Colorado Gov. Signs Bill Allowing Medical Cannabis in Schools

5/07/2021

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Colorado Gov. Jared Polis (D) has signed the bill allowing the storage and administration of non-smokable medical cannabis by school personnel on K-12 school property, the Denver Post reports. The law change removes school principals’ authority to allow or deny medical cannabis on school grounds and allows children with complicated medical conditions to access their medicine.

“The bill imposes a duty on school principals to create a written treatment plan for the administration of cannabis-based medicine and on school boards to adopt policies regarding actual administration. The bill provides disciplinary protection to nurses who administer cannabis-based medicine to students at school. The bill requires schools to treat cannabis-based medicine recommendations like prescriptions.” – SB 21-056

“I’m pleased to sign this bill, which finally will treat cannabis the same way as other prescribed medicines,” Polis said during the signing on Wednesday.

The bill does allow any school staffer who is uncomfortable storing and administering medical cannabis to recuse themselves, but officials cannot opt out of the law.

Republican state Rep. Kevin Van Winkle, one of the bill’s sponsors, told the Post that the reforms have “been a long road coming.”

“Parents should not have to choose between their child’s education and access to life-saving medication,” he said in the report.

State Sen. Chris Holbert, the Republican who introduced the legislation, has previously called the measure “the most important bill” he would sponsor in his career.

The legislation received bipartisan support from 90 of the state’s 100 lawmakers.

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Louisiana House Passes Smokable Medical Cannabis Bill

5/07/2021

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In a 73 to 26 vote, the Louisiana House of Representatives approved a bill that will allow “smokable” medical cannabis, according to The Advocate. The bill, sponsored by House Speaker Pro Tempore Tanner Magee (R), will allow patients to purchase up to 72 grams of “smokable” product at a time. Currently, Louisiana patients can only purchase non-smokable forms of cannabis like tinctures or gummies.

Speaker Magee, who also introduced legislation to tax medical cannabis and spend the money on transportation projects, cited lower prices for patients and pointed out that surrounding states like Arkansas and Mississippi allow for “raw” cannabis flower as reasons to pass the bill.

“Your constituents are going to get this. It depends on if they’re making a drive to Mississippi and bringing it back to Louisiana or making a drive to Arkansas and bringing it back to Louisiana.” — Speaker Magee via The Advocate

Expected to bring in $1.7 million the first year, the state forecasts the changes will bring in an additional $12 million by 2026, according to the report.

Although the bill is expected to face an uphill battle in the Louisiana Senate, that did not slow down the House — where there is also a bill sponsored by Rep. Richard Nelson (R) to legalize adult-use cannabis — from taking up the reforms.

According to The Advocate, an LSU Public Policy Research Lab poll in 2019 found 55% of Louisianans supported legalizing small amounts of cannabis for adult use. This year, polls conducted by medical cannabis groups found 65% of Louisianans support adult-use reforms.

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Report: Credit Suisse No Longer Trading or Holding Cannabis Stocks

5/07/2021

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Credit Suisse Group AG has indicated it will no longer perform transactions in shares of cannabis firms with U.S. operations or hold such shares on behalf of clients, according to a Reuters report citing a cannabis industry executive and other industry sources.

The bank, which was one of few banks that would trade cannabis stocks for U.S. clients and hold those shares as a custodian, has neither confirmed the report nor provided comment.

Abner Kurtin, CEO of cannabis company Ascend Wellness Holdings Inc, said that when the bank pulled its custodian services on cannabis stocks, “a number of large investors in the space lost their ability to custodian the stocks” which “led to a significant selloff.”

A custodian bank holds clients’ securities for safekeeping, to prevent them from being lost or stolen, the report says. The bank also collects dividends and handles other corporate actions, playing an important role in assisting investors to hold shares in companies.

The cannabis industry represents a legal risk for investment banks as the plant remains outlawed under U.S. federal law. Companies based in Canada with a footprint in the U.S. are traded on the major stock exchanges in both their home nation and the U.S.

Credit Suisse’s compliance and risk management procedures have come under fire after the bank lost at least $4.7 billion from the collapse of Archegos and the suspension of funds linked to insolvent supply chain finance company Greensill, according to Reuters.

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Cherokee Tribe in North Carolina Legalizes Cannabis Possession

5/07/2021

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The Tribal Council for the Eastern Band of Cherokee Indians on Thursday voted to legalize medical cannabis and possession up to one ounce by adults 21-and-older, Spectrum News 1 reports. Cannabis sales and cultivation remain outlawed but Principal Chief Richard Sneed said the vote is the first toward broader reforms.

“There’s so much science now supporting cannabis as a medicine. This really is a quality-of-life issue as well for folks who have debilitating diseases, chronic pain, chronic back pain, cancer. This is really just the first step, or kind of the cornerstone of moving toward medicinal. We have to have this in place first.” – Sneed to Spectrum News

The Nation’s lands include about 100 square miles in the mountains of western North Carolina, called the Qualla Boundary. While possession of a half-ounce or less is punishable by only a fine in North Carolina, the tribe’s successful vote makes it the first area in the state to legalize cannabis possession for adults. North Carolina does not have a medical cannabis program.

During the meeting, Councilmember Richard French noted that legalizing medical cannabis could help the tribe with the opioid epidemic.

“All of us have been affected by the opioids. All of us have lost someone,” he said prior to the vote. “It’s for the betterment of our people.”

The council did remove part of the ordinance that would have allowed individuals to give away small amounts of cannabis without remuneration.

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Dr. Markus Roggen: Quantifying the Medicinal Potential of Psilocybin

5/06/2021

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With legal access to psilocybin therapy growing, researchers are committed to understanding and quantifying its potential benefits. As the founder of Complex Biotech Discovery Ventures (CBDV) — a British Columbia-based research laboratory that focuses on extraction optimization, analytical testing, and chemical process development for the cannabis and psilocybin industries — Dr. Markus Roggen holds a unique perspective on the issue.

In this written Q&A, Dr. Roggen discusses the importance of understanding psilocybin’s chemistry, getting licensed to research psilocybin by Health Canada, and the similarities and differences of cannabis vs. psilocybin research. The interview also covers psilocybin’s growing prevalence and popularity, the unknowns that researchers hope to understand, and more!

Ganjaprenuer: What is your background in chemistry and cannabis? How has this career brought you to researching psilocybin?

Dr. Markus Roggen: I received master’s degree in Science from Imperial College and PhD in organic chemistry from the Federal Institute of Technology in Zürich (ETHZ). After a postdoctoral fellowship in physical organic chemistry at The Scripps Research Institute, I serendipitously end up in the cannabis industry in 2014. I focus on extraction optimization and the development of innovative analytical tools. I founded Complex Biotech Discovery Ventures (CBDV), a licensed cannabis and psilocybin research laboratory in Vancouver, Canada.

Psilocybin mushrooms are another shiny thing. I realize that our expertise fits with the current knowledge gaps for mushroom research. In particular, our cannabis work protocols and facility upgrades set us up to work with another controlled substance.

How can understanding psilocybin chemistry facilitate the development of effective psychedelic therapy?

How could any therapy be repeatable, if no one knows what was part of the initial effective therapy? It will be the job of chemists to build an understanding of what was in the mushroom, which compounds were important, and how to extract/produce those compounds for subsequent therapies.

Are you using a specific species of mushroom to extract and study psilocybin?

No, right now the legal supply of psilocybin mushrooms in Canada is extremely limited. We are still in the process of securing any species.

What is the focus of your work with the psilocybin research license from Health Canada?

We are developing new analytical methods for psilocybin quantification. Right now, HPLC is the standard analytical tool. We want to add IR and electrochemical probes to the repertoire. Such tools would allow producers or medical professionals to test mushrooms on site.

What kind of research capabilities do you have at CBDV besides developing quantification procedures for Health Canada?

We have a few toys in our lab from the cannabis research we also do. But more interesting is our close collaboration with the University of British Columbia, where we can use their NMR, high-res MS and other high-powered analytical instruments. We are very good in hunting down and identifying unknown compounds in extremely low quantities.

Have you noticed similarities and differences between cannabis and psilocybin mushrooms?

Both botanicals are under strict legal control and have a stigma associated with them. Both are unresearched but hold great potential for medical use. The major compound of interest, psilocybin, in mushrooms is water-soluble, while the active in cannabis, THC, is not at all water-soluble.

As a funny analogy between cannabis and mushrooms is how they produce the pharmaceutically active ingredient. Cannabis produces THCA that must be decarboxylated to THC, which is psychoactive. In mushrooms, psilocybin is produced, but needs to be dephosphorylated to become psilocin, the psychedelic substance.

With psychedelic legalization gaining traction, how do you see the two industries (cannabis and psilocybin) merging in the future?

