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Hot off the press cannabis, marijuana, cbd and hemp news from around the world on the WeedLife Social Network.

Accused marijuana grower won’t serve time in joint

A Needville man arrested in January 2019 and charged with growing marijuana next door to a church and across the street from the high school has had his case dismissed.

Michael Ferguson successfully completed a pretrial intervention program and charges were dismissed in September, the Fort Bend County District Attorney’s Office reported.

By completing pre-trial diversion, Ferguson essentially will never have been tried, and thus have no criminal record in connection to the case.

Ferguson came to the attention of the law in January 2019 after the Fort Bend County Narcotics Task Force, a Houston HIDTA Initiative, concluded an investigation targeting his residence where the manufacturing and cultivating of hydroponic marijuana was suspected of taking place, Fort Bend County sheriff’s officials reported.

On Wednesday, Jan. 30, 2019, a search warrant was executed at a residence in the 16400 block of SH 36.

Task Force officers said they discovered the garage had been converted into a hydroponic marijuana growing operation capable of growing and harvesting several hundred plants at a time, deputies reported.

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More Marijuana Regulation Is Always a Bad Idea

Prior to 1913, marijuana was legal nationwide. Motivated by anti-immigrant sentiment resulting from an influx of Mexican immigration after the Mexican War in 1910, states started to outlaw marijuana. By 1931, 29 states effectively outlawed it. The Controlled Substance Act of 1970 officially banned marijuana federally, as part of the government’s War on Drugs effort.

These policies have caused incredible suffering through the loss of lives and livelihood—police violence against black and minority communities, poverty, asset forfeiture, mass imprisonment, and health hazard through adulterated black-market products, to name a few.

However, 2020 was a big year for drug legalization, especially marijuana legalization, and 2021 seems likely to continue that trend. However, layers of regulatory inconsistency have imposed a de facto barrier in the production, distribution, and consumption of marijuana or marijuana-based products in the legal context. There is a lot more work to be done.

For example, the 2018 Farm Bill legalized hemp, a marijuana derivative containing only 0.3 percent THC. Yet hemp farmers struggle to find banks to keep their legal business afloat. Erik Bogard, president of the hemp processing company Columbus Naturals, said: “I called probably 20 different companies and got denied 19 different times before I found someone, and it’s probably 10 times the cost of what it would be if we weren’t dealing with hemp.”

The strict 0.3 percent threshold is difficult to maintain since the concentration level varies depending on the growth period and harvesting environment. Testing requirements are not clearly laid out either. The Farm Bill puts the USDA in charge of setting testing regimes while the FDA and DEA are involved in other parts of regulating the derivates of marijuana.

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Legalizing marijuana in Pa.: Why this GOP state senator and ex-U.S. marshal says it's time

A former federal law enforcement officer turned Pennsylvania lawmaker became the second Republican state senator to publicly endorse legalizing recreational marijuana in the Keystone State.

York County state Sen. Mike Regan, the chairman of the Senate Law and Justice Committee, circulated a co-sponsorship memo late Monday to colleagues soliciting support for a bill to legalize marijuana for those 21 and older.

He said the revenue could be used to fund police, fight violent crime in cities and pay for afterschool programs in disadvantaged neighborhoods. 

“Our law enforcement agencies and justice system do not have the manpower or time to handle these minor marijuana offenses that clog our courts and produce little return,” he wrote.

“Instead, police and prosecutors need to focus on protecting our residents from the violent criminals and large-scale drug importers that are also dealing in heroin and fentanyl, which kill thousands of Pennsylvanians each year.”

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Prosecutions for Marijuana Possession Have Plummeted Since Hemp Legalization

More than six months after Texas legalized hemp, marijuana prosecution cases fell dramatically, with prosecutors filing fewer criminal charges while unleashing a struggle for police departments who now need to test substances in private labs, in order to prove illegal marijuana possession.

Since Gov. Greg Abbott signed the legalization of hemp at the beginning of June, focusing on agricultural practices and regulations, the number of misdemeanor marijuana possession cases dropped nearly two-thirds across Texas.

In 2018, Texas prosecutors filed about 5,900 new misdemeanor marijuana possession cases a month, as reported by the Texas Tribune, the first five months of 2019 saw an average of more than 5,600 new cases filed a month.

However, since June -when the hemp law was enacted- the number of cases has been slashed by more than half. In November, less than 2,000 new cases were filed, according to court data.

