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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Apple Lifts Ban on Cannabis Apps in App Store

7/05/2021

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Apple will allow cannabis-related apps in its App Store, Marijuana Moment reports. Updated on June 7, the policy change includes restrictions that require cannabis delivery apps to be geo-restricted within legal cannabis boundaries, and applications must come from legal entities and not an individual.

The original policy read:

“Apps that encourage consumption of tobacco and vape products, illegal drugs, or excessive amounts of alcohol are not permitted on the App Store. Apps that encourage minors to consume any of these substances will be rejected. Facilitating the sale of controlled substances (except for licensed pharmacies), marijuana, or tobacco is not allowed.” — Excerpt, Apple’s previous App Store policy, via Marijuana Moment

But a change in the policy wording last month carved out specific allowances for “licensed pharmacies and licensed or otherwise legal cannabis dispensaries.”

Chris Vaughn, CEO of the California delivery service Emjay, believes Google, which updated its policy in 2019 to explicitly ban cannabis apps, will “follow quickly” on Apple’s lead, he told WeedWeek. He said Apple was likely nudged by the legal cannabis movement in general — five states have legalized cannabis in 2021 alone, including New York, and the nation’s largest employer in Amazon this year announced it would stop drug testing employees for cannabis and would engage with lawmakers to help progress a federal cannabis bill.

Facebook, which has been accused of “shadow banning” some not-for-profit cannabis organizations including even the Massachusetts Cannabis Control Commission — the state’s cannabis regulatory agency — has not yet moved to change its cannabis policies, according to the report.

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Olympic Hopeful Sha’Carri Richardson Suspended Following Positive Cannabis Test

7/02/2021

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Sha’Carri Richardson, an American sprinter, has been suspended from competition for 30 days after testing positive for cannabis following USA Track & Field trials in Oregon last month, the New York Times reports. The Tokyo Olympic Games will be held from July 23 to August 8 and the suspension will end on July 27, meaning the top U.S. runner will not be allowed to compete in the Olympic 100 this year although she will be eligible to compete in the women’s relays.

It’s unclear whether she will appeal the suspension, the report says. She has not commented on the discipline directly, only posting to Twitter “I am human.” If the ban is upheld, it would negate her trials performance.

Cannabis is included on the World Anti-Doping Agency (WADA) list of prohibited substances during in-competition periods, which runs from 11:59 pm on the day prior to competition through the conclusion. Athletes are allowed 150 nanograms of THC per milliliter of blood without causing a positive test. In 2017, WADA removed CBD from the prohibited substances list but added synthetic cannabinoids, such as “Spice.”

Positive tests for cannabis can lead to suspensions from one month to two years. The minimum ban is usually imposed if an athlete can prove the cannabis use was not related to performance and the person completes a substance abuse program, according to the Times.

Richardson is considered a favorite to win a gold medal at the Olympic Games following her 10.86 time in the 100 meters trials. The U.S. Olympic & Paralympic Committee must submit the names of competing athletes next week.

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Illinois’ First Social-Use Lounge Grand Opening Set for 7/10

7/02/2021

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Illinois’ first social-use cannabis lounge is set to open next week, the Southern Illinoisan reports. The Luna Lounge, in Sesser, will open its doors on July 10—or 7/10 —the unofficial cannabis holiday celebrating cannabis concentrates or oil.

The lounge can host 60 people at a time and owner Holly Roeder told the Southern that presale tickets have already sold out for the grand opening, which will include a block party; however, consuming cannabis outside of the lounge is forbidden under state law which does not allow cannabis use in public spaces.

The Smoke-Free Illinois Act was amended following broad cannabis legalization in the state to allow for consumption lounges. Local governments are allowed to create their own rules for social-use businesses, as long as they meet basic guidelines outlined by the state, including limiting customers to 21-and-older, designating specific areas for consumption, and keeping the door to that area locked, the report says.

