Cannabis Activists Oppose Massachusetts Social Equity Changes

5/11/2020

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A group representing Massachusetts social equity applicants has launched a petition urging regulators to repeal recent changes to the state’s Economic Empowerment Program which set the ownership threshold for such applicants to just 10 percent.

Previously, the requirement was 51 percent. 

The Urban Cannabis Grow Op Association says they have “deep concerns and reservations” over the rule change and that the 10 percent equity stake requirement “feels like a race to the bottom.”

“In the short time since this policy change has been made, some of us have received calls indicating that investors are now tearing up previous contracts they had with economic empowerment applicants and social equity applicants prior to this regulatory change.” – Urban Cannabis Grow Op Association in their Change.org petition.

The group says the change “watered down” the program and misrepresents what it originally promised, calling the changes “an affront and insult” to members’ integrity “and to that part of the [economic empowerment] concept.”

Moreover, the organization says the rule change is “in direct conflict” with some city and town ordinances, such as Boston which requires 51 percent ownership for social equity applicants seeking a cannabis industry license.

“This policy change by the [Cannabis Control Commission] has unilaterally compromised our ability to negotiate a fair deal, because this has greatly lowered the floor of our ownership/equity discussions, which is the exact opposite of empowering,” the group says on the petition site. “A 10 percent stake in a company is where ownership and control are expected to be less than dignified for a community that has paid tremendously and still pays in countless ways.”

In addition to pushing for a rollback of the rule, the group wants the CCC to explain why the change was made, what data was used to make the change and how that data was acquired, why there were no public hearings about the change and why the people most affected by it were not consulted, and what plans the CCC has for ensuring transparency if they change the rule back.

As of this morning, the petition had nearly half of the 500-signature goal. The petition was created on May 4.

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Oregon Hemp Company Sues Two Sheriffs’ Offices Over Crop Raid

5/11/2020

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An Oregon hemp company is suing sheriff’s departments from two counties claiming they unlawfully seized and destroyed more than $2 million worth of its crop, the Capital Press reports. The company asserts that the law enforcement agencies claimed the crop was THC-rich cannabis and that the search warrant used in the raid contained “false statements.”

The complaint is filed against the sheriff’s departments of Josephine and Jackson counties and alleges that law enforcement executed a “facially invalid” warrant to search for illegally-grown cannabis on April 22 at a property in Williams leased by the Oregonized Hemp Co. and its owner, Justin Pitts, the report says.

Despite being told the crop was legal industrial hemp, the complaint says officers “explicitly rejected” the warnings and confiscated 5,000 pounds of the company’s crops. According to the Press, neither civil nor criminal charges were filed against Pitts for unlawful cannabis production. The complaint alleges that the crops were regularly tested by state the state Agriculture Department and were below the 0.3 percent legal threshold.

The complaint further alleges “a pattern and practice” of intimidation and harassment by the counties’ law enforcement agencies toward the company and Pitts and alleges that they have been denied equal protection under the law, the report says.

The lawsuit seeks $2.5 million in compensation from the counties for unlawful seizure, unlawful taking and violations of due process because the search warrant wasn’t supported by probable cause. The lawsuit alleges that the sheriff’s departments destroyed the hemp “to cover up the fact” that they had unlawfully confiscated the plants in the initial action.

 

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San Francisco Offering Cannabis & Other Drugs to Help the Unhoused Shelter In Place

5/08/2020

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The San Francisco Department of Public Health (SFDPH) said it is using private donations to administer medical cannabis and other drugs to help unhoused individuals who have quarantined inside of hotel rooms paid for by the city, KTVU reports.

Health officials say it’s one part of the city’s plan to help the unhoused population stay indoors and in one place during the ongoing shelter-in-place coronavirus response order. The SFDPH confirmed its strategy of providing substances that addicts would otherwise go searching for in a tweet on Wednesday.

The department said staff had received several medical cannabis deliveries for patients with prescriptions and that about 10% of the hotel guests had received tobacco products. 11 guests had been given “medically appropriate” amounts of alcohol to stave off withdrawal symptoms, officials said in the report, and methadone was also available from methadone clinics for people with heroin cravings.

“With regard to supporting people who are at risk, or who need to be in quarantine or isolation because they’re COVID positive, our focus needs to be on supporting them. Meeting them where they are so that they can be cared for in the most appropriate way. In the way that’s good for them and for our community.” Dr. Grant Colfax, San Francisco’s Department of Public Health director, via KTVU

The practice has sparked controversy online, with some critics arguing that the city should not be giving away free drugs as it could further fuel addiction problems; others said that the city should not make addiction treatment services voluntary (which they are) for addicts who are being housed in the hotels.

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Cannabis Industry Reports Lackluster 4/20 Sales

5/08/2020

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April 2020 was supposed to bring the cannabis industry’s biggest 4/20 sales day ever but stay-at-home orders and mandatory social distancing due to a deadly global pandemic dampened the long-awaited holiday. Across the board, cannabis retailers, software firms, and data companies reported major dips this year compared to 4/20 sales from previous years.

Making up for lackluster sales on the holiday itself, however, most operators reported heightened sales during the previous week.

Data reports

Cannabis data firm Headset confirmed that the industry’s 4/20 sales peak this year was not as big as other years’ but said that sales instead were expectedly high during the week leading up to 4/20.

“The week before 4/20 is always a good one for sales, but it was significantly higher than a normal April week this year — 25% higher than the previous week, as opposed to only 22% higher last year,” Headset analysts reported during a deep-dive on the Washington marketplace. “Ultimately, it seems like consumers spent as much overall as they would have normally.”

The data company, which has started releasing weekly COVID-19 industry updates, also noted that the pandemic has shifted product preferences, with pre-rolls and concentrates dropping and edibles spiking in popularity.

Point-of-sale software firm Cova reported that its clients experienced approximately 50% drops in total sales, gross profit, and average traffic compared to last year’s 4/20 but that average basket size was up 17%. Moreover, the software firm confirmed that its clients’ sales were up overall during the month of April, likely due to a stockpiling effect from various shelter-in-place orders.

Dispensaries weigh in

Dominic Ippolito, general manager for the Smoking Crow dispensary in Bellingham, Washington, told Ganjapreneur that they ran their holiday sale from Friday 4/17 until Monday 4/20 in hopes that it would stop the shop from getting overcrowded. Ippolito reported fewer transactions on the actual 4/20 holiday — from 456 last year to just 295 this year — as well as a significant drop in gross sales, but said that the average basket size at the dispensary increased from $35 to $59.

In San Francisco, Stephen Rechif, who manages the Bloom Room Collective downtown, said their 4/20 was “super slow.”

“We had about 50% of our regular sales, 50% of the usual foot traffic,” said Rechif, who also suggested that the dispensary’s location near the city’s tourist and financial centers likely played a part. “We are getting hit much harder than neighborhood dispensaries and deliveries,” he said.

Eva Sigersted — consultant for Tru|Med in Phoenix, Arizona — said they ran their 4/20 sale for the week prior.

“Since 4/20 was on a Monday, most people had already come in for the sale on Thursday or Friday,” Sigersted said. “It was actually a relief for all of us who have been working harder than ever to serve AZ MMJ patients while staying safe, healthy and socially distancing.”

Not every market, however, experienced the same obvious drop in product sales: 4/20 medical cannabis sales in Pennsylvania appeared to be up compared to last year, but that is more likely due to the relative nascency of the market, which launched in 2018. Solevo Wellness, which operates three medical cannabis dispensaries in the state, reported upticks in both revenue and customer visits, although the average ticket price dropped, according to operations manager Rocco Levine.

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Top Massachusetts Cannabis Regulator Calls for Reopening Adult-Use Dispensaries

5/08/2020

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Massachusetts Cannabis Control Commission Chairman Steve Hoffman said yesterday that he believes the state’s recreational cannabis dispensaries could reopen by employing the social distancing protocols adopted by medical cannabis retailers, the Boston Globe reports. Adult-use sales in the state were shut down by Gov. Charlie Baker (R) amid the state’s coronavirus stay-at-home order in March.

During his remarks at a virtual press conference yesterday, Hoffman said it was “unfair” that Baker shut down recreational sales and that the industry does not qualify for federal assistance aimed at standing up businesses affected by pandemic shutdowns. State Senator Diana DiZoglio (D) proposed legislation earlier this week to give the industry financial assistance from the state.

Commissioner Shaleen Title said during the press conference that the “most straightforward form of economic relief is for these businesses to just be able to open again.”

“I have no concerns whatsoever that we can operate this business safely. I think we’ve demonstrated that we can do so on the medical side of the business… [and] I think there’s absolutely no reason we can’t do exactly the same thing on the adult-use side.” – Hoffman during a press conference via the Globe

The state’s medical dispensaries were deemed essential businesses and have implemented precautions such as curbside pickup, appointment-only shopping, and contactless transactions; the shops have remained operational during the state’s coronavirus response. According to a MassLive report, Massachusetts saw a 14 percent increase in medical cannabis certifications in April, from 63,720 in March to 75,502. The state also saw more than 10,000 more ounces of medical cannabis sold from March to April, from 51,836 ounces to were 65,155 ounces, respectively.

