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U.S. Census Bureau Releases Interactive Map Outlining States’ Quarterly Cannabis Tax Revenues

The U.S. Census Bureau has released an interactive map outlining the quarterly revenue states have garnered from cannabis excise taxes and what percent of their revenues the taxes represent. The agency’s data covers the second half of 2021, all of 2022, and the first half of this year. 

The data set for Q2 2023 is incomplete with several states where adult-use businesses are operational not included, such as Washington State, New Jersey, and Maryland. Other states, including Virginia and Minnesota have legalized cannabis for adult-use but sales have yet to commence. The data also includes states that impose excise taxes on medical cannabis sales.  

The available data shows that Q2 2023 cannabis tax revenues in five states represented more than 1% of the states’ total tax revenues, including Alaska (1.32%), Colorado (1.21%), Illinois (2.04%), Michigan (2.16%), and Oregon (3.19%). Among those states, only Alaska and Michigan had increases in cannabis tax revenues from the previous quarter, with 18.35% and 8.53% respectively. Colorado saw a 0.33% decrease, Illinois a 3.72% decrease, and Oregon a 7.95% decrease.  

Cannabis tax revenues for two states, Arizona (0.73%) and Missouri (0.92%), represented between 0.5% and 1% of revenue and both saw increases from Q1 figures at 9.73% and 89.4%, respectively.  

The cannabis tax revenues from the remaining states included in the dataset comprised less than 0.5% of the state’s revenues in Q2; those states include California (0.26%), Connecticut (0.05%), Maine (0.11%), Massachusetts (0.42%), Mississippi (0.02%), Montana (0.25%), Nevada (0.17%), New Mexico (0.06%), New York (0.37%), Oklahoma (0.09%), Pennsylvania (0.20%), Rhode Island (0.13%), Vermont (0.04%), and Washington, D.C. (0.01%).   

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

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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California Sues Multiple Hemp Companies Claiming State Law Violations

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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Ben & Jerry’s Co-Founder Launches Nonprofit Cannabis Brand

Ben & Jerry’s Ice Cream co-founder Ben Cohen has launched a cannabis brand called Ben’s Best Blnz, or B3, and the company’s profits will be used for social benefit, according to a Fast Company report. The product line includes low-THC products including pre-rolls and vape options.  

B3 is a registered non-profit and 80% of the company’s profits will be administered in partnership with NuProject as grants to Black cannabis entrepreneurs. Another 10% will go to the Last Prisoner Project, and 10% will be donated to the Vermont Racial Justice Alliance. The company’s stated mission is “sell Great Pot and use the power of business to Right the Wrongs of the War on Drugs.”    

“Schedule 1 is the whole root of the war on drugs. Schedule 1 is supposed to be for drugs that have no medical value and have a high risk of addiction, which does not apply to pot, but it does apply to beer.” — Cohen to Fast Company 

The product packaging features quotes by abolitionist Angela Davis and the late former president of South Africa, Nelson Mandela. The brand’s packaging art was designed by Dana Robinson whose Ebony Reprinted series recontextualizes 1950s and 1960s ads from the magazine. Robinson created a new piece for the brand – recontextualizing an old suit ad from the magazine that was set in an ice cream parlor. 

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Massachusetts’ Harpoon Brewery Launches its First THC Beverage

Harpoon Brewery has launched its first THC-based beverage, Rec. Weed, in partnership with Novel Beverage Company. The company describes Rec. Weed as “hop-forward yet approachable.” It contains no alcohol, 5 milligrams of THC, real passionfruit puree, green tea, and hops. 

Dan Kenary, CEO and co-founder of Harpoon, said it partnered with Novel on the product because of its “vast knowledge” of the cannabis industry and “strong New England roots.” Both companies are based in Massachusetts.

“The adult beverage space is constantly evolving. With THC now legalized in states across much of the country – especially here in the Northeast – we saw not only high demand for a THC-based beverage, but an opportunity to experiment in a way that would uniquely leverage our strengths in the beer world.” — Kenary in a press release 

Rec. Weed is the second cannabis-inspired product from Harpoon’s parent company, Mass. Bay Brewing Company, after previously launching Long Trail’s CBD Seltzer. The CBD Seltzer is available in Connecticut, Massachusetts, New Jersey, Rhode Island, and Vermont.  

Rec. Weed is currently only available at adult-use dispensaries in Massachusetts. Novel products are available at adult-use cannabis dispensaries in Maine and Massachusetts. Novel has also worked with Shipyard Brewing and Sea Dog Brewing on cannabis beverages.  

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Jim Belushi to Give Keynote at NECANN’s 2023 New England Cannabis Convention

America’s most well-known cannabis cultivator, Jim Belushi, will join NECANN’s New England Cannabis Convention for a fireside chat on Saturday, March 11.

An accomplished actor, comedian, and musician, Jim will be sharing the lessons and skills he’s learned as a commercial grower and owner of Belushi’s Farm.

Jim joins a lineup of over 120 cannabis industry expert speakers at the convention, which features 2 sold-out exhibit halls with over 300 displays, 5 daily programming tracks, and 4 workshops over 3 days. NECANN will also present the 5th annual New England Cannabis Community Awards on Friday night, and the winners of the 2023 NECANN Cup will be announced on the exhibit floor on Saturday.

The convention will be far and away the largest B2B cannabis industry event ever presented, with over 10,000 industry professionals coming together for the 3-day event at the Hynes Convention Center in Boston.

NECANN has been developing engaging conventions for the cannabis industry since 2014, and now produces the largest convention in Massachusetts, New York, New Jersey, Illinois, Vermont, Connecticut, Maryland, Virginia, and Maine, expanding market opportunities for businesses, entrepreneurs, investors, educators, patients, advocates, and consumers. NECANN conventions hold a unique place in the event space, taking a collaborative approach with the local industries and communities, which has resulted in consistently high returns for exhibitors, sponsors, attendees, and the local cannabis market as a whole, allowing everyone to benefit and grow.

“We’re happy to say that The New England Cannabis Convention continues to defy industry norms by growing yet again in 2023,” said NECANN Founder and President, Marc Shepard. “Both exhibit halls sold out over 2 months before the show and we had the highest number of speaker applications we’ve ever seen. This event has truly become ‘The Annual Meeting of the Northeast Cannabis Industry.'”

If you’d like to see what NECANN conventions look like, click on one of the links below for a short highlight reel:

NECANN Boston
NECANN New Jersey

To learn more about joining the NECANN community as an exhibitor, sponsor, speaker, or attendee, please visit us at NECANN.com

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2023 Cannabis Industry Predictions: Retail, Marketing, Branding, CPG, and Education

Between a host of new cannabis industry inventions, the first-ever federally approved cannabis reforms bill, and President Biden’s landmark step of pardoning all federal cannabis possession charges — and calling on governors around the U.S. to follow suit — 2022 was an important year for cannabis reforms and the growth of the cannabis industry.

But despite these exciting successes and developments, the industry is poised to have an even more incredible year in 2023. So we asked a wide group of cannabis experts, entrepreneurs, and other professionals to weigh in with their predictions for the industry next year. This is the first installment of our 2023 Cannabis Industry Predictions series: scroll down for the reactions and predictions we received from cannabis retail, marketing and branding, CPG, and education specialists.

And stay tuned for Parts 2, 3, and 4 coming later this month!

Advertising



Mark Kuhn, CEO of Oat Foundry LLC
“More states will legalize recreational use and it will become more and more important for dispensaries to differentiate with not only new and exciting products, but also beautiful and engaging experiences for their customers (Armed guards? Bars on windows? come on!). Similarly, we will see a wider adoption of terpene data by inventory management and POS systems – knowledge of terps will become mainstream and used by customers when they discuss their desired products. Finally – like in more mature industries – the observation and use of customer data to drive more profit for MSOs and vertically integrated dispensaries will be paramount.”
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Branding



Lilli Keinaenen, Packaging and Branding Designer at Changemaker Creative
“The marketplace is more fragmented than ever – so your product needs a strong, memorable brand message to stand out on crowded shelves and gain consumer loyalty. Personally I’d love it if 2023 is the year when conscious consumerism becomes mainstream in cannabis, and packaging goes sustainable… In consumer goods, sustainably marketed products are the fastest growing with terrific ROI – so maybe there’s room for optimism! Sustainable packaging trending in newly legal states like Vermont and New York, and reuse in Colorado gets me excited as a sustainable cannabis packaging + brand designer!”
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Patrick Toste, Creative Director for Highopes

“With the increase in traction of niche product categories (i.e. beverages, infused pre-rolls, and fast-acting gummies) we anticipate a strategic shift in brands being built around specific target consumer segments. Rather than employing a traditional “catch-all” approach, we’re finding that brands that understand and cater to the unique wants, needs, and desires of a focused audience are experiencing the most success. It’s all about knowing your customer better than they know themselves!”
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Consumer Packaged Goods (CPG)



Lulu Tsui, Co-founder and Chief Experience Officer at On The Revel

“As we are harvesting our first crop in New York, the sentiment is that our flower is going to be sub-par because it is grown outdoors. What’s currently popular in the unregulated market is high potency hype strains that come with the elaborate bag game. As consumers become exposed to different types of flower strains, products, brands, I think the narrative that high potency is the only indicator of quality cannabis will change.”
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Christine De La Rosa – CEO & Co-founder at The People’s Ecosystem

“In 2023, a prominent cannabis trend we’ll see is consumers more interested in how cannabis products, outside of flower, are made and produced. Consumers will be looking for organic, vegan, and all-natural made ingredients. Any cannabis company still using masking agents, chemicals, emulsions, and surfactants to create products is behind the times. All natural delivery systems using proteins to organically deliver cannabis to your system in clean and repeatable experiences is the next BIG thing. With the new technology coming out across the U.S., I predict edibles will have hockey stick growth in 2023.”
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Darnell Smith – CEO & Co-founder of Mxxn
“Despite wider economic headwinds, cannabis-infused beverages will continue its growth trajectory in 2023. There will be an increased focus on collaborations that help build the category, as well as building the infrastructure to allow for true scale. Beverage has such a unique opportunity to expand the reach of the plant and it’s exciting to see the overall quality of the category improve exponentially year over year.  As consumers and their consumption habits continue to evolve, the infused beverage segment is in a great position for long-term success.”
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Melanie Davis – COO at The People’s Ecosystem

