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Campaign Supporting Adult-Use Legalization Launches in Maryland

9/09/2022

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

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

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

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

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

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

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Culinary Delights: Cannabis Edibles for the Foodies

9/08/2022

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

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

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

TSUMo Snacks Salsa Verde Chips

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

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

Cosmic View Suns Lollies

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

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

Hervé Macarons

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

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

Mesobis Mango con Chile Gomitas

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

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

Kiva x Yeastie Boys Everything Bagel Seasoning Munchies Bar

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

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

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

9/08/2022

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

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

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

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

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

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

9/08/2022

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

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

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

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

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

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

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

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

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

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

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

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Minnesota State Fair Poll Finds Majority Support for Cannabis Legalization

9/08/2022

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

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

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

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

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

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

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

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Massachusetts College Partners With Green Flower on Cannabis Education Courses

9/08/2022

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

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

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

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

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

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

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

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

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Emily Gant: The Evolution of Cannabis Industry Regulations

9/07/2022

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

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

Scroll on for the full interview:

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

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

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

When did you begin advising clients in the cannabis industry?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Poll: 65% of U.S. Voters Support Giving Cannabis Companies Banking Access

9/07/2022

According to an Independent Community Bankers of America (ICBA) poll released on Tuesday, 65% of U.S. voters support allowing cannabis businesses to have access to financial services in states where cannabis is legal. The poll was commissioned by Morning Consult.

The poll found that 71% of respondents agree that allowing cannabis businesses to access baking services would help reduce the risk of robbery and assault at the businesses. Another 55% said that with some cannabis-related businesses owned and led by people of color, women, and the LGBTQ community, allowing for cannabis banking would help these underserved communities.

In a statement, ICBA President and CEO Rebeca Romero Rainey said the poll shows “U.S. voters have made clear that current law inhibiting access to the banking system for cannabis-related businesses has a negative impact on local communities.”

“With a supermajority of U.S. voters voicing support for allowing cannabis-related businesses access to the banking system, the Senate should act now on bipartisan cannabis banking legislation that the House has passed seven times.” — Romero Rainey in a press release

ICBA’s polling also found that more than 80% of voters agree that businesses that operate exclusively in cash have a higher risk of robbery or theft; 62% believe that restricting cannabis-related businesses from accessing the banking system poses a threat to public safety; 63% say that allowing cannabis-related businesses to access the banking system will help improve public safety, and 58% agree that a Senate vote on establishing a cannabis banking safe harbor is important.

ICBA was the first national banking trade group to support the SAFE Banking Act and to testify before Congress on its behalf.

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Arkansas Medical Cannabis Sales Total $23.7M in August

9/07/2022

Medical cannabis sales in Arkansas reached $23.7 million in August, totaling 4,245 pounds of product sold, KNWA/KFTA reports. The total pounds sold is a new record for the state, Scott Hardin, spokesperson for the Arkansas Department of Finance and Administration, told KNWA/KFTA.

“Since January 1, 2022, patients have spent $181 million to obtain 32,027 pounds. With $2.7 million in state tax revenue collected from medical marijuana in August, a total of $78.68 million has been collected since the industry launched in mid-2019.” — Hardin to KNWA/KFTA

In July, the state’s dispensaries sold $23.3 million worth of medical cannabis, led by Natural Relief Dispensary in Sherwood which also had the highest sales totals in August.

In all, there are 89,983 active medical cannabis patients in the state.

Last month, however, a lawsuit was filed that could doom the state’s medical cannabis industry. The lawsuit seeks to use the Racketeer Influenced and Corrupt Organizations Act, commonly known as RICO, to target medical cannabis company plaintiffs accused of deceptive trade practices. The lawsuit claims some medical cannabis was sold in Arkansas with a potency different from what was advertised – a deceptive trade practice – and that cannabis businesses are subject to RICO because cannabis is federally outlawed.

Adult-use advocates in August also submitted enough signatures to put a broad legalization question on November ballots; however, the state Board of Election Commissioners rejected the initiative’s popular name and ballot title, claiming it didn’t fully explain the constitutional amendment and that the measure would repeal the state’s current THC limit on medical cannabis products.

The Arkansas Supreme Court, however, is conditionally allowing the question to appear on November ballots although the court has not said whether or not it would allow the votes to count.

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Air Force & Space Force Consider Changing Cannabis Policies for Recruits

9/07/2022

The Air Force Recruiting Service is considering changes to its cannabis policy, the Air Force Times reports. Under the policy update, recruits who test positive for cannabis (THC) would no longer be automatically disqualified from joining the Air Force or Space Force.

