New Hampshire Senate Votes to Study Legal Cannabis Sales Through State-Run Shops

5/19/2023

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The New Hampshire Senate on Thursday voted to create a commission to study cannabis legalization after Gov. Chris Sununu (R) said he would back the reforms if sales occurred in state-run dispensaries, InDepthNH reports. The amendment to create the commission was included in a bill to expand the definition of who can enroll in the state’s medical cannabis program and passed the chamber on a voice vote. 

The New Hampshire House last month passed a broad cannabis legalization bill but the Senate rejected the measure last week. The day after the Senate vote, Sununu appeared on WMUR’s CloseUp and said he would sign a cannabis legalization bill that includes a sales structure through state-run shops, similar to how the state sells liquor. In the interview, he described cannabis legalization in New Hampshire as “probably inevitable in some way or form.” 

The commission would be tasked with studying the feasibility of establishing a state-controlled system to sell cannabis. It would explore how to keep cannabis away from kids and out of schools; how to control marketing and messaging cannabis sales; how to allow local control; and how to reduce multi-drug use. 

The commission would also seek to prevent so-called “marijuana miles,” which Sununu blasted in the interview with CloseUp as “pot shop, after pot shop, after pot shop,” in Maine and Massachusetts. 

The commission would also determine how to allow adult-use sales and not impose additional taxes.    

The first meeting of the commission would be held within 45 days of the bill’s passage and a final report would be due by December 1, 2023. 

The measure still requires House approval before moving to Sununu for final approval. 

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Judge Tosses Humboldt Class Action Lawsuit Against County’s Cannabis Cultivation Fines

5/18/2023

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A U.S. magistrate judge has thrown out the class action lawsuit filed by landowners in Humboldt County, California who claimed the county fined them hundreds of thousands of dollars – without an investigation or opportunity to defend themselves – for allegedly cultivating cannabis without a permit, Courthouse News reports. The five landowners filed the lawsuit in October 2022. U.S. Magistrate Judge Robert M. Illman dismissed the lawsuit in full and did not give the plaintiffs leave to amend.

“Despite the FAC’s length, overlooking its irrelevant content, and its conclusory and implausible assertions – and in light of the materials of which the court is taking judicial notice – it becomes clear that the underlying facts do not, and simply can not, entitle these plaintiffs to any relief against these defendants.” — Illman, in the order, via Courthouse News

The plaintiffs claimed after California legalized cannabis for adult use, the county created an abatement program to fine landowners that have “committed traditional nuisances and permitting violations” to grow cannabis without a permit. However, the plaintiffs argued the county blindly correlates code violations with the assumption of cannabis cultivation which exponentially increases the fines from initial violations. The plaintiffs also claimed that the county based some of its allegations of illegal cannabis farming off “crude arial images” without probable cause.

One of the plaintiffs claimed he was fined $90,000 for growing cannabis but he was actually growing vegetables for his restaurant. Illman ruled that the county had actually dropped most of his fines about a week before the class action lawsuit was filed.

In the dismissal order, Illman used the term “implausible” to describe the plaintiff’s claims about 20 times. In an interview with Courthouse News, Jared McClain, the attorney for the plaintiffs, of the Institute of Justice, argued that the lawsuit “didn’t allege anything” that they “weren’t going to be able to prove a trial” and that the county “doesn’t even deny” a lot of what is alleged in the complaint.

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Oregon Cannabis Businesses Must Now Prove Tax Compliance Before Licensing Process

5/18/2023

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Oregon Gov. Tina Kotek (D) on Tuesday announced that anyone seeking to open a cannabis dispensary in the state will be required to prove they’ve paid their state taxes before receiving a license or having an existing license renewed. 

Data from state Department of Revenue shows that cannabis retailers have a higher non-compliance rate in Oregon for payment of taxes (9%) than other tax programs administered by the agency (3%). The Oregon Liquor and Cannabis Commission (OLCC) has indicated that there are approximately 823 licensees that would need to obtain the tax compliance certificate in any given year. 

The change comes following reports that embattled cannabis company La Mota was allowed to expand across the state while owing more than $1.5 million in unpaid state taxes. La Mota is the company that had employed former Secretary of State Shemia Fagan as a business consultant. Fagan ultimately quit the consulting gig and resigned as secretary of state.  

In a statement, Kotek said the new rules “will help ensure that all businesses are operating under the same rules and not getting any competitive advantage if they haven’t paid their taxes.”  

“I’m grateful to the current leadership at the OLCC and the Department of Revenue for working collaboratively to resolve this long-standing need for equivalent tax compliance across cannabis and liquor sectors.” — Kotek in a press release   

Kotek is one of two government officials, along with Fagan, named in a letter sent to U.S. Attorney for Oregon Natalie K. Wight by two state lawmakers who are asking Wight to open a formal investigation into corruption in the state capitol related to campaign donations from cannabis operators in the state. The letter offers no evidence of wrongdoing by the governor or others named in the report but claims the officials accepted “large cash (campaign) donations” in excess of $10,000 from “federally illegal drug operations.”   

In a statement, Craig Prins, OLCC interim executive director, described Oregon’s cannabis industry as “important to the state’s economy.”  

“…The sales tax it generates is vital to the state’s budget,” Prins said. “That’s why it’s critically important for us to get this group of licensees into compliance and paying their fair share.” 

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SEC Fines Hemp Company $50K for Selling Unregistered Securities

5/18/2023

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A hemp company is among 10 microcap companies charged by the U.S. Securities and Exchange Commission (SEC) for offering and selling securities in unregistered offerings that failed to comply with Regulation A, which allows a limited exemption from registration under the Securities Act so that companies can raise money from the public as long as they meet specific requirements. 

Hemp Naturals Inc., a Delaware corporation based in Sunny Isles Beach, Florida, agreed to pay a $50,000 civil penalty and to cease and desist from violations of Section 5 of the Securities Act.  

