Federal Judge Blocks Arkansas Law to Ban Hemp-Derived THC

10/02/2023

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A federal judge has blocked an Arkansas state law that aimed to ban hemp-derived THC products, Arkansas Business reports. The decision by U.S. District Court Judge Billy Roy Wilson prevents the state from enforcing the law and the judge also denied the defendants’ motion to dismiss the case, setting a bench trial for September 7, 2024.  

The ban, which took effect August 1, narrowed the definition of hemp “to recriminalize the possession, manufacturing, transportation, and shipment of certain popular hemp-derived cannabinoid products,” the plaintiffs said in the lawsuit, adding that they feared that if the law wasn’t blocked, it “would lead to thousands of lost jobs around the state and turn farmers, business owners, and consumers – including Plaintiffs – into criminals overnight, despite no change in federal law.” 

The now unenforceable state law covered hemp-derived delta-9 THC, delta-8 THC, and delta-10 THC and added each to the state’s controlled substances list. 

In the ruling, Wilson said the plaintiffs were likely to win the case and that they suffer “a credible threat of criminal prosecution” that could affect their ability to obtain a license to grow or handle legal hemp as well as lost profits. 

Abtin Mehdizadegan of the Little Rock office of Hall Booth Smith, who represented the plaintiffs, said in an email to Arkansas Business that the judge’s order “represents an important watershed moment for the hemp industry,” noting that while it only applies to Arkansas, the plaintiffs “hope and expect that other states with similarly misguided ideas about banning industrial hemp products will take note.” 

The plaintiffs named Arkansas officials, including Gov. Sarah Huckabee Sanders (R), Attorney General Tim Griffin and prosecuting attorneys as defendants. They argued that the law is unconstitutional because it directly conflicts with the federal 2018 Farm Bill, which removed hemp from the federal schedule of controlled substances. 

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Michigan Ends Pre-Employment Cannabis Testing for Most State Jobs

10/02/2023

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Rules ending cannabis testing for tens of thousands of government employees in Michigan took effect on Sunday, FOX 2 reports. The Michigan Civil Service Commission had first proposed the rule change last May and the reforms were unanimously approved by the commission in the summer.   

Employees who work in safety-sensitive positions, including law enforcement, operate vehicles, provide health care, or work with prisoners, will still be tested for cannabis before being hired but the change impacts about two-thirds of the jobs within the state government.   

In an interview with FOX 2, Commissioner Nick Ciaramitaro said “Whether or not we agree with (recreational cannabis) is kind of beyond the point in terms of pre-hire.” 

“Use of marijuana on the job is different than having used it months before you take the test. It doesn’t make sense to eliminate qualified people because they took a gummy two weeks ago.” — Ciaramitaro to FOX 2 

There are currently about 200 applicants who are barred from working for the state due to a failed pre-employment cannabis test. Under the new rules, those individuals can reach out to the civil service department and request the removal of the sanction, allowing them to be eligible for state employment. 

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South Dakota Considers Increasing Medical Cannabis THC Caps

10/02/2023

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South Dakota officials are considering allowing 10% more THC in medical cannabis products and larger-sized containers as part of proposed changes to the state’s medical cannabis program, KELO reports. The changes also include rules prohibiting medical cannabis products from being manufactured with unadulterated cannabis and requiring rolling papers used for prerolls to be tested by state-approved laboratories.

During a hearing by the Legislature’s Rules Review Committee, Jeremiah Murphy, representing the Cannabis Industry Association of South Dakota, said that while he agreed that some additives are harmful and should be banned under the medical cannabis program, other additives can be either beneficial or dangerous depending upon the product that they are in. He suggested that the agency should develop a more detailed list of adulterants rather than outlawing them in a general rule.

Murphy also told the panel that a proposed testing requirement for rolling papers would be costly for manufacturers and the higher prices would be economically uncompetitive. He added that patients could still buy rolling papers and cannabis from dispensaries to roll their own, which wouldn’t be subject to state-required testing. He suggested that officials should instead develop a list of pre-approved rolling papers that manufacturers could use.

The Department of Health is accepting public comments on the proposal through October 9.

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American Nurses Association Formally Recognizes Cannabis Nursing Specialty

9/29/2023

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The American Nurses Association (ANA) on Thursday announced it is formally recognizing cannabis nursing as a specialty. The American Cannabis Nurses Association (ACNA) identifies cannabis nursing as a practice focused on the care of healthcare consumers seeking education and guidance in the therapeutic use of cannabis.

ANA is the sole reviewing body of specialty nursing scope of practice and standards of practice, requests for specialty recognition, and affirmation of focused practice competencies.

In a statement, ANA President Jennifer Mensik Kennedy said the recognition “highlights the essential role and special contribution of cannabis nurses to the health care system and promotes enhanced integration of cannabis therapies for health care consumers across diverse health care settings.”

ACNA President Rachel Parmelee said the organization is “deeply gratified by the groundbreaking establishment of cannabis nursing as an ANA-recognized nursing specialty.”

