Ukraine President Signs Medical Cannabis Legalization Bill

2/16/2024

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Ukrainian President Volodymyr Zelensky signed the country’s medical cannabis legalization bill into law on Thursday, according to a Reuters report.

With the president’s signature, the country’s national medical cannabis program is set to launch in about six months, with draft regulations for the program expected within about three months.

The bill specifically legalizes medical cannabis access for people suffering from cancer and post-traumatic stress disorder (PTSD) resulting from the country’s defense against the ongoing military invasion by Russia, but lawmakers previously said they were being pressured to include other conditions including Alzheimer’s disease and epilepsy. The Ministry of Health of Ukraine — which backed the proposal — will be able to specify other debilitating diseases and conditions for which cannabis could be prescribed, the report said.

The new law requires patients to be prescribed medical cannabis by a doctor, and adult-use cannabis will remain strictly prohibited. Medical cannabis production and manufacturing in Ukraine will require special licenses; additionally, the law will allow for the import of cannabis products including raw materials.

Zelensky, who called for the legalization of medical cannabis during his 2019 presidential election campaign, had praised the bill.

Numerous studies have found cannabis to be an effective treatment option for patients suffering from PTSD and, in the U.S., the vast majority of state-legal medical cannabis programs allow patients with PTSD to access the program, according to the Marijuana Policy Project.

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Georgia Files $150M Lawsuit Over Intoxicating Hemp Product Sales

2/15/2024

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A federal racketeering lawsuit has been filed in Georgia against leading California cannabis brands STIIIZY and Cookies, along with 12 other co-conspirators, for allegedly selling marijuana products mislabeled as federally-legal delta-8 hemp goods. The lawsuit, seeking at least $150 million in damages, was reported by Green Market Report, which obtained a copy of the legal filing.

The class action suit accuses the defendants of misleading consumers, including Georgia resident Hannah Ledbetter, into purchasing marijuana products under the guise of them being legal hemp products containing 0.3% delta-9 THC or less, the federal threshold for hemp.

The lawsuit alleges that the defendants engaged in a pattern of racketeering activity to import, manufacture, distribute, and possess illegal THC vape pens labeled as hemp. It claims that products purchased by Ledbetter from multiple retail chains in Georgia contained delta-9 THC levels far above the legal limit, according to third-party testing.

The suit implicates a wide range of entities in the scheme, including retail chains, hemp manufacturers, distributors, and testing labs in California and Oregon accused of issuing falsified certificates of analysis to mask the true THC content of the products.

STIIIZY and Cookies, along with other defendants including retail and online outlets and testing laboratories, are accused of generating millions in fraudulent profit from the sale of these illegal products.

In a statement to Green Market Report, a STIIIZY representative dismissed the lawsuit as baseless and said the company intends to defend itself vigorously. Cookies representatives declined to comment due to the pending litigation. The lawsuit underscores the complexities and legal challenges in the cannabis industry, especially concerning the blurred lines between legal hemp and illegal marijuana products following the federal legalization of hemp in the 2018 Farm Bill.

Last August, California filed a similar lawsuit against several brands selling intoxicating “inhalable hemp products” without a cannabis license within the state.

Many other states have recently moved to bring hemp products under the regulatory control of their respective cannabis enforcement bodies, amid concerns about the issues of consumer deception and safety due to the lack of testing requirements for hemp products. Companies manufacturing these products, as well as licensed cannabis business owners who view intoxicating hemp brands as illegitimate competition, will undoubtedly be awaiting the results of these lawsuits with much anticipation as they are set to test the legal boundaries of cannabis sales and marketing in the United States.

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Thai Government Could Face ‘Thousands’ of Lawsuits Over Cannabis Policy Reversal

2/15/2024

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As Thailand’s government considers rolling back its historic cannabis decriminalization reforms from two years ago, industry insiders say that cannabis entrepreneurs and operators in the country are readying lawsuits to protect their livelihoods, This Week in Asia reports.

The litigation threat comes after Thailand’s health minister rolled out legislation earlier this year that would effectively outlaw recreational cannabis consumption — implementing strict criminal penalties and banning cannabis products with a THC level above 0.2% — and aims to refocus the country’s reforms around medical use only.

The new Cannabis and Hemp Act has yet to be considered by lawmakers, who chose not to address the issue during their weekly meeting on Tuesday, the report said. But cannabis operators and investors are certainly concerned about the proposal: “Everyone is talking to lawyers,” cannabis dispensary owner Soranut “Beer” Masayavanich told This Week in Asia.

Benjamin Baskins, CEO of OG Cannab, which operates multiple dispensaries in high-tourism areas of Bangkok, said he expects lawmakers would need to make significant changes to the proposal if it were to move forward. “It’s hard to even take seriously,” he said.

“They’re going to have so many lawsuits. How are they going to deal with 7,000 lawsuits from dispensaries, and thousands more from growers?” — Baskins, via This Week in Asia

Cannabis advocates argue that lawmakers should seek to make changes to the proposal that recognize and regulate — rather than eliminate — the country’s nascent but booming cannabis industry.

The University of the Thai Chamber of Commerce estimated that Thailand‘s cannabis industry was worth nearly USD$800 million by the end of 2022 — only six months after the country’s decriminalization policy took effect — and could reach USD$1.2 billion by 2025, the report said.

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South Carolina Senate Votes to Legalize Medical Cannabis

2/15/2024

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South Carolina’s Senate voted this week to legalize medical cannabis access for people diagnosed with specific debilitating illnesses, the Post and Courier reports.

Sponsored by state Sen. Tom Davis (R), the Compassionate Care Act of 2024 closely resembles a 2022 proposal that passed the Senate but was ultimately defeated in the lower chamber. House lawmakers are expected to once again represent a major obstacle for the medical cannabis reforms.

Davis has described the bill as the country’s “most conservative” approach to medical cannabis, the report said. Only people suffering from debilitating or terminal conditions including cancer, colitis, sickle cell anemia, or severe neurological diseases like epilepsy would be allowed to access the program laid out in the proposal. Additionally, smokeable flower products would not be allowed; rather, patients would have access to unflavored edibles, tinctures, and vaporizers.

Cannabis production and dispensing would be closely regulated, with state-issued medical cannabis production and manufacturing licenses. Additionally, only licensed pharmacists would be allowed to dispense cannabis products.

Davis says the bill is specifically structured to avoid the perceived notion that medical cannabis legalization is a stepping stone for broader, adult-use reforms. Cannabis consumption without a prescription would still be considered a felony under the proposal, and the program — if approved in its current form — would automatically end after five years unless lawmakers take action to renew it.

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U.S. Virgin Islands

U.S. Virgin Islands Approves Long-Awaited Cannabis Legalization Plan

2/14/2024

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Officials in the U.S. Virgin Islands have approved a list of rules and regulations governing adult cannabis access in the territory, the Associated Press reports.

Lawmakers approved the legalization policy last January but its implementation has stalled until this point. “We have been waiting a very long time for this,” said Dr. Catherine Kean, chairperson for the advisory board which passed the regulations on Tuesday.

