Search Results for "maine"

Bill to Legalize Psilocybin Therapy Introduced in Maine

4/30/2021

A bill filed in Maine would legalize psilocybin mushroom therapy without a medical diagnosis, and allow adults 21-and-older to legally buy the psychedelic and use it under the supervision of a certified psilocybin service practitioner, according to the Dales Report.

The measure would include a 15% tax on retail sales of psilocybin products and allow manufacturing in a vertically-integrated model. The measure directs the state Department of Health and Human Services to establish guidelines for psilocybin treatment, such as personal possession restrictions, product testing, and standards for psilocybin care providers.

The bill says that those recommendations should be designed “to otherwise make this Act as consistent as possible in substance to the laws governing psilocybin in Oregon,” the report says. During the November 2020 election, Oregon voters approved a measure to legalize psilocybin therapy and Washington, D.C. voters moved to decriminalize all psychedelic plants, representing a watershed moment for psychedelic drug reforms.

In February, New Jersey Gov. Phil Murphy signed legislation to reduce the penalties for the possession of psilocybin mushrooms from a third-degree crime to a disorderly person offense. Lawmakers in Missouri and California are also considering bills to add psychedelics to the state’s Right to Try law, and decriminalize the substances, respectively.

The Maine measure was referred to the state legislature’s Joint Health and Human Services Committee.

A separate bill already filed in the state would decriminalize all currently illegal drugs, subjecting offenders to a $100 civil fine rather than jail time, according to the Dales Report. The fine could be waived if a person were to undergo a health assessment.

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Portland, Maine Anticipates Wave of New Cannabis Business Openings

3/17/2021

Dozens of new cannabis businesses are expected to open in Portland, Maine in the coming weeks, according to the Portland Press Herald.

Portland’s acting Director of Inspections and Permitting Jessica Hanscombe said they have already approved two adult-use retail licenses and some 31 other shops are pending final approval. The city also received five medical dispensary applications and has approved one. Hanscombe said there are in total 59 retailer, manufacturing, and laboratory licenses awaiting the green light to open.

According to the report, she predicts there will be a “flurry” of openings over the next two weeks, with the remainder of retail shops likely opening by November.

“In the years I’ve been doing this, we’ve adopted different ordinances, but this is the first that’s so expansive. We hope to be a city every other city can look to for the best way to do this.” — Hanscombe, via the Herald

Maine’s adult-use cannabis marketplace officially launched five months ago but these are the first adult-use cannabis businesses to open their doors in Portland; notably, the city voted nearly 2:1 in favor of legalizing cannabis in the state’s 2016 referendum. After the city adopted an ordinance establishing a 20-shop cap that included a licensing point system based on various social equity considerations and economic situations, however, a federal judge ruled that the ordinance “discriminated” against out-of-state applicants.

In October last year, the City Council suspended the cap and voters made the recusal permanent in November. Now, nearly five months after Maine’s adult-use system went live, Hanscombe told the Herald that the city is granting licenses on a first-come, first-served basis, and the point system will only be used if applicants apply at the exact same time.

Portlanders also chose to lower the mandatory buffer between cannabis shops from 250 feet to 100 feet in November, which made way for even more cannabis businesses to open in the city.

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Maine Companies Launch Alcohol-Free, Cannabis-Infused Beer

3/11/2021

Maine-based Novel Beverage and Innovative Liquid Solutions have launched an alcohol-free version of Shipyard Brewing Co.’s Pumpkinhead beer infused with 5 milligrams of THC, NBC Boston reports.

Matt Hawes, Novel Beverage’s co-founder and CEO, said the company’s plan for “THC Elixir,” “has been in the works for a very long time.” The company also plans on brewing and bottling a version under Sea Dog’s Blue Paw Brand – a blueberry wheat ale. Pumpkinhead is a pumpkin-flavored recipe usually released in autumn. Both use nano emulsification technology.

“We’ll continue to see the THC beverage category continue to grow, and it will become a norm to see people at a party or at dinner who, instead of drinking alcohol, are having a THC drink.” – Hawes to NBC Boston

Several states that have legalized cannabis for adult use have passed regulations banning cannabinoids from alcoholic beers, including Oregon and Massachusetts. In 2018, the federal Alcohol and Tobacco Tax and Trade Bureau said it would not approve any alcohol formulations that include CBD.

However, several traditional alcohol companies have made cannabis-infused beverages, including California-based Lagunitas Brewing Company. Pabst Blue Ribbon has also lent its name to a cannabis-infused seltzer produced by former employees. In 2018, Molson-Coors announced a partnership with Hydropothecary Corporation to create a cannabis beverage startup.

Last year, Canadian cannabis firm Aphria announced it would acquire SweetWater Brewing Co. for about $300 million. SweetWater is known for terpene-infused, alcoholic seltzers and its 420 brand.

