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Big Plan Holdings Partners With Tennessee-Based Evelyn Capital In Strategic Acquisition Of Ascend Wellness Holdings’ Location In Monaca, Pennsylvania

8/28/2023

Nashville, Tennessee, August 23rd, 2023 – Big Plan Holdings (BPH), a diversified family holding company with cross-sector investments in cannabis, real estate, music, entertainment, professional sports, and hospitality, has announced a strategic partnership with Tennessee-based Evelyn Capital to acquire the 1.25 acre, Monaca, Pennsylvania ‘Ascend Wellness Holdings’ AWH – (CSE;AWWH.U;OTCQX;AAWF) vertically integrated medical cannabis retail operation.

The acquisition expands upon the regional footprint and suite of services of Big Plan Holdings (BPH) in partnership with one of the nation’s leading multistate operators (‘MSOs’), publicly traded on the Canadian Stock Exchange.

In commenting on the acquisition of the tenant retail building located in Monaca, Pennsylvania, totaling $3.25 million, Josh Joseph, Co-Founder and CEO of Big Plan Holdings, stated that, “We are pleased to partner with fellow Tennessee-based and entrepreneurial real estate and investment firm, Evelyn Capital, in this exciting acquisition in Pennsylvania, further expanding our Northeast regional push and doing so with such an impactful brand as Ascend Wellness Holdings. AWH is tactically positioned to continue its dynamic trajectory in the cannabis space; a vertically-integrated operator with a footprint in seven of the most attractive states in the country for the industry. They are one of the stronger operators in the industry and BPH has long been a strong supporter of AWH and their management team.”

Founded in 2018 and presently hosting assets in Illinois, Michigan, Maryland, Ohio, Massachusetts, New Jersey and indeed Pennsylvania, Ascend Wellness Holdings owns and operates state of the art cultivation facilities, grows award-winning strains, and produces a curated selection of cannabis products.

Taylor Preston, Principal at Evelyn Capital, added that, “We share the enthusiasm of our partners at Big Plan Holdings in the announcement of this strategic acquisition, executed with a significantly increased cap rate, in large part due to BPH’s longstanding relationship with Ascend Wellness Holdings, but one example of the conducive environments for growth which BPH creates for their partners.”

The timing of this announcement is fortuitous; on Thursday, August 17th, 2023, five U.S. State Senators introduced Senate Bill 846, bipartisan legislation aiming to legalize the recreational use of cannabis for Pennsylvanians 21 years of age and older.

Eric Russell, Chief Investment Officer (CIO) at Big Plan Holdings, added that, “We are pleased to bring our experience and resources at this timely juncture to Pennsylvania and on the sidelines of the liberalization of the state’s marketplace. With combined commercial real estate (CRE), development and transactions totaling $2.5 billion from inception to present date, with transaction locations in upwards of 40+ states, our success lies in our vigilance and versatility – in seeking out mutually beneficial partnerships that allow for greater market penetration opportunities, service delivery, and sustainable business growth.”

About Big Plan Holdings

Big Plan Holdings (BPH) is a Nashville, Tennessee-based family-office, directed by Josh, Tara, Sydni, and Sophie Joseph, with diversified investments in cannabis, real estate, music, entertainment, professional sports, fashion, and hospitality, among myriad strategic investments across the United States and internationally.

BPH also hosts a philanthropic family foundation, The Joseph Family Foundation, with several different touch points of thematic, statewide, national, and global focus.

For more information, please visit http://bigplanholdings.com.

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New York Judge Lifts Injunction for 30 Cannabis Licenses But About 400 Remain in Limbo

8/28/2023

A New York judge on Friday partly lifted the injunction imposed against state regulators issuing new cannabis licenses, WTEN reports. The ruling by Supreme Court Justice Kevin Bryant affects just 30 licenses that were deemed by the Cannabis Control Board as “ready to be open.”

The decision still leaves about 400 licenses in limbo.

In a statement following Bryant’s decision, the New York Office of Cannabis Management (OCM) called the ruling “a disappointment” but that the agency is “committed to working with the Cannabis Control Board to find a way forward that does not derail our efforts to bring the most equitable cannabis market in the nation to life.”

The lawsuit, filed by four service-disabled military veterans, argues that OCM created a licensing system that runs afoul of the state’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.

Another hearing on the lawsuit is scheduled for September 15. Regulators are expected to open the window for cannabis licenses for non-equity applicants on October 1.

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Study: Companies Misstate Hemp-Derived THC Dosages & Don’t Actually Test for Impurities

8/28/2023

A study published last month in the Journal of Cannabis Research suggests that the majority of hemp-derived delta-9 THC products do not state the product’s correct dosage of the cannabinoid on the package and that most of the companies that provided laboratory reports did not actually check for impurities.

The study included 53 hemp-derived delta-9 THC products. The products were sent to InfiniteCAL laboratory which tested potency, the presence of impurities, and whether the delta-9 THC present was natural or converted from CBD.

The presence of age verification, company-conducted testing, and warning labels was also considered.

