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Florida Supreme Court to Hear Arguments on Cannabis Legalization Initiative Next Month

10/05/2023

The Florida Supreme Court has scheduled for November 8 oral arguments on the proposed ballot initiative to legalize cannabis for adult use, WFLA reports. The challenge to the proposal is led by state Attorney General Ashley Moody who claims the measure “misleads” voters to benefit Trulieve, the state’s largest medical cannabis company.

According to the ballot question’s summary, the measure would allow “adults 21 years or older to possess, purchase, or use marijuana products and marijuana accessories for non-medical personal consumption.” However, Moody argues the proposal, if passed, “would not actually allow anything,” because cannabis possession is illegal under federal law.

Smart and Safe Florida, the sponsor of the petition, argues that Moody’s arguments are a “thinly veiled policy agenda.”

In oral arguments for the ballot initiative, each side will have 20 minutes to state their case before the Florida Supreme Court. The petition has garnered over 1,033,000 valid signatures from across the state. Adult-use cannabis initiatives had made it onto statewide ballots in 2014 and 2016 but neither surpassed the 60% threshold required for constitutional amendments. The Florida Supreme Court rejected a recreational marijuana initiative in 2021 on the grounds that the ballot summary did not address its contradiction with federal law.

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Minnesota County Considering Operating Cannabis Dispensary

10/05/2023

Officials in Cook County, Minnesota are considering operating a municipal cannabis dispensary, WTIP reports. The county currently runs a liquor store in Grand Marais and the arrangement for the dispensary would be similar.

County Administrator James Joerke told WTIP that officials are interested in a county-run dispensary “because it would create a new revenue stream for county government” that could potentially be used to offset the county levy.

Were the county to open a dispensary, they would purchase the cannabis products from a non-county entity, most likely a grower unaffiliated with any form of local government. Commissioner Dave Mills compared the scenario to that of the liquor store in Grand Marais – in that the city does not distill its own liquor, but buys it from someone else and then sells it.

To curb federal law, Mills suggested that the Cook County Economic Development Authority (EDA) could be the organization that actually has claim to the dispensary. However, he said that the EDA Board of Directors did not have “a whole lot of comfort” about the plan.

According to Minnesota Department of Revenue data outlined by WTIP, the state received nearly $600,000 in sales tax alone through August 21. According to Revenue Department data, the sales tax is projected to provide $15.4 million in additional funding to the state’s General Fund in Fiscal Year 2024, $50 million in 2025, and $84 million and in 2026.

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Michigan Bill Would Allow Students to Use Medical Cannabis at School

10/05/2023

A bill introduced in Michigan seeks to allow students to use medical cannabis at school, CBS News reports. It is the second time the measure, known as Jayden’s Law, has been introduced in the state and supporters say it would allow students to take their medicine without interrupting academic time.

State Rep. Jimmie Wilson Jr. (D), one of the bill’s sponsors, told CBS News that the proposal allows medical cannabis pediatric patients to have their medication in the schools the same way anyone else has their medications stored.”

“The same way, whether it be in a nurse’s office or an administration office, they would go up and access their medication the same way anyone else would, and they would go back to class.” — Wilson Jr. to CBS News

Under current state law, students must be checked out of school and taken at least 1,000 feet from the building to take their medicine and then be checked back into school.

State Sen. Dylan Wegela (D) told CBS News that the bill’s passage “would simply make their day more cohesive.”

“It is an inconvenience for students who take this medicine,” he said. “Most of those students who have autism or have chronic pain or epilepsy have to take time out of the school day, miss instructional hours and go off campus to take medicine, and then come back.”

The proposal does not allow smokeable forms of cannabis to be administered on school grounds. Students would be able to access products like tinctures and pills. The measure also allows schools to opt out if the federal government challenged the regulations.

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VCT Announces New Proprietary Delivery Method for Cannabis Vaporization Which Aims to Eliminate Risks Associated with Unregulated Counterfeits

10/04/2023

Vapor Cartridge Technology (VCT) is proud to introduce a groundbreaking solution to address the pressing concerns surrounding vape cartridges in the cannabis market. With a commitment to ensuring the safety and quality of cannabis consumption, VCT presents a new proprietary delivery method that stands to revolutionize the industry.

The Current Cannabis Landscape

In today’s cannabis landscape, the demand for cannabis extracts is skyrocketing. Vaporization has become a preferred method of consumption due to its quick onset of effects and high bioavailability, making vape pens one of the most popular delivery methods among US consumers. However, the extraction of THC and CBD oils, achieved through methods such as Super Critical CO2 and hydrocarbon extraction, often involves the use of diluting agents to optimize their functionality in vape cartridges. These diluting agents have been associated with health concerns stemming from vape usage. Additionally, the ease of counterfeiting existing vape pens and the presence of unregulated manufacturers pose significant risks to consumers.

