New York to Allow Cannabis Companies to Take State Tax Deductions

4/08/2022

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In the agreed-upon Fiscal Year 2023 budget agreement between New York lawmakers and Gov. Kathy Hochul (D), state-approved cannabis businesses will be eligible for the same tax break that is currently in place for other types of businesses.

Including the provisions would help the state’s cannabis operators as U.S. tax law prohibits the industry from any federal tax deductions under Section 280E of the tax code.

The New York tax break would apply to taxable years beginning on and after Jan. 1, 2022.

The budget bills proposed by both the Assembly and Senate, which are controlled by Democrats, include language stating that “the provisions of Section 280E of the Internal Revenue Code, relating to expenditures in connection with the illegal sale of drugs, shall not apply for the purposes of this chapter to the carrying on of any trade or business that is commercial cannabis activity by a licensee.”

Several other states have moved to allow licensed cannabis businesses to take business deductions allowed by non-cannabis companies. A bill introduced last month in California would allow operators to receive a tax credit equal to the amount of the following qualified business expenses: employment compensation, safety-related equipment and services, employee workforce development, and safety training. The bill sponsor, State Sen. Scott Weiner (D), said the measure would help combat illicit sales in the state.

Missouri lawmakers had approved a measure last July that would have allowed the state’s medical cannabis companies to make normal state deductions; however, Gov. Mike Parson (R) ultimately vetoed that bill due to provisions that would have provided tax relief to businesses impacted by city-wide or county-wide public health restrictions which created “significant unintended consequences that could greatly harm localities.”

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Poll: 55% of European Adults Support Cannabis Legalization

4/08/2022

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A survey commissioned by Curaleaf International and conducted by Hanway Associates found that 55% of adult Europeans support legalizing cannabis for adults, with 25% opposed and 20% indifferent. Among those in favor, 81% supported regulated retail, 62% supported home cultivation, and 56% backed social-use clubs.

Of all the 9,043 poll respondents, 48% favored regulated retail, 35% supported home cultivation, and 32% backed social-use establishments. In all, home cultivation had the strongest opposition among those polled (41%).

In a statement, Antonio Costanzo, Curaleaf International CEO, said the report “makes it evident the majority of Europeans want to see recreational cannabis available in a way that allows adults access to high-quality products that are regulated.”

Joe Bayern, CEO at Curaleaf, said “the next step is for legislation to catch up to consumer demand,” noting that Germany’s incoming government has committed to legalizing cannabis for adults and “once Germany goes the rest of the continent is likely to follow suit.”

“This report proves what Curaleaf has been saying for some time now,” he said in a statement, “that Europeans want access to safe, competitively priced, and high-quality cannabis that is legal.”

The poll includes adults 18-and-older throughout France, Germany, Italy, Spain, The Netherlands, Portugal, Switzerland, and the U.K. between February 24 and March 14.

In December, Malta became the first European Union nation to legalize cannabis for adults, while in October Luxembourg legalized cannabis cultivation for adults.

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South Carolina Medical Cannabis Bill Reaches House Floor

4/08/2022

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A medical cannabis bill is heading to the House floor in South Carolina after being approved 16-3 by the chamber’s Medical, Military, Public and Municipal Affairs Committee on Thursday, the Associated Press reports. It marks the first time a medical cannabis measure has made it to the full chamber in the eight years since a bill was first introduced to enact the reforms.

Under the measure, smoking is not permitted and patients would only have access to oil, salves, patches, or vape products. The bill includes a short qualifying conditions list, limited to patients with cancer, multiple sclerosis, glaucoma, sickle cell anemia, autism, and some post-traumatic stress disorder diagnoses. Doctors would also be required to meet with patients in person and patients would only be allowed a two-week supply at a time, according to News19.

The measure passed the Senate in February and Gov. Henry McMaster (R) has not indicated whether he would sign the bill if it is approved by the Legislature.

The Medical, Military, Public and Municipal Affairs Committee adopted two changes to the bill, including one to require criminal background checks for distributors and security plans for their businesses and another that would require patients to be notified of the exact strain and what ingredients are in the product.

More than 100 other amendments were proposed by Republican Rep. Vic Dabney but more than half were found out of order and Dabney pulled the rest after his concerns about the legislation were heard.

If approved, South Carolina would be the 38th state to allow some form of medical cannabis access. South Carolina lawmakers are currently on Easter Break and will return next week.

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Pelorus Equity Group: Real Estate Lending for Cannabis

4/07/2022

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Real Estate Investment Trusts (REITs) are companies that own or finance income-producing real estate. The Pelorus Fund, managed by Pelorus Equity Group, is a private mortgage REIT specializing in value-add commercial real estate lending in the cannabis space, value-add meaning that a portion of their loans are pre-approved budgeted improvements increasing the value of the property. These improvements can be for ground-up construction, tenant improvements, and entitlement work for land development for cannabis-use properties.

Ganjapreneur spoke with Pelorus President Rob Sechrist about the company’s operations in the cannabis industry. “Our specialty has been in value-add lending and we’re one of the most experienced in the country prior to entering the cannabis lending sector,” he said. “Previously in the non-cannabis bridge lending space where we came from originally, we were able to get our investors low, double-digit returns on their investment, which is exceptional for a senior secured real estate debt transaction.”

Value-add is specialty lending, which requires accurately appraising the fully stabilized value of the property for how much a project will eventually be worth once completed, thus lenders must have accurate insights into commercial real estate construction. The nuances of the developing cannabis industry make this task even more complex: the lender must underwrite based on the property value in the future with a dynamic view of many moving parts within the construction process and apply that to the cannabis industry, which has a proven higher rate of return than the traditional non-cannabis market comps.

