Katrina Skinner: How Compliance Software Helps Streamline and Protect Cannabis Brands

4/04/2023

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Between cultivation, the manufacturing of edibles and other products, and retail responsibilities, cannabis companies from all corners of the industry have a lot on their plate — and the hyper-regulated conditions that cannabis operators wade through each day create even more complications and potential pitfalls. Luckily, companies like Simplifya, the automated operational compliance platform, can help safeguard cannabis entrepreneurs from regulatory penalties.

In this Q&A, Simplifya’s General Counsel and Chief Banking Officer Katrina Skinner discusses the role of compliance technology in the industry and describes how automating compliance can both boost efficiency and reduce costs. This interview also covers how Simplifya stays on top of shifting regulations, how the company onboards services for a new market as it opens up, and more!

Scroll down for the full interview:

Ganjapreneur: What is Simplifya’s role in the cannabis industry?

Katrina Skinner: Simplifya is the country’s leading automated operational compliance platform. Our products can be used as critical components of a comprehensive risk-based compliance plan to automate tasks, create accountability, communicate successes and challenges, and provide the reporting management needs to identify and mitigate risks.

As Chief Banking Officer and General Counsel for Simplifya, what do your daily duties look like?

Much of my day is spent evaluating opportunities and helping implement strategies that help drive the adoption of Simplifya’s products and services. In doing so, I am privileged to work across all departments as well as work with outside third-parties that are close strategic partners. I also spend time educating others about effective cannabis compliance programs for businesses providing financial services.

How has compliance-oriented technology helped to evolve the cannabis space?

Compliance-oriented technology has modernized the cannabis industry by bringing much-needed tools that traditional highly-regulated industries have had for years, including financial services. Automated compliance platforms create efficiencies and cost savings by helping to protect cannabis licenses and by creating a digital paper trail that proves such efforts have been undertaken, making compliance easier for those who are tasked with implementing programs. By using these tools, rather than having to divert a ton of time, energy and money to handle compliance tasks that can be automated, businesses have the ability to redirect staffing to areas that support and facilitate expansion. Compliance becomes drastically easier, even in a difficult regulatory environment that lacks standardized regulations.

As a new cannabis market matures, does the demand for compliance services fluctuate?

I think it’s a common misconception that demand for compliance services decreases when a market matures. While regulations and compliance tasks may become more familiar and easier for licensed operators to understand and adhere to over time, regulators are also becoming more adept at enforcement and coming to understand the industry, its players, dynamics and intricacies inside and out. New regulations are issued each month and current regulations are constantly changing. The fact of the matter is: the cannabis industry is incredibly complex, and the complexities and nuances will continue to grow; thus comprehensive compliance programs are essential. The demand for specific compliance services may shift, but the overall need for compliance services will always be there.

Another misconception is that once federal prohibition ends, compliance services will become obsolete. In reality, rules will just get more complicated and layered and enforcement will ramp up when the federal government can get involved. Like alcohol laws, local jurisdictions would still be able to ban cannabis and impose their own restrictions. Federal laws will just be layered on top of state and local ordinances.

How does customer feedback influence Simplifya’s services?

Unsurprisingly, Simplifya is like any other service provider – we want operators and ancillary companies throughout the cannabis ecosystem to recognize our value-add and to be motivated to buy our products and services. Simplifya is committed to obtaining and reviewing client feedback, as well as constantly working to improve our products by implementing suggestions made by our current customers. Simplifya will even make significant changes to its content and product offerings if clients ask; however, of course we must consider the return on investment before doing so, as well as gauging popular consensus among clients.

What people don’t always appreciate is that our Regulatory Affairs team is constantly reviewing current regulations, proposed changes to regulations, and new regulations coming into every market in real time. The team goes through great pains to “simplify” the content to make the rules understandable for all compliance team members who use our products. Since the cannabis industry changes all the time, so does Simplifya’s content. We understand keeping abreast of the most current information is critical to ensuring compliance, and we want to be the tool compliance departments rely upon. Ultimately, Simplifya brilliantly combines automation with human insights, and to the extent we can refine our products to meet demand, we will do so.

Could you describe the process of expanding Simplifya’s services to a new state, market, or industry?

Simplifya’s Regulatory Affairs and Sales teams constantly monitor developments in new states. Using a proprietary process, our policy experts streamline final rules and regulations into the Simplifya format that the developers use to create content. Then our teams review the content, and then it goes through a legal and quality assurance review before being released. After new content is released, Simplifya team members watch for bugs and fix any that may arise. Once we wrap up putting out our core products in a state, the Reg Affairs team moves to the next state where there is sufficient demand and/or a request from a current customer, to repeat the process. It takes roughly 30 days to bring a new state online. So far our core products, which include SOPs, digital document storage, self auditing and license tracking are in 28 states and this number is growing.

What are you most excited about for the future of Simplifya and the cannabis industry in general?

The adoption of more automated compliance solutions is going to be exciting for Simplifya because we are committed to supporting the industry with relevant and useful technology, so as the markets grow, so too will Simplifya. And as for the cannabis industry in general, I am most excited about watching how the industry will continue to navigate tough market conditions so it evolves and becomes stronger and more mainstream with each passing year.

What’s your advice to entrepreneurs as they enter and/or navigate the cannabis space?

