A Brave New World

When Oregon voters passed Proposition 109 in 2020, they cleared a path for greater access to the therapeutic use of psilocybin mushrooms and products that contain their active compounds. The ballot measure, which was approved with more than 55% of the vote, authorized the Oregon Health Authority (OHA) to create a program to permit licensed service providers to produce and administer psilocybin-producing mushroom products to adults 21 years of age or older.

A model for progressive drug policy reform, Prop. 109 also laid the groundwork for a new industry in Oregon. The OHA’s Psilocybin Services Section is charged with drafting rules to license and regulate the manufacturing, transportation, delivery, sale, and purchase of psilocybin products as well as the provision of psilocybin services, with a mandate to have the program up and running in 2023. The agency is already accepting applications for psilocybin business licenses and savvy entrepreneurs are launching new enterprises to service a rising industry.

A New Business is Born

George Sellhorn, founder and principal scientist at Flourish Labs in Portland, is one of the business owners preparing for the launch of legal psilocybin in Oregon. He has had a personal relationship with psychedelics, including psilocybin mushrooms, since he was a teenager and acknowledges that psychedelics have had a “huge impact” on his life. He is also an avid cannabis enthusiast and, with tips and encouragement from High Times, has been growing his own plants since 1993. His interest in and passion for cannabis inspired his academic pursuits, with Sellhorn earning a Ph.D. in plant biochemistry from the University of Washington in 2006.

At that time, the legal cannabis industry in the U.S. was in its infancy, and positions in professional fields were few and far between. Sellhorn turned to biotechnology to begin his career, with stints working on cancer therapeutics and an HIV vaccine. Before long, however, friends with businesses in the emerging industry encouraged him to open a cannabis testing lab. Intent on seeing where his chosen path would take, he decided against going into business for himself, although he did dabble in the industry a bit and helped a couple of friends get labs set up. It seemed right for Sellhorn at the time, but it didn’t take long for him to wish he had decided differently.

“A few years later, I kind of was kicking myself saying, ‘I probably should have started a lab, and I’d probably be a lot happier than I am right now,’” he tells me in a telephone interview.

After the passage of Prop. 109, things came full circle. Once again, friends in a soon-to-be legal industry encouraged him to open a lab. The ballot measure includes provisions directing the OHA’s regulations for testing psilocybin products for contamination. Additionally, therapists would want to know the dosage of active compounds they were administering, leading to a need for potency data throughout the supply chain.

Sellhorn remembers thinking, “I’ve been down this road before,” and decided he wouldn’t leave himself open to later regrets this time around. He began ordering the lab equipment and supplies he would need to launch the operation in September 2021, and by the beginning of 2022, Flourish Labs was ready to start taking in samples and running tests.

Sellhorn says that testing mushrooms is quite similar to lab analysis of cannabis, but with one key difference. Like many cannabis labs, Sellhorn uses high-performance liquid chromatography incorporated with ultra-violet spectroscopy (HPLC-UV) to separate the molecules of a given sample and determine its makeup. However, unlike cannabinoids, which are fat-soluble (hydrophobic), the alkaloids in mushrooms are water-soluble (hydrophilic), necessitating a change in the approach to make it work. “So, same methods as cannabis, but just the opposite chemistry,” Sellhorn summarizes.

Lab Testing for Psilocybin, and More

Much of the time Sellhorn spends in testing involves determining the amount of psychoactive alkaloids, or potency, a particular sample contains. More than 50 species of mushrooms produce psilocybin, which is expressed at different levels determined by factors including genetics and cultivation practices.

“The most potent mushroom that I’ve seen from different people is an Albino Penis Envy or an APE,” says Sellhorn. “Eve tested anywhere from 0.1% alkaloids, up to 2.3% was the highest one that I’ve tested so far. So, there’s a pretty big range. The average, I’d say, is about 0.5% to 0.7% alkaloids [by dry weight].”

Initially, Sellhorn’s business plan primarily involved analyzing mushrooms that contain psilocybin and related alkaloids, including psilocin, psilocybin, norpsilocin, baeocystin, and norbaeocystin. Since opening Flourish Labs, he has also developed testing protocols for other products made with psilocybin mushrooms that are likely to be part of Oregon’s upcoming regulated market.

“I can also do fruiting bodies and gummies, chocolates, and extracts, whether it be liquid extract or dry extract” he explains. “So, I have a protocol for all of the possible products that could be made, that I’m aware of, as of now.”

High Times Magazine, February 2023

Dosage is Key

Sellhorn notes that the renewed interest in the reported health and wellness benefits of psilocybin has fostered a new culture of microdosing, which Sellhorn has been practicing for more than four years. To microdose, only a tiny fraction of a psychedelic dose of psilocybin is taken, perhaps 0.1 to 0.2 milligrams, Sellhorn suggests. With mushrooms of average potency (rounded up to 1% total alkaloids), that translates to about a tenth to two-tenths of a gram of mushroom biomass. “That’s like a really nice microdose, and you can adjust it based on body weight,” he says. “A microdose should be enough to lift your mood but not feel any of the psychedelic effects like you’re about to trip.”

At the other end of the spectrum is macrodosing, which involves taking enough psilocybin to produce a strong psychedelic effect, which can either be a heck of a fun trip or a space for life-changing spiritual or psychological breakthroughs, depending on the intention with which the drug is taken. To macrodose, Sellhorn says a dosage of 30 milligrams to 50 milligrams of psilocybin (approximately 5 grams of mushroom biomass) should be about right for an intense trip. And within the extremes of micro and macrodosing, “there’s doses in between there for whatever you’re looking for.”

In addition to potency, Sellhorn notes that the form of psilocybin taken can also influence the effects of the drug. While eating dried mushrooms is the classic method of consumption, extracted psilocybin and products made from it can modify the drug’s effects.

“It’s abundantly clear to me now that the mushroom biomass itself acts like a time-release capsule. So, if you take a mushroom that has, say, five milligrams of psilocybin in it, and you eat that, you’ll get a certain effect,” he explains. “And it’ll take a certain amount of time to hit you. But if you take five milligrams in a gummy or a chocolate, it hits you way faster, it’s much more intense, and it gets over more quickly.”

Sellhorn’s work in the lab has given him an opportunity to increase his knowledge about other psilocybin best practices, as well. He notes that proper storage is very effective at preserving the potency of psilocybin mushrooms. When a client was looking for data on potency degradation, an in-house study determined that mushrooms stored in a vacuum-sealed bag and kept in dark conditions at 60° Fahrenheit retained 98% of their potency after four months.