Summary of New Technology

Vapor Cartridge Technology (VCT) is proud to introduce its innovative solution to these challenges. VCT’s approach is revolutionary in several key aspects:

Product Purity: VCT’s delivery method utilizes no diluting agents or additive oils, resulting in clean and precise vapor.
Patented Thermal Distillation Process: VCT employs a patented “Thermal Distillation Process,” a “whole plant” extraction method that extracts all 150+ cannabinoids, terpenes, trace flavonoids, carotenoids, and chlorophylls from cannabis.
Conductive Aluminum Substrate: Botanical extracts are accumulated on a conductive aluminum substrate, which can be easily “rolled” into a cartridge cylinder for implementation in a vaporizer.
Low Temperature Vaporization: VCT’s process ensures that only the botanical compounds are inhaled, minimizing any potential risks associated with inhaling harmful substances.
No Chemical Solvents: The Thermal Distillation process uses no chemical solvents, ensuring a safe and pure vaping experience. Additionally, the aluminum cartridges are recyclable, reducing environmental impact.

Opportunities for Licensees & Regulators

Vapor Cartridge Technology offers an exceptional opportunity for regulators and licensees to take control of vape cartridge manufacturing, thereby curbing counterfeiting and delivering a superior product to consumers. VCT is actively seeking partnerships with cannabis regulatory bodies, brand manufacturers, and makers of extraction and processing equipment. Moreover, VCT has recently published a proposal for the California Department of Tax and Fee Administration (CDTFA), detailing how its technology can reinvigorate the legal cannabis market in California.

VCT founder Timothy McCullough is available for discussions regarding the proposal and the potential benefits of implementing this groundbreaking technology.

About VCT:
Vapor Cartridge Technology (VCT) is a patented and FDA-approvable process for extracting essential oils and resins from cannabis, along with an FDA-approvable device for delivering a pure and exact dose of the extracted oils/resins as a consistently reliable, precise inhalable vapor. This cutting-edge technology, once commercialized, will provide a pure and exact dose of inhalable vapor and will be far more cost-effective than current methods in both medical and recreational markets.

Vapor Cartridge Technology LLC is actively seeking licensing opportunities for their new technology. Regulators and venture capital firms in both existing markets and emerging markets may reach Tim McCullough via email or telephone.

Email: TLM.VCT.144@comcast.net Mobile: 651- 491- 2115

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General Cannabis Licensing Opens in New York

10/04/2023

General cannabis licensing in New York opens today amid an injunction on its Conditional Adult-Use Retail licensing program imposed by a judge in August. The 60-day window includes licensing applications for cultivators, processors, distributors, retailers, and micro licenses.

The window opens two days before the state Supreme Court is set to make a decision on the current injunction. Justice Kevin Bryan in August imposed the injunction on cannabis licenses in New York after finding that the state had not followed its own rules with regard to the definition of social equity. The lawsuit was filed by four service-disabled military veterans who argued that the Office of Cannabis Management created a licensing system that ran afoul of New York‘s adult-use cannabis law and improperly limited initial licenses to people with cannabis convictions rather than a wider category of social equity applicants, including service-disabled military veterans. The lawsuit claims that the cannabis regulators overstepped their authority by creating the licensing category for people with convictions because that decision was not approved by the Legislature and that the decision violates the state constitution.

Since the imposition of the injunction, all of New York’s cannabis licensees that have not opened their business in earnest have been in flux, forced to stop building out their sites or working toward opening.

The slow rollout of adult-use cannabis sales in New York, paired with the court order, has led to what lawmakers described in a letter to Gov. Kathy Hochul (D) as “250,000 pounds of unsold cannabis.” In that letter, the signatories urged the governor to pass the Cannabis Crop Rescue Act, which would allow farmers to sell their cannabis to dispensaries on Tribal lands in the state.

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Study: Nearly 19% of Online Cannabis Sellers Do Not Require Age Verification

10/04/2023

A recent study published in JAMA Pediatrics suggests that 18.8% of online cannabis sellers do not require age verification, according to a Healio News report outlining the research. Among the 80 sellers included in the study, 84% offered nontraceable payment methods, which could help children hide their purchases, and 28% had an out-of-state delivery option.

Between July 1, 2022, and June 15, 2023, researchers created a list of Google search terms to identify online cannabis dispensaries that sold to U.S. customers, and collected data on various attributes of the sites, such as “if a site verified a user prior to entering the website and prior to checkout,” Ruth L. Milanaik, DO, a developmental and behavioral health specialist at Cohen Children’s Medical Center, explained to Healio.

It is not clear if the researchers differentiated between licensed brick-and-mortar cannabis dispensaries operating within a state-regulated market and online-only businesses selling processed hemp products. In most states, licensed cannabis dispensaries and delivery services are required to manually check ID for every purchase, often at multiple points of interaction. Purveyors of hemp-derived products are essentially unregulated, operating under the disputed assumption that the 2018 Farm Bill legalized any hemp-derived cannabinoid product containing less than 0.3% THC.

The researchers found 80 online dispensaries based in 32 states and recorded their policies and products. Seventy percent of the websites prompted users to click yes to confirm they were of legal age, and 3.8% asked for a specific birth date, but none required verified age documentation to enter the website.

“The lack of age verification was surprising, but not unexpected,” she said, “as we knew that age verification tactics were lacking on many alcohol and e-cigarette sites as well from reading previous research.”