“In 2019, #txlege legalized hemp and threw into chaos the prosecution of marijuana crimes. From 2018 to 2019, pot possession arrests plummeted from 62.9k to 45.1k. In 2020, that number kept falling. @TxDPS reported 23.7k arrests statewide”. Reporter Jolie McCullough tweeted.

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Marijuana seizures at the Michigan-Canada border are booming. Here’s why.

They hit the throttle and sped through pitch-black water. Customs and Border Patrol (CBP) officers spotted a vessel of some sort in the distance, near the uninhabited Celeron Island in the Detroit River at 2:35 a.m., June 5, 2020.

They cut through the international waterway that separates Michigan and Ontario, Canada and noticed something else near the watercraft: two floating bundles attached to an unconscious man by a tow strap.
 
According to federal court filings, they later learned the man is Glen R. Mousseau of Canada. He was wearing a wetsuit, and his “vessel” was no ordinary boat. It was a Seabob, a personal submarine, similar to the underwater jet fictional special agent James Bond used in the 1965 movie “Thunderball.”
 
Except, Mousseau wasn’t attempting espionage. He was trying to smuggle 265 pounds of Canadian marijuana into the U.S., Homeland Security Investigations Special Agent Christopher A. Leonard wrote in charging documents filed later the same day. Mousseau is now serving a nearly six-year federal prison sentence.
Mousseau’s arrest is one of several illustrating the increasingly sophisticated lengths Canadian smugglers are going to in order to get marijuana into the U.S., where there is a state-to-state patchwork of marijuana laws ranging from full legalization to total prohibition, creating unique economics and profit motives.
“It’s about profit,” Detroit-based Homeland Security Investigations Assistant Special Agent in Charge Matthew Stentz said.
The factors that influence those profits are supply and demand, directly impacted by legalization and prohibition.
“I think in Canada right now there is just so much of it and there’s profit to be had in the United States ... especially with the high-grade, potent stuff that’s being grown within the greenhouses,” Stentz said. “That is still very desirable in states where it’s not necessarily legal.
“It’s fascinating that you can sit there and you look into parts of rural Ontario from Michigan, you can look across the water, whether it’s Lake St. Clair or the Detroit River, you can see in the middle of the night the glow of these greenhouses that are basically just mass producing this stuff on a daily basis.”
 

Market dynamics steer smugglers to Michigan, and ‘submersible watercraft’

Customs and Border Protection officials this year have seized nearly 15,000 pounds of marijuana at the Michigan border, predominantly in Detroit. That’s seven times as much as the 2,189 pounds seized in 2018. Homeland Security Operations, the federal law enforcement arm that investigates smuggling, has seen its seizures boom at other northern borders, including Buffalo. There were 1,071 pounds seized there in 2016, versus 41,000 in fiscal year 2021.
Conversely, marijuana seizures at the southern border, marijuana’s traditional route into the U.S., has experienced a steep decline. Customs officials seized nearly 723,000 pounds of marijuana at its southern checkpoints in 2016, compared to about 200,000 this year, a 72% decrease.
In Detroit, the size of the marijuana shipments are growing, while the frequency of seizures are on the decline. According to CBP statistics, there were 1,337 “seizure events” in 2019, versus about 700 in the last year.
Most of the Canadian-smuggled marijuana intercepted in Detroit or at the Blue Water Bridge in Port Huron isn’t destined for Michigan, Stentz said. It’s usually headed for states where demand -- and prices -- are higher. With Michigan’s large legal market, a caregiver system and the ability for people to legally grow recreational-use marijuana at home, Canadian smugglers can make more money in states where marijuana remains illegal, places like Tennessee, the Carolinas and Georgia.
 
“With Michigan being a recreationally legal state, anyone bringing drugs from Canada will probably be best served to sell those drugs in a state where they can maximize their profit,” said DEA Detroit Field Division spokesperson Brian McNeal. “Logic would suggest that not all, if any of those drugs are destined for the state of Michigan.”
Mousseau, the man found unconscious with marijuana in the Detroit River, was previously arrested in May 2020 following a traffic stop in St. Clair County’s China Township, about 30 miles south of the international Blue Water Bridge. He was driving a U-Haul with a package containing $97,000 in cash, according to the federal complaint.
Police arrested Mousseau and he admitted to operating an organization that smuggles drugs and money back and forth across the border. At the time, he was trying to get cash back to Canada.
“Mousseau stated that he provides GPS coordinates to an individual in Canada, who traverses the river using a submersible watercraft,” the federal complaint said. “Mousseau would then send the contraband or currency and his associate back across the river.
“Mousseau also admitted that he was the owner of submersible watercraft seized by Border Patrol agents” in April 2020 from the Zug Island shoreline, also located in the Detroit River.
Police released Mousseau to a Comfort Inn for the night, where he was supposed to stay before turning himself in the following day, but he fled and wouldn’t be seen again by police until he turned up unconscious in the Detroit River.
In addition to mini-submarines, smugglers are also using more complex schemes to sneak marijuana over the border by way of bridges and tunnels.

