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New York Awards First 36 Retail Cannabis Licenses

11/21/2022

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The New York Office of Cannabis Management issued adult-use cannabis retail licenses on Monday to 36 applicants including 28 “justice-involved” individuals and eight nonprofit organizations.

The candidates were chosen from a pool of 903 applicants, each vying for one of the state’s 175 anticipated retail cannabis licenses. Officials plan to issue 150 of the licenses to businesses with the remaining 25 being reserved for nonprofits. The first licensing wave was reserved for businesses owned by people who were disproportionately affected by the drug war.

BREAKING: In a historic decision, the #NYCCB has approved the first round of CAURD licensees.

28 Justice-involved individuals & 8 Nonprofit organizations will make the first adult use-sales by New York farmers and bring countless opportunities to our communities. #NYCCB

— NYS Office of Cannabis Management (@nys_cannabis) November 21, 2022

The regulatory body also posted on Twitter that it would allow qualifying businesses to start with delivery services. “This will help jumpstart sales and enable these small business owners to generate capital and scale their operations,” OCM tweeted. Officials have previously stated that they intend for legal adult-use sales to launch by the end of the year.

The OCM listed the winning applicants by their application numbers (not company names) but according to a New York Times report, at least three New York City-based nonprofits were included including LIFE Camp, which would become the first Black woman-led nonprofit to receive a license.

New York‘s retail cannabis licensing process was delayed earlier this month after a Michigan-based cannabis company filed a lawsuit against the state’s licensing requirements.

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Bipartisan Bill Would Reschedule ‘Breakthrough Therapy’ Psychedelics & Improve Research

11/21/2022

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Sens. Cory Booker (D-NJ) and Rand Paul (R-KY) introduced a bill last week for the federal lame-duck legislative session that would boost research opportunities for psychedelic substances with a “breakthrough therapy” designation from the FDA, Marijuana Moment reports. The bipartisan Breakthrough Therapies Act would update the Controlled Substances Act to reschedule potential new drug candidates like psilocybin and MDMA from Schedule I to Schedule II as they are flagged by the FDA, in turn improving new drug research and development opportunities.

Sen. Paul said in a press release he was “proud” to propose a bipartisan solution to “make it easier for researchers to conduct studies that can lead to breakthrough therapies to treat patients battling serious and life-threatening conditions.”

The proposal shadows a trend of psychedelics reform including statewide legalization votes in Oregon and Colorado and significant decriminalization reforms in many U.S. cities such as Denver, Oakland, Seattle, and Washington D.C.

“Recent studies suggest that some Schedule I substances such as MDMA and psilocybin could represent an enormous advancement for the treatment of severe post-traumatic stress disorder, depression and addiction. Unfortunately, regulatory red tape and a series of bureaucratic hurdles involved in studying Schedule I substances impedes critical research on these and other promising Schedule I compounds.” — Sen. Cory Booker, in a press release

The bill’s introduction also coincided last week with the launch of the bipartisan Congressional Psychedelics Advancing Clinical Treatments (PACT) Caucus — formed by Reps. Lou Correa (D-CA) and Jack Bergman (R-MI) — which seeks not to legalize or regulate psychedelic substances but to educate lawmakers and the public about their therapeutic potential.

Additionally, Congress last week passed the Medical Marijuana and Cannabidiol Research Expansion Act, the country’s first-ever standalone cannabis reforms bill, which will expand research opportunities into medical cannabis and protect doctors while discussing the risks and benefits of cannabis with their patients.

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DC Bill Would Offer Unregulated Cannabis Shops Access to Retail Licenses

11/21/2022

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This article was written by Gaspard Le Dem (@GLD_Live on Twitter) and originally published by Outlaw Report.

D.C.’s unlicensed cannabis storefronts — familiarly known as gifting or “I-71” shops — have dodged multiple attempts over the last year by local leaders to crack down on their business.

Earlier this year, they repeatedly locked horns with D.C. Council Chairman Phil Mendelson, who tried passing emergency legislation to shut them down and blasted them as illegal operations run by Big Weed companies from outside the District.

In the end, the gray market came out on top: Mendelson’s crackdown bills failed to pass and a proposed city task force to investigate gifting shops never saw the light of day. But it took persistent pushback from groups like the I-71 Committee and Generational Equity Movement, who aggressively lobbied the council and rallied business owners against efforts to mess with their industry.

Now, those efforts appear to be bearing fruit. Recent amendments to a comprehensive cannabis bill introduced last year by Mendelson on behalf of Mayor Muriel Bowser could offer gifting shops a path to legality by folding them into the District’s regulated market for medical cannabis.

Initially, the Medical Cannabis Amendment Act sought to permanently loosen regulations on medical weed businesses by, among other provisions, allowing dispensaries to deliver pot and eliminating a cap on the number of plants cultivators can grow. It also aimed to further social equity by allowing people convicted of certain weed offenses to participate in the industry.

But last month, the council’s Committee on the Judiciary and Public Safety dramatically expanded the bill’s scope by adding a slew of provisions that, if enacted, would be even more transformative for D.C.’s cannabis industry.

Most notably, the amendments would allow unlicensed cannabis businesses to obtain “transitional licenses” from D.C.’s Alcoholic Beverage Regulation Administration, which oversees the District’s medical weed program. To qualify, gifting shops would need to meet some basic requirements, like having a valid business license, being at least 60% owned by one or more D.C. residents, being located more than 300 feet from a school, and more than 400 feet from another dispensary.

The amendments, buried deep in a 253-page committee report published Oct. 21, caught many cannabis industry stakeholders by surprise. And while some have welcomed the idea of easing unlicensed weed businesses into the legal market, others see it as an unfair proposal that would reward bad actors while punishing businesses that have played by the rules.

Gifters are skeptical

Gray market supporters say D.C.’s gifting shops employ hundreds of Black residents who have disproportionately been targeted by punitive cannabis laws, and that allowing unlicensed vendors to join the legal market is a matter of repairing the damage of the War on Drugs.

