Washington Bill Would Create New Social Equity Cannabis Licenses

3/20/2023

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A bill proposed in Washington state would add about 100 retail adult-use cannabis dispensary licenses which would be set aside for social equity applicants, KING 5 reports. The measure is backed by the state Liquor and Cannabis Board (LCB) which recently reported that 92% of cannabis license holders in the state are White and just 4% of retail cannabis licenses went to Black applicants.  

The measure is sponsored by State Sen. Rebecca Saldaña (D) who told KING 5 that the state’s cannabis program “really set it up so that the people that can participate were people that had deep pockets or access to a lot of money” and that officials weren’t going to add any new licenses until they “looked at social equity.”  

Under the measure, the licenses could be used in any Washington city or county that allows adult-use cannabis sales. The new licenses could be used for retail sales or retail cultivation. 

“Once they get the license, they have a time period to be able to find the location, because otherwise you’re paying rent, trying to build it out, and not making any income during that time period. So this gives them a chance to have a little bit more flexibility.” — Saldaña to KING 5 

Even without the passage of the bill, social equity applicants will get priority for about 40 licenses that remain unused or were revoked by the LCB under guidance issued by the agency last year. However, many of those license are in jurisdictions that do not allow adult-use sales within their borders, the report says. The LCB also changed the scoring rubric for cannabis license candidates, giving more weight to applicants with prior drug arrests, or those who previously owned a medical cannabis dispensary. 

On March 1, the LCB opened a 30-day window for social equity applicants to submit their applications for unused or revoked licenses. 

 

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SEC Charges Cannabis Company and CEO with Fraud

3/17/2023

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The U.S. Securities and Exchange Commission (SEC) on Thursday charged cannabis cultivation and distribution company American Patriot Brands (APB), its chief executive officer Robert Y. Lee, and five other entities and individuals with fraud. The agency also charged current and former executives Brian L. Pallas and J. Bernard Rice and APB subsidiaries DJ&S Property #1 LLC, TSL Distribution LLC, and Urban Pharms LLC.

The SEC alleges in the complaint that the defendants raised more than $30 million from more than 100 investors and enriched themselves by funneling the money into their personal accounts and spending tens of thousands of dollars on executives’ personal expenses.  

The SEC claims Lee, Pallas, and Rice, since at least mid-2016, made false and misleading statements to investors about various aspects of APB, including its financial condition, the scope of its operations, the value of its Oregon cannabis farm, and the safety and security of investing in the company. 

In a statement, Carolyn M. Welshhans, associate director of the SEC’s Enforcement Division, said “American Patriot Brands Inc. and some of its senior executives fabricated business profits and prospects to entice investors with falsehoods that in the end left investors with essentially worthless securities.”  

The complaint charges APB, Lee, Pallas, Rice, DJ&S Property #1 LLC, TSL Distribution LLC, and Urban Pharms LLC with violating the antifraud provisions of the federal securities laws. The lawsuit seeks permanent injunctive relief, disgorgement with prejudgment interest, civil penalties, and officer and director bars against Lee, Pallas, and Rice.

The complaint names as relief defendants, and seeks disgorgement with prejudgment interest from, three affiliated entities – Legion Accounting Services, Inc., Puerto Rico One Corp., and Castro Business Enterprises LLC – that allegedly received millions in investor proceeds. 

The complaint was filed in the United States District Court for the District of Puerto Rico.  

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Kentucky Senate Passes Medical Cannabis Bill

3/17/2023

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The Kentucky Senate on Thursday passed a medical cannabis bill on a 26-11 vote, WYMT reports. The legislation moves next to the House, which has passed medical cannabis reforms in previous sessions but they ultimately died in the Senate.  

The measure would not allow patients to access smokable products but permits edibles and concentrates. If approved by the Senate and signed into law by Gov. Andy Beshear (D), the bill would take effect on January 1.  

Beshear, who made medical cannabis legalization a legislative priority, is expected to sign the measure if it reaches his desk. Last year, via executive order, the governor legalized the possession of cannabis by some individuals suffering from severe medical conditions. Those reforms took effect on January 1, allowing individuals with a medical provider’s statement to possess up to eight ounces of cannabis for medical purposes if purchased legally in another state.    

The bill passed the Senate Licensing and Occupations Committee on Tuesday. The committee added one amendment to the bill, allowing employers to “conduct assessments of impairment of an employee” with a medical cannabis card.  

The House is expected to consider the measure later this month when lawmakers reconvene for the final two days of this year’s legislative session.  

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New York Sued Over Social Equity Cannabis Retail Licensing Plan

3/17/2023

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A group that includes some of New York’s medical cannabis companies is suing the state over its plan to issue adult-use retail cannabis licenses to social equity applicants before opening applications to all businesses, Syracuse.com reports. The complaint alleges unconstitutional overreach and policymaking, egregious abdication of duties, and actions that put citizens’ health and safety at risk. 

The lawsuit was filed by the Coalition for Access to Regulated & Safe Cannabis which describes itself as “an unincorporated trade association.” The group includes Acreage Holdings, PharmaCann, Green Thumb Industries, and Curaleaf – all of which hold medical cannabis licenses in the state but are not permitted, yet, to apply for retail licenses as the state has so far only allowed what it considers social equity applicants to seek those licenses.  

The group also includes two hopeful dispensary owners and a medical cannabis practitioner in Westchester.      

The complaint argues that the state’s legalization law required the Office of Cannabis Management (OCM) and Cannabis Control Board (CCB) to open “the initial adult-use retail dispensary license application period … for all applicants at the same time” and that the agencies created the Conditional Adult-Use Retail Dispensary (CAURD) program, which introduced a new license class separate from what legislators outlined in the legalization law and then only allowed license opportunities to a specific group. 

The lawsuit claims the agencies “improperly assumed the role of the Legislature to impose their own policies over those of New York’s elected officials and, by extension, their constituents.” 

Earlier this month, New York regulators doubled the number of available adult-use retail licenses in the state from 150 to 300. However, a report issued last month by by MPG Consulting concluded that if the state does not get retail cannabis businesses licensed soon, it could cost the state $2.6 billion in related tax revenues over eight years. The report was prepared by the firm for Acreage Holdings. 

The lawsuit is filed in Albany County Supreme Court.  

