California Campaign Seeks to Legalize Psychedelic Mushrooms

9/06/2023

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Activists in California are seeking to add a psychedelic mushroom legalization question to 2024 ballots, the San Francisco Standard reports. Ryan Munevar, campaign director for Decriminalize California, told the Standard that the group originally “wanted to go for all psychedelics, but the problem was there wasn’t enough public comprehension about what else was out there.” 

According to the Decriminalize California website, the campaign must collect 546,651 valid signatures by January 10.  

The proposal would allow for the cultivation, manufacturing, testing, distribution, transportation, possession, and consumption of unlimited amounts of magic mushrooms, and psilocybin-infused products, for adults 21-and-older. Under the initiative, the products would carry no taxes unless they were for adult use, which would carry local sales taxes. Additionally, the proposal would not impose special dual local permits and state license requirements.  

The initiative comes after the state Senate in 2021 passed a bill to legalize possession of psychedelics in the state; however, that bill was not taken up by the state House. In May, the Senate passed a similar measure. That bill, which would not legalize sales, was approved on September 1 by the Assembly Appropriations Committee. 

A survey from the University of California, Berkeley in July found 61% of California voters support a regulated framework for the therapeutic use of psychedelics. Another 49% of respondents supported decriminalization of psychedelics.
 

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Number of Kansas Farms Licensed Grow Hemp Falls to 41 from Peak of 200+

9/06/2023

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The number of Kansas farmers licensed to cultivate hemp in the state has fallen from more than 200 in 2019 to just 41 this year, KAKE reports. The reduction in licenses comes as the share of Kansas farms growing the crop for CBD oil production fell to less than 5% – in 2019 and 2020, that share was about 90%.   

Sarah Stephens, CEO of Midwest Hemp Technologies, told KAKE that while there has been “a reduction in the number of growers and the number of acres on the CBD side,” there has been “an increase in the number of growers and number of acres on the fiber and grain side.”   

Kansas Deputy Agriculture Secretary Kelsey Olson told KAKE that the first few years of hemp production in Kansas were buoyed by a strong CBD market, but since more states have legalized adult-use cannabis, including neighboring Missouri, the demand for CBD products has declined. 

“The landscape has changed over the last few years across the country. I think that may have shifted some of the use.” — Olson to KAKE 

Melissa Nelson, co-owner of the hemp processing facility, South Bend Industrial Hemp, indicated that some of the state’s hemp producers are working to educate farmers on the potential of hemp fiber and grain markets. She noted that Kansas has the right landmasses, seasons, temperatures, and farmer know-how “to lead the industry.” 

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Hemp Growing Manual Released By Private, Academic, and Government Researchers

9/06/2023

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Harvest New York has released a hemp growing manual put together by researchers from Cornell Cooperative Extension (CCE), Alabama A&M University, industry experts, and a research geneticist from the U.S. Department of Agriculture.  

In a statement, Daniela Vergara, a CCE emerging crops specialist and member of the Harvest economic development team, described the guide as “the best manual out there.”

“Everyone knows the industry needs resources to grow, and this was a wonderful collaborative process. … My goal with this manual was that if someone wanted to start growing tomorrow, they could read this and find all the information they would need to be successful.” — Vergara in a press release 

The interactive, full-color, and illustrated manual includes production guidelines for selecting and growing hemp both in the field and indoors, along with considerations for grain and fiber processing, as well as relevant legal and regulatory information for New York state. As new research emerges and state guidelines change, Vergara plans to continue updating the manual and a Spanish-language edition is planned for 2024. 

New York State Sen. Michelle Hinchey (D), chair of the Senate’s Agriculture Committee, in a statement, described hemp as “the material of the future.” 

“And positioning New York to lead the way in its production is a winning strategy for removing plastics from our world and fighting the climate crisis, boosting rural economic development and giving our small farmers a new revenue source,” she said.  

New York Assemblywoman Donna Lupardo, chair of the Assembly’s Committee on Agriculture, added that the manual “will be invaluable to farmers, businesses and policymakers alike” as stakeholders “work to build a successful and sustainable hemp industry in New York state.” 

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hemp plants destroyed in california

Understanding Insurance for Cannabis Operators: Nuances and Trends

9/06/2023

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This guest editorial was contributed by Keith Signoriello, the co-owner and principal of C&S Insurance.

As legalization efforts gain momentum worldwide, the cannabis industry has experienced rapid growth and shows no signs of slowing down. New opportunities have emerged for entrepreneurs and investors in the cannabis industry. However, amidst the excitement, a crucial factor toward long-term success is often overlooked — insurance.

Just like different strains of marijuana, cannabis insurance is nuanced. Whether a business is cultivating, distributing, manufacturing products, or applying to become a registered dispensary, being prepared to face a diverse array of challenges is crucial. One of the best ways to protect a business is with a specialized insurance solution that can swiftly adapt to increases in demand and new regulations while effectively mitigating the risk of crop loss, product liability, theft, and cyber-attacks.

Each business has unique operations and risk profiles, which means the future of cannabis insurance will not be a one-size-fits-all solution. From industry changes to emerging trends, understanding what lies ahead and customizing a comprehensive policy will be key to helping businesses stay ahead of the curve.

