Competing Legalization Campaigns Active in Arkansas

2/06/2020

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Arkansas canna-activists are circulating petitions for competing adult-use cannabis legalization proposals for the 2020 General Election ballot, 5 News reports. Both groups need to collect 89,151 valid signatures by July 3 to put the issue to voters and both claim to have already surpassed 10,000 signatures.

The measure backed by Arkansas for Cannabis Reform – the organization behind the state’s successful medical cannabis legalization bid in 2016 – would allow adults 21-and older to possess up to 4 ounces of flower, 2 ounces of concentrates or edibles (capped at 200 milligrams) and would allow individuals to cultivate six mature and six immature plants on their property. The proposal would require one retail dispensary per county – that doesn’t opt out – 30 per Congressional district, and one cultivation company per 250,000 residents. The proposal, a constitutional amendment, leaves rule and licensing promulgation to the Alcohol Beverage Control Division of the Arkansas Department of Finance and Administration.

Although the amendment does not include a tax rate, it does direct 60 percent of the cannabis-derived revenues to pre-k and afterschool programs, and whatever remains, after funding the program, to the University of Arkansas for Medical Sciences.

The amendment by Arkansas True Grass does not include any of the cultivator or retailer restrictions included in the competing proposal, sets fees for those licenses at $500, and allows individuals to grow 12 plants and an unlimited number of seedlings. Their measure caps daily flower purchases at 4 ounces for Arkansans and 1 ounce of flower and 72 ounces of edibles for non-residents.

The True Grass proposal would automatically expunge low-level cannabis crimes, while the Arkansas for Cannabis Reform plan would support other, third-party expungement campaigns.

Laree Treece, a volunteer with Arkansas for Cannabis Reform said the recreational legalization campaign would be “an uphill battle” and that having a competing petition circulating in the state is “confusing people.”

In 2016, Arkansas voters approved the medical cannabis amendment 53 percent to 47 percent. Last year the state’s 14 medical dispensaries sold 4,200 pounds of cannabis worth $28.13 million.

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Missouri Group Launches Cannabis Legalization Bid

2/06/2020

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Missouri activists are circulating petitions to put adult-use cannabis legalization on November ballots, the St. Joseph News-Press reports. Missourians for a New Approach, the organization behind the legalization campaign, also headed the successful 2018 bid to legalize medical cannabis in the state. Activists need to gather 17,000 valid signatures from registered voters distributed across six of the eight Congressional districts by May 3.

The measure would legalize cannabis for adults 21-and-older and impose a 15 percent sales tax, which would be used for infrastructure, veterans, and combating drug use. The proposal includes expungement and local opt-out provisions. Potential taxes derived from cannabis sales in Missouri are estimated at between $93 million and $155 million annually, while the program would cost the state about $21 million initially and $6 million per year after that.

John Payne, the campaign manager for Missourians for a New Approach, told the News-Press that the organization is “basically getting petitions in people’s hands right now,” using both paid and volunteer signature gatherers. According to a St. Louis Post-Dispatch report, New Approval PAC, based in Washington state, has donated $150,000 toward the signature-gathering effort.

According to the January 31 Post-Dispatch report, the campaign had raised $80,000 in contributions, including $25,000 from BeLeaf Medical, which holds three medical cannabis cultivation licenses and five dispensary licenses in the state.

Missouri’s medical cannabis industry is still not yet online and regulators only awarded some operator licenses last month. Voters approved the medical cannabis amendment 66 percent to 34 percent during the midterm elections.

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Cannabis Firm Accused of $4.85M Ponzi Scheme

2/05/2020

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The Securities and Exchange Commission (SEC) filed a complaint against Robert Russell on January 21 in a federal court in Santa Anna, California. The complaint accuses Russell and his partner, Guy Scott Griffithe, of defrauding investors of $4.85 million dollars, the Seattle Times reports.

No charges have been filed in the case, but the SEC has charged Russell and Griffithe with a host of civil violations and seeks the return of their fraudulent gains. Robert’s wife Sonya was also listed in the complaint as a “relief defendant.”

The complaint alleges that the men promised investors large profits from their now-defunct Green Acre Farms in Anacortes, Washington. The SEC says many investors cashed in their retirements or took loans from family members to invest, while the Russells and Griffithe allegedly took $3.5 million of the money and spent it on luxury cars, a 65-foot yacht, and other luxury goods.

Using shell companies in California, Griffithe is alleged to have enticed “at least” 25 investors to invest in SMRB, Green Acre Farms’ parent company. 

“Griffithe and Russell exploited popular interest in the cannabis industry to obtain millions of dollars from investors who thought they were buying into a profitable business.” — Melissa R. Hodgman, the associate director of the SEC’s Enforcement Division, via the Seattle Times

Green Acre Farms has sold a total of $6,495,454 of cannabis products since they were granted a producer/processor license in February 2016, according to 502data.com, a website dedicated to tracking Washington State cannabis revenue. During the last month of sales before the farm closed in December, the company sold $96,010 in cannabis; throughout the life of the business, sales were frequently above $150,000 a month. Despite these seemingly large receipts, according to the SEC complaint, Green Acre Farms was never profitable. 

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California Will Require Cannabis QR Codes

2/05/2020

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California’s Bureau of Cannabis Control has announced emergency regulations that would require cannabis retailers and delivery services to post QR codes in their storefront windows and carry it with them while transporting or delivering cannabis products.