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Report: New York’s Slow Licensing Process Could Cost State $2.6B Over 8 Years

3/16/2023

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A report authored last month by MPG Consulting suggests that if New York state does not get cannabis businesses licensed soon, it could cost the state $2.6 billion in related tax revenues over eight years. The report was prepared by the firm for multistate cannabis operator Acreage Holdings. 

So far, New York has just 36 dispensaries projected to open this year and has so far issued more than 280 conditional cultivation licenses to existing hemp businesses in the state. 

“New York is unnecessarily creating a retail bottleneck,” the report says, “slowing illicit market absorption.” 

The report suggests that the slow rollout of legal cannabusinesses in the state will lead to unlicensed market operators capturing $7.2 billion in revenue between 2023 and 2030 and cost 20,600 direct cannabis and ancillary jobs per year. 

“Licensing is increasingly becoming a chokepoint,” the report says, noting that “building and operating compliant retail and cultivation operations takes time, money, and experience.”  

MPG says that compliant businesses need $1 million to $5 million in initial capital including property acquisition, facility improvements, operating procedure development, and initial inventory sourcing. Businesses also require nine months to a year for dispensary entitlements, inspections, permitting, and hiring. 

The report suggests that “there needs to be 900 retail outlets across the state to provide sufficient market access” and that compliant cultivation facilities with between 20,000 to 50,000 square feet of canopy require $5 million to $20 million in initial capital. Additionally, it would take cultivation businesses 18 months to two years from facility development to first finished product, according to the report. 

“MPG estimates indicate 6 million sq. ft. of canopy needed to meet demand. The state has committed $50 million towards industry infrastructure development, with an unfunded objective of raising an additional $150 million from investors. That may be enough for just 20 dispensaries.” — MPG Consulting, “New York Illicit Cannabis Market Absorption Analysis,” Feb. 12, 2023 

The report suggests that if current registered medical cannabis operators in the state are allowed to convert to adult-use sales, illicit sales will be absorbed fastest. In that scenario, from 2023-2030, regulated sales would comprise $35.4 billion of the state market, with illicit sales comprising $9.9 billion of the market. The analysis suggests another scenario would be to phase in registered operators, which would lead to a $30.3 billion regulated market and a $15 billion unregulated market. Were the state to exclude registered operators entirely, illicit sales would comprise $17.1 billion of the market, while regulated sales would comprise $28.2 billion.

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Texas House Committee Considers Raising THC Limits for Medical Cannabis Products

3/16/2023

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The Texas House Public Health Committee on Monday heard hearings on a bill that would expand the state’s medical cannabis program, FOX 44 reports. The measure would allow access to products with THC levels as high as 5%. Under current law, patients can only access low-THC products with THC concentrations up to 1%. 

The measure is, in part, meant to reign in the proliferation of hemp-derived THC products, such as delta-8, which some medical cannabis consumers are relying on because of the low THC limits in the state’s medical cannabis program. Delta-8 THC products are unregulated in the state, while delta-9 products are on the state’s controlled substance schedule. 

David Urbanowicz, vice president of external affairs for seed-to-sale tracking company Metrc, told FOX 44 that “there’s no safeguard in place” for delta-8 products.  

“What we’re talking about with the medical program is Delta-9, and that is all very heavily regulated. Typically, states will require third party tests. It has to pass those tests in order to wait for it to reach the consumer. So again, that is much, much safer, much more well regulated typically.” — Urbanowicz to FOX 44 

The bill was left pending in the committee on Monday. The bill has an identical companion in the Senate; however, that measure has not been sent to any of the chamber’s committees. 

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Minnesota Lawmakers Consider & Adjust Adult-Use Cannabis Proposals

3/16/2023

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House and Senate committees in Minnesota on Tuesday each altered adult-use cannabis legalization bills being considered by lawmakers, with the House Transportation Finance Committee tacking on an amendment to reduce the amount of cannabis individuals can keep in their homes from 5 pounds to 1.5 pounds, ABC 6 News reports. 

The Senate State and Local Government committee adopted a 142-page amendment to create distinctions between the industrial hemp industry and the adult-use cannabis industry.  

Ted Galaty, a hemp farmer and owner of Willow’s Keep Farm, told Senate lawmakers during the hearing that hemp farmers would “suffer” if lawmakers “ram” the bill through without creating separate rules for hemp and adult-use cannabis. 

State Rep. Zack Stephenson (D), the bill author, told the House committee that he would accept their amendment to reduce the amount of cannabis adults can have at home when it reaches the Commerce Committee and would encourage his colleagues to also accept the changes.   

The measure still has several committee stops before making it to the floor of either chamber for a vote.  

During the midterm elections, Democrats took control over both chambers of the state legislature and Stephenson has blamed Republicans for blocking the reforms in previous sessions. Gov. Tim Walz (D) said in January that he was “ready” to sign an adult-use cannabis bill into law.  

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UN Drug Board Criticizes Nations for Cannabis Legalization

3/15/2023

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In its 2022 Annual Report, the United Nations’ International Narcotics Board (INCB) criticized global cannabis legalization reforms, saying legalization “is leading to higher consumption, negative health effects and psychotic disorders.” 

The report claims that cannabis legalization leads to higher use rates among teens and young adults and that “general availability of legalized cannabis products lowers the perception of risk and of the negative consequences involved in using them.” 

“The expanding cannabis industry is marketing cannabis-related products to appeal to young people,” INCB President Jagjit Pavadia said in a statement, “and this is a major cause for concern as is the way the harms associated with using high-potency cannabis products are being played down.” 

The INCB also claims that in all jurisdictions where cannabis has been legalized, cannabis-related health problems have increased. The report suggests that between 2000 and 2018, global medical admissions related to cannabis dependence and withdrawal increased eight-fold while admissions for cannabis-related psychotic disorders have quadrupled worldwide. 

The body further claims that governments’ objectives in legalizing cannabis – to reduce criminal activities and increase public health and safety – have not been achieved, suggesting that in Canada, 40% of the market is illegal cannabis, 50% in Uruguay, and 75% in California.  

The board notes that adult-use cannabis legalization violates drug conventions and suggests those conventions “offer significant flexibility” for “governments looking for alternative solutions regarding cannabis offenses.”  

