Michigan Regulators Warn of Uptick in Crime Against Cannabis Delivery Drivers

The Michigan Cannabis Regulatory Agency (CRA) on Tuesday issued an advisory bulletin warning of an increase in “a pattern in reported criminal activity” related to cannabis delivery drivers.  

The agency said there have been 13 thefts of cannabis products from delivery drivers in the last six weeks, including armed robberies during which product and vehicles have been stolen and the drivers assaulted. 

The incidents occurred in Ann Arbor, Detroit, Ferndale, Hamtramck, Hazel Park, Lansing, Utica, and Westland, the agency said. 

Under state law, cannabis licensees and applicants are required to report incidents of theft within 24 hours of becoming aware of any theft or loss of any product or criminal activity at the business.

Last spring and summer, several reports of crimes against cannabusinesses were reported in Michigan. In May, 11 suspects were arrested after police spotted them throwing a safe off of a garage roof in their attempt to open it, WWMT reports. The safe was linked to a dispensary in Battle Creek. The business, Sticky Battle Creek, told WWMT they had been robbed twice. In June, one person was arrested as part of a group attempting to rob Skymint dispensary in Muskegon, according to a 13 On Your Side report. The following month, over the July 4 holiday weekend, My Michiganja was burglarized, according to 13 On Your Side. Four Battle Creek men were later charged with the robberies.

Cannabis businesses are often targeted by criminals, in part because they keep cash on hand as federal law makes banking difficult for cannabis companies.   

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Minnesota Brewing Co-Op Launches Cannabeverage Distribution Center

Fair State Brewing Cooperative on Tuesday launched Minnesota’s first fulfillment and co-packing house and distribution center exclusively for hemp-derived beverages. Named Chill State Collective, after Fair State’s cannabis beverage line, the company offers co-packing, storing, distribution, and endorsement to assist other cannabeverage brands in the state.  

Fair State Brewing Cooperative is Minnesota‘s first co-op brewery and the nation’s first unionized microbrewery and third co-op brewery.   

Cannabeverage distribution involves different vendors, stores, licenses, and rules than beer distribution, the company said in a press release. In addition to Chill State’s own hemp-derived THC beverage, six other cannabeverage brands — Happi, Plift, Bent Paddle, FIND WUNDER, Offfield, and Cann — have signed onto the cooperative partnership. 

In a statement, Chill State Collective Principal and Program Director Rob Shellman said the group is “aiming to encourage safe cannabis discovery through exceptional quality.”

“We are bringing experienced operators and strategic thinkers together in a new beverage segment, which is really unique. We have the best of the best and are dedicated to running this business in a mission-driven and responsible way for Minnesota.” — Shellman in a press release

Chill State also offers co-manufacturing, warehousing, sales, distribution, events, and education.

The cannabeverage company also announced the launch of its second hemp-derived cannabis beverage, Pineapple Express. Chill State Collective’s launch comes six months after Minnesota’s legalization of THC edibles and infused beverages in July 2022.

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California’s Bestselling Cannabis Beverage Brand Uncle Arnie’s Seeking Equity Investments

Uncle Arnie’s, California’s #1-selling cannabis beverage brand, has announced equity crowdfunding investment offerings for retail investors, customers, and fans of the brand.

According to the latest report from the cannabis industry reporting tool Headset, Uncle Arnie’s has reached a significant milestone in the California market, claiming 7 out of the top 10 spots in the best-selling cannabis beverages in California and selling over 1 million drinks since their launch in 2020.

Their high-dose 100mg THC beverages are extremely popular among cannabis consumers, who have created a bar-worthy list of mixed drinks using Uncle Arnie’s signature flavors. According to CEO Theo Terris, “We’ve been laser-focused on delivering what our customers asked for: top-quality, high-dose drinks with amazing flavors at an affordable price. Our customers have responded with a loyal following of repeat purchasers.”

Uncle Arnie’s has clearly accomplished this goal in the California market, currently selling into 40% of California dispensaries and already holding the top-selling product positions across the board.

The report below shows that Uncle Arnie’s Iced Tea Lemonade (100mg THC, 8oz) takes the top spot, followed closely by Pineapple Punch Infused Drink (100mg THC, 8oz) and Apple Juice (100mg THC, 8oz). Rounding out the top four is the brand’s Sweet Peach Iced Tea Shot (100mg, 2oz), showing that Uncle Arnie’s 8oz original shots are still a hit with consumers and their new 2oz shots are a close second.

What’s interesting is that Uncle Arnie’s also has two newcomers to the top 10 rankings with their functional 2oz shots. Their Blueberry Nite Cap Shot w/CBN (5mg CBN, 100mg THC) and Sunrise Orange Shot w/Caffeine (150 mg Caffeine, 100mg THC) are both listed in the top 10, showing that consumers are willing to combine other enhanced benefits like energy and sleep into their Cannabis products.

Notably, there is only one other brand remaining in the top ten rankings for California. KEEF, a well-established cannabis beverage soda that has been around since 2010, is selling for a slightly lower price than Uncle Arnie’s. However, it only contains 10mg of THC, which is just 10% of the amount of THC found in Uncle Arnie’s drinks.

(Source: Headset.io Cannabis Beverage Industry Report)

What’s next for Uncle Arnie’s?

The company recently completed a major investment round for national expansion in October 2022 and is currently running an equity crowdfunding investment offering to retail investors, customers, and loyal fans who want to take the journey with them. Through their offering on SeedInvest, you can own shares in the company as an early investor.

You can sign up to learn more about their investment at UncleArniesInvestor.com or visit their SeedInvest page to invest.

Uncle Arnie’s is quickly becoming a household name in the cannabis industry, particularly in California where they currently hold 7 out of the top 10 selling SKUs in the beverage category. They are also rapidly expanding to Michigan and Oregon, and constantly innovating with new product offerings like their functional 2oz shots.

This is a fantastic opportunity for you to get in on the ground floor of the cannabis beverage space with a company that has a proven track record of success. With a strong team in place, a commitment to growth, innovation, and compliance, and a clear vision for the future, Uncle Arnie’s is well-positioned to continue to be a major player in the cannabis industry for years to come.