“Nurses are the largest group of health professionals, providing an opportunity to change the health care paradigm and include diverse wellness modalities beyond traditional Western medicine. Cannabis nursing requires specialized knowledge and competencies to navigate care and address the stigma associated with medical cannabis use to support a healthy society. We seek to create lasting, transformative change that enriches both specialized and general nursing practices, ultimately serving the well-being of patients nationwide.” — Parmelee in a press release

The ANA added that it “supports the urgency of clinical research to inform patients and providers on the efficacy of marijuana and related cannabinoids.” In a 2021 position statement, the organization said it supported the “review and reclassification of marijuana’s status from a federal Schedule I controlled substances.”

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Former Michigan Medical Cannabis Board Head Sentenced to Nearly 5 Years in Prison for Accepting Bribes

9/29/2023

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Rick Johnson, the former Michigan House speaker and head of the Michigan Medical Marihuana Board (MMB) was sentenced on Thursday to nearly five years in prison for accepting bribes while leading the MMB, the Associated Press reports. Johnson admitted he accepted at least $110,000 from 2017 to 2019.

Johnson served as Michigan’s House speaker from 2001 to 2004. During his sentencing, he told the judge he is “a corrupt politician.”  

Others already sentenced in the scheme include Michigan businessman John Dalaly, who pleaded guilty to charges levied against him in April. Dalaya admitted to paying Johnson at least $68,200 in cash and other benefits, including two private flights to Canada, and hired Johnson’s wife, who helped him fill out forms that would end up in front of the state board, as a consultant for $4,000 a month. Dalaya was sentenced earlier this month to more than two years in federal prison.   

Two lobbyists have also pled guilty in the scheme. 

After Johnson’s hearing, U.S. Attorney Mark Totten said the former lawmaker’s “brazen corruption tainted an emerging industry, squandered the public’s trust and scorned a democracy that depends on the rule of law.” 

Prosecutors had recommended a nearly six-year prison term for Johnson. 

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More Than 20 AGs Send Letter to Congressional Leadership Urging Passage of SAFER Banking Act

9/29/2023

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A bipartisan group of more than 20 attorneys general on Tuesday sent a letter to Congressional leadership urging them to pass the Secure and Fair Enforcement Regulation (SAFER) Banking Act. The bill passed the Senate Committee on Banking, Housing and Urban Affairs on Wednesday. 

In the letter, the attorneys general note that current federal law, which classifies cannabis as a Schedule I drug, presents “a risk of criminal and civil liability to banks providing services to state-licensed cannabis dispensaries and related businesses” which significantly inhibits “the ability of financial institutions to provide services to regulated cannabis operators and leaves those businesses struggling to find financing.” 

“The lack of access to banking services creates both barriers to entry into the industry and instability for existing businesses. Recently, Mastercard announced that it will no longer allow its cardholders to use their bank cards to purchase cannabis, cutting off a key revenue stream and making it harder for customers and businesses alike,” the letter states. “Further, where the public perceives that regulated businesses can only conduct business in cash, employees and customers are at greater risk of violent crime in pursuit of that cash. Several jurisdictions have seen a spike in robberies of cannabis businesses, some of which have resulted in deaths.” 

The signatories add that passage of the law “will enable the evolution of a banking system for legalized cannabis-related businesses that is both responsive and effective in meeting the demands of our economy.” 

The letter is signed by the attorneys general of Arizona, California, Colorado, Connecticut, Georgia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New Mexico, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, Vermont, Washington state, and Washington, D.C.  

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Körber Offers Preroll Solutions to Help Cannabis Brands Increase Profit

9/28/2023

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Pre-rolls have undeniably become one of the fastest-growing categories in the cannabis industry. Consumers seek convenience, and the era of worrying about low-quality cannabis in pre-rolls has faded into the past.

Furthermore, the introduction of cylindrical or cigarette-style pre-rolls (straight pre-rolls) has elevated an outstanding smoking experience, adding to the allure of this category.

With rising sales figures in many states, the need to optimize production becomes paramount, especially in light of limited financial liquidity and workforce availability. The focus shifts towards profitability, cost reduction, increased product quality, and enhanced appeal.

Let’s face it; achieving these goals requires departing from conical pre-rolls and slow-paced automated production. It’s time to draw inspiration from the tobacco and cigarette industry’s rod production methods.

Efficiency and Precision in Cannabis Production
In the 1950s, cigarettes came in various shapes, mostly lacking filters. Brands like Marlboro recognized the potential of filters, appealing to a broader consumer base. Standardizing the cylindrical shape introduced automation, significantly reducing production costs. Today, those early adopters dominate the global cigarette market, and Körber (formerly Hauni), the pioneer of filter cigarette making machines, stands as the undisputed number one machine supplier for this industry.

The question arises: Can this approach thrive in the highly fragmented U.S. cannabis market, challenged by interstate shipments? The answer is affirmative, albeit on a smaller scale. Körber’s CANTOS cylindrical pre-roll efficiently produces 40,000 pre-rolls per 8-hour shift. Leveraging the cigarette shape, it seamlessly integrates with regular cigarette packers. As national legalization approaches, highly automated and efficient production hubs emerge, making it even more enticing for some to transition to the world’s fastest pre-roll maker, the Nano-H, producing over 1,000 pre-rolls per minute.