Yet gifting industry groups have been quick to voice their discontent with the amended bill, and have complained it was drafted without input from unlicensed vendors.

“We don’t oppose the creation of transitional licenses,” Terrence White, Chairman of the I-71 Committee, said in a statement emailed to The Outlaw Report. “This is something we’ve advocated for since our founding. However, we believe that this was hastily developed with not enough thought put into how it will actually be implemented.”

Chief among White’s concerns is that gifting businesses would be forced to close while they wait for regulators to grant them transitional licenses.

“This means that legacy operators would have to sit on their properties/pay rent for an undetermined amount of time, lay off their employees, and wait until ABRA sets guidelines for compliance before legacy brands are able to continue operations,” he said.

The amended bill doesn’t specify whether gifting shops would need to close while waiting for ABRA to grant them transitional licenses, but the I-71 Committee says that lack of clarity is part of the problem.

“It is incomplete, missing important details and dates to protect minority and legacy operators, and imposes crippling penalties that will harm the current I-71 businesses,” said White.

He also criticized Mendelson and his staff for not taking the I-71 Committee’s suggestions into account while drafting the bill. “We have met with them on a number of occasions and provided our suggestions, but we were met with hostility,” White said.

A staffer for Mendelson did not respond to multiple requests for comment from The Outlaw Report.

Per the committee report, gifting shops would have a 60-day window to apply for a transitional license. If approved, they’d need to submit a “compliance plan” explaining how they intend to get up to speed with ABRA regulations. Regulators would then monitor the applicant business until the compliance plan is deemed fully implemented, at which point ABRA would issue a permanent dispensary license upon payment of a fee.

The amended bill would also create new civil penalties against businesses that operate without a cannabis license, allowing the mayor to seal their premises, slap them with fines of up to $20,000, and revoke their basic business licenses. Additionally, landlords who rent retail space to unlicensed businesses could be fined up to $10,000.

The report notes current enforcement methods have failed because federal prosecutors have repeatedly declined to prosecute charges brought by the Metropolitan Police Department, which routinely raids gifting businesses.

“In many cases, the owners simply relocate to a new location and resume operations,” the report says. “Given the ineffectiveness of criminal penalties, the [amendments] would provide a mechanism for reasonable civil enforcement […].”

Another concern for gifters is that D.C.’s existing medical cannabis market isn’t prepared to handle an influx of newly licensed dispensaries, particularly when it comes to supplying retailers with enough product.

“There are not currently enough cultivation centers equipped to supply the drastic increase in product demand that would be needed when legacy operators transition into medical dispensaries,” White said.

A possible boon for cultivators

For those existing cultivators, bringing gifting shops into the regulated medical market could be a huge financial boon. Currently, D.C. growers are allowed to sell their product — which is closely tracked by ABRA — only to the eight permitted medical dispensaries in the District. (A federal ban on moving weed across state lines blocks them from selling to retailers in other states.)

Meanwhile, gifting shops stock their shelves with pot from various unregulated sources, buying from local basement grow ops or from California’s booming market of unlicensed cultivators. With a transitional license from ABRA, however, gifters would be forced to buy pot exclusively from D.C.’s licensed cultivators.

“We’re really excited about it,” said Grace Hyde, chief operations officer at District Cannabis, a cultivation company based in Ward 7. “I think this is a really reasonable compromise to what everyone wants, which is to grow the market.”

Hyde said granting permits to gifting shops would allow D.C. to meet a surge in demand for cannabis. ABRA enacted new rules this year allowing District residents to sign up for medical weed without a doctor’s note, and even authorizing tourists to shop at licensed dispensaries.

“We need more variety, brands and types of stores,” Hyde said. “Our existing dispensaries are great, but there’s only seven of them, and there’s a lot of people in the District of Columbia.”

“The more the merrier,” she added.

But most importantly, Hyde said, granting licenses to gifting shops would help build a more socially equitable weed industry in the District.

“The I-71 stores have been saying for years, ‘we want to be regulated, give us a license,’” Hyde said. “This makes their license acquisition about as easy as it could reasonably be.”

A blessing and a curse

For D.C.’s existing licensed dispensaries, gifting businesses joining D.C.’s legal cannabis market could be a blessing and a curse.

On the one hand, it would create more direct competition in a relatively small market that has struggled with stagnating patient registrations and high taxes that cut into dispensaries’ profit margins. On the other hand, licensed dispensaries are already competing with gifting shops, which don’t pay cannabis taxes and aren’t subject to ABRA regulations, and integrating them into the medical market could level the playing field by forcing them to play by the same rules as licensed operators.

Norbert Pickett, the CEO and owner of Cannabliss, a licensed medical dispensary in the Northeast D.C. neighborhood of Deanwood, says gifting shops should be required to close their doors until they are granted a transitional license.

“There’s kind of no way around it,” said Pickett. “If you don’t have a license, that’s the law, you can’t operate.”

He said businesses that are granted transitional licenses would need to be closely monitored to ensure they are following the same regulations as existing dispensaries.

“They’re going to have to abide by those same laws if they want to become part of the market,” Pickett said.

He added that ABRA should make sure neighborhoods aren’t saturated with weed businesses to avoid creating unnecessary competition. Gifting businesses have over the years flocked to busy nightlife districts like Northeast’s H Street Corridor or the 18th Street Corridor in Adams Morgan, at times creating tensions with some residents who see them as a nuisance.

“The question is, how many are there going to be per ward so that we’re not encroaching on each other?,” Pickett said.

The deadline to pass the bill is fast approaching. The council’s current 2021-2022 legislative period ends next month, and the measure still needs approval from the council’s Committee on Business and Economic Development before it can be scheduled for a full vote.

At a Q&A session with the D.C. Cannabis Business Association on Monday, ABRA Director Fred Moosally said the agency could start rolling out transitional licenses as early as February, provided the council and mayor approve the bill, and that it clears the required 45-day congressional review process for new D.C. laws.

