Only Licensed Hemp Farm In British Isles Shuts Down After UK Government Finds THC In Products

6/30/2023

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The only licensed farm in the British Isles to cultivate hemp and extract CBD onsite has shut down after the United Kingdom Home Office declared its products illegal, the BBC reports. Jersey Hemp co-owners David Ryan and Blair Jones said they laid off half their staff and halted their sales and growing operations after the UK government said it had found THC in its products and restricted export into the UK. 

A Home Office spokesperson told the BBC that the company requires an import license “before controlled drugs are imported into the UK.”

“CBD in its pure form is not a controlled drug, but if a CBD product contains THC or other controlled cannabinoids then it is likely that the product would be controlled.” — UK Home Office to the BBC 

In an interview with the BBC, Ryan described the situation as “very frustrating,” and “pretty sad,” adding that the impact on the company “has been devastating.” 

Deputy Kirsten Morel, Minister for Economic Development, Tourism, Sport and Culture, and Deputy Karen Wilson, Minister for Health and Social Services, said in a joint statement that the government remained “actively committed to supporting the cannabis cultivation industry.” 

“We are aware that Jersey Hemp is in contact with HM Government with respect to exports to the UK – as a separate jurisdiction, we cannot comment on those talks and would also not speculate on their outcome,” the statement says. “All businesses that are licensed to cultivate cannabis in Jersey are responsible for making sure they comply with the relevant legislation in the jurisdiction into which they export products.” 

Ryan and Jones indicated they are considering taking both the UK and Jersey governments to court. 

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New York’s Capital District Educational Opportunity Center Receives Grants for Cannabis Construction Training Program

6/30/2023

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New York’s Capital District Educational Opportunity Center (EOC), a division of Hudson Valley Community College (HVCC) has been awarded a $75,000 grant from the University of Southern California’s Race and Equity Center (USC) that will be put towards implementing a Cannabis Construction training program. 

The Cannabis Construction certificate training program will be offered beginning in the fall of 2023 and will teach enrolled students elements of the building trades that are required to construct indoor and outdoor grow houses, according to a press release. After completing the course, students will have learned facets of carpentry and framing for the structure; electrical wiring, outlet, and panel installation; heating and ventilation duct work and thermostat installation; and plumbing installation utilizing PVC and/or Pex tubing. Students who complete the program will receive a certificate from EOC and three credits at HVCC, which can transfer into a related degree program including construction technology, carpentry, electrical, HVAC, architecture, or engineering. 

EOC is one of 15 institutions nationwide that was selected out of more than 150 applicants to receive grant money from USC. The grant awarded is “The Takeoff: Institutional Innovations for College Men of Color,” which recognizes and supports organizations that are exemplars in finding innovative ways to improve racial equity for men of color. 

The students who complete the program will also be supported by the EOC’s partnership with the Small Business Development Center at the University of Albany. 

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Florida AG Asks Supreme Court to Toss Cannabis Legalization Ballot Question

6/29/2023

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Florida’s attorney general is asking the state Supreme Court to toss the proposed constitutional amendment to legalize cannabis for adult use in the state, arguing the ballot summary would be “misleading to voters in several key aspects,” The News Service of Florida reports. In the brief with the court, Attorney General Ashley Moody said that because cannabis remains illegal under federal law the ballot summary is “incorrect.” 

“…Voters need clear guidance before being asked to lift state-law penalties for the possession of a substance that would subject users to devastating criminal liability under federal law. And the rampant misinformation in the press and being peddled by the sponsor of this initiative about its effects makes clarity all the more pivotal.” — Moody, in the brief, via The News Service of Florida 

The campaign is led by Smart and Safe Florida but mostly funded by Trulieve, the state’s largest medical cannabis company which has contributed $39 million as of the end of May, according to the report.  

Smart & Safe Florida spokesman Steve Vancore told The News Service of Florida that the organization believes “the language as written clearly complies with the requirements of the Constitution.” 

“We look forward to bringing this matter to the Florida Supreme Court and are confident that the court will conclude that there is no lawful basis to set aside the ballot initiative,” he said in the report. “This important issue should be entrusted to the citizens of Florida – over a million of whom have already signed the Smart & Safe Florida petition saying they support it – to decide for themselves through democratic choice.” 

The Supreme Court also received briefs from the Florida Chamber of Commerce and Drug Free America Foundation opposing the measure. 

Lawyers for the Chamber contended that the proposal violates the single-subject requirement of ballot initiatives because it “impermissibly embraces the dual subjects of decriminalization and commercialization” of adult-use cannabis and the ballot title and summary “fail to disclose that the commercialization of recreational marijuana is a chief purpose of the proposed amendment – so much so that it would preclude adults 21 years of age or older from growing marijuana for their own personal use.” 

The issue has reached the state Supreme Court after the campaign gathered enough signatures to put the issue on 2024 ballots. 

