Cannabis From New York’s Unlicensed Shops Tests Positive for E. Coli, Salmonella

According to a recent investigation, about 40% of cannabis products bought from unlicensed cannabis shops in New York City tested positive for harmful contaminants including E. coli, lead, and salmonella, Bloomberg reports. The report, commissioned by the New York Medical Cannabis Industry Association (NYMCIA), investigated cannabis products purchased from 20 illicit New York City cannabis shops.

In addition to the contaminants demonstrated through lab testing, every product was found to be noncompliant with the state’s proposed branding regulations, which outlaw packaging and product designs that could be considered attractive to children. Some of the tested products even featured images of copyrighted food brands like Rice Krispies, Bloomberg said.

“The report’s findings are deeply troubling and highlight the tremendous risks posed by unscrupulous firms operating above the law. New York has a responsibility to not only protect the health and safety of its residents but also to fulfill the promise of a socially equitable adult-use market. Neither goal can be realized without stricter enforcement against bad actors.” — NYMCIA President Ngiste Abebe, in a statement

New York regulators scrapped the state’s adult-use cannabis testing limits last month for yeast, bacteria, and mold after cultivators expressed concern that the majority of their products wouldn’t pass the strict rules. Meanwhile, officials approved New York‘s first cannabis retail licenses on November 21, prioritizing individuals who were disproportionately affected by prohibition, and regulators have said they intend for legal adult-use sales to launch by 2023.

In September, a group of New York state lawmakers wrote to New York City Mayor Eric Adams asking him to “move swiftly” in clamping down on illegal cannabis sales in the city. The mayor, who is a former New York City Police Department officer, had said in June that he didn’t want to see heavy enforcement against businesses found to be illegally gifting cannabis.

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Minnesota to Expand Its Medical Cannabis Program

The Minnesota Department of Health has expanded medical cannabis access in the state by adding obsessive-compulsive disorder (OCD) and irritable bowel syndrome (IBS) to the program’s list of qualifying conditions, the Star Tribune reports.

“Research has shown that people who suffer from these conditions can see benefits from using medical cannabis to treat their symptoms.” — Minnesota Department of Health, in a statement

Minnesota‘s medical cannabis program was launched with just nine qualifying conditions but today, there are 19 conditions that qualify patients for access to the program; the additions of OCD and IBS next August will raise that total to 21. Regulators opted against adding opioid use disorder and gastroparesis, a stomach- and digestion-related condition, to the list of qualifying conditions.

Most Minnesotans have had the ability to self-medicate with cannabis since July 1, when the state legalized THC-infused gummies and similar products for adults aged 21 and older. But that hasn’t slowed participation in the state medical cannabis program: more than 39,000 patients are actively enrolled in the program, the report said, up from 29,000 in 2021.

Minnesota Gov. Tim Walz (D) said earlier this month he believes the state was poised to pass full legalization reforms as soon as the next session after Democrats took control of the state Legislature.

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Young Americans Far More Likely to Smoke Weed Than Cigarettes

A new survey analysis of Gallup’s latest poll data found that young Americans aged 18-29 are more than twice as likely to smoke cannabis than cigarettes, Marijuana Moment reports.

According to the analysis, the past-week smoking rate for cigarettes of Americans aged 18-29 dropped from 15% in 2016-2018 to just 12% in 2019-2022, a new low record, while cannabis consumption rates increased from 21% to 26% — also a new record — for the same group over the same timeframe.

On average, Gallup found that 27% of Americans either smoked cigarettes, used tobacco vapes/e-cigarettes, or smoked cannabis from 2019-2022. And of that segment, 7% of respondents smoked cannabis alone, 9% smoked just cigarettes, and 3% smoked only e-cigarettes.

But while young Americans were the most likely to be using smoking or vaping products of any variety, they were also the most likely to have opted for just using cannabis over tobacco-based products.

Tobacco use rates have consistently dropped for two decades but Americans aged 30-49 are still more likely to consumer cigarettes exclusively (11%) than just cannabis (8%).

The latest Gallup poll found that support for cannabis legalization in the U.S. has maintained a record high of 68%, which the pollster first recorded last year. Another Gallup poll from August, meanwhile, found that nearly half of U.S. adults (49%) had tried cannabis at least once, with 12% identifying as regular consumers.

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Louisiana First Responders Renew Call for Medical Cannabis Access

First responders in Louisiana are speaking out ahead of a legislative push for cementing their right to access the state’s medical cannabis program, WAFB reports. It is the second attempt in as many years by state Rep. Mandie Landry, a Democrat from New Orleans, to codify the rights of first responders to access the program.

Alex Tony, a former Army medic and current firefighter, called on officials in Louisiana’s Medical Marijuana Task Force to expand medical freedoms for first responders:

“I think that we should be able to make that choice without repercussions. Because I work in a field where psychological issues such as PTSD are not only commonplace but they’re actually presumptive. Meaning at some point in my career I will see something, be involved with something, do something that I will be mentally and emotionally accountable for…for the rest of my life.” — Tony, in a statement

While last year’s bill failed, Rep. Landry said she is willing to renew efforts this year despite each lawmaker being limited to just five legislative proposals this year on account of it being a fiscal year in Louisiana, according to the report.

“I mean we’re always going to try to expand it and clarify issues in the next session,” Landry said. “And I think this group, it’s such a diverse group, they’ve been working really hard. I think they’re going to come up with some good practical suggestions.”

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Canada Appoints Experts for Cannabis Legalization Law Review

Canada’s government has formally appointed a panel of doctors, academics, and lawyers to conduct its first-ever statutory review of the country’s 2018 Cannabis Act, which federally legalized cannabis for adults, The Canadian Press reports.

The legislative review is coming more than a year later than expected and aims to investigate the health effects of legal cannabis on Canadian citizens and analyze the effects of legalization on Canada’s economy and unregulated cannabis market, which has thrived despite the reforms.

