Michigan Businessman Pleads Guilty to Bribing Former Medical Cannabis Agency Head

4/25/2023

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A Michigan businessman last week pleaded guilty to paying bribes to the former head of the state’s Medical Marihuana Licensing Board, the Detroit News reports. John Dawood Dalaly admitted to a federal judge that he hired Rick Johnson’s wife, Jan Johnson, as a consultant for $4,000 a month and she helped him fill out forms that would end up in front of the board that her husband chaired.

Dalaly also admitted to providing at least $68,200 in cash and other benefits to Johnson, including two private flights to Canada.

Dalaly is the second person to plead guilty in the scheme and he now faces up to a decade in federal prison. Earlier this month, Johnson pleaded guilty to accepting $110,000 in bribes in exchange for industry licenses. Johnson served as head of the board for two years and served as state House speaker from 2001-2004 when Republicans controlled the chamber.

According to the plea agreement outlined by the News, Dalaly had the understanding that the expenditures benefiting Johnson “were offered and given to influence or reward Johnson.”

Earlier this month, Dalaly, Johnson, Brian Pierce, and Vincent Brown all signed plea deals admitting the charges.

Under the plea agreement, Johnson agreed to forfeit the $110,000 in bribes and the U.S. Attorney’s Office agreed not to oppose his request for a reduction in offense level, which would impact his sentencing.

Dalaly is expected to be sentenced on September 14.

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James Yi: Compliant Wholesale Solutions for the Cannabis Industry

4/25/2023

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Between the rush of a retail business model and the pressure to maintain compliance in a hyper-regulated space, cannabis operators have a lot on their plate. But as the industry matures, so have the ancillary services and business solutions that enable cannabis entrepreneurs to find success.

In this written Q&A, we ask James Yi — the founder and CEO of cannabis wholesale platform Leaf Trade — about his career before coming to the cannabis space, Leaf Trade’s efforts to maintain up-to-date compliance services, the value of customer feedback, and more.

Scroll down to find the full interview:

Ganjapreneur: What was your career path before joining Leaf Trade in its earliest stage?

James Yi: Over 10 years ago I started a tech company, NextME, which provides B2B software services to multiple industries. In 2015, Illinois launched its recreational market and I happened to get involved with a couple of cannabis groups. I helped launch new dispensary locations and manage operations. Through my work with these dispensaries, I noticed one of the biggest problems they were experiencing was the way in which retailers were buying from wholesalers. It was just an extremely inefficient process where they were spending 50% of their time just managing orders. I knew there had to be a better way and the problem could be solved with technology. Thus Leaf Trade was developed to bridge those gaps and pain points that have been rampant in the cannabis industry.

In working with companies from every corner of the cannabis industry, how does Leaf Trade juggle the different priorities of cultivators, manufacturers, and retailers?

This is really where Leaf Trade thrives, because we have the industry experience to recognize there are so many different peculiarities and nuances in the industry at large. Depending on your business type — a retail dispensary, cultivator, brand, etc. — and what particular state you are operating in, we recognize there are workflows and integrations we need to accommodate to help these businesses meet compliance standards and operate more efficiently. That’s how we got started: by listening to our clients. We help them create a balance between their custom workflow needs and leveraging our tech and industry expertise to create a platform experience that incorporates best practices, and is highly configurable to meet all of our client’s needs, no matter what side of the cannabis industry they are operating in.

How does Leaf Trade stay up-to-date on the shifting regulations of each state market?

Leaf Trade has been servicing the industry since the genesis of Illinois’ highly-regulated market starting in 2015. We’ve seen the evolution of how these states mature, and we’ve learned how to grow with them; with every new highly-regulated state launching, we’ve seen similar evolutions. Obviously, we stay on top of the nuanced regulations in each state. However, the way in which these states mature and grow follows patterns that are more or less known quantities to us by now. The states learn from one another and they see what does and doesn’t work, and they adapt. When there’s a new state coming into the legal cannabis market, regulators are doing things based on a precedent that we’ve experienced, so these shifting regulations and markets aren’t a complete mystery to us.

How has customer feedback influenced your business model?

At Leaf Trade, we actually listen. We’re prescriptive in helping guide our clients because we have experience working with a variety of businesses of different sizes with complex needs across the country. While we lean into our consultative role, we balance it with listening to each of our client’s specific needs. Particularly since the vast majority of our clients are enterprise-level businesses, including the top 20 MSOs, the reality is our tech has to be able to meet the needs of enterprise operations. It has to be flexible and adaptable, which includes building custom integrations for our clients that are very important to helping them operate most efficiently.

What advantages does Leaf Trade offer to cannabis companies looking to source private-label products?

Leaf Trade’s focus is not only on enterprise-level businesses but also on the top brands in each market. We make it easy for cannabis dispensaries and retailers using our platform to access the best brands to stock on their shelves. Our platform’s operational efficiencies truly work for cultivators and retailers alike. We integrate with compliance systems and the seller’s ERP and accounting software, so when purchases occur on our platform, they are actually processed as opposed to being just a glorified menu. We make it easier for cultivators to list as many brands as they’d like through one branded storefront, and they can add branding and product images to the page to really customize it to their brand image.

What are you most excited about for the future of Leaf Trade and the cannabis industry?

Coming off the heels of the merger between Leaf Trade and Sweed, I feel most excited about being able to provide even more value to our clients, who are often vertically integrated companies and multi-location dispensary groups. We look forward to providing the same operational efficiencies we’ve provided on the wholesale side to the dispensary side of their business. Through Sweed, these companies will be able to consolidate their retail tech stack. Sweed gives dispensaries access to a proprietary data engine delivering groundbreaking operational solutions that transform their cross-channel eCommerce, marketing and loyalty programs into truly data-driven solutions. Technology like this was previously only available to businesses with software development resources at scale, but with Sweed it will be available for all cannabis businesses at a fraction of the cost.

What would you say has been the biggest obstacle you’ve faced — or the greatest achievement reached — in your years of cannabis industry experience?