Multinational alcohol distributor Constellation Brands – whose brands include Corona beer and Svedka Vodka – last year upped its stake in Canada’s Canopy Growth to 38.6% after exercising $174.29 million worth of warrants.

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Large Employers in Maine Drop Cannabis from Drug Screening

2/15/2021

Several large employers in Maine are no longer testing employees or potential hires for cannabis, the Portland Press Herald reports. The companies are still testing for other illegal drugs but have decided to not include THC in their testing following the launch of legal sales last October.

Bath Iron Works Spokesman David Hench told the Press Herald that the company plans to hire more than 2,700 people this year and that precluding cannabis users for most positions was “not prudent.” Bath Iron Works is owned by defense contractor General Dynamics. The company will still include THC testing for safety-sensitive positions including security, fire and medical personnel, crane operators, and other positions requiring security clearances, along with those requiring Department of Transportation or U.S. Coast Guard approval.

MaineHealth, the state’s largest private employer with about 22,000 employees, stopped including THC screening last November. Spokesman John Porter said the changes were made “in light of evolving state law.”

Kristin Collins, an attorney with Portland law firm Preti Flaherty, told the Press Herald that “the simple fact that someone uses marijuana does not mean they’re going to be an unsafe employee.” She noted that federal guidelines require some employees to be tested for cannabis, such as those requiring a commercial driver’s license, some education programs, and jobs requiring the use of a firearm.

“The trend has been to take it out of their testing policies because (cannabis) use is so widespread and the testing doesn’t even come close to pinpointing whether the person is using on the job or not.” – Collins to the Press Herald

Last month, the Maine Office of Marijuana indicated plans to eliminate the drug testing requirements for medical cannabis industry applicants – a condition under current rules. Wellness Connection of Maine Managing Director Charlie Langston said that while the company does drug test applicants, a positive test doesn’t necessarily disqualify a potential employee and on-site cannabis use is not allowed and workers cannot be impaired.

Employers can still legally test applicants for cannabis. According to the state Department of Labor, 540 Maine businesses have state-approved drug testing requirements. In 2019, the agency found a 7% positivity rate among 26,173 drug tests performed in the state – the highest rate since the drug-testing program was created in 1989. Cannabis accounted for 92% of the positive tests, according to the report. The positivity rate for such tests was 4.8% in 2016, 5.7% in 2017, and 5.8% in 2018.

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Medical Cannabis is Now Maine’s Most Lucrative Crop

12/09/2020

Medical cannabis sales in Maine surpassed $221.8 million from January through November, making the crop the state’s most lucrative, outpacing potatoes, milk, hay, and wild blueberries, the Portland Press Herald reports. The total also represents a new annual sales record for medical cannabis, with still about three weeks left in 2020.

The figures include sales from Maine’s eight medical cannabis dispensaries and network of nearly 3,000 registered caregivers, who serve about 65,000 certified patients. The total does not include recreational cannabis sales, which began in October and reached $1.4 million in sales during its first month.

Patrick Anderson, CEO of Anderson Economic Group, which issues a monthly national cannabis market benchmark, told the Press Herald that the industry has “been participating in a national experiment” since the start of the pandemic in March.

“What we’ve learned is that no matter what, Americans are going to get their cannabis, alcohol, baking supplies and cars, regardless of the economy.” – Anderson to the Press Herald

Last year, medical cannabis sales in the state reached $109 million. Caregivers comprised 76 percent of the state’s 2019 sales totals, the report says.

Eric Maxim, a caregiver of seven years who opened Cannamax in October 2019, said that operators “didn’t know what to expect” with the pandemic-related lockdown but his business “has continued to grow throughout.”

“We are expanding our hours and hiring two employees,” Maxim told the Press Herald. “We aren’t going to go nuts, but we have seen a lot of people coming in looking for relief. Let’s just say I’m twice as happy as I thought I’d be.”

Maine officials recently approved rules allowing physicians to certify patients for any medical condition and allowing program reciprocity which, considered together, are likely drivers for the sales spike.

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First-Month Cannabis Sales in Maine Reach $1.4M

11/24/2020

Adult-use cannabis sales in Maine reached $1.4 million in their first month, averaging about $66 per transaction, the Portland Press Herald reports. The inaugural month was limited by supply shortages and in-store purchase limits.

Since recreational sales commenced October 9, six dispensaries have been licensed, reporting 21,194 sales worth $1,409,442 through November 8, according to Maine Office of Marijuana Policy (OMP) figures outlined by the Press Herald. The state received about $141,000 in tax revenues from the sales.

Flower accounted for about 76 percent of sales, with an average price of $16.67 per gram. Concentrates comprised 14 percent of sales while edibles – which were is short supply – made up the final 10 percent of sales.

Mark Humphries, owner of Northland Botanicals, said his average sale was about $70 until two weeks ago when he got his first delivery of edibles. He said edibles now make up about half of his sales and his average sale is closer to $90.

