President Biden Pardons Federal Cannabis Offenses

10/06/2022

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President Joe Biden (D) on Thursday pardoned all federal cannabis possession convictions and said his administration would take steps to consider rescheduling cannabis under federal law, according to a White House press release.

“As I’ve said before, no one should be in jail just for using or possessing marijuana,” the president said on Twitter on Thursday. “Today, I’m taking steps to end our failed approach.”

In a statement posted online, Biden said his Secretary of Health and Human Services and the U.S. Attorney General would “initiative the administrative process to review expeditiously how marijuana is scheduled under federal law.”

“Federal law currently classifies marijuana in Schedule I of the Controlled Substances Act, the classification meant for the most dangerous substances. This is the same schedule as for heroin and LSD, and even higher than the classification of fentanyl and methamphetamine – the drugs that are driving our overdose epidemic.” — President Biden, in a statement

He also said governors around the U.S. should take similar steps to pardon cannabis offenses at the state level but that “important limitations on trafficking, marketing, and under-age sales should stay in place.”

Biden campaigned for office on a promise of relief for individuals convicted or incarcerated for using cannabis but after nearly two years of no visible effort, voters and advocates had grown vocal about the president’s apparent inaction. NORML’s Executive Director Erik Altieri said in a statement that while the action was “long overdue,” the cannabis advocacy group was “pleased” to see the president follow through on his campaign promise and called for swift collaboration to “repeal America’s failed marijuana criminalization laws.”

“Congress should be inspired by the Administration’s actions today to act quickly and send legislation to the President’s desk that would help close this dark chapter of our history,” Altieri said.

“We are thrilled that President Biden has taken this initial action to pardon thousands of individuals suffering the collateral consequences of a cannabis conviction,” said Sarah Gersten, Executive Director for Last Prisoner Project. “While we will continue to call on his administration to release those still incarcerated in federal prison for cannabis offenses other than simple possession, these grants are an important first step in acknowledging the need to repair the harms of prohibition. We look forward to continuing to work with the Biden administration on broader clemency grants, the release of every federal cannabis prisoner and the federal legalization of cannabis.”

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Eteros Wins Court Case Over the Import & Export of ‘Marijuana-Related Drug Paraphernalia’

10/06/2022

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Las Vegas, NV, September 21, 2022 — Eteros Technologies USA, Inc., the industry leader in post-harvest cannabis automation equipment, announced the success of its court case regarding the authorization exemption of 21 U.S.C. Section 863(f)(1) of the Controlled Substances Act (CSA). This was a case of first impression never before decided by a Federal or State court. It sets an important precedent for international trade in cannabis paraphernalia, recognizing that States’ authorization of persons to manufacture, distribute or possess cannabis paraphernalia triggers the “authorization exemption” which allows the importation of such products into the United States. The decision effectively instructs U.S. Customs and Border Protection (CBP) to permit the importation of cannabis paraphernalia into states that have legalized the manufacture, distribution, and possession of such items. With the cannabis market estimated at $38.8B in 2023 and multi-state operators’ capital expenditures representing up to 30% of revenue, this decision could impact billions of dollars of cannabis equipment imports annually.

Eteros traces its roots back to Surrey, British Columbia when in 2016, founder Aaron McKellar and a core group of engineers from diverse backgrounds and a passion for innovation and “divergent thinking” began manufacturing equipment for Canada’s newly legalized cannabis industry. In 2019, Eteros, the parent company of the Mobius and Triminator brands, expanded sales from Canada into the US to help support farmers growing now federal-legal hemp and the growing market of state-legal cannabis.

In April 2021, Eteros attempted to import sub-assembly components used to manufacture the Mobius M108S cannabis trimming machine into the Port of Blaine, Washington. On inspection, CBP deemed the parts prohibited “drug paraphernalia,” citing the Federal Controlled Substances Act. Eteros engaged counsel who challenged CBP’s determination by arguing that Washington State’s legalization of cannabis and related paraphernalia triggers the authorization exemption, serving to exclude importations of cannabis paraphernalia from the federal prohibition. The federal authorization exemption states that Section 863 shall not apply to “any person authorized by local, State, or Federal law to manufacture, possess, or distribute such items[.]” CBP ultimately disagreed with Eteros’ legal arguments and Eteros filed an action in the U.S. Court of International Trade to get a definitive court ruling on the meaning of the authorization exemption of Section 863(f)(1).
After months of litigation, CIT Judge Gary S. Katzmann ruled in favor of Eteros, confirming that state law authorizing the manufacture, possession, and distribution of cannabis harvesting equipment (and other cannabis-related paraphernalia) exempts Eteros from the prohibition against importing such merchandise into the United States, at least insofar as the goods are imported into a State like Washington which authorizes manufacture, possession, and distribution of cannabis-related paraphernalia.

“The Court’s decision today is a huge win for the cannabis industry. States’ authorization of persons to manufacture, possess, and/or distribute marijuana-related drug paraphernalia serves to trigger the federal authorization exemption, therefore exempting cannabis-related paraphernalia from the import prohibitions which prevent the importation of all other forms of drug paraphernalia,” said Eteros Technologies’ legal counsel, Richard O’Neill, of Neville Peterson LLP.

“NCIA commends Eteros for challenging the Customs and Border Patrol on this important issue and bringing about this win for the legal cannabis industry. Legitimate businesses all over the world are serving the legal cannabis industry, which generates hundreds of thousands of U.S. jobs. Hopefully, this decision will ensure that these law-abiding businesses will no longer face unfair impediments to importation or exportation of legal products across our borders”, said Aaron Smith, Co-founder, and CEO of The National Cannabis Industry Association.

The ruling comes during a pivotal time in the agricultural evolution of the cannabis industry. Cannabis cultivators are increasingly automating their post-harvest workflow and rely on equipment from innovators like Mobius and Triminator to keep pace with ever-evolving cannabis markets.

For more information, contact Eteros at info@eteros.com.

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Poll Finds 74% Support for Cannabis Legalization in Maryland

10/06/2022

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A new poll from the Washington Post and the University of Maryland found supermajority support among Maryland voters for adult-use cannabis reforms. The poll found that 74% of voters said they plan to back the reforms at the ballot box in November, with 23% opposed and 4% unsure. 

A Goucher College poll conducted last month found 59% support for the reforms, with 34% opposed and 7% undecided.  

The legalization question is set for a statewide voter after state lawmakers passed House Bill 1 in April, which created the Constitutional Amendment that voters will consider. If approved, the amendment would legalize adult-use cannabis starting July 1, 2023, with a transitional period from January 1 to July 1 where possession of up to 1.5 ounces of cannabis would be considered a fineable offense. 

