 The American Society for Testing and Materials (ASTM) has created a new logo that they hope will eventually become a unified symbol to serve as a product warning label on cannabis products.
Right now, states with legal cannabis markets each already have their own unique symbols that they require on THC products. This new ASTM symbol is not intended to replace those state symbols which are already established, but rather the new symbol is intended to be used in cannabis marketplaces that have not yet established a symbol. The ASTM hopes that eventually the already established markets will integrate this new symbol onto their products, too. The intention behind this is to have one uniform symbol across all the states, and potentially across the world, that would help consumers clearly identify products that could cause THC intoxication or create a safety hazzard while using. The new ASTM symbol is an upright yellow triangle, with a black border, and an image of a black marijuana leaf in the middle of the triangle.  With Canada having legalized cannabis nationally, they are definitely a step ahead of the United States. Looking at what’s happening with weed in Canada can be a good source of information for the American cannabis market.
An article by Leafly this week covers a cannabis trend that is currently taking Canada by storm, namely: sublingual strips. Sales of these types of products increased 3000% between 2020 and 2021. Sublingual strips are popular for being discreet, portable, simple to use, and fast acting. The strips resemble breath-mint strips, such as Listerine’s PocketPaks, and they are placed under the tongue in the same way. They have an quick onset of the effects, at only 15 minutes. This is because they avoid the gastrointestinal system and enter directly into the bloodstream through a membrane underneath the tongue. Plus, because it avoids the gastrointestinal system, it gives the consumer a feeling similar to smoking or vaping. One element which could be either good or bad, depending on the user, is that the strips only come in doses of either 5 or 10 mg of THC. Another potential negative for some people is that they don’t last for very long. Sublingual strips are available in some U.S. markets right now, but do not currently have a large market share. However, by watching the massive growth in Canada, we can guess that it’s got a lot of potential here as well. The small, easy to use, simple strips with low dosing and short effect time can be a great option for first timers or those who are just curious.  Harris Bricken Law has been keeping a close eye on the different state bills that are proposed and passed for Cannabis.
An interesting bill slid was recently proposed that would create the possibility of interstate cannabis trade for California. If passed, California’s State Bill 1326 would enable the Governor to enter into trade agreements with other states that have legalized cannabis. Oregon enacted a similar bill in 2019, which allows their Governor the ability to make agreements with neighboring states where marijuana is legal, such as Washington and California. So, if California passes this latest bill, they and Oregon will be ready to begin negotiating trade agreements. All of this, though, is still subjective to Federal law. But these bills and potential agreements would put these states at an advantage, because the moment cannabis is made Federally legal, they would already have the agreements in place to begin interstate cannabis commerce. We will definitely want to keep an eye on this bill’s progress!  Cannabis tours are quickly becoming a thing. Out of towners or even out of state-ers who are curious can take tours showing all parts of the growing and processing procedures.
Gray Line San Francisco becomes the first of the major sightseeing tour companies to venture into Northern California Cannabis tourism. Gray Line has been known for hitting all the typical tourism sites, like downtown San Francisco, Alcatraz, and even some wine tours. But this is their first foray into cannabis. They have partnered with a smaller boutique company that has already been running cannabis tours, called Mendocino Experience. The company is launching a special Weed & Wine tasting tour on 4/20 this year. Gray Line San Francisco’s CEO Xavier Valls said, We are always looking for different and unique experiences to offer to our customers. Our ambition at Gray Line San Francisco is to become a one-stop-shop for any tourist that visits Northern California, and based on this vision, we felt that offering a tour that covers the history of the Emerald Triangle, the cannabis industry, and a wine tasting was something no one was offering yet. We’re grateful to be able to partner with Mendocino Experience for this experience!” Having a major tour company operate these cannabis tours in a similar way to wine tours, is a great way to normalize cannabis use amongst the general public.  The West Coast states have legalized cannabis, but things aren’t always going as cannabis business owners would like.
