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California Gov. Gavin Newsom To Review 17 Cannabis, Psychedelics Bills

September 21, 2023 Published by

As of the California State Legislature ended on Sept. 14, more than 17 cannabis or psychedelic bills were sent to California Gov. Gavin Newsom to potentially be signed. The bills include a wide variety of proposals, which Newsom must either sign, veto, or refuse to sign and allow them to be approved without his signature.

In the past, Newsom has expressed support for cannabis and psychedelics, but it is currently unclear which of these 17 bills he will support. However, he has under one month, or until Oct. 14, to address the following bills.

SB-51: Cannabis provisional licenses: local equity applicants

Social equity applicants would be permitted to apply for or renew their provisional licenses between now and January 1, 2031. Currently, provisional licenses are not being accepted in California.

SB-58: Controlled substances: decriminalization of certain hallucinogenic substances.

This bill was passed on to the Gov. on Sept. 13, and would legalize possession, cultivation, and transportation of substances such as psilocybin, psilocyn, DMT, and mescaline. The bill is led by Sen. Scott Weiner, who believes that it will help many patients, especially military veterans, within the state. “California’s veterans, first responders, and others struggling with PTSD, depression, and addiction deserve access to these promising plant medicines,” said Wiener when the bill passed in the Assembly. “SB-58 has prudent safeguards in place after we incorporated feedback from three years of deep engagement with a broad array of stakeholders. We know these substances are not addictive, and they show tremendous promise in treating many of the most intractable conditions driving our nation’s mental health crisis. It’s time to stop criminalizing people who use psychedelics for healing or personal well-being.”

SB-302 Compassionate Access to Medical Cannabis Act

While only terminally ill patients are currently allowed to use medical cannabis at healthcare facilities, this bill would allow anyone over 65 to treat chronic illness with medical cannabis if they choose. The bill is an expansion of the currently existing Compassionate Access to Medical Cannabis Act, or Ryan’s Law.

SB-540: Cannabis and cannabis products: health warnings

If passed, SB-540 would instruct the Department of Cannabis Control to make an education brochure that would be given to consumers when they purchase products from a dispensary for the first time (both at a retail store or upon delivery). The info would be updated on January 1, 2030, and every five years after that date.

SB-622: Cannabis regulation: plant identification program: unique identifier

A proposal from Sen. Ben Allen and Juan Alanis would change how cannabis products are identified with “a unique identifier to be recorded in a manner as determined by the department by regulation.” The bill doesn’t directly mention removing the plastic tags that are currently used to track cannabis plants, but it could allow digital tags to be utilized in the future for a more sustainable, ecofriendly approach.

SB-700: Employment discrimination: cannabis use

This bill would ban employers from inquiring about an applicant’s personal cannabis use, which is added to current applicant protections from the already existing California Fair Employment and Housing Act. According to Sen. Steven Bradford, 

SB-753: Cannabis: water resources

With the preservation of groundwater and environmental harm, this bill would make it a felony to grow and harvest more than six cannabis plants, especially if it is grown “Intentionally or with gross negligence causing substantial environmental harm to surface or groundwater, public lands, or other public resources.”

SB-833: Cannabis licensing: cultivation licenses: changing license type: inactive status

Currently, cannabis cultivators who wish to change their license status to a smaller grow to inactive (whether permanently or just temporarily), must redo the complete process through the Department of Cannabis Control (DCC). This bill would allow them to make this change through the DCC without resubmitting their application in its entirety.

AB-374: Cannabis: retail preparation, sale, and consumption of non cannabis food and beverage products

Presented to the governor on Sept. 15, AB-374 would make “Amsterdam-style” cannabis cafes legal. With approval, dispensaries will be able to offer non-cannabis food and drinks, as well as “live musical or other performances on the premises of a licensed retailer or microbusiness in the area where the consumption of cannabis is allowed.” According to the bill sponsor, Assemblymember Matt Haney believes the bill would benefit consumers and also cities. “Lots of people want to enjoy legal cannabis in the company of others,” Haney said. “And many people want to do that while sipping coffee, eating a scone, or listening to music. There’s absolutely no good reason from an economic, health or safety standpoint that the state should make that illegal. If an authorized cannabis retail store wants to also sell a cup of coffee and a sandwich, we should allow cities to make that possible and stop holding back these small businesses.”

AB-623: Cannabis: citation and fine

According to current California law, cannabis laboratory testing is conducted by testing a batch of products to ensure that “the chemical profile of the sample conforms to the labeled content of compounds.” In order for licensed labs to test edibles and issue a certificate of analysis, the report must show “that the milligrams of THC per serving does not exceed 10 milligrams per serving, plus or minus 10%.” In other words, the certificate excludes products with less than 10 mg THC (such as low-dose edibles with only 5 mg THC). If passed, AB-623 would require new DCC regulations that keep low-dose edibles in mind.

AB-993: Cannabis Task Force

This bill would add representatives from the Civil Rights Department and the Department of Industrial Relations, the existing cannabis task force in California.

AB-1021: Controlled substances: rescheduling

This bill would allow California health care professionals to prescribe cannabis if it reschedules any Schedule I substance. Current Schedule I substances include cannabis, as well as LSD, heroin, peyote, ecstasy, and more.

AB-1126: Cannabis: citation and fine

This proposal would ban the use of the universal cannabis symbol on cannabis packaging for products that are not authorized to use it. Any companies using the symbol without approval will be seized by the California Department of Tax and Fee Administration.

AB-1171: Cannabis: private right of action

Legal action would be permissible for cannabis business license owners against illegal cannabis businesses in the California Supreme Court.

