Former Mayor Worked As Cannabis Industry Consultant While Involved In Licensing

4/05/2021

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Former Fall River, Massachusetts Mayor Jasiel Correia – who was arrested in 2019 and charged with crimes related to extorting cannabis companies – briefly served as a private consultant to cannabis firm Northeast Alternatives, the Herald News reports. The role was approved by the state Ethics Commission in 2018.

He only served in the capacity for one month and there is no evidence in court filings that he received any compensation in that capacity, the report says.

Correia had promised the consulting work would not include city business due to his obvious conflict of interest as mayor but just a week after the Ethics Commission approved the gig, he signed a non-opposition letter and host agreement with the company, the report says.

Four days after getting the approvals, Northeast Alternatives donated $20,000 to Correia’s legal defense fund, which he launched in 2018 as his criminal exposure became public.

Correia is accused of extorting at least four cannabis business operators by soliciting $250,000 each from them in exchange for non-opposition letters from his office. He is alleged to have illegally generated some $600,000 in the scheme as well as alleged arrangements for a future cut in some of the companies’ cannabis sales.

His third chief of staff, Genoveva Andrade, pleaded guilty last year to charges of extortion, bribery, and making false statements in connection with the former mayor’s plot. Andrade admitted to conspiring with Correia to extort a cannabusiness for $150,000 in return for a letter of non-opposition from the then-mayor, conspiring with Correia to extort a Fall River business owner and obtain a variety of benefits, including cash and a Rolex watch valued between $7,500 to $12,000, in exchange for official action and favorable assistance to the business owner, and admitted that as chief of staff she kicked back half of her salary, about $23,000, to Correia on a bi-weekly basis. She also kicked back nearly all of the $10,000 city-funded “snow stipend” that was approved by Correia.

Northeast Alternative CEO Christopher Harkins is expected to be called as a material witness in the federal case, the trial for which is set to begin April 20.

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Poll: 75% of U.S. Voters Support Cannabis Legalization

4/02/2021

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A new Hill-HarrisX poll found just 25% of U.S. registered voters wanted cannabis to remain outlawed, while 38% said legalization should be up to the states and 37% preferring the reforms to be enacted federally.

More Democrats (48%) preferred federal action to state-level reforms (36%), while 16% opposed legalization entirely. The majority of Republicans supported leaving the decision to the states (39%), with 27% preferring federal reforms, while 34% opposed legalization. Independents were split 38% to 36% for their support of federal legalization and state legalization, respectively, with 26% in opposing the reforms entirely.

The survey, which was conducted March 24-26 and included 1,882 registered voters, was published the day New York Gov. Andrew Cuomo (D) signed cannabis legalization legislation and one day prior to New Mexico lawmakers approving the reforms in a special session.

A Gallup poll last year found its strongest support for broad, nationwide, cannabis legalization ever at 68% since the pollster began asking the question in 1969. That poll found support from 83% of Democrats, 72% of independents, and 48% of Republicans.

Senate Majority Leader Chuck Schumer said on Wednesday that legislation would be introduced soon to decriminalize cannabis federally.

Several statewide polls this year in states where cannabis remains prohibited have also found strong support for the reforms, including an Elon University poll that found 54% support among North Carolina residents (34% opposed and 12% unsure); a University of Texas and Texas Tribune survey that found 60% of Texans support legalizing possession of either small amounts of cannabis or any amount for any use; and a JMC Analytics and Polling survey that found 67% of Louisianans backed the reforms.

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Montana Lawmakers Considering Bills to Overhaul Voter-Approved Cannabis Law

4/02/2021

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Montana lawmakers are considering three bills that seek to determine the state’s cannabis regime ahead of its scheduled rollout later this year, KTVH reports. Montana voters approved the reforms during last November’s General Election 58% to 42%.

Under the voter-approved framework, recreational and medical cannabis licenses would be separated but the same person could hold both licenses and only current medical cannabis companies would be able to request an adult-use license in the first year. The tax rate would be set at 20% and revenues would be directed to wildlife habitat and other conservation programs, veterans’ services, and health care worker salaries. The measure also includes local opt-out provisions and allows home cultivation. It would also require the state to begin accepting industry applications by October 1.

The overhaul bill proposed by Republican Rep. Mike Hopkins would push back the timeline for the state to begin accepting recreational cannabis licenses until Jan. 1, 2022; allow only current medical cannabis companies to request adult-use licenses for 18 months; change the opt-out provisions to opt-in; allow municipalities to add a 5% local tax on sales; institute THC caps; prohibit people from participating in the industry if they had any drug-related convictions – including from other states – and would direct most of the revenue onto the state’s general fund and up to $6 million a year for the mental health and substance abuse treatment-focused HEART Fund.

The bills backed by Republican Reps. Derek Skees and Matt Regier would create a single license for both medical and recreational sellers. The bills would reduce the tax on adult-use sales to 15% while raising the tax on medical sales from 4% to 5% and direct one-third of those revenues to a trust fund, with the fund’s interest eventually being used to address any negative impacts from legalization and for the state’s pension liability.

The bill proposed by Republican Rep. Brad Tschida would set up the industry more like how the state regulates alcohol, including a three-tiered system that would require dispensaries to purchase from wholesalers, who would purchase it from cultivators; keep the 20% tax intact but charge it on the wholesale price and direct those revenues to the general fund; and require home cultivators to acquire a license.

The legislature must take action on the bills this session in order to make any changes to the law.

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Detroit Now Accepting Adult-Use License Applications

4/02/2021

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Detroit began accepting applications for Michigan’s ten different types of cannabis licenses on April 1, according to a press release by Mayor Mike Duggan.

The application round will give so-called “legacy” Detroiters first-go at the licenses, with a six-week exclusive application review period for people who have received a Legacy Detroit certification. Additionally, the 395 legacy applicants will receive a 99 percent fee discount and will be awarded a minimum of 50 percent of the total number of new licenses.

“The Legacy Detroiter program provides an equitable opportunity for Detroiters to own a legal marijuana business in the City of Detroit. I’m happy so many people have applied and look forward to welcoming many more entrepreneurs within city borders.” — Mayor Mike Duggan, in a press release

After the legacy application period ends on Mary 1, existing medical cannabis licensees will be next in line (until June 16), followed by general applicants (until August 1). The Detroit City Council passed the legacy legislation late last year in an attempt to head off social equity issues experienced by other cities.

