Massachusetts Cannabis Retailers Can Now Sell Hemp Products

5/25/2021

by

Licensed cannabis retailers in Massachusetts can now sell most consumer-ready hemp-derived products following new guidance from the Cannabis Control Commission, JD Supra reports. Under the rules, the products must be displayed in a dedicated section of the store.

The state’s cannabis retailers can now sell hemp seeds, oils, powders, proteins, hemp-derived clothing, and items made from hemp fiber, hemp building materials, and non-food CBD products that do not make any health claims or marketed as a dietary supplement unless it has received approval from the U.S. Food and Drug Administration.

The retailers cannot sell any food product with CBD, including animal feed, unprocessed hemp flower, or any CBD products that make therapeutic claims or marketed as a dietary supplement, unless FDA-approved.

Medical cannabis dispensaries are not allowed to sell the products, the guidance clarifies.

The products must be obtained from a licensed Massachusetts hemp processor and all products must carry a label including the language:

“This product was produced, packaged, and labeled by a Massachusetts hemp processor licensed by the Massachusetts Department of Agricultural Resources (MDAR). It is not regulated by the Massachusetts Cannabis Control Commission and the product may not be consistent with the requirements of M.G.L. c. 94G or 935 CMR 500.000. Consumers that have questions or concerns about this product are encouraged to contact the manufacturer, MDAR, or the appropriate state or federal agencies.”

Retailers are not required to track the products through the state’s seed-to-sale system, but a record of sale should be maintained, the report says.

The MDAR has also published a Q&A site for retailers interested in selling the newly-approved products.

End

Texas Senate Votes to Study Therapeutic Potential of Psychedelics

5/25/2021

by

The Texas Senate voted over the weekend to study the effectiveness of certain psychedelics in treating veterans with PTSD, according to Marijuana Moment.

Having originated in the Texas House, HB 1802 was amended and passed by the Senate in a 25-5 vote on Sunday and now heads back to the House for final approval. Senate lawmakers also approved a House bill to reduce penalties for the possession of cannabis concentrates.

If passed and ultimately signed into law by the governor, the psychedelics legislation would require the state to partner with Baylor College of Medicine and a military-focused treatment center to study the effectiveness and risks of psilocybin, MDMA, and ketamine in treating veterans with PTSD, according to the report.

Furthermore, the bill would mandate a clinical trial for veterans using psilocybin to treat PTSD and a deeper dive into current literature on the topic.

In an uncharacteristic show of support for drug policy liberalization, former Texas Gov. Rick Perry (R) reportedly championed the bill in the state legislature.

The cannabis concentrates bill seeks to reduce the penalty for possessing up to two ounces of concentrate from a felony to a Class B misdemeanor. If approved, it would be the first time since the 1970s that Texas reduces its penalties for cannabis possession.

Additionally, in a move to regulate Delta 8 THC, senators amended the bill to consider all forms of THC to calculate hemp potency in the state, according to the report.

End

UC San Diego Study Investigates Cannabis Treatment for Migraines

5/25/2021

by

Researchers at the University of California, San Diego have launched the first known randomized, double-blind, placebo-controlled, clinical trial to study whether cannabis is effective at treating acute migraines, La Jolla Light reports. There are about 20 participants currently enrolled in the study.

Dr. Nathaniel Schuster, a pain management specialist and headache neurologist at UC San Diego Health and a researcher at the university’s Center for Medicinal Cannabis Research, acknowledged that many people already self-treat their migraines – some with cannabis.

“Many patients who suffer from migraines have experienced them for many years but have never discussed them with their physicians. …  Right now, when patients ask us if cannabis works for migraines, we do not have evidence-based data to answer that question.” – Schuster to the Light

The team hopes to enroll 90 participants to treat four types of migraines with four different treatments: THC, CBD, a combination, and a placebo. The study participants will use a vaporizer, which Schuster said, “may be more effective for those patients who have nausea or gastrointestinal issues with their migraines.”

To qualify for the study, patients must be 21-65-years-old, experience migraines every month, and must not be a regular cannabis or opioid user.

A 2017 study presented at the 3rd Congress of the European Academy of Neurology found a medical cannabis compound reduced migraine frequency by 40.4% and pain intensity by 43.5%.

A Washington State University study in 2019 found patients self-reported a reduction of migraine severity by 47.3% after using inhaled cannabis.

A study published last year by Migraine Buddy and Healint found 82% of migraine patients said cannabis provided them relief.

End

New York Bans Delta-8 & Delta-10 In New Hemp Regulations

5/24/2021

by

New York has joined the growing number of states to ban Delta-8 and Delta-10 THC after the Department of Health (DOH) issued hemp regulations last week clarifying that hemp-derived cannabinoid products may “not contain synthetic cannabinoids, or cannabinoids created through isomerization.”

The regulations also keep intact a proposed ban on smokable hemp – which was initially released last year – but the sale of hemp flower would be permitted as long as it is not marketed or branded as a smokable product.

“It is the mission of the (DOH) to protect, improve and promote the health, productivity and wellbeing of all New Yorkers, and the commitment to a smoke–free society is consistent with that mission,” the agency said in response to concerns about the smokable product ban raised in public comments on the regulations.

The new industry rules also set $1,000 application fees for hemp producers who seek to process cannabinoids and $500 application fees for those seeking to manufacture – rather than extract – hemp cannabinoids. Retailers will have to pay a $300 license fee per location.

The guidelines also require all hemp manufacturers to show evidence of a Good Manufacturing Practices audit under the new rules.

The DOH rules also require out-of-state manufacturers and distributors of cannabinoid hemp products to “adhere to the requirements of the program, to the extent they intend to sell products” in the state.

Regulators in Colorado, Vermont, and Alaska have also banned the hemp-derived cannabinoids, while Washington state has implemented a temporary ban on the products.

End

Greece Legalizes Medical Cannabis Sales & Cultivation

5/24/2021

by

Greece’s Parliament last week passed a measure to legalize the cultivation and sale of medical cannabis, according to the Greek Reporter. The vote comes nearly four years after a decision by the health and justice ministers to downgrade cannabis from under the nation’s drug control guidelines, but those reforms did not include cultivation or sale.

Christos Kellas, a spokesperson for the New Democracy party, said the law will implement “an integrated framework for the development of the cannabis industry” in Greece and supporters “expect that there will be benefits for [the] economy through investments and the creation of new jobs.”

“[The bill offers] new options in the fields of agriculture and processing, but most importantly, to those who use the final products of medical cannabis. Medical marijuana can relieve their diseases and help them respond better to treatments, if this is deemed necessary by the treating physicians.” – Kellas to the Greek Reporter

The measure was approved 158-33; however, the SYRIZA party, which introduced the bill, abstained from the vote in protest because the rollcall was not carried out in person. The party’s protest also led the Movement for Change party to abstain claiming that holding SYRIZA-requested rollcall when that party does not participate in them undermines parliamentary procedures.

The Communist Party of Greece, Greek Solution, and MeRA 25, all rejected the proposal.

End

Cannabis Consumers Run to End the War On Drugs In Massachusetts

5/24/2021

by

“We run to restore our communities that are devastated by the racially motivated War on Drugs,” said Saskia VannJames. Activists from a Massachusetts-based local nonprofit, MRCC, will run the virtual 5k run, ‘Restore Our Communities’ continuing their annual tradition of cannabis consumers, previously as part of the Cambridge 5k, running to raise awareness for their communities.

Pre-pandemic life, MRCC consumers ran in the Cambridge 5k publicized to beer drinkers, the annual race which runs through East Cambridge and Inman Square, draws a crowd of mostly 25- to 34-year-olds with a slogan of “We run for freedom and local beer.”

But the cooperatively ran nonprofit Massachusetts Recreational Consumer Council (MRCC), wants to switch up this year’s focus with a virtual run focusing on their communities.

“We run to support transformative justice for our communities still drowning from the War on Drugs and break the ‘lazy stoner’ stigma as zero funds from cannabis tax revenue have gone towards restorative justice and the racial disparity between black vs white MA consumers has only increased since legalization and decriminalization,” said Saskia VannJames, Lobbyist of MRCC.

