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California Cannabis Distributor Herbl Collapses

6/23/2023

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California cannabis distributor Herbl is shutting down its operations and entering receivership, according to an MJBizDaily report.

Herbl was one of the largest licensed cannabis distributors in California’s cannabis industry, which operates on a mandatory distributor model, meaning all brands must sell their products through licensed distributors like Herbl. The company reportedly handled about $700 million in product sales in 2022.

It marks the largest collapse so far of a California cannabis brand, and the development could leave other brands out potentially tens of millions of dollars in unpaid invoices; the state may also be owed millions still in unpaid taxes, the report said.

“The recent receivership of Herbl, one of California’s largest cannabis distributors, should be a wake-up call to policymakers that all is not well, and immediate action is called for to avert a crisis that has already started. Herbl was well-run, well-financed and stocked with well-known brands. However, even with these advantages, it was unable to overcome the structural challenges of operating in California and now finds itself in receivership.” — Wesley Hein, President of the Cannabis Distribution Association, via MJBizDaily

Former Herbl employees mentioned on LinkedIn last week that they were searching for new jobs. The company has reportedly laid off the majority of its workforce, leaving just a “skeleton crew” pursuing payments from retailers while fielding calls from other California operators who are in turn looking for payments owed to them by Herbl, according to the report.

The company started to miss payments to other brands about six weeks ago, the report said.

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Report: Oklahoma Growers Producing 64 Times More Medical Cannabis Than Market Demand

6/23/2023

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Oklahoma medical cannabis growers may be producing 64 times more cannabis than needed for the state’s patient population, according to a Cannabis Public Policy Consulting study commissioned by the Oklahoma Medical Marijuana Authority (OMMA). The study used data from the state’s newly implemented seed-to-sale tracking system and surveys of more than 1,300 cannabis patients.

According to the report, “the supply-to-demand ratio of [Oklahoma’s] regulated medical marijuana supply to regulated medical cannabis demand is 64:1.” Given the general assumption that a market’s units of supply should not exceed double its demand, “the medical marijuana program has no less than 32 times more regulated marijuana necessary” — and the oversupply is “very likely adding to an illicit market both at the point of cultivation and the point of retail sale,” the report said.

Oklahoma has among the loosest medical cannabis program in the U.S. and over the last year, lawmakers have passed several bills seeking to reign it in, including requiring $50,000 bonds for cannabis cultivators, imposing a moratorium on new cultivation licenses, and giving OMMA the authority to shut down cannabis farms that damage the environment.

“The volume of oversupply within the regulated system coupled with low barriers to market entry suggest unlicensed/illicit cannabis cultivation operations are unlikely to be observed across the state, and that this illicit market may, in fact, be hiding in plain sight.” — Cannabis Public Policy, “An Empirical Assessment of Oklahoma’s Medical Marijuana Market,” June 2023

The study suggests that 38% of cannabis obtained in Oklahoma comes from the regulated market – either dispensaries or home grows – while 44% is obtained through the unregulated market and 18% is obtained from out-of-state adult-use dispensaries.

The report suggests that Oklahoma continue to extend the moratorium on cannabis cultivation licenses through 2026 and authorize OMMA to seize and destroy cannabis products that are not logged in the seed-to-sale systems, among other steps to address the state’s oversupply issues.

Editor’s note: This article was updated to clarify that Oklahoma’s estimated medical cannabis oversupply is 64 times more than the state’s current demand, not 64 times more than what is needed in terms of patient access.

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Florida Court Upholds Firing of Corrections Officer for Medical Cannabis Use

6/23/2023

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A Florida appeals court on Wednesday upheld the firing of a Department of Corrections officer for using medical cannabis, WOKV reports. A three-judge panel of the 1st District Court cited federal law and a job requirement that officers are able to use firearms.

The case was brought by Samuel Velez Ortiz, a former sergeant for the Department of Corrections who was approved by a physician to use medical cannabis to treat post-traumatic stress disorder related to previous military service. Velez Ortiz had failed a random drug test in 2021, which led to his termination under the department’s “zero tolerance” policy for drugs. Velez Ortiz challenged the firing, taking the dispute to the 1st District Court of Appeals after the state Public Employees Relations Commission backed his termination.

