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Wyoming House Committee Tables Bill to Ban Synthetic Cannabinoid Sales to Minors

1/30/2023

Wyoming’s House Education Committee last week tabled a bill that would have imposed penalties for sales to and possession of synthetic cannabis products for individuals under 21 years old, Cowboy State Daily reports. The committee voted unanimously to curb the measure in order to allow further clarification of what defines a synthetic cannabis product.

The proposal would have imposed fines between $250 and $750 to individuals caught selling the cannabis products to minors and those caught purchasing the products would have faced misdemeanor charges, including a $50 fine or community service. The misdemeanor charge could be expunged once the offender fulfilled those penalties, the report says.

Several individuals asked the committee to change the bill’s definition of “synthetic cannabis,” arguing that, as written, the measure would ban those under 21 from buying CBD products. During his testimony, cannabis researcher Sean Murphy said the bill should ban “synthetic isomers.”

“What we should be doing is… protecting people and finding bad operators that are selling Delta 8, Delta 9. The term is synthetic isomers; these get you high whereas [CBD] products don’t get you high.” — Murphy via Cowboy State Daily

The Wyoming Department of Health also backed changing the definitions included in the bill as written.

Rep. Sandy Newsome (R), the bill’s sponsor, told the committee that the measure, as written, would not ban topical products and that she kept the CBD language in the legislation to “get away from this whack-a-mole theory” in which the Legislature bans new drugs individually rather than all at once.

The bill could be reconsidered by the committee with or without changes.

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FDA Will Not Issue CBD Regulations, Plans to Work with Congress Instead

1/27/2023

The Food and Drug Administration on Thursday denied three petitions to allow the marketing of CBD products as dietary supplements and said that the agency would “work with Congress” on a regulatory pathway for the cannabinoid.

The statement was issued by Principal Deputy Commissioner Dr. Janet Woodcock.

“The use of CBD raises various safety concerns, especially with long-term use. Studies have shown the potential for harm to the liver, interactions with certain medications and possible harm to the male reproductive system. CBD exposure is also concerning when it comes to certain vulnerable populations such as children and those who are pregnant.” — Woodcock in a statement

Woodcock said the decision would allow policymakers to develop “a new regulatory pathway for CBD … that balances individuals’ desire for access to CBD products with the regulatory oversight needed to manage risks.”

Woodcock also said there are concerns about the potential risk of CBD for animals and that “people could be unknowingly exposed to CBD through meat, milk and eggs from animals fed CBD.”

“Because it is not apparent how CBD products could meet the safety standard for substances in animal food,” she writes, “we also do not intend to pursue rulemaking allowing the use of CBD in animal food.”

She added that the agency has “not found adequate evidence to determine how much CBD can be consumed, and for how long, before causing harm” and, therefore, “do not intend to pursue rulemaking allowing the use of CBD in dietary supplements or conventional foods.”

An FDA report from 2021 noted that the CBD market has grown rapidly in recent years and estimated its worth at $4.6 billion.

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Minnesota Senate Hears Cannabis Legalization Bill

1/27/2023

A Minnesota Senate committee this week heard testimony on an adult-use cannabis legalization proposal – the first time any of the chamber’s committees have taken up a legalization measure, KARE11 reports. The bill, proposed by Sen. Lindsey Port (D), would allow retail cannabis sales and includes expungement provisions.

Similar versions of the bill have passed the state House in the past but have never been taken up by the Senate – both chambers had been under Republican control, but Democrats won majorities in both the House and Senate last November.

During the Public Safety Committee hearing, Port indicated the bill “will have 18 committee stops” before making it to the floor for a vote. A companion version in the House earlier this month passed the chamber’s Commerce Finance and Policy Committee.

The measure was opposed during the hearing by the Minnesota Sheriffs’ Association and the Minnesota Trucking Association. Both organizations delivered opposition testimony during other committee hearings on the measure.

On a voice vote, the committee passed the bill without recommendation, but expects to hear more on the bill in the future as it works its way through the legislative process.

According to a Marijuana Moment report, the House version this week also passed the House Labor and Industry Finance and Policy Committee – the fourth committee it cleared in the chamber – and the Senate version passed the Commerce and Consumer Protection Committee.

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Northwest Missouri State University Partners with Green Flower for Cannabis Education Program

1/27/2023

Northwest Missouri State University (NWMSU) is the latest U.S. college or university to partner with cannabis education company Green Flower for a cannabis certificate program, KSHB41 reports. So far, 170 students have enrolled in the program.

In an interview with KSHB, NWMSU Associate Provost Dr. Jay Johnson, noted that the course “is not an advocacy program to help get people out of prison” and “not an advocacy program for people to use the drug or to take it medicinally,” rather a way to show people how the “plant works.”

