Rehmann Publishes 2023 Michigan Cannabis CFO Outlook Report

10/26/2023

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Troy, Mich., – October 26, 2023 – Fully integrated professional advisory firm Rehmann, a leader in providing accounting and consulting services to the cannabis industry, today published its 2023 Michigan Cannabis CFO Outlook Report in partnership with A&K Research, Inc. The second annual award-winning report features an in-depth study on the current state of the cannabis industry in the state of Michigan.

“We are excited to make this important data accessible and comprehensible to cannabis business leaders for a second year in a row,” said Chris Rosmarin, CPA and principal at Rehmann. “The 2023 report provides current and future cannabis entrepreneurs and finance professionals with a temperature check on the current state of the industry from a financial perspective as well as predictive snapshots of its future.”

Designed to provide cannabis licensees insight, the 2023 report highlights the latest concerns, trends, and challenges in Michigan’s cannabis industry, arming them with not only an inside look at the operational, tax, and M&A activities of their unnamed peers but also those peers’ plans and expectations for the future.
“As the Michigan cannabis industry continues to grow, many businesses do not have the proper guidance and thus struggle to manage their own growth,” said Erik Schumacher, CPA and principal at Rehmann. “We hope the report provides businesses with the clarity and information they need to make educated decisions and expand their businesses.”

“Taking into consideration the results and consistent increases in stats, it’s clear that the cannabis industry is stabilizing as compared to the prior year,” said Maher Faik, CPA and senior manager of finance and accounting solutions at Rehmann. “We are eager to continue providing our clients with compliance advice and adding value to their businesses as the industry continues to mature.”

To view the report, visit https://lp.rehmann.com/2023-michigan-cannabis-cfo-outlook.

About Rehmann

Empower Your Purpose
Rehmann is a professional advisory firm that provides accounting and assurance, business solutions and outsourcing, specialized consulting, and wealth management services. For over 80 years, Rehmann has provided forward-thinking solutions to our clients nationwide. With over 1,000 associates in Michigan, Ohio, and Florida, we are the momentum behind what’s possible. We focus on the business of business – allowing companies and individuals to focus on what makes them extraordinary. We help you look to the future with confidence, thanks to our unrivaled expertise and integrity. Through our partnerships with our clients and communities, we drive impact that empowers our world. Find us online at rehmann.com.

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Poll: Nearly 70% of Kansans Back Adult-Use Cannabis Legalization

10/26/2023

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Nearly 70% of Kansans support adult-use cannabis legalization, according to the Kansas Speaks survey conducted by Fort Hays State University. The survey found 67.2% backed the reforms with 16.9% opposed.  

The survey also found a majority – 63.6% – of respondents were “highly” or “somewhat” likely to vote for a candidate who supported medical cannabis legalization as they decided who to vote for to represent them in the state legislature; 14.8% said they would “unlikely” vote for a candidate who backed the reforms. 

Adult-use legalization was backed by a majority of Kansans of all ages, although narrowly, including 67.8% of those polled aged 18-34; 76.4% of those 45-44 years old; 67.3% of those 45-64; and 59.1% of those 65-and-older. A majority of Republicans (60%) also supported adult-use legalization in the state, along with 76.1% of independents, and 72.7% of Democrats.

In March, the state Senate tabled a medical cannabis legalization bill and the state remains one of just four where cannabis remains outlawed for any purpose. The reforms have the support of Democratic Gov. Laura Kelly who said she was “disappointed that some legislators are saying they don’t want to move forward with legalizing medical marijuana this year. She added that the decision to table the bill was lawmakers “effectively turning their backs on our veterans and those with chronic pain and seizure disorders.”

The House passed a medical cannabis bill in 2021, but the measure didn’t receive a committee vote in the Senate.

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Researchers Net $3.2M Federal Grant to Study How Cannabis Affects Patients Who Receive Immunotherapy

10/26/2023

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A University at Buffalo (UB) researcher has been awarded a $3.2 million National Cancer Institute grant to study how cannabis affects patients who receive immunotherapy. According to Rebecca Ashare, PhD, associate professor of psychology in the UB College of Arts and Sciences and the grant’s lead investigator, up to 40% of cancer patients report using cannabis for symptom management during and after immunotherapy treatments, but there isn’t much rigorous research investigating the efficacy of using cannabis for that purpose. 

“There are virtually no long-term studies evaluating its potential benefits and harms for persons treated with immunotherapy for cancer, despite cancer and its treatments being qualifying conditions in most of the 37 states and Washington, D.C., that have legalized adult use or medical cannabis. There are reports of benefits surrounding pain relief, improving mood and curbing sleep deprivation, but there is also evidence of physical, cognitive and mental harms, including cannabis use disorder.” — Ashare in a press release 

Nearly 44% of cancer patients with 20 different tumor types receive immunotherapy treatment; notably, a specific type involving immune checkpoint inhibitors (ICIs). Immune checkpoints are a normal part of the immune system that govern the immune response to prevent the destruction of healthy cells. 

“The demand for evidence is clear and this project represents an important first step in that process as both immunotherapy and cannabis use are becoming more widespread therapeutic options in oncology, accepted by many patients and physicians,” Ashare said in a statement. 