In the ruling, written by Judge Clay Roberts and joined by Judges Stephanie Ray and M. Kemmerly Thomas, the panel said that although Velez Ortiz “can legally possess and use medicinal marijuana under state law, his use of it is illegal under federal law.”

“Accordingly, he cannot lawfully possess a firearm. Each time he does, he is committing a felony. And each year, he is required to possess a firearm to qualify. As a result, he is violating his requirement to maintain good moral character, which is required to keep his correctional officer certification.” — Roberts, in the ruling, via WOKV

In their brief, lawyers for the state wrote that Velez Ortiz did not argue that the Corrections Department “may validly prohibit correctional officers from being under the influence of marijuana, including medical marijuana, while on the job, no matter whether the officer ingested that substance on or off-site.”

“Yet the department has no way to distinguish between an officer who is high on the job because he ingested medical marijuana from a person who ingested the same drug off-site. The result would be untenable risks to public safety,” the lawyers wrote. “A correctional officer who shows up to work high or experiencing the lingering effects of marijuana – including lack of focus and delayed reaction times – may not trigger alarm bells until the worst-case scenario has already come to pass.”

Velez Ortiz’s attorneys argued that the case revolved around “discrimination” against Velez Ortiz “for being a medical marijuana user” noting that he had never asked to use or possess medical cannabis on-site or during work hours.

The case is believed to be the first of its kind in the U.S.

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Bill to Regulate CBD and Kratom Products Passes North Carolina House Committee

6/23/2023

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A bill in North Carolina to regulate hemp-derived cannabis products passed the House Judiciary Committee on Wednesday, WRAL News reports. The measure would limit the CBD content of hemp-derived products to 200 milligrams, impose license requirements for selling the products, and create marketing and packaging regulations.

The bill also includes new regulations for kratom products, including an age requirement of 18 to purchase the products.

Under the measure, licensees must be 18-years-old, have not been convicted of a felony relating to a controlled substance within 10 years, allow inspection and sampling of products, and be current in filing and paying taxes.

The bill includes a schedule of licensing fees, including $5,000 for manufacturers, $2,500 for distributors, and $100 per location for both in-person and online retailers, up to $2,500. The licenses would need to be renewed annually.

Packaging of CBD products would need to be child-proof and include a warning label. The products would also need to include a list of ingredients, a statement that acknowledges the product is not approved by the federal Food and Drug Administration, list the total amount of hemp-derived cannabinoids in milligrams, and feature a code that could be scanned for more information. The measure also bans products that could appeal to children.

The legislation moves next to the House Appropriations Committee.

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Malta Still Hasn’t Awarded Any Cannabis Club Licenses

6/23/2023

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Editor’s note: This article was contributed by Johnny Green, Media and Content Director for the International Cannabis Business Conference.

Going into 2023, it appeared that Malta was poised to issue non-commercial cannabis club licenses in quick order. However, as we near the midway point of this year, the European nation has still yet to issue its first license.

Permitting non-commercial cannabis clubs was a key component of an adult-use legalization measure passed by lawmakers in Malta in late 2021. In addition to non-commercial cannabis clubs, adults 18 and over can carry up to seven grams of cannabis in Malta and cultivate up to four plants at their residences.

Club applications first became available in Malta nearly four months ago and while 26 applications have been submitted thus far, Malta’s government has yet to approve any of them.

Non-commercial cannabis club provisions

The head of Malta’s Authority for the Responsible Use of Cannabis Leonid McKay stated earlier this month that “just because we have 26 applications, it does not mean we will be granting 26 licences. There will be a rigorous vetting process.”

Each club license applicant must pay a €1,000 registration fee, as well as another €1,000 for the license itself for the first 50 members, if approved. For approved cannabis clubs — however many that proves to be — membership will be capped at 500 members.

The clubs cannot advertise, and they cannot ‘incite the use of cannabis.’ Additionally, clubs cannot be located within 250 meters of a school or ‘youth center.’
Adult citizens in Malta can only join one club at a time, the cannabis sold through the clubs must be labeled in a manner that ‘discourages cannabis use,’ and all packaging must include THC levels. Clubs that provide cannabis to members 18-20 years old must limit sales to products with capped THC levels.

Local banks provide reassurance

One thing that every non-commercial cannabis club will presumably need is a bank account, even though they are not permitted to generate profits. All revenue from club sales is mandated to be reinvested in the club’s efforts and to support club salaries.