Lawmakers also approved companion legislation which would begin implementing the program following the measure’s passage. That bill also includes automatic expungement of any previous simple cannabis possession charges, resentencing for anyone currently held in a jail or state prison on a cannabis-related conviction, and would establish a study to investigate potential public health concerns including patterns of use and impaired driving. The bill also contains social equity provisions. 

The question posed by the Washington Post/University of Maryland poll mirrored the question that will appear on November ballots in Maryland: “Do you favor the legalization of the use of cannabis by an individual who is at least 21 years of age on or after July 1, 2023, in the state of Maryland?” 

The poll found that 87% of voters under 40 years old backed the reforms. 

Michael Hanmer, the director of the University of Maryland’s Center for Democracy and Civic Engagement, which co-sponsored the poll, told the Post that what stood out to him was “the high level of support and the diversity of support.” 

“Whether you look across party, region, almost every characteristic, you see majorities supporting this,” he said. “That’s been the trend across the country. People have really shifted their views across time on this issue, all pointing in the direction of being more supportive.” 

If Maryland voters approve the question, the state will be the 20th to legalize cannabis for adults.  

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Authorities Investigating Details Surrounding the Death of Lorna McMurrey

10/06/2022

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Massachusetts authorities are investigating the death of Lorna McMurrey, the employee who died in January at a Trulieve Holdings LLC facility in Holyoke, Western Mass News reports. The investigation is not criminal in nature but Holyoke Fire Department Capt. David Rex told Western Mass News that the medical examiner and police are focused on the call made to the fire department on January 7 around 11 p.m.    

The federal Occupational Safety and Health Administration (OSHA) concluded in its report that McMurrey, 27, died from inhaling “ground cannabis dust.” 

“Filling pre-rolls She (sic) said she couldn’t breathe. Not being able to breathe Marijuana kief (dust) At 11:00 p.m. on January 7, 2022, an employee was grinding cannabis flowers, and packaging ground cannabis in pre-rolls. The employee could not breathe and was killed, due to the hazards of ground cannabis dust.” — OSHA in the January 7 report   

OSHA filed three citations, including more than $35,000 in fines, against Trulieve related to a lack of appropriate training and available safety information for hazardous chemicals. Trulieve is contesting the fines. 

There is no exposure limit in place per OSHA for exposure to “ground cannabis dust.”

In a statement to Western Mass News, Trulieve said, “Our hearts go out to Ms. McMurrey’s family, friends, and colleagues as the circumstances around her passing have recently resurfaced, resulting in their having to re-experience their loss.” 

McMurrey’s death was first reported by The Young Jurks podcast.   

“Out of respect for the family’s privacy, we are not going to provide any details as to the specifics of that day. However, OSHA conducted a thorough investigation of the Holyoke facility. [Personal Protective Equipment] was available onsite,” the spokesperson told Western Mass News. “They tested the air quality throughout the facility and the samples were all well below acceptable ranges. OSHA did issue citations related to communication standards and Trulieve has contested those findings. We cherish and value all of the 9,000 employees who make Trulieve a family and the safety of our team members is paramount to our core values.” 

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Kansas Lawmakers to Review Medical Cannabis Legalization

10/06/2022

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Kansas lawmakers will meet twice this month to review medical cannabis legislation ahead of next year’s legislative session, KSNT reports. The Special Committee on Medical Marijuana will meet on October 12 and October 19 to go over the bill’s details and to hear testimony from law enforcement, state agencies, local government representatives, and the public. 

Law enforcement, state agencies, and local government representatives will provide testimony on October 12, while the public will provide testimony on October 19, the report says.

State lawmakers failed to pass the reforms last session but state Sen. Rob Olson (R) said he expected medical cannabis would be “in full effect in the next few years.”

The House passed a version of the bill in 2021 but it stalled in the Senate. The chambers had convened a conference committee last May to work on the bill but negotiators were unable to finish the legislation before the Legislature adjourned.

Under the legislation drafted by the committee, medical cannabis would have been available to patients suffering from one of more than 20 qualifying conditions and allowed to obtain a 30-day supply with a purchase limit of three ounces for flower products, which would be capped at 35% THC. Physician recommendations would be valid for 90 days, after which they would have required renewal for another 90 days.

Last month, the Wichita City Council voted 5-4 to decriminalize cannabis in the city, the report says.

Spencer Duncan, deputy mayor of Topeka and City Council member, told KSNT that the capital city may also consider decriminalization reforms but not until 2023. He said city officials were waiting to see how decriminalization played out in Wichita, Kansas.

“It’s okay to use other cities as Guinea Pigs for lack of a better word, and see… did your program work, and where didn’t it work, and then take the things that work from those ideas,” he said.

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High-Precision Check Weigher Receives NTEP Certification

10/05/2022

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Achievement marks the first weighing system certification specific to the cannabis industry

October 4, 2022 – Canapa by Paxiom is proud to announce that its Pre-CheQ Analyzer from WeighPack Systems has been awarded the NTEP Certificate of Conformance from the National Conference on Weights and Measures.

After rigorous, repetitive testing of the Pre-CheQ and its electro-magnetic force restoration (EMFR) weigh cell technology, the NCWM issued this prestigious certificate within their Accuracy Class II, used for laboratory weighing of products ranging from cannabis to precious metals.

Engineered to accurately weigh product to 0.001g, the Pre-CheQ weighs product after the weigh filling stage to ensure weight accuracy just prior to product packaging. If the products falls above or below the target weight, it is sent to an accumulation bin for reuse. This type of precise measurement closer to the final container is preferred over other systems that use less accurate strain gauge load cells to weigh individual weigh buckets prior to product dispensing.

Designed to check weigh products directly above the package prior to filling, the Pre-CheQ Analyzer, and its ultra-precise EMFR weigh cell technology, is perfectly suited to weigh cannabis flower, gummies, capsules and other products with seamless integration into bagging and container filling systems.

This compact, modular check weigher also features stainless-steel frame construction, toolless removable re-accumulation and real-time reporting with data export to both USB and seed-to-sale software.

To receive more information on this industry-leading technology, visit https://www.canapasolutions.com/cannabis-packaging-machine-inquiry/.

About Canapa
Canapa is a global leader in the design, manufacture and integration of automated cannabis packaging machines for the legal cannabis and hemp industries. From weighing, pre-roll filling, jar and pouch filling, bagging and wrapping to conveying, cartoning, case packing and palletizing, Canapa packaging solutions can be tailored to meet specific production, space and budgetary needs.

