Sackville & Co and Sackville Studios: Representing the Cannabis Consumer Through Branding & Accessories

9/14/2022

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Haley Dineen and Lana Van Brunt are the co-founders of Sackville & Co, an online boutique of aesthetic consumer goods curated for people who want their commonly used cannabis accessories to integrate seamlessly with their style. Since its founding, the pair have both negotiated the sale of the company and fought to regain ownership due to a breach of contract, all while starting an entirely new business: Sackville Studios. With those challenges behind them, they are moving forward to create lasting products for consumers and branded moments for clients. Sitting in conversation with either entrepreneur, it’s clear the women simply love what they do. “We’re genuinely trying to create something beautiful and are beyond excited that anyone is interested,” said Van Brunt.

With their first endeavor, S&Co, the duo set out to design useful, gorgeous cannabis accessories. The online boutique goes far beyond your corner store headshop, instead centering on experience, creativity, and culture. “Cannabis is so much more than just the act of consuming,” Dineen said, “it’s so much more about connecting to different parts of yourself.” S&Co products are meant to help people explore those nuanced parts, and to create commonly used cannabis accessories that blend with one’s home decor. Imagine a wine and charcuterie night with friends: the glasses are gorgeous and the cheese board is ornate – why shouldn’t the grinder, papers, and lighter match the vibe? That’s the question Van Brunt and Dineen seek to answer with S&Co.

The team was intentional with every step of the branding process – the name was to be vaguely cannabis adjacent but not on the nose, and the brand was to remain genderless. But the women-founded business was consigned to the wellness category immediately, which did not gel with their vision. In response, the pair pulled back the launch and purposefully rebranded to spill outside the trite lines of gender. “We wanted to be a brand that existed in a genderless space. Any woman who’s running a brand, all of a sudden it’s a brand for women. Our decision in updating the brand was to make sure that we weren’t creating guardrails for our opportunity to grow because of how would be defined,” said Van Brunt.

A short time into its run, the company was growing and required more funds to continue. After months of meetings and multiple deals falling through after term sheets, they had found their ideal partner but soon the negotiations turned from discussing investment to the full purchase of the company. The pair negotiated the contract and learned a lot about each other in the process — specifically, how to stand your ground when being bullied into signing a contract. To Van Brunt it came down to gut instinct, “When I get something in my gut that just feels wrong, I would rather lose on my own terms than somebody else’s.”

Dineen credits Van Brunt’s fortitude in those meetings as those negotiations were vital in recovering S&Co, “It was those very deal points that we were really standing our ground on that ended up giving us the room to sue for breach of contract and it ended in us getting Sackville back.”

After eight months of negotiations, a contract was drawn up that met the founders’ standards and they signed — but the parent company had a change of control and they learned S&Co would be bankrupted as the new CEO didn’t see value in the brand. Dineen and Van Brunt immediately entered litigation and began the fight to regain control of the brand they had built. Unfortunately, the effort was expensive so during that time, they pivoted into taking on private clients, an endeavor that soon evolved into Sackville Studios. This work funded the women as they pursued ownership of their former business. And eventually, they won it back.

In the meantime, Sackville Studios has become an established multidisciplinary cannabis design and production studio working with clients like Playboy and Select. Studios’ offerings are unique in the space, as many brands have overlooked the power of building a culture around their lines. Studios builds a lifestyle in an honest way that doesn’t pander but rather shows that the brand is listening and responding to their clientele – just like they did with S&Co. This may be a natural step in the right direction for cannabis, where the focus is on genetics while branding is in varying levels of disarray from state to state.

“Not having a lifestyle brand means nobody has any brand affinity or brand loyalty. People are shopping by price at dispensaries, it has become a really difficult space to play in because people weren’t investing in building that connection with their consumer. Additionally, swag and merchandise has become a bit of a dirty word but ultimately, everybody wants something beautiful they can use in their home that has a utility and fits their aesthetic, and boom — it’s also a marketing opportunity for you,” said Van Brunt, who considers the moving pieces to arrange the big picture.

And Dineen, who hones that big picture into the finer details, continued, “Most consumers don’t really have a good handle on how to read a label or approach cannabis to get what they’re looking for out of it. When you can express that to them through product touch points that are so easily recognizable by them, and really set the vibe, and the tone, and the feeling for what the experience is, … it’s just like, oh yeah, that’s a full circle moment!”

With Studios, Van Brunt and Dineen work for the client, and with S&Co, they work for the consumer, but both companies are designed to attract the right consumer to a product they’ll love, and to do this they use their experience and natural talents.

To learn more about Sackville & Co visit sackville.co, where you can learn about limited edition collabs like their recent release with Flatbush Zombies that sold out in a weekend. Check out the Sackville Studios portfolio at sackvillestudios.co.

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Federal Bill Would Let Small Cannabis Growers Sell Directly to Consumers Across State Lines

9/14/2022

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U.S. Reps. Jared Huffman (D-CA) and Earl Blumenauer (D-OR) filed a bill on Wednesday to help small-scale cannabis cultivators compete with larger industry players by shipping and selling products directly to consumers across state lines, Marijuana Moment reports.

The Small and Homestead Independent Producers (SHIP) Act seeks to address concerns that when the federal prohibition of cannabis finally comes to an end, the industry could easily — and to the detriment of small business owners — be consolidated under the multi-state operators which already dominate many of the state markets. But giving small-scale operators the ability to operate on a direct-to-consumer model could help small growers save money on distribution costs or working directly with retailers.

The bill would take effect following the plant’s eventual federal legalization.

“It is a daunting business environment that they’re facing. Markets are consolidating. The huge multinational corporations are certainly going to do very well, but we want to make sure that the smaller operations have a chance to compete and succeed.” — Huffman, via Marijuana Moment

The bill states that a “small cultivator of marijuana and a small manufacturer of a marijuana product may ship and sell marijuana or a marijuana product to an individual located in that State or another State in which possession of marijuana or the marijuana product is lawful by that individual, using the Postal Service or any private or commercial interstate carrier.”

According to the report, small cultivators are considered in the bill to be operators with up to one acre of outdoor cannabis canopy, up to 22,000 square feet of greenhouse cannabis canopy, or up to 5,000 square feet for indoor cannabis canopy. Small-scale manufacturers, meanwhile, are defined as those producing manufactured cannabis products such as salves, tinctures, edibles, or concentrates but which have gross annual revenue of less than $5,000,000.

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Brooklyn Prosecutors Seek to Dismiss 378 Cases Linked to Corrupt NYPD Cops

9/14/2022

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Prosecutors in Brooklyn, New York last week asked a judge to dismiss 378 criminal convictions – mostly low-level drug and traffic offenses – from 1999 to 2017 that relied on 13 New York Police Department officers who were later convicted of crimes related to their official duties, the New York Times reports. If approved, it would be the largest mass dismissal of convictions in the nation, according to the National Registry of Exonerations outlined by the Times.

Last year, the Queens district attorney moved to dismiss 60 convictions while the Bronx district attorney vacated more than 250 convictions that relied on the work of one officer, Joseph Franco, a former narcotics detective, who was charged with perjury and other offenses in connection with his testimony with prosecutors and undercover work. In all, the total is expected to rise to 496, the report says. Franco was fired and awaiting trial. Franco was also involved in the cases in Queens, the Bronx, and Manhattan that district attorneys have vacated or are seeking to vacate, the report says.   

None of the 13 officers in the Brooklyn cases are still with the force and all have been convicted of crimes that they committed while undercover and street-level cases. Charles Linehan, a former Manhattan prosecutor who has run the Brooklyn district attorney’s conviction review unit since January described the crimes as “quick hits with little oversight.”