The panel, headed by former foreign deputy minister of justice and deputy attorney general of Canada Morris Rosenberg, now includes four additional experts:

  • Dr. Oyedeji Ayonrinde, an associate professor of psychiatry and psychology at Queen’s University
  • Dr. Patricia Conrod, a clinical psychologist and professor at University of Montreal’s Department of Psychiatry and Addiction
  • Lynda Levesque, a criminal lawyer and member of the Fisher River Cree Nation in Manitoba, Treaty Five territory
  • Dr. Peter Selby, Vice-Chair of Research and Head of the Department of Family and Community’s Division of Mental Health and Addiction

The statutory review in question was mandated by the original legalization bill but, despite consistent outcry from legal cannabis operators about steep taxes and competition with the unregulated marketplace, federal officials were slow to take action.

The Cannabis Act took effect in October 2018; Canada was only the second nation in the world to pass federal adult-use cannabis reforms, after Uruguay.

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Unlokt Tech: Revolutionizing Cannabis Infusions

The experience of eating edibles has never matched that of smoking a joint or hitting a pipe, largely due to how the body digests cannabinoids, terpenes, and other flavonoids. When edibles are digested, the terpenes are burnt off by acids in the digestive tract and THC is filtered through the liver to create 11-Hydroxy-THC, a byproduct of the metabolic process. This is why the effects when we metabolize THC feel so different from when we inhale it. Unlokt™ is a groundbreaking technology from Day Three Labs that utilizes the concept of first pass metabolism (also known as first pass effect, presystemic metabolism, or elimination). Unlokt packs the cannabinoids and terpenes onto a protein complex that is absorbed directly into the bloodstream, allowing the valuable compounds to bypass the liver. The technology not only has reliable onset time: it is consistent, guaranteeing the same effect for every batch and, most importantly, creates an effect or outcome to match that of inhaling the extract from which it was made. Ganjapreneur connected with Day Three Labs’ CEO Josh Rubin to learn more about what the technology means for the cannabis industry.

“The novel consumer in cannabis is looking for a specific experience or to enhance some part of their life or relieve something. To date, we haven’t been able to consume edibles that achieve those experiences. But now with Unlokt™, we finally have a way of ingesting cannabis and having the desired outcome,” said Day Three Labs CEO Josh Rubin. “We’re providing that precision, we’re providing that predictability, but the most important thing here is we’re actually providing an avenue for all consumers to benefit from cannabis.”

Unlokt™ was developed in an Israeli pharmaceutical research lab before it was introduced to the United States cannabis market. The product is not a nanoemulsion, which can contain harmful ingredients, and it doesn’t work by tricking the body into absorbing cannabinoids – it is a protein complex that takes advantage of a naturally occurring process in the human body. Rather than focus on particle size and emulsion, Day Three Labs packs cannabinoids and terpenes onto the protein complex much like sugar sticks to a raisin in Raisin Bran cereal with only 2 ingredients– cannabis and protein. Before it was implemented, the tech was tested in a tissue culture lab and underwent several animal PK studies. As products made with Unlokt™ debut across the US, the lab and the brands are collecting surveys and anecdotal data, as well.

Denver, Colorado-based Olio was the first brand to release a product formulated with Unlokt™. Their mission is to create products that reflect the garden and as such, prefer to use live rosin. As they shopped for inputs for their live edibles line, many other brands attempted to direct them toward high THC extracts rather than the full spectrum products they desired. Their search eventually led to the partnership with Day Three Labs. The input agnostic technology can be applied to any type of ingestible cannabis products made using rosin, distillate, live resin, and even high-potency tincture. Olio opted to produce a chef-developed live resin gummy including only the finest ingredients, from the live resin input to the fruit de pate. The brand desired an edible that closely matched the effects of inhaling the live resin it was made with, and that is what drew them to Unlokt™.

Steve Morigi, Brand Product and Process Manager at Olio, told Ganjapreneur: “They are, to our knowledge, the only company that can actually do this. They have the studies, they have the labs in Israel, they have the blood tests to show the cannabinoids coming through. We’ve personally just done potency testing and cannabinoid testing, terpene testing on the process pre and post their technology, and we see terpenes being transferred over. We see minor cannabinoids being transferred over and we see strain-specific unique profiles being transferred over.

“It’s just protein and cannabinoids, it’s all-natural and clean,” Morigi said. “But really it’s the experience itself, and that’s why this technology was designed. It was designed to create a far more efficient methodology of delivering cannabinoids directly into circulation. This technology protects the profile of the cannabis entirely and then shuttles that profile directly into circulation. So when we talk about strain specificity that’s what we’re referring to. It’s an entirely different experience than anything out there in the market, and anything to date.”

Day Three Labs has manufacturing labs in Colorado at Olio and their most recently opened site in Costa Mesa, California. They are also scaling an operation in New Mexico. To get started working with Day Three Labs, a brand sends their preferred input to the lab where they take the cannabinoids, terpenes, and desired compounds out and pack them onto protein particles. The exact profile is replicated into every edible. One aspect of this technology that excites Rubin is the ability to take anecdotal data of what cannabis strains can do for patients and hone in on the specific formulations that create the desired experience and effects.

“There’s a real dearth of research around this and very little in terms of precision and predictability. When you’re looking at someone who needs cannabis for a specific indication, activity, or an experience, we have yet to really get there to meet the consumer or the patient where they are. That’s what really motivates me to be pushing for more innovation and R&D for that consumer, so that they have that predictability,” Rubin said.

After the successful launch in Colorado, Unlokt™ technology is making its California debut in Toci Treats from The People’s Ecosystem. Toci Treats are designed for communities of color and will be available in standard 10 mg doses as well as microdoses. CEO Christine De La Rosa expressed gratitude and excitement in a recent interview with Ganjapreneur because people of color will be some of the first with access to this groundbreaking technology. “To create this category of medicine for my communities has always been a dream of mine. And, now that dream is a reality because another company believed in our vision. We believed in them just as much, that’s why this is such a big deal,” De La Rosa said.

