MjLink Cannabis Business News and Press

California’s Department of Cannabis Control (DCC) closed public comment Aug. 2 on a regulatory package aimed at resolving the issue of inaccurate cannabis lab test results.

But there’s a problem with the DCC’s approach, say California cannabis lab managers.

At least six commenters in an Aug. 1 public hearing on the package stated that the issues with fraudulent lab tests will not be addressed by the proposed regulations. Some said the regulations will hurt the industry and consumers if labs are required to spend time and money to comply with new regulations while potency inflation continues.

The DCC issued the proposed regulations following the passage of California Senate Bill 544, which requires the agency “on or before January 1, 2023, to establish one or more standardized cannabinoids test methods to be used by all testing laboratories.” The proposed regulations outline that cannabis testing labs must use high-performance liquid chromatography (HPLC) systems and test for nine cannabinoids, among other methods.

Evelyn Alvarez, director of quality assurance at Encore Labs in Pasadena, said the issue of potency inflation is occurring because the labs that inflate numbers are “not being held accountable. They’re not being investigated. They’re not in fear of losing their license.” (A DCC spokesperson recently told CBT that the department has been taking action on potency inflation.)

“What’s being seen is that total THC numbers, in particular, are being inflated in order for labs to gain clientele,” Alvarez said. “These increased numbers are not because of method variability. They are intentional efforts on behalf of dishonest, fraudulent labs.”

TALLAHASSEE, Florida, Aug. 3, 2022 - PRESS RELEASE - Trulieve Cannabis Corp., a multi-state cannabis operator, announced the opening of its first Trulieve-branded dispensary in Arizona. Located at 1007 N. 7th St., the doors open at 8 a.m. on Tuesday, Aug. 2, with ongoing hours of 8 a.m. – 10 p.m., seven days a week. This is the first cannabis dispensary in the Roosevelt Row neighborhood in downtown Phoenix.

On Friday, Aug. 5, Trulieve Founder and CEO Kim Rivers and Trulieve President, formerly Harvest Founder and CEO, Steve White will attend a ribbon-cutting ceremony at 10 a.m. Customers are invited to join the celebration, which includes an onsite DJ, food trucks, special discounts, and partner giveaways. After 6 p.m., the celebration will continue with the First Friday Art Walk. Trulieve is a proud sponsor of the event, which welcomes residents, visitors, vendors, artists, and musicians to enjoy downtown Phoenix and its eclectic mix of bars, restaurants, food trucks, galleries, and other art-related venues.

"We are thrilled to open our first Trulieve dispensary in this vibrant area of downtown Phoenix," Rivers said. "We look forward to serving the community with our high-quality products and customer-centric approach to cannabis."

The new location will offer a variety of products, including Trulieve brands such as Alchemy, Avenue, Co2lors, loveli, Modern Flower, Muse, and Roll One. Customers can also choose from a broad assortment of products from partner brands, including Alien Labs, Connected, and El Blunto.

"I am particularly excited to see Trulieve bring its world-class approach to delivering exceptional customer experiences to the Arizona market," White said. "Medical patients and adult use consumers can benefit from the collective experience of Harvest and Trulieve, two long-time operators and pioneers in the industry."

Trulieve entered the Arizona market in October 2021 through the acquisition of Harvest Health & Recreation. Over the next year, existing Harvest locations will be rebranded to Trulieve. Harvest and Trulieve-affiliated dispensaries in Arizona are located in Avondale, Casa Grande, Chandler, Cottonwood, Glendale, Guadalupe, Lake Havasu, Mesa, Peoria, Phoenix, Scottsdale, Tempe, and Tucson.

Alyza Brevard-Rodriguez, the first Black, Latinx, female, LGBTQ and disabled veteran cannabis operator in New Jersey, says “it’s been quite a journey” to launch her retail business, The Other Side Dispensary, in the state’s adult-use market.

And she hasn’t even broken ground on the dispensary yet.

Jersey City’s Cannabis Control Board (CCB) approved Brevard-Rodriguez’s application to open her storefront in the Heights section of Jersey City last month, advancing her mission to expand her existing wellness brand, SW3AT, to include cannabis.

