Report: Florida Medical Cannabis Patient Base Grew 25% in FY2022

11/02/2022

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According to the Physician Certification Pattern Review 2023, Florida’s medical cannabis market expanded in the fiscal year 2022, Florida Politics reports. There were 546 million ounces of cannabis sold to 757,600 qualifying patients during that time, representing a patient count increase of 25%.

Florida patients are categorized into the types of cannabis, low-THC, and high-THC, their doctor recommends, and the method of administration, either edible, inhalation, oral, smokable, sublingual, suppository, or topical. Depending on the consumption type, patients are eligible to purchase up to a 35-day or 70-day supply at a time. For low-THC cannabis, including edibles, inhalation, and oral, demand increased by 7%; sublingual increased by 8%; while suppositories and topical increased by 11%, the report says. 

High-THC cannabis administered through inhalation and oral increased by 9%, while edibles grew by 10%. Three other categories saw double-digit increases with the sublingual, suppository, and topical coming in at 11%, 13%, and 16%, respectively.   

Additionally, the Review found patients ordered 540 million ounces of smokable cannabis last fiscal year with an average purchase size of 2.47 ounces, up from 2.46 ounces in the prior fiscal year. Patients in 18 counties ordered on average the maximum amount of smokable cannabis allowed, 2.5 ounces, the report says. 

The Review found that although the number of physicians certified to recommend medical cannabis in Florida fell by 4% to 2,144, the number of physicians who used their certification rose by 4% to 1,725. On average, qualified doctors had 662 medical cannabis patients in their care; however, one doctor issued 32,686 recommendations.

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South Dakota Cannabis Advocates Seek to Determine Whether State Officials Broke Law By Speaking Out Against Legalization Measure

11/02/2022

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The organization that backed South Dakota’s successful medical cannabis initiative in 2020 has sent information requests to government offices throughout the state to determine whether officials have broken state law by publicly opposing this year’s adult-use legalization measure, Dakota News Now reports.  

Per South Dakota law, government officials may speak their opinion on candidates or ballot measures in their personal capacity but may not influence the election of a candidate or ballot initiative in their official capacity, and doing so is a felony.

New Approach SD Deputy Director Ned Horsted told Dakota News Now that the decision to press forward with the inquiry was “not an easy one.”  

“We’re submitting public record requests for multiple political officials throughout the state. And the decision to do that was not easy. These are dealing with a very powerful political establishment in the state. … However, under the South Dakota Constitution, they are not allowed to use taxpayer resources to promote a political agenda.” — Horsted to Dakota News Now 

The group sent information requests to Sioux Falls Mayor Paul TenHaken, Minnehaha County Sheriff Mike Milstead, Rapid City Mayor Steve Allender, and others. The trio was among the speakers at a press conference in Sioux Falls last week. New Approach’s information requests are seeking to see whether those officials were “on the clock” and speaking in their official capacity or using government social media pages while speaking against the ballot measure. 

The group’s inquiries were also sent to the Pennington County Sheriff’s Department; the Minnehaha County Sheriff’s Department; the Box Elder Police Department; Rapid City Mayor Steven Allender; Protecting South Dakota Kids; the South Dakota Police Chiefs Association; Jim Kinyon, executive director of Catholic Social Services; the South Dakota Catholic Association; Next Generation Leadership PAC Administrators; State Rep. Fred Deutsch; Sen. John Thune and his staff; Gov. Kristi Noem, her staff, and her Communications Director Ian Fury; State Rep. Scott Odenbach; State Rep. Doug Barthel; State Rep. Carl Perry; State Sen. Al Novstrup; Lt. Gov. Larry Rhoden and his staff; State Sen. Helene Duhamel; Pennington County Sheriff Kevin Thom; Minnehaha County Sheriff Mike Milstead; Pennington County Sheriff’s Deputy Brian Mueller; Meade County Sheriff-Elect Pat West; and Rapid City Assistant Police Chief Scott Sitz. 

TenHaken told Dakota News Now that he is protected under the First Amendment and allowed to voice his opinion on ballot measures.    

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Canopy Growth Announces ‘Fast Track’ Plan Into U.S. Market

11/01/2022

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Canadian cannabis company Canopy Growth Corporation last week announced it plans to “fast track” its entry into the U.S. market. The company said it is consolidating its U.S. assets into a new holding company, Canopy USA LLC.  

David Klein, Canopy CEO, said the strategy enables the firm to “take control” of its own destiny “and capitalize on the once-in-a-generation opportunity in the largest cannabis market in the world.” 

“We expect to unleash the full power of Canopy’s scalable and ideally-positioned U.S. cannabis ecosystem to unlock potential expansion opportunities. This strategy and positioning are true differentiators, which we expect to enable our investors and brands to realize value in the near term while positioning Canopy for profitable growth and a fast start upon U.S. federal permissibility.” — Klein in a press release 

The U.S. cannabis market is expected to reach $50 billion by 2026, according to MJBiz data outlined by Canopy. 

Canopy’s U.S. portfolio includes Acreage Holdings Inc.; the option to acquire Moutain High Products LLC and its Wana brand; and the option to acquire Jetty, a top 10 California brand. 

The firm also has the option to exercise warrants on approximately 13.7% of TerrAscend Corp.  

Constellation Brands, the spirits giant that acquired a stake in Canopy in 2017 for $190 million, said it planned to transition existing common shares ownership interest in Canopy into new exchangeable shares, which would protect “Constellation shareholder value while retaining an interest in Canopy Growth through non-voting and non-participating shares.”     

Bill Newlands, Constellation’s president and CEO, said the company believes the conversion “will maintain Constellation’s ability to realize the potential upside” of its investment in the cannabis firm. 

“At the same time, this transaction and the surrender of our warrants are expected to eliminate the impact to our equity in earnings, mitigate risk to our organization, and further reinforce our intent to not deploy additional investment in Canopy aligned with Constellation’s previously stated capital allocation priorities,” he said in a statement. 