Of the Brooklyn cases, 331 were misdemeanor convictions and 47 felonies and about half of them involved four officers who were involved in a corruption scandal more than a decade ago involving the police department’s narcotics operations in Brooklyn. In that case, officers were found to have planted evidence, falsified records, and rewarded informants with drugs.

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Study: Allowing Legal Cannabis Companies May Increase Local Home Prices

9/14/2022

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A new study suggests that allowing licensed cannabis businesses in a town or city increases home values, NORML reports. The study was conducted by Rutgers University with funding help from the New Jersey State Policy Lab.

Researchers found a nearly 2% bump in home prices in cities that embraced legal cannabis compared to cities that adopted cannabis bands. They said it was unclear if there was a direct correlation between higher home prices and cannabis establishments but they were ultimately confident that “allowing cannabis-related businesses does not negatively impact home sales prices.”

“In terms of policy recommendations, our results suggest state and local policymakers can be cautiously optimistic about the short-run impacts of allowing cannabis-related businesses in their jurisdictions.” — Study authors, via the NORML report

The report also notes that other studies have returned similar results, while even others suggest that allowing cannabis businesses in a community leads to faster job creation rates than those without cannabis businesses.

“It’s time for local officials to put an end to the NIMBYism [Not In My Backyard] and unwarranted fears surrounding the establishment of licensed marijuana retailers,” NORML’s Deputy Director Paul Armentano said. “Cannabis is here and here to stay. Municipalities need to embrace this reality and provide the necessary oversight in order to hold these businesses accountable and to make this marketplace safe, transparent and profitable for the community.”

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Why Some Testing Labs Are Inflating Cannabis THC Scores — And How to Fix It

9/14/2022

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Editors note: This guest contribution was co-written by Trent Hancock and Shayney Norick, who are co-founders and the head breeder and head grower respectively for Creswell Oreganics, an Oregon-based licensed cannabis cultivator.

Imagine before you sit two very different wines. Visually similar for the most part, yet one wine is crafted from high-quality grapes grown in an ideal vineyard and the other is as majestic as waters cascading from a drain pipe. You wouldn’t choose one over the other based on alcohol content. Instead, a wine enthusiast would distinguish them by aroma and taste. Cannabis in this aspect is very similar. It’s nice to see that labs giving out extraordinarily high THC percentages is finally a topic of discussion in cannabis business circles but we have yet to see an article that focuses on the root of the issue which exists in each and every legalized state.

I would like to start by stating that most labs are honest professionals. However, because of the way the regulations were written, the states have structured testing in a way that forces private labs to compete for the business of cannabis companies. The demand for high THC currently determines cannabis’ value and it has created an incentive for labs to give higher scores to their clients, which means the labs that are willing to give higher THC scores have a business advantage.

Everyone knows the phrase “the fox guarding the henhouse,” and no phrase describes the current cannabis testing standards better. In Oregon, even with the most extensive standards in cannabis testing’s short history, they have forgotten the most important thing: don’t let the fox guard the henhouse!

Understanding the status quo

The current “chain of custody” for samples being tested is completely compromised because the growers and processors determine which product is sampled, and which products go to dispensaries under that test result. Since growers and processors are simply clients to the labs, they are not in a position to actually protect consumers. If state legislators in legal states knew how testing actually worked and that their constituents were not being protected, they would have never approved the prevailing model of testing.

The public is not usually informed about how the sampling process works for cannabis testing so I would like to lay it out for everyone, from the perspective of a licensed Oregon cannabis farm:

  • After the harvest or extraction process, the producer/processor calls a private lab of their choice to set a test date for the lab to pick up samples at the company’s facility.
  • A Metrc “batch sticker” is used to identify the product to be tested. The producer/processor alone determines which batch is tested under this sticker.
  • The product/batch to be tested is presented to a lab employee by the producer/processor. There is no way for this batch to be verified by the lab, and it could easily come from a different batch that has already tested clean.
  • A lab employee takes a sample from the batch presented to them and the lab later emails the test results to the producer/processor.
  • Products that fail testing are not required to be destroyed until the producer/processor has a chance to re-test it. Failed test results are not made public, and dishonest companies can simply present a clean batch to get past testing on the second test. They are able to sell whatever product they choose to dispensaries under the new clean test result.
  • The producer/processor decides what goes to retail stores under the passed test result, knowing the product is never tested at the retail shelf. Ultimately, this allows dishonest producers/processors the ability to sell dirty products under “clean” batches and never get caught.

Solutions

This dilemma and potential health risk to consumers could be dramatically reduced by:

  • Private labs working directly for the State. Severing the relationship between labs and cannabis companies is in the best interest of honest businesses, but most of all it is in the interest of the consumers who deserve real testing.
  • Random monthly testing at all dispensaries. Tracking software like METRC could be used to red flag a failed batch from the dispensary shelf, and identify every dispensary that has product from that batch. The state agency with oversight would be able to immediately get the product off other shelves and have it tested to verify the issue came from the farm.
  • Publishing test results would let the press and the public know of failed tests. It would also make public the detailed reports that show “allowable traces” of pesticides and fungicides detected in cannabis products.
  • Risk of losing their company’s production and/or processing license. If cannabis businesses knew that failed tests would be public information and could put them at risk of losing their license from multiple failed tests, the consumer would have real protection.

Sadly, the majority of pesticides & fungicides used by growers are not being tested for, and have never been tested for safety when combusted. For example, many growers use Neem oil on flowering plants. Neem is an oil-based organic spray that requires a degreaser (usually dish soap) to break down the oil into water for spraying. When sprayed on the plant, the soap breaks down and merges the Neem with the plant’s trichomes, altering the aroma, taste, and overall quality of the cannabis. Once another oil has merged with the trichomes it is impossible to remove. Currently, there is no movement to test products for risk upon combustion, creating a void in the industry and its understanding of the potential health risks from these unregulated solutions.

Prior to testing, the quality of cannabis was determined through the senses. Much like top-shelf wine, craft cannabis starts with the plant’s environment, its genetics, and the capability of its growers. Naturally, its visual appearance is judged first but a sample’s distinctive aromas, flavors, overall smoothness of the smoke, and aftereffects reveal the true quality of the product and producer. Quality cannabis products should taste incredible from start to finish whilst smooth enough to smoke all day. Grown right, you will experience distinct flavors created by each plant’s genetics. It should never leave your lungs or throat feeling like you smoked a pack of cigarettes. Even the smell of the smoke in the air should be clean, aromatic, and just as enticing as the beginning product.

But until the business relationship between cannabis producers and testing labs is adjusted, these quality indicators will continue to be overlooked for THC potency and, sadly, its inflation.

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Cannabis to Remain on World Anti-Doping Agency’s Banned Substances List

9/13/2022

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The World Anti-Doping Agency (WADA) is set to leave cannabis on its list of prohibited substances for 2023 despite significant backlash over the suspension last year of star American runner Sha’Carri Richardson, who was ultimately blocked from appearing in the 2020 Tokyo Olympic Games, the Wall Street Journal reports.

Failing to remove cannabis from its prohibited substances list would mean that professional athletes who must adhere to WADA’s drug-testing codes will continue to be blocked from using medical or adult-use cannabis despite its widespread legalization and acceptance in many countries and U.S. states.

The report says that WADA’s Prohibited List Expert Advisory Group had included cannabis on a draft list of banned substances for 2023 and that WADA had been advised by the group to maintain its ban, arguing that according to scientific evidence, the plant meets the criteria for being included on the list.