According to the research, another 66.3% required users to verify age when completing a purchase or on a receipt of a cannabis product, with half accepting options such as government-issued identification, 26.3% accepting a medical cannabis identification number, and 10% accepting a self-reported birth date. 92.5% of the dispensaries offered vapes, 93.8% offered edibles, 53.3% offered nonalcoholic beverages, and 78.7% offered chocolates.

Local delivery was offered by 67.5% of the sellers, with 66.3% offering pickup. Another 27.5% of the sites offered out-of-state delivery, with 95% saying they could deliver to states with differing cannabis laws than the state where the dispensary was located.

Milanaik told Healio that the researchers were “most surprised by the offers to ship across states and the vague language” on many of the websites.

Since the researchers used Google to identify dispensaries, and since licensed dispensary owners would be unlikely to publicly flaunt rules that would result in their license being revoked (i.e. selling across state lines), it is likely that many if not all of the reviewed dispensaries offering interstate sales were selling hemp-derived products, not regulated cannabis.

The fact that the researchers apparently did not distinguish between hemp-derived products and regulated cannabis products highlights the lack of consumer awareness of the difference, and the urgent need for better regulations governing intoxicating hemp products to prevent them from winding up in the hands of children.

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Georgia Has Been Miscounting Medical Cannabis Patients and Caregivers for Years

10/03/2023

The Georgia Department of Public Health (DPH) has been miscounting the number of medical cannabis patients and caregivers enrolled in its low-THC oil registry for years, 11 Alive reports. Health officials had previously reported there were about 50,000 people signed up for the registry, but the figure is actually about 14,000.

The inconsistency was due to officials counting expired and duplicate ID cards, patients counted as caregivers, and about 3,400 patients who had died. The state database had counted 21,000 caregivers but the number is actually 1,200. DPH Commissioner Kathleen Toomey told 11 Alive that the state relied on physicians to remove patients who stopped using the oil or died, but many of them stopped reporting the information during the COVID-19 pandemic.

In Georgia, the number of registered medical cannabis patients directly impacts the number of dispensaries that can open.

Gary Long, CEO of Botanical Sciences, one of the state’s two licensed medical cannabis companies, said the firm is “disappointed to learn of this discrepancy” because it relies on the state data “to make critical business decisions.”

“We are eager to continue working with the state to increase awareness about and broaden Georgians’ access to medical cannabis,” he told 11 Alive.

In an interview with the Atlanta Journal-Constitution, Long said “focus should be on how we move past this in a cohesive way that increases awareness of this industry in our state and the availability of these therapeutic products for patients in need.”

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Former Massachusetts Cannabis Control Commission Head Sues Over Suspension

10/03/2023

The former chairwoman of the Massachusetts Cannabis Control Commission (CCC) is suing the state treasurer after she was removed from her position leading the agency, SHNS reports. In the lawsuit, Shannon O’Brien accuses Deborah Goldberg of removing her as head of the CCC “without notice, without articulated reason, and without any opportunity to be heard, all of which is required by the clear and unambiguous provisions of Massachusetts law … as well as basic norms of due process.”

Goldberg had appointed O’Brien to chair the CCC a year ago but suspended her two weeks ago without offering a reason publicly. In a statement following the suspension, but prior to the lawsuit, Goldberg said she removed O’Brien based on “several serious allegations” made by an unnamed commissioner and staff about her behavior. In a response to the lawsuit, a spokesperson for Goldberg said the treasurer “is confident that she has taken the appropriate actions to address the matter.”

“Several serious allegations were made by a Commissioner and CCC staff about the Chair’s behavior and the CCC initiated an investigation, hiring an outside law firm. The law firm undertook an investigation and has returned with a report. According to the CCC’s employee handbook, suspension with pay is the only allowable remedy at this point, as the findings are being reviewed and action is considered. A second challenge involved in this situation is that the enabling legislation for the Commission clearly establishes the CCC as an independent entity. The role of the Treasurer is to appoint the Chair and jointly appoint two other Commissioners, but beyond that the office of the Treasurer has no other authority, oversight, management, or influence over the Commission.” — Goldberg in a statement

The lawsuit is asking for a preliminary injunction to stop Goldberg from removing O’Brien, describing the move as “unlawful.”

Last year, the CCC’s first chair, Steve Hoffman, resigned from the position. O’Brien’s lawsuit claims Hoffman left the role after the agency’s “entrenched bureaucracy” made “false allegations against him.” At that time, Hoffman offered no reason for his departure, saying it was “a natural inflection point when the time is right for a transition in leadership.”

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Sen. Grassley Says Congress Should Prioritize Scheduling Fentanyl-Related Substances Over Cannabis Banking

10/03/2023

In a letter to Senate Majority Leader Chuck Schumer (D-NY), Sen. Chuck Grassley (R-IA) said the chamber should prioritize a measure to permanently schedule fentanyl related substances under the Controlled Substances Act over the passage of the Secure and Fair Enforcement Regulation (SAFER) Banking Act Banking Act.

In the letter, Grassley claims that the banking bill “could equip criminal actors with resources to expand their influence.”

