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Kentucky Bill Would Outlaw Delta-8 THC Products

2/20/2023

A bill introduced last week in Kentucky would ban delta-8 THC products in the state, the Louisville Courier-Journal reports. Kentucky Hemp Association President Katie Moyer told the Journal that if the bill is approved it would “probably end Kentucky’s hemp industry as we know it.”

“We are at the point where Kentucky (hemp) farmers, processors and retailers are grasping at straws, trying to sell anything that we possibly are allowed to sell.” — Moyer to the Courier Journal

The measure is nearly identical to a bill proposed in the state last year that passed the Senate but died in the House. One of the bill’s co-sponsors, Rep. Rebecca Raymer (R), told the journal that she has concerns over the cannabinoid due to questions over potential “long-term side effects.”

“As a health care provider and a mother, I’m hopeful this bill will lead to meaningful conversations about these substances and their impact on minors and public health,” she said in a statement to the Courier-Journal.

Moyer said the legislation could lead to a ban on other full-spectrum hemp products, including non-intoxicating ones.

Gov. Andy Beshear (D) has said he would oppose a delta-8 ban. In his executive orders issued last fall that allow some people to acquire medical cannabis products out-of-state and possess them in Kentucky, he specified that delta-8 products must meet certain rules, including packaging and labeling requirements.

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New Mexico Bills Would Ban Edibles That Could Appeal to Children & Create Cannabis Education Plan

2/20/2023

Two legislative proposals in New Mexico would tweak the state’s cannabis laws, including a ban on edibles that could appeal to children, the creation of educational materials for teachers to identify cannabis products and when students consumed them, and ad campaigns aimed to prevent children from using cannabis, KOB4 reports.

The bill sponsored by Rep. Andrea Reeb (R) would prohibit edible cannabis products from mimicking the design or style of other products that are safe for children, including a ban on cartoon characters, celebrities, or other visuals commonly used to advertise to children. Andrew Vallejos, Cannabis Control Division acting director, said those rules already exist under the state’s legalization law but that the proposal would enhance those regulations.

“It’s little tweaks like that, that the industry didn’t, you know, that nobody saw the first time around. So you don’t see until you implement it. Any areas where the Legislature can clarify legislative intent, we welcome it.” — Vallejos to KOB4

The education and advertising bill, also sponsored by Reeb comes after elementary school students in the state were hospitalized after ingesting cannabis-infused candies last April.

The packaging bill was unanimously approved by the House and Human Services Committee last week. The education measure is in the same committee.

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Hawaii Senate Committees Advance Cannabis Legalization Measure

2/17/2023

Two Hawaii Senate committees on Thursday advanced a bill to legalize cannabis for adult use, KHON2 reports. The measure passed out of the Health and Human Services Committee 2-1 with two excused, and out of the Commerce and Consumer Protection Committee 3-1 with one excused.

The measure would allow retail sales to adults 21-and-older and impose a tax on those sales. Medical cannabis sales would be exempt from the cannabis excise tax. The legislation would also create the Hawaii Cannabis Authority and regulators would have to adopt industry rules by Dec. 1, 2024, begin the application process by Jan. 31, 2025, and issue licenses by Mar. 30, 2025.

Under the measure, adults would be allowed to legally possess up to four ounces of cannabis.

Sen. Joy San Buenaventura (D), chair of the Health and Human Services Committee, said the reforms would “bring about not just a triumph for individual liberties and reform of the criminal justice system, but it would also create prospects for fresh sources of income and economic advancement in the state.”

Sen. Brenton Awa (R), a member of the health committee, voted “yes” but “with reservations” due to his concern about high dispensary prices and the bill allegedly favoring commercial growers over small farms.

“The dispensaries are the problem. You go into a dispensary, I don’t know who could afford it,” Awa said during his remarks, according to a Honolulu Civil Beat report. “To me when you legalize marijuana – if I got to farm, and I’m a grower, I should be able to sell marijuana. Not, I got to go to a dispensary, get a permit and deal with all this stuff.”

The measure moves next to the chamber’s Judiciary Committee and Ways and Means Committee.

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Senate Panel Advances Bill Requiring Medical Cannabis Clinical Trials for Veterans

2/17/2023

The U.S. Senate Committee on Veterans’ Affairs on Thursday advanced a measure that would require Veterans Affairs (VA) officials to hold clinical trials investigating medical cannabis for the treatment of chronic pain and post-traumatic stress disorder, Military Times reports. The approval marks the first time medical cannabis-related legislation has been approved by the Senate panel.

In a statement accompanying the legislation’s introduction last week, committee Chairman Jon Tester (D) said it “ensures VA is listening to the growing number of veterans who find critical relief from alternative treatments like medicinal cannabis, while working to empower veterans in making safe and informed decisions about their health.”

“Our nation’s veterans deserve options when it comes to treating the wounds of war, which is why VA needs to have a better understanding of how medicinal cannabis plays a role in their healing.” — Tester via Military Times

If approved by Congress, the bill would authorize VA to implement a research plan into medical cannabis to investigate how its use could impact the quality of life for veterans. The proposed clinical trials would not only look at the impact of cannabis on specific ailments but also the effects of different forms, potencies, and methods of cannabis delivery. The bill does not specify how many veterans would be involved in the research but calls for a “large scale” study.

Sen. Dan Sullivan (R-Alaska), the bill’s sponsor, noted in a statement that “thousands of veterans” are already using medical cannabis under state-approved programs.

“…But we don’t yet have the data we need to understand the potential benefits and side effects associated with this alternative therapy,” he said.