Baker was sued over the closure of recreational cannabusinesses last month, and a judge would ultimately rule in his favor, saying that plaintiffs would have “little chance” to prove Baker did not have a “rational basis” for the action which would have been required for a positive judgement.

Hoffman said that he hopes to meet with members of an advisory board convened by Baker to plan the reopening of the state’s economy so he can “convince them that we are totally confident” cannabis stores can reopen safely, regardless of whether the state considers them “essential.”

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Whistleblower Complaint Sparks Investigation of Missouri Cannabis Licensing Process

5/08/2020

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The Missouri House Special Committee on Government Oversight is investigating the state’s handling of medical cannabis industry licensing and is seeking records from Gov. Mike Parson’s (R) deputy chief of staff, chief operating officer, and Steve Tilley, a longtime lobbyist and advisor to the governor, the Kansas City Star reports.

The investigation follows public testimony by members of the administration and cannabis regulators earlier this year, along with a whistleblower complaint from a purported Department of Health and Senior Services (DHSS) employee. The complaint accuses department officials of lying during that public testimony and questions the salaries and qualifications of those running the program.

The investigation is focused on reports of irregularities in how the license applications were scored – that Wise Heath Solutions, the private company hired to score them, may have tainted the process – and conflicts of interest within DHSS, the report says. Wise Health is a joint venture of Nevada-based Veracious Investigative & Compliance Solutions and Oaksterdam University.

Lawmakers are seeking records about how DHSS decided to rely on a private company to score the applications and how Wise Health Solutions won that contract. They are also seeking records on controversial rule changes DHSS enacted throughout the application process that have angered many license seekers and led to appeals by would-be operators.

One such change includes DHSS saying it would grant bonus points for applicants who located their operations in areas of high unemployment; however, that change was announced shortly before the final rules for applying were finalized and after many applicants had already purchased property, drawn up plans, and paid fees to the state.

As of March 4, more than 800 appeals had been filed by companies that were denied state licenses to operate a medical cannabis business in the state and many of the appeals argue that the scoring system used in the licensing process was flawed. A review by the St. Louis Post-Dispatch found that some two dozen groups, which each won five or more licenses, had ties to out-of-state cannabusinesses or the Missouri Medical Cannabis Trade Association – or MoCannTrade – whose lobbyist is Tilley.

The House committee had paused the inquiry due to the coronavirus pandemic but reopened the investigation after DHSS Director Randall Williams indicated staff had resumed their work and dispensaries were set to open this summer.

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Arkansas Medical Cannabis Sales Spike During Stay-at-Home Order

5/08/2020

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Since Arkansas Gov. Ava Hutchinson (R) signed the executive order declaring a public health emergency, medical cannabis sales in the state reached $24.37 million – about one-third of total sales since May 2019, KUAR reports.

Hutchinson signed the order on March 11.

Scott Hardin, director of communications for the Department of Finance and Administration indicated that Arkansans are making the maximum purchase of 2.5 ounces every two weeks, adding that those purchases can total $1,000.

“We saw the [Centers for Disease Control] in March, with the recommendation that Americans have a two-week supply of prescription drugs. And it looks to us like in that exact same time frame… people made the trip to the local pharmacy and then followed that up to the dispensary, really taking those guidelines pretty seriously and making that maximum purchase.” Hardin to KUAR

Currently, only 22 of the allowed 33 medical cannabis dispensaries are open in Arkansas and regulators must make renewal decisions for all license holders by the end of June, the report says.

The coronavirus pandemic has had varied effects on the cannabis industry. Retail sales were mixed and dependent on state actions and responses, but capital raises have sputtered since the start of the year with just two totaling $5.6 million as of March 27. Comparatively, the industry saw 17 capital raises totaling $169 million over the same period last year.

Oklahoma, for example, saw its highest medical cannabis sales ever – $61.4 million – amid the pandemic, while Illinois reported its second-highest sales total for both medical and adult-use cannabis sales since the legal market launched in January. But some operators have reported lower-than-normal sales during the pandemic.

In all, Arkansas medical cannabis sales have totaled $73 million or about 11,000 pounds.

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High Times Appoints New CEO After Stormy Simon Exit

5/07/2020

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Hightimes Holding Corp. has appointed Peter Horvath as new CEO after Stormy Simon suddenly resigned from the post earlier this week. Horvath is a former chief commercialization officer of American Eagle Outfitters and former chief operating officer at Victoria’s Secret.

Horvath is the third person to hold the position for Hightimes in just over a calendar year. Simon took over as CEO from Kraig Fox last January; Fox was hired last April. Last month, Simon announced plans to run for Utah’s state House of Representatives as a pro-cannabis candidate but it’s unclear whether the decisions are related.

In a statement, Horvath called High Times “a unique brand with an important and rich heritage that deserves amplification and broader reach.”

“I think of brands like Glossier, who first earned high affinity followers through compelling and relevant content, and then demonstrated that you can also serve their followers through commerce. So, it’s been done before, I wouldn’t suggest that it will be easy, but we have all the resources to succeed. I look forward to joining Adam [Levin]’s accomplished team at High Times, and I am intent on understanding, protecting, and building on the High Times legacy.” – Horvath in a press release

Levin said there are “few executives” with Horvath’s retail experience “in the mainstream world and, up to this point, none in the cannabis world with such an accomplished background.”

The shakeup marks the latest in Hightimes’ ebb and flow of late, which saw them in January express “substantial doubt” in the magazine’s future and hire Simon later that month who indicated the company would pivot to touching the plant. In February, the company would receive a trading symbol, and in March the company reached a deal to Acquire Humboldt Heritage and Subsidiaries.

During the coronavirus pandemic, the firm suspended the publication of DOPE and Culture magazines – which they acquired last year but would subsequently reduce staffing at both publications.

Earlier this month, the company announced it had acquired 13 California dispensaries from Harvest. Simon was absent from that announcement. That deal is expected to close June 30.

Neither Simon nor Hightimes have offered an explanation for her exit.

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Ben & Jerry’s Joins Activists’ Call for Cannabis Reforms

5/07/2020

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While other mainstream brands frequently push cannabis-themed advertising campaigns for the 4/20 holiday, Ben & Jerry’s took the opportunity this year to champion responsible cannabis reforms in a company statement published April 20.

The ice cream maker specifically called for national legalization efforts that would include the expungement of prior cannabis convictions.

“Legalization must have equity at its heart. That’s why we’re calling on Congress to support the MORE Act, which would make cannabis legal and … expunge prior cannabis convictions.” — Ben & Jerry’s company statement

Unfortunately, the company points out, legalization reforms so far have failed to address the biggest issue with cannabis prohibition: its unfair and racially disparate enforcement practices. Even now that 11 states that have legalized adult-use cannabis, Black Americans are still 253% more likely to be arrested for simple possession.

Ben & Jerry’s has thrown its weight behind the cannabis movement before: founders Ben Cohen and Jerry Greenfield are both outspoken about having used cannabis and in 2015 they said they would consider releasing a cannabis-infused ice cream line when legalization happens on the national level. Meanwhile, the company leaders already committed last summer to shipping a CBD-infused product line once the appropriate regulations are in place.

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Pennsylvania Poll Shows Legalization Unlikely to Offend GOP Voters

5/07/2020

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A recent Pennsylvania poll found that one-third of Republicans “would enthusiastically support” re-electing a lawmaker who voted in favor of legalizing cannabis for adults, according to a WESA report. The survey was conducted by Republican pollster Harper Polling for the Pennsylvania Cannabis Coalition and found, overall, 62 percent of likely voters support legalization in the state.

The poll found that only 9 percent of GOP voters would vote against a legislator on the basis of a vote supporting the reforms.

“Far from being an electoral drag, supporting adult use cannabis has positive effects for a Republican legislator. … Meanwhile, a third of Democrats would be more likely to vote for a Republican legislator who they knew ‘supported controlling, regulating and taxing the sale of adult use cannabis.’” – Harper Polling in a memo via WESA

Democrats and Republicans also agreed – 57 percent to 58 percent, respectively – that, if legalized, cannabis should not be sold through Pennsylvania’s state-controlled liquor stores. Between two-thirds and three-quarters of likely voters polled also preferred that the state tax the sale of cannabis “as a way to address the state’s projected budget deficit” rather than raise other existing taxes on income, sales, and businesses.

The poll was conducted between April 21 and 26, and while it was conducted for a pro-cannabis group, the overall support for legalization mirrors a Franklin & Marshall College poll from March 2019 which found 59 percent support for the reforms.

Democratic Gov. Tom Wolf supports legalization. Currently, a cannabis legalization bill introduced in February remains in the House Health Committee.

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Adult-Use Bill Introduced in Minnesota

5/07/2020

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Minnesota House Majority Leader Ryan Winkler (D) has introduced adult-use cannabis legalization legislation which includes eight-plant home grows, social-use, and expungement for most cannabis convictions, but it’s unlikely to pass this session which ends May 18.

