Search Results for "massachusetts"

Resistance Surfacing for Massachusetts Legalization Plan

3/08/2016

Activists from the Campaign to Regulate Marijuana Like Alcohol (CRMLA) clashed with legislators over the implications of cannabis legalization in a hearing held Monday at the Massachusetts State House. The discussion hinged on House Bill 3932, which aims to legalize and regulate the consumption, cultivation and retail of recreational marijuana.

HB 3932 was filed in response to a successful petition drive by CRMLA to see a voter referendum for the legalization of cannabis on this November’s ballot. As per Massachusetts state law, however, after any successful petition drive, lawmakers have a chance to review the initiative and the option of approving the issue outright.

Over the weekend, three major political players in Massachusetts — Gov. Charlie Baker, Attorney General Maura Healey, and Boston Mayor Martin Walsh — wrote in an op-ed for the Boston Globe that voters in the state should reject any proposals to legalize cannabis.

Dick Evans, Chairman for the CRMLA, said the opinion piece reflected bad science and outdated, unwarranted prohibitionist concerns.

“Let’s keep in mind a very simple fact that to oppose legalization is to embrace prohibition and vice versa. It’s a binary choice, one or the other,” Evans wrote in a statement. “If, like the governor, you’re against legalization, that means you’re against bringing the industry out of the shadows and subjecting it to regulation like nearly all other industries.”

According to Linda Noel, treasurer for the Massachusetts Cannabis Reform Coalition, “The problems we see from cannabis now are caused by cannabis prohibition — you’ve got the black market selling to underage people, you’ve got violence, you’ve money laundering — all of those things are due to the black market.”

End

Massachusetts Senators Going to Colorado This Week to Learn About Cannabis

1/11/2016

Members of the Massachusetts Senate Special Committee on Marijuana will travel to Colorado next week in order to learn firsthand about the state’s experience with legal recreational marijuana.

According to The Associated Press, Sen. Jason Lewis (D-Winchester) said that “we have recognized all along that the best way to really learn about the impact of legalizing marijuana is to spend time on the ground in the state that has the most experience with it, and that is Colorado.” Sen. Lewis chairs the special committee of 10 senators, 8 of whom plan to attend the Colorado visit.

The committee was formed last year in order to prepare for a possible 2016 proposition that would legalize recreational marijuana in the state. The Campaign to Regulate Marijuana Like Alcohol has collected enough signatures to get the proposal on the ballot. The proposal would allow adults 21 and older to possess up to an ounce of cannabis, which would be subject to a 3.75 percent excises tax on top of Massachusetts’s 6.25 percent sales tax.

The senators plan to meet with Colorado state legislators, regulators and law enforcement officials. “We don’t want to repeat the mistakes and the challenges we had in implementing the medical marijuana question,” said Lewis in reference to bureaucratic delays that affected the opening of Massachusetts dispensaries.

Gov. Charlie Baker, a Republican, and Attorney General Maura Healey, a Democrat, have both come out against the proposed ballot measure; Baker said he is “unalterably opposed” to marijuana legalization.

End

Massachusetts Medical Cannabis Market Taking Off

12/31/2015

Patient demand for medical marijuana in Massachusetts has increased almost twelve-fold during the program’s first year.

Statistics from the Department of Public Health show that the number of registered patients went up from 1,423 in January of 2015 to 16,510 at the end of November.

The state’s first dispensary opened in June, more than two years after voters approved a medical marijuana ballot proposal. The opening of the dispensary, housed in a former Salem factory, was met with a long line of customers.

“I’m a law-abiding citizen, two kids, daycare provider, no criminal record,” said Wendy Atwood, of Salem. “So I feel like I’m a good example of someone who can use [cannabis] responsibly.”

Three more dispensaries have opened since June, and have had trouble keeping up with demand. However, analysts say 2015 was a year of slow growth: the expected mature market for medical marijuana in the state should comprise more than 150,000 patients. Kris Kane of 4Front Advisors says this market is still a few years away. Kane is currently working with companies that aim to open more than 20 shops in the state.

He expects demand for legal marijuana to increase as more shops open: many buyers are still risking the $100 possession fine and buying from illegal sources before shops open near them.

Photo Credit: Tim Sackton

End

Bay State Repeal Calls Off 2016 Ballot Measure, Massachusetts Legalization Issues Are Simplified

12/04/2015

Only one of two proposed marijuana measures will make it to the 2016 ballot in Massachusetts.

The Committee To Regulate Alcohol Like Marijuana (CRMLA) has gathered the number of signatures it needs to get its proposal on the ballot, according to a statement made Tuesday. The group has submitted the list of signatures to the secretary of state.

In a statement, CRMLA campaign manager Will Luzier said that “People can see that our current prohibition policy isn’t working, and they’re taking action to replace it with a more sensible system.”

In contrast, Bay State Repeal, a group headed by longtime local activists, stated Wednesday that it had not achieved the required number of signatures.

The two groups’ proposals differed greatly. CRMLA has proposed a heavily-regulated system that would result in a new state commission, as well as an excise tax on cannabis.