In a statement, Jeremy Butler, CEO of Iraq and Afghanistan Veterans of America (IAVA), said that 80% of the organization’s members supported the research of cannabis for medical use.

“Since 2017, IAVA has made it one of our top priorities to empower veterans who are calling for the medicinal use of cannabis,” he said in the statement. “…Veterans consistently and passionately have communicated that cannabis offers effective help in tackling some of the most pressing injuries we face when returning from war.”

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Oklahoma AG to Prosecute Attorney Accused of ‘Ghost Owner’ Medical Cannabis Scheme

2/17/2023

The Oklahoma Attorney General’s office is taking over the prosecution of the attorney accused of helping set up illegal cannabis businesses under the state’s medical cannabis program, KFOR reports. Matt Stacy is facing 13 charges related to the scheme in which he is accused of assisting nearly 400 illegal grow operations as so-called “ghost owner.”

Oklahoma Attorney General Gentner Drummond told KFOR that Stacy’s role was not just “enabling” but that the attorney is “culpable of the crimes that were committed by his clients.”

“He was in a position of authority and power and influence. And those are the people that we need to make an example of perfect. … His impact on the state of Oklahoma is remarkable. He’s basically been the consigliere to almost 400 illegal grow operations, which covers multiple counties. He needs the full force of the law against him.” — Drummond to KFOR

The Oklahoma Bar Association told KFOR that Stacy remains in “in good standing” with the organization but Lori Rasmussen, director of communications for the association, said, “It is always concerning when an Oklahoma licensed attorney is charged with a crime.”

In a statement, Stacy’s attorney, Joe White, denied that his client had broken any of the state’s laws.

“On behalf of our clients whose operations fall under the medical marijuana laws and regulations, our firm was in regular communication with the [Oklahoma Bureau of Narcotics and Dangerous Drugs] for three years discussing the agency’s ever-changing interpretations of the statutes and rules that must be met for OBNDD licensure,” the statement says. “We have been and will continue to be extremely transparent and adaptable based on our understanding of the law and current regulations, even when we are in fundamental disagreement with some aspects of the agency’s interpretation and implementation of the licensing requirements.”

White added that they “believe strongly in the Constitutional and statutory lawmaking process” and “have always worked within the bounds of the law, as it is written when advocating and representing our clients.”

“This industry and the professionals that support it have been left to operate in a regulatory environment that is inconsistent and arbitrary,” White said. “Anytime we have taken a legal position or approach that encountered resistance we have asked for agency clarification, most times without response. Nonetheless, we have been and will continue to be transparent in all our interactions with Oklahoma’s medical marijuana regulatory agencies.”

Last summer, two other attorneys were also charged with crimes related to setting up ghost owners for medical cannabis operations in the state.

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Virginia Lawmakers Block Bill to Set Up Cannabis Retail

2/16/2023

A Virginia House committee on Tuesday tabled the bill to set up the state’s adult-use cannabis industry, effectively killing it for this year’s session, Richmond BizSense reports. The Republican-led subcommittee considering the measure voted 5-3 to “pass by indefinitely.”

Earlier this month, two separate House panels rejected bills to move the state closer toward adult-use sales. Virginia lawmakers passed adult-use cannabis reforms in 2021 – when both chambers of the legislature and the governor’s office were controlled by Democrats. The laws have since faced pushback as Republicans made gains in both chambers in 2022 and Virginians elected Republican Glenn Youngkin as governor.

The measure tabled by the subcommittee was sponsored by Sen. Adam Ebbin (D) and would have allowed the Virginia Cannabis Control Authority to begin issuing licenses for adult-use cannabis businesses on July 1, 2024.

“It is legal to possess small amounts of cannabis, it is legal to grow your own cannabis. Yet we are kind of dragging our feet on establishing a retail market that could provide hundreds of millions of dollars in tax revenue, could provide a tested product for adults and could be kept out of the hands of children.” — Ebbin via BizSense

The measure passed the Senate on a 24-16 vote last week.

Currently, adults 21 and older in Virginia can possess up to an ounce of cannabis, grow up to four plants, receive cannabis as a gift, or buy it from a medical dispensary.

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Halo Infusions Announces Plans for Arizona’s Largest Dedicated Cannabis Kitchen

2/16/2023

Tucson, AZ, February 16th, 2023 – Halo Infusions & Extractions, LLC (Halo Infusions), southern Arizona’s largest cannabis-infused product manufacturing operation, has announced plans for construction of the state’s largest dedicated infusion kitchen, with expectation of full production by mid-2023. The new, $2.5 million state-of-the-art kitchen will initially provide more than 7000 sq ft of manufacturing space, supporting seven separate production lines, and thousands of square feet of refrigerated storage and distribution space.

Only a year ago, as part of a $30M landmark sale of its retail and cultivation licenses, Halo Infusions spun off its infused product manufacturing business. “Selling the licenses enabled us to focus on our first true love – infused products,” said Murray Stein, CEO of Halo Infusions. “Without the distraction of the demands of retail, we felt that the ten years of infusion experience we’ve gained would prepare us for even greater opportunities.”

“This is really the original vision of our founders,” Stein related. “We are software, electronic, and optical engineers by training and vocation, so it’s easy to appreciate why we’re so formal and process-driven. We’ve always believed that we could create better infused products by applying the disciplines of science, engineering, and manufacturing that we learned elsewhere,” added Stein.

