Florida Judge Criticizes Failure to License More Cannabis Businesses as Required Under 2017 Law

A Florida appeals court judge last week criticized state officials over their failure to issue new medical cannabis licenses as required under a 2017 law, News Service of Florida reports. First District Court of Appeals Judge Ross Bilbrey said that applicants are “understandably frustrated with the ongoing failure of the Department of Health to open the application window and issue Medical Marijuana Treatment Center (MMTC) licenses as required by the Florida Constitution.” 

Under the 2017 law, new licenses are supposed to be awarded as the number of medical cannabis patients increases. The state now has more than 700,000 registered patients and should have issued 22 more licenses, which would double the number of medical cannabis operators in the state. However, since taking office in 2019, Republican Gov. Ron DeSantis’ administration has not moved forward with issuing new licenses.     

“Almost five years after the emergency rule was issued, the MMTC license application window remains closed.” — Bilbrey, during the hearing, via News Service of Florida  

Louise St. Laurent, the Department of Health’s general counsel, said the agency wants “to open that window” and “have wanted to for three years” but have been forced to wait until the outcome of a separate lawsuit filed by Florigrown challenging the 2017 law.  

Bilbrey noted that the Florida Supreme Court ruled against Florigrown and upheld the 2017 law more than a year ago “and the MMTC license application window remains closed.”   

“I respectfully suggest that the department comply with its representations at the MedPure oral argument – either open the application window referenced in the emergency rule or promulgate a superseding rule allowing for MMTC license applications,” Bilbrey wrote. “Otherwise, it may be necessary for a potential licensee to ‘seek judicial relief to compel compliance with the department’s constitutional duties.’”  

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National Hemp Growers Cooperative Partners with Troy University on Hemp Plastic Project

The National Hemp Growers Cooperative (NHGC) earlier this month entered into an agreement with Alabama’s Troy University on a project aimed at using hemp fiber to create biodegradable plastics. The partnership will see the co-op work with the college’s Center for Materials and Manufacturing Sciences.  

During the signing of the Memorandum of Understanding on September 8, Dr. Jack Hawkins, Jr. described hemp plastics innovation as, “Not only is it good for the economy, but … also good for our world.”

“When you think about the advantage of hemp-based bioplastic, it makes for a better environment. It’s biodegradable, it’s a renewable resource and it’s tough. … This is a step in a major initiative that will grow this University in an exciting new way. We look forward to what the National Hemp Growers Cooperative can mean to this partnership.” — Hawkins, Jr. in a statement 

The NHGC is a management company headquartered in Jackson, Mississippi that connects growers from across the United States. Nick Walters, managing partner of the NHGC, called the partnership “the beginning of hopefully a long-lasting relationship.”  

“The use of bio-based plastics is full of potential, in particular for the U.S. automotive industry,” he said in a statement. “Industrial hemp is already proven to be an excellent source for bio-based plastics, but we need to create even more uses by blending with recyclable plastics. We can think of no better partner than Troy University.” 

Dr. Steven Taylor, dean of the College of Arts and Sciences, said the partnership encompasses the goal of the Center: to offer solutions to real-world problems. 

“It’s not so much about what the NHGC leadership needs, it’s what their members might need. Their goal is to try to help the farmers grow the product and have a market for the product, therefore they need products to make,” he said in a statement. “This also gives us the possibility of multiple partners, a place to start and branch out from. It’s the first step toward the Center having real connectivity outside of the University and may give us synergy beyond what projects we alone can generate.” 

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Arkansas Secretary of State Rules Adult Use Measure Insufficient

Arkansas’ Secretary of State John Thurston has declared the state’s proposed ballot measure to legalize adult-use cannabis is “insufficient” to appear before voters this November, KPVI reports. Thurston’s declaration argues the proposed Constitutional amendment is not valid because the State Board of Election Commissioners (SBEC) failed to certify the popular name and ballot title for the measure and, per Arkansas Code Annotated 7-9-111, if SBEC does not certify the measure’s title, he must rule it insufficient, the report says.

The SBEC rejected the initiative’s title and popular name in early August but activists pushed back, filing an appeal with the state Supreme Court. Attorney Steve Lancaster — who represents the group behind the measure, Responsible Growth Arkansas — said the board’s request would make the title too long.

“The type of detail that the board expected, or demanded in this case, would make our ballot title thousands and thousands of words long. That just simply is not workable for a ballot.” — Lancaster via the Associated Press

A week later, the Court gave conditional approval for the measure to appear on the November ballot while it looked into the SBEC’s denial but did not rule whether or not the vote would actually matter. On September 13, the Court issued a writ of mandamus requiring the secretary of state to decide the sufficiency of the measure, Arkansas Online reports. The secretary of state was ordered to file proof of the decision by Wednesday, September 14, the report said.

