A lawsuit filed in Massachusetts is seeking to stop the state Department of Corrections (MDOC) from using a drug test manufactured by Sirchie Acquisition Company, LLC that attorneys for plaintiffs describe as faulty. The test is used on incoming mail to inmates and the lawsuit claims have led to a “slew” of false-positive results, with one MDOC employee estimating false-positive results as high as 80%.
Ellen Leonida, a partner at BraunHagey & Borden said they brought the lawsuit “to protect disempowered people incarcerated by the DOC from the unconscionable decision to use these tests in the face of overwhelming evidence of their inaccuracy.”
“We also intend to hold the drug companies liable for knowingly profiting from the misuse of these tests and the misery they are causing.”— Leonida in a statement
The lawsuit claims that the Sirchie test claims to detect synthetic cannabinoids but is fooled by innocuous chemicals found in most commercial paper. The complaint alleges the accuracy of the test to “witchcraft, phrenology or simply picking a number out of a hat.”
Once a test comes back positive, prisoners are given two choices: plead guilty and accept punishment or maintain innocence and be subjected to solitary confinement and loss of privileges for months while the agency completes a proper laboratory test. If the prisoner chooses to have a proper test conducted, they are subject to fines and expenses for paying for the test.
The lawsuit contends that the use of the test interferes with the fundamental right to counsel and due process as prisoners fear communication by mail, including with their court-appointed counsel, due to the false positivity rate of the tests.
In addition to the corrections department and Sirchie, the lawsuit names the drug company’s sales agent Premier Biotech, Inc as defendants. Nonprofit law firm Justice Catalyst Law is also representing the plaintiffs.
Julio Jones of the National Football League’s (NFL) Tennessee Titans is being sued in connection with money laundering and fraud, the Nashville Tennessean reports. Filed by California cannabis company Genetixs in Los Angeles Superior Court, the suit names Jones, former Atlanta Falcons teammate Roddy White, and his company SLW Holdings, as defendants.
Genetixs alleges the pair illegally harvested and sold over $3 million a month of cannabis on the unregulated market, the report says.
In the lawsuit, Jones and White are accused of working with John Van Beek, an ex-Genetixs manager who was fired in March 2021. Van Beek is accused of “breach of contract, the failure to report cannabis sales and not providing budgets, invoices, expenditures and other paperwork to the company,” the report reveals.
Furthermore, Van Beek is alleged to have turned off cameras in the facility and at one point prevented a new manager from entering Genetixs’ campus. Additionally, the group is alleged to have abandoned the facility to the landlord, looting 22 cannabis harvests and damaging machinery worth millions of dollars. As a result of the facility abandonment, the California Department of Cannabis Control is asking Genetixs to forfeit their license on the grounds they are not operating at their designated location, according to the Tennessean.
Attorney Rafe Emanuel, who represents Jones through SLW Holdings, told the Tennessean that “the vague allegations against SLW Holdings LLC and its members [White and Jones] are meritless” and that he looks forward to defending the “conspiracy theories” against his clients in court.
The Tennessean reports SLW Holdings filed a related restraining order against Genetixs in May, but the accusations have not been substantiated in court.
The former owner of a California cannabis retailer has been charged in federal court with bribery and failing to report millions of dollars in income to the Internal Revenue Service (IRS), KSBY reports. Helios Raphael Dayspring, the founder of the Natural Healing Center, which has shops in Grover Beach and Morro Bay, has agreed to plead guilty to the felony charges, pay $3.4 million in restitution to the IRS, and cooperate with an ongoing investigation.
That ongoing investigation is reportedly part of an ongoing public corruption inquiry in San Luis Obispo County, which has been public since March 2020 when the Federal Bureau of Investigation served a search warrant at the county Government Center.
In the plea agreement, Dayspring admitted to bribing County Supervisor Adam Hill to support his cannabis businesses. Dayspring paid hill a total of $32,000 in exchange for votes favoring legislation that permitted Dayspring’s cannabis farms to operate before getting final approval. Dayspring also admitted to attempting to bribe the former Grover Beach Mayor John Shoals in 2017 in exchange for two dispensary licenses but Shoals did not accept the bribe.
Dayspring also admitted to underreporting his personal income on his federal tax returns—by more than $3.4 million—for four years. Once Dayspring officially pleads guilty, he faces a maximum sentence of 13 years in federal custody.
Hill committed suicide in August 2020. Later that month, Dayspring stepped down as Natural Healing Center CEO “to devote his energy and attention to other personal avenues of opportunity.”
A Las Cruces, New Mexico business has reopened after receiving a cease-and-desist order from the state Cannabis Control Division (CCD) for “gifting” cannabis to customers, the Las Cruces Sun reports. Matt Madrid, the attorney for Speak Easy NM, which describes itself as an “organics company and gift shop,” said that his clients would end the practice following the state order.
“The practice commonly referred to as ‘gifting’ will not occur on our premises, however we are still able to assist the community with CBD products and merchandise.”— Madrid in a statement via the Sun
The state did not levy any penalties against Speak Easy.