The new Halo Infusions kitchen will help realize those goals on a scale not possible until now. Plans include new automated gummie and candy lines, multiple beverage production systems, and multiple large ovens and freezers. “We’ve designed the space to employ an agile reconfiguration model that allows us to shift production lines based on our real-time needs and those of our customers,” remarked Brandon Hamm, Infrastructure Manager at Halo Infusions. “Every one of these production lines has a minimum of three stages, or as many as ten when we include product and lot packaging. Accomplishing this accurately requires that our production, packaging, and quality teams work together effectively. Scaling that model is our mission.”

Halo Infusions’ brands are among the longest available in the Arizona market and include Aunt Ellie’s, Cannabliss, Canna Confections, Chronic Health, and Pure & Simple. Soon to be released is a suite of canine pet products under the Canine CBD Therapy brand. “Our unique whole-plant approach using RSO extraction methodologies allow us to retain more of the plant’s compounds than many other approaches,” said Chad Johnson, Halo Infusions’ Infusion R&D Manager.

“Our infusion model relies on capturing minor cannabinoids, terpenes, and even flavanoids. We genuinely believe that the synergy between all of the cannabinoids and other compounds in the plant is lost when over processed or refined. Our infusion model minimizes that loss for a better product and experience,” he added.

Opportunities in the Arizona cannabis market exist are limited by the relatively small number of dispensary and cultivation licenses available through the state’s program. “Every infusion kitchen has to operate under a state-issued license.” added Hamm. “There is a lot of responsibility that comes with operating under that license. Maintaining compliance with Arizona’s strict rules requires dedicated staff and expertise. Semi-annual inspections of dispensary, cultivation, and kitchen operations determine how well the rules are adhered to, and not doing so can mean significant fines or worse. Arizona’s rigorous cannabis product testing program, now in its third year, places additional burden on operators. It is all about safety,” he said.

“We have a staff of five Quality Management & Quality Control staff, and we are still super busy,” stated Hamm. The team helped formalize a system that documents processes, procedures and responsibilities for achieving regulatory compliance, product safety and meeting customer expectations. “Every day we remind ourselves of the importance of the safety of our products. Patients and adult users alike look for consistency and quality. They don’t have to worry about the product safety because we do,” added Hamm.

While Arizona may have a limited number of licenses, it has not restricted the proliferation of new brands. “There are well over seventy-five individual infused product brands in Arizona, with more than thirty making gummies,” offered Suzy Tracy, Corporate Marketing Manager for Halo Infusions. “Many of these businesses are challenged by limited product space and operations staff. They are also at the whim of the license holder, who may not want the risk of an operation they do not fully control, using their license.” she added.

Another key factor affecting the Arizona cannabis market is the impact of multi-state operators. “MSOs like Curaleaf, Verano, and Harvest (now Trulieve) obtained their in-house brands through acquisition of the dispensary licenses they were associated with,” commented Tracy. “And while some of the brands and their products are decent quality, many are not”, Tracy added. “So we have a lot of independent brands in Arizona, some struggling in-house brands with multiple dispensary operators, and many small infusion companies hoping to build market share.”

As Halo Infusions began looking to the future, they realized that sharing their expertise and operations resources represented the greatest opportunity of all. “Our partners got together and decided that our greatest contribution to the infused product market would be to help others excel as well,” stressed Linda Bell, CFO for Halo Infusions. “Our new kitchen will enable us to do several exciting things we couldn’t before. For example, we’re planning a white label operation for smaller operators to help establish and build their own brands. And we expect to provide manufacturing facilities and support to enable independent – even currently out-of-state – brands to better penetrate this market,” Bell added.

“Using our new kitchen, our well-established current good manufacturing practices, our comprehensive testing program, and our state-wide distribution capabilities, we expect to become a real catalyst for maturity in our market,” said Bell. “It’s going to be a terrific ride.”

For additional information, the media is advised to contact:
Suzy Tracy
Halo Infusions & Extractions, LLC
Suzy.Tracy@haloinfusions.com
520-465-4966

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Ayr Wellness Hosting Expungement Clinics in Five States Next Weekend

2/16/2023

Multistate cannabis company Ayr Wellness is holding expungement clinics in five states on February 25 and 26. The Changing Legacies series is part of the company’s Corporate Social Responsibility Program and the company is partnering with community and non-profit organizations on the endeavor.

The event in Hartford, Connecticut on February 25, in partnership with Councilwoman Tiana Hercules, Lady Jane, UConn Law, and Rooted Community Education Group, will be held at Capitol Community College from 10:00 a.m. to 2:00 p.m. The Massachusetts event on February 25, in partnership with MassCultivatED, will be held from noon to 2:00 p.m. at the Connexion United Methodist Church in Somerville.

In New Jersey, the event will be held in partnership with Blaze Responsibly on February 25 at 1579 Irving Street, Rahway from 10:00 a.m. to 2:00 p.m. In New York, the event is a partnership with Center for Community Alternatives which will be held at BKLYN Commons on Flatbush Avenue in Brooklyn from 1:00 p.m. to 3:00 p.m. The Pennsylvania clinic is in partnership with Cannabis Noire and will take place on February 25 at Cedar Works, located at 4919 Pentridge Street, Philadelphia.

Participants must pre-register for the Connecticut and New Jersey events, while walk-ins are permitted at the Massachusetts, New York, and Pennsylvania clinics.

In a statement, Khari Edwards, head of Corporate Social Responsibility at Ayr Wellness, said the Changing Legacies program’s goal “is to empower those most harmed by the War on Drugs with a fresh start.”

“Despite shifting public sentiment in favor of cannabis and an ever-evolving legislative and regulatory landscape, far too many individuals continue to face significant barriers to housing, employment, social services and more because of non-violent cannabis convictions.” — Edwards in a press release

Each expungement clinic will provide attendees with access to legal services, connect individuals with re-entry and wrap-around programs and, where applicable, offer financial support for obtaining critical documentation and processing fees.