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Study: Teen Binge Drinking Declined Following Adult-Use Cannabis Legalization

6/29/2023

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A recent study suggests a decline in teen binge drinking follows the passage of adult-use cannabis laws, but researchers also noted an increase in binge drinking among adults 31 and older. The study, “Recreational cannabis legislation and binge drinking in U.S. adolescents and adults,” used data from the National Survey on Drug Use and Health from 2008-2019. 

The researchers found that, during that period, binge drinking declined overall among people aged 12-20 (17.54% to 11.08%), and those aged 21-30 (43.66% to 40.22%), but binge drinking increased among people 31 and older: 28.11% to 33.34% among people 31-40; 25.48% to 28.32% among those ages 41-50; and 13.28% to 16.75% among those 51 and older.  

However, binge drinking habits among people aged 12-20 fell 4.8% after the passage of adult-use cannabis laws. 

“As the cannabis legislative landscape continues to change in the U.S., efforts to minimize harms related to binge drinking are critical.” — “Recreational cannabis legislation and binge drinking in U.S. adolescents and adults,” August 2023, International Journal of Drug Policy 

The researchers note that “the current evidence regarding the association between recreational cannabis laws and binge drinking remains limited to data from a few states, small study samples and one prior U.S. national study using Behavioral Risk Factor Surveillance System (BRFSS) data” and that their study “builds on existing literature by using nationally representative data to investigate the potential effects of the changing cannabis policy landscape in all age groups using a comprehensive measure of state alcohol policies to control for differences in state contexts.”  

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Report: Canadian Cannabis Sales Grew 157% Over Last Two Years

6/29/2023

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Canadian cannabis sales have grown 157% from May 2020 to May 2023, according to a report from cannabis intelligence firm Headset. While sales have increased year-over-year, sales growth from 2022 and 2023 was 11.8%, compared to 88.3% from 2020 to 2021, the report says.

Over the last year, cannabis flower sales in Canada decreased 15.8% while pre-roll sales have grown by 23.5%, bringing the category nearly even with flower, according to Headset. Vape pens saw a 7.1% sales increase, beverages a 5.2% increase, and concentrates a 1.6% increase. Sales of capsules fell 7.8%, topicals 19.6%, and oil 23%. The sales of tinctures and sublingual products fell from 0.1% to 0.0%.

The report also found a 369% increase in the number of brands in the Canadian cannabis market from 2020 to 2023, but the market is becoming more concentrated. In 2021, the top 21% percent of brands captured 80% of total sales – that figure was 12% so far this year.

“But with all of these new players entering the game, is there enough sales growth to support them or is tightening competition stymieing their success? Store count growth has added more available real estate for these brands, however, it doesn’t seem to be enough to spread the wealth across all new entrants. Between 2020 and 2023, the median total sales per brand dropped by 70%. Additionally, the total sales in the market have become significantly more concentrated by a subset of top brands.” — Canadian cannabis overview: a look at the last 5 years of recreational sales, Headset, June 27, 2023

Flower prices have also flattened since the start of 2022 following several years of price compression, according to the report, while the prices of edibles with higher THC levels saw a 25.3% price reduction as their popularity rose.

Customers are also spending less per trip, as the average basket size has decreased 15.6% over the last two years and the number of products per basket dropped by 5.1%, the report says.

Data for the report came from real-time sales reporting by participating cannabis retailers via their point-of-sale systems, which are linked with Headset’s business intelligence software.

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FDA Releases Draft Guidance for Psychedelic Drugs Research

6/28/2023

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The U.S. Food and Drug Administration (FDA) on Monday released its Draft Guidance for research of psychedelic drugs. The guidance covers psilocybin, LSD, and substances such as MDMA.

The guidance mirrors the good practices required by other drug and therapeutic companies, including compliance with the federal Food, Drug, and Cosmetics Act and that non-clinical investigations should follow 2010’s Nonclinical Safety Studies for the Conduct of Human Clinical Trials and Marketing Authorization for Pharmaceuticals. The guidance also details which psychedelic drugs would be considered botanical and nonbotanical.

“In recent years, interest in the therapeutic potential of psychedelic drugs has been increasing. Psychedelic drug development programs are subject to the same regulations and same evidentiary standards for approval as other drug development programs. However, designing clinical studies to evaluate the safety and effectiveness of these compounds presents a number of unique challenges. Psychedelic drugs can cause intense perceptual disturbances and alterations in consciousness that can last for several hours. Some drug development programs incorporate a psychological or behavioral intervention. Investigators hypothesize that psychedelic drugs have both rapid-onset and long-term benefits after only one or a few doses. These and other unusual characteristics should be considered when designing clinical studies so that the results of those studies can be interpretable.” — FDA, “Psychedelic Drugs: Considerations for Clinical Investigations Guidance for Industry,” June 2023

The FDA notes that most of the medical conditions being studied to date in psychedelic research programs are chronic. The proposed regulations lay out the processes for psychedelic therapy, which is legal in Oregon.

The agency says that were it to approve a drug that currently falls under Schedule I status of the Controlled Substances Act, “the abuse potential assessment would assist in determining an appropriate rescheduling action” under the CSA.