The cease-and-desist order came following a July 20 investigation by the CCD, which determined the business was giving small amounts of cannabis to customers when making purchases. The business owners, Jason Estrada and Joseph Garza, defended the practice as legal under the state’s legalization law, portions of which took effect June 29. Under the law, adults 21-and-older can legally give cannabis to one another but where there is money involved in the transaction, it is deemed a sale and not a gift and, therefore, illegal, the report says.
State Regulation and Licensing Department Deputy Superintendent John Blair said that the state’s cannabis regulators “will not tolerate any individuals or businesses who violate the Cannabis Regulation Act or otherwise diminish the integrity of the adult-use cannabis industry in New Mexico.”
“All New Mexicans should be on notice that violations of the Cannabis Regulation Act will be met with swift, strong action from the state,” he said in a statement.
In a statement, Speak Easy said it was not their intent to circumvent the law, and apologized to their customers and the community “for any confusion” the situation caused.
The Community College of Denver (CCD) has launched a Cannabis Business degree program which it says “fills an education gap” in the field. The program—which the college says is the first-of-its-kind in the state—offers students an opportunity to earn an Associate of Applied Science.
Dr. Marielena DeSanctis, president of CCD, said that because of the college’s “strong ties to the local business community” the program equips “students with the skills they need to succeed in the fastest-growing industry in the U.S.”
“CCD is committed to not only creating meaningful career opportunities for our community, but we are also in the unique position to lead in diversifying the cannabis industry.”— DeSanctis in a press release
In addition to classroom work, the program offers internships and the opportunity to supplement coursework with practice experience. Upon completion of the A.A.S. program, students could pursue a Bachelor’s Degree in Cannabis Science and Operations, which the college plans to offer in the future.
Dr. John Frost, faculty and chair for CCD’s Cannabis program, said graduates “obtain industry-recognized credentials and build a record of work and hands-on experience.”
“This new innovative program will allow our students to think critically about cannabis legislation, growing, distributing/selling, and the social impact of the industry,”— Dr. John Frost in a statement.
The program is available both on-campus and online and scholarships are available to students who qualify.
In an interview with Forbes, billionaire Charles Koch called cannabis prohibition “counterproductive,” adding that it “ruins people’s lives, creates conflict in society and is anti-progress.”
Koch is best known for funding Republican politicians but last year launched the Cannabis Freedom Alliance, along with libertarian think-tank Reason Foundation, the Global Alliance for Cannabis Commerce, and the Weldon Project, a nonprofit that advocates for the release of cannabis prisoners. Through the organization, Koch plans to use $25 million of his $45 billion fortune—and his vast network—to influence cannabis legalization reforms by the end of the year, he said in the interview.
“By criminalizing [cannabis], it has huge negative manifestations, not only for the individuals who get trapped in that system, but also for society. We want a society that empowers people to realize their potential and contribute, but with these laws you block out millions of people.”— Koch in an interview with Forbes
Earlier this month federal Democratic lawmakers unveiled the Cannabis Administration and Opportunity Act—which would legalize cannabis and implement related criminal justice reforms; however, there are no Republicans signed on to sponsor the legislation and Koch could influence holdouts to sign on in support of the measure.
In 2015, Koch used his political capital to support the release of Weldon Angelos, a Utah man who had served 13 years of a 55-year sentence for selling $1,000 worth of cannabis before he was pardoned by then-President Donald Trump (R). Weldon is one of the founders of the Cannabis Freedom Alliance who noted in an interview last year that 10 to 12 Republicans are needed in order to pass federal legalization reforms.
“With Koch’s influence,” he said, “I think that’s likely a possibility.”
Advocates in Ohio have submitted summary language of a ballot initiative to legalize cannabis for adults to the state attorney general’s office—the first step toward enacting the reforms. The group will need to first collect more than 130,000 signatures and, if successful, the legislation will be sent to state lawmakers who will have four months to consider the bill. If they decline to pass the measure, the group can collect another 130,000 signatures to put the issue to voters on 2022 ballots.
The measure would allow use and possession by adults 21-and-older, allow cultivation of six plants per person and 12 per household, and sales by licensed retailers taxed at 10%.
Coalition to Regulate Marijuana Like Alcohol Spokesman Tom Haren said the “proposal fixes a broken system while ensuring local control, keeping marijuana out of the hands of children, and benefiting everyone.”
“Ohioans want this. They see marijuana legalization as inevitable. They want our leaders to seize the opportunity and take control of our future. Marijuana legalization is an issue whose time has come in Ohio. Nineteen states have gone before Ohio and we crafted legislation based on the best practices learned by those that went before us.”— Haren in a press release
The plan earmarks 36% of cannabis tax-derived revenues to support social equity and jobs programs; 36% would go toward funding communities that host adult-use dispensaries; 25% for education and addiction treatment; and 3% to the Division of Cannabis Control to cover administrative costs related to the adult-use cannabis industry.
Brooklyn District Attorney Eric Gonzalez on Tuesday dismissed 3,578 cannabis cases—some dating back to the 1970s—that remained on the docket mostly due to open warrants. The move clears up nearly all of the New York City borough’s remaining cannabis cases.
