North Carolina’s First Cannabis Dispensary Set to Open 4/20

3/11/2024

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The Eastern Band of Cherokee Indians (EBCI) is set to open the first adult-use cannabis dispensary in North Carolina next month on April 20, the Charlotte Observer reports.

The store will be operated by the tribe’s subsidiary, Qualla Enterprises LLC, and will be located inside a renovated bingo hall. Officials chose April 20 for the store’s launch date because it marks “the biggest revenue date for cannabis,” Lee Griffin, company’s the human resources director, said during a meeting with tribal officials last week.

Griffin also said Qualla Enterprises is ready for a hiring spree that would support the adult-use operation and see a significant jump for the company from its current 69 employees to more than 350, the report said.

The Eastern Band of Cherokee Indians first legalized medical cannabis in 2021 and then last year, citizens living in the the Qualla Boundary — the 57,000-acre region controlled by the tribe — voted resoundingly to legalize cannabis outright.

Not only will the location be the first cannabis dispensary in the state, but it will also be the only adult-use cannabis option in North Carolina until cannabis reforms are enacted statewide. State law still strictly prohibits the use and possession of cannabis, even for medical purposes. Legislation to legalize therapeutic cannabis access was rejected last year by the House of Representatives for the second year in a row, just weeks before the tribe adopted its adult-use legalization policy.

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Florida Passes Ban on Delta-8 and Other Hemp Products

3/08/2024

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Florida lawmakers have passed a bill to ban delta-8 and THC products and establish other restrictions on the state’s hemp industry, sending the bill to Gov. Ron DeSantis (R) for his signature, the Tampa Bay Times reports.

The bill, which unanimously passed the Senate in February, would also ban delta-10 THC and hemp-infused gummies, tinctures, and vaporizer products. Under the proposal, any retail hemp products would have their THC content capped at 5 milligrams per serving or 50 milligrams per package. Product packaging perceived as appealing to children would also be banned under the proposal.

Hemp entrepreneur JJ Coombs said in the report that under the new rules, he would likely need to move his three hemp businesses — which account for 150 full-time positions — out of Florida.

“[The bill] hands over our industry to the black market, to dispensaries and to out-of-state manufacturers that are still shipping into the state of Florida.” — Coombs, via Tampa Bay Times

Florida’s hemp industry currently employs about 100,000 state residents, the report said.

Meanwhile, voters may get the chance to pass a cannabis legalization constitutional amendment this November if the state Supreme Court allows it after the attorney general challenged the ballot question last year. The court is still deciding the case but the governor said he expects the question will be allowed to go to voters.

A recent study found that delta-8 hemp products are far more popular in states that have yet to legalize adult-use cannabis, suggesting that federal cannabis reforms would drastically reduce demand for synthetically produced cannabinoids.

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Hawaii House Passes Bill to Expunge Some Criminal Records Including Low-Level Cannabis Possession

3/08/2024

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Hawaii’s House on Tuesday passed a bill to create a free, state-initiated, process for expunging certain criminal records, including arrests and convictions for promoting a detrimental drug in the third degree, Honolulu Civil Beat reports. The measure could expunge charges for more than 36,000 people arrested in the state for possessing less than 3 grams of cannabis, an offense decriminalized in 2019. 

There are more than 53,000 arrest records under the promoting a detrimental drug statute in the state’s criminal database but only about 10,000 of those arrests resulted in convictions, the report says. Not everyone charged under the law would be eligible for the full expungement due to other offenses.   

The Hawaii Criminal Justice Data Center (HCJDC) already manages a record expungement program by application for non-convictions and individuals convicted of certain first-time drug, property, and alcohol offenses are eligible under the program with a court order, the report says. The HCJDC receives about 1,440 requests for expungement per year and approves about 1,080 with about three-quarters resulting in full expungement; the remaining are partial expungements or rejected.  

The measure, which also includes provisions requiring the HCJDC to submit biannual reports to the Legislature until all records are expunged, moves next to the state Senate. 

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Maryland Multi-State Cannabis Brand Fined $55,000 for Skipping Ownership Approval

3/08/2024

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Editor’s note: this article originally appeared in The Outlaw Report, and has been republished with permission.

Maryland cannabis company Holistic Industries Inc. was fined $55,000 for failing to get approval before transferring ownership interests in its subsidiaries. The Maryland Cannabis Administration (MCA) announced the consent order in February.

Holistic Industries is a multistate operator. According to the company’s website, they have 15 legal stores in five different states including three in Maryland.