According to the SEC, between December 2019 and May 2022, each of the 10 companies obtained qualification from the agency for their securities offerings using Regulation A, but they subsequently made one or more significant changes to their offerings without meeting the requirements of the exemption. The SEC found that such changes included improperly increasing the number of shares offered, improperly increasing or decreasing the price of shares offered, failing to file updated financial statements at least annually for ongoing offerings, engaging in prohibited at-market offerings or engaging in prohibited delayed offerings.  

In a press release, Daniel R. Gregus, director of the SEC’s Chicago Regional Office, said that “Companies that choose to benefit from Regulation A as a cost-effective way to raise capital must meet its requirements.”

“These actions stand as a reminder that companies which choose to circumvent Regulation A’s requirements by engaging in prohibited conduct or making fundamental changes to their offerings without qualification will face action by the SEC.” — Gregus in a statement  

According to the SEC complaint against Hemp Naturals, the company’s business plan involves selling branded CBD products and its common stock trades on the OTC Link operated by OTC Markets Group Inc. Hemp Naturals’ stock was registered under the Securities Exchange Act from February 2016 until April 2019.  

The SEC found the company sold 830 million shares, raising more than $3 million under Regulation A, despite the offerings not falling under Regulation A guidelines. 

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Sound Community Bank Offers Specialty Money Market for Cannabis Industry

5/17/2023

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May 17, 2023, Seattle, WA — Sound Community Bank’s Specialty Money Market account is now exclusively available to cannabis growers, distributors, dispensaries, and other ancillary businesses. Depositors can maximize returns with this competitive, tiered rates money market account. Visit soundcb.com/cannabis for more information.

“In this continuously changing industry, it is critical to work with knowledgeable bankers. Our seasoned bankers believe in getting to know our clients, understanding their business, and supporting entrepreneurship,” said Laurie Stewart, President & CEO of Sound Community Bank.

About Sound Community Bank
Established in 1953, Sound Community Bank is a full-service bank providing personal and business banking services in communities across the greater Puget Sound region. The Seattle-based company operates banking offices in King, Pierce, Snohomish, Jefferson, and Clallam Counties and on the web at www.soundcb.com.

For Media inquiries, please contact:
Deena Rataezyk
Vice President, Director of Marketing & Communications
deena.rataezyk@soundcb.com
(206) 204-8169

# # #

End

California Cannabis Companies Form Group to Address Industry’s ‘Culture of Nonpayment’

5/17/2023

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A cohort of cannabis industry operators on Tuesday announced a coalition that seeks to raise awareness and offer solutions to severe credit issues that threaten the industry’s stability. The Financial Stability for California Cannabis (FSCC) includes Kiva Sales & Service, Lowell Farms, Nabis Sunderstorm and other key players in California’s cannabis industry which they say comprise 45% of the state’s industry by sales volume.   

In a statement, Vince Ning, co-founder and co-CEO of Nabis, said “Collections and outstanding debt related to unpaid invoices are key challenges facing cannabis operators of all types across the state, from cultivators to manufacturers, vertical brands to wholesalers, and everyone in between.”  

“Advocacy for solutions is largely an issue siloed to individual operators or specific sectors of the supply chain, which is why we are proud to be an instrumental part of the mission of the FSCC to demonstrate a more holistic, collective representation of the severity of the debt crisis across all levels of the supply chain, and work toward a more financially stable cannabis market.” — Ning in a press release 

The group said it supports AB 776, “The Cannabis Credit Protection Act,” a California bill that aims to establish regulatory oversight around credit terms across the cannabis supply chain. 

In a May 15 letter to state Assemblymember Chris Holden, the chair of the Assembly Committee on Appropriations, the coalition said “California’s cannabis industry does not have the same oversight of sales made on terms that is afforded to other, similar consumer industries.”  

“As a result, terms of sale are not honored by some cannabis businesses, with late payment of invoices being commonplace across the supply chain and limited pathways of legal recourse for operators that owed money,” the letter states. “In some rare instances, licensees refuse to pay invoices altogether. This ‘culture of nonpayment’ that has emerged in California’s cannabis market leaves businesses across the entire industry and supply chain – as well as ancillary businesses that support legal cannabis operators – with outstanding balances and unpaid invoices sometimes totaling hundreds of thousands of dollars.” 

In a statement, Assemblymember Phil Ting (D), author of AB 766, said federal restrictions have left California cannabis operators “with limited options for financing and capital” and “has led to a severe debt bubble across the supply chain from cultivators all the way through to the retailers.” 

Ting added that the bill “aims to bring much needed financial stability to California’s industry, while also ensuring that operators receive payment for goods and services in a timely manner.” 

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New Mexico Adds Insomnia to Medical Cannabis Qualifying Conditions List

5/17/2023

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The New Mexico Department of Health on Tuesday added insomnia to the state’s medical cannabis program. Patients with insomnia will be allowed to enroll in the program beginning June 1. 

In his written decision approving the Medical Cannabis Program (MCP) Advisory Board’s petition, Department of Health Secretary Patrick M. Allen said “From a health equity perspective, medical cannabis can offer a legal alternative to the expensive medications sometimes utilized by those suffering with insomnia.”

“Even though patients may access cannabis without a medical cannabis card through the adult use program, by including insomnia in the list of qualifying conditions, patients would have increased opportunity to discuss with their medical provider how cannabis can be used to impact their insomnia and help them sleep better.” — Allen, in the decision, via a press release

Insomnia is the 30th condition approved for the state’s medical cannabis program. In December 2022, the state added anxiety to its qualifying condition for medical cannabis.

According to the National Institutes of Health, one in three adults have insomnia symptoms worldwide and about 10% are diagnosed with insomnia.

A 2016 study published by the National Library of Medicine concluded that “The consequences of insomnia are significant, such as depression, impaired work performance, work-related/motor vehicle accidents, and overall poor quality of life.”