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Montana Looks to Extend Cannabis License Moratorium

Cannabis industry trade groups in Montana have put their support behind lawmakers’ efforts to extend the state’s moratorium on new adult-use cannabis shops until 2025, the Helena Independent Record reports. The legislation may have a dual effect in protecting legacy cannabis operators who do not want an over-saturated market and mollifying conservative lawmakers who do not want to see more cannabis businesses in the state.

The proposal is in an interim legislative committee and will need to pass the full legislature, then be signed by the governor, the Record notes.

The effort would be an extension of an 18-month moratorium put in place in 2021 to regulate Montana‘s adult-use cannabis system. That moratorium was an extension of a one-year hold on new cannabis shops that had been part of the state’s 2020 legalization ballot measure and which was intended to protect existing cannabis operators while they figure out the market and get settled before large cannabis corporations enter the space.

State Sen. Jason Ellsworth (R), testifying at the Senate Economic Affairs Committee, said, “We’re a year and a half into this program. This allows us more time to see how these changes take effect.” He added he does not think the state should issue any more cannabis licenses, the Record points out.

State Sen. Jason Ellsworth, testifying at the Senate Economic Affairs Committee, said he does not think the state should issue any more cannabis licenses.

“We’re a year and a half into this program. This allows us more time to see how these changes take effect.” — Ellsworth, in his testimony

JD “Pepper” Petersen, President of the Montana Cannabis Guild, said local jurisdictions are still navigating the new regulations. Peterson believes if the moratorium is not extended, out-of-state cannabis firms with “large, powerful interests with teams of lawyers” could influence how the Montana adult-use cannabis system moves forward.

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New York Lawmakers Send Letter to NYC Mayor Urging Him to ‘Move Swiftly’ Against Unregulated Cannabis Sales

New York lawmakers on September 9 sent a letter to New York City Mayor Eric Adams (D) urging him to clamp down on illegal cannabis sales. The letter describes the businesses as “unscrupulous entities” that “have taken advantage of New Yorkers’ and visitors’ confusion about the law to open dozens of illicit marijuana shops and trucks throughout the city.”

The letter claims that state Sen. Brad Hoylman’s staff had identified more than two dozen storefronts or mobile stores in his district “that were purporting to sell cannabis to the public as if they had a valid license to do so.”  

“While adult use and possession of cannabis is now legal, it remains illegal to sell cannabis without a license, and no person or entity has been awarded a recreational license to sell in New York State. … These stores are deceptive to consumers, hazardous to public health, cheating on their taxes, undermining the State’s equity-based and legal cannabis rollout, and have little incentive to inspect IDs to ensure they are not selling to minors.” — Sen. Hoylman, Sen. Dick Gottfried, NYC Council Member Erik Bottcher in the letter 

In mid-August, the New York City Police Department seized 19 vehicles that were owned by individuals accused of selling cannabis in Times Square and officers issued six criminal court summonses.   

In June, Adams urged no “heavy-handedness” in the enforcement of gifting or unlicensed cannabis sales in the city while the state moves toward regulated sales.  

The letter asks Adams “to move swiftly in stopping these brazen businesses from selling unregulated products.” 

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First Pro Athlete Granted Therapeutic Use Exemption for Medical Cannabis Dies from Cancer

Elias Theodorou, a mixed martial arts fighter and cannabis advocate, died on Sunday of liver cancer, Yahoo Sports reports. He was 34 years old. The black belt in Brazilian Jiu-Jitsu had reportedly only shared the diagnosis with those close to him. 

On Feb. 19, 2020, Theodorou became the first professional athlete to receive a therapeutic use exemption for medical cannabis use when he was granted it by the British Columbia Athletic Commission. He was again granted the exemption in May 2021. 

Theodorou made his Ultimate Fighting Championship (UFC) debut on April 16, 2014, in a victory against Sheldon Wescott in “The Ultimate Fighter Nations Finale.” His UFC record was 8-3 while his overall MMA record was 19-3. His last fight was on Dec. 18, 2021, against Bryan Baker, which he won. 

Theodorou also served as the “ring boy” for the all-female Invicta Fighting Championship. 

“Our sincere condolences to his friends and family. Elias was truly a kind, humble and charismatic personality who will be missed greatly by all.” — Invicta via Twitter  

Theodorou was born May 31, 1988, in Mississauga, Ontario, Canada. He appeared on the third season of “The Amazing Race Canada,” with his then-girlfriend, Max Altamuro. His motto on the show was, “Don’t look dumb on TV and don’t die.” 

He had a Bachelor of Arts from Humber College in Toronto in Creative Advertising and also worked as a stuntman, actor, and producer. 

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Shane Pennington: Suing the DEA to Unlock Cannabis Research

For decades, cannabis research in the U.S. was hindered by steep federal requirements, foot-dragging enforcement agencies, and an archaic rule limiting the source of research-grade cannabis to just one cultivator in Mississippi. But thanks to a lawsuit against the Drug Enforcement Administration (DEA) by Dr. Sue Sisley MD, a doctor who spent years trying to get federal approval for her study that sought to investigate the therapeutic effects of cannabis for veterans with PTSD, the path for real cannabis research has never been more clear.

