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Washington Lawmakers Pass Bill With Hiring Protections for Cannabis Consumers

4/10/2023

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Washington state lawmakers have approved a measure that prohibits denying an individual a job due to their off-the-clock cannabis use, the Washington State Journal reports. The measure still requires reconciliation as the House version excludes safety-sensitive positions – such as first responders or corrections officers – from protection under the bill, while the Senate version does not include those exemptions.

Both bills would prohibit discrimination from employers in the hiring process if it is based on an applicant’s cannabis use off-the-clock or if an employment drug test shows non-psychoactive cannabis, such as CBD.

State Sen. Karen Keiser (D), the bill’s sponsor, said that because cannabis metabolites can remain in a person’s system for weeks, drug tests for cannabis do not determine whether someone is impaired.

“It simply doesn’t make sense to base an employment decision on that kind of unreliable outcome and test. It really comes down to discriminating against people who use cannabis.” — Keiser via the Journal

Washington state Rep. Shelley Kloba (D) noted that the measure does not affect post-hiring workplace drug policies.

“This bill simply says that a person can’t be expected to follow the rules of a workplace where they are not employed,” Kloba said in an interview with the Journal. “I think that this will have a positive impact on broadening the pool of workers available for jobs.”

The measure passed the Senate 28-21 and the House 57-41. The reconciled version of the bill must still pass both chambers before moving to the governor’s desk for final approval.

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Former Michigan Medical Cannabis Board Head Pleads Guilty to Accepting Bribes

4/07/2023

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The former head of a Michigan medical cannabis licensing board on Thursday pleaded guilty to accepting $110,000 in bribes in exchange for industry licenses, CBS News reports. Rick Johnson served as head of the board for two years and served as state House speaker from 2001-2004 when Republicans controlled the chamber.

During a press conference on Thursday, U.S. Attorney Mark Totten announced the charges against Johnson, John Dalaly, Brian Pierce, and Vincent Brown. All four signed plea deals admitting the charges.

Dalaly, who was granted a medical cannabis license during Johnson’s tenure, pleaded guilty to providing at least $68,200 in cash and other benefits to Johnson, including two private flights to Canada, according to court documents outlined by CBS News.

Pierce and Brown were lobbyists who also pleaded guilty to conspiring to pass bribes to the former lawmaker.

“Public corruption is a poison to any democracy. … That poison is especially toxic here. The marijuana industry has been likened to a modern-day gold rush, a new frontier where participants can stake their claim and just maybe return big rewards.” — Totten, during a press conference, via CBS News

All four men are expected to be arraigned in the next one to two weeks, Politico reports. Johnson and Dalaly face a maximum of 10 years in prison and a fine of $250,000. Pierce and Brown face a maximum of five years in prison and a fine of $250,000.

Under the plea agreement, Johnson agreed to forfeit the $110,000 in bribes and the U.S. Attorney’s Office agreed not to oppose his request for a reduction in offense level, which would impact his sentencing.

Gov. Gretchen Whitmer (D), in 2019, abolished the medical cannabis board and put oversight of the industry inside a state agency.

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Missouri Total Cannabis Sales Reach $125M in March

4/07/2023

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Missouri total cannabis sales topped $125 million in March, according to the state Division of Cannabis Regulations data outlined by KSHB. The total includes $93.5 million in adult-use sales and $32.7 million in medical-use sales.

In a statement, MoCannTrade Executive Director Andrew Mullins said Missouri has “one of the most customer-friendly cannabis programs in the entire nation.”

“Between record cannabis sales and local communities voting to embrace the economic benefits of adult use sales, Missouri couldn’t be better positioned to make a real and lasting impact on our state economy.” — Mullins, in a statement, via KSHB

Adult-use cannabis sales launched in Missouri in February and are so far on track to surpass $1 billion annually. The state sold $102 million worth of cannabis in February which represented the third-highest total for first-month adult-use cannabis sales behind only California and Arizona, according to a Flatland KC report. Comparatively, Illinois, which borders Missouri and has twice the population of Missouri, saw $39.2 million in cannabis sales the first month after adult-use sales commenced.

Missouri’s high sales figures could be partly due to the prohibitionist policies of its border states – neither Nebraska, Arkansas, Oklahoma, nor Iowa have legalized cannabis for adult use.

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New Hampshire House Approves Adult-Use Cannabis Legalization Bill

4/07/2023

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The New Hampshire House on Thursday passed an adult-use legalization bill by a 272-109 vote, The Center Square reports. The measure moves next to the state Senate.

New Hampshire is the lone New England state to not allow cannabis sales to adults.

In a statement, Republican Rep. Jason Obsorne, a co-sponsor of the legislation, said he is “pleased to see New Hampshire take a step toward relieving gangsters and thugs from control of this market” and keep “dangerous untested products away from consumers, and protecting children from harmful age-inappropriate products.”

Democratic Rep. Matt Wilhelm, who also co-sponsored the bill, described the bill’s passage as “decisive” and sending a “strong message that this is the year to legalize adult-use cannabis in the Granite State.”

“Every year we fail to legalize marijuana, the state wastes valuable resources and ruins the lives of many young and poor Granite Staters by enforcing failed prohibition. New Hampshire remains the only state in New England that has failed to legalize cannabis, while our neighbors benefit from increased revenue and their cannabis users benefit from safer testing and regulation of the product. Legalization of adult possession of small amounts of cannabis is the right thing to do for New Hampshire and we must get it done in 2023.” — Wilhelm, in a statement, via The Center Square

In January, Gov. Chris Sununu (R) told New Hampshire Public Radio that he didn’t expect a cannabis legalization bill to make it to his desk this session. Sununu opposed the reforms. The state Senate has never passed an adult-use legalization bill but the House has passed the reforms on two previous occasions.