First of all, you should not smoke mushrooms. That is dangerous, as spores could end up in your lungs. And making tea from dried cannabis flower will be less than exciting. But my fear is that the opportunistic business people will move on from cannabis to mushrooms, inflate stock values of immature companies and prevent the mushroom industry from building a solid foundation.

Would you explain some great unknown areas of the chemistry of psilocybin and how your team plans to illuminate new concepts?

How many tryptamine compounds are there in mushrooms? We commonly know of 7. But an 8th tryptamine is kind of a given based on the biosynthesis. This likely is still not the end of all interesting compounds in mushrooms.

And another open question is the production of mushroom extracts. Right now, there is very little published on producing defined and reproducible extracts. This question fits perfectly with our expertise.

What cannabis extraction systems and protocols will work in the development of a reproducible psilocybin extract? How may the processes differ?

The main difference between Psilocybin and Cannabinoids is that that the former is water-soluble and the latter are not. Therefore, many of the processes used in cannabis like, hydrocarbon extraction, will not work at all. Although, what will be important is to look at what else is extracted when one targets the main active ingredient. Also, it is our job to figure out how to finetune the extraction system to produce a highly desirable product.

Psilocybin compound and therapy set patents have recently been filed in the U.S. — how does patenting specific compounds and therapeutic processes help or hinder the research process?

Patents allow the discoverer to make money off the hard work of developing this insight. Therefore, any patents and their projected future value will drive more innovation. Right now, there is still a lot of work needed in this space. Sure, there are weird patents granted that have little scientific merit or are aimed at pushing out competition. Although right now the field is wide open, and one does not have to step on one another.

Thank you, Dr. Roggen, for taking the time to answer our questions and share your expertise! Visit CBDVL.com to learn more about Dr. Roggen and the founder of Complex Biotech Discovery Ventures

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Skittles Manufacturer Sues Cannabis Brands for Trademark Infringement

5/06/2021

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New Jersey-based candy maker, Mars Wrigley, is suing cannabis companies in Illinois, California, and Canada to stop them from using its brand names and marketing for infused edibles, the Chicago Sun-Times reports. The lawsuit, filed in federal court, accuses the companies of infringing on the Starburst and Skittles candy brands.

“Mars Wrigley strongly condemns the use of popular candy brands in the marketing and sale of THC products, which is grossly deceptive and irresponsible. The use of Mars Wrigley’s brands in this manner is unauthorized, inappropriate and must cease, especially to protect children from mistakenly ingesting these unlawful THC products.” – Mars Wrigley in a statement via the Sun-Times

The lawsuit names Terphogz and five companies that sell a cannabis strain and related products called Zkittlez, the report says. The unnamed defendants are “unknown” to  Mars Wrigley but they are accused of purchasing the goods in question to resell to Illinois customers.

The California lawsuit targets products called “Medicated Skittles,” “Life Savers Medicated Gummies,” and “Starburst Gummies” – marketed by GasBuds – which appear to mimic the packaging of the popular, non-cannabis, confections.

The legal actions are the latest against cannabis companies for trademark infringement of popular consumer products.

Atlanta, Georgia-based Edible Arrangements in September sued Chicago’s Green Thumb Industries for using their brand name in their Incredible product, according to the Sun-Times. Two months later, Ferrera Candy Co. sued California-based Tops Cannabis over its “Medicated Nerds Rope.”

Other lawsuits have brought over the “Woodstock” brand; the logo of a Massachusetts lumber company; the Citibank name, parodied as “Citidank;” the Tapatio hot sauce name and logo; the Gorilla Glue brand; and the logo of the National Hockey League’s Toronto Maple Leafs, among others.

Mars Wrigley is seeking $2 million for each counterfeit trademark named in the California lawsuit, along with attorneys’ fees and costs in both cases.

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Florida Ends Cannabis Testing for Boxers/MMA Fighters

5/06/2021

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The Florida Boxing Commission voted on Tuesday to end the practice of drug screening professional boxers and MMA fighters for cannabis use, ESPN.com reports.

According to Florida Department of Business and Professional Regulation spokesperson Patrick Fargason, the commission’s vote was based on recommendations by the Association of Boxing Commissions’ medical advisory committee and the Ultimate Fighting Championship’s (UFC) anti-doping policy, set by the U.S. Anti-Doping Agency. Previously, a fighter’s positive drug test for THC — even trace amounts — was cause for a fine, suspension, and even the overturning of a competitor’s victory.

“We’re not testing for it. We’re not doing anything with it — period.” — Fargason, via ESPN.com

Florida’s rule change took effect immediately following Tuesday’s vote but only affects in-state boxing and MMA matches. The shift aligns Florida with the UFC, which announced in January that it had removed THC from its list of banned substances except in cases where an athlete uses it “intentionally for performance-enhancing purposes.”

Last year, UFC officials shared details about a CBD research partnership between the league and Canada’s Aurora Cannabis into the cannabinoid’s potential pain relief and potential anti-inflammation properties.

Other major sports leagues have also adjusted their rules for cannabis use:

  • The NBA announced in December it would no longer test players for cannabis.
  • The NFL’s latest collective bargaining agreement, announced in May, removed the threat of league suspension for players who test positive for cannabis use.
  • The MLB announced last March that players are allowed to use cannabis in their personal lives but cannot partner with or accept sponsorships from cannabis companies.

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Studies Find Pandemic Shifted Reasons for Cannabis Use & Methods of Purchase

5/06/2021

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Two recently published, separate industry surveys suggest that the coronavirus pandemic has impacted both how people get their cannabis and the reasons for their use.

A Veriheal survey found 55% of patients who applied for medical cannabis cards over the past year said their main reason for using cannabis was “to feel happy,” while a Ganja Goddess poll found 90.1% of respondents used delivery services as the primary way they purchased cannabis during the pandemic.

Ganja Goddess found 78.1% used cannabis to help manage health, including mental health, conditions throughout the pandemic. The next top three reasons being sleep (72.6%), anxiety (66.8%), and pain (54.1%). The cannabis firm found 54.8% of respondents increased cannabis consumption since the pandemic’s onset, with 80.6% indicating daily use.

In the Veriheal study – conducted in partnership with graduate researchers from the London School of Economics, University of Southern California, University of Maryland, and the Cultivating Research Education and Advocacy (CREA) Group – researchers found that 39% of Baby Boomers primarily used cannabis for happiness, along with 45% of Gen Xers, 28% of Millennials, and 29% of Gen Z.

Maha Haq, CEO of CREA and graduate student at University of Maryland’s School of Pharmacy, said the study results nullified the researchers’ hypothesis.

“When we began investigating the relationship between medical cannabis use and COVID-19, our original hypothesis was that cannabis demand would increase with COVID-19 cases as people sought out physiological relief and ways to manage stress. … Instead, we found that people are seeking psychological relief in response to exogenous shocks including COVID-19 and beyond. Periods of social unrest, such as the Black Lives Matter protests and 2020 elections, can be seen as spikes in medical cannabis interest within our datasets.” – Haq in a press release

Meanwhile, the Ganja Goddess survey found that 60% of consumers would prefer to have their cannabis delivered post-pandemic. Prior to the pandemic, just 20.7% of cannabis consumers said delivery was their preferred means of purchase.

Ganja Goddess CEO Zachary Pitts noted that “since the start of the pandemic, Americans are spending more time than ever at home, leading to an overwhelming national demand for delivery services.”

“The initial spike in cannabis delivery sales was noteworthy, but its continued prevalence more than one year later speaks volumes,” he said in a statement. “A rise in cannabis consumption and greater emphasis on managing health further highlight the impact of these challenging times.”

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New Mexico’s Medical Cannabis Reciprocity Rule Changes Declared Unlawful

5/06/2021

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A district court judge in New Mexico on Monday ruled that the state Department of Health has been running afoul of the Legislature’s intent by denying reciprocity to out-of-state patients in the state’s medical cannabis program, the Santa Fe New Mexican reports. The lawsuit was brought against the agency by New Mexico Top Organics-Ultra Health.

According to the report, state law allows someone with a medical cannabis card in another state to purchase cannabis in New Mexico and be enrolled in the Health Department’s database as a reciprocal patient. In March, the agency made a rule change and barred not only reciprocal patients from other states from enrolling in New Mexico’s program but also denied in-state residents from enrolling as patients if they would otherwise qualify as reciprocal patients, First District Judge Matthew Wilson ruled.

Ultra Health argued that more than 5,000 people, mostly out-of-staters, were being wrongly denied access to medical cannabis by the rule change, for which health officials had enacted without consulting the New Mexico Medical Cannabis Advisory Board as required by the state statute, the report says.

Next month, licensing for cannabusiness will shift from the Department of Health to the Regulation and Licensing Department’s Cannabis Control Division following the legislature’s approval of the reforms in April.