Toci Treats are developed by TPE’s Chief Innovation Officer Chef Charleen Caabay in their Santa Rosa facility. After Caabay builds an SOP around a new product, it’s sent to Day Three Labs which identifies Unlokt™’s ideal form for the product and where best to insert the ingredient into the SOP. De La Rosa said, “This is literally the first time that I or anybody in the state of California – and we’re the second people in the United States – will be able to formulate very specifically.”

Being the first to use Unlokt™ in two state markets and crafting products specifically for communities who have been harmed by the war on drugs makes De La Rosa proud. First, for providing medicine for her communities, and second because, “It’s a huge signal to the industry that this is a viable, big, important market.”

And though she voices her pride at being among the first, she doesn’t want TPE to be the last to release products using the Unlokt™ technology. A few more California brands are scheduled to drop new Unlokt™ products in the coming year and it is likely that the technology will continue into new state markets soon.

Rubin is also proud: “We’re providing that precision, we’re providing that predictability, but the most important thing here is we’re actually providing an avenue for all consumers to safely benefit from cannabis as intended,” he said.

To learn more about Day Three Labs and Unlokt™ technology, visit daythreelabs.com.

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Ohio Lawmakers Consider Medical Cannabis Expansions

Ohio state lawmakers are currently considering a proposal to make medical cannabis available for patients whose conditions “may reasonably be expected to be relieved from medical marijuana,” according to a Cleveland.com report.

The state currently allows medical cannabis as a treatment for 25 conditions including AIDS, Alzheimer’s disease, cancer, Crohn’s disease, epilepsy or another seizure disorder, fibromyalgia, glaucoma, and others. But despite patient frustrations, the Ohio State Medical Board has repeatedly rejected petitions to add certain other conditions including autism spectrum disorder.

Meanwhile, advocates with the Coalition to Regulate Marijuana Like Alcohol are positioned to put an adult-use cannabis legalization proposal before Ohio voters during the November 2023 election.

Following a successful signature-gathering drive by the group, state lawmakers will be forced to consider the advocates’ legalization proposal early next year. If they fail to adopt the reforms — which is the expected outcome — advocates will get four weeks to gather additional signatures to put the issue to voters during the next November election.

Cleveland.com, citing the group’s campaign finance report filed in July, said the campaign has raised $212,500 this year with $150,000 coming from the Marijuana Policy Project cannabis advocacy organization and the remaining funds being donated by several Ohio-based medical cannabis operators. Last year, advocates fundraised $1.3 million towards the effort, according to the report.

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Connecticut Cannabis Sales Launch Expected Early Next Year

Connecticut cannabis regulators notified three medical cannabis producers last week that they have taken the necessary steps for converting their cannabis production licenses into hybrid licenses fit for serving both the medical and adult-use industries, the Connecticut Department of Consumer Protection (DCP), which regulates the industry, said in a press release.

“The Department’s priority is to have a safe, well-regulated marketplace for consumers. I am grateful to the Drug Control and Legal teams at DCP who have worked — and continue to work — tirelessly, since the passage of the law, toward a safe and successful market opening.” — Connecticut Department of Consumer Protection Commissioner Michelle H. Seagull

State law requires the licensing of at least 250,000 square feet of growing and manufacturing space before Connecticut’s adult-use sales can begin. To satisfy the threshold, regulators must either award hybrid licenses to all four of the state’s current medical cannabis producers or approve an additional cultivator. The state anticipates the launch of adult-use sales by early next year.

The following three cannabis production companies have completed the license conversion:

  • Advanced Grow Labs LLC
  • Connecticut Pharmaceutical Solutions LLC
  • Curaleaf LLC

Additionally, the following seven medical cannabis dispensaries were notified that they had completed the steps for converting to a hybrid retail license:

  • Affinity – New Haven
  • Bluepoint Wellness of Connecticut – Branford
  • C3 Torrington (Still River Wellness) – Torrington
  • FFD Newington – Newington
  • FFD Stamford – Stamford
  • FFD Willimantic – Willimantic
  • Willow Brook Wellness – Meriden

Connecticut lawmakers approved the state’s adult-use cannabis reforms in June 2021. Since then, regulators have crafted rules for the new industry, hired 38 people to help stand up the industry, and established social equity licensing opportunities for individuals who were disproportionately harmed by cannabis prohibition.

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Oklahoma Regulators Solicit Public Comment on Cannabis License Moratorium

Officials with the Oklahoma Medical Marijuana Authority (OMMA) said the agency is looking for public comment about its proposed permanent rule changes for the state’s medical cannabis program, Tulsa World reports.

Interested parties will have until December 15 to submit their feedback about proposed rule changes, which would include making permanent the state’s moratorium on new cannabis business licenses that started earlier this year.

Citizens or individuals with business interests in the industry can submit feedback via omma.ok.gov/rules or by mail to Oklahoma Medical Marijuana Authority, P.O. Box 262266, Oklahoma City, OK 73126. Feedback can also be provided in person starting at 9 a.m. on Thursday, December 15, at the Oklahoma Capitol Building.

OMMA said businesses that expect to be affected are specifically encouraged to detail the expected revenue losses or cost increases caused by achieving compliance with the new rules.

Following the public comment period, OMMA will compile a summary of any feedback or complaints it receives as well as an explanation of changes (or lack of changes) that it opts to make, the report said.

Last month, the Oklahoma Bureau of Narcotics announced it was working with law enforcement to target criminal organizations operating within the state’s medical cannabis program.

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Ireland to Consider Legalizing Cannabis

The Irish Parliament is set to consider legalizing cannabis for adult use next year under a new proposal by People Before Profit MP Gino Kenny, Forbes reports.

The proposal would modify Ireland’s 1977 Misuse of Drug Act to allow adults aged 18 and older to possess up to 7 grams of cannabis or 2.5 grams of cannabis concentrate. The bill does not contain regulated sales or even legal cultivation, commercial or home grow, so the existing black market for cannabis would remain the only option for consumers.