Don’t miss out on this opportunity to invest in Uncle Arnie’s. The investment round will close on January 27th.

Sign up to learn more about their investment at UncleArniesInvestor.com or visit their SeedInvest page to invest.

DISCLAIMER
Reg CF Disclaimer: Uncle Arnie’s is offering securities under Regulation CF and Rule 506(c) of Regulation D through SI Securities, LLC (“SI Securities”). The Company has filed a Form C with the Securities and Exchange Commission in connection with its offering, a copy of which may be obtained at: https://www.seedinvest.com/uncle.arnies

This article contains forward-looking statements and information relating to, among other things, the company, its business plan and strategy, and its industry. Investors should review the risks and disclosures in the offering’s draft. Before making an investment decision, investors should review the company’s Form C for a complete description of its business and offering click here.

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Las Vegas Hotel Getting Cannabis-Friendly Makeover

A hotel in Las Vegas, Nevada is undergoing a multi-million dollar renovation and rebranding as it moves toward being the first hotel in Sin City to become a cannabis-friendly property. The Artisan Hotel Boutique, located just minutes from the famed Las Vegas strip, is evolving into The Lexi, a 64-room, cannabis-friendly destination hotel.  

In a press release, the company indicated the entire fourth floor would be designated as cannabis friendly. The hotel is owned by Elevations Hotels and Resorts. Elevations CEO Alex Rizk said, “The Lexi will allow the brand to showcase its commitment to creating a new type of hotel concept that is defined not only by our acceptance and normalization of cannabis in the hospitality space, but also by our dedication to reclaim storied properties and transform them for the modern-day travelers.”  

The Lexi will ultimately offer a membership initiative that is part of Elevation Hotels & Resorts’ proprietary program, Elevations Nation. The revamped hotel is expected to open in the spring.

Elevations purchased the property in March 2022 for $11.9 million, the Las Vegas Review-Journal reports. Rizk said the company wants to maintain the personality of The Artisan. 

“We want to make it a classy experience and keep that vibe going,” he told the Journal. “We want to keep the mischievous attitude. We want to be sure to keep the sexiness of the hotel, but we want to classy it up from where it was.” 

Elevations, which is based in Phoenix, Arizona, also operates the Clarendon Hotel in Phoenix which has a cannabis-friendly lounge and rooms. 

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Outgoing Pennsylvania Gov. Issued 627 Cannabis Related Pardons During Time in Office

Outgoing Pennsylvania Gov. Tom Wolf (D) in his final week in office issued 369 pardons, bringing his total while in office to 2,540 – which is a new record for pardons issued by a governor in state history. Of those pardons, 627 were for cannabis-related crimes; of those, 395 were part of the expedited review process for nonviolent cannabis offenses and 232 were part of the PA Marijuana Pardon Project. 

“I have taken this process very seriously – reviewing and giving careful thought to each and every one of these 2,540 pardons and the lives they will impact. Every single one of the Pennsylvanians who made it through the process truly deserves their second chance, and it’s been my honor to grant it. A record prevents positive forward motion in a person’s life, and can spark a repetitive cycle of defeat. I firmly believe that with restored rights, pardoned Pennsylvanians prove themselves by stepping up and giving back to our communities.” — Wolf in a press release   

2020 report by the Economy League of Greater Philadelphia analyzing a decade of pardons data found that pardons contributed $16.5 million to Pennsylvania’s economy over the past decade, at no cost to anyone, the governor’s office said. 

Wolf served two terms as governor, the maximum consecutive terms allowed under state law. Democrat Josh Shapiro took office on January 17. 

The PA Marijuana Pardon Project was launched in 2022, spearheaded by then-Lt. Gov. John Fetterman, who was elected to the U.S. Senate last November. 

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Eastern Band of Cherokee Indians Moves Closer to North Carolina Medical Cannabis Sales

The Eastern Band of Cherokee Indians (EBCI) is moving closer toward selling medical cannabis within its Qualla Boundary in North Carolina after sending a resolution to the state Legislature last week, the Asheville Citizen-Times reports. The Tribe legalized medical cannabis within its borders in 2021 but has not yet commenced sales.

The resolution sent to state lawmakers provides them with the legal language “to further the agenda effectively and efficiently coordinating in the administration of medical cannabis laws across the jurisdictions of the state of North Carolina and Eastern Band of Cherokee Indians,” the report says. 

During the council meeting, EBCI Chief Richard Sneed explained that sending the resolution ”just grants permission … to talk to them about medical cannabis, and the subsequent North Carolina law that will probably be on the floor during the next general assembly.”  

“All this is, it is as a matter of tribal law, before anybody does any work engaging with the state or federal legislature, we have to have permission of the governing legislative body to do so.” — Sneed via the Citizen Times 

In the 2021 vote, EBCI tribal council members voted 8-4 to legalize medical cannabis. The following year, Qualla Enterprises LLC, a Tribe company, set up a website seeking to hire people for medical cannabis operations. An EBCI-funded Cannabis Control Board will manage licensing, audits, standards, investigations, and annual reports for the operation, according to EBCI’s medical marijuana code. 

“EBCI Farms will be the source for all of its products that are sold to the public. Everything from seed to sale begins here. Being vertically integrated means that EBCI produces everything from seed to sale,” the website states. “Processing the cannabis plant is a key step in drying and manicuring the finished product as well as producing material to further process into oils and other concentrates. Edibles use refined oils to determine how much THC is in each product.” 

The Tribal code includes a narrow set of qualifying conditions and is only open to individuals 21-and-older. The program will open first only to tribal members. 

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Common Mistakes Cannabis Organizations Make In Setting Up Their Finance and Accounting

Editor’s note: This editorial was contributed by Michael Gould, an accounting and finance placement executive at Higher Growth Search.

At the heart of any successful business is a strong accounting and finance team to ensure the money side of the enterprise stands up to regulatory scrutiny and puts the company in the best position to be profitable. That certainly holds true for cannabis businesses, where the importance is accentuated by the industry’s unique and evolving challenges those companies face.