AB-1207: Cannabis: labeling and advertising

This bill would potentially alter the definition for cannabis product packaging, by “prohibiting the sale, distribution, or manufacture of cannabis, cannabis products, packaging, or labeling that are attractive to children, as defined.” It further prohibits imagery including cartoons, toys, robots, real or fictional humans, fictional animals or creatures, as well as fruits or vegetables (unless it’s used to describe the flavor of the product).

AB-1448: Cannabis: enforcement by local jurisdictions

A person currently engaging in illegal cannabis without a license is subject to civil penalty funds ($10,000 per day per violation but not to exceed $30,000 per day). This bill would take some of those civil penalty money and move them to treasurers of local jurisdictions.

AB-1684: Local ordinances: fines and penalties: cannabis

In this bill, fines attributed to illegal cannabis cultivators would also apply to other illegal businesses such as processors and distributors.

In the past, Newsom has expressed support for cannabis and psychedelics, but it is currently unclear which of these 17 bills he will sign. However, he has under one month, or until Oct. 14, to address these bills.

Newsom has signed three bills since July that are cannabis-related. In July, he signed SB-250 which provides immunity to people who test positive for a controlled substance, such as fentanyl, specifically in regards to working with law enforcement and sharing where they received the drug. Also in July, Newsom signed AB-128, which added cannabis event organizers to the list of license classifications, and updated requirements for background checks for cannabis-related businesses. He also signed SB-756 on Sept. 1, which allows the California State Water Board to investigate and take action against illegal cannabis cultivation.

The post California Gov. Gavin Newsom To Review 17 Cannabis, Psychedelics Bills appeared first on High Times.

New York Cannabis Regulators Expand Licenses to Disabled Vets, Women, Minorities

September 14, 2023 Published by

Cannabis regulators in New York state gave the green light to pass updated and expanded regulations Tuesday, signaling a more inclusive shift in the application process for licensed cannabis shops. Until now, such licenses were primarily limited to “justice-involved” people with prior convictions related to cannabis that occurred when the drug was still illegal.

Under the updated rules, “social equity” applicants, including disabled military veterans, minority and women-owned businesses, and struggling farmers, will also be eligible to apply for licenses to operate marijuana dispensaries starting on October 4th, the New York Post reports. In policy, social equity aims to ensure fairness and justice by addressing systemic inequalities and providing equal opportunities for all. It acknowledges existing disparities and works to eliminate them. But, despite all the hardships that vets endure, this label hasn’t always applied to them. The new laws acknowledge the sacrifices veterans have made and the lack of support when trying to start a business after returning to civilian life. 

In August, a group of four disabled veterans sued Governor of New York Kathy Hochul’s administration and the state Cannabis Control Board. Their lawsuit challenged the exclusion of disabled veterans from applying for the initial round of licenses, which the board focused on giving to folks with prior marijuana convictions.

“The MRTA [Marijuana Regulation and Taxation Act] had already established a goal to award 50% of all adult-use licenses to social and economic equity applicants. But instead of following the law, OCM and CCB created their own version of ‘social equity’ and determined for themselves which individuals would get priority to enter New York’s nascent adult-use cannabis market,” reads a statement on behalf of the veterans bringing the legal action.

Many veterans have a passion and personal connection to cannabis for its role in treating PTSD. Back in June, the Senate Appropriations Committee approved a spending bill that includes an amendment allowing the U.S. Department of Veterans Affairs (VA) doctors to recommend medical cannabis for their patients in legal states. It is slated to move forward as part of the approved legislation that funds the VA for the 2024 Fiscal Year.

“It’s about time,” said Carmine Fiore, a disabled vet and one of the plaintiffs in the case. “We finally have an equitable playing field. We are finally being prioritized — as we should have been under the law.”

The potential ramifications of the new rules on the ongoing litigation remain uncertain. Following their Tuesday meeting, the cannabis regulators involved in the lawsuit met for an executive session behind closed doors. This private talk could offer insights into their future course of action.

Fiore said while he’s now allowed to apply for the cannabis store license, it didn’t “stop the harm” from being kept from applying for a Conditional Adult- Retail Dispensary (CAURD). “They gave the justice-involved an unfair advantage,” he said.

But now, the Cannabis Control Board rules dramatically expanded the eligibility requirements for entrepreneurs applying for licenses. Cannabis farmers, cultivators, distributors, processors, and micro-businesses can now have a piece of the pie. 

New York’s legal cannabis market has faced a messy and problematic launch. While technically, there are only 23 cannabis stores statewide, nine of which are in New York City, an estimated 1,500 unlicensed smoke shops sell weed. While these legal gray areas, often more affordable stores with easy access, can be a dream come true to cannabis consumers. However, the red-tape-wrapped situation has left farmers feeling left behind, as they end up stuck with massive quantities of harvested cannabis, given the limited means of legal sale.  

But on Tuesday, state officials said they plan to fix that and expand the cannabis market. 

“Today marks the most significant expansion of New York’s legal cannabis market since

legalization, and we’ve taken a massive step towards reaching our goal of having New Yorkers being able to access safer, regulated cannabis across the state,” said Chris Alexander, executive director of the Office of Cannabis Management, reports the New York Post. 

“We are immensely proud to be building the fairest, most competitive cannabis industry in the nation — one that puts those most harmed by prohibition first and offers a true opportunity for all New Yorkers — not just large corporations — to compete and thrive,” he added.