The researchers found that 96.2% of products tested were under the legal delta-9 THC limit but that 66% differed from their stated dosage by more than 10%. In all, 84.9% of the products included a lab report but 71.1% of those did not check for impurities. Nearly half – 49% – of products converted CBD to THC to achieve the delta-9 levels.

“Despite some positive findings, the results show that hemp delta-9 THC companies offer inaccurately labeled products that contain more THC than would be allowed in adult-use states. This raises serious issues around consumer safety, and consent when consuming intoxicating products. Steps to boost accountability for companies must be considered by either the industry or lawmakers if intoxicating hemp products are to remain on the market safely.” — “Potency and safety analysis of hemp delta-9 products: the hemp vs. cannabis demarcation problem,” Journal of Cannabis Research, July 23, 2023

Additionally, just 15.1% performed age verification at checkout.

The products tested for the study included 38 gummy products, three tinctures, one vape pen, two cookies, one brownie, one chocolate product, three candy products, three beverages, and one rice krispy product. The 53 products came from 48 different brands, which the researchers estimate represented 40% of the total hemp delta-9 THC market, as of April 2022. Manufacturers came from Arizona, California, Colorado, Florida, Georgia, Indiana, Massachusetts, Michigan, Minnesota, Missouri, North Carolina, New Jersey, Nevada, New York, Oregon, Tennessee, Texas, and Wisconsin.

Companies with a TrustPilot rating lower than 4 or with a Better Business Bureau grade below B were excluded, as were any companies that didn’t ship to California and any products that didn’t mention a specific dosage of THC.

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Oregon Appeals Court Orders Stay of Fungus Testing Rule

8/28/2023

The Oregon Court of Appeals on Friday suspended the state’s cannabis testing requirements for the fungus aspergillus, Willamette Week reports. The lawsuit was filed in July by the Cannabis Industry Association of Oregon, Southern Oregon Family Farms, and Cannessentials Farm who claimed the testing rules are overreaching and harmful to the industry.

The new rules took effect on March 1 and since then, many organic cannabis cultivators in the state have failed the aspergillus testing. Cannabis that fails the test is subject to recall.

State regulators claim that inhalation of the fungus has been shown to be dangerous to immunocompromised people and that “adopting additional rules would increase public health and safety on cannabis items sold to consumers and puts Oregon on the same national standard as other states,” the report says. The Oregon Health Authority (OHA), however, has acknowledged that there’s no proof that cannabis containing aspergillus has sickened any Oregonians.

“The court has considered the irreparable harm to petitioners in the absence of a stay, petitioners’ likelihood of success on the merits, and the risk of harm to the public is a stay is granted and, in light of those considerations, concludes that a stay of enforcement of the Aspergillus Testing Rule is appropriate in this case.” — Oregon Court of Appeals ruling via Willamette Week

A spokesperson for the OHA told Willamette Week that the agency is “reviewing the decision and will be discussing next steps in the coming days.”

Kevin Jacoby, the lawyer representing the cannabis businesses, told Willamette Week that he expects regulators to create new rules that set similar testing requirements but are not subject to the stay.

“Oftentimes they see the writing on the wall and will rather quickly move to rulemaking that will change the rule,” Jacoby told Willamette Week. “Once they change the rule, that would moot the judicial review proceeding regarding the validity of the rule. But new rulemaking would likely take six to eight months.”

He added that the upcoming outdoor cannabis harvest is “not under threat.”

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Son of Jack Herer Sued by Former Business Partner

8/25/2023

Daniel Herer, the son of cannabis activist Jack Herer, is being sued by a former business partner who says Herer “repeatedly reneged on agreements,” according to a complaint filed in Nevada state court. Herer, in his own filing, denied the charges in the lawsuit, and argues that the plaintiff, listed as Herer Brands Inc, is infringing on intellectual property it doesn’t own.

Herer Brands was co-founded by Daniel Herer and Dennis D’Alessio in 2002, the complaint says.

In the complaint, Herer Brands contends that Herer attempted to capitalize on his father’s name after his death in 2010 and began perusing investors; however, the lawsuit claims Herer embellished “his own supposed business skills.”

“Unfortunately, due to and as a result of his misrepresentations and a series of bad decisions, these ventures incurred millions of dollars in debt, and the deals stalled or failed. Daniel, rather than deal with his problems directly and forthrightly, repeatedly reneged on agreements and continued to seek new investors and/or partners to payoff and replace the old ones, not unlike an ongoing Ponzi scheme.” — Herer Brands vs. Daniel Herer

According to the lawsuit, HBI Investor Group in July performed a due diligence check on Herer, who had signed a deal with the company to become its chief business development officer. During the 90-day due diligence period, HBI “determined that there were issues with the Jack Herer Assets that negatively impacted their value, and that the venture’s business prospects were not as strong as Daniel had represented” and, as a result, the parties “negotiated and agreed to adjustments in the HBI Investor Group’s investment and equity share in the venture,” according to the lawsuit.

