Wisconsin Supreme Court: Cannabis Odor Enough to Justify Vehicle Search

6/21/2023

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Wisconsin’s Supreme Court on Tuesday ruled 4-3 that the odor of cannabis is enough to justify police searches of vehicles, even though substances legal in the state can smell like illegal cannabis, the Associated Press reports. The decision overturns lower court rulings that said police officers could not be sure what they smelled was not a CBD product and, therefore, could not use the odor of cannabis as a reason to search a vehicle. 

Wisconsin has not legalized cannabis for adult use.   

The ruling focused on the case of Quaheem Moore, who in 2019 was pulled over alone for speeding and officers searched the vehicle he was driving based on the odor of cannabis. Moore told officers he was using a CBD vape pen and that the car was a rental that belonged to his brother. Police did not smell cannabis on Moore but upon searching him found cocaine and fentanyl. A circuit court judge and an appeals court had previously moved to disqualify the drugs that police found, saying the search wasn’t legal because cannabis odor was no justification for the search.

Justice Brian Hagedorn, who issued Tuesday’s opinion on behalf of the court’s conservative majority which disagreed with the lower courts, wrote that because Moore was the only person in the car, police could reasonably assume he “was probably connected with the illegal substance the officers identified.” The ruling referenced a 1999 U.S. Supreme Court decision that found officers were justified in arresting a driver because they linked cannabis odor in the vehicle to him and that the “unmistakable” smell of a controlled substance was evidence that a crime had been committed. 

The Wisconsin Supreme Court’s three liberal justices dissented, saying the 1999 ruling cited by the majority was outdated and that in Moore’s case, the officers didn’t have strong evidence the cannabis odor was caused by Moore. 

“Officers who believe they smell marijuana coming from a vehicle may just as likely be smelling raw or smoked hemp,” Justice Rebecca Frank Dallet wrote in a dissenting opinion, “which is not criminal activity.” 

Other state courts have determined that, in the wake of federal hemp legalization, cannabis odor is not enough to justify the search of a vehicle or arrest of the driver. Maryland’s Supreme Court in 2022 ruled that officers can search vehicles based on cannabis odor but could no longer arrest a driver based on cannabis odor alone. In 2021, the Delaware Supreme Court made a similar decision. That same year a judge in Illinois ruled that raw cannabis odor was not enough to justify a search. 

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Study: Illinois Teenagers Living Near Medical Cannabis Dispensaries Less Likely to Consume Cannabis

6/21/2023

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Teenagers in Illinois who live in ZIP codes that have medical cannabis dispensaries are less likely to consume cannabis than those who live in areas without them, according to a study by researchers at the University of Illinois Urbana-Champaign published in the journal Cannabis.   

Using data from the Illinois Youth Survey, the researchers found that about 18.3% of the youths living in Illinois ZIP codes with medical dispensaries reported consuming cannabis during the prior year compared with 22.4% of those who lived in ZIP codes without the businesses. 

In a statement, Doug Smith, director of the U. of I. Center for Prevention Research and Development, called the study’s findings “good news,” noting that “there are still reasons to be cautious and continue monitoring things.”  

“The good news is that it looks like in Illinois there was no immediate impact on adolescent substance use rates after medical dispensaries came on. In fact, we found that across the whole sample, those who lived in a ZIP code with a dispensary were less likely to have used cannabis during the past 30 days or one year.” — Smith in a press release 

Smith added that the survey’s results are a “head-scratcher” but said the results could be due to when the survey was taken – in 2018 – when there were just 53 dispensaries operational throughout the state. 

“However, we need to combat the hysteria that legalizing cannabis is going to have a wild and resounding impact on teens in terms of substance use rates and prevalence,” Smith said. “That’s simply not the case.” 

The average age of the students surveyed was 15 years old and the majority of the students in the sample were white (43%) or Latino (26%). Most of those surveyed – 47% – were from suburban Chicago, with 21% from other cities, 18% from rural areas, and 14% from Chicago.  

About 32% of the Chicago youths in the study lived in ZIP codes where medical cannabis dispensaries were operating compared with 3.5% of those living in rural areas. 

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NCAA Considers Removing Cannabis from Drug Testing Protocols

6/20/2023

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The NCAA Committee on Competitive Safeguards and Medical Aspects of Sports (CMAS) last week indicated its support for removing cannabis from the association’s banned drug list and testing protocols. The committee will gather input from the membership this summer, with final action expected in the fall. The issue was referred to the committee by Divisions II and III.

The NCAA said the rationale for the change is due, in part, to the “consensus opinion that cannabis is not a performance-enhancing drug and that a harm reduction approach to cannabis is best implemented at the school level.” The reforms would treat cannabis more like alcohol, the NCAA said.

For the cannabinoid class to be removed from the NCAA list of banned drugs, each of the three NCAA divisional governance bodies would have to introduce and adopt legislation, the organization said in a press release. The committee will also seek support from the NCAA Board of Governors to stop testing for cannabis at NCAA championship events while the action is considered.

CMAS also signaled its support for the development of a comprehensive communication and education campaign that provides guidance to the membership about cannabis.

Additionally, the NCAA plan an education campaign for student-athletes “on the health threats posed by contemporary cannabis and methods of use” and a “realigning toward institutional testing and how that testing supports/enhances campus efforts to identify problematic cannabis use.”