Last year, Wilson also overturned an “emergency” rule change by the Health Department saying there was no reason to change the reciprocity rules without going through the normal process for rule changes. The Department of Health, ultimately, altered that rule through the standards process, the report says.

Department of Health spokesman Jim Walton said in an email to the New Mexican that the agency “is considering its legal options” following the ruling.

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Illinois Tax Revenue from Cannabis Surpasses Alcohol

5/05/2021

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Cannabis tax revenues in Illinois surpassed those of alcohol in the state for the first time through the first quarter of the year, totaling $86 million compared to $72 million, Newsweek reports. The state is on pace to sell more than $1 billion in adult-use cannabis products this year, which would be a new state record.

According to Department of Financial and Professional Regulation data outlined by the magazine, consumers are spending about $3.5 million daily on adult-use cannabis products in the Land of Lincoln. In March, recreational cannabis sales reached $110 million. The following month was the state’s highest-grossing for cannabis sales at nearly $115 million.

In 2020, Illinois sold $670 million worth of cannabis-related products, which generated $205 million in total tax revenue.

Since adult-use cannabis sales began in 2020, the state has sold $1,064,750,968 worth of cannabis products, according to state data cited by NBC Chicago.

In April, Wisconsin Gov. Tony Evers (D) said that he was “tired” of Illinois Gov. J.B. Pritzker (D) thanking him for the tax revenues from Wisconsinites who cross the border to buy cannabis in his state, as it remains outlawed for adult use in the Badger State.

According to a Leafly report, Illinois nets about $10 million from out-of-state cannabis sales every month with visitors comprising about a quarter of cannabis sales.

None of Illinois’ border states have yet approved the reforms.

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Edmund DeVeaux: Pushing for Equitable Cannabis Opportunities in New Jersey

5/05/2021

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New Jersey’s cannabis legalization bid was a long-sought and hard-fought victory, only achieved through the collaboration of advocates, lobbyists, and lawmakers. As President of the New Jersey CannaBusiness Association — which works to promote jobs and growth in a sustainable, responsible cannabis industry — Edmund DeVeaux was closely attuned to the process.

In this episode of the Ganjapreneur.com podcast, Edmund joins our host TG Branfalt to discuss his life and work as a cannabis industry lobbyist, New Jersey’s exciting industry prospects, and his efforts to ensure fair and balanced cannabis industry opportunities for all. This interview also covers legalization in neighboring states including New York, the nature of political compromises, his advice for budding cannabis entrepreneurs, and more!

Note: This interview was recorded after New Jersey’s cannabis legalization initiative was approved by voters and lawmakers delivered a cannabis regulations bill to the governor, but before the governor officially signed the bill into law.

Listen to the podcast:

Read the transcript:

Commercial: Ganjapreneur is excited to announce the launch of our new YouTube series, THE FRESH CUT, hosted by Cara Wietstock.

Cara Wietstock: Hi, I’m Cara Wietstock, host of THE FRESH CUT by Ganjapreneur. In this interview series, we get straight to the source and speak with the real people working in the industry. In our first episode, I spend time with Nancy Southern, whose current mission is to educate seniors on cannabinoid medicine. She lets us know how to facilitate a comfortable retail setting for older adults and provides product recommendations directly from her own experience. Catch this and all future episodes on YouTube.

TG Branfalt: Hey, there. I’m your host, TG Branfalt. And thank you for listening to the Ganjapreneur.com podcast where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today, I am joined by a very, very interesting guest. His name is Edmund DeVeaux. He’s the president of the New Jersey CannaBusiness Association. He previously served as its policy director and worked in the New Jersey Treasury Department. He was also a commissioned officer in the US Army and is also a partner at the lobbying firm, Burton Trent Public Affairs. How are you doing this afternoon, Edmund?

Edmund DeVeaux: Oh, I’m doing great, Tim. Thanks so much for having me.

TG Branfalt: It’s really a pleasure. You have such an interesting background that I want to get right into it, man. Tell me about your background and how did that bring you to the cannabis space?

Edmund DeVeaux: Oh, wow. Well, public policy is my first love and I have always been in public policy. In fact, when I say that, I even include my years as a commissioned officer because that’s public policy. You get your orders from Washington, ultimately. So, I’ve always been in public policy and spend a number of years in the private sector and in the public sector. So one day, I decided to join a very good friend of mine at Burton Trent Public Affairs. I walked in the door as its executive vice president.

TG Branfalt: Wow.

Edmund DeVeaux: You fast forward, and four years ago, Burton Trent accompanied New Jersey‘s legislative delegation out west to pick out cannabis legalization. We were with senators and members of our assembly in Colorado and in Nevada. When we came back to our Trenton office, we sat around the coffee table and we said, “Look, this is going to be big. We have to get in this in a big way. What are we going to do?” So we co-created the New Jersey CannaBusiness Association, the state’s first and largest trade association built on the cannabis industry.

But it’s funny, Tim, even before we all agreed to do that, we went home for the weekend. I always like to share this part because look, I’m not a real cannabis user and so people will question, “Well, why are you doing this?” And so, we went home over the weekend and I shared it with my daughters that I was thinking about doing this, shared it with my parents.

TG Branfalt: Wow.

Edmund DeVeaux: I even went to a dear friend who’s a member of the clergy. I said, “Look, if you don’t think that this is a good idea, please do share it and I’ll make my decisions accordingly.” And my good friend simply asked me one question. He says, “Well, why are you doing it?” And I replied, “Because I want it done right. I want it done right because I am a parent. I want it done right because I am an officer in my church. I want it done right because I am active in my community.” I can’t leave such serious policy up to just anybody, right? It’s the old adage, “If you don’t vote, you can’t complain.”

TG Branfalt: Yeah.

Edmund DeVeaux: So if I’m not part of this policymaking, then how can I complain about what occurs? That was the decision, Tim.

TG Branfalt: How did those very important people in your life react? What was the reaction? Did anyone say you’re out of your mind?

Edmund DeVeaux: No. No, in fact, it was funny. I got cool points with my youngest daughter. And so, it was my oldest daughter who followed me into the policy world, she said, “Wow, that sounds neat.” And my parents, they just said, “Look, we grew up at a time when it was reefer and you were smoking dope.” They said, “Look, if you think it’s a good idea, we like the fact that… Look, you’re our son. You’re pretty smart. Yeah, we trust you.” And when it came to asking my good friend in, in the clergy, he basically said, “Look, whether you know it or not, we’ve had members of our congregation who were cancer patients-“

TG Branfalt: Wow.

Edmund DeVeaux: “… who are seniors who got their medical cards.” And sure enough, I’m thinking back about them, we lost one or two of those members, but their last days were improved. Their quality of life was improved because of cannabis. So he was just like all over it. And so it made it simple. When we got back to the office and I think my partners were waiting for me to say I was in and I said it. So we were good to go. Thus, the New Jersey CannaBusiness Association.

TG Branfalt: When you say, “I wanted this to be done right.” What is done right look like to Edmund DeVeaux?

Edmund DeVeaux: When we look at policy and done right, first and foremost, for me being a man of color, I’m African-American for those folks that can’t see me and can’t tell by my voice. I’m African-American. And I do know because of family members and friends that were victims of the war on drugs, they weren’t victim of drugs, they were victims of the war on drugs. And I saw the unfair treatment of my friends and family. I saw what happened to certain people when they didn’t have a choice of cannabis versus other substances. So getting it done right clearly was expungement, long answer to expungement and reversal of the policies that not only demonized cannabis, but weaponized cannabis. And so, that’s getting it done, right.

But getting it done right means because I am a parent and because I am active in my community with members of the youth groups, I want to make sure that, number one, that they can wait until they’re 21 to make a reasonable decision about what substances they want to choose to use. And then when they choose, it’s got to be safe. You know, I remember back when it was really dangerous, and it’s only gotten more dangerous if you were buying your cannabis in the black market. You just really didn’t know what you were getting. It went the spectrum, Tim, from either it was weak and it was stemmy, right, or seeds and was no good.

TG Branfalt: Yeah.

Edmund DeVeaux: Or it went in the complete other direction and it was dangerous, right? Whether it was embalming fluid or something else. And so, I want it done right because I want it safe. So even if you’ve got it, God forbid, you should be a minor and somehow get ahold of it, at least we know it came from a regulated market.

TG Branfalt: You talked about the weaponization of cannabis laws and I got chills just because I am a white guy and we got away with a lot. So to hear it with such strong sort of terms is chilling to me. In the legislation that was approved, and we’ll talk about sort of where that process is kind of a mess right now, talk to me about the social equity provisions that are included in that legislation. What is the opinion of your association with regard to those proposed rules?