Bay State Repeal’s approach would have resulted in a much less restrictive system. The majority of existing retailers would have been allowed to sell cannabis, and the system would have been managed by existing state agencies.

Steve Epstein, who spoke on behalf of the group, said that although “we didn’t make it,” he would “use every skill in [his] power” to oppose the regulations proposed by CRMLA, and said that the proposal supports “crony capitalism.”

CRMLA spokesperson Jim Borghesani said in a statement:

“Though our approach differs from [Bay State Repeal]’s, we hope that all who supported BSR will join with us to end the 100-year-long hypocrisy of punishing adults for choosing a substance that is less harmful than alcohol.”

Even if CRMLA’s measure does make it to the ballot, it will face opposition from elected officials, including Boston Mayor Marty Walsh and Gov. Charlie Baker, who have publicly opposed any kind of marijuana legalization.

Photo Credit: Massachusetts Office of Travel and Tourism

End

Competing Legalization Campaigns in Massachusetts Face Petition Signatures Deadline

12/01/2015

The two Massachusetts campaigns that seek to end cannabis prohibition are facing a petition deadline tomorrow for their proposals: 64,750 valid signatures are required to put their proposals in front of the state legislature, which may then choose to pass the law outright. If the legislature fails to act, an additional 10,792 signatures will be needed by July to get the proposals in front of voters during the November 2016 election.

The Campaign to Regulate Marijuana Like Alcohol, an advocacy group backed by the Washington-D.C. based Marijuana Policy Project, has already raised more than enough signatures. Today, campaign leaders are submitting their 103,000 petition signatures to the Elections Division of the Secretary of the Commonwealth.

Meanwhile, the Bay State Repeal group is a grassroots campaign that has been endorsed in an editorial by the Boston Globe and by the Massachusetts chapter of the National Organization for the Reform of Marijuana Laws. It remains uncertain whether Bay State Repeal has secured enough signatures.

One of many differences between the campaigns is their proposed taxation rates: BSR is calling for a 6.25% state tax with no option for a local tax, while the CRMLA’s proposal includes a 10% state tax and the option for up to 2% in local taxes. The BSR proposal also includes an expunging of old marijuana offense records by the state’s Executive Branch.

For more info, visit the campaign websites above or read more here.

Photo Credit: KOMUnews

End

Massachusetts Groups File Petitions For Legalization Ballot Measures

8/11/2015

Two marijuana advocacy groups in Massachusetts filed petitions Wednesday that would put recreational marijuana legalization measures on the 2016 ballot.

The two groups’ proposals represent starkly different views on how marijuana legalization should be implemented. The proposal by the Campaign to Regulate Marijuana Like Alcohol in Massachusetts (CRMLA) would create a “Cannabis Control Commission” that would institute regulations and taxes. The other group, Bay State Repeal, submitted a proposal that focuses on individual liberties and would not significantly regulate or tax marijuana production and sale.

CRMLA is funded by the Marijuana Policy Project, which helped pass Colorado’s legalization program. CRMLA’s proposal would institute a 3.75% excise tax on top of the state’s 6.25% sales tax, and would permit cities and towns to impose an additional 2% local tax. Adults would be allowed to grow up to six plants for personal use, and medical marijuana dispensaries would have a head start on becoming recreational operations.

The Bay State Repeal group is purportedly run only by local activists. Its measure would not levy taxes beyond the state sales tax, and would not limit the number of plants individuals could have.

Steve Epstein, a lawyer and spokesman for Bay State Repeal, argued that CRMLA’s proposed taxation scheme, which could add up to a 12% sales tax on marijuana, would bolster the black market.

The ballot proposals will be reviewed by Attorney General Maura Healey. If approved, the groups can then begin collecting signatures from registered voters.

Source:

https://www.bostonglobe.com/metro/2015/08/04/two-groups-push-marijuana-legalization-measures/p0R7ubyFtegg2HiLMI9PXL/story.html

Photo Credit: Jim Bowen

End

Massachusetts Medical Marijuana Industry Attracts New Wave of Entrepreneurs

7/03/2015

Massachusetts’ first medical cannabis dispensary opened last week in Salem, and now more than 50 dispensary license applications have been submitted to state regulators by companies eager to claim their own space in the nascent industry.

Massachusetts began its ill-fated licensing process two years ago, but a variety of complications — from political favoritism, to executives with controversial pasts, to the discovery of questionable financial practices of several involved companies — resulted in more than two dozen lawsuits. Ultimately, 15 dispensary licenses were issued, but the program’s roll-out was delayed until last week.

Now, the state is accepting more applications, and some cannabis entrepreneurs — many of whom lost thousands of dollars vying for one of the original licenses — are scrambling at the opportunity.

The licensing process has been revamped under Governor Charlie Baker. Now, instead of pitting applications against each other using an arbitrary scoring method to determine winners, each application is to be judged for its own merits. Applications will be considered in the order they are received.