“In 2023, a cannabis trend we are expecting to see is more BIPOC and women-owned brands edging out CPG’s subpar weed products. This will be the year BIPOC and women-owned brands begin dominating the shelve space and invite the masses into the cannabis culture we carry forward with our pure ancestral medicine.”
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Lex Corwin – Founder & CEO of Stone Road

“I think 2023 will be a pivotal year for cannabis. Not only are we expecting SAFE banking to pass in the next 12 months but federal rescheduling of cannabis will usher in the third wave of badly needed cannabis investment. This influx of fresh capital will allow brands that have proven themselves in their home market to expand out into new states. We will continue to see a wave of M&A activity as companies prepare for the eventual entry of the alcohol, tobacco, and pharmaceutical industries.”
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Daryn Medwid – Chief Revenue Officer of West Blvd Cannabis
“Legal cannabis in 2023 will lean into its future as a true CPG business. Leading companies are already digging into consumer insight data and creating innovations tailored to specific consumer occasions and need states. Those that continue to launch products without doing the consumer work are doomed to fail. Trying to achieve market share without a full understanding of the consumer lead to the insolvencies, M&A and predatory financing that we’ve experienced over the past year. Creating an innovation pipeline supported by consumer insights, tight overheads and the flexibility to adapt provide an opportunity for brands to sidestep the extinction event we’re experiencing now.”
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Imelda Walavalkar – CEO of Pure Beauty

“2023 will be a year of conservation and expansion. Finding efficient business practices, being financially conservative – don’t overspend, don’t overbuild. We all know times are tough, so making smart choices and being resourceful is essential. However, there are unprecedented opportunities for those with strong brands and quality products. For example, New York–for all its craziness–feels more meritocratic than many other states. Many legal states have become oligopolies, so the NY market could be game changing for those of us without heaps of VC cash to pay lobbyists to attain license-monopolies. Entering a state of such great cultural importance as well as being such a big market is an exciting prospect for those of us wanting to participate more in a more democratic way.”
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Education



Martine F. Pierre – Founder and President of Cannalution

“As the United States cannabis market continues to develop further and legalization spreads, we will see a new influx of inspiring entrepreneurs, people wanting to transition careers, and advocates emerge. So expect to see more Universities and Colleges creating programs to meet the explosive demand for a skilled workforce in the cannabis industry. I also believe that more people will be looking for alternative ways to learn more about getting started in cannabis without securing a degree or certification. On the advocacy side, all eyes are on NYS, watching to see if they will be one of the very few states to get social equity right.”
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Marketing



Kieryn Wang, Founder of ALMOSTCONSULTING

“With all that happened in 2022 and the consumer behavior shift that started at the beginning of the pandemic, transparency is going to be key in 2023. Transparency in processes, regulations, what people are putting in/on their bodies and who they’re giving their money to. Consumers want access to this information. They want to know they can trust the product and the company. Especially what happened with the tragedy at Trulieve, it’s more and more important for companies to be forthcoming in how they’re keeping their staff and their consumers and communities safe.”
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Victor Karpenko, CEO of MjSEOAgency

Organic search traffic will be even more valuable in the cannabis niche in most verticals, because so far it shows the highest return on investment in marketing. The competition will grow not only with marketplaces, but with local dispensaries and seed stores. All the problems will stay the same: not enough understanding in basic business processes, that slows down companies with growth. I think because of the niche perspective and predicted growth, even if the recession comes, we will see a lot of new players on the market next year.
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Nicholas Paschal – CEO of AlpineIQ

“There is more competition than ever before for retailers and brands. As we face recessionary pressure they will have to use data to speak to individuals, connect customers with the right products, and create a truly unique digital experience. Without having real time data to inform them, operators are left to create that strategy blindly.”
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Retail



Arshad Lasi – CEO of The Nirvana Group
“Cannabis retail stores will continue to adapt to a more educated and experienced consumer base, as cannabis is rapidly becoming ubiquitous and entering mainstream shopping and lifestyle experiences. In the coming year, I expect more distinct styles of dispensaries to open, attracting particular customer bases, rather than a one size fits all retail approach. Dispensaries will approach their shopping models in a similar fashion as grocery stores; for example, grocery stores and super markets may operate in the same region and offer the same categories of items, but they cater to different demographics, and shoppers expect to find different brands, product styles and price points within each store. Targeting different consumer demographics will be crucial, and branding will be key even in the retail sector.”
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Drayten Howell – Founder and CEO of indacut
“The market is and will continue to consolidate as our industry matures. Although there are many hopeful laws and bills that will assist operators – the main goal is too last to see the change. Operators including myself need to focus on value add, customer retention, and differentiation overall. In addition your operation must generate lasting cash flow. This will be the year when operators who break out of their comfort zone, run lean and mean, with the primary goal of turning profitable will excel. New markets are turning on, people are getting back out and wanting to experience new things. Having a physical experience in parallel with a seamless virtual experience will be key in attracting customers. The delivery component of retail operations can and will set you apart if done right. I’m hoping for a breakout year for everyone fighting the good fight. It’s not always fair, right, or rewarding but the pioneering by each individual in this industry is what is pushing us forward TOGETHER with hopes of real change.”
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Lauren Carpenter – Co-founder and CEO of Embarc
“There’s been focus on the potential of east coast markets, but with regulatory implementation in states like New York we’re seeing some of the same mistakes playing out again. This gives California operators significant strategic advantage – if you’re surviving here, you can survive anywhere. We need to remain heads down, finding strength and support in our community to continue delivering the best products and experiences in cannabis today. This also means pushing the boundaries of how we interact with the plant, including meaningfully integrating it in festivals and events as part of a broader effort to destigmatize at scale.”
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Ivan Suslov – COO of IndicaOnline
“As consumers are becoming more sophisticated in purchasing decisions, dispensaries will adapt by bringing more diverse product lines onto their shelves. We will see more innovation in the infused products which will gain bigger market share. Contactless purchases will be on the rise as well. Delivery, curbside and online purchases will become even more popular and dispensaries will have to cater to their customers in order to stay relevant.”
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NECANN’s New Jersey Cannabis Convention Coming to Atlantic City September 9-10

Innovation, opportunity, investment and inclusion highlight NJCANN programming

Atlantic City, New Jersey – The New Jersey Cannabis Convention is returning to the Atlantic City Convention Center for two days of cannabis business, networking, and education September 9-10, 2022. The event will mark the largest gathering of cannabis industry professionals, businesses, and advocacy groups ever in New Jersey In addition to an exhibit hall with over 120 companies, the event will feature two locally-focused education programming tracks concurrently running each day, giving attendees access to over 50 expert speakers covering every facet of the New Jersey cannabis market.

“We’re very excited to be back for our 3rd New Jersey Convention, it’s very exciting to see how much the maket has evolved since our first event in 2019”, said Marc Shepard, founder and President of NECANN. “In the spirt of inclusion and accessibility for all, we’re also very pleased to be able to announce that we are once again making ALL of our speaker content open to everyone who registers for the event at a cost of just $20 a day, a small fraction of what most cannabis industry events charge”.

Programming highlights include:

Chirali Patel, Founder of the Blaze Law Firm hosts a session called “Blooming in the Garden State”, a guide to navigating the challenging legal licencing process in New Jersey.

Jennifer Bassuk, an agricultural expert from Fluence Bioengineering leads a session for growers titled “What Cultivators Need to Know to Navigate New Jersey’s Burgeoning Cannabis Market”.

Jennifer Cabrera, Esq. of Vicente Sederberg LLP’s session, “X Marks the Spot: Which Garden State Municipalities Are Still in Play” covers all things municipal from municipality choice to property search, becoming a good community partner, and explains the steps for preparing a competitive local application.

“This convention is specifically designed for industry leaders, advocates, entrepreneurs, career and knowledge seekers, and the canna-curious to come together to learn and meet the people paving the way for the New Jersey cannabis industry,” said Marc Shepard, founder and President of NECANN. “With the cannabis industry heating up in the Mid-Atlantic, it’s also a timely opportunity for operating and new businesses alike to engage with and learn from consumers, promote their businesses, and their products.”

All programming details are available at: https://necann.com/new-jersey-convention/programming/
Registration: Advance registration available at: https://bit.ly/NJ22tix
Location: Atlantic City Convention Center, 1 Convention Blvd, Atlantic City, NJ
Hours: Friday Sept 9th, 10am-5pm | Saturday Sept 10th, 10am-4pm
Admission: $20 for one-day pass; $35 for two-day pass; Children under 18 MUST be accompanied by an adult

About NECANN
Since 2015, NECANN has hosted the largest, most comprehensive Cannabis Industry event series in the nation. Our schedule includes conventions in New Jersey, New York, Boston, Maine, Vermont, Chicago, Virginia, and Connecticut, making it the largest series in the country. For more information: go to necann.com, email info@necann.com or call: 774-254-5073.

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Senators Send Letter to Biden Urging Him to Deschedule Cannabis

Six U.S. senators last week sent a letter to President Joe Biden (D) urging him to use his executive authority to deschedule cannabis and issue pardons to all individuals convicted of non-violent cannabis crimes. 