 

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Nevada Gov. Signs Bill to Increase Cannabis Possession Limits & Reduce Industry Restrictions

6/20/2023

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Nevada Gov. Joe Lombardo (R) last week signed an omnibus cannabis bill into law that more than doubles the state’s personal possession limit and removes other industry restrictions, according to a Marijuana Moment report.

The measure, sponsored by state Sen. Dallas Harris (D), immediately raises the purchasing and possession limit from one ounce of cannabis flower to two and a half ounces, and from an eighth of an ounce of cannabis concentrate to a quarter of an ounce.

The law also adjusts the state’s cannabis industry regulations as such:

  • It removes the need for adult-use shops to hold a medical license in order to serve medical cannabis patients.
  • It blocks the issuing of any further medical cannabis licenses starting January 1, 2024, except in regions where adult-use sales remain prohibited.
  • It reduces cannabis licensing and renewal fees are to be reduced under the new law.
  • It allows for past felons to receive cannabis industry licenses at the discretion of the Nevada Cannabis Compliance Board, so long as it first “determines that doing so would not pose a threat to the public health or safety or negatively impact the cannabis industry in this State,” the report said.
  • It mandates the state Cannabis Advisory Commission investigate how removing cannabis from both the federal Controlled Substances Act and the Nevada Uniform Controlled Substances Act could affect the industry.
  • Lastly, it requires officials to consider how future changes to the industry could affect the environment, and determine ways to mitigate or offset potentially harmful outcomes.

The Nevada cannabis industry recorded nearly $1 billion in retail sales for the fiscal year 2022.

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Pennsylvania Awards More Than $390K in Grants for Hemp Industry Awareness Projects

6/20/2023

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Pennsylvania on Sunday awarded $392,265 in grants to three agriculture non-profits to fund fiber and food hemp market awareness in the state. Agriculture Secretary Russell Redding said the grants will “feed the growth of an industry that was once a staple of Pennsylvania’s economy and is once again growing opportunities for new businesses, farm income, jobs, and climate-smart, environmentally sound products.” 

Vytal Plant Science Research received the largest grant – $315,765 – to introduce a STEM curriculum to high schools and universities to effectively engage in industrial hemp production, management, and cultivation by promoting and marketing industrial hemp for its many uses such as food, fiber, fuel, industrial, and personal care products. 

Vytal is a non-profit that sponsors research at Penn State Harrisburg’s Central Pennsylvania Research and Teaching Laboratory for Biofuels. 

The Pennsylvania Hemp Industry Council was awarded $56,000 for an awareness campaign to promote the benefits of hemp and create new markets for hemp-based products. 

The U.S. Ecological Advanced Research & Conservation Hub Hemp Certificate Program for Disadvantaged Communities (USEARCH) was awarded $20,500 to develop an educational program for disadvantaged communities including youth, veterans, and women to enable them to get involved in the hemp industry.   

Grant funds will reimburse up to half of the project costs. In all, the state Agriculture Department has invested $1.5 million in the state’s hemp industry. In January, the agency awarded $200,000 in grants to three non-profits in the state. 

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Georgia Man Sentenced to 3 Years for Using Hemp Business to Defraud Farmers

6/20/2023

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A Georgia man last week was sentenced to three years in federal prison and ordered to pay more than $2 million in restitution for his role in defrauding farmers in a hemp business venture.

Rahsaan Jackson Garth, 49, was found to have misrepresented his business, Verde Leaf, to farmers that had entered into contracts with him, claiming that the company had contracts and distribution deals with food, pet, and pharmaceutical companies, which he did not.

Ultimately, Garth was unable to finalize any distribution contracts and, therefore, was unable to process the hemp or pay most of the farmers for their crops and Verde Leaf declared bankruptcy.

“As a result of the false statements that lured the farmers into doing business with Garth, the farmers suffered great financial harm.” — U.S. Attorney’s Office, District of South Carolina, in a press release

Garth was released from federal prison in 2017 for charges related to healthcare fraud and almost immediately formed Verde Leaf. The company was supposed to address the challenges farmers faced in the hemp sector including license acquisition, hemp cultivation and processing, and industry knowledge. Garth solicited multiple farmers in South Carolina, North Carolina, and Georgia to grow hemp for the company.

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Vermont Increases Home Grow Limits and Expands Access for Cannabis Patients

6/19/2023

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Medical cannabis patients in Vermont can now grow 12 plants, up to six mature, and medical cannabis products can now contain up to 100 milligrams of THC per serving, under legislation that Gov. Phil Scott (R) allowed to become law without his signature. The bill also adds post-traumatic stress disorder to the state’s medical cannabis qualifying conditions list.   

In a letter to lawmakers, Scott said he allowed the measure to become law without signing it because the measure repeals the sunset of the Cannabis Control Board, which he says “appears minor, but in fact has substantive consequences for the principle of separation of powers.”   

“I understand there is a need for an alternative structure for regulating controlled substances that remain federally illegal so that we do not compromise federal funding. However, when removing the sunset on the CCB, the statutory authority of the CCB needs to be clarified to ensure constitutionality and accountability to the governor.” — Scott in the letter 

In the letter, Scott notes that once appointed, CCB members may only be removed for cause by the other two CCB members and that the agency “has added staff, taken over the regulation of medical cannabis and the medical registry, and grown to be an approximately 22-member department.”  