“The Bill is quite moderate. It amends existing legislation that dates back 42 years. Forty-two years is a very long time. I believe the existing legislation is out of date and out of time. We need a different narrative around drug reform.” — TD Gino Kenny, during a debate in Ireland’s lower parliamentary house, via Forbes

The legalization proposal needs to be approved by the Dáil Éireann, the lower house of the Irish Parliament, and debates are expected to kick off early next year.

Ireland currently allows for limited regulated access to medical cannabis. If the bill is approved, Ireland would be the latest European Union country to initiate significant cannabis law reforms but would stop short of regulating cannabis sales, unlike its fellow EU member states of Malta, Germany, and the Czech Republic.

An April poll found that 55% of adults in the European Union support the broad legalization of adult-use cannabis, with the majority of supporters also in favor of regulated retail sales and home cultivation.

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Burglars Steal Fake Gummies During Dispensary Smash-and-Grab

Would-be cannabis burglars who broke into the Sweet Dirt dispensary in Portland, Maine, last Friday morning ultimately smashed up some of the shop’s display cases and made off with boxes of fake gummies and display packaging, the Portland Press Herald reports.

Portland police said only display products were stolen during the botched burglary and that none of the stolen products contained THC or other cannabinoids. The suspects, two unidentified male individuals, have not been apprehended but the law enforcement investigation is ongoing, police said.

Sweet Dirt, located at 1297 Forest Avenue, said on Friday it was forced to close its Portland storefront due to “unforeseen circumstances,” according to the report.

The company’s Senior Vice President of Operations Amanda Abelmann told reporters the adult-use retailer’s actual cannabis products — and other valuable merchandise — had been locked in a safe at the time of the burglary.

Traditional banking services remain largely unavailable to cannabis industry operators due to the ongoing federal prohibition of the plant. This policy continues to push most dispensaries into doing business on a pure cash basis, which makes them prime targets for robbery. And while legal cannabis products would typically carry a high street value, the burglars may find that savvy consumers will have zero interest in the THC-free display products.

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Idaho Activists Aiming for 2024 Medical Cannabis Legalization Measure

Advocates with Kinda Idaho, a political action committee and 501(c)(4) nonprofit founded in 2021, have started the push to put a medical cannabis legalization initiative on the 2024 state ballot, according to a KTVB report. The petition to put the Idaho Medical Marijuana Act before voters will require about 74,000 valid voter signatures by April 14, 2024, in order to qualify for that year’s General Election ballot.

Idaho is one of just 12 states that continues to prohibit medical cannabis. Advocates have been pursuing medical cannabis reforms in the state for 10 years but the issue has yet to be properly considered by voters.

“One of the things that we’re looking at is making sure that those are available and legal, without necessarily presenting the opportunity for abuse. So it’s a combination of education on what the potential uses are, and responsible use.” — Joe Evans, treasurer for Kind Idaho, via KTVB

Kind Idaho plans to gather the necessary signatures through events across the state where activists will canvass for the petition, educate voters about the initiative, and grow their social media presence. The group believes they will be able to meet the necessary signature threshold to put the issue on the ballot, which is set at 7% of the state’s voters.

“We want the opportunity for Idaho residents to succeed on their own terms,” Evans said in the report. “And for many of those people on their own terms, the best solution is medical marijuana.”

A poll earlier this month found that 68% of Idaho voters believe that medical cannabis should be legalized.

 

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Indian Police Blame Rats for Disappearance of 500kg of Cannabis

Police in northern India claim that up to 500 kilograms (about 1,100 pounds) of confiscated cannabis, which had been stored in police stations and warehouses, have been eaten by rats, CNN reports.

According to court documents, officials in Mathura, Uttar Pradesh, had requested 386 kg of confiscated cannabis but police returned saying that at least 200 kg were missing and potentially up to 700 kg had been further “impacted,” all due to the rat infestations which reportedly ran rampant throughout local police stations and facilities.

According to court documents acquired by CNN: “There’s a rat menace in almost all police stations. Hence, necessary arrangements need to be made to safeguard the cannabis that’s been confiscated.”

The judge hearing the case confirmed that police blamed rodents for the disappearance of 500 kg of cannabis which had been confiscated and stored in the Shergarh and Highway Police Station in Mathura.

“Rats are small animals, and they aren’t scared of the police.” — Mathura court note, via CNN

But while feasting rats were officially named the culprit in court, CNN reports that Mathura City Police Superintendent Martand Prakash Singh said later that the cannabis had been “destroyed by rains and flooding.”

“There was no reference to rats in the (report submitted to the court),” the police superintendent said in the report.

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Police Arrest Man Suspected of Quadruple Homicide at Oklahoma Cannabis Farm

Police in Miami Beach arrested a man on Tuesday who is suspected of killing four people last weekend at an Oklahoma cannabis farm, the Associated Press reports.

The suspect, Wu Chen, was taken into custody without incident yesterday “after a car tag reader flagged vehicle (sic) he was driving,” the Oklahoma State Bureau of Investigation (OSBI) said in a Facebook post. He is expected to be extradited back to Oklahoma where he will be charged with murder and shooting with intent to kill.

The still unidentified murder victims include three men and one woman, all Chinese citizens, who authorities say appear to have been “executed.” Their bodies were discovered Sunday night on a 10-acre licensed cannabis farm west of Hennessey, about 55 miles northwest of Oklahoma City, according to the report. A fifth victim, also a Chinese citizen, survived the attack and was brought to a hospital.

Following the discovery, investigating authorities in Oklahoma said that they had a suspect in mind for the quadruple homicide but they withheld the name for safety purposes.

“The suspect was inside that building for a significant amount of time before the executions began,” OSBI said in a news release on Tuesday. “Based on the investigation thus far, this does not appear to be a random incident.”