MRCC is also running to bring awareness to Senate Bill H.2119 filed by Representative Liz Miranda to further support that substance abuse is a public health issue, not a criminal one, and for people with possession to be met with a public health screening or fine, instead of prison.

“As cannabis consumers who advocate for responsible consumption, we are acutely aware of the need to treat substance abuse,” VannJames said.

MEDIA CONTACT
Saskia VannJames, lobbyist
saskia@massreccouncil.com
617-221-6397 (cell)

MRCC
Massachusetts Recreational Consumer Council
6 Liberty Square #6075
Boston, MA 02109
Massreccouncil.com

End

Montana Gov. Signs Adult-Use Cannabis Implementation Bill

5/24/2021

by

Montana Gov. Greg Gianforte (R) last week signed the bill to implement the state’s voter-approved adult-use cannabis law, KTVH reports. The measure was approved by the Legislature last month.

The legislation allows only the state’s current medical cannabis operators to obtain adult-use retail license for the first 18 months of sales, which are expected January 1, 2022. Recreational cannabis sales will not immediately commence in counties where voters rejected the reforms – instead, localities will have to hold elections to opt into sales. Counties where the reforms were approved will automatically opted in and would require a local election to opt out. Counties can also hold elections to implement a 3% local tax on cannabis sales.

The bill signed by Gianforte maintains a 20% tax on retail cannabis sales, directing up to $6 million annually to a fund for mental health and substance abuse treatment, known as the “HEART Fund.”

“Since January, we’ve been focused on implementing the will of Montana voters in a safe, responsible, and appropriately regulated manner. House Bill 701 accomplishes this. From the start, I’ve been clear that we need to bring more resources to bear to combat the drug epidemic that’s devastating our communities. Funding a full continuum of substance abuse prevention and treatment programs for communities, the HEART Fund will offer new supports to Montanans who want to get clean, sober, and healthy.” – Gianforte via KTVH

Under the measure, Montanans will be allowed to cultivate four plants per household – two mature and two immature per person. It also includes expungement provisions for crimes now legal under the new law and provides each of the state’s native American tribes one recreational license each.

End

Mississippi Medical Cannabis Ruling Stalls Millions of Investment Dollars

5/24/2021

by

After the Mississippi Supreme Court threw out the state’s successful medical cannabis legalization initiative I-65 last week, deeming the voter-approved measure “unconstitutional” on the grounds that the state’s ballot initiative process is flawed, the Department of Health said it is stopping program development. The agency said it would help the legislature, which failed to pass a replacement bill this session, to develop a new “statutory” program instead, WLBT reports.

But the sudden halt has put Mississippi‘s emerging medical cannabis industry in jeopardy by stalling millions of investment dollars, according to a Mississippi Today report.

Companies like Colorado-based Grow Generation and Southern Sky Brands have stopped plans to lease land and build new facilities, delaying millions of investment dollars in the Deep South state’s economy. Quentin Whitwell, who owns a testing laboratory in Marshall County and is waiting to hire employees, told Mississippi Today, “Tens of millions of dollars have already been spent in anticipation of the program and hundreds of millions of dollars have been raised. The state stands to lose one of its highest GDP producing industries because of a politically driven court decision.”

Supporters of I-65 — the state’s successful but overturned medical cannabis initiative — including Ken Newburger, executive director of the Mississippi Medical Marijuana Association (MMMA), are requesting a special legislative session to pass a replacement bill.

“This is not only an affront to voters, but to patients and to the businesses and people who were investing in Mississippi, ready to open in Mississippi. They’re all, at worst, at a loss and, at best, a time lag.” — Newburger, via Mississippi Today

Cindy Ayers-Elliott — the owner of Footprint Farms, an urban farm in Jackson — has continued to plan for the eventual arrival of medical cannabis. She believes that the business of cannabis will help raise Mississippi’s communities of color.

“It’s a clear pathway as an economic engine to help create entrepreneurs, more business owners, more opportunities for a new caliber of training for our workforce, so we can have a livable wage in this state. Something is wrong with the jobs we have here and we continue to repress opportunities,” Ayers-Elliott said in the report.

End

Michigan Bill Would Restrict Delta-8 THC Sales to Licensed Dispensaries

5/21/2021

by

A bill to ban the sale of psychoactive cannabinoids synthesized from hemp – such as Delta-8 THC – at shops not licensed as cannabis retailers in Michigan is headed to the House after passing the Committee on Regulatory Reform, MLive reports.

The bill expands the definition of cannabis to include THC “regardless of whether it is artificially or naturally derived” and put regulation of the cannabinoids under the state’s Marijuana Regulatory Agency.

Currently, the products can be found at some traditional retailers in the state, such as convenience stores.

Republican state Rep. Pat Outman said the unregulated cannabinoids remind him of other “sketchy substances that are working their way into gas stations and other retail places” and that there are “no consumer protections or any sort of regulatory structure” for the products.

Dave Crabill, a spokesman for trade group iHemp Michigan, said hemp that can be used for Delta-8 has “the highest value right now” for producers.

“Everyone that is in the market is going in understanding that it’s a short-lived game that makes some profits in the meantime.” – Crabill to MLive

Under the proposal, hemp-derived THC products will still be allowed to be produced and sold in the state, but only by individuals and shops licensed by state cannabis regulators.

Last week, Colorado regulators banned the compounds from state-licensed cannabis dispensaries, dietary supplements, and cosmetics. Other states with legalized cannabis, such as Alaska and Vermont, have banned the cannabinoids, while lawmakers in Illinois and Oregon are considering their own prohibition on the products. Washington state has implemented a temporary ban on both Delta-8 and Delta-10.

If the Michigan House approves the measure, it would still require approval from the Senate and Gov. Gretchen Whitmer (D) to become law.

End

Colorado Gov. Signs Bill Doubling Personal Cannabis Possession Limits

5/21/2021

by

Colorado Gov. Jared Polis (D) signed a bill on Thursday increasing cannabis possession limits in the state from one ounce to two and expanding criminal justice reforms, including streamlining the records-sealing process and eligibility for other cannabis offenses, Western Slope Now reports.

The measure adds possession to the list of offenses that can be sealed without notification of the prosecuting district attorney, which is expected to make the process less time-consuming and expensive while increasing record-sealing for financially challenged individuals.

The new law also extends record-sealing eligibility to those convicted of a Class C felony for cultivation.

During the signing ceremony, Polis described the bill as “very exciting.”

“Because for far too long the consequences for people who had a personal amount of cannabis – while before it had been legalized – still have a long shadow on them. So for doing something that is fully legal today, they might have something on their record – and of course that is disproportionately people of color – that might get in the way of them getting loans or leases or licenses or jobs or mortgages or many other things. … So with this bill the General Assembly … raises the possession limit to two ounces. Now we will be able to look at using that pardon authority, which we plan to do.” – Polis, during the May 20, 2021 signing ceremony

The governor added that several law enforcement agencies, including the Colorado Bureau of Investigation, Department of Public Safety, worked on the bill alongside lawmakers.

Last year, Polis pardoned 2,734 low-level cannabis convictions and said the new law will expand the number of convictions eligible for pardons.

End

Oxford Cannabinoid Technologies Begins Trading on London Stock Exchange

5/21/2021

by

Oxford Cannabinoid Technologies (OCT) has begun trading today on the London Stock Exchange following a capital raise of £16.5 million, Eastern Eye reports. The company is 2% owned by Casa Verde, the cannabis-focused venture capital firm for which Snoop Dogg is a partner.

Another 21% of the firm is owned by Kingsley Capital Partners, while 11% is held by tobacco company Imperial Brands and 8% is owned by Gavin Sathianathan.

The company was co-founded by Neil Mahaparta, who controls Kingsley, and Sathianathan and his wife, the report says. The company was founded in 2017 to develop cannabinoid-based prescription medications and has a research partnership with Oxford University.

John Lucas, OCT chief executive, has indicated that the company will not use naturally-derived cannabinoids, rather compounds that resemble natural cannabinoids produced synthetically.

The firm said that it aims to get its first drug to market by 2027 and develop a portfolio of four drug candidates for approval. OCT estimated the “addressable pain market” is worth at least £42.5 billion globally.