In general, ICIs have fewer side effects than chemotherapy, and patients can be on the treatment longer than chemotherapy, but cannabis has anti-inflammatory properties that can suppress immune function, which Ashare said is “usually a good thing, except when you want the immune system to be active in order to fight cancer; so there are concerns that cannabis might reduce the efficacy of immunotherapy.”

Thomas Jefferson University and Oregon Health and Science University will join UB in recruiting participants for the three-site, 12-month observational study to advance research regarding the benefits and harms of cannabis use over time among cancer patients treated with immunotherapy. Each site will begin recruiting 450 participants being treated for cancer with ICI immunotherapy – half of the participants will be cannabis consumers and the other half will be non-consumers. Participants are not randomized for the studies, and each will use their own cannabis products. The research team will assess benefits and harms through medical records, patient outcomes, and blood samples at six different times over a one-year period. 

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Canadian Pediatric Society Releases Position Statement and Recommendations for Medical Cannabis Therapy for Children

10/26/2023

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The Canadian Paediatric Society last week released a position statement on medical cannabis for children under 18 years old, offering recommendations for physicians working with pediatric patients. The statement lays out the efficacy of medical cannabis for a handful of medical conditions, including epilepsy, autism, neurological disorders, and cancer and palliative care. 

The statement notes that smoking is not recommended for pediatric patients for several reasons, “including unpredictable dosing and smoking-related respiratory hazards” and that most patients under 18 are usually given cannabinoid-containing oils. The paper adds that the use of edibles for pediatric patients is not recommended due to inconsistent cannabinoid distribution in the products.   

“There is a growing body of research, of variable quality evidence, suggesting benefit of medical cannabis for some conditions in some children. Medical cannabis should only be authorized in cases where the benefits clearly outweigh the risks.” — Canadian Paediatric Society, “Medical cannabis for children: Evidence and recommendations,” Oct. 19 2023 

The statement says that clinicians “should be willing and able to engage in open discussions about the potential benefits and risks of medical cannabis” and give families evidence-based and unbiased information; consider the age and diagnosis of the patient; start with “slow titration” in the administration of medical cannabis products; and seek up-to-date evidence on potential safety risks, including drug-to-drug interactions. 

The organization also advocates for more education for clinicians to help them understand how cannabinoids work.  

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Denver Passes Half-Billion-Dollar Mark for Cannabis Taxes and Industry Fees

10/25/2023

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The city of Denver, Colorado surpassed the half-billion mark for cannabis tax revenue and industry fees this summer, topping $501.5 million in August, Westword reports. The total includes all cannabis-derived tax revenues tracked by Excise & Licenses since 2010, which is when medical cannabis dispensaries began operating in the city.  

From 2010 to 2013, the city collected $26.2 million from a 3.62% tax on medical cannabis sales and business licensing fees. In 2014, when adult-use dispensaries began operating, the city collected $23.8 million through licensing fees and a 3.5% sales tax. In 2018, the city increased its tax to 5.5% to help fund local affordable housing programs and in 2021 the city saw its record-to-date for tax and fee collections with $72.9 million in revenue, the report says.    

According to an Excise & Licenses report earlier this year, outlined by Westword, the 2% increase on cannabis sales taxes for affordable housing provided nearly $38.8 million from late 2018 through 2022, which has helped pay for Denver Department of Housing Stability’s land acquisitions, unit development and production, housing assistance, and supportive housing services.  

In 2023, local cannabis tax revenues will fund $8 million in homelessness services, according to Excise & Licenses, and more than $8.7 million in affordable housing assistance and nearly $4.4 million in small-business investments, with more than $10 million for youth intervention, legal cannabis industry enforcement, regulator efforts, and public safety campaigns. 

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Survey: 65% of Canadian Cannabis Consumers Only Use Legal Sources

10/25/2023

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Five years after Canada legalized cannabis for adult use, 65% of consumers said they purchased only from legal sources, according to a survey from Pollara Strategic Insights. The firm found that the public continues to largely accept the reforms, with 52% expressing outright approval, 20% ambivalent, and 23% disapproving. 

Ther survey found that about 30% of Canadians believe legalization has resulted in increased crime, which Pollara said roughly matches expectations, but that about 10% believe it has caused a decrease. Another 70% said they feel like the number of stores selling adult-use cannabis has increased since its legalization, while 30% said they believed the number of illegal stores has increased. 

“Five years since legalization, over a quarter (27%) of Canadians report using cannabis in some form in the past 12 months – representing a 2-point increase from July 2022, a 9-point increase since March 2019, and a doubling of reported levels pre-legalization (+14 points). One-in-ten (11%) of all adult Canadians – including two-in-ten (21%) cannabis users – report having only used cannabis since legalization.” — Pollara Strategic Insights, “Legal cannabis in Canada: 5 years later,” Fall 2023 

Just 36% of Canadian cannabis consumers still tend to view prices in the legal market as higher than those in the informal market, while 17% said they were about the same. 

Only a quarter of those polled said cannabis legalization has had an overall negative impact on Canada or their province. 