Local police had initially responded to a reported hostage situation, according to the report.

A spokesperson for the Oklahoma Medical Marijuana Authority confirmed to the AP there was an active medical cannabis cultivation license registered to the location of the murders but officials did not identify the business.

“It being a marijuana farm, obviously Oklahoma state law requires that they have a license from the Oklahoma Medical Marijuana Authority and from us. One of the things we’re looking at is, is it obtained legally or was it obtained by fraud? So that’ll be part of our investigation.” — Mark Woodward, spokesman for The Oklahoma Bureau of Narcotics and Dangerous Drugs Control

Oklahoma voted to legalize medical cannabis in 2018 and the industry expanded quickly at first thanks to the state’s looser licensing restrictions than most other U.S. medical cannabis programs.

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FDA Sends Warning Letters to Five Companies for Illegal CBD Food and Beverage Sales

The federal Food and Drug Administration (FDA) has posted five warning letters to companies that it says have been selling illegal CBD food and beverage products online, according to an FDA press release.

The agency says the products in question are dangerous because “people may confuse [them] for traditional foods or beverages which may result in unintentional consumption or overconsumption of CBD. CBD-containing products in forms that are appealing to children, such as gummies, hard candies and cookies, are especially concerning.”

The five companies which received FDA‘s warning letters include:

  • 11-11-11 Brands
  • Naturally Infused LLC
  • Newhere Inc dba CBDFX
  • Infusionz LLC
  • CBD American Shaman, LLC

The agency said it asked the companies to respond within 15 working days and explain how they plan to address the issues outlined in the warning letters, and why they believed the products in question were not in violation of federal law. The agency said failure to adequately address the violations could lead to further and more severe enforcement actions.

FDA, which regulates the federal hemp industry including hemp-derived cannabinoids such as CBD, has notified industry participants multiple times including most recently a warning against consumer products containing hemp-derived delta-8 THC, which has yet to be thoroughly studied. FDA has also warned at least two companies against making claims that their CBD products can help treat opioid addiction.

 

 

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Rhode Island Adult-Use Cannabis Sales Launch Next Week

The launch of Rhode Island’s retail cannabis industry is officially set for next Thursday, December 1, WPRI reports.

Consumers aged 21 or older will be able to purchase cannabis products from five of the state’s six licensed medical cannabis “compassion centers” after officials approved hybrid retail cannabis licenses on Tuesday for each company that had applied for one. The new licenses will allow the retailers to sell cannabis products for both the medical and adult-use markets.

Rhode Island officials awarded licenses to the following cannabis compassion centers:

  • Aura of Rhode Island (in Central Falls)
  • Thomas C. Slater Center (in Providence)
  • Mother Earth Wellness (in Pawtucket)
  • Greenleaf Compassionate Care Center (in Portsmouth)
  • RISE Dispensary (in Warwick)

Gov. Dan McKee called the licensing step a “milestone” for the state denoting that its “entry into this emerging market was done in a safe, controlled and equitable manner.”

“It is also a win for our statewide economy and our strong, locally based cannabis supply chain, which consists of nearly 70 licensed cultivators, processors and manufacturers in addition to our licensed compassion centers.” — Gov. McKee, via WPRI

Rhode Island became the 19th state to legalize adult-use cannabis in May after state lawmakers approved a legalization bill which was signed into law promptly by the governor. Under the measure, adults aged 21+ can purchase and possess up to an ounce of cannabis and keep 10 ounces at home for personal use. Adults can also home-grow up to six plants, including three mature and three immature plants. The state plans to license 33 cannabis retail locations in total and impose a 10% excise tax on the industry alongside the state’s 7% sales tax, with an additional 3% tax which will go to municipalities.

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Oregon Gov. Pardons 45,000 People for Cannabis Possession

Oregon Gov. Kate Brown (D) on Monday said she is pardoning more than 47,000 cannabis possession convictions in a move that will affect about 45,000 individuals, The Oregonian reports. The move will delete simple possession convictions for an ounce of cannabis or less dated prior to 2016, which is when the state’s cannabis legalization law took effect.

Brown said her reasoning behind the pardons was “to right the wrongs of a flawed, inequitable, and outdated criminal justice system.”

“Oregonians should never face housing insecurity, employment barriers, and educational obstacles as a result of doing something that is now completely legal, and has been for years. My pardon will remove these hardships. And while Oregonians use marijuana at similar rates, Black and Latina/o/x people have been arrested, prosecuted, and convicted at disproportionate rates.” — Gov. Kate Brown, in a statement

Oregon‘s state-level cannabis pardons come after President Joe Biden (D) pardoned all federal cannabis possession charges earlier this year and called for the governors of each state to follow suit. So far, Gov. Tom Wolf of Pennsylvania and Gov. Andy Beshear of Kentucky, both Democrats, have announced mass pardons for simple cannabis possession charges while Indiana Gov. Eric Holcomb, a Republican, said he will not pardon low-level cannabis possession charges in the state.

An October poll found that a majority of Americans supported Biden’s move to pardon low-level cannabis offenses.

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Activists Rally to Keep Cannabis Decriminalized In Thailand

Cannabis supporters, growers, and smokers rallied on Tuesday outside of Government House in Bangkok — the headquarters for Thailand’s national government — in an attempt to dissuade authorities from recriminalizing the plant, the Associated Press reports. About 200 advocates were present for the rally which took place due to concerns that officials may roll back the country’s cannabis decriminalization reforms.

“We want to ensure that these politicians are not trying to put cannabis on the narcotics list again. If that happens, our fight for years will mean nothing.” — Akradej Chakjinda, coordinator for the cannabis support network Cannakin, via the Associated Press

Thailand effectively decriminalized cannabis in February after the government dropped the plant from the nation’s narcotics list. In June, lawmakers took steps to legalize the trade and cultivation of cannabis at the national level and approved the sale of products containing less than 0.2% THC — officially, cannabis plants and cannabis-based products are legal but not for recreational use. But despite polls showing a majority of Thai citizens in support of the reforms, calls for reigning in the country’s bustling new cannabis industry have become more common as the unofficial recreational market gets both larger and bolder.