One huge issue they’re dealing with is safety. Everyone knows that cannabis businesses are forced to use cash, and so criminals have been targeting cannabis businesses all along the West Coast in recent smash-and-grab robberies. Local police have even been caught on video showing reluctance to intervene in these robberies. Until cannabis is made Federally legal, or the SAFE banking act is finally passed by the US Senate, cannabis businesses are pretty much left to defend for themselves. Washington state has taken steps to attempt to stop these robberies. Recently they passed a state bill which increases the penalties for these types of robberies. While it’s a good concept, it’s doubtful to prevent a criminal from giving it a go when so much money could be at stake. However, it is still a step in the right direction, as it brings more local and national awareness to the escalating problems that come with a government unable to come to agreement on cannabis banking regulation.  This week, the New Jersey Cannabis Regulatory Commission began accepting applications for cannabis business licenses.
Applications are now open for cultivation and manufacturing businesses, as well as testing laboratories, and dispensaries. Cannabis applicants have been establishing accounts on the State’s cannabis licensing website since December so many applicants were ready to submit, and nearly 200 were submitted on the first day. Applications are being accepted on a rolling basis and will remain open. In an attempt at social equity, there will be prioritization given to diversely-owned businesses. These include businesses owned by individuals with past cannabis convictions, those from designated Economically Disadvantaged Areas, and minority-owned, woman-owned, and disabled-veteran owned businesses.  We have yet another sign that America may be inching closer to the legalization of cannabis.
There’s been an ongoing downtrend in the number of federal prosecutions over cannabis related charges. These dwindling numbers show that cannabis crimes are continuing to become lower in priority as the legalization movement keeps gaining ground. According to the federal U.S. Sentencing Commission, cannabis busts only account for 5.7 percent of the total drug-related cases that the federal justice system pursued in 2021. That same report found that the average sentence for a marijuana trafficking case was 30 months, which is just about half of what is typically sentenced for other drugs such as cocaine, heroin, and fentanyl.  When New York first legalized medical marijuana eight years ago, a bill was passed to establish a medical trust fund from a portion of the marijuana tax revenue for the state.
The bill stipulated that portions of the fund were to go to different state service departments. 5% of the money was to be allocated to alcoholism and substance abuse services, including drug prevention, counseling, and treatment services. Another 5% of the money was to be transferred to the Division of Criminal Justice Services, to be put towards a “program of discretionary grants to state and local law enforcement agencies.” New York Cannabis Insider investigated and found that each of these agencies have received about a million and a half dollars for their respective programs. But strangely, despite eight years having passed, not a penny of their money has been spent, and the programs have never seen the benefits that the original bill had intended. New York Cannabis Insider reached our to the Senator who had originally sponsored New York’s medical cannabis legislation in 2014, Senator Diane Savino. After she was informed of the situation, said she intends to send a formal letter to each agency asking for an explanation on why these funds have not yet been used in any capacity. Hopefully these funds will start being used soon to benefit the residents of New York.  Last year, the state of Alabama showed real progress when they legalized medical marijuana use.
This week, an Alabama Senator tried to push back progress and take away the rights of female medical marijuana users. Senator Larry Stutts introduced a bill that if it were passed, women would be required to show proof of a negative pregnancy test before they could purchase medical marijuana. The test must be completed within the 48 hours prior to their purchase, and they must be done by a state approved doctor or certified lab. The bill states that they would hold the dispensaries and the salespeople accountable for verifying and enforcing this. Senator Stutts proposal also wants the female patients to register all pregnancies with one of their certified doctors. In 2018 a similar proposal was made Oklahoma, shortly after that state had legalized medical marijuana. That law wasn’t quite as rigid, though, as it only required women to complete a pregnancy test prior to receiving a prescription, not before every purchase like the Alabama proposal. In Oklahoma, regulators backed down and eliminated the requirement after they faced lawsuits and opposition from their own State Attorney General’s office. At that time, the ACLU said ““Requiring women submit to a pregnancy test before their doctor may make a medical marijuana recommendation is discriminatory and a clear violation of the 14th Amendment,” Back in Alabama, the Senator’s bill will be reviewed and voted on by the Senate, where it will hopefully be voted out before the lawsuits will have to begin!  Medical marijuana use is legal in the state of Florida. Despite this, the Florida Department of Health in Tallahassee, Florida, has spent four and half years pursing one doctor for prescribing medical marijuana trying to prove that the doctor did not follow proper procedures