Contact: David Morgan, Director of Marketing, dwmorgan@canapasolutions.com, 702-450-0808 x625

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Nevada Sees Nearly $1B In Annual Cannabis Sales

10/05/2022

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Nevada cannabis sales reached nearly $1 billion during the fiscal year 2022 — July 1, 2021, to June 30, 2022 — the Nevada Independent reports. The $965 million in taxable sales is a 4% year-over-year decrease, however.

Reasons for the drop in sales may include the expiration of COVID-19 restrictions and other economic factors like inflation, the report says. 

“Over the first part of the year, Nevada’s cannabis industry saw lower retail sales, a trend consistent with other mature cannabis marketplaces nationwide,” Nevada Cannabis Compliance Board spokesperson Tiana Bohner said in an email to the Independent. “While sales increased during the COVID-19 pandemic, cannabis businesses are not immune to the effects of inflation and lack of disposable income as consumers adjust their spending habits and priorities.”

Much of the tax revenue, $147 million in total, will go to K-12 education. The state imposes a 10% excise tax, which totaled $89 million, and a 15% wholesale excise tax, which totaled $63 million, the report says. Two other funds benefit from cannabis sales — $5 million to local governments and the remainder will go to funding state regulatory duties like the compliance board.

Despite the high sales figures, some cannabis businesses and activists have expressed concerns about large fees and the state’s wholesale taxation formulas, the Independent says.

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FDA Hires Former New York & Rhode Island Cannabis Regulator as Senior Policy Advisor

10/05/2022

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The Food and Drug Administration (FDA) last week hired Norman Birenbaum to serve as its first senior policy advisor on cannabis, LA Weekly reports. Birenbaum most recently served as director of cannabis programs for New York State. Prior to that role, he served as Rhode Island’s top cannabis regulator. 

Birenbaum was also one of the founding members of the Cannabis Regulators Association, which was formed to link regulators across states to collaborate on industry policies and best practices.

NORML Political Director Morgan Fox told LA Weekly that given the FDA’s “ineffective approach” to cannabis policy over the years “it is good to see them being more proactive and bringing on people with actual cannabis experience.” 

“The FDA’s work related to cannabis is likely going to increase and become more complicated in the not-too-distant future, and it should be preparing for this now by continuing to bring on additional staff with a wide array of expertise in the space.” — Fox to L.A. Weekly 

Aaron Smith, founder of the National Cannabis Industry Association. Told L.A. Weekly that the organization is “hopeful that Mr. Birenbaum’s background in cannabis regulations will bring to the FDA the experience and understanding of the nuances they will need to effectively regulate the vastly diverse array of cannabinoid products, including CBD products an increasing number of Americans are relying on for pain relief and other benefits.” 

In his FDA role, Birenbaum will be working with the Center for Regulatory Programs to advise on projects involving cannabis research and the regulation of cannabis products. In New York, Birenbaum helped oversee the implementation of rules that allowed CBD and other hemp-derived cannabinoid products to be sold as food, beverage, and dietary supplements. 

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DEA Pharmaceutical Cannabis License Holder Raises $20M

10/05/2022

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Biopharmaceutical Research Company (BRC), which holds an active Drug Enforcement Administration (DEA) pharmaceutical cannabis license, on Tuesday announced the completion of a $20 million Series A fundraising round. 

The round is led by Intrinsic Capital Partners, with participation from Argonautic Ventures, Achari Ventures, AFI Capital Partners, Delta Emerald Ventures, Self Health America (SHAC), and a number of family offices, the company said in a press release. 

George Hodgin, BRC CEO, said the “significant new financial infusion will further accelerate” the company’s “ability to grow as a business while establishing BRC as an industry leader.” 

“Receiving our DEA Schedule I registration in 2021 allowed us to significantly advance our research capabilities, optimize our cannabis growing operation, and produce novel cannabis-derived products in a federally compliant manner.” — Hodgin in a statement 

BRC has partnerships with academic research institutions including Washington State University and the University of California-Davis. 

Howard Goodwin M.D., Intrinsic managing partner, said BRC “has exactly the kind of high-growth potential” the firm “looks for in a company.”  

“They’re a mission-driven company with excellent leadership in a high-growth industry,” he said in a statement, “and we’re thrilled to have engaged with a business that is already in a significantly advantageous position given their unique ability to be fully compliant with the DEA.”   

Hodgin said BRC is grateful to the Intrinsic team and its other partners “for seeing the high-growth potential of our work.”  

“Intrinsic not only provides us with the cash we need to scale aggressively,” he said, “they also bring a wealth of experience in the pharmaceutical space.” 

BRC said the funding will enable it to scale its operations, increase its product offerings, conduct sponsored research, and execute its go-to-market strategy. 

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Morocco Issues First Medical Cannabis Cultivation Permits

10/05/2022

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Morocco has issued its first 10 permits for cannabis production after passing a medical cannabis legalization law last year, Reuters reports. A state agency said farmers who organize into cooperatives in the northern mountain areas of Al Houceima, Taounat, and Chefchaouen will be allowed to cultivate cannabis to meet the needs of the newly legal market. 

The bill approved in February 2021 said that Morocco’s illegal cannabis trade was worth about $15 billion – the majority of which ($14.5 billion) goes to drug traffickers rather than farmers ($500 million).  

Morocco had previously allowed cannabis cultivation in some rural areas under a special status but seven years ago reduced the amount of land where the practice was allowed from 134,000 hectares to 47,000 hectares. 

In 2015, the United Nations Office on Drugs and Crime identified Morocco as the world’s largest producer of hashish, and 235 tons of hash were seized in the country that year alone. The report found 80% of the national hash production is destined for export, leaving 20% for the local market. 

The law is intended to improve the incomes of farmers, who had protested over income inequality in recent years, and protect them from drug traffickers who control the cannabis trade and export it illegally to Europe. 

Production under the law can only focus on cannabis for “medical, pharmaceutical and industrial purposes.” 

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Matt Noestheden: Bringing Mass Spectrometry to the Cannabis Industry

10/05/2022

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Testing labs play an essential role in cannabis regulations and consumer safety. These labs utilize mass spectrometers to measure and record the various compounds within any given cannabis product including its various cannabinoids, terpenes, and even potentially harmful microbials, pesticides, and heavy metals — and the mass spectrometers used by labs must be accurate and reliable.

Matt Noestheden is the Market Development Manager for SCIEX, which researches, designs, and manufactures mass spectrometers for research centers worldwide; with a PhD. in Analytical Chemistry, Matt focuses on cannabis, environmental, and food and beverage research projects. This written Q&A covers how SCIEX works to support its cannabis testing lab clients, the steps of getting oneself set up with a mass spectrometer, his thoughts on the state of cannabis science, and more.

Read the full interview below!

Ganjapreneur: In a nutshell, how does SCIEX help cannabis testing labs?