Here are important coverages to consider:

Product Liability & Product Recall Coverage
Cannabis and hemp, much like food and alcoholic beverages, are consumer-based products that can cause injury, sickness, or worse. This coverage protects business owners against claims of defective or harmful products.

Professional Liability Coverage
Cannabis professionals, particularly those in healthcare, dispensaries, and labs, can be liable for advice that leads to a negative outcome. Also known as Errors & Omissions Insurance, this coverage is often excluded from standard medical malpractice policies but is essential in shielding against such risks.

Workers’ Compensation
Required by certain states, workers’ comp ensures that employees are protected in case of injury or job-related illness.

Commercial Umbrella Coverage
This coverage extends beyond the realm of those previously mentioned, helping protect against additional driving-related risks that come with product delivery.

Commercial Property Insurance
Typically bundled into a broader program, this type of coverage is essential to a comprehensive business plan and comes with significant variables such as policy limits, named and excluded perils, and claims made versus occurrence.

Commercial Auto Insurance
Generally required by businesses that use vehicles, this type of coverage protects against losses involving cars, trucks, vans, and other vehicles utilized in business operations.

Business Interruption & Business Income Insurance
While often used interchangeably, these coverages offer different forms of protection. Business Interruption coverage is designed to cover expenses during a temporary shutdown. Business Income Insurance covers lost earnings if a business is forced to close due to a covered peril.

Cyber Coverage
With the FBI reporting 4,000 daily cyber-attacks, this coverage helps protect you from breaches in sensitive employee, product, and client data — which is especially important for businesses with access to clients’ medical records.

Despite politicians like Senate Majority Leader Chuck Schumer working to decriminalize marijuana, regulatory scrutiny continues to face the industry at an all-time high. It’s important to know that many standard business insurance policies don’t protect companies from cannabis industry-specific risks. Working with specialized cannabis insurance agents can help navigate local approval processes and ensure policies evolve to address internal and industry-level changes and trends.

For example, the global movement toward decriminalization has already increased curiosity and engagement, fostering a growing user base of cannabis enthusiasts and inspiring diverse emerging trends. Cannabis’ acceptance as a legitimate medicine, growing popularity in cannabis-driven tourism, and the influx of innovative strains and products are already paving the way for a future defined by growth.

Legislative milestones such as the SAFE Banking Act of 2021 and insurance policies tailored to different sectors are a testament to the cannabis industry’s evolution and promise. As widespread acceptance continues to unlock new potential, adequate protective measures will become increasingly vital. By safeguarding ventures from the complexities and challenges presented by this expanding market, these measures will empower businesses to solidify their influence on the global economy for years to come.

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Maine Cannabis Regulators Proposing ‘User-Friendly’ Rules Rewrite

9/05/2023

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Maine cannabis regulators are proposing new guidelines intended to make the state’s rules more user-friendly, the Portland Press Herald reports. Gabi Pierce, Maine Office of Cannabis Policy policy director, said the new rules would be a “repeal and replace” of the old rules that would include updated formatting, organization, and language. 

The proposed regulations include a new policy that would allow cannabis retailers, manufacturers, and cultivators to deliver to hotels and businesses, allowing the companies to cater directly to tourists. Under the current rules, Maine cultivators and manufacturers cannot sell directly to customers. 

The bill to overhaul the state’s regulations also includes provisions to double the allowable THC in cannabis products from 100 milligrams per package to 200 milligrams and double the amount of concentrates individuals can purchase at a time from 5 grams to 10 grams. 

The proposal comes as Maine cannabis sales reached $21 million in July, which represents a new sales record in the state, according to state data outlined by the Press Herald. The state has also seen about 2 million cannabis transactions this year, nearly doubling the number of transactions in all of 2021.  

Officials will discuss the proposed rules changes this week and regulators are taking public comments until September 17. If approved, the new rules would take effect in January. 

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Poll: Majority of Ohioans Back Cannabis Legalization Proposal

9/05/2023

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A new poll from Fallon Research found a majority of Ohioans support the ballot proposal to legalize cannabis for adult use, with 59% of respondents in favor, 32% opposed, and 9% unsure. 

The survey found Democrats backed the reforms 68%-24%, along with 62% of unaffiliated voters, with 28% of the bloc opposed. Nearly half (48%) of Republicans polled supported broad legalization with 46% opposed.  

A strong majority – 68% – of Ohio adults aged 18-44 said they planned to vote ‘yes,’ while 27% were opposed.  Additionally, 62% of adults aged 45-64 backed the reforms, with 28% opposed. Another 46% of adults 65-and-older favored legalization with 42% opposed.  

The poll found 58% of white people in favor of the question, with 33% opposed. Seventy-one percent of Black people indicated they planned to vote yes, with 25% opposed. Another 63% of “other races” polled were in favor, with 32% opposed.      

If the ballot question is approved, Ohioans ages 21 and older would be allowed to buy and possess 2.5 ounces of cannabis and 15 grams of concentrates and grow up to six plants individually and no more than 12 in a household. Cannabis products would carry a 10% excise tax, with revenues used for administrative costs, addiction treatment programs, municipalities with dispensaries, and a social equity and jobs program. 

Last month, the question scored final approval to appear on statewide ballots in November. The reforms are opposed by Republican Gov. Mike DeWine and the Ohio Association of Health Commissioners.  

