Starting next year, Massachusetts will be the first U.S. state with a legal cannabis program to add lessons about cannabis impairment to its driver’s education programs, WCVB5 reports.
The American Automobile Association (AAA) is providing the new curriculum, which will be named “Shifting Gears: the Blunt Truth about Marijuana and Driving.” Officials with the Massachusetts Department of Transportation (MDOT) said some 50,000 young drivers are expected to be taught the program each year across the state’s approximately 700 driving schools.
“The current driver education module addressing impaired driving will be updated to include research-based information on cannabis, explaining how tetrahydrocannabinol (THC), the active chemical in marijuana, affects cognition, vision, reaction time, and perception of time and distance.” — MDOT official statement, via WCVB5
Massachusetts state law requires first-time drivers who are younger than 18 to finish at least 30 hours of driver’s ed classes before they can qualify for an unrestricted license.
MDOT officials said the Registry of Motor Vehicles would join AAA and the Massachusetts Cannabis Control Commission for an event on Friday touting the new program.
“This is the first generation of driver education students to be licensed since cannabis became legal in Massachusetts, and AAA research shows that impaired driving crashes may increase and continue to injure and kill motorists and their passengers,” MDOT officials said in the report.
The driver’s ed changes come six years after Massachusetts voters approved cannabis legalization in 2016 and three years after the 2019 launch of regulated cannabis sales.
A Trulieve facility in Massachusetts where an employee died in January after allegedly inhaling “cannabis dust” was under investigation prior to the death, Marijuana Business Daily reports. The Massachusetts Cannabis Control Commission (CCC) began investigating the facility owned by Florida-based Trulieve in the fall of 2021 after employee complaints.
However, CCC Chair Shannon O’Brien and Commissioner Bruce Stebbins say they were not aware of the death of 27-year-old Lorna McMurrey until hearing it on the Young Jurks podcast, the report says.
Trulieve said they reported the death to the CCC three days after the incident, on January 10. A spokesperson for the CCC said the agency staff did not tell the five commissioners about the death at the time, explaining it is a “customary” practice designed to keep investigations independent until commissioners vote on accepting a probe’s conclusions or to issue sanctions, the report says.
Originally, The Occupational Health and Safety Administration (OSHA) found the employee died of “occupational asthma due to exposure to ground cannabis” while grinding and filling pre-rolls. However, the OSHA report no longer cites a cause of death and the agency says the investigation remains open. It has declined to comment on the change. OSHA issued Trulieve a $35,000 fine, which they have appealed.
McMurrey’s stepfather said she had asked him to bring her respirators from his job as a mechanic as the “air (at her job) was full of dust.” A former supervisor at the site said paper masks were provided to employees, but many were afraid to speak up about working conditions, the report says. Personal protection equipment was available onsite
“They (OSHA) tested the air quality throughout the facility and the samples were all well below acceptable ranges,” Trulieve said in an October 3 statement to Marijuana Business Daily.
Hampden County District Attorney said the case is not being criminally investigated.
The federal Occupational Safety and Health Administration (OSHA) says a worker at a Trulieve Holdings LLC facility in Holyoke, Massachusetts, Lorna McMurrey, died from inhaling “ground cannabis dust,” commonly referred to as kief.
McMurrey was 27 years old.
“Filling pre-rolls She (sic) said she couldn’t breathe. Not being able to breathe Marijuana kief (dust) At 11:00 p.m. on January 7, 2022, an employee was grinding cannabis flowers, and packaging ground cannabis in pre-rolls. The employee could not breathe and was killed, due to the hazards of ground cannabis dust.” — OSHA in a report
The facility is a non-union shop. Few other details are included in the report. In June, OSHA issued Trulieve three fines totaling $35,219 for alleged violations related to the death. Trulieve has contested those violations, according to OSHA records. The penalties are categorized as “serious” by the agency.
McMurrey’s death was first reported by The Young Jurks podcast.
Her obituary notes that she had “recently started working at Trulieve’s Grow Facility in Holyoke” but does not offer any further details.
There is no exposure limit in place per OSHA for exposure to “ground cannabis dust.”
Holyoke Mayor Joshua Garcia told The Shoestring that it was the first time he had heard about the death at Trulieve’s facility. He said he was “very shocked” to hear the news but provided no further comment.
Holyoke has become a destination for cannabis companies as the city’s municipal dam and canal system can provide low electric rates.
Trulieve has been cited at least twice before by OSHA for workplace accidents. In 2019, the agency cited the company for violating respiratory protection and hazard communication regulations at its grow facility in Quincy, Florida. In March, the company settled an OSHA case in Reading, Pennsylvania, where it was cited for violating a regulation requiring companies to report an employee’s in-patient hospitalization, amputation, or loss of an eye.
The “Gentlemen Smugglers” were a group of East Coast drug smugglers who from 1971 to 1986 brought some 250 tons of cannabis to American shores. They were eventually caught during Operation Jackpot, the first multi-pronged federal law enforcement investigation which kickstarted then-President Reagan’s long and disastrous War on Drugs.
Today, Barry “Flash” Foy — a smuggler-turned-entrepreneur who served 11 years in prison under federal drug kingpin charges — has joined the industry once again, this time launching a legal Massachusetts cannabis brand under the same name.