“It is an easy-to-diagnose condition with many self-answerable questionnaires for aid,” the study authors wrote, “yet goes unrecognized in a significant number of patients coming to the outpatient department with other comorbid conditions.”

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New Mexico Supreme Court Hears Arguments on Using Alcohol Roadside Sobriety Tests to Test Cannabis Impairment

5/17/2023

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The New Mexico Supreme Court on Tuesday heard arguments about whether roadside impairment testing for alcohol can be used to check for cannabis impairment, the Santa Fe New Mexican reports. The defendant, Nina Luna, was convicted of driving under the influence and speeding in 2018 after a state police officer pulled her over in Albuquerque and determined she was driving while impaired by cannabis. 

Following the traffic stop, the officer described in his report that Luna’s eyes were red and watery and she had slurred speech and that he detected a strong odor of cannabis coming from inside her vehicle. According to the officer’s report, Luna admitted having smoked “a bowl” of cannabis several hours before driving and denied having consumed any alcohol. The officer subjected her to field sobriety tests designed to confirm alcohol impairment and arrested her after she performed poorly on some of them, the report says.

Her attorney argued to the Bernalillo County Metro Court that the officer’s testimony should be suppressed, in part because he was not a certified drug-recognition expert; the motion was denied in Metro Court and the state District Court upheld her conviction, determining “a reasonable fact-finder could conclude … [Luna] was influenced by drugs to such a degree that she could not safely operate a motor vehicle.” In 2021, the state Court of Appeals affirmed the District Court ruling.  

Luna’s attorney, Luz Valverde, argued to the Supreme Court that officers should be allowed to testify about their observations as laypeople, but should not be allowed to make statements indicating a person passed or failed a certain test or link things such as pupil size to cannabis impairment without specific training. In an email to the New Mexican, she described the case as “more about how police should testify in court than … about how they investigate suspected intoxicated drivers.” 

“New Mexico has special Drug Recognition Expert officers who are specially trained in spotting drug-impaired drivers,” she said in the email. “They are the ones who are best suited to testify about drug impairment based on specialized training, not field officers using alcohol impairment tests.” 

The court did not immediately issue a ruling. 

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Florida AG Likely to Contest Upcoming Adult-Use Cannabis Ballot Proposal

5/16/2023

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Florida’s attorney general on Monday submitted the proposed adult-use cannabis legalization measure to the state Supreme Court and seemingly signaled that she would argue the proposal doesn’t meet legal requirements to be put on ballots, WOKV reports. In the filing, Attorney General Ashley Moody wrote that she believes “the proposed amendment fails to meet the requirements” and that she planned to “present an additional argument through a briefing at the appropriate time.” 

The legalization campaign, Smart & Safe Florida, has collected more than the required number of petition signatures to trigger the state Supreme Court review and is nearing the threshold required to put the issue on 2024 ballots.  

The Supreme Court review determines whether proposed constitutional amendments are limited to single subjects and whether the proposed ballot language is clear. 

The proposal, the “Adult Personal Use of Marijuana,” would allow people 21 or older “to possess, purchase, or use marijuana products and marijuana accessories for non-medical personal consumption by smoking, ingestion, or otherwise.” 

As of Monday, the campaign has submitted 786,747 validated signatures to get the issue on ballots next year, according to the Florida Division of Elections website. The campaign needs at least 891,523 valid signatures to qualify for ballots.   

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Lobbyist Pleads Guilty to Federal Bribery Charges in Michigan Medical Cannabis Scheme

5/16/2023

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A second lobbyist last week pleaded guilty in the bribery scheme involving the former head of the Michigan medical cannabis licensing board, the Detroit Free Press reports. Brian Pearce pleaded guilty to a federal conspiracy to commit bribery charge for his role in funneling $42,000 in bribes to former Michigan Medical Marihuana Licensing Agency Chairman Rick Johnson. Johnson, a Republican, is also a former Michigan House Speaker. 

Johnson pled guilty last month to accepting $110,000 in bribes in exchange for industry licenses. John Dawood Dalaly last month also pled guilty to his role in the scheme, admitting that he had hired Johnson’s wife, Jan Johnson, as a consultant for $4,000 a month and she helped him fill out forms that would end up in front of the board that her husband chaired. Dalaly also admitted to providing at least $68,200 in cash and other benefits to Johnson, including two private flights to Canada. 

Businessman Vincent Brown has also pled guilty in the scheme. 

Pierce faces up to five years in prison and a potential fine of $250,000. Federal prosecutors have agreed to consider motioning for a sentencing guideline reduction for Pierce in exchange for his cooperation.  

None of the four men have been sentenced and all four are cooperating with the government. 

U.S. Attorney for the Western District of Michigan Mark Totten has said the investigation into the corruption scheme remains ongoing. 

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Workers at Connecticut Grow Become State’s First Cannabis Industry Employees to Form Union

5/16/2023

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A cannabis grow operation in West Haven, Connecticut on Monday became the first cannabis industry workers in the state to unionize. The 48 Advanced Grow Labs employees formed their union with the United Food and Commercial Workers Union (UFCW) Local 919.  

In a statement, UFCW Local 919 Director of Organizing Emily Sabo said the employees “came together to form their union because they believe in the cannabis industry and they know that forming their union will make their job and the industry better.” 

“We are incredibly proud of the work the Advanced Grow Labs team has done to form their union. They know that unionization is the way for workers to uplift the Connecticut cannabis industry as a whole, and create living wage jobs.” — Sabo in a press release 

Connecticut’s adult-use cannabis law requires all licensees to enter into a Labor Peace Agreement as part of the final license approval.  

UFCW Local 919 President Mark A. Espinosa said the union is “excited to bargain a contract and set the standard for all cannabis workers” in Connecticut. 

