New Jersey Congressman Outraged that Not One Cannabis License Issued to Black-Owned Businesses

Representative Donald M. Payne, Jr. issued an official statement on January 28, announcing his disapproval that not a single cannabis license, out of 56 licenses issued in New Jersey, was granted to Black-owned businesses.

New Jersey’s Cannabis Regulatory Commission (CRC) is the entity in charge of issuing any cannabis licenses, and the CRC has not issued one to any of the state’s Black business owners. The CRC started taking applications from adult-use cannabis growers, manufacturers and testing labs on December 15, 2021.

Medical cannabis has been legal in the state since 2012. Last year, New Jersey legalized marijuana for adult us, paving the way for retail sales. But in the 10 years of legalization, not one Black-owned cannabis business has been granted a license, according to the African American Chamber of Commerce of New Jersey.

“I am outraged to hear that Black-owned businesses have been shut out of the state’s cannabis marketplace,” said Rep. Donald M. Payne, Jr. “Black users are four times more likely to be arrested for marijuana possession than white users, even though overall use for both groups is almost the same.  New Jersey has a chance to correct this inequality and allow people abused by the system to finally benefit from it with a fair distribution of cannabis business licenses.  Instead, we are seeing the same inequality with these licenses that we see in marijuana arrests. Governor Phil Murphy promised that the state’s cannabis industry would right the wrongs of the past as it concerns social justice.  Now, New Jersey needs to uphold this promise.  I join the African American Chamber of Commerce of New Jersey in their outrage that this inequality continues to plague our state, our society, and our country.”      

I am outraged to hear that none of the 56 NJ cannabis business licenses were awarded to a Black-owned business. These entrepreneurs have been shut out of New Jersey's cannabis market. NJ needs to end this injustice! pic.twitter.com/ITYIfyMYC3

— Rep. Donald Payne Jr (@RepDonaldPayne) January 28, 2022

The African American Chamber of Commerce (AACCNJ) brought up the issue in the first place, saying that Black business owners were excluded from New Jersey’s cannabis business in a press release issued January 27.

“Our intent here is not to go back and forth with Governor Murphy and the CRC, but is to make a point,” Founder, President and CEO of the African American Chamber of Commerce of New Jersey, John E. Harmon, Sr., IOM told High Times. “I believe that we spent a lot of time establishing medical cannabis that dates back to 2009 with Governor Christie, and Governor Murphy has expanded it. In that length of time, somebody should have figured out the process. They knew—it’s well-documented—that Black and brown people had been severely penalized from this industry. So New Jersey has not put a policy in place like New York to include minority women. Had that policy been in place, the equity would have been clearly understood […]”

Harmon continued, “Without policy, you leave it to others to get in where they fit in. That doesn’t say much to the people who gave this administration 94 percent of the vote.”

“Based on conversations I’ve had, with stakeholders, out of the 56 licenses awarded to date, none has been awarded to a Black-owned business. People need to know what’s going on,” stated Harmon.

A specific CRC requirement, Harmon says, that license applicants maintain site control while the CRC considers their applications, is what’s keeping some Black entrepreneurs from participating in the industry. Applicants must have control of the real estate of operations. This means that many applicants are burdened with monthly lease payments which cannot be deducted as a business expense—given the federal status of cannabis.

Social justice is the backbone of dozens of state cannabis reform bills across the country. Governor Phil Murphy ushered in the creation of New Jersey’s cannabis industry in the name of social justice. “The clock is ticking,” Harmon said, mirroring what other state leaders are saying as well.

States around the country are touting social justice with provisions such as a social equity fund in New York, but walking the walk is another story.   

Furthermore, getting New Jersey’s adult-use cannabis consumer market online may not meet a self-imposed deadline originally set for late February. Jeff Brown, the executive director of the CRC, said a number of factors are still in the way before sales can begin.

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Personalized, evidence-based cannabis care with products sourced from a dispensary near you

App-powered patient-to-clinician partnerships with integrated care & products have arrived thanks to EO Care.

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South Carolina Lawmakers Mull Over Medical Cannabis Proposal

Debate surrounding a proposal to legalize medical cannabis will continue this week in the South Carolina legislature, with votes on changes to the bill reportedly coming as early as Tuesday.

Members of the state Senate began debate last week on legislation introduced by Republican Senator Tom Davis, known as the “South Carolina Compassionate Care Act.”

Under the bill offered up by Davis, patients with at least one of a number of qualifying conditions could received cannabis treatment, including: cancer, multiple sclerosis, a neurological disease or disorder (including epilepsy), sickle cell disease, glaucoma, PTSD, autism, Crohn’s disease, ulcerative colitis, cachexia, a condition causing a person to be home-bound that includes severe or persistent nausea, terminal illness with a life expectancy of less than one year, a chronic medical condition causing severe and persistent muscle spasms or a chronic medical condition for which an opioid is or could be prescribed based on accepted standards of care.

But there are restrictions on how the cannabis treatment may be administered, with eligible patients unable to legally smoke marijuana. Instead, they would use alternative methods, such as oils, vaporizers and patches.

According to the Associated Press, “there will be more debate when the Senate meets” on Tuesday, and “there may be votes on amendments to change the bill.”

The state Senate began debate on Davis’s bill last Wednesday and Thursday, but the Associated Press said that lawmakers adjourned before holding a vote.

However, the debate itself was historic. Davis has been pushing to legalize medical marijuana in the Palmetto State since 2015. Last week marked the first time in the GOP lawmaker’s seven-year effort that one of his proposals was actually brought to a debate on the Senate floor.

“If you pound at the door long enough. If you make your case. If the public is asking for something, the state Senate owes a debate,” Davis told The Post and Courier newspaper earlier this month. “The people of South Carolina deserve to know where their elected officials stand on this issue.”

The Post and Courier said that Davis has said that his bill would establish “the most conservative medical marijuana program in the country as a result of continued opposition from law enforcement, most notably State Law Enforcement Division Chief Mark Keel, who’s highly respected in the Statehouse.”

The Associated Press said that Davis “made his bill conservative based on concern from law enforcement and others.”

But the legislation’s prospects will still face headwinds from other lawmakers and interest groups in the state. 

Groups like the South Carolina Sheriff’s Association are opposed to the proposal, for example.

“If marijuana is medicine, it should be regulated as every other medicine is regulated. We are aware of no other medication that has to be approved by the General Assembly,” said Jarrod Bruder, executive director of the South Carolina Sheriff’s Association. “This (bill) includes a lot of other things—including vaping, including edibles. This is not going to your local pharmacy—it’s going to a dispensary. This is not being treated like every other medicine is.”

South Carolina Law Enforcement Division Chief Mark Keel voiced similar objections, telling local television station WYFF4: “My position on medical marijuana is well known and unchanged. Until it is approved by the FDA, prescribed by a physician and dispensed by a pharmacist I remain opposed to it. Doctors cannot legally prescribe it and pharmacists cannot legally dispense it.”

South Carolina Gov. Henry McMaster, a Republican, has expressed opposition to recreational pot, but said last summer that he needs “more information” on medical cannabis.

“I know there’s a lot of suffering that is—apparently is—treatable or helped with what they call medical marijuana,” McMaster said at the time. “I think we need to be very careful and use common sense and see what experience has produced in other states before we move too quickly.”

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Cannabis suppositories: Would you try kush for your tush?

After three years of legalization, cannabis suppositories have finally hit the retail market. But are Canadians ready?