Prepare yourself for constant change, embrace learning opportunities, and don’t be afraid to ask for help. The learning curve is steep, so why not make the climb easier with advisors, mentors, and colleagues?

Thank you, Katrina, for sharing with our audience! Readers can visit Simplifya.com to learn more.

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Missouri House Approves Measure Requiring State to Conduct Psilocybin Mental Health Studies

4/04/2023

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The Missouri House last week approved a measure that would require the state to conduct studies on psilocybin to treat depression, substance abuse, post-traumatic stress disorder, or use as part of end-of-life care, the Missouri Independent reports.  

This bill requires the state Department of Health and Senior Services (DHSS) to provide more than $2 million in grants for the research, subject to lawmakers approving the appropriation. The state would collaborate on the study with a Missouri university hospital or medical center operated by the U.S. Department of Veterans Affairs in Missouri.   

In June, Miriam E. Delphin-Rittmon, assistant secretary for mental health and substance use, wrote to U.S. Rep. Madeleine Dean (D-PA) that federal Food and Drug Administration approval of psilocybin to treat depression was likely within the next two years, the report says. However, state Rep. Tony Lovasco (R), who has previously sponsored similar legislation, told the Independent that two years is a long time to wait.

“The folks that are coming back from war, that are in desperate need of care, a lot of them aren’t going to be around in three years. We’ve got, what 20-something veterans per day committing suicide? That’s a tremendous amount of loss while we wait for the government to do some paperwork.” — Lovasco to the Independent 

Suicide rates in Missouri are about 25% higher than the national average, the report says, and research suggests psychedelic therapies, such as psilocybin, can be efficacious in treating conditions that may cause individuals to consider committing suicide.

State Rep. Aaron McMullen (R), a combat veteran who served in Afghanistan, said during the debate that “Substance abuse and suicide are escalating in the veterans community.”

“While psilocybin is not a panacea for every issue,” he said, “it represents a first true scientifically-validated hope that we have to address this crisis.”

The legislation still requires approval from the Senate and governor before becoming law.

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Washington State Psychedelic Therapies Bill Pared Down to Pilot Program

4/04/2023

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A bill to allow psychedelic therapies in Washington state has stalled, but lawmakers are considering legislation to allow military veterans and first responders to access a pilot program for the treatment, the Seattle Times reports. The pilot program bill has passed the Senate and last week was approved by the House Committee on Health Care and Wellness. 

Under the measure, pilot program participants would have to be 21 and older, and have experienced substance use disorder, depression or anxiety, or post-traumatic stress disorder. They would also have to pass an assessment before being accepted into the program, the report says.  

The measure would also create three separate collaborations between state agencies: one would be a Psilocybin Advisory Board through the Department of Health that would advise and share recommendations with the state’s Liquor and Cannabis Board in addition to the state Department of Agriculture. A separate work group among those agencies would develop a regulatory framework for psychedelic therapies.  

In an email to state Sen. Jesse Salomon (D), the original bill’s sponsor, in early February, Samantha Pskowski, the governor’s policy adviser for public health, said the bill creating a psychedelic therapy program “would create a system for regulation and use of psilocybin that is not supported by the available scientific and medical evidence.” State officials contend that psychedelic therapy research is limited, and the original bill puts the “health and safety of Washingtonians at risk.” 

During testimony on the proposal, Dr. Anthony Back, a University of Washington researcher who is working on a trial about psychedelic-assisted therapies’ ability to support health care workers with burnout, said he thinks “waiting for three years or waiting for more years, is not doing justice to the mental health crisis” that he is “seeing now.”  

If the bill is approved, the pilot program would need to be implemented no later than January 1, 2025.   

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Report: Cannabis Removed from NBA Drug Testing Protocols

4/03/2023

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Cannabis has been removed from the National Basketball Association’s (NBA) drug testing program under a tentative Collective Bargaining Agreement (CBA), according to a report from The Athletic. The CBA still needs to be ratified by players and team governors before being finalized. 

Cannabis testing for NBA players has been suspended for the past three seasons but the proposed CBA permanently removes cannabis from the league’s testing protocols.

The news was first reported by The Athletic reporter Shams Charania on April 1. 

“Sources: NBA players will no longer be prohibited for marijuana under the new seven-year Collective Bargaining Agreement. It’s been removed from the anti-drug testing program, a process that began during 2019-20 season.” — Charania via Twitter 

Of the 30 NBA teams, 15 are based in locals where cannabis is legal for adult use – including the Canada-based Toronto Raptors and the Washington D.C-based Wizards. The remaining teams are based in states that have legalized cannabis for medical use.   

In a statement posted to Twitter, the NBA Players Association – the players’ union – announced they had reached a CBA deal on April 1 but that “Specific details will be made available once a term sheet is finalized.” 

Last March, Major League Baseball (MLB) announced that players are allowed to use cannabis during off-hours but that they could not show up to team workouts or events under the influence and they could not invest in cannabis companies. While the National Hockey League (NHL) does test for cannabis, there is no punishment for a positive test. Once the NBA’s CBA is finalized, the National Football League (NFL) will be the only major U.S. sports league to test and penalize players for cannabis use.  