“As an independent entity, the CCB regulates a multi-million-dollar industry with no oversight,” the governor wrote in the letter. “Again, while I have complete confidence in the current CCB, this lack of oversight creates the risk for future mismanagement, conflicts of interest and other harmful impacts.” 

Scott said he plans to work with the CCB and lawmakers on legislation that would “make the modifications necessary to clarify the statutory authority of the CCB is constitutional.”       

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Arkansas Judge Voids 27 Medical Cannabis Laws Passed by Lawmakers to Change Voter-Approved Amendment

6/19/2023

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An Arkansas judge last week voided 27 medical cannabis laws passed by lawmakers to amend the voter-approved law, calling the changes unconstitutional, THV11 reports. The laws voided were passed in 2017, 2019, and 2021 and included THC limits on edibles, how the state collected taxes on cannabis, and industry marketing. 

The lawsuit was brought by cannabis companies Good Farm Arkansas and Capital City Medicinals against the State of Arkansas, and the Department of Finance and Administration, and Alcoholic Beverage Control Division.   

Following the ruling, Arkansas Attorney General Tim Griffin, said the ruling by Judge Morgan “Chip” Welch was disappointing and “contrary to the law.” He said he plans to appeal the decision to the state Supreme Court “expeditiously.” 

Of the now null and void laws, 24 of them were passed in 2017, two in 2019, and one in 2021. Among them include the law creating the state’s Medical Marijuana Commission, allowing criminal background checks for cannabis business licensees, banning Arkansas National Guard members from being caregivers for medical cannabis patients, a telemedicine ban for medical cannabis patients, tax laws, medical cannabis packaging, cannabis cultivation facility safety and security requirements, and others.  

The original text of the amendment that was approved by voters to legalize medical cannabis will remain in effect as initially written.  

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Alabama Pauses Medical Cannabis Licensing Due to ‘Potential Inconsistencies’ in Scoring Data Tabulation

6/19/2023

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The Alabama Medical Cannabis Commission (AMCC) on Friday voted to pause all proceedings related to the issuance of medical cannabis licenses in the state after the agency’s “discovery of potential inconsistencies in the tabulation of scoring data.” 

The stay comes just four days after the AMCC awarded its first medical cannabis licenses to four cultivators, four processors, four dispensaries, five integrated facilities, three secure transporters, and one testing laboratory.    

In a statement, AMCC Director John McMillan said the agency “will work expeditiously to investigate and identify inconsistencies in the score data.”

“Out of an abundance of caution, we are suspending all current procedural timelines until those matters are resolved.” — McMillan in a press release 

The commission indicated it plans to seek an independent review of all scoring data before proceeding with licensing.  

The stay issued by the commission impacts the following procedural requirements of the program: 

  • Applicants who were awarded a license on June 12, 2023, are not required to pay the license fee by June 26, 2023. 
  • Applicants who were denied award of license on June 12, 2023, are not required to submit a request for an investigative hearing by June 26, 2023. 
  • Licenses that were awarded on June 12, 2023, will not issue on July 10, 2023. 

The stay will remain in effect until lifted by the commission and, once lifted, the AMCC will reconsider the award of licenses, and provide a timeline for the payment of license fees, request for investigative hearings, and issuance of licenses. 

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Survey: Cannabis Less Harmful than Cigarettes, Vapes, Alcohol, & Opioids

6/16/2023

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A survey by the American Psychiatric Association (APA) and Morning Consult found Americans believe cannabis is less harmful than cigarettes, vapes, alcohol, and prescribed and non-prescribed opioids but more harmful than technology.

The survey also found that respondents believed that cannabis was less addictive than cigarettes, vapes, alcohol, prescribed and non-prescription opioids, and technology.

In a statement, APA President Dr. Petros Levounis said the survey showed “It is clear that we have gotten the message through that cigarettes are dangerous and addictive.”

“We can help prevent more Americans from other potentially addictive behaviors, like drinking alcohol and technology use. For instance, vaping is just as, if not more addictive than cigarette smoking. We can also make sure that people know about our current safe and effective treatments for both substance use disorders and the behavioral addictions. Addiction treatment works.” — Levounis in a press release

Among those surveyed, 13% said they consumed cannabis daily, along with 21% who smoked cigarettes daily, 8% that used vapes daily, 7% that consumed alcohol daily, 4% that used prescribed opioids daily, 2% that used non-prescribed opioids daily, and 67% that used technology daily.

The poll was conducted April 20-22, 2023, and included a sample of 2,201 adults.

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New York Regulators Shut Down 16 Shops for Selling Cannabis Without a License Over Last Week

6/16/2023

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New York regulators on Thursday shut down five unlicensed businesses selling cannabis in Ithaca and Binghamton and the companies now face fines of up to $10,000 per day they were selling cannabis without a license. 

The Office of Cannabis Management (OCM) and Department of Taxation and Finance (DTF) also seized products, which is allowed under recently-approved emergency rules. The action targeted three businesses in Ithaca and two in Binghamton. The shops will next be subject to hearings before an administrative law judge and, if found to be non-compliant, the judge may confirm the fines assessed and require unlicensed operators to pay them.  