Sources:

https://www.bostonglobe.com/metro/2015/06/30/more-than-applications-filed-for-new-batch-medical-marijuana-licenses/

Photo Credit: Werner Kunz

End

Massachusetts First MMJ Dispensary Opens for Business

6/25/2015

Three years after Massachusetts voters overwhelmingly approved medical cannabis use, the state’s first dispensary has finally opened. After receiving a final approval from state regulators, Alternative Therapies Group made the following announcement on their website:

“ATG is the first Registered Marijuana Dispensary to receive a Final Certificate of Registration in the state of Massachusetts. Our Salem, MA dispensary is scheduled to begin serving registered patients Wednesday, June 24th – by appointment only. ATG intends to offer a safe and enjoyable experience for our patients.”

During the launch, the ATG will only be offering medical marijuana in its flower form. A company statement, however, confirms that efforts “to include more strains and MIPs [marijuana-infused products], such as tinctures, baked goods, topical creams, salves and vaporizer pens,” are underway.

The dispensary’s cannabis is grown entirely in an off-site location that is off-limits to the public.

Massachusetts voters approved medical marijuana treatment for several debilitative conditions — including cancer, HIV, multiple sclerosis and Parkinson’s disease — in 2012.

Meanwhile, two marijuana advocacy groups have separately announced they will put the question of full legalization to Massachusetts voters in 2016.

Sources:

http://www.wcvb.com/news/1st-medical-marijuana-dispensary-in-massachusetts-opening/33745928

http://bostinno.streetwise.co/2015/06/24/mass-medical-marijuana-dispensary-to-open-wed-june-24-alternative-therapies-group/

Photo Credit: Martijn

End

Massachusetts Dispensary Licensing Snafu Rooted In Early Mistakes, Report Finds

12/30/2014

Massachusetts voters overwhelmingly approved medical marijuana in 2012, and it was originally believed dispensaries would open in the summer of 2014. Now, after many months of delay and dozens of lawsuits against the state health department, the Boston Globe has released a report that identifies how things went wrong during the medical marijuana program’s launch.

According to the report, the whole implementation process was, “hobbled by too little time, too many conflicts of interest, and questionable work from highly paid contractors.”

“Massachusetts underestimated the time commitment it would take, and now it’s taking more time because they have had to backtrack,” explains Todd Brown, vice chairman of the Department of Pharmacy and Health Systems Sciences at Northeastern University. Brown served on a committee that was appointed by the state health department to recommend recipients for provisional dispensary licenses.

In June, that committee had to backpedal on nearly half the applications they had initially selected, citing issues that ranged from the companies’ financial structures to the way their background checks had been mishandled during the screening process.

The state originally contracted two different companies to get things underway. ICF International was hired to review and provide consulting on 100 marijuana business applications. Creative Services Inc. was hired to background check the more than 600 people who were involved with said businesses. Neither company, however, was tasked with actually verifying claims made by hopeful marijuana businesses in their applications.

Problems arose when locals felt their enthusiasm for the industry — or lack thereof — had been misrepresented in certain applications. Additionally, one couple who had their Colorado dispensary license revoked due to violations were not initially detected during the Massachusetts background checking process.

With public scrutiny growing, the two companies originally contracted to do the job had their contracts extended to address the growing concerns. The state of Massachusetts has now spent more than $1 million on its flawed system, and more money is yet owed.

Meanwhile, Massachusetts is one of many states gearing up for a 2016 push for the legalization of recreational marijuana.

Sources:

http://www.bostonglobe.com/metro/massachusetts/2014/12/27/state-effort-license-medical-marijuana-dispensaries-went-off-rails-from-start/9UfRwaG7TpxtvTspkSFDkI/story.html

Photo Credit: Navaneeth KN

End

Brief: Massachusetts Voters Ready to Approve Cannabis Legalization

11/08/2014

According to this year’s Public Policy Questions in Massachusetts, voters in that state are ready to approve the legalization of recreational marijuana. The non-binding inquiries were featured on this year’s midterm ballots, and an overwhelming majority of votes were cast in support of marijuana reform.

Two different questions were posed by two different organizations, the Drug Policy Forum of Massachusetts and Bay State Repeal.

Presented in eight different counties, the DPFMA question — “Shall the State Representative from this district be instructed to vote in favor of legislation that would allow the state to regulate and tax marijuana in the same manner as alcohol?” — received between 69 and 74 percent approval.

Meanwhile, the Bay State Repeal questions detailed a potential regulatory system — similar to business regulations in the agricultural industry — for growing, selling, and possessing legalized cannabis. Three variations of the concept were posed to voters across six different counties, and approval rates ranged from 54 to 64 percent.

“PPQs are an excellent measure of voter sentiment,” said DPFMA Director John Leonard. “They represent actual votes by actual voters, not some pollster’s ideas of how citizens are likely to vote.”

In Massachusetts, the PPQ has served marijuana activists particularly well: voters signaled strong support for marijuana decriminalization in 2008 and medical marijuana in 2012, and the state has since implemented legislation to approve both drug policy reforms.