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Michigan Cannabis Flower Price Drops to $80 Per Ounce

3/15/2023

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Cannabis flower prices per ounce have fallen in Michigan from $152 in January 2022 to $80 in January 2023, WOOD-TV reports. Benham Wrigley Jr., an attorney with CannaLex law, attributed the price decline to “oversupply.” 

“You might go to the state of Illinois and only find 12 growers, here you can have as many growers as municipalities will allow.” — Wrigley to WOOD TV 

According to a Crain’s Detroit Business report, there are five Michigan cannabis companies that have been placed under receiverships in the state. A receivership is a court-appointed tool that can assist creditors in recovering funds in default and can help troubled companies avoid bankruptcy.  

SKYMINT, which has 24 dispensaries in Michigan and has entered into a receivership, said in a statement it was forced to do so because the company was facing many challenges in the state, “including excess supply, decreasing prices, limited access to capital and the increasing cost of capital.” 

Wrigley said he expects cannabis prices in the state to level out as stores inevitably go out of business and growers produce less.     

According to the Michigan Department of Treasury, adult-use cannabis sales in Michigan topped $1.8 billion during the 2022 fiscal year. There are 574 adult-use licensees throughout the state.  

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Kentucky Senate Committee Approves Medical Cannabis Bill

3/15/2023

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The medical cannabis legalization bill in Kentucky passed through the Senate Licensing and Occupations Committee on Tuesday and will advance next to the full chamber, WKMS reports. The committee added just one amendment to the measure, allowing employers to “conduct assessments of impairment of an employee” with a medical cannabis card. 

The measure would not allow patients to access smokable products but permits edible and concentrates. If approved by both legislative chambers, the bill would take effect on January 1, 2025. 

Senate Majority Floor leader Damon Thayer (R), a longtime opponent of medical cannabis legalization in the state, voted in favor of the measure, but described the move as a “tough vote.” He added that he was unsure if the legislation had enough votes to pass the full chamber. 

“I’m very concerned about the lack of science. But this was not a recreational bill. I’m just trying to show a little empathy and sympathy in my old age.” — Thayer via WKMS 

Senate President Robert Stivers (R) has also opposed medical cannabis legalization; however, he indicated earlier this year he would support medical cannabis use in end-of-life circumstances, the report says.

Medical cannabis legalization has been a legislative priority for Democratic Gov. Andy Beshear, who last year, via executive order, legalized the possession of cannabis by some individuals suffering from severe medical conditions. Those reforms took effect on January 1 and allow patients with a medical provider’s statement to possess up to eight ounces of cannabis for medical purposes if purchased legally in another state. Kentucky borders three states with medical cannabis programs – Illinois, Ohio, and West Virginia – but neither Ohio nor West Virginia allow medical cannabis access to non-residents.   

Medical cannabis legalization passed the House in both 2020 and 2022 but died in the Senate. Both chambers must approve the bill before the state session ends at the end of the month. 

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Comparing Pre-Roll Filling Machines

3/15/2023

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Pre-rolls are the fastest-growing products in the cannabis market, but they weren’t always such a popular choice. Early on, pre-rolls had a reputation for being low-quality products, and it was a well-earned reputation. It’s hard to replicate and scale the care that goes into making a quality joint, so pre-rolls quickly became a place for flower producers to dump their shake and trim.

One of the biggest reasons pre-rolls have seen such incredible growth is because of advancements in pre-roll production machinery. Not only have these machines sped up the process of making pre-rolls, but they have also allowed producers to increase the quality of their pre-rolls. Consumers now have access to better pre-rolls at a better price point. It’s easy to see why pre-rolls are the fastest-growing product in the cannabis industry!

What Pre-Rolls Are You Making?

There’s a lot to consider when launching a new pre-roll line, and the machine you choose is right up there as one of the most important decisions you’ll make. The perfect machine for your pre-roll project isn’t going to be for everyone. You need a machine that is going to meet your specific needs.

The first thing to consider is what kind of pre-roll you want to make. Are you planning on making an entire line of pre-rolls that will come in a variety of sizes, or is your plan to focus on producing one size? Some machines are better at making one type of pre-roll whereas other machines are more versatile for making multiple sizes.

One of the most versatile machines on the market is the King Kone. Right out of the box, you are going to have the ability to make full-gram, half-gram, and quarter-gram pre-rolls, and, with an attachment, you can even make tube-style pre-rolls. The Futurola Knockbox machines are similar in their ability to create multiple types of pre-rolls out of the box. The biggest difference between the King Kone and the Knockbox being that the holes in the King Kone cartridges are tapered to fully cradle the cones. This means more flower ends up in the cone. Additionally, the filling cartridge in the Knockbox is made of glass and tends to break easily, compared to the durable polycarbonate plastic trays in the King Kone.

The Fill and Fold Machine isn’t as versatile out of the box, as it only comes with one cartridge size (different sizes can be purchased separately); however, if you are only planning on making one size of pre-rolls, The Fill and Fold is going to be your best option. All the machines are similar in how they fill empty cones, but the Fill and Fold machine’s tamping tool will also close the pre-rolls. In other words, instead of spending the time folding and closing each pre-roll individually, you can close entire rows at a time before you eject them out of the machine.

How Many Pre-Rolls Do You Need to Produce?

You may think the more cones a machine can hold, the faster you are going to be able to produce pre-rolls, but this is not always the case. You have to take into consideration the entire production line. For example, if you can only finish 600 pre-rolls an hour, it doesn’t matter that you can fill 10,000 in the same amount of time. You will only be as fast as the slowest point of your production line.

So, instead of buying the biggest machine, it is often better to buy extra cartridges and/or multiple smaller machines. Extra cartridges have the benefit of not overwhelming the production line, and multiple machines means that your production won’t stop if one machine needs maintenance or cleaning.

There does come a point where it makes sense to invest in a bigger machine. If you find yourself needing to produce more than 50,000 pre-rolls a month, it starts to make financial sense to bring in an automated pre-roll machine. You can automate everything on the production line, and, since these machines are modular in design, you can expand your automation capacities from one machine to many over time.