In an interview with the Financial Times, Mahaparta said the company had considered a private funding round “but market conditions appear buoyant” for medical cannabis pharmaceutical firms.

United Kingdom regulators only last year allowed medical cannabis companies to trade on the exchange. The Financial Conduct Authority guidance does not permit recreational cannabis companies access to the market.

End

Senate Bill Would Regulate CBD Foods & Other Products

5/20/2021

by

A Senate proposal filed on Wednesday by Sens. Ron Wyden (D-OR), Rand Paul (R-KY), and Jeff Merkley (D-OR) seeks to federally regulate the production and sales of CBD-infused food products, beverages, and dietary supplements.

Federal law blocks any new dietary ingredient, food, or beverage from automatically entering the market if it has been studied as a drug or potential medicine — but despite hemp being federally legalized under the 2018 Farm Bill, the FDA has yet to establish regulations concerning food products infused with hemp-derived CBD. The bipartisan Senate proposal, dubbed The Hemp Access and Consumer Safety Act, would rectify that situation by exempting hemp-derived CBD from the rules.

“CBD products are legally being used and produced across the nation,” Sen. Wyden said in a press release. “Yet because the FDA has failed to update its regulations, consumers and producers remain in a regulatory gray zone.”

Sen. Paul said that while “hemp-derived CBD products and businesses have earned their recognition … the FDA, unfortunately, hasn’t treated them like any other food additive or dietary supplement.”

“Every day that the FDA drags its feet to update its CBD regulations, hemp farmers are left guessing about how their products will be regulated, and real economic gains for workers and business owners in Oregon and across the country are left on the table. Hemp-derived CBD products are already widely available, and we all need FDA to issue clear regulations for them just like they do for other foods, drinks, and dietary supplements.” — Oregon Sen. Jeff Merkley, in a statement

According to the release, the bipartisan Senate proposal is supported by at least a dozen trade organizations including the Consumer Brands Association, the Wine and Spirits Wholesalers of America, the National Industrial Hemp Council, and others.

End

Missouri Court: Medical Cannabis Applications Cannot Be Kept Secret by Regulators

5/20/2021

by

A Missouri appeals court on Tuesday ruled that the state’s medical cannabis regulators cannot keep license applications a secret, the St. Louis Post-Dispatch reports. The court determined denying such information to applicants would be “unreasonable and absurd” as they seek to establish whether the scoring system used by the Missouri Department of Health and Senior Services (DHSS) was flawed.

The case was brought by King’s Garden, a California-based company that was denied a state medical cannabis license, which said it needed the information to challenge regulators over the rejected application.

“Without all of the information that formed the basis of the Department’s decision, no meaningful review of that decision can occur. … Because applications are not judged solely on their own merits but are ranked competitively against other applications, the only way to determine whether the Department denied Kings Garden’s applications in an arbitrary or capricious manner is to compare its applications against information from those of successful applicants.” – Western District Court of Appeals via the Post-Dispatch

DHSS argued that the medical cannabis constitutional amendment, approved by voters in 2018, requires the information to remain secret.

Since its launch, Missouri’s medical cannabis program has come under fire from businesses and some lawmakers. Last year, more than 800 rejected applicants filed appeals over their license denial, and two months later, the House Special Committee on Government Oversight launched an investigation into the handling of the licensing process. House Democrats have claimed that DHSS obstructed that investigation.

The state is also being sued over its residency requirements for industry licenses.

In March, Lyndall Fraker, who serves as DHSS cannabis czar, told a House panel that officials expect to spend at least $12.4 million fighting legal challenges in the coming year. That money will come from cannabis industry taxes and fees.

DHSS spokeswoman Lisa Cox said the agency plans to appeal the appeals court decision to the state Supreme Court.

End

Poll Finds Strong Support for Legalization in Connecticut

5/20/2021

by

Nearly two-thirds (64%) of Connecticut residents support adult-use cannabis legalization in the state with about 29% opposed and 7% unsure, according to a Sacred Heart University poll conducted last month and released on Monday.

The poll found support for the broad reforms was down slightly from a survey by the university published in March which found 65.7% backed legalization.

The survey also found that 61.6% of respondents supported legalization-related criminal reforms such as the expungement of low-level cannabis crimes, while less than half (47.8%) said legalization would lead to more drivers operating motor vehicles under the influence.

A supermajority (76.1%) surveyed said cannabis had “fewer” or “the same amount” of effects as alcohol and 70% indicated they believed cannabis had fewer effects than other drugs, such as heroin, amphetamines, and prescription pain medications.

Poll respondents were split as to whether they believed cannabis was a gateway drug, with 41.8% agreeing with the statement with 49.5% disagreeing and 8.7% unsure.

Earlier this week, Democratic Gov. Ned Lamont met with legislative leaders to discuss legalizing cannabis in the state, according to a Marijuana Moment report. Last month, the General Assembly Judiciary Committee approved a legalization proposal and lawmakers hope to vote on the measure before the session ends on June 9, Lamont said.

Earlier this month, Lamont indicated that if the Legislature fails to approve the reforms this session, the issue would “probably” end up being put to voters next year.

Connecticut is bordered by Massachusetts, which legalized cannabis in 2016, and New York, which approved the reforms in March. It is also nearby New Jersey, where voters approved legalization via the ballot during last year’s General Election.

End

Cannabis in the South: Past, Present, & College/University Involvement

5/20/2021

by

The United States’ South includes Alabama, Arkansas, Delaware, the District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia, according to the federal government.

Most of America has experienced ugly history, but this region’s history has been one of the harshest. The South has experienced slavery, segregation, Jim Crow, civil rights demonstrations, and black codes, which even further delayed society’s push for equality. For these reasons and others, the advancement of cannabis legalization and research in the South deserves recognition, especially when led by Black people.

Louisiana State University and Alabama State University are showing that a change is coming. Louisiana State University launched their Therapeutic Cannabis Program, and Alabama State University also recently started to allow medicinal cannabis research. Though neither offer degree or certification programs, allowing for research is a sign of good faith. Wellcana Group in Louisiana and Cannabis Group South LLC are leading the change in partnership with the universities.

The Past – Cannabis and Slave History in the South

In most U.S. history lessons, students are taught that slaves were forced to grow and harvest crops like cotton, tobacco, and sugar. But a lot of American history leaves out the early role of hemp and cannabis cultivation and how it relates to enslaved African Americans. Much of American history is whitewashed, so it’s easy to forget how hemp crops saved early settlements in Virginia, Massachusetts Bay, and throughout the South. Additionally, the country’s early cultivation power was concentrated in the South, where large numbers of enslaved African Americans were forced to plant, grow, harvest, and process hemp.

James F. Hopkins confirmed in his 1951 book, A History of the Hemp Industry in Kentucky, “on the hemp farm and in the hemp factories the need for laborers was filled to a large extent by the use of … slaves.”

The Present – Cannabis Legalization in the South

Though the South was an early adopter of cannabis/hemp cultivation, it has largely been the last to legalize/decriminalize. As of May 2021, just two jurisdictions in the South have legalized cannabis for adult consumption: Washington D.C. and Virginia, but legalization there still carries restrictions.

In Virginia, dispensaries are not anticipated until 2024 but residents who are 21 or older can grow up to four plants (two mature, two immature). In D.C, medical and adult consumption are legal, but adult-use sales are still outlawed. Adults can only legally purchase cannabis if they have a medical card (although the rise of  cannabis “gifting” services in the District has somewhat addressed those concerns).

But as for the remaining southern states and their cannabis priorities:

  • Alabama – illegal
  • South Carolina – illegal
  • Arkansas – medicinally legal
  • Delaware – medicinally legal
  • Florida – medicinally legal
  • Georgia – only CBD oil is legal
  • Kentucky – only CBD oil is legal
  • Louisiana – medicinally legal
  • Maryland – medicinally legal
  • Mississippi – medicinally legal
  • North Carolina – illegal
  • Oklahoma – medicinally legal
  • Tennessee – illegal
  • Texas – only CBD oil is legal
  • West Virginia – medicinally legal

Involvement of Higher Education

Though the South has been very slow in its cannabis legalization efforts, as highlighted above, two states — Louisiana and Alabama — are allowing cultivators to partner with colleges/universities. In Louisiana, Wellcana Group, a fully integrated and diverse Louisiana biopharmaceutical company, is contracted with Louisiana State University (LSU) to cultivate and process hemp.

