New Jersey Poll Finds Majority Support for Putting Cannabis Taxes Into Education

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A majority of New Jersians would like cannabis-derived tax revenues to be used on education, according to a Rutgers-Eagleton Poll outlined by ROI NJ. The survey found 23% of respondents preferred cannabis taxes were spent on education; 21% wanted the funds used for public and community health initiatives, including drug treatment centers; 15% said it would be spent on affordable housing development; 13% preferred the revenues were used for transportation and infrastructure projects; and 11% wanted the money used for court and prisons.

Just 4% of respondents supported using the revenue for campaigns on the dangers of substance use.

Nathan Link, assistant professor and graduate director in the Department of Sociology, Anthropology and Criminal Justice at Rutgers-Camden, one of the poll’s partner organizations, described the results as “a big deal and a needed conversation.”

“What sets this legislation apart from that of the other states that have legalized and decriminalized cannabis are the critical benefits for social and racial justice that arise from implementing a permanent funding structure that potentially targets schools, health and the well-being of people living in New Jersey’s most disadvantaged communities.” — Link via ROI NJ

Democrats and independents – 25% each – were more likely than Republicans (16%) to prefer education funding as the top priority. For Republicans, the top priority for cannabis tax revenue should be funding police, courts, and prisons (21%). Black residents (38%) polled were more likely than residents of other races and ethnicities to believe the state should primarily invest the revenue in affordable housing development.

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Kansas Bill Would Free Cannabis Prisoners and Expunge Records

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A bill proposed in Kansas would allow individuals to have cannabis-related crimes expunged from their records and release anyone serving probation, parole, prison or jail sentences, the Kansas Reflector reports. The measure is sponsored by House Minority Leader Vic Miller (D) and includes 24 co-sponsors.  

“It doesn’t legalize it per se, but it eliminates the serving a sentence punishment. … This is sort of a backdoor way of relieving people of the penalty. And in and of itself, it would save in my mind, probably tens of millions of dollars related to those prosecutions in those incarcerations.” — Miller to the Reflector 

Kansas is one of four states where cannabis remains outlawed for any purpose. If approved, the measure would take effect July 1. The state is bordered by Missouri and Colorado, which both allow adult-use cannabis access, and Oklahoma which allows medical cannabis in one of the U.S.’s most permissive programs.  

Kansas House lawmakers approved a medical cannabis bill in 2021 but the measure died in a Senate committee.  

The cannabis penalty reform bill has been sent to the House Corrections and Juvenile Justice Committee. Committee Chairman Rep. Stephen Owens (R) told the Recorder that he needed to review the bill before making any comments.   

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Canopy Growth Announces Layoffs and Facility Closure

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Canadian cannabis company Canopy Growth on Thursday announced staff reductions of about 60%, including 800 positions, of which 40% were cut immediately. Canopy said it also plans to shut down its Hershey Drive facility in Smith Falls, Ontario. 

The moves are part of a cost reduction program that will save the firm between $140 million to $160 million over the next year.   

In a press release, CEO Dave Klein said Canopy was transitioning to an “asset-light model and significantly reducing the overall size” of the organization. 

“Canopy must reach profitability to achieve our ambition of long-term North American cannabis market leadership. … These changes are difficult but necessary to drive our business to profitability and growth.” — Klein in a statement 

The company said the transition to the asset-light model includes third-party sourcing for cannabis beverages, edibles, vapes, and extracts. 

In a statement, CFO Judy Hong described the plan as a “right-sizing” of its Canadian business which is “expected to significantly reduce” Canopy’s cash costs.  

“Canopy is firmly on the path to deliver at least quarterly breakeven adjusted EBITDA in our Canadian cannabis business in fiscal 2024,” she said, “even at current revenue run-rate.”

Canopy indicated that the company’s net revenues declined 28% in the third quarter of the year versus the third quarter of last year. The decrease, the company said, is “primarily attributable” to increased competition in Canada’s adult-use cannabis market, the divestiture of C3 Cannabinoid Compound Company GmbH, a decline in its U.S. CBD business, and “softer performance” from Storz & Bickel and This Works.

“When adjusting for both the impact of the divestiture of C3 and our Canadian retail business, revenues for the period decreased 23% in Q3 FY2023 versus Q3 FY2022,” Canopy said.

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Wu-Tang’s Raekwon Seeking to Rehab Historic New Jersey Building for Consumption Lounge

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The cannabis company partially owned by Wu-Tang Clan member Raekwon is seeking to open an adult-use cannabis lounge in Newark, New Jersey, Jersey Digs reports. The rapper’s plans include rehabbing a historical building in the city – the former home of engineering firm A.R. Meeker & Co and Stoutenburgh & Co. Newark Clothiers.

The plans for the Newark Hashstoria lounge would give the building a more unified appearance. Rachael Grochowski, principal of RHG Architecture + Design, who is working on the project, noted that there would be “community art in the window that will be changeable.”

The building dates back to 1839 and is in Newark’s Four Corners Historic District and has undergone several modernizations throughout the years.

The application has been unanimously approved by the Landmarks Commission.

New Jersey only recently announced it would allow social cannabis consumption and the state is accepting public comments until March 18, after which the rules will be finalized and adopted. Once the rules are filed and published in the New Jersey Register, the commission will accept consumption area applications for dispensaries already in operation or that have their permits.