The report notes that, based on first-day sales in the state of nearly $100,000, sales were on pace to hit $2.9 million during the first month but supply shortages limited some shops’ hours and the coronavirus pandemic has led to many job losses in the state.

Erik Gundersen, director of the OMP, told the Press Herald that retailers showed a “commitment” to “enact COVID protocols to ensure a safe launch.”

“While it is easy to focus solely on the numbers, it is important to note that the Office of Marijuana Policy’s primary objective is maintaining the high standard of public health and safety we have set for the adult-use program.” – Gunderson via the Press Herald

Maine had the slowest recreational cannabis market rollout of any state that has approved the reforms – almost four years – due to legislative rewrites, vetoes by the former Republican governor, and the pandemic.

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Maine’s First-Day Cannabis Sales Reach Nearly $100K

10/12/2020

Maine cannabis sales reached nearly $100,000 on opening day but retailers faced product shortages and customers paid high prices – a story familiar to the rollout of most cannabis markets.

Nearly four years after voters approved the reforms, recreational cannabis sales began last Friday at dispensaries in South Portland, Bangor, Auburn, Stratton, and Northport. The Office of Marijuana Policy said those shops reported $94,000 in sales, which amounts to $9,000 in sales taxes for the state, WPFO reports.

Green Cures Owner Tanya Rollins told WGME that the business sold $7,000 in product from 7 a.m. to noon. She said business could have been better but was hampered on day one due to there being just one testing facility to serve the entire state.

Theory Wellness of Maine CEO Brandon Pollock said the company had limited how much customers could purchase on the first day. Under the voter-approved law, recreational use customers can purchase up to 2.5 ounces of a combination of cannabis and concentrates, but no more than 5 grams of concentrates.

“People have been waiting their entire lives for the repeal of prohibition, and we get to witness it here today.” – Pollock to WGME

Maine officials are expecting $6 million in sales tax revenues from the space – set at 10 percent – in the first partial year of sales along with $6.8 million in excise taxes, which only apply to growers on flower and seeds.

Rollins said she did not expect the state will reach those figures as growers and testing will have to catch up after the strong opening weekend.

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Adult-Use Cannabis Sales Launch In Maine

10/09/2020

Adult-use cannabis sales begin today in Maine nearly four years after voters in the state approved the reforms. Recreational use customers can purchase up to 2.5 ounces of a combination of cannabis and concentrates, but no more than 5 grams of concentrates.

According to WGME, state budget experts predict adult-use sales will reach more than $250 million in Maine by 2025. The state is estimating $6 million in sales tax revenues from the space – set at 10 percent – in the first partial year of sales along with $6.8 million in excise taxes, which only apply to growers on flower and seeds.

Currently, the state has licensed just five dispensaries for recreational sales in Bangor, Northport, Newry, and two in South Portland, the report says.

Thomas Winstanley of Theory Wellness, one of the license-holders in South Portland, said the company wants “to define what the future of cannabis can look like” and “help reverse the stigma” associated with cannabis.

While there are currently no testing requirements for the state’s medical cannabis products, adult-use products must be tested for potency and contaminants.

Kaspar Heinrici, of South Portland-based SeaWeed Co., said customers can “expect prices to be a little bit higher” due to testing costs and taxes.

Despite being legalized in 2016, the rollout of the adult-use program was delayed first by former Republican Gov. Paul LePage, who twice vetoed industry implementation bills, and then by the coronavirus pandemic.

New England now has two states with recreational cannabis sales – Maine and Massachusetts – while Vermont just legalized sales, which are not expected until 2022, after approving adult use and possession in 2018.

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Maine Issues First Adult-Use Cannabis Licenses

9/09/2020

Maine has issued six long-awaited recreational cannabis licenses including two retail stores that will be allowed to open to the public on October 9, the Portland Press Herald reports. The licensing is a major step toward adult-use sales in the state which were approved by voters in 2016.

In addition to the retail store licenses in South Portland and Northport, the Office of Marijuana Policy also approved the license for Nelson Analytics – the first testing laboratory approval – and cultivation licenses for businesses in Detroit, South Portland, and Auburn.

No licenses were awarded for manufacturing businesses in the first round, but regulators say they will continue issuing adult-use licenses up to and after the October rollout date for the industry.

Erik Gundersen, director of the OMP, told the Press Herald that Maine has “the unique distinction of being the only state to launch its adult-use marijuana program during a pandemic,” and warned of supply shortages in the first months of sales.

“The initial market will likely be limited in both accessibility and product availability, but the industry will evolve responsibly and provide safe, convenient access.” – Gunderson to the Press Herald

Under the state’s voter-approved law, daily purchases are limited to 2.5 ounces of flower or 5 ounces of concentrates. Edible potency is maxed out at 10 milligrams per serving and packages cannot contain more than 100 milligrams.

Officials predict the first full year of sales will reach $168 million, which would generate a minimum of $33 million in tax revenues. Officials expect an estimated 6,100 new jobs to be generated by the sector.