The biggest obstacle Leaf Trade has faced, which I’d also say has been our biggest gift, is having to navigate such a complex and nuanced industry. It wasn’t easy but once we were able to specialize in building the right tech to fill a gap that the highly-regulated cannabis markets were seeking, we’ve established ourselves as a household name in the industry. I’m proud to say we’ve maintained our near-zero churn since we launched in 2017. Above all, our greatest achievement has been anchoring our focus on people and product, and when it comes to those two priorities we’re always aiming to grow and set the bar higher.

Thanks again, James, for answering our questions! Our readers can visit the Leaf Trade website at Leaf.Trade to learn more.

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Lawsuit Alleges Arkansas Cannabis Lab Is Inflating THC Potency for Some Growers

4/25/2023

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An Arkansas lawsuit filed in federal court alleges that the state’s cannabis testing laboratories are inflating THC levels in medical cannabis products as part of a scheme to inflate prices, KARK reports. The lawsuit was filed in February on behalf of Jakie Hanan, a medical cannabis patient in the state. A similar lawsuit that alleged violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act was dismissed that month.  

The new lawsuit does not claim any RICO violations but argues THC inflation violates the federal Deceptive Trade Practices Act. 

The lawsuit names Steep Hill as a testing lab that is inflating numbers and that medical cannabis providers prefer laboratories that gives their product higher potency numbers so they can charge a higher price, the lawsuit alleges. Medical cannabis growers Osage Creek Cultivation LLC, Bold Team LLC, and NSMC-OPCO LLC, which does business as Natural State Medicinal, are also named in the lawsuit. 

The lawsuit contends that products with inflated and inconsistent potency are “unable to reliably provide Plaintiff [Hanan] the relief he expected” and that Hanan had cannabis he purchased tested at a second lab which revealed the THC difference. 

The lawsuit asks for a jury trial, while attorneys have moved that the case is dismissed.  

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Study: Cannabis Businesses Are Leasing More Properties than Purchasing

4/25/2023

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According to a National Association of Realtors (NAR) study, the share of its members purchasing real estate for cannabis operations compared to those leasing properties fell from 29% to 18% since 2021. Commercial real estate practitioners are also seeing increased demand for warehouses, land, and storefronts for cannabis operations.  

The study, Marijuana and Real Estate: A Budding Issue, found 45% of commercial landlords in states where cannabis has been legal the longest are willing to take cash for rent, up from 42% in 2021.

In a statement, Jessica Lautz, NAR deputy chief economist and vice president of research, said that “As more states adopt cannabis laws, realtors are at the forefront of commercial real estate activity and are working with clients to find land, warehouses and storefronts for this growing business.”

In states where only medical cannabis use is legal, 23% had seen an increased demand in storefronts, 14% in warehouses and 7% in land. In states where both medical and adult cannabis use is legal, 25% to 29% of members had seen an increased demand in warehouses, 18% in storefronts and 13% to 15% in land, the study found.

The study also found that fewer realtors are seeing lease addendums that prohibit growing cannabis on properties; 27% of realtors in states that allow both medical and adult cannabis prior to 2018 have seen addendums added to leases that restrict growing on properties, down from 44% in 2021. Addendums related to smoking are also on the decline in legal states.

In states where adult-use cannabis has been legal for more than five years, 65% of residential property managers have seen addendums added to leases restricting smoking on properties, down from 76% two years ago. For states that legalized within the past five years, 56% saw smoking addendums, down from 59% in 2021, the report says. In contrast, states that only allow medical cannabis use saw an increase in addendums added to leases that restrict smoking on properties, jumping from 40% to 62% in the past two years.

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CannaCon New Mexico to Bring Together Top Players in the Cannabis Industry

4/24/2023

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Albuquerque, New Mexico — CannaCon, the leading B2B cannabis conference and expo, is coming to New Mexico for the first time on May 19th and 20th, 2023. The event will take place at the Albuquerque Convention Center and is expected to draw industry leaders, entrepreneurs, investors, and other stakeholders from around the world.

CannaCon New Mexico will feature keynote speakers, panel discussions, and networking opportunities for those involved in all aspects of the cannabis industry. Attendees can expect to learn about the latest innovations, trends, and best practices in cannabis cultivation, processing, manufacturing, marketing, and distribution.

“CannaCon is excited to bring its premier cannabis business event to New Mexico,” said Angela Grelle, CMO of CannaCon. “We are committed to providing a platform for the industry’s top players to connect, learn, and grow together. We look forward to seeing the positive impact that this event will have on the cannabis community in New Mexico and beyond.”

New Mexico legalized recreational cannabis in April 2021, becoming the 16th state to do so. The industry is expected to generate significant revenue and job opportunities in the state in the coming years.

Tickets for CannaCon New Mexico are on sale now at cannacon.org. For more information about the event, including sponsorship and exhibitor opportunities, please contact Angela Grelle angela@cannacon.org.

About CannaCon
CannaCon is the leading B2B cannabis conference and expo, dedicated to providing a global marketplace for education, innovative products, and businesses serving the cannabis industry. Founded in 2014, CannaCon has hosted events in Seattle, Detroit, New York, Oklahoma, and more. For more information, please visit cannacon.org.

 

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Adult-Use Cannabis Legalized in Delaware

4/24/2023

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Adult cannabis use is now legal in Delaware after Gov. John Carney (D) allowed the legislature-approved bills to become law without his signature on Sunday. In a statement, Carney said the bills “remove all state-level civil and criminal penalties from simple marijuana possession and create a highly regulated industry” but said the reforms are “not a step forward.”  

“I support both medical marijuana and Delaware’s decriminalization law because no one should go to jail for possessing a personal use quantity of marijuana. And today, they do not. I want to be clear that my views on this issue have not changed. And I understand there are those who share my views who will be disappointed in my decision not to veto this legislation. I came to this decision because I believe we’ve spent far too much time focused on this issue, when Delawareans face more serious and pressing concerns every day. It’s time to move on.” — Carney in a press release 

Carney added that he remains “concerned” about adult-use legalization and that the industry “will have a disproportionately negative impact” on children, roadway safety, and on the state’s poorest neighborhoods.”   

Under the law, a 15% tax will be applied to adult-use cannabis sales and the state will license up to 30 dispensaries, 30 manufacturers, 60 cultivators, and five testing labs. Sales are not expected to commence in the state until August 2024. The bills do not include home grow provisions.  

