Colorado to Subsidize Up to $5000 in Business Services for Social Equity Cannabis Licensees

4/04/2024

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Colorado Governor Jared Polis (D), in collaboration with the Cannabis Business Office (CBO) within the Colorado Office of Economic Development & International Trade (OEDIT), has announced the launch of the Access to Experts pilot program, according to an official press release. This initiative is designed to support Colorado’s social equity licensed cannabis businesses, offering them access to subject matter experts in compliance, marketing, and financial consulting at minimal or no cost.

The program was announced at the Minority Cannabis Business Association (MCBA) Equity Workshop Tour, emphasizing the significance of diversity within Colorado’s cannabis industry. Later, the governor addressed the National Cannabis Industry Association (NCIA) Colorado Stakeholder Summit, which included discussions on policy updates and community stories.

Access to Experts allows participating businesses to engage with experts on projects like compliance audits, brand identity creation, or investor pitch decks. These experts are chosen based on their specialized knowledge and experience, offering businesses a wide range of choices.

“Creating a website or getting started on social media can make a big difference in a cannabis business’ ability to connect with customers, just as a compliance audit can bring peace of mind and improve operational excellence. This program removes the financial barriers to getting critical business guidance.” – Eve Lieberman, OEDIT Executive Director

Eligible businesses, specifically social equity licensees, must submit a project proposal to be considered. The process includes a complimentary 30-minute introductory meeting to outline the project scope. Depending on the project, the CBO may cover up to $5,000 in fees.

This initiative is part of a broader suite of CBO programs, including the Cannabis Business Grant, offering $20,000-$25,000 for early-stage startups and $50,000 Growth Grants for existing businesses. There’s also a Cannabis Business Loan Program for larger, more established companies. These programs underscore OEDIT’s commitment to fostering a conducive business climate in Colorado, supporting diverse economic development and job growth across the state.

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Hawaii House Finance Committee Kills Adult-Use Cannabis Bill

4/03/2024

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The Hawaii House Finance Committee has killed an adult-use cannabis legalization bill, KHON2 reports. In a statement, committee Chairman Kyle Yamashita (D) cited “numerous concerns regarding the implementation of the bill” and “the prevailing ‘no’ votes from committee members expressed on the House floor.” 

“During an abnormally fiscally challenging year, the committee must prioritize addressing wildfire-related expenses after the Aug. 8 tragedy in Lahaina and Upcountry Maui. Ensuring the recovery of our communities continues to come at an extraordinary cost to the state budget, and the full cost of implementing the legalization of adult-use cannabis is unknown. As lawmakers, it would be remiss of us not to allocate funding to safeguard critical government services, including education, infrastructure, roads, and other essential services for Hawaiʻi’s residents and kūpuna, especially during a period of fiscal uncertainty.” — Yamashita, in a statement, via KHON2 

The measure had passed its second reading in the Senate, which Yamashita noted was the “furthest progression” of an adult-use cannabis bill in the state. 

Rep. David Tarnas (D), one of the main sponsors of the legislation, told KHON2 that the measure made it so far “because of the hard work of the Attorney General and the House of Representatives and the Senate working together with the Department of Health to find the best practices from other states.”  

Tarnas indicated plans to reintroduce the bill next session.

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Alabama Bill Would Add Medical Cannabis Licenses as Lawmaker Tries to Get ‘Commission Out of Court’

4/03/2024

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A bill filed Tuesday in Alabama seeks to increase the number of medical cannabis dispensary, processor, and integrated facility licenses as lawmakers push to end the legal dispute that has plagued the state’s program since the awarding of licenses was first announced last June, the Alabama Reflector reports. The measure would also require the Alabama Medical Cannabis Commission (AMCC) to confirm any licenses granted by the commission from June to December of last year by June 15.

The bill would increase the number of dispensary licenses from four to seven, the number of processor licenses from four to six, and require the AMCC to issue 15 integrated facility licenses, which would allow businesses to cultivate, process, and distribute medical cannabis.  

State Sen. David Sessions (R), the bill sponsor, said the bill’s goal “is to try and get the commission out of court.”   

Alabama’s medical cannabis licensing process has been plagued by delays:

  • First, the licensing process was paused due to “potential inconsistencies in the tabulation of scoring data;
  • Then, a lawsuit claimed the AMCC violated the state’s open meetings law;
  • Another claimed the commission had no right to revoke and then re-award medical cannabis licenses that may have been affected by the data error;
  • Another lawsuit accused the AMCC of wrongfully implying one of the company’s owners or senior directors had a criminal record;
  • And another claimed regulators unfairly revoked a company’s original license by excluding it from the second licensing round.

In all, the AMCC has run three licensing rounds, but the agency remains in court over its process. Sessions said the bill would provide licenses to the four companies that were previously granted licenses but did not receive them in the most recent round.  

In a statement, Will Somerville, attorney for Alabama Always, which has brought several lawsuits against the AMCC, said the bill would not solve the problems and could actually make them worse. 

“This bill will not settle any of the ongoing controversy or litigation. Legislation should be developed that will fix the major flaws in the commission’s actions and allow legitimate companies that followed the law to begin to provide products to Alabamians who desperately need it. This bill does the opposite.” — Somerville, in a statement, via the Alabama Reflector 

Somerville pointed out that the bill would give licenses to companies wrongly awarded licenses in the first place and that seven of the nine companies do not meet the program’s original requirements.  