Major General Ed Thomas, a recruiting boss for the Air Force, told the Times that officials are considering waivers for positive THC tests at Military Entrance Processing Stations (MEPS).

“If applicants test positive for THC when they go to the MEPS (right now), they’re permanently barred from entering the Air Force or the Space Force. But as more states legalize cannabis, there is an increased prevalence of THC-positive applicants.” — Thomas to the Times

It’s unclear when the change will take place or how many people have been turned down due to a positive THC test.

“We have to be realistic today,” Thomas said. “We need to exercise common sense.”

All service members, regardless of the branch they serve in, cannot use cannabis of any kind, including CBD; however, each branch can set its own rules on how to approach cannabis use among new recruits, the report says.

The Navy has a pilot study underway evaluating a similar change where prospective sailors that test positive for THC can retry after a 90-day waiting period. The Navy has granted waivers for cannabis use to trainees at Recruit Training Command for years, a Navy spokesperson told the Times.

Thirty-eight states and Washington, D.C. have legalized cannabis for medical use, while 19 states and Washington D.C. have legalized adult-use cannabis. More than half of all new recruits come from one of the states with adult-use reforms in place, the report says.

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North Carolina Rejects Hemp Defense and Upholds Conviction of Man Caught Mailing Cannabis

9/07/2022

A North Carolina court has upheld the drug convictions of a man who was caught mailing cannabis via FedEx, the News & Observer reports. Joe Teague had appealed the conviction arguing that law enforcement lacked probable cause to search the package because of state and federal laws legalizing hemp and, because hemp and THC-rich cannabis look and smell alike, that agents on the scene had no way of telling the two apart without a chemical test.

The state Court of Appeals on Tuesday unanimously rejected Teague’s arguments, saying “law enforcement officers complied with the requirements of the Fourth Amendment” at “every stage of the investigation” from the removal of the package from the FedEx conveyor belt to the drug dog sniff at the facility.

In 2018, a Wake County drug agent had stopped the package at the facility noticing it had been taped along all the seams, which, along with a phony phone number – (888) 888-8888 – raised suspicion. The officer called in a drug dog which reacted to the package and triggered a warrant. The package was found to contain 15 pounds of cannabis packed in vacuum-sealed bags.

“The legalization of industrial hemp, which is reported to be indistinguishable from marijuana without quantitative chemical analysis, raises compelling legal issues for our courts. However, we conclude that Defendant’s arguments in the instant case are without merit. Accordingly, these arguments are overruled.” — North Carolina Court of Appeals, State v. Teague

The search at the FedEx facility led to an investigation and ultimately to Teague. Officers found a nearby storage facility and deployed the drug dog to the units where they uncovered more cannabis, and later more cannabis flower, concentrates, paraphernalia, and vacuum-seal bags at Teague’s home.

The court ruled that Teague’s Fourth Amendment rights were not violated by the “mere removal” of the package from the FedEx conveyor and that the 5 to 10-minute on-site search at the FedEx facility by a dog wasn’t an unreasonable seizure. The court cited a previous decision which found that although citizens have a legitimate interest that their package not be opened and searched, they cannot reasonably expect that postal employees won’t open and view the contents.

In the appeal, Teague argued that law enforcement agents did not determine how much THC was in the contents of the package and, therefore, could not have made the legal distinction and the trial court should have granted an order to dismiss.

However, the judges ruled that hemp legalization “in and of itself, did not modify the State’s burden of proof at the various stages of our criminal proceedings.”

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California Gov. Signs Medical Cannabis Patient & Physician Protection Reforms Bill

9/06/2022

California Gov. Gavin Newsom (D) on Friday signed into law a bill to protect the right of patients to medical treatment if they use cannabis and the rights of doctors and clinics to treat them, Bay City News reports. The law clarifies that physicians cannot be punished for treating patients who use or test positive for cannabis, despite its status as an illegal drug under federal law.

The bill also prohibits the automatic elimination of patients who use cannabis from pain management programs by specifying that a positive drug test for cannabis should not be the sole basis for denying medical treatment under such programs.

In a statement, Dale Gieringer, director of California NORML, one of the sponsors of the bill, said that the law was needed as “many physicians are under the mistaken impression that they can’t prescribe medication to patients who test positive for cannabis.”

California NORML said the organization regularly hears from patients who are terminated from pain management medications due to their medical cannabis use. In an online survey with nearly 600 respondents, the advocacy group found that 18.5% of respondents had been denied prescription medications by a doctor due to their medical cannabis use.