Sources:

http://www.thedailychronic.net/2014/38162/ppq-results-massachusetts-voters-are-ready-for-marijuana-legalization/

Photo Credit: Emmanuel Huybrechts

End

Kamala Harris Calls Current Federal Cannabis Policy ‘Absurd’

3/17/2024

Vice President Kamala Harris (D) said on Friday that it’s “absurd” and “patently unfair” to rank cannabis above fentanyl and alongside heroin at Schedule I under the Controlled Substances Act (CSA), according to a CNN report.

The vice president made the statement during a roundtable discussion covering the Biden Administration’s latest cannabis reform efforts. Moderated by musician and philanthropist Fat Joe, the discussion included Kentucky Gov. Andy Beshear (D) — who last year announced the pardoning of low-level cannabis possession charges — and a group of individuals who have received cannabis pardons.

“Marijuana is considered as dangerous as heroin and more dangerous than fentanyl, which is absurd, not to mention patently unfair. I’m sure DEA is working as quickly as possible and will continue to do so and we look forward to the product of their work.” — Harris, during the roundtable discussion

Harris, who started in politics as a prosecutor in California, also said that the criminal justice system has “failed” on its promise of “equal justice under the law.”

“And I say that with full knowledge of how this system has worked, including my experience as a prosecutor,” she said in the report.

The Department of Health and Human Services (HHS) last year recommended the federal government move cannabis from Schedule I to Schedule III. The federal Drug Enforcement Administration (DEA) has since claimed to have the final say on any scheduling action, and some insiders have reported pushback against the rescheduling plan from the federal enforcement agency.

In the meantime, President Joe Biden (D) has pardoned federal cannabis possession charges but those are just a drop in the bucket of overall cannabis convictions in the U.S. The president, however, did call on state governors to issue sweeping cannabis pardons.

Massachusetts Gov. Maura Healey (D) said last week she would pardon all of the state’s misdemeanor cannabis possession convictions.

End

Rhode Island Gov. Wants to Give Cannabis Industry 280E Tax Workaround

2/21/2024

Rhode Island Gov. Dan McKee (D) has proposed decoupling state and federal taxes for cannabis industry operators as a partial workaround for IRS code 280E, Marijuana Moment reports.

The cannabis industry pays an exorbitant amount of taxes as a result of 280E, which prohibits companies from taking normal business tax deductions if their work is tied to a federally prohibited substance (cannabis is still declared Schedule I under the federal Controlled Substances Act).

The governor included the tax relief language as part of his budget proposal for the fiscal year 2025, stating that “Rhode Island would join Massachusetts and Connecticut, and at least 10 other states, in decoupling from this federal policy,” and estimating that the move would save cannabis operators $824,642 in the fiscal year 2025 and $1.7 million in the fiscal year 2026.

The tax relief language is supported by Cannabis Control Commission (CCC) Chair Kim Ahern, who attended the House Finance Committee meeting last week addressing the governor’s budget proposal, the report said. Lawmakers have not yet voted on the budget proposal.

It’s possible the cannabis industry could soon find tax relief at the federal level if the Biden Administration were to either reschedule cannabis from Schedule I to Schedule III — as was recommended last year by the U.S. Department of Health and Human Services — or remove cannabis from the federal drug schedule entirely, a move that was recently suggested by a group of Senate Democrats.

Rhode Island passed its cannabis legalization law in 2022 and the state’s licensed cannabis dispensaries earned more than $100 million in combined medical and adult-use sales during their first full year of adult-use operations.

End

MedMen Exiting Arizona and Nevada Cannabis Markets

12/21/2023

MedMen Enterprises Inc., a Florida-based multistate cannabis operator (MSO), announced on Wednesday that it is exiting the Arizona and Nevada state markets and will sell off its assets to Mint Cannabis, an Arizona-based MSO.

The sale covers MedMen’s wholly-owned operating subsidiary in Arizona and its two dispensaries located in Clark County, Nevada, according to a press release. The company said that the transactions are part of its “strategic review and evaluation of divestiture opportunities of its non-core assets,” and will be carried out “subject to customary closing conditions, including … the receipt of applicable regulatory approvals.”

MedMen sold off its Florida-based operations last year following the previous departure of its embattled co-founders over unpaid loans.

“MedMen is pleased with the outcome of our strategic review and has made good progress in our restructuring efforts. These transactions will bolster liquidity in the short term, reduce liabilities, and enable the Company to focus on operating efficiencies and executing our long-term asset-light growth strategy in our core markets.” – Ellen Deutsch Harrison, MedMen CEO, in a statement

Mint Cannabis co-founder and CEO Eivan Shahara said the sale will “expand our portfolio of flagship dispensaries” in Arizona and continue to bolster the company’s vertical presence in Nevada.

Following the sale, MedMen’s remaining operations will include the California, Illinois, Massachusetts, and New York adult-use cannabis markets.

The company had previously considered selling off its New York-based assets to Ascend Wellness but the deal ultimately fell through last August.

