Kansas Senate Committee Tables Medical Cannabis Bill

3/23/2023

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A Kansas Senate Committee last week tabled a medical cannabis legalization bill, likely killing the bill for the session, the Associated Press reports. On Twitter, Democratic Gov. Laura Kelly said she was “disappointed that some legislators are saying they don’t want to move forward with legalizing medical marijuana this year – effectively turning their backs on our veterans and those with chronic pain and seizure disorders.” 

“If they get their way, for yet another year thousands of Kansans will be forced to choose between breaking the law and living without pain. I encourage Kansans to call their state legislators and tell them to legalize medical marijuana this session.” — Kelly via Twitter 

The measure would have allowed physicians to recommend non-smokable medical cannabis products to treat 21 illnesses or conditions, including cancer, epilepsy, spinal cord injuries or chronic pain, starting in July 2024. The legislation would have required both medical cannabis patients and their caregivers to register with the state health department to purchase cannabis at state-licensed dispensaries and the state would have imposed a 10% tax on medical cannabis sales. 

The House passed a medical cannabis bill in 2021, but the measure didn’t receive a committee vote in the Senate. 

Kansas is one of just four states where cannabis use of any kind remains outlawed. 

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Killeen, Texas Police Have Released 77% of Cannabis Offenders Since Local Decriminalization

3/23/2023

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Police in Killeen, Texas have released 77% of individuals they have come in contact with who were in possession of cannabis following the voter approval of a local decriminalization measure last November, the Killeen Daily Herald reports. Police Chief Charles Kimble said officers had contacted 188 individuals who “had some sort of marijuana on them” since the passage of the law. 

Of those 188 people, 146 were released “because it fell within the guidelines” of the voter-approved ordinance, while 42 people were arrested. Those that were released did have their cannabis seized.  

“In our policy … we are going to follow the law. We want to make this city safe by removing some of the worst violators off the streets of Killeen, and we think we are doing that even in the confines of this ordinance. This policy does not hamper that.” — Kimble via the Daily Herald 

Under the ordinance, police are not supposed to arrest anyone they find in possession of 4 ounces or less of cannabis. The measure was approved by nearly 70% of Killeen voters. In December, Kileen councilmembers amended the law to prevent city police officers from using the odor of cannabis as probable cause for search and seizure, the report says. 

Kimble presented the data during his first Marijuana Enforcement Ordinance Implementation Report, which included information from November 9, 2022, through February 28, 2023. 

County Commissioner Louie Minor said during Kimble’s presentation that the ordinance is doing what officials had hoped but said he would like future reports on the law’s implementation to include data on the race and age of those possessing cannabis when contacted by police and the result of that interaction.    

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Missouri Has Expunged 15,000+ Cannabis Crimes Since Adult-Use Reforms

3/22/2023

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Following adult-use cannabis legalization in Missouri, the state has granted more than 15,000 expungements of nonviolent misdemeanor and felony cannabis crimes, KMOV reports. Under the state’s voter-approved adult-use cannabis law, possession of up to three ounces is legal for adults and all eligible misdemeanors for individuals who completed their sentences must be expunged automatically by June 8, while low-level felonies must be expunged by December 8.  

Charges that included selling cannabis to a minor, violence, or driving under the influence are not eligible for relief. Individuals currently incarcerated for cannabis convictions, including past misdemeanors and Class E and D felonies involving possession of under three pounds, can ask the court to vacate the sentence, which would lead to an immediate release and the expungement of the record.

Individuals on probation or parole will have their records automatically expunged and all prior Class A, B, C, or D felonies for possession over three pounds will be expunged automatically after the person completes their sentence. 

In order to complete the expungements required under the law, the Missouri Office of State Courts Administration has submitted to the legislature a supplemental budget request for this fiscal year, asking for about $2.5 million in additional funds to cover overtime for clerks and hire additional information technology professionals, according to a KCUR report. In the request, the agency said it would also need $2.2 million in personal services dollars “for the increased workload of the courts, utilizing temporary staff and overtime.”  

The Court Administration said it would incur costs for expungements, sentences automatically vacated within specified timeframes, and creation of a special index of expunged cases. 

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Oklahoma Bill Would Let Medical Cannabis Agency Shut Down Non-Eco-Friendly Operations

3/22/2023

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The Oklahoma Senate on Tuesday passed a measure that would allow the director of the state Medical Marijuana Authority to shut down cannabis operations that are damaging the environment, KOKH reports. Sen. Joe Newhouse (R) authored the legislation and argued that it would help reign in medical cannabis operations in the state that are not following state law. 

“They’re flaunting our laws. They’re not taking care of our land. Many are abusing our environment, and we need to stop this. … “One of the tell-tale signs of black market operators is their destruction of the environment. There’s contaminants, there’s runoff, even sometimes human waste that’s not being taken care of.” — Newhouse via KOKH  

Oklahoma has one of the nation’s most permissive medical cannabis programs, but it has been rife with controversy. Last year, two Oklahoma attorneys were charged in a “Ghost Owner” scheme for putting their assistants’ names on more than 400 cannabis cultivation applications for non-residents. Later that year, four people – all Chinese citizens – were murdered at a cannabis farm. The suspect, Wu Chen, was also a Chinese national and the alleged straw owner of the farm, Richard Ignacio, was arrested and charged with felony conspiracy against the state. 

Travis C. Smith, the founder of Smokey Okie’s Cannabis, told KOKH that “there are thousands of illegal grows” in the state and that officials “could walk in and shut down overnight if they just visited them.” He added that he doesn’t think Newhouse’s law will do much to stop them.     

“This legislature is fired up to pass a lot of anti-cannabis legislation,” he said in the report, “but until start enforcing the rules they have, against, against the bad actors, passing more rules just isn’t going to make a difference.” 

The measure will be considered next by the House. 

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Bill to Add Autism and PTSD to Arizona Medical Cannabis Program Passes Committee

3/22/2023

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A bill proposed in Arizona would allow patients with autism and post-traumatic stress disorder (PTSD) to access medical cannabis products in the state, the AZ Mirror reports. The measure passed the House Health and Human Services Committee 7-2 on Monday. 

