Japanese Health Officials Propose Revision of Law To Allow Import, Medical Cannabis

The Japanese Ministry of Health, Labour, and Welfare stated on Sept. 29 that it recommends an amendment to the country’s drug law, known as the Cannabis Control Act. According to Reuters, the agency expressed the need to allow cannabis to be imported and permitted for medical use, which would align it with other countries that already have established medical cannabis programs.

Medical cannabis would be regulated like pharmaceuticals, and “would apply to marijuana products whose safety and efficacy were confirmed under laws governing pharmaceuticals and medical devices,” according to Reuters.

According to translated documents published on Sept. 28 by the Japanese Ministry of Health, Labour, and Welfare, a large number of individuals contributed to the review and recommendations, including professors and medical professionals. According to the report, only 1.4% of people in Japan report having ever used cannabis. In western countries, consumer percentages range between 20-40%.

In the U.S., Epidiolex is the first CBD medicine approved by the Food and Drug Administration (FDA) for treating children with epilepsy, and specifically those who suffer from Lennox-Gastaut syndrome, Dravet’s syndrome, and tuberous sclerosis complex. As of March 2019, Epidiolex began undergoing clinical trials in Japan, although there have been no further reports or updates. The trials are exempt from the country’s Cannabis Control Act, which prohibits cannabis import/export and consumption. At the time, the country reported having 3,000 residents who suffer from Dravet syndrome, and 4,300 who suffer from Lennox-Gastaut syndrome.

In its current form, the Cannabis Control Act is limiting all forms of progress in relation to cannabis, including hemp.

In January 2021, the Hokkaido Industrial Hemp Association (HIHA) released a statement addressing the Japanese Ministry of Health, Labour, and Welfare’s investigation on cannabis and other drugs. “The Cannabis Control Act is a profoundly unreasonable law that restricts all cannabis regardless of the quantity or even presence of THC (Tetrahydrocannabinol, the active ingredient in marijuana, the chemical synthetic substance of which are designated as an illegal drug in Japan), and even prohibits the cultivation of hemp from overseas (see note below) containing none of this substance,” HIHA wrote. “First, concerning the Cannabis Control Act and problems with its application, we would like to recommend the development of a more reasonable law formulated based upon discussion that is made public to the citizens of Japan and upon scientific knowledge.”

HIHA concluded that the Cannabis Control Act is preventing the hemp industry from flourishing since it was enacted in 1948. “In order to develop a hemp industry on par with those overseas and protect national interests concerning industrial hemp, this country must revise the Cannabis Control Act and other related laws as soon as possible, position the hemp industry appropriately within the legal system, and strike a balance between the control of drugs and the encouragement of industry.”

In August 2021, the Japanese Ministry of Health, Labour, and Welfare released a report detailing their recommendations for allowing medical cannabis for patients. Earlier this year in May, the ministry met again to continue the discussion of medical cannabis, addressing the need for treatment for those who abuse cannabis use and how to address youth consumption.

In December 2021, the gaming company Capcom partnered with the Osaka Prefectural Police to use its fictional character Ace Attorney to campaign against cannabis youth consumption. According to the Japanese National Police Agency, there were 5,482 people who were caught violating the country’s cannabis law (4,537 were in possession of cannabis, while 273 were illegally selling the plant, and 230 were arrested for illegally cultivating). Beatles band member Paul McCartney received an 11-year ban from Japan for possessing half a pound of cannabis back in 1980.

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BOGO on all CBD+THC products from Vena

Buy one, get one on Vena’s wide range of CBD and CBD+THC offerings with this Leafly-exclusive sale.

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Roll a better blunt with Al Capone blunt wraps

When it comes to a blunt wraps' quality, it’s all about the smoke. With Al Capone wraps, two words sum it up: smooth & slow.

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Interview with a cannabis chef: Mike DeLao and his peanut budder cookies recipe

For Chef Mike DeLao, cannabis was a casual pastime. Then he discovered the full scope of its healing properties.

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Vermont weed stores open Oct. 1, here’s where to find them

Three adult-use cannabis stores are expected to open on Saturday. We've got all the details.

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Washington State Settles With Unicorn Brands Following Synthetic THC Probe

The Liquor and Cannabis Board in the state of Washington said Wednesday that it has reached a settlement with Unicorn Brands LLC over a “a year-long investigation and multiple Administrative Violation Notices (AVNs) for creating synthetically-derived THC from hemp and distributing it into the state-regulated cannabis market.”

The board said that Unicorn Brands “cooperated with the investigation” and ceased the conversion process that was under question. Last summer, the Liquor and Cannabis Board issued a policy statement that “made clear that synthetically-derived THC from hemp was prohibited under current rules and law.”

“This was an important case about the integrity of the legal cannabis system voters approved ten years ago and which today flourishes in Washington with a carefully controlled system of production, processing and selling of cannabis to adults,” Liquor and Cannabis Board chair David Postman said in an email to marijuana license holders in the state, reminding the businesses “of the prohibition on the sort of laboratory conversions involved in the Unicorn case.”

In October of last year, the board’s Education and Enforcement Division issued an Administrative Violation Notices to Unicorn Brands for four violations in its synthesis process: “1) Misuse of License, 2) Criminal Conduct, 3) Noncompliant Extraction, and 4) Traceability Failure.”

Under the terms of the “comprehensive settlement” between the two sides, the board said that Unicorn Brands “will not resume converting hemp into THC and brings an end to a lengthy and complex investigation.”

The board provided more details on the back-and-forth that preceded this week’s settlement.

“After extensive negotiations, the agency and Unicorn reached an agreement to settle these cases. As part of this settlement, the Enforcement and Education Division has agreed to fully withdraw the alleged criminal conduct charge,” the board said in a statement. “In exchange, Unicorn stipulates and fully admits to the remaining three violations: Misuse of License, Noncompliant Extraction, and Traceability Failure. Further, Unicorn has agreed to pay the standard monetary penalties for the three stipulated violations, accept forfeiture of the seized products, and waive further administrative review. Finally, Unicorn has agreed to the condition that “it shall not use its license to produce or manufacture Delta‑8 THC, Delta-9 THC, or any similar synthetically-produced THC from any hemp-based sources in the State of Washington unless explicitly authorized by a subsequent change in state law that allows the licensee to do so.”

The case highlights concerns surrounding the burgeoning Delta-8 market, with state regulators throughout the country struggling to stay on top of new (and, in some cases, illicit) products.

In its press release on Wednesday, the Liquor and Cannabis Board called on lawmakers in Washington to take steps toward providing greater regulation on that front.

“The next important step in protecting the public health is to eliminate the burgeoning market for Delta 8 products and other synthetically-derived products outside the regulated market. These gummies and other edibles are being illegally sold in convenience stores and online in Washington and across the country. We hope the 2023 legislative session will see action to assist in eliminating these illegal sales,” the board said.