Pre-Roll Machine Functionality

A pre-roll needs to be packed well if it is going to burn properly. If it is packed too loose, then it burns fast and harsh. If it is packed too tight, you get weak pulls, and it won’t stay lit. Most pre-roll filling machines use vibration to pack the pre-rolls—the more premium models offering a more powerful motor to ensure a solid pack.
The King Kone distinguishes itself by having a motor that moves the platform underneath the pre-rolls up and down to simulate a packing motion. The King Kone also distinguishes itself from other models by having a tray that catches the flower that bounces out during packing. What this means is that you will spend less time cleaning up your production line and lose less cannabis material in the process.

On the other hand, both the Fill & Fold and Knockbox use vibration to fill and pack the cones. The vibration on the Fill & Fold is very strong and creates a nice, dense pack. The vibrating motor on the Fill & Fold is so strong, you can actually bounce the cones out of the machine, so you are instructed not to turn it all the way up! The Knockbox uses a subwoofer type system to bounce the platform, which is rather weak and may lead to soft spots and floppy ends near the filter tips.

A feature that you can expect to find on all premium models (King Kone, Futurola, Fill and Fold) is the ability to control the speed at which the machine packs. This will allow you to adjust how hard your machine packs based on the flower you are using. For example, if you have some flower that is extra sticky, you can easily increase the packing power to make sure your pre-rolls burn appropriately. The King Kone and Fill & Fold have a variable dial, whereas the Knockbox has 3 speed settings.

Pre-Roll Machine Add-Ons

A pre-roll filling machine with great add-ons will not only increase your ability to produce different types of pre-rolls, but they will also increase your efficiency. For example, a metering tray is an add-on that will help you be more precise with your filling. This cuts down on waste and saves time in the finishing process, as you will have fewer mistakes when verifying the weight of the pre-rolls before they get packaged for sale.

Tampering tools are also a great add-on that will ensure a solid smoking experience of your pre-roll. Fill and Fold machines stand out in this section, as they come with a tamping tool that will not only tamper the pre-rolls, but it will also close the pre-rolls — saving you time further down the production line. A tamping tool can be purchased separately for the King Kone machine, which is placed on top of the machine while packaging and helps tamp down the tops of all the pre-rolls.

The King Kone stands apart from other machines for its ability to create multiple-sized cones right out of the box. All other machines require additional cartridges (sold separately) to make different types of cones. Only the King Kone and Futurola machines can make pre-rolled tubes, but both require a separate cartridge that is purchased separately.

Pre-Roll Machine Durability

Before you pick a machine, consider the quality of the model, how long you plan on using it, and if you are planning on scaling up with that machine. You don’t want to be in a position where you have to invest in completely different machines down the line because you didn’t invest in the right one up front.

Made from stainless steel and polycarbonate, you can’t go wrong with the King Kone. As well as being the most versatile, it is also the most durable! The Fill and Fold is also quite sturdy, as it is made from a high-density food grade plastic. The Futurola and Fast Fill models are made from plastic and are less durable. Each model comes with a limited manufacturer’s warranty.

Price of the Pre-Roll Machines

The price of a pre-roll filling machine is going to be anywhere between $450 for a non-electronic cone filling machine and $250,000+ for an automated pre-roll machine. That’s a huge range, so your decision is going to be dependent on what types of pre-rolls you are making and the scale of your production; however, regardless of the specifics of your pre-roll project and the machine you decide to use, it’s better to invest in multiple small machines before you invest in one large machine.

This ensures that production will not stop if one machine goes down for maintenance or cleaning, but it also gives you the ability to make different types of pre-rolls simultaneously. Each machine is limited to making one type of pre-roll at a time. If you want to make a different type, you have to stop production and reconfigure the machine. This can be a long process that can eat into your production margins.

The big takeaway here is that you have to consider the price of the machine as well as the price of production. Some machines will cost more upfront, but they save you money by speeding things up. The right machine for you is going to keep your entire production line streamlined.

Manual Cone Filling Machines vs Automation

If you plan on making more than 50,000 pre-rolls a month, you should start considering automated machinery for pre-roll production. Whereas nothing will come close to the number of pre-rolls they produce, there are other limitations associated with these machines.

Firstly, for the machine to run smoothly, you need to prepare the flower in a certain way. Whereas other machines can use the stickiest bud and a range of grind sizes, an automated machine needs the flower to be less sticky and have a consistent, finer grind. Sticky buds can easily gunk up these machines. This can cause unscheduled delays in production. An even grind also ensures that pre-rolls can be finished consistently.

Because of the demands on the flower, it almost becomes necessary to invest in an Industrial Grinder and Sifter — another upfront cost that is not included with the filling machine. Of course, many people have one of these grinders and sifters before they invest in an automated pre-roll filling machine, as they are very useful for optimizing production regardless of the machine being used.

Another downside to automated machinery is that there is a long downtime associated with adjusting the machine and/or cleaning it. So, if you wanted to make different types of pre-rolls and only have one machine, you will waste a lot of time getting the machine ready for each type. Also, most automated machines limit you to a standard empty cone. You won’t be able to use blunt wraps or cones with premium filter tips (glass, ceramic, etc).

Lastly, you don’t want just anyone running your automated machinery. Whereas the other models can be learned quickly and can be picked up by a new hire, the automated machinery requires someone with training and, if possible, experience. This means you’ll be paying this person more. This cannot be a high-turnover position.

Customer Service

Every pre-roll project is unique, so there isn’t a one-size-fits-all answer for picking the right pre-roll filling machine. The right machine for you is going to depend on your current production goals as well as how you see those goals expanding in the future.

As a provider of custom pre-roll equipment and supplies, we at Custom Cones USA have hands-on experience with every aspect of the pre-roll industry. If you have questions about pre-roll production or need help finding the best equipment, the Pre-Roll Experts at Custom Cones USA have the answers you need to bring your pre-roll project to life!

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Bipartisan Federal Bill Would Let Individuals with Drug Convictions Obtain Hemp Licenses

3/14/2023

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A bipartisan bill introduced in the House last week would allow individuals with drug convictions to obtain a hemp license. The 2018 Farm Bill, which expanded the federal government’s hemp legalization policies, prohibits people with a felony drug conviction within the past 10 years from cultivating hemp.

The measure, dubbed the Free to Grow Act, is backed by Republican Reps. Nancy Mace (S.C.) and David Joyce (OH), along with Democratic Reps. David Trone (MD) and Senior House Agriculture Committee Member Chellie Pingree (ME).