ABRA did not answer specific questions from The Outlaw Report about transitional licenses and how the agency would implement them, but a spokesperson said it is prepared for a shift in local weed regulations.

“ABRA will be prepared to implement any medical cannabis legislation passed by the DC Council and signed into law by Mayor Muriel Bowser,” a spokesperson said.

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Cannabis Brand to Sponsor Professional Hockey Team

11/18/2022

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Chicago-based cannabis company Verilife has signed a one-year sponsorship with the Chicago Wolves of the American Hockey League (AHL), Ad Week reports. The Wolves, affiliates of the Carolina Hurricanes of the National Hockey League (NHL) are the 2022 Calder Cup champions and have won the championship three times since 2022.

According to Ad Week, more than 900,000 fans watch the team’s games per season.

In May 2021, the company announced a partnership with Chicago Cubs legend and Major League Baseball (MLB) Hall of Famer Ryne Sandberg.

Erika Salgado Guerra, chief marketing officer at PharmaCann, the parent company of Verilife, told Ad Week that the deal with Sandberg “opened the door” for the company’s sponsorship with sports teams and players.

“…These are baby steps but, if done properly, they can be a big step for where the industry is going. Cannabis combining efforts with a smaller league is how we’ll get to the future.” — Salgado Guerra to Ad Week

Salgado Guerra told Ad Week that the Wolves approached the company after seeing the partnership with Sandberg play out and called the deal “one of the fastest approvals” of her career.

The brand will have a presence at the Allstate Arena in Rosemont, including the Jumbotron, scoreboard, digital banners, dashboards, LED screens, and televisions throughout the venue. The partnership also includes a charitable component to benefit Facing Forward to End Homelessness, a Chicago nonprofit organization dedicated to ending homelessness in the city, according to a Forbes report.

Chris Friederich, senior executive of corporate partnerships with the Wolves, told Forbes that it is “going to be fantastic” to see how much money the partnership would raise for Facing Forward.

“The Chicago Wolves and Verilife are both dedicated to helping the communities in which we live and work,” he said, “and we are grateful for the opportunity to help people experiencing homelessness through this sponsorship.”

Last month, MLB announced a partnership with CBD company Charlotte’s Web to make the brand the “Official CBD of Major League Baseball.” MLB is the first major league sports association to announce a partnership with a company in the cannabis space.

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Oregon Firm Files Lawsuit Challenging State Laws Against Cannabis Exports

11/18/2022

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An Oregon-based cannabis wholesaler has filed a federal lawsuit challenging the constitutionality of the state laws prohibiting cannabis exports and imports from other states, Marijuana Moment reports. In a letter sent by attorneys representing Jefferson Packing House, LLC to Gov. Kate Brown (D), Attorney General Ellen Rosenblum, and Oregon Liquor and Cannabis Commission (OLCC) Director Steven Marks, the attorneys wrote that they “recognize that marijuana is still illegal under federal law and that this lawsuit will not change that fact.”

“However, we believe that the State of Oregon should be fully aligned with supporting its local marijuana industry,” the letter states, “and therefore that Oregon law should no longer prohibit the export of marijuana to other states.”

The lawsuit, filed in the U.S District Court for the District of Oregon, notes that Congress is given the “exclusive authority” to “regulate commerce between the States” and under the dormant Commerce Clause, states “are prohibited from enacting laws regulating interstate commerce because it is the exclusive purview of Congress.”

Recently, the commerce clause was used by the U.S. Court of Appeals for the First Circuit to justify striking down Maine’s residency requirement to own a medical cannabis license. Experts believe that case may have wider implications for interstate cannabis trade, the report says.

Another reason given for the lawsuit is that barring interstate cannabis commerce “harms not only Oregon growers, processors, and wholesalers, but also non-residents, who are denied access to the high-quality marijuana products created in Oregon unless they physically travel to Oregon,” the report says.

The lawsuit notes the longstanding view by the Department of Justice that interstate cannabis trade is a prosecutorial offense and, as a result, many states have explicitly banned the practice to protect themselves from federal interference in their adult-use cannabis markets. However, the lawsuit says these laws “discriminate against interstate commerce by nakedly prohibiting such commerce, without any legitimate, nonprotectionist purpose, and are therefore prohibited by the dormant Commerce Clause of the U.S. Constitution.”

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Appeal Filed After Judge Dismisses Lawsuit Challenging Gun Ownership Ban for Cannabis Patients

11/18/2022

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Florida Agriculture Commissioner Nikki Fried and other plaintiffs will appeal the dismissal of a lawsuit challenging federal prohibitions on medical cannabis patients buying and possessing firearms, CBS News reports. The lawsuit was filed in April and challenged the cannabis use question on the federal form required to purchase firearms.

The lawsuit had argued the question violates the Second Amendment rights of state-approved medical cannabis patients and violates a congressional budget provision preventing federal agents from interfering with state-approved cannabis laws. The lawsuit alleged the prohibitions “forbid Floridians from possessing or purchasing a firearm on the sole basis that they are state-law-abiding medical marijuana patients.”

Earlier this month, U.S. District Judge Allen Winsor ruled in favor of the Justice Department and dismissed the case. Winsor ruled that under the U.S. Constitution’s Supremacy Clause, cannabis remains illegal despite Florida’s medical cannabis amendment.

“In 2016, Florida stopped criminalizing the medical use of marijuana. Many people refer to this change as Florida’s ‘legalizing’ medical marijuana, but Florida did no such thing. It couldn’t. ‘Under the Supremacy Clause of the Constitution, state laws cannot permit what federal law prohibits,’ and federal law still prohibits possession of marijuana – for medical purposes or otherwise.” — Winsor in the ruling, via CBS News

In a statement, Fried said, “no patient should have to choose between their medicine and employment, or a roof over their head, or access to capital – or any of their constitutional rights.”

“I will never stop being an advocate for full cannabis legalization. Full legalization will resolve many of the issues caused by irrational, inconsistent, and incoherent federal cannabis policies,” she said. “Medical cannabis patients have the same Second Amendment rights as every American. Federal law cannot deem it illegal for a medical cannabis cardholder to purchase a firearm.”