Legacy Detroiters are also eligible to receive 25 percent off city property purchased for the purpose of operating a cannabis business and to receive technical assistance. To qualify for the program, applicants must have “lived in Detroit for 15 of the last 30 years; lived in Detroit for 13 of the last 30 years and are low-income; or lived in Detroit for 10 of the last 30 years and have a past marijuana-related conviction.”

 

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New Jersey’s Stockton University Launches Cannabis & Hemp Research Institute

4/02/2021

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Galloway, New Jersey’s Stockton University has launched a Cannabis & Hemp Research Institute (CHRIS) building on its cannabis studies academic studies and efforts to provide education, research, and resources for the state and national market.

The announcement comes a little over a month after Gov. Phil Murphy (D) signed the state’s legalization legislation into law.

Professor of Biology Ekaterina Sedia, who also serves as coordinator of the cannabis studies minor, noted that Stockton University was the first in the state to offer the minor, which it launched in 2019.

“Stockton is poised to do important research into areas that can provide opportunities for our students and emerging industries and enhance the economy of the state.” – Sedia in a press release

The institute will focus on developing research focusing on hemp cultivation practices, non-medical cannabis research, lab testing, and the creation of hemp and cannabis educational material.

Initially, the CHRIS testing lab will focus on providing testing services to hemp growers, processors, and manufacturers. The university said that while New Jersey was the third state to institute guidelines for hemp cultivation, the state’s industry remains in the nascent stages.

Robert Mejia, an adjunct professor of cannabis studies, said that “Hemp was an important part of America’s past and we’d like to make it an important part of America’s future.”

“We used to know how to grow and process hemp, but because of cannabis prohibition, we have to learn all over again,” he said in a statement. “As we learn, we will be sharing these valuable lessons with our community and the nation.”

The institute’s first event, a virtual cannabis curriculum convening, will be held April 21 and 22. The event will bring together cannabis educators from across the nation to exchange ideas, network, and discuss strategies to enhance cannabis education in higher education.

In February, Rowan University, based in Glassboro, launched its own Institute for Cannabis Research, Policy, and Workforce Development

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Federal Cannabis Legalization Bill Coming Soon, Says Schumer

4/01/2021

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Senate Majority Leader Chuck Schumer (D-NY) said he and several colleagues will introduce legislation soon to decriminalize cannabis at the federal level, opening the door for states to establish their own legalization policies.

“I support decriminalization at the federal level,” Schumer told ABC News on Wednesday, “and we’ll be introducing legislation with a few of my colleagues shortly.”

Marijuana Moment reports that the legislation — while still unrevealed — is expected to remove cannabis from the federal Controlled Substances Act and will likely include social equity elements, as well as restrictions to prevent large tobacco firms from overtaking the industry. The anticipated bill, according to the report, will instead prioritize small business owners and entrepreneurs, particularly individuals who have been most heavily affected by the oppressive drug war.

Sen. Schumer’s announcement came on the same day that Gov. Andrew Cuomo signed into law the formal legalization of adult-use cannabis in New York, the Majority Leader’s home state.

In January, Schumer hinted that lawmakers planned to merge several pieces of cannabis legislation in their quest for federal reform.

Earlier this month, members of the U.S. House of Representatives reintroduced the SAFE Banking Act, which seeks the normalize the relationship between financial institutions and state-legal cannabis businesses. The bipartisan bill was first passed in the House 18 months ago but it never reached a floor vote in the Senate.

Another bipartisan bill recently introduced to the House and Senate seeks to guarantee the cannabis industry’s access to typical insurance packages like property insurance and worker’s comp.

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New Mexico Passes Cannabis Legalization

4/01/2021

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New Mexico lawmakers have advanced two cannabis reform bills to the governor’s desk: one to legalize the adult use of cannabis and another for the automatic review and expungement of low-level cannabis arrest and conviction records, CNN reports.

Gov. Michelle Lujan Grisham (D) — who brought state lawmakers back to the capital for a special legislative session dedicated to reaching a cannabis legalization deal — called the bills’ passage a “significant victory” for the state and said, “my signing pen is ready.”

House Bill 2, the legalization bill, allows adults aged 21 and older to legally purchase up to two ounces of cannabis flower and up to 16 grams of extract from licensed retailers, as well as grow up to six mature cannabis plants at home for personal use. Senate Bill 2, the expungement measure, sets up the automatic expungement of cannabis-related criminal records for offenses that would be legal under the new legislation. People currently incarcerated for a cannabis-related offense will be eligible to have their sentence dismissed.

New Mexico is only the second state this week to establish adult-use cannabis legalization after New York Gov. Andrew Cuomo (D) signed his state’s legalization bill into law yesterday.

“This is a historic day for New Mexico! These important policy changes will ensure that consumers going forward will no longer suffer criminal arrest and prosecution, while also remedying past injustices caused by the drug war. I commend lawmakers for working together to craft legislation that prioritizes social justice and inclusion.” — NORML State Policies Manager Carly Wolf, in a statement

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Dr. Trina Hazzah: Expanding Veterinary Care with Medical Cannabis

4/01/2021

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Between the advent of CBD wellness and the crumbling of cannabis prohibition throughout the US, medical cannabis is an explosively popular topic right now. However, one major facet of cannabis medicine — how cannabinoids can be a useful and natural alternative for veterinarians and pet parents — remains largely unexplored.

Our latest Q&A interview features Dr. Trina Hazzah, a veterinarian and the co-founder/president of the Veterinary Cannabis Society. In this interview, Dr. Hazzah discusses her transition to first exploring cannabis as alternative medicine, her training in Traditional Chinese Medicine, and the conditions for which she may recommend cannabis and/or hemp products. She also explains the Veterinary Cannabis Society’s work to advocate for and educate about the safe use of cannabis medicine for pets, offers tips for cannabis companies who want to create infused products for pets, and more.

Read the full interview below!

Ganjapreneur: What is your veterinary background? Do you have experience with large animals along with family pets?