In 2019, the House of Delegates of the California Medical Association voted to adopt a recommendation stating, “That CMA opposes policies of health plans, health systems, and hospitals that have pain management programs that automatically eliminate patients who use therapeutic cannabis.”

Newsom on Friday also signed a bill to allow terminally ill patients to use cannabis in certain healthcare facilities. Hospitals were resisting implementing the law, claiming a conflict with federal law.

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GOP Minnesota Governor Nominee Says Voters Should Decide Whether to Legalize Cannabis

9/06/2022

Scott Jensen, a former Republican Minnesota state senator and current GOP gubernatorial nominee for the state, said last week that he thinks Minnesota should consider decriminalizing “trivial amounts” of cannabis and should let voters decide via the ballot whether to adopt cannabis legalization reforms, Marijuana Moment reports.

Jensen, who sponsored an unsuccessful bipartisan legalization bill in 2019 while serving as a state senator, said in an interview last week that he supported letting voters decide on the issue.

“If we can have a discussion and then put it on the ballot as an amendment, I think that makes a lot of sense.” — Jensen, via an interview in The Star Tribune newsletter

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

Last year, the Minnesota House passed a cannabis legalization bill but the GOP-controlled Senate ultimately let the legislation die without being considered on the Senate floor. At the time, Senate Majority Leader Paul Gazelka (R) said, “Making legalized pot for fun, we just don’t think that’s a good idea.”

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

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Colorado Cannabis Company Facing $45K in Fines for Festival Violations

9/06/2022

A Colorado cannabis company is facing $45,000 in fines due to violations at Denver’s Mile High 420 festival last April, the Denver Post reports. Denver Packaging Co., which also operates as Keef Brands, admitted to seven violations, including unlawful acts and packaging and labeling violations, according to city documents issued last week outlined by the Post.

The fines stemming from the festival are due to the company having products on-site at the festival, a violation of city and event rules. During the event, Denver Department of Excise and License Inspector Brooke Bearman said she had visited the company’s booth and witnessed products on display, a large advertising sign, and two coolers full of products. Event organizer Adam Schmidt told Bearman that “he had communicated with sponsors that they were not allowed to have any product onsite,” according to city documents outlined by the Post.

When told about the violations, Denver Packaging Co. Owner Andrew Veron removed the products from the event.

“Denver Packaging Co. takes pride that for nearly the entirety of its eight years operating in Colorado, it never ran into any regulatory issues or complaints. Unfortunately, a misunderstanding on April 20th occurred between third-brand promoters, city investigators, and our staff, culminating in a documented violation by local regulators. (The city’s) allegations were very serious, and we accept full responsibility for our actions.” — Vernon, in an email to the Post

Following the event, the Department of Excise ordered the company to appear on July 21 to show why its retail and medical MIP manufacturer licenses shouldn’t be suspended or revoked. The order signed last week allows the company to continue to be licensed, the report says.

The company will have to pay a $15,000 fine immediately, while an additional $30,000 fine is being held in suspension for a year, in case of future violations. Denver Packaging Co. must pay the fines within 90 days.

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Canapa Now Offering Automated Pre-Roll & Tray Loading

9/06/2022

Complete End-of-Line Automation to Get Your Pre-Rolls Retail-Ready

September 6, 2022 – Canapa by Paxiom has added to its industry-leading lineup of automated pre-roll solutions by introducing the first pre-roll tube loading and tray loading systems available on the market.

Fully customizable to meet the exact needs of their pre-roll clients, both systems integrate seamlessly with their industry leading JuanaRoll pre-roll machine as well as other brands of semiautomatic machines and manual joint filling processes.

When paired with the fully automatic JuanaRoll, the tube loading system uses their intelligent elevating conveyor to automatically convey pre-rolls up to their inspection conveyor to be inspected and check-weighed prior to being robotically or manually loaded into tubes, capped and sealed. For those operations using semiautomatic or manual pre-roll filling processes, Canapa has designed this system to be manually fed or partnered with a SCARA robotic pre-roll loader.
Their pre-roll tray filling solutions apply the same principle as the tube loading system. Pre-rolls are conveyed, weighed and inspected prior to being delicately placed into the client’s tray by a customized SCARA robot. This system is driven by their Vision camera system to ensure precise pre-roll placement into the designated tray packing pattern.

With additional system options available for labeling, bagging, cartoning, case packing and robotic palletizing, Canapa by Paxiom can provide complete A-to-Z automation options that will improve efficiency, increase production and decrease product waste for any pre-roll producer.

To learn more about these tube loading and tray loading systems, the JuanaRoll pre-roll machine and the WeightCheQ check weigher, visit www.canapasolutions.com/pre-roll-packaging-machine.