An Expanding Scientific Field

Although he sees a strong market for analyzing psilocybin-containing mushrooms coming to Oregon, Sellhorn realized that demand for lab testing may be limited until the industry is more established and generating revenue. Although the state’s regulations will likely eventually include requirements for testing for microbial contamination or the presence of heavy metals in addition to potency, such testing is not yet in high demand. So, to supplement his business plan, Flourish Labs has also begun lab testing of so-called functional mushrooms including cordyceps, reishi, and amanita muscaria (famous in folklore and pop culture) for compounds that could have health and wellness benefits. Additional species to be tested by the lab in the coming months include lion’s mane, chaga, maitake, tremella, and turkey tail.

When regulated production and administration of psilocybin for therapeutic purposes begins in Oregon later this year, it will launch a new industry in the state and become a milestone in the continued evolution of drug policy reform. Leading the way will be a new generation of innovators and entrepreneurs, including Sellhorn and Flourish Labs.

This article was originally published in the February 2023 issue of High Times Magazine.

The post A Brave New World appeared first on High Times.

from The Latest Marijuana News Today | HighTimes Magazine https://ift.tt/bAjYnOK
via IFTTT

Oregon Cannabis: Employment Law Issues for Struggling Businesses

We all know the Oregon cannabis industry is struggling. We write often about the causes on a macro level, possible solutions, and what we see as business litigators. We haven’t written much about one of the basic areas of employment law that applies to Oregon marijuana businesses: workers rights to wages and employer responsibilities. As marijuana businesses shutter, employees and employers should pay careful attention to Oregon’s wage laws. This post addresses basic things marijuana employees and employers ought to know about paying wages when employment ends.

No formal contract is required to create an employment relationship

There is no requirement under Oregon law for a formal contract to establish an employment relationship. As long as the ordinary elements of contract formation are present an employment relationship exists. Usually this means that the person for whom the service is performed (employer) agrees to have another perform the service (employee) for a certain remuneration (wages). And where the putative employer has a right of control over the services provided by the putative employee.  Typically this boils down to compensation and right-of-control.

When these elements are present an employer’s promises of wages and benefits are binding. On the flip side, the general rule is that employment is “at-will”. This means that absent some other arrangement, either the employer or employee may terminate the employment contract at any time, for any reason or no reason. This is limited, however, in that an employer cannot terminate the employment contract for certain protected classes (race, religion, national origin, etc.) as established by federal and state law. Oregon also protects employees from discrimination on the basis of sexual orientation.

Cannabis employees have a right to timely payment upon the termination of employment

Federal and Oregon law provide minimum wage requirements. Employers must pay employees on a regular payday schedule and may not withhold or delay paychecks as a form of discipline.

When an employee resigns, i.e. terminates and at-will employment relationship, all wages earned up through the date of termination are due five days after the employee quits (excluding Saturdays, Sundays, and holidays), or at the next regularly scheduled payday, whichever occurs first.

There are strict requirements that apply to the payment of final wages when an employee is are fired, laid off, or quit.

• If an employee quits with less than 48 hours’ notice (not including weekends and holidays) their paycheck and any wages owed are due within five business days or on the next regular payday, whichever comes first.
• If an employee quit with at least 48 hours notice, their final check is due on your last day of employment, unless that day is a weekend or a holiday. In that case, their check is due on the next business day.
• If an employee is let go or fired, their final paycheck is due by the end of the next business day.
• If an employer and worker mutually agree to terminate the relationship, the check is due by the end of the following business day.

See here for source, BOLI, which is an excellent resource.

There are consequences for cannabis employers if an employee’s final wages are not timely paid

An employment contract may be enforced like any other contract. But employers may be subject to penalties in some situations.

When an employer willfully fails to pay all wages due an employee upon termination, as a penalty the employee’s wages continue from the due date at the same hourly rate for eight hours per day until action is commenced or wages are paid, up to a maximum of 30 calendar days. This civil penalty may not exceed the amount of the unpaid wages unless the employer fails to pay within 12 days after receiving written notice of the failure to pay.

The Oregon Supreme Court has defined “willfully” as nothing more than this: That the person knows what he is doing, intends to do what he is doing, and is a free agent. It does not necessarily imply blame, or any malice or wrongdoing toward the other person.

Employers also ought to be aware of ORS 652.200, which allows employees to seek attorneys’ fees in certain circumstances when the final wages are not timely paid. These costs can quickly approach or exceed the amount of unpaid wages. Courts are authorized to award a “reasonable sum” unless the employee has “willfully” violated the employment contract.

Whether you are an employee of a marijuana business or an employer, keep these basics in mind.

The post Oregon Cannabis: Employment Law Issues for Struggling Businesses appeared first on Harris Bricken Sliwoski LLP.

from Canna Law Blog™ https://ift.tt/2I6CpU9
via IFTTT

GOP Senators Kill Veterans Cannabis Research Bill

Republicans in the U.S. Senate voted this week to block a bill that would have directed the Department of Veterans Affairs (VA) to conduct research into cannabis as a treatment for chronic pain and post-traumatic stress disorder (PTSD). In a procedural vote on Wednesday, the Senate declined to advance the Veterans Affairs Medicinal Cannabis Research Bill (S. 326) with a vote of 57-42, falling short of the 60 votes needed to continue debate on the measure.

The bipartisan legislation was introduced by Montana Democrat Senator Jon Tester earlier this year with co-sponsorship by Senator Dan Sullivan, a Republican from Alaska. In February, the bill was approved by the Senate Veterans Affairs Committee with a vote during a closed-door session. 

Under the bill, the VA would be required to conduct a large-scale observational study that evaluates the safety and efficacy of cannabis as a treatment for PTSD and chronic pain. An identical bill (H.R. 1003) sponsored by California Democratic Representative Lou Correa is also pending in the House of Representatives, with Republican Representative Jack Bergman signed on as a co-sponsor.

The clinical study would explore the positive and negative health outcomes of cannabis use by military veterans, including whether using marijuana reduces the use of alcohol or opiates. The study would also investigate other aspects of medicinal cannabis use, including pain intensity, sleep quality, agitation, and overall quality of life. Once the study is complete, the legislation requires the VA to report back to Congress on the results and the feasibility of conducting clinical trials.

Vote Blocks New Research For Veterans’ Health

When he introduced the bill earlier this year, Tester, the chair of the Senate Veterans Affairs Committee, said in a statement that the legislation would give military veterans new choices to manage their health care.

“Our nation’s veterans deserve options when it comes to treating the wounds of war, which is why VA needs to have a better understanding of how medicinal cannabis plays a role in their healing,” he said. “Our bipartisan bill ensures VA is listening to the growing number of veterans who find critical relief from alternative treatments like medicinal cannabis, while working to empower veterans in making safe and informed decisions about their health.”

A total of 41 GOP senators voted to block the bipartisan bill, with Senate Majority Leader Chuck Schumer then changing his vote to “no” in order to keep the bill alive under the Senate’s rules. 