Legendary outlaws
The original Gentlemen Smugglers were known for being better educated than most smugglers and, most notably, nonviolent. They were given the name by a local newspaper writer who was reporting on investigators’ efforts to catch the outlaws, and the name stuck.
“I’m thankful to her for doing that,” Foy said in a recent interview covering his journey to the legal cannabis space.
“The name made sense for us because we were in the cannabis business. We weren’t in the cocaine business, we weren’t in any other kind of drug business, we were just in the cannabis business — and it’s not a business that requires any kind of craziness.” — Barry Foy, in an interview
Barry Foy (left) and the original Gentlemen Smugglers, pictured at the height of their success.
The group’s smuggling escapades, which included international cat-and-mouse games with then-U.S. attorney Henry McMaster, who is now the governor of South Carolina, were thought to have generated more than a half-billion dollars on the black market. Their story was closely documented in Jason Ryan’s 2011 bestseller Jackpot: High Times, High Seas, and the Sting That Launched the War On Drugs.
The smuggler’s return
Now, nearly 40 years after the smuggling group’s downfall, Gentlemen Smugglers is officially launching in Massachusetts this month with products manufactured in partnership with Root & Bloom, a vertically integrated cannabis operator handpicked by the GS team, with the first batch of products featuring cannabis grown by Lazy River Products. The brand will initially carry two types of products: a “High Tide” product featuring Applejack (a sativa strain) and a “Low Tide” product featuring Platinum OG Kush (an indica strain). The company’s earliest offerings, which are set to hit store shelves in the coming weeks, will include both pre-rolls and raw flower.
“I think the cannabis business will have some sputtering and some stops and starts but I think overall, it’s the people’s wish,” Foy said. “Now that the people are on board and attitudes have changed, it’s going to be a lot of fun to be on this side of [the industry].”
While Massachusetts does have cannabis social equity opportunities for “individuals most impacted by the War on Drugs,” these did not factor into Gentlemen Smugglers’ decision to launch in the state, Foy said. Rather, the team preferred the state’s business-friendly regulations and the fact that Massachusetts, with its rugged and widely varied coastline, has been utilized by smugglers since the days of alcohol prohibition.
Foy also said he wants to use the brand’s platform and success to support other cannabis prisoners, and that portions of the company’s proceeds are planned to help the Last Prisoner Project and potentially other prisoner advocacy groups. “I spent a long time behind bars for the plant and I don’t think anybody should be there, and this is a way for me to help out the brothers and sisters who still are,” he said.
Worcester Polytechnic Institute (WPI) is partnering with Green Flower to offer four cannabis certifications, NBC News Boston reports. It is the first partnership between the cannabis education company and a Massachusetts college.
Green Flower CEO Max Simon told NBC News Boston that the company is excited about the partnership because Massachusetts “is really one of the best in the country in terms of economic growth, in terms of career opportunity and in terms of just acceptance within the space.”
“The Massachusetts market is growing so fast from a cannabis perspective and that really needs well-trained people to be able to supply the industry with high-quality talent.” — Simon to NBC News Boston
The four programs offered through WPI are cannabis healthcare and medicine; cannabis law and policy; the business of cannabis; and cannabis agriculture and horticulture.
Anita Mattson, WPI’s head of Chemistry and Biochemistry, told NBC News Boston that the college would not be dealing with THC-rich cannabis on campus – which would likely put the school’s federal funding in jeopardy – rather, students would work with hemp plants, which are federally legal.
“But all of the skills and techniques people will be learning on the hemp is exactly the same you would need for any aspect of the cannabis industry,” she said in the report.
The classes cost $2,950 each and run for six months.
According to the Green Flower website, the company now partners with 18 colleges and universities throughout the U.S.
Massachusetts Gov. Charlie Baker (R) on Thursday signed the bill package of cannabis industry reforms, which includes social-equity provisions, tax reforms for the industry, and a reworking of the state’s host community agreements, Axios reports. The measure also includes a re-tooling of how the state expunges previous cannabis convictions and includes a pilot program for cannabis cafés.
The new law alters the state tax code so cannabis businesses can write off business expenses like non-cannabis firms. Previously, the state did not allow cannabis businesses to take normal business deductions.
Under the law, communities can still impose a limited-time “impact fee” on cannabis businesses that seek to open shop in their municipality, but that fee is now limited to 3% of the business’s total sales. The so-called community host agreements came under fire following the arrest, and ultimate conviction, of former Fall River Mayor Jasiel Correia who extorted cannabis businesses under the guise of the host agreement.
Baker did veto part of the bill that would have led to a study on pediatric medical cannabis consumption in schools.
“I support many of the provisions this bill adopts to improve regulation of the cannabis industry, and I support the bill’s efforts to expand opportunities for social equity businesses. I have serious concerns, however, about [the study]. The language of the section is highly prescriptive – making it clear that the agencies charged with producing the study must identify ways to make medical marijuana widely available within schools, rather than considering whether such an allowance is advisable.” — Baker, in a signing statement, via the Boston Globe
Lawmakers had approved the omnibus cannabis bill unanimously in the Senate and 153-2 in the House. Massachusetts lawmakers could decide to try and override Baker’s veto of the section providing for the study, but the state’s formal session has ended.
