Geomat: Water Processing Solutions for Cannabis Facilities

1/05/2021

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Geomat is an environmental compliance company that has specialized in wastewater solutions for almost three decades. Most recently, the team is solving issues in the cannabis industry, simplifying large cleaning tasks and ensuring compliant wastewater management. While moving through the marine, car rental, car wash, and cannabis industries, the goal of Geomat has always been to help companies operate in compliance with environmental regulations. Geomat allows these companies to capture, clean, and reuse their water, while complying with federal and state environmental regulations.

Company Founder Al DeChard was refinishing boats for a living when their team noticed that many vessels being manufactured outside of the states contained high quantities of lead. As they worked, the team had to experiment with various materials and tools in an effort to stop environmentally hazardous runoff from leaching into the sea. In that time, DeChard discovered a proprietary solution to treating wastewater that has since been essential in each of the industries Geomat works in.

“I believe this industry is realizing how important it is for water containment and recycling. As states become more stringent with water runoff regulations, it’s important for facilities to have the best viable solution,” said company founder Al DeChard.

When beginning in the cannabis industry, DeChard spent time with cultivators to learn about their challenges and found that wastewater compliance with city ordinances was a major concern. Some companies turn to reverse osmosis to solve this, but this creates a byproduct that still requires disposal. For every five gallons of water treated with reverse osmosis, four gallons of wastewater are produced. Instead, Geomat has two options for cultivation clients looking to treat and reuse water from their site. Their systems can go back into municipalities to be treated by city water systems, but most often clients opt for an on-site, closed-loop system.

In cannabis cultivation sites, each room and the tools within it have to be cleaned to almost surgical standards after harvest. A lot of wastewater is accumulated while cleaning trays and other tools used in cultivation which is time-consuming and awkward, causing a lot of water runoff. Flipping a room after harvest can be expedited when using Geomat products and the company continues to work on meeting cultivator needs. DeChard works directly with clients to learn about their specialized dilemmas in order to shape the Geomat product into an efficient solution.

The Geomat closed-loop system sends used water back into a holding tank where it goes through a proprietary cleaning process. Then the float valve introduces fresh water back into the system to fill the tank back to capacity. When it comes to cleaning tools, DeChard noted that there was a significant amount of water used during this process, so he found a turnkey solution. Geomat builds 10 x 20 ft. cleaning stations built specifically to fit tray tables used to hold and feed cannabis plants. The stations collect overspray from the cleaning process to be treated and reused, enabling all water used in the process to be recycled. Even though it covers a large area, the whole cleaning station can be picked up with a forklift and moved to grow alongside a cultivation site as they expand.

“Geomat is looking forward to helping grow facilities recycle the precious commodity that is water, while helping achieve environmental compliance in the workplace,” DeChard elaborated.

These solutions are novel and necessary for the rapidly growing industry. Electricity and water are two of the most-utilized resources in cannabis cultivation and Al DeChard realized that any way to save water will improve the industry’s ROI. These solutions are not only turnkey, but they’re scaleable — and they demonstrate the love that DeChard has for solving problems. While the turnkey solution works for most, the company founder also enjoys doing custom work and actually has some new ideas to roll out in the next year. As the industry recognizes a growing need for efficient and compliant wastewater management, Geomat continues to innovate — and, in turn, more and more cannabis operators are relying on their proprietary technologies to get the job done right.

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Cannabis Sales Surpass $1B In Illinois

1/05/2021

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Combined adult-use and medical cannabis sales topped $1 billion in Illinois, with recreational sales nearing $670 million and medical sales reaching $331 million. Adult-use sales launched in the state on Jan. 1, 2020.

December 2020 recreational cannabis sales were the highest recorded in the state all year – $86.86 million in all. The previous record was October’s $75.3 million.

In all, Illinois residents bought the bulk of cannabis in the state throughout the year – $496.4 million – compared to $172.6 million in purchases from out-of-state resident sales. There are currently 82 dispensaries licensed to sell cannabis to adults in the state. The average price per ounce in the state was $352, according to priceofweed.com.

Through November, the state Department of Revenue reported $150 million in adult-use derived taxes.

State officials on New Year’s Eve announced the expungement of half a million cannabis-related criminal records, a benchmark that was not expected – or legally required – to be completed until 2025.

It’s worth noting that none of the state’s licensed cannabusinesses are majority-owned by a person of color. In June, regulators indicated that social-equity licenses would be awarded in July, but those licenses did not materialize as 2020 came to a close.

According to a Chicago Tribune report, voters in six of seven Chicago suburbs approved ballot questions allowing legal cannabis sales in 2020. Those approvals, though, do not include provisions for social-equity licensing. Cresco Labs, a multi-state operator, last week became the first company to open 10 dispensaries in the state, according to Biz Journals, highlighting the outsized role big corporations have in the Illinois cannabis industry.

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California Dispensary Settles with Union for $75k in Back Pay

1/05/2021

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The United Food and Commercial Workers California chapter representing workers at Have-a-Heart dispensaries in Oakland and Santa Cruz have reached a $75,000 back pay settlement with the company for workers who originally missed out on union raises that were due January 2020.

UFCW5 had reached a contract settlement with Have-a-Heart in January of last year; however, soon after Have-a-Heart’s original owners sold their interest in the company’s California operations to Harvest Health, who in turn sold it to High Times Holding Corp. Not three months later. Both Harvest and High Times refused to recognize the January collective bargaining agreement, the union said in a press release, which led to UFCW5 filing charges with the National Labor Relations Board (NLRB) in April 2020.

Jim Araby, UFCW5 director of strategic campaigns, said less than 50 workers were involved in the “hard-fought settlement.” He added that “it was important to show the cannabis industry, even if you sell your company, if there is a union contract you must recognize it.”

A spokesperson for Harvest told Marijuana Business Daily that the company made “a minor contribution to the settlement in the interest of reaching an agreement and moving forward.”

In October, the regional director for NLRB Region 1, which covers New England, determined that the majority of employees at a cannabis cultivation and processing facility are “agricultural laborers” under the federal National Labor Relations Act and, therefore, not subject to federal labor laws related to unionizing. The decision allows unions in Region 1 to organize workers under state rather than federal law but also permits states to deny union rights to agricultural workers if they are exempt from federal labor laws.

The UFCW represents more than 10,000 cannabis industry workers nationwide.

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GOP Lawmaker Proposes Cannabis Legalization Bill in Missouri

1/05/2021

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Republican Missouri State Rep. Shamed Dogan has pre-filed legislation that would put an adult-use ballot question to voters in 2022, the Missouri Times reports. The proposal – a constitutional amendment – would regulate cannabis similar to alcohol in the state, allowing use and possession by adults 21-and-older.

The “Smarter and Safer Missouri Act” sets adult-use sales taxes at 12% while medical cannabis taxes would remain at 4%. Funds derived from the program would be used for infrastructure, veterans, and drug treatment programs. The bill also removes caps on cannabis industry licenses.

In an interview with the Times, Dogan described the war on drugs as a “failure” with the “fight against marijuana” as the “most glaring failure” of prohibitionist policies.