The Pelorus Fund is primarily comprised of retail investors but the Fund recently received an investment-grade rating from Egan Jones which allowed for institutions like large banks, credit unions, and insurance companies to participate in a $50M unsecured bond offering, clearing a path for institutional investors and bringing their total asset under management to $265M. The bond reduces the Fund’s cost of capital which allows the firm to offer fully stabilized, lower-cost loans to cannabis borrowers in addition to the value-add portfolio of loans on the balance sheet.

The Firm elected for the bonds to be unsecured, which means as long as the bond holders are paid, they can’t call the bonds due. This is true regardless of any change in the value of the real estate portfolio (as was the case in 2009). Bond holders receive a 7% coupon, which is accretive to the Fund’s equity investors. These complex structures are the foundation of the unique REIT that Pelorus has built. Rob credits the company’s success to his partners’, co-founder Dan Leimel and Managing Director Travis Goad, combined 65 years of hard-earned experience in the real estate and lending sectors.

Before writing a loan, Pelorus gathers property insights like location, purchase price, tenant information, and property improvements. Then they will order a third-party feasibility review to verify every line item requested from the borrower to the standard market price. Their proprietary data analytics, collected internally from tracking some 2,000 projects, is also applied to projections. This data fluctuates but provides a foundational baseline view of market trends. They also pull third-party data for insight into labor markets. Finally, they assess the saturation of cannabis businesses in the region to understand whether another facility is needed, revealing the value of building industrial cannabis-use facilities in that area. Pelorus was the first to create such a database. They are also the first value-add lender to use a cannabis industry valuation.

“Most borrowers in this sector have never had value-add lending, they’ve never done the types of development that requires a construction type of loan,” Rob said. “So we had to explain to them that, one, we’re using the cannabis valuation and the other ones aren’t. But more importantly, we’re the only value-add lender in the sector processing an unlimited number of budgeted construction draws and we lend on the fully completed, stabilized value.”

Once there is a clear understanding of the scope of the project, Pelorus can underwrite transactions much faster than traditional lenders. That speed is one benefit of borrowing from the Fund — the other is their deep understanding of value-add lending combined with their knowledge of the cannabis industry. The origination rates might be higher than traditional lenders but Rob believes they more than makeup for that in the speed in funding approved budgeted draws, getting the project completed and keeping the cash flowing. Many lenders don’t understand the actual value of a cannabis business in specific markets, therefore they don’t grant large enough loans. Pelorus writes loans that match the value, decreasing any possibility of a halt to construction which can gouge budgets. Providing loans that cover the entirety of a project removes the need to do any more fundraising. Private equity fundraising often forces business owners to relinquish stake in their company, which Rob asserts is a much higher cost than Pelorus’ fees.

Of course, there are multiple catches to ensure that projects run smoothly and spend funds efficiently. Pelorus writes covenants into contracts that solidify milestones and serve as a way to track the project. In addition to covenants, Pelorus will review the paperwork, look for canceled checks, and match up each line item in the invoice before releasing funds to a borrower. In addition, they send an inspector to the project site to take pictures for a report listing the percentage of completion on each line item. Each step in this protocol protects the investors and their assets.

A project’s scope can sometimes change so significantly that the borrower will need to raise more capital. If the necessary funds exceed the project’s contingency budget, there is a stipulation in the contract that the borrower must add the additional capital to the budget themselves. If the borrower is unable to do so, Pelorus will look at possible alternatives but may be forced to stop advancing draws for the loan. In a worst-case scenario, they may need to legally file for foreclosure, which begins the process of selling the property at auction. But if the borrower isn’t a bad actor, the Pelorus team tries to help solve issues creating a crux in the project before cutting off the loan and filing for foreclosure.

In one case, they had funded the construction of a licensed cannabis facility on unincorporated county land, but the company ran into issues when anti-cannabis civil servants used their power to block the permitting process. The issues halted groundbreaking and greatly increased the cost of the project. In this case, the team suggested ways to subdivide the land and change building plans to make the best of the permitting debacle and possibly even increase projected profits once the facility is in operation. The team utilizes quick-thinking alongside valuable multi-sector experience to serve the borrower and the investor.

Pelorus Equity Group is one of the first value-add lenders in commercial cannabis real estate and they continue to restructure and evolve alongside the developing cannabis industry. Rob teased that in 2022, they plan to continue building unique tax structures that are advantageous for their portfolio.

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D.C. Council Narrowly Rejects Bill To Shut Down Cannabis Gifting Economy

4/07/2022

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This article was written by Gaspard Le Dem (@GLD_Live on Twitter) and originally published by Outlaw Report.

The D.C. Council on Tuesday voted down an emergency measure to ramp up enforcement against the District’s many unregulated cannabis businesses – storefronts and delivery services that “gift” weed with the purchase of other goods, like t-shirts and potted plants.

The bill, introduced late last week by Council Chairman Phil Mendelson, would have granted D.C.’s Alcoholic Beverage Control (ABC) Board more power to impose hefty fines and shut down weed businesses that operate without a permit.

It would also have made it easier to purchase cannabis at licensed medical dispensaries by allowing adults 21 and older to “self-certify” that they use weed for medical purposes, rather than requiring a doctor’s note.

But with only eight votes in favor, the measure fell just one vote short of the two-thirds approval it needed to pass as emergency legislation. Councilmembers Janeese Lewis George, Christina Henderson, Elissa Silverman, Robert White, and Trayon White voted against the bill.

In his opening remarks on the bill on Tuesday, Mendelson said increasing enforcement against unlicensed weed shops is necessary to protect D.C.’s legal cannabis operators, who have seen sales plummet due to competition from the gifting market.

He portrayed gifting shops and delivery services as highly profitable businesses run by “illegal operators” living outside the District. “Their business is around $500 million a year,” Mendelson said. “That’s a lot of money. And that’s not D.C. money, that’s out-of-state money.”

