Virginia Couple Selling Cannabis “Stashboxes” to Keep Drivers Safe From Open Container Laws

8/26/2021

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

Consuming cannabis may now be legal in Virginia, but getting caught with pot behind the wheel can still get you in trouble.

Under the commonwealth’s new laws, which went into effect on July 1, having an open container of cannabis in your car is considered a Class 4 misdemeanor. That’s Virginia’s lowest-level criminal offense, meaning you won’t get jail time, but you could receive a penalty of up to $250.

And here’s where things get tricky: An open container gives a judge “permissive inference”—the right to assume that you’ve consumed cannabis. That could lead to far more serious charges, such as driving under the influence.

But one Virginia couple from Suffolk wants to protect drivers from open container violations.

Sarah Morton and her husband, Ron, recently launched LOCKGREEN, a Black-owned company that sells cannabis “stashboxes” designed to prevent drivers from getting open container charges. Roughly the size of a lunchbox, the containers are equipped with a 3-digit locking mechanism, and are carbon-lined to prevent any cannabis odors from seeping out, according to the company’s website.

“Our mission is to educate people about the law and provide these stashboxes as a way to help them stay compliant with the law, and stay out of trouble,” Morton told The Outlaw Report.

A former consultant turned entrepreneur, Morton says she’s long been a cannabis advocate. Since 2017, she’s sat on the board for the Virginia chapter of the National Organization for the Reform of Marijuana Laws (NORML). In the lead-up to July 1, Morton participated in many forums on legalization and organized educational events in her Hampton Roads community on Virginia’s new laws. She said she hopes the stashboxes can help pot users avoid unnecessary interactions with law enforcement.

“We know that the Black community has been so disproportionately affected by the War On Drugs,” she said. “If there’s any way we can stop these violations, we’re going to do it,” she continued.

Before moving to Virginia, Morton’s husband worked in the cannabis industry in Maryland and Colorado. He’s now pursuing a degree in Medical Cannabis Science and Therapeutics at the University of Maryland’s School of Pharmacy, the nation’s first graduate program dedicated to studying medical pot.

Virginia code defines an open container as “any vessel containing marijuana or marijuana products, except the originally sealed manufacturer’s container.”

Whether or not a lockbox fits that definition is unclear. In general, experts agree it’s safer not to travel with cannabis in your car. But if you need to, NORML recommends keeping cannabis in a locked box or in your car’s trunk.

At around $50 a piece, LOCKGREEN stashboxes are now available for pre-order on the company’s website. Morton said she hopes to start shipping them by late August, though the pandemic could lead to manufacturing delays. She and her husband designed the stashboxes themselves, including the print on the front, a commemoration of legalization in the commonwealth.

“We went through so many different prototypes and different designs,” she said. “There was a lot of research, love, and intention that went into it.”

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Anh Hatzopoulos: Offering Compliant Cannabis Banking & Business Tools

8/25/2021

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Banking is consistently an issue for cannabis entrepreneurs and as the industry gathers momentum—and the country slowly inches toward significant reforms—the demand for cannabis-friendly financial services is growing. Dama Financial launched in 2017 to help fill that need and over the years has developed a comprehensive suite of financial services to help cannabis companies operate and scale their business.

In this Q&A, Dama Financial’s Co-Founder and CEO Anh Hatzopolous discusses how she and her co-founders’ backgrounds in technology and finance positioned them to solve one of the cannabis industry’s biggest pain points, explains how Dama’s services have evolved over the years, and sheds light on common misconceptions in the cannabis industry about banking. Anh also shares the stories behind Dama’s biggest obstacles, their greatest successes, and more!

Check out the full interview below.

Ganjapreneur: What kinds of services does Dama offer to cannabis businesses?

Anh Hatzopoulos: We offer essential tools cannabis companies need to thrive. In addition to providing access to a full suite of FDIC-insured banking services, our business toolkit includes cash management solutions, low-interest installment loans, secured credit cards, consumer payments, and payroll. All our products and services are easily managed in one place through a simple online interface.

What was the inspiration for Dama’s various tools and business services?

It’s pretty simple, actually. Cannabis companies need access to banking, not just to professionalize their operations, but to greatly improve public safety by removing cash from the streets. But for too long no one was offering it to them. My partners George Gresham, Dan Henry and I are experts in financial technology and payments, so we created Dama to meet this demand. We started off by partnering with banks to provide access to FDIC-insured banking services, but we quickly realized that cannabis operators were also lacking access to fundamental business tools that solve real problems. So we expanded to become the one-stop shop that we are now.

What was your career before co-founding Dama?

All three of us spent years helping underserved communities that were locked out of banking—including many used to operating in cash—because the banks weren’t set up structurally to service them. At Netspend we helped resolve this issue for more than 10 million consumers. Then we recognized that the cannabis industry had a similar problem but for business banking, so we leveraged our deep expertise in both banking and payments to solve it.

What has been Dama’s biggest obstacle in serving the cannabis industry?

The biggest obstacle is awareness. Many cannabis operators have had terrible experiences with all things banking, so we need to get that word out that this is a legitimate solution. We have relationships with banks that are ready and waiting to offer cannabis businesses FDIC-insured banking services. That used to be the biggest problem facing the industry, but now it doesn’t have to be.

The cannabis industry has a notoriously difficult time accessing financial services. Congressional proposals like the MORE Act and now the Cannabis Administration and Opportunity Act suggest that federal reforms could be on the horizon, but has the situation actually changed for cannabis operators?

While there’s still a lot of work to be done on the federal front, we want to drive immediate and positive change for the industry, which is still mostly unlicensed. We’re working to accelerate the standardization of—and raise the standard for—how banks operate with cannabis businesses, which deserve access to the same financial products and services other industries take for granted. Banking is essential for any business to flourish. We’re harnessing our payments and fintech expertise to make it available to every cannabis company that wants it.