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Study: 1 in 10 Military Veterans Have Used Cannabis Over Past Year

4/06/2023

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A study published last month by researchers at the University of North Texas Health Science Center and College of Applied Health Sciences, University of Illinois at Urbana-Champaign found one in 10 military veterans reported using cannabis over the past year.

The study was published in the Substance Use & Misuse journal using data from the National Survey on Drug Use and Health (2013-2019) comprised of 16,350 veterans 18-years-or-older. The researchers found that veterans aged 65-and-older were more likely to define their cannabis use as medical compared to younger veterans who most often described their cannabis use as recreational.

“Our findings, taken in context with current federal policy, point toward a need for enhanced care coordination among veterans who may benefit from marijuana, but are unable to access it through the [Veterans Affairs],” the researchers concluded. “Additional research is needed to better understand veterans’ use of a marijuana in the context of federal VA restrictions, including the examination of how veterans obtain marijuana, what affect this has on their care coordination and health outcomes, and whether or not marijuana can play a role in reducing other drug use and drug-related harms among veterans.”

According to a survey published last year by the group Iraq and Afghanistan Veterans of America (IAVA), 75% of military veterans “would be interested in using cannabis or cannabinoid products as a treatment option if it were available.” That survey found 83% of respondents supported legalizing medical cannabis access, with 68% agreeing that the VA “should allow for research into cannabis as a treatment option.” Twenty percent of survey respondents indicated they had used cannabis for medical purposes.

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Small Trial Suggests DMT Can Improve Symptoms of Depression

4/06/2023

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A trial conducted by biotechnology company Small Pharma found that the psychedelic DMT could improve symptoms of depression when used in conjunction with therapy. In the study, which used intravenous DMT dosing, 14 participants out of 34 were in remission from depression within three months and nine remained in remission up to six months.

The study, which utilized a proprietary synthetic formulation of DMT known as SPL026, has not been peer-reviewed.

In a press release, Dr. Carol Routledge, chief medical and scientific officer at Small Pharma, said the team is “increasingly encouraged by the treatment potential” of the drug.

“A single dose in conjunction with therapy demonstrated a rapid and robust antidepressant effect after one week. This new data shows that the antidepressant effect was sustained for six-months in two-thirds of patients who were in remission at an earlier time-point in the study.” — Routledge in a statement

The first part of the study involved 34 patients being given the treatment during a two-and-a-half-hour clinical session with a therapist and a therapy session followed which helped participants process their experience. The second part of the study followed participants for another three months after being administered the drug, and then six more months after the study had come to an end in an assessment of its durability.

In a joint statement, Robin Carhart-Harris PhD, director of the psychedelics division at the Weill Institute for Neurosciences at the University of California San Francisco, and Ralph Metzner distinguished professor of Neurology, Psychiatry and Behavioral Sciences, said the study’s results suggest that the drug “can elicit a fast-acting antidepressant response that appears to be enduring in several cases.”

“Recent neuroimaging and preclinical findings imply a regenerative action with DMT and other related serotonergic agonists,” Carhart-Harris and Metzner said in the statement.

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Minnesota Rep. Wants Task Force to Explore Legalizing Psychedelics as Mental Health Treatment

4/06/2023

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A Minnesota state representative is proposing creating a task force focusing on using psychedelics to treat mental illnesses, KIMT News reports. The taskforce would focus on LSD, MDMA, and psilocybin and make recommendations on how to legalize the substances responsibly for medical use.

State Rep. Andy Smith (D) told KIMT that the psychedelics “have incredible potential to help people who are suffering from depression and at a much cheaper cost.”

“Unfortunately, most of these drugs kind of got wrapped around the war on drugs in the 1980s and so there’s a lot of antiquated laws that are stimming both the research and allowing these drugs to be used in treatment. The goal of the taskforce is to see how we can roll back those regulations well and responsibly.” — Smith to KIMT

Smith added that “Antidepressants are expensive . . . and these drugs you can usually take them much cheaper.”

The task force proposal is included in a measure being considered by the chamber in a Health, Finance, and Policy bill. The House is expected to vote on the legislation later this month or early next month, the report says.

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Report: Millennials and Gen Z Make Majority of Legal Cannabis Purchases in U.S. and Canada

4/05/2023

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Millennials and Gen Z account for the majority of legal cannabis sales in the U.S. and Canada, according to a recent report from cannabis analytics firm Headset. In all, the cohort comprises 72.1% of all tracked sales in Canada and 63% of all tracked sales in the U.S.

The percent share of total sales among Millennials has grown 11.3% year-over-year, while the percent share among Gen Z has grown 6% year-over-year, Headset said in a press release.

Headset also found that while males account for about two-thirds of cannabis sales in the U.S. and Canada, since January 2021 the firm has seen an increase in cannabis purchases among women – equal to 1.2% in Canada and 0.27% in the U.S.

The analytics firm also found that vape pens represented 33.6% of total sales to Gen Zers in January and February and noted that the demographic is “the first … to dethrone flower as the top consumer category.”

Headset found that Gen Z and Millennial consumers also spend slightly less per average basket – below $55 – while Gen X and Baby Boomer consumers, on average, spent more than $60 per basket.