Massachusetts lawmakers today passed a bill package that includes a crackdown on local fees charged to cannabis businesses, shifting 15% of cannabis excise taxes to social equity applicants and businesses, re-tooling the expungement process for old cannabis convictions, and greenlighting a pilot program for cannabis cafés, the Boston Globe reports. The bill moves next to Gov. Charlie Baker (R), who has indicated he is receptive to the bill’s provisions.
State Sen. Sonia Chang-Díaz (D), a co-sponsor of the cannabis measure, said the measure “will rebalance the playing field” in the state’s cannabis industry.
“…Where so far wealthy corporations have been able buy their way through the licensing process and too many local, small business owners and Black and brown entrepreneurs have been locked out.” — Chang-Díaz, in a statement, via the Globe
Shanel Lindsay, a cannabis attorney and co-founder of the advocacy group Equitable Opportunities Now, described the bill as historic.
“Legislators tonight made history with this vital — and overdue — grant and loan fund,” she told the Globe. “This bill is an important step forward in undoing the harms of prohibition and over-policing and will provide an important path for families of color to create jobs in their community and generate generational wealth.”
The bill’s crackdown on so-called local “impact” fees comes more than a year after the conviction of former Fall River Mayor Jasiel Correia, who was found guilty of extorting cannabis businesses and defrauding investors of more than $200,000. Correia extorted cannabis companies in exchange for non-opposition letters which are required under state law and often require an “impact” fee paid by the company seeking to open a business.
A study by Northeastern University study published by the Massachusetts Cannabis Business Association in June found Massachusetts municipalities collected more than $53 million in “impact” fees from cannabis companies since the launch of adult-use sales in 2018.
Of the 88 municipalities that said they had collected fees as part of their local agreements with cannabis companies, just 47 reported the amount in response to a public records request by the researchers, which suggests the $53.3 million total is less than the actual amount collected.
Fall River collected the most in fees from cannabis operators, $5.34 million, but did not tell researchers how that money was spent.
In an interview last month on WGBH, Baker called the measure “important” and said he hoped it would make it to his desk.
Massachusetts municipalities have collected more than $53 million in “impact” fees from cannabis companies since the launch of adult-use sales in 2018, according to a Northeaster University study published by the Massachusetts Cannabis Business Association outlined in a Boston Globe report. The survey of 88 communities comes as lawmakers are considering a bill that would essentially force towns and cities to justify any fees on cannabis businesses that exceed those levied on other businesses.
State Senator Sonia Chang-Díaz (D), a sponsor of the legislation, told the Globe that the report further shows how arbitrary and unequal the process has become.”
“I look forward to the day soon when our cannabis marketplace lives up to our values and aspirations.” — Chang-Díaz to the Globe
The state’s legalization law allows communities to impose a 3% tax on cannabis sales, plus impact fees of up to 3% of a company’s annual revenue, providing the fee is “reasonably related” to costs imposed by the facility; however, due to lax oversight, many cities and towns have charged businesses the maximum amount without citing specific impacts, the report says. Local officials argue that the fees were negotiated in good faith and have helped mitigate regulatory costs and other issues such as increased traffic.
Of the 88 municipalities that said they had collected fees as part of their local agreements with cannabis companies, just 47 reported the amount in response to a public records request by the researchers, which suggests the $53.3 million total is less than the actual amount collected.
Fall River collected the most in fees from cannabis operators, $5.34 million, but did not tell researchers how that money was spent. Former Fall River Mayor Jasiel Correia was sentenced in September to six years in prison for extorting cannabis companies during his time in office.
Devon Fields, administrative services director for Brookline, said the $4.9 million it collected in fees was “justified” due to increased administrative costs, issues in the neighborhoods, and an increase in town meetings. He told the Globe it “would be a shame” if the money “were to come to a halt.”
“We incurred a ton of neighborhood impacts,” he told the Globe, “including disorderly conduct as well as trash and litter and parking and traffic enforcement issues.”
Only 42 municipalities provided researchers with information on how they were spending the revenue, with half indicating they put the money in their general funds, which allows it to be spent on any number of local initiatives and budget items, regardless of whether they were related to the impact of the cannabis industry. The town of Maynard spent some of its $137,000 in fees on four park benches, while the town of Wareham used the majority of the $1.7 million it collected toward new police headquarter, the researchers found.
Jeffrey Moyer, a Northeastern public policy professor who oversaw the study, said the research “shows that while some municipalities are following the spirit of the law and striving for real transparency, most are not.”
Actor Sacha Baron Cohen on Tuesday dropped his lawsuit against Solar Therapeutics, the Massachusetts cannabis company that used the image of his Borat character on a billboard without his permission, the Associated Press reports. The legal filing dropping the case did not mention settlement details.
The billboard advertising had featured the Borat character with two thumbs up and the words “It’s nice!” – one of the character’s catchphrases.
In the lawsuit, Baron Cohen’s attorney attested that the actor has “never has used cannabis in his life” and “never would participate in an advertising campaign for cannabis, for any amount of money.” The lawsuit sought $9 million in damages.