“We know there is strength in numbers, and now many workers to come will benefit from the hard work done by these workers at Advanced Grow Labs,” he said in a statement. “We encourage other cannabis workers in this state to join this important movement.” 

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Arizona to Invest $5M Into Psilocybin Research

5/15/2023

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Arizona Gov. Katie Hobbs (D) last week signed the state’s $17 billion budget bill into law; the budget includes about $5 million dedicated to whole-mushroom psilocybin research, the Arizona Mirror reports.

Renowned medical cannabis and psychedelics researcher and principal investigator at the Scottsdale Research Institute Dr. Sue Sisley — who had pushed for the funding — said the $5 million was a good starting point for medical psilocybin trials. Additionally, the funding’s emphasis on whole mushroom research makes it unique from most other studies into the medical efficacy of psilocybin because they typically isolate the chemical from its natural source.

“We’re thrilled that the research on natural mushrooms will finally be able to move forward, so this is a big achievement that finally we’re going to get objective data. This will give us reliable insight into how these mushrooms might help or harm people. We need to learn more about how this works.” — Dr. Sisley, via the Arizona Mirror

The approved budget stipulates that nonprofit and/or university researchers who ultimately receive the grants must prioritize the use of veterans, first responders, frontline healthcare workers, and people from underserved communities as trial participants, the report said.

The funding for psychedelics research was supported by bipartisan state lawmakers including Reps. Kevin Payne (R), Jennifer Longdon (D), and Stacey Travers (D), and Sen. T.J. Shope (R).

“Arizonans, especially veterans, deserve alternatives to dangerous and addictive prescriptions,” Payne said in a statement. “This bill will help.”

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Connecticut Medical Cannabis Sales Decrease for First Time Since Adult-Use Launch

5/15/2023

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Medical cannabis sales in Connecticut in April decreased for the first time since adult-use sales commenced in the state, according to state data outlined by CT Insider. Medical cannabis sales in April totaled $11.4 million, down from $12.6 million in March, but were still higher than adult-use sales in April, which reached $10.2 million.  

Adult-use cannabis sales in Connecticut commenced in January and totaled $5.1 million, while medical cannabis sales reached just over $8 million. In February, adult-use sales were just over $7 million, while medical cannabis sales totaled $11.4 million. In March, adult-use sales climbed to about $9.6 million, with medical sales totaling about $12.6 million. 

The price of medical cannabis since the launch of adult-use sales has remained stable, with an average product price of $35.68 in January, $36.11 in February, $37.06 in March, and $36.51 in April, according to state data. Adult-use prices have declined since the $44.61 average seen during the January market launch. In February, the average price was $41.82; $40.69 in March; and $39.58 in April.    

Despite the strong medical cannabis sales, patient counts are on the decline in the state. In January, there were 48,896 registered medical cannabis patients, compared to 46,048 in April. 

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Oregon Lawmakers Call for Investigating Alleged Campaign Donation Corruption by Cannabis Operators

5/15/2023

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Two Oregon state senators last week sent a letter to U.S. Attorney for Oregon Natalie K. Wight asking that she open a formal investigation into corruption in the state capitol related to campaign donations from cannabis operators in the state.  

The letter, sent to Wight by Sen. Brian J. Boquist (I) and Art Robinson (R), describes the donations made to state Sen. Rob Wagner (D), Gov. Tina Kotek (D), and former Secretary of State Shemia Fagan and others, as “large cash donations” in excess of $10,000 from “federally illegal drug operations.” 

Fagan earlier this month resigned from her position after reports emerged that she was also serving as a consultant for a cannabis company that had also contributed funds to her campaign. Fagan ultimately resigned from that position and announced a day later that she would step down as secretary of state.       

The claims in the letter hinge on a May 10 Willamette Week report that outlines the campaign donations made by Rosa Cazares and Aaron Mitchell, the operators of La Mota, the dispensary that Fagan had worked as a consultant for, to Kotek and Wagner. In all, the pair, along with a political action committee controlled by Cazares, gave more than $200,000 to top Democrats in the state, including $68,000 to Kotek, $10,000 to Wagner, and $45,000 to Fagan, the report says. The report adds that staffers picked up the cash donations.  

“As you know, federal law requires a variety of reporting for all cash transactions exceeding $10,000 inclusive of cashier’s checks, bank drafts, traveler’s check or money orders. The law has different requirements at different levels as to whom and how this illegal drug cash is reported. Then there is a combined $12,000 yearly limit reporting requirement as well. It is alleged ‘staff’ picked up bundles of cash? State employees?” — Boquist and Robinson in the letter 

While the letter names only Wagner, Koeck, and Fagan, it alleges other state senators and representatives, the state treasurer, Oregon Liquor and Cannabis Control (OLCC) commissioner, U.S. reps, the district attorney, and “partisan political groups” also received cannabis cash for their campaigns and describes the scandal as “simply the tip of the iceberg in the Legislative Assembly and Oregon State Capitol.” 

The letter also notes that the OLCC is embroiled in a scandal related to the diversion of rare Kentucky bourbon by agency officials and claims state Attorney General Ellen F. Rosenblum “is on both sides of the secret investigation” and calls for Wight to intervene in that inquiry.  

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New Hampshire Gov. Says He Would Sign Cannabis Legalization Bill With State-Controlled Sales

5/15/2023

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During an appearance on WMUR’s CloseUp, New Hampshire Gov. Chris Sununu (R) said he would support cannabis legalization in the state under state control – similar to how the state sells liquor.  

The governor’s comments came the day after the state Senate rejected a cannabis legalization measure that had been approved by the House. 

During the interview, Sununu, who has long opposed the reforms, said he is coming around on cannabis legalization because it could help “harm reduction” and noted that other states have focused on tax revenues associated with the market.   

Sununu pointed out that polls in the state show a majority of New Hampshire residents back the reforms.  