How did you first approach banks to discuss their working with the cannabis industry—did that require careful effort or explanation?

The threat to public safety posed by cash-intensive industries is broadly recognized, and bank executives who feel a sense of responsibility to their communities want to do something about it. We created Dama to solve a serious problem, and like-minded, innovative leaders are eager to work with us because we help them be part of the solution. In addition, banks that partner with us can make a lot of money by receiving a generous revenue share—and they pay us nothing in return.

How have clients reacted to your suite of business and financial services? Do you have a most popular, or most utilized, offering?

Cannabis companies have been notoriously underserved with sustainable transparent business tools, so our entire suite of services has been extremely successful. The product that has seen the wildest adoption is our line of integrated smart safes. They immediately increase operational efficiency and security, and our customers love the quick access to funds.

What is the biggest misconception you encounter about doing business in the cannabis industry?

Many people still think that banking cannabis is illegal, when in fact FinCEN itself has provided some guidance on how to bank cannabis. And the Department of Justice (through Merrick Garland) recently stated that prosecuting state-legal cannabis operators is not a priority. The reality is that banking cannabis is a risk-based decision, much like banking alcohol or casinos. We adhere to Cole Memo guidelines, follow all FinCEN rules (as well as BSA/AML requirements), and stay current with state and federal regulations to ensure that our bank partners remain fully compliant.

Do you have a favorite achievement or success story since launching Dama that you could share?

The same thing happens regularly: We get an unsolicited call from an overjoyed, often incredulous Dama customer who had been kicked out of 10 banks before finding us and is now—finally—running their business safely and transparently without living in fear of a sudden account shutdown. Legal cannabis operators are hardworking people who deserve access to critical business tools such as banking, payments and payroll, and we’re proud to be able to provide them with access to it.

Thank you, Anh, for sharing your expertise and answering our questions. You can learn more about Anh Hatzopoulos and Dama Financial at DamaFinancial.com.

End

U.S. Government Invests $90K in Hemp Insulation Firm

8/25/2021

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The U.S. Department of Energy (DOE) invested in a project designed to improve insulation made from hemp fibers, Marijuana Moment reports. The DOE awarded Hempitecture and its COO Tommy Gibbons a $90,000-per-year stipend and as much as an additional $200,000, the report says.

Hempitecture manufactures a hemp wool product that is highly thermal resistant, has a low carbon footprint, and is described as “the most sustainable, high performing insulation material on the planet.”

“The Department of Energy is interested in the decarbonization potential of insulation and other building materials made from hemp fibers.” — Gibbons to Hemp Build Magazine

According to the DOE project description, Hempitecture “plans to conduct research and testing on new, proprietary blends of its insulation material to improve its insulation value and fire resistance” and improve “onshore insulation manufacturing using industrial hemp waste from American farmers.”

Looking to fulfill a campaign promise by President Joe Biden (D) to use more clean energy and reduce carbon emissions, the DOE said, “an emphasis on healthy and low carbon building materials has sparked a search for solutions from consumers and government to rebuild better infrastructure and reduce the massive footprint of the built environment.”

This is just the latest push into the hemp space by the federal government. In April, the Environmental Protection Agency awarded 24 grants through its small business innovation research program. One of the grants was awarded to Earth Merchant, a Washington-based hemp brick manufacturer. In 2019, the agency awarded a $12,000 grant to a student-led research team at the University of California, Riverside studying industrially relevant renewable fiber for construction.

The Moment also reports that a group of allies of former President Donald Trump (R) seeks to use hemp bricks from a Kansas-based hemp firm to build a privately-funded wall along the US-Mexico border.

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New Mexico to Stop Enforcing Old Medical Cannabis Purchase Limits

8/25/2021

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A New Mexico judge last week ordered the state Department of Health and the Regulation and Licensing Department to stop enforcing the old medical cannabis purchase limits and begin operating under the rules included in the state’s adult-use law, or argue why the agencies should continue enforcing the old limits, the Santa Fe New Mexican reports. The ruling comes in response to a petition by a medical cannabis patient that argues the continued enforcement of the old limits is illegal.

Under the old law, medical cannabis patients can purchase up to 8 ounces over a 90-day period, while under the broad legalization law, adults 21-and-older can purchase up to 2 ounces at a time. Adult-use sales in the state are expected to commence in April.

In the writ, State District Judge Benjamin Chavez said that state agencies named in the petition could choose to appear in court and argue why they should not comply with the court’s order.

Jacob Candelaria, the attorney for the patient who is also a state senator, said his client “is certainly encouraged and appreciative” of Chavez’s decision.

“[The decision] recognizes neither the Department of Health or Regulation and Licensing Department can take rights away from medical cannabis patients that they have under state law.”—Candelaria to the New Mexican

A spokeswoman for the Regulation and Licensing Department’s Cannabis Control Division told the New Mexican that “the Cannabis Control Division is reviewing the writ and does not comment on pending litigation.”

“CCD is committed to ensuring that medical cannabis patients can get the medicine they need in accordance with the law,” the spokesperson said.

The Department of Health declined to comment on the pending litigation to the New Mexican.

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Medical Cannabis Bill Advances in North Carolina

8/25/2021

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The North Carolina Senate Judiciary Committee on Tuesday advanced a medical cannabis bill that has bipartisan support from lawmakers on both sides of the aisle, the News & Observer reports. The measure moves next to the Senate Health Care Committee before making its final stop at the Rules and Operations Committee before moving to the chamber for a vote by the full chamber.

The Judiciary Committee added several amendments, including banning medical cannabis smoking in public, while driving, and within 1,000 feet of schools and churches; narrowing the number of qualifying conditions, including removing language allowing physicians to recommend medical cannabis for any condition they deemed necessary not covered explicitly under the law; adding a provision allowing anyone with a terminal condition and prognosis of fewer than six months to live, and adding a section outlining various requirements doctors will have to meet before recommending medical cannabis.