A study published in August by Ohio State University researchers found that adult-use cannabis sales in the state could generate between $275 million and $403 million by the fifth year of operations. 

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Federal Bill Would Withhold Funds from Tribes and States that Legalize Adult-Use Cannabis

9/05/2023

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U.S. Rep. Chuck Edwards (R-NC) last week introduced legislation to withhold some federal funds from states and tribes that allow adult cannabis use. Under the Stop Pot Act, states and tribes that legalize or have legalized cannabis for adult use would have 10% of federal highway funds frozen.

The action would not apply to states and tribes that legalize or have legalized cannabis for medical use.

“The laws of any government should not infringe on the overall laws of our nation, and federal funds should not be awarded to jurisdictions that willfully ignore federal law. During a time when our communities are seeing unprecedented crime, drug addiction, and mental illness, the Stop Pot Act will help prevent even greater access to drugs and ease the strain placed on our local law enforcement and mental health professionals who are already stretched thin.” — Edwards in a press release

The bill is backed by Smart Approaches to Marijuana Action and the Christian Action League.

The measure comes as the Eastern Band of Cherokee Indians, which are based in Edwards’ home state, will vote this week on allowing the sale and adult use of cannabis on their tribal lands. If approved, lands owned by the tribe would be the only place in North Carolina to buy cannabis legally.

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White House Says Biden ‘Has Always’ Supported Medical Cannabis Legalization

9/04/2023

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President Joe Biden (D) “has always” supported legalizing cannabis for medicinal purposes, White House Press Secretary Karine Jean-Pierre said during a briefing on Friday. The statement came days after the U.S. Department of Health and Human Services (HHS) issued a historic recommendation to the federal Drug Enforcement Administration (DEA) that cannabis be moved from Schedule I to Schedule III under federal law.

“The president asked the secretary of HHS and also the attorney general to initiate the administrative process to review how marijuana is scheduled,” Jean-Pierre said.

“The administration’s process is an independent process — I want to be very clear on that — that is led by HHS and DOJ. It is going to be very much guided by evidence,” she said. “I’m not going to comment on that. I want to be also clear on that piece. So I would refer you all to HHS.”

“Look, the president has always supported the legalization of marijuana for medical purposes. He’s been very clear about that, where appropriate, consistent with medical and scientific evidence. That is why it is important for this review — this independent review that is going to be, again, guided by evidence — to go through.” — Jean-Pierre, in a statement

Notably — and despite Jean-Pierre’s statements — President Biden has not “always” supported the reform of cannabis laws. As noted by Marijuana Moment, the president has championed many pieces of anti-drug legislation throughout his political career, including efforts to ramp up drug war enforcement in the 1990s.

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Illinois Concert Will Be State’s First to Allow Cannabis Consumption

9/04/2023

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The inaugural Miracle in Mundelein music festival is set to be the first concert in Illinois to allow state-approved cannabis consumption, WGN9 reports. The two-day concert will be held September 9-10 in Mundelein, and will feature performances by Cypress Hill, Action Bronson, and Stephen Marley. 

The concert will be held across the street from RISE Cannabis Mundelein Recreational Dispensary. Attendees must be 21-or-older. 

The festival will feature rolling stations and dab bars and organizers will provide complimentary grinders, lighters, papers, and rolling trays. Bongs or glass pipes will not be given to concert-goers. Vape pens will also be allowed as long as they meet state regulations and all cannabis must be purchased from an Illinois dispensary and be in the original packaging; however, the packaging does not have to be sealed. 

Peter Shapiro, founder of Dayglo Presents, told JamBands.com that the event “is a testament to the relationship that music and legal cannabis can have when brought together in the right way.”  

“We named the event, The Miracle, because it really is remarkable that we can now bring cannabis and music together in 2023, and it is permitted and legal. Our goal is to create a new type of event, which showcases the uplifting impact of cannabis in a legal environment, while also supporting and growing a real community.” — Shapiro to JamBands.com 

Alcoholic, hemp-derived, and non-alcoholic beverages will also be available to purchase, and there will also be food vendors. 

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Atrix’s Commitment to Social Equity: 100,000 Free 510 Carts Available for Cannabis Business Owners

9/01/2023

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Artrix, a pioneering solution provider of hardware, marketing support, and strategy consultation in the cannabis vape industry, today announced the highly-anticipated release of Drillor, their revolutionary 510 thread cart that promises to break through barriers and drive social equity in the cannabis vaping community. As part of their commitment to promoting fairness and inclusivity, Artrix is offering an unprecedented 100,000 units of Drillor for free to cannabis businesses and brands in need of support, as the start of their Social Equity Program.

Drillor offers a unique combination of industrial innovation and top-notch manufacturing capabilities, leading to an unprecedented shift in design and affordability. With cutting-edge industrial design and craftsmanship, this innovation redefines what you thought you knew about 510 carts, daring to drill through the walls of stereotypes and conventional expectations.

The key feature that sets Drillor apart is its innovative mouthpiece. Designed with comfort and durability in mind, ensuring a pleasurable vaping experience with every use. Utilizing double injection molding and an oil-leakage-proof design, Drillor eliminates traditional rubber rings, reducing labor costs and providing worry-free installation. The mouthpiece, wrapped in liquid silicone material, offers a soft touch and easy grip, making vaping sessions enjoyable and stress-free.

