Kentucky is partnering with cannabis compliance and tracking company Metrc for the state’s upcoming medical cannabis program’s first track-and-trace contract. The program, like other medical cannabis programs in the U.S., requires operators to closely track each plant and the resulting products from seed to sale.
Metrc said in a press release that the company’s track-and-trace platform “will bring transparency to ensure regulatory compliance, help combat the illicit market, and safeguard the health and well-being of Kentucky’s patients.”
“As Kentucky works to establish its medical cannabis market, we are thrilled to have the opportunity to launch the state’s first-ever track-and-trace program. Our team at Metrc looks forward to working alongside the Cabinet for Health and Family Services to build a regulatory framework that will create a marketplace with the strongest foundation, where patients are guaranteed safe consumption and licensees are provided an environment to thrive.” — Metrc CEO Michael Johnson, in a statement
The contract between Kentucky and Metrc will be the cannabis compliance company’s 25th government contract, the company said.
While government contracts are Metrc’s primary focus, the business also recently began servicing operators in the cannabis industry directly, MJBizDaily reported.
Kentucky Gov. Andy Beshear (D) signed the state’s medical cannabis legalization bill into law last April; under the law, registered cannabis patients will be able to access cannabis edibles and concentrates — but not smokable products — starting in January of next year. Beshear had previously signed an executive order allowing some individuals with severe medical conditions to possess cannabis.
Arkansas Attorney General Tim Griffin (R) on Tuesday approved a ballot initiative seeking to improve medical cannabis access in the state, the Arkansas Advocate reports. The initiative would also set up a trigger law that would legalize adult-use cannabis if cannabis possession were to be decriminalized at the federal level.
The attorney general had previously rejected the ballot initiative proposal after noting issues with its formatting and ambiguity, but advocates were given time to rework the initiative and resubmit it for consideration for the 2024 ballot. Ultimately, only minor changes in wording were made, the report said.
with attorney general’s approval, advocates must submit 90,704 valid voter signatures supporting the measure by July 5 to qualify for November’s ballot.
“We are confident that Arkansans will respond positively and ultimately vote for the proposed amendment because it will reduce barriers to obtaining a medical marijuana card, eliminate the annual renewal hassle and give patients more product choices.” — Bill Paschall, Executive Director of the Arkansas Cannabis Industry Association, via the Arkansas Advocate
In addition to the changes described above, the proposal would also let registered patients grow cannabis at home, let health providers other than doctors recommend patients for the program, and allow such providers to certify anyone they see fit for the state’s medical cannabis program. The program would also be expanded to allow telemedicine referrals, recognize out-of-state medical cannabis patient IDs, increase the registration period from one to three years, and remove program application fees for patients.
The proposal, which is now called the Arkansas Medical Marijuana Amendment of 2024, is supported by the state’s medical cannabis industry.
Rhode Island Gov. Dan McKee (D) has proposed decoupling state and federal taxes for cannabis industry operators as a partial workaround for IRS code 280E, Marijuana Moment reports.
The cannabis industry pays an exorbitant amount of taxes as a result of 280E, which prohibits companies from taking normal business tax deductions if their work is tied to a federally prohibited substance (cannabis is still declared Schedule I under the federal Controlled Substances Act).
The governor included the tax relief language as part of his budget proposal for the fiscal year 2025, stating that “Rhode Island would join Massachusetts and Connecticut, and at least 10 other states, in decoupling from this federal policy,” and estimating that the move would save cannabis operators $824,642 in the fiscal year 2025 and $1.7 million in the fiscal year 2026.
The tax relief language is supported by Cannabis Control Commission (CCC) Chair Kim Ahern, who attended the House Finance Committee meeting last week addressing the governor’s budget proposal, the report said. Lawmakers have not yet voted on the budget proposal.
It’s possible the cannabis industry could soon find tax relief at the federal level if the Biden Administration were to either reschedule cannabis from Schedule I to Schedule III — as was recommended last year by the U.S. Department of Health and Human Services — or remove cannabis from the federal drug schedule entirely, a move that was recently suggested by a group of Senate Democrats.
Rhode Island passed its cannabis legalization law in 2022 and the state’s licensed cannabis dispensaries earned more than $100 million in combined medical and adult-use sales during their first full year of adult-use operations.
Maryland-based cannabis grower Joseph Ricci says in a new lawsuit that Smithfield police lied about being told by a confidential source that his cannabis grow exceeded the legal limits and then destroyed cannabis products seized from his grow that could have proved his operation was lawful, the Providence Journal reports.
The dispute stems from a 2017 incident where police searched a warehouse owned by Ricci and, according to police reports, ultimately seized 42 cannabis plants and a little more than a kilogram of bagged cannabis flower. At the time, Ricci was a registered medical cannabis patient and caregiver providing cannabis for two other patients, the report said.
Police initially filed drug charges against Ricci but those were dropped; however, officials have continued to pursue a civil forfeiture case that seeks to claim Ricci’s Smithfield warehouse.
However, it was recently revealed that police last year destroyed at least some of the cannabis seized from Ricci’s grow. In court papers filed on Friday, Ricci’s attorney, Megan Sheehan, called the case “a travesty of justice.”
Additionally, a federal judge noted during a pre-trial motion ruling last year that there was “strong” speculation that police had lied about hearing about the grow site from a confidential informant.
“Indeed, it is patently clear here that the destruction of this evidence was intentional or intended to suppress the truth. Between the intentional destruction of contested vital evidence and impermissible police fabrications, it certainly appears that the conduct in this case was done in bad faith.” — Sheehan, via the Providence Journal
“There is no reason the evidence should have been destroyed six years into a pending civil forfeiture case, and three years into this pending case, when at the heart of both the town and state’s arguments are that the destroyed evidence proved that Mr. Ricci was over the possession limits,” Sheehan said in the report.
Cannabis is legal for adult use in Maryland and, while the state’s legal market only launched midway through last year, licensed retailers sold over $700 million worth of cannabis products in 2023.
The International Cannabis Business Conference is a leading international cannabis business to business (B2B) event series, with previous conferences taking place in several countries on multiple continents. The event series is owned and operated by passionate cannabis advocates who believe in celebrating cannabis culture, in addition to providing world-class cannabis industry education and networking opportunities.