“For too long, criminalization of marijuana has disproportionately impacted young people and communities of color whose members made up about 90% of those arrested. These arrests ruined the lives of thousands of people over the years, saddling many with criminal convictions that prevented them from pursuing opportunities in life. That was why, in Brooklyn, we stopped prosecuting possession cases in 2014 and went further in 2017, declining prosecution of nearly all smoking cases as well. A year later, we also moved to dismiss warrant cases.”— Gonzalez in a press release
It was his predecessor, the late Ken Thompson, that stopped prosecuting cannabis possession cases in Brooklyn in 2014. In 2017, Gonzalez, as the acting DA, took the policy further and declined to prosecute nearly all cannabis smoking cases as well.
“I hope that these actions will help strengthen community trust in the justice system and allow us to continue moving forward with more fairness and equity,” Gonzalez said.
Currently, only eight cases that include cannabis charges remain in Brooklyn Criminal Court and involve allegations of driving while impaired. In Supreme Court, cannabis charges that are included in more serious felony cases will be dismissed in the course of court proceedings and those charges will not be brought before any jury, the DA’s Office said in the release.
The action by Gonzalez follows similar moves by Queens DA Melinda Katz, Bronx DA Darcel Clark, and Westchester DA Miriam Rocah following the passage of the adult-use reforms by New York lawmakers in March.
Idaho officials are preparing to submit a plan to regulate hemp to the U.S. Department of Agriculture (USDA) by September 1, the Capital Press reports. The action comes after the Idaho Legislature passed an industrial hemp bill this session which must be submitted to Gov. Brad Little (R) and the Idaho State Patrol before being sent to the USDA.
If approved by the USDA and the legislature adopts new hemp program administrative rules in 2022, Idaho’s first hemp crop could go into the ground in Spring 2022, the report says.
Idaho State Department of Agriculture (ISDA) Deputy Director Chanel Tewalt is optimistic, saying the agency expects “a fairly quick turnaround time on the review by USDA.”
The deputy director said there will be a $100 application fee and $500 annual renewal fee for hemp farmers, with an additional $250 per lot fee for testing. Handler-processor licensees will have a $1,000 application fee and a $500 annual inspection charge. Background checks will be required for all license applicants.
“Inspection is required in the federal rule and will be in the state rule. There is a handling portion of the (draft) rule because the new Idaho law references handling. We need to ensure the product can get from the farm to a drying facility or grain facility. So we have accounted for that in the process.”— Tewalt via Capital Press
The inspections will verify paperwork and test cannabis for THC thresholds. Hemp that tests over the 0.3% THC level will have to be destroyed or remediated. ISDA held meetings in June to negotiate the new rules with stakeholders. About 40 people attended each meeting, with more handlers and processors in attendance than growers, according to the report.
Ask almost any cannabis cultivator in California’s Emerald Triangle about transitioning from the legacy cannabis industry to the legal and licensed industry, and the one word consistently used is, “difficult.” Many people assume that because cannabis is legal, licensing and launching a start-up is easy, but that’s not the case, especially in California. Many have left the state of California to launch cannabis businesses in states that make it “easier,” like 1st Lady of the West Coast, who relocated to Nevada for the opportunity to get her exclusive genetics in cannabis dispensaries.
Journey to the Emerald Triangle: Insight into Licensing
In a recent visit to California’s Emerald Triangle, I received behind-the-scenes insight to help paint the picture of what it takes to obtain, then sustain, a licensed cannabis farm/cultivation site in California. Emerald Triangle-raised Lelehnia Dubois, the founder of Humboldt Grace who arranged the visit and tour, shared her experience growing up in the legacy market, legality insight, and the burden it places on small farms/cultivations that have been in the cannabis industry since the medical-only days.
When asked about some of the most difficult challenges and hardships for legacy growers and operators in California to transition into the adult-use (we should be saying consumption) market, Lelehnia described it as, “recovering from the trauma the drug war created.”
“Imagine your whole adult life being told what you do is dirty, bad, and illegal,” she said. “Imagine if your whole life you had to hide who you were from the world. Imagine if you could never invest in yourself for fear of being discovered. That creates a lot of trauma.”
When asked about the hardships in obtaining a license, Lelehnia said, “Most people growing cannabis on 10,000 square feet back then (before legalization) were the capitalistic-minded farmers not following the California medical guidelines. [The policy] basically said, ‘Hey all you folks not following California law, now you get to go legal,’ and now all the folks that were following the law are illegal.”
Lelehnia was raised in the cannabis industry through its legacy days. When asked to describe her upbringing, she said:
“My mother relocated us to Trinity County in 1977, took a nursing position, and was also a midwife. By the time I was 13, she was known as Dr. Nik to many and had been a part of hundreds of births throughout the Trinity and Humboldt communities. Age 13 was the first time I witnessed a raid with military armed police officers. I started trimming at age nine to ten and by 19 hated the smell of cannabis because it reminded me of abuse, oppression, and fear. I had seen guns held to heads. I had been raped repeatedly, kidnapped, and had to hide away our lives. The smell of cannabis made me feel all of it. In 1999 everything changed and I realized it was the drug war that caused all my trauma. It was then I became an advocate.”