In a social media post, Tester wrote that “41 Senate Republicans just chose partisan political games over providing our nation’s veterans their hard-earned benefits and care. 41 Senate Republicans are telling the men and women who have defended our country that their government doesn’t value their sacrifices.”

“Not only are they blocking VA from *researching* medicinal cannabis as an alternative treatment for veterans dealing with chronic pain or PTSD—they’re blocking improvements to veterans homeownership efforts, community-based support, outreach, and more,” he continued. “It’s totally unacceptable.”

In a floor speech before the vote, Senate Veterans’ Affairs Committee ranking member Senator Jerry Moran of Kansas, one of the eight Republican senators who voted to advance the cannabis bill, said the measure “is an effort to make certain that veterans are not doing something that is harmful to them and to help them make an informed decision,” according to a report from the Military Times.

But the senators backing the bill on Wednesday were not enough to keep the measure moving forward. GOP Senator John Cornyn of Texas said that the decision to block the cannabis research bill came after “spirited debate” during a Senate Republican policy lunch before the vote.

Cornyn told CNN that there were concerns among GOP senators about the methodology of the clinical trial authorized by the bill because “this retrospective study would be done strictly through volunteers who would come forward and talk about their experience with marijuana and PTSD,” and “it depends on people to self-select and we don’t know how that would skew the results.”

The senator also said that Republicans were not given “assurances” that they would be given the opportunity to offer amendments to the legislation, adding that there were concerns about whether the bill would be taken up by the House of Representatives and the chamber’s GOP leadership.

Political concerns may have also been in play, with critics of advancing the bill suggesting that the potential success of the legislation could be seen as a win for Tester, an incumbent Democratic senator up for re-election in a conservative state.

Cornyn indicated that negotiation on the bill would continue and that the legislation could be revived in the Senate. He explained that Wednesday’s vote was “hitting the pause button” on the measure. Schumer described the vote to stop the bill as “regrettable,” adding that he hopes efforts to resurrect the legislation in the Senate at a later date are successful.

Jeffrey M. Zucker, president of Denver-based cannabis-focused business strategy firm Green Lion Partners and vice chair of the Marijuana Policy Project board of directors, expressed disappointment at the decision to delay action on the Veterans Affairs Medicinal Cannabis Research Bill.

“I’m deeply saddened to hear that the Senate Republicans have blocked a procedural vote to advance this bill. It’s frustrating to see how politics can prevent progress on an issue that could make a huge difference in the lives of veterans and should really have no controversy surrounding it,” Zucker wrote in an email to High Times. “However, I’m still hopeful that lawmakers can come together to pass a bill that allows research into medical cannabis and eventually allows veterans to enjoy the benefits of medical cannabis. Our veterans deserve the best care possible, and medical cannabis could provide much-needed relief to those suffering from chronic pain, PTSD, and other conditions. It’s time for our leaders to put aside their differences and do what’s right for our veterans.”

The post GOP Senators Kill Veterans Cannabis Research Bill appeared first on High Times.

from The Latest Marijuana News Today | HighTimes Magazine https://ift.tt/8UXNdpl
via IFTTT

California Cannabis Department Grants Nearly $20 Million to Academic Institutions

The California Department of Cannabis Control (DCC) granted $19,942,918 to 16 academic institutions with plans to research cannabis on April 26. The grants will be dedicated to research initiatives exploring the effectiveness of cannabis on “mental health of young people, novel cannabinoids like Delta-8 and Delta-10 THC, and a first-of-its kind study of California’s legacy cannabis genetics, intended to preserve the history, value, and diversity of the communities that steward them,” a press release stated.

According to DCC chief deputy director Rasha Salama, the goal is to have these particular initiatives lead the way in cannabis studies. “It is the Department’s aspiration that these studies will advance the body of scientific research, further our understanding of cannabis, and aid to the continued development and refinement of the legal framework,” said Salama. “These studies will provide valuable insights on topics of interest to California’s consumers, businesses, and policy makers and the Department looks forward to sharing them once they are completed.”

Grants were awarded to institutions in six categories, including cannabis potency, medicinal use of cannabis, health of the cannabis industry, monopolies and unfair competition, California legacy genetics and genetic sequencing, and “other” topics. A total of 98 proposals were considered, and 16 were chosen from that pool based on “strong scientific methodology, their ability to provide useful information for policymaking, their advancement of public understanding of cannabis, and their potential to generate foundational research that will support exponential future knowledge.”

The institution that received the highest grant amount of funds was Cal Poly Humboldt with $2,699,178, which will be sued to tackle the topic of “Legacy Cannabis Genetics: People and Their Plants, a Community-Driven Study.” 

According to a press release, a nonprofit organization called Origins Council and the Cannabis Equity Policy Council is partnering with the Cal Poly Humboldt to work on the initiative. “This research seeks to empower and protect California’s legacy cultivation communities who have overcome great adversity to innovate and steward one of the most important collections of cannabis genetic resources in the world,” stated Origins Council executive director Genine Coleman.

Additionally, the University of California, Irvine and University of California, Los Angeles (UCLA) received $2 million each, and both will be conducting cannabis potency studies.

UCLA-based studies secured six grants, and University of California, Berkeley (UCB) received grants for three. Other institutions included University of California, San Francisco, University of California, Davis, Cal Poly San Luis Obispo, and Cal Poly Humboldt.

One particular collaboration between UC Irvine and UCLA will conduct the “first double-blind, placebo-controlled, federally compliant, drug-administration study evaluating the intoxicating effects of inhaled cannabis plant compared to inhaled concentrates. It is expected [to] establish a clinically significant threshold to define high and low THC concentrations.”

In February, the DCC also announced a new grant program offering $20 million to help support and expand the state’s cannabis industry. “Expanding access to California’s retail cannabis market is an important step towards protecting consumer safety and supporting a balanced market,” said DCC director Nicole Elliott. “The retail access grant program ultimately seeks to encourage legal retail operations in areas where existing consumers do not have convenient access to regulated cannabis.” The grant application window ends on April 28, and $10 million of the grant funds will be awarded by June 20. After that, an additional $10 million will be “available to previous awardees as they issue licenses.”

The DCC released a statement in early March regarding the enforcement statistics from the past two years. According to the agency’s report, the DCC led 61 search warrant operations in 2021, but conducted 155 in 2022. In 2021, the DCC seized more than 41,726 pounds of cannabis (approximately $77,772,936 in value), but that number increased to 144,254 pounds in 2022 (estimated to be more than $243,017,836 in value).

The post California Cannabis Department Grants Nearly $20 Million to Academic Institutions appeared first on High Times.

from The Latest Marijuana News Today | HighTimes Magazine https://ift.tt/hlVv79x
via IFTTT

Top autoflower seeds to grow for spring and summer 2023

Fast, easy to grow Runtz, OG Kush, and some weird stuff, too.