Mendelson on Monday said that a quarter of D.C. gifting businesses don’t even have a basic business license and that two-thirds are owned by people who aren’t District residents. He didn’t offer any sources to back those numbers up.

Ward 5 Councilmember Kenyan McDuffie had softer words for unlicensed weed businesses. “Today we have a number of gifting shops, some of which are Black-owned and employ Black and brown D.C. residents,” he said. “It’s important to acknowledge that.”

McDuffie proposed an amendment to Mendelson’s bill on Tuesday that would have extended the grace period for gifting shops while increasing the number of medical dispensary permits in the District from eight to 32 to accommodate more patients.

Ward 6 Councilmember Charles Allen said that while it’s unfortunate that Congress continues to block D.C. from regulating adult-use cannabis, “gifting” businesses remain illegal for now. “There is no such thing as a commercial transaction that is I-71 compliant,” Allen said.

(I-71 was the 2014 ballot initiative that legalized the possession, home cultivation, and gifting of weed in the District.)

Several council members raised concerns that Mendelson’s bill was being rushed through the legislative process and could end up disproportionately harming D.C.’s Black community. (A significant number of business owners and employees in the gifting world are Black, though the actual percentage is still up for debate.)

“When we consider the disparate and catastrophic impact of the War On Drugs on our communities, it’s clear there will be a significant racial equity impact if this legislation moves forward,” said Ward 4 Councilmember Janeese Lewis-George.

Lewis-George questioned the need to pass an emergency bill when the council is already working on permanent legislation to launch a recreational cannabis market that would address some of the same issues around the gifting economy. She said an emergency bill wouldn’t receive a racial equity assessment from the D.C. Council’s recently created Office Of Racial Equity.

“The whole purpose for creating the Office of Racial Equity at the council is for issues just like this.”

At-Large Councilmember Elissa Silverman also raised concerns about the timing and effectiveness of Mendelson’s bill.

“I just can’t get behind making what are drastic policy changes on an emergency basis,” Silverman said. “This dramatically alters how cannabis will be bought and sold in the District of Columbia.”

Silverman recognized that the proliferation of unregulated weed businesses across the District has become a “real messy problem,” and poses many public health and safety risks for residents. However, she said Mendelson’s emergency bill would only shore up medical cannabis operators without solving those underlying issues.

At-Large Councilmember Robert White said Mendelson’s bill could lead to Black entrepreneurs with limited access to capital getting locked out of D.C.’s legal cannabis industry. “Many of them do want to find a way to come to the legal side of this,” he said, adding that “we don’t want to shut folks down.”

Ward 8 Councilmember Trayon White said he was concerned about Mendelson’s proposed fines for unregulated weed businesses, which would reach up to $30,000. “It just gives me unrest in my spirit to know that’s where we’re at with this bill,” he said.

“The historical, racial disparities around cultivation, sale, and use of marijuana are only further aggravated by these provisions,” he added.

On Monday, the D.C. Chapter of the NAACP had issued a statement condemning Mendelson’s bill and urging members of the council to vote against it.

“To punish these primarily Black-owned businesses is a heinous act,” said Abiola Agoro, NAACP DC’s Political Action Chair. “You cannot help Black DC residents achieve equity while pulling the rug from under those in a system that continues to be stacked against them.”

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Study: Cattle Fed CBDA-Rich Hemp Have Reduced Stress

4/07/2022

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A study by researchers at the Kansas State University College of Veterinary Medicine suggests that feeding cattle hemp with high cannabidiolic acid (CBDA) content led to reduced stress and increased the times the cattle lie down, according to a Beef Central report.

The study found cannabinoids in industrial hemp decreased the stress hormone cortisol and the inflammatory biomarker prostaglandin E2 in cattle that consumed the hemp feed.

Michael Kleinhenz, assistant professor of beef production medicine at the College of Veterinary Medicine, said the researchers found that “repeated daily doses of CBDA via feeding hemp does not result in accumulation of cannabinoids in the blood [and] it solidified previous research and shows that each cannabinoid has its own absorption and elimination profile.”

“The initial data we have collected is essential should industrial hemp and its by-products are to be considered by the U.S. Food and Drug Administration and the Association of American Feed Control Officials. Further work is needed to determine if cannabinoids can alter the stress response in cattle during stressful times such as transportation and weaning, but we hope this research is a step forward in the right direction.” – Kleinhenz to Beef Central

The study found that the cows that consumed the industrial hemp feed spent 14.1 hours per day lying down compared to the 13.4 hours per day spent lying down by the control cattle. Cattle in the hemp group also demonstrated an 8.8% decrease in prostaglandin E2 concentrations from baseline compared to a 10.2% increase from baseline observed in the control group.

“If hemp is to be utilized as an ingredient in the ration of cattle, it is prudent to know and understand the pharmacokinetics and potential biological effects of cattle exposed to repeated doses of cannabinoids present in industrial hemp,” Kleinhenz said.

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Cannabis ‘Amnesty Boxes’ at Chicago Airports Rarely Used

4/07/2022

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The so-called “cannabis amnesty boxes” set up at Chicago, Illinois’ two major airports are hardly used, the Chicago Sun-Times reports. It is the responsibility of the Chicago Police Department to empty the boxes and from January 2020 through March 20, 2022, only 34 collections have been made, including 22 at O’Hare and 12 at Midway.

Only half of the logs show that either cannabis or products suspected to be cannabis were retrieved from the boxes, which were installed following legalization in the state, while the other half of the logged items don’t specifically mention cannabis – one lists only “plastic bags” which could indicate the boxes may be being used as trash cans, the report says. Police destroyed 14 items found in the boxes but in most cases, the items are simply logged as “received,” according to the data provided by police in an open record request by the Sun-Times.