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Congress Passes Medical Cannabis Research Reforms Bill

11/17/2022

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The U.S. Senate yesterday passed a medical cannabis research reforms bill with unanimous consent, POLITICO reports. The proposal had already passed through the House earlier this year, also with unanimous consent, making it the first standalone cannabis reforms bill ever sent to a sitting U.S. president for their signature.

The aptly named Medical Marijuana and Cannabidiol Research Expansion Act — sponsored in the House by Rep. Earl Blumenauer (D-OR) and in the Senate by Sen. Dianne Feinstein (D-CA) — will expand research opportunities for studying the efficacy of medical cannabis. The bill will also protect doctors in discussing the risks and benefits of medical cannabis use with their patients.

“After working on the issue of cannabis reform for decades, finally the dam is starting to break. At a time when more than 155 million Americans reside where adult-use of cannabis is legal at the state or local level and there are four million registered medical marijuana users with many more likely to self-medicate, it is essential that we are able to fully study the impacts of cannabis use.” — Rep. Blumenauer, via POLITICO

For decades, cannabis has been scheduled alongside other Schedule I substances like heroin or ecstasy which, according to the DEA, are “defined as drugs with no currently accepted medical use and a high potential for abuse.” While the plant is to remain in that category, for now, the recently approved cannabis research act should open up research opportunities that were previously hamstrung by DEA footdragging and other disinterested federal agencies.

President Biden said while campaigning that he believes cannabis should be easier to research and that nobody should be jailed for consuming cannabis. The president took his first major step last month toward honoring those statements when he issued a blanket pardon for all federal prisoners with low-level cannabis convictions and directed his Secretary of Health and Human Services and the U.S. Attorney General to begin an administrative review of the current scheduling of cannabis.

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Kentucky Governor Allows Some People to Possess and Use Medical Cannabis

11/17/2022

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Kentucky Gov. Andy Beshear (D) on Tuesday issued an executive order allowing individuals with certain severe medical conditions and who meet specific requirements to be able to possess and consume small amounts of cannabis purchased from a state with legal access.

Beshear’s action marks the first time that a governor has legalized medical cannabis possession and use via executive order. The order does not set up a legal mechanism for patients to purchase cannabis in the state. Kentucky borders West Virginia and Ohio, which have legalized medical cannabis, and Illinois, which allows adult-use sales.

The order includes a list of eligible conditions and requires written certification of the condition from a physician. In a press release, the governor’s office notes that patients covered under the order “will need to keep their receipt” from legal purchases.

“Kentuckians suffering from chronic and terminal conditions are going to be able to get the treatment they need without living in fear of a misdemeanor. With 37 states already legalizing medical cannabis and 90% of Kentucky adults supporting it, I am doing what I can to provide access and relief to those who meet certain conditions and need it to better enjoy their life, without pain.” — Beshear in a statement

Beshear also signed a measure to regulate the sale of delta-8 THC. In a statement, Beshear said the state needed to establish a regulatory structure for delta-8 products as there are currently “no checks on how it is packaged and sold.”

“The structure can and will also serve as a template for when the General Assembly fully legalizes medical cannabis,” Beshear said. “That means we can learn in real-time, train our people, and be ready to go.”

Beshear had convened a Medical Cannabis Advisory Committee to help guide his cannabis policies after lawmakers had failed to pass the reforms. That committee found 98% of Kentuckians supported medical cannabis legalization.

Last month, Beshear announced that individuals convicted of simple cannabis possession with otherwise clean records can apply for a pardon of the charges.

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Most Oregon Counties Ban Psilocybin Service Centers

11/17/2022

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Nearly 70% of Oregon counties, 25 out of 36, and several cities have voted to ban psilocybin in response to the 2020 initiative that legalized the use of psilocybin in licensed “service centers,” Leafly reports. The bans are similar to the bans seen in states following the passage of adult-use cannabis laws.

Despite the pushback, psilocybin clinics are moving forward in 11 counties next year, the report says. So far, the counties of Multnomah, Washington, Lane, Jackson, Deschutes, Yamhill, Benton, Columbia, Lincoln, Wasco, and Hood River will allow the service centers.

Some cities in counties without a ban have passed their own local rules outlawing the practice, including La Pine and Redmond in Deschutes Counties. Other cities took a wait-and-see approach, implementing bans for up to two years so residents can become more familiar with psilocybin and the effects of the reforms on the state. Some of Oregon’s larger cities like Portland in Multnomah County, Bend in Deschutes County, Eugene in Lane County, and Ashland in Jackson County are set to allow the service centers, the report says.

Every county that voted “No” in 2020 for the reforms followed up with bans this year. Several counties which voted “Yes” on the measure — including Clackamas, Clatsop, Tillamook, and Curry — reversed course and passed a ban during the election last week. Meanwhile, Jackson County and Deschutes County last Tuesday defied their own ban ordinances.

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More Than 100k Low-Level Cannabis Cases Could Be Expunged Under Missouri Legalization Law

11/17/2022

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Officials in Missouri hope to resolve more than 100,000 low-level cannabis possession cases over the next year after voters approved a cannabis legalization measure on Election Day, KHQA reports. Under the law, such charges will be automatically expunged.

Kathryn Jamboretz, communication director for Legal MO ’22, told KHQA that “right off the top” money derived from adult-use cannabis sales will be used for expungements.

“…That’s to do all the back-end paperwork and then after that it will be split into three buckets, these are great things for Missouri. Veterans’ services, things like rides and therapy. Public defenders, who are so severely underfunded across the state. And then finally to drug treatment and counseling. So, we are really pleased with the amount of money this will raise though sales tax.” — Jamboretz to KHQA

Officials estimate legalization will bring in $40 million annually to state coffers.

Jamboretz described the criminal justice reforms in the measure as “truly life-changing.”