So far, just 52 of the state’s 453 cities and towns have opted into allowing adult-use sales with more expected to accept, or reject, the industry in the coming months.

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USDA Approves Hemp Plans for Maine and Missouri

9/08/2020

The U.S. Department of Agriculture last week approved the hemp plans for Maine and Missouri, bringing the total number of approved state plans to 22. For Missourians, it marks the first year that they can legally grow hemp in the state.

The Missouri Department of Agriculture said it had licensed 197 producers, and 75 Agricultural Hemp Propagule and Seed Permit Holders since opening up the licensing process, and that cultivators have registered 3,696 acres for growing the crop. The agency said federal regulators required no changes to the state’s proposed rules.

Maine has allowed hemp cultivation since 2016 and state agriculture officials said that hemp is grown in every one of Maine’s 16 counties. The 2020 program includes 110 outdoor licensees who have planted 362 acres of planted, and seven indoor cultivation licenses who have planted over 22,700 square feet of the crop. Jurisdiction over hemp in Maine is the responsibility of the Department of Agriculture, Conservation and Forestry.

In a statement, DACF Commissioner Amanda Beal called the industry “an important part of Maine’s agricultural sector.” However, the agency said that lawmakers will need to reconcile differences between state hemp law and federal hemp rules during next year’s legislative session. They did not indicate what changes are needed to settle the differences.

The USDA still lists 12 state programs as “under review,” four operating under 2014 programs, two drafting plans for review, four plans are pending resubmission, while 5 states are operating under USDA hemp producer licenses which are given to hemp farmers in states or tribes that have not developed plans. For tribes, the USDA has approved 34 of 42 hemp plans.

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Maine’s Adult-Use Market Launch Set for October 9

8/17/2020

Adult-use cannabis sales in Maine are set to commence on October 9, more than four years after voter approval and after two delays by a former governor and an “indefinite postponement” due to the coronavirus pandemic.

Office of Marijuana Policy Director Erik Gundersen called the announcement “a major milestone in honoring the will of Maine voters and a significant step toward launching a new industry in the state.”

“The public’s health and safety are at the forefront of every decision we make at the Office of Marijuana Policy. While we were poised to launch this new industry earlier this year, we were unwilling to sacrifice the high standards we have set for this program by launching during an emerging public health pandemic and in the absence of a testing facility. With the support of the public health community, municipalities across the state, and the industry we regulate, we have used the last few months to ensure this new industry is introduced to Maine consumers in a manner that is as responsible as possible.” – Gundersen in a press release

The OMP said it would begin issuing licenses for retail sales, cultivation, manufacturing, and testing on September 8. Businesses must undergo a three-step application process which includes conditional licensure and local approval before getting a license from the state.

Maine voters approved the reforms in 2016 but then-Gov. Paul LePage (R) twice vetoed the implementation bill passed by state lawmakers. Last October, officials anticipated adult-use sales would begin in March but those plans were derailed by the state’s lack of infrastructure and pushed to June. In April, officials indefinitely delayed the rollout of the program due to the coronavirus pandemic.

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Portland, Maine to Vote on Removing Cannabis Industry License Caps

7/28/2020

Voters in Portland, Maine will vote in November whether or not to remove the city’s cap on cannabis businesses, News Center Maine reports. The successful campaign comes more than two months after the state reached a legal agreement with cannabusiness that had sued the state that will prevent officials from enforcing an industry resident requirement.

David Boyer, who led the campaign, said removing the cap will allow for “a fair and open market” since “the state has proved it will not defend Maine from outside, big corporations” entering the state’s industry.

“At a time of such economic uncertainty, it does not make sense to cap legal jobs and legal businesses. We are confident that Portland voters will endorse cannabis regulations rooted in fairness and inclusivity this November.” – Boyer in a statement via News Center Maine

The campaign collected more than 2,400 petition signatures; 1,500 were required. The initiative will be read during an Aug. 3 City Council meeting, with a public hearing on the measure expected on Aug. 31.

Maine was sued by the Wellness Connection and Wellness and Pain Management Connection of Delaware, subsidiaries of High Street Capital Partners of Delaware, arguing that the residency requirement included in the state’s cannabis legalization law violates the commerce clause of the U.S. Constitution which forbids restrictive and discriminatory commercial regulations between the states.

In May, the Portland City Council voted to keep the residency requirements intact despite the outcome of the lawsuit against the state. Supporters of that decision said the city’s residency regulations would be easier to defend in court because unlike the state’s four-year residency requirement locals will get preferential treatment by the city only if it gets more than 20 applications and must break a tie among those with similar business experience, bank deposits, and employee wages.

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Feds Investigating Multiple Maine Cannabis Companies

7/22/2020

At least two Maine cannabusinesses are the target of a law enforcement investigation but officials have not yet indicated what the charges against the companies are, News Center Maine reports. The investigation is being conducted by the Maine State Police, the Federal Bureau of Investigation, and the Drug Enforcement Agency.