Edmund DeVeaux: Well, it’s funny, this was an evolutionary process. When Governor Murphy first took office back in 2017, he said, “First 100 days, right, we’re going to legalize cannabis in New Jersey.”

TG Branfalt: Yeah.

Edmund DeVeaux: Well, we got to 100 days and the 100 days turned into 200 days, turned into 365 and so on. In those early days, the conversation did circle around social equity, social justice, economic parity. And believe it or not, the early iterations of the legislation didn’t touch it. And it wasn’t until …

TG Branfalt: Wow.

Edmund DeVeaux: Well, it wasn’t until we got to this last iteration. I know a lot of people were unhappy because it didn’t quite go far enough. Look, I get that. But being in public policy in my whole life, you got to start somewhere. So fortunately, what did occur in the current legalization bill is that we do have a class of future applicants, minority, women, and veterans. So we got that in there. We got expungement in the bills as well. We got legalization up to six ounces. Then anything after that… And you’re talking about it’s something on par with a traffic ticket, right?

TG Branfalt: Yeah.

Edmund DeVeaux: We took away the criminality of the substance. So when we start talking about social equity, could it have gone farther? Absolutely. But are we angry that it didn’t go further? No, we’re not because we can always pick it up from there.

TG Branfalt: You are a lobbyist, and in this industry, that is a dirty term. What role do lobbyists have in the cannabis space and moreover, what role should they have?

Edmund DeVeaux: You know, that’s a great question because I do get that a lot especially with speaking to high school students who ask, “Well, what is a lobbyist?” Right? And so, you have the fun telling them, “Well, the term actually was generated because people were waiting in lobbies, right?

TG Branfalt: Yep.

Edmund DeVeaux: That’s how you stoke the conversation. But more importantly, and I know this is a bit of a digression, I asked people, I said, “Do you realize that you were a lobbyist by the age of two? You were negotiating for that cookie, right? You were negotiating getting that sweet. You were negotiating. And that’s what you did by the age of two, you are certified lobbyists.” And that’s what everybody is.

TG Branfalt: Waiting in the hallway.

Edmund DeVeaux: Waiting in the hallway. Right. Waiting in the doorway of that kitchen, right? So being a lobbyist, it’s all about getting to yes. It’s how do you get to yes. And that is the positive aspect of being a lobbyist, right? If the answer’s always no, then that creates challenges, it creates hurdles, it creates hard feelings. My opinion and many of the other good lobbyists, try to figure out how do we get to yes. Compromise is not a dirty word, and so you get to yes. And so, with the cannabis space, it has always been about getting to yes. It’s always been about how do we get to legalization. How do we get a medical program? How do you get to yes? You’re talking to legislators who many are my age and older who grew up thinking that all drugs are bad, right?

TG Branfalt: Yep.

Edmund DeVeaux: We have younger legislators and policymakers who were part of the D.A.R.E. Program, right? The Drug Awareness and Resistance Education. They were part of D.A.R.E. and D.A.R.E. said, “All drugs are bad.” right? “Don’t do it.”

TG Branfalt: Meanwhile, it made me more curious about them, right?

Edmund DeVeaux: Right. Yeah. So much for the D.A.R.E Program and the D.A.R.E. dog, right? So, you got that stuff going on and so in the lobby space, in the cannabis industry, we have been successful nationally by getting to yes. In over 30 states, we got to yes. In our medical programs, we got to yes. It makes sense, right? We’re getting to yes in terms of the federal government, right? You get the Sessions Memo which shocked everyone which was the successor to the Cole Memo, where even though the AG of the United States, the Attorney General of the United States says, “Back off of cannabis convictions. You’ve got better things to do.” So we’re getting it right. We’re getting to yes.

TG Branfalt: The legalization bill of course was basically approved by voters after lawmakers approved that bill to go to the ballot. Since then, it’s had an up and down. We expected it to be signed. And then it went down again when there was some issues with penalties for children or lack thereof. They put out another version of the bill. And then the sponsors, Scutari, who’s been a big player in this since the beginning, him and another lawmaker and I’m forgetting the name right now, but they pulled that bill. So where are we right now? How are members of your association weathering this legislative rollercoaster?

Edmund DeVeaux: Well, it’s interesting. Go back two years and everyone thought that it was never going to happen. We had members of the association who more or less were trying to figure out if they should stay as members of the association.

TG Branfalt: Interesting.

Edmund DeVeaux: They were saying, “Look, New Jersey isn’t going to do it. New York and Pennsylvania are going to beat us to it. We had requests for applications go out. We had applicants get held up in court. Things really weren’t looking good.” The fact that the legislature punted to the voters was still yet another challenging sign. But look, the voters overwhelmingly said, “Cannabis is a legitimate business. Get it up and running, get adult-use up and running.” So here we are, got the legalization bill passed through both houses, gets to the governor’s desk and the governor doesn’t sign it. Governor doesn’t sign it and he says, “Well, look, talking about not going far enough, you’re not going far enough with respect to making sure that there are penalties in place for minors because there are penalties if a minor gets caught with alcohol, there’s got to be penalties if a minor gets caught with cannabis.”

TG Branfalt: Yeah.

Edmund DeVeaux: We have to make it clear from the governor’s perspective. And he’s not wrong, that just because we use the term legalized, it’s not legalized for everybody, right?

TG Branfalt: Yeah.

Edmund DeVeaux: It’s legalized for 21 and older. In fact, we just had a recent conversation when you read the summary of the bill, the legalization bill. And the bill uses the term certain adults. Somebody asked me, “Well, what’s a certain adult? I said, “When you’re 18, you’re legally an adult.” Therefore, see, the nuances of the political language, nuances of policy, certain adults, 21 and older. The governor wanted to make it clear that legalization was not going to be this tossed around term, much like recreation, right? We’re learning not to use the term recreational because it takes away the seriousness of what you’re about to do.

Here’s the dilemma. The short of it is, governor wants something in place protecting the kids, right? It’s all about the kids, it’s all about the children. Now, the legislature says, “We’ve done enough. Sign the bill,” right? “Sign the legalization bill. We’ve done enough.” And so, now we’re at this stalemate. And they’re not wrong. They really have. They’ve worked on this thing. They fought in both houses. They fought in the Senate. They fought in the Assembly scrambling to get votes. They kicked it to the voters, gets done, and you’re still fighting to get the language. You get it through with both houses, so they’re not wrong either. So we’re at this point now where everyone is principled on this, which is kind of odd, right? But everyone is principled, and so, we’re stuck.

Now that being said, here’s a little technical put the dime in the meter, after the bill passes, after any legislation passes, if the governor doesn’t sign it within 45 days, it automatically goes to the books. It automatically becomes a law.

TG Branfalt: Yeah.

Edmund DeVeaux: But the exception to that is if the governor vetoes the legislation. So now we started the clock and we’re just a couple of weeks away from 45 days. Does the governor not sign it, not veto it and just allow it to become legislation or law? Or does he veto it? In which case, that’s really not a good look. Look, the bookies are out from who you’re betting on.

TG Branfalt: In New Jersey to override a veto, does it require 2/3?

Edmund DeVeaux: Yes.

TG Branfalt: Do you know if the appetite is there for 2/3 of lawmakers?

Edmund DeVeaux: You know what? Let me rethink that. Because in New Jersey, it’s kind of interesting. The governor can veto… Yeah, I believe it is 2/3 as opposed to a simple majority.

TG Branfalt: Yeah.

Edmund DeVeaux: Right, to change it. I think the willingness will be there. I think they could. I think they would.

TG Branfalt: Okay. In a previous interview, you said that the New Jersey CannaBusiness Association will work to support an industry without “artificial barriers”. I found that to be a very interesting term that I hadn’t really heard from anybody before. Can you explain what you mean by the term artificial barriers and what the association is advocating with regard to these barriers?

Edmund DeVeaux: The New Jersey CannaBusiness Association is, I’ve dubbed it the Cannabis Chamber of Commerce. We represent all of the businesses, not just the people who touch the flower, but all of the ancillary businesses as well. As the Cannabis Chamber of Commerce, what we have to make sure is that everyone has an opportunity to be part of this responsible, sustainable, and profitable industry. When we talk about artificial barriers, you look at the application processes where just currently under the medical program, it costs thousands, tens if not hundreds of thousands of dollars to muster an application based on the way things are now. It doesn’t need to be that way. You’re stifling the industry. You’re clearly stifling communities of color and disadvantaged communities when you create these financial barriers that just don’t need to exist.

Look at Oklahoma. Oklahoma, you apply for a license, it costs you a couple of thousand dollars and you get a license, of course, after background checks. But why can’t New Jersey be that way, right? Why can’t we just say a cannabis operation is like a CVS. You don’t put CVS through the ringer like this, right? You don’t put any food chain through the ringer. Stop creating these hurdles that are just unnecessary. We are missing out on the possible tax revenue. We’re missing out on regenerating neighborhoods. We’re missing out on doing all of these great things because we think we need to do these financial hoops and financial hurdles. Those are artificial barriers. They’re barriers to entry into the industry.