Luna customers will have to bring their own cannabis and the lounge will offer papers, pipes, and other accessories for purchase or rent.

In March, Roeder had told the Southern that she planned to open the business by May, but the date was pushed back due to construction delays and project cost increases. The cost for all building materials has increased during the coronavirus pandemic, with brick prices rising 3.5%, concrete and related products prices jumping 3.6%, cement prices increasing 3%, glass costs growing 2.4%, steel pipe and tube, and stainless steel costs rising 6.4%, and hardwood and softwood lumber increasing 19.6% and 78.8%, respectively, according to an UpNest analysis.

Roeder said that the businesses have not been affected by the coronavirus-related labor shortage and she has been getting “resumes by the buttload,” which she attributes to the lounge being “a weird, cool business.”

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Pennsylvania to Allow 3-Month Supply for Medical Cannabis Patients

7/02/2021

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Pennsylvania Gov. Tom Wolf on Wednesday signed a bill implementing changes to the state’s medical cannabis program, including allowing patients to obtain a three-month supply of their medicine as opposed to just a one-month supply.

The legislation also adds cancer remission therapy and neuropathies of the central nervous system to the state’s qualifying conditions list and expands the number of facilities that study patient outcomes to medical cannabis.

“It’s been five years since Pennsylvania legalized medical marijuana, and in that time the Department of Health has examined the program’s successes and challenges and made important recommendations on improving the law. This legislation provides important updates to our state’s medical marijuana program to ensure that patients have improved access to medication.”—Wolf in a press release

Additionally, under the new law, cannabis companies can now remove contaminants from cannabis plants, such as mold and yeast, and process them into topical products, WESA reports. It also allows companies to designate workers and “caregivers,” allowing them to deliver cannabis to patients’ homes—a flexibility “enacted under the state’s COVID-19 disaster declaration that patients and dispensaries found convenient,” the Governor’s Office said.

Wolf had urged lawmakers to pass adult-use cannabis reforms during this year’s session, saying last year that revenue generated from the industry “might be one way” to bridge the state’s budget gap. He told Go Erie that he is “going to keep pushing for legalization and restorative justice” until lawmakers approve broad legalization, noting support for the reforms by a “vast majority of Pennsylvanians.”

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Edibles: Small Bites for the Modern Cannabis Kitchen Review

7/02/2021

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Many cannabis cookbooks vary in their level of both culinary and cannabis expertise. Edibles: Small Bites for the Modern Cannabis Kitchen by Stephanie Hua with Coreen Carroll is a complete text meant for cooks at any stage in their edibles journey. Hua is a former food writer turned owner of the gourmet edibles brand Mellows based in San Francisco, California. Mellows focuses on elegant flavors and low doses for cultivating an experience alongside a delicate high, and Hua is the master recipe formulator. Carroll is a San Francisco chef who founded the Cannaisseur Series, an infused pop-up dinner series, and recently won the Netflix competition series Cooked with Cannabis. Their combined experience, exciting recipes, and beautiful photos make this a cannabis cookbook worth displaying alongside your favorite culinary references.

The introduction is followed by detailed education on important topics that are imperative for understanding how cannabis works when ingested. Read about cannabinoids, terpenes, and common medicinal uses for cannabis alongside equations detailing how to properly dose your edibles. The authors carefully developed these equations with various types of cannabis infusions using a specific Sour Diesel and test results from CW Analytics. This level of detail brings a necessary section to the genre that some other books don’t address — not only will the reader have gourmet recipes at their fingertips, but they’ll also gain an understanding into how to properly dose their creations.

This educational portion of the book is followed by a series of Master Infusion recipes like the classic cannabutter alongside intriguing maple syrup and sous vide infusions. The authors each share innovative, enjoyable recipes throughout the book. Special guests like Kenny Morrison of the Venice Cookie Company and Monica Lo of Sous Weed also share their infused specialties. The guest spots are a welcome collaborative addition to the book, highlighting various talented cannabis chefs in one handy guide.