As an advocate lelehnia focuses on community but has had to participate in policy issues for her community. During my visit to the Emerald Triangle, she introduced multiple cultivators who are licensed, and grateful to be, but who described their journey as tough, essentially hurting them more than helping them.
There are many factors — Lelehnia talked about square footage regulations and the multiple agencies that regulate and inspect the industry.
“The current structure gives all the power to distribution,” she said. “The tax structure puts outdoor farmers in bankruptcy within the first year. In Humboldt, we made the grave mistake of starting permits at 10,000 sq ft. That forced people to go big or go home as well as totally disenfranchised the true family, small medical farmer — the 99-plant person following state law.”
Additionally, she said that multiple sets of rules and regulations have caused huge communication issues, “which puts more cost on the applicant.”
“As this is all new law and a new industry, so much is up to interpretation. One agency can interpret one way, even one clerk within an agency can interpret something totally different than another. The applicant ends up spending a lot of time and money having to prove what one person or agency said to another.”
According to Walter Wood of Sol Spirit Farms, there are four key issues facing legacy growers in the Emerald Triangle industry:
“Issue 1 — Barrier to entry into the market (BIPOC/poor)
“Issue 2 — Medical users have to pay a lot more
“Issue 3 — Encourages illegal market (which lowers tax revenue, since most cannabis is staying black market)
“Issue 4 — The taxes all stack. First cultivator tax by state, then cult tax by county, then tax when sold to retailers, then the retailer has to add state excise tax, and county and city tax, plus normal sales tax. In the end, we are paying tax on tax on tax on tax.
“The cultivation tax is paid before the sale of the product if you have your own brand,” Walter said. “We have paid $15k plus in taxes on unsold flower, a lot of which is likely to have to be destroyed soon, due to the ridiculous laws governing cannabis that has already been tested (and taxed) but not sold. “
Meanwhile, Sam De La Paz from RizeWize Growth Agency lambasted the recent California Trailer Bill (a state budget bill).
“It has really been a legislative shit-show affecting licensing and many entities currently in operation, and many more wanting (needing) to enter the legal market,” he said. “This bill is about to cause further barriers to entry here in California. It effectively closes the door on small business, legacy operators, and many social equity applicants!”
Final Thoughts: Possible Solutions & Strategies to Lessen the Burden
There is a passion all over the Emerald Triangle, like the passion that exudes from Sequoyah Hudson of 8 Mile Family Farms and True Humboldt, who works tirelessly to promote the submission of positions letters from farmers so their voices can be heard on the issue of cannabis tax reform.
According to Sam De La Paz, “There are many bills being introduced, so many people don’t even realize it, all in an effort to protect legacy businesses and small businesses, together! We have to either be active in advocacy and policy formation, or thoroughly look into organizations, such as the Origins Council, that are active.”
Genine Coleman, founder of the Origins Council, said “This year Origins Council completed a comprehensive legal and situational analysis to identify the root cause of the serious challenges facing the state’s cannabis licensing system. The problems come down to the state licensing framework in relation to CEQA – the California Environmental Quality Act.
“Essentially, the state licensing framework takes an anomalous approach to CEQA and local land use regulation, resulting in exponential barriers to entry for modestly resourced small farmers, and the overwhelming of rural jurisdictional agencies working to satisfy the state’s environmental review and local permitting requirements for state licensing.
“Our analysis led us to develop a comprehensive set of policy recommendations to address these issues. This work, the OC CEQA Report, can be found on our website.”
Colombia’s President Ivan Duque last week signed a decree lifting the export ban on dried cannabis flower from the South American country, Reuters reports. The decree expands the sale of medical cannabis products and streamlines some regulations, the report says.
The move is seen as an important step in the country’s ongoing cannabis industry development where, despite being a leader in the global cannabis market, investors say the export process has been difficult.
While signing the decree, Duque said the Latin American cannabis market could be worth $6 billion.
“This means Colombia can enter to play a big role in the international market,” adding the order will help Colombia expand into food drinks, cosmetics, and other markets, Reuters reports.
Juan Diego Alvarez, vice president of regulatory issues for cannabis producer Khiron, told Reuters that, “lifting the prohibition on exporting the dry flower will start a regulatory process which we hope will be performed in great detail, to the highest international standards.”
Colombia legalized the export of medical cannabis in 2019 and has since become a leader in exporting seeds, plants, cannabis oils, creams, and extracts for medical use. Reuters reports that in other countries with more developed medical cannabis markets—like the United States, United Kingdom, and Germany—dried cannabis flower makes up 50% of the market.
On their website, Colombian cannabis industry association Asocolcanna wrote that “it’s crucial for Colombia to achieve its potential at a time when the global cannabis industry is being refined.” The organization urged the country to capitalize on its “competitive advantages,” Reuters notes.
Trulieve GA Inc. and Biomedical Sciences LLC were awarded the two Class 1 licenses to produce low-THC medical cannabis oil for Georgia’s medical cannabis program, while FFD GA Holdings, TheraTrue Georgia, Natures GA, and Treevana Remedy were tabbed for the Class 2 licenses, Capitol Beat News Service reports.