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Connecticut City Settles Lawsuit With Former Cop Who Was Suspended for Using Medical Cannabis

10/25/2023

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The city of Bridgeport, Connecticut this week agreed to pay a settlement to a former police officer who said he was wrongly suspended for being a medical cannabis patient, CT Post reports. The settlement with Donald Bensey came as the case was set for a trial in Superior Court. 

The details of the settlement were not disclosed, and it still requires final approval from the City Council.  

In 2012, state lawmakers passed a bill prohibiting employers from firing employees who consumed cannabis and were enrolled in the state’s medical cannabis program; however, federal law outlaws the possession of firearms by cannabis consumers, which was required for Bensey in his role as a police officer. Bensey had worked for the Bridgeport police since 2006, and was promoted to sergeant in 2016, but had qualified for the medical cannabis program in 2016 following a post-traumatic stress disorder diagnosis, the report says.  

In 2016 and 2018, then-Police Chief Armando Perez issued a department-wide memo stating that, despite the medical cannabis law and 2012 law protecting medical cannabis patients, officers “are still prohibited from using or possessing marijuana and will be subject to discipline up to and including termination.” Bensey subsequently tested positive for cannabis during a random drug test and was suspended for 30 days and threatened with termination; he would later resign.  

In 2019, a federal judge tossed Bensey’s discrimination case, citing federal law.  

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Study: Psychedelic Users Had Better Mental Health Outcomes During Pandemic

10/24/2023

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A study published last month in the journal Scientific Reports suggests that individuals who use psychedelics tended to have better mental health outcomes during the coronavirus pandemic than non-users.   

The researchers concluded that “users of hallucinogenic drugs scored better on various dimensions that were clearly affected by the recent COVID-19 pandemic, like psychopathology, wellbeing, and post-traumatic growth. This was even clearer in the case of regular users of these drugs.”

“From these results, we can suggest that either these drugs exert certain effects on individuals that protect them against some of the distress of life-changing events, or people who use these drugs do so because they have traits that are related to the better management of stressful events. Overall, these findings have public policy implications that should be addressed. Further research should elucidate the role of hallucinogenic drugs in large-scale catastrophes, such as pandemics and wars.” — “Longitudinal and transcultural assessment of the relationship between hallucinogens, well-being, and post-traumatic growth during the COVID-19 pandemic,” Scientific Reports, Sept. 11, 2023 

For the study, researchers recruited a sample of 2,971 participants for the baseline assessment, with 1,024 participants at the first follow-up, two months later, and 455 participants at the last follow-up, which occurred six months after the baseline assessment. 

To gather the data, the team developed an online survey specifically designed for the study, which was available in Spanish, Portuguese, and English. The survey reached individuals from over 80 countries, due to snowball sampling and online dissemination through various channels, including social media, scientific journals, and community websites. 

Study author José Carlos Bouso, the scientific director for the International Center for Ethnobotanical Education, Research, and Service (ICEERS), told PsyPost that the survey was released to the general public and that researchers did not disclose that they were conducting research about psychedelics “to avoid biasing the answers.” The study employed well-established psychometric measures to assess various aspects of mental health and included questions about the use of psychedelic drugs, including MDMA, ayahuasca, psilocybin-containing mushrooms, LSD, peyote, and others.   

Those who used psychedelics experienced fewer symptoms across various mental health dimensions, including obsessions or compulsions, depression, hostility, phobic anxiety, paranoid ideation, and psychoticism, and the overall severity of psychological symptoms, as indicated by the General Severity Index, was also lower among the group. Hallucinogenic drug users were also less reliant on information from the media and politicians, which is noteworthy because excessive exposure to pandemic-related news and information has been linked to higher levels of distress. 

Bouso said that the study confirmed the researchers’ hypothesis: “participating in structured psychedelic sessions seems to help with the adaptive process in stressful situations and may thus be a protective factor for mental health.” 

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Oregon Cannabis Organizations Merge Into New Coalition Representing 500+ Members

10/24/2023

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The Oregon Cannabis Association and the Cannabis Industry Alliance of Oregon are merging after the boards of the organizations voted to approve the change last week, Oregon Public Broadcasting reports. The new organization is called the Cannabis Industry Alliance of Oregon and represents more than 500 members.  

The move comes as the state’s industry faces oversupply, limited demand, and record low prices, the report says. Hunter Neubauer, board member of the group, told OPB that the state’s cannabis industry has already experienced a pair of boom and bust cycles. A February report from the Oregon Liquor and Cannabis Commission (OLCC) had predicted a tumultuous year ahead for the nearly decade-old industry.   

“The overabundance of supply throughout 2021 and 2022 resulted in historically low wholesale and retail prices for both usable marijuana and concentrate/extract products. The declining prices, in combination with a tempering in the growth of quantities purchased, resulted in the first-ever decrease in annual sales (from $1.2 billion in 2021 to $994 million in 2022).” — OLCC, “2023 Recreational Marijuana Supply and Demand Legislative Report”  

The agency predicts that the low margins will continue unless the federal government “creates pathways to interstate commerce.”  