Dr. Trina Hazzah: As a first-generation Egyptian, I come from a long line of animal lovers. From tortoises to dogs, my grandmother taught me to love and appreciate all animals. I got my first dog when I was 15, and I started cleaning cages at the vet hospital to cover the financial fees of being a dog-owner. Next thing I know, the veterinarian asked me if I could step in to help with a surgery.

Being born and raised in Washington, I have very little experience with large animals except for our family trips to the National Zoo.  I received all my training with large animals in Veterinary School where I was in charge of caring for horses, goats, etc during my large animal medicine rotation and ambulatory farm calls.

Why did you transition from traditional medicine to an alternative approach?

I knew there was more I could do to help my patients that expands beyond conventional medicine. I had been practicing oncology for almost 5 years before I took a step back and re-evaluated my approach. That’s when I started to integrate herbs into my practice, including cannabis. I also became certified in Traditional Chinese Herbal Medicine. Currently, I’m one of the few Board Certified Integrative Veterinary Oncologists in the country who is trained in both Traditional Chinese Medicine as well as conventional medicine.

What Traditional Chinese Medicine herbs aside from cannabis can be used to treat our pets? Are there any herbs from this practice that are safe for humans but toxic to animals?

From reducing anxiety to supporting the immune system or even fighting cancer, there are hundreds of Traditional Chinese Herbal Formulations for essentially every disease or condition that exists in pets. Pet parents can visit the American Holistic Veterinary Medical Association’s website to find a holistic practitioner in their area.

It’s important to work with a holistic practitioner to help find the best options when sourcing your pet’s herbal formulation. This also helps you avoid the Chinese herbs that are contaminated with toxic compounds such as aconite or strychnine. A practitioner can also help you steer clear from herbs containing undeclared plant material, heavy metals, pesticides, and microorganisms, which can cause serious side effects.

Where did you learn about cannabis therapies?

Overall, I would say it was my love and passion for science, integrative medicine and helping animals that drew me into the cannabis industry. I quickly dove into all available literature, started attending cannabis conferences and symposiums, while also absorbing everything I could from experienced cannabis physicians. I also immersed myself into organizations such as the Society of Cannabis Clinicians and the  Canadian Association of Veterinary Cannabinoid Medicine just to surround myself with like-minded professionals. I later co-founded an organization of my own- the Veterinary Cannabis Society.

What conditions would you normally recommend treating with cannabis or hemp?

The two most common reasons why pets are introduced to cannabis is to help alleviate anxiety or pain. Gastrointestinal disease, neurologic disease, anxiety, cancer, and inflammatory skin diseases are a few other conditions where cannabis has been shown to be effective. The pharmacokinetics and safety of CBD and other cannabinoids in dogs and cats has been published across studies since 2018, along with a handful of clinical studies supporting the use of CBD-dominant hemp products for osteoarthritis and seizures in pets.

How are the dosing parameters and delivery methods different for pet vs. human products that are infused?

The first mistake pet owners make is assuming that products made for human medical patients or consumers are automatically safe for animals. This couldn’t be further from the truth. The major reason for that is because the contamination testing limits for human patients may be completely different from those that are safe for animals. Cannabis products for humans may also contain ingredients that are toxic for animals such as xylitol, chocolate, raisins, etc. It’s important to note that dogs, in particular, are much more sensitive to the effects of THC, because canines have a higher density of cannabinoid receptors in their cerebellum compared to any other species studied.

Essentially, infused human products are simply far too potent for dogs especially, but there are several different product formats with varying potency levels specifically developed for animals. There are tinctures, treats, capsules, you name it. The key is to understand the pros and cons of each, because every pet is unique, and one method may be more effective than the next. For instance, some cats might be turned off by the strong aroma of the terpenoids found in a tincture, but the same cat might enjoy an infused treat instead. When it comes to identifying the optimal dose, I’d say the “start low and go slow” process that’s often advised for human patients applies here for pets as well.  If you are unsure about how many milligrams make an optimal dose, it might be best to use a tincture that helps quantify exactly how many milligrams a pet is receiving.

Do you have any tips for cannabis and CBD formulators for making effective and safe products for pets?

Focus on the science, and partner with cannabis veterinary experts to develop an unbiased, scientifically justified, and most importantly, undeniably safe pet product. Cannabis producers should follow a stringent set of quality control standards, which VCS is in the process of developing. We are currently working on a “Veterinarian Cannabis Society Seal of Approval” signifying certain product batches as meeting the highest standards of quality and safety.

Why don’t veterinarians feel comfortable speaking with pet parents about cannabis medicine?

Frightened by the possibility of legal ramifications and disciplinary action from their local veterinary board, most veterinarians struggle to discuss cannabis with pet parents. The majority of the state veterinary medical boards are not taking a solid stance for either hemp or high THC cannabis products, making it very difficult for veterinarians to understand the legal parameters within their specific state. California was the first state to pass a bill allowing veterinarians the right to discuss cannabis with pet parents without any fear of disciplinary action. Michigan recently followed in California’s footsteps, so there is some progress being made.

A 2019 study that surveyed 2,208 veterinarians who treat dogs revealed that 96% of veterinarians have been asked questions about safely treating their patients’ ailments with cannabis or hemp, but 55% of vets don’t feel comfortable discussing cannabis with patients. That leaves a lot of room for unanswered questions, which is where the Veterinary Cannabis Society (VCS) comes in as the first 501(c)(3) non-profit organization focused on raising awareness of cannabis as a medicine for animals. The mission of VCS is to create lasting solutions that ensure the safe use of cannabis in pets through education, advocacy, and promoting product standards.

How is the Veterinary Cannabis Society currently working to educate and advocate for the safe use of cannabis in pet medicine? Can non-veterinarian advocates assist in this mission?

It is essential to remove the long-standing stigma and actively advocate for legislative change to improve access for patients.  If we work together, form a strong community, and focus on furthering our cause, we can help keep our pets safe. Consistent and appropriate legislation addressing the use of cannabis in veterinary medicine will help alleviate confusing and conflicting information. Along with supporting veterinarians who are active in legislative efforts, VCS coordinates and offers legislative assistance to state legislatures, veterinary medical boards, and regulatory bodies on issues surrounding cannabinoid use and animal safety. We also collaborate with product manufacturers who are actively participating in advocacy and legislative efforts.

