MjLink Cannabis Business News and Press

An adult-use cannabis legalization bill gained momentum in the Delaware House this spring before it ultimately stalled after debate over a social equity fund included in the legislation.

Now, the sponsor behind that legislation, Rep. Ed Osienski (D-Newark), has plans to reintroduce a substitute bill in January, when the Legislature reconvenes for its 2022 legislative session, according to a Cape Gazette report.

“I hope to get this done before Washington takes steps, because this will give Delaware businesses a head start before the federal government changes its regulations,” Osienski told the news outlet. “States that didn’t take this action will be slow starting out, whereas states that have will have a head start and be able to sell their product across state borders.”

Last year’s attempt at legalization, H.B. 150, included a social equity fund that would have provided grants or loans to minority business owners to operate cannabis businesses in areas that have been disproportionately impacted by prohibition. The legislation did not specifically outline how the fund would be financially supported, and when Osienski filed an amendment to address funding, some legislators argued that it weakened the bill, the Cape Gazette reported.

Osienski told the news outlet that a group is currently working on revised language to clarify that a commission will work to create a social equity fund for minority applicants.

Kind Idaho Chair Jackee Winters is laser-focused on qualifying the group’s medical cannabis legalization initiative for the state’s 2022 ballot in order to help her daughter, who suffers from a brain tumor, get legal access to cannabis.

“It’s time for Idaho to grow up,” she told Cannabis Business Times and Cannabis Dispensary. “There are people here who suffer, and we’re behind the times. We need medical advancements in Idaho, and I don’t want to have to relocate my entire family. … It’s not fair that she’s got to suffer, and they basically try to turn us all into criminals by not letting us have our own choice.”

Winters said Kind Idaho has a “skeleton crew” of volunteers in different parts of the state, and has collected roughly 5,000 of the 65,000 total signatures needed to get the group’s medical cannabis legalization measure, the Idaho Medical Marijuana Act for 2022 (IMMA), before voters next year.

IMMA would legalize the possession of up to 4 ounces of cannabis for medical purposes, as well as the home cultivation of up to six plants for patients with a “hardship waiver.” The measure would also create a system of dispensaries to sell medical cannabis to qualified patients in the state.

“We’re asking for regulated medication—cannabis—that would be available to [patients] when they need it,” Winters said. “We really need something … for the people in Idaho who suffer.”

Illinois is in the final stages of licensing new cannabis retailers in its adult-use cannabis market, which launched in January 2020, but employees in the state can still be fired for testing positive for cannabis use.

To change that, Democratic Reps. Bob Morgan, Kambium Buckner and Kelly Cassidy have sponsored H.B. 4116, which would prohibit employers from terminating—or refusing to hire—employees based solely on a positive drug test for cannabis.

The bill places limits on the allowable amount of cannabis in an employee’s system; legal limits would be 5 nanograms per milliliter of blood or 10 nanograms per milliliter of saliva.

Since cannabis remains federally illegal, federal employees or those with federal contracts would be exempt from the law, according to a KHQA report.

The legislation also provides exceptions for certain groups like emergency workers, and it would allow employers to take disciplinary action against employees who are impaired on the job.

The Alabama Medical Cannabis Commission held its second meeting this week, where commissioners indicated that the state’s medical cannabis program may not launch by September 2022, as originally planned.

The 14-member commission, which only received its final appointments last month, met to begin discussions about the framework of the program that will eventually allow doctors to recommend medical cannabis to patients with one of several qualifying conditions, including autism, Crohn’s disease, depression and post-traumatic stress disorder.

Medical cannabis sales were originally expected to launch by September 2022, but commissioners now anticipate that cultivation licenses may not be available until then, which could delay the program’s launch into 2023, according to a WSFA report.

“The legislation was initially [supposed] to start in September of 2021 and [it was] pushed it back a year not thinking that we could get organized and going this fast,” Alabama Medical Cannabis Commission Chair Dr. Steven Stokes told the news outlet. “Sen. [Tim] Melson was here; he said he would assist us in enabling legislation in the first session so maybe we can move it up.”

The commission is still accepting applications for a director until Aug. 30, WSFA reported. A director will be appointed at the next meeting on Sept. 9.

BOCA RATON, Fla., Aug. 26, 2021 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Jushi Holdings Inc., a vertically integrated, multi-state cannabis operator, announced that it has completed its previously announced acquisition of Franklin Bioscience OH, LLC, a licensed medical cannabis processor in Ohio. FBS – OH operates an 8,000-suqare-foot, state-of-the-art processing facility located in Columbus, Ohio. Additionally, the company has launched a series of upcoming brands and products in the State of Ohio, beginning with the debut of its brand, Sèche, the company’s fine flower line, which is currently available for purchase at partner dispensaries across the Buckeye State.