 

The trucker

Long-haul trucker Tasbir Singh, 32, was tricked into smuggling nearly 2,270 pounds of marijuana worth $3.6 million from a nondescript warehouse in North York, Ontario, Canada, located about an hour north of Toronto, into the U.S. by way of Detroit, where Singh was arrested by U.S. Customs and Border Protection officers July 7.
Singh owns his truck, which he contracted to a trucking company that booked the load with a freight broker, who in turn booked the load from a shipper. Singh is at least three degrees separated from whoever snuck marijuana into the freight.
Singh picked up a sealed trailer with paperwork that said he was hauling compression springs to Ohio. When Border Patrol X-rayed his trailer in Detroit, they noticed an “anomaly,” pulled Singh to the side, searched the freight he never laid eyes on and found marijuana hidden within.
“What I can say is the people who committed this fraud were experts,” said attorney Ellen Michaels, who defended Singh and eventually convinced prosecutors to dismiss the felony charges they filed against him.
Michaels, as well as Singh’s employer, maintain he was duped into becoming an unwitting accomplice in the smuggling operation.
The view of the Ambassador Bridge from Riverside Park on Thursday Sept. 16, 2021 in Detroit. Nicole Hester/ MLIVE.com

 

The nurse

Another smuggling attempt that ended with a seizure at the Detroit border was more blatant, but equally sneaky, according to federal authorities.
Investigators say 50-year-old Terri L. Maxwell, a registered Canadian nurse, was caught smuggling 154 pounds while trying to enter the state via the Ambassador Bridge at the Detroit border about 9 a.m., April 22, 2020.
At the time, coronavirus pandemic restrictions limited border crossing to first-responders and health care workers. Maxwell, dressed in scrubs and a lab coat with a Henry Ford Medical Center employee badge, used her employment as a cover for her smuggling activity, CBP officers said in the federal complaint.
While randomly checking Maxwell’s trunk, officers smelled marijuana and discovered 143 bags of vacuum-sealed cannabis.
“She was basically using her position as a nurse and telling everyone, ‘Oh, I’m on my way to work,’ when she was actually smuggling marijuana,” Stentz said.
According to Stentz, Maxwell was working as a “mule,” solely as a transporter paid by the carload she delivered across the border.
Maxwell pleaded not guilty and her case is pending. Her attorney, Marshall E. Goldberg, declined comment. According to federal court records, Maxwell has filed a motion requesting a competency evaluation before the case proceeds. A hearing on that motion is set for Nov. 17 in Detroit’s federal courthouse.
 

Bi-directional smuggling

Law enforcement authorities look at smuggling sort of like Newton’s Third Law: every action has an equal and opposite reaction. When a smuggled shipment reaches its destination, it’s likely to prompt another illegal smuggling shipment, whether it be money, drugs or guns.
Stentz said federal agents work with Canadian officials to “really attack the bi-directional smuggling, criminal organizations that are not just moving the marijuana, but the cocaine, the methamphetamine and the bulk cash, because it’s all related.”
“Your marijuana that’s coming in, basically, that driver might have to pick up some cash to take it back to the organization, or they might pick up cocaine and take it back,” he said.
When border agents stop someone like Singh or Maxwell, those defendants aren’t the real target.
“The goal is basically to link them to the larger criminal networks,” Stentz said.
 

The good stuff

Canada legalized marijuana nationally in 2018. Market saturation, both legal and black market, followed.
“When marijuana became legal in Canada ... it took about 18 months before we started seeing large commercial loads come through the border,” Stentz said. “What’s interesting: 15 to 20 years ago, a large marijuana load from the border would have been 45 to 50 keys (kilograms). Now you’ve seen from the press releases you’re seeing 1,500 keys (kilograms).”
That’s an increase from about 100 pounds to thousands.
Stentz said the same sort of illicit domestic sales occurred when states like Colorado legalized marijuana.
“It just kind of saturated the market in Colorado, so you had people trying to unload it and make profit from it,” Stents said. “I guess that’s what we’re seeing internationally with the Canadian-sourced marijuana, except at a macro level.”
Another factor driving Canadian-smuggled marijuana to the U.S. is the sophistication of smokers, Stentz said. They’re looking for better quality, more potent product, qualities marijuana from Mexico and South America aren’t traditionally known for.
But that could change as the Mexican government moves toward legalization.
 