Shane Pennington was the attorney who worked pro bono with Dr. Sisley to see that lawsuit to fruition. In this podcast interview, our host TG Branfalt returns to discuss those developments with Shane as well as other significant rulings. Shane also discusses his background before joining the cannabis cause, his current work with Vicente Sederberg LLP, his advice for lawyers or law students who are interested in cannabis, and more.

You can listen to the full interview via the player below, or keep scrolling down to find a full transcript.


Listen to the podcast:


Read the transcript:

Kevin Lance Murray: This episode of the Ganjapreneur Podcast is brought to you by The Sesh, a new podcast from the Outlaw Report, the essential news source for cannabis politics, business, and culture in the Mid-Atlantic region. I’m Kevin Lance Murray, host of The Sesh, and you can listen to all our episodes on Apple Podcast, Spotify, or by visiting the outlawreport.com/podcast.

TG Branfalt: Hey, there. I’m your host TG Branfalt and thank you for listening to the ganjapreneur.com podcast where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists and industry stakeholders. It’s been a long time since I’ve hosted an episode of the podcast, but recently I had the opportunity to interview Shane Pennington, the lead council for New York-based Vicente Sederberg LLP, which is a cannabis-focused legal practice, about a letter that he had written to the DEA that sort of sparked this controversy about seeds. But before we get into that, how you doing, Shane?

Shane Pennington: Doing great. Thanks for having me.

TG Branfalt: It’s a pleasure. Like I said, we had spoken about the seeds issue a couple of weeks ago, and we started sort of jawing about your history and how you got into the space. And I was really fascinated by that. And so I was like, “Let me host another podcast and get this on record.” So let’s start with you, man. What is your background?

Shane Pennington: Yeah, so I graduated law school in 2010 and went very kind of square route for several years, that I clerked for several federal judges, had a above top secret clearance with the federal government where I was doing FISA, which is like Foreign Intelligence Surveillance Act stuff in DC, and then went and joined a Supreme Court practice of a big law firm in Houston, where I’m originally from. And after several years of doing Supreme Court cases for companies like Halliburton and Valero and that kind of thing, I decided… I got offered this pro bono gig to help a scientist named Dr. Sue Sisley try to get her application to grow cannabis for research out of a delay hold at DEA. So it was kind of just stuck and DEA wasn’t getting back to her. And I knew nothing about cannabis policy, I knew nothing about the Controlled Substances Act, I had zero background. I mean, my dad’s a Methodist minister. I grew up very straight laced.

And there was no judgment, I’m actually kind of a libertarian politically. So I had no judgment, but just my life, it had just had never been an issue for me. But since what Dr. Sisley was doing was for vets, she was trying to research cannabis for veterans suffering from treatment resistant PTSD and chronic pain, I thought, “Well, I’ll try to help her,” and dug into it and ended up beating the DEA in a series of lawsuits from 2019 to 2021. And now she has a license to grow her own cannabis and her studies are going forward. And in the process of doing all of that, I became obsessed with… I mean, learned all about it, realized how meaningful the work was and so I was like, “Man, these cases for Valero and Halliburton just aren’t as interesting or as meaningful. I mean, to me.” And so I left the big firm and came and joined Vicente Sederberg and now do impact litigation for cannabis reform full-time.

TG Branfalt: So you say you had no experience in cannabis, what in your background did you draw from most to sort of enter this space or get really acquainted with it?

Shane Pennington: That’s a great question. So turns out cannabis law, and this is kind of nerdy, but I mean, it’s not really its own thing. People think of it as cannabis law, but it’s not. It’s actually administrative law because administrative law is the law of agencies, it’s how agencies regulate people. So your car is regulated by the Environmental Protection Agency, the food you eat is the USDA, the Department of Agriculture and so forth, your taxes are by the Internal Revenue Service, which is a federal agency, right? And so I specialized in suing those federal agencies on behalf of regulated parties, like Halliburton often has to deal with the EPA and the SEC and all of this. And even pharmaceutical companies, I would help them as well with FDA and FTC and all these different agencies.

That’s what I specialize in, it’s a very nerdy, very nuanced, very complex area of law. And it turns out that cannabis is governed by federal agencies, the Drug Enforcement Administration, the Food and Drug Administration, Alcohol Tobacco Firearms, Customs Border Protection, which is Homeland Security. So you just go down the list and I was like, “Man, that’s right up my alley.” Now the laws are different for each regulated industry, but it turns out that I was a specialist in exactly what these substances, the laws that govern them, and so when I got involved in it, even though I wasn’t familiar with the particular regulations and so forth, I was very, very, very prepared to sue the DEA. And that’s why… DEA’s not used to getting sued like that. I mean, I guess they get sued a lot, but it’s no offense to people who are practicing in this space, it’s just that I’m a specialist in this.