Hashstoria currently has locations in Astoria, Gladstone, and Springfield, Oregon. The New Jersey location is set to open in March.

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CAKE Arrives in Arizona, Confirms “She Does Hit Different”

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Phoenix, AZ — Highly sought-after California cannabis brand CAKE She Hits Different has announced its partnership with Atlas Street Ventures to bring CAKE to the Arizona recreational market, the brand’s third national market.

Many have heard the name, but you may not know their background. Here’s the brief: CAKE’s founders have over three decades of combined experience in the industry including award-winning cultivation, boutique extraction methods, engaging brand design, and an acute pulse on the cannabis market. Their ability to rapidly evolve and innovate beyond the status-quo has established CAKE as a leader in the cannabis industry.

“We are so excited to launch CAKE in Arizona with our partners at Atlas Street Ventures. The ASV team shares our passion and commitment to delivering the CAKE quality products and unforgettable experiences that we are known for. Their genuine love for the CAKE brand and culture makes them the perfect partner to roll out CAKE in one of the strongest cannabis markets in the country. Expect to see big things from us!” Chloe, Co-Founder of CAKE She Hits Different.

CAKE’s signature line of Cryo-Cured Resin Pods are now featured in over 35 retailers across the state and set to be in over 100 by summer. As a lifestyle brand, the CAKE experience goes far beyond the dispensary and Arizona can expect the company to deliver unique events centered around music, cannabis, and fashion that bring together the community.

“Working with CAKE ‘She Hits Different’ is a dream come true. The CAKE team is obsessed with curating the ultimate customer experience and they never stop innovating. We are just getting started in Arizona but early retail partner sell through is greatly exceeding expectations. The excitement around the CAKE launch in Arizona is like nothing we have ever seen.” — Kent Haehl, President of Atlas Street Ventures AZ.

To celebrate their Arizona launch in proper CAKE style, they will be co-presenting sponsor of “Stoner Bowl 2023” on Sunday, February 12th. Stoner Bowl is a first of its kind industry-only private consumption event held on Super Bowl Sunday, and produced by craft cannabis company Sonoran Roots.

CAKE CryoCured Resin Pods are now available at premium retailers across Arizona.

Available Now:
-All Greens
-Debbie’s (All Locations)
-Saints
-Prime Leaf (All Locations)
-Ponderosa
-AZ Natural Concepts
-Phoenix Relief Center

Available February:
-Zenleaf (All Locations)
-Herbal Wellness Center (All Locations)
-Local Joint
-Arizona Cannabis Society
-The MINT (All Locations)

For more information about CAKE She Hits Different please visit the company’s website at shehitsdifferent.com.

About CAKE She Hits Different
Founded in 2019, CAKE is a multi-state woman and BIPOC-owned lifestyle cannabis brand offering innovative cannabis products, street wear apparel, and exclusive events. From their cryo-cured resin vapes to small batch indoor flower, CAKE is dedicated to offering the highest quality and most innovative cannabis products in the industry.

About Atlas Street Ventures
Atlas Street Ventures is a licensed cannabis product manufacturer, distributor, and innovator that brings best in class cannabis brands to market directly or through co-packing partnerships.

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Maker of RAW Rolling Papers Ordered to Cease Marketing Claims

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Rolling paper company Republic Brands has won a permanent injunction in a federal lawsuit against HBI International, the maker of RAW® Organic Hemp rolling papers, which requires HBI to cease promoting and selling certain products and stop making certain promotional statements. The plaintiff, Republic Brands, is the rolling paper company behind OCB®, JOB®, and other rolling paper brands.

Following a jury verdict last month that HBI International engaged in unfair business practices and violated the Illinois Uniform Deceptive Trade Practices Act, the rolling paper company has been barred from suggesting that its products are made by artisanal craftsmen in Alcoy, Spain — the birthplace of the modern rolling paper — and that it contributes its proceeds to a charitable entity or foundation known as the “RAW Foundation,” which the court found did not actually exist.

In total, the United States District Court for the Northern District of Illinois on January 31, 2023, permanently enjoined HBI International from communicating or otherwise implying — whether via marketing material or statements by personnel — any of the following:

  • That HBI and/or RAW® contributes its funds or proceeds to a charitable entity/foundation dubbed the “RAW Foundation”
  • That RAW® Organic Hemp rolling papers are “unrefined”
  • That RAW® Organic Hemp rolling paper adhesives are made from natural hemp gum
  • That RAW® Organic Hemp rolling papers are the world’s first or only organic (or organic hemp) rolling papers
  • That RAW® Organic Hemp rolling papers are made in Alcoy, Spain
  • That HBI International shall not include a packaging “stamp” using the word Alcoy or referring to Alcoy
  • That RAW® Organic Hemp rolling papers utilize wind power
  • That RAW® Organic Hemp rolling papers are made from the center of hemp stalks
  • That HBI or its founder Joshua Kesselmen invented rolling paper pre-rolled cones
  • That OCB® Organic Hemp papers are knock-offs, “RAWnabees,” copies, or fake versions of RAW® rolling papers

The court ordered HBI to stop promoting, selling, or distributing products in any way that would violate the enjoinment. Additionally, after May 31, 2023, HBI is foribbden from promoting, selling, or otherwise distributing rolling paper products under any of its other brands (which includes Elements®, Juicy Jays®, and others) in packaging that includes an Alcoy stamp.

