How to boil your grinder to clean it and get high at the same time

Did you know you can catch a buzz while cleaning your grinder? Here's how.

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Reminder: Free Webinar Tomorrow! New York Cannabis Q&A

On Wednesday, February 1, 2023 at 2pm EST, Simon Malinowski will host a free, hour-long webinar to answer any questions about New York’s adult-use cannabis rules and regulations.

Simon is our lead New York cannabis attorney, based in Manhattan. He will cover a variety of topics including the application process, anticipated timelines and license types.

Please feel free to submit your questions in advance. Questions will also be taken throughout tomorrow’s presentation.

Register Here

In the meantime, check out our extensive blog coverage on these topics, including yesterday’s post by Simon: New York Cannabis: State of the State 2023. It’s finally time!

The post Reminder: Free Webinar Tomorrow! New York Cannabis Q&A appeared first on Harris Bricken Sliwoski LLP.

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7 high-energy cannabis strains to help you get active and fight fatigue

The 7 most energizing weed strains with reviews from real Leafly users.

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Cannabis Pilot Program Kicks Off in Switzerland

Weed is for sale in one of the largest cities in Switzerland—for a select few, anyway.

The country officially launched its pilot cannabis project on Monday, clearing the way for a few hundred selected participants to purchase marijuana for recreational use in various pharmacies throughout the Swiss city of Basel.

Swiss officials last year gave the go-ahead for the pilot project, with the country’s “Federal Office of Public Health [saying] the idea of the project is to increase understanding of ‘alternative regulatory forms,’ such as regulated sales at pharmacies that could be a basis for future legislation,” according to the Associated Press.

“Basel’s project, which involves the local government, the University of Basel and the city’s University Psychiatric Clinics, will get under way in late summer,” the AP reported last year. “Nearly 400 participants will be able to buy various cannabis products at selected pharmacies in Basel, the city government said. During the 2 1/2-year study, they will be questioned regularly on their consumption of the substance and on their physical and mental health.”

Participants in the program will be strictly monitored by government regulators, and they are barred from sharing the cannabis with anyone outside the program. 

Vigia AG, a Swiss company that provides track and trace software, said this week that it “has developed the Cannabis Dispensary System in partnership with the Federal Office of Public Health (FOPH) in order to reliably document the dispensing of the products,” which in turn “makes it possible to track the cannabis goods transparently and gives the foundation for scientific research.”

“We are in an emerging industry where various paths to legalisation are currently being discussed. With a structured legalisation process, maximum conformity and transparency, Switzerland is setting an example. With our existing Cannavigia software and the Cannabis Dispensary System, we provide the various stakeholders involved with the necessary tools to track and document every step along the supply chain. We are proud to be part of the Swiss pilot projects and this historic milestone,” Philipp Hagenbach, the chief operating officer of Vigia AG, said in a press release on Monday.

The release contains more details on Vigia AG’s involvement in the landmark Swiss program:

“Vigia AG is the FOPH’s official track & trace partner for the pilot trials. This kind of partnership between the government and a commercial business in the cannabis industry is unique to the sector. Vigia AG has added a Cannabis Dispensary System (CDS) to its existing Cannavigia software solution. Thanks to the combination of the two, the companies cultivating cannabis for the projects can monitor their cultivation and supply chain, which serves to ensure the quality of the final products.

“Those in charge of the projects can use the software to register the study participants, with those responsible for the Weed Care study starting this as early as September 2022. It allows the dispensaries to keep track of sales as well as individual quantities dispensed to participants, guaranteeing that only authorised persons can purchase the products. This ensures consumer and especially minor protection and results in a transparent and traceable supply chain which can also be maintained in a future legalised environment. The Cannabis Dispensary System provides the FOPH with an overview of the circulation of cannabis in Switzerland and supports the reporting obligation to the UN’s International Narcotics Control Board. The data of the participants are always stored pseudonymously in order to ensure data protection.”

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Free Cloud 9 gummies make Valentine’s Day lovelier

Vena is celebrating Valentine's Day with free THC+CBD Cloud 9 gummies. Feel heavenly with these mood-boosting bites.

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Can the Republican House pass cannabis reform? Don Murphy thinks so, and he’s fighting to make it happen

Liberal arguments won't sway votes among House GOP members. But Don Murphy knows how cannabis reform and legalization makes sense to conservatives.

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Hong Kong Cannabis: Bad News for CBD

Hong Kong and the negative developments taking place there have been the subject of many posts in our sister China Law Blog. But now it is our turn to report on the Fragrant Harbor. Unfortunately the news is also bad on the cannabis front, just like on the political and economic ones.

From February 1 onward, CBD (cannabidiol) will be regarded as a “dangerous drug” in Hong Kong, subject the provisions of the Dangerous Drugs Ordinance (DDO). This means that any activities involving CBD will be unlawful.

According to the Hong Kong Government, “under the DDO, trafficking (including importing and exporting) and illicit manufacturing of CBD is liable to a maximum penalty of a fine of $5 million [USD 638,000] and life imprisonment.” Yes, you read that right. Bringing CBD products into Hong Kong could get you locked up at Shek Pik Prison for good.

To put this in perspective, Hong Kong does not have capital punishment (for now). This means that a CBD “trafficker” could potentially receive the same sentence as that of a heroin trafficker, and indeed that of someone like Henry Chau.

Meanwhile, “possession and consumption of CBD in contravention of the DDO will be subject to a maximum penalty of a fine of $1 million [USD 128,000] and imprisonment of seven years.”

Hong Kong’s CBD crackdown makes no sense. It would be one thing for the city to simply ban CBD products: After all, here in the United States many CBD products are unlawful at the federal level. However, those CBD products are unlawful because of food and drug safety laws, not because they are considered narcotics.

One reason presented by the Hong Kong authorities for lumping CBD with heroin and cocaine is that CBD can naturally decompose or be intentionally converted into THC. According to one study, CBD can turn into THC after ingestion. The study, however, notes that such degradation is unlikely to occur through transdermal delivery of CBD, raising the question of why CBD cosmetics should be considered “dangerous drugs”. In any case, the terms “life imprisonment” and “CBD” should not be used in the same sentence, even in the case of ingestibles.

It is beyond the remit of this blog to delve into Hong Kong politics, though the China Law Blog is certainly keeping track of what is happening. It does appear, however, that China’s tightening hold over Hong Kong is increasingly reflected in the city’s approaches to law enforcement. To be sure, the legalization of recreational or even medical cannabis is not something that we ever expected to occur anytime soon in Hong Kong or any other Chinese territory. Yet Hong Kong’s wholesale criminalization of CBD is without doubt one of the worst legal developments we have seen concerning CBD and cannabis generally in recent years. It is sad beyond words to see this happening in a city long characterized for its pragmatic approach to all manner of issues.

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Mississippi Celebrates Launch of Medical Cannabis Sales

A few Mississippi dispensaries were ready to open to customers on Jan. 25. Mississippi Trade Association Executive Director Melvin C. Robinson stood outside one of the state’s licensed dispensaries, The Cannabis Company, to welcome customers. “It’s a very exciting day today. History has been made in Brookhaven,” Robinson said.