“There’s not a whole lot of education around it, other than the experience of people who have been doing this for years, perhaps in their basements.” — Johnson to KSHB

The program includes four eight-week courses, including the Business of Cannabis, Cannabis Compliance and Risk Management, Cannabis Healthcare and Medicine, and Cannabis Agriculture and Horticulture. Students do not have to be enrolled in NWMSU to take the course.

According to the Green Flower website, there are now 20 institutes of higher education offering Green Flower courses. Leafly’s 2021 Jobs Report shows there were 428,000 full-time employees in the U.S. cannabis industry.

Missouri voters legalized cannabis for adult use during last November’s midterm elections.

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CannaCon Is Coming to Biloxi, Mississippi

1/26/2023

On February 24th and 25th, CannaCon, the nation’s leading cannabis conference and expo, will be making its Mississippi debut at the Mississippi Coast Coliseum in Biloxi.

With medical cannabis on track to hit shelves in January of 2023, CannaCon will provide a B2B venue for cannabis businesses, marijuana entrepreneurs, investors and community partners to showcase industry products, people, innovations, and technology. CannaCon will feature some of the world’s best genetics, the latest in growing and extraction products, dispensary displays, POS systems, packaging equipment, and so much more.

You will also have the opportunity to immerse yourself in learning from industry experts in the CannaCon Seminar Series, offering seminars covering cannabis industry operations, technology, and cultivation, as well as Mississippi’s hemp and cannabis laws.

In addition to two full days of seminars, CannaCon has partnered with the Mississippi Cannabis School which will be hosting The Budroom: A Dispensary Training Experience on February 24th where participants will enter a mock dispensary and be engaged in an immersive, hands-on learning experience.⁠

CannaCon will provide Mississippi cannabis businesses and enthusiasts a venue where they can shop directly from the manufacturer on our expo floor, learn from leading industry experts at our seminars, and network with thousands of like-minded individuals.

“CannaCon is the most amazing business-to-business cannabis convention of mainstream America,” said Marc Wasserman of The Pot Brothers at Law.

“The most fun you can have at a cannabis event. The best networking opportunity in the industry – by leaps and bounds,” said Thomas Warinner of MOBIUS.

Contact
Angelle Grelle | angela@cannacon.org

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Study: Cannabis Legalization Does Not Lead to Increased Use of Other Drugs

1/26/2023

Cannabis legalization had not led to an increase in substance use disorders or increased use of other illicit drugs and should not be considered a “gateway drug,” according to a study by researchers from the University of Colorado.

The study was published on January 5 in the Psychological Medicine journal.

“Recreational legalization was associated with increased cannabis use and decreased [alcohol use disorder] symptoms but was not associated with other maladaptations. … Moreover, vulnerabilities to cannabis use were not exacerbated by the legal cannabis environment.” — “Recreational cannabis legalization has had limited effects on a wide range of adult psychiatric and psychosocial outcomes,” Jan. 5, 2023, Psychological Medicine

The researchers also found no link between cannabis legalization and cognitive, psychological, social, relationship, or financial problems.

Lead author Stephanie Zellers, who began the research as a graduate student at CU Boulder’s Institute for Behavioral Genetics, told KDVR that the study’s “results are reassuring” from a public policy perspective.

“We really didn’t find any support for a lot of the harms people worry about with legalization,” she said.

Researchers from CU Boulder, the University of Colorado Anshutz Medical Campus, and the University of Minnesota used data from the Institute for Behavioral Genetics and the Minnesota Center for Twin Family Research to study 4,000 twins to conduct the research. The twins came from Colorado, which has legalized cannabis for adult use and Minnesota, where it remains illegal. The researchers found that identical twins living in states where cannabis is legal used it 20% more frequently; but when they compared results and looked at cannabis use disorder, use of alcohol and illicit drugs, and psychotic behavior, the research found no correlation to legalization.

Additionally, the study found that twins who lived in states where cannabis is legal showed fewer symptoms of alcohol use disorder.

A study published last year in the Journal of Adolescent Health came to a similar conclusion, finding that cannabis legalization did not lead to “dramatic increases in the use of alcohol, cigarettes, and non-prescribed opioids.”

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Medical Cannabis Sales Launch in Mississippi

1/26/2023

Medical cannabis sales officially launched in Mississippi on Wednesday nearly a year after Gov. Tate Reeves (R) signed the bill enacting the reforms. Voters had approved medical cannabis legalization during the 2020 election but the measure was ultimately struck down by the state Supreme Court which said the state’s ballot initiative process was outdated.

The state’s first sale occurred at The Cannabis Company in Brookhaven but did not occur without a hitch as there was a brief problem with seed-to-sale system METRC, according to a WAPT report.