While I suppose it’s possible to perform those functions without a bank account, financial tasks will obviously be much easier for clubs in Malta to perform with access to the nation’s financial system.

Thankfully, local banks, via the head of Malta’s Authority for the Responsible Use of Cannabis, provided reassurances earlier this month that they will indeed work with approved club applicants. Securing banking access was a vital component that the government was waiting for prior to approving licenses, yet it’s still unclear what other facets may be delaying approvals.

Malta was the first European country to pass a national adult-use legalization measure and remains the only country to have done so on the continent. It’s an important fact that international observers need to keep in mind, as it is extremely difficult to be the first country to do something when it involves cannabis commerce. However, patience appears to be running out in Malta and any further delays only benefit the unregulated market.

The expected licensing of Malta’s non-commercial cannabis clubs will be a major discussion topic at the International Cannabis Business Conference later this month in Berlin.

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Colorado Gov. Plans to Issue Pardons for Psychedelic Drug Convictions

6/22/2023

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During remarks at the Psychedelic Conference in Denver, Colorado Gov. Jared Polis said he plans to issue pardons for all criminal convictions in the state related to psychedelic drugs, Axios reports. Polis last month signed a bill to implement medical psilocybin legalization and decriminalize the personal use and cultivation of other natural psychedelics following a successful psychedelics decriminalization voter initiative in the state last year.

During his remarks, Polis also indicated that he wants insurance companies, including Medicare and Medicaid, to be required to cover the cost of psychedelic therapies.

“It is still ridiculous that in this day and age somebody suffering from anxiety, depression, [post-traumatic stress disorder] can get medical coverage for very costly prescription drugs but cannot get coverage for a treatment in a healing center that will address some of the underlying causes of the issue.” — Polis, in remarks during the Psychedelic Conference, via Axios

Polis said the pardons would prevent individuals from being held back from employment opportunities. In 2021, Polis issued 1,351 pardons for Coloradans convicted of cannabis possession.

The ballot measure approved by voters decriminalized the possession, cultivation and sharing of psychedelics and hallucinogens, such as psilocybin, ibogaine, mescaline, and DMT, for those 21 and older. Polis has called the reforms a “thoughtful, common sense approach.”

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Colombia Senate Rejects Cannabis Sales Bill

6/22/2023

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The Colombia Senate on Tuesday narrowly rejected a bill to allow legal cannabis sales to adults, Reuters reports. The measure failed despite having a majority of support in the chamber — 47 voted in favor and 43 opposed but, as a constitutional amendment, the bill needed support from 54 senators, leaving it just seven votes short.

Despite the vote, Interior Minister Luis Fernando Velasco indicated on Twitter that the administration of President Gustavo Petro would “insist on this issue.”

In an interview with La Prensa Latina, Liberal Party Senator Juan Carlos Losada said he doesn’t consider the vote as a “defeat.”

“We have taken a giant step, four years of putting such a controversial issue at the top of the public agenda, of the public debate. … Continuing to leave a substance that is legal in the hands of the drug traffickers and drug dealers is detrimental to the children of Colombia and detrimental to the country’s democracy.” — Losada to La Prensa Latina

The legislation included restrictions on the use and sale of cannabis and its derived products in schools and universities, and limited public consumption. Colombia currently allows some cannabis products for medical use, including oils and creams. Reforms passed in the 1980s and 1990s allow for personal cannabis use and cultivation up to 20 plants.

Only one South American nation, Uruguay, allows cannabis sales to adults.

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Workers at California Cannabis Distribution Company Vote to Join Teamsters Union

6/22/2023

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Workers at southern California-based cannabis distribution company Amuse on Wednesday voted to join the Teamsters Local 630.

In a statement, Elias Valenzuela Jr., a driver and member of the organizing committee who was previously a member of the United Auto Workers, said that “almost everyone” signed up when organizers first started handing out authorization cards, describing the process as “really quick.”

“People realized that this company isn’t moving with us, and we have to move up. A message I have for other cannabis workers about why they should unionize is corporate greed is still strong and alive, and it’s never going away until we stand up and say enough is enough.” — Valenzuela in a press release

Peter Finn, Teamsters Western Region vice president and Food Processing Division director, said the union is expanding its reach among California cannabis distributors because workers see the difference the union makes “firsthand.”