The signatories include Democratic Massachusetts Sens. Elizabeth Warren and Ed Markey, New York Sen. Kirsten Gillibrand (D), New Jersey Sen. Corey Booker (D), Oregon Sen. Ron Wyden (D), and independent Vermont Sen. Bernie Sanders. The group had previously sent a letter asking the Biden Administration – namely the Department of Justice – to deschedule cannabis in October and in the recent letter noted that the response to their inquiry took more than six months and was a half-page that noted the Department of Health and Human Services (HHS) had determined “cannabis has not been proven in scientific studies to be a safe and effective treatment for any disease or condition.” In the recent letter, the senators say that response “ignores the ability of the DOJ and Drug Enforcement Administration to begin the descsheduling process and act independently of an HHS determination.” 

The senators said the administration has still not responded to a November letter they sent to the president asking him “to pardon all individuals convicted of non-violent cannabis offenses, whether formerly or currently incarcerated.” In April, Biden pardoned nine individuals convicted of non-violent cannabis crimes, but the senators say “much more has to be done to address the racist and harmful legacy of cannabis policies on Black and Brown communities.”  

“The legacy of the war on drugs is pervasive,” the senators write. “It is estimated that over 40,000 individuals are still incarcerated for cannabis-related offenses.” 

The letter calls out the administration for failing “to coordinate a timely review of its cannabis policy” which the senators say “is harming thousands of Americans, slowing research, and depriving Americans of their ability to use marijuana for medical or other purposes.” 

All of the letter signatories represent states that have legalized cannabis for adults.  

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Medical Cannabis Now Tax Free in New Jersey

Medical cannabis is now tax-free in New Jersey as provisions of the Jake Honig Compassionate Use Medical Cannabis Act implementing the tax cut took effect on July 1, NJ Biz reports. Prior to the final reductions, medical cannabis was the only medicine in the state subject to tax.  

Before July 1, 2020, medical cannabis in New Jersey was subject to a 6.625% tax, which is the state’s sales tax. Jake’s Law reduced that tax to 4% on July 1, 2020; 2% on July 1, 2021; and fully reduced the tax on July 1, 2022. 

Honig was a 7-year-old New Jersey boy with brain cancer whose symptoms were partially relieved by medical cannabis. He passed away in 2018 following a five-year cancer battle and state lawmakers passed the bill with his namesake on July 2, 2019.  

Adult-use cannabis taxes are not affected by Jake’s Law.  

Several other states, including Alaska, Delaware, Louisiana, Maryland, Massachusetts, Minnesota, New Hampshire, Oregon, Pennsylvania, Utah, Vermont, and Washington do not levy sales taxes on medical cannabis sales. Medical cannabis sales in Arizona, Arkansas, California, Colorado, Connecticut, Florida, Hawaii, Illinois, Iowa, Maine, Michigan, Mississippi, Missouri, Montana, Nevada, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Washington, D.C., and West Virginia are either subject to state taxes, excise taxes – or a combination of both – or businesses are required to pay gross receipts taxes and that cost could be passed on to patients. 

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Bernie Sanders Urges Justice Dept. to Prosecute White Collar Crimes More Than Cannabis

In an email to supporters on Friday, former presidential candidate and Vermont Senator Bernie Sanders (I) said that the U.S. government should start prosecuting more white-collar crimes and business offenses rather than cannabis crimes, Common Dreams reported. In the email, the Independent from Vermont wrote that instead of disproportionately arresting poor people and people of color for cannabis use, the Justice Department should “start prosecuting the crooks on Wall Street for laundering money from drug cartels, suspected terrorists, and corrupt foreign officials.”

“We have a criminal justice system today that is not only broken – it is racist and it is unjust,” Sanders wrote.

He also called on Congress to legalize cannabis at the Federal level.

“We must reform our broken and racist criminal justice system, and one of the ways we can do that is by finally legalizing marijuana at the federal level. It starts with changing the Federal Controlled Substances Act which, if you can believe it, currently puts marijuana in the same category as heroin. That’s absurd and defies all scientific judgment.” – Sanders, in an email, via Common Dreams

The email included a link to a petition calling on Congress to pass a legalization measure.

Sanders’s remarks come at a time when a Syracuse University’s Transactional Records Access Clearinghouse study found white-collar prosecutions are down 24.4% from five years ago. Additionally, a Public Citizen investigation found only 90 corporations pleaded guilty or were found guilty of a federal crime last year, a record low, according to the report.

These numbers are in stark contrast to the 350,150 Americans arrested for cannabis in 2020 — down from 545,602 in 2019 — and 92% of those were for simple possession, according to Common Dreams.

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Delaware Gov. Expresses Support for Cannabis Decriminalization Bill on His Desk

Delaware Gov. John Carney (D) has expressed support for the broad cannabis decriminalization bill passed last week by the Legislature but stopped short of saying whether he would sign the reforms, WMDT reports. The measure is a pared down version of a full tax-and-regulate system, instead allowing possession of up to an ounce by adults 21-and-older.

“I don’t think it should be a criminal offense but this bill that passed just decriminalizes it, it doesn’t have a regulatory piece that goes with it. So, we’re looking at the same concerns that I’ve been articulating for some time with respect to public safety and its effect on our young people and we’ll continue to keep those in mind.” – Carney to WMDT

Carney has said he opposes broad cannabis legalization. In 2018, Vermont lawmakers passed a similar bill only to approve legislation to allow retail sales two years later.

Under current Delaware law, possession of an ounce or less of cannabis by anyone 21-and-older carries a $100 civil penalty. Under the bill being considered by the governor, possession of non-medical cannabis by anyone under 21 would still result in a civil penalty, while possession of more than one ounce and public consumption would remain misdemeanors. The bill also allows adults to “transfer,” but not sell for payment or other consideration, an ounce or less to another adult.

A bill to regulate cultivation and commercial sales passed the House Appropriations Committee last Tuesday but requires a three-fifths majority to pass each chamber.

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Canadian Border Authorities Seized 36,371 lbs. of Cannabis in 2021

In 2021, the Canada Border Services Agency (CBSA) made 22,779 cannabis seizures totaling 36,371 pounds of cannabis, the agency said in a press release on Monday. The agency also reminded travelers that bringing – or taking – cannabis across its border remains prohibited, warning that CBD products could also violate agency policies.

“Avoid seizures, fines or arrest: Don’t bring it into Canada. Don’t take it out of Canada.” – CBSA, “CBSA reminds Canadians of cannabis border laws,” May 9, 2022

The agency reiterated that consumers should make sure they are buying cannabis through government-approved retailers when buying online “to avoid potential delays, an enforcement action, and even criminal prosecution.”

The CBSA is also responsible for screening all goods that enter and exit Canada, including those by mail, and those packages may be subject to more in-depth examination. Under the nation’s cannabis laws, it is illegal to import or export cannabis to or from Canada.

“Personal, mail, courier, and commercial shipments are subject to the Customs Act,” the agency said in a press release, “and may be examined for prohibited goods, including cannabis and cannabis products.”

Individuals who do not declare their cannabis when entering Canada could face enforcement action by the CBSA, including seizure, arrest, and fines which would be applied “based on the type, severity, and frequency of the contravention,” the agency said.

Canada legalized cannabis for adult use in 2018 and shares a border with several U.S. states that have passed the reforms, including Alaska, Maine, Michigan, Montana, New York, Vermont, and Washington.

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“Whether bear market or otherwise, I expect that as cannabis matures as an industry, it will increasingly leverage debt as a way to fuel growth and operate business.”

Adam Stettner, CEO – FundCanna

New Hampshire House Votes to Legalize Cannabis & Put Liquor Commission in Charge

The New Hampshire House of Representatives voted 169-156 last week to legalize cannabis for adult use in the state; however, the bill would create a state-run monopoly system, the Associated Press reports. Under the plan, the state Liquor Commission would regulate the cultivation and sale of cannabis in at least 10 stores.

The vote comes less than three months after the Republican-controlled chamber approved a separate measure that would legalize personal possession and cultivation of cannabis for adults 21-and-older. That bill, which still requires Senate approval, would allow adults to possess up to 3/4 of an ounce of cannabis – which is already decriminalized in New Hampshire – and allow personal cultivation of up to six plants. The proposal passed the lower chamber with a five-vote, veto-proof majority.

During an interview last month with WCVB 5 “On the Record,” Republican Gov. Chris Sununu said that while he doesn’t support broad cannabis legalization, he called the bill approved last week by lawmakers “the way to do” legalization. He indicated that he opposed the reforms because the state had just gotten the opioid crisis under control.

Both of New Hampshire’s border states, Massachusetts and Vermont, have already legalized cannabis for adult use. Sales to adults began in Massachusetts in 2018 while Vermont’s initial bill in 2018 legalized possession and use but not sales – a separate bill to allow sales was passed by Vermont lawmakers in 2020 but sales have yet to commence in the Green Mountain State.

Previous efforts to legalize cannabis in New Hampshire have failed as the House has passed the reforms three times in four years but they have never been approved by the Senate.

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New Hampshire Governor Not Ready to Legalize Cannabis

During an interview with WCVB 5 “On the Record” New Hampshire Gov. Chris Sununu (R) said he was still unsure whether the state was ready to legalize cannabis for adult use, although he admitted he likes the bill currently being considered by lawmakers.

Sununu said that he doesn’t think it is the right time to legalize cannabis in the state as officials have just gotten the opioid crisis under control. He noted that New Hampshire is the only state that did not see an increase in opioid-related deaths last year.

“If you’re gonna do it, that’s the way to do it. But I just think we’re seeing – we’re the one state that’s seeing really positive results [from efforts to address the opioid crisis] – we’ve got a long way, of course, I mean almost 400 people died last year [from opioids]. The rest of the country has doubled their opioid deaths, we’re down 18% in the past three years.” – Sununu on “On the Record”

Both of New Hampshire’s border states, Massachusetts and Vermont, have legalized cannabis for adult use. Sales to adults began in Massachusetts in 2018 while Vermont’s initial bill in 2018 legalized possession and use but not sales – a separate bill to allow sales was passed by Vermont lawmakers in 2020 but sales have yet to commence in the Green Mountain State.