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Ten “Must Haves” for Cannabis Businesses in 2022

I started as a lawyer in the cannabis industry in 2010. Twelve years in there has been immense progress and maturation at the business level for cannabis licensees. This post is dedicated to the top ten list of which arrows all cannabis companies, regardless of state, size, culture, or market share, must have in their business quivers in 2022.

     1.  Intellectual property

While you still can’t register trademarks with the USPTO for cannabis goods, there is now all kinds of intellectual property and brand strategy that goes into state law registration and registration for ancillary goods and services classes. Cannabis businesses need to keep these issues on their radar when crafting brand strategies. At the same time, however, they should not neglect the trademark basics. For a primer on those basis, check out our post here.

     2.  Insurance

Many states require some form of insurance or bond to be secured by cannabis licensees. At a minimum, licensees are often forced to get commercial general liability policies. There’s so much more protection though now for cannabis licensees than there was ten years ago. And given the rapid pace at which cannabis companies move and shake, they should now consider and secure those additional policies, riders, or protections that will insulate their businesses and investments from disaster. This may even include insurance for theft in transit and financing in some cases.

     3.  Recall plan

Yes, cannabis companies are 100% subject to recalls, both voluntary and mandatory. Still, way too many cannabis companies don’t have solid recall plans, protocols, or procedures to protect them in the event it happens– and that’s despite the fact that almost all states have some law or rule about recalls on the books. We’ve written a lot about cannabis recalls and the consequences and what to do if you find yourself in one (see also here and here). Also, importantly, don’t forget to examine getting products liability insurance because you may well need it at some point in the life of the business when making and selling consumer goods.

     4.  Compliance team

I’m still shocked by the number of potential clients who come to us that don’t have a built out compliance team. Sure, if you’re a start up and don’t have the immediate cash to piece one together, that makes sense. But to continue to forego staffing out a full-blown compliance squad, or failing to hire a compliance officer or manager at a certain point, is a very large and costly mistake. We often end up acting as outside GC to 90% of the cannabis companies we represent. We almost always encourage them though to start searching for a compliance squad so that they can internalize compliance priorities accordingly. To not have a compliance team in 2022 definitely makes you an industry outlier at this point.

     5.  A sense around M&A

Let’s face it, the cannabis industry has also seen as much consolidation as it has new blood over the past decade. Given the barriers to entry to licensing in certain states and cities as well as the advent of MSO expansion, industry M&A is at an all time high. Therefore, cannabis businesses of all sizes should get to know the basics of cannabis M&A, in case they find themselves offering to buy or sell a cannabis business.

Of course, the rules around changes of ownership will vary in every single state and there are other insidious guidelines and regulations that are attendant with things like license transfers and approvals of new owners. For more on cannabis M&A, see here, here, and here.

     6.  Understanding of taxes

I am floored when I still see pitch decks or pro formas for cannabis companies that completely fail to mention IRC 280E or the generally high state tax burden born by cannabis companies. I think folks still get caught up in the exciting swell of becoming the next Jack Daniels as federal legalization looms, and they completely forget about the insanely onerous impact of cannabis taxation at the federal (and even state) levels. It’s 2022, folks–IRC 280E isn’t going away without federal reform, and state cannabis taxes are not going down. Do your homework and don’t get caught with your pants down on the cannabis tax burden.

   7.  Banking

People forget that FinCEN issued guidance to financial institutions in 2014 about how to bank the industry. In all reality, if you’re in a state with “robust regulation” and you have a license, there’s likely a financial institution that will bank you that’s following those guidelines.

If you’re not able to get a bank account at this point, you should be asking yourself if you’re doing everything you can around compliance and/or if you’re in a state that doesn’t scare off financial institutions because their rules are just too loose around licensing and compliance. It certainly can be done otherwise.

     8.  Understanding of contracts

If you’re still doing handshake deals for your commercial cannabis contracts, you’re in the dark ages. At the inception of medical cannabis, lots of interesting legal advice was given around keeping things verbal in order not to exacerbate creating a criminal record. It just isn’t the case anymore that that’s a serious risk given state legalization and the fact that the feds are hands off.

Without written agreements in place, we often see incredibly bad behavior between licensees and third parties. There’s also little to no chance that you’ll get any real kind of investment in your cannabis company without written contracts. Do yourself a favor then, and get it in writing (and be sure to avoid the boilerplate, too).

       9.  Litigation prep

No industry is safe from litigation. Whether it’s partnership disputes, infringement cases, contract breaches, or personal injury, all businesses must face the prospect of taking or going up against legal action at some point in their life cycle. Cannabis is clearly no different.

Over the past decade, we’ve seen and litigated a multitude of commercial disputes, from ownership fights to land use issues to landlord/tenant disputes and even administrative litigation against state licensing regulators. Just like the recall planning, cannabis businesses need to be mindful of commercial litigation. Licensees should realize that just because cannabis is federally illegal does not in any way mean that you can’t otherwise be successfully sued.

     10.  Advocacy and government relations

Cannabis has really become like other industries in some ways. And because it’s highly regulated, it interfaces with state and local governments daily. This means cannabis companies also need to invest in advocacy and governmental relations a good amount of the time.

Regulators have immense power to change, create, and eliminate regulation, which means that private interest lobbying can be done, for better or worse. Whether you care about social equity, changing prohibited products, advertising and marketing, license caps, or anything else, cannabis licensees should know where and when to pull political levers in 2022.

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Current and Future Cannabis Taxes

Last week, I participated on a great panel about current and future cannabis taxes called “Solving the Cannabis Tax Puzzle: Approaches for an Emergent Industry” hosted by Ohio State University Moritz College of Law’s Drug Enforcement and Policy Center and the Center for New Revenue. The panel covered current and future cannabis taxes from a variety of angles, including a discussion around an effective cannabis tax basis and the overall cannabis tax burden that should be shouldered by cannabis businesses.

When asked to join the panel, I felt out of my league. I am not a tax attorney and am no tax expert outside of knowing enough about the impact of IRC 280E to be a little bit dangerous. However, I mostly spoke about how current state cannabis taxes impact my clients.

Given that I’m in California, the cannabis tax burden is a major topic of the moment. The latest cannabis tax gripe here occurred when the California Department of Tax and Fee Administration (“CDTFA”) announced its increase to current cultivation tax rates. This decision is not optional. CDTFA must undertake an annual increase in line with inflation in accordance with state law. In response to this increase, a variety of licensees planned to engage in a sort of tax revolt, which, in our opinion, has very little chance of working (outlined here).

California cannabis taxes are undoubtedly high (although not the highest in the country), but neither the California Department of Cannabis Control nor the CDTFA can do anything about that. Both agencies operate within a legal boundary created by voter initiatives or state lawmakers. Under Prop. 64, California’s adult use cannabis law, it would take a 2/3 majority vote in each chamber of the Assembly to actually change the cannabis tax laws.

On the panel, my position was that cannabis taxes are going to be a reality of the industry forever, for a variety of reasons. Panelists batted back and forth about whether negative externalities exist that justify an increased cannabis tax rate (i.e., the social cost of legalization). And we also discussed how to best tax cannabis, whether that’s by weight, THC content/potency, or product type. And most fascinating of all, at least to me, was Pat Ogleby’s take that, in reality, IRC 280E is one of the best tools to curb “Big Marijuana” companies (if that’s what policymakers want) because they cannot deduct the majority of their expenses, including for advertising, marketing, and promoting their products.

One thing is clear to me from this panel: like almost everything else in cannabis, there’s no gold standard around hitting a sweet spot for state cannabis taxation. The cries of the industry are that taxes are generally too high and therefore promote the illegal market and undermine licensed competition. But the tax game is just a small piece of the cannabis legalization puzzle. Other issues like overall access, local control, and effective enforcement against illegal operators must also come together in order to prop up and sustain licensees.

