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Adult-Use Cannabis Constitutional Amendment Proposed in Arkansas

3/25/2024

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A constitutional amendment to legalize cannabis for adult use has been filed in Arkansas, the Arkansas Democrat-Gazette reports. The proposed ballot language was submitted to the state attorney general’s office last week for review. The attorney general has until April 2 to issue a response.

To get the question on November ballots, the petition will need 90,704 signatures submitted to the secretary of state by July 5.

Under the amendment, residents would be allowed to purchase up to four ounces of smokeable or vaporizable cannabis a day, cultivate up to 12 plants, and purchase “any quantity” of cannabis seeds or cannabis food and beverage products.

The measure would allow two classes of licenses: a Class A license, which “would permit the possession, cultivation, transport and sale of recreational marijuana plants and seeds” and a Class B license which “would permit the possession, cultivation, production, transport and sale of recreational marijuana plants, seeds, and permits the production and sale of produced from the plant,” according to the amendment’s ballot title outlined by the Democrat-Gazette. The licenses would require applicants to have resided in the state for at least three years and include a maximum $250 annual fee for a Class A license and a maximum $500 annual fee for a Class B license.

The proposal includes an 8% excise tax and 5% local sales tax and bans on sales within 1,500 feet of schools, churches, and daycare facilities.

Arkansas voters in 2022 rejected a similar proposal.

In February, Arkansas Attorney General Tim Griffin (R) approved a ballot initiative seeking to improve medical cannabis access in the state. That initiative includes a trigger law that would legalize adult-use cannabis were cannabis to be decriminalized federally.

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New York Waives Cannabis Cultivator License Fees for Two Years

3/25/2024

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The New York State Cannabis Control Board voted last week to award licenses to 114 new cannabis companies and waive all conditional cannabis cultivator licensing fees for the next two years. The waiver covers fees for dispensaries transitioning to non-conditional license types including cultivation businesses and microbusinesses, which can range from $4,500 to $40,000 depending on the license’s canopy size.

With the new licenses, there are now 88 licensed and operational dispensaries in New York, according to a press release from the office of Gov. Kathy Hochul (D).

“Farmers are the backbone of our State, and we’re making sure the family farms across New York that are building our cannabis industry have a real chance to succeed. I have made it clear that New York State needs to issue more dispensary licenses and kickstart cannabis sales in New York, and this two-year promise to Adult-Use Conditional Cultivators will make sure these farmers can reap the benefits of this growing industry.” — Hochul, in a statement

The governor has heavily critiqued the state’s adult-use cannabis roll-out and recently ordered an audit of the entire program, tasking a commissioner from the Office of General Services and other state officials to embed with cannabis industry regulators, identify ways to speed up the cannabis licensing process, and further optimize the Office of Cannabis Management (OCM).

Lawmakers in the state Senate recently allocated $128 million of the state budget to aid the state’s struggling cannabis growers with tax adjustments and financial support for farmers.

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California Could Reverse Cannabis Employment Protections for Law Enforcement

3/25/2024

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California lawmakers could roll back the state’s policy protecting legal, off-duty cannabis use for law enforcement-related positions following new amendments to legislation currently sitting before the Senate Rules Committee, Marijuana Moment reports.

Sponsored by state Sen. Shannon Grove (R), the newly amended SB 1264 seeks to remove protections for “employees in sworn or nonsworn positions within law enforcement agencies” who consume cannabis while off-duty.

Currently, state law prohibits most California employers from terminating, refusing to hire, or otherwise penalizing employees for off-duty cannabis consumption. The cannabis employment protections — which stem from an amendment to California’s Fair Employment and Housing Act that just took effect this year — already did not apply to workers “in the building and construction trades” nor applicants for federal positions that require clearance from the U.S. Department of Defense.

Specifically, the legislation carves away the cannabis protections for workers with the following law enforcement-related responsibilities, according to the report:

The apprehension, incarceration, or correction of criminal offenders.
Civil enforcement matters.
Dispatch and other public safety communications.
Evidence gathering and processing.
Law enforcement records.
Animal control.
Community services duties.
Public administrator or public guardian duties.
Coroner functions.

California voters opted to legalize cannabis for adult use in 2016 and the state’s adult-use industry launched in 2018; however, the state’s employment protection policies covering legal cannabis use were only signed into law in 2022 and 2023, the report said.

A recent survey by state officials found that 86% of Californians think that purchasing cannabis from legal sources is important, highlighting a growing preference for the regulated market over unregulated alternatives.