HBI International did not immediately respond to a request for comment.

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Illinois to Conduct Disparity Study for Adult-Use Cannabis Industry

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The Illinois Cannabis Regulation Oversight Office (CROO) on Tuesday announced the commissioning of a Disparity and Availability Study for adult-use cannabis licenses as required by the state’s Cannabis Regulation and Tax Act. 

The study will collect and analyze data and will report on whether discrimination exists in the Illinois cannabis industry. The CROO said that if the study finds that discrimination exists, it will evaluate the impact of the discrimination on the state and its residents regarding entering and participating in the cannabis industry. The study will include recommendations for reducing or eliminating any identified barriers to entry.   

In a press release, Acting Cannabis Regulation Oversight Officer Erin Johnson called the study “a vital assessment of the state’s cannabis social equity licensing system.”  

Last year, the state published a formal request for proposals to find a vendor to conduct a Disparity Study of the cannabis licensing system. The request resulted in a contract with the Nerevu Group, which is a 100% minority- and women-owned group of contractors and subcontractors from Peoria, Decatur, Springfield, Chicago, and additional locations across the country. 

Nerevu Group Founder and President Reuben Cummings described the work as “essential in identifying potential disparities and suitable remedies.”  

The final report to the governor is due in one year and updates will be posted to the CROO website. 

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New Jersey’s First Black Woman-Owned Dispensary Opens This Week

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New Jersey’s first Black woman-owned retail cannabis dispensary opens this week in Waterford. The dispensary, Holistic Solutions, is owned by Suzan Nickelson, who was the first Black woman to majority own and operate a medical cannabis dispensary in the state. 

Nickelson is also the first woman to own a cannabis license in the Garden State.   

“Like the women who raised me, I believe cannabis is a plant of reverence and spirituality that has been given to people to heal – however intentional stigmatization led to what we went through in the War on Drugs that disproportionately hurt entire communities of Black and brown people. This is what fueled me to work relentlessly to open the doors of Holistic Solutions. The women in my family passed down generational knowledge of working with various herbs for healing and spirituality to me, and I look forward to using that knowledge to run my own cannabis business so others can understand just how powerful this plant can be in a pursuit of wellness and healing.” — Nickelson in a press release 

Nickelson also runs Ital Daughters LLC, a cannabis and hemp consulting company that specializes in assisting minorities, women, and veterans in addition to local municipalities and stakeholders in understanding compliance and regulatory aspects of the industry. 

Holistic Solutions is partnered with Eastbound Collective, which serves as a minority partner, and was founded by Patrik Jonsson last April.  

“I am delighted to support Holistic Solutions on this important project. While there is now a large number of conditional cannabis licenses in NJ, there is a very limited number of operators with the funding, site control, and experience to capitalize on having a license,” Jonsson said in a statement. “Our team does. This does not only ensure that we can follow through with our commitments, but we can open quickly and provide tax revenue to the Township in 2023.” 

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Former NFL Star Calvin Johnson’s Cannabis Company Launches Nano-Cannabinoid Product Line

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Primitiv, the cannabis company owned by former Detroit Lions teammates Calvin Johnson Jr. and Rob Sims, last week launched their Primitiv Performance line which uses a proprietary blend of electrolytes, vitamins, and water-mixable nano phytocannabinoids – including CBD, CBG, CBC, and CBN – which aims to aid in rehydration, recovery, and support the immune system.  

The company describes the product as “designed for people living an athletic lifestyle to use before, during and after a workout.” The product line includes 25-milligram nano-CBD stick packs which come in four flavors and a broad-spectrum transdermal topical cream. 

“I’ve long been an advocate of cannabis as a holistic way to help my body recover from the trauma it faced each day on the gridiron and knew there were many other ways to unleash the power of this plant into our daily lives. Primitiv Performance was designed to showcase these non-psychoactive phytocannabinoids by showcasing them in a way that is familiar to people already incorporating a rehydration drink mix or topical cream into their daily lives, all while further educating consumers about the power of this plant.” — Johnson in a press release 

Primitiv Performance was developed in collaboration with CYP, a company that focuses on innovating higher standards of cannabis consumption by developing the fastest-acting, most bioavailable, and predictable products for the cannabis and healthcare markets through the integration of its High-Performance Nano Emulsion technology.   

In a statement, James Barr, co-founder of CYP, said the nanotechnology used in the Primitiv Performance line “allows consumers to feel the active ingredients shortly after use because the cannabinoids are so small that they mostly bypass the intestinal system and enter directly into the bloodstream, therefore creating a more targeted, predictable, and bioavailable product.”    

The product line is currently available online via the Primitiv Performance website. 

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Five Marketing Mistakes Cannabis Companies Should Avoid

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Editor’s note: This guest editorial was contributed by Steve Knapp, the founder and CEO of SM Services.