“As we implement House Bill 1 and House Bill 2, we will do everything in our power to protect children from accessing marijuana and marijuana-related products; prevent Delawareans and Delaware visitors from driving under the influence of marijuana; and closely evaluate the placement of marijuana dispensaries and other businesses, to ensure they do not become a blight on already disadvantaged communities,” Carney said in a statement. “My goal will be to ensure that Delaware has a robust regulatory system that protects the interests of the most vulnerable Delawareans, to avoid the many challenges we’ve seen in other states, and to get back to focusing on issues that are most important for Delaware families.” 

State Rep. Ed Osienski (D), the chief sponsor of the legalization bills, said in a statement that he understands the governor’s “personal opposition to legalization” but appreciates “him listening to the thousands of residents who support this effort and allowing it to become law.” 

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Federal Bill Would End Prohibition of Firearm Sales to Cannabis Consumers

4/24/2023

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U.S. Rep Brian Mast (R-FL) last week introduced a bill to end the prohibition of firearm sales to cannabis consumers in states that allow adult- and medical-use cannabis. Currently, federal law restricts the sale of guns or ammunition to anyone who is an “unlawful user of or addicted to any controlled substance,” which includes cannabis. The Gun Rights and Marijuana (GRAM) Act creates a carve-out for cannabis for individuals who live in states or on tribal lands where cannabis use is legal.

“No one should be forced to choose between their rights: you have a right to bear arms, and in many states, you have a right to use cannabis. Congress needs to legislate based on reality, and the reality is that those who legally use marijuana are being treated as second-class citizens.  That’s not acceptable. Government exists to protect the rights of the people, and that’s what this bill does.”— Mast in a press release 

Mast said the issue is “of particular importance to the veteran community.”  

“No veteran that I know wants to be forced to choose between a viable treatment option for conditions like PTSD, and the ability to protect themselves and their families,” he said in a statement. “The GRAM Act is about ensuring no one has to make that choice.” 

Earlier this month, a federal judge in the U.S. District Court for the Western District of Texas ruled that the federal ban on cannabis consumers possessing firearms to be unconstitutional. In February, a federal judge in Oklahoma ruled that the federal ban on gun ownership for citizens who consume cannabis violated the Second Amendment of the U.S. Constitution. That case is currently in the appeals process.

The GRAM Act carries no co-sponsors in the House and no companion measure in the Senate. It is currently in the House Judiciary Committee.

 

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Oklahoma Gov. Signs Bill Requiring $50K Bond for Cannabis Cultivators

4/24/2023

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Oklahoma Gov. Kevin Stitt (R) last week signed a measure requiring all state-approved cannabis growers to hold a $50,000 bond, which lawmakers hope will combat the illegal grows in the state, FOX 23 News reports. The law requires the bond to be paid upfront before the new operations can begin and can be recalled to fund any remediation of the site if it is abandoned or if the license is revoked.  

In a statement, Attorney General Gentner Drummond applauded the bill’s passage and the governor’s approval. He described the legislation as “an important tool to recover after eliminating one of these criminal enterprises.”  

“This measure requires bonding for commercial marijuana grow operations in Oklahoma, meaning that the State will have the resources necessary for environmental cleanup after an illegal marijuana farm is busted and shut down.” — Drummond, in a statement, via FOX 23  

Oklahoma has one of the country’s most permissive medical cannabis programs and state law enforcement officials have been cracking down on illegal operators while lawmakers have been passing bills to reign in unlawful operations. The Senate last month passed a bill that would allow the director of the state Medical Marijuana Authority to shut down cannabis operations that are damaging the environment. 

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Cookies CEO Berner Responds to Recent Lawsuits

4/21/2023

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Rapper and cannabis entrepreneur Berner, the CEO of Cookies, issued an Instagram video response on Wednesday to lawsuits filed against him and several other Cookies executives, employees, and associates.

One such lawsuit, first covered by Alex Halperin for WeedWeek, was filed by Cookies investors BR Co. and NedCo in February; the suit claims that Berner and other defendants engaged in “pervasive self-dealing” leading to “millions of dollars in personal benefits and kickbacks,” among other allegations.

In the Instagram video, Berner — legal name Gilbert Milam — discussed the legal battle publicly for the first time, suggesting the plaintiffs are “predatory investors” who “saw a good opportunity to make a move on me and the leadership over at Cookies,” and who “made extremely false, harmful damaging claims about me [that are] completely not true.”

Berner also likened the lawsuits to a “loan-to-own” plot and thanked the brand’s fans and investors who still support him. “I’m looking forward to the day in court that we can prove that these claims are false,” he said. “They’re fucking bullshit.”

The lawsuit cites another California lawsuit against Cookies by Florida-based Cookies Retail Products (CRP), which claims to have an exclusive license agreement for national delta-8 THC product sales under the Cookies brand. That suit, filed in January for $38 million, accuses Cookies executives of pushing CRP to “use only suppliers that were affiliates of defendants…so that defendants could take kickbacks,” according to the report.

The BR Co. and NedCo lawsuit further alleges:

  • Defendants have used Cookies resources to promote personal interests.
  • Defendants insisted Cookies and its licensors use a specific construction company despite costing “more than double” because the company was owned by an executive’s brother.
  • And defendants have attempted to negotiate with third parties by having employees tell them “that they needed to pay [defendants] kickbacks or give them other personal benefits in order to do business with Cookies…These tactics were used to steal cannabis strains and other intellectual property from third parties,” according to the report.

Ultimately, the plaintiffs demand that Berner and two other directors be removed from the company’s four-person board, and the lawsuit calls for an “order imposing a constructive trust on all funds or gains that defendants have and/or will otherwise unjustly obtain at the expense of Cookies.”

Update (5/1/23): Florida-based CRP said in an April 28 press release that it has “voluntarily dismissed all suits and claims, and expresses a sincere regret for any misunderstandings CRP’s allegations may have caused.”

“CRP is unaware of any unethical behavior by Berner, Berling, or Cookies’ Management,” the release says. “In fact, as a matter of record, CRP has never implicated or named Berner in any action nor made any claim that he has ever conducted himself in any manner other than professional, kind, and a leader in the space.”