Brevard-Rodriguez and her business partner—who owns a 25% stake in the company—bifurcated their application with the city to also apply for a consumption lounge license in what will be a two-story space when the facility is built out. The city is currently awaiting consumption lounge rules from the state before it drafts an ordinance to regulate the businesses within its jurisdiction, but Brevard-Rodriguez is optimistic that the dispensary and consumption lounge will open together in early 2023.

Brevard-Rodriguez, who did not qualify for official social equity status in New Jersey due to income requirements, initially planned to open her business in Hoboken—her wife’s hometown—but zoning restrictions ultimately sent them elsewhere.

The list for pesticides that can be used on cannabis without being a violation of the Pesticide Applicators' Act has been updated. Please note the following products have been added:
Essentria IC ProPower SiSocoroTheia Fungicide

To view the updated list, click here for a pdf or click here for an Excel form. For questions regarding this change, contact Jolynn Morris at (303) 869-9060 or email [email protected].

We are currently reviewing pesticide labels upon request and maintaining a list of products whose label we have reviewed that we believe could be used on marijuana without violating 35-10-117(1)(i), as long as the applicator follows the label directions.

Please be sure to review the list; pesticide products may be removed from the allowed products list if the registrant has not renewed their pesticide product with the Department. Use of unregistered pesticides on Cannabis would be a violation of the Pesticide Applicators' Act.

Stay Informed

After nearly a month of negotiations, the Massachusetts House and Senate passed a compromise bill July 31 to help increase equity in the state’s cannabis industry, according to The Lowell Sun.

S. 3096 aims to promote greater diversity in the market, increase oversight on host community agreements and establish a framework for municipalities to allow cannabis consumption lounges in their jurisdictions, the news outlet reported.

The legislation, which now heads to the governor’s desk, would set aside 15% of the money in the Marijuana Regulation Fund—which houses the revenue generated from the state’s cannabis excise tax, application and licensing fees, and industry penalties—into a newly created Social Equity Trust Fund, according to The Lowell Sun.

The new fund would provide grants and loans to help those disproportionately impacted by the war on drugs participate in Massachusetts’ cannabis industry, the news outlet reported.

In addition, S. 3096 would grant the Cannabis Control Commission (CCC) the authority to review and approve host community agreements—the contracts that cannabis operators are required to sign with the municipalities they operate in—before the businesses obtain their final licenses, according to The Lowell Sun.

NEW YORK--(BUSINESS WIRE)--Aug.2, 2022--PRESS RELEASE-- Columbia Care Inc.(NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) announced today that itsnational cannabis shopping and loyalty mobile app, Stash Cash, is now available on the AppleStore in 14 of its markets, and across its retail brands, including Cannabist,Columbia Care, The Green Solution and Project Cannabis. Stash Cash is aneasy-to-use platform for patients and customers to build loyalty rewards, orderremotely and discover new products through its integration with Forage, where available. 

“Our commitment tocreating a seamless and approachable shopping experience for every patient andcustomer, and generating the data that will help us better serve them, has beenthe driving force behind our innovation engine since we started Columbia Care.It is this passion that led to Forage, our proprietary cannabis discovery tool,as well as Cannabist, our award-winning retail brand. We have created ameaningful customer experience through the app that serves as a bridge acrossour retail ecosystem and empowers the user on their cannabis journey – fromdiscovery to purchase to experience,” said Jesse Channon, Chief Growth Officer,Columbia Care. “This loyalty program also helps us to better understand ourcustomers, so that we can more efficiently understand their needs and introducenew products that fit with their preference profile. We’re proud of the entireteam that brought this to life and coordinated its launch across 14 markets, 68dispensaries and six retail brands. Coordinating the broadest industry launchof a loyalty app is yet another testament to the expertise and dedication thatthe Columbia Care team brings to serving our patients and customers andnormalizing cannabis across the country." 

The mobileapplication is the new digital hub for the entire shopping experience.Customers and patients in participating markets can place orders; discover newproducts through Forage; build a profile; earn and redeem rewards, wherepermitted, throughout the entire Columbia Care dispensary network; receivedeals, discounts and/or other updates from their dispensary; and interact withsocial platforms. 