In a statement, Cy Scott, founder and CEO of Headset, said the data can “help brands plan for the future and build a sustainable, thriving business.”

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New Mexico Cannabis Sales Reach $300M in First Year

4/05/2023

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Adult-use cannabis sales in New Mexico reached more than $300 million during the first year they were permitted, the Associated Press reports. Adult-use sales began in the state on April 1, 2022 and the state has collected $27 million in cannabis excise taxes since the market’s launch.

Cannabis retailers located near its border with Texas – the largest state where cannabis remains outlawed – accounted for more than $19 million of New Mexico’s adult-use cannabis sales, the report says.

Medical cannabis sales in the state totaled $187 million during that span.

In all, there are 633 dispensaries throughout New Mexico.

The state imposes a 12% tax on adult-use cannabis sales and lawmakers are considering a proposal that would create two new programs funded by cannabis excise tax revenues, including a community reinvestment grant fund and a substance use disorder prevention and treatment fund. Currently, all cannabis excise tax revenues are sent into the state’s general fund and the bill would earmark a third of cannabis taxes for the new programs.

New Mexico’s adult-use cannabis sales in March reached a record high of $32.4 million through 725,572 transactions, according to data from the Cannabis Control Division. Medical cannabis sales totaled about $32.4 million through 287,904 transactions.

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1,500+ Pending Cannabis Cases Dropped by Connecticut Chief State Attorney’s Office

4/05/2023

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Connecticut’s chief state attorney’s office has dropped 1,562 cannabis possession charges following a review of more than 4,000 pending cases, CT Insider reports. The review and dismissal of cases came as state lawmakers are drafting a bill to order the state Division of Criminal Justice to stop prosecuting cannabis-only cases. The proposal is part of the follow-up to the full legalization of cannabis in Connecticut.

Another 624 cases reviewed by Chief State’s Attorney Patrick J. Griffin’s prosecutors will be modified to drop cannabis from the overall charges.

“It has been the shared position of this committee and the division that persons charged with a possession of a cannabis-type substance offense that has subsequently been decriminalized should not be prosecuted for that offense. Thus, identifying these cannabis cases could not be accomplished merely by conducting a computerized review of pending cases. The 4,248 cases statewide including 2,139 pending and 2,109 in re-arrest status. This was no small task and quite labor intensive.” — Griffin in a letter to the General Assembly’s Judiciary Committee via CT Insider

In an interview with CT Insider, State Rep. Greg Howard (R), who is also a police officer, called the review “remarkable.”

“…When the chief state’s attorney testified, he assured us that while the statute doesn’t specifically say that it was retroactive to pending cases, he understands the legislative intent,” Howard said, “he accepts that, and he has made that clear to all of his state’s attorneys and obviously they have been hard at work about that.”

The bill ordering the criminal justice division to stop prosecuting cannabis cases last week passed the committee 27-10 along party lines. It moves next to the full chamber for consideration.

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SC Labs and ACT Laboratories Launch ‘Trust In Testing Certification’ to Set a Higher Standard for Cannabis Testing

4/04/2023

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The Trust in Testing Certification will help license holders and consumers identify high-quality lab testing and tested products to build more trust and transparency in the cannabis industry.

Today, ACT Laboratories and SC Labs are pleased to announce the Trust In Testing Certification, a set of enhanced national standards for cannabis testing. As the largest cannabis testing labs in the U.S., testing thousands of cannabis brands, SC Labs and ACT Laboratories are jointly taking a stand for consumer safety by outlining the most stringent lab quality requirements to ensure brands and consumers can trust their lab testing data. The initiative will help cannabis operators unify their testing protocols across their multi-state footprints, enable brands to build consumer loyalty, maintain investor and customer confidence, and, ultimately, provide safer products to the growing cannabis market.

Through over two decades of combined experience, ACT and SC have evaluated the lab regulatory standards across all states that have legalized cannabis today, and combined the most sensible and stringent quality standards to develop the Trust In Testing Certification. This includes more frequent and regular proficiency testing, the use of state-of-the-art quality management systems, and internal employee ethics and training programs, among other requirements. These standards ensure that labs are not only compliant with state regulations but are continuously raising the bar to provide partner brands and consumers with the most accurate and reliable results. This Certification is the lab’s burden to maintain for the benefit of brands, the end consumer, and ultimately the legal cannabis market at large. Brands that utilize a Trust in Testing Certified lab are allowed to put the Trust In Testing seal on their packaging, communicating to end consumers their commitment to quality.

“Today, the burden of identifying high-quality compliant labs falls on the operators and brands within each state. This leads to decentralized decision-making and considerable risk. Through the Trust In Testing Certification, brands now have a way of identifying labs that are meeting the highest threshold standards across states. It also allows brands to unify their own protocols in choosing a testing partner,” said Jeff Journey, CEO of SC Labs. “SC Labs is proud to be partnering with ACT Laboratories at the forefront of the movement to create safer cannabis through a more reliable cannabis testing landscape in the U.S. The Trust In Testing program is a transparent and collaborative process that will give consumers the confidence that they are purchasing high-quality products.”

“ACT Laboratories believes that consumers have the right to know what is in their cannabis products. This is an emerging problem: The risk of testing result inaccuracy is greater than ever for cannabis brands hoping to deliver safe and reliable products to their customers as allegations of testing fraud are rampant across the country,” said Michael Drozd, CEO of ACT Laboratories. “Poor quality testing data can adversely impact brand reputation, resulting in loss of business, hefty fines, legal action or, in some cases, licenses being revoked. And worst of all, it erodes customer confidence, has a negative financial impact, and presents a potential consumer safety risk.”