There remains a stunning lack of financial transparency in cannabis due to its federal illegality and compliance costs. Access to basic financial services such as business bank accounts remains difficult because many institutions want nothing to do with cannabis accounts that can’t be FDIC insured. Cannabis operators are therefore forced to handle large amounts of cash, which drastically increases the chance of accounting errors or outright fraud. Similarly, those same banking concerns make it difficult for cannabis companies to borrow money. Restrictive tax laws and the higher probability of an audit only add to the challenges.

I routinely come across owners, managers, and supervisors who appear to treat the financial side of the business as an afterthought as they rush to get their plants to harvest or product out the door. This focused outlook creates numerous vulnerabilities, from improper tax filings and reporting to payroll issues. Ignoring such problems doesn’t make them go away.

As a result, cannabis accountants often find themselves in an uncertain environment where it is extremely difficult to know standard costs like overhead and day-to-day expenditures due to lack of policies, neglected journal entries and reporting. There is no process of making sure that everything is in alignment and there are unknown compliance costs due to cannabis industry changes, lack of owner foresight and unexpected compliance fees. Luckily, there are accountants that thrive in cleaning up messy financials and reconciling the general ledger and bank accounts so your P&L is an accurate reflection of your business. Where do you find them?

Hiring Properly

One of the most common mistakes cannabis organizations make is hiring the wrong people. As the restrictions and potential pitfalls noted above indicate, the need for quality employees with cannabis industry savvy and regulatory knowledge cannot be overstated when it comes to finance. The industry struggles because many businesses rely on unqualified staff to handle their accounting and finance duties. This is often because the owners themselves don’t completely understand the financial regulatory complexities that will impact their accounting team.

It can also be very difficult to find qualified people who can properly handle the financial aspects of a cannabis business. Intense—and fluid—state regulations make it tough on accountants who must keep up with changing laws and unique restrictions. Smaller operators may focus on staying out of regulatory hot water by only caring about their tax obligations. However, 280E tax compliance is better addressed on a daily basis with knowledgeable staff, than having a CPA firm make sense of it during a busy tax season. It’s important to recognize that hiring a dedicated fiduciary is a part of maintaining stability and setting up for successful expansion.

Undervaluing the Right People

Another mistake I see across the industry is that when cannabis companies do find the right individuals to fill finance roles, those individuals are undervalued. Often they are not paid fairly or compensated well because management does not understand the complexities of cannabis accounting, which require a high level of skill and knowledge to remain in compliance.

Also, cannabis accountants or financial experts also do not always receive the necessary tools—such as advanced accounting software—to do the job well. They tend to be overworked and operate at a disadvantage to traditional industry accountants because popular accounting systems like Quickbooks do not offer seed-to-sale product tracking nor the ability to track the various taxes involved. Most legal states also require separate tracking software that can be difficult to use and does not interact well with separate cannabis or accounting software.

How Operators Can Set Up For Success

Even if a business is not set up properly for transparent financial oversight, it is possible to right the ship and change course. Owners must understand the need to forge a strong foundation, regardless of how long they have been in business. They should clearly identify what skills and experience they need to hire for, write a good job description and understand what is considered fair compensation for the role. Owners can then proceed to a rapid recruiting and hiring schedule. Working with a recruiting and staffing partner with industry expertise can often expedite the process. Competition for top candidates is fierce, so if a strong candidate is identified, they should be hired and not lost to a competitor due to a slow process or the urge to shop around for someone who might be better.

Owners and operators should carefully communicate the goals of their company and how they are structuring or restructuring the business. Why would a candidate want to work for you? Communicate the company mission statement on job postings, and share company goals in interviews and with anyone assisting with the recruiting process. Strong and honest communication can go a long way toward attracting the right candidates to cannabis roles. Target professionals from industries like wine and consumer packaged goods to bring their understanding of how a solid business structure, policies, and procedures can transfer to the cannabis industry.

Financial professionals work best in organized environments, or in environments where leadership gives them the autonomy to get organized by identifying and creating policies and procedures that increase reporting accuracy and reduce material weaknesses. The cannabis industry is rapidly growing, and it’s exciting to see the “cash counters” of the past being replaced with talented accounting and finance professionals that provide the necessary financial data for strategic business decisions.

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Cannabis may enhance empathy, according to study

Survey: 21% of Dry January Participants Replacing Alcohol with Cannabis and CBD

Among those participating in Dry January, 21% are replacing alcohol with cannabis and CBD products, according to a CivicScience survey published January 11. Dry January participants abstain from alcohol for the entire month.  

Another 20% of participants are choosing non-alcoholic beverages in lieu of alcohol and 20% are replacing alcohol with soda or seltzer products. Six percent of respondents said they were choosing kombucha, while 33% said they were not replacing alcohol with anything. 

The majority of those replacing alcohol with cannabis and CBD are those aged 21-24 (34%), followed by 25- 34-year-olds (24%), and 35- 54-year-olds (22%). Just 9% of those aged 55 and older who are participating in Dry January said they were replacing alcohol with cannabis and CBD products.  

A poll from CivicScience published January 2 found 41% of respondents said they were “somewhat to very likely” to abstain from alcohol for the month, which is a decrease from 2022 (43%) but an increase from 2021 (33%).  

Dry January was launched by Alcohol Change UK in 2013 and that year about 4,000 people participated, according to information from the organization. By 2021 the number of participants reached 130,000. Last year, a survey from food and beverage research firm CGA found that 35% of adults of drinking age in the U.S. Abstained from alcohol for the whole month of January, up from 21% the year before. 

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How New York’s Liberal Cannabis Smoking Laws Are Changing One Upstate Coffee Shop

Cannabis and coffee shops will always be linked thanks to the culture cultivated in Amsterdam, the capital of the Netherlands, which for decades was the only place on the planet people could use cannabis legally. As legalization normalizes, so too does social use, however, due to the patchwork of laws throughout the U.S., social cannabis use policies vary from state to state.