TG Branfalt: Keeping on the subject of businesses, how important is keeping the industry in the hands of small businesses or putting cannabusinesses in the hands of smaller entrepreneurs specifically in New Jersey? How will the New Jersey CannaBusiness Association work to this end? I think that’s what a lot of people worry about when we’re talking about lobbyists and we’re talking that it’s only the big companies that can afford the big guys to go in there and get that yes. What’s your take on that?

Edmund DeVeaux: No, that’s great. In fact, my predecessor, Scott Rudder, he was also my partner at Burton Trent. Scott came up with the phrase, “Main Street before Wall Street,” right? We definitely have to support local business. We have to make sure that the person living in a community has the opportunity to bring that investment to their community. They have to be able to keep that dollar circulating in that community, right? You can’t have a dollar or $5 come into the community and then exit that community in a short period of time because a larger out-of-state operator is sending its profits back to Illinois, or back to Nevada, or back to Colorado. It does not benefit New Jersey. It doesn’t benefit the neighborhoods that we’re trying to positively effect.

What we really need to do as an association and we’ve taken this stance, we’re talking about, number one, lowering that financial bar to entry. Lower it, get people involved. Number two, Main Street before Wall Street — make sure that if I’m in a neighborhood, I can invest in my neighborhood, that I can get to the storefront and I can rent that storefront or buy it and raise my business, stand up a business, especially cannabis. Why not? And so, when you look at the landscape of New Jersey and you see vacant strip malls now.

TG Branfalt: Yeah.

Edmund DeVeaux: The large shopping malls are going away. There is a need to create opportunity locally and make sure that we benefit the local participants before we start benefiting the out-of-state participants.

TG Branfalt: You now gave me this vision of strip malls full of dispensaries or indoor malls full of dispensaries in New Jersey. That would be really exciting. Is it surprising to you that New Jersey beat out more liberal Eastern states to the punch on this? You had said earlier such as New York, right? We’ve had Cuomo for decades now it seems. Connecticut, which has had democratic leadership since 2010. And I mean, New Jersey has only had one Republican governor since 2002, but it was Chris Christie who hates cannabis.

Edmund DeVeaux: That’s right.

TG Branfalt: What was it like for you to watch, dude, small New Jersey beat out their big liberal counterparts?

Edmund DeVeaux: You know, Tim, I use the phrase, “We’re the tortoise that beat the hare.” People looked at us and we were the last… No one was betting on us to pull this off, right?

TG Branfalt: Yeah.

Edmund DeVeaux: It was a perfect storm. You had New York and the fact that the governor-

TG Branfalt: They tried three times in a row?

Edmund DeVeaux: I mean, look, I was involved with discussions in New York. I appeared on panels in New York, and I’m sitting there next to governor’s aides. And they’re like, “Look, it’s in the budget bill. It’s going to happen in April. It’s going to happen in April.” Never happened. It never happened. At least in New Jersey, we kept plugging along like the tortoise, right? Sometimes, we got tucked in our shell, but by and large, we just kept plugging along. And so when we kicked it over to the voters, when the legislature did that, what better way to take your chances, right, if you can’t get the votes.

And so, all of the work that was going into the polling, the pre polling was telling us, “The voters are for this.” And so, even if you were opposed to cannabis being legalized, the voters were telling you through all of the polling data, conservative communities, liberal communities. And sure enough, cannabis legalization passed in every single town. Passed in every town.

TG Branfalt: In every town?

Edmund DeVeaux: Every town. Every town voted yes by majority.

TG Branfalt: Wow.

Edmund DeVeaux: And so, when you look at that, New Jersey beat New York, beats Pennsylvania to the punch simply because we just kept going at it.

TG Branfalt: I mean, you guys are fortunate to have a ballot initiative process. I mean, in order for a ballot initiative to happen in New York, it has to be a constitutional amendment. It’s impossible, basically.

What is your vision and that of your organization for the New Jersey cannabis industry? You get the headstart on New York. You’re definitely going to get a lot of downstate New Yorkers coming over the same way that our sub-staters go to Maine and Massachusetts. What does it look like to you?

Edmund DeVeaux: Here’s what I think. I never stopped thinking, of course, being a New Jersey executive, right? I worked for multinational corporations and I totally understand, well, I try to understand business, right? We are a regional economy, New York, New Jersey, Pennsylvania.

TG Branfalt: Yep.

Edmund DeVeaux: Whether you like it or not, everything is based on what happens in our region. Our hub, our Tri-state area is what drives the nation. And so, you can’t just think in a vacuum, Tim. This has got to be a, “Well, what happens when New York gets it across the finish line? What happens when?” So from a New Jersey standpoint, the things that I think we do is we definitely have to be careful with the tax issue. Don’t overtax the product. You have to be creative with respect to standing up the industry, making sure that groups like my membership, like the association’s membership, everyone gets a shot. Whether you’re in IT, whether you’re in engineering, architecture, whether you’re in real estate, everybody’s got to get a shot.

And so you create the opportunities for everyone to get a piece because all of those companies in New Jersey will probably have some footing in New York. They’ll have some footing in Pennsylvania. And you know darn well that New York companies are looking and they’re trying to figure out ways to get in. It’s really creating a platform, making sure that the scaffolding is there when you’re building this thing so that all of these companies, not just the people who touch the flower, but the ancillary businesses are getting a shot at growing their businesses. And you do it from a regional perspective, right? Knowing that you’ve got to be competitive.

TG Branfalt: In your role with the cannabis association, are you seeing a lot of sort of inquiry from more traditional, it could be ancillary companies, coming to you and saying, “Hey, what could I do here?” Are you seeing a lot of that?

Edmund DeVeaux: Mm-hmm (affirmative). We are. We’ve gotten calls from people from out of state who were looking and they have said, “Look, I want to do cultivation. I want to do manufacturing. I want to do retail.” And then I do get the calls, “I’m in security. I’ve got a security firm. I do delivery. I’ve got all of these great business models.” And so yeah, they are here and they are joining the association, which is really neat. We are getting this interest. As the Cannabis Chamber of Commerce, it’s making it great, because we actually get to talk business. I would say up until November of last year, the social justice discussion, the economic parody discussion and the commerce discussions were all being done mutually exclusive. People were either talking about social justice or they were talking about commerce.

Thank goodness, as of November 3rd, 2020, these conversations are now inclusive. So now, I get the benefit of talking about commerce and social justice and economic parody, not or. And so, when all of these companies are calling and reaching out trying to figure out if New Jersey, not if, but how they do New Jersey, I get to have that conversation. “Are you a Black-owned business or a woman-owned business? If you’re a veteran, let’s talk about our history,” right? And so, we get to talk about that. Also, from a policy, from a lobbying standpoint, how do I create the framework? How do I get to yes so that these businesses can get in, get stood up and be profitable.

TG Branfalt: I love your energy, man. You’re just smiling the entire time you’re talking. It might seem some sort of like benign to a lot of people, but to me, who does a lot of these conversations, I mean, it’s really something special to see the joy in your face. You can tell you’re very excited about building this industry and working towards these goals that you’ve set throughout. When somebody comes to you from the industry or from outside the industry and says, “Edmund, how can I be successful in the cannabis space?” What’s your advice for those people?

Edmund DeVeaux: Number one, be patient because it is a brand new industry. I do smile because this is just an amazing time. Tim, we’re making history. When was the last time this country saw an industry from the ground up? It’s been decades. And so, here we are. So number one, be patient, because there’s going to be several iterations as to how we create the industry. Patience is number one. Number two, and I do love this about being a lobbyist and having friends that are in the lobbying industry and business consultancy space. It’s exciting because create teams, create networks, be able to pivot. We’re talking cannabis today, tomorrow, we might be talking hemp.

TG Branfalt: Yeah.

Edmund DeVeaux: Let’s be able to pivot, create these relationships. Because look, as a lobbyist, I love relationships, right?

TG Branfalt: That’s how it goes, but yes.

Edmund DeVeaux: Especially ones you don’t have to pay for. So yeah, be patient, build your networks, build your business wisely and be flexible.

TG Branfalt: This has been really enlightening and fun conversation, man. I really appreciate you taking the time to be on the show. I was fortunate with having a great conversation with you prior to this. It’s really great to meet you and to have you as a guest. Where can people find out more about the New Jersey CannaBusiness Association and more about you?

Edmund DeVeaux: Oh, well, the website is www.newjerseycannabusiness. You spell out New Jersey, and cannabusiness is C-A-N-N-A, business, newjerseycannabusiness.com. My email is ed — ed@newjerseycannabusiness.com. Please, feel free to reach out, check out our website. In fact, we’re going to be redoing it. I got an intern. I got a college intern. I’m going to let her redo the website. It’s going to be cool.