“Whether we like it or not, this is probably inevitable in some way or form. So, let’s make sure we design a system that focuses on harm reduction as opposed to profits and when you have the system like our liquor stores – which is very unique in the country, one of the only states that has that – so, therefore, we have this amazing tool to control location, to control where it is, to control how it’s marketed, how it’s distributed, keeping it away from kids, making sure we don’t add a tax to it so we can, effectively, undercut these cartels that are bringing poly drugs in, right?” — Sununu on CloseUp     

During the interview, Sununu takes aim at so-called “Marijuana Miles” in Massachusetts and Maine, which he describes as a string of “pot shop, after pot shop, after pot shop” which he says “completely changes the fabric of the town.”  

“But with a single store in a town, or a town could say ‘We don’t want it here,’ fine, we won’t put it there. Right? Just like our liquor stores do now,” Sununu said. “Again, being able to control that aspect of it I think maintains what we are in New Hampshire, maintains a place where people want to be, and it doesn’t, kind of, overcome the town so-to-say.”  

Sununu indicated that were a bill that includes the state-control model to hit his desk, he would sign it into law.

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Connecticut House Passes Psilocybin Decriminalization Bill

5/12/2023

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The Connecticut House on Wednesday approved a measure to decriminalize small quantities of psilocybin mushrooms, CT Examiner reports. Under the proposal, penalties for possessing less than a half ounce of psilocybin mushrooms would be reduced from a misdemeanor with penalties of up to a year in jail to a simple infraction with a $150 penalty for the first offense. 

The measure passed the chamber 86-64 with two Republicans backing the plan and 13 Democrats opposing it.  

Under current state law, for second offenses courts can order substance abuse treatment for a and up to three years in prison for a third. The bill would change that to a $200 to $500 fine for a second offense, and a drug education program for the third. 

During the debate, Rep. Steve Stafstrom (D) disclosed that he has a close friend that had self-medicated with psilocybin to deal with a painkiller addiction, depression, and suicidal thoughts, and credited psilocybin with saving his friend’s life. 

“What we’re saying is if those individuals are caught with this substance, rather than punishing them with a year in prison for self-medicating with this substance, we would instead give them a fine. And for a second offense, we would send them for some drug education counseling to hopefully get them the help and support they need.” — Stafstrom via CT Examiner 

In 2021, Connecticut lawmakers tasked the Department of Mental Health and Addiction Services to study whether psilocybin could have a beneficial use in health care, particularly mental health care. The agency reported that there could be health benefits to the medical use of psilocybin “under the supervision of health professionals” for substance abuse, major depression, care for end-of-life anxiety, and depression treatment. 

The measure still requires approval by the state Senate. 

End

New Hampshire Senate Votes Down Cannabis Legalization Bill

5/12/2023

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The New Hampshire Senate on Thursday voted down the House-approved cannabis legalization bill by a 14-10 margin, the New Hampshire Bulletin reports. The vote was mostly across party lines and came after the chamber’s Judiciary Committee opposed the measure as “inexpedient to legislate.” 

Democratic Sen. Lou D’Allesandro, the chamber’s longest-serving member, voted against the bill while Republican Sen. Keith Murphy voted in favor.  

“It would say to our children that marijuana is safe and could be used without harmful consequences and nothing could be further from the truth.” — D’Allesandro during Thursday’s debate via New Hampshire Public Radio 

Lawmakers opposing the measure cited the state’s ongoing opioid crisis, traffic safety, the bill’s public consumption provisions, and potential effect on children as reasons they opposed the reforms. Proponents argued that New Hampshire adults are already consuming cannabis, that legalization would lead to multimillions of dollars in tax revenues for the state, and that polling shows a majority of New Hampshire adults back the reforms – a University of New Hampshire poll from February found 71% of residents support broad cannabis legalization.  

During the debate, Democratic Sen. Becky Whitley argued that it’s “undeniable” that “youth already use marijuana” and that legalization would lead to a “decrease in that use.”

The state House has passed previous legalization bills only for them to be rejected, or not considered, by the Senate. Republican Gov. Chris Sununu has long opposed the reforms but said last year he could see signing the “right” legislation.    

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Washington D.C. Congresswoman Requests U.S. Botanic Garden Display Female Cannabis Plant

5/12/2023

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U.S. Rep. Eleanor Holmes Norton (D-DC) on Thursday sent a letter to the U.S. Botanic Garden asking that it begin displaying a female cannabis plant for the first time. In the letter, Holmes Norton said that displaying both male and female cannabis plants “would be a historic opportunity to highlight the impact of marijuana on American society and, especially, the American economy.” 

“More and more states, as well as the federal government, are beginning to legalize various forms of cannabis.  In recent years, the House of Representatives has passed several bills that would have descheduled cannabis from the Controlled Substances Act.” — Holmes Norton in the letter 

Holmes Norton had previously requested the garden display a hemp plant and notes in the letter that it had recently put that plant on display. That request was sent to the garden’s previous executive director, Dr. Saharah Moon Chaptoin. 

In the letter, Holes Norton said that in 2021, states that legalized cannabis sales collected an estimated 20% more in taxes on retail cannabis sales than on the sale of alcohol products. 

“Twenty-one states and D.C. have legalized adult use marijuana,” Holmes Norton wrote in the letter. “Cannabis sales are projected to reach approximately $33.6 billion by the end of this year and as much as $53.5 billion by 2027.” 

Holmes Norton requested that the garden’s current executive director, Dr. Susan K. Pell, respond to her letter by May 24. 

End

Lavall Chichester: Cannabis Growth Marketing, SEO, and Media Strategies

5/11/2023

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Lavall Chichester is the CEO of Growth Skills, an award-winning growth marketing agency based in New York City that specializes in developing custom, multifaceted strategies to accelerate audience and revenue growth for brands. Lavall joins us to talk about the key components to a winning digital strategy, how Growth Skills built a high-traffic website geared toward cannabis and CBD consumers, and how brands can leverage growth marketing concepts with their own websites and social platforms.