Winkler announced plans to introduce the bill last February and said in a press release that while the coronavirus pandemic is the “current priority” of state lawmakers, he wanted to “follow through” on the commitment to introduce the legalization measure this session.

“Minnesotans have been loud and clear that our current cannabis laws are doing more harm than good. By creating a regulatory framework we can address the harms caused by cannabis and establish a more sensible set of laws to improve our health care and criminal justice systems and ensure better outcomes for communities.” – Winkler in a statement

The bill does not include a tax or fee structure, but it does cap industry application fees at $250. The measure includes provisions for so-called microbusinesses in an effort to help drive the craft cannabis market in the state.

During November’s CannaConMN Symposium, Sal Barnes of the Marijuana Policy Group, estimated that recreational cannabis products could bring in $300 million to state coffers over five years on sales of $1.12 billion and create 20,000 direct and indirect jobs statewide. During that event, Winkler predicted that House Democrats would introduce a bill for the 2020 session and predicted that while it would pass the Democratically-controlled House it would likely falter in the Republican-controlled Senate.

Minnesota lawmakers introduced a bipartisan legalization bill during last year’s session, but a Senate committee voted to kill the bill after its Republican co-author said he wouldn’t vote for it but would instead support decriminalization.

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Andi Novick & Brian Farmer: Fighting for Craft Cannabis In New York

5/06/2020

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Andi Novick is a New York lawyer/activist combo and Brian Farmer is co-founder of the Cannabis Conservancy — together, they have partnered to help lead New York Small Farma in its push for regenerative and sustainable cannabis farming in the state of New York. For the latest Ganjapreneur.com podcast, the two joined our host TG Branfalt to discuss New York’s legalization prospects, what they hope the Empire State’s cannabis industry will look like, why it’s important to specifically write opportunities for small farmers and craft cannabis businesses into state legislation, and more!

Tune in to this week’s podcast episode via the media player below, or scroll down to read along with a full transcript of the interview.

Editor’s note: This interview was recorded prior to the COVID-19 pandemic and some of the episode’s key points of discussion — such as New York’s 2020 legalization prospects — have unfortunately shifted since then.

Listen to the podcast:

Read the transcript:

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TG Branfalt: Hey there. I’m your host, TG Branfalt, and thank you for listening to the Ganjapreneur.com Podcast where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders.

Today, we’re going to be talking about my home state of New York with Brian Farmer and Andi Novick. They are board members for New York Small Farma, an industry community working to ensure social and environmental justice for cannabis growers and supporters in New York State. Andi is also an attorney and farmer, while Brian is also the co-founder of the Cannabis Conservancy, and he’s making his second appearance on the podcast. How you guys doing this morning?

Andi Novick: Great. Thanks for having us on.

Brian Farmer: Thanks, Tim.

TG Branfalt: Absolutely a pleasure. Before we sort of get into what your organization does and we talk about New York, why don’t you give us sort of a brief background on yourselves? How did you end up in the space?

Andi Novick: Brian, you want to start?

Brian Farmer: Well, sure. I’ll do a quick one. I’ve been involved in organic agriculture for three decades. About four and a half years ago, co-founded the Cannabis Conservancy, which is a sustainability certification that has now moved international. We’ve been working on that on the ground very hard for four years. So, that’s how I came into the, quote, “cannabis space,” the industry as such.

So, we’ve been really working around sustainability issues in this country, in terms of our certification, and this seemed to really link up with what Andi got started here. And I’m very interested, because I live in New York as well, about how this is all going to play out. So, we want to make it as sustainable as possible.

Andi Novick: Okay. My turn. So, this is Andi, hi. I first started … I’ve always been comfortable with cannabis, but I first really looked into it about seven, eight years ago when a really good friend got cancer, and I was looking for alternatives, and at that time, I thought that cannabis was good for nausea and for stimulating appetite, and found through my research that, “Whoa! It could actually kill cancer cells in certain situations and leave the good cells.” And so, I started paying attention, and the medicinal benefits were extraordinary.

And that was sort of it until about a year and a half, almost two years, ago when the plant actually spoke to me during my meditation and she said, “Look, someone’s got to do something. I don’t have a voice. You have a voice. But they’re about to lock me …” Well, “Increase the locking me in the windowless warehouses, and I’m never going to see the light of day, and I’m going to be sprayed with all sorts of growth hormones and toxic chemicals. And someone needs to say something.”

So, I took it on. I don’t have a business. I’m an activist, but I’m an attorney, and this is an actual trajectory for me because I’m a farmer. So, I suppose the plant is my client. And I founded this organization about a year and a half ago, and realized that the legislature was already, last year … It was the third year they were taking up the issue of ending prohibition, and I was in there saying, “Wait, wait, wait! You don’t even mention that it’s a plant in any of the statutory language. It’s a crop. It’s a plant. Farmers should be growing it.” And they were like, “What do you mean? It’s a drug.” And so, that took last year in trying to get over on them.

And this year, I have to say Brian and I have been up to Albany, and we’re all going back again this week and next week. We’re really busy. And people aren’t looking at me with the same three heads as last year just for mentioning it’s a plant as opposed to a drug.

TG Branfalt: Well, and I want to mention that, last year, just for the listeners who don’t know, New York did vote on legislation and basically it ended up being squashed in the Senate by largely downstate Democrats, just so we are speaking the same language here.

So, tell me, what does your organization do and why is an organization with your mission important as New York eyes legalization this coming session?

Andi Novick: So, our organization is really important, and sometimes we sit around, a small group of us, thinking about how in this great state of New York are we the only ones working on this? But there it is. What’s really important is we’re no longer talking about, “Is cannabis going to get legalized? When’s it going to get legalized?” It’s going to happen, whether it happens now, which it looks like it will, or a year from now, isn’t so much the issue for us as how it’s going to get grown.

It’s true that we want to end prohibition first and foremost to end the racial discrimination and the way in which prohibition has been enforced. And there’s a wonderful coalition in New York that’s doing that work, which freed us up to let go of that issue and just focus on the issues we focus on because nobody else is, and that is the planet, the environment, the plant, the soil, how the plant is grown.

We advocate that, in exchange for this license, the state require that the plant be, as much as possible, or as much as we can get out of it, grown outdoors, including in greenhouses, but using the sun as energy, and grown regeneratively, and grown without any synthetic chemicals, any pesticides. And that the greatest attention be paid to craft farming.

So, we propose that 50% of the demand in New York, which is huge, be supplied by small farmers outside, and that the small business industry, whether it’s farming, or whether it’s creating product, whatever, we want to see this $3 billion that New Yorkers are willing to shell out of their pockets every single year for cannabis, we want it recirculated in New York State by way of lots and lots of small farms and small businesses throughout the state. We do not want to see those $3 billion being dissipated in the pockets of a few large cannabis industries while our legislators fight over where the 300 million is going to go. That’s the tax revenue off the projected 3 billion. We want to keep some of that home, and we want the plant grown consciously with respect for the planet.

And I just want to add, it’s particularly important in this industry … I would be saying this anyway because all plants should be grown regeneratively. We’ve seen that industrial agriculture has … What the damage that it’s done to this planet. But particularly this industry because people think that cannabis has to be grown indoors. Cannabis doesn’t have to be grown indoors anymore than tomatoes have to be grown indoors, but because people think that, that’s where their mindset is. And the indoor cannabis cultivation industry is one of the most energy-intense industries in the United States. And therefore, it uses a huge amount of fossil-fueled electricity, but it’s therefore putting out tremendous amounts of greenhouse gases.

So, if New York welcomes this new industrial cannabis industry, it’s going to totally nullify any of its goals for reducing greenhouse gas emissions. So, it’s particularly important in this situation because of what the state’s about to invite into New York.

TG Branfalt: Well, and in your conversations with lawmakers, how have they … Have they been receptive to such a plan, say 50%? Because as we know, the current medical makeup is all corporations. And in other states, these corporations generally get the first crack, these medical operators get the first crack at these licenses. So, how is your proposal been received in Albany?

Andi Novick: Well, it’s true that what they call here “Medical marijuana,” got in first, and it’s true that their model was one of vertical integration, and that gives them all sorts of advantages, but it’s also true that the legislature seems to have recognized that that’s not a good way to go about setting up the industry. So, going forward, they’re going to try to restrict vertical integration. So, what happens with medical is going to happen with medical. You know? They’ve got a lot of money invested in this, and they’re not letting go of their domain.

But what the new law is focusing on is who is going to be producing the so-called “idle use”, the non-medicinal. Although, frankly, the medicinal/non-medicinal is just a fiction. It’s not true. It’s the same plant. But nonetheless, they’re going to be focusing on that aspect. And what we have been saying is you’re regulating this. You’re not even really legalizing it. It’s not like once prohibition ends, everybody can start growing.

TG Branfalt: Correct.

Andi Novick: It’s all being regulated for tax purposes.

TG Branfalt: Correct, thank you.