In order to qualify for the state medical cannabis program, patients must get certified by a participating physician, nurse practitioner, or optometrist and register with the state. Within 60 days of certification, patients must apply to the program using an online form. They will then receive an electronic identification card that can be used at dispensaries. Mississippi’s rules allow patients to purchase 3.5 grams per day, six days a week, or about 3 ounces per month.

There are 25 qualifying conditions included on the state’s medical cannabis list.

Currently, there are about 1,700 patients registered as medical cannabis patients in the state, according to Department of Health data outlined by WLOX.

According to health department data, there have been more than 160 cannabis dispensary licenses issued so far.

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New York Committee Says Office of Cannabis Management Not Following Open Meetings Law

1/26/2023

New York’s Committee on Open Government last week issued an advisory opinion outlining concerns that the Office of Cannabis Management (OCM) is not following the state’s open meeting rules. The committee pointed to two OCM meetings for which notice was provided less than a week in advance.

The opinion was issued at the request of Tim Mitchell, a medical cannabis patient, who was concerned about OCM and Dormitory Authority public meeting practices.

The opinion was first reported by Syracuse.com.

One meeting was focused on the OCM’s consideration of a “Limited Partnership Agreement (LPA) to be entered into the New York Social Equity Cannabis Investment Fund L.P” which the agency said, “was a time-sensitive matter.” The other, also scheduled less than a week in advance, was to discuss “recent developments in pending litigation and employee related matters.”

“Ultimately, whether the circumstances justify a public body scheduling a meeting less than one week in advance and upon less than seventy-two hours of notice is a fact specific determination that can only appropriately be made by the judiciary.” — Committee on Open Government, Jan. 20, 2023

The committee also points to a December meeting where OCM members entered into an executive session – which allows them to meet out of public view – but no reason was given by OCM members to enter the session.

“…As such, the motion failed to inform the public that the topic or topics for discussion in such session fell under one of the enumerated grounds for entry into an executive session,” the committee said in the report.

Mitchell, in an interview with Syracuse.com, described the committee’s response as “good” and that the board “acknowledged that some things didn’t happen the way they probably should have.”

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Avaans Adds Even More Value to Its Cannabis PR Sprints

1/25/2023

Avaans Media Celebrates 420 with Two Cannabis Industry Offerings

JANUARY 18, 2023 (Los Angeles) – Avaans Media, one of the country’s leading cannabis PR firms, is once again offering PR Sprints – micro contracts for consumer products – for the spring and early summer months.

The program also includes inclusion into the newly launched Avaans Gift Guide, which is a free marketing listing for the cannabis industry, which will be shared throughout the spring season with cannabis influencers and cannabis journalists.

“420 is more than a day for the cannabis industry, it’s really the kickoff of the summer season, with it’s concerts, beach gatherings, and easy evenings with friends,” said Tara Coomans, CEO of Avaans Media.

PR Sprints are notable for two reasons. First, the contract length is considerably shorter than the typical PR contract and can save brands over 80% on an annual contract. Second, there are a limited number of seats available in each cohort.

“We can offer this unheard-of flexibility during certain times of the year, and only to a select number of clients,” continued Coomans.

Avaans’ PR Sprints are perfect for new-to-market products and regions like the east coast to get on the radar of national journalists.

“This is really an exciting year for cannabis brands – from Los Angeles to Long Island, we’re seeing diversity in cannabis founders like never before, and they’re creating innovative brands from cannabis beverages to D8 products, and everything in between,” said Coomans.

Cannabis consumer products can learn more here: https://avaansmedia.com/contact-us/cannabis-consumer-product-pr-sprint/

About Avaans
Avaans is the blending of Coomans’ digital communications agency and cannabis PR agency, Primo PR. Today Avaans Media offers digitally savvy bespoke PR for emerging industries, including cannabis, from startup through IPO. Avaans clients are highly regarded and ambitious and include consumer tech, CPG or DTC brands. Avaans Media successes, along with award-winning team members has allowed Avaans to become one of the top PR agencies in the country.

Media Contacts
press@avaansmedia.com

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FDA Releases Final Guidance for Cannabis Pharmaceutical Research

1/25/2023

The federal Food and Drug Administration (FDA) on Tuesday released its proposed final guidance on research related to the development of human drugs containing cannabis or cannabis-derived compounds. The guidance would allow researchers to use hemp products derived from any source if deemed “of adequate quality” by the FDA but would not allow THC-rich cannabis from any source, requiring only products from sources authorized by the Drug Enforcement Administration (DEA).

Under federal law, hemp products must contain less than 0.3% THC.