“The emergency regulations are designed to help consumers identify licensed cannabis retail stores, assist law enforcement and support the legal cannabis market, where products such as vape cartridges are routinely tested to protect public health and safety.” – Bureau of Cannabis Control, February 3, in a press release

The changes would allow consumers to check whether a dispensary is licensed by the state and allow law enforcement to scan the codes to determine whether they are transporting products that originated in the regulated market.

Terra Carver, of Humboldt County Growers Alliance, told the Times-Standard the organization appreciates the “proactive approach” by the agency to help consumers identify legal retailers. She said it’s “literally” a matter of “life or death” for consumers who are “trying to figure out if the dispensary they are shopping at is selling poisoned products or not.”

The rules are subject to five days of public comments. If approved, California would be the first state to require QR codes as part of its cannabis enforcement mechanisms.

According to an Arcview and BDS Analytics report outlined by CNN, illicit cannabis sales in California in 2019 were estimated at $8.3 billion, while legalized sales were expected to reach $3 billion.

The agency first announced the QR codes plan in January.

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NCIA Announces New Members of Board of Directors

2/05/2020

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Newly-appointed members and several incumbents will replace long-serving members for 2020-2022 term

WASHINGTON, D.C. – The National Cannabis Industry Association (NCIA), the country’s largest cannabis trade association and industry advocacy organization, will be seating its newly-appointed board of directors this month at the Northeast Cannabis Business Conference in Boston.

The organization’s Nominating Committee brought on five new board members. Narbe Alexandrian is the president and CEO of Canopy Rivers, a major investment and operating platform structured to pursue opportunities in the cannabis sector. Omar Figueroa, principal of Law Offices of Omar Figueroa, Inc., is a long-time cannabis activist and attorney representing cannabis-related businesses throughout California. Liz Geisleman is the vice president of Rocky Mountain Reagents, Inc., which has provided biological and chemical product solutions to a wide variety of industries for over 50 years. Ryan Hurley is general counsel for Copperstate Farms, one of the largest licensed medical cannabis cultivators in the country. Chris Jackson is the co-founder of Indica LLC and Sticky Ypsi, a cannabis provider based in Michigan.

Three incumbent board members were also re-elected for another term: Cody Bass, founder and executive director of Tahoe Wellness Center; Khurshid Khoja, current board vice-chair and principal of Greenbridge Corporate Counsel; and Manndie Tingler, co-founder and CRO of Khemia Manufacturing and business development officer for Natura.

The full list of board members and their bios is available here.

Outgoing board members include current Board Chair A.C. Braddock, Jessica Billingsley, Alex Cooley, Steve DeAngelo, Sean McAllister, and Erich Pearson.

“It has been a pleasure to lead NCIA’s board at such a revolutionary time in the emerging cannabis industry,” said A.C. Braddock, CEO of Eden Labs. “We have taken great strides in terms of acceptance and legitimacy in the last few years, and this momentum will only continue as we get closer to ending prohibition through education and political unity. I look forward to continuing my involvement with NCIA in other capacities to build an industry based on the science of this plant to promote health and wellness and to support mission driven business.”

“I’m deeply grateful to the NCIA for electing me to the board since the founding of our organization almost ten years ago, and am proud to have been a part of growing NCIA into the powerhouse it has become,” said Steve DeAngelo, founder of Harborside, Inc. “Together we have alleviated untold suffering, saved countless lives, and changed the world. I can’t wait to see what the next decade will bring!”

“Being an NCIA board member has been one of the most enjoyable parts of my life and career,” said Alex Cooley, co-founder of Solstice. “I have deeply enjoyed working with the board and staff over the past several years to change the face of cannabis in the U.S. and ultimately the world. This is by no means goodbye, as I look forward to continuing my participation with NCIA in the coming years and especially look forward to attending our 10th Annual Lobby Days in Washington, D.C. this May.”

“Having a trade association with the knowledge, experience, and ability to represent cannabis businesses on the national stage is absolutely vital to the long-term success of this industry, and we are in good hands with NCIA,” said Sean McAllister, co-founder of McAllister Garfield, P.C. “I’m happy to have been a part of this important work, and excited to see the progress we have made in recent years – and will make in the future – with this organization looking out for the interests of its members and the cannabis industry as a whole.”

“It’s been a pleasure to serve on NCIA’s board for the past several years. I am proud of the work we’ve done to move cannabis policy forward around the country,” said Jessica Billingsley, CEO of Akerna.  “I’m confident the organization will continue to lead the cannabis industry in the right direction and help businesses of all kinds and sizes flourish as we enter a new era of growth and legitimacy.”

“NCIA is leading the way in providing advocacy and resources for the cannabis industry and protecting the interests of the businesses that are involved in it,” said Erich Pearson, CEO of SPARC. “I am glad to have been able to contribute to its efforts as a member of the board and will continue to support its work as we fight to end prohibition and make the cannabis industry an example for others to follow.”

The first board meeting with new and incumbent members is slated to take place later this month.

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The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the U.S. and the only organization broadly representing cannabis-related businesses at the national level. NCIA promotes the growth of a responsible and legitimate cannabis industry and works toward a favorable social, economic, and legal environment for that industry in the United States.