Democratic State Sen. Natasha Marcus said the measure could be improved were it to include allowing medical cannabis as a replacement for opioid prescriptions for chronic pain patients, which she said would lead to fewer opioid-related deaths in the state.

Pat Oglesby, a former business and law professor at the University of North Carolina, who has worked on medical cannabis issues in other states, said that lawmakers should also consider removing language in the bill that requires cultivators to have at least five years of experience with “cultivation, production, extraction, product development, quality control, and inventory management of medical cannabis in a state-licensed medical or adult-use cannabis operation.” Oglesby said that there is likely almost no one in the state that could meet those requirements.

Earlier this month, The Eastern Band of Cherokee Indians passed an ordinance to legalize medical cannabis on tribal land, becoming the first location in North Carolina to allow its use.

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German State Invests €800K into Hemp Startup

8/25/2021

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The German state of Baden-Württemberg is funding hemp supplier Signature Products with about €800,000 ($938,983 USD) for the development of a regional hemp protein value chain, EU-Startups reports. Signature Products is one of the largest ‘Made-in-Germany’ hemp suppliers in Europe.

Signature Products Managing Director Florian Pichlmaier described the state committment as a signal toward sustainable, plant-based products—especially for hemp.

“We are already looking forward to job creation, joint development and research with the University of Hohenheim, as well as the delicious regional consumer products, which we hope will soon be found in food retailers.”—Pichlmaier to EU-Startups

Signature Products focuses on hemp raw materials such as seeds, protein, extracts, and cannabinoid extraction. The company has launched over 40 private label customers in Germany and is currently expanding into Spain, France, and other European Union countries, the report says. Its BUDDY brand serves as a market research brand to help Signature better understand its customers and their needs.

The company plans to develop protein-rich foods using hemp, including pasta and tofu, using hemp cultivated in the region. The project aims to creates regionally produced food that is more sustainable, increasing the self-sustainability of Germany, while creating agriculture and food production jobs, the report says.

The investment by the state is part of the BIPL-Innovation funding program.

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Alleged Hemp License Fraud Scheme Leads to Indictment

8/24/2021

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A Texas man has been indicted on theft charges after allegedly bilking investors out of tens of thousands of dollars he said would be used to purchase a hemp license, according to an affidavit released by the Travis County District Attorney’s Office outlined by Patch. Keenan Lopez Williams is accused of misrepresenting the processes to obtain the license and lied about how he spent about $77,500 of investors’ money.

Williams, 53, told investigators with the Texas Rangers that he had used the funds to pay consultants, cultivators, and breeders for information but during the investigation, officers found the money was being used for “personal finances,” the report says.

Brad Weatherford, the Texas Ranger who investigated Williams, said that Williams claimed he had connections to politicians and elected leaders.

“I reviewed Keenan Williams’s Facebook public page, which has photos of Keenan Williams and a number of state and federal elected officials, thus giving credibility to Keenan Williams’ deception of providing certain services to guarantee a hemp license.”—Weatherford in a statement via Patch

Williams was released on a surety bond. He was first arrested in connection with the scheme in February 2021.

In May, Todd Malcolm Smith, a political consultant to Texas Agriculture Commissioner Sid Miller, was arrested on charges that he took cash and campaign donations in exchange for access to state hemp licenses, according to Hemp Today.

Legal documents outlined by Hemp Today suggest Williams and Smith attempted to collect as much as $150,000 for early access to “guaranteed” Texas hemp licenses. The fee for a hemp license in Texas is $300.

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Michigan Attorney General Files Brief Supporting Employees Fired for Cannabis Use

8/24/2021

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Michigan Attorney General Dana Nessel on Monday filed an amicus brief with the state Unemployment Insurance Appeals Commission (UIAC) arguing that employees fired solely for their off-the-clock cannabis use should still qualify for unemployment benefits.

The brief focuses on three cases before the UIAC and says the commission’s ruling will “directly impact many law-abiding Michigan workers who may be terminated for the use of marijuana.”

“The People reserved for themselves the personal freedom to consume and cultivate marijuana, and the State cannot deprive an individual of unemployment benefits for simply engaging in this legal activity. Employers still generally retain their ability to hire and fire at will, but Michigan employees need not question whether their legal, off-duty conduct will leave them without unemployment benefits should an employer exercise that ability. Arguments to the contrary hinge on outmoded understandings of marijuana that the People of Michigan have rejected, once and for all.”—Nessel in the amicus brief

“Nobody over 21 can be penalized or denied any right or privilege solely for legally using marijuana, and employers cannot control their employees’ private lives by calling the legal use of marijuana outside of work hours ‘misconduct,’” Nessel added in a press release

In none of the three cases were the employees fired for being impaired on the clock or consuming cannabis on the property of their employer.

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Brewery Partners with Cannabis Brand on Alcohol-Free, THC-Infused Beer

8/24/2021

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St. Louis, Missouri-based O’Fallon Brewery and SWADE Cannabis are teaming up on a non-alcoholic, THC-infused beer called Mohi. Each can contains 5 milligrams of THC.

Brian Owens, head brewmaster for O’Fallon Brewery described the process as “truly unique,” starting with the traditional beer recipe and removing the alcohol in a vacuum under strict temperature controls.

“We determined that consumers who like craft beer would also want similar options for non-alcohol beer.”—Owens in a press release

Stephanie Cernicek, CSO of BeLeaf, the parent company of SWADE, said the brew has “a refreshing orange citrus and vanilla flavor” and, because it contains nano-emulsified THC, “the onset occurs quickly and stronger than its traditional counterpart, usually within the first 15 minutes, and gives the patient full control of their experience.”

Mohi is available to medical cannabis patients beginning this week at SWADE locations throughout Missouri.

BeLeaf Medical CMO Mitch Meyers said the company thinks “the brand will be a favorite.”