Earlier this month, the legislation was approved by a bipartisan 24-6 vote in the state Senate and will move next to the full House after approval by the Health and Human Services Committee. 

During testimony on the measure, Aaron Jacobs, the father of a nine-year-old son with severe autism, told the panel that cannabis therapy would be preferable for his son as the medications he currently uses include harsh side effects. 

“This is not about drugging our children so that they are manageable. This is about improving their quality of life, as well as the family’s quality of life, and the right to try a natural, plant-based medicine. … The potential to help regulate his nervous system naturally could lead to a better quality of life, and possibly some form of independence.” — Jacobs via AZ Mirror 

Because the state’s medical cannabis law was created via a constitutional amendment approved by voters, it requires two-thirds of lawmakers’ support in order to be changed. The 24 votes in the Senate are four more than required to change the law. In the House, the bill would require support from at least 40 members.  

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Blue River: A Terpene-Powered Cannabis Success Story

3/22/2023

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Blue River was founded in California as a cannabis-derived terpene company in 2015 by master extractor and inventor Tony Verzura. The company quickly took the then-nascent industry by storm and has since grown into a multi-state operation. In Spring 2023, the Blue River flagship retail store will open in Cambridge, Massachusetts. In the wake of its growth, Blue River remains family-owned and its business model centers on clean, innovative cannabis products.

Just after founding Blue River Terps, Verzura met his wife Jessica Pelletier, an entrepreneur who was working as a cannabis business consultant specializing in M&A, compliance, licensing, and general business strategy. When she met Verzura, Blue River was a Northern California brand beloved by consumers and revered by hash heads. The craft brand had a big following, and Verzura handled every detail of the business personally. When Pelletier joined the team, she saw an opportunity to pivot the business model to avoid the issues facing many family-owned Northern California cannabis companies. Knowing what she did about IP royalty leasing and brand expansion, Pelletier pitched a new direction for the operation.

Blue River shifted from a manufacturing company to a tech company in 2018. They lease their intellectual property to cannabis businesses with infrastructure proven to put products on retail shelves. “It completely changed our business model and really brought us mainstream, especially on the East Coast,” Pelletier said. “We were the first West Coast brand to launch in Florida and the East Coast in general. We partner up with MSOs that hold the same values as us, especially in the space of women-owned, women-led, commitment to diversity, and upholding the values in terms of the manufacturing side and not cutting corners in the cultivation.” The Blue River IP lease includes live rosin, vape carts, and patent-pending CBN but what is offered to consumers varies by state.

When implementing Blue River IP in new facilities, Verzura and the team are hands-on to ensure quality and brand continuity. Labs manufacturing Blue River products maintain constant communication with the cannabis inventor as he continues to R&D new products. Verzura is always testing new products like boba and astronaut ice cream. Pelletier describes eating five-star meals together and watching his mind race as it considers new flavors and methods with which to pair the cannabis terpenes. Some Verzura inventions can only be copped at pop-ups, some make it into the leasable product line, and some will only be available at Blue River farm-to-table dispensaries.

Eventually, Blue River’s founders were ready to differentiate the market and establish their own flagship retail dispensary. After five years spent pursuing a license and space in Cambridge, Massachusetts, the project is finally set to launch. Pelletier describes it as the culmination of their careers: “We are offering an entirely different dispensary experience. We’re launching ourselves as a farm-to-table destination dispensary.”

As they plan logistics, one primary concern is ensuring customers can find the same products every visit. This is an issue in many markets. In Washington state, for example, I am lucky to find the same flower product available at my neighborhood dispensary two visits in a row. Blue River plans to alleviate this common issue in Massachusetts by utilizing access to IP partner Trulieve’s supply chain. In addition, Verzura has been studying the plant for decades and has dialed in which genetics perform best in hash and which will push out quality flower to package. This knowledge is used to maximize quantity and quality while minimizing R&D time. All products available in Blue River will be completely solventless, and many will be Blue River originals. “We will be offering our signature line of products, so everything that made us famous on the West coast will only be available in our store,” Pelletier said. The store will carry other hand-selected Massachusetts brands with fifteen percent of shelf space reserved for economic empowerment and social equity companies.

The commitment to social equity carries over into staffing: Blue River hiring practices have always focused on those who have been directly harmed by the war on drugs through incarceration or familial incarceration. “It really plays into everyone’s desire to give back to the community that built us all. Anyone who is in the cannabis space, kind of like an OG, they started in that illicit market. So I think that it’s really important to not lose sight of where everybody got their roots from, to not lose sight that not everyone isn’t as lucky to make it out unscathed and have a flourishing business,” Pelletier said. “That’s why I feel that the hiring requirements and economic empowerment aspect of our business is really important. Not only do we get to make this incredible store that is very unique in concept and the first of its kind, but we also get to give back to the direct community through our hiring and incubator requirements of the state.” The company also focuses on hiring veterans, LGBTQ+, people of color, people with disabilities, and women.

Blue River is a Northern California cannabis success story that can be credited to recognizing their unique commodity and pivoting towards growth. Find Blue River products near you and check out the product line at blueriverterps.com. As for their flagship Massachusetts store, doors are expected to open sometime in March 2023 followed by a second location in Somerville.

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Texas Lawmakers Vote to Expand Medical Cannabis Program

3/21/2023

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Texas lawmakers in the House Public Health Committee advanced a proposal on Monday that would allow doctors to recommend patients who are experiencing chronic pain to the state’s medical cannabis program, Marijuana Moment reports.

The medical cannabis reforms bill by Rep. Stephanie Klick (R) would also remove the state’s THC cap for medical cannabis oils, replacing it with volumetric doses of 10mg of cannabis oil. Currently, Texas’s cannabis program only gives participating patients access to cannabis oil products with just 1% THC content.

The proposal originally sought to raise the state’s THC cap from 1% to 5% but lawmakers in the House Public Health Committee scrapped the cap entirely in favor of a system of volumetric dosages.

By adding chronic pain to the state’s list of medical cannabis qualifying conditions, the Texas program could expect to see a dramatic boost in patient numbers, particularly among those who are looking for treatment alternatives to opioids. The bill would also allow officials with the Texas Department of State Health Services to add additional qualifying conditions to the program later on.