The first customer at Brookhaven-based The Cannabis Company was Debbie McDermott. “I do suffer from chronic pain and I have some other issues,” she said about why she became a medical cannabis cardholder. The dispensary experienced a setback due to issues with the METRC point-of-sale system, which caused a two-and-a-half-hour delay before McDermott could purchase her medicine.

The Cannabis Company co-owner Le Anne Penn told The Daily Leader that she changed her career to enter the cannabis industry. “It has been a fun journey. I have enjoyed it. The business will be different from what I was doing before,” Penn said. “I was a body technician for 40 years. I decided to pursue this because I saw the potential in the industry and the need in people. Hopefully this will help people who need it or can’t take opioids or other medicines.”

Other news outlets reported dispensaries selling on Jan. 25 as well, with more expecting to receive their shipments over the weekend.

According to Mississippi Medical Marijuana Association Executive Director Ken Newburger, the launch of this program has been a long time coming. “We have been working since 2018 to get medical marijuana in the hands of patients in Mississippi, and it’s surreal to see it finally come to fruition,” said Newburger. “This is only the beginning. More and more businesses will be harvesting, testing, and getting their products on the shelves in the coming months; therefore, more patients will have access to this medicine at certified businesses all across the state.”

Medical cannabis cardholders may purchase up to 3.5 grams per day, six days a week, or a total of 3 ounces every month. Currently, the state allows patients to use medical cannabis if they suffer from one of the approved qualifying conditions. This includes a total of 20 conditions,  such as cancer, Parkinson’s disease, glaucoma, Crohn’s disease, autism, and muscular dystrophy. In addition to that, six more conditions and symptoms qualify as well, including wasting syndrome, severe or intractable nausea, seizures, and severe and persistent muscle spasms, such as those experienced with multiple sclerosis.

Voters originally approved medical cannabis during the election in November 2020 with Initiative 65. In April 2021, the Mississippi Supreme Court allowed opponents of medical cannabis legalization to challenge the vote results, which led to the court striking down Initiative 65 in May, stating that it was constitutionally flawed. Legislators continued to discuss medical cannabis throughout the year, and by September they made a move to re-implement a plan to legalize medical cannabis.

Mississippi Gov. Tate Reeves stalled the progress of a new medical cannabis bill in November 2021, but he finally agreed to the details of a new law in January 2022, and signed it in February. “There is no doubt that there are individuals in our state who could do significantly better if they had access to medically prescribed doses of cannabis,” Reeves said in a press statement. “There are also those who really want a recreational marijuana program that could lead to more people smoking and less people working, with all of the societal and family ills that that brings.”

In October 2022, the state has issued provisional licenses to 491 work permits, 138 dispensaries, 47 cultivators, eight processors, four transportation businesses, three “disposal companies,” and two testing facilities. 

As of December 2022, more than 2,311 applications were submitted, with 1,321 approved, and 990 still being processed. As of Jan. 23, more than 1,700 patients have been approved.

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Did Twitch ban top streamer Kai Cenat for dozing off after weed edibles?

The Amazon-owned live streaming platform just banned one of its most popular broadcasters. His presumed crime: Vibing out on an edible.

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Weed is not a gateway drug, says new study

In a new study, researchers help dispel the idea of cannabis as a gateway drug, a win for the pro-legalization movement.

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Argentina Launches New Agency To Boost Cannabis Industry

Argentina officially launched a new government agency on Wednesday as part of an effort to bolster the country’s medical marijuana and hemp industry. 

Reuters reports that the agency, known as the Regulatory Agency for the Hemp and Medicinal Cannabis Industry, or ARICCAME, represents “the first working group of a new national agency to regularize and promote the country’s nascent cannabis industry, which ministers hope will create new jobs and exports generating fresh income for the South American nation.” 

“This opens the door for Argentina to start a new path in terms of industrial exports, on the basis of huge global demand,” said Argentina’s economy minister Sergio Massa at an event marking the launch of the new agency.

According to Reuters, “Massa said that the agency would from Thursday begin regularizing programs and coordinating with various provinces and [the] industrial sector, adding Argentina already counted on demand for projects linked to the agro-industrial sector.”

On the official website for ARICCAME, the agency outlines its mission and objectives.

“We are the Agency that regulates the import, export, cultivation, industrial production, manufacture, commercialization and acquisition, by any title, of seeds of the cannabis plant, cannabis and its derivative products for medicinal or industrial purposes,” the website reads, via an English translation. 

The website lists the following “general objectives” for the agency: “Establish through the respective regulations, the regulatory framework for the entire production chain and national marketing and/or export of the Cannabis Sativa L. plant, seeds and derivatives for use in favor of health and industrial hemp; Promote a new agro-industrial productive sector for the commercial manufacture of medicines, phytotherapeutics, food and cosmetics for human use, medicines and food for veterinary use, as well as the different products made possible by industrial hemp; Generate the framework for the adaptation to the regulatory regime, of the cultivation and production of cannabis derivatives for use in existing health, guaranteeing the traceability and quality of the products in order to safeguard the right to health of the users of medical cannabis; Reintroduce hemp in Argentina and all its derivatives: food, construction materials, textile fiber, cellulose and bioplastics with low environmental impact; [and] Promote scientific research and sectoral technological progress, promoting favorable conditions for these existing industries in our country.”

ARICCAME’s specific objectives include: “Establish clear rules that provide legal certainty to the sector and encourage federal participation; Articulate through agreements and conventions with other State entities with intervention in the matter: INASE, SENASA, INTA, INTI, AFIP, INAES, BCRA, UIF, National Universities, etc; Determine the system of licenses and administrative authorizations for the productive chain; Generate quality standards that safeguard the right to health of users and consumers of cannabis/hemp products; [and] Control non-compliance with the regulatory regime.”

Argentine policymakers legalized cannabis oil for medical use in 2017. Three years later, the country legalized home cannabis cultivation for medical marijuana patients. 

The launch of the new agency is part of a border effort by the Argentine government to continue to reform the medical cannabis program, something that the South American country identified as a priority last year. 

According to Reuters, the newly launched agency will be helmed by Francisco Echarren, who “said the industry could generate thousands of new jobs, as well as create technological developments and new products for export.”

“We have a huge challenge ahead of us,” Echarren said, as quoted by Reuters, “not only getting a new industry on its feet, but giving millions of Argentines access to products that improve quality of life.”

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New York Cannabis: Social and Economic Equity Applicants

As we previously broadly summarized on December 27, 2022 (here), in late December 2022, the Office of Cannabis Management (“OCM”) released its first proposed adult-use cannabis rules and regulation for New York (the “Proposed Regulations”). The official document is 282 pages, so we won’t cover every detail. But we will highlight the big-ticket items, significant issues that all applicants should be aware of, and the license application process as a whole.  This post will go into detail the Social and Economic Equity sections and commentary provided for in the Proposed Regulations.  Keep in mind, the Proposed Regulations are still pending as OCM receives the final public comments to the Proposed Regulations.