As the parent company of several licensed cannabis businesses in Maryland, Holistic Industries reportedly transferred ownership interests between July 2020 and July 2023 without notifying the MMCC (Maryland Medical Cannabis Commission) beforehand. These subsidiaries held licenses for processing, growing and dispensing medical cannabis.

According to Maryland regulations, since May 2020, all privately held cannabis businesses must seek and receive MMCC approval before transferring any ownership stake, regardless of size. However, Holistic Industries claims they acted on legal advice that such regulations didn’t apply in their case.

The consent order details the violations of specific Maryland regulations (COMAR) regarding ownership transfer procedures. The company must now:

  • Pay the $55,000 fine.
  • Ensure all future ownership transfers are approved beforehand.
  • Submit a Standard Operating Procedure (SOP) outlining ownership transfer procedures within 15 days.
  • Request retroactive approval for the past transfers within 45 days, or seek an extension if necessary.

Failure to comply with the order could lead to further actions, including suspension of the company’s cannabis licenses.

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Virginia Lawmakers Approve Bill Allowing Sentence Modification for Cannabis-Related Felonies

3/08/2024

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The Virgnia House of Delegates on Monday passed a measure that would allow individuals convicted of felony cannabis-related offenses to have their sentences modified, WRIC reports. The measure had previously passed the Senate, by a narrow 20-19 vote, and moves next to Republican Gov. Glenn Youngkin. 

According to Department of Corrections data, about 378 prisoners and approximately 1,229 people on parole or probation were serving time due to cannabis-related offenses as of Dec. 31, 2023. According to the bill’s financial impact statement, about 397 individuals in state custody would be eligible for sentence modification if the bill is signed into law.  

State Sen. Williams Graves (D), the bill sponsor, told the House subcommittee said as the state moves toward enacting adult cannabis use reforms “it is only right that we make right the charges for individuals, or those who are serving time or community service for these charges.” 

Under the proposal, individuals convicted only for cannabis-related offenses could have their sentences ended entirely, subject to the decision made at their hearings. Those with cannabis-related offenses convicted of another crime or crimes simultaneously could see their sentences reduced for some or all convictions, depending on the nature of the crimes; however, those who committed violent offenses will not be eligible for sentence reductions. 

Under the law, hearings for solely cannabis-related offenders would need to be scheduled by the locality’s circuit court by Jan. 1, 2025. For those with additional offenses, the hearings would have to be scheduled by April 1, 2025. These hearings will be scheduled automatically. 

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Study: Beer Sales in Canada Fell 2.8% After Cannabis Legalization

3/07/2024

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Beer sales in Canada fell by 96 hectoliters per 100,000 population immediately after adult-use cannabis legalization and by 4 hectoliters per 100,000 population each month thereafter, resulting in an average monthly reduction of 136 hectoliters per 100,000 population post cannabis legalization in the nation, according to a study published last month in the journal Drug and Alcohol Dependence. All provinces except the Atlantic provinces experienced a decline in beer sales. 

Using data on beer sales between January 2012 and February 2020 and spirits sales between January 2016 and February 2020, the researchers found no change in spirits sales or sales of bottled beer but found reductions in the sales of canned and kegged beer. Canada legalized cannabis for adult use nationwide in October 2018. 

“Although the magnitude of decline in beer sales appears to be modest, it is economically meaningful. Compared with the total beer sales in September 2018 (before the legalization) of 4,842 hectoliters per 100,000 population, the average monthly decline of 136 hectoliters per 100,000 population by February 2020. represents a 2.8% decline in sales.” — Association Between Non-Medical Cannabis Legalization and Alcohol Sales: Quasi-Experimental Evidence from Canada, Drug and Alcohol Dependence, 2/27/24 

The researchers, from the University of Manitoba College of Pharmacy, Memorial University of Newfoundland School of Pharmacy, and University of Toronto Leslie Dan Faculty of Pharmacy, concluded that the study suggests the consumers “may be substituting non-medical cannabis for beer.” 

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Maryland Cannabis Lottery Faces Potential New Delay as Social Equity Applicant Sues MCA

3/07/2024

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Editor’s note: this article was contributed by LJ Dawson of The Outlaw Report, and has been republished with permission.

A new lawsuit filed against The Maryland Cannabis Administration threatens to delay the lottery after another separate lawsuit failed to get an injunction in February.

A previous lawsuit filed by Jeffery Jensen, a lawyer with a history of bringing social equity lawsuits against states, failed to get an injunction last month. Andrew Garrison, chief of the office of policy and government affairs at MCA, testified that the “[a]dministration anticipates that the cannabis license lottery will occur during or near the first week of March 2024.”

