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Shroom Shop Raided in Ontario, Canada

August 22, 2023 Published by

Another location of a psilocybin mushroom dispensary chain in Canada was raided by police, about a month after its earlier location was raided. Psilocybin advocates in Canada remain undeterred however, with no plans to back down.

CTV News in London reports that on Aug. 17, St. Thomas Police Service (STPS) officers in Ontario in Canada executed a warrant on the FunGuyz (pronounced fungi’s) magic mushroom shop. It was not their first rodeo with law enforcement raids.

STPS released a press release on Aug. 18. “A 39-year-old London resident has been arrested after a swift response from the St. Thomas Police Service (STPS)  regarding community concerns about the open sale of psilocybin, commonly known as magic mushrooms, at a newly opened business in the city.”

The store sold products like psilocybin-infused edibles and microdoses of mushrooms. At other FunGuyz locations, for instance, shrooms were sold in 7-, 14-, or 28-gram bags of dried mushrooms labeled by the strains Golden Teachers, Blue Meanies, African Pyramid, Amazonian, Penis Envy, and so on. Microdose psilocybin options for most of the strains of shrooms are available as well in 50, 100, or 200 micrograms. They also sell psilocybin-infused gummies, chocolate, tea, and other products.

“Our street crimes unit did arrest a 39-year-old London resident with possession of a controlled substance for trafficking purposes,” said STPS Corporate Communications Director Samantha Wakefield. “The individual was an employee of the establishment here.”

STPS officers said neighborhood community members raised concerns, however the police were already aware of the operation.

Local reports indicate that FunGuyz locations have played cat and mouse with law enforcement, frequently reopening for business. It’s the second location in two months to be targeted. Police at the St. Thomas raid identified various strains of mushrooms inside the store and seized 7,150 grams of psilocybin with an estimated street value of $71,504.

The owner, who wished to remain anonymous, told CTV News, “We like charges because we’re just going to do a constitutional challenge with everyone that gets charged.”

FunGuyz vs. Canadian Police

Locations in other provinces also face closure thanks to ongoing law enforcement actions. A FunGuyz location in Montreal, Quebec was raided by police last July.

CTV News reported that several police officers descended on the FunGuyz shop hours after the company opened their first location in the province of Quebec in Montreal’s Sainte-Marie district. The shop was raided during its opening day, so day one of sales was likely not a secret. Four people were arrested, police say, and their investigation into the shroom dispensary is ongoing.

“We’re just getting started and we hope that the word gets out,” Edgar Gorbans told CTV News Windsor. As of July, FunGuyz runs 11 other stores in Ontario, plans to open more in Quebec, and has locations close to Detroit, Michigan.

“We’re dealing with people in active addiction who have very little in the way of impulse control, have very little in their ability to say no,” said Director Don Trepanier. “When we have uncontrolled access to these substances, then it becomes a problem.”

The Transformation of Psilocybin in Canada

Psilocybin is prohibited in Canada under the Controlled Drugs and Substances Act (CDSA). The drug has been an illegal controlled substance since 1975. Despite the status of psilocybin, the government concedes that medical properties probably do exist.

Canada’s former health minister used her authority to grant a limited number of legal exemptions for psilocybin, but that was mainly only given to people with terminal illness and treatment-resistant depression.

“There is increasing interest in the potential therapeutic uses of magic mushrooms and of psilocybin, one of the active ingredients in magic mushrooms,” the Government of Canada states. “While clinical trials with psilocybin have shown promising results, at this time, there are no approved therapeutic products containing psilocybin in Canada or elsewhere. Clinical trials are the most appropriate and effective way to advance research with unapproved drugs such as psilocybin while protecting the health and safety of patients.”

The production, sale, and possession of psilocybin remains illegal in Canada. There are over 200 species of psilocybin mushrooms, and officials don’t want people taking the risk into their own hands, given that similar varieties are potentially poisonous.

Store operators, however, often don’t care and commonly open up shop in broad daylight anyways. Advocates in Canada have been pushing the envelope with psilocybin dispensaries operating in the gray area. Canadian advocate Dana Larsen, for instance, opened up an online psilocybin dispensary and storefront locations, four in Vancouver at one point.