“For years, the law enforcement community has raised serious concerns that the SAFE Banking Act and its progeny are a boon for the very cartels that are pumping fentanyl into our streets. Despite its relation to Title 18, the legislation has largely bypassed the critical eyes of the Senate Judiciary Committee, and the current text does little to resolve the Justice Department’s enforcement concerns.” — Grassley in the letter

Grassley added that he is “disheartened” that Schumer intends to bring the cannabis banking bill “to the Senate floor with all due speed.”

Instead of addressing the fentanyl crisis, Grassley said “the Senate appears to be turning its attention to legislation designed to ease the movement of marijuana money through the financial system, and provide access for Wall Street to invest billions of dollars into this industry.”

The bipartisan SAFER Baking Act passed the Senate Committee on Banking, Housing and Urban Affairs late last month. The measure has received support from a bipartisan group of more than 20 attorneys general who sent their own letter to Congressional leadership urging lawmakers to approve the bill.

In their letters, the AGs note “the lack of access to banking services creates both barriers to entry into the industry and instability for existing businesses” and the law “will enable the evolution of a banking system for legalized cannabis-related businesses that is both responsive and effective in meeting the demands of our economy.”

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Federal Judge Blocks Arkansas Law to Ban Hemp-Derived THC

10/02/2023

A federal judge has blocked an Arkansas state law that aimed to ban hemp-derived THC products, Arkansas Business reports. The decision by U.S. District Court Judge Billy Roy Wilson prevents the state from enforcing the law and the judge also denied the defendants’ motion to dismiss the case, setting a bench trial for September 7, 2024.

The ban, which took effect August 1, narrowed the definition of hemp “to recriminalize the possession, manufacturing, transportation, and shipment of certain popular hemp-derived cannabinoid products,” the plaintiffs said in the lawsuit, adding that they feared that if the law wasn’t blocked, it “would lead to thousands of lost jobs around the state and turn farmers, business owners, and consumers – including Plaintiffs – into criminals overnight, despite no change in federal law.”

The now unenforceable state law covered hemp-derived delta-9 THC, delta-8 THC, and delta-10 THC and added each to the state’s controlled substances list.

In the ruling, Wilson said the plaintiffs were likely to win the case and that they suffer “a credible threat of criminal prosecution” that could affect their ability to obtain a license to grow or handle legal hemp as well as lost profits.

Abtin Mehdizadegan of the Little Rock office of Hall Booth Smith, who represented the plaintiffs, said in an email to Arkansas Business that the judge’s order “represents an important watershed moment for the hemp industry,” noting that while it only applies to Arkansas, the plaintiffs “hope and expect that other states with similarly misguided ideas about banning industrial hemp products will take note.”

The plaintiffs named Arkansas officials, including Gov. Sarah Huckabee Sanders (R), Attorney General Tim Griffin and prosecuting attorneys as defendants. They argued that the law is unconstitutional because it directly conflicts with the federal 2018 Farm Bill, which removed hemp from the federal schedule of controlled substances.

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Michigan Ends Pre-Employment Cannabis Testing for Most State Jobs

10/02/2023

Rules ending cannabis testing for tens of thousands of government employees in Michigan took effect on Sunday, FOX 2 reports. The Michigan Civil Service Commission had first proposed the rule change last May and the reforms were unanimously approved by the commission in the summer.

Employees who work in safety-sensitive positions, including law enforcement, operate vehicles, provide health care, or work with prisoners, will still be tested for cannabis before being hired but the change impacts about two-thirds of the jobs within the state government.

In an interview with FOX 2, Commissioner Nick Ciaramitaro said “Whether or not we agree with (recreational cannabis) is kind of beyond the point in terms of pre-hire.”

“Use of marijuana on the job is different than having used it months before you take the test. It doesn’t make sense to eliminate qualified people because they took a gummy two weeks ago.” — Ciaramitaro to FOX 2

There are currently about 200 applicants who are barred from working for the state due to a failed pre-employment cannabis test. Under the new rules, those individuals can reach out to the civil service department and request the removal of the sanction, allowing them to be eligible for state employment.

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South Dakota Considers Increasing Medical Cannabis THC Caps

10/02/2023

South Dakota officials are considering allowing 10% more THC in medical cannabis products and larger-sized containers as part of proposed changes to the state’s medical cannabis program, KELO reports. The changes also include rules prohibiting medical cannabis products from being manufactured with unadulterated cannabis and requiring rolling papers used for prerolls to be tested by state-approved laboratories.

During a hearing by the Legislature’s Rules Review Committee, Jeremiah Murphy, representing the Cannabis Industry Association of South Dakota, said that while he agreed that some additives are harmful and should be banned under the medical cannabis program, other additives can be either beneficial or dangerous depending upon the product that they are in. He suggested that the agency should develop a more detailed list of adulterants rather than outlawing them in a general rule.

Murphy also told the panel that a proposed testing requirement for rolling papers would be costly for manufacturers and the higher prices would be economically uncompetitive. He added that patients could still buy rolling papers and cannabis from dispensaries to roll their own, which wouldn’t be subject to state-required testing. He suggested that officials should instead develop a list of pre-approved rolling papers that manufacturers could use.