The Oregon Cannabis Association was formed in 2014, when voters approved adult-use cannabis legalization in the state. The Cannabis Industry Alliance was formed last year after the merger of three industry groups.  

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Texas University Awarded USDA Grant to Study Hemp as Animal Feed

10/24/2023

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Agricultural scientists at Texas’ Prairie View A&M University (PVAMU) have received a $299,162 grant from the United States Department of Agriculture’s (USDA) National Institute of Food and Agriculture (NIFA) to study the use of hemp as animal feed.   

The three-year study will be conducted by research scientists from the university’s Department of Agriculture, Nutrition and Human Ecology and will focus on the nutritional profile of industrial hemp plant biomass byproducts, and their impact on goats, to determine if hemp biomass can serve as a viable alternative feed that could reduce the use of grain in animal feed, which consumes about 36% of the world’s grain supply.  

The research will be led by Dr. Negusse Kidane, Ph.D., assistant professor and research scientist in the Department of Agriculture, Nutrition and Human Ecology, who said in a statement that the study will involve six multi-disciplinary scientists from PVAMU’s academic and research programs which he said, “demonstrates the team’s commitment to partnership and efficient use of resources.”  

“The project also fosters academic and industrial collaboration, such as with goat producers, hemp farmers, and hemp processing industries across Texas. Given the breadth and scope of the study, a collaborative approach is indispensable for the success of this proposed project, requiring synergistic efforts from scientists in multiple disciplines.” — Kidane in a press release  

Dr. Magesh Rajan, PVAMU vice president of research and innovation, added that the grant “represents a significant milestone” in the college’s “pursuit of innovative solutions for sustainable agriculture.”  

“By exploring the potential of hemp as an alternative to traditional grain in animal feed, our researcher will spearhead groundbreaking research that not only addresses pressing environmental challenges but also contributes to the advancement of animal nutrition,” Rajan said in a statement. 

The proposal is titled proposal titled “Evaluating the Nutritional Profile of Industrial Hemp Farm-Byproducts and Extraction Residues as Alternative Feed Resources for Goats.” The funds were awarded through the USDA’s Capacity Building Grants program. 

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Michigan Appeals Court: Illegal Cannabis Grows are Misdemeanor Crimes Regardless of Size

10/23/2023

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The Michigan Court of Appeals earlier this month ruled that illegal cannabis grows of any size are misdemeanor crimes under the state’s voter-approved adult-use cannabis laws, MLive reports. Under the ruling, defendants convicted since 2018 under the now outdated 1978 may have the grounds to fight those convictions, according to the report.

More than 3,500 people have been charged since 2018 under the previous law, with 1,072 convicted. Under the 1978 law, people convicted for growing cannabis illegally can face up to 15 years in prison for possessing more than 99 pounds of cannabis or 200 plants. Under the 2018 statute, those crimes are considered misdemeanors, punishable by up to 93 days in jail.

The decision stems from an August 2020 raid in Tuscola County, during which officers uncovered 1,156 cannabis plants on the property of Shaaln Kejbou, the report says. Tuscola County prosecutors charged Kejbou with two felonies under the 1978 law and based on those felony charges, prosecutors also charged Kejbou with possessing a firearm during the commission of a felony. A Tuscola County Circuit judge dismissed the cannabis and firearm crimes, ruling the old cannabis plant-count laws are obsolete, which the Tuscola County Prosecutor’s Office appealed.

In the joint Court of Appeals opinion, judges Michelle M. Rick and Kirsten Frank Kelly concluded that the 2018 law was enacted to “prevent situations” like Kejbou’s, namely “a felony conviction for an unlicensed marijuana grow operation.”

“We acknowledge this outcome may be viewed unjust by those businesses that legitimately operate within the parameters of the (law),” the judges wrote. “The remedy, however, lies within the sole responsibility of the Legislature.”

Because the law was approved by voters, any changes require a three-fourths supermajority.

Robin Schneider, who helped write the legalization law and now leads the Michigan Cannabis Industry Association, told MLive that she hasn’t heard any of the organization’s members complain about the decision and that “the law is working exactly as intended.”

“I think all of our members share the belief that they don’t want to see anyone incarcerated for a cannabis crime,” she said.

State police spokeswoman Shanon Banner told MLive that the court ruling won’t impact state police Tobacco and Marijuana Section operations.

“We have reviewed the ruling and because it deals with the level of the penalty and doesn’t change what is legal or illegal under the law, we don’t expect it will have a major impact on our enforcement operations,” she said.

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Rhode Island Adult-Use Cannabis Sales Hit Monthly High of $7.11M in September

10/23/2023

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Adult-use cannabis sales in Rhode Island reached a new monthly sales record in September, totaling $7.11 million, NBC 10 News reports. Adult-use sales totals are now back on track to meet the state’s annual revenue projections of $76 million for fiscal year 2023 after a slow start earlier in the year. 

When the adult-use cannabis market launched in the state in December 2022, the state had imposed an advertising ban on cannabis dispensaries; however, that ban was lifted in June and led to an 11% increase in adult-use cannabis sales that month, the report says.  

Cannabis Control Commission Chair Kim Ahern told NBC 10 News that while she believes allowing advertising is playing a role in the sales increase, she also attributes the growth to “getting the general message out” about a safe and regulated market. 