The Class 1 licenses allow licensees to grow cannabis up to 100,000 square feet of growing space, while Class 2 licensees are allowed to cultivate in up to 50,000 square feet. The licenses were created under a 2019 law despite the state legalizing medical cannabis oil containing up to 5% THC for patient use in 2015.
Trulieve is the largest cannabis company in Florida and CEO Kim Rivers said the company feels “well-positioned to approach the Georgia market with the same commitment to quality products, patient access, and positive customer experience” as in the firm’s home state.
The oil will be sold at licensed dispensaries or specially licensed pharmacies to patients with one or a combination of 17 medical conditions.
Danielle Benson, vice-chair of the Georgia Access to Medical Cannabis Commission—which reviewed the industry applications and chose the winners—said the announcement “is an indication that help is on the way for Georgians.”
“Because of the dedication and hard work of the commission, we have been able to stay focused on getting the work done while always keeping patients’ needs as a top priority.”— Benson via the Capitol Beat News Service
The law allowed 70 companies to apply. The commission has estimated that it will take six to eight months for the companies to get operational and make the oil available to the state’s registered patients.
Under current law, Georgians enrolled in the medical cannabis program are allowed to possess low-THC oil but there is currently no state-approved mechanism for obtaining the products, forcing most patients to run afoul of federal law by crossing state lines with the oils.
Westchester, New York District Attorney Miriam E. Rocah said on Monday that all courts have granted her petition to dismiss all cases involving felony or misdemeanor charges of cannabis possession or sale.
The move includes 184 cases in total and local prosecutors will continue to identify standalone cannabis charges that would no longer be prosecutable, recall any warrants, and dismiss the charges.
“Dismissing all marijuana cases, including underlying bench warrants, has been a priority of mine, and the legislature’s repeal of Article 221 was long overdue. The decriminalization of marijuana possession is critical given the discriminatory way marijuana laws have been used to incarcerate people of color. While Black and white Americans used marijuana at similar rates, people of color are much more likely to be arrested than white Americans for marijuana possession. Our office is committed to reducing this disparity and the dismissal of these cases is an important step.” — Rocah in a press release
Other prosecutors in the state have also taken the step to expunge and dismiss cannabis charges that are now legal. Last month, Bronx, New York DA Darcel Clark dismissed more than 6,000 cases where the primary charge was cannabis possession or sale. Clark’s action included both past and pending cases.
Queens DA Melinda Katz also last month asked the New York City borough’s criminal court to dismiss and seal more than 3,200 low-level cannabis possession cases, including 894 active cases with defendants currently awaiting arraignment and 2,361 cases for which summons were issued and have outstanding warrants.
The Roanoke, Virginia Board of Commissioners has voted unanimously to prohibit cannabis use—both adult-use and medical use—from public housing managed by the city’s Redevelopment and Housing Authority, WFXR reports. Current tenants will have to sign a lease addendum acknowledging the cannabis ban or face eviction if they refuse to sign it.
The policy—which takes effect 30 days following the vote—comes less than a month after portions of the state’s Legislature-approved cannabis law took effect. Individual violations will be treated on an individual basis, the report says. The new rules ban cannabis consumption and possession, which are both legal in Virginia as of July 1.
Mark Loftis, a commercial litigation attorney, told WFXR that there “is a process to determine whether [a] violation is of sufficient seriousness to warrant an eviction” and the new policy is “subject to that same grievance procedure.”
A memo has already been sent to tenants warning them that the board was considering the new policy and a second memo detailing the newly-approved policy will also be provided.
The cannabis law also prompted some colleges in the state to update their code of conduct to ban cannabis use and possession on campus. In June, prior to the law taking effect, Virginia Tech officially banned cannabis use and possession over concerns not making the official change would put the university at risk of violating the Drug-Free Schools and Communities Act, which could put their federal funding at risk. Off-campus cannabis use and possession is not included in the directive, so students 21-and-older who use or possess cannabis off school property would not be in violation of the new rules.
Legal cannabis sales are soaring, with U.S. revenue projected to surpass $28 billion in 2022, a whopping 60 percent increase over 2020 reported figures. But when an industry is on the rise, an influx of questionable people and businesses inevitably follow, resulting in a steady stream of opportunists looking to make a quick buck off hard-working—yet inexperienced—business owners. Here are some things you can do to protect your company from scamsters who come bearing all sorts of promises:
Avoid workaround solutions for credit card payments
If someone offers you a workaround solution to accept credit cards, turn it down immediately. No matter what anyone tells you, none of the major credit card companies allow cannabis transactions across their rails. Everyone understands that customers like the convenience of paying with credit, but teaming up with a vendor that breaks the card company bylaws just so you can please your clientele is not a road you want to take. Earlier this year two consultants for Eaze Technologies were caught scheming to trick banks into processing more than $100 million in credit card payments. Then they were sent to prison. Prison. And they are far from the only ones of their kind. There are many criminals out there, so be wary, and don’t look the other way or “forget” to ask questions when something doesn’t seem right.