Paul Rock, CEO of CRP, further clarified in a statement: “Certain third parties influenced us to file suit based upon allegations that we learned were not true, so we took immediate steps to rectify the mistake by dismissing the suit.”

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Small Majority of Americans Believe Open Cannabis Consumption is Socially Acceptable

4/21/2023

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A small majority of Americans believe consuming cannabis openly is socially acceptable, according to a CBS News/YouGov poll. The survey found 53% of respondents have no problems with open, social, cannabis use, with 47% opposed.

The poll found 64% backed adult-use cannabis legalization with 36% opposed. Those backing the reforms included 73% of Democrats, 53% of Republicans, and 66% of independents; while 27% of Democrats opposed adult-use legalization along with 47% of Republicans and 34% of independents.

In the poll, 67% of respondents said their opinions of family members and friends would not change if they were to use cannabis, while 26% would “think worse” of them and 7% would “think better” of them. More than half of respondents (54%) said most of their family and friends’ opinions of them would not change were they to consume cannabis openly, while 38% said those close to them would think worse of them and 8% said they would think better of them.

The poll found 11% of respondents said “most” of their family and friends use cannabis, while 32% said some do, some don’t. Another 28% said very few of their family and friends consume cannabis and 29% said none of their family and friends use it.

Forty-four percent of those polled who consume cannabis said most people know about their use, while 34% said some do, some don’t, and 22% said very few or no one knew they consumed cannabis.

Poll respondents were split about whether they wanted a cannabis business in their neighborhood, with 31% favoring a cannabis business in their neighborhood, with 37% opposed, and 32% saying it wouldn’t matter. Among those who favored a cannabusiness in their neighborhood, 85% said it would be easier to regulate, 83% said it was already widespread, 81% said it would boost the local economy, 77% said it would lead to more tax revenues, and 54% said they would personally use the dispensary.

Among those opposed to cannabusinesses in their neighborhood, 87% said it would lead to more cannabis use among minors, 83% said it would make their neighborhood less desirable, 82% said it would lead to an increase in crime, 80% said cannabis is harmful to health, and 72% cited the fact that cannabis is federally outlawed. In all, 28% of respondents already had a cannabis business in their neighborhood, 25% didn’t know whether there was a cannabusiness in their neighborhood, while 46% did not have any cannabis operations around them.

The poll included 1,582 U.S. adult residents.

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Study: Worms Can Get the Munchies

4/21/2023

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A study published Thursday found that nematode worms under the influence of cannabis preferred high-calorie foods – behavior similar to humans when they get the munchies after consuming cannabis, according to a Washington Post report.   

Shawn Lockery, a University of Oregon Institute of Neuroscience professor, and one of the study’s authors, told the Post the study “helps us place ourselves in the universe of animals in a new way by reinforcing the commonality between humans, with this massive and marvelous brain, and a tiny little microscopic worm.”

“This is the first time that the munchies has been demonstrated in an invertebrate organism. So this is a big step from what we currently believe to be the sort of limit of the munchies.” — Lockery to the Post 

For the study, researchers poured a cannabinoid called anandamide onto about 50 of the nematode worms, which were then transferred to a T-shaped maze. The researchers placed high-calorie food on one side and low-calorie food on the other. 

While the worms usually prefer calorie-dense foods, they ate them at a higher quantity after being exposed to the cannabinoid, and they avoided low-calorie foods more than usual. In follow-up experiments, researchers found that anandamide sparks neurons to become more sensitive to the odors of high-calorie foods. 

Lockery added that the study was scheduled to publish last month but Current Biology delayed it until 4/20 – the unofficial holiday celebrating cannabis.  

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Report: Hemp Production in West Virginia Nosedives 

4/21/2023

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Cultivation of industrial hemp in the open in West Virginia fell nearly 50% from 2021 to 2022, according to U.S. Department of Agriculture (USDA) data outlined by WBOY. In all, there were 65 acres of hemp planted in the open in the state in 2021; in 2022, that fell to 35 acres.  

The total area of hemp harvested in the state for all purposes also fell from 43 acres in 2021 to 30 acres in 2022, the report says. Hemp grown indoors or otherwise protected by a structure in West Virginia also saw a hit in yearly production, with total growing area falling from 21,371 square feet to 5,967 square feet from 2021 to 2022. 

The production of industrial floral hemp produced nationally also fell from an estimated 18,000 pounds in 2021 to an estimated 6,000 pounds last year – a 66% decrease, according to USDA data. The fall in production led to less crop yield, reduced price per pound, median yield, and total value, the report says. 

Nationwide, the USDA reports that the total open planting area for industrial hemp fell 50% while the value of hemp production fell 70%. The USDA did not offer an explanation for the dramatic decreases.

 

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Report: Colorado Cannabis Sales on the Decline

4/20/2023

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Combined adult use and medical cannabis sales in Colorado were $124 million in February, a decline of 14.2% from the same month in 2022, according to state Department of Revenue data outlined by KDVR. In all, adult-use cannabis sales in Colorado have declined 12.7% year-over-year, while medical cannabis sales have fallen 23.7% year-over-year, according to state data.

Cannabis sales tax collections in the state were down 19% last month compared to March 2023, according to the revenue department. The state also saw the loss of 10,481 cannabis jobs last year, according to the Vangst 2023 Jobs Report outlined by KDVR.

Tiffany Goldman, board chair of the Marijuana Industry Group, told KDVR that the organization is “already seeing business owners close their doors and leave Colorado, taking critical jobs and tax revenue with them.”

“Our industry supports thousands of jobs and public programs that Coloradans care about like affordable housing, public safety, mental health and addiction treatment, education and more. Unfortunately, cannabis small business owners will not be able to withstand continued increases in taxes and regulations, dated and draconian federal regulations, and a growing unchecked and unregulated intoxicating hemp industry for much longer.” — Goldman to KDVR 

Colorado was among the first states to legalize cannabis for non-medical purposes, joining Washington state in 2012 via ballot initiatives.  

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Poll: South Dakota Voters Split on Cannabis Legalization

4/20/2023

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A new poll released Monday by the School of American and Global Studies at South Dakota State University suggests that South Dakota voters are open to legalizing cannabis for adult use despite rejecting the reforms last year.  