“We’ve spent billions of dollars fighting against a drug which is, in the grand scheme of things, the least harmful on the list of what is currently illegal. We spend the most resources and time on it, and it’s time that ends. The public has come to that conclusion, but our laws have been pretty slow in catching up with that.” – Dogan to the Times

In 2018, Missouri voters approved the medical cannabis legalization bill with 65% of the vote. A similar adult-use legalization bill was proposed last session by Democratic Rep. Peter Merideth but was never voted on. Dogan is the first GOP member in the state to introduce legalization legislation.

Legalization activists had sought to put the legalization question to voters during last November’s General Election; however, the effort stalled amid the state’s pandemic-related stay-at-home order in March.

 

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New Mexico Court Affirms Inmates’ Right to Medical Cannabis

1/04/2021

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A New Mexico district court judge ruled last week that Bernalillo County’s Metropolitan Detention Center must allow inmates who qualify for medical cannabis access to their medicine, the Santa Fe New Mexican reports.

The case stems from a 2019 drunk-driving conviction of Joe Montaño, who was allowed to serve his 90-day jail sentence from home. One of the conditions, though, was that Montaño not use any illegal drugs. Montaño, a registered patient in the state, did use cannabis as recommended by his physician and was ultimately jailed for 30 days for violating the terms of his house arrest.

Attorneys for Bernalillo County argued that because cannabis remains federally illegal, Montaño’s use “was a violation of law contrary to his agreement to comply with all city, county, state and federal laws and ordinances.”

Second Judicial District Judge Lucy Solimon ruled that the state’s medical cannabis law allowed people in state custody – whether in jail, on house arrest, or probation – who qualify for the program to access medical cannabis.

State Sen. Jacob Candelaria (D), who was also the attorney representing Montaño, said the ruling makes clear that there “is no discretion under the Medical Cannabis Act” with regard to allowing those in the state criminal justice system access to the program.

“While the criminal industrial complex may have pushback or some concerns – take those to the Legislature. Because until such time as the Legislature changes the law, the law is clear: You must under existing law provide incarcerated persons with the ability to access medical cannabis free from penalty. That’s the law.” – Candelaria, in an interview with the New Mexican

In 2019, lawmakers approved a bill allowing medical cannabis access for individuals “serving a period of probation or parole or who is in the custody or under the supervision of the state or a local government pending trial as part of a community supervision program.” The state Corrections Department subsequently issued guidance allowing registered patients on parole or probation to use legally-obtained cannabis without penalty.

Candelaria indicated he plans to send notice to the state’s jails and prisons asking them to comply with the 2nd Circuit ruling. He added that if the jails or prisons try to “make things more difficult…the remedy will be more litigation.”

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Illinois Expunges Half a Million Cannabis Records on New Year’s Eve

1/04/2021

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The Illinois State Police and Gov. J.B. Pritzker on New Year’s Eve cleared more than a half-million cannabis-related criminal records, the Chicago Sun-Times reports. The Democratic governor issued pardons for 9,129 low-level charges, while the ISP expunged 492,192 bringing the total to 501,321.

The ISP action was required by the state’s adult-use cannabis law, with a Jan. 1, 2025 deadline, meaning the agency completed the process four years early. In a tweet, Pritzker said he had pardoned a total of 20,000 conviction records since the law’s passage in 2019. The law required a total of 47,000 records to be expunged by Jan. 1, 2021.

“We will never be able to fully remedy the depth of the damage in communities of color, who have disproportionately shouldered this burden. But we can govern with the courage to admit the mistakes of our past – and the decency to set a better path forward.” – Pritzker via Twitter

Toi Hutchinson, senior advisor to the governor for cannabis control, said in a statement she is “heartened by the progress we have made towards undoing the harms dealt by the failed war on drugs.”

“We are one year into what will be an ongoing effort to correct historic wrongdoings,” she said in a statement. “The administration remains committed to working with legislators to address any challenges to equity and on building an industry that re-invests in our state’s communities.”

Under the legislature-approved law, 25% of cannabis-derived revenues are directed to communities that have been “disproportionately impacted by the justice system through the Restore, Reinvest and Renew Program.” Officials told NBC Chicago that the program will grant more than $25 million to organizations focused on underserved communities in the coming weeks.

Cannabis sales in the state have totaled $582.2 million since adult-use sales began on Jan. 1, 2020.

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Activists Distribute Cannabis Pardon Applications via Old News Bins

1/04/2021

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Activists in Montgomery County, Pennsylvania are using old newspaper boxes to distribute pardon applications for cannabis convictions, according to National Public Radio-affiliate WHYY. The effort is led by Montco NORML, the county chapter of the National Organization for the Reform of Marijuana Laws, and TerraVida Victims of the War on Drugs (VOWD), the non-profit arm of the medical cannabis dispensary chain.

To date, the activists have distributed the pardon application to more than 800 people. They have installed two newspaper boxes with applications – one in front of the county courthouse in Norristown, and another in front of the Lansdale Public Library.

In an interview with WHYY, Lt. Gov. John Fetterman, who supports cannabis law reforms in the state, called the application distribution scheme “fantastic.”

“We already have an expedited marijuana pardon protocol in place, where if it meets a couple key criteria they automatically advance through. But what we’re also looking into is the constitutionality of doing that on a macro basis. … If you’ve got a stupid weed conviction on your record, you’ve got to get it off. It’s crazy not to. There’s never a better time and, we have an expedited process for that.” – Fetterman, to WHYY

Geoff Smith, the director of Montco NORML, said that advocates fill the bins “every single week” and they are “almost empty every week.” He added that the boxes are free and readily available.

Cathie Cashman, head of TerraVida VOWD, called the newspaper bins “a great win” for the organization.

“We really can’t lose the idea that there is this whole social justice piece and this whole social equity piece that we need to continually keep in front of us, because this isn’t just a venture capitalist game here,” Cashman said in the report. “This isn’t just for people to get richer off of. We have to remember that there’s this social justice aspect that it is our responsibility as owners and operators in the state to support and push forward.”

Organizers said they ultimately plan to put similar boxes throughout the state. The next bin is expected to be installed this week at SEPTA’s Ambler Train Station.

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What Is CBG and What Does It Do?

1/04/2021

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In the world of cannabis compounds, tetrahydrocannabinol (THC) and cannabidiol (CBD) reign supreme. They’re the two major cannabinoids that we’ve all grown familiar with since their discovery in the early 19th century. While THC and CBD have no doubt been the most critical compounds thus far, progressions in science have taught us that they are not the only catalysts for producing the effects that we feel from cannabis.

Now more than ever, cannabis producers and consumers are becoming more educated about cannabinoids, terpenes, and our endocannabinoid systems. And because of this, we’re beginning to learn more about other cannabinoids and their potential medical benefits. One such cannabinoid that’s seeing a surge of attention is cannabigerol, or CBG.

What is CBG?

Cannabigerol is a non-psychoactive cannabinoid that was first discovered in the 1960’s. Though a minor cannabinoid, due to the very small amounts of it found in cannabis, it is still one of the most important. Why? Because cannabigerolic acid (CBGA) is what converts into THCA, CBDA, and CBCA; and THCA and CBDA which then becomes THC and CBD — the compounds we know for getting us high and providing certain non-psychoactive therapeutic experiences, respectively.