Multi-state cannabis companies currently serving only New York medical marijuana patients will have the chance to expand their offerings to all New Yorkers for adult use, not solely medical, starting at the end of the year. However, several individuals and small operators raised concerns at the Tuesday meeting. They fear that such larger firms would establish dominance in the market before they could even start their operations. Many in attendance requested that state regulators postpone the entry of multi-state operators into the market.

A group backed by medical cannabis businesses welcomed the opening of the application process as a positive first step. However, they also expressed concern that the state isn’t doing enough to speed up the process of allowing them to sell recreational weed sooner.

“The rules passed today are a step forward. But until the State actually issues these licenses and these dispensaries get open and operational, New Yorkers will continue to be denied the tax revenue, safe cannabis, and equitable system they were promised,” said Kirsten Foy of the Coalition for Access to Regulated and Safe Cannabis.

The post New York Cannabis Regulators Expand Licenses to Disabled Vets, Women, Minorities appeared first on High Times.

New York Supreme Court Judge Lifts Injunction for Small Number of Cannabis Licenses

August 30, 2023 Published by

New York Supreme Court Justice Judge Kevin Bryant recently lifted a temporary injunction that previously halted approval for any state cannabis licenses on Aug. 25. However, only 30 licensees are currently affected by the decision compared to the statewide total of more than 400 applications that are still on hold. 

“As such, those licenses identified by the office of cannabis management will be deemed exempt from the injunction,” Bryant said about his decision.

Those 30 licensees were labeled “ready to open” by both the Cannabis Control Board and the city in which they will operate. According to a PIX11 news report, applicants could potentially become exempt from the injunction if they need their dispensary income to help them financially. “The Judge’s August 18 order outlined certain factors and our job as attorneys representing CAURD licenses is to ensure that our clients are protected and that they fit within an exemption so we need to work to make sure they’re in line with the judge’s order,” said Conditional Adult-Use Retail Dispensary (CAURD) attorney Jorge Luis Vasquez.

In response to Byrant’s most recent decision, the Office of Cannabis Management issued a statement regarding exemptions for those provisional licensees. “While today’s ruling is a disappointment, we are committed to working with the Cannabis Control Board to find a way forward that does not derail our efforts to bring the most equitable cannabis market in the nation to life.”

The lawsuit began on Aug. 2 when a group of military veterans introduced a lawsuit against the Office of Cannabis Management (OCM) and New York Cannabis Control Board, claiming that those agencies did not set up a properly working cannabis industry as stated in the state’s CAURD license, state officials prioritized “justice involved” applicants over disabled veteran applicants.

The Marijuana Regulation and Taxation Act was originally signed in March 2021 by former Gov. Andrew Cuomo, and includes a list of five “social and economic equity” groups that would receive priority for a cannabis license: distressed farmers, individuals who live in areas disproportionately impacted by the War on Drugs, minority-owned businesses, service-disabled veterans, and women-owned businesses.

The lawsuit includes Carmine Fiore (who served eight years in the Army and National Guard), Dominic Spaccio (who spent six years in the U.S. Air Force), William Norgard (a former Army veteran), and Steve Mejia (with six years spent in the Air Force), who are represented by attorneys Brian Thomas Burns, Selbie Lee Jason, and Patrick Joseph Smith, of Clark Smith Villazor.

According to plaintiff Fiore, he and other veterans helped get cannabis legalized, but now are being denied an opportunity to take part in the state’s legal industry and “cast aside for a separate agenda,” Fiore told CBS News.

“From the beginning, our fight has always been for equal access to this new and growing industry,” a joint statement from all four veterans said. “We look forward to working with the state and the court to open the program to all eligible applicants.”

As a result, Judge Bryant issued an injunction on Aug. 7 that prevented the New York Office of Cannabis Management from approving licenses for any new cannabis stores temporarily. In a hearing on Aug. 18, Bryant extended the injunction and said that the CAURD program is in “legal jeopardy,” and predicted that the OCM’s decision not to award licenses to the veteran defendants caused “irreparable harm.”

Clark Smith Villazor released a statement on LinkedIn in response to Bryant’s decision last week. “In a ruling today in favor of Clark Smith Villazor LLP’s four service-disabled veteran clients seeking to enter New York’s nascent retail marijuana industry, a New York State Supreme Court Justice issued a preliminary injunction that largely halts the processing of allegedly unconstitutional conditional adult-use retail dispensary (CAURD) licenses in the cannabis industry,” the firm wrote about the ruling on Aug. 18. “In a 16-page decision, Justice Kevin Bryant found that CSV’s clients ‘presented persuasive and compelling authority’ that the state regulators ‘failed to follow the clear language of the applicable legislation’ by failing to open the retail-dispensary application period to everyone at the same time, including to priority groups like service-disabled veterans.”

Currently, only 23 licensed cannabis stores are open for business in New York, and the decision has halted all progress and is negatively impacting cannabis owners across the state.

Last week, CEO of CONBUD, Coss Marte told High Times how prior to cannabis legalization in New York, 94% of cannabis-related arrests included Black and Latino residents. “We’ve paid our dues. We’ve done the time, and if there’s one thing we hope for the world and the court to know, it’s that like cannabis, we’re here for good and we are here to stay,” Marte said. “We had the opportunity to be heard and to fight on behalf of all of our fellow CAURD licensees who will experience irreparable harm if they’re barred from operating their businesses, and we are confident and hopeful that the court wants a swift resolution that honors the original promises made to justice-impacted license holders.”

The Cannabis Control Board is set to hold a meeting on Sept. 12 to vote on state licensing regulations. “I want this to be as easy as possible, I don’t want to waste unnecessary time,” Bryant said, who also scheduled the next hearing of the case for Sept. 15.

