expenses, whether or not their business is approved by the state.

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South Dakota Preparing New Cannabis Initiatives In Case Its 2020 Reforms Are Overruled

7/12/2021

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South Dakotans for Better Marijuana Laws (SDBML) have submitted prospective adult-use cannabis initiatives to a policy research team, according to a DGlobe report. The group was behind the November 2020 constitutional amendment that legalized adult-use cannabis in the state, but the reforms were struck down by a circuit court judge on the grounds the question covered more than one issue.

SDBML indicated they are ready to file a new ballot measure if the Supreme Court upholds the lower court decision. They submitted two constitutional amendments, which need 34,000 signatures by November, and two proposed laws, which require 17,000 signatures to make it on the 2022 ballot. The differences between the prospective initiatives lie in taxation and cultivation schemes, with one proposal including home cultivation, the report says.

Despite the options, SDBML says they will only bring one initiative to voters, but Matthew Schweich, the deputy director of the Marijuana Policy Project, said they want to keep their “options open.”

“We’re not exerting political pressure (on the Supreme Court), we’re just starting the clock.” — Schweich via Forum News Service

Melissa Mentele, executive director of New Approach South Dakota, the group behind the state’s successful 2020 medical cannabis initiative agreed, telling DGlobe that “if Amendment A is repealed, then we need to be prepared to put legalization on the ballot again.”

Although South Dakota has one of the country’s oldest initiative processes, the two cannabis initiatives that passed last year have both faced issues becoming law. The adult-use proposal was challenged by two law enforcement officers at the behest of Republican Gov. Kristi Noem and was ultimately struck down by the Circuit Court, and now awaits a judgment by the state Supreme Court.

The medical cannabis initiative, which had to make its way through the South Dakota legislature and faced delays and challenges throughout the legislative process, is now moving forward. In an about-face, Noem has embraced the state’s medical cannabis law and is promoting the system in a new PSA.

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Some D.C. Dispensaries Face Flower Shortages Due to Grower Supply Chain Competition

7/12/2021

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This article was written by Gaspard Le Dem and originally published by Outlaw Report.

Every week, Norbert Pickett orders cannabis from each of D.C.’s eight cultivators to restock the shelves of his small medical dispensary, Cannabliss, located on the East side of the Anacostia River in Deanwood.

With the help of his wife and business partner, Collette Leonard, he selects various flower strains, oils, edibles, and other pot products, carefully calculating the amounts he’ll need for each item.

To keep costs down, Pickett tries to order cannabis flower—which makes up 90% of his sales—in bulk, by the pound or the half-pound. But he’s usually only able to get a few grams of the strains he wants.

Since opening his shop two years ago, Pickett says he regularly runs into issues with cultivators that won’t supply him the amounts he needs to meet a growing demand from patients.

“It’s been a struggle, we would order pounds of strains and we would get grams, sometimes nine grams, sometimes 14 grams,” Pickett said. “Sometimes we wouldn’t even get what we ordered at all.”

It’s an issue common to many of D.C.’s standalone dispensaries, shops that aren’t owned—whether fully, or in part—by a cultivation center. Though Pickett has a license to sell medical cannabis, he’s not authorized to grow, and depends on cultivation centers to stock up. But many of his suppliers are also direct competitors: a majority of D.C. cultivators are vertically integrated, meaning they grow cannabis and sell it, too.

That, he says, puts his shop at an unfair disadvantage. Pickett says vertically integrated cultivators restrict his supply, reserving most of their cannabis flower for affiliated dispensaries who get better prices and exclusive deals on in-demand strains.

“Obviously, when you’re vertically integrated in the District you’re able to supply your own dispensaries before you sell to the other ones that aren’t yours,” he said.

Cannabliss has seen steady growth since it opened in 2019, according to Pickett. The dispensary, run from the old Dave Brown Liquors building on Sheriff Road, employs 15 employees and two contractors. Last year, they became the first dispensary employees to unionize. Cannabliss was also the first medical dispensary to open in Ward 7, and has grown a loyal base of customers as a shop that prides itself on being 100% Black-owned and operated in a historically Black neighborhood.

Still, Pickett says recurring supply issues and product shortages have taken a toll on his bottom line. These days, he’s only able to purchase three to five pounds of cannabis flower each week. Ideally, he says he would buy twice as much. Popular strains go out of stock on a weekly basis, forcing disappointed customers to buy elsewhere.

“We can lose about five grand in one day just by not having a certain strain,” he said. “It’s hampered my business. I feel like I’m operating with both of my hands cuffed behind my back and one foot ankled.”

Central to the problem is that D.C. simply doesn’t have enough cannabis flower to go around. The District has only eight active cultivation centers for a medical cannabis program that counted more than 9,000 registered patients as of January. Moreover, the customer base for D.C. dispensaries hugely expanded last year thanks to a new law allowing out-of-state cardholders to purchase cannabis in the District.

But until recently, D.C. cultivators were limited by a cap on the number of plants they could grow. That plant cap was recently lifted through emergency legislation, but the new law is only temporary for now. If cannabis were legalized at the federal level, dispensaries could get around the local shortage by purchasing weed from out-of-state suppliers, but crossing state boundaries with pot is still illegal under federal law.

Jen Brunenkant, owner and CEO of Herbal Alternatives, a standalone dispensary in D.C.’s Ward 2, told The Outlaw Report customers complain about the lack of variety at her store almost every day.