Next, there will be a 30-day window for public feedback on the proposed rules.

Additionally, officials say they are finalizing the list of people who are qualified to have their cannabis-related criminal records expunged under the territory’s legalization policy. About 300 people were convicted for cannabis possession in the U.S. Virgin Islands over the last 20 years, the report said.

Under the adult-use law, adults aged 21+ are allowed to possess up to two ounces of cannabis, a half-ounce of cannabis concentrates, and up to one ounce of cannabis-infused edibles. Dispensary sales will be taxed a minimum of 18% with three-fourths of cannabis tax revenue reserved for the general fund including specific carveouts for behavioral health programs, youth programs, and addressing the housing crisis.

Hannah Carty, Executive Director of the Virgin Islands Cannabis Board, predicts in the report that cannabis entrepreneurs will be able to start the registration process this summer but that cultivation and manufacturing licenses will not arrive before next year.

The delays are sadly nothing new for cannabis advocates in the island territory, where medical cannabis was legalized in 2019 and yet a functional program has yet to be realized.

Cannabis possession of up to an ounce has been decriminalized in the U.S. Virgin Islands.

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Idaho Lawmakers Propose $420 Fine for Cannabis Possession

2/14/2024

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People caught possessing small quantities of cannabis in Idaho could face a mandatory $420 fine under a proposal introduced this week in the House State Affairs Committee, the Idaho Press reports.

Proposed by Rep. Bruce Skaug (R), the fine would apply to cannabis possession cases for any amount less than three ounces.

Idaho is one of three U.S. states — the others being Kansas and Nebraska — that have maintained an absolute prohibition on cannabis with no exceptions, not even for medicinal use or low-level possession cases. Meanwhile, cannabis is legal for adults in the majority of Idaho’s neighboring states, including Washington, Oregon, Nevada, and Montana, as well as across its northernmost border with Canada.

The bill mandating the $420 fine for low-level possession cases was formally introduced to the committee this week, meaning the proposal could be brought back for a public hearing, the report said.

Current Idaho law considers the possession of three ounces or less of cannabis a misdemeanor carrying penalties of up to one year imprisonment and/or a fine of up to $1,000. For possession cases between three ounces and one pound, it is a felony crime punishable by up to five years imprisonment and/or up to $10,000 in fines, and the penalties increase dramatically for cannabis trafficking felonies.

Another proposal introduced in the state last week is seeking to ban advertisements for illegal products after lawmakers witnessed billboards and newspaper advertisements in Idaho for out-of-state cannabis products.

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George Jage: Maximizing Value for Cannabis Trade Show Attendees & Exhibitors

2/13/2024

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In this insightful Q&A, we sit down with George Jage, co-founder of Jage Media and one of the organizers behind the popular cannabis trade show event, MJ Unpacked, coming to Atlantic City, New Jersey, this April. Having been organizing cannabis industry events for nearly a decade, George is at the forefront of convening cannabis entrepreneurs and investors, and has been navigating the complex landscape long before the ink dried on today’s regulatory frameworks. George also has a seasoned background in fundraising and a knack for fostering environments ripe for growth and collaboration. In this interview, George joins us to discuss:

  • The evolution of the cannabis industry from its early, unregulated days to the current environment.
  • How MJ Unpacked provides unique value as an event exclusively attended by license holders, applicants, investors, and other qualified guests.
  • How license holders and applicants can maximize the value of their attendance if they’re seeking investor financing.
  • What prospects and challenges for the cannabis industry lie ahead going into 2024.

Read the full interview below!

You have been coordinating gatherings for cannabis entrepreneurs and investors since before most of the current regulations were even written, and in those days, everyone had a different vision for what the industry would become. Over the years, what are some of the ways in which the industry evolved that surprised you?

Probably the most surprising and disappointing is the lack of progress at a federal level for cannabis reform. At the onset, it was clear that the 280e taxation was punitive and unfair as well as discriminatory banking policies.  Truly little has been done to change this in the past 10-12 years.

The rest is expected.  Early stage markets are messy and confusing.  You have good actors and bad actors.  You have huge success stories and epic failures.  Everything is new so there are always opportunities to win and plenty to lose.

Do you think cannabis reform will be a significant factor in the upcoming US presidential election?

I hope not as this is not a political football.  Biden made promises and if he can live up to getting cannabis rescheduled (and not make it an issue to bait the younger voters), I think the industry should rally behind him if he commits to further descheduling.  This is a tough question to answer given the presumption options we have on who can lead our country in the next 4 years and the risk of civil unrest or turmoil that could follow this upcoming election.

Photo from MJ Unpacked event

While many conferences are open to everyone, MJ Unpacked is unique in its focus and audience, limiting attendance to vetted license holders and applicants, accredited investors, and qualified media & research personnel. How does this change the experience for attendees?

Honestly, we just listened to people and understood what they disliked about most of the events they went to.  And on the top of that list was how many unqualified people they need to sift through to have a meaningful conversation.  Trade Shows are like family gatherings.  You want to have a sense of belonging.  Talk with the people you have shared experiences with.  Sometimes get in arguments, but mostly feel you are among your people who care about you and support you.  Your tribe.

But I think what sets our team apart is our compassion and empathy for the people we serve.  We never approach this as selling a booth or selling a ticket.  This is about partnering with our exhibitors and sponsors to invest in an event to get a return on their marketing spend.  That can in turn help grow their business, hire more people, serve more customers.

We like to say we are focused on outcomes, not our income.  The latter is a function of being of service and value.

The next MJ Unpacked event is coming up this April in Atlantic City, New Jersey. What aspect(s) of the New Jersey cannabis market are you most excited about?

This event is not a New Jersey event despite misconceptions in the market.  Our focus is on the east coast because this is where all the new investment and market growth will come from in the next several years.  But this is still national in scope. At the past 2 events we did in New York, California operators were among the top 4 states represented in our attendance.

What excites me is how well New Jersey is rolling out its market and licensees.  And Atlantic City is on the up and reminds me a lot of Vegas 20 years ago.  It was a tough decision to leave midtown Manhattan as we love the city, the energy, the opportunity there, but as the industry remains undercapitalized, the AC event offers a lot of savings to our delegates and provides a more concentrated event environment.  We don’t want to see the event go the way of MJBiz where the trade show has become second billing to the action in Vegas.

How does MJ Unpacked proactively help facilitate connections between brands and investors?

This is the very basis of why we created MJ Unpacked.  Cannabis will mature into a CPG (consumer packaged goods) industry.  Brands will be where the true wealth creation will come.  Retail will support local economies and create opportunities for local business success.  Cultivation will bifurcate into craft and commodity.  We started MJ Unpacked to meet the needs of the market at the moment, but to more importantly provide a better, fairer, and more open market for these brands to flourish. To compete on value and authenticity. And to support the small to midsize businesses people who have invested everything to make the industry not only what it is today but will be in the future.  We truly want to support the personal and professional growth that happens when you have a brand new industry emerge.