Lawmakers approved the original legislation in 2021. The bill to add new licenses is currently in the Senate Agriculture, Conservation and Forestry Committee. 

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Iowa Senate Approves Bills to Add Age Restriction for THC-Hemp Products, Double Medical Cannabis Licenses

4/03/2024

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The Iowa Senate on Tuesday approved a bill to impose an age threshold of 21 for consumable hemp products containing THC, We Are Iowa reports. The measure also includes 4 milligram THC serving limit caps, with limits of 10 milligrams per container.

State Sen. Dan Dawson (R) argued during the bill debate that the limits are necessary because products available in the state under the Iowa Hemp Act need “to be at a milligram usage less than our medical cannabidiol program, otherwise the lines are blurred.”

The legislation passed the House last month and moves next to Republican Gov. Kim Reynolds.

The chamber also passed a bill to double the number of medical cannabis dispensaries in the state from five to 10, which state Sen. Scott Webster (R) said would “be beneficial to prices” for medical cannabis products and that the state’s licensed businesses “can scale better by having more and more licenses.”

The measure was seemingly opposed by Bud & Mary’s group president Lucas Nelson, whose company holds one of the five dispensary licenses, who noted that patient numbers in Iowa are declining as nearby states are moving forward, or have already moved forward, with adult-use programs.

That bill moves next to the House.

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Report: Total Delinquent Payments In Cannabis Industry Have Reached $3.8 Billion

4/03/2024

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U.S. medical and adult-use cannabis companies have tallied up $3.8 billion in delinquent payments with total late payments on track to reach $4.2 billion in 2024, according to survey data and analysis from the Whitney Economics 2023 U.S. Cannabis Delinquent Payments Report.

The report found that the delinquent payments issue is universal to the cannabis industry but tends to hit cultivators harder than retailers; the delinquent payments also have a greater impact on smaller and minority operators. Additionally, 44% of respondents said that late payments by cannabis companies had impacted their ability to pay their own debts, while 34% said it had affected their ability to make tax payments.

Survey respondents were given the opportunity to provide written input — “I would love to pay my bills, if others would simply pay me first so I could do so,” said one respondent who had delinquent payments.

“The pressures created by current macroeconomic factors and regulatory policies have incentivized operators to stop paying their suppliers,” Beau Whitney of Whitney Economics said in a press release.

“This data further affirms the fact that the cannabis industry is struggling. Unless there is some form of federal and state regulatory intervention, the issues associated with the lack of payments will only get worse.” — Whitney, in a statement

More than half of survey respondents (57.3%) said that delinquent payments have a greater impact on their business than Section 280E of the Internal Revenue Code.

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Oregon Gov. Signs Bill to Recriminalize Drug Possession

4/03/2024

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Oregon Gov. Tina Kotek (D) on Monday signed a bill into law undoing major provisions of the state’s landmark, voter-approved drug decriminalization policy.

With the governor’s signature, House Bill 4002 — passed by lawmakers in early March — officially takes effect September 1, after which state law enforcement will again be able to file misdemeanor charges for possession of a controlled substance.

The law establishes new criminal penalties including potential jail time for the possession of fentanyl, heroin, and meth.

In her signing letter for House Bill 4002, Kotek recognized that the public has expressed “significant interest and concern regarding the recriminalization of possession of a controlled substance.”

The governor said the new law offers “three pathways to avoid incarceration” and that she had met with state leaders to emphasize the importance of arrest deflection programs.

“The Department of Corrections shares my expectation that implementation of House Bill 4002 cannot be business as usual. DOC will exhaust non-jail opportunities for misdemeanor sanctions through rulemaking and work to promote a consistent approach for supervision when an individual is released to treatment.” — Kotek, in the signing letter

Some opposing lawmakers had argued that the recriminalization policy could clog up the courts and criminal justice system with low-level charges and that it was too soon for lawmakers to step in and undo the will of voters.

Oregon voters passed Measure 110 in 2020 and the initiative’s drug decriminalization policy took effect in 2021.

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Florida Voters Will Consider Legalizing Cannabis This November

4/01/2024

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The Florida Supreme Court on Monday approved the state’s cannabis legalization amendment for November ballots, ruling against a challenge brought by Attorney General Ashley Moody, USA Today reports.

The campaign behind the legalization amendment submitted the necessary signatures to qualify for the ballot last year but AG Moody asked the court to block the initiative, arguing the amendment’s ballot summary was “misleading to voters.” Five out of seven justices ruled against the attorney general’s challenge — “In light of those limited considerations, we approve the proposed amendment for placement on the ballot,” Justice Jamie Grosshans wrote in the majority opinion, according to the report.

If approved by more than 60% of state voters, the amendment will legalize the possession of up to three ounces of cannabis for personal use and up to five grams of cannabis concentrates; additionally, the state’s current medical dispensaries would be allowed to sell adult-use cannabis. The amendment was brought by the Smart & Safe Florida campaign, which is primarily funded by Trulieve, the state’s largest medical cannabis operator.

“We look forward to supporting this campaign as it heads to the ballot this Fall,” Trulieve CEO Kim Rivers said in the report.

A poll published in December found that 67% of Florida voters reported plans to vote “yes” on the upcoming cannabis legalization amendment.

Florida voters passed the state’s medical cannabis program in 2016 with 71% approval.

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22 AGs Call on Congress to End Hemp Intoxicants ‘Loophole’ in Federal Farm Bill

4/01/2024

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In a March 20 letter to members of Congress, 22 attorneys general called for “much-needed improvements” on provisions of the 2018 Farm Bill related to hemp, which they say “unleashed…a flood of products that are nothing less than a more potent form of cannabis.”  