“We constantly get patients that will say, well why haven’t you ordered this strain, or that strain?” she said. “We’ll be like ‘well they haven’t offered it to us.”

She recently placed an order for 300 grams of a flower strain called OGP from Center Care, a vertically integrated grower in Ward 5, but told The Outlaw Report she only received 24 grams. Center Care, one of D.C.’s largest cannabis companies, is owned by Columbia Care, a company that operates more than a dozen dispensaries across the country.

“The cultivators that have either an official or an unofficial vertical integration certainly don’t offer the same variety or quantity to the non-affiliated dispensary,” says Brunenkant.

Supply issues started hindering Herbal Alternative’s growth last year after D.C.’s Alcoholic Beverage Regulation Administration (ABRA), which runs the District’s medical cannabis program, granted two new dispensary licenses.

“That really started to affect the supply,” said Brunenkant, who opened her shop in 2015.

Like Pickett, Brunenkant buys from all eight D.C. cultivators, a messy and unpredictable process that she says is frustrating. Many cultivators release new products much like a sneaker drop—with little notice and a short time frame to place orders.

These days, her most dependable suppliers are the few D.C. cultivators who aren’t vertically integrated and are willing to evenly split their product between shops.

“If it wasn’t for the unaffiliated cultivators we’d be in real trouble,” Brunenkant said.

Brunenkant wants D.C. to take steps to regulate the market’s limited cannabis supply, whether through legislative action by the council or new ABRA rules: “I think [ABRA] can require existing cultivators to divide the product more equitably,” she said.

In a statement, ABRA spokesperson Jared Powell told The Outlaw Report that the agency is looking into unfair distribution practices on D.C.’s cannabis market: “Claims of cultivation centers restricting access to products to select dispensaries is [sic] under investigation by ABRA’s enforcement team,” he said. “[ABRA is] committed to ensuring that the District’s medical cannabis program can readily meet patient demand and expanding access.”

He noted that existing dispensaries in D.C. were eligible to apply for two new cultivation licenses that came online this spring and that the total number of growing permits was recently increased by ABRA from 10 to 14 on an emergency basis.

In February, D.C. Mayor Muriel Bowser addressed the question of inequitable supply in legislation introduced in the D.C. Council. The “Medical Cannabis Amendment Act of 2021” would prohibit cultivation centers from charging lower prices to dispensaries that they have an ownership interest in. The bill is still under review.

Linda Mercado Greene, owner of Anacostia Organics, a dispensary in Ward 8, told Outlaw Report that she would be open to laws that regulate supply. However, she said cultivators shouldn’t be forced to distribute their products evenly between dispensaries.

In Greene’s opinion, the District’s weed supply simply hasn’t had the time to catch up with rising demand yet. She said the recent lifting of ABRA’s cap on plants should help level out supply shortages once new plants start producing flower, a process that usually takes around nine months.

Greene, who chairs the DC Cannabis Trade Organization, said she’s aware that some shops get exclusive deals on in-demand products: “It’s very easy to go on someone’s product list and see what they have,” she said.

But she said that’s all fair game in the business world.

“If you are a private business, and you’re growing and you are vertically integrated, absolutely, you would give your own business the majority of the product,” said Greene. “You gotta take care of home first, right?”

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Study: Cannabis Farms Use Less Water Than Previously Thought

7/09/2021

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A new study suggests that California’s outdoor cannabis farms may not use as much water as previously thought and significantly less than almonds—the state’s top agricultural commodity, according to a Times-Standard report outlining the research.

Van Butsic and Ted Grantham, co-authors of the study, co-directors of the Cannabis Research Center and adjunct fellows at the Public Policy Institute of California’s Water Policy Center, told the Times-Standard that their research “hasn’t found cannabis to be particularly thirsty relative to other crops.”

“Legal outdoor production uses about the same amount of water as a crop like tomatoes,” Bustic explained to the Times-Standard.

Natalynne DeLapp, executive director of the Humboldt County Growers Alliance, said the study results coincided with what the organization has seen on the ground, noting that “a single large almond farm in the Central Valley utilizes 33 times more water than all permitted Humboldt cannabis farms combined.”

“Another way to look at thirstiness is to consider how much output is produced by a single gallon of water. For other crops like tomatoes, lettuce or almonds, a gallon of water produces between a tenth of a cent to two cents of value in yield. For cannabis, a gallon of water produces nearly $7 worth of value. In that sense, cannabis is by far the most water-efficient agricultural product in California.”—DeLapp to the Times-Standard

The researchers do note that “more data is needed on cultivation practices to quantify water demands of cannabis farms, especially those that remain unpermitted.”

“Researchers should continue to explore the geographical, climatic, and farm-specific factors that influence water extraction and use to inform development of regulations that are environmentally protective, yet bolster participation in the regulated industry,” the researchers at the University of California Berkley Cannabis Research Center concluded.

Bustic said the researchers identified nearly 8,000 legal cannabis farms in California—both indoor and outdoor—compared to 15,000 unlicensed farms in Humboldt and Mendocino counties alone in 2018. The study authors note that illegal farms consume more water and are usually located in remote areas that support sensitive species, while legal farms rely more on groundwater wells to meet their demand.