Though scientists have known of cannabigerol for decades now, there is still so much more research needed before anyone can come to any concrete conclusions about the exact effects CBG may have. However, certain experiments and trials conducted on mice and cats have given way to a few theories on how CBG may be able to help humans. Many of CBG’s benefits mirror those of CBD and also cannabinol (CBN). Here are some of CBG’s potential medical benefits:

CBG as anti-inflammatory

Research has shown that cannabigerol could be a helpful anti-inflammatory and a potential treatment against inflammatory bowel diseases like Crohn’s Disease. IBD is an incurable disease that affects over 1.6 million people. A study published in 2013 injected mice with colitis, then tested the effects of cannabigerol on them. It concluded that “CBG attenuated murine colitis, reduced nitric oxide production in macrophages, and reduced ROS formation in intestinal epithelial cells.” A separate study showed that CBG helped mice with encephalomyelitis (inflammation of the brain and spinal cord).

CBG as a Huntington’s Disease treatment

Huntington’s disease is a rare, progressive brain disorder that gradually kills nerve cells in the brain. As the brain breaks down, so do the host’s physical and mental abilities. There is currently no cure for Huntington’s, but two studies — one in 2014 and another published in 2016 — show that CBG might be able to help slow down its effects.

CBG as an appetite stimulant

Many of cannabigerol’s benefits come down to being able to treat the side effects of various cancers. Research has shown that CBG could help stimulate appetite, and help promote the physical health of cancer patients. A study published in 2017 reports that a cannabigerol-rich Cannabis sativa extract, devoid of THC, elicits hyperphagia in rats. Hyperphagia is the strong desire to eat, which often leads to overeating.

CBG as a cancer fighter

A plethora of studies has shown that cannabis in general, with its complete profile of cannabinoids and terpenes, can be helpful against cancer. A study published in 2014 showed that colon carcinogenesis in mice was inhibited by the cannabigerol. It concludes that CBG should be considered in colorectal cancer prevention and cure.

Though these studies indicate CBG could be a powerful tool in medicine, it’s important to remember that no clinical research has been done on humans.

CBG-rich cannabis strains are difficult to come by because CBG will turn into the more common THC or CBD cannabinoids as time passes.

Which cannabis strains and products are high in CBG?

While CBG is becoming a highly sought-after cannabinoid in the current market, there are still very few strains that contain more than 1% CBG. As mentioned earlier, CBG usually turns into THC or CBD. However, when breeders extract cannabinoids from cannabis plants before they finish flowering, they are able to capture CBG in higher amounts.

Additionally, many hemp-derived CBG products have started to pop up. Hemp is just like the cannabis plant but contains 0.3% or less THC. Like cannabis, it contains hundreds of other cannabinoids, including CBG. With the federal legalization of industrial hemp, producers and processors are now able to isolate this compound and bring to market a slew of CBG oils, CBG tinctures, CBG vape pens, CBG topicals, and even CBD edibles. When trying these products, and testing CBG’s effect on your endocannabinoid system, remember to only purchase products from companies that can provide a certificate of analysis from a reputable lab, and a complete list of the product’s ingredients.

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Cannabis In 2021: What Do the Election Wins Mean?

1/01/2021

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The cannabis legalization movement counted major wins in the 2020 U.S. General Election and a President-Elect Joe Biden, whose campaign included a platform of cannabis decriminalization and expungements, could dictate a national shift in both policy and public attitude towards the plant starting next year.

Heading into the election, cannabis was already legal for adult use in 11 states. By January 2021, possession and sales will be newly legal in Arizona, Montana, and New Jersey after voters there opted to end prohibition — and by July, South Dakota’s new market will have come online, as well. In nearly all respects, 2021 could shape up to be an enormous year for the ever-growing cannabis space.

States are a roadmap for federal change

With the latest cannabis reforms being propelled by widespread bipartisan support, it’s possible the newly legalized states could be a driving force for federal reforms.

“With more states configuring the regulatory mechanisms in place, it’ll set a roadmap on the federal level for successful legalization,” said Al Harrington, entrepreneur and former pro basketball player behind the Viola cannabis brand. “When we understand what works and what doesn’t, the knowledge required to create a smooth transition also brings us closer to federal legalization.”

Al Harrington, former NBA star and the CEO of Viola.

In fact, within a month of the election, the U.S. House of Representatives passed the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act, which aims to end federal cannabis prohibition. It was the first time that a federal congressional body considered and approved a cannabis legalization bill. However, while the House vote was exciting for cannabis activists, any hope for the bill’s survival will depend on Democrats’ ability to take control of the Senate, as the current majority leader Sen. Mitch McConnell (R-Kentucky) has made it clear he will not allow the chamber to consider a legalization bill.

However, despite Sen. McConnell’s staunch opposition, Nick Kovacevich — CEO of KushCo — doubts that even Republican representatives will be willing to vote against cannabis reforms much longer for fear of alienating voters.

“The voters have spoken loudly in support of legalizing marijuana. When federal politicians saw red states like Arizona, South Dakota, Montana, and Mississippi pass legalization with overwhelming support – with more votes than either presidential candidate – this changed their mindset on cannabis.” — Kovacevich, in a statement to Ganjapreneur

Federal lawmakers may face backlash

While addressing the House floor on December 7, 2020, Rep. Earl Blumenauer (D-Oregon) chastised his colleagues who would not support the MORE Act, which a Congressional Budget Office report shows would “reduce 73,000 person-years of prison time” and “increase revenues by $13.7 billion.”

“It would provide $3 billion for job training and legal aid to people harmed by the war on drugs,” Rep. Blumenauer said. “While doing all of this, it would reduce the Federal deficit by $7.344 billion.”

“Even if you don’t care about reducing the damage to Black and Brown Americans or honoring the will of the people, the economics make it clear: Once again, the people are right, and the policy deserves strong congressional support.” — Oregon Rep. Earl Blumenauer, in a statement

U.S. Rep. Cheri Bustos (D-Illinois) is already facing scrutiny for being one of just six House Democrats who voted against the MORE Act. For her part, Rep. Bustos claims she voted no because the bill lacked clarity and she cited her history of voting for the SAFE Banking Act (which aimed to give banking access to the cannabis industry) and other cannabis research legislation to demonstrate that she’s not anti-cannabis.

Despite such statements, however, some constituents were disappointed and confused by her vote against federal legalization — especially considering that her home state of Illinois has already legalized. And, with cannabis legalization becoming a more and more bipartisan issue, it’s easy to see how other representatives, even in conservative-leaning states, could be subject to similar scrutinies.

States looking for new revenue

Many Americans have expressed hope that by regulating the cannabis industry, states will be able to boost their economies — particularly amid the fallout and deficits from the ongoing coronavirus pandemic. In California, for example, the state netted $134.9 million in cannabis tax revenue during just the first quarter of 2020. Illinois cannabis tax collection, meanwhile, reached $100 million after less than a year of adult-use sales. And in 2019, five years after becoming the first state to legalize, Colorado’s collected cannabis taxes passed $1 billion.

For potential East Coast and New England markets in particular, the idea of new tax revenue is especially attractive as new markets will get the first go at regional market share as they attract residents (and therefore revenue) from neighboring states, according to Patricia Baldwin Gregory, general counsel for Keystone Canna Remedies.

After New Jersey legalized, for example, “The pressure is now on other states in the region, such as Pennsylvania, New York, and even Connecticut to also legalize adult use,” she said. “Otherwise, they will lose significant tax revenues to New Jersey as customers cross state lines to purchase cannabis.”