“In the state of Louisiana, LSU is one of two licensed by the state to cultivate and manufacture cannabis,” said Ra’mon Richardson, Lead Cannabis Cultivator with Wellcana Group, adding that, “I may be the first African American to cultivate and process medical cannabis [in the South].” A powerful statement made by a Black man, in the South, on the same soil where Black people were oppressed and enslaved through black codes and the 13th Amendment.

In Alabama, Cannabis South Group LLC (founded by Matthew Ibidapo), one of the first Black-owned industrial hemp companies, was awarded a license to cultivate hemp as a partner of Alabama State University, which is an HBCU (historically black college or university). Together, Cannabis South Group and Alabama State will work to establish the infrastructure needed for future farmers, entrepreneurs, and retailers.

These strides are important efforts that will shape our future through research that will lead to the further removal of Reefer Madness-era stigmas. These partnerships are also important because as shown above, the South’s reform efforts frequently carry restrictions like banning smokable consumption options — but rules that would ban smokable cannabis while allowing the smoking of tobacco are oppressive and overly restrictive.

The Work Continues

Wellcana Group has a Black lead cultivator, and Cannabis South Group is owned by a Black man — and these are two of the only companies that have been awarded cultivation licenses in the Deep South. Cannabis is certainly not legal in Alabama or in Louisiana, just as a restrictive medicine, but through LSU, Alabama State, and their partnerships with these two cultivation companies, a change is coming — and the South needs it. The South needs a massive change of pace with regard to freedoms, liberties, and reparations.

These licenses, partnerships, and efforts serve as powerful destigmatization tools that will lead to legalization and hopefully, a more balanced field for business opportunities in the cannabis industry. Education is key, and in a region where enslaved African Americans were beaten and worse for reading and trying to learn, thrown in jail through black codes, and robbed of their human and civil rights, historical efforts like these showcase accomplishments that enslaved ancestors could have only dreamt of.

Representation is also an important piece of this puzzle: Black students attending these colleges and seeing these Black men grow cannabis is important because for many, any Black man or Black person touching cannabis — that leads to jail. Many of their family members are in jail because they touched cannabis and many want to have careers in cannabis but are in a region that doesn’t support it.

Like with every other civil and human rights issue, the South needs to join the rest of the country and do what’s right: free the people by freeing the plant.

End

Colorado Proposes Limiting Concentrate Purchases by Young Adult Cannabis Patients

5/20/2021

by

A recently introduced bill in Colorado would reduce the amount of concentrates medical cannabis patients between the ages of 18-20 could purchase per day from 40 grams to two and implement a new system to prevent people from making purchases at multiple dispensaries in a day, the Denver Channel reports.

State Attorney General Phil Weiser said the bill “addresses [the] fact” that Colorado’s medical cannabis laws “have enabled teen access to high potency marijuana.”

The measure would also require patients 18-20-years-old to see two different physicians from separate practices before being allowed to enroll in the medical cannabis program and would require the Colorado School of Public Health to study the effects of high potency cannabis products on young adults. The bill would also force packaging on both medical and retail concentrates to include a warning regarding the possible risks of overconsumption.

The proposal would also limit medical cannabis advertising that targets young adults.

Speaker of the House Alec Garnett (D), the prime sponsor of the bill, said the legislation is necessary as concentrates are “being pedaled through a black market across high school campuses in Colorado.”

It’s the latest attempt by lawmakers make changes related to concentrates. In March legislation was introduced that would cap potency on the products. Democratic Rep. Yadira Caraveo, the sponsor of the proposal, claimed the reforms were necessary due to “more frequent use” of the products among teenagers. The cap was initially set at 15% THC but is currently up in the air following industry backlash.

End

How Vaporfly Helps Vape Brands Scale While Maintaining Quality

5/20/2021

by

As more and more cannabis consumers switch from traditional smoking to vaping, vaporizer businesses are in a constant search for the best and most reliable suppliers to collaborate with. Vaporfly is a time-tested and experienced vaporizer distributor with major industry partners.

There are four main supply chain participants for the modern vape consumer: manufacturers, distributors, laboratories, and retailers.

  • Vaporizer Manufacturers are focused on production — their infrastructure is not developed for retail, as they prefer to sell large quantities of products and frequently don’t offer direct shipping.
  • Retailers, meanwhile, are interested in improving the customer experience. As a customer-facing business, they prioritize selling high-quality products, frequently under their own logos.
  • Laboratories provide services for testing, comparing, and analyzing devices — their services could range from measuring a device’s puff count (the max puff count per battery) to determining its e-vapor density (how much vapor the device produces when used).
  • Lastly, Distributors like Vaporfly help with market research, quality control check, and, most importantly, they take care of all issues related to orders and delivery.

Why work with Vaporfly?

As soon as a product is made, it begins its journey to a buyer — and the easiest way for a product to reach its destination is via distributors. Vaporfly is a longstanding distributor that has worked with the leading Chinese manufacturers of vaporizers and oil cartridges for years. Headquartered in California, Vaporfly specializes in the wholesale and white labeling of cannabis vaping devices. The company provides very flexible customization options with quality control at all production stages. You can apply your logo with ease or even make unique designs for vape devices, packages, or accessories.

Additionally, Vaporfly has built international teams of engineers, quality assurance specialists, and logistic managers, all of whom are well-qualified and constantly monitoring the vaporizer market. With around 4,900 vaporizers in their catalog, the logistic managers can consult and help provide an optimal solution to the needs of any business. They can help identify best-suited products among dry herb, wax, or oil vaporizers, which is especially important for vaporizer startups — newcomers don’t always have enough experience and information about what sells best in their local market.

But most importantly, Vaporfly cares about its end-users and therefore constantly monitors the quality of the products sold. It has its own packing and testing laboratory in the United States and tests devices through laboratories located in both China and the U.S. Vaporfly also employs its own quality assurance engineers located throughout China, who regularly visit factories and check the quality of the products.

A one-stop solution

Working with Vaporfly is simple — all you need to do is choose the device you find perfect for your customers, add your brand logo, and place an order. Whenever you have any questions about products, safety, technical characteristics, there will be the Vaporfly team of specialists to provide more information. Especially, if you are new to the market and don’t know your first steps. The specialists can provide you with the statistics, upcoming products, or best sellers that consumers are looking for.

You will receive support all the way from placing an order to the moment of delivery, and the company will take care of any issue for their clients that may arise.

Ultimately, Vaporfly reduces the time and effort required to make your product available to the end-user right after it was produced at a factory. Not only has it a big number of devices in stock, but can also arrange a delivery and quality assurance check.

Interested in working with Vaporfly? Head to the website and make your first order.

End

Two Indicted Over Multi-Million Dollar Cannabis Ponzi Scheme

5/19/2021

by

An Illinois woman and a Georgia man were indicted for running an alleged Ponzi scheme that involved fake cattle trades and a Colorado cannabis business, DTN.com reports.

Reva Joyce Stachniwand and Ron Throgmartin were each charged with federal wire fraud and conspiracy by the Department of Justice last week, while a third person, Mark Ray, who owned Colorado-based Universal Herbs LLC, was charged in federal court in February 2020 for his part in the conspiracy.

Using the made-up cattle trading company MR Cattle Production Services LLC, the three were accused of defrauding investors of over $650 million between 2017 and 2019. The charges grew from a civil complaint issued by the Securities and Exchange Commission (SEC). In the 2019 SEC complaint, Ray is accused of selling unregulated securities related to a cattle company and his cannabis company as far back as 2014.

The three and other unnamed conspirators procured investments from victims with promises the money was going to legitimate business activities related to the cattle business and Universal Herbs LLC, and issued assurances of short-term returns, DTN reports. Rather, the money received was used to pay back investors within the scheme with $140 million moving around various bank accounts at the high point of the conspiracy. According to receivership documents, Ray has 98 claims against his holdings, filed by investors and banks. Stachniwand settled with the court for $7 million in October 2020, according to the report.