The post Top autoflower seeds to grow for spring and summer 2023 appeared first on Leafly.

from Leafly https://ift.tt/J9TKaUL
via IFTTT

New York Proposes Tough Legislation for Unlicensed Cannabis Retailers

New York State budget talks are hung up on how to curb an onslaught of unlicensed cannabis retailers. It is self-evident that these illicit weed joints are hurting the ability for the cannabis industry to begin and grow. However, until there are more legal shops that compete with the illegal stores, it seems the State cannot shut them down or drive business into the regulated market. Lawsuits such as the one we recently covered by New York City against unlicensed operators and their landlords don’t seem to have not deterred most operators.

Huge fines proposed for unlicensed cannabis retailers

While the State issues additional condition adult use retail dispensary licenses, Gov. Kathy Hochul proposed legislation weeks ago to empower state agencies to increase fines on illegal sites from a paltry $250 to as much as $10,000 per day. State agencies would also be allowed to shutter the illegal cannabis stores for good. Mayor Adams previously complained that $250 was paltry and a mere slap on the wrist.

State senators showed they are devoting more legislative energy to the topic by commemorating the so-called “4/20” pot holiday April 20 with the establishment of a new subcommittee focused on cannabis issues.

Law enforcement authority expansion proposed for unlicensed cannabis retailers

The new legislation seeks to revise the state tax law and the cannabis law allowing the Office of Cannabis Management (“OCM”) and the Department of Taxation and Finance to crack down on illicit weed sellers while giving local law enforcement authorities more enforcement powers to go after unlicensed storefront dispensaries.

Under the governor’s new plan, tax officials would be given peace officer status to go after illicit weed dealers, and the tax department would be able to impose harsher penalties for illegal sales.

Breaking the law could lead to fines of $200,000 for selling illicit cannabis plants or products such as THC-infused gummy bears and other edibles and allow the OCM to fine businesses $10,000 per day for engaging in cannabis sales without a license.

The post New York Proposes Tough Legislation for Unlicensed Cannabis Retailers appeared first on Harris Bricken Sliwoski LLP.

from Canna Law Blog™ https://ift.tt/qeaFuy6
via IFTTT

Jamaica Officials Advocate for Support of Small Scale Cannabis Cultivation

The Jamaican Ministry of Industry, Investment and Commerce recently spoke out in support of small-scale cannabis farmers. According to the Jamaica Observer, State Minister Dr. Norman Dunn, the Alternative Development Programme (ADP) is still viewed as one of the best ways to help smaller cannabis growers enter the legal industry.

“The ADP is a community-centered approach in which participating communities will be allowed to cultivate up to 10 acres of land [and] will be required to sell all of their outputs from the program to a licensed downstream buyer or authorized permit holders of the Cannabis Licensing Authority (CLA),” Dunn said at a 4/20 event held at Island Village in Ocho Rios, St. Ann.

Alternatively, a Cultivator’s Transitional Special Permit could also help remove barriers of entry for cultivators. Dunn described the permit as “less rigid,” and would give cultivators an opportunity to temporarily grow legally while also raising money to send an official license application to the CLA. Through the “mother farm” concept, small-scale cultivators would be allowed to partner with an already licensed cultivator to grow cannabis and then sell it to the licensed party.

“Recently, the ministry hosted a meeting of several stakeholders within the licensed regime to confer on matters relating to the industry and chart a sustainable development of this important industry,” Dunn added. “We in the Ministry of Industry, Investment and Commerce continue to meet and engage stakeholders across Jamaica from within the various communities, in academia, medical research, businesses and across government… that will advance Jamaica’s distinctive cannabis industry.”

Other government representatives such as Olivia Grange, the Minister of Culture, Gender, Entertainment and Sport, expressed the need for regulation and modernizing the cannabis industry. With the approach that Dunn mentioned, Grange believes that they can help remove the cannabis stigma, allowing the herb to “become the foundation of a new Jamaican industry with potential to make a major contribution to the national budget.”

According to Ministry of Industry, Investment and Commerce, there are 128 small cultivators that would be able to benefit from the mother farm concept. In March, Jamaican Sen. Aubyn Hill explained that the goal is to allow the program to begin this month in April. “When I look across Jamaica … you have people with one acre, two acres, three acres, but they don’t have the working capital. The mother farm concept allows for a big investor,” the minister explained. “So, we’re finding ways to make sure we alleviate some of the problems. We’re looking at very real ways to develop medical cannabis growth in Jamaica.”

The development of the ADP dates back to 2017. In an interview with the Jamaica Observer, CLA chairperson Hyacinth Lightbourne expressed the necessity of supporting small farmers. “If traditional farmers are excluded, then one of the fundamental reasons for developing this industry would have failed, as the program is intended to provide a legal alternative for those who traditionally cultivate illicit crops,” Lightbourne said.

While Jamaican officials are working to help small cultivators, recent news reports from March show that the country recently granted a license to a company that plans to import cannabis from Canada. The decision rallied concern from officials such as CLA rear admiral Hardley Lewin regarding the nature of the new license. “I brought this to the attention of our members and the industry,” Lewin said. “And also to the CLA; who confirmed it. I made a lot of noise about it because I am very angry that a country that does not allow Jamaican imports or exports from Jamaica into their market could be granted permission to export to Jamaica.”

In response, Minister Hill shared that the imported Canadian cannabis is not available in Jamaica. “It’s a Jamaican company…They have to follow the rules which are in legislation…The ganja strain being imported is not available in Jamaica. The permit is granted depending on the license you have. Some people have license to grow, others to test and some to retail…” Hill stated, according to the Jamaica-Gleaner.

The post Jamaica Officials Advocate for Support of Small Scale Cannabis Cultivation appeared first on High Times.

from The Latest Marijuana News Today | HighTimes Magazine https://ift.tt/4hIfJz2
via IFTTT

Zkittlez strain grower Royal Budline wins $40,000 on 4/20

Read Strain News Weekly #3.

The post Zkittlez strain grower Royal Budline wins $40,000 on 4/20 appeared first on Leafly.

from Leafly https://ift.tt/4wfWOzE
via IFTTT

Webinar Takeaways: IRS Cannabis Taxes and Enforcement

On April 13th, I moderated a webinar about cannabis taxes called “IRS Enforcement of Cannabis Operators is Here – What Do We Do Now?“. Cannabis taxes should scare anyone in the industry, but federal incomes taxes under I.R.C. 280E probably take the cake when it comes to general anxiety. Our webinar featured Ani Gaylan and Jonathan Kalinski who are both tax attorneys from Los Angeles, representing clients in the cannabis industry facing 280E audits and controversy cases. Jonathan even handles the criminal aspect when the IRS comes calling. If you didn’t attend the webinar, below are the key takeaways about cannabis taxes and the IRS.