An added convenience is the groundbreaking addition scale mark on the cartridge, enabling users to check the oil level at a glance. This attention to detail marries operational convenience with oil-filling accuracy, ensuring users bid farewell to overfilling and uncertainty and instead enjoy a seamless, precise fill every time. The ergonomic grip of the plated brass anti-slip texture at the bottom ensures 510 cartridge removal is hassle-free, creating a comfortable and user-friendly experience.

“Drillor means affordable excellence and uncompromising safety. We believe that everyone should have access to high-quality vaping products, every client we serve is treated with the highest degree of esteem, guided by principles of equality that underpin our arpproach.” said CEO of Artrix. “With Drillor, we aim to level the playing field and make premium cannabis vaping accessible to all. Through our Social Equity Program, we want to empower cannabis businesses and brands, providing them with the tools to thrive and succeed.”

Artrix’s dedication to excellence and safety shines through in Drillor’s meticulous design and manufacturing process. From carefully selected raw materials to rigorous quality testing, each Drillor cartridge is crafted to ensure optimal vaping performance with various cannabis extracts, immersing users in a flavorful and satisfying experience with every puff.

As the first product project of Artrix’s Social Equity Program, Drillor is a significant strategy taking a proactive step towards promoting social justice and inclusivity in the cannabis industry. By providing 100,000 units for free to cannabis businesses in need, Artrix aims to foster a more equitable and diverse future for the entire vaping community.

To claim your free Drillor 510 thread carts and be a part of the social equity movement, visit Artrix’s official website and register your interest today. Let’s work together to build a brighter, more inclusive future for the cannabis industry with Artrix leading the way.

About Artrix – Hardware, Marketing, Strategy, We’re All In
Artrix is an emerging international cannabis vaporizer hardware brand that offers more than just cannabis vape devices. It uses an exclusive three-in-one service model that combines superior product solutions, systematic marketing support, and professional strategic consulting to create a great customer experience. Artrix conducts extensive market research and analysis to understand the needs behind each product and provides localized marketing support to maximize its market potential and success.

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Court Tosses Missouri Cannabis Company’s Case Seeking to Reverse Recall of 63k Products

9/01/2023

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The Missouri medical cannabis company that had nearly 63,000 products recalled last month lost its bid to stop the recall after a Cole County Circuit judge on Thursday dismissed the case, KMIZ reports. The judge ruled that Delta Extraction, LLC did not exhaust administrative remedies and that the court lacked the jurisdiction to hear the complaint.   

The Missouri Division of Cannabis Regulation (DCR) had issued the recall because the products were not tracked by the state’s seed-to-sale-tracking system, METRC, and that the agency could not “verify that the products came from marijuana grown in Missouri or that the product passed required testing prior to being sold at dispensaries.” DCR added that “no adverse reactions for this product have been reported.” 

During an administrative hearing on the recall last month, Jack Maritz, a manager for Delta Extractions, testified that during the distillation process, hemp-derived THCa may be used from out-of-state sources. Delta argued that previous regulations allowed the out-of-state hemp product to be used, while the state countered that using out-of-state products is not allowed and that more recent regulations clarified that. 

Delta is also being sued by medical cannabis company Dark Horse Medicinals Missouri, LLC, which purchased $325,632 worth of the now-recalled products from Delta Extractions. In the lawsuit, Dark Horse said it was unaware that the distillate was “unusable” in Missouri and that Delta “knowingly and intentionally withheld from Dark Horse the fact that the distillate was unlawfully sourced or derived.”   

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Workers Unionize at Grand Rapids, Michigan Dispensary

9/01/2023

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Workers at Grand Rapids, Michigan’s Ascend Cannabis Provisions on Thursday voted to join the Teamsters Local 406. It is the second collective bargaining agreement in the Michigan cannabis industry that the Teamsters have ratified, and the first in the Western part of the state. 

In a statement, Peter Finn, Teamsters Western Region International vice president and Food Processing Division director, described the contract as a “gust of wind before the tornado of new organizing in the state.” 

“I have total faith that the profit-generating workers in cannabis – the ones who sell, harvest, and deliver the product – have what it takes to seize what they deserve. They will make cannabis a prosperous, middle-class career. Critical victories like this one keep happening throughout the country.” — Finn in a press release 

The agreement includes an immediate raise with a 3% wage increase for all workers each following year, guaranteed gratuities and increased transparency around the way they are distributed, guaranteed discounts, seniority, protections from unjust termination and discipline, enhanced safety for drivers, and more paid time off. 

Ellis Wood, secretary-treasurer of Local 406, called the contract “proof that workers are sharp, energetic, tenacious in the organizing of new industries.” 

“These young men and women took on a multi-state operator with billions of dollars and won,” Wood said in a statement. “They are a critical component of a nationwide fight for a better tomorrow in this craft.” 

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Alabama Medical Cannabis Commission Issues Administrative Stay on Licensing Process

9/01/2023

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The Alabama Medical Cannabis Commission (AMCC) on Thursday issued an administrative stay on its licensing process, AL.com reports. The stay comes after the commission has twice failed to issue licenses, first after “potential inconsistencies” in scoring data and again after a judge granted a temporary restraining order finding the agency had violated the state’s open meetings law.  