However, the lottery has not been launched this week, nor have qualified applicants entered in the lottery heard an update from MCA as of Mar. 5, 2024. MCA did not respond to request for comment about this new lawsuit.

A total of 1,708 applications were received by MCA’s deadline in December. 264 of those applications were for adult-use dispensaries.

Unlike the Jensen’s lawsuit which hinged on alleged unconstitutional denial of social equity status, this new lawsuit in Anne Arundel County accuses MCA of denying entry to a qualified social equity applicant due to computer system errors.

According to court documents filed mid-February, Kalil Traore, a 65% owner of KG Wellness #4 LLC, was not verified as a social equity candidate until 19 minutes before the application deadline on Dec. 12, 2023.

In lawsuit documents obtained by The Outlaw Report, her lawyers allege that the company contracted to complete social equity verifications refused to communicate with her via provided emails while Traore was traveling in Africa, significantly delaying her verification.

KG Wellness #4 is one of eight businesses under that name registered in early December. According to lawsuit documents, Traore and her investor, Shivana Persuad, seek to open a dispensary in Talbot County.

When Traore tried to upload the application to the MCA portal after verification, the deadline closed the portal before her application was uploaded. When MCA was contacted, Traore’s lawyers said that she was told that her application would not be accepted despite delays in verification and portal issues.

“Though MCA refused to extend the deadline, it has unilaterally extended the time for which it will be reviewing applications and holding the Lottery, originally set for on or before January 1, 2024,” the lawsuit alleges.

“We assert that pursuant to the Uniform Electronic Transaction Act, the application was legally received before the deadline and the application should be treated as such,” Stuart Cherry, her lawyer said in an email.

MCA has not responded to the lawsuit or the request for an injunction preventing the lottery from taking place. When MCA and the attorney general’s office were asked for comment, OAG’s press office responded in an email that they had no comment.

Traore and her lawyers seek for MCA to include Traore’s business in the upcoming lottery or a legal pause to the Talbot County lottery while the lawsuit is decided. Maryland’s lottery has now been delayed over two months while medical dispensaries who transitioned to adult-use in July 2023 continue to sell cannabis recreationally.

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Florida Medical Cannabis Operators Form Cannabis Trade Group

3/07/2024

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A group of medical cannabis operators in Florida has formed a cannabis trade association dedicated to promoting medical cannabis research and the “research and advancement” of medical cannabis, Health News Florida reports.

The Florida Medical Marijuana Trade Association (FMMTA) represents many of the state’s top medical cannabis companies including AYR Wellness, Curaleaf, Fluent, Green Thumb Industries, Surterra, The Cannabist Company, and Verano, the group said in a press release. The state’s largest medical cannabis operator, Trulieve — which is leading the state’s current adult-use legalization ballot campaign — is not an FMMTA member.

FMMTA’s executive director Shamarial Roberson, an epidemiologist, said the association’s goal “is really to foster a thriving medical marijuana industry.”

“There’s a need for a coordinated effort on medical marijuana to look for those options for research. Having a trade association really helps to push out the message to make sure education is there.” — Roberson, via The News Service of Florida

“Our members look forward to leveraging our deep collective experience on critical legislative and regulatory issues, including the proposed THC potency limits, in service of the state’s medical cannabis patients and operators,” FMMTA President Chris Ferguson, who is the current vice president at Verano, said in a statement.

The Florida Supreme Court is currently considering whether to allow a cannabis legalization question to appear on this year’s November ballot after the initiative was challenged by the attorney general. While the court has yet to make an official ruling, Florida Gov. Ron DeSantis (R) has predicted that voters will get to decide on the issue later this year.

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Hawaii's official state flag flying off the back end of a sailboat.

Hawaii Senate Passes Cannabis Legalization Bill

3/06/2024

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The Hawaii Senate voted 19-6 on Tuesday to legalize adult-use cannabis in the state, sending the proposal next to the House for consideration. The vote, first reported by Marijuana Moment, marks the second time in as many years that Hawaii senators have voted to legalize adult-use cannabis.

SB 3335 seeks to legalize the possession of up to one ounce of cannabis and up to five grams of cannabis concentrate products for adults aged 21; the legalization policy would take effect starting January 1, 2026. Additionally, the proposal would establish a regulated adult-use marketplace with a 14% excise tax rate on recreational products and a 4% tax rate on the medical cannabis market. Cannabis home grows would be allowed with a maximum of six plants, and up to 10 ounces of home-grown flower.

The bill closely resembles legislation brought last year by Attorney General Anne Lopez (D).