New Hampshire lawmakers in 2017 approved a bill to decriminalize possession of up to three-quarters of an ounce of cannabis – which was signed by Sununu – while the state House of Representatives approved a broad legalization bill in January. The passage marked the fourth time in three years the lower chamber has approved the reforms.

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NECANN 2022 B2B Cannabis Convention Schedule Is Its Largest Ever

NECANN’s 2022 cannabis convention schedule will be the largest ever presented, with B2B events in Massachusetts, Oklahoma, Illinois, Vermont, New York, New Jersey, and Maine.

NECANN has been developing engaging conventions for the cannabis industry since 2014, expanding market opportunities for businesses, entrepreneurs, investors, educators, patients, advocates, and consumers. We feel our approach of creating unique conventions focused on the current state and potential of each local market we come to is a superior alternative to the generic national canna-convention franchises that pop up everywhere. Rather than focusing on what the cannabis industry can do for us, NECANN takes a collaborative approach with the local industries and communities for our conventions, which has resulted in consistently high returns for exhibitors, sponsors, attendees, and the local cannabis market as a whole, allowing everyone to benefit and grow.

“We’re very excited to be back in full swing, and looking forward to connecting cannabis industry businesses to more new customers in all of our markets in 2022, including our first conventions in Tulsa and Albany,” said NECANN Founder and President, Marc Shepard. “With new markets opening up every year this is a great time to be in the cannabis industry, and we’ll be expanding to even more new states in 2023.”

If you’d like to see what NECANN conventions looks like, click on one of the links below for a short highlight reel:

NECANN Boston
NECANN New Jersey

To learn more about joining the NECANN community as an exhibitor, sponsor, speaker, or attendee, please visit us at NECANN.com.

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Cannabis News

DAILY UPDATES: Read the latest cannabis industry news for May 3, 2024


JUMP TO: Subscribe // Browse news topics // Announcements // Adult use news // Medical news // About Us

BREAKING: DEA Reportedly Agrees to Move Cannabis to Schedule III

In a landmark move, the Drug Enforcement Administration (DEA) has proposed reclassifying “botanical cannabis” from a Schedule I to a Schedule III substance under the US Controlled Substances Act, as reported by the Associated Press. This decision, following an endorsement from the… Read More

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The latest news headlines from markets that have embraced adult-use legalization. Find breaking news, legislative updates, and business developments that are shaping the recreational cannabis industry as we know it. Our team of writers and industry experts are constantly monitoring the latest developments in adult use cannabis markets to keep you informed and up-to-date on the latest trends and emerging opportunities.

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Medical Cannabis News

Breaking news updates from medical cannabis programs and research happening around the globe. Medical cannabis has emerged as a powerful tool in the treatment of a wide range of health conditions, from chronic pain to epilepsy to cancer. As legalization efforts continue to expand around the world, the medical cannabis industry is growing rapidly, with new products, treatments, and research emerging on a regular basis. At Ganjapreneur, we are dedicated to staying at the forefront of this exciting field, providing our readers with the latest news and insights on medical cannabis.

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Ganjapreneur: your source for daily cannabis news and business insights.

Welcome to Ganjapreneur, your go-to platform for the latest cannabis industry news. Our mission is to provide operators in the legal cannabis space with the information they need to succeed in this rapidly-evolving industry. Since 2014, we have been dedicated to keeping cannabis founders, activists, and investors up-to-date on the latest policy news from the US and internationally, as well as providing a wealth of resources to help them navigate the complex landscape of legal cannabis.

At Ganjapreneur, we believe that the legalization movement is about much more than just generating profits. Cannabis has been used as a medicine for thousands of years, and its legalization is an important step towards correcting the historical wrongs of cannabis prohibition, and could provide safe and affordable relief to people around the world suffering from a wide variety of health conditions. In addition to keeping the product accessible and affordable for those who need it, we believe that cannabis commerce should be accessible to people who have been persecuted by the War on Drugs, and that cannabis prisoners around the world should be released and have their records expunged.

Want to join the cannabis industry? First, understand its context.

The history of cannabis prohibition in the USA is a long and complex one, with roots stretching back to the early 20th century. One of the earliest attempts to criminalize cannabis in the US came in the form of the 1915 Harrison Narcotics Tax Act, which regulated opiates and cocaine but also included cannabis as a taxable drug. However, it wasn’t until the 1930s that cannabis began to be widely demonized in the media, with newspapers like William Randolph Hearst’s San Francisco Examiner publishing sensationalized stories linking the drug to violent crime and insanity.

Around the same time, Harry J. Anslinger, the first commissioner of the US Treasury Department’s Federal Bureau of Narcotics, launched a campaign to criminalize cannabis on a federal level. Anslinger noted that cannabis use was more common among minority communities and stated that their appreciation of “Satanic music” (i.e. jazz and swing) was a direct result of marijuana use. He also believed that marijuana use could cause white women to “seek sexual relations with Negroes, entertainers and any others.” In 1937, the Marijuana Tax Act was passed, which effectively made cannabis illegal on a federal level.

Despite these efforts, cannabis use continued to be relatively widespread throughout the 20th century, particularly among marginalized communities. In the 1960s and 70s, the counterculture movement helped to popularize cannabis use among a wider swath of the population, leading to increased pressure to decriminalize or legalize the drug. However, it wasn’t until the late 1990s and early 2000s that the first states began to seriously consider legalizing cannabis for medical use.

Cannabis Legalization Timeline:
  • 1996: California becomes the first state to legalize cannabis for medical use
  • 2001: Canada legalizes medical cannabis for authorized patients
  • 2012: Colorado and Washington become the first states to legalize cannabis for recreational use
  • 2013: Uruguay becomes the first country to fully legalize cannabis
  • 2014: Oregon and Alaska legalize recreational cannabis; Illinois becomes the 20th state to legalize medical cannabis
  • 2015: Puerto Rico legalizes medical cannabis
  • 2016: California, Nevada, Maine, and Massachusetts legalize recreational cannabis; Ohio, Pennsylvania, and Florida legalize medical cannabis
  • 2017: West Virginia and Louisiana legalize medical cannabis
  • 2018: Vermont becomes the first state to legalize cannabis for recreational use through the state legislature, rather than a ballot initiative; Oklahoma legalizes medical cannabis
  • 2019: Illinois becomes the first state to legalize recreational cannabis through the state legislature; New Jersey, New Mexico, and New York legalize medical cannabis; Colombia legalizes medical cannabis exports
  • 2020: Arizona, Montana, New Jersey, and South Dakota legalize recreational cannabis; Israel legalizes medical cannabis exports
  • 2021: Virginia becomes the first southern state to legalize recreational cannabis; Mexico legalizes recreational cannabis, becoming the world’s largest legal cannabis market by population; Ireland legalizes medical cannabis
  • 2022: France legalizes medical cannabis

Despite the growing momentum towards legalization, the US federal government has yet to fully embrace the movement. Cannabis remains illegal on a federal level, and businesses operating in the industry face significant legal and financial hurdles as a result. However, with more and more states legalizing cannabis each year, it seems only a matter of time before the federal government takes action as well.

Want to stay informed about the latest legalization news?

Subscribe to the Ganjapreneur community newsletter for our daily cannabis news updates and start getting your briefings!

Editor’s Picks

Social Equity: What Is It, And Is It Working?

In the cannabis industry, we often read about “social equity” and we see countless headlines discussing cannabis prohibition, America’s long history of injustice against marginalized communities, and thoughts for rectifying the past through equity programs. But while understanding our past and providing solutions for the future is core to change, I often wonder if a… Read More

How to Get the Most Out of B2B Cannabis Events

Business-to-business (B2B) cannabis conferences are an extremely useful resource for cannabis entrepreneurs at any stage of launching and/or operating their business. Whether you are attending your first-ever cannabis conference this year or you are returning to the events circuit after a pandemic-driven hiatus, this is a guide to help you get the most out of… Read More

Live Resin vs. Live Rosin: What’s the Difference?

Cannabis concentrates have proven to be one of the most rapidly-growing segments of the cannabis industry. Over the years, discoveries in cannabis extraction have largely driven industry expectations when it comes to determining a high-quality product — for example, the first CO2 extracts were praised as a replacement for butane-based products, while those same butane… Read More

Seattle Decriminalizes Psilocybin Possession & Cultivation

The Seattle City Council voted unanimously yesterday to decriminalize psychedelics including psilocybin and similar substances, Bloomberg reports. Often colloquially called “magic mushrooms,” psilocybin is considered a Schedule 1 substance under federal law.

Officially, the change calls for local law enforcement (including police and prosecutors) to make naturally occurring psychedelic substances like psilocybin and ayahuasca their lowest priority.

“Our overall goal is to follow the lead of Oregon,” Seattle City Councilmember Andrew Lewis told Bloomberg ahead of the vote (Oregon was the first state to legalize the therapeutic use of psilocybin in 2020).

“There’s a huge demonstrated potential for these substances to provide cutting-edge treatments for substance abuse, recovery from brain injuries, [and other issues]. I want to make sure we’re following the science in our policies around regulating these substances.” — Lewis, via Bloomberg

Psychedelics reform is gathering steam across the U.S.:

Even the DEA signaled this year it was preparing for an influx of psychedelics-related developments after the federal agency called for a significant increase in psilocybin production for federal research and clinical trials.

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Jon O’Connor & Amy Cirincione O’Connor: Humboldt Cannabis Tourism

As cannabis reforms become more and more widespread, the traditional tourism industry has unfortunately been slow to accept the cannabis community. Even in Humboldt County, California — which is world-famous for its expert cannabis cultivators and cannabis-friendly climate — travelers can find it difficult to legally appreciate the region’s most archetypal crop.