Barcelona’s rich cannabis history and culture makes it the perfect backdrop for the next International Cannabis Business Conference (ICBC) being held on March 14, 2024. ICBC has once again partnered with Spannabis, Europe’s top cannabis expo, to form the world’s largest super-conference that is a must-attend for anyone who is serious about succeeding in the emerging cannabis industry. Spannabis has previously teamed up with the International Cannabis Business Conference to host past super-conferences, and the collaborations were a tremendous success. The 2024 super-conference will be larger and more exciting than ever, with the collaboration event being the largest of its type on the planet. A complete list of speakers can be found at this link here, as well as the full schedule at this link here.
“The Spannabis brand is iconic and one of the most recognized names to cannabis fans all over the world, and we are honored to be partnering with such a long-time and important institution,” states Alex Rogers, Executive Producer of the International Cannabis Business Conference.
“Spannabis has served as the meeting point for the entire European cannabis scene for many years. It is first and foremost a consumer event, however, many folks who attend are also looking for a B2B element. The ICBC’s partnership with Spannabis fills this gap and satisfies a clear need for major cannabis industry players to meet, network, and to progress and advance the industry as cannabis laws are liberalized in Spain and across the continent.” Rogers said.
Dozens of countries will be represented at the super-conference this March in Barcelona and will include representatives from every sector of the industry as well as leading international cannabis policymakers and industry service providers. Attend the super-conference in Barcelona to network with investors and entrepreneurs to take your industry pursuits to the next level. Spain’s cannabis industry is estimated to be worth 238.5 million euros in 2024 according to an analysis by Euromonitor International. Euromonitor estimates that Spain’s medical cannabis market alone is worth an estimated 27.3 million euros as of this year. Those figures are estimated to rise in 2025 to 358.4 million euros and 107.6 million euros, respectively.
Upling is a Black-owned cannabis delivery app currently serving dispensaries and medical cannabis patients in Maryland, Washington DC, and Jamaica, and is in the process of expanding into other markets. Increasing accessibility to much-needed medicine for cannabis patients by allowing them to easily place delivery orders from dispensaries in their area, the company also aims to provide a level of service and customization to their dispensary partners that larger SaaS (software-as-a-service) companies tend to stop short of.
A key part of Upling’s mission is to support the formerly incarcerated by providing employment opportunities within the legal cannabis industry for returning citizens. Upling’s founder, Colin Fraser, who himself was incarcerated due to cannabis-related convictions, aims to use Upling to address the repercussions of the war on drugs and systemic injustice and racism in the US carceral system. Fraser recently joined Ganjapreneur for a conversation about Upling’s trajectory from its launch to where it’s headed in the future, as well as his ongoing work supporting returning citizens, and why the cannabis industry should specifically create opportunities for those who were punished unjustly over the plant.
Early experiences with cannabis
Raised in a Christian household, Fraser says he was always warned about “The Devil’s Lettuce” – that’s how people in his church referred to cannabis when he was a kid. Growing up in the D.A.R.E. era, police officers would come to school and tell the students that they would never amount to anything or have any opportunities in life if they smoked marijuana.
As he got older, Fraser was introduced to the fun and euphoria of cannabis consumption by his peers, but ultimately what captured his attention was the recognition of the plant as a potentially lucrative economic opportunity. It was a commodity that everyone wanted, so it had the power to generate wealth, and this revelation propelled him into the legacy market. Eventually, though, Fraser’s career took a dramatic turn when a deal escalated into violence, and he wound up being shot eight times. The aftermath was harrowing: he was taken to a hospital and wound up in a coma, and when he woke up three days later, he found himself in handcuffs.
Despite his critical condition, with his jaw wired shut from his injuries, he was forced to give a statement to the police as soon as they saw that he was conscious. Even though Fraser’s attackers were long gone, since there was cannabis involved, he was arrested and taken straight to jail where he wound up serving a two-year sentence.
When he got out of prison, Fraser found himself in a world where the laws that put him behind bars were being challenged by new state-level legalization initiatives – and he began to contemplate how to pursue the opportunities in the legalized cannabis industry that were becoming available.
From business concept to the app store
During the early stages of the COVID-19 pandemic, Fraser noticed the prevalence of delivery app services in his neighborhood, which sparked the question, “You can get your groceries delivered: I wonder if you can get your weed delivered?” This led him to discover that Maryland was offering a license for cannabis delivery services. After much research and preparation, he applied for it and was successful in obtaining the license. Around the same time, Fraser’s mother was diagnosed with stage four cancer, which highlighted the need for this type of service on a personal level – spurring him to move quickly in bringing his idea to reality.
Having grown up tinkering with computers, Fraser had the necessary knowledge of programming to put together a statement of work for a development project, and he sketched out the essential functions for the delivery app. He then collaborated with an agency to refine and build the platform, dedicating long hours to supervise the dev team to ensure the app met his standards and would exceed user expectations.
The next challenge was launching the app on the Google and Apple app stores, a process that required navigating their stringent policy guidelines. “That process involved a lot of education,” he says. Despite Apple rejecting his application eight times and threatening a permanent ban on resubmission, Fraser persisted. He researched strategies used by other developers to overcome similar hurdles and submitted detailed documentation, including standard operating procedures and a comprehensive analysis of the app’s code structure, to demonstrate compliance with app store policies. His perseverance paid off when the app was finally approved, marking a significant milestone in bringing his vision of a cannabis delivery service to fruition.
From prototype to clientele
In the initial phase of introducing Upling to potential clients, Fraser says he encountered tepid responses. Presentations of the app often resulted in a noncommittal “we’ll get back to you” rather than outright rejection, leading him to realize that a more deliberate strategy to generate interest was needed.
He shifted focus towards networking within the industry, leveraging trade shows, conferences, speaking engagements, and pitch competitions as platforms to engage directly with key stakeholders. This approach gradually changed perceptions as he was able to connect in-person with decision makers, culminating in his first few clients, and eventually to dispensaries proactively reaching out to Upling to sign up.
Getting the dispensaries onboard was only the first half of the battle, however: patients still needed to use the app in order for it to generate value for his partners. At one point, Fraser says Upling saw several hundred new app downloads in a single day when METRC, the regulatory compliance system, experienced downtime. This disruption prevented in-store point-of-sale systems from processing transactions, whereas Upling remained operational, resulting in a surge of downloads from users seeking an alternative.