The FDA is accepting public comments on the proposed rules until August 28.

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Adults In Connecticut Can Begin Home Growing Cannabis This Saturday

6/28/2023

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Starting Saturday adults 21-and-older in Connecticut can grow their own cannabis plants for personal use, FOX 61 reports. Under the state’s legislature-approved cannabis legalization law, individuals can cultivate three mature and three immature plants up to 12 per household.  

Plants must be grown indoors, in locked areas, and unable to be accessed by anyone other than the consumer, qualifying medical cannabis patient, or caregiver. 

Christina Capitan, with CT Canna Warriors, warned that consumers should be aware of the regulations within some cities and towns and rules for apartment building and federal housing.  

“We pushed very hard for individuals to have the right to grow and not be reliant upon the producers that are licensed in our state. … Patients will have access to what they need. They will be able to grow the specific strains they need and the types that they want.” — Capitan to FOX 61 

Adult-use cannabis sales in Connecticut commenced earlier this year. Last month sales neared $23 million, the highest sales totals since the launch of the market in January. The average adult-use cannabis product price of $35.86 was its lowest level since the launch of the market but were only slightly lower than the average price of $39.48 in April. 

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Florida Gov. Signs Bill Updating Hemp Consumable Regulations

6/28/2023

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Florida Gov. Ron DeSantis (R) on Tuesday signed a bill requiring the testing of hemp-derived consumables. The measure was pared down from previous versions that would have imposed limits of 0.5 milligrams of THC per dose and 2 milligrams per container. 

The bill also defines what is considered “food” as it relates to hemp products and requires new labeling rules for the products. Under the law, “hemp extract is considered a food that requires time and temperature control for the safety and integrity of product.” 

Florida hemp food processors must also now obtain a permit from state regulators.  

The law also lays out new packaging rules for hemp-derived food products. Containers must be suitable to contain products for human consumption, composed of materials designed to minimize light exposure, mitigate exposure to high temperatures; not attractive to children, and compliant with the U. S. Poison Prevention Packaging Act of 1970.  

The measure also sets firm definitions of what types of hemp products are considered “attractive to children,” which includes “products in the shape of humans, cartoons, or animals; manufactured in a form that bears any reasonable resemblance to an existing candy product that is familiar to the public as a widely distributed, branded food product such that a product could be mistaken for the branded product, especially by children; or containing any color additives.”   

The law takes effect on July 1. 

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Survey: Majority of Californians Are Supportive of Cannabis Legalization

6/27/2023

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A strong majority of Californians remain supportive of the state’s legalization of cannabis, according to a PPIC survey out this month, which found 64% of all adults in the state back the reforms. The level of support marks a new high recorded by PPIC. 

In 2010, PPIC found just 47% of California residents backed adult-use cannabis legalization. 

The survey found a supermajority of Democrats (77%) and independents (76%) supported the reforms, which were approved by voters in 2016. Just 42% of Republicans surveyed backed cannabis legalization. A majority of individuals surveyed from all racial demographics also remained supportive, including 76% of Black people, 64% of Asian people, 53% of Latino people, and 71% of white people.  

Despite the majority of support, just 56% of respondents favored adult-use cannabis sales in their city. In actuality, cannabis sales are banned 61% of the state’s cities and counties.

Most respondents, 61%, also indicated that cannabis legalization is “mostly a good thing,” while 35% said it was “mostly a bad thing.” Californians aged 18-34 are more likely than Californians 35 and older to have a positive view of the state’s legalization law (69%-58%). Additionally, the share of Californians who say that legalizing cannabis was a good thing increases with education level (49% support among those with only a high school education, 65% support among those with some college education, and 69% support among college graduates).

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Florida Gov. Signs Bill to Issue Medical Cannabis Licenses to Black Farmers

6/27/2023

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Florida Gov. Ron DeSantis (R) has signed legislation issuing medical cannabis cultivation licenses to Black farmers and expanding telehealth renewals for medical cannabis patients, Florida Politics reports. The farmers covered under the bill were qualified for the licenses but were ultimately left out of the final permits.  

In October 2021, the state received 12 applications from Black farmers to grow medical cannabis, and in September officials awarded one license to Terry Gwinn but the license has not been finalized because of legal and administrative challenges. 

State Sen. Darryl Rouson (D) told Florida Politics that the measure “goes a long way” toward giving the Black farmers justice and “the opportunity to participate in the medical benefits of marijuana and the largesse that has been enjoyed by other members of the industry.”    

The provisions in the legislation about Black farmers satisfy federal requirements in place since 1999. For six years, the Legislature has sought to bring fairness to state licenses for cannabis production and come in line with the federal Pigford v. Glickman settlement under the U.S. Department of Agriculture, which prohibits government discrimination against minority farmers. In an interview with Florida Politics, State Sen. Tracie Davis (D) noted that the access to licenses could be passed on to the decedents of the licensees. 