The conspiracy unraveled when a bank raised concerns over the amount of money moving through three business checking accounts owned by Stachniwand. The report says Throgmartin lied and claimed the funds were from cattle trades and went so far as to forge invoices showing fake cattle buys to cover their tracks. According to the report, by 2018 — after Stachniwand had transferred $9 million to her personal accounts and Throgmartin had received $3 million — the scheme began to collapse, leaving an unknown number of investors holding the bag.

The pair face seven federal counts, including one count of conspiracy to commit wire fraud, five separate counts of wire fraud and aiding and abetting, and one count of conspiracy to engage in monetary transactions for unlawful activity. They face up to 10-30 years in prison and could pay up to $1 million per count.

End

Minnesota Approves Flower for Medical Cannabis Patients

5/19/2021

by

Minnesota lawmakers have approved a measure to allow smokable forms of cannabis in the state’s medical cannabis program, MPR News reports. Patrick McClellan, a medical cannabis activist, called the change “the most important” since the law’s passage in 2014.

“What we ended up with is basically a designer drug for the rich. This was only for people that could afford it. Most people like me, who are on disability, were forced then to purchase some from the manufacturers and then products that have been smuggled in from other states that we purchase on the street.” – McClellan to MPR

According to state Department of Health data, Minnesota patients spent on average $316 per month on medical cannabis in 2019 with prices ranging from $30 to about $200.

During Monday’s debate on the measure, Republican state Sen. Michelle Benson, chair of the Senate Health and Human Services Committee, stressed that the change is about helping the state’s patients rather than “make this a path to legalization.”

“It’s a goal to make this available to people with a medical need who cannot afford it,” she said according to MPR. “So, we hope we’ve reached the right balance.”

The approval comes less than a week after lawmakers in the House approved a bill to legalize adult cannabis use in the state; however, that measure will not be considered by the Republican-controlled Senate as Majority Leader Paul Gazelka has described the reforms as “up in smoke” in the chamber.

Democratic Gov. Tim Walz is expected to sign the medical cannabis reform bill which will take effect March 1, 2022.

End

Louisiana House Rejects Bill to Tax Adult-Use Cannabis

5/19/2021

by

The Louisiana House on Tuesday narrowly defeated a measure to tax adult-use cannabis sales were the state to ever pass the reforms, likely preventing the Legislature from approving legalization this year or next, WDSU reports. The tax measure affects 2022 because it is not a fiscal session.

The proposal needed two-thirds of the House to pass; the vote was 47-48.

The bill would have set cannabis taxes at 50% – half for the state’s general fund and half to local governments. Twenty percent of the local government share would have been earmarked for law enforcement.

Republican Rep. Richard Nelson, the sponsor of the tax bill and a separate bill to legalize cannabis for adults, estimated legalized cannabis sales would have amounted to $100 million in annual tax revenues. He said he would not bring up the recreational cannabis bill because of the House vote against the tax legislation.

“Right now, all this money, we have zero. It’s nothing. It’s all going to the drug dealers. We don’t pass this bill, it’s going to go to the drug dealers this year, it’s going to go to the drug dealers next year.” – Nelson on the House floor via WDSU

Last week, the chamber passed a measure to decriminalize cannabis in the state. That bill, which still requires Senate approval, lowers penalties for low level possession to a $100 fine and no jail time.

Among Louisiana voters, broad cannabis legalization is overwhelmingly popular as a poll released in March from JMC Analytics and Polling found 67% of Louisianans support the reforms. A separate poll by the firm released this week found majority support for legalization in nine of the Republican-controlled districts surveyed.

End

San Diego-Area Dispensary Workers Approve Union Contract

5/19/2021

by

Workers employed at three March and Ash dispensaries voted last week to join the United Food and Commercial Workers Local 135, marking the first time a union contract has been ratified by any cannabis businesses in the San Diego, California region, the San Diego Union-Tribune reports. The affected dispensaries are in Vista, Imperial, and San Diego.

Nearly 90% of the more than 140 workers at the dispensaries voted to approve the contract.

Union president Todd Walters described the contract as “industry-leading” and said it would “create a new model for March and Ash employees, and other members of the industry, by providing training, educational opportunities, childcare and more.”

The contract includes profit-sharing, wages up to $17 an hour, and a $30,000 annual contribution from the company for education and childcare. March and Ash already provided healthcare benefits.

Breton Peace, general counsel for March and Ash, said the company “took the time to understand what it is [March and Ash] employees need and want.

“Early on we were asked to join labor agreements that originated elsewhere. That did not interest us. This is a new industry with radically different approaches between municipalities.” – Peace to the Union-Tribune

Earlier this year, The National Labor Relations Board (NLRB) ruled that most cannabis industry workers couldn’t form or join unions because they qualify as agricultural workers; however, that decision doesn’t apply to retail employees, including budtenders and delivery drivers.

Workers in other California cities, such as San Francisco, Oakland, and Santa Cruz, have voted to join UFCW unions.

End

Kathryn Blackwell & Chelsea Mulligan: The Advantages of Dispensary Franchising

5/18/2021

by

With Arizona’s recent switch to an adult-use market, cannabis enthusiasts, entrepreneurs, and investors are scrambling to learn as much as possible about the state’s new cannabis opportunities. The Open Dør is an Arizona-based cannabis dispensary franchise that specializes in providing a comfort-focused and modern retail experience.

In this podcast interview, our host TG Branfalt is joined by The Open Dør’s CEO Kathryn Blackwell and COO Chelsea Mulligan to discuss their fateful meeting, translating mainstream franchising experience to the cannabis industry, and The Open Dør’s emphasis on providing a clean, welcoming, and vibrant retail experience. They also discuss more broadly the advantages for entrepreneurs who choose to work with a cannabis dispensary franchise, the power of entrepreneurial determination, their advice for cannabis industry startups, and more!

You can listen to the interview below or through your favorite podcast listening platform, or scroll down to read a full transcript.

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’m joined by Open Dør co-founders: Kathryn Blackwell, who serves as CEO and as a former co-founder of the Kahala Corp, an international QSR business with brands such as Cold Stone Creamery, and Blimpie Subs and Salads. And Chelsea Mulligan, the dispensary whisperer and COO who has eight years of experience in the cannabis industry, operations and compliance space. Open Dør provides a modern cannabis retail model with a turnkey approval through its franchising model. How are you doing this afternoon, ladies?

Kathryn Blackwell: Wonderful. Thank you for having us.

Chelsea Mulligan: Very fantastic. Thank you, we’re so excited to be here.

TG Branfalt: It’s a pleasure. We have a lot to discuss. You guys come from Arizona, which is newly legalized and they got there faster than anyone else, which we’re going to talk about. But before we get to Open Dør and before we get to Arizona, let’s talk about you guys. What’s your background and how did you end up in the cannabis space?

Kathryn Blackwell: Well, I spent 25 years in quick service restaurants franchising space, building multiple brands like you mentioned, Cold Stone Creamery and Blimpie subs and salads were a few of our brands. We actually took a couple of them internationally. So I have a little bit of experience, not only domestically, but also internationally with the franchising model.

With all of that experience, I saw this emerging industry in cannabis and realized that there was definitely a need for the franchising model in the dispensary space. We saw a lot of variances in really what customers could expect when they walked into a dispensary. They were either walking into what may seem like a medical clinic or more of that traditional head shop. We wanted to build something that customers could know they were walking into a true retail experience and get the education and know that they had somebody to teach them and help them find the products that they were truly looking for to serve their needs.

TG Branfalt: Interesting. How about you, Chelsea? What brought you to this industry?

Chelsea Mulligan: So I’ve been a consumer for about 15 years. I’m a little bit over that and it helped me in so many ways medically and I happened to find an ad for a space to start in management. And I realized very quickly that my experience with like operations, SOPs, mergers and acquisitions was going to play a very big role and then kind of went out on my own and created my own consultant firm to be able to help them SOP’s and policies and procedures, employee training, and all of that.

TG Branfalt: How did you two find each other?

Kathryn Blackwell: Through our other partner, Brian McLaren. I met Brian at an event that was not cannabis-related at all. And once I found out that he was already in the cannabis industry with real estate and zoning and permitting, I tapped him on the shoulder and said, I’ve got this idea. And he really liked it and said, “You’ve got to meet Chelsea Mulligan.” This is, I guess… Here we are.