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Michigan Cannabis Processor Loses License Over Unregulated Products

3/22/2024

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Michigan regulators said this week that a Lansing-based cannabis processor is surrendering its medical and adult-use cannabis licenses after mixing illicit material into its products, the Lansing State Journal reports.

TAS Asset Holdings, also known as Noble Road Company, has been shut down since February 2023 after regulators suspended its license for using unregulated THCa powder to create its ‘Space Rocks’ product line under the Fwaygo Extracts brand. Officials confirmed in the report that the company’s license will never be renewed, reinstated, reissued, or reactivated — limited or otherwise.

“Based on its investigation of the conduct alleged in the complaint, the CRA determined at the time that the safety or health of patrons or employees was jeopardized by TAS’ continued operation and that emergency action was required.” — CRA statement, via the Lansing State Journal

During their investigation, CRA staff uncovered video evidence of employees bringing unregulated product from their vehicles into the business. Investigators found dirty and cluttered areas on the company’s premises including leaking containers of various stages of processed cannabis and waste. Additionally, officials noted the company was utilizing an unapproved, unlicensed warehouse without surveillance cameras, and none of the cannabis products in the room were registered with the industry’s track-and-trace program.

Michigan’s licensed dispensaries in 2023 crested $3 billion in sales and the Department of Treasury recently announced it is awarding over $87 million from cannabis tax revenues to local governments.

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Wisconsin-Based Tribal Group Prioritizes Medical Cannabis Legalization

3/22/2024

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The Indigenous Cannabis Industry Association (ICIA) and its member tribes have agreed to launch a lobbying and campaigning effort to pressure Wisconsin voters and lawmakers to legalize medical access to cannabis, the Milwaukee Journal Sentinel reports.

“Wisconsin is landlocked with a hypocrisy of prohibition,” ICIA founder Rob Pero said following the organization’s second annual Wisconsin Cannabis Industry and Policy Summit.

“The welfare of our communities are at stake while we wait for policy reform to provide clear access to cannabis for our communities in need, including Wisconsin’s veteran population, but also people of all ages who seek relief.” — Pero, via the Milwaukee Journal Sentinel

Wisconsin is one of the few remaining U.S. states where cannabis remains strictly prohibited, even for medical purposes. “There are people who need this medicine, regardless of political affiliation,” Pero said in the report.

The ICIA represents the Lac du Flambeau, St. Croix Ojibwe, and Sokaogon Mole Lake Ojibwe tribes in Wisconsin, and other tribes in Minnesota, Michigan, and South Dakota.

Wisconsin lawmakers this year considered a GOP proposal seeking to establish a heavily restricted medical cannabis program but the bill is likely dead for the year, the report said.

Meanwhile, a study published last year found that neighboring Illinois — where adult-use cannabis is legal and regulated — generated at least $36 million in cannabis tax revenue from Wisconsin residents in 2022.

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Study: Vape Pen Liquids from Legal and Illegal Markets Contain Nano-Sized Metals

3/21/2024

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Cannabis vape pen liquid in both legal and illegal markets contains nano-sized metals, including nickel, chromium, lead, zinc, and copper, according to a study conducted by researchers from Health Canada and the National Research Council of Canada.

The study included 41 samples of cannabis vape liquids – 20 legal, regulated samples from the Ontario Cannabis Store and 21 samples from the illicit market provided by the Ontario Provincial Police. The liquids were analyzed by mass spectrometry to look for the presence of 12 metals. High levels of nickel and zinc were found in the illegal samples, while the legal samples contained the highest levels of copper content.

In a statement, Dr. Zuzana Gajdosechova, a scientist involved in the study, said there are potential health risks associated with nano-sized metal particles, which can be highly reactive and harmful when inhaled.

“The evidence strongly suggests that metal contamination can come from the device when it’s produced, and not from the heating of the coils. But depending on the quality of the device, the contamination may be increased by that heating.” — Gajdosechova, in a statement, via the American Chemical Society

While some metals, such as arsenic, mercury, and cadmium, were within the generally accepted tolerance limits for cannabis products, others were detected in very high concentrations, including lead. Some of the vapes from illegal sources sampled contained 100 times more lead than the regulated samples, far exceeding the generally accepted tolerance limit, according to the study.

The researchers suggest that further research on vape devices is needed “to better understand the composition of the metal parts of the devices as well as other factors that promote leaching of metals into the liquids” and that “making more information about the metal components of vape device available along with the filling date of the vape device can help support and inform additional research studies and risk assessments.”