Regulation of Delta-8 is far from the only pressing matter facing Washington’s cannabis industry. The state experienced a surge in armed robberies of cannabis dispensaries earlier this year, a problem attributed to the large sums of cash on hand at such retailers.

A spokesperson for the Liquor and Cannabis Board said in February that the agency recommended dispensary owners “hire armed security guards, make frequent cash deposits so there isn’t much cash available in shops, post signs in businesses explaining that staff don’t have access to much cash, clearly communicate safety guidelines with staff so they know what to do in the event of a robbery.”

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Tough Times in Oregon Cannabis

Oregon doesn’t want any new cannabis businesses. This turnabout rather happened quickly. Until this spring, the Oregon Liquor Control Commission (OLCC) issued most types of cannabis licenses to anyone who qualified under relatively broad parameters, through a cheap and simple licensing process. Oregon was even the first state to open its program to non-resident owners, back in 2016.

How we got here (short version)

We first saw OLCC attempt to slow things down a bit back in 2018, when it “paused” acceptance of new applications in response to administrative backlog. Then, in the spring of 2019, the Oregon legislature enacted the (now expired) SB 218 moratorium on new producer licenses. But those actions paled in comparison to the current, multi-faceted effort by state actors to reign in the program.

Local industry has captured the legislature at this point, perhaps out of sympathy. This has placed downward pressure on OLCC to reign in licenses. The biggest shot across the bow was HB 4016, which enacted a sweeping moratorium on new cannabis licenses in the state. That sounds like a big deal, and it was; but really it was just one of a handful of actions targeting the industry over the past year.

A the end of July, OLCC announced its intent to “tighten the change of ownership option” for bad actors in the Oregon industry. In short, OLCC directed its Administrative Hearings Division to take stronger positions in settlement talks with alleged violators, including by refusing to allow those alleged bad actors to sell their licenses to new parties. You can think of this as similar to a directive given by a district attorney to subordinate prosecutors– mandating the end of plea bargains, and requiring that charged parties “plead to the sheet.”

At the end of August, OLCC also teamed up with the Oregon Department of Water Resources to begin unannounced inspections of OLCC producers and ODA hemp growers. This ensued pursuant to HB 4061 which allocated significant funding for the sweeps, and gave OLCC personnel a sort of “peace officer” status with respect to field actions. The initiative was similar in nature to last fall’s controversial Operation Table Rock. That effort saw mass inspections of Oregon hemp farms, searching for high-THC crops.

What’s next

So what do things look like right now in Oregon cannabis from a regulatory perspective? Here are the takeaways for me:

1. The Oregon legislature will continue to do what industry asks of it. This means maintaining walls around the program and its status quo– including on tax issues. Most of the heavy lifting is over, but we can expect to see program tinkering in the 2023 session as usual. The regulated industry continues to struggle and will push for more.
2. The OLCC will continue to take a tougher line in the office and in the field, pursuant to ongoing funding. The goal is to cull licenses. In our view, the Commission seems somewhat discombobulated as it attempts to instate processes, policies and justifications to cull the herd. Advice to operators is simply to steer clear of the crosshairs.
3. Outside help is not coming. Both Congress and the Biden Administration continue to disappoint on cannabis. California finally joined Oregon in passing a cannabis export bill last month, but my guess is the two states won’t link up anytime soon. Even if the opposite were true, market conditions in each state aren’t promising for Oregon licensees.

The takeaway

The Oregon cannabis industry is in a tough spot right now. It’s no fun. Most businesses have no money and sales have declined from pandemic era highs. A few of the big players — which are essentially immune from meaningful OLCC enforcement action — continue to put the squeeze on everyone else. The silver lining here is that anyone who can make it through this slog has a real chance at sticking around long term. But anyone looking at investing in or owning an Oregon cannabis business at this point should be aware of these dynamics.

____

For more on what’s going on and how we got here, check out the following:

• Ten Years in the Oregon Cannabis Industry
• Oregon Cannabis: State of the State (2021)

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Study asks 80,000 cannabis users when, how, and why they use the plant

Through an app called Jointly, researchers studied information gleaned from more than 200,000 cannabis user experiences to better understand what consumers desire. Here’s what the data showed. The report aims to demystify “purposeful and intentional” cannabis use across America. Data points include 206,000 sessions in total. The data from those experience logs were used as […]

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‘Cloudy with a chance of Munchies’ study ties legal cannabis to lower obesity rates

New research challenges the idea that cannabis triggers unhealthy habits and outcomes.

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Star signs and cannabis strains: October 2022 horoscopes

It's fall, y'all. Find out which strains you should enjoy to have the best October possible according to your astrological sign.

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Canadian Government Tells Hockey Players in Russia, Belarus To Leave

The Canadian federal government recently sent word to hockey teams traveling in Russia and Belarus to leave as soon as possible, according to the Toronto Sun. Forty-eight Canadian hockey athletes are on the roster for the Kontinental Hockey League, and 44 of them are playing in Russia and Belarus (the other four are in Kazakhstan).

Russia invaded Ukraine on Feb. 24, and Canada was an early supporter of Ukraine since the war began. The Canadian government has given $626 million in military aid, and $320 in humanitarian relief. “Our government has been very clear. Canadians should avoid all travel to Russia and Belarus,” Global Affairs Canada said in a statement to The Canadian Press. “If they are in Russia or in Belarus, they should leave now. Our ability to provide consular services may become extremely limited.”

There could be a possibility that a situation similar to the imprisonment of U.S. WNBA athlete Brittney Griner could occur due to the ongoing conflict. According to Maria Popova, Associate Professor of Political Science at McGill University in Quebec, there is a real threat to players. “Anybody who is in Russia is always in danger of being framed, incarcerated, used as a pawn in whatever the local government, central government et cetera decides to do,” Popova said. “I think something like what happened to Brittney Griner is possible. The same playbook can be repeated in a case against a Canadian player for sure.”

Griner was detained in Russia on Feb. 17, just before Russia invaded Ukraine. Popova did add, however, that while there’s a risk for players playing abroad, she doesn’t see a clear reason why Russia would choose to detain more athletes. “I don’t see why Russia would try to use these people as a pawn because Canada is not Russia’s main problem in this war,” Popova said. “There isn’t really any hope that Russia could change Canadian policy in Ukraine. They know Canada is firmly in NATO, clearly backing Ukraine.”

Adrien Blanchard, press secretary for Canadian Foreign Affairs Minister Melanie Joly, told CBC.ca that players should explain why they are choosing to stay in Russia and Belarus. “President [Vladimir] Putin’s war in Ukraine is a war on freedom, on democracy and on the rights of Ukrainians, and all people, to determine their own future,” Blanchard said. “Athletes who decide to play and associate with Russia and Belarus should explain their decisions to the public.”