TG Branfalt: When you started doing this dispensary whisperer, this sort of consulting, what were some of the similarities from your previous roles doing SOP’s and that sort of thing Chelsea?

Chelsea Mulligan: So, just creating standard operating procedures. A lot of people think that just because it’s cannabis, you have to reinvent the wheel or it’s something new. In reality, it’s retail, employee training and doing things the same way, the most efficient way to be profitable. Keep your employees, make customers happy, all of that. That translates from clothing through the gym world, where I come from, as well as the chiropractic world where I come from. So that’s what I think works.

TG Branfalt: So Kathryn, tell me about migrating from a more traditional franchise space to the cannabis industry. What’s the learning curve there?

Kathryn Blackwell: Oh the learning curve is incredibly difficult. Well, I should say it’s very steep. The industry is so highly regulated as you know, and so many nuances that may not fall into a traditional franchise space or traditional business. But knowing that, the industry is still growing and still maturing. There were a lot of instances like Chelsea just mentioned, you don’t have to reinvent the wheel. So bringing some of those traditional franchise tools and tactics and systems into the industry, it seems like it’s been very welcomed. And people are really appreciating the value that, that can bring.

TG Branfalt: For people who might not be aware… They understand the franchising model; McDonald’s and this idea. Can you explain how this model works in the cannabis space and how it takes the pain out of building a cannabusiness?

Kathryn Blackwell: Well again, it goes back to that learning curve and that trial and error. So we’ve built the dispensary prototype with all of the architectural plans, all the security systems that are in place, all of the decor elements, we have vendors already selected. We’ve got insurance companies who are lined up, ready to go. So you are 10 steps ahead, if not more, when you join a franchise system and all of those vendors are fully vetted. We’ve looked at their backgrounds and who their existing customers are. So you’ve got this playbook just laid out in front of you and ready to go. So you’re not wasting that time. You’re just bypassing the learning curve and really 10 steps ahead of any of your competitors in the market by having all of this already laid out.

TG Branfalt: What’s your take on that. Chelsea? You’ve been operating in this space for so long, I’m sure you’ve seen a plethora of different dispensary models. Why were you drawn to this?

Chelsea Mulligan: So for me, like I said, not only is the word standard operating just means standardized. I do think there has to be some changing per market. So we do work some of those local fields into our designs, as well as like the products that we choose. But for me, just like we love Starbucks, I know that I can go into Starbucks when I’m in Florida traveling with my kid and get the same thing. While they may not get to be able to get the same brownies in Arizona that they can get in New York, they would then be able to have the same quality.

That vendor has been vetted for maybe how they use their extractions going into that edible or what vape pen product they use and where they buy it from. So that is, as soon as I heard Kathy’s idea about franchising, I’m like, “That’s brilliant.” If we create the ultimate dispensary model, it can be duplicated over and over again. And also it gives the owner empowerment. We want enough but we don’t want to own their license. That is never our goal. It will never be our goal. So to be able to give them the empowerment to be 10 to 20 steps ahead, have less risk, skip some obstacles others are going to play at. And I think it just all fits for me.

Kathryn Blackwell: And if I could chime in what Chelsea was just saying as well. It’s not only the setup and helping them pick out the quality of products that the brand would require, and that the customer would expect from our brand. But we’re there to support these operators as well. We don’t just sell it to them and get them open and say, “See you later.” We’re checking in on them, we’re coming in and helping make sure that we’re walking through their compliance standards before they get inspected by their local authority. So we’re helping them along the way. So as I like to say, “They’re in business for themselves, but not by themselves.” So that’s another key element of that franchise model.

TG Branfalt: So obviously Arizona’s in the very early stages of recreational legalization. Obviously, you’re going to get a lot more vendors over the course of the next year, two years certainly. Talk to me about Arizona’s reforms and is there anything unique about the state’s legalization law?

Chelsea Mulligan: So I would say the thing that is most unique about it is, every other state that has gone recreational has opened up a ton of new licenses for new players to come in or existing players to apply for new licensing. Here it was a little bit different, while we will have some applications for like more rural cities or counties. All the current license holders were able to apply and be approved very quickly to then be both medical and recreational, which gave the proven dispensary models, the ability to just flip very quickly. And that’s why the application process went so quick.

But then they’re also having 26 social equity licenses. Which, to be honest, we’re super excited about it at The Open Dør because those are the people that may not have all of the resources that the people coming in with a lot of capital do. And we want to handhold, we want to help you through every single part, ask all the questions. So we’re really excited about those 26, because that’s one of our… Not our ideal franchisee, because anyone is our ideal franchisee, but really giving a leg up to those people that this business was built on as a basis.

TG Branfalt: And you mentioned that this happened very quickly that the current operators were able to get licensed. I mean, for example, Virginia‘s on the verge of passing legalization, but they’re not going to open up a market until 2024. It’s taken from ballot box, to open we’re talking November, October. We’re talking just six months, something like that. So for your company, what impact does this have on the franchise model? The fact that this happened so quickly, is there any impact?

Chelsea Mulligan: I don’t know that it’s a huge impact for moving so quickly. I think it brought some broader awareness to the cannabis industry and probably some credibility. Just that people are really looking for these types of products and wanting to get them without having to go through the process of getting a license or getting a medical card and all of that. The interest in the industry and this amazing plant that can help so many different people. I think people are looking for a holistic and a more naturopathic remedy for maybe some of those chemicals that they’ve been taking in pills or prescriptions that they’ve been taking forever. And if they can do something naturally to help those ease their pain of joints or treatment, that just shows me that’s their real interest there. And you have that much interest from the community and from the general public, that’s definitely a good sign for a retail environment.

TG Branfalt: Can you tell me what your conversations have been like with people that have shown interest in your model, or just operators that you’ve talked to in the time that it passed up until now. Can you give me some insight into how operators are thinking currently?

Kathryn Blackwell: This is Kathy. I can just jump in a little bit on the conversations that we’ve had over the last year. And then I would love to get Chelsea’s feedback on current operators or current license holders, I think it would be valuable too. We’ve talked to a broad range of people, either individual people who are seeking out a license and just love the idea, they’ve never been in the retail space before. Like some of these social equity license holders might be. And the idea that someone can help them through, not only the cannabis, navigating the cannabis industry and all those regulations, but navigating just the retail environment and a general business operation has been really, really interesting.

On the flip side, we’ve had conversations with some larger organizations, venture capital firms who have an equity position in multiple licenses, but have only used those licenses in the cultivation piece or in the processing side, because they just didn’t want to get into retail or didn’t know how to get into retail, or just thought it was going to be too cumbersome. So the conversation that they can even increase the value of that license by having a retail dispensary addition to their operation. They’re seeing how that can increase the value of their ownership. So really opposite ends of the spectrum, but just showing you how broad the interest is and the value, but I’m sure Chelsea could speak to some of these existing license holders and really what some of the struggles that they’ve gone through and why this could be valuable.

Chelsea Mulligan: So I can speak to current license holders. So I’m currently the director of operations for two licenses in Arizona called Hana Meds. And navigating this space with DHS, rolling this out so quickly, getting the application prepared, preparing our staff. All of us kind of anticipated a little bit lengthy, more of a time to order child-resistant exit bags and hire some extra people. I think probably the biggest hurdle so far has been that with our dispensaries outside of Phoenix proper. Most of Arizona was bound by a 2000 square foot rule for all retails. Just recently, Phoenix made it larger to 5,000 square feet. So dispensaries within Phoenix are now able to open up a little bit more and be able to, well the ones that have the room, are able to see all of those recreational customers that are coming through.

Our struggle has been, personally in our license, is just navigating how to manage a large influx of people. Not have it be chaotic, abide by social distancing because COVID is still a thing. And that’s, I think has been the biggest hurdle, but here’s the thing. If you’re in cannabis, that means you enjoy change. It means you enjoy learning. If you’re not uncomfortable, you’re not growing, you’re not learning.