Rhode Island regulators have yet to award 24 retail licenses and once those licenses are active, officials expect sales will increase. In all, the state will allow a total of 33 adult-use cannabis licensees, which both officials and business owners hope will prevent the industry oversaturation that’s occurred in neighboring Massachusetts. Officials plan to begin issuing those licenses next year.  

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Detroit Officials Close Psychedelic Church Raided in September

10/23/2023

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Detroit, Michigan officials last week closed the building that formerly housed the psychedelic religious institution Soul Tribes International Ministries, the Detroit Free Press reports. The church, which offered psilocybin mushrooms as a sacrament, was raided by police in September. 

Detroit Councilman James Tate shared an image of the padlocked door and a Notice of Building Closure dated October 18 on Facebook and thanked officials for helping to protect the neighborhood.   

Shaman Boby Shu told the Free Press that the move is a “total violation” of the church’s First Amendment rights and is “religious discrimination” and “religious redlining.” Following the September raid, Shu said police seized more than $700,000 in psilocybin mushrooms intended for therapeutic use and ordered the church’s closure.

Detroit voters in 2022 passed Proposal E, which decriminalized possession and therapeutic use of entheogenic plants and fungi but Mayor Mike Duggan’s office has indicated that “It is the law department’s position that this local ordinance, despite its intent, does not override state law, which considers psilocybin to be a controlled substance” and that “the city ordinance itself does not allow for the sale or distribution of psilocybin.”

Shu told the Free Press that he will continue to push to reopen the church.  

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FBI Data: Cannabis-Related Arrests in U.S. Increased in 2022

10/20/2023

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Law enforcement officers in the U.S. made at least 227,108 arrests for cannabis violations in 2022, up from the 219,489 cannabis-related arrests the previous year, according to Federal Bureau of Investigation (FBI) data. Of the 2022 arrests, 92% were for possession only. 

The figures are likely underestimated, because for 2022 83% of agencies reported their arrest data, according to NORML. That figure is up from 63% of agencies in 2021 and represents 75% of the total U.S. population. In a statement, NORML Deputy Director Paul Armentano said that “While there has clearly been a long-term decline in the total number of marijuana-related arrests nationwide, it is discouraging that there still remains significant gaps in the available information.” 

“At a time when voters and their elected officials nationwide are re-evaluating state and federal marijuana policies, it is inconceivable that government agencies are unable to produce more explicit data on the estimated costs and scope of marijuana prohibition in America. Nonetheless, even from this incomplete data set, it remains clear that marijuana seizures and prosecutions remain a primary driver of drug war enforcement in the United States. Hundreds of thousands of Americans continue to be arrested annually for these violations even though a majority of voters no longer believe that the responsible use of marijuana by adults should be a crime.” — Armentano in a statement 

In all, 30% of all reported drug-related arrests in the U.S. in 2022 were for cannabis. 

From 2019 to 2020 cannabis-related arrests had fallen 36% but in 2020 more than 350,000 people were arrested for cannabis in the U.S., according to FBI data.   

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Two Michigan Lobbyists Sentenced to Federal Prison for Bribing Former Cannabis Licensing Board Chair

10/20/2023

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Two Michigan lobbyists on Wednesday were sentenced to federal prison terms for their role in paying bribes to Rick Johnson, the former chair of the Michigan Marijuana Licensing Board. Brian Pierce was sentenced to 24 months in prison, along with two years of supervised release and a $25,000 fine, while Vincent Brown was sentenced to 20 months in prison, with two years of supervised release and a $25,000 fine.  

In a statement, U.S. Attorney Mark Totten said the duo “deliberately bribed Rick Johnson for their own personal gain.” 

“As I’ve said before, public corruption is a poison to our democracy and shatters the people’s trust in public officials. My office will hold offenders accountable – whomever, whenever, and wherever we find corruption and blatant disregard for the rule of law.” — Totten in a press release 

Pierce and Brown worked as lobbyists in Lansing and did business together as Philip Alan Brown Consulting, LLC and Michigan Grower’s Consultants, LLC and lobbied on behalf of various businesses seeking operating licenses from the licensing board. The pair admitted paying Johnson a total of $40,000 between June 2017 to November 2018 when Johnson was chair of the board, the U.S. Attorney’s Office for the Western District of Michigan said in a press release. At Johnson’s request, Pierce paid a total of $2,000 to a Detroit exotic dancer who was having commercial sex with Johnson. Those payments were made to influence and reward Johnson in connection with his official duties on the board, including receiving his assistance for their clients who applied for licenses to operate in the cannabis industry.  

Last month, Johnson, a Republican who previously served as Speaker of the Michigan House of Representatives, was sentenced to nearly five years in prison for accepting the bribes. In all, Johnson said he accepted a total of at least $110,000 in bribes. During his sentencing, Johnson told the judge he was a “corrupt politician.”  

Michigan businessman John Dalaly was also sentenced last month to more than two years in prison after admitting to paying Johnson at least $68,200 in cash and other benefits, including two private flights to Canada and hiring Johnson’s wife, who helped him fill out forms that would end up in front of the state Medical Marijuana Licensing Board, as a consultant for $4,000 a month.    