Cannabis brands are increasingly being asked by investors and other stakeholders about the controls employed by the labs testing their products. The Trust In Testing program is designed to address these concerns by enabling partners to respond to these inquiries by providing evidence of the enhanced standards used by their labs, lowering the risk of business interruption due to state regulatory action and damaging lawsuits when using a low-quality testing partner.

SC and ACT Laboratories are the founding participating labs in the Trust In Testing Certification. Cannabis brands that want to demonstrate their commitment to quality and providing accurate and reliable data may use the Trust in Testing seal on products that have been tested by a Trust in Testing Certified Lab. Similar to the “Certified Organic” seal commonly seen in the produce aisle, the Trust in Testing seal provides a simple way for cannabis consumers to feel confident that the products they are purchasing and consuming have successfully passed all potency and contaminant testing requirements.

For more detailed information on specific criteria labs that are Trust-In-Testing Certified, or to receive your Trust In Testing Certification, visit: www.trustintesting.org

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About SC Laboratories

With more than 12 years of experience helping companies deliver safe products to the emerging marketplace, SC Labs is focused on establishing new testing standards and methodologies designed for speed, efficiency, and safety. SC Labs helps its clients navigate complex regulatory requirements while providing them unmatched scientific expertise and state-of-the-art resources. SC Labs also specializes in mitigating risk through its state-of-the-art compliance software, Chorus, to ensure cannabis businesses are up to date and compliant with the changing regulatory landscape. SC Labs is licensed and accredited in California, Oregon, Colorado, and Michigan with a growth strategy designed to serve quality cannabis and hemp brands across the nation and around the world. To learn more, visit SCLabs.com.

About ACT Laboratories

ACT Laboratories provides critical lab testing services for licensed cultivators and processors. ACT Laboratories is licensed and accredited in Illinois, Pennsylvania, Michigan, Ohio and New York with expansions into Massachusetts, New Jersey and Florida underway. ACT Laboratories is the nation’s largest testing network operating under a single private ownership structure, driving operational consistency and standardization across our footprint, and delivering a best-in-class, predictable supply chain partnership. ACT Laboratories is ISO/IEC 17025:2017 and has quality systems in place that go beyond that which is required in the Cannabis Industry, mirroring what’s seen in the pharmaceutical industry. ACT offers a suite of consultative solutions that span compliance testing, quality, formulation, and facility monitoring to optimize processes, manage risk, and drive speed to market. To learn more, visit ACTLaboratoriesinc.com

Media Contacts
Lisa Stemmer
lisa.stemmer@sclabs.com

Susan Campbell
susanc@actlaboratoriesinc.com

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Federal Bill Aims to Reduce Regulations for Hemp Farmers Producing Grain and Fiber

4/04/2023

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A bipartisan bill proposed in the U.S. Senate would reduce regulations for hemp farmers producing grain and fiber. The legislation, introduced last week by Sens. John Tester (D-MT) and Mike Braun (R-IN), would end background checks for farmers who are only growing the crop for fiber and grain and end mandatory sampling and testing of crops grown only for fiber or grain.

“It’s important that we set American farmers up for success by cutting burdensome regulations and red tape. This legislation will expand opportunities for industrial hemp producers in Indiana and across the country and allow them to tap into one of the fastest growing agricultural markets.” — Braun in a press release

In a statement, National Hemp Association Executive Director Erica Stark said that the current federal regulatory framework “revolves around the perceived risk of cannabinoids,” which “makes it untenable for hemp to be placed in a rotation with other common commodity crops like corn, soy, or wheat.”

Tester, in a statement, said “It’s time we cut red tape, and make it easier for industrial hemp farmers to get their product to market.”

“Montana farmers don’t need government bureaucrats putting unnecessary burdens on their operations,” he said.

Chad Rosen, CEO and founder of Victory Hemp Foods, noted that in Kentucky in the years that followed the federal reforms, the hemp industry “started strong” but after a couple of years his company “found it increasingly difficult to attract acreage from the farms best equipped to grow our grain varieties.”

“Not because of agronomic challenges, but because growing hemp seed requires clearing excessive regulatory hurdles. We have all the resources we need to grow this crop in proximity to our processing center in Kentucky, but frustratingly can’t attract the farmers because the hassle and risk do not justify the return for the farmer,” he said in a statement. “Hemp seed will never be more than a niche crop as long as we treat it so differently from the major row crops. There is no risk to consumers, farmers, or their neighbors in exempting hemp for grain and fiber from these onerous regulations. For farmers that are growing hemp grain, providing a regulatory exemption will help us bring our supply chain back home.”

The measure is currently in the Senate Committee on Agriculture, Nutrition, and Forestry.

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Katrina Skinner: How Compliance Software Helps Streamline and Protect Cannabis Brands

4/04/2023

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Between cultivation, the manufacturing of edibles and other products, and retail responsibilities, cannabis companies from all corners of the industry have a lot on their plate — and the hyper-regulated conditions that cannabis operators wade through each day create even more complications and potential pitfalls. Luckily, companies like Simplifya, the automated operational compliance platform, can help safeguard cannabis entrepreneurs from regulatory penalties.