Upstate New York is an odd place. It’s mostly Republican-leaning, save for the college towns and liberal enclaves. However, the passage of adult-use cannabis laws statewide has led many residents – including those right-leaning residents – to grow their own cannabis. Of course, there is no firm number on how many residents are growing their own (home cultivation wasn’t technically legal until the first state-approved dispensary opened their doors, which occurred in New York City last month) but the legalization reforms have led more traditional businesses to dip their toes into the cannabis space – which is what brought me to the Koffee Kat in Plattsburgh. 

Plattsburgh is a college town – it’s where I teach communications classes. It’s the largest city in the region with a population of about 19,000 full-time residents (2021) with about 4,300 undergraduate students enrolling each semester. (Yes, I am aware that there is likely some crossover between full-time residents and students, but from my five years at SUNY Plattsburgh, I can safely say there’s not a lot of crossover.) Plattsburgh is home to the region’s only medical cannabis dispensary, Curaleaf, but many North Country residents are able to buy cannabis legally about an hour away on the Saint Regis Mohawk’s Akwesasne reservation. 

The Koffee Kat does not sell THC-rich cannabis products but does offer CBD as an add-on to their various beverages – which in New York requires a retail CBD license. But that’s not what brought me to the shop on a cold Thursday in January. What brought me to the Koffee Kat was that they recently began allowing cannabis consumption on their open-air back deck. 

I like decks. I like cannabis.  

The Koffee Kat was owned by Durgan Zappala’s mother for 28 years before she sold the business to Zappala and his wife, Julie Merritt, in October. They talk about the shop as if it’s a person rather than a business. This incarnation of the Koffee Kat has been at its current Margaret St. location since 2007. Margaret St. is like Plattsburgh’s main street, pocked with small, independent shops, restaurants, antique stores, and holistic shops. Merritt and Zappala said they didn’t do much to the façade of the business or its interior design once they took over, except adding designated spots on the wall for local artists and artisans, allowing them to paint the space or decorate their reserved spot as they wanted.

In New York, cannabis consumption is allowed anywhere that tobacco use is permitted, which has given some businesses a bit more latitude than those in other states. Zappala, 27, told me that it was a joint decision to allow cannabis use on their back deck, while Merritt, 28, explained that neither the city nor state required them to have a permit for such activities. No other business in Plattsburgh is allowing cannabis use on their property, as far as I can tell — at least not in a forward-facing way.

Zappala said he believes that allowing people to consume cannabis on their porch may “inject youth” into the business and that there has been an uptick in business since they started (publicly) allowing people to consume cannabis on-site a couple of months ago.

“We just wanted to come up with cool, and progressive, [politically correct] ideas. I mean, the canna-culture has been so underground for no reason for so long.” — Zappala, in an interview with Ganjapreneur 

Both Zappala and Merritt have previous experience in the cannabis-adjacent smoke shop sector, managing a small chain of local shops for the past eight years. They’ve used those connections with local smoke shops for a promotion that gives people a 15% discount if they come in with a new piece purchased from a partnering shop.

“Coming out of that, it’s like, ‘Why is this not normalized?” Zappala said. “So, why not just open the back and promote CBD? No one else is doing that, there’s just a lot of bars around town.” 

At first, New York’s CBD regulations caused a bit of confusion for the couple. When they first started offering CBD mix-ins for beverages, they would add tincture directly into the customers’ drinks; however, under the law that practice is technically manufacturing and would require a different license, Merritt explained. So, the couple pivoted and now provide customers with a small, pre-packaged, CBD tincture that the customer can mix in themselves – basically, Koffee Kat is selling a retail CBD product and the customer can do with it what they please. Merritt said the CBD add-on is most popular when there are events in the evenings. 

“We’re looking into CBD flowers and CBD honey and things like that,” Merritt said, “but it’s hard because not everyone who wants a pre-roll wants it to be CBD, so I don’t know if selling CBD buds is the right move for us yet.” 

The consumption area, the back deck, is the direct result of New York’s liberal public consumption rules, or lack thereof, contained in the state’s legalization bill. It’s open-air, not public-facing, and private property, which means as long as the Koffee Kat is not selling or giving away THC-rich cannabis, or serving alcohol, they can allow people to bring their own cannabis products and consume them in the space – which I promptly did.  

Here’s the thing – I’ve always been a little brazen with cannabis. Once my home state legalized use and was like, basically, ‘smoke wherever you want’ I was lighting up in grocery store parking lots. Students openly smoke joints in the designated smoking areas on campus (I haven’t quite gone that far but as a tobacco smoker, I see it). So, for me, it’s not like smoking a joint on a patio is a revelation; however, many people are not as brazen as I am and would prefer a chill place to smoke a joint out of public view.  

“We told the city of Plattsburgh that we were going to allow people to smoke weed here and that we were going to be a ‘cannabis café,” Merritt said. “They said ‘okay.’ … We went to the police, because that was another concern, and I don’t want my customers leaving here and getting harassed by police officers, and they were cool with it.” 

The Koffee Kat, Merritt explained, has always served as a “safe space” for the community – accepting of everybody – which did cause a bit of hesitation for the couple because, for example, how can one be a safe space for recovering drug addicts but allow people to consume cannabis simultaneously? 

“But it’s not like coming to a bar, you know what I mean?” she said. “It still allows people a place to come, be a community, and socialize without alcohol or hard drugs.” 

“It’s still the Koffee Kat,” Merritt explained. “You can still come and, you know, do a kid’s recital, play chess, or come hang out without smoking.” 

The coffee shop turns into the ‘cannabis lounge’ at 5:00 pm, marked by a dimming of the lights, which changes the ambiance. They also hold events geared toward a cannabis-friendly clientele, including open mic nights and EDM nights with DJs in the street-facing windows. Those events are in addition to their more community-focused events, such as indigenous awareness and visibility.

Businesses offering cannabis-friendly spaces, like the Koffee Kat, are likely going to proliferate in upstate New York, in part because of this generation of entrepreneurs who want to see the ‘cannabis is bad’ paradigm shifted. In Plattsburgh, business owners might see the quarter-century old city staple, and its new owners, blazing that trail and seek that first-mover spike in traffic. 