The products, the AGs claim, are “often in candy form that is made attractive to youth and children – with staggering levels of potency, no regulation, no oversight, and a limited capability” for the attorneys general “to rein them in.” In the letter, the AGs argue that “The current law defining hemp has resulted in exploitation” and that, when applied to foods, the 0.3% THC limit – which distinguishes industrial hemp from cannabis – “is inadequate to distinguish the potential for intoxication.”  

“The result that has been seen is excessively potent products that are manufactured under fewer controls than in states that have legalized cannabis. Because of the ambiguity created by the 2018 Farm Bill, a massive gray market worth an estimated $28 billion has exploded, forcing cannabis-equivalent products into our economies regardless of states’ intentions to legalize cannabis use, and dangerously undermining regulations and consumer protections in states where adult-use legal cannabis programs are already in place.” — Attorneys General, in the letter, March 20, 2024 

The AGs call for the federal definition of hemp under the Farm Bill, which is reauthorized every five years, to be “amended to clarify that there is no federal hemp intoxicants loophole,” and that the next reauthorization “should reaffirm that members of Congress do not intend to limit states in restrictions or regulations related to cannabinoids or any other derivatives of hemp which are deemed intoxicating.”  

The letter includes signatories from both Republican and Democrat attorneys general, including states that have legalized cannabis broadly for adult use. The letter was sent to Rep. Glenn GT Thompson (R), chairman of the House Committee on Agriculture; Rep. David Scott, ranking member of the House Committee on Agriculture; Sen. Debbie Stabenow (D) chair of the Senate Committee on Agriculture, Nutrition & Forestry; and Sen. John Boozman (R), ranking member of the Senate Committee on Agriculture, Nutrition & Forestry.  

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Delaware Bill to Expand Medical Cannabis Access Moves to Governor

4/01/2024

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The Delaware Senate on Thursday approved a bill to expand medical cannabis access by allowing healthcare providers to determine whether their patients can benefit from medical cannabis and permitting individuals 65-and-older to self-certify their medical conditions to obtain a program certification, the Delaware News Journal reports.

The bill was approved by the state House of Representatives in January and, with Senate passage, moves to Gov. John Carney (D) for final approval.

In a statement, Sen. Kyra Hoffner (D), one of the bill’s sponsors, said the “changes will allow healthcare providers to make sound decisions about which treatments best fit their patients, and make those treatments more readily accessible to people who need them the most.”

If approved by the governor, the measure would end requirements that patients must suffer from one of more than a dozen qualifying conditions to access the state’s medical cannabis program; eliminate the CBD-rich and compassionate use programs currently used to treat conditions outside of the specific qualifying conditions for medical cannabis; allow the state Department of Health and Social Services to issue registry cards that are valid for up to three years, and allow the issuance of permanent cards to patients diagnosed with terminal illnesses; and allow reciprocity for medical cannabis patients from other states or U.S. territories.

The medical cannabis expansion bill comes nearly a year after lawmakers legalized cannabis for adult use. Carney allowed that bill to become law without his signature.

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Western Washington University Adds Cannabis Product Development Course to Cannabis-Related Offerings

4/01/2024

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Western Washington University (WWU) is partnering with cannabis education company Green Flower on a Cannabis Product Development and Design Certificate, KOMO News reports. The program builds on WWU’s current cannabis certificate program offerings, which include Cannabis Healthcare & Medicine, Cannabis Agriculture & Horticulture, the Business of Cannabis, and Cannabis Compliance & Risk Management. 

According to WWU’s website, the course allows students to “delve deep into the science of cannabis extraction, how to craft exceptional products that cater to a variety of preferences and needs, and strategies for building a compelling cannabis brand.” 

Green Flower CEO Max Simon told KOMO News that the program covers “all sorts of different kinds of products from edibles to tinctures to topicals to concentrates and more.”  

“It brings a real form of legitimacy and trust and credibility especially to people who take these programs because you can really use the university’s credibility as a leverage point.” — Simon to KOMO News 

The program includes Cannabis 101: History and Practice Across Industries and two levels of Cannabis Extraction, Products, and Design. The programs offered under the WWU and Green Flower partnership run online for 24 weeks and start at $499 per month. 

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Florida Supreme Court to Issue Cannabis Ballot Ruling Today

4/01/2024

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The Florida Supreme Court will announce this afternoon its ruling on whether or not the state’s adult-use cannabis legalization amendment will be allowed to appear on November ballots, ClickOrlando reports.

The court has until April 1 to decide on the issue after Attorney General Ashley Moody challenged the amendment’s ballot language last year. The court issued a statement last week stating it will release its “out-of-calendar” opinions at 4:00 pm on Monday, according to the report.

The following ballot summary language has been under review for months by the Florida Supreme Court:

“Allows adults 21 years or older to possess, purchase, or use marijuana products and marijuana accessories for non-medical personal consumption by smoking, ingestion, or otherwise; allows Medical Marijuana Treatment Centers, and other state licensed entities, to acquire, cultivate, process, manufacture, sell, and distribute such products and accessories. Applies to Florida law; does not change, or immunize violations of, federal law. Establishes possession limits for personal use. Allows consistent legislation. Defines terms.”

The court did not indicate how it may rule but Gov. Ron DeSantis (R) said in January that he believes the court will allow the cannabis legalization issue to be decided by voters.