As Upling’s user base expanded, Fraser prioritized customer feedback in the development process, focusing on integrating features specifically requested by dispensary partners. This customer-driven approach was complemented by his proactive research into competitors’ weaknesses. By analyzing their negative reviews, Fraser aimed to learn from the shortcomings of other delivery platforms, ensuring that Upling offered a superior alternative.
Outperforming the competition
Fraser’s vision for the Upling platform is centered on autonomy and customization for dispensary partners, aiming to provide them with a solution that isn’t dependent on third-party platforms or API integrations for new features. Building for flexibility is more time-consuming and complicated, but he notes that not all dispensaries want to showcase their products in the same way, and that they should be able to control the shopping experience for their customers to build a more personalized relationship with them. Additionally, marketing tools within the app enable the promotion of deals and loyalty programs that can be customized to the dispensary’s preferences.
With the development of Upling 2.0, the app is set to introduce enhanced functionality, including more payment options and an integrated POS system that supports inventory management. For patients, the new version of Upling will improve the interaction with their delivery drivers, including in-app communication and tipping. Another new feature will be the ability for patients to obtain their medical certification directly within the app, a feature previously only available via the website.
Colin Fraser had the opportunity to meet with Maryland Gov. Wes Moore to discuss the importance of keeping legal cannabis open to returning citizens.
The importance of purpose
Being purpose-driven is a popular (and some would argue necessary) stance for successful cannabis industry players, and large brands are often featured in the news for contributing hefty donations to organizations that work to free those incarcerated for cannabis. For Fraser, however, it’s more than a stance: it’s a hands-on lifestyle that predates his decision to participate in the legal cannabis industry.
After he got out of prison, Fraser says that he knew that he was kept alive for a specific reason. “I knew plenty of people who got shot once, who got grazed by a bullet once, and perished. For whatever reason, God kept me alive after eight bullets,” he says. Fraser felt that he had been saved to do God’s work, so he went into the prison ministry and worked for several years helping incarcerated people. This work solidified his understanding of the deep-rooted injustices within the criminal justice system, recognizing that the majority of incarcerated people are there because they made a singular mistake – one which they are unlikely to ever repeat, and which certainly doesn’t justify the degree of punishment they received.
In Fraser’s words, “the system is doing what it is supposed to do.” Systemic racism, while ingrained into the fabric of American society as a whole, is perhaps most obvious within the private prison industry–which profits from incarcerated labor as Black and brown people are arrested at disproportionate rates under laws that were established to specifically target their communities.
With his work in the prison ministry, Fraser says he was able to help incarcerated people cope with this reality and find hope within their faith. With Upling, he sees an opportunity to help returning citizens make the transition to gainful employment in an industry that wouldn’t even be possible without their sacrifice. He says that he hopes regulators–and the industry as a whole–will do more to recognize this often “unacknowledged demographic” and create specific opportunities for those who have been convicted under unjust cannabis laws.
Advice for cannabis founders
Fraser credits much of his success navigating the difficulties that come with starting a business in a highly competitive and volatile industry to having a loving and supportive marriage, as well as recognizing that he is ultimately serving a higher purpose. For those who are passionate about building an inclusive industry and working to counteract the longstanding injustices of America’s failed drug policies, Fraser recommends building a strong community with other organizers, activists, and like-minded entrepreneurs. He says it can be difficult to face constant rejection and have people question your value and legitimacy when starting out, but that persistence pays off. “When we first came onto the scene, they wouldn’t let us sit at their table,” he says. “So, we built our own.”
California police and tax collection officials recently sold at auction personal property seized during law enforcement raids on unlicensed and tax-delinquent cannabis dispensaries. First reported by the LA Times, the auction’s seized included items such as glass bongs and pipes, furniture, and electronics typical to modern dispensaries.
The products were initially seized while executing search warrants against multiple Los Angeles-based cannabis dispensaries. Of the ten retailers raided, only one was actually licensed by the state, and together, the businesses reportedly owed more than $14.4 million in unpaid taxes.
Notably, the auctions last week marked the first time California law enforcement publicly auctioned off personal property that was seized from a cannabis business. Previously, officials had only auctioned off the commercial property recovered from similar seizures in Whittier and Compton, the report said.
“Seizing and auctioning property from cannabis businesses that evade the law is a tool to recover the taxes owed to the state.” — Nick Maduros, Director of the California Department of Tax and Fee Administration, via the LA Times
The items from each location were grouped into lots and if potential purchasers were interested in a specific item, they were required to bid on the entire lot.
The property seizures marked the latest cannabis industry enforcement action for a state that has long sought to curb the unregulated industry. The Unified Cannabis Enforcement Taskforce in California said in January that the taskforce had seized about 190,000 pounds of illicit cannabis — valued at nearly $312 million — during its first calendar year of operation.
Additionally, a Humboldt County cannabis cultivator agreed earlier this month to pay $750,000 to the state over environmental violations, promising to also take restorative measures as part of the court-approved agreement.
Ohio Gov. Mike DeWine (R) is calling on Ohio lawmakers to pass a proposal that would enable the state’s medical cannabis dispensaries to serve adult-use customers, according to a 10 TV report.
The Ohio Division of Cannabis Control Board has already proposed letting current cannabis dispensaries apply for dual-use licenses that could serve both the medical and adult-use retail markets. Nilendu Singh, General Manager at Nar Reserve Dispensary in downtown Columbus, said in the report that he’s eager for the opportunity to serve adult-use customers.
“We are ready to implement it overnight. I think that is where a lot of dispensaries are at too and Nar Reserve is no different. The moment we get that license or we know we are getting it, we will be ready to roll it out that day.” — Singh, via 10 TV
Voters opted to legalize adult-use cannabis during last November’s election but Ohio lawmakers have yet to implement the adult-use market, which continues to confuse some would-be adult-use customers.
“We get phone calls all day long from people asking if we sell recreationally, and people don’t know, and that is the biggest problem,” Singh said in the report.
Shortly after voters passed the legalization initiative, the state’s Republican-led Legislature considered changing the voter-approved measure by removing provisions that prevented municipalities from banning cannabis operations and home cultivation and sought to change how cannabis taxes would be earmarked in the state.
New York cannabis regulators passed new rules on Friday to establish the right for adults to grow cannabis at home, the Times Union reports. The rules are set to undergo a 60-day public comment period before taking effect.