Read your merchant agreement
Dishonest types bet that you won’t read the fine print. So read it! For example, some of the same payment processors who peddle sketchy workaround solutions for credit cards will bury deep in their merchant agreements a note stating that their policy is to hold a percentage of your funds for a certain amount of time. They will say it’s to make sure you’re good on your payments, but that waiting period might cause you problems if an unexpected expense comes your way and you can’t access your money to cover it. And what if your processor gets caught breaking the law and goes out of business? If that happens, they are never going to give that money back to you. Case in point: Linx Card was recently shut down, and many of its merchant customers with funds in reserve were simply out of luck without any recourse whatsoever.
Some crooked processors that get shut down resurface under a different name. This can also cause you headaches, as working with operators that repeatedly disappear, or bouncing around between different processors, is disruptive to your operations. And interruptions have a tangible cost. In our experience at Dama, retailers that don’t take some form of electronic payment see an immediate drop in sales by 25-30 percent. You do not want that to happen to you.
Don’t hide from the banking system
If you open a bank account—or let someone open an account for you, as many shifty actors in the industry will offer to do—but don’t indicate that you’re in cannabis, inevitably the bank is going to find out and shut down your account. No matter how hard you try to conceal the nature of your business, sooner or later something is going to raise a red flag, whether it’s a check from a suspiciously named company or too many cash deposits. And if you open a new account after yours gets closed, which is what will most likely happen, that account will get shut down too. This cycle will continue until you are eventually blackballed, which will affect not just your business but your personal banking situation—and that can have serious implications for your life outside of work. It’s just not worth it, so don’t do it.
Staying legal = staying safe
Every cannabis business wants to make money, but it’s important to run your operations legally and transparently, no matter how tempting the alternatives may be. You’ve worked hard to get where you are, so don’t throw it all away by getting caught up with cheaters who are only out for themselves. If something looks too good to be true, it usually is. And when you deal with cheaters, eventually they will cheat you too.
Adult-use cannabis sales in Maine set a new record in June reaching $6,470,936, besting the previous record of $5.3 million set in May, according to Office of Marijuana Policy (OMP) figures outlined by WMTW. Since sales commenced in the state last October, OMP has reported more than $29 million in adult-use purchases.
Flower sales account for more than half of the $6.4 million of the record-setting sales, comprising $3,830,664, according to OMP data. Concentrates accounted for $1,453,364 of adult-use sales last month, with infused product sales—including edibles, drinks, and topicals—reaching $1,186,935. It is the first time the infused product category has surpassed $1 million in a month of sales.
The state has set successive monthly sales records since the launch of adult-use sales in October 2020—almost four years after the reforms were approved by voters. No municipality in Maine has completely opted out of the adult-use market, with some allowing only retail sales, cultivation, manufacturing, testing, or a combination.
From January through November last year, medical cannabis sales in Maine surpassed $221.8 million making it the state’s most lucrative crop; outpacing potatoes, milk, hay, and wild blueberries.
Maine has taken in about $2.9 million in sales taxes from adult-use sales since they commenced. There are currently 42 active licenses for dispensaries.
Advocates in Arkansas are gathering signatures to put an adult-use legalization question to voters during the 2022 midterm elections, 40/29 News reports. The campaign by Arkansas True Grass is seeking to codify the reforms in the state constitution.
The proposal would allow cannabis use and possession by adults 21-and-older, allow sales through licensed retailers, allow for expungement of all cannabis crimes that would be legal under the amendment, and adults would be allowed to cultivate up to 12 plants in their homes.
The industry would be regulated by the state Agriculture Department.
“While Arkansas does have a great medical marijuana program, it does have shortcomings. It doesn’t allow for the patients to grow and the medicine itself is very expensive.” — Jesse Rapheal, a representative for Arkansas True Grass, via 40/29 News
The deadline to get the initiative on next year’s ballots is July 2022.
Medical cannabis sales in the state commenced in mid-2019 and surpassed $300 million last May—an average of $885,000 per day. In Arkansas, there are 32 dispensaries serving the state’s 76,553 active medical cannabis patients. The number of patients represents a 9,915 patient increase from April. Ultimately, the state will allow 33 dispensaries total.
A separate group—Arkansas for Cannabis Reform—had attempted to put the issue to voters during last year’s election; however, Melissa Fults, the organization’s executive director, told Cannabis Wire that the coronavirus pandemic “killed” the campaign’s ability to collect signatures.
The Washington State Liquor and Cannabis Board (WSLCB) has issued an interpretive statement regarding the conversion of hemp-derived CBD into delta-9 THC by licensed adult-use cannabis processors, according to the Cannabis Observer.
The statement, which was drafted by WSLCB staff in consultation with council from the Washington State Attorney General’s office, hinges on the safe harbor doctrine, the legal term describing the practice of allowing for the production and distribution of a federally prohibited controlled substance (cannabis). The statement says under state law only licensed cannabis producers, or growers, are granted safe harbor for creating Delta-9 THC, not cannabis processors.
Specifically, the new interpretive statement says, “producer and researcher licenses allow for the production of ‘marijuana’ products exceeding 0.3 percent THC concentration.”
“The statutes do not authorize a licensed processor to source hemp-based product, such as legal CBD, and convert it to delta-9 THC, regardless of the method of production, nor are they licensed to process hemp into marijuana concentrate,” the agency said in the statement. “As ‘conversion’ activity is not an identified privilege, it would not fall under the safe harbor protections.”