“The population in the Northeast equates to the aggregate population in the adult-use states of California, Oregon, Washington, and Colorado. Projected sales for these Western states in 2020 is approximately $8B representing approximately 50% of the entire US industry .While initially, the Northeast is not likely to produce the level of sales seen in the mature Western markets, over time they will rival them and consequently move the needle significantly.” — Gregory, in a statement to Ganjapreneur

Cannabis reforms could bolster a COVID response

To many experts, legalization offers unique economic opportunities after an extremely difficult year.

“The economy is in desperate need of jobs and tax revenue,” said Kovacevich, and “cannabis has (dollar for dollar) a greater impact on the US economy than virtually any other industry.”

“First off, its effective tax rate is near 25% across the country,” he said. “Second, 100% of the cannabis sold in the US is grown, packaged, distributed, and sold via US-owned businesses, employing 100% US citizens. Other industries rely on foreign imports and outsourced labor.”

As Kovacevich mentioned, taxes are just one way that legalization will bolster local economies — the implementation of a regulated market also provides local jobs in a year that many have found themselves suddenly and unexpectedly unemployed. According to a Leafly jobs report, employment in the cannabis industry is growing 15% year-over-year. As of now, the adult-use and medical cannabis markets support 243,700 jobs, having added 33,700 new jobs in the last year despite the challenges posed by COVID-19.

Many cannabis industry leaders and entrepreneurs feel like the pandemic year has helped validate the space in the public’s eye.

“With the evidence of dispensaries being listed as essential businesses, it’s clear [to consumers] that this industry is financially resilient,” Harrington told Ganjapreneur. “It then makes the case to expedite the path towards federal legalization. The business boom during such a devastating crisis means that there’s a lot of opportunity to generate prosperity in our economy. We’ll see massive GDP growth from tax revenue and more new businesses entering the marketplace.”

As we head into 2021 it is likely that even more voters will express their support for legalization, pushing the already majority-support among Americans closer and closer to a supermajority. If representatives are truly speaking for the people, they will soon have no choice but to legalize — or at the very least decriminalize — cannabis at the federal level.

 

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Pennsylvania K-12 Students Will Be Taught About the Benefits of Hemp

12/31/2020

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As part of the daily demonstrations at next year’s Pennsylvania Farm Show, K-12 students will learn about plastics made from sustainable materials, including hemp. The show also includes information on growing plants with hydroponics.

The 2021 Farm Show will be held virtually January 9-16 due to the coronavirus pandemic. Its theme is “Cultivating Tomorrow.”

Agriculture Secretary Russell Redding said that the show “offers learning experiences and exposure to a growing field with real-world, rewarding opportunities.”

“Wherever you are on your career path – whether you’re looking for hands-on learning, career inspiration, or you just want to know more about your food and the challenges facing those who produce it – the 2021 virtual Farm Show will offer opportunities to learn and engage with agriculture and the science, technology, engineering driving it.” – Redding in a press release

It isn’t the first time hemp will be featured at the state-sponsored agriculture showcase; last year’s in-person show had hemp products for sale, including teas and kitty litter, according to PennLive. The show also had a hemp exhibit that included a small home made from hemp and a “hemp-mobile.”

In 2020, the Pennsylvania Agriculture Department issued 510 hemp cultivation permits and its first round of hemp processing permits – 65 in all. The state issued its first hemp-growing licenses in 2017 – a total of just 14 for 36 total acres.

The Agriculture Department is currently accepting hemp industry applications for 2021 permits.

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Illinois Judge Blocks Effort to Resume Cannabis Licensing

12/31/2020

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An Illinois judge has ruled that Democratic Gov. J.B. Pritzker’s decision to delay issuing 40 craft cannabis cultivation licenses amid the pandemic is lawful, the Chicago Tribune reports. The plaintiffs, the Illinois Craft Cannabis Association, had argued that the governor’s decision broke the law requiring the permits to be issued by July 1.

Judge Allen Walker determined that Pritzker’s initial emergency order citing pandemic-related delays in reviewing the applications was insufficient to delay the issuance of the licenses under the law. However, Walker ruled that a subsequent executive order explaining the delay was necessary because the pandemic had forced agriculture officials to concentrate on the food supply chain, and oversight of the state’s meat and livestock facilities was valid. The Illinois Department of Agriculture is responsible for reviewing the cannabis licenses.

Meatpacking facilities in the state were hit hard by the virus in April and May.

“While (the later order) does not explicitly say: ‘IDOA’s issuing cannabis licenses by the (deadline) would have the effect of diverting needed resources from the pandemic effort thus making it more difficult for the governor to cope with the COVID-19 crisis …’ that is the point implicitly being made.” – Judge Walker in the decision, via the Tribune

The administration has also delayed issuing cannabis infuser and transporter licenses, and licenses for 75 new adult-use cannabis dispensaries, which were to be awarded May 1 under the law.

Paul Magelli, spokesman for the Illinois Craft Cannabis Association, said the organization is “considering an appeal given the weakness of the judge’s order.”

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Pennsylvania Awards $2M Grant to Cannabis Brand for New Facilities

12/31/2020

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Pennsylvania has awarded Pure Penn – which is owned by Florida-based Trulieve – a $2 million grant to expand its facility in McKeesport, KDKA reports. It’s the first time the state has awarded tax dollars to a medical cannabis company for upgrades.

Gabe Perlow, the president of Pure Penn, told KDKA that he expects medical cannabis “will be the next kind of big industry to revitalize and help drive economic development for the city.” Perlow suggested the site would employ 100 and “possibly more.” Currently, there are 77 employed at the facility.

In the 1960s, the National Tube Steel Mill in McKeesport employed about 10,000 people and the city had about 45,000 residents. Trulieve’s cultivation and manufacturing operation uses the old steel mill but barely 19,000 people still live in the city, the report says.

Rep. Austin Davis, a Democrat from the city, told KDKA that he “absolutely” believes the grant is a “proper use of” tax dollars.

“We’re creating jobs. We’re stimulating the economy in a region that has struggled significantly since the collapse of the steel industry.” – Davis in an interview with KDKA

Democratic Sen. Jim Brewster, a former McKeesport mayor, said the grant is “completely transparent … heavily scrutinized and governed for the public to know what’s being done.”

Davis added that the “goal” is for the Mon Valley – which includes McKeesport – to become the cannabis cultivation capital of Pennsylvania and perhaps the region.

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Arizona Adult-Use Sales Could Begin in March

12/30/2020

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Adult-use cannabis sales in Arizona could commence as early as March with existing medical cannabis dispensaries getting licenses first, followed by 26 social equity licensees, cannabis attorney Tom Dean said on KTAR News’ Gaydos and Chad show. Dean noted, however, that officials have not clarified what the criteria for those social equity licenses will be.

“People will be eligible for one of those types of licenses if they are a member of a community that has been disproportionally impacted by the enforcement of marijuana laws in the past. So perhaps certain ethnic minorities or perhaps certain socioeconomic categories.” – Dean to KTAR News

The Department of Health Services is tasked with issuing the first round of licenses.

Portions of the law took effect the minute Gov. Doug Ducey (R) certified the election results, including personal possession and cultivation for adults 21-and-older. Following the election, the Maricopa County Attorney’s Office (MCAO) indicated it would start dismissing cannabis charges that are now legal under the voter-approved law. According to KTAR News, there are more than 5,000 cases eligible for dismissal in metro Phoenix alone.