In the original complaint, Baron Cohen’s attorney argued that, with his ‘Ali G’ character, Baron-Cohen “has spent much of his career making a mockery of ‘stoner’ culture – a culture which the defendants’ Billboard overtly celebrates,” according to a Benzinga report.
The lawsuit noted that Baron Cohen has never allowed his characters or likeness to be used for advertising purposes other than TV or films involving them and that the three-time Oscar nominee had once turned down a $4 million offer to appear in a car commercial.
The billboard along a Massachusetts interstate highway was removed three days after Baron Cohen’s attorneys sent a cease-and-desist order to the dispensary.
Sarah Kim, the top deputy and attorney in the state Treasurer’s Office, has been named the new chair of the Massachusetts Cannabis Control Commission, the Boston Globe reports. Kim follows former chair Steve Hoffman who resigned late last month.
State Treasurer Deborah Goldberg appointed Kim on Monday as interim chair and the agency held its first meeting under her tenure on Thursday. Kim told the reporter she does not intend to seek the permanent position.
“[Goldberg] reached out to me knowing I had been part of the initial efforts way back when the ballot initiative was in process. She wanted to make sure [Hoffman’s resignation] didn’t cause any disruption.” – Kim to the Globe
In a statement, Goldberg said Kim was right for the job because of her “extensive leadership experience and knowledge about the standards, goals, and operations of the commission, as well as perspective on necessary steps as we progress in the implementation of good policies in Massachusetts.”
Under state law, the state treasurer is tasked with appointing a member of the commission who comes with corporate management, finance, or securities experience, and for designating its chair.
During the meeting, Kim abstained from voting on any substantive matters saying she did not have enough time to review the materials and that she is “still getting to know the agency and the issues it’s grappling with.”
Massachusetts Cannabis Control Commission Chairman Steve Hoffman resigned from his position last week, the Boston Globe reports. The move comes just months before his term was set to officially end in August. He was the last of the five original commissioners who kicked off the program in 2017.
The now ex-chair did not give a specific reason for his resignation but said in a statement to the Globe it was “a natural inflection point when the time is right for a transition in leadership.”
“Throughout the past four-and-a-half years, the work of the commission has been sometimes challenging, often exhausting, but always gratifying. The commission now consists of recently appointed members, and it is appropriate that they pursue their own vision and take on the next generation of challenges.” – Hoffman, in a statement, via the Globe
Hoffman added that he would continue to “root” for the program and encouraged the Legislature to take up reforms to set up a cannabis tax-driven social equity fund that would include forgivable and low-interest loans, which was approved by the Senate last month. The measure, which is awaiting approval in the Massachusetts House of Representatives, would permit towns and cities to vote on allowing on-site cannabis consumption and includes an amendment to set up a drugged driving commission to look into developing technology and reliable methods to test drivers for cannabis impairment.
The Massachusetts Senate last week unanimously approved a measure to create a social equity fund using cannabis taxes, the Lowell Sun reports. The measure, which still requires House approval, would include forgivable and no-interest loans.
The bill also includes provisions to allow municipalities to approve on-site consumption where cannabis is sold if authorized through a voter referendum or by an act of the City Council or Board of Selectman. The chamber rejected an amendment that would have required voters to approve any proposal to allow on-site consumption.
The Senate also unanimously approved an amendment to create a Special Commission on Drugged Driving, which would require research and development of technology and methods to reliably test individuals suspected of driving while under the influence of cannabis.
State Sen. Mike Moore (D) said that since Massachusetts legalized cannabis for adults, “there has been an uptick in incidents of driving under the influence of cannabis and this remains a significant public safety issue.”
“Drugged driving has long been an issue here in the commonwealth, however, the lack of a reliable test for individuals operating motor vehicles under the influence of marijuana has posed challenges to law enforcement. This amendment creates a commission to help ensure that we remain vigilant to advancements in technology and have updated policies for court proceedings to keep our roadways safe.” – Moore to the Sun
If the bill is approved by the House, the commission would be required to submit an annual report with its findings and recommendations for legislation by January 1, 2024.
The chamber rejected another amendment that would have created a state-funded Host Community Technical Assistance Fund to help municipalities with developing and negotiating host community agreements – which are required between cannabis businesses and the town or city they are seeking to open their business.
Excise taxes for adult-use cannabis in Massachusetts outpaced the state’s alcohol taxes for the first time through December, reaching $74.2 million compared to $51.3 million, according to Cannabis Control Commission (CCC) figures outlined by the Associated Press. It’s the first time cannabis tax revenues topped those of alcohol.
Massachusetts adult-use cannabis sales carry a 10.75% tax, along with a 6.25% state sales tax and local taxes of up to 3%. Last fiscal year, the state’s total cannabis tax revenues reached $208 million.
From 2018 through November 2021, Massachusetts retailers sold $2.3 billion worth of adult-use cannabis. CCC Chairman Steve Hoffman has described the sales figures as “pretty phenomenal.”
Since Massachusetts became the first New England state to allow adult-use cannabis operations, 179 stores have started operations, including 325 adult-use establishments which encompass indoor and outdoor cultivators, product manufacturers, microbusinesses, delivery businesses, and independent testing labs, according to the state data. The sector employs more than 17,000 people in the state.
In the first quarter of last year, cannabis tax revenues in Illinois surpassed those of alcohol, totaling $86 million compared to $72 million.