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South Dakota Gov. Signs Bills to Ban Intoxicating Hemp & Allow Cops to Search Medical Cannabis Businesses

3/20/2024

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South Dakota Gov. Kristi Noem (R) this week signed two bills aimed at the medical cannabis and intoxicating hemp industries in the state.

Noem on Monday signed a bill that removes the prohibition on the ability of law enforcement and other government agencies to “search, seize, prosecute, or impose disciplinary action” on the state’s medical cannabis businesses. The bill passed the Senate 26-7 in January and 59-10 last month. The provisions included in the law protecting dispensaries, cultivators, manufacturers, and testing laboratories were included in the voter-backed law in 2022.

The bill takes effect July 1.

On Tuesday, Noem signed legislation prohibiting the “chemical modification or conversion of industrial hemp and the sale or distribution of chemically modified or converted industrial hemp” effectively outlawing intoxicating hemp-derived products. Under the law, it is now illegal to “modify or convert industrial hemp … or engage in any process that converts” CBD into delta-8 THC, delta-9 THC, or delta-10 THC, or any other THC isomer, analog, or derivative. The measure unanimously passed the House in January and was nearly unanimous in the Senate last month, with only one lawmaker, Republican Majority Whip Ryan Maher, voting against the measure.

The bill includes penalties of up to one year in jail, a $2,000 fine, or both.

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Survey: 72% of Canadian Cannabis Consumers Buy From Legal Sources

3/20/2024

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Almost three-quarters of legal cannabis consumers (71.7%) in Canada say they purchase products exclusively from the regulated marketplace, according to a national survey published on March 18.

Recipients listed the following primary reasons for their decision to utilize the legal market:

38% said they buy legal due to concerns about product safety,
16.9% said the legal market was more convenient,
and 12.9% said they wanted to follow the law.

The survey found that the most commonly used product types in the previous year were dried cannabis flower (62.1%) followed by infused edibles (57.1%). Notably, cannabis vape pens and cartridges were more popular among younger cannabis consumers while infused topicals and oral cannabis oils were more popular among older consumers, the pollsters wrote. Among consumers aged 25 or older, cannabis flower products were more commonly used by men (70.2%) than women (48.4%).

Additionally, the survey found that more than one-third of people aged 18-24 (38.4%) and 25-44 (34.5%) reported having used cannabis at least once in the 12 months leading up to the survey, compared to just 15.5% of adults aged 45+.

Canada legalized adult-use cannabis in 2018 and was one of the very first countries in the world to undo cannabis prohibition at the federal level.

According to a recent report, licensed cannabis companies in Canada have destroyed 3.7 million pounds of cannabis since the legal market launched, largely due to the products being too old or low-quality.

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New York Gov. Orders Audit of Cannabis Industry Program

3/20/2024

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New York Gov. Kathy Hochul (D) has ordered a top-down review of the state’s adult-use cannabis program amid rampant unlicensed sales and multi-month delays to the industry, the Associated Press reports.

For the review, the governor has tasked Office of General Services (OGS) Commissioner Jeanette Moy and other state officials to embed with cannabis industry regulators and identify ways to speed up cannabis licensing and further optimize the Office of Cannabis Management (OCM).

New York legalized cannabis for adults aged 21 and older in 2021 but at the end of 2022, just 80 companies had launched in the state, the report said. The cannabis licensing process faced numerous delays due to a series of lawsuits targeting the industry’s social equity licensing provisions.

“We have built a cannabis market based on equity, and there is a lot to be proud of. At the same time, there is more we can do to improve OCM’s operations and we know Commissioner Moy, a proven leader in government, will help us get where we need to be.” — Chris Alexander, OCM Executive Director, via the AP

Hochul previously labeled the industry’s roll-out a “disaster,” critiquing the slow launch for benefiting unregulated retailers and hamstringing legal operators.

Meanwhile, state officials last month approved new cannabis home grow rules — the provisions, which are currently undergoing a 60-day public comment period, would allow adults to grow up to six mature and six immature cannabis plants at their home.

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New York Senate Budget Includes $128M to Support Cannabis Farmers

3/18/2024

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The New York Senate last week approved a one-house budget that includes $128 million to support the state’s cannabis industry. The budget includes $60 million for cannabis farmer loans, $40 million for grants through a new Cannabis Farmer Relief Fund, and $28 million for refundable tax credits for cannabis farmers who lost money due to the state’s slow market rollout.

The budget also includes a proposal backed by Gov. Kathy Hochul (D) to replace the state’s potency tax on cannabis products with the phase-in of a permanent rate for the new wholesale tax and a repeal of the tax on medical cannabis products.