Those of us who have made edibles in our home kitchens have probably infused the classics like cookies or brownies, but Edibles takes the infused dish one step further. The book empowers the home cook with a variety of recipes that can be cooked alone or creatively combined into a multi-course infused meal. Appetizers like Roasted Grape Crostini, Gruyere & Green Garlic Gougeres, or Roasted Beet Hummus will dazzle guests or simply start off a fancy feast for yourself. For the main course, enjoy Duck Meatball Sliders or Corndog Muffins, and finish off with the large array of showstopping desserts like author Steph Hua’s signature Birthday Cake Mellows. Each recipe is impressive on its own, but the ability to combine them and build a menu is novel and speaks to the pop-up infused meal experience of author Correen Carroll’s Cannaisseur Series.

Edibles: Small Bites for the Modern Cannabis Kitchen is a gift to the cannabis and culinary industries alike. This book offers a rich look at the world of edibles from within the scene, from its ample education opportunities, to the spotlights on fellow chef’s creations, to recipe variety. It is not only suitable for the gastronomic stoner but it would also be a fun buy for parents who are newly interested in the plant or chefs with little knowledge of cannabis.

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North Carolina Medical Cannabis Bill Clears Senate Judiciary Committee

7/02/2021

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A North Carolina medical cannabis bill has cleared a critical committee hurdle on its way to potentially becoming law, according to the Winston-Salem Journal. The North Carolina Compassionate Care Act (NCCCA) passed the Senate Judiciary Committee on Wednesday.

The proposal still needs to pass three more committees and has an uphill battle to the Senate floor, but the legislation does enjoy bi-partisan support, sponsored by Rules and Operations Committee Chair Sen. Bill Rabon (R), Sen. Paul Lowe (D), and Sen. Michael Lee (R), the Journal reports.

Although the bill is seen as progress after 12 years of attempts to pass the reforms in the Tar Heel State, the proposal is described by Democratic Sen. Wally Nickel as “the most conservative and restrictive medical marijuana bill in the country.”

“This bill is narrowly tailored to offer medical marijuana to those with legitimate medical needs.”—Nickel via the Winston-Salem Journal

During testimony, Rabon, the prime sponsor and a cancer survivor, assured critics the legislation would not lead to recreational cannabis reforms in the state.

Lee elaborated, saying, “Recreational marijuana use is not something we want in our state, but that should not keep us from doing the right thing for those dealing with chronic and debilitating conditions.” Additionally, he said a medical cannabis system could be used to teach teens and young adults about “overall” cannabis use.

Lowe believes the bill is another way to improve health care in North Carolina using “medical technology.” Lowe said, “some people need certain kinds of help to get better, and we should do all that is necessary to help them.”

Rabon testified that he knows “how rough it is to go through chemo and how bad it is to wake up every day and think it may be your last day on Earth.”

“There is nothing less compassionate on this Earth than to watch a person you love suffer when there is something that can ameliorate that suffering,” he said.

Despite the restrictive characterization of the bill, it says, in part, “modern medical research has found that cannabis and cannabinoid compounds are effective at alleviating pain, nausea and other symptoms associated with several debilitating medical conditions.”

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Adult-Use Cannabis Possession Now Legal in Connecticut and Virginia

7/01/2021

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Portions of the legislature-approved legalization laws in Connecticut and Virginia take effect today including possession and use for adults 21-and-older in both states. In Virginia, adults will be able to grow up to four plants per household, but recreational sales will not commence in the state until 2024.

In Connecticut, retail sales are expected late next year.

Virginia lawmakers approved the reforms in March, making it the first state in the South to end cannabis prohibition. Starting today, it is legal for Virginians over 21 to possess up to 1 ounce and gift up to that amount to another adult. Consumption in the state is only permitted in private.