What happens following potential legalization in Mexico “is going to be interesting,” Stentz said. “Now all of the sudden you’ve got good quality production in Canada and equal quality grows going on south of the Rio Grande, then it’s going basically back to price points. Can Canadians sell their illicit marijuana cheaper than their Mexican counterparts?”
George Smitherman, President and CEO Cannabis Council of Canada, said there is so much production capacity among Canada’s legal marijuana market that producers have had to drop prices in order to compete with black-market sellers.
The only way governments will ever compete with the black market is through legalization, he said.
“One of the stronger rationales for legalization, especially if you’re coming from a conservative starting point, is that on day one, you begin restricting the business opportunities of the criminal element,” he said. “Legalization is regulation. That means bringing lawfulness to an area that was otherwise not experiencing that.”
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Cannabis Freedom Alliance Doubles Membership with Addition of New Values Members and Working Groups

Today, the Cannabis Freedom Alliance (CFA) added a new class of membership, Values Members, who share a vision with CFA of ending prohibition in a manner consistent with helping all Americans achieve their full potential and limiting the number of barriers that inhibit innovation and entrepreneurship in a free and open market; and three new working groups focused on CFA’s core values: Successful Second Chances and Competitive Open Markets.

CFA congratulates, and is proud to welcome, the newest additions to the coalition: Consumer Choice Center (CCC), End It For Good (EFIG), Nevada Policy (NP), R Street Institute (RSI), and Students for Liberty (SFL).

CFA is further proud to announce the creation of its three working groups:

Criminal Justice Reform and Successful Second Chances Working Group. This group seeks to advance policy changes that facilitate second chances for non-violent cannabis offenders through developing and socializing model policy around justice reform. In addition, the group will work to help secure clemency, commutation, pardons and the like for current non-violent cannabis offenders, as well as petitioning the White House for broader action on such clemency. This group will find ways to support former cannabis offenders in their reentry into society. This working group will be coordinated by former cannabis offender and second-chances advocate Weldon Angelos, Mission Green; and retired law enforcement officer Lt. Diane Goldstein, LEAP.

Federal Competitive and Entrepreneurial Markets Working Group. This group will help craft recommendations and produce policy papers, alongside allied organizations (subject to Steering Committee editing and approval) for CFA on promoting a free, vibrant and low-barriers cannabis market, and structuring tax policy on the federal and state level for maximal competitiveness, as we look towards interstate and international markets. This group will be coordinated by Ted Ellis, Director of Coalitions, AFP.State Competitive and Entrepreneurial Markets Working Group. This group will help craft recommendations and produce policy papers, alongside allied organizations (subject to Steering Committee editing and approval) for CFA on promoting a free, vibrant and low-barriers cannabis market, and structuring tax policy on the federal and state level for maximal competitiveness, with respect to state and intrastate marketplaces. This group will be coordinated by Spence Purnell of the Reason Foundation.

Weldon Angelos, co-Coordinator of CFA’s Steering Committee said, “We are very pleased to have so many organizations joining our mission to end the injustices of prohibition and reforming the policies that incarcerated so many individuals unfairly.”

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An Illicit Cannabis Farm So Huge, It Was Visible From Space

Okay, we know that NASA's international space station and other such spacecraft can pick up a heck of a lot of what's happening here on the third planet from the sun, but an indoor cannabis farm? 

Last week, authorities in Nevada, along with an impressive backup of national law enforcers, raided what they called the largest illegal marijuana grow in Douglas County history, and perhaps one of the largest ever to be discovered in the state, which legalized adult-use cannabis in 2017.

With 80 workers, the cannabis farm was also the largest employer in the area, rivaling several smaller firms in Douglas County, which is located some 20 miles south of Nevada’s state capital Carson City and borders Lake Tahoe.

The numbers associated with the 160-greenhouse pot grow on 22 acres of land were "staggering," reported the Record-Courier.

What did authorities do with 62 tons of weed? 

They buried it, "…hopefully deep enough to discourage anyone else from trying to dig it up," according to the newspaper. 

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Illegal activity in medical marijuana industry discussed at hearing

Illegal activity within the medical marijuana industry was among the topics discussed at the recent interim study hearing at the Oklahoma State Capitol.

"This is very near and dear to my heart in Northwest Oklahoma," District Attorney Chris Boring shared. "It's bad. I hope that you guys can find some solutions and help us deal with this problem."