Nikos Leverenz of the Drug Policy Forum of Hawai’i and the Hawai’i Health and Harm Reduction Center praised lawmakers’ engagement with the issue despite objecting to the proposal’s focus on law enforcement issues.

“Although this is an imperfect bill that still contains far too many elements of criminalization, it’s welcome news to have a viable adult-use legalization bill that can be improved upon when it reaches the House.” — Leverenz, via Marijuana Moment

Last year’s cannabis legalization bill that passed the Senate ultimately failed in the House of Representatives, and SB 3335 could face a similar future.

Hawaii Gov. Josh Green (D) has signaled that he would be open to signing a legalization proposal if lawmakers delivered one to his desk, calling cannabis reforms a “big social issue” in the state, the report said.

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Former Jersey City Cops Sue After Being Fired for Legal Cannabis Use

3/06/2024

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Two former Jersey City police officers who were fired last year for consuming cannabis while off-duty are now suing the city over claims that officials refused an order by the state’s Civil Service Commission to have them reinstated, The Jersey Journal reports.

In the lawsuit filed last week, plaintiffs Norhan Mansour and Omar Polanco claim that Jersey City Mayor Steve Fulop (D) broke state law by having them fired, calling the city’s stance against off-duty cannabis use by cops “a ruse done solely to bring attention for [Fulop’s] gubernatorial campaign to the detriment of Jersey City employees as well as taxpayers who are now footing the bill of hundreds of thousands of dollars in backpay awards and attorney fees.”

The lawsuit seeks for both officers to be reinstated and for an unspecified amount to cover compensatory, consequential, and punitive damages, the report said.

It was established in 2022 by New Jersey Attorney General Matt Plakin that off-duty law enforcement officers could engage in cannabis use. But Jersey City’s public safety director last year challenged that policy, arguing police officers couldn’t be allowed to use cannabis even while off-duty because then they would not be allowed to possess firearms under federal law.

The latest lawsuit is the second time that Mansour and Polanco have sued the city over their firing; the first lawsuit, filed in November, claimed that officials did not fully comply with an Open Public Records Act request, the report said.

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Washington Approves Bill Allowing Conversion of Cannabis Waste Into Compost & Other Products

3/06/2024

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Washington lawmakers this week sent a proposal to Gov. Jay Inslee’s (D) desk that would allow cannabis operators to convert their green waste into commercial composts and other products, the Spokesman-Review reports.

Under the bill, cannabis operators in the state could turn the byproducts of commercial cannabis harvests including the plants’ stalks, stems, leaves, and roots into other commercial products including composts, hempcrete, and other fiber-based products. Any final products sold to the public would need to carry a THC concentration of less than 0.3%.

Current state law requires cannabis waste to be disposed of in landfills after being ground up with another material like kitty litter or sawdust, the report said.

“This doesn’t do our society any good to be continuing to fill landfills, especially when it’s being mixed with nonorganic garbage piling up or being put into plastic contractor bags before it’s dumped.” — Blue Roots Cannabis owner Seth Shamberg, via the Spokesman-Review

The proposal unanimously passed the Senate on Monday after being approved last month by House lawmakers in a 94-2 vote.

If signed into law, the move would be a somewhat rare legislative win for cannabis advocates in Washington state after a proposal to legalize cannabis home grows died in committee yet again this year.

Lawmakers passed a bill last year to protect job seekers in the state from being rejected for their off-the-clock cannabis use; that policy took effect on January 1.

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Dispensary Fined $26k for Selling Cannabis Products Pulled from Dumpster

3/04/2024

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Curio Wellness was recently fined $26,000 by the state of Maryland after regulators discovered that employees at the company’s Far & Dotter dispensary in Timonium had put more than 200 grams of pre-packaged cannabis into a dumpster, retrieved the products two days later, and eventually sold the products, the Baltimore Banner reports.

The placing of the products in the dumpster, the retrieval of the products, and the repackaging of the products from the dumpster were all captured on video surveillance. An employee who was interviewed by officials said they repackaged the products after finding a “liquid substance” from the dumpster on the products’ original packaging. 

Curio, which says it conducted an internal investigation of the incident, told the Baltimore Banner that it does not tolerate regulatory noncompliance. The company ALSO noted that the products in question were “inside sealed jars, within sealed boxes, and it is undisputed that no outside material ever breached the jars or touched the product.”

Regulators said in a consent order that the cannabis products’ dumping and subsequent retrieval — which took place in July 2023 — had only been discovered after the person working as the store’s inventory manager at the time reported the incident. The individual had been terminated from their position on August 20, 2023, and reported the incident on August 24, 2023, the report said.

