Cannabis Sales in Massachusetts Total $5B Since Adult-Use Launch

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Adult-use cannabis sales in Massachusetts reached $5 billion on August 31 after record-breaking monthly sales in June, July, and August, according to the state Cannabis Control Commission (CCC). Sales surpassed the $4 billion mark just eight months prior to hitting $5 billion, which the CCC said makes the period the shortest it’s taken for Massachusetts businesses to generate another $1 billion dollars in gross sales.

Cannabis sales commenced in Massachusetts in 2018. So far this year, adult-use cannabis sales have totaled more than $1 billion. 

In a statement, Commission Executive Director Shawn Collins noted that the milestone comes even as Maine, Rhode Island, and Connecticut also experienced record sales over the summer.  

“Demand for tested, quality cannabis products remains strong in the region, and consumers shopping in other states have not impacted Massachusetts’ success.” — Collins in a press release 

The agency also noted that, to date, just five cannabis retailers in the state have surrendered or allowed their license to expire, while just 16 of all cannabis businesses have either let their license expire, surrendered their license, or had it revoked. The state currently has 317 cannabis retailers, nine delivery couriers, eight delivery operators, and one microbusiness with a delivery endorsement.  

The CCC notes that it is also currently undergoing a regulatory review to implement new social equity rules and regulations. The agency has until November 9 to issue the updated program regulations.    

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Poll: 60% of Floridians Back Adult-Use Cannabis Legalization

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A poll released last week from the University of South Florida and Florida Atlantic University found that 60% of respondents back adult-use cannabis legalization in the state, while 83% backed the state’s current medical cannabis program. 

The survey found about 29% of respondents wanted cannabis to remain illegal for adult use in the state with about 11% unsure.  

The poll also found that less than half – 45% – of respondents believed medical cannabis “is being abused” (50% disagreed) with 39% saying medical cannabis is too easy to obtain in the state (57% disagreed), and 40% believing there should be “harsh penalties” for sharing medical cannabis (52% disagreed). Another 44% of those surveyed said medical cannabis should be taxed (45% opposed).    

In June, the campaign seeking to put an adult-use cannabis question to Florida voters in 2024 surpassed the signature threshold to get the issue on ballots; however, the initiative is being challenged by state Attorney General Ashley Moody over concerns that, if approved, cannabis consumers would face “devastating criminal liability under federal law.” In a brief filed on behalf of Moody last month, Solicitor General Henry Whitaker argued that the ballot summary “misleads in ways that, though sometimes subtle, are likely to influence voters – and to do so in a way that entrenches the sponsor’s monopolistic stranglehold on the marijuana market to the detriment of Floridians.”

The state Supreme Court will ultimately determine whether the ballot initiative covers only a single subject as required under state law, is not confusing to voters, and whether it will allow it on ballots.

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Lawsuit Filed Challenging Virginia’s THC Limits on Hemp Products

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A lawsuit challenging Virginia’s newly imposed THC limits on hemp products in the state was filed in federal court last week, the Virginia Mercury reports. The plaintiffs include two hemp businesses and a private citizen who argue that the new restrictions, which took effect July 1, cause financial harm to hemp businesses and interfere in interstate commerce.  

The law, passed in February, set the maximum amount of THC in hemp products at 0.3% concentration and 2 milligrams per package, and imposes fines on businesses that break the rules.  

The lawsuit was filed by hemp retailer Northern Virginia Hemp and Agriculture, North Carolina-based hemp producer and distributor Franny’s Operations, and Rose Lane, a hemp customer. The lawsuit argues that, if not halted, the law will cause millions of dollars of irreparable harm” and “cause the Banned Products to be unavailable in the Commonwealth, exacerbating potential health problems to thousands of Virginians.” The plaintiffs claim the law is counter to the U.S. Constitution’s supremacy clause.  

The lawsuit contends that the state’s definition of legal hemp conflicts with the federal definition – cannabis with less than 0.3% of delta-9 THC content. Virginia’s law defines legal hemp products as those with less than 0.3% total THC content, which includes not just delta-9 THC but also delta-8 THC and all other natural and synthetic isomers combined, the report says. 

In an interview with the Mercury, Jason Amatucci, president of the Virginia Hemp Coalition, which helped find plaintiffs and fundraise for the lawsuit, described the law as “irresponsible” and taking “a straight sword” to “cut the industry down.”  

A study published in March – prior to the bill’s passage – by Whitney Economics found that the crackdown could cost the state more than 4,000 hemp industry related jobs.  

Virginia lawmakers in 2021 passed a bill to legalize cannabis for adult use in the state; however, in 2022 Republican Glenn Youngkin was elected governor and his administration has no plans to facilitate the launch of the program.  

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California Increasing Incentives to Get Municipalities On Board with Cannabis Licensing

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The California Department of Cannabis Control (DCC) is increasing eligibility for its Local Jurisdiction Retail Access Grant (LJRAG) along with the award amounts for municipalities that are given grants under the program. 

The LJRAG program is part of the state’s efforts to expand legal cannabis access in jurisdictions where adult-use cannabis operations do not currently exist. The Phase II funding is tied to the local jurisdiction’s issuance of local permits or licenses authorizing cannabis retail. Under the revised Phase II guidelines, eligible local jurisdictions may apply for funding regardless of whether they participated in Phase I. The DCC said the new guidelines will allow more than 300 cities and counties to pursue funding in Phase II. 

The state will award $15 million in grants under the Phase II program. Phase I awarded $4.1 million in grants to 18 cities and counties throughout the state.  

In a statement, DCC Director Nicole Elliott said “There are still many locations throughout the state where cannabis usage is notable, but existing consumers do not have convenient access to legal retail cannabis.” 