Jushi plans to follow the Sèche brand launch with the debut of Tasteology, the company’s brand of premium, real fruit, cannabis-infused gummies and tarts, available in the following cannabis-infused gummies flavors: Blueberry Calm, Peach Balance and Mango-Pineapple Boost, and in the following cannabis-infused tarts flavors: Green Apple Balance, Sour Watermelon Boost, Blue Raspberry Calm and Mellow Mint. Jushi’s award-winning vaporization line, The Lab, in the form of .5g and .3g vape cartridges with rechargeable batteries, will also make its official Ohio debut in the coming weeks.

With the company’s previously announced acquisition of OhiGrow, LLC, one of 34 licensed cultivators in Ohio, and Ohio Green Grow LLC (collectively, “OhiGrow”), Jushi expects to start its first cannabis plants this month at the OhiGrow facility in Toledo, Ohio. Jushi also expects to bring additional Sèche flower product lines, along with its award-winning flower brand, The Bank, to Ohio medical cannabis patients in the first quarter of 2022. Currently, the company’s Sèche and The Bank brands are available at dispensaries across Nevada and Pennsylvania, and are also expected to launch in Virginia in September of this year.

Jushi Chief Executive Officer, Chairman and Founder Jim Cacioppo commented, “We are cultivating and producing brands in Ohio that are exciting, connective and relevant to Ohio’s medical marijuana patients. Through our continued dedication to research and development, our team has a firm understanding of what our customers and patients are looking for in cannabis products. Jushi’s objective is for our brands and product offerings to not only meet but exceed cannabis consumers’ expectations. From innovative and genetically superior flower lines, to top of the line concentrates and unique edible offerings, our goal is to reinvent, redesign and redefine the cannabis experience."

The New Mexico Cannabis Control Division (CCD) adopted its final rules Aug. 24 for adult-use cannabis production, with plans to begin accepting license applications from cultivators later this week, according to a KRWG report.

The regulations, which are effective immediately, include licensing requirements and plant count limits for cultivators that allow licensees to grow a maximum of 10,000 plants at a time.

Once the CCD begins accepting cultivation license applications through its online system, it has 90 days to approve or deny the applications it receives.

“We are ready for business,” Regulation and Licensing Department Superintendent Linda Trujillo told KRWG. “The Cannabis Control Division is committed to supporting licensees to maximize the economic opportunities that adult-use cannabis sales offer our state.”

RELATED: New Mexico Prepares for April Launch of Adult-Use Cannabis Sales

TORONTO, Aug. 25, 2021 /CNW/ - PRESS RELEASE - The Green Organic Dutchman Holdings Ltd., a producer of premium certified organically grown cannabis, has announced it completed its first international commercial shipment consisting of cannabis flower and other extracts destined for the highly anticipated South African medical cannabis market. 

TGOD's cannabis flower will be the first to be distributed legally in the country at a commercial scale. Its products received the approval of the South African Health Products Regulatory Authority (SAHPRA). This illustrates the value of TGOD's organic portfolio and bolsters its position in securing international market access. TGOD continues to see demand and opportunities for superior quality, high potency and consistent products, which the CleanCraft processes enable TGOD to deliver.

"This is an important milestone in our strategy to export our certified organically grown medical cannabis products to international markets. We are confident that our in-country partner will continue to develop this nascent market and that TGOD's portfolio of products will be well received by patients that have previously lacked access to legal, high-quality medical cannabis," commented Sean Bovingdon, TGOD's CEO and Interim CFO. "We are pleased to be able to complete our first shipment mid-Q3 2021, in line with our corporate objectives. This is setting the base for our large-scale commercialization into the international market in 2022."

A medical cannabis legalization bill cleared the North Carolina Senate Judiciary Committee for the second time Aug. 24, according to the Winston-Salem Journal.

Senate Bill 711, called the NC Compassionate Care Act, originally passed the Judiciary Committee June 30, then cleared the Senate Finance Committee July 21.

The legislation was then sent to the Senate Health Care Committee before being pulled and sent back to the Judiciary Committee for a second review, where lawmakers addressed an amendment consisting of “mostly technical changes,” according to the Winston-Salem Journal.