For anyone considering applying for an adult-use license, we reiterate our recommendation of hiring an experienced, local cannabis attorney. At a minimum, understanding the overall framework of the licenses and the licensing process is a precursor to an in-depth consultation on a license application.

One of the more notable topics covered in depth by the Proposed Regulations is the establishment of a social and economic equity applicant, and licensee. If you remember, the Marijuana Regulation and Tax Act (“MRTA”) established a goal to award 50% of all adult-use cannabis licenses to social and economic equity applicants.

During the evaluation of an application, the OCM may prioritize application submission, review, selection and issuance by social and economic equity status. Those applications that demonstrate that the applicant is seeking to qualify as a social and economic equity licensee are eligible for extra priority.

In short, to qualify as a social economic equity applicant, an applicant must demonstrate, through documentation provided to the OCM, that that sole control of the applicant is held by either:

1. an individual from a community disproportionately impacted by the enforcement of cannabis prohibition;
2. a minority-owned business;
3. a women-owned business;
4. a distressed farmer; or
5. a service-disabled veteran owned business.

The Proposed Regulations provide for specific documents required to establish the status of the social economic applicant, with respect to any of the above.

Note that “sole control” in this context may be a misnomer. It does not mean that the applicant is the sole owner of the license, but that the social and economic equity applicant exercises the authority to, among other things: exercise authority over the business, and materially influence the day-to-day business decisions. Further, no other person or persons may exercise or have the ability to control the majority of voting rights, or remove the applicant.

If, at any time after a social and economic equity applicant has been granted a license, the Office determines that the sole control requirement is violated, the Office may institute an action to suspend or revoke such license, provided the Office provides an opportunity to cure.

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Tennessee Bill Would Regulate the Sale of Delta-8 THC

Tennessee leaders are again putting forth a bill that would regulate hemp-derived cannabinoids like delta-8 and delta-10 THC, after a previous attempt failed last year. Some hemp advocates applauded the bill, while others would rather simply legalize cannabis, naturally rich in delta-9 THC.

State House Majority Leader William Lamberth (R-Portland) and Sen. Richard Briggs, (R-Knoxville) introduced a bill on Tuesday to regulate products containing hemp-derived cannabinoids, such as delta-8 and delta-10 THC—his second attempt to do so.

House Bill 403 would tax and regulate cannabinoids derived from hemp via what some describe as synthetic processes. Typically products with delta-8 THC are marketed as being somewhat psychoactive, with effects weaker but similar to delta-9 THC.

“Delta-8 is a legal substance that can be sold and packaged in the form of candy or gummies; it often has a very high concentration of THC,” Rep. Lamberth stated. “There are no regulations and no legitimate way for anyone to know exactly what they are buying. Nothing in our current law prohibits a child from purchasing delta-8.”

The bill would ban the sale of hemp-derived cannabinoid products to people under the age of 21; adds a 5% additional sales tax to any product sold at a store; and create a licensing, quality testing, regulatory and enforcement process through the Tennessee Department of Agriculture.

“We need to regulate this because the horse is out of the barn,” Sen. Briggs said. “This stuff is everywhere, and we can’t put that genie back in the bottle.”

What is Delta-8 THC?

The idea is that hemp-derived CBD can be converted to other compounds, frequently being marketed as psychoactive. This doesn’t mesh with the general U.S. definition of hemp, bred specifically to not be psychoactive.

Delta-8 THC occurs naturally, but only in trace amounts: According to Chemical & Engineering News, cannabis plants naturally contain just 0.1% delta-8 THC or less—though some plants contain as much as 1%. Jeffrey Raber, cofounder and CEO of the Werc Shop told C&E News that there isn’t enough delta-8 THC found naturally in hemp to be economical for extraction.

But hemp growers in the state are supportive of the bill despite some suspicion about emerging hemp-derived cannabinoids. “We support anything that doesn’t put burdensome regulations on the industry,” Kelley Hess, executive director of the Tennessee Growers Coalition, said.

While hemp growers may support delta-8 products, others do not.

Artists such as Margo Price support legalization, but don’t support hemp-derived cannabinoid products in Tennessee. Opponents don’t like the way certain cannabinoids are extracted from hemp, which usually means altering the CBD molecule, which is found in hemp in larger amounts, using natural solvents and acids.

Tennessee! Legalize cannabis, grow it, eat it, smoke it and TAX IT! People are just gonna cross state lines and do it anyway. This Delta 8 shit had got to go! https://t.co/8CJKwDRk5x

— Margo Price (@MissMargoPrice) December 17, 2022

Attempt to Regulate Delta-8 Last Year

While some states moved to restrict hemp-derived cannabinoids, such as Utah, Tennessee would be taking a much different approach by regulating it instead.

Rep. Lamberth sponsored an earlier attempt to regulate delta-8 THC and similar compounds. Some Tennessee lawmakers and the Tennessee Bureau of Investigation said that by regulating delta-8, the state would be legitimizing the industry. 

House Bill 1927, which was introduced previously, would regulate delta-8 by making it illegal in most cases outside trace-level concentrations. The bill was amended in April 2022 to be more specific to include other hemp-derived THCs such as delta-9 and 10 and the derivative hexahydrocannabinol (HHC), but exclude non-THC hemp cannabinoids such as CBD.

Tennessee is one of 11 non-green states that hasn’t legalized, regulated, or decriminalized cannabis in some form. 

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High Design by LMC: Discover YouTube’s best cannabis documentaries

In the ever-growing weed media landscape, it can be hard to find people who get the culture and community right. Documentary journalist Luc Carlin is one of them.

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Breaking: FDA Says “No” to CBD Foods and Dietary Supplements

Since the passage of the 2018 Farm Bill, the hemp CBD industry has been eagerly awaiting FDA CBD regulations. In that time, FDA convened a working group to study how the agency would regulate CBD foods and dietary supplements. As of January 26, 2023, the FDA concluded that it will NOT regulate CBD foods or dietary supplements.

FDA and the States on CBD since the Farm Bill

Before jumping into the post, it bears noting that the FDA has taken the position, literally since the day the 2018 Farm Bill was passed, that CBD foods and dietary supplements violate the Food, Drug & Cosmetic Act. Nevertheless, it has issued only periodic warning letters and taken minimal actions against the CBD industry beyond these letters. The agency has also tended to focus more on egregious misconduct.

In the face of the FDA’s limited responses, states have filled the void with their own regulations, though we always knew the FDA was considering CBD food and dietary supplement regulations.

Now, the FDA is declining to move forward with regulations but has indicated that it would work with Congress if it passes separate CBD legislation. This is because the FDA concluded that its existing regulatory framework was insufficient for CBD and that it would need a new legislative framework through which to introduce regulations.

What FDA said today

Something that should give hope to the industry is that the FDA seems to have put a lot of thought into what CBD legislation should look like:

A new regulatory pathway would benefit consumers by providing safeguards and oversight to manage and minimize risks related to CBD products. Some risk management tools could include clear labels, prevention of contaminants, CBD content limits, and measures, such as minimum purchase age, to mitigate the risk of ingestion by children. In addition, a new pathway could provide access and oversight for certain CBD-containing products for animals.