In January 2020, shortly after the boxes were installed at the two major travel hubs, someone stole cannabis from one of the boxes at Midway, which was unlocked. Security cameras from the incident showed a man opening the box – which is positioned near security checkpoints – and grabbing its contents. The individual was never caught, according to the Sun-Times, and it remains the only incident of theft at the boxes.

A month later, the original boxes were replaced with ones that are more mailbox-like, making it harder to access by those without a key. The 12 new boxes cost the Chicago Department of Aviation about $29,000, a department spokesperson told the Sun-Times.

While cannabis for adults is legal in 18 states, Washington D.C., and the territory of Guam, it remains prohibited under federal law and, therefore, is banned from airplanes.

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Detroit Approves Adult-Use Cannabis Licensing Measure

4/06/2022

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The Detroit, Michigan City Council has approved a new and more inclusive adult-use cannabis ordinance more than two years after the city opted to allow industry operations, the Detroit News reports. The 8-1 approval comes after a federal judge ruled last year that the city’s plan to give adult-use cannabis licensing preference to Motor City residents was “likely unconstitutional.”

The measure was introduced by Mayor Pro Tem James Tate in February and uses the same language as the Michigan Marijuana Regulatory Agency’s social equity program, which opens benefits to all residents from 184 communities in the state that were disproportionately affected by the war on drugs, rather than just Detroiters, the report says.

“I am thankful that Detroit will finally join the 23 municipalities in Michigan that have allowed adult-use cannabis licensing within its borders. But the goal has never been to simply have licensing within the city, but to create policy that works to address the inequities that so many Detroiters have experienced trying to pursue an opportunity in this industry.” – Tate via the News

Under the plan, there are still opportunities for Detroit residents. If a Detroiter owns a 51% stake in a business, they can be certified as a “Detroit Legacy” applicant and be able to benefit from city assistance with business plans, reduced fees, discounted zoned city properties, and networking.

Twenty retailer licenses will be available in the first licensing round, along with five microbusiness licenses and five social consumption licenses. These licenses will be available for both social equity and non-equity applicants, the report says. The second round will include 15 retail, five microbusiness, and five consumption licenses available for each track of applicants.

The ordinance takes effect on April 20; however, the official licensing date will be determined by the city’s Civil Rights, Inclusion, & Opportunity Department (CRIO) – which must then be approved by the council. CRIO officials have indicated they will need 90 days to hire a third-party scoring firm for the license applications and to identify a program to host the lottery for any remaining licenses if there are ties in the scoring process.

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Maryland Legislature Sends Adult Use Question to Voters in November

4/06/2022

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Maryland voters will consider a Constitutional Amendment to legalize adult-use cannabis on their November ballots after the House passed a Senate-approved amendment to put the question to voters on Friday, the Associated Press reports.

Additionally, House lawmakers passed companion legislation to begin the process of implementing an adult-use system, leaving specific taxation and licensing regulations for next year. The Constitutional Amendment does not need the approval of Gov. Larry Hogan (R) but the implementation bill passed by the Democratic-controlled General Assembly would need the governor’s signature. However, if Hogan vetoes the bill, Democrats do have the necessary votes in the House and Senate to override the veto.

The Constitutional Amendment would legalize adult-use cannabis starting July 1, 2023, with a transitional period from January 1-July 1 where possession of fewer than 1.5 ounces would garner a fine. The companion bill legalizes possession of up to 1.5 ounces on July 1 and creates a civil citation for up to 2.5 ounces. Laws governing over 2.5 ounces would remain the same, the brief explains.

According to the report, the legislation contains expungement provisions, including automatic expungement for people convicted of cannabis possession alone. Lastly, Marylanders convicted of more serious cannabis crimes would have the opportunity to be re-sentenced, the AP reports.

Although Maryland has a medical cannabis sector — the state announced last year it had sold over $1 billion worth of medical cannabis — efforts to legalize adult-use cannabis through the legislative process have failed in recent years, leading to the current scenario where Maryland voters will decide the fate of the reforms.

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New York Bill Would Mandate Community Investment Plans by Multi-State Cannabis Operators

4/06/2022

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A bill set to be introduced this week in New York would require multi-state cannabis operators in the state to create a plan to reinvest in communities disproportionately impacted by cannabis prohibition. The measure, the Cannabis Community Reinvestment Act, is backed by the National Cannabis Party.

The legislation is sponsored by Democratic state Sen. James Sanders Jr. who said the proposal “will ensure that companies that profit the most from the legalization of cannabis will contribute part of their profits back into the communities most harmed by the War on Drugs.”

“The War on Drugs unleashed severe damage and ruined many lives–particularly in communities of color.” – Sanders Jr. in a statement

Sephida Artis-Mills, president & co-founder of the National Cannabis Party, said in a statement that “the power belongs to the people, and so does the plant.”

“To control the way people choose their medicine, and overall wellness, is a civil rights issue we need to address,” she said.

The bill is set to be unveiled on Thursday.

New York lawmakers legalized cannabis for adults last year and in March, Gov. Kathy Hochul (D) announced the Seeding Opportunity Initiative which will give the state’s first adult-use retail licenses to individuals with prior cannabis-related offenses. While the state has not yet issued any adult-use licenses, 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. 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 end-of-the-year start date was an unexpected announcement as Cannabis Control Board Chair Tremaine Wright has previously indicated that adult-use cannabis licenses would not be issued 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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Maine’s Beal University Launches Cannabis Degree Programs

4/06/2022

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Maine’s Beal University has formally launched its cannabis-focused online associates and bachelor’s degree programs, which are expected to enroll their first class of students this May. The programs include an associate degree in Cannabis Business Administration and Cannabis Laboratory Science, and a bachelor’s degree in Medicinal Plant Sciences.

Sheryl DeWalt, Beal University President, said that the college’s “mission focuses on providing educational programs aligned to the employer needs,” and the programs are aimed at meeting the demands of the growing industry.