It’s not a matter of “if” but “when” for audits on cannabis taxes

Ani and Jonathan both agree that the IRS is ramping up its pursuit of audits against cannabis businesses. In case you forgot, I.R.C. 280E dictates that, if you traffic in a schedule I or II controlled substance (and cannabis is in schedule I), you cannot take normal business deductions or credits. You only get Costs of Goods Sold (“COGS”). The effective corporate income tax rate then for cannabis businesses is sky high, unless those businesses can capture more COGS.

The IRS has a handy, user-friendly online resource to help cannabis companies with reporting their cannabis taxes, but it is clear that agents are more aggressively pursuing cannabis businesses in the form of audits. Both Ani and Jonathan have seen a significant uptick in IRS cannabis tax audits, and that’s unlikely to change anytime soon since (1) the IRS realized awhile back that it was potentially leaving money on the table under I.R.C. 280E given that lots of cannabis commerce is still all cash; and (2) we now have more data than ever on who’s running a cannabis business and where they’re at in the country (including filed tax returns and suspicious activity reports with financial institutions). As far as back as 2021 (and probably earlier), the IRS has been training its agents with specific regard to cannabis tax audits (as shown by MJbiz Daily’s 2021 FOIA request).

A cannabis tax audit is not your run-of-the-mill audit

Information document requests (“IDRs”) from the IRS are very different for a cannabis businesses than any other business. For example, in a cannabis audit, the IRS will ask for any bank account or credit card used in the operation of the business. This doesn’t happen in a standard audit. The other major difference is that the IRS will want to get in front of a cannabis businesses immediately, including meeting in person and touring the cannabis facility. Both Ani and Jonathan echoed the fact that you’ll want legal counsel ASAP for any IRS interview (some of which can last up to 3-4 hours). Your document retention and organization also needs to be top-flight (with a bookkeeper and/or accountant in tow) to successfully handle an IRS interview as part of an audit.

The IRS has summons power

Sometimes, cannabis businesses think that, just because they’re violating the Controlled Substances Act, they have a license to violate other federal laws. Not so. If cannabis businesses think they can clam up and/or not produce the requested information or documents pursuant to an IDR, they have another thing coming. This is because the IRS has summons power: the IRS can and will demand your presence and your documentation production, which you must comply accordingly or you’re going to be in big trouble with the Department of Justice.

If you don’t comply with these broad IRS powers, you can fully expect penalties and maybe even criminal investigation and prosecution depending on the facts surrounding the audit. The summons power also applies to third parties implicated in the cannabis trafficking (including ancillary businesses). So, timely and fully cooperate with your IDRs accordingly.

Don’t make up documents when it comes to cannabis taxes

It goes without saying that you should never lie to the IRS. However, you also shouldn’t make up documents to satisfy an IDR request. Per Ani and Jonathan, you won’t get in trouble if you don’t have a document on the list. You will suffer, though, if you start making up or backdating documents (like cash logs) to get through an IDR.

The DOJ can prosecute for more than tax evasion

Tax evasion always comes to mind when people think of IRS criminal investigation and prosecution. However, during the webinar, Jonathan pointed out that that’s really just the tip of the iceberg. Depending on what you’re doing when it comes to hiding your money from the IRS, you could also face a conspiracy charge or charges for structuring, or fraud, among other non-tax related criminal charges.

Confidentiality

The webinar revealed that these audits are actually not public information. In fact, there are severe penalties if the government breaches confidentiality. Administrative appeals from the results of an audit also aren’t public information. However, if after the appeal, you petition the U.S. tax court, things become public due to those filings. Any recorded government liens resulting from tax liabilities will also be made public (the liens, not the liabilities).

In the end, cannabis companies should timely pay all taxes owed to the IRS under I.R.C. 280E. The IRS is not an agency with which you want to get cute or experiment. While the cannabis industry is oftentimes a “ask for forgiveness” industry, when it comes to federal income taxes, this is not one of those times.

The post Webinar Takeaways: IRS Cannabis Taxes and Enforcement appeared first on Harris Bricken Sliwoski LLP.

from Canna Law Blog™ https://ift.tt/XrHyBRe
via IFTTT

Jon’s Stone-Cold Cop List #36: Live from New York

Happy belated 4/20 y’all! I hope you enjoyed the special print version of the Cop List that went up last week. That one originally ran in the magazine but I figured since it was the holiday, and I didn’t want to rush a new one out just yet, that was a safe one to let rip. We could call it 35.5 – it was intended to have a more national feel, focusing on products rather than dank specifically, but I’m not pretending that was a suitable replacement for this month. We’re back to our regularly scheduled programming. 

Last week, for the second year in a row, players from across the country (and globe, even) descended on New York City to celebrate our favorite holiday. Just like last year, this was another one for the record books. Between the East Coast’s Zalympix unbelievable showing at Terminal 5, to First Smoke of the Day’s Family Ties Brunch, Zushi’s Lower East Side Pop-Up Store, to the classic Washington Square Park celebration, I’m still trying to recover from the marathon of events that went on across the city. We sesh’d in an abandoned mall in Chinatown, ate insane meals at 2:30 AM regularly, and even watched them film a scene for the new Penguin show for HBO Max. It was pretty excellent by just about every measure.

So, in honor of the trip, #36 is compiled entirely of dank I found last week while stumbling around the city and it’s various events. I mentioned on social a few weeks ago that I wasn’t going to bring any bud with me on the trip, and the city more than provided. Shouts out to all the homies that came up to me throughout the week with some flavors to try, or just some kind words about our efforts over here. I was not expecting as many of you to recognize me as you did, and I’ll be honest, the love you showed in the city that raised me was incredibly special. Thank you. Also to Sasso – appreciate your hospitality as always my guy!

Like usual, you don’t gotta be a stranger. Finding the flame takes a village, and I want to hear what’s getting you up too. Hit me on just about any platform here: @joncappetta

Green Gold Collective

Courtesy Green Gold Collective

I’ve been hearing rumblings about this guy for awhile now, so imagine my surprise when I run into bro on the other side of the country, outside the Player’s Ball – I mean, the First Smoke of the Day Brunch. My homie CGO (who you’ll hear more about soon) was talking to him while I was waiting for the car, and called me over to check it out. While there are a lot of people growing great weed right now, I could immediately see why so many heads were pointing me in that direction. These flowers are special. Although I only got to check out their Pink Lemonade, which was clearly outstanding, I’m declaring right now that I’m going to make a dedicated trip to wherever they are once I get back to California to stick my nose in more of their bags.