A complex, technical, and attention-grabbing sector? That description applies to both cannabis and marketing. But many cannabis insiders aren’t equally versed on the ins and outs of effective marketing campaigns. Whether you run a B2B or B2C business, connecting effectively with customers requires a fair bit of know-how and understanding of the digital advertising landscape.

It’s easy to think a DIY approach to marketing your business will get customers in the door, but organic growth is easier said than done. Here are five common marketing mistakes and how you can avoid these pitfalls to get your brand in front of the right people.

1. When Marketers Wear Too Many Hats

Time and money aren’t always as plentiful as terpenes and cannabinoids in this industry. It can be tempting to overload your team with marketing tasks outside their expertise or capacity. Even if you can hire qualified marketing specialists, it’s easy to overextend those staff until they’re no longer nimble or effective.

Harnessing an effective omnichannel approach becomes difficult when marketers are distracted with too many responsibilities. Instead of piling on so many hats that your marketing team resembles a British wedding, go back to basics to ensure your strategy is clear and focused.

Establish a clear accountability map so each marketing team member knows exactly what they’re responsible for. Clear up communication roadblocks so that each stakeholder is both empowered and informed. Be honest about bandwidth. And don’t be afraid to rely on outside advertising experts and experienced strategists to establish up-to-date best practices or take over tasks beyond your team’s capacity.

2. Not Leveraging Website Traffic

Driving web traffic is a key goal of any digital marketing strategy. Your web presence can be invaluable to the success and longevity of your business. But you might be leaving crucial resources on the table if you don’t leverage all the data that comes with each visitor to your website.

Be sure to collect email addresses, phone numbers, names, product preferences, and more from all your digital visitors. Earned media platforms like Twitter, Facebook, Instagram, and LinkedIn might be the web equivalent of rental properties, but your email list is one of your business’s most valuable assets.

The more information you collect (within compliance regulations, of course), the better you can understand what makes your customers tick— and what appeal you hold for prospects. Use Google Analytics and other free developer tools to learn more about traffic behavior like top landing pages, button engagement, daily page visits and other trends.

3. Not Using Modern Technology for Programmatic Ads

Speaking of data-driven marketing tactics, programmatic advertising — which automates your media buying process — has grown by leaps and bounds in step with tech advances. While geofencing is a great way to serve ads and collect information about smartphone users in a specific area, it’s a mistake to treat that blanket approach as if it were a real strategy.

It’s best to only serve ads to active cannabis or CBD shoppers — this ensures your ads reach the most relevant audience possible. Retargeting — that is, serving ads to someone who has already visited your site or is otherwise flagged as a lead — ensures your programmatic/geo-targeting efforts are successful. Retargeted ads do this by increasing the number of customer touchpoints for relevant audiences and keeping your brand top of mind as they make purchasing decisions.

That’s not the only way to target your programmatic ads. Spending your advertising dollars on placements where your core audience is spending their free time is also smart. If you can catch your audience at leisure on websites and gaming apps when they are in a relaxed, positive, and comfortable state of mind, you increase the chances of not only positive associations but also impulse purchases.

4. Not Following Critical Cannabis and CBD Ad Regulations

One of the biggest mistakes cannabis operators can make is to think marketing compliance isn’t as important as OSHA regulations or childproof packaging. Different legal states have their own marketing or advertising regulations for cannabis and CBD, of course. But digital advertising is subject to extra scrutiny because it must be compliant with state regulations as well as the terms of service set by Google and other major search engines, as well as social media platforms.

Be sure your marketing team is deeply familiar with local guidelines on restricted verbiage and imagery, as well as required verbiage and regulations on ad placement. Don’t rest on your laurels, either — regulations can and do change over time, so it’s important to stay up to date. It’s important, too, to keep one eye on developments in the alcohol, tobacco, and Big Agriculture industries to see what kinds of regulations the federal government might impose when cannabis is eventually legalized.

5. Not Selecting a Workable e-Commerce & Merchant Processing Solution

It might seem like federally legal CBD is the darling of e-commerce platforms large and small. But not all e-com solutions and merchant processors are hemp friendly. This is a critical consideration for new CBD brands and startups hoping to have an online retail presence.

Before you invest in building a website, make sure you have an online store solution and a merchant bank that will support your business. Vet your vendors and financial networks carefully — you don’t want your site to get shut down, or for critical revenue to get tied up in electronic banking purgatory.

And of course, do ask trusted partners and marketing experts for recommendations that have proven out. It’s easy to avoid many marketing mistakes if you go to your community for a gut check, and follow the lead of experts who have been finding effective solutions year after year.

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Survey: 61% of Americans Plan to Incorporate Cannabis on Valentine’s Day

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A survey conducted by Wired Research found 61% of American adults intend to incorporate cannabis into their Valentine’s Day plans. The survey, which was commissioned by Verano Holdings, found childless adults were more likely to include cannabis in their plans (69% vs. 57%) and men were more likely than women to plan to use cannabis on Valentine’s Day (66% vs. 57%). 

The survey found a perceived increase in romance and sexual performance by incorporating cannabis with 24% of respondents saying cannabis use will put them in a more romantic mood. Another 23% of those surveyed said that cannabis improves their sex life. 