The FDA used the word “regulatory framework,” but again, this would need to come through congressional legislation in light of the FDA’s refusal to move forward.

So why did the FDA conclude that it couldn’t regulate CBD foods or dietary supplements? Here’s what it said:

The FDA’s existing foods and dietary supplement authorities provide only limited tools for managing many of the risks associated with CBD products. Under the law, any substance, including CBD, must meet specific safety standards to be lawfully marketed as a dietary supplement or food additive.

The working group, which I chair, has closely examined studies related to the CBD-based drug Epidiolex, published scientific literature, information submitted to a public docket, as well as studies both conducted and commissioned by the agency. Given the available evidence, it is not apparent how CBD products could meet safety standards for dietary supplements or food additives. For example, we have not found adequate evidence to determine how much CBD can be consumed, and for how long, before causing harm. Therefore, we do not intend to pursue rulemaking allowing the use of CBD in dietary supplements or conventional foods.

CBD also poses risks to animals, and people could be unknowingly exposed to CBD through meat, milk and eggs from animals fed CBD. Because it is not apparent how CBD products could meet the safety standard for substances in animal food, we also do not intend to pursue rulemaking allowing the use of CBD in animal food. A new regulatory pathway could provide access and oversight for certain CBD-containing products for animals.

The status of CBD regulation won’t change anytime soon

It’s frustrating that after more than four years of waiting, the FDA is still in the same spot of claiming more information is needed. But this shouldn’t be shocking to anyone familiar with the FDA in general. It can take years – even decades – to get approval of new drugs. And in the FDA’s view, CBD doesn’t fit neatly into any of the categories of things it regulates.

For this reason, the FDA isn’t moving forward with CBD regulations and denied “three citizen petitions that had asked the agency to conduct rulemaking to allow the marketing of CBD products as dietary supplements.”

One final thing that the FDA said that’s worth noting is:

The FDA will continue to take action against CBD and other cannabis-derived products to protect the public, in coordination with state regulatory partners, when appropriate. We will remain diligent in monitoring the marketplace, identifying products that pose risks and acting within our authorities. The FDA looks forward to working with Congress to develop a cross-agency strategy for the regulation of these products to protect the public’s health and safety.

I’m not sure if there’s any “there” there. As mentioned, the FDA’s enforcement priorities to date have been relatively minor compared to what they could be if the FDA really wanted to swing the hammer. It may pick up the pace, but then again, it may not.

While Congress is unlikely to do anything anytime soon (because, well, it’s Congress in 2023), there are definitely some CBD champions in Congress on both sides of the aisle. Hopefully the FDA’s new position spurs them to reach across the aisle and figure this mess out.

In the meantime, and as always, stay tuned to the Canna Law Blog for more FDA updates.

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Huge decision: FDA won’t restrict CBD sales, calls for ‘new regulatory pathway’ to assure safety

FDA officials found that CBD doesn't fit existing regulations. They want Congress to create new rules, and will allow the exiting market to continue.

The post Huge decision: FDA won’t restrict CBD sales, calls for ‘new regulatory pathway’ to assure safety appeared first on Leafly.

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Upstate New York Officials Clash Over New Cannabis Regulations

City and county officials in upstate New York are at odds over the implementation of rules governing the sale and cultivation of marijuana in the community. 

The dispute is between the Niagara Falls City Council and members of the Niagara County Planning Board, and it centers around how the community will enforce the sale of recreational marijuana, which was legalized by the state of New York in 2021. 

The Niagara Gazette reports: “The Niagara County Planning Board unanimously decided to disapprove a zoning text amendment the Niagara Falls City Council approved a month ago, which allows for the cultivation, production and sale of recreational cannabis within the city. Despite this decision, the members knew their actions would have little effect on the city’s implementation. The county board members’ objections ranged from not being specific on locations to the city seeing little financial benefit from having these businesses operate in the Falls.”

Under the ordinance that was approved by the Niagara Falls City Council last month, “cannabis dispensaries engaging in sales only can operate between 8 a.m. and 2 a.m., those that allow on-site consumption may operate from 8 a.m. to 4 a.m., and may not operate more than 70 hours a week,” and retail “dispensaries may not be located within 500 feet of a community facility while consumption dispensaries may not be within 200 feet of a house of worship, 500 feet of a school or ‘community facility,’ and 1,000 feet of similar operations,” according to the Niagara Gazette.

New York’s Office of Cannabis Management issued 36 recreational marijuana dispensary licenses to various businesses and nonprofits in the state in November, but so far, only two retailers––both located in Manhattan––have opened to customers.

The Office of Cannabis Management says that cities, towns, and villages could have opted out of allowing adult-use cannabis retail dispensaries or on-site consumption licenses from operating within their jurisdictions, but those municipalities needed to “pass a local law by December 31, 2021 or nine months after the effective date of the legislation.”

The agency explains: “If a municipality does not opt-out by December 31, 2021, the municipality will be unable to opt-out at a future date. However, a municipality may opt back in, to allow either, or both, adult-use retail dispensary or on-site consumption license types by repealing the local law which established the prohibition. All local laws passed by municipalities opting out of allowing adult-use retail dispensaries or on-site consumption licenses are subject to a permissive referendum as outlined in section twenty-four of the Municipal Home Rule Law. This creates a process allowing voters of the municipality to petition the outcome of a local law, which if successful, will trigger the question of whether or not to approve the local law, to be placed on the ballot at the next general election of state or local government officials for the municipality.” 

No municipality can “opt-out of adult-use legalization,” according to the Office of Cannabis Management.

According to the Niagara Gazette, Kevin Forma, the city planning director of Niagara Falls, “said the directions that all municipalities received from the state are similar to liquor ordinances and the requirements for having a bar,” and that the “state was also restrictive in what the city can do for allowing and disallowing uses.”

“The state is telling us that we cannot restrict this,” Forma said during the planner’s meeting on Monday, as quoted by the Gazette. “We’re developing this to the best of our ability, managing this in conjunction with the state rules and regulations.”

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FREE Webinar, February 1: New York Cannabis Q&A

On Wednesday, February 1, 2023 at 2pm EST, Simon Malinowski will host a free, hour-long webinar to answer any questions about New York’s adult-use cannabis rules and regulations.

Simon is our lead New York cannabis attorney, based in Manhattan. He will cover a variety of topics including the application process, anticipated timelines and license types.

Please feel free to submit your questions in advance. Questions will also be taken throughout the presentation!

Register Here

In the meantime, check out our extensive blog coverage on these topics, including yesterday’s post by Simon: New York Cannabis: State of the State 2023. It’s finally time!

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Nike Challenges Trademark of Hemp Company Slogan ‘Just Hemp It’

Nike is one of the largest footwear and athletic gear companies in the world, known for its familiar slogan “Just Do It.” The company recently issued a trademark complaint on Jan. 18 against a Texas-based CBD company called Revive Farming Technologies, who filed to use the trademark “Just Hemp It” on Dec. 16, 2019.