Matt Noestheden: Over the last six years, SCIEX has helped dozens of cannabis and hemp laboratories bring their testing services online, sometimes before their facility build out is even complete. Using the lessons learned from helping these labs, as well our 50-year strong pedigree in supporting our customers conducting similar contaminant testing for food and environmental samples, SCIEX is able to provide technical guidance and information regarding laboratory set-up and operations that is specific to the cannabis industry and the tests they are required to perform.

In developing your approach to help cannabis analysis facilities, what are some of the similarities and differences you’ve encountered, compared with other product testing niches?

The common thread amongst the food, beverage, environmental and cannabis testing spaces is the critical role that regulations play in not only defining the contaminants that require testing, but also supporting consumer safety through codified, rigorous, science-based testing programs.

However, unlike food and environmental legislation, which is frequently set at the federal level, the regulatory requirements regarding testing cannabis are set at the state level and therefore often differ from state-to-state Further complicating things is the fact that hemp (federally legal) and cannabis (federally illegal) testing legislation may differ in their testing requirements. These differences can be a challenge for testing labs that have reached the point of expansion planning as not only may the regulations be different, but the necessary analytical instrumentation needs may differ as well.

Coming from a hard science background, what has been one of the most surprising aspects of your experience with the cannabis industry?

Notwithstanding the challenges of regulatory variation from state-to-state, the most surprising thing for me has been how much we, as a collective scientific community, don’t yet understand about the fundamental science of cannabis. The comprehensive biological impact of CDB and d9-THC (not to mention other cannabinoids) and definitive investigations into their synergy with terpenes, the potential benefits of cannabis flavonoids and, from a testing perspective, the optimal methods to accurately quantitate contaminants in the myriad of commercially available products containing cannabis are all areas ripe for scientific discovery. And I think it also has been really interesting to watch our understanding of vaping science and its relationship with consumer safety evolve in recent years.

What is “mass spectrometry,” and how is it used in cannabis testing? What types of tests can be conducted with this approach?

A mass spectrometer is an analytical instrument that is capable of detecting a particular compound of interest (or hundreds of compounds, depending on your needs) with a very high degree of specificity and sensitivity. Fundamentally, a mass spectrometer measures the mass of a compound to provide that specificity while simultaneously measuring how much of that mass is present. Owing to these capabilities, mass spectrometry is the gold-standard technique for detecting and quantitating pesticides and mycotoxins. These particular contaminants typically have regulatory requirements measured in parts-per-billion – a concentration that can only be achieved with suitable accuracy, specificity and sensitivity using mass spectrometry.

Does a lab technician need training or a specialized degree to functionally operate a mass spectrometer?

The routine operation of a mass spectrometer does not require a specialized degree, provided there is a thorough inhouse training program for technical staff and a strong QA/QC process before data is released. You can also look at purchasing third party training to build staff expertise, but this may become cost-prohibitive depending on employee turnover. If, however, you move beyond routine operation into method development, troubleshooting and QA/QC functions, advanced schooling (e.g., MSc, PhD) and/or at least 3-5 years of direct experience will increase your chance of successful outcomes in these areas.

Are there different types of mass spectrometers available, and if so, how do they differ?

There are two main types of mass spectrometers that a cannabis testing laboratory may consider. The first, and most common in a regulatory testing environment, is a triple quadrupole mass spectrometer. These systems are heavily used for contaminant testing and have a well-deserved reputation for sensitivity and reproducibility. The second type that a cannabis lab might consider is an accurate mass system. These systems can do the same sort of quantitative work as a triple quadrupole, but they are designed to provide additional specificity by very accurately measuring the mass of a specified molecule(s). Because this mass is measured so accurately, accurate mass systems allow users to answer questions about their samples beyond ‘how much of compound X is in here?’. For example, you could use accurate mass systems to aid in the identification of new cannabinoids, or help confirm the identity of a presumptive pesticide finding that is being disputed.

What are some of the most important considerations for a cannabis testing lab when choosing what kind of testing equipment to use?

Any instrument vendor should be able to clearly discuss your testing needs with you and advise on the right type suite of instrumentation for your business needs. However, while testing equipment is an important capital purchase, staffing needs, sample throughput and operational costs should also be built into your ROI models. Consistently generating high quality, defensible results for customers requires highly qualified staff – not just for mass spectrometers, but for all of your analytical testing operations. So working with companies that provide you with clear guidance on not only what instrument(s) you are likely to need, but also can provide resources on your other likely needs is invaluable when setting up a new testing laboratory.

How does a lab need to prepare for the implementation of a new MS instrument in their space?

Aside from having suitable bench space to accommodate the instrument itself, there are power considerations, gas supply needs, laboratory ventilation and temperature control requirements, chemical supplier details and staffing considerations that need to be factored into a successful implementation of mass spectrometry to your testing portfolio. Recognizing that this can be a lot to work through when building out a new facility, SCIEX has developed an implementation guide specifically for cannabis labs that covers these considerations and others to help as you consider starting a cannabis testing laboratory.

Does SCIEX maintain relationships with clients after setup? What kinds of ongoing support, training, and educational resources do you provide?

Absolutely. Installation of the instrument is only the start our relationships we build with customers. To help in their successful implementation of mass spectrometry, SCIEX offers ongoing technical support for our instruments and software, as well as support specific to an application customers are having challenges with. We also understand that one of the big challenges in the laboratory industry is staff retention. To help cannabis customers build their in-house expertise and keep staff engaged and learning, SCIEX has developed a series of free webinars that discuss mass spectrometry in general and also the specifics of cannabis compliance testing. SCIEX is also working closely with several industry partners to advance the science of cannabis testing and feel very strongly that instrument vendors should support basic scientific research whenever possible.

What topics are covered in the educational webinar series, and what other information is available in the SCIEX library? Can anyone access the library?

Our cannabis resource hub includes a four-part webinar series that covers all aspects of chemical testing (i.e., not microbiology) associated with cannabis compliance testing. This includes potency, terpenes, residual solvents, pesticides, mycotoxins and the techniques used in their analysis (sample preparation, HPLC, GC-MS, LC-MS). Also included in the resource hub are documents that outline tips for analysts to avoid common testing challenges and solutions for specific state pesticide lists. The resource hub is frequently updated with new content, all of which is free to access. Our hope is that the cannabis testing industry can leverage these resources in their staff training and development activities.

What would you say is one of the biggest problems with the current state of regulations around cannabis testing in the markets where it’s legal?

The lack of federal oversight for cannabis compliance testing causes a great deal of frustration for testing laboratories. Not only during the initial phases of setting up your laboratory, but also during growth and expansion phases since you are limited to accepting samples from in-state (for cannabis) and expanding to new states requires understanding a new set of regulations.