“These low-level marijuana possessions follow you your entire life. For every job application, you must disclose it. It can really hold down your economic prospects,” she said in the report. “And it’s really taken a toll on underserved communities. The number of wages that are being held down by these low-level convictions holding people back.”

She indicated the expungement process will start on December 8.

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U.S. Reps Ask Biden to Pardon Low-Level Cannabis Crimes for Immigrants

11/16/2022

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In a letter to President Joe Biden (D), 17 members of Congress requested his Administration extend pardons of simple cannabis possession convictions to immigrants and reopen the immigration cases of those who were deported for cannabis offenses.

The letter signatories include Democratic Reps. Alexandria Ocasio-Cortez (NY), Ilhan Omar (MN), Jesús G. “Chuy” García (IL), Barbara Lee (CA), Cori Bush (MO), Jan Schakowsky (IL), Adriano Espaillat (NY), Eleanor Holmes Norton (DC), Dwight Evans (PA), Juan Vargas (CA), Marie Newman (IL), Bonnie Watson Coleman (NJ), Danny Davis (IL), Ritchie Torres (NY), Rashida Tlaib (MI), Jimmy Gomez (CA), and Jamaal Bowman (NY).

“Using the power of the pardon is a constitutional imperative and a critical tool in rectifying the compounding racial injustices of draconian drug policies. However, continuing to deport immigrants for simple marijuana possession will only exacerbate racial disparities, traumatize families and communities vital to this country’s fabric, and create ineffective legal regimes at taxpayers’ expense. This is especially true given the racial disparities that exist for Black migrants. Not only are black individuals four times as likely to be arrested for marijuana possession, but a 2021 study found that Black immigrants in ICE detention were also more likely to be detained and up to six times as likely to be placed in solitary confinement.” — Letter to Biden, Nov. 14, 2022

The representatives also call on Biden to federally decriminalize and deschedule cannabis. The letter’s authors say those reforms, paired with the pardon, “would restore the lives and dignity of thousands of migrants who were deported for conduct that is now legal in varying capacities across 41 states.”

“After decades of the failed war on drugs and the countless lives and families it ruined, our country must begin repairing those harms,” the letter states. “Granting pardons to all simple marijuana possession offenses – regardless of immigration status – demonstrates genuine compassion while ensuring that our country continues to mitigate the inhumane and ineffective drudge policies that have ravaged communities of color for so long.”

Last month, Biden issued a pardon for all federal cannabis possession charges and said his Administration would review potential descheduling. A subsequent YouGov America poll found 62% of Americans backed the pardons. Following Biden’s announcement, Health & Human Services Secretary Xavier Becerra said that the agency intended to move “as quickly” as they could to deliver on Biden’s request for the review of federal cannabis laws.

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Poll: Support for Cannabis Legalization in the U.S. Remains at Record High

11/16/2022

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According to a Gallup poll released Tuesday, Americans’ support for cannabis legalization remains at the record high of 68% recorded by the pollster over the last two years. The poll found a majority support for the reforms among most subgroups, including 81% of Democrats and 51% of Republicans.

The only subgroups that did not back the reforms were conservatives (49%) and respondents who attend church weekly (46%). Support was highest among the non-religious (89%) and liberals (84%). Support among older adults and Hispanic adults was also below the national average at 53% and 56%, respectively.

The majority of individuals aged 18-29 from all political ideologies backed cannabis legalization, including 65% of young conservatives, 82% of young moderates, and 86% of young liberals. Fifty-nine percent of conservatives aged 30-49 favored legalization, along with 78% of the moderate cohort and 85% of liberals of the same age. Support among 50- 64-year-old conservatives was 49%, while 70% of moderates and 82% of liberals from the same age group backed the reforms. Just 32% of conservatives 65 and older supported legalization, along with 62% of moderates and 81% of liberals of the same age.

When Gallup first asked about legalizing cannabis in 1969, just 12% of Americans were in favor. Support reached 31% in 2000 and surpassed the majority level in 2013. Since 2016, at least six in 10 have been in favor.

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Bell County, Texas DA Asks Police Chief to Resume Low-Level Cannabis Crime Enforcement

11/16/2022

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Bell County, Texas District Attorney Henry Garza has sent a letter to Killeen Police Chief Charles Kimble asking him to rescind an order to end enforcement of low-level cannabis possession crimes, the Killeen Daily Herald reports. Killeen was one of five cities where voters approved a cannabis decriminalization ballot question on Election Day.

Two days after voters approved the reforms, Kimble issued “special order 22-07″ to end the enforcement of the state law.

“No arrests will be made for misdemeanor possession of marijuana,” the order states. “In lieu of a marijuana arrest, officers will not arrest for possession of drug paraphernalia or drug residue.”

Garza told the Herald that he expects to meet with the police chief about the request, which was also signed by County Attorney Jim Nichols.

“In that order, you instruct your employees, among other things, not to make arrests for the possession of misdemeanor amounts of marijuana nor to consider the odor of marijuana or hemp as probable cause for any search and seizure. I am writing to respectfully request that you rescind this order.” — Garza, in the letter, via the Herald

Louie Minor, an activist with Ground Game Texas — the group behind the campaign — and who was elected as a Bell County Commissioner on the same night voters approved the decriminalization initiative, called Garza’s request “a non-binding opinion” and described it as “worthless as the paper it is written on.”

“The DA handles felonies, not misdemeanors,” Minor told the Herald. “The people voted on it, and the city is moving in the right direction. I praise the chief for giving a special order to comply with the will of the voters.”

In the letter, Garza said the non-enforcement of cannabis crimes runs afoul of Texas state law.

The city council is scheduled to canvass the election’s results on November 22. City Council member Jose Segarra said the issue is something the city attorney would have to discuss with council members and give them legal guidance.

In Killeen, the measure was approved by almost 70% of voters.