In this Q&A, Simplifya’s General Counsel and Chief Banking Officer Katrina Skinner discusses the role of compliance technology in the industry and describes how automating compliance can both boost efficiency and reduce costs. This interview also covers how Simplifya stays on top of shifting regulations, how the company onboards services for a new market as it opens up, and more!

Scroll down for the full interview:

Ganjapreneur: What is Simplifya’s role in the cannabis industry?

Katrina Skinner: Simplifya is the country’s leading automated operational compliance platform. Our products can be used as critical components of a comprehensive risk-based compliance plan to automate tasks, create accountability, communicate successes and challenges, and provide the reporting management needs to identify and mitigate risks.

As Chief Banking Officer and General Counsel for Simplifya, what do your daily duties look like?

Much of my day is spent evaluating opportunities and helping implement strategies that help drive the adoption of Simplifya’s products and services. In doing so, I am privileged to work across all departments as well as work with outside third-parties that are close strategic partners. I also spend time educating others about effective cannabis compliance programs for businesses providing financial services.

How has compliance-oriented technology helped to evolve the cannabis space?

Compliance-oriented technology has modernized the cannabis industry by bringing much-needed tools that traditional highly-regulated industries have had for years, including financial services. Automated compliance platforms create efficiencies and cost savings by helping to protect cannabis licenses and by creating a digital paper trail that proves such efforts have been undertaken, making compliance easier for those who are tasked with implementing programs. By using these tools, rather than having to divert a ton of time, energy and money to handle compliance tasks that can be automated, businesses have the ability to redirect staffing to areas that support and facilitate expansion. Compliance becomes drastically easier, even in a difficult regulatory environment that lacks standardized regulations.

As a new cannabis market matures, does the demand for compliance services fluctuate?

I think it’s a common misconception that demand for compliance services decreases when a market matures. While regulations and compliance tasks may become more familiar and easier for licensed operators to understand and adhere to over time, regulators are also becoming more adept at enforcement and coming to understand the industry, its players, dynamics and intricacies inside and out. New regulations are issued each month and current regulations are constantly changing. The fact of the matter is: the cannabis industry is incredibly complex, and the complexities and nuances will continue to grow; thus comprehensive compliance programs are essential. The demand for specific compliance services may shift, but the overall need for compliance services will always be there.

Another misconception is that once federal prohibition ends, compliance services will become obsolete. In reality, rules will just get more complicated and layered and enforcement will ramp up when the federal government can get involved. Like alcohol laws, local jurisdictions would still be able to ban cannabis and impose their own restrictions. Federal laws will just be layered on top of state and local ordinances.

How does customer feedback influence Simplifya’s services?

Unsurprisingly, Simplifya is like any other service provider – we want operators and ancillary companies throughout the cannabis ecosystem to recognize our value-add and to be motivated to buy our products and services. Simplifya is committed to obtaining and reviewing client feedback, as well as constantly working to improve our products by implementing suggestions made by our current customers. Simplifya will even make significant changes to its content and product offerings if clients ask; however, of course we must consider the return on investment before doing so, as well as gauging popular consensus among clients.

What people don’t always appreciate is that our Regulatory Affairs team is constantly reviewing current regulations, proposed changes to regulations, and new regulations coming into every market in real time. The team goes through great pains to “simplify” the content to make the rules understandable for all compliance team members who use our products. Since the cannabis industry changes all the time, so does Simplifya’s content. We understand keeping abreast of the most current information is critical to ensuring compliance, and we want to be the tool compliance departments rely upon. Ultimately, Simplifya brilliantly combines automation with human insights, and to the extent we can refine our products to meet demand, we will do so.

Could you describe the process of expanding Simplifya’s services to a new state, market, or industry?

Simplifya’s Regulatory Affairs and Sales teams constantly monitor developments in new states. Using a proprietary process, our policy experts streamline final rules and regulations into the Simplifya format that the developers use to create content. Then our teams review the content, and then it goes through a legal and quality assurance review before being released. After new content is released, Simplifya team members watch for bugs and fix any that may arise. Once we wrap up putting out our core products in a state, the Reg Affairs team moves to the next state where there is sufficient demand and/or a request from a current customer, to repeat the process. It takes roughly 30 days to bring a new state online. So far our core products, which include SOPs, digital document storage, self auditing and license tracking are in 28 states and this number is growing.

What are you most excited about for the future of Simplifya and the cannabis industry in general?

The adoption of more automated compliance solutions is going to be exciting for Simplifya because we are committed to supporting the industry with relevant and useful technology, so as the markets grow, so too will Simplifya. And as for the cannabis industry in general, I am most excited about watching how the industry will continue to navigate tough market conditions so it evolves and becomes stronger and more mainstream with each passing year.

What’s your advice to entrepreneurs as they enter and/or navigate the cannabis space?

Prepare yourself for constant change, embrace learning opportunities, and don’t be afraid to ask for help. The learning curve is steep, so why not make the climb easier with advisors, mentors, and colleagues?

Thank you, Katrina, for sharing with our audience! Readers can visit Simplifya.com to learn more.

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Missouri House Approves Measure Requiring State to Conduct Psilocybin Mental Health Studies

4/04/2023

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The Missouri House last week approved a measure that would require the state to conduct studies on psilocybin to treat depression, substance abuse, post-traumatic stress disorder, or use as part of end-of-life care, the Missouri Independent reports.

This bill requires the state Department of Health and Senior Services (DHSS) to provide more than $2 million in grants for the research, subject to lawmakers approving the appropriation. The state would collaborate on the study with a Missouri university hospital or medical center operated by the U.S. Department of Veterans Affairs in Missouri.