In 2020, voters had approved the reforms 54%-46% but the measure was voided on procedural grounds by the state Supreme Court. Two years later, a similar measure was rejected by voters 53%-47%. 

The poll found 30% of respondents “strongly” supported the reforms while 19% “somewhat” backed adult-use legalization – 49% total. Another 30% “strongly” opposed the reforms, with 11% “somewhat” opposed – 41% total – while just 10% had no opinion. 

“While South Dakota does trail behind other states in the level of support for legalization, it is following the national trend. We quite literally would not be having the same conversation 20 years ago because of the staunch opposition. Should this issue appear yet again on the ballot, its passage is very much within the realm of possibility.” — David Wiltse PhD and Filip Viskupič PhD, ‘The Political Fight Over Recreational Marijuana is Far from Over’ 

The majority – 52% – of Republicans polled were strongly opposed, while 11% were somewhat opposed. Just 11% of Republicans strongly supported adult-use legalization, with 12% somewhat in support and 13% had no opinion. Among Democrats, 42% were strong supporters, while 28% somewhat backed adult-use cannabis legalization. Just 1 in 10 Democrats remained strongly opposed, 12% somewhat opposed and 8% with no opinion.     

The poll included 747 registered South Dakota voters.  

Late last year, South Dakotans for Better Marijuana Laws, the group behind both previous ballot initiatives, indicated they may try for a third time to put the issue to voters in 2024.  

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Ohio Pharmacy Board Would No Longer Regulate Medical Cannabis Dispensaries Under Gov.’s Proposed Budget

4/20/2023

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Under Gov. Mike DeWine’s executive budget, the Ohio Board of Pharmacy would no longer have responsibilities regulating the state’s medical cannabis dispensaries, Cleveland.com reports. The governor’s plan would transfer some of the pharmacy board’s responsibilities to the Department of Commerce, but the pharmacy board would still be responsible for reviewing and adding qualifying conditions to the medical cannabis program.  

Currently, there are three agencies that regulate the Ohio medical cannabis program: the commerce department, pharmacy board, and State Medical Board. 

Dan Tierney, DeWine’s spokesman, told Cleveland that the “proposal is a consolidation for efficiency, as a significant portion of staff support and expertise in this field is at the Department of Commerce currently.” 

The Board of Pharmacy has been responsible for licensing and regulating dispensaries in the state since lawmakers approved the state’s medical cannabis law in 2016. Under the law, the Department of Commerce is responsible for the licensing and regulation of medical cannabis cultivators, processors, and testing labs.  

Matt Close, executive director of the Ohio Medical Cannabis Industry Association, told Cleveland.com that the organization “are all for the transfer.”  

“It’s a pretty convoluted scheme that we have to deal with right now. We’re not looking for less regulation. We’re looking for streamlined regulation that makes sense.” — Close to Cleveland.com 

The governor’s budget requires approval by state lawmakers and State Rep. Jay Edwards (R), Ohio House Finance Committee chair, said he expects DeWine’s request to be in the budget that his committee passes. He added that he met with a top official from the Board of Pharmacy, who did not object to the change.  

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My 4/20 Behind Bars

4/20/2023

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Editor’s note: This editorial was contributed by Edwin Rubis, who is currently more than two decades into a 40-year prison sentence handed down for a nonviolent cannabis crime. His release date is 2033.

April 20 is making its rounds again this year. But it isn’t a celebration for me. Far from it. I will again spend it locked in a ten-by-twelve prison cell, going through the motions of another long and tedious day, feeling the deprivation of my freedom … the insatiable longing for my mother, father, sons, and the rest of my family.

The 24 years I’ve already served feel exhausting, burdensome, and claustrophobic. The resulting effects of committing a non-violent marijuana crime. Unjust, harsh, and wrongful. But not in the eyes of the politicians and judges who have the power to set me free. Not in the eyes of the people who have forgotten about me.

I detest sounding like a victim. The circumstances compel me.

The year was 1998 when I was hauled away to serve my time in the belly of the beast. I was struggling with a monkey on my back, yes. I was trying to make an extra buck, more than surely. But did it make sense to rip me away from my family (for decades on end) for selling cannabis to the highest bidder? Particularly when no guns, drugs, or money were found on me? “Hearsay testimony is all we need,” the prosecutor in charge opposingly said.

The inappropriateness of my arrest and conviction, and the severity of my 40-year sentence should call into question the execution of the drug laws in our country. But then again, who the heck am I to question those who legislate the law? In 2023, I’ve been incarcerated for 25 years for a non-violent cannabis crime and shall remain so for the next 10 years.

I shall try to keep on surviving in the land of the living dead, where there’s no 4/20 celebration, no profit margin to gain; just lonely prison days coupled with iron-fisted rules to subdue your self-will, to limit your life choices such as what to eat, what to say, what to read, who to call, and even when to pray; where the hostile, unfriendly, negative environment can utterly demoralize you, wear you down. And if you happen to throw the typical prison privileges into the equation for formality’s sake — the few hours of prison visits on the weekend, the 15-minute phone calls from a 500-minute monthly allowance, the basic channels on television, the limited, over-priced commissary snacks and processed food, the bare minimum assistance of health care, the leather and wood shop hobby participation, and the old acoustic guitars for the music program — then you have a picture of humanness … but if you carve under the surface, you’ll soon discover the corroding waves of carceral oppression, the restlessness, the human uneasiness, the insufferable woe, which compels anyone, well, let me say, everyone, to question their purpose for living.

How the heck do you survive such a place? I honestly don’t know. Only by God’s grace, I’ve been able to maneuver along the path of great resistance, filled with unexpected inmate drama and uncalled-for violence on the most inopportune occasions. Only by God’s grace, I’ve been able to overcome the gargantuan trauma and mental anguish I’ve suffered over the past several decades behind bars, to find the strength to accomplish over thirty education and rehabilitation programs, which include three college degrees. But what does this mean in the eyes of the decision-makers who have the power to grant me reprieve?

Nada.

My non-violent cannabis crime as it stands today resembles a crime for felony murder. Because the average time a convicted felon serves in federal prison for murder is 23 and a half years and, by this time, I’m way past due.