The Department of Health is accepting public comments on the proposal through October 9.

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American Nurses Association Formally Recognizes Cannabis Nursing Specialty

9/29/2023

The American Nurses Association (ANA) on Thursday announced it is formally recognizing cannabis nursing as a specialty. The American Cannabis Nurses Association (ACNA) identifies cannabis nursing as a practice focused on the care of healthcare consumers seeking education and guidance in the therapeutic use of cannabis.

ANA is the sole reviewing body of specialty nursing scope of practice and standards of practice, requests for specialty recognition, and affirmation of focused practice competencies.

In a statement, ANA President Jennifer Mensik Kennedy said the recognition “highlights the essential role and special contribution of cannabis nurses to the health care system and promotes enhanced integration of cannabis therapies for health care consumers across diverse health care settings.”

ACNA President Rachel Parmelee said the organization is “deeply gratified by the groundbreaking establishment of cannabis nursing as an ANA-recognized nursing specialty.”

“Nurses are the largest group of health professionals, providing an opportunity to change the health care paradigm and include diverse wellness modalities beyond traditional Western medicine. Cannabis nursing requires specialized knowledge and competencies to navigate care and address the stigma associated with medical cannabis use to support a healthy society. We seek to create lasting, transformative change that enriches both specialized and general nursing practices, ultimately serving the well-being of patients nationwide.” — Parmelee in a press release

The ANA added that it “supports the urgency of clinical research to inform patients and providers on the efficacy of marijuana and related cannabinoids.” In a 2021 position statement, the organization said it supported the “review and reclassification of marijuana’s status from a federal Schedule I controlled substances.”

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Former Michigan Medical Cannabis Board Head Sentenced to Nearly 5 Years in Prison for Accepting Bribes

9/29/2023

Rick Johnson, the former Michigan House speaker and head of the Michigan Medical Marihuana Board (MMB) was sentenced on Thursday to nearly five years in prison for accepting bribes while leading the MMB, the Associated Press reports. Johnson admitted he accepted at least $110,000 from 2017 to 2019.

Johnson served as Michigan’s House speaker from 2001 to 2004. During his sentencing, he told the judge he is “a corrupt politician.”

Others already sentenced in the scheme include Michigan businessman John Dalaly, who pleaded guilty to charges levied against him in April. Dalaya admitted to paying Johnson at least $68,200 in cash and other benefits, including two private flights to Canada, and hired Johnson’s wife, who helped him fill out forms that would end up in front of the state board, as a consultant for $4,000 a month. Dalaya was sentenced earlier this month to more than two years in federal prison.

Two lobbyists have also pled guilty in the scheme.

After Johnson’s hearing, U.S. Attorney Mark Totten said the former lawmaker’s “brazen corruption tainted an emerging industry, squandered the public’s trust and scorned a democracy that depends on the rule of law.”

Prosecutors had recommended a nearly six-year prison term for Johnson.

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More Than 20 AGs Send Letter to Congressional Leadership Urging Passage of SAFER Banking Act

9/29/2023

A bipartisan group of more than 20 attorneys general on Tuesday sent a letter to Congressional leadership urging them to pass the Secure and Fair Enforcement Regulation (SAFER) Banking Act. The bill passed the Senate Committee on Banking, Housing and Urban Affairs on Wednesday.

In the letter, the attorneys general note that current federal law, which classifies cannabis as a Schedule I drug, presents “a risk of criminal and civil liability to banks providing services to state-licensed cannabis dispensaries and related businesses” which significantly inhibits “the ability of financial institutions to provide services to regulated cannabis operators and leaves those businesses struggling to find financing.”

“The lack of access to banking services creates both barriers to entry into the industry and instability for existing businesses. Recently, Mastercard announced that it will no longer allow its cardholders to use their bank cards to purchase cannabis, cutting off a key revenue stream and making it harder for customers and businesses alike,” the letter states. “Further, where the public perceives that regulated businesses can only conduct business in cash, employees and customers are at greater risk of violent crime in pursuit of that cash. Several jurisdictions have seen a spike in robberies of cannabis businesses, some of which have resulted in deaths.”

The signatories add that passage of the law “will enable the evolution of a banking system for legalized cannabis-related businesses that is both responsive and effective in meeting the demands of our economy.”

The letter is signed by the attorneys general of Arizona, California, Colorado, Connecticut, Georgia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New Mexico, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, Vermont, Washington state, and Washington, D.C.

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Körber Offers Preroll Solutions to Help Cannabis Brands Increase Profit

9/28/2023

Pre-rolls have undeniably become one of the fastest-growing categories in the cannabis industry. Consumers seek convenience, and the era of worrying about low-quality cannabis in pre-rolls has faded into the past.

Furthermore, the introduction of cylindrical or cigarette-style pre-rolls (straight pre-rolls) has elevated an outstanding smoking experience, adding to the allure of this category.

With rising sales figures in many states, the need to optimize production becomes paramount, especially in light of limited financial liquidity and workforce availability. The focus shifts towards profitability, cost reduction, increased product quality, and enhanced appeal.