The court-approved investigation into Narrow Gauge Distributors and Homegrown Connection is part of an ongoing federal inquiry, officials told NSM, adding that there is no threat to the public.

Narrow Gauge is a cannabis and CBD cultivation and distribution company with a 60,000-square-foot facility in Farmingham. It bills itself as “the largest cannabis distribution company” in Maine.

Homegrown Connection is a hydroponics grow shop also in Farmingham.

Neither company has addressed Tuesday’s law enforcement action.

According to a Sun Journal report, law enforcement agents were filling U-Haul trailers with boxes marked “DEA Evidence” and filling a shipping container with plants confiscated from the facilities.

U.S. Assistant Attorney Craig Wolff did not provide a comment to either of the news organizations, saying it is an ongoing investigation.

Maine voters legalized cannabis for adult use in 2016; however, implementation of a taxed and regulated regime has been slow to materialize. First, the implementation bills were blocked by then-Gov. Paul LePage (R) and, more recently, by the coronavirus pandemic.

In May, the federal government said it would withhold $3.3 million in funding from the state for mental health programs for children because the state allows students to use medical cannabis.

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Maine Cannabis Coalition Files Suit Over Removed Industry Residency Requirements

6/03/2020

The Maine Cannabis Coalition has filed a lawsuit against the state for its decision to remove residency requirements for cannabis business licenses, the Portland Press Herald reports. The trade association says the decision by the state Department of Administrative and Financial Services violates Maine’s Marijuana Legalization Act.

The decision by the agency was in response to another lawsuit by Wellness Connection of Maine over the residency requirement. The Wellness Connection and Wellness and Pain Management Connection of Delaware, which are financially tied to international cannabis firm Acreage Holdings, filed the lawsuit against the state in April arguing that the residency requirement violated the commerce clause of the U.S. Constitution which forbids restrictive and discriminatory commercial regulations between the states.

The Office of Marijuana Policy, which is housed in the Administrative and Financial Services division, said it wouldn’t enforce the policy after the state Attorney General’s Office said the state was unlikely to beat the lawsuit in court because the state Supreme Court had struck down residency requirements in the past.

“Maine Cannabis Coalition and its members along with many other citizens fought hard for two years to make sure residency protections were included in the law. To have it all be ignored after all the hard work and efforts is extremely aggravating to the citizens and policy makers of Maine who expect no one to be above the law.” – MCC in a statement via the Press Herald

In the lawsuit, Maine Cannabis Coalition claims the decision to revoke the requirement hurts medical cannabis providers such as MCC co-founder Dawson Julia, a caregiver, and Christian Roney, who is seeking a recreational cannabis license, by increasing the number of entities competing for limited market share. Both Julia and Roney claim they relied on the competitive advantages provided by the residency requirement while developing their business plans.

As passed, the Maine law requires every officer, director, and manager of recreational cannabusinesses, and most of its ownership, to have lived and filed taxes in Maine for at least four years. That rule would have expired in June 2021.

The plaintiffs argue that the OMP doesn’t have the authority to abandon parts of the law that have not been struck down by a court or repealed by the Legislature and seeks an injunction preventing officials from awarding any licenses to out-of-state applicants, the report says.

The long-awaited rollout of the state’s adult-use cannabis industry was put on hold amid the state’s coronavirus response. OMP Director Erik Gunderson told the Press Herald that the decision to strike down the residency requirements would not further delay sales.

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Feds Withhold $3.3M From Maine For Allowing Medical Cannabis In Schools

5/21/2020

The federal government is withholding $3.3 million from Maine for mental health programs for children because the state allows students to use medical cannabis, the Sun Journal reports. The state won the funds in 2018 as part of a five-year grant for Maine-AWARE – a program to bolster social service infrastructure to support student mental health services in three of the state’s districts.

Maine received the funding for the first two years, but it was cut off due to Trump Administration policies that remove some funding for states that allow students to access medical cannabis. It’s unclear whether the changes will impact other grants received by Maine or how the rules may affect other states with legal cannabis programs.

Pender Makin, the state commissioner of education, told the Sun Journal that officials have an obligation under the medical cannabis law to provide access to children if they “have written certification from their medical provider indicating their need for medical marijuana to receive such treatment while at school.”

A research letter published in JAMA Pediatrics last year suggested that Maine had the highest rate in the country of children diagnosed with depression, anxiety, or attention deficit disorder. More than 25 percent of Maine children 6 to 17-years-old had at least one of the disorders while about half of them received no professional treatment or counseling.

The Substance Abuse and Mental Health Services Administration, a division of the Health and Human Services agency, said the funds are meant for programs that focus on “partnerships and collaboration between state and local systems to promote the healthy development of school-aged youth and prevent youth violence.”

The Maine-AWARE initiative is meant to ensure all students have access to evidence-based social-emotional learning strategies, positive behavioral interventions, and mental health screenings.