In our latest podcast episode, our host TG Branfalt interviews Jon O’Connor and Amy Cirincione O’Connor, who co-founded Humboldt Social earlier this year on a mission to deliver cannabis-friendly lodging, dining, and event opportunities. This podcast episode covers their company launch, the latest cannabis tourism trends as society emerges from COVID-19 restrictions, California’s limited opportunities for social use, and more!

Tune in to the interview via the media player below or scroll further down to find a full transcript of the podcast.


Listen to the podcast:


Read the transcript:

Commercial: This episode of the Ganjapreneur Podcast is made possible by AROYA, a comprehensive cannabis production platform for commercial growers. If you are a commercial cannabis grower, you can use AROYA to level your production workflow. featuring a combination of precision instruments and powerful software that help you intelligently cultivate, dry and process cannabis. The AROYA cannabis production platform is your ticket to greater yields and consistent quality. Request a quote today online at aroya.io. That’s A-R-O-Y-A.io.

Cara Wietstock: Hi, I’m Cara Wietstock, culture editor at Ganjapreneur and host our YouTube show Fresh Cut. The best way to understand cannabis business is to speak directly to those who work within it and Fresh Cut was created to shine recognition on the people who fill these roles. In this interview series, we focus on those with their hands and the dirt, both literally and figuratively. From cultivators to bud tenders, educators to advocates, activists to lobbyists. We aim to illuminate the workers who keep this industry thriving. Enjoy one-on-one conversations with me and guests by watching along on the Ganjapreneur YouTube channel and follow our social channels to keep up with the latest episodes. Have a great day.

TG Branfalt: Hey, there, I’m your host TG Branfalt and thank you for listening to the Ganjapreneur.com Podcast, where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today, I’m joined by Jon O’Connor and Amy Cirincione O’Connor, founders of Humboldt Social, a California hospitality and wellness brand that is incorporating cannabis into its current business model. Jon has been a founding COO and board member of Dosist, a globally recognized cannabis wellness company, and is a member of the founding team of cannabis wellness brand, Papa & Barkley. How are you doing this afternoon, Jon and Amy?

Jon O’Connor: We’re doing great.

Amy Cirincione O’Connor: Doing great. Thank you.

TG Branfalt: So, before we get sort of in the details of this really, really, really cool project you guys have going on tell me about yourselves and tell me about Humboldt Social.

Amy Cirincione O’Connor: Let’s see, I am a licensed clinical social worker who came into this industry, I think accidentally. I would think as Jon and I got together and started kind of planning out our future, realizing that the path of AirBnb and investing in properties that could also be revenue streams for us would give us so much flexibility in terms of our life, right. It would give us opportunities to travel and to just see the world in a really different way, and maybe not be locked into a 9:00 to 5:00 job for the rest of our lives.

TG Branfalt: Who wants that?

Amy Cirincione O’Connor: Exactly. And so that was really the sort of axy. I think we were just thinking, we would just dip our toes into hospitality by renting out a spot that we owned and living out of backpacks for a while, and then we’ve just sort of grown and grown and grown. And for us, I think integrating cannabis came in just seeing a real lack of integration and recognition of cannabis, not just the plant, but also the community within the hospitality industry. We just so much of a, especially in an area like Humboldt where cannabis and tourism are really the twin drivers of the economic engine up here, for us it just felt really natural and kind of obvious to join them together. And so, I don’t… unlike Jon, I don’t have any formal business background, but like I said, it’s kind of obvious. I think some of the things that need to get done and so just been learning along the way.

TG Branfalt: And how about you, Jon? Tell me about how you came into all of this.

Jon O’Connor: Yeah, well, look, I’ve been in Humboldt County for about 21 years now. I came here after college and the interesting thing is I’m still not local, after being here for over half my life. But I’ve very much appreciated the culture and the people. I started out doing tourism, so I ran zip lines. I was a river guide, all sort of surrounded redwoods in Humboldt. And after we sort of continued to build that business, Amy and I started doing vacation rentals and then we started opening some bars. We opened up an oyster bar. And then we kind of realized that not everyone needs to go zip lining or river rafting, but everyone needs to sleep.

So lodging was a little bit more effective for us on the sales front. And then we also realized everyone needs to eat. But then even after that, everyone has vices. So after opening up some bars and connecting people with adult beverages, started looking at cannabis. I was introduced to cannabis as a profession about six years ago when one of the ex mayors of Arcata, which is kind of in the center of Humboldt County, introduced me to a farmer and broker and said, hey, this guy wants to do a cannabis tourism center. You might be a good connection to help him out. Very shortly thereafter, we started meeting with some investors in the Bay Area, and before we knew it, Dosist was launched. We had a marketing firm out of the East Coast.

They came in as a partner and then boom, it exploded, and then the founders started taking each other out and then I resigned. And just as I was resigning, Papa & Barkley was launching and needed a home for manufacturing. So we connected with the founder who’s Amy’s second cousin, who dropped a bunch of money in our bank account and we started finding manufacturing spaces and got one of the first licenses in Eureka to do manufacturing for Papa & Barkley. And then kind of speed forward a couple years now to the pandemic, we got so busy with our careers and lives, we either needed to grow our hospitality business because we have a couple hotels and bars and restaurants, so we needed to sell it. And we wanted to lean into cannabis and hospitality and do it together.

Humboldt County is… there’s 15,000 cannabis farms in Humboldt County. There’s 4,000 wineries in California. So we have almost four times, three to four times as many cannabis farms as we do wineries. And the California wine industry produces 80% of the wine that the nation consumes, but there’s only two to 3000 licensed cannabis farms in Humboldt. So the rest are traditional market. So it’s interesting that even the hotels in Humboldt County don’t lean into cannabis. So our mission is to normalize cannabis and hospitality. We’re doing that by bringing people into our hotels and you can go straight and go to the restaurant, go right to the bar or turn left and have a consumption experience in the hotels.

We’ve also partnered with Papa & Barkley where we’re creating sort of immersive hospitality and cannabis experiences. So you walk in and there’s a gift shop, a wellness shop that’s unlicensed. So you can get everything from CBD products to wellness products in the very start, of the very beginning of the dispensary. You go in and you get that licensed experience and you go outside and there’s a full food truck and outdoor restaurant. You go a little bit farther back, and there’s a consumption lounge where you can consume. And then if you want a medicated activated massage, you can… There’s one or two massage therapists that are there every day, doing cannabis infused massages, or CBD infused massages, you can choose.

TG Branfalt: So you’ve built heaven.

Jon O’Connor: We’ve built what everyone assumes is in Humboldt County. So what’s interesting about hotels in Napa Valley and Sonoma is you don’t walk into the hotel and there’s not pictures of wine all over the place. You walk into the hotel and it’s just normal hotel. It’s just in the center of all this cool wine experience and they have wine as well. So we are creating really cool boutique hotel experiences and cool restaurants and acknowledging that we’re in the center of the cannabis universe with 15,000 farms.

TG Branfalt: So tell me about… I mean, I can’t describe to you how much I really want to go there right now, as it snows in upstate New York, but what are California’s social use policies? I mean, when I go to, or when I was able to go to Montreal pre-pandemic, you could buy cannabis, no smoking in the hotels. You could smoke in public places, so long as you’re not near school. So we did a lot of smoking in the parks and in the street, but what are California’s policies?

Jon O’Connor: So let me tell you how New York is doing it right and then I’ll tell you how California’s done it wrong. So New York right off the bat on day one, they decriminalized it. So you can walk down the street in New York, even at Central Park, you can light up and you can smoke. Anywhere that you can legally smoke cigarettes, you can smoke cannabis. Beautiful, simple. They’re also expunging people’s criminal records. They’re really trying to do it well. What California did is they didn’t figure out consumption. So what that means is for people that don’t own their own home, there is nowhere for them to legally smoke. You can’t smoke in your car, you can’t smoke in public and you can’t smoke in a building that doesn’t expressly allow it.

So that leaves visitors to Humboldt County in the region that produces more cannabis per square acre than anywhere else in the world. You can legally go into a dispensary and buy it, but then if you ask a police officer or anyone in the state, what to do with it, they say, well, smoke it legally. Where can you smoke it legally? In a private residence that you own that you’re allowed to do it? So there’s a couple loopholes here. One, the state has said, hey, whatever local jurisdictions say about consumption, you can do. So that’s where we’re working with Papa & Barkley. We created a consumption lounge, totally legal.

We’ll give the people the opportunity to consume both edibles, beverages and smoke, and smoke cannabis onsite, totally legal. We just have to encourage them to have designated drivers or encourage them to take Ubers or taxis or something like that. So that’s what we’re doing there. At our hotels, we are working it out with the regulators right now. So you’re legally allowed to smoke on private property in areas that’s not available to the general public. So we’re working with that very specific rule to solve it. Right now, you can have cannabis delivered to any hotel in California.

Some hotels are encouraging that by putting menus on the bedside tables, other hotels are not. So we are working within the existing rules and framework to solve it. That said, we’re not building a bud and breakfast or cannabis hotel. We’re just acknowledging that this is a powerful plant. It’s about two thirds of our economy in Humboldt County and there’s 15,000 farms. So why wouldn’t you be leaning into this in the same way that businesses in Napa and Sonoma has created their whole world around the wine industry.

TG Branfalt: So one of the things that you guys are in the process of doing is opening these… you’re opening dispensaries. Can you tell me about sort of the challenges in opening dispensaries as opposed to the model that you have now, the hospitality model?

Jon O’Connor: Yeah. So my job for Papa & Barkley was real estate and compliance. So what I did for the company is I found them real estate. I got building permits. I licensed the real estate for cannabis activities and then I… that I opened them up. So as I was starting to exit Papa & Barkley and start to build Humboldt Social, or continue to build it and scale it, I already had gotten two dispensary licenses for the company. So I approached the company and said, hey, these are underutilized resources, what if I utilize these licenses, manage them for you, give you a percentage of sales and turn them on. Here’s the ideas, here are the concepts. Eight months later, we had not active agreement, started rolling.