End

Trulieve Awarded Alabama’s Only “Minority-Owned” Medical Cannabis License

12/14/2023

The Alabama Medical Cannabis Commission (AMCC) has awarded integrated licenses to five companies to initiate the state’s medical marijuana industry, as reported by news outlet AL.com. Out of 33 applicants, Trulieve Alabama, Inc. was recognized as the only “minority-owned business” to receive a license.

This decision is part of the implementation of the medical marijuana law passed in Alabama in 2021. The law mandated that at least one of the five licenses be allocated to a company that is at least 51% minority-owned, a requirement that the agency determined was met by Trulieve Alabama.

This development highlights an issue that many entrepreneurs and activists in the cannabis industry have pointed out: when larger corporate entities partner with minority operators to secure licenses under state-level “social equity” provisions. Trulieve–a publicly traded company–was originally founded in Florida and has since expanded into other states, with no shortage of controversy along the way, including the death of employee Lorna McMurrey at one of their Massachusetts locations in January 2022.

The other companies awarded licenses by the AMCC are Sustainable Alabama, LLC; Wagon Trail Med-Serv LLC; Flowerwood Medical Cannabis, LLC; and Specialty Medical Products of Alabama, LLC. These integrated licensees will undertake the cultivation, processing, transportation, and dispensing of medical cannabis.

While the licenses have been awarded, they are scheduled to be issued on January 9, following the completion of necessary procedures including license fee collection and site inspections by the AMCC.

The licensing process has undergone several rounds due to previous procedural issues and litigation. This current awarding is the third attempt by the AMCC, which has made adjustments to its selection process, including conducting open meetings and revising evaluation methods.

Each licensee, including Trulieve Alabama, will be subject to an on-site inspection to ensure facility compliance with state standards. The AMCC has set a provisional timeline, aiming for the availability of medical cannabis products by spring 2024.

The commission’s awarding of licenses also enables physicians to begin the process of certifying patients for medical cannabis use. Patients eligible for medical cannabis must meet specific qualifying conditions as outlined in the legislation. The products permitted under the law include various forms such as gummies, tablets, capsules, tinctures, patches, oils, and others.

End

New Hampshire Gov. Wants Maximum of 15 Cannabis Retailers & Cannabis Lobbying Ban

12/01/2023

New Hampshire Gov. Chris Sununu (R) on Monday introduced two apparent non-negotiables to any adult-use cannabis framework in the state: a 15-store cap and a ban on lobbying and political contributions by any cannabis licensee, the New Hampshire Bulletin reports. The demands came as the state commission studying a state-run model – similar to the state’s liquor model – was preparing to wrap up its duties.

David Mara, Sununu’s adviser on addiction and behavioral health, told the Bulletin that the administration is “adamant about that number, 15” as they “don’t want to see a proliferation of what’s happening in other states.”

“The worry here is that we don’t want to create a big tobacco atmosphere here in New Hampshire. We don’t want it to be where a lot of money is being thrown around.” — Mara to the Bulletin

Initially, the commission had discussed capping the number of adult-use dispensaries to the number of liquor stores in the state, of which there are 67.

Last April, the state House approved an adult-use legalization bill but the Senate voted down the legislation the following month as Sununu pushed back on the reforms, stating that he would prefer a state control model.

Mara said that in the future lawmakers could change the number of stores depending on “how things progress.”

A representative from Sununu’s office told the Bulletin that “The governor is open to discussing a franchisee-based system, but the success of such a model is in the details. The governor has been clear that any system meet his outlined framework – or be met with a veto.”

Sununu has generally opposed broad cannabis legalization in the state but said in May that the reforms are “probably inevitable in some way or form.” He said the state-run model would offer an “amazing tool to control location, to control where it is, to control how it’s marketed, how it’s distributed, keeping it away from kids.” He added that he wants to avoid what he describes as the “Marijuana Miles” in Massachusetts and Maine, which he says are stretches of “pot shop, after pot shop, after pot shop” which “completely changes the fabric of the town.”

End

Cannabis Companies Sue U.S. Attorney General Over Federal Cannabis Laws

10/27/2023

A group of Massachusetts-based cannabis companies are suing U.S. Attorney General Merrick Garland over federal cannabis laws, arguing the laws infringe on state powers, harms their business, and threatens the businesses’ safety because the laws force them to operate entirely in cash.

The plaintiffs include Canna Provisions, Inc., Wiseacre Farm, Inc., Verano Holdings Corp., and Gyasi Sellers, an individual who operates a cannabis courier business.

The lawsuit points to a 2005 Supreme Court decision (Gonzales v. Raich) that found because Congress intended to “eradicate” cannabis from interstate commerce, including both economic and noneconomic uses of cannabis, the federal government had a rational and therefore lawful purpose in intruding on the states’ own cannabis regulation; however, the lawsuit contends that “in the decades since that decision, Congress and the Executive Branch have abandoned any intent to ‘eradicate’ marijuana.”