Pingree described the current policy, barring those with drug convictions, as a “discriminatory policy,” adding that the rules are stunting the hemp industry’s growth.

“The upcoming Farm Bill gives Congress a once-in-five-years opportunity to correct the unfair policy that bans people with drug convictions from growing hemp. I am proud to join Reps. Trone, Joyce, and Mace in that effort by introducing the Free to Grow Act, addressing this injustice and supporting a thriving hemp economy.” — Pingree in a press release

On Twitter, Trone said the bill would “give folks a real second chance.”

The legislation is endorsed by Americans for Prosperity, DREAM.Org, Drug Policy Alliance, Due Process Institute, Minorities for Medical Marijuana Cannabis & Hemp Policy, R. St Institute, and U.S. Hemp Roundtable.

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Kentucky Senate Committee Set to Consider Medical Cannabis Bill

3/14/2023

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The Kentucky Senate Licensing and Occupations Committee is set to hear a proposed medical cannabis bill today – the first time any Senate committee will take up medical cannabis legislation, WHAS11 reports. State Sen. Steve West (R), the bill’s primary sponsor, told WHAS11 that he thinks he has the votes in the full senate to pass the measure.  

“And just the fact that we’re getting a hearing is a big deal. … I’ve been working on this for a long time. It seems like every year, there’s positive movement forward. And so this is just the next step.” — West to WHAS11 

West added that he’s made “hundreds, if not thousands” of changes to the bill over the years in an effort to get it approved by the chamber. One of those changes included tasking program administration to the Cabinet for Health and Family Services and not the Department of Alcoholic Beverage Control.    

“If leadership wanted to kill it, they definitely could have assigned it to a committee that may be less friendly,” West said, “And they haven’t done so.” 

The measure would not allow patients to access smokable products but permits edible and concentrates. If approved by both legislative chambers, the bill would take effect Jan. 1, 2025. Medical cannabis legislation has passed the House in the past but has always died in the Senate. The state’s session ends at the end of the month, so it is expected to head to the Senate floor fairly quickly if approved by the committee, the report says.  

Medical cannabis legalization has been a legislative priority for Democratic Gov. Andy Beshear, who last year, via executive order, legalized the possession of cannabis by some individuals suffering from severe medical conditions. Those reforms took effect January 1, and allow individuals with a medical provider’s statement to possess up to eight ounces of cannabis for medical purposes if purchased legally in another state. 

Kentucky borders three states with medical cannabis programs – Illinois, Ohio, and West Virginia – but neither Ohio nor West Virginia allow medical cannabis access to non-residents. 

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Cannabis Industry Experts Discuss the Latest Strategies for Navigating Regulations in Chorus’s Upcoming Webinar

3/14/2023

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As cannabis regulations evolve, operators must adapt their cannabis compliance and risk management strategies. Join Chorus Compliance’s upcoming webinar, “Thriving or Surviving? How Regulatory Policies Impact the Success of Cannabis Retail Operators,” on March 21st at 11 AM PST. This live event will feature a panel of seasoned industry experts discussing the latest cannabis regulations, licensing, and investment.

The speakers include Hirsh Jain, Founder of Ananda Strategy; Zander Abrams, Principal of CPF Ventures; Juliana Whitney, Founder of Cann Strategy; and Eric Lutringer, a cannabis compliance executive.

This webinar aims to provide attendees with valuable insights into the nuances of the latest cannabis regulations, which parts of the regulatory landscape enhance opportunities for retailers (and which hinder them), and strategies for overcoming compliance challenges.

“We’re thrilled to bring together industry experts to help cannabis retail operators navigate complex regulatory environments,” said Adriana Hemans, Director of Marketing for Chorus. “This webinar is an excellent opportunity for attendees to learn from experienced professionals and connect with other operators facing similar challenges.”

Registration for the webinar is now open. To reserve your seat and gain valuable insights into cannabis compliance, risk management, and software solutions, please visit https://bit.ly/3Fo1oXU

About Chorus Compliance, LLC
Chorus Compliance, LLC, was originally launched as a division of SC Labs. In September of 2022, Chorus Compliance, LLC became a standalone business entity. The company’s mission is to support licensed operators in the legal cannabis market with smart, affordable software solutions to establish audit readiness, drive business optimization, and ensure compliance. The Chorus Compliance platform allows license holders to keep up with complex and ever-changing regulations, conduct self-audits, communicate SOPs efficiently across the organization, establish best practices, retain talent, and safeguard their operations from fines and loss of license.

 

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Alex Rogers: Connecting the International Cannabis Community

3/14/2023

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With cannabis reforms taking root across the globe, there is a growing need for spaces where cannabis professionals can gather, network, and shape the future of the cannabis industry. The International Cannabis Business Conference (ICBC) regularly hosts such occasions across the US, Canada, and Europe, with their next conference coming to Berlin, Germany from June 29-30.

This Q&A with ICBC owner and founder Alex Rogers covers the event series’ inception, how they choose locations for their events, and Alex’s other cannabis endeavors. The interview also covers the differences between American and European cannabis consumers, his expectations for legalization prospects in Germany and other EU nations, and more!

Scroll down for the full interview:

Ganjapreneur: How did you originally get involved in planning & hosting cannabis-related events?

Alex Rogers: I started producing cannabis events in 1994. I was one of the four main organizing members of The Hemp Expo in Golden Gate Park in 1994 with 30K attendees. I also created a rap-weed event in 94′ called “Hemp-Hop” w Del The Funkee Homosapian. In 94′ I also organized an event at Lighthouse Point in Santa Cruz with Jack Herer and B-Real from Cypress Hill where we did a human peace chain that was over a mile long wrapping far up the Santa Cruz coastline. In the late 90’s and early 2000’s, I ran the Melkweg Concert House for the High Times Cannabis Cup. The first ICBC was in 2014, and our first event in Europe (Berlin), was 2017.

Has your personal relationship with cannabis changed throughout your career and if so, how?

Cool question. I have been a daily smoker for 35 years. Cannabis has always helped me balance my slightly frenetic and high-energy demeanor. It keeps me in mental, physical and spiritual balance and helps me be a highly functioning member of society. As I get older, I smoke a little less than when I was a wild young man. No more bong-hit completions these days. Also, after extensive time in Europe, I started smoking weed with tobacco. So, I have not smoked “pure” for the last 23 years. Many of my American hippie and Rasta friends give me shit about this to this day. For the last five years, I only smoke hash and tobacco. This is an extremely functional way for me to smoke. Even my European friends think it is a bit hard-core that I only smoke hash.