Some of the changes were requested by the North Carolina Department of Health and Human Services, the news outlet reported, while others were based on medical cannabis regulations established by the Utah Legislature.

Changes adopted by the Judiciary Committee include adding a new category for patients with terminal illnesses who have been diagnosed with less than six months to live, the Winston-Salem Journal reported, as well as a ban on smoking or vaping cannabis within 1,000 feet of a workplace, K-12 school, childcare facility, or house of worship.

It’s no secret that many of California’s legal cannabis businesses have been struggling to thrive since the state launched its first adult-use sales in 2018.

To help support the industry, the County of Humboldt launched Project Trellis in 2019 as a three-tier initiative that provides business support and resources to the industry, covering cannabis business micro-grants, local equity, and marketing and promotion.

“It was created through a resolution that provided 10% of our local cannabis cultivation taxes to be returned to the community through this project,” said Peggy Murphy, economic development specialist for the County of Humboldt. “It covers three basic programs.”

The Micro-Grant Program offers grants of up to $10,000 for cannabis and ancillary businesses—including cultivators, retailers, distributors and manufacturers—for projects approved by the Project Trellis Committee. The grants are competitive, and applications go through the committee for scoring and ranking.

In its first year, Project Trellis awarded $180,000 in microgrants, and in its second year, it awarded $519,000. The grants have funded a variety of projects, Murphy said, including business’ organic certifications, water tanks and solar panels.

The Illinois Department of Financial and Professional Regulation (IDFPR) conducted its third and final lottery Aug. 19 to award 75 cannabis retail licenses, but final licenses cannot be issued until lawsuits brought forth by applicants are resolved.

WAH Group LLC alleges in its lawsuit that regulators mistakenly excluded the company from Illinois’ first licensing lottery, which took place July 29.

WAH Group claims state officials told the company that it would qualify for the next lottery, which occurred Aug. 5, but WAH alleges in its lawsuit that the scoring process was flawed because regulators awarded bonus points to applications submitted by veteran-owned businesses.

WAH Group revealed that one of the company’s partners is a veteran during a supplementary scoring period, after applicants learned that those extra points were needed to receive a perfect score on their applications and qualify for the licensing lottery, according to a Chicago Sun-Times report.

In an Aug. 16 ruling, Cook County Judge Moshe Jacobius ordered IDFPR to include WAH Group in the Aug. 19 lottery, where the company ultimately won two of the 75 available dispensary licenses.

Ohio Attorney General Dave Yost approved revised language for an adult-use cannabis legalization measure Aug. 20, according to The Columbus Dispatch.

Earlier this month, Yost rejected a previous version of the language, which was submitted by the Coalition to Regulate Marijuana Like Alcohol. Yost ruled that the summary of the group’s 45-page initiative petition was not a “fair and truthful statement of the proposed law.”

The group submitted revised summary language Aug. 13.

RELATED: Group Launches Effort to ‘Regulate Marijuana Like Alcohol’ in Ohio

The proposed law would legalize and regulate adult-use cannabis cultivation, manufacturing, testing and sales to adults 21 and older. Adults would be allowed to grow up to six plants at home for personal use, with a maximum of 12 plants per household.

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:

CinnactionGarlandHedge Defense Plant ProtectantLALSTOP K61 WPThymicZonix Biofungicide

To view the updated list, click here for a pdf or click here for an Excel form. For questions regarding this change, contact Laura Quakenbush 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

More than 70% of New Jersey municipalities have opted out of hosting adult-use cannabis businesses, according to the New Jersey Herald.

Roughly 400 of the state’s 565 total municipalities have banned adult-use cannabis cultivators, manufacturers, wholesalers, distributors, delivery companies and dispensaries, the news outlet reported.

Forty-one towns have prohibited dispensaries but allow some combination of the other five adult-use cannabis license types, according to the New Jersey Herald.

Ten municipalities opted out of the adult-use cannabis industry but made an exception for medical cannabis businesses.

That leaves 98 municipalities, mostly in South Jersey and Central Jersey, that have passed ordinances allowing all adult-use businesses within their jurisdictions, according to the news outlet, with many placing strict zoning regulations on retailers.

Cannabis Business Times and Cannabis Dispensary have launched the Best Cannabis Companies To Work For—2022. The awards program will identify and recognize the best employers in cannabis cultivation and dispensary markets, continuing the recognition the media brands debuted two years ago.

Registration and recognition is free. Visit bestcompaniescannabis.com to apply. The registration deadline is Oct. 8.