“We have seen the immediate embrace of THC-infused beverages,” Meyers said in a statement, “and the growing buzz around alcohol alternatives in society as a whole, so we knew the demand for new and better adult beverage options was exploding beyond the cannabis world and O’Fallon Brewery was the perfect place to start.”

Beer and cannabis infusions have become more commonplace as legalization programs spread throughout the U.S. In April, Canada’s Canopy Growth signed a distribution deal with alcohol distributor Southern Glazer’s Wine & Spirits for its line of CBD-infused beverages. In 2019, Hexo, another Canadian cannabis producer, partnered with beer-maker Molson Coors Brewing Company for a CBD beverage joint venture in Colorado.

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NECANN: Northeast B2B Cannabis Conventions

8/24/2021

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In 2015, medical cannabis was legal in Massachusetts but dispensaries had yet to open. Simultaneously, the push for adult-use legalization was losing its momentum. The regulatory standstill frustrated the founders of NECANN, who were long-time believers in the power of cannabis medicine. Their first event in 2015 was Founder and President Marc Shepard’s response to these unfavorable conditions. Many attendees had their first cannabis business experience at those early conventions. Shepard believes that in helping lead the event space, NECANN has helped increase the pace of the cannabis industry’s development.

“We thought that having an event that educated people on the medicinal potential of cannabis and the fact that recreational cannabis was a serious, lucrative, professional industry would help regain momentum,” Shepard said.

NECANN has expanded throughout the Northeast since its inaugural event in Massachusetts. Each event draws regionally relevant presenters and exhibitors, and both the speakers and advertorial efforts focus on stimulating growth in the local cannabis community. Speaker tracks represent the multi-faceted industry, covering cultivation, extraction, ancillary businesses, and more. Rather than stacking the speaker tracks with exhibitors, speakers bring unique niche expertise.

NECANN actively works to recruit relevant, knowledgeable speakers, which creates a dynamic roster of lectures and conversations that differ from the sometimes canned cannabis convention speaking circuit. The first keynote was an impromptu speech from legendary sportscaster Bob Lobel, who walked in as an attendee. Shepard approached Lobel to see if he would be interested in speaking, and he delivered a keynote to hundreds of attendees. More recently, in 2019, Niambe McIntosh delivered the keynote on how social justice must be a guiding principle in the multi-billion dollar cannabis industry.

The insightful programming draws attendees who are equally interested in the exhibition floor. In addition, NECANN has built advertising opportunities that help exhibitors convert booth visits to sales. There are presenting and programming sponsorship opportunities that can be tailored to individual advertisers. The team, who understands that legalization efforts are often community-led, also donates 10% of the exhibit floor’s booth space to local activists and community leaders. Businesses who showcase on a NECANN floor will have the chance to meet local industry leaders, learn about the regional market and make lasting business connections.

For attendees, the draw is the proximity to education, career opportunities, and entrepreneurial ventures. NECANN ticket prices remain two to 10x lower than their competitors despite robust attendance. The affordability allows small businesses to gain a foothold through networking and education, creating a more diverse local industry.

“Cannabis is going to be a billion-dollar industry in this state — more than enough to go around. Our goal is to help make sure a fair share of it stays with local businesses & communities,” said Shepard. “Advocacy for access to affordable medicine and education for patients remain standard fixtures in the programming for all of our events, and medical-focused non-profits make up the majority of our donated booths.”

Lastly, while most states that legalize cannabis begin to prioritize the adult-use shops and producers, NECANN knows that this regulatory swing left many patients behind without their trusted products, support, and familiar dispensaries. Therefore, both the speaker and advertising content are structured around keeping the patients in mind, which will hopefully carry over into the legalized state economies. The NECANN team will focus on this positive impact as they continue expanding into newly legalized medical and adult-use states.

Since its founding, NECANN has grown alongside many U.S. cannabis businesses while maintaining its foundations of building local businesses and preserving medical cannabis. To learn more about exhibiting or attending the upcoming NECANN events in the Northeast, visit NECANN.com.

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Wyoming AG Approves Cannabis-Related Ballot Initiative Language

8/24/2021

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Wyoming Attorney General Bridget Hill (R) has approved the language of two cannabis-related ballot initiatives, the Associated Press (AP) reports. Brought forward by the Wyoming chapter of NORML, one proposal asks if medical cannabis should be legal in Wyoming and a second question relates to decriminalizing cannabis in the rural state. NORML says they will begin collecting voter signatures on or around September 1.

“We’ll be hitting events, going door to door. We intend to get it all wrapped up by February.” — Bennett Sondeno, Wyoming NORML’s Executive Director, via the AP

Facing an uphill battle in one of the only states with no cannabis reform laws of any kind, activists must gather 15% of signatures from the number of voters recorded in the last general election in at least 16 of the state’s 23 counties. These signatures must be turned into the Secretary of State’s Office by February in order to place the proposal on the 2022 ballot, the report notes. Furthermore, all nine of Wyoming‘s past nine ballot initiative signature-gathering campaigns, including a 2017 proposition to legalize medical cannabis, failed to make their way onto the ballot. The last ballot initiative to pass in Wyoming was a 1992 railroad safety measure, according to the AP.

Despite the challenges, a 2020 study by the University of Wyoming’s Wyoming Survey and Analysis Center revealed 54% of Wyomingites support broad cannabis reforms. Digging deeper into the data, researchers found that 75% of those polled supported cannabis decriminalization, and 86% favored medical cannabis.

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Cannabis Brand Sues Convicted Sheriff’s Captain Over Illegal Cannabis Trade 

8/23/2021

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March and Ash, a dispensary chain in California, is pushing back against the unregulated cannabis market in unincorporated San Diego County with an anti-racketeering, false advertising, and unfair competition lawsuit, the Voice of San Diego reports. The suit is an attempt to punish the illegal cannabis trade in the county where licensed cannabis operators are banned and unlicensed dispensaries have thrived.