That said, I think you were asking specifically at our events.  Sorry for the soap box speech.  I think the power of the connections comes from our event design.  We know that walking a Home Depot style event that is endless aisles of sameness often leads to disengagement or overload.  We intentionally design our event to create an experience that connects everyone in the room.

A simple tool is to create a lot of soft seating.  Allowing people to sit down and have a conversation, establish trust and THEN be able to conduct business.  On the tech side, our exhibitors and attendees can message each other leading into the event and schedule time to meet on the show floor or in one of the lounges.  We designed our own lead gen tech so it is as easy as opening your camera and taking a pic of a QR code that can then be stored in your phone or accessed daily from your lead report.  There is much more we put into our design that makes MJ Unpacked unique that would be too long to go into.

Photo from MJ Unpacked Event

What advice would you give to founders who are attending MJ Unpacked specifically to meet potential investors?

Be prepared.  The lack of capital in a growth market is the fundamental reason our industry is struggling.  Period.  Many early angel investors are tapped out or tired of losses.  Many VCs have limited dry powder and are conserving it to support their existing portfolio companies.  PE and institutional capital hasn’t overtly entered the game (yet).  And if you’re raising money for a private venture, you’re competing against public companies that investors can buy at a 90% discount and exit whenever they want.

You need to be able to communicate your UVP effectively. How will you differentiate in the market?  Gain customers?  Scale with efficiency?  Investors have seen and heard most before.  You need to be able to demonstrate you have a solid plan and the team to execute.  You need to show you can weather the storm.  Turnover is rampant so your team better be bought into the vision (through equity).

There is money out there, but as noted, the competition is fierce.  Grit, persistence, consistency are required, not unique.

If you were looking for an easy road to riches and picked cannabis, you might want to turn around and head back.  It is bumpy and filled with pitfalls, but the reward is way beyond what any of us can imagine.  Setting aside the opportunity to create wealth, equity, fame or fortune, we are collectively building a brand new industry and changing the world, for the better I believe.  That needs to be the core source of your strength.

And after that doom and gloom, I am optimistic that if we achieve Schedule 3, this will have a radical impact on the available capital to the market.  But you still need to be buttoned up and on top of your game to get it.  The money that will come in next will be more cautious, more demanding, and have higher expectations (no pun intended).

Can you share a success story or two from past MJ Unpacked events where connections made at the conference led to significant outcomes for attendees?

This is what drives us and honestly, there have been too many to mention.  But here’s a short list of my favorites.  Mr. Moxey Mints exhibited in NY-22, signed a deal with Acreage to expand to 10 states.  Matha Figaro participated through our social impact scholarship, met Azuca, got her NJ licensed and is launching her product right now.  Seed Talent refused to break down early and 15 minutes before the end of the show had a buyer come in (who thanked him for not breaking down early) and closed the biggest deal of the event for his company.  40 Tons launched their brand at our inaugural event and we even designed their prison cell concept for them that now has become a signature part of their brand.

From your vantage point, what would you say investors and VC firms in the cannabis space are looking for right now? And how might sentiments change later this year if there is policy movement at the federal level, such as Schedule III status or SAFE banking?

I think they are starting to make moves into brands.  Many are still playing the safe route to invest in ancillary, especially scalable tech due to the high margins of that business, but there are fewer and fewer new opportunities there.  But if you really want to know, you can hear it directly from the horse’s mouth.  We are having a Mega VC panel at MJ Unpacked titled Who’s Got Money and Where Are They Putting it.

Federal reform at this point is a requirement for our industry to move forward.  280e taxation was designed to bankrupt companies.  The industry needs leadership and a united voice, not just that of the larger companies who can fund lobbyists, but truly the entire industry to unite behind the efforts of getting cannabis rescheduled.

Safe or Safer banking will follow.  Then interstate commerce and eventually federal legalization.

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Not All Sensors Are Created Equal: TEROS ONE by AROYA

2/13/2024

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When it comes to taking moisture measurements, not all sensors are created equal. Here’s the challenge…

Growing outdoors in soil versus growing in a greenhouse or indoor environment using Rockwool or other substrate materials, is not the same. The main reason is that the electrical conductivity (EC) in soil is typically less than 0.5 dS/m. On the other hand, substrate materials contain much more water than soil, and this water typically has higher conductivity due to the much higher nutrient concentration. As a result, EC values are typically 10-20 times higher in substrate materials than in soil.

And yet, all the instruments cultivators use to take moisture measurements were designed only with soil in mind. These instruments are not new; they’ve been around for 50 years and have served traditional agriculture well. But when we tried to use such instruments in greenhouse environments in recent years, the limitations of these technologies became apparent.

Consider a sample material between two electrodes. If the material is conductive, the system can be represented as a capacitance and a resistance in parallel. The capacitance accounts for the amount of water in this supposedly porous material; the resistance (reciprocal of conductance) accounts for the presence of dissolved nutrients. Low-cost moisture sensors have traditionally relied upon a technique known as capacitance measurement. But the fact is, attempting to measure just the capacitance of a conductive sample is very difficult.

We developed the new TEROS ONE substrate sensor to address these limitations. The approach is to measure both capacitance and conductance at once – not just capacitance. Known as complex dielectric measurement, this technique permits measuring both water content and electrical conductivity with the same instrument. Through lab testing, we discovered the following:

When measuring permittivity and conductivity in water or standard solvents, the TEROS ONE yields accurate measurements of dielectric and conductivity for EC values up to 20 dS/m. That’s equivalent to roughly half the conductivity of the ocean.

We also tested the TEROS ONE in Rockwool and compared it to a competing sensor. Salinity has no impact on dielectric measurements, hence on water content estimates, and this is what we observed with the TEROS ONE. However, when we tried the same test using a capacitance sensor, we found that the conductivity of water does impact measurements – resulting in incorrect water content estimates. Likewise, pore water EC estimates with this capacitance sensor are severely affected by water salinity.

Visit Aroya.io to download the complete scientific paper: Dielectric-based moisture measurements.

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The state flag of California flying on a clear, blue sky day.

California Bill Would Bring Hemp Products Into Cannabis Market

2/13/2024

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The California cannabis industry could experience significant changes under a draft bill introduced last week to the California Assembly, according to a Canna Law Blog analysis.

Sponsored by Assemblymember Cecilia Aguiar-Curry, the draft bill AB-2223 could have some major implications for the industry, including:

  • Cannabis manufacturers and other operators would be allowed to use hemp and its derivatives, and regulations to that end would be required by July 1, 2025. The products would still be required to comply with industry rules including track-and-trace measures.
  • The proposal would also crack down on so-called “synthetic cannabinoids” — operators would not be allowed to use delta-9 THC “that has been converted from a hemp-derived cannabinoid,” and retailers would not be allowed to sell products containing “converted delta-9 tetrahydrocannabinol,” the report said.
  • The proposal would also bring new standards for hemp food and beverages including rules to regulate serving sizes and the number of servings (five) allowed per package, as well as definitions for hemp dietary supplements including pills, tablets, and capsules.

Notably, the draft proposal is still very new — some sections were even left blank by the drafters, including the maximum amount of THC that would be allowed under a proposed potency cap — and the bill could undergo significant changes before becoming law (if it advances at all).