“They recognize the Teamsters is the best union to ensure that they have long-term, prosperous careers in this exciting, burgeoning industry,” he said in a statement.

Lou Villalvazo, Local 630 secretary-treasurer, said the union looks forward to getting the workers “a strong contract that addresses the issues that are important to them – security, regular wage increases, respect, and a voice on the job.”

Teamsters Local 630 represents workers in various industries, from clerical, warehouse, professional drivers, food service, liquor, food processing, and dairy.

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California Awards $4.1M to Help Expand Cannabis Retail Access

6/21/2023

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The California Department of Cannabis Control (DCC) on Tuesday awarded 18 municipalities $4.145 million in grants to expand access to licensed retail cannabis. Fourteen of the grants – totaling $870,000 – were awarded to jurisdictions that want to issue licenses to operators who have been negatively or disproportionately impacted by cannabis prohibition.

In a statement, Department of Cannabis Control Acting Director Rasha Salama said the program “will help provide access to regulated cannabis retail for over 2 million Californians that currently live in an area where access to licensed cannabis retail businesses is insufficient.”

Grant recipients can use the grant money to develop retailer licensing programs to assist in issuing retail cannabis licenses. This includes drafting and adopting ordinances, hiring staff and contractors, holding community outreach and engagement events, forming stakeholder workgroups or technical advisory committees, conducting economic studies and environmental reviews, developing application forms or online application portals, and processing and issuing cannabis retail licenses.

The first round of funding was prioritized for areas in California where national surveys find high cannabis consumption but where there is little to no access to legal cannabis retail, the DCC said in a press release, and incentivized local best practices by prioritizing programs that support social equity operators and use existing licensing and permitting practices.

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Wisconsin Supreme Court: Cannabis Odor Enough to Justify Vehicle Search

6/21/2023

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Wisconsin’s Supreme Court on Tuesday ruled 4-3 that the odor of cannabis is enough to justify police searches of vehicles, even though substances legal in the state can smell like illegal cannabis, the Associated Press reports. The decision overturns lower court rulings that said police officers could not be sure what they smelled was not a CBD product and, therefore, could not use the odor of cannabis as a reason to search a vehicle.

Wisconsin has not legalized cannabis for adult use.

The ruling focused on the case of Quaheem Moore, who in 2019 was pulled over alone for speeding and officers searched the vehicle he was driving based on the odor of cannabis. Moore told officers he was using a CBD vape pen and that the car was a rental that belonged to his brother. Police did not smell cannabis on Moore but upon searching him found cocaine and fentanyl. A circuit court judge and an appeals court had previously moved to disqualify the drugs that police found, saying the search wasn’t legal because cannabis odor was no justification for the search.

Justice Brian Hagedorn, who issued Tuesday’s opinion on behalf of the court’s conservative majority which disagreed with the lower courts, wrote that because Moore was the only person in the car, police could reasonably assume he “was probably connected with the illegal substance the officers identified.” The ruling referenced a 1999 U.S. Supreme Court decision that found officers were justified in arresting a driver because they linked cannabis odor in the vehicle to him and that the “unmistakable” smell of a controlled substance was evidence that a crime had been committed.

The Wisconsin Supreme Court’s three liberal justices dissented, saying the 1999 ruling cited by the majority was outdated and that in Moore’s case, the officers didn’t have strong evidence the cannabis odor was caused by Moore.

“Officers who believe they smell marijuana coming from a vehicle may just as likely be smelling raw or smoked hemp,” Justice Rebecca Frank Dallet wrote in a dissenting opinion, “which is not criminal activity.”

Other state courts have determined that, in the wake of federal hemp legalization, cannabis odor is not enough to justify the search of a vehicle or arrest of the driver. Maryland’s Supreme Court in 2022 ruled that officers can search vehicles based on cannabis odor but could no longer arrest a driver based on cannabis odor alone. In 2021, the Delaware Supreme Court made a similar decision. That same year a judge in Illinois ruled that raw cannabis odor was not enough to justify a search.

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Study: Illinois Teenagers Living Near Medical Cannabis Dispensaries Less Likely to Consume Cannabis

6/21/2023

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Teenagers in Illinois who live in ZIP codes that have medical cannabis dispensaries are less likely to consume cannabis than those who live in areas without them, according to a study by researchers at the University of Illinois Urbana-Champaign published in the journal Cannabis.