Herer denies all of HBI’s allegations outlined in the lawsuit, and in his counterclaim contends that D’Alessio is improperly using the Herer name and trademarks and “never paid the $1,500,000 base capital investment, so the intellectual property was never transferred out of Herer Media & Publishing, Inc.”

HBI is seeking compensatory damages and an injunction to prevent Herer from competing against HBI or disparaging the firm. Herer is also seeking compensatory damages.

The lawsuit was filed in the U.S. District Court of Nevada.

WeedWeek first reported on the lawsuit.

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Minnesota Collects About $600K in Taxes from First Month of THC Tax

8/25/2023

Minnesota collected nearly $600,000 in tax revenues from cannabis-infused gummies and drinks last month, according to state Department of Revenue data outlined by CBS News. The agency indicated it had received more than $594,000 from 571 businesses from July sales of cannabis products, which includes hemp-derived products that contain THC sold at retailers throughout the state.

If the early figures are any indication of the state market, annual sales of the products could surpass $70 million, amounting to $7 million annually in tax revenues for the state.

The state’s legalization law imposes a 10% gross receipts tax on the sale of products that contain THC, including hemp products that were legalized a year ago but hadn’t been assessed a separate tax, MPR News reports.

Adult-use products are not yet available in the state and might not be for at least a year, according to MPR News. Adult-use cannabis sales in the state are projected to bring in $42 million from the gross receipts tax in the first two years but total as much as $120 million in the two years after that. Medical cannabis sales are not subject to any taxes and will not be taxed once the adult-use market rolls out.

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St. Cloud University Partners with Green Flower on Cannabis Education Program

8/25/2023

Minnesota’s St. Cloud State University (SCSU) is the latest college to partner with cannabis education company Green Flower to offer a certificate-based cannabis education program, KNSI reports. The university is the first in the state to offer a cannabis curriculum.

Minnesota’s legislature-approved adult-use cannabis program took effect August 1.

In a statement, SCSU President Robbyn Wacker said the endeavor is designed to “meet workforce demand to provide educated professionals in this quickly evolving industry.”

“The cannabis industry is growing at an unprecedented rate and the demand for skilled professionals is higher than ever.” — Wacker via KNSI

The courses take about six months to complete and include: Cannabis Agriculture and Horticulture, Compliance and Risk Management, the Business of Cannabis, and Cannabis Healthcare and Medicine.

On its website, SCSU notes that the cannabis industry has seen a 27% annual job growth over the last five years. The university recently announced it will no longer admit students to 70 programs, bringing its offerings down to 239 program areas, according to a KSTP report.

Each certificate program is entirely online and costs $2,950. The classes start September 6 and November 6.

Green Flower now has partnerships with at least 18 colleges and universities, according to the company’s website.

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Maryland Town Headed to Mediation Over Profits From Its 5% Stake In Trulieve

8/24/2023

The town of Hancock, Maryland is headed to mediation with multi-state cannabis company Trulieve over the profits of its 5% equity stake in the company, the Washington Post reports. The town, in 2015, entered into the unique agreement with Harvest Inc., in exchange for a medical cannabis license; however, Trulieve acquired Harvest this year in a $2.1 billion deal.

During a recent Facebook chat with residents, Town Manager Michael Faith said the town and Trulieve disagree “on what constitutes a profit,” prompting the mediation.

Steve White, then-chief executive of Harvest and now president of Trulieve, told the Post that Hancock “will receive what we have agreed accounts for a 5% equity interest in the business” and “they will receive more money if the entity in Maryland does better.”

In an email to the Post, Faith said the town has received a total of $703,193.96, with a $500,000 payment made in July 2021. During one of the town’s prior negotiations with Trulieve, a former mayor said, Hancock asked for $50,000 in annual payments, and, according to Faith, payments of $50,000 were made in July 2021 and March 2022.

The town has also lost about $600,000 plus interest in federal grants due to the deal – the government reclaimed the funds over concerns about giving tax dollars to a town that is involved in a federally outlawed enterprise, namely the cannabis trade.

Hancock officials have not provided an estimate of what they believe they are owed by Trulieve. The mediation is set for August 30.

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Pennsylvania Vape Shop Sues County After Hemp-Derived Cannabis Products Seized Without Warrant

8/24/2023

A Lancaster, Pennsylvania vape shop is suing the district attorney and other law enforcement officials claiming they searched the business without a warrant and seized legal hemp-derived THC products, FOX43 reports. The lawsuit by Smooth Vape, LLC names District Attorney Heather Adams, a lieutenant with the Lancaster County Drug Task Force (LCDTF), three unnamed members of the LCDTF, and Lancaster County itself.

The lawsuit alleges that Adams ordered the LCDTF to carry out raids on smoke shops and vape shops and that four members of the LCDTF entered the Smooth Vape shop and produced a memo – not a search warrant – from Adams declaring that the officers would be seizing “all products in plain view labeled or advertised as containing Delta-8 THC or Delta-10 THC.”

Employees claim the officers gave them the option to either surrender to the search and seizure or have the shop shut down. Jerad Najvar, an attorney representing Smooth Vape, told FOX43 that the raid “came as a complete surprise” to his client.