Player-agent Ritchie Winter, based in Alberta, manages three players currently involved in the Kontinental Hockey League. In his opinion, players have every right to continue making a living.

“We live in a world where individuals are allowed to make those decisions. It’s just an individual decision related to an employment opportunity. Has every player that’s gone, push, tugged and pulled and wrestled with the decision? Yeah, absolutely,” Winter said. “At the end of the day, they’re husbands and fathers who have responsibilities to their families. If you’re a young family with limited resources because you played mostly in the minors, there’s a desire to take care of your family. Sometimes that leads people to the oilfields in Kazakhstan and sometimes it leads them to the KHL.”

An NBC News report from March shared that players often compete in Russia because they can possibly earn four or five times more than their U.S. salaries. Citing Ketra Armstrong, a professor of sport management and the director of the Center for Race & Ethnicity in Sport at the University of Michigan. “It’s a sad situation in many regards, but it’s not totally beyond the realm of understanding,” said Armstrong. “The amount of money that athletes can make throughout other parts of the world is incredible and almost a no-brainer depending on how good you are and your overall market appeal.”

The National Hockey League (NHL) does conduct THC drug tests on players, but CBD is permitted. Rather than being punished for cannabis use, the NHL refers the players to a Substance Abuse and Behavioral Health Program.

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Kellyanne Conway Connects Weed With ‘Overdose Deaths’ in Pennsylvania Race Discussion

Absurdity, balderdash, and fuckery in general unfolded on the often biased cable news circuit this week. Don’t joke about or mention weed because of the doubling of “overdose deaths,” former White House advisor Kellyanne Conway said in so many words on Fox News Monday.

Democratic Pennsylvania Lt. Gov. John Fetterman faces off against Republican celebrity doctor Mehmet Oz in Pennsylvania’s hot-button U.S. Senate race this fall. Fetterman, from the beginning, has been outspoken about his pro-marijuana stance.

Dr. Oz, on the other hand, is more difficult to tell, both slamming adult-use legalization in Pennsylvania and admitting that marijuana is safer than some prescription drugs. The current stance doesn’t exactly align with previous episodes on The Dr. Oz Show, when he was called a medical marijuana “advocate” a few years ago. Dr. Oz now falsely says that legalization leads to higher unemployment rates. 

So Fox News tapped Conway for commentary on the race on September 26, and Conway did not disappoint her base.

Kellyanne: He put the marijuana flag up. He thought that was funny.. Here’s what’s not funny. There’s been a doubling of overdose deaths.. pic.twitter.com/HWeoZ3K8eB

— Acyn (@Acyn) September 27, 2022

“He put the marijuana flag up. He thought that was funny. He’s trolling his opponent. He thinks that’s funny,” Conway said of Fetterman’s recent comments. “Here’s what’s not funny: that there’s been a doubling of overdose deaths in Pennsylvania while he’s been in office from 2015 to 2021. Fentanyl is rankling every corner of this state.”

What fentanyl has to do with marijuana is anyone’s best guess. The conflation of marijuana with overdoses has been debunked by several government agencies.

The National Institute on Drug Abuse (NIDA) admits there has never been a fatal overdose recorded from cannabis alone. The Centers for Disease Control and Prevention (CDC) also says an overdose from cannabis is “unlikely.”

Fentanyl is a completely different story. In 2021, 107,622 total drug overdoses were recorded, and the majority, or 66% of those deaths, are related to synthetic opioids like fentanyl.

In Pennsylvania specifically, troubled areas are riddled with people struggling with opioid addiction, which was documented in the Kensington neighborhood of Philadelphia last month. But Salon reports that the majority of central Philadelphia is gentrified and the drug crisis is better off than it has been in the past. Focusing only on the state’s troubled areas doesn’t provide an accurate picture.

Social Media Mockery

Unsurprisingly, Conway was brutally dragged both on social media and in the media, Newsweek reports. Yahoo! News called Conway’s comments a “brazen marijuana lie,” gaining over 3,000 shares, while the U.K.-based Independent wrote that she was “mocked for blaming overdose deaths on marijuana.” HuffPost and AOL News reported that she was “gaslighting everyone.”

I thought @JohnFetterman put it up to protest the abject stupidity of the US Govt spending $50 billion in taxpayer money on a marijuana crusade that is riddled with hypocrisy. Who gets locked up? Black people. Marijuana and Fentanyl have as much to do with each other as Coors https://t.co/bY4Ohin7x3

— Steve Schmidt (@SteveSchmidtSES) September 27, 2022

Former GOP strategist Steve Schmidt, who left the Republican party and renounced his membership, tweeted on Tuesday, “I thought John Fetterman put it up to protest the abject stupidity of the US Govt spending $50 billion in taxpayer money on a marijuana crusade that is riddled with hypocrisy. Who gets locked up? Black people. Marijuana and Fentanyl have as much to do with each other as Coors.”

“It’s all nonsense,” Schmidt continued. “Cannabis is legal in many states and has never killed anyone. [Kellyanne Conway] has less credibility than Trump and may be the only American who stands as a true peer of his when it comes to lying. She sold out America for fame and power. Not credible.”

If marijuana deaths were doubled, the number would still be zero, you gaslighting cartoon. https://t.co/ve6CGATTI0

— Cheri Jacobus (@CheriJacobus) September 27, 2022

Political commentator Cheri Jacobus actually did the math and figured that if you multiply zero times two, the number is still zero: “If marijuana deaths were doubled, the number would still be zero, you gaslighting cartoon.”

If you look really closely you can almost see the imaginary line of marijuana overdose deaths on this chart of U.S. government data from the last 22 years pic.twitter.com/sIdh8cJ50s

— Dr. Jorge Caballero stands with (@DataDrivenMD) September 27, 2022

Dr. Jorge Caballero also did the math, but in line graph form, saying that a model of marijuana overdoses would look like a completely level line of zero.

“If you look really closely you can almost see the imaginary line of marijuana overdose deaths on this chart of U.S. government data from the last 22 years,” Caballero tweeted.

Currently, Dr. Oz trails Fetterman in the Pennsylvania race, but polling numbers remain relatively close.

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FDA finally advances cannabis research and regulations: Hires ex-NY cannabis policy regulator

Is the Biden administration ready to talk about cannabis? The latest move by the FDA may be an indicator of progress on a national scale.

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Rutgers Law School Adds Cannabis Law, Business Certificate for 2023

Registration has already opened for the Cannabis Law and Business certificate of study, which will officially commence in January 2023. Those accepted will spend six months learning the ins and outs of the New Jersey weed sector, with an emphasis on the stringent and often complicated regulations which prospective business owners need to be familiar with.