What is one piece of advice would you give to someone planning to start a cannabis testing laboratory?

Even if your specific regulations do not require it, implementing a robust quality management system that is consistent with ISO 17025 specifications will go a long ways to ensuring you have the many of the necessary checks and balances to consistently produce high quality, accurate data that your customers can stand behind. And not to be too sneaky here by adding in a second piece of advice, but I would also strongly encourage the recruitment of high quality scientists to run your tests and manage your laboratory, as your reputation will depend on the quality of that data they are able to product.

Thanks, Matt, for answering these questions and sharing your expertise! Readers can visit SCIEX.com to learn more.

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Kentucky Medical Cannabis Advisory Committee Finds 98% Support for Reforms

10/04/2022

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In an online poll conducted by Kentucky Gov. Andy Beshear’s (D) Medical Cannabis Advisory Committee, the overwhelming majority of respondents backed medical cannabis reforms. The committee released its full report last week, which showed 98.4% of Kentuckians backed the reforms with just 1.36% opposed.   

The polling coincided with a series of Town Hall meetings by the committee from July 6 through 25.  

“Polling suggests 90% of Kentucky adults support legalizing medical cannabis. Our team traveled the state to talk directly to Kentuckians, and they found our people do indeed overwhelmingly support it. I appreciate the work of those who participated, and I am taking this information into consideration as I analyze what steps I can take to legalize medical cannabis for those suffering from chronic, debilitating medical conditions.” — Beshear in a press release 

In a statement, Kerry Harvey, co-chair of the committee and secretary of the Justice and Public Safety Cabinet, noted the advisory committee did not hear any opposition at their town hall meetings. 

“Everyone who spoke supported legalizing medical cannabis in Kentucky,” Harvey said in a statement. “We heard from many Kentuckians that use cannabis for its beneficial medical effects but can only do so by breaking the law as it now exists. Many of these Kentuckians must leave the commonwealth to legally obtain medical cannabis in one of the 38 states where it is legal.” 

A military veteran who spoke at the meetings described his daily struggle after being prescribed 13 medications that weren’t effective, which left him contemplating suicide. After turning to cannabis, he said, “Within a year, I didn’t drink and was off 12 of the 13 medications.”  

“I still have all those injuries and disabilities, but I can function. I can live,” he said during his remarks. “I can have friendships and conversations again.” 

The report from the committee includes stories from attendees, ranging from parents with chronically ill children who have been helped with cannabis, to physicians who back the reforms. 

Dr. John Farmer, an advisory committee member, OB/GYN, and addiction treatment provider who also serves as medical director of Solid Ground Counseling and Recovery, noted that he has “no knowledge of any reported overdoses from cannabis.”

“It is not possible to die from consuming too much cannabis. By legalizing medical cannabis, physicians would be allowed to prescribe THC products instead of opioids,” he said. “This not only gives doctors more options for treating patients but also helps stop addiction before it starts.” 

During the last legislative session, Beshear backed the passage of medical cannabis reforms but they were blocked by Republicans in the state Senate. In response, Beshear formed the committees and said he planned to look for options to legalize medical cannabis in the state via executive action.  

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Amsterdam Council Expected to Vote Against Banning Tourists from Coffee Shops

10/04/2022

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The Amsterdam, Netherlands city council is expected to vote against a proposal to ban tourists and other visitors from consuming cannabis in coffee shops, WION reports. The official vote is Wednesday but coffee shop owners and representatives, and researchers vocalized their opposition during a debate last week.  

The plan was first announced in 2020 by Mayor Femke Halsema but Amsterdam had secured a legal exception. Halsema – along with the police chief and public prosecutor – wants to slow the growth of the gray-market ‘soft drugs’ industry, address acute annoyances expressed by residents, and combat criminality, the report says.

There are more than 100 coffee shops that serve tourists. 

During the debate last week, Fatihya Abdi, Labour PvdA politician, said she would oppose the plan because officials could not offer “adequate guarantees” that action would be taken to prevent street dealing. 

Denk party leader and councilor Sheher Khan said there was little evidence to support the idea that soft drugs helped the hard drug trade and that as long as there is demand for cannabis, there would be street dealing, which could lead to more criminality than the sales that occurred in the coffee shops.  

A report published in April for the Bond van Cannabis Detaillisten business group found just under half of the tourists came for cannabis, and 24% would still come, even if they were prohibited from accessing cannabis. 

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Iowa Democrats Add Cannabis Legalization to Election Agenda

10/04/2022

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Iowa Democrats have included adult-use cannabis legalization on their election agenda as part of the party’s “people over politics” electoral plan, Iowa Capital Dispatch reports. The plan also includes lowering the cost of living, protecting abortion access, and investing in public schools.   

Democratic gubernatorial nominee Deidre DeJear also included cannabis reforms in her campaign platform, saying that adult-use sales in the state could generate as much as $50 million annually in new state revenues.  

“Regulating legal use of cannabis for people 21 years of age and older provides the opportunity for our state to ensure the product on the market is as safe and reliable as possible. Regulation will also help to realign our criminal justice system which will free up law enforcement resources for more pressing challenges affecting our communities such as gun violence and protecting our children. We will work to remedy the harm, both past, and present, caused by the criminalization of cannabis which has disproportionately impacted marginalized groups like people of color and low-socioeconomic groups. As we work towards these goals, we will ensure that people of color and small businesses have a strong stake in the inevitable economic windfalls of legalization.” — DeJear’s campaign website 

A March 2021 Des Moines Register/Mediacom Iowa poll found that 54% of adults in the state-supported adult-use cannabis legalization, with 39% opposed and 6% unsure. Democrats in the Legislature have pushed for the reforms but could not get the support of either their Republican counterparts or Republican Gov. Kim Reynolds.

Reynolds’ anti-legalization position was the focus of a recent ad by libertarian candidate for governor Rick Stewart. 

According to FiveThirtyEight polling data, Reynolds maintains a commanding lead over her Democratic challenger, leading by as much as 17 points. 

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Georgia Judge Halts Medical Cannabis Production By Recent Licensees

10/04/2022

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A judge in Georgia ruled two companies that were recently awarded licenses to produce low-THC medical cannabis in Georgia must halt their production processes, 11Alive reports. The decision comes after attorneys said the process used to award the licenses was flawed, the report says.  

Atlanta attorney Jake Evans said the state “cannot go out and execute on those licenses” until courts look at “issues about the way that process went forward to determine whether it was properly done.” 