“These products are expressly recognized as legal under Pennsylvania law. For years these products have been sold openly.” — Najvar to FOX43

In all, the LCDTF seized tens of thousands of dollars’ worth of merchandise from the store which resulted in a huge loss for the business owner. The lawsuit is seeking compensatory and punitive damages for violations of the plaintiff’s constitutional rights; a declaratory judgment that hemp-derived cannabis products that contain no more than 0.3% delta-9 THC, including products without any delta-9 THC, are not subject to enforcement under the Pennsylvania Controlled Substance Act; reasonable attorneys’ fees and costs; and any other relief that the court deems just and appropriate, the report says.

The enforcement action was announced by the LCDTF in June and agents ultimately seized nearly $300,000 worth of product from 25 stores throughout Lancaster County.

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Ohio Gov. and Health Commissioners Oppose Cannabis Legalization

8/23/2023

Ohio Gov. Mike DeWine (R) has come out in opposition of adult-use cannabis legalization in the state, telling the Governor’s Executive Workforce Board last week that the reforms would “be a real mistake,” WSYX reports. On Tuesday, the Ohio Association of Health Commissioners (AOHC), which represents Ohio’s 112 local health departments, also urged citizens to vote “no” on the proposal.

Ohio Secretary of State Frank LaRose last week confirmed that the campaign seeking to legalize cannabis for adult use had gathered enough signatures to put the issue on November ballots.

DeWine said he opposes the reforms due to the “unmitigated disaster” he heard about from physicians and law enforcement in Colorado post-legalization, and that today’s cannabis products are “not your grandparents’ marijuana.”

Tom Haren, chair of the Cannabis Law Group in Cleveland and spokesman for the legalization campaign pushed back against DeWine’s comments, telling WSYX that “The governor must not have spoken to anybody from Colorado recently, because what I can tell you is their program is a huge success.”

“I’ll tell you why it’s not your grandfather’s marijuana: your grandfather’s marijuana wasn’t tested in a pharmaceutical-grade testing lab. It wasn’t produced in a GMP (Good Manufacturing Practice) quality cultivation facility, right? It wasn’t subject to a statewide rigorous regulatory framework.” — Haren to WSYX

In a press release announcing the health commissioners’ opposition, authored by Protect Ohio Workers and Families which opposes the legalization campaign, AOHC Executive Director Beth Bickford argued that “Making marijuana more accessible through legal recreational use and retail sales hurts Ohio, creates serious new risks for children’s health” and makes “workplaces and highways less safe.”

“Public health departments advance policies and resources that help all Ohioans live healthier lives and that includes helping them avoid and overcome drugs of addiction like marijuana,” she wrote. “With Ohio’s rates of opiate abuse and overdoses still among the highest in the country, we need to be helping Ohio find solutions to addiction, not facilitating it or the interests of an industry that profits from it.”

Haren noted that Ohio already has an adult-use market – the illicit market – and that street dealers “are happy to sell to the kids.”

“An adult use program is going to benefit almost everybody in the state, whether you’re participating in the market, whether you finally have an alternative to the black market to purchase adult use cannabis products,” he told WSYX. “Everybody lives in a community here in Ohio, and this additional tax revenue that we’re going to generate under our proposal is going to be reinvested back into our local communities. So we think this is going to be a great thing for the entire state.”

The Ohio Children’s Hospital Association and the Ohio Adolescent Health Association also oppose the reforms.

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TILT Holdings Cuts Ties With Three Black- and Woman-Owned Brands

8/23/2023

Phoenix-based TILT Holdings unexpectedly cut three cannabis brands from its portfolio last week in addition to pausing its partnership with the New York Shinnecock Nation, Debra Borchardt reports for Green Market Report.

The three brands include Black Buddha Cannabis, a multi-state social equity cannabis brand founded by Roz McCarthy, who is also the founder and CEO of Minorities for Medical Marijuana Inc.; Her Highness, a woman-owned and female-centric New York brand; and Highsman, a cannabis lifestyle brand founded by former pro football player Ricky Williams, the report said.

TILT Holdings’ interim CEO Tim Conder said in an earnings call that the move was part of “evaluating and rationalizing our brand and product portfolio” as TILT aims to “refine” its strategy.

“In doing so, we came to the hard realization that Her Highness, Highsman, and Black Buddha are not the right long-term fit given the direction we are headed, and we really are not the right partner for them given the support they need to build their brands. We are working collaboratively with these brands’ respective teams through this transition to ensure that we support them the best way we can as they offboard from our platform.” — Conder, via Green Market Report

McCarthy said she was surprised by the sudden shift because Black Buddha’s partnership with TILT was formed just last year. Additionally, McCarthy said the announcement came during a capital raise for the company and that the news had driven away at least one potential investor.

“You got rid of the woman-owned, the black-owned, and then the woman- and black-owned brand,” she told Green Market Report. “How do I take that? I never want to hear from Tilt that they are focused on social equity.”