“Numerous states have also implemented programs for regulated marijuana that is not fungible with, and is distinguishable from, illicit interstate marijuana. Despite these changes, the federal criminal prohibition on intrastate marijuana remains in place, an unjustified vestige of a long-abandoned policy. This unjustified intrusion of federal power harms Plaintiffs, threatens the communities they serve, and lacks any rational purpose.” — Canna Provisions, Inc., GYASI Sellers, Wiseacre Farm, Inc., Verano Holdings Corp., v. Merrick Garland

The plaintiffs allege their businesses have been harmed by federal cannabis prohibition. Sellers says his businesses are unable to obtain Small Business Association (SBA) loans because the agency deems cannabis businesses are “ineligible for SBA assistance” regardless of whether they comply with state law. Canna Provisions contends it has been barred from MassHire, one of the state’s career services organizations, from posting jobs or running workshops and that company employees and officers have had personal bank accounts shut down or mortgages declined because they work with cannabis. Wiseacre Farm claims it was unable to lease lands from a willing Massachusetts farmer because the farmer feared losing federal agriculture grant money.

“All of these harms, along with numerous other harms to Plaintiffs alleged herein, are caused by the federal government’s unconstitutional ban on cultivating, manufacturing, distributing, or possessing intrastate marijuana,” the lawsuit states.

The lawsuit further contends that the federal ban on cannabis results in punitive taxation and eliminates state-regulated cannabis businesses’ rights under federal law because companies are not allowed to claim deductions or credits on federal taxes and are unable to trademark their products.

The plaintiffs seek to have the Controlled Substances Act, as it relates to cannabis, ruled unconstitutional and prohibit the federal government, namely the attorney general, from enforcing the law “in a manner that interferes with the intrastate cultivation, manufacture, possession, and distribution” of cannabis under state laws.

End

Rhode Island Adult-Use Cannabis Sales Hit Monthly High of $7.11M in September

10/23/2023

Adult-use cannabis sales in Rhode Island reached a new monthly sales record in September, totaling $7.11 million, NBC 10 News reports. Adult-use sales totals are now back on track to meet the state’s annual revenue projections of $76 million for fiscal year 2023 after a slow start earlier in the year.

When the adult-use cannabis market launched in the state in December 2022, the state had imposed an advertising ban on cannabis dispensaries; however, that ban was lifted in June and led to an 11% increase in adult-use cannabis sales that month, the report says.

Cannabis Control Commission Chair Kim Ahern told NBC 10 News that while she believes allowing advertising is playing a role in the sales increase, she also attributes the growth to “getting the general message out” about a safe and regulated market.

Rhode Island regulators have yet to award 24 retail licenses and once those licenses are active, officials expect sales will increase. In all, the state will allow a total of 33 adult-use cannabis licensees, which both officials and business owners hope will prevent the industry oversaturation that’s occurred in neighboring Massachusetts. Officials plan to begin issuing those licenses next year.

End

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

10/13/2023

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

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

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

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

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

End

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

9/29/2023

A bipartisan group of more than 20 attorneys general on Tuesday sent a letter to Congressional leadership urging them to pass the Secure and Fair Enforcement Regulation (SAFER) Banking Act. The bill passed the Senate Committee on Banking, Housing and Urban Affairs on Wednesday.

In the letter, the attorneys general note that current federal law, which classifies cannabis as a Schedule I drug, presents “a risk of criminal and civil liability to banks providing services to state-licensed cannabis dispensaries and related businesses” which significantly inhibits “the ability of financial institutions to provide services to regulated cannabis operators and leaves those businesses struggling to find financing.”

“The lack of access to banking services creates both barriers to entry into the industry and instability for existing businesses. Recently, Mastercard announced that it will no longer allow its cardholders to use their bank cards to purchase cannabis, cutting off a key revenue stream and making it harder for customers and businesses alike,” the letter states. “Further, where the public perceives that regulated businesses can only conduct business in cash, employees and customers are at greater risk of violent crime in pursuit of that cash. Several jurisdictions have seen a spike in robberies of cannabis businesses, some of which have resulted in deaths.”

The signatories add that passage of the law “will enable the evolution of a banking system for legalized cannabis-related businesses that is both responsive and effective in meeting the demands of our economy.”

The letter is signed by the attorneys general of Arizona, California, Colorado, Connecticut, Georgia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New Mexico, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, Vermont, Washington state, and Washington, D.C.

End

California Sues Multiple Hemp Companies Claiming State Law Violations

9/08/2023

California is suing several hemp brands throughout the U.S. claiming violations of the state’s Proposition 65 rules, which require products “known to the State to cause cancer or reproductive toxicity” to carry a “clear and reasonable” warning label. Although the 2018 Farm Bill effectively legalized hemp containing 0.3% THC or less at the federal level, in California’s legal system, delta-9 THC is considered a chemical “known to cause harm to the developing fetus” and having any amount present makes a product subject to the Prop 65 rules.

The state is also accusing the businesses of unfair practices for selling “inhalable hemp products,” which are prohibited under a 2021 law clarifying the state’s hemp rules. The lawsuit claims the companies sold inhalable hemp products through their websites to customers in California, violating state law.