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Whoopi Goldberg’s Cannabis Brand Shuts Down

2/05/2020

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Whoopi Goldberg’s women-focused cannabis company, Whoopi & Maya, has shut down, according to a statement posted on the company’s website. Goldberg started the company with Om Edibles founder Maya Elisabeth.

“In 2016, we launched with an urgent mission: to offer safe, natural relief for period pain through the miracle of medical cannabis. We proved there’s a market for this medicine and it’s been our joy to offer this miraculous relief to our treasured customers. It has been our privilege to serve the community. Though we’ve all come a long way, there’s far more to be achieved. This is simply the end of a single chapter in a larger story, one that we invite you to continue.” – February 4, 2020 announcement, WhoopiandMaya.com

Rick Cusick, a Whoopi & Maya board member who helped found the company, told CNN that the decision to shutter the business was due to personal issues between the founders and being forced to “jump through hoops” by California regulators.

“We were well on the way to [being cash-flow positive] but then we had to jump through hoops to change our packaging … and then change our packaging again,” he said, adding that “it became clear … that Whoopi and Maya wanted a divorce” but it was unclear how they could move forward with the company without either of the founders because both of them “were very integral” to its operations.

According to CNN, the company’s board and its investors will meet separately this week to discuss a possible future for the company’s products. Neither Goldberg nor Elisabeth have made any public statements about the closure.

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Minnesota House Majority Leader to Introduce Legalization Bill

2/05/2020

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Minnesota House Majority Leader Ryan Winkler (D) plans to introduce recreational cannabis legalization legislation early in this year’s session. The announcement follows a 15-city Be Heard Cannabis Tour in the state, during which Winkler said residents were “united” in their beliefs that the state’s current cannabis laws “don’t work.”

“The cannabis legal system we have today is a failure and the message is we need to figure out how to move on from that.” – Winkler, during a February 4 press conference

During his remarks, Winkler outlined the “principles” of the legalization proposal, including taxation and regulations, criminal justice, public health, and economic development. Winkler added that the bill, which has yet to be drafted, would include social equity provisions.

According to a Bring Me the News report, Gov. Tim Walz (D) has previously expressed support for the reforms and indicated he would sign a broad legalization bill; however, the state Senate is controlled by Republicans and Senate Majority Leader Paul Gazelka told Minnesota Public Radio last year that lawmakers should “be slow” on the issue and that cannabis use leads to “mental health problems, driving accidents, and impaired teen brain development.”

Last session, a Senate panel rejected a legalization measure and Gazelka told MPR that he didn’t expect the chamber to take up a legalization bill during this year’s session.

Winkler told reporters on Tuesday that Galzeka has been “unequivocal” in his opposition and admitted that it was “highly likely” that reforms could take “more than one year to get it done.”

The Marijuana Policy Group last year estimated legal cannabis sales in Minnesota could bring in $300 million over five years on sales of $1.2 billion.

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Lifted Announces Custom Website & App Services for Cannabis Marketing

2/04/2020

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Lifted, a cannabis technology platform, announced a new platform to help shops and brands launch custom apps and websites. Their goal is to help businesses sell directly to customers and reduce dependence on marketplaces like Weedmaps.

Lifted can be found at https://lifted.app

“Monopoly marketplaces create unhealthy competition and make it difficult to retain customers. It’s more important than ever for shops, delivery services, and brands to connect with customers directly through their own independent online presence. Lifted makes it fast, easy, and affordable for businesses to launch custom mobile apps and websites,” said Michael Boyle, CEO of Lifted. “Custom apps and websites help people build direct relationships with businesses, stay informed, and get rewarded for their loyalty.”

Based in Southern California, Lifted was founded in 2016 and serves hundreds of dispensaries and delivery services in the United States and Canada.

Independent apps and websites

Using Lifted, shops, brands, and creators can easily launch their own custom websites and apps. Members can download apps from Apple’s App Store for iPhone and iPad and from Google Play for Android devices. Websites use their own domain name and are SEO-optimized to be among the top results in search engines like Google.

Push Notifications and SMS

Using Lifted’s Broadcasts system, businesses can easily send announcements, deals, and offers to all of their members via SMS or app-based push notifications. Analytics tell businesses how many members engage with a broadcast including how many go on to make a purchase.

Loyalty, Points, and Rewards

Shops are able to offer their members points and rewards for purchases. This gives customers a reason to come back in the future to shop instead of looking for deals from competitors.

Additional features in Lifted include:
  • Online menus and ordering make it easy for customers to browse products and place orders for pickup or delivery. Menus can sync with existing online menus or POS systems so inventory is always accurate.
  • Store locator helps brands direct members to nearby retail and delivery services that carry their products.
  • Private chat allows members to message businesses and cut down on phone calls and in-shop consultations.
  • Community feeds enable businesses to post cannabis content to their own app which won’t get shutdown unlike on Instagram.
  • Events keep members informed of patient appreciation days, product demos, and special opportunities.
  • Contests make it fun for members to create and submit their own content. Winners can be selected, notified, and awarded points.

For more information, please visit https://lifted.app.

To schedule a free consultation, please contact Lifted at info@lifted.app.

 

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Activists Block Concentrates Ban in Washington

2/04/2020

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Washington’s well-publicized “10 percent concentrates bill” has been stopped in committee for the 2020 session. HB 2546, “Concerning the Potency of Marijuana Products, would have limited cannabis concentrates in the state at just 10 percent potency for THC. The bill had its first and only hearing last week on January 30.