Jennifer Liewer, a spokeswoman for the MCAO said that “a significant number” of cases with cannabis-related charges “will include other felony charges” that will not be dismissed along with the low-level cannabis charge.

Dean warned, however, that citizens must be sure to remain within the letter of the legalization law because Arizona’s cannabis penalties not covered by the reforms remain “pretty harsh.”

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Illinois County Expunges 1,600 Low-Level Cannabis Cases

12/30/2020

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Will County, Illinois Attorney James Glasgow announced on Tuesday that the chief judge of the 19th Circuit Court approved a motion to expunge records for 1,653 cases for misdemeanor possession of less than 30 grams.

In a press release, Glasgow said the move “will help these individuals move forward with their lives and place their convictions permanently behind them.”

“Today’s Order is a step in removing barriers to those who have been impacted as a result of having a criminal record based on these low-level cannabis possession cases. Back in 1998, I successfully wrote the grant creating Will County’s Drug Court, and spearheaded each of our other Problem Solving Courts as well. I truly understand the importance of removing obstacles and providing opportunities. That is exactly what today’s Order will do for those whose records will be expunged.” – Glasgow in a statement

Chief Judge Christopher M. Kennedy, who signed the order, said the reforms show “Restorative justice is important to Will County and to our society as a whole.”

“These expungements demonstrate our commitment to this principle,” he said.

The voter-approved law also allows dismissal of Class 4 felony and misdemeanor cannabis delivery offenses, but the county’s motion to vacate and expunge addresses simple possession cases that are not associated with felony charges or offenses outlined by the Rights of Crime Victims and Witnesses Act, the Attorney’s Office said. The order includes cases only from Jan. 1, 2013 through June 25, 2019. The remaining cases in the county will be reviewed by Jan. 1, 2023 for offenses between Jan. 1, 2000 and Jan. 1, 2013; and Jan. 1, 2025 for offenses that occurred prior to Jan. 1, 2000.

On January 2, Democratic Gov. J.B. Pritzker issued 11,017 pardons for individuals with low-level cannabis convictions. However, the Chicago Tribune reports that there are more than 700,000 cases in the state that likely qualify for expungement. Earlier this year, Cook County officials worked with Code for America to identify and clear 2,200 eligible cases. Code for America has also worked to identify and expunge cases in California. McHenry County officials this year also expunged about 1,900 low-level cannabis cases, according to the Tribune.

However, the Tribune reports that few counties are taking the initiative to clear cannabis-related records. The Lake County Attorney’s Office indicated that it had received and granted only two requests for expungement.

The law allows felony cases involving up to 500 grams to be expunged – there are an estimated 71,000 such cases in the state – however, advocates say few of those cases have been cleared due to lack of familiarity of the process by citizens and courts.

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How Does Cannabis Affect Focus and Creativity?

12/30/2020

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Jointly is a cannabis wellness app that launched in April 2020. Jointly’s mission is to help people discover purposeful cannabis consumption. Purposeful cannabis consumption starts with the question: why do you use cannabis?

Many people use cannabis to enhance their creativity and focus. What does that look like?

It could be a computer programmer who finds that consuming a 1:1 CBD-THC edible in the morning settles her nerves for the day and opens her mind up to new solutions; a 70-year-old triathlete who discovers that a few drops of a sativa tincture allow him to stay focused during grueling bike rides; or a Ph.D. student who breaks up long hours in the lab with a few tokes from a high-CBD joint.

Is cannabis the right choice for you to enhance your focus and creativity? Jointly can help you find out! But first let’s review what is known about cannabis, focus, and creativity.

Is Cannabis a Cognitive Booster?

In the popular imagination, cannabis has a much closer link to creativity than it does to focus, but there is also a long tradition of cannabis being used to enhance focus, especially during prolonged physical activities.

For example, wrestlers in Northern India traditionally took bhang, a cannabis-infused drink, “to ensure long term concentration during exhausting all day practice.”

Many recent artists and thinkers also tout marijuana’s creativity-sparking benefits. Steve Jobs once said, “The best way I could describe the effect of the marijuana and hashish is that it would make me relaxed and creative.”

Cannabis and Creativity

According to Dr. Alice Flaherty, cannabis may boost creative output: “Marijuana is a stimulant. And most stimulants, in the short term anyway, boost output of all kinds.”

Dr. Flaherty explains that cannabis may affect creativity by boosting cerebral blood flow to the frontal lobes, which serves as the control center for “divergent creative thinking.”

While creativity is hard to measure, scientists have teased out two processes that are thought to play a role in creativity: divergent thinking and convergent thinking.

Brainstorming is divergent thinking or “being able to explore options through loose associations to generate novel ideas.” Convergent thinking is the opposite: you take various different ideas and find a common thread between them.

Dopamine, Creativity, and Cannabis

Dopamine is a neurotransmitter that is associated with learning and motor control, but it also plays an important role in divergent and convergent thinking.

A 2010 study looked at the relationship between dopamine and creativity and found that too much or too little dopamine harms divergent thinking, but a middle amount is just right.

THC is known to stimulate dopamine release in the striatum, which is a part of the brain involved in creative activities. However, chronic marijuana use may lead to decreased dopamine activity in the brain.

This data suggests that in long-term cannabis users with depressed dopamine activity, inhaling THC could temporarily improve their divergent thinking.

But convergent thinking is “negatively correlated with dopamine activity, so inhaling marijuana should hamper this aspect of creative thinking in anyone.”

Does Cannabis Enhance Creativity?

A 2003 survey revealed that 50% of cannabis users believe cannabis heightens their creativity. Of course, self-reported surveys are not exactly objective.

An early clinical trial from 1975 looked at the effect of marijuana on convergent and divergent thinking and found that a 3mg joint of THC improved divergent thinking, but a 6mg joint worsened it. If your goal is to focus or create, it is probably best to start with a small dose.

In 2011, Dr. Gráinne Schafer and colleagues at the University College London reviewed literature “suggesting that the effects of cannabis on creativity have not been extensively studied nor are the mechanisms by which it stimulates creativity well understood.”

In 2012, Schafer et al. published a study demonstrating that people with low creativity demonstrate improved verbal fluency after consuming cannabis. However, people with high creativity were unaffected by consuming cannabis.

So there is some evidence that cannabis can enhance creativity, but how it affects you seems to vary based on your specific neurochemistry, genetics or personality.

Why Might Cannabis Enhance Creativity?

One of the reasons cannabis might enhance creativity is simply because it is psychoactive. Many people have found that “the exaggerated emotions and altered perspectives they’ve gained from drugs stimulate their creativity.”

Dr. Grainne Schafer suggested that cannabis produces psychotomimetic symptoms, which might lead to connecting seemingly unrelated concepts. Of course, while this state may be beneficial for generating new ideas and connections, these ideas should be reviewed and edited the next day.

As Gina Beavers, a painter who makes surreal, abstract pieces emphasizes, “A few times, I’ve been mulling over how to solve some issue and weed will give me ideas, but not always the ones I go with. I have to wait and look at the solutions in the light of day.”

Why Might Cannabis Enhance Focus?