Continuous Flow Production
Cigarettes are produced in a continuous flow, rather than individually rolled. This principle allows production speeds of up to 20,000 cigarettes per minute while maintaining the highest possible quality. Körber’s pre-roll makers embrace this continuous production principle, with adjustments to handle sticky cannabis. Achieving production costs per pre-roll (including all non-cannabis materials) below $0.02 becomes attainable.


© Körber Technologies

The Filter Plug: Customization and Trends
Upon opening a classic cigarette box, consumers immediately notice the filter plug. Beyond potentially reducing harmful substances, filter plugs enhance pre-roll appearance and flavor. With over 80% of filters worldwide produced on Körber’s filtermaking machines, Körber collaborates with customers to develop innovative filters. These include the capsule filter, featuring a crushable flavor capsule (e.g., mint), and the multi-filter, combining segments like charcoal and acetate. The crimped paper filter plug, once popular in France, has made a comeback due to the demand for biodegradable materials. The crutch tip, commonly found in many pre-rolls, reflects the growing popularity of paper filters. The filter plugs are attached to the cannabis rod by a tipping paper. This tipping paper offers an excellent opportunity for product customization with various colors and logos.

© Körber Technologies

Material Preparation and Airflow Control
Drawing from the tobacco industry’s experience, cannabis production benefits from techniques like resting and cooling to prepare materials for downstream processes. Blending, initially met with skepticism, can however standardizes cannabis characteristics, ensuring a consistent and enjoyable smoking experience, especially with psychoactive substances. With 75 years of expertise in tobacco preparation machinery, Körber applies this knowledge to refine the cannabis preparation process.

Airflow control is a critical factor in mastering the smoking experience. Cigarette companies have perfected the ideal combination of product hardness and airflow to ensure a slow, enjoyable burn. The continuous cigarette production principle, coupled with meticulous filler preparation, enables cannabis companies to achieve similar metrics. Perforated tipping paper or online perforation enhances airflow and can be used in case a lighter taste wants to be achieved.

About Körber
The Körber Group, with over 12,000 employees worldwide, provides machinery and solutions across pharmaceuticals, tissue, and tobacco industries. Körber Logistics offers automated warehouse and parcel handling solutions, while Körber Digital provides AI-based solutions. Körber Technologies (formerly Hauni Maschinenbau), with over 4,000 employees, leads in tobacco machinery and solutions. For over three years, Körber has offered pre-roll makers tailored for the cannabis industry. The compact TFM machine efficiently fills pre-made cylindrical tubes, which are significantly more cost-effective than cones, at 80 cpm. Beyond this, CANTOS and NANO-H are the machines using the continuous cigarette making principle. Körber’s pre-roll makers handle high-THC material and industrial hemp with precision and Körber assist customers in optimizing the entire production process, from material preparation to production flow, as well as the with the selection of the materials (tipping paper etc.).

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USDA Awards $600K Grant to Study How Hemp Genetics Affect Cannabinoid Production

9/28/2023

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Virginia Tech’s College of Agriculture and Life Sciences was awarded a $600,000 U.S. Department of Agriculture grant to study the regulation of biosynthetic pathways for cannabinoid production. The research aims to better understand the pathway processes that could allow for better selection for, or modification of, plants with particular cannabinoid content, which could increase profit and reduce risk for growers as well as advance further use of cannabinoids in medical treatments. 

The researchers’ objectives are to study the gene regulatory networks that govern cannabinoid biosynthesis and to measure the effect of manipulation of the regulation on the metabolic profile of cannabis. This work could make possible a generation of new varieties, either through conventional or new plant breeding technologies, with enhanced, reduced, or abolished production of specific cannabinoid compounds, the college said in a press release. 

The project is led by Bastiaan Bargmann, assistant professor in the School of Plant and Environmental Sciences and affiliated faculty member with the Fralin Life Sciences Institute. It will be performed in collaboration with the Institute for Advanced Learning and Research in Danville, Virginia, and Canada’s York University. 

The U.S. legalized industrial hemp at the federal level in 2018 via the Farm Bill, a package of legislation that gets passed by Congress roughly every five years.

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New York Attorney General’s Office Issues Stay in Leafly’s Challenge on Third-Party Marketing Ban

9/28/2023

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The New York Attorney General’s Office last week agreed to a stay in cannabis technology company Leafly’s legal challenge to the state’s third-party marketing ban. The stay effectively blocks the state from enforcing the prohibition on Leafly, but not other third-party marketers.  

In a statement, Yoko Miyashita, CEO of Leafly, said that while the firm is “very pleased” with the decision, the company remains “concerned that the Office of Cannabis Management’s stance towards third-party platforms deprives consumers and licensed cannabis retailers with important tools that help them navigate legal cannabis.”  

“We’ll continue to work toward sensible regulations and are hopeful for a solution that empowers small businesses and supports consumer education and choice, while still protecting the public health, safety, and welfare of the people of New York.” — Miyashita in a press release 

The order does not end the lawsuit, which alleges that state regulators unfairly targeted third-party platforms in a misguided attempt to restrict the way retailers may market or promote their business and products and prevent price-shopping consumer behaviors. The lawsuit alleges, that the adoption of these regulations by the state is both arbitrary and capricious and a violation of the U.S. and New York constitutions. 