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Report: Half of Wisconsin Residents Live Within 75 Minutes of Out-of-State Dispensary

2/16/2023

A new report from the Wisconsin Policy Forum found that half of the state’s residents aged 21 or older (about 2.16 million people) already live within 75 minutes of an adult-use dispensary in a nearby state and another 30% live within an hour’s drive.

“As recently as November 2019, those numbers were zero. Both Michigan (2018) and Illinois (2019) have passed laws legalizing marijuana, with Michigan opening its first recreational dispensaries in December 2019 and Illinois stores debuting in January 2020. Since then, more than 100 locations in Illinois and 600 locations in Michigan have begun sales. Meanwhile, Minnesota lawmakers have legalized marijuana for medical purposes and appear poised to approve recreational use of the drug by the end of the year.” — Wisconsin Policy Forum, “Changing Midwest Marijuana Landscape Impacts Wisconsin,” February 2023

The report notes that Wisconsin lawmakers have yet to introduce any legislation this session to legalize cannabis for any purpose, and Gov. Tony Evers (D) and Democratic lawmakers have indicated they want to legalize both medical and adult-use cannabis but no movement on the reforms is possible without the support of at least some Assembly and Senate Republicans.

Cannabis possession remains a criminal act in Wisconsin except in Madison where individuals can carry up to 28 grams, the report says. Other cities, including Eau Claire, Green Bay, and Oshkosh, have all loosened restrictions on possession in recent years. In 2021, the Milwaukee County Board of Supervisors lowered the fine for the possession of under 25 grams of cannabis and for smoking in public both to $1. However, the report notes that law enforcement officers can still choose to enforce state cannabis laws, which carry much higher fines.

“So while marijuana is not available for legal purchase in Wisconsin, it is sold at retail locations less than a mile from the state border in East Dubuque and South Beloit, Illinois,” the report says. “Meanwhile, in some Wisconsin localities it is legal to possess and consume it – but it is still illegal to do so under state and federal law. This combination of factors makes for a complicated legal and regulatory environment.”

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IndicaOnline Launches Social Equity Program to Help Promote Inclusivity and Diversity in the Cannabis Industry

2/16/2023

IndicaOnline Launches Its Social Equity Program To Help Promote Inclusivity and Diversity in the Cannabis Industry

In an effort to repair the harm caused by the War on Drugs and create an equitable ownership and employment environment, companies in the cannabis industry are coming up with offers to eligible entrepreneurs. IndicaOnline is one of the first POS software providers in the cannabis industry to launch its own Social Equity Program by offering a one-year free subscription to its Elite plan for qualified Social Equity license holders.

IndicaOnline aims to give a head start to those who may have been previously disadvantaged due to the War on Drugs or their minority status.

To be eligible for the IndicaOnline Social Equity Program, candidates must meet one or more of the following criteria:

Currently not an IndicaOnline customer;
The store is owned by a member of an underrepresented group in the cannabis industry (such as a minority, woman, or service-disabled veteran);
The store owner has had previous marijuana convictions or has been negatively impacted by the War on Drugs before state legalization but does not have a history of selling to minors or a violent criminal record;
The store currently holds a social equity license issued by a state agency.

IndicaOnline offers a range of services and solutions for cannabis businesses. The Elite plan is its most comprehensive offering, designed to help cannabis businesses thrive and grow. A one-year subscription saves companies 6000$, a significant benefit to a newly created cannabis dispensary.

Some of the benefits of the IndicaOnline Elite plan include the following:

Advanced inventory management tools, including real-time tracking and alerts for low stock levels;
A customizable point-of-sale system with support for multiple payment methods;
Advanced reporting and analytics, including sales trends, customer data, and employee performance;
Customizable marketing campaigns to help drive customer engagement and retention;
Integration with leading industry software and hardware providers.

Historical Background Of The Issue

The War on Drugs in the United States has significantly impacted communities and individuals, particularly those from minority backgrounds. The campaign began in the 1970s and aimed to combat drug abuse and trafficking. Over the years, it disproportionately affected people of color and led to disproportionate arrests and incarceration for drug offenses.

The impact of the War on Drugs has been devastating, leading to the destruction of families and communities and contributing to the mass incarceration crisis in the United States. It has also had a lasting effect on those who have been caught up in the criminal justice system, making it difficult for them to find employment and rebuild their lives after serving their sentences.

The Government Social Equity Program

Despite the negative consequences of the War on Drugs, lately, the cannabis industry has presented a new opportunity for those disproportionately affected. As more and more states legalize marijuana for medicinal and recreational use, the cannabis industry has grown significantly, providing new employment and business opportunities.

However, these opportunities have not been equally available to all, with those from minority backgrounds often being left behind. The government launched the social equity program to help social equity license holders by providing financial assistance or grants to cover the costs of starting and operating a cannabis business; This could include funding for business plan development, marketing and branding, legal fees, and other operational expenses.

In addition, the government can provide access to resources such as business development support, mentorship, and networking opportunities to help social equity license holders succeed in the industry. The government can also work to ensure that social equity license holders have access to the same opportunities as non-social equity license holders, such as by providing fair and equal access to licensing and permitting processes and implementing regulations that level the playing field for all businesses.

Conclusion

The War on Drugs in the United States has devastated communities and individuals, particularly those from minority backgrounds. Social equity programs in the cannabis industry are a way to address this imbalance and create a more just and equitable industry. Companies like IndicaOnline are taking steps to provide resources and support to individuals from disproportionately impacted communities to enter the cannabis industry. While implementing a social equity program in the cannabis industry can be complex and challenging, it is an essential step toward creating a more inclusive and diverse industry that benefits everyone.