In addition to the cannabis issue, the court will also be deciding on an amendment seeking to enshrine the right to have abortions.

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Cannabis Is Officially Legal In Germany – What You Need To Know

3/31/2024

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Editor’s note: this article was originally published by ICBC, and has been republished with permission.

It’s official – with the clock striking midnight in Germany, and the date changing from March 31st to April 1st, the nation’s new adult-use cannabis legalization policy has become the law of the land. Adults (18 years old and older) in Germany may now partake in the newly established freedoms created by the implementation of the first pillar of the CanG law.

“It was time to initiate a paradigm shift in drug policy, ending the failed prohibition policy of the last hundred years.” stated Kai-Friedrich Niermann, leading attorney at KFN+ Law Office, about the historic change in Germany’s cannabis policies.

Germany is not the first country to have passed a national adult-use cannabis legalization measure, however, legalization in Germany is the most significant national policy change of its type since the start of global cannabis prohibition many decades ago. Below are the most noteworthy provisions of Germany’s new cannabis law that consumers and patients should know about.

Narcotics De-listing

Cannabis is being removed from Germany’s Narcotics List now that the new law is implemented, and the significance of that policy change cannot be overstated. One thing that may not be on everyone’s radar, but should be, is that the de-listing of cannabis in Germany will improve safe access for medical cannabis patients by removing some hurdles in the medical cannabis supply chain and streamlining processes for pharmacies. Cannabis research will be easier to pursue, and hopefully academic institutions will begin to receive national and/or EU-provided funds for specific research projects.

Historically, the cultivation of medical cannabis in Germany was regulated by a licensing procedure, with the nation’s Federal Office for Drugs and Medical Devices making the final determination on the quantity and price of domestically produced medical cannabis. Imports were not subject to the same process, and that provided a huge advantage to companies based outside of Germany. Germany’s new adult-use cannabis law should provide a tremendous boost to the domestic medical industry.

Personal Cultivation

The main initial way for adults to legally source cannabis in Germany once the new law takes effect is to cultivate it in their homes. Adults will be able to cultivate up to three plants in private for personal use according to the proposed measure. Personal cannabis cultivation is popular in other jurisdictions where it is permitted, including in jurisdictions where consumers have other options from which to legally source their cannabis like storefronts.

It’s virtually guaranteed that many adult consumers in Germany will choose to cultivate their cannabis, and that will, in turn, create massive opportunities overnight for companies that specialize in cultivation-related products and services such as seeds, grow lights, plant nutrients, harvesting equipment, odor control, and drying equipment. Cannabis seeds and clones are legal in Germany now, including for adults who are not citizens of Germany.

Personal Possession

In addition to being able to cultivate cannabis, adults in Germany are now permitted to possess a personal amount of cannabis (up to 25 grams). In addition to the expressed legal possession limit, penalties for possessing slightly more than the legal threshold will be considered an ‘administrative violation’ in Germany rather than a criminal offense yielding jail time.

According to a 2021 report from Heinrich Heine University Dusseldorf, Germany will save an estimated 1.05 billion euros annually by no longer enforcing cannabis prohibition, in addition to judicial savings of 313 million euros per year.

Cannabis Clubs

Another component of Germany’s new law involves permitting the launch and operation of noncommercial cannabis clubs. Clubs are currently expected to start on July 1, 2024. Membership-based noncommercial clubs, from which adult consumers can legally source their cannabis, will be subjected to various regulations. Seeds and clones are expected to be largely sourced from noncommercial clubs once they launch.

One of the sticking points leading up to the recently reported final coalition agreement was the implementation of noncommercial clubs, and part of the coalition’s compromise was to stagger the implementation date. After the launch, non-commercial clubs will likely be common throughout most of Germany.

Future Policy Modernizations

The previously listed items are part of the ‘first phase’ of Germany’s legalization plan, often referred to as ‘the first pillar.’ The second phase/pillar involves the launch of regional adult-use cannabis commerce pilot programs, like what is already in place in the Netherlands and Switzerland, but on a significantly larger scale. Advocates will need to work extra hard in the coming months to ensure that Germany’s legalization launch is a success.

“The most interesting questions are now how the law will be applied in practice and whether, shortly after entering into force, it will be amended to keep up with the minister’s promises. The development of the coming weeks will be of great interest to the cultivation associations, which may have to adjust their intended organizational setup.” stated Peter Homberg of leading international law firm Dentons (see Peter’s full interview in the embedded podcast video below).

“There is still a long way to go before complete destigmatization and fair legalization are achieved. Neither the consumers, nor the activists, nor the industry must let up on this path, but must continue to do everything in their power every day to ensure that this path can be taken successfully.” stated Kai Friedrich Niermann of KFN+ Law Office.

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Virginia Gov. Vetoes Bill to Legalize Cannabis Sales

3/29/2024

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Editor’s note: this article originally appeared in The Outlaw Report, and has been republished with permission.

Gov. Youngkin vetoed a democratically passed cannabis adult-use market bill maintaining his blockage to set up the Virginia legal market. Democrats legalized adult-use cannabis in 2021, but a shift to a republican controlled government stopped any implementation.

Democrats sent a bill to Gov. Youngkin’s desk a few weeks ago that would launch the market. He let it sit on his desk, but said people who thought he would sign it “must be smoking something.”

He vetoed the Bill yesterday citing the endangerment of Virginians’ health and safety. “States following this path have seen adverse effects on children’s and adolescent’s health and safety, increased gang activity and violent crime, significant deterioration in mental health, decreased road safety, and significant costs associated with retail marijuana that far exceed tax revenue,” he wrote in his veto statement.