On the Senate floor, state Sen. George Borrello (R) said that he thinks lawmakers agree that the state’s cannabis industry rollout “has been an abject failure.”

“We are now three years into where we have passed the legalization of recreational marijuana in New york state – three years now this month. We are now proposing a bailout for pot farmers of $128 million. … Somehow New York state has managed to screw up pot. I don’t know how that happens, but we did.” — Borrello via The Post-Journal

Last year Hochul vetoed a bill that would have allowed New York cannabis farmers to sell directly to tribal retailers – many of which began operating shortly after the passage of the state law. In her veto message, Hochul said the proposal provided “too few parameters in terms of sales to the Tribal Nations” and “minimal overall protections for cultivators and processors or guarantees for sales in terms of quantity.” Hochul said the issues could “best be addressed through a negotiated agreement with Tribal Nations,” rather than the legislation.

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Study: 11.4% of US 12th Graders Used Delta-8 THC Products in 2023

3/18/2024

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A study published this month in the journal JAMA found 11.4% of 2,186 U.S. 12th-grade students self-reported consuming delta-8 THC products in the past year, while 30.4% self-reported consuming traditional delta-9 THC products.

Delta-8 products were more commonly consumed in southern and Midwest states that have not legalized delta-9 products for adult use, while the consumption of delta-9 products did not differ by cannabis policies.

The study included 12th graders from 27 states who participated in the Monitoring the Future Study in-school survey from February to June 2023.

Delta-8 is most often created from federally legal hemp plants by converting CBD to the THC compound through a process known as isomerization.

Of the 295 participants who reported delta-8 THC use, 35.4% used it at least 10 times in the past 12 months. The researchers found prevalence of delta-8 use was lower in Western versus Southern census regions (5.0% vs 14.3%), states where delta-8 was regulated versus unregulated (5.7% vs 14.4%), and in states with versus without legal adult-use marijuana (8.0% vs 14.0%). Past 12-month use of delta-8 THC products was also lower among Hispanic than White participants (7.3% vs 14.4%).

In a subsequent editorial published in JAMA related to the study, the authors – Jennifer M. Whitehill, PhD; Kelly E. Dunn, PhD, MBA; Renee M. Johnson, PhD – said the “study is a reminder that there is a diverse set of cannabis products on the market that vary in their legal and regulatory status and potential for harm.”

“[Delta-8] THC is a psychoactive cannabinoid that can be derived from hemp. It was introduced to the retail market in 2018 and there are indications that its use is on the rise,” the authors wrote. “There is little regulatory oversight of production and sales of Δ8-THC and some evidence of adverse outcomes after use.”

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Arizona AG Says Delta-8 Products Can Only Be Sold By Licensed Dispensaries

3/18/2024

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In an opinion issued last week, Arizona Attorney General Kris Mayes said that the sale of delta-8 THC products and “other hemp-synthesized intoxicants” by businesses not licensed by the state health department are not permitted to be sold under state law.

“Irrespective of delta-8’s arguable federal legality under the 2018 Agriculture Improvement Act (‘Farm Bill’), Arizona continues to define and regulate ‘industrial hemp’ in a manner that precludes the sale of hemp-synthesized intoxicants in convenience stores, smoke shops, and other unlicensed locales.” — Mayes in the Mar. 11, 2024 opinion

In the opinion, Mayes notes that the Farm Bill “is silent” on delta-8 THC products. But because the cannabinoid occurs naturally in hemp plants, albeit in low concentration, proponents argue that the federal legislation legalized delta-8 and other intoxicating cannabinoids found in hemp – and a 2022 Ninth District court ruling supports that argument. The Drug Enforcement Administration (DEA), however, considers delta-8 an illegal drug listed under Schedule I of the federal Controlled Substances Act, the opinion states, and Arizona, too, lists delta-8 as a Schedule I controlled substance.

In the opinion, Mayes says that delta-8 products fall under the purview of the state’s adult-use cannabis legalization law and that businesses selling the products must be licensed by the health department in the same way as dispensaries and delta-8 products cannot be sold outside of state-licensed dispensaries.

“Delta-8 is an intoxicating hemp-synthesized cannabinoid with a chemical profile and psychoactive effect materially similar to that of marijuana,” Mayes wrote. “Intoxicating cannabis products are Schedule 1 controlled substances that may be sold only by licensed cannabis sellers in Arizona. Arizona’s 2018 industrial hemp law did not create an exception to these laws. … Delta-8’s sale by unlicensed entities like convenience stores and smoke shops is therefore unlawful.”