The state had received 70 applications to produce medical cannabis and late last month, two applicants, Trulieve Georgia Inc. and Biological Sciences, were awarded licenses. That licensing decision came seven years after Georgia had decriminalized low-THC medical cannabis oils but failed to provide a legal path for producing, distributing, or otherwise accessing the medicine. In 2019, state lawmakers created a medical cannabis licensing structure but after awarding six licenses, complaints calling the system unfair and arbitrary stalled the program from moving forward.

This session, the Legislature ultimately failed to regulate cannabis products, the report notes, and Gov. Brian Kemp (R) set aside $150,000 from the state’s emergency fund to help move the process forward.

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Adult-Use Cannabis Sales Begin in Vermont

10/03/2022

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Adult-use cannabis sales in Vermont launched over the weekend with three shops opening to the public. Mountain Girl Cannabis in Rutland, FLŌRA Cannabis in Middlebury, and Ceres in Burlington all started retail sales on Saturday, the first day sales were allowed.  

Russ Todia, chief operating officer at Ceres told MyNBC5 on Friday that the rollout of adult-use sales in the state was a “real monumental for the state” and for his company. 

In all, at least 70 Vermont municipalities have opted in to allow retail cannabis sales. Other adult-use license hopefuls throughout the state are expected to get licensed in the coming weeks and months.  

The reforms were approved by state lawmakers in October 2020 after Gov. Phil Scott (R) allowed the legislation to become law without his signature. Cannabis had already been legal for medical and personal use in the state. 

Earlier this year, Rhode Island lawmakers approved a bill to legalize adult-use cannabis sales, making New Hampshire the only New England state to not have approved adult-use cannabis reforms.  

In an October 2021 report, the Vermont Cannabis Control Board estimates that spending on adult-use cannabis in the Green Mountain State could reach $225 million annually by 2025, equating to nearly $46 million in new state taxes. Vermont imposes a 14% excise tax on adult-use cannabis products sold to the public but does not impose a tax on the sale from cultivator to retail. Municipalities can also impose a 6% tax on sales that occur within their jurisdiction. 

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OSHA: Worker Death at Trulieve Holyoke, Massachusetts Facility Caused By Inhaling ‘Ground Cannabis Dust’

10/03/2022

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The federal Occupational Safety and Health Administration (OSHA) says a worker at a Trulieve Holdings LLC facility in Holyoke, Massachusetts, Lorna McMurrey, died from inhaling “ground cannabis dust,” commonly referred to as kief. 

McMurrey was 27 years old. 

“Filling pre-rolls She (sic) said she couldn’t breathe. Not being able to breathe Marijuana kief (dust) At 11:00 p.m. on January 7, 2022, an employee was grinding cannabis flowers, and packaging ground cannabis in pre-rolls. The employee could not breathe and was killed, due to the hazards of ground cannabis dust.” — OSHA in a report 

The facility is a non-union shop. Few other details are included in the report. In June, OSHA issued Trulieve three fines totaling $35,219 for alleged violations related to the death. Trulieve has contested those violations, according to OSHA records. The penalties are categorized as “serious” by the agency. 

McMurrey’s death was first reported by The Young Jurks podcast.  

Her obituary notes that she had “recently started working at Trulieve’s Grow Facility in Holyoke” but does not offer any further details.    

There is no exposure limit in place per OSHA for exposure to “ground cannabis dust.” 

Holyoke Mayor Joshua Garcia told The Shoestring that it was the first time he had heard about the death at Trulieve’s facility. He said he was “very shocked” to hear the news but provided no further comment. 

Holyoke has become a destination for cannabis companies as the city’s municipal dam and canal system can provide low electric rates. 

Trulieve has been cited at least twice before by OSHA for workplace accidents. In 2019, the agency cited the company for violating respiratory protection and hazard communication regulations at its grow facility in Quincy, Florida. In March, the company settled an OSHA case in Reading, Pennsylvania, where it was cited for violating a regulation requiring companies to report an employee’s in-patient hospitalization, amputation, or loss of an eye. 

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Conservative UK Police Commissioners Call for Increasing Penalties for Cannabis

10/03/2022

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Conservative police commissioners in the United Kingdom are calling for cannabis to be reclassified from a Class B to Class A drug, BBC News reports. If approved, the change would put cannabis in the same category as heroin and cocaine and mean harsher penalties for possession and potential life sentences in prison for dealers and producers.

The Home Office told the BBC that there are no plans to back the reclassification. 

“There are currently no plans to reclassify cannabis, which is controlled as a Class B drug in the UK on the basis of clear medical and scientific evidence of its harms.” — Home Office spokesperson to the BBC 

David Sidwick, the Police and Crime Commissioner for Dorset, told the BBC that cannabis was “driving harm” in communities. 

“We’re seeing it because it’s a gateway drug,” Sidwick said. “If you look at the young people in treatment, the number one drug they are in treatment for is cannabis.”

Peter Reynolds, the President of CLEAR, which opposes cannabis prohibition, called the proposal “completely crazy.” 

“The idea of doing more of the same as the past 50 years, which has quite obviously dramatically failed, is ridiculous,” Reynolds told the BBC. “The only people who want this are ignorant politicians and the people who sell illegal drugs, I’m crystal clear about that.” 

Under UK drug laws, penalties for possession of a Class A drug include an unlimited fine and up to seven years in prison, while suppliers and producers can be sentenced to life. 

Sentences for Class B drugs are up to five years for possession and up to 14 years for supply or production. 

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Steve DeAngelo Calls for the Toppling of Corporate Cannabis

9/30/2022

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Steve DeAngelo — the Founder of Harborside, Founder of The Last Prisoner Project, author of ‘The Cannabis Manifesto,’ and a long-time cannabis advocate, entrepreneur, and investor — released an op-ed this week across multiple cannabis publications calling for the industry to reject the pyramid-shaped business model prioritized by large cannabis corporations and multistate operators.

Titled Save the Cannabis Industry: Topple The Pyramids!, the article describes the blissful pre-legalization era of the California medical market — a time when the industry “worked in its basic purpose of providing high quality cannabis at affordable prices, and providing all of its participants with an adequate income and dignified lifestyle.”

But “everything changed,” DeAngelo writes, after California voted to legalize adult-use cannabis. He describes the collapse of California’s legacy market as most medical growers were locked out of licenses, the advent of corporate finances, and the emphasis these newcomers placed on the ability to scale. The article also describes the costly and slow industry roll-out in Canada, where big players started big moves to capture large sections of the federally legal industry. “In Canada, only 20% of cannabis produced… since 2018 has actually been sold,” he writes. “80% was of such low quality that it had to be destroyed or is still warehoused — resulting in the loss of $11 billion Canadian dollars of investors’ money.”