Another part of removing the stigma and keeping our pets safe is through education. VCS believes that cannabis education, guidance, and support should be readily available to all who need it.  Our education program offers a variety of course content for veterinary professionals, pet parents, and product producers alike. We have a robust curated research library, including critically reviewed articles, podcasts, presentations, etc. We have plans to establish the first-ever veterinary cannabis education certification course as well as develop a forum for networking and collaborating on cases.

Recently, Michigan became the second state to grant veterinarians the right to discuss cannabis with pet parents, but what does that mean for other adult-use or medical states?

As California and Michigan set the tone, many other states will start to follow suit, making way for veterinarians to become bigger players in the field of cannabis medicine for pets. Right now, veterinarians are silenced in other adult-use or medical markets, but their voices need to be heard. After all, who else is more qualified to discuss and recommend cannabis to pets, if not the veterinarian?

A segment of the Veterinary Cannabis Society is dedicated to supporting veterinarians through various advocacy efforts, so hopefully, we will begin to see other states making waves soon.

If not from the vet, how can pet owners get the information they need and why should they be aware of these roadblocks?

That’s a great question. As I mentioned previously, The Veterinary Cannabis Society serves as a great tool for pet parents to obtain accurate educational material. VCS also offers a directory of veterinary practitioners who are knowledgeable about cannabis as a treatment option. Everything pet owners might find useful is on our website!

Thank you, Dr. Hazzah, for answering our questions! Learn more about Dr. Trina Hazzah and her group at VeterinaryCannabisSociety.org.

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Virginia Gov. Proposes Allowing Cannabis Sales Three Years Early

4/01/2021

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Virginia Gov. Ralph Northam (D) proposed changes on Wednesday to the legislature-approved cannabis legalization bill that would let adult-use sales begin in July and allow home cultivation. As passed, the law would not allow sales to commence in the state until 2024 and home grows are prohibited.

“Our Commonwealth is committed to legalizing marijuana in an equitable way. Virginia will become the 15th state to legalize marijuana – and these changes will ensure we do it with a focus on public safety, public health, and social justice. I am grateful to the advocates and legislators for their dedicated work on this important issue, and I look forward to this legislation passing next month.” – Northam in a press release

Other changes proposed by the governor include industry labor protections, public health protections, and a process to seal cannabis-related criminal records immediately.

The labor protections would allow the Cannabis Control Authority to revoke an industry license for interfering with unionization efforts, failing to provide a living wage as defined by the U.S. Department of Labor, or classifying more than 10% of its workforce as independent contractors.

The governor is also calling for the immediate funding of a public awareness campaign focused on the health and safety risks of cannabis and funds to provide drugged driving training to the state’s law enforcement officers.

Northam is also proposing allowing adults 21-and-older to cultivate up to four plants – out of sight of public view and out of range of minors.

Delegate Lamont Bagby, chair of the Virginia Legislative Black Caucus, said he was “pleased” with the governor’s proposal.

“We are doing everything possible to repair and redress the harm done to communities of color most impacted by marijuana criminalization,” he said in a statement. “The Virginia Legislative Black Caucus stands in support of the Governor’s amendments because justice must not be delayed.”

Under the governor’s proposed changes, legalized possession would also take effect in July – under the legislature-approved version those provisions, too, wouldn’t have taken effect until 2024.

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Veriheal Scholarship Program Offers $20k to 20 Students

4/01/2021

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Denver, Colorado-based cannabis technology firm Veriheal is offering another $20,000 in scholarships to 20 students with the best ideas to improve the industry. Last year, the company awarded $10,000 to 10 students.

The scholarships are not limited to any academic concentration, open to high school seniors and college students of all ages in the U.S. Applicants are required to submit one 1,000-plus word essay describing their plans to improve the cannabis space. Winners will be chosen based on the best overall combination of knowledge, innovation, and passion for the future of cannabis as an industry and medical medium, the company said.

Veriheal co-Founder and co-CEO, Joshua Green, said the company is “fortunate to be in the position to support budding entrepreneurs from all walks of life and bring diverse, fresh perspectives to the cannabis field.” The company noted it has experienced “triple-digit growth over the past year.”

“With this scholarship fund, we’re putting $20,000 directly into the hands of a new generation of innovators who will help shape the future of our industry. The cannabis category is growing at an extraordinary rate, and there are many complex problems that must be solved across all sectors, from finance and technology to science and education.” – Green in a press release

Last year’s winners’ essays included business, agriculture, biochemistry, public health, pharmacology, medicine, and liberal arts topics.

The deadline for the 2021 scholarship is July 30. The winners will be announced in August.

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North Dakota Lawmakers Consider Putting Legalization Question to Voters

4/01/2021

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North Dakota lawmakers are considering putting a cannabis legalization question to voters next year after the Senate defeated a reform package last week, the Bismarck Tribune reports.

The only other state in which lawmakers spearheaded a legalization ballot question was New Jersey in 2020. Voters approved that question 2-to-1.

The Senate Delayed Bills Committee on Tuesday approved 3-2 the introduction of a constitutional resolution by Republican Sen. Dick Dever for a June 2022 measure, allowing the bill to be heard by the chamber despite being introduced past the deadline for new legislation.

Dever, who voted against the legalization bill last week, told the Tribune that he would prefer a public ‘yes’ or ‘no’ vote that sends a directive to the legislature, rather than an advocate-sponsored initiative.

The measure asks whether “the legislative assembly shall authorize and regulate the manufacture, sale, and use of adult-use cannabis in the state.”

Jody Vetter, chairwoman of the North Dakota Cannabis Caucus one of two groups seeking to put cannabis on ballots next year, told the Tribune that her organization is “still moving forward” with its efforts.

Legalize ND Chairman David Owen described the legislative action as “a cynical attempt to kick the can down the road” as it wouldn’t be considered until the 2023 legislative session. He did not indicate whether or not the resolution changes the group’s plans for a ballot push.

In 2018, North Dakota rejected a ballot initiative backed by Legalize ND 59%-41%. That proposal would have removed all cannabis penalties from state law and allow anyone 21-or-older to cultivate and sell the plant with no limitations, tax-free. The proposal remains the most progressive legalization reform to be put to voters in the U.S.