The health department created a sting operation targeting Dr. Joseph Dorn, a physician who had been in good standing for over 30 years. The Florida Department of Health sent two undercover investigators to Doctor Dorn. The agents posed as patients suffering from Post Traumatic Stress Disorder, and after reviewing their cases, the Doctor ultimately prescribed them each medical marijuana. The Health department’s cased tried to prove that Doctor Dorn did not use proper procedures to determine if patients were eligible for medical marijuana. The Health officials asked the Judge to strip Doctor Dorn of his medical license for five years, permanently ban him from ordering medical marijuana for patients and impose a $10,000 fine. In a huge win for medical marijuana Doctors this past week, the Judge overseeing the case, W. David Watkins, issued an order recommending that the complaint against the Doctor be dismissed. Judge Watkins said that the health department "failed to present competent substantial evidence in this case." and that they did not show any proof of their allegations. Doctor Dorn's attorney, Ryan Andrews, said their investigation was not done "in good faith and now it was time for them to seek justice and right the wrongs against everyone involved."  A Senator in California took steps this week to try to help both cannabis consumers and cannabis businesses.
The state’s cannabis industry has been suffering, due in part to the fact that there is far too much product, with far too few places to legally sell it. California currently has close to 40 million people, and less than 900 legal dispensaries. The Center for Disease Control estimates that 18% of American’s use marijuana. Given these number, that means there are 7,200 cannabis consumers for each dispensary in the state. Clearly, there is a serious need for more dispensaries. Unfortunately there are not enough municipalities willing to allow that. Senator Scott Wiener listened to the cannabis industries concerns, and introduced Senate Bill 1186 this week. The bill is intended to make sure medical marijuana patients are able to access the products they need. The bill requires municipalities to allow either medical marijuana dispensaries, or medical marijuana deliveries in their respective districts. They are allowed to choose which form they would prefer, but they must chose one. According to current state legislation, California cities can opt out of allowing any cannabis businesses, medical or recreational, in their district. Perhaps due to confusion over perceived results, the vast majority of cities, two thirds, have chosen to ban all options for cannabis, even medical. Senator Wiener has chosen to address this problem with bill 1186. He acknowledged that many vulnerable Californians rely on medicinal cannabis, yet many also have a very difficult time accessing it. He further points out that the “voters decided that every Californian should have access to medical cannabis,” and “local jurisdictions should not be able to undermine the will of the people by banning businesses and nonprofits from providing this medicine.” Senator Wiener surmised his intent, saying, “We must ensure that anyone who needs medical cannabis can access this very important and even life-saving medicine.” Cannabis advocacy groups, and cannabis growers, applaud this move and hope that the state Senate will pass the bill. Photo credit: East Bay Times  Mike Tyson’s cannabis brand, Tyson 2.0, announced on Twitter yesterday that they were releasing a new product: cannabis gummies in the shape of an ear… with a bite taken out of them!
The gummies, called Mike Bites, are a nod to the time that Tyson infamously bit Evander Holyfield’s ear during a boxing match. Tyson joked on twitter that, "These ears actually taste good!" Like Tyson, Holyfield has also joked about the biting incident, and even referenced it in while he was selling his own products (barbeque sauce), when he sent out a tweet in 2012 that said, “My realdealbbqsauce.com will make u wanna take a bite out of someone's ear! Ask @MikeTyson - Luv ya bro!” Tyson’s cannabis products are currently available in Colorado, California, and Massachusetts. Tyson has plans to expand to Michigan soon.  A South Dakota man is going to jail after seniors accidentally ate his pot brownies.