Using data from the Illinois Youth Survey, the researchers found that about 18.3% of the youths living in Illinois ZIP codes with medical dispensaries reported consuming cannabis during the prior year compared with 22.4% of those who lived in ZIP codes without the businesses.

In a statement, Doug Smith, director of the U. of I. Center for Prevention Research and Development, called the study’s findings “good news,” noting that “there are still reasons to be cautious and continue monitoring things.”

“The good news is that it looks like in Illinois there was no immediate impact on adolescent substance use rates after medical dispensaries came on. In fact, we found that across the whole sample, those who lived in a ZIP code with a dispensary were less likely to have used cannabis during the past 30 days or one year.” — Smith in a press release

Smith added that the survey’s results are a “head-scratcher” but said the results could be due to when the survey was taken – in 2018 – when there were just 53 dispensaries operational throughout the state.

“However, we need to combat the hysteria that legalizing cannabis is going to have a wild and resounding impact on teens in terms of substance use rates and prevalence,” Smith said. “That’s simply not the case.”

The average age of the students surveyed was 15 years old and the majority of the students in the sample were white (43%) or Latino (26%). Most of those surveyed – 47% – were from suburban Chicago, with 21% from other cities, 18% from rural areas, and 14% from Chicago.

About 32% of the Chicago youths in the study lived in ZIP codes where medical cannabis dispensaries were operating compared with 3.5% of those living in rural areas.

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NCAA Considers Removing Cannabis from Drug Testing Protocols

6/20/2023

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The NCAA Committee on Competitive Safeguards and Medical Aspects of Sports (CMAS) last week indicated its support for removing cannabis from the association’s banned drug list and testing protocols. The committee will gather input from the membership this summer, with final action expected in the fall. The issue was referred to the committee by Divisions II and III.

The NCAA said the rationale for the change is due, in part, to the “consensus opinion that cannabis is not a performance-enhancing drug and that a harm reduction approach to cannabis is best implemented at the school level.” The reforms would treat cannabis more like alcohol, the NCAA said.

For the cannabinoid class to be removed from the NCAA list of banned drugs, each of the three NCAA divisional governance bodies would have to introduce and adopt legislation, the organization said in a press release. The committee will also seek support from the NCAA Board of Governors to stop testing for cannabis at NCAA championship events while the action is considered.

CMAS also signaled its support for the development of a comprehensive communication and education campaign that provides guidance to the membership about cannabis.

Additionally, the NCAA plan an education campaign for student-athletes “on the health threats posed by contemporary cannabis and methods of use” and a “realigning toward institutional testing and how that testing supports/enhances campus efforts to identify problematic cannabis use.”

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Nevada Gov. Signs Bill to Increase Cannabis Possession Limits & Reduce Industry Restrictions

6/20/2023

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Nevada Gov. Joe Lombardo (R) last week signed an omnibus cannabis bill into law that more than doubles the state’s personal possession limit and removes other industry restrictions, according to a Marijuana Moment report.

The measure, sponsored by state Sen. Dallas Harris (D), immediately raises the purchasing and possession limit from one ounce of cannabis flower to two and a half ounces, and from an eighth of an ounce of cannabis concentrate to a quarter of an ounce.

The law also adjusts the state’s cannabis industry regulations as such:

It removes the need for adult-use shops to hold a medical license in order to serve medical cannabis patients.
It blocks the issuing of any further medical cannabis licenses starting January 1, 2024, except in regions where adult-use sales remain prohibited.
It reduces cannabis licensing and renewal fees are to be reduced under the new law.
It allows for past felons to receive cannabis industry licenses at the discretion of the Nevada Cannabis Compliance Board, so long as it first “determines that doing so would not pose a threat to the public health or safety or negatively impact the cannabis industry in this State,” the report said.
It mandates the state Cannabis Advisory Commission investigate how removing cannabis from both the federal Controlled Substances Act and the Nevada Uniform Controlled Substances Act could affect the industry.
Lastly, it requires officials to consider how future changes to the industry could affect the environment, and determine ways to mitigate or offset potentially harmful outcomes.

The Nevada cannabis industry recorded nearly $1 billion in retail sales for the fiscal year 2022.