During the hearing, proponents of the bill expressed concerns about teen psychosis and fetal THC exposure. The bill’s primary sponsor, Rep. Lauren Davis (D), cited stories of teens discovered at school in the “throes of psychosis” after doing dabs and, as Executive Director of the Washington Recovery Alliance, reports from inpatient psychiatric hospital directors that they were seeing teens and young adults with “cannabis psychosis” on a regular basis. Davis referred to various other studies related to cannabis psychosis, concluding with a 2017 National Academy of Medicine meta-analysis on three decades of cannabis data that pointed to a “strong to moderate” connection between cannabis and psychosis.

Henry Levine, a representative of the Washington State Psychiatric Association and someone who teaches other doctors around the country about “marijuana,” testified in favor of the bill.

“But most importantly are its multi-generational effects on youth particularly. High THC marijuana impairs judgment, impairs impulse control and increases sex drive. That is a bad combination in youth. When youthful users get pregnant, THC crosses into the circulation of the fetus where it impairs the baby’s brain development.” — Henry Levine, during testimony sampled by the Cannabis Observer

In the end, opponents of the bill — primarily adult-use cannabis business owners, medical cannabis advocates, and their allies — triumphed. They argued the bill would hurt businesses and affect medical cannabis patient’s access to the stronger forms of medicine that concentrates provide. Others pointed out that these concentrates have been around for many years and putting them back on the unregulated market would be a “step backward.”

After a short break, Representatives returned and House Commerce and Gaming Committee Chair Strom Peterson (D) said the bill would not be moving out of the committee, but acknowledged the importance of the conversation. Over the weekend, sources say SB 6332, the Senate companion bill, was pulled due to overwhelming opposition.

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Court Approves Prescription Tax Cuts for Cannabis Businesses

2/04/2020

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A New Mexico appellate court has ruled that state-licensed medical cannabis producers can claim a tax deduction for prescription medication, the Albuquerque Journal reports. New Mexico has never allowed the industry to take the deduction and medical cannabis companies paid about $24 million in gross receipts taxes over the last three years, the report says.

Sen. Jacob Candelaria (D) told the Journal that the ruling has “a direct potential fiscal implication to the state” and that lawmakers will need to set aside funding for the tax claims if the ruling survives appeal.

The Court of Appeals verdict overturns a hearing officer’s decision and says medical cannabis meets the definition of a prescription drug under New Mexico tax code because physicians are required to certify patients for the program and that both medical cannabis and the allowable tax deduction for prescription drugs both intend to make medicine more accessible to patients, according to the report. The state’s cannabis laws don’t define cannabis as a prescription drug.

Candelaria suggested to the Journal that the ruling could have implications beyond the tax code, including on workplace medical cannabis policies, and the rights of inmates and others under state supervision to use medical cannabis.

Last year, the New Mexico Corrections Department updated its guidelines allowing registered patients on parole or probation to use their physician-recommended medical cannabis products. If the ruling in upheld and serves to define cannabis as a prescription drug, it could allow inmates and those awaiting trial – who are not covered by the Department of Corrections guidance – access to their medicine.

The ruling could ultimately lower cannabis prices for patients in the state if companies no longer have to pay the state taxes. The Taxation and Revenue Department has until Feb. 27 to appeal the ruling.

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Cannabis Driving Arrests Up Slightly in Edmonton, Alberta

2/04/2020

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Edmonton, Alberta, Canada law enforcement report a slight uptick in post-legalization cannabis-impaired driving arrests, from 33 in the first 10 months of  2018 to 39 over the same period in 2019, the CBC reports. Overall, the Edmonton Police Service said they arrested 134 drug-impaired drivers last year, up from 115 the year prior – a 17 percent increase.

Over the past two years, cannabis impairment has comprised about 29 percent of drug-impaired driving arrests in Edmonton, according to police.

The agency said the drug-impaired driving process takes six times longer and costs six times more than the process for alcohol; $537 on average. The department also conducted around 30 roadside checkpoints last year, the report says. The Edmonton City Council approved $1.4 million to police following legalization but denied a subsequent $3 million request to hire 24 more officers, instead asking police for quarterly updates on the financial and social costs of legalization.

At least 759 Edmonton Police officers were also trained on the new cannabis laws last year and, since 2015, there has been a 10-fold increase in the number of its officers who can administer the roadside sobriety tests.

In December, Saskatoon, Saskatchewan police indicated they “experienced fewer issues than were expected” after legalization. In their report, the agency said that from October 17, 2018, to October 17, 2019, only eight of the city’s 292 driving-while-impaired violations were directly related to cannabis intoxication.

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Curaleaf Completes Acquisition of Cura Partners

2/04/2020

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Massachusetts-based Curaleaf Holdings Inc., has completed its acquisition of Oregon’s Cura Partners including 53 dispensaries, wholesale business, and Select brand. The deal, initially announced worth $950 million, closed at less than $400 million, according to Oregon Live.

The deal comes on the heels of a $110,000 Oregon Liquor Control Commission fine against Cura for incorrectly labeling more than 180,000 Select vape products as “100 percent cannabis” despite containing “botanically derived terpenes and/or medium-chain triglyceride (MCT) oil as an ingredient.” A lawsuit has also been filed against the company for the claims and mislabeling, which regulators called an internal communication problem rather than an attempt to deceive.