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L.A. County Police Bust Unlicensed Cannabis Grow Worth Est. $1B

7/09/2021

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Los Angeles County, California authorities on Wednesday announced the largest cannabis bust in its history—373,000 plants worth an estimated $1 billion in street value, ABC News reports. The 10-day operation led to 131 arrests and more than 33,000 pounds of harvested cannabis; however, authorities said it represents less than half of the illegal grows in the Antelope Valley—205 of 500.

U.S. Rep. Mike Garcia (R) stressed that the law enforcement action was “not a war on legal cannabis businesses” in the state.

Sheriff Alex Villanueva said the illegal grows were run by cartels that threaten local residents, steal millions of gallons of water, poison streams and groundwater, and harm wildlife and plants with pesticides. He added that the illegal operations are detrimental to the state’s licensed cannabis operators. Villanueva noted that last year, his agency identified 150 illegal grows in the Valley.

“What we want to do is send a clear message to the cartels and anyone doing illegal operations in the High Desert, your days are over and we are coming for you.”—Villanueva to FOX LA

Villanueva said that last year the California agency seized over 1 ton of cannabis while this bust alone amounted to more than 16 tons. In addition to the arrests, police seized 65 vehicles—including two water trucks—rescued 180 animals, and confiscated thousands of dollars in cash along with several weapons.

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FBI Loosens Cannabis Policy for New Hires

7/09/2021

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The Federal Bureau of Investigation (FBI) has updated its hiring policy to not exclude potential candidates for using cannabis outside of a year, which is down from three years, according to Marijuana Moment report. Additionally, candidates will not be disqualified for using cannabis prior to their 18th birthday; instead, adjudicated personnel will use the “whole person” concept to judge a candidate’s agency worthiness.

The agency made no formal announcement of their policy change but hinted at it in a Tweet from its Chicago branch.

“#FBI is firmly committed to a drug-free society and workplace. Constant review of our hiring and drug policies ensures that we continue to attract the most qualified candidates to learn if recent changes to our marijuana policy affect you as a candidate…”—FBI Chicago branch via Twitter

The change comes a year after the FBI announced it was reviewing its policy related to hemp-derived CBD and seven years after former Director James Comey hinted that the agency was missing out on talent due to their restrictive cannabis policies.

“I have to hire a great workforce to compete with those cybercriminals,” he said at the time, “and some of those kids want to smoke weed on the way to the interview.”

Despite the changes, the FBI remains unfriendly to cannabis in the workplace, and drugs other than cannabis still have a ten-year abstinence requirement in the hiring process. They exclude candidates who are “currently using illegal drugs, misusing or abusing legal drugs or other substances for illicit purposes at the time of the application process.”

Moreover, the site notes that “the FBI is firmly committed to a drug-free society and workplace. The FBI balances the needs of the organization and the importance of keeping the public integrity necessary to accomplish its law enforcement and intelligence missions by hiring the most qualified candidates.”

The FBI is taking the lead on this issue, with agencies and branches of the military, such as the Navy, NASA, Air Force, Coast Guard, and DEA all clarifying their ban on CBD and THC cannabis products in recent years. According to Marijuana Moment, only the Department of Transportation, who said they would not test drivers for CBD, have loosened their cannabis policies, although President Joe Biden (D) has issued waivers for prior cannabis use to some staff.

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Oklahoma Senator Requests $4M in Federal Funds to Fight Illegal Grows

7/09/2021

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U.S. Sen. Jim Inhofe (R-OK) has requested $4 million in federal funds to combat illegal cannabis cultivation in the Sooner State, the Associated Press reports. The request was made by Luke Holland, Inhofe’s chief of staff, during an Oklahoma Sheriffs Association meeting.

The request asks for direct appropriation of the funds through the U.S. Justice Department to establish a unit to combat “transnational and national drug organizations” within the state Bureau of Narcotics and Dangerous Drugs. The agency would work with sheriffs to fight illegal cannabis operations in the state.

In April, the Oklahoma Bureau of Narcotics (OBN) seized cannabis grown illegally by one of the company’s licensed under the state’s medical cannabis law—one of the most liberal in the nation.

Following the bust, Mark Woodward, an OBN spokesperson, told OKC FOX that the agency had information showing the business was a front for a criminal organization “moving large quantities of marijuana on the black market under the guise” of the medical cannabis program.

State Senator Casey Murdoch (R) told OKC FOX that foreign nationals have been buying up land in the state for more than its worth, obtaining a medical cannabis cultivation license, and diverting the products, despite the medical cannabis law requiring 75% of cannabis businesses in the state be owned by someone who lives in the state. Murdoch is also the author of a bill that would require medical cannabis operators to disclose any foreign investments.

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White House Recommends Classifying Cannabis Retailers Alongside Smoke Shops

7/08/2021

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A White House committee is recommending the North American Industry Classification System (NAICS) update its classification of various portions of the cannabis industry, Marijuana Moment reports. The Economic Classification Policy Committee (ECPC)—which includes the Office of Management and Budget (OMB), the Census Bureau, the Bureau of Economic Analysis, and the Bureau of Labor Statistics—is proposing changes that would re-classify cannabis retail stores into a new category with tobacco, e-cigarette stores, and smoking shops.

The changes will allow economists to research cannabis commerce like other business categories, the report says.

Advocates for the updates feel that with the rapid growth of the cannabis industry is needs its own NAICS category. The Census Bureau, in their public comment submitted to the ECPC, agreed but the committee ultimately combined cannabis with other industries.