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Kentucky Gov. Signs Medical Cannabis Bill Into Law

4/03/2023

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Kentucky Gov. Andy Beshear (D) last week signed the medical cannabis bill into law just one day after lawmakers gave it final legislative approval. Beshear signed the measure along with a bill to legalize sports betting in the state.  

“I have been pushing for medical cannabis and sports betting for years. Today, I signed these two bills into law. Team Kentucky delivers and we get results. Congrats, Kentucky.” — Beshear via Twitter 

Beshear last year signed an executive order to legalize the possession of cannabis by some individuals suffering from severe medical conditions. Those reforms took effect on January 1, allowing individuals with a medical provider’s statement to possess up to eight ounces of cannabis for medical purposes if purchased legally in another state.  

During the bill’s signing on Friday, Beshear described that system as “imperfect.”  

“… We needed legislative action, and last night, the General Assembly delivered,” he said, according to a WLKY report.      

The measure does not allow patients to access smokable cannabis products but permits edibles and concentrates. The bill’s qualifying conditions for the medical cannabis program include: any type or form of cancer, regardless of the stage; chronic, severe, intractable, or debilitating pain; epilepsy or any other intractable seizure disorder; multiple sclerosis, muscle spasms, or spasticity; chronic nausea or cyclical vomiting syndrome that has proven resistant to other conventional medical treatments; and post-traumatic stress disorder. The measure allows the Kentucky Center for Cannabis Research to add medical conditions to the list. 

 Under the law, medical cannabis is set to be available in Kentucky on January 1, 2025. 

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Washington D.C. Cannabis ‘Gifting’ Businesses May Obtain Medical Cannabis License

4/03/2023

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Washington, D.C. businesses with a history of “gifting” cannabis will be allowed to obtain a medical cannabis license under a law that took effect in the District late last month, WTOP News reports. There are currently over 100 shops in D.C. that sell items at inflated prices and include cannabis equal to the purchase price, the report says.

The law also expands the types of licenses that retailers may apply for, including internet retailer and a courier license for cannabis deliveries, as well as “safe-use facility endorsement” to allow events, such as tasting or sampling events, cannabis-based cooking classes, and summer garden events that allow sales in private outdoor spaces.

The law sets aside at least 50% of the new cannabis licenses for social equity applicants. Retailers have 90 days to apply for a license and civil enforcement of the new licensing program won’t begin for 315 days, the report says.

In August, the city council approved a law to allow DC residents 21-and-older to self-certify for medical cannabis, providing them immediate access to medical cannabis. Adult-use cannabis is legal in D.C.; however, adult-use sales have been blocked by a rider in the congressional budget prohibiting local officials from spending funds on setting up the industry. D.C.’s budget is set forth by Congress.

The bill also changed the name of the Alcoholic Beverage Regulation Administration to the Alcoholic Beverage and Cannabis Administration (ABCA).

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Kentucky Passes Medical Cannabis Legalization Bill

3/31/2023

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Kentucky lawmakers on Thursday passed a bill to legalize medical cannabis in the state, moving the legislation to Democratic Gov. Andy Beshear (D), Spectrum News 1 reports. Beshear, on Twitter, said he plans to “proudly” sign the legislation today. The measure does not include smokable forms of cannabis but would allow patients enrolled in the program to access edible and concentrate products. 

Last year Beshear signed an executive order to legalize the possession of cannabis by some individuals suffering from severe medical conditions. Those reforms took effect on January 1, allowing individuals with a medical provider’s statement to possess up to eight ounces of cannabis for medical purposes if purchased legally in another state.      

State Rep. Jason Nemes (R), who sponsored a medical cannabis bill last year that did not get a vote in the Senate, told Spectrum News that medical cannabis products allowed under the law must be cultivated by licensed Kentucky growers, tested by licensed laboratories in the state, and that the legislation contains THC caps.

“This is not a wink, wink, nod, nod bill. We want those who are running, or in this program, to be held accountable when they misbehave. And if they misbehave, they need to go to prison, a Kentucky prison.” — Nemes to Spectrum News 

On Twitter, Beshear noted that medical cannabis legalization is “something the majority of Kentuckians support” and said he was “thankful this progress has been made.”  

The measure passed the Senate 66-33. Once signed into law by the governor, the bill will take effect Jan. 1, 2025. 

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Montana Lawmakers Table Bill to Eliminate Adult-Use Cannabis Sales

3/31/2023

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A Montana Senate committee on Thursday voted to table a controversial bill that aimed to eliminate adult-use cannabis sales in the state, the Montana Free Press reports. The measure also included a provision to raise the tax on medical cannabis products from 4% to 20%. 

The Senate Business, Labor and Economic Affairs Committee voted 6-4 to table the bill with Senate President Jason Ellsworth, Committee Chair Jason Small, and Sen. Walt Sales – all Republicans – joining all three Democratic members to oppose the bill. The committee ultimately tabled the bill unanimously. 

Cannabis legalization was approved by voters 57% to 43% in 2020. During the panel debate, Democratic state Sen. Willis Curdy said he was concerned and “really nervous about undoing the people’s will.” 

State Sen. Keith Regier (R), the bill’s sponsor, argued that “there have been several examples of the will of the voters being reversed” but two of the three examples he cited were initiatives that had been turned over by courts, not lawmakers, the report says.   