Collectively, Canopy’s footprint currently spans 21 states, including Arizona, Arkansas, California, Colorado, Connecticut, Florida, Illinois, Maine, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, Pennsylvania, Ohio, Oklahoma, and Oregon. 

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MCBA to Hold Cannabis Industry Phone Bank In Support of Pennsylvania Senate Candidate John Fetterman

11/01/2022

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October 31, 2022 – Washington, D.C. — The Minority Cannabis Business Association (MCBA) in partnership with All-In Pennsylvania, a coordinated campaign for PA Democrats and other industry trade groups, will hold a Cannabis Industry Phone Bank this Thursday, November 3 at 5:30pm ET in support of Senate candidate John Fetterman.

MCBA is calling on all cannabis industry employees, operators and supporters to join us on Thursday as we launch a virtual kick-off for All-In Pennsylvania’s phone bank to help drive voter turnout and expand the Democratic Senate majority.

“Next week’s election will determine a lot for the future of our country, including whether we’ll be closer or farther away from 60 votes for any cannabis legislation in the Senate. John Fetterman understands the damage cannabis prohibition has brought on Black and Latino communities and will fight to right those wrongs,” said Kaliko Castille, MCBA Board President. “I encourage all cannabis industry participants and operators to support pro-cannabis candidates across the country when they go to vote next week.”

All-In Pennsylvania has phone banks operating from 9am to 9pm ET on Saturdays and 12pm to 9pm ET on Sundays. The MCBA kick-off event will inform volunteers on the phone banking protocols to engage voters. Cannabis policies are on the line if we do not support candidates that are willing and eager to expand our industry through laws that will create a robust, diverse and equitable cannabis market. Tap HERE to join the virtual kick-off via zoom.

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Minority Cannabis Business Association
Founded in 2015, the Minority Cannabis Business Association (MCBA) is the largest national trade association dedicated to serving the needs of minority cannabis businesses and our communities. MCBA represents more than 300 minority and allied cannabis businesses and industry and community leaders who share a vision for an equitable, just, and responsible cannabis industry. Our mission is carried out by a 15-member Board of Directors composed of a diverse group of industry veterans, medical and legal professionals, advocates and community leaders. Learn more by visiting our website www.minoritycannabis.org

Contact:

Kaliko Castille, Board President

kaliko@minoritycannbis.org, 503-553-9955

Precious Osagie-Erese, Communications Manager

Precious@minoritycannabis.org, 973-874-3193

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New Jersey Assembly Approves Bill to Let Cannabis Licensees Take Business Deductions

11/01/2022

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The New Jersey Assembly has passed a bill that will allow licensed cannabis businesses to deduct certain expenses from their state tax filings, Marijuana Moment reports. The law, which still needs to pass the Senate before going to the governor, is in contrast to the federal tax code known as section 280E, which does not allow companies working with Schedule I or II narcotics to take advantage of federal tax write-offs.

Sponsored by Assemblymember Annette Quijano (D), the bill passed the lower chamber 60-6 a month after it was introduced in committee. The bill dictates that the gross income of New Jersey cannabis businesses “shall be determined without regard to section 280E of the [federal] Internal Revenue Code,” the report says.

A fiscal analysis by the New Jersey Office of Legislative Services found the change may “result in an indeterminate annual loss of revenue” to the state as cannabis businesses’ tax burdens fall, and, on the provide “access to these deductions and credits may also help generate more economic activity by cannabis businesses,” while increasing revenue for “the state and local governments that tax cannabis businesses might indirectly realize an indeterminate amount of additional annual revenue.”

New Jersey passed adult-use cannabis reforms in 2020 via a legislature-approved ballot measure. It had regulations in place for the new system by August 2021 and by April 21, 2022, began selling cannabis to adults over 21.

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Another Poll Finds Majority Support for Cannabis Legalization in Maryland

11/01/2022

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Another poll has found strong support for Maryland’s cannabis legalization ballot initiative, with 63% of likely voters in a Baltimore Sun Media and University of Baltimore poll backing the reforms. The survey found that 25% of respondents opposed the reforms with 12% unsure. 

If approved by voters next week, adults 21 and older will be allowed to possess up to 1.5 ounces of cannabis and grow their own cannabis at home starting July 1, and, eventually, buy from licensed retailers. Maryland legalized medical cannabis in 2013 but the first dispensary didn’t open until 2017. 

The poll found a slight majority of Republicans approve the reforms – 54% – along with 69% of Democrats polled. The survey of 562 Democratic, 247 Republican, and 180 unaffiliated likely voters was conducted by phone and online from October 20-23. The poll has a margin of error of plus or minus 3.1 percentage points.     

A Goucher College Poll from September found that 59% of Maryland voters planned to back the reforms, with 34% opposed and 7% undecided. A Washington Post and University of Maryland poll released earlier this month found that 74% of voters said they planned to vote ‘yes’ on the legalization question with 23% opposed. 

The legalization question is set for a statewide vote after state lawmakers passed House Bill 1 in April, which created the Constitutional Amendment that voters will consider. 

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50 New York & New Jersey Cannabis Businesses Ask Chuck Schumer for ‘Restorative Justice Provisions’ on SAFE Act

11/01/2022

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A cadre of New York and New Jersey cannabis businesses last week sent a letter to U.S. Senate Majority Leader Chuck Schumer (D-NY) urging him to bring the SAFE Banking Act up for a vote and include “potential restorative justice provisions” in the bill.  

The letter, which includes 50 businesses as signatories, applauds Schumer’s leadership, along with Sens. Corey Booker (D-NJ) and Ron Wyden (D-OR), in introducing the Cannabis Administration and Opportunity Act (CAOA) but rightly warns that “the current political environment in Congress will preclude the CAOA from becoming law before the end of the year.” 

“Therefore, we ask that you champion proposals that can get the necessary bipartisan support to become law and provide small operators and aspiring entrepreneurs the relief and opportunities they need to support or launch a new cannabis business,” the businesses request in the October 28 letter. 