Currently, only patients with one of nine debilitative conditions — epilepsy, multiple sclerosis, amyotrophic lateral sclerosis, spasticity, autism, cancer, a seizure disorder, an incurable neurodegenerative disease, and PTSD — can access the program.

The bill moves next to the Calendars Committee to be scheduled for consideration by the full House floor.

If fully approved, the bill would take effect starting September 1, 2023, the report said.

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New Political Action Committee to Back Candidates Who Support Psychedelics

3/21/2023

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A newly-formed political action committee aims to back candidates for office that back the use of psychedelics for therapeutic purposes, NBC News reports. The Psychedelic Medicine PAC also aims to secure federal funding to further education and research efforts for psychedelics but stops short of calling for full legalization or decriminalization of the substances.

In an interview with NBC News, Ryan Rodgers, co-founder and executive director of Psychedelic Medicine PAC, said the group has “to convince a historically stubborn audience around psychedelics that it’s not the 1960s.”

“People aren’t going to stare into the sun for their eyes to blow out. People aren’t going to jump off a building. This is about healing trauma. It’s not about recreation.” — Rodgers to NBC News

 Melissa Lavasani, the group’s co-founder and executive director, told NBC News that “a research approach and a science-drive approach is really the path of least resistance.”

“It’s going to take a little longer – it’s a very slow approach and it’s very methodical what we’re trying to do,” she said, “but it’s a way to ensure people feel comfortable buying into this issue.”

The group is in the early stages of fundraising but aims to raise $10 million in the first year.

Dustin Robinson, founder of Iter Investments, a psychedelics venture capital firm, told NBC News that the group is “going to have an extremely hard time” if they pushed for federal reforms such as decriminalization or rescheduling.

“But if their goal is to create more policies around what’s happening with psychedelics in the therapeutic space, the federal government appears very open to that,” he said in the report.

So far, Oregon and Washington, D.C. voters have approved reforms to allow the therapeutic use of psychedelics. Last year, the Biden administration indicated it was considering the possibility of creating a task force to study psychedelics, anticipating the Food and Drug Administration would approve psychedelic therapies in the coming years.

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Illinois Made $36.1M Last Year from Wisconsin Residents Crossing the Border to Buy Cannabis

3/21/2023

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Illinois made $36.1 million last year in tax revenues from cannabis sales by Wisconsin residents, according to a memo from the Wisconsin Legislative Fiscal Bureau (LFB). The report came at the request of state Sen. Melissa Agard (D) who has been pushing for cannabis legalization in the state since 2013. 

According to the LFB report, citing Illinois Department of Financial and Professional Regulation (IDFPR) data, Illinois dispensaries made $1,552.3 million in cannabis sales – excluding tax revenue – in calendar year 2022. The IDFPR indicates that $239.7 million, or 15.4%, of those sales were generated by dispensaries located in counties bordering Wisconsin.  

“Of the sales made in counties bordering Wisconsin, $121.2 million, or 50.6%, of these sales were to out-of-state residents. Relative to marijuana sales statewide, approximately 7.8% of total cannabis sales revenue in Illinois came from sales made to out-of-state residents in counties bordering Wisconsin in calendar year 2022.” — LFB memo, “Illinois Marijuana Tax Collections on Sales and Estimated Wisconsin Residents,” Mar. 10, 2023 

A February Wisconsin Policy Forum report found that half of the state’s residents aged 21 or older – or about 2.16 million people – already live within 75 minutes of an adult-use dispensary in either Illinois or Michigan and another 30% live within an hour’s drive.    

The IDFPR analysis provided in the memo assumes that all sales to out-of-state residents in Illinois counties bordering Wisconsin were made to Wisconsin residents and estimates that such sales constitute 7.8% of total Illinois cannabis-related tax revenue. The memo notes that “it is possible that not all sales to out-of-state residents in counties bordering Wisconsin were made to Wisconsin residents.”  

In a statement, Agard said that Wisconsinites should be “upset” that their “hard-earned tax dollars are going across the border to Illinois.” 

“This is revenue that could be going toward Wisconsin’s public schools, transportation infrastructure and public safety,” she said. “Instead, Illinois is reaping the benefits of Republican obstructionism and their prohibitionist stance on marijuana legalization.” 

Agard added that Wisconsin is “an island of prohibition and the people of our state are hurting because of it.”  

“As seen in our neighboring states, legalizing marijuana for responsible adult usage will generate significant revenue for our mainstreets, safely regulate the existing illicit market, reinvest in our agriculture and farming heritage, support entrepreneurship, and address the massive and egregious racial disparities from marijuana prohibition,” she said in the statement. 

Democratic Gov. Tony Evers has included cannabis legalization in his annual budget proposal. In 2021, he was teased by Illinois Gov. J.B. Pritzker who thanked him for the tax revenues provided to the state by Wisconsin residents who cross the border to buy cannabis. 

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Nevada Bill Would Allow Cannabis Vending at Some Events

3/21/2023

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A bill introduced in Nevada aims to allow mobile cannabis vendors at events that are 21-and-up, KSNV reports. The measure would create licenses for vendors to sell cannabis at certain events, like concerts, if the licenses are permitted by municipalities. 

Under the proposal, social-equity applicants would receive priority for the licenses. A’Esha Goins, founder of the Cannabis Equity and Inclusion Community, which is lobbying for the bill, told KSNV that the licenses would remove the huge financial burden for social equity applicants seeking other industry opportunities.  

“This is the Nevada. This is truly what we do we introduce small businesses. We establish new ideologies. We are innovated when it comes to how businesses show up. So yes, I think this is the next wave.” — Goins to KSNV 

The bill would permit the state Cannabis Compliance Board to create license rules and requirements and allow it to impose fees. The measure was referred to the Assembly Judiciary Committee on March 7.

Among all of the states that have legalized cannabis for adult use, California is the only state so far that explicitly allows cannabis to be sold at concerts and other live events. In New York, cannabis consumption is allowed anywhere tobacco can be consumed, which broadens opportunities for cannabis consumption at many outdoor events. 

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The Next Generation Of Cannabis Processing: Automated Trimmers

3/21/2023

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As the legalization of cannabis expands within the US and abroad, cultivators are continually seeking ways to improve their processes and operations. As a result of this, the cannabis industry has seen a significant shift in recent years as the demand for high-quality products continues to rise.