In a statement, CannaSexual sex coach Ashley Manta said that “Cannabis can have a decidedly positive impact on romance and intimacy, especially on occasions like Valentine’s Day where there are so many external stresses and pressures to make the day special.”  

Dr. Shannon Chavez, a psychologist and nationally recognized sex therapist, added that the survey’s data shows “Americans use cannabis to relax or improve their mood, which can help people be present and more connected, which is crucial to a better love life.”  

“Valentine’s Day is a great opportunity for couples to try something new together and try a more dynamic and less formulaic approach to intimacy, which cannabis can help inspire.” — Chavez in a statement 

The survey found that Gen Z and Millennials polled were significantly more likely than Gen X and Boomers to include cannabis in their Valentine’s Day plans (70% vs. 57%). Additionally, individuals living in the Northeast were the most likely to use or gift cannabis this year (66%) compared to 55% of respondents in the Midwest, 61% in the West, and 63% in the South. 

Another 37% of respondents said they would be happy to receive a gift of cannabis on Valentine’s Day. 

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NYPD Files Lawsuits Seeking to Shut Down Unlicensed Cannabis Sales

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The New York City Police Department (NYPD) on Tuesday filed four lawsuits against companies it accuses of selling cannabis illegally in Manhattan. The complaints allege that a police officer observed the sale of cannabis products at these establishments to underage individuals and seeks to shut them down for the illegal sale of cannabis products and operating without a license.  

Additionally, the Manhattan district attorney’s office mailed letters to more than 400 known smoke shops in the borough, warning them of the potential for eviction proceedings for unlawful cannabis sales. 

In a press release, New York City Mayor Eric Adams (D) said that while cannabis legalization “was a major step forward for equity and justice” city officials are “not going to take two steps back by letting illegal smoke shops take over this emerging market.” 

“We are laser-focused on protecting the health and well-being of New Yorkers and ensuring this emerging industry delivers equity to those who deserve it the most. I also want to acknowledge the tireless work of the New York City Police Department and the Sheriff’s Office to combat the proliferation of unlicensed smoke shops across our city and keep New Yorkers safe.” — Adams in a statement 

District Attorney Alvin Bragg said that shops have been selling “unlicensed, unregulated, and untaxed cannabis products” for nearly two years throughout Manhattan. 

“Just as we don’t allow endless unlicensed bars and liquor stores to open on every corner, we cannot allow that for cannabis. It’s not safe to sell products that aren’t properly inspected and regulated for dosage, purity, and contaminants,” he said in a statement. “And it certainly isn’t fair to competing businesses. Advocates fought hard to put racial equity at the center of New York’s cannabis legalization regime.”  

Bragg added that officials “want to give New York’s legal cannabis market a fair chance to thrive and give New Yorkers the security of knowing that a safe, orderly system is in place for cannabis dispensaries.”

“Together, we can level the playing field for New York’s legal cannabis market and deliver on the promise of equity and fairness that legalization advocates fought so long and hard for,” Bragg said in the statement. 

The four lawsuits were filed against Runtz Tobacco, Saint Marks Convenience & Smoke Shop, Sogie Mart Rolls & Puffs, and Broadway. 
 

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Scotts Miracle-Gro Subsidiary Suing Cannabis Industry Investment Firm

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Hawthorne Collective Inc, a subsidiary of Scotts Miracle-Gro Co, is suing investment company JW Asset Management LLC and cannabis company TerrAscend Corp, claiming the duo is violating U.S. antitrust laws and trying to “ruin” Hawthorne’s $175 million interest in a cannabis industry acquisition firm, Reuters reports.  

In the lawsuit filed in Manhattan federal court, Hawthorne accuses JW and TerrAscend of attempting to dominate the board of directors of RIV Capital Inc. JW controls TerrAscend. Last year, RIV Capital, with help from a multimillion-dollar investment from Hawthorne, acquired New York licensed cannabis cultivation and retail company Etain LLC for $247 million. TerrAcsend also sought to buy the New York company. 

According to the lawsuit, JW, the largest shareholder in RIV, has since tried to oust three RIV directors nominated by Hawthorne and replace them with its own “chosen” members, which Hawthorne claims violates antitrust laws. 

In the lawsuit outlined by Reuters, Hawthorne said that the “series of anticompetitive or otherwise wrongful and improper actions” were undertaken “to stop RIV Capital’s entry into the New York-New Jersey market.” The lawsuit claims that stopping RIV’s move into New York would reduce industry competition, to the benefit of TerrAscend. 

The case is The Hawthorne Gardening Company v. JW Asset Management LLC. It is filed in the U.S. District Court, Southern District of New York. 

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Australia Legalizes Psilocybin and MDMA for Medical Purposes

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Australia’s Therapeutic Goods Administration (TGA) announced last week it was making the psychedelic substances psilocybin and MDMA legal for medicinal purposes starting July 1, 2023.

Psilocybin and MDMA were each approved for medical use by the TGA “in combination with psychotherapy for treatment-resistant mental illness in medically controlled environments in certain circumstances,” the agency said in its announcement. The surprise move marked the world’s first federal action to legalize medicinal psychedelics and follows months of public input — currently, the drugs are considered “prohibited substances” in Australia and are only available in controlled clinical trials.