The signatories note that cannabis business startup costs can range from $150,000 to $2 million due to fees, real estate prices, insurance, security, and regulatory costs. Additionally, the authors state, many social equity operators are charged “exorbitant rates” from 20-40% by private investors “if they are even able to raise funds in the first place.” 

The letter contends that the lack of access to basic and essential banking services is “blunting the impact” of social equity programs instituted by some states and exposes them to security risks. 

The groups also argue that some states’ social equity programs have preconditions that are “far too restrictive” as some programs require applicants to prove they have had, or currently have, a profitable business, years of financial statements, and “other preconditions that are difficult for those with an old criminal record to obtain.” 

“While the SAFE Banking Act is not the solution to all of these issues,” the letter states, “we firmly believe that if paired with restorative justice measures that remove past convictions as a barrier, thousands of people trying to enter or survive in this industry would have a fighting chance to be successful.” 

Since Democrats took control of both the House and Senate and White House in 2020, they have been so far unable to pass any meaningful cannabis-related legislation through both chambers. Earlier this month, President Joe Biden (D) issued a pardon for federal cannabis possession cases, while urging state governors to issue their own pardons.  

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Survey: 71% of Americans Believe Cannabis Improves State Economies

10/31/2022

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A survey by Real Estate Witch found that 71% of Americans believe cannabis legalization improves states’ economies and that while just over half – 52% – of respondents would consider buying a home next to an adult-use cannabis dispensary, 69% said they would buy a home within a mile of one.

Seventy percent of those surveyed said they would pay fair market value or above for a house near cannabis-related entities, with 56% saying they would buy a home next door to a medical cannabis dispensary. 

The survey of 1,000 Americans also found 37% of respondents most commonly referred to cannabis as “weed” – the highest number – followed by “marijuana” (33%), “cannabis” (12%), “pot” (10%), “bud” (4%), and “ganja” (2%). Just 1% of respondents referred to cannabis as “herb” or “reefer,” with 0.6% calling cannabis “grass.”

Eight percent of respondents said cannabis legalization was the more important issue in the U.S. today: inflation ranked first, while LGBTQ rights were the only issue covered which ranked lower than cannabis among those surveyed. es

A supermajority of respondents said they would vote to legalize both medical cannabis (84%) and adult-use cannabis (70%). Fifty-nine percent of respondents who said they do not support cannabis legalization in any form also admitted they do not feel knowledgeable on the topic of legalization.  

Another 41% of those surveyed believed that migration would occur toward states that have approved adult-use cannabis reforms. Twenty-seven percent of respondents believe cannabis legalization increases home values where it’s legal while one in six wrongly believe legalization decreases home values.         

Less than half – 48% – of those surveyed say they strongly support expunging nonviolent, cannabis-related records of convicted offenders; however, 84% of those who say they support full cannabis legalization also support removing or expunging records of convicted offenders. That makes full-legalization supporters five times more likely than those who don’t support legalization in any form to approve of expunging records.  

Only 17% of those who don’t support legalization in any form support expunging records. 

In all, the survey found that 19% of respondents strongly supported keeping cannabis illegal at the federal level, followed by 11% who “somewhat” support keeping it illegal federally. 

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California Cannabis Industry Association Warns of Hemp-Derived Cannabinoid Dangers

10/31/2022

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The California Cannabis Industry Association (CCIA) has published a white paper that describes the national market for intoxicating hemp products as a growing public health crisis. The article, Pandora’s Box: The Dangers of a National, Unregulated, Hemp-Derived Intoxicating Cannabinoid Market, argues that while most industry stakeholders assumed the 2018 Farm Bill would regulate nonintoxicating hemp-derived cannabinoids like CBD, “loopholes in the federal definition of hemp are being exploited … to sell extremely potent, often chemically synthesized intoxicants that are more powerful than anything available in licensed cannabis dispensaries.”

When the 2018 Farm Bill legalized industrial hemp nationwide, the move not only legalized hemp agriculture but also the plant material and all of its byproducts. The issue CCIA highlights stems from a Ninth Circuit Court ruling in May that products containing delta-8 THC — a rare cannabinoid that is chemically similar to delta-9 THC, the cannabinoid most commonly associated with the intoxicating effects of cannabis, but which has been researched far less than other cannabinoids — technically meets “the statutory definition of industrial hemp.”

“Intentionally or not, the 2018 Farm Bill left the barn door open and so-called ‘hemp’ manufacturers have run right through it, creating a rapidly growing market for dangerous intoxicants.” — Tiffany Devitt, the paper’s primary author and CCIA board Vice President

The paper outlines and recommends four steps to help remedy the issue:

  1. Create a unified federal framework for regulating intoxicating cannabinoids, which would include the federal regulation and legalization of cannabis and normalizing the regulations for all plants being grown for cannabinoid content.
  2. Congressional action to close “unintended loopholes” in the Farm Bill for the unregulated sale of intoxicating cannabinoids.
  3. Action by the FDA to either approve or disapprove the commercial availability of any synthetic compounds from the plant material.
  4. Enforce state laws around the country that prohibit the sale of intoxicating cannabinoids outside of state-regulated cannabis markets.

The CCIA white paper echoes sentiments from a Project CBD special report published in June which highlighted the potential for “hidden dangers” when manufacturers synthetically alter the cannabinoids in their products.

Earlier this month, a mother in Virginia was charged with felony murder and child neglect following the death of her four-year-old in May after he reportedly ingested a “large amount” of delta-8 THC gummies. State health authorities have ruled that while accidental, “the cause of death [was] delta-8 toxicity.”

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New York Issues Retail Dispensary Guidance

10/31/2022

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New York regulators last week released regulations for Conditional Adult-Use Retail Dispensary licenses, including guidance for in-house, drive-thru, and delivery options. The rules include recordkeeping requirements and those for staffing, training, and hours of operation. 