California voters passed adult-use cannabis legalization in 2016 and the state’s adult-use industry launched in 2018. The state currently operates the largest legal cannabis industry in the world with $5.9 billion in combined medical and recreational sales in 2023.

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Maryland Latest State Ensnared in California Lawyer’s Web of Social Equity Cannabis Lawsuits

2/13/2024

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Editor’s note: this article was written by LJ Dawson for The Outlaw Report, and has been republished with permission.

Maryland is the most recent victim of a California lawyer and cannabis entrepreneur’s serial suing of state cannabis social equity programs.

Jeffrey Jensen filed a lawsuit on behalf of his wife Justyna Jensen, both of whom live in Pasadena, California. Jensen claims that the Maryland Cannabis Administration’s requirement of state residency to qualify for social equity is unconstitutional.

Jensen is using the dormant commerce clause of the constitution to allege that Maryland is discriminating against Justyna because she is an out-of-state resident. Though her university met the requirements for social equity applicants with 40% of the individuals qualifying to receive a Pell Grant, she was denied because the university was in California not Maryland.

MCA has until Feb. 20, 2024 to file a response in court to the lawsuit. Jensen has used the dormant commerce clause to file lawsuits elsewhere.

His Maryland case is one of at least six lawsuits he filed in the last two years in four states. He filed suits under similar allegations in California, Washington and New York.

His first lawsuit in New York was settled out of court, and he successfully secured a license in his settlement. But not before causing a months-long injunction or halt of licensing in 2022. This pause caused an already beleaguered New York market to lose even more valuable time in its attempt to launch.

Early this February, a federal New York judge rejected Jensen’s second case and plea for another licensing injunction. She claimed that the public interest of letting state-legal cannabis businesses launch overshadowed the lawsuit’s concerns.

In all his lawsuits in New York and Washington, Jensen is actually 49% owner of the companies. It is not yet clear how much he owns of his wife’s company in Maryland that was denied a license in December 2023.

Both Mr. Jensen and Mrs. Jensen applied together with an arm of Cookies’ corporations and L.A. based Blaqstar for a retail cannabis license in Pasadena, California. According to that 2019 cannabis retail application, Mrs. Jensen, the Maryland plaintiff, grew up in Poland and immigrated to America in 2002 to attend graduate school for financing. Mr. Jensen is self-described as being involved in cannabis law since 2016 and passionate about social inequity.

A judge denied Jeffrey Jensen’s Washington state injunction in January. He made similar claims of discrimination against out-of-state residents. However, no final order has been delivered as Jensen is attempting to pursue litigation specifically related to his company’s license.

He filed the lawsuit on behalf of a Michigan cannabis entrepreneur, Kenneth Gay, who is also his partner in business and plaintiff in separate New York and California lawsuits. Gay and Jensen own Peridot Tree WA INC, the California based cannabis company and plaintiff in the Washington lawsuit.

Jensen appears to benefit if he wins any of these cases as a significant owner of several of the businesses. New York filings accused him of being in “sole control” of the companies applying for cannabis licenses in New York. Maryland’s cannabis community will undoubtedly await the MCA’s response with much anticipation, knowing that Jensen’s lawsuit could potentially cause a delay in Maryland’s licensing.

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Navy Recruits No Longer Disqualified for Cannabis Use

2/13/2024

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The U.S. Navy is no longer immediately disqualifying recruits who test positive for THC while attending boot camp at Recruit Training Command in Great Lakes, Illinois, Military.com reports.

According to Rear Adm. James Waters, the director of the Navy’s personnel plans and policy division, the goal of the policy change is to boost recruitment opportunities as cannabis is becoming more prevalent and legally accessible.

“If they fail that test and own up — ‘Yes, I smoke marijuana ‘– we do an evaluation of the young person to make sure there’s not something else going on. But we trust that through the process of boot camp that we have an opportunity to bring them along with our culture.” — Waters, via Military.com

Waters said the move makes the Navy more “reflective” of the reality of cannabis policy in the U.S.

“We recognize that many states have legalized marijuana,” the admiral noted; however, he also said that the policy change only applies to cannabis and he stressed that “we don’t do drugs in the military,” the report said.

The new policy also coincides with other changes the Navy has made to streamline the recruitment process, including adjustments to the pre-boot camp physical training regimen.

The recruitment policy change comes as President Joe Biden (D) considers a recommendation from the U.S. Department of Health and Human Services that cannabis be moved from Schedule I to Schedule III on the Controlled Substances Act (CSA). A group of Senate Democrats, meanwhile, last month called on the Biden Administration to deschedule the plant from the CSA entirely, which would effectively end federal cannabis prohibition.

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Minnesota Mayor Charged With Illegal Cannabis Cultivation

2/12/2024

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The mayor of Winnebago, Minnesota, and his son were arrested on Thursday after being linked to multiple commercial-grade greenhouses being used to grow illegal quantities of cannabis, the Fairmont Sentinel reports.

According to court documents, multiple law enforcement agencies launched a cooperative investigation into the grow sites in January 2023 after the South Central Drug Investigative Unit received an anonymous tip in that greenhouses in Winnebago were being used to grow cannabis plants.

Adult-use cannabis is legal in Minnesota and residents aged 21+ are allowed to grow their own cannabis plants at home — but there is a limit of eight plants, with a maximum of four flowering at once, per household. Police reported discovering about 240 cannabis plants between multiple properties linked to the father-son duo, who were taken into custody on Thursday, the report said.

FOX 9 reports that Mayor Scott Robertson (67) and Jacob Robertson (46) were each charged with the unlawful cultivation of cannabis and have admitted their involvement to investigators, and said that they were the only people involved in the operation. The men were also reported to have posted bail and gotten out of jail as of Sunday.

Mayor Robertson was in the second year of a two-year term as Winnebago’s mayor after winning a write-in vote in 2021.

Minnesota’s cannabis legalization law took effect last year on August 1, and the state’s regulated cannabis sales are expected to launch sometime next year.

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Therapeutic Psilocybin Proposal Advanced By Massachusetts Lawmakers

2/12/2024

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Lawmakers in the Massachusetts Joint Committee on Public Health advanced a proposal this week that would legalize psilocybin — the psychedelic compound in so-called “magic mushrooms” —  for medical, therapeutic, and spiritual purposes, Marijuana Moment reports.

Sponsored by Rep. Nicholas A. Boldyga (R), proposed bill H.3605 would allow the supervised use of psilocybin during sessions overseen “by a properly licensed facilitator.”

Under the bill, the state Department of Public Health would be in charge of licensing the program’s facilitators as well as the educational institutions where facilitators would be trained, and other regulations related to the program. Facilitators would be charged a $155 biennial licensing fee and would be required to complete between 20 and 300 hours of training from a licensed school, including at least 20 hours of in-person practice. Facilitators would also need to be high school graduates, residents of Massachusetts, aged 21+, and free of felonies for the past five years before they can apply for the program, the report said.