The post New York Supreme Court Judge Lifts Injunction for Small Number of Cannabis Licenses appeared first on High Times.

New York Weed License Pause Extended Two Weeks as Shop Owners Protest

August 15, 2023 Published by

A judge’s order forcing a temporary pause on the issuing of cannabis dispensary licenses in New York was extended for two weeks on Friday as business owners impacted by the injunction rallied outside an Ulster County courthouse to plead their case. Supreme Court Justice Kevin Bryant withheld a ruling at a hearing in a legal challenge to New York’s cannabis dispensary regulations brought by a group of military veterans, setting a new hearing in the case for August 25. 

Bryant’s ruling keeps in place a temporary injunction issued last week barring the New York Office of Cannabis Management (OCM) from issuing new Conditional Adult-Use Retail Dispensary (CAURD) licenses or further processing approved licenses, preventing licensees from getting their businesses up and running.

Lawsuit Filed By Veterans

The lawsuit was filed earlier this month by four veterans who have served a combined total of more than two decades in various branches of the U.S. military. The vets argue that restricting retail licenses to those with cannabis convictions violates the state Constitution and was not approved by the legislature when it legalized adult-use cannabis two years ago.

The Marijuana Regulation and Taxation Act, the 2021 law that legalized recreational marijuana in New York, includes provisions that set a goal of awarding at least half of the state’s recreational marijuana dispensaries to social and economic equity applicants. Under a program launched by New York Governor Kathy Hochul last year, the state’s first CAURD licenses for retail cannabis shops have been reserved for “individuals most impacted by the unjust enforcement of the prohibition of cannabis or nonprofit organizations whose services include support for the formerly incarcerated.” 

To be eligible for a CAURD license, applicants must either have had a cannabis conviction or be the family member of someone with a cannabis conviction, among other criteria. Nonprofits with a history of serving formerly or currently incarcerated individuals were also eligible to apply for a CAURD license. So far, the Office of Cannabis Management (OCM), the state’s cannabis regulatory agency, has issued 463 CAURD licenses, although less than two dozen dispensaries have opened statewide.

Brian Burns, an attorney representing the four plaintiffs, said at Friday’s hearing that his clients have been denied the CAURD program’s benefits for early licensees, including access to strictly regulated retail locations.

“That pushes this from being late to the party to potentially exiled from the process,” Burns told the Democrat Chronicle.

“I don’t think you can quantify how being subjected to an unconstitutional program impacts a person,” Burns said when asked by reporters to detail the potential harm done to the veterans caused by the CAURD program.

At Friday’s hearing, Bryant also set a deadline of 5:00 p.m. Tuesday for litigants to file revised arguments in the case. It is possible the judge could make a ruling based on those filings, according to media reports, but Bryant’s decision is more likely to come at the hearing scheduled for August 25.

Licensees Rally Against Lawsuit

Outside the courtroom in Kingston, New York, a group of cannabis business owners rallied to describe how the injunction is impacting their businesses and to encourage Bryant to dismiss the lawsuit. Many noted that a delay in opening additional licensed retailers will prolong the influence unlicensed operators have on New York’s recreational cannabis market.

Coss Marte, CEO of CONBUD, a CAURD-licensed business with a mission to hire previously incarcerated individuals, joined with three other licensees to file a motion at Friday’s hearing to give impacted entrepreneurs a voice in the proceedings. He notes that only three years ago, before the legalization of cannabis, Black and Latino New Yorkers made up 94% of New York City’s drug arrests, usually for simple possession.

“We’ve paid our dues. We’ve done the time, and if there’s one thing we hope for the world and the court to know, it’s that like cannabis, we’re here for good and we are here to stay,” Marte said in a statement to High Times. 

“We had the opportunity to be heard and to fight on behalf of all of our fellow CAURD licensees who will experience irreparable harm if they’re barred from operating their businesses, and we are confident and hopeful that the court wants a swift resolution that honors the original promises made to justice-impacted license holders,” he added.

CAURD Licensee Josh Canfield said that Bryant’s order is forcing business owners who were only days away from opening to delay their plans. In the meantime, a settlement in the case could put things back on track.

“The judge extended the temporary [injunction] that suspends all CAURD operations that are not operational at this time including the ones that were slated to open as soon as next week,” Canfield wrote in an email to High Times. “The judge has urged all parties to try and work together to come up with a solution that is fair to each side, and to do that by the next time they convene in court.” 

The post New York Weed License Pause Extended Two Weeks as Shop Owners Protest appeared first on High Times.

New York Judge Pauses Cannabis Dispensary Licensing

August 11, 2023 Published by

A New York judge on Monday issued a temporary injunction barring state cannabis regulators from issuing licenses for retail marijuana dispensaries in response to a lawsuit challenging the rules for obtaining the lucrative permits. A group of military veterans filed the lawsuit last week, arguing that the state’s rules limiting the first Conditional Use Retail Dispensary (CAURD) licenses to those with previous marijuana convictions violates state law and New York’s Constitution.

The lawsuit was filed by four veterans who have served a combined total of more than two decades in various branches of the U.S. military. The vets argue that restricting retail licenses to those with cannabis convictions violates the state Constitution and was not approved by the legislature when it legalized adult-use cannabis two years ago.

The Marijuana Regulation and Taxation Act, the 2021 law that legalized recreational marijuana in New York, includes provisions that set a goal of awarding at least half of the state’s recreational marijuana dispensaries to social and economic equity applicants. Under a program launched by New York Governor Kathy Hochul last year, the state’s first CAURD licenses for retail cannabis shops have been reserved for “individuals most impacted by the unjust enforcement of the prohibition of cannabis or nonprofit organizations whose services include support for the formerly incarcerated.” 