What was the original inspiration behind your decision to launch the International Cannabis Business Conference?

I am the owner of one of Oregon’s most successful MMJ clinics. For a long time, patients had no dispensaries to go to in Oregon, and were dependent on their surrogate grower for their medicine. When the dispensaries were proposed for Oregon and put on the state ballot, my patients started asking me a whole litany of questions. I saw the industry going to the next level and that people were hungry for general information, thusly, spawning the ICBC.

How do you select cities and locations for your events? Have you encountered resistance or pushback from local law enforcement or governments?

All of my cannabis businesses are aimed at helping professionalize the cannabis industry. I pride myself on having access to certain cities and venues that many others would not otherwise be able to. Being the consummate professional with a dash of renegade, has proven to be a very successful model. After 40 events in the last eight years, I can say that we have never had any resistance or blowback. This is testament of how the ICBC comes to a certain area of the world and helps make big changes, even if it just helping to change to general perception of cannabis in the community at large.

There are a number of reasons we might select a certain area. Currently, we are focused on being the leaders in the B2B space in Europe. We do have a couple of locations in mind beyond Europe for 2024-2025.

Who attends ICBC? Is it primarily people in the markets where the events are hosted, people from other nations looking to break into those markets, or a combination of both?

Our flagship event in Berlin is attended by over 80 countries. I would say that 20% of the attendees in Berlin are German. The ICBC Berlin has become the biggest and most popular meeting point for B2B cannabis in the Eastern Hemisphere. You will find executives from almost all of the world’s finest and most popular cannabis companies at the ICBC. We also have about ten different governments represented at the ICBC, including, New Zealand, Australia, South Africa, Columbia and Uruguay. Of course, we also have many dynamic starts-ups in attendance from all around the world. It is truly a global experience!

Which European cannabis markets are you most excited to watch develop over the next few years?

There is no question that many of my colleagues and I are excited about Germany legalizing. We are expecting the law to be written and presented in March. Of course, this is huge, as Germany will be by far the biggest federally legal market in the world. The ramifications of this are very significant with regard to the rest of Europe opening up.

Spain has the best weed in Europe, and the club scene there is so much fun. It is a great example of how legalization will look like in Europe. The irony is that the club scene is still underground, and the powers that be continuing to stall on codifying their existence into law.

Since I live in Slovenia, I am also interested in Slovenia’s future cannabis markets. I will be leading a decrim and legalization initiative here soon. It is a very special place with a strong cannabis culture.

How are European cannabis consumers different from consumers in the USA? Do you anticipate that European consumer preferences will evolve in a similar way to the US market as legalization enables different product categories to become more accessible?

The two markets are actually quite different. The biggest difference is that Europeans smoke their weed with tobacco. Flower is king, here. Vape pens took a long time to get a foothold here and are still struggling compared to spliffs. When you ask a European why they use the vape, they tell you it is because they can use it almost anywhere, without blowing up the spot. There are very few Europeans, if giving the choice, who would use a vape over a spliff. Also, dabbing will probably never catch on in Europe. It is just not enjoyable to most European’s, and they see it as excessive. Regarding edibles, there is more of an analogous crossover with the US and Europe. I see most popular edible items in the US, also doing very well in Europe.

Do you think European cannabis policy will ever get to a point where adult use is legal across the continent as a whole? If so, how long do you think that might take?

Yes, it is only a matter of time. There is currently so many jurisdictions which have decrim for small amounts, that in many places it already feels de facto legal. That being said, most of the continent will be legalized in some way or the other in about 5-7 years. And some countries will have full on adult-use in 2-3 years. It is happening fast, considering how long prohibition policies have controlled the continent.

Once international cannabis commerce has been normalized, which European cannabis markets do you think will have the most significant impact on the global market?

We go back to Germany again. It can’t be understated how important Germany legalizing is. Though there are other countries that might have a slightly more robust cannabis cultures, with regards to cannabis policy and cannabis markets, Germany will rule the roost for many years to come.

Thank you, Alex! Readers can learn more about the International Cannabis Business Conference at InternationalCBC.com.

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Top U.S. Intelligence Official Says Security Clearance Not Based on Past Cannabis Use

3/14/2023

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A top U.S. Intelligence official recently reaffirmed the federal government’s policy to not deny security clearances for employees based on their past cannabis use, Marijuana Moment reports.

The comment came during a Senate Intelligence Committee hearing when Director of National Intelligence (DNI) Avril Haines answered a question posed by Sen. Ron Wyden (D) about the agency’s cannabis policy.

“We recognize, frankly, that many states have legalized or decriminalized marijuana use and wanted to be sure that we’re not disqualifying people solely for that purpose in that context. We obviously believe that we want to have the talent that exists in America — and when somebody is using [cannabis] experimentally in a legal state that’s something that shouldn’t on its own essentially disqualify.” — Haines, via Marijuana Moment

The senator’s question related to a 2021 DNI memo that advised federal employers not to reject security clearances based on an employee’s past cannabis use and use “discretion” when looking at cannabis stocks in their portfolio.

Last year, Sen. Wyden attempted to pass a provision that barred the federal government from holding an employee’s past cannabis use against them when assessing their potential security clearance. Although a watered-down version — which would have only applied to individuals working in the intelligence community and not the larger federal government workforce — did pass the Intelligence Committee, the amendment was ultimately stripped from the intelligence bill before it was attached to the Defense Authorization Act (NDAA).

“We continue to approach this from a whole-person perspective,” Haine said during the hearing. “And we expect if anybody takes the job to comply with our policies and our laws in a trusted position.”

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Maryland House Passes Bill to Create Adult-Use Cannabis Framework

3/14/2023

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Maryland’s House last week passed a bill to create a framework for the state’s forthcoming adult-use cannabis market, The Diamondback reports. The bill comes after voters approved a ballot measure to legalize cannabis for adult-use last November. 