“The cannabis industry has been rapidly expanding these past few years, this created tremendous employment opportunities and demand for workers trained in the cannabis field.” – DeWalt in a statement

The university collaborated with local cannabis cultivators, manufacturers, retail stores, and testing laboratories to fully understand their needs, and the degree programs were created to provide students the opportunity to learn the skills to become employed in various cannabis fields.

DeWalt said the programs are being offered entirely online because the mode “enables the programs to be available for students to enroll from anywhere.”

“Our courses utilize engaging content through digital simulation and interactive experiences,” she said. “This gives our students the ability to learn and retain the subject matter more easily.”

The program received support from certified Nurse Practioner AnnMarie Fredericks, and Registered Nurse Merideth Albert, of Vetted Cannabis, a Sanford, Maine-based medical cannabis dispensary, who said they “endorse and promote Beal’s programs to provide educational enrichment for the emerging medical cannabis industry.”

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AROYA Reports Record Adoption for Cannabis Production Platform

4/06/2022

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Growth reflects 50 percent increase in multi-state operators, demand for data-driven insights, compliance, and maximum yield per sq. ft.

Pullman, WA (April 5, 2022) – AROYA, a METER Group company, reported record growth in FY2021, exceeding $10M in revenue from sales of its end-to-end cannabis production platform.

Demand for cultivation and production platforms like AROYA that utilize sensors, software, and data analytics is spiking within the cannabis industry. Analysts from AheadInsight project that the cannabis technology industry will continue to grow exponentially at a CAGR of 33.17 percent and attain a market value of $107.67 billion by 2025.

The three-year-old brand has grown steadily, extending its footprint across the U.S. To-date, AROYA works with over 400 clients—including some of the industry’s largest multi-state operators–over 200 of which signed in fiscal year 2021.

“AROYA has been life changing,” says Anna Willey, CEO of CAM, a fully integrated operator headquartered in Sacramento, California. “You’re going to know when to do the cleanups. You’re going to know when we’re changing from a vegetative feed to a generative feed or back to a vegetative feed. It’s been so amazing for our team to take all of the guessing out of growing cannabis.”

The company’s mission is to empower cannabis growers and cultivators with the competitive advantage that comes from end-to-end visibility and real-time access to data that drives actionable insights; putting it together on a single dashboard gives you all the information you need to make informed decisions.

AROYA is the preferred cannabis production platform of top cannabis operators across the country, combining innovative hardware and software to deliver actionable insights that help improve their yield in grams, per square foot, per year – predictably, profitably, and at scale. AROYA’s solutions foster data-driven decision making, improving yields and operational efficiency while elevating (and standardizing) product quality.

ABOUT AROYA
AROYA is a cannabis production platform that combines industry-leading hardware and software to help cultivators increase yield, scale operations, and achieve consistent quality. Based in Pullman, Washington, and a division of METER Group, Inc., AROYA optimizes and demystifies the entire cannabis production process from seed to package.

For additional information, please visit AROYA.io

 

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Boundless Technology Releases CFX+ Vaporizer With Improved Cooling, Extended Vapor Path

4/06/2022

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Boundless Technology has released the next line in its groundbreaking vaporizer technology, the CFX+ vaporizer. This portable unit builds on the success of its predecessor, the CFX. It features a Zirconia cooling air path located within the mouthpiece that isolates and cools the vapor before it hits the user’s lips and mouth. And the extended vapor path allows for larger hits, higher temperature, and full extraction vaporization process. The CFX+ launches on April 20th at boundlesstechnology.com.

“This unit represents the evolution of vaporizers and our focus on the innovative technology within our products,” said Mathias Nastos, VP of Operations at Boundless. “We aim to position ourselves as a tech-forward company and feel the CFX+ indicates the direction we’re heading.”

The CFX+ offers an upgraded user interface with more control over the vaporization experience. Settings include preferred session time, precise temperature ranging from 100°F – 420°F (38°C – 22°C), brightness levels, and more. With an upgrade to USB-C charging, the CFX+ fully charges in 45 minutes and lasts for six to eight sessions per charge depending on the selected settings. And the built-in poker tool allows for a bowl stir whenever it is needed.

CFX+ Vaporizer Features:

  • Zirconia Cooling Magnetic Mouthpiece
  • Upgraded User Interface
  • Fully Adjustable Temperature Control
    • 100°F – 420°F (38°C – 22°C)
  • Preset Temp Options for Quick Setting
  • Built-in Poker Tool
  • Portability for Convenient Use
  • Conduction Heating Technology
  • USB-C Charging
  • Compatible with most Dry Herbs

The precise temperature control provides fully personalized sessions that are easily customized to fit the user’s preferences. And for those who want a straightforward experience, the CFX+ offers four preset temps for quick setting. It also includes everything needed to start vaping right after the initial charge. Quite simply, the CFX+ is the next evolution in vaporization, it is Vaping Evolved.

About Boundless Technology

Boundless Technology is a leader in the vaporizing industry, continually seeking ways to expand beyond what’s currently available on the market, and striving to create innovative technology that keeps portability, subtlety, and effectiveness at the forefront. Offering an affordable, efficient, and elevated experience is the focal point when it comes to Boundless.

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House Passes Bill to Expand Cannabis Research Possibilities

4/05/2022

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The U.S. House of Representatives on Monday passed a measure to expand cannabis research possibilities in a bipartisan 343-75 vote, Marijuana Moment reports.

Sponsored by Reps. Earl Blumenauer (D-OR), a legalization supporter, and Andy Harris (R-MD), a prohibitionist, the Medical Marijuana Research Act seeks to streamline the cannabis research process by removing some barriers for researchers who apply to study cannabis and by letting researchers use cannabis products acquired through state-legal marketplaces for their studies.