Michael Koranda, age 46, of Bon Homme County, attempted to make himself brownies using butter laced with THC. Koranda had purchased the butter in Colorado, where cannabis is legal, and brought it to his home in South Dakota, where cannabis is currently still illegal, even for medical purposes. In an unfortunate error, Koranda’s mother served the pot-laced brownies to seniors at a community center card game. Shortly after, the Police began receiving several calls about a possible poisoning, and upon investigating, it was determined that the Seniors were unknowingly under the influence of THC, which was from Koranda’s brownies. He was arrested and charged. Koranda had no intention of any of this happening and apologized to the court. Judge Cheryle Gering acknowledged that Kornada did not intend for the brownies to be served to the seniors. She also noted his lack of any criminal record and said to Koranda that as a local music teacher, “You have a lot of good things to offer the community where you live.” However, Judge Gering went on to verbally admonished him, saying that if he was using drugs to deal with personal struggles, that turning to marijuana was not a solution. She said she was ‘disturbed’ that he had transported the butter across state lines. She said he had let down his students, and that as a teacher he should be held to a higher moral standard. The judge further said she would be reporting him to the State Department of Education which would impact his eligibility for employment, and that this could follow him across state lines. As a final jab, she said that his actions were more in line with a person half his age. But despite all this, the Judge still punished him with two months in jail, two years on probation, paying thousands of dollars in fines, court costs, and restitution, and he is also being required to write an apology letter to the seniors. Kornada has also had to resign from his job with the local school district where he worked as a vocal music teacher. And again, this was all over some butter, made from a plant, that truly should be legal.  In a time when it’s not unusual to have employees poached from one cannabis company to another, it’s important for businesses to be able to retain their employees.
The Cannabis Business Times released a report on the best cannabis companies to work for. Their study was done across multiple states where recreational or medical marijuana use is legal. The questions asked to employees to determine their ranking covered many aspects of employment, including leadership and planning, corporate culture and communication, role satisfaction, relationships with supervisors, training, and development, pay and benefits, and overall engagement. The survey also took into consideration some of the benefits that employers provided, such as health insurance, paid time off, retirement plans, profit sharing, tuition reimbursement, and efforts to create and foster a culture of diversity. The employees’ overall job happiness, satisfaction, and sense of pride in working for the company were the biggest determiners of what makes a company the best to work for. According to their study’s results, the top ten companies to work for are:
 Oklahoma may have found a creative, and safe, banking alternative for the state’s cannabis industry.
Using the success of crypto-currencies as an example, House Bill 3279 proposes a “hack-resistant” payment tracking system, which will be autonomous, cashless, and use virtual currency to electronically transfer digital funds. In addition, the measure plans for regulation of the virtual currency, including a requirement that the currency must be designed to be transferred or converted at the face value of $1, according to the bill’s summary. On March 15th, the state House overwhelmingly passed the bill, and sent it on to the state Senate where it will hopefully be voted into law. Representative Justin Humphrey, who sponsored the bill, hopes it will help the state’s cannabis industry in two ways, by making “sure the legal people have a means to pay money and the illegal people can’t operate.” This type of creativity could be an answer to the current problems associated with an industry unable to use traditional banking methods.  New Orleans City Council Moves to End Marijuana Drug Testing for City Employees. One of things which prompted this move, was the story of local Police Officer who lost his job.
In January 2021, a major fire broke out in an apartment complex in New Orleans, and during evacuation, a Police Officer led residents to safety. He was commended for his bravery and nominated for an award by his supervisor. Unfortunately, a routine drug test which coincidentally had been taken the same day of the fire came back as testing positive for marijuana, and the Officer was fired. As most people are aware, drug tests can still show positive for marijuana without the subject actually being high, since THC metabolites can continue to show up in urine for weeks or more after use. This month New Orleans City Council voted to give the man his job back. The City Council also unanimously passed a resolution to recommend that drug testing for cannabis be dropped. Specifically, the resolution has two components: (1) it requests the City eliminate cannabis testing as a part of pre-employment screening and (2) asks the city to change its rules so that a positive cannabis test, in the absence of signs that a city worker was intoxicated or impaired on the job, cannot lead to termination. While the City Council’s resolution itself will not change city policy, it does recommend that the branch of the city which oversees it’s employees personnel issues, namely the Civil Service Commission. And this group, which were individually appointed by the City Council, does have the power to make rules which have the force and effect of law. It’s expected that the Civil Service Commission will act in accord with the Council’s new resolution and drop cannabis testing for New Orleans’ civil employees.  For the first time, medical marijuana patients in Houston, Texas have a local place to pick up their medical marijuana.