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Pennsylvania Awards More Than $390K in Grants for Hemp Industry Awareness Projects

6/20/2023

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Pennsylvania on Sunday awarded $392,265 in grants to three agriculture non-profits to fund fiber and food hemp market awareness in the state. Agriculture Secretary Russell Redding said the grants will “feed the growth of an industry that was once a staple of Pennsylvania’s economy and is once again growing opportunities for new businesses, farm income, jobs, and climate-smart, environmentally sound products.”

Vytal Plant Science Research received the largest grant – $315,765 – to introduce a STEM curriculum to high schools and universities to effectively engage in industrial hemp production, management, and cultivation by promoting and marketing industrial hemp for its many uses such as food, fiber, fuel, industrial, and personal care products.

Vytal is a non-profit that sponsors research at Penn State Harrisburg’s Central Pennsylvania Research and Teaching Laboratory for Biofuels.

The Pennsylvania Hemp Industry Council was awarded $56,000 for an awareness campaign to promote the benefits of hemp and create new markets for hemp-based products.

The U.S. Ecological Advanced Research & Conservation Hub Hemp Certificate Program for Disadvantaged Communities (USEARCH) was awarded $20,500 to develop an educational program for disadvantaged communities including youth, veterans, and women to enable them to get involved in the hemp industry.

Grant funds will reimburse up to half of the project costs. In all, the state Agriculture Department has invested $1.5 million in the state’s hemp industry. In January, the agency awarded $200,000 in grants to three non-profits in the state.

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Georgia Man Sentenced to 3 Years for Using Hemp Business to Defraud Farmers

6/20/2023

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A Georgia man last week was sentenced to three years in federal prison and ordered to pay more than $2 million in restitution for his role in defrauding farmers in a hemp business venture.

Rahsaan Jackson Garth, 49, was found to have misrepresented his business, Verde Leaf, to farmers that had entered into contracts with him, claiming that the company had contracts and distribution deals with food, pet, and pharmaceutical companies, which he did not.

Ultimately, Garth was unable to finalize any distribution contracts and, therefore, was unable to process the hemp or pay most of the farmers for their crops and Verde Leaf declared bankruptcy.

“As a result of the false statements that lured the farmers into doing business with Garth, the farmers suffered great financial harm.” — U.S. Attorney’s Office, District of South Carolina, in a press release

Garth was released from federal prison in 2017 for charges related to healthcare fraud and almost immediately formed Verde Leaf. The company was supposed to address the challenges farmers faced in the hemp sector including license acquisition, hemp cultivation and processing, and industry knowledge. Garth solicited multiple farmers in South Carolina, North Carolina, and Georgia to grow hemp for the company.

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Vermont Increases Home Grow Limits and Expands Access for Cannabis Patients

6/19/2023

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Medical cannabis patients in Vermont can now grow 12 plants, up to six mature, and medical cannabis products can now contain up to 100 milligrams of THC per serving, under legislation that Gov. Phil Scott (R) allowed to become law without his signature. The bill also adds post-traumatic stress disorder to the state’s medical cannabis qualifying conditions list.

In a letter to lawmakers, Scott said he allowed the measure to become law without signing it because the measure repeals the sunset of the Cannabis Control Board, which he says “appears minor, but in fact has substantive consequences for the principle of separation of powers.”

“I understand there is a need for an alternative structure for regulating controlled substances that remain federally illegal so that we do not compromise federal funding. However, when removing the sunset on the CCB, the statutory authority of the CCB needs to be clarified to ensure constitutionality and accountability to the governor.” — Scott in the letter

In the letter, Scott notes that once appointed, CCB members may only be removed for cause by the other two CCB members and that the agency “has added staff, taken over the regulation of medical cannabis and the medical registry, and grown to be an approximately 22-member department.”

“As an independent entity, the CCB regulates a multi-million-dollar industry with no oversight,” the governor wrote in the letter. “Again, while I have complete confidence in the current CCB, this lack of oversight creates the risk for future mismanagement, conflicts of interest and other harmful impacts.”

Scott said he plans to work with the CCB and lawmakers on legislation that would “make the modifications necessary to clarify the statutory authority of the CCB is constitutional.”

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Arkansas Judge Voids 27 Medical Cannabis Laws Passed by Lawmakers to Change Voter-Approved Amendment

6/19/2023

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An Arkansas judge last week voided 27 medical cannabis laws passed by lawmakers to amend the voter-approved law, calling the changes unconstitutional, THV11 reports. The laws voided were passed in 2017, 2019, and 2021 and included THC limits on edibles, how the state collected taxes on cannabis, and industry marketing.