So it’s been real uncomfortable in Arizona for about 45 days, especially because testing rolled out here and that has extremely effected supply and wait times. We’re running almost anywhere from four to eight weeks to get testing back on batches. So that has been a huge hurdle, but I think, the state is learning from what they’ve rolled out and we’re learning from how we do things on the industry side. And the biggest thing for me is I think if you could create a relationship between the two that has really great communication, that would have made this rollout exponentially better. But for next time, right?

TG Branfalt: I remember writing stories, it was like one day they may come next week and then the next week it’s like, they’re here. And I was just blown away by that. You touched on something about the square footage issues and something that I think we don’t talk a lot about on the show that Kathryn you brought up at the top was zoning in the cannabis space. And every state has different rules. Talk to me about the zoning issues and the barriers that this places on the cannabis industry and what are some of the best practices for operators to ensure that they are biding by those sometimes complex rules?

Kathryn Blackwell: Right. So the zoning and permitting is not only different state, by state, but city by city, even local communities it can vary municipalities and cities and towns. It all can vary so differently so my suggestion would be, don’t go it alone. Find someone who can help you and navigate that process, who has the experience to go in and do it right from the beginning. You don’t want to get through, even halfway through the process and find out that you don’t have the proper zoning that would just… Such a waste of time and exponentially more headaches.

TG Branfalt: How does that work with the… I’m sorry to cut you off, but how does that work with a franchise model where you have the footprint built and you have to apply that footprint to Scottsdale and then in Phoenix?

Kathryn Blackwell: Right, right. And that all goes back to finding somebody likes Zone Properties, our partner, who’s the expert in this space. And it only works in the cannabis industry. So even if we have to go to a city council meeting and try to get a zoning change or get a variance or something, they already have those relationships and they know exactly how to ask for them and how to work through them. So that is part of the service that with that is part of the franchise, is connecting these operators with all of the resources that they need. And the zoning and permitting would be one of them.

TG Branfalt: Was that something you experienced too Chelsea in your role as a consultant, a lot of these sort of zoning issues come up?

Chelsea Mulligan: So I didn’t personally handle that. I’m definitely more on the operations side, but that’s how Brian and I had met previously, is a lot of his work within zoning. So she said that it changes city to city, state to state, and a lot of times city and state don’t match. So Brian and Zone Properties are responsible for getting the zoning done in Tempe and even like getting the canopy space. What’s the word I’m looking for, not elongated, but increased. Like you used to only have 25,000 square foot of canopy in the city of Tempe and then they expanded that. Whereas, the state doesn’t put a cap on it. So those are the little things of zoning when you’re choosing a building or choosing a city to be in, that having an expert like Brian and Zone Properties, just again, gives you five steps to 10 steps ahead.

TG Branfalt: I’m a weird guy in that I like getting into the details of zoning laws and because the ideas of variance and maybe I’m just a nerd in that regard, but there’s definitely something I think, fascinating to these little nuanced rules. Chelsea on your website you talk about setting realistic expectations and parameters for operators. What are those expectations and parameters in your estimation? I think it’s a very striking term that you use because I think it speaks to your attitude towards this industry.

Chelsea Mulligan: So I think one of the biggest parameters I set would be making sure that the license holders and the managers understand compliance. Also, the entry-level employees, but top down. So compliance is the biggest parameter I set. As far as realistic expectations, it’s if you don’t train your employee and you don’t invest in them, then you don’t get to expect this. So you need to be realistic in what you’re willing to give, what you’re willing to put into your employees, into your dispensary.

Like, I’m usually very, very humble, but I will be honest, we’ve created a beautiful dispensary model. And I think that, that’s where this is going though the more smoke shop feel, more just closet feel that came in 2010 to 2015. It is going by the wayside because we are starting to move into more mainstream. This is just retail and it’s expected. So I think setting a realistic expectation of, if you’re not going to put in that effort to create a brand and a feel and a customer experience you can’t then expect to be ahead of the competition and set yourself apart. So those are some of the expectations I set.

TG Branfalt: How would you, Kathryn, how would you describe maybe in one word, your model or what’s your favorite part of what you guys have designed?

Kathryn Blackwell: The dispensary itself or…?

TG Branfalt: Yeah, the dispensary itself.

Kathryn Blackwell: Oh it just feels like you’re walking into a true retail experience, the lighting and the way the products are displayed and truly merchandised for people to be able to find what they need or just explore what kind of products are out there. It’s streamlined, we’ve got great salespeople that will be on the floor. We’ve really built in a huge educational platform that all of the team members will be required to take. So when we say all are welcome at The Open Dør, it’s truly from the heart.

We want anyone who’s interested in the product if they’ve never tried cannabis or never experienced it before, but they really want to learn maybe how it can help them or to the cannabis user who knows what they like and knows what they want. They can come in and explore other products, but it’s truly a retail experience. Like I said, the lighting and the merchandising and the streamlined flow of getting customers in and out and not feeling rushed, but getting the help that they need. So it’s really just taking it up to a different level, the next level up. Which I think is what as Chelsea mentioned, it’s what consumers are expecting these days. If you’re going to come face to face now, not just ordering online, which we will have online ordering as well. But if you do want to come in, they’re expecting more than a closet and somebody grumpy behind the counter.

TG Branfalt: I managed head shops for a long time, I was sometimes that grumpy guy behind the counter at the shop, so that is true. Chelsea, what about you, is there one word that you might use to describe the dispensary or sort of your favorite part about what you guys came up with?

Chelsea Mulligan: So my favorite part, I think is also the training model Kathy was talking about. The platform we’re using is amazing, the training and the ongoing training. I’m a big believer in continuing education. I think that should be a thing for all budtenders and all employees that are interacting with the customer. Honestly, but my ultimate favorite thing personally for me is that I’ve been helping clients for years, SOP’s and create their dream. And I’m not saying they hindered me at all, but to not have a barrier of it being someone else’s dream and me be able to put everything I’ve ever envisioned would be the perfect dispensary model thing idea to make an ultimate dispensary model. I think that’s my personally favorite thing. It’s kind of like my dreams coming true in front of me.

TG Branfalt: You guys seem like you have formed this really excellent partnership. And it’s great to see you guys separate, but talking about the same thing. You can feel the energy that you both have for this project. What does the future of the industry look like in Arizona? Do you think that it’s going to be mostly flower, are you expecting a lot of edibles? Because, because Leafly just had a report and in each state, we do see trends where flower’s been, in the states that have legalized longer, concentrates have taken over flower. Edibles have taken over in some other states. So what do you guys see as the future of the industry?

Chelsea Mulligan: So I think as far as the products and what is purchased and how it works out recreationally, I think we’ll see an uptick in flower obviously and vape pins. Not as much concentrates because they’re not as easy maneuvered. And I’m not saying they’re traveling with the concentrate, but it’s usually people that are traveling or on the go. So they’re not going to tend to dab and have the torch and all of that. But I think we will eventually mature after recreational is around for a couple of years, the same way the medical market did, that concentrates will become a very large part. In the medical market, concentrates are almost 30% of your business. Five years ago, it was maybe 10%. So I think that recreation, the same thing will happen.

But on an overarching view, I think Arizona is just like the entire country. It’s the tip of the iceberg. Like, those memes, I was telling Kathy yesterday, those memes that you see. It’s like, the title is here and it’s a glacier, but then all the stuff is underneath that you don’t see that. I feel like that is cannabis in general, whether it’s Arizona, North Carolina or the federal government. We’ve only seen the beginning.

TG Branfalt: And what about for you, Kathryn? What is your vision for the future of the industry?

Kathryn Blackwell: Oh gosh, I hope we can legalize it sometime soon for so many different reasons. A) for people to be able to explore more. This amazing plant and everything that it can do, but also so that the current operators and any operators going forward have safe banking and the finance rules are just nuts right now. And it just doesn’t seem fair to a lot of these operators. I’m still learning a lot about it, but the fact that the industry in general can be turned off by a vendor, just with the flip of a switch. And then they may not have health insurance. They may not have a bank. They may not have the business insurance, even payroll services and email platforms, if you believe it or not. We’ll cut out an industry. So I’m hoping that we can legalize the industry that will only help it grow and get better and stronger and safer.