The rules also outline packaging restrictions, prohibiting fonts and images that could be “attractive to individuals under 21,” and products with “similarities to products or words that refer to products that are commonly associated with or marketed in a manner so as to be attractive to individuals,” according to the guidance. The regulations also ban the terms “candy” or “candies,” including variants such as “kandy” or “kandeez,” unless it is a strain name or licensee’s name, entity’s name, or doing business as name.     

Licensees are also barred from misrepresenting their retail dispensary as a medical cannabis dispensary, and as such are unable to use the terms “drug,” “drug store,” “medicine,” “apothecary,” “doctor,” or “pharmacy”; including similar terms like “pharma-” or “medi-” along terms not included on the list that have the same meaning as the terms on the list. 

Adult-use cannabis businesses will only be allowed to operate from 8:00am until midnight unless municipalities approve a local ordinance allowing operation beyond those hours. 

Licensed businesses will be allowed cannabis products only obtain from licensed distributors, hemp products, cannabis paraphernalia, stationary, gifts, and “other minor incidentals,” and branded merchandise for the licensee’s brand (in adult sizes only). Businesses will not be allowed to sell branded merchandise for other brands and cannabis giveaway promotions are also banned.  

Dispensaries cannot be on the same street or within 500 feet of school grounds, nor on the same street or within 200 feet of a building exclusively used as a house of worship, the guidance states. 

State officials have not yet provided a firm date for adult-use cannabis sales to commence; however, earlier this month New York Office of Cannabis Management Director Chris Alexander indicated they could begin before the year’s end. 

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Missouri Law Enforcement Group Calls for Voters to Pass Cannabis Legalization

10/31/2022

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A Missouri law enforcement group is urging voters to back the adult-use cannabis legalization question on the upcoming midterm ballot, KMOV reports. The Law Enforcement Action Partnership (LEAP) LEAP is a non-profit group of criminal justice professionals, including police, prosecutors, and judges that aims to mobilize law enforcement in criminal justice reforms that promote public safety. 

Retired Lt. Diane Goldstein, executive director of LEAP, said the organization has “watched as marijuana arrests and convictions taxed the resources of our local police departments and caused real harm to neighborhoods.” 

“What people don’t see behind the scenes is that law enforcement has a duty to respond any time dispatch receives a call about these low-level marijuana offenses. They divert our attention from responding to and solving more serious crimes. These calls are a distraction and don’t serve the public interest.” — Goldstein via KMOV 

John Payne, Campaign Manager for Legal Missouri 2022, the campaign behind the initiative, said passing the legalization law “will return critical resources to local police, but it will also bring new revenue streams to Missouri’s veterans.”  

“The tax revenues will be used equally to support veterans’ services, pay for drug treatment and counseling, as well as fund public defenders,” he told KMOV. 

Earlier this month, the Missouri State Highway Patrol filed a copyright claim against one of Legal Missouri 2022’s ads which featured an individual wearing the agency’s uniform. The claim led to the ads being pulled from YouTube.    

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New California Cannabis Enforcement Taskforce Eradicates 7,500+ Plants

10/28/2022

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California officials are continuing their aggressive crackdown on unregulated cannabis operators, announcing on Wednesday the eradication of 7,503 plants and more than 936 pounds of cannabis flower in enforcement actions between October 18 and 19. The Unified Cannabis Enforcement Taskforce (UCETF) said the plants and processed flower had an estimated value of nearly $8 million. 

State officials announced the creation of the UCETF earlier this month which is co-chaired by the Department of Cannabis Control (DCC) and the California Department of Fish and Wildlife (CDFW) and is coordinated by the Governor’s Office of Emergency Services (Cal OES) through its Homeland Security Division.    

The operation included 13 search warrants on unlicensed indoor cultivation operations in the Sun Valley suburb. 

In a statement, DCC Director Nicole Elliott said the agency “works hard to support the transition of legacy operators into the legal market” but “have zero tolerance for this behavior.” She added the DCC will work with its “partners across the state, local, and the federal government to shut it down.” 

“Criminal cannabis operators, like those we enforced against in this operation, jeopardize the health of their workers by using toxic chemicals to help fertilize indoor cultivations that undercut the legal market and present safety risks to consumers.” — Elliot in a press release 

Charlton H. Bonham, director of CDFW, described the cultivation operation as “a perfect example of the disregard for health and safety and the lengths people will go to grow illegal cannabis.”  

“This type of activity is a huge threat,” he said, “and detrimental to the burgeoning legal market we are working to support.” 

Criminal investigations are ongoing, and the cases will be submitted to the Los Angeles County District Attorney’s Office. Cases for civil penalties may be submitted to the California Attorney General’s Office and the Los Angeles City Attorney’s Office.  

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Supermajority of Alabamans Back Medical Cannabis Reforms

10/28/2022

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A strong supermajority of Alabama voters favor medical cannabis as a recent Mowery Consulting Group poll conducted in partnership with the Alabama Medical Cannabis Association found 79% back the reforms with just 9% opposed, according to Alabama Political Reporter. The state’s medical cannabis law was signed by Republican Gov. Kay Ivey in May, just days after lawmakers approved the legislation.

In a statement, Alabama Medical Cannabis Association Executive Director Patrick Lindsey described the poll results as “a little better” than the organization expected.

“It shows both the need for the product, and that this process is establishing an industry that is here to stay.”— Lindsey, in a statement, via the Political Reporter 

Medical cannabis is not yet available in Alabama as the state Medical Cannabis Commission is just starting to accept industry applications. The state is accepting licenses until December 30 but sales are not expected to commence until 2023.

David Mowery, Chairman of Mowery Consulting Group, said in a statement that the firm “rarely” sees the level of support “for a product or service that is not currently allowed in the state.”

“These are the types of numbers any politician would be happy to use as a vehicle for signature legislation,” he said in the statement. “Anyone wishing to revert the laws on this issue is going to have a tough row to hoe when it comes to the next election.”