In all, 33 states allow medical cannabis access. According to pro-cannabis organization Americans for Safe Access, California, Colorado, Illinois, Maine, New Jersey, New Mexico, Pennsylvania, and Washington allow students to use legally recommended cannabis on campus, along with Oklahoma City, but not the entire state of Oklahoma.

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Portland, Maine Officials Uphold Cannabis License Residency Rules

5/20/2020

The Portland City Council has voted to keep the resident requirements for cannabis industry licenses intact for the city’s businesses, the Portland Press Herald reports. The decision comes a little more than a week after the state reached an agreement with Wellness Connection of Maine in their lawsuit challenging the residency rules that prevents regulators from enforcing the rules.

The council’s decision goes against the legal advice of municipal attorneys but supporters argue the city regulations will be easier to defend in court. Unlike the state’s all-or-nothing approach – a four-year Maine residency requirement – locals will get preferential treatment by the city only if it gets more than 20 applications and must break a tie among those with similar business experience, bank deposits, and employee wages, the report says.

Councilor Tae Chong warned that the decision could lead to a legal challenge against the city – which is struggling financially from the coronavirus impact – which could result in an injunction that prevents any cannabis industry licenses from being awarded.

After reaching an agreement with the state and dropping its lawsuit, Wellness Connection said it expected Portland to drop its residency requirements, too. Wellness Connection is 51 percent-owned by Mainers. Wellness Connection attorneys told the Press Herald that they could make the same argument against the city they did the state. The state Supreme Court has previously ruled against residency requirements for business licensing.

Anne Torregrossa, an attorney for the city, warned the city council that the decision to uphold the residency requirements is “a risk” but didn’t guarantee they would lose in court.

“Any time you are picking and choosing winners based on in-state versus out-of-state, or even in-city versus out-of-city, you run the risk of running up against the Constitution. This is a legal risk. The state scheme is slightly different but it chose not to take that risk.” – Torregrossa during her remarks at the city council meeting, via the Press Herald

Wellness Connection attorney Matt Warner told the council that there are “good policy reasons” not to have residency requirements but the “big reason” is that they are “unconstitutional.”

“The courts have repeatedly found dozens if not more times that laws like this which gives a preference to the citizens of one state over the citizens of another violates the Constitution,” he said during comments prior to the vote, according to the Press Herald.

With the ordinance adopted, Portland became the 40th Main municipality to approve adult-use cannabis operations. The reforms were approved by voters in 2016 but have been repeatedly delayed. First by former Gov. Paul LePage who vetoed regulation implementation bills, then by delays in the licensing process, then the coronavirus pandemic.

Regulators have not indicated when recreational cannabis sales in the state would commence.

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Maine Removes Cannabis Industry Residency Requirement

5/12/2020

The state of Maine and the Wellness Connection of Maine have reached a legal agreement that will prevent the Office of Marijuana Policy from enforcing the four-year residency requirement for cannabis industry license holders, the Portland Press Herald reports.

The Wellness Connection and Wellness and Pain Management Connection of Delaware, subsidiaries of High Street Capital Partners of Delaware, filed the lawsuit against the state last month arguing that the residency requirement violates the commerce clause of the U.S. Constitution which forbids restrictive and discriminatory commercial regulations between the states.

The decision will allow out-of-state investors into the state’s budding – but much delayed – recreational cannabis industry. Maine’s current law requires every officer, director, and manager of an adult-use cannabis business, and a majority of its ownership, to live and file taxes in Maine for at least four years. That mandate would have sunset in June 2021, but it would have given locals an advantage at the outset of the new market.

Wellness attorney Matt Warner told the Press Herald that access to capital is not just crucial for Wellness “but for the broader industry, too.” Wellness is 51 percent-owned by Maine residents. The company is also likely to ask the Portland City Council to strike its residency requirements, the report says.

“The residency requirement was the single biggest impediment to getting the industry off the ground quickly and efficiently.” – Warner to the Press Herald

OMP Director Erik Gundersen said the agency took the action on the advice of the Attorney General’s Office, which determined that the state was unlikely to beat the Wellness suit in court as it has struck down residency requirements in the past. Gunderson told the Press Herald that the office will introduce legislation to remove the preference and change its underlying rules.

Mark Barnett, founder of the Maine Craft Cannabis Association, said the decision leaves voters “with almost nothing” they voted for in 2016. He called Wellness an “out-of-state bully that sued the state when it didn’t get what it wanted.”

“Mainers did not want corporate marijuana, but that is exactly what we’ll be getting now,” Barnett said in the interview with the Press Herald. “It’s going to be a race to the bottom.”

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Maine Delays Adult-Use Cannabis Sales Amid Coronavirus

4/13/2020

Maine officials are delaying the rollout of recreational cannabis sales citing the coronavirus pandemic. In a letter to stakeholders, Office of Marijuana Policy Director Eric Gundersen called a spring industry launch “unrealistic.”