If an unlicensed location is found to continue selling cannabis products after OCM issues a notice of violation or order to cease, an additional per-day penalty of up to $20,000 may be assessed by an administrative law judge. Further, should the unlicensed business remove the OCM violation notices affixed to the storefront, the business is subject to a fine of up to $5,000.  

The OCM said it had also conducted inspections of businesses in New York City last week and issued notices to 11 of them. 

All fines must be confirmed by an administrative law judge and the businesses may also face penalties under state tax and finance laws.  

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Maryland Suspends a Cookies Dispensary License After Video Shows Cannabis Smoke Shot from ‘Gun Apparatus’ into Peoples’ Mouths

6/16/2023

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The Maryland Cannabis Administration (MCA) has temporarily shut down a Cookies dispensary following several violations, including a video that “appeared to show large plumes of medical cannabis smoke being blown from a large gun apparatus into the mouths of persons outside the dispensary,” according to the suspension notice outlined. The action came less than a week after Cookies held the dispensary’s grand opening on May 27. 

Inspectors also cited Cookies for advertising online in a way that “targets or is attractive to minors, including a cartoon character.” The notice also said that Cookies social media advertisements violate the agency’s rules for including the likeness of two, unnamed, celebrities, using “at least three publicly known non-cannabis trademarks,” and the use of cannabis in the ads.

The dispensary is also accused of refusing to provide inspectors with material needed for their investigation, including security footage, despite being asked several times. Inspectors said Cookies did not maintain security footage, which “constitutes an operational failure risking diversion and endangering the public’s health.”

Additionally, the MCA said the dispensary did not have a secure door between its service and operational areas which “also creates a risk of operational failure risking diversion because the purpose of the door is to help monitor and limit the number of cannabis agents with access” to all parts of the dispensary. 

Cookies has 30 days from the date of suspension to request a hearing and could face a $10,000 fine per violation. 

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Alabama Awards First Medical Cannabis Licenses

6/15/2023

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The Alabama Medical Cannabis Commission (MCC) on Monday awarded its first round of business licenses to four cultivators, four processors, four dispensaries, five integrated facilities, three secure transporters, and one testing laboratory.

In a statement, MCC Chairman and oncologist Dr. Steven Stokes said “There was no shortage of qualified individuals and entities who provided applications” for officials to consider.

“Based on the evaluators’ assessments and the Commission’s considerations, we believe that we have selected an outstanding slate of inaugural licensees to represent Alabama’s new medical cannabis industry.” — Stokes in a press release

Under the state’s medical cannabis law, the commission can award up to 12 cultivator licenses, four processor licenses, four dispensary licenses, five integrated facility licenses, and an unspecified number of secure transporter and laboratory licenses.

MCC Vice Chairman Rex Vaughn indicated the state plans to open a second round of licenses for cultivators, transporters, and labs.

“These businesses will not only serve the patients of Alabama but provide business and job opportunities for local communities,” he said in a statement.

The applications for the 90 companies were reviewed by the University of South Alabama.

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New York Approves Emergency Rules to Crack Down on Unlicensed Cannabis Sales

6/15/2023

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New York cannabis regulators are permitted to seize products from unlicensed cannabis retailers in the state under recently adopted emergency regulations. The new rules cover unlicensed sales of both hemp and delta-9 THC products.

The regulations describe the processes by the Office of Cannabis Management (OCM) for shutting down unlicensed cannabis sales, including affixing a notice of violation and order to cease unlicensed activity on a door, window, or exterior of the building, along with a sticker “advising the public that the business is ordered to stop the unlawful activity and of the public health and safety concerns relating to illicit cannabis.”

Removing either the sign or the sticker could result in a $5,000 fine, under the new rules.

The regulations also give the agency subpoena power and the ability to bring the case before an administrative law judge.

In a statement, Chris Alexander, OCM executive director, described the rules as “a robust framework to address violations head-on, bolstering [OCM] enforcement efforts and ensuring proper compliance with cannabis laws.”

New York regulators have been slow to roll out retail cannabis sales. According to state data, there are currently just 13 licensed adult-use dispensaries, with four licensed as “temporary delivery only.”

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Report: Year-Over-Year Pre-Roll Sales Growth Higher Than Other Cannabis Categories

6/15/2023

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Year-over-year sales of pre-rolls were higher than any other product category from 2021 to 2022, according to a white paper by Custom Cones USA. From November 2021 to November 2022, pre-roll sales grew 12% in the U.S. and 38% in Canada, according to the paper, which relies on data from cannabis intelligence company Headset.

In the U.S., infused or “connoisseur” pre-roll sales spiked 1,426% year-over-year in Canada and 22% in the U.S. Mixed strain pre-roll sales grew 440% in Canada, year-over-year, and 63% in the U.S. Since 2021, in the U.S. and Canada, sales of multi-pre-roll packs have grown by almost 400%, the report says.

“Over the past few years, the wholesale price of flower has dropped dramatically, making pre-rolls more affordable. With cheaper cannabis costs, it also allowed producers to use higher quality flower. Additionally, advancements in both table-top and automated pre-roll machines have allowed manufacturers to produce more pre-rolls with lower labor costs. All these factors combined led to higher quality pre-rolls at lower retail price points, which has driven strong growth for the category.” —The State of the Pre-Roll Industry, Custom Cone USA, June 8, 2023

The report notes that while all other product categories are experiencing price compression, pre-rolls are experiencing the lowest compression among all categories. In the U.S., pre-roll prices have fallen just 11%. In Canada, prices have increased by 5%, according to the report.