“This is the first program that Rutgers Law School has developed to support participants who are not [law] students or legal professionals,” a press release from the university said. “The curriculum has been developed specifically for New Jersey’s legal cannabis industry, making it highly specific to the needs of the local community.”

The program will be mostly online with two in-person sessions and has two certificate options for cultivators and retailers respectively. The entire course can be taken for $2,695 or individual topics of study can be purchased for between $600-$850. A limited number of scholarships may also be available to anyone applying for a cannabis-related social equity business license in New Jersey.

Rutgers Co-Deans Kimberly Mutcherson and Rose Cuison-Villazor said in a joint statement that “This new certificate is exactly the kind of work that we want to be doing as New Jersey’s state law school. Now that the state legislature has legalized the cannabis industry here, we want to ensure that we can provide crucial information to the citizens of New Jersey who want to enter this business, especially those from communities that traditionally bore the brunt of punitive outcomes before legalization.”

The six available class modules are as follows:

1. Fundamentals of cannabis regulation in New Jersey – The history of legal marijuana in New Jersey with an emphasis on the CREAMM Act
2. Regulatory compliance – Protecting your license by running a compliant cannabis business
3. Cannabis business operations – Banking, branding, licensing, and more
4. Locations and local government – A big challenge in New Jersey specifically where 70% of local municipalities initially opted out of allowing recreational marijuana
5. Retail or Cultivation – Students choose one or the other depending on what kind of business they want to open
6. Capstone project – A final project such as a business plan or an investor pitch with feedback from expert faculty

The announcement from Rutgers comes on the heels of New Jersey’s recreational cannabis market opening its doors in April, amid heavy speculation and concern surrounding the availability of product. However, other than some long lines, no one has reported running out of cannabis yet. That said, many in New Jersey have said that between licensing holdups, high property costs, and stringent zoning laws, New Jersey is not an easy place to open a cannabis business to say the least.

Rutgers is the latest in a relatively small number of universities that have elected to add cannabis studies of some kind to their class offerings. Though most cannabis-related college programs are either certificate-based or minor degrees; Cal Poly Humboldt, CSU Pueblo, and Lake Superior State University remain some of the few to create 4-year BA programs with the word cannabis in the title.

Not to be an ass or anything, but I feel obligated to disclose here that cannabis is still entirely prohibited from Rutgers University property due to its continued federal illegality, despite being legal for adult-use in New Jersey. To register for the program, click here.

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Prepping for a Cannabis Recession

A cannabis recession may be coming and no cannabis business is immune. Prices are rising, operations are expensive to run, over regulation is rampant, local control is stifling, and you can’t even take many business deductions with the IRS because of IRC 280E.

While things like interstate commerce agreements are getting a lot of attention, cannabis businesses should maybe be thinking about how to prepare now for a cannabis recession in the future. Here’s how:

Cut the non-essentials and get lean and mean

This one is obvious. To a certain extent, cannabis businesses have been permitted to grow relatively comfortably for a while now– mainly because legalization has been somewhat novel and exciting to consumers. Lots of cannabis businesses have invested heavily into their IP, work fleet, fee slotting agreements, and expansion efforts in order to capture the upside of these democratic experiments (before bigger business interests jump in).

However, with a cannabis recession potentially looming, examining work force size and unnecessary expenditures is bound to happen. From the legal front, when cutting employees or trying to bail on goods and services agreements, make sure you know what you’re doing in those respective areas. Missteps or breaches will be undoubtedly costly.

Consider outsourcing what you can

Cannabis ancillary companies are a dime a dozen these days. Many operators are outsourcing a chunk of their businesses, and that’s OK so long as it doesn’t amount to trafficking without a license (big no no). Cannabis management companies need to be mindful of IRC 280E, and owners, financial interest holders, and true parties of interest still face a myriad of disclosure requirements. But downsizing and outsourcing is an efficient way to save some cash in hard times.

Ditch your bad, expensive agreements (or try to change them)

Times like now are why it’s so very important to consider “no cause” termination in your agreements with third parties. You may otherwise be locked into a very costly, unproductive agreement for a lengthy term.

If you can’t get out of a contract, maybe at least go to the other party to re-negotiate some more economically sensitive terms. I can tell you now that I’m working on a number of contract “re-do’s” where parties are heavily negotiating the absorption of costs and guaranteed minimum production metrics (especially with cannabis distribution agreements). Now’s the time to examine these things.

Start whipping on collections

Margins in cannabis are not amazing unless you can really scale and engage in high volume production. And even if you can do those things, in most states, getting paid B2B is increasingly difficult. Yes, we’re all in this democratic experiment together, but to prevent complete failure, businesses will have to get tougher on engaging in collections and getting paid.

Long gone are the days of sweet net payment deals for distributors and retailers. Discount pricing is also taking a hit because wholesale production costs have gone up considerably (in addition to the general high expense of running these operations). It’s not pretty and no one wants to do it, but if you’ve been late on your payments to your cannabis vendors, you should probably expect to receive some demand letters around payment or even collection efforts to boot. A cannabis recession will certainly bring out people’s teeth.

Pay your taxes or get on a payment plan ASAP

The cannabis industry needs to understand that no revenue collector feels bad for it. Their job is to wrench out of you every dollar owed to the government. And pointing to a cannabis recession for an inability to pay is not going to be persuasive.

If you’re headed for dire straits on payment of your taxes as the cannabis economy slows, do not wait to do something about it with the tax collector. Get on a payment plan in your state and work with the government to stay on top of it and out of liens and levies.

Adjust products and services

Cannabis is an industry that embraces innovation. In times of economic downturn, all businesses are going to be looking at their products and services to determine if they’re worth the cost and in demand.

Consumer behavior gets wonky in a recession, but cannabis businesses would be wise to pay attention to what’s selling and what’s not, and to focus on producing those products in demand and diversify accordingly (or creating the demand with various innovations, so long as they comply with prohibited products lists and packaging and labeling requirements, which vary across states).

Other things to consider now are things like subscription programs, discount clubs, and personalized products (like monthly boxes, etc.). Just make sure any recession-friendly product turn-outs comply with the many, many cannabis marketing and sales regulations in your state.

___

It’s been said that a recession is an opportunity in wolf’s clothing. And that can be true for a cannabis recession too, but companies should prepare themselves now so they can successfully weather the storm.

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Free THC+CBD from Medterra

Get your full-sized free gift from Medterra and start enjoying that feel good relief today. THC+CBD with a range of formats to choose from.

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Deadline Passes in New York for First Round of Dispensary Licenses

The deadline for the first adult-use cannabis dispensary licenses in New York arrived on Monday, and now hundreds of applicants await feedback from the state.