However, research does not back up his claims. Much of the increase in illicit markets in California and New York is due to poor implementation. Legalizing cannabis doesn’t lead to a surge in teen use, and one study said there is no increase at all.

Chelsea Higgs Wise, the leader of Virginia’s pro-legalization Marijuana Justice group wrote on X: “Gov Younkin’s commitment to perpetuating the harms of the drug is deeply embarrassing. With the stroke of a pen he has reinforced yet another barrier for Virginians. This doesn’t just impact individuals, it reverberates through families, education & housing.”

As the Governor continues to stall on implementation, the illicit market continues to grow in Virginia. Adult sharing cannabis clubs continue to pop up mimicking D.C.’s gray cannabis market, and over 90% of patients purchase cannabis from sources other than the Virginia medical market due to high prices in the medical market. The largest proportion of product is obtained from the unregulated market, according to the state’s own study.

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Kansas Lawmakers Reject Medical Cannabis Reforms for Another Year

3/29/2024

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Kansas lawmakers have opted to table the state’s medical cannabis legalization proposal and the bill is unlikely to be considered again until January 2025, the Kansas Capital Bureau reports.

Lawmakers heard testimony about Senate Bill 555 on Thursday before tabling the bill. Kansas lawmakers have now rejected medical cannabis legalization three years in a row after last year’s proposal was similarly tabled in the Senate Committee on Federal and State Affairs — that event had followed yet another proposal from 2022.

This year’s bill, which was crafted by Wichita-based hemp producer Kansas Natural Remedies (KNR), was rejected despite being designed to create one of the country’s most restrictive medical cannabis programs.

“I’m sure this is going to be something that’s going to be attempted every session from here on out… and we just have to remain vigilant and say… wait a minute… let’s look at the facts,” the committee chair Sen. Mike Thompson (R) said in the report. “It will increase the amount of violence and drug cartels….”

Law enforcement representatives also voiced concerns about the effects of loosening the state’s cannabis laws.

KNR Chief Operating Officer Sam Jones said they were “angry” about the decision, arguing that opponents had alluded to non-existent provisions to allow psychedelics when determining to table the proposal for another year.

“The argument against medical cannabis is one of fear and ignorance. This bill was crafted to be as restrictive as possible, but that still wasn’t enough to get it over the line for some of the people buying into the fear.” — Jones, via the Kansas Capitol Bureau

If passed, the =proposal would have established medical cannabis access for patients with one of 16 debilitating medical conditions. Patients would have required a doctor’s recommendation to access the program and the industry would have only supported four cannabis operators, which drew criticism from some advocates. Lastly, the program would have sunset itself after five years unless lawmakers acted to extend it.

A poll last year found that nearly 70% of Kansas voters support fully legalizing cannabis.

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D.C’s First Transitioning I-71 Cannabis Gifting Stores Cleared to Open as Legal Medical Dispensaries

3/29/2024

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Editor’s note: this article originally appeared in The Outlaw Report, and has been republished with permission.

The first medical dispensaries transitioning from unlicensed operators to the legal market were given licenses to open on Mar. 27, 2024.

The three stores (Green Theory, Wishing Wellness, Don Fuego) are the first to complete the transition process from I-71 gifting stores to legal medical dispensaries. One current medical license also received a license to open a new retail store in Chinatown.

D.C.’s efforts to establish an adult-use market have been stymied for almost a decade by the Harris Rider in the federal spending bill which prevents the District from using tax dollars to set up a legal market.

I-71 gifting stores proliferated across D.C. since the I-71 amendment went into effect in 2015. I-71 allowed the gifting of small amounts of cannabis between people without exchange of money. However, businesses used it as a loophole to sell weed by charging high prices for inexpensive items and gifting THC-products alongside.

Stores exploded around D.C. into the hundreds, sometimes dotting street corners right next to each other. The Medical Cannabis Amendment Act of 2022 established a process to fold these gray market stores into a legal market expansion. The stores had 90 days to apply for a legal license, but just over 70 stores submitted applications to ABCA this winter.

Though early gifting businesses faced regular raids and enforcement by police and federal authorities, little prosecution occurred in the last few years. A safe harbor law even protected shops from enforcement for a year until the end of January 2024.

Of the 75 businesses that applied, 30% have received placards – the first step to getting a legal license. After a placard, businesses must face protests from their local neighborhood association and enter into settlement agreements.

Individuals are not allowed to protest these businesses, only local ANCs. The ANC can only protest a business based on concerns about peace and quiet, parking needs and pedestrian safety or property values. This has caused controversy for Green Theory as parents are now up in arms about its proximity to schools.

28% of unlicensed applicants are still being processed by ABCA and over 25% have been denied. There are seven applicants that have settled with their ANC’s and are likely to receive official licenses in the next few weeks.

A total of 35 legal medical dispensaries could be coming online in the next three months despite not a single new cultivation center opening, raising concerns about supply in an already downward sloping medical market. Five currently open medical dispensaries sold under 400 lbs of cannabis flower in February.

Issues with zoning, real estate and funding have blocked many conditional cultivation and manufacturers from moving forward with their applications in the District.

A self-certify medical patient system in D.C. hopes to transition many of the current I-71 clientele to registered medical patients, but doubts swirl if people will legally register to shop at the new stores, especially with a legal adult-use market next door in Maryland.