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North Carolia House Passes Consumable Hemp and Kratom Regulation Bill

9/28/2023

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House lawmakers in North Carolina last week unanimously passed a bill to regulate hemp-derived consumables and kratom. The measure would require businesses to get licenses to sell the products, includes testing provisions, and prohibits sales to anyone under 18 years old.

Eric Stahl, of The Burnt Pot Cannabis Café and Modern Apothecia, told WNCN that the law “is a perfect example” of the Legislature “trying to work on behalf of small business to create a platform” that allows current hemp industry operators to continue business. Stahl did, however, note that if the final version of the law caps THC levels at 3 milligrams it would likely remove “in the range of 95%” of products his business currently carries from store shelves.

“What we need to do is make sure that all the players are acting fairly, that these products are being tested correctly, and that we’re not allowing, most importantly, not allowing intoxicating products to wind up in the hands of children.” — Stahl to WNCN

The law does not include criminal penalties for product violations by retailers but would impose a $500 fine for first-time violations, a $750 fine for a second violation within three years, a fine of up to $1,000 and a 30-day license suspension for the third violation within three years of the first violation, and fines up to $2,000 and either a one-year license suspension or license revocation for four or more violations within three years of the first violation, according to a bill summary.

The measure would make it a misdemeanor to supply hemp products to anyone under the age of 18. The bill includes a fine structure for selling kratom to underage individuals but includes misdemeanor charges for youths who misrepresent their age to purchase the products.

The measure is currently in the Senate Committee on Rules and Operations.

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SAFER Banking Act Passes Key Committee and Moves Next to Senate Floor

9/27/2023

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The Secure and Fair Enforcement Regulation (SAFER) Banking Act has passed the Senate Committee on Banking, Housing and Urban Affairs and moves next to the Senate’s floor for consideration. The bipartisan effort is being led by Sens. Jeff Merkley (D-OR), Steve Daines (R-MO), Kyrsten Sinema (I-AZ), Cynthia Lummis (R-WY), and Senate Majority Leader Chuck Schumer (D-NY).

The proposal seeks to normalize banking access for cannabis companies operating in states with legal markets.

“This legislation will help make our communities and small businesses safer by giving legal cannabis businesses access to traditional financial institutions, including bank accounts and small business loans. It also prevents federal bank regulators from ordering a bank or credit union to close an account based on reputational risk.” — The co-sponsoring senators, in a statement

The proposal looks a lot like the bipartisan SAFE Banking Act, which has been introduced and passed seven times so far in the U.S. House, but which always failed to progress in the Senate — even when Democrats had full control of both Congressional chambers. The new bill aims for stricter regulations at the federal level, prohibiting banks from terminating cannabis-related accounts without “valid reason,” or for denying services based on “personal beliefs or political motivations,” the CNBC reported.

In a press release, National Cannabis Industry Association CEO Aaron Smith said:

“The committee’s approval of the SAFER Banking Act which gives hope to thousands of compliant, tax-paying businesses desperately trying to access the basic financial services other businesses take for granted. This uniquely bipartisan legislation has the potential to save lives and help small businesses; it’s time for Congress to get it to the president’s desk without further delay.”

So far, 39 U.S. states have passed legalization policies for adult use or medical purposes, and every single legal market has struggled with access to traditional banking services due to the plant’s ongoing federal prohibition.

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Detroit Psychedelic Church Raided by Police

9/27/2023

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Detroit Police last week raided the city’s first “psychedelic church,” operated by Soul Tribes, which offers psilocybin mushrooms as a holy sacrament, the Detroit Metro Times reports. The raid came days after the Metro Times published a cover story about the church. 

Owner Shaman Shu believes the raid violates Proposal E, which was approved by voters last year and decriminalized the possession of entheogenic plants and fungi, including psilocybin mushrooms, in the city. The church includes a “sacrament center” which sells dried psilocybin mushrooms, capsules, and gummies. 

According to a search warrant obtained by the Metro Times, the action included the seizure of all narcotics, including “psychedelic mushrooms” from the “illegal dispensary inside the purported church” along with “all books, records, receipts, notes, ledgers, and other papers relating to the procurement, distribution, storage, and transportation of controlled substances.” 

Shu told the Metro Times that officers seized more than $700,000 in psilocybin mushrooms intended for therapeutic use and ordered the church’s closure. Under Proposal E, therapeutic use of entheogenic plants and fungi was also decriminalized 

“They stole ancient sacrament. It was prayed over and meditated over. It’s a healing sacrament… They blocked my property down without due process. You can’t do that. … They think we’re not a church. But that’s why the federal government was created, to separate church and state so that cities do not opine on what churches are [and] what ministries are. We’re a ministry and a religious organization.” — Shu to the Metro Tims 

Detroit Police Department Sgt. for Media Relations Jordan Hall told the Metro Times that the raid “was due to a lack of licensing and the amount of substances that were distributed.” 