Andi Novick: So, what we said is, “Hey, you have to limit the number of licenses you give to large canna. We get that you’re dying to suddenly supply all this demand in New York overnight, but limit the licenses so they don’t get too big. And then have the other 50% of licenses go to small farmers and craft growers, and have absolutely no limit on the licenses that you give out to those people because we’re trying to encourage small business opportunities in this new industry that state is giving birth to.”

And since these craft farmers will, by definition, and by virtue of their license only be able to grow a smaller amount, there’s no risk that they’re going to take over and consolidate the wealth. So, we want to have as many people in New York growing regenerative, organic … And I don’t mean organic, necessarily, with the having to pay for what you need to, but just without pesticides, and grown in a conscientious way, the way … Brian knows how to make sure people grow this.

And that’s what we’re asking the state to do. In terms of their reception, the only way it seems that they understand what I’m talking about is if I mention the craft industry, and then people’s light … you know, it’s like you can see a light bulb go off, and they’re like, “Oh, right!”

And so, one of the things I’ve done, I drafted proposed legislation for the new bill. And I’ve called, what’s essentially the equivalent of a craft brewery … We have it in New York, we have craft breweries, we have craft wineries, we have meaderies. What I figured out is if you add E-R-Y to the end of the word, you get a craft business. So I called them cannabiseries.

And I’ve said, “Okay. How about a cannabisery?” Which would essentially be a micro-license, but it would be for a farm. And when I talk about it as a craft industry, they’re more open to it. But you know, the governor’s language is coming out tomorrow. I don’t think we’re in there quite yet, but we have 90 days to get in there.

TG Branfalt: So, as we move towards legalization, as you said, we’re expecting Governor Cuomo to give us information … already exist. But in other states, you know, especially … I mean, California does include energy-efficiency requirements, but most states, they don’t include these regulations on energy consumption, especially the early adopting states. Why do you think that most state cannabis legislation doesn’t include these regulations on energy consumption, knowing very well that it’s a very high-energy industry when you have to do it indoors?

Andi Novick: I think it goes back to … I mean, for the longest time, I haven’t heard anyone who’s pro-cannabis, which we are, talking about the energy problem. And I think that’s because there is this acceptance, as I said earlier, that you have to grow this plant indoors. And so, because they want to see cannabis not being a criminal issue anymore, they don’t talk about it.

But we talk about it because it really is important to the planet and because we have a really fantastic solution, which is let it be grown outdoors in the sun. But we have put in the statutory proposal language. We’ve learned from the experiences in other states. So, for example, in Massachusetts, they put a cap on how much energy use it could be. And I think in Denver, they put a requirement that the energy use be off-set 100% by renewables, all of which isn’t good enough. The best solution is just to use the sun. But we are talking about it.

And of course, legislators do pay attention to that because that’s not something they see a lot, the energy problem. What they’re going to do with it? I don’t know, but it’s in there. It’s in our proposals.

Brian Farmer: Yeah. And it’s interesting, states, especially Colorado, two years ago, Cannabis Conservancy did a report for the Colorado Energy Office assessing the resource use, particularly energy, for the entire industry there, including black market, gray market, and adult-use, medical. And what we discovered was what they had kind of know, but the energy use in Colorado, particularly because they by and large until recently, mandated indoor-growing, the energy footprint just for the City of Denver is massive. It’s a huge percentage given it’s just one industry.

So, now that the metrics are coming out, and Evan Mills just came out with a new study as of a couple of weeks ago. It was a big … For people who follow energy in the cannabis space, he’s been really on doing the research here. He came out with another one looking at the national industry and the energy footprint, and it’s sobering for anybody that’s got all their money invested in indoor production. You know, there’s a lot of environmental reasons why we should be looking at this very seriously.

The other is, as the industry nationally shakes out, the return on investment for some of these big, indoor producers is going to be really screwy. As the prices, in general, come down in the adult markets, that return on investment piece is not going to be there for them based on the huge amount of money they’re putting into energy.

So, there’s a bunch of different ways to look at it, but we want to see some kind of forward-thinking language in the law that pushes people toward outdoor production, but if they are already invested in the indoor production scheme, that they’re doing more than just off-setting. There’s a lot of other things they can do as well. So, that’s where we are with that.

TG Branfalt: So, let me ask you, how much of the responsibility should the industry bear with regard to this energy problem? Should they be more forward-thinking without the need for regulations? Are we seeing companies do that?

Andi Novick: Brian, you know companies who do-

Brian Farmer: Yeah. To some degree, there are indoor producers in a variety of states: Colorado, and Washington, and Oregon, who have proactively used only sustainably produced power. So, they’ve got that. I’ve actually seen small indoor operations in California that are using only green power. They’re actually doing rain catchment, and only using rain water that they catch for their indoor grow. It still looks like an indoor grow, but they’re going about as far as you can to increase the efficiencies and sustainability.

And a lot of those folks are in it because they’ve been growing that way for 20 or 30 years by virtue of being in a situation where they were growing in an illicit manner, so to speak. So, there is all of that energy and knowledge, frankly, that’s invested in that style. And that’s probably going to continue.

So, there are people that are very proactive in that, but as an industry, and you see this all the time, the big money that’s chasing these indoor spaces and that whole paradigm still. And I hope if states can push a real energy efficiency model, that it’s going to push that investment money away from these massive indoor grows to smaller, decentralized kinds of methods. Even if the money that’s invested is coming from these big companies, they’re not going after these massive operations.

So, I think the industry as a whole needs to really step up, but it takes those big players to really do that, and not green wash it as well. So, there’s a lot of pieces that still need to be put in place.

Andi Novick: And in response to the beginning of your question, I absolutely think it’s the responsibility of industry, I just don’t know that certainly big industry is going to care unless the state requires it. But the reason we’re trying …

Maybe it looks different from your perspective because I know you’ve just come into New York recently and because you have a much broader view of what’s happening. But, me-

TG Branfalt: I’m a Bay City worker.

Andi Novick: Okay. Well, me, as a totally New Yorker, I’m looking at this and I’m thinking, “Okay. For 100 years, we’ve been stuck under this industrial agriculture model that has done such damage.” And I know the legislature earnestly talks about, “How can we cajole farmers to change their ways? How can we get them to grow differently?” And they’re looking at carbon tax credits.

And I’m saying, “If you’re going to allow a plant to be grown for the first time in 100 years, the first time since we’ve been under this yoke of industrial agriculture, then don’t repeat the mistakes we already know.” We’re trying to learn from the post-Prohibition states and of Canada, of all the things that have gone down wrong, having waited this long. And these are the things we know. We know that the climate is in an emergency right now. We know what we shouldn’t be doing. And we know we have to change things. So, “As you’re about to authorize this new plant, Governor Cuomo and legislators, what’s necessary is to do it differently and to do it right.”

The people have said to me, “So, why is it so important that cannabis be grown regeneratively as opposed to corn or tomatoes?” And the answer is it’s important that they all be grown regeneratively. The only reason we’re singling out cannabis is because there aren’t any regulations about it right now. It’s all brand new. And so, we’re saying, “Get it right from the start.” And if the state does that, then industry coming in won’t have any choice.

TG Branfalt: So, what are you guys hearing overall from lawmakers regarding the 2020 session and legalization? I know that most of the people that I speak to are not anticipating being able to grow their own, and unsure of what licenses will be available. I know that you’re pushing for these provisions that would give 50% of these licenses to small farmers. But what are you hearing in Albany regarding some of these issues?

Andi Novick: Well, I have to say, people are much more responsive than they were last year. Last year, there was this mad dash to get what was called the MRTA Path, and the reason it was critically important was because it was necessary to end the incarceration of all of the people who have been used in the name of this War on Drugs. And because of that, I think that was the main focus and we couldn’t get anyone to hear anything else.

But this year, it seems like, “Okay. The legislature gets that that’s a necessary thing. We’ve got to stop criminalizing people. So, what else can we think about?”

And we’ve had, so far, really good sessions. And I have to say, in the email exchanges I’ve had with various legislative aids and people I’ve gotten to know over the year and change, who are opening up, they’re all saying, “We really care about the environment. We really care about it’s grown. We really care about how it’s grown. We really want to do this.” Whether or not there’s going to be the will to do it, we’ve got three months to hopefully make that happen.

But there has been more of an embracing, and it could possibly be because we are intentionally meeting with the heads of the agricultural commissions and departments in the … Both … The committees, sorry. The agriculture committees at the assembly, and at the Senate, and people who would care about this stuff. And hopefully those people who care about the environment, care about the planet, will take a more active role in whatever legislation ultimately comes out of the budget this year.

But up until now, no one’s thought about it that way. It was literally just, “Oh, my God, our children are going to start driving stoned, and the police need more money to figure that out.” You know, “How are we going to stop them from driving stoned?” It’s just been a fear-based response.

It’s interesting to be at the cusp of the end of prohibition when you’re around a lot of people who don’t know anything about cannabis and don’t understand it. They’re just responding to the various fear-based misinformation that’s been, I don’t know, indoctrinated over the last century or so.

But again, every year that goes by, more and more people are open to different information. And I certainly had that experience this year, of people who are willing to talk about more than just the fears, and talk about how it could be a real opportunity to revitalize farming communities throughout the country. Well, certainly, but throughout the state.