“Broadly, vape shops and marijuana shops are primarily engaged in retailing smokers’ supplies.  Given the production process commonalities and the continual market growth, the ECPC recommends creating a new industry, titled ‘Tobacco, Electronic Cigarette, and Other Smoking Supplies Stores.’” — The ECPC proposal

Additionally, the ECPC suggests cannabis, both high-THC and hemp crop wholesalers, should receive updated NAICS classifications. Under the proposal, CBD would be added to several categories and the committee recommends it be updated in the separate North American Product Classification System, according to the report. These changes have not gone into effect and may do little to illuminate cannabis economic data. However, the Census Bureau has taken its own steps to make cannabis economic data more available, including adding a cannabis tax and license fee question to its state economic reporting process, the report says.

NAICS is a collaboration between Mexico, Canada and the United States in an effort to standardize industries. “For these three countries, NAICS provides a consistent framework for the collection, tabulation, presentation, and analysis of industry statistics used by government policy analysts, by academics and researchers, by the business community, and by the public,” the agency said.

 

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Indiana Law Allows Low-THC Blood Levels in No-Fault Accidents

7/08/2021

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A new Indiana law that took effect July 1 allows drivers involved in no-fault motor vehicle crashes to have less than a nanogram of THC in their blood without being considered intoxicated by cannabis, WSBT 22 reports. Under previous state law, any amount of THC in a driver’s blood found following a crash would lead to a felony operating while impaired charge, even if the driver was not at fault.

Republican state Senator Mike Bohacek told WSBT that since cannabis is legal in Indiana border states—namely Illinois and Michigan—there should be protections for residents who may have consumed cannabis a week ago and get into a no-fault crash but still have THC in their blood despite not being under the influence.

“Even if the accident wasn’t their fault, that just seemed to not be proportional. It seemed to be heavy-handed and onerous and not really in the spirit of what we’re trying to do to stop intoxicated drivers. So this would provide a defense that as long as you’re not clearly intoxicated solely on the basis of the blood test, they could not charge you with that crime.”—Bohacek to WSBT 22

St. Joseph County Prosecutor Ken Cotter explained that if the driver is the cause of the crash and tests positive for any amount of THC, the driver is “still guilty of the crime.”

“You’re still guilty of causing that death. It’s only a defense if you’re not at fault for the crash and you show no signs of impairment and it’s only for marijuana,” he said in the report. “It’s not for other drugs and it’s not for alcohol.”

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New Jersey to Allow Medical Cannabis Telemedicine Recommendations

7/08/2021

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New Jersey Gov. Phil Murphy (D) has signed a law allowing medical cannabis recommendations to be made via telehealth services. The state first allowed telemedicine recommendations for medical cannabis patients in August 2020 amid the state’s emergency response to the coronavirus pandemic.

In a joint statement, the bill sponsors—Democratic Assemblywomen Pamela Lampitt and Joann Downey—said the law utilizes “today’s technology to help provide easier access to this beneficial medication on behalf of the people who need it the most.”

“Many medicinal marijuana patients suffer from conditions that limit mobility, making frequent visits to the doctor’s office a significant barrier to the medicine they need. The pain relief, muscle relaxation, nausea prevention and anxiety reduction of medical marijuana are too important to the people suffering from severe medical conditions to be hindered by in-person doctor visitation requirements.”—Lampitt and Downey in a press release

Republican state Sen. Declan O’Scanlan, who carried the measure in the chamber, said the reforms “enable qualified medical cannabis patients who are medically fragile and homebound to mitigate their suffering.”

“Those who are terminally ill, in hospice care, confined to long-term care facilities, developmentally disabled, or certified homebound could benefit from easier access to prescriptions,” he said in a press release.

The law—which the governor conditionally vetoed in April over concerns about the 270-day waiting period before enactment—permits health care practitioners to initially authorize any qualifying patient in New Jersey for the medical use of cannabis via telehealth, as long as the use of the telecare is consistent with the standards required for in-person assessment and treatment.

The version signed by Murphy removed the 270-day waiting period and the measure is effective immediately.

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Alabama Medical Examiner Warns Against Medical Cannabis ‘Pre-Approval’ Companies

7/08/2021

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The Alabama Board of Medical Examiners is warning residents about businesses claiming they can help get people pre-registered for a state-approved medical cannabis card by having a physician complete a patient evaluation; however, the board has not yet authorized any doctors in the state to do so.

William Perkins, the executive director of the Alabama Board of Medical Examiners, said that there is “no service” for patient pre-registration as the companies claim.

No physician has yet been authorized to evaluate patients for medical cannabis in Alabama, and no one in Alabama can be pre-registered for a medical cannabis card. Alabamians should be warned against engaging with any business that claims otherwise.”—Perkins, in a July 1 statement

Alabama lawmakers approved—and Republican Gov. Kay Ivey signed—the medical cannabis reforms in May but the program is a long way from accepting patients. A provision of the law also requires physicians to specify daily dosages and product type; however, federal law prohibits doctors from prescribing medical cannabis—but not recommending—and the requirement could reduce doctor participation if not addressed.

Under the law, doctors who wish to certify patients for the program will have to complete a four-hour continuing education course on medical cannabis and pass an exam demonstrating their expertise before final approval by the Board of Medical Examiners. The law requires that the board develop the criteria for physician certifications to use medical cannabis by December 1.