Rather than continuing down this path of wasting millions upon millions of dollars trying to gobble up a market share that will ultimately still be dwarfed by the unfettered, unregulated marketplace, DeAngelo dreams of the industry’s return to small businesses. “Thousands of legacy, artisan producers could get into the industry without the need for crazy amounts of capital,” he writes. And instead of a handful of multi-state operators jostling for brand awareness, he imagines cute tourist trap villages full of cannabis artisans, or even just a digital marketplace for cannabis cultivators to connect directly with consumers — something like “an Etsy for weed,” he writes.

That same sentiment was reflected recently in a federal proposal by U.S. Reps. Jared Huffman (D-CA) and Earl Blumenauer (D-OR) which seeks to let small-scale cannabis cultivators operate on a direct-to-consumer model once the plant is finally legalized nationwide.

And were that plan realized, big cannabis companies “would be freed from the thankless and impossible task of producing high quality cannabis in massive facilities,” DeAngelo writes. “They could stop disappointing their investors and focus instead on an achievable goal: providing the financing, infrastructure, and marketing capacity that small producers will need to succeed.”

In an interview with Ganjapreneur, DeAngelo said that while the industry’s failures had become a “source of extreme heartbreak” for him in recent years, he reached his tipping point after someone asked him whether it was even ethical to be encouraging legacy operators to be coming into such a broken system. The question surprised and stuck with him:

“Part of what I recognized when I did my analysis is just from a numerical point of view, the deck is stacked against the legacy community. Even if every cannabis license in the country that exists today went to a legacy operator, most legacy operators still wouldn’t be licensed because there are so few licenses. So if we really want to create significant meaningful room in the legal market for the legacy players, we need to start replicating the same structures that we had in the legacy marketplace.” — Steve DeAngelo, in an interview

When asked about getting cannabis investors and venture capitalists on board with changing the status quo, he recommended they “learn from what’s already happened.”

“Over the course of the last five years, the scaled-up model … has lost 11 billion dollars of investors’ money,” he said. “So if you feel like losing more money, go ahead and keep buying into that model which has proven not to work.”

Instead of buying up more licenses or pursuing regulations that lock up the supply chain and create even more artificial bottlenecks for high-quality product, DeAngelo recommends investors look instead to other sections of the cannabis economy such as the federally legal hemp or cannabis tourism industries.

But until the cannabis industry has seen that “mutually beneficial reset,” the boom-and-bust cycle will continue, he said.

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Japan Health Ministry Panel Recommends Allowing Cannabis Medicines

9/30/2022

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A health ministry panel in Japan on Thursday said that the nation should allow the use of cannabis-based medicines, while also suggesting strengthening laws on cannabis use, Reuters reports. While the recommendation could lead to a historic change in Japan’s zero-tolerance drug laws, non-medical cannabis use would remain outlawed.

Japan’s government has been debating legalizing cannabis medicines, the report says, and the panel said the government should pass those reforms. Currently, the epilepsy drug Epidiolex is undergoing clinical trials in Japan but the country’s cannabis laws would need to be revised in order to allow patients to access the drug. 

According to a National Police Agency report, Japan saw a record 5,482 people involved in cannabis-related criminal cases in 2021, an increase of 448 from the previous year, with 70% of offenders in their 20s or younger. Overall, 5.6 per 100,000 people were involved in cannabis-related offenses in 2021, which is nearly double the 3.0 rate in 2017. 

Japan’s Cannabis Control Act criminalizes the import, export, or cultivation of cannabis and simple possession carries a sentence of up to five years, according to the law firm Ohara & Furukawa. Possession with the intent to profit is punishable by up to seven years imprisonment and/or up to a 2,000,000 yen fine. Growing, importing, or exporting cannabis in Japan can be punished with up to seven years in prison, and engaging in any of those acts with the intent to profit carries a punishment of up to 10 years imprisonment. 

In a survey of 829 drug offenders by the National Police Agency, more than 70% said they did not believe cannabis is harmful. 

The health ministry report noted that just 1.4% of people in Japan had ever consumed cannabis, compared to 20-40% in Western countries. 

The recommendation by the panel was based on meeting medical needs and harmonizing Japan with international standards, the report says. The reforms would apply to cannabis products whose safety and efficacy were confirmed under laws governing pharmaceuticals and medical devices. 

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Former Green Thumb Industries Employee Files Sex and Age Discrimination Lawsuit

9/30/2022

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A former employee at Green Thumb Industries (GTI) has filed a sex and age discrimination lawsuit against the company, according to Green Market Report. Carrie Baker, who worked at a Rise dispensary in Pennsylvania and is in her mid-50s, said she was passed over for a shift supervisor position in favor of a much younger and less qualified male co-worker prompting her to file a complaint with the Pennsylvania Human Relations Commission (PHRC) in 2018. 

Once she filed the PHRC complaint, Baker said she began receiving unfair and disproportionate disciplinary actions at work, which would lead to her eventually quitting in June 2019, the report says. 

She then filed a complaint with the U.S. Equal Employment Opportunity Commission (EEOC) in February 2020. The EEOC announced they closed their investigations into the PHRC complaint and the EEOC complaint in late June, noting they were not issuing a determination and issued Baker her suit rights. She then filed a lawsuit on September 22, the report says.  

Baker is now working in the medical cannabis division for Pennsylvania’s Department of Health.

In 2021 and 2022, GTI was named to Crain’s Chicago Business Fast 50 list and Best Workplace by MG Retailer magazine in 2018, 2019, and 2021. It has 77 open dispensaries in 15 states and employs more than 4,000 employees, the report notes.

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New Mexico Judicial Branch Seeks Changes to Cannabis Expungement Process

9/30/2022

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New Mexico’s judicial branch is seeking to change the state’s rules for expunging cannabis convictions, the Albuquerque Journal reports. Supreme Court Chief Justice Shannon Bacon said the program should require individuals to file their own applications for expungement rather than requiring the judicial branch to identify the cases.  

“We think there’s a more straightforward and simplistic way to handle this that will take what has been an incredibly onerous process off the judiciary and put the control in the hands of the person that’s had the conviction.” — Bacon, during a meeting of the legislative Courts, Corrections and Justice Committee, via the Journal 

The expungement provisions were included in the Legislature-approved adult-use cannabis law. Bacon hopes lawmakers will address her concerns during the state’s upcoming 60-day session. 

In practice, Bacon said forcing the judicial branch to review criminal records for expungement eligibility has proven unmanageable since many individuals with cannabis-related convictions were also convicted of other crimes. She added that many prosecutors and law enforcement agencies, especially in southeast New Mexico, have used an objection provision included in the law to try to prevent cannabis convictions from being expunged from some records. 

“Judges are spending untold hours addressing objections to this process,” she told the committee, “whether there’s a cannabis charge or not.” 