Lori Carter, deputy attorney general for public policy, presented information regarding the prosecution of illegal activities within the medical marijuana industry.

"Our multi county grand jury is working with local law enforcement and state law enforcement to address these problems that we've been hearing about from all the county commissioners, residents, legislators, particularly in rural Oklahoma," Carter said. "We can prosecute those complex criminal cases because of our multi jurisdictional authority. So we're working with OBN, OMMA, other law enforcement entities to tackle that problem."

According to Carter, crimes accompanying the now legal marijuana industry include fentanyl trafficking, human trafficking and prostitution, as well as other crimes.

"We are focusing on those as well as trying to keep everything else within the law," Carter said. "Our second role really is advising on policy."

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McGuire details $1.5M in funding to fight "worst" illegal cannabis grows in 3 counties

A total of $1.5 million in state funding will be coming to three North Coast counties to fight what officials are calling the "worst of the worst" illegal cannabis grows. North Coast Sen. Mike McGuire; alongside Mendocino County Supervisor John Haschak and the sheriffs of Trinity, Mendocino, and Humboldt Counties; announced Wednesday that the funding is meant to support enforcement of laws surrounding unpermitted cannabis farms.

McGuire said Wednesday that the Humboldt and Mendocino County Sheriff's Offices will each receive $600-thousand and the Trinity County Sheriff's Office will receive $300-thousand. The funding is supposed to help staff the departments target the sites generating serious environmental and violent crimes.

Humboldt Sheriff William Honsal said during a virtual press conference with reporters that decades ago, illegal marijuana farms were small in nature, but now organized crime operations have taken hold and are abusing the environment.

"We have significant organized crime, drug cartels, and drug trafficking organizations that have really come in to take advantage of this market," Honsal said. "Now they're buying private land all over the county and they don't care about our county, they care about one thing and that's making money. It's greed."

Honsal noted that his office has seen increased rates of human and labor trafficking on these sites in recent years, and that is why serious state funding is needed to combat these grow sites.

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Lawmakers Request Special Session to Address Medical Marijuana Access

Legislative leaders in Mississippi have requested that Republican Governor Tate Reeves convene a special legislative session in the coming days to address medical marijuana access.

The request comes after lawmakers last week revealed that they have reached an agreement on a draft legislation to regulate medical marijuana access in the state. If the Governor agrees to convene a special session, it would likely begin on Friday October 1. 

On Election Day 2020, 73 percent of Mississippi voters decided in favor of Initiative 65, which established a system of state-licensed dispensaries to engage in the retail dispensing of cannabis and cannabis products to patients who possess a doctor’s authorization. However, just prior to the vote, officials representing the city of Madison – including the town’s Republican Mayor – filed suit arguing that the legislature’s failure to update guidelines for petitioners should invalidate the initiative vote. The state Supreme Court eventually decided 6 to 3 to nullify the vote in favor of Initiative 65.

The new legislative proposal being advanced by lawmakers permits qualified patients, including those with chronic pain, to obtain herbal cannabis and other formulations of marijuana from licensed facilities.

Localities would be permitted to opt out of allowing marijuana businesses to operate in their jurisdiction, a provision that differs from that of the voter-approved measure. 

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L.A. County D.A. to dismiss 60,000 past marijuana convictions

The nation’s largest prosecutor’s office is moving to dismiss roughly 60,000 marijuana convictions, the latest step to undo what some reform advocates consider the damage caused by narcotics enforcement carried out before Californians voted to legalize marijuana, Los Angeles County Dist. Atty. George Gascón announced Monday.

Under previous Dist. Atty. Jackie Lacey, the office moved last year to dump 66,000 marijuana convictions that took place before voters passed Proposition 64, the state law legalizing recreational marijuana use. But that list was compiled using information collected by the California Department of Justice, and Gascón said his office was able to identify tens of thousands more eligible cases by combing L.A. County court records.

“Dismissing these convictions means the possibility of a better future to thousands of disenfranchised people who are receiving this long-needed relief,” Gascón said in a statement. “It clears the path for them to find jobs, housing and other services that previously were denied to them because of unjust cannabis laws.”

Gascón has long championed efforts to reverse what he sees as the racially disparate and overly punitive effects of the nation’s war on drugs. While serving as San Francisco’s top prosecutor, he sought the dismissal of nearly 9,000 felony and misdemeanor marijuana convictions that were processed before the passage of Proposition 64. As part of that effort, Gascón partnered with nonprofit tech organization Code for America, which developed an algorithm to analyze county data and identify cases eligible to be cleared under Proposition 64.