Psilocybin mushrooms are being studied for the treatment of depression, obsessive-compulsive disorder, trauma, alcoholism, irritable bowel syndrome, and other medical conditions. There are efforts to decriminalize psilocybin and other psychedelics in Colorado, Washington, Massachusetts, and cities throughout California. Many people visit the dispensaries to get microdoses to treat various conditions.

The post Shroom Shop Raided in Ontario, Canada appeared first on High Times.

Michigan Cannabis Sales Hit Record High, Profits Another Story

August 21, 2023 Published by

According to the most recent monthly report from the Michigan Cannabis Regulatory Agency, Michigan cannabis sales reached a record in July, recording $276 million in sales, with the lion’s share of sales coming from adult-use cannabis. Local cannabis businesses say they aren’t making much in profits, however.

The state will likely surpass the $3 billion mark in revenue for the first time in 2023. It reinforces the importance of the state’s cannabis market. If the trend continues, Michigan will become the second largest market in the nation after California. 

But insiders say making a profit in this industry is an entirely different scenario, nearly impossible for businesses following the rules. In addition, the constant flow of new licenses is increasing competition to unworkable levels.

“It’s kind of a race to the bottom, as they call it,” Beau Whitney, senior economist for the National Cannabis Industry Association, told Bridge Michigan. “Prices are going down, down and down because there’s so much competition, but at some point, prices won’t be able to go down any further.” 

Some locals say the current system won’t work for long under the current circumstances.

“I think that big corporate stores thought they could throw money at this and just keep throwing money at it, and it would work and it’s not working. That’s why most of your major dispensaries … are for sale,” said Jerry Millen, owner of The Greenhouse, a dispensary located in Walled Lake.

The incoming flow of new licenses doesn’t seem to be helping existing businesses much. During the past month, Michigan received 97 applications for adult-use use licenses, and issued 87 new licenses. Seventeen of the licenses were designated for class C growers, with a limit of up to 1,500 plants, per state regulations. 

A 10% excise tax was imposed on retailers in addition to a 6% sales tax after adult-use was legalized in Michigan in 2018. Thanks to high production costs and oversaturation of the market, consumers are happy but businesses are not. 

That average price of $99 for one ounce of adult-use cannabis is much cheaper than it was this time last year. The price for an ounce of medical cannabis is only slightly higher. 

A Boon for the Michigan Economy

While small businesses aren’t likely making much profit, local governments, however, are loving it. Tens of millions of dollars in revenue are being allocated to local governments across Michigan as a result of the state’s adult-use cannabis industry. 

According to FOX 2 Detroit, “Only 30% of total adult-use sales go to local governments, with the other 70% going to schools and roads. When contributions from last year are paired next to figures from 2021 and 2020, they show an industry that shows no signs of slowing down.”

Michigan voters legalized adult-use cannabis in 2018, when they approved Proposal 1, which made it legal for adults 21 and older to consume cannabis, and paved the way for a regulated cannabis market that launched in 2019. 

But despite strong sales numbers, Michigan, like other regulated cannabis markets, has become oversupplied with pot.

Illegal cannabis sales continue to thrive in the state, and Michigan regulators are taking action. Last October, The Detroit News reported that Brian Hanna, the acting director of the Michigan Cannabis Regulatory Agency, told assembled media that “the agency is planning actions that will expose bad actors and serve as a warning to other regulated businesses.”

The post Michigan Cannabis Sales Hit Record High, Profits Another Story appeared first on High Times.

Fresno, California Locals Block Cannabis Store from Opening

August 18, 2023 Published by

After bending over backwards to meet the criteria for compliance, residents in Pinedale, a neighborhood of Fresno, California, rallied in Fresno City Hall to appeal a permit and demand officials shut down a proposed adult-use retail cannabis location from opening.

Residents appealed Embarc’s Cannabis Conditional Use Permit (CUP) for a proposed location at a Fresno Planning Commission meeting on August 16. The stigma surrounding cannabis lingers in many smaller communities throughout California.

Embarc CEO Lauren Carpenter led a proposal to open a dispensary at 7363 N. Blackstone Ave., home to about 15 other retailers, and had met requirements to maintain a 1,000-foot distance from Pinedale Elementary School, per local regulations. The store also met necessary security regulations and metro city requirements for parking.