Monday’s deadline came a month after the state’s Office of Cannabis Management officially opened the application portal on August 25.

Since then, the agency has been flooded with applications from individuals hoping for the first crack at the Empire State’s legal marijuana market.

Earlier this week, The New York Times reported that roughly “500 applications had been submitted by Sunday,” adding that hundreds “of ineligible people have been turned away, but so have dozens more who did qualify and needed help navigating the state’s online portal.”

The state will award 150 licenses for the first round this fall, and those have been designated exclusively for applicants who have previously been convicted of a pot-related offense (or a family member of someone who has).

Billed as the “Seeding Opportunity Initiative,” the policy goes further than most of the so-called “social equity” provisions in other states’ marijuana laws.

“New York State is making history, launching a first-of-its-kind approach to the cannabis industry that takes a major step forward in righting the wrongs of the past,” New York Gov. Kathy Hochul said in announcing the policy back in March. “The regulations advanced by the Cannabis Control Board today will prioritize local farmers and entrepreneurs, creating jobs and opportunity for communities that have been left out and left behind. I’m proud New York will be a national model for the safe, equitable and inclusive industry we are now building.”

New York City has taken similar steps toward enhancing opportunities in the emerging cannabis industry for individuals adversely affected by erstwhile marijuana laws.

The city’s mayor, Eric Adams, announced last month “a first-of-its-kind initiative and suite of services to support the equitable growth of the cannabis industry in New York City.”

The initiative, known as Cannabis NYC, will provide “technical assistance for cannabis license applicants, as well as other business services to take entrepreneurs beyond licensing to a thriving operation,” while also supporting “cannabis entrepreneurs and their workers as the industry develops.”

It will also collaborate with “industry stakeholders to create good jobs, successful small businesses, and sustainable economic opportunities, while also addressing the harms of cannabis prohibition.” Adams’ office said that the “first phase of Cannabis NYC will focus on ensuring that justice involved New Yorkers are able to apply for and secure retail licenses from the state.”

“Today, we light up our economy and launch Cannabis NYC — a first-of-its-kind initiative to support equitable growth of the cannabis industry in New York City,” Adams said in a press release last month. “The regulated adult-use cannabis industry is a once-in-a-generation opportunity for our underserved communities that have, for too long, faced disproportionate rates of drug-related incarceration to get in on the industry on the ground floor. Cannabis NYC will plant the seeds for the economy of tomorrow by helping New Yorkers apply for licenses and understand how to open and successfully run a business, while simultaneously rolling equity into our economy by giving those who have been justice-involved and those with a cannabis conviction a chance to succeed. This is about creating good jobs, successful small businesses, and finally delivering equity to communities harmed by the ‘War on Drugs.’”

The first state-regulated recreational cannabis dispensaries in New York are not expected to open until late this year (as the earliest).

But countless small business owners there have not waited to get in on the “kush rush.” New York City in particular is teeming with illicit cannabis shops, prompting state regulators to crack down on some.

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Why is pro-legalization Amazon suddenly banning weed grinders?

Amazon is lobbying to legalize, but its product managers are still fighting the War on Drugs. Why not ban apples and lighters too?

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FREE Webinar: Cannabis in Latin America

Register HERE!

Many North American and European cannabis companies have set their sights on Latin American countries. The region features rich land, an abundance of natural resources, a ready workforce, and many millions of potential customers. The goal of these prospecting businesses is to make Latin America part of their supply chains or as end markets, gaining an advantage in a highly dynamic and competitive industry. 

However, due to uneven and uncertain legalization processes, several cannabis businesses have found it difficult to establish and monetize value chains throughout Latin America. As a result, companies have had a hard time envisaging ways and means to gain market share in a cost-effective manner.  

This webinar is designed to help viewers gain a high-level understanding of cannabis legalization in Latin America. Experts will cover both the hemp and marijuana contexts, including how to create and profit from business opportunities under the current legal framework of the largest and most developed cannabis economies. 

Join Adrián Cisneros (Harris Bricken, Mexico Office), Pilar López (Arias Law, Costa Rica), Agustina Tedesco (Pittaluga Abogados, Uruguay) and Rafael Arcuri (National Industrial Hemp Association, Brazil) for this first-ever webinar as they explain Latin America’s cannabis legal landscape through five key jurisdictions. These attorneys have a broad mix of international transactional and regulatory experience in the cannabis sector, and will provide an overview of what you need to know to begin planning your expansion into Latin America.

The attorneys will cover topics such as the following: 

• What is legal in Mexico, Costa Rica, Panama, Uruguay, and Brazil? 
• Regulatory predictions in all five jurisdictions. 
• Business opportunities and market predictions in each country. 
• Best business practices for cannabis companies looking to expand into Latin America. 

This free hour-long webinar will take place on Wednesday, October 5th at 10:00 am PDT / 12:00 pm CDT. The attorneys will answer your questions towards the end of the event, so please feel free to submit your questions in advance. Questions will also be taken throughout the presentation.

Register HERE!

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28 grams of game: Eduardo Whittington of Lobo Cannagar

Eduardo Whittington just applied for a license to make cannabis products in his home state of New Jersey. Here's how he got here, and what’s next.

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What can cities do for cannabis equity? Seattle lays out a blueprint

Tired of waiting on state officials to act, Seattle takes matters into its own hands. Here's what it takes to get things moving.

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Is Big Tobacco Pivoting to Big Cannabis?

British American Tobacco announced Monday that it has acquired a non-controlling minority stake in the Berlin-based marijuana startup Sanity Group GmbH.

Kingsley Wheaton, the chief growth officer at BAT, characterized the deal as an example of the company’s “ongoing work to explore numerous areas beyond nicotine, positioning BAT for future portfolio growth across a range of categories and geographies.”

“We continue to transform our business, through better understanding of our current and future consumers, as part of our A Better Tomorrow purpose,” Wheaton said in a press release. 

The acquisition could also be seen as a reflection of an emerging trend: cannabis is the future, while tobacco––specifically cigarettes––is increasingly a relic of the past.

A survey from Gallup last month found that a mere 11% of Americans reported as cigarette smokers, an all-time low. By contrast, 16% said they consider themselves current cannabis smokers.

Those consumer trends may continue to shift as marijuana becomes legal in more markets both in the United States and beyond.

In Germany, government officials are readying plans to legalize recreational cannabis, a move that will make the country the world’s largest legal marijuana market.

That coming change in policy almost certainly made Monday’s deal even more enticing for British American Tobacco, one of the largest tobacco companies in the world.

According to Bloomberg, Sanity “secured $37.6 million in the BAT-led Series B funding round,” noting that almost “half of the amount will go toward strengthening Sanity’s medical business, while the company will spend the rest on preparing for the potential legalization of recreational marijuana in Germany.”