To be eligible for a CAURD license, applicants are required to either have had a cannabis conviction or be the family member of someone with a cannabis conviction, among other criteria. Nonprofits with a history of serving formerly or currently incarcerated individuals were also eligible to apply for a CAURD license. So far, the Office of Cannabis Management (OCM), the state’s cannabis regulatory agency, has issued 463 CAURD licenses, although less than two dozen dispensaries have opened statewide.

Matt Morey, an attorney and legal analyst, says that the MRTA established service-disabled veterans as a sub-class of social and economic equity applicants who could be given priority in cannabis licensing. But so far, the OCM has only approved applications from justice-involved individuals.

“The statute specifically included those individuals as individuals that would be prioritized with respect to applying for and gaining approval of an adult use retail license,” Morey told Spectrum News.

The veterans who filed the lawsuit last week argue that the state’s implementation of the CAURD program unfairly and improperly excludes other potential social and economic equity applicants, including disabled veterans and members of minority groups.

“Individuals like service-disabled veterans, who are also social equity applicants, who should be prioritized under the MRTA – the Marijuana Regulation and Taxation Act – the plaintiffs are arguing that they’ve been harmed by being left out of this first mover’s advantage,” said Fatima Afia, an attorney for the plaintiffs.

William Norgard, a U.S. Army veteran and one of the plaintiffs in the case, said that New York’s implementation of MRTA puts him and other veterans in the unusual position of challenging the government.

“It’s out of character for a veteran to sue the state to uphold a law,” Norgard said in a statement when the lawsuit was filed. “We take oaths to defend the laws of our nation, and trust — maybe naively — that government officials will faithfully and legally execute those laws. What the Office of Cannabis Management is doing right now is in complete breach of that trust. As veterans, we know that someone has to hold the line.”

Order Bars OCM From Issuing New Licenses

The judge’s temporary restraining order bars the OCM from issuing or processing additional licenses for marijuana retailers until the court rules otherwise. When asked for comment after the lawsuit was filed, an OCM spokesperson said the agency does not comment on pending litigation. Later, the agency said it had received the injunction and would comply with the judge’s ruling.

“The Office of Cannabis Management (OCM) is aware of the Court’s Order and is adhering to its requirements,” the agency wrote in a statement on Tuesday. “We are actively communicating with CAURD applicants and provisionally approved licensees to inform them of the impact of the Court’s order on OCM operations.”

State Senator Jeremy Cooney, the chair of the New York State Senate Subcommittee on Cannabis, released a statement on Monday evening in response to the judge’s temporary injunction.

“I am deeply disappointed in today’s court decision, which temporarily stops the awarding of conditional cannabis retail licenses in New York State,” said Cooney. “It is no secret that New York’s adult-use cannabis roll-out has been slower than expected, and now is not the time to stand in the way of progress made. We must focus on awarding non-conditional licenses, which will prioritize social equity candidates and allow more businesses to open.”

The judge’s restraining order will cause further delay in the rollout of New York’s regulated marijuana industry, which is already facing steep challenges and an entrenched illicit cannabis market.

“This is going to drag things out even further,” Morey said. “This has not been a smooth rollout by any means with respect to these programs.”

Morey said that the dispensary licenses already issued face no immediate jeopardy from the judge’s ruling. But if the regulations governing licensing are ruled invalid, the fate of current licensees could be uncertain.

“If the creation of the entire CAURD program is deemed to be unconstitutional, then that would then raise the question as to whether or not previously issued licenses are in fact invalid at this point under the program, and that remains to be seen,” he said.

The post New York Judge Pauses Cannabis Dispensary Licensing appeared first on High Times.

Military Veterans File Suit Against New York’s Cannabis Licensing Rules

August 8, 2023 Published by

A group of four military veterans last week filed suit against New York’s Office of Cannabis Management (OCM), claiming that the agency’s rules that prioritize applicants with prior marijuana convictions for cannabis dispensary licenses violate the state’s 2021 marijuana legalization statute. In a complaint filed in the New York State Supreme Court, the four plaintiffs argue that state regulators failed to follow the Marijuana Regulation and Taxation Act (MRTA) when it did not issue cannabis retail licenses to disabled veterans and members of other minority groups. The lawsuit seeks a temporary restraining order barring the state from issuing further licenses under the Conditional Adult-Use Retail Dispensary (CAURD) program, which have been reserved for applicants with a marijuana-related criminal conviction.

The MRTA included provisions that set a goal of awarding at least half of the state’s recreational marijuana dispensaries to social and economic equity applicants. Under an initiative spearheaded by New York Governor Kathy Hochul last year, the state’s first licenses for retail cannabis shops have been reserved for “individuals most impacted by the unjust enforcement of the prohibition of cannabis or nonprofit organizations whose services include support for the formerly incarcerated.” 

To be eligible for a CAURD license, applicants are required to either have had a cannabis conviction or be the family member of someone with a cannabis conviction, among other criteria. Nonprofits with a history of serving formerly incarcerated or currently incarcerated individuals were eligible to apply for a CAURD license. So far, the OCM has issued 463 CAURD licenses, although less than two dozen dispensaries have opened across the state so far.

“The MRTA had already established a goal to award 50% of all adult-use licenses to social and economic equity applicants. But instead of following the law, OCM and CCB created their own version of ‘social equity’ and determined for themselves which individuals would get priority to enter New York’s nascent adult-use cannabis market,” reads a statement on behalf of the veterans bringing the legal action.

