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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Swiss Government Approves Cannabis Legalization Trial

3/24/2023

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Switzerland’s government has approved a trial to legalize the sale and consumption of cannabis and assess the social and economic benefits of regulating cannabis products, CNBC reports. Starting this summer, a test group of 2,100 Zurich residents will be allowed to purchase regulated doses of cannabis for personal use from pharmacies, dispensaries, and social clubs in the city. 

As part of the study, participants will be expected to answer a questionnaire every six months on their cannabis consumption habits and health effects. The study is conducted in collaboration with the University of Zurich. Barbara Burri, project manager at Zurich’s municipal health department said, “The idea is to get robust real-world evidence that serves policymaking for new regulation on cannabis.” 

Zurich residents who are active cannabis consumers, of legal age, have no underlying medical conditions, and are not employed as professional drivers may register to participate in the program, the report says. According to public health surveys, about a third of adults in Switzerland have tried cannabis, In Zurich, which has more than 420,000 residents, an estimated 13,000 residents are regular cannabis consumers. 

Other similar studies and trials with public and university sponsors are also planned in the cities of Basel, Bern, Lausanne, Geneva, Biel, Thun, Olten, and Winterthur over the coming months. 

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South Dakota Gov. Vetoes Bill to Raise THC Threshold for Hemp Crops

3/24/2023

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South Dakota Gov. Kristi Noem (R) on Thursday vetoed a bill to raise THC levels allowed for unprocessed industrial hemp from 0.3% to 5%. Raising the THC threshold to 5% would have allowed for another processor to extract THC as it develops more uses for hemp after the initial process is completed. 

In her veto statement, Noem said the proposal would have changed the definition of “product in process” by increasing the THC limits which would have allowed hemp products and crops in the state “to contain over 16 times more THC than is currently allowed at the federal level.” The federal limits classify hemp as containing 0.3% THC or less.  

“Only two states allow a product in process to contain up to 5% THC: Colorado and New York, both of which have legalized recreational marijuana. South Dakota voters spoke clearly this past November: they do not want recreational marijuana. If I allowed this bill to become law, it would jeopardize the clearly expressed will of the people. Increasing the THC level to 5% would hinder our successful hemp program and undermine enforcement of our drug laws.” — Noem in the veto statement 

The bill had explicitly noted that consumer products could not contain 5% THC and that the hemp would be transported between processors in containers marked “not for human consumption.”  

The measure had passed the House on Monday with enough votes to overcome a veto; however, it passed 21-14 in the Senate – short of the two-thirds support required to overcome a veto.   

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Afroman Sued By Police For Using Raid Footage In Music Videos, Social Media

3/23/2023

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Seven police officers with the Adams County Sheriff’s Department in Ohio are suing the rapper Afroman, legal name Joseph Foreman, over his use of home security footage from a raid they carried out at his house last September, FOX19 reports.

The plaintiffs claim that Afroman has illegally profited off footage that shows their faces without consent in music videos and to generate social media engagement, which has resulted in “emotional distress, embarrassment, ridicule, loss of reputation and humiliation.” The lawsuit claims the plaintiffs are entitled to all the proceeds from Afroman’s use of the footage, including revenue from the music videos and songs he released following the raid — his recent songs “Lemon Pound Cake” and “Will You Help Me Repair My Door” reference the raid directly — as well as from event ticket and merchandise sales.

During the raid, armed police officers forcedly entered the home to ultimately confiscate a vape pen, a couple of roaches, and several thousand dollars in cash. Afroman, the rapper behind popular stoner anthems “Colt 45” and “Because I Got High,” said police also damaged his front gate and security camera system and traumatized his family.

Anna Castellini, an attorney for Afroman, said in a statement posted to the rapper’s Instagram:

“We are waiting for public records requests from Adam’s County we still have not received. We are planning to counter-sue for the unlawful raid, money being stolen, and for the undeniable damage this had on my client’s family, career, and property.” — Castellini, via Instagram

 

 

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Montana Lawmakers Table Bills to Change Marketing Rules & Require Pregnancy Warning Labels for Cannabis Products

3/23/2023

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Lawmakers in Montana this week considered changing the advertising and labeling rules under the state’s adult-use cannabis law, the Missoula Current reports. One measure would bar adult-use cannabis businesses from promoting their brands in print, on TV or radio, or on billboards, while another would revise labels on packaging to include warnings about using cannabis while pregnant.