The proposal comes as advocates for psychedelics reform recently submitted signatures for a 2024 Massachusetts ballot proposal that, if approved by voters, would legalize psilocybin as a treatment for anxiety, depression, and PTSD, according to a CBS News report.

Massachusetts activist organization Bay Staters for Natural Medicine expressed support for the proposal. “The PAC can no longer claim that the only choice before voters is an unelected control commission to draft expensive regulations or no legalization at all. That was always a false choice, and we’re grateful that H.3605 passing out of its committee puts that on full display” said Michael Botelho, a cofounder of New England Veterans for Plant Medicine and a Massachusetts Marine Corp Veteran.

Oregon was the first state to legalize medicinal psilocybin following a successful voter initiative in 2020, and the very first state-licensed psilocybin treatment center in the U.S. opened for business in Eugene, Oregon last year. However, many advocates have pointed out that Oregon’s high licensing registration costs for practictioners (which amount to more than 20 times the fees proposed under H.3605) could result in treatments being inaccessible to people in need. Massachusetts’ bill would create a much more inclusive framework for psilocybin therapists to serve a broader range of patients.

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Bitcoin: the Obvious Financial System for a Thriving Cannabis Industry

2/09/2024

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Editor’s note: this article is a guest contribution from Alan, founder of Strainly.

The world has experienced an unprecedented consolidation of power and wealth in recent years, with big government, big banks, and big pharma all working together to concentrate ever more power and attack households and family businesses. At the very core of this issue lies money. Or rather, monetary policy. Why? Let’s dive in.

Ever More Concerning Power Grabs

The problems faced by the cannabis industry predate the COVID-19 era. The cannabis community has always been concerned about corporate takeovers and consolidation, even before legalization occurred. Many in the industry have feared that it could become a manifestation of big agriculture, big tobacco, and big pharma. This fear is becoming a reality, as consolidation is happening right before our eyes and many feel powerless to stop it. Access to basic financial services has been a struggle for many in the industry, and as a result, a parallel financial system has emerged as an alternative to the broken legacy system.

A Broken System

The legacy system, based on fiat currency, is controlled by central banks and creates money out of thin air. This system unfairly distributes wealth, with the majority going to insiders while the rest struggle to survive and pay interests to those in power. Since the end of the gold standard in 1971, the purchasing power of fiat currencies such as the US dollar has significantly decreased. This has led to consumers and businesses taking on more credit to acquire the assets they need, which can be extremely challenging for cannabis industry businesses. Add to that the additional regulatory burdens faced by cannabis businesses, and we’ve created an environment where small and family-run businesses have to struggle immensely to even stay afloat, let alone turn a profit.

The fiat system is closely tied to the principle of proprietary ownership, where innovators seek exclusive rights over their “intellectual property” and any of its derivatives to prevent anyone else from profiting from or modifying their work. In the context of cannabis, this system incentivizes breeders to limit access to their cultivars and restricts other breeders from improving the genetic pool, ultimately leading to a destruction of biodiversity. It also leads to predatory practices against farmers who inadvertently breach patents by being cross-pollinated by proprietary varieties. The fiat system, along with predatory proprietary practices, hampers innovation while consolidation prevails, as smaller businesses struggle to compete in a system controlled by corporations. This system is undeniably penetrating the cannabis industry, as I have been writing for many years.

The industry has been consolidating at an alarming rate, with debt-ridden corporations and cronies pushing legacy farms out of the market while flooding it with low-quality products. This race to the bottom is a direct result of the fiat-based market system, which encourages consolidation and does not favor high-quality craft products. Small-scale craft producers often struggle to thrive in a system that demands economies of scale and unattainable compliance requirements. Instead of consolidating the cannabis industry based on capital expenditure, I’d argue that a Bitcoin-centric industry would reward craft producers based on the quality they bring to the market, rather than the size of their operations. How?

A New Paradigm: Money Limited in Quantity, Just Like Nature

While many may still view cryptocurrencies with skepticism, I am convinced that using “sound money”–specifically Bitcoin–addresses a lot of the issues described above. Sound money is limited in quantity and therefore maintains its value over time, thus rewarding hard work and innovation. Bitcoin, as a decentralized and limited currency, offers a viable alternative to fiat money. It separates money from the State and corrupt politicians and central bankers, while securing transactions between parties without the need for intermediaries. Bitcoin is not subject to the inflationary pressures of fiat currencies and is designed to increase scarcity over time, rewarding delayed gratification and long-term thinking.

By using Bitcoin, breeders and growers can be paid in a currency that allows them to focus on their craft without the need to engage in patent wars or defend intellectual property.

Unlike the corporate agricultural behemoths who patent crop genetics and then sue neighboring farmers when their fields get cross-pollinated, when it comes to cannabis, open-source breeding is arguably the most suitable intellectual property (IP) strategy for small breeders and farmers. Engaging in patent wars with limited resources is often a losing battle, simply because obtaining a plant patent on your strain (as a breeder) does not actually prevent anyone from using your genetics. It merely gives you legal grounds to pay a law firm and take the infringer to court, which implies that you have cash set aside, raised money from investors or loans from banks. If the other party has deep pockets, it’s very easy to bankrupt you through legal proceedings. They literally turn your IP against you. It’s a game where the party that is ultimately closest to that “easy money” printer (through subsidies and tax credits, investments, or loans) always wins.

Bitcoin provides an alternative solution by allowing breeders and growers to be paid in a currency that appreciates in value and preserves the value of their hard work. Hard money. It protects their anonymity and enables them to transact with anyone in the world, without the need for permission from intermediaries. Bitcoin provides breeders the opportunity to focus on their craft and generate revenue based on the desirability of their genetics, rather than defending intellectual property to collect perpetual rents. Because breeders and growers should not be aiming to find ways to get closer to the money printer to thrive.

In addition to promoting financial autonomy, Bitcoin also addresses the issue of transaction settlement, which has been a central problem for legal cannabis businesses that have been excluded from the traditional banking system. Many of these businesses have had to rely on cash transactions, which come with practical and security challenges. Bitcoin’s trustless and instant transaction settlement between parties provides a more secure and efficient way to transact, without relying on banks or payment processors. This removes the need to pay (often outrageous) processing fees and allows businesses to be self-reliant rather than depending on financial institutions that have historically been hostile towards the cannabis industry.

Conclusion

Strainly has been using bitcoin as our only payment gateway for over a year, and we have found that being a bitcoin-only business is not only feasible, but empowering.

Of course, it pays to be cautious, and skeptics will undoubtedly be nervous about widely-publicized price swings and “crashes” in the crypto markets over the past few years. The fact that Bitcoin is still in its early stages of adoption and is not yet widely used as a medium of exchange or store of value contributes to its volatility. It’s existed for only 15 years and is the only truly decentralized form of money, which can lead to more pronounced price movements as there is no entity to stabilize the market. As more people become aware of and use Bitcoin, its price should become less volatile. It’s worth noting that since its inception, however, bitcoin has appreciated more than any other asset, by far.