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Texas Medical Cannabis Patient Count Steadily Increasing

11/15/2022

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Over the last 18 months, patient registration in Texas’ medical cannabis program has increased by an average of 10% month-over-month, Chief Wayne Mueller, of the Texas Department of Public Safety, told KXAN. Mueller described the increase as “significant” and expects between the next 18 to 24 months, there will be 100,000 patients enrolled in the state program.

To assist with the program’s growth, officials plan to hire a consultant to help them add more licenses as there are still only three throughout the state.

“While we are in this fledgling stage with this program, I think bringing in a person or an entity that has experience with other state programs that were at the same point (at some) time will give us some vital insights so that we’re not trying to reinvent any wheels.” — Mueller to KXAN

Recently, public safety commissioners passed a working group that would help facilitate any changes to the program approved by state lawmakers. They also approved a resolution to allow the current licensees to open satellite locations throughout the state to help with patient access.

A poll published in August conducted by the University of Texas at Tyler and the Dallas Morning News found 72% of registered voters back the state’s medical cannabis reforms.

Last summer, Texas Agriculture Commissioner Sid Miller (R) campaigned to support medical cannabis access in the state, saying officials needed “to open it up to everybody and quit picking winners and losers.” In July, Miller penned an op-ed calling for the end of cannabis prohibition in Texas.

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Tyson 2.0 Partners with Evander Holyfield on ‘Holy Ears’ Gummy Line

11/15/2022

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World-famous professional boxers and longtime ring opponents Mike Tyson and Evander Holyfield have announced the launch of a delta-9 and delta-8 THC line of ear-shaped gummies. Tyson famously bit off a chunk of Holyfield’s ear in a heavyweight championship boxing match in 1997.

Tyson is the co-founder and chief brand officer of Tyson 2.0.

Now the duo is releasing the gummies, known as Holy Ears, as part of the Tyson 2.0 line under a newly formed brand house called Carma Holdings. The company already sells a gummy line shaped like an ear with a bite mark called Mike Bites.

“From Mike Bites to Holy Ears, now cannabis fans around the world can experience the same wellness benefits that plant-based products have brought me. It’s a privilege to reunite with my former opponent and now long-time friend, and turn years of fights and knockouts into a partnership that can make a positive impact and heal people.” — Tyson in a press release

“Mike and I have a long history of competition and respect for one another. And that night changed both of our lives. Back then, we didn’t realize that even as power athletes, we were also in a lot of pain,” Holyfield said in a statement. “Now, nearly 20 years later, we have the opportunity to share the medicine we really needed throughout our careers.”

Holy Ears will be available next month online and in stores in Arizona, Illinois, Nevada, and New Jersey.

Professional wrestler Ric Flair’s cannabis line, Drip, is also under the Carma brand house.

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Minnesota Governor Believes Cannabis Legalization Could Happen Next Session

11/15/2022

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Minnesota Gov. Tim Walz (D) said during a radio appearance last week that the state could pass cannabis legalization reforms as soon as the next session after the election saw Democrats take control over both chambers of the legislature and Walz was reelected, CBS Minnesota reports.

During a podcast last Thursday, former Gov. Jesse Ventura said Walz has indicated cannabis legalization would be one of the first bills passed by the new Democratic-led legislature.

“It just makes sense. Prohibition didn’t work. We get better regulation. I just mentioned that I think it would be important to recognize [Ventura], asked him if he would be there when we get this done.” — Walz during an appearance on WCCO radio via CBS News

House Speaker Melissa Hortman (D) told CBS News that the “caucus supports adult-use cannabis” and that she believes lawmakers “will pass that bill.”

In the last session, the House passed a broad cannabis legalization bill but the measure was blocked by the Republican-led Senate.

Ventura, the former professional wrestler and actor who served as governor of Minnesota from 1999 to 2003, floated the idea of cannabis legalization during his tenure. Walz said Ventura “would have been on the front line of the first states to do this.”

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Milwaukee, Wisconsin Voters Back Non-Binding Referendum to Legalize Cannabis

11/15/2022

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Voters in Milwaukee County, Wisconsin on Election Day passed an advisory referendum backing the legalization of cannabis in the state, the Milwaukee Journal reports. Voters in the county were asked: “Do you favor allowing adults 21 years of age and older to engage in the personal use of marijuana, while also regulating commercial marijuana-related activities, and imposing a tax on the sale of marijuana?”

In all, more than 74% of voters backed the referendum, which is nonbinding.

In September, Gov. Tony Evers (D) said that were he to be reelected, he would include adult-use cannabis legalization in his next state budget. Evers retained the governorship during last week’s election.

Evers had included legalization in his 2021 state budget but was blocked by the Republican-led Legislature. During the midterm elections, Democrats picked up seats in the state Assembly and Senate; however, only enough to prevent Republicans from maintaining their two-thirds majorities, rather than majorities, according to the Associated Press.

Under Evers’ previous legalization plan, his office estimated legal cannabis sales could generate $166 million in revenue that the governor proposed could be used to help fund schools.

Last year, Evers said he was “tired” of Illinois Gov. JB Pritzker thanking him for the Wisconsin residents that crossed state lines to buy legal cannabis.

“Frankly I’m kind of tired of talking to the governor from Illinois,” Evers said in a video posted to Twitter. “Whenever I get with him, he thanks me for having Wisconsinites cross the border to buy marijuana.”

End

Matt Garippa: How Purchasing Strategies Create More Financial Options in Cannabis

11/15/2022

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Cannabis companies can provide a solid foundation for their businesses in an otherwise volatile emerging industry by simplifying their business operations and maximizing their spending efficiency. Order.co is a spend efficiency platform that manages a cannabis company’s entire purchasing process, freeing up the operators’ time to focus on growing and scaling their business. Through the platform, companies can pay vendors, consolidate invoices, automate invoice creation, customize workflows, forecast budgets, and more.

Prior to his role as CBO for Order.co, Matt Garippa worked in fixed-income trading after training in data science. In this interview, Matt shares how the Order.co SaaS works for cannabis companies, the true role of spend efficiency in operating a business, and gives advice for entrepreneurs seeking funding.

Check out the interview below.