Under the current adult-use law, licensees are not permitted to advertise “marijuana or marijuana products” but are allowed to advertise their brand, as allowed by the Montana Department of Revenue.

The measure was opposed by the Montana Cannabis Industry Association and the Montana Newspaper Association. Both organizations said most industry operators have gone to great lengths to ensure their marketing follows the law and that the issues lawmakers are concerned about are coming from a few bad actors.

Kristan Barbour, administrator of the Department of Revenue’s Cannabis Control Division, estimated that only about seven or eight licensees, out of more than 400, have violated state advertising requirements.

The labeling measure would force cannabis products to carry a warning that cannabis consumption during pregnancy could lead to “congenital anomalies, and inherited cancers developed by a child later in life.”

Opponents of the bill questioned whether existing data justifies the concerns this warning language would raise.

Both measures were heard by the Senate Business, Labor and Economic Affairs Committee on Monday but the panel did not take any action on either proposal, and both were tabled later in the week.

Editor’s note: This article was updated to note lawmakers’ decision to table both proposals.

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Kansas Senate Committee Tables Medical Cannabis Bill

3/23/2023

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A Kansas Senate Committee last week tabled a medical cannabis legalization bill, likely killing the bill for the session, the Associated Press reports. On Twitter, Democratic Gov. Laura Kelly said she was “disappointed that some legislators are saying they don’t want to move forward with legalizing medical marijuana this year – effectively turning their backs on our veterans and those with chronic pain and seizure disorders.” 

“If they get their way, for yet another year thousands of Kansans will be forced to choose between breaking the law and living without pain. I encourage Kansans to call their state legislators and tell them to legalize medical marijuana this session.” — Kelly via Twitter 

The measure would have allowed physicians to recommend non-smokable medical cannabis products to treat 21 illnesses or conditions, including cancer, epilepsy, spinal cord injuries or chronic pain, starting in July 2024. The legislation would have required both medical cannabis patients and their caregivers to register with the state health department to purchase cannabis at state-licensed dispensaries and the state would have imposed a 10% tax on medical cannabis sales. 

The House passed a medical cannabis bill in 2021, but the measure didn’t receive a committee vote in the Senate. 

Kansas is one of just four states where cannabis use of any kind remains outlawed. 

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Killeen, Texas Police Have Released 77% of Cannabis Offenders Since Local Decriminalization

3/23/2023

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Police in Killeen, Texas have released 77% of individuals they have come in contact with who were in possession of cannabis following the voter approval of a local decriminalization measure last November, the Killeen Daily Herald reports. Police Chief Charles Kimble said officers had contacted 188 individuals who “had some sort of marijuana on them” since the passage of the law. 

Of those 188 people, 146 were released “because it fell within the guidelines” of the voter-approved ordinance, while 42 people were arrested. Those that were released did have their cannabis seized.  

“In our policy … we are going to follow the law. We want to make this city safe by removing some of the worst violators off the streets of Killeen, and we think we are doing that even in the confines of this ordinance. This policy does not hamper that.” — Kimble via the Daily Herald 

Under the ordinance, police are not supposed to arrest anyone they find in possession of 4 ounces or less of cannabis. The measure was approved by nearly 70% of Killeen voters. In December, Kileen councilmembers amended the law to prevent city police officers from using the odor of cannabis as probable cause for search and seizure, the report says. 

Kimble presented the data during his first Marijuana Enforcement Ordinance Implementation Report, which included information from November 9, 2022, through February 28, 2023. 

County Commissioner Louie Minor said during Kimble’s presentation that the ordinance is doing what officials had hoped but said he would like future reports on the law’s implementation to include data on the race and age of those possessing cannabis when contacted by police and the result of that interaction.    

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Missouri Has Expunged 15,000+ Cannabis Crimes Since Adult-Use Reforms

3/22/2023

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Following adult-use cannabis legalization in Missouri, the state has granted more than 15,000 expungements of nonviolent misdemeanor and felony cannabis crimes, KMOV reports. Under the state’s voter-approved adult-use cannabis law, possession of up to three ounces is legal for adults and all eligible misdemeanors for individuals who completed their sentences must be expunged automatically by June 8, while low-level felonies must be expunged by December 8.  

Charges that included selling cannabis to a minor, violence, or driving under the influence are not eligible for relief. Individuals currently incarcerated for cannabis convictions, including past misdemeanors and Class E and D felonies involving possession of under three pounds, can ask the court to vacate the sentence, which would lead to an immediate release and the expungement of the record.