TILT also announced it was putting on hold its partnership with the New York Shinnecock Nation due to “challenges,” including “unlicensed operators selling cannabis on Shinnecock land and the inability to bring in cannabis products from New York state license holders or sell cannabis products to New York state license holders.” Conder said the company would evaluate the partnership but, for now, “construction has been put on hold.”

But the Shinnecock Nation told Green Market Report following the announcement that the dispensary project would “move forward” despite TILT’s disengagement.

“Much like New York state, we as a tribal nation are addressing the unlicensed operators and have made significant progress regarding illegal sales and delivery,” the Council of Trustees, Shinnecock Nation Tribe, said in a statement. “This matter has not caused Shinnecock to delay our development to have the first tribally owned legal adult-use dispensary on our sovereign land in Eastern Long Island.”

Editor’s note: A previous version of this article incorrectly referred to all three brands dropped by TILT as “social equity” brands, implying that all were participants in state social equity programs. We regret the error and thank Black Cannabis Magazine for bringing it to our attention.

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Alabama’s Plan to Void and Reissue Medical Cannabis Licenses Attracts Another Lawsuit

8/23/2023

The Alabama Medical Cannabis Commission (AMCC) is set to, again, void and revoke the licenses it awarded two weeks ago with plans to re-award them during the same meeting without going into an executive session, according to a court filing outlined by the Alabama Political Reporter. The use of the executive session in awarding the previous round of licenses is the subject of a lawsuit brought by several cannabis companies.

The AMCC on Monday was also hit with a lawsuit by Verano Holdings which claims that the agency had no right to revoke any licenses, including the one it had awarded the company in the first round of licensing in June, according to an Alabama Reflector report. Verano claims the agency’s move to rescind and re-award the licenses “both exceeds and conflicts with the authority provided to it by the Alabama Legislature.”

“Regardless of the commission’s intent when it decided to issue the stay and subsequently ‘re-award’ the licenses, its decision to ‘void’ previously awarded licenses without following the Legislature’s – and its own – clearly established rules and regulations, exceeds and violates the statutory authority it has been granted, violates its own rule, and is clearly erroneous. As such, Verano Alabama’s awarded license remains valid.” — Verano, in the lawsuit, via the Reflector

Because Verano was not included in the second round of licensing, the company is not set to receive a license in the upcoming meeting which will see the licenses again revoked and re-awarded.

It’s also unclear whether the AMCC’s approach will satisfy the plaintiffs in the lawsuit concerning the agency’s use of the executive session. The companies in that lawsuit allege that the agency violated the state’s open meetings law with its use of the executive session during the previous awarding of licensing. John McMillan executive director of the AMCC had defended the board’s use of the session, saying it “had a number of pass, fail issues, background checks, and issues” that were all part of the decision to hold the closed-door session. A judge put a hold on the state’s medical cannabis program last week due to the lawsuit.

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Medical Cannabis Sales in Arizona at Lowest Point Since Launch of Adult-Use Market

8/23/2023

Medical cannabis sales in Arizona in May fell to their lowest point since the launch of the adult-use market in January 2021, the AZ Mirror reports. Adult-use sales totaled $82.9 million, while medical cannabis sales reached $28.3 million, according to state Department of Revenue (ADOR) data outlined by the Mirror.

Since the launch of the adult-use market, medical cannabis sales in the state have topped $1.4 billion, while adult-use sales have surpassed $2 billion.

Adult-use sales were also initially estimated by ADOR at more than $100 million in March, but in May the agency revised that total down by about $1 million in May, and, at the same time, increased sales estimates in April from $86.5 million to $90.1 million, the report says.

Combined cannabis sales in the state are still regularly topping $100 million in the state but in July 2021 medical cannabis sales fell below $40 million for the first time and have never recovered. According to ADOR data, as of July, there were 126,938 qualifying medical cannabis patient cardholders, down from 127,288 in May and less than half of the 299,054 qualifying patients reported in January 2021.

So far this year, the adult-use cannabis tax has generated about $182.3 million for the state, which has already surpassed 2022’s total of $132.8 million.

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New Missouri Cannabis Rules Require Testing Labs to Double-Check Each Other’s Work

8/22/2023

New rules implemented in Missouri allow regulators to instruct the state’s certified cannabis testing laboratories to double check the work of other labs – an effort to cut down on so-called ‘lab shopping,’ the Missouri Independent reports. Under the regulations, the state will, up to 10 times a year, instruct labs to test cannabis samples tested by another lab. Then the state will review the test results to make sure they have similar results in THC potency, and that one lab isn’t passing a sample for pesticide residue while another one is failing it.

Kim Stuck, CEO of the cannabis and psychedelics compliance firm Allay Consulting, told the Independent that lab shopping “has been an issue in the industry from the beginning” and that she hasn’t “seen any state really make sure that those testing labs are getting the results they’re supposed to be getting, not yet at least.”