The telehealth rules covered under the law still require that physicians conduct in-person physicals for patients before first authorizing a medical cannabis recommendation but the updated rules do allow renewals to be authorized via telehealth services.  

State Sen. Jason Brodeur (R), who sponsored the bill in the Senate, called its approval “a significant step forward in enhancing health care accessibility.”    

“This momentous legislation promises to revolutionize the way patients receive medical cannabis consultations,” he said in an interview with Florida Politics, “and further establishes Florida as a progressive leader in health care innovation.” 

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Anti-Cannabis Groups Sue New York Over Legalization

6/27/2023

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Anti-cannabis groups this week filed a lawsuit in the New York Supreme Court seeking to overturn the state’s cannabis legalization law, the Times-Union reports. The lawsuit was filed by the Cannabis Impact Prevention Coalition, the Cannabis Industry Victims Seeking Justice, and eight individuals associated with the groups. 

“What the tobacco companies have done the marijuana companies are doing now. It is only a matter of time before there are RICO lawsuits against marijuana stores and growing operations in New York.” — Lawsuit excerpt via the Times-Union 

The lawsuit cites federal law, which still outlaws cannabis, and argues that New York lawmakers bypassed Congress when it passed its cannabis legalization law in 2021. The groups also contend that cannabis is harmful and its claims about its medical benefits are unfounded.  

“False advertising may mislead vulnerable patients and the public. ‘Medical’ use may inadvertently result in addiction, increased risk of psychosis, mental or psychosocial impairment, lung damage when smoked, and complications for unborn children when used during pregnancy,” the lawsuit states. “The presence of ‘medical marijuana’ dispensaries may increase access to recreational marijuana for minors.” 

The lawsuit also contends that claims about the medical benefits of THC and CBD have not been subjected to studies that satisfy the federal Food and Drug Administration’s standards for determining the efficacy of the products and that the FDA has never approved a cannabis product even as a dietary supplement.  

David G. Evans, a New Jersey attorney and organizer of the group Cannabis Industry Victims Seeking Justice, told the Times-Union that this is the first lawsuit of its kind in the U.S.

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Report: Just 24.4% of Cannabis Businesses Are Profitable

6/26/2023

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In its annual Cannabis Operator Sentiment and Business Conditions report, Whitney Economics suggests that just 24.4% of cannabis businesses in the U.S. turn a profit, down 42% from the year prior.  

In a statement, Beau Whitney, founder of Whitney Economics, said that by conducting the survey, the firm “strives to bridge the gap between the theories of business economics and the daily lives of operators within the cannabis industry.”  

The survey found that “over 70% of respondents favored some form of limited cannabis licensure structure, despite many of them coming from unlimited license states.” 

“Operators continue to be impacted by taxes, strict regulatory rules, and lack of access to capital. Only one quarter (24.4%) of respondents reported profitable operations.” — Whitney Economics Q4’22 Cannabis Operator Sentiment & Business Conditions Survey Report 

The report also suggests that “cannabis legislative and regulatory policies have remained static, focused more on tax generation than on creating a viable, business friendly environment.” 

“Markets and business conditions have changed,” Whitney Economics said in a press release, “while regulatory policies have not.” 

The report says that were state policies “more industry focused and supportive of business, respondents feel that market conditions and operator sentiment will improve.” 

The survey measured shortages and surpluses in materials, services and labor inputs against future expectations. 

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Glass House Brands Sues Catalyst Cannabis for Defamation Over Diversion Claims

6/26/2023

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Glass House Brands last week filed a defamation lawsuit against Catalyst Cannabis., its CEO Elliot Lewis, and co-founder and attorney Damian Martin over their claims that Glass House is “the biggest black marketeer” of cannabis in American history. The lawsuit also accuses Catalyst of violations of California’s Businesses and Professions Code. 

Glass House’s lawsuit comes just days after Catalyst filed a lawsuit accusing Glass House of illegally diverting cannabis products, alleging the company “has become one of the largest, if not the largest, black marketers of cannabis” in the state. That lawsuit followed allegations on social media by Lewis and Martin that Glass House was diverting “75% to 80%” of its products into unregulated markets throughout the U.S.  

In the lawsuit, Glass House describes the Cayalyst co-founders’ social media posts as “a misguided and systematic defamatory social media campaign falsely accusing Glass House and its co-founders, Kyle Kazan and Graham Farrar, of being ‘the biggest black marketeer in the entire American history,’ likening plaintiffs to a Mexican drug cartel.” 