Individuals on probation or parole will have their records automatically expunged and all prior Class A, B, C, or D felonies for possession over three pounds will be expunged automatically after the person completes their sentence. 

In order to complete the expungements required under the law, the Missouri Office of State Courts Administration has submitted to the legislature a supplemental budget request for this fiscal year, asking for about $2.5 million in additional funds to cover overtime for clerks and hire additional information technology professionals, according to a KCUR report. In the request, the agency said it would also need $2.2 million in personal services dollars “for the increased workload of the courts, utilizing temporary staff and overtime.”  

The Court Administration said it would incur costs for expungements, sentences automatically vacated within specified timeframes, and creation of a special index of expunged cases. 

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Oklahoma Bill Would Let Medical Cannabis Agency Shut Down Non-Eco-Friendly Operations

3/22/2023

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The Oklahoma Senate on Tuesday passed a measure that would allow the director of the state Medical Marijuana Authority to shut down cannabis operations that are damaging the environment, KOKH reports. Sen. Joe Newhouse (R) authored the legislation and argued that it would help reign in medical cannabis operations in the state that are not following state law. 

“They’re flaunting our laws. They’re not taking care of our land. Many are abusing our environment, and we need to stop this. … “One of the tell-tale signs of black market operators is their destruction of the environment. There’s contaminants, there’s runoff, even sometimes human waste that’s not being taken care of.” — Newhouse via KOKH  

Oklahoma has one of the nation’s most permissive medical cannabis programs, but it has been rife with controversy. Last year, two Oklahoma attorneys were charged in a “Ghost Owner” scheme for putting their assistants’ names on more than 400 cannabis cultivation applications for non-residents. Later that year, four people – all Chinese citizens – were murdered at a cannabis farm. The suspect, Wu Chen, was also a Chinese national and the alleged straw owner of the farm, Richard Ignacio, was arrested and charged with felony conspiracy against the state. 

Travis C. Smith, the founder of Smokey Okie’s Cannabis, told KOKH that “there are thousands of illegal grows” in the state and that officials “could walk in and shut down overnight if they just visited them.” He added that he doesn’t think Newhouse’s law will do much to stop them.     

“This legislature is fired up to pass a lot of anti-cannabis legislation,” he said in the report, “but until start enforcing the rules they have, against, against the bad actors, passing more rules just isn’t going to make a difference.” 

The measure will be considered next by the House. 

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Bill to Add Autism and PTSD to Arizona Medical Cannabis Program Passes Committee

3/22/2023

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A bill proposed in Arizona would allow patients with autism and post-traumatic stress disorder (PTSD) to access medical cannabis products in the state, the AZ Mirror reports. The measure passed the House Health and Human Services Committee 7-2 on Monday. 

Earlier this month, the legislation was approved by a bipartisan 24-6 vote in the state Senate and will move next to the full House after approval by the Health and Human Services Committee. 

During testimony on the measure, Aaron Jacobs, the father of a nine-year-old son with severe autism, told the panel that cannabis therapy would be preferable for his son as the medications he currently uses include harsh side effects. 

“This is not about drugging our children so that they are manageable. This is about improving their quality of life, as well as the family’s quality of life, and the right to try a natural, plant-based medicine. … The potential to help regulate his nervous system naturally could lead to a better quality of life, and possibly some form of independence.” — Jacobs via AZ Mirror 

Because the state’s medical cannabis law was created via a constitutional amendment approved by voters, it requires two-thirds of lawmakers’ support in order to be changed. The 24 votes in the Senate are four more than required to change the law. In the House, the bill would require support from at least 40 members.  

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Blue River: A Terpene-Powered Cannabis Success Story

3/22/2023

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Blue River was founded in California as a cannabis-derived terpene company in 2015 by master extractor and inventor Tony Verzura. The company quickly took the then-nascent industry by storm and has since grown into a multi-state operation. In Spring 2023, the Blue River flagship retail store will open in Cambridge, Massachusetts. In the wake of its growth, Blue River remains family-owned and its business model centers on clean, innovative cannabis products.