And then we have other proposals, which would take more time than this podcast to talk about, about how we could really make the seed to sale journey be equitable in terms of who’s growing it, and how it’s being supplied, and where it’s being sold, ultimately. You know, we want to work together, but we need to be given the ground to do that, and that means we need to protect a piece of this ground for small growers and not just let Big Canna come in and take it all.

TG Branfalt: So, I mean, we’re all New Yorkers here. I’ve lived in and out of the state my entire 35 years. And I covered the capital for Reuters and for The Legislative Gazette for several years when I still lived in Albany. And at that time, Colorado was going online. They were voting on it, Washington, Oregon. And I would look at my friends and my colleagues in the press and hear Cuomo, “We will not legalize cannabis. I have no interest in recreational.” And here we are, into his third term, and he’s talking about it in two successive budget addresses, including it.

As New Yorkers, A, did you think it would be under a Cuomo Administration that this happened, and B, what is your reaction to being on the cusp of legalization in this state?

Andi Novick: Brian, you want to try it or do you want me to?

Brian Farmer: Sure. Well, what I’ve learned in some of these meetings is that Cuomo, for those who are not familiar with the political atmosphere, he’s very concerned about not looking bad. He sees where the winds are blowing. He sees the states around New York legalizing and he doesn’t want to miss that opportunity. So, he flipped pretty quickly based on all of those factors. You know, he’s a political animal, for sure. So, that really … I think, that’s my opinion, was the driving factor behind all of this.

And we have a $6 billion budget deficit, so people look at cannabis as somehow this massive pile of money that they’re going to be able to extract tax revenue from. Yes, if it’s done right, that could exist, and I think that’s another piece for Cuomo. So, it’s kind of multi-faceted.

But it’s a bit surprising to me that it’s happening right now, but a lot of things I’ve learned in the past four years being involved with all this, is surprising in terms of how rapidly things are changing. The snowball is getting bigger all the time. So, we’ll see.

But in these meetings, we really heard about how it works, which I always kind of assumed in New York, but the governor’s office has a huge amount of power to craft how these things end up being put into law. Andi, you want to take it from there?

Andi Novick: Well, I think it’s a lot of legislators are afraid of voting in favor of ending prohibition because they’re afraid of what their constituents might think about it. So, a lot of people think it has a much better chance of passing in the governor’s bill where it sort of gets subsumed and they don’t have to get identified that way.

And given … I wasn’t involved until last year. For three years before that, both Crystal Peoples-Stokes and Liz Krueger were fighting really hard to do this. And when I came into it a year ago … Well, two years ago in the fall of … Two falls ago, I was new to what was going on and I was talking about it from a totally different perspective and it was frustrating because nobody could hear it. But in the short year, as I said, people are hearing it and now the conversations I’m having are about how it’s grown and how it’s going to impact the health and the environment.

And so, I’m not surprised in that that’s what education does if you can avoid the polarization that exists around other things, and people can listen to you. And people have been listening. And so, of course, it makes sense that, like other things in this country, once it gets into a different generation or a different people speaking about it, it does change.

And so, I guess I’m not surprised. I, at this point, would be surprised if it didn’t pass, but I really want to see it pass with respect to the planet and respect to the plant. I think that’s critical. I think if we don’t get in in the first few shots of this, that we’re not going to make it because once … The experience of other states is, once Big Canna comes in and does its thing, it’s very hard to change the way. Just like we have to change the ways farmers grow from industrial to regenerative, that’s why we really want to get it right from the start.

So, to the extent you have a New York audience, we really need people to check out our website and help us because we are a very small group for a very big state doing something that’s extremely important for the planet, and we need everybody else to get behind it.

TG Branfalt: Do you think that the energy proposal, are they being a little more accepted by, I guess, sort of the … Maybe the Republicans who might not be on board that are, say, from the districts that I live in? I know that Elise Stefanik, my representative, unfortunately, she wouldn’t vote for it. But do you think that these energy proposals that are included, or these licenses for smaller farms … Do you think that those would help sway the up-state Republicans who might oppose this, or do you think it’s cannabis, it doesn’t matter what we try to do to help that economy?

Andi Novick: Well, that’s precisely what we’re trying to do this year, which is to talk to people at a place where they can hear us. So, whether it’s talking to people who care about the environment, or people who care about agriculture, or people who care about their rural communities, or wherever it is, we’re trying to bring that information so that it’s not just, “Oh, cannabis? I don’t want to talk about cannabis. Cannabis is bad. I can’t talk to you.”

We’re trying to come in a different way because the issues you’ve raised about the electrical consumption, or the licensing, if people are opposed to cannabis you never get to those issues. Even with people who are into it, those are down the road that you get into those issues as much as we try to bring it to the forefront. But with Republicans, who we’ve largely stayed away from, but again, there’s just a few of us, and we’re trying to talk to some of them, and if there was more of us, we’d talk to all of them.

But talking about those issues that I mentioned already, the environment, the agriculture. But also this other issue, which, for reasons I don’t understand, falls on deaf ears, which is everyone is fighting over these $300 million in taxes. And I’m talking about, “Well, what about the billions coming in? Don’t you want to get those billions going into your community?” And I’m hoping people that care about their communities that need a shot in the arm will look at the potential for this $3 billion coming in annually, and try to take it for their communities by way of small businesses. But that one, I haven’t gotten a lot of traction on so far.

Brian Farmer: Yeah. Actually, we are going to be doing some events in Southern Tier, western New York, and hopefully that’ll attract some folks. But there’s a couple things. One is that the hemp industry and the way it’s grown in New York has been a real big foot in the door in opening up people’s minds around how this can fuel the farm economy, not just big, consolidated producers who are in the medical program. This could really open it up in communities that are already oriented towards agriculture. But there’s education and other kinds of things that need to happen there, and we’ve had conversations around how that can be a driver for some of these rural communities.

One idea is to set up, with some state support, hubs in various places in the state that can be centers for education and innovation in those communities that support a new cannabis-based agricultural industry. So, there’s a lot of ways that the state could work with communities to really get this launched in a very “organic” way on the ground and away from that consolidated kind of approach.

There are companies that are already in New York, who I won’t mention, but they’re large, multi-national cannabis businesses who are pushing a certain kind of agenda and model, and I think our platform is more oriented towards decentralization and empowering more growers and business related to those growers in rural communities.

So, there’s a lot of opportunity, but it really is a big paradigm shift for a lot of conservative politicians. There’s not a lot of vision there, so as you lay this out, it’s like, “Oh, yeah. Maybe that could happen.” But it’s a lack of vision in a lot of ways.

Andi Novick: Right. I’m glad Brian mentioned what we call the resource hubs, because that’s something … That’s like the last thing we get to talk about typically when we’re meeting with legislators. But that’s going to be necessary for the state to invest some money because what you’re looking at is these large, well-financed canna industries, and then small growers who have been growing vegetables and tomatoes, or nothing, and want to get into this industry, there’s just no way they’re going to be able to compete with such well-financed machines that have this model that they keep rolling in state after state. So, unless the state is willing … New York State is willing to level the playing field, it’s not going to succeed.

But were the state to do that, to do these resource hubs, it would be such a huge benefit. It’s so short-sighted to not look at it because the state will only benefit from this. The state will be providing jobs, good jobs, and will be learning as we go, and will be enabling all sorts of people to come into this industry, and will be able to receive a lot of the financial benefit that it’s so desperate for. It’s such a win/win, but it’s hard to get the state to-

TG Branfalt: Could you elaborate a little bit on what these resource hubs look like?

Andi Novick: Well, what we’ve said is that … And this has been true of farmers for a long time, is that, individual farmers, small farmers, do best when there’s some kind of cooperative structure that assists them, whether it’s in providing the seeds, or providing the know-how, or having an opportunity for collaboration, and learning from each other, or having a built-in way to sell. You know, you can sell to the co-op, and then the co-op, as we’ve envisioned it, this farmer co-op should be vertically integrated so it can do all of the things for all of its many members, whether it’s processing it into some oil, or into whatever. Whether it’s selling it.

And individual farmers can choose to participate in various levels, but it creates that structure that people who are first coming into the industry and don’t necessarily know how to do a lot of this branding, packaging, the regulations, which is a very high bar, it supports them in being able to do it. So, if we want to support small farmers, we have to create that structure.

And allowing it to just be self-created co-ops probably, over time, would work but not with this pressure of Big Canna coming in and taking it all over. So, to level that playing field, we’ve asked the state to support at least five resource hubs, which are essentially farmer co-ops, that would be strategically located throughout the state. And those would be these learning centers that Brian talked about. They could be for genetic researching. We don’t have the right seeds, necessarily, for growing in the North East, and we have to develop those, what works with our climate. There’s so much we’re learning to know.

With hemp, I know Cornell has taken the lead on some of that … but no one is taking the lead on it with cannabis. They’re both cannabis, excuse me. But with the cannabis that has a little bit more THC in it. But we could do it. We have enough farmers, and we have enough know-how, and we have organizations, but we need the state to support this some or we can’t compete with the money that’s going to be coming in.