Regulators also approved 109 new cannabis licenses on Friday, including 38 for retailers, according to the Democrat and Chronicle.
Lawmakers included the right to cannabis home grows in the state’s 2021 legalization law but the policy did not take effect immediately — instead, regulators were given 18 months from the first licensed sale to lay out and implement the provisions.
Under the new rules, adults aged 21 or older will be allowed to grow up to six mature and six immature cannabis plants at their home, regardless of the number of people living there. While New York‘s legalization policy already allows adults to possess up to three ounces of cannabis flower, the new rules expand the limit to up to five pounds of “cannabis flower that has been trimmed from plants, which have been cultivated in or on the grounds of said person’s private residence.” Additionally, licensed adult-use cannabis retailers in the state will also be allowed to start selling cannabis plants to customers, the report said.
Officials previously said that delaying access to cannabis home grows would benefit the state’s retail cannabis market but the industry has been far more beleaguered by rampant unlicensed sales. The governor has the state’s cannabis industry roll-out a “disaster” and said the slow launch of licensed sales benefited the illicit market.
Regulators stated they did not expect that allowing cannabis home grows would have a major effect on licensed retailers.
Lawmakers in Virginia’s upper and lower legislative chambers have advanced separate proposals to commercialize cannabis adult-use cannabis sales by next year, Marijuana Moment reports.
Cannabis became legal in Virginia in 2021 but lawmakers stopped short of licensing and regulating the industry, and the issue took a further backseat when Republicans took control of the House of Delegates and Governorship later that year. But Democrats recaptured the House in 2023 and lawmakers in both legislative bodies are now looking to revisit regulating the cannabis industry.
The House Bill
Lawmakers in the Virginia House of Delegates on Monday voted 52-48 — and nearly along party lines — to send a cannabis sales proposal sponsored by Del. Paul Krizek (D) to the Senate for consideration. Del. Chris Obenshain was the sole Republican House lawmaker who crossed the aisle to vote in favor of the cannabis reforms bill, the report said.
If approved, HB 698 would license cannabis cultivators, manufacturers, and retailers, and set a 9% tax rate for the industry. Controversially, the House bill would ban outdoor commercial cannabis grows. Additionally, the proposal would allow the state’s existing medical cannabis operators, several hemp companies, and up to 60 equity-focused microbusinesses to launch adult-use enterprises at the start of next year — although existing medical operators would be charged $400,000 each, which would be used to support microbusinesses through a proposed accelerator program.
The Senate Proposal
The Virginia Senate gave initial approval to a proposal for legal cannabis sales in a voice vote on Monday, setting the bill up for a final vote that is expected on Tuesday. SB 448, sponsored by Sen. Aaron R. Rouse (D), would set the maximum tax rate for cannabis products at 17.5% which includes a 12.5% excise tax, up to a 3.5% local tax, and a 1.125% tax to fund K-12 education, the report said. The Senate proposal would facilitate a general licensing period with retailers expected to open sometime in 2025; there are not any special carve-outs for existing operators or social equity operators.
Advocates say that lawmakers need to reconcile the proposals’ differences and reach a consensus for a final bill to send to Gov. Glenn Youngkin (R). While he has not specifically mentioned vetoing any cannabis sales proposals, the governor recently suggested that he has no appetite for enacting further cannabis reforms.
Cannabis possession is legal in Virginia for adults aged 21+ and adults are allowed to grow up to four cannabis plants for personal use, although there are not currently other legal means of accessing cannabis.
The New Mexico Senate voted last week to approve a non-binding resolution calling for the Department of Health to “study the efficacy of using psilocybin mushrooms for therapeutic treatments and the establishment of a program for psilocybin mushrooms to be used for therapeutic medical treatments,” Marijuana Moment reports.
The bipartisan resolution, co-sponsored by Senate Minority Whip Craig Brandt (R) and Sen. Jeff Steinborn (D), was passed in a unanimous 37-0 vote. In the resolution, lawmakers referenced research showing that psilocybin can treat depression and addiction issues and noted a 2023 FDA guidance covering the research of psychedelic therapies.
The resolution approved last week is more like a formal request and does not require any action.
“It turns out that medical mushrooms, psilocybin, has proven to be medically efficacious for the use of major behavioral health issues. It can help alleviate and be an alternative to major anti-depressant drugs and probably other drugs that have serious side effects and can bring real relief to New Mexicans.” — Steinborn, via Marijuana Moment
The New Mexico House Health and Human Services Committee passed a similar bill last year that called for an investigation into the possibilities of a psilocybin therapy program but that proposal did not advance any further, according to the report.
The Florida Senate unanimously passed a bill on Tuesday that would outlaw products containing delta-8 THC and further restrict the state’s hemp industry, the Florida Phoenix reports.
In addition to banning delta-8 products, the proposal, which is sponsored by state Sen. Colleen Burton (R), would establish THC caps for consumer hemp products at 2 milligrams per serving, and 10 milligrams per package or container. The bill seeks to build upon regulations brought by Burton last year that prohibited the sale of hemp THC products to individuals younger than 21 years old.
The latest proposal also prohibits hemp products that could be perceived as appealing to children, including “products that are manufactured in the shape or packaged in containers displaying humans, cartoons, or animals, toys or other features that specifically target children,” the report said.
“When we passed the hemp program, it was not in anticipation of highly intoxicated, sometimes psychoactive substances being ingested by Floridians. The concerns we have had over the potential misuses of this product I believe has exceeded our expectations. So that’s why we have this bill today to continue the protections that we started last session.” — Burton, on the Senate floor, via the Florida Phoenix
The bill contains other provisions including a one-time $2 million payment from the state for the Department of Law Enforcement to purchase equipment for testing potentially illegal hemp products.
House lawmakers are expected to move forward with the regulations.
Ukrainian President Volodymyr Zelensky signed the country’s medical cannabis legalization bill into law on Thursday, according to a Reuters report.
With the president’s signature, the country’s national medical cannabis program is set to launch in about six months, with draft regulations for the program expected within about three months.