After decades of allowing cannabis for research purposes to be grown at only one site – the University of Mississippi’s National Center for Natural Products Research – the DEA opened up applications for new growers in 2020. In all, there are now seven “Bulk Manufacturer Marihuana Growers” approved by the DEA.

According to the guidance document, cannabis and cannabis-derived compounds would be held to the “same regulatory standards as any other botanical raw material, botanical drug substance, or botanical drug product” and researchers would have to follow the agency’s 2016 guidance for Botanical Drug Development.

The FDA notes the guidance “does not address development of fully synthetic versions of substances that occur in cannabis, sometimes known as cannabis-related compounds (e.g., dronabinol), which are regulated like other fully synthetic drugs.”

The guidance is still in the public comment period and must complete that process before becoming policy.

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Real Estate Developer Suing Pontiac, Michigan Over Failure to Enact Cannabis Rules

1/25/2023

The city of Pontiac, Michigan and its clerk are being sued by a real estate developer due to the delays made by officials in enacting cannabis rules, the Oakland Press reports. Rubicon Real Estate Holdings and Joseph Brown, of Brown Design Consultants, are seeking $60 million claiming the city’s delays are responsible for Rubicon’s lender withholding $45 million in loans needed to rehabilitate seven parcels in Pontiac.

Pontiac voters in 2018 voted to allow cannabis businesses to operate – by a single vote – the Morning Sun reports, but city officials have subsequently dragged out the permitting process.

As part of the property purchase agreement, Rubicon agreed to submit plans and applications for a cannabis license. To finance the renovations, Rubicon negotiated leases for the new space with several companies, including two cannabis businesses, Family Rootz and Pharmaco. According to the lawsuit outlined by the Press, Pharmaco’s 15-year lease is worth between an estimated $37.5 million in rent while Family Rootz’s lease is worth between $9 million and $12 million over three years for two properties.

In 2021, Sixth Circuit Judge Yasmine Poles ordered the city to approve all the pending permits related to the redevelopment and allow Rubicon and its tenants to move forward, the report says. Her ruling notes that the case was not considered closed and the recent lawsuit is based on Poles’ opinion.

The lawsuit also claims that the city acted punitively toward Brown, who had been involved in a separate lawsuit in 2021 that ended in a judgment against the city.

The attorney for Rubicon and Brown, Cindy Victor, is asking for a jury trial.

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NYC College Partners With Cannabis Union for Industry Fundamentals Course

1/25/2023

Manhattan’s LIM College is partnering with the Association of Cannabis Workers (ACW) Local Union 420 to offer a four-week, online Cannabis Industry Fundamentals course for ACW members. LIM College is the first college in the nation to offer Bachelor of Business Administration and Master of Professional Studies degrees in the Business of Cannabis.

The course is expected to begin in early March and cover the history and current state of the cannabis industry, career paths in cannabis, and marketing cannabis products. The course will also help students to understand consumers, regulations, compliance, and supply chain considerations, the college said in a press release. The program will be taught by Michael Zaytsev, an industry expert and academic director of cannabis degree programs at LIM College.

“The cannabis industry needs graduates who can hit the ground running with in-depth knowledge of the unique nature of the business. LIM is leading the way in readying students who will have cannabis-specific knowledge and credentials in hand, putting them head and shoulders above others entering the industry. We are very pleased to collaborate with ACW Local 420 to offer this opportunity to its members.” — Zaytsev in a statement

Course participants will also be invited to on-campus LIM College events and virtual sessions where they can network with potential employers and others who share their interest in the cannabis industry.

In a statement, ACW Local 420 President Josh Gottlieb described the course as “a great first step on a career path that is expected to provide tremendous opportunities.”

“LIM College is a pioneer in cannabis education,” he said, “and our decision to collaborate with them will help us ensure that ACW Local 420 members have access to the cannabis industry’s best training, jobs, and wages.”

Course tuition is $750, and LIM College will provide a certificate of completion for students who complete the course.

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Working With, Not Against, IRS Revenue Code 280E

1/25/2023

Editor’s note: This editorial was contributed by Faith Bygd, advisor for Breakaway Bookkeeping & Advising.

Being a legal cannabis company, you are likely familiar with the IRS Tax Code 280E. This tax code sets forth financial hurdles directly related to the amount of tax liability you owe the government at the end of the year.

From cultivators to retail shop owners, medical, or adult-use, 280E places financial struggles on legal businesses. The limitations around what the IRS will allow you to recognize as legitimate business write-offs are unclear and present significant problems to those owning companies in the cannabis industry.