Under the new rules, psychiatrists will be able to prescribe MDMA (commonly known as ecstasy or Molly) for post-traumatic stress syndrome, and psilocybin for depression. Before prescribing the psychedelics, however, the psychiatrists will need approval from both a human ethics committee and under the Authorised Prescriber Scheme, the agency said in a press release.

TGA also warned that because “patients may be vulnerable during psychedelic-assisted psychotherapy,” the program would require “controls to protect these patients.” Additionally, as there are not currently any Australia-based medications containing MDMA or psilocybin, participating psychiatrists will need to import the substances.

TGA said in the announcement that its decision had been influenced both by research into psychedelics for treatment-resistant conditions as well as thousands of public comments submitted in favor of psychedelics therapy.

Australia approved the medical use of cannabis in 2016 but stopped short of adult-use cannabis legalization.

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New York Bill Would Require Some Health Insurers to Cover Medical Cannabis

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A bill in New York would require some health insurers to cover medical cannabis for state-registered patients by deeming it a “prescription drug,” “covered drug,” or “health care service,” Staten Island Live reports. A memo attached to the bill, states that “Access to medical marijuana should not be limited to those who can pay out of pocket. Efforts by registered organizations to offer discounts have helped, but are inadequate for many low-income patients.”

“Some state is going to have to force this issue,” state Sen. Diane Savino (D) said on the Senate floor. “I believe that our state is the one that should lead the way on this.”

If approved, the law would apply to public health insurers in the state, including Medicaid, Child Health Plus, Elderly Pharmaceutical Insurance Coverage (EPIC), and Essential Plan programs.

The legislation would also authorize the health commissioner to certify medical cannabis dispensing sites as Medicaid providers solely for dispensing medical cannabis. Under current New York state law, practitioner office visits related to patient evaluation and certification for medical cannabis are Medicaid-reimbursable services, and practitioners who participate with Medicaid are prohibited from asking for payment for medical cannabis certification from the member, regardless of whether the certification is provided during the initial office visit or subsequent to the first visit, according to the state Office of Cannabis Management.

The measure is currently in the Senate Health Committee.

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Study: Limited Evidence that Cannabis ‘Hangovers’ Stymie Performance

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A new study by researchers at Australia’s University of Sydney suggests that there is little evidence to support the notion that cannabis “hangovers” can stymie performance. The researchers evaluated 20 published studies investigating the effects of THC more than eight hours after consumption and found most didn’t detect “next day” effects of cannabis use and the studies that did were limited. 

“Some lower quality studies have reported ‘next day’ effects of THC on cognitive function and safety-sensitive tasks. However, most studies, including some of higher quality, have found no such effect. Overall, it appears that there is limited scientific evidence to support the assertion that cannabis use impairs ‘next day’ performance. Further studies involving improved methodologies are required to better address this issue.” — “The ‘Next Day’ Effects of Cannabis Use: A Systematic Review,” Cannabis and Cannabinoid Research, Dec. 6, 2022 

The researchers found that 61% of the reviewed studies found no “next day” effects caused by cannabis use, 35% found “unclear or ambiguous next day effects,” with just 4% finding negative “next day effects”; however, the researchers describe those studies as “low quality” and note that they were all published more than 18 years ago.  

In a press release, Dr. Danielle McCartney, a research fellow with the University of Sydney’s Lambert Initiative for Cannabinoid Therapeutics, noted that individuals are told “not to drive or perform other safety-sensitive tasks for 24 hours after cannabis use,” but the study “found little evidence to support this recommendation.”  

“Policy makers should bear in mind that the implementation of very conservative workplace regulations can have serious consequences, such as termination of employment with a positive drug test,” the study authors said. “They can also impact the quality of life of individuals who are required to abstain from medicinal cannabis used to treat conditions such as insomnia or chronic pain for fear of a positive workplace or roadside drug test.” 

 

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Medical Cannabis Bill Reintroduced in North Carolina

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A medical cannabis bill has been reintroduced in North Carolina that would cover 11 conditions in addition to end-of-life and palliative care, WRAL reports. The bill would also establish a Compassionate Use Advisory Board that could add more conditions to the state’s medical cannabis qualifying list.

The legislation would allow patients with cancer, epilepsy, HIV, AIDS, amyotrophic lateral sclerosis (ALS), Crohn’s disease, sickle cell anemia, Parkinson’s disease, post-traumatic stress disorder (PTSD), multiple sclerosis, cachexia or wasting syndrome, severe or persistent nausea in a person who is not pregnant that is related to end-of-life or hospice care, or who is bedridden or homebound because of a condition, terminal illness when the patient’s remaining life expectancy is less than six months, and conditions resulting in the individual receiving hospice care, according to the bill text.

A PTSD qualification would be “subject to evidence that an applicant experienced one or more traumatic events.” And acceptable evidence would include “proof of military service in an active combat zone, that the person was the victim of a violent or sexual crime, or that the person was a first responder.” The bill notes that “details of the trauma shall not be required.”

The measure would allow cannabis flower, vaping, and edibles.

The bill was sent to the Senate Judiciary Committee last month and, if voted favorably by the committee, it would move next to the chamber’s Finance Committee. If approved by the Finance Committee, it would be heard by the Senate Rules and Operations Committee.