“JUST DO IT … which has been in use in commerce for more than 30 years, and registered for more than 25 years, is famous within the meaning of Lanham Act Section 43(c), 15 USC § 1125(c),” Nike stated. It is asking the Patent and Trademark Office and Trademark Trial and Appeal Board to deny Revive’s attempt to trademark the phrase “Just Hemp It.”

Nike argues that it owns multiple trademark registrations for the “Just Do It” mark, describing it as “widely recognized and famous,” and that the Revive should not be allowed to trademark “Just Hemp It” because it would lead to confusion and cause injury and damage to Nike.

According to Green Market Report (GMR), Revive already features the phrase on its website followed with a trademark symbol. GMR also states that the website contains language that makes unauthorized medical claims about CBD.

Nike’s “Just Do It” campaign first launched in 1988 by the late Dan Wieden, who has successfully launched other slogan campaigns for companies like Old Spice, Procter and Gamble, and Coca Cola. Apparently Wieden said that “Just Do It” was inspired by the final words of an inmate on death row, who said “You know, let’s do it” before his execution.

Nike has led successful trademark complaints against other companies attempting to use variations of “Just Do It” in the past. In 1992, Nike targeted a company called “Just Did It,” which also sold athletic gear, for trademark infringement. In 2020, Nike went after a business for using “Just Believe It.” More recently, a small business owner who started a succulent shop called JustSuccIt in 2020, was also contacted by Nike regarding trademark infringement.

This hasn’t been an uncommon trend in the cannabis industry either. In August 2017, the glue company known as Gorilla Glue took Gorilla Glue Strains to court. The results meant that strains known as Gorilla Glue #1 or Gorilla Glue #4 would be referred to as GG1 or GG4. 

In February 2018, The Hershey Co. began suing cannabis companies for copyright infringement, and targeted both the Oakland-based Harborside dispensary and a California edibles company called Good Girl Cannabis Co. for selling items with similar Hershey product branding.

UPS targeted cannabis delivery services that were using its acronym, such as United Pot Smokers, UPS420, and THCPlant in February 2019. 

Later in August 2019, Sour Patch Kids targeted illegal cannabis products like Stoney Patch for infringing upon the trademark as well. Cinnabon took on a vape company in October 2019 for selling an e-liquid using the brand’s name, just one month before the Center for Disease Control and Prevention discovered that vaping lung injuries were being caused by vitamin E acetate in November 2019.

More recently in August 2022, Mars Wrigley won a lawsuit against cannabis companies using the logo font and colors to sell illegal edibles. “I have placed significant weight on the issue of harm not only to the Plaintiff but also to members of the public who might accidentally consume the Defendants’ Infringing Product believing it to be a genuine SKITTLES product. The fact that SKITTLES are a confectionary product that are attractive to children reinforces the need to denounce the Defendants’ conduct,” said Judge Patrick Gleeson in his ruling.

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History made: Mississippi’s first medical marijuana dispensaries open for business

The first of 162 state-licensed dispensaries opened on Wednesday afternoon.

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The world’s best cannabis seeds and clones to grow in 2023

Let’s grow a pound.

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Death of a Trimmer (Part 2): A shocking death reveals serious health hazards in the cannabis industry

Lorna McMurrey's death raises questions about asthma and brown lung disease in the cannabis industry. Who's looking out for workers on the factory floor?

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New York Cannabis: State of the State 2023

A lot has happened in New York since the Canna Law Blog’s first New York State of the State. Last year was action-packed for the cannabis industry in New York. With licenses issued and sales starting in 2022, New York got the ball rolling on an actual and legal cannabis industry. We expect 2023 will see even more progress as we push towards New York having a fully functioning cannabis industry. Let’s take a look at the noteworthy developments of 2022 and what we expect to see in 2023.

Three big developments in 2022

1.  New York issued (conditional) adult-use cannabis licenses

A legal adult-use cannabis industry requires licenses to be issued. New York took that significant first step by issuing conditional cultivation, processing and retail dispensary licenses. While we encourage you to read our detailed breakdowns of the three license types, here’s a brief refresher on the specifics.

On April 14, 2022, the Cannabis Control Board (CCB) and Office of Cannabis Management (OCM) issued 52 conditional adult-use cultivation licenses. These licenses were limited to existing licensed (or almost licensed) hemp cultivators. The OCM continued to issue more conditional cultivation licenses after the first batch was announced, beginning the tangible development of the production “tier” of New York’s cannabis industry. On August 17, 2022, New York approved 15 adult-use conditional processor licenses, with the requirements for licensure generally tracking those for the conditional cultivator licenses. More conditional cultivation and processing licenses have been issued since.

On November 21, 2022, the CCB and OCM announced the first Conditional Adult-Use Retail Dispensary (CAURD) licenses that would be issued, with the announced goal of beginning sales by the end of 2022.

2. New York opens its first licensed cannabis dispensary

A cannabis industry doesn’t mean much until consumers can begin purchasing legal cannabis. New York’s momentous step into the legal cannabis sale took place on December 29, 2022, when Housing Works (one of the CAURD licensees) opened its adult-use retail dispensary.

Housing Works’ opening was met with much fanfare and has continued to attract customers and media attention. More legal dispensaries are on the horizon, but 2022 was notable if only for the fact that actual legal sales started in New York!

3.  New York released adult-use cannabis rules and regulations

On the same day the CCB announced the first CAURD license awardees, it also released its full set of adult-use cannabis rules and regulations. We have covered it here; the rules and regulations will be part of our ongoing series.

We cannot overstate the significance of these rules and regulations. They set the overall framework of the licensing process and the industry as a whole, establishing the baseline analysis for anyone who considers applying for an adult-use cannabis license in New York.

Three big things we expect to see in 2023

1.  Shutdown of illegal retail dispensaries

The hottest topic in New York’s cannabis industry (particularly in New York City) is the prevalence of illegal cannabis dispensaries. The New York City Council has identified at least 1,200 illicit dispensaries. Multiple government officials and agencies have discussed clamping down on illegal activities since the MRTA was passed in April of 2021.

The prevalence of easily accessible unlicensed cannabis products is, in our opinion, the single biggest threat to New York’s nascent legal cannabis industry. The MRTA  established a two-tier system that is intended to create a competitive industry with lots of room for small businesses. Illegal dispensaries, which are not subject to taxes, testing or the myriad costly compliance obligations that legal business must pay for, will undercut the legal market if allowed to run rampant. See: California.

The New York City Council has announced plans to significantly increase enforcement to crack down on illegal dispensaries, but it remains to be seen what steps will actually be taken, and if those efforts will actually work.

2.  More dispensaries will open

The first batch of CAURD licenses included 36 licensees. Since the first licensees were announced in November, only Housing Works has opened its doors. That’s going to change soon.

Smacked LLC, the first CAURD licensing owned by an individual, will be opening the second licensed cannabis dispensary in Greenwich Village (Manhattan). More dispensaries are expected to open over the next few months, a development which was likely made possible by the CCB and OCM easing the real estate selection regulations for CAURD licensees.