BRIDGTON, Maine, August 2, 2022 - PRESS RELEASE - Sweet Dirt, a Maine-based, vertically integrated cannabis company, today announced the grand opening of its Bridgton, Maine adult-use cannabis store. Located at 1 Beaver Creek Farm Road, the new store will open its doors at 9 a.m. ET, Friday, Aug. 5. The refinished 2,500-square-foot retail location is the company’s third adult-use cannabis store and its second store in Cumberland County.

Only 40 minutes from North Conway, N.H., and an hour west of Portland, Maine, Bridgton is part of Maine’s Lake Region and is bordered by Long Lake, Highland Lake, Moose Pond, Sebago Lake, and the nearby Naples Causeway. Bridgton is also home to Pleasant Mountain, southern Maine’s tallest mountain, known for its extensive trail system and Shawnee Peak ski resort. Strategically located near the intersection of Routes 117 and 302, Sweet Dirt Bridgton will proudly serve the greater Bridgton community plus guests visiting the areas 33 lakes and ponds, mountains and trails, and Bridgton’s shops and galleries.

Sweet Dirt Bridgton will feature a thoughtfully curated mix of Maine-grown and Maine-made products including flower, prerolls, edibles, concentrates, hemp, CBD, and ancillary products. Sweet Dirt will also offer its own brands and its organically-grown cannabis certified clean by the Maine Organic Farmers and Gardeners Association (MOFGA).

Sweet Dirt has hired more than two dozen employees to support the new location including a dozen retail staff in and around Bridgton and additional cultivation and manufacturing employees at the company’s nine-acre campus in Eliot, Maine.

“With summer in full-swing, we are thrilled to be opening our Bridgton location and eager to become part of the Bridgton community,” says Jim Henry, chief executive officer of Sweet Dirt. “Bridgton - with its abundance of natural beauty, year-round outdoor recreation opportunities, and appreciation for the arts - is an ideal location to introduce our Sweet Dirt retail model and in-house brands to Mainers and visitors alike.”

Sweet Dirt Bridgton will be open daily, 9 a.m. to 9 p.m., for adults aged 21 and older. Online ordering is available at https://shop.sweetdirt.com.

Oklahoma has pushed back the start date for the moratorium on medical cannabis licenses to Aug. 26.

Gov. Kevin Stitt signed House Bill 3208 into law May 26, which “implements a two-year moratorium on medical cannabis licensing, prohibiting regulators from issuing new cultivation, processing and retail licenses from August 2022 to August 2024,” Cannabis Business Times previously reported.

The moratorium was expected to start Aug. 1, but has been pushed back to Aug. 26. The Oklahoma Medical Marijuana Authority (OMMA) said in a press release that it made a mistake in interpreting the effective date of the legislation.

“The language in the bill states the moratorium begins Aug. 1, but the bill itself did not earn enough votes in the Oklahoma Legislature to take effect until Aug. 26—the state has a two-thirds vote requirement for bills to take effect sooner than 90 days after adjournment. As a result, the moratorium cannot begin until the legislation takes effect,” the OMMA said.

The moratorium does not apply to existing grower, processor, or dispensary licenses. Existing license holders can apply to renew their licenses at any time, according to the release.

OMMA Executive Director Adria Berry said the organization originally interpreted the bill without considering the vote count.

Illinois Gov. JB Pritzker and the Illinois Department of Financial and Professional Regulation (IDFPR) issued the state’s second round of conditional adult-use cannabis dispensary licenses July 29, adding to the first batch of licenses that were awarded the week before.

Officials granted the most recent set of licenses to 28 applicants that were selected in a series of three lotteries held last summer to issue 185 total adult-use retail licenses, according to a press release from Pritzker’s office.

Friday’s awardees bring the total number of conditional licenses issued to 177.

The full list of awardees can be found here.

Of the applicants selected for licenses, 41% are majority Black-owned, 7% are majority white-owned and 4% are majority Latino-owned, according to the release. Thirty-eight percent of awardees did not disclose the race of their owners, but all the businesses issued conditional licenses qualify as Social Equity Applicants under the Cannabis Regulation and Tax Act that legalized adult-use cannabis in Illinois.

The Association of American Feed Control Officials (AAFCO) and the National Industrial Hemp Council (NIHC) are hosting a free webinar at 11 a.m. CT Aug. 9 to address the challenges and steps needed to gain approval for hemp as an animal feed ingredient.