According to the former inventory manager, he advised the shop to destroy the products but the store’s general manager decided to repackage and sell the products.

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Kansas Bill Would Reduce Hemp Cultivation Fees by More than Half

3/04/2024

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A bill proposed in Kansas would reduce licensing fees for hemp businesses from $1,200 to $500 which would reduce the barrier to entry for farmers to cultivate the crop, KSNW reports. State Rep. Tory Marie Blew (R), the bill’s co-sponsor in the House, told KSNW that “Lowering the barrier… is really gonna be appeasing to farmers to wanna get started and learn how to grow this crop and hopefully have more acreage in it in years to come.” 

State Rep. Webster Roth added that “At one point there were a large number of farmers wanting to farm this product, but the fees were so high that the licensure was high that they could not.” 

The measure passed the House 105-6 on February 14 and was referred to the Senate Committee on Agriculture and Natural Resources. The measure was opposed by Deputy Secretary of Agriculture Kelsey Olson who said that reducing the fee cap to $500 would require the agency to seek additional funding to cover an operating deficit in the future, according to supplemental notes on the proposal.  

Olson also expressed concerns regarding provisions of the bill that would allow for hemp in animal feed while State Fire Marshal Mark Engholm and Executive Officer of the Kansas Bureau of Investigation Robert Jacobs said they were worried about removing background checks and fingerprint requirements from the state law. All of those provisions were ultimately removed from the legislation.    

State Sen. John Doll (R) told KSNW that while there is support for the measure in the Senate, it’s likely to get leveraged to get other, more controversial, bills passed. 

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Vapor Cartridge Technology Addresses Rising Consumer Demand for Extracts

3/04/2024

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Stillwater, MN, March 2024 – A new patented design for vaporizer cartridges, developed by Vapor Cartridge Technology (VCT), is poised for introduction into the cannabis market. VCT represents a potential alternative to traditional vapor consumption methods, and aims to provide a more transparent and convenient option for businesses, regulators, and consumers.

Rising Demand for Extracts: In the current cannabis consumer landscape, there is a rising preference for extract products – specifically in vapor form. Consumers predominantly inhale vaporized cannabis extracts, typically by heating dried flower to produce a rich vapor, or by using vape pens to vaporize oil-filled cartridges. VCT provides an advanced alternative for inhaling these extracts.

Market Potential: The introduction of VCT is expected to engage both the medical and recreational cannabis sectors by offering an innovative consumption method. The technology’s precise dosing capabilities are designed to meet consumer demands for quality and consistency in their cannabis products, as well as to make vaporization a more precise consumption method for medical patients.

Regulatory Compliance: VCT is developed with an emphasis on regulatory compliance, featuring detailed product labeling that informs users about the dosage and chemical composition of their cannabis intake. This approach aims to support the needs of legal cannabis cultivators and processors, facilitating a transparent and regulated supply chain.

Looking Forward: The development of VCT marks a significant step towards innovation in cannabis consumption methods. As the technology progresses towards commercialization, it opens up new avenues for collaboration across the cannabis industry, from regulatory bodies and corporate entities to individual brands engaged in cultivation, manufacturing, distribution, and retail.

Statement from the founder:

“There are technical, business, and political challenges to successfully launch a new-to-the-world product. Start with the technical challenges. The first step is to build a lab prototype, which we’ve outlined how to do on our website.” – Tim McCullough, founder and inventor, VCT

Vapor Cartridge Technology is committed to advancing the cannabis industry through innovation. Interested parties are encouraged to visit the company’s website for further information about the technology and to explore opportunities for collaboration.

For more details, visit https://vaporcartridgetechnology.com.

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New Mexico Cannabis Industry Passes $1 Billion Sales Milestone

3/04/2024

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Cannabis retailers in New Mexico have sold just over $1 billion worth of cannabis products since the state’s adult-use legalization policy was enacted, according to data from the New Mexico Regulation and Licensing Department’s Cannabis Reporting Online Portal.

About two-thirds of the sales have been adult-use transactions with the remaining third going through the state’s medical cannabis program. Notably, the official sales tracker only covers legal cannabis sales since the New Mexico adult-use market launched in April 2022. The state did not previously track medical sales.

“This is a huge milestone for New Mexico’s cannabis industry,” said Regulation and Licensing Department Superintendent Clay Bailey in a Marijuana Moment report.

“Consumers have proven that they support this industry and the businesses that have worked hard to put our state on the map when it comes to legal, regulated cannabis sales.” — Bailey, via Marijuana Moment

December 2023 was the state’s top-selling month with $37,470,309 in adult-use sales. Medical cannabis sales meanwhile have steadily decreased since adult-use legalization took effect.