In an interview with the Independent, Anthony David, owner and COO of Green Precision Analytics Inc., pushed back on the rule, arguing that by gathering 10 tests a year for 10 labs – 100 total samples – is “nowhere even close to enough data to know whether someone is an outlier, or whether they’re testing in regulation.”

“Yes, we all want better ways to test. We all want methods that are validated and that everyone can use across the entire United States and testing laboratories. But it’s an obtuse way of thinking for the state to think that they can do it.” — Davis to the Independent

David added that similar rules in Colorado and California, which require the interlaboratory testing twice per year, have done little to stop lab shopping by cannabis companies and that Missouri’s regulations are just another unnecessary hurdle and cost to operators.

Earlier this month, The Missouri Division of Cannabis Regulation recalled nearly 63,000 cannabis products produced by Delta Extraction; however, the recall was not linked to failed testing, rather that the products were not tracked through the state’s seed-to-sale tracking system.

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Ohio Cannabis Legalization Question Approved for November Ballots

8/22/2023

Ohio voters will decide whether to legalize cannabis for adult-use in the state in November. Last week, Secretary of State Frank LaRose confirmed the campaign had gathered enough signatures to put the issue on ballots.

Late last month, advocates had fallen short of the signature goal but were able to gather an additional 679 valid signatures ahead of an August 4 deadline. In all, the Coalition to Regulate Marijuana like Alcohol submitted 127,772 valid signatures.

In a Facebook post, coalition spokesman Tom Haren said advocates “are grateful to the thousands of Ohioans” who backed the proposal and that the group is “excited” to bring the proposal to voters.

Ohio voters in 2015 rejected a proposal by ResponsibleOhio to legalize both medical and adult-use cannabis in the state. That proposal was marred by concerns that the proposal would create a monopoly in the state’s cannabis industry.

According to a study published this month by Ohio State University researchers, adult-use cannabis sales in the state could generate between $275 million and $403 million by the fifth year of operations.

State lawmakers have also introduced legislation to enact the reforms, but that bill has not been introduced in the full House and remains in the chamber’s Finance Committee. It’s unlikely to see any movement before November’s vote.

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Montana Fish and Wildlife Commission Funding Buoyed by Cannabis Tax Revenues

8/22/2023

The Montana Fish and Wildlife Commission last week approved a spending plan that, for the first time, includes funding from state cannabis taxes, the Bozeman Daily Chronicle reports. The cannabis tax contributions have buoyed the account to about $1.13 million; typically, the commission is funded by contributions by residents who check off the fund on their state income tax forms, which usually generates between $30,000 and $40,000.

The state legalization law requires that 4% of cannabis-derived sales taxes are used for nongame wildlife programs. Montana collects a 20% tax on adult-use cannabis sales and a 4% tax on medical cannabis sales.

Montana Fish, Wildlife and Parks wildlife division administrator Ken McDonald told the commission that the six-figure totals are a “really a nice infusion to help with management and conservation of a significant number of species” in the state.

The work plan includes habitat restoration and conservation work officials hope will keep “species of great conservation need” under state authority, rather than see those species become endangered, McDonald said.

McDonald identified two species – the pygmy rabbit and pinyon jays – as having been petitioned for listing under the Endangered Species Act and the commission will use some of the funds to “help provide and improve habitat for these species,” he said. The work plan also includes a project to monitor bat populations for white-nose syndrome.

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New York Judge Extends Injunction Against Processing and Licensing New Cannabis Retailers

8/21/2023

A New York judge on Friday ruled that the state Office of Cannabis Management (OCM) cannot process or approve any pending Conditional Adult-Use Retail Dispensary (CAURD) licenses pending the outcome of a hearing this week, Spectrum News reports. The injunction was first imposed on August 7 and applies to all licenses new or pending on that date.

The lawsuit, filed by service-disabled military veterans, argues that OCM created a licensing system that runs afoul of the state’s adult-use cannabis law and improperly limits initial licenses to people with cannabis convictions rather than a wider category of social equity applicants. 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.

In a statement, the veterans said the legal fight is about “equal access to this new and growing industry.”

“We believe in a robust, accessible, and thriving adult-use cannabis sector for New York State and today’s decision-by correctly recognizing the irreparable harms we are facing through the Board’s and OCM’s failures to follow the law-will help put the State back on track toward achieving this goal. OCM has resoundingly failed to create the legal cannabis market envisioned by New York’s Marihuana Regulation and Taxation Act (MRTA), in large part by keeping licenses out of the hands of service-disabled veterans and other minority groups the law prioritizes. Every day that the adult-use program was limited to only the CAURD program was another day the MRTA-designated priority groups and New York State farmers were left out in the cold. We remain steadfast in our responsibility to fight for all the social equity priority groups being overlooked right now by the OCM through the CAURD program.” — The plaintiffs, in a statement, via Spectrum News

Officials plan on opening a licensing application window for service-disabled veterans in October, Law.com reports. The action would likely end the lawsuit and associated injunction.