Lawsuit Argues OCM Rules Unconstitutional

The lawsuit was filed by four U.S. veterans who have served a combined more than two decades in various branches of the military. They argue that restricting retail licenses to those with cannabis convictions was not approved by the legislature and violates the state Constitution.

“It’s out of character for a veteran to sue the state to uphold a law,” William Norgard, one of the plaintiffs in the case and a U.S. Army veteran, said in a statement quoted by the Olean Times Herald. “We take oaths to defend the laws of our nation, and trust — maybe naively — that government officials will faithfully and legally execute those laws. What the Office of Cannabis Management is doing right now is in complete breach of that trust. As veterans, we know that someone has to hold the line.”

“Service-disabled veterans are the only social equity group in the law not born into priority status, but a group to which anyone could belong,” said Carmine Fiore, who served eight years in the U.S. Army and New York Army National Guard and is also one of the four plaintiffs in the case. “We are also the only priority group in the (law) that achieved its status by helping communities.” 

“It feels like we were used to get a law passed — a good law, one that helps a lot of people, as well as the state,” Fiore added. “Then, once it was passed, we were cast aside for another agenda.”

The other plaintiffs are Steve Mejia and Dominic Spaccio, who both served six years in the U.S. Air Force.

Lucas McCann, co-founder and chief scientific officer at cannabis compliance consulting firm CannDelta Inc., notes that there is no mention of the CAURD program in the MRTA. When the program was created, the definition of social equity was defined to exclusively include those with previous cannabis-related convictions and previous business experience. But a broader definition of social equity may be appropriate, and future rounds of licensing could include members of other groups, McCann says.

“The grievances brought forward by the four military veterans highlight another facet of the ‘social equity’ conversation that cannot be ignored. Veterans, particularly disabled ones, face their own set of challenges and hurdles,” he wrote in an email. “Their dedicated service to the nation warrants recognition and inclusion in the emerging industry, especially when considering the potential therapeutic benefits of cannabis for a myriad of health issues commonly faced by veterans.”

Michelle Bodian, a partner at the leading cannabis and psychedelics law firm Vicente LLP, said that is too early to determine how the lawsuit will affect the continuing rollout of New York’s regulated marijuana industry. 

“There is always a chance the lawsuit will succeed, and the CAURD program will be halted; however, it’s equally as likely the state will settle with the plaintiffs and award them a license,” Bodian said in a statement to High Times. “As the TRO hearing is scheduled for later this week, we should know in short order whether the CAURD program is frozen in place or whether new provisional or final licenses can be awarded.”

When asked about the legal action, an OCM spokesperson told local media outlets that the agency does not comment on pending litigation.

The post Military Veterans File Suit Against New York’s Cannabis Licensing Rules appeared first on High Times.

Colorado’s Cannabis Party Buses Keep Chugging Along

August 1, 2023 Published by

Meet Colorado’s latest cannabis entrepreneurs: bus drivers. 

Earlier this year, the state began doling out licenses to businesses providing 4/20-friendly bus tours. 

The first business to receive such a business, Cannabis Experience, hit the road in early March in Denver.

Local news station Denver7 reported at the time that the Denver Department of Excise and Licenses, which issued the license, “believes it may be the first and only licensed mobile marijuana hospitality establishment in the nation.”

The company’s CEO, Sarah Woodson, explained to the station how the business would operate:

“There are several rules guests must follow. Woodson says IDs will be checked, and safe consumption information will be shared before the tour begins. Guests will be allowed to smoke on the bus, but marijuana won’t be sold during the ride. Non-alcoholic beverages and food will also be available for guests to enjoy. As far as tours go, Woodson says there will be a variety of options, including airport pickup and drop-off.”

Riders have to bring their own weed to Cannabis Experience, but if they’re dry, the drivers will bring them to local dispensaries. 

According to the Denver Post, cannabis bus tour companies must comply with a bevy of local regulations.

“Denver requires marijuana buses have a GPS tracking system and ventilation that prevents second-hand smoke from reaching the driver. They are also required to submit pre-planned driving routes as well as timely updates if the routes change. That’s one reason The Cannabis Experience will start by picking up and dropping off airport travelers, as well as two of its tours, at Union Station,” the newspaper reported.

“Because we’re first, there’s going to be a learning curve on how everything is going to work as smoothly as possible,” Woodson told the Denver Post.

Other entrepreneurs have gotten in on the act, seeking licenses from local retailers. 

Local station 9NEWS reported last month that three other businesses “have applied for the city’s new marijuana mobile hospitality license, which allows people to legally smoke weed while riding a bus.”

The station noted that Denver has made such licenses available only to “social equity” applicants who must meet one of the following requirements: “The applicant resided for at least 15 years between 1980 and 2010 in certain neighborhoods”; “The applicant or applicant’s family member was arrested for a marijuana offense, convicted of a marijuana offense, or was subject to a civil asset forfeiture related to a marijuana investigation”; “The applicant’s household income in the previous year was less than 50% of the state median income for that household size.”

While businesses like Cannabis Experience represent the first state-licensed companies of their kind, there have been other unregulated weed-friendly bus tours in Colorado before.

As the Denver Post noted, such businesses began to surface when recreational pot sales began a decade ago.

“In 2018, for example, undercover cops raided local marijuana tour buses and cited many customers and employees for participating in unlawful activities. At the time, ironically, city regulators were considering legalizing the business model,” the Post said. “The conundrum highlighted a gap in Colorado’s then-newly minted marijuana market: Locals and visitors had a plethora of places where they could legally buy products, but nowhere except a private residence they could legally consume.”