And so that part was easy, but that’s also because that’s what I did for my job. So I did renovated buildings, worked with contractors, got permits and then worked with the different regulatory authorities. So in California you have to get local jurisdiction to approve your cannabis permit first, and then the state will approve it second. So what that means is if anyone wants to do business in California, you find a city or a county that has loose or easy regulations or permits, and there still are cities and counties that you could walk up, pay five to $15,000 and get a permit and then money to the state and also get a permit. There’s no wait in line. There’s no lotteries. There’s other cities where you gotta do a lottery. They’ve limited it. But California is still a place where if you go to these small jurisdictions or small cities or counties, you can still get a license.

So for us, that part was easy. And in Humboldt County, our plan is proof of concept this year. So it’s about making it easy for the cannabis consumer and new cannabis consumer to learn about cannabis, buy cannabis, and consume cannabis, whether it’s on our properties, adjacent to our properties, or at these dispensaries that we’re working on. And then next year’s all gonna be about scaling and going to other locations and grow in the business.

TG Branfalt: And Amy, you’re an educator and Jon just brought up education. How important is that to you, to have this element within your model?

Amy Cirincione O’Connor: Oh, so important. I mean, I think we love our cannaseurs. We love the folks that are coming to Humboldt explicitly to experience the variety of the cannabis products that we have, the different strains, the different farms, the sun grown versus indoor. And those are always fun customers to have, but what we’ve experienced being in partnership with Papa & Barkley is that many consumers are super new to cannabis as a whole, right? So one of the things that we experienced with Papa & Barkley when Jon first started working there was we would have these contractors on site, right, doing construction. And these are old Humboldt guys, right? These are old mill workers. These are contractors, these are old loggers. They would never smoke a joint, right. This is not what they’re going to do, but they have chronic pain.

They’ve been working, their bodies have been their tools for so long and so is out there with the patches, right? He’s like giving them patches, he’s giving them cream. And then now we have these 56 year old men who would never be a druggie, right, but they are loving the relief that they’re getting. And it’s also, it’s introducing them to the healing properties and reducing the stigma of key cannabis. And so that’s a huge… That’s definitely a market for us, is folks that are coming. Maybe they’re just seniors on their RV trip, right? And they’re coming through the redwoods and they’re going to stop at a place like Papa & Barkley Social. And it’s not this narrow, dark windowless space with huge neon green Buddhas outside, that’s clear. That sends a message that this is not for you, right?

Whereas Papa & Barkley social is going be this… is an inviting light filled, warm, beautifully designed space that’s for anybody. So I think that’s one really powerful piece of education. And I think for me personally, right, I’m a mom, I’m a teacher, I’m a professional. And I have been realizing in the last few years that even as a bar owner, alcohol is not really a super healthy component of my life, right. I’m getting older. I have a couple drinks, I wake then up the next morning and I feel it, right? I see it in my skin. I feel the hangover. I’m moody, Jon can attest to that in the morning, right? So I’m trying to figure out, okay, well, what is my… how is my lifestyle?

How am I still going to find relaxation? How am I going to socialize while also trying to shift the role that alcohol plays? And for me, that’s all been about exploring in a different way, my relationship with cannabis. And when I was younger and I was consuming cannabis, it was like, get as blazed as possible. This is amazing, right. It was a huge part of my identity. And now that my life is fuller, and I live in cannabis country where I’m actually like an educated consumer, I’m realizing that micro-day-dosing is amazing, right. Being at the river here all day with a couple beers is one thing, but being out like having half a gummy and being on the river is like, in my mind, a peak Humboldt experience, like everyone should have it.

And so that’s really exciting for me, is having folks come in that are… Can learn all of the different ways that they can experience cannabis to elevate whatever experiences. They’re looking for. They’re looking for relaxation. Are they looking to go on an amazing hike and just maybe be more tuned in? Are they looking to get physical relief? Are they looking to socialize, right? And teaching them all the different ways that cannabis can be a part of that experience.

TG Branfalt: And what kind of people are, are you seeing most often? I mean in Massachusetts, when I go to a dispensary, the predominant age group are people my parents’ age and they’re 50s and 60s. And with legalization that occurred just the other day in New York, the secretary at my job, the administrative assistant, she said, well, I think I’m going to try it now. And this is a 62-year-old woman that had never, in our conversations previously, had never said, hey, could I get a gummy. Because she knows I’ve got them in my pocket, right. So what is the people that you’re seeing experience your experiences.

Amy Cirincione O’Connor: Yeah. So I would say so we, in our branding and brainstorming, we created this archetype of Hannah. This is our customer profile, right.

TG Branfalt: How interesting.

Amy Cirincione O’Connor: And I’ll just say, it’s not a lie that Hannah’s like loosely based on me, right Jon? Right?

Jon O’Connor: There are a variety of Hannahs and you were one of them. We had some consultants stay with us at the beginning of COVID and there was also another, I think Jewish social worker that was also named Hannah. So you were a… who also consumed cannabis. But yeah, no, you should definitely talk more about Hannah.

TG Branfalt: I want to talk all about… I want to know everything about Hannah.

Amy Cirincione O’Connor: Hannah is dope, first of all, you want to hang out with Hannah. So Hannah in many ways is really inspired by some of the customer profiles that we see in our hospitality business, right? So we see that the majority of the folks that are booking our rooms are working professionals. Are professional women working. They’re not necessarily… They could be traveling in groups. They could be traveling with a partner, they could be traveling with their families, but they’re really the ones that are driving the travel vacation planning for their families or their groups, right. They’re super media, social media savvy. They know what they’re looking for and they rely on social media, but also print media to looking for experience that really are going to efficiently and effectively deliver what they’re looking for, right?

These are working women, typically I would say age like late twenties all the way up until late fifties. And they don’t have a lot of time, right? And so when they’re… Even if they’re planning a two-week road trip, they’re trying to do get the most out of every day, right. And these are folks that are… They’ve got their tagged posts on Instagram, they’ve got their Pinterest albums and they’re also, when they’re traveling through a region like Humboldt, they’re also talking to… They’re talking to their bartenders and their wait staff and even the folks at the grocery stores asking recommendations. And so, those are the folks that come and stay with us over and over again, they’re the ones that find us through other posts on social media. Someone posts a great experience that they have with us and then their friends come and visit.

And they’re very conscious consumers. And so when we looked at that customer base hospitality, it felt like a really natural segue into the cannabis elements of the business, right? These are folks, women that yes, they’re absolutely looking to relax with the other responsibilities and they got a lot that they want to get done in the there travels in Humboldt. And so being able to find… make really specific, targeted recommendations of products that can pair well with the travel experiences that they’ve already planned and that can really maximize, I think, whatever their goals are in terms of states, right, but also will… But also have nice packaging and have a well curated social media presence because they’re looking for products that aren’t just fun to consume, but also they’re looking for sustainability. They’re looking for social responsibility and they’re looking for cuteness.

Jon O’Connor: And TG, Hannah haunts me because as we are building this business, it’s all about Hannah. So as we are building who’s going to be our partner for the massage space and what amenities do we need to support? And Hannah’s fancy and she likes her nice things. So like we had to buy a $40,000 honey wagon bathroom for Hannah but I think it’s been really important for us because like Hannah’s is design forward. And I also want to convert Hannah. So there’s going to be Hannahs that are daily smokers or daily consumers of cannabis. There’s a lot of them. But there’s also going to be Hannahs that show up for the massage or up for our outdoor restaurant, because it’s on Yelp and or because they did an Uber Eats pickup and they’re going to arrive at this location and they’re going to be surprised that, oh, they can walk right into this dispensary and where other dispensaries have armed security guards, while we have security guards sort of behind the scenes, watching the cameras, we also have our staff welcoming Hannah at the front desk offering every Hannah and their plus ones a warm towel to enter the space. Instead of welcoming them with a gun and a badge, we’re welcoming them with a warm towel and a inviting environment, surrounded by plants and in a comfortable setting.

TG Branfalt: Jon, is there also a lot of crossover? I mean, you started this sort of outdoor adventure in that sort of space. Is there a lot of crossover with those customers or that sort of population with your experiences?

Jon O’Connor: I mean, I think it is. I mean, I was very much in the adventure industry and business as a lifestyle. I loved being on the rivers. I loved being up in the redwood trees and as I got married and as we had kids, I very much recognized that the lifestyle wasn’t the only things. And creating college funds for our kids and having savings and buying a house. And all of those other things were also important as lifestyle. So those customers very much varied and some of them were Hannahs with their families and some of them were Hannahs with their girlfriends, but it was very much a shotgun approach to customers in the outdoors. So the customer service is the same, whether you’re dealing with a Hannah and the outdoors or you’re dealing with them in a hospitality setting, but everyone’s got to sleep, everyone’s gotta eat and everyone has their vices. And those tend to make a little bit more money and are more sustainable as a business than, than just pure sort of adrenaline or a serene experience in the redwoods.

TG Branfalt: I have to ask, has anyone shown up for one of your experiences, a massage or something, and been like, what, cannabis is involved, and just took off?

Jon O’Connor: So we are just launching on 4/20. So while we have had an existing hospitality business for the last eight or nine years, we are just merging it with cannabis this year. So we’re just we’re halfway through our fundraising round. So anyone out there that loves this idea, hit us up. But we’ve had a lot of people that have been shocked, especially with Papa & Barkley’s hero product, their Balm, because it’s a product that doesn’t get you high but it’s also a product that has a tremendous amount of efficacious properties where it’s both a pain reliever and an anti-inflammatory. So giving it to people that have never tried cannabis before, it’s the perfect sort of first product.

And then they can get in tinctures and pre-rolls and vape pens and sort of… And even beverages now. So we are about to merge and give this business a real go starting 4/20 at Papa & Barkley Social in the Old Kmart in Eureka, in the center of Humboldt County.