One of the most significant changes is the shift from manual cannabis processing and hand trimming to machine trimming and automated processes. This shift has led to increased efficiency and consistency in the production process, while also improving the quality of the end product.

The History of Cannabis Trimming

Cannabis trimming has a long history that dates back centuries. The earliest recorded consumption of cannabis traces back to Asia, where it was used in religious ceremonies and as a medicine. Even back then, cannabis plants were being trimmed by hand to discard excess material that was not needed for those ceremonies or medicinal purposes.

From those early days of cannabis through the rise of commercial cultivation in the 20th century, hand trimming became the industry standard practice for preparing flower for sale. Businesses would hire a team of hand trimmers to manually cut and trim the buds to their desired shape and appeal.

As the industry grew and market demand increased, it became clear that manual trimming was inefficient and time-consuming, and cultivators adapted their practices to welcome new technologies that would help them with their volume of harvests and efficiency of processing. This led to the development of the first machine trimmers, which were introduced in the late-1900s.

A New Age of Cannabis Processing

The first-generation machine trimmers were crude and inefficient, and they often damaged the buds, resulting in a lower-quality end product. Over time, however, technology and machine trimmers became more advanced, with improved cutting systems, better control over speed and flow, and more precise sensors.

Today, machine and automated trimming is the preferred method for large-scale cannabis cultivation and commercial facilities, with many cultivators using high-tech trimmers like the Mobius M108S to streamline their production processes and improve the quality of their flower.

Farms that choose manual processing require a large team of seasonal hand trimmers to take the flower from harvest to sale-ready product. Trimming by hand is a tedious, labor-intensive process that requires hours of work each day and ample experience. Workers with varying levels of experience will trim the buds to different degrees, leaving inconsistent results across the same harvest.

While some individual, boutique, and smaller operators may still utilize hand trimming to process their harvest, most cultivators and commercial growers have switched to machine trimming their flower.

Automated Cannabis Trimming Machines

Automated cannabis trimmers like the M108S are designed to trim flower with precision and speed. The Mobius Trimmer is capable of processing up to 120 lbs per hour and can process both wet and dry flower to accommodate any operation. The M108S is equipped with surgical-grade stainless steel bed knives that flex against the helical blades, ensuring the two cutting edges remain in constant contact with each other, resulting in no gaps or dead spots.

Automated machine trimmers provide increased efficiency, as they can trim significantly more than what can be achieved through manual hand trimming. The trimming timeline is greatly reduced, with full commercial-scale harvests being processed in a few hours versus days or weeks. As a result, flower goes from harvest to sale in a fraction of the time, and cultivators can deliver product on a regular and consistent basis.

In addition to faster processing times and increased efficiency, machine trimming also allows for reduced labor costs and improved working conditions. With a trimmer like the M108S, cultivators and cannabis processors can save thousands on seasonal employees and reduce risks like theft and repetitive strain injuries.

An automated cannabis trimmer like the M108S Trimmer delivers high-quality results. With premium features that come standard with the machine, cultivators can ensure an ultra-consistent trim and optimal bud quality. With this, producers have a steady flow of product going out and profit coming in, allowing for growth and further automation implementation.

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Court Rules Insurers May Reimburse Injured Workers for Medical Cannabis

3/20/2023

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A Pennsylvania appeals court last Friday ruled that the state’s medical cannabis law does not prohibit insurers from reimbursing injured workers for medical cannabis in cases where it is used to treat accepted work-related injuries, according to a Business Insurance report. The Pennsylvania Commonwealth Court decision found that the state’s Workers’ Compensation Appeal Board erred when it upheld a decision by Firestone Tire & Rubber to deny reimbursement for the cost of an employee’s medical cannabis. 

The claimant, Paul Sheetz, who is now deceased, used medical cannabis to treat chronic pain linked to a 1977 work injury and used cannabis to wean from decades-long use of prescribed opioids, the report says. 

Jenifer Kaufman, the attorney who represented the Sheetz’s estate, said after the ruling that the decision “is a game-changer for those injured workers who have worked hard to get off dangerous and expensive opioids and are forced to pay the cost of medical marijuana treatment out of their fixed incomes.” 

“I am so excited that the Commonwealth Court, in their wisdom, agreed that workers comp carriers are required to reimburse injured workers who use medical marijuana to treat severe and often life-long injuries.” — Kaufman via Business Insurance 

Kaufman added that the court’s ruling means insurers must cover medical cannabis costs when treatment is deemed “reasonable and necessary,” and that reimbursement would likely only be available in serious or old injury cases where medical cannabis is the “primary treatment modality.”     

Firestone had argued that reimbursing medical cannabis costs would run afoul of federal law; however, the court concluded that it is not a federal crime because insurers are not recommending cannabis themselves. 

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Hemp Company Sues Partner Over Alleged ‘Ponzi Scheme’

3/20/2023

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A New Jersey hemp company is suing a Massachusetts biotech company claiming it operated a “Ponzi scheme” by using more than $700,000 it raised from the firm to fund its own projects, Salem News reports. In its lawsuit against the Salzman Group, Delta Technologies claims the drug development company took their money and used their machinery in other, failed, projects. 

According to the lawsuit, Salzman Group Chairman and CEO Dr. Andrew Salzman agreed to put together a “large team of scientists” to help Delta and its manager, Alexander Jacobs, obtain a patent to produce different types of hemp products. Jacobs and Delta agreed to pay the Salzman Group $20,000 per month for the project. The lawsuit alleges that, at first, Salzman told Jacobs that the team had made “dramatic” short-term progress, but the lawsuit contends that Salzman eventually stopped giving Jacobs updates or providing evidence of progress toward a commercially viable product. 

The lawsuit contends that Jacobs also agreed to provide cash to the Salzman Group to start a small laboratory in Beverly, Massachusetts to produce a “rare cannabinoid” to sell in Europe and “across the world” but Jacobs said the Salzman Group “never delivered the product on time,” and the deliveries that were made were “too small” to fulfill all of Jacob’s clients’ orders. In the lawsuit, Jacobs said he learned later that Salzman had never moved the product’s production to the Beverly laboratory. Jacobs also claims that the machinery provided to the project was never returned and that Delta has been unable to retrieve them.  