Modeling the suit after Federal Racketeer Influenced and Corrupt Organization (RICO) actions, the lawsuit names ex-San Diego County Sheriff’s Captain Marco Garmo—who is serving two years in prison on weapons and corruption charges—and the San Diego Reader, a local media outlet accused of hosting advertising for illegal cannabis dispensaries. The suit also names six other defendants, including ATM operators, landlords, and an unlicensed edibles brand, the report says.

“For people who don’t live here, it’s hard to grasp how out of control this got in Spring Valley and certain areas of El Cajon and Lakeside,” Bret Peace, the general counsel for March and Ash, told the Voice. “There were stores on seemingly every major street with blinking green lights, open 24 hours, with sign spinners and ads in the Reader.”

The former Sheriff’s Captain Garmo recently pleaded guilty to trafficking firearms out of his office and to an array of corruption charges associated with illegal cannabis shops around the county. One case involved Garmo tipping off his cousins to an upcoming enforcement raid, resulting in the dispensary facing no charges.

Attorney Cory Briggs told the Voice that “the purpose of the lawsuit is to put an end to the illegal competition” faced by licensed dispensaries.

“It’s law enforcement’s job to do that, but Marco Garmo had some sort of mob monopoly on the law enforcement and laws weren’t being enforced in his part of the county like they were supposed to be. So, entities like March and Ash are responding to unfair pressures.” — Briggs, via the Voice

Briggs said his team hired their own investigator who used phone records and video surveillance to make their case.

“All of this was out in the open,” he said in the report. “They just got used to operating with impunity.”

In their own effort to push back on the illegal cannabis trade, county officials in January passed a draft ordinance allowing legal cannabis firms to open in unincorporated parts of the county; however, the final draft is not expected until early Fall.

The county is seeking more funding and receivership authority to combat the illegal dispensaries, the report says. According to a recent California State University, San Marcos study, San Diego has shut down 83 unlicensed shops since 2018. These enforcement numbers reflect a 2019 report that estimated the California illegal cannabis market makes up $9 billion of an 11.9 billion industry, putting legal cannabis at a nearly $3 billion deficit.

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Illinois Bill Would Set Limits for Fireable Levels of THC

8/23/2021

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A bill proposed in Illinois would prohibit employers from firing—or refusing to hire—workers simply for a positive cannabis test, according to a Chicago Tribune report. State Rep. Bob Morgan (D) told the Tribune that the intent of the law “is to categorize cannabis use on personal time” the same way the state treats any other substance so long as workers are not impaired in the workplace.

The law wouldn’t apply to workers in safety-sensitive positions and federal employees.

Todd Maisch, president and CEO of the Illinois Chamber of Commerce, said the organization opposes the reforms because it could lead to more workers using cannabis. The chamber didn’t oppose the state’s legalization law because it included protections for employers, but Morgan’s proposal would undermine those standards, Maisch said in the report.

The proposal would allow employers to continue with pre-employment and random drug tests, with a “zero-tolerance” policy but employers would be required to allow up to the driving-while-impaired limit, which is 5 nanograms of THC per milliliter of blood, or 10 nanograms of THC per milliliter of saliva, urine, or other bodily fluid.

The bill was filed late last month but has not yet been assigned to any legislative committees.

Illinois has one of the nation’s hottest cannabis markets. Last May, cannabis tax revenues in the state surpassed those of alcohol.

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New Jersey Cannabis Brand to Provide Cannabis Prisoners with Commissary Fund

8/23/2021

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New Jersey-based cannabis company REEForm NJ is launching an initiative that will see a portion of the proceeds from every sale of its products in the Garden State sent directly into the commissary accounts of individuals serving time in the state for non-violent cannabis crimes, Bezinga reports.

Weldon Angelos, the founder of REEForm NJ, was sentenced to 55 years in prison for $900 worth of cannabis. He served 13 years of that sentence before being released on clemency by former President Donald Trump (R).

“Every time a consumer purchases our products, they are not only getting their medicine, but they’re also putting money in the hands of someone unjustly incarcerated for cannabis.” — Angelos to Bezinga

The company plans to provide New Jersey retailers with cannabis products that will directly benefit those incarcerated people.

REEForm NJ Co-Founder Brendon Robinson said that “social equity shouldn’t be leftovers and it shouldn’t be an afterthought,” noting that the U.S. “spent $50 billion per year on the War on Drugs.”

“I’d like to see that same energy put into remediating the problem,” he told Bezinga. “We’d like to see every dispensary in the state participating in this program, it’s truly a great cause.”

Co-Founder Stanley Okoro added that the drug war “has ravaged countless families and communities, in particular the African American and Latino communities.”

“Providing restitution to those that are currently incarcerated for cannabis offenses is one of the many steps that must happen to rectify the damage that has been done and sadly continues to this day with cannabis persecution and criminalization,” he said.

REEForm NJ is a subsidiary of the California-based REEForm LLC.

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Ohio AG Approves Summary Language of Adult-Use Petition

8/23/2021

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The Ohio Attorney General’s Office on Friday approved the summary language of the petition to legalize adult cannabis use in the state. The approval comes about two weeks after Attorney General (AG) David Yost rejected the Coalition to Regulate Marijuana Like Alcohol’s initial summary after determining it wasn’t “fair and truthful.”

“Next in the process, the Ohio Ballot Board must determine whether the proposal contains a single law or multiple laws,” the AG’s Office said in a press release announcing the language approval.

After the board certifies the petition, campaign organizers must collect signatures from registered voters equal to at least 3% of the vote cast in the last gubernatorial election. Additionally, those signatures must come from voters in at least 44 of Ohio’s 88 counties and, for each of those counties, the number must equal at least 1.5% of the vote cast in the last gubernatorial election, the AG’s Office said.