Surely, state cannabis taxes will continue to evolve, and hopefully for the better for both the industry and public policy.

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New York’s Proposed Cannabinoid Hemp Regulations

New York’s proposed cannabinoid hemp regulations are a big deal for the State’s 700 or so hemp farmers, and the greater cannabis industry. This post will explain how we got here, what the regulations provide, and what happens next.

How New York arrived at the proposed cannabinoid hemp regulations

For the past two months, the New York Cannabis Control Board (the “CCB”) and the Office of Cannabis Management (the “OCM”) have been busy implementing the State’s Cannabinoid Hemp Program (the “Program”). If you read this blog, you may recall that under the Marijuana Regulation and Taxation Act (the “MRTA”), the CCB is tasked with implementing cannabis regulations (adult-use program and cannabinoid hemp program) whereas the OCM is to administer these regulations.

In October 2021, the OCM took over the Program, which was originally overseen by the Department of Health (the “DOH”).

On November 3, 2021, the CCB adopted the temporary regulations released by the DOH in July 2021.

Then, on December 16, 2021, the CCB filed amendments to these regulations that “are intended to create new value-added opportunities for farmers and empower New Yorkers to make informed choices in the CBD marketplace.”

The four main changes in the proposed cannabinoid hemp regulations

1.     The Establishment of a new license category for “Cannabinoid Hemp Farm Processors.”

This new type of license would allow the cultivation of up to 1,000 pounds of dried hemp annually from which the licensee could manufacture flower products. If adopted on their current form, the regulations would exempt applicants from showing Good Manufacturing Practices (GMP) would be used in the manufacturing of flower product and from adopting GMP standards for the manufacture of these products.

2.     The addition of a new definition for “craft” cannabinoid hemp products.

The term “craft” means “a cannabinoid hemp product manufactured from hemp grown by a licensed hemp grower who grows less than 1,000 pounds of dried hemp annually and the hemp is hand trimmed, hang dried and if a cannabinoid hemp flower product hand packaged.”

3.     An increase of the acceptable THC concentration of intermediary hemp extract.

If this proposed regulation were adopted, licensed cannabinoid hemp processors would be permitted to possess and sell intermediary hemp extract that contains up to 5% THC – the current THC limit is currently capped at 3%.

4.     Revisions to the Labeling and Packaging Requirements.

The proposed changes include:

1. 1. Removing the labeling requirement that the font size of information in the supplement or nutritional fact panel be larger than other information on the product label.
   2. Changing the per serving milligram (mg) cap for dietary supplement products from 75 mg to 100 mg.
   3. Allowing out-of-state manufacturers to omit the label warning that the product may cause a consumer to fail a drug test if the product is manufactured using isolate or broad-spectrum hemp extract.
   4. Removing the requirement that cannabinoid hemp products be shelf stable.

Effects of New York’s proposed cannabinoid hemp regulations

So what do these proposed regulations mean for companies currently manufacturing and selling their cannabinoid hemp products in New York? First and foremost, these companies should continue to ensure compliance with the existing rules, which include specific manufacturing, testing, labeling and packaging requirements. Second, they should keep an eye on the rulemaking process, where permanent rules will ultimately issue. And third, if hemp companies take issue with any of the proposed regulations, these stakeholders should take advantage of the public comment period. During that time, stakeholders will be allowed to convey their concerns with the CCB and attempt to influence their final version.

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Former Adult Pastor Launches ‘Christian Cannabis’

Craig Gross, an entrepreneur, adult pastor and founder of XXXChurch.com, recently announced that his brand, Christian Cannabis, launched a line of CBD-rich cannabis products on January 27.

The brand will offer high CBD, low THC strains developed for Christian cannabis consumers while educating them about the plant and its medicinal benefits, as well as sharing how they can use it spiritually, too. “Christian Cannabis wants to shine a light on a topic Christians are avoiding—their cannabis use—and invite them to explore it without fear, shame, or judgment,” the press announcement states.

Craig (not to be confused with Craig X, a separate cannabis-friendly pastor) believes that aside from the emotional and physical effects, there is potential to tap into a spiritual connection with cannabis as well.

“There is, without a doubt, a spiritual side to plant medicine,” said Craig Gross. “There are long-held stigmas and doubts regarding its use, especially in the Christian community, and it’s preventing spiritual growth. It’s time we acknowledge that God created plant medicine and Christians should have access to quality, safety, cannabis products made just for them.”

Craig’s wife and Christian Cannabis Co-founder Jeanette Gross also released a statement, explaining that cannabis wasn’t on her radar until she was diagnosed with cancer. “I was faced with one of the most difficult situations of my life—trust plant medicine, which I always thought would alter my mind and make me feel out of touch with reality, or pharmaceutical drugs I knew would?” said Jeanette Gross, co-founder of Christian Cannabis. “I turned to cannabis and not only did it relieve my physical pain, it helped me open up spirituality. It provided me a way of coping with the depression, anxiety, and waves of emotions that accompany being diagnosed with cancer and it was key to my recovery after.”

Christian Cannabis, the logo of which features a dove carrying a cannabis leaf while in flight, will offer pre-rolls, as well as a cream, patch, balm, topical spray, oil, tincture and fruit chews. These products reportedly include biblical ingredients, such as frankincense and myrrh.

Craig announced the Christian Cannabis brand launch back in April 2019 at Coachella—the same year that both the religious holiday of Easter and 420 fell on the same day. In a YouTube video made for the launch, he described his goals for the project. “My hope is to encourage people who follow Jesus and open our eyes to some misunderstandings that we have about this controversial plant,” he said in the video.

In a June 2019 interview with DOPE Magazine, he went into great detail regarding his inspirations behind the idea, how he discovered cannabis later in life at 37 years old, his approach to the subject of sex addiction with XXXChurch.com, and the ongoing stigma that affects Christians and cannabis consumption. “For cannabis—the very first time I [consumed] was in 2013, and I wanted to talk about it. Everyone’s like, ‘Craig, if you talk about this now, you’ll lose everything you’ve built, and it’s not time,’” he shared.

“I came to cannabis in 2013 because it was the worst year of my life. I’m healthy, I’ve never broken a bone in my body, and [in 2013 I am sitting] in a situation where my dad had died, my wife was diagnosed with ovarian cysts, I didn’t know if I was grieving or not and I didn’t know how to deal with death. Then I started getting headaches, and then I start chasing doctors, and they just keep handing me more prescriptions,” Craig said. He admits that he skipped church one day to watch CNN’s Weed documentary in 2013, featuring Sanjay Gupta.

More recently, Craig spoke with the New York Times in December 2021 about the psychedelic retreats he put together in Northern California. During the pandemic, he shared that he and his family lived at a psychedelic retreat called “Rainbow Ridge” in Santa Cruz (valued at $1.3 million), where he was “offering 30 psilocybin retreats for a handful pf people at a time,” and he never charged participants. Since then, he has sold that property, and also cashed out his retirement fund.

Christian Cannabis products are projected to release sometime in California and “additional states” in 2022, with plans to develop a CBD-only line that will eventually be available nationwide.

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Tennessee Lawmakers want Statewide Marijuana Legalization Vote

Two Tennessee state lawmakers this week proposed legislation that would put ballot questions regarding the legalization of marijuana before voters in this year’s general election. The legislation was introduced by a bipartisan duo of state legislators, Democratic Senator Sara Kyle and Representative Bruce Griffey, a conservative Republican.