The bill specifically legalizes medical cannabis access for people suffering from cancer and post-traumatic stress disorder (PTSD) resulting from the country’s defense against the ongoing military invasion by Russia, but lawmakers previously said they were being pressured to include other conditions including Alzheimer’s disease and epilepsy. The Ministry of Health of Ukraine — which backed the proposal — will be able to specify other debilitating diseases and conditions for which cannabis could be prescribed, the report said.
The new law requires patients to be prescribed medical cannabis by a doctor, and adult-use cannabis will remain strictly prohibited. Medical cannabis production and manufacturing in Ukraine will require special licenses; additionally, the law will allow for the import of cannabis products including raw materials.
Zelensky, who called for the legalization of medical cannabis during his 2019 presidential election campaign, had praised the bill.
Numerous studies have found cannabis to be an effective treatment option for patients suffering from PTSD and, in the U.S., the vast majority of state-legal medical cannabis programs allow patients with PTSD to access the program, according to the Marijuana Policy Project.
A federal racketeering lawsuit has been filed in Georgia against leading California cannabis brands STIIIZY and Cookies, along with 12 other co-conspirators, for allegedly selling marijuana products mislabeled as federally-legal delta-8 hemp goods. The lawsuit, seeking at least $150 million in damages, was reported by Green Market Report, which obtained a copy of the legal filing.
The class action suit accuses the defendants of misleading consumers, including Georgia resident Hannah Ledbetter, into purchasing marijuana products under the guise of them being legal hemp products containing 0.3% delta-9 THC or less, the federal threshold for hemp.
The lawsuit alleges that the defendants engaged in a pattern of racketeering activity to import, manufacture, distribute, and possess illegal THC vape pens labeled as hemp. It claims that products purchased by Ledbetter from multiple retail chains in Georgia contained delta-9 THC levels far above the legal limit, according to third-party testing.
The suit implicates a wide range of entities in the scheme, including retail chains, hemp manufacturers, distributors, and testing labs in California and Oregon accused of issuing falsified certificates of analysis to mask the true THC content of the products.
STIIIZY and Cookies, along with other defendants including retail and online outlets and testing laboratories, are accused of generating millions in fraudulent profit from the sale of these illegal products.
In a statement to Green Market Report, a STIIIZY representative dismissed the lawsuit as baseless and said the company intends to defend itself vigorously. Cookies representatives declined to comment due to the pending litigation. The lawsuit underscores the complexities and legal challenges in the cannabis industry, especially concerning the blurred lines between legal hemp and illegal marijuana products following the federal legalization of hemp in the 2018 Farm Bill.
Last August, California filed a similar lawsuit against several brands selling intoxicating “inhalable hemp products” without a cannabis license within the state.
Many other states have recently moved to bring hemp products under the regulatory control of their respective cannabis enforcement bodies, amid concerns about the issues of consumer deception and safety due to the lack of testing requirements for hemp products. Companies manufacturing these products, as well as licensed cannabis business owners who view intoxicating hemp brands as illegitimate competition, will undoubtedly be awaiting the results of these lawsuits with much anticipation as they are set to test the legal boundaries of cannabis sales and marketing in the United States.
As Thailand’s government considers rolling back its historic cannabis decriminalization reforms from two years ago, industry insiders say that cannabis entrepreneurs and operators in the country are readying lawsuits to protect their livelihoods, This Week in Asia reports.
The litigation threat comes after Thailand’s health minister rolled out legislation earlier this year that would effectively outlaw recreational cannabis consumption — implementing strict criminal penalties and banning cannabis products with a THC level above 0.2% — and aims to refocus the country’s reforms around medical use only.
The new Cannabis and Hemp Act has yet to be considered by lawmakers, who chose not to address the issue during their weekly meeting on Tuesday, the report said. But cannabis operators and investors are certainly concerned about the proposal: “Everyone is talking to lawyers,” cannabis dispensary owner Soranut “Beer” Masayavanich told This Week in Asia.
Benjamin Baskins, CEO of OG Cannab, which operates multiple dispensaries in high-tourism areas of Bangkok, said he expects lawmakers would need to make significant changes to the proposal if it were to move forward. “It’s hard to even take seriously,” he said.
“They’re going to have so many lawsuits. How are they going to deal with 7,000 lawsuits from dispensaries, and thousands more from growers?” — Baskins, via This Week in Asia
Cannabis advocates argue that lawmakers should seek to make changes to the proposal that recognize and regulate — rather than eliminate — the country’s nascent but booming cannabis industry.
The University of the Thai Chamber of Commerce estimated that Thailand‘s cannabis industry was worth nearly USD$800 million by the end of 2022 — only six months after the country’s decriminalization policy took effect — and could reach USD$1.2 billion by 2025, the report said.
South Carolina’s Senate voted this week to legalize medical cannabis access for people diagnosed with specific debilitating illnesses, the Post and Courier reports.
Sponsored by state Sen. Tom Davis (R), the Compassionate Care Act of 2024 closely resembles a 2022 proposal that passed the Senate but was ultimately defeated in the lower chamber. House lawmakers are expected to once again represent a major obstacle for the medical cannabis reforms.
Davis has described the bill as the country’s “most conservative” approach to medical cannabis, the report said. Only people suffering from debilitating or terminal conditions including cancer, colitis, sickle cell anemia, or severe neurological diseases like epilepsy would be allowed to access the program laid out in the proposal. Additionally, smokeable flower products would not be allowed; rather, patients would have access to unflavored edibles, tinctures, and vaporizers.
Cannabis production and dispensing would be closely regulated, with state-issued medical cannabis production and manufacturing licenses. Additionally, only licensed pharmacists would be allowed to dispense cannabis products.
Davis says the bill is specifically structured to avoid the perceived notion that medical cannabis legalization is a stepping stone for broader, adult-use reforms. Cannabis consumption without a prescription would still be considered a felony under the proposal, and the program — if approved in its current form — would automatically end after five years unless lawmakers take action to renew it.
Officials in the U.S. Virgin Islands have approved a list of rules and regulations governing adult cannabis access in the territory, the Associated Press reports.
Lawmakers approved the legalization policy last January but its implementation has stalled until this point. “We have been waiting a very long time for this,” said Dr. Catherine Kean, chairperson for the advisory board which passed the regulations on Tuesday.
Next, there will be a 30-day window for public feedback on the proposed rules.
Additionally, officials say they are finalizing the list of people who are qualified to have their cannabis-related criminal records expunged under the territory’s legalization policy. About 300 people were convicted for cannabis possession in the U.S. Virgin Islands over the last 20 years, the report said.
