Recall Issued for Flower from One of Colorado’s Largest Operators

3/16/2022

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The Colorado Marijuana Enforcement Division (MED) last week issued a recall for cannabis flower produced by LivWell Enlightened Health due to potentially unsafe levels of total yeast and mold. The enforcement action applies to the indica-dominant Gelato Cake #1 sold as pre-weighed half-ounce packages from December 30, 2021, through January 20, 2022.

“Consumers who have these affected products in their possession should destroy them or return them to the retail store from which they were purchased for proper disposal. Consumers who experience adverse health effects from consuming the product should seek medical attention immediately and report the event to the Marijuana Enforcement Division.” – MED in a press release

According to Westword, Livwell is one of the state’s largest dispensary chains with 19 retail and two medical shops in Colorado.

In a statement issued regarding the recall, LivWell’s VP of Marketing Chris Mapson said the company is “committed to delivering exceptional cannabis products to our customers.”

“We have strict production policies at our facilities to ensure that the products … meet the quality assurance testing standards required by Colorado law. While we serve thousands of patients and consumers every day, complaints are very rare. In January of this year, we received a customer inquiry about a small amount of cannabis flower. We immediately pulled the entire batch from which this originated and self-reported the incident to the Colorado Marijuana Enforcement Division,” Mapson said.

“Molds and other natural organisms are an inherent factor in the production and storage of agricultural products like cannabis. Everything we grow and make is tested by state-licensed, independent laboratories to ensure our products meet the [state’s] standards … for contaminants, including mold and other microorganisms, before they can be shipped to dispensaries and sold to consumers.”

“LivWell stands behind the quality and safety of all of our products. If there are questions or concerns, we encourage customers to reach out to us at info@livwell.com.”

In October 2021, LivWell agreed to a merger with PharmaCann Inc., which closed last month. LivWell Founder and CEO John Lord joined the PharmaCann board of directors following the deal’s completion, saying the agreement marked “the beginning of a new chapter.”

“The depth of experience, best practices, and track record of the combined companies will bring about an even better patient and customer experience,” he said in a statement.

The terms of the deal were not disclosed as both companies are private; however, in an interview with MJBizDaily, cannabis industry consultant Michael Mayes described the merger as “gigantic,” estimating the value in the “hundreds of millions.”

Editor’s note (3/17/22): This article was updated to add the statement by LivWell’s Chris Mapson.

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Survey: More Than One-Third of U.S. Cannabis Companies Not Profitable

3/16/2022

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A recent survey by the National Cannabis Industry Association (NCIA) and Whitney Economics found that 37% of cannabis businesses in the U.S. are not profitable. Of the 396 cannabis businesses around the country that were surveyed, only 42% were found to be profitable while 21% felt their investments were breaking even, according to the survey results.

The NCIA survey highlights some specific challenges facing the industry, like competition from the illicit market and over-taxation. Additionally, lack of access to banking and price volatility were noted as potential stumbling blocks for cannabis entrepreneurs, the report says.

“I think we’re in the business where it’s the toughest and the profit is the hardest to get,” Mike Benziger, a California grower whose family has roots in the wine industry, told the North Bay Business Journal. “When we became an industry driven on price rather than quality, that’s when it became tough.”

Benziger told the Journal the cannabis business is “designed to take big hits,” adding that smaller growers need to “already have money” or be able to make sales “on-site” if they want to survive.

Beau Whitney, the founder of Whitney Economics, described the results as “no surprise.”

“The narrative out there is that everyone is swimming in cash because of cannabis,” he said. “But, for many, unless you have $2.5 (million) to $3 million, you’re not able to cover a loan or rent or health care.”

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Mike Tyson’s Cannabis Company Selling Ear-Shaped Gummies with Chunk Missing

3/16/2022

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Mike Tyson’s cannabis company, Tyson 2.0, is now selling cannabis-infused gummies shaped like ears with bites in them – harkening back to Tyson’s infamous 1997 WBA Heavyweight Championship bout with Evander Holyfield.

The company announced the product release via Twitter on Tuesday.

“Holy ears!” the company wrote in a tweet. “They’re finally here! Go get your Mike Bites now.”

According to the company’s website, Tyson 2.0 products are currently available in California, Colorado, and Nevada.

Tyson and Holyfield had discussed the possibility of the products in a 2019 video.

“People keep asking, ‘How are you gonna forgive somebody that?’” Holyfield said in the video, according to a World Boxing News report. “I say, everything that ever happened, at some point in time, I did it. Mike bit me. I say I bit somebody too. It just wasn’t on TV. I bit a guy in his shoulder. He dropped me, and I didn’t know when you had a concussion, you’ll bite too.”

“You might be in business,” Tyson responded, “because we’re going to make some holey ears. Some edibles [of the ear] that got a bite taken out of ’em.”

“Well, I could do that,” Holyfield responded.

It’s unclear whether Holyfield is receiving a cut of the product sales but the former opponents have worked together before – in 2012 Tyson promoted Holyfield’s barbecue sauce.

“My realdealbbqsauce.com will make u wanna take a bite out of someone’s ear! Ask @MikeTyson – Luv ya bro!” Holyfield tweeted on the 15th anniversary of the championship fight, according to a Delish report.

“@holyfield’s ear would’ve been much better with his new BBQ sauce,” Tyson responded, “check it out realdealbbqsauce.com.”

Tyson was disqualified in the 1997 fight after biting Holyfield’s ear in the third round of the bout. Tyson’s boxing license was also revoked and he was hit with more than $3 million in fines.

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Chenae Bullock: Building Cannabis Operations On New York Tribal Land

3/16/2022

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The New York state cannabis market is projected to grow exponentially in the coming years but while the state is making some social equity considerations, Native American tribes like the Shinnecock Indian Nation are not able to apply for the program.

We recently connected with Chenae Bullock — Founder of Moskehtu Consulting, and Managing Director for the upcoming Little Beach Harvest cannabis dispensary — to discuss her tribe’s plan for a cannabis operation that considers cannabis as a sacred plant. In this Q&A, Chenae discusses the mission behind Moskehtu Consulting, the firm’s impact so far, and how partnerships with large cannabis firms like TILT can benefit Native American tribes. Chenae also discusses how a lack of recognition in state policy has created supply chain issues in Shinnecock territory, shares the vision for Little Beach Harvest’s future, and more!