Barry Massey, spokesman for the New Mexico Administrative Office of the Courts, told the Journal that there is not yet available data as to exactly how many residents have had their cannabis-related convictions expunged since the law took effect and that there was no data as to the number of objections filed by prosecutors in advance of a July 1 deadline. 

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Missouri Association of Prosecuting Attorneys Urges Voters to Reject Cannabis Legalization

9/30/2022

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In a position paper released Thursday, the Missouri Association of Prosecuting Attorneys (MAPA) urged voters to reject the constitutional amendment to legalize cannabis in the state. The organization argues that if the amendment is approved, the state’s courts would be required to allow people to continue using cannabis even if they are involved in fatal accidents while driving under the influence.

In the paper, MAPA cites a September 2021 Rocky Mountain High-Intensity Drug Trafficking Area report which claims that since adult-use cannabis legalization was legalized in 2013 in Colorado, traffic deaths in the state in which drivers tested positive for cannabis increased by 138%. MAPA says that under the amendment courts would be barred from prohibiting cannabis use by drivers involved in fatal accidents and by those on probation and parole.

“Under Amendment 3, our legislature could not even set a maximum limit for marijuana in the bloodstream, while Colorado does. Amendment 3 is dangerous and makes drugged driving tougher to prosecute than drunk driving.” — MAPA, Amendment 3 Legalizing Recreational Marijuana Dangerous for Missouri 

The organization describes the proposal as “more than thirty pages of mischief” and alleges that it fails to protect “children from dealers in black market marijuana.

“While a person under 21 is not to possess recreational marijuana, a dealer can give or sell to middle schoolers and face only a ‘civil penalty’ of $100,” the organization alleges. “Prosecutors do not enforce civil penalties. Amendment 3 is silent on who would. Parents may be responsible for suing violators for this ‘civil penalty.’ This is not a deterrent. It is an incentive to ignore the safety of our kids.” 

MAPA says that because the reforms are a constitutional amendment any changes to the law could only be made in a presidential election year with 60% of voter support.

In a statement to the St. Louis Post-Dispatch, John Payne, campaign manager for Legal Missouri 2022, pushed back against the claims that selling or giving cannabis to children would only be met with a civil penalty were the amendment approved, and that it would effectively legalize driving while under the influence of cannabis. 

“Under Amendment 3, both driving under the influence of marijuana and selling marijuana outside the regulatory system remain illegal,” he said, adding that individuals who sold cannabis to middle schoolers would still face felony drug charges under Missouri law. 

“Amendment 3 creates a thorough system of regulation,” he said, “which will protect public health and safety far better than our current illicit and unregulated system.”

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Sitka Legends: Combining Talent from Multiple Micro Cultivators

9/29/2022

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As the Canadian cannabis industry takes shape, small growers are struggling to survive and many have lacked the means to even enter the market. Vancouver Island-based Sitka Legends wants to change that. The micro-park leases cultivation spaces on its 55-acre industrial parcel to micro-cultivators. Growers can then sell high-quality wholesale flower back to Sitka where it is processed, packaged, and sold in Sitka retail stores in a relationship that both parties have found successful.

The brand’s Bruce Banner is one of the longest-running SKUs on the market. They accomplished that without any marketing or data agreements, their sole focus has been on operations. Sitka CEO Michael Forbes told Ganjapreneur that the model is working, but “You have to have all the stars align for this.” To pull off the micro-park, Forbes needed the capital to build out the units without traditional financing, zoned industrial land which is in short supply, and local access to an abundance of legacy growers.

Forbes applied for an LP license as soon as he was able to under the new law, but his application took a long time and during the waiting process, the laws changed. When micro-cultivation regulations were added, he already owned industrially zoned land (which is expensive to hold and hard to come by) so he decided to re-zone the parcel as a cannabis micro-park. Once they were approved, Sitka interviewed more than 100 cultivators prioritizing those who could grow high-quality cannabis and from that pool of applicants, they chose the ten micro-license holders who are currently operating at the park today.

At the time, Carl Ketch, CEO of Sitka micro-cultivator Quadessence, was navigating his entry into the adult-use market after six years of growing medically. He searched for a municipality that would allow micro cultivators but after finding one, he learned that building the operation out and finding industrial zoned land would require a multi-million dollar investment. Eventually, they were selected to partner with Sitka, which brought down their required investment from over $3 million to $1.2 million. Ketch said that at the time, it was the only way he could make Quadessence happen. “If we didn’t partner with Sitka we wouldn’t be in the legal industry, I can tell you right now that there’s a lot of people in Canada that wish they were in our shoes.”

Quadessence is currently producing about 110 lbs of high-quality wholesale flower every 37 days. They grow a few signature strains and are always testing new phenotypes to isolate genetics with high cannabinoid content that produce large quantities of flower. About 80% of their wholesale flower is sold to Sitka and the rest is sold independently, and they’ve yet to be challenged to move product. All cannabis sold to Sitka is packaged and branded as Greenade or Sitka, featuring a photo and small bio of the grower on the back of each package.

Sitka takes a passenger seat in managing individual micro-cultivations, recognizing that every grower uses their unique methods. They simply provide the space outfitted with electricity and a roof rain catchment system that covers their water usage for most of the year – in dryer months, Sitka trucks in water for the growers. Some of the most essential support comes through processing, packaging, and sales. “This is a very complex business to get off the ground if you are a small entrepreneur. The Sitka model splits it up into two so the grower does what they do best which is growing, then Sitka does the packaging, processing, and sales,” Forbes said.

Ketch expresses that their success is only possible because they dialed in their growing methods and came into the space with cannabis cultivation knowledge. “The thing about growing cannabis is that it’s literally feast or famine,” he said. “If you’re not growing a product that is high enough quality to get the bigger dollar, your business can go under really fast. Same thing if you’re not getting the yields. It’s a lot harder to do than it is to put on paper.”

After speaking with Forbes and Ketch, it’s clear that this partnership is working well for both parties but it has yet to be duplicated in Canada or the United States. Even so, Forbes is convinced that craft growers will soon take up a large market share, much like the beer industry when craft brewers could legally enter the space. “With time, as the laws and the rules and the market shakes out, I think you’re going to see a shift to smaller, craft batch cannabis in the marketplace. I think Sitka is at the front of that charge.”

This year, Sitka is looking forward to Farmgate sales which would allow licensed producers to sell directly to consumers, and when permitting goes through, they will start the process of expanding to build out more cultivation facilities.

At the end of our conversation, I had to ask Ketch: if he could go back, would he take on this partnership with Sitka again? “There wouldn’t have been a different path,” he said. “I would have done it every time, and I’m glad that we did for sure.”

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