Just after founding Blue River Terps, Verzura met his wife Jessica Pelletier, an entrepreneur who was working as a cannabis business consultant specializing in M&A, compliance, licensing, and general business strategy. When she met Verzura, Blue River was a Northern California brand beloved by consumers and revered by hash heads. The craft brand had a big following, and Verzura handled every detail of the business personally. When Pelletier joined the team, she saw an opportunity to pivot the business model to avoid the issues facing many family-owned Northern California cannabis companies. Knowing what she did about IP royalty leasing and brand expansion, Pelletier pitched a new direction for the operation.

Blue River shifted from a manufacturing company to a tech company in 2018. They lease their intellectual property to cannabis businesses with infrastructure proven to put products on retail shelves. “It completely changed our business model and really brought us mainstream, especially on the East Coast,” Pelletier said. “We were the first West Coast brand to launch in Florida and the East Coast in general. We partner up with MSOs that hold the same values as us, especially in the space of women-owned, women-led, commitment to diversity, and upholding the values in terms of the manufacturing side and not cutting corners in the cultivation.” The Blue River IP lease includes live rosin, vape carts, and patent-pending CBN but what is offered to consumers varies by state.

When implementing Blue River IP in new facilities, Verzura and the team are hands-on to ensure quality and brand continuity. Labs manufacturing Blue River products maintain constant communication with the cannabis inventor as he continues to R&D new products. Verzura is always testing new products like boba and astronaut ice cream. Pelletier describes eating five-star meals together and watching his mind race as it considers new flavors and methods with which to pair the cannabis terpenes. Some Verzura inventions can only be copped at pop-ups, some make it into the leasable product line, and some will only be available at Blue River farm-to-table dispensaries.

Eventually, Blue River’s founders were ready to differentiate the market and establish their own flagship retail dispensary. After five years spent pursuing a license and space in Cambridge, Massachusetts, the project is finally set to launch. Pelletier describes it as the culmination of their careers: “We are offering an entirely different dispensary experience. We’re launching ourselves as a farm-to-table destination dispensary.”

As they plan logistics, one primary concern is ensuring customers can find the same products every visit. This is an issue in many markets. In Washington state, for example, I am lucky to find the same flower product available at my neighborhood dispensary two visits in a row. Blue River plans to alleviate this common issue in Massachusetts by utilizing access to IP partner Trulieve’s supply chain. In addition, Verzura has been studying the plant for decades and has dialed in which genetics perform best in hash and which will push out quality flower to package. This knowledge is used to maximize quantity and quality while minimizing R&D time. All products available in Blue River will be completely solventless, and many will be Blue River originals. “We will be offering our signature line of products, so everything that made us famous on the West coast will only be available in our store,” Pelletier said. The store will carry other hand-selected Massachusetts brands with fifteen percent of shelf space reserved for economic empowerment and social equity companies.

The commitment to social equity carries over into staffing: Blue River hiring practices have always focused on those who have been directly harmed by the war on drugs through incarceration or familial incarceration. “It really plays into everyone’s desire to give back to the community that built us all. Anyone who is in the cannabis space, kind of like an OG, they started in that illicit market. So I think that it’s really important to not lose sight of where everybody got their roots from, to not lose sight that not everyone isn’t as lucky to make it out unscathed and have a flourishing business,” Pelletier said. “That’s why I feel that the hiring requirements and economic empowerment aspect of our business is really important. Not only do we get to make this incredible store that is very unique in concept and the first of its kind, but we also get to give back to the direct community through our hiring and incubator requirements of the state.” The company also focuses on hiring veterans, LGBTQ+, people of color, people with disabilities, and women.

Blue River is a Northern California cannabis success story that can be credited to recognizing their unique commodity and pivoting towards growth. Find Blue River products near you and check out the product line at blueriverterps.com. As for their flagship Massachusetts store, doors are expected to open sometime in March 2023 followed by a second location in Somerville.

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Texas Lawmakers Vote to Expand Medical Cannabis Program

3/21/2023

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Texas lawmakers in the House Public Health Committee advanced a proposal on Monday that would allow doctors to recommend patients who are experiencing chronic pain to the state’s medical cannabis program, Marijuana Moment reports.

The medical cannabis reforms bill by Rep. Stephanie Klick (R) would also remove the state’s THC cap for medical cannabis oils, replacing it with volumetric doses of 10mg of cannabis oil. Currently, Texas’s cannabis program only gives participating patients access to cannabis oil products with just 1% THC content.

The proposal originally sought to raise the state’s THC cap from 1% to 5% but lawmakers in the House Public Health Committee scrapped the cap entirely in favor of a system of volumetric dosages.