The bill passed by the House includes social equity provisions and an office to encourage communities most affected by the criminalization on cannabis to participate in the industry. The measure also establishes a Community Reinvestment and Repair Fund to fund community-based initiatives intended to benefit low-income groups. The legislation would also establish a licensing system and regulatory agencies. 

During debate on the measure, Del. C.T. Wilson (D), one of the bill’s lead sponsors and the chair of the Economic Matters Committee, said it is the dusty of lawmakers “to ensure that Marylanders can receive the benefit of ownership in this industry.” 

“…That citizens can have access to safe and effective cannabis without fear of adverse health effects, or violence. That small businesses in Maryland can flourish in this industry. That communities that were ravaged by the War on Drugs are in some small part to finally benefit from marijuana.” — Wilson via The Diamondback 

The proposal outlines a Cannabis Public Health Fund which is intended to address the possible health effects associated with cannabis legalization. The fund would be partially comprised from tax revenues from cannabis sales and would be used for data collection and education and training for law enforcement on how to recognize when someone is impaired by cannabis. 

The measure passed the House 103-32 and moves next to the Senate. 

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Oregon Cannabis Prices Fall to All-Time Low of $4 Per Gram

3/13/2023

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Oregon per-gram cannabis prices have fallen 16% from last year to $4 at the start of this year, according to the Oregon Liquor and Cannabis Commission’s 2023 Recreational Marijuana Supply and Demand Legislative report. The prices in the state are now at an all-time low.

“The OLCC estimates that market demand was 52% of supply in 2021, and 63% in 2022. The fact that 2022 was closer to supply/demand equilibrium than 2021 stands in contrast to the deteriorating market conditions. On the one hand, the fact that supply was closer to demand is a reflection of the decrease in annual production by OLCC Producers in 2022, a self-correction in the market that offers a glimmer of hope for 2023. On the other hand, the declining wholesale and retail prices for usable marijuana are due to large stocks of usable marijuana inventory leftover from previous years, which is likely to continue to put downward pressure on prices.” — OLCC, “Recreational Marijuana Supply and Demand Legislative Report,” Feb. 2, 2023

The agency found that the total quantity sold of usable cannabis increased in both 2021 and 2022, but the OLCC described the increase as “a fairly tepid rate.” The increase in 2022 was 2% in 2022 and just 1% in 2021, compared to a growth rate of 27% in 2020.

“The quantity sold of concentrates/extracts, edibles, and tinctures, on the other hand, declined in 2022,” the agency said in the report. “Because of the diversity of products in the market, it is difficult to do an apples-to-apples comparison of quantities sold from one year to the next.”

The agency notes that the state saw a sales increase from 2020 to 2021 – from $1.1 billion to $1.2 billion – but decreased to $994 million last year. Monthly sales last peaked in April 2021, the agency said, but have declined every month since, save for a spike in August 2021.

According to the OLCC report, the abundant cannabis supply in 2021 and the declining prices throughout 2022 placed cannabusinesses under “severe strain.”

Despite lawmakers placing a moratorium on producer and retailer licenses, the OLCC said the number of producers and retailers are “now at their highest levels ever.” While the moratorium applies to new licenses, some applications eligible last year had been first filed in 2018. The agency said that while the number of licenses continued to rise last year, the number of active businesses “continued to decline.”

The OLCC does see “positive signs of improved (or at least, less bad) market health” this year, pointing to a less steep decline in retail prices and “relatively strong” sales of edibles – a product sector which saw a modest 0.2% growth last year.

“The Oregon recreational marijuana market has repeatedly shown that it is like any other market in one important respect, but unique in another,” the OLCC said in the report. “Like other markets, it is responsive to market signals and ramps supply up or down depending on demand. Unlike other markets, however, the federal status of cannabis means that Oregon is what has been termed a ‘market in a box’ – supply must stay within the state’s borders, despite its strong comparative advantage in cannabis production.”

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Prof. Raphael Mechoulam, ‘Father of Cannabis Research,’ Dead at 92

3/13/2023

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Professor Raphael Mechoulam, the “Father of Cannabis Research,” passed away on Friday at the age of 92, the American Friends of the Hebrew University announced in a statement. His groundbreaking discoveries in the 1960s — including the first-ever discovery and isolation of tetrahydrocannabinol, or THC — lay the framework for modern cannabinoid research.

Prof. Mechoulam was born on November 5, 1930, in Sofia, Bulgaria. He emigrated to Israel with his family in 1949 where he began to study chemistry. He received his Ph.D. at the Weizmann Institute in 1958, conducted postdoctoral studies at the Rockefeller Institute in New York from 1959 to 1960, then joined the Weizman Institute’s scientific staff from 1960 to 1965, which led to his groundbreaking discovery.

He ultimately moved to the Hebrew University of Jerusalem and became a full professor there in 1972.

“Most of the human and scientific knowledge about cannabis was accumulated thanks to Prof. Mechoulam. He paved the way for groundbreaking studies and initiated scientific cooperation between researchers around the world. Mechoulam was a sharp-minded and charismatic pioneer. This is a sad day for the academic community and for the university. I send my sincere condolences to his family.” — Asher Cohen, Hebrew University President, in a statement

Prof. Mechoulam’s work also revealed the endocannabinoid system, a vast chemical network in each of our bodies that reacts with both endogenous cannabinoids, which occur naturally in our bodies, and other cannabinoids such as THC or CBD.

 

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Study: Medical Cannabis Use By Americans Doubled From 2013-2020

3/13/2023

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Medical cannabis use among Americans increased from 1.2% in 2013-2014 to 2.5% in 2019-2020, according to research published March 12 in the American Journal of Preventative Medicine. 

The study, conducted by researchers at the Yale School of Medicine, used A modified Poisson model to estimate the average annual percent change (AAPC) of medical cannabis use from 2013 to 2020. The study suggests an AAPC of 12.9% from the period included in the model.    

“The study documents a continued nationwide increase in use of cannabis for diverse medical purposes between 2013 and 2020, two decades after the first state passed legalizing legislation.” — “Increasing Use of Cannabis for Medical Purposes among US Residents 2013-2020,” American Journal of Preventative Medicine

The analyses included “key socio-demographic and clinical subgroups” and the data analyzed was from September 2013 to November 2022. The researchers note that “living in a state that legalized medical cannabis remained significantly associated with medical cannabis use.” 