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Wyoming Gov. Signs Bill to Ban Delta-8 THC

3/18/2024

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Wyoming Gov. Mark Gordon (R) has signed into law the state’s ban on delta-8 THC products, putting the state’s burgeoning hemp-derived cannabinoid industry into jeopardy, MJBizDaily reports.

According to Senate File 32, which lawmakers crafted to restrict the sale of intoxicating cannabinoids:

No person or licensee shall:
– Produce, process or sell hemp or hemp products containing more than three‑tenths of one percent (0.3%) THC on a dry weight basis when using post‑decarboxylation or another similarly reliable testing method;
– Add, alter, insert or otherwise include any synthetic substance into hemp or hemp products produced, processed or sold in accordance with this chapter.

Under the new rules, which take effect on July 1, officials will conduct chemical analysis inspections of hemp product retailers’ offerings to ensure they are legal.

Wyoming hemp retailers say the changes will put many companies out of business. Some are even worried that the law could jeopardize the sale of some CBD products in the state, which are non-intoxicating and utilized by millions for therapeutic purposes.

The market for hemp-derived delta-8 THC products has ballooned under the 2018 Farm Bill, which legalized industrial hemp and its byproducts nationwide. Delta-8 products are typically made by converting hemp-derived CBD and other cannabinoids into delta-8 THC.

Wyoming’s ban comes just days after the Arizona attorney general ruled that delta-8 sales are illegal, the report said.

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Kamala Harris Calls Current Federal Cannabis Policy ‘Absurd’

3/17/2024

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Vice President Kamala Harris (D) said on Friday that it’s “absurd” and “patently unfair” to rank cannabis above fentanyl and alongside heroin at Schedule I under the Controlled Substances Act (CSA), according to a CNN report.

The vice president made the statement during a roundtable discussion covering the Biden Administration’s latest cannabis reform efforts. Moderated by musician and philanthropist Fat Joe, the discussion included Kentucky Gov. Andy Beshear (D) — who last year announced the pardoning of low-level cannabis possession charges — and a group of individuals who have received cannabis pardons.

“Marijuana is considered as dangerous as heroin and more dangerous than fentanyl, which is absurd, not to mention patently unfair. I’m sure DEA is working as quickly as possible and will continue to do so and we look forward to the product of their work.” — Harris, during the roundtable discussion

Harris, who started in politics as a prosecutor in California, also said that the criminal justice system has “failed” on its promise of “equal justice under the law.”

“And I say that with full knowledge of how this system has worked, including my experience as a prosecutor,” she said in the report.

The Department of Health and Human Services (HHS) last year recommended the federal government move cannabis from Schedule I to Schedule III. The federal Drug Enforcement Administration (DEA) has since claimed to have the final say on any scheduling action, and some insiders have reported pushback against the rescheduling plan from the federal enforcement agency.

In the meantime, President Joe Biden (D) has pardoned federal cannabis possession charges but those are just a drop in the bucket of overall cannabis convictions in the U.S. The president, however, did call on state governors to issue sweeping cannabis pardons.

Massachusetts Gov. Maura Healey (D) said last week she would pardon all of the state’s misdemeanor cannabis possession convictions.

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Hawaii House Lawmakers Advance Cannabis Sales Bill

3/15/2024

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Hawaii House lawmakers in two key committees this week voted to advance the Senate-passed cannabis legalization bill, Marijuana Moment reports.

The proposal passed the Judiciary and Hawaiian Affairs Committee 7-3 and the Agriculture and Food Systems Committee 5-1. The bill seeks to legalize adult-use cannabis possession starting January 1, 2026, and would regulate the cultivation, manufacturing, and distribution of cannabis products.

The House amendments so far include reducing the penalty for selling cannabis to a minor from a felony to a misdemeanor, loosening the “open container” language for possessing cannabis products in vehicles, and other changes addressing some of the concerns expressed about the proposal, the report said.

According to comments offered by the ACLU of Hawaii, the legalization proposal “includes provisions that will likely increase criminal convictions and incarceration for conduct that does not jeopardize public safety.” The advocates also noted that the draft “falls short” in terms of social equity and reparative justice.

Sponsored by Rep. David Tarnas (D) in the House, the bill closely resembles a legalization proposal put forward last year by state Attorney General Anne Lopez (D).

“I am really trying to follow the lead of the attorney general to come up with a balanced, reasonable and moderate bill that protects public safety and public health, and basically sets up a regulatory framework so that we can have an adult-use cannabis industry that will function well and is fair and reasonable.” — Tarnas (D), via Marijuana Moment

Senate lawmakers already voted 19-6 in favor of the proposal.