The lawsuit was brought by cannabis companies Good Farm Arkansas and Capital City Medicinals against the State of Arkansas, and the Department of Finance and Administration, and Alcoholic Beverage Control Division.

Following the ruling, Arkansas Attorney General Tim Griffin, said the ruling by Judge Morgan “Chip” Welch was disappointing and “contrary to the law.” He said he plans to appeal the decision to the state Supreme Court “expeditiously.”

Of the now null and void laws, 24 of them were passed in 2017, two in 2019, and one in 2021. Among them include the law creating the state’s Medical Marijuana Commission, allowing criminal background checks for cannabis business licensees, banning Arkansas National Guard members from being caregivers for medical cannabis patients, a telemedicine ban for medical cannabis patients, tax laws, medical cannabis packaging, cannabis cultivation facility safety and security requirements, and others.

The original text of the amendment that was approved by voters to legalize medical cannabis will remain in effect as initially written.

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Alabama Pauses Medical Cannabis Licensing Due to ‘Potential Inconsistencies’ in Scoring Data Tabulation

6/19/2023

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The Alabama Medical Cannabis Commission (AMCC) on Friday voted to pause all proceedings related to the issuance of medical cannabis licenses in the state after the agency’s “discovery of potential inconsistencies in the tabulation of scoring data.”

The stay comes just four days after the AMCC awarded its first medical cannabis licenses to four cultivators, four processors, four dispensaries, five integrated facilities, three secure transporters, and one testing laboratory.

In a statement, AMCC Director John McMillan said the agency “will work expeditiously to investigate and identify inconsistencies in the score data.”

“Out of an abundance of caution, we are suspending all current procedural timelines until those matters are resolved.” — McMillan in a press release

The commission indicated it plans to seek an independent review of all scoring data before proceeding with licensing.

The stay issued by the commission impacts the following procedural requirements of the program:

Applicants who were awarded a license on June 12, 2023, are not required to pay the license fee by June 26, 2023.
Applicants who were denied award of license on June 12, 2023, are not required to submit a request for an investigative hearing by June 26, 2023.
Licenses that were awarded on June 12, 2023, will not issue on July 10, 2023.

The stay will remain in effect until lifted by the commission and, once lifted, the AMCC will reconsider the award of licenses, and provide a timeline for the payment of license fees, request for investigative hearings, and issuance of licenses.

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Survey: Cannabis Less Harmful than Cigarettes, Vapes, Alcohol, & Opioids

6/16/2023

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A survey by the American Psychiatric Association (APA) and Morning Consult found Americans believe cannabis is less harmful than cigarettes, vapes, alcohol, and prescribed and non-prescribed opioids but more harmful than technology.

The survey also found that respondents believed that cannabis was less addictive than cigarettes, vapes, alcohol, prescribed and non-prescription opioids, and technology.

In a statement, APA President Dr. Petros Levounis said the survey showed “It is clear that we have gotten the message through that cigarettes are dangerous and addictive.”

“We can help prevent more Americans from other potentially addictive behaviors, like drinking alcohol and technology use. For instance, vaping is just as, if not more addictive than cigarette smoking. We can also make sure that people know about our current safe and effective treatments for both substance use disorders and the behavioral addictions. Addiction treatment works.” — Levounis in a press release

Among those surveyed, 13% said they consumed cannabis daily, along with 21% who smoked cigarettes daily, 8% that used vapes daily, 7% that consumed alcohol daily, 4% that used prescribed opioids daily, 2% that used non-prescribed opioids daily, and 67% that used technology daily.

The poll was conducted April 20-22, 2023, and included a sample of 2,201 adults.

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New York Regulators Shut Down 16 Shops for Selling Cannabis Without a License Over Last Week

6/16/2023

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New York regulators on Thursday shut down five unlicensed businesses selling cannabis in Ithaca and Binghamton and the companies now face fines of up to $10,000 per day they were selling cannabis without a license.

The Office of Cannabis Management (OCM) and Department of Taxation and Finance (DTF) also seized products, which is allowed under recently-approved emergency rules. The action targeted three businesses in Ithaca and two in Binghamton. The shops will next be subject to hearings before an administrative law judge and, if found to be non-compliant, the judge may confirm the fines assessed and require unlicensed operators to pay them.