Two additional retail licensing application periods, including a current social equity period, will offer an opportunity for additional businesses to receive conditional or standard licenses to open medical dispensaries and delivery services this year.

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Pew Research: 88% of Americans Support Some Form of Cannabis Legalization

3/27/2024

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Nearly 90% of Americans believe cannabis should be legal for either medical or adult use, according to a Pew Research Center poll released on Tuesday. The poll found 57% support for both medical and adult use and 32% support for only medical use (88% net legal), with just 11% opposed to legalization of any kind.

The poll found 52% of respondents said adult-use legalization is “good” for local economies, with 29% saying it had “no impact” and 17% saying it is “bad.” Forty-two percent said it makes the criminal justice system “more fair,” with 38% believing it would have “no impact,” and 18% saying it would make it “less fair.”  

The majority of respondents (42%) polled rejected the gateway theory – that cannabis legalization leads to the use of hard drugs such as heroin and fentanyl – with 29% saying it would increase the use of hard drugs and 27% saying it would have the opposite effect. Another majority (44%) said cannabis legalization would have “no impact” on the overall safety of communities while 21% said the reforms would make communities “more safe,” and 34% said it would make them “less safe.”  

Democrats and Republicans were split between what they believed would be the potential ramifications of the reforms: Majorities of Democrats and Democratic-leaning independents said adult-use legalization would be good for local economies (64%) and would make the criminal justice system fairer (58%); while fewer Republicans and Republican-leaning independents said the reforms would have a positive effect on local economies (41%) and the criminal justice system (27%). 

Republicans were also more likely than Democrats to see downsides from broad cannabis legalization with 42% of Republicans believing it would increase the use of other drugs, compared with just 17% of Democrats; and 48% of Republicans saying it would make communities less safe, more than twice the number of Democrats (21%). 

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Arizona Cannabis Sales Total $1.43B in 2023

3/27/2024

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Combined adult-use and medical cannabis sales in Arizona totaled $1.43 billion last year, AZ Mirror reports. Adult-use sales reached $1.1 billion while medical cannabis sales totaled $348 million.  

It’s the third consecutive year legal cannabis sales in Arizona hit $1.4 billion. 

Adult-use sales accounted for 76% of the state market in 2023, up from 70% the year prior and 45% in 2021, the first year of adult-use sales in the state, the report says. Medical cannabis sales totals are at record lows, comprising less than a third of the state’s cannabis sales total. 

The state collected $172.8 million in adult-use excise taxes in 2023, which is split between public safety (31%), the Highway User Revenue Fund (25%), and the Justice Reinvestment Fund (10%). 

The state Department of Health Services reports a steep decline in registered medical cannabis patients in the state since the passage of the adult-use law. In February there were 111,168 qualifying medical cannabis patients, down from 113,694 in January, and 115,914 in December. February’s total marks a near 63% decrease from the 299,054 registered patients enrolled in the state medical cannabis program at its height. Medical cannabis patients pay a 6% tax on sales while adult-use cannabis products carry a 16% excise tax in addition to the state’s 5.6% sales tax.

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New Hampshire Lawmakers Working to Meet Governor’s Demands in Latest Cannabis Legalization Bid

3/27/2024

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Lawmakers in New Hampshire are again seeking to legalize adult-use cannabis this session, WMUR reports. This time, lawmakers are attempting to meet all of the terms set by Republican Gov. Chris Sununu – including state-run dispensaries – to avoid his veto. 

Last year, Sununu laid out his vision for a legal market in New Hampshire, which included a 15-store cap and a ban on lobbying and political contributions by cannabis licensees. After years of strong opposition to the reforms, Sununu admitted in an interview in May 2023 on WMUR’s CloseUp that adult-use legalization in the state “is probably inevitable in some way or form” but wants the state’s program to focus “on harm reduction as opposed to profits.” During the interview, Sununu said he would support reforms that included a state-run sales model, similar to the state’s liquor stores, which he said would prevent what he calls “Marijuana Miles” – or strings of “pot shop, after pot shop, after pot shop – that he’s seen in other states.    

In an interview with WMUR, Daryl Eames, of the New Hampshire Cannabis Association, pushed back on the state-run model, saying it could invite federal intervention by putting the state “directly under the purview of the Federal Trade Commission (FTC) and the federal franchise regulations.” 

“…Which means, in theory, that if a franchisee decided that they were being treated unfairly, they could lodge a complaint with the FTC. And if the FTC finds it has merit, they could launch a federal investigation into the state of New Hampshire.” — Eames to WMUR 

Last year, the New Hampshire House passed for the third time broad, adult-use reforms but the Senate rejected that proposal, as it had both previous times. Following the failure in the Senate, lawmakers sought legislation that met Sununu’s model. The House Commerce Committee, however, couldn’t agree on how to proceed with a plan to implement the state-control system — with a major factor being how the state would treat the medical cannabis operators — and ultimately gave up on the effort.   

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Minnesota Proposal Would Double Cannabis Patient Home Grow Limits

3/27/2024

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Medical cannabis patients in Minnesota would be allowed to grow up to 16 cannabis plants under a new proposal in the state House of Representatives, CBS News reports.

Under current Minnesota law, any adult aged 21 or older can grow up to eight cannabis plants (with a maximum of four flower plants at once). The proposal seeks to double that limit for people registered with the state medical cannabis program, and would also allow patients to designate caregivers to grow for them.