If the group gathers the 133,000 valid signatures, the bill would be sent to Ohio lawmakers who would have four months to approve the bill. If they don’t act, the group would have to collect another 133,000 valid signatures to put the issue to voters.

The initiative seeks to make it legal for adults 21-and-older to buy and possess 2.5 ounces of cannabis and grow up to six plants inside their homes. The proposal would allow the state’s current medical cannabis operators first shot at adult-use licenses and give them exclusive rights for two years.

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NBA Star Kevin Durant Partners with Weedmaps to Focus on Destigmatizing Cannabis

8/20/2021

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National Basketball Association (NBA) player Kevin Durant is partnering with Weedmaps to destigmatize cannabis with a series of podcasts and video content under his Boardroom media banner, ESPN reports. Durant, a small forward for the Brooklyn Nets, told ESPN that “it’s far past time to address the stigmas around cannabis that still exist in the sports world as well as globally.”

“This partnership is going to help us continue to normalize those conversations, as well as create content, events, and a lot more through our Boardroom media network. This is just the beginning for us.”—Durant to ESPN

Cannabis is banned by the NBA; however, prior to the 2020 season, the league halted its testing program and didn’t relaunch it in the 2020-21 season, according to the report. The NBA still does drug testing and last month suspended Toronto Raptors player Jalen Harris for a year due to violations of the league’s anti-drug policy. The last NBA player to be suspended for cannabis use was Thabo Sefolosha in 2018.

Durant said he hopes that his peers in the league will join him in discussing the benefits of cannabis. He did not comment on his personal use.

Sefolosha, who didn’t play last season after 14 years in the NBA said he is “not one to advertise marijuana and it’s not something I’d encourage my kids to do.” He added that he doesn’t wear his suspension “as a badge of honor.”

“I was fighting internally to change the rules. It’s something that should’ve been dealt with a long time ago. I understand the league doesn’t want to promote it,” he told ESPN. “I don’t want to send the wrong message. But it’s a happy substitute for harder drugs, ones the team doctor might even give you, and alcohol, and I had to learn that on my own.”

Other former NBA players have launched cannabis businesses or invested in the industry after their retirement from the league; however, Durant’s partnership with Weedmaps is the furthest an active player has ventured into the industry.

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Hawaii Bans Smokable Hemp and Cannabinoid-Containing Gummies

8/20/2021

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Hawaii regulators last week banned CBD gummies and beverages, and all smokeable hemp products. Under the new rules, hemp-derived cannabinoid products can only be in tablets, capsules, softgels, gelcaps, powders, or tincture form, or for topical application to skin and hair.

The regulations also ban vape liquids containing hemp-derived cannabinoids.

“These rules are the next step toward regulating the growing hemp industry in Hawaii in a way that provides local hemp farmers a legal pathway to bring consumable hemp products to market while protecting consumers by requiring lab testing for contaminants and labeled cannabinoid content.”—Hawaii Department of Health Food and Drug Branch in an August 9 announcement

The state ended its pilot hemp program last year and migrated to a permanent U.S. Department of Agriculture-approved program last year. According to the Hemp Industry Daily Fact Book, the program had about 57 licensed cultivators as of October 2020. All applicants must seek approval directly from the USDA.

The new rules could make hemp production in Hawaii less desirable. In a 2020 interview with Hemp Grower, Ray Maki, owner of Permaculture Kaua’i Nursery and Farm, said that cultivators in the state had a “steep learning curve” and that “Hawaii is at a major disadvantage to other states in growing hemp at any kind of scale” due to “day length.”

Daylight hours in Hawaii range from a high of 13.5 hours around the summer solstice to 11 hours in mid-December, and the shorter daylight hours tend to trigger hemp plants’ flowering phase earlier than intended, and growers also face high humidity and high winds.

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New Jersey Releases Initial Rules for Adult-Use Cannabis Industry

8/20/2021

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New Jersey’s newly-released cannabis industry regulations include social equity provisions, microbusinesses, and application fees as low as $100. The rules were approved Thursday by the state Cannabis Regulatory Commission (CRC).

The rules establish three types of cannabis businesses that will receive priority review and approval in the application process:

  • Social Equity Businesses – which are owned by people who have lived in economically disadvantaged areas of the state or who have past convictions for cannabis offenses;
  • Diversely Owned Businesses – which are minority-owned, woman-owned, or disabled veteran-owned and certified as such by the New Jersey Department of the Treasury in one or more of the listed categories; and
  • Impact Zone Businesses – which are located in an Impact Zone (municipalities with a large population, high unemployment rate, or high numbers of crime or arrests for cannabis) owned by people from Impact Zones, or employ residents of Impact Zones.

Gov. Phil Murphy (D), said the regulations “reflect the CRC’s commitment to transparency and social equity.”

“Prioritizing applications from women and minority entrepreneurs, from business owners living in economically-disadvantaged communities, and from small business owners will ensure the market grows the way we envisione—in a way that is socially equitable and reflective of our state’s diversity.”—Murphy in a statement

Under the rules, the state will consider an operation a microbusiness when it has less than 10 employees and premises no larger than 2,500 square feet. Application fees for microbusinesses will be as low and $100, with annual license fees ranging from $1,000 for a microbusiness to $50,000 for a cultivator with up to 150,000 square feet of cultivation capacity.

Cannabis industry employees will have to be licensed by the state and will have to pay a $25 fee annually for the ID Card and complete a brief, CRC-approved, training course.

New Jersey Cannabusinesses will be allowed to advertise, “but with significant restrictions,” the summary of the rules states.

Advertising will only be allowed on mediums where the audience is determined to be primarily over the age of 21. TV and radio ads will only be permitted between 10:00 PM and 6:00 AM, and advertisers will not be allowed to promote overconsumption or make any claims not supported by credible research.