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Cannabis Union Partners With Machinists and Aerospace Workers to Promote ‘Sustainable and Responsible’ Industry

10/20/2023

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The Maine Cannabis Union is partnering with the International Association of Machinists and Aerospace Workers (IAM) to impact cannabis-related legislation and promote a sustainable and responsible cannabis industry. The Maine Cannabis Union also announced that it would accept adult-use cannabis business owners into its union after previously only accepting medical cannabis operators.

In a statement, IAM Eastern Territory General Vice President David Sullivan said the alliance “will elevate” the groups’ “collective voice in the corridors of power from Augusta to Washington, D.C.”

“Our mission is to chart a course for a sustainable and responsible industry, not just in Maine but across the nation.” — Sullivan in a press release 

The IAM said that the Cannabis Union’s decision to begin accepting adult-use operators as members “signals their commitment to embracing all sectors of the cannabis market.”

“By doing so, they aim to create a more comprehensive and inclusive community of professionals,” IAM said, “all working together to further the interests of the Maine cannabis industry.”

The groups came together at a recent Cannabis Union-hosted event in Sanford which IAM Eastern Territory Special Representative Tiwaan Bradley described as “a testament to our theme of harmony, unity, and community, which allowed us to bring together new members and industry stakeholders, all driven by a common goal.”

“By expanding our embrace to adult-use store owners and uniting for growth,” Bradley said, “we are well-positioned to navigate challenges and seize opportunities.”

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Jersey City Sues State Over Policy Allowing Police to Use Cannabis Off-Duty

10/19/2023

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The Jersey City, New Jersey public safety director on Monday filed a lawsuit against the state in federal court for its move to allow police to consume cannabis while off duty, the New Jersey Monitor reports. In April, New Jersey Attorney General Matt Platkin issued a memo saying that it is acceptable for police in the state to use cannabis off-the-clock, but noted in the memo that “there should be zero tolerance for cannabis use, possession, or intoxication while performing the duties of a law enforcement officer” and “zero tolerance for unregulated marijuana consumption by officers at any time, on or off duty.”

In the lawsuit filed by Jersey City Public Safety Director James Shea on behalf of the city, Shea argues that because federal law prohibits anyone who uses a federally controlled substance from possessing a firearm, Jersey City cannot employ police officers who consume cannabis. The lawsuit names Platkin as a defendant.

The lawsuit contends that “police officers in New Jersey are required to possess and receive firearms in order to fulfill their duties as law enforcement officers” and when lawmakers passed the cannabis legalization law they “failed to address the impact of the federal firearm laws on the use of regulated marijuana/cannabis in New Jersey for persons who are required to possess and/or receive firearms or ammunitions as part of the job duties, including police officers in Jersey City.” 

“Every citizen in the state of New Jersey has the right to use marijuana. If one of our officers wants to do that, they could smoke as much as they want – they can no longer perform the duties of a police officer, and we will have to terminate them if we become aware.” — Shea via New Jersey Monitor 

The lawsuit comes two months after the state Civil Service Commission determined that Jersey City must rehire a police officer it had fired after she failed a drug test for cannabis, the report says. The commission based its decision on the state’s legalization law which prohibits employers from firing someone who consumes cannabis off-the-clock. At least three other officers fired for the same reason have also challenged the terminations and are named as defendants in the lawsuit. 

Shea said the commission is “refusing to acknowledge the conflict between the federal law and the state law” and that the legalization law violates the supremacy clause of the U.S. Constitution, which bars states from overriding federal statutes.  

“We all agree that they smoked, they utilized marijuana, cannabis, or THC. We all agree that they would need to carry a firearm to be police officers,” he told reporters. “So it should be as simple as a judge clarifying the supremacy clause.” 

The lawsuit also names the Civil Service Commission as a defendant and seeks to prevent the body from requiring the city to “employ or reinstate to employment any individual who is an unlawful user of any controlled substance, including marijuana/cannabis where such person is required to possess and/or receive a firearm or ammunition as part of his or her job duties.” 

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Republican Lawmakers in Ohio Approve Resolution Opposing Cannabis Legalization

10/19/2023

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Republican lawmakers in Ohio last week approved a resolution opposing the cannabis legalization question that will be put to voters in the state next month and urging citizens to vote ‘no’ on the proposal.  

The resolution contends that “the commercial marijuana industry” paid to write the statute and then “paid to collect the signatures to get the proposed law.” It also ties the state 33,000 overdose deaths between 2011 and 2020 to cannabis by linking them to the debunked “gateway” drug theory and claiming regular cannabis use “more than doubles the risk of developing opioid-use disorder or initiating nonmedical prescription opioid use,” despite evidence that several studies have found cannabis plays a role as an exit drug for some people who quit opioid use. 