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Study: Cannabis Consumption Not Linked to Increased Apathy

9/05/2022

A new study published in the International Journal of Neuropsychopharmacology on August 24 suggests that cannabis consumption is not associated with increased apathy, effort-based decision-making for reward, reward wanting, or reward liking in adults or adolescents. The small study also found that non-cannabis consumers had higher levels of anhedonia, or the inability to feel pleasure.

The researchers from the University College London (UCL), the University of Cambridge, and King’s College London, used data from the CannTeen study, which included 274 adult (26- to 29-years-old) and adolescent (16-17) cannabis consumers who used cannabis one to seven days a week in the past three months.

Participants completed questionnaires to measure anhedonia, asking them to rate statements such as “I would enjoy being with family or close friends.” They also completed questionnaires to measure their levels of apathy, which asked them to rate characteristics such as how interested they were in learning new things or how likely they were to see a job through to the end.

Cannabis users scored slightly lower than non-users on anhedonia – in other words, they appeared better able to enjoy themselves – but there was no significant difference when it came to apathy. The researchers also found no link between the frequency of cannabis use and either apathy or anhedonia in the people who used cannabis.

Lead author and PhD candidate Martine Skumlien from UCL Psychology & Language Sciences and University of Cambridge, said the survey results were “contrary to the stereotypical portrayal we see on TV and in movies.”

“We were surprised to see that there was really very little difference between cannabis users and non-users when it came to lack of motivation or lack of enjoyment, even among those who used cannabis every day.” — Skumlien in a press release

Co-author Dr. Will Lawn from UCL Psychology & Language Sciences and King’s College London, described the study as “one of the first to directly compare adolescents and adults who use cannabis,” and it “suggests that adolescents are no more vulnerable than adults to the harmful effects of cannabis on motivation, the experience of pleasure, or the brain’s response to reward.”

“There’s been a lot of concern that cannabis use in adolescence might lead to worse outcomes than cannabis use during adulthood,” he said in a statement. “In fact, it seems cannabis may have no link – or at most only weak associations – with these outcomes in general. However, we need studies that look for these associations over a long period of time to confirm these findings.”

“We’re so used to seeing ‘lazy stoners’ on our screens that we don’t stop to ask whether they’re an accurate representation of cannabis users. Our work implies that this is in itself a lazy stereotype, and that people who use cannabis are no more likely to lack motivation or be lazier than people who don’t,” Skumlien said in a statement. “Unfair assumptions can be stigmatising and could get in the way of messages around harm reduction. We need to be honest and frank about what are and are not the harmful consequences of drug use.”

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New Task Force to Increase Scrutiny of D.C.’s Cannabis Gray Market

9/05/2022

Editor’s note: This article was written by Ethan McLeod and was originally published via Outlaw Report. It has been republished with permission.

Unlicensed cannabis businesses operating in the District of Columbia’s gray market can expect more inspections and heightened regulatory scrutiny after the end of Labor Day weekend.

Tuesday, September 6 marks the launch of inspections by the new Cannabis Joint Task Force, as well as the end of a 30-day grace period for businesses announced last month by the Alcoholic Beverage Control Administration. The task force, made up of 10 local regulatory and law enforcement agencies, will be inspecting cannabis “gifting” shops across the District for operating licenses and tax, building and health code compliance beginning September 5.

“Regulatory agencies regularly conduct inspections at businesses under their authority to ensure awareness of and compliance with DC laws and regulations,” said ABRA Chief of Staff Jared Powell in an email to The Outlaw Report. “The upcoming joint inspections represent District Government agency’s [sic.] efforts to more closely collaborate together on compliance and education initiatives.”

ABRA did not make officials available for an interview for this report.

The start of inspections by the task force marks the latest move by D.C. government to address a sizable, unregulated gray market that has evolved in the eight years since voters legalized cannabis possession, growing and gifting for adults by approving Initiative 71. While D.C. remains legally barred from taxing and regulating cannabis under a budget rider included annually in the federal budget approved by Congress, businesses for years have taken advantage of a loophole to “gift” cannabis to customers who purchase a non-cannabis item or service.

Many I-71 entrepreneurs view the task force as a new step by local government to punish businesses working within the limited space afforded by D.C. and federal laws — and one that has included sparse communication between agencies and business owners about what to expect during forthcoming inspections.

“We’re not sure what to fear because they haven’t really listed out guidelines,” said Mackenzie Manns of the Generational Equity Movement, a coalition of seven Black-owned cannabis businesses in Washington. “This doesn’t seem like they’re working to bring us into conversations. It does follow a similar trend, that they are trying to crush small businesses.”