“Nothing could be further from the truth. Defendants made the statements without any evidence, knowing them to be false or, at the very least, with reckless disregard for the truth. Relying on pure speculation, defendants assert their self-serving conclusion and then plead with governmental authorities and regulations at the California Department of Cannabis Control (DCC) to investigate Glass House. Defendents then taunted plaintiffs by asserting their defamatory statements must be true because plaintiffs have not filed a defamation lawsuit. Enough is enough.” — Glass House Brands Inc. V. South Cord Holdings LLC, South Cord Management LLC, Elliot Lewis, Damian Martin    

Glass House contends that the social media posts featuring the diversion claims by Lewis and Martin are “based on misplaced anger and hostility,” asserting that the “social media rants make clear that they are enraged by the current state of the cannabis industry and, in particular, their erroneous belief” that they are “unfairly shouldering the tax burden when it is actually shared by all legal commercial cannabis operators, including Glass House.” The lawsuit contends that Catalyst ownership is angry with a California law that reduced cultivation and wholesale taxes and that because they are one of the largest retailers in the state, they believe they are “disproportionately impacted” by the law and have “trained their anger and hostility on Glass House and its co-founders even though Glass House similarly faces regular competition from illicit sales at lower sales prices than the legal market can bear.”

“Glass House and its founders have done things the right way, working hard to comply with all regulatory standards,” the company says in the lawsuit. “Indeed, since Glass House commenced operations, it has taken every effort to fully comply with all applicable state and local laws, ordinances, rules and regulations pertaining to every aspect of its commercial cannabis businesses.”

The company also notes that, to date, it has never been tagged for any violations by the state. 

Glass House contends that Catalyst is violating the state’s Businesses and Professions Code with their claims because the firms are direct competitors and Lewis’ and Martin’s claims on social media are meant to diminish the reputation of their firm.  

“While defendants Lewis and Martin have tried to craft their public image and that of Catalyst to be seen as ‘for the people’ that ‘speak truth to power,’ the actual truth is far different than their manufactured narrative,” Glass House says in the lawsuit. “Defendants are not ‘for the people,’ but are motivated by their own self-interest.”  

Glass House is seeking a jury trial, and asking for damages, an injunction against further defamatory comments and the removal of social media posts that contain defamatory comments, and legal fees.  

In an Instagram post responding to the lawsuit, Lewis doubled down on his claims against Glass House and vowed to “continue this fight.”

“This fight has always been about truth,” he said, “and frankly, with the little Glass House pile of shit, I wipe my ass with it and I want to thank Kyle and Graham for bringing it because you’ve opened up the discovery floodgates.”

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Nearly $11M Worth of Products Seized in Crackdown on Unlicensed New York Cannabis Retailers

6/26/2023

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During the first three weeks of enforcement actions against unlicensed cannabis retailers in New York, regulators have seized nearly $11 million worth of products and a minimum of 1,000 pounds of cannabis.   

In a press release, Gov. Kathy Hochul (D) said unlicensed cannabis businesses violate state laws, put public health at risk, and undermine the state’s legal cannabis market. 

“…With the powerful new tools in our toolbelt we’re sending a clear and strong message: if you sell illegal cannabis in New York, you will be caught and you will be stopped.” — Hochul in a statement 

Earlier this month, state officials approved emergency regulations to crack down on illegal cannabis retailers. Under the rules, which cover both unlicensed sales of hemp and delta-9 cannabis products, regulators are permitted to seize products from unlicensed cannabis retailers, shut down the businesses, and issue fines.    

Since June 7, the New York State Office of Cannabis Management (OCM) and the New York State Department of Taxation and Finance (DTF) have jointly conducted inspections at 33 storefront businesses in New York City, Ithaca, and Binghamton not licensed to sell cannabis. The businesses face fines starting at $10,000 per day, which rise up to $20,000 per day for “the most egregious conduct,” the governor’s office said. The new law has also authorized the agency to seek a state court order to ultimately padlock businesses found to be in repeated violation of the law, among other penalties. 

In a statement, OCM Executive Director Chris Alexander called the three-week action “a sharp warning to every business selling cannabis without a license.” 

“Thanks to the governor’s efforts, our enforcement teams are out every day putting an end to the proliferation of unlicensed cannabis sales across New York State,” he said in a statement. “Supporting local entrepreneurs launching legal cannabis businesses with safe and tested licensed products is paramount. OCM is committed to protecting public health and ensuring consumer safety.” 

In all, 31 businesses were issued violation notices. 

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California Cannabis Distributor Herbl Collapses

6/23/2023

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California cannabis distributor Herbl is shutting down its operations and entering receivership, according to an MJBizDaily report.

Herbl was one of the largest licensed cannabis distributors in California’s cannabis industry, which operates on a mandatory distributor model, meaning all brands must sell their products through licensed distributors like Herbl. The company reportedly handled about $700 million in product sales in 2022.

It marks the largest collapse so far of a California cannabis brand, and the development could leave other brands out potentially tens of millions of dollars in unpaid invoices; the state may also be owed millions still in unpaid taxes, the report said.

“The recent receivership of Herbl, one of California’s largest cannabis distributors, should be a wake-up call to policymakers that all is not well, and immediate action is called for to avert a crisis that has already started. Herbl was well-run, well-financed and stocked with well-known brands. However, even with these advantages, it was unable to overcome the structural challenges of operating in California and now finds itself in receivership.” — Wesley Hein, President of the Cannabis Distribution Association, via MJBizDaily

Former Herbl employees mentioned on LinkedIn last week that they were searching for new jobs. The company has reportedly laid off the majority of its workforce, leaving just a “skeleton crew” pursuing payments from retailers while fielding calls from other California operators who are in turn looking for payments owed to them by Herbl, according to the report.