The lawsuit accuses the Salzman Group of intending to defraud, and defrauding, Delta “out of hundreds of thousands of dollars to pursue their own interests” with “no intent to ever produce the product plaintiffs needed.” The lawsuit accuses the Salzman Group of breach of contract and fraud. 

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Washington Bill Would Create New Social Equity Cannabis Licenses

3/20/2023

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A bill proposed in Washington state would add about 100 retail adult-use cannabis dispensary licenses which would be set aside for social equity applicants, KING 5 reports. The measure is backed by the state Liquor and Cannabis Board (LCB) which recently reported that 92% of cannabis license holders in the state are White and just 4% of retail cannabis licenses went to Black applicants.  

The measure is sponsored by State Sen. Rebecca Saldaña (D) who told KING 5 that the state’s cannabis program “really set it up so that the people that can participate were people that had deep pockets or access to a lot of money” and that officials weren’t going to add any new licenses until they “looked at social equity.”  

Under the measure, the licenses could be used in any Washington city or county that allows adult-use cannabis sales. The new licenses could be used for retail sales or retail cultivation. 

“Once they get the license, they have a time period to be able to find the location, because otherwise you’re paying rent, trying to build it out, and not making any income during that time period. So this gives them a chance to have a little bit more flexibility.” — Saldaña to KING 5 

Even without the passage of the bill, social equity applicants will get priority for about 40 licenses that remain unused or were revoked by the LCB under guidance issued by the agency last year. However, many of those license are in jurisdictions that do not allow adult-use sales within their borders, the report says. The LCB also changed the scoring rubric for cannabis license candidates, giving more weight to applicants with prior drug arrests, or those who previously owned a medical cannabis dispensary. 

On March 1, the LCB opened a 30-day window for social equity applicants to submit their applications for unused or revoked licenses. 

 

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SEC Charges Cannabis Company and CEO with Fraud

3/17/2023

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The U.S. Securities and Exchange Commission (SEC) on Thursday charged cannabis cultivation and distribution company American Patriot Brands (APB), its chief executive officer Robert Y. Lee, and five other entities and individuals with fraud. The agency also charged current and former executives Brian L. Pallas and J. Bernard Rice and APB subsidiaries DJ&S Property #1 LLC, TSL Distribution LLC, and Urban Pharms LLC.

The SEC alleges in the complaint that the defendants raised more than $30 million from more than 100 investors and enriched themselves by funneling the money into their personal accounts and spending tens of thousands of dollars on executives’ personal expenses.  

The SEC claims Lee, Pallas, and Rice, since at least mid-2016, made false and misleading statements to investors about various aspects of APB, including its financial condition, the scope of its operations, the value of its Oregon cannabis farm, and the safety and security of investing in the company. 

In a statement, Carolyn M. Welshhans, associate director of the SEC’s Enforcement Division, said “American Patriot Brands Inc. and some of its senior executives fabricated business profits and prospects to entice investors with falsehoods that in the end left investors with essentially worthless securities.”  

The complaint charges APB, Lee, Pallas, Rice, DJ&S Property #1 LLC, TSL Distribution LLC, and Urban Pharms LLC with violating the antifraud provisions of the federal securities laws. The lawsuit seeks permanent injunctive relief, disgorgement with prejudgment interest, civil penalties, and officer and director bars against Lee, Pallas, and Rice.

The complaint names as relief defendants, and seeks disgorgement with prejudgment interest from, three affiliated entities – Legion Accounting Services, Inc., Puerto Rico One Corp., and Castro Business Enterprises LLC – that allegedly received millions in investor proceeds. 

The complaint was filed in the United States District Court for the District of Puerto Rico.  

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Kentucky Senate Passes Medical Cannabis Bill

3/17/2023

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The Kentucky Senate on Thursday passed a medical cannabis bill on a 26-11 vote, WYMT reports. The legislation moves next to the House, which has passed medical cannabis reforms in previous sessions but they ultimately died in the Senate.  

The measure would not allow patients to access smokable products but permits edibles and concentrates. If approved by the Senate and signed into law by Gov. Andy Beshear (D), the bill would take effect on January 1.  

Beshear, who made medical cannabis legalization a legislative priority, is expected to sign the measure if it reaches his desk. Last year, via executive order, the governor legalized the possession of cannabis by some individuals suffering from severe medical conditions. Those reforms took effect on January 1, allowing individuals with a medical provider’s statement to possess up to eight ounces of cannabis for medical purposes if purchased legally in another state.    

The bill passed the Senate Licensing and Occupations Committee on Tuesday. The committee added one amendment to the bill, allowing employers to “conduct assessments of impairment of an employee” with a medical cannabis card.  

The House is expected to consider the measure later this month when lawmakers reconvene for the final two days of this year’s legislative session.  

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New York Sued Over Social Equity Cannabis Retail Licensing Plan

3/17/2023

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A group that includes some of New York’s medical cannabis companies is suing the state over its plan to issue adult-use retail cannabis licenses to social equity applicants before opening applications to all businesses, Syracuse.com reports. The complaint alleges unconstitutional overreach and policymaking, egregious abdication of duties, and actions that put citizens’ health and safety at risk. 

The lawsuit was filed by the Coalition for Access to Regulated & Safe Cannabis which describes itself as “an unincorporated trade association.” The group includes Acreage Holdings, PharmaCann, Green Thumb Industries, and Curaleaf – all of which hold medical cannabis licenses in the state but are not permitted, yet, to apply for retail licenses as the state has so far only allowed what it considers social equity applicants to seek those licenses.  

The group also includes two hopeful dispensary owners and a medical cannabis practitioner in Westchester.      

The complaint argues that the state’s legalization law required the Office of Cannabis Management (OCM) and Cannabis Control Board (CCB) to open “the initial adult-use retail dispensary license application period … for all applicants at the same time” and that the agencies created the Conditional Adult-Use Retail Dispensary (CAURD) program, which introduced a new license class separate from what legislators outlined in the legalization law and then only allowed license opportunities to a specific group. 

The lawsuit claims the agencies “improperly assumed the role of the Legislature to impose their own policies over those of New York’s elected officials and, by extension, their constituents.” 