Last month’s task force announcement followed multiple attempts by D.C. Council Chairman Phil Mendelson over the past year to crack down on gray market companies with legislation that would have imposed heavy fines, revoked business licenses and shuttered storefronts. Following public backlash, Mendelson scrapped such language in a bill he had initially proposed last October. Then, in April, the Council rejected another bill that would have allowed for increased regulatory enforcement against such businesses after pushback from I-71 business owners, who argued punishments would disproportionately harm Black entrepreneurs. The Council subsequently passed a law in June allowing D.C. residents to “self-certify” as medical patients — without also increasing enforcement actions against gray market businesses — to help support the city’s limited medical cannabis market that has struggled with competition from gray market operators.

The new Cannabis Joint Task Force includes ABRA, the District’s Departments of Consumer and Regulatory Affairs (DCRA), Fire and Emergency Medical Services (FEMS) and Health, as well as the Office of the Attorney General for D.C., the Metropolitan Police Department, the Office of Tax and Revenue, and the Department of Forensic Science. ABRA will be serving only as a coordinating agency, Powell noted — its enforcement duties are limited to businesses licensed to produce and sell alcohol and medical cannabis, he said — while the inspectors will be from the Health Department, DCRA, and FEMS.

Regular inspections at businesses will aim “to ensure awareness of and compliance with DC laws and regulations,” Powell said. The Office of Tax Revenue will also be reviewing business registrations independently, but its personnel won’t accompany inspectors on visits. The Department of Forensic Science will test items seized during inspections.

A newly published investigation by Capital Community News, supported by the investigative journalism grant-making organization Spotlight D.C., identified 60 I-71-operating storefronts citywide, and determined roughly half are operating without a Basic Business License and 25 businesses lack a Certificate of Occupancy.

Asked whether MPD will be shifting its enforcement approach for I-71 businesses, public affairs specialist Alaina Gertz said that while the task force’s focus “is on administrative violations under the jurisdiction of other agencies, they will refer any potential criminal matters to MPD.”

Some operators have said they feel threatened by a lack of dialogue between the task force and businesses leading up to August task force announcement or the end of the grace period next week. In a statement to The Outlaw Report, the I-71 Committee, a coalition representing D.C. cannabis “gifting” businesses, said in a statement that “District businesses continue to be in the dark as to what the goal and motivation is behind ABRA’s intentions to single out only I-71 businesses for investigation and enforcement.

“There is no discernible threat that ABRA is responding to nor is there any likely benefit to public safety, to the District’s economy, or to the quality of life of District residents. Shuttering our doors will only result in additional public safety concerns,” including more pop-up cannabis retail events (rather than established brick-and-mortar businesses), disruptions to business leases and displacement of companies and workers.

Such effects would be “ultimately, leaps backwards in cannabis legislation progress, which on a national level is only moving forward,” the I-71 Committee said.

Manns, of the Generational Equity Movement, said shops in GEM’s coalition support government monitoring businesses for compliance with local laws.

“We want to be part of a regulated industry, and the businesses involved in [GEM] have worked hard to make sure that their businesses are operating within the standards that D.C. sets out for small businesses,” she said.

However, operators remain uncertain about what inspections will look like at this point, as well as their implications if a company is fined or referred for further investigation — particularly if an operator hopes to apply for licensure if D.C. is eventually allowed to set up a regulated market.

“I think the fear comes more from the unknown, that we don’t entirely know,” Manns said.

Asked about such future implications if regulation of a legal market moves forward, Powell said “warnings and citations are an administrative function and will not affect applicant eligibility.”

ABRA this month will be issuing its first set of medical cannabis business licenses since the agency took over regulation of the city’s medicinal market from the Department of Health in 2020. On September 28, ABRA plans to award five new licenses: two new cultivation centers; one dispensary, to be located in either Ward 3 or 5, and two testing labs.

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Pennsylvania Gov. Announces ‘Large-Scale’ Pardoning for Non-Violent Cannabis Convictions

9/02/2022

Pennsylvania Gov. Tom Wolf and Lieutenant Gov. John Fetterman announced on Thursday a one-time, large-scale pardoning project for people with select minor, non-violent cannabis criminal convictions. The Democrats said the Pennsylvania Board of Pardons is accepting applications for the PA Marijuana Pardon Project through the end of the month.

Eligible convictions under the program include possession of cannabis and possession of a small amount for personal use.