Mayor Mike Duggan’s office told the Metro Times that “It is the law department’s position that this local ordinance, despite its intent, does not override state law, which considers psilocybin to be a controlled substance” and that “the city ordinance itself does not allow for the sale or distribution of psilocybin.” 

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MORE Act Reintroduced in Congress

9/27/2023

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Congressional Democrats last week reintroduced the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which would decriminalize cannabis federally and implement criminal justice reforms. The measure would also impose a 5% federal cannabis tax on sales to fund three grant programs. 

The bill passed the House in 2020 and 2022 but was not taken up in the Senate. 

In a statement, Rep. Earl Blumenauer (D-OR), founder and co-chair of the Congressional Cannabis Caucus, described the measure as “the only comprehensive cannabis reform that has passed either chamber of Congress – twice.  

“It is the gold-standard, reflecting the concerns of businesses, researchers and impacted communities alike.” — Blumenauer in a press release 

Rep. Sheila Jackson Lee (D-TX), chair of the Subcommittee on Crime, Terrorism, and Homeland Security, added the bill would “take meaningful steps to address the harmful impacts of the federal prohibition, particularly on communities of color, and align federal law with that of many states.”  

The measure would also open up Small Business Administration funding for legitimate cannabis-related businesses and service providers, provide non-discrimination protections for cannabis use or possession, including, prohibiting the denial of any federal public benefit (including housing) based on the use or possession of cannabis, or prior cannabis-related conviction and provides that the use or possession of cannabis, or prior cannabis-related conviction, will have no adverse impact under the immigration laws. 

The measure is backed by the Leadership Conference on Civil and Human Rights, Drug Policy Alliance, NORML, Better Organizing to Win Legalization, and Minorities for Medical Marijuana, the Center for American Progress, and Students for Sensible Drug Policy. 

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New York Lawmakers Urge Gov. to Sign Bill Allowing Cannabis Farmers to Sell to Tribes

9/27/2023

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Nearly 70 New York lawmakers on Tuesday sent a letter to Gov. Kathy Hochul (D) urging her to sign the Cannabis Crop Rescue Act which would allow state-licensed cannabis farmers to sell their products to dispensaries located on Tribal lands in the state. The law passed the Legislature in June but Hochul has yet to sign it into law. 

New York’s adult-use rollout has been plagued by lawsuits, including one that has led to an injunction against any licensing under the current “conditional” rules that provided the first batch of retail licenses to social-equity applicants; however, in August, a judge found that the state broke its own rules by not including service-disabled military veterans in the Conditional Adult-Use Retail Dispensary program. Shortly after the decision, regulators announced they planned to open general licensing on October 4, which would likely end the legal challenge by veterans and related injunction.  

In the letter to Hochul, the lawmakers note that “there are over 200 cannabis farmers trying to sell their crops but only 23 dispensaries open statewide,” which “has resulted in more than 250,000 pounds of unsold cannabis.” 

During a Cannabis Control Board meeting earlier this month, regulators heard from farmers who complained about the slow rollout and the financial impact on their farms. 

“Farmers who took out loans and leveraged all their assets to cultivate these crops are demoralized and facing financial disaster unless we act quickly to provide them with an alternate market,” the lawmakers said in the letter. “Allowing these farmers to sell their cannabis to purchasing agents from New York’s Tribal Nations can be a short-term solution. These Tribal dispensaries would benefit from access to a source of local, safe, laboratory-tested products. Farmers would benefit from a new pathway to sell their products. Along with the Cannabis Grower’s Showcases, it could be the financial lifeline they need right now.” 

In a statement, Senate Agriculture Chair Michelle Hinchey (D) noted that “Many New York cannabis farmers are facing dire financial straits with unsold crops from last year, and time is running out to get products to market before they expire.” 

Assembly Agriculture Chair Donna Lupardo (D) added that the state owed a debt to the cannabis farmers who “took a risk” to grow the crop. 

“Many NY farmers are distressed for a number of reasons, but none more than this group,” she said in a statement. “Opening a one-time window for sales to Tribal Nations will provide some financial relief, while we are working on others means of recompense. There really is no time to waste, as this crop is degrading the longer it goes unsold.” 

Earlier this month, the Office of Cannabis Management said it would open 1,500 licenses when the window opens in October.  

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House Committee Approves Bill to End Federal Ban on Cannabis Consumers Getting Security-Sensitive Jobs

9/26/2023

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The House Committee on Oversight and Accountability last week voted 30-14 to advance a measure that would allow cannabis consumers to qualify for security clearances and become federal employees, GovExec reports. The bipartisan legislation, introduced by Reps. Jamie Raskin (D-Md) and Nancy Mace (R-SC), would end the practice of denying security clearances for federal employees who admit to past cannabis use. The proposal would also allow applicants who have been previously denied a federal job or security clearance in 2008 or later to seek reconsideration of that decision. 

Raskin indicated that he introduced the measure after a constituent said they were denied a job opportunity at the Centers for Medicare and Medicaid Services a week before their start date because they had admitted to using cannabis for medical purposes. 