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How Social Equity Applicants Can Prepare for 280E & Become More Profitable

7/07/2021

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How social equity applicants can use tax and cash planning to prepare for 280e, improve cash flow, and become more profitable

It is extremely difficult to run a profitable cannabis company. In large part, this is because of 280E, which is a section in the Internal Revenue Tax Code that has been the thorn in the side of the cannabis industry since states legalized (as I’ll further explain below). But 280E alone is not the issue.

Federally legal hemp companies and non-plant touching companies struggle with profitability. The problem is the lack of short- and long-term financial planning.

So what is 280E? How do you create a financial plan when you do not have a finance background? What do these things have to do with each other?

In short, 280E is a section of the IRS tax code that says companies involved with the trade of federally scheduled I & II drugs cannot receive tax deductions and tax credits. If you are running a federally illegal company, you must pay taxes on total gross sales and not total profit. Check out more info on 280E and how to navigate it here

Lack of planning downfalls

If the country shuts down again, how long will the cash you have now last?

Do you know how much cash on hand you expect to have next month?

Do you have the budget to add a new employee? Will you still be profitable each month if you hire them?

Financial planning gives you clarity into these answers. Without it, you risk the following downfalls, which are experienced by many businesses and often lead to closed doors:

  • You are always in crisis mode because you are not prepared for when things go south, and unforeseen mishaps occur. Obstacles are inevitable.
  • You cannot reach a goal that your company hasn’t set.
  • Expenses are not covered timely, from payroll to taxes.
  • Adjusting to the market and external business environment becomes a significantly harder challenge.
  • It is harder to take advantage of free cash flow (the cash you have available after all operating and financing responsibilities are paid for).
  • You miss out on the ability to compare your performance against predetermined measurements to identify areas of strengths or areas that need improvement.

The solution is cash flow forecasting, setting taxes aside, and a proper accounting setup

A weekly or monthly cash flow forecast will drastically increase your ability to foresee negative cash balances before they happen, allowing you to make the necessary adjustments to prevent them. The idea of a weekly cash flow forecast sounds good, but there are important factors to consider in order to make a useful forecast.

The keys to a useful cash flow forecast are:

  • Accurate accounting records
  • Understanding of current market and business environment
  • Analysis of how long it takes for customers to pay invoices (less important for retail dispensaries)
  • Accurate recording and consideration of due dates for bills and expenses
  • Create weekly, monthly, and annual forecasts

Benefits of a weekly cash flow forecast

We’ve discussed how a cash flow can help prevent negative cash balances, but another major benefit of cash flow forecasting is using it to understand the growth potential for your company. Do you have excess cash each week? Are you making enough profits each month that will allow for another dispensary location, another employee, another grow facility?

A cash flow forecast can save your business and keep it afloat during downtimes. It can also help you thrive and grow. In cannabis, it can help you operate correctly and make sure taxes and all compliance-related expenses always taken care of. It is a key to cash management.

Strategize and set aside taxes daily, weekly at minimum

From setting aside the taxes from each sale to following a year-round strategy, taxes should be a part of cash flow planning. One method to assure taxes are thoughtfully planned for is to obtain a separate vault or bank account strictly for taxes. The goal is to quickly put it away and not touch it to avoid the temptation to spend and rob Peter to pay Paul. You get the idea.

A strategic tax plan can guide you as a roadmap throughout the year. It is best to regularly review your plan throughout the year because situations change. Consider these strategies to draw up ideas:

  • Consider setting up a non-cannabis entity
  • Consider setting up a cannabis IP entity
  • Deduct real estate depreciation & utility expenses
  • Understand what COGS are (& deduct them)

The foundation of it all begins with good accounting setup

Accounting is the foundation for cash flow planning as well as tax planning (280e included). A proper setup greatly improves the accuracy and organization of all these different types of information.

Bonus: Pricing and Cost

Improving prices and costs directly impact profitability and ultimately increase the cash in your pocket. Prices shouldn’t change too frequently but should be routinely compared to the cost of each item or service sold. I recommend performing a cost assessment for multiple reasons:

  • To understand the profit margins for each product or service
  • To keep costs within a specific range. If costs surpass this range, it should draw a red flag causing prices to be reviewed.
  • To create and stay under budget
  • To get rid of unnecessary and unproductive costs

Cash flow forecasting and planning can be the key to not only keeping your doors open but also reaching every goal you’ve imagined for your company.

Learn more ways to better manage your cash and create a foolproof plan at our blog here.

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Study: Psilocybin Helps Growth of Neural Connections Reduced by Depression

7/07/2021

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A new study from Yale University researchers found that a single dose of psilocybin given to mice “prompted an immediate and long-lasting increase in connections between neurons,” according to a Yale News report. The research was published on July 5th in the journal Neuron.

Chronic stress and depression are known to reduce the number of these neuronal connections, the authors said.

Alex Kwan, associate professor of psychiatry and of neuroscience and senior author of the paper, said “it was a real surprise to see such enduring changes from just one dose of psilocybin,” adding that the “new connections may be the structural changes the brain uses to store new experiences.”