Ganjapreneur: Why did you launch Moskehtu Consulting? What is the mission of the company?

Chenae Bullock: I launched Moskehtu Consulting because I recognized the lack of business-to-business relationships that both governmental and corporate sectors have with Native American-owned businesses. I recognized there was a lot of business taking place regarding Native Americans without actually including Native Americans in the process. As a Native American who not only has an academic background regarding Indigenous people’s position when it comes to history, social and environmental issues, I have lived these experiences every day. My aim has been to build a start-up that can consult with clients on these matters and act as a steward in the areas of social and environmental issues that affect each and every one of us. The mission of Moskehtu Consulting is to reconnect people to one another, the land and the water.

What kind of consulting projects does Moskehtu accept?

At Moskehtu Consulting we accept projects that are inclusive for people of color at the planning phase. Some of those projects include helping our clients to re-establish or build relationships with local tribal nations, developing communication plans with local Native American tribes. We have also provide cultural programs such as Traditional Ecological Knowledge tours through eco-tourism on canoe tours, plant walks, and other cultural outdoor experiences in an effort to educate on and connect clients with the land and water.

How has your work built recognition for Indigenous peoples in the country?

Since its establishment, Moskehtu Consulting has provided a number of jobs in cultural education, environmental advocacy, social impact campaign strategy, and much more to further combat the disproportionate number of jobs for Indigenous people. Moskehtu Consulting is community-based and is dedicated to supporting the creation and enhancement of job equity and services within the Indigenous communities in this country. This initiative connects Indigenous people with resources to address the needs of their communities, and through our efforts, we build recognition of our communities in the governmental and corporate sectors.

How does the sovereign status of Native American tribes negatively impact tribal members entering the cannabis space?

Although our people technically meet the requirements to be considered a social equity segment, as a sovereign nation we do not receive any of the benefits of the social equity programs the state creates. We also do not receive any of the resources or funding other businesses have access to through the state. This can create a barrier to entry for obvious reasons, which is why many Indigenous communities are looking to partnerships to enter the space.

Could inclusion in social equity measures help more tribes and tribal members start licensed cannabis businesses?

Although tribes are not written in the inclusion of social equity programs, we are considered a social equity group. Therefore, including us in the social equity measures would be extremely helpful to a group that lacks the resources many of the other social equity groups receive because they are included.

Are there any policy changes to the regulation and licensing of cannabis businesses at the city or state level that could better serve the Shinnecock and surrounding tribes?

Since we do not receive any resources or social equity benefits through state programs, what would be most beneficial to us at this time is policy language that ensures that the state will not interfere with our business operations and that allows us to do business with other New York operators across sovereign lines. We’ve been in constant contact with officials since 2015 in an attempt to have clear, black and white language put down on paper that signifies their stance on this. Until the state decides where they stand on the matter, other operators in New York are slightly hesitant to engage in business and sales with us. If we are able to engage with operators outside of the Shinnecock Nation, it will benefit all parties involved by broadening consumer and patient access to quality products, helping to fill the gap where social equity programs fall short, and helping other businesses in the state flourish.

How did you choose TILT as a partner for the Shinnecock Nation cannabis retail store? What is the benefit of working with TILT?

As a sovereign nation that governs ourselves, we have been working toward our entry into the cannabis industry since 2015. We’ve talked with many potential partners over the years, but TILT was the first that felt like the right match for a true, collaborative partnership. With Little Beach Harvest wholly owned by the Shinnecock, we share the same vision for successful operations that will act as an economic engine for our community and create opportunities for years to come. From day one the process has been completely collaborative, with both sides bringing our respective expertise to the table; on the Shinnecock side, our cultural connection to and Indigenous knowledge of the plant as well as consultation on cultural competency as it relates to the business, and on the TILT side, their longtime experience in the cannabis industry ranging from best practices in cultivation to unique business strategy. We both listen to each other and are open to adjusting course if needed in a collaborative way.

Financial resources are a barrier to entry for anyone trying to enter the cannabis industry, and as mentioned earlier, in many ways even more so for Indigenous communities. Not only does our partnership assist with the financial component, but their expertise, knowledge and training as a true partner throughout the process of establishing Little Beach Harvest is invaluable.

Does Little Beach Harvest have setups, grow mediums, and methods established for the cultivation?

Little Beach Harvest will consist of indoor grows. TILT will be providing their expertise and guidance in terms of cultivation methods and techniques.

Is there a philosophy for what kind of products Little Beach Harvest will source for the retail store?

Our vision for Little Beach Harvest is for it to be more than just the typical dispensary experience people are used to; our goal is to make it a retail destination for people to not only learn about cannabis and its relation to Indigenous communities, but also who we are as a people. As stewards of the land and water, what is most important to us is that we do not lose sight of cannabis as a sacred plant and medicine. We are working with other Shinnecock-owned hemp brands and cannabis adjacent businesses to incorporate them into Little Beach Harvest, as well as with TILT to ensure the brands we partner with and the products we carry are true to our values and vision.

What kind of educational activations would you like to feature in the shop?

Our ambitions are to make our Little Beach Harvest a retail destination location on Shinnecock Territory that is surrounded by the Hamptons. We’ve found there has been an overwhelming amount of interest in not only learning about the sacred cannabis plant, but to learn more about our Indigenous culture as well. We are still in the planning stages and haven’t confirmed all the specifics just yet, but our Dispensary and Wellness Lounge will provide the experience for both educational opportunities.

Is there an opening date for Little Beach Harvest?

We currently do not have a specific opening date. We hope to begin retail sales of products grown at the facility by the end of this year or early 2023. If we are able to engage in business with other New York operators over sovereign lines, that could enable us to open sooner with retail sales of products from our partners.

Thank you, Chenae, for answering all of our questions! Visit MoskehtuConsulting.com and LittleBeachHarvest.com to learn more.

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New Jersey’s Rider University Launches Cannabis Studies Program

3/16/2022

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Rider University, a private college in New Jersey, will offer a cannabis studies certificate program in the fall semester which will be open to anyone interested in a cannabis industry program with no prerequisites or previous degrees required.

The program, 100% online, will include courses on accounting and finance, communications and marketing, sales, management, public policy, law, and research and development, Dr. Victor Thompson, chair of the Department of Sociology and Criminology, said in a press release. Dr. Thompson added that the “certificate will prepare students for roles that go beyond the budtender.”