“We know that cannabis consumers often make purchasing choices based on convenience, so sufficient access to legal retail reinforces extremely important consumer safeguards.” — Elliot in a press release 

Phase II eligible applicants include jurisdictions that prior to July 1, 2022, did not have a cannabis retail licensing program in existence; have a plan to develop and implement a cannabis retail licensing program; and have issued one or more cannabis retail licenses to cannabis businesses within the jurisdiction of the city or county pursuant to that program. 

The Phase II funding amounts for the issuance of a retailer license and equity retailer license have been doubled. Jurisdictions may now receive $150,000 per eligible retailer license and $300,000 per eligible equity retailer license issued. The previous amounts were $75,000 and $150,000, respectively. 

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High Times Intellectual Property Acquired By Canadian Firm

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Longtime cannabis and counterculture company High Times last week entered an intellectual property partnership with Canada-based Lucy Scientific. The deal includes all of High Times’ existing licensing agreements, including rights to the High Times magazine, Cannabis Cup, 420.com brands, and respective domain names.  

Lucy Scientific Discovery Inc. (NASDAQ: LSDI) is a Vancouver, British Columbia, Canada-based Nasdaq-listed company with holdings and operations in a variety of psychotropic businesses. The company holds a Controlled Drugs and Substances Dealer’s License granted by Health Canada’s Office of Controlled Substances. 

Under the deal, Lucy will issue 19.9% of its outstanding stock to High Times and make payments semi-annually for the next five years based on EBITDA generated from the acquired IP. Lucy will license the right to operate retail stores and manufacture and sell THC products in the U.S. back to High Times, in return for a license fee of $1 million per year, increasing to $2 million per year upon federal legalization. The company expects the acquisition of High Times IP to add at least $10 million of revenue and $5 million of EBITDA to its 2024 results. 

In a statement, Richard Nanula, CEO and executive chairman at Lucy, said the firm expects the partnership “to drive high margin revenue quickly and sustainably across the cannabis sector around the world.” 

“This is a great opportunity to grow the market presence of the nearly 50-year-old High Times brand globally through licensing and online distribution. We are confident that this opportunity can add significant value for our shareholders.” — Nanula in a press release 

Adam Levin, executive chairman of High Times, added that “there is no better partner than Lucy” to drive the brand forward. 

“This transaction will open up tremendous new opportunities to grow and expand the High Times brand,” he said in a statement.  

High Times currently owns eight retail cannabis stores and several retail brands. 

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Missouri Combined Cannabis Sales Surpass $1B

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Combined cannabis sales in Missouri last week topped the $1 billion mark, according to state Division of Cannabis Regulations data outlined by KRCG. Medical cannabis sales in the state commenced in October 2020, while adult-use sales began last February.  

Since the launch of adult-use sales on February 3 through the end of May, adult-use sales have totaled $256.2 million while medical cannabis sales have totaled another $94 million, the report says.  

According to the Missouri Cannabis Trade Association (MoCannTrade), there are now more than 14,800 direct cannabis industry jobs in Missouri. The trade group also notes that more than 31,000 cannabis-related criminal records have also been automatically expunged. Missouri was the first state to include automatic expungement of non-violent cannabis crimes as part of its legalization initiative.  

The state’s cannabis industry was rocked last month by the recall of nearly 63,000 cannabis products that regulators said were not tracked in the state’s seed-to-sale tracking system.  

The state’s Auditor’s Office also announced last month that it planned to investigate the state’s adult-use and medical cannabis programs to make sure they are operating legally. That audit will review a five-year period from 2018 through June 30, 2023. Auditor Scott Fitzpatrick noted that the cannabis legalization amendments “represent some of the most substantial changes” to the state’s constitution “in recent memory” and “now make up more than one-fifth of the language” in the state constitution.   

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California Sues Multiple Hemp Companies Claiming State Law Violations

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California is suing several hemp brands throughout the U.S. claiming violations of the state’s Proposition 65 rules, which require products “known to the State to cause cancer or reproductive toxicity” to carry a “clear and reasonable” warning label. Although the 2018 Farm Bill effectively legalized hemp containing 0.3% THC or less at the federal level, in California’s legal system, delta-9 THC is considered a chemical “known to cause harm to the developing fetus” and having any amount present makes a product subject to the Prop 65 rules.

The state is also accusing the businesses of unfair practices for selling “inhalable hemp products,” which are prohibited under a 2021 law clarifying the state’s hemp rules. The lawsuit claims the companies sold inhalable hemp products through their websites to customers in California, violating state law.

“This complaint seeks to remedy the defendants’ illegal sale of inhalable hemp products and their failure to protect consumers from highly toxic chemicals that are present in all commercial hemp products and their failure to warn consumers about the risks these products pose,” the lawsuit states. 

The companies targeted by the lawsuit include:

  • Oregon-based G.E.T. Agriculture LTD
  • Nevada-based Hempacco Company, Inc.
  • California-based Cheef Holdings
  • Wyoming-based IHF Online LLC
  • New Mexico-based Eagle Moon Farm, LLC and EMH Wholesale
  • Massachusetts-based Berkshire CBD
  • Vermont-based Berkshire Farm Collective

In a conversation with Ganjapreneur, CEO of Hempacco Company, Inc. Sandro Piancone stated that the company does not sell products to California consumers and that the company was in full compliance with Prop 65.

The other brands named in the suit did not immediately respond to a request for comment but this article will be updated if and when they do. The companies face potential penalties of up to $1,000 for each sales violation, $2,500 per day for each violation of the Prop. 65 Warning law, and $2,500 for each violation of the state’s unfair practices law.

The lawsuit was filed on August 31 in the Superior Court of Alameda County. To view a copy of the filing, click here.

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California Lawmakers Give Final Approval to Psychedelic Plant and Fungi Decriminalization Bill

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California lawmakers on Thursday gave final approval to a bill to decriminalize personal possession and use of psilocybin mushrooms and several plant-based psychedelics including DMT and mescaline for adults 21-and-older. The measure passed 21-3-6 and moves next to Gov. Gavin Newsom (D) for his signature. 