“This complaint seeks to remedy the defendants’ illegal sale of inhalable hemp products and their failure to protect consumers from highly toxic chemicals that are present in all commercial hemp products and their failure to warn consumers about the risks these products pose,” the lawsuit states.

The companies targeted by the lawsuit include:

Oregon-based G.E.T. Agriculture LTD
Nevada-based Hempacco Company, Inc.
California-based Cheef Holdings
Wyoming-based IHF Online LLC
New Mexico-based Eagle Moon Farm, LLC and EMH Wholesale
Massachusetts-based Berkshire CBD
Vermont-based Berkshire Farm Collective

In a conversation with Ganjapreneur, CEO of Hempacco Company, Inc. Sandro Piancone stated that the company does not sell products to California consumers and that the company was in full compliance with Prop 65.

The other brands named in the suit did not immediately respond to a request for comment but this article will be updated if and when they do. The companies face potential penalties of up to $1,000 for each sales violation, $2,500 per day for each violation of the Prop. 65 Warning law, and $2,500 for each violation of the state’s unfair practices law.

The lawsuit was filed on August 31 in the Superior Court of Alameda County. To view a copy of the filing, click here.

End

California Lawmakers Give Final Approval to Psychedelic Plant and Fungi Decriminalization Bill

9/08/2023

California lawmakers on Thursday gave final approval to a bill to decriminalize personal possession and use of psilocybin mushrooms and several plant-based psychedelics including DMT and mescaline for adults 21-and-older. The measure passed 21-3-6 and moves next to Gov. Gavin Newsom (D) for his signature.

The legislation also requires the California Health and Human Services Agency to convene a workgroup to study and make recommendations on the establishment of a framework governing therapeutic use, including facilitated or supported use, of the substances. The bill requires the workgroup to send a report with its recommendations to the legislature on or before January 1, 2025, according to the bill text.

Two other states, Oregon and Colorado, have also reformed state laws related to possession of psychedelic plants. In November 2022, Colorado voters approved a ballot question to decriminalize personal possession of psychedelic plants and fungi and establish a regulated therapy system to provide people with therapeutic access to the substances.

In 2020, Oregon voters approved a ballot question to decriminalize possession of all drugs, including psychedelics and another to establish a regulated psilocybin therapy system.

In 2020, Washington, D.C. voters approved a measure to decriminalize and deprioritize the possession and use of psychedelic plants and fungi with 76% voter approval.

The City Councils of Oakland, Santa Cruz, Cruz and San Francisco have already passed resolutions deprioritizing the enforcement of the possession and use psychedelic plants and fungi, effectively decriminalizing in those cities.

Since June 2019, the cities of Ann Arbor, Michigan, and Somerville and Cambridge, Massachusetts have each decriminalized the possession and use of psychedelic plants and fungi at the local level.

End

Understanding Insurance for Cannabis Operators: Nuances and Trends

9/06/2023

This guest editorial was contributed by Keith Signoriello, the co-owner and principal of C&S Insurance.

As legalization efforts gain momentum worldwide, the cannabis industry has experienced rapid growth and shows no signs of slowing down. New opportunities have emerged for entrepreneurs and investors in the cannabis industry. However, amidst the excitement, a crucial factor toward long-term success is often overlooked — insurance.

Just like different strains of marijuana, cannabis insurance is nuanced. Whether a business is cultivating, distributing, manufacturing products, or applying to become a registered dispensary, being prepared to face a diverse array of challenges is crucial. One of the best ways to protect a business is with a specialized insurance solution that can swiftly adapt to increases in demand and new regulations while effectively mitigating the risk of crop loss, product liability, theft, and cyber-attacks.

Each business has unique operations and risk profiles, which means the future of cannabis insurance will not be a one-size-fits-all solution. From industry changes to emerging trends, understanding what lies ahead and customizing a comprehensive policy will be key to helping businesses stay ahead of the curve.

Here are important coverages to consider:

Product Liability & Product Recall Coverage
Cannabis and hemp, much like food and alcoholic beverages, are consumer-based products that can cause injury, sickness, or worse. This coverage protects business owners against claims of defective or harmful products.

Professional Liability Coverage
Cannabis professionals, particularly those in healthcare, dispensaries, and labs, can be liable for advice that leads to a negative outcome. Also known as Errors & Omissions Insurance, this coverage is often excluded from standard medical malpractice policies but is essential in shielding against such risks.

Workers’ Compensation
Required by certain states, workers’ comp ensures that employees are protected in case of injury or job-related illness.

Commercial Umbrella Coverage
This coverage extends beyond the realm of those previously mentioned, helping protect against additional driving-related risks that come with product delivery.

Commercial Property Insurance
Typically bundled into a broader program, this type of coverage is essential to a comprehensive business plan and comes with significant variables such as policy limits, named and excluded perils, and claims made versus occurrence.

Commercial Auto Insurance
Generally required by businesses that use vehicles, this type of coverage protects against losses involving cars, trucks, vans, and other vehicles utilized in business operations.