According to the bill text, the measure intends to “reduce the demand for marijuana sales” in Montana. Adult-use cannabis sales in the state have generated $54 million in tax revenues since sales commenced in January 2022. Less than one-tenth of that revenue came from medical cannabis taxes, while adult-use sales are taxed at a 20% rate by the state and some counties add an additional 3% local tax.        

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South Dakota Medical Cannabis Company Sues Health Department Over Alleged Overreach

3/31/2023

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A South Dakota medical cannabis company is suing the state Department of Health (DOH) alleging overreach, attempts to enforce unpromulgated rules, and the improper issuance of violations which has led to damages of over $1 million, KELO reports. The case by 605 Cannabis dates back to an inspection of their facility in January which the company claims was carried out improperly and conducted while the facility was partially closed due to a blizzard. 

In the complaint, 605 claims that DOH inspections are required under law to occur during normal business hours and that the health department’s inspection occurred while 605 was operating with limited staff, “not fully operational, not open during its normal business hours, and key staff members were not present.” 

605 claims that during the inspection, samples of cannabis and products were taken and the DOH later issued a report containing 19 alleged violations. On February 8, the health department issued an emergency order, identifying nine serious violations from the inspection, and suspending 605’s manufacturing and cultivation licenses, the report says. 

In the complaint, 605 outlines the nine DOH violations and contends that the agency erred in its evaluation and subsequent enforcement action and that minor violations, such as a camera blind spot, have been remediated. The company indicated it has attempted to reach a settlement with the DOH but has been unsuccessful. 

605 claims a loss in revenue of $1.3 million due to the suspension of its licenses and that its rights have been violated as a result of the DOH misapplying and/or circumventing proper rulemaking procedures. 

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Montana Bill Aims to Eliminate Adult-Use Cannabis Sales

3/30/2023

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A bill proposed in Montana would eliminate adult-use cannabis dispensaries in the state and raise the tax on medical cannabis from 4% to 20%, the Montana Free Press reports. According to the bill text, the measure, sponsored by state Sen. Keith Regier (R), intends to “reduce the demand for marijuana sales” in Montana.  

The measure, which carries no co-sponsors, is currently in the chamber’s Business, Labor, and Economic Affairs Committee.  

Adult-use cannabis sales in Montana have generated $54 million in tax revenues since sales commenced in January 2022, the report says. Less than one-tenth of that revenue came from medical cannabis taxes, while adult-use sales are taxed at a 20% rate by the state and some counties add an additional 3% local tax.   

Regier’s legislation would also cap the THC potency for cannabis flower sold in the state’s medical cannabis program at 10%; under current state law, that limit is 35%. The measure would also halve the amount of THC allowed in an edible product, from 10 milligrams to 5 milligrams, and would prohibit concentrates from containing more than 10% THC. 

Zach Block, the owner of Montana Canna, told the Free Press that those THC limits on medical cannabis products “would take our collection of effective products and diminish them into something unrecognizable and not necessarily sufficient to consumers and patients.” 

He added that Regier’s bill would render the state’s adult-use cannabis program “worthless” for operators and consumers. 

“You’d be delivering a subpar product to a small group of people,” he told the Free Press, “and you’re ignoring the majority of the worthy demographic.” 

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New York Judge Narrows Scope of Dispensary Licensing Injunction

3/30/2023

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A New York Appeals Court judge on Tuesday narrowed the preliminary injunction on the state’s conditional adult-use retail dispensary (CAURD) plan to only include the state’s Finger Lakes region. The lawsuit, by Michigan-based Variscite NY One, had affected 63 of the 150 licenses set to be awarded to social equity applicants and prohibited licenses from being granted in the region along with Brooklyn, Central New York, the Mid-Hudson Area, and Western New York.   

The decision by Judge Gary L. Sharpe will allow the state to move forward with issuing 38 licenses in Brooklyn, 14 in the Central region, 34 in the Mid-Hudson region, and 22 in the Western region. The 18 licenses in the Finger Lakes region will remain in limbo.  

The decision does not indicate why the judge determined to narrow the scope of the original circuit court injunction.    

In the case, Variscite argues that requirements that applicants must have a cannabis-related conviction under New York state law and significant ties to the state violate constitutional protections of interstate commerce. Those rules exclude people who had been arrested on cannabis-related charges in New York, but not convicted, and those who had only federal or out-of-state convictions. The regulations also require that applicants be headquartered in the state.  

Variscite did not qualify for one of the first licenses, according to the initial complaint, because the company is based in Michigan. Varacite’s majority owner, Kenneth Gay, was convicted of a cannabis offense in Michigan. Despite the state’s rules, Varacite applied anyway, listing the five regions affected by the original injunction as preferred locations on its application.   

Earlier this month, officials doubled the number of available cannabis licenses to 300. Tremaine Wright, chair of the Cannabis Control Board, said the license expansion will allow more entrepreneurs to “participate in the first wave of this industry, allowing them to capitalize on the growing demand for cannabis products.”    

New York has so far been slow to award licenses which has led to a proliferation of unlicensed shops selling cannabis throughout the state. Gov. Kathy Hochul (D) last week proposed legislation to crack down on illegal operators, including imposing $10,000 fines per day of unlawful operations.  