In a statement, Wolf said he has “repeatedly” called on the state’s Republican-led General Assembly to legalize cannabis for adult use but they’ve not met the call for action.

“Until they do, I am committed to doing everything in my power to support Pennsylvanians who have been adversely affected by a minor marijuana offense on their record. This pardon project has the potential to open the door for thousands of Pennsylvanians – the college grad looking to start their career, the grandparent who’s been wanting to chaperone a field trip, or any Pennsylvanian who’s been told ‘no’ for much needed assistance. Now’s your chance.” — Wolf in a press release

Fetterman, who is running for Senate against Republican Dr. Mehmet Oz – who rose to fame as a daytime television host – said that “nobody should be turned down for a job, housing, or volunteering at your child’s school because of some old nonviolent weed charge.”

“…Especially given that most of us don’t think this should be illegal,” he said.

It is estimated that thousands of Pennsylvanians are eligible due to convictions over the past several decades, even pre-dating cannabis’ inclusion as a Schedule 1 drug under the Controlled Substances Act.

Since taking office, Wolf has granted 2,098 pardons, the governor’s office said, and of those, 326 were part of an expedited review for nonviolent cannabis-related offenses. In the 15 years prior to Wolf’s term, only 1,805 pardons were granted in total.

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A Tale of Three Outlets: How FOX News, CNN, & the Daily Beast Covered the ‘Cannabis Users More Likely to End Up in ER’ Study

9/02/2022

Late last month, headlines were ablaze with a study that found cannabis consumers were 22% more likely to end up in the emergency room than non-consumers and while it is not the mission of Cannabias to take on studies, it is the mission of Cannabias to break down these headlines and the stories they accompany.

Specifically, we’re going to look at three news outlets’ coverage of the study: the Daily Beast, FOX News, and CNN. The Beast is a snarky, opinion-oriented, publication, while FOX and CNN represent the right and left, respectively.

All three articles employ gatekeeping bias by only including the voices of the researchers who worked on the study. This is problematic because they must advance their narrative – it’s in their best interest. The CNN report goes a step further by mentioning previous, unrelated, studies that found cannabis consumers have higher levels of smoke-related toxins in their blood and urine and another, again unrelated, study that found teenagers were about twice as likely to report “wheezing or whistling” in the chest after vaping cannabis than after smoking cigarettes or using e-cigarettes.

Interestingly, in his CNN interview, study author Nicholas Vozoris, assistant professor and clinician investigator in the division of respirology at the department of medicine at the University of Toronto, said that “respiratory reasons” came in a “close second” behind bodily injury for ER visits among cannabis consumers; while FOX states that “the researchers didn’t find a strong association with marijuana use and emergency department visits or hospitalizations specifically related to respiratory issues or death from any cause.”

So which is it? We know by now that CNN is a clear example of structural bias when it reports on cannabis (structural bias is when the outlet itself shows bias on an issue on a regular basis) and the story concludes by citing several other previous studies purporting the harms of cannabis, and with a quote by Vozoris that the study should set off “alarm bells.”

FOX also ends its story with a Vozoris quote, but from a press release, which is far more measures than what he’s quoted as saying in an email to CNN. FOX’s headline also uses the term “cannabis” while CNN uses “marijuana” (adjective bias).

Of the three, though, the Beast is the only one to point out that “correlation doesn’t equal causation.”

“Just because pot smokers find themselves in the hospital more often than those who don’t smoke doesn’t mean that it’s the weed that’s doing it. It could be that those who smoke pot might just tend to be the type of people to accidentally harm themselves, or another reason entirely.” — the Daily Beast, “Put Down the Bong – Pot Users More Likely to Land in Hospital,” June 28, 2022

And this is a major, major caveat that neither FOX nor CNN brings up. The study doesn’t conclude whether the person in the ER was under the influence when the accident occurred; simply, they use cannabis and ended up in the ER.

This is not to say the Beast story isn’t rife with adjective and adverbial bias (“pot heads,” “weed,” but not “marijuana”) but it does provide additional context about the study – that 22% of cannabis consumers wound up in the hospital with an injury while 14% for respiratory-related issues (which is a non-negligible, 8% difference, CNN).

I mean, if you’re a bong half-full person, you could read this to mean that cannabis consumers may be more active, may work on their houses more, may actually do things that can lead to accidents (I’m just musing here since the last time I ended up in the ER was related to a home improvement project) compared to non-consumers, but I digress.

Remedy: CNN and FOX could have brought in other voices not associated with the study to add a little balance. CNN could have not used “nearly 25%” in their headline (I’m a stickler for this sorta thing, just say 22% if it’s 22%, facts are facts), substituted “cannabis” (seven instances) for “marijuana” (nine instances), and perhaps covered studies that did not find negative outcomes associated with cannabis use to maybe balance their tone.