“The cannabis laws in this country are broken, including those that deal with the medical research of marijuana. America’s growing cannabis industry operates without the benefit of a robust research program. Instead, we are outsourcing research to Israel, the United Kingdom, and Canada to our detriment.” — Blumenauer, in a press release

Momentum toward federal cannabis reforms appears to be growing as the approval comes just days after the House voted along mostly party lines to pass the MORE Act, which seeks to federally legalize cannabis. The Senate, meanwhile, unanimously passed its own bill last month to expand scientific and medical research on cannabis — advocates hope that the two chambers will be able to consolidate the bills.

The House also passed the SAFE Banking Act, which seeks to normalize banking relationships for state-legal cannabis companies, in March — it was the chamber’s sixth time passing the legislation but the Senate has yet to ever consider the proposal.

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Still Unclear Whether Biden Would Sign House-Approved Legalization Bill

4/05/2022

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President Joe Biden’s Press Secretary Jen Psaki was unable to say whether the president supports the Marijuana Opportunity Reinvestment and Expungement (MORE) Act after the House passed the bill last week on mostly party lines. Rather, she said during remarks to reporters on Friday — first reported by Marijuana Moment — that Biden “agrees that we need to rethink our approach” to cannabis.

The secretary went on to mention that candidate Biden’s thoughts during the campaign were that the U.S. should “address the racial disparities and systemic inequities in our criminal justice system, broaden research on the effects of marijuana and support the safe use of marijuana for medical purposes.”

During last week’s remarks, Psaki said, “We look forward to working with Congress to achieve our shared goals — and we’ll continue having discussions with them about this objective,” but she did not elaborate on what those objectives might look like, the Moment noted.

These vagaries add to the haze clouding questions about cannabis policy during Biden’s first presidential term. The president himself has said little about cannabis legalization but in the past, he was not in favor of significant reforms. Secretary Psaki said last year that Biden’s opposition to broader cannabis reforms “has not changed,” despite saying on the campaign trail that states should decide their own cannabis policy, according to the report.

Vice President Kamala Harris said last year the administration was not focused on Biden’s cannabis campaign trail promises because they were overwhelmed by other issues, like the pandemic. Earlier this year, however, the Biden Administration disappointed cannabis advocates when it opted to include an unnecessary rider that blocks cannabis sales in Washington DC, despite voters there having voted overwhelmingly in favor of cannabis legalization and for establishing a regulated marketplace.

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New Hampshire House Votes to Legalize Cannabis & Put Liquor Commission in Charge

4/05/2022

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The New Hampshire House of Representatives voted 169-156 last week to legalize cannabis for adult use in the state; however, the bill would create a state-run monopoly system, the Associated Press reports. Under the plan, the state Liquor Commission would regulate the cultivation and sale of cannabis in at least 10 stores.

The vote comes less than three months after the Republican-controlled chamber approved a separate measure that would legalize personal possession and cultivation of cannabis for adults 21-and-older. That bill, which still requires Senate approval, would allow adults to possess up to 3/4 of an ounce of cannabis – which is already decriminalized in New Hampshire – and allow personal cultivation of up to six plants. The proposal passed the lower chamber with a five-vote, veto-proof majority.

During an interview last month with WCVB 5 “On the Record,” Republican Gov. Chris Sununu said that while he doesn’t support broad cannabis legalization, he called the bill approved last week by lawmakers “the way to do” legalization. He indicated that he opposed the reforms because the state had just gotten the opioid crisis under control.

Both of New Hampshire’s border states, Massachusetts and Vermont, have already legalized cannabis for adult use. Sales to adults began in Massachusetts in 2018 while Vermont’s initial bill in 2018 legalized possession and use but not sales – a separate bill to allow sales was passed by Vermont lawmakers in 2020 but sales have yet to commence in the Green Mountain State.

Previous efforts to legalize cannabis in New Hampshire have failed as the House has passed the reforms three times in four years but they have never been approved by the Senate.

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Colorado Running Cannabis-Themed License Plate Auction for Second Year

4/05/2022

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For the second year in a row, Colorado is auctioning off cannabis-themed license plates, the proceeds of which will benefit the state Disability Funding Committee. There are 22 different official state license plates in this year’s auction, including “420,” “HASH,” “EDIBLE,” “THC,” and “CBD.”

The state raised more than $45,000 from last year’s auction, Lt. Governor Dianne Primavera said in a statement.

“This is a fantastic opportunity to provide grant funding to not-for-profit and for-profit organizations that serve people with disabilities. I’m thrilled to continue to support the efforts of the Colorado Disability Funding Committee.” – Primavera in a press release

As of Tuesday morning, “WEED” had the highest bid total at $2,620, followed by “MRY JANE” at $2,320, “420” at $2,100, “CBD” at $1,420, and “HASH” with a $1,220 bid total. Other plates that had received bids were “CANABIS” ($770), “BLUNT” ($720), “710” ($670), “NORML” ($670), “THC” ($670), “BONGWTR” ($620), “GOTHEMP” ($520), and “CO2,” “DABBING,” “EDIBLE,” “GOT OIL,” “RESIN,” “TERPENE,” “TOKER,” “TRIM,” and “VISINE,” which each had reached the opening bid of $420.

The winning bidder does have the right to resell their configuration through the committee in the future.

Last year the plate “ISIT420” received the highest bid at $6,630, while the “TEGRIDY” plate – named after the fictional cannabis farm featured in the television show South Park – saw a high bid of $4,930. “BONG” rounded out the top three from the inaugural auction with a $3,890 high bid.

This year’s auction will run until 4:20 p.m. Mountain Time on April 20.

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Colorado Lawmakers Kill Bill to Protect Workers from Termination for Cannabis Use

4/05/2022

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A Colorado bill that would have provided protections for employees for using cannabis off the clock was quashed last month by the House Committee on Business Affairs & Labor, The Collegian reports. The measure would have prohibited employers from firing employees for their recreational cannabis use after work hours and their medical cannabis use during work hours.