Attempts to legalize medical cannabis in Tennessee have seen some success in legislative committees only for proposed legislation fail to come to a vote by the full House of Representatives. But some prosecutors have adopted a more lenient stance to cannabis, including Davidson County District Attorney General Glenn Funk, who has instituted a policy to decline to file charges in possession cases involving a half-ounce of cannabis or less. Griffey believes that it is time to give statewide marijuana legalization another look.

“We’ve been wrestling around with this for years and years now,” Griffey told the Tennessee Lookout. “A bunch of jurisdictions have taken a step to legalize it. There’s certainly some valid arguments, is marijuana any worse than alcohol in certain situations?” 

The legislation from Griffey and Kyle, Senate Bill 1973/House Bill 1634, was introduced in the state Senate on Thursday. Under the bill, county election commissions would be directed to include three non-binding questions on this year’s general election ballot. The bill also requires the Tennessee secretary of state to compile the results from the county elections, characterized as a “public policy opinion poll” in the summary of the legislation, and forward them to the members of the state legislature.

Vote Would Not Legalize Pot Outright

The vote, however, would not legalize cannabis by itself. Under the Tennessee state Constitution, ballot measures are not binding and do not by themselves create new legislation. But they can serve as a way to gauge the views of voters on controversial issues, potentially giving lawmakers guidance to craft new laws.

The bill from Kyle and Griffey would pose the following three questions to Tennessee voters on the November 2022 general election ballot:

1. Should the state of Tennessee legalize medical marijuana?
2. Should the state decriminalize the possession of less than one ounce of marijuana?
3. Should the state legalize and regulate the commercial sales of recreational marijuana?

Kyle, who has supported efforts to legalize medical cannabis in Tennessee, said that she welcomes the chance to measure the “community support” for the ballot questions.

“I would vote yes on every one of these,” she said.

Kyle has said that her support for cannabis reform stems from the belief that people should be able to use medical cannabis, adding that many of the constituents of her district in Memphis have sickle cell disease. The Democratic senator also noted that convictions for minor cannabis offenses can have long lasting consequences, including difficulties obtaining employment and educational or social benefits. 

“Let’s remove that barrier,” Kyle said. “We’re talking about less than an ounce. That’s pretty much personal use.”

Griffey was unable to convince a Republican senator to sponsor the legislation in the upper house of the Tennessee General Assembly, leading to the bipartisan pairing with Kyle. Griffey agrees that lawmakers should get input from the electorate to guide legalization.

“To me there’s no downside to it, very minimal cost,” he said Wednesday. “Let the Tennessee voters at least express their opinion in an unbiased manner so all of us as legislators have a sense of what the voters would like us to do.” 

Public opinion polls have shown that 70 percent to 80 percent of Tennessee voters support decriminalizing marijuana and legalizing the medicinal use of cannabis, but Kyle is not sure if lawmakers agree.

“On those questions, I think you’ll get a high yes,” she said. “But I don’t know if the Legislature’s ready.”

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Weed Sales Outpace Alcohol for First Time in Massachusetts

Cannabis tax revenue in Massachusetts is performing better than projected, over four years into the state’s adult-use market. According to the most recently available data, Massachusetts reported collecting $74.2 million in marijuana excise taxes—much more than the $51.3 million in alcohol excise taxes that were collected. 

Alcohol sales continue the downward trend that began two decades ago, according to data collected by Gallup polling, despite a temporary sharp uptick in alcohol sales amid COVID. Analysts have wondered if there is a correlation between cannabis reform and alcohol sales.

The trends seen in Massachusetts are no different. Fortune reports that alcohol excise taxes imposed on each gallon of alcohol produced also remained flat over the last five years, at $0.55 per gallon of wine, and $4.05 per gallon of hard alcohol. 

Massachusetts collected over $112 million in adult-use cannabis sales excise tax revenue in 2021—206 percent higher than projected—according to a Monthly Public Meeting presentation from data from the state’s Cannabis Control Commission. 

“This number also underscores the entire agency’s tireless efforts, particularly those of our hardworking staff, to thoughtfully regulate a safe, accessible, and effective adult-use marketplace that keeps critical tenets of our mission—public health, public safety, and equity, among others—front of mind,” Commission Executive Director Shawn Collins said in a statement on January 25. 

The state charges an excise tax of 10.75 percent on the projected retail price of recreational cannabis in addition to a 6.25 percent state sales tax, plus a local tax of up to three percent. 

Cannabis sales are doing much better than anticipated, despite all of the hiccups along the way such as COVID. But analysts say the surge in cannabis sales in Massachusetts comes at no surprise.

Vivien Azer, a Wall Street research analyst and managing director at Cowen who covers the emerging cannabis sector told local news station WCBV that when states convert from medical cannabis to adult-use, it typically leads to a doubling or even tripling of revenues “almost overnight.”

Kicking off recreational cannabis sales in any state is something of a spectacle to be celebrated.

Mikayla Bell, community outreach manager for NETA, one of the largest cannabis retailers in the state. “I think that people are looking for an alternative to make them feel better,” Bell told WCBV. “Oftentimes people are turning to alcohol for relief. And now they found another product with without the hangover, without the calories.”

Cannabis sales in Massachusetts high a milestone last September when sales in the state eclipsed $2 billion.

During the first year of cannabis sales, from November 2018 through 2019, 33 cannabis retailers generated $393.7 million in gross sales. Sales for all of the 2019 calendar year reached $444.9 million. 

In 2020, 91 adult-use cannabis retailers tallied $702 million in gross sales, despite being closed for two months due to the pandemic.

Most states impose a relatively high excise tax rate on cannabis. California’s cannabis tax hike didn’t go over well with legacy growers, for instance. But cannabis isn’t the only industry that faces steep taxes.

Alcohol taxes in Massachusetts could soon see a hike as well. State Representative Kay Khan filed a bill to double the excise taxes on beer, wine and liquor with H 2973. The state spends $2.6 billion each year to combat alcoholism and addiction, and should consider making the industry pay for that themselves.

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OCS: 5 unique cannabis products new in Ontario

Five new and unique products from the OCS’s latest drop that you should know about.

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How Virgil Grant shaped social equity for the city of Los Angeles

Find out how Virgil Grant made his stamp on Los Angeles' social equity program despite setbacks and incarceration.

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Cannabis Business Value

I spend a lot of time with business owners discussing their cannabis business value. Often, they come to me when they realize they have a problem with their current or former business partner. We all like to assume our business relationships will continue indefinitely as the venture increases in value and the owners see eye-to-eye on everything.

In many startup business ventures, but especially in the cannabis context, it is not unusual for founders to have a falling out. Sometimes the falling out occurs very early in the relationship and the co-founder disappears for months or years (see here). The statute of limitations in each U.S. state means that your long-lost business partners may be out of sight but should not be out of mind until the statute of limitations period lapses (often ~6 years).

Determining cannabis business value: from a valuation expert

In an ideal world, the formula and criteria for determining your cannabis business value is clearly set forth in your operating agreement or shareholder agreement. You can be as creative as you like, including using multiples of gross or net earnings, valuation discounts, and flexible payment structures and timing.

I recently asked a friend who is a cannabis valuation expert for his recommendation on language to use in an operating agreement to avoid fights about business value. He said that a “battle of the valuation experts” never reflects the entity’s true value or leaves either buyer or seller satisfied. Choosing a single valuation expert and putting the buyer and seller owners in a room together for their interviews cuts out a lot of ambiguity, uncertainty, puffery, and obfuscation.

Things get very messy when there is no operating agreement. The following is an amalgamation of our advice regarding how to value a minority cannabis business interest and deal with a problematic minority owner where you have no operating agreement or no valuation methodology in your operating agreement.