Texas’ leading medical cannabis provider, Texas Original Compassionate Cultivation, today announced it will open the cities first permanent dispensary in Houston this summer. The location will be open six days a week and have a large selection of medical cannabis products, including gummies, tinctures and lozenges. Texas Original Compassionate Cultivation already has a dispensary in Austin, Texas. So, since the Compassionate Use Program prohibits inventory being stored overnight at more than one location, the vendor said they have a fleet of drivers who will take inventory to the Houston location each day, and return it to Austin after operating hours. The CEO of Texas Original Compassionate Cultivation, Morris Denton, said, “What’s most important is ensuring every qualifying patient in Houston has safe access to medical cannabis. If that means someone from our team has to commute from Austin to Houston and back every day, which is at least five hours, we’ll do it.” In addition to their main Austin location, and the new Houston site, the company also currently operates a dozen other pick-up locations throughout the state, and plans to continue to open more.  Thieves in Oklahoma successfully fool two legal cannabis farms this week, and make off with their marijuana. One person is in custody, while several more are on the run.
According to The Oklahoman, several law enforcement agencies are searching for at least six individuals who posed as agents of a fictional “Oklahoma Marijuana Board” in order to steal cannabis and cellphones from two grow operations, which occurred in Seminole County this past week. In both instances, six criminals used fake search warrants, badges and uniforms to impersonate state officials and demanded that apparent rules violations be paid immediately. This isn’t the first time this sort of thing has occurred. A spokesman for the state’s narcotics bureau, Mark Woodward, said that fraudsters like this will present fake documentation and badges, and claim “there were violations and demand money on-site to pay the fine for the violation or be shut down.”  Missouri is currently considering legalizing recreational marijuana use. This past week, the county of St. Louis took it’s own step towards cannabis acceptance.
The city council voted to end cannabis drug screenings for county employees, except for workers in safety-sensitive positions such as those who operate heavy machinery or vehicles, and law enforcement officers. The County Councilwoman who sponsored the bill, Lisa Clancy, said, “People who legally use marijuana for medical purposes shouldn’t be discriminated against AND this policy will remove a barrier to recruitment and hiring.” Similar action has been taken in many other major cities such as Kansas City, Atlanta, Baltimore, Philadelphia, and most recently, New Orleans. Some states have also taken steps to limit companies use of pre-employment drug testing for cannabis, including Nevada, New Jersey, New York, and Montana. The Deputy Director of cannabis advocacy group, NORML, Paul Armentano, said that the old drug testing policies “were never evidence-based and have always been discriminatory. They are relics of the failed ‘war on drugs’ policies of the 1980s and it is time that we move beyond them.”  New Jersey residents are ready for recreational marijuana, but the state isn’t quite there yet. Despite a February 22 deadline the state gave itself for sales to begin, recreational marijuana is not yet available.
The state regulators are still finishing the process of reviewing applications. Currently they are only close to completing about handful from existing medical providers. There are others who have been approved, including four vertically integrated medical marijuana licenses, 10 cultivation permits and 30 dispensary licenses but none of those are yet in operation. Currently, the only providers capable of putting product on the shelf once the state gives the green light are the five medical providers with approved applications. Co-chair of the cannabis law practice at Cole Schotz in New Jersey Rob DiPisa said, “we could have only five operators trying to meet the initial demand of the entire state.” He added that, “we won’t know until the doors have opened,” he said. Ed DeVeaux, president of the New Jersey CannaBusiness Association, said current medical cannabis operators have assured him that they have adequate supply to serve both the medical and adult-use markets. State officials have teased that the first dispensaries could be able to provide recreational product within weeks, but no firm dates have been set. Once the recreational marijuana is launched, sales are projected to exceed $2 billion.  A report from Whitney Economics showed what many cannabis business owners have been facing: a lack of profit.