The legislation also requires the California Health and Human Services Agency to convene a workgroup to study and make recommendations on the establishment of a framework governing therapeutic use, including facilitated or supported use, of the substances. The bill requires the workgroup to send a report with its recommendations to the legislature on or before January 1, 2025, according to the bill text. 

Two other states, Oregon and Colorado, have also reformed state laws related to possession of psychedelic plants. In November 2022, Colorado voters approved a ballot question to decriminalize personal possession of psychedelic plants and fungi and establish a regulated therapy system to provide people with therapeutic access to the substances. 

In 2020, Oregon voters approved a ballot question to decriminalize possession of all drugs, including psychedelics and another to establish a regulated psilocybin therapy system. 

In 2020, Washington, D.C. voters approved a measure to decriminalize and deprioritize the possession and use of psychedelic plants and fungi with 76% voter approval.  

The City Councils of Oakland, Santa Cruz, Cruz and San Francisco have already passed resolutions deprioritizing the enforcement of the possession and use psychedelic plants and fungi, effectively decriminalizing in those cities.  

Since June 2019, the cities of Ann Arbor, Michigan, and Somerville and Cambridge, Massachusetts have each decriminalized the possession and use of psychedelic plants and fungi at the local level.  

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Eastern Band of Cherokee Indians Legalizes Cannabis

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Citizens of the Eastern Band of Cherokee Indians (EBCI) on Thursday voted to legalize cannabis, WSOC-TV reports. The vote was 2,464-1,057, according to the unofficial poll results.  

EBCI is the only territory in North Carolina where cannabis is legal. In July, North Carolina House Speaker Tim Moore (R) said that the medical cannabis legalization bill being considered by lawmakers was likely dead for the session and the proposal has not gotten any additional movement in the legislature. 

Workers near Cherokee told WSOC-TV that they have been growing cannabis plants for the last year preparing for the tribe to enact the reforms, they estimate that they have more than 4 tons of plants. ECBI has 57,000 acres of land inside North Carolina. 

The tribe legalized medical cannabis in 2021 and the first medical cannabis dispensary is expected to open in the fall, EBCI Secretary of Agriculture and Natural Resources Joey Owle told Blue Ridge Public Radio. 

Earlier this month, U.S. Rep. Chuck Edwards (R-NC) introduced legislation to withhold some federal funds from states and tribes that allow adult cannabis use. The law is a reaction to the planned vote by EBCI. The action would not apply to states and tribes that legalize or have legalized cannabis for medical use. 

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4th Annual Black Cannabis Week Amplifies the Black Experience and Fosters Equity in Cannabis

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Virtual and In-Person Programs – September 17-24, 2023 – Black Cannabis Week (BCW) returns for the 4th edition of this transformative virtual global event amplifying the Black experience in cannabis, September 17-24, 2023. BCW will culminate with the in-person free DACO Cannabis Opportunities Conference in partnership with Pennsylvania State Senator Sharif Street, on September 22-23, 2023 at the prestigious Temple University Lewis Katz School of Medicine.

The DACO Cannabis Opportunities Conference serves as an unparalleled platform that provides educational and informational experiences including panels, engaging speakers, and legal and career support. In its 6th year, the conference remains free to attend and offers entrepreneurs, investors, job seekers, adult patients, policy makers, advocates, and the “cannabis curious” a chance to gain priceless insight into opportunities in the industry, network and develop solutions for making cannabis more equitable.

“Black Cannabis Week has grown exponentially over the past years, driven by our commitment to genuine access and opportunities for all. As a driving force in the cannabis industry, our mission with BCW and the DACO Cannabis Opportunities Conference is to amplify Black voices and create an inclusive space for wellness, innovation,, and restorative justice,” shares Cherron Perry-Thomas, Co-Founder and Director of Social Impact at The Diasporic Alliance for Cannabis Opportunities (DACO).

Highlights of the 2023 BCW program include: Rooted & Invested Pitch Contest, DACO 2023 RISE UP Award to highlight Black centering advocate(s), groups, and businesses working to transform the cannabis industry’s current norms, Elevated Expressions: An Art Encounter, the Homecoming Activation, a showcase of licensed cannabis suppliers of color, and Keynote Speaker, Gary Chambers Jr., a Baton Rouge native and dedicated advocate for social justice and community upliftment.

Registration is now open for the DACO Cannabis Opportunities Conference and applications for Black Cannabis Week vendors, and sponsors will be accepted through September 8.

Learn More & Register Now:
linktr.ee/blackcannabisweek
www.blackcannabisweek.com

Black Cannabis Week Locations:
Black Cannabis Week Virtual Events
Sunday, September 17 through Thursday September 21,2023

Free 2-Day Gathering at Temple University School of Medicine
Friday/Saturday: Temple University, Lewis Katz School of Medicine 3500 N. Broad Street Philadelphia, PA 19140

For media inquiries and interview requests, contact:
Muhammida El Muhajir
WaxPrint Media
muhammida@waxprint.media
215-607-4223

 

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Josh Kesselman: How RAW Papers Went from Niche Product to Global Phenomenon

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Josh Kesselman is the founder and CEO of RAW®, a rolling paper brand that has become a favorite of cannabis smokers around the world, from celebrity musicians to everyday tokers. In this interview, Josh discusses how cannabis legalization has impacted the rolling paper and smoke shop industries, how RAW was able to build an audience using guerilla marketing and word of mouth in the days before social media, and how he came to realize that what he originally thought was a niche-focused product actually had widespread appeal.

Read the full interview below!


Ganjapreneur: Having sold rolling papers for decades, how would you say that the spread of cannabis legalization in recent years has affected the rolling paper industry?