While non-cannabis businesses can write off any expense that goes into the cost of running the company, this is not the case for cannabis businesses. We need to get used to it: this will remain in effect until cannabis is no longer federally classified as a Schedule 1 Illegal Substance. Brass tacks: The federal government still views cannabis as “illegal” and any business that sells it as trafficking — even though individual states have voted to legalize it. The federal government is not in the business of helping to sell illegal substances… but they are in the business of taxation. Cannabis businesses can stay in business — if they play along.

Why is 280E so confusing? For historical context, the reason 280E exists is due to the monumental case of Edmondson v. Commissioner. In 1981, a convicted drug dealer, Jeffery Edmondson, was fined and held liable for back taxes owed on the money he made from illegally selling cocaine, amphetamines, and marijuana. He brilliantly filed returns for the years he was being held accountable for and applied write-offs, including the costs of the drugs themselves, to reduce the amount of tax liability he had, which in turn reduced his interest and fines due. The court determined he was allowed to do so because, as the law was written, that was a legal approach to the tax burden. The IRS quickly reacted with the enactment of Tax Code 280E, passed into law in 1982. The new law would disallow write-offs to be applied to the total revenue if the revenue was created through federally illegal activity.

Currently, cannabis still sits on the list of Schedule 1 Illegal Substances, which is in the same category as harmful substances such as meth, heroin, and ecstasy. Marijuana is the only substance on the list that is legal in 39 states. But until it is recognized as legal by the federal government, 280E’s frustration will remain a daunting reality.

Have no fear! There is a way to work with the 280E instead of against it!

280E allows cannabis companies to deduct expenses that it has to produce the product for sale, just not any cost related to the sale itself. Expenses that are 100% direct in the production of your product are considered COGS, meaning cost-of-goods-sold. COGS are deductible.

How can you put this into practice? Scrutinize your bookkeeping and accounting workflows by creating a tight cannabis-friendly chart of accounts. Be sure to include all acceptable COGS above the gross revenue line. Anything below the gross revenue line will be taxed federally, but your state may allow you to deduct these expenses from your state income tax.

Let’s dive a little deeper into how this breaks down:

Grow equipment/supplies/materials. These expenses are direct and 100% used for the process of creating your product and are considered tax deductible from your total revenue.

Repairs and maintenance directly related to the grow buildings. Contractors that perform services directly related to the grow or production space will count towards the COGS amount.

Wages for cultivation and production. Keep meticulous records of employee hour breakdowns and record payroll on your books by these breakdowns. Make sure your books match the payroll records in case of an audit. Talk to your tax CPA about filing as a S-Corp to include the owner’s wages in the payroll. In most non-cannabis businesses, the owners’ wages are considered admin (below the gross revenue line). However, cannabis owners working directly with the cultivation can possibly apply some of their wages to the allocations of COGS. Discuss this with your tax preparer and bookkeeper to devise a good plan.

Utilities directly related to the grow or production areas. Utilities used in retail or office space are not deductible. Ask your tax CPA about the best workflow to separate out your utility bill. Your monthly bookkeeper should be tracking the bill splits to ensure a constant clear picture of where your financials stand from month to month.

The biggest secret weapon to working with 280E is finding a financial partner who can help you track these expenses as they are incurred. This does not mean scraping together a handful of receipts at the end of the year. A stellar bookkeeper is imperative to your cannabis’s business success. A bookkeeper who knows the importance of breaking down COGS is a necessity.

Currently, the IRS has been lenient about auditing cannabis companies, but that will not be the case for long. If your company is audited, they can go back 3-6 years. Do you have those books in order? Let it be your 2023 New Year’s Resolution to organize your accounting. This will aid in the success and longevity of all of your hard work and efforts and help you work with 280E.

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Report: Cannabis Market Could Grow to $48B by 2027

1/24/2023

A new report by Emergen Research suggests the global cannabis market could grow to $48.29 billion by 2027, representing a CAGR of 24.6%. Emergen said in 2019, the market was worth $8.26 billion.

“Proven medical effects of cannabis, legalization, active research genetic development and modification of the plant, and developments in cannabis intellectual property rights have all been recognized as cannabis market drivers. The market is dominated by North America. Because cannabis is widely utilized for therapeutic purposes in the United States, the industry has evolved and matured tremendously. Cannabis, as a psychoactive drug, continues to be popular among recreational and medicinal users in the United States.” — Emergen in a press release

The report notes that the North American duo of the U.S. and Canada currently “dominates” the market. Cannabis is legal in Canada and individual U.S. states and territories have legalized cannabis for either adult or medical use. Emergen suggests that the Asia Pacific region will account for the fastest growth through 2027 but notes that many European nations have begun to liberalize their cannabis laws; including Germany, which legalized medical cannabis in 2017, and France which legalized medical cannabis use in 2013 and five years later reduced penalties for possession.