The majority of pre-roll sales continue to be single-packs; however, from 2018 to 2023, the share of single-pack sales dropped from about 95% to about 80%.

“In 2018 multi-packs of regular and infused pre-rolls only made up 27.7% of the market. By 2023, multi-packs make up 47.62% of the market—representing a growth of about 20% over 5 years,” the report says. “Single pre-rolls are always going to have a place in the industry, so expect their decline to level out soon. Single pre-rolls are the perfect add-on item, and it is common for consumers to pick them up for a specific event or occasion.”

The majority of companies surveyed for the paper (54.3%) said they planned on expanding further into multi-pack pre-rolls.

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Leafwire Launches the Largest Retargeting Audience in the Cannabis B2B Industry, Reaching 3+ Million Connected Devices

6/14/2023

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Traditionally, it’s been almost impossible for advertisers to reach the cannabis business community through banner ads on traditional ad networks, utilizing programmatic advertising.

So How Can You Reach a Cannabis Biz Audience on Sites Like CNN, ESPN, and USA TODAY?

There is no single gender, age, geography, job type, company type or purchasing behavior that defines cannabis business professionals; cannabis professionals can be growers, budtenders, greenhouse builders, accountants, scientists, marketers, lawyers, investors and more. It’s an incredibly diverse community that is very difficult to target.

Cannabis consumers and enthusiasts are easier to reach through a variety of large cannabis shopping platforms like Weedmaps, Leafly and Dutchie, but that’s not the cannabis business community. A B2B solution has been sorely missing.

Of course, there are cannabis news sites and social networks such as MJBiz Daily, Leafwire, and Ganjapreneur to reach a B2B audience, but cannabis business professionals also spend a significant amount of time on mainstream sites surfing the web, like CNN, ESPN and USAToday.com. Until now, the industry hasn’t had a way to reach cannabis professionals on those massive mainstream sites, until now.

The ‘Leafwire B2B Cannabis Omnichannel’

In conjunction with MediaJel and one of the world’s largest ad networks with 10,000+ websites (contact Leafwire for more info), Leafwire has built the largest re-targeting audience in the cannabis business industry. Through partnerships with multiple cannabis news sites and some of the largest conferences in the industry, Leafwire has amassed an audience of cannabis business professionals consisting of more than 500,000 recognizable ‘digital fingerprints’ creating the ‘Leafwire B2B Cannabis Omnichannel.”  Now advertisers can purchase ads across 10,000+ sites, like CNN, ESPN and USA Today, and target only a true cannabis business audience.

“Just like real estate is all about ‘location, location, location’, successful marketing relies on ‘targeting, targeting, targeting.’ This is the power of the new ‘Leafwire B2B Cannabis Omnichannel.’ You can now advertise almost everywhere online, but reach ONLY the audience you want to target,” said Jake Litke, CEO of MediaJel.

3.2 Million Devices

In addition, those 500,000 digital fingerprints were matched to more than 3.2 million devices (including phones, tablets and desktop computers), and the ‘Leafwire B2B Cannabis Omnichannel’ can be targeted on all of those 3.2 million devices.

The beauty of programmatic advertising is the frequency with which you can reach your targeted audience. CPMs (cost per thousand impressions) tend to be around $20, so for a $10K campaign, you are able to show 500,000 impressions (or ad units) to your targeted audience. The goal is typically to show your banners to a specific person between 20-30 times in order to drive engagement (that’s the modern equivalent of the ‘7X’ marketers used to use as a Golden Rule).If you do the math, if you have 500,000 impressions, you have a chance to show your banners/ads to 16,666 professionals – 30X each (16,666 individuals X 30 times = 500,000 impressions).

In addition, programmatic advertising is based on optimization; if a campaign starts off showing ads on 2,000 sites, the optimization engine begins to show more ads on sites producing clicks, so the campaign is continuously improving as it runs longer –  like fine wine, it gets better with age.

What Type of Advertiser Should Take Advantage of the ‘Leafwire B2B Cannabis Omnichannel’?

If you’re looking to sell your products and services to the cannabis & hemp business community, the ‘Leafwire B2B Cannabis Omnichannel’ is for you.

It doesn’t matter if you’re promoting payment processing, insurance, lighting, packaging, vape hardware, wholesale CBD, consulting services or technology, your target is the same – cannabis business owners and cannabis business professionals.

That’s the audience we’ve amassed on the ‘Leafwire B2B Cannabis Omnichannel’- a super targeted list of cannabis business owners and professionals … And they’re waiting to hear from YOU.

For more information on the ‘Leafwire B2B Cannabis Omnichannel,’ please reach out to us at Leafwiremedia.com.

 

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Catalyst Cannabis Sues Glass House Brands Alleging Illegal Product Diversion

6/14/2023

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California-based Catalyst Cannabis last week filed a lawsuit against Glass House Brands Inc. alleging the company “has become one of the largest, if not the largest, black marketers of cannabis” in the state.  