You can apply to our social equity program here.

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Twitter Now Allowing Cannabis Ads on Platform

2/15/2023

Twitter is allowing the advertising of cannabis products on its platform, marking a departure from the social media giant’s old rules for the industry which mostly barred cannabis ads. Under the rules, businesses can only sell topical, help-derived CBD products on the site but can advertise all cannabis products as long as advertisers are “licensed by the appropriate authorities, and pre-authorized by Twitter.”

The updated rules require that cannabis advertisers “only target jurisdictions in which they are licensed to promote these products or services online,” and note that “advertisers are responsible for complying with all applicable laws, rules, regulations, and advertising guidelines” and “may not target customers under the age of 21.”

“Any advertisement for Cannabis (including CBD– cannabinoids) content that is allowed, subject to the above restrictions, must in addition:

Not appeal to minors in the creative, and landing pages must be age gated and sales must be age verified.
Not use characters, sports-persons, celebrities, or images/icons appealing to minors.
Not use minors or pregnant women as models in advertising.
Not make claims of efficacy or health benefits.
Not make false/misleading claims.
Not show depiction of cannabis product use.
Not depict people using or under the influence.
Not encourage transport across state lines.”

The policy also outlines cannabis rules for Canadian cannabis companies, requiring that the companies are licensed by Health Canada, may only promote informational or brand-preference content, may only target jurisdictions in which they are licensed to promote these products or services online, and are responsible for complying with all laws and regulations.

“In general, advertisers are prohibited from promoting cannabis content:

by communicating information about cannabis price or distribution;
by doing so in a manner that there are reasonable grounds to believe could be appealing to young persons (anyone under 18);
by means of testimonial or endorsement, however displayed or communicated;
by means of depiction of a person, character or animal, whether real or fictional; or
by presenting cannabis or any of its brand elements in a manner that associates it or the brand element with, or evokes a positive or negative emotion about or image of, a way of life such as one that includes glamour, recreation, excitement, vitality, risk or daring.”

The company indicated that its updated cannabis policies still do not allow advertisements for illegal drugs, recreational and herbal drugs, accessories associated with drug use, drug dispensaries, and depictions of hard drug use.

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Cannabis Decriminalization Bill Getting Hearing in Indiana for First Time Ever

2/15/2023

For the first time ever, a cannabis decriminalization bill is getting a hearing in Indiana’s House of Representatives, FOX 59 reports. The measure, expected to be heard today in the chamber’s Committee on Courts and Criminal Code, would decriminalize the possession of up to two ounces.

Senate Minority Leader Greg Taylor (D) told FOX 59 that he thinks lawmakers should take steps to reform the state’s cannabis policy believing that “the federal government’s going to do something.”

Indiana remains one of just a handful of states that does not allow any cannabis use and has not enacted even a low-THC medical cannabis regime.

The measure would also raise the possession limits for cannabis possession to be considered a Level 6 felony in the state from 30 grams to four ounces.

The measure includes two Republican representatives – Jim Lucas and Becky Cash – as cosponsors but does not appear to have support from Republican leadership and all three levels of Indiana’s government are controlled by the GOP. House Speaker Todd Huston (R) last month told FOX 59 that he remains “skeptical” on cannabis reforms but also recognizes “that people want to have that conversation.”

Republican leaders in the state have indicated that other cannabis-related regulations, including on delta-8 THC, could be included in that conversation.

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OLCC Director Asked to Resign Amid Claims the Agency Allowed Diversion of Rare Bourbon to Staff & Executives

2/15/2023

Earlier this month, Oregon Gov. Tina Kotek (D) asked the head of the state’s Liquor and Cannabis Commission (OLCC) to step down and last week the state Department of Justice announced it is opening a criminal investigation into OLCC officials who allegedly diverted scarce bottles of Kentucky bourbon for their own use, the Seattle Times reports.

The practice has allegedly been common at the agency during the entirety of Steve Marks’ tenure. In his February 13 resignation letter, Marks wrote that he was stepping down as requested because he believes “that the Governor is entitled to have her own management team.” His resignation takes effect today at 5:00 p.m.

Attorney General Ellen Rosenblum last week opened a criminal investigation into “the matter involving ethics violations related to the purchase of liquor by some staff of the Oregon Liquor and Cannabis Commission (OLCC) and possibly others.”

During the investigation, Marks admitted he had asked a warehouse manager to “divert warehoused liquor for his personal use” several times, and that he had specifically sought Pappy Van Winkle’s 23-year-old whiskey, according to the Times report. The suggested retail price for the rare spirit last year was $299.99; however, bourbon connoisseurs said it could sell for $2,000 to $4,000 on the illegal market. Marks and the five other officials implicated in the scheme said they had whiskey sent to a liquor store, where they purchased it and kept it for personal use or used it as gifts.

The liquor is so sought after and limited that Oregon holds lotteries for consumers. According to the OLCC, the odds of winning the lottery for the 2021 vintage of Pappy’s in 2021 was 1 in 5,373, the report says.

Chris Mayton, the director of the distilled spirits program, told the human resources investigator that he has taken orders for particular, hard to find, spirits “hundreds of times” including from state lawmakers.

In a report on the diversion scheme, Travis Hampton, a retired Oregon State Police superintendent who works for the OLCC human resource department, said Mayton had secured bottles of rare liquor for “scores of employees, from warehouse workers to executive managers,” including Marks.

Kotek has called the conduct “wholly unacceptable.”