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Connecticut House Committee Approves Bill to Allow Broader Cannabis Industry Enforcement

3/15/2024

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The Connecticut General Law Committee on Tuesday approved a bill that would allow the state attorney general and local law enforcement to penalize and close shops that illegally sell THC products, CT Insider reports. The measure would also require mold and yeast exposure in cannabis products and limit the sale of THC-infused beverages to package stores, which sell beer and liquor in the state.

Rep. Mike D’Agostino (D) told CT Insider that the bill’s THC restrictions will likely change before it’s brought up for debate on the House floor.

“Right now the bill says up to two-and-a-half percent THC per container. Only sold at liquor stores, not sold at restaurants, not sold at convenience stores, not sold anywhere else.” — D’Agostino, during the committee session, via CT Insider

The measure would also allow licensed cultivators to step down to smaller micro-cultivation projects and partner with existing hemp farmers, in an effort to address the flower undersupply issue that has emerged in the 15-month-old program.

State Sen. Christine Cohen (D) told CT Insider that hemp farmers have struggled in the state, particularly since the broad legalization of cannabis. Under the measure, hemp products that contain very low amounts of THC would also be subjected to new age restrictions and testing requirements. Last session, a bill to allow hemp farmers to join the adult-use market failed in the Legislature.

The bill moves next to the House floor.

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Cleveland School of Cannabis First Cannabis College in the Country to Receive Accreditation

3/15/2024

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The Cleveland School of Cannabis has been recognized by the U.S. Department of Education, becoming the first cannabis-focused school in the U.S. to receive accreditation from the Middle States Association-Commissions on Elementary and Secondary Schools (MSA-CESS).

The decision was made in December but the college made the official announcement last week.

In a press release, the college said it has already graduated more than 1,100 students.

“This formal recognition could pave the way for further advancements in cannabis research, education, and professional development, bridging the gap between the burgeoning cannabis market and academic legitimacy.” — Cleveland School of Cannabis in a press release

The college notes that the accreditation comes amidst an expansion, having recently moved into a new building with a hands-on cultivation laboratory, processing lab, kitchen, mock dispensary, and virtual reality lab. The VR lab is meant to bring all of the college’s experiences to its online student population through VR and gaming engines, the college said.

A spokesperson for the U.S. Department of Education told The Repository that the agency recognizes accrediting agencies as part of the criteria for financial aid, it does not mean the college is eligible to participate in such programs and “is not approved by the Department to participate in Title IV or other programs under the Higher Education Act.”

Cleveland School of Cannabis President Tyrone Russell said he hopes the accreditation will lead to financial aid availability for students in the future.

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Biden Budget Includes Rider Blocking D.C. Cannabis Sales, Again

3/14/2024

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The Biden Administration has again included a rider in the president’s budget released this week that will prevent Washington D.C. from dedicating funds toward implementing its voter-approved adult-use cannabis marketplace.

The rider was first proposed by U.S. Rep. Andy Harris (R-MD) in 2014 following the District’s overwhelming approval of Initiative 71, which legalized cannabis possession and cultivation for adults. The proposal also calls for local officials to license and regulate an adult-use cannabis industry — but Congress, which has the final say on the Washington D.C. budget, agreed to the rider blocking the initiative’s sales provision and has continued to do so throughout the nearly ten years since voters passed the local cannabis legalization policy.

Democratic lawmakers have previously sought to remove the rider the but provision has always returned following bipartisan and bicameral discussion.

D.C. officials have stated they would move swiftly to enact a regulated cannabis marketplace if allowed. In the meantime, the city’s unregulated cannabis market has thrived.

In aiming to increase access to regulated cannabis products, officials recently adjusted the local medical cannabis regulations so that any D.C. resident aged 21+ can self-certify for the program and immediately shop at licensed retailers.

Adults in Washington D.C. are allowed to possess up to two ounces of cannabis flower and can grow up to six cannabis plants in their private residences.

A recent Gallup poll found that 70% of Americans support legalizing cannabis.

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Oregon Lawmakers Pass Bill to Cap Cannabis Licenses

3/14/2024

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The Oregon Legislature last week passed a bill to cap the number of cannabis licenses in the state – an attempt to mitigate oversaturation in the state’s industry. According to the staff member summary, the bill would cap production and retail licenses at one each per 7,500 residents 21-and-older, and at 12,500 per resident 21-and-older for processor and wholesale licenses.