The newspaper continued: “That’s why, in 2019, state regulators developed the marijuana hospitality license, which allowed for a new type of business where patrons could smoke, eat or vape cannabis onsite. Hospitality establishments have been slow to get off the ground, however, as municipalities need to opt in to allow them. The first chance cities had to do so was Jan. 1, 2020, but because of the COVID-19 pandemic, few did so immediately. Denver didn’t open applications until November 2021.”

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New Cannabis Consumption Lounge License Approved in Nevada

July 31, 2023 Published by

With the debut of The Sphere in Las Vegas, Nevada and the growing updates for entertainment and tourism, officials are slowly moving forward with consumption lounge license approval. On July 25, the Nevada Cannabis Compliance Board (CCB) approved the state’s first conditional license for a stand-alone cannabis consumption lounge.

The first winning license belongs to LA Lounge LLC, which is the first independent company that’s not connected to a dispensary. According to KTNV Las Vegas, the owners don’t have a location picked out yet, but once they do it will need to be inspected by the CCB before beginning operation. Once a business receives a license, they have one year to get things up and running.

The first round of consumption lounge licenses were approved in June, which included Planet 13 and Thrive Cannabis Marketplace in Clark County, and The Venue at SoL Cannabis in Washoe County. These businesses could see their consumption lounges open up by the end of 2023, if they receive final approval from the CCB. “We get asked about it daily by most customers,” said David Farris, Vice President of Sales and Marketing with Planet 13.

Recently, CCB Executive Director Tyler Klimas confirmed that things are progressing well. “It sounds like we will likely see some consumption lounges open by the end of the year, maybe some as soon as October,” Klimas said, according to KTNV Las Vegas. At the most recent meeting, the CCB also adopted new regulations for air ventilation requirements that are supposed to make it easier for applicants to comply with.

Another prospective license owner, Chandler Cooks, attended the July 25 meeting. He told KTNV Las Vegas that he plans to open a lounge called Moulin Noir in downtown Las Vegas. “We already submitted everything that is required of us, so we are hoping to be at the next CCB meeting and get the conditional license,” Cooks said. “Ideally, we would like to be open by January. We want to beat the curve for Super Bowl.” The next CCB meeting will be held on August 22 for more potential licenses to be granted. 

Consumption lounges were approved in June 2022. Prior to that, visitors and residents could only consume cannabis within a private residence. Forty conditional licenses were approved last fall. “We will do sit down interviews and make sure we understand their ownership structure and their business plan and then they will come in front of the board and the board will determine them suitable or not to proceed to perfecting their license,” Klimas said at the time. 

The Las Vegas Convention and Visitors Authority reported in January that 38.8 million people visited Las Vegas in 2022. While the state of Nevada stands to benefit greatly from its consumption lounges, other states have also been progressing with public consumption locations as well.

In California, consumption lounges are in full swing in places like San Francisco, which has a rich history with lounges during its early medical cannabis era. Alaska adopted early rules for consumption lounges in 2018, and the first one opened in 2021. Colorado started accepting license applications back in 2021, and so far there are a few private lounges that are currently available. 

Other states such as Massachusetts have approved social consumption programs but have not yet finalized plans. Most recently in June and July, the Massachusetts Cannabis Control Commission (CCC) held listening sessions for social consumption “to hear from stakeholders prior to drafting new policies. After draft regulations are prepared and published, there will be notice of a formal public comment period as an opportunity to provide additional feedback.”

In May, Massachusetts Gaming Commissioner Bruce Stebbins explained that the state’s pilot program would be “burdensome and expensive” and the CCC scrapped it in favor of a more streamlined process.

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New York Approves New Retail Licenses, Cannabis Farmers Markets

July 21, 2023 Published by

New York cannabis regulators this week approved more than 200 additional retail dispensary licenses and adopted new rules that will allow cannabis growers to sell directly to consumers at farmers markets. Characterizing the moves as “bold actions to swiftly grow the state’s legal cannabis market,” the New York State Cannabis Control Board (CCB) and the Office of Cannabis Management (OCM) announced the developments on Wednesday in a bid to shore up the state’s licensed marijuana operators.

At a meeting on July 19, the board approved 212 additional Conditional Adult Retail Dispensary (CAURD) licenses, bringing the total number issued to 463. Under an initiative spearheaded by New York Governor Kathy Hochul, the state’s first licenses for retail weed shops have been reserved for “individuals most impacted by the unjust enforcement of the prohibition of cannabis or nonprofit organizations whose services include support for the formerly incarcerated.”

“The provisional approval of today’s 212 CAURD licenses by the Cannabis Control Board marks a momentous leap forward in our pursuit of an inclusive and fair cannabis industry,” Cannabis Control Board chair Tremaine Wright said in a statement from the OCM on Wednesday. “These licensees are demonstrative of the innovation and diversity of New York state.”

The board noted that it will continue to review additional CAURD license applications for consideration on a rolling basis. To be eligible for a CAURD license, applicants were required to either have had a cannabis conviction or be the family member of someone with a cannabis conviction, among other criteria. Nonprofits with a history of serving formerly incarcerated or currently incarcerated individuals were eligible to apply for a CAURD license.

Although nearly 500 CAURD licenses have now been issued, only 20 retail dispensaries have opened and begun serving customers. The first shop opened in the closing days of 2022, fulfilling Hochul’s promise to launch the regulated cannabis market before the end of the year. But since then, only 19 more dispensaries have opened, the most recent on Tuesday in Buffalo.