Josh Kesselman: One of the biggest changes that helped RAW was the shift of the market. It finally broke up the stranglehold that mega tobacco had on convenience stores. Some convenience stores – especially large chains – would only carry rolling papers from one manufacturer. And that would block all the other brands out of the marketplace and decrease competition. With legalization, it shifted the market because people began going to new places to get their rolling papers and get their smoking supplies. By doing that alone, it shifted into more of an open marketplace. My belief is that whenever we have an open marketplace, RAW wins. Because I believe RAW has the better product. And I think that’s the way competition should always be – whoever has the best product, wins. Not just the person who’s able to get someone to sign an exclusive agreement.

I liked how legalization changed consumer behavior, in that they started looking for better quality. They started becoming much more focused on having the ultimate, best experience. I think that’s what has caused RAW to really blow up with success – the shift in perception from getting what’s cheapest, to getting what’s best.

How has legalization impacted the smoke shop industry in states that have created regulated cannabis markets? Are these businesses finding it difficult to compete with dispensaries?

It depends. Some have thrived because they’re near a dispensary. Many dispensaries don’t often carry the whole smokeshop array of goods, especially the big chain dispensaries who are really very limited in what they carry. So for some smokeshops, it’s an opportunity to thrive really just by proximity. There’s a dispensary here in Arizona with a smokeshop next door. And I think they’re owned by the same company, and the smokeshop just kills it. People get their material from the dispensary, and then they go next door and get all their smokeshop items. So it definitely hurts some stores, but it also creates opportunity for others.

Obviously, taste varies widely among individuals as well as across demographics and regions, but in general, are there some qualities that people who smoke cannabis tend to look for in a rolling paper vs. people who roll their own cigarettes?

Sometimes yes, sometimes no – it depends! There’s an older segment of tobacco smokers who really like these antiquated bright white, bleached papers with chalk in them. It gives you a whiter ash on the end of your cigarette. There is that segment that still exists. I believe a cannabis smoker is even more attuned to quality and is going to enjoy a slower-burning unbleached rolling paper even more. So for the overall market, legalization has really shifted everyone’s focus towards quality. Not just quality in terms of how it burns, but the flavor it imparts to you. Most people are looking for much more of a minimal natural flavor. I think consumers are increasingly less likely to choose rolling papers with chalk in them, than they were in the past because I believe they can taste it. In my experience, chalk kind of changes the flavor. It gives you that whiter ash at the end of your smoke. However you don’t need that when you’re smoking good weed. You want to experience the weed itself without something coming between you and it. You want a more raw experience.

These days, “influencer” marketing is a big deal for B2C brands looking to get the word out about their products. But when you founded RAW, social media was in its infancy. How did you go about building influence and reputation in the early days?

The key for us was smoke circles. We gave away a lot of free product in order to get it into people’s smoke circles. Back then, almost every rolling paper on the market was bleached-white. Getting people to switch to a completely different type of paper that didn’t have chalk in it and wasn’t bleached out – it was something they were very hesitant to try. Their grandfather and great-grandfather and so on had probably all smoked that typical bleached-white chalked paper, and now we were trying to get them to shift it up. So when I came out with RAW, we needed to establish the market. So what I did was I gave a lot of it away, because I knew once it got into the smoke circles, once they tried it, they would love it and understand what I was creating for them – and that’s what worked. One person in the circle would get a packet of RAW, often for free in the beginning, and then everyone in that smoke circle on a Saturday night would experience that RAW paper, and they would have a different type of enjoyment, a more connected experience with their material. And after that, they’d ask, ‘What was that? Wow, that’s really cool, I like that!’ and then they would go into a smokeshop and maybe buy a pack of RAW and bring it into their own smoke circle. And it spread like that – from smoke circle to smoke circle. That’s how we spread. It wasn’t social media at all, it was really just the smoke circles and getting through to them with an experience they had never had before.

Who was the first celebrity you met who loved RAW papers, and how did you get introduced?

The rapper, Curren$y. He loved RAW papers and sang about it in a song. He’s the one who introduced Wiz Khalifa to RAW, who eventually sang about RAW, too. But Curren$y was the first bigger artist who really stood up and sang about us. I got to meet him when his manager got in touch with me, because Curren$y wanted some RAW cones. And I was like, hell yeah, I couldn’t wait to meet him. When the Jet Life Tour came through Phoenix, Arizona, I got invited to hang out with him on the bus, and we ended up staying on the bus with him for a couple days, having a fucking blast. Smoking and telling stories. We had a great time. The tour was an incredible experience for me. I learned a lot about the market. Up until that point, I had been thinking my whole market was more of a natural-minded hippy, like my vegan friends. Once I met Curren$y and his whole circle, I realized I was completely not understanding the market. That it wasn’t just my hippy friends who wanted to smoke the best, it was that everyone wanted to smoke the best. And once I understood that, it shifted my mentality about the product. And then I watched RAW really explode. I had completely underestimated my own product. I thought this would just be a little, niche item. When I was in college, I learned all about niche marketing. It’s what I enjoyed. I’m not good at mass marketing. I’ve always focused on making products for a specific person – my friend with dreads, super vegan, incredibly naturalist, I get him. I can make him a product and for people like him. So I thought I was making a niche product for a niche market. I didn’t understand mass marketing, which is why I didn’t understand that everyone wanted to smoke the absolute best.

What do you think is the best social media platform for cannabis-adjacent brands right now, and why?

When it comes to reaching consumers, there’s no place better than Instagram. People spend the most amount of time on Instagram, so it’s the ultimate goal. But it’s a conundrum because it doesn’t feel like Instagram wants us on there, but they want the amount of traction they get from us. Our videos blow up and we get millions and millions of views, and people want the product.