3.  Non-conditional license applications will open (we hope)

New York’s release of the adult-use rules and regulations was the necessary precursor to New York opening its application portal for all of the MRTA’s enumerated license types (cultivation, processing, distributions, microbusiness, dispensary, etc.). But with no application portal date announced, the public comment period still being open and the possibility of material changes to the current version of the rules and regulations, our hopeful target of spring 2023 for applications being accepted is looking overly optimistic.

The good thing is that the OCM and CCB appear to be taking the public comment process seriously, soliciting as much input from the cannabis industry as possible to have a final set of rules and regulations that creates an adult-use cannabis framework that actually works. The downside to that collaboration is the time it takes to receive and process public input. We hope that public comment will be received an processed efficiently, so that New York is able to continue building out a fully functioning cannabis industry in 2023.

The big picture

We have been and continue to be extremely optimistic about where New York’s cannabis industry is going. Starting licensing and sales was a big deal. Having actual adult-use rules and regulations to review and comment on was a big deal. The industry having an open dialogue with the OCM and CCB about what New York’s cannabis industry should look like is a big deal. Here’s to hoping that New York continues to progress in successfully expanding its cannabis industry in 2023!

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Elon Musk Denies 420 Tweet Was About Weed

During a California court appearance Monday, when questioned about a 420 tweet, Elon Musk suddenly forgot the significance of the number in pot culture. The tech billionaire responded after being cornered by a prosecutor representing Tesla employees for a class action lawsuit alleging he tweeted and misled shareholders about the price of Tesla shares.

The fiasco began several years ago. In 2018, Musk rounded up Tesla shares from $419 to $420, announcing his plan to go private in a tweet. “Am considering taking Tesla private at $420,” Musk tweeted on Aug. 7, 2018. “Funding secured.”—sending officials from The Securities and Exchange Commission (SEC) into a tailspin.

Am considering taking Tesla private at $420. Funding secured.

— Elon Musk (@elonmusk) August 7, 2018

Musk said he tweeted the share price based on what he said was a “firm commitment” from Saudi Arabia’s Public Investment Fund (PIF) to take Tesla private. But about 10 days later, Musk admitted that the Tesla buyout he had envisioned wasn’t going to materialize.

After an investigation, the SEC fined Musk $40 million, forcing the billionaire to step down as chair of Tesla’s board. The SEC said that Musk misled investors. In the SEC’s complaint, Musk was accused of rounding up the share price to $420 from $419 “because he had recently learned about the number’s significance in marijuana culture.” 

Musk caused instantaneous uproar about a month later, sparking a blunt with Joe Rogan on his show “The Joe Rogan Experience” on Sept. 3, 2018, shocking Tesla investors and officials across the board. His troubles didn’t end there. High Times asked if it was “the most expensive blunt of all time” due to the fallout, with NASA- and SpaceX-associated officials reviewing his security clearance.

The Verge reports that Nicholas Porritt is an attorney for a class of Tesla investors suing Musk for millions of dollars that they say resulted from his failure to take Tesla private. 

The courtroom got tense: “You rounded up to 420 because you thought that would be a joke that your girlfriend will enjoy, isn’t that correct?” Porritt asked. “No,” Musk said, adding, “there is some, I think, karma around 420. I should question whether that is good or bad karma at this point.”

Musk said that 420 wasn’t a weed joke, but a roughly 20% premium on the $419 stock price at the time. “420 was not chosen because of a joke,” Musk testified. “It was chosen because there was a 20 percent premium over the stock price.” Musk also claimed that it was a “coincidence.”

The jury will decide if Musk should have to pay out up to billions of dollars in damages to Tesla shareholders for the money they lost due to his tweets.

Judge Edward Chen ruled that the jury should be aware that Musk’s 2018 tweets are false. Jurors will now need to decide whether Musk deceived Tesla shareholders because of his tweets.

Musk said that he was not relying on a commitment for the Saudi PIF when he tweeted “funding secured,” adding that his shares in SpaceX would also help fund the deal to take Tesla private. “Just as I sold stock in Tesla to buy Twitter… I didn’t want to sell Tesla stock, but I did sell Tesla stock,” Musk said. “My SpaceX shares alone would have meant that funding was secured.”

Musk has also been sued by a group of former Twitter employees after a mass firing. Musk recently became the CEO of Twitter after buying the platform for $44 billion in October 2022. Saudi Prince Alwaleed bin Talal bin Abdulaziz is Twitter’s second-largest shareholder after Musk. 

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Nevada Releases Bulletin for Products Affected by Unapproved Pesticide

The Nevada Cannabis Compliance Board (CCB) recently issued a public health and safety bulletin on Jan. 19 regarding the use of an unapproved pesticide. “The CCB was notified that the following cannabis and cannabis products had been treated with an unapproved pesticide, Ethephon, at Clark Natural Medicinal Solutions, LLC,” the CCB explained in its bulletin.

Currently, there are no illnesses reported, according to the bulletin.

The pesticide was applied sometime between July 23, 2021 and Jan. 5, 2023, and the CCB instructs consumers to check the labels of the cannabis they purchased (which includes flower, shake or trim, and pre-rolls). “All cannabis products properly sold by a licensed cannabis sales facility should have a product label on the packaging,” the CCB wrote. “The name of the cultivation facility which grew the cannabis and the harvest date can be found on the label, typically near the top.”

The CCB also put together a list of products that may have been affected by the pesticide, including more than 117 edibles, 41 infused pre-rolls, and more than 200 concentrates, sold at 104 dispensaries.

According to the U.S. Environmental Protection Agency, Ethephon was discovered in 1965 and registered as a pesticide in 1973. “Ethephon is a plant growth regulator used to promote fruit ripening, abscission, flower induction, and other responses,” the EPA states. “Ethephon is registered for use on a number of food, feed and nonfood crops, greenhouse nursery stock, and outdoor residential ornamental plants, but is used primarily on cotton. Formulations include formulation intermediates and soluble concentrates/liquids.”

The EPA also states that Ethephon can potentially cause severe skin and eye irritation “but otherwise is “moderately acutely toxic.”

The CCB also stated that testing facilities do not currently test for Ethephon specifically. “There is no reason to believe the cannabis sales facilities or cannabis testing facilities had any knowledge of the use of this unapproved pesticide; Ethephon is not on the list of pesticides the testing facilities must look for, and their test methods are not set up for detection of Ethephon.”

According to the Nevada Department of Agriculture, updated as of August 2022, there are 86 pesticides that are not legally prohibited to be used on cannabis plants. This varies from minimum risk ingredients such as cinnamon, garlic oil, or zinc metal strips to registered pesticides, such as myclobutanil, where “tolerance is monitored.”

Previously, the CCB has only issued a few safety bulletins such as this one. One bulletin was issued in 2020, which addressed failed microbial testing. Three were issued in 2021, involving more failed microbial testing, incorrect THC potency testing, and products that were unable to be verified as tested. Two bulletins were issued in 2022, pertaining to unverifiable testing and mislabeled products.

In addition to these bulletins, the CCB awarded the final licenses for consumption lounges in Nevada in December 2022, half of which were designated for social equity applicants. Funding for consumption lounges were initially approved in August 2021, with regulations approved by legislators in June 2022, such as safety protocols, staff training, and location restrictions. Now, consumption lounges are “likely to open before Summer 2023,” states the CCB.