Justin Nordhorn, director of policy and external affairs at the WSLCB, confirmed that processors are “not afforded safe harbor for the activities of creating delta-9-THC.”
“Only licensed producers may grow cannabis for that purpose. Processors are allowed to purchase Delta-9-THC from a licensed producer, but not create their own.” – Justin Nordhorn via Cannabis Observer
The statement was made in response to a June 16 meeting of the Special Board Caucus at which Board Member Russ Hauge raised concerns that licensed processors were synthesizing delta-9 THC from hemp-derived CBD.
Going forward, the WSLCB said they will use an education-first approach but the agency’s Director of Enforcement, Chandra Brady, said staff “can use administrative holds, warnings, notice to correct” for licensees who do not “get on the path to compliance.”
Over the past several months, in an effort to address the emerging delta-8 and hemp-derived synthesized delta-9 phenomenon, the WSLCB has held two deliberative dialogs on cannabinoid chemistry and started a THC rule-making process, according to the report.
The Clarendon Hotel and Spa in Phoenix, Arizona is dedicating a wing of its hotel for cannabis consuming guests and billing itself as the state’s first “cannabis-friendly hotel,” 3 TV/CBS 5 reports. Cannabis-friendly rooms each contain a ‘scrubber,’ which recirculates air, and between guests, a more powerful cleaner is brought in for a deeper clean.
Tobacco smoking remains prohibited.
“We are a cannabis-friendly hotel and have a cannabis-friendly event company that is elevating and educating the community about cannabis.”— Daron Brotherton, Clarendon Hotel and Spa VP of Operations, via 3TV/CBS 5
The hotel is also hosting a six-course dinner with cannabis-infused cuisine tonight—the hotel’s first such event. Chef Derek Upton, known as the Arizona Cannabis Chef, is also available to provide in-room cannabis-infused dinners for hotel guests. The hotel also offers car service for rides to and from a dispensary and pipe and bong rentals.
In Arizona, there are three listings on BudandBreakfast.com—a site that helps tourists to book cannabis-friendly accommodations. The Clarendon Hotel and Spa is listed alongside Wow Arizona, based in Tucson which bills itself as a “cannabis-friendly environment in a nature preserve” that provides cannabis; and the BTC Lofts, which is located in Bisbee.
Arizona was the quickest state to allow legalized sales following voter approval. The reforms passed during the 2020 general election and sales commenced about two months later.
The Connecticut Department of Consumer Protection (DCP) is being accused of shutting down a cannabis information website over its use of cannabis strain names, the Hartford Courant reports. DCP Spokeswoman Kaitlyn Krasselt told the Courant that the owners of Terp Street had agreed to remove the so-called “street names” for cannabis from the website after being contacted by the agency but then decided to shut down the site instead.
DCP does not allow the use of standard strain names for medical cannabis products—such as “Fruity Pebbles,” “Wedding Cake,” and “Do-si-dos”—because officials cannot verify the strain purchased outside of the regulated market is the same as that purchased at licensed dispensaries.
“Additionally many of the names are inappropriate for medical products and in several cases would appeal to children or inappropriately encourage recreational use of medical products. If they’re not getting adequate information about what’s prescribed they should definitely let us know that. It’s a shame that they feel this website is the only place they’re getting their information.” — Krassalt to the Courant
Earlier this month, the state launched its own cannabis information website which includes information on what parts of the state’s adult-use law are currently in effect and on the state’s medical cannabis program.
The shutdown of the site has led to criticism of DCP on social media, including claims that dispensary managers notified the agency about the site.
Carl Tirella, general manager in Connecticut of Acreage Holdings—the parent company of the dispensaries accused of notifying state officials—indicated that employees from Terp Street contacted the company’s dispensaries two years ago asking them to share information about their products. In a statement to the Courant, he neither confirmed nor denied whether managers at the dispensaries informed the DCP.
“We appreciate those in Connecticut who advocate for cannabis education as we ourselves are strong advocates for cannabis accessibility, affordability, and education,” he said in the statement to the Courant. “We believe—and it is always our intent—in providing as much medicinal cannabis information as possible with patients in Connecticut.”
Cannabis industry consultant and lobbyist Jackie McGowan has launched her bid to replace Democratic Gov. Gavin Newsom in the state’s recall election in September, the Napa Valley Register reports. McGowan, a Democrat, is one of 46 candidates that will appear on the ballot.
In an interview with the Register, McGowan said, if elected, she would battle the cannabis industry’s existential crisis by cutting cannabis taxes for cultivators, distributors, and retailers and put pressure on cities that have opted out of adult-use sales.
“I’m highlighting cannabis because we (in the industry) have been pushed aside for so long. This isn’t a game; this is literally life or death right now. The cannabis industry is in crisis, and it cannot be ignored any longer.”— McGowan to the Register
In the interview, the 46-year-old former stockbroker noted that by the time cannabis gets to the end consumer “it’s been taxed 10 or 15 times” depending on the jurisdiction. Her platform includes eliminating the cultivation tax on cannabis and lowering the excise taxes. She said she would also call on the federal government to allow cannabis to be exported to other states where it is legal and for all parts of the cannabis plant to be regulated fairly, be it THC-rich or hemp products.