Scientists have given much less attention to how cannabis impacts focus. However, many people note that a purposeful dose of cannabis or CBD helps them focus.

Perhaps one of the ways that cannabis or CBD helps people focus is by muting distractions like mild anxiety, stress or chronic pain.

Additionally, there is evidence that cannabis affects aging brains differently than young brains, so the focus-enhancing effects of cannabis or CBD may vary based on age.

People who are chronically stressed may find more focus-enhancing benefits from cannabis than people with less stress. Chronic stress often results in chronic inflammation.

Research published in November 2019 by Dr. Ali Mazaheri and colleagues at the University of Birmingham showed that “inflammation specifically affected brain activity related to staying alert.”

“These results show quite clearly that there’s a very specific part of the brain network that’s affected by inflammation,” says Dr. Mazaheri. “This could explain ‘brain fog’.”

People who find that CBD helps them focus may have CBD’s anti-inflammatory effects to thank for that.

Research into how CBD affects Alzheimer’s disease (AD) has revealed that CBD can “reduce the neuroinflammatory response as well as promote neurogenesis…” and that CBD reverses and prevents the development of cognitive deficits in AD rodent models.

The available data suggests that CBD and THC-CBD combinations may exert a stronger anti-inflammatory effect than THC alone and, as a result, might be better for enhancing focus.

Use Jointly to Focus and Create Better with Cannabis

With Jointly, you measure how well a cannabis product helps you achieve your goals.

As you work to improve your focus or creativity with cannabis, Jointly helps you track the 15 factors that can impact your results so that you can enjoy your ideal experience every time.

Jointly users who have optimized their cannabis consumption by reporting at least 10 cannabis sessions are getting results that are 38% better than before.

Download the Jointly app today and start achieving your wellness goals with cannabis and CBD!

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Washington Social Equity Task Force Votes to Center Anti-Black Racism

12/30/2020

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In 2019, Washington state established the Washington Social Equity In Cannabis Task Force via HB2870. The task force marks the beginning of an eight-year evaluation of the Washington cannabis industry to ensure the industry serves the communities most heavily targeted by the war on drugs.

The main purpose of the task force is to develop a social equity program. They will help to accomplish this through reporting to the governor and legislature on factors that the state’s Liquor Control Board (LCB) should consider when distributing licenses and whether there should be additional licenses issued.

With the first meeting held on October 26, 2020, there is still much work left but their mission is beginning to take direction. In a December 14 meeting, the task force voted to center on anti-Black racism as they formulate their recommendations.

When Commissioner Paula Sardinas of the Washington State Commission on African American Affairs accepted the Co-Chair position, she was prepared to dismantle an industry that repeatedly ignored Black Americans who have paid the price of the war on drugs. The task force’s vote to center anti-Black racism in their recommendations acknowledges 400 years of oppression and takes a step towards dismantling the structural racism built into the framework of Washington cannabis.

Sardinas has a unique role as both a Commissioner and a lobbyist. She works hard to delineate the roles. As a Black woman who has been personally impacted by the war on drugs, she does not represent any labor party or other entities. When she began lobbying pro-bono for the Black community in cannabis, she was the first Black lobbyist to enter the space. Her experience in that work has called her to demand transparency and accountability from the Washington LCB and policymakers. The first step to accomplishing this would be requiring policymakers to expose who is paying for their campaigns, which Sardinas says is a crucial step to dismantling the racist structures that permeate the space.

Another facet of the social equity process in Washington will include data-driven policy based on ACLU reports about how the war on drugs caused direct and generational harm to the Black community. These findings coupled with census data showing where BIPOC people reside and looking at crime statistics from drug use, arrests, and convictions in those communities alongside systemic poverty factors will provide clarity as to where the work needs to be done. This investigation of the past must be met with a forward-looking policy much in the same way that we approach the tech and pharmaceutical industries.

“The Task Force should be recommending 2021 legislation that is both urgent and important. HB2870 has some serious inadequacies that cannot wait. The Black and #BIPOC community has been waiting for years for equity. A 2021 clean-up bill can address those inequities. Any politician not willing to draft legislation—is not advocating for the people, they are working for their own interest.” — Commissioner Paula Sardinas, in a statement to Ganjapreneur

Taking a look at the industry now and then forecasting where it will be in five years will help policymakers identify future opportunities, and these opportunities must be given to Black and brown licensees to honor the promises of social equity. Because right now, the 35 of 600 total licenses that are going to social equity applicants simply isn’t enough.

Commissioner Sardinas is also focused on holding space for the queer community and other marginalized groups alongside the Black community as they establish social equity in Washington. Generally, the people who implement social equity policies simply aren’t dealing with the experiences that affect BIPOC and queer people daily. For example, showing up to an open commercial rental space only to be turned down if the realtor identifies you as Black or queer is an experience that some have the privilege of never understanding. The commissioner is asking people who have gone through bad licensing incidents or who simply want to share an experience working with the LCB to virtually attend the next Washington Social Equity Task Force meeting.

“If you are a black, trans, straight, or any with an interest in cannabis please show up to the next meeting and let us know what you’re thinking,” Commissioner Sardinas told Ganjapreneur. “We have no business making policy for this community without hearing from our community.”

Editor’s note (1/21/2021): The next Social Equity Task Force meeting has been scheduled for January 25, 2021. The meeting did not yet have a set date when this article was published.

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Montana Orders Legalization Group to Reveal Funding Sources

12/30/2020

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Montana’s commissioner of political practices is ordering the North Fund, a group that donated millions to the pro-legalization campaign in the state, to pull the veil back on where their funding came from, KTVH reports. The decision requires the group to present officials with its donor’s list and how much they contributed, along with other financial disclosure information within 10 days.

Commissioner Jeff Mangan’s decision comes in response to a complaint from Steve Zabawa, treasurer of the anti-legalization group Wrong for Montana. The organization is suing the state over the measure – which was approved by 57% of Montana voters – arguing that the financial allocation provisions in the measure violate the state constitution.

The North Fund, based in Washington, D.C., contributed about $5 million to New Approach Montana, the group behind the legalization campaign. The committee raised a total of around $7 million, the report says.

North Fund registered with the state as an “incidental committee,” which is defined by state law as a group that may contribute to a campaign but is “not specifically organized or operating for the primary purpose of supporting or opposing candidates or ballot issues,” according to KTVH.

Under state law, incidental committees are not required to disclose their donors unless their contributions were specifically for a certain candidate or ballot issue. Mangan had tried to reclassify the North Fund as an independent committee – which would have required it to disclose its donors and other financial information, but the group asked the commissioner to reconsider that decision and Mangan was still in the process of reconsidering that request when Zabawa filed the complaint in October.

The North Fund argued that because its election spending in the state was estimated at less than 10% of its overall expenditures for 2020 and wasn’t operating for the purpose of a single political issue, it should be able to keep its status as an incidental committee. Mangan said state law on campaign funding doesn’t exclude out-of-state operations and the group’s out-of-state spending should be taken into account when considering the group’s “primary purpose.”

“North Fund cannot reasonably argue both that its Montana expenditure activities represent such a small portion of the overall totals that it could never be justifiably defined as the group’s ‘primary purpose’ while at the same time arguing that non-Montana expenditure activity should not be applied towards committee classification.” – Mangan in a statement via KTVH

Mangan said the group contributed more than $12 million to support and oppose a variety of ballot initiatives in four other states during the election cycle. The group argued that 70% of those expenditures were not election-related.