“The draft 2023 Prohibited List is still under consideration. WADA’s Executive Committee will be asked to approve the final version of the List during its 23 September meeting, with the List itself being published on or before 1 October and coming into force on 1 January.” — WADA spokesperson, in a statement

Richardson, 22, was suspended last year just a few weeks before the 2020 Summer Olympic Games after testing positive for cannabis, which she admitted to having used to deal with the “emotional panic” following her mother’s death. At the time, WADA said the agency sympathized “with the circumstances” and applauded Richardson’s “accountability for accepting that the rules are in place for athletes worldwide” but it could not reconsider her suspension.

The incident, however, sparked international outrage and led to an outpouring of support for Richardson from the public, other professional athletes, and politicians including U.S. Reps. Jamie Raskin (D-MD) and Alexandria Ocasio-Cortez (D-NY). Ultimately, WADA had announced last September that the agency would review its anti-cannabis policies although it now appears no changes will be made.

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Pregnant Woman Jailed for Three Months Without Bail for Smoking Cannabis

9/13/2022

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A pregnant woman was held in an Alabama county jail for three months and denied bail in order to “protect” the fetus after she admitted to having used cannabis while pregnant, AL.com reports. Police and courts are relying on a state law that prohibits pregnant women who are arrested for drug offenses to post bail.

The case involves the Etowah County Detention Center, where 23-year-old Ashley Banks, arrested for the possession of cannabis and a pistol without a permit to carry, was denied bail after she admitted to smoking cannabis the day she found out she was pregnant. Her attorneys say Banks is not the only one, however. They say multiple women and new moms have been held for weeks or months in the same jail after being accused of exposing their fetuses to drugs. The moms’ release is often based on special bond conditions involving rehab and $10,000 cash, according to the report.

Dr. Carolyn Sufrin, an OB/GYN and expert on incarceration and pregnancy at Johns Hopkins University School of Medicine, wrote in an affidavit to the court asking for Bank’s release:

“The stress and conditions in jail and prisons, including lack of consistent access to standard prenatal care and mental health care, poor diets, poor sanitation, infestations with bugs and vermin, poor ventilation, tension, noise, lack of privacy, lack of family and community contact, can be detrimental to physical and mental health which can result in poor pregnancy outcomes for both the mother and the baby.” — Dr. Carolyn Sufrin, in an affidavit to the court

Banks, who has a high-risk pregnancy, eventually went to the hospital and was diagnosed with a subchorionic hematoma, a condition that causes blood to pool near the wall of the uterus during pregnancy and can result in miscarriage or preterm delivery. She said that after returning to the jail, she continued to bleed for five weeks, suffered from fainting spells and hunger, and had to sleep on the floor.

Two times she was assessed for drug addiction but ultimately she did not qualify for the county’s free drug addiction services. Additionally, the county would not accept her $10,000 bail without the accompanying drug treatment services, which led to her prolonged time behind bars. She was eventually released on August 25 to Community Corrections, AL.com reported.

Another woman, Hali Burns, was held in Etowah County jail just six days after giving birth, with police saying that she had tested positive for a drug used by pregnant women with opioid addictions to help manage cravings and withdrawal.

Alabama has an exceptionally high incarceration rate, according to Prison Policy Initiative data, locking up about 938 people per 100,000 residents.  

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Smuggler Who Spent 11 Years In Prison for Trafficking Launches Massachusetts Cannabis Brand

9/13/2022

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The “Gentlemen Smugglers” were a group of East Coast drug smugglers who from 1971 to 1986 brought some 250 tons of cannabis to American shores. They were eventually caught during Operation Jackpot, the first multi-pronged federal law enforcement investigation which kickstarted then-President Reagan’s long and disastrous War on Drugs.

Today, Barry “Flash” Foy — a smuggler-turned-entrepreneur who served 11 years in prison under federal drug kingpin charges — has joined the industry once again, this time launching a legal Massachusetts cannabis brand under the same name.

Legendary outlaws

The original Gentlemen Smugglers were known for being better educated than most smugglers and, most notably, nonviolent. They were given the name by a local newspaper writer who was reporting on investigators’ efforts to catch the outlaws, and the name stuck.

“I’m thankful to her for doing that,” Foy said in a recent interview covering his journey to the legal cannabis space.

“The name made sense for us because we were in the cannabis business. We weren’t in the cocaine business, we weren’t in any other kind of drug business, we were just in the cannabis business — and it’s not a business that requires any kind of craziness.” — Barry Foy, in an interview

Barry Foy (left) and the original Gentlemen Smugglers, pictured at the height of their success.

The group’s smuggling escapades, which included international cat-and-mouse games with then-U.S. attorney Henry McMaster, who is now the governor of South Carolina, were thought to have generated more than a half-billion dollars on the black market. Their story was closely documented in Jason Ryan’s 2011 bestseller Jackpot: High Times, High Seas, and the Sting That Launched the War On Drugs.

The smuggler’s return

Now, nearly 40 years after the smuggling group’s downfall, Gentlemen Smugglers is officially launching in Massachusetts this month with products manufactured in partnership with Root & Bloom, a vertically integrated cannabis operator handpicked by the GS team, with the first batch of products featuring cannabis grown by Lazy River Products. The brand will initially carry two types of products: a “High Tide” product featuring Applejack (a sativa strain) and a “Low Tide” product featuring Platinum OG Kush (an indica strain). The company’s earliest offerings, which are set to hit store shelves in the coming weeks, will include both pre-rolls and raw flower.

“I think the cannabis business will have some sputtering and some stops and starts but I think overall, it’s the people’s wish,” Foy said. “Now that the people are on board and attitudes have changed, it’s going to be a lot of fun to be on this side of [the industry].”

While Massachusetts does have cannabis social equity opportunities for “individuals most impacted by the War on Drugs,” these did not factor into Gentlemen Smugglers’ decision to launch in the state, Foy said. Rather, the team preferred the state’s business-friendly regulations and the fact that Massachusetts, with its rugged and widely varied coastline, has been utilized by smugglers since the days of alcohol prohibition.

Foy also said he wants to use the brand’s platform and success to support other cannabis prisoners, and that portions of the company’s proceeds are planned to help the Last Prisoner Project and potentially other prisoner advocacy groups. “I spent a long time behind bars for the plant and I don’t think anybody should be there, and this is a way for me to help out the brothers and sisters who still are,” he said.

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Arkansas Gov. Announces Opposition to Cannabis Legalization Question

9/13/2022

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Arkansas Gov. Ava Hutchinson (R) last week indicated he will vote ‘no’ on the question to legalize cannabis for adult use. In a tweet announcing the decision, Hutchinson linked to the website of the anti-legalization group Safe and Secure Communities.

Hutchinson is a former administrator for the U.S. Drug Enforcement Administration.

“The science is clear. Recreational marijuana leads to increased drug use among minors & more dangerous roadways. This November, I’m voting NO on Issue 4 to legalize recreational marijuana in Arkansas & I hope you’ll join me.” — Hutchinson via Twitter 

Hutchinson’s announcement comes a month after David Burnett, the police chief of Fairfield Bay, formed a committee opposing the reforms. In the filing to form Save Arkansas from Epidemic, Burnett and attorney AJ Kelly said the committee’s purpose is to “oppose the 2022 proposal to amend the Arkansas constitution, which would ‘legalize’ under state law the ‘recreational use’ of marijuana. Committee opposes legalization of recreational marijuana.”

Arkansas does allow medical cannabis use and the program has proven financially successful, reaching a new record for total pounds sold in August. In all, licensed cannabis businesses sold $23.7 million worth of medical cannabis products last month.

Hutchinson is term-limited and not seeking reelection. The reforms are supported by Democratic gubernatorial candidate Chris Jones, while Republican nominee Sarah Sanders has not stated her position on the proposal.