During the last legislative session, state lawmakers on the Judiciary Committee approved a bill to decriminalize cannabis possession in the state, but that measure didn’t make it to the full chamber for a vote.

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Mississippi Officials Expect Patients to Have Medical Cannabis Access by Early 2023

10/28/2022

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Mississippi regulators have issued medical cannabis licenses to medical practitioners, patients, dispensaries, cultivators, processors, laboratories, disposal companies, and workers in the two years since voters approved the reforms; but patients still don’t have access to products, the Clarion Ledger reports. Kris Jones Adcock, director of the Medical Cannabis Program, though, said patients should have access to products by the beginning of 2023. 

As of Thursday, officials have permitted 406 patients, 117 practitioners, 138 dispensaries, 47 cultivators, eight processors, three disposal companies, two testing labs, and issued 491 work permits to businesses. The provisional licenses are valid for 120 days and allow the Mississippi State Department of Health to monitor the companies before issuing a long-term license. 

State Health Officer Daniel Edney told the Ledger that he believes the state has “enough practitioners now to take care of the patients that are currently certified” but that officials “will be recruiting more.” 

“We’re seeing increases every day in the number of practitioners that are interested in the program,” Edney told the Ledger, “and we’re seeing increases every day in the number of patients interested in the program.” 

Edney added that officials are doing everything allowable under the state medical cannabis law “to keep diversion as low as possible” but that they “will not get that to zero.”    

Mississippi’s medical cannabis law officially took effect on July 1. Under the program, patients will be allowed to purchase up to 3.5 grams of cannabis per day, or about three ounces per month. The law covers individuals with cancer, HIV/AIDS, sickle cell disease, terminal illness, and debilitating medical conditions that cause cachexia, chronic pain, seizures, severe or intractable nausea, or severe and persistent muscle spasms.   

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Nevada Judge Rules Pharmacy Board Not Allowed to Regulate Cannabis

10/28/2022

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A district judge in Clarke County, Nevada has ruled that the Nevada Board of Pharmacy is not allowed to regulate cannabis and must remove the plant and its derivatives from the state’s controlled substances list, the Nevada Independent reports. 

“If the [pharmacy] board designates a substance as a ‘controlled substance’ but the designation falls outside the authority delegated by the ​​Legislature, the designation is invalid,” District Court Judge Joe Hardy Jr. ruled.

This ruling comes on the heels of a September decision by the same judge that ordered the board to remove cannabis from the state’s drug schedule and focused on the board’s authority to regulate cannabis. The judge said he was waiting on the two sides to submit draft orders on October 5 to rule on the regulatory question, according to the report. 

Attorneys for the plaintiff, the Cannabis, Equity and Inclusion Community (CEIC), on behalf of Antoine Poole, who was convicted of felony cannabis possession in 2017, argued that although Nevadans could purchase cannabis in dispensaries since 2000, the state continued to list the substance in the same categories as illicit drugs like heroin and methamphetamine, the Independent says.

After the first hearing in July, Athar Haseebullah, the executive director of the American Civil Liberties Union of Nevada (ACLU), which represented CEIC, said,  “The notion that a state agency is able to engage in unlawful actions because it’s happening at the federal government – it’s just not the way it works.”

“They don’t work for the feds. We didn’t sue the DEA here. We sued the State Board of Pharmacy because this is a state action.” — Haseebullah, via the Independent

Judge Hardy said in his ruling, “the board exceeded its authority when it placed, or failed to remove marijuana, cannabis, and cannabis derivatives on its list as Schedule I substances.” He said medical cannabis is “enshrined” in Nevada law and that under a 2019 law, the regulation of cannabis falls to the state Cannabis Compliance Board.

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Ganjapreneur Partners with Outlaw Report for Cross-Platform Promotions

10/27/2022

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Cannabis business journal Ganjapreneur has partnered with Outlaw Report, a platform focused on Eastern US and Washington D.C. cannabis policy and business developments, enabling advertisers and brands to leverage both audiences simultaneously. Cross-platform advertising campaigns will be coordinated through Ganjapreneur’s in-house creative agency, Blue Dream, which also offers branding, website development, packaging design, and lead generation for plant-touching and ancillary organizations.

Ganjapreneur CEO Noel Abbott described the partnership as “a great opportunity for any cannabis-focused or cannabis-adjacent advertiser to reach professional audiences in emerging markets. At Ganjapreneur we have national reach, but with Outlaw Report’s following in Maryland, Virginia, D.C., and surrounding states, we can now help brands be laser-focused about building awareness in these regions.”

Outlaw Report was founded in 2019 by John McGowan and Meredith Kinner of Kinner & McGowan PLLC, a Washington D.C. law firm primarily focused on providing counsel to cannabis businesses and startups. The Outlaw Report’s co-founders “are excited about this affiliation with Ganjapreneur and the opportunity it presents to expand the footprint of The Outlaw Report’s cannabis news coverage. This coverage will be even more important as the East Coast cannabis market continues to grow.”

In addition to a weekly newsletter providing informed context for regional news in the world of regulated (and unregulated) cannabis business, Outlaw Report also works with a network of freelance journalists to cover new policy developments and conducts occasional interviews with regulators, experts, and business owners.

To learn more about the advertising offerings available through Ganjapreneur’s partnership with Outlaw Report, cannabis industry marketers can request an advertising media kit through Ganjapreneur’s website.

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Germany Unveils Cannabis Legalization Plans

10/27/2022

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Germany this week officially unveiled its cannabis legalization plans, allowing the possession of up to 30 grams of cannabis and regulated sales to adults, the Associated Press reports. There are still questions about whether the plan will be approved by the Cabinet as officials want to first be sure the legislation is compatible with European Union law.   

Health Minister Karl Lauterbach said the legalization plan aims to combat illegal cannabis sales in the nation and that the government would tightly regulate the market. Under the plan, the “social effects” of the reforms would be examined after four years.