Gov. Michelle Lujan Grisham (D) signed a bill last week to strengthen industry regulations by cracking down on unlicensed and out-of-state cannabis products and closing a loophole that allowed some applicants to avoid the industry’s federal background check requirements, KRQE reports.

Adults in New Mexico aged 21 or older are allowed to grow up to six cannabis plants at home.

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Oregon Lawmakers Pass Bill to Re-Criminalize Drugs

3/04/2024

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Oregon’s historic drug decriminalization experiment is likely ending after state lawmakers sent a bill to re-criminalize drug possession to Gov. Tina Kotek (D) for her signature, Oregon Public Broadcasting reports.

The proposal is supported by lawmakers from both sides of the aisle — House lawmakers voted 51-7 in favor of the measure, and the Senate gave final approval on Friday in a 21-8 vote. Kotek has not said whether she supports the bill but has signaled she would be willing to roll back some of the state’s drug decriminalization initiative, Measure 110, which Oregon voters passed in 2020.

Specifically, House Bill 4002 would establish new criminal penalties including potential jail time for the possession of fentanyl, heroin, and meth. The measure does not seek to recriminalize cannabis, which is legal for medical and recreational use, and would not crack down on the state’s therapeutic psilocybin program.

Decriminalization advocates who oppose the measure are accusing Oregon lawmakers of overriding the will of voters and reinstating racist, drug war policies.

Oregon Senate Majority Leader Kate Lieber (D), who co-wrote the bill, claims the move will help “make sure Oregonians have access to the treatment and care that they need.” But Sen. Michael Dembrow (D) said that lawmakers were too hasty in passing the bill, suggesting that the re-criminalization policy could negatively impact the state’s “already strained courts system.”

“The fundamental flaw with Ballot Measure 110 was that it decriminalized first and only slowly funded, designed and implemented the needed treatment programs. In its current form, there are just too many question marks around its potential to be effective, and particularly to be implemented in a fair and nondiscriminatory manner, around the state.” — Dembrow, via OPB

The governor has until this Friday to decide whether she will sign the bill into law, veto it, or allow it to become law without her signature, the report said.

If Kotek were to veto the proposal, advocates for recriminalizing drugs in the state say they have started organizing a ballot measure that would seek to drastically roll back the decriminalization measure.

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Pew Research Center: Most Americans Live in County with at Least One Cannabis Dispensary

3/04/2024

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The majority of Americans – 79% – now live in a county with at least one cannabis dispensary, according to an analysis from Pew Research Center, with 74% living in a state where cannabis is legal for medical or adult use. According to Pew, 54% live in a state where adult-use cannabis is legal.    

The Pew analysis found nearly 15,000 cannabis dispensaries in the U.S. with California hosting about a quarter – 3,659 in all. Los Angeles County hosts 1,481 dispensaries, more than any other state other than California.  

Pew counted 1,405 dispensaries in Oklahoma – the most per capita of any state with 36 dispensaries for every 100,000 residents. Oklahoma has not legalized cannabis for adult use, but its medical cannabis program is one of the country’s most permissive.     

Pew also found that in states that have legalized cannabis for adult use that border states that still prohibit cannabis use by adults, dispensaries often cluster on the border of the state that has not passed the reforms. There are 64 dispensaries in New Mexico within 20 miles of its border with Texas, according to Pew. Overall, one in every five dispensaries in the U.S. is located within 20 miles of a state border and 29% of the border dispensaries adjoin a neighboring state with less permissive cannabis laws.  

The Pew analysis also found that in four states that have legalized cannabis for both adult and medical purposes – Colorado, Connecticut, Maryland and Virginia – median annual household incomes are at least $20,000 lower in areas with high dispensary concentrations than areas with low concentrations of dispensaries; while in New Hampshire and New York, by contrast, median household incomes are around $20,000 or more higher in areas with many dispensaries than in areas with few dispensaries. 

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Michigan Distributes $87M from Cannabis Taxes to 269 Municipalities

3/04/2024

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The Michigan Department of Treasury is distributing more than $87 million from cannabis tax revenues to 269 municipalities. The 99 cities, 30 villages, 69 townships, and 71 counties will receive more than $59,000 for every licensed cannabis retail store and microbusiness in its jurisdiction. 

In a statement, State Treasurer Rachael Eubanks said the municipalities can spend the funds to “fit their needs.” 