Joseph Lusardi, CEO of Curaleaf, called the deal “a major milestone” in the company’s history, marking “an unprecedented phase of growth” for the firm.

“As we’ve scaled, Curaleaf has pioneered the U.S. cannabis industry, and we’re incredibly excited about the future and our leadership role in it. Our entire organization is focused on accelerating our growth as a combined company with two of the fastest growing cannabis brands in the country.” – Lusardi, in a press release

Cameron Forni, the founder of Select and one of the company’s largest shareholders, will serve as president of the brand.

In 2018, Cura’s sales reached $118 million and was the state’s largest cannabusiness, according to Oregon Live, who note that Cura had conducted a round of layoffs during the holiday season, but the details of those layoffs remain unknown.

The precipitously lower-than-expected closing price comes amid sharp declines in cannabis stocks and lower overall company valuations in the space.

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Sanders Pledges to Legalize Cannabis on First Day as President

2/03/2020

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Vermont Senator and presidential candidate Bernie Sanders (I) pledged over the weekend that, if he is elected, he would legalize cannabis nationwide on his first day as president, Forbes reports.

“We will end the destructive war on drugs. On my first day in office through executive order we will legalize marijuana in every state in this country.” — Vermont Sen. Bernie Sanders, at a campaign rally in Cedar Rapids

Sanders also pledged to expunge cannabis possession arrest records and that the reforms would include social equity elements.

“We will make certain that the legalized marijuana industry is not controlled by a handful of corporations but that those people — the African-American community, the Latino community, the Native American community — those people who have suffered the most will get help in order to make money through a legalized marijuana industry,” he said.

It is not the first time that Sanders has promised to legalize cannabis via executive order — the candidate told podcaster Joe Rogan last August that he planned to end federal cannabis prohibition if elected. In October, the candidate outlined a more specific legalization plan.

Cannabis has emerged as an important issue in the 2020 Democratic Primaries, with most of the race’s progressive candidates having adopted some form of cannabis and/or drug policy reforms as a part of their platform.

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Oregon Company Fined for Mislabeled Cannabis Vapes

2/03/2020

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The Oregon Liquor Control Commission has levied a $110,000 fine on Cura Cannabis – the state’s largest cannabis company – over allegations that the firm incorrectly labeled its Select vape products as 100 percent cannabis but contained “botanically derived terpenes and/or medium-chain triglyceride (MCT) oil as an ingredient,” according to an Oregon Live report.

The settlement between the state and the company includes a $10,000 “dishonest conduct” sanction, which is lieu of a 34-day license suspension. Those botanically derived terpenes were briefly banned by Gov. Kate Brown last fall during the early vaping-related respiratory illness episodes.

Two days after the announcement of the settlement, a Portland couple filed a lawsuit against Cura demanding that the company give up any profits it made from the mislabeled products, according to Willamette Week. State regulators claim that Cura mislabeled more than 180,000 Select vape products. Emails obtained by the Portland Business Journal show the company told the OLCC the mislabeling was an internal communication problem rather than an attempt to deceive.

Michael Fuller, the attorney who filed the suit on behalf of the couple in Multnomah County, said the final judgment against the company could “exceed $37 million including statutory damages.”

The OLCC action and lawsuit come as Massachusetts firm Curaleaf Holdings Inc. is trying to close its all-stock deal to buy Cura. The deal, announced last year, was initially worth nearly $1 billion but, according to Oregon Live, the transaction is now worth about $400 million following sharp declines in cannabis stocks and lower overall company valuations.

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New York State Bar Backs Cannabis Legalization

2/03/2020

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The New York State Bar House of Delegates has approved a resolution in support of adult-use cannabis legalization in the state. The association’s Committee on Cannabis law recommends that the reforms include state taxes, social equity, environmental protections, advertising and marketing regulations, municipal opt-out options, U.S. Department of Agriculture-mandated testing, and the creation of an Office of Cannabis Management.

The report also suggests that state officials would benefit from recruiting the RAND Corporation, a nonprofit global policy think tank, or similar organization to analyze a legalization policy. The association notes that the RAND Corporation has been used by other states looking to legalize adult-use cannabis.

The organization’s opt-out policies suggest that counties or cities that opt-out of cannabis sales would not get a cut of the tax revenues derived from the industry – which is the case in other states that have legalized cannabis. The report points out that the town of North Hempstead in Nassau County has already passed local legislation to prohibit adult-use cannabis sales. The town of Islandia in Suffolk County has promised to sue the state if it legalizes cannabis statewide.

The association recommends that the state look to the six most recent states to legalize cannabis when drafting its social equity provisions and suggests commissioning “an outside research entity like RAND” to help guide those rules.

“We recommend that New York not adopt any specific social equity provisions until this analysis is complete, but that such efforts should not prevent comprehensive regulation of legalized adult-use cannabis.” – New York State Bar Association, in the resolution

The Bar Association suggests that the social equity provisions include business incubator programs, hiring requirements, earmarking of tax revenues for communities most impacted by the War on Drugs, and prohibiting “local or state government from discriminating against licensing applicants on the basis of their substance-use treatment history, or convictions unrelated to honesty.”

The report also backed the American Bar Association’s 2019 resolution calling for cannabis’ removal from the federal Controlled Substances Act.