TG Branfalt: That’s great for the resume. I’m going to send some of my students your way. They could be your communications interns. I know a couple.

Edmund DeVeaux: Yes, feel free.

TG Branfalt: That’s Edmund DeVeaux. He’s the president of the New Jersey CannaBusiness Association. He previously served as its policy director and worked in the State Treasury Department. He was also a commissioned officer in the US Army and is a partner at lobbying firm, Burton Trent Public Affairs. Edmund DeVeaux, thank you so much for being on the show. I look forward to seeing what role you play, which probably going to be an out-sized one, in building New Jersey’s industry. Really appreciate it.

Edmund DeVeaux: Tim, thank you for having me. A pleasure.

TG Branfalt: You can find more episodes of the Ganjapreneur.com podcast in the podcast section of Ganjapreneur.com on Spotify and in the Apple iTunes store. On the Ganjapreneur.com website, you’ll find the latest cannabis news and cannabis jobs updated daily along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google play. This episode was engineered by Trim Media House. I’ve been your host, TG Branfalt.

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FDA Moves to Ban Flavored Cigars and Menthol Cigarettes

5/05/2021

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The Food and Drug Administration announced last week plans to ban flavored tobacco products, including menthol cigarettes and flavored cigars, which would likely include some products used for rolling cannabis, including Backwoods and Bluntville cigars.

The agency in 2009 banned flavored cigarettes and rolling papers but that order included provisions allowing flavored rolling papers to remain on store shelves for use with non-tobacco herbal blends.

FDA Commissioner Dr. Janet Woodcock said banning flavored cigars and menthol cigarettes – the last remaining flavor – “will help save lives.”

“With these actions, the FDA will help significantly reduce youth initiation, increase the chances of smoking cessation among current smokers, and address health disparities experienced by communities of color, low-income populations, and LGBTQ+ individuals, all of whom are far more likely to use these tobacco products.” – Woodcock in a statement

Maritza Perez, director of national affairs for the Drug Policy Alliance, said in an interview with Medium that the criminalization of menthol cigarettes “really scares” her, citing fears that “it will give law enforcement another excuse to harass, surveil and police people of color.”

“This will have tremendous racial disparities,” she said in the report.

Columbia University’s Daniel Giovenco, a behavioral scientist, acknowledged Perez’s concerns but said those issues must be weighed “against the tens of thousands of menthol smokers who die or get sick every year.”

A 2018 study by Canadian researchers suggests that a menthol cigarette ban in the U.S. would lead an additional 923,000 smokers to quit, including 230,000 African Americans in the first 13 to 17 months after the ban takes effect.

The FDA notice makes no mention of flavored tobacco wraps that are not, technically, cigars. The agency said if the ban is implemented, the FDA’s enforcement “will only address manufacturers, distributors, wholesalers, importers and retailers.”

“The FDA cannot and will not enforce against individual consumer possession or use of menthol cigarettes or any tobacco product,” it said.

The order does not include tobacco-like, flavored hemp wraps.

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Washington Gov. Signs Cannabis Social Equity Bill

5/05/2021

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Washington Gov. Jay Inslee (D) signed a bill on Monday to help more people of color open cannabis businesses in the state, King 5 News reports.

HB 1443 was requested by the state’s Social Equity in Cannabis Task Force (SECTF) and will offer grant funding and expert advice for individuals who have been convicted of a cannabis crime and/or live in an area disproportionately impacted by cannabis prohibition.

According to the bill report, the Washington State Liquor and Cannabis Board will draw on a pool of licenses subject to forfeiture, revocation, or cancellation. Licenses that were never issued — but when issued will not exceed the license limit prior to January 2020 — will be up for grabs for qualifying social equity applicants. Additionally, the bill extends the final reporting dates of the Social Equity in Cannabis Task Force until December 9, 2022. The program is set to expire on July 1, 2028.

“It’s a down payment on what the state of Washington owes its Black residents. We’re doing things to make those wrongs, right.” — Task Force Chair Paula Sardinas, via King 5 News

In Washington state, WSLCB data found that 82% of cannabis licensees who identified their race indicated they were a “non-minority;” that same data revealed that 7% of cannabis business owners identified as Asian, 4% as multiracial, 3% as Black, and only 2% said they were Hispanic

Established in 2020, the SECTF’s work was initially delayed due to the COVID-19 pandemic. After three meetings in the fall of 2020, the task force is holding sub-committee meetings to hear from the community and industry stakeholders on topics like the definition of “disproportionately affected areas” and licensing.

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New Mexico Cannabis Company Loses License Following Extraction-Related Fire

5/05/2021

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The New Mexico Department of Health has revoked the license of New MexiCann Natural Medicine following an accident at their facility last year that seriously injured two workers, the Santa Fe New Mexican reports. Health Secretary Tracie Collins also suspended the manufacturer’s ability to produce cannabis.

In February, New Mexicann owner Carlos Gonzalez was charged with two felony counts of arson related to the incident, the report says. Gonzalez is accused of switching out a hot plate used in the extraction process with one that violates manufacturing standards, according to a criminal complaint outlined by the New Mexican.

Following an investigation, it was discovered that a mixture of ethanol and cannabis oil had spilled onto the hot plate which led to the fire. It was the second incident at the facility to cause injuries over five years. Officials also suggested that New Mexicann didn’t train staff on how to properly use the equipment. The Health Department had previously suspended the company’s license in relation to the fire.

Josh Alderete, one of the victims in the fire, in the criminal complaint against his former boss, said he was asked to take over the extraction process due to an absent co-worker and said he warned Gonzales about changing the hot plates, according to a New Mexican report. He  indicated the that plate was set at 500 degrees, the highest setting and against manufacturing standards for the extraction process.

“Did we not learn from the last explosion?” Alderete asked Gonzalez, according to the complaint outlined by the New Mexicann, referring to the previous accident. “We cannot be skipping steps, this causes accidents.”

“If it weighs, it pays,” Gonzalez allegedly responded, according to the report.

The suspension order for the company’s medical cannabis production takes effect May 14.

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ISA Corp: Real-Time Cannabis Industry Market Intelligence

5/04/2021

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Ongoing feedback from your customers and target audience is key to understanding the cannabis consumer and, ultimately, the cannabis industry. ISA Corp has been a leader in market research, data, and insights since 1982. In 2016, ISA began receiving numerous requests from clients looking for help in understanding this emerging market. Because of cannabis’ legal status, many traditional research companies refused to touch the topic. With a decades-long history of taking on projects others shy away from, ISA saw an opportunity to partner with upcoming brands and provide much-needed insights to a blossoming industry.

Initially spearheaded by ISA President Jacqueline Rosales and Adriana Hemans, VP of Demand, the cannabis division quickly grew and has absorbed even more team members. Their team prefers diverse hires and seeks out team members who are both experts in research and experts in cannabis. Their inclusive attitude creates a company culture reliant on teamwork, where everyone pitches in together to accomplish their goals. With the goal of helping cannabis brands accelerate their growth by building more customer-centric businesses, ISA has created cannabis-specific tools like The Green Time and the CANNApinion poll.

ISA Corp is approaching their 40th anniversary as a market research firm. They’ve developed an extensive data pool in that time, which allows for an easier build-out of their cannabis-focused research tools. With decades of expertise, they can create hyper-specific campaigns tailored to client needs — whether the client even knows what they need yet or not. They can offer the best types of research for their client’s goals and can conduct that research in-house rather than consulting outside agencies.

“We specialize in quick-turn directional insights, meaning we shine and bring something different to the table in that we help you make decisions that need to be made quickly with directional input on which way to go,” said VP of Demand Adriana Hemans.

Whether a client is looking to launch a new brand or expand into new markets, the ISA Corp provides fast insight into which business decisions might prove most fruitful. They utilize all forms of data collection: online and in-person surveys, focus groups, and insight communities to gauge consumer interest, test concepts, evaluate marketing, branding, and advertising, and assist with every stage of product development. Access to consumers is the core of ISA’s offering. The Green Time, the world’s first cannabis research community, offers quick and targeted access to cannabis consumers across the U.S. and Canada. Community members are thoroughly vetted with thorough security checks to ensure participants are over 21 years old and other third-party verification so analysts can be confident in the data they receive.

The Green Time is also segmented to reach specific types of consumers. The Green Time cannabis research panel can be segmented to fit hyper-specific data sets, whether you’re looking for people who visit the dispensary three times per week or who use cannabis specifically for sleep. And they continue to add to this panel every week, creating detailed profiles for each member of The Green Time.

Market research analysis can be an invaluable tool for any industry.