Dr. Sarah Trocchio, assistant professor of sociology and criminology, explained that college staff and faculty “want as many people as possible to have access to this program to help build their careers” in the cannabis industry.

“As cannabis legalization continues to expand, our students will be able to enter the field with the skills, experience and connections needed to succeed.” – Trocchio in a statement

In the fall 2020 semester, Trocchio led a special topics course called “Reefer Madness: From Panic to Profit” wherein she and the class conducted a survey of New Jersey residents regarding their attitudes about cannabis legalization, personal use, and social justice implications prior to that year’s election. That research will appear as a poster presentation during the CannX conference in Tel Aviv, Israel.

The program explores the biological, legal, ethical, business, and practical aspects of the cannabis industry through four courses and the capstone course is taught by an industry professional, which will allow students to gain experience and learn about future internship and job opportunities, the college said.

New Jersey legalized cannabis in 2018. Late last month, Gov. Phil Murphy (D) suggested that adult-use sales in the state could begin “within weeks.”

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Dutchie Partners with LPP to Help Nonviolent Cannabis Offenders Reenter Society; Pledges $1M Donation Match & Contributes $100K

3/15/2022

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Dutchie’s donation powers the Last Prisoner Project to give 400 new grants to help formerly incarcerated individuals reenter society

BEND, Ore., March 14, 2022 /PRNewswire/ — Dutchie — the technology platform powering cannabis commerce — today announced a new partnership with the Last Prisoner Project, a nonprofit dedicated to undoing the harms of the failed war on drugs and releasing people who are imprisoned on cannabis charges. The wide-reaching partnership will include coordination and support across several of Last Prisoner Project’s efforts, including expungement of criminal records, re-entry support, criminal justice public policy reform, industry event coordination, and technological avenues to exponentially increase charitable contributions. To kickstart the partnership, Dutchie announced today that they donated $100,000 to Last Prisoner Project and pledged to match $1 million in donations from their dispensary partners and cannabis consumers.

“Dutchie is committed to having a positive impact on the future of the cannabis industry and the broad benefits it is bringing to society,” said Ross Lipson, CEO & Co-Founder of Dutchie. “We cannot erase past injustices that people and communities have experienced as a result of decades of failed cannabis policy. But, we can work to bring restitution to those who have been harmed by supporting their release from incarceration and giving them a new lease on life. We are committed to advancing our shared vision to release those behind bars for non-violent cannabis offenses and we’re excited to leverage the Dutchie ecosystem to help scale our impact.”

While cannabis is one of the fastest growing industries in the world, too many people, and primarily people of color, remain behind bars for nonviolent cannabis offenses. This is disproportionately true for Black Americans, who are 3.73 times more likely to be arrested for cannabis. Dutchie aims to create safe and easy access while advancing the positive change cannabis brings to the world. That is only possible if the industry and society put equity and justice at the center of propelling the industry forward.

“We are excited to begin our partnership with Dutchie and grateful for their generous support of our mission. Together, we will redress the harms of cannabis prohibition by advancing crucial criminal justice and drug policy reforms,” said Mary Bailey, managing director of Last Prisoner Project. “More than 15.7 million Americans have been arrested for nonviolent cannabis crimes in the last two decades. Some of whom are serving life sentences without parole. Together, we’ll help give people and families their lives back.”

In 2019, cannabis industry leaders, criminal and social justice advocates, policy, and education experts founded the Last Prisoner Project out of the belief that no one should remain incarcerated for cannabis offenses. The Last Prisoner Project is committed to freeing every last prisoner of the unjust war on drugs, starting with the estimated 40,000 individuals imprisoned for cannabis.

Dutchie is committed to a long and fruitful partnership with the Last Prisoner Project to advance needed criminal justice reforms. In addition to this partnership, Dutchie’s social equity program continues to support BIPOC and women-led dispensaries through training and marketing stipends. Dutchie is also a member of the Minority Cannabis Business Association. In the coming months, Dutchie will leverage our network of thousands of dispensaries and partners to make an even greater impact as part of the company’s commitment to the partnership.

Dutchie aims to advance the positive societal change cannabis brings to the world and is the cannabis technology platform powering cannabis commerce, streamlining dispensary operations, and providing safe and easy access. To learn more, visit: https://business.dutchie.com/.

About Dutchie:
Dutchie is the fastest-growing cannabis technology platform powering cannabis commerce, streamlining dispensary operations, and providing safe and easy access for consumers. Powering over 5,000 dispensaries throughout the U.S. and Canada and facilitating over $14 billion in sales annually, Dutchie is a one-stop-shop, providing solutions for point of sale, ecommerce, seamless payments, and more. Dutchie is currently valued at $3.75 billion.

Dutchie aims to open minds to the positive societal change that cannabis brings to the world. Dutchie’s solutions directly serve dispensaries and consumers alike, garnering recognition as one of Fast Company’s 10 Most Innovative Companies in North America and LinkedIn’s Top 50 Startups for two-years running. To learn more, please visit: https://dutchie.com.

About Last Prisoner Project:
The Last Prisoner Project (LPP) is a nonprofit organization dedicated to cannabis-related criminal justice reform with the goal of releasing every last cannabis prisoner and helping them rebuild their lives. As the United States moves away from the criminalization of cannabis, giving rise to a major new industry, there remains the fundamental injustice inflicted upon those who have suffered under America’s unjust policy of cannabis prohibition. Through intervention, advocacy, and awareness campaigns, the Last Prisoner Project works to redress the past and continuing harms of these inhumane and ineffective laws and policies. Visit www.lastprisonerproject.org or text FREEDOM to 24365 to donate and learn more.

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Russian Oligarch Who Pursued U.S. Cannabis Licenses Charged with Making Illegal Political Contributions

3/15/2022

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Andrey Muraviev, a 47-year-old Russian oligarch who set out in 2018 to acquire U.S. cannabis industry licenses, was indicted this week and charged with making illegal political contributions as a foreign national. Muraviev — who is currently believed to be at large in Russia — was also charged with conspiring to make political contributions as a foreign national in the names of straw donors.

According to a release by the Southern District of New York U.S. Attorney’s Office, Muraviev allegedly conspired with Lev Parnas, Andrey Kukushin, and Igor Fruman to give up to $1 million in foreign funds as political contributions to candidates and campaigns that would benefit his business interests. The donations were meant to curry favor with state and federal candidates in Florida, Nevada, and Texas who could later help Muraviev and his co-conspirators acquire cannabis industry licenses.