Per Bloomberg, British American Tobacco made the investment along with Verde Capital, the investment fund co-founded by Snoop Dogg.

Sanity Group was founded in 2018 and now has more than 100 employees and has raised tens of millions from the likes of “Navy Capital, Redalpine, HV Capital, Calyx, Cherry Ventures, Bitburger Ventures, SOJE Capital, and various business angels and celebrities such as Will.i.am (Black Eyed Peas), Scooter Braun, Hollywood actor Alyssa Milano and German soccer player Mario Götze,” along with Verde Capital and now BAT.

The company says that its focus “is on pharmaceuticals (medical cannabis; finished pharmaceuticals) and medical products on the one hand, and cannabinoid-based consumer goods on the other.”

Finn Age Hänsel, the founder and chief executive officer of Sanity Group, hailed the funding from British American Tobacco as “an important milestone for us and a strong signal towards the future of cannabis in Germany and Europe.”

“I am grateful for the belief shown by both new and existing investors. Our goal is to leverage the full potential of the cannabis plant and to explore and harness the different cannabinoids – with the new capital, we will be able to accelerate our medical and consumer business units whilst preparing accordingly for cannabis legalization in Germany,” Hänsel said in a statement, as quoted by Tech Funding News.

According to Max Narr, the chief investment officer for Sanity Group, the “financing round is not only the largest funding round achieved by a European cannabis company to date, but also one of the few upsizing rounds in this current economic phase of the German startup scene.”

Hänsel told Bloomberg that Sanity has attracted “strong interest, not only from tobacco, but also from other industries like fast-moving consumer companies.”

He also said that the German government is “working actively on [the new marijuana law] and really want to come to a good draft of the law by the end of this year.”

“This is really a priority topic for the government,” he said.

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Medical cannabis for doggies, kitties is fully legalized in California

Veterinarians are finally able to recommend products, which will be coming to a dispensary near you.

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California Expands Medical Cannabis Delivery

It’s no secret that California cannabis is suffering for a variety of reasons, not least of which is the stranglehold on access caused by local control. Local control is never going away in cannabis. It’s one of the linchpins that gets voters to approve cannabis ballot measures (NIMBYs in particular love local control even though they may disagree with the War on Drugs).

Still, this past week, local control got a little bit weaker in California when it comes to medical cannabis delivery with the passage of Senate Bill 1186. While this is a win for medical cannabis patients and medical cannabis retailers that deliver, it doesn’t do anything to help the struggling adult use market– which is really the lifeblood of California’s democratic cannabis experiment. In any event, California is expanding medical cannabis delivery, and that’s a very good thing.

Senate Bill 1186

Senate Bill 1186, alongside other technical fixes to the Medicinal and Adult-Use Cannabis Regulation and Safety Act, creates the Medicinal Cannabis Patients’ Right of Access Act (“Act”). Its main function is that, as of January 1, 2024, no local jurisdiction can

adopt or enforce any regulation that prohibits the retail sale by delivery within the local jurisdiction of medicinal cannabis to medicinal cannabis patients or their primary caregivers, or that otherwise has the effect of prohibiting the retail sale by delivery within the local jurisdiction of medicinal cannabis to medicinal cannabis patients or their primary caregivers by licensed medicinal cannabis businesses in a timely and readily accessible manner, and in types and quantities that are sufficient to meet demand from medicinal cannabis patients within the local jurisdiction . . .

De facto bans

The Act also intelligently prohibits local government’s use of de facto bans on medical cannabis delivery via severe restrictions on:

1. The number of medicinal cannabis businesses authorized to deliver medicinal cannabis in the local jurisdiction.
2. The operating hours of medicinal cannabis businesses.
3. The number or frequency of sales by delivery of medicinal cannabis.
4. The types or quantities of medicinal cannabis authorized to be sold by delivery.
5. The establishment of physical premises from which retail sale by delivery of medicinal cannabis within the jurisdiction is conducted by a licensed non-storefront retailer (except that this prohibition doesn’t require the establishment of additional physical premises in a local jurisdiction that allowed medicinal cannabis retail as of January 1, 2022, and in which at least one physical premises engaged in the retail sale of medicinal cannabis, whether storefront or delivery, is already established).

Reasonable regulation

Reasonable regulations via local government police powers are still protected. Meaning, despite not being able to kill of medical cannabis delivery, local governments can still engage in regulations for zoning, local licensing, public health and safety restrictions, and taxes.

Enforcement

The Act empowers the following persons/entities to take civil action to enforce it:

1. qualified patients and their primary caregivers (as defined under the Compassionate Use Act) that seek to purchase medical cannabis in the local jurisdiction;
2. the State Attorney General; and
3. medical cannabis businesses “that seek to offer medical cannabis for sale in the local jurisdiction.” This really means Type 9 or 10 M-licensees only (i.e., brick and mortar retailer that can deliver or non-storefront retailer that only delivers).

I am happy to see medical cannabis delivery and increased access for patients who live in cities and counties that refuse to get on board with cannabis legalization. My hope though is that eventually we see a bill come through for delivery access for adult use cannabis in California.

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Looking for Las Vegas cannabis lounges? More than 20 could open soon

Planet 13 and other megastores may have lounges open soon—unless casinos can find another way to delay them.

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House of Kush to Go Global with Clever Leaves, Bringing Classic Strains to the Masses

Classic genetics such as Bubba Kush Pre-98 and OG Kush varieties will be available on a global scale, as two powerhouses team up. On September 21, Colombia-based multinational juggernaut Clever Leaves announced a partnership with legacy brand House of Kush, to be the exclusive grower and distributor of genetics globally.

Clever Leaves will produce genetics for House of Kush—thus expanding their reach outside of the United States and Canada.

Clever Leaves will cultivate House of Kush’s genetics at facilities in Colombia and Portugal over the course of the next three years. Clever Leaves’ footprint is global with smokable flower already being sold in Germany, Israel, and Australia.

Clever Leaves will produce House of Kush’s signature strain—Bubba Kush Pre-98—as well as other classics such as San Fernando Valley OG Kush. Different theories abound, but Bubba Kush appeared on the market in the ‘90s, noted by its sedative effects. People have turned to it to help with pain, anxiety, and insomnia.

The scale is massive: In Colombia, Clever Leaves boasts 18 hectares (44.4 acres) of cultivation. More importantly though, the company holds European Union Good Manufacturing Practices (EU GMP) Certification, a Good Manufacturing Practices (GMP) Certification by Colombia National Food and Drug Surveillance Institute – Invima, and Good Agricultural and Collecting Practices (GACP) Certification.