Italy also legalized medical cannabis use in 2013 and has effectively decriminalized personal possession, while the United Kingdom legalized some medical cannabis products in 2018.

Emergen notes that industry market trends include the infusion of both alcoholic and non-alcoholic beverages and “tremendous demand from the therapeutic market.”

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California Cannabis Company Files RICO Lawsuit Against City and Former Officials

1/24/2023

A California cannabis company is suing the city of Baldwin Park and several officials under the federal Racketeer Influenced and Corrupt Organizations Act, or RICO, alleging that the city’s rollout of retail cannabis was rigged to benefit the officials and their allies, the San Gabriel Valley Tribune reports. The lawsuit appears to be the first of its kind – a cannabis company suing government officials under RICO.

The federal lawsuit, filed on January 18 by David Ju, names Baldwin Park, former City Attorney Robert Tafoya, former Deputy City Attorney Anthony Willoughby II, former Councilmember Ricardo Pacheco, former Compton Councilmember Isaac Galvan, former Baldwin Park Mayor Manny Lozano, and former Chief Deputy Cty Clerk Lourdes Morales as defendants.

In the lawsuit, attorney David Torres-Siegrist alleges the defendants “acted in concert to orchestrate a swindle on an elderly man dying of cancer who poured his life savings into a venture that was destined for failure from the get-go and nothing more than a collusive scheme marred by bribery and corruption.”

“Plaintiffs allege that the pattern has been one of racketeering activity involving multiple criminal acts, including but not limited to, bribery, kickbacks and other improper relationships throughout the application and granting process, as well as defrauding individuals, such as plaintiffs, through the use and abuse of their positions within the city.” — Torres-Siegrist, in the lawsuit, via the Tribune.

In 2020, the Federal Bureau of Investigation executed search warrants at Tafoya’s office and at the homes of Galvan and San Bernardino County Planning Commissioner Gabriel Chavez as part of a cannabis-related corruption inquiry. Chavez agreed to a plea deal last October on federal bribery charges and agreed to work with authorities, according to a Pasadena Star News report.

Pacheco ultimately agreed to a plea deal with federal investigators where he claimed under penalty of perjury that Galvan and Tafoya were involved in his efforts to solicit bribes from cannabis companies looking to operate in Baldwin Park, the Tribune reports.

Ju’s lawsuit alleges that Willoughby II paid less than $40,000 to obtain the development agreement for cannabis company Tier One and then sold it to Ju for “hundreds of thousands of dollars” and paid Galvan $50,000. Tier One had received approval to operate in the city but was unable to move forward because Baldwin Park’s cannabis ordinance prohibited ownership transfers of cannabis firms.

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Maryland Gov. Releases Funds Withheld by Predecessor to Help Adult-Use Cannabis Rollout

1/24/2023

Maryland’s new governor last week, on his first full day in office, released $46.5 million related to the state’s Cannabis Reform Act, which will support its forthcoming adult-use cannabis industry, Maryland Matters reports. The funding had been withheld by the previous administration.

Gov. Wes Moore (D) said releasing the funds marked “a fundamental shift on how the governor’s office is going to approach the budget and the office’s relationship with the General Assembly.” In all, Moore released $69 million in funds related to a variety of projects that had been withheld by former Gov. Larry Hogan (R).

Of the $46.5 million in cannabis funds, $40 million is earmarked for a Cannabis Business Assistance Fund in the Department of Commerce to support the rollout of the adult-use cannabis industry, $5 million is set for the Cannabis Public Health Fund in the Department of Health, which could be used to fund research on cannabis legalization or for substance abuse treatment, and $1.5 million is earmarked for the Criminal Justice Information System to comply with provisions of the act, including automatic expungement of prior simple possession cases.

Maryland’s adult-use cannabis industry could be worth $1 billion in about two years, according to Cannabis Public Policy Consulting data outlined by Maryland Matters. Adult-use cannabis sales in Maryland are expected to commence on July 1.

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Nevada Regulators Warn of Unapproved Pesticide Use Affecting Hundreds of Products

1/23/2023

Nevada officials last week issued a bulletin warning about the use of unapproved pesticides on products harvested by Clark Natural Medicinal Solutions between July 23, 2021, and January 5, 2023.

The affected product list includes 118 edible products, ranging from gummies to chocolate bars, to the brand’s vegan products; 42 infused pre-rolls; and 222 concentrates, including vape cartridges. The products are carried at 105 dispensaries throughout the state, according to Cannabis Compliance Board (CCB) data. Sales of the products occurred between August 31, 2021, through January 9, 2023.

The CCB is advising customers to avoid the products and noted that the pesticide in question, Ethephon, is not on the list of pesticides that testing facilities must test for, and their test methods are not set up for the detection of Ethephon.