The only hope I can now cling to is for my fellow cannabis advocates, my unknown friends, to empathize with my heartless, cruel, and unjust situation, with my life (if it has any value … if it has any worth), and extend a lifeline to my family’s fundraiser, to help them set me free.

Without such help, the years will keep mounting up season after season, my life rusting away, little by little, without the consoling love of those who care about me, those I love. I’m reminded of the bitter emotions I felt the day I was taken away. The gavel struck and passed judgment: 40 years. My mother screamed and my wife cried. Tears rolled down my eyes. Saltiness touched my lips. My heart in pain, burning emotions choking my breath. Then led away by force, without a say so, without consent, to face the years I’ve already served … and the 10 I have left.

Edwin Rubis is a cannabis prisoner serving a 40-year sentence in federal prison working towards his Ph.D. in Christian Therapy. His release date is 2033.

You can help Edwin: https://fundrazr.com/829bk6?ref=ab_7CEpSd

You can send him a personal text message: (256) 695-0223

To learn more about ways to get involved, please visit www.lastprisonerproject.org.

ABOUT LAST PRISONER PROJECT
The Last Prisoner Project (LPP) is a national, nonpartisan nonprofit dedicated to cannabis criminal justice reform with the goal of releasing every last cannabis prisoner and helping them rebuild their lives. As the United States moves away from the criminalization of cannabis, giving rise to a major new industry, there remains the fundamental injustice inflicted upon those who have suffered under America’s unjust policy of cannabis prohibition. We work to redress these harms through legal intervention, direct constituent support, advocacy campaigns, and policy change. Visit www.lastprisonerproject.org or text FREEDOM to 24365 to learn more.

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Federal Bill Aims to Prepare Feds for End of Cannabis Prohibition

4/19/2023

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A bipartisan bill reintroduced in the U.S. House on Tuesday aims to prepare the federal government for the end of cannabis prohibition nationally. The Preparing Regulators Effectively for a Post-Prohibition Adult Use Regulated Environment (PREPARE) Act is sponsored by Republican Rep. Dave Joyce (OH) and Democratic Leader Hakeem Jeffries (NY).

In a joint statement, the sponsors said the measure “creates a fair, honest and publicly transparent process for the federal government to establish effective regulations to be enacted upon the termination of its 86-year prohibition of cannabis.”

The PREPARE Act would direct the Attorney General to establish the Commission on the Federal Regulation of Cannabis to advise on the development of a regulatory framework modeled after federal and state alcohol regulatory frameworks.

The legislation would direct federal regulators to develop a regulatory and revenue framework to ensure safe production and consumption of cannabis, which the authors say, “would account for the unique needs, rights and laws of each state, and present such a framework to Congress within one year.”

The sponsors said the proposal builds upon the Obama and Trump Administrations’ efforts to “remedy the unjust consequences of the war on cannabis, particularly those suffered by minority, low-income, and veteran communities.”

Additionally, the bill would:

  • Help grant medical professionals critical research access and training.
  • Develop protections for the hemp industry, including cross-pollination prevention efforts.
  • Help ensure that absent the physician-prescribed treatment of a minor, cannabis remains an adult-only product.

In a statement, Joyce said the “end to federal cannabis prohibition is inevitable.”

“Now is the time for the federal government to respect the will of our constituents and begin the conversation on fair and effective cannabis regulation. The PREPARE Act will give lawmakers a bipartisan platform to legislate not only a fair and responsible end to prohibition but also a safer future for our communities.” — Joyce in a press release

Jeffries added that the legislation, “is one of the bipartisan solutions that will lay the groundwork to finally right these wrongs in a way that advances public safety and boosts our economy.”  

“Americans across the political spectrum recognize that now is the time for cannabis reform, and the federal government should be ready to embrace and lead this change,” Jeffries said in a statement. “Since the failed war on drugs began over 50 years ago, the prohibition of marijuana has ruined lives, families and communities – particularly communities of color.” 

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New Jersey Regulators Reverse Denial of Curaleaf’s Adult-Use Cannabis License

4/19/2023

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The New Jersey Cannabis Regulatory Commission (CRC) on Tuesday reversed its decision to deny the renewal of Curaleaf’s adult-use cannabis license, New Jersey Business Magazine reports. As part of the approval, Curaleaf will provide the commission with additional information regarding its labor practices and confirm its ongoing compliance with state law.   

When the CRC voted to deny Curaleaf’s adult-use license last week, members cited the company’s clash with unionization and lack of transparency and said the decision was due, in part, to its closing of one of its cultivation facilities and laying off of 40 employees. 

Following the reversal, Curaleaf CEO Matt Darin said the CRC decision “is an incredible victory” for the company’s 500 employees in New Jersey. Darin said the renewal is “vindication” for what the company “knew all along: Curaleaf is in good standing with the CRC and has fulfilled every requirement necessary for the renewal” of its adult-use licenses. 

Following the denial, Curaleaf Chairman Boris Jordan pledged to use “any legal means necessary” to “ensure renewal” of the license. Jordan said after the CRC decision to renew the license that it represents a “victory” for the firm, noting it generates “tens of millions” of dollars in state tax revenues and has invested “upwards of $75 million” to support the New Jersey cannabis industry.

“Curaleaf remains open for business,” Jordan said in a statement, “and will continue working collaboratively with the CRC Board and its staff to ensure our good standing in the State of New Jersey.”

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Veriheal Launches Fourth Annual Scholarship Fund

4/19/2023

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Colorado-based cannabis company Veriheal on Tuesday opened submissions for its fourth annual Innovation in Cannabis Scholarship Fund and announced it had increased its award funding from $25,000 to $30,000. The fund will award $10,000 to three students that they can use for college tuition and fees. 

To apply for the scholarship, students are asked to submit a 1,000-word essay about how they would improve the cannabis industry. 

Joshua Green, Veriheal co-CEO, noted that “Many students are still recovering from financial strain due to the COVID-19 pandemic.” 