Board Approves Cannabis Farmers Markets

The slow rollout of retail dispensaries has left New York’s cannabis growers with a glut of regulated cannabis while allowing the illicit market to flourish. In a bid to prop up the licensed cultivators, on Wednesday the CCB also approved new rules to allow for farmers markets known as Cannabis Grower Showcases (CGS). Under the initiative, growers will be permitted to partner with conditional adult-use retailers and processors to organize events for showcasing New York brands and selling adult-use cannabis products to consumers.

Damian Fagon, the OCM’s chief equity officer, said that his experience as a former New York hemp farmer has given him a firsthand look at “how devastating it can be when a hard-fought harvest struggles to get to market.” 

“The Cannabis Growers Showcase was informed by those lived experiences, as well as by many difficult conversations with our growers and processors who justifiably wanted more avenues to share their products with New Yorkers,” said Fagon. “This initiative will not only increase sales and retail access throughout the state, but it will also connect New York consumers directly with local cannabis farmers and homegrown brands.”

Under the initiative, each CGS event will feature a minimum of three licensed cultivators partnering with a licensed adult-use dispensary to sell regulated cannabis products to consumers. CGS events will only be allowed in cities and towns that allow for retail cannabis sales and must have a predominantly adult population. Only New Yorkers aged 21 and over will be permitted to purchase cannabis and cannabis products. 

Additionally, one processor will also be able to sell cannabis products such as edibles, beverages and vape cartridges for every three cultivators. To ensure compliance and adherence to regulations, CGS participants are required to obtain municipal approval unless the event is held at a licensed retail dispensary where cannabis sales typically occur.

Michelle Bodian, a partner at the leading cannabis and psychedelic law firm Vicente LLP, welcomed the new licenses and rules to allow for cannabis farmers markets. But she is unsure if the moves will be sufficient to secure the success of New York’s regulated cannabis market. 

“More licenses and more sales opportunities are great ideas, but until we see the details, it’s unclear whether these actions will be enough by themselves to propel the licensed cannabis industry forward,” Bodian wrote in an email to High Times. “These opportunities are also only temporary and each stage of the supply chain needs permanent solutions so they have consistent cash flows in order to have a hope of being profitable.”

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NY State Senator Urges Aggressive Action on Unlicensed Cannabis Shops

July 19, 2023 Published by

A New York state senator wrote a letter to the state’s Office of Cannabis Management, urging leadership to engage in “aggressive action” on unlicensed cannabis retailers after witnessing them in his own neighborhood.

State Senator Brad Hoylman-Sigal, chair of the Senate Judiciary Committee, and representing New York’s 47th State Senate District on Manhattan’s West Side, is tired of unlicensed cannabis stores and dispensaries popping up across town.

Hoylman-Sigal wrote a public letter on July 17, addressed to Office of Cannabis Management Executive Director Christopher Alexander and Tremaine Wright, chair of the Cannabis Control Board, urging action immediately.

“In the 2023 budget, the New York State Legislature granted additional authority to the Office of Cannabis Management (OCM) and the Department of Taxation and Finance (DTF) to address unlicensed cannabis stores,” Hoylman-Sigal wrote. “This includes conducting inspections, imposing civil penalties, and seeking injunctions to shut down stores. I am grateful to see OCM and DTF begin to take action. Given the serious issues caused by these stores, I urge OCM and DTF to continue to act quickly and aggressively to shut down these unlicensed stores.”

Hoylman-Sigal addressed the severity of the issue, including stores dotting Manhattan. 

“The scale of these unlicensed stores is staggering, with over 100 stores identified in Hell’s Kitchen alone. As I have expressed previously, these stores are deceptive to consumers, hazardous to public health, cheating on their taxes, undermining the State’s equity-based and legal cannabis rollout, and have little incentive to inspect IDs to ensure they are not selling to minors. Additionally, because these stores are unregulated and have little oversight, they pose a danger to employees and neighbors.”

Hoylman-Sigal went a step further to name dispensaries that are either unlicensed or have received complaints.

“I am enclosing a list of stores which have been reported to us by constituents as well as a list of unlicensed stores in Hell’s Kitchen compiled by the Hell’s Kitchen Neighborhood Coalition. I urge OCM to act expeditiously to shut down these stores.”  

New York Takes Action on the Proliferation of Unlicensed Cannabis Shops

New York Gov. Kathy Hochul is also ramping up efforts to tackle the illegal dispensary situation.

New York State Office of Cannabis Management and Department of Taxation and Finance began inspections of unlicensed shops in early June under a new law signed by Gov. Hochul a month prior in May.

The new law signed by the Governor in May is part of the State’s Fiscal Year 2024 Budget. The beefed up penalties include fines of up to $20,000 per day, used to discourage illegal activity.

“Under new powers that I fought for in this year’s State budget, we can now conduct enforcement against businesses illegally selling cannabis, and I’m proud to report that in just the first three weeks of our efforts, we’ve seized nearly $11 million worth of illicit products off the streets,” Governor Hochul said. “These unlicensed businesses violate our laws, put public health at risk, and undermine the legal cannabis market, and with the powerful new tools in our toolbelt we’re sending a clear and strong message: if you sell illegal cannabis in New York, you will be caught and you will be stopped.”

The New York City Council is also stepping in. At a meeting of the New York City Council last January, officials pledged increased enforcement against unlicensed cannabis retailers and said that the state legislature is drafting new legislation to give law enforcement additional powers to shut down illicit pot shops. For the time being, unlicensed stores are easy to find in the state.

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