The AMCC is named in two lawsuits related to the licensing process: one over the open meetings law violation claims, and another over its plan to void and reissue the permits. On Monday, the AMCC told a judge that it planned to “start back at square one” in the licensing process. 

AMCC Chair Rex Vaughn told AL.com that it was unclear whether licenses would be awarded at the next commission meeting on September 19 and that whether the agency could move forward would depend on what happens at a September 6 court hearing.   

Vaughn said the AMCC would not redo the scores by evaluators recruited by the University of South Alabama – which the agency has admitted have inconsistencies – and would continue to use the scores as a “guideline” to help make licensing decisions. 

Vaughn added that the commission would not hold another closed meeting in the licensing process – a practice that has drawn a lawsuit. Vaughn added that trying to predict the timeline for issuing licenses is “getting more complicated by the day” due to the lawsuits and scoring issues. 

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Major Cannabis Reform & Industry Non-Profits: Rescheduling Won’t Achieve Biden Administration’s Campaign Promise or Social Justice Goals

9/01/2023

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Group says rescheduling is simply a rebranding of prohibition, not the end of it.

WASHINGTON, D.C. – In response to reporting this week that the Department of Health and Human Services (HHS) is recommending to the Drug Enforcement Administration (DEA) that cannabis be reclassified under the Controlled Substances Act (CSA) from Schedule I to Schedule III, a group of drug policy reform nonprofits and cannabis industry trade organizations focused on social justice are urging the Biden administration to make good on its promise to decriminalize cannabis by fully removing cannabis from the list of controlled substances.

The groups include: Drug Policy Alliance (DPA), Minority Cannabis Business Association (MCBA), National Cannabis Industry Association (NCIA), Parabola Center for Law and Policy, Better Organizing to Win Legalization/BOWL PAC, Students for Sensible Drug Policy (SSDP) and Marijuana Justice.

During his 2020 campaign President Biden promised to decriminalize cannabis, a pledge that can only be fully realized by removing the substance from the CSA schedule entirely (aka “descheduling”).

“While our organizations acknowledge that HHS’s recommendation will appear as a step forward, it would fail to decriminalize cannabis, lawfully permit the existence of the medical and adult-use programs and businesses that now operate in 38 states, or rectify decades of injustice associated with more than 25 million arrests and related collateral consequences since the creation of the CSA by Richard Nixon. Reclassification would continue to perpetuate a system that disproportionately affects minority communities, leaving the social justice promise of cannabis reform unfulfilled,” said leaders of the advocacy and business groups.

Facts and Perspectives

Fact: Rescheduling marijuana will not release anyone currently incarcerated for a marijuana conviction or expunge any marijuana-related records. Nor would it address the immigration related consequences which are a leading cause of deportation of immigrants to the US or restore eligibility for public benefits such as housing and nutritional assistance for people with marijuana convictions.

“President Biden’s statement on marijuana reform in October 2022 and his administration’s characterization of marijuana reform as an equity issue demonstrates that this Administration understands that criminalization has failed and disproportionately harmed Black and Latino communities. It’s extremely disappointing that despite this acknowledgment and promises made to communities — rescheduling marijuana without further action, allows criminalization to continue and leaves most of the harms caused by criminalization in place,” said Cat Packer, director of drug markets and legal regulation at the Drug Policy Alliance.

Fact: Rescheduling will not federally legalize the existing medical and adult-use regulatory programs which currently exist in 38 states or state-legal cannabis industry businesses which currently employ over 400,000 workers.

“We have patiently waited for the Biden Administration to act on their word and it’s time to move past half-measures and towards genuine reform that will impact individuals, not just business owners. We urge President Biden to align his policy with the majority of Americans who favor legalization and move to create opportunities for people of color who have been disproportionately targeted by criminalization to start and succeed in the emerging legal cannabis industry,” said Kaliko Castille, president of the Minority Cannabis Business Association (MCBA).

Fact: Rescheduling marijuana to Schedule III would permit existing cannabis companies to no longer be penalized by IRS section 280E, which prevents companies taking standard business deductions associated with the illicit sale of Schedule I or II drugs, but would not provide any tax relief or other protections specifically for small businesses.

“While rescheduling cannabis would be a step forward, it does nothing to align federal law with the 38 U.S. states which have already effectively regulated cannabis for medical or adult use. The only way to fully resolve the myriad of issues stemming from the federal conflict with state law is to remove cannabis from the Controlled Substances Act and regulate the product in a manner similar to alcohol. The vast majority of Americans live in states with laws that depart from federal law on this issue and where thousands of regulated Main Street businesses are serving the legal cannabis market safely and responsibly. It’s long past time to truly harmonize federal policy with the laws in those states,” said National Cannabis Industry Association CEO Aaron Smith.

Fact: Rescheduling would not allow legal access to state-authorized medical marijuana programs. It could, however, lead to marijuana products being prohibited as unapproved drugs by the Food and Drug Administration (FDA).