Business Interruption & Business Income Insurance
While often used interchangeably, these coverages offer different forms of protection. Business Interruption coverage is designed to cover expenses during a temporary shutdown. Business Income Insurance covers lost earnings if a business is forced to close due to a covered peril.

Cyber Coverage
With the FBI reporting 4,000 daily cyber-attacks, this coverage helps protect you from breaches in sensitive employee, product, and client data — which is especially important for businesses with access to clients’ medical records.

Despite politicians like Senate Majority Leader Chuck Schumer working to decriminalize marijuana, regulatory scrutiny continues to face the industry at an all-time high. It’s important to know that many standard business insurance policies don’t protect companies from cannabis industry-specific risks. Working with specialized cannabis insurance agents can help navigate local approval processes and ensure policies evolve to address internal and industry-level changes and trends.

For example, the global movement toward decriminalization has already increased curiosity and engagement, fostering a growing user base of cannabis enthusiasts and inspiring diverse emerging trends. Cannabis’ acceptance as a legitimate medicine, growing popularity in cannabis-driven tourism, and the influx of innovative strains and products are already paving the way for a future defined by growth.

Legislative milestones such as the SAFE Banking Act of 2021 and insurance policies tailored to different sectors are a testament to the cannabis industry’s evolution and promise. As widespread acceptance continues to unlock new potential, adequate protective measures will become increasingly vital. By safeguarding ventures from the complexities and challenges presented by this expanding market, these measures will empower businesses to solidify their influence on the global economy for years to come.

End

Big Plan Holdings Partners With Tennessee-Based Evelyn Capital In Strategic Acquisition Of Ascend Wellness Holdings’ Location In Monaca, Pennsylvania

8/28/2023

Nashville, Tennessee, August 23rd, 2023 – Big Plan Holdings (BPH), a diversified family holding company with cross-sector investments in cannabis, real estate, music, entertainment, professional sports, and hospitality, has announced a strategic partnership with Tennessee-based Evelyn Capital to acquire the 1.25 acre, Monaca, Pennsylvania ‘Ascend Wellness Holdings’ AWH – (CSE;AWWH.U;OTCQX;AAWF) vertically integrated medical cannabis retail operation.

The acquisition expands upon the regional footprint and suite of services of Big Plan Holdings (BPH) in partnership with one of the nation’s leading multistate operators (‘MSOs’), publicly traded on the Canadian Stock Exchange.

In commenting on the acquisition of the tenant retail building located in Monaca, Pennsylvania, totaling $3.25 million, Josh Joseph, Co-Founder and CEO of Big Plan Holdings, stated that, “We are pleased to partner with fellow Tennessee-based and entrepreneurial real estate and investment firm, Evelyn Capital, in this exciting acquisition in Pennsylvania, further expanding our Northeast regional push and doing so with such an impactful brand as Ascend Wellness Holdings. AWH is tactically positioned to continue its dynamic trajectory in the cannabis space; a vertically-integrated operator with a footprint in seven of the most attractive states in the country for the industry. They are one of the stronger operators in the industry and BPH has long been a strong supporter of AWH and their management team.”

Founded in 2018 and presently hosting assets in Illinois, Michigan, Maryland, Ohio, Massachusetts, New Jersey and indeed Pennsylvania, Ascend Wellness Holdings owns and operates state of the art cultivation facilities, grows award-winning strains, and produces a curated selection of cannabis products.

Taylor Preston, Principal at Evelyn Capital, added that, “We share the enthusiasm of our partners at Big Plan Holdings in the announcement of this strategic acquisition, executed with a significantly increased cap rate, in large part due to BPH’s longstanding relationship with Ascend Wellness Holdings, but one example of the conducive environments for growth which BPH creates for their partners.”

The timing of this announcement is fortuitous; on Thursday, August 17th, 2023, five U.S. State Senators introduced Senate Bill 846, bipartisan legislation aiming to legalize the recreational use of cannabis for Pennsylvanians 21 years of age and older.

Eric Russell, Chief Investment Officer (CIO) at Big Plan Holdings, added that, “We are pleased to bring our experience and resources at this timely juncture to Pennsylvania and on the sidelines of the liberalization of the state’s marketplace. With combined commercial real estate (CRE), development and transactions totaling $2.5 billion from inception to present date, with transaction locations in upwards of 40+ states, our success lies in our vigilance and versatility – in seeking out mutually beneficial partnerships that allow for greater market penetration opportunities, service delivery, and sustainable business growth.”

About Big Plan Holdings

Big Plan Holdings (BPH) is a Nashville, Tennessee-based family-office, directed by Josh, Tara, Sydni, and Sophie Joseph, with diversified investments in cannabis, real estate, music, entertainment, professional sports, fashion, and hospitality, among myriad strategic investments across the United States and internationally.

BPH also hosts a philanthropic family foundation, The Joseph Family Foundation, with several different touch points of thematic, statewide, national, and global focus.

For more information, please visit http://bigplanholdings.com.

End

Get the daily briefing