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Cannabis Tax Revenues Outpace Other ‘Sin’ Taxes in Colorado

8/21/2023

Cannabis tax revenues in Colorado are outpacing those of cigarettes, and other tobacco and nicotine products, and alcohol, according to an August 16 analysis from the Colorado Legislative Council Staff (LCS). In the 2022-2023 fiscal year, Colorado collected $282.3 million in cannabis tax revenue, compared to $233.9 million from cigarettes, $60.5 million from tobacco products, $56.4 million from nicotine products, and $56.1 million from alcohol.

Adult-use cannabis sales in the state carry a 15% excise tax, 15% special sales tax, and 2.9% general sales tax; the general sales tax also applies to medical cannabis sales.

Colorado cannabis taxes are used for a number of programs, including:

$55.9 million for school construction;
$52.4 million for school funding;
$30.7 million for the general fund;
$21.9 million got local governments;
$16.6 million for substance use disorder services;
$15.3 million for affordable housing construction grants and loans;
$15 million for school health and professionals grant program;
$6.1 million for mental health services;
$4.4 million to combat the illicit market and for the state toxicology lab;
$1.2 million for pesticide control;
$1.1 million for a cannabis impaired driving awareness campaign;
$1 million for school bullying prevention and education.

Additionally, the revenues are distributed among state agencies including:

$57.5 million for the Department of Human Services;
$23.6 million for the Department of Public Health and Environment;
$17.5 million for the Department of Local Affairs
$11 million for the Department of Higher Education;
$7.6 million for the Department of Public Safety;
$14.1 million for “other,” which includes a number of smaller agencies.

The state has seen its cannabis-derived tax revenues from their fiscal year 2020-2021 peak of $425 million to $366 million in fiscal year 2021-2022 and $282 million in fiscal year 2022-2023.

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Tilray Acquires Truss Beverage Co. From Molson Coors Canada

8/21/2023

Cannabis company Tilray Brands Inc. last week acquired Truss Beverage Co. from Molson Coors Canada. Tilray said the deal positions it as a “leader in adult-use cannabis beverages in Canada, with a combined pro-forma market share of about 36%.”

In a statement, Blair MacNeil, president of Tilray Canada, said the “acquisition further strengthens Tilray’s number one cannabis market share position in Canada and positions the company at the forefront of the adult-use beverage sector.”

“We are excited to build upon our leading portfolio of beloved cannabis brands and to further diversify our product offerings while broadening our consumer reach and enhancing consumer’s lives.” — MacNeil in a press release

The company added that, in Canada, cannabis beverages are a nearly $100 million sector and that they are expecting “the regulatory landscape for beverage distribution to evolve, with authorities re-evaluating their consumer policies.”

Tilray’s expanded cannabis portfolio now includes the beverage brands XMG, Mollo, House of Terpenes, and Little Victory.

Tilray had been a part owner in the beverages firm, but the deal saw the company acquire the remaining 57.5% equity ownership in the brand.

The company estimates that, in Canada, there are more than 10.6 million potential cannabis beverage customers that remain untapped.

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Germany’s Cabinet Passes Adult-Use Cannabis Reforms

8/18/2023

Germany’s cabinet on Wednesday passed a bill to legalize adult cannabis use and cultivation, Reuters reports. The measure still requires approval from parliament.

Under the proposal, adults would be allowed to possess up to 25 grams, grow up to three plants, and acquire cannabis as associates of non-profit clubs. Young adults would be allowed to purchase up to 30 grams per month, while older adults would be able to purchase up to 50 grams.

During a press conference, Health Minister Karl Lauterbach indicated that the reforms would include a risk awareness campaign, which would help curb cannabis consumption. According to the Health Ministry, the share of adults in Germany between 18 and 25 years old that consumed cannabis at least once nearly doubled in 2021 from the previous decade to 25%.

“With the current procedures we could not seriously protect children and young people, the topic has been made a taboo. … We have rising, problematic consumption, we couldn’t simply allow this to go on. So this is an important turning point in our drug policy.” — Lauterbach via Reuters

Originally, the government planned on allowing dispensaries throughout the nation; however, under the revised plan, a pilot program would first allow a limited number of licensed shops in some regions to test the effects of a commercial supply chain of cannabis over five years, the report says. Germany’s hemp association told Reuters that the regulations outlined in the proposal were “unrealistic” and the illicit market could only be beaten by allowing cannabis sales in retail shops.

If approved, the German law would be Europe’s most liberal cannabis-related reforms. In 2021, Malta became the first in the European Union to legalize cannabis for adult use. Under Malta’s law, adults can legally possess up to seven grams of cannabis and cultivate up to four plants.

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NIH Survey Finds Cannabis Use Among Adults Highest Ever Recorded by Agency

8/18/2023

The National Institutes of Health (NIH) 2022 Monitoring the Future survey found past-year and daily cannabis use among adults 19-30 years old are at the highest levels ever recorded by the agency. The survey found 44% of the cohort consumed cannabis in the past year, while 11% consumed cannabis daily.

Comparatively, past-year cannabis use among 19- to 30-year-olds was 35% in 2017 and 28% in 2012, while daily cannabis use among the cohort was 8% in 2017 and 6% in 2012.