Under the adult-use law, adults aged 21+ are allowed to possess up to two ounces of cannabis, a half-ounce of cannabis concentrates, and up to one ounce of cannabis-infused edibles. Dispensary sales will be taxed a minimum of 18% with three-fourths of cannabis tax revenue reserved for the general fund including specific carveouts for behavioral health programs, youth programs, and addressing the housing crisis.
Hannah Carty, Executive Director of the Virgin Islands Cannabis Board, predicts in the report that cannabis entrepreneurs will be able to start the registration process this summer but that cultivation and manufacturing licenses will not arrive before next year.
The delays are sadly nothing new for cannabis advocates in the island territory, where medical cannabis was legalized in 2019 and yet a functional program has yet to be realized.
Cannabis possession of up to an ounce has been decriminalized in the U.S. Virgin Islands.
People caught possessing small quantities of cannabis in Idaho could face a mandatory $420 fine under a proposal introduced this week in the House State Affairs Committee, the Idaho Press reports.
Proposed by Rep. Bruce Skaug (R), the fine would apply to cannabis possession cases for any amount less than three ounces.
Idaho is one of three U.S. states — the others being Kansas and Nebraska — that have maintained an absolute prohibition on cannabis with no exceptions, not even for medicinal use or low-level possession cases. Meanwhile, cannabis is legal for adults in the majority of Idaho’s neighboring states, including Washington, Oregon, Nevada, and Montana, as well as across its northernmost border with Canada.
The bill mandating the $420 fine for low-level possession cases was formally introduced to the committee this week, meaning the proposal could be brought back for a public hearing, the report said.
Current Idaho law considers the possession of three ounces or less of cannabis a misdemeanor carrying penalties of up to one year imprisonment and/or a fine of up to $1,000. For possession cases between three ounces and one pound, it is a felony crime punishable by up to five years imprisonment and/or up to $10,000 in fines, and the penalties increase dramatically for cannabis trafficking felonies.
Another proposal introduced in the state last week is seeking to ban advertisements for illegal products after lawmakers witnessed billboards and newspaper advertisements in Idaho for out-of-state cannabis products.
In this insightful Q&A, we sit down with George Jage, co-founder of Jage Media and one of the organizers behind the popular cannabis trade show event, MJ Unpacked, coming to Atlantic City, New Jersey, this April. Having been organizing cannabis industry events for nearly a decade, George is at the forefront of convening cannabis entrepreneurs and investors, and has been navigating the complex landscape long before the ink dried on today’s regulatory frameworks. George also has a seasoned background in fundraising and a knack for fostering environments ripe for growth and collaboration. In this interview, George joins us to discuss:
The evolution of the cannabis industry from its early, unregulated days to the current environment.
How MJ Unpacked provides unique value as an event exclusively attended by license holders, applicants, investors, and other qualified guests.
How license holders and applicants can maximize the value of their attendance if they’re seeking investor financing.
What prospects and challenges for the cannabis industry lie ahead going into 2024.
Read the full interview below!
You have been coordinating gatherings for cannabis entrepreneurs and investors since before most of the current regulations were even written, and in those days, everyone had a different vision for what the industry would become. Over the years, what are some of the ways in which the industry evolved that surprised you?
Probably the most surprising and disappointing is the lack of progress at a federal level for cannabis reform. At the onset, it was clear that the 280e taxation was punitive and unfair as well as discriminatory banking policies. Truly little has been done to change this in the past 10-12 years.
The rest is expected. Early stage markets are messy and confusing. You have good actors and bad actors. You have huge success stories and epic failures. Everything is new so there are always opportunities to win and plenty to lose.
Do you think cannabis reform will be a significant factor in the upcoming US presidential election?
I hope not as this is not a political football. Biden made promises and if he can live up to getting cannabis rescheduled (and not make it an issue to bait the younger voters), I think the industry should rally behind him if he commits to further descheduling. This is a tough question to answer given the presumption options we have on who can lead our country in the next 4 years and the risk of civil unrest or turmoil that could follow this upcoming election.
While many conferences are open to everyone, MJ Unpacked is unique in its focus and audience, limiting attendance to vetted license holders and applicants, accredited investors, and qualified media & research personnel. How does this change the experience for attendees?
Honestly, we just listened to people and understood what they disliked about most of the events they went to. And on the top of that list was how many unqualified people they need to sift through to have a meaningful conversation. Trade Shows are like family gatherings. You want to have a sense of belonging. Talk with the people you have shared experiences with. Sometimes get in arguments, but mostly feel you are among your people who care about you and support you. Your tribe.
But I think what sets our team apart is our compassion and empathy for the people we serve. We never approach this as selling a booth or selling a ticket. This is about partnering with our exhibitors and sponsors to invest in an event to get a return on their marketing spend. That can in turn help grow their business, hire more people, serve more customers.
We like to say we are focused on outcomes, not our income. The latter is a function of being of service and value.
The next MJ Unpacked event is coming up this April in Atlantic City, New Jersey. What aspect(s) of the New Jersey cannabis market are you most excited about?
This event is not a New Jersey event despite misconceptions in the market. Our focus is on the east coast because this is where all the new investment and market growth will come from in the next several years. But this is still national in scope. At the past 2 events we did in New York, California operators were among the top 4 states represented in our attendance.
What excites me is how well New Jersey is rolling out its market and licensees. And Atlantic City is on the up and reminds me a lot of Vegas 20 years ago. It was a tough decision to leave midtown Manhattan as we love the city, the energy, the opportunity there, but as the industry remains undercapitalized, the AC event offers a lot of savings to our delegates and provides a more concentrated event environment. We don’t want to see the event go the way of MJBiz where the trade show has become second billing to the action in Vegas.
How does MJ Unpacked proactively help facilitate connections between brands and investors?
This is the very basis of why we created MJ Unpacked. Cannabis will mature into a CPG (consumer packaged goods) industry. Brands will be where the true wealth creation will come. Retail will support local economies and create opportunities for local business success. Cultivation will bifurcate into craft and commodity. We started MJ Unpacked to meet the needs of the market at the moment, but to more importantly provide a better, fairer, and more open market for these brands to flourish. To compete on value and authenticity. And to support the small to midsize businesses people who have invested everything to make the industry not only what it is today but will be in the future. We truly want to support the personal and professional growth that happens when you have a brand new industry emerge.