 
About 20,000 of the convictions expected to be expunged under Gascón’s Monday order were for felony possession or cultivation of marijuana, said Jean Guccione, a spokeswoman for the L.A. County district attorney’s office. The remainder were misdemeanors filed in jurisdictions that do not have their own city attorney’s offices, she said. It was unclear how far back the case review went, but while in San Francisco, Gascón had sought to overturn cases dating to the mid-1970s.
 

Felicia Carbajal, executive director of the Social Impact Center, a Los Angeles-based community center, said her organization first helped identify the discrepancy in Los Angeles County’s handling of case expungements, noting the potential problem with relying solely on California Department of Justice records to identify cases that would qualify for relief.

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How Michigan hopes to make small marijuana business ownership more accessible

Sun Provisions in Decatur is a little, family-owned marijuana shop with an extraction lab in the back.

The display cases feature six brands of flower, a couple rows of vaping cartridges and few flavors of gummies. There’s a 150-plant grow and trimming area in the basement.
Everything is done in-house. It’s one of only a few marijuana microbusinesses that exist in Michigan.
 

“It’s been a struggle,” said Helen Sun, 33, Sun Provisions operations manager and daughter of the owner. “We came really close to having to restructure, but we were able to squeeze by and make it from one harvest to another.

“I think we’ll be OK, but the difference between feast and famine is going to be allowing us to grow and do more.”

Michigan marijuana regulators say they want the industry to be inclusive -- a place where an average entrepreneur can thrive -- not just a playground for corporate money and deep-pocketed financiers.
This is why the so-called microbusiness license was created, but nearly two-years after its inception, only a few exist. With some tweaks, the Marijuana Regulatory Agency in its most-recent proposed set of rules hopes to change that. The agency has created what is called the “class A microbusiness” license.
 
The license type would create what many believe is a more economically feasible business model by doubling the allowable plant count to 300. It also permits microbusinesses to purchase or acquire mature plants from licensed growers, registered caregivers or patients, and purchase ready-to-sell edibles, concentrates, vaping cartridges and other non-flower products from licensed processors, all of which is forbidden under the initial microbusiness rules.
One tradeoff: businesses like Sun Provisions would no longer be allowed to do their own in-house processing, unless they also acquire an additional processing license.
So far, seven of the original microbusiness licenses have been issued, but only about three have actually opened their doors to customers.
 
With the current unique, self-contained, seed-to-sale microbusiness setup, some communities have been reluctant to allow licensing opportunities, and there are claims within the industry that the business model is difficult to make profitable.Sun said her family’s seven-person operation, due to the grow limitations, has come dangerously close to entirely running out of THC products on multiple occasions since opening in March.“The challenges we’ve heard about the existing microbusiness are twofold,” said Marijuana Regulatory Agency Director Andrew Brisbo, who discussed the proposed new microbusiness license during a panel at the National Cannabis Industry Association Midwest Business Conference this week at the TCF Center in Detroit Thursday.
“The first is that there was not enough biomass to be sustainable, not enough plant material or plant count. And the second was that it’s incredibly expensive to set up the processing part of it, which you have to have a variety of products to be successful ...
“And by eliminating the processing piece altogether, it eases the regulatory burden as well as helps us keep the costs a little lower.”
Sun said her mother invested heavily to build their processing capabilities and she hopes that the business can be grandfathered under the new licenses type, if approved, to continue in-house processing with the elevated plant count.
 
“We bought everything, we built this out, we built to the (Marijuana Regulatory Agency) specifications and it sucks to learn ... that this is not enough, and to have to struggle,” Sun said. Chris Jackson, the government and legislative affairs and social equity lead with Sticky cannabis company, participated in the panel discussion with Brisbo on Thursday.
“Assuming that the rules stand, they haven’t created a pathway yet for current microbusiness owners to be able to transition into the new license type,” he said.
Jackson talked about a microbusiness concept that is currently forming called the “micro-mall.”
It’s “where you have multiple microbusinesses in one space and they have shared costs, versus everyone has to do it themselves, pay their rent or franchise fees,” Jackson said. It would be like a marketplace with a separate licensed social consumption lounge on site for customers to smoke or ingest their purchases, he said. The first such operation is expected to open in Muskegon within the coming year, Jackson said.
 
The proposed rules that would create the new class A microbusiness are available for review and the Marijuana Regulatory Agency is accepting public input through Sept. 27.
 
Once a set of rules is finalized and approved by Marijuana Regulatory Agency director, they will require approval by the Joint Committee on Administrative Rules (JCAR) before becoming law.
 