“There is no reason to believe the cannabis sales facilities or cannabis testing facilities had any knowledge of the use of this unapproved pesticide.” — CCB, Public Health and Safety Bulletin 2023-01

The notice is the first of 2023 for Nevada regulators. The CCB issued two health and safety bulletins last year; three in 2021, and one in 2020. There have been no adverse effects reported by consumers associated with the Clark products.

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Second Rec Center Funded by Cannabis Taxes Opens in Aurora, Colorado

1/23/2023

Officials in Aurora, Colorado on Tuesday will hold a grand opening ceremony for a recreation center funded by cannabis taxes, KDVR reports. The Southeast Recreation Center and Fieldhouse, which opened last week, cost $42 million, which was provided through adult-use cannabis sales taxes.

Parks, Recreation and Open Space Director Brooke Bell said feedback from the community “guided the creation” of the “exceptional facility.” The center includes a public art installation created by Adam Buente of Project One Studio.

The center includes an indoor fieldhouse, full-sized professional-grade turf field, multi-use gymnasium, 1/9-mile long track, fitness area, and natatorium which includes a swimming pool, spa pool, and leisure pool.

It is the fifth full-service recreation center in the city, Erin Pulliam of the City of Aurora Special Events told KDVR, and is the second to be fully funded by cannabis taxes. Pulliam said the Central Recreational Center that opened in 2019 cost $30 million and was also funded by cannabis tax revenues.

In 2021, the Aurora City Council increased the city’s tax on adult-use cannabis sales from 7.75% to 8.75%, according to a Westword report. Additional revenues are used to fund youth violence prevention projects.

The state of Colorado collects an additional 15% sales tax on licensed cannabis sales.

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Study: Demand for Codeine Drops When Adult-Use Cannabis Is Legalized

1/20/2023

A new study from researchers at Cornell University, the University of Pittsburgh, University of Georgia, and George Mason University found states that have legalized cannabis for adult use see a reduction in demand for prescription codeine. The study, published Thursday in journal Health Economics, found A 26% reduction in pharmacy-based distribution of codeine and as much as a 37% reduction after adult-use cannabis laws have been in effect for four years.

The researchers note the adult-use cannabis laws had a minimal impact on codeine distribution by hospitals, which often have less permissive policies than pharmacies, and a minimal impact on distribution of other opioids such as oxycodone, hydrocodone, and morphine in any setting.

Coleman Drake of the University of Pittsburgh’s School of Public Health and the study’s senior author, called the study’s results “particularly meaningful” because “previous studies have focused on more potent opioids.”

“…Codeine is a weaker drug with a higher potential for addiction. It indicates people may be obtaining codeine from pharmacies for misuse, and that recreational cannabis laws reduce this illicit demand.” — Drake in a statement

Johanna Catherine Maclean, of George Mason University and author of the study, said the research suggests “Increasing legal access to cannabis may shift some consumers away from opioids and toward cannabis.”

“While all substances have some risks,” she said in a statement, “cannabis use is arguably less harmful to health than the nonmedical use of prescription opioids.”

The researchers analyzed data from the Drug Enforcement Administration’s Automation of Reports and Consolidation Orders System which tracks the flow of controlled substances in the U.S.

The study was supported by the National Institute on Drug Abuse of the National Institutes of Health.

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Second New York Dispensary Coming to Manhattan Next Week

1/20/2023

The first New York dispensary owned by a social equity applicant opens next Tuesday in Manhattan. The dispensary, called Smacked LLC, will be owned and operated by Roland Conner with a soft opening as a “pop-up” from January 24 through February 20.

New York’s social equity program prioritizes providing cannabis licenses to justice-involved individuals – people with a cannabis conviction or a close relative of someone with one.

Conner previously owned and operated property management businesses in New York City for 15 years and currently manages a transitional housing facility providing shelter for two dozen men in the Bronx.

“I am so excited to become a part of history as the first individual to open a legal cannabis dispensary in New York City. Given my experience with cannabis, I never could have imagined that I would be opening a store like this. I’m grateful for the opportunity to open a business with my son and wife at my side and build generational wealth, working together, right here in New York. But this is not just about me and my family. This is about everyone who was harmed by the draconian drug laws of the past. New York’s commitment to righting those wrongs through the law is inspiring. I am proof of that commitment because I’m standing here today.” — Connor in a press release

In a statement, Gov. Kathy Hochul (D) said the shop is the latest example of the state’s efforts “to build the most equitable and inclusive cannabis industry in the nation.”