One judge issued a ruling last year asking that cannabis be removed from the Schedule 1 category of the Controlled Substances Act. In September 2022, Judge Joe Hardy ordered the Nevada Board of Pharmacy to remove cannabis from its current schedule designation, because cannabis has been recognized in the Nevada constitution as having medical value. “The constitutional right to use marijuana upon the advice of a physician does establish that marijuana has an accepted medical use and treatment in the United States,” said Hardy.

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Smacked Village: New York’s second legal weed dispensary launches today

Smacked Village owner Roland Conner is New York’s first dispensary owner with a cannabis conviction. After his new pop-up store becomes permanent, Conner plans to pass the store down to his son.

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Cannabis worker health and safety resource page

Find information about best marijuana industry practices and protocols to keep everyone safe on the job.

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Ninth Circuit Affirms Dismissal of RICO Claims Relating to Cannabis

Well, it looks like cannabis RICO lawsuits are not going to happen any time soon. As an update to this post I wrote in 2020, the Ninth Circuit has just affirmed the dismissal of two RICO claims brought by a cannabis business owner.

Background of Shulman v. Kaplan

As a quick recap, Plaintiff Francine Shulman took advantage when recreational marijuana was legalized in California and started a cannabis cultivation operation. At some point, she needed financial back and guidance, so she partnered with Defendant Todd Kaplan. They and their various business entities entered into agreements, which Shulman ultimately claims were used to defraud her out of her assets and licenses.

Shulman filed a lawsuit in the Central District of California, a federal court, because two claims involved violations of RICO and two other claims involved violations of the Lanham Act (both federal statutes). RICO, or the Racketeer Influenced and Corrupt Organizations Act of 1970, is a federal statute that provides for a civil cause of action for acts performed as part of an ongoing criminal organization (in addition to criminal penalties). We’ve written a ton of posts about RICO, but suffice it to say, it allows plaintiffs claiming a loss in property value to bring a civil suit for triple damages plus attorney’s fees against any “person” or “enterprise” that has a part in any pattern of “racketeering activity”:

RICO provides that it is “unlawful for any person through a pattern of racketeering activity . . . to acquire or maintain, directly or indirectly, any interest in or control of any enterprise which is engaged in, or the activities of which affect, interstate or foreign commerce” and proscribes conspiracy to do the same. 18 U.S.C. § 1962(b), (d).

Via an early motion to dismiss, Judge Birotte of the Central District dismissed Shulman’s two RICO claims, stating that she cannot sue under RICO because it would provide her a remedy for actions that are unequivocally illegal under federal law.

The Ninth Circuit opinion

In the January 18, 2023 Opinion and Order, the three-judge panel unanimously affirmed Judge Birotte’s ruling. They held Shuman lacked standing to bring RICO claims because in order to establish statutory standing under the statute, a plaintiff must show: “(1) that his alleged harm qualifies as injury to his business or property; and (2) that his harm was by reason of the RICO violation, which requires the plaintiff to establish proximate causation.” However, because Shulman’s “business or property” entails the cultivation, sale, and marketing of cannabis – which is all illegal under federal law – her “harm” wasn’t something that could then be remedied by federal law:

“Looking to RICO as a whole, it is clear that Congress did not intend “business or property” to cover cannabis-related commerce. When Congress enacted RICO, it expressly defined “racketeering activity” to include the “manufacture, importation, receiving, concealment, buying, selling, or otherwise dealing in” cannabis. 18 U.S.C. § 1961(1)(D); 21 U.S.C. §§ 802, 812. Because RICO’s definition of racketeering activity necessarily encompasses dealing in cannabis, it would be inconsistent to allow a business that is actively engaged in cultivation of and commerce in cannabis to recover damages under RICO for injury to that business.”

The Panel even went so far to compare cannabis to heroin because of their federally illegal status:

“Indeed, were we to substitute a drug like heroin for cannabis for the purposes of our analysis, the conclusion seems obvious: Congress could not have intended to allow a heroin dealer to recover RICO damages from someone who, by mail and wire fraud, stole a shipment of heroin. Otherwise, RICO would serve to protect the same variety of conduct it was intended to combat. For these reasons, we hold that Appellants lack a statutory right to bring a claim under RICO.”

In effect, the Ninth Circuit is affirming something akin to an illegality defense on steroids: because the statute specifically includes cannabis-related commerce within its racketeering definition, the Courts’ hands are tied and cannot help. While this has been the general trend for all RICO claims in the space, this newest Opinion makes clear things are not going to change any time soon.

For other recent articles about claims in this space, see:

• Cannabis RICO Lawsuits are Failing: Oregon and Colorado Updates
• When the Hunted Becomes the Hunter: Cannabis Companies Turn to RICO

And for a deeper dive, see:

• Much Ado about RICO
• Much Ado About RICO and Cannabis, Part 2
• Much Ado About RICO and Cannabis, Part 3
• Much Ado About RICO and Cannabis, Part 4
• Much Ado About Rico and Cannabis, Part 5: Multi-State Update
• The Neighborhood “Gangbusters”: Avoiding RICO Cannabis Lawsuits

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Guyana Authorities Seize Weed Shipment from the U.S.

Customs officials in Guyana last week intercepted and seized a box of cannabis that had been shipped from the United States. 

The Customs Anti Narcotic Unit (CANU), the top drug enforcement agency in the South American country, said in an announcement that its officers “were contacted on January 20, 2023, after packages of suspected cannabis were discovered in a box shipped from the United States at the Muneshwar shipping limited.”

“CANU officers arrived on the scene and conducted additional searches before taking possession of the box,” the agency said in the announcement, which was posted on Facebook. “The box was then transported to CANU headquarters in the presence of the employee of the shipping company, who made the discovery. The suspected cannabis tested positive for cannabis and amounted to 1.920 kgs.”

The Customs Anti Narcotic Unit said that investigations into the package are ongoing.

Despite marijuana’s ubiquity in Guyana’s warm climate, the country’s government takes a hardline against weed, strictly prohibiting its cultivation, sale and possession. 

Courtesy of CANU

According to the Guyana Standard, the Customs Anti Narcotic Unit “conducted several raids and was able to clear 3,403.68 kilogrammes of narcotics amounting to a street value of $1.1 billion off the streets” last year. 

“This represents a 68.26 percent increase in comparison to 2,022.88 kilogrammes of narcotics amounting to $634 million in 2021,” the outlet reported. “There were 24 cases of cocaine, 80 cases of cannabis, four cases of ecstasy, and two cases of methamphetamine in 2022.”

On the same day as the seizure of the cannabis package in Muneshwar, the Customs Anti Narcotic Unit announced that a woman had been “sentenced to four years in prison and fined $53.1 million for cannabis possession by Magistrate Leron Daly after admitting to having 59 kgs of cannabis in her possession for the purpose of trafficking.”

According to the Guyana Standard, the country’s government “has been investing millions of dollars in the security sector to provide a safe and secure environment for Guyanese,” including “purchasing vehicles for the Guyana Police Force (GPF) while training police officers and allocating half a million dollars to the Customs Anti Narcotics Unit (CANU) to advance its work.”