The company started to miss payments to other brands about six weeks ago, the report said.

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Report: Oklahoma Growers Producing 64 Times More Medical Cannabis Than Market Demand

6/23/2023

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Oklahoma medical cannabis growers may be producing 64 times more cannabis than needed for the state’s patient population, according to a Cannabis Public Policy Consulting study commissioned by the Oklahoma Medical Marijuana Authority (OMMA). The study used data from the state’s newly implemented seed-to-sale tracking system and surveys of more than 1,300 cannabis patients.  

According to the report, “the supply-to-demand ratio of [Oklahoma’s] regulated medical marijuana supply to regulated medical cannabis demand is 64:1.” Given the general assumption that a market’s units of supply should not exceed double its demand, “the medical marijuana program has no less than 32 times more regulated marijuana necessary” — and the oversupply is “very likely adding to an illicit market both at the point of cultivation and the point of retail sale,” the report said. 

Oklahoma has among the loosest medical cannabis program in the U.S. and over the last year, lawmakers have passed several bills seeking to reign it in, including requiring $50,000 bonds for cannabis cultivators, imposing a moratorium on new cultivation licenses, and giving OMMA the authority to shut down cannabis farms that damage the environment.  

“The volume of oversupply within the regulated system coupled with low barriers to market entry suggest unlicensed/illicit cannabis cultivation operations are unlikely to be observed across the state, and that this illicit market may, in fact, be hiding in plain sight.” — Cannabis Public Policy, “An Empirical Assessment of Oklahoma’s Medical Marijuana Market,” June 2023 

The study suggests that 38% of cannabis obtained in Oklahoma comes from the regulated market – either dispensaries or home grows – while 44% is obtained through the unregulated market and 18% is obtained from out-of-state adult-use dispensaries. 

The report suggests that Oklahoma continue to extend the moratorium on cannabis cultivation licenses through 2026 and authorize OMMA to seize and destroy cannabis products that are not logged in the seed-to-sale systems, among other steps to address the state’s oversupply issues.  

Editor’s note: This article was updated to clarify that Oklahoma’s estimated medical cannabis oversupply is 64 times more than the state’s current demand, not 64 times more than what is needed in terms of patient access.

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Florida Court Upholds Firing of Corrections Officer for Medical Cannabis Use

6/23/2023

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A Florida appeals court on Wednesday upheld the firing of a Department of Corrections officer for using medical cannabis, WOKV reports. A three-judge panel of the 1st District Court cited federal law and a job requirement that officers are able to use firearms. 

The case was brought by Samuel Velez Ortiz, a former sergeant for the Department of Corrections who was approved by a physician to use medical cannabis to treat post-traumatic stress disorder related to previous military service. Velez Ortiz had failed a random drug test in 2021, which led to his termination under the department’s “zero tolerance” policy for drugs. Velez Ortiz challenged the firing, taking the dispute to the 1st District Court of Appeals after the state Public Employees Relations Commission backed his termination. 

In the ruling, written by Judge Clay Roberts and joined by Judges Stephanie Ray and M. Kemmerly Thomas, the panel said that although Velez Ortiz “can legally possess and use medicinal marijuana under state law, his use of it is illegal under federal law.”    

“Accordingly, he cannot lawfully possess a firearm. Each time he does, he is committing a felony. And each year, he is required to possess a firearm to qualify. As a result, he is violating his requirement to maintain good moral character, which is required to keep his correctional officer certification.” — Roberts, in the ruling, via WOKV 

In their brief, lawyers for the state wrote that Velez Ortiz did not argue that the Corrections Department “may validly prohibit correctional officers from being under the influence of marijuana, including medical marijuana, while on the job, no matter whether the officer ingested that substance on or off-site.” 

“Yet the department has no way to distinguish between an officer who is high on the job because he ingested medical marijuana from a person who ingested the same drug off-site. The result would be untenable risks to public safety,” the lawyers wrote. “A correctional officer who shows up to work high or experiencing the lingering effects of marijuana – including lack of focus and delayed reaction times – may not trigger alarm bells until the worst-case scenario has already come to pass.”

Velez Ortiz’s attorneys argued that the case revolved around “discrimination” against Velez Ortiz “for being a medical marijuana user” noting that he had never asked to use or possess medical cannabis on-site or during work hours. 

The case is believed to be the first of its kind in the U.S. 

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Bill to Regulate CBD and Kratom Products Passes North Carolina House Committee

6/23/2023

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A bill in North Carolina to regulate hemp-derived cannabis products passed the House Judiciary Committee on Wednesday, WRAL News reports. The measure would limit the CBD content of hemp-derived products to 200 milligrams, impose license requirements for selling the products, and create marketing and packaging regulations. 

The bill also includes new regulations for kratom products, including an age requirement of 18 to purchase the products. 