In Portugal, Clever Leaves operates on about nine million square feet of land, with 260,000 square feet of greenhouse facilities. They also have regulatory privilege there with a license from INFARMED I.P., the Portuguese pharmaceutical regulatory authority, with (EU-GMP) certification and are (GACP) certified.

Courtesy House of Kush

House of Kush Genetics

The partnership will deliver House of Kush’s genetics to a wider market. “Going international was really a big step,” says House of Kush co-founder and Chief Sales Officer Steve Gardner. “Clever Leaves do such good work. And we’ve been so impressed with them. And we’ve really been working on this deal for almost a year. But when you get plugged in with a group like that, that can take you all over the place.” Gardner’s roles as serial entrepreneur, advisor, investor in sports and entertainment date back 30 years.

“I would echo that sentiment and also just bring in the point that other countries are more quickly adopting and having more open, flexible laws than what we’re experiencing currently in the U.S.,” says House of Kush co-founder and Chief Executive Officer Reggie Harris. “So having the opportunity to get there early in our growth strategy not only helps us improve our status as a U.S. company, but everybody’s in the game to be able to spread that knowledge and the product and be able to get out there. So [it’s as much of an] exposure type thing as it is a financial benefit as well, that the two kind of go together. It’s not one without the other.” Harris’ background as a senior executive in sports and entertainment goes back two decades.

“Our first introduction to Bubba Kush was actually through Matt Bubba Berger, who was one of the original cultivators, and obviously Bubba Kush was part of that founding group that came up with OG Kush as well,” Harris adds. “And I was looking at it and reached out to Steve [Gardner] and said, ‘You know, I got this interesting call, product opportunity. Let’s go sit down and talk about it.’”

Protecting those genetics is another story. While House of Kush has explored blockchain technology and other ways of protecting their genetics, continuing to develop their reputation as a brand is more valuable.

“The biggest protection for us is quality assurance,” Harris adds. “We’ve created a kush certified program, to where we go through and we tell people, these are the recommended ways of growing the genetics, this is the proper way, the proper soil, the proper water, all that type of stuff, because we know ultimately, right now, federally, we can’t protect it, it’s going to be some somebody could take it, we will lose more money trying to defend it, then we will just go on out being better than they are. So we spent a lot of time just trying to have the great genetics and the great SOPs around that to make sure that it comes out right on the other side and up to our standard.”

Gustavo Escobar / Courtesy Clever Leaves

Regulatory Perks of Going International

Clever Leaves’ footprint is all over the globe, but each facility has a distinctive purpose. “We have two facilities, one in Colombia, one in Portugal,” says Julián Wilches, co-founder and Chief Regulatory Officer of Clever Leaves. “The Portugal facility is focused on flower. And in Colombia, the Colombian facility has been focused on extracts, raw materials, and finished products such as oils. Now, we have the opportunity, also of exporting flower from Colombia, which is something that we plan to do in the coming months. But now it is very important for us and we’re going to have access to additional genetics.”

One of Clever Leaves’ advantages is holding certifications in Europe. But one of the keys to growth is expanding internationally to improve chances of success.

“If you cultivate in the U.S., you cannot export it, because of the federal prohibition in the U.S.,” says Gustavo Escobar, co-founder and Chief Operating Officer of Clever Leaves. “So the fact that we can cultivate in Colombia and export it for medicinal purposes, opens the global market. We’re focused on four markets in addition to the U.S.: Australia, Israel, Germany, and Brazil. In Brazil, we cannot sell flower. So I would say three markets for flower: Israel, Australia, and Germany. But there are additional markets like Portugal and Italy, U.K., Ireland, most likely France, and Spain. Now we have Thailand. So the world is moving towards medicine and medicinal legalization.”

The partnership benefits both companies in ways that were not possible before.

“Working together, you can do better things,” Wilches adds. “So partnering with people with good genetics, and having the capabilities that were described—that will give us a better opportunity of success in those markets. So we believe in partnerships and we believe in working together and creating long-term relationships for being in the market in the long term with really high quality and good product.”

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Pennsylvania Cannabis Policy Summit Brings Together Cory Booker, John Fetterman, and More

Held at Temple University in Philadelphia on Sept. 23, the summit examined current cannabis policy in Pennsylvania, both at the state and federal level, as well as the new Cannabis Pardon Program. The event was made possible by Diasporic Alliance for Cannabis Opportunities (DACO), as well as Black Cannabis Week, which was held between Sept. 18-25. In addition to Sen. Booker, numerous political representatives such as Sen. Sharif Street, Rep. Austin Davis, Rep. Jordan Harris, Rep. Darisha Parker, Rep. Chris Rabb, Former City Councilmember of Philadelphia Derek Green, and City Council member Curtis Jones were invited to participate in the discussion.

At the meeting, Booker explained how progress has been made toward legalization, but there is still work to be done. “With a majority of Americans on both sides of the aisle in support of legalization, we know that this has opportunities,” Booker said. “We need, though, to continue to evolve our focus, our vision, and our strategies to make sure that economically, socially—and especially within our criminal justice system—we are expanding fairness, equality and opportunity.”

He explained that the federal government is lagging behind in embracing legalization nationwide, which is the reason he chose to sponsor the current Senate Legalization Bill from Majority Leader Chuck Schumer and Senate Finance Committee Chairman Ron Wyden. “We know there is a historic opportunity right now for our country to rectify past wrongs and to create a more just [and] fair America with more opportunity,” Booker said. “There’s still mountains to climb, but I know we will make progress. I know [we] will make it to the mountaintop. I know we will get to a point in this country, because of our labors, where justice rolls down like water and righteousness like a mighty stream.”

The second half of the conference featured the “PA Pardons Process,” which included Sen. Sharif Street as moderator, in addition to Fetterman, Luis Gonzalez of I AM More, Community College of Philadelphia, and Board of Pardons Secretary Celeste Trusty. Pennsylvania’s Marijuana Pardon Project was announced on Sept. 1 by Pennsylvania Gov. Tom Wolf.

Fetterman, the chair of the program, described the state of Pennsylvania as “a place for second chances,” which will “help people get pardons quickly for stupid weed convictions.” According to Secretary Trusty, over 2,200 residents have applied so far, with 400 having come through just last week.

“This pardon project has the potential to open the door for thousands of Pennsylvanians—the college grad looking to start their career, the grandparent who’s been wanting to chaperone a field trip, or any Pennsylvanian who’s been told ‘no’ for much needed assistance. Now’s your chance,” Gov. Wolf said in his initial announcement. He also added that applicants will be notified by Oct. 13 if they will receive a public hearing. Sometime in mid-December, the Board of Pardons will vote on individual cases, and then will recommend the finalists to Wolf for final review.