The lawsuit, claiming violations of the state’s Business & Professions Code, comes about a month after Catalyst CEO Elliot Lewis took to social media in front of a whiteboard and made similar claims about Glass House using “fourth-grade math” and its May 15 First Quarter 2023 Financial Results to allege that Glass House is “the biggest black marketeer … in the history of the United States.”  

In the lawsuit, Catalyst says that prior to the May 15 report, Glass House had indicated that cannabis cultivation capacity in California had dropped 21%, flower prices fell over 20%, and there are 1,200 fewer active cultivation licenses; but meanwhile, the company’s report predicts a 62% increase in its own cannabis production from 2022 to 2023. In the May 15 report, Glass House also estimates its revenues would increase “upwards of $160 million.”     

The lawsuit contends that Glass House “has specifically and intentionally structured its business operations to capitalize on the black market and to separate its legal operations from its illegal operations.”

“Separate and apart from its legal distribution channels [Glass House Brands] maintains a network of distributors specifically to handle the illicit black market sales of its cannabis,” the lawsuit contends, further claiming that by using Glass House’s own, publicly available information, it can be determined that in the fourth quarter of 2022 “upwards of 75%” of Glass House’s sales during the reporting period “were outside the legal market.”    

Further, the lawsuit claims that Catalyst “has received information indicating that in many (if not most or all cases) [Glass House Brands] employees themselves seek out and make deals directly with black marketers, both in California and other states … and then use burner distros as ‘brokers’ or middle-men to transport the cannabis to illicit purchasers/users.” 

The lawsuit describes “burner distros” as companies that are “generally licensed with the state but evade the payment of state taxation, as well as various safety and other regulations and controls, by selling to the black market.” The lawsuit does not name these companies.   

“The dual channels approach permitted [Glass House] to substantially benefit from illegal sales while also ensuring prices in the legal market did not collapse entirely. … The dual channel structure it has employed is a huge ‘win-win’ for [Glass House Brands], but a huge loss for Catalyst and other legal operators who lose sales to illegal dispensaries and are required to actually pay the mandated taxes that are not paid in the black market transactions.” — Catalyst in the complaint 

The lawsuit claims Glass House “engaged in illegal, fraudulent and unfair acts and business practices” calling for the activity to be “preliminarily and permanently enjoined.”  

In an email to Ganjapreneur, Lewis said he had three objectives for filing the lawsuit: “overall state tax reform,” forcing Glass House “to stop flooding the black market with their product,” and to “keep diversity of product or craft farmers in the marketplace without giving what should be a clearly broken business model the ability to kill off small farmers…by using the black market as a piggy bank.”   

“I think glasshouse is super unique case and I have wrestled with the filing of the litigation internally in my head quite a bit. And even today I continue to wrestle with it, and even more so, the ‘landing of the plane,’” Lewis wrote in the email. “Take off is much easier. Sometimes intention and outcome aren’t the same thing. We strive to play it day to day and try to make it so there is good outcome from all. If [Glass House] took reasonable measures to stop flooding the Black Market today, I would happily drop the lawsuit.” 

Lewis added that he “had no intention” to get “involved in anybody’s personal business affairs” but that Glass House’s claims “seemed over the top and so hypocritical” and their actions “harmful to the industry as a whole.” 

The lawsuit was filed in Los Angeles County Superior Court.  

Glass House did not respond to requests for comment. 

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Report: New Mexico Cannabis Industry Employs 4,600+ Workers

6/14/2023

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A report by the New Mexico Department of Workforce Solutions found that at the end of last year, the state’s cannabis industry employed more than 4,600 workers and about 88% of those workers were employed by dispensaries.   

According to the report, the vast majority of cannabusinesses in the state were retailers (112), followed by agricultural (21), manufacturing (10), wholesale trade (4), and all other sectors (4). 

Agricultural workers comprised 3.7% of cannabis industry workers, with the manufacturing sector employing 3%, wholesale trade employing 2.6%, and all other sectors employing 2.4%, the report says.  

Cannabis industry workers in New Mexico earned an average weekly wage of $560 a week during the fourth quarter of 2022, the report says, which was lower than all other industries in the state except for accommodation and food service, which had an average weekly wage of $474. The agency also found that cannabis industry wages have fluctuated since the first quarter of 2021 – when the average weekly wage was $655. The industry’s weekly wage peaked in the fourth quarter of 2021 at $715, according to the data, but fell the following quarter to $588, before rising to $622 in the second quarter of 2022, and $661 in the third quarter.  

The fourth quarter weekly wage in 2022 was the lowest since the first quarter of 2021.   

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Lawsuits Filed After Montana Gov. Vetoes Bill to Fund Roads Using Cannabis Taxes

6/14/2023

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Two lawsuits in Montana are challenging Gov. Greg Gianforte’s veto of a bill that would have used cannabis taxes as a supplement to county road maintenance funding, the Great Falls Tribune reports. The lawsuits, filed by the Montana Association of Counties (MACo) and the Montana Wildlife Federation, allege the governor violated the state’s constitution by waiting until after the state Senate session ended before submitting his veto of the legislation. 

The lawsuits also name Montana Secretary of State Christi Jacobsen as a defendant, claiming she has failed to call for a poll of state legislators to potentially overturn the governor’s veto.    