Most people who get a cannabis case are the ex-prosecutor or the guy from some local Bar Association who takes a traffic ticket case and then they do the best that they can with it and they… Look at what they do, they kick the shit out of me, but this is what I specialize in and I don’t think DEA was used to getting fastballs coming over the plate like that and so we got a series of quick victories. And I should say, I should add quickly, that I wasn’t doing this alone I had a lot of help from a lot of different people, but the point is it was really exhilarating to get to apply skills that I’d been using on behalf of refiners and Fortune 500 pharmaceutical companies to help a scientist struggling to do research for vets.

TG Branfalt: Is that why you made the switch, because to you it’s a bit more… I don’t know, friendly?

Shane Pennington: I mean, it’s a lot more meaningful to me and I don’t mean to say it’s not meaningful to help big companies, it’s just that there’s so many lawyers. I knew when I left the firm I was at, I was at a firm called Baker Botts, which is a great big Am Law 100 law firm, it’s a great law firm, great people, very, very, very talented lawyers there. And I went to another law firm called Yetter Coleman, which is a top boutique firm, it’s a few lawyers and they’re all very, very talented, very well compensated too and a lot of they’re all still my good friends. And look, the work they’re doing is tip of the spear of legal work, no doubt about it. But I knew when I left, there would be 20 very talented lawyers there to fill my spot, you know what I mean? Harvard and University of Chicago, et cetera, are going to keep pumping out lawyers and they’re going to keep filling those spots.

Whereas there was nobody really doing this work, that level of work, in this space because the federal government hadn’t been enforcing the law. So there’s no demand for it. Everybody was trying to avoid the federal regulators, not engage them. But Sue Sicily was this exception, because she’s this scientist who’s trying to do everything by the book. And she was getting stonewalled by the federal agency. And they’re not used to having people fight back against them cause nobody wants to screw with the DEA. But under these particular circumstances, we definitely did want to throw down and we did. And that was very meaningful. I felt like I was doing something that nobody else was doing at this particular moment in history and with federal legalization around the corner. And of course it’s a bigger corner than I thought at the time, it’s taken longer than I realized when I came in as a newbie.

Yeah. But I mean, like I said, I didn’t know that much about the politics. Anyway, I knew that it was coming and so I thought, “Man, I could get in here and start shaking things up right before legalization and maybe I’ll be able to have a practice out of this on the other side.” But it was worth it just to do all the impact litigation, all the pro bono work was very meaningful. It meant a pay cut for me, but the compensation in terms of bringing meaning to my life and making it possible for me to use my skills in a way that no one else was there… no one else was doing this. That was very exciting.

TG Branfalt: So when you get the call or however you get in touch with Sue Sisley, what is your initial sort of reaction? What’s your gut tell you?

Shane Pennington: Yeah, so it’s actually funny how I got the call. So I said I was at this firm Yetter Coleman just before I made this switch, and there’s a guy there named Matt Zorn, who is… he’s a very talented, very, very skilled litigator at this firm, too, in Houston and he went to Columbia Law School, brilliant guy. And we had never worked together on a case, but he went to South by Southwest in Austin and I didn’t go, he went. He met Dr. Sisley there, she gave a talk and she was like, “Nobody will represent me. My application to DEA is stalled out. Nobody’s going to help me. I can’t get a lawyer. I don’t have any money.” And Matt’s like, “Man, I know the guy who sues agencies, he’s the guy two doors down from me. That’s all he does is sue federal agencies. And he’s really good at it. I should go see if he’ll take it on.”

So he came back and he was like… I mean and he and I had talked and we got along pretty well, but we had never worked together, we had never spent that much time together, but he came into my office and he was like, “Hey man, there’s this scientist that I met at South by and she’s a cannabis scientist.” And I’m like, “Okay.” And he’s like, “Yeah, and she’s got this case and her thing is stalled, her application is stalled at DEA.” And so when he said that, I was like, “Look, man, it’s not going to work.” Because basically when you sue an agency, the first thing the court’s going to ask is, “What is it that the agency did that you’re saying they did wrong?” And if your answer to that is, “They haven’t done anything and I want them to do something.” In other words, it’s their failure to act that is illegal, you’re fight…

I mean, that’s like, it’s hard enough to sue the government when they’ve done something clearly wrong, right? They took your house from you because they said that it was on waters of the United States or something like that with the Clean Water Act. Even if it’s clearly wrong, it’s still very difficult to sue the federal government. When the federal government’s up against you in court, there’s a presumption that the government is right and you’re wrong. That’s just how it is and you’re fighting that uphill battle no matter what. But when you’re saying the government should have done something and it hasn’t, that is three times as hard. And the reason is because the court doesn’t want to tell an agency how to prioritize its duties. So say an agency has lot, and they do, they have lots of things to do, they have a limited budget, no court wants to tell them, “You’ve got to do this first and that second and third,” because that’s considered an agency’s decision, they get to decide. Even if they have to do it, they get to decide when they do it and how they do it.