Tuesday’s rally at Government House was scheduled to coincide with the national Narcotics Control Board meeting there to discuss potential changes to the country’s cannabis reform laws.

Earlier this month, Thailand‘s Public Health Ministry already announced stricter rules regarding the promotion and sale of adult-use cannabis products, according to the report.

 

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Utah Seeks to Ban Synthetic Cannabinoids In Medical Cannabis Products

Utah’s Department of Agriculture & Food, which oversees the state’s medical cannabis program, is asking state lawmakers to ban synthetic cannabinoids from products sold in Utah’s regulated medical cannabis market, FOX 13 reports.

The request follows anecdotal reports of some patients experiencing reactions to products containing synthetic cannabinoids. Medical cannabis supporter Christine Stenquist, the founder of Together for Responsible Use and Cannabis Education (TRUCE), told FOX 13 that patients deserve to know what’s in the products they are using and whether they are “safe for human consumption,” but there’s just “not enough evidence.”

The Legislature could initiate the ban as early as January, which marks the launch of Utah‘s next legislative session, and the proposal is not expected to face much resistance from lawmakers, according to the report.

Dr. Brandon Forsyth, who heads the Department of Agriculture & Food’s medical cannabis program, said in the report that synthetic cannabinoids are typically common wherever cannabis extracts are being processed.

“We ultimately decided to push forward legislation to just limit [synthetic cannabinoids’] presence since nobody really wanted them there anyway.” — Dr. Forsyth, via FOX 13

While Utah grapples with whether to allow synthetic cannabinoids in the state’s regulated cannabis market, a Project CBD report published earlier this year detailed the creation of synthetic cannabinoids using an organic chemistry process called chirality, “which is rooted in simple elements of geometry,” and discusses its undiscovered possibilities and potential pitfalls.

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New York Awards First 36 Retail Cannabis Licenses

The New York Office of Cannabis Management issued adult-use cannabis retail licenses on Monday to 36 applicants including 28 “justice-involved” individuals and eight nonprofit organizations.

The candidates were chosen from a pool of 903 applicants, each vying for one of the state’s 175 anticipated retail cannabis licenses. Officials plan to issue 150 of the licenses to businesses with the remaining 25 being reserved for nonprofits. The first licensing wave was reserved for businesses owned by people who were disproportionately affected by the drug war.

The regulatory body also posted on Twitter that it would allow qualifying businesses to start with delivery services. “This will help jumpstart sales and enable these small business owners to generate capital and scale their operations,” OCM tweeted. Officials have previously stated that they intend for legal adult-use sales to launch by the end of the year.

The OCM listed the winning applicants by their application numbers (not company names) but according to a New York Times report, at least three New York City-based nonprofits were included including LIFE Camp, which would become the first Black woman-led nonprofit to receive a license.

New York‘s retail cannabis licensing process was delayed earlier this month after a Michigan-based cannabis company filed a lawsuit against the state’s licensing requirements.

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Bipartisan Bill Would Reschedule ‘Breakthrough Therapy’ Psychedelics & Improve Research

Sens. Cory Booker (D-NJ) and Rand Paul (R-KY) introduced a bill last week for the federal lame-duck legislative session that would boost research opportunities for psychedelic substances with a “breakthrough therapy” designation from the FDA, Marijuana Moment reports. The bipartisan Breakthrough Therapies Act would update the Controlled Substances Act to reschedule potential new drug candidates like psilocybin and MDMA from Schedule I to Schedule II as they are flagged by the FDA, in turn improving new drug research and development opportunities.

Sen. Paul said in a press release he was “proud” to propose a bipartisan solution to “make it easier for researchers to conduct studies that can lead to breakthrough therapies to treat patients battling serious and life-threatening conditions.”

The proposal shadows a trend of psychedelics reform including statewide legalization votes in Oregon and Colorado and significant decriminalization reforms in many U.S. cities such as Denver, Oakland, Seattle, and Washington D.C.

“Recent studies suggest that some Schedule I substances such as MDMA and psilocybin could represent an enormous advancement for the treatment of severe post-traumatic stress disorder, depression and addiction. Unfortunately, regulatory red tape and a series of bureaucratic hurdles involved in studying Schedule I substances impedes critical research on these and other promising Schedule I compounds.” — Sen. Cory Booker, in a press release

The bill’s introduction also coincided last week with the launch of the bipartisan Congressional Psychedelics Advancing Clinical Treatments (PACT) Caucus — formed by Reps. Lou Correa (D-CA) and Jack Bergman (R-MI) — which seeks not to legalize or regulate psychedelic substances but to educate lawmakers and the public about their therapeutic potential.

Additionally, Congress last week passed the Medical Marijuana and Cannabidiol Research Expansion Act, the country’s first-ever standalone cannabis reforms bill, which will expand research opportunities into medical cannabis and protect doctors while discussing the risks and benefits of cannabis with their patients.

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DC Bill Would Offer Unregulated Cannabis Shops Access to Retail Licenses

This article was written by Gaspard Le Dem (@GLD_Live on Twitter) and originally published by Outlaw Report.

D.C.’s unlicensed cannabis storefronts — familiarly known as gifting or “I-71” shops — have dodged multiple attempts over the last year by local leaders to crack down on their business.

Earlier this year, they repeatedly locked horns with D.C. Council Chairman Phil Mendelson, who tried passing emergency legislation to shut them down and blasted them as illegal operations run by Big Weed companies from outside the District.

In the end, the gray market came out on top: Mendelson’s crackdown bills failed to pass and a proposed city task force to investigate gifting shops never saw the light of day. But it took persistent pushback from groups like the I-71 Committee and Generational Equity Movement, who aggressively lobbied the council and rallied business owners against efforts to mess with their industry.