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DEA Says Novel Cannabinoids Including Delta-9 THCO Are Illegal

2/14/2023

The DEA disclosed in a letter this week that it considers products containing novel cannabinoids such as Delta-9 and Delta-8 THCO, also known as THC acetate ester, to be federally illegal Schedule I substances even if they were sourced from hemp.

The notice was sent to cannabis industry attorney Rod Kight, who contacted the agency last August to inquire about the control status of THCO products under the Controlled Substances Act. After a follow-up email on February 7, the agency responded to Kight on Monday, stating it does not consider THC acetate ester products to be legal under the 2018 Farm Bill, which federally legalized hemp, because the novel cannabinoids can only be made via synthetic means.

“Delta-9-THCO and delta-8-THCO do not occur naturally in the cannabis plant and can only be obtained synthetically, and therefore do not fall under the definition of hemp.” — DEA, in the letter to attorney Rob Kight

In a blog post about the development, Kight said the letter confirms his concerns about “the proliferation of THC acetate ester,” which can be easily found in products sold via online marketplaces alongside other cannabinoids such as CBD and delta-8 THC.

Kight notes that delta-8 THC “falls within the definition of ‘hemp’ because it is a ‘derivative’ as set forth in the 2018 Farm Bill.”

“For this reason, many people assume that THCO also meets the definition of a hemp derivative since it is typically created from a starter cannabinoid. This is not correct,” Kight wrote. “D8 is distinguishable from THCO because the hemp plant naturally produces D8; however, it does not produce THCO. From this perspective … THCO is properly seen as synthetic THC, not ‘hemp.'”

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California Cannabis Cafes Bill Would Allow Live Performances, Food and Drink

2/14/2023

The bill that would legalize cannabis cafes in California includes provisions allowing live performances at cannabis-friendly clubs, and allowing food and non-alcoholic beverages to be served at the locations, the Los Angeles Times reports. The measure would require municipalities to opt in to allow the cafes and create their own guidelines.

Assemblyman Matt Haney (D), the bill’s sponsor, said allowing cannabis cafes is necessary if the state wants the regulated cannabis industry “to survive.” He described the businesses operating under the current system, which allows on-site consumption but no food or beverage sales, as “pretty sad places.”

“They’re losing to the illegal cannabis industry, and one thing that the legal cannabis small business can offer is an experience. Cannabis businesses told us that they may have to close their doors unless the laws change. The regulations that prohibit them from offering other products like food are a huge burden.” — Haney via the Times

Some California businesses have found workarounds to the current laws. In West Hollywood, at the Artist Tree Dispensary & Weed Delivery on Santa Monica Boulevard, cannabis-consuming customers can gather at the second-floor lounge as if dining at a restaurant and order food from Fresh Corn Grill, a restaurant that has a deal with the Artist Tree.

Lauren Fontein, a co-owner of the Artist Tree, told the Times the setup mimics “the experience of being in a restaurant” even though they don’t sell customers food.

The bill has not yet been sent to a legislative committee but a note attached to the measure indicates it could be heard by a House panel next month.

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Study: No Link Between Cannabis Legalization and Increased Psychosis-Related Health Conditions

2/14/2023

A new study published this month in Jama Network Open shows no links to an increase in psychosis-related conditions or incidents in states that have legalized cannabis for adult or medical use.

Researchers used the Optum Clinformatics Data Mart Database, which contains commercial and Medicare Advantage claims of more than 63 million unique individuals followed between January 1, 2003, and December 31, 2017. All beneficiaries aged 16-and-older with at least one month of insurance eligibility during the period were included in the study.

The study used a panel fixed-effects design. The state-month was the unit used to analyze the association of state cannabis policies with the rate of psychosis-related healthcare claims. The study authors used the number of unique claims with psychosis-related diagnoses, prescribed, antipsychotics, and enrolled individuals for each state-month of follow-up and merged the data with time-varying categorical measures of state cannabis policy level and state-level demographic, economic, and social characteristics.

The researchers found more than 7 million psychosis-related diagnoses and recorded more than 20 million filled prescriptions for antipsychotic drugs over the study period. And, during the research period, medical or adult-use cannabis reforms were approved in 29 states.

“In this retrospective cohort study of commercial and Medicare Advantage claims data, state medical and recreational cannabis policies were not associated with a statistically significant increase in rates of psychosis-related health outcomes.” — “State Cannabis Legalization and Psychosis – Related Health Care Utilization

In their secondary analysis, researchers did find that rates of psychosis-related diagnoses increased slightly among men during the study period, particularly those aged 55 to 64 years and those who were Asian, in states that permit adult cannabis use compared with states that do not.

“Results from fully-adjusted models showed that, compared with no legalization policy, states with legalization policies experienced no statistically significant increase in rates of psychosis-related diagnoses,” the authors write.

The study was conducted by researchers at the University of Philadelphia, Stanford University, and Veterans Affairs Palo Alto Health Care System.

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Massachusetts Extends Pandemic Policies Including Medical Cannabis Telehealth & Curbside Pickup Services

2/14/2023

The Massachusetts Cannabis Control Commission (CCC) has voted to extend several coronavirus pandemic-related medical cannabis policies, including telehealth consultations and curbside pickup, according to a Boston University Statehouse Program report. The initial policies were approved in March 2020 and since then 80% of first-time medical cannabis consultations were conducted via telehealth, the report says.

Even as the pandemic waned and pandemic-related restrictions loosened, the majority – 53% – of initial consultations were conducted remotely, according to CCC data outlined in the report. The agency voted to extend the telehealth policies until the end of the year.