“As alleged, Muraviev, a Russian foreign national, made illegal political contributions and conspired with Parnas, Kukushkin and Fruman to obscure their true source. The money Muraviev injected into our political system, as alleged, was directed to politicians with views favorable to his business interests and those of his co-conspirators.” — FBI Assistant Director-in-Charge Michael J. Driscoll, in a statement

Parnas and Kukushkin were found guilty for their involvement in the scheme last October while Fruman pled guilty in January. Parnas and Fruman are both ex-associates of Rudy Giuliani, the former Mayor of New York City and personal attorney for former President Donald Trump (R).

In 2018, Parnas was responsible for leaking a recording of then-President Trump saying that cannabis use reduces one’s IQ score at a family dinner party.

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Companies Accuse DEA of Delaying Application Process for Manufacturing Cannabinoid Pharmaceuticals

3/15/2022

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Two cannabis companies are accusing the Drug Enforcement Administration (DEA) of delaying approving applications for bulk manufacturing registration since it opened the process in 2018. MMJ International Holdings said its partner MMJ BioPharma Cultivation had submitted its application four years ago, but the process has been “delayed for years for reasons unknown.”

MMJ International Holdings, in collaboration with MMJ BioPharma Cultivation, has been manufacturing gelatin capsule medicines based on cannabis compounds with plans to investigate the products in clinical trials as potential treatments for multiple sclerosis and Huntington’s disease. The companies claim the DEA “has negatively impacted the progression of the drug development for patients” who suffer from the conditions.

The companies point out that the statutory mandate of the DEA is security and divergence and to facilitate the manufacturing of pharmaceuticals to help patients suffering from chronic diseases.

Elio Mariani, Ph.D., MMJ International’s executive responsible for research and development, described the delays as “unprecedented.”

Duane Boise, CEO of MMJ International, said that the company believes that their oral gel cap “will be FDA-approved as a safe and effective drug.”

“MMJ’s clinical trials will provide patient dosing, safety, and efficacy data to the FDA to prove that cannabis can treat essential tremors, a neurological disorder that causes involuntary shaking.” – Boise in a press release

MMJ International in 2019 was given DEA clearance to import cannabis-based products into the U.S. from Canada, a process that required the cooperation of multiple governmental agencies, including the U.S. Food and Drug Administration, the DEA, and Health Canada, the company said.

According to MMJ International, to date five approved entities are currently listed on the DEA website but none are manufacturing a pharmaceutical, such as MMJ International, with filings with the FDA to perform clinical trials.

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Georgia County Sued By Companies Selling Delta-8 Products

3/15/2022

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In a February 22 raid on Elements Distribution — a vaping and smoke shop distribution center in Norcross, Georgia — law enforcement officers seized about $2 million worth of product but did not make any arrests or file charges, CBS46 reports. Additionally, Elements said they have always run their business legitimately and continue to do so, and that they have been paying taxes to the county on the very same products that were seized.

Video of the raid posted on Twitter shows more than a dozen officers dressed in riot gear with weapons drawn entering the company’s warehouse.

“Our facilities were illegally raided and we still await the response from the Gwinnett County DA’s office to provide us with a probable cause for the raid,” said Ali Imran, owner of Elements Distribution, in an email to Ganjapreneur.

The officers were reportedly on the hunt for delta-8 THC products, which many experts consider to be legal in the state but apparently not the Gwinnett County District Attorney, whose enforcement actions have spurred a lawsuit filed on behalf of multiple Georgia businesses selling delta-8 THC products.

The Georgia Hemp Farming Act, which was passed in 2019, allows products derived from hemp that contain no more than 0.3% delta-9 THC to be sold legally but does not mention delta-8. Gwinnett County Deputy Chief Assistant District Attorney Brandon Delfunt argues that delta-8 products are outlawed under the hemp law. The lawsuit is filed against the county.

“The issue is that delta-8 and delta-10 are not always derivatives of hemp products and even if they are derivatives of hemp products, the legislature was very specific that hemp is defined as something that contains delta-9 THC 0.3 or less.” – Delfunt to CBS46

Tom Church, a trial attorney with Pate, Johnson & Church who is representing the retailers, said he doesn’t believe the issue is a “gray” area in the law.

“The hemp bill basically legalized all cannabinoids, all extracts,” he said in the report, “unless we’re talking about delta-9 THC.”

Editor’s note: A previous version of this article incorrectly stated that Elements Distribution was directly involved with the lawsuit against Gwinnett County but we were informed this was a false interpretation. We regret the error.

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Illinois House Passes Bill Protecting Employees from Termination for Cannabis Use

3/15/2022

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Illinois employers are skeptical about a bill passed by the state House of Representatives that would prohibit them from firing employees for failing drug tests for cannabis, the Chicago Tribune reports. The measure still requires Senate approval but Todd Maisch, president of the Illinois Chamber of Commerce – which agreed not to oppose the legislation – said “nobody should be happier about [the bill] than trial lawyers.

“This is going to lead to litigation,” he told the Tribune, “there’s no doubt about it.”

The measure underwent two amendments to get the Illinois Sheriffs’ Association and Illinois Manufacturers’ Association to drop their opposition and take a neutral stance. However, Julie Schauer, board vice president of Parents Opposed to Pot, called the proposal “a breach of the legislators’ responsibility to public safety” and predicted that if the measure is enacted it would lead to more workplace accidents and higher workers’ compensation and insurance costs.

Under the legislation, employers would be prohibited from terminating or refusing to hire someone based on a positive test THC unless the worker shows signs of impairment or tests higher than the threshold for driving under the influence, which is 5 nanograms per milliliter of blood, or 10 nanograms per milliliter of saliva or urine. Employers would still be able to set zero-tolerance levels for workers in safety-sensitive positions such as law enforcement or firefighters and federal workers or contractors would not be covered under the regime as they are prohibited by federal law from using cannabis.

Other workers that would be prohibited from cannabis use would include those who carry a firearm; those who perform medical procedures or emergency services; those who work with hazardous materials or drugs; those who work with heavy machinery, aircraft, watercraft, or motorized vehicles; and those who perform critical services and work with critical infrastructure, the report says.

State Rep. Bob Morgan (D), the bill’s sponsor who is also an attorney who does cannabis consulting, said the reforms would allow people, especially medical cannabis users, to use a legal product on their own time “and not fear losing their job.”