Gov. Andrew Cuomo (D) has included cannabis legalization as part of his 2021 Executive Budget.

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Cannabis Tax Revenues Fall Short in Canada

2/03/2020

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Cannabis-derived revenues in Canada didn’t meet government expectations during the country’s first fiscal year of legalization, totaling $18 million on estimates of $35 million, the National Post reports. The less-than-expected revenues from 2018-2019 have forced the government to lower their expectations for this fiscal year from $100 million to $66 million.

Officials are still betting on cannabis tax revenues to reach $135 million next year and to $220 million by 2023, according to a House of Commons report.

Finance Minister Bill Morneau’s press secretary, Pierre-Olivier Herbert, defended cannabis legalization despite the lower-than-anticipated revenues, telling the Post that the reforms were meant to ensure there is a safe, legal, market and that the government “implemented a strict legal framework to regulate and restrict access to cannabis” in order to keep it “out of the hands of youth, and profits out of the pockets of criminals and organized crime.”

“Various factors contribute to excise tax revenues including the volume of sales and available supply. Provinces are responsible for distribution, licensing and overseeing the distribution and sale of cannabis.” – Herbert, to the National Post

Ontario made $217 million in cannabis sales during the last fiscal year – the most of any province – followed by Alberta with $196 million and Quebec with $195 million. In all cannabis sales throughout the nation topped $907 million last year, according to the report.

The national rollout of legal cannabis sales didn’t include so-called “alternative” cannabis products, such as edibles and topicals which hit most store shelves in mid-December. The exclusion of those products at the onset likely had a negative impact on first-year sales. Illegal cannabis products were also cheaper than their legal counterparts, according to Statistics Canada which found illegal flower products were about $4 less per gram than in the legal market.

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Berkeley, California Approves Social Cannabis Use

1/31/2020

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The Berkeley, California City Council has approved a measure allowing on-site cannabis consumption at dispensaries that install a ventilation system, according to a Bay City News report. The changes also allow up to seven cannabis delivery services in the city.

In a report to the council, city staff members said the reforms were necessary because cannabis consumption is illegal in public spaces, in many apartments, and at most businesses.

“Providing a place to consume cannabis legally is important for patients who have no other options,” the staff said in the report.

Following the vote, the Berkeley Patients Group, reportedly the oldest dispensary in the nation, thanked the councilors for their “diligence and thoughtfulness” adding that the officials “have shaped the most progressive cannabis regulations in the country.”

In 2018, the city council passed a resolution making it the first cannabis sanctuary city in the U.S., barring local law enforcement officials from working with the federal government to enforce federal cannabis laws. A month after passing the landmark sanctuary legislation, the council reduced its sales tax on cannabis from 10 percent to 5 percent.

“We’d also like to thank the staff, who spent three years researching and developing their prudent recommendations for a post-legalization world.” – Berkeley Patients Group, in a statement, via Bay City News

The measure was opposed by the Berkeley Community Health Commission because of secondary exposure and impaired driving risks. The commission also asserted that public cannabis consumption undermines city smoke-free air policies promotes the normalization of smoking.

California’s legalization law allows social use but the regulations must be approved by municipalities before any on-site consumption can occur. According to a Freedom Leaf report, San Francisco, West Hollywood, Cathedral City, Emeryville, Lompoc, Eureka, and Ukiah also allow social cannabis use; however, at least a third of California cities and towns have barred recreational cannabis operations.

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MedMen CEO Resigns and Gives Up Controlling Shares

1/31/2020

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Adam Bierman, the embattled CEO and co-founder of MedMen Enterprises, is stepping down from his duties starting February 1, Investors Business Daily reports. The company board has named Ryan Lissack, MedMen’s chief operating officer and chief technology officer, as interim CEO.

As part of his resignation, Bierman will also surrender his super-voting shares back to the company, helping to resolve a disputed ownership structure that had put power largely in the hands of Bierman and fellow co-founder Andrew Modlin, which had concerned shareholders. Modlin has also agreed to surrender his own super-voting shares — for now, however, Modlin’s shares have been turned over to executive chairman Ben Rose. Those shares will be officially turned over in December later this year.

“The Board supports both Adam’s decision to step aside for a new CEO to lead the Company, and his and Andrew’s decision to surrender their voting rights to give all shareholders a stronger voice. This evolution will provide Adam the space to contribute to the future of MedMen and extend his commitment to the industry that he has helped pioneer.” — MedMen Executive Chairman Ben Rose, in a press release

Concerns have circulated about the company’s finances and expansion plan since a planned merger with PharmaCann was called off towards the end of last year. Additionally, the firm downsized in November, cutting more than 190 jobs, while it was reported earlier this month that MedMen had started offering to pay vendors in company stock instead of cash. Last week, Bierman hosted an “Ask Me Anything” on Reddit and was beleaguered with difficult questions, many of which were either deflected or left unanswered.

MedMen’s stock value has continually suffered through the past months’ developments, but shares jumped 12% on the news of Bierman’s resignation, according to the report.

“I continue to believe that MedMen is positioned to thrive. It’s time for our next iteration of leadership to capitalize on the opportunity we have created,” Bierman said in a statement. “This has been an incredible journey and I will continue to be inspired by those around the globe working to make our world safer, healthier and happier through access to legal, regulated cannabis.”