During the vote last week, Commissioner Kimberly Roy called the extension “at odds with existing regulations.” Then-Gov. Charlie Baker (R) lifted the state’s pandemic emergency policies last spring.

“The pandemic is winding down, so we can’t just keep kicking the can. If we are voting on an extension, I hope it’s the last one and that we are able to address this in regulation at some time.” — Roy via the Statehouse Program report

Some commission members voiced concerns that extending curbside pickup rules could lead to drive-thru windows, which are not permitted under the state’s medical or adult-use cannabis laws. Currently, there are 13 medical dispensaries offering curbside pickup, compared to 30 in December 2021.

The curbside pickup policies were also extended through the end of the year.

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Ohio Bill Would Change State’s DUI Laws for Cannabis

2/13/2023

A bill proposed in Ohio would overhaul the state’s Operating a Vehicle Impaired (OVI) laws related to cannabis by eliminating the requirement that motorists be automatically charged under the law after failing a drug test for cannabis, WCMH reports. Under the measure proposed by state Sen. Nathan Manning (R), drivers could argue that despite the positive test, they weren’t under the influence and a judge or jury would ultimately determine whether to convict someone on the OVI charge.

“I think it’s time that we updated the code and look at the science behind it and make sure that we’re holding people accountable who are driving under the influence or intoxicated or high, but not holding those people that maybe have taken marijuana days or weeks earlier accountable when they’re not under the influence whatsoever.” — Manning to WCMH

Under current Ohio law, drivers can be arrested if law enforcement believes there’s probable cause for impairment, which is typically determined by a roadside sobriety test. The arrested individual then undergoes a blood or urine test, and if the sample shows a certain concentration of THC, the driver is automatically charged with an OVI.

Under Manning’s bill, laboratories would also solely screen for delta-9 THC, as opposed to existing law that looks for any trace of cannabis, including its inactive ingredients.

Criminal defense attorney Dan Sabol told WCMH that under current state law, “You’re not exactly testing to see whether someone is under the influence or not, you’re testing to see if they’ve used THC within the last week or months.”

Sabol noted that medical cannabis patients are particularly at risk under current state law because of how long cannabis is detectible in a person’s system, which he described as “inherently unfair.”

“You can get a recommendation to use marijuana to treat a medical condition – and that’s good by the state of Ohio – but if you were to drive days or weeks after, we’re gonna treat you just like the drunk driver hobbling away from the bar at 2 a.m.,” he said in the report.

The measure is currently in the Senate Judiciary Committee.

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Amsterdam Bans Cannabis Use on Streets of Red Light District

2/13/2023

Officials in Amsterdam, Netherlands are banning the use of cannabis on the streets of the red light district, CNN reports. The new policies include discouraging alcohol in the district as local leaders attempt to improve the quality of life for city residents.

“Residents of the old city center experience a lot of nuisance from mass tourism and alcohol and drug abuse on the street. … Tourists also attract street dealers, who in turn promote criminality and insecurity. Especially at night, the atmosphere can become grim. People who are under the influence also stick around longer. … Residents cannot sleep well and the neighborhood is becoming unsafe and unliveable.” — The Municipality of Amsterdam in a statement via CNN

Alcohol sales in the city are already banned after 4 p.m. Thursday to Sunday and officials may take further steps, requiring alcohol to be hidden from view or removed from stores during those hours. City officials are also considering a ban on take-out purchases of soft drugs at certain times, and banning cannabis smoking at outdoor seating areas of coffee shops. There are 166 so-called coffee shops in Amsterdam, according to Health Ministry and city data.

The reforms were spurned by the “We Live Here” campaign which is meant to make visitors more aware that people live in the red light district and to take this into account, according to the campaign website. Toward the end of last year, residents of the De Wallen neighborhood launched a “stay away” campaign hoping to keep tourists out of the area.

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New Jersey Poll Finds Majority Support for Putting Cannabis Taxes Into Education

2/13/2023

A majority of New Jersians would like cannabis-derived tax revenues to be used on education, according to a Rutgers-Eagleton Poll outlined by ROI NJ. The survey found 23% of respondents preferred cannabis taxes were spent on education; 21% wanted the funds used for public and community health initiatives, including drug treatment centers; 15% said it would be spent on affordable housing development; 13% preferred the revenues were used for transportation and infrastructure projects; and 11% wanted the money used for court and prisons.

Just 4% of respondents supported using the revenue for campaigns on the dangers of substance use.

Nathan Link, assistant professor and graduate director in the Department of Sociology, Anthropology and Criminal Justice at Rutgers-Camden, one of the poll’s partner organizations, described the results as “a big deal and a needed conversation.”

“What sets this legislation apart from that of the other states that have legalized and decriminalized cannabis are the critical benefits for social and racial justice that arise from implementing a permanent funding structure that potentially targets schools, health and the well-being of people living in New Jersey’s most disadvantaged communities.” — Link via ROI NJ

Democrats and independents – 25% each – were more likely than Republicans (16%) to prefer education funding as the top priority. For Republicans, the top priority for cannabis tax revenue should be funding police, courts, and prisons (21%). Black residents (38%) polled were more likely than residents of other races and ethnicities to believe the state should primarily invest the revenue in affordable housing development.

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Kansas Bill Would Free Cannabis Prisoners and Expunge Records

2/10/2023

A bill proposed in Kansas would allow individuals to have cannabis-related crimes expunged from their records and release anyone serving probation, parole, prison or jail sentences, the Kansas Reflector reports. The measure is sponsored by House Minority Leader Vic Miller (D) and includes 24 co-sponsors.