The measure was approved 61-41 on March 3, mostly along party lines with Democrats in support and Republicans opposed. The measure is currently in the Senate Assignments Committee.

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Vermont Bill Would Expand Crimes Eligible for Expungement

3/14/2022

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A bill introduced in Vermont would expand the number of criminal offenses eligible for expungement in the state including low-level drug crimes, VT Digger reports. The measure would also streamline that process by creating a “one-track” system to clear criminal records — including some felonies — covered under the legislation.

The proposal includes all misdemeanor convictions, except for violent crimes such as sexual crimes against children and domestic violence. Under current state law, expungement of charges makes them disappear while sealing allows access to those records only for specific purposes, the report says. The bill would make the sealing of records more like expungement by narrowing the reasons those records could be accessed and the time period the access would be allowed.

The law would not allow a record to be sealed until a person has finished their sentence, plus an additional three years for most misdemeanors and seven years for felonies, according to the report.

State Rep. Maxine Grad (D), the chair of the House Judiciary Committee and bill sponsor told VT Digger that the proposal could help individuals with criminal records obtain better jobs, housing, and access to educational opportunities once their records were expunged or sealed.

“I think it’s an important workforce development issue. It removes a major barrier for people.” — Grad to VT Digger

Vermont Legal Aid attorney Mairead O’Reilly told VT Digger that the bill is “important because it provides greater access to record clearance for folks who have served their sentence and paid their debt to society and really need and deserve to be reintegrated into our community.”

Vermont Attorney General TJ Donovan explained that the bill’s exceptions for opening sealed records are overly broad and that the bill’s mechanisms to make sealing more like expungement don’t go far enough. He said expungement is “better for the Vermonter.”

“You want to give Vermonters certainty,” he said in an interview with VT Digger. “I always preferred expungement. I’m certainly also willing to compromise.”

The measure has already been approved by the House Judiciary Committee and Grad said that she expects the bill would pass the full House. It is currently in the House Appropriations Committee for consideration.

 

 

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Jones Soda’s Cannabis Brand Expected to Launch in California April 1

3/14/2022

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Jones Soda has unveiled its cannabis brand, Mary Jones, which will include cannabis-infused sodas, gummies, and syrups, CNBC reports. The brand will launch on April 1 in California.

Jones Soda marketing chief Bohb Blair told CNBC that while the company is a “small player in soda” they will be “the biggest national player when it comes to a recognizable [consumer-packaged goods] name in cannabis.”

“If we crack it in California, we’re going to do gangbusters as we go through the Midwest and East.” – Blair to CNBC

The company announced it was planning a cannabis-infused product line last July. CEO Mark Murray said the firm has “been putting all of these pieces in place” since the announcement. The Mary Jones branding will use the same font as the Jones soda brand, but the “N” will appear backward.

“…We fully expect the brand to deliver solid strategic growth for the company,” he told CNBC.

“A lot of the cannabis category is leaf, but that’s the legacy part of the category, the mature part,” Blair said in the report. “If you look at the new consumer to cannabis, the people who want to bring it to a party or have it in a meal, a lot of them are turning to beverages and edibles. And it turns out those are not as easy to make.”

The initial launch will include four product lines: 12-ounce bottles of soda infused with 10 milligrams of cannabis; 16-ounce cans of soda infused with 100 milligrams of cannabis; syrup infused with 1,000 milligrams per bottle designed to mix with other beverages or on food; and soda bottle-shaped gummies infused with five milligrams of cannabis.

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TerrAscend Completes $545M Acquisition of Gage Growth Corp

3/14/2022

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Canadian cannabis company TerrAscend last week completed its acquisition of Michigan’s Gage Growth Corp in a $545 million deal. TerrAscend now operates in five U.S. states and operates seven cultivation and processing facilities and 25 dispensaries throughout the U.S. and Canada.

The deal was finalized on March 10.

Jason Wild, executive chairman of TerrAscend, described the deal as a “defining moment” for the company, as it combines “two leading vertically integrated operators with proven cultivation and manufacturing expertise, deep portfolios of proprietary flower strains, and top-selling brands across our core markets.”

“I look forward to working with the talented Gage team as we integrate and align our cultivation, retail, and operational practices to continue providing our patients and customers with best-in-class product offerings and retail experiences.” – Wild in a statement

Gage has exclusive licensing partnerships in Michigan with Cookies, Blue River, Pure Beauty, and Khalifa Kush. The deal will give TerrAscend access to those brands.

The combined company will operate or manage seven cultivation facilities, including three facilities in Michigan, in addition to Gage’s multiple contracts grow agreements, the companies said in a press release. The combined company’s retail network is expected to reach 40 stores by the end of 2022, including 25 currently operational dispensaries across five states with Gage managing 11 dispensaries in Michigan and one Cookies dispensary in Canada, in addition to TerrAscend’s 13-store footprint in California, New Jersey, and Pennsylvania.

Gage shares have been halted after closing and delisted by the Canadian Securities Exchange.

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Social Equity Applicants Will Get New York’s First Adult-Use Cannabis Licenses

3/11/2022

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New York Gov. Kathy Hochul (D) on Thursday announced that the first adult-use retail licenses in the state will be made available to individuals with prior cannabis-related offenses. The program, called the Seeding Opportunity Initiative, will give the first licenses to those social-equity applicants that also have a background in owning and operating a small business.

In a press release, the governor’s office said that the initiative, paired with a recently approved bill allowing the state’s hemp farmers to grow cannabis for the adult-use market, could make sales possible in the state before the end of the year. According to the release, the state Cannabis Control Board on Thursday approved a license application for a hemp farmer to begin cultivating THC-rich cannabis in the spring.

“New York State is making history, launching a first-of-its-kind approach to the cannabis industry that takes a major step forward in righting the wrongs of the past. The regulations advanced by the Cannabis Control Board today will prioritize local farmers and entrepreneurs, creating jobs and opportunity for communities that have been left out and left behind. I’m proud New York  will be a national model for the safe, equitable and inclusive industry we are now building.” —Hochul in a statement

Cannabis Control Board Chair Tremaine Wright said that the state’s adult-use law “sets a high goal for creating an equitable industry that puts New Yorkers first.”

The Seeding Opportunity Initiative puts us on a path for achieving that goal,” she said in a statement, “and hopefully models a way forward for reaching those goals while building a stable market.”