In the letter, Gundersen said that localities preparing for authorization to opt-in to adult-use sales have to postpone their actions amid the outbreak and that there are currently “sheer unknowns” such as when social distancing efforts will be scaled back.

“We are simply unable to provide any concrete timelines in these uncertain times. We cannot tell you with any level of certainty when towns will be able to take action to ensure there will be adequate testing to meet the needs of program, and we certainly cannot set a definitive retail sales launch date amidst a public health pandemic.” – Gundersen in the letter

Gundersen said that despite the pandemic, the agency is “continuing to operate at full capacity to be ready” for when the industry will be rolled out. He said that the OMP, along with Metrc, have “completed user acceptance testing, deployment certification, and have moved Maine’s track and trace system into a live production environment.” Additionally, the agency is still accepting industry applications.

Last month, officials announced they were delaying the start of recreational cannabis sales in the state until June – three months later than expected. It’s been four years and counting since Maine voters approved adult-use sales.

“If you had asked me a month ago if anything could have stopped our progress, I would have balked at the suggestion,” Gundersen wrote in the letter.

He did not offer a new timeline for the launch of the market.

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Maine Implements Metrc for Cannabis Seed to Sale Tracking

4/13/2020

Main’s Office of Marijuana Policy (OPM) announced in early February they awarded a new contract to Metrc; the agency had just cut ties with BioTrack THC after an eight-month contract. The $540,000 contract is for six years and will use RFID chips to track cannabis plants and products throughout both Maine’s medical and adult-use markets.

“We are excited to partner with Metrc,” said Maine’s Director of OPM Erik Gundersen in a press release. “Metrc is an industry leader, and their team is committed to delivering a product that will allow us to proceed with the launch of our adult use program later this spring.”

According to a Metrc press release, scheduled training “roadshows” were adapted statewide throughout March to follow new social distancing guidelines. Despite numerous challenges, the system was delivered in sixty days.

“We appreciate Metrc’s ability to deliver a completed track-and-trace solution within one of the tightest timeframes imaginable. Thanks to the dedication and hard work of the Office of Marijuana Policy and Metrc teams, this important milestone was realized as scheduled at the end of March. We look forward to a long, productive relationship and utilizing Metrc to help ensure the success of the programs we regulate.” — Gundersen, in a statement

Additional training will be provided to licensees prior to Metrc issuing user credentials. The RFID chips cost $0.45 and $0.25 each, while licensees will pay a $40 monthly fee to access the statewide tracking system.

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Maine Sued Over Cannabis Business Residency Requirement

3/24/2020

Maine cannabis company Wellness Connection is suing regulators over the residency requirement included in the adult-use legalization law, contending the rule is preventing them from expanding into the recreational market, the Bangor Daily News reports.

The company argues the requirement violates the commerce clause of the U.S. Constitution which forbids restrictive, discriminatory commercial regulations between the states.

The lawsuit seeks a preliminary injunction against the Maine Department of Administrative and Financial Services, which includes the Office of Marijuana Policy, from enforcing the residency requirement in the law. The law requires Maine cannabis companies to be majority-owned by in-state individuals or businesses.

The lawsuit was filed by Wellness Connection and Wellness and Pain Management Connection of Delaware, subsidiaries of High Street Capital Partners of Delaware which owns 49 percent of Maine Wellness Connection.

Wellness Connection board member Ron MacDonald said the residency requirement hampers the company’s ability to raise money.

“The natural consequence of Wellness Connection being undercapitalized at the launch of the adult-use market is that we will not be able to capitalize on the opportunities that will only be available in this new market in the same way we could if we were fully capitalized. Wellness Connection’s return on investment will certainly be lower, as a result, when the market launches.” – MacDonald to the Daily News

The lawsuit argues that there is legal precedent for their argument in a 2019 Tennessee case in which the U.S. Supreme Court ruled against that state’s two-year residency requirement for anyone seeking an initial license to operate a liquor store. Maine’s law requires a four-year residency for recreational cannabis business operators.

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Maine Committee Approves New Rules for Cannabis Caregivers

3/13/2020

Maine’s legislative Health and Human Services Committee has approved a cannabis caregiver regulation bill that would require potency testing and labeling but does not include provisions backed by the state Office of Marijuana Policy’s that included a ban on small extraction labs, federal background check requirements, and a limit on plant sizes, the Portland Press Herald reports.

Dawson Julia, a medical dispensary operator, said the testing requirement would drive up prices for small-scale caregivers, many of which sell less than $500 worth of cannabis a week. Under the current regime, plants grown by caregivers only need to be tested when they make an advertising claim, such as THC amounts or being pesticide-free.

“This is standard procedure from the corporate scum that continually use our government as a weapon to destroy the small competition. Maine will become just another feeding ground for the blood-sucking vampires of corporate cannabis.” – Julia to the Press Herald

The measure also includes a proposed fine schedule for caregivers who willfully flout regulations, but they did cut the fines in half from what they were in the original version of the bill.