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State regulators take a big bite out of the marijuana market

It’s been almost a year since New Jersey voters passed by a 2-1 margin a “Constitutional Amendment to Legalize Marijuana,” as it was misleadingly labeled.

It was misleading because the title would lead you to think that once the amendment passed you might be able to go to the local pot store and buy some “Alice B. Toklas brownies.”
That was the name of the first form of edible marijuana that most Americans ever heard of.
Toklas was the confidante of writer Gertrude Stein on the 1920′s Paris scene. She wrote a book in which she included the recipe for a sort of chocolate fudge laced with cannabis.
 
 

“It might provide an entertaining refreshment for a Ladies’ Bridge Club or a chapter meeting of the DAR,” Toklas wrote. “Euphoria and brilliant storms of laughter; ecstatic reveries and extensions of one’s personality on several simultaneous planes are to be complacently expected.”Not in New Jersey. As we approach the first anniversary of that amendment’s passage, the new bureaucracy called “The Cannabis Regulatory Commission” has not yet accomplished the simple task of legalizing marijuana.But the CRC has one major accomplishment: It has prohibited the sale of any marijuana products “resembling food.” The only acceptable edibles will be lozenges.

The regulations exclude brownies, cookies, and those chocolate bars that are so popular with the customers at NJ Weedman’s restaurant/pot dispensary on State Street in Trenton.

The Weedman, otherwise known as Ed Forchion, runs what you might call a “free-market” dispensary. So far the powers-that-be have let his business operate, possibly because it’s the only thriving business on that stretch of State Street.
Forchion is applying for a license. But if he gets one he’ll have to stop selling some of the most popular products in his store.
“Women buy edibles,” he said. “Women don’t want to be smoking in public, so they have a cookie in their purse and then reach in now and then and eat it.”
As for men, the male marijuana users of my acquaintance like nothing more than to bogart a big bone, if I may lapse into jargon.
 
 

But towns all over the state are strengthening their anti-smoking ordinances to counter the pot smokers. So why ban the sort of marijuana that produces no fumes?

Evan Nison of the New Jersey Chapter of the National Organization to Reform Marijuana Laws (NORML) said that is counter-productive.

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Lawmakers reach long-awaited medical marijuana deal

Legislative negotiators and leaders have agreed on a draft of medical marijuana legislation, and are anticipated to ask Gov. Tate Reeves as early as Friday to call the Legislature into special session, sources close to the negotiations said Thursday.

Legislative leaders on Thursday released some details of the proposal — which had been kept close to the vest for months — such as that cities and counties will be allowed to “opt out” of having medical marijuana cultivation or dispensaries, although local voters can override this. 

Negotiations have dragged on throughout the summer on crafting a medical marijuana program to replace one passed by Mississippi voters in November but shot down in May by the state Supreme Court on a constitutional technicality.

 

House Speaker Philip Gunn in a Thursday interview on a Supertalk radio show said he believed the House and Senate leadership and negotiators are “in agreement” on a draft bill, and he believes both chambers have the votes to pass such a measure. He said he planned to get together with Lt. Gov. Delbert Hosemann, then barring any last minute glitches “inform the governor we are ready.”

Other sources close to the negotiations on Thursday told Mississippi Today they anticipate that request to the governor would happen as soon as Friday. Reeves has sole authority to call lawmakers into special session, and would set the date and parameters of a special session.

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Giuliani Associates Offered Donation to Cuomo to Launch Pot Business

Politicians and associates in New York on both sides of the aisle are implicated in alleged involvement of misappropriated money to benefit the launch of a pot business. Two Rudy Giuliani associates—Lev Parnas and Igor Fruman—told a Russian millionaire in 2018 they offered a $125,000 straw donation to then-Governor Andrew Cuomo to curry favor in launching a pot business in New York, court filings say.

First reported by New York Daily News, the ongoing scandal continues to reveal a web of corruption in marijuana markets in multiple states.

Cuomo signed legislation on March 31 to legalize adult-use cannabis in New York, but was criticized for dragging his feet in getting the market up and running. New York Governor Kathy Hochul, who replaced Cuomo, promised to pick up where Cuomo failed, and get the state’s adult-use cannabis market off the ground. 

Political infighting stalled progress in The New York State Legislature—forcing it to end its 2021 session in July without taking action on a core piece of the state’s adult-use cannabis law. New York residents and legal advisors were frustrated about the delays on a control board, among other things.