Adult-use cannabis remains popular among Bay Staters — a November University of Massachusetts-Amherst and WCVB poll found 61% of respondents had a favorable view of the reforms, with 13% holding somewhat or very negative views on the reforms.
The average price per ounce of cannabis in Massachusetts last month was $340.62 — the lowest it’s been since the start of adult-use sales in the state — excepting the first two months of the pandemic, the Worcester Business Journal reports. The price has consistently fallen since July when the average ounce price was $371, according to Cannabis Control Commission (CCC) data outlined by the Journal.
When adult-use sales first launched in Massachusetts in November 2018, the average cost per ounce was $390.81. The price reached its all-time high at $405 an ounce in February 2019, the report says. The lowest the price per ounce has ever been in Massachusetts was $299.08 in April 2020, and the price spiked the following month to $320.30.
Commission Chairman Steven Hoffman called the sales figures “pretty phenomenal.”
The state has 945 licensed cannabis businesses, including 176 open retailers, 62 operating cultivators, and 55 operational processors, according to CCC data. The adult-use sector employs more than 17,000 employees, while the medical cannabis industry employs about 8,800.
A recent the University of Massachusetts-Amherst and WCVB poll published in November found the reforms remain popular by Massachusetts residents, with 61% expressing a favorable view of legalization with 37% reporting a “very positive” view along with 24% who had a “somewhat positive” view.
According to a University of Massachusetts-Amherst and WCVB poll published Monday, 61% of Bay Staters had a favorable view of cannabis legalization five years after voters approved the reforms. The poll found 37% who had a “very positive” view of legalization along with 24% who had a “somewhat positive” view.
The poll found 25% of respondents held “neither positive nor negative” opinions of the reforms; while 6% held “somewhat negative” views and 7% held “very negative” views.
The poll included 773 respondents and has a margin of error of 4.3%.
Earlier this month, the Massachusetts Cannabis Commission announced that the state had sold $2.3 billion worth of cannabis in the three years since the first adult-use dispensaries opened on Nov. 20, 2018. Commission Chairman Steven Hoffman called the sales figures “pretty phenomenal.” The state’s adult-use cannabis sector employs more than 17,000 employees, while medical cannabis employs about 8,800, according to state figures.
Hoffman told MassLive that the UMass and MCVB poll “shows that legalization is reducing the stigma historically associated with cannabis,” which he said, “will only enable the commission to continue making headway on efforts to ensure full participation in this industry by disproportionately harmed communities.”
Since Massachusetts became the first New England state to allow adult-use cannabis operations, 179 stores have started operations, including 325 adult-use establishments which encompass indoor and outdoor cultivators, product manufacturers, microbusinesses, delivery businesses, and independent testing labs, according to the state data outlined by MassLive.
The Massachusetts Cannabis Commission (CCC) announced the state sold $2.3 billion worth of cannabis in the three years since the first adult-use dispensaries opened in 2018, the Boston Herald reports. Voters legalized adult-use cannabis in Massachusetts in 2016.
“That’s a pretty phenomenal number and you know, I think on top of the numbers, one of the things I’m proudest of is just how smooth the rollout has been and the growth of this industry. There’s certainly been some things that have happened along the way, but for the most part, it’s been an extraordinarily smooth rollout and I would compare it favorably to any other state that either preceded us or opened at the same time we did.” — CCC Chairman Steven Hoffman, via the Herald
Since 2017, the state has issued 945 cannabis licenses. According to the CCC, there are 379 (176 open) retailers, 285 (62 open) cultivators, and 218 (55 open) processors in Massachusetts. The CCC gave the green light to 14 independent labs, of which eight have been cleared to begin testing. The state’s adult-use cannabis sector employs more than 17,000 employees, while medical cannabis employs roughly half that, 8,800, according to the report.
Hoffman said that despite these impressive numbers, helping those people who have been disproportionately affected by the war on drugs remains a focus of the CCC, and more work still needs to be done.
“We all recognize we have lots more to do to meet our legislative mandates, to live up to our mission statement, to meet our commitment of making Massachusetts the role model for this industry for the entire country,” Hoffman said. “So we do have a lot of work to do.”
Massachusetts cannabis delivery businesses say they are delivering more cannabis than ever, but a state regulation is preventing them from earning a profit, according to a MassLive report. The state Cannabis Control Commission (CCC) requires two drivers in each delivery vehicle and each driver must wear a body camera and the vehicle must have a GPS.
“My hope is that there are some changes that are made that make the industry a bit more balanced, a bit more equitable,” Christopher Fevry, CEO of cannabis delivery firm Your Green Package, told MassLive. “There needs to be a balance between regulations and actual business operations and things that are happening on the ground.”
Adult-use cannabis home delivery began in Massachusetts this year as part of the state’s social equity program. There are two license types that are exclusively available to social equity applicants for three years. However, the two-driver rule is making it difficult for these businesses to succeed, delivery service owners said in the report.
“I’m proud of the regulations that we’ve established thus far because they aim to both increase access and equity in the industry while also upholding the Commission’s commitment to public safety. I want to ensure that this part of the industry thrives, especially considering the three-year exclusivity period given to equity applicants for this license type,” said Ava Calendar Concepcion, who holds the public safety seat on the CCC, in a written statement. She said the commission is open to hearing “about what [delivery firms] feel is working or where challenges may exist.”