Maine has about 2,600 medical cannabis caregivers who sold 76.5 percent – or about $85.3 million – of all cannabis sold in the state last year. The reform bill still needs approval from the Legislature.

Maine voters approved cannabis legalization in 2016 but regulations had been vetoed twice by then-Gov. Paul LePage (R) until it was overridden by the legislature. In October, officials anticipated recreational sales would begin this month but last week pushed that prediction to June.

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Cannabis Market Launch Delayed In Maine Until June

3/05/2020

Maine officials now predict the state’s first adult-use cannabis operator will open for business in June, three months later than originally expected, the Portland Press Herald reports.

Erik Gundersen, director of the Office of Marijuana Policy, said Maine is “very close” to wrapping up the licensing process after receiving 197 applications, 80 of which were deemed sufficiently complete. Once an applicant is approved, however, they still will need to secure local authorization before being fully licensed. Additionally, the state also still needs to approve at least one official testing laboratory.

State officials have decided to wait until there is enough infrastructure to support the industry during its early days before the official launch, hence the multi-month delay.

“(That) will allow product to go through the mandatory testing regime, go through the manufacturing process and allow retail stores to fully stock their shelves with a wide array of products. Hopefully, (we’ll) get enough products into the system to withstand the first day, the first weekend, the first week of demand so we don’t have a shortage like we’ve seen in other states.” — Gundersen, via the Press Herald

The delays have prompted major adjustments to the state’s expected amount of cannabis tax revenue in fiscal year 2020, which ends in June.

Maine voters passed an adult-use cannabis legalization initiative in 2016. Meanwhile, neighboring Massachusetts — which voted to legalize during the same election — launched its own adult-use marketplace in 2018.

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Maine Considering Cannabis Crimes Unit for State DEA

2/27/2020

Officials in Maine are planning a new division of the state Drug Enforcement Agency devoted solely to cannabis crimes, the Portland Press Herald reports. The four-person unit would be funded by $649,000 from cannabis industry-derived taxes.

Michael Sauschuck, commissioner of the Maine Department of Public Safety, said the unit would focus on illegal cultivators, processors, retailers, and sales to children that happen outside of the legal market. A civil compliance unit would focus on regulatory enforcement.

“We legalized a whole bracket of drugs and the vast majority of people are going to absolutely comply with that, but there will be those that push that limit. As other states have seen, there is absolutely a time and place for enforcement.” – Sauschuck, in testimony to lawmakers on Monday, via the Press Herald.

Sauschuck noted that the illicit market “doesn’t just go away overnight” and that 99 out of 100 licensed operators were “doing things the right way.” He said that currently cannabis crimes in the state are a “complete bottom-of-the-rung priority.”

Mark Barnett, a Portland coffee shop owner who is applying for a recreational cannabis license and is currently a medical cannabis caregiver, called the proposal “a move in the wrong direction and counter to the very idea of legalization.”

“We do not want to see one additional person incarcerated for marijuana,” he said during his remarks to lawmakers.

Rep. Kent Ackley, an independent who supports the creation of the unit said his “hope would be” that the state wouldn’t have to jail people “to convince the gray market to participate in the regulated marketplace.”

Recreational cannabis was legalized in Maine on Jan. 1, 2017; however, the rollout of the industry was stalled due to opposition from then-Gov. Paul LePage (R). LePage’s successor, Democrat Janet Mills, signed the adult-use cannabis regulation bill last summer.

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Maine Adopts Massachusetts’ Cannabis Warning Labels

10/28/2019

Cannabis regulators in Maine have adopted the warning symbols for cannabis products from Massachusetts, the State House News Service reports. The adoption could be a preview of how New England states unify some cannabis regulations in lieu of federal legalization. Maine’s rules require all products to have cannabis warning labels that read “contains THC” and “Not Safe for Kids.”

Erik Gundersen, director of the Maine Office of Marijuana Policy, said using the “same universal symbol will ensure that customers can clearly recognize products that contain THC whether in Massachusetts or Maine.”

Three of the six New England states – Maine, Massachusetts, and Vermont – have legalized cannabis for adult use, although Vermont has not yet legalized sales or a regulated industry. Legalization legislation has been introduced in New Hampshire, Connecticut, and Rhode Island but has not yet been voted on by lawmakers.

Maine officials said regulators “identified the CCC’s symbol as a potential opportunity for collaboration and were pleased with how warmly the suggestion of utilizing the same symbol was received by their counterparts in Massachusetts.”

Earlier this month, governors from New York, Connecticut, New Jersey, and Pennsylvania met to discuss regional cannabis legalization policy. In a statement on the summit, Connecticut Gov. Ned Lamont (D) said that eastern states “not only share borders” but “economic interests” and that “when states work together collaboratively, carefully and thoughtfully [they] can create better policies.”

According to the State House News report, Maine officials expect to begin accepting cannabusiness licenses by the end of the year.

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