The initiative includes conditional adult-use dispensary licenses for social-equity applicants and those conditional licenses for hemp farmers, in addition to the $200 million social equity investment program outlined by Hochul in her 2023 Executive Budget.

The 2022 potential start date is unexpected, as Wright had previously indicated that adult-use licenses would not be awarded until at least the spring of 2023. According to the governor’s office, applications for the priority licenses will open in the summer and the first licenses are expected to be distributed by late summer or early fall.

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Kentucky Committee Approves Medical Cannabis Bill

3/11/2022

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The Kentucky House Judiciary Committee on Thursday passed a Republican-sponsored medical cannabis bill which has the support of the Senate Judiciary Committee Chair, Sen. Whitney Westerfield, who previously opposed the reforms, WFPL reports. A similar bill was passed by the House in 2020 but was never taken up by the Senate.

State Rep. Jason Nemes, the bill’s sponsor, said he opposes adult-use reforms but that “the debate is over, with respect to whether or not medical cannabis helps people.”

“I don’t think there’s anybody, even the staunchest opponents, who say it doesn’t help some people.” – Nemes via WFPL

In a statement posted to Twitter, Westerfield said that while he has concerns about “the risk of increased access” to cannabis among youth and young adults and the “precedent” of ignoring federal law, he’s ready to support medical cannabis access in Kentucky.

“I’ve heard too many stories, in my district and out, from those long-suffering and their loved ones left behind, that marijuana brought comfort and relief when nothing else worked,” he said. “I imagine what sons have done to obtain marijuana for their dying mothers, or what parents have done for a child struggling with a severe seizure disorder.”

The bill does not allow smokable forms of cannabis but would permit patients with multiple sclerosis, chronic pain, epilepsy, and nausea to access cannabis products. State Rep. Kim Moser (R) was the lone ‘no’ vote on passing the bill, which was approved by a 15-1 vote.

“If the FDA would take a stand on this and actually make it a medicine like they do any other natural product, then we wouldn’t have to change 39 statutes and create this bureaucracy,” she said during the debate.

A 2019 poll from the Foundation for a Healthy Kentucky found 90% of Kentuckians support medical cannabis reforms in the state, including 95 percent of Democrats, 92 percent of independents, and 90 percent of Republicans.

The bill moves next to the full House for consideration.

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Colorado Bill Would Require Public Cannabis Industry Reporting

3/11/2022

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Colorado legislators have introduced a bill to require more reporting from cannabis businesses and lessen their influence on the rulemaking process, according to a Westword report. The measure requires the Colorado Marijuana Enforcement Division (MED) to track and publish online all underage sales violations, contaminated product recalls, and reported illicit market activity.

Supporters say the bill will help protect Colorado children but cannabis advocates fear the bill is an attempt to further restrict the nation’s first adult-use market, the report says.

“It doesn’t change regulation. It’s about making sure the MED has the resources they need to do these (underage) checks,” bill sponsor Sen. Chris Hansen (D) said. “It’s the availability and accessibility [of violation information] and putting it on par with what we’re doing in tobacco and alcohol.”

Although MED underage checks found few violations in the past three years — in 2022 the pass rate was 95% and 97% in 2021 and 2019 — the number of checks fell from 604 in 2019 to 104 in 2021 to 80 in 2022, which concerns lawmakers. The MED says the drop was due to “COVID-related impacts,” and the department “intends to increase the number of underage sales checks to align more closely with prior years.”

The bi-partisan group of sponsors wants that increase written into law, which would require every dispensary in Colorado to get at least two underage sales checks per year. Colorado has over 1,000 licensed dispensaries but some are not operational, Westword reports.

Peter Marcus, communications director for Boulder-based dispensary chain, Terrapin Care Station, told Westword the bill “does nothing to increase accountability in terms of access for children.” He believes “responsible messaging works,” pointing out studies that show fewer kids are using cannabis since legalization in the state. He also calls into question the wisdom of using minors in sting operations for an over-21 product.

Additionally, the proposal asks regulators to curtail the amount of influence that the cannabis industry has on the state’s rule-making process. The proposal would also open a bidding process to find a new vendor to manage the state’s seed-to-sale tracking system, which is currently administered by Meta-C.

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Two Oregon Counties Denying Hemp Licenses After Declaring State of Emergency

3/11/2022

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Two Oregon counties have declared a local state of emergency regarding cannabis, allowing them to place moratoriums on issuing new hemp licenses, the Mail Tribune reports. The orders in Jackson and Josephine counties are retroactive to January 1 and all applications submitted since the New Year will be denied.

Jackson County Senior Deputy Administrator Harvey Bragg told the Mail Tribune that county officials “need to kind of get a time-out” so they can catch up on applications and enforcement. Last year, state inspectors found 53% of licensed hemp grown in Jackson and Josephine counties were illegally growing cannabis under the guise of hemp, the report says.

Throughout 2021, law enforcement agencies in Southern Oregon have uncovered a host of issues at illegal cannabis grows, including workers living in poor conditions, water theft in a region hit hard by drought, improper use of pesticides and other chemicals, garbage, electrical hazards, and evidence of drug trafficking. Officials believe organized crime networks are backing many of the illegal cultivation sites.

A Mail Tribune investigation found that law enforcement agencies in Jackson, Josephine, Klamath, and Douglas counties found illegal cannabis with an estimated value of at least $2.78 billion in the unregulated market. In all, the state sold $1.2 billion worth of cannabis through licensed shops last year.

A recently approved Oregon law requires the state to deny any applications for new hemp licenses in counties that declare a state of emergency related to cannabis. Other bills passed in the state to deal with problems related to cannabis include funding to organizations that help exploited workers and a ban on hauling water to unlicensed grows.

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Congress Continues to Block D.C. Cannabis Sales Despite Democrat Majority

3/10/2022

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The longstanding congressional rider to prevent Washington D.C. from developing its framework for adult-use cannabis sales was included in this year’s omnibus spending package, according to a Politico report. The impediment’s inclusion came as a surprise to D.C. activists when the bill was released on Wednesday — named after Republican Rep. Andy Harris, the “Harris rider” had been absent in previous House and Senate Democratic budget proposals but was ultimately included in the budget by President Joe Biden (D).