By adding chronic pain to the state’s list of medical cannabis qualifying conditions, the Texas program could expect to see a dramatic boost in patient numbers, particularly among those who are looking for treatment alternatives to opioids. The bill would also allow officials with the Texas Department of State Health Services to add additional qualifying conditions to the program later on.

Currently, only patients with one of nine debilitative conditions — epilepsy, multiple sclerosis, amyotrophic lateral sclerosis, spasticity, autism, cancer, a seizure disorder, an incurable neurodegenerative disease, and PTSD — can access the program.

The bill moves next to the Calendars Committee to be scheduled for consideration by the full House floor.

If fully approved, the bill would take effect starting September 1, 2023, the report said.

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New Political Action Committee to Back Candidates Who Support Psychedelics

3/21/2023

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A newly-formed political action committee aims to back candidates for office that back the use of psychedelics for therapeutic purposes, NBC News reports. The Psychedelic Medicine PAC also aims to secure federal funding to further education and research efforts for psychedelics but stops short of calling for full legalization or decriminalization of the substances.

In an interview with NBC News, Ryan Rodgers, co-founder and executive director of Psychedelic Medicine PAC, said the group has “to convince a historically stubborn audience around psychedelics that it’s not the 1960s.”

“People aren’t going to stare into the sun for their eyes to blow out. People aren’t going to jump off a building. This is about healing trauma. It’s not about recreation.” — Rodgers to NBC News

 Melissa Lavasani, the group’s co-founder and executive director, told NBC News that “a research approach and a science-drive approach is really the path of least resistance.”

“It’s going to take a little longer – it’s a very slow approach and it’s very methodical what we’re trying to do,” she said, “but it’s a way to ensure people feel comfortable buying into this issue.”

The group is in the early stages of fundraising but aims to raise $10 million in the first year.

Dustin Robinson, founder of Iter Investments, a psychedelics venture capital firm, told NBC News that the group is “going to have an extremely hard time” if they pushed for federal reforms such as decriminalization or rescheduling.

“But if their goal is to create more policies around what’s happening with psychedelics in the therapeutic space, the federal government appears very open to that,” he said in the report.

So far, Oregon and Washington, D.C. voters have approved reforms to allow the therapeutic use of psychedelics. Last year, the Biden administration indicated it was considering the possibility of creating a task force to study psychedelics, anticipating the Food and Drug Administration would approve psychedelic therapies in the coming years.

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Illinois Made $36.1M Last Year from Wisconsin Residents Crossing the Border to Buy Cannabis

3/21/2023

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Illinois made $36.1 million last year in tax revenues from cannabis sales by Wisconsin residents, according to a memo from the Wisconsin Legislative Fiscal Bureau (LFB). The report came at the request of state Sen. Melissa Agard (D) who has been pushing for cannabis legalization in the state since 2013. 

According to the LFB report, citing Illinois Department of Financial and Professional Regulation (IDFPR) data, Illinois dispensaries made $1,552.3 million in cannabis sales – excluding tax revenue – in calendar year 2022. The IDFPR indicates that $239.7 million, or 15.4%, of those sales were generated by dispensaries located in counties bordering Wisconsin.  

“Of the sales made in counties bordering Wisconsin, $121.2 million, or 50.6%, of these sales were to out-of-state residents. Relative to marijuana sales statewide, approximately 7.8% of total cannabis sales revenue in Illinois came from sales made to out-of-state residents in counties bordering Wisconsin in calendar year 2022.” — LFB memo, “Illinois Marijuana Tax Collections on Sales and Estimated Wisconsin Residents,” Mar. 10, 2023 

A February Wisconsin Policy Forum report found that half of the state’s residents aged 21 or older – or about 2.16 million people – already live within 75 minutes of an adult-use dispensary in either Illinois or Michigan and another 30% live within an hour’s drive.    

The IDFPR analysis provided in the memo assumes that all sales to out-of-state residents in Illinois counties bordering Wisconsin were made to Wisconsin residents and estimates that such sales constitute 7.8% of total Illinois cannabis-related tax revenue. The memo notes that “it is possible that not all sales to out-of-state residents in counties bordering Wisconsin were made to Wisconsin residents.”  

In a statement, Agard said that Wisconsinites should be “upset” that their “hard-earned tax dollars are going across the border to Illinois.” 