Scroll down to read the full interview below!

Ganjapreneur: Before you started working with cannabis businesses, what are some of the industries that Growth Skills has served?

Lavall Chichester: Growth Skills works in a variety of industries like finance, ecommerce, and healthcare to name a few. We found a niche helping businesses use SEO & content to rank well in highly regulated or competitive industries like gambling, sports betting, crypto and alcohol. We build publishing websites like FlavorFix.com to help us better understand and service a specific industry. Flavor Fix helps us understand the cannabis and CBD audience, attract them to the website, and then use it to connect them with our clients. It’s one thing to say you do cannabis or CBD marketing. It’s another to be able to show that our website Flavor Fix ranks for “CBD Calculator” and many of the cannabis and CBD terms that these brands should be ranking for organically on Google. Action is always better than talking.

What are some of the marketing challenges that cannabis industry brands have in common with other industries?

Regulation in advertising is one of the main challenges cannabis has in common with other industries. Pharma, gambling, sports betting, alcohol and Crypto are some industries that have heavy regulations. The difference with cannabis and CBD is that it is very difficult to run ads on Google, Facebook and some of the large platforms. You either can’t do it for certain products, need to go through a long approval process, or have to do a work around which we figure out to target the CBD audience. They won’t allow Cannabis paid ads on those platforms. They also shadow ban accounts which stops organic growth.

What are some marketing challenges that are unique to the cannabis industry?

The biggest challenge for cannabis brands is not easily being able to run paid media ads on Google, Facebook and the other platforms. This makes it hard to get in front of customers in a way that works well for brands in other industries. This will change as legalization happens. Twitter just opened up the ability to run cannabis ads and Google has created a program to allow it as well. However, to me, the restriction of paid ads is a great opportunity to leverage things like SEO, Content, organic Social, and Email Marketing to grow organically and build your own “walled garden“ with a highly niche and engaged audience and customer base.

If a cannabis brand has a very limited marketing budget, where should they invest their resources for maximum benefit to their business?

Here is the exact way we built Flavor Fix on a tiny budget. If we can do it, you can too.

SEO & Content: Brands need to double down on using Search Engine Optimization (SEO) to rank organically for keywords that potential customers are using to find information and products and services like theirs. They need to drive that traffic to their website which is an asset that they own. You don’t own your Facebook or Instagram account. They can shut it down whenever they want. Build on the assets you own. Your website should be central to your plan. Create content to target weed strains, terpene flavors, CBD products and more. You can get information on what people are searching for and how many times from tools like SEMRUSH that I discuss below.

Cannabis Focused Media Buys: Cannabis and CBD Brands need to have a budget to do on-going media buys directly with the websites that their customers visit. Everyone wants to reach the audience through Google and Facebook who don’t even have the loyalty, deep niche reach and engagement; that a lot of the cannabis and CBD sites do.

They should put a media buying budget together with a focus on creative content executions on these sites and distribution to their email lists and social channels. This should include Influencers. Don’t do this programmatically cause the Ad Blockers will waste your money and you can be way more creative with direct buys. Why run a banner ad when you can partner with a publisher and build a cool calculator like our THC Edible Dosage Calculator and use that to be useful to potential customers and capture leads.

All of this will help support your SEO & Content work and put them directly in front of people who are highly interested in cannabis and CBD.

For example Ganjaprenuer was and still is one of the sites we do media buys with and partner content for Flavor Fix.

Why?

  • Because we know people interested in cannabis and CBD go to the site and sign up for their emails.
  • We have always gotten a return on the traffic they send us because Flavor Fix is built to convert traffic to a lead or a sale.
  • Working with them sends the signal to Google that Flavor Fix is also an authority on cannabis and CBD and helps us rank better organically.

So brands should partner with cannabis and CBD publishers and make amazing content and send that traffic to their website. If the content is good people will remember the brand and come back directly to the site, so it’s also not just about tracking every click from the website to yours.

Don’t cut a media buy short cause you don’t see thousands of clicks to your site.

People don’t always click and when they come to you directly the media platform won’t get the credit even though that’s how they found your brand.

Lead Capture: Brands then need to make sure that their website is built to convert the website traffic into:

  • A free email sign up for a newsletter
  • A freemium test if their product is B2B
  • A demo if it is a B2B SaaS product
  • A sale if they are selling online
  • Get directions if they are driving to a store location

How to collect email and contact info:

  • Use your Age Gate
  • Use free ebooks
  • Use coupon codes
  • Use calculators

These are proven ways to collect emails. On Flavor Fix we use these to collect over 200 emails a week.

Email: They then need to use Email to build a relationship and increase the value of the customer. Your list should be segmented by what the people are interested in. Not everyone wants to get a full newsletter. Tailor your content to what the people are interested in.

We call this Growth Marketing. It works. This is how we grew Flavor Fix so quickly.

Here are some Flavor Fix stats:

Google Search Impressions: 75+ million (Google Organic Search)
Google Search Impressions (Monthly): 11.7+ million (Google Organic Search)
New Unique Visitors (Monthly): 72,843+
Pageviews (Monthly): 119,452+
Email Subscribers: 9,000+ (Highly engaged and segmented by Interest)
Email Click Thru Rate: 29% – 35%
Active Influencers: 25+

What are some tools or methods cannabis brands can use to track the effectiveness of their marketing efforts over time?

Google Analytics (GA): Use GA to see if you are getting more traffic to your website during the periods you are running your campaigns. Make sure to set up Google Analytics 4 since Universal Analytics will be going away soon.

Hubspot: We use Hubspot to capture leads, nurture them and grow our emails lists. This allows us to see what types of content lead to a conversion.

SEMRUSH: Use SEMRUSH or one of the other keyword tracking tools to see how your content is ranking on search engines like Google. You can get a lot of useful data to track performance and lead your strategy.