The measure was replaced by a resolution to form a task force to study the issue of employment and medical cannabis use. The initial proposal was killed by the committee over concerns about safety, enforcement, and employers’ rights.

State Rep. Edie Hooton (D), the bill’s sponsor, said that “many Coloradans still maintain that ‘reefer madness’ attitude, and it does everyone a disservice.”

“I am very familiar with this community; I’ve worked with them for years. I have sympathy for them. I realize they have no voice at all at the capitol except for a handful of volunteer lobbyists, and they only have so much influence.” – Hooton to The Collegian

The measure conflicted with the rights of Colorado employers to enforce a drug-free workplace – a principle upheld in the 2015 Coats v. Dish Network case in which the state Supreme Court ruled that in the state statute prohibiting individuals from being terminated for lawful activities outside of work, the term “lawful” refers to activities under both state and federal law.

State Rep. Shannon Bird (D) told The Collegian that the case determined that medical cannabis patients “are not a protected class.”

“…So in a traditional employment relationship, the employer does get to set the terms and conditions of employment,” she said in the report.

Jess Kostelnik, government affairs manager for the Denver Metro Chamber of Commerce, told The Collegian that the measure “jeopardizes a business’s ability to comply with federal law and maintain drug-free workplaces” which she said “could have far-reaching consequences for employers who do business with the federal government” and could put “into jeopardy hundreds of thousands of dollars in federal contracts flowing into the state of Colorado.”

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Veronica Castillo, The Traveling Cannabis Writer, Lands Colorado-based Bud & Breakfast As New Travel Sponsor

4/04/2022

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DENVER, CO, UNITED STATES, March 31, 2022/EINPresswire.com/ — Veronica Castillo, The Traveling Cannabis Writer, has landed a new travel sponsor: Colorado-based Bud and Breakfast, a 420-friendly booking platform.

Veronica started as a freelancer/client but through collaboration on a project found that both brands can accomplish more working with each other under sponsorship.

“The entire Bud and Breakfast team is extremely excited to welcome our newest member Veronica Castillo to our family. She is clearly one of the foremost writers within the field and brings a multitude of wisdom, experience, and expertise on multiple facets within the industry,” the Bud & Breakfast team said in a statement.

“Veronica has her finger on the pulse and her love of travel and cannabis makes for a match made in heaven for collaboration with our company. The timing of our introduction was in total synchronicity as we had just begun a search for a writer and connected with Veronica as if by a total higher guidance. The universe does indeed listen when you put your earnest intention out there!”

Bud and Breakfast will help support the Traveling Cannabis Writer’s mission to educate, inform, and destigmatize while informing travelers of all kinds that love cannabis about the many 420-friendly lodging options within the Bud and Breakfast network.

“Working with Bud & Breakfast was on my list of career goals. They are the company that said ‘F this!’ and truly built something that accommodates cannabis consumers. Cannabis is medicine and so consumers shouldn’t have to go out in extreme cold or heat to consume their medicine. My brand is all about villages- tribes- communities.” – Veronica Castillo

“This week, Bud and Breakfast joined my village- tribe- community to contribute to my mission to educate, inform, and destigmatize, helping me prove that cannabis — it’s way more than just a high. And through them, I get to do the other thing I love which is educating people on all things travel.”

Contact

Veronica Castillo
Bud & Breakfast
castilloveronica01@outlook.com

Visit us on social media:
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Opening Weekend Cannabis Sales in New Mexico Reach $4.5M

4/04/2022

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Cannabis sales during New Mexico’s opening weekend surpassed $4.5 million, with more than half – $2.7 million – sold on Friday alone, KOAT Action News reports. Sales commenced at 12:01 a.m. on Friday and by Sunday at 12:30 p.m. sales had reached the $4.5 million mark.

Nearly 70% of the sales figures were from recreational sales, according to Cannabis Control Division figures outlined by KOAT.

Steve Pear, president of the New Mexico Division of Schwazze, said his shop had about 10 people in line at 7:00 a.m. and when he returned at around 11:30 p.m. there were about 500 people in line. He said that the first day of adult-use sales “over-delivered.”

“All at least doubled their business and we even had one of our stores to ten times what they normally do in a day on Friday.” – Pear to KOAT

Pear added that he expects a “surge” through the 4/20 holiday – which celebrates cannabis and has shown to drive sales in states where cannabis is legal.

Currently, there are just 35 legacy operators in the state, but state cannabis regulators have issued more than 230 new industry business licenses so far, NPR reports.

Under the state’s legalization law, consumers can buy to up 2 ounces of cannabis, and local governments cannot outright ban cannabis businesses; although they can limit where they can be located and their hours of operation. Public use is prohibited and can lead to a $50 fine for first-time infractions.

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Mike Tyson Partnering with Pro Wrestling Legend Ric Flair on Cannabis Line

4/04/2022

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Mike Tyson is partnering with professional wrestling legend Ric Flair on a line of themed products for the former boxer’s cannabis company, Tyson 2.0, according to a Forbes report. Flair and Tyson first met in the 1980s and Flair said they’ve been “friends for years.”

Flair, 73, described the project as “the coming together of two legends and our common passion for cannabis and its benefits.”

“In my business, you experience hurts and pains. Sometimes it’s hard to go to sleep at night. Even at my age, I’m wound tight. I have an extreme amount of energy, and they calm me down and keep me happy. And I think the whole world needs to be happy right now.” – Flair to Forbes

The product line will include Flair-themed flower, concentrates, and edibles.

Chad Bronstein, co-founder and chairman of Tyson 2.0, said the deal came together after he spent time with Flair and noticed that the former 17-time world champion treated his fans like Tyson treats his fans and that he “just saw an opportunity.”