The webinar, titled “Why Isn’t Hemp in Animal Feed? A Discussion on Overcoming Challenges & Gaining Approval,” will feature 15 industry professionals from the “feed manufacturing, hemp production, scientific research and regulatory oversight” industries who will cover the following topics: scientific research and data; ingredients review and approval; and interests and concerns everyone is facing, according to the webinar description.

According to Pet Food Processing, the three-part panel discussion will take place as follows: 

The goal of the webinar is to “connect with industry peers and share meaningful dialog around overcoming the challenges and moving forward together so hemp can become a safe and beneficial feed ingredient,” the webinar description states.

Register for the webinar here.

The laws approved during Louisiana’s 2022 legislative session take effect Aug. 1, and among the changes are tweaks to the state’s cannabis laws.

Effective Monday, law enforcement cannot use the odor of cannabis as grounds to conduct warrantless searches of homes, the Associated Press reported.

Another change transfers oversight of Louisiana’s medical cannabis program from the Department of Agriculture and Forestry to the Department of Health, according to the news outlet, while another new law expands the number of dispensaries in the state.

RELATED: Louisiana Lawmakers Pass Medical Cannabis Expansion Bill

There are currently nine medical cannabis retailers in the state, but legislation passed earlier this year creates nine regions for each of those license holders and requires the Louisiana Board of Pharmacy to issue a 10th license to the region with the highest population density as of Aug. 1. The law also allows existing retailers in each region to open up to two additional dispensary locations in their respective regions upon meeting specified patient counts.

CUMBERLAND, Md. – August 1, 2022 – PRESS RELEASE – RS BioTherapeutics, whose mission is to harness its strong and thorough understanding of the endocannabinoid system (ECS) to research, develop and commercialize interventions to address chronic and acute pulmonary (lung) inflammation-based diseases, has announced that it has appointed Jeremy Plumb as its Chief Cultivation Officer. Plumb will play an integral role in the company’s plans to develop a biotherapeutics cultivation and manufacturing site in the Cumberland, Md., area, which could potentially generate 100 high paying jobs within the next five years. 

Prior to joining RS BioTherapeutics, Plumb served as the Director of Production Science at Groundworks Industries, one of the largest Oregon-owned and -operated cannabis companies, as well as its portfolio brand, Pruf Cultivar, which operates one of the most technologically advanced controlled environment agriculture (CEA) cultivation facilities in North America. At Pruf, Jeremy combined his decades of cannabis horticulture experience with cutting-edge technology to deliver previously unattainable consistency in product quality.

RELATED: Keynote: Wayfinding: Re-Envisioning Cannabis Consumer Relationships for a Post-Prohibition Era

Plumb has also served as a cannabis consultant to Israel medical cannabis researchers and as a cannabis policy advisor for members of the U.S. Congress. He also serves on the Oregon Liquor Control Commission’s rule-making advisory committee, is a founding member of Smart Cannabis, and serves on the technical advisory committee of the Resource Innovation Institute. In addition, he is a board member of the MCRC (Multidimensional Cannabis Research Center) based at Kathmandu University and serves as an advisory board member of Node Labs, a botanical tissue culture company based in San Francisco, Calif. Plumb holds a Bachelor of Arts in Ecology from the New College of California and a Master of Arts in Psychology from the Pacific Graduate Institute. 

Commenting on the appointment, Justin Molignoni, Chief Strategy Officer of RS BioTherapeutics, said, “We are honored to welcome Jeremy Plumb to our talented leadership team. Jeremy is one of the most well-respected CEA cultivators in the world and will play a vital role in helping RS BioTherapeutics establish and scale our cultivation and manufacturing operation to support the development of our first investigational compound, RSBT-001 as well as other endocannabinoid system-focused therapeutics.”   

Responsible Growth Arkansas is one step closer to getting its adult-use cannabis legalization initiative before voters this fall after the secretary of state’s office verified that the group submitted enough signatures to qualify for the ballot.

Responsible Growth Arkansas submitted more than 190,000 signatures July 8, and officials announced July 29 that the group met the signature requirement of 89,151 valid signatures from registered voters, according to the Associated Press.

Next, the state Board of Election Commissioners must approve the proposal’s popular name and ballot title to qualify the measure for the November ballot, the news outlet reported.