Now, those efforts appear to be bearing fruit. Recent amendments to a comprehensive cannabis bill introduced last year by Mendelson on behalf of Mayor Muriel Bowser could offer gifting shops a path to legality by folding them into the District’s regulated market for medical cannabis.

Initially, the Medical Cannabis Amendment Act sought to permanently loosen regulations on medical weed businesses by, among other provisions, allowing dispensaries to deliver pot and eliminating a cap on the number of plants cultivators can grow. It also aimed to further social equity by allowing people convicted of certain weed offenses to participate in the industry.

But last month, the council’s Committee on the Judiciary and Public Safety dramatically expanded the bill’s scope by adding a slew of provisions that, if enacted, would be even more transformative for D.C.’s cannabis industry.

Most notably, the amendments would allow unlicensed cannabis businesses to obtain “transitional licenses” from D.C.’s Alcoholic Beverage Regulation Administration, which oversees the District’s medical weed program. To qualify, gifting shops would need to meet some basic requirements, like having a valid business license, being at least 60% owned by one or more D.C. residents, being located more than 300 feet from a school, and more than 400 feet from another dispensary.

The amendments, buried deep in a 253-page committee report published Oct. 21, caught many cannabis industry stakeholders by surprise. And while some have welcomed the idea of easing unlicensed weed businesses into the legal market, others see it as an unfair proposal that would reward bad actors while punishing businesses that have played by the rules.

Gifters are skeptical

Gray market supporters say D.C.’s gifting shops employ hundreds of Black residents who have disproportionately been targeted by punitive cannabis laws, and that allowing unlicensed vendors to join the legal market is a matter of repairing the damage of the War on Drugs.

Yet gifting industry groups have been quick to voice their discontent with the amended bill, and have complained it was drafted without input from unlicensed vendors.

“We don’t oppose the creation of transitional licenses,” Terrence White, Chairman of the I-71 Committee, said in a statement emailed to The Outlaw Report. “This is something we’ve advocated for since our founding. However, we believe that this was hastily developed with not enough thought put into how it will actually be implemented.”

Chief among White’s concerns is that gifting businesses would be forced to close while they wait for regulators to grant them transitional licenses.

“This means that legacy operators would have to sit on their properties/pay rent for an undetermined amount of time, lay off their employees, and wait until ABRA sets guidelines for compliance before legacy brands are able to continue operations,” he said.

The amended bill doesn’t specify whether gifting shops would need to close while waiting for ABRA to grant them transitional licenses, but the I-71 Committee says that lack of clarity is part of the problem.

“It is incomplete, missing important details and dates to protect minority and legacy operators, and imposes crippling penalties that will harm the current I-71 businesses,” said White.

He also criticized Mendelson and his staff for not taking the I-71 Committee’s suggestions into account while drafting the bill. “We have met with them on a number of occasions and provided our suggestions, but we were met with hostility,” White said.

A staffer for Mendelson did not respond to multiple requests for comment from The Outlaw Report.

Per the committee report, gifting shops would have a 60-day window to apply for a transitional license. If approved, they’d need to submit a “compliance plan” explaining how they intend to get up to speed with ABRA regulations. Regulators would then monitor the applicant business until the compliance plan is deemed fully implemented, at which point ABRA would issue a permanent dispensary license upon payment of a fee.

The amended bill would also create new civil penalties against businesses that operate without a cannabis license, allowing the mayor to seal their premises, slap them with fines of up to $20,000, and revoke their basic business licenses. Additionally, landlords who rent retail space to unlicensed businesses could be fined up to $10,000.

The report notes current enforcement methods have failed because federal prosecutors have repeatedly declined to prosecute charges brought by the Metropolitan Police Department, which routinely raids gifting businesses.

“In many cases, the owners simply relocate to a new location and resume operations,” the report says. “Given the ineffectiveness of criminal penalties, the [amendments] would provide a mechanism for reasonable civil enforcement […].”

Another concern for gifters is that D.C.’s existing medical cannabis market isn’t prepared to handle an influx of newly licensed dispensaries, particularly when it comes to supplying retailers with enough product.

“There are not currently enough cultivation centers equipped to supply the drastic increase in product demand that would be needed when legacy operators transition into medical dispensaries,” White said.

A possible boon for cultivators

For those existing cultivators, bringing gifting shops into the regulated medical market could be a huge financial boon. Currently, D.C. growers are allowed to sell their product — which is closely tracked by ABRA — only to the eight permitted medical dispensaries in the District. (A federal ban on moving weed across state lines blocks them from selling to retailers in other states.)

Meanwhile, gifting shops stock their shelves with pot from various unregulated sources, buying from local basement grow ops or from California’s booming market of unlicensed cultivators. With a transitional license from ABRA, however, gifters would be forced to buy pot exclusively from D.C.’s licensed cultivators.

“We’re really excited about it,” said Grace Hyde, chief operations officer at District Cannabis, a cultivation company based in Ward 7. “I think this is a really reasonable compromise to what everyone wants, which is to grow the market.”

Hyde said granting permits to gifting shops would allow D.C. to meet a surge in demand for cannabis. ABRA enacted new rules this year allowing District residents to sign up for medical weed without a doctor’s note, and even authorizing tourists to shop at licensed dispensaries.

“We need more variety, brands and types of stores,” Hyde said. “Our existing dispensaries are great, but there’s only seven of them, and there’s a lot of people in the District of Columbia.”

“The more the merrier,” she added.

But most importantly, Hyde said, granting licenses to gifting shops would help build a more socially equitable weed industry in the District.

“The I-71 stores have been saying for years, ‘we want to be regulated, give us a license,’” Hyde said. “This makes their license acquisition about as easy as it could reasonably be.”

A blessing and a curse

For D.C.’s existing licensed dispensaries, gifting businesses joining D.C.’s legal cannabis market could be a blessing and a curse.