The legislation comes as Oregon’s legal cannabis market experienced a decline last year to $955 million in sales. The market had peaked in 2021 with $1.2 billion in sales. Retail cannabis prices in 2023 fell to $4 per gram.

The measure would also allow inter-agency cooperation for inspections and enforcement of industrial hemp operations, including allowing for National Guard assistance to support the Oregon Department of Agriculture (ODA) and law enforcement in inspections and enforcement of industrial hemp laws.

Additionally, the bill directs the Oregon Liquor and Cannabis Commission OLCC, in consultation with ODA, to create a map of locations of premises licensed to produce cannabis or industrial hemp and Allows law enforcement agencies to accompany the department to industrial hemp operations throughout the state. It also directs the commission to establish a registration system for industrial hemp products that contain cannabinoids and are intended for human or animal consumption or use and establishes a civil penalty up to $10,000 for each registration violation.

The bill also directs the OLCC to establish uniform standards for minor decoy operations to investigate the sale of cannabis products to individuals under 21.

If signed into law by Gov. Tina Kotek (D), most of the measure’s provisions take effect January 1, 2025, while the registration system to industrial hemp would take effect January 1, 2026.

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Massachusetts Gov. Issues Sweeping Cannabis Possession Pardons

3/14/2024

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Massachusetts Gov. Maura Healey (D) announced Wednesday she is moving to pardon all misdemeanor cannabis possession convictions issued by the state; the pardon action first requires approval from the Governor’s Council, then will take immediate effect.

The pardons will cover all Massachusetts misdemeanor cannabis convictions before March 13, 2024.

Most people will not need to take any action for the pardons to take effect, the governor said.

“Massachusetts decriminalized possession for personal use back in 2008, legalized it in 2016, yet thousands of people are still living with a conviction on their records – a conviction that may be a barrier to jobs, getting housing, even getting an education.” — Healey, via the Associated Press

“Nobody should face barriers to getting a job, housing or an education because of an old misdemeanor marijuana conviction that they would not be charged for today,” Healey said in a press release. “We’re taking this nation-leading action as part of our commitment to using the clemency process to advance fairness and equity in our criminal justice system.”

President Biden (D) in 2022 pardoned all low-level federal cannabis possession convictions; notably, Biden’s presidential pardons did not lead to the release of anyone serving prison time for a cannabis conviction. The president also called on governors to take similar action at the state level, and he awarded additional pardons late last year.

“We’re grateful for President Biden’s leadership on this at the federal level and proud to answer his call to take action in the states,” Gov. Healey said.

Healey’s pardoning action is supported by Attorney General Andrea Joy Campbell, House Speaker Ronald J. Mariano (D), and Senate President Karen E. Spilka (D).

The Massachusetts state government hosts an FAQ for additional details.

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Minnesota Sets New Hemp Flower Regulations After Samples Test Over Limit

3/12/2024

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Minnesota cannabis regulators have unveiled new regulations on the sale of hemp flower products, MinnPost reports.

The rules were set on Thursday by the Office of Cannabis Management. The agency’s interim director Charlene Briner described the effort as an an “interagency agreement” that will include contracting a private testing lab.

The new rules come after products purchased from a Twin Cities hemp retailer tested at 29.99% total THC, including 1.1% delta-9 THC, which is more than three times the legal delta-9 THC limit, the report said.

“We are starting to contact retailers as we speak to talk about inspections,” Briner said.

“The Office of Cannabis Management has received complaints of retailers selling cannabis flower under the label of hemp flower. Under an agreement between The Minnesota Department of Health (MDH) and OCM, inspectors from MDH will begin to examine any flower products being sold during their regular inspections to determine whether they are indeed hemp flower or cannabis flower.” — Excerpt from memo sent to hemp retailers

Minnesota legalized adult-use cannabis possession and consumption in August 2023 but the state’s regulated cannabis marketplace has yet to launch. Lawmakers had previously legalized the sale of low-dose cannabis edibles and other products, and the hemp products described in the report were purchased under that limited market.

Officials said last year they expect the state’s regulated adult-use market to launch sometime in 2025 but Briner recently conceded that she wasn’t certain about the timeline.

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Ohio Bill Would Fund Replacing Drug Dogs After Legalization

3/12/2024

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Ohio lawmakers are considering legislation to provide funds for retiring hundreds of K9 officers in the state after voters passed a cannabis legalization initiative last year, the Associated Press reports.

The bill aims to address a common issue faced by states that decriminalize or legalize adult-use cannabis, as police dogs cannot be simply “un-trained” after being taught to detect and alert for a certain odor.