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Medical Cannabis Grows Targeted in String of Oklahoma City Burglaries

Oklahoma City police are investigating a string of burglaries at cannabis grows in the area, KFOR reports. Authorities said that since January 1, there have been six incidents targeting grow sites.

MSgt. Jennifer Wardlow, with the Oklahoma City Police Department, described the situation as “Basically a crime spree that these individuals had been on for a period of about three or four days.”

Police are seeking two suspects they say were caught on camera on January 8 trying, and failing, to break into a cannabis cultivation business. The suspects then allegedly stole two vehicles from separate locations in Oklahoma‘s capital, which they are accused of using in six more burglaries across Oklahoma City, Wardlow said. The suspects are also accused of a burglary in Newcastle.

The burglaries targeting cannabis grows come on the heels of a string of burglaries targeting cannabis dispensaries last May when at least three dispensaries were targeted in Oklahoma City, KOKH reports.

Last November, an armed security guard at Oklahoma City’s Mango Cannabis dispensary shot and killed an armed individual that was trying to commit a robbery, according to KOKH.

Cannabis dispensaries are often targeted because they typically house a lot of cash due to federal law making it difficult, or impossible, to open bank accounts due to cannabis’ status as a Schedule I drug.

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Kentucky Gov.’s Medical Cannabis Executive Order Creates Patchwork of Hospital Policies

Kentucky Gov. Andy Beshear’s executive order allowing people with a physician’s recommendation to use and possess legally purchased medical cannabis has led to a patchwork of policies by the state’s hospitals. In interviews with LEO Weekly, two hospital networks said they have developed blueprints for their providers to make recommendations for patients while two indicated they would not develop plans. 

Michael Newkirk, vice president of Baptist Health Medical Group, told LEO Weekly hat the governor’s order has “presented some interesting conundrums” for the hospital “to be able to solve” through their providers. The hospital, which owns seven hospitals in Kentucky, has created a template for a document that Newkirk said “satisfies the governor’s requirement for the medical condition statement so [they] have less variation around” what providers give to patients. 

“The governor’s approach to this doesn’t legalize marijuana. It doesn’t make it a medical marijuana prescription, so we’ve really had to work with our physicians on how to approach this with their patients.” — Newkirk to LEO Weekly

The hospital’s providers also advise patients that cannabis remains outlawed in Kentucky, and they could still face negative ramifications from drug tests or child custody cases.

Maggie Roetker, director of public relations for Norton Healthcare, which has five hospitals in Louisville, told LEO Weekly that the network would issue paperwork to patients that complies with Beshear’s order. 

“Our main goal, as always, is to ensure our patients receive the care they need,” she said. “This executive order is similar to other situations that require verification of a medical condition.” 

David McArthur, director of public relations for UofL Health, in a statement to LEO Weekly said the hospital “cannot recommend that its providers certify patients for the use of medical cannabis at this time.” McArthur said the decision was “based on scientific literature” but that “the ultimate decision on whether to provide certification is up to each provider.”  

“UofL Health trusts its providers to make the best decisions for each individual patient,” he said.  

Allison Perry, spokesperson for the University of Kentucky’s medical campus in Lexington, said medical cannabis “is not part of the treatment protocol … at UK HealthCare.”  

“Because medical cannabis products are not [Food and Drug Administration]-approved, physicians cannot prescribe medical cannabis,” she said. 

Under the executive order, individuals with one of the 21 qualifying medical conditions are proactively pardoned for possessing up to eight ounces of cannabis as long that it is purchased in another state and the person has a receipt for the purchase and a written certification from a doctor. 

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Report: Delta-8 THC Generated $2B in Revenue Over Last Two Years

Delta-8 THC products generated nearly $2 billion in revenue over the last two years, according to a white paper from Brightfield Group, a cannabis analytics firm.

According to Brightfield, 35% of CBD consumers have purchased some hemp-derived, psychoactive cannabinoid product within the last six months, and another 23% of cannabis consumers in states that allow access to delta-9 products are likely to purchase delta-8 products in the future.

“Consumers are interested and willing to experiment, so they may move more toward Delta-8 as time passes, especially if the price differential continues to make it more appealing.” — Brightfield Group, “How Big of a Threat is Delta-8?”

The report indicates that online CBD purchases peaked in November 2020 and have experienced a sharp decline in the following months – 53% from the fourth quarter of 2021 to the third quarter of 2022. ). The decline in online sales coincides with a 42% increase in purchases at vape and smoke shops purchases over the same period.  

“This channel offers consumers more exposure opportunities to hemp-derived THC products,” the report states. “With 64% of CBD users saying they use cannabis at least a few times a year, these consumers are definitely open to THC and potentially shifting some consumption in that direction, especially in non-adult use THC markets.” 

Brightfield suggests that delta-9 businesses have three options: “beat them, join them, or ignore them.” The paper suggests that Congress could target delta-8 THC in this year’s Farm Bill but that some CBD companies are adding delta-8 to their portfolios.  

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Texas Opening Applications for More Medical Cannabis Dispensaries

The Texas Department of Public Safety (DPS) is opening an application process to license more medical cannabis dispensaries, the Dallas Morning News reports. Just three dispensaries have been licensed by the state in the past three years.

DPS officials have not indicated how many dispensaries they plan on adding and it’s unlikely a decision will be made before the summer in case lawmakers pass laws this session that change the number of dispensaries allowed, the report says.  

Wayne Mueller, the chief of DPS’ regulatory services division, said in December that opening the licensing process will allow the agency to “help us gauge what the actual interest is” by would-be operators.   

Two of the three dispensaries are now open in Austin and one in Schulenberg, which is about 100 miles west of San Antonio. In Texas, patients do not have access to traditional products, but rather those that are low in THC and high in CBD. 

Nico Richardson, the acting CEO of Compassionate Cultivation, which is one of the three licensed cannabis businesses in the state, explained that adding new licensees may be premature and may not be helpful because licensed producers can only store products in the facility where it is manufactured.