In Connecticut, where Democratic Gov. Ned Lamont just signed the legalization bill last week, adults can possess 1.5 ounces in public and up to 5 ounces in a locked container at home or in a car. Adults will eventually be allowed to cultivate their own plants on July 1, 2023, but provisions of the law de-felonizing home grows up to six plants take effect today.

The Connecticut law also includes a requirement for municipalities that opt-in to the market to create outdoor spaces for cannabis consumption, WTNH reports.

Earlier this year, adult cannabis use and possession reforms also took effect in New York; while on Tuesday portions of New Mexico’s adult-use law—including possession and use—also kicked in.

In Virginia, the reforms were not initially set to become the law of the land until 2023, but lawmakers passed a bill to push up the launch date following criticism.

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Study: 70% of Michigan Cannabis Sales Occur in Unregulated Market

7/01/2021

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The majority of cannabis transactions in Michigan—70%—happen outside retail stores, according to a Michigan Cannabis Manufacturers Association-commissioned (MCMA) study conducted by Anderson Economic Group outlined in a WZZM report. The study, which included an analysis of both regulated and unregulated sales, suggests the state’s total industry is worth $3.2 billion.

The study also found that one in five Michiganders reported using cannabis in the last year and that the state’s cannabis industry generated $169 million in tax and fee revenue in 2020.

Stephen Linder, executive director of the MCMA, said the group commissioned the study because its members wanted “facts and truth” to help inform themselves and policymakers.

“The only way to make strategic decisions to move forward as an industry is to understand the market in which you’re operating. And we thought the best thing to do, since nobody had taken the time to do it, was to do a baseline economic study.”—Linder to WZZM

Narmin Jarrous, chief development officer of Exclusive Grand Rapids Medical & Recreational Marijuana Dispensary, suggested that there were several reasons the majority of the state’s cannabis sales are happening outside of legal channels, including municipalities opting out, retail prices that are higher than untaxed products, a fear of regulatory bodies, or being anxious to shop in post-COVID world.

“When you’re depriving these municipalities from having these stores, this is what happens. People do turn to the illicit market and you can’t really fault people for trying to get their medicine in every which way they can,” he said to WZZM. “If we try to mitigate some of those problems maybe we can drive more consumers back into licensed retail stores with safe, clean, tested marijuana.”

The state’s largest city, Detroit, still does not have any recreational dispensaries despite adult-use sales commencing in 2018. The lack of sales in the city is due, in part, to court challenges to the Motor City’s so-called legacy licensing plan, which aimed to give Detroiters first chance at the licenses.

Earlier this month, a federal judge ruled those legacy rules “likely unconstitutional.” The city’s ordinance includes language that says no licenses will be issued or renewed if any part of the local law is deemed unconstitutional or otherwise struck down. The city had planned to begin issuing licenses on May 1.

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Mexican President Supports Referendum on Cannabis Legalization

7/01/2021

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Following the Supreme Court of Mexico decriminalizing cannabis earlier this week, President Andres Manuel Lopez Obrador indicated he would leave the door open for a public referendum on cannabis legalization, according to a Reuters report. He said he would “respect” the court’s decision, but if the ruling did not lower addiction rates or violence, the public may need to weigh in on the issue.

“Of course we’re going to respect what the court has decided and we’re going to evaluate. We’re going to see what effects it has,” Lopez Obrador said during the press conference while answering a question on the Supreme Court’s decision, adding that there are “two views” on the issue of cannabis legalization in Mexico, a split he acknowledges exist in his own cabinet.

Mexico’s House passed a cannabis legalization bill in March, but the measure has stalled in the Senate, according to the report. Lopez Obrador said along with the public referendum he could send a new bill to the Senate if the Supreme Court’s action is ineffective.

In the landmark decision, after declaring the law unconstitutional, the court said citizens 18-and-older could apply to possess up to an ounce of cannabis. Additionally, the Federal Committee for Protection from Sanitary Risks will issue permits for cannabis production.