That said, I think you were asking specifically at our events. Sorry for the soap box speech. I think the power of the connections comes from our event design. We know that walking a Home Depot style event that is endless aisles of sameness often leads to disengagement or overload. We intentionally design our event to create an experience that connects everyone in the room.
A simple tool is to create a lot of soft seating. Allowing people to sit down and have a conversation, establish trust and THEN be able to conduct business. On the tech side, our exhibitors and attendees can message each other leading into the event and schedule time to meet on the show floor or in one of the lounges. We designed our own lead gen tech so it is as easy as opening your camera and taking a pic of a QR code that can then be stored in your phone or accessed daily from your lead report. There is much more we put into our design that makes MJ Unpacked unique that would be too long to go into.
What advice would you give to founders who are attending MJ Unpacked specifically to meet potential investors?
Be prepared. The lack of capital in a growth market is the fundamental reason our industry is struggling. Period. Many early angel investors are tapped out or tired of losses. Many VCs have limited dry powder and are conserving it to support their existing portfolio companies. PE and institutional capital hasn’t overtly entered the game (yet). And if you’re raising money for a private venture, you’re competing against public companies that investors can buy at a 90% discount and exit whenever they want.
You need to be able to communicate your UVP effectively. How will you differentiate in the market? Gain customers? Scale with efficiency? Investors have seen and heard most before. You need to be able to demonstrate you have a solid plan and the team to execute. You need to show you can weather the storm. Turnover is rampant so your team better be bought into the vision (through equity).
There is money out there, but as noted, the competition is fierce. Grit, persistence, consistency are required, not unique.
If you were looking for an easy road to riches and picked cannabis, you might want to turn around and head back. It is bumpy and filled with pitfalls, but the reward is way beyond what any of us can imagine. Setting aside the opportunity to create wealth, equity, fame or fortune, we are collectively building a brand new industry and changing the world, for the better I believe. That needs to be the core source of your strength.
And after that doom and gloom, I am optimistic that if we achieve Schedule 3, this will have a radical impact on the available capital to the market. But you still need to be buttoned up and on top of your game to get it. The money that will come in next will be more cautious, more demanding, and have higher expectations (no pun intended).
Can you share a success story or two from past MJ Unpacked events where connections made at the conference led to significant outcomes for attendees?
This is what drives us and honestly, there have been too many to mention. But here’s a short list of my favorites. Mr. Moxey Mints exhibited in NY-22, signed a deal with Acreage to expand to 10 states. Matha Figaro participated through our social impact scholarship, met Azuca, got her NJ licensed and is launching her product right now. Seed Talent refused to break down early and 15 minutes before the end of the show had a buyer come in (who thanked him for not breaking down early) and closed the biggest deal of the event for his company. 40 Tons launched their brand at our inaugural event and we even designed their prison cell concept for them that now has become a signature part of their brand.
From your vantage point, what would you say investors and VC firms in the cannabis space are looking for right now? And how might sentiments change later this year if there is policy movement at the federal level, such as Schedule III status or SAFE banking?
I think they are starting to make moves into brands. Many are still playing the safe route to invest in ancillary, especially scalable tech due to the high margins of that business, but there are fewer and fewer new opportunities there. But if you really want to know, you can hear it directly from the horse’s mouth. We are having a Mega VC panel at MJ Unpacked titled Who’s Got Money and Where Are They Putting it.
Federal reform at this point is a requirement for our industry to move forward. 280e taxation was designed to bankrupt companies. The industry needs leadership and a united voice, not just that of the larger companies who can fund lobbyists, but truly the entire industry to unite behind the efforts of getting cannabis rescheduled.
Safe or Safer banking will follow. Then interstate commerce and eventually federal legalization.
When it comes to taking moisture measurements, not all sensors are created equal. Here’s the challenge…
Growing outdoors in soil versus growing in a greenhouse or indoor environment using Rockwool or other substrate materials, is not the same. The main reason is that the electrical conductivity (EC) in soil is typically less than 0.5 dS/m. On the other hand, substrate materials contain much more water than soil, and this water typically has higher conductivity due to the much higher nutrient concentration. As a result, EC values are typically 10-20 times higher in substrate materials than in soil.
And yet, all the instruments cultivators use to take moisture measurements were designed only with soil in mind. These instruments are not new; they’ve been around for 50 years and have served traditional agriculture well. But when we tried to use such instruments in greenhouse environments in recent years, the limitations of these technologies became apparent.
Consider a sample material between two electrodes. If the material is conductive, the system can be represented as a capacitance and a resistance in parallel. The capacitance accounts for the amount of water in this supposedly porous material; the resistance (reciprocal of conductance) accounts for the presence of dissolved nutrients. Low-cost moisture sensors have traditionally relied upon a technique known as capacitance measurement. But the fact is, attempting to measure just the capacitance of a conductive sample is very difficult.
We developed the new TEROS ONE substrate sensor to address these limitations. The approach is to measure both capacitance and conductance at once – not just capacitance. Known as complex dielectric measurement, this technique permits measuring both water content and electrical conductivity with the same instrument. Through lab testing, we discovered the following:
When measuring permittivity and conductivity in water or standard solvents, the TEROS ONE yields accurate measurements of dielectric and conductivity for EC values up to 20 dS/m. That’s equivalent to roughly half the conductivity of the ocean.
We also tested the TEROS ONE in Rockwool and compared it to a competing sensor. Salinity has no impact on dielectric measurements, hence on water content estimates, and this is what we observed with the TEROS ONE. However, when we tried the same test using a capacitance sensor, we found that the conductivity of water does impact measurements – resulting in incorrect water content estimates. Likewise, pore water EC estimates with this capacitance sensor are severely affected by water salinity.
The California cannabis industry could experience significant changes under a draft bill introduced last week to the California Assembly, according to a Canna Law Blog analysis.
Sponsored by Assemblymember Cecilia Aguiar-Curry, the draft bill AB-2223 could have some major implications for the industry, including:
Cannabis manufacturers and other operators would be allowed to use hemp and its derivatives, and regulations to that end would be required by July 1, 2025. The products would still be required to comply with industry rules including track-and-trace measures.