For companies with limited budgets, ISA Corp offers the CANNApinion poll survey, an ongoing deep dive into the lives of consumers, that launches every two weeks.

“People can just jump in, send us a few questions that they’re interested in learning more about, we add those questions into our poll and we can give you the data cut with the demographic information,” Hemans told Ganjapreneur. “It’s a great way to get a fast, quick pulse on how consumers are feeling about products or what’s rising in popularity or how things are changing.”

During the first COVID-19 lockdown, the team used this poll to learn more about consumption habits amidst stay-at-home orders. The responses illuminated how buyer choices had changed amid a pulmonary virus outbreak. In a more specific poll, they reached out to professionals to understand how their consumption patterns had changed. The CANNApinion poll is an out-of-the-box solution to get a few answers in this emerging market, even if a client’s research budget hasn’t yet caught up to their need. No matter their goals or budget, the ISA Corp has data pools and resources to fit any client.

Every part of the cannabis ecosystem can benefit from investing in reliable market research. Legal firms, media, dispensary chains, and brands in any stage of product development have trusted ISA for quick-turn directional observations. Using The Green Time and the cannabis research panel, a brand can learn how to best launch a new product, which market would be best to enter, or even if their advertising is effective. Both plant-touching and ancillary companies will find this data useful as they look to grow and understand more about their consumers and clients.

The cannabis division at ISA excels in online survey research and has been working in the industry since 2016. They have managed to jump some industry-specific hurdles and have a firm grasp on the requirements for market compliance — additionally, their in-house legal team has eyes on everything they do to ensure legality and compliance. ISA has also partnered with a UCLA law team who created an 80-page memorandum of recommendations based on an analysis of each state. With these tools, the team better understands which direction to take their research based on compliance requirements and consumer activity in each market.

“All of these pieces of the picture are things that we can incorporate into resource engagement and our program that we create for people so that they won’t be wasting time, money, or resources talking to people that their brand is not relevant to,” Hemans said. “It makes it faster and easier to connect with the right audience.”

Moving forward, the ISA Corp cannabis leadership team will continue to define The Green Time and build out more B2B-focused profiles as the workforce grows. Hemans said she has also been speaking with some dispensary partners in hopes of doing some in-store advertising. While they currently have no trouble reaching consumers, it’d be a fruitful opportunity to meet cannabis consumers where they are actually making their decisions.

This year, the ISA team will grow The Green Time to the largest possible pool of consumers with the intention of dividing this pool into subgroups large enough to get projectable data that can influence big business decisions. And, as they grow, the ISA Corp will continue to center projects that provide a deeper understanding of the cannabis consumer and industry so as to inform real-time business decisions for their clients.

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U.S. Supreme Court Declines to Hear 280E Challenge Over Late Paperwork

5/04/2021

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The U.S. Supreme Court has declined to hear an appeal case by California cannabis companies that sought to challenge their tax bills after filing their petitions with the U.S. Tax Court one day after the deadline, Law360 reports. Organic Cannabis Foundation LLC and Northern California Small Business Assistants Inc are fighting a $1.9 million tax bill — the result of filing under Section 280E, which prohibits tax deductions for companies trafficking in a controlled substance.

Cannabis companies throughout the U.S. must file under 280E because cannabis remains federally illegal.

The companies – both owned by Dona Ruth Frank – argued that under the precedent set by a Supreme Court decision in 2015, statutory deadlines are presumptively non-jurisdictional and therefore subject to equitable tolling. The companies’ case challenged the constitutionality of the 280E provisions, the report says.

The Ninth Circuit had ruled in June that the Tax Court was correct in dismissing the case based on the lack of jurisdiction.

In a separate case, the Tax Court ruled in February that San Jose Wellness, a subsidiary of Harborside, was liable for $4.2 million in taxes because federal law prohibits it from claiming depreciation and charitable contribution deductions due to 280E. In that case, Judge Emin Toro said that the “requirements of Section 280E are clear.”

Last month, the U.S. Circuit Court of Appeals rejected the 280E appeal from Oakland-based Patients Mutual Assistance Collective Corp – or Harborside Health Center – ruling that federal cannabis prohibition prevents legal cannabusiness from excluding or deducting taxable income as business expenses.

Last year, the Supreme Court declined to hear the case challenging the constitutionality of federal cannabis prohibition and the Drug Enforcement Agency’s Schedule I classification.

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New York City Taxi Commission Stops Drug Testing for Cannabis

5/04/2021

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The New York City Taxi & Limousine Commission (TLC) will no longer test drivers for cannabis following statewide legalization enacted in March, according to a memo obtained and outlined by the New York Post.

TLC licenses drivers for the city’s livery vehicles, along with Uber and Lyft drivers. According to the commission’s website, the agency has over 200,000 licensees.

In an interview with the Post, Fernando Mateo, founder and spokesman of the New York State Federation of Taxi Drivers, called the move “a big mistake” and “irresponsible.”

“If they’re not going to be testing for marijuana, that means drivers will have the opportunity to smoke weed and drive. I don’t want my kids in a car with a guy that smokes weed, and is allowed to smoke weed regularly, and not get tested. We have to draw the line somewhere.” – Mateo to the Post

New York’s legalization law includes language allowing stoned drivers to be charged with driving while intoxicated. In the memo, TLC said that “while the use of marijuana is now legal for adults, it is still the law that TLC-licensed Drivers must be sober when they operate a vehicle.” The agency also noted that testing for other illegal drugs would remain unchanged.

In states that have legalized cannabis for adult-use, employment drug testing changes sometimes follow either statewide or through changes at private companies. In Maine, Bath Iron Works and Maine Health – the state’s largest private employer – indicated they would no longer test employees for cannabis use as part of their employment practices.

The National Football League – which is headquartered in New York City – announced in March that it would shorten its window for cannabis testing and would no longer suspend players for a positive cannabis test. Thirteen of the league’s 32 teams are from states that have legalized cannabis.

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Swiss Parliamentary Committee Votes to Legalize Cannabis

5/04/2021

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Switzerland came one step closer to adult-use cannabis legalization after lawmakers in the Health Commission of Switzerland’s National Council, the country’s lower legislative body, voted 13-11 on Friday in favor of a plan that would legalize cannabis access for adults, according to a Zürichsee-Zeitung report.

The parliamentary initiative was proposed by National Council Member Heinz Siegenthaler and seeks to expand the country’s current adult-use cannabis pilot program — which was approved last September and legalized access for some 5,000 registered study participants — to include all adults. Under that program, distributed cannabis must be organic and produced in Switzerland; additionally, THC content is capped at 20% for the pilot program’s cannabis products and the products must come in child-resistant packaging with appropriate safety warnings and accurate cannabinoid content displayed on the label.

When presenting his proposal, Siegenthaler argued that federal cannabis prohibition has clearly failed because the unregulated marketplace is flourishing and consumption rates are at an all-time high. According to estimates, some 500,000 Swiss regularly consume cannabis products — or about 6% of the country’s eight million residents.

If the proposal is fully approved by the National Council, it would move next to the Council of States, the upper body of Switzerland’s Federal Assembly.

Switzerland decriminalized minor cannabis possession (up to 10 grams) in 2012 although possession is still penalized by a flat civil fine of 100 Swiss francs. Cannabis containing just 1% or less THC, however, has been legal for manufacturing and distribution in Switzerland since 2011.

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Massachusetts Opens Up Hemp & Cannabis Cultivation on Protected Farmlands

5/04/2021

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The Massachusetts Department of Agricultural Resources (MDAR) last week released guidance under a 2020 plan to allow cannabis and hemp cultivation on land belonging to the state Agricultural Preservation Restriction (APR) and Farm Viability Enhancement programs. The move could open up more than 73,000 acres of protected farmland to potential industry operations.

The APR program, which dates back to 1979, offers to pay farmland owners the difference between fair market value and the agricultural value of their farms in exchange for permanent deed restrictions in order to preserve farmland for agricultural use in the future, according to the agency website. The Farm Viability Enhancement Program provides business and technical assistance to established farmers through grant funding in exchange for signing an agricultural covenant on the property to keep it for agricultural use, according to the state website.

Hemp and cannabis production will be allowed on lands in the programs, although cannabis may not be grown on land that is federally funded as cannabis remains federally outlawed. MDAR noted to the Worchester Business Journal that all of the recently acquired APRs were obtained through federal financing.

In the guidance, the agency said the updated rules were sparked by “concerns” from landholders who sought to “diversify land use and provide new income sources.”