Residents still complained however, saying the smell of pot would fill the nearby shopping center, and that armed guards would be a nuisance. The dispensary’s 1,000-foot distance from the school—meeting local compliance regulations—was still too close to impressionable school children.

Community group Pinedale Matters and Clovis Unified School District wrote letters demanding the proposal be shut down. The effort to appeal the permit worked.

“Embarc was issued every regulation, every ordinance, every code—everything that would be required of this business in order to be in compliance,” Carpenter tells High Times. “Twenty-six regulatory agencies all found us in total compliance. We are required by the issuance of our license to operate in district two, including the location that was vetted by the agencies and county departments.”

“Our business model is predicated on spending weeks, months, and years engaging with community members who are in support, and in opposition to cannabis,” Carpenter continues.

Planning Commission member Monica Diaz told GV Wire that store owners had done everything to meet the criteria set by the city of Fresno to open a dispensary. “She has covered everything, there’s nothing that anybody can come and say that she’s not doing,” Diaz said of Carpenter.

Since two Pinedale residents appealed Embarc’s CUP, representatives were forced to go before the Planning Commission.

“Fear is a far more powerful motivator than fact,” Carpenter says. “I think it was shocking to see a planning commission, by their own admission, [deny a business that was] fully compliant with the process that our city created. Commissioners acknowledge that.” 

Others disagreed and believed regulated dispensaries are safe, however. Five Pinedale residents spoke in favor of Embarc, saying that the store would actually make the neighborhood safer. The United Food & Commercial Workers (UFCW) union also spoke in favor of Embarc.

The meeting lasted until 9:55 p.m., with the Planning Commission’s time running out. Planning Commission members unanimously agreed to deny the permit, calling the location a “detriment” to the neighborhood. Planning Commission member Haley Wagner was not present at the meeting.

Fresno and Adult-Use Cannabis

The city has been slow to rollout adult-use cannabis retail locations. In March, Fresno faced a budget shortfall of over $3 million, partly due to the slow pace of cannabis dispensary openings in the city.

Embarc and The Artist Tree opened in the Fresno area on the same day in July 2022. The remaining businesses awarded preliminary licenses have submitted their applications for CUPs which must be approved before building permits are issued and construction or renovations of the site can begin.

Proposition 64 legalized cannabis for adult use in California in 2016. In 2018, Fresno voters approved an ordinance to tax retail sales of recreational cannabis, paving the way for adult-use cannabis dispensaries to open in the city. 

In 2019, the Fresno City Council amended civic ordinances to regulate recreational cannabis, and in 2021 the city began awarding the first of 19 preliminary retail cannabis dispensary licenses issued to date.

Officials in Fresno considered several jurisdictions for possible solutions to the city’s slow rollout of adult-use shops and are considering several options to expedite the opening of additional retailers in the city. 

Pinedale used to be an unincorporated town in Fresno County, but has since become surrounded and annexed by the City of Fresno.

The post Fresno, California Locals Block Cannabis Store from Opening appeared first on High Times.

Organizers Hope To Raise Funds for Flooded Vermont Cannabis Pot Shops

August 17, 2023 Published by

“Historic” flooding in Vermont is causing an unprecedented number of landslides in the state, impacting businesses including those in the cannabis industry. After Vermont cannabis businesses were denied federal assistance, local trade organization, Cannabis Retailers Association of Vermont, and local festival Higher Calling plan to raise funds.

Summer flooding wreaked havoc upon the state of Vermont over the summer months. It’s probably not the last of flooding the state is in for: “I don’t want to be alarmist, but I also want to be realistic,” Ben DeJong, the state geologist told VTDigger. “This could be something we deal with again.”

Even with provisions that work in other industries, such as federal crop insurance, cannabis businesses often are left out of those programs. Although Vermont Gov. Phil Scott asked the U.S. Department of Agriculture disaster declaration, it still would not allow affected cannabis farmers to receive federal crop insurance, according to a USDA Farm Service Agency executive director. 

“Because we are a federal agency, we have to follow federal law,” said Small Business administration public information officer, Carl Dombek. “Cannabis is not legal under federal law, and therefore we are not able to lend to cannabis dispensaries.”

Forbins Finest in Barre was among the cannabis stores that were impacted. “The water came in pretty hard, pretty fast,” said Angela Payette, co-owner of Forbin’s Reserve, Inc. 