Determining cannabis business value: a case study

I think offering him $XYZ is a good starting point. You know his temperament better than I do. Based on what I know about his track record, you may end up paying $XYZ or something more.

Keep in mind that a negotiated settlement with him is much cheaper than a fight in court or even hiring one or more valuation companies to agree upon the value of his X%. Also keep in mind that you’ll need to disclose his ownership interest if you decide to shop around the company for sale if you cannot buy him out before then.

Having multiple entities involved complicates this analysis, but we should discuss further what was explicitly promised and documented in an email to him. Then we need to consider what kind of assumptions he may have made about his investment in this subsidiary entity vs the group of entities.

Think about it this way. If an investor gave you $XYZ at the beginning of a business venture in exchange for X% of that business entity, they would expect to receive the full benefit of that X% ownership and everything the business does from that point on.

They would also have some voting rights (presumably X%) from the outset that would give them some input into how the company is operated, as well as access to company information. At X% they would get notice and participation rights in meetings, financial oversight, and probably veto rights on major company issues (like whether to engage in a merger, sell most of its assets, change the business’ focus, etc).

He has not had the benefit of any of those normal investor rights for the past Z years. All of these “normal” investor rights – including any unexpected deviations (like lack of voting or information rights) – would have been detailed in both an initial investment contract (we call this a subscription agreement) and the company’s operating agreement. You had none of those agreements in place with him.

Without these agreements in place, some of these terms are governed by the LLC Act, but other terms are undefined or at least indeterminate. They can only be concretely determined by your recollection and his (which as you can guess are often drastically different).

We can confirm the terms of his ownership by an exhaustive review of emails and text messages that you can locate. You can see how this could spiral out of control into litigation if you cannot reach an agreement now about what you agreed to Z years ago regarding his investment and ownership rights – or at least what is fair to him now.

You need to think about what kind of input he would have provided over the past Z years if he had been involved, even as a passive owner. If I am his creative transactional lawyer, then I am going to argue this:

• He is entitled to Z years’ worth of X% of your parent company’s net profit that is attributable to this company’s operations.
• He is entitled to X% of this company’s value, including assets that have been transferred over the past Z years.
• To determine the full extent of his ownership value, we need a full valuation of all related entities. This valuation needs to be done by an appraiser acceptable to him and paid for by the parent company. This is because the proper valuation must be based on ongoing enterprise value rather than the bare asset value of this entity alone. It does not make sense to value the company only as the value of its assets sold as part of an entity liquidation (balance sheet value or lower) because that does not reflect the vibrant and profitable conglomerate value, of which this company is a part.
• We also need a full financial audit of all related entities for the past X years, paid for by the parent company, to see if any other company assets or revenue have been diverted to related entities.

Cannabis business value: conclusion

It is very easy for cannabis business valuation issues to spiral out of control, requiring expensive competing valuations and potentially more expensive litigation (see here). Owners who prioritize putting a comprehensive operating agreement or shareholder agreement in place at the beginning of the relationship will thank themselves later when the invariable business dispute arises among the founders.

For related posts, check out the following:

• Marijuana Business Valuations: Still Mostly and Art, Not a Science
• Your Marijuana Business: What’s it Worth?
• Your Marijuana Business: What’s it Worth? (Part 2)
• Cannabis Litigation: What is My Marijuana Dispensary Worth?
• Oregon Cannabis: What is My Partial Marijuana Dispensary Ownership Interest Worth?
• Cannabis Business Valuation: Eli Neal of 4 Corners Financial Forensics

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Learn to love autoflowers with top-tier genetics from Humboldt Seed Company

Today’s autos can compete nose-to-nose with regular cannabis seeds in both potency and yield—just ask Humboldt Seed Company.

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Decriminalize Nature and Students For Sensible Drug Policy Create a Community Healing Alliance

Two advocacy organizations are coming together to decriminalize entheogens and continue fighting against the War on Drugs. Decriminalize Nature (DN) and Students for Sensible Drug Policy (SSDP) announced in a press release on January 27 that they are partnering up to target entheogen decriminalization and put an end to the War on Drugs by creating a Community Healing Alliance.

Both of these organizations have a longstanding history with drug advocacy, and this collaboration will no doubt strengthen the cause. As SSDP Board Member and also co-director of DN Michigan, Myc Williams believes that this partnership is essential to push progress forward. “A national alliance of these two organizations is a unique opportunity to tackle the harms of the drug war from all sides,” Williams said. “We are paving a path of unity that addresses both the injustices of current drug policy and provides accessible avenues for healing from the traumas that have occurred as a result.”

Many other people involved in this cause, such as SSDP Executive Director Jason Ortiz, are confident that this is the dawn of a new campaign. “We are uniting today to build the power needed to correct the profit driven framing being forced on us by corporations and their countless lobbyists,” said Ortiz. “This alliance will pair youth leaders with community practitioners to ensure that decriminalization and reparations are the priority for the drug policy movement as we end the disastrous and malicious war on drugs. Wherever they have a lobbyist, we will have an organized community ready to meet them.”

Additionally, many other DN and SSDP members of various roles provided hopeful statements about the Community Healing Alliance. One of the founding members of DN, Larry Norris, mentioned that DN and SSDP have worked together before in the past, but this official move to bind together will bolster support even more. Likewise, DN National Board Member Julie Barron shared her excitement to see what the two organizations will accomplish for people who are in need of support and healing.

Through many research studies, there is evidence that incarceration for drug possession or use does not improve public health and safety. A study conducted in January 2010, entitled “Treating Drug Abuse and Addiction in the Criminal Justice System: Improving Public Health and Safety,” suggested that convicting people of drug-related crimes simply spotlights the need to focus on other ways target the problem. “Punishment alone is a futile and ineffective response to drug abuse, failing as a public safety intervention for offenders whose criminal behavior is directly related to drug use,” the study concludes. “Addiction is a chronic brain disease with a strong genetic component that in most instances requires treatment. The increase in the number of drug-abusing offenders highlights the urgency to institute treatments for populations involved in the criminal justice system.” Furthermore, there are studies suggesting that prison therapy to treat drug addictions can be harmful, not helpful, to an individual’s recovery.

Both DN and SSDP have accomplished many things over the years. DN is newer to the advocacy scene, having been founded in Oakland in 2019, but its efforts have grown rapidly and there are chapters in over 50 cities in the U.S. Over these last few years, the organization has helped decriminalize entheogens in 14 cities. Its mission is to improve the lives of people interested in using entheogenic plants as a natural alternative to medical treatment, and also expand access by advocating for decriminalization “through political and community organizing, education and advocacy.”

Many chapters have been actively working on decriminalization efforts in their jurisdictions since last year. The Decriminalize Nature Boulder Chapter in Colorado has recently been working to change the language of a decriminalization effort aimed for the ballot next year. Decriminalize Nature Michigan spearheaded a signature gathering campaign last year.

SSDP on the other hand was founded in 1998, which now includes thousands of youth members and over 100 chapters throughout the U.S. The organization seeks to empower new generations to not only learn about and participate in politics, but to embolden their advocacy by fighting against causes that might harm other students or youth members in general.

To support this grassroots effort, feel free to learn more about what these organization stand for or donate to the cause for SSDP or DP.

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Colorado Springs Group Launches Bid to Legalize Recreational Pot Sales

A group of business and community leaders in Colorado Springs, Colorado has launched a bid to legalize sales of recreational cannabis in the city, arguing that tax revenue generated by purchases of legal cannabis by local residents should stay in the community.