Since D.C. residents voted overwhelmingly in favor of legalizing adult-use cannabis in 2014, Congress has refused to let the nation’s capital create a regulated marketplace. As it stands, residents can possess, grow, and gift various amounts of cannabis, which has blossomed into a so-called “gray market” where vendors sell other products and gift cannabis with each sale.

Mayor Muriel Bowser (D) and the Washington D.C. City Council have attempted to regulate the industry but were stymied each time by Congressional inaction. Local lawmakers say they are looking for a workaround to make the gray market legal.

In a statement, U.S. Cannabis Council (USCC) CEO Steven Hawkins said the organization is “deeply disappointed by Congress’ failure to act on cannabis reform in this year’s spending bill.”

“Congress had been poised to make real progress, including clearing hurdles put in place by Rep. Andy Harris which prevent the District of Columbia from implementing regulated cannabis sales following a successful legalization referendum. This created a harmful underground market that operates without any standards or safeguards and is at odds with the will of local voters.” – Hawkins in a press release

Toi Hutchinson, President and CEO of the Marijuana Policy Project, said, “We are very disappointed that Congress continues to prevent residents of D.C. from regulating cannabis despite their urgent and repeated requests for reform. Instead, Congress is forcing the District to maintain a gray market in which cannabis can be legally possessed and consumed by adults, but it cannot be legally sold, regulated, or tested. This places consumers at risk, and entrepreneurs who live in this minority-majority community are denied the ability to open businesses that are available in every other legal cannabis jurisdiction.”

The omnibus spending package also failed to extend legal protections to adult-use cannabis programs in states that have approved the reforms. The protections, similar to those granted to state medical cannabis programs since 2014, made it out of the House but were ultimately removed in the Senate’s version of the bill.

Senate Minority Whip John Thune told TIME he expected the bill would be passed quickly in a bipartisan vote, partly because the package contains $14 billion in humanitarian aid to assist with refugees and defense capabilities in Ukraine.

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Senseon by Accuride: Elevating the Standards for Cannabis Cabinet Security

3/10/2022

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Cannabis stores face a number of potential security threats ranging from smash and grab robberies to employee theft. A good security plan includes multiple tools like cameras, guards, and locks. Senseon Secure Access by Accuride provides aesthetically pleasing, invisible, industrial-strength security locks for cabinets in retail stores. Their systems are highly flexible and can be installed during a new build or in already established cabinetry.

Senseon is new in the cannabis industry — its parent company Accuride, however, has been developing hardware for cabinetry for over 60 years.

“You may not have heard of Senseon, but when it comes to cabinetry hardware, we invented it,” said Director of Sales Jeff Shelby. “So have the confidence that this product will work in your fixtures because all of our products are built to the industry standards which we helped set some 60 years ago.”

Senseon locks can be easily retrofitted into existing cabinets but their locking drawer slides are most secure when installed by the millworker. The locks can be affixed at the side, on the bottom, or on the back of the drawer. Senseon uses RFID technology that makes it a highly customizable, touchless, and invisible locking system.

Employees are given an RFID card attached to their name that grants access to the drawer. If the client opts for the top-tier Senseon Plus system, it also tracks the personalized activity of the drawer for management. With this personalized activity, dispensaries are able to manage their business more intelligently, understand which products generate the most interest, identify which employees are more productive, and better understand the flow of customer traffic.

Additionally, Senseon Plus includes dual authentication options, which require a specific combination of cards to be present to access a specific drawer. With high turnover, it can be frustrating to deal with lost keys or, worse, an employee who walks off with the keys when they quit. With Senseon, administrators can grant and remove access using remote technology so businesses can remain compliant even if a key leaves the building, whether due to human error or malicious intent.

Most cannabis retailers are required to submit a security plan to their respective regulatory bodies as part of the industry’s rigorous licensing process. Ideally, retailers should partner with Senseon during the application process to help create the most robust security plan possible.

Senseon brings experience to the table from working on other projects that are easily applicable to cannabis retail, like jewelry and cell phone stores. In fact, national cell phone store chains have served as a valuable case study in the consumer shopping experience and inform how access to Senseon’s control systems assists with loss prevention, Shelby said. This experiential knowledge provides valuable insight at the blueprint stage of a dispensary buildout — both in terms of security plans and for mapping the customer journey.

When creating a security plan for cannabis dispensary clients, Senseon will cover the whole project from start to finish even if its scope covers multiple months. They build security plans directly into the store plans so it’s easy to submit within the application packet. This active approach is essential for ensuring that no security concerns are overlooked.

Lastly, the company prioritizes being hands-on and they’re building an ecosystem around that philosophy. They keep a tight network of millworkers, contractors, and architects to provide quality referrals to their clients. Having that network available to clients in the beginning phases of building their store works to everyone’s advantage — the shop owner gets access to experts who get the job done well, talented tradespeople get more business, and Senseon can trust that their hardware is installed correctly.

“The stronger we all make the industry, the better the industry is going to benefit all of us long term. We need advocates of our product but we realize this is an industry where we’re stronger together than we are apart,” Shelby said.

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Michigan Bill Would Remove Cannabis from State Drug Schedule

3/10/2022

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A bill introduced in Michigan would remove cannabis from the state’s drug schedule, where it remains a Schedule 1 substance despite the state passing adult-use reforms in 2018, MLive reports. Democratic state Rep. Yousef Rabhi, the bill’s sponsor, said cannabis’ placement as Schedule 1 can have negative effects on employment, child guardianship, housing, and criminal punishment.

“Cannabis is still a schedule 1 substance. Schedule 1 is the highest, most criminalized on the list of drugs. Why? It’s legal, we’re using it medically, there’s adult use in the state that’s been approved by voters and yet we’re still listing it as a schedule 1 substance.” – Rabhi via MLive

The measure is named after poet and cannabis activist John Sinclair. Sinclair, 80, has advocated for cannabis legalization for more than 50 years. In 1969, he was sentenced to up to ten years in prison after being arrested for possession of two joints, which sparked a protest rally at Crisler Arena in Ann Arbor on December 10, 1971, which featured a performance by John Lennon and Yoko Ono, which contributed to the poet’s release from prison, the report says.

Sinclair, along with NORML, unsuccessfully sued Michigan in 2019 to remove cannabis from the state’s drug schedule with the Court of Claims determining that legalization of a substance under certain circumstances doesn’t mean it can’t also be a controlled substance.

Rabhi was optimistic about the bill’s chances, contending that removing cannabis from the schedule “is not a partisan issue.”