While some larger companies are thriving, many smaller businesses are struggling with the complications of working with a plant that is still fighting for solid legal ground. The report surveyed almost 400 different cannabis businesses representatives in both established and emerging markets. All across the country, only 42% of respondents said that they are able to make a profit. Another 20% said that they are just able to break even. That leaves 38% of cannabis businesses who are operating at a deficit. While the report said there was little difference between most mature and emerging markets, there were a few exceptions. California seems the hardest hit, with only 26% of those respondents saying they were able to make a profit off operations. This comes as no surprise to those in the Golden State, where struggling is caused in part by crushing taxes and a lack of municipalities with legal dispensaries to sell in. Amongst the whole country, the number one concern has been safe and legal access to banking. Other significant concerns are market volatility, taxation issues, and competition from large corporate entities. The report's author, Beau Whitney, also expressed that the lack of support cannabis businesses receives compounds their difficulties. Things are constantly changing, so advocates will continue to push for the tools to help cannabis-based businesses succeed.  In California, consumers can purchase cannabis based products from the family of world famous ocean explorer and filmmaker, Jacques Cousteau. The call their brand SeaWeed Naturals. The company is led by Jacques Cousteau’s grandson, Phillipe Cousteau, and his wife Ashlan Cousteau.
The Cousteaus say their product line uses the wonders of restoratively farmed seaweeds, algae and kelp, combined with full spectrum CBD and THC oils. The product line includes topicals, balms, tinctures and gummies. In an interesting twist, Phillipe’s grandfather Jacques Cousteau disapproved of marijuana use and even wrote about it publicly. But Phillipe points out that this was at a time when education on marijuana was limited and societal views were very different. Phillipe said that his grandfather “was somebody who definitely changed and grew his perspectives as time moved on.” The new generation of Cousteaus are keeping in line with family traditions by donating 5% of company profits to ocean conservation and education. That’s something Jacques Cousteau would certainly be proud of.  California’s Department of Cannabis Control has launched a new program to assist cannabis license holders.
The new compliance hub is called CannaConnect, and it’s designed to assist in navigating the state’s regulated market, maintain compliance, and help businesses thrive. The Department of Cannabis Control’s Director Nicole Elliott said, “We know entering the regulated market can be overwhelming, complex, and challenging, but DCC is here to help. We want licensees to succeed, and CannaConnect represents a dedicated way to reach cannabis license holders by providing them with tools and resources to support the operation of a compliant business.” CannaConnect’s website will often be updated, so they encourage the public to check back often. In addition to announcing the CannaConnect program, the Department of Cannabis Control also announced new information to assist businesses with transitioning from their provisional license to permanent license.  Despite the SAFE Banking Act passing the US House of Representatives six times, the Senate has yet to approve it. Still, it seems that some banks are feeling more comfortable servicing cannabis-based businesses.
The Department of Treasury’s Financial Crimes Enforcement Network issued a report detailing the situation. It shows that close to 800 banks and credit unions report actively working with clients involved with cannabis. The increase in willingness for financial institutions to work with the cannabis industry may indicate their confidence in the potential for Federal Legalization of marijuana happening soon. Former chairman of the federal National Credit Union Administration Rodney Hood said that marijuana legalization is not a question of “if” but “when.” Representative Ed Perlmutter of Colorado spoke with Yahoo Finance on Friday, and said, “Every [House] Democrat and at least half the Republicans have supported SAFE Banking, and I am confident that the Senate will take it up,” he said.  The U.S. Department of Transportation is looking for feedback from the public regarding their new proposal for drug testing.
Their current policy mandates urine testing. And given that even if someone hasn’t smoked that day, THC metabolites can still show up even several weeks after consuming cannabis. This could cause a false positive on the current testing system. The Department of Transportation is proposing that testing of oral saliva be added as an alternate option, with a 4 nanogram per milliliter screening test cutoff. California NORML Director Dale Gieringer told Marijuana Moment that while this new proposed testing isn’t perfect, it is a big improvement over the old one. He said that, “Unlike urine tests, oral fluid tests allow for weekend, off-the-job use of marijuana by workers in safety-sensitive jobs.” A public comment period for DOT’s proposed rule change is open until March 30. Comments can be submitted to the DOT on their website at https://www.regulations.gov/docket/DOT-OST-2021-0093 |
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