Let’s face it; achieving these goals requires departing from conical pre-rolls and slow-paced automated production. It’s time to draw inspiration from the tobacco and cigarette industry’s rod production methods.

Efficiency and Precision in Cannabis Production
In the 1950s, cigarettes came in various shapes, mostly lacking filters. Brands like Marlboro recognized the potential of filters, appealing to a broader consumer base. Standardizing the cylindrical shape introduced automation, significantly reducing production costs. Today, those early adopters dominate the global cigarette market, and Körber (formerly Hauni), the pioneer of filter cigarette making machines, stands as the undisputed number one machine supplier for this industry.

The question arises: Can this approach thrive in the highly fragmented U.S. cannabis market, challenged by interstate shipments? The answer is affirmative, albeit on a smaller scale. Körber’s CANTOS cylindrical pre-roll efficiently produces 40,000 pre-rolls per 8-hour shift. Leveraging the cigarette shape, it seamlessly integrates with regular cigarette packers. As national legalization approaches, highly automated and efficient production hubs emerge, making it even more enticing for some to transition to the world’s fastest pre-roll maker, the Nano-H, producing over 1,000 pre-rolls per minute.

Continuous Flow Production
Cigarettes are produced in a continuous flow, rather than individually rolled. This principle allows production speeds of up to 20,000 cigarettes per minute while maintaining the highest possible quality. Körber’s pre-roll makers embrace this continuous production principle, with adjustments to handle sticky cannabis. Achieving production costs per pre-roll (including all non-cannabis materials) below $0.02 becomes attainable.

The Filter Plug: Customization and Trends
Upon opening a classic cigarette box, consumers immediately notice the filter plug. Beyond potentially reducing harmful substances, filter plugs enhance pre-roll appearance and flavor. With over 80% of filters worldwide produced on Körber’s filtermaking machines, Körber collaborates with customers to develop innovative filters. These include the capsule filter, featuring a crushable flavor capsule (e.g., mint), and the multi-filter, combining segments like charcoal and acetate. The crimped paper filter plug, once popular in France, has made a comeback due to the demand for biodegradable materials. The crutch tip, commonly found in many pre-rolls, reflects the growing popularity of paper filters. The filter plugs are attached to the cannabis rod by a tipping paper. This tipping paper offers an excellent opportunity for product customization with various colors and logos.

Material Preparation and Airflow Control
Drawing from the tobacco industry’s experience, cannabis production benefits from techniques like resting and cooling to prepare materials for downstream processes. Blending, initially met with skepticism, can however standardizes cannabis characteristics, ensuring a consistent and enjoyable smoking experience, especially with psychoactive substances. With 75 years of expertise in tobacco preparation machinery, Körber applies this knowledge to refine the cannabis preparation process.

Airflow control is a critical factor in mastering the smoking experience. Cigarette companies have perfected the ideal combination of product hardness and airflow to ensure a slow, enjoyable burn. The continuous cigarette production principle, coupled with meticulous filler preparation, enables cannabis companies to achieve similar metrics. Perforated tipping paper or online perforation enhances airflow and can be used in case a lighter taste wants to be achieved.

About Körber
The Körber Group, with over 12,000 employees worldwide, provides machinery and solutions across pharmaceuticals, tissue, and tobacco industries. Körber Logistics offers automated warehouse and parcel handling solutions, while Körber Digital provides AI-based solutions. Körber Technologies (formerly Hauni Maschinenbau), with over 4,000 employees, leads in tobacco machinery and solutions. For over three years, Körber has offered pre-roll makers tailored for the cannabis industry. The compact TFM machine efficiently fills pre-made cylindrical tubes, which are significantly more cost-effective than cones, at 80 cpm. Beyond this, CANTOS and NANO-H are the machines using the continuous cigarette making principle. Körber’s pre-roll makers handle high-THC material and industrial hemp with precision and Körber assist customers in optimizing the entire production process, from material preparation to production flow, as well as the with the selection of the materials (tipping paper etc.).

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USDA Awards $600K Grant to Study How Hemp Genetics Affect Cannabinoid Production

9/28/2023

Virginia Tech’s College of Agriculture and Life Sciences was awarded a $600,000 U.S. Department of Agriculture grant to study the regulation of biosynthetic pathways for cannabinoid production. The research aims to better understand the pathway processes that could allow for better selection for, or modification of, plants with particular cannabinoid content, which could increase profit and reduce risk for growers as well as advance further use of cannabinoids in medical treatments.

The researchers’ objectives are to study the gene regulatory networks that govern cannabinoid biosynthesis and to measure the effect of manipulation of the regulation on the metabolic profile of cannabis. This work could make possible a generation of new varieties, either through conventional or new plant breeding technologies, with enhanced, reduced, or abolished production of specific cannabinoid compounds, the college said in a press release.

The project is led by Bastiaan Bargmann, assistant professor in the School of Plant and Environmental Sciences and affiliated faculty member with the Fralin Life Sciences Institute. It will be performed in collaboration with the Institute for Advanced Learning and Research in Danville, Virginia, and Canada’s York University.