Reports of past-year cannabis use among adults aged 35 to 50 also reached an all-time high of 28% in 2022; an increase from 25% in 2021, 17% in 2017, and 12% in 2012.

Past-year cannabis vaping was reported by 21% of adults 19 to 30 years old in 2022, the highest levels found in the survey since the question was first added in 2017 (12%). In 2021, that figure was 19% and 12% in 2017. Past-year nicotine vaping among the younger adult group also reached a historic high of 24% in 2022, nearly double the rate (14%) reported in 2017, when the NIH first added the question to the survey.

Among adults aged 35 to 50, reports of past-year cannabis vaping remained at similar levels (9% in 2022) since 2019, when these questions were first available in this age group. Prevalence of past-year nicotine vaping has also remained steady in this age group since it has been reported, with 7% reporting in 2022.

The survey found that, among adults aged 19 to 30, 8% reported past-year use of hallucinogens. Five years ago, the share was 5%, and in 2012 the share was 3%. Types of hallucinogens reported by participants included LSD, MDMA, mescaline, peyote, psilocybin mushrooms, and PCP. Most of past-year use in 2022 reported by adults in this age group involved hallucinogens other than LSD (7% in 2022).

Past-year hallucinogen use reached historically high prevalence among adults 35 to 50 years old, reported by 4% in 2022. In 2021, the share was 2%, and five and 10 years ago the share was no greater than 1%.

Over the past decade, the survey has found rates of alcohol use – including past-month use, daily drinking, and binge drinking – declined for adults 19 to 30 years old; however, past-year drinking slightly increased for this age group in 2022 (84%) compared to five years ago (82% in 2017).

The survey also found that alcohol use among adults aged 35 to 50 has shown a gradual increase over the past 10 years, with past-year drinking increasing from 83% in 2012 to 85% in 2022. Binge drinking in this older group reached its highest levels (29% in 2022), and increased over the past year, five years, and 10 years (26% in 2021; 25% in 2017; 23% in 2012).

The study also suggests that past-year use of cigarettes, sedatives, and non-medical use of opioid medications showed a 10-year decline for both adult age groups and reported past-year amphetamine use continued a 10-year decrease among 19- to 30-year-olds and a 10-year increase among 35- to 50-year-olds.

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Alabama Medical Cannabis Licensing on Hold, Again

8/18/2023

Alabama’s medical cannabis licensing process is on hold, again, after a judge on Thursday granted a temporary restraining order after several cannabis companies claimed the Alabama Medical Cannabis Commission (AMCC) violated the state’s open meetings law, WSFA reports. The lawsuit, brought by Alabama Always LLC and six other firms, was filed last month and alleges that the AMCC improperly erased recordings of its meetings.

In the most recent hearing, the plaintiffs contend that the AMCC also met behind closed doors for four hours during its latest meeting. The state’s lawyer argued that it would have been impractical to discuss the issues otherwise.

John McMillan executive director of the AMCC told WSFA that the board “had a number of pass, fail issues, background checks, and issues” that were all part of the decision to hold the closed-door session.

“And those are the kinds of things you know, you, you hate to just lay it out there. But they keep insisting so they may get their wish. … We hate any delays because there are patients suffering every day that need these products.” — McMillan to WSFA

Will Somerville, a lawyer for the plaintiffs, told WSFA that the delays are caused by the AMMA’s “refusal to follow the law at every turn.”

“They keep on doing things they shouldn’t do,” he said. “And they keep on being stopped from it.”

McMillian was unable to say how long until medical cannabis would be available to patients in light of the litigation. The licensing process was previously paused in June after the AMCC said it had found “potential inconsistencies in the tabulation of scoring data.” New licenses were awarded last week.

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Missouri Auditor to Investigate Adult-Use and Medical Cannabis Industries

8/17/2023

The Missouri Auditor is investigating the state’s adult-use and medical cannabis programs to make sure they are operating legally, KCTV reports. Auditor Scott Fitzpatrick’s office said the review will cover a five-year period from 2018 through June 30, 2023.

Voters approved a constitutional amendment to legalize medical cannabis in November 2018 and another to legalize adult-use cannabis in 2022.

“The medical and recreational marijuana programs created by these amendments are responsible for establishing a new industry in our state which has already generated more than $1 billion in sales. The rules and regulations promulgated for these programs govern hundreds of marijuana facilities all across Missouri that cultivate and sell cannabis products to hundreds of thousands of Missourians each year. Considering the enormous impact they have had on our state, it’s important that we conduct a thorough assessment of these programs to ensure they are operating in a manner that is efficient, accountable, and transparent.” — Fitzpatrick in a statement to KCTV

Fitzpatrick noted that the cannabis legalization amendments “represent some of the most substantial changes” to the state’s constitution “in recent memory” and “now make up more than one-fifth of the language” in the state constitution.

The audit comes as the state is preparing to license its first round of microbusiness licenses and following the recall of more than 63,000 products that were not tracked in the state’s seed-to-sale inventory system.

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