“We, the members of the Senate of the State of Ohio, conclude that the proposed statute authored by the commercial marijuana industry does not serve the best interests of the people of Ohio, will bring unacceptable threats and risks to the health of all Ohioans, especially children, will create dangers in the workplace and unacceptable challenges and costs to employers, will make Ohio’s roads more dangerous, will impose significant new, unfunded costs to Ohio’s public social services, and serves only to advance the financial interests of the commercial marijuana industry and its investors.” — SR 216 text   

The resolution says by voting ‘no’ on the reforms, voters would be preserving and protecting the “state’s high quality of life,” health and safety of its citizens, strength and prosperity of its communities, strong economic growth, favorable environment for business success, and “opportunity for all citizens and the future for our young people.”  

The reforms are also opposed by Republican Gov. Mike DeWine and the Ohio Association of Health Commissioners; however, a September poll by Fallon Research found 59% of Ohioans back the proposal with 32% opposed and 9% unsure.  

None of the Senate’s Democratic lawmakers signed onto the resolution.    

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Tilray Announces Sustainable Packaging Transition For Good Supply Brand In Canada

10/19/2023

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Tilray Brands, Inc. on Tuesday announced a hemp packaging transition across its Good Supply brand in Canada. The company said it is overhauling the packaging and componentry of flower bags, pre-rolls, and vape tubes and mouthpieces of the Good Supply brand to minimize the amount of single plastic used in production. 

In a press release, Tilray outlined its research with Suzy Insights which found consumers are 50% more likely to purchase a cannabis product that comes in sustainable packaging versus one that doesn’t. 

“Listening to consumers’ feedback and concerns, the mission around sustainability meets the needs of more eco-conscious, and frequent cannabis consumers, sharing active awareness of increased waste production in the industry.” — Tilray in a press release 

The company added that the program would help divert more than 288,800 pounds of plastic from landfills annually, based on Good Supply sales volumes as of June 2023. Tilray has also partnered with PrintReleaf to reforest more than 2000 trees as of August 2023, from label usage, to offset more than 150,000 pounds worth of paper consumption. 

Tilray indicated it plans to roll out its new packaging for its Canadian brands, including RIFF and Broken Coast.  

The effort is part of Tilray’s new “Green You Can Feel Good About” campaign. 

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Harvard Creating Study of Psychedelics in Society and Culture

10/18/2023

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Harvard University is creating a Study of Psychedelics in Society and Culture — an interdisciplinary effort across the Faculty of Arts and Sciences, Harvard Law School, and Harvard Divinity School — which aims to “transform the psychedelics research landscape by producing cutting-edge scholarship and convening faculty, students, and experts to engage in discussion around their far-reaching implications.”   

In a statement announcing the program, Robin Kelsey, Shirley Carter Burden Professor of Photography and dean of arts and humanities, said the university “is uniquely poised to become the most exciting place to debate, discuss, and innovate in this area.” 

The effort will be funded with a $16 million gift from the Gracias Family Foundation. Antonio Gracias, president of the foundation and the founder, chief executive officer, and chief investment officer of Valor Equity Partners, said in a statement, that “Harvard is the ideal place to explore the topic of psychedelics from new angles and to craft a framework for their legal, safe, and appropriate impact on society.” 

In a statement, Michael Pollan, professor of the practice in Harvard’s Creative Writing program and Lewis K. Chan Arts Lecturer, described the gift as “visionary… in that it is the first to take the so-called psychedelic renaissance beyond medicine, by recognizing the importance of the humanities in exploring the impact and potential of these remarkable substances.” 

Bruno Carvalho, interim director of the Mahindra Humanities Center, said in a statement that the initiative will give researchers “the space to explore and enrich public dialogue around psychedelics, including their potentials, as well as ethical and social implications.” 

In 2021, the Petrie-Flom Center for Health Law Policy, Biotechnology, and Bioethics at Harvard Law School established its Project on Psychedelics Law and Regulation to examine the ethical, legal, and social implications of psychedelics in research, commerce, and therapeutics. Additionally, the Center for the Study of World Religions at Harvard Divinity School examines psychedelics as they relate to altered states of consciousness, the relationship of mind and matter, and the global history of spirituality and religion. 

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Minnesota Cannabis Company Gets $10M State Loan to Turn Former Lumber Mill Into Cultivation Site

10/18/2023

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A Minnesota economic development agency on Tuesday approved a $10 million loan for a Missouri-based cannabis company planning to build an indoor cultivation operation in a former lumber mill in Grand Rapids that has sat vacant for the past 15 years, MPR News reports. The company, HWY35, said the site will create 400 jobs over two phases of construction that will average $24 an hour, with annual salaries ranging from $40,000 to $160,000. 

Financing for the project also calls for a $10 million loan from the Minnesota Department of Employment & Economic Development and $2 million in tax increment financing from Grand Rapids. 

In a statement, Rob Mattei, community development director for the city of Grand Rapids, said the project will “further diversify” the city’s manufacturing base, “fully utilize the public’s past and present investments in infrastructure and substantially contribute to the growth” of the regional economy. 

Ida Rukavina, commissioner of Iron Range Resources and Rehabilitation (IRRR), the development agency that approved the $10 million loan, told MPR that the project helps achieve the agency’s goal of diversifying the regional economy away from mining and timber. 