Colorado voters legalized sales of recreational cannabis with the passage of Amendment 64 in 2012, and regulated sales began in the state two years later. But Colorado Springs banned recreational cannabis sales in 2013, although the city is home to more than 100 medical cannabis dispensaries. 

Colorado Springs Ballot Measure Filed

On Monday, the group Your Choice Colorado Springs filed ballot language for a proposed voter initiative that would allow the city’s existing medical marijuana dispensaries to apply for licenses to sell adult-use cannabis. In a statement from the group, the coalition of community and business leaders said that Colorado Springs residents are forced to travel to nearby cities that allow recreational sales. As a result, the city is leaving millions of dollars in potential sales tax revenue on the table, according to Your Choice Colorado Springs.

“It’s hard to believe just how much tax revenue politicians have robbed our city of over the past decade,” said Cliff Black, an attorney and the lead elector petitioning the city for adult-use cannabis sales. “Recreational marijuana is 100 percent legal for every single adult living in the city. Yet the city gets none of the benefits. Instead, residents drive and spend their hard-earned money in Manitou, Pueblo, and even Denver, and then bring their marijuana right back home to Colorado Springs. With this initiative, we are asking voters if they want to keep their tax dollars local.”

The group noted that Manitou Springs is the only city in El Paso County that permits recreational cannabis sales. Thanks to limited competition and high local demand, the two dispensaries in Manitou Springs are among the most profitable in the state.

Voters in Colorado Springs approved Amendment 64 by a margin of about 3,000 votes, according to Westword. Activists have made previous bids to legalize recreational cannabis sales, but have failed to gain the support of a majority of the city council. Additionally, Colorado Springs Mayor Mayor John Suthers, who once served as state attorney general, has been a vocal opponent of recreational marijuana sales since taking office in 2015.

“When Colorado began adult-use sales of cannabis in 2014, we anticipated that our local officials would respect the will of the voters and craft a regulatory structure allowing recreational sales,” said Karlie Van Arnam, a mother, small business owner and former candidate for city council. “But instead, year after year, politicians have declined to provide a regulatory structure to collect precious tax revenue for our city. Today, Colorado Springs residents are taking this decision back into our own hands to finally give ourselves the choice to vote on allowing recreational sales in our community.”

Organizers Hope for November 2022 Vote

If the proposed ballot language submitted this week by Your Choice Colorado Springs is approved by the City Initiative Review Committee, the group will have 90 days to collect the approximately 33,000 signatures needed to place the initiative on the ballot for the November 2022 general election.

To comply with the city’s cap on retailers, the ballot measure would only permit existing medical marijuana dispensaries to sell recreational cannabis with state approval. The proposal would not allow new cannabis dispensaries to open in Colorado Springs.

Sales tax revenue generated by recreational cannabis sales in Colorado Springs would help fund public safety improvements, an expansion of mental health services and support for military veterans, according to the Your Choice Colorado Springs website. Recreational cannabis revenue would be subject to an annual audit by a citizen committee “to ensure that money is being spent where voters approved,” according to the group.

“It’s time for Colorado Springs to catch up with the times and make sure we’re keeping the tax revenues that rightfully belong to the people of Colorado Springs,” Jimmy Garrison, a veteran and founder of a PTSD retreat and camp for veterans Lost Creek Ranch said in a statement for Your Choice Colorado Springs. “As a veteran, I’m thrilled to see that a portion of these tax revenues will support our American heroes and my fellow veterans who paid a price for their service and now struggle with PTSD.”

An informal survey conducted by a local television news station last year found that a majority of respondents favored legalizing recreational marijuana sales in Colorado Springs. And Black said that organizers of the ballot initiative have also collected data that shows support for the issue.

“We’ve done the polling, and believe the voters are in favor of allowing recreational sales in Colorado Springs,” he said.

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New York Expands Medical Marijuana Eligibility

This week, New York expanded eligibility for the state’s medical cannabis program to include more patients, according to an announcement from state regulators. New York’s Office of Cannabis Management said on Monday that the state had launched a new medical marijuana certification and registration system that is “easier to use and expands the eligibility criteria for patients who can benefit from medical cannabis.”

Under the new eligibility criteria, practitioners will be allowed to issue medical marijuana certifications to any patient they believe may benefit from the medicinal use of cannabis. Previously, the use of medical cannabis was restricted to patients with one or more qualifying medical conditions. The Office of Cannabis Management (OCM) noted that the change is consistent with the Marijuana Regulation and Taxation Act (MRTA) passed by lawmakers last year.

In addition to legalizing the recreational use of marijuana and establishing a framework for adult-use cannabis sales, the MRTA shifted the regulation of New York’s medical marijuana program from the state Department of Health to the OCM. Tremaine Wright, the chair of the state Cannabis Control Board, applauded the progress made by state marijuana regulators.

“It is terrific to see the Medical Cannabis Program expand so vastly with the launch of the new certification and registration program and the ability of practitioners to determine qualifying conditions as included in the MRTA,” Wright said in a statement from the OCM. 

Previously, the OCM announced additional changes to the state’s medical marijuana program, including allowing the sale of cannabis flower and a permanent waiver of registration fees for patients and caregivers. Regulators also expanded the list of caregivers qualified to certify patients for medical marijuana to include any practitioner who is licensed to prescribe controlled substances in New York, such as dentists, podiatrists and midwives. 

Other changes to New York’s medical marijuana program made by the OCM include increasing the amount of cannabis that may be dispensed at one time from a 30-day supply to a 60-day supply and streamlining the approval for institutions such as hospitals, residential facilities and schools to become designated caregiver facilities to hold and dispense products for patients. Additionally, the state Cannabis Control Board has accepted public comments on proposed regulations to govern the home cultivation of cannabis by medical cannabis patients and is currently completing an assessment of the comments submitted for publication in the state register.

“The new cannabis industry is taking shape as we continue to implement the MRTA and provide greater access for New Yorkers to a medicine that we’re learning more about every day,” Wright said. “We’re continuing to move forward swiftly and today’s system launch follows our achievements that already include adding whole flower medical product sales, permanently waiving $50 patient fees, and advancing home cultivation regulations, among others.”

Patients certified through the new certification and registration system will be issued their certification from the OCM. Certifications previously issued by the Department of Health will continue to remain valid through their expiration date, when new certifications will be issued by the OCM.

Cannabis Community Applauds Expansion of Medical Marijuana Program

Dr. Rebecca Siegel, a clinical psychiatrist and the author of The Brain on Cannabis: What You Should Know About Recreational and Medical Marijuana, said that expanding access to medical cannabis is appropriate, because cannabis can be beneficial for a wide range of medical conditions.

“I think this gives practitioners in all types of medicine just one more tool to add to their belt in order to effectively treat patients,” Siegal wrote in an email to High Times. “Most importantly, I think this broadens the opportunity for more patients to have access to cannabis from their own personal trusted physicians who can better monitor their conditions and use of marijuana. This is way better than patients trying to manage it on their own.”

Sharon Ali, the Mid-Atlantic regional general manager for cannabis multi-state operator Acreage Holdings, said that expanding access to medical marijuana is a significant advancement for New York, where the company operates four The Botanist retail locations.

“New York has the opportunity to implement lessons learned from earlier adopters of legalization, and we’ve seen from other states that one of the most important foundations for a successful adult-use program is a robust medical program,” Ali wrote in an email, adding that it is “an exciting time for New York as the cannabis program continues to evolve in a positive direction.”

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Mississippi Lawmakers Finally Agree on Medical Cannabis Bill

After more than a year of disagreement, back-and-forth and false dawns, Mississippi lawmakers may have finally produced a medical cannabis bill that will become law.