Addressing safety concerns, Fevry said his firm has not had any issues.
“When anything’s being done that’s new, there’s a fear of the unknown, but I think through our operations, through what we’ve done, we’ve proven that this can be done safely,” he said in the report. “There’s also a multitude of other security provisions like the body cameras, the GPS tracking of the cars, the cameras watching the drivers, watching the vehicles.”
Fevry and other delivery drivers say they have spoken with commissioners who have been open to hearing about the issues.
Connecticut Attorney General William Tong has sent a letter to seven Massachusetts cannabis companies asking them to remove their billboards from along Connecticut highways, saying that the ads are illegal in the state under its adult-use cannabis law passed earlier this year, Western Mass News reports. Under Connecticut’s legalization law, cannabis advertising is prohibited unless 90% of the audience is 21-or-older.
The Attorney General’s Office clarified to Western Mass News that the letter is a request not a demand.
Erik Williams, chief operating officer of Canna Provisions, which is based in Massachusetts and uses billboard advertising on the highway, said that the company has no intention of removing the ads, despite the letter from Tong.
“If we capitulated to every prohibitionist’s whim or request, I would say that we would not have adult use cannabis in Massachusetts and certainly it wouldn’t be coming in Connecticut. … I believe that this is too far reaching of an insinuation that they have made against our company and other advertisers, against marketing firms, and against the other folks who have also gotten those letters.” – Williams to Western Mass News
In the letter, Tong said the billboards encourage customers to cross state lines with cannabis products, which is a federal crime, but Williams said that was not the case.
“We are continuing to talk to them and I told him that this is an important thing for us to look for,” Williams said in the report, “and we also want to really see that the Connecticut market actually thrives as well.”
Canna Provisions has no intention to take the billboard down, Williams said.
The report does not indicate whether the other six Massachusetts companies with billboards in Connecticut plan to honor the attorney general’s request.
The owner of a Massachusetts cannabis delivery company on Tuesday was sentenced in federal court to four years in prison for tax evasion, money laundering, and cannabis distribution and possession. Deana Martin owned and managed Northern Herb and pleaded guilty to the charges in May.
Northern Herb purported to provide medical cannabis to registered patients, who placed their orders online, but the company didn’t ask those it delivered to for proof that they were registered with the Massachusetts medical cannabis program.
Martin’s co-defendant, Tatiana Fridkes, was sentenced in September to time served after she pleaded guilty to conspiracy to distribute cannabis. Fridkes was also sentenced to two years of supervised release and ordered to pay restitution of $82,000. Martin was also ordered to pay $528,146 in restitution and three years of supervised release once freed from prison.
According to a press release from the U.S. Attorney’s Office in Massachusetts, from May 2016 through July 2018, Northern Herb’s revenue exceeded $14 million, and the company did not withhold or pay taxes on its millions of dollars in cannabis sales and did not pay taxes on its profits. Much of the cash collected by Northern Herb from customers was used to pay its suppliers and its workers and in paying cash wages, Northern Herb did not withhold, remit, or pay any payroll or income taxes, including not reporting worker wages to the Internal Revenue Service (IRS), nor issuing W-2s or 1099s to its workers. The company employed at least 25 people.
Federal Authorities also said Northern Herb delivered cannabis to unattended locations (such as a front door or hallway) where unknown third parties could have accessed it.
Chicago, Illinois-based Cresco Labs last week completed its $90 million takeover of Massachusetts’ Cultivate. Charlie Bachtell, CEO and co-founder of Cresco said the deal “constitutes another important step” for the company as it deepens its “presence in large, attractive states like Massachusetts.”
“Expanding operations in the most strategic U.S. cannabis markets is at the heart of our growth strategy and we’re thrilled to have the opportunity to show what can be achieved through a maximized footprint in Massachusetts. We have been thoroughly impressed with the Cultivate team and the quality of their operations. We look forward to a productive and efficient integration process to carry their historical strong momentum into the fourth quarter and beyond.”—Bachtell in a press release
The acquisition gives Cresco approximately 42,000 square feet of flowering canopy, bringing its combined canopy in-state to about 64,000 square feet, the company said. Cresco also adds three operational dispensaries in Leicester, Framingham, and Worcester, bringing its combined retail storefronts in the state to four. Concurrent with closing, the company’s Fall River retail location has transitioned to medical sales only.
The deal was first announced in March. In addition to the $90 million price tag, the transaction includes an earnout up to $68 million. At that time, Bachtell said the industry was “at the precipice of a transformational moment” and that, once the deal was completed, Cresco would “immediately vault to a top 3 share position in Massachusetts,” adding that it is “the third $1B-plus cannabis market” where Cresco has achieved such a status.
Cannabis has always been about community. Some people assume that consuming cannabis makes one a loner, but the foundation of a smoke “sesh” is communal: a gathering of cannabis lovers, consuming lady cannabis together. In fact, many great bonds are made from cannabis smoke sessions including business talks and industry collaboration. For a magnificent example, see three Massachusetts cannabis business owners who became friends because of their shared admiration for cannabis and each other.