“With the Innovation in Cannabis Scholarship, Veriheal is hoping to help relieve some of that strain and set up the next generation of cannabis industry leaders for success. Cannabis has enormous potential, whether that’s in medicine, industry, or cultural impact. Our scholarship helps young innovators fully understand and harness the benefits of the plant,” — Green in a press release 

The scholarship is open to current college students, recent high school graduates, and high school seniors who are starting college classes early. Submissions will be accepted until July 30 with winners notified in the fall. Winners will be chosen based on the creativity and sustainability of their ideas. Historically, submissions have included cannabis-derived art supplies, dispensary co-ops, yeast-based cannabinoids, and treatment for various debilitating medical conditions. 

The scholarship first launched in 2020, awarding $1,000 each to 10 individuals. 

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House Bill Would End 280E Tax Restrictions for Cannabis Companies

4/18/2023

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House Rep. Earl Blumenauer (D-OR) reintroduced a bipartisan proposal yesterday that seeks to let state-licensed cannabis companies throughout the country take the standard tax deductions afforded to any normal U.S. business. Originally co-sponsored by Reps. Blumenauer, Nancy Mace (R-SC), and Barbara Lee (D-CA), the Small Business Tax Equity Act addresses IRS Code Section 280E, a 1982 provision that prohibits the standard business tax deductions for operations associated with illegal drug trafficking and which — because the plant remains a federally scheduled substance — has vexed modern, state-legal cannabis operators for years.

If approved, the bill would exempt state-legal cannabis companies from the restrictions of 280E. The proposal has been introduced in previous sessions but never advanced.

“State-legal cannabis businesses are denied equal treatment under 280E. They cannot fully deduct the cost of doing business which means they pay two or three times as much as a similar non-cannabis business. This grotesquely unfair treatment incentivizes people to cut corners. If Congress wants to get serious about supporting small businesses and ending the illicit cannabis market, it is common sense that we allow legal cannabis operations to deduct business expenses, just like any other industry.” — Congressman Blumenauer, in a statement

In a press release following the latest unveiling of the bill, NORML Political Director Morgan Fox said the cannabis advocacy group “commends the sponsors of this legislation for their efforts to end the unjust federal overtaxation of licensed, state-regulated cannabis businesses.”

“Allowing [cannabis companies] to take the same federal tax deductions that most other businesses enjoy will facilitate new opportunities in the legal cannabis industry and make it more competitive with the unregulated market, which will directly benefit consumer health and public safety,” Fox said.

“The unfair application of the outdated 280E provision on state-licensed cannabis businesses is preventing our industry from reaching its full economic potential and our ability to successfully replace criminal markets in accordance with the will of the voters and state legislators that have implemented modern state marijuana programs across the country,” said National Cannabis Industry Association CEO Aaron Smith in a statement. “We commend Congressman Blumenauer and the bill’s original co-sponsors for leading this narrowly-crafted, sensible legislation that would resolve this unforeseen consequence and bring our tax code into the 21st century.”

Adult-use cannabis has been legalized in 21 U.S. states and a recent Pew Research Center report found that 48% of Americans have local, legal access to cannabis products.

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Nearly All Federal Cannabis Charges in 2022 Related to Trafficking

4/18/2023

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Nearly all federal cannabis charges – 98.8% – brought last year were for drug trafficking as federal charges for cannabis comprised just about 4% of all federal drug offenders, according to the U.S. Sentencing Commission 2022 Sourcebook of Federal Sentencing Statistics.

The majority of federal drug cases last year were methamphetamine related (48.5%), followed by powder cocaine (17.3%); fentanyl (12.6%); heroin (8.1%); crack cocaine (5.6%); and “other” drugs, which include Oxycodone/Oxycontin (301 cases); MDMA/ecstasy/MDA (72 cases), and synthetic cannabinoids (59 cases.)  

In all, federal law enforcement officials brought 806 cannabis-related federal charges, of which 796 were for drug trafficking, while seven were for possession in “protected locations,” which includes courts, and one charge related to continuing a criminal enterprise. 

The majority of the federal drug trafficking charges for cannabis were for between 100,000 and 399,999 grams – 137 cases in all. Another 38 charges were for trafficking between 1 million and 3 million grams, while 16 charges were for between 5,000 and 9,999 grams.  

A decade ago, federal law enforcement officials charged nearly 7,000 people for violating federal cannabis laws, which was more than any other drug violation charged at the federal level. 

The average sentence imposed on those convicted of breaking federal cannabis laws was 33 months, by far the lowest sentence, on average, for someone convicted of breaking federal drug laws.

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Here’s What We Know About Germany’s Upcoming Adult-Use Cannabis Pilot Programs

4/18/2023

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Last week in Germany, federal ministers from key parts of the nation’s government held a press conference in which they announced long-awaited components for what will serve as the foundation for the country’s national cannabis policy soon.

Throughout the press conference, Germany’s Health Minister Karl Lauterbach described components that will be very favorable for cannabis consumers’ personal freedoms. A possession limit of up to 25 grams of cannabis and a cultivation limit of a maximum of three plants is expected, with the legal age set at 18.

“In a first step, cultivation in non-profit associations and private cultivation should be made possible nationwide,” government officials stated in a press release after the historic press conference.

“In a second step, the sale in specialist shops will be implemented as a scientifically designed, regionally limited and time-limited model project. In the model project, the effects of a commercial supply chain on health and youth protection as well as the black market can be scientifically examined in more detail,” the press release also stated.

Local cannabis commerce pilot programs, which is what is being proposed in Germany, are not a new thing in Europe, although they do not seem to be common in other parts of the world. A cannabis commerce pilot program is already in operation in Basel, Switzerland. Starting back in February, 180 adults in Basel began making legal purchases through the local program, which expected to expand to 374 consumers in the future. Another pilot program is expected to start in Zurich in the future involving 2,100 consumers.

The following pilot program details were released after last week’s press conference in Germany:

  • The project duration is five years from the established supply chain.
  • There is a spatial restriction to delivery points and adult residents of certain districts/cities in several federal states (opt-in approach).
  • Within the framework of the law, approval of the sale of edibles is being examined in compliance with strict youth and health protection regulations.

“The previous restrictive handling of cannabis in Germany has failed. Banning cannabis criminalizes countless people, pushing them into criminal structures and tying up immense resources from law enforcement agencies. It’s time for a new approach that allows more personal responsibility, pushes back the black market and relieves the police and public prosecutor’s offices. We trust people more – without downplaying the dangers that can emanate from cannabis consumption,” stated German Federal Minister of Justice Marco Buschmann after the press conference.