“This week, many Michigan municipalities and counties will begin seeing their share of adult-use marijuana payments appear in their banking accounts. Through a partnership, the dollars received from the adult-use marijuana taxes and fees are distributed to our participating communities.” — Eubanks in a press release 

The revenue was collected from the state’s 737 cannabis licensees during the 2023 fiscal year during which there was more than $290.3 million available from the Michigan Marihuana Regulation Fund. Another $101.6 million was sent to the state’s School Aid Fund for K-12 education and another $101.6 million to the Michigan Transportation Fund.  

Cannabis Regulatory Agency Executive Director Brian Hanna called the cannabis excise tax “a very important benefit of the legal cannabis industry in Michigan” and noted the agency is committed to doing its part in supporting cannabis licensees “so that they can continue to grow the local economy throughout the state with good-paying jobs and increased revenues for local government budgets.” 

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Ohio Cuts Cannabis Patient Fee to One Cent While New Jersey Offers Free Patient IDs

3/01/2024

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Medical cannabis patients in Ohio will soon only be charged a single cent to register for the state program, WCPO 9 News reports.

Regulators say they are working with a software company to eliminate the fee entirely but opted for a major cost reduction in the meantime. Previously, medical cannabis patients were charged $50 annually.

“The DCC understands that a one cent charge is not ideal; however, at this time the Division feels it is appropriate and necessary to provide this immediate financial relief for patients and caregivers in the short term while working toward a full fee elimination as soon as the updates to the registry can be made.” — DCC statement

Ohio isn’t the only state looking to reduce the financial strain on medical cannabis patients as cannabis regulators in New Jersey recently announced that starting in March, medical cannabis IDs will be available for free online. Registered patients — who were previously charged $10 to receive their physical cards — will be able to present their IDs using their phone or by printing them out.

“Our goal with this initiative is to improve accessibility and convenience for patients who require medical cannabis for their treatment,” Jeff Brown, executive director of the NJ-CRC, said in a press release. “By offering digital options, we make it more convenient for patients to receive the care they need.”

The cost reduction in Ohio follows the state’s successful legalization of adult-use cannabis last November. Despite pressure from the governor, however, retail sales have yet to commence.

Adult-use cannabis was legalized in New Jersey in 2021 and the state recently surpassed $2 billion in combined medical and recreational sales in the past five years.

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Thai Health Minister Predicts Recreational Cannabis Ban By December

3/01/2024

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Thailand’s health minister said that lawmakers are aiming to make adult-use cannabis illegal again by the end of the year, Reuters reports.

Under recently proposed legislation, it would be illegal to use cannabis recreationally but cannabis use for medicinal purposes would remain legal. People caught consuming cannabis would face fines of up to 60,000 baht ($1,700), and people caught illegally marketing or retailing cannabis products — or paraphernalia — would face up to a year in jail and fines up to 100,000 baht ($2,800).

“Without the law to regulate cannabis it will be misused,” Health Minister Cholnan Srikaew recently said. Cholnan also said that cannabis misuse “has a negative impact on Thai children,” and that “in the long run it could lead to other drugs.”

“In the new law, cannabis will be a controlled plant, so growing it would require permission. We will support [cannabis cultivation] for the medical and health industry.” — Cholnan, via Reuters

After lawmakers revealed their intent to crack down on Thailand’s booming cannabis industry, many cannabis company owners and other operators said they were preparing lawsuits to protect the industry.

Thailand was the first Southeast Asian country to enact significant cannabis reforms, legalizing medical cannabis in 2018 and then fully decriminalizing cannabis in 2022. The new reforms stopped short of actually regulating the country’s newest industry and the cannabis market value quickly ballooned in size and value, climbing to USD$800 million within six months.

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Virginia Lawmakers Approve Adult-Use Cannabis Sales Bill

2/29/2024

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Virginia lawmakers in the House and Senate passed identical bills on Wednesday seeking to establish a regulated adult-use cannabis market in the state, the Marijuana Moment reports.

Under the legislation, hopeful cannabis entrepreneurs can submit applications for cannabis cultivation, processing, retail, and testing operations starting September 1, with the legal market set to open for business in May 2025. Under the proposal, cannabis products would be taxed up to 11.625%.

Lawmakers had previously considered competing cannabis sales proposals but they compromised and consolidated the proposals, dropping provisions that would have reserved space in the adult-use industry for the state’s existing medical cannabis operators, some hemp companies, and equity-focused microbusinesses.

Del. Paul Krizek (D), co-sponsor of the House version of the bill, said the proposal would establish Virginia’s adult-use cannabis market in a “responsible and thoughtful way,” the Associated Press reported.