“So if I want to serve a patient in El Paso, and my facility is in Austin, I have to send a driver to El Paso to deliver the product or give it to a patient at a pickup location in El Paso,” Richardson told the Morning News. “And whatever is not picked up has to be driven back… as soon as humanly possible.”

Last November, Mueller said he expects more than 100,000 patients will be enrolled in the medical cannabis program in the next 18 to 24 months, noting that over the previous 18 months, patient registrations have increased by an average of 10% month-over-month.

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Minnesota House Committee Advances Adult-Use Cannabis Bill

The Minnesota House Commerce Finance and Policy Committee last week approved Democratic Rep. Zack Stephenson’s proposal to legalize adult-use cannabis, KARE 11 reports. The measure still has 12 House committees and a similar number in the Senate before making it to the floor of either chamber for a final vote.  

Stephenson told KARE 11 that he was “really encouraged and really positive” about how the bill moved through the committee.     

“Our goal in this bill is to foster local and small businesses to give them the tools they need to be successful, much the same way we’ve seen success in the craft industry on the alcohol side.” — Stephenson to KARE 11 

During the hearing, Republicans on the committee tried to add provisions to the legislation to allow municipalities to ban retail cannabis dispensaries or create their own licensing systems.

John Hausladen, of the Minnesota Trucking Association, testified in opposition to the reforms over road safety issues and concerns that legalization would make it harder for the trucking industry to find employees because federal law prohibits cannabis use and requires pre-employment drug screenings for industry applicants. Hausladen said he was also concerned about the lack of “reliable roadside tests to assess (cannabis) impairment.” 

The measure includes language to create an “oral fluid roadside test” pilot program which would first be used to help officials determine how many impaired drivers are on the road and whether the roadside test works.   

The bill is headed next to the House Committee on Capital Investment. 

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Oregon Issues Product Recall Over Synthetic Cannabinoids

The Oregon Liquor and Cannabis Commission (OLCC) on Thursday issued a recall of Firefly Extracts vape products over the presence of artificially derived CBN and a synthetic form of the cannabinoid CBC. Under Oregon law, inhalable products cannot contain artificially derived cannabinoids.

The products were manufactured by Plank Road Laboratories, Inc. A preliminary OLCC investigation found that more than 5,000 units of the products were manufactured between August 2021 and February 2022. The agency notes that not all of the products were distributed, and Plank Road has been cooperating with regulators to track down the distributed product.

Plank Road originally distributed vape cartridges to about 80 OLCC-licensed cannabis retailers, the agency said in a press release. About 30 retailers still have nearly 200 units on hand and Plank Road distributed at least 300 units that can be accounted for to six retailers in the general market, including four retailers licensed by the OLCC to sell alcohol.

“The OLCC discovered the prohibited additive issue during a random audit of the Cannabis Tracking System (CTS). Investigators reviewing the Firefly Extracts testing results also determined that at least three of them contained the synthetic cannabinoid CBC. Under the Oregon Board of Pharmacy standards, non-cannabis derived CBC is considered a Schedule 1 substance.” — OLCC in the January 12 recall notice

The agency is encouraging consumers who purchased the products to destroy them but indicated they have not received any health-related complaints from the recalled products.

The recalled products include Firefly branded Strain T1, Special Sauce, Hawaiian Haze, and Cherry Wife vape cartridges.

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Hawaii Could Earn $53M Per Year In Adult-Use Cannabis Tax Revenue

Adult-use cannabis tax revenues in Hawaii could reach between $34 million and $53 million annually, according to a report by the Dual Use Cannabis Task Force outlined by the Honolulu Star-Advertiser. The report comes as lawmakers will likely consider a bill this session to enact the reforms. 

Democratic Rep. Jeanna Kapela has drafted legislation to allow adult-use sales and possession which is expected to be introduced this year. 

“It is time to stop making excuses. It is time to stop playing games with the lives of Hawaii’s families who have been harmed by our state’s rabid devotion to prosecuting cannabis use.” — Kapela via the Star-Advertiser 

Cannabis legalization is supported by new Gov. Josh Green (D) but legislative leaders, including House Speaker Scott Saiki and Senate President Ron Kouchi, who are both Democrats.  

“I’m not one that’s very excited about passing marijuana legislation,” Kouchi said during the Star-­Advertiser’s “Spotlight Hawaii” program last month. “But I’m pragmatic if this is the direction of the caucus. The bill will go through if that’s what they see.” 

In 2021, a cannabis legalization bill passed the state Senate easily – 20-5 – but never received a hearing in the House.  

Nikos Leverenz, president of the Drug Policy Forum, told the Star-Advertiser that more than 1,000 arrests were made in Hawaii from 2009 to 2018 for simple cannabis possession and that Native Hawaiians are disproportionately prosecuted for drug offenses. 

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First Day Cannabis Sales in Connecticut Exceed $350K

Cannabis sales in Connecticut reached $359,130 during the first day of the market’s rollout, according to Department of Consumer Protection data outlined by CT Insider. In all, there were seven dispensaries operating throughout the state on Tuesday, the first day of adult-use cannabis in the Constitution State.  

Consumers were reportedly met with prices higher than those in neighboring Massachusetts. A review of online pricing found a 100-milligram package of gummies at a Stamford dispensary cost $40 before tax, while a similar product also containing 100 milligrams of THC cost $25 at the company’s Rowley, Massachusetts dispensary. Insider also found similar products cost $25 at a New Jersey dispensary and $35 at a Rhode Island dispensary. 

New adult-use cannabis markets usually roll out with higher-than-average prices but prices often come down and stabilize as the market matures. 

Most Connecticut dispensaries were selling 3.5-gram containers of flower for $50, which usually cost about $5 less at Massachusetts retail shops.   

Adam Wood, president of the Connecticut Cannabis Chamber of Commerce, told Insider he expects that “prices will fluctuate” as supply and demand change. Currently, there are just four licensed cultivators in the state. Wood estimates as many as 30 to more than 40 cultivators could receive state licenses. 