Ganjapreneur: What is Order.co and how does the platform support cannabis businesses?

Matt Garippa: Order.co is a Spend Efficiency Platform that simplifies how businesses purchase and pay for everything they need to operate. In building this technology, we’ve found unbelievable partners in cannabis businesses.

Because of financial constraints and unfulfilled market demand, we’ve discovered that many cannabis entrepreneurs are already thinking about how to scale efficiently with high overhead in physical goods.

So, our mission aligns with theirs, and for our 100+ cannabis customers, we’ve seen that they can push the boundaries on how they grow by focusing on efficient spend.

What was your professional background prior to co-founding Order.co with your brother Zachary?

Before Order.co, I was heavily involved in finance – specifically fixed-income trading. I’m a data scientist by training, so the intersection of data and financial products has always been my passion.

Since Order.co has started supporting cannabis industry businesses, what are some of the most common financial obstacles you’ve seen such companies struggle with?

Cannabis businesses struggle to access traditional financial products like working capital loans or revolving credit. Building a business is really challenging in itself, and the obstacle we continue to hear from the cannabis industry is that the lack of access to capital compounds these challenges.

We’ve seen cannabis businesses forced to make business decisions that optimize freeing up cash flow immediately instead of focusing on growth or margin.

For example, we’ve seen companies turn down large POs because they don’t have enough cash to produce and package. Or they’ll sell inventory for less of a profit to distributors versus selling directly into retail because they need the cash influx immediately.

We noticed these issues frequently, so we created different methods for our cannabis customers to access trade credit and cash advances.

What options does a cannabis business have when it comes to securing financing??

Right now, the “easiest” form of financing for a cannabis business is probably through an equity offering – but that’s dilutive to owners. Borrowing should be the better option, but most traditional lenders still won’t play in the space. Leveraging trade finance (extended terms and working capital from existing supply chain partners) is one of the best options available to cannabis businesses today, and it’s often faster and easier versus borrowing from banks or private lenders.

And for cannabis companies looking to avoid additional operational complexity or borrowing, a Spend Efficiency Platform like Order.co helps businesses access these financing options in their normal buying processes.

Does the role of spend efficiency become more critical for a business once funds have been raised? How much can a company actually save by routing all expenses through a centralized tracking system?

Businesses proactively looking for solutions post-fundraising are prime candidates for a Spend Efficiency Platform because they need to spend with purpose and have total clarity into every dollar of their business spend.

Businesses that are pre-funding might not be aware that there’s a problem with their purchasing process, so subscribing to a Spend Efficiency Platform may be premature. However, once a business becomes aware of a problem and has raised funds in some capacity, they either proactively seek a solution or remain reactive.

The ROI on a Spend Efficiency Platform is so highly positive between hard dollar savings, human capital cost savings, and time savings that companies can realize up to 20% of their monthly expenditures as savings using a platform like Order.co. You’re leaving money on the table by not utilizing a Spend Efficiency Platform, no matter your industry.

How do you think the paradigm for financing in the cannabis industry will change once banks are formally allowed to serve the industry at the federal level?

Competition spurs innovation. As cannabis becomes more accepted at the federal level, more traditional finance players will enter the cannabis financing space and offer cannabis companies more traditional financial products.

We’re already bringing the best of those financial options to our customers so they can make strategic purchasing decisions without cash flow constraints. When financing becomes more readily available to all in the space, there may be a boom in initial expansions and growth plans.

But, longer term, it comes down to HOW those businesses are spending the money they’re now able to raise. So, I think the clear winners will emerge over time of who is efficiently spending the money they can now access.

In the current paradigm of state-level legal markets during federal prohibition, would you say it is probably better to pursue market share & brand awareness, or profitability at a smaller scale?

I don’t think there is a one-size fits all strategy for cannabis. Early on, the focus was clearly on market share and brand awareness. Still, in today’s market, there seems to be a clear emphasis on ensuring you can run a sustainable, profitable business.

Whether you’re a single-site operation or a multi-state operator, I recommend investing early in a solid operating model that drives efficiency as you grow so you can scale when the time comes.

It’s much easier to have efficient processes in place and then grow versus growing too fast with a back office full of chaos and trying to bring order to that chaos after the fact.

Investing in brand awareness is a long-term asset, but you might not realize the benefit of it if you’re burning through cash and unable to keep operations afloat and inventory in stock.

What advice would you offer to a cannabis entrepreneur who is deciding between self-funding their business, taking out a loan, or finding outside investors?

I recommend being thoughtful about what kind of business the entrepreneur wants to build, how quickly they want to build it, and what partners they want to be accountable to as they grow.

More capital generally opens up possibilities to grow faster, but it also means making strategic decisions about the kind of business you want to run.

My advice to those entrepreneurs who aren’t sure yet is to solve for financial optionality: take advantage of the financial products that give your businesses more flexibility without giving away control.

If an entrepreneur is pursuing venture capital to help grow their business, how important is it to find the right investor, as opposed to any investor? How should you go about identifying good prospective investors?

I can talk for hours about the importance of finding the ‘right’ investor for your business because of how much of a force multiplier I have experienced here at Order.co.

Our investors share our vision for Order.co – to simplify how businesses buy – which means they are supportive but challenge us when they have to. They’re pioneers in SAAS+, go-to-market vanguards, and fintech experts.

So finding the right combination for your own business is, in itself, a competitive advantage.

What is the best way to introduce yourself to prospective investors, and how much detail should you include in your initial outreach?

Whenever talking to investors, I recommend being authentic about who you are and clear and concise about your business and vision.

What are some things to avoid, and/or red flags to watch out for in conversations with prospective investors?

I always recommend focusing on alignment when speaking to investors and ensuring a mutual fit.

What makes for a good pitch deck? And what is the most important part of the deck?

A pitch deck is a great way to introduce yourself and your business to investors, so the same rules apply: be authentic, clear, and concise.

Thank you, Matt, for sharing your insight and spending efficiency expertise! Visit Order.co to learn more or click here to request access to the company’s cannabis financing tool kit.