“After reviewing these concerns and evaluating the evolving state of the law as it relates to the legalization of medical and adult use marijuana in Massachusetts and cultivation of hemp in the United States, the Department has been reviewing its policies related to hemp and marijuana and evaluating whether the Department may recognize such activities as horticultural uses in a manner consistent with the laws and intent of the APR Program.” – Massachusetts Department of Agricultural Resources, “Hemp and Marijuana Production on APR and Farm Viability Protected Lands, Apr. 28, 2021”

Other hurdles remain for farmers, including an MDAR restriction on hemp-derived CBD products in Massachusetts‘ licensed cannabis stores. MDAR is presently working with the Massachusetts Cannabis Control Commission to address the issue, possibly opening the profitable market up to help farmers.

According to Vote Hemp, there were 202 acres of hemp grown in Massachusetts last year, up from just 21 in 2019.

Lukas Barfield contributed to the reporting in this article.

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Tilray & Aphria Merge to Become Largest Cannabis Corporation

5/03/2021

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Canadian cannabis firms Tilray and Aphria have closed on the previously announced business combination with the new company operating as Tilray. The combined company – lauded at the announcement of the deal last year as the world’s largest cannabis company based on pro forma revenue – has a market capitalization of about $8.2 billion based on April 30 close stock prices.

Shares of the combined company will commence trading on the Toronto Stock Exchange and Nasdaq Global Select Exchange under the “TLRY” symbol on Wednesday.

Irwin D. Simon, Aphria’s chairman and CEO, will lead the combined firm. Tilray’s current director and former CEO Brandon Kennedy will serve on the combined company’s board of directors.

“Our focus now turns to execution on our highest return priorities including business integration and accelerating our global growth strategy. Covid-19 related lockdowns have presented unique challenges across Canadian and German markets. As these markets begin to re-open, Tilray is poised to strike and transform the industry with our highly scalable operational footprint, a curated portfolio of diverse medical and adult-use cannabis brands and products, a multi-continent distribution network, and a robust capital structure to fund our global expansion strategy and deliver sustained profitability and long-term value for our stakeholders.” – Simon in a press release

Under the terms of the agreement, Aphria shareholders received 0.8381 shares of Tilray for each Aphria common share.

The company said it expects to see an estimated $81 million of annual pre-tax cost synergies within 18 months and plans to achieve cost synergies in the areas of cultivation and production, cannabis and product purchasing, sales and marketing, and corporate expenses.

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Maryland Police Can No Longer ‘Stop and Frisk’ Based on Cannabis Odor

5/03/2021

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A Maryland appeals court has ruled that law enforcement officers in the state can no longer stop people based on the odor of cannabis alone and that police need “reasonable suspicion” that a crime is being committed before they can even detain someone, according to a USA Today report. The court’s decision hinged on the fact that possession of small amounts of cannabis is decriminalized in the state.

“Because an officer cannot tell by the smell of marijuana alone that a person is involved in criminal activity, we hold that the odor of marijuana, by itself, does not provide reasonable suspicion to conduct an investigatory stop.” –  Judge Kathryn Grill Graeff, in the Appeals Court opinion, via USA Today

The appeal came in the case of a case in Prince George’s County, during which an officer responded about a group of males hanging out in an apartment complex and when the officer arrived, he smelled a “strong odor” of cannabis and patted down members of the group, ultimately recovering a handgun.

Michele Hall, who defended the then-juvenile in court, successfully argued that “the smell of marijuana is not enough to stop an individual on the street” and claimed that the odor of cannabis is often used as a pretext to justify further investigation, particularly in communities of color.

The Appeals Court in 2019 ruled that law enforcement officers in the state cannot make an arrest based on the odor of cannabis alone but the ruling didn’t go so far as to prevent officers from searching a vehicle based on the odor of cannabis. State case law, the judges determined, dictates there is a reduced expectation of privacy in a motor vehicle and the court’s opinion did not challenge that law.

A subsequent decision by the court last year determined that police could use cannabis odor as justification for a vehicle search but that they cannot search anyone in the vehicle unless they find evidence of a crime which does not include finding a small amount of cannabis.

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Washington Drug Possession Reforms Await Gov.’s Signature

5/03/2021

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The Washington State Legislature delivered a bill to Gov. Jay Inslee that will overhaul the state’s drug possession laws and provide more resources for treatment, according to King 5 News. SB 5476 — which the governor is expected to sign in the coming days — was crafted in response to the State Supreme Court throwing out felony drug possession statutes in February.

Under the bill, simple drug possession would be a gross misdemeanor rather than a felony, with the option for prosecutors to divert the first two offenses. The burden of creating treatment options will fall largely on local governments and the misdemeanor penalty will sunset in two years, replaced by civil infractions. According to the report, $88.5 million will be earmarked for treatment options, mental health services, and “stabilization” for Washingtonians experiencing homelessness. Additionally, the bill instructs courts to hire “commissioners” to help sort out the issues caused by the Supreme Court’s decision.

In a statement after the bill passed the House, primary sponsor Sen. Manka Dhingra (D) said:

“This bill is not an ideal solution, but it is a thoughtful step forward. It achieves three important goals. First, it establishes a statewide approach to addressing drug possession. Second, it prioritizes and funds treatment for substance use disorder. And third, it provides us the time to come up with a public health approach to substance use disorder that relies on best practices and access to treatment that takes into account equity.” — Sen. Manka Dhingra via press release

However, many are skeptical of the new law including former prosecutor Bob Scales, who told King 5 he believes lowering the penalties for drug possession will not “incentivize” people to get treatment.

“And realistically,” he said, “because the prosecutor has to divert the first two cases, it will essentially be more administrative work. But I don’t think it will have any positive impact on public health or public safety.”

Washington‘s new law does not go as far as Oregon‘s successful November voter initiative that lowered simple drug possession to just a civil infraction or $100 fine.

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GW Pharmaceuticals Receives Prestigious Queen’s Award for Innovation

5/03/2021

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London, England’s GW Pharmaceuticals, the makers of the cannabis-derived anti-seizure medication Epidiolex, has won the Queen’s Award for Enterprise 2021 in the Innovation category. It’s the first medical cannabis company to receive the award, which is considered the most prestigious for U.K. businesses.

Dr. Geoffrey W Guy, GW founder and chairman, said the company was “honored” to receive the award and that when he and co-founder Dr. Brian Whittle founded the company 23 years ago, its mission “was to improve the lives of seriously ill patients by unlocking the potential of the cannabis plant through rigorous scientific investigations and extensive clinical trials in order to obtain regulatory approval for such medicines to benefit patients.”

GW CEO Justin Gover said over the two decades the company “established a world-leading position in cannabinoid science and brought breakthrough medicines to patients in a new frontier of medicine.”

“We are immensely proud to have that work and dedication recognized by the prestigious Queen’s Awards for Enterprise. Our continued commitment to research and development has resulted in the treatment of thousands of patients with our medicines, and the prospect of helping countless more families through our robust pipeline of early- and late-stage product candidates.” – Gover in a press release

The company said it has invested more than £1.3 billion (USD$1.8 billion) “in the research, development and infrastructure needed to bring novel, innovative medicines to patients.”

In the announcement in the London Gazette, the company was described as “harnessing cannabinoid science to create innovative, regulatory approved, world-first cannabis-based medicines to improve lives.” The Queen’s Awards are in their 55th year.

In January, GW said that in 2020, Epidiolex sales increased more than 70%. It is also conducting trials on a multiple sclerosis drug in the U.S., Nabiximols, and it hopes to achieve data from at least one of the trials this year.

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Bill to Legalize Psilocybin Therapy Introduced in Maine

4/30/2021

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A bill filed in Maine would legalize psilocybin mushroom therapy without a medical diagnosis, and allow adults 21-and-older to legally buy the psychedelic and use it under the supervision of a certified psilocybin service practitioner, according to the Dales Report.

The measure would include a 15% tax on retail sales of psilocybin products and allow manufacturing in a vertically-integrated model. The measure directs the state Department of Health and Human Services to establish guidelines for psilocybin treatment, such as personal possession restrictions, product testing, and standards for psilocybin care providers.

The bill says that those recommendations should be designed “to otherwise make this Act as consistent as possible in substance to the laws governing psilocybin in Oregon,” the report says. During the November 2020 election, Oregon voters approved a measure to legalize psilocybin therapy and Washington, D.C. voters moved to decriminalize all psychedelic plants, representing a watershed moment for psychedelic drug reforms.

In February, New Jersey Gov. Phil Murphy signed legislation to reduce the penalties for the possession of psilocybin mushrooms from a third-degree crime to a disorderly person offense. Lawmakers in Missouri and California are also considering bills to add psychedelics to the state’s Right to Try law, and decriminalize the substances, respectively.

The Maine measure was referred to the state legislature’s Joint Health and Human Services Committee.

A separate bill already filed in the state would decriminalize all currently illegal drugs, subjecting offenders to a $100 civil fine rather than jail time, according to the Dales Report. The fine could be waived if a person were to undergo a health assessment.

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