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Gelato Vegan Sea Salt Dark Chocolate Bars Review

I recently had the pleasure of sampling the artisanal Vegan Sea Salt Dark Chocolate Bar crafted by Gelato, the San Diego-based cannabis brand. There may be lots of infused chocolate bars out there in the universe of cannabis products but in my experience, not many are vegan. This bar was also one of the best I’ve tasted — cannabis-infused or otherwise.

The bar contains 100 milligrams of THC and is partitioned into ten 10-milligram servings. The product has a short list of ingredients and the chocolate bar tastes amazing. The THC level is baked in just right so you can easily pick the perfect dose for chilling out at home or going out with friends.

The savory dark chocolate bars come in three varieties: hybrid, sativa, and indica. I had the indica version before going to see The Smile, which led to a nice, chilled-out vibe on the light rail and a vibrant walk over to the venue, followed by an amazing show.

Gelato was started in 2022 by seasoned cannabis entrepreneurs George and Cody Sadler. The family business is founded on transparency, integrity, and accountability and strives to bring cannabis into the mainstream in their Lake Elsinore, CA dispensary with its “Candy Land-themed” wall murals and bright displays. Gelato also offers pre-rolls, 11 strains of concentrates, and a line of vape cartridges. Check their website out for more details on their offerings and where to find their products.

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Arizona Sets New Monthly Adult-Use Cannabis Sales Record

Adult-use cannabis sales in Arizona reached a new record in October 2022 – $84.5 million – while medical cannabis sales fell for the eighth straight month to $31.4 million, according to state Department of Revenue data outlined by the Arizona Mirror. Medical sales were more than $1 million less than the previous month, while adult-use sales were up more than $5 million. 

September and October marked the third and fourth time in 2022 that Arizona’s adult-use sales topped $80 million. Through October, the state collected $13.6 million in medical cannabis taxes and $22.5 million in adult-use taxes. 

Throughout October, Arizona sold $1.2 billion worth of cannabis putting sales on track to exceed the $1.4 billion in sales in 2021. Since adult-use sales commenced in the state in January 2021, the state’s dispensaries have sold $2.6 billion in cannabis products. 

As of November 2022, there were 156,647 cannabis cardholders, including patients, caregivers, dispensary agents, facility agents, and laboratory agents, according to Department of Health Services (ADHS) data outlined by the Mirror. 130,696 of the cardholders are medical cannabis patients, while dispensary and facility agent cards totaled 24, 785, the report says.  

ADHS spokesman Tom Herrmann told the Mirror the agency has seen a decrease in the number of dispensary agent cards because “facility agent cards are less expensive and can be used more flexibly.” 

In all, in November medical cannabis patients purchased 5,606 pounds of flower; comparatively, in January 2021, patients purchased 18,708 pounds of flower.     

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Study: 31% of Chronic Pain Patients Use Medical Cannabis to Manage Pain

Thirty-one percent of adults with chronic pain in states with legal medical cannabis say they use cannabis to manage their pain, according to a study published January 6 in JAMA Network Open. The study included a representative sample of adults aged 18 or older with chronic pain who lived in the 36 states with active medical cannabis programs and Washington, D.C. from March to April 2022.

Mark C. Bicket, M.D., Ph.D., from the University of Michigan School of Medicine in Ann Arbor, and colleagues used data from the National Opinion Research Center AmeriSpeak panel to assess cannabis use among 1,661 adults with chronic pain in those states and found three in 10 adults used cannabis to manage their pain, with 25.9% reporting using cannabis to manage their chronic pain in the previous 12 months and 23.2% saying they used cannabis in the previous 30 days to manage their pain.

The study found that more than half of adults who used cannabis to manage their chronic pain reported using cannabis led them to decrease their use of prescription opioids, prescription nonopioids, and over-the-counter pain medications. Less than 1% reported that using cannabis increased their use of these medications.

“The high degree of substitution of cannabis with both opioid and nonopioid treatment emphasizes the importance of research to clarify the effectiveness and potential adverse consequences of cannabis for chronic pain,” the authors wrote. “Our results suggest that state cannabis laws have enabled access to cannabis as an analgesic treatment despite knowledge gaps in use as a medical treatment for pain.”

The study was conducted with a grant from the federal National Institute on Drug Abuse.

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Minnesota Cannabis Legalization Proposal Includes Social Equity and 8% Tax

The adult-use cannabis legalization bill proposed in Minnesota would allow adults 21 and older to purchase up to two ounces of flower, eight grams of concentrates, and 800 milligrams of edibles at once and the state would impose a special 8% tax on sales in addition to the state’s regular sales tax, the Star Tribune reports. The law includes home grow provisions, allowing cultivation of up to eight plants with no more than four mature. 

The law would require the Bureau of Criminal Apprehension to automatically seal all records of low-level cannabis arrests, trials, convictions, and sentences, while individuals with cannabis-related felonies would see their cases go before a five-member Cannabis Expungement Board, which could expunge the case or resentence the offender to a low-level offense. The bill includes provisions to direct portions of the cannabis tax revenues toward community-building grants in areas disproportionately affected by cannabis law enforcement. The measure also includes social equity provisions that would give people from disadvantaged backgrounds a better chance at obtaining a cannabis business license.     

The bill would create an Office of Cannabis Management which would be responsible for licensing – in all there would be 13 different licenses, including grower, processor, retailer, delivery services, on-site consumption, low-dose edibles, and medical cannabis. 

Under the measure, employers would no longer be allowed to test for cannabis as part of the hiring process, but employers could still implement policies forbidding on-the-clock cannabis use and drug tests could still be conducted in the event of an accident or suspected consumption on company time or property. Some professions, including police, firefighters, teachers, and medical professionals, would be excluded from the ban on pre-employment testing for cannabis. 

The law would require the state’s public safety commissioner to launch a pilot “oral fluid roadside test” program to determine whether a driver is impaired by cannabis. The program would help officials determine how many impaired drivers are on the road and whether the roadside test works.    

The measure would set aside millions from the state’s general fund to set up mandatory middle school and high school drug education, which parents could exempt their children from. A district’s program would need to be in place by the 2026-27 school year and focus on “the health effects on children and adolescents of cannabis use.” The state Department of Health would also get funding to educate pregnant and breastfeeding women about cannabis use. Another $36 million over four years would be budgeted for substance use disorder treatment and prevention grants. 