While she did concede that it would be an uphill battle getting her pro-cannabis platform through the California Legislature, she said she would seek to implement as many of the reforms as possible through executive orders.
In the state’s 2003 recall election of Democratic Gov. Gray Davis, Republican Arnold Schwarzenegger beat out more than 130 candidates.
Police in Cork, Ireland have removed six cannabis plants that were placed outside of the City Hall by a pro-cannabis activist, the Irish Examiner reports. Martin Condon planted the specimens in front of City Hall with little signs reading “#BringAliciaHome”—a reference to Alicia Maher, a cannabis patient who moved to Spain after she was unable to get cannabis in Ireland to treat her chronic pain.
“It’s important that we’re down here doing this, highlighting the suffering caused by the prohibition of cannabis. Alicia Maher is a Cork girl who had to leave home because of lack of access to cannabis here. She’s living over in Alicante in exile, a medical cannabis refugee. … Why can’t Ireland, a European country, provide the same to our citizens as what’s provided to citizens in Spain?”— Condon in a video posted to his Facebook page, Martin’s World
Earlier this month, Condon twice planted cannabis by the Shandon Bridge in the city, with signs reading “#TalkToVera” to highlight the case of Vera Twomey and her daughter Ava. Ava has a license to receive the medical cannabis product Bedrocan from The Netherlands but it costs the family nearly €10,000 every three months—which was not reimbursed under Ireland’s national healthcare program until this week when Health Minister Stephen Donnelly announced the state would cover the costs for Twomey and 16 other families in Ireland.
However, Condon said despite the change, very few patients are allowed to access Ireland’s program.
“I’m going to continue to engage with this campaign of civil disobedience until patients have effective access to cannabis and this prohibition is ended,” he said in the report.
Police said they are analyzing the plants and the investigation is ongoing.
North Carolina’s medical cannabis bill has passed the Senate Finance Committee, the second committee on its way to a potential floor vote in the Senate, according to Port City Daily. Known as the North Carolina Compassionate Care Act, the legislation has two more committees to pass before making it to the Senate floor in the push to pass medical cannabis this year in the state.
Backed by powerful Rules Chairman Sen. Bill Rabon (R) and a bi-partisan cadre of Senators, the legislation heads next to the Senate Healthcare Committee, followed by the Rules Committee.
Championed by veterans groups, in addition to including qualifying conditions like cancer and HIV/AIDS, the bill includes Post-Traumatic Stress Disorder (PTSD) as a qualifying condition.
During a hearing, Rob Rens, a U.S. Marine Corps veteran testified that his “position on it has always been that we’re aware of the veteran suicide issue.”
“We know what it is, and we know that opiates, uppers and downers—what we call the combat cocktail—is not having the right effect that it should, and we need to seek out some alternatives.”— Rens, in his testimony, via Port City Daily
Rens says he has been meeting with mostly Republicans to assure them the legislation is not a slippery slope to adult-use cannabis.
Rabin and other sponsors have been pitching the bill as the most restrictive medical cannabis bill in the country. Under the legislation, licensees would be responsible for owning their facilities and participating in seed-to-sale tracking. Ten supplier licenses would be available and each licensee would be allowed four dispensaries, capping retail outlets at 40 statewide. A license would cost $50,000 with a $10,000 renewal fee. The state Department of Health and Human Services would get 10% of medical cannabis revenue under the proposal.
Phil Dixon, a University of North Carolina School of Government assistant professor described the bill as “narrow” and “makes the modest acknowledgment that there’s therapeutic value to the substance for certain conditions.”
He sees the patchwork of cannabis laws in North Carolina as a place for needed reform.
“There are several counties that are not pursuing low-level marijuana possession prosecutions anymore at all. In other places they’re still aggressively prosecuting them,” he said in the report. “That’s a hot mess, and long term, that’s an issue that needs to be dealt with.”
Oregon Gov. Kate Brown (D) on Monday signed a bill giving police more authority to crack down on illicit cannabis grows, limit the THC in hemp products, and allow for more product testing, KOBI-5 reports.
Steven Marks, executive director of the Oregon Liquor Control Commission (OLCC), said the bill makes the state Department of Agriculture “look a bit more like the OLCC,” allowing them to do background checks, increase staffing, and have more oversight of rurally produced products produced under the state’s hemp program.
“Hemp producers in some of the products that you were getting in mainstream grocers and retailers, the CBD products had too much THC in them so they could actually make you intoxicated … [The bill] now creates the crime or if you’re not in a state program or it’s not homegrown, it’s a class A misdemeanor to grow cannabis not in a state program so law enforcement can go check it out.”— Marks to KOBI-5
The legislation also sets up a task force for tracking how to monitor illegal grows and how cannabis will be regulated in the future.
Jackson County Sheriff Nathan Sickler said he hoped the bill will “help get some compliance and control on a lot of these grows that are not operating on the up and up.”
The bill, passed last month, also regulates hemp-derived cannabinoids such as Delta-8 THC.