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Virginia Gov. Proposes CBD Carveout for Crackdown on Hemp-Based THC Products

3/30/2023

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Virginia Gov. Glenn Youngkin (R) is proposing a CBD carveout to a proposed state law that would enact strict regulations on hemp-derived THC products, the Virginia Mercury reports. Under the governor’s plan, hemp products that contain a 25:1 ratio of CBD to THC would not be affected by the broader hemp industry reforms being considered by lawmakers.  

Youngkin spokeswoman Macaulay Porter told the Mercury on Tuesday that the amendment continues the governor’s “efforts to crack down on dangerous THC intoxicants including synthetic products such as delta-8.” 

The bill includes the original measure’s fines of $10,000 per day for businesses selling unlawful or mislabeled products and the $1,000 registration fee for businesses that want to sell edible or smokable hemp products allowed under the law. The bill would also limit THC concentrations to 2 milligrams per package.   

House Speaker Todd Gilbert (R) told the Mercury that the proposed changes follow “feedback from parents whose children have experienced positive benefits from CBD products.” 

“…The substitute also includes a narrowly tailored exemption clarifying that the legislation will not outlaw those therapeutic products. Gov. Youngkin’s substitute takes into account these critically necessary products while going even further to clear store shelves of illegal products responsible for sending children to the hospital.” — Gilbert to the Mercury 

Youngkin’s proposal would also get rid of a provision in the original bill requiring that bittering agents are added to hemp-derived topical products that include CBD. The bill still requires those products to contain a warning label stating that they are “not intended for human consumption.” 

The General Assembly is expected to take up Youngkin’s proposed amendments to the measure next month.   

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Delaware Legislature Passes Cannabis Legalization Bills

3/29/2023

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The Delaware Senate on Tuesday approved bills to legalize cannabis use and possession by adults and create a system to license dispensaries, the Associated Press reports. The approval sets up a potential showdown with Democratic Gov. John Carney, who last summer vetoed a measure to legalize cannabis possession by adults.

“The governor continues to have strong concerns about the unintended consequences of legalizing marijuana for recreational use in our state, especially about the impacts on our young people and highway safety. He knows others have honest disagreements on this issue.” — Carney’s office in a statement

The possession bill passed 16-4, which would survive a Carney veto. Last session, the House was unable to override Carney’s veto, with a 20-20 vote. The bill to set up a cannabis marketplace in the state required a three-fifths majority to pass because it creates a new tax – it passed the Senate 15-5 on a party-line vote. The three-fifths threshold is also the requirement to override a governor’s veto.

If the regulation measure becomes law, the state could issue 30 initial retail licenses, 30 manufacturing licenses, 60 cultivation licenses, and five testing licenses. The bill includes special licenses for social equity and microbusiness applicants.

Residents would not be allowed to grow their own cannabis under either measure. They would be allowed to possess up to an ounce in public.

The Delaware House passed the bills earlier this month and they move next to Carney’s desk.

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Licensed Vermont Cultivator Fined $20K for Diverting Cannabis Out of State

3/29/2023

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A licensed Vermont cannabis cultivator was issued $20,000 in fines by state regulators after posting a video of himself on Instagram delivering cannabis to an unlicensed cannabis shop in New York City, VT Digger reports. The Cannabis Control Board (CCB) also initially suspended the license of Devon Deyhle, and his business Tall Truck, for 60 days but will not impose the ban if Deyhle abides by state regulations for the next two years.

“It was pretty much a publicity stunt about me potentially opening up the market in New York City for Tall Truck. I guess I pushed the limits a little bit. … You make your bed, you sleep in it. You pay for your mistakes.” — Deyhle to VT Digger

In the since-deleted video, taken last December, Deyhle gets out of a vehicle and enters a storefront in Manhattan which is not licensed in New York to sell cannabis and hands the person behind a counter a green and yellow box with “Tall Truck” imprinted on it, the report says. He tells the woman he has “a tasty little treat from Vermont that’s for you.”

The video was reported to the CCB who issued the fines and suspension. He was fined $10,000 for diverting cannabis from Vermont’s legal market and $10,000 for making false statements to the board when he allegedly told them at the time of his license approval that he would not be selling cannabis out of state.

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North Carolina Legalization Bill Includes Expungement, Home Grow

3/29/2023

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A bill proposed in North Carolina would legalize cannabis for adult use and expunge prior cannabis-related convictions, WSOC-TV reports. The measure includes a 20% excise tax on cannabis sales and allows municipalities to enact an additional 3% tax. 

Funds derived from cannabis sales would be split into new and existing programs, including: 25% to a Community Reinvestment and Repair Fund created by the bill; 10% to a Social Equity Fund created by the bill; 3% to a Cannabis Education and Technical Assistance Fund created by the bill; 7% to the Department of Health and Human Services (DHHS) for evidence-based, voluntary programs for substance abuse treatment or prevention; 2% to DHHS for a public education campaign for youth and adults about the health and safety risks of alcohol, tobacco, cannabis, and other substances; 2% to DHHS for cannabis research; and up to 1% to the Department of Public Safety for advanced impaired driving enforcement and drug recognition training. 

The remaining 50% of tax revenues would be directed to the state’s general fund.  

Under the measure, adults could possess up to 2 ounces of flower, 15 grams of concentrates, and cultivate six plants. The measure would also allow people on parole and probation to consume cannabis as long as it would not create a danger to them or another person.  