Google Search Console (GSC): This is a must have if you want to perform well organically on Google. Use this to communicate changes on your website to Google and to monitor clicks and impressions on their search engine.

Bing Webmasters Tool: Don’t sleep on Bing. You can get a lot of traffic from them. Use their Webmasters Tools the same way you use GSC.

Google Data Studio: Use Google Data Studio to pull all the other data sources into one dashboard. This way you have everything in one place. We use Supermetrics and Zapier to help with connecting different data sources.

How has Search Engine Optimization evolved over the past several years? What would you say is the most important aspect of a good SEO strategy today?

People over complicate SEO. It really comes down to three things:

Technical: Making sure your website is optimized from a technical standpoint so it can rank for keywords. This means it must load quickly, be mobile friendly, have the proper page structure and meta data on it to rank. ADA Compliance is also a huge factor that SEO helps with. Read this free guide and this other article on why it is important for the cannabis industry.

Content: You have to have highly quality content in your website and you should produce and publish it frequently. Quality means that the content is unique, useful, well written and produced. Consistency is key and calculators perform well because they have a useful function. Make sure to have multiple types of content. Articles, images, video etc. Your goal should be to create enough content on a topic to show the search engines that you are an authority on the topic.

Backlinks: The next thing is to make sure you are getting backlinks from other sites that are authoritative in your industry. A back link is when one site links to another. You need to make sure the sites are linking to your home page and other important pages and articles for specific words that you want to rank for. This has to be an ongoing thing because it builds your website’s Domain Authority and ability to rank.

The last thing here is to think holistically about search. All modern platforms like Facebook, TikTok, YouTube, Amazon etc are all search engines. Make sure you are optimizing those to show up when people search for products and services like yours.

For a retail business, how important is your Google Business profile when it comes to SEO? By comparison, how important is it to set up profiles on third-party websites like Leafly, Weedmaps, etc?

This is a great question. The only way to dominate local searches using Local SEO is to first claim your Google Business profile and update it to make sure that your business name, address, phone number and website is correct and matches your website info. Do this for every location you own. Each Google My Business profile should have a link to the location page for the dispensary or store that the page is setup for. Don’t just link it to your main domain. Once this is done, you have to go out and find other websites that have directory pages and claim those as well. This is called Citation Building. You need to build citations with general directories but also niche directories. This is why Leafly, Weedmap directories can help your local SEO rankings.

In July, Flavor Fix will be launching directory pages for all dispensaries in the U.S to help these brands rank well for local cannabis searches. Once the brands find and claim their directories they can fully optimize them and use them to help rank in local searches. We are creating our directories with SEO advice on the backend to tell the brand owners how to optimize their local directories. It’s like having a Local SEO expert built into the back end of your Flavor Fix directory and brand pages.

What direct-to-consumer marketing channels would you say are most underutilized by cannabis brands?

Good old search engines like Google and Bing and secondary search engines like YouTube. There are so many people that I meet in the cannabis industry who have no idea how SEO works and how to research and optimize articles, images, pages and videos to rank and get site traffic and sales organically. It’s a big opportunity. Search is a human behavior. When we were cave people and hungry we crawled out of our caves and searched for food. Search engines and mobile devices amplifier this behavior. So if someone wants weed or CBD they will search online for it and either buy it from whoever ranks at the top of the search engine or go to their store. Humans are also built to find the path of least resistance. They are not going to go to the second page of Google or Bing to find your website.

How do you think the marketing landscape for cannabis will change after federal legalization?

Interest in cannabis and CBD will skyrocket. There is already an enormous monthly search volume on Google for cannabis related words like the strains.

Wedding Cake Strain gets 60,500 monthly searches (726,00 a year) on Google in the U.S alone. When Flavor Fix ranked number one on Google for that term we got an average of 5,445 visits a month to the site from that one term alone. Rankings go up and down so we are working hard on SEO to claim that number one spot again. When legalization happens these searches will explode in volume and new search terms will appear. This means more opportunity to get people to your site and have them buy from you.

Also know that the new people that legalization brings to the industry don’t have any loyalty to established cannabis or CBD brands. If you rank at the top they will find you and you will be the brand they look into and start to trust.

What should brands be focusing on now so they’re well-positioned when that happens?

  1. Get a credible company to do an SEO Audit of your website and implement their recommendations.
  2. Then start researching and writing articles to target keywords that have high search volume and are relevant to your brand. Publish at least two articles a week on a topic that is relevant to your brand, products and services.
  3. Then partner with a cannabis and publisher platform and have them add your products pages that are already ranking well and have them create awesome content for you and share it with their cannabis and CBD loving audience.

Do this for a year and see how huge a difference this will make from a website traffic and revenue perspective.

Thank you, Lavall, for answering our questions! Visit GrowthSkills.co to learn more.

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New Jersey Gov. Signs Cannabis Industry Tax Reforms Bill

5/11/2023

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New Jersey Gov. Phil Murphy (D) on Monday signed a bill to allow the state’s cannabis businesses to deduct some business expenses on state tax returns, NJ.com reports. Under the law, the business subject to the corporation business tax will be allowed to deduct from income all ordinary expenses associated with managing a licensed cannabis business, including the opportunity to qualify for research and development deductions.

The legislation essentially decouples cannabis businesses in the state from federal Internal Revenue Service Code Section 280E, a 1982 provision that prohibits the standard business tax deductions for operations associated with illegal drug trafficking.

In a statement posted on Twitter, the New Jersey Cannabis Trade Association said the law allows state-approved cannabis businesses to “be treated like any other legal enterprise operating in New Jersey” and that the industry “will cherish” the “normalcy.”

“The continued implementation of 280E placed severe financial constraints on cannabis operators, big and small, by prohibiting them from deducting common business expenses from their taxes.” — New Jersey Cannabis Trade Association in a statement

Following the bill’s signing, State Sen. Troy Singleton (D), one of the bill sponsors, said the law “aims to level the playing field for all cannabis businesses.”