“Despite the rapid expansion of all of these laws across the country, thousands of our constituents every year are being denied a federal security clearance or are losing the chance of obtaining federal employment solely because they admit honestly to having used marijuana in the past, even when it was completely lawful for them to do so.” — Raskin via GovExec 

When it was first introduced, the measure also barred the government from denying applicants for federal jobs or security clearances based on current cannabis use but the committee removed those provisions before approving it.  

Mace defended attacks from opponents of the bill who argue that cannabis is a dangerous drug, countering that if lawmakers are “concerned about dangerous substance use or abuse” they “ought to look first to alcohol, alcoholism and the addiction that runs there.” 

The measure moves next to the full House for consideration.  

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Cannabis Legalization Bill Introduced in Wisconsin

9/26/2023

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Two Wisconsin Democrats last week introduced bicameral legislation to legalize cannabis in the state. The measure was introduced in the Senate by Democrat Leader Melissa Agard, while the measure was introduced in the House by Rep. Darrin B. Madison. 

In a press release, Agard noted that “69% of Wisconsinites, including a majority of Republicans, support the full legalization of marijuana.”  

“I’ve said this time and time again – we know that the most dangerous thing about cannabis in Wisconsin is that it remains illegal. For the past decade, I have worked to undo Wisconsin’s antiquated and deeply-unjust marijuana policies and put our state on a prosperous path forward. This proposal will not only allow Wisconsin to right past wrongs, it will bring us in line with our neighbors and create countless opportunities to grow our economy and attract people to our state. Right now, we are seeing our hard earned money go across the border to Illinois, Michigan, and Minnesota to the tune of tens of millions of dollars each year. That is money we could be reinvesting to help support our friends and neighbors and make our state a place where people want to live, work, and play.” — Agard in a statement 

Madison added that cannabis legalization “is a matter of public safety and racial justice” in Wisconsin.   

“People in Wisconsin indulge in cannabis use, and deserve the ability to buy safe cannabis and use it responsibly without being criminalized. According to the ACLU, Black people were 4.24 times more likely to be arrested than white people in Wisconsin during 2018,” Madison said in a statement. “Similar disparities exist in convictions, leading to immeasurable harm to black communities in Wisconsin. The bill we’ve introduced today lays a solid foundation for those that have been harshly convicted for non-violent possession charges and the ramifications of those convictions.” 

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Pennsylvania Senate Passes Bill to Allow More Licensed Cannabis Businesses to Sell Directly to Patients

9/26/2023

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The Pennsylvania Senate last week passed a bill that would allow more licensed medical cannabis cultivators and processors in the state to sell directly to patients, PennLive reports. The measure passed 44-3 with bipartisan support. 

Under current state law, no more than five of the state’s 25 grower/processor license holders are allowed to act as dispensaries – all others must sell their products to a dispensary, which lawmakers say has created an imbalance in the system and created a near-monopoly.

State Sen. Chris Gebhard (R), the bill’s sponsor, suggested that the measure could be amended in the House to allow home cultivation by registered patients and perhaps full legalization provisions. However, state Sen. Dan Laughlin (R) told PennLive that if the bill “becomes a vehicle for adult use” he doesn’t believe it would pass the chamber.

“However, I think if they do add home-grown to this bill, it would strengthen the bill and I believe that we would be able to get it through this chamber as well.” — Laughlin to PennLive 

State Sen. Camera Bartolotta (R) told PennLive that she voted ‘no’ on the bill because it didn’t include home grow provisions.

“…I feel so strongly that we need to increase access to this medication for more Pennsylvanians by allowing them the option to grow a few plants at home,” she told PennLive.

State Sen. Sen. Sharif Street (D) added that he voted ‘yes’ to keep the measure alive but said “It is unconscionable that we continue to do this without addressing the issues that so many patients are having with cost, and the best way to do that is to allow home-grown in small amounts.”

The measure is currently in the House Health Committee.

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NCAA Committee Recommends Removing Cannabis from Banned Substances List

9/25/2023

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The NCAA Committee on Competitive Safeguards and Medical Aspects of Sports (CMAS) last week recommended removal of cannabis from its list of banned substances for all three divisions, calling instead for a “robust educational strategy.” The organization first announced in June they were considering the reforms. 

The committee concluded that removing cannabis from its testing protocols acknowledges the ineffectiveness of existing policy, which includes banning, testing, and penalizing; affirms the role of the NCAA drug-testing program to address only performance-enhancing substances; and emphasizes the importance of moving toward a harm-reduction strategy that prioritizes education and support at the school level over penalties. 

In a statement, James Houle, committee chair and lead sport psychologist at Ohio State, said that “When making a decision on an important topic like this, we agree that the membership should have an opportunity to vote on the final outcome.”  

“We are recommending a big shift in the paradigm when it comes to cannabinoids. We want to modernize the strategy with the most up-to-date research to give schools the best opportunity to support the health of student-athletes.” — Houle in a press release 

The NCAA said the recommendation “aims to recenter student-athlete health while recognizing membership opinions and the shifting cultural and legal landscapes surrounding cannabinoids” and that it is “based on extensive study informed by industry and subject matter experts” including doctors, substance misuse experts, and membership practitioners. 