According to Germany’s most recent Epidemiological Addiction Survey, roughly 8.8% of Germany’s population reported having consumed cannabis at least once during the last year.

“Cannabis is a common stimulant. It is often offered and used illegally in Germany. This is often a health hazard. Adolescents in particular are impaired in their social and cognitive development by cannabis. Despite this, more and more young people are using the drug. The black market goods are often contaminated and create additional health hazards. We can no longer accept this. That’s why we dare the controlled sale of cannabis to adults within clear limits and push back the black market, flanked by preventive measures for young people. Health protection is the priority. The previous cannabis policy has failed. Now we have to break new ground.” said German Health Minister Karl Lauterbach about cannabis policy in Germany.

As mentioned previously, another key component of the first phase of Germany’s legalization plan will be noncommercial associations or clubs. Membership will be capped at 500 consumers per club.

“Membership fees cover the cost price, staggered according to the quantity supplied (possibly with a basic flat rate and an additional amount per gram supplied). The number of members per association is limited to a maximum of 500 with a minimum age of 18 years and domicile or habitual abode in Germany. The number of associations can be limited by population density,” the previously cited press release stated.

“The use of cannabis is a social reality,” said Federal Minister of Agriculture Cem Özdemir after the press conference. “Decades of prohibition policies have turned a blind eye to this and, above all, caused problems: at the expense of our children and young people, the health of consumers and the law enforcement authorities. Now we are creating a coherent and pragmatic cannabis policy from a single source, from cultivation to consumption. Nobody should have to buy from dealers without knowing what they are getting. Through controlled cultivation and distribution within the framework of cannabis clubs, we strengthen youth and health protection. And: We cut the ground for organized crime, which does not even shy away from selling it to children. With a regional model project, we are also exploring the possibilities of a commercial supply chain.”

“The cornerstones of the 2-pillar model (“ C lub A nbau & Regional -Modell/ CARe ”) have been developed by the Federal Ministry of Health as the leader, as well as the Federal Ministry of the Interior, the Federal Ministry of Justice, the Federal Ministry of Agriculture, the Federal Ministry of Economics and the Federal Foreign Office in accordance with the technical responsibilities. The EU and international law limits were taken into account. On the basis of the key issues paper, the federal government will now present a draft law at short notice,” said officials.

“The federal departments are working on all parts of the project within the scope of their respective responsibilities under the overall leadership of the BMG. Both pillars are incorporated into concrete draft laws, with the working draft for pillar 1 being presented in April 2023, followed by the draft law for pillar 2. The results of the scientific report already commissioned on the effects of the legalization of recreational cannabis on health and youth protection in other countries are taken into account for both pillars,” government officials also stated.

The battle to legalize adult-use cannabis sales nationwide in Germany will continue, with the goal of eventually getting the European Union’s approval.

“At the same time, the Federal Government is continuing its efforts (particularly through the missions abroad) to promote its approaches to its European partners and is also examining the extent to which a sufficient number of EU Member States can initiate the initiative in order to comply with the relevant EU legal framework in the medium term to be made more flexible and developed further,” government officials concluded in their press release.

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University of Iowa Conducting Study Using Psychedelics as Alcohol Use Disorder Treatment

4/18/2023

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University of Iowa (UI) researchers are conducting a pilot study using psilocybin and ketamine as a treatment for alcohol use disorder, the Daily Iowan reports. The study will be conducted as a head-to-head comparison of the compounds; half of the study participants will be given psilocybin and the other half will be given ketamine and neither the researchers nor the subjects will know which the participants will receive. 

Study participants will start by having an MRI scan and a meeting with a therapist. They will then be administered their dosage and will receive another MRI scan after that. Researchers then evaluate the subjects over time and subjects will receive one last MRI scan three months after the drug was administered. 

Mark Niciu, an assistant professor at the UI’s Department of Psychiatry and the Iowa Neuroscience Institute, told the Daily Iowan that “There’s really a great need for better treatments for alcohol use disorder.” 

“…At least medication-based treatments with several [Food and Drug Administration] approved medications, but even so many patients don’t have adequate response to that. It’s all about providing relief from mental health disorders.” — Niciu to the Daily Iowan 

Candida Maurer, lead therapist for the study and licensed psychologist, said there is a two-hour meeting with a licensed psychologist before the administration of the medicine during which a history of the participant will be taken. Maurer said she will be using a mixture of body therapy, cognitive behavioral therapy, meditation, relaxation, inner-child work, and mind-body therapy with the subjects. 

The study is a first of its kind at the university.  

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Missouri Bill Would Only Allow Delta-8 Product Sales at Dispensaries

4/18/2023

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A bill proposed in Missouri aims to put the regulation of delta-8 THC products under the purview of the state Department of Health and Senior Services (DHSS) and permit the sale of such products only at DHSS-licensed cannabis dispensaries, FOX 2 Now reports. State Rep. Kurtis Gregory (R) said the reason he introduced the bill is because there are no age limits on who can purchase the products. 

During a hearing on the bill last week, both Democrats and Republicans pushed back on putting the products under the DHSS umbrella, arguing that the move would allow a “marijuana monopoly” to take over due to the limited number of cannabis licenses in the state.  

The measure also contains provisions prohibiting businesses from manufacturing or selling “any product that contains synthetic cannabinoids or cannabimimetic agents” which some lawmakers contend would hurt the state’s hemp industry.   

State Rep. Peter Merideth (D) described the bill as “sort of using a hammer instead of a scalpel to address this problem.” 

Missouri does not have a state hemp program or state hemp regulators, relying instead on the U.S. Department of Agriculture (USDA) to administer hemp licensing and oversee farms. The USDA only regulates the concentration of delta-9 THC in raw hemp. 

Sean Hackmann, president of the Missouri Hemp Trade Association, indicated that there are about 20 companies in Missouri processing hemp for delta-8 products. 

“They call it unregulated, which technically, it is,” he said in the report. “It’s self-regulated, except for the fly-by-night idiots who don’t care. We spent a lot of money on testing these products to make sure there’s no metals… contaminants or anything in these products.” 

The measure remains on the House calendar but without a date for consideration for a vote. 

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