Marijuantauk

Courtesy Marijuantauk

I’m not going to lie, I’m abnormally rooting for these hometown heroes. Cultivating out on Long Island, where I spent most of my formative years, not only are these guys sweethearts, but the flower they’re cultivating really shows they not only know what they’re doing, but that they care about the details. They got a trophy at the East Coast Zalympix for having the Heaviest Hitting cut in the competition, with their rendition of Cap Junky, but it was their Biscotti – which I’m affectionately referring to as the ‘Barbecue cut’ because the nose has these hints of almost woody-ness that reminds me of an outdoor BBQ (not the chip flavor) – that really hooked me. I’ve smoked a LOT of Biscotti in my day, and it’s an excellent strain to begin with, but this rendition rekindled that obsession with what feels like a whole new swag.

All Kings

Courtesy All Kings

Another true New York brand, All Kings were a totally new name for me, but boy am I glad we met. Actually grown in the state, they had two cuts to show me: their OG and a ‘Grape Head’. While the OG was definitely a dope varietal, it was the Grape Head that I’ve got to let you know about. This had exactly the nose you’d expect from a cut with grape in it’s name, but the taste of the smoke gave pure grapeade, which I wasn’t expecting. I’m talking that sweet artificial grape flavor, and just like the OG cut this one seriously drooped my eyelids.

Torrone

Courtesy Torrone

A new discovery from the homies at Good Pizza and his breeding partner Exotiks916, I’m really excited about this stash of Torrone I got blessed with last week. Although these guys are based out West now, GP’s a native New Yorker like me, and about as Italian as they come, so all of his cultivars have some sort of Italian American theme – like his initial Carmela, affectionately named after the Sopranos matriarch. This new cut, named after the honey almond treat popular in the motherland, is delicious. While I have no idea how much it actually smells like the dessert, it’s got this wonderful pine-y menthol nose that I can’t get enough of, and it smokes like a dream. 

The Book Club

Courtesy The Book Club

This is another one whose name had reached me before the flower, and I’m happy to report that from my perspective, the hype here is real. The second chapter in the Book Club Cannabis’ story (although I admittedly missed the first one), Osi illustrated to me that this is truly a connoisseur driven brand, with a cut that hits from pretty much every angle. And while you often hear me rave about the nose and flavor, it was really the effect on this one that shined. It genuinely felt heavy – which is appropriate, as it was on Trevy’s page that I saw it first. It’s worth acknowledging here that basically anytime Trev says something’s worth checking out, you should listen.

The Mechanic x Doja

Courtesy The Mechanic

If you’ve read even one of these in the past you’re likely aware I’m a big fan of Doja and the flower he brings to market. I’ve raved about several cultivars, as well as his parties, but perhaps his most impressive move yet has been the developments he’s made out of state. While having pumped out some truly next level gear out of Michigan already, his latest collaboration with The Mechanic in New York has me super geeked. You see, The Mechanic’s been popping several of Doja’s beans, and while I foolishly missed the tasting party and didn’t get to see the majority of the new cuts, the Cherry Runtz he grew is as good as I’ve ever seen it – Cali or otherwise. 

Dallas Growers Club

Courtesy Dallas Growers Club

While these guys are not from New York, they’re also not from Dallas. Well, at least not that Dallas. Hailing out of Oregon, these guys pride themselves on cultivating ‘uncommon cannabis’ and I’ve got to say, they’re true to their tagline. I got to see four different varietals from them, and while they were all delicious tasting, both their Pure Michigan and Strawberry Driver were worth writing home about. My favorite of the crop was definitely the Michigan cut, as it had this weird almost cheese kush nose on it. I don’t know how else to describe it, but it’s a descendent of Mendo Breath, and the flavor is consistent, so if you remember that, add just a bit of sweetness to it. What’s not to love?

Surf’s Up Exotics

Courtesy Surf’s Up Exotics

Another out-of-towner in for the holiday that I met this trip was Surf’s Up Exotics, and they had their new star, ‘The Wave,’ in tow. I instantly saw what they were excited about, as both the nose and look of these buds were certainly top tier. That said, it was actually the flavor of the Wave that ultimately hooked me. Though the nose was initially a sort of minty runtzy expression, this one’s got an almost licorice undertone in the smoke, and it gets stronger as the joint progresses. It’s just a delightful smoking experience you’ll continue to crave long after it’s cashed. The high’s pretty great too, and not as drag-y as you’d expect from something that dark and candy, but the flavor!

Gotti

Courtesy Gotti

I can’t complete this list without mentioning the big winner of the East Coast showdown, Gotti. Bringing home the 1st place trophy for the best overall, 1st place for best tasting, and 3rd place for best smell, their Zkittlez x Zoap selection deserves all the praise it’s receiving. I will admit this is my first time hearing of these guys, so while they’re clearly off to a great start, this is a brand I will certainly be keeping a close eye on as the market develops. Their flower smelled exactly how you’d expect it to, but the judges were right to award it so high on flavor – it’s probably the most delicious tasting smoke from a Zoap cross I’ve ever tried.

Conchiss

Courtesy Conchiss

Out of all the new brands I met last week, this one was probably the most unexpected, and weirdly exciting out of the bunch. Dubbed Conchiss, this guy’s got some really good weed, but it’s the uniqueness of the whole experience that really resonated with me here. With insane cultivar names like ‘Green Eggs & Ham’ (shouts to the Dr.) and ‘Cape Cod Saltwater Taffy’, it was his ‘Pineapple Chroma’ that stopped the show for me. With a true pineapple nose that also holds this weird menthol behind it, this was one of the best tasting new flavors I found this trip. I didn’t dislike the crazy sounding strains either, but the Pineapple, man… there’s some real magic there.

DeLisioso

Courtesy DeLisioso

Now I can’t front and pretend this is the first time I’ve heard of DeLisioso. Founded by America’s longest-serving nonviolent cannabis prisoner Richard DeLisi, and his son Rick, DeLisioso is the American Dream version of turning lemons into lemonade. Launching the brand less than a year after Richard was freed, this was my first time getting hands-on with their flower and I’ve got to say, I’m very stoked on what they’re working with. I tried two cultivars (the purple and yellow bag, although they weren’t labeled beyond that) and while they were both delicious, there’s something really special in that yellow bag. I don’t even know how to describe the nose because it’s just so different from the majority of the market right now, but the smoke was incredibly clean and the high motivated me to knock out half of this list immediately!

The post Jon’s Stone-Cold Cop List #36: Live from New York appeared first on High Times.

from The Latest Marijuana News Today | HighTimes Magazine https://ift.tt/paTDrZe
via IFTTT

Colorado Launches Loan Program for Cannabis Social Equity Businesses

Colorado Governor Jared Polis on Monday announced the launch of a new state-funded loan program for cannabis social equity businesses. 