“To get right back into action, get back open so that people can have just a little bit of relief in some tough times,” said Brandon Marshall, the other co-owner of Forbin’s Reserve, Inc. However, Forbins Finest was able to reopen, while others were not, such as Capital Cannabis.

“The North Branch River was cresting over and immediately flooded the back parking lot as we were pulling out and we haven’t been able to move back in since,” said Lauren Andrews, who owns Capital Cannabis in Montpelier. Capital Cannabis was relocated to the Central Vermont Marketplace in Berlin.

Higher Calling

To lend a helping hand, the Cannabis Retailers Association of Vermont is selling tickets to Higher Calling, a two-day music festival in Cabot, and providing a portion of proceeds to flood victims. Organizers hope to sell 1,500 tickets for Higher Calling. The festival takes place on Sept. 15 and 16 in Cabot, Vermont, at Pransky Farm.

Organizers say that all the proceeds going beyond the festival expenses will go towards flood victims in the industry. “Any money that we make from sponsorships that exceeds the expense of the festival, 100% of those funds will go into the fund to support cannabis businesses,” said Todd Bailey, the executive director of the Cannabis Retailers Association of Vermont.

Planning for the festival began months ago, The Cannabis Retailers Association of Vermont said. But they quickly shifted focus to transform the festival into a fundraising effort once the severity of flooding became more apparent. 

Barre, Vermont was one of the cities most impacted by flooding. Landslides took out houses, powerlines, and infrastructure. Debris litters the streets. It was bad enough that they renamed the state’s annual Green Up Day, Flood Recovery Clean Up Day, which will take place on Saturday, August 26. The idea is to clean up roadsides, rivers, parks, and other areas hit hardest by the recent wave of widespread flooding.

The day is meant to “keep Vermont the clean and beautiful place we know and love, as we welcome visitors to support our economy and communities,” Gov. Phil Scott said during a press conference on Tuesday.

The post Organizers Hope To Raise Funds for Flooded Vermont Cannabis Pot Shops 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 Hampshire Commission To Study Cannabis Legalization

August 14, 2023 Published by

New Hampshire Governor Chris Sununu last week signed legislation to create a commission to study legalizing recreational marijuana via a plan that restricts adult-use cannabis sales to state-run retailers.

Previously opposed to legalizing recreational marijuana, Sununu changed his position earlier this year after an adult-use cannabis legalization bill failed in the New Hampshire Senate after receiving approval from the state House of Representatives. 

“Knowing that a majority of our residents support legalization, it is reasonable to assume change is inevitable. To ignore this reality would be shortsighted and harmful,” Sununu wrote in a statement in May. “That is why, with the right policy and framework in place, I stand ready to sign a legalization bill that puts the State of NH in the driver’s seat, focusing on harm reduction  —  not profits. Similar to our Liquor sales, this path helps to keep substances away from kids by ensuring the State of New Hampshire retains control of marketing, sales, and distribution  —  eliminating any need for additional taxes.”

Sununu said that he would sign a recreational marijuana legalization bill if it included provisions to make state-run shops the only retail outlets for adult-use cannabis purchases. New Hampshire uses a similar system for spirits sales, with the state’s 67 Liquor and Wine Outlet stores being the sole retailer of hard alcohol in the state. The governor added that he would not approve an adult-use cannabis legalization bill that did not include such a state-run model for retail sales of recreational weed.

“I am supportive of legalizing marijuana in the right way – with this legislature – rather than risk a poorly thought out framework that inevitably could pass under future governors or legislatures,” Sununu said. “Should the legislature pass future legalization bills without these provisions in place, they will be vetoed.”

New Commission Will Study Cannabis Legalization

The measure passed last week, House Bill 611, establishes a commission to study legalizing recreational marijuana in New Hampshire. The legislation tasks the study commission with examining a number of issues and policy proposals, including how the state should approach cannabis sales and marketing, keeping marijuana products away from young people and preventing oversaturation of weed shops in local communities. The commission will also explore ways to allow local governments to ban or limit state-run cannabis retailers in their jurisdictions.

The new commission will meet through the summer and fall months to study and develop a model that allows the state to control the distribution and sales of adult-use cannabis. The commission’s findings and recommendations must be submitted in a report by December 1.