Under the measure, licensees must be 18-years-old, have not been convicted of a felony relating to a controlled substance within 10 years, allow inspection and sampling of products, and be current in filing and paying taxes. 

The bill includes a schedule of licensing fees, including $5,000 for manufacturers, $2,500 for distributors, and $100 per location for both in-person and online retailers, up to $2,500. The licenses would need to be renewed annually. 

Packaging of CBD products would need to be child-proof and include a warning label. The products would also need to include a list of ingredients, a statement that acknowledges the product is not approved by the federal Food and Drug Administration, list the total amount of hemp-derived cannabinoids in milligrams, and feature a code that could be scanned for more information. The measure also bans products that could appeal to children. 

The legislation moves next to the House Appropriations Committee. 

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Malta Still Hasn’t Awarded Any Cannabis Club Licenses

6/23/2023

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Editor’s note: This article was contributed by Johnny Green, Media and Content Director for the International Cannabis Business Conference.

Going into 2023, it appeared that Malta was poised to issue non-commercial cannabis club licenses in quick order. However, as we near the midway point of this year, the European nation has still yet to issue its first license.

Permitting non-commercial cannabis clubs was a key component of an adult-use legalization measure passed by lawmakers in Malta in late 2021. In addition to non-commercial cannabis clubs, adults 18 and over can carry up to seven grams of cannabis in Malta and cultivate up to four plants at their residences.

Club applications first became available in Malta nearly four months ago and while 26 applications have been submitted thus far, Malta’s government has yet to approve any of them.

Non-commercial cannabis club provisions

The head of Malta’s Authority for the Responsible Use of Cannabis Leonid McKay stated earlier this month that “just because we have 26 applications, it does not mean we will be granting 26 licences. There will be a rigorous vetting process.”

Each club license applicant must pay a €1,000 registration fee, as well as another €1,000 for the license itself for the first 50 members, if approved. For approved cannabis clubs — however many that proves to be — membership will be capped at 500 members.

The clubs cannot advertise, and they cannot ‘incite the use of cannabis.’ Additionally, clubs cannot be located within 250 meters of a school or ‘youth center.’
Adult citizens in Malta can only join one club at a time, the cannabis sold through the clubs must be labeled in a manner that ‘discourages cannabis use,’ and all packaging must include THC levels. Clubs that provide cannabis to members 18-20 years old must limit sales to products with capped THC levels.

Local banks provide reassurance

One thing that every non-commercial cannabis club will presumably need is a bank account, even though they are not permitted to generate profits. All revenue from club sales is mandated to be reinvested in the club’s efforts and to support club salaries.

While I suppose it’s possible to perform those functions without a bank account, financial tasks will obviously be much easier for clubs in Malta to perform with access to the nation’s financial system.

Thankfully, local banks, via the head of Malta’s Authority for the Responsible Use of Cannabis, provided reassurances earlier this month that they will indeed work with approved club applicants. Securing banking access was a vital component that the government was waiting for prior to approving licenses, yet it’s still unclear what other facets may be delaying approvals.

Malta was the first European country to pass a national adult-use legalization measure and remains the only country to have done so on the continent. It’s an important fact that international observers need to keep in mind, as it is extremely difficult to be the first country to do something when it involves cannabis commerce. However, patience appears to be running out in Malta and any further delays only benefit the unregulated market.

The expected licensing of Malta’s non-commercial cannabis clubs will be a major discussion topic at the International Cannabis Business Conference later this month in Berlin.

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Colorado Gov. Plans to Issue Pardons for Psychedelic Drug Convictions

6/22/2023

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During remarks at the Psychedelic Conference in Denver, Colorado Gov. Jared Polis said he plans to issue pardons for all criminal convictions in the state related to psychedelic drugs, Axios reports. Polis last month signed a bill to implement medical psilocybin legalization and decriminalize the personal use and cultivation of other natural psychedelics following a successful psychedelics decriminalization voter initiative in the state last year. 

During his remarks, Polis also indicated that he wants insurance companies, including Medicare and Medicaid, to be required to cover the cost of psychedelic therapies. 

“It is still ridiculous that in this day and age somebody suffering from anxiety, depression, [post-traumatic stress disorder] can get medical coverage for very costly prescription drugs but cannot get coverage for a treatment in a healing center that will address some of the underlying causes of the issue.” — Polis, in remarks during the Psychedelic Conference, via Axios 

Polis said the pardons would prevent individuals from being held back from employment opportunities. In 2021, Polis issued 1,351 pardons for Coloradans convicted of cannabis possession. 

The ballot measure approved by voters decriminalized the possession, cultivation and sharing of psychedelics and hallucinogens, such as psilocybin, ibogaine, mescaline, and DMT, for those 21 and older. Polis has called the reforms a “thoughtful, common sense approach.” 

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Twitch Bans Cannabis Product Advertising Despite Allowing Alcohol Ads

6/22/2023

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Cannabis companies cannot buy advertising or otherwise sponsor streamers on the popular online streaming platform Twitch, which is owned by Amazon, after the company updated its branding policies earlier this month. Notably, Twitch’s new branded content policy does allow for the promotion of alcohol products but they must be “marked as mature content” on the platform.