Overall, would you say that consumers in states with legal cannabis are becoming more educated about the plant and its potential to heal and bring people together, or do you think that over-commercialization of cannabis runs the risk of stifling these ideas?

I think ideas are already starting to be stifled. You need a real open market in order for people to succeed. I think the larger the companies get, the more that smaller ideas get brushed under. I really wish there were more smaller businesses in cannabis, because that’s where innovation happens. The bigger you get, the harder it is to innovate.

In addition to papers, RAW has designed numerous devices intended to enhance the smoking experience over the years. What advice would you give to someone with an idea for a new gadget or type of paraphernalia, but is unsure how to turn their idea into a business?

Not all my inventions are profitable. Many are not. My advice would be: to be careful with going too niche. Some of the stuff I’ve made is too, too, too niche. You know, there are just so few people that could actually want that thing, even if it’s funny. Like, my handsfree joint holder that comes around your neck and is flexible, you can hold a joint while you play video games. It’s hilarious. The people that get it absolutely love it. But you wouldn’t want to build a business off that. RAW sold enough of them to break even, and it’s great. It made me laugh, it made all my friends laugh. But I wouldn’t want to try to make a living off that one contraption. That would be a really bad living. I run into that a lot with people. Sometimes people try to give me ideas and I say, ‘dude, almost nobody is going to want that.’ A lot of people think that by combining items, that’s the way. For example: I want to make a kit that holds these things. But my experience is that no, they rarely want kits. They like things to be individual. So my advice is to not go too niche, but to make sure there’s a viable thing there that people will actually want. Because if it’s just one little item, you can’t build a business off that. You need a lot! A lot of viable items.


Thank you, Josh, for answering our questions! Readers can learn more about Josh Kesselman and RAW® Rolling Papers by visiting www.rawthentic.com.

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South Dakota Considers Increasing Possession Limits for Cannabis Patients

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Proposed medical cannabis rule changes in South Dakota would allow for higher possession limits for edibles and would raise registration fees for medical cannabis companies from $5,000 to $5,310, KELO reports. Under the proposal, patients could possess up to 15 grams of edible oils and 2,000 milligrams of THC of other edibles products, up from 500 milligrams. 

The allowable THC in edibles would also be raised from 100 milligrams to 500 milligrams. 

The rules would also allow the size of infused topical products to be 16 ounces, instead of the current 1 ounce limit. Medical cannabis businesses would also have to use scales that are certified under the state’s weight and measures law. 

The new rules would also require medical cannabis to be manufactured with unadulterated ingredients. 

“No botanical, synthetic, or artificial terpenes may be added to any cannabis product during the manufacturing process. No artificial, synthetic, or hemp-based cannabinoids, including Delta-8 THC, may be added to any cannabis product during the manufacturing process.” — South Dakota Medical Cannabis Draft Rules 

The draft rules would also require medical cannabis products to be sold only in opaque packaging and require packages to have expiration or use-by dates, which could not be altered by a dispensary. 

Additionally, the proposal would allow cannabis testing facilities to complete accreditation within 32 months, rather than the current 18 months, and require dispensaries that are not seeking license renewal to notify the South Dakota Department of Health 45 days prior to the expiration of its operating certificate.  

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Workers at Three Illinois Rise Dispensaries Ratify Contract

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Workers at three Rise dispensaries in Illinois have ratified their first collective bargaining agreement. Rise is a subsidiary of multi-state operator Green Thumb Industries (GTI), and the contract covers workers at two locations in Joliet and one in Niles.

The agreement marks the end of what the Teamsters Local 777 described as a “protracted fight” with GTI that included a 13-day work stoppage that ended in May. Jim Glimco, Local 777 president, said the “fight should be a lesson to cannabis companies all across the country and not just Illinois – Teamsters don’t back down.”

“A lot of people who went through what these men and women went through would’ve thrown in the towel. Not this group. They’re young, energetic, tough, smart; they look out for one another, and they embody what being a part of this union is all about.” — Glimco in a press release

The agreement includes wage increases of 18% over the lifetime of the agreement, attendance bonuses, a scheduling policy based on seniority, guaranteed tips and discounts, improved safety standards, and protection against unjust termination or discipline.

Reilly Drew, a Rise worker who served on the bargaining committee, described the agreement as “historic.”

“We started as a small but united group of workers,” Drew said in a statement. “Over the last year and a half, we have grown to be a strong union, changed our workplace for the better, and forged a bright path forward for workers in our industry.”

The 13-day strike was the longest at a cannabis retailer in history.

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Maryland Releases Social Equity Rules and Interactive Maps of ‘Disproportionately Impacted Areas’

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Maryland has released its social equity applicant criteria, including an interactive map outlining Disproportionately Impacted Areas in the state — meaning areas that were disproportionately affected by cannabis prohibition. The Office of Social Equity (OSE) also provided documents that outline open public schools, higher education institutions, and zip codes in the areas.  

Under the rules, eligible social equity applicants must have lived in a Disproportionately Impacted Area for five of the last 10 years immediately preceding the submission of the application; attended a public school in a Disproportionately Impacted Area for at least five years; or for at least two years, attended a four-year institution of higher education in Maryland where at least 40% of the individuals who attend the institution are eligible for a Pell Grant. 

The OSE also launched the Social Equity Verification Portal for individuals interested in obtaining a cannabis business license. The portal opens September 8 and will allow prospective applicants to confirm their social equity status before the license application round opens later this year. The portal will be open for 60 days, closing on November 7. 

Maryland’s first round of adult-use cannabis licensing will be limited to qualified social equity applicants and the release of the social equity criteria allows potential applicants to start the process of establishing their qualifications. 

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California Campaign Seeks to Legalize Psychedelic Mushrooms

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Activists in California are seeking to add a psychedelic mushroom legalization question to 2024 ballots, the San Francisco Standard reports. Ryan Munevar, campaign director for Decriminalize California, told the Standard that the group originally “wanted to go for all psychedelics, but the problem was there wasn’t enough public comprehension about what else was out there.” 