The bill is sponsored by seven Democratic senators who said in a statement that cannabis prohibition has been a “wasteful and destructive failure” that “has had an unfair, disparate impact on persons and communities of color” and “diverts law enforcement resources from violent and property crimes.” 

Earlier this month, the North Carolina Senate approved a medical cannabis bill for the second year in a row.

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Oregon Issues First Psilocybin Manufacturing License

3/28/2023

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Oregon regulators issued the state’s first business license under the state’s historic psilocybin therapy program last week, the Associated Press reports. The licensee, Satori Farms PDX LLC, received its license to begin manufacturing psilocybin products from Oregon Psilocybin Services — a branch of the Oregon Health Authority — last Wednesday.

Oregon’s medical psilocybin program formally launched this January after voters approved the system during the 2020 election.

Psilocybin, the psychedelic substance found in magic mushrooms, has shown promise in treating severe depression, post-traumatic stress disorder, end-of-life anxiety among the terminally ill, and some mental health conditions. While the substance remains outlawed at the federal level, the Food and Drug Administration (FDA) granted psilocybin mushrooms “breakthrough therapy” status for major depressive disorder in 2018, which has led to clinical trials.

Oregon Psilocybin Services has warned the program could be slow to come online, the report said, as regulators must first consider applications for four different types of licenses — manufacturing, laboratories, service centers, and facilitators.

Earlier this month also marked the culmination of the first-ever psilocybin training program by Portland-based InnerTrek, which teaches students how to accompany psilocybin patients during their psychedelic experiences, the report said.

Earlier this month, advocates launched the Psychedelic Medicine PAC, a new political action committee dedicated to supporting candidates for office who support the use of psychedelics for therapeutic purposes.

 

 

 

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Ben & Jerry’s Co-Founder Launches Nonprofit Cannabis Brand

3/28/2023

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Ben & Jerry’s Ice Cream co-founder Ben Cohen has launched a cannabis brand called Ben’s Best Blnz, or B3, and the company’s profits will be used for social benefit, according to a Fast Company report. The product line includes low-THC products including pre-rolls and vape options.  

B3 is a registered non-profit and 80% of the company’s profits will be administered in partnership with NuProject as grants to Black cannabis entrepreneurs. Another 10% will go to the Last Prisoner Project, and 10% will be donated to the Vermont Racial Justice Alliance. The company’s stated mission is “sell Great Pot and use the power of business to Right the Wrongs of the War on Drugs.”    

“Schedule 1 is the whole root of the war on drugs. Schedule 1 is supposed to be for drugs that have no medical value and have a high risk of addiction, which does not apply to pot, but it does apply to beer.” — Cohen to Fast Company 

The product packaging features quotes by abolitionist Angela Davis and the late former president of South Africa, Nelson Mandela. The brand’s packaging art was designed by Dana Robinson whose Ebony Reprinted series recontextualizes 1950s and 1960s ads from the magazine. Robinson created a new piece for the brand – recontextualizing an old suit ad from the magazine that was set in an ice cream parlor. 

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South Dakota Gov. Has Signed 8 Cannabis Related Bills This Session

3/28/2023

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South Dakota Gov. Kristi Noem (R) last week signed three cannabis-related bills into law, KELO reports. This session Noem has signed a total of eight cannabis-related bills that were approved by lawmakers, who rejected eight others.  

Last Thursday, Noem signed HB 1053 which bans women who are pregnant or breastfeeding from obtaining a medical cannabis certification; HB 1154 which creates new misdemeanor charges for medical cannabis practitioners who break a variety of new rules included in the bill; while SB 1 adds more qualifying conditions to the state’s medical cannabis program. 

Under HB 1154, medical cannabis practitioners would be charged with a misdemeanor for directing patients to specific dispensaries or caregivers in exchange for payment; advertising in a dispensary; issuing medical cannabis certifications while having a financial stake in a cannabis business; offering discounts, deals, or other financial incentives for making an appointment with them; conducting medical assessments in a place licensed to sell alcohol; and charging patients different rates based on the duration of their certification. 

SB 1 adds AIDS and HIV, ALS, multiple sclerosis, cancer or its treatment, if the treatment is associated with severe or chronic pain, nausea or severe vomiting, or cachexia or severe wasting syndrome, Crohn’s disease, epilepsy and seizures, and post-traumatic stress disorder to the state’s medical cannabis qualifying list. The measure also moved the responsibility of considering the addition or removal of medical conditions out of the purview of the Department of Health and placed it instead with the legislature. 

Noem this session has also signed HB 1132 which adjusts the duties of the Medical Marijuana Oversight Committee (MMOC), allowing the committee to make recommendations regarding the medical and clinical aspects of the medical cannabis program; HB 1150 which requires a practitioner to certify whether they have previously issued a patient certification for the use of medical cannabis and eliminates a patient’s fee to the state if they are re-applying for a card for the second time within the span of a year; SB 27 which amends the definition of a medical cannabis practitioner, and states that hemp derived THC must come either from industrial hemp, or be in a product approved by the federal Food and Drug Administration; SB 134 which revises the makeup of the MMOC; and SB 198 which allows medical cannabis dispensaries to maintain certain cardholder data. 