End

New Cannabis Drug Delivery Tech to Provide Cheaper Cannabinoid Vapor

11/14/2022

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Stillwater, MN, November 2022 — Vapor Cartridge Technology LLC, based in Stillwater Minnesota, has invented and patented a groundbreaking technology with the power to change the entire recreational cannabis industry.

Vapor Cartridge Technology LLC has invented and patented an FDA-approvable, environmentally friendly, and cost-effective process for extracting the essential oils and resins from botanical plants (e.g., cannabis) and an FDA-approvable device for delivering a pure and exact dose of the extracted oils/resins as a consistently reliable precise inhalable vapor.

It seeks to be the most cost-efficient manner of delivering cannabinoid vapors as measured by $/mg/ml of cannabinoids in the bloodstream. It seeks to be the only technology that can provide the dose control, formulation control, and purity assurance of inhaled botanical vapors required of an FDA approved drug.

“Once commercialized, the Vapor Cartridge Technology will quickly become the overwhelming preference of retail recreational adult users,” according to a spokesperson for the company.

Vapor Cartridge Technology LLC is currently seeking licensing opportunities for their new technology and have launched a data rich website (https://vaporcartridgetechnology.com) towards this objective. The website contains a detailed explanation of the science behind the technology, a competitive analysis, the benefits of the technology, the patent portfolio, potential licensees, and a way to contact the company.

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Study: Majority of Hemp Flower Purchased Online Exceeds Federal THC Limits

11/14/2022

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A study published last month by the National Institute of Standards and Technology and the National Institute of Justice found 49 of 53 samples of hemp flower products obtained through online vendors were incorrectly labeled and “technically fit the federal classification for marijuana.”

The study bought flower labeled as hemp from five online vendors and found that just two of the 34 products purchased from vendor one contained less than the 0.3% THC threshold, none of the eight samples from vendors two and three would be considered hemp under federal rules, along with just two of the 11 samples from vendors four and five.

The study notes that “of the inaccurately labeled samples, virtually all had total THC concentrations under 1 percent but above the legal threshold of 0.3 percent.”

“Although these results cannot be taken as indicative of the entire field of commercial hemp products, they validate the notion that at least some products that are marketed as hemp (and appear official and reliable from a scientific point of view) can be legally classified as marijuana. These products pose a particular challenge for labs attempting to quantify small amounts of THC, as well as consumers who may be unaware of what is contained in the product.” — “Study Reveals Inaccurate Labeling of Marijuana as Hemp,” Oct. 17, 2022

Each of the vendor websites indicated that “all products contain less than 0.3 percent THC” or “Products are lab tested to ensure their THC content is less than 0.3 percent.”

Hemp was legalized federally in 2018 under the Farm Bill and since then, the presence of THC in seized cannabis is no longer sufficient to classify it as a controlled substance under federal law. Most crime labs also do not have the capability to test for THC concentrations which has led law enforcement in some states that still outlaw cannabis to stop prosecuting simple possession cases as defendants can argue the products are hemp.

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Missouri Releases Adult-Use Cannabis Draft Rules While Officials Set Timeline

11/14/2022

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Missouri officials have released draft rules for the state’s upcoming adult-use cannabis industry, less than a week after voters approved the reforms. The publishing of the draft rules is the first step to rolling out the industry, which Department of Health and Senior Services spokeswoman Lisa Cox said could happen before February, the St. Louis Post-Dispatch reports.

Under the voter-backed measure, the state is required to take action within 60 days, making February 6 the date the state must approve conversion applications from current medical cannabis operators submitted on December 8.

Cox told the Post-Dispatch that officials expect to convert licenses “before the 60-day deadline, as soon as we have rules for comprehensive facilities filed.”

“We anticipate comprehensive dispensaries will be able to begin selling to adult use consumers as soon as their license is approved for conversion.” — Cox to the Post-Dispatch

Jack Cardetti, spokesperson for the Missouri Medical Cannabis Trade Association, told the Post-Dispatch that the timeline “likely means that Missouri will have one of the quickest and smoothest transitions to adult-use sales in the nation.”

Cox also indicated that the state will start accepting applications for adult personal cultivation “during or before the first week of January,” and microbusiness licenses “during or before the first week of September 2023.”

Voters approved the reforms by a 53%-to-47% margin. The state is accepting public comments on the draft rules until November 25.

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Minnesota Pro-Cannabis Party Loses Major Party Status

11/14/2022

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Minnesota’s Grassroots-Legalize Cannabis Party lost its major party status after it failed to have a statewide candidate garner 5% of the vote in the past two general elections, the Star Tribune reports. The 5% threshold is required for parties to maintain the major party status.

Grassroots-Legalize Cannabis Party candidates had run in last week’s election in the governor and state auditor races, but both drew less than 2% of the vote, the report says. Steve Patterson has sought the governorship on the party line, while Will Finn ran for auditor.

The other pro-cannabis party, Legal Marijuana Now, still has its major party status because its U.S. Senate candidate, Kevin O’Connor, received nearly 6% of the vote in 2020, allowing the party to maintain the designation for four years.

Grassroots–Legalize Cannabis Party Chairman Oliver Steinberg told the Star Tribune that the major party designation “is the worst thing that happened to the cannabis parties” because it opened up the party to having “bogus” candidates, often Republican-aligned, to run under the party’s banner.

In an October 29 update posted to the party’s website, Steinberg wrote that the party was “established in 1986” and “sabotaged in 2022” and that the party did not want people to vote for Patterson or Matt Huff, who ran for lieutenant governor.

“Patterson stated that his intention was to hijack the party’s nomination,” Steinberg wrote. “He has no background as a cannabis activist, has never supported or donated to the party, and refused an opportunity to let the Party’s endorsed candidate – a disabled military veteran – obtain a place on the ballot.”

According to a statement by the party in August, its endorsed candidate, Kevin “NeSe” Shores was kept off the ballot.

End

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