In June, Miriam E. Delphin-Rittmon, assistant secretary for mental health and substance use, wrote to U.S. Rep. Madeleine Dean (D-PA) that federal Food and Drug Administration approval of psilocybin to treat depression was likely within the next two years, the report says. However, state Rep. Tony Lovasco (R), who has previously sponsored similar legislation, told the Independent that two years is a long time to wait.

“The folks that are coming back from war, that are in desperate need of care, a lot of them aren’t going to be around in three years. We’ve got, what 20-something veterans per day committing suicide? That’s a tremendous amount of loss while we wait for the government to do some paperwork.” — Lovasco to the Independent

Suicide rates in Missouri are about 25% higher than the national average, the report says, and research suggests psychedelic therapies, such as psilocybin, can be efficacious in treating conditions that may cause individuals to consider committing suicide.

State Rep. Aaron McMullen (R), a combat veteran who served in Afghanistan, said during the debate that “Substance abuse and suicide are escalating in the veterans community.”

“While psilocybin is not a panacea for every issue,” he said, “it represents a first true scientifically-validated hope that we have to address this crisis.”

The legislation still requires approval from the Senate and governor before becoming law.

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Washington State Psychedelic Therapies Bill Pared Down to Pilot Program

4/04/2023

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A bill to allow psychedelic therapies in Washington state has stalled, but lawmakers are considering legislation to allow military veterans and first responders to access a pilot program for the treatment, the Seattle Times reports. The pilot program bill has passed the Senate and last week was approved by the House Committee on Health Care and Wellness.

Under the measure, pilot program participants would have to be 21 and older, and have experienced substance use disorder, depression or anxiety, or post-traumatic stress disorder. They would also have to pass an assessment before being accepted into the program, the report says.

The measure would also create three separate collaborations between state agencies: one would be a Psilocybin Advisory Board through the Department of Health that would advise and share recommendations with the state’s Liquor and Cannabis Board in addition to the state Department of Agriculture. A separate work group among those agencies would develop a regulatory framework for psychedelic therapies.

In an email to state Sen. Jesse Salomon (D), the original bill’s sponsor, in early February, Samantha Pskowski, the governor’s policy adviser for public health, said the bill creating a psychedelic therapy program “would create a system for regulation and use of psilocybin that is not supported by the available scientific and medical evidence.” State officials contend that psychedelic therapy research is limited, and the original bill puts the “health and safety of Washingtonians at risk.”

During testimony on the proposal, Dr. Anthony Back, a University of Washington researcher who is working on a trial about psychedelic-assisted therapies’ ability to support health care workers with burnout, said he thinks “waiting for three years or waiting for more years, is not doing justice to the mental health crisis” that he is “seeing now.”

If the bill is approved, the pilot program would need to be implemented no later than January 1, 2025.

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Report: Cannabis Removed from NBA Drug Testing Protocols

4/03/2023

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Cannabis has been removed from the National Basketball Association’s (NBA) drug testing program under a tentative Collective Bargaining Agreement (CBA), according to a report from The Athletic. The CBA still needs to be ratified by players and team governors before being finalized.

Cannabis testing for NBA players has been suspended for the past three seasons but the proposed CBA permanently removes cannabis from the league’s testing protocols.

The news was first reported by The Athletic reporter Shams Charania on April 1.

“Sources: NBA players will no longer be prohibited for marijuana under the new seven-year Collective Bargaining Agreement. It’s been removed from the anti-drug testing program, a process that began during 2019-20 season.” — Charania via Twitter

Of the 30 NBA teams, 15 are based in locals where cannabis is legal for adult use – including the Canada-based Toronto Raptors and the Washington D.C-based Wizards. The remaining teams are based in states that have legalized cannabis for medical use.

In a statement posted to Twitter, the NBA Players Association – the players’ union – announced they had reached a CBA deal on April 1 but that “Specific details will be made available once a term sheet is finalized.”

Last March, Major League Baseball (MLB) announced that players are allowed to use cannabis during off-hours but that they could not show up to team workouts or events under the influence and they could not invest in cannabis companies. While the National Hockey League (NHL) does test for cannabis, there is no punishment for a positive test. Once the NBA’s CBA is finalized, the National Football League (NFL) will be the only major U.S. sports league to test and penalize players for cannabis use.

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Kentucky Gov. Signs Medical Cannabis Bill Into Law

4/03/2023

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Kentucky Gov. Andy Beshear (D) last week signed the medical cannabis bill into law just one day after lawmakers gave it final legislative approval. Beshear signed the measure along with a bill to legalize sports betting in the state.

“I have been pushing for medical cannabis and sports betting for years. Today, I signed these two bills into law. Team Kentucky delivers and we get results. Congrats, Kentucky.” — Beshear via Twitter

Beshear last year signed an executive order to legalize the possession of cannabis by some individuals suffering from severe medical conditions. Those reforms took effect on January 1, allowing individuals with a medical provider’s statement to possess up to eight ounces of cannabis for medical purposes if purchased legally in another state.

During the bill’s signing on Friday, Beshear described that system as “imperfect.”

“… We needed legislative action, and last night, the General Assembly delivered,” he said, according to a WLKY report.