Earlier this month, New York regulators doubled the number of available adult-use retail licenses in the state from 150 to 300. However, a report issued last month by by MPG Consulting concluded that if the state does not get retail cannabis businesses licensed soon, it could cost the state $2.6 billion in related tax revenues over eight years. The report was prepared by the firm for Acreage Holdings. 

The lawsuit is filed in Albany County Supreme Court.  

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Report: New York’s Slow Licensing Process Could Cost State $2.6B Over 8 Years

3/16/2023

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A report authored last month by MPG Consulting suggests that if New York state does not get cannabis businesses licensed soon, it could cost the state $2.6 billion in related tax revenues over eight years. The report was prepared by the firm for multistate cannabis operator Acreage Holdings. 

So far, New York has just 36 dispensaries projected to open this year and has so far issued more than 280 conditional cultivation licenses to existing hemp businesses in the state. 

“New York is unnecessarily creating a retail bottleneck,” the report says, “slowing illicit market absorption.” 

The report suggests that the slow rollout of legal cannabusinesses in the state will lead to unlicensed market operators capturing $7.2 billion in revenue between 2023 and 2030 and cost 20,600 direct cannabis and ancillary jobs per year. 

“Licensing is increasingly becoming a chokepoint,” the report says, noting that “building and operating compliant retail and cultivation operations takes time, money, and experience.”  

MPG says that compliant businesses need $1 million to $5 million in initial capital including property acquisition, facility improvements, operating procedure development, and initial inventory sourcing. Businesses also require nine months to a year for dispensary entitlements, inspections, permitting, and hiring. 

The report suggests that “there needs to be 900 retail outlets across the state to provide sufficient market access” and that compliant cultivation facilities with between 20,000 to 50,000 square feet of canopy require $5 million to $20 million in initial capital. Additionally, it would take cultivation businesses 18 months to two years from facility development to first finished product, according to the report. 

“MPG estimates indicate 6 million sq. ft. of canopy needed to meet demand. The state has committed $50 million towards industry infrastructure development, with an unfunded objective of raising an additional $150 million from investors. That may be enough for just 20 dispensaries.” — MPG Consulting, “New York Illicit Cannabis Market Absorption Analysis,” Feb. 12, 2023 

The report suggests that if current registered medical cannabis operators in the state are allowed to convert to adult-use sales, illicit sales will be absorbed fastest. In that scenario, from 2023-2030, regulated sales would comprise $35.4 billion of the state market, with illicit sales comprising $9.9 billion of the market. The analysis suggests another scenario would be to phase in registered operators, which would lead to a $30.3 billion regulated market and a $15 billion unregulated market. Were the state to exclude registered operators entirely, illicit sales would comprise $17.1 billion of the market, while regulated sales would comprise $28.2 billion.

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Texas House Committee Considers Raising THC Limits for Medical Cannabis Products

3/16/2023

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The Texas House Public Health Committee on Monday heard hearings on a bill that would expand the state’s medical cannabis program, FOX 44 reports. The measure would allow access to products with THC levels as high as 5%. Under current law, patients can only access low-THC products with THC concentrations up to 1%. 

The measure is, in part, meant to reign in the proliferation of hemp-derived THC products, such as delta-8, which some medical cannabis consumers are relying on because of the low THC limits in the state’s medical cannabis program. Delta-8 THC products are unregulated in the state, while delta-9 products are on the state’s controlled substance schedule. 

David Urbanowicz, vice president of external affairs for seed-to-sale tracking company Metrc, told FOX 44 that “there’s no safeguard in place” for delta-8 products.  

“What we’re talking about with the medical program is Delta-9, and that is all very heavily regulated. Typically, states will require third party tests. It has to pass those tests in order to wait for it to reach the consumer. So again, that is much, much safer, much more well regulated typically.” — Urbanowicz to FOX 44 

The bill was left pending in the committee on Monday. The bill has an identical companion in the Senate; however, that measure has not been sent to any of the chamber’s committees. 

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Minnesota Lawmakers Consider & Adjust Adult-Use Cannabis Proposals

3/16/2023

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House and Senate committees in Minnesota on Tuesday each altered adult-use cannabis legalization bills being considered by lawmakers, with the House Transportation Finance Committee tacking on an amendment to reduce the amount of cannabis individuals can keep in their homes from 5 pounds to 1.5 pounds, ABC 6 News reports. 

The Senate State and Local Government committee adopted a 142-page amendment to create distinctions between the industrial hemp industry and the adult-use cannabis industry.  

Ted Galaty, a hemp farmer and owner of Willow’s Keep Farm, told Senate lawmakers during the hearing that hemp farmers would “suffer” if lawmakers “ram” the bill through without creating separate rules for hemp and adult-use cannabis. 

State Rep. Zack Stephenson (D), the bill author, told the House committee that he would accept their amendment to reduce the amount of cannabis adults can have at home when it reaches the Commerce Committee and would encourage his colleagues to also accept the changes.   

The measure still has several committee stops before making it to the floor of either chamber for a vote.  

During the midterm elections, Democrats took control over both chambers of the state legislature and Stephenson has blamed Republicans for blocking the reforms in previous sessions. Gov. Tim Walz (D) said in January that he was “ready” to sign an adult-use cannabis bill into law.  

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UN Drug Board Criticizes Nations for Cannabis Legalization

3/15/2023

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In its 2022 Annual Report, the United Nations’ International Narcotics Board (INCB) criticized global cannabis legalization reforms, saying legalization “is leading to higher consumption, negative health effects and psychotic disorders.” 

The report claims that cannabis legalization leads to higher use rates among teens and young adults and that “general availability of legalized cannabis products lowers the perception of risk and of the negative consequences involved in using them.” 

“The expanding cannabis industry is marketing cannabis-related products to appeal to young people,” INCB President Jagjit Pavadia said in a statement, “and this is a major cause for concern as is the way the harms associated with using high-potency cannabis products are being played down.” 

The INCB also claims that in all jurisdictions where cannabis has been legalized, cannabis-related health problems have increased. The report suggests that between 2000 and 2018, global medical admissions related to cannabis dependence and withdrawal increased eight-fold while admissions for cannabis-related psychotic disorders have quadrupled worldwide. 