A ranking of the “Best Cannabis Companies To Work For – 2022” in cultivation and retail will be revealed in Cannabis Business Times and Cannabis Dispensary in early 2022.

The survey is organized and managed by the Best Companies Group (BCG), an independent research firm specializing in identifying and recognizing great places to work.

“We are thrilled to continue this project for the third year and to not only recognize great cannabis companies, but also learn more about what makes certain cannabis companies so successful in creating positive work environments,” Editorial Director Noelle Skodzinski said. “Competition for talented employees is now even more intense, due in part to the economic pressures of the past year, and this program also can help ranking companies attract great talent.”  

Read more about the cultivation and dispensary businesses that ranked in the 2021 program and were featured in Cannabis Business Times and Cannabis Dispensary.

The big story this week has been the legal fallout and ongoing turmoil in Illinois, where several lawsuits target Illinois’ licensing process to award 185 new cannabis dispensary licenses. It’s part of a longer saga in that state’s adult-use market. It’s also a good example of the countervailing forces present in much of cannabis licensing ca. 2021: lottery systems v. social equity policies v. free-market demand v. geographic interests, and so on. A perfect storm.

Read Senior Digital Editor Melissa Schiller’s latest, linked below, to get a sense of how these ongoing disputes might alter the landscape for license holders (and license aspirants) in Illinois.

Here are some of the key cannabis headlines from this past week:

From Assistant Editor Andriana Ruscitto: “Shortly after Apple loosened its restrictions, Weedmaps, an app and website that lets users find local dispensaries and cannabis-related businesses, updated its app to allow consumers to purchase cannabis.” Read more “In the latest of several lawsuits that take aim at Illinois’ licensing process to award 185 new cannabis dispensary licenses, two applicants, Suite Greens LLC and So Baked Too LLC, claim state officials wrongfully forced them to give up three of their spots in the state’s third and final licensing lottery, which is scheduled for Aug. 19.” Read more “Texas expanded its limited medical cannabis program during its 2021 legislative session, and Texas Original Compassionate Cultivation (TOCC), one of the state’s three vertically integrated cannabis licensees, is planning an expansion of its own to meet increased patient demand.” Read more “Michigan's total cannabis sales had yet another record-breaking month, topping $171 million in July, according to a monthly data report released from the Michigan Marijuana Regulatory Agency.” Read more “A federal court has overturned Maine’s requirement that all medical cannabis dispensaries must be owned by Maine residents.” Read more “After years of regulatory limbo that allowed registered patients in Georgia to possess—but not purchase—low-THC cannabis oil, the state has established a regulated market and has licensed six businesses to produce and sell the oil. However, some industry stakeholders question the state’s licensing process and the businesses that ultimately won the right to operate in Georgia’s market.” Read more “The North Carolina Senate Judiciary Committee reviewed a medical cannabis legalization bill for the second time Aug. 18 to discuss technical changes to the legislation, according to the Winston-Salem Journal.” Read more “The Pennsylvania Medical Marijuana Advisory Board voted Aug. 17 to reject requests to add five new qualifying conditions to the state’s medical cannabis program.” Read more  ]]>

RIVERSIDE, Calif., Aug. 13, 2021 – PRESS RELEASE – The former mayor of Adelanto was arrested Aug. 13 by special agents of the FBI on a federal grand jury indictment alleging he accepted more than $57,000 in bribes and kickbacks in exchange for approving ordinances authorizing various types of commercial cannabis activity within the city, and ensuring his co-schemers obtained city licenses or permits authorizing certain commercial cannabis activities.

Richard Allen Kerr, 64, of Adelanto, was taken into federal custody without incident. He is charged with seven counts of honest services wire fraud and two counts of bribery.

Kerr, who served as Adelanto’s mayor from 2014 to 2018, was expected to make his initial appearance at the U.S. District Court in Riverside the same day of his arrest.

According to the indictment returned on Aug. 11, as part of his official duties, Kerr voted on ordinances governing zoning regulations in the city and served on Adelanto’s Cannabis Dispensary Permit Committee, which determined the number of dispensary permits that would be issued and which applicants would receive them.

As mayor, Kerr supported cannabis legalization, voted in favor of an ordinance authorizing cannabis cultivation in the city, voted in favor of an ordinance authorizing the operation of medical cannabis dispensaries, and voted to authorize the distribution, transportation and testing of medical cannabis, among other commercial cannabis activities. At the same time, Kerr secretly used his official position to enrich himself and his co-schemers by passing these same ordinances, according to the indictment.