FOX, overall, did a better job covering the study and could have used “cannabis” (31) instead of “marijuana” (although the former outnumbers the latter in the coverage 31-23) but the report is more balanced than the one authored by CNN.

And, while we shouldn’t expect much from the Beast, considering it leans into snark, they could have also used an alternative voice to provide some additional context.

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Study: Pharmaceutical Stocks Dip Following Cannabis Legalization Reforms

9/02/2022

A study published on Thursday suggests that the stock market value of major pharmaceutical firms decreases following the passage of cannabis legalization laws. The researchers from California Polytechnic State University and The University of New Mexico found that stock market returns for major pharmaceutical firms were 1.5-2% lower 10 days following the passage of cannabis legalization reforms and that the implications of the annual sale from this reduction were an estimated $9.8 billion.

The study, “U.S. Cannabis Laws Projected to Cost Generic and Brand Pharmaceutical Firms Billions,” was published in PLOS One. It concludes that cannabis acts as a new competitor in pharmaceutical drug markets and the study authors estimate a near 11% reduction in conventional pharmaceutical sales.

Dr. Sarah Stith, co-author of the study of the University of New Mexico Department of Economics and an affiliated researcher with the university’s Medical Cannabis Research Fund, said that “currently, cannabis patients and their providers have little information to guide them towards the most effective treatment for their condition.”

“The future of cannabis medicine lies in understanding the prevalence and effects of the plants’ components beyond THC and CBD and identifying ways to categorize cannabis by measurable characteristics that are known to yield specific effects. Mimicking conventional pharmaceuticals through standardization may not be the optimal endpoint for cannabis, as the variability inherent in the cannabis plant is likely driving its ability to treat so many conditions.” — Stith, in a statement

The researchers also found that adult-use cannabis legalization had more than twice the impact on pharmaceutical stocks than medical cannabis legalization and that branded drug manufacturers were more affected than generic drug manufacturers, likely due to a greater competitive impact from cannabis entry on drugs without any existing competitors.

The study concludes that conventional pharmaceutical manufacturers may benefit from investing in cannabis markets rather than lobbying against them and that regulatory policy should facilitate further research into the risks and benefits of using cannabis for both medical and non-medical reasons.

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Illinois Completes First Cannabis Retail Social Equity Licensing Round

9/02/2022

Illinois completed its first round of social equity licenses on August 19, according to an Illinois Department of Financial and Professional Regulation (IDFPR) press release. The agency said in addition to the 182 social equity licenses granted in July and early August, three more conditional adult-use dispensing organization licenses had been issued for the 2021 license lottery winners.

“Illinois is a pioneer, leading the way in cannabis legalization that is equity-centered. With all 185 conditional licenses now in the hands of social equity applicants, we have reached a tremendous milestone. Now, we look forward to getting these businesses up and running, creating jobs in the communities most harmed by the failed drug war, and cementing ownership in Illinois’ cannabis industry as the most diverse in the nation.” — Gov. JB Pritzker (D), in the release

Forty-one percent of the businesses selected were Black-owned, 7% white-owned, 4% were Latino-owned, and 38% did not disclose their racial make-up. The awardees now have 180 days to find a physical location and complete the remainder of the requirements for an Adult Use Dispensing Organization license. If unable to find a physical location, licensees will be able to request an additional 180 days.

“I am pleased the Illinois Department of Financial and Professional Regulation fulfilled its statutory requirement and issued these 185 conditional dispensary licenses,” Mario Treto, Jr., secretary of the Illinois Department of Financial and Professional Regulation, said in a statement. “The release of these remaining licenses means ownership of cannabis dispensaries in Illinois is now more inclusive and diverse than ever before, and we look forward to taking the next steps together to continue implementing the most equitable cannabis program in the country.”

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SEC Investigating Dan Bilzerian’s Cannabis Company

9/02/2022

The Security and Exchange Commission (SEC) is investigating Ignite International Brands, the Canada-based cannabis company run by social media influencer Dan Bilzerian, the Globe and Mail reports. The company is also under regulatory investigation in Canada.

The company had previously traded on the Canadian Securities Exchange (“BILZ-CN”) but went private on Monday. At its peak in 2019, the company had a market capitalization of more than $750 million, but it was worth about $170 million when it stopped trading in both Canada and the U.S., the report says.

The company pulled out of Canada in October 2021 citing the “government’s excessive restrictions,” the report says.