Despite the rejection of the initiative’s popular name and title by the state Board of Election Commissioners, which claimed it doesn’t fully explain the constitutional amendment or that the measure would repeal the state’s current THC limit on medical cannabis products, the Arkansas Supreme Court is conditionally allowing the question to appear on November ballots. The court, though, has not yet confirmed whether it will allow the votes to count.

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Cheef Botanicals Introduces Private Labeling For Its CBD Products

9/12/2022

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First online CBD platform to introduce private labeling for its CBD products

Commerce, California (12th September 2022) – Cheef Botanicals introduces private labeling for its CBD products to allow ‘store brands’ to resell the product with exclusive branding. The CBD market has been on a bull run since the legalization of hemp via the Farm Bill of 2018. The market grew by a whopping $550 million in 2021 approximately and is expected to reach $3150 million by 2028 approximately. Therefore, because it seemed high time to contribute to the CBD industry, Cheef Botanicals introduced the dynamic of private labeling to help small businesses and entrepreneurs to grow with the industry and become profitable. Cheef Botanicals wants people to consume vegan CBD products extracted from organic Colorado-grown hemp with multiple health benefits.

Why Is Private Labeling Popular In The Hemp Industry?

Private labeling is where a third party forms an agreement with a manufacturer on terms where the concerned party uses the already manufactured products and sells them under custom-made labels and brand tags. Private labeling helps small businesses sell high-quality manufactured products with customized branding. Private labeling is slightly different from traditional white labeling. The manufacturer provides the base product and makes the specific design, branding, and labeling customizations regarding white labeling. The third party must choose only from the available options and make deals accordingly.

CBD Products Offered By Cheef Botanicals For Private Labeling:

CBD Gummies:
Cheef offers CBD gummy cubes and potent vegan CBD gummies in 5 flavors.

CBD Lotions & Balms:
CBD lotions and balms by Cheef botanicals are widely popular because of their fast-acting ability and skincare properties. The popular varieties are CBD body lotions, CBD salves, and balms.

CBD Flower:
The brand provides high-potency CBD flower, pre-rolls, and joints which are available for private labeling.

About Cheef Botanicals
Cheef Botanicals is an online CBD marketplace run by a team of experienced hemp enthusiasts making potent CBD products. Over several years of operations, the brand made a mark in the hemp industry by selling premium and potent CBD and CBG products. Cheef Botanicals becomes the first brand to introduce private labeling for CBD products and contributes to boosting the hemp industry. Visit the official website cheefbotanicals.com to know more about private labeling.

 

 

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UK Blocks Cannabis Legalization Bill in Bermuda

9/12/2022

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The United Kingdom (UK) has refused to grant royal assent to Bermuda’s cannabis legalization package, possibly throwing the British Overseas Territory into a constitutional crisis, the Royal Gazette reports. Bermuda’s governor, Rena Lalgie, said she was “instructed” by UK’s foreign secretary to prevent royal assent to the Progressive Labor Party’s cannabis licensing bill. 

The governor reserved giving assent to the bill in May, urging talks between the two sides, the report says. 

Premier David Burt said last year that if royal approval was withheld from the measure, it would “destroy” relations between Bermuda and the UK. Lalgie made the announcement on ex-Foreign Secretary Liz Truss’s first day as the new UK Prime Minister.

Bermuda’s Attorney General Kathy Lynn Simmons gave no signs that the Caribbean island would back down, saying the denial is “disappointing, but not surprising, given the confines of our constitutional relationship with the UK government and their archaic interpretation of the narcotic conventions.”

“The people of Bermuda have democratically expressed their desire for a regulated cannabis licensing regime, following the strong endorsement at the ballot box and an extensive public consultation process. The Government of Bermuda intends to continue to advance this initiative, within the full scope of its constitutional powers, in keeping with our 2020 general election platform commitment.” — Simmons via the Gazette

The governor said London opposed the cannabis bill because it “is not consistent with obligations held by the UK and Bermuda under the 1961 Single Convention on Narcotic Drugs and the 1971 Convention on Psychotropic Substances.”

Regardless of the royal assent, the cannabis legislation faces challenges within Bermuda’s own government, the Gazette notes.

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Ascend Wellness CEO Arrested for Domestic Battery

9/12/2022

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Ascend Wellness Holdings, Inc. CEO and Founder Abner Kurtin, 55, was arrested last week on misdemeanor battery charges against his domestic partner, The Deep Dive reports. Kurtin was eventually released on a $1,500 bond and issued a stay-away order allowing pre-trial conditional victim contact.

The legal definition of battery, according to the Legal Information Institute from Cornell Law School, constitutes the “unlawful application of force directly or indirectly upon another person or their personal belongings, causing bodily injury or offensive contact.”

The Miami-Dade Clerk said Kurtin’s arraignment was scheduled for September 30, according to the report.

Ascend Wellness — a multi-state cannabis operator (MSO) with assets in six U.S. states including Illinois, Michigan, Massachusetts, New Jersey, Ohio, and Pennsylvania — issued a statement following Kurtin’s arrest:

“The company is aware of allegations against CEO, Chairman, and Founder Abner Kurtin regarding a domestic-related misdemeanor. The independent members of the company’s Board of Directors, through its Compensation and Corporate Governance Committee, are conducting an investigation of the matter with the assistance of independent legal counsel, Goodwin Procter, LLP.” — Ascend Wellness statement via press release

“While the company cannot comment on an active investigation, it is treating this matter with the utmost seriousness and will continue to evaluate appropriate steps as more information becomes available,” the statement continued. “The independent members of the board are keenly attuned to the company, its shareholders, and employees, and the management team is focused on ensuring AWH continues to operate effectively during this time.”

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Virginia Maggiore, AIA, Named Principal of RDC

9/12/2022

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LOS ANGELES (JUNE 20, 2022) – Virginia Maggiore, AIA, Named Principal of RDC – Virginia Maggiore, AIA, has been named Principal of RDC, a full-service, award-winning architecture firm. Since joining RDC in 2019, Maggiore has built the firm’s Retail Store Rollout and Planning practice, adding notable retail and cannabis industry clients to the firm’s roster and garnering accolades for her work.

“Virginia is constantly striving for excellence and has been a force multiplier in RDC’s effort to expand our national retail offering. She inspires confidence in clients, colleagues, and staff,” said Brad Williams, AIA, CEO of RDC.

Maggiore is a licensed architect, responsible for developing the in-store experience and customer journey, creative strategy, visual communication, and marketing integration for retail clients. She offers clients nearly 20 years of experience in the retail, wholesale, and international markets where she has successfully developed and implemented retail strategies for global brands. She works in close collaboration across the RDC architecture, interiors, and procurement teams to provide our clients with a detailed brand experience uniquely designed to fit their needs. Her deep retail design roots also inform her experience in cannabis dispensary design and rollout.

Recent representative projects under Maggiore’s direction include multiple locations for retail and cannabis, such as:

  • Jenni Kayne Home Store, SoHo, New York, NY features all the architectural details suited to the city, including lofty ceilings, original hardwood floors and brick work, as well as vintage lighting, British Standard cabinetry, Waterworks fixtures, and shades from Portola Paints. The in-store experience allows customers to shop in ‘real’ living, dining and bedrooms, experiencing the products in an original way.
  • The flagship cannabis dispensary for DTLA’s “Traditional” brand features a vibrant lobby that then transitions customers from the outside and submerges them into a fully saturated, branded environment without yet entering the dispensary. Inside, customers are met with more bright pops of color, round kiosks mimicking the brand’s iconic packaging, a view into the cannabis grow room, and a large-format video wall. The perimeter retail space is segmented to feature rotating partner brands in customizable shops-in-shop.
  • At the Rhone mens activewear store New York, NY, the label worked with RDC to design the brand’s 1,500-square-foot flagship in the Flatiron District at 133 Fifth Avenue. The location features a modern design that evokes movement, using metal and light woods and features furniture from Herman Miller and Design Within Reach. The store is Rhone’s third permanent location in Manhattan and the largest of the three.