And so I told him, I was like, “Look, dude, that’s a losing battle. You’re not winning that.” He was like, “Will you just look at it because it’s been years that they’ve been sitting on this. They won’t talk to her.” I was like, “I’ll look at it, but I’m telling you, it’s going to be very, very challenging and I don’t think we’re going to win. And that’s why she hadn’t been able to find a lawyer.” So I started looking at it and I knew it would be very, very difficult, but her story was just so compelling. I mean, she is a legit scientist, she’s never broken a law, she’s straight down the middle, trying to… I started looking at it’s like the government is saying cannabis needs to be in Schedule I because there’s no research. And so then she’s trying to do the research and they won’t let her.

TG Branfalt: And, I’m sorry, but if I’m not mistaken, this was during the period of time where they’d said that they were going to open more licenses.

Shane Pennington: Yeah. Yeah. In 2016, that’s right. Now, that’s a very important point. They actually solicited the application. And here’s the deal, it was at the tail end of the Obama administration. This is 2016, they solicit the applications as Obama is on his way out the door and in comes the Trump administration in Jeff Sessions and all of a sudden they slam the door shut, it’s radio silence and as somebody who works on these cases all the time, of course, I mean, you don’t have to be a rocket scientist to see this. It’s like, that’s obviously political. And so that didn’t look good and even though the standard was going to be very difficult to overcome, I felt like it was worth a shot at least to raise awareness of the issue. And so we went to court over it. And as soon as we did, we wrote a really scathing opening brief. And we went to a court I clerked on so I knew how things worked there and-

TG Branfalt: That’s smart.

Shane Pennington: Yeah. And pretty soon the DEA folded. They didn’t want to fight it, they just went ahead and started processing her application.

TG Branfalt: Really?

Shane Pennington: Yeah. Yeah. And actually a series of dominoes fell, man. It’s insane. I don’t know how much we’ll be able to cover, but suffice to say… Let me just give you the punchline first, okay? By the time it was said and done, it turned out, everybody wanted to know why were they not processing these applications? What was the deal? They said they wanted them, why are they not processing them? And they’d actually gotten letters from senators on both sides of the aisle and other lawmakers, right? Democrats, Republicans, what is going on? Tell us the explanation. They had hauled multiple acting attorneys general in front of different committees of the Senate saying, “What’s up, we need this. There’s a veteran suicide epidemic. We have heard that this cannabis is helping these vets, but we don’t know what the risks are, if it’s helpful. You guys say we need the research, what’s going on?”

And DEA would say, “We’re processing the applications as fast as we can. We’re doing everything we can.” For years this was said. So everybody wanted to know what the answer was. Well, our lawsuits uncovered the answer and it’s unbelievable how it all went down. But the answer was that there was a secret memo from the office of legal counsel, this like Jedi council of secretive legal ninjas that operate in the executive branch, and their whole job is to settle disputes within the executive branch. So if like DEA disagrees with FDA or something like that, they will send it to this OLC and this OLC is just very, like I said, most people haven’t even heard of them. And it’s this little group of brilliant attorneys who just sit in this room and write opinions that govern the executive branch. So no matter what any agency says, if OLC says it’s X, Y, and Z, that’s the law on the executive branch.

And so what happened here was… And oh, and all its opinions are secret unless they decide to publish them. So it’s this, if you remember-

TG Branfalt: Or they get leaked.

Shane Pennington: What’s that?

TG Branfalt: Or they get leaked.

Shane Pennington: They do get leaked. So if you remember the Torture Memos under Bush, that was OLC. When the Russia stuff was going on, the Mueller investigation, OLC got involved there. They’re in the background of all the biggest stuff that’s happening in the executive branch. I mean, this is very spy versus spy type stuff.

TG Branfalt: So was it your case that brought these memos to light?

Shane Pennington: A settlement in a case that we brought actually forced DOJ to release the OLC opinion, but explained why they were delaying the applications, were refusing to process them and the answer, get this. The reason they weren’t processing them was because DEA’s policy, called the NIDA Monopoly, had been violating international law for 50 years.

TG Branfalt: And you’re talking about the farm in Mississippi?

Shane Pennington: Yep. Yep. In particular, there’s a treaty called the Single Convention on Narcotic Drugs and it says that a single government agency has to govern marijuana cultivation if a country’s going to allow marijuana cultivation. This is ’61. So this is back when international… and it still is, this still is international law. But it sounds crazy because all these countries now allow marijuana cultivation, it’s obviously happening. That’s still the law under this treaty that the US and all these other countries are signatory to. It says a single government agency has to govern, but in the United States, NIDA and DEA, NIDA is the National Institute on Drug Abuse and DEA, which is of course two agencies, violates the convention and so the OLC said, “We are not in compliance with this treaty because of your NIDA Monopoly and so we can’t move forward with anything until you fix that.”