“As it stands, people with disabilities and conditions that qualify them to be on the medical program can only grow their own if they know how to, if they can afford to, if their condition or living situation allows them to or if they know someone who will gift them homegrown products.” — Rep. Jessica Hanson (D), via CBS News

Minnesota’s medical cannabis program launched in 2014 and covers 19 qualifying conditions including cancer, chronic pain, and post-traumatic stress syndrome.  Additionally, the state’s adult-use cannabis legalization policy took effect last year, although the adult-use cannabis market’s launch in Minnesota is not expected until next year at the soonest.

In the meantime, cannabis regulators recently announced new restrictions on hemp-derived cannabinoid products after an investigation found that many products available at hemp retailers tested above the legal delta-9 THC limit.

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San Francisco’s ‘Hippie Hill’ Organizers Say This Year’s 4/20 Event Is Canceled

3/27/2024

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The organizers of San Francisco’s annual 4/20 cannabis festival in Golden Gate Park announced Tuesday that this year’s event has been canceled. Event organizers cited low sponsorship from the struggling cannabis industry and staffing concerns due to recent budget cuts for the city’s Recreation & Parks Department.

For decades, cannabis supporters and enthusiasts have flooded Golden Gate Park’s Hippie Hill on April 20 — the event has historically drawn tourists from all over the state and beyond. In recent years, city officials have facilitated live music and allowed cannabis licensees to put up booths to serve the crowds.

“Unfortunately, the 420 Hippie Hill event in Golden Gate Park will not be happening as planned this year—due to city wide budget cutbacks, the climate of the cannabis industry & economy we have been unable to secure enough financial sponsorship to get everything required for a safe, clean, city & state compliant event. We encourage everyone to go support their local equity brands, dispensaries, and lounges on 4/20 as we all celebrate plant medicine. We will be back next year!” — Statement via 420HippieHill.com

The San Francisco Recreation & Parks Department confirmed the event’s cancellation in a press release, announcing the park would instead host volleyball and kickball tournaments in the area on April 20.

“We understand the disappointment and hope to make it up with a great event next year,” event organizer Alex Aquino said in the release. “We encourage everyone to go support their local equity brands, dispensaries, and lounges on 420 as we all celebrate plant medicine. Additionally, we are inviting everyone to join us next month at Carnaval May 25-26 as one of SFs longest running free community cultural events.”

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Long-Awaited Maryland Lottery Awards First Social Equity Cannabis Licenses

3/27/2024

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Editor’s note: this article originally appeared in The Outlaw Report, and has been republished with permission.

After a 73-day delay, Maryland held its first cannabis lottery for adult-use licenses on March 14, 2024. The lottery awarded 174 lucky applicants dispensary, grower or processor licenses.

This was the first opportunity for new businesses to enter the market since adult-use cannabis was legalized last summer. Until now, only existing medical dispensaries that expanded to adult-use sales have benefited from the explosion in profit. According to reports, adult-use sales generated an additional $447 million in the first nine months.

Both Calvert and Talbot County were not included in the lottery due to pending litigation. 

Over 1,500 applications qualified for the social equity lottery, which was part of a larger pool of about 3,000 applications submitted last fall. Multiple lawsuits challenging the social equity requirements ultimately failed to delay the lottery.

Mainor Ramirez and his wife, Shalain, were among the lucky winners. They entered the lottery for a micro dispensary license in the Southern district where their chance of winning was less than 3%. Their business, ShayshayTreats and Delivery Service, was one of only two winners chosen from 71 applicants.

The Ramirez’s, who identify as Black and Latino, qualified for social equity in the fall. Being on the starting line of a race for two and half months while they waited for the delayed lottery was not easy. Mr. Ramirez said the couple had to put everything in their lives on hold, but now that they’ve won:

“It feels unreal. [I am] overwhelmed with joy and happiness, and excited but nervous for what’s to come,” Ramirez said. Stepping into the legal market is intimidating, but the couple have waited a long time for an opportunity like this.

According to a Maryland Cannabis Administration press release, over 80% of the 1,515 qualified applicants identified as minority- or women-owned businesses.

Applicants who won licenses are now assigned an investigator who will verify the information of their application, financial information and criminal history. If for any reason a winner does not pass their verification stage, the license will be awarded to another applicant from the same March lottery pool.

Maryland’s social equity program aims to address the disproportionate impact of the war on drugs on communities of color. The first round of licenses went to individuals who could prove they belonged to communities that were over-policed and affected by mass incarceration.

“It’s nowhere near enough for what the war on drugs has done to our community and others lives which still continues to go on,” Ramirez said. “But it is a good start, especially in my area [and] for me.”

The Ramirez’s and the other winners now have 18 months to open shop. Another lottery was anticipated in May, but MCA wrote in an email last Friday, “There is no date for the next lottery.”

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DynaVap Launches The Latest In Its Flagship M Series of Dry Herb Vaporizers

3/26/2024

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DEFOREST, WI | March 26 2024 – For the past seven years, the DynaVap M has been one of the most trusted dry herb vaporizers available worldwide. Known for its quality stainless steel construction, ability to deliver big, flavorful hits despite its compact size, and its competitive price, the M has long been a favorite of thermal extraction enthusiasts and the M 7 only improves on that legacy with improved performance and an even more affordable price point.

The new M 7 features several updates including a new finless tip design for more even extraction, up to 20% less heat transfer from tip to stem, a streamlined design and unique texture for enhanced grip, and optional XL mouthpiece and condenser with multiple airflow settings – the first of its kind in the M series.