“This is revenue that could be going toward Wisconsin’s public schools, transportation infrastructure and public safety,” she said. “Instead, Illinois is reaping the benefits of Republican obstructionism and their prohibitionist stance on marijuana legalization.” 

Agard added that Wisconsin is “an island of prohibition and the people of our state are hurting because of it.”  

“As seen in our neighboring states, legalizing marijuana for responsible adult usage will generate significant revenue for our mainstreets, safely regulate the existing illicit market, reinvest in our agriculture and farming heritage, support entrepreneurship, and address the massive and egregious racial disparities from marijuana prohibition,” she said in the statement. 

Democratic Gov. Tony Evers has included cannabis legalization in his annual budget proposal. In 2021, he was teased by Illinois Gov. J.B. Pritzker who thanked him for the tax revenues provided to the state by Wisconsin residents who cross the border to buy cannabis. 

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Nevada Bill Would Allow Cannabis Vending at Some Events

3/21/2023

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A bill introduced in Nevada aims to allow mobile cannabis vendors at events that are 21-and-up, KSNV reports. The measure would create licenses for vendors to sell cannabis at certain events, like concerts, if the licenses are permitted by municipalities. 

Under the proposal, social-equity applicants would receive priority for the licenses. A’Esha Goins, founder of the Cannabis Equity and Inclusion Community, which is lobbying for the bill, told KSNV that the licenses would remove the huge financial burden for social equity applicants seeking other industry opportunities.  

“This is the Nevada. This is truly what we do we introduce small businesses. We establish new ideologies. We are innovated when it comes to how businesses show up. So yes, I think this is the next wave.” — Goins to KSNV 

The bill would permit the state Cannabis Compliance Board to create license rules and requirements and allow it to impose fees. The measure was referred to the Assembly Judiciary Committee on March 7.

Among all of the states that have legalized cannabis for adult use, California is the only state so far that explicitly allows cannabis to be sold at concerts and other live events. In New York, cannabis consumption is allowed anywhere tobacco can be consumed, which broadens opportunities for cannabis consumption at many outdoor events. 

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The Next Generation Of Cannabis Processing: Automated Trimmers

3/21/2023

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As the legalization of cannabis expands within the US and abroad, cultivators are continually seeking ways to improve their processes and operations. As a result of this, the cannabis industry has seen a significant shift in recent years as the demand for high-quality products continues to rise.

One of the most significant changes is the shift from manual cannabis processing and hand trimming to machine trimming and automated processes. This shift has led to increased efficiency and consistency in the production process, while also improving the quality of the end product.

The History of Cannabis Trimming

Cannabis trimming has a long history that dates back centuries. The earliest recorded consumption of cannabis traces back to Asia, where it was used in religious ceremonies and as a medicine. Even back then, cannabis plants were being trimmed by hand to discard excess material that was not needed for those ceremonies or medicinal purposes.

From those early days of cannabis through the rise of commercial cultivation in the 20th century, hand trimming became the industry standard practice for preparing flower for sale. Businesses would hire a team of hand trimmers to manually cut and trim the buds to their desired shape and appeal.

As the industry grew and market demand increased, it became clear that manual trimming was inefficient and time-consuming, and cultivators adapted their practices to welcome new technologies that would help them with their volume of harvests and efficiency of processing. This led to the development of the first machine trimmers, which were introduced in the late-1900s.

A New Age of Cannabis Processing

The first-generation machine trimmers were crude and inefficient, and they often damaged the buds, resulting in a lower-quality end product. Over time, however, technology and machine trimmers became more advanced, with improved cutting systems, better control over speed and flow, and more precise sensors.

Today, machine and automated trimming is the preferred method for large-scale cannabis cultivation and commercial facilities, with many cultivators using high-tech trimmers like the Mobius M108S to streamline their production processes and improve the quality of their flower.

Farms that choose manual processing require a large team of seasonal hand trimmers to take the flower from harvest to sale-ready product. Trimming by hand is a tedious, labor-intensive process that requires hours of work each day and ample experience. Workers with varying levels of experience will trim the buds to different degrees, leaving inconsistent results across the same harvest.

While some individual, boutique, and smaller operators may still utilize hand trimming to process their harvest, most cultivators and commercial growers have switched to machine trimming their flower.

Automated Cannabis Trimming Machines

Automated cannabis trimmers like the M108S are designed to trim flower with precision and speed. The Mobius Trimmer is capable of processing up to 120 lbs per hour and can process both wet and dry flower to accommodate any operation. The M108S is equipped with surgical-grade stainless steel bed knives that flex against the helical blades, ensuring the two cutting edges remain in constant contact with each other, resulting in no gaps or dead spots.