“It doesn’t legalize it per se, but it eliminates the serving a sentence punishment. … This is sort of a backdoor way of relieving people of the penalty. And in and of itself, it would save in my mind, probably tens of millions of dollars related to those prosecutions in those incarcerations.” — Miller to the Reflector

Kansas is one of four states where cannabis remains outlawed for any purpose. If approved, the measure would take effect July 1. The state is bordered by Missouri and Colorado, which both allow adult-use cannabis access, and Oklahoma which allows medical cannabis in one of the U.S.’s most permissive programs.

Kansas House lawmakers approved a medical cannabis bill in 2021 but the measure died in a Senate committee.

The cannabis penalty reform bill has been sent to the House Corrections and Juvenile Justice Committee. Committee Chairman Rep. Stephen Owens (R) told the Recorder that he needed to review the bill before making any comments.

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Canopy Growth Announces Layoffs and Facility Closure

2/10/2023

Canadian cannabis company Canopy Growth on Thursday announced staff reductions of about 60%, including 800 positions, of which 40% were cut immediately. Canopy said it also plans to shut down its Hershey Drive facility in Smith Falls, Ontario.

The moves are part of a cost reduction program that will save the firm between $140 million to $160 million over the next year.

In a press release, CEO Dave Klein said Canopy was transitioning to an “asset-light model and significantly reducing the overall size” of the organization.

“Canopy must reach profitability to achieve our ambition of long-term North American cannabis market leadership. … These changes are difficult but necessary to drive our business to profitability and growth.” — Klein in a statement

The company said the transition to the asset-light model includes third-party sourcing for cannabis beverages, edibles, vapes, and extracts.

In a statement, CFO Judy Hong described the plan as a “right-sizing” of its Canadian business which is “expected to significantly reduce” Canopy’s cash costs.

“Canopy is firmly on the path to deliver at least quarterly breakeven adjusted EBITDA in our Canadian cannabis business in fiscal 2024,” she said, “even at current revenue run-rate.”

Canopy indicated that the company’s net revenues declined 28% in the third quarter of the year versus the third quarter of last year. The decrease, the company said, is “primarily attributable” to increased competition in Canada’s adult-use cannabis market, the divestiture of C3 Cannabinoid Compound Company GmbH, a decline in its U.S. CBD business, and “softer performance” from Storz & Bickel and This Works.

“When adjusting for both the impact of the divestiture of C3 and our Canadian retail business, revenues for the period decreased 23% in Q3 FY2023 versus Q3 FY2022,” Canopy said.

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CAKE Arrives in Arizona, Confirms “She Does Hit Different”

2/09/2023

Phoenix, AZ — Highly sought-after California cannabis brand CAKE She Hits Different has announced its partnership with Atlas Street Ventures to bring CAKE to the Arizona recreational market, the brand’s third national market.

Many have heard the name, but you may not know their background. Here’s the brief: CAKE’s founders have over three decades of combined experience in the industry including award-winning cultivation, boutique extraction methods, engaging brand design, and an acute pulse on the cannabis market. Their ability to rapidly evolve and innovate beyond the status-quo has established CAKE as a leader in the cannabis industry.

“We are so excited to launch CAKE in Arizona with our partners at Atlas Street Ventures. The ASV team shares our passion and commitment to delivering the CAKE quality products and unforgettable experiences that we are known for. Their genuine love for the CAKE brand and culture makes them the perfect partner to roll out CAKE in one of the strongest cannabis markets in the country. Expect to see big things from us!” Chloe, Co-Founder of CAKE She Hits Different.

CAKE’s signature line of Cryo-Cured Resin Pods are now featured in over 35 retailers across the state and set to be in over 100 by summer. As a lifestyle brand, the CAKE experience goes far beyond the dispensary and Arizona can expect the company to deliver unique events centered around music, cannabis, and fashion that bring together the community.

“Working with CAKE ‘She Hits Different’ is a dream come true. The CAKE team is obsessed with curating the ultimate customer experience and they never stop innovating. We are just getting started in Arizona but early retail partner sell through is greatly exceeding expectations. The excitement around the CAKE launch in Arizona is like nothing we have ever seen.” — Kent Haehl, President of Atlas Street Ventures AZ.

To celebrate their Arizona launch in proper CAKE style, they will be co-presenting sponsor of “Stoner Bowl 2023” on Sunday, February 12th. Stoner Bowl is a first of its kind industry-only private consumption event held on Super Bowl Sunday, and produced by craft cannabis company Sonoran Roots.

CAKE CryoCured Resin Pods are now available at premium retailers across Arizona.

Available Now:
-All Greens
-Debbie’s (All Locations)
-Saints
-Prime Leaf (All Locations)
-Ponderosa
-AZ Natural Concepts
-Phoenix Relief Center

Available February:
-Zenleaf (All Locations)
-Herbal Wellness Center (All Locations)
-Local Joint
-Arizona Cannabis Society
-The MINT (All Locations)

For more information about CAKE She Hits Different please visit the company’s website at shehitsdifferent.com.

About CAKE She Hits Different
Founded in 2019, CAKE is a multi-state woman and BIPOC-owned lifestyle cannabis brand offering innovative cannabis products, street wear apparel, and exclusive events. From their cryo-cured resin vapes to small batch indoor flower, CAKE is dedicated to offering the highest quality and most innovative cannabis products in the industry.

About Atlas Street Ventures
Atlas Street Ventures is a licensed cannabis product manufacturer, distributor, and innovator that brings best in class cannabis brands to market directly or through co-packing partnerships.

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Historical Background Of The Issue

The Government Social Equity Program

Conclusion

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