“We’ve had several meetings with our Republican colleagues to try and get some movement on this and we’re going to keep that effort going,” she said in the report. “Republicans and Democrats, both, are cannabis users. It’s not a partisan issue and it shouldn’t be.”

The bill is currently in the House Committee on Regulatory Reform.

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Connecticut Bill Aims to End Cannabis ‘Retail Gifting Events’

3/10/2022

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Cannabis advocates in Connecticut are pushing back on provisions in a bill that would impose a $10,000 fine and up to a year in jail for gifting cannabis, CT News Junkie reports. Democratic Rep. Michael D’Agostino, the co-chairman of the Legislature’s General Law Committee, said the provisions are not intended to prohibit residents from giving cannabis to friends and family, rather stop “retail gifting events,” pointing to a Tupperware party as an example where cannabis was used as currency.

“‘Instead of cash, bring cannabis,’ and that’s the transaction. That would be prevented versus … your friends are coming over for a book club and you bake cannabis brownies. Have at it. The former would be prevented. The latter would not.” – D’Agostino, during the hearing, via CT News Junkie

During the hearing, lawmakers heard opposition from the public, including from Douglas Moore, who was born without arms and legs, lives on a fixed income, and relies on cannabis gifts from friends and family.

“For me to be actually a normal person like all y’all, I need this gift,” Moore said during his remarks. “So my question is: are you going to arrest me?”

D’Agostino responded that, as drafted, the law would not ban that type of gifting.

“It’s meant to target really what are essentially commercial transactions,” he said.

Michael DeLauro, a retired state worker who has lupus and a form of epilepsy, said cannabis helps treat his conditions better than traditional medications and urged D’Agostino to attend such gifting events to get a better understanding of the community involved.

“If you stop these types of events happening, you’re also going to stop the type of generosity and the type of community spirit that happens at these types of events.” DeLauro testified during the hearing. “It’s not simply eliminating a commercial transaction. I’ve thought about it and I’m not really sure what the law does other than protect commercial interests.”

The measure also includes a proposal to ban cannabis advertising on billboards in Connecticut and eliminate a provision that prohibits a municipality from granting zoning approval for more retailers or micro-cultivators than a number that would allow for one retailer and one micro-cultivator for every 25,000 residents of the municipality.

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South Dakota Fails to Ban Medical Cannabis In Schools & Public Parks

3/10/2022

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A South Dakota bill that would have restricted medical cannabis use from preschools, public and non-public school property, and any outdoor public recreation areas failed to pass the state Senate in a 20-12 vote, KELO reports. The measure would have also eliminated the authority of the state Department of Education to set guidelines for medical cannabis use in schools and allow individual schools to ban its use entirely.

Republican state Sen. David Wheeler said that the Education Department had already spent considerable time developing rules around medical cannabis in schools and that the measure would have thrown all of that out.

“…And then we’re going to treat medical marijuana differently than we treat every other drug, because now schools can just say ‘no, we’re not going to allow you to use this.’” – Wheeler via KELO

Republican state Sen. Jim Stalzer said the state’s medical cannabis law, which was approved by voters in 2020, requires schools to allow medical cannabis use, and the proposal gave both public and private schools the choice of whether to opt-out of those rules.

Lawmakers in South Dakota have been eyeing changes to the state’s medical cannabis law, which was approved by 70% of voters in the state. Last month, senators voted 25 to 10 to strip affirmative defense provisions from the law.

Affirmative defense provisions allow patients caught by police possessing cannabis products to get out of the charges by demonstrating a medical need for cannabis, even if they don’t yet have their medical card.

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Michigan Cuts Cannabis Application Fees in Half

3/09/2022

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Michigan’s Marijuana Regulatory Agency (MRA) has implemented new administrative rules that change application fees and processes in the state’s adult-use and medical cannabis systems. The rule reduces fees for cannabis licenses from $6,000 to $3,000 and removes renewal fee tiers for both medical and adult-use licenses.

New and renewal licensees must now have cannabis liability insurance and Class A cannabis microbusinesses can now buy cannabis concentrates or cannabis-infused products directly from processors.

Other updates include the creation of an adult-use education and research license. The new license type is valid for one year and does not carry an application fee, license fee, or a renewal charge; however, license holders must be registered with the federal Drug Enforcement Administration. The MRA has also made steps to free up the movement of cannabis prior to final safety testing within the Michigan market and has made “significant changes” to how cannabis is tested. Product slated for destruction must be destroyed within 90 days.

The new rules also allow curbside or drive-through services at cannabis shops, depending on local approval. Additionally, the MRA updated the labeling rules for cannabis concentrates and edibles.

The MRA proposed these changes in September 2021 and they are just the latest updates to Michigan’s evolving cannabis industry. At the time of the proposals, Michigan NORML’s Executive Director Rick Thompson said allowing Class A micro-businesses to buy concentrates and edibles from other licensees was “huge.”

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Connecticut Sets Household Income Limits for Social Equity Applicants

3/09/2022

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Connecticut’s Social Equity Council (SEC) has set household income limits on social equity applicants (SEA) at $235,332 during any one year of the prior three years, representing 300% of the $78,444 figure that the SEC is using as the state median income amount, according to Pullman & Comley’s Matthew Glennon. The rules were announced during the council’s March 2 webinar.

The SEC indicated that the calculation of household income will include all residents of the SEA’s home address that are 21-and-older and that the income threshold will be strictly applied, so even if a household is even one dollar over the limit, the applicant is not eligible as a social equity applicant.

Connecticut regulators approved social equity rules for the industry in January, announcing that the 56 first-round licenses will be evenly split among social equity and general licenses and are available for retailers, micro-cultivators, delivery services, food and beverage businesses, manufacturers, and transporters. Applications for Disproportionately Impacted Area cultivators opened on February 3. Social equity license hopefuls in the state have a one-time 90-day application period that ends on May 4.

The Department of Consumer Protection will then schedule several lotteries for the remaining licenses and expects a second licensing round in the second half of the year. Applicants selected for the social equity licenses are subject to review by the SEC.

In November, workforce and economic development organizations the Connecticut Community Outreach Revitalization Program (ConnCORP) and The WorkPlace announced the creation of the Alliance for Cannabis Equity (ACE), which will focus on social equity and economic opportunities for Black and Brown entrepreneurs and minority workers throughout the state’s cannabis industry.

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