In 2022, the CMAS raised its cannabinoid thresholds that lead to a failed test from 35 to 150 nanograms per milliliter of blood, aligning it with the policies of the World Anti-Doping Agency.   

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Minnesota’s Newly Appointed Top Cannabis Regulator Steps Down After One Day

9/25/2023

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Minnesota’s head of the Office of Cannabis Management (OCM) stepped down on Friday – one day after she was appointed – following a report that her hemp business sold products that exceeded allowable THC levels, owned money to former associates, and had tens of thousands of dollars in tax liens, according to MPR News.

Erin DuPree, founder, vice president of sales and operations, and head of research and development of Loonacy Cannabis Co. was appointed by Gov. Tim Walz (D) on Thursday, but a subsequent investigation by MPR News-APM Reports uncovered that Loonacy had advertised products with THC content higher than what was legally allowed starting in July 2022 and had advertised vape products containing THC, which, at the time, were prohibited under the law.

In a statement announcing her resignation, DuPree pushed back on those claims, saying her company has “never knowingly sold any noncompliant product,” and that when she “became aware of them” she “removed the products from inventory.”

“Conducting lawful business has been an objective of my business career. However, it has become clear that I have become a distraction that would stand in the way of the important work that needs to be done.” — DuPree, in a statement, via MPR

In an interview with MinnPost following DuPree’s resignation, Walz admitted officials “got this wrong.”

“Not the finest hour,” Walz told MinnPost. “In this case, the process did not work.”

Walz added that DuPree was chosen because he wanted someone who understood Minnesota’s cannabis industry but that citizens expect regulators will “follow the rules.”

“I own this one,” Walz said, “we’ll get the right person in there.”

Charlene Briner, a senior Department of Agriculture official who has been serving as the interim OCM director, will continue to lead the agency in the absence of a full-time department chief.

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Illinois County Requiring Dispensaries to Warn That ‘Cannabis Use May Contribute to Mental Health Problems’

9/25/2023

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Cannabis dispensaries in McHenry County, Illinois are now required to display signs with a warning that “cannabis use may contribute to mental health problems” under “first-in-the-country” rules imposed by McHenry County State Attorney Patrick Kenneally, Axios reports. Businesses that don’t comply could face consumer fraud lawsuits from Kenneally.  

Kenneally defended the new order in a Chicago Tribune op-ed in which he suggests a “growing body of research” that “cannabis can … initiate and worsen depression, bipolar disorder, anxiety and suicidal ideation, especially in young people.” He further claims that “about half” of the county’s recent homicides “involve cannabis or cannabis-induced psychosis” and that “cases of driving while under the influence of cannabis have doubled.” 

In a statement to Axios, the Illinois Cannabis Regulation Oversight Office said Gov. J.B. Pritzker (D) was “disappointed to learn that the McHenry County state’s attorney prefers focusing on spreading disinformation instead of tackling the issues that actually keep residents safe.” 

“Legalizing adult-use cannabis has always been about justice, safety, and equity in Illinois,” the agency said in the statement. 

A group of Democratic state lawmakers, issued their own statement pushing back on Kenneally’s op-ed, saying he “carelessly conflates cannabis use with the most complex societal issues that our own Illinois researchers, institutions, and community leaders work collectively every day to further understand and improve upon.”  

“At best, Kenneally misleads weekend editorial readers,” the statement reads. “At worst, he continues an unfortunate tradition in American history of using hyperbole to vilify cannabis use and possession, including for medical purposes.” 

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Square Partners With Jane Technologies to Service Canadian Cannabis Industry

9/22/2023

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Payments processing firm Square announced this week that it was partnering with cannabis e-commerce company Jane Technologies to enter the Canadian cannabis market. Square — which is a subsidiary of Block Inc., and which was founded by Twitter co-founder Jack Dorsey — plans to launch its retail point-of-sale services for licensed dispensaries in Ontario first, according to a press release, with plans to expand to other provinces after having taken time to “get it right.”

Additionally, through its partnership with Jane Technologies, companies who sign up for Square’s retail payments system will also be able to utilize the former’s e-commerce platform for online sales.

Jane CEO Socrates Rosenfeld said that Square’s reputation as a global commerce platform “speaks for itself,” and the company is “thrilled to integrate the robust infrastructure of Square’s point-of-sale and APIs with the powerful Jane e-commerce platform to unlock a best-in-class omnichannel experience for Canadian cannabis retailers.”

Roshan Jhunja, Head of Retail at Square, said the company recognized the unique limitations facing cannabis retailers “when it comes to reliable and integrated commerce tools.”

“Sellers are looking for an easy-to-use, fully integrated omnichannel solution to help them run their businesses in person and online. We’ve been fortunate to partner with Jane to develop a robust online offering and encourage cannabis dispensaries to test our software, hardware and payment solution in person through our Early Access Program.” — Jhunja, in a press release

Canada became the first North American country to legalize adult-use cannabis in 2018.

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Republican Lawmakers Urge DEA to Reject Cannabis Reclassification

9/22/2023

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In a letter to Drug Enforcement Administration (DEA) Administrator Anne Milgram, 14 Republican lawmakers urged the agency to reject the Department of Health and Human Services (HHS) recommendation to reclassify cannabis from Schedule I under the Controlled Substances Act to Schedule III. 