For more information on RDC, visit www.rdcollaborative.com.

About RDC
Founded in 1979, RDC is a full-service, award-winning architecture firm dedicated to making everyday places extraordinary. Practice areas include interior design, branding, hospitality, retail, entertainment, workplace, residential, and procurement. Headquartered in Long Beach, CA, the firm has 175 staff members and offices located in Washington DC, Northwest Arkansas, and San Diego CA. For more information, visit: www.rdcollaborative.com.

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Florida Cannabis Legalization Campaign Pays Firm $1M+ to Gather Signatures

9/12/2022

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A cannabis advocacy group in Florida has paid a signature-gathering firm more than $1 million hoping to obtain nearly 900,000 signatures to put a cannabis legalization question on 2024 ballots, WFTV9 reports. The Smart and Safe Florida effort is aimed at letting voters decide on a constitutional amendment during the next presidential election.

The proposed amendment, called “Adult Personal Use of Marijuana” would allow anyone 21 or older “to possess, purchase, or use marijuana products and accessories.” If approved, the amendment language gives the final say on how the industry is structured to the state Legislature. The campaign filed paperwork with the state Division of Elections earlier this month, according to a WPTV report.

Medical cannabis company Trulieve has contributed $5 million toward the effort, according to WPTV.

A March survey on the reforms by Public Policy Polling suggested a majority of Floridians support adult-use legalization. The poll of more than 500 Florida voters found 59% approved of legalization, 31% were opposed, and 10% were unsure.

Florida voters in 2016 passed a constitutional amendment to legalize medical cannabis and, so far, nearly 800,000 patients have been authorized for the program. That poll also found 49% of respondents agreed (23% opposed, 29% unsure) that potency limits – which were enacted last month – serve as a tax on medical cannabis since patients would have to consume more cannabis to get the same effect. The survey also found 61% agreed (20% disagreed and 20% unsure) that limiting THC was “just another way for Tallahassee politicians to try and ignore the will of Florida voters.” The poll also found 77% of Floridians agreed that limiting THC inserted lawmakers into what should be a decision between patients and their doctors.

Following the implementation of the limits, Florida Agriculture Commissioner Nikki Fried called on the state Department of Health and Office of Medical Marijuana to roll back the new rules, describing the changes as “unnecessary, its implementation poorly noticed, and its impacts extremely harmful with hundreds of thousands of patients in Florida no longer able to access their medicine in the quantities they need for efficient treatment as determined by their doctors.”

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Costa Rica’s Hemp Licenses Will Be Free

9/12/2022

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Hemp licenses in Costa Rica will carry no cost under regulations signed into law earlier this month, the Costa Rican News reports. The regulations are the first hemp-related rules approved by President Rodrigo Chaves Robles and by the heads of the Agriculture and Livestock portfolios, Laura Bonilla, and Health, Yoselyn Chacón. 

In a press release outlined by the News, the regulations are applicable to individuals or legal entities that are interested in importing, planting, cultivating, harvesting, post-harvesting, storing, transporting, processing, manufacturing, marketing, importing and exporting hemp derivatives as health, food, and industrial products.

The licenses will be granted for six years and can be renewed for another six years. Licensees will be allowed to acquire seeds, seedlings, cuttings, or any other hemp propagation material, the report says, along with the planting, development, harvest, import, transport, and marketing of hemp plants as raw material for processing.

The regulation will enter into force once it is published in the official newspaper, La Gaceta.

Costa Rican lawmakers passed the hemp law reforms in April after more than three years of legislative effort, according to an Attaché Report sent to the U.S. Department of Agriculture’s Foreign Agricultural Service, which also suggested that officials had hoped to get the first batch of regulations approved by May 8.

Last month, President Rodrigo Chaves said he planned to push for adult-use reforms and would soon unveil the nation’s medical cannabis rules, Tico Times reports. Chaves has not provided further details on what those reforms would look like.

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Florida Ag. Commissioner Wants to Overturn Medical Cannabis Dosage Limits

9/09/2022

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Florida Commissioner of Agriculture and Consumer Services Nikki Fried is calling on the state Department of Health (DOH) and its Office of Medical Marijuana Use (OMMU) to roll back the dosage limits enacted via an emergency rule on August 29.  

During a press conference, Fried called the rule change “unnecessary, its implementation poorly noticed, and its impacts extremely harmful with hundreds of thousands of patients in Florida no longer able to access their medicine in the quantities they need for efficient treatment as determined by their doctors.”    

“This reflects a lack of understanding of medical cannabis by DOH and OMMU at best and is an act of cruelty at worst. We are sending a strong message to the DeSantis Administration to put patients first, protect their access to legal and lifesaving medicine, and roll back these restrictions. I will never stop fighting for our medical cannabis patients and full legalization.” — Fried during a press conference 

In a letter to Dr. Joseph Ladapo, Florida’s Surgeon General, who oversees the OMMU, Fried said she had “grave concerns” over the rule.  

“By limiting patients to purchasing only a maximum of 24,500 milligrams of THC over a 70-day period and a limit of 2.5 ounces of smokable cannabis in a 35-day period, the state is overriding the professional judgment of doctors and endangering the health of patients,” she wrote. “Many patients require the ability to purchase a higher dosage in multiple forms in order to test combinations and find the best balance to treat their particular condition in consultation with their doctor. The state has no business inserting itself into nuanced decisions being made between patients and their health care providers.” 

In the letter, Fried called for officials to overturn the rule and “instead, work to improve the program in a way that puts patients and equity first and that provides patients and providers with a seat at the table when decisions impacting their care are being discussed.”

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New York Official Says Adult-Use Cannabis Sales Won’t Start Until ‘Middle of Next Year’

9/09/2022

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During an event in Yonkers, one of New York’s top cannabis regulators said the state wouldn’t be accepting cannabis industry applications until next year, shifting the anticipated timeline from this fall, Syracuse.com reports. When asked by an audience member when businesses could start processing products for retailers, Office of Cannabis Management Executive Director Chris Alexander responded “the middle of next year.”

“You’ll see regulations come out sooner – in the next two months or so – but middle of next year you’ll see those applications open for cultivation, for processing, and to do the activities you just laid out.”— Alexander via Syracuse.com   

During a public forum in May, Cannabis Control Board Chair Tremaine Wright said adult-use cannabis products could be available from conditional cultivators in the fall but did not offer a firm date at that time. Alexander’s remarks came on August 25, the same day the state opened applications for conditional adult-use retail licenses.   

Brittany Carbone, founder and CEO of TONIC, co-founder of Tricolla Farms, and a board member of the Cannabis Association of New York, told Syracuse.com that she was not happy to hear the news. 

“This makes it a bit more difficult for the conditional licensees to operate confidently,” she said, “and know exactly what to prepare for. … Investors are a bit hesitant to make any moves quite yet prior to the regulations being released.” 

State regulators have already conditionally approved individuals and farms with hemp licenses to grow cannabis for the adult-use market, along with conditional processor licenses and proposed packaging, marketing, and testing rules.

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Campaign Supporting Adult-Use Legalization Launches in Maryland

9/09/2022

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Advocates in Maryland on Thursday launched a campaign backing the November ballot question about legalizing cannabis for adults. The Yes on 4 campaign launched on Thursday with a website and a video. 