“It will ensure that dispensaries are paying a fair amount of taxes by taking into account critical business expenditures,” he said, “and allowing these deductions from their income.”

The law takes effect immediately and applies to taxable years beginning on or after January 1, 2023.

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New Hampshire Senate Judiciary Committee Votes to Kill Cannabis Legalization Bill

5/11/2023

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The New Hampshire Senate Judiciary Committee on Tuesday recommended the state’s cannabis legalization bill as “inexpedient to legislation,” which could doom the measure in the full chamber, the New Hampshire Bulletin reports. The party-line vote was 3-2. 

Senate Majority Leader Sharon Carson (R), the chairwoman of the Senate Judiciary Committee, told the Bulletin that while she recognizes “the diverse opinions surrounding the legalization of recreational drugs, now is not the right time for such a measure.” 

“New Hampshire, like many other states, is grappling with the devastating impact of the drug crisis on individuals, families, and communities. … We have an existing medical marijuana program that serves the needs of individuals with legitimate medical conditions. Our focus should remain on ensuring that patients have access to the care they need while also prioritizing public safety.” — Carson via the Bulletin 

State Sen. Becky Whitley (D), who voted not to kill the bill, noted that polling has found more than 70% of New Hampshire residents back the reforms, which were passed by the House in early April. 

“…I just think it’s pretty rare to have an issue or a policy that is so broadly supported,” Whitley said in an interview with the Bulletin. “And so I think not acting on that – I think sends a pretty strong message to our constituents.” 

Gov. Chris Sununu (R) opposed cannabis legalization in the state and at a press conference earlier this month suggested the state should not legalize cannabis until its other drug problems are under control. 

“You don’t legalize more drugs for money,” Sununu said during the press conference. “Like, that’s just that’s not why you do it.”  

The Senate is expected to vote on the bill on Thursday.  

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Kenosha, Wisconsin to Consider Reducing Cannabis Possession Penalties

5/11/2023

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The Kenosha, Wisconsin Public Safety and Welfare Committee on Monday passed an ordinance and resolution to reduce the fine for first-time possession of cannabis and reduce the bond for those arrested for possession, the Kenosha News reports. The measure passed the committee 3-2 and moves next to the full city council. 

If approved, adults found to be in possession of 25 grams or less of cannabis will face a citation of $1 plus the costs associated with prosecution. Currently, fines for possession range from $10 to $750. Individuals caught possessing more than 25 grams will continue to be referred to the District Attorney’s Office for state criminal prosecution. 

The resolution would reduce the bond for a first offense of cannabis possession to $62.26. Currently, the municipal bond for cannabis possession is $313. The bond would remain the same for those found consuming up to or fewer than 25 grams of cannabis while in a vehicle, possessing cannabis on school property, and for those who or are under the age of 18, the report says. 

Anthony Kennedy, one of the sponsors of the ordinance, said he believes citizens support the reforms and that they will pass the city council. He noted that the resolution and ordinance do not decriminalize cannabis but lessen the impact of getting caught possessing cannabis. 

Currently, cannabis possession is illegal throughout Wisconsin, except for Madison, which passed a decriminalization ordinance in 2020. Last November, residents in Milwaukee approved a non-binding referendum supporting broad cannabis legalization in the state. 

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Florida Passes Bill Requiring Medical Cannabis Licenses for Black Farmers

5/10/2023

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Florida lawmakers have approved a bill that would require the state Department of Health to issue cannabis licenses to Black farmers who were qualified for the licenses but ultimately left out of the final awarding of the permits, WOKV reports. In October 2021, the state received 12 applications from Black farmers to grow medical cannabis, and in September officials awarded one license to Terry Gwinn but the license has not been finalized because of legal and administrative challenges. 

The measure would require the health department to issue the licenses to Black farmers whose applications did not have any identified deficiencies, regardless of what scores they received from the private contractors that evaluated the applications. It also would require the agency to award licenses to applicants whose applications were deemed to have met “all requirements for licensure” by an administrative law judge, and the bill would give those whose applications were found deficient a 90-day “cure” period to address the problems. 

Sen. Darryl Rouson (D) said Black farmers in the state faced discrimination from state and federal agriculture officials and “from societal and business norms that their counterparts did not have to deal with.” She said it is “shameful” that the licenses were not issued six years ago “when it was directed to be issued.”  

Jim McKee, an attorney who represents Gwinn, said the bill “will prevent any further delay” in allowing his client “to immediately move forward with licensed activities upon the bill becoming law.” 

The bill moves next to Gov. Ron DeSantis (R) who can either sign it or allow it to become law without his signature. 

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Rhode Island House Approves Cannabis Advertising Bill

5/10/2023

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The Rhode Island House on Tuesday unanimously approved a bill to allow state-approved cannabis companies to advertise on billboards, the Boston Globe reports. Under the state’s cannabis legalization law, Rhode Island businesses were not allowed to advertise on billboards; however, companies in neighboring states, including Massachusetts and Connecticut, were advertising on billboards in the state.  

State Rep. Scott A. Slater (D), who introduced the cannabis legalization and advertising bills, said the state’s dispensaries were at “a serious disadvantage” because they were not allowed to advertise on billboards while out-of-state companies were already doing so. 

“Now that Rhode Island’s recreational cannabis industry is up and running, our dispensaries are facing a significant obstacle when competing with our neighbors in Massachusetts and Connecticut. … This bill will correct this inequity while also supporting these new local businesses in Rhode Island by hopefully keeping Rhode Islanders from crossing the border to shop for their cannabis in neighboring states.” — Slater to the Globe 

The bill allows the state Office of Cannabis Regulation to provide cannabis companies with forms, policies, and requirements for advertising products in the state. 

The measure still requires approval from the state Senate and by the governor.   

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