The body further claims that governments’ objectives in legalizing cannabis – to reduce criminal activities and increase public health and safety – have not been achieved, suggesting that in Canada, 40% of the market is illegal cannabis, 50% in Uruguay, and 75% in California.  

The board notes that adult-use cannabis legalization violates drug conventions and suggests those conventions “offer significant flexibility” for “governments looking for alternative solutions regarding cannabis offenses.”  

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Michigan Cannabis Flower Price Drops to $80 Per Ounce

3/15/2023

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Cannabis flower prices per ounce have fallen in Michigan from $152 in January 2022 to $80 in January 2023, WOOD-TV reports. Benham Wrigley Jr., an attorney with CannaLex law, attributed the price decline to “oversupply.” 

“You might go to the state of Illinois and only find 12 growers, here you can have as many growers as municipalities will allow.” — Wrigley to WOOD TV 

According to a Crain’s Detroit Business report, there are five Michigan cannabis companies that have been placed under receiverships in the state. A receivership is a court-appointed tool that can assist creditors in recovering funds in default and can help troubled companies avoid bankruptcy.  

SKYMINT, which has 24 dispensaries in Michigan and has entered into a receivership, said in a statement it was forced to do so because the company was facing many challenges in the state, “including excess supply, decreasing prices, limited access to capital and the increasing cost of capital.” 

Wrigley said he expects cannabis prices in the state to level out as stores inevitably go out of business and growers produce less.     

According to the Michigan Department of Treasury, adult-use cannabis sales in Michigan topped $1.8 billion during the 2022 fiscal year. There are 574 adult-use licensees throughout the state.  

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Kentucky Senate Committee Approves Medical Cannabis Bill

3/15/2023

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The medical cannabis legalization bill in Kentucky passed through the Senate Licensing and Occupations Committee on Tuesday and will advance next to the full chamber, WKMS reports. The committee added just one amendment to the measure, allowing employers to “conduct assessments of impairment of an employee” with a medical cannabis card. 

The measure would not allow patients to access smokable products but permits edible and concentrates. If approved by both legislative chambers, the bill would take effect on January 1, 2025. 

Senate Majority Floor leader Damon Thayer (R), a longtime opponent of medical cannabis legalization in the state, voted in favor of the measure, but described the move as a “tough vote.” He added that he was unsure if the legislation had enough votes to pass the full chamber. 

“I’m very concerned about the lack of science. But this was not a recreational bill. I’m just trying to show a little empathy and sympathy in my old age.” — Thayer via WKMS 

Senate President Robert Stivers (R) has also opposed medical cannabis legalization; however, he indicated earlier this year he would support medical cannabis use in end-of-life circumstances, the report says.

Medical cannabis legalization has been a legislative priority for Democratic Gov. Andy Beshear, who last year, via executive order, legalized the possession of cannabis by some individuals suffering from severe medical conditions. Those reforms took effect on January 1 and allow patients with a medical provider’s statement to possess up to eight ounces of cannabis for medical purposes if purchased legally in another state. Kentucky borders three states with medical cannabis programs – Illinois, Ohio, and West Virginia – but neither Ohio nor West Virginia allow medical cannabis access to non-residents.   

Medical cannabis legalization passed the House in both 2020 and 2022 but died in the Senate. Both chambers must approve the bill before the state session ends at the end of the month. 

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Comparing Pre-Roll Filling Machines

3/15/2023

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Pre-rolls are the fastest-growing products in the cannabis market, but they weren’t always such a popular choice. Early on, pre-rolls had a reputation for being low-quality products, and it was a well-earned reputation. It’s hard to replicate and scale the care that goes into making a quality joint, so pre-rolls quickly became a place for flower producers to dump their shake and trim.

One of the biggest reasons pre-rolls have seen such incredible growth is because of advancements in pre-roll production machinery. Not only have these machines sped up the process of making pre-rolls, but they have also allowed producers to increase the quality of their pre-rolls. Consumers now have access to better pre-rolls at a better price point. It’s easy to see why pre-rolls are the fastest-growing product in the cannabis industry!

What Pre-Rolls Are You Making?

There’s a lot to consider when launching a new pre-roll line, and the machine you choose is right up there as one of the most important decisions you’ll make. The perfect machine for your pre-roll project isn’t going to be for everyone. You need a machine that is going to meet your specific needs.

The first thing to consider is what kind of pre-roll you want to make. Are you planning on making an entire line of pre-rolls that will come in a variety of sizes, or is your plan to focus on producing one size? Some machines are better at making one type of pre-roll whereas other machines are more versatile for making multiple sizes.

One of the most versatile machines on the market is the King Kone. Right out of the box, you are going to have the ability to make full-gram, half-gram, and quarter-gram pre-rolls, and, with an attachment, you can even make tube-style pre-rolls. The Futurola Knockbox machines are similar in their ability to create multiple types of pre-rolls out of the box. The biggest difference between the King Kone and the Knockbox being that the holes in the King Kone cartridges are tapered to fully cradle the cones. This means more flower ends up in the cone. Additionally, the filling cartridge in the Knockbox is made of glass and tends to break easily, compared to the durable polycarbonate plastic trays in the King Kone.

The Fill and Fold Machine isn’t as versatile out of the box, as it only comes with one cartridge size (different sizes can be purchased separately); however, if you are only planning on making one size of pre-rolls, The Fill and Fold is going to be your best option. All the machines are similar in how they fill empty cones, but the Fill and Fold machine’s tamping tool will also close the pre-rolls. In other words, instead of spending the time folding and closing each pre-roll individually, you can close entire rows at a time before you eject them out of the machine.

How Many Pre-Rolls Do You Need to Produce?

You may think the more cones a machine can hold, the faster you are going to be able to produce pre-rolls, but this is not always the case. You have to take into consideration the entire production line. For example, if you can only finish 600 pre-rolls an hour, it doesn’t matter that you can fill 10,000 in the same amount of time. You will only be as fast as the slowest point of your production line.

So, instead of buying the biggest machine, it is often better to buy extra cartridges and/or multiple smaller machines. Extra cartridges have the benefit of not overwhelming the production line, and multiple machines means that your production won’t stop if one machine needs maintenance or cleaning.