According to a draft plan outlined last week, THC in cannabis products would be limited to 15% and adults would be allowed to cultivate up to two plants for personal use. Individuals under 18 caught with cannabis would be exempt from criminal punishment but youth welfare officers could advise that young people participate in prevention courses and the cannabis would be confiscated, according to the draft document.

Following the release of the draft document, Niklas Kouparanis, CEO of Bloomwell Group, Germany’s largest cannabis company, warned that the THC limits “may play into the hands of the illegal market.”

Lauterbach has estimated that about 4 million adults in Germany consume cannabis.

Last month, German officials visited cannabis businesses in California. In a tweet, the German consulate in San Francisco said officials “examined products of dispensaries with equity licenses” to better understand “cannabis legalization opportunities and risks.”

In July, officials from Germany, Luxemburg, Malta, and The Netherlands discussed how Europe could move forward in legalizing adult-use cannabis.

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Six Oregon Towns Voting on Psychedelic Mushroom Bans During Midterms

10/27/2022

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Six Oregon communities are voting during the midterm elections to ban the sale and production of psychedelic mushrooms, the Mail Tribune reports. City and county councils in unincorporated Jackson County, Central Point, Phoenix, Eagle Point, Shady Cove, Jacksonville, and Rogue River all referred the question to voters.  

The ballot questions come two years after Oregon passed Measure 109, which legalized the use of psilocybin mushroom therapy for mental health treatment in “service centers.”

Other communities like Medford, Ashland, and Talent refrained from putting the ban to voters, which will allow Measure 109 to move forward in 2023 in those localities, the report says.  

The Oregon Health Authority is currently developing regulations to license the production and use of psychedelic mushrooms in municipalities that allow the practice and will have the option to add more rules to the system. 

Will Lucas, who is opposing the bans and is the venue supervisor for Buckhorn Springs Retreat Center, which was bought by the international Synthesis Institute to be used as a treatment center, said, “Psilocybin therapy is a really promising therapy for veterans with PTSD and people with end-of-life anxiety. Studies show reductions in anxiety, depression, and end-of-life distress.” 

Medical experts say psilocybin mushrooms can induce hallucinations, sensory distortions, euphoria, spiritual feelings, a sense of oneness with the universe, peacefulness, fear, paranoia, or confusion. Hallucinations can be positive or frightening, and some users experience psychosis-like symptoms or flashbacks.   

Jackson County Sheriff Nathan Sickler said he thinks there won’t be problems if growers and therapists follow the law, but expects some Oregonians may provide mushrooms to the unregulated market.  

“Every time you open the door, there are individuals who will take advantage of that,” Sickler said. “It’s one more thing law enforcement will have to do when we have to do criminal investigations. We don’t have the staffing for that.”

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Two Ohio Men Charged with Fraud Over Fake Medical Cannabis Business Scheme

10/27/2022

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Two Ohio men have been indicted by a Warren County grand jury for theft, fraud, corrupt activity, and unlawful securities practices related to a fake medical cannabis and CBD oil manufacturing business. 

Warren County Prosecutor David P. Fornshell announced the charges against Aaron Pitman, 34, of Morrow, and Ryan R. Goldschmidt, 39, of Cincinnati on Tuesday, alleging the pair defrauded investors through multiple business entities including Oak Street Group, GGB Assets, and Excelsior Leasing. The men are accused of making misrepresentations to multiple victims to persuade them to invest in a medical cannabis grow operation that they claimed to be operating in California, as well as a CBD oil cartridge manufacturing business, according to a press release from the Warren County prosecutor’s office.

Approximately $796,714 in investor funds were deposited into bank accounts controlled by Pitman and Goldschmidt. The money was used for personal expenses and other purposes unrelated to medical cannabis or a CBD oil cartridge manufacturing business. In some cases, the pair diverted funds to pay off prior lawsuits or make payments to their friends, according to a press release. 

Neither Pitman nor Goldschmidt is licensed to sell securities to investors in the state of Ohio, or in any other state, and despite their representations to investors, neither has prior experience in the business of licensing, cultivating, or selling medical cannabis or CBD. They are alleged to have misrepresented to investors that Goldschmidt was an attorney and that they would get 100% of their money back, plus additional profits.  

The victims were left with no returns on their investments. 

The indictments are the result of an investigation by the Ohio Department of Commerce, Division of Securities, and the Ohio Bureau of Criminal Investigation, Forensic Accounting Division. 

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New Hampshire Cannabis Party Endorsing Candidates in Midterm Elections

10/27/2022

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The New Hampshire Cannabis Party is endorsing candidates for state office who they believe will support cannabis legalization, the Conway Daily Sun reports. In a statement, the party announced its “full-scale campaign for common-sense cannabis legalization.” 

“Contrary to conventional wisdom, cannabis legalization and commerce represents much more than just a few extra jobs and tax revenue. Rather, it offers a generational opportunity for comprehensive, multi-pronged prosperity and progress for all New Hampshire citizens.” — New Hampshire Cannabis Party in a statement via the Daily Sun 

Nathanial Gurien serves as the founder and executive director of the party. According to his LinkedIn profile, he is the CEO of Orion Group NYC which is described as “Consultants to High-Risk & Cash-Intensive Industries Investment, Financing and Strategic Planning, Turnkey Administrative and Operations Services.” 

Gurien attempted to get on the ballot in Sandwich to run as an independent but didn’t get enough signatures to qualify. The party’s Vice Chair Kaitlyn McCarthy also attempted to get on the ballot as a candidate for Senate District 6.

Gurien told the Daily Sun that the party has endorsed “close to 50 bipartisan candidates across many state offices from governor down to state rep.” 

“It’s running somewhere in the neighborhood of, oh, I don’t know, 40% Republican, a few Libertarians, and the rest Democrats,” he said. “But it’s pretty bipartisan.” 

For governor, the party endorsed Democrat Tom Sherman, who is challenging incumbent Republican Gov. Chris Sununu. It also endorsed several House and Senate candidates including Democrat Bill Marsh who is challenging incumbent Republican Jeb Bradley. 