RELATED: Voters in These 9 States Could Decide Cannabis Fate in 2022

The board is expected to review the proposal Aug. 3, according to AP.

Federal cannabis policy reform efforts have gained momentum this year; the U.S. House approved the Marijuana Opportunity Reinvestment and Expungement (MORE) Act for the second time in April and signed off on the Secure and Fair Enforcement (SAFE) Banking Act for the seventh time last month, while Senate Majority Leader Chuck Schumer, D-N.Y., formally introduced his long-awaited Cannabis Administration and Opportunity Act (CAOA) July 21.

Now, lawmakers are taking steps to ensure that past federal cannabis-related misdemeanors can be expunged.

Rep. Troy Carter, D-La., introduced The Marijuana Misdemeanor Expungement Act July 29 to create a federal expungement process to clear non-felony offenses, according to a press release from Carter’s office.

Carter said the legislation, which is co-sponsored by Rep. Rodney Davis, R-Ill., “will restore justice to millions of Americans who have suffered inordinate collateral consequences associated with marijuana-related misdemeanors.”

“These misdemeanors—even without a conviction—can result in restrictions to peoples’ ability to access educational aid, housing assistance, occupational licensing and even foster parenting,” Carter said in a public statement. “Delivering justice for our citizens who have been impacted by marijuana-related misdemeanors is a key component of comprehensive cannabis reform.”

Earlier this month, the Cannabis Center of Excellence (CCE) launched a research project to identify the ways in which U.S. veterans use medical cannabis. The Massachusetts-based nonprofit set out to determine where gaps might exist for veterans interested in accessing legal cannabis products in the state—and whether there may be opportunities to improve their lot.

The CCE is working with Patriots Helping Vets, licensed cultivator Gibby’s Garden and the University of Massachusetts Dartmouth Institutional Review Board to complete the project.

The groups are looking for 450 qualifying veterans in Massachusetts to sign up. 

Here’s what happens next: “After completing a baseline survey, veterans will be able to purchase [at a discount] a cannabis product bundle consisting of Gibby’s Garden products and one of the four retail outlets in Massachusetts. The bundle includes two ? ounces of cannabis flower, 2 strains of pre-rolls, and 15 ml of cannabis tincture. As part of the research study, veterans will be asked to report on access to cannabis issues, product(s), and its impact on their health and wellness via paper-based forms or a mobile medical cannabis app called Tetragram.”

The idea is to bring veterans together and then provide a streamlined point of access to medical cannabis products. The Gibby’s Garden bundle will give each veteran a small variety of products to check out; from there, the individual note-taking will help direct the research.

The project came together in the wake of a 2019 study on veterans’ cannabis consumption.

During the House AgricultureCommittee Subcommittee hearing on hemp July 28, industry professionalsaddressed the U.S. Food and Drug Administration’s (FDA) lack of regulation onCBD and hemp-derived compounds.

House Agriculture SubcommitteeMembers, U.S. Hemp Roundtable (USHR) Vice President and CEO of Kentucky-basedEcofibre, Eric Wang, and Kentucky Commissioner of Agriculture, Ryan Quarles,all testified during the hearing, which “aimed to explore opportunities to improve thecurrent rules on hemp production,” according to a USHRpress release.

The 2018 Farm Bill, whichlegalized hemp at the federal level, is set to expire in 2023. (The farm billexpires and is updated every five years). Wang and Quarles’ testimonies bothurged Congress to regulate CBD and other hemp-derived compounds in the upcoming2023 Farm bill, adding that the FDA’s inaction on regulating such products isnegatively impacting the industry, according to the release. 

“The hemp industry has beenseverely hampered by the slowness of the federal Food and Drug Administrationto create a regulatory pathway for hemp-derived cannabinoids, particularlycannabidiol,” Quarles said during his testimony. “Without clear direction fromFDA regarding products containing hemp-derived CBD, large retailers will notcarry the products and many business leaders are reluctant to move forward withthe development and manufacture of CBD-related products. That reluctance, inturn, has dampened industry demand for harvested hemp material.”  