The Clarion Ledger reported that “members of the Mississippi House and Senate on Tuesday announced a final agreement on a bill to create a medical marijuana program in the state.”

Crucially, versions of the bill that passed out of both chambers did so with veto-proof majorities. 

As expected, the central area of compromise centered “around how often and how much cannabis a medical marijuana patient can purchase,” according to the Clarion Ledger.

Under the bill that passed Tuesday, patients would be allowed “to purchase 3.5 grams of cannabis up to six times a week, or about 3 ounces a month,” the Clarion Ledger reported, which represents a “a decrease from the 3.5 ounces a month the Senate originally passed and the 5 ounces a month voters approved in November 2020.”

The purchasing limits represented the primary area of dispute between Mississippi lawmakers and the state’s Republican governor, Tate Reeves, who had said that his preference was for the limit to be set at 2.7 grams.

Reeves has threatened to veto a bill he deems unsatisfactory, but he may have been dealt a checkmate by members of the GOP-dominated legislature.

As Misssissippi Today explained, should the bill be passed on to Reeves, he “could sign the bill into law, veto it, or let it become law without his signature—a symbolic move governors sometimes do to show they disagree with a measure but will not block it.”

“I think the governor is going to sign it,” Ken Newburger, director of the Mississippi Medical Marijuana Association, told Mississippi Today, adding that the bill will provide patients with a “better quality of life” and that the program will serve as an economic boon for the state as well.

The announcement of the agreement came from the two lawmakers who have taken the lead on the effort to get medical cannabis over the line in Mississippi, who are state Senator Kevin Blackwell and state House Representative Lee Yancey, both Republicans.

“This has been a long journey,” Yancey said at a Tuesday press conference, as quoted by Mississippi Today. “It looks like we will finally be able to provide relief for the chronically ill patients who suffer so badly and need this alternative. I congratulate Sen. Blackwell—he’s carried this bill most of the way by himself.”

Yancey’s bill easily passed the state House last week, a week after the state Senate passed its own version, setting the stage for lawmakers from both chambers to negotiate a compromise.

An overwhelming majority of Mississippi voters approved a ballot initiative in 2020 to legalize medical cannabis, but that triumph quickly gave way to a long series of setbacks for advocates in the state.

The Mississippi Supreme Court struck down the ballot initiative last year, citing a technicality that rendered it in violation of the state constitution. The decision by the court prompted lawmakers to begin work on drafting a bill to replace the defunct law. 

They offered up a bill in the fall, when the legislature was out of session, but Reeves continually balked at calling a special session. 

“I am confident we will have a special session of the Legislature if we get the specifics of a couple of items that are left outstanding,” Reeves said at a press conference in October. “Again, we have made great progress working with our legislative leaders.”

Reeves was against the ballot initiative, but he said last year that he supports “the will of voters” and encouraged lawmakers to produce a bill to replace the one struck down by the Supreme Court.

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Costa Rica’s Hemp and Medical Cannabis Bill Stalls

Costa Rica’s proposed hemp and medical cannabis law was passed by the Legislative Assembly on January 13, after a 29-10 vote. But what should have been a landmark accomplishment for cannabis legalization in the region has been overshadowed by President Carlos Alvarado’s refusal to sign Bill No. 21388 into law.

According to President Alvarado, there are concerns that the new law could run afoul of drug control treaties to which Costa Rica is a party, such as the Single Convention on Narcotic Drugs of 1961. In fact, on January 10 the International Narcotics Control Board requested additional information about the bill, while reminding the Costa Rican government of its obligation to strictly regulate medical cannabis.

Proponents of Bill No. 21388 point out that Costa Rica’s Sala Constitucional (Constitutional Court) has already ruled that it does not violate the drug treaties signed by Costa Rica. In the face of both legislative and judicial approval of the proposal, a veto of the hemp and medical cannabis bill would constitute a “very grave error, not just for the Executive, but also for the legitimacy of the democratic political system.”

In any case, President Alvarado has not indicated that he plans to veto the bill. Instead he asked the Legislative Assembly to “modify” the proposed law, saying on January 21 that his administration would present a “counterproposal.” This has further angered supporters of the hemp and medical cannabis bill, who insist the president must either sign or veto. The Legislative Assembly could override a veto if two-thirds of deputies vote in favor.

To be sure, this is not the first time we have seen cannabis legislation hit roadblocks in the region due to concerns over international treaty obligations. At the same time, there appears to be considerable reticence on the part of Costa Rica’s officialdom to proceed with legalization, while the expected opposition to cannabis reform from social conservatives is also present. While being a good international citizen may be partly motivating the Costa Rican government’s stance, it is possible that other political factors are at play.

We have written about Costa Rica’s proposed law before, noting the reasons why legal hemp and medical cannabis in the Central American country is an exciting prospect. Hopefully the impasse between the Legislative Assembly and the Executive can be sorted out, and a bill that has long been in the making can finally make it across the finish line.

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The Smoker’s Club Lands in SoCal for a Massive 420 Festival

This April, a massive 420 event, packed with an impressive lineup of hip-hop and rap musicians, is heading to Southern California.

The Smoker’s Club Festival is an 18+ event will be held at the Glen Helen Amphitheater in San Bernardino, California, on Saturday, April 30—a destination that has been popularly chosen as the location for many other cannabis-related events in the past. If you’ve been looking for a sign to get out there and celebrate 420 in the sun, rather than in your living room, this is it. The Smoker’s Club announced the good news on January 20. “WE’RE BACK. APRIL 30. SO CAL,” The Smoker’s Club wrote on social media.

The 2022 event headliners include Kid Cudi, A$AP Rocky, Playboi Carti, Schoolboy Q (performing hits off his album Oxymoron), Wiz Khalifa (performing songs off his mixtape Kush & Orange Juice), 2 Chainz and so many more. Kid Cudi was busy in 2021, not only because he headlined Rolling Loud LA, but he also hinted that he’s got two albums in the works for 2022. Likewise A$AP Rocky headlined Rolling Loud Miami and ComplexCon 2021 last year and teased in a GQ interview that his new album, tentatively called All Smiles, would be released in the future.

This lineup has a lot in common with The Smoker’s Club Festival in 2018, which was held in Long Beach, California. Among its headliners were also Kid Cudi, Wiz Khalifa and Schoolboy Q, as well as Rashad, Ty Dolla $ign, Dom Kennedy, Lil Skies and Mac Miller prior to his passing.

Courtesy of The Smoker’s Club Festival

This year’s The Smoker’s Club Festival is also jam-packed with over 65 artists in the lineup—the poster advertisement contains so many individual acts that they can barely fit all of them on one page. Joey Bada$$, Danny Brown, Rico Nasty, SahBabii, Clams Casino, The Cool Kids, Asher Roth, Kreayshawn—it’s an epic setup that you’re not likely to find anywhere else. It has been a rough few years for musicians who rely on touring and in-person performances, so seeing some of these great groups and individuals in one place is a joyous occasion. Given the vast amount of entertainment contained in this one-of-a-kind event, tickets are priced at $222.99 for general admission, $408.99 for VIP access and $429.00 and up for hotel packages.

The Smoker’s Club is a famous New York City-based lifestyle brand founded by Jonnyshipes, Smoke DZA and Shiest Bubz. The trio first came up with the name in early 2010 at a humble smoke session. By March 2010, they had managed to put together the first The Smoker’s Club show at SXSW. Back then, it gathered artists such as Currensy, Smoke DZA, Kendrick Lamar, Devin The Dude, Big K.R.I.T., Schoolboy Q, JayRock and many more. According to the founders, people everywhere began requesting The Smoker’s Club shows in their home cities, and “so the legend of the Smokers Club was born.” Since then, the event has been held in over 100 cities and 20 different countries across the globe.