The measure does not allow patients to access smokable cannabis products but permits edibles and concentrates. The bill’s qualifying conditions for the medical cannabis program include: any type or form of cancer, regardless of the stage; chronic, severe, intractable, or debilitating pain; epilepsy or any other intractable seizure disorder; multiple sclerosis, muscle spasms, or spasticity; chronic nausea or cyclical vomiting syndrome that has proven resistant to other conventional medical treatments; and post-traumatic stress disorder. The measure allows the Kentucky Center for Cannabis Research to add medical conditions to the list.

Under the law, medical cannabis is set to be available in Kentucky on January 1, 2025.

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Washington D.C. Cannabis ‘Gifting’ Businesses May Obtain Medical Cannabis License

4/03/2023

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Washington, D.C. businesses with a history of “gifting” cannabis will be allowed to obtain a medical cannabis license under a law that took effect in the District late last month, WTOP News reports. There are currently over 100 shops in D.C. that sell items at inflated prices and include cannabis equal to the purchase price, the report says.

The law also expands the types of licenses that retailers may apply for, including internet retailer and a courier license for cannabis deliveries, as well as “safe-use facility endorsement” to allow events, such as tasting or sampling events, cannabis-based cooking classes, and summer garden events that allow sales in private outdoor spaces.

The law sets aside at least 50% of the new cannabis licenses for social equity applicants. Retailers have 90 days to apply for a license and civil enforcement of the new licensing program won’t begin for 315 days, the report says.

In August, the city council approved a law to allow DC residents 21-and-older to self-certify for medical cannabis, providing them immediate access to medical cannabis. Adult-use cannabis is legal in D.C.; however, adult-use sales have been blocked by a rider in the congressional budget prohibiting local officials from spending funds on setting up the industry. D.C.’s budget is set forth by Congress.

The bill also changed the name of the Alcoholic Beverage Regulation Administration to the Alcoholic Beverage and Cannabis Administration (ABCA).

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Kentucky Passes Medical Cannabis Legalization Bill

3/31/2023

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Kentucky lawmakers on Thursday passed a bill to legalize medical cannabis in the state, moving the legislation to Democratic Gov. Andy Beshear (D), Spectrum News 1 reports. Beshear, on Twitter, said he plans to “proudly” sign the legislation today. The measure does not include smokable forms of cannabis but would allow patients enrolled in the program to access edible and concentrate products.

Last year Beshear signed an executive order to legalize the possession of cannabis by some individuals suffering from severe medical conditions. Those reforms took effect on January 1, allowing individuals with a medical provider’s statement to possess up to eight ounces of cannabis for medical purposes if purchased legally in another state.

State Rep. Jason Nemes (R), who sponsored a medical cannabis bill last year that did not get a vote in the Senate, told Spectrum News that medical cannabis products allowed under the law must be cultivated by licensed Kentucky growers, tested by licensed laboratories in the state, and that the legislation contains THC caps.

“This is not a wink, wink, nod, nod bill. We want those who are running, or in this program, to be held accountable when they misbehave. And if they misbehave, they need to go to prison, a Kentucky prison.” — Nemes to Spectrum News

On Twitter, Beshear noted that medical cannabis legalization is “something the majority of Kentuckians support” and said he was “thankful this progress has been made.”

The measure passed the Senate 66-33. Once signed into law by the governor, the bill will take effect Jan. 1, 2025.

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Montana Lawmakers Table Bill to Eliminate Adult-Use Cannabis Sales

3/31/2023

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A Montana Senate committee on Thursday voted to table a controversial bill that aimed to eliminate adult-use cannabis sales in the state, the Montana Free Press reports. The measure also included a provision to raise the tax on medical cannabis products from 4% to 20%.

The Senate Business, Labor and Economic Affairs Committee voted 6-4 to table the bill with Senate President Jason Ellsworth, Committee Chair Jason Small, and Sen. Walt Sales – all Republicans – joining all three Democratic members to oppose the bill. The committee ultimately tabled the bill unanimously.

Cannabis legalization was approved by voters 57% to 43% in 2020. During the panel debate, Democratic state Sen. Willis Curdy said he was concerned and “really nervous about undoing the people’s will.”

State Sen. Keith Regier (R), the bill’s sponsor, argued that “there have been several examples of the will of the voters being reversed” but two of the three examples he cited were initiatives that had been turned over by courts, not lawmakers, the report says.

According to the bill text, the measure intends to “reduce the demand for marijuana sales” in Montana. Adult-use cannabis sales in the state have generated $54 million in tax revenues since sales commenced in January 2022. Less than one-tenth of that revenue came from medical cannabis taxes, while adult-use sales are taxed at a 20% rate by the state and some counties add an additional 3% local tax.

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South Dakota Medical Cannabis Company Sues Health Department Over Alleged Overreach

3/31/2023

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A South Dakota medical cannabis company is suing the state Department of Health (DOH) alleging overreach, attempts to enforce unpromulgated rules, and the improper issuance of violations which has led to damages of over $1 million, KELO reports. The case by 605 Cannabis dates back to an inspection of their facility in January which the company claims was carried out improperly and conducted while the facility was partially closed due to a blizzard.

In the complaint, 605 claims that DOH inspections are required under law to occur during normal business hours and that the health department’s inspection occurred while 605 was operating with limited staff, “not fully operational, not open during its normal business hours, and key staff members were not present.”

605 claims that during the inspection, samples of cannabis and products were taken and the DOH later issued a report containing 19 alleged violations. On February 8, the health department issued an emergency order, identifying nine serious violations from the inspection, and suspending 605’s manufacturing and cultivation licenses, the report says.