TG Branfalt: I mean, what’s interesting to me is what you just sort of described is a by-product of what was enacted several years ago, the “I Love New York” program. And I just think about how amazing it would be to show up to an I Love New York sponsored craft cannabis event? Right? It would-

Andi Novick: Absolutely.

Brian Farmer: Yeah.

TG Branfalt: It would be wild! I’d also love to smoke a joint with Cuomo, but that’s one of those sort of pie in the sky things. So, tell me, guys, what advice would you have for New York entrepreneurs who are considering to get into this space that we’re right on the cusp of?

Andi Novick: Well, I know, Brian, you could take a crack at it. What I would say is-

Brian Farmer: Okay. Go ahead.

Andi Novick: … I’m not interested in what large entrepreneurs are doing, but I am interested in what small entrepreneurs could do. And what I think they should do is be joining with us to try to get this legislation first because without the legislations, there won’t be opportunity for small entrepreneurs.

And then, after the legislation, there’s first going to be a year or two during which we fight over regulations which really impacts what the industry is going to look like. So, if you want to be part of the industry, you need to be making sure that industry exists right now. Brian, do you have a different take?

Brian Farmer: Well, I mean, the one that I … Just because I’ve spent time in a bunch of other states, particularly in California. For those people that are true entrepreneurs, want to come into the New York industry and support small growers, is to do something that has been happening in California, and it’s actually creating these alliances, or co-ops. In California, they’re called alliances. That are essentially grower co-ops.

The investor comes in and has kind of 50% ownership of a common brand that all of the growers can market through, and then the growers own half of the equity in the venture, so that they’re all sharing in the profits, but the folks who actually have the bigger money can come in and help set up things like processing. Kind of like what a state-supported hub would look like, maybe on a smaller scale, with 30-50 small growers, so that they’re able to create a brand and do it that way.

What might happen, and I haven’t seen a lot of public movement on this, but I have heard some stuff in backroom conversations that some of the multi-state brands that are touting their support of small farms, organic production, and things like that, those producers … And I won’t name them because I’ll get into trouble, but people can do their own research. Some of those folks are looking very hard at New York, and once the legislation is passed, looking at being able to come in and start offering growers opportunities to develop these co-ops or alliances.

And I see that as a way to be able to launch and support the craft growing techniques, but not leave the responsible and the onus solely on each one of those individual growers, because that’s going to be a stretch for a lot of folks getting into it.

So, there’s a number of ways that that can happen, but it’s got to be folks who are coming in really supporting the notion that we need to grow it in a certain way and support an industry that’s very broad-based. And I think those entrepreneurs are out there. I think that’s the type of entrepreneur I would like to see coming to look at New York.

Andi Novick: Yep. You’re absolutely right. That would be the alternative to the state-supported. But someone has got to support the small growing movement because it’s just too much money on the other side.

TG Branfalt: No, and again, as people who listen to this show know I live in a very, very rural part of the state, which is heavy on farming. And not only are we facing a crisis of the climate crisis that’s associated, but the lack of second, third-generation farmers keeping these farms going. And this might also provide and opportunity for the next generation to say, “Hey, we have this land. Hey, I like cannabis.” And maintain that family farm. In a perfect world, you know?

Andi Novick: Right.

Brian Farmer: Yeah. No, I think that’s my vision. And it has … Like, the craft brewery, the on-farm brewery model that’s really been super successful in New York and has really supported a lot of struggling small farms that got into this, and it’s been a real boom for them. I mean, it’s kept some of these older family farms going when they wouldn’t have otherwise.

TG Branfalt: Well, in my tiny little mountain town, we have one business and it’s a brewery.

Brian Farmer: Whoo-hoo!

TG Branfalt: So, I would love for our next business to be a dispensary. That would be fantastic.

Andi Novick: Or to be a cannabisery!

Brian Farmer: Cannabisery.

TG Branfalt: Okay, that would also be fantastic. If they sold cannabis within walking distance from my house, I-

Andi Novick: And you would know your farmer because she’d be growing it and selling it off the farm. You know, when you’re a farmer … You know how important that is, right?

TG Branfalt: Yeah, yeah. So, where can people find out more about you? More about your organization?

Andi Novick: Well, newyorksmallfarma.org is the website, and there’s a lot on there about … We have a platform that’s only two pages, so you can read it. We have a platform that we’ve inserted statutory proposed language, and we have lots of documents because I’m a lawyer. I write a lot, you know?

But there’s a lot on there, and we will be adding to it, and it would be great if people signed up for our email because, at least weekly, we send out an email, especially right now while everything is moving very fast. And again, I just can’t say it enough that people need to get involved in this, because otherwise, it’s going to pass and the option you’re going to have is like they’re having in Canada now, crappy, expensive, fast-grown stuff, or you’ll continue to buy illegally, I guess, but you won’t have the option unless we fight for it now.

TG Branfalt: So, I want to thank you guys so much for coming on the show. Andi, I really hope that you’ll be a guest again and we can sort of talk about how lawyers are preparing and other issues that we couldn’t get to. Thank you, guys, so much for being on the show.

Andi Novick: All right. Thank you for doing this. Appreciate it.

Brian Farmer: Thanks, Tim.

TG Branfalt: That was Brian Farmer and Andi Novick. They’re board members for the New York Small Farma, F-A-R-M-A. It’s an industry community working to ensure social and environmental justice for cannabis growers and supporters in New York State. Before I sign off, I just want to note quickly, I am aware that Elise Stefanik is not a state representative. I just wanted to sort of illuminate the type of representatives that we have in the north country.

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

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Biden Includes Cannabis and Criminal Justice Reforms in “Plan for Black America”

5/06/2020

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Former Vice President Joe Biden, the presumptive Democratic candidate for president of the United States, on Monday announced a “Plan for Black America,” which includes cannabis decriminalization, expungement of convictions related to cannabis use, and ending “all incarceration for drug use alone,” opting instead for drug courts and treatment.

The criminal justice reform plan would also end cash bail and implement pretrial system reforms. The plan suggests that the Biden Administration would replace cash bail and the pretrial scheme with a “system that is fair and does not inject further discrimination or bias into the process.”

Additionally, the plan calls to end the federal crack and powder cocaine sentencing disparities and work to eliminate both mandatory minimum sentencing and the federal death penalty. In an effort to get rid of mandatory minimums, Biden would create a $20 billion grant program to support criminal justice reform at the state and local level. Those funds could be used by cities and states “on measures proved to reduce crime and incarceration” but only by states that eliminate mandatory minimum sentences for non-violent crimes.

The plan also calls for an independent task for on prosecutorial discretion – placed outside of the Department of Justice – that “would make recommendations for tackling discrimination and other problems in our justice system that results from arrest and charging decisions.”

The reforms also seek to end the use of private prisons – a policy championed by the Obama Administration that was rescinded by the Trump Administration in 2017.

During a campaign stop in Las Vegas, Nevada last year, Biden said he did not support cannabis legalization due to lack of evidence “whether or not it is a gateway drug” but did say he supported federal cannabis decriminalization and medical cannabis legalization. In February, Biden walked back the “gateway drug” comments and doubled down on his support for federal cannabis reforms. In the comments, recorded by the Marijuana Policy Project’s Don Murphy during a Biden campaign stop in New Hampshire, the former senator conceded that, in the U.S., cannabis is  “at the point where it has to be, basically, legalized” but that he was “not prepared to do it” while “serious medical people” still have concerns over its effects.

Biden is the likely Democratic nominee after all of the other candidates either dropped out of the race or suspended their campaigns. Vermont Sen. Bernie Sanders (I/D) still appears on some state nomination ballots despite suspending his campaign in April.

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California Unveils State-Certified Organic Cannabis Plan

5/06/2020

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Regulators in the California Department of Food and Agriculture have unveiled their OCal program, which will label organically grown cannabis products in a market scorned by federal regulators.

The proposal, which was released last week, would “ensure that cannabis products bearing the OCal seal have been certified to consistent, uniform standards comparable to the National Organic Program,” according to a CDFA statement. California regulators also announced they would be accepting public comment on the proposal until July 7.

Notably, certified products will be allowed to display the OCal seal but still cannot be labeled as “organic.” The “certified organic” label found commonly in grocery stores is regulated by the USDA, which — because it is a federal agency that must obey federal laws — automatically prevents cannabis products from qualifying for the official organic certification.

CDFA heard from some 250 cannabis industry stakeholders while crafting rules for the certification program, Cannabis Wire reports.

“Our hope is that the proposed program will be cost effective enough that the cannabis industry can fully participate,” said Sarah Armstrong, policy chair for the Southern California Coalition.

“Right now, testing expenses represent 10% of the cost of product production, resulting in an exceptionally pure product at no small expense. Hopefully the Organics Program can work with cultivators to develop methods which ensure the program safeguards purity in a cost effective manner.” — Armstrong, via the Cannabis Wire

If approved, OCal would be the first organic-comparable state certification program for cannabis products and could set the standard for similar programs in other states.