TG Branfalt: Well, you mentioned the beverages and beverages is my favorite I think sort of product, because I don’t drink alcohol really. And so when I’m with friends and especially in Michigan, when I could get THC-infused root beer, I mean, it was fantastic. I could sit around and feel like I’m having a drink with friends, which hasn’t happened for me in a very long time. And then you guys also own a bar, right. And so what role do you guys think that that beverages or what segment of the market do you think beverages are eventually going to be in the cannabis space?

Jon O’Connor: Yeah, so beverages are exploding and we are creating our own beverage line. So we’ve got a subbrand called Social Nature that we’re building. It’s basically like our house brand for our dispensaries and it’ll be the core products that you can get delivered to our hotels. But we’re leaning into beverages because of what you just said, TG, is it’s just that focus on the social experience. So what we’re trying to build is the social experiences that people have experienced in hospitality and transition it to cannabis. So at Papa & Barkley Social, you can get a normal sparkling water.

You can get a Spiked Seltzer or you can get a CBD-based drink like Recess, and you can consume any of those three. And you can sit at the outdoor restaurant or you can sit in the consumption lounge and have that same social experience. But our goal is to normalize those experiences and basically do exactly what you said you liked, of having that social experience without having to drink alcohol.

TG Branfalt: For you, Amy, you said that alcohol is sort of being disengaged from your life or something of that effect. What’s your take on beverages?

Amy Cirincione O’Connor: I think they’re so exciting because I think it’s an amazing replacement activity, right? So we all know that it’s not just like the chemical composition of alcohol that’s addictive, right, it’s also the ritual of it and the process. So I think it’s every… A lot of us who have a relationship with alcohol, it’s not just the sensation of drinking, right, or even the onset of getting buzzed or even drunk. It’s like the whole thing, right? It’s the social experience, or it’s the sensation of having like a cold can in your hand or the fizziness and all those things. And I think that CBD and THC activated beverages are just a phenomenal way of replacing so many components of that ritual with something that’s healthier. And I think, I also just think like kind of method of delivery-wise, the way that there is so many ways that you can experience the high, right? You can just like, when you smoke, it hits real quick, and then often there’s also the side effects of sometimes dry eyes or dry throat that come with that.

And then there’s edibles, but then you’re waiting around, right. And some of us have had the experience of having an edible, forgetting about it, and then suddenly you’re like, wait, what is happening right now? Right. But my experience, and I think the folks that I know that are regular consumers of CBD or THC drinks, it’s a fairly similar onset process to drinking a beer, right, or drinking a Seltzer. I think that’s also a key thing is that owning a bar and seeing the way that seltzers, hard seltzers, have taken off and is that’s such a comparable consumption experience to some of these the can beverages.

And so I’m really excited to see that, to be able to provide those. And I’m also excited eventually to have more of a mocktail experience and playing with non-THC, non-CBD tincture, but also some that are, and just really focusing on all the therapeutic that properties that come with honestly hydrating, right, which is what should we all should be doing. And you can have that experience and have it taste good and have it feel good and not end up drunk or hung over I think.

TG Branfalt: Is that something that you offer in the consumption lounges, is sort of mixed mocktails made with cannabis or is that something that is being considered widely. Are we going to see sort of cannabis bars?

Jon O’Connor: We are absolutely going lean into that in phase two. So for our launch right now at 4/20, we already are doing four big things. So you’re coming in, you have a non-cannabis retail experience in the front because in California, you can’t even buy a t-shirt in a dispensary without getting it approved by the state of California. So for us to have an unlicensed space in the front, just gives us a lot of flexibility because cannabis dispensaries can’t even sell water. They are prohibited by the state. So we are sort of working within the rules and construct to have a separate entity in the front of the building that is using a separate point of sale system to sell whatever you want. And then you have the traditional dispensary and then the consumption lounge, and then the outdoor restaurant, and then the massage activity. So, our goal and when we launch is to integrate that experience, normalize it, and then absolutely add onto it.

So when COVID slows down, we’re very interested in leaning into events, when the world opens back up and absolutely building a a non-alcohol bar and I think people will be pretty excited for that.

TG Branfalt: So what do you guys think that your model will be able to teach others interested in incorporating cannabis into their existing hospitality or tourism business?

Jon O’Connor: I hope that people in Humboldt County who continue to lean into cannabis because it is surprising how much of a stigma cannabis still is. The local Visitor Bureau doesn’t even promote cannabis. I mean that’s how terrible the stigma still is, so.

TG Branfalt: Do you think they will eventually? I’m sorry to cut you off, but I mean, do you think that that’ll happen eventually?

Jon O’Connor: When all of these old fuckers die, excuse me.

Amy Cirincione O’Connor: Okay. Okay. So the marketing will change. I think it’s going be too late, right? By the time Humboldt is actively marketing, there, we’re going to be four counties behind. Mendocino is going to be there, Santa Barbara is going to be there. There are just so many more sophisticated, innovative marketing concepts coming out and it just going to be a real shame for Humboldt is out on it, because we are so well-positioned. We should be at the forefront and we’re not. And I think what I’ve seen here is a really powerful growers association that’s really been putting the pressure on our county and local authorities saying, this is what we need, our products are here. Our services are here, we are ready to provide these services. We just need you to put the message out there. And so, I think we, like a lot of these other growers, we are doing the messaging ourselves. Okay, thank you very much. We’d rather our tax dollars not go to you, but they do. And in the meantime, we’re just going to create our own budgets for these things.

TG Branfalt: I mean, it does seem just slightly ridiculous. I mean, I know Jon makes the joke, but I mean, it does seem slightly ridiculous that Humboldt is synonymous with cannabis. I’ve known about Humboldt County since I was 15 years old, and it’s because I was reading High Times and to talk about Humboldt branded products then. So I take your point very, very well. And what role do you guys think that cannabis is going to play in how people just book vacations generally? I mean just to, for example, I won’t go to any place on vacation that doesn’t have legalized cannabis, not going to. So am I sort of the hardheaded exception or what do you guys see in… from a hospitality perspective?

Jon O’Connor: Well, I think that hospitality is going to continue to slowly embrace cannabis. Our goal for our business is the normalization of it. So for part of the normalization to work is you need cannabis, heavy cannabis forward businesses doing things all around you. So for us to be cannabis, supportive cannabis, embracing, and hospitality connected, we need the bud and breakfasts, we need the smoke-filled, bong-filled rooms. Because there are serious cannaseurs that will only travel and will sort of create their life around that. We support that. However, our establishments we are really focusing on Hannah, and that’s who we’re building it out towards. So we hope our sort of next phase in 2022 and beyond is partnering with existing hospitality business is to bolt on Humboldt Social to that. And that’s after we prove our concept this year, that’s really where we’re going to go. So looking at those legal states or pre legal states to bolt on that infrastructure and show how hospitality and cannabis can come together.

Amy Cirincione O’Connor: Yeah. I think if we’re doing our job and we’re bringing our vision to fruition, we’re not going… We will cater to some guests who are cana-centric in their travel planning, but for many folks, it’s just going to be part of the experience. That’s what integration for us means, that you’re going to come and part of your… Yes, the Humboldt experience is our rivers. It’s our redwoods, it’s shopping. It’s the local food movement, it’s our makers and creative community and getting to meet those folks. It’s cannabis, it’s wine, it’s beer and spirits, like it’s all those things. And so I think I would like to see other, at the very east hotels using the word cannabis on their websites. That would be a huge win to just acknowledge that it’s here and know that they can do that and that doesn’t mean they got to… It doesn’t mean that their lobby needs to have cannabis air fresheners in it, so that that’s the forwards, what you smell when you first walk in.

It’s a part of what we do. I think that some of the stigma around it locally is that there’s a lot of folks here who believe that we need to fight against our reputation and our association with cannabis, and that’s limiting for us. I feel like in the last decade, that’s just really been proven to be incorrect. From a marketing perspective, that’s not the move. The move is toward it. The move is alongside it, not against it.

TG Branfalt: So in the last couple of minutes here, I mean, you both have these very diverse backgrounds and you’re both incredibly smart. But you are in the thick of building, something that I’ve never seen done before. So what advice do you guys have for entrepreneurs in this space?

Jon O’Connor: First advice is come visit us. We will share our limited knowledge for free. And then secondly, make a plan and start going for it because this is the time — the best ideas are built in depressions and at the bottom. So we’re currently in this interesting place with COVID and our economy, but also this massive explosion of cannabis and this weird hemp thing going on with CBD. And we personally think that’ll go away and cannabis will be… hemp and cannabis is the exact same thing. It’s just one has less THC and the other one has more THC. So, we think it’ll come around and if you embrace the plant and the culture is it’ll work.

TG Branfalt: What about you, Amy? What advice would you have for entrepreneurs?

Amy Cirincione O’Connor: So when we first, when we renovated our very first building, we had a very… Innovative is a nice way to say it. We had a very innovative vision for what we want to do with the building. We had no construction experience, no design experience. This was our very first purchase. And we had a very different idea for what we wanted to do. And we met with lots of reputable, contractors and engineers, and talked about what we wanted to do. And in the beginning, I was the one who was meeting all those folks on the job site. I was coming from my full-time job during lunch, my lunch breaks. I was meeting these folks and people would take one listen to me at the space, listen to me for about a minute and often just be like, no, that’s not possible.

Or, oh, that costs $300,000, or kind of pat me on the head, okay, little girl, goodbye. And I would come home and talk to Jon about it and be like, yeah, it’s just not possible. And Jon’s like, of course it’s possible. We just have to find… We just haven’t found the right person. We just haven’t found the right contractor. And he said, the goal is to get to the, yes. Keep on talking, keep on asking until you find the right person who, and their answer is going to be yes. And I think that that mantra has served us incredibly well through all of our businesses, because it is our… It is the rule, not the exception that people tell us that our ideas are terrible or that they’re going to fail, or that they’re impossible. That’s been our experience every single time.