Tremaine Wright, chair of the Cannabis Control Board, said dispensaries with ownership like Smacked’s exemplify the state’s “nation-leading model for establishing an equitable cannabis industry that works to offset the harms caused by the disproportionate enforcement of cannabis prohibition.”

The business is partly supported by the state’s Social Equity Cannabis Investment Fund which is working with the Social Equity Servicing Corporation, a subsidiary of the Dormitory Authority of the State of New York, to support the acquisition, design, construction, and outfitting of locations for cannabis dispensaries to be operated by conditional adult-use retail dispensary licensees.

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Tennessee Bill Seeks Non-Binding Ballot Question to Ask Voters Whether They Support Cannabis Reforms

1/20/2023

A bill introduced in Tennessee would add three cannabis-related questions to 2024 ballots, WKRN reports. The measure, introduced by Democrat Rep. Jesse Chism, would be non-binding and serve to gauge public interest in the medical and adult-use legalization and decriminalization of small amounts of cannabis.

The questions that would be put to voters are:

Should the State of Tennessee legalize medical marijuana?
Should the State of Tennessee decriminalize possession of less than one ounce (1 oz.) of marijuana?
Should the State of Tennessee legalize and regulate commercial sales of recreational use marijuana?

The measure would require the Secretary of State to send the poll results to each member of the state General Assembly.

A previous attempt by former Rep. Bruce Griffey to add the same questions to 2022 ballots was unsuccessful.

Two bills have been introduced already this session in Tennessee, the report says. Rep. Bob Freeman (D) and Sen. Heidi Campbell (D) introduced the “Free All Cannabis for Tennesseans,” Chism also introduced the “Tennessee Medical Cannabis Act.”

In previous years, Tennessee lawmakers have not moved a medical cannabis proposal out of committee, save for a very limited medical cannabis bill in 2021. That measure did not become law.

A 2019 Power Poll, conducted by the Chattanooga Free Press, found 88% of respondents support some form of cannabis legalization.

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Advocates Renew Push to Add Autism to Ohio Medical Cannabis Program

1/19/2023

Citizens in Ohio are, again, pushing for the State Medical Board to add autism spectrum disorder to the state’s medical cannabis qualifying conditions list, Cleveland.com reports. It’s the third consecutive year the public has pressed for autism to be added to the list; they were denied in 2021 and 2022.

The renewed request comes as state lawmakers are considering a bill that would add autism to the list. Last year, the state House Health Committee approved a measure to make the change but it didn’t make it to the floor for a vote.

The state Senate is considering its own measure that would not only add autism to the medical cannabis qualifying list but would also take medical cannabis oversight out of the purview of the Medical Board. That proposal would create a Division of Marijuana Control.

State lawmakers are also considering an initiated statute proposal that would put a broad cannabis legalization question to voters if lawmakers don’t pass the legalization bill themselves. Lawmakers have until April to pass the reforms, or the question will be put to voters in November.

Since the launch of the state medical cannabis program, the Medical Board has added just four new qualifying conditions: cachexia in 2020 and Huntington’s disease, spasticity, and terminal illness in 2021, the report says.

Members of the public are also petitioning the board to add bipolar 2, chronic migraines, uterine cancer, anxiety, irritable bowel syndrome, obsessive-compulsive disorder, and degenerative disc disorder. Currently, the state’s list of qualifying conditions for the medical cannabis program includes 25 conditions.

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Washington Announces Cannabis Social Equity Application Window

1/19/2023

The Washington State Liquor and Cannabis Board (LCB) announced this week that the application window for cannabis social equity licenses will begin on March 1 and will continue for 30 days. Applicants will have until March 30 at 5:00 pm to complete and file their applications.

Under Washington’s cannabis social equity program, regulators are making available “44 retail licenses that were forfeited, canceled, revoked, or never issued.” The licenses “will be available in jurisdictions across the state,” the agency announced in an email.

In order to qualify for one of the licenses, applicants must have lived in Washington state for at least six months before submitting their application, and must satisfy at least two of the following requirements:

The applicant must have lived in a disproportionately impacted area for at least five years between 1980 and 2010.
The applicant or a family member of the applicant must have been arrested for, or convicted of, a cannabis-related offense.
The applicant’s household income in the year before applying must have been less than the median household income within Washington state ($82,400).

LCB also announced upcoming webinars on January 24 and January 28 that will help social equity applicants navigate the licensing process and acquire necessary documentation.

The agency is also coordinating additional tools for would-be applicants including free educational programs covering “an introduction to business concepts such as financing, marketing, taxes and business planning,” as well as a roster of mentors via the Department of Commerce which will support early-stage entrepreneurs in their pursuit of starting a cannabis business.

Interested parties should visit the social equity section of the LCB website to learn more about the program’s qualifications and to get started on the application process, the agency said.

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