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Medical Cannabis Sales Set New Record in Oklahoma During Stay-at-Home Order

5/06/2020

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Oklahoma medical cannabis sales set a new record last month, topping $61.4 million, despite the national coronavirus pandemic, the Oklahoman reports. The total represents nearly $217 spent per licensed patient.

According to Oklahoma Tax Commission data outlined in the report, dispensaries remitted almost $9.8 million in state taxes last month, which includes traditional sales taxes and the 7 percent medical cannabis levy. In March, the state collected $7.8 million in cannabis taxes – the previous record.

The Tax Commission figures don’t include sales volume, so the higher tax collections could be influenced by higher retail prices, the report says. Bud Scott, executive director of the Oklahoma Cannabis Industry Association, told the Oklahoman that many dispensaries offered deals in April to boost sales amid the state’s stay-at-home order which expires today.

“With the stay-home order in place, and medical marijuana dispensaries being categorized as essential health services, Oklahoma patients were afforded the ability to take their medicine on a more regular basis and sample a broader range of available medicines.” – Scott to the Oklahoman

According to the report, medical cannabis tax collections in Oklahoma are already more than half of last year’s totals.

Earlier this month, Republican State Rep. Scott Fetgatter said he was considering introducing a broad cannabis legalization bill to help the state fill its budget shortfall – $220 million this year and $250 million next year. Fetgatter estimates that recreational cannabis sales could bring the state $100 million annually in tax revenues.

Illinois also reported strong sales during the state’s stay-at-home order, recording its second-highest total since legal sales began in the state in January.

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Maryland Dispensary Owner Files Lawsuit Over Out-of-State Patient Policies

5/06/2020

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The owner of a medical cannabis dispensary has filed a lawsuit against the Maryland Medical Cannabis Commission over their denial to allow registered out-of-state residents to obtain a Maryland medical cannabis card, the Cumberland Times-News reports. Under current state law, out-of-state patients do not have access to medical cannabis in Maryland.

The lawsuit, a writ of mandamus filed by Allegany Medical Marijuana Dispensary owner George Merling, requests that “government officials properly fulfill their official duties or correct an abuse of discretion.”

While the state has accepted some applications for out-of-state patients, those applications were put on hold shortly after the launch of Maryland’s medical cannabis program in 2017, the report says. The lawsuit argues that it is a right of a U.S. citizen from one state to receive medical care while in another state. Moreover, Merling claims his defense is based on the 14th Amendment of the U.S. Constitution, which states, “No state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States …”.

In the state medical cannabis law with regard to out-of-state patients, Maryland dispensaries must be approved by the Illinois-based Joint Commission of Accreditation of Health Care Organizations to offer care; however, due to federal law the commission will not approve any medical cannabis dispensary. Merling said the clause was included in the law because “no one could [get the accreditation].”

In 2018, the commission sent a letter to cannabis regulators in Maryland requesting that they remove the provision.

Last year, a similar writ of mandamus was filed in New Mexico and upheld. That decision forced officials to accept out-of-state patients, although state health officials refused to adhere to the decision and withheld medical cannabis ID cards from non-residents until lawmakers officially closed the ‘loophole.’

The case is scheduled to be heard May 27 unless a settlement is reached sooner.

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USDA Releases Guidelines for Federal Hemp Business Loans

5/05/2020

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The U.S. Department of Agriculture has released guidelines for hemp companies to apply for and receive federal loans, Marijuana Moment reports.

The guidelines, which were detailed in a memo issued last month, are part of the USDA‘s aim to align the federal hemp industry with other agricultural commodities — one piece of that effort is establishing the framework for hemp farmers to acquire federal loans.

“While it’s understood that this new commodity will likely produce some servicing challenges because of State and Federal regulations, it should be treated as closely as possible to any other agricultural commodity and serviced in the same manner.” — USDA memo excerpt

The memo lists the requirements that a hemp business must meet in order to qualify for a federal loan, which includes being licensed under a USDA-approved state or tribal hemp program and strict guidelines for reporting to the agency about any potential issues that arise with one’s hemp crop.

“Hemp will be considered like any other borrower produced commodity, if the hemp was produced under a license authorized by the 2014 or 2018 farm bills, and provided the crop is not abandoned or destroyed,” according to the memo.

USDA also clarified that federal loans cannot be used to pay for the disposal of hemp crops that test higher than the federal 0.3% THC cap.

The agency noted that, while access to a bank account is yet another requirement to receive a loan, not all banks are fully willing to cooperate with the hemp industry yet despite its federal legalization.

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Illinois Has Second-Highest Cannabis Sales Month Despite Pandemic

5/05/2020

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Amid the coronavirus pandemic, Illinois has recorded its second highest cannabis sales total since legal sales began in the state in January, according to Department of Financial and Professional Regulation figures outlined by the Chicago Sun-Times. April’s $37.3 million in adult-use sales trails only the $39.2 million worth sold in the state during January.

In Illinois, both adult-use and medical cannabis sales are considered “essential” businesses under the state’s stay-at-home order. The rules require shoppers to stand six feet apart in stores and in lines, and allow for curbside pickup for medical cannabis patients and their caregivers.

Toi Hutchinson, the governor’s senior adviser for cannabis control, said customer safety during the pandemic is the administration’s “top priority” for the industry.

“The steps we’ve taken to increase social distancing at dispensaries are accomplishing that, while also enabling this new industry to continue to grow.” – Hutchinson to the Sun-Times

Gov. J.B. Pritzker signed an executive order April 30 relaxing licensing requirements for industry employees, no longer requiring them to wait for the Department of Financial and Professional Regulation to issue them an identification card to start work, according to a Law360 report. The move comes as some cannabusinesses in the state are facing a staffing shortage due to sick or at-risk workers.

The order also temporarily ends the requirement that dispensary employees must have a current ID card and have it visible at all times while working, as long as they have submitted an application to the department.

According to regulators, Illinois residents purchased $29.7 million of the adult-use cannabis sold in the state in April, the rest was bought by out-of-state residents. In all, about 819,000 sales were counted over the course of the month.

Since January, recreational cannabis sales have topped $147 million in Illinois.

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Panda Biotech Donating 60 Tons of Hemp Seed to Texas Farmers

5/05/2020

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Panda Biotech is donating 60 tons of approved hemp fiber seed to Texas farmers hoping they will provide basic data about the crops. Although farmers are not required to provide data to receive the seed, all producers providing data will receive a free report generated from the promotion.

The promotion is developed in coordination with the Texas Industrial Hemp Council to help farmers experiment with, and gain experience from, their first trial hemp crops. Scott Evans, executive vice president of Panda Biotech, said the firm is giving away the seed because the company is “confident in American-grown hemp fiber’s potential to revolutionize several industries.”

“We are literally seeding Texas’ industrial hemp industry. … We’re making this donation to help ignite a new industry where Texas has the potential to be a global leader, and having access to real-world data is a necessary first step for that to occur.” – Evans in a statement

Panda will provide the data from farmers to Texas A&M AgriLife which will conduct the research and publish the report to share with participants.

Eloise Frischkorn, chairperson of the Texas Industrial Hemp Council, said the organization expects Texas to become “the nation’s leader in hemp production,” adding that “there is much yet to learn about how hemp will respond to Texas soil.”

“Panda is being farsighted in partnering with our farmers to help get our Texas hemp industry kickstarted,” she said in a press release. “Their generosity will put the state’s agricultural producers in a great position for the 2021 season.”

The distribution of the free seed began yesterday in Lubbock. Growers can test with as little seed as they want or up to 25-acres worth of seed, which is available on a first-come, first-served basis. Producers may use the resulting industrial hemp crop for any purpose they choose except for seed reproduction for 2021.

Panda announced plans last year to build the largest industrial hemp processing facility in the U.S. – the Panda High Plains Hemp Gin – in Shallowater which they expect to process 130,000 tons of industrial hemp annually of fiber, and cellulose. The company estimates that the two lines could generate $30 million per year for the state’s agricultural producers.

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Columbus to Refuse Cannabis Prosecutions Despite Labs’ New Testing Capabilities

5/05/2020

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Columbus, Ohio City Attorney Zach Klein will continue to decline to prosecute low-level cannabis cases despite the state’s crime laboratories upgrading to have the capability to differentiate between legal hemp and illegal cannabis, the Columbus Dispatch reports.

Klein had joined some law enforcement officials and prosecutors throughout the U.S. who said they would not prosecute low-level cases following federal and state hemp legalization because their state did not have the infrastructure to conduct tests to determine THC levels. Klein said that the testing issue was one of many factors that led to his decision to decline to prosecute low-level cannabis crimes.

“Our decision to stop prosecuting low-level, misdemeanor marijuana possession was based on 1many factors, including the lack of testing capabilities at the time, our city council’s decision to institute a low-dollar fine for violations, and overall disparities and inequities in the criminal justice system. If anything, in light of the spread of the coronavirus in our jail and prison system, we believe our policy reflects a real-world approach that focuses on incarceration for only those that should be behind bars.”– Klein in a statement via Cleveland.com

Ohio Attorney General Dave Yost announced last week that the Ohio Bureau of Criminal Investigation upgraded its Richfield, London, and Bowling Green labs to measure quantities of THC, rather just the presence of the cannabinoid.