In an interview with the Tribune, Roman Zylawy, MACo president and Mineral County commissioner, said “The Legislature’s constitutional check on the executive branch is critical to Montana’s legislative process.” 

“The intent of our Constitution is clear. The Legislature must be given fair opportunity to override a veto.” — Zylawy to the Tribune 

The bill, SB442, would have allocated 20% of the tax revenues generated by cannabis sales to counties for road maintenance and would have amounted to about a $10.4 million annual supplement across the budgets of Montana’s 56 counties. 

Gianforte, a Republican, said during legislative debate that his preference was to spend the funds on public safety and law enforcement, the report says. On May 2, the last day of the Montana Senate’s session, Gianforte’s veto of the bill was not delivered to the state Senate leadership before the session had been dismissed, thus depriving lawmakers of the opportunity to override the governor’s veto. The law had been approved by 130 lawmakers from both chambers of the legislature on both sides of the aisle. 

“Adopting the approach of Senate Bill 442 creates a slippery slope, an incentive for local jurisdictions to reduce their services while keeping taxes higher on their citizens,” Gianforte wrote in his veto letter. “Instead of cutting citizens’ taxes proportionately, they can reallocate those dollars to capricious, unnecessary projects, resulting in the net increase of Montanan’s tax burden.” 

Petroleum County Commissioner Craig Iverson said the governor’s view that the funds would be used for “capricious, unnecessary projects” did not align with the reality of county budgets.  

“There’s no fluff anywhere, no capricious projects at all,” Iverson told the Tribune. “We struggle with the amount of money that we’re given trying to get across 550 miles of roads and do a good job. We enjoy that the recreationalists can come out to Petroleum County and do what they do, but it’s sure hard on the locals to maintain a road that we would like to have and use as well.” 

The lawsuits demand that Gianforte be required to return the bill, along with his reasons for the veto, to the Secretary of State’s Office, and that the secretary of state poll the legislature to determine whether a two-thirds majority exists to overturn the veto. 

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Barney’s Farm Launches BarneysFarm.us With Fast & Secure Local Shipping

6/13/2023

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The renowned cannabis seed bank Barney’s Farm has launched their USA website www.barneysfarm.us. The launch will bring the finest cannabis seeds, straight from the source, to cannabis enthusiasts across the nation. And with all seeds shipped from their USA warehouse, you can expect quick delivery to any state!

From humble beginnings to global giants

Barney’s Farm, founded in the 1980s by Derry, began as a small venture in the Netherlands, driven by a passion for cannabis genetics and a commitment to innovation. Over the years, the brand has garnered an exceptional reputation for its premium cannabis strains, winning numerous awards and global recognition.

Barney’s Farm quickly became a household name among cannabis aficionados, with its Amsterdam-based coffeeshop attracting visitors from around the world.

The secret behind Barney’s Farm’s success lies in its commitment to quality, innovation, and the pursuit of the finest cannabis genetics. By tirelessly traveling the globe and collaborating with experienced breeders, the team at Barney’s Farm has created a diverse and unparalleled collection of cup winning strains, each with its own unique characteristics, flavours, and effects.

Embracing the US market

The launch of the USA-based www.barneysfarm.us website is a strategic move by Barney’s Farm, as they recognize the tremendous growth of the American cannabis industry and its potential for further expansion. With more and more states legalizing cannabis for medical and recreational use, the demand for high-quality seeds is on the rise. Barney’s Farm aims to cater to this growing market by providing a user-friendly platform that offers their entire collection of premium cannabis seeds.

The new website not only makes it easier for US customers to access Barney’s Farm’s extensive catalog, but it also streamlines the purchasing process, offering secure payment options and speedy shipping from their USA warehouse to any state. This move reaffirms Barney’s Farm’s commitment to their American customers, ensuring they receive the same top-notch service and products that European customers have enjoyed for years. Wholesale services will also be available.

Unmatched quality

As a customer of Barney’s Farm’s new USA website www.barneysfarm.us, you can expect nothing less than the best. From legendary strains like Pineapple Chunk and Critical Kush to innovative new cultivars such as Glookies and Blue Gelato 41, the options are vast and cater to every taste, preference, and experience level.

Whether you’re a home grower seeking high-yielding strains, a medical user in search of specific therapeutic effects, or a connoisseur on the lookout for unique terpene profiles and flavors, Barney’s Farm has you covered. With detailed descriptions and in-depth information on each strain, you can make informed decisions and embark on your cannabis cultivation journey with confidence.

And here’s a special tip: sign up for Barney’s Farm newsletter to joinin the community of savvy growers who receive exclusive free seed offers and promotions, available only to Barney’s Farm’s loyal subscribers.

The launch of Barney’s Farm’s US-based operation marks an exciting new chapter for cannabis enthusiasts across the nation. With a wealth of knowledge, unparalleled quality, and a commitment to customer satisfaction, Barney’s Farm is set to become the go-to source for premium cannabis seeds in the United States. Sign up for the newsletter to stay up to date on exclusive offers and promotions, ensuring you never miss out on the best deals.