Noem also vetoed a measure that would have increased the allowable THC levels in unprocessed hemp from 0.3% to 5%.   

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Montana House Committee Approves Update to State’s Adult-Use Cannabis Framework

3/28/2023

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A Montana House committee on Friday approved a bill to update the state’s adult-use cannabis regulatory framework, the Independent Record reports. The legislation was the work of lawmakers from both parties that started in the 2021 session.    

The regulatory update bill passed by the House Business and Labor Committee would move the regulation of testing laboratories from the state Department of Public Health and Human Services (HHS) to the Department of Revenue. The change follows adult-use legalization in the state which moved the medical cannabis program from HHS to the revenue department, the report says.  

The legislation will also allow about 30 medical cannabis providers who have been stalled to enter the adult-use space. Following the passage of adult-use cannabis laws in 2020, Montana lawmakers put a moratorium on new business licenses until 2023 hoping to prevent multistate operators from taking over the market. The measure extends that moratorium until 2025 but would open licenses for some current operators.  

Under the state’s adult-use law, any company that applied for a cannabis license after the 2020 election could only be approved for a medical cannabis license – the proposal moves that cut-off to Dec. 31, 2021 which would allow several companies to apply for an adult-use license. 

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How New Jersey Is Cultivating Women Cannabis Entrepreneurs

3/28/2023

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Editor’s note: This editorial was contributed by Jessica F. Gonzalez, Esq., Consultant for the New Jersey Business Action Center’s Cannabis Training Academy.

According to the 2022 report, “Diversity, Equity & Inclusion in the Cannabis Industry,” women holding executive positions in the cannabis industry grew by only a percentage point over the past year, to 23.1%. The number is also below national averages for all businesses. The primary goal of the upcoming New Jersey Business Action Center (NJBAC) Cannabis Training Academy is to increase the number of diversely owned businesses.

Various factors have made it more difficult for women to break the “grass ceiling” in the cannabis industry. Gender bias in a traditionally white male, dominated industry makes access to funding for female entrepreneurs more difficult. According to the Harvard Business Review, companies founded solely by women receive less than 3% of all venture capital investments. In addition, regulatory hurdles are complex and constantly changing on both the state and municipal levels, making pivoting and adapting to changing circumstances imperative. Mentorship and networking opportunities are often lacking for women in the industry, though we have seen a significant uptick in women-centric conferences and events led by women-owned organizations. Add in broader barriers, such as social and cultural stigma and lack of education on the cannabis plant and legal policy, and success in the industry can be hard to achieve without proper support.

The NJBAC Cannabis Training Academy aims to help women and communities most harmed by cannabis prohibition arm themselves with tools to overcome these challenges.

My experience as a policy advocate, attorney, owner of a consulting firm and cannabis policy adjunct professor at the forefront of New Jersey’s campaign to legalize adult-use cannabis has given me insight into the challenges women, particularly women of color, face in the industry. My legal and advocacy experience, along with the resources of the New Jersey Cannabis Regulatory Commission, have been utilized to design this comprehensive technical and training program.

The Academy will walk applicants through everything they need to know to submit a complete cannabis application. The 10-week program allows applicants to learn independently. Designed as an asynchronous learning model, it accommodates different learning styles so students can learn in their own way and time. All educational content will also be available in Spanish which is something we rarely see in other technical assistance programs. Applicants will learn how to fill out complex applications, obtain municipal approvals, prepare a business plan, draft standard operating procedures, and understand how to work with other vendors and government agencies. Mentors will be available to answer specific questions and offer non-legal guidance and direction. All classes will be taught by highly vetted and trusted instructors who are in or have supported, taught or consulted about the cannabis industry.

The truth is that women in any industry have historically faced challenges. Thanks to NJBAC’s Cannabis Training Academy, a successful career in the cannabis industry is achievable, whether one wants to touch the plant or not.

Operating under the leadership of Executive Director Melanie Willoughby, the New Jersey Business Action Center, housed within the New Jersey Department of State, is the “one-stop-shop” for businesses to access a variety of resources and support. NJBAC offers no-cost, confidential assistance to help businesses grow. The team helps companies of all sizes save time and money by getting answers from government agencies, directing businesses to appropriate officials and contacts, and facilitating meetings and follow-ups from regulatory agencies.

For information on the NJBAC’s Cannabis Training Academy and how its services can help you start a career in the cannabis industry, please visit nj.gov/state/bac/cannabis or call 1-800-JERSEY-7.

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Pennsylvania Adult-Use Bill Would Put Retail Cannabis in Liquor Stores

3/27/2023

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A bill proposed in Pennsylvania would legalize cannabis for adults and sell cannabis products through the state’s liquor store system, Erie Now News reports. The measure would also expunge low-level cannabis convictions and allow individuals to grow up to six cannabis plants. 

State Sen. Dan Laughlin (R) told Erie New Now that while he supports broad cannabis legalization, he does not support the proposal to sell it through the liquor store system. 

“Honestly, I don’t think the state should be selling liquor in the first place, let alone adult-use cannabis. I know obviously there’s some proposals out there to do just that, but quite frankly, if we’re going to get a bill through the legislature and on the governor’s desk, it’s not going to include that.” — Laughlin to Erie News Now 

Democratic Gov. Josh Shapiro is including legalizing and taxing adult-use cannabis in the 2023-2024 executive budget. If approved, adult-use cannabis revenues in Pennsylvania could be worth $188 million by 2028.  