Louis Tobin, executive director of the Ohio Prosecuting Attorneys Association, said in a statement that prior to the upgrades, the only solution for law enforcement to test cannabis was “expensive private testing.”

Since the hemp reforms, Yost’s office provided law enforcement agencies $3,972 in grant funding to test samples in eight cases tied to over 20 felony charges. The state also provided $968,602 for drug testing equipment and, in all, $700,000 has been spent on the instruments necessary to conduct quantitative analysis.

Portage County Prosecutor Victor Vigluicci told the Dispatch that he could “probably count on one hand” the number of defense attorneys who attempted to use a hemp defense in a cannabis case in the state.

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Constellation Brands Ups Stake in Canopy Growth

5/04/2020

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Constellation Brands Inc. has increased its stake in Canopy Growth Corp. by 5.1 percent, bringing its total stake in the Canadian cannabis producer to 38.6 percent. The company said it exercised C$245 million (USD$174.29 million) worth of warrants.

In addition to those shares, Constellation also has warrants and senior notes which, if exercised and converted, would bring its ownership stake in Canopy to 55.8 percent. Constellation said the company now holds over 142 million Canopy shares as well as almost 140 million warrants to purchase shares and senior notes worth C$200 million (USD$142.28).

Bill Newlands, Constellation president and CEO, described Canopy as the “best positioned to win in the emerging cannabis space” and the company is “confident in the strategic direction” of Canopy under CEO David Klein and his team.

“While global legalization of cannabis is still in its infancy, we continue to believe the long-term opportunity in this evolving market is substantial.” – Newlands in a statement

Klein is a former executive vice president and chief financial officer for Constellation who took over the reins of Canopy last December from Mark Zekulin, who took over as sole CEO following the ouster of company founder Bruce Linton.

Recently, however, Canopy has announced sweeping changes to its business. In March, the company shuttered two greenhouses in Delta and Aldergrove, British Columbia, Canada, cutting 500 jobs in the process.

The following month, the company said it would sell its operations in South Africa and Lesotho, close its indoor cultivation facility in Yorkton, Saskatchewan, shut down its hemp farming operations in Springfield, New York, and close its Colombia-based cultivation facility.

The firm laid off another 200 employees last month in the U.S., Canada, and the United Kingdom.

The warrants that were exercised were due to expire on May 1 if no investment was made. Constellation also has further warrants which expire in November 2023.

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Hightimes Holding Acquires 13 California Dispensaries from Harvest

5/04/2020

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Hightimes Holding Corp. is continuing its push into the retail sector, announcing last week that the company had reached an agreement to acquire 13 planned and operational California dispensaries from Harvest Health & Recreation Inc. The terms of the mostly-stock deal were not disclosed.

Adam Levin, Hightimes Holding executive chairman, said the company has “enormous respect for the Harvest brand” and the firm is looking forward to “ushering in the next generation of retail experience with Harvest as a significant shareholder” in the company.

“We’ve long supported Harvest and the other cannabis-retail-trailblazers as they pushed forward despite changing legislation, insurmountable licensing fees, political stigma and, frankly, through a process that was designed to be difficult.” – Levin in a statement

Harvest is headquartered in Tempe, Arizona. In addition to California and Arizona, the company operates in Pennsylvania, Arkansas, Florida, Maryland, and North Dakota.

In March, Hightimes Holding signed a letter of intent to acquire California-based Humboldt Heritage Inc. and its subsidiaries Humboldt Sun Growers Guild and Grateful Eight LLC. The move to retail follows a January announcement that the firm had signed a deal with dispensary licensees in Los Angeles and Las Vegas with plans to open two flagship retail locations.

The shift to retail comes after the company said in a Securities and Exchange Commission filing late last year that there was ‘substantial doubt’ in the company’s future. In January, incoming CEO Stormy Simon said the company would move to the retail side of the industry.

The company had acquired many of its competitors over the years – including magazines DOPE and Culture, and website Green Rush Daily. Earlier this month, Hightimes Holding announced it temporarily suspended publication of DOPE and Culture and furloughed the magazine’s employees amid the coronavirus pandemic which shut down most in-store dispensary shopping. The magazines are primarily print publications that are distributed to dispensaries monthly.

In February, Hightimes Holding received a trading symbol from the Financial Industry Regulatory Authority which advances the company’s plans of going public by next year.

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MJ Unpacked to Debut 3D Virtual Summit Series On May 12

5/04/2020

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Cannabis business event and media firm Jage Media is set to debut an exclusive 3D Virtual Summit series this month starting May 12 with a three-day, Colorado-focused event. The MJ Unpacked event series — which promises actionable information tailored to help licensed cannabis brands and retailers find success — is the perfect post-COVID-19 solution to cannabis trade shows.

Attendees of MJ Unpacked Colorado will experience a unique online event complete with peer-to-peer networking, expert Q&As, round tables, and digital exhibition platforms where attendees and exhibitors can meet, learn, and network as if they were at an in-person trade show. Additionally, all attendees will be individually vetted by organizers to make sure everyone attending is equally invested in a successful event.

“We are excited we can convene the industry through a thoughtfully tailored and curated digital event series,” Jage Media CEO George Jage said in a statement. “Cannabis, like all industries, is responding to new realities in the wake of the Covid-19 pandemic. As we adapt, the ability for retailers and brands to convene and address the market landscape, state by state, is more important than ever.”

On the event’s first day, MJ Unpacked will feature its partner BDSA (formerly BDS Analytics) showcasing insights and never-before-shared information about the Colorado marketplace from the company’s market-leading industry intelligence. The presentation will be held in a digital auditorium and, according to BDSA CEO Roy Bingham, will offer “a deeper dive into the cannabis market than at any other event in the company’s history.”

The next day will feature a panel of successful executives focusing on the many challenges and opportunities of cannabis retail. Other event highlights include sessions focusing on customer acquisition, case studies from the industry, managing staff during a crisis, and more, all featuring notable panelists such as Bruce Linton, founder and former CEO of Canopy Growth Corp, and Tripp Keber, co-founder and former CEO of Dixie Brands, Inc.

The three-day event kicks off at 9:30 am each day with the opening of the Virtual Summit & Exhibit Halls. Each day features a diverse series of group discussions, workgroups, and Q&As — see the full schedule for more details.

“Attendees to the first MJ Unpacked event should expect an engaging and experiential scene filled with exceptional programming, in-event networking, topic-driven roundtables, a social networking lounge, and even in-event games,” said Kim Jage, Chief Marketing Officer for Jage Media.

“With this new format, we can also invite brand and retail executives from outside the state of Colorado to this inaugural 3D Virtual Summit, giving them a great opportunity to build their network, and engage with leading Colorado executives,” Jage said.

MJ Unpacked Colorado is the first of multiple planned 3D Virtual Summits — Jage Media has also announced a digital summit for the California marketplace on July 23-35, followed by events for Oregon and a combined Southwest event.

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Dr. Bronner’s Donates $1M to Oregon Medical Psilocybin Campaign

5/04/2020

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Dr. Bronner’s has donated $1 million to the campaign to legalize psilocybin therapy in Oregon. The cash infusion, first reported by Double Blind Magazine, was announced last week by David Bronner, CEO of the Dr. Bronners brand, during a Reddit AMA (Ask Me Anything).

Oregon’s Initiative Petition 34 aims to legalize the therapeutic use of psilocybin, which is touted by many activists as the next step in progressive drug policy reform. Psilocybin is in the final stages of studies for FDA approval as therapy for treatment-resistant depression.

“My family’s no stranger to severe depression and anxiety. Pharma drugs and traditional therapies are often inadequate, and psilocybin therapy has shown remarkable promise in clinical trials at John Hopkins, NYU, and other universities, for depression and end-of-life anxiety. FDA has recently designated the therapy “breakthrough” status, and we want to see this therapy available for those who most need it. But also for all adults struggling with the dilemmas of life, this therapy is incredibly helpful.” — David Bronner, CEO of Dr. Bronner’s

The initiative currently has just over 130,000 signatures but will require 145,000 before it can be approved for November’s ballot. If approved, IP34 would establish a state framework for medical access to psilocybin, which is a Schedule I drug under federal law.

Specifically, the proposal would create a patient screening process as well as centers for distribution and administration which would all be overseen by the Oregon Health Authority. The state would create research-based programs to handle everything from spore to patient, including cultivating the mushrooms, overseeing the training for facilitators, and administration of the medicines.

When asked why he was supporting the medical initiative as opposed to a decriminalization-focused campaign, Bronner said that the measure wouldn’t rely on “exorbitant taxes beyond what’s needed to cover the program,” so it should be “relatively affordable versus otherwise.”

“Definitely programs sponsoring the most indigent and marginalized and traumatized communities should be developed and we’re actively looking at this with other donors,” Bronner said.

Editor’s note: A previous version of this article incorrectly listed the Yes On IP34 campaign as a part of the Decriminalize Nature advocacy group.

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