“We all need to vote YES to end the war on weed and bring new money for small businesses, education and public services. Maryland is home to three of the top ten counties across the US for the highest marijuana possession incarcerations. Maryland already has a highly successful medical cannabis industry – but not everyone can use this market right now. Now is the time to legalize cannabis for all adults.” — Yes on 4 campaign website.

The campaign is chaired by former National Football League player-turned-cannabis businessman Eugene Monroe.

“Passing Question 4 will put an end to the failed criminalization of cannabis, create a well-regulated legal marijuana market centered around equity, and open up new doors for local entrepreneurs and small business owners,” Monroe says in a statement posted to the campaign website. “I hope every Marylander will vote yes on Question 4 this November.” 

Putting the issue on November ballots was approved in April by state lawmakers. If the measure passes, Marylanders who are at least 21 will be able to legally possess up to 1.5 ounces of cannabis and grow two cannabis plants, beginning July 1, 2023. 

According to election finance data outlined by the Washington Post, the campaign is being initially funded primarily by medical cannabis company Trulieve, which donated $50,000. Blended Public Affairs, the only other donor listed, gave $100.  

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Culinary Delights: Cannabis Edibles for the Foodies

9/08/2022

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There were days prior to legalization where after getting baked with friends we’d sit around eating our chosen snacks and chatting about how cool it would be to have a Dorito… but with weed. Fast-forward a decade and adult-use laws have been established long enough for chefs and mainstream product manufacturers to start entering the market — and with them, the minds and tools to create those interesting edibles we used to only dream of.

These culinary delights intrigue me both as a long-time cannabis connoisseur and a person who is deeply enchanted by inventive and delicious approaches in the kitchen. Over the last months, I have been sampling edibles that venture past the highly coveted gummy candy into new territories, whether a product that is rarely spotted on shelves or ingredients that are mindfully chosen.

Grab your napkin and take a seat, I want to introduce you to some of my favorite morsels on the market.

TSUMo Snacks Salsa Verde Chips

10 mg in around 7 chips // $16 for 100 mg bag
Noteworthy Ingredients: Chips!
What makes it special: There aren’t many (if any other) evenly dosed corn chips on the market, and the salsa verde and zesty ranch flavors are novel, reminiscent of beloved non-infused snacks.

The novelty! Chips! The danger, chips. I sat with the back of Salsa verde chips open knowing full well that sometimes I house a family bag of chips without thinking. That feeling of imminent danger of not trusting my own fingers to stop bringing chips up to my mouth felt dangerous and exciting, and it dissipated once I counted out my 7 chips and safely tucked the bag away. The drama, right? Anyways, these chips are delicious and remind me of the Salsitas I used to get at the corner store and for me, delivered a classic edible high. The flavor is prominent but not overwhelming and the chips are fresh and crisp. After trying them myself I can see why they won second place in the Emerald Cup for Savory Edibles this year.

Cosmic View Suns Lollies

3.6 mg THC & 6.4 mg CBD // $9 per Lolly
Noteworthy Ingredients: Roasted meyer lemon, Dark Horse adaptogenic furikake, and madagascar vanilla bean
What makes it special: Mindful dosage, intentional & novel ingredients, good price point, intriguing mouthfeel
Input: Moon Made Farms Serpentine flower rosin is cross between Green Crack (Skunk #1 x California Orange) and an unknown CBD cultivar, creating an uplifting, playful sativa blend.

These lollies are just the right consistency, I’ve had some artisan lolly pops that are a bit chewy but Cosmic View’s recipe is just right for me. There is a texture in the lolly that reminded me that someone hand-picked these ingredients, a tactile quality that I found quite pleasant. I chose to enjoy the Suns lolly in the midst of a wicked bad headache, and as I usually find with hard candy, I had immediate relief. The mindful dosing created a mellow, comfy feeling for me, just what I needed. When I saw that the product retails for $9 in California dispensaries with fresh intentional ingredients I was sold that this is definitely one that everyone should try.

Hervé Macarons

10 mg per macaroon // $20 for a 3-pack
Noteworthy Ingredients: Raspberry
What makes it special: The macaron is wonderfully baked with a crisp shell surrounding a soft meringue complemented by rich vegan buttercream.
Input: High Valley Ridge Farms live resin from Costa (CA) & Aether gardens concentrates (NV)

I had a delightful experience eating these macarons. I tried both the birthday cake and raspberry flavors and enjoyed both. The profile of red, white and blue sprinkled Birthday cake is ideal for someone who loves to eat sweets. The Raspberry flavor, which are a soft red brushed in gold, is for the dessert eater who isn’t a fan of super sweet but likes dessert. The trio of cookies come packaged in a sturdy box with a pull tab that slides the tray of macarons out. While it may not be super sustainable packaging, it’s luxe and makes Hervé macarons a good choice to bring as a host gift or special treat for a night with friends.

Mesobis Mango con Chile Gomitas

10 mg per gomita // $15 for a 10-pack
Noteworthy Ingredients: Chile, mango
What makes it special: This is one of three Mesobis flavors inspired by beloved treats from the Mesoamerican region like chile mango, tamarind chamoy, and açaí.

This complex sweet and spicy flavor combination is beloved as a sweet treat in Mexico, and now everywhere. The Mesobis founders wanted to honor that beloved candy with this flavor of Gomita, it is meant to serve as a little taste of home for Mexican immigrants in California– where the infused candies are available. There are many gummies, and this one made the list because this flavor and the other flavors are perfectly balanced which took lots of testing. They are also shaped like a Mesoamerican pyramid and don’t melt out of shape, another feat to be celebrated. It’s simply a well-executed gummy in memory invoking flavors that delight and impress. If I was doing rankings I’d say ten out of ten.

Kiva x Yeastie Boys Everything Bagel Seasoning Munchies Bar

100 mg per bar // $15 each
Noteworthy Ingredients: Yeastie Boys Everything Bagel Seasoning
What makes it special: Effortlessly executed sweet and savory pairing with the help of a collab with an established food truck.

Now I’m an honest person, so you should know this is the only edible on the list that I haven’t personally tried. But I ate quite a few Kiva chocolate bars while working as a budtender back in the medical days in San Francisco. I enjoyed a bar of their delicate chocolate every payday. Back then, a decade ago mind you, the chocolate was rich and melted in your mouth. I can only assume it’s improved since then. A decade ago they were also playing with elevated flavor combinations, so I’m not surprised that they’ve continued evolving with complex pairings like everything bagel seasoning and dark chocolate. The limited edition bar dropped in Spring 2022, so interested Californians should look out for any left on shelves.

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Illinois Has Sold $1B Worth of Cannabis So Far This Year

9/08/2022

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Illinois sold more than $1 billion in adult-use cannabis by the end of August, according to Department of Financial and Professional Regulation data outlined by  Cannabis Business Times. The $1,015,700,115.70 in total sales represents a 16% year-over-year increase from August 2021 — last year, Illinois did not reach the $1 billion sales mark until October, the report says.

Sales peaked in July at $135.7 million, possibly due to the month having five weekends this year, but fell to $129 million in August, a 4.6% decrease that was expected based on the previous year’s data. Over $41 million of sales were to out-of-state residents, holding steady at 32% of overall receipts, the report says. 

The state’s cannabis tax revenue also jumped from $297.7 million in 2020 to $445.3 million in 2021, a 50% increase, and 25% of those funds will go to communities most affected by the drug war. 