CANU was “established through a Cabinet decision in 1994 and was implemented in August 1995,” according to the law enforcement agency’s official website.

“The Narcotic Drugs and Psychotropic Substances (Control) Act, 1988 was amended in 1999 to facilitate the legal operation of the Unit and to give it the same authority to enforce it, as the Guyana Police Force,” the site explains. “In April 2001, Guyana and the United States signed a Shiprider Agreement to suppress illicit traffic by sea and air. The agreement seeks to reduce the ability of illicit narcotics traffickers to elude maritime law enforcement agencies within and outside the territorial waters of Guyana, as well as to strengthen Guyana’s maritime law enforcement capabilities. On July 23, 2003, the National Assembly passed the Maritime Drug Trafficking (Suppression) Bill 2003. The Bill … provide[d] the legal framework for the implementation of provisions of international, hemispheric, regional and bilateral agreements, of which Guyana is a part. The Agency is also linked to INTERPOL, one of the world’s biggest coordinators of drug interdiction agencies. The Narcotics Unit also plays an active role in the World Customs Organisation. The Government of Guyana and the Government of Colombia signed an agreement that allowed Guyanese law enforcement officers to benefit from anti-narcotics training.”

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Thailand’s first Cookies cannabis dispensary opens to huge crowds [Photo gallery]

At the Cookies grand opening in Bangkok, Thailand over the weekend, Leafly hung out with locals, tourists, and operators to see how the country became a leader in Asia’s cannabis revolution.

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Will AI Replace Your Cannabis Lawyer? (I Asked ChatGPT)

ChatGPT is all the rage. The GPT stands for “Generative Pre-trained Transformer”.  Translation: this is a next level, nearly omnipotent chatbot that’s incredibly articulate and conversant. Per Wikipedia:

“while the core function of a chatbot is to mimic a human conversationalist, ChatGPT is versatile, including the ability to write and debug computer programs; to compose music, teleplays, fairy tales, and student essays; to answer test questions (sometimes, depending on the test, at a level above the average human test-taker); to write poetry and song lyrics; to emulate a Linux system; to simulate an entire chat room; to play games like tic-tac-toe; and to simulate an ATM”.

Of course, this has some lawyers wondering if ChatGPT will somehow replace essential human services in the legal industry. For example, will ChatGPT be able to write a cogent, well-researched legal brief? Sounds like the answer is no, but I’m still curious. So, I decided to explore ChatGPT and cannabis. Needless to say, I’m not really all that worried that ChatGPT is going to replace cannabis lawyers. I do think it’s an okay resource for very general information, but the legal fate of your cannabis business probably shouldn’t hinge on a more sophisticated, responsive form of google.

Anyway, here are snippets of my ChatGPT and cannabis convo:

What is a cannabis lawyer?

In response to this one, ChatGPT tells us:

A cannabis lawyer is a legal professional who specializes in the laws and regulations surrounding the cultivation, sale, and use of cannabis. They may advise clients on compliance with state and federal laws, assist with the licensing and permitting process for cannabis businesses, and represent clients in legal disputes related to the cannabis industry. They may also provide guidance on intellectual property and contract law issues related to cannabis.

The interesting thing about this response is that it doesn’t include criminal representation in the list. If ChatGPT happened ten years ago, I think criminal representation would have made the list. ChatGPT doesn’t live scroll the internet for information when responding to questions. Instead, it uses its training data (in addition to human feedback) to respond to inquiries, and that training data comes from the web. It’s just curious as a result that there’s no mention of criminal defense anymore in ChatGPT’s definition of a cannabis lawyer. 

Explain the ethical rules for a cannabis lawyer

Ethical rules for cannabis lawyers will vary depending on the jurisdiction in which they practice. However, some general principles that may apply include: Compliance with all applicable laws and regulations: Cannabis lawyers must ensure that their clients are operating in compliance with all state and federal laws and regulations related to cannabis; Confidentiality: Cannabis lawyers have a duty to maintain the confidentiality of their clients’ information, as well as to protect their clients’ rights to privacy; Avoiding conflicts of interest: Cannabis lawyers must be careful to avoid conflicts of interest in representing multiple clients in the same industry or with competing business interests; Representation of clients with integrity: Cannabis lawyers must represent their clients with integrity, and not engage in any conduct that would reflect negatively on the legal profession; Professionalism: Cannabis lawyers must conduct themselves in a professional manner and avoid any conduct that could bring disrepute to the legal profession; Compliance with Local Bar rules and regulations.

Although this is a general answer, I was impressed with it in regards to the conflict of interest response. I don’t think clients even consider whether or not their lawyers are representing their direct competition when it comes to things like competitive licensing processes. Note, however, that the overall response doesn’t include the finer details of certain ethical issues in the industry like lawyers taking a financial interest in a client’s cannabis business.

Draft me a cannabis contract

I asked ChatGPT to draft a cannabis fee slotting agreement for me. This was the response:

I’m sorry, but as a language model AI, I’m not able to provide you with a legal contract. However, I can provide you with an overview of what a cannabis contract for fee slotting might include. Description of the agreement: The contract should clearly describe the agreement between the parties, including the terms of the fee slotting arrangement; Payment terms: The contract should specify the payment terms for the fee slotting arrangement, including any deposit, payment schedule, and method of payment; Duration: The contract should specify the duration of the fee slotting agreement, and any conditions under which the agreement may be terminated; Compliance with laws and regulations: The contract should state that the parties involved will comply with all applicable state and federal laws and regulations related to the cannabis industry; Dispute resolution: The contract should include a dispute resolution clause that outlines the process for resolving disputes that may arise between the parties, such as mediation or arbitration; Confidentiality: The contract should include a clause which ensures that the parties involved keep the terms of the agreement and all related information confidential; Jurisdiction and governing law: The contract should specify the jurisdiction in which the contract is governed, as well as the governing law that will be used to interpret the contract; Signatures: The contract should be signed by all parties involved, indicating their agreement to the terms outlined in the contract.

Sorry, folks. You won’t be getting any contracts from ChatGPT. You’ll get (again) a general description of what should be in the agreement, but it won’t be tailored to your actual situation. Fee slotting agreements are popular in cannabis and they’re incredibly specific (and certain states, like California, may have wonky laws around restraint of trade that may impact them altogether). A general description of what should be in a standard contract really isn’t going to advance the ball for something like that.

You’re still going to need a living, breathing cannabis lawyer

In the end I think ChatGPT and cannabis are great bedfellows when it comes to generalized legal information. ChatGPT is not a replacement for a competent attorney with experience in the area. We know things are dicey out there right now economically and cannabis operators are trying to save on their legal spend. However, ripping cannabis agreements from Google or getting “advice” from ChatGPT won’t be to your advantage anytime soon. Even ChatGPT admits:

“consulting with a cannabis attorney at an early stage can help you avoid legal issues down the road and increase your chances of success in the cannabis industry. It is important to note that laws and regulations surrounding cannabis are constantly changing, so it’s important to work with a lawyer who has up-to-date knowledge.”

Good advice.

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