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Virginia Lawmakers Mull Speeding Up Retail Cannabis Sales

8/20/2021

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

Virginia lawmakers on Tuesday weighed the possibility of launching retail cannabis sales earlier than planned at the inaugural meeting of the General Assembly’s new Joint Commission on Cannabis Oversight (JCCO).

Cannabis possession became legal in the commonwealth on July 1, but recreational sales aren’t set to begin until 2024. Some critics say that delay could be confusing for Virginians, who can now legally consume cannabis but have nowhere to get the drug unless they grow it at home, or receive it as a gift from someone who does.

“What we need to do is get the safe sales of marijuana out there as soon as possible,” said Del. Paul Krizek, a Democrat representing parts of Fairfax County.

Krizek warned that delaying the timeline for retail sales could shore up the illegal cannabis market while leading to unnecessary arrests for consumers who misinterpret the law.

“They’ve heard it’s legal, and they probably think that they can buy it legally,” he said. “It’s going to become more and more difficult to explain [the law] to the general public.”

As a fix, some lawmakers are looking into authorizing Virginia’s existing medical dispensaries to sell recreational cannabis on a temporary basis before retail sales officially begin in 2024. (Virginia allowed five medical operators—also known as pharmaceutical processors—to open dispensaries across the commonwealth in 2018.)

David May, a legislative staffer for JCCO, outlined the proposal, which he said was brought to the commission by medical cannabis companies themselves.

“The suggestion was to come up with a temporary permit process under which only—primarily pharmaceutical processors would operate, given some sort of skeletal rule system that they would operate under until the regulations went into place,” he said.

As part of that proposal, medical operators would invest in an “incubator program” to help future social equity applicants —cannabis entrepreneurs who were harmed by the War on Drugs—get started with their businesses.

May said the incubator program would prevent medical operators from getting a head start in the retail market while giving social equity applicants a financial boost.

But some lawmakers were skeptical.

“How would this work?” asked Del. Charniele Herring, a Democrat who was elected as the commission’s Vice-Chair on Tuesday. “I’m a little concerned.”

Herring cautioned that medical companies could take advantage of an incubator program by using a social equity applicant as a strawman—an owner in name only—for their businesses.

“The company says, we’ll incubate you, or we’ll sign you up with this and we’re a partner—wink—and then they get access to the show,” she said.

In response, May assured Herring that “there would be no tie” between medical operators and social equity applicants. Any funding for the incubator program, he said, would be managed and distributed by state regulators.

Herring still wasn’t convinced. “No one does anything for free,” she said.

Her concerns were echoed by local cannabis advocates who said on Wednesday that expediting retail sales could skew the market in favor of medical companies while undermining social equity components of the law.

“I carry the same concerns as Leader Herring around speeding up legal sales that will impact Virginia’s social equity entrepreneurs,” Chelsea Higgs Wise, executive director of Marijuana Justice Virginia, said in an email to The Outlaw Report on Wednesday.

“Private medicinal operators, like Columbia Care, have a skewed interest in maintaining a competitive stance in cannabis and are the inappropriate stewards of social equity in the Commonwealth. Legislators’ decision to defer its duties and ethical obligations to the private sector, circles the pitfalls of racialized capitalism which has eliminated opportunities for the creation of Black generational wealth in Virginia for 402 years.”

 

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Oklahoma Names Former Oil Lobbyist to Medical Cannabis Regulatory Agency

8/20/2021

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Oklahoma Gov. Kevin Stitt (R) has appointed a new director to the Oklahoma Medical Marijuana Authority (OMMA), the fourth appointment in the agency’s three-year history, the Tulsa World reports. Stitt named former staffer and lobbyist for the Petroleum Alliance of Oklahoma Adria Berry to replace Kelly Williams, but in a separate announcement, the OMMA announced Williams “will continue to work with the agency, providing her expertise and guidance.”

The move is in response to complaints from law enforcement that cannabis grow operations are being taken over by “criminal enterprises,” the report says.

“I am committed to tackling the major challenges that the explosion of marijuana in Oklahoma is causing across our state. Foreign nationals are gobbling up land in rural communities and drug traffickers are exploiting our laws and threatening our public safety.”—Stitt in a statement

Oklahoma has seen rapid growth in its medical cannabis market, prompting the legislature to pass a law allowing OMMA to contract with the Oklahoma Bureau of Narcotics and Dangerous Drugs Control to help with enforcement. Additionally, House Majority Leader Jon Echols (R), has expressed interest in moving OMMA out of the Department of Health and into its own agency or make it a part of the Alcoholic Beverage Laws Enforcement Commission, something Stitt, and the Senate oppose.

Echols said Berry and he “have worked together on marijuana legislation and other business issues, where we’ve been able to shape a working relationship built on trust.”

“I have the utmost confidence that Adria is going to be a tremendous addition to the OMMA team,” he said.

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Leafly Sues Florida Over State’s Ban on Third-Party Cannabis Orders

8/19/2021

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Seattle-based Leafly Holdings has filed a legal challenge contesting the Florida Department of Health’s (DOH) restrictions banning them and other third-party cannabis operators from doing business in the state, according to a News Service of Florida report. The action comes after the Health Department claimed in a February memo that Leafly’s business model—specifically the practice of patients ordering cannabis through third-party sites who then pass on the order to local dispensaries, where patients pick their order up—was “directly related to the cultivation, processing and dispensing” of cannabis.

The memo resulted in most if not all of the third-party, online, ordering websites and dispensary contracts being canceled in Florida, the report says. Leafly is now asking an administrative judge to reverse the decision, saying the DOH used an “unadopted and invalid rule” to draw their conclusions.

Prior to the DOH memo, which threatened to impose fines on dispensaries who continued to work with Leafly and others, many patients and shops relied on the sites to fulfill online medical cannabis orders, the report notes. In the memo, then-DOH Chief of Staff Courtney Coppola said regulators had received complaints about patients and caregivers procuring medical cannabis through the online services. Coppola, now a deputy chief of staff for Republican Gov. Ron DeSantis, said in the memo that dispensaries were barred from doing business with websites “directly related to the dispensing of marijuana or marijuana delivery devices.”