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The Federal Government’s Responsibility to Subsidize the Cannabis Industry

10/27/2022

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Editor’s note: This editorial was contributed by Christine De La Rosa, co-founder and CEO of The People’s Ecosystem, a California-based and equity-focused multistate cannabis operator.

Pharmaceutical, agriculture, wind power, solar power, electric cars, steel, banks, airlines, and railroads — what do all of these industries have in common? They have all been subsidized by the federal government at the onset, during the growth phase, or during downturns in their industry. Trillions of dollars have been poured into these industries to stand them up or to save them from failing. Yet the U.S. government has done very little to assist in standing up one of this century’s largest and most lucrative industries we will see in our lifetime or the 21st century: the cannabis industry.

What are federal subsidies?

So what is a subsidy? Subsidies are direct contributions, tax breaks, and other special assistance that governments provide businesses to offset operating costs over time. If ever there was an industry that needed help to offset operating costs, it would be the cannabis industry. This is not an industry that will be able to sustain, grow or thrive unless funding is available from both the public and private sectors. Our legislators must be disabused of the notion that cannabis is a cash cow for their empty coffers. Governments, municipal, state, and federal, run the cannabis industry as if it doesn’t need any help when it absolutely does and now, right now.

Did you know that the three largest subsidized industries are energy, agriculture, and transportation? Cannabis sits squarely in the agriculture category, and literally, no other part of the supply chain is more important than cannabis cultivators. Manufacturing, distribution, and retail do not exist unless we have a robust cultivation community of all sizes, from large-scale to craft growers. Cannabis cultivators, our cultivators, should receive some portion of the subsidies offered to their counterparts in other agricultural categories. At the same time, some subsidies are available for hemp growers but very few growers know how to access them — but at least they have them. Back to cannabis cultivators, the backbone of the cannabis industry, the fact that they don’t have access to agricultural subsidies from their federal government is a crime and makes no sense.

Reached the tipping point

Right now, there is a cacophony for SAFE Banking, as there should be, but we can’t forget what is owed to us as an industry. It feels like all of our resources go to supporting SAFE Banking, and then what? We must be aggressively working on parallel tracks for what we expect from our governments to help us stand up for this industry, as it has for almost every other industry of this magnitude. We need to ensure that our governments, at every level, are ready to engage with the cannabis industry in helpful and not harmful ways. My biggest takeaway when speaking to legislators is how little they understand about what it takes to run businesses in this industry. It is clear to me that they don’t understand the depth and breadth of what is possible if they are good stewards of this industry, and it goes way beyond SAFE Banking.

We are at a tipping point in the industry where there are so many small and midsize businesses failing because they don’t have access to institutional capital or regular banking. Still, more importantly, the whole industry doesn’t have access to federal funding, which we should have. Cannabis is a life-changing medicine, and I know that firsthand. It is also an industry with the ability and the mandate to increase the income of an entire generation. The federal government spent trillions of dollars to fight the War on Drugs. Where did that money go now that the cannabis industry is being regulated? Why was it so easy to find money to throw our people in jail, but now that money is nowhere to be found to guarantee a thriving, robust, and just industry?

If you read my article “Social Equity is ‘The Hunger Games’ for BIPOC & Formerly Incarcerated Cannabis Founders” earlier this year, you know I am not a fan of social equity. I find it abhorrent that we are expected to pay to repair our own harm. As a disabled person, I am angrier that my medicine, our ancestral medicine, is being used as a tax windfall for governments. They need to find all that money they had before to incarcerate our people and all the new money coming in from the regulated market and use it to subsidize the industry that will change the world. There are many ways to do this by looking at the agriculture subsidies as a guidepost, but let’s get creative; let’s help our governments get more creative.

  • Let’s make sure our Small Business Administration understands the needs of the cannabis industry, especially our small businesses because those needs are sometimes unique.
  • Let’s get them ready now to work with our industry at the moment of federal legalization because that will be an extinction event for small to midsize businesses if we cannot access capital.
  • Let’s create tax incentives for companies committed to DEI and ESG initiatives now, not later.
  • Let’s build the workforce development needed for our essential workers and our new founders. And let’s make sure it is what we need.
  • Let’s get the grants ready for companies working hard to limit their carbon footprint and build green.
  • Let’s set up direct cash payments to cultivators when market compression hits or there is a natural disaster.
  • Let’s provide loans, with no penalty for default, to the backbone of our industry, the cultivators.
  • Let’s ensure we have affordable insurance subsidized by our government at all levels of the supply chain.

The list can go on and on. These are just a few ideas but I am sure collectively, we can add to the list. I challenge us as an industry to start thinking about federal subsidies with the same fervor that we champion SAFE Banking.

No other industry, at this scale and in recent history, has had to stand itself up with such little help from the government. In recent years, many people have proposed massive cuts in subsidies because of expanding government debt and declining tax revenues. Except we are the tax revenue, and we must demand that we are afforded the help we need to create the industry we deserve.

Update:

I had written this piece and submitted it a few days before the announcement of President Biden’s recent cannabis orders — this topic is now more relevant than ever. It is possible that cannabis could be rescheduled within 12-18 months or sooner. How will we as an industry prepare our government to assist us in standing up a federally legal industry? The time to talk about it is now because it is more imminent than ever.

I was in the middle of a large exhibition hall promoting our line of products with hundreds of other cannabis brands in Santa Rosa, California when I read the news via an email. I immediately started running to all the different booths around us to share the news. About 20 minutes later, it was announced over the loudspeaker, and the entire exhibit hall erupted in cheers. I ran back to our booth where a group of my OG colleagues had gathered. We hugged and cried together at this momentous event that we were lucky enough to share as a community. Everyone was so joyous and optimistic about our future. After about 10 minutes, we all got back to work. That’s what we do as an industry — we work hard to get our medicine to the people.