New Approach Montana also received about $1.9 million from the New Approach PAC, a national pro-legalization committee which is also registered in the state as an incidental committee; however, New Approach PAC does list its donors with the Internal Revenue Service.

Some provisions of the voter-approved law – such as personal possession and cultivation of up to four plants – take effect January 1.

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Mississippi AG Defends Medical Cannabis initiative

12/30/2020

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On behalf of the Mississippi Secretary of State, the Mississippi Attorney General’s office presented arguments in court on Monday slamming a lawsuit that seeks to overturn I-65, Mississippi’s historic medical cannabis initiative that voters overwhelmingly approved on November 3, the Associated Press reports. 

Madison, Missouri Mayor Mary Hawkins Butler first filed the lawsuit to stop I-65 in late October on the grounds that, if passed, it would limit a mayor’s ability to choose the locations of medical cannabis dispensaries.

After the initiative passed, the mayor’s lawsuit was updated. Now, the lawsuit seeks to overturn I-65 on the grounds that Mississippi’s Constitution is “outdated.” At the core of the case is the fact that Mississippi dropped from five Congressional Districts to four after the 2000 census. Due to divisive politics, however, the Mississippi legislature has been unable to officially make the change in the state Constitution. In their argument, state attorneys wrote,

“As a result, four congressional districts exist in Mississippi under a federal injunction for congressional elections, but five congressional districts exist under state law and may be used for anything but congressional elections.” — Statement by state attorneys, via the AP

In 2009, the AG’s office said initiatives should still use the five districts to collect signatures for initiatives, and in 2019 Secretary of State Delbert Hosemann approved I-65 for the 2020 ballot because signature gatherers had met the threshold in each of those five districts, the AP reports. 

Mayor Butler’s attorney says the legislature has been aware of the issue for years and has turned down multiple proposals to fix the problem. Joining the effort to overturn I-65, the Mississippi Health Department and the Mississippi Municipal League have filed briefs supporting Butler’s lawsuit. 

“Rather than allowing the agency to focus its resources entirely on public health, it requires MSDH to get in the business of appropriations, agriculture, packaging and transport, advertising, marketing and penalty schemes — just to name a few,” MS Health Department wrote in their arguments.

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Rhode Island to Select Six Medical Cannabis Providers in 2021

12/30/2020

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Rhode Island is relying on a lottery system to choose providers for its fledgling medical cannabis system and is expected to announce the winners sometime in 2021, the Boston Globe reports.

Although Rhode Island is limiting the number of “care facilities” to only six across the entire state — the state is divided into six zones with one care facility in each zone — the state had received 45 applications from 28 different non-profits by the December 15 deadline.

The names divulged on the applications contain a “who’s who” of lobbyists, current and ex-politicians, and business owners, the Globe reports. Many of them betting on eventually being the first in line for adult-use licenses, applicants paid a non-refundable $10,000 application fee and are expected to pay a $500,000 annual licensing fee to the state if they are selected.

“People are assuming that the compassion centers will be the exclusive sellers of recreational marijuana. It’s literally a roll of the dice, financially.” — Jeff Padwa, cannabis attorney, via the Boston Globe

Despite New Jersey, Massachusetts, and other East Coast states having legalized adult-use cannabis, the issue is not a slam dunk in Rhode Island. COVID-19 put a damper on Gov. Gina Raimondo’s (D) plans to propose a regulated market in 2020. Now, the incoming Speaker of the House Joseph Shekarchi says he is not ready to “endorse a plan,” nor would he “bet the farm” on adult-use cannabis coming to Rhode Island in 2021.

A 2017 poll revealed 59% of Rhode Islanders supported legalizing adult-use cannabis. 36 percent said they were opposed to the move.

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Cindy De La Vega: Operating a Community-Focused Social Equity Retailer

12/29/2020

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Cindy De La Vega grew up in the Sunnydale housing projects, a community frequently targeted by the War on Drugs. Throughout her life, Cindy pushed through struggles to support her children. It was through community support and her own hard work that Cindy now serves as CEO of STIIIZY Union Square, a prominent store in a heavily trafficked San Francisco retail center. Now, she uses her position overseeing the day-to-day operations at STIIIZY to give back to that same community.

In this interview, Cindy explains how she uses her executive position to give back to her community — including her work with the youth development organization United Playaz — and offers advice to other social equity applicants interested in operating a cannabis dispensary.

Ganjapreneur: Did growing up in the Bay Area and watching the legal markets bloom alongside a robust legacy market influence how you choose to run STIIIZY Union Square?

Cindy De La Vega: Growing up in, and still living in the Sunnydale housing projects, I saw the War on Drugs have extreme effects on the community. I was actually not a cannabis consumer until later in life, and up until then had been cautious of its effects and uses.

My choice to run STIIIZY Union Square is not only about creating a better future for myself and my family, knowing there is a big market for our products, but also stems from my deep involvement in community work. I have worked with, and sent my kids to programs at United Playaz for years, so to be able to own a business, create revenue and pour it back into the community is my ultimate dream.

How did you choose the Shryne Group as your partner for this retail venture? What is the mutual agreement of ownership with your partners?

I was first introduced to Shryne Group because they were sponsoring United Playaz, and as I got to know them better I could see it was the right fit. After not being able to work at the hospital due to a back injury in mid-2018, I shadowed under employees at one of Shryne’s retail locations at 3326 Mission St, gaining hands-on experience.

After becoming a verified applicant and doing a bit of my own research, I found Shryne Group to be the best match. One of the reasons Shryne Group is that right partner is because I see myself reflected in their employees and leadership, 51% of employees are Latinx, women in leadership positions. I have 40% ownership, and I am Chief Executive Officer of the store.

Does the Shryne Group play a role in choosing which cannabis brands go on shelves, hiring practices, or any other day-to-day operations?

Shryne Group owns several retail brands, including STIIIZY, so yes we get inventory from Shryne. However hiring and other day-to-day operations are led by me. I am proud to say that I was able to hire several people from my community ahead of our opening.

Is there a benefit to working with a larger company like Shryne Group as opposed to bootstrapping a dispensary? How has Shryne assisted in a meaningful way?

Beyond feeling like Shryne Group is an actual business partner, the biggest assistance came from initial capital and the ability to hold down the retail space from the point that I received my Equity applicant status, to opening, which is no small feat, especially at a prime location like Union Square.

The obvious truth is that Equity Applicants like me just don’t have the money to start a cannabis business — we need a partner. But what a lot of people don’t realize is that, with the retail license, you have to start paying rent once you’ve found a location long before the store can open, and we’re not able to benefit from the federal loans or stimulus programs that nearly every other industry can.

After your experience as an equity business owner, do you have insight into how the city and state could make the industry more accessible to promote a larger and more diverse industry of equity applicants and business owners?

It may be easy for some to criticize the Office of Cannabis, but I’ve seen how hard they’re working, and they’re so understaffed. If San Francisco and California really want to support people like me, they need to fully fund programs to help get Equity folks all the way from being verified to actually opening a business.

As a longtime activist with the violence prevention and youth development organization United Playaz, how do you plan to use your position as CEO to continue to uplift your community?