The SEC on Monday filed a request with a California court to compel Ignite to comply with a subpoena it sent in May. In the court filing, the SEC said Ignite faces multiple investigations in the U.S. Ignite also revealed it is facing “numerous requests from the regulatory authorities” in Canada.

SEC staff attorney Patricia Pei said in the court filing outlined by the Globe and Mail that the agency is seeking information regarding “possible violations of the antifraud provisions of the federal securities laws” by Ignite and that says SEC staff uncovered information “that indicates it may have filed public financial statements that include false or misleading representations” about its revenue in 2020.

“The SEC seeks an order from the court directing Ignite to show cause why the court should not compel it to produce documents as required by the subpoena. The SEC further seeks an order from the court, following its ruling on the order to show cause, directing Ignite to comply fully with the subpoena. The SEC is continuing its fact-finding investigation and, to date, has not concluded that any individual or entity has violated the federal securities laws.” — the SEC in an Aug. 30 statement

Ignite was first subpoenaed by U.S. authorities in May but the company sought a stay of that action, which was denied by the SEC. The agency said it gave the company “multiple accommodations” but Ignite “failed to produce the full set of requested documents.”

The case is listed as Securities and Exchange Commission v. Ignite International Brands, Ltd., No. 2:22-mc-00172

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British Columbia Worker Strike Has Caused 50 Cannabis Retailers to Close

9/01/2022

The ongoing worker strike in British Columbia, Canada has, in part, led to the closure of 50 cannabis shops and about 500 job losses, Jaclynn Pehota, executive director of the Retail Cannabis Council of B.C. (RCCBC), told the National Post. The British Columbia General Employees’ Union (BCGEU), which represents about 33,000 public-service workers across the province, set up picket lines at four BC Liquor Distribution Branch (BCLDB) wholesale and distribution centers earlier this month.

While retail cannabis and liquor stores are not part of the strike, which is over wages, the cannabis division of the Burnaby customer care center is part of the action and, in response, the BCLDB said its cannabis distribution center will neither ship products nor assemble or process orders, which has led to product shortages at B.C. dispensaries.

“We’re going to be looking at between 50 and 70% of private retailers closing their doors in B.C. due to product shortages.” — Pehota to the Post

Pehota added that retailers “don’t have a month’s worth of product on hand, because that month’s worth of product becomes 50% less valuable after 30 days.”

“There was no way for the industry to prepare for what’s happening to them,” she told the Post, “and the failure of this monopoly supply chain means there’s nothing legally they can do to keep their businesses open.”

The store closure and shortage of legal cannabis at the state-run shops are forcing consumers back into the unregulated market, George Smitherman, president and CEO of the Canada Cannabis Council, told the Post. He said that in B.C., legal sales had penetrated about 30% into the unregulated market but that “estimating the size of the illicit market is a very tricky art because actual data collected by governments is decidedly thin.”

In a statement following the start of the strike, BCLBD said it did “not know the extent of any future job action” and could not “speculate on the inventory levels held by wholesale customers nor customer demand and buying behaviors in this dynamic environment.”

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Police Raid Afroman’s Ohio Home, Confiscate Vape Pen & Some Roaches

9/01/2022

The rapper Afroman, 48, legal name Joseph Foreman, posted security camera footage to his Instagram and TikTok pages last week of a raid on his Ohio home by the Adams County Sheriff’s Office. The raid, which took place on August 21, included multiple police vehicles and heavily armed officers carrying automatic weapons, body armor, and a ballistic shield. Afroman was out of town for work at the time of the raid.

“Good thing my kids weren’t home,” Afroman said on one of his Instagram uploads.

“… All of this for a vape pen,” he said.

View this post on Instagram

A post shared by O.G. Afroman (@ogafroman)

In another video, he says police searched through his clothing and found $4,300 he had been paid for a rapping gig in one of his suit pockets, which they confiscated.

Afroman told TMZ Live in an interview that police took “some roaches, a vape pen, and a jar of CBD,” but that he was most upset about the damage to his property.

“I think they thought I had like hundreds and thousands of pounds [of cannabis] or something like that,” he said. “They didn’t have to run up my driveway with AR-15s and all kinds of assault weapons, I would have gladly just given that to them. So I don’t know what’s behind destroying all my property.”

Afroman said after the raid, the Adams County Sheriff’s Office asked him to come down to the station and make a statement. “I need a lawyer — Ben Crump, if you’re listening, I’m trying to get ahold of you,” he said, referencing the well-known American civil rights attorney.

Afroman is best known for his songs “Colt-45” and “Because I Got High.”

End

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