“It is irresponsible for HHS to recommend that marijuana be removed from Schedule I. It would also be irresponsible for DEA to act on this recommendation,” the letter states. “Our country relies on DEA to enforce our nation’s drug laws. We ask you to uphold your mission by rejecting any effort to remove marijuana from Schedule I.”

The letter cites National Institute on Drug Abuse (NIDA) research that suggests that 30% of cannabis consumers have marijuana use disorder, claims that cannabis has higher THC content than 25 years ago, an American Academy of Pediatrics study that suggests a 1,375% increase in accidental cannabis edible ingestion by children under 6 between 2017 and 2021, and previous DEA denials of petitions to reclassify cannabis.

The letter contends that cannabis “does not have a currently accepted medical use,” and notes that the Food and Drug Administration (FDA) approved drugs that contain either natural or synthetic cannabis are non-intoxicating.

“The FDA has never approved marijuana as a treatment for any disease or condition,” the letter states.

The letter is signed by Senators James Lankford and Markwayne Mullin (OK), Michael Rounds (SD), Mike Crapo and James Risch (ID), Marsha Blackburn (TN), Ted Budd (NC), and Tom Cotton (AR), along with Representatives Pete Sessions (TX), Chuck Edwards (NC), Robert Aderholt (AL), Hal Rogers (KY), Earl “Buddy” Carter (GA), and Andy Biggs (AZ).

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Studies Find Many Maine Medical Cannabis Products Fail Adult-Use Testing Protocols

9/22/2023

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A study conducted by Maine’s Office of Cannabis Policy (OCP) found 45% of medical cannabis samples subject to the same testing as adult-use products would have failed the protocols for containing either pesticides, yeast and mold, or harmful microbes, the Portland Press Herald reports. A separate study by Nova Analytic Labs, one of the state’s four licensed cannabis testing labs, found that about 21% of medical cannabis samples would have failed the state’s adult-use testing panel.

The OCP study included 127 samples from the medical cannabis market and, of those, 57 would have failed under the adult-use testing regime, the report says. The Nova study included about 1,400 samples of medical cannabis which had a much higher failure rate than the samples collected from the adult-use market, which was 4% of 3,200 samples.

In Maine, medical cannabis is not required to be tested, while products from the adult-use market are.

Christopher Altomare, CEO of Nova, told the Press Herald that the medical cannabis samples were provided voluntarily by caregivers who were already choosing to test their products, rather than a randomized selection, so it’s likely the real percentage is much higher. He noted that 10% to 20% of Nova’s business comes from the medical market but they are testing for potency, not pesticides.

“We need thoughtful testing regulations in the medical market. At the end of the day, what we do is public and patient safety and I don’t feel that Maine patients are being adequately protected.” — Altomare to the Press Herald 

Medical cannabis sales in Maine topped $305 million in 2022. In August there were about 1,900 medical cannabis caregivers registered with the state. A report in April from OCP found that from the end of 2021 to the end of January 2023 more than 1,350 medical cannabis caregivers left the program.  

OCP is seeking to institute testing requirements for medical cannabis sold in the state but have faced pushback from caregivers who say the protocols would be costly. During a webinar on Tuesday, OCP Director John Hudak suggested the agency might begin requiring the testing of medical products. 

“If a business model is one in which producing clean cannabis is too costly, there’s something wrong with the business model,” he said. “We’re not going to focus on profits at the expense of patients’ health.” 

Hudak noted that despite being a registered medical cannabis patient, he doesn’t use medical cannabis in Maine because of the lack of testing. 

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Minnesota Appoints Head of Office of Cannabis Management

9/22/2023

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Minnesota’s newly appointed head of its Office of Cannabis Management (OCM), Erin DuPree, estimates that it will take about two or three years before the state launches adult-use sales, FOX 9 reports. DuPree was named to the post on Thursday but will officially begin her duties on October 2.  

“We don’t have to reinvent the wheel here. We’re lucky as the 23rd state to legalize, we can look back on the other 22 states and see what’s been good and what’s not been good and use that to help make policy here.” — DuPree via FOX 9 

DuPree is the founder, vice president of sales and operations, and head of research and development at Loonacy Cannabis Co. but indicated that she plans to divest herself from the business prior to her October start date at OCM.

In a press release announcing DuPree’s appointment, Gov. Tim Walz (D) noted DuPree has “direct experience in Minnesota’s hemp and cannabis industry and over 20 years of success in launching, managing, and growing businesses and organizations.”

“DuPree is a proven and effective leader,” Walz said in the statement, “who will be successful in standing up Minnesota’s new adult-use cannabis market and helping Minnesotans succeed in the industry.”

The agency last week posted nine new positions and will need about 150 employees total.

“It is an honor to join the Walz-Flanagan administration as the first director of the new Office of Cannabis Management,” DuPree said in a statement. “I look forward to working closely with all of the legislators, stakeholders, and advocates who worked so hard to pass this new law and am committed to the work of ensuring Minnesota’s new adult-use cannabis industry will grow and thrive for years to come.”

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