In conclusion, I believe that Bitcoin is the natural fit for the cannabis industry. If you believe in decentralization, open-source technology, resilience, and biodiversity, Bitcoin aligns perfectly with these values. It offers a sound money system that promotes financial autonomy, equitable distribution of wealth (that has to be earned and cannot be printed out of thin air), which ultimately protects biodiversity by fostering low time preference, or in other words, a long term vision. It addresses transaction settlement and allows breeders and growers to be rewarded for their hard work, focusing on quality rather than engaging in patent wars and defending artificial moats. Ultimately, bitcoin empowers businesses to be self-reliant, free from the constraints of the broken financial system.

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Idaho Bill Would Ban Advertisements for Out-of-State Cannabis

2/09/2024

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Idaho lawmakers are set to consider a proposal to ban the advertising of illegal products after a state lawmaker saw billboards advertising out-of-state cannabis products, Idaho Capital Sun reports.

The proposal, co-sponsored by Rep. Judy Boyle (R) and Sen. Chris Trakel (R), would allow misdemeanor charges against anyone who “willfully publishes any notice or advertisement, in any medium, of a product or service that is illegal under Idaho law,” the report said. Proponents of the bill referenced witnessing specific instances of cannabis being advertised in Idaho including a billboard near the Idaho-Oregon border, on another billboard in downtown Boise,  and in newspaper advertisements.

“And then another individual sent me — actually on the internet — that you can have drugs delivered to your Idaho doorstep. So I thought this was a little outrageous.” — Boyle, via the Idaho Capital Sun

The bill — which, if passed, would take effect immediately — was introduced on Wednesday to the House State Affairs Committee.

Idaho is one of the last remaining states to maintain a complete prohibition on cannabis but the majority of its neighboring states — Montana, Nevada, Oregon, and Washington — have passed adult-use cannabis legalization laws. Of Idaho’s other neighbors, cannabis is also prohibited in Wyoming but legal for medical use in Utah (and federally legal in Canada).

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Pennsylvania Gov. Calls for Legalizing Adult-Use Cannabis

2/09/2024

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Pennsylvania Gov. Josh Shapiro (D) called this week for the legalization of adult-use cannabis after suggesting the state is losing out on potential cannabis revenues to neighboring states that have already legalized, the Philadelphia Inquirer reports.

The governor signaled his priority on the issue on Tuesday by including legalization in his $48.3 billion budget proposal. An administration official predicted that with a 20% tax rate on regulated cannabis products, the state could generate $14.8 million in tax revenue during the first year, increasing to $76 million in its second, $160 million in its third, and $230 million in its fourth year of a regulated adult-use cannabis market, according to the report.

Pennsylvania‘s neighbors in New York, New Jersey, Delaware, Maryland, and Ohio have already legalized adult-use cannabis and Shapiro argues that the state is falling behind.

“Let’s stop hamstringing ourselves and start competing.” — Shapiro, via the Philadelphia Inquirer

The state’s Republican leadership, which controls the state Senate, has historically opposed significant cannabis reforms but this week suggested they may be willing the consider the proposal, the report said.

“We also need to understand where the governor is coming from,” said Senate Majority Leader Joe Pittman (R).

A Pennsylvania poll found last July that just over half of the state’s voters support legalizing adult-use cannabis, slightly down from a previous poll which placed support at 56%.

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EU Officials Approve Initiative on Medical Cannabis Access, Research

2/08/2024

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Officials with the European Commission this week partially approved the launch of the ‘European Cannabis Initiative,’ which is a multi-national ballot initiative seeking to improve medical cannabis access in the European Union (EU) and boost cannabis research opportunities.

The commission approved the initiative to cover two out of the three requests made by advocates:

  • That the initiative would “foster access to medical cannabis and allow the transportation of cannabis and its derivatives prescribed for therapeutic purposes to ensure the full enjoyment of the right to health; and
  • That the initiative serves to “allocate the necessary resources for researching cannabis for its therapeutic purposes.”

Advocates had also called for the initiative to “convene a trans-European citizens’ assembly on cannabis policies” that would have included sanctions and established consistency among member nations’ cannabis policies, but the commission ultimately rejected this request.

“The Commission had to refuse the registration of the first objective of the initiative, as it falls outside the Commission’s powers to submit a proposal for a legal act on this matter,” officials wrote.

Following Tuesday’s approval, advocates now have six months to launch their signature collection efforts. If the petition can garner at least one million supporting signatures from at least seven different EU member nations, the European Commission will be forced “to take action in response to the request or not and will be required to explain its reasoning.”

The approval follows the recent announcement that lawmakers in Germany — which is the EU’s largest economy — have reached a final deal to legalize adult-use cannabis, with possession and home cultivation expected to become federally legal there starting April 1.

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Massachusetts Sets New Annual $1.56B Cannabis Sales Record

2/08/2024

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Massachusetts cannabis dispensaries set a new annual sales record in 2023 at $1.56 billion, according to data from the Cannabis Control Commission (CCC) outlined by Boston 25 News.

The year was capped off with the industry’s most lucrative month yet after licensed retailers sold $140.1 million worth of adult-use cannabis products in December, breaking the previous monthly sales record from August 2023. Regulators said the state is tracking 338 dispensaries and 21 cannabis delivery companies. Ultimately, annual cannabis sales increased last year by $78 million, or about 5%.

Despite the gains last year, the Massachusetts cannabis industry experienced a tumultuous 2023 following the sudden removal of CCC Chair Shannon O’Brien in September — who in turn sued the state treasurer over the decision. Then two more top CCC officials were suspended in December, which sent the agency into further disarray and prompted lawmakers to call for an investigation into the agency.

CCC Acting Chair Ava Concepcion said in the report that the state’s cannabis industry is “still a maturing market.”

“This continued growth confirms that Massachusetts’ regulated marijuana industry is still a maturing market,” said the acting CCC Chair Ava Concepcion.

“As more retailers and delivery licensees come online, flower prices start to stabilize, and the stigma surrounding cannabis slowly dissipates — legal, tested products are becoming more accessible, affordable, and approachable than ever before, and that’s reflected in the multiple sales records licensees broke in 2023.” — Concepcion, via Boston 25 News

Massachusetts voters approved cannabis legalization in 2016 and the state’s adult-use industry was launched in 2018. Sales have continued to grow each year and the state is on track to surpass more than $6 billion in total adult-use cannabis sales sometime this year.

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Multiple Cannabis Legalization Proposals Filed In Hawaii

2/07/2024

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Hawaii lawmakers have multiple options for adult-use cannabis reforms before them following the introduction of three different cannabis bills so far this legislative session.

Introduced late last month, a pair of companion bills brought by House Rep. David Tarnas (D) and Sen. Jarrett Keohokalole (D) closely resemble a legalization proposal unveiled late last year by Hawaii Attorney General Anne Lopez, according to Marijuana Moment. Those proposals (HB2600 and SB3335) would legalize adult-use cannabis and establish the Hawaii Cannabis Authority, which would oversee sales and other regulatory considerations.

Some advocates, however, argue that the proposals could do more harm than good by introducing new cannabis possession penalties for minors.