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Leafly Removes Articles Investigating Worker Death at Trulieve Facility

6/13/2023

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Online cannabis platform Leafly recently removed two in-depth articles investigating the death of cannabis worker Lorna McMurrey, 27, who passed away after collapsing during her shift at a Trulieve cannabis factory in Holyoke, Massachusetts. Mike Crawford, the host of The Young Jurks podcast in Massachusetts, which broke the news of McMurrey’s death, first posted about the articles’ removal last week on LinkedIn.

Leafly, which closed down its newsroom in March after reporting financial difficulties, offered no explanation for why the stories were pulled, according to a WeedWeek report investigating the missing articles.

Part 1 and Part 2 of Leafly’s removed investigative series can still be accessed via the Internet Wayback Machine. Written by Dave Howard, the articles focus on the cause of McMurrey’s death — the federal Occupational Safety and Health Administration (OSHA) originally concluded that McMurrey had died from inhaling “ground cannabis dust” but months later called it the result of a deadly asthma attack — and whether the tragedy had revealed unrecognized worker safety concerns in the cannabis industry.

Howard told WeedWeek that he didn’t know why the articles were removed:

“I worked hard on that series, as did my editor, and we felt it had the potential to help people in the industry. Anytime you have the chance to help someone avoid health problems, you take it.” — Howard, via WeedWeek

Trulieve, a Florida-based multi-state cannabis operator, paid a $14,502 settlement to OSHA in January over the incident and agreed to investigate the potential dangers of ground cannabis dust. Meanwhile, the company recently announced its departure from the Massachusetts state market.

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New York Lawmakers Approve Bill to Allow Farmers to Sell Cannabis to Tribes

6/13/2023

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New York lawmakers have approved a bill to allow licensed cannabis farmers to sell their products to tribal nations that have launched their own cannabis markets, WRGB reports. The approval comes amidst the state’s slow retail rollout, while dispensaries have opened on tribal land throughout the state. 

New York has licensed about 300 growers and 40 processors but there are just 12 licensed dispensaries statewide.   

Jason Ambrosino, the owner of Veterans Hemp Market and Veterans Holdings, told WRGB that his company is sitting on “closer to $325,000 worth of product” because of the lack of retailers. 

The Shinnecock Nation and Seneca Nation both expressed support for the bill.  

Tela Troge, Esq. vice-chairperson for the Shinnecock Nation Cannabis Regulatory Division, said the bill is “beneficial for consumers who will enjoy increased access to safe and tested recreational product.”  

“… It will provide near immediate relief to farmers who are in great financial distress due to lack of a market for their product, while opening a meaningful market for New York’s Tribal Nations.” — Troge to WRGB 

In a letter to the bill’s sponsors, the Seneca Nation said it believes the measure “reflects the type of commonsense partnership between sovereigns by allowing Native Nation-regulated retailers to purchase cannabis and cannabis products that otherwise may be wasted.” 

The measure still requires the governor’s signature before becoming law.

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Connecticut Cannabis Sales Reach $23M in May

6/13/2023

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Combined adult-use and medical cannabis sales in Connecticut totaled nearly $23 million in May, according to state Department of Consumer Protection data. Adult-use sales topped $11.5 million during the month, while medical cannabis sales reached $11.2 million. 

During the month, 312,758 medical cannabis products were sold, with an average price of $35.86, while adult-use consumers purchased 292,054 products, with an average price of $39.47.  

Adult-use sales totals in May were the highest since the launch of legal sales in January, topping the previous record of $10.2 million recorded in April. Medical cannabis sales fell slightly in May from the $11.4 million recorded the previous month. 

The average adult-use cannabis product price also reached its lowest level since adult-use sales commenced but fell only slightly from April’s average price of $39.48. Medical cannabis sales have remained stable but May’s average product price was the second lowest since January.  

The prices reported by the agency do not include taxes, which are based on milligrams of total THC for edibles and concentrates. Flower sales include the state’s usual 6.35% sales tax, a 3% tax that goes to the municipality where the sale occurs, and a tax based on THC content. Medical cannabis sales are untaxed.  

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Ottawa Public Health Wants Cannabis Packaging to Feature Graphic Warnings Similar to Cigarettes

6/13/2023

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Regulators in Ottawa, Canada are seeking to put graphic warning labels on cannabis product packaging that are similar to those on cigarettes, the CBC reports. The recommendation from Ottawa Public Health (OPH) comes as the federal government is seeking recommendations to Health Canada to update cannabis rules.  

Under the OPH proposal, cannabis products packaging would “include graphic health warnings, similar to cigarette packages.” Cigarette packaging in Canada includes images of severe health problems caused by smoking. Cannabis packaging in Canada is required to be plain, with only a standardized cannabis symbol and warning message, and product information.     

“Research on cannabis shows that plain packaging and health warnings reduces brand appeal and increases health knowledge among youth and young adults.” — OPH in its submissions to Health Canada via CBC 

OPH also wants to ban words on cannabis products that could appeal to children, like “candies,” and seeks to prohibit companies from using “shapes, sprinkles, and colors” for edibles, which could also appeal to children. 

As Health Canada seeks to update the rules, the Competition Bureau, Canada’s competition watchdog, has recommended that the nation loosen some if its rules, including allowing higher THC limits in edibles, and easing packaging restrictions, the CBC reports. The group is also recommending that regulators review the licensing process and related regulatory compliance costs to ensure that they are minimally intrusive to competition.  

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