“We not only saw a 10% increase in the number of neuronal connections, but also they were on average about 10% larger, so the connections were stronger as well.”—Kwan to Yale News

The team used a laser-scanning microscope to image dendritic spines—small protrusions on nerve cells—in high resolution. The researchers then tracked the spines for multiple days in living mice and found that the number of dendritic spines and their size increased within 24 hours of the administration of psilocybin and were still present a month later. The mice that were subjected to stress also showed behavioral improvements and increased neurotransmitter activity after being given the psychedelic compound.

“Overall, the results demonstrate that psilocybin-evoked synaptic rewiring in the cortex is fast and enduring,” the authors wrote in the summary, “potentially providing a structural trace for long-term integration of experiences and lasting beneficial actions.”

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Sha’Carri Richardson Left Off Relay Team Due to Cannabis Suspension; Will Not Compete in Olympics

7/07/2021

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Sha’Carri Richardson, the Olympic hopeful who was suspended from competition last week for 30 days following a positive test for cannabis, has been left off the 4X100-meter relay which will prevent her from competing in the Games at all.

In a Tuesday statement announcing the move, USA Track & Field (USATF) said it “fully agrees that the merit of the World Anti-Doping Agency rules related to THC should be reevaluated” but “it would be detrimental to the integrity of the U.S. Olympic Team Trials for Track & Field if USATF amended its policies following competition, only weeks before the Olympic Games.”

“All USATF athletes are equally aware of and must adhere to the current anti-doping code, and our credibility as the National Governing Body would be lost if rules were only enforced under certain circumstances. So while our heartfelt understanding lies with Sha’Carri, we must also maintain fairness for all of the athletes who attempted to realize their dreams by securing a place on the U.S. Olympic Track & Field Team.”—USATF in a statement

Richardson has accepted the one-month suspension but there was still a chance she could compete in the August 6 relay, which fell outside of the 30-day suspension. Richardson had said she used cannabis to deal with the “emotional panic” following her mother’s death.

President Joe Biden (D) said he was “really proud of the way she responded” to the setback but said, ultimately, the “rules are the rules.”

“Everybody knows what the rules are going in,” Biden told reporters last week in Michigan, according to a USA Today report. “Whether they should remain that way, whether that should remain the rule, is a different issue. Rules are rules.”

Rep. Alexandria Ocasio-Cortez (D) said the decision to suspend Richardson “lacks any scientific basis.”

“It’s rooted solely in the systemic racism that’s long driven anti-marijuana laws,” she tweeted last week.

USATF said the organization is “incredibly sympathetic toward Sha’Carri Richardson’s extenuating circumstances and strongly applaud her accountability and will offer her [their] continued support both on and off the track.”

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New York Tribe Files Civil Action Against Unlicensed Dispensaries

7/07/2021

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The Saint Regis Mohawk Tribe has filed civil actions in Tribal Court against seven businesses they claim opened illegally to sell cannabis to adults without permission from the tribe, WWTI reports. The legal action came just three days after the tribe became the first in the state to pass an ordinance to allow adult-use sales.

Tribal leaders had initially sent cease-and-desist orders to four retail shops and, once the ordinance passed, those businesses operating without a license from the tribe put themselves at risk of being shut down and unable to apply for a legal license in the future.

Tribal Chief Eric Thompson previously told North Country Public Radio that cannabis retailers must follow the tribal processes “to ensure the regulations are completed in a responsible manner with community input.” He added that cannabis products sold on tribal land would be “approved and tested” and “regulated in a socially responsible manner.”

All of the dispensaries subject to the civil action remained open were provided a “last chance” deadline of July 1 to close and comply. The legal actions seek motions for temporary, preliminary, and permanent injunctions to enforce the cease-and-desist orders and civil fines of $1,000 for each day they violate the orders.

The Tribal Council last week also issued an announcement reminding individuals and businesses of signage restrictions that promote illegal activities or those that are prohibited under the tribe’s jurisdiction, according to WTTI. Signs promoting cannabis dispensaries have become common on State Route 37—where four of the seven unlicensed dispensaries are operating.

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Alaska Gov. Appoints State Cannabis Education Manager to Marijuana Control Board

7/07/2021

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Alaska Gov. Mike Dunleavy (R) has appointed Eliza Muse, a state cannabis education program manager within the state Health Department, to the Marijuana Control Board’s Public Health seat, the Associated Press reports. Muse replaced longtime board member Loren Jones and the appointment is effective until the legislature looks at board appointments again, likely sometime next year, according to the AP.

Corey Allen Young, a spokesperson for the governor, said in an email to the AP that Muse “has been extensively involved in marijuana education and addressing public health challenges associated with legalization.”

As a new member, Muse described her role as “trying to ensure that we can find sort of a sweet spot as it pertains to ensuring that public health is preserved, safety is preserved, in this new space of a marijuana marketplace and just ensure that our regulations are always considerate of public health.” She added that she is not coming to the board “with any sort of preconceived notion or bias” and that, as an appointee she wants to use the most up to date research, which she says “to date has been lagging due to federal regulations and really lack of guidance at the federal level.” She says she wants to highlight “the fact that we do have limited science and research and data to make policy decisions off of.”

Lacy Wilcox, President of the Alaska Marijuana Industry Association, told the AP she does not know much about Muse, but “what I had hoped and what I continue to hope for is that the person in the public health seat comes to the table with some science and knowledge and an open mind so that they’re not just regurgitating anti-cannabis rhetoric.”