According to the Decriminalize California website, the campaign must collect 546,651 valid signatures by January 10.  

The proposal would allow for the cultivation, manufacturing, testing, distribution, transportation, possession, and consumption of unlimited amounts of magic mushrooms, and psilocybin-infused products, for adults 21-and-older. Under the initiative, the products would carry no taxes unless they were for adult use, which would carry local sales taxes. Additionally, the proposal would not impose special dual local permits and state license requirements.  

The initiative comes after the state Senate in 2021 passed a bill to legalize possession of psychedelics in the state; however, that bill was not taken up by the state House. In May, the Senate passed a similar measure. That bill, which would not legalize sales, was approved on September 1 by the Assembly Appropriations Committee. 

A survey from the University of California, Berkeley in July found 61% of California voters support a regulated framework for the therapeutic use of psychedelics. Another 49% of respondents supported decriminalization of psychedelics.
 

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Number of Kansas Farms Licensed Grow Hemp Falls to 41 from Peak of 200+

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The number of Kansas farmers licensed to cultivate hemp in the state has fallen from more than 200 in 2019 to just 41 this year, KAKE reports. The reduction in licenses comes as the share of Kansas farms growing the crop for CBD oil production fell to less than 5% – in 2019 and 2020, that share was about 90%.   

Sarah Stephens, CEO of Midwest Hemp Technologies, told KAKE that while there has been “a reduction in the number of growers and the number of acres on the CBD side,” there has been “an increase in the number of growers and number of acres on the fiber and grain side.”   

Kansas Deputy Agriculture Secretary Kelsey Olson told KAKE that the first few years of hemp production in Kansas were buoyed by a strong CBD market, but since more states have legalized adult-use cannabis, including neighboring Missouri, the demand for CBD products has declined. 

“The landscape has changed over the last few years across the country. I think that may have shifted some of the use.” — Olson to KAKE 

Melissa Nelson, co-owner of the hemp processing facility, South Bend Industrial Hemp, indicated that some of the state’s hemp producers are working to educate farmers on the potential of hemp fiber and grain markets. She noted that Kansas has the right landmasses, seasons, temperatures, and farmer know-how “to lead the industry.” 

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Hemp Growing Manual Released By Private, Academic, and Government Researchers

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Harvest New York has released a hemp growing manual put together by researchers from Cornell Cooperative Extension (CCE), Alabama A&M University, industry experts, and a research geneticist from the U.S. Department of Agriculture.  

In a statement, Daniela Vergara, a CCE emerging crops specialist and member of the Harvest economic development team, described the guide as “the best manual out there.”

“Everyone knows the industry needs resources to grow, and this was a wonderful collaborative process. … My goal with this manual was that if someone wanted to start growing tomorrow, they could read this and find all the information they would need to be successful.” — Vergara in a press release 

The interactive, full-color, and illustrated manual includes production guidelines for selecting and growing hemp both in the field and indoors, along with considerations for grain and fiber processing, as well as relevant legal and regulatory information for New York state. As new research emerges and state guidelines change, Vergara plans to continue updating the manual and a Spanish-language edition is planned for 2024. 

New York State Sen. Michelle Hinchey (D), chair of the Senate’s Agriculture Committee, in a statement, described hemp as “the material of the future.” 

“And positioning New York to lead the way in its production is a winning strategy for removing plastics from our world and fighting the climate crisis, boosting rural economic development and giving our small farmers a new revenue source,” she said.  

New York Assemblywoman Donna Lupardo, chair of the Assembly’s Committee on Agriculture, added that the manual “will be invaluable to farmers, businesses and policymakers alike” as stakeholders “work to build a successful and sustainable hemp industry in New York state.” 

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hemp plants destroyed in california

Understanding Insurance for Cannabis Operators: Nuances and Trends

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This guest editorial was contributed by Keith Signoriello, the co-owner and principal of C&S Insurance.

As legalization efforts gain momentum worldwide, the cannabis industry has experienced rapid growth and shows no signs of slowing down. New opportunities have emerged for entrepreneurs and investors in the cannabis industry. However, amidst the excitement, a crucial factor toward long-term success is often overlooked — insurance.

Just like different strains of marijuana, cannabis insurance is nuanced. Whether a business is cultivating, distributing, manufacturing products, or applying to become a registered dispensary, being prepared to face a diverse array of challenges is crucial. One of the best ways to protect a business is with a specialized insurance solution that can swiftly adapt to increases in demand and new regulations while effectively mitigating the risk of crop loss, product liability, theft, and cyber-attacks.

Each business has unique operations and risk profiles, which means the future of cannabis insurance will not be a one-size-fits-all solution. From industry changes to emerging trends, understanding what lies ahead and customizing a comprehensive policy will be key to helping businesses stay ahead of the curve.

Here are important coverages to consider:

Product Liability & Product Recall Coverage
Cannabis and hemp, much like food and alcoholic beverages, are consumer-based products that can cause injury, sickness, or worse. This coverage protects business owners against claims of defective or harmful products.

Professional Liability Coverage
Cannabis professionals, particularly those in healthcare, dispensaries, and labs, can be liable for advice that leads to a negative outcome. Also known as Errors & Omissions Insurance, this coverage is often excluded from standard medical malpractice policies but is essential in shielding against such risks.

Workers’ Compensation
Required by certain states, workers’ comp ensures that employees are protected in case of injury or job-related illness.

Commercial Umbrella Coverage
This coverage extends beyond the realm of those previously mentioned, helping protect against additional driving-related risks that come with product delivery.

Commercial Property Insurance
Typically bundled into a broader program, this type of coverage is essential to a comprehensive business plan and comes with significant variables such as policy limits, named and excluded perils, and claims made versus occurrence.