“Classifying marijuana like ketamine and steroids still conflicts with current state laws. This decision could replace our successful state policies with a system that prohibits the plant itself and only allows pharmaceutical cannabis products. We urge the Biden administration to protect marijuana consumers and prioritize existing mom-and-pop shops over pharmaceutical corporations,” said Shaleen Title of Parabola Center for Law and Policy.

Fact: Rescheduling marijuana does not qualify as the Biden Administration keeping its campaign promise to decriminalize marijuana.

“A super-majority of Americans, including majorities of Democrats, Republicans, and independents, support ending the federal criminalization of marijuana, which would not be accomplished under rescheduling, as Schedule 3 maintains federal criminal penalties for mere possession, including against those in compliance with state adult-use and medical cannabis laws. In order for President Biden to truly fulfill his campaign promise to decriminalize marijuana, it must be removed from the CSA entirely,” said Justin Strekal, founder of The BOWL PAC.

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Oklahoma Bureau of Narcotics Has Shut Down 800+ Illegal Cannabis Farms Over Last Two Years

8/31/2023

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Over the last two years, the Oklahoma Bureau of Narcotics (OBN) has shut down more than 800 unlawful cannabis farms operating under the guise of the state’s medical cannabis law, KFOR reports. The crackdowns have led to more than 200 arrests and the seizure of nearly 7,000 pounds of cannabis. 

Mark Woodward, spokesman for OBN, told KFOR that the agency’s enforcement actions are focused on “out-of-state” illegal operations that allegedly have ties to international crime networks, including groups from Russia, Bulgaria, Armenia, and Serbia. 

“There may be people who watch and say, well, what’s the big deal? It’s just marijuana. I don’t think they have the full gravity of the situation about the violent behavior, the quadruple homicides, the sex trafficking, labor trafficking, extortion, violence, arson, water and electrical theft and other issues that we’re dealing with out here with these criminal organizations here in Oklahoma.” — Woodward to KFOR 

Woodward added that the illegal operations are hurting the state’s legitimate medical cannabis businesses by driving prices down, which is leading to closures and bankruptcies.  

“And so, we’re going to do everything we can to protect the businesses while going after and sending a message to those that this is not a safe haven for your criminal organizations to come and try to hide,” Woodward said, “because we will identify them and we will shut them down.” 

Woodward indicated that OBN is currently investigating several thousand potential illegal cannabis farms throughout the state.  

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Missouri Cannabis Company Subjected to 63k-Product Recall Now Being Sued

8/31/2023

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An Arkansas medical cannabis company is suing the Missouri firm that had nearly 63,000 of its products recalled, the St. Louis Post-Dispatch reports. In its lawsuit, Dark Horse Medicinals Missouri, LLC says it purchased $325,632 worth of the now-recalled products from Delta Extractions “not knowing that the distillate was unusable in Missouri.”  

In addition to Delta, the lawsuit names SLCC; Midwest Magic Cannabis Co.; Oklahoma-based Conte Enterprise; and 10 defendants identified only as “John Doe.” The lawsuit accuses the defendants of fraud, breach of contract, and of civil conspiracy. It is asking the court for damages, and that the court pierce the corporate veil and hold John Does 1-10 “personally liable for Dark Horse’s damages.” 

The lawsuit said Dark Horse entered into a management agreement with SMA Manufacturing, which holds a medical cannabis manufacturing license and through the agreement, Dark Horse would manage and operate Coco Labs. In May, Dark Horse, through Coco, was in the market to purchase distillate for its various medical cannabis products, according to the lawsuit, and that it had acquired the distillate manufactured by Conte which had a manufacturing agreement with Delta. Dark Horse received a certificate of analysis along with its purchase that showed the distillate “net the regulator standards for cannabis products in Missouri,” according to the lawsuit.

The lawsuit claims that Dark Horse would not have purchased the products had the company known it was unusable in Missouri and that the defendants “knowingly and intentionally withheld from Dark Horse the fact that the distillate was unlawfully sourced or derived.” 

Delta is currently suing the state over the recall and suspension of its license. Prior to the recall, Jack Maritz, manager for Delta, testified to the Administrative Hearing Commission that it had used THCa from out of state, which, he argued, was allowed under previous state regulations. 

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Rep. Matt Gaetz Asked DEA for Documents & Timeline Related to Cannabis Descheduling

8/31/2023

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In a letter to Drug Enforcement Administration (DEA) Administrator Anne Milgram, U.S. Rep. Matt Gaetz (R) asked why the agency has not begun taking steps to reconsider cannabis’ status as a Schedule I drug. 

The letter notes that President Joe Biden (D) has sent a letter to the Department of Health and Human Services (HHS) and the Attorney General’s office asking for the process to begin. The letter follows Milgram’s July 27 testimony before the House Judiciary Subcommittee on Crime and Federal Government Surveillance during which she confirmed the president had sent the letter. 

“While it is reassuring that President Biden has formally requested that the process of descheduling marijuana from the list of Schedule I drugs commence, it was concerning to hear you say that the Department of Health and Human Services has not provided a timeline for sending you its descheduling recommendation based on its review. When I asked if you would encourage HHS to give you that timeline, you responded: ‘I will ask.’” — Gaetz in the letter 

In the letter, Gaetz asks Milgram to provide to the House Committee on the Judiciary the letter from Biden to HHS and the Attorney General’s office and the response from HHS regarding the timeline for rescheduling.  