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New York Legalizes Cannabis for Adult Use

3/31/2021

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New York has legalized cannabis becoming just the fourth state to approve the reforms via the legislative process. The measure passed both chambers along party lines and was signed into law Wednesday morning by Gov. Andrew Cuomo (D).

Some aspects of the reforms took effect immediately, including adult possession, expungement of crimes now legal under the new regime, and the creation of the Office of Cannabis Management. The law allows adults to grow their own plants – three mature and three immature – but that provision doesn’t take effect until sales begin, which are anticipated in about 18 months.

Rep. Richard Gottfried (D), a longtime champion of the reforms in the state, called the law’s passage “a milestone on the road toward a more rational drug policy in New York.”

“Now, the Marijuana Regulation and Taxation Act will take a giant step forward. It will create economic opportunities, including community reinvestment and social equity programs. As a result of MRTA’s passage, New York is projected to collect new annual state tax revenues of about $350 million, and to generate between 30,000 to 60,000 jobs.” – Gottfried in a statement

The final version of the bill earmarks 40% of tax revenues for reinvestment in communities most affected by the enforcement of cannabis laws, 40% for public education, and 20% for drug treatment, prevention, and education. The bill imposes a 9% state and 4% local tax on recreational cannabis sales along taxes based on THC content – 0.5 cents per milligram for flower, 0.8 cents per milligram for concentrates, and 0.3 cents per milligram for edibles.

The bill also allows for social use establishments.

Half of the licenses will be set aside for social equity applicants, including minorities, women, disabled veterans, and people most affected by the disproportionate enforcement of cannabis laws. Social equity programs are also included in the measure, including loans, grants, and incubator programs for small farmers and individuals from unduly impacted communities who want to enter the space.

Empire State NORML Deputy Director Troy Smit noted that New York was once the “cannabis arrest capital of the world.”

“This might not be the perfect piece of legislation,” Smit said in a statement, “but today, cannabis consumers can hold their heads high and smell the flowers.”

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Report: Chicago’s Green Thumb Industries Under Investigation for Pay-to-Play Allegations

3/31/2021

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Chicago, Illinois’ Green Thumb Industries is reportedly under federal investigation for possible pay-to-play violations associated with the process of acquiring a state cannabis license, according to the Chicago Tribune.

GTI spokeswoman Linda Marsicano told the Tribune that the company was “not aware of any such investigation.”

“Green Thumb takes compliance very seriously and operates with the highest standards of ethical business conduct.” – Marsicano to the Tribune

Shortly after the report’s publishing, GTI pushed back harder against the claims in a press release in which the company demanded a retraction from the Tribune.

The alleged investigation is said to be focused on campaign donations and other actions by the company during the state’s initial retail cannabis licensing process; it’s thought to be the first federal inquiry of an Illinois cannabusiness. The reported investigation also comes at a time when Illinois is working to renegotiate its adult-use cannabis regulations to improve social equity ownership in the state. Many applicants have raised concerns about well-off and well-connected individuals and businesses wielding money and political influence to jump into the cannabis industry while those individuals who were most negatively affected by prohibition continue to struggle for a foothold in the now-legal industry.

GTI had been one of the state’s first licensed medical cannabis companies. The company, which operates in 15 states and trades over the counter as GTBIF, reported more than half a billion dollars in total revenues last year and an estimated market capitalization of $5 billion, according to financial reports filed with the U.S. Securities and Exchange Commission outlined by the Tribune.

Last year, the Federal Bureau of Investigation said it was aware of public corruption, including bribes, in the cannabis industry. Since the launch of the legal industry, the agency has made several arrests related to licensing bribes, including the arrest of three Michigan men in 2017 and the arrest of a Humboldt County, California Planning and Building inspector in 2018.

In one of the more high-profile cases, Genoveva Andrade, the third chief of staff to former Fall River, Massachusetts Mayor Jasiel Correia, pleaded guilty last year to charges of extortion, bribery, and making false statements in connection with Correia’s scheme to extort cannabis businesses. Correia is accused of bribery and extortion related to cannabis licensing.

In an unrelated lawsuit against GTI Founder and CEO Ben Kovler – which alleges that he stole his ideas for the company, including the name – he brags about his relationships with the “political world” from Chicago to Springfield.

Note: Lukas Barfield contributed to the reporting in this article.

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Nebraska Legislative Committee Advances Medical Cannabis Bill

3/31/2021

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Nebraska’s Legislative Judiciary Committee on Tuesday advanced medical cannabis legislation moving it to the floor for a vote, KPVI reports. The measure includes amendments outlining qualifying conditions for the program which narrows the initial version of the legislation.

The committee in 2019 advanced similar legislation but the measure died on the Senate floor despite the sponsor, Sen. Anna Wishart (D), agreeing to all of the opposition’s amendments. Wishart is the also sponsor of the legislation approved by the committee yesterday.

“One victory down, now on to the full Legislature for debate,” she wrote on Twitter following the committee’s approval.

Last year, advocates had successfully gathered enough signatures to put the issue to voters; however, the state Supreme Court ruled the question violated the one-issue rule for ballot questions.

Sen. Steve Lathrop (D), Judiciary Committee chairman, noted that there is a petition drive waiting to be circulated if lawmakers don’t act on the reforms and it would be “the most compelling argument” in favor of the legislation on the floor.

“The opportunity for us to regulate medical marijuana is strongest if we do it legislatively, rather than try to react to a constitutional amendment that comes to us by way of a petition initiative.” – Lathrop via KPVI

Wishart, a co-founder of Nebraskans for Sensible Marijuana Laws, indicated in December that she plans to work on a ballot initiative for adult-use cannabis legalization. Organizers would need 250,000 total signatures to put the issue to voters next year.

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Cannabis Lounges Proposed in Nevada

3/30/2021

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A bill to allow cannabis consumption lounges was proposed last week in Nevada, according to an 8 News Now report.

Introduced by Assemblyman Steve Yeager, Assembly Bill 341 would open the door for social use cannabis lounges across the state. The bill seeks to provide a solution to a problem that consistently vexes legal cannabis states — like many other jurisdictions, Nevada allows adults to purchase cannabis products but consuming them must be done on private property, out of public view. This is a big issue for tourist destinations like Las Vegas where visitors may buy cannabis, but then have problems finding a legal place to consume their purchase.