On the one hand, it would create more direct competition in a relatively small market that has struggled with stagnating patient registrations and high taxes that cut into dispensaries’ profit margins. On the other hand, licensed dispensaries are already competing with gifting shops, which don’t pay cannabis taxes and aren’t subject to ABRA regulations, and integrating them into the medical market could level the playing field by forcing them to play by the same rules as licensed operators.

Norbert Pickett, the CEO and owner of Cannabliss, a licensed medical dispensary in the Northeast D.C. neighborhood of Deanwood, says gifting shops should be required to close their doors until they are granted a transitional license.

“There’s kind of no way around it,” said Pickett. “If you don’t have a license, that’s the law, you can’t operate.”

He said businesses that are granted transitional licenses would need to be closely monitored to ensure they are following the same regulations as existing dispensaries.

“They’re going to have to abide by those same laws if they want to become part of the market,” Pickett said.

He added that ABRA should make sure neighborhoods aren’t saturated with weed businesses to avoid creating unnecessary competition. Gifting businesses have over the years flocked to busy nightlife districts like Northeast’s H Street Corridor or the 18th Street Corridor in Adams Morgan, at times creating tensions with some residents who see them as a nuisance.

“The question is, how many are there going to be per ward so that we’re not encroaching on each other?,” Pickett said.

The deadline to pass the bill is fast approaching. The council’s current 2021-2022 legislative period ends next month, and the measure still needs approval from the council’s Committee on Business and Economic Development before it can be scheduled for a full vote.

At a Q&A session with the D.C. Cannabis Business Association on Monday, ABRA Director Fred Moosally said the agency could start rolling out transitional licenses as early as February, provided the council and mayor approve the bill, and that it clears the required 45-day congressional review process for new D.C. laws.

ABRA did not answer specific questions from The Outlaw Report about transitional licenses and how the agency would implement them, but a spokesperson said it is prepared for a shift in local weed regulations.

“ABRA will be prepared to implement any medical cannabis legislation passed by the DC Council and signed into law by Mayor Muriel Bowser,” a spokesperson said.

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Cannabis Brand to Sponsor Professional Hockey Team

Chicago-based cannabis company Verilife has signed a one-year sponsorship with the Chicago Wolves of the American Hockey League (AHL), Ad Week reports. The Wolves, affiliates of the Carolina Hurricanes of the National Hockey League (NHL) are the 2022 Calder Cup champions and have won the championship three times since 2022. 

According to Ad Week, more than 900,000 fans watch the team’s games per season.   

In May 2021, the company announced a partnership with Chicago Cubs legend and Major League Baseball (MLB) Hall of Famer Ryne Sandberg. 

Erika Salgado Guerra, chief marketing officer at PharmaCann, the parent company of Verilife, told Ad Week that the deal with Sandberg “opened the door” for the company’s sponsorship with sports teams and players. 

“…These are baby steps but, if done properly, they can be a big step for where the industry is going. Cannabis combining efforts with a smaller league is how we’ll get to the future.” — Salgado Guerra to Ad Week 

Salgado Guerra told Ad Week that the Wolves approached the company after seeing the partnership with Sandberg play out and called the deal “one of the fastest approvals” of her career.  

The brand will have a presence at the Allstate Arena in Rosemont, including the Jumbotron, scoreboard, digital banners, dashboards, LED screens, and televisions throughout the venue. The partnership also includes a charitable component to benefit Facing Forward to End Homelessness, a Chicago nonprofit organization dedicated to ending homelessness in the city, according to a Forbes report. 

Chris Friederich, senior executive of corporate partnerships with the Wolves, told Forbes that it is “going to be fantastic” to see how much money the partnership would raise for Facing Forward. 

“The Chicago Wolves and Verilife are both dedicated to helping the communities in which we live and work,” he said, “and we are grateful for the opportunity to help people experiencing homelessness through this sponsorship.” 

Last month, MLB announced a partnership with CBD company Charlotte’s Web to make the brand the “Official CBD of Major League Baseball.” MLB is the first major league sports association to announce a partnership with a company in the cannabis space. 

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Oregon Firm Files Lawsuit Challenging State Laws Against Cannabis Exports

An Oregon-based cannabis wholesaler has filed a federal lawsuit challenging the constitutionality of the state laws prohibiting cannabis exports and imports from other states, Marijuana Moment reports. In a letter sent by attorneys representing Jefferson Packing House, LLC to Gov. Kate Brown (D), Attorney General Ellen Rosenblum, and Oregon Liquor and Cannabis Commission (OLCC) Director Steven Marks, the attorneys wrote that they “recognize that marijuana is still illegal under federal law and that this lawsuit will not change that fact.” 

“However, we believe that the State of Oregon should be fully aligned with supporting its local marijuana industry,” the letter states, “and therefore that Oregon law should no longer prohibit the export of marijuana to other states.” 

The lawsuit, filed in the U.S District Court for the District of Oregon, notes that Congress is given the “exclusive authority” to “regulate commerce between the States” and under the dormant Commerce Clause, states “are prohibited from enacting laws regulating interstate commerce because it is the exclusive purview of Congress.”

Recently, the commerce clause was used by the U.S. Court of Appeals for the First Circuit to justify striking down Maine’s residency requirement to own a medical cannabis license. Experts believe that case may have wider implications for interstate cannabis trade, the report says. 

Another reason given for the lawsuit is that barring interstate cannabis commerce “harms not only Oregon growers, processors, and wholesalers, but also non-residents, who are denied access to the high-quality marijuana products created in Oregon unless they physically travel to Oregon,” the report says. 

The lawsuit notes the longstanding view by the Department of Justice that interstate cannabis trade is a prosecutorial offense and, as a result, many states have explicitly banned the practice to protect themselves from federal interference in their adult-use cannabis markets. However, the lawsuit says these laws “discriminate against interstate commerce by nakedly prohibiting such commerce, without any legitimate, nonprotectionist purpose, and are therefore prohibited by the dormant Commerce Clause of the U.S. Constitution.”

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