The new program is designed to provide financing to licensed social equity cannabis businesses, which typically face difficulties raising the capital needed to launch and grow their enterprises. The initiative will be administered by the state Cannabis Business Office (CBO) within the Colorado Office of Economic Development & International Trade (OEDIT) in partnership with NuProject, a Portland, Oregon-based organization working “to build generational wealth via the legal cannabis industry for the Black and Brown communities disproportionately harmed by the War on Drugs,” according to the group’s website.

“This landmark loan program will create and retain 239 good-paying jobs and promote equity in the cannabis industry by providing growing businesses access to funding,” Polis said in a statement from the governor’s office on Monday afternoon. “I am committed to saving small businesses money and ensuring our state remains a great place to start and run a business in every industry. Thank you to NuProject for partnering with Colorado on this exciting milestone and working to support innovation in Colorado’s cannabis industry.”

Cannabis And Capital in Colorado

Cannabis companies have historically faced problems raising capital due to a variety of factors including federal banking regulations and the continuing stigma associated with marijuana and cannabis users. The lack of financing can be particularly challenging for social equity business owners, who often face additional obstacles including racism and generations of economic marginalization.

To help them deal with such challenges, Colorado’s Cannabis Business Loan Program will provide low-interest loans of between $50,000 and $150,000 for social equity cannabis businesses to finance renovations or expansions, the purchase of equipment, real estate or to use as working capital. 

The governor’s office notes that NuProject has a proven history of lending to cannabis businesses, specializing in mission-based and character-based lending. The non-profit’s practices can help entrepreneurs obtain loans even if they have limited cash flow, lack the traditional assets necessary to secure financing or have experienced other challenges in obtaining financing. NuProject also provides mentorship and educational resources to prepare business owners to complete loan applications.

“NuProject is committed to redirecting the typical flow of financing so that small business owners in the cannabis industry, especially those who’ve been historically excluded from access to capital, can access the resources they need to grow their businesses,” said NuProject CEO Jeannette Ward Horton. “When cannabis business owners have access to financial support and the know-how to put that funding to work, they can run better businesses and have the opportunity to build generational wealth through the cannabis industry.”

NuProject and the CBO will administer the Cannabis Business Loan Program as a revolving loan fund. As loans to business owners are repaid, the interest generated will be reinvested into the fund to support future borrowers. The state’s initial investment of $1 million is expected to lend $2.9 million over the next 10 years, creating and retaining jobs in Colorado, according to state officials.

The Cannabis Business Loan Program is the third CBO funding source available for Colorado’s licensed social equity cannabis businesses and is designed to support larger, more established cannabis businesses as they continue to grow. The Cannabis Business Grant, launched in 2021, provides $25,000 Foundational Grants to help early-stage cannabis businesses with the costs to launch their operations and $50,000 Growth Grants to support existing cannabis businesses as they expand or refine their operations.

“Colorado’s Cannabis Business Loan Program is at the forefront of the cannabis industry, creating a new model to help these small business owners access the resources they need to grow and thrive,” said Eve Liberman, OEDIT executive director. “Together with NuProject, the Cannabis Business Office is making it possible for cannabis businesses to grow, create new jobs and contribute to a Colorado economy that works for everyone.”

Activists Seek More Support For Social Equity Businesses

Sarah Woodson, a cannabis social equity advocate and business owner, welcomes Colorado’s new loan program for eligible companies in the industry. But she also would like the CBO to update the public on the success of the earlier grant programs.

“It would be interesting to see what has happened with the money that has been given out so far,” Woodson told Westword. “I don’t think many of those businesses have opened yet.”

Woodson is calling on Colorado lawmakers to pass House Bill 1020, legislation that would allow social equity cannabis businesses to make deliveries directly to consumers without partnering with a licensed dispensary. The bill has been pending in the legislature for more than three months but has so far received only two hearings. Woodson said that the bill is being delayed by opposition from the established cannabis industry and a lack of funding. According to a fiscal note on the bill, creating the new licensing system necessary to implement the legislation would cost slightly more than $360,000.

“All we need is about $370,000 to pass our bill, yet we can’t find that,” she said.

Woodson said she is preparing a public records request to learn how much previous funding has been spent. If there is remaining funding, she would like to see the CBO cover the costs of implementing House Bill 1020.

“If there’s over $2 million left, then $370,000 shouldn’t be an issue,” she said. “If there’s $1 million or less, then that is a different issue.”

“The natural nexus is the CBO office, but we want to be respectful of what they have planned. We just want to know how much money is left, and that’s not very clear,” she added. “We’re asking for less than $370,000 for existing businesses to stay in business, many of which were started by the CBO. Social equity is one of the governor’s wildly important goals, so we need to get this done.”

The post Colorado Launches Loan Program for Cannabis Social Equity Businesses appeared first on High Times.

from The Latest Marijuana News Today | HighTimes Magazine https://ift.tt/CAYbizh
via IFTTT

Cannabis Litigation in a Down Market

REGISTER HERE 

The West Coast cannabis industry is struggling. In this free webinar, cannabis business litigators Jihee Ahn (California; Oregon) and Jesse Mondry (Oregon) will discuss the state of the industry and how depressed market conditions are affecting those considering litigation or alternative dispute-resolution options.

Tune in Tuesday, May 16th at 10am PT for a conversation covering trending claims affecting cannabis businesses nationwide, and what operators must consider as they pursue those claims.

Questions and comments will be answered throughout the webinar and considered upon registration prior to the event.

Key Takeaways

• Breach of contract / collections
• Receiverships
• ABCs
• Bankruptcy
• Closely held business disputes
• Recovering assets
• Steps to protect your business from being owed $$

Register Here!

The post Cannabis Litigation in a Down Market appeared first on Harris Bricken Sliwoski LLP.

from Canna Law Blog™ https://ift.tt/L7foHWY
via IFTTT

U.K. University Creates Postgraduate Course on Clinical Psychedelics

The University of Exeter, a university in the United Kingdom, is debuting one of the first postgraduate qualifications on psychedelics in the world, the Guardian reports. The program, called Psychedelics: Mind, Medicine, and Culture, aims to capitalize on Exeter’s lauded psychedelics research center by sharing their expertise through training with therapists, mental health advocates, healthcare workers, and anyone else in the space of psychedelics. The University of Exeter recently unveiled the plans at Europe’s largest psychedelics conference Breaking Convention. 

The “psychedelic renaissance” is going global. Australia established itself as the first country to allow psychiatrists to prescribe psychedelics for treatment-resistant depression. And now, we can appreciate further efforts such as The University of Exeter’s training across the pond. In the United States, this is demonstrated in ketamine-assisted therapy for treatment-resistant depression, to the legalization efforts of psilocybin therapy in states like Oregon and Colorado, to the soon-to-be-secured legal status of MDMA to treat PTSD. Of course, remember that indigenous cultures, as with their relationship with peyote, have consistently recognized the spiritual benefits of psychedelic therapy, so the word “renaissance” is always used with a caveat. 