New Hampshire’s 18-member cannabis legalization study commission will include five senators, five members of the House of Representatives and representatives of the Attorney General’s Office, the Governor’s Office, the New Hampshire Association of Chiefs of Police, the New Hampshire Bankers Association, the New Hampshire Liquor Commission, the American Civil Liberties Union, the New Hampshire Medical Society and Communities for Alcohol and Drug-Free Youth. Additionally, the commission will be required to consult with the state’s Alternative Treatment Centers, which currently dispense therapeutic medical marijuana in the state, and the New Hampshire Cannabis Association, an industry group that has advocated for legalization.

If the commission succeeds and is able to submit recommendations that result in a successful cannabis legalization bill, New Hampshire, the only state in New England that has not legalized recreational marijuana, will join the 23 states that have legalized marijuana for adult use. Democratic state Representative Wendy Thomas, a sponsor of House Bill 611 and a medical marijuana patient, said that she hopes to be appointed to the state’s cannabis legalization commission. 

“All of the states who have legalized cannabis are getting all of our money,” Thomas told New Hampshire Public Radio on Wednesday. “We’re just throwing money away that could help our state.”

In order to be approved by Sununu, the commission’s recommendations will have to be developed into a bill that can be passed by the legislature during the 2024 legislative session. Sununu has said he will not run for re-election in 2024, making next year the last opportunity for the governor to sign a legalization bill into law. 

Critics of Sununu’s plan say it will establish a state-run monopoly on cannabis sales that restricts the power of growers to set their own prices. Others say the state-run approach limits opportunities for members of communities disproportionately impacted by decades of cannabis prohibition.

House Bill 611 also includes provisions to ease restrictions on the use of medical marijuana, which was legalized in New Hampshire in 2013, by patients with chronic pain. Under the previous regulations, patients could only receive a recommendation to use medical cannabis for chronic pain if they had first tried other options without success. The new law eliminates that restriction, effective on October 8, and allows patients to receive a medical marijuana recommendation without trying other, potentially more dangerous, options such as opioids.

The post New Hampshire Commission To Study Cannabis Legalization appeared first on High Times.

Hot Hemp and Delta-8 Products in Virginia Lead to ‘Aggressive’ Fines

August 14, 2023 Published by

Virginia’s new stricter rules took effect, notably aimed at delta-8 THC sellers, leading to a round of warning letters sent out to retailers who were caught selling products out of compliance. Copycat treats, delta-8 THC products, and others were flagged.

The Virginia Department of Agriculture and Consumer Services (VDACS) sent five noncompliance letters out on July 24, dishing out penalties ranging from $13,000 to $97,500.

Various violations were outlined in the letters with subsequent fines. “If the same violations are cited in a future inspection, the assessed civil penalties will increase,” VDACS said in the letters. However, the business owners will have an opportunity to pay a reduced fine of $10,000 if they agree to bring their stores into compliance and meet other conditions.

The move follows a new civil penalty structure that took effect July 1. Chapters 744 and 794 of the 2023 Acts of Assembly were amended to tackle D8 products and hot hemp.

“Effective July 1, 2023,” the rule reads. “When offered for retail sale, a hemp product may not exceed 0.3 percent total tetrahydrocannabinol (THC) and may not have more than two milligrams of total THC per package unless the product’s cannabidiol (CBD) to THC ratio is at least 25 parts CBD for every one part THC. Total THC means all of the THC in a product, including delta-8 THC, delta-9 THC, and other THC isomers.”

Virginia Mercury reports that the largest fine to date was sent to a retailer located in Gate City in southwest Virginia, called Tobacco Discount. Thirty-six impermissible products were found by the VDACS, and inspectors said they found 27 had a concentration of intoxicating THC above the 0.3% legal limit. 

“This is just going way over the top, as we warned everyone,” Jason Amatucci, president of the Virginia Hemp Coalition, told Virginia Mercury. “They’re fining people and they’re being very aggressive about it.”

Others contained hemp-derived forms of THC or had labels displaying a “significant likeness” to mainstream snacks, particularly cereal bars with names like “Lucky Marshmellow” and “Berry Crunch.” 

Many of the products tested were gummies and cereal bars labeled as containing delta-8, a hemp-derived compound that can produce a high similar to marijuana.

Hemp Businesses Pull Out of Virginia

The latest round of letters and fines is pushing some hemp businesses in the state over the edge, prompting them to leave Virginia.