The U.S. legalized industrial hemp at the federal level in 2018 via the Farm Bill, a package of legislation that gets passed by Congress roughly every five years.

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New York Attorney General’s Office Issues Stay in Leafly’s Challenge on Third-Party Marketing Ban

9/28/2023

The New York Attorney General’s Office last week agreed to a stay in cannabis technology company Leafly’s legal challenge to the state’s third-party marketing ban. The stay effectively blocks the state from enforcing the prohibition on Leafly, but not other third-party marketers.

In a statement, Yoko Miyashita, CEO of Leafly, said that while the firm is “very pleased” with the decision, the company remains “concerned that the Office of Cannabis Management’s stance towards third-party platforms deprives consumers and licensed cannabis retailers with important tools that help them navigate legal cannabis.”

“We’ll continue to work toward sensible regulations and are hopeful for a solution that empowers small businesses and supports consumer education and choice, while still protecting the public health, safety, and welfare of the people of New York.” — Miyashita in a press release

The order does not end the lawsuit, which alleges that state regulators unfairly targeted third-party platforms in a misguided attempt to restrict the way retailers may market or promote their business and products and prevent price-shopping consumer behaviors. The lawsuit alleges, that the adoption of these regulations by the state is both arbitrary and capricious and a violation of the U.S. and New York constitutions.

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North Carolia House Passes Consumable Hemp and Kratom Regulation Bill

9/28/2023

House lawmakers in North Carolina last week unanimously passed a bill to regulate hemp-derived consumables and kratom. The measure would require businesses to get licenses to sell the products, includes testing provisions, and prohibits sales to anyone under 18 years old.

Eric Stahl, of The Burnt Pot Cannabis Café and Modern Apothecia, told WNCN that the law “is a perfect example” of the Legislature “trying to work on behalf of small business to create a platform” that allows current hemp industry operators to continue business. Stahl did, however, note that if the final version of the law caps THC levels at 3 milligrams it would likely remove “in the range of 95%” of products his business currently carries from store shelves.

“What we need to do is make sure that all the players are acting fairly, that these products are being tested correctly, and that we’re not allowing, most importantly, not allowing intoxicating products to wind up in the hands of children.” — Stahl to WNCN

The law does not include criminal penalties for product violations by retailers but would impose a $500 fine for first-time violations, a $750 fine for a second violation within three years, a fine of up to $1,000 and a 30-day license suspension for the third violation within three years of the first violation, and fines up to $2,000 and either a one-year license suspension or license revocation for four or more violations within three years of the first violation, according to a bill summary.

The measure would make it a misdemeanor to supply hemp products to anyone under the age of 18. The bill includes a fine structure for selling kratom to underage individuals but includes misdemeanor charges for youths who misrepresent their age to purchase the products.

The measure is currently in the Senate Committee on Rules and Operations.

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SAFER Banking Act Passes Key Committee and Moves Next to Senate Floor

9/27/2023

The Secure and Fair Enforcement Regulation (SAFER) Banking Act has passed the Senate Committee on Banking, Housing and Urban Affairs and moves next to the Senate’s floor for consideration. The bipartisan effort is being led by Sens. Jeff Merkley (D-OR), Steve Daines (R-MO), Kyrsten Sinema (I-AZ), Cynthia Lummis (R-WY), and Senate Majority Leader Chuck Schumer (D-NY).

The proposal seeks to normalize banking access for cannabis companies operating in states with legal markets.

“This legislation will help make our communities and small businesses safer by giving legal cannabis businesses access to traditional financial institutions, including bank accounts and small business loans. It also prevents federal bank regulators from ordering a bank or credit union to close an account based on reputational risk.” — The co-sponsoring senators, in a statement

The proposal looks a lot like the bipartisan SAFE Banking Act, which has been introduced and passed seven times so far in the U.S. House, but which always failed to progress in the Senate — even when Democrats had full control of both Congressional chambers. The new bill aims for stricter regulations at the federal level, prohibiting banks from terminating cannabis-related accounts without “valid reason,” or for denying services based on “personal beliefs or political motivations,” the CNBC reported.

In a press release, National Cannabis Industry Association CEO Aaron Smith said:

“The committee’s approval of the SAFER Banking Act which gives hope to thousands of compliant, tax-paying businesses desperately trying to access the basic financial services other businesses take for granted. This uniquely bipartisan legislation has the potential to save lives and help small businesses; it’s time for Congress to get it to the president’s desk without further delay.”

So far, 39 U.S. states have passed legalization policies for adult use or medical purposes, and every single legal market has struggled with access to traditional banking services due to the plant’s ongoing federal prohibition.

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Detroit Psychedelic Church Raided by Police

9/27/2023

Detroit Police last week raided the city’s first “psychedelic church,” operated by Soul Tribes, which offers psilocybin mushrooms as a holy sacrament, the Detroit Metro Times reports. The raid came days after the Metro Times published a cover story about the church.

Owner Shaman Shu believes the raid violates Proposal E, which was approved by voters last year and decriminalized the possession of entheogenic plants and fungi, including psilocybin mushrooms, in the city. The church includes a “sacrament center” which sells dried psilocybin mushrooms, capsules, and gummies.