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Report: Oregon Has Most Dispensaries Per Capita

1/31/2020

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Oregon has 16.5 cannabis dispensaries per 100,000 people – more per capita than any other state, according to a report by Verilife. Oklahoma ranks second, according to the analysis, with 15.6, followed by Montana (15.1), Colorado (14.1) and Alaska (12.7).

The report found that California made the most from cannabis-derived tax revenues in 2018, raking in $345 million from the industry despite having only 1.6 dispensaries per 100,000 people and with two-thirds of the state’s municipalities banning industry operations.

Washington state also netted more than $300 million in tax revenues from cannabis in 2018 – $319 million total – while hosting 6.2 dispensaries per capita; while Colorado saw $266 million in tax revenues from the industry. Oregon, despite having the most dispensaries per capita, made $94.4 million from cannabis taxes in 2018.

According to the report, Missoula, Montana had 18.1 dispensaries per 50,000 – the most of any city – followed by Medford, Oregon (17), Pueblo, Colorado (16.6), Eugene, Oregon (16.1), and Denver, Colorado (14.9).

“Considering it was among one of the first states to legalize medicinal marijuana, it might not be too surprising that Oregon hosts the most marijuana dispensaries per capita,” the researchers note, adding that there are more than 660 dispensaries located throughout the state.

Oklahoma is a surprising number two on the list, having only legalized medical cannabis in 2018. The state saw $70,000 in cannabis revenues during its first year in operation, the least of any state included in the report.

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Cannabis Reforms Take Effect In Australian Capital Territory

1/31/2020

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The Australian Capital Territory’s cannabis reform laws, which remove criminal penalties and fines for low-level possession and use, are now in effect, the Australian Broadcasting Corporation reports. The law was approved last September despite opposition from the federal government and a United Nations warning that the law violates international drug treaties.

Under the law, Canberrans 18-and-older can grow up to two cannabis plants in their homes, up to four plants total per household, and possess up to 150 grams of “wet” cannabis or 50 grams of “dry” cannabis. Plants must be grown in a garden or pot – not hydroponically – but individuals may not give, share, or sell the plants or seeds. There is no legal way to obtain the seeds in Australia.

“If you have some marijuana or you have a plant, someone, at some time, committed a criminal offence. You didn’t get the seeds from divine intervention, and whoever gave them to you committed the offense of trafficking.” – Michael Kukulies-Smith, chair of the ACT Law Society’s criminal law committee, to ABC

The law does not allow any sharing or gifting and that includes simply sharing a joint, which remains a crime of supplying a prohibited substance and carries a maximum penalty of A$80,000 and up to five years in jail.

Kukulies-Smith noted that ACT Police still have the authority to make arrests in the region under federal laws, which still prohibit cannabis possession and use. He said that citizens “don’t really have any understanding of how the police’s top brass” will handle the situation.

“Individual police officers are going to have a lot of discretion, unfortunately,” he said in the report. “If you have no prior convictions and aren’t usually in trouble with the police, you’ve very unlikely to get into trouble. But if you have priors or you upset an officer, they might decide to use Commonwealth law instead.”

The ACT is the first region in Australia to legalize cannabis in any form. Prior to the reforms, any adults caught with a plant in the territory would have been subject to a A$160 fine.

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Cannabolish Odor Eliminating Candle & Sprays

1/31/2020

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Cannabolish‘s parent company, OMI Industries, is no stranger to the cannabis industry. In fact, the chemist who developed these products has made other cannabis smell absorbing products for OMI Industries including ECOSORB CNB 100 which is commonly used in grow rooms. Cannabolish candles and sprays aren’t like all of the other aromatic candles found at the store, they use eco-friendly ingredients to destroy odor molecules, not just cover them up.

There are some very positive points to note about Cannabolish, including the fact that these products are safe for the earth. Many smell absorbent products use harsh volatile organic compounds (VOCs) and chemicals, but Cannabolish doesn’t. These products are completely natural. On top of that, the packaging and design of the sprays and candles fit nicely into a home with a modern design. The candles are green votives with chestnut-colored labels and lids. The sprays match that scheme with green opaque glass bottles and brown paper labels. But the real magic is what happens when Cannabolish meets cannabis odor molecules. 

The chemist behind the product, Dr. Laura Haupert, explained how the spray works in a recent Forbes article with Warren Bobrow: the odor molecule is adsorbed first when it meets Cannabolish. Adsorption is the same process as when a dye takes to a piece of cloth. Then, the molecule is absorbed into the Cannabolish droplets in the air and, in this phase, the ambiance odor is considered controlled. 

After a month of using the Cannabolish line, we can definitely agree that the product works. The aroma of the candle emanating in the room is fresh and minty with a bit of earthiness, a very pleasant smell even if you’re not trying to cover up the remnants of a good sesh. The candle is a great thing to leave behind for a bit after lighting up a joint. 

As for the sprays, the scent of the mist definitely neutralizes the cannabis aroma. The smaller sized bottle is a great option to keep in the car. I pulled over and toked a little bit of a joint an hour or so before picking up a couple of people that I carpool with. After smoking and before picking them up I spritzed the car with Cannabolish. Once I picked them up nobody said anything about the skunk smell, so I asked if they could smell anything. The answer? Not even a little bit. Based on a month of using the Cannabolish suite of products, experience shows that they really do work. 