“The M was DynaVap’s first fully stainless steel Thermal Extraction Device and it empowered dry herb vaporization enthusiasts from around the world to experience the power of a desktop vaporizer in a product that fits in their pocket,” said DynaVap founder George Breiwa. The M is our flagship product and we’re excited to introduce a next generation M 7 device with several performance improvements at a price that can encourage even more people to make the move from combustion to dry herb vaporization.

Like all DynaVap products, the M is a battery free vaporizer that uses a torch or an induction heater to bake, not burn your herb. DynaVap’s products are lightweight and discrete yet deliver a highly satisfying experience with a very small amount of herb, which allows users to taste the terpenes in their flower unlike any other consumption experience.

For more information on the new M 7, please contact justin.johnson@dynavap.com. All M 7 visual assets can be found here.

About DynaVap

Dynavap is making smoking history. Recognized as a pioneer in the cannabis vaporizer industry, for years DynaVap has set the standard for Thermal Extraction Devices, being an example to follow and demonstrating how design and your experience with cannabis can elegantly go hand in hand.

The company prides itself on offering a distinct consumption experience that takes the worry out of temperature settings and battery life. Instead of using batteries or electricity, DynaVap vaporizers use a manual heating method, where the user applies an external heat source, like a torch or induction heater, to a small heating chamber in the device. When your DynaVap Cap “clicks,” your cannabis is hot enough to vaporize without combusting. This allows for precise temperature control and a more personalized vaporizing experience.

Dynavap’s business philosophy is based on innovation, simplicity, and sustainability. The brand believes in the importance of creating durable, high-quality products that can be used for years to come and is constantly looking for ways to improve its products and offer innovative solutions to cannabis consumers looking for new ways to experience cannabis.

You can learn more about DynaVap and its products at dynavap.com.

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Review Finds Many Hemp and CBD Products Sold on Amazon Mislabeled

3/25/2024

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A report published last week by CBD Oracle found hemp products sold via Amazon were deceptively labeled, with 30% containing undeclared CBD, 36% containing no hemp at all – not even hempseed oil – three of the 56 products containing large doses of delta-8 THC, and about half making an unapproved medical claim.   

To conduct the study, CBD Oracle purchased 56 products from Amazon in December 2023 and January 2024. The products were chosen based on a search for “cbd gummies,” “hemp” and similar terms used by brands, such as “delta gummies.” In all, the review included 45 gummies, eight tinctures, two topical creams, and one pack of mints. The products were available despite Amazon’s official policy banning them. The products were sent to InfiniteCal Labs for testing. 

In a statement, Erik Paulson, PhD, lab manager at InfiniteCAL, said people buying hemp or CBD products from Amazon believing they will derive some benefit are “essentially rolling the dice.” 

“You could be getting CBD-infused products, THC-infused products, hempseed oil-infused products,” he said in a press release, “or it’s very likely you would be getting a product with no hemp in it at all.” 

Of the 17 products that contained CBD, the review found “quite a lot of variation” in the amount of CBD per package. One product contained just 28 milligrams per package while another contained 1,582 milligrams. Another 62.5% contained no cannabinoids at all, while 43% “contained no hemp of any kind,” the report says. Moreover, six products contained detectable levels of THC, and three contained very high concentrations of delta-8 THC with the three highest being measured as 641 milligrams, 2,507 milligrams, and 3,028 milligrams. 

“96% of products either didn’t give dosage information or gave dosage information that was inaccurate. On average, the products in the study contained just 25% of the promised dosage in terms of cannabinoids. While the ‘dose’ specified usually didn’t say what exactly it measured, customers would likely assume this referred to cannabinoids in the context of a hemp gummy.” — Amazon’s Hemp Market: An Independent Analysis 

The report notes that all five products that claimed they had been tested for safety were found to have a clean lab report during the CBD Oracle review. 

Of the more than half of products that made unapproved medical claims, those claims were linked to sleep, anxiety, and even the common cold, while some product pages included an image of a body part with red patches or other signifiers of what the Food and Drug Administration (FDA) calls “abnormal tissue” which is meant to imply the products provides relief for those areas. 

CBD Oracle estimates that Amazon’s hemp market generates about $64 million per year despite its official ban, but it could be worth as much as $125 million per year.

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German Lawmakers Pass Cannabis Legalization With Reforms Taking Effect April 1

3/25/2024

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German lawmakers on Friday gave final approval to the long-awaited cannabis legalization bill, the Associated Press reports. The legislation, which legalizes personal possession up to an ounce and allows individuals to cultivate three plants, is set to take effect next Monday, April 1.  

A second part of the bill allowing nonprofit “cannabis clubs” will take effect July 1. Provisions in the bill will permit German residents to buy cannabis from the clubs, with limits for residents under 21-years-old set at 30 grams per month. Residents 21-and-older can purchase up to 50 grams per month. Daily purchase limits for residents 18-and-older are set at 25 grams per day, the report says. The clubs, will be funded through membership fees, which are determined by how much cannabis members purchase. Clubs may have a maximum of 500 members.  

In a statement posted to X, Health Minister Karl Lauterbach wrote that “Hopefully this is the beginning of the end for the black market today.” 

“The fight was worth it. Please use the new option responsibly.” — Lauterbach on X via Politico 

Ahead of the vote, opposition leader Friedrich Merz said his party plans to reverse the legislation if it wins national elections expected in fall of 2025, according to the AP. The measure also includes provisions to expunge previous criminal cannabis-related charges.

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