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Federal Judge: Ban on Cannabis Users Owning Firearms Is Unconstitutional

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A federal judge in Oklahoma ruled last week that the federal law barring people who use cannabis from owning firearms is unconstitutional, the Associated Press reports. Lawyers for Jared Michael Harrison argued that his Second Amendment rights were violated by the federal law that outlaws “unlawful users or addicts of controlled substances” to possess firearms and U.S. District Judge Patrick Wyrick in Oklahoma City agreed, ruling that federal prosecutors’ arguments that Harrison’s cannabis use “justifies stripping him of his fundamental right to possess a firearm … is not a constitutionally permissible means of disarming Harrison.” 

In May 2020, Harrison was charged after being arrested by police in Lawton, Oklahoma following a traffic stop. During a search of his vehicle, police found a loaded revolver as well as cannabis. Harrison told police he had been on his way to work at a medical cannabis dispensary, but that he did not have a state-issued medical cannabis card.    

Federal prosecutors argued that the portion of the law focused on drug use is “consistent with a longstanding historical tradition in America of disarming presumptively risky persons, namely, felons, the mentally ill, and the intoxicated.” 

Wyrick disagreed, writing in his opinion that “the mere use of marijuana carries none of the characteristics that the Nation’s history and tradition of firearms regulation supports.” He added that using cannabis was “not in and of itself a violent, forceful, or threatening act,” according to a Reuters report.  

Wyrick ultimately dismissed the charges against Harrison. 

Laura Deskin, a public defender representing Harrison, told Reuters that the ruling was a “step in the right direction for a large number of Americans who deserve the right to bear arms and protect their homes just like any other American.” 

  

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Cannabis Tax Revenues in Colorado Fall Nearly $100M from 2021-2022

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Cannabis tax revenues in Colorado have fallen nearly $100 million from 2021 to 2022, the Denver Gazette reports. In 2021, during the coronavirus pandemic, the state collected $423 million in cannabis taxes, which fell to $325 million in 2022. In 2020, the state collected $387 million in cannabis taxes. 

Last year, more than $675 million of cannabis taxes collected in Colorado went to the Marijuana Tax Cash Fund. The Public School Capital Construction Assistance Fund received nearly $391 million, the Public School Fund got $276.6 million, and the rest was divided between local government ($138.38 million) and the state’s general fund ($135.99 million), the report says. 

The Marijuana Industry Group Executive Director Truman Bradley told the Gazette that retail cannabis sales are down across the state.  

“I don’t have a crystal ball as to the future, but there are a few things I know definitively: The first is decade number two of legalization in this state needs to look fundamentally different than decade number one. The cannabis industry is extremely compliant and it can be a good source of revenue for state and local governments, but we need to take a hard look at the regulations that were first put in when no one knew how this was going to go and assess whether that’s actually appropriate or whether it’s time to maybe relax those a little bit.” — Bradley to the Gazette 

During the pandemic, when Colorado imposed stay-at-home orders and many employees shifted to working remotely, cannabis consumption increased. Since then, Colorado has seen reduced sales due, in part, to shifts in consumer behavior, more states legalizing adult-use cannabis, and less disposable income due to inflation. 

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Washington Bill Would Create Agricultural Agency for Cannabis

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A bill introduced in Washington state aims to create a cannabis commission that would function like the other agricultural commissions already operating in the state, FOX 13 reports. Lawmakers supporting the legislation say the commission would help growers and producers compete nationally if or when the federal government loosens restrictions and opens up the entire U.S. market. 

Republican Rep. Kelly Chambers told FOX 13 that the Washington State Cannabis Commission would “be self-funded by the industry, kind of a mandatory fee.” 

The commission’s purposes would include research, advertising government agencies, reviewing market metrics, educating and advising producers, advancing knowledge and practice, limiting youth access, and grant powers for acquiring, creating and owning intellectual property rights, licenses and patents, the report says. 

“Creating and developing intellectual property rights. So, we have other commissions we have a wine commission and a potato commission that promote Washington wine or Washington potatoes. So, sort of do the same thing.” — Chambers to FOX 13 

Chambers added that were federal laws loosened there would be “a lot of competition,” adding that cannabis producers in Washington – among the nation’s first legal producers – have a lot of pride in what they have created.    

The measure is currently in the House Regulated Substances and Gaming Commission. 

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Washington Bill Would Increase Taxes on High THC Products

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A bill proposed in Washington state would significantly increase the tax on cannabis products depending on THC concentrations, FOX 13 reports. Under the proposal, cannabis excise taxes would be restructured into three rates based on product type and THC concentration.  

The measure would also limit the purchase of high-THC products to individuals aged 25 and older. 

Under the bill, a 37% tax would be imposed on flower and concentrate products with THC concentrations less than 35%; a 50% tax would be added to flower and concentrate products with THC levels between 35% and 60%; and a 65% tax would be included on the sales of flower and concentrates with THC levels higher than 60%. 

Rep. Kelly Chambers (R) said that since Washington legalized cannabis for adult use a decade ago, “the market has driven the demand for higher-potency products.” 