“And we’ve done so because it’s time to give Virginia’s $3 billion illicit market a run for its money. And it’s time to give Virginians access to a safe, tested and taxed product.” — Krizek, via the AP

Virginia Gov. Glenn Youngking (R) has historically disapproved of expanding cannabis reforms in the state and has not yet signaled whether he would sign or veto the proposal.

Virginia, which was the first southern U.S. state to legalize cannabis, adopted its legalization policy in 2021 but stopped short of establishing a regulated marketplace.

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Florida THC Caps Proposal Fails Ahead of Likely Legalization Vote

2/29/2024

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Florida lawmakers’ bid to install potency limits on the future sale of adult-use cannabis products has failed, according to a Florida Politics report.

Cannabis products remain prohibited in Florida outside of the state’s medical cannabis program but lawmakers were still considering installing THC caps ahead of a possible ballot initiative this November that seeks to legalize adult-use cannabis. The measure sought to cap cannabis flower products at 30% THC, cannabis concentrates and extracts at 60%, and cannabis edibles at 10 milligrams of THC per serving and 200 milligrams per package.

The proposal was advanced from the state’s House Healthcare Regulation Subcommittee earlier this month and was supported in the House but its Senate companion bill did not make it onto Senate Fiscal Policy Committee’s schedule. That committee met for the final time this session on Tuesday, effectively killing the bill — confirmed by House sponsor Rep. Ralph Massullo (R) — the report said.

Meanwhile, the Florida Supreme Court seems likely to allow the state’s cannabis ballot question to proceed despite protests from Attorney General Ashley Moody, who argued the initiative violates the state’s single-subject rule on ballot questions. Gov. Ron DeSantis (R) recently said that he expected the Supreme Court to allow the legalization question to appear before voters.

A December poll found that about 67% of Florida voters say they plan to vote ‘yes’ on the proposed cannabis legalization ballot question.

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Survey: 86% of Californians Favor Legal Cannabis Sources

2/28/2024

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According to survey data recently released by the California Department of Cannabis Control (DCC), 86% of Californians believe that it’s important to use legal sources when shopping for cannabis products. Officials also noted that 62% of Californians believe that Proposition 64 has had a positive impact, which means the legal cannabis market is now more popular than the state’s 2016 cannabis legalization ballot initiative (which was passed with 57% voter support).

The survey of more than 1,000 respondents also found that 72% of Californians believe that cannabis consumers have a responsibility to utilize the regulated market, DCC said in a press release.

The surveys were conducted under the DCC campaign “Real California Cannabis,” which seeks to educate consumers about the benefits of buying legal cannabis and how to identify the difference between licensed and unlicensed retailers, the release said.

“Education and enforcement are two of the key pillars that support a well-regulated cannabis market. The Real California Cannabis campaign will provide cannabis consumers with information that empowers them to make informed decisions regarding their cannabis purchases. These smart choices support safer communities, local businesses, and our continuous efforts to disrupt the illegal market.” — DCC Director Nicole Elliott, in a statement

The agency’s polling also found that 56% of Californians have consumed cannabis and that 88% of respondents who have consumed cannabis said they would buy products from the regulated industry. Additionally, 44% of respondents said it was easy to identify if a retailer was licensed by the state, while 42% said it was difficult, the release said.

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Oregon Cannabis Sales Continued to Decline In 2023

2/28/2024

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Legal cannabis sales in Oregon declined for the second year in a row in 2023 after the market set its annual sales record in 2021, the Oregonian reports.

Licensed cannabis retailers in Oregon recorded about $955 million in sales during 2023, down from about $994 million in 2022. The state’s cannabis market had previously spiked in 2020 with the onset of the COVID-19 pandemic, ultimately peaking in 2021 at $1.2 billion in annual cannabis sales.

Retail cannabis prices in the state have stagnated since falling to just $4 per gram in early 2023, the report said.

Oregon’s adult-use cannabis industry was launched in 2014 with no restrictions on the number of cannabis licenses allowed in the state; additionally, acquiring a commercial cannabis license was easier than in most other states. So, while the market grew fast at first, the mismatch in supply and demand eventually became evident as prices plummeted amid surging supply.

“Given these market conditions of oversupply, (retail) saturation, and stable consumer demand, low prices make it difficult for businesses to be profitable.” — The Oregon Office of Economic Analysis, via the Oregonian

The Cannabis Industry Alliance of Oregon last month urged the state to make permanent a moratorium on new cannabis licenses to help address the industry’s oversupply and market competition issues.

Lawmakers passed a law in 2019 allowing industry operators to export their cannabis products to other state-legal markets but the policy will only take effect if allowed at the federal level, and the federal government has yet to make significant cannabis reforms.

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