Twitch does allow users to consume cannabis on-stream so long as the person streaming is of-age and located in a place where cannabis has been legalized but its tolerance of cannabis content appears to stop there.

In addition to banning cannabis promotions, Twitch also banned advertisements for tobacco products including cigarettes, e-cigarettes, chewing tobacco, etc.; weapons such as firearms, explosives, etc.; adult-oriented products or services like pornography, sexual content, or male enhancement products; medical services and products including prescription drugs, “miracle cures,” and drug treatment centers; certain financial services like multilevel marketing, get-rich-quick schemes, and payday loans; and political content including “paid promotion of politicians, political parties, or issues of public debate.”

But while Twitch appears to be prioritizing cannabis censorship, the streaming platform’s parent company Amazon has recently signaled support for national cannabis policy reforms. The online retailer endorsed the 2021 MORE Act — a federal cannabis legalization bill — and said it would stop drug testing its employees for cannabis. In 2022, Amazon also endorsed the States Reform Act, which was a GOP-backed legalization proposal.

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Colombia Senate Rejects Cannabis Sales Bill

6/22/2023

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The Colombia Senate on Tuesday narrowly rejected a bill to allow legal cannabis sales to adults, Reuters reports. The measure failed despite having a majority of support in the chamber — 47 voted in favor and 43 opposed but, as a constitutional amendment, the bill needed support from 54 senators, leaving it just seven votes short.

Despite the vote, Interior Minister Luis Fernando Velasco indicated on Twitter that the administration of President Gustavo Petro would “insist on this issue.”  

In an interview with La Prensa Latina, Liberal Party Senator Juan Carlos Losada said he doesn’t consider the vote as a “defeat.” 

“We have taken a giant step, four years of putting such a controversial issue at the top of the public agenda, of the public debate. … Continuing to leave a substance that is legal in the hands of the drug traffickers and drug dealers is detrimental to the children of Colombia and detrimental to the country’s democracy.” — Losada to La Prensa Latina

The legislation included restrictions on the use and sale of cannabis and its derived products in schools and universities, and limited public consumption. Colombia currently allows some cannabis products for medical use, including oils and creams. Reforms passed in the 1980s and 1990s allow for personal cannabis use and cultivation up to 20 plants. 

Only one South American nation, Uruguay, allows cannabis sales to adults. 

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Workers at California Cannabis Distribution Company Vote to Join Teamsters Union

6/22/2023

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Workers at southern California-based cannabis distribution company Amuse on Wednesday voted to join the Teamsters Local 630.  

In a statement, Elias Valenzuela Jr., a driver and member of the organizing committee who was previously a member of the United Auto Workers, said that “almost everyone” signed up when organizers first started handing out authorization cards, describing the process as “really quick.” 

“People realized that this company isn’t moving with us, and we have to move up. A message I have for other cannabis workers about why they should unionize is corporate greed is still strong and alive, and it’s never going away until we stand up and say enough is enough.” — Valenzuela in a press release 

Peter Finn, Teamsters Western Region vice president and Food Processing Division director, said the union is expanding its reach among California cannabis distributors because workers see the difference the union makes “firsthand.” 

“They recognize the Teamsters is the best union to ensure that they have long-term, prosperous careers in this exciting, burgeoning industry,” he said in a statement. 

Lou Villalvazo, Local 630 secretary-treasurer, said the union looks forward to getting the workers “a strong contract that addresses the issues that are important to them – security, regular wage increases, respect, and a voice on the job.” 

Teamsters Local 630 represents workers in various industries, from clerical, warehouse, professional drivers, food service, liquor, food processing, and dairy.  

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California Awards $4.1M to Help Expand Cannabis Retail Access

6/21/2023

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The California Department of Cannabis Control (DCC) on Tuesday awarded 18 municipalities $4.145 million in grants to expand access to licensed retail cannabis. Fourteen of the grants – totaling $870,000 – were awarded to jurisdictions that want to issue licenses to operators who have been negatively or disproportionately impacted by cannabis prohibition.

In a statement, Department of Cannabis Control Acting Director Rasha Salama said the program “will help provide access to regulated cannabis retail for over 2 million Californians that currently live in an area where access to licensed cannabis retail businesses is insufficient.”

Grant recipients can use the grant money to develop retailer licensing programs to assist in issuing retail cannabis licenses. This includes drafting and adopting ordinances, hiring staff and contractors, holding community outreach and engagement events, forming stakeholder workgroups or technical advisory committees, conducting economic studies and environmental reviews, developing application forms or online application portals, and processing and issuing cannabis retail licenses.

The first round of funding was prioritized for areas in California where national surveys find high cannabis consumption but where there is little to no access to legal cannabis retail, the DCC said in a press release, and incentivized local best practices by prioritizing programs that support social equity operators and use existing licensing and permitting practices.

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