There does come a point where it makes sense to invest in a bigger machine. If you find yourself needing to produce more than 50,000 pre-rolls a month, it starts to make financial sense to bring in an automated pre-roll machine. You can automate everything on the production line, and, since these machines are modular in design, you can expand your automation capacities from one machine to many over time.

Pre-Roll Machine Functionality

A pre-roll needs to be packed well if it is going to burn properly. If it is packed too loose, then it burns fast and harsh. If it is packed too tight, you get weak pulls, and it won’t stay lit. Most pre-roll filling machines use vibration to pack the pre-rolls—the more premium models offering a more powerful motor to ensure a solid pack.
The King Kone distinguishes itself by having a motor that moves the platform underneath the pre-rolls up and down to simulate a packing motion. The King Kone also distinguishes itself from other models by having a tray that catches the flower that bounces out during packing. What this means is that you will spend less time cleaning up your production line and lose less cannabis material in the process.

On the other hand, both the Fill & Fold and Knockbox use vibration to fill and pack the cones. The vibration on the Fill & Fold is very strong and creates a nice, dense pack. The vibrating motor on the Fill & Fold is so strong, you can actually bounce the cones out of the machine, so you are instructed not to turn it all the way up! The Knockbox uses a subwoofer type system to bounce the platform, which is rather weak and may lead to soft spots and floppy ends near the filter tips.

A feature that you can expect to find on all premium models (King Kone, Futurola, Fill and Fold) is the ability to control the speed at which the machine packs. This will allow you to adjust how hard your machine packs based on the flower you are using. For example, if you have some flower that is extra sticky, you can easily increase the packing power to make sure your pre-rolls burn appropriately. The King Kone and Fill & Fold have a variable dial, whereas the Knockbox has 3 speed settings.

Pre-Roll Machine Add-Ons

A pre-roll filling machine with great add-ons will not only increase your ability to produce different types of pre-rolls, but they will also increase your efficiency. For example, a metering tray is an add-on that will help you be more precise with your filling. This cuts down on waste and saves time in the finishing process, as you will have fewer mistakes when verifying the weight of the pre-rolls before they get packaged for sale.

Tampering tools are also a great add-on that will ensure a solid smoking experience of your pre-roll. Fill and Fold machines stand out in this section, as they come with a tamping tool that will not only tamper the pre-rolls, but it will also close the pre-rolls — saving you time further down the production line. A tamping tool can be purchased separately for the King Kone machine, which is placed on top of the machine while packaging and helps tamp down the tops of all the pre-rolls.

The King Kone stands apart from other machines for its ability to create multiple-sized cones right out of the box. All other machines require additional cartridges (sold separately) to make different types of cones. Only the King Kone and Futurola machines can make pre-rolled tubes, but both require a separate cartridge that is purchased separately.

Pre-Roll Machine Durability

Before you pick a machine, consider the quality of the model, how long you plan on using it, and if you are planning on scaling up with that machine. You don’t want to be in a position where you have to invest in completely different machines down the line because you didn’t invest in the right one up front.

Made from stainless steel and polycarbonate, you can’t go wrong with the King Kone. As well as being the most versatile, it is also the most durable! The Fill and Fold is also quite sturdy, as it is made from a high-density food grade plastic. The Futurola and Fast Fill models are made from plastic and are less durable. Each model comes with a limited manufacturer’s warranty.

Price of the Pre-Roll Machines

The price of a pre-roll filling machine is going to be anywhere between $450 for a non-electronic cone filling machine and $250,000+ for an automated pre-roll machine. That’s a huge range, so your decision is going to be dependent on what types of pre-rolls you are making and the scale of your production; however, regardless of the specifics of your pre-roll project and the machine you decide to use, it’s better to invest in multiple small machines before you invest in one large machine.

This ensures that production will not stop if one machine goes down for maintenance or cleaning, but it also gives you the ability to make different types of pre-rolls simultaneously. Each machine is limited to making one type of pre-roll at a time. If you want to make a different type, you have to stop production and reconfigure the machine. This can be a long process that can eat into your production margins.

The big takeaway here is that you have to consider the price of the machine as well as the price of production. Some machines will cost more upfront, but they save you money by speeding things up. The right machine for you is going to keep your entire production line streamlined.

Manual Cone Filling Machines vs Automation

If you plan on making more than 50,000 pre-rolls a month, you should start considering automated machinery for pre-roll production. Whereas nothing will come close to the number of pre-rolls they produce, there are other limitations associated with these machines.

Firstly, for the machine to run smoothly, you need to prepare the flower in a certain way. Whereas other machines can use the stickiest bud and a range of grind sizes, an automated machine needs the flower to be less sticky and have a consistent, finer grind. Sticky buds can easily gunk up these machines. This can cause unscheduled delays in production. An even grind also ensures that pre-rolls can be finished consistently.

Because of the demands on the flower, it almost becomes necessary to invest in an Industrial Grinder and Sifter — another upfront cost that is not included with the filling machine. Of course, many people have one of these grinders and sifters before they invest in an automated pre-roll filling machine, as they are very useful for optimizing production regardless of the machine being used.

Another downside to automated machinery is that there is a long downtime associated with adjusting the machine and/or cleaning it. So, if you wanted to make different types of pre-rolls and only have one machine, you will waste a lot of time getting the machine ready for each type. Also, most automated machines limit you to a standard empty cone. You won’t be able to use blunt wraps or cones with premium filter tips (glass, ceramic, etc).

Lastly, you don’t want just anyone running your automated machinery. Whereas the other models can be learned quickly and can be picked up by a new hire, the automated machinery requires someone with training and, if possible, experience. This means you’ll be paying this person more. This cannot be a high-turnover position.

Customer Service

Every pre-roll project is unique, so there isn’t a one-size-fits-all answer for picking the right pre-roll filling machine. The right machine for you is going to depend on your current production goals as well as how you see those goals expanding in the future.

As a provider of custom pre-roll equipment and supplies, we at Custom Cones USA have hands-on experience with every aspect of the pre-roll industry. If you have questions about pre-roll production or need help finding the best equipment, the Pre-Roll Experts at Custom Cones USA have the answers you need to bring your pre-roll project to life!

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