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Forti Goods: Fine Furniture for a Cannabis-Friendly Home

7/06/2021

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Cannabis meets fine furniture in Forti Goods, a woman-owned brand of luxury furniture with the ability to keep your cannabis on lock. Founder Sharon Kevil noted the need for quality furniture with a functional design after finding her own child up on a counter eating fruit candies that had been kept on a high shelf. This could have easily been cannabis-infused candy, and she began to search for a product that allowed her to lock her cannabis safely away from her daughter but was still integrated into their home design.

There were lockable stash boxes and some tabletop storage options, but she couldn’t find a product that would fit everything that she’d hoped to store in there. With her decade of experience in interior design and years working in product development with Kohl’s, Sharon created her own line of luxury furniture to fill this gap in the market. Each piece can lock and unlock via the mobile app, which also keeps track of each time the locked compartment has been accessed. Sharon also designed accessories like the cartridge block that holds vape carts upright while they’re being stored.

“I had a really solid foundation to be able to bring a product to life that just didn’t currently exist. I decided, who else would be better to do this than me,” explained founder and designer Sharon Kevil.

Kevil’s experience in the mainstream market provided her with valuable insight into furniture production and manufacturing, which helped her develop the principle foundations of the Forti Goods brand. For example, furniture is often manufactured in countries with cheap labor so retailers can make money while offering customers a “great deal,” but there is a hidden cost. While visiting factories, Sharon regularly saw things that felt unethical, like employees that lacked proper protective equipment in furniture finishing departments, where strong chemicals are being sprayed. Forti Goods maintains a brand philosophy focused on environmental sustainability and maintaining the health of the craftsmen who build each piece.

Each Forti Goods piece is made with Forest Stewardship Council (FSC) certified wood materials, which is considered the “gold standard” for responsibly harvested wood. The process creates a traceability system that certifies the wood used in manufacturing came from a forest management service. Ensuring that suppliers buy FSC certified wood ensures their knowledge that the area where their wood was harvested wasn’t clear cut and that the forests were replenished. Buying FSC certified can add between 20-25% material cost to each product, which is significant, but Sharon is adamant that it is the minimum requirement for the brand.

All of their pieces are manufactured with a water-based finish, reducing the number of chemicals in the process. This serves both the end-user and the people who are required to spray it by reducing the risk of health issues for workers. Eventually, Sharon aims to ensure they are using renewable energy in production beyond environmental sustainability and guarantee that every person involved in the furniture-making is earning a living wage and being treated decently.

“It felt very much like we as a consumer nation are taking advantage of poor people in other nations. After having a child I realized that this is not what I want, this is not how I want to leave the world for my kid,” Sharon said. “Fast furniture, fast fashion, fast food; all of it requires detriment to the planet and that just didn’t feel good to me.”

Forti Goods furniture is currently manufactured by three different US companies, all within a short plane ride or road trip from Sharon’s home. One Wisconsin manufacturer specializes in FSC core plywood with custom veneers. Another Wisconsin-based company has a very high-end furniture background specializing in solid woods and oil-based finishes that maintain the beauty of the raw wood. The last manufacturer is in Ohio and has a good mix of solid and panel products while also combining computerized cutting with time-honored traditional woodworking techniques. It took Sharon time to find these three factories, and now the strengths of each shop work cohesively to honor the Forti Goods principles of respecting the planet, the environment, and the workers involved in making the products.

Sharon designed each of Forti Goods’ pieces and is always designing new pieces for their line. The flagship line is currently available and intentionally serves various people taking price point, functionality, and home size into consideration. And while cannabis was the product that sparked the idea for safe locking furniture, the pieces can be used to keep prescription medications, money, and even sex toys under wraps from kids, roommates, and Airbnb guests.

Sharon’s experience in furniture design helped her see past the notion of using a lock and key mechanism for a number of reasons. First, a key can be found by a wily teen or intrusive roommate, and second, someone with mobility issues in their hands may have trouble using a small key to access their medications. Instead, the company developed an app that’s available in various formats in the Google Play Store, Apple Store, and via a web browser. The app can be used to lock the piece and, in the name of accessibility, the locking feature isn’t just a small button on the screen but a line that can be touched anywhere. The next phase of app development will feature facial recognition so that even if a child knows their parent’s passcode they won’t have access. Access can be granted to other household members to allow flexibility, but the app will also keep track of who opened the locked compartment and when. This feature can even be used in Airbnb rentals as a mini-bar for hosts that would like to offer cannabis or other accessories to their guests.

‘There have been lots of really interesting uses that we’ve heard from people since we started and the app really helps to allow that flexibility of different people using it at different stages in their lives,” said Kevil.

Later this year, we can expect to see up to six new pieces out from Forti Goods, including outdoor furniture for those living in climates like Arizona and Southern California. They are also working to launch new products at lower price points, but note that their sustainability model means prices will never compete with big box stores. The brand is also developing new concepts that aren’t specifically cannabis-focused but more about communal, roommate, and family living.

This refreshingly ethical and environmentally focused brand is a welcome and necessary addition to the realm of cannabis accessories, with pieces named after matriarchs of company members and mentors. Their focus is not on hiding your cannabis use but instead on keeping your products safe from small children and keeping track of who has access to them. Gone are the days of storing your pipes and flower in a makeup bag or hiding such products away in a safe in the garage with this luxurious, well-designed line of purpose-made furniture.