With that in mind, granted that as a result of the pandemic, mental health is on everyone’s minds, whether they’re struggling and searching for the proper treatment or looking to help others through psychedelics (or both). Therefore, any help in normalizing the psychedelic medicine community is welcome. This is especially true if the information is rooted in science and directed at communities that need it most, such as those treating mental health patients, such as Psychedelics: Mind, Medicine, and Culture. 

Reflecting the growing interest and new (by our standards) acceptance of psychedelic medicine, the Guardian reports that the psychedelic healthcare market will be worth $8.3 billion by 2028. Psychedelics: Mind, Medicine, and Culture aim to educate healthcare workers on how to safely work with psilocybin, LSD, MDMA, and other psychoactive drugs in therapeutic work, to help ensure that money creates the best outcome for patients. 

In addition to successfully spreading science-approved info on psychedelics by creating a certificate on the topic with the backing of the respected Exeter University, this program aims to garner trust from outside parties regarding the safety and efficacy of psychedelic-assisted therapies. Psychedelics: Mind, Medicine, and Culture also aims to pave the way for other programs, creating a blueprint that could help introduce new therapies that will become available over the next five years as treatments finish their final stages of clinical trials. 

Celia Morgan, a professor of psychopharmacology at the University of Exeter and a co-lead of the program, said: “As the world wakes up to the potential for psychedelics to be an important part of the toolkit to treat some of our most damaging mental health conditions, it’s vital that we’re training the workforce to meet the demand. The global body of high-quality evidence is now irrefutable – psychedelics can work where other treatments have failed.” 

Morgan made sure to note that the most significant challenges to accessing psychedelic therapeutic mental health care were legal rather than about any medical risk. She continued: “This shows how far we have come from the fear and stigma that dogged this field for years, a change which we also see reflected in leading universities around the world conducting gold-standard clinical trials…we remain optimistic that this may change in the UK with the increasing weight of evidence, as it is starting to in countries like the US and Australia.”

University of Exeter’s postgraduate program includes existing psychedelic therapies, psychiatry and neuroscience, and philosophy, in addition to addressing the importance of decolonizing psychedelic research.

The post U.K. University Creates Postgraduate Course on Clinical Psychedelics appeared first on High Times.

from The Latest Marijuana News Today | HighTimes Magazine https://ift.tt/cayQvRH
via IFTTT

Delaware legalized cannabis dispensaries: Here’s what happens next

See when Delaware dispensaries open for recreational sales.

The post Delaware legalized cannabis dispensaries: Here’s what happens next appeared first on Leafly.

from Leafly https://ift.tt/4zYLmcO
via IFTTT

Oregon’s Interstate Commerce Bill for Marijuana Seeds and Intoxicating Hemp Products

I wanted to drop a line today on an interesting piece of cannabis legislation moving through the Oregon legislative session. The bill at issue is omnibus SB 353 (most recent mark-up here). This is a very different SB 353 than its placeholder from back in January when I published our annual Legislative Forecast and Report. The bill has been gutted and stuffed as they say down in Salem. Most interestingly, the reconstituted SB 353 would allow OLCC licensees to export intoxicating products that fall under the federal definition of hemp, along with marijuana seeds.

Import and export of “hemp” cannabinoid products

As drafted, SB 353 would allow OLCC licensees (and others) to import and export items that fall under the federal definition of hemp. This would include a fair bit of what is called “usable marijuana” under OLCC administrative rules, as well as certain edibles and concentrates (ex.: THCa). All very interesting stuff, especially coming from the first state to ban the sale of artificially derived cannabinoids (with limited exceptions).

You may be wondering: why is this a big deal? Well, OLCC licensees are not allowed to ship any of their crops or products out of state. Unlike hemp licensees and other businesses, they aren’t allowed to take advantage of the truck-sized, intoxicating loopholes that were created by the 2018 Farm Bill. That would change here.

Why we want import and export of cannabinoid products

SB 353 has been plugged by industry advocates as potentially helpful with Oregon’s oversupply issue. OLCC isn’t allowed to say anything formally about this bill (new rules), but I’ve gathered from Commission contacts that OLCC is working to support the concept at a technical level. OLCC is also pushing SB 353, silently, as introducing better regulated, properly tested, and safely packaged products to the hemp ingestibles market. That market is a national goat rodeo, so I agree with them here.

Another reason Oregon may want to pursue this bill is to beat California and other states on an export opportunity. Both Oregon and California (and now Washington) have THC program export bills, but those laws are anticipatory and mostly symbolic. (See our thoughts here and here). SB 353 would allow shipments right away for federally lawful products, even if they originate within the OLCC system. Neither California nor Washington – nor any other state with a closed-loop, “marijuana” program – allows for licensee shipments interstate.

How import and export of cannabinoid products would work

SB 353 requires OLCC to “establish a registration program for hemp products that contain cannabinoids and are intended for human or animal consumption or use.” The registry would apply to sellers both inside and outside of Oregon, and the registrants would have to submit product information to OLCC and meet various labeling requirements.

Note that hemp-derived topical products are excepted from the SB 353 regime. This is consistent with FDA’s position that such products are legal under the Farm Bill, when sourced from industrial hemp. In general, the import and export of all cannabinoid products under SB 353 would simply have to comply with federal law.

Import and export of marijuana seeds

This may be a separate consideration, depending on who you ask, but SB 353 address seeds as well. Specifically, the draft bill removes from the definition of “marijuana items” both “marijuana seeds [and] industrial hemp seeds imported or exported in accordance with applicable state and federal law.” So, seeds possessed by OLCC licensees that will germinate into high THC plants would be shippable too.

I’m not going to analyze today whether the shipment of marijuana seeds is actually legal under federal law. Suffice it to say that DEA has opined that it is— at least for now. That seems to be good enough for the drafters of this bill.

Will SB 353 pass?

I am not sure and I doubt anyone else is. The bill has been moving, though. It’s already been through the Judiciary Committee (earning a “Do Pass” recommendation), then public hearings and a work session. As of April 12, SB 353 is off to the Ways and Means Committee. I’ve written many times that Ways and Means can be a graveyard of sorts, although we do see bills pushed through.

If SB 353 passes with import/export intact, one interesting thing to watch would be interplay between Oregon’s new law and the federal Farm Bill, which is reauthorized every five years. The 2018 Farm Bill is set to expire September 30, 2023. Oregon’s legislative session ends June 25, 2023. I’ll check in again at the end of the Oregon session, unless something big happens prior.

The post Oregon’s Interstate Commerce Bill for Marijuana Seeds and Intoxicating Hemp Products appeared first on Harris Bricken Sliwoski LLP.

from Canna Law Blog™ https://ift.tt/zpFiUbT
via IFTTT