If Mexico legalizes adult-use cannabis it will become the world’s largest cannabis market by population and isolate the U.S. as the only country on the continent where adult-use cannabis is not legal. Mexico legalized medical cannabis in 2017.

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New Orleans Committee Unanimously Approves Cannabis Decriminalization

7/01/2021

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The New Orleans, Louisiana City Council Criminal Justice Committee has unanimously approved a proposed ordinance that would decriminalize possession of up to 14 grams of cannabis, dismiss more than 10,000 low-level cannabis possession crimes, and pardon all future minor possession charges, KLFY reports.

Council President Helena Moreno has maintained that data shows 86% of cannabis summons in the city are issued to Black people. She has indicated she would like to fully legalize cannabis for adults in the city but is unable due to state law.

“We can’t make it legal but what we can do is enforce our laws and put in mechanisms that puts us as close to legalization. This is important for racial and social justice when we end the conviction for this drug charge we’re going to help with housing and employment issues.”—Moreno to WAFB

The law would not allow people to use cannabis in public and state law would still apply but it would change how the New Orleans Police Department handles such cases in the city.

Earlier this month, Louisiana Democratic Gov. John Bel Edwards signed a measure making possession of up to 14 grams of cannabis a misdemeanor punishable by a $100 fine and no possibility of jail. During the signing ceremony, Edwards said he believed “deeply that the state of Louisiana should no longer incarcerate people for minor legal infractions, especially those that are legal in many states.”

In March, the Shreveport City Council approved a measure to decriminalize up to 14 grams of cannabis for adults 21-and-older becoming just the third city in the state to approve such reforms.

New Orleans’ proposal still needs to go before the full council, which according to KLFY could take weeks.

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California Assembly Committee Approves Psychedelic Decriminalization Bill

6/30/2021

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The California Assembly Public Safety Committee on Tuesday passed the Senate-approved psychedelic decriminalization bill, the Associated Press reports. The version approved by the committee includes psilocybin, DMT, ibogaine, mescaline (excluding peyote), LSD, and MDMA but does not include ketamine due to concerns over its use as a “date-rape drug.”

Committee Chairman Assemblyman Reggie Jones-Sawyer (D) said including ketamine in the legislation “would have just confused what [lawmakers] want to get accomplished.”

The bill allows for “social sharing” of psychedelics by adults 21-and-older and eliminates the state ban on cultivating or transporting psychedelic mushroom spores.

Sen. Scott Wiener, a Democrat and bill sponsor, said the bill works towards ending the War on Drugs that, he said, “has made us less safe because people use in the shadows” and described opposition to the reforms as “the psychedelic equivalent of ‘Reefer Madness,’ that this is going to do all sorts of horrible things.

“And that is just not true,” he said in the report.

The bill also includes language to end abstention messaging in state drug and alcohol programs.

The cities of Oakland and Santa Cruz, California have already decriminalized some psychedelics derived from plants and fungi. Denver, Colorado was the first-in-the-nation to decriminalize psilocybin more than two years ago. Since then, Washington, D.C.; Ann Arbor, Michigan; and Somerville and Cambridge, Massachusetts passed similar measures.

During the 2020 General Election, Oregon voters approved a ballot question to decriminalize all drugs.

The bill moves next to the chamber’s Health Committee before a potential floor vote.

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Oregon Legislature Approves Bill to Regulate Hemp-Derived Cannabinoids

6/30/2021

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The Oregon legislature has passed a bill that seeks to more tightly regulate both Delta-8 and Delta-9 THC, according to a KDRV report.  Beyond defining adult-use cannabis, artificial cannabinoids, and Delta-9, the measure more closely regulates total THC in hemp.