“We know that not everyone may agree with this type of industry. But it is now legal in the state of Minnesota. This type of manufacturing, if it doesn’t happen here, it is going to happen somewhere else in our state.” — Rukavina to MPR 

Mathew Sjoberg, IRRR director of business development for Iron Range Resources and Rehabilitation (IRRR), added that HWY35 hopes to have licenses secured by the middle of next year and be in operation by the end of next year.  

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Advocates In Lubbock, Texas Submit Signatures for Cannabis Decriminalization Ordinance

10/18/2023

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Advocates in Lubbock, Texas on Tuesday submitted their petition to decriminalize possession of small amounts of cannabis in the city after collecting more than twice the number of signatures required to force city lawmakers to vote on the proposal, the Lubbock Avalanche-Journal reports. Freedom Act Lubbock submitted 10,540 signatures to the city secretary’s office, exceeding the 4,800 signature requirement. 

The city secretary’s office still needs to verify the signatures are valid before the issue moves to the City Council. The ordinance aims to decriminalize the possession of less than 4 ounces of cannabis and cannabis-related paraphernalia within the Lubbock city limits and prevent law enforcement officers from using cannabis odor alone as probable cause for a search.  

If the City Council rejects the ordinance, the Freedom Act committee has the option to request a citywide election to determine whether to codify the ordinance. Adam Hernandez, communications chair for Lubbock Compact, told reporters on Tuesday that he expects the council will send the issue to voters.  

“It was not an easy task by any means, and hundreds of hours were spent planning and building out the strategy before we even collected our first signature. This not only shows the popularity of this initiative, but this incredible feat shows what’s possible when Lubbock citizens from every community get involved in the democratic process. But this is only the first part.” — Hernandez via the Avalanche-Journal 

Hernandez added that in six other cities in Texas that have passed similar reforms, the issue has gone to voters rather than adopted by the city councils.  

According to Hernandez, there are about 600 cannabis-related arrests per year in Lubbock. A similar ordinance approved in Killeen in 2022 led to the release of 146 of 188 people who came in contact with police for cannabis possession from November 9, 2022, through February 28, 2023. 

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Study: Cannabis Consumers See Reduced COVID Mortality & Better Outcomes Than Non-Consumers

10/17/2023

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Cannabis consumers who contracted COVID-19 had reduced mortality and better outcomes compared to non-consumers, according to a study published this month in the CHEST Journal. The study, using the National Inpatient Sample Database, suggests “the beneficial effect of marijuana use may be attributed to its potential to inhibit viral entry into cells and prevent the release of proinflammatory cytokines, thus mitigating cytokine release syndrome.”  

According to the study, titled “Exploring the Relationship Between Marijuana Smoking and Covid-19 Outcomes,” cannabis consumers that had contacted Covid-19 had significantly lower rates of intubation (6.8% vs 12%), acute respiratory distress syndrome, (2.1% vs 6%), acute respiratory failure (25% vs 52.9%), severe sepsis with multiorgan failure (5.8% vs 12%), lower in-hospital cardiac arrest (1.2% vs 2.7%), and mortality (2.9% vs 13.5%).  

Out of 322,214 patients included in the study, 2,603 were cannabis consumers, which were described as younger and with a higher prevalence of tobacco use; however other comorbidities including obstructive sleep apnea, obesity, hypertension, and diabetes mellitus were more prevalent in individuals who did not consumer cannabis. 

A study published in August came to a similar conclusion, finding active cannabis consumers diagnosed with COVID-19 had better clinical outcomes than non-cannabis consumers, including the decreased need for ICU admission or mechanical ventilation. However, that study included just two hospitals in the Los Angeles, California area and included just 1,831 covid patients. Among those, just 69 reported active cannabis use, representing 4% of the total patients.  

A study published in May demonstrated that the cannabinoids could lower the production of two proteins – angiotensin-converting enzyme II (ACE2) and the serine protease TMPRSS2 – which are commonly hacked by the coronavirus to create a new infection. 

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Utah Startup Applies to Sell Cannabis DUI Insurance in Oregon

10/17/2023

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Utah-based startup reepher has applied to sell insurance in Oregon which would cover the cost of defending a cannabis DUI, Axios reports. The cheapest reepher product offered costs $15 monthly and offers $15,000 in potential coverage, including up to $8,000 in attorney fees and $1,500 to recover a towed vehicle.  

The company launched in late 2021 and currently operates in Arkansas, Georgia, Missouri, New Hampshire, and South Carolina, according to the reepher website. 

CEO Justin Kahn told Axios that, to date, the company has signed up less than 1,000 customers but has raised $1.2 million in investments. 

“There needs to be a new type of coverage that protects people from the financial consequences of their own behaviors, which are not illegal. But if you end up on the wrong side of the risk it can be a costly endeavor.” — Kahn to Axios 

Tom Baker, an insurance law expert at the University of Pennsylvania Law School, told Axios that while it’s “unusual” to offer insurance “for conduct that would be regarded as criminal,” reepher’s products seem similar to “peace of mind insurance” that’s offered for identity theft or for trip cancellation. 

According to Oregon crime statistics, over the past two and a half years, law enforcement in the state made 210 cannabis-related driving under the influence citations and 64 disorderly conduct citations.  

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