TG Branfalt: It had to have been. Was it shocking to you coming from a traditional background industry to the onerous financial rules in the space? Was it surprising?

Kathryn Blackwell: Oh, certainly. Chelsea started telling me some stories about just banks that would accept a deposit and the process of trying to make those deposits just seemed scary. It just seems scary to me. And then coming from a small business that would accept credit cards. I know that the theft and the danger that we had in just a small business with the limited amount of cash that we had on hand. I can’t imagine what some of these dispensary owners and operators have to deal with and what they’re dealing with to have that much cash on hand. So for safety sake, I’m really hoping that we see change in that respect.

TG Branfalt: Chelsea could you speak to that a little bit? I know in California, Colorado, there’s been some agreements made between small credit unions, that sort of thing for the industry or larger cadres’ that have formed to create these little communities, financial institution-ish sort of things. Can you talk to me about what’s going on with regard to any sort of reforms in Arizona with regard to cannabis cash?

Chelsea Mulligan: So, there’s not much as far as reforms. We do have a bank here that has, I think it’s either three to five branches that will accept cannabis businesses. There’s obviously a very large surcharge to have an account with them because you’re a cannabis business. I actually remember before they officially took on cannabis businesses back in like 2014, they stopped taking money from cannabis at first because they were like, “We have to order two more cash counting machines and we need to hire like two or three more people, you guys are making anywhere from 40,000 to $80,000 a day and it’s all cash. We are not used to this.” So the fact that now we’ve gotten to a place that we can play a larger surcharge and most licenses here can have banking.

And I say most because not all do. And we do have to have it picked up by a secured firm, and everything, we’re not allowed to go deposit it anymore. So we’re making forward movement, but we’re not there yet. We got a long ways to go with the federal government to make that a thing. And like Kathy, I hope that happens sooner rather than later. I remember being a mom in 2013 and driving around with a lot of cash in my car to multiple banks because that was what the option was, and I’m grateful that now that’s not a thing, but it is a thing. And it probably, if it was here at the beginning of our industry, that means other states coming online, that means it’s happening for them too. So just because we don’t experience it here anymore, doesn’t mean it’s not a reality for other people.

TG Branfalt: Thank you so much for sharing that. It’s good that you actually have one bank because, in a lot of states, they don’t even have that one. So wrapping up here, what advice would each of you have, drawing from your own experiences, for entrepreneurs who are looking to get into either the cannabis state space at large or the cannabis space in Arizona? What’s your advice for them?

Kathryn Blackwell: Well, this is Kathy and I guess I would just say be prepared with your plan, know your numbers and know what your costs are and all of that. And don’t give up and keep plugging along, stay informed.

TG Branfalt: And what about from you Chelsea?

Chelsea Mulligan: Mine would be along the lines of Kathy’s, “Don’t give up, believe in yourself.” The old adage of, “If you don’t believe in yourself, nobody else will” is so true, especially in cannabis. And I think that having a backup plan and a backup plan to that backup plan is a good idea. If you know you have a fabulous idea and it works, don’t give up, believe in yourself and make it a thing. I truly believe that all of us have a little bit of entrepreneurial spirit in us and we should play on that whenever we can. And I think my last piece of advice is you can always ask for help from The Open Dør.

TG Branfalt: If people want to ask for help from The Open Dør, where can they find out more about your company and you guys personally?

Kathryn Blackwell: Sure. Well, our website is theopendor.com. It’s only one O, D-O-R.com or feel free to reach out either through our contact page there on the website, or follow us on social media @theopendor on Instagram, or obviously I’m on LinkedIn. So reach out to me there too.

Chelsea Mulligan: We’re both on LinkedIn. You can follow me on Instagram, @thedispensarywhisperer, follow The Open Dør and be excited for our first location.

TG Branfalt: It’s a great moniker, by the way, the dispensary whisperer it’s wonderful.

Chelsea Mulligan: I had a client, Doug Mia. He was like, “I heard from somebody else that you’re the dispensary whisperer and I need to hire you.” And I was like, “I love that name.”

TG Branfalt: When I was doing a little research and I saw that. I giggled very, very much. Thank you for that giggle.

Kathryn Blackwell: She’s earned it.

TG Branfalt: I think so. That’s been The Open Dør co-founders Kathryn Blackwell who serves as CEO and as a former co-founder of Kahala Corp, an international quick-service restaurant business with brands, such as Cold Stone Creamery, Blimpie Subs and Salads, and Chelsea Mulligan the dispensary whisperer and COO. She has eight years of experience in the cannabis industry, operation and compliance sector. And Open Dør provides a modern cannabis retail model with a turnkey approval through its franchising model. Thank you so much ladies, for being on the show. And I look forward to one day seeing an Open Dør dispensary in all of its glory. And I wish you guys the best of luck in these early days of Arizona legalization. Thank you so much.

Chelsea Mulligan: Thank you so much. Pleasure being here.

Kathryn Blackwell: Thank you.

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 will 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.

End

Alabama Medical Cannabis Bill Signed Into Law

5/18/2021

by

Alabama Gov. Kay Ivey (R) signed the state’s medical cannabis legalization bill into law on Monday, making Alabama the 37th state to legalize cannabis access for qualified patients, WVTM 13 reports.

The program will let patients access “tablets, capsules, tinctures, or gel cubes for oral use; gels, oils or creams for topical use, or suppositories, transdermal patches, nebulizers, or liquids or oils for use in an inhaler” — the rules do not allow for the smoking or vaping of medical cannabis products. Patient possession will be limited to up to “70 daily dosages” of medical cannabis.

Doctors who wish to certify patients for the program will have to complete a four-hour continuing education course on medical cannabis and pass an exam demonstrating their expertise. The course could cost up to $500 and a two-hour refresher will be required every two years. Additionally, the law requires doctors to specify daily dosages and product type — however, federal law prohibits doctors from prescribing (but not recommending) cannabis and the provision could dramatically reduce doctor participation if not addressed.

“Signing SB 46 is an important first step,” Gov. Ivey said after signing the bill. “This is certainly a sensitive and emotional issue and something that is continually being studied. On the state level, we have had a study group that has looked closely at this issue, and I am interested in the potential good medical cannabis can have for those with chronic illnesses or what it can do to improve the quality of life of those in their final days.”

NORML State Policies Manager Carly Wolf said in a press release the signing was “an important first step for Alabamans” but that the program is “limited in its ability to sufficiently address the real-world needs of patients.”

“That said, this law begins the process of providing Alabamans, for the first time, with a safe, legal, and consistent source of medicine. In the coming months and years, we anticipate and hope that lawmakers will continue to expand this access in a manner that puts patients’ interest first.” — Wolf, in a press release

Under the law, medical cannabis patients who are 18 or younger will need their parent or guardian to acquire the cannabis for them.

End

Slipknot Co-Founder Launches Cannabis Line

5/18/2021

by

Slipknot co-founder Shawn “Clown” Crahan is partnering with Hollister Biosciences Inc. and Heavy Grass on special edition HashBone packs featuring six half-gram pre-rolls and matches in a soft-touch black matte case with original artwork.

The 75% indica flower and 25% Paradise Citrus bubble hash pre-rolls offer potency levels above 40% THC.

“Just remember,” Crahan said in a press release, “it’s medicine.”

The launch also includes a Green Ticket contest that will allow the winner to receive unlimited entrance for two into any Slipknot shows in the world for the next three years.

Carl Saling, co-founder, CEO, and director of Hollister Biosciences, said that the partnership will allow his company to leverage the experience of Heavy Grass’s music-inspired cannabis products to “amplify [Hollister’s] overall marketing efforts.”

“We are very excited to be launching our HashBone collaboration with Clown. We couldn’t ask for a better partner and someone who is true to the plant. This partnership is our first step in combining hard rock/metal with cannabis in a truly authentic way.” – Saling in a statement

Slipknot is a multi-platinum, Grammy-winning band that has sold more than 30 million records. Their last three albums debuted at number one on both the Billboard 200 and the U.K. Albums Chart.

Last November, metal band Korukuma partnered with NemeSeeds in creating a strain known as KuroKush. In 2018, System of a Down bassist Shavo Odadjian launched his own cannabis brand, 22Red.

End