Meet Seun Adedeji, Ulysses Youngblood, and Reginald Stanfield
The journey into cannabis entrepreneurship isn’t easy, especially for the BIPOC community; however, Seun Adedeji, Ulysses Youngblood, and Reginald Stanfield all launched their cannabis businesses despite the industry’s murky waters. Seun and Reginald relocated and lived on-site to make their businesses launch. Ulysses leaned on his network to launch his business. Their journey, their struggle, their hustle is one that any aspiring cannabis entrepreneur can learn from.
NBC News recently covered black entrepreneurs struggling to enter the cannabis industry, reporting that “the numbers are disturbing. Less than a fifth of the people involved at an ownership or stake-holder level were people of color.”
And so, when black people in cannabis are accomplishing what seems to be the impossible, noise must be made and we must give these business owners recognition, especially when their mission in the cannabis industry is centered around community, passion for the plant, and passion for the people.
Seun Adedeji is the Founder and CEO of Elev8, a black-owned multi-state cannabis dispensary with locations in Oregon and Massachusetts. Seun is the youngest black man in America to own a cannabis dispensary. He says the mission at Elev8 is, “to elevate our community.”
Ulysses Youngblood is the Co-Founder and President of Major Bloom, the first black-owned manufacturing operator coupled with a retail and delivery license, located in Worcester, Massachusetts. When it comes to their company mission, Ulysses says, “innovation is at the core of Major Bloom.”
Reginald Stanfield is the CEO and Head Horticulturist of JustinCredible Cultivation, the first black-owned and licensed cultivation on the East Coast, located in Cummington, Massachusetts. Reginald says that the mission at JustinCredible Cultivation is, “to be a positive example to bigger commercial cultivators; keeping the integrity of the cultivation process while scaling.”
A fateful meeting
In a recent trip to Massachusetts, sponsored by JustinCredible Cultivation, I had the pleasure of visiting JustinCredible Cultivation in Cummington, Elev8 Cannabis Dispensary in Athol, and Major Bloom Cannabis Dispensary in Worcester; and the pleasure of spending time and space with cannabis business owners Seun, Ulysses, and Reginald. I was and still am so intrigued by their individual journeys, their businesses, and their friendship. I was intrigued by their individual journeys, their businesses, their friendship, and the way they collaborate and show up for each other, so I asked about how they first met.
Reginald: “I met Ulysses Youngblood through a newly formed organization that focuses on developing black- and brown-owned businesses in the cannabis space, The Block. Someone gave me Seun’s contact information. We had a great conversation then later met face to face, from there a brotherhood bond developed. Now he’s one of the only people I allow to call me at 9 am (LOL).”
Seun: “Reginald reached out and I’m glad I picked up. Our conversation was not forced and I could hear his sincerity and hustle; nothing was given to him and I connected with that right away. I heard of Ulysses in 2018 while lobbying for a license in the state of Massachusetts. His business partner was one of my attorneys/advisors (Lori, aka Big Mama). I finally met Young at the Block meeting, respect was mutual.”
Cannabis entrepreneurs Reginald Stanfield, Ulysses Youngblood, and Seun Adedeji pose together for a group photo.
Embracing unity and collaboration
A beautiful “no man left behind” sentiment has developed between these three cannabis business owners:
Ulysses: “Our relationships became solid after a local trade association attempted to repel equity provisions, by suing the state over the exclusive delivery license period. We all agreed not to join that trade association when they wanted to do damage control. Additionally, because we are not cultivators, our job is to narrate and share the story and power of creating products with the first black cultivator on the East Coast.”
Seun: “JustinCredible played a role in Elev8’s grand opening. There was a shortage of flower in the state of Massachusetts when we opened and JustinCredible came out, showed love, and made sure we were the first dispensary they sold their flower to. I also had the honor of going out and supporting Major Bloom for their grand opening which was amazing!”
15 tips for aspiring ganjapreneurs
Seun, Ulysses, and Reginald speak from a place of experience and sacrifice—there aren’t many cannabis business owners or CEOs that can talk about the building and launching of a cannabis brand from the same place as this trio. Seun made his dispensary his residence to save money and gave everything he could to the launch of Elev8. Reginald shared an RV with three other people to live onsite while working to build JustinCredible with the rest of the team.
The following 15 business tips come from their blood, sweat, tears, and passion:
Making a decision is better than procrastinating.
Be optimistic and it’s ok to have a subtle naiveté.
Get around those who inspire.
Understand your company values and hire people that meet them.
Motivate your team.
Find your strength and surround yourself with people that can complement your weaknesses.
Even with a small-scale cultivation, you need help to stay compliant.
Test for terpenes.
Be willing to become the COE (Chief of Everything) when you first start. As your company grows, be ready to take on the CEO position.
Win-win collaborations are the best.
Have a pirate mentality; get involved!
It’s ok to revise and update your business plan; even when you are operational, keep reviewing and updating.
Hoarding equity does not increase your overall company.
Raise money when you don’t need it.
It’s not a race, it’s a marathon.