“So, that’s why they are very popular, and they are out there. At the same time, we want to maintain that public safety.” — Chambers via FOX 13  

Adan Espino, the executive director of the Craft Cannabis Coalition, told FOX 13 said the high taxes give the organization “heartburn and worries” because they could just drive people into the unregulated market. He noted that high THC cannabis products “should not be in the hands of youth or minors and … when used improperly … can certainly cause harm.”    

The measure is currently in the House Regulated Substances & Gaming Committee.

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Report: Zero Medical Cannabis Markets Are Fully Meeting Patients’ Needs

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In its annual “State of the States” report, Americans for Safe Access (ASA) issued 13 failing grades to state medical cannabis programs, with Idaho and Nebraska both receiving a zero as the last two remaining states with no medical cannabis access. 

In the report, ASA gave failing grades to Georgia, Idaho, Indiana, Kansas, Kentucky, Mississippi, Nebraska, North Carolina, South Carolina, Tennessee, Texas, Wisconsin, and Wyoming. 

No state received an “A” grade, with Connecticut, Illinois, Maryland, Michigan, and Rhode Island earning B-pluses – the highest grade given on the ASA report card.  

The ASA also issued grades for the medical cannabis programs of U.S. territories, including the Commonwealth of the Northern Marina Islands (D+), Guam (C-), Puerto Rico (D), and the Virgin Islands (D+).

“While we can acknowledge that we have come a long way since the first medical cannabis law passed in 1996, we must also recognize that none of the state laws adopted thus far can be considered ideal from a patient’s standpoint.” — ASA, “State of the States” 2022

The group notes that “even in states with full medical cannabis programs, each state differs greatly in how patients can access their medicine, where they can access it, or even what types of products they can access.” Adding that because medical cannabis remains prohibited federally “most state programs leave out millions of potential patients due to issues with affordability, patient rights, and civil protections, or product safety standardization.” 

None of the states earned above a B-plus grade by the ASA because none “include the entire range of protections and rights that should be afforded to patients under the law, with some lagging far behind others.”  

“Because of the differences and deficiencies in legislation and regulations in the states, patients argue that the laws do not function equitably and are often poorly designed, poorly implemented, or both,” the ASA says in the report. “Even well-organized programs can fail to deliver safe or legal access in states with laws that allow local governments to ban medical cannabis businesses from operating, leaving thousands of patients without the access state laws were intended to create.”

The ASA estimates the number of medical cannabis patients in the U.S. exceeds 6 million, an increase of about 1 million from its 2021 report.   

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Argentina Launches Hemp and Cannabis Agency

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Argentina recently launched a hemp and cannabis agency, the Regulatory Agency for the Hemp and Medicinal Cannabis Industry (ARICCAME), which officials hope will help create new jobs and exports for the nation, Voice of America reports. During a conference announcing the move, Economy Minister Sergio Massa said the new agency “opens the door for Argentina to start a new path in terms of industrial exports, on the basis of huge global demand.” 

“All this needs to be transformed into an industry which generates work, which generates exports for Argentina and which generates value.” — Massa via VOA 

The South American nation legalized cannabis oil for medical use in 2017, allowing the government to grow cannabis for research and medical purposes. In 2020, lawmakers legalized the home cultivation of cannabis for medical purposes, made it legal for pharmacies to sell cannabis-derived products, and required insurers to cover cannabis medicines.  

Francisco Echarren, who will head the agency, said the cannabis industry could create thousands of new jobs, technological developments, and new products for export. 

“We have a huge challenge ahead of us,” he said during remarks at the conference, “not only getting a new industry on its feet, but giving millions of Argentines access to products that improve quality of life.” 

Last month, Argentina’s Ministry of Science said it plans to invest more than $106 million in 13 research and development projects in hemp and cannabis across six provinces, according to a Hemp Today report.  

The government estimates hemp and medical cannabis industries in Argentina could create 10,000 new jobs, $500 million in domestic sales, and $50 million in exports annually.  

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Virginia House Panel Tables Bills Seeking to Enact Retail Cannabis Sales

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A Virginia House panel on Tuesday rejected bills that would have taken steps toward allowing adult-use cannabis sales in the state, WRIC reports. The General Laws subcommittee voted down a measure that would have allowed sales to start next year and another that would have allowed the Virginia Cannabis Control Authority (CCA) to begin issuing licenses next year but prohibiting sales until 2025. 

Virginia lawmakers passed adult-use cannabis reforms in 2021 – when both chambers of the legislature and the governor’s office were controlled by Democrats. The laws have since faced pushback as Republicans made gains in both chambers in 2022 and Virginians elected Republican Glenn Youngkin as governor.   

The bill proposed by Del. Keith Hodges (R) would have allowed licenses to be issued at the start of next year but would have allowed adult-use sales by certain medical cannabis companies in July. A substitute was introduced that proposed that the CCA issue draft regulations on the retail market that lawmakers would have to approve.  

The measure introduced by Del. Michael J. Webert (R) would have allowed the CCA to issue cannabis licenses in 2024 but not allow adult-use sales until the following year. Webert told the committee that his bill would ensure tracking “from seed to sale,” set THC limits, and impose a 12% tax rate on cannabis sales. 

Currently, adults 21 and older in Virginia can possess up to an ounce of cannabis, grow up to four plants, receive cannabis as a gift, or buy it from a medical dispensary. 

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