Kerr allegedly also drafted zones for commercial cannabis activities to include locations used by his co-schemers, and he ensured they obtained the licenses and permits they sought—in exchange for bribes, kickbacks and gifts.

It’s been roughly nine months since New Jersey voters approved adult-use cannabis legalization in the 2020 election, and on Aug. 19, the state’s Cannabis Regulatory Commission (CRC) took steps to get the market off the ground when it voted to adopt the first set of rules to regulate the industry.

“We were ambitious with our timeline to make personal-use cannabis available, and I am pleased the Commission was able to create these regulations in record time,” Gov. Phil Murphy said in a public statement. “The regulations adopted today reflect the CRC’s commitment to transparency and social equity. Prioritizing applications from women and minority entrepreneurs, from business owners living in economically-disadvantaged communities, and from small business owners will ensure the market grows the way we envisioned—in a way that is socially equitable and reflective of our state’s diversity.”

The initial rules aim to address anticipated barriers to entry in the state’s forthcoming adult-use cannabis market in a few different ways.

First, the CRC will prioritize applications from certified minority-, women- and disabled veteran-owned businesses, as well as from applicants who live or will locate their business in one of several designated “Impact Zones” or economically disadvantaged areas.

“We are pleased to see the Cannabis Regulatory Commission is prioritizing applications from minority-, women- and disabled veteran-owned businesses,” John Fanburg, co-chair of the Cannabis Industry Practice at Brach Eichler, said in a public statement. “It is a recognition as to the failed efforts of prohibition when it comes to cannabis and its impact upon the minority community.  We are hopeful that as this process continues to evolve the commission will update their rules and regulations to be more reflective of the industry and the population of applicants going forward.”

Most months, Cannabis Business Times brings readers the feature “Cultivation Matters,” a recurring series focusing on plant cultivation by researchers from North Carolina State University that can steer growers toward successful operations.

Understanding micro- and macronutrients, for example, and their roles in helping plants grow properly to complete their lifecycles, equips cultivators with the knowledge to produce healthy plants with optimal yields.

Biological controls, plant oddities, plant physiology, nutrient lockout, fertility management, water quality and the like are explored and explained in this series. Well-versed cultivators who just need a refresher as well as less experienced growers who are just getting going can both benefit from findings to reduce their trial-and-error growing pains.

For in-depth analysis, findings and best practices, read the following “Cultivation Matters” articles previously published in Cannabis Business Times:

 

What To Do When Micronutrients Become Macro Problems (August 2021)

Upon Apple revising its App Store Review Guidelines in early June, apps allowing users to make in-app cannabis purchases have hit the market. 

Apple's changes to the App Store Review Guidelines cleared up existing policies, added new specifications for app makers and altered rules about what available apps for purchase can do, Cannabis Dispensary previously reported.  

The updated guidelines also loosen restrictions for in-app purchases from a cannabis dispensary and licensed pharmacies.

And shortly after Apple loosened its restrictions, Weedmaps, an app and website that lets users find local dispensaries and cannabis-related businesses, updated its app to allow consumers to purchase cannabis.

Before Weedmaps’ revisions, users could only use the app to locate adult-use or medical cannabis dispensaries or browse their menus due to Apple's restrictions and local and federal guidelines, TechCrunch reported.

But now users can "browse, select, purchase cannabis and have it set up for pick-up or delivery—all within the app," according to TechCrunch.

In the latest of several lawsuits that take aim at Illinois’ licensing process to award 185 new cannabis dispensary licenses, two applicants, Suite Greens LLC and So Baked Too LLC, claim state officials wrongfully forced them to give up three of their spots in the state’s third and final licensing lottery, which is scheduled for Aug. 19.

The lawsuit, filed Aug. 16 in Cook County court, asks the state to give the applicants all the spots they initially earned in the lottery, according to the Chicago Sun-Times.

Suite Greens and So Baked Too were among 21 applicants that were originally included in a lottery to award 75 cannabis dispensary licenses last September.

After that initial announcement, however, rejected applicants filed a series of lawsuits over the licensing process, and the state ultimately created 110 new licenses and unveiled a plan to award the 185 total licenses in a series of three lotteries scheduled for July 29, Aug. 5 and Aug. 19.

The state awarded 110 total cannabis retail licenses in the July 29 and Aug. 5 lotteries, but a Cook County judge has barred the state from issuing any final dispensary licenses until a separate lawsuit, brought forth by another rejected applicant, WAH Group LLC, is settled.