“Contracting with Leafly.com, or any other third-party website, for services directly related to dispensing is a violation of this provision.” — Courtney Coppola via Florida News Service

Leafly disagrees. Attorney Seann Frazier argued that “Leafly does not prepare, possess, purchase, transmit, distribute, sell or dispense any medical marijuana in Florida or elsewhere.”

“Leafly does not, and has never, dispensed medical marijuana to any qualified patient in Florida,” he said in the report. “And Leafly has never provided services directly related to the cultivation, processing, or dispensing of marijuana or marijuana delivery devices in Florida.”

In their countermotion, the DOH asks Administrative Law Judge Suzanne Van Wyk to dismiss Leafly’s challenge and to block the company from obtaining certain documents related to patient information, arguing that sharing patient information is a violation of state law. Additionally, the state argues that since it does not regulate Leafly, the firm has no standing to file the action in the first place.

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Eaze to Acquire Green Dragon & Create Industry’s Largest Delivery MSO

8/19/2021

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California-based cannabis delivery company Eaze has agreed to acquire Green Dragon, creating the largest multi-state operator (MSO) delivery operation and largest MSO headquartered in California. The combined company will serve customers and patients in four states.

Eaze currently operates in California and is launching in Michigan while Green Dragon operates in Colorado and Florida. The combined company will operate 42 delivery and storefront retail locations in a market area worth nearly $10 billion.

Over the past 12 months, Eaze completed $190 million in transaction value. Eaze CEO Rogelio Choy said over the last two years, the company has “achieved exponential growth over the last two years by successfully shifting to vertical operations and continuing to grow our loyal customer base.”

Last month, Eaze launched the first-of-its-kind shoppable cannabis app for Apple.

“Green Dragon’s airtight operations in Colorado and expansion into Florida’s booming market adds key operational capabilities to our national footprint and cements our leadership as California’s largest MSO. Together, we are well-positioned to leverage the market’s explosive growth now and into the future.”—Choy in a press release

Eaze’s average monthly revenue increased 75% between 2019 and 2020. In 2020, Green Dragon’s Colorado retail stores saw 39% growth, the companies said. Last month, Green Dragon opened its first two medical cannabis dispensaries in Florida and the company operates more than half a million square feet of cultivation and product manufacturing facilities.

The terms of the deal were not disclosed, and it still requires state and local regulatory approval.

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Tilray Acquires Outstanding MedMen Notes

8/19/2021

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Canadian cannabis company Tilray on Thursday acquired the majority of outstanding senior secured convertible notes of MedMen that were originally held by certain funds affiliated with Gotham Green Partners, LLC (GGP). Tilray said the deal—which is subject to regulatory approval—provides the company with “a path … to obtain a significant equity position in MedMen through the conversion of the notes and exercise of associated warrants following U.S. cannabis legalization.”

Irwin D. Simon, Tilray’s Chairman and CEO said the company has a “goal of $4 billion by revenue by the end of fiscal 2024. The investment we are announcing in MedMen securities today, one of the most recognized brands in the $80 billion U.S. cannabis market, is a critical step towards delivering on our objective as we work to enable Tilray to lead the U.S. market when legalization allows.”

“Our ability to maximize value from this game-changing transaction rests on the support of our shareholders at the upcoming Special Meeting to vote on our Authorized Shares Proposal, which will increase the number of authorized shares Tilray has available to not only complete this transaction, but also to execute on other strategic acquisitions. I cannot stress enough the importance of making our shareholders’ voices count to enable us to maximize our potential to create substantial value for our shareholders in the near-term and in the future.” — Simon in a statement

Tilray and its partners acquired an aggregate principal amount of approximately $165.8 million of the notes and the warrants, which were originally issued by MedMen and held by GGP. They represent 75% of the outstanding notes and 65% of the outstanding warrants, the company said in a press release.

Tilray’s interest in the limited partnership represents rights to 68% of the notes and related warrants held by the partnership, which are convertible into, and exercisable for, approximately 21% of the outstanding Class B subordinate voting shares of MedMen upon closing of the transaction.

During a conference call, Simon indicated Tilray could fully acquire MedMen once cannabis is fully legal in the U.S., Barron’s reports.

AdvisorShares Chief Operating Officer Dan Ahrens told Barron’s that Tilray was not actually buying a majority stake in MedMen due to current regulations, explaining that the Canadian firm is “buying convertible debt—and seem to be paying a lot for it.”

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Study: Cannabis Use in Australia Increased During Lockdown

8/19/2021

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Cannabis use has spiked in Australia during the coronavirus pandemic, according to a University of South Australia study published in Environmental Science and Technology Letters outlined by News Medical Life Sciences which also found methamphetamine use decreased more than 50%. In South Australia, alcohol use rates also fell 12% last year, the researchers found.

The researchers tested the levels of various drugs in the wastewater and compared those to previous samples. The study attributes the drop in methamphetamine use to the border closure, which prevented imports, but cannabis is produced locally. During the pandemic lockdown, cocaine use in Australia was also cut in half but returned to previous levels once restrictions were lifted.

Cobus Gerber, study lead author and an associate professor at the University of South Australia, said that “job cuts and loss of income could have contributed to the lower usage nationally, but it is more likely to be connected to disrupted supply lines.”

“This study provides an insight into the first four months of COVID restrictions in Australia and it remains to be seen what the longer-term effect of the pandemic will be.”—Gerber to News Medical Life Sciences

Dr. Richard Bade from the University of Queensland’s Queensland Alliance for Environmental Health Sciences, said another study found that in eight European cities use of cocaine, methamphetamine, and MDMA decreased just over one week last year. He noted, however, that an Austrian study, analyzing samples from one city, showed that methamphetamine use increased.

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