The proposal would also crack down on so-called “synthetic cannabinoids” — operators would not be allowed to use delta-9 THC “that has been converted from a hemp-derived cannabinoid,” and retailers would not be allowed to sell products containing “converted delta-9 tetrahydrocannabinol,” the report said.
The proposal would also bring new standards for hemp food and beverages including rules to regulate serving sizes and the number of servings (five) allowed per package, as well as definitions for hemp dietary supplements including pills, tablets, and capsules.
Notably, the draft proposal is still very new — some sections were even left blank by the drafters, including the maximum amount of THC that would be allowed under a proposed potency cap — and the bill could undergo significant changes before becoming law (if it advances at all).
California voters passed adult-use cannabis legalization in 2016 and the state’s adult-use industry launched in 2018. The state currently operates the largest legal cannabis industry in the world with $5.9 billion in combined medical and recreational sales in 2023.
Editor’s note: this article was written by LJ Dawson for The Outlaw Report, and has been republished with permission.
Maryland is the most recent victim of a California lawyer and cannabis entrepreneur’s serial suing of state cannabis social equity programs.
Jeffrey Jensen filed a lawsuit on behalf of his wife Justyna Jensen, both of whom live in Pasadena, California. Jensen claims that the Maryland Cannabis Administration’s requirement of state residency to qualify for social equity is unconstitutional.
Jensen is using the dormant commerce clause of the constitution to allege that Maryland is discriminating against Justyna because she is an out-of-state resident. Though her university met the requirements for social equity applicants with 40% of the individuals qualifying to receive a Pell Grant, she was denied because the university was in California not Maryland.
MCA has until Feb. 20, 2024 to file a response in court to the lawsuit. Jensen has used the dormant commerce clause to file lawsuits elsewhere.
His Maryland case is one of at least six lawsuits he filed in the last two years in four states. He filed suits under similar allegations in California, Washington and New York.
His first lawsuit in New York was settled out of court, and he successfully secured a license in his settlement. But not before causing a months-long injunction or halt of licensing in 2022. This pause caused an already beleaguered New York market to lose even more valuable time in its attempt to launch.
Early this February, a federal New York judge rejected Jensen’s second case and plea for another licensing injunction. She claimed that the public interest of letting state-legal cannabis businesses launch overshadowed the lawsuit’s concerns.
In all his lawsuits in New York and Washington, Jensen is actually 49% owner of the companies. It is not yet clear how much he owns of his wife’s company in Maryland that was denied a license in December 2023.
Both Mr. Jensen and Mrs. Jensen applied together with an arm of Cookies’ corporations and L.A. based Blaqstar for a retail cannabis license in Pasadena, California. According to that 2019 cannabis retail application, Mrs. Jensen, the Maryland plaintiff, grew up in Poland and immigrated to America in 2002 to attend graduate school for financing. Mr. Jensen is self-described as being involved in cannabis law since 2016 and passionate about social inequity.
A judge denied Jeffrey Jensen’s Washington state injunction in January. He made similar claims of discrimination against out-of-state residents. However, no final order has been delivered as Jensen is attempting to pursue litigation specifically related to his company’s license.
He filed the lawsuit on behalf of a Michigan cannabis entrepreneur, Kenneth Gay, who is also his partner in business and plaintiff in separate New York and California lawsuits. Gay and Jensen own Peridot Tree WA INC, the California based cannabis company and plaintiff in the Washington lawsuit.
Jensen appears to benefit if he wins any of these cases as a significant owner of several of the businesses. New York filings accused him of being in “sole control” of the companies applying for cannabis licenses in New York. Maryland’s cannabis community will undoubtedly await the MCA’s response with much anticipation, knowing that Jensen’s lawsuit could potentially cause a delay in Maryland’s licensing.
The U.S. Navy is no longer immediately disqualifying recruits who test positive for THC while attending boot camp at Recruit Training Command in Great Lakes, Illinois, Military.com reports.
According to Rear Adm. James Waters, the director of the Navy’s personnel plans and policy division, the goal of the policy change is to boost recruitment opportunities as cannabis is becoming more prevalent and legally accessible.
“If they fail that test and own up — ‘Yes, I smoke marijuana ‘– we do an evaluation of the young person to make sure there’s not something else going on. But we trust that through the process of boot camp that we have an opportunity to bring them along with our culture.” — Waters, via Military.com
Waters said the move makes the Navy more “reflective” of the reality of cannabis policy in the U.S.
“We recognize that many states have legalized marijuana,” the admiral noted; however, he also said that the policy change only applies to cannabis and he stressed that “we don’t do drugs in the military,” the report said.
The new policy also coincides with other changes the Navy has made to streamline the recruitment process, including adjustments to the pre-boot camp physical training regimen.
The recruitment policy change comes as President Joe Biden (D) considers a recommendation from the U.S. Department of Health and Human Services that cannabis be moved from Schedule I to Schedule III on the Controlled Substances Act (CSA). A group of Senate Democrats, meanwhile, last month called on the Biden Administration to deschedule the plant from the CSA entirely, which would effectively end federal cannabis prohibition.
The mayor of Winnebago, Minnesota, and his son were arrested on Thursday after being linked to multiple commercial-grade greenhouses being used to grow illegal quantities of cannabis, the Fairmont Sentinel reports.
According to court documents, multiple law enforcement agencies launched a cooperative investigation into the grow sites in January 2023 after the South Central Drug Investigative Unit received an anonymous tip in that greenhouses in Winnebago were being used to grow cannabis plants.
Adult-use cannabis is legal in Minnesota and residents aged 21+ are allowed to grow their own cannabis plants at home — but there is a limit of eight plants, with a maximum of four flowering at once, per household. Police reported discovering about 240 cannabis plants between multiple properties linked to the father-son duo, who were taken into custody on Thursday, the report said.
FOX 9 reports that Mayor Scott Robertson (67) and Jacob Robertson (46) were each charged with the unlawful cultivation of cannabis and have admitted their involvement to investigators, and said that they were the only people involved in the operation. The men were also reported to have posted bail and gotten out of jail as of Sunday.
Mayor Robertson was in the second year of a two-year term as Winnebago’s mayor after winning a write-in vote in 2021.
Minnesota’s cannabis legalization law took effect last year on August 1, and the state’s regulated cannabis sales are expected to launch sometime next year.