Automated machine trimmers provide increased efficiency, as they can trim significantly more than what can be achieved through manual hand trimming. The trimming timeline is greatly reduced, with full commercial-scale harvests being processed in a few hours versus days or weeks. As a result, flower goes from harvest to sale in a fraction of the time, and cultivators can deliver product on a regular and consistent basis.

In addition to faster processing times and increased efficiency, machine trimming also allows for reduced labor costs and improved working conditions. With a trimmer like the M108S, cultivators and cannabis processors can save thousands on seasonal employees and reduce risks like theft and repetitive strain injuries.

An automated cannabis trimmer like the M108S Trimmer delivers high-quality results. With premium features that come standard with the machine, cultivators can ensure an ultra-consistent trim and optimal bud quality. With this, producers have a steady flow of product going out and profit coming in, allowing for growth and further automation implementation.

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Court Rules Insurers May Reimburse Injured Workers for Medical Cannabis

3/20/2023

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A Pennsylvania appeals court last Friday ruled that the state’s medical cannabis law does not prohibit insurers from reimbursing injured workers for medical cannabis in cases where it is used to treat accepted work-related injuries, according to a Business Insurance report. The Pennsylvania Commonwealth Court decision found that the state’s Workers’ Compensation Appeal Board erred when it upheld a decision by Firestone Tire & Rubber to deny reimbursement for the cost of an employee’s medical cannabis. 

The claimant, Paul Sheetz, who is now deceased, used medical cannabis to treat chronic pain linked to a 1977 work injury and used cannabis to wean from decades-long use of prescribed opioids, the report says. 

Jenifer Kaufman, the attorney who represented the Sheetz’s estate, said after the ruling that the decision “is a game-changer for those injured workers who have worked hard to get off dangerous and expensive opioids and are forced to pay the cost of medical marijuana treatment out of their fixed incomes.” 

“I am so excited that the Commonwealth Court, in their wisdom, agreed that workers comp carriers are required to reimburse injured workers who use medical marijuana to treat severe and often life-long injuries.” — Kaufman via Business Insurance 

Kaufman added that the court’s ruling means insurers must cover medical cannabis costs when treatment is deemed “reasonable and necessary,” and that reimbursement would likely only be available in serious or old injury cases where medical cannabis is the “primary treatment modality.”     

Firestone had argued that reimbursing medical cannabis costs would run afoul of federal law; however, the court concluded that it is not a federal crime because insurers are not recommending cannabis themselves. 

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Hemp Company Sues Partner Over Alleged ‘Ponzi Scheme’

3/20/2023

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A New Jersey hemp company is suing a Massachusetts biotech company claiming it operated a “Ponzi scheme” by using more than $700,000 it raised from the firm to fund its own projects, Salem News reports. In its lawsuit against the Salzman Group, Delta Technologies claims the drug development company took their money and used their machinery in other, failed, projects. 

According to the lawsuit, Salzman Group Chairman and CEO Dr. Andrew Salzman agreed to put together a “large team of scientists” to help Delta and its manager, Alexander Jacobs, obtain a patent to produce different types of hemp products. Jacobs and Delta agreed to pay the Salzman Group $20,000 per month for the project. The lawsuit alleges that, at first, Salzman told Jacobs that the team had made “dramatic” short-term progress, but the lawsuit contends that Salzman eventually stopped giving Jacobs updates or providing evidence of progress toward a commercially viable product. 

The lawsuit contends that Jacobs also agreed to provide cash to the Salzman Group to start a small laboratory in Beverly, Massachusetts to produce a “rare cannabinoid” to sell in Europe and “across the world” but Jacobs said the Salzman Group “never delivered the product on time,” and the deliveries that were made were “too small” to fulfill all of Jacob’s clients’ orders. In the lawsuit, Jacobs said he learned later that Salzman had never moved the product’s production to the Beverly laboratory. Jacobs also claims that the machinery provided to the project was never returned and that Delta has been unable to retrieve them.  

The lawsuit accuses the Salzman Group of intending to defraud, and defrauding, Delta “out of hundreds of thousands of dollars to pursue their own interests” with “no intent to ever produce the product plaintiffs needed.” The lawsuit accuses the Salzman Group of breach of contract and fraud. 

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