So DEA had to make all new rules. That’s why these new rules came out in 2020, or I guess it was 2021 by the time they actually were final, and then they got the process going. But they were just sitting on it because DEA… Nobody was very eager to tell Congress, “Yeah, we’ve been violating international law for half a century.” And what’s crazy about it too is… but that’s true. You can look it up. You can look it up, it’s on DOJ’s website. It’s called Licensing Marijuana Cultivation and Compliance With a Single Convention. If you Google that, you will find the OLC opinion that they publicized as part of a settlement. I’ll send it to you. I’ll send you the settlement.

TG Branfalt: This is unbelievable.

Shane Pennington: Right. Yeah. No. And I mean, it’s one of those things where you just start pulling the thread on the sweater and you just keep pulling it and pulling it and pulling it, and finally the emperor’s just standing there naked.

TG Branfalt: Were you just floored by all this? I mean, you’ve been doing administrative law, was there anything even close to this that you’d ever…?

Shane Pennington: That’s why I quit my lucrative, high-powered job to come do this all the time. I was like, “Listen, if it’s low hanging fruit like this.” And there is. There is a lot of stuff. And I mean, dude, this was a secret opinion. So what’s crazy is no one will ever understand this is such nerdy stuff when I try to explain it to people that their eyes kind of glaze over, but for me as an administrative law nerd, this was like… I’m sitting there, Matt and I are in the office and I honestly can’t remember which of us… how it happened… what the exact conversation was, but we’re sitting there and we’re trying to figure out what the answer to this question was. And one of us, and I don’t remember whom, said, “It’s got to be an OLC, I think.” Because it’s…

TG Branfalt: So you just knew that in your gut?

Shane Pennington: Because that would be the only thing that could be secret that they wouldn’t want to tell that could cause DEA not to move forward because they can’t, because PLC said so and yet it wouldn’t be public. And so what we did was we sued under the Freedom of Information Act and we said, “Listen, if you’ve changed the policy that’s governing our client, you’ve got to tell us that policy.” Which is true. And so we sued them and we said, “And also we need to do it on an emergency basis because we shouldn’t have to wait.” And at first the DOJ attorney on the other side was like, “You guys are insane. This is not happening. I don’t know what you think you’re talking about, but nobody gets…”

TG Branfalt: Really?

Shane Pennington: And then a week later, two weeks from the day we filed the lawsuit, the FOIA lawsuit, Freedom of Information Act, two weeks later, the guy called us and he was like, “Okay, yeah. We’re ready to settle it. We’ll post it on the website.” And we were like, “Oh man.” That’s like zero to 60 instantly. That never happens. And yeah, we were totally floored. I was like… I thought we were going to… Honestly I was like, “Dude, we’re going to be famous, man. This is big time.” But of course it happened during COVID and nobody cared and that’s stuff that I think people care when you tell them, but it’s so hard to understand it. And the federal government did everything they could do. They didn’t go to Congress and say, “Hey guys, remember all those times we testified to you and told you we didn’t know what the reason was. We’d like to correct the record.” Nobody ever did that. Nobody ever followed up.

TG Branfalt: Well, and from… I mean, a settlement’s also a lot quieter. You don’t go through all the motions of a trial and dates.

Shane Pennington: And we didn’t want to go blow the lid on it too much at the time, because we were trying to get our client her license. I mean, at the end of the day, this was cool for us. It’s like the little tiny highlight reel that my mom plays at family reunions or whatever about her son doing cool stuff or whatever. It is cool for me, but ultimately we have a client, we wanted her to get her license. So the settlement was we’re not going to press this. You published it, we get access to it. We’ll move forward. And our client got the license, but now years later, obviously it’s… Not years, but a year later, I can talk about it and it’s not violating the settlement agreement.

But another funny thing about it, the guy who wrote the OLC opinion, his name is Henry Whitaker. This guy is now the Solicitor General of Florida, he clerked for the same judge that I clerked for on the DC Circuit so I’d see him at law clerk unions and stuff, and the judge that we clerked for, David Sentelle, he’s this legendary DC Circuit judge, and one day we were out, he smoked cigars in DC with his clerks, and it’s the chance to get to talk to the judge, ask him for life advice or whatever. So one day I asked him, I was like, “Who’s your best clerk ever? Who’s the best, the smartest, the brightest, the best writer or whatever?” He’s like, “Henry Whitaker by far is the best clerk I’ve ever had.”

So when I saw Henry Whitaker wrote this thing, I was like, “Oh my God.” And of course it’s brilliantly reasoned, it’s perfect and it says, yeah, “DEA, since the very first day the NIDA monopoly ever existed, it was illegal and it caused the United States to be out of compliance with international law for half a century and it’s got to be corrected.” So yeah, I mean, that’s just insane. And I actually was giving a talk to a bunch of solicitors general last week about cannabis policy because all the states are very interested now in what’s about to happen, right? And so I was talking to them and I was talking about this case and I was looking out, I was like, “Man, is Henry Whitaker here?” Cause that dude still… He still intimidates me because this is legend to Sentelle clerks everywhere. But yeah, pretty crazy.