Gaetz requested a response from Milgram by September 15.

Earlier this week, reports indicated that HHS has recommended DEA move cannabis from Schedule I to Schedule III under federal law, departing from many advocates’ hopes that the plant would be descheduled entirely. DEA later confirmed they had received the recommendation but it was unclear whether the agency would take action.

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U.S. Health Officials Recommend Rescheduling Cannabis to Schedule III

8/30/2023

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The U.S. Department of Health and Human Services (HHS) has officially recommended moving cannabis from Schedule I to Schedule III under the federal Controlled Substances Act (CSA), Bloomberg reports.

The recommendation comes nearly a year after President Joe Biden (D) tasked his Secretary of Health and Human Services and U.S. Attorney General with reviewing cannabis’ Schedule I status. As part of that process, HHS coordinated with the Food and Drug Administration (FDA) for a scientific review of the plant and its legal status. While historic, the HHS recommendation is non-binding and the federal Drug Enforcement Administration (DEA) will have the final say.

It was not immediately clear when rescheduling — if the DEA were to follow the recommendation — may take place but the process would likely take several months at minimum.

A DEA spokesperson confirmed to Marijuana Moment that the agency had received the recommendation from HHS this week:

“We can confirm DEA received a letter from the Department of Health and Human Services providing its findings and recommendation on marijuana scheduling, pursuant to President Biden’s request for a review. As part of this process, HHS conducted a scientific and medical evaluation for consideration by DEA. DEA has the final authority to schedule or reschedule a drug under the Controlled Substances Act. DEA will now initiate its review.” — DEA spokesperson, via Marijuana Moment

If rescheduled per the recommendation, cannabis would remain federally illegal but would be significantly easier to access for medicinal and pharmaceutical research purposes. Additionally, the shift to Schedule III would allow for tax break opportunities that are not currently available in state-legal cannabis industries.

Under the CSA, Schedule I substances are categorized as drugs with high levels of abuse potential and no medical value. Schedule III substances, meanwhile, are considered to have “moderate to low potential for physical and psychological dependence” and are currently allowed for medical use in the U.S.

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The Bahamas Government Unveils Bill to Legalize Cannabis for Medical and Religious Use

8/30/2023

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Legislation to legalize cannabis for medical and religious purposes and decriminalize the possession of small amounts of cannabis have been unveiled in The Bahamas, the Jamaica Gleaner reports. Under the law, individuals caught with less than an ounce of cannabis not used for religious or medical purposes would be subject to a $250 fine but would not be criminally charged.

Under the proposal, licenses for cultivation, retail, transport, and religious use would only be awarded to companies that are entirely Bahamian-owned, while licenses for research, testing, and manufacturing would be granted to companies that are at least 30% Bahamian-owned. The government would also create an agency to regulate the industry.

Attorney General Ryan Pinder has previously indicated that cannabis used for religious purposes could only be smoked on the premises of a licensed organization, the report says.

Other Caribbean nations have taken steps to reforms their cannabis policies. In 2018, Antigua and Barbuda legalized cannabis for medical use and in June granted Rastafari authorization to grow and consume cannabis, as their faith considers the plant sacred. Jamaica has also decriminalized possession of small amounts of cannabis.

The U.S. Virgin Islands in January legalized cannabis for adult use.

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New York Judge Reimposes Full Injunction on Cannabis Licensing

8/30/2023

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A New York Supreme Court Judge on Tuesday reversed his decision to partly lift an injunction, which would have allowed 30 cannabis businesses to move forward with their opening plans, and reimposed a hold on all licensing activity, the Times-Union reports. The reversal came after the court received an affidavit from Office of Cannabis Management (OCM) First Deputy Director Patrick McKeage that noted the 30 applicants had not completed all of the requirements to open their shops and were not “ready to open” as the OCM had previously stated.

In the ruling, Justice Kevin Bryant said the agency “submitted a list which, by their own admission, includes licensees who are still finalizing construction and whose post-selection inspections have not been scheduled or completed.”

“It is also clear that an unclear number of the sites have not been inspected ‘to ensure (the site) meets all the public health and safety requirements in the Cannabis Law and associated regulations.’ It is not clear to this court whether any of the 30 identified licensees have completed all post-selection requirements and inspections and it should be clear that those who have not, should not have been included on the list submitted to the court as set forth in the prior order.” — Bryant, in the order, via the Times-Union  

The lawsuit, filed by four service-disabled military veterans, argues that OCM created a licensing system that runs afoul of New York‘s adult-use cannabis law and improperly limits 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.   

The injunction was first imposed on August 7 and was extended on August 18.

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Alabama Cannabis Regulators Plan to ‘Start Back at Square One’ in Licensing Process

8/30/2023

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The Alabama Medical Cannabis Commission (AMCC) intends to “start back at square one” in the medical cannabis licensing process, the agency told a judge on Monday, according to the Alabama Political Reporter. The comments came during a hearing in court where the agency was defending a lawsuit claiming it had violated the state’s Open Meetings Act.  