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Chicago’s Green Thumb Industries Acquires Virginia’s Dharma Pharmaceuticals

7/06/2021

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Chicago, Illinois-based Green Thumb Industries (GTI) last week acquired Dharma Industries—one of Virginia’s four medical cannabis processing companies. Dharma is the only cannabis producer in Southwest Virginia, according to the Bristol Herald Courier.

GTI CEO and Founder Ben Kovler said that the acquisition in “a limited-license market with a population of nearly 8.5 million people … is a major win” for the company’s shareholders. The firm trades on the Canadian Securities Exchanges under the “GTII” symbol.

The terms of the deal were not disclosed.

“Expanding into the first state to pass adult-use cannabis in the Southeastern U.S. is an important milestone for Green Thumb and we are excited for the future.”—Kovler in a press release

The deal increases GTI’s national presence to 13 states and 59 retail locations. The acquisition includes a production facility and dispensary in Abingdon with the opportunity to open five additional dispensaries in the Commonwealth.

Under Virginia’s adult-use cannabis law, existing medical cannabis operators will be able to obtain multiple recreational licenses by paying a $1 million fee to the Virginia Cannabis Equity Loan Fund, and the Virginia Cannabis Equity Reinvestment Fund, and if they submit plans for diversity, equity, and inclusion, according to the Herald Courier. GTI received approval for the deal from the Virginia Board of Pharmacy. The planned takeover was first announced in May.

Jennifer Dooley, GTI chief strategy officer, told the Herald Courier that Dharma’s previously announced plans for a dispensary in Salem are continuing.

Portions of Virginia’s adult-use cannabis law took effect on July 1, but, under the Legislature-approved law, sales are not expected to commence until January 2024.

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Connecticut Launches Cannabis Information Website

7/06/2021

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The administration of Connecticut Gov. Ned Lamont (D) on Monday launched a website intended to update residents with information about the state’s new adult-use cannabis laws. The governor said the site will “be an important resource for people who have questions about the new law or who might be interested in starting a new business in this market.”

“Passage of this new law was an important step forward in ending the failed war on drugs as adults over the age of 21 can now legally possess and consume cannabis in Connecticut. Now begins the important work of standing up a fair, well-regulated marketplace for businesses and consumers that prioritizes public health, safety, and social equity.”—Lamont in a press release  

Department of Consumer Protection Commissioner Michelle H. Seagull called the website “an important resource for consumers and interested business owners” which will provide up-to-date information on the licensing and application process, noting that state officials “are committed to a clear and transparent process.”

Portions of the state’s adult-use cannabis law took effect July 1—just nine days after Lamont signed the measure into law.

The website includes information on what parts of the law are currently in effect and the state’s medical cannabis program.

The equity, diversion, and inclusion section of the site notes that the War on Drugs “ravaged” the state’s communities.

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Missouri Medical Cannabis Sales Reach New Record in June

7/06/2021

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Missouri medical cannabis sales reached a new record in June at nearly $16.4 million, according to Missouri Department of Health and Senior Services data outlined by KHQA. In all, medical cannabis sales have topped $70 million in the eight months following the opening of the state’s first dispensary.

Missouri has so far licensed a total of 201 medical cannabis facilities, including 126 dispensaries, the report says. There are about 121,000 patients registered with the state.

Alan Zagier, a representative from the Missouri Medical Cannabis Trade Association, in an interview with KHQA, described the cannabis sector as “essentially Missouri’s newest twenty-first-century industry.”

“Now we’re really at the moment when rubber hits the road, and we’re really starting to see the results of all this hard work our members have put in. … The benefit extends to not just cannabis patients but also to the workforce. This is a real shot in the arm for lots of communities across the state. These are real, tangible jobs.”—Zagier to KHQA

Zaiger added that the number of dispensaries in Missouri is twice that of those in Illinois, despite the latter having a population more than double his home state.

According to state data, as of April, there were also 26,610 patients licensed to cultivate their own cannabis and 2,711 caregiver cultivators, who are allowed to grow cannabis for other patients.

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California Lawmakers Approve Cannabis Licensing Changes

7/05/2021

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California lawmakers delivered a budget bill to the governor’s desk on Friday that includes sweeping changes to the state’s cannabis licensing system, Marijuana Business Daily reports. Gov. Gavin Newsom (D) is expected to sign the bill into law.

The bill addresses some major issues for the cannabis industry including an extension to the state’s provisional licensing program, under which the majority of the state’s cannabis businesses have been operating. The provisional licenses can now be renewed through January 1, 2025.

The legislation also consolidates the state’s three cannabis regulatory agencies into a single entity: the Department of Cannabis Control. Additionally, the bill will allow cannabis businesses to trade free samples of their products with other companies.

But Amy Jenkins, a lobbyist for the California Cannabis Industry Association, told MJBizDaily that lawmakers need to go even further or else some cannabis companies may have to shut down next year. Specifically, the legislation doesn’t fully accommodate businesses with provisional licenses who are located in certain counties with their own cannabis regulatory requirements — those businesses are still operating in limbo with no guaranteed path toward relicensing in 2022 and beyond.

“We’ve won the battle but not the war. Can we get this fixed in a way that ensures that all of our provisional license holders have a path to annual licenses? That is uncertain.” — Jenkins, via MJBizDaily

Jenkins and other advocates believe the issue will be considered when state lawmakers return to Sacramento in August.

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