The Cannabolish product line is beautiful to look at and since it actually works, Ganjapreneur would recommend the candle and the spray for any cannabis consumer who is looking to stay aromatically under the radar.

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Judge Rules Company Must Forfeit Confiscated Hemp

1/30/2020

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An Idaho judge has ruled that Colorado-based Big Sky Scientific must forfeit the 6,701 pounds of hemp seized by Idaho State Police last year as it was being transported from Oregon to Colorado, KTVB7 reports.

The incident occurred last February when the driver, who works for IYI Trucking and neither Big Sky nor Oregon-based Boones Ferry Berry Farms, stopped at a weigh station near Boise for an inspection by state police. After officers found the hemp, they arrested the driver and charged him with felony drug charges; ultimately, he pled guilty to a lesser misdemeanor charge of carrying an improperly permitted load including faulty bill of lading. Following his initial arrest, the state police said that despite the bill of lading indicating the cargo was industrial hemp “the trooper’s training and experience made him suspicious that the cargo was in fact marijuana.”

Fourth District Judge Jonathan Medema ruled that hemp is still a controlled substance under state law – despite federal laws – writing in his memo that “it is a crime (in Idaho) to possess any plant with that genus, unless one possesses only the mature stalks of the plant.”

The ruling comes from a lawsuit by Big Sky against the Idaho State Police. The company said in September that they were willing to drop the suit if the hemp, valued at $1.3 million, was returned. Big Sky’s attorney, Elijah Watkins, told KTVB that he was evaluating the judge’s decision before deciding whether or not to file an appeal or see if there are any pieces of the case that could be considered by the state Supreme Court.

According to the report, at least three out-of-state truckers have been arrested transporting hemp through Idaho since federal legalization in 2018. In November, Republican Gov. Brad Little signed an executive order to allow hemp transport through the state. The executive order does not allow hemp production and requires the Idaho State Department of Agriculture, Idaho State Police, and Idaho Transportation Department to come up with temporary rules and work cooperatively to carry out the order.

State lawmakers are considering hemp legalization legislation.

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Indiana Aims to Block Local Cannabis Decriminalization

1/30/2020

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Indiana Republicans have passed a bill out of committee that would allow the state to step in and enforce cannabis laws if local prosecutors choose not to, or if a citizen vote was held to not enforce a particular law, the Associated Press reports. The move appears to be in response to a decision by Marion County prosecutor Ryan Mears, who announced his office would not prosecute small amounts of cannabis possession, and a Northwest Indiana county which considered writing tickets for possessing an ounce or less of cannabis instead of making an arrest.

The proposal would allow the Attorney General to appoint a “special prosecutor” to intervene in local cases. The bill was passed out of committee on a vote of 6 to 3 and now heads to the Indiana Senate.

The author of the bill, Michael Young (R), says the proposal will also force local prosecutors to try trespassing, disorderly conduct or prostitution not just cannabis,  pointing to Boston and San Francisco as examples of the current “social justice” movement sweeping the country.

“It’s because of the social justice prosecution phenomena that’s going on throughout the country. I wanted to try to head it off in Indiana.” — Young, via the AP

Cannabis arrests in Indiana recently hit the Presidential campaign as former South Bend Mayor Pete Buttigieg moved up in the Democratic Presidential Primary polls.

The Intercept reported last year while covering the Democratic primary that Indiana arrests African Americans for cannabis at a rate 3.5 times higher than their white counterparts. The report went further and shined a light on Pete Buttigieg’s record as mayor of South Bend, where African Americans were 4.3 times more likely to be arrested for cannabis than whites living in the city during his term.

 

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91-lb Cannabis Possession Case Dropped Due to Hemp Laws

1/30/2020

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An Ohio man caught with 91 pounds of what is suspected to be THC-rich cannabis was acquitted of drug charges due to hemp legalization in the state, according to a News 5 report.

Cleveland Metropolitan Bar Association President Ian Friedman, the defense attorney in the case, said that the prosecution’s test for just “the presence of THC” was insufficient because the state’s hemp law allows industrial hemp to contain 0.3 percent THC and the tests did not show THC levels.

“If you don’t get the concentration correct, you’re not going to be able to establish what it is,” Friedman said in the report, adding that it would be dangerous for prosecutors to convict someone without proving that the substance was, in fact, illegal.

“The precedent that they set carries forward on all sorts of cases, right? So, you want to make sure that you’re holding the state to its burden.” – Friedman, to News 5

In August, state Attorney General David Yost warned prosecutors that the legislative changes made quantitative analyses “necessary to ensure the THC content exceeds the statutory 0.3 percent level. In that memo, Yost said that law enforcement agencies should “suspend any identification” of cannabis testing in local jurisdictions because those methods “do not quantify THC content,” and not to “indict any cannabis-related items” prior to crime laboratories being able to perform the concentration tests.

Yost’s office has announced a $50,000 grant for agencies to send cannabis samples to out-of-state labs that can perform the testing and that $1,820 has been used from that grant.

On Monday, Rocky River police told News 5 that Cleveland Browns running back Kareem Hunt was not cited for cannabis possession last week due to Ohio‘s hemp legalization laws. In a statement, the Rocky River Police Department said that the law changes “have created challenges in prosecuting marijuana possession offenses” and that many municipalities are not issuing citations for low-level possession as a result of the reforms.

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