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Russian Court Denies Brittney Griner’s Appeal

10/26/2022

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A Russian court on Tuesday upheld the nine-year sentence for WNBA star Brittney Griner, Reuters reports. Griner was sentenced in August for possession of two cannabis vape cartridges that were allegedly discovered in her luggage by Russian customs officials in February as she was traveling to the country to play for Russia during the WNBA winter offseason.    

Griner will be sent to a penal colony, but her lawyers indicated it would be some time before that move would be completed. They indicated they had not yet decided whether they would launch another appeal.  

In a statement prior to the decision of the appeals court, U.S. National Security Advisor Jake Sullivan described the judicial proceeding as a “sham.”  

“President [Joe] Biden has been very clear that Brittney should be released immediately. In recent weeks, the Biden-Harris Administration has continued to engage with Russia through every available channel and make every effort to bring home Brittney as well as to support and advocate for other Americans detained in Russia, including fellow wrongful detainee Paul Whelan.” — Sullivan in a statement 

Sullivan added that the administration “remains in regular touch with representatives of the families” and “continues to admire their courage in the face of these unimaginable circumstances.” 

Griner and her lawyers had asked the appeals court for acquittal or at least a reduction in her sentence, which they called disproportionate to the offense and at odds with Russian judicial practice. 

The presiding judge took no more than 30 minutes to return with the decision to uphold the original verdict with “no changes,” the report says. 

Alexander Boykov, one of her lawyers, said “The severity and cruelty of the sentence applied to Griner shocks people around the world.” 

“I was barely over the significant amount [of cannabis oil],” Griner said while appearing in court via video. “People with more severe crimes have gotten less than what I was given.” 

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SEC Charges Cronos and Former COO with Fraud

10/26/2022

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The U.S. Securities and Exchange Commission (SEC) on Monday charged NASDAQ-listed cannabis producer Cronos and the company’s former chief commercial officer with fraud related to falsely accounting for millions of dollars in revenue and other accounting misconduct. The SEC said former Chief Commercial Officer William Hilson aided the company in the violations.

Neither Cronos nor Hilton admitted or denied the allegations, the SEC said.

According to the SEC, from 2019 to 2021 Cronos filed financial statements in three separate quarters with the commission that contained material accounting errors.

In two of the three quarters – the first quarter of 2019 and the third quarter of 2019 – the SEC alleges that Cronos “improperly recognized revenue in connection with certain transactions with the same counter-party where the sale of cannabis raw materials (or cannabis flower) by Cronos occurred simultaneously with the purchase by Cronos of processed cannabis product.”

Separately, in the third quarter of 2019, the SEC says, “a since terminated senior executive of Cronos entered into an undisclosed oral agreement with a different counter-party to sell cannabis raw material to the counter-party but then repurchase the cannabis product, either as a derivative product or in some other form, in the following quarter.”

“This oral repurchase agreement made it inappropriate for Cronos to recognize revenue in connection with the sale transaction. Finally, in the second quarter of 2021, Cronos failed to timely record impairment charges in connection with goodwill and intangible assets associated with its U.S. reporting unit. As a result of the foregoing accounting errors, Cronos furnished to and/or filed with the commission, periodic reports that contained materially inaccurate financial statements.” — SEC, in the Matter of Cronos Group Inc, Oct. 24, 2022 

According to the SEC, after discovering the accounting errors, Cronos filed restated financial statements for the relevant quarters.  

“In connection with the first and third quarters of 2019, Cronos disclosed that it had materially overstated its revenue by $5.8 million,” the SEC alleges. “In connection with the second quarter of 2021, Cronos disclosed that it should have recorded approximately $234.9 million in impairment charges in relation to its U.S. reporting unit. Concerning all three quarters, Cronos disclosed that it had identified material weaknesses in its internal control over financial reporting.” 

In a statement to CFO Dive, Mark Cave, associate director of the SEC’s Enforcement Division, said “Cronos avoided penalties by promptly self-reporting its accounting misconduct as it came to light within the company, cooperating with our investigation and promptly taking effective remedial steps.” 

“It is critically important for issuers to have adequate controls in place before they take on the reporting obligations required of public companies,” he said. 

In a statement, Cronos President and CEO Mike Gorenstein said that the company has “resolved these matters” by agreeing to pay C$1.34 million. 

Hilson agreed to a three-year officer and director ban and to a suspension from practicing before the SEC as an accountant for the same period, the SEC said. It did not fine Hilson after he agreed to pay the Ontario Securities Commission a C$54,000 penalty.

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Poll: South Dakota Voters Poised to Reject Adult Cannabis Use Measure

10/26/2022

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South Dakota voters seem poised to reject the state’s upcoming adult cannabis use initiative, according to a poll from KELOLAND News, Emerson College, and The Hill released on Tuesday. The survey found that 50.5% of respondents plan to vote against the measure, with 39.7% in favor, and 9.8% undecided. 

The poll found that 44.1% of female respondents planned to back the reforms, with 54% opposed. About 36% of men polled said they planned to vote yes, with 46.7% opposed. Adult cannabis use was backed by 59% of voters aged 18 to 49 but support falls among those aged 50-64 with 56.7% saying they plan to vote no on the measure along with 63.8% of respondents 65 and older.  

Jim Kinyon, committee chair for Protecting South Dakota Kids, which opposes the reforms, told KELOLAND that he is “Very, very hopeful, that as more messages get out and more people find out about what marijuana will do, the dangerous drug that it is, that more folks will turn out because that is way too narrow of a margin.” 

Matthew Schweich, campaign manager for Yes on 27, which backs the measure, said despite the polling with less than two weeks prior to the midterm election, he believes the campaign is “still in a position to win.” 

“I believe that there’s a large number of voters who don’t typically vote in midterm elections, who are going to be motivated to show up and vote in favor of Measure 27,” he told KELOLAND. 

South Dakota voters had passed adult cannabis use reforms in 2020 but they were ultimately struck down by the state Supreme Court which ruled that the measure violated the state’s one-issue rule for initiatives.

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