“The time’s just right, and the momentum is right. We have the Cannabis Compliance Board now, which is the regulatory agency for the cannabis industry. I think they’re going to have a large role to play in helping us make this happen.” — Assemblyman Yeager, via 8 News Now

If passed, localities would be allowed to opt-out of licensing any social use businesses.

David Farris, VP of Marketing and Sales for Planet 13 — which is billed as the world’s largest dispensary and is located near the Las Vegas Strip — said Las Vegas has been asking for social use cannabis lounges for “a long time.”

“We think it’s something that’s necessary in Las Vegas,” he said. “I think it’s the right thing to do to allow our local and tourist customers to consume cannabis products.”

Assemblyman Yeager said the legislation can address public concerns — particularly those related to intoxicated drivers — like they do with alcohol.

“As we work through the legislation, we need to make sure that we do this responsibly,” he said in the report. “We have a good model when it comes to alcohol. We allow alcohol consumption in bars, clubs and restaurants, but people have been trained to be able to identify the signs of somebody who is partaking too much.”

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St. Patrick’s Day Cannabis Sales Top $89M

3/30/2021

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St. Patrick’s Day saw the highest cannabis sales so far this year, totaling $89 million throughout the U.S., according to MJ Freeway data outlined by Forbes. The total was 50% higher than the average sales on Wednesdays so far this year.

From St. Patty’s Day through Friday, cannabis sales topped $230 million, the report says.

The uptick could be due to not just the holiday but also the most recent round of pandemic-related stimulus checks that started hitting bank accounts on St. Patrick’s Day.

Jessica Billingsley, CEO of Akerna, which owns MJ Freeway, said she was “astounded at the sales figures.”

“Historically, we have seen no large bumps or changes on St. Patrick’s Day, but we did see jumps in sales last spring amid the first stimulus check payments. Because of that, I expected to see an increase in sales from these larger checks but certainly did not expect to see this year’s largest sales day.” – Billingsly to Forbes

Billingsly also predicted another record-breaking day next month due to April 20 – or 4/20.

MJ Freeway found a 45% increase in flower sales, a 32% increase in vape sales, a 13% increase in concentrate sales, and an 8% increase in edible sales.

Customers 30- to 41-years old represented 31% of the holiday’s sales, according to the data, followed by those under 30 with 28%. Those aged 40 to 50 represented 20% of sales, with 50- to 60-years old comprised 12%, while customers 60-and-older represented 9% of sales, the report found. The majority of customers, 60%, were male while 40% were female.

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East Coast’s First Black Woman-Owned Recreational Dispensary Opens in Massachusetts

3/30/2021

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The first Black woman- and Haitian-American-owned adult-use cannabis dispensary on the East Coast has opened in Brockton, Massachusetts, Enterprise News reports.

Brockton’s Vanessa Jean-Baptiste — who co-owns Legal Greens with Mark Bouquet, of Boston — said, “As first-generation Haitian Americans, we are fulfilling our parents’ dreams of creating a better life for future generations to come.”

A recent beneficiary of Massachusetts‘ economic empowerment program — which was designed to help members of communities that were disproportionately affected by cannabis prohibition to obtain cannabis business licenses — Jean-Baptiste said she wanted to help revitalize the downtown of the city where she grew up. Legal Greens is the second dispensary located in downtown Brockton.

“I want to bring life into downtown. I want to be the first person in downtown to create some change.” — Jean-Baptiste, via Enterprise News

To help get things started, the company was given a loan for $100,000 in cash and $150,000 in product from Massachusetts- and Maine-based cannabis retail cannabis chain Theory Wellness. Legal Greens used the loan to renovate a former commercial building owned by Haitian activist Fred Fontaine.

Jean-Baptiste said she hopes to expand the business to cover both cannabis cultivation and manufacturing in the future. The company also intends to help people freshly released from prison rejoin society.

“We hope to inspire Black and brown residents in Brockton and across the country to pursue their dreams relentlessly because as long as you work hard and don’t give up, anything is possible,” Jean-Baptiste told Enterprise News.

Editor’s note: A previous version of this article incorrectly stated that Legal Greens was the first Black woman-owned dispensary on the East Coast. Rather, it is the first such recreational retailer, but there are multiple medical cannabis dispensaries on the East Coast owned by Black women including Mary & Main in Maryland and the National Holistic Healing Center in Washington DC. We regret our reporting error.

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Canada Starts Fining Border Crossers Who Don’t Declare Cannabis Products

3/30/2021

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The Canada Border Services Agency (CBSA) yesterday began issuing monetary penalties to travelers who fail to properly declare cannabis and cannabis products when crossing the border. The agency noted in a press release that while cannabis was legalized federally in 2018, it remains illegal to cross the border with cannabis without a valid permit or exemption.

The coronavirus has shuttered the border between the U.S. and Canada, and it remains closed to non-essential travel until at least April 21.

The financial penalties are “another tool, besides criminal prosecution” to enforce “unauthorized cross-border movement of cannabis in any form,” the CBSA said. The penalties will apply to travelers who provide false information to an officer or fail to report imported goods containing cannabis.

“The CBSA also reminds Canadians that although the possession of cannabis is legal in some U.S. states, it remains illegal under U.S. federal laws. Do not attempt to cross the Canada-U.S. border with any amount of cannabis in any form, even if you are travelling to a U.S. state that has legalized possession of cannabis.” – CBSA in a press release

Penalties will range from $200 to $2,000 CAD depending on the type of contravention, the severity of the offense, and any history of non-compliance. Those who disagree with the penalty will have 90 days to request a review of the officer’s decision.

The notice also notes that exporting cannabis products without a license – including CBD or hemp-derived products – remains illegal.

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Cannabis/Hemp Drinks: Intersecting the ‘Consciously Sober’ and ‘Drinks with Benefits’ Macro-Trends

3/30/2021

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Americans’ beverage preferences have always changed over time but never quite as rapidly as they have in recent years. Today, people of all ages choose different drinks depending on varying “use occasions.” Consumers are open to trying new beverage options and entrepreneurs have become increasingly adept at tapping into this flexibility through creative marketing.