Former Gov. Tom Wolf (D) also included adult-use cannabis legalization in at least one of his budgets but the provisions were removed before the final passage of the budget law after pushback from lawmakers. During his two terms as governor, Wolf issued 627 pardons for cannabis-related crimes. 

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Idaho Bill to Legalize Medical Cannabis Introduced as Session Winds Down

3/27/2023

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A bill to legalize medical cannabis was introduced last Friday – late in the session and through means that would circumvent the committee process, East Idaho News reports. The measure was introduced as a personal bill by House Health and Welfare Committee Chairman John Vander Woude (R) but personal bills don’t typically advance.  

Personal bills are usually introduced at the beginning of the state’s session and used as groundwork for future policy discussions, the report says. The measure did not appear on any legislative agendas on Friday. 

Under the Idaho Medical Cannabis Act, patients with a qualifying medical condition such as cancer, AIDS, amyotrophic lateral sclerosis (ALS), wasting syndrome, epilepsy, debilitating seizures, Crohn’s Disease, or a terminal illness would be eligible to register for the program. The bill would allow for only cannabis pills, tinctures, tablets, or chewables containing up to 10 milligrams of THC, which would be obtained only from a licensed Idaho pharmacist. The bill would not allow for cannabis flower or smokable or vapable products. 

The state would license cannabis cultivators but there would be no dispensary system. 

The last time Idaho lawmakers considered medical cannabis legislation was in 2012. That measure was not approved by either legislative chamber.   

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Study: 37% of Australian Medical Cannabis Users Have Prescription

3/27/2023

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A recent study by the University of Sydney’s Lambert Initiative found 37% of respondents who use cannabis medically received a legal prescription under Australian law. In 2018, that figure was just 2.5%.

The researchers found that those who only used prescription cannabis tended to be older, female, and less likely to be employed.

Professor Nicholas Lintzeris, the lead researcher for the third Cannabis as Medicine Survey from the Faculty of Medicine and Health at the University of Sydney, said the data suggests “a transition from illicit to legal use of medical cannabis.”

“A number of benefits were identified in moving to prescribed products, particularly where consumers reported safer ways of using medical cannabis. People using illicit cannabis were more likely to smoke their cannabis, compared to people using prescribed products who were more likely to use oral products or vaporized cannabis, highlighting a health benefit of using prescribed products.” — Lintzeris in a press release

The study found 95% of respondents reported improvement in their health after using cannabis medically. The research found the most common reason for medical cannabis use – either legally or illegally – was pain. Fifty-two percent of survey respondents who used cannabis legally used it for pain, along with 40% of those who use it medically but without state approval. Another 26% of patients who were registered with the state used cannabis for mental health reasons, along with 37% of those not registered. Six percent of patients used cannabis for sleep, along with 11% of non-registered consumers.

In all, the majority of respondents – 24% of registered patients and 3% of unlawful consumers – said that accessing medical cannabis in Australia is “straightforward” or “easy.” The average legal cannabis patient spent AU$79.20 per week on cannabis, compared to AU$58.60 for non-registered patients. Individuals who said they used cannabis for both medical and recreational purposes said they spent AU$114.00 weekly.

The survey, which is conducted every two years, was published in the Harm Reduction journal.

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New York Gov. Proposes Crackdown on Unlawful Cannabis Shops

3/24/2023

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New York Gov. Kathy Hochul (D) is proposing legislation to crack down on unlicensed cannabis storefronts in the state, including fines of up to $10,000 per day for unlawful operations. The legislation would also give additional enforcement power to the Office of Cannabis Management (OCM) and the Department of Taxation and Finance to enforce the new regulatory requirements and close stores engaged in cannabis sales without a license. 

“The continued existence of illegal dispensaries is unacceptable, and we need additional enforcement tools to protect New Yorkers from dangerous products and support our equity initiatives. I am proud of our continued progress creating the entirely new legal cannabis industry and helping legal dispensaries open their doors to offer safer cannabis products to New Yorkers.” — Hochul in a press release 

The new legislation, which is being introduced as a governor’s program bill in the Senate and Assembly, amends the state’s tax law and adult-use cannabis law to enable the OCM, the Taxation and Finance Department, and local law enforcement to enforce restrictions on unlicensed storefront dispensaries. The legislation does not impose any new penalties related to cannabis possession by an individual for personal use and does not allow local law enforcement to perform enforcement actions against individuals. 

In addition to the $10,000 per day fines, the legislation would allow fines of up to $200,000 for unlawful cannabis cultivation. 

In a statement, OCM Executive Director Chris Alexander entrepreneurs seeking to participate in the state’s legal cannabis industry “are being economically harmed by bad actors filling their storefronts with products that are questionable, unregulated and potentially dangerous.” 

The legislation would restructure current illicit cannabis penalties to give taxation department peace officers enforcement authority, create a manageable, credible, fair enforcement system, and would impose new penalties for retailers that evade state cannabis taxes, the governor’s office said. The proposal would also clarify and expand OCM’s authority to seize illicit product, establish summary procedures for OCM and other governmental entities to shut down unlicensed businesses, and create a framework for more effective cross-agency enforcement effort. 

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