Bronstein last year raised $100 million for his companies which include Tyson 2.0, Fyllo, and Wesana.

Flair is not the first person linked to professional wrestling to enter the cannabis industry – in October Jim Ross, who is currently an announcer for All Elite Wrestling, said he had bought land in Oklahoma for a cannabis farm. Ross, who has served as a commentator for professional wrestling promotions since 1974, said the project is tentatively called Black Hat Farms and that it was a partnership with his youngest daughter and son-in-law.

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Arizona Ruling Prevents Neglect Charges for Mothers Who Are Registered Cannabis Patients

4/04/2022

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The Arizona Court of Appeals has ruled that a mother who gives birth to a baby with cannabis in its system cannot be charged with child neglect if she has a physician’s recommendation to use cannabis legally, Tuscon.com reports. The decision overturns a move by the Department of Child Safety (DCS) to put the mother on the agency’s “Central Registry” of parents who are found to have committed acts of child abuse and neglect.

In the ruling, Judge Randall Howe, writing for the unanimous three-judge panel, said officials committed an error by not considering the evidence that the mother was lawfully enrolled in Arizona’s medical cannabis program and that the 2010 Arizona Medical Marijuana Act (AMMA) provides immunity for those with a state-issued medical cannabis card from being subject to arrest, prosecution, penalty, or denial of any right or privilege.

DCS had argued that the mother never told the recommending physician that she was pregnant – which the mother refutes but Howe said was irrelevant, the report says. The panel determined that under the state’s child-welfare laws, pregnant women cannot be charged with abuse and neglect if they are lawfully taking medications “under the direction of a physician” and that since the mother was legally accessing cannabis under a physician’s order, DCS cannot take action against her.

In the decision, Howe did note that the U.S. government “does not recognize the medical value of marijuana” and “the Center for Disease Control and Prevention warns of the effects of marijuana use during pregnancy.’’

The doctor said that she warned the mother that using cannabis could result in her being reported to DCS once she gave birth if cannabis was found in the baby’s system but that the mother is “likely to receive therapeutic or palliative benefit from … the use of marijuana to treat or alleviate the qualifying patient’s debilitating medical condition,” the report says.

The baby also tested positive for an anxiety drug, caffeine, and the antihistamine drug Benadryl which led to a report to DCS that the child had been born “substance-exposed.”

“Under AMMA, then, she is presumed to have taken marijuana for ‘medical use,’ which means taking it to treat or alleviate her medical condition or symptoms,’’ Howe wrote. “And her marijuana use is the equivalent of taking any other medication under the direction of a physician.’’

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House Passes MORE Act to Federally Legalize Cannabis

4/01/2022

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The U.S. House approved the MORE Act today – a federal cannabis legalization bill introduced by New York Rep. Jerrold Nadler (D) – in a bipartisan 220-204 vote.

The measure seeks to remove cannabis from the federal Controlled Substances Act, impose a federal tax on cannabis product sales, and would establish an expungement process for prior cannabis convictions. The House previously passed the measure in December 2020 but it was not brought to the Senate floor for a vote, which was controlled by Republicans at the time.

It’s unclear whether the measure has enough support to clear a filibuster in the Senate – which requires 60 votes – and Democratic Senators Joe Manchin (W. Va) and Jeanne Shaheen (NH) have both expressed skepticism about legalizing cannabis federally, according to The Hill.

The House considered three amendments to the proposal prior to the vote, including a provision requiring a study on the impact of cannabis on workplaces and schools, sponsored by Rep. Conor Lamb (D-PA); an amendment requiring a study of the methods law enforcement could use to determine whether a driver is impaired by cannabis, sponsored by Rep. Josh Gottheimer (D-NJ); and a provision by Rep Jamie Raskin (D-MD) to retroactively not deny individuals security clearance because of admitted cannabis use. Lawmakers approved the first and second amendments but rejected the third — a motion to recommit the legalization proposal to committee for further changes was also rejected.

In the House, Republican Rep. Nancy Mace (SC) has introduced other legislation to legalize cannabis at the federal level – that bill carries three GOP co-sponsors: Reps. Brian Mast (FL), Tom McClintock (CA) and Peter Meijer (MI).

Mace’s legislation would set an age limit of 21 for cannabis use and impose a 3% tax on cannabis, which is smaller than the 5% tax included in the MORE Act, although the Democrat-purposed bull would gradually increase the tax to 8% over five years. Mace’s bill would also establish a 10-year moratorium on any tax increases on cannabis.

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Oregon Rules Raising THC Limits in Cannabis Edibles Take Effect

4/01/2022

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New rules in Oregon take effect today that increase the levels of THC allowed in cannabis-infused edibles. The new rules double the amount of THC allowed per serving in edible products from 5 milligrams to 10 milligrams and increase the allowable limits per package from 50 milligrams of THC to 100 milligrams.

The Oregon Liquor and Cannabis Commission (OLCC) said in a press release that it has already approved the labels for 30 products containing 100 milligrams, including chocolate bars, cookies, cereal bars, and gummies.

The agency warned that consumers “should take notice of the increased amount of THC per serving in these products so they can choose a product that gives them the desired effect without unwanted side effects.”

The OLCC noted that in 2019 34% of the 386 calls to Oregon Poison Control about cannabis exposure were related to edibles and of the 223 calls that year related to individuals under 21-years-old, nearly 60% were related to cannabis edibles. About half of the 386 calls required medical attention because of negative health effects.

“Cannabis consumers in Oregon shopping for THC-infused edibles will soon find some products available for purchase that are more potent than previously allowed,” the OLCC said in a statement. “Consumers should take notice of the increased amount of THC per serving in these products so they can choose a product that gives them the desired effect without unwanted side effects.”

The new limits align the state rules with the potency allowances of most other states that allow the use of cannabis by adults.

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