If an unlicensed location is found to continue selling cannabis products after OCM issues a notice of violation or order to cease, an additional per-day penalty of up to $20,000 may be assessed by an administrative law judge. Further, should the unlicensed business remove the OCM violation notices affixed to the storefront, the business is subject to a fine of up to $5,000.

The OCM said it had also conducted inspections of businesses in New York City last week and issued notices to 11 of them.

All fines must be confirmed by an administrative law judge and the businesses may also face penalties under state tax and finance laws.

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Maryland Suspends a Cookies Dispensary License After Video Shows Cannabis Smoke Shot from ‘Gun Apparatus’ into Peoples’ Mouths

6/16/2023

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The Maryland Cannabis Administration (MCA) has temporarily shut down a Cookies dispensary following several violations, including a video that “appeared to show large plumes of medical cannabis smoke being blown from a large gun apparatus into the mouths of persons outside the dispensary,” according to the suspension notice outlined. The action came less than a week after Cookies held the dispensary’s grand opening on May 27.

Inspectors also cited Cookies for advertising online in a way that “targets or is attractive to minors, including a cartoon character.” The notice also said that Cookies social media advertisements violate the agency’s rules for including the likeness of two, unnamed, celebrities, using “at least three publicly known non-cannabis trademarks,” and the use of cannabis in the ads.

The dispensary is also accused of refusing to provide inspectors with material needed for their investigation, including security footage, despite being asked several times. Inspectors said Cookies did not maintain security footage, which “constitutes an operational failure risking diversion and endangering the public’s health.”

Additionally, the MCA said the dispensary did not have a secure door between its service and operational areas which “also creates a risk of operational failure risking diversion because the purpose of the door is to help monitor and limit the number of cannabis agents with access” to all parts of the dispensary.

Cookies has 30 days from the date of suspension to request a hearing and could face a $10,000 fine per violation.

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Alabama Awards First Medical Cannabis Licenses

6/15/2023

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The Alabama Medical Cannabis Commission (MCC) on Monday awarded its first round of business licenses to four cultivators, four processors, four dispensaries, five integrated facilities, three secure transporters, and one testing laboratory.

In a statement, MCC Chairman and oncologist Dr. Steven Stokes said “There was no shortage of qualified individuals and entities who provided applications” for officials to consider.

“Based on the evaluators’ assessments and the Commission’s considerations, we believe that we have selected an outstanding slate of inaugural licensees to represent Alabama’s new medical cannabis industry.” — Stokes in a press release

Under the state’s medical cannabis law, the commission can award up to 12 cultivator licenses, four processor licenses, four dispensary licenses, five integrated facility licenses, and an unspecified number of secure transporter and laboratory licenses.

MCC Vice Chairman Rex Vaughn indicated the state plans to open a second round of licenses for cultivators, transporters, and labs.

“These businesses will not only serve the patients of Alabama but provide business and job opportunities for local communities,” he said in a statement.

The applications for the 90 companies were reviewed by the University of South Alabama.

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New York Approves Emergency Rules to Crack Down on Unlicensed Cannabis Sales

6/15/2023

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New York cannabis regulators are permitted to seize products from unlicensed cannabis retailers in the state under recently adopted emergency regulations. The new rules cover unlicensed sales of both hemp and delta-9 THC products.

The regulations describe the processes by the Office of Cannabis Management (OCM) for shutting down unlicensed cannabis sales, including affixing a notice of violation and order to cease unlicensed activity on a door, window, or exterior of the building, along with a sticker “advising the public that the business is ordered to stop the unlawful activity and of the public health and safety concerns relating to illicit cannabis.”

Removing either the sign or the sticker could result in a $5,000 fine, under the new rules.

The regulations also give the agency subpoena power and the ability to bring the case before an administrative law judge.

In a statement, Chris Alexander, OCM executive director, described the rules as “a robust framework to address violations head-on, bolstering [OCM] enforcement efforts and ensuring proper compliance with cannabis laws.”

New York regulators have been slow to roll out retail cannabis sales. According to state data, there are currently just 13 licensed adult-use dispensaries, with four licensed as “temporary delivery only.”

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Non-commercial cannabis club provisions

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