Redfern Market, one of those businesses, is a 10-employee hemp nursery and retail store in Caroline County, Virginia. 

“I guess I’ll have to go to North Carolina,” the owner of Redfern Market told Richmond Magazine. “We sell everything from dog treats to creams to gummies and chocolates. We have an array of products for different purposes, many for medicinal and wellness purposes, but 90% will have to be gone.”

Jason Amatucci of the Virginia Hemp Coalition agreed and described regulators as trying to shut down the state’s hemp industry. “They are trying to scare us and shut the industry down,” Amatucci said. “A lot of businesses are telling me that they’ve had enough, why operate in a state that treats you like trash?”

Virginia became the first in the South to legalize pot, and the 2018 Farm Bill opened the door for hemp, but critics say that Gov. Glenn Youngkin isn’t making things easy for the hemp industry. “It was very hard to communicate with the governor’s office when Youngkin came in. I couldn’t get a meeting with the lieutenant governor to talk with her about the industry. It was very hard,”  Amatucci said. “They just started coming after us.”

The post Hot Hemp and Delta-8 Products in Virginia Lead to ‘Aggressive’ Fines 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.

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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.

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Illinois Cannabis Among Most Expensive Weed in America

August 2, 2023 Published by

If you’re facing sticker shock in Illinois, you’re not alone and your suspicions have been confirmed: Illinois ranked among the states with the most expensive retail cannabis markets in America, according to a new report by Headset.

During the first six months of 2023, Illinois sold over $950 million in total cannabis sales, making Illinois home to the third largest cannabis market in the U.S., with only California and Michigan with larger markets. Population-wise, Illinois is the sixth largest state in the country, however a limited number of brands pose several challenges to the state.

The report, “A Deep Dive into the Illinois Cannabis Market,” is designed to examine the state’s cannabis market with analytical data on thousands of products to determine how it compares to other states. Headset focused on a few key areas, including sales growth, product category popularity, pricing, basket analysis, and demographics.

Since Illinois is home to only 118 brands, the state is home to high market consolidation with 68% of sales coming from only 10 top brands. Illinois will soon be issuing 55 new retailer licenses to expand access to its domestic market. Currently, the state is home to 120 licensed retailers—very low compared to other states.

Headset reports that the category of pre-rolls—typically one of the fastest-growing categories—is the most underrepresented category in this market, clocking in at over four percentage points lower than the national average. “The category represents an area of opportunity in Illinois as Pre-Rolls in the state have seen sales increase 5.6% in the last year,” Headset reports. “In Illinois, 27% of total sales come from vertically integrated products. This is the third highest of any currently tracked state behind only Colorado (28%) and Massachusetts (44%).

“Prices in Illinois are among the highest in the country,” Headset reports. “The average item price in Illinois is currently 89% higher than the rest of the US market. Consumers over the age of 41 typically account for 36.4% of sales, however, in Illinois they capture 42.1% of total sales.”

The data was collected from real-time sales reporting by participating cannabis retailers via their point-of-sale systems. Headset stipulates, however, the potential does exist for misreporting in the instance of duplicates, incorrectly classified products, inaccurate entry of products into point-of-sale systems, or human error.

State leaders, however, are taking action to fix some of the problems that are evident in the Illinois market. For example, Illinois is the next state to allow licensed cannabis businesses to take tax deductions under Section 280E.

Illinois Gov. J.B. Pritzker recently signed a budget bill on June 7 that includes provisions for the cannabis industry, specifically regarding establishing funds dedicated for cannabis businesses and allowing them to take tax deductions.

The Fiscal Year 2024 State Budget bill includes the Cannabis Regulation and Tax Act which addresses issues with cannabis businesses not being allowed to make tax deductions under Section 280E.

The budget bill also includes a provision that creates the Cannabis Business Development Fund that is aimed at helping cannabis business owners in Illinois, a fund would “provide low-interest rate loans to Qualified Social Equity Applicants” to pay for expenses such as “starting and operating” a cannabis business (and compensate the Department of Commerce and Economic Opportunity for costs related to those low-interest loans or grants). 

The fund would also pay for outreach “targeted to attract and support” social equity applicants, as well as research involving “minorities, women, veterans, or people with disabilities in the cannabis industry.” 

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