TG Branfalt: So what’s interesting is that the reason we sat initially was for your letter and about the seeds and I’m not going to rehash that, but that seemed to have got sort of a lot more traction than the sort of mind-blowing OLC opinion and that sort of thing.

Shane Pennington: Which is crazy. What does that say about our industry and the law? Everybody notices more a seed letter than they do this OLC thing, right?

TG Branfalt: Yeah. And I mean, one of the things that really struck me when we first talked was you had one very, very straight message that you wanted to send. Why was it so important for you to make sure that it was out there the way that you wanted it out there?

Shane Pennington: Well, because… So that seed letter… I mean basically long story short on that was after the 2018 Farm Bill, we figured out that seeds, tissue, cultures, genetics, because they’re below 0.3%, they’re hemp, not marijuana and their federal law, therefore at least at the federal law part, there’s no barrier to interstate shipment of them, which is a huge deal to people out there who, everybody under the state legal markets who are having to… they can’t get IP and genetics. There’s no way if you have genetics in California to get them to New York, for example, without breaking federal law, the assumption was and so you had to have all these work arounds. So we knew that was a big deal and so we wanted to let people know, “Hey, federal law is not a barrier here. I wrote to DEA, got them to say on the record that seeds are hemp and therefore they’re not marijuana under federal law.”

And that created this big splash, but I also knew that the law is incredibly complicated. And so just having DEA say that about federal law doesn’t mean that you can now just go put a bunch of seeds and clippings in a box, take it to Amazon and have them ship it all over the country and advertise it online. That is a much more complicated question cause you have to look at state law and all this, it gets incredibly complicated. But I knew as soon as we let that drop about what DEA had said, that all the folks out there who that was big news for were just going to immediately start shipping stuff and ignore all of the complexities and just say, “Yay, we can ship things everywhere.” And so I wanted to get it out there that that’s not true. There’s a lot more to it than that, you have to be very careful.

We let it drop, I said it a million times every time we would publish something, I’d be like, “Listen, this is complicated. This only resolves one piece of it.” And still the next day I wake up, I’m drinking my coffee and I’m looking at the news, and of course I have a lot of Google alerts for cannabis, marijuana, whatever, and I’m looking and sure enough, the first thing up there is One Simple Trick to Mail Cannabis. And I was like, “Oh no. The plane is crashing into the mountain.” And so I was glad that when we got to talk, I was able to tell people, get a bigger megaphone to be able to say, and let me say it again now that we’re on this podcast, do not think that you could just open up a seed business and start shipping interstate. It may be possible, but you need a very, very talented team of lawyers to help you do that. And I’m not just saying that because I mean, I got plenty of work, it’s not that, it’s just you will get arrested probably so be careful.

TG Branfalt: I do want to ask you too, because we only have a couple minutes, what role do you think that you and other cannabis-focused attorneys have in sort of relegating in some way information and disinformation in this industry?

Shane Pennington: Yeah. I mean, I think that right now, unfortunately, and, dude, it sounds like I’m bashing on other attorneys, I do not mean to do that at all, but I do need to say that attorneys need to know how to stay in their lane. I stay in my lane. I’m not an IP attorney. I told you my buddy Matt Zorn is and he’s an intellectual property attorney. I don’t tell him how to practice intellectual property. He doesn’t tell me how to practice federal administrative law.

In cannabis though, there has been no federal stuff going on for so long that there have been these shops that have opened up that are just do-it-all kind of attorneys. And frankly, the people in this industry are not risk averse and their attorneys have an appetite for risk too. And so these are the type of people who will be like, “Yeah, we can do it. Let’s do it.” There’s an F1 car sitting out there on a track and they’d be like “I can drive it, just give me the keys. I’m sure I can handle it.”

Whereas I come from a different way of thinking where I’m never going to go outside my lane. And I think that as the industry-

TG Branfalt: No F1’s for you?

Shane Pennington: What’s that?

TG Branfalt: No F1’s for you?

Shane Pennington: Not without a lot of lessons, man. Do you know how expensive an F1 car is? I think they light on fire easily, too, like, nah, that ain’t for me. So anyway, I think that as we get more sophisticated, more money pours into the industry, things start to open up, there are going to be a lot more attorneys with more areas of specialization who are going to come in and they’re going to discipline things. They’re going to tell their clients what I’m telling them, “Pump the breaks, let’s think this through.” And that’s going to be very important as things get more sophisticated.

I mean, that was a shock for me coming from big law where every client I have has a general counsel’s office with a hundred attorneys in it who then hire outside council for specialized things. Here, it’s just like everybody’s just Wild West, “We want to sue the government. Okay, let’s just do it. Let’s just write the complaint and just throw it out there.” And I’m like, “Man, we should think about this.” And I think there’s going to be a lot of that kind of self-regulating, learning to think before we leap more as the industry progresses and becomes more above ground, basically.