In the complaint, 605 outlines the nine DOH violations and contends that the agency erred in its evaluation and subsequent enforcement action and that minor violations, such as a camera blind spot, have been remediated. The company indicated it has attempted to reach a settlement with the DOH but has been unsuccessful.

605 claims a loss in revenue of $1.3 million due to the suspension of its licenses and that its rights have been violated as a result of the DOH misapplying and/or circumventing proper rulemaking procedures.

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Montana Bill Aims to Eliminate Adult-Use Cannabis Sales

3/30/2023

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A bill proposed in Montana would eliminate adult-use cannabis dispensaries in the state and raise the tax on medical cannabis from 4% to 20%, the Montana Free Press reports. According to the bill text, the measure, sponsored by state Sen. Keith Regier (R), intends to “reduce the demand for marijuana sales” in Montana.

The measure, which carries no co-sponsors, is currently in the chamber’s Business, Labor, and Economic Affairs Committee.

Adult-use cannabis sales in Montana have generated $54 million in tax revenues since sales commenced in January 2022, the report says. Less than one-tenth of that revenue came from medical cannabis taxes, while adult-use sales are taxed at a 20% rate by the state and some counties add an additional 3% local tax.

Regier’s legislation would also cap the THC potency for cannabis flower sold in the state’s medical cannabis program at 10%; under current state law, that limit is 35%. The measure would also halve the amount of THC allowed in an edible product, from 10 milligrams to 5 milligrams, and would prohibit concentrates from containing more than 10% THC.

Zach Block, the owner of Montana Canna, told the Free Press that those THC limits on medical cannabis products “would take our collection of effective products and diminish them into something unrecognizable and not necessarily sufficient to consumers and patients.”

He added that Regier’s bill would render the state’s adult-use cannabis program “worthless” for operators and consumers.

“You’d be delivering a subpar product to a small group of people,” he told the Free Press, “and you’re ignoring the majority of the worthy demographic.”

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New York Judge Narrows Scope of Dispensary Licensing Injunction

3/30/2023

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A New York Appeals Court judge on Tuesday narrowed the preliminary injunction on the state’s conditional adult-use retail dispensary (CAURD) plan to only include the state’s Finger Lakes region. The lawsuit, by Michigan-based Variscite NY One, had affected 63 of the 150 licenses set to be awarded to social equity applicants and prohibited licenses from being granted in the region along with Brooklyn, Central New York, the Mid-Hudson Area, and Western New York.

The decision by Judge Gary L. Sharpe will allow the state to move forward with issuing 38 licenses in Brooklyn, 14 in the Central region, 34 in the Mid-Hudson region, and 22 in the Western region. The 18 licenses in the Finger Lakes region will remain in limbo.

The decision does not indicate why the judge determined to narrow the scope of the original circuit court injunction.

In the case, Variscite argues that requirements that applicants must have a cannabis-related conviction under New York state law and significant ties to the state violate constitutional protections of interstate commerce. Those rules exclude people who had been arrested on cannabis-related charges in New York, but not convicted, and those who had only federal or out-of-state convictions. The regulations also require that applicants be headquartered in the state.

Variscite did not qualify for one of the first licenses, according to the initial complaint, because the company is based in Michigan. Varacite’s majority owner, Kenneth Gay, was convicted of a cannabis offense in Michigan. Despite the state’s rules, Varacite applied anyway, listing the five regions affected by the original injunction as preferred locations on its application.

Earlier this month, officials doubled the number of available cannabis licenses to 300. Tremaine Wright, chair of the Cannabis Control Board, said the license expansion will allow more entrepreneurs to “participate in the first wave of this industry, allowing them to capitalize on the growing demand for cannabis products.”

New York has so far been slow to award licenses which has led to a proliferation of unlicensed shops selling cannabis throughout the state. Gov. Kathy Hochul (D) last week proposed legislation to crack down on illegal operators, including imposing $10,000 fines per day of unlawful operations.

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Virginia Gov. Proposes CBD Carveout for Crackdown on Hemp-Based THC Products

3/30/2023

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Virginia Gov. Glenn Youngkin (R) is proposing a CBD carveout to a proposed state law that would enact strict regulations on hemp-derived THC products, the Virginia Mercury reports. Under the governor’s plan, hemp products that contain a 25:1 ratio of CBD to THC would not be affected by the broader hemp industry reforms being considered by lawmakers.

Youngkin spokeswoman Macaulay Porter told the Mercury on Tuesday that the amendment continues the governor’s “efforts to crack down on dangerous THC intoxicants including synthetic products such as delta-8.”

The bill includes the original measure’s fines of $10,000 per day for businesses selling unlawful or mislabeled products and the $1,000 registration fee for businesses that want to sell edible or smokable hemp products allowed under the law. The bill would also limit THC concentrations to 2 milligrams per package.

House Speaker Todd Gilbert (R) told the Mercury that the proposed changes follow “feedback from parents whose children have experienced positive benefits from CBD products.”

“…The substitute also includes a narrowly tailored exemption clarifying that the legislation will not outlaw those therapeutic products. Gov. Youngkin’s substitute takes into account these critically necessary products while going even further to clear store shelves of illegal products responsible for sending children to the hospital.” — Gilbert to the Mercury

Youngkin’s proposal would also get rid of a provision in the original bill requiring that bittering agents are added to hemp-derived topical products that include CBD. The bill still requires those products to contain a warning label stating that they are “not intended for human consumption.”

The General Assembly is expected to take up Youngkin’s proposed amendments to the measure next month.

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