There are several current trends within the overall beverage market but two of the most relevant to the cannabis/hemp industry are the growing number of people who are becoming “Consciously Sober” and the even greater number who opt for “Drinks with Benefits.”

The term “Consciously Sober,” also sometimes called “Sober Curious,” describes individuals who are more mindful about the decision to drink alcohol. These consumers are not alcoholics who have a dangerous problem and must completely abstain from alcohol. Instead, the Consciously Sober are people who choose to question the need to consume alcohol at every social occasion and have discovered personal lifestyle benefits from drinking less or not at all.

The term “Drinks with Benefits” references beverages that deliver desirable ingredients along with hydration. Originally simple, plain bottled water was the ultimate healthy drink without artificial flavors, heavy sugar, and lab-generated colors. But eventually, consumers and the entrepreneurs who serve them realized water could also be the ideal vehicle for delivering added benefits. Why not deliver good stuff with the water you need to consume anyway?

These social movements began small but gained momentum as consumers experimented with the burgeoning variety of beverages. They started choosing different beverages depending on whether they wanted a certain taste, health benefits, more energy in the afternoon, or a good night’s sleep. They also began to read labels. More knowledge about what was in beverages led a growing number of consumers to look for products with ingredients they wanted — or wanted to avoid.

How can Cannabis/Hemp brand owners position their products to benefit from these trends?

Hemp can be creatively positioned in a variety of ways to appeal to the non-alcoholic crowd. Bar and restaurant owners do not want to lose the revenue from alcohol but can charge more for drinks delivering flavor, function, or fun. Perhaps a bartender uses a hemp powder to enhance a mocktail in a “sober bar?” Maybe they prefer to use hemp in a liquid format like bitters where a dash is added for an additional charge. Shouldn’t the designated driver enjoy a good drink as well? Maybe something to help her chill while the alcohol drinkers tell bad jokes?

Cannabinoid-infused beverages are a rapidly growing segment in this new and explosively popular industry.

Hemp could also be the featured ingredient in a premixed beverage format for use at home or at a restaurant. Not surprisingly, a few enterprising brand developers are already pioneering this nascent market. Aplós is a new premixed hemp-based beverage which describes itself as a “plant-based, non-alcohol spirit, that calms and uplifts, without the negative side effects of alcohol.” Another take on the market from Oregon is Aurora, which was “created for an inspired aperitif experience that evokes balance and restoration without intoxication.” In other words, both of these woman-owned brands are delivering a fun, good-tasting social experience without the alcohol.

Rather than alcohol-free, what about “alcohol alternative” beverages with cannabis extract containing THC? A growing number of consumers seek the relaxation or recreational effects of alcohol but want to avoid hangovers and other unhealthy side effects. There are certainly more than a few companies exploring this market, most notably Constellation Brands with their investment in Canopy. It is certain other wine, beer, and spirits purveyors will jump into the fray once the regulatory environment is deemed safe. But the competition from established beverage giants shouldn’t prevent smaller companies from being successful long term. After all, craft breweries have been giving the beer giants fits for years and small distilleries are having success competing with the international liquor powerhouses.

An early “trend within the trend” appears to be making beverages with small or “micro-doses” of THC. Part of this is consumer preference as people want cannabis to elevate their social experiences and not hinder their good time. The other driving force for adding a small amount of THC to a beverage is brand owners want to sell multi-packs and bar owners prefer having the opportunity to sell several drinks instead of just one.

The first significant marketing influencers for cannabis drink brands are “celebrity mixologists” as well as famous users who initially became noted for reasons other than cannabis. Mixologists are known for their ability to create great-tasting cocktails and their followers rely upon them to “curate” their drinking experience. This trust should naturally translate to cannabis drinks as well. Many famous users ranging from Snoop Dogg, Willie Nelson, Tommy Chong, and Seth Rogen are already in the market with a variety of products. And Martha Stewart of all people has a CBD line!

How big is the opportunity?

Currently, the global cannabis beverage market is heavily fragmented due in part to the absence of larger traditional beverage companies from the segment. But even without the participation of the CPG giants, the market is estimated to reach $2.8 billion by 2025 on the basis of consumer demand.

The market will draw users from the pharmaceutical industry who will use hemp and cannabis to replace both over-the-counter and prescription pain and sleep medication. Users will also migrate from the alcohol market. Early data indicates beer and wine purchase orders have declined by around 15.0% in the last 10 years due to consumers’ use of cannabis.

A study jointly conducted by the Universities of Georgia and Connecticut suggests millennial populations are currently the primary consumers of cannabis beverages but the use should spread to more age groups with time. After all, Baby Boomers are the cohort with the most aches and pains and who have the most trouble sleeping! Boomers are currently frequent users of marijuana in other formats and the development of beverage formats appealing to the older demographic will likely be the key to reaching more of this group.

Making a Successful Beverage Brand

The most important and perhaps the trickiest part of creating a successful cannabis/hemp brand is formulating a functional beverage that also tastes great. This is because both hemp and cannabis react differently with varying flavor components. Carbonation can heighten the “peppery” effect of the cannabinoids. Glass, aluminum, and PET packaging have plusses and minuses. Getting it right requires coordinating all the moving parts so entrepreneurs will find there is a real benefit to working with professionals with practical beverage experience in this relatively new market.

Your hemp/cannabis extract supplier must be ready to work closely with you to “mass customize” their offerings because a certain formulation that works wonderfully in one type of beverage can be a total dud in another. Farmington Research has worked with entrepreneurs on an amazing range of applications including juices, teas, drinks shots, natural spring waters, sparkling waters, and drink powder sticks. Every single format has required a custom solution – even among flavor variations within a product lineup. We’d be glad to send you a sample of extract used in hemp/cannabis drinks but, more importantly, we’d love to work on your project in its earliest stages so we can help you create a great product!

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Poll: Two-Thirds of Louisianans Support Legalizing Cannabis in the State

3/30/2021

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Two-thirds – 67% – of Louisiana residents support adult-use cannabis legalization in the state, according to a JMC Analytics and Polling survey published yesterday. The firm found 54% support for the reforms in a poll last year.

Just about a quarter of respondents said that cannabis use and possession should remain outlawed in the state – a 6% drop from the firm’s 2020 polling. Sixteen percent of those surveyed in the March poll said they only favored medical cannabis legalization, with 8% wanting both to remain prohibited and 9% undecided.