Earlier this month, Illinois completed its first round of social-equity licensing, granting a total of 185 conditional adult-use licenses. In a statement after the licenses were awarded, Gov. JB Pritzker (D) said the state is “leading the way in cannabis legalization that is equity-centered.”

“With all 185 conditional licenses now in the hands of social-equity applicants, we have reached a tremendous milestone,” he said. “Now, we look forward to getting these businesses up and running, creating jobs in the communities most harmed by the failed drug war, and cementing ownership in Illinois’ cannabis industry as the most diverse in the nation.”

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New Jersey Issued 50+ Cannabis Business Citations from January 2020 to April 2022

9/08/2022

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From January 2020 to mid-April 2022, the New Jersey Cannabis Regulatory Commission (CRC) issued 54 citations to seven cannabis companies, Bloomberg News reports. The alleged violations included staff using fraudulent security access cards, to workers regularly failing to enter patient purchases into the medical cannabis registry. 

Some of the companies that received the citations – including Verano Holdings Corp., Curaleaf Holdings Inc., and Ascend Wellness Holdings Inc. – still received approval to open retail dispensaries in the state.  

In an email, Toni-Anne Blake, a spokeswoman for the CRC, told Bloomberg that all of the violations had been corrected.  

“Our goal for issuing a violation is to correct the action that led to a violation.” — Blake via Bloomberg 

Verano’s Zen Leaf, which has three dispensaries in the state, was cited 20 times by regulators, including selling cannabis to people who were not registered patients with the state and the use of “fraudulent security access cards,” according to CRC documents obtained by Bloomberg. In April 2021, an investigator ordered the destruction of 127 pounds of inventory at Verano because some “may have been swept up from the floor” and contaminated, the report says.  

Verano spokeswoman Grace Bondy told Bloomberg that the company was “required to follow an unmatched level of regulation and compliance” and had resolved any violations cited by New Jersey regulators.  

“We continue to regularly review all of our operating procedures and protocols to ensure we are following all applicable laws and regulations in the states in which we operate,” she said in the report.

In March 2021, a review of Ascend inventory found that 50 jars of cannabis, totaling about 6 ounces, were missing and hadn’t been reported immediately to law enforcement, as rules required, according to the documents outlined by Bloomberg. Regulators said the company would be in compliance if it submitted an explanation and a plan to prevent a recurrence. 

On 10 occasions, Curaleaf was cited for alleged violations involving security, labeling, and mold. 

In a statement, Curaleaf told Bloomberg that the citations demonstrate “that the legalized market is working in New Jersey.” 

“We work quickly to remediate any issues and update our standard processes and procedures to achieve the highest level of service, quality, and trust that our patients and consumers deserve,” Curaleaf said in the statement. “Our business depends on it.”   

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Minnesota State Fair Poll Finds Majority Support for Cannabis Legalization

9/08/2022

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A majority of attendees surveyed at the 2022 Minnesota State Fair supported legalizing cannabis for adult use. The poll, conducted by the state House of Representatives, found that 61.4% of respondents backed the reforms, with 30.2% opposed, and 8.4% undecided or unsure.  

The poll conducted at the state fair last year found that 58.3% supported cannabis legalization with 34.1% opposed.     

The poll was conducted by the nonpartisan House Public Information Services Office and is considered an informal, unscientific survey of issues discussed in prior legislative sessions that may again be topics of discussion in 2023. This year’s poll was taken by 7,110 fairgoers, an increase from the 5,231 people who took the poll in 2021. 

The poll results come a week after Scott Jensen, a former Republican Minnesota state senator and current GOP gubernatorial nominee, said he thinks Minnesota should consider decriminalizing “trivial amounts” of cannabis and should let voters decide via the ballot whether to adopt adult-use legalization reforms. In 2019, Jensen sponsored an unsuccessful bipartisan legalization bill. 

His opponent, incumbent Gov. Tim Walz (D), in his supplemental budget proposal earlier this year called for the state to legalize cannabis and set aside $25 million to create a Cannabis Management Office to oversee the program. 

Last year, the Minnesota House passed a cannabis legalization bill but the GOP-controlled Senate ultimately let the legislation die without consideration on the chamber floor. At that time, Senate Majority Leader Paul Gazelka (R) said lawmakers didn’t think it was a “good idea” to legalize cannabis “for fun.” 

Minnesota lawmakers, though, did approve a bill to legalize small quantities of THC in hemp-derived food and beverage products. Walz signed that bill into law in June and the new rules took effect on July 4.

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Massachusetts College Partners With Green Flower on Cannabis Education Courses

9/08/2022

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Worcester Polytechnic Institute (WPI) is partnering with Green Flower to offer four cannabis certifications, NBC News Boston reports. It is the first partnership between the cannabis education company and a Massachusetts college.

Green Flower CEO Max Simon told NBC News Boston that the company is excited about the partnership because Massachusetts “is really one of the best in the country in terms of economic growth, in terms of career opportunity and in terms of just acceptance within the space.”

“The Massachusetts market is growing so fast from a cannabis perspective and that really needs well-trained people to be able to supply the industry with high-quality talent.” — Simon to NBC News Boston 

The four programs offered through WPI are cannabis healthcare and medicine; cannabis law and policy; the business of cannabis; and cannabis agriculture and horticulture.

Anita Mattson, WPI’s head of Chemistry and Biochemistry, told NBC News Boston that the college would not be dealing with THC-rich cannabis on campus – which would likely put the school’s federal funding in jeopardy – rather, students would work with hemp plants, which are federally legal.

“But all of the skills and techniques people will be learning on the hemp is exactly the same you would need for any aspect of the cannabis industry,” she said in the report.

The classes cost $2,950 each and run for six months.

According to the Green Flower website, the company now partners with 18 colleges and universities throughout the U.S.

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Emily Gant: The Evolution of Cannabis Industry Regulations

9/07/2022

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As cannabis legalization sweeps the U.S., regulators must consider public safety as they draft policy and regulations around the growing industry. When Washington state legalized adult-use cannabis in 2012, regulators chose to model cannabis laws very closely after the state’s alcohol beverage laws. This has shaped an industry that struggles to grow despite being one of the country’s first and oldest legal cannabis markets.

Emily Gant is an attorney with Foster Garvey PC and has been practicing alcohol law in The Evergreen State since before the state’s cannabis laws were drafted — now, she is well versed in the legal landscape of both industries. In this interview, we learn about her work advising cannabis clients, the complications of regulating cannabis from a policymaker’s point of view, her advice for students and new lawyers pursuing a career in cannabis law, and more.

Scroll on for the full interview:

Ganjapreneur: Why did you decide to become a lawyer? In what ways are you fulfilling those goals now?

Emily Gant: When my children were small, they would always ask what I did for a living. It was hard for toddlers to understand all the technicalities of lawyering, so instead of explaining the “ins and outs” of my practice, my response evolved to say, “I help people accomplish their goals.” This response succinctly expressed the main reason I became a lawyer, namely, to help people.

Wineries, distilleries, breweries and cannabis companies are small businesses just like any other small business, but there is a regulatory piece to the legal work that I find fascinating. I enjoy being the “consigliere” for these businesses – getting to know their company and its dynamics, understanding their challenges, becoming a trusted advisor and using my knowledge of the industry to help them achieve their goals.

When did you begin advising clients in the cannabis industry?

I was an alcohol beverage attorney long before Washington state voters passed Initiative 502 in 2012. My foray into the cannabis industry began shortly thereafter.

The cannabis laws were – and still are – remarkably similar to Washington state alcohol laws, like the disclosure and vetting process, rules prohibiting cross-tier ownership and trade practice considerations. Given my background as an alcohol beverage attorney, clients started contacting me for cannabis-related advice. It was a very natural transition for me to enter into the cannabis space.