Medical cannabis is legal in 39 states and Washington D.C.  

The study does not indicate the percentage of patients that are enrolled in low-THC or CBD-only programs administered by some conservative states.  

A 2022 Pew Research poll found 30% of respondents backed cannabis legalization for only medical purposes, while 59% of respondents said it should be legal for medical and adult-use. 

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Kentucky House Passes Delta-8 Regulation Bill

3/13/2023

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The Kentucky House on Thursday passed a bill to regulate delta-8 THC products in the state, the Lexington Herald-Leader reports. The measure stops short of an outright ban on the products, which is opposed by Democratic Gov. Andy Beshear.

The proposal gives the Kentucky Cabinet for Health and Family Services until August 1 to promulgate rules and regulations for the production and sale of delta-8 products in the state. The measure would also prohibit the sale of delta-8 products to anyone under 21-years-old; require delta-8 products to be kept behind the counter at retailers; establish laboratory testing for the products to check for harmful contaminants; and require product labeling that clearly discloses the ingredients.

John Taylor, founder and chief executive officer of Commonwealth Extracts, testified during a House Health Services Committee hearing on the measure on Thursday that the bill “gets rid of the bad actors who make it hard to compete.”

“It costs a lot of money to do the right thing, and when we have people making things in the bathrooms and basements and barns, it really makes it hard for us to compete on a legitimate level.” — Taylor via the Herald-Leader

Last year, the state Senate voted to pass a bill banning the production of intoxicating hemp-derived products, including delta-8 THC, but that measure died in the House. There is a separate bill proposed in the House seeking an outright ban, but that measure has not been heard by any of the chamber committees.

The regulation measure moves next to the Senate.

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Poll: 70% of Florida Voters Back Cannabis Legalization

3/10/2023

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A University of North Florida poll released Thursday found 70% of respondents would back a constitutional amendment to legalize cannabis for adult use. The level of support is higher than the 64% recorded by the university’s Public Opinion Reseach Lab (PORL) in November 2019 but lower than the 76% of support PORL found in February 2022.   

In a statement, Dr. Michael Binder, PORL faculty director and professor of political science, said the survey results show that if a cannabis legalization question is put to voters next year “it has a good chance of reaching the 60% supermajority needed to pass.” However, Binder said it is a “big if” whether the question makes it to ballots.   

Activists in Florida, led by the Smart and Safe Florida campaign, are pushing to get the issue on 2024 ballots. In January, the committee had gathered more than 148,000 valid signatures to put the question before voters. The campaign would need to submit a total of 891,589 signatures to get the issue on 2024 ballots and would need to submit 222,898 signatures to trigger a Florida Supreme Court review of the proposal’s wording on the ballot. 

The measure, “Adult Personal Use of Marijuana” would allow individuals 21 and older “to possess, purchase, or use marijuana products and marijuana accessories for non-medical personal consumption by smoking, ingestion, or otherwise,” according to measure language submitted to the state Division of Elections. 

The PORL poll found 76% of Democrats “strongly” or “somewhat” backed the reforms, along with 57% of Republicans, and 78% of voters with no party or third-party affiliation. Another 22% of Democrats “strongly” or “somewhat” opposed the reforms, along with 41% of Republicans, and 21% of voters with no party or third-party affiliation.  

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Mexico Grants First License for Cannabis Cultivation

3/10/2023

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Mexico’s government on Thursday granted its first-ever license for cannabis cultivation in the country. The Mexican Health Regulatory Agency awarded the license to Xebra Brands which allows it to import and acquire cannabis seeds, cultivate and harvest cannabis, process and produce cannabis, and sell cannabis products both domestically and through export.   

The licensing comes two years after the Mexico Supreme Court ruled cannabis prohibition was unconstitutional which led to the passage of cannabis reforms by federal lawmakers.   

In a press release, Jay Garnett, CEO of Xebra Brands, said the license “represents an important moment for cannabis globally with the first ever grant for full cultivation, harvesting, processing and commercial activities to a corporate entity in Mexico.”  

“This grant follows years of hard work and focus by a devoted team and is only the beginning of what Xebra has laid as the foundation for growth. The path is now clear for Xebra to continue forward to unlock the commercial opportunities that exists. We are excited to start the process of engaging with potential partners and stakeholders through various commercial joint-ventures/partnerships.” — Garnett in a statement 

In 2021, Mexico’s Supreme Court voted unanimously to grant Xebra Mexico an irrevocable injunction to commercialize cannabis products – the final step required the regulators to deliver formal authorizations. The authorizations received by Xebra include standard conditions concerning safety protocols, security measures, phyto-sanitation processes, pest management procedures, and customary inspection and reporting provisions, the company said. The authorizations are subject to Xebra satisfying the industry standard conditions and initially allow the commercialization of products that contain less than 1% THC. 

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Delaware House Passes Bill to Create Cannabis Market

3/10/2023

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Two days after approving a bill to legalize cannabis use and possession by adults Delaware House lawmakers approved legislation to create the framework for a regulated cannabis marketplace in the state, WHYY reports. The bill passed the chamber 27-13. 

In an interview with WHYY, Rep. Ed Osienski (D) who has sponsored the cannabis legalization push in the state for years, said “it has been a long journey to get to this point.” 

“We have experienced setbacks along the way, none worse than losing business to New Jersey, but we have learned a great deal and produced what we believe is a strong bill that will make Delaware an industry leader in this field.” — Osienski to WHYY 

The bill includes licensing provisions, restrictions on sales to minors, and driving under the influence rules. Under the proposal, the state would grant 30 retail dispensary licenses with half of them set aside for social equity applicants. Social equity licenses would be available for Delaware residents who lived for at least five years in areas “disproportionately impacted” by the state’s enforcement of cannabis laws and include anyone convicted for cannabis-related offenses, with some exceptions, the report says. 

The legislation also creates a Justice Reinvestment Fund which would receive 7% of revenues derived from cannabis excise taxes which would be used for “restorative justice, jail diversion, workforce development, industry-specific technical assistance, and mentoring services for economically disadvantaged persons,” Osienski said. 

The measure and the previously approved possession and use bill each move next to the Senate. If approved by the chamber, the bills would move to Gov. John Carney (D) who vetoed a similar effort last year.  

Both bills passed the House with enough votes to override a veto.

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