A supermajority of respondents (75%) also favored allowing the use of smokable forms of cannabis in the state’s medical cannabis program, which currently only allows oils.

Another 65% of respondents said they were more likely to support a candidate for office if that person wanted to reform the state’s cannabis laws; 17% it would make them less likely to support a candidate, with 19% unsure.

The poll found 60% of Republicans supported legalizing use and possession, along with 67% of Democrats and 79% of those registered with another party of independents. The majority of Democrats (66%) and Republicans (56%) also said they were more likely to support a candidate that backs broad legalization.

The poll was conducted March 22-23 and included 1,160 respondents. Of those polled, 44% identified as an Evangelical Christian.

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New Mexico Gov. Calls Special Session Focused on Cannabis Legalization

3/29/2021

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New Mexico Gov. Michelle Lujan Grisham (D) has officially called lawmakers back for a special session specifically to reach a deal on cannabis legalization, the Associated Press reports. The session is set to begin tomorrow.

Grisham had indicated that she planned to call lawmakers back to the Capitol after they failed to approve the legalization package before the end of the state’s legislative session.

In late February, the state House of Representatives approved the reforms but the bill stalled in the Senate due to disagreements over taxation, licensing, and criminal justice provisions. Those issues persist but Grisham and legislative leaders hope to come to an agreement during the special session, which can only last 30 days.

Republican leaders in the statehouse seem amenable to two complimentary bills – one with the industry regulations and oversight and another with the criminal justice reforms related to legalization, the report says. Republicans want a bill with strong employers’ rights to limit cannabis use by employees, cannabis impairment enforcement on roadways, unlimited business licenses, and low taxes.

House Republicans also criticized Grisham for calling the session in the run-up to Good Friday and Easter celebrations.

The bill approved by the House includes strong social justice provisions – including automatic expungement – and allows for micro-licenses.

In comments to Sandoval County Democrats earlier this month, Grisham said she was not going to wait another year for the reforms and was confident lawmakers would come to a legalization deal during the special session.

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Iowa CBD Shops Re-Open After Owner’s Arrest

3/29/2021

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A chain of CBD shops in Iowa has finally reopened after being shut down by the police in 2019, the Des Moines Register reports. The shops were first shut down when the owner, Lacie Navin, was arrested for drug charges.

Charged with “controlled substance violations and “unlawful substance tax requirement,” Navin — who became a passionate promoter of CBD after seeing how it helped her dad with his fibromyalgia — labored at six jobs to pay rent on three locations for “Your CBD Store” while she worked towards securing an Iowa state hemp license, according to the report.

“I know I’m on the right side of history, I know that these products help people and I know they’re organic and they’re good. That for me was the driving force to say I’m not letting go because what I’m doing is right.” — Lacie Navin, via The Des Moines Register

Navin was arrested and her stores, located in Valley Junction, Urbandale, and Ankeny, were shut down in 2019. But last year, Gov. Kim Reynolds (R) signed a law paving the way for the Department of Inspections and Appeals to create a hemp licensing program. Lacy says she cannot sell Delta 8 THC, however, her store does provide CBD, CBG, and CBN products made from USDA-certified organic hemp.

“We want to make sure everyone’s getting safe products and everyone’s complying with the rules that Iowa’s made in terms of CBD and what’s allowable with hemp,” she told the Register.

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New Jersey Requires Cops to Notify Parents of Minors Caught with Cannabis

3/29/2021

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New Jersey Gov. Phil Murphy (D) on Friday signed another “cleanup” bill for the state’s cannabis legalization regime, requiring parental notification when minors are caught illegally possessing cannabis, the Associated Press reports. Under the law signed by Murphy last month, parents would not be notified the first time a minor was caught with cannabis.

According to the bill text, the measure requires law enforcement officers to provide written warnings to parents. The warning must include the person’s name, address, date of birth, a copy of the warning containing this information, and a sworn statement that includes a description of the relevant facts and circumstances supporting the officer’s determination that the person committed the violation.

Under the legalization law, parents and guardians would have only been notified upon a minor’s second offense. For subsequent offenses, the law requires underage offenders to be provided with informational materials on community substance abuse programs for their second possession offense, and on the third offense, the warning is sent to the community drug treatment program along with the parents or guardians of the offender.

Following final approval of the legalization law by the governor, New Jersey Attorney General Gurbir S. Grewal directed state, county, and municipal prosecutors to dismiss any cannabis-related charges for offenses no longer illegal under the reforms. The order also prohibits officers from using the odor of cannabis – either burnt or raw – as a “reasonable articulable suspicion” to initiate a stop or search of a person or their vehicle to determine a violation of a possession offense or a fourth-degree distribution offense.

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France Launches Two-Year Medical Cannabis Experiment with 3,000 Patients

3/29/2021

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France’s two-year medical cannabis experiment launches today as the government seeks to study the positive and side effects of the plans and its derivatives, Morocco World News reports. The experiment will include 3,000 patients with chronic diseases and specialist physicians in pain, oncology, neurology, epilepsy, multiple sclerosis, and palliative care.

France’s Health Ministry has said that the experiment aims to gather data about the effectiveness of medical cannabis with the potential to legalize it for therapeutic use nationally. Nearly 20 European Union countries allow medical cannabis programs. The French experiment was initially set for September 2020 but was delayed due to the coronavirus pandemic.

MP Robin Reda, the chairman of the parliamentary committee on cannabis from the right-wing party Les Républicains, has criticized the medical cannabis experiment program, contending that the government would “do everything it can to drag its feet and ensure that as few people as possible get to use marijuana on this experimental basis.” Reda has said that “no one should be happy” with the nation’s cannabis policies which he described as “repressive” and “clearly not working.”

In January, the French government launched a public consultation about cannabis legalization asking citizens about their views on cannabis and what government policies people would prefer. That comment period ended February 28 and the results have not yet been made publicly available.

Editor’s note (3/31): A previous version of this article incorrectly stated that France’s medical cannabis program would limit the THC in cannabis products to just 0.2 percent. In actuality, products are anticipated to include a wide range of THC and CBD, with levels reaching up to at least 8 percent. We regret the error.

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