During the hearing, the AMCC and plaintiffs in the case agreed to extend a temporary restraining order prohibiting the commission from moving forward with its licensure process until September 6, while preserving appeal deadlines for applicants. Mark Wilkerson, AMCC’s lead counsel in the suit, told Montgomery Circuit Judge James Anderson that the commission intends to reissue its own administrative stay at its August 31 meeting and then start the licensing process over again.

Wilkerson said that when the licenses are awarded the AMCC intends to complete the process in an open meeting – the commission’s last two attempts to issue licenses was done largely in executive session. The commission’s last vote had included secret ballots used to nominate applicants in executive session, which triggered the lawsuit. 

Medical cannabis company Alabama Always subsequently made a new filing following the hearing, saying the AMCC’s process was “unsalvageable.” In that filing, the plaintiffs contend that the system the AMCC has created for awarding licenses violates the contested case provisions of the Alabama Administrative Procedure Act and that the commission has failed to adopt rules and procedures for administration of its licensure program. 

The court did not rule on the new filing. 

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Texas AG Commissioner Says Medical Cannabis Reforms Would Pass If Bills Could Get to Floor

8/29/2023

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In an interview with Big Country Politics, Texas Agricultural Commissioner Sid Miller (R) said he believes that were comprehensive medical cannabis reforms to get a vote in the state legislature, they would get support from “70% to 80%” of lawmakers because “we have such good science on it.”  

“Now, it’s not speculation anymore. When we started with speculation, we thought, ‘Well, that’ll lead to recreational use or more drug use,’ but it’s not. It’s a plant derivative. Look. Medical marijuana is not nearly as addictive as some of the prescription drugs we use now. Hydrocodone, Oxycontin, Fentanyl, you know, all these narcotics that we prescribe. This is a plant-based drug that relieves pain and suffering, and we need… if it’ll help somebody and getting them help.” — Miller to Big Country Politics 

Miller, who last year penned an op-ed calling for the end of cannabis prohibition in the state and expansion of its medical cannabis program, added that he still does not support “full-fledged recreational use” of cannabis.  

“But I am for medical use for compassionate use for anything. We have so much good science now. And we know what diseases it can treat, yet our legislature picks winners [and] losers. If you’ve got this disease, you can get treated, if you got this disease, and cannabis will help if you can’t get treated,” he said in the interview. “So, we need to get out of that business. We need to let the doctor-patient relationship let those doctors make those medical decisions and not some bureaucrat or some politician.” 

Miller also noted that many of the state’s hemp producers are pivoting from CBD oil to fiber production, which he described as the “long-term place” for hemp. 

“…It fits traditional farming much better. It’s not as labor intensive. One farmer can grow a whole pivot of fiber hemp harvested just like we do, put it on a truck, and send it to the mail,” Miller explained. “What they do is they make fiber out of it, and not CBD. All that fiber has turned into over 2,000 products. They can be hempcrete building blocks; it can be rope, canvas, car interiors. The list goes on and on and on.” 

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Arkansas Medical Cannabis Sales Rising; Prices Per Pound Falling

8/29/2023

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The price of medical cannabis in Arkansas was $4,545 per pound in June, down from an average of $5,466 for all of 2022, according to Arkansas Department of Finance & Administration (DFA) data outlined by Arkansas Business. In 2021, the average price per pound was $6,565, the report says.  

In 2022, medical cannabis dispensaries in Arkansas sold an average of 4,212 pounds of cannabis per month; in June, they sold 5,149. Under Arkansas’ medical cannabis law, the number of dispensaries is limited to 40.   

A report in April found that medical cannabis sales in Arkansas during the first quarter of the year were up 7.14% compared to the same quarter of 2022, according to DFA data. 

In 2022, medical cannabis sales in Arkansas reached a record high of $276 million, which is 4.3% higher than 2021’s total of $264 million. Sales this year are on track to surpass the totals of both 2021 and 2022, having surpassed $140 million through the first six months of this year, according to state data outlined by Talk Business & Politics.   

As of August 19, there were 93,524 active medical cannabis patients in Arkansas, according to DFA data. That total is down from the 93,862 active medical cannabis ID cardholders in the state reported by the state in June. 

Last November, Arkansas voters rejected a ballot measure to legalize adult-use cannabis by a 56%-44% margin. 

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Elmira College Partners with Green Flower for Cannabis Certificate Programs

8/29/2023

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New York’s Elmira College is partnering with cannabis education company Green Flower to offer three online cannabis certificate programs, WETM reports. The programs include Cannabis Cultivation Specialist, Cannabis Retail Specialist, and Cannabis Extraction and Product Development Specialist. 

Each certification costs $800 when paid in full, but students may also choose a payment plan option. Each program takes nine weeks to complete. Financial aid is not available because cannabis remains outlawed federally.  

Daniel Kalef, chief growth officer at Green Flower, told WETM that the programs are “designed to train people to get jobs in the industry right away.” 

“One thing we’ve seen is that typically, rates and wages are about 20% higher in the cannabis industry compared to something similar in another industry, which is really fantastic. When you get to management levels in any of these areas, six figures is not uncommon at all.” — Kalef to WETM 

Kalef added that the cannabis industry is “the fastest growing job market in the country” but that turnover in the industry is “tremendous, because too many people come in not knowing anything really.”   

With the Elmira partnership, Green Flower has partnerships with at least 19 colleges and universities throughout the U.S., according to the company’s website.  

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