“Generally speaking, the bill provides a sound floorplan for adult-use legalization but erects a structure that is still far too punitive in its approach. Placing a velvet glove of legalization on law enforcement’s iron hand is not what is called for.” — Nikos Leverenz, of the Drug Policy Forum of Hawai’i and the Hawai’i Health and Harm Reduction Center, via Marijuana Moment

Lawmakers could also take up two other cannabis reform bills as outlined by Cannabis Business Report:

  • Senate Bill 2487, proposed by Sen. Joy San Buenaventura (D), seeks to decriminalize the adult possession of up to one ounce of cannabis, reclassifying possession “offenses” as civil violations rather than criminal misdemeanors.
  • House Bill 2037, proposed by Minority Leader Rep. Gene Ward (R), would let voters weigh in on the idea of a constitutional amendment to legalize adult-use cannabis. If approved, the amendment would allow lawmakers to implement an adult-use system, the report said.

Hawaii was one of the first states to legalize medical cannabis — and the first to do so via the legislature — but lawmakers have refused to go further on the issue despite growing national momentum for significant cannabis reforms. The Hawaii Senate voted overwhelmingly in favor of legalizing cannabis last year but that proposal ultimately died in the House.

A report published last year found that the state could generate more than $50 million in additional tax revenue each year by legalizing and regulating adult-use cannabis.

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Maryland Bill Would Reinstate Traffic Stops and Searches Based on Cannabis Odor

2/07/2024

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Police in Maryland may once again be able to carry out traffic stops and conduct vehicle searches based solely on the presence of cannabis odor under a new proposal looking to reverse a legal change enacted last year, the Frederick News Post reports.

Lawmakers ended last year’s legislative session by adopting a law that prohibited police vehicle searches based purely upon an officer’s detection of cannabis by its odor.

The new bill, which is sponsored by State Rep. William “Bill” Folden (R-Frederick) and titled the Drug Free Roadways Act of 2024, seeks specifically to repeal “a certain prohibition against a law enforcement officer initiating a stop or a search of a motor vehicle based solely on the odor of burnt or unburnt cannabis.” The proposal also seeks to remove a provision that makes evidence from unlawful searches inadmissible in court.

Folden, who has a law enforcement background, told the Senate Judicial Proceedings Committee on Friday that his proposal highlights a matter of public safety and would safeguard against intoxicated drivers, the report said.

The bill is opposed by justice reform advocates including Yanet Amanuel, director of public policy for the American Civil Liberties Union of Maryland, who noted during Friday’s hearing that police historically used the smell of cannabis to justify racial profiling.

“Diligent law enforcement can and should be used to solve crime using honest initiatives and techniques without relying on pretextual bases such as the odor of marijuana for stopping and searching Black and Brown people.” — Amanuel, via the Frederick News Post

Maryland voters approved the state’s cannabis legalization measure in 2022 and adult-use sales were launched on July 1, 2023.

A 2021 survey of self-reported behavior found that cannabis legalization does not lead to an increase in cannabis-impaired driving.

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AROYA: Optimizing Cannabis Cultivation With Cutting-Edge Software and Sensors

2/06/2024

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In the often tumultuous cannabis industry, cultivators face a myriad of challenges that make profitability an uphill battle. From grappling with unregulated markets and relentless competition from well-funded interests employing race-to-the-bottom pricing strategies, to navigating the complexities of federal illegality and dealing with a patchwork of ever-changing regulations, the journey for cannabis brands is far from straightforward.

However, where there are challenges, there is also innovation, and our industry is no exception. In response to these obstacles, a range of technological solutions has emerged to assist cannabis cultivators in their quest for success. One such solution is AROYA, a service designed to empower cultivators by optimizing their operations and increasing yields through the application of science and data. AROYA is a cannabis-specific offering from Addium, an AgTech (Agricultural Technology) company specializing in precision cultivation.

In this Spotlight, we delve into the world of Addium, its origins, and the context driving its mission. We had the privilege of sitting down with Scott Campbell, the CEO of Addium, to explore the applications of AROYA and the story behind the company’s commitment to enhancing the cannabis cultivation experience.

The Company

Addium was founded in 2022 in Pullman, Washington, located just near the state’s border with Idaho, in a region well-known for its agriculture. The roots of their story, however, trace back several years earlier. The vision to apply AgTech solutions to cannabis cultivation initially germinated during Campbell’s tenure at METER Group, another technology company based in Pullman that has offered scientific solutions to agricultural and industrial clients for decades.

METER Group was already developing solutions geared toward indoor cultivation, but Campbell noted that most of the applications were research-focused rather than agriculture-focused. The fact is, the current economics of international agriculture don’t financially justify indoor cultivation in areas where farming is difficult due to the environment, because it’s so cheap (albeit immensely wasteful) to import produce from overseas. Long-term, Campbell believes that indoor farming will become more common as it becomes more energy and cost efficient, and as climate change begins to have a more significant impact on agriculture around the world.

In the meantime, however, Campbell realized that cannabis was the first crop where it actually made financial sense to grow indoors, and while there were a variety of cannabis-focused equipment manufacturers and grow-monitoring systems that had been developed for growers already, none of them were using the combination of software and cutting-edge sensor technology that his company had to offer.

Washington was among the first U.S. states to fully legalize adult-use cannabis in 2012. After recognizing the opportunity, Campbell helped to spearhead the development of AROYA, a cultivation management platform specifically geared toward cannabis farming, which over time was adopted by licensed cultivation companies in numerous state markets – ranging from large-scale MSO’s to small and mid-size craft brands.

Although cannabis was legal in Washington, it was (and is) still federally illegal, which eventually led to disagreements within the parent company. Plant-touching operators are very familiar with how the stigma associated with their products can affect business relationships, and the ancillary businesses who cater to them often face similar obstacles. In this case, an amicable solution was reached: Campbell and his team would launch a new company called Addium with licensing rights to use the sensors and software for the cannabis industry and other specific applications. Today, Addium serves nearly 35,000 commercial clients and offers AROYA as one of its flagship products.

The Product

AROYA offers licensed cannabis growers a combination of software and hardware that work together to help optimize plant growth and maximize yields.

“There is a core belief behind everything we do at AROYA,” Campbell says. “Quality science = quality data = quality plants.” By having better insight into the numerous environmental factors affecting their plants, growers can more confidently make decisions about everything from irrigation, to lighting, to fertilization and harvesting. On top of that, AROYA’s software makes the management of all this data streamlined, and allows the operator to rapidly assess the current status of their crops at every stage, from vegetative to flowering and post-harvest.

Collecting all of this valuable data is the network of sensors that monitor the physical processes involved in cannabis growth and harvesting: irrigation, lighting, feeding, and processing. Campbell explained that while other software solutions geared toward cannabis cultivators tend to employ third-party sensors that were developed for larger-scale industrial agriculture, AROYA uses proprietary sensors designed specifically for precision farming, capable of taking much more accurate readings.