Conclusion
The trio reports some great things coming up. Reginald states that JustinCredible is launching their lifetime strains next harvest. Ulysses says that Major Bloom will continue to carry JustinCredible flower, and bring unique products to the market like slow-burning blunts and infused pre-rolls. They are also working on an edibles chocolate line and a beverage line. Seun says that Elev8 has two additional dispensary openings in Massachusetts, making Elev8 Cannabis Dispensary the first minority-owned company to own and operate three dispensaries in the state.
The Massachusetts Supreme Judicial Court on Monday ruled in favor of a cannabis business that it can operate as a for-profit business, Courthouse News reports. In the ruling, the justices determined that the state’s cannabis legalization law preempted the town of Mansfield’s bylaws which required cannabis dispensaries to operate as not-for-profits.
The dispensary owner, Ellen Rosenfield, started the medical cannabis dispensary prior to the state’s passage of the broad legalization law and in 2017 the state began allowing dispensaries to operate as for-profit ventures. The following year, Rosenfield converted her business to for-profit status, but neighboring businesses filed a lawsuit arguing that while state law had changed, the town’s bylaws had not.
“The Legislature evinced its clear intent to allow for-profit entities to distribute medical marijuana. This legislative purpose cannot be achieved in the face of [Mansfield’s] by-law on the same subject.” — Massachusetts Judicial Supreme Court Ruling via Courthouse News
The court also rejected the town’s argument that under the state law medical cannabis dispensaries could only convert to for-profit status if their facilities were actively “engaged” in cannabis sales and that since Rosenfield’s business was in start-up mode at the time the state law was passed, she wasn’t “engaged” in sales.
The court ruled “engaged” means simply involved or occupied with and that “it hardly can be said that the plaintiffs were not ‘involved in’ and ‘occupied’ by the sale of marijuana, even though the dispensary is not yet operational.”
Rosenfield’s attorney, Jason Talerman of Mead, Talerman & Costa in Millis, told Courthouse News that, in the ruling, “the court is saying, ‘Let’s not throw up artificial barriers; let’s figure out how to manage it instead of just saying no.’”
All seven of the court’s justices were appointed by Republican Gov. Charlie Baker who opposed the ballot initiative to legalize cannabis in dispensaries.
A Massachusetts cannabis company will pay almost $300,000 in restitution and penalties for violating state wage and hour laws, the state Attorney General’s Office announced on Thursday. Theory Wellness, which has three locations in the state, failed to pay hundreds of employees premium pay and covered holidays, in violation of state law.
In a press release, Attorney General (AG) Maura Healey (D) said nearly 300 employees were not paid properly by the cannabis company and “will now be made whole.”
The AG’s Fair Labor Division began its investigation in December 2020 following a worker complaint. The investigation found that 282 employees were owed hundreds of thousands of dollars in premium pay—1.2 times their hourly rate—for Sunday and holiday work. In 2018, Massachusetts lawmakers passed a bill that will see those rates go down to 1.1 times employee pay next year, and premium pay will be eliminated in 2023.
Under the terms of the settlement, Theory agreed to pay in full all wages owned to its employees. The AG’s Office said the company “cooperated with the investigation and has since come into compliance with the premium and holiday pay laws.”
In a statement to MassLive, Theory described the situation as “inadvertent payroll errors” and said they “worked closely and openly” with the Attorney General’s Office “as soon as they were made aware” of the claims.
“Most importantly, we had the opportunity to provide additional compensation to the former and current members of our team who were affected to resolve this matter swiftly,” the company said.
“The complexities of a cannabis company are vast with a litany of traditional business-related resources, such as mainstream payroll providers that handle setting up pay rates, unwilling to provide services due to our classification federally,” Theory said in the statement. “This audit has been an opportunity to correct our policies and reaffirm our commitment to our team members, who make Theory what it is today.”
A lawsuit filed in Massachusetts is seeking to stop the state Department of Corrections (MDOC) from using a drug test manufactured by Sirchie Acquisition Company, LLC that attorneys for plaintiffs describe as faulty. The test is used on incoming mail to inmates and the lawsuit claims have led to a “slew” of false-positive results, with one MDOC employee estimating false-positive results as high as 80%.
Ellen Leonida, a partner at BraunHagey & Borden said they brought the lawsuit “to protect disempowered people incarcerated by the DOC from the unconscionable decision to use these tests in the face of overwhelming evidence of their inaccuracy.”
“We also intend to hold the drug companies liable for knowingly profiting from the misuse of these tests and the misery they are causing.”— Leonida in a statement
The lawsuit claims that the Sirchie test claims to detect synthetic cannabinoids but is fooled by innocuous chemicals found in most commercial paper. The complaint alleges the accuracy of the test to “witchcraft, phrenology or simply picking a number out of a hat.”
Once a test comes back positive, prisoners are given two choices: plead guilty and accept punishment or maintain innocence and be subjected to solitary confinement and loss of privileges for months while the agency completes a proper laboratory test. If the prisoner chooses to have a proper test conducted, they are subject to fines and expenses for paying for the test.
The lawsuit contends that the use of the test interferes with the fundamental right to counsel and due process as prisoners fear communication by mail, including with their court-appointed counsel, due to the false positivity rate of the tests.
In addition to the corrections department and Sirchie, the lawsuit names the drug company’s sales agent Premier Biotech, Inc as defendants. Nonprofit law firm Justice Catalyst Law is also representing the plaintiffs.