Those who have a cannabis-conviction on their record have between Sept. 1-30 to submit an application to be pardoned. Qualifications include convictions relating to possession, intent to distribute small amounts of cannabis, paraphernalia-related offenses and much more. However, there are a few exceptions that could disqualify an applicant for this limited-time offering, such as being enrolled in a rehab program, being actively on probation or parole, being convicted of driving under the influence of cannabis, and more.

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The Greens Say Parliament Can Legalize Pot in Australia

The Australian Greens say that parliament has the power to legalize recreational pot in the country as the party prepares its bid for cannabis reform.

According to The Guardian, the Greens––currently the minor party in Australia––have received advice from constitutional lawyer Patrick Keyzer, who contends that parliament could override state laws on the matter.

“The advice suggests that there are three commonwealth heads of power that would enable it to legalise and regulate cannabis use, with the clearest pathway via a part of section 51, which relates to copyrights, patents of inventions and designs, and trademarks,” The Guardian reported.

Under the aforementioned section 51, parliament has the power to “to make laws for the peace, order, and good government of the Commonwealth with respect to: trade and commerce with other countries, and among the States; taxation; but so as not to discriminate between States or parts of States; bounties on the production or export of goods, but so that such bounties shall be uniform throughout the Commonwealth; borrowing money on the public credit of the Commonwealth; postal, telegraphic, telephonic, and other like services; the naval and military defence of the Commonwealth and of the several States, and the control of the forces to execute and maintain the laws of the Commonwealth; lighthouses, lightships, beacons and buoys; astronomical and meteorological observations; quarantine; fisheries in Australian waters beyond territorial limits; census and statistics; currency, coinage, and legal tender; banking, other than State banking; also State banking extending beyond the limits of the State concerned, the incorporation of banks, and the issue of paper money; insurance, other than State insurance; also State insurance extending beyond the limits of the State concerned; weights and measures; bills of exchange and promissory notes; bankruptcy and insolvency” among a litany of other areas.

The Guardian reports that Keyzer’s advice centers around the part of the section pertaining to “copyrights, patents of inventions and designs, and trade marks,” saying that it empowers the commonwealth to “regulate cannabis strains as plant varieties and cause them to be listed in a schedule in respect of which the commonwealth has exclusive regulatory control.”

“We’ve been told to wait for cannabis law reform for too long, even when it’s obvious that the majority of harm caused is by policing and the war on drugs, not the plant,” David Shoebridge, a spokesperson for the Greens, said in a statement on Monday, as quoted by The Guardian.

“Recreational cannabis is enjoyed by millions in Australia and around the world, and pretending otherwise is increasingly ridiculous,” Shoebridge added. “At least 40% of Australians have used cannabis and any law that makes almost half of us criminals needs to go.”

A poll earlier this year found that Australians were split when it comes to the matter of changing the country’s marijuana laws, with 50% saying they are in favor of full cannabis reform.

The pollster, Essential Research, noted that represented a huge increase from 2013, when only about 25% said they favored full reform.

Meanwhile, a study released this summer by the Australian Institute of Health and Welfare found that a higher percentage of people in the country favored smoking weed than using tobacco.

The Greens aren’t the only party pushing for cannabis reform. Earlier this year, Australia’s single-issue Legalize Cannabis Party exceeded expectations in the country’s senate races and came close to gaining a seat.

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Trulieve launches Khalifa Kush Cannabis in Florida through exclusive partnership with Wiz Khalifa

Trulieve is partnering with Wiz Khalifa to bring his beloved Khalifa Kush to Florida medical dispensaries.

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South Carolina Farmer Sues State Over Destroyed Hemp Crop

A South Carolina farmer has filed a lawsuit against the state over the destruction of his hemp crop in 2019.

The suit, filed on September 16 by John Trenton Pendarvis, alleges that a trio of state agencies––the South Carolina Law Enforcement Division, Department of Agriculture, and attorney general’s office––“all denied him due process after Department of Agriculture officials discovered unreported hemp crops during a check of his Dorchester County property on July 30, 2019,” according to the Associated Press.

The Associated Press reports that Pendarvis asserts in the complaint that he “filed an amendment application and said that extensive droughts had forced him to move his crop’s location,” but “Derek Underwood, assistant commissioner of the Agriculture Department’s Consumer Protection Division, insisted that the farmer’s oversight was a ‘willful violation’ of the state’s hemp farming program” and “then began seeking approval to destroy the crop.”

Pendarvis was the first person to be charged under South Carolina’s law governing hemp cultivation.

The 2019 law requires farmers to “report their hemp crops’ coordinates to the South Carolina Department of Agriculture” and bars them from growing “plants that [exceed] the federal THC limits.”

Pendarvis’ lawsuit highlights the law’s lack of clarity and the confusion over how it should be enforced.

The Associated Press has more background on the case:

“After failing to get a local judge to sign their seizure and destruction order, [South Carolina Law Enforcement Division] agents — without detailing their intent to destroy the crop — obtained an arrest warrant for Pendarvis from another magistrate. Emails shared in the complaint show that agents took this action despite the original judge offering to hold a hearing in the matter, which [South Carolina Law Enforcement Division]’s general counsel Adam Whitsett declined. Officials in the attorney general’s office then amended their guidance to agree with [South Carolina Law Enforcement Division]’s conclusion that the hemp farming participation agreement — which allows the destruction of crops growing in an unlicensed area — amounted to the ‘valid consent’ necessary to pursue their plan.”

He filed a separate lawsuit last year “in Dorchester County against the S.C. Commissioner of Agriculture, the Dorchester County Sheriff’s Office and the South Carolina Law Enforcement Division saying both his arrest and the destruction of his crops were illegal,” according to The State newspaper.

That complaint included “claims of unlawful arrest, assault and battery, abuse of process, defamation and negligence,” the newspaper reported.

Industrial hemp production was made legal at the federal level when Congress passed the 2018 Farm Bill, prompting every state in the country to get in on the new “cash crop.”

But despite its own hemp law, South Carolina continues to take a hardline against cannabis, and is one of the last remaining states that has not legalized medical marijuana.

A group of lawmakers there tried to change that in this year’s legislative session.

The state Senate approved a medical cannabis bill in February, but the measure went up in smoke in the state House of Representatives in May.

The bill’s sponsor, Republican state Sen. Tom Davis, has been championing medical cannabis treatment in the state for years.

“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 said in January after introducing the bill in the chamber. “The people of South Carolina deserve to know where their elected officials stand on this issue.”

He applauded his colleagues in the state Senate after it won approval in the chamber.

“Even those that were opposed to the bill, I mean, they could’ve just been opposed. They could’ve ranted against it, they could’ve tried to delay things. They didn’t. They expressed their concerns, but what they then did is dug in and tried to make the bill better. And so, what you saw over the last three weeks is what’s supposed to happen in a representative democracy,” Davis said at the time.

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