Twelve years following that first event, The Smoker’s Club brand now offers high-end streetwear and accessories. Some of their best sellers are oversized hoodies with and premium cotton T-shirts, and the brand also offers a wide variety of beanies, ashtrays, stickers, pins and other accessories as well.

Not to mention that The Smoker’s Club also offers three “connoisseur cannabis” flowers that are all described as hybrid/indica-dominant. Donuts is described as a smooth and robust smoke that has a strange but pleasant “creaminess” at the end of the exhale. Critterz smells of guava and chocolate, with a “gassy essence” but a fruit-cream-like flavor when exhaling. Lastly, Jobstopper brings a heavy fuel profile, but still offers sweet flavors such as vanilla cake, cream cheese frosting and whipped cream.

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Amazon Endorses Federal Cannabis Legalization

Amazon said this week that it supports a Republican congresswoman’s proposal to end the prohibition of marijuana on the federal level, the company’s latest embrace of legalization. 

In a tweet posted on Tuesday, Amazon said it was “pleased to endorse” a bill introduced by Rep. Nancy Mace (R-SC).

“Like so many in this country, we believe it’s time to reform the nation’s cannabis policy and Amazon is committed to helping lead the effort,” the company said. 

Mace introduced the legislation, called the “States Reform Act,” in November, saying at the time that “Washington needs to provide a framework which allows states to make their own decisions on cannabis moving forward.”

The bill would remove cannabis from Schedule I under the Controlled Substances Act, a law that has kept weed illegal on the federal level and has made some states hesitant to pursue their own cannabis laws. 

“Today, only three states lack some form of legal cannabis,” Mace said in her November announcement. “My home state of South Carolina permits CBD, Florida allows medical marijuana, California and others have full recreational use, for example. Every state is different. Cannabis reform at the federal level must take all of this into account. And it’s past time federal law codifies this reality.”

Mace said that her bill would enshrine protections for veterans who have used cannabis to treat their PTSD, and would be respectful of each state’s own unique laws.

“This is why I’m introducing the States Reform Act, a bill which seeks to remove cannabis from Schedule I in a manner consistent with the rights of states to determine what level of cannabis reform each state already has, or not,” she continued in her announcement. “This bill supports veterans, law enforcement, farmers, businesses, those with serious illnesses, and it is good for criminal justice reform. Furthermore, a super-majority of Americans support an end to cannabis prohibition, which is why only three states in the country have no cannabis reform at all. The States Reform Act takes special care to keep Americans and their children safe while ending federal interference with state cannabis laws. Washington needs to provide a framework which allows states to make their own decisions on cannabis moving forward. This bill does that.”

On Tuesday, Mace touted the bill’s endorsement from Amazon, saying the company “is making a common-sense decision that many other businesses, large and small, agree with.”

“Amazon employs nearly a million U.S. workers, and this opens up their hiring pool by about 10 percent. Cannabis reform is supported by over three quarters of the American public, and the States Reform Act is something both sides of the aisle can get behind,” Mace said.

For Amazon, America’s second largest employer, the endorsement is yet another sign of the company’s weed-friendly stance.

Last June, Amazon said that it would “no longer include marijuana in our comprehensive drug screening program for any positions not regulated by the Department of Transportation, and will instead treat it the same as alcohol use.” In September, the company went further, saying it was reinstating “employment eligibility for former employees and applicants who were previously terminated or deferred during random or pre-employment marijuana screenings.”

The are also emerging signs that the company is set to ramp up its pro-marijuana lobbying efforts, with Politico reporting in July that cannabis groups “are pinning their hopes on Amazon using its experienced lobbying team and deep pockets to support their efforts, believing it could help them launch ad campaigns and persuade lawmakers opposed to legalization—especially those who represent states where cannabis is legal—to change their minds.”

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Real THC is a must in true full spectrum CBD oil

Cornbread Hemp's full spectrum, organic CBD gummies, tinctures, and topicals feel like cannabis you’d get off a dispensary shelf.

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EU Cannabis Consumption Increased and Ecstasy Use Decreased in 2021

A new survey studying the consumption habits of participants in the European Union (EU) reveal that cannabis use has increased, and the use of ecstasy has decreased considerably.

The European Monitoring Centre for Drugs and Drug Addiction (EMCDDA) recently found that cannabis and ecstasy saw the strongest changes in consumption habits. The European Web Survey on Drugs was conducted online between March and April 2021 with the intention of illuminating patterns of drug use to consider in future regulation. Throughout 21 EU countries and nine non-EU countries, the survey recorded answers from those who were 18 or older and had used drugs.

The survey results, published on January 20, recorded the drug use breakdown of the 48,469 participants. “Cannabis was the drug used most, with 93 percent of survey respondents reporting to have used it in the previous 12 months and with little variation between countries,” the survey results state. “MDMA/ecstasy (35 percent), cocaine (35 percent) and amphetamine (28 percent) were the next most reported illicit substances, with the order of the three drugs varying by country. Around a third of respondents (32 percent) reported using more (herbal) cannabis and 42 percent using less MDMA/ecstasy.” The results also show that a group of participants had used LSD (20 percent), a new psychoactive substance (16 percent), ketamine (13 percent) and heroin (three percent).

Furthermore, participants from the Western Balkans (which is made up of a Albania, Bosnia and Herzegovina, North Macedonia, Montenegro, Serbia and Kosovo) also echoed the high consumption of cannabis, and decreased use in other substances—especially ecstasy. “Most respondents (91 percent) reported using cannabis in the previous 12 months, followed by cocaine (38 percent), MDMA/ecstasy (22 percent) and amphetamine (20 percent). Again, around a third of respondents (32 percent) reported using more (herbal) cannabis and 34 percent using less MDMA/ecstasy.”

In terms of where these substances were consumed, 85 percent of participants in the EU and 72 percent of the Western Balkans used these substances at home, rather than at public venues. It also takes into account that the motivation for cannabis use at home was because of a multitude of reasons. Participants wanted to relax, get high in order to improve sleep, but their use of MDMA or ecstasy was used to attain “euphoric and socialising [sic] effects.”

The study result breakdown states that the information shared by the 50,000 people included in the survey is just a small portion of the EU, but still offers a useful glimpse into the changing habits of residents. “While web surveys are not representative of the general population, when carefully conducted and combined with traditional data-collection methods, they can help paint a more detailed, realistic and timely picture of drug use and drug markets in Europe. Over 100 organisations [sic] took part in the initiative, including the Reitox national focal points, universities and NGOs.”

EMCDDA Director Alexis Goosdeel shared a statement regarding the goal of this survey, and the amount of participation needed from organizations to sort and analyze the data. “Web surveys are a key ingredient in our monitoring of Europe’s shifting drugs problem,” Goosdeel said. “They help us reach an important target population through innovative online methods. Today’s results reveal the wide variety of drugs available across Europe and provide valuable information on emerging trends and changing patterns of use during the COVID-19 pandemic. An impressive 100 organisations [sic] joined us this time in building, translating and disseminating the survey, ensuring that this is now an invaluable tool to help tailor our responses and shape future drug policies.”

Other studies in the U.S. have shed light on other topics related to cannabis, such as targeting teens with ads on social media or an updated Gallup survey that shows that a majority of Americans support legalization.

The post EU Cannabis Consumption Increased and Ecstasy Use Decreased in 2021 appeared first on High Times.

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