According to a search warrant obtained by the Metro Times, the action included the seizure of all narcotics, including “psychedelic mushrooms” from the “illegal dispensary inside the purported church” along with “all books, records, receipts, notes, ledgers, and other papers relating to the procurement, distribution, storage, and transportation of controlled substances.”

Shu told the Metro Times that officers seized more than $700,000 in psilocybin mushrooms intended for therapeutic use and ordered the church’s closure. Under Proposal E, therapeutic use of entheogenic plants and fungi was also decriminalized

“They stole ancient sacrament. It was prayed over and meditated over. It’s a healing sacrament… They blocked my property down without due process. You can’t do that. … They think we’re not a church. But that’s why the federal government was created, to separate church and state so that cities do not opine on what churches are [and] what ministries are. We’re a ministry and a religious organization.” — Shu to the Metro Tims

Detroit Police Department Sgt. for Media Relations Jordan Hall told the Metro Times that the raid “was due to a lack of licensing and the amount of substances that were distributed.”

Mayor Mike Duggan’s office told the Metro Times 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.”

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MORE Act Reintroduced in Congress

9/27/2023

Congressional Democrats last week reintroduced the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which would decriminalize cannabis federally and implement criminal justice reforms. The measure would also impose a 5% federal cannabis tax on sales to fund three grant programs.

The bill passed the House in 2020 and 2022 but was not taken up in the Senate.

In a statement, Rep. Earl Blumenauer (D-OR), founder and co-chair of the Congressional Cannabis Caucus, described the measure as “the only comprehensive cannabis reform that has passed either chamber of Congress – twice.

“It is the gold-standard, reflecting the concerns of businesses, researchers and impacted communities alike.” — Blumenauer in a press release

Rep. Sheila Jackson Lee (D-TX), chair of the Subcommittee on Crime, Terrorism, and Homeland Security, added the bill would “take meaningful steps to address the harmful impacts of the federal prohibition, particularly on communities of color, and align federal law with that of many states.”

The measure would also open up Small Business Administration funding for legitimate cannabis-related businesses and service providers, provide non-discrimination protections for cannabis use or possession, including, prohibiting the denial of any federal public benefit (including housing) based on the use or possession of cannabis, or prior cannabis-related conviction and provides that the use or possession of cannabis, or prior cannabis-related conviction, will have no adverse impact under the immigration laws.

The measure is backed by the Leadership Conference on Civil and Human Rights, Drug Policy Alliance, NORML, Better Organizing to Win Legalization, and Minorities for Medical Marijuana, the Center for American Progress, and Students for Sensible Drug Policy.

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New York Lawmakers Urge Gov. to Sign Bill Allowing Cannabis Farmers to Sell to Tribes

9/27/2023

Nearly 70 New York lawmakers on Tuesday sent a letter to Gov. Kathy Hochul (D) urging her to sign the Cannabis Crop Rescue Act which would allow state-licensed cannabis farmers to sell their products to dispensaries located on Tribal lands in the state. The law passed the Legislature in June but Hochul has yet to sign it into law.

New York’s adult-use rollout has been plagued by lawsuits, including one that has led to an injunction against any licensing under the current “conditional” rules that provided the first batch of retail licenses to social-equity applicants; however, in August, a judge found that the state broke its own rules by not including service-disabled military veterans in the Conditional Adult-Use Retail Dispensary program. Shortly after the decision, regulators announced they planned to open general licensing on October 4, which would likely end the legal challenge by veterans and related injunction.

In the letter to Hochul, the lawmakers note that “there are over 200 cannabis farmers trying to sell their crops but only 23 dispensaries open statewide,” which “has resulted in more than 250,000 pounds of unsold cannabis.”

During a Cannabis Control Board meeting earlier this month, regulators heard from farmers who complained about the slow rollout and the financial impact on their farms.

“Farmers who took out loans and leveraged all their assets to cultivate these crops are demoralized and facing financial disaster unless we act quickly to provide them with an alternate market,” the lawmakers said in the letter. “Allowing these farmers to sell their cannabis to purchasing agents from New York’s Tribal Nations can be a short-term solution. These Tribal dispensaries would benefit from access to a source of local, safe, laboratory-tested products. Farmers would benefit from a new pathway to sell their products. Along with the Cannabis Grower’s Showcases, it could be the financial lifeline they need right now.”

In a statement, Senate Agriculture Chair Michelle Hinchey (D) noted that “Many New York cannabis farmers are facing dire financial straits with unsold crops from last year, and time is running out to get products to market before they expire.”

Assembly Agriculture Chair Donna Lupardo (D) added that the state owed a debt to the cannabis farmers who “took a risk” to grow the crop.

“Many NY farmers are distressed for a number of reasons, but none more than this group,” she said in a statement. “Opening a one-time window for sales to Tribal Nations will provide some financial relief, while we are working on others means of recompense. There really is no time to waste, as this crop is degrading the longer it goes unsold.”

Earlier this month, the Office of Cannabis Management said it would open 1,500 licenses when the window opens in October.

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The Current Cannabis Landscape

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