According to their website, AROYA’s line of proprietary suite of sensor technology includes:

  • A substrate sensor designed purposefully for cannabis that makes absolute comparisons between different growing media possible.
  • A climate station that allows growers to reliably monitor CO2, air temperature, relative humidity, as well as barometric and vapor pressure.
  • A full-spectrum quantum PAR sensor to provide accurate PAR measurements under all light sources, including LEDs.
  • An in-pipe EC sensor to measure the electrical conductivity of water in a pipe or tank, pairing with the substrate sensor to deliver a snapshot into the salts in your soil or substrate.
  • A moisture analyzer for use during the drying process, giving fast and accurate analysis of the moisture content and water activity of a sample.

Together, these sensors work in harmony with the software and environmental controls to allow for strategic crop steering as well as robust monitoring and enhanced control over every stage of the process. On top of all that, AROYA offers ongoing live customer support and consultation to help ensure that their clients are making the best use of their platform and to help custom-tailor workflows and data visualizations to each client’s unique requirements.

What kinds of cannabis farms use AROYA?

Campbell says AROYA has been implemented alongside virtually every type of cannabis cultivation methodology that exists, however the unifying trait among them tends to be operators who are obsessed with precision and tracking performance over time.

The key benefit of this data-driven approach is a consistent and predictable improvement in profitability per square foot per year, which Campbell says results in an effect similar to that of compounding interest: over time, a small but reliable increase in yield can add up to a very meaningful impact on a company’s bottom line.

The AROYA website features numerous case studies published about companies that have implemented their solutions, and one such brand is Node Labs, a cannabis breeder based in California that uses a scientific approach to provide cultivators with high-quality genetics. General Manager and Head of Cultivation for Node Labs, Cristian Ramos, said, “The major difference coming from traditional cultivation over to a science-based company with tissue culture and creating strains for cultivators is the necessity to be extremely disciplined with data collection and the standardization of practices.”

Another case study that underscores the impact of AROYA’s platform is its implementation at SHANGO, a cannabis brand with operations in Oregon, Arizona, Washington, and Nevada. Embracing AROYA’s advanced sensor technology, SHANGO has seen a remarkable 20% yield increase across their cultivation facilities. This success is not just confined to one location; the platform has enabled SHANGO to consistently enhance operations and decision-making processes across state lines. SHANGO’s Cultivation Manager, Greg Stefanik, highlighted the transformative effect of AROYA’s system on their ability to understand and optimize their operations, stating, “I had dreams of this… being able to graph out our cultivation data, review our history, and learn from each crop cycle. It’s like unlocking a new level of understanding.”

Conclusion

In a landscape marked by the complexities of federal illegality, fluctuating regulations, and fierce competition, AROYA offers an innovative approach for cannabis farmers to survive and thrive despite the obstacles they are forced to contend with. By combining their cutting-edge sensor technology and sophisticated software, AROYA has empowered cultivators to harness the power of data, adding another layer of value to their businesses and giving them a welcome advantage. And, in the current paradigm for licensed growers, every advantage matters greatly.

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Germany’s Government Says Cannabis Legalization Deal Has Been Reached

2/06/2024

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Germany’s Traffic Light Coalition government — led by the Greens, the Social Democrat Party, and the Liberals — announced that a final consensus on the coalition’s plan to federally legalize cannabis was reached last week, according to a Forbes report. The agreement by the country’s leading coalition signals that a parliamentary vote is likely coming soon, with the legalization policy set to take effect on April 1.

The announcement comes just weeks after Germany’s health minister said he had high hopes that the nation’s adult-use cannabis legalization proposal would see a parliamentary vote this February.

Under the plan, personal cannabis possession and consumption by adults would be legalized, as would home cultivation. Cannabis sales would remain restricted but adults living in Germany will be able to register with private cannabis clubs starting on July 1, where cannabis distribution — but not consumption — will be allowed. The clubs will be limited to a maximum of 500 members.

The reforms were temporarily delayed by concerned members of the Social Democrat Party and due to international pushback, and the proposal was ultimately watered down last year to remove a provision allowing for blanket adult-use sales. Instead, lawmakers initiated a multi-year investigation into the implications of a regulated adult-use market with the possibility of enabling retail access at a later point.

Once enacted, Germany will be the third member nation in the European Union to legalize adult-use cannabis after Malta and Luxembourg. Additionally, many industry experts predict that cannabis reforms in Germany, which has the biggest economy in the EU, may inspire other EU members to follow suit with their own legalization policies.

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Kentucky Lawmaker Files Cannabis Legalization Bill

2/06/2024

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Kentucky state Rep. Rachel Roberts (D) last week introduced an adult-use cannabis legalization bill to the Republican-controlled House of Representatives, according to the Louisville Courier-Reporter.

House Bill 420, as it is aptly named, would legalize cannabis possession and use for adults aged 21+ and establish a regulated industry for the cultivation, manufacturing, and distribution of cannabis products. Additionally, employers in the state would be unable to fire or refuse to hire someone for legally consuming cannabis, and people with cannabis misdemeanor convictions would be able to get their records expunged.

Roberts’ bill, which is co-sponsored by Rep. Keturah Herron (D), would also establish a new board in the Public Protection Cabinet that would take charge of the cannabis licensing process. The industry be taxed with a 9% excise tax on all cannabis sales, including retail and wholesale purchases, for at least one year, then the board would be able to establish a new tax rate.

Cannabis industry taxes and licensing fees would go into a “cannabis fund” with the state Treasury that fund the implementation and administration of the industry. For any leftover funds, at least 30% would be spent on addressing the negative impacts of cannabis prohibition, including by creating job training and re-entry programs for communities “historically targeted by drug law enforcement,” the report said.

The legalization proposal comes as Kentucky is working to launch its medical cannabis program, which lawmakers passed last year.

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California Cannabis Grower Agrees to Pay $750K for Water & Wildlife Violations

2/05/2024

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The owner and operator of two Humboldt County-based cannabis cultivators, The Hills LLC and Shadow Light Ranch LLC, has agreed to pay $750,000 in fines and to take restorative actions after being accused of violating California state regulations protecting water and wildlife.

In a settlement approved by the Humboldt County Superior Court, Joshua Sweet — who owns and operates both cannabis grows — agreed to pay $500,000 to the Division of Water Rights, $175,000 to the North Coast Water Board, and $75,000 to the California Department of Fish and Wildlife (CDFW), according to a CDFW press release. Additionally, Sweet must obtain permits for his operations and take action to revert alterations to the water supply.

The restorations must be complete and the fines must be paid within five years, according to the settlement.

Sweet recently told CalMatters that he intends to “follow through with my end of the settlement” and that if the fines had been due immediately, “it would take everything I own.” Additionally, while Sweet recognized that his actions violated state law, he said he did not believe he was being treated fairly:

“Even during our court-mandated settlement conference, they were asked why they would go after a small independent businessman with these type of enormous fines usually reserved for huge corporations that destroy ecosystems.” — Sweet, in an email to CalMatters

The Hills LLC and Shadow Light Ranch LLC are based on 435 acres in The Emerald Triangle, a three-county region that is world-famous as an underground, frequently generational cannabis cultivation hub.

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