The measure would also expand the number of medical cannabis producer licenses. Currently, there are just two firms allowed to produce medical cannabis for the state program.

During the midterm elections, Democrats took control of both chambers of the state legislature and Rep. Zack Stephenson is the sponsor of the legalization measure. The measure has support from Democratic Gov. Tim Walz, who said last week he is “ready” to sign a cannabis legalization bill into law.

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Adult-Use Cannabis Sales Begin in Connecticut

Adult-use cannabis sales began Tuesday in Connecticut. Gov. Ned Lamont (D), who signed the legalization bill in 2021, said the launch of the market “marks a turning point in the injustices caused by the war on drugs, most notably now that there is a legal alternative to the dangerous, unregulated, underground market for cannabis sales.” 

“Together with our partners in the legislature and our team of professionals at the Department of Consumer Protection, we’ve carefully crafted a securely regulated market that prioritizes public health, public safety, social justice, and equity. I look forward to continuing our efforts to ensure that this industry remains inclusive and safe as it develops.” — Lamont in a press release 

The state’s legalization law includes expungement for low-level cannabis convictions and reserves half of all cannabis business licenses for people from neighborhoods most impacted by the War on Drugs. Additionally, more than half of the revenue from cannabis sales will be dedicated to a new fund that will invest in those neighborhoods.    

In a statement, Lt. Gov. Susan Bysiewicz (D) said the expungement provisions will “help people regain their freedom and the opportunity to pursue the careers and jobs they rightfully deserve.”  

“An old conviction for a low-level cannabis possession shouldn’t hold someone back from pursuing their career, housing, professional, and educational aspirations,” she said. 

The Legislature-approved law also created a Social Equity Council that is tasked with ensuring the adult-use cannabis market is grown equitably. 

Connecticut imposes the state’s 6.35% sales tax on adult-use cannabis purchases along with a 3% sales tax dedicated to the city or town where the sale occurs, and a tax based on THC content that will cost approximately 10% to 15% of the sale price.  

Nine retail dispensaries opened on Tuesday in the towns of Branford, Danbury, Meriden, Montville, New Haven, Newington, Stamford, and Torrington.  

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Illinois Adult-Use Cannabis Sales Reach Record $1.5B in 2022

Illinois adult-use cannabis sales topped $1.55 billion in 2022, a new record and 12% more than in 2021 and 131% more than in 2020. There are 113 licensed dispensaries in the state.

In a press release announcing the figure, Gov. JB Pritzker (D) said that when he signed the state’s legalization law in 2019, the Administration “set out on an ambitious goal: to create the most equitable and economically prosperous cannabis industry in the nation.” Last year, the governor said, the state’s first social equity adult-use cannabis dispensaries opened their doors for business, which Pritzker said paves the way “for an even stronger 2023.”    

In all, three social equity adult-use cannabis dispensaries opened their doors in the last year, while another 189 conditional licensees are in the process of receiving their full dispensary license from state regulators. 

Mario Treto, Jr., secretary of the Illinois Department of Financial and Professional Regulation (IDFPR), noted that 2022 marked the second straight year the state’s cannabis industry has seen “record-setting growth.” 

“…We are excited for what the future holds for the most equitable cannabis industry in the country. We are optimistic the industry will only continue to flourish in 2023, as we welcome more dispensaries to Illinois.” — Treto, Jr. in a statement 

Statistics compiled by IDFPR show 2021’s sales totals were all exceeded by November 2022. In total, 36,435,129 items were sold in Illinois adult-use cannabis dispensaries last year, representing an increase of 20% from 2021. Additionally, Illinois resident sales totaled $1,073,132,436, which is an increase of almost 14% from 2021, while sales to out-of-state residents totaled $479,192,383, an increase of almost 10% from 2021.   

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Court Rules Doctor-Recommended Use of Medical Cannabis While Pregnant Not Considered Child Neglect

The Arizona Court of Appeals last week ruled that women who use medical cannabis under the care of a physician while pregnant are not neglecting their unborn child and cannot be put on a list that could limit their employment, AZ Central reports. The ruling reverses a decision by Department of Child Safety (DCS) Director Mike Faust to place Lindsay Ridgell, a former DCS employee, on the agency’s Central Registry.

The DCS Central Registry is a list of people who have been deemed to have neglected or abused their children and serves as a red flag if the person on the list seeks employment that involves children or other vulnerable populations.

Writing for the court, presiding Judge Randall Howe concluded that because Ridgell had a medical cannabis card prescribed by a doctor, her use of cannabis to counteract nausea was the same as taking any other prescription under a doctor’s direction.

Cannabis is legal in Arizona for both medical and adult use.

“Ridgell’s marijuana use was protected by the AMMA (Arizona Medical Marijuana Act), and that protection extends to prenatally exposing her infant to marijuana.” — Howe in the decision

The case stems from 2019 when Ridgell gave birth and the baby tested positive for cannabis which required the hospital to notify DCS. Under state law, a parent is considered neglectful if a child is born substance-exposed, unless the exposure occurred while the mother was under treatment by a medical professional.

DCS investigators determined that while Ridgell had a valid medical cannabis card, she did not inform the physicians that were involved in her pregnancy care about her cannabis use. They did not move to remove the child from her care but did move to place her on the registry – a listing that lasts 25 years.

Ridgell appealed the DCS decision to a state administrative law judge, who sided with her but Faust, as allowed under law, reversed that decision, saying Ridgell’s lack of communication with her other doctors made her guilty of neglect and again referred her to the registry, the report says. In her appeal, Ridgell argued the cannabis exposure resulted from a medical treatment administered by a doctor, since she received her medical cannabis card with a doctor’s permission.

Judges Brian Furuya and Michael Brown joined in Howe’s decision, and the court determined that “her marijuana use is the equivalent of taking any other medication under the direction of a physician.” The state Supreme Court has declined to hear any further challenges to the ruling.

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