The legislation allows the Oregon Liquor Control Commission (OLCC) and Department of Agriculture (ODA) to set total THC limits for hemp products, set up a hemp processing licensing system, and directs the ODA to submit its hemp processing plan to the Federal Department of Agriculture—a plan they withdrew last year. Additionally, the bill provides resources to law enforcement to combat illegal cannabis grows, which are booming in Jackson County, according to the report.

Prime sponsor of the legislation, Republican Rep. Lily Morgan, told KDRV that in her community the proposal “is more than a lifeline.”

“For us, it is an opportunity for us to regain control of our community, freeing citizens of fear of safety.”—Morgan to KDRV.

Morgan says the bill was created with input from legal cannabis growers and law enforcement, and that it will protect minors from consuming hemp products that contain THC. The bill now awaits Democratic Gov. Kate Brown’s signature.

Oregon is just the latest state to ban the sale of Delta-8, a minor cannabinoid that is synthesized from CBD. Due to gray areas in the law Delta-8 is being sold outside regulated cannabis systems around the country, concerning law enforcement, regulators, and the legal cannabis industry.

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St. Regis Mohawk Tribe First in New York State to Pass Adult-Use Ordinance

6/30/2021

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New York’s St. Regis Mohawk Tribe on Monday finalized an ordinance to allow adult-use cannabis sales and cultivation of up to 12 plants by individuals, North Country Public Radio (NCPR) reports. The tribe is the first in the state to authorize adult cannabis use.

The regulation takes effect as some unlicensed cannabis sales are already occurring on tribal land and leaders are calling on those businesses to shut down and apply for a license and, if they fail to do so, they will be unable to apply for a legal license in the future. Tribal Chief Eric Thompson told NCPR that the tribe appreciates “those entrepreneurs who have been patient and who know that tribal processes must be followed to ensure the regulations are completed in a responsible manner with community input.”

“Approved and tested products will soon be available at tribally licensed stores, which customers can trust as being a safe product that is being regulated in a socially responsible manner.”—Thompson to NCPR

The tribe indicated they have already received dozens of applications for legal cannabis businesses following the approval of the ordinance, which requires seed-to-sale tracking.

The tribe first approved the development of the ordinance in 2019 but had to wait until New York state legalized adult cannabis use, which did not occur until last March.

There are at least four retail shops selling cannabis to adults on tribal land despite cease-and-desist orders from the tribal government.

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Alabama Police Take Child from Michigan Couple Following Arrest for Cannabis Possession

6/30/2021

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Authorities in Alabama placed the toddler of a Michigan couple in foster care after they were arrested for cannabis possession, according to an AL.com report. The couple were heading back to their home state after Erika Prock picked up her husband, Todd, from his parents’ house and the couple had stopped for lunch when they were approached by a police officer who claimed to smell cannabis on Todd’s breath.

Todd admitted he had cannabis in the trunk of the vehicle and the officers arrested the couple and the state took custody of the child. In their home state of Michigan, cannabis has been legal since 2018. In Alabama, cannabis remains prohibited for any use.

“I don’t understand how the same situation in two different states can differ so drastically to the point where in one state your child is taken and put into foster care over marijuana and you’re charged with chemical endangerment but in another state, they consider it legal and safe and you go home to your family that night and never have to worry about your child being taken.”—Erika Prock to AL.com

The chemical endangerment charge, a felony, was originally created to target parents whose children were near methamphetamine laboratories, the report says.

Instead of going back to Michigan, the couple has moved into a tent behind Todd’s parents’ trailer while they fight the charges in both criminal and family court.

A prosecutor has already dismissed cannabis possession and public intoxication charges against Erika after she produced hospital discharge records for her sprained ankle—which led the arresting officers to conclude she had failed a field sobriety test —and two years of clean drug tests from a methadone clinic, the report says. Todd still faces a felony cannabis possession charge—for four-and-a-half ounces—and both still face the chemical endangerment charge.

In Michigan, possessing four-and-a-half ounces of cannabis would have led to a civil penalty similar to a traffic ticket.

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