Commercial Auto Insurance
Generally required by businesses that use vehicles, this type of coverage protects against losses involving cars, trucks, vans, and other vehicles utilized in business operations.

Business Interruption & Business Income Insurance
While often used interchangeably, these coverages offer different forms of protection. Business Interruption coverage is designed to cover expenses during a temporary shutdown. Business Income Insurance covers lost earnings if a business is forced to close due to a covered peril.

Cyber Coverage
With the FBI reporting 4,000 daily cyber-attacks, this coverage helps protect you from breaches in sensitive employee, product, and client data — which is especially important for businesses with access to clients’ medical records.

Despite politicians like Senate Majority Leader Chuck Schumer working to decriminalize marijuana, regulatory scrutiny continues to face the industry at an all-time high. It’s important to know that many standard business insurance policies don’t protect companies from cannabis industry-specific risks. Working with specialized cannabis insurance agents can help navigate local approval processes and ensure policies evolve to address internal and industry-level changes and trends.

For example, the global movement toward decriminalization has already increased curiosity and engagement, fostering a growing user base of cannabis enthusiasts and inspiring diverse emerging trends. Cannabis’ acceptance as a legitimate medicine, growing popularity in cannabis-driven tourism, and the influx of innovative strains and products are already paving the way for a future defined by growth.

Legislative milestones such as the SAFE Banking Act of 2021 and insurance policies tailored to different sectors are a testament to the cannabis industry’s evolution and promise. As widespread acceptance continues to unlock new potential, adequate protective measures will become increasingly vital. By safeguarding ventures from the complexities and challenges presented by this expanding market, these measures will empower businesses to solidify their influence on the global economy for years to come.

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Maine Cannabis Regulators Proposing ‘User-Friendly’ Rules Rewrite

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Maine cannabis regulators are proposing new guidelines intended to make the state’s rules more user-friendly, the Portland Press Herald reports. Gabi Pierce, Maine Office of Cannabis Policy policy director, said the new rules would be a “repeal and replace” of the old rules that would include updated formatting, organization, and language. 

The proposed regulations include a new policy that would allow cannabis retailers, manufacturers, and cultivators to deliver to hotels and businesses, allowing the companies to cater directly to tourists. Under the current rules, Maine cultivators and manufacturers cannot sell directly to customers. 

The bill to overhaul the state’s regulations also includes provisions to double the allowable THC in cannabis products from 100 milligrams per package to 200 milligrams and double the amount of concentrates individuals can purchase at a time from 5 grams to 10 grams. 

The proposal comes as Maine cannabis sales reached $21 million in July, which represents a new sales record in the state, according to state data outlined by the Press Herald. The state has also seen about 2 million cannabis transactions this year, nearly doubling the number of transactions in all of 2021.  

Officials will discuss the proposed rules changes this week and regulators are taking public comments until September 17. If approved, the new rules would take effect in January. 

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Poll: Majority of Ohioans Back Cannabis Legalization Proposal

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A new poll from Fallon Research found a majority of Ohioans support the ballot proposal to legalize cannabis for adult use, with 59% of respondents in favor, 32% opposed, and 9% unsure. 

The survey found Democrats backed the reforms 68%-24%, along with 62% of unaffiliated voters, with 28% of the bloc opposed. Nearly half (48%) of Republicans polled supported broad legalization with 46% opposed.  

A strong majority – 68% – of Ohio adults aged 18-44 said they planned to vote ‘yes,’ while 27% were opposed.  Additionally, 62% of adults aged 45-64 backed the reforms, with 28% opposed. Another 46% of adults 65-and-older favored legalization with 42% opposed.  

The poll found 58% of white people in favor of the question, with 33% opposed. Seventy-one percent of Black people indicated they planned to vote yes, with 25% opposed. Another 63% of “other races” polled were in favor, with 32% opposed.      

If the ballot question is approved, Ohioans ages 21 and older would be allowed to buy and possess 2.5 ounces of cannabis and 15 grams of concentrates and grow up to six plants individually and no more than 12 in a household. Cannabis products would carry a 10% excise tax, with revenues used for administrative costs, addiction treatment programs, municipalities with dispensaries, and a social equity and jobs program. 

Last month, the question scored final approval to appear on statewide ballots in November. The reforms are opposed by Republican Gov. Mike DeWine and the Ohio Association of Health Commissioners.  

study published in August by Ohio State University researchers found that adult-use cannabis sales in the state could generate between $275 million and $403 million by the fifth year of operations. 

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Federal Bill Would Withhold Funds from Tribes and States that Legalize Adult-Use Cannabis

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U.S. Rep. Chuck Edwards (R-NC) last week introduced legislation to withhold some federal funds from states and tribes that allow adult cannabis use. Under the Stop Pot Act, states and tribes that legalize or have legalized cannabis for adult use would have 10% of federal highway funds frozen.

The action would not apply to states and tribes that legalize or have legalized cannabis for medical use.

“The laws of any government should not infringe on the overall laws of our nation, and federal funds should not be awarded to jurisdictions that willfully ignore federal law. During a time when our communities are seeing unprecedented crime, drug addiction, and mental illness, the Stop Pot Act will help prevent even greater access to drugs and ease the strain placed on our local law enforcement and mental health professionals who are already stretched thin.” — Edwards in a press release

The bill is backed by Smart Approaches to Marijuana Action and the Christian Action League.

The measure comes as the Eastern Band of Cherokee Indians, which are based in Edwards’ home state, will vote this week on allowing the sale and adult use of cannabis on their tribal lands. If approved, lands owned by the tribe would be the only place in North Carolina to buy cannabis legally.