 “In passing the 2018Farm Bill, Congress made clear its intent to support the production and sale ofhemp and hemp derivatives such as CBD. Thousands of U.S. growers planted hempin response, with farming for CBD representing most of all hemp acreage,” Wangsaid in his testimony. “However, public statements by FDA officials statingthat it is unlawful to sell ingestible hemp-derived CBD products have takentheir toll on the industry. CBD commerce and investment have been chilled dueto continued inaction at the federal level, impairing economic opportunity forAmerican farmers.”  

Wang also noted that the lackof regulation impacts consumer's’ safety, as many companies sell productswithout appropriate safeguards and misleading claims. 

The Oregon Liquor and Cannabis Commission (OLCC) “has grown tired of ‘bad actors’ gaming the system when they’re caught breaking the law or violating OLCC rules."

That’s according to a July 29 press release from the commission announcing plans to crack down on these licensees by limiting their ability to monetize their licenses.

At their July 21 meeting, commissioners discussed a new approach against cannabis operators who, facing license cancelation, want to sell their businesses through a “change of ownership,” which requires the OLCC to use its discretion in issuing a new license to the buyer.

The change of ownership option is available to all licensees, even those facing criminal charges for diverting cannabis into the illicit market, for example, or knowingly selling cannabis to minors.

While commissioners are not advocating to halt the sale of licensed cannabis businesses—a ban they have no authority to enact, according to the press release—they are concerned that the value of the cannabis business is based on the ability of the new owner to receive a new license through a change of ownership, despite Oregon’s current license moratorium.

Officials in Denver, Colo., are hatching a plan to reserve all cannabis delivery licenses for social equity applicants.

A proposal put forth by the Denver Department of Excise and Licenses would issue the licenses to social equity businesses and require all cannabis operators to use the social equity transporters to conduct deliveries, according to a Denverite report.

“There has not been as much participation in delivery partnerships between stores and transporters as we would have liked to have seen,” Department of Excise and Licenses Executive Director Molly Duplechian told the news outlet. “We’re hoping that this proposal will give them some certainty going forward.”

RELATED: Denver Set to Break the Ice on Cannabis Social Equity Technical Assistance Program

The department will accept feedback for the next two weeks on the proposal, which the Denver City Council will review next month, Denverite reported.

On the heels of a federal RICO lawsuit alleging cannabis potency inflation in Arkansas, the issue is top of mind for many industry members.

While a ruling in that case remains to be seen, Cannabis Business Times recently spoke with cannabis testing lab executives about the topic of purposely altered lab results. Potency inflation is one of those issues, though sources told CBT that they also include hemp growers requesting potency deflation, as well as cannabis businesses seeking lower contaminant percentage results.

For this story, CBT spoke with Josh Wurzer, president and co-founder of SC Labs, a cannabis and hemp testing lab that operates in California, Colorado, Illinois, Michigan, Oregon, Pennsylvania and Texas,  and Ben Rosman, a licensed attorney who is CEO and co-founder of PSI Labs, which operates in California and Michigan. Wurzer is based in California, while Rosman is based in Michigan.

CBT also spoke over email with a representative from the California Department of Cannabis Control (DCC), who forwarded us this July announcement and stated the DCC will be answering our questions. (Refer back to CBT’s site for updates on this topic.)

Photo courtesy of SC Labs

Josh WurzerWhat’s Going On With Potency Inflation?

Ongoing testing issues across the industry come in the forms of potency inflation, when cannabis businesses in the supply chain and testing labs report a higher THC percentage than is accurate, and the related problem of lab shopping, when cannabis businesses search for labs that will deliver inflated potency results.

Green Meadows, a Massachusetts-based vertically integrated cannabis operator, named several executive leadership changes.

Bob Patton, co-founder and CEO of Green Meadows, will transition to chairman of the company while Chris Zawacki, Patton’s son who is also a co-founder and formerly served as COO, was promoted to CEO.

In turn, Max Jones replaces Zawacki as COO, becoming the first non-family member to be appointed to Green Meadows’ C-Suite, according to a company release.

Jones joins the company with more than 30 years of experience in manufacturing and operations, most recently serving as COO at Maitri Holdings, a vertically integrated medical cannabis operator in Pittsburgh, Pa.

Green Meadows also appointed Dan Donahue to vice president of cannabis operations and named Josh Turner as vice president of cultivation.