And now I’m confident enough that people say that to me, I’m like, okay, so not with you, right? So you won’t be our customer, or you’re not going to be our contractor as opposed to doubting the integrity or the possibility of our ideas. And I think that that’s, if you want to be an innovator, especially in the cannabis space right now, just keep talking, just keep asking questions, keep finding the people and get to the yes.

TG Branfalt: I’ve done this podcast since I think 2016. I mean, some of the best advice that I’ve really ever heard. Thank you so much for sharing that with me. Where can people find out more about Humboldt Social and you guys?

Jon O’Connor: Yeah. So the best place to start is humboldt-social.com. And then that has sort of our family businesses on there, and they could stay with us tomorrow at humboldtbaysocialclub.com and stay at our current site. And then look for Scotia Lodge on June 15th and you can also, if you’re driving through Eureka, check out Papa & Barkley Social at the old Kmart on the way in the town.

TG Branfalt: I would love to talk to you about this Kmart if we had time, honestly. I love old repurposed buildings. In Burlington, Vermont, they just turned a Macy’s into a high school. I mean, it’s brilliant. So thank you guys so much for being on the show. I am very excited to see how this plays out and maybe at some point, get on a plane and go to Northern California spend a night in what sounds like heaven for somebody like me.

That’s Jon O’Connor and Amy Cirincione O’Connor founders of Humboldt Social, a California hospitality and wellness brand that is incorporating cannabis into its current business model. Thank you guys again so much for being on the show. It’s really been a pleasure.

Jon O’Connor: Thanks a lot TG.

Amy Cirincione O’Connor: Thanks TG.

TG Branfalt: You can find more episodes of the Ganjaprenuer.com podcast and podcast section of Ganjaentrepreneur.com on Spotify and in the Apple iTunes Store. On the Ganjaprenuer.com website, you’ll find the latest cannabis news and cannabis jobs updated daily along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Trim Media House. I’ve been your host TG Branfalt.

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Thailand Legalizes Kratom

Thailand on Tuesday legalized the possession and sale of Kratom, which is often used as a painkiller and mild stimulant, the Associated Press reports. The reforms will see thousands of pending criminal cases in Thailand dropped and 121 inmates convicted of kratom possession released from prison.

Ramdin Areeabdulsorma, a politician in Pattani province, told the AP that kratom has historically been a part of the daily lives of Thai people.

“To decriminalize kratom is the right thing to do. Local people or patients who need it will be able to access it more easily. However, I am concerned that teenagers will use it in a wrong way, for example, mixing kratom with other narcotics. We have to control this strictly, otherwise, it can cause damage.” Areeabdulsorma to the AP

Nimu Makaje, a Muslim community leader in Yala province, said that the nation needs “to have proper controlling measures” of kratom now that it has been decriminalized.

“Currently, a lot of people have lost their jobs and they may use it to reduce their stress,” Makaje said to the AP. “This is very dangerous.”

In the U.S., kratom is considered a “drug of concern” by the Drug Enforcement Administration but it is not federally outlawed. Kratom is banned in Alabama, Arkansas, Indiana, Rhode Island, Vermont, and Wisconsin, according to Kraoma, which notes there is pending legislation on kratom in Hawaii, Louisiana, Michigan, New Hampshire, and New Jersey.

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Study: Cannabis First Domesticated in East Asia During Neolithic Era as ‘Multipurpose Crop’

A new study suggests that cannabis was first domesticated in East Asia during the Neolithic Erafrom 3900-1700 BCand was a “multipurpose crop” likely used for both industrial and medical purposes. The researchers indicated that “all current hemp and drug cultivars diverged from an ancestral gene pool currently represented by feral plants and landraces in China.”

“We identified candidate genes associated with traits differentiating hemp and drug cultivars, including branching pattern and cellulose/lignin biosynthesis. We also found evidence for loss of function of genes involved in the synthesis of the two major biochemically competing cannabinoids during selection for increased fiber production or psychoactive properties.” “Large-scale whole-genome resequencing unravels the domestication history of Cannabis sativa,” July 16, 2021, Science Advances

Luca Fumagalli, an author of the study, said the hypothesis is largely based on observational data of wild examples in the region, noting that the “feral samples” found in East Asia “are not wild types.”

“These are plants that escaped captivity and readapted to the wild environment,” he said in an interview with the New York Times. “By the way, that’s the reason you call it weed, because it grows anywhere.”

The researchersfrom six countriescollected 82 samples, either seeds or leaves, from around the world, which included strains that had been selected for fiber production, and others from Europe and North America that were bred to produce high amounts of THC. The plants’ DNA was extracted and sequenced. The researchers also downloaded and reanalyzed sequencing data from 28 other samples.

The result was that the wild varieties analyzed were in fact “historical escapes from domesticated forms,” and that current strains in Chinaboth cultivated and wildwere the closest descendants of the ancestral gene pool. The researchers conclude that “pure wild progenitors of C. sativa have gone extinct.”

A 2019 study by University of Vermont researchers suggests that cannabis evolved 28 million years ago on a Tibetan plateau around Qinghai Lake at about 10,500 feet above sea level. That research notes that many biogeographers believe that cannabis first grew in Central Asia due to its pollen first appearing in India more than 32,000 years ago and in Japan in 10,000 BCE.

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Study: Cannabis-Friendly States See Faster-Growing Home Values

From 2017 to 2021, home prices in states with adult-use cannabis laws grew by an average of $17,113 more than in states where cannabis remains prohibited or is only allowed for medical use, according to a Clever Real Estate analysis outlined by National Mortgage News. So far this year, housing values in legal states increased $470 for every $1 million in 2020 cannabis revenues.

House prices in those states also increased $519 for every new dispensary a city adds, the researchers found. Among the five states that have passed cannabis reforms but have not yet allowed salesMontana, New Mexico, New York, Vermont, and Virginiathe study suggests home values would have been 13.5% higher had if they had allowed recreational sales over the previous four years.

Clever Data Scientist Francesca Ortegren said she expects the trend to continue as more states pass the reforms and begin to allow adult-use sales.

“An interesting phenomenon we might encounter is county or city-level regulations prohibiting sales within legal states. Prohibiting sales of recreational marijuana in a municipality would cause citizens to venture out to purchase marijuana and reduce the amount of cash flow in the ‘dry’ county. Even counties that don’t allow alcohol generate far less tax revenue than their ‘wet’ counterparts.”Ortegren to National Mortgage News

A study published in March by insurance comparison company the Zebra found that just 46% of Americans would purchase a home within one mile of a cannabis dispensary.

A National Association of Realtors study published last year found 34% of respondents said there had been an increase in demand for warehouses in states with legalized cannabis since 2016.

A 2019 report by RE/MAX found both home prices and home sales in Canada increased post-legalization.

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Adult-Use Legalization Has Led to $7.9B in Tax Revenues for States

Adult-use cannabis legalization in the U.S. has led so far to a combined total tax revenue of $7.9 billion in states that have approved the reforms, according to a Marijuana Policy Project report. Washington state, which launched adult-use sales in 2014, has seen the most cannabis-derived income with nearly $2.6 billion in revenues from sales, according to the analysis.

Colorado, which also launched sales in 2014, has taken in more than $1.5 billion and, as of April, the state’s public schools have received $404.5 million of the total revenue generated from adult-use cannabis sales in the state.

California, where adult-use sales began in 2018 despite being the first state to legalize cannabis for medical use, has collected about $2.1 billion from adult-use sales. The state saw a 62% revenue increase from cannabis sales from 2019 – about $638 million – to 2020 when revenues reached $1 billion for the first time.

Oregon, which launched adult-use sales in 2016, has garnered slightly more than $540 million over nearly six years of sales, which 40% of revenues being distributed to schools.

Nevada has generated $374 million from cannabis sales since they began in the state in 2017. In the first two months of 2021, the state had netted about one-fifth of the total tax revenues it saw in 2020.

Illinois, which launched adult-use sales six months after the Legislature approved the reforms, has already added nearly $295 million to its coffers from adult-use cannabis sales. In 2020 – the first year of sales – the state generated $174.9 million from sales and almost $120 million already this year.

Massachusetts, the first New England state to allow sales, despite being the second (after Maine) to approve the reforms, has gleaned more than $260 million from adult-use sales, which began in 2018. Through the first two months of this year, the state has already collected nearly half (about $64 million) of what it saw it collected in all of last year (about $118.5 million).

Michigan has reaped about $137 million from adult-use sales since 2019. The state Department of Treasury reported in March that nearly $10 million has been disbursed to municipalities and counties and around $11.6 million will be sent, this year, to the School Aid Fund for K-12 education and another $11.6 million to the Michigan Transportation Fund, once appropriated.

Alaska, the least populated of all the states to legalize adult-use sales, has garnered $78.2 million since the retail launch in 2016. The MPP notes that “a number of factors initially resulted in slower revenue generation than in some other states,” including the lack of dispensaries allowed under the state’s medical cannabis program, which limited the number of businesses that could transition to the adult-use market. The report also said that, due to a limited supply chain, “many stores closed for large stretches of January 2017 or operated with reduced hours.”

Maine has, so far, seen the lowest amount of revenue from adult-use sales, with just $1.7 million since last year. The rollout of retail sales, which voters approved in 2016, was marred by vetoes from former Republican Gov. Paul LePage and then slowed by the coronavirus pandemic.

So far this year, lawmakers in New York, New Mexico, and Virginia have approved the reforms, but sales have not commenced. During the 2020 election, voters in New Jersey, Arizona, Montana, and South Dakota approved adult-use sales; however, in South Dakota the amendment is being challenged in the state Supreme Court.

In Vermont, which legalized use, possession, and cultivation but not sales in 2018, an adult-use market is expected to open next year.

 

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