How is your work in cannabis business similar to your work in alcohol? How does each space differ?

Those drafting I-502 leaned heavily on Washington state’s alcohol laws as a model. Much of the language is virtually identical – some of the regulation numbers even match.

As an example, Washington’s alcohol laws are based on a Tied House model. This means that a non-retailer (like wineries, breweries, distilleries, wholesalers and importers) can’t induce a retailer (like restaurants, bars, grocery stores and liquor stores) to buy its product through improper means, like gifts, kickbacks, slotting fees, special discounts, etc. Washington also uses a Tied House model for cannabis. Many newly minted members of the cannabis industry were shocked when I told them that they couldn’t pay a retailer for shelf space or a prime spot on an end-cap. Marketing strategies that may work outside the cannabis world are not available here, given the Tied House laws.

Turning to differences, the Washington alcohol beverage industry has had more time to evolve. As one example of a liquor law that has changed over time, there used to be a strict rule against cross-tier ownership, So, someone owning a winery could not have a direct or indirect interest in a restaurant, and vice versa. Laws have changed, such that a Washington non-retail alcohol beverage licensee can hold an interest in a retail alcohol beverage licensee, under certain circumstances.

The same is not currently true for cross-tier ownership with cannabis licensees. This makes it incredibly important for Washington cannabis businesses to engage in due diligence before bringing on a new investor or seeking a successful exit. Time will tell whether the cannabis cross-tier ownership laws will evolve over time, too.

What considerations should cannabis brands take when developing products using both cannabis and alcohol?

In the current legal landscape, it is difficult to mix cannabis and alcohol together in the same product in a compliant manner. The federal Alcohol and Tobacco Tax and Trade Bureau (TTB) will not approve any formulas or labels for alcohol beverage products containing controlled substances under federal law, including cannabis. For many products, no TTB-approved label equals no sales. Further, many states expressly prohibit the production or sale of products containing both cannabis and alcohol, or the presence of cannabis at a liquor-licensed premises. Even if you could somehow get a TTB-approved label, you would still be hard-pressed to produce the cannabis-containing alcohol beverage product in a compliant manner under state law.

However, as they look to the possible federal legalization of cannabis-containing products, state regulators and the industry are starting to discuss the potential of mixing cannabis and alcohol in the same product. They are grappling with numerous questions: Should the same state agency govern both cannabis and alcohol beverages, or should authority fall to separate agencies? Should states base their cannabis laws on their alcohol beverage laws like Washington, or is it better to regulate the two substances differently? Is the Tied House model the right one? Could a licensee create both alcohol beverage and cannabis products at the same licensed premises, using the same equipment? Will states allow for consumption of cannabis products at a liquor-licensed premises? If so, what are best practices in training staff to recognize over-service, when a patron is consuming both alcohol and cannabis?

Why are regulators concerned with the combination of alcohol and cannabis – from the standpoint of combining the two products and to social use laws prohibiting venues from serving alcohol and cannabis in the same space?

Regulators’ primary concern is often public safety. Companies that work within the on-premises liquor space – like bars and restaurants – are legally required to train their employees on how to identify when someone is intoxicated from alcohol. Currently, this type of knowledge and training is not readily available for cannabis, especially when combined with alcohol. Without this awareness, many state regulators are concerned about the public safety risk and are not comfortable allowing venues to serve both alcohol and cannabis.

Washington state liquor regulators absorbed cannabis regulation responsibilities when the state passed legalization — could you speak to how this has impacted the development and success of the industry in the state?

The same agency oversees both cannabis and alcohol in the state, meaning the agency understands the regulatory context and can lean on its depth and knowledge from the alcohol space as it enacts cannabis regulations.

Other states – like California, for example – have separate agencies governing liquor and cannabis. As more states legalize adult-use cannabis, they will need to make decisions about the best model for their jurisdiction.

What is the three-tier alcohol sales regime and how is it evolving? What opportunities will that bring for cannabis entrepreneurs?

The three tiers of the alcohol beverage industry are suppliers (wineries, breweries, distilleries and the like), the middle tier (wholesalers and importers) and retailers (like restaurants, bars, hotels, grocery stores and liquor stores).

The three tiers are rooted in history. During Prohibition, the Mob controlled all three tiers: it distilled the whiskey (supplier), it transported the whiskey (wholesaler) and it owned the bars in which the whiskey was sold (retailer). The Mob was vertically integrated, controlling “grain to sale.” This meant that the price of whiskey went down, consumption of whiskey went up, and consumers had but one whiskey to choose from. Further, there were significant public safety issues associated with a criminal organization running an alcohol beverage business. This demonstrated the “perils” of the Tied House, like marketplace domination, undue influence, physical or economic threats to competitors, limits on consumer choice and public health and safety concerns.

Now, the federal government and virtually every state has a version of the Tied House laws to combat these issues.

As noted, some states use a Tied House model for cannabis, like Washington. Others, like Oregon, do not. As additional states legalize adult-use cannabis, those drafting the laws can learn from early adopters (like Colorado, Washington and Oregon) to determine the best path for their state.

You mentioned that the three-tiered system reduces the possibility of bad players entering the market, but some states do allow vertical integration from seed to sale. Are there other ways that these states are reducing the risk of criminal organizations attempting to control the market?

There are various means to limit bad actors’ access to the legal cannabis market, with the most common found in the application process. Using Washington State as an example, any person or entity with ownership in or control over the applicant entity must provide extensive background information, submit fingerprints and undergo a “source of funds” analysis. (For those unfamiliar with the term, an applicant demonstrates the “source of funds” by showing where they got the money. Let’s say an applicant contributed $500,000 to the company and pulled $300,000 from her retirement account and $200,000 from a money market account. Under current Washington law, she would need to provide statements from both the retirement and money market account to demonstrate her source of funds.) State cannabis agencies also focus on seed-to-sale traceability, in an effort to limit diversion of legal cannabis product into the illicit market.

When is the right time for a cannabis entrepreneur to bring in legal representation?

While it is helpful to have a trusted legal advisor for any number of big and small questions, many cannabis companies need to keep a close watch on their legal spend. If nothing else, it’s useful to consult with knowledgeable legal counsel during the company’s “pinch points,” or periods of growth or change.

Often, the first “pinch point” is entity formation. Cannabis companies should structure the entity in a compliant, smart way that meets regulatory requirements, investors’ demands and operational needs. Then, it should enter into governing documents, like an LLC Operating Agreement or a Shareholder Agreement. That way, all owners know the “rules of the game” at the start of the relationship, like decision-making, distributions of profits and losses, dispute resolution and the addition or removal of owners. It’s crucial to engage knowledgeable counsel who can address entity formation and governance from regulatory, tax and liability perspectives, to ensure that the company starts off on strong footing.

Other “pinch points” happen later in the company’s life cycle. If a cannabis company is moving into a new facility, it may be wise for an attorney to review the lease. If a company wants to move into a new market through an IP license, counsel should likely review that agreement. And if the company is looking for an exit, it should consult with skilled M&A counsel attuned to the cannabis regulatory considerations.

Do you have advice for a student who would like to work in cannabis law?

I received some great advice from a mentor early in my career: Don’t just dabble in the industry. To find success, you need to identify a great mentor, expand your substantive skills, develop your industry knowledge, and build regulatory contacts. That will not occur if you merely “dip your toe” into the cannabis space with a project or two. It’s important to build your experience from both risk management and competency perspectives, and work to flex those muscles every day.

Thank you to Emily for teaching us and sharing her expertise — if you’d like to learn more about Foster Garvey PC check out foster.com.

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