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White House Says Biden ‘Has Always’ Supported Medical Cannabis Legalization

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President Joe Biden (D) “has always” supported legalizing cannabis for medicinal purposes, White House Press Secretary Karine Jean-Pierre said during a briefing on Friday. The statement came days after the U.S. Department of Health and Human Services (HHS) issued a historic recommendation to the federal Drug Enforcement Administration (DEA) that cannabis be moved from Schedule I to Schedule III under federal law.

“The president asked the secretary of HHS and also the attorney general to initiate the administrative process to review how marijuana is scheduled,” Jean-Pierre said.

“The administration’s process is an independent process — I want to be very clear on that — that is led by HHS and DOJ. It is going to be very much guided by evidence,” she said. “I’m not going to comment on that. I want to be also clear on that piece. So I would refer you all to HHS.”

“Look, the president has always supported the legalization of marijuana for medical purposes. He’s been very clear about that, where appropriate, consistent with medical and scientific evidence. That is why it is important for this review — this independent review that is going to be, again, guided by evidence — to go through.” — Jean-Pierre, in a statement

Notably — and despite Jean-Pierre’s statements — President Biden has not “always” supported the reform of cannabis laws. As noted by Marijuana Moment, the president has championed many pieces of anti-drug legislation throughout his political career, including efforts to ramp up drug war enforcement in the 1990s.

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Illinois Concert Will Be State’s First to Allow Cannabis Consumption

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The inaugural Miracle in Mundelein music festival is set to be the first concert in Illinois to allow state-approved cannabis consumption, WGN9 reports. The two-day concert will be held September 9-10 in Mundelein, and will feature performances by Cypress Hill, Action Bronson, and Stephen Marley. 

The concert will be held across the street from RISE Cannabis Mundelein Recreational Dispensary. Attendees must be 21-or-older. 

The festival will feature rolling stations and dab bars and organizers will provide complimentary grinders, lighters, papers, and rolling trays. Bongs or glass pipes will not be given to concert-goers. Vape pens will also be allowed as long as they meet state regulations and all cannabis must be purchased from an Illinois dispensary and be in the original packaging; however, the packaging does not have to be sealed. 

Peter Shapiro, founder of Dayglo Presents, told JamBands.com that the event “is a testament to the relationship that music and legal cannabis can have when brought together in the right way.”  

“We named the event, The Miracle, because it really is remarkable that we can now bring cannabis and music together in 2023, and it is permitted and legal. Our goal is to create a new type of event, which showcases the uplifting impact of cannabis in a legal environment, while also supporting and growing a real community.” — Shapiro to JamBands.com 

Alcoholic, hemp-derived, and non-alcoholic beverages will also be available to purchase, and there will also be food vendors. 

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Atrix’s Commitment to Social Equity: 100,000 Free 510 Carts Available for Cannabis Business Owners

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Artrix, a pioneering solution provider of hardware, marketing support, and strategy consultation in the cannabis vape industry, today announced the highly-anticipated release of Drillor, their revolutionary 510 thread cart that promises to break through barriers and drive social equity in the cannabis vaping community. As part of their commitment to promoting fairness and inclusivity, Artrix is offering an unprecedented 100,000 units of Drillor for free to cannabis businesses and brands in need of support, as the start of their Social Equity Program.

Drillor offers a unique combination of industrial innovation and top-notch manufacturing capabilities, leading to an unprecedented shift in design and affordability. With cutting-edge industrial design and craftsmanship, this innovation redefines what you thought you knew about 510 carts, daring to drill through the walls of stereotypes and conventional expectations.

The key feature that sets Drillor apart is its innovative mouthpiece. Designed with comfort and durability in mind, ensuring a pleasurable vaping experience with every use. Utilizing double injection molding and an oil-leakage-proof design, Drillor eliminates traditional rubber rings, reducing labor costs and providing worry-free installation. The mouthpiece, wrapped in liquid silicone material, offers a soft touch and easy grip, making vaping sessions enjoyable and stress-free.

An added convenience is the groundbreaking addition scale mark on the cartridge, enabling users to check the oil level at a glance. This attention to detail marries operational convenience with oil-filling accuracy, ensuring users bid farewell to overfilling and uncertainty and instead enjoy a seamless, precise fill every time. The ergonomic grip of the plated brass anti-slip texture at the bottom ensures 510 cartridge removal is hassle-free, creating a comfortable and user-friendly experience.

“Drillor means affordable excellence and uncompromising safety. We believe that everyone should have access to high-quality vaping products, every client we serve is treated with the highest degree of esteem, guided by principles of equality that underpin our arpproach.” said CEO of Artrix. “With Drillor, we aim to level the playing field and make premium cannabis vaping accessible to all. Through our Social Equity Program, we want to empower cannabis businesses and brands, providing them with the tools to thrive and succeed.”

Artrix’s dedication to excellence and safety shines through in Drillor’s meticulous design and manufacturing process. From carefully selected raw materials to rigorous quality testing, each Drillor cartridge is crafted to ensure optimal vaping performance with various cannabis extracts, immersing users in a flavorful and satisfying experience with every puff.

As the first product project of Artrix’s Social Equity Program, Drillor is a significant strategy taking a proactive step towards promoting social justice and inclusivity in the cannabis industry. By providing 100,000 units for free to cannabis businesses in need, Artrix aims to foster a more equitable and diverse future for the entire vaping community.

To claim your free Drillor 510 thread carts and be a part of the social equity movement, visit Artrix’s official website and register your interest today. Let’s work together to build a brighter, more inclusive future for the cannabis industry with Artrix leading the way.

About Artrix – Hardware, Marketing, Strategy, We’re All In
Artrix is an emerging international cannabis vaporizer hardware brand that offers more than just cannabis vape devices. It uses an exclusive three-in-one service model that combines superior product solutions, systematic marketing support, and professional strategic consulting to create a great customer experience. Artrix conducts extensive market research and analysis to understand the needs behind each product and provides localized marketing support to maximize its market potential and success.

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