House Bill 396 is primarily sponsored by Reps. Sean P. Brennan (D) and Josh Williams (R) but also counts dozens of other lawmakers in the Ohio House of Representatives as co-sponsors. The bipartisan bill proposes offsetting the costs of replacing and retiring drug-detection K9s by using some of the state’s adult-use cannabis tax revenue; police departments would be able to apply for grants of up to $20,000 per K9 that needs replacing.

“The fact that we’re now going to need 300 canines, like overnight in Ohio, the demand for dogs and for training is going to be at a premium.” — Rep. Brennan, via the Associated Press

The cost of acquiring and training a new drug-detection dog can easily reach up to $20,000, former K9 handler for the North College Hill Police Jay Manning said in a WCPO report. With the state’s new legalization policy, some K9 officers will be able to retire but many will need to either be re-homed or moved to another state where they can continue working, the report said.

Ohio Gov. Mike DeWine (R) recently urged lawmakers to let the state’s medical cannabis dispensaries begin catering to adult-use customers after the voter-approved legalization policy took effect.

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Maryland to Hold Social Equity Lottery for Cannabis Licenses Despite Lawsuits

3/12/2024

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

The Maryland Cannabis Administration (MCA) announced last week that the lottery drawings for social equity cannabis licenses will be held on Thursday, Mar. 14, 2024. This is the first opportunity for new businesses to get adult-use licenses since legalization last summer.

The lottery comes after a two and half month delay. It was supposed to be held at the beginning of the year. This first wave of the lottery aims to create opportunities for those disproportionately impacted by the war on drugs to participate in the state’s expanding cannabis industry.

Up to 179 applicants will be selected from a pool of over 1,500 who meet the social equity requirements. These applications represent various license types, including standard and micro dispensaries, growers and processors.

“We know businesses are excited to join this growing industry and wish all the qualified social equity applicants good luck in the drawings,” said Maryland Cannabis Administration Director Will Tilburg.

The lottery continues despite a lawsuit challenging social equity and another claiming technical difficulties blocked entry. The lottery will be held live on MCA’s website. Additionally, an independent firm will oversee the process.

The program prioritizes minority- and women-owned businesses. Notably, 84% of the qualifying applications identified as such. “This is a significant step towards creating a more inclusive cannabis industry in Maryland,” Tilburg added.

Following the lottery, selected applicants will undergo a verification process to ensure they meet social equity ownership requirements. Winners will be notified about this next step.

For more information on the social equity program and the lottery, visit the Maryland Cannabis Administration website at: https://mmcc.maryland.gov/Pages/home.aspx.

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Oregon State Global Hemp Innovation Centers Nets $10M Grant to Partner with Tribes on Hemp Economic Development

3/12/2024

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Oregon State University’s Global Hemp Innovation Center announced on Monday it received a $10 million grant to work with 13 Native American tribes for hemp economic development. The project is funded by the U.S. Department of Agriculture’s (USDA) National Institute of Food and Agriculture (NIFA) and seeks to develop sustainable supply chains based on the needs identified by an intertribal business consortium in an effort to link regional hemp production, processing, and manufacturing to create hemp products.

In a statement, Jeffrey Steiner, director of the Global Hemp Innovation Center, said that “there is still significant interest and potential in industrial uses of hemp” despite the production of hemp dropping off significantly throughout the U.S. by 2020. Interest in the industry, and subsequent planting of hemp, had surged following the passage of the 2018 Farm Bill.

“But it’s critical that investment decisions be based on sound science and business planning to build out and scale up economic development opportunities with hemp, particularly to benefit Tribal nations and other American rural communities.” — Steiner in a press release

The project goals, according to the outline submitted to the NIFA, are to “provide tribal leaders, financial decision-makers, policymakers, federal agency service providers, regulators, and technology providers with the business and science information needed to evaluate the merits of investing in a hemp-based bioeconomy on reservations and across the region.”

The outline adds that the project will address multiple supply chain components, including “field-to-harvest-to-processing-to-biobased manufacturing facilities, and identify opportunities to increase system efficiencies towards improved triple-bottom-line performances of materials and products manufactured from industrial hemp.”

The 13 tribes partnering with Oregon State come from within the geographical boundaries of Oregon, Washington, Idaho, Nevada, Montana, and California, along with the University of California Davis, University of Nevada, Reno, and Washington State University; Stone Child College; College of the Redwoods, which are U.S. land grant universities. The partnership also includes the USDA Agricultural Research Service, 7 Generations LLC, the Indigenous Habitat Institute, the Intertribal Agriculture Council, and hemp and other bio-based product manufactures and businesses.

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