I have goals to one day be able to work on various cannabis social justice causes, including releasing incarcerated people that have been penalized for cannabis. As a survivor of domestic violence and mother of two, I also have a focus on uplifting women, which is why I feel it is so important for me to be in this leadership position now.

What have been your biggest challenges starting this business in San Francisco city? Do you have advice for entrepreneurs who might be met by these same challenges?

Two months after opening, we are facing the same challenges many other retail businesses are, but with the added obstacles that come with cannabis. On top of that, there is no access to small business loans or many banking services. We pay taxes at a very high rate, yet we are not allowed the standard business write offs other businesses are allowed.

I remain hopeful about the future of the store because we offer great products at affordable prices, but we need continued support from the community in order to progress. My advice to other entrepreneurs would be to keep fighting to accomplish your goals for yourself and your community, but also know you’re not alone. It’s important to lean on the support of your community and partners, and know when to ask for help.

Thank you, Cindy, for answering our questions! To learn more about STIIZY’s products and multiple retail locations, visit STIIZY.com.

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New Jersey Gov. Delays Signing of Legalization Bill

12/29/2020

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The New Jersey legalization bill has hit a snag as Democratic Gov. Phil Murphy wants changes to a decriminalization bill over a technical issue that shields minors from cannabis-related penalties, according to a Patch report. Murphy, a proponent of the reforms, wants to sign both the decriminalization and legalization bills simultaneously but wants cannabis possession penalties for minors to be like those of alcohol: legal for adults 21-and-older to possess and consume but illegal for those who are underage.

In a series of tweets, Matt Friedman, a reporter for Politico who first reported the potential delay, said that Murphy could just sign the bill “with an agreement for a legislative fix” but “doesn’t want to do that.” According to Friedman, the governor could also “schedule a session this week and pass the clean-up legislation with an emergency, if they can get the votes.” However, he said that option “Doesn’t sound likely, even if with remote sessions it’s easier than getting everyone physically together during the holidays.”

The measure was passed by lawmakers earlier this month as required by an Election Day ballot initiative approved by 67% of New Jersey voters.

While some aspects of the law take effect Jan. 1, 2021, officials estimate legal sales will not commence in the state for six to 12 months from the time the bill is signed into law. Any delay in getting the governor’s signature pushes back the timeline.

Some lawmakers and advocates have criticized the measure over its lean social justice provisions, which Sen. Nia Gill referred to as its “weakest part.”

As passed, the legislation directs 70% of the cannabis-derived state sales taxes and an excise tax on cultivation to certain minority communities disproportionately impacted by the drug war. But some argue the language is not strong enough to guarantee the funds go to such community programs. Advocates also wanted the bill to outline a path for those with previous cannabis convictions to enter the legal industry.

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High Prices Plague Pennsylvania’s Medical Cannabis Industry

12/29/2020

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While medical cannabis prices in Colorado and Maine range from $35 to $40 per eighth, that same eighth would cost $58 in Pennsylvania where patients face some of the highest medical cannabis costs in the country, according to the Pittsburgh Post-Gazette. Ounces in the state can cost as much as $600 in some cases.

The exorbitant prices have multiple causes, including state regulations that limit supply — cannabis in Pennsylvania can only be grown indoors and the state requires two impurity tests for cannabis destined for market, and batches that fail the second test must be completely destroyed — and “timid” government agencies who are unwilling to regulate prices and prevent outright “profiteering,” the report says.

“The patient community is always outraged about the prices,” said Luke Shultz, a member of the state’s Medical Marijuana Advisory Board. “I’m not sure where the price should be. But we’d sure like to see it lower.”

The newly-formed Office of Medical Marijuana (OMM) has kept mostly tight-lipped about the situation.

“We continue to work to assist patients to ensure we have access to medical marijuana.” — OMM statement, via the Pittsburgh Post-Gazette

Meanwhile, increased demand from the addition of “pain” and “anxiety” as qualifying conditions for Pennsylvania’s medical cannabis program has compounded the supply shortages.

The OMM has the authority to adjust prices to help “low-income” cannabis patients access their medicine in Pennsylvania but the agency says its hands are tied until final regulations are adopted and the OMM pays the state back $3 million in start-up money, according to the report.

 

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Cannabis-Focused REIT Files with SEC to Go Public

12/29/2020

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AFC Gamma, a real estate investment trust (REIT) based in West Palm Beach, Florida, on Monday filed an S-11 to go public on the Nasdaq, according to a Renaissance Capital report. In a Securities and Exchange Commission filing, the firm indicated plans to raise up to $115 million in an initial public offering.

Since its founding in July to September 30, the company has booked $2 million in revenue, the report says. Formed by Advanced Flower Capital, AFC Gamma originates, structures, underwrites, and manages loans for established companies operating in the cannabis industry in states where cannabis is legal for either medical or recreational purposes. As of December 26, the company had originated and funded $135 million in loans.

According to a New Cannabis Ventures report, the company has a $40 million line of credit.

AFC Gamma has disclosed transactions with privately-held Nature’s Medicines, and publicly-traded firms Curaleaf, and Bluma Wellness. According to the SEC filing, AFC currently has loans and pending loans to four private and three public companies, which are unnamed in the prospectus.

A cannabis-focused REIT, Innovative Industrial Properties, already trades on the New York Stock Exchange under the IIPR symbol. Another NYSE-traded firm, Power REIT (REIT), just recently began funding cannabis operators with sale-leaseback transactions, according to New Cannabis Ventures.

AFC Gamma, which filed to trade under the symbol “AFCG,” has named JMP Securities, Ladenburg Thalmann, and Seaport Global Securities as its underwriters.

In the prospectus, the firm said that as of December 26, its “loan origination pipeline consisted of 34 potential new loans representing anticipated total loan commitments of approximately $485.2 million.”

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Iowa County Starts Program to Prevent Criminal Records for Cannabis Users

12/29/2020

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The Linn County, Iowa Attorney’s Office last week announced a Marijuana Diversion Program aimed to keep clean the criminal records of first-time offenders caught with “a user quantity amount” of cannabis. The program requires county prosecutors to “weigh multiple factors when considering whether to recommend a defendant to participate in the program.”

According to a press release, the goal of the program is to mitigate the negative consequences of a minor cannabis charge, including the ability of offenders to obtain housing and employment, access higher education, and on the short and long-term financial security of defendants charged with cannabis possession. The program aims to reduce recidivism of first-time offenders and rehabilitate defendants “by treating and addressing underlying issues surrounding substance abuse.”

A December 28 legal memo outlining the program explains that the program will only be available for pending charges or arrests prior to January 1, 2021, and only for defendants who were not already convicted or granted deferred judgment on the charge. Additionally, applicants must not have been “charged with either another indictable offense in the same or in a separate prosecution or currently charged with any crime of violence.”

Program enrollees would be required to be evaluated for substance abuse from a “credible substance abuse treatment provider,” complete 10 hours of community service, appear at all court dates, not be arrested or convicted for any other charges while in the program (save for traffic citations), and waive “the right to file a pretrial Motion to Suppress Evidence to challenge the constitutionality of the admissibility of evidence in the case.”

The effectiveness of the program will be reviewed at the end of 2021 and the Attorney’s Office could modify and/or expand the program based on that review.

Linn County includes Cedar Rapids, the state’s second-largest city behind Des Moines.

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