TG Branfalt: Dude, this has been so much fun and I know that you have very important lawyer things to do. So I don’t want to keep you too much longer. But let’s say that a law student who’s interested in taking sort of… going into the cannabis side of law, what would your advice to them be?

Shane Pennington: If you’re in law school and you’re wanting to do this kind of stuff, get in contact with me because I need help. And what I need is… Well, what I need is I need people who can write and I need hard workers. That’s the main thing. And I guess that if you’re not in law school and you’re thinking about doing this, or if you’re early on, I guess there are a couple of things. First thing is, you need to know your business and you need to have a business sense, because this is an up and coming industry and it’s going to start getting plugged into new things like the Amazons of the world are going to start getting involved, all these new regulators are going to come online. You need to learn economics, you need to learn business, you need to be kind of a Jack of all trades, but you really need to know your business.

We need people who understand this plant and how it works, and frankly, better than I do. I don’t know anything about it. That’s my weakness. That’s why I went to Vicente Sederberg where there are all these experts who do know. But that’s something you’re going to need to know. And then you’re going to have to work on writing. Writing is going to be a premium. I mean, I’m a pretty good writer and we need a lot of good writers and we need people who have experience in the federal government, too. So taking a few years to be a prosecutor, taking a few years to work at DOJ or being a public defender and then coming back would be very helpful because all my years clerking have helped me to understand how things work inside the government. That way, now that I’m on this side, I’m able to have thoughts like, “Oh, that’s probably an OLC opinion,” and then how to get it.

So I guess the bottom line is there’s no straight line to success as a lawyer. Everybody kind of takes all their experiences and they use them all and we all have different things we bring to the table. And so I would encourage people who want to do a practice like the one that I have to go do something else, honestly. Go get other experience and then come back to this. Because, again, I mean the biggest lesson that I’ve learned and the secret that I know that a lot of people don’t, is that there’s no such thing as cannabis law. There’s just law. And everybody who wants to do it because it seems cool or whatever, I mean, this is a complex area of law. You need to screw your thinking cap on tight and you need to really dot your Is and cross your Ts.

Cause I’ll tell you, one thing you’re going to find is that courts are very skeptical of cannabis cases. Every lawyer needs to look legit when they walk in the room, they need to look very professional. But if you’re representing a cannabis client, you need to look four times more professional. If the person on the other side of you has gold plated credentials, yours need to be platinum, you know what I mean? Because it’s almost like there’s still this stigma, especially among federal judges, some of whom are older. I’m not saying that they’re…. I don’t think they intend to do anything corrupt or unfair, it’s just there’s this latent bias that I think people have. I had it, man. When that case came across my desk, I had my eyebrow raised from the get-go cause I was like cannabis, what? What is this Bill and Ted’s Excellent Adventure or something. We take serious lawsuits here at this law firm. What is this all about?

And I had to read for a long time to realize that there are kids with epilepsy, there are people terminally ill with cancer, it’s not all… There’s a lot more to this and that the federal government for many, many years was blocking science, which is insane to me, science on things that could help people. And I think that once you get to where you can communicate that message in the right way, that’s when you can start making progress. But in order to do that, you need to work hard, get your grades right, get your experience right and then get hooked up with the right mentor, which would be me. So holler at your boy whenever you’re ready.

TG Branfalt: If people were trying to holler at your boy, Shane Pennington, how would they get in touch with you?

Shane Pennington: So they could email me at S.Pennington@VicenteSederberg.com, that would be the easiest way. And you can just go to Vicente Sederberg’s website, look me up, Shane Pennington, you’ll see my phone number there and all that. So, that’d be the easiest way.

TG Branfalt: Awesome. Dude, it’s been a pleasure. I’m really delighted that we got to do this after, cause when we were hanging up the phone last time I was like, “I want to talk to this guy for like another 45 minutes to an hour.” So I really…

Shane Pennington: Yeah. No, I’m glad you did it. I really am. I mean it’s important stuff and I appreciate you shining a spotlight on it.

TG Branfalt: No, thanks so much for being on the show and I’m sure I’ll find something with your name on it in the future come across my desk.

Shane Pennington: Absolutely. I hope so. If not, then something bad’s happened to me.

TG Branfalt: I’ll be in touch to make sure nothing bad happens to you.

Shane Pennington: All right, man. Good talking with you.

TG Branfalt: You can find more episodes at the ganjapreneur.com podcast in the podcast section of ganjapreneur.com on Spotify and in the Apple iTunes store. On the ganjapreneur.com website, you’ll find the latest in cannabis news and cannabis jobs updated daily along with transcripts of this podcast. You can also download the ganjapreneur.com app in iTunes and Google Play. This episode was engineered by us. I’ve been your host TG Branfalt.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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’

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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