New York’s Marijuana Regulation and Taxation Act provides advanced social equity provisions. Like any other state with a legal market, competition is high to obtain licenses and establish dominance in the market. 

But allegations of corruption in the approval process could include both the former governor and the former attorney of Donald Trump.

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Prospect of federal marijuana legalization doesn’t have everyone in Michigan industry jumping for joy

One thing most people agree on: Federal marijuana legalization is coming.

It’s just a matter of when -- and how it will impact existing state markets, such as the one currently growing in Michigan.
With the inconsistent patchwork of state laws across the nation regarding medical and recreational marijuana, the implications of federal legalization, accompanied by new taxes, is creating some anxiety.
“Opening up interstate commerce would destroy Michigan’s cannabis industry and leave us with nothing but multi-state operators to purchase from,” said Rick Thompson, a Michigan cannabis pioneer and director of the Michigan chapter of the National Organization for the Reform of Marijuana Laws (NORML).
Thompson said everyone he knows “stands in opposition to at least some of the” current version of the proposed federal legalization plan.
 
Some of the worry centers on marijuana surpluses in Canada and other states, like Oregon, where producers would benefit greatly from the ability to dump cheap product into the Michigan market, undercutting existing businesses along the way.
The topic of federal legalization was the focus of a panel discussion at the National Cannabis Industry Association Midwest conference at the TCF Center in Detroit on Wednesday. The National Cannabis Industry Association is a trade organization and lobbying group that is weighing in on efforts to end federal prohibition of marijuana.
In a draft of federal legalization legislation released in July by Democratic U.S. Senators Chuck Schumer of New York; Corey Booker of New Jersey; and Ron Wyden of Oregon, entitled the Cannabis Administration and Opportunity Act, there is a proposed 25% federal excise tax for marijuana in the fourth year after legalization. That’s on top of existing state taxes, currently at 16% for recreational marijuana in Michigan.
National Cannabis Industry Association Midwest deputy director of government relations Michelle Rutter Friberg, said that’s too much.
 
“This is on top of really onerous state and local taxes,” she said, adding that it’s unlikely those will be reduced in the wake of a new federal tax.
“The conversations that we’re having about that are: What are they trying to get out of this tax provision?,” Friberg said. “Are we just a cash cow? Are we to make up for a budget shortfall, or what are the goals that they have? Because we keep going back them and saying, ‘You cannot tax this high’; this is not going to have the intended outcome that you were trying to achieve.”
While Friberg said some businesses might view federal legalization as “the boogeyman that’s out there,” she’s never had an NCIA member company tell her they’re entirely against federal legalization.
One stated goal of federal legalization is to combat the black market, but new taxes could encourage the illicit market.
If significant new federal taxes are imposed, “the black market will have a party like you have never seen before,” Thompson said. “It was nearly impossible to eliminate illegal cannabis sales when there was no tax; it is impossible to eliminate unlicensed sales with a 10% tax rate; and if the tax climbs to 35% or higher, the regulated market will shrink rapidly as people return to their unlicensed cannabis sources forever.”
 
Schumer, the Senate majority leader, said another intent of the legislation he helped draft is to ensure big tobacco and liquor companies don’t “swoop in and take over,” but some feel that’s going to be difficult to avoid once federal legalization arrives.
“Definitely the bigger conglomerates do have the upper hand with legalization,” said Jack Owens, operations manager for Thumb Genetics, a 2,000-plant aquaponics grow facility in Lansing.
His family-owned company, which he runs with the help of his mother and father, is already competing with a growing number deep-pocketed, in-state corporate rivals able to harvest tens of thousands of plants at a time.
“You’ve got to hit a medium ground where the big conglomerates and the smaller companies work together; otherwise, it’s just going to be monopolized,” Owens said. “Once it happens, certain dispensaries and everybody can go over state lines -- and they still have a lot of gray areas to figure out -- but how quickly is that going to happen and what big companies are going to pretty much take over?
“Once that happens, you better be ready to partner up, or hopefully have enough quality product and enough clients that will support you to make it through.”
 
Michigan’s medical marijuana caregivers, who are allowed to grow up to 72 plants for five registered patients and themselves, are currently in the crosshairs of large businesses and lobbyists who want to see their ability to grow severely limited and increasingly regulated.
Michael Toles of Intentional Enterprises, a fledgling marijuana grow company that plans to open in Detroit where recreational marijuana licenses are currently on hold, supports nationwide legalization, but believes it will eventually lead to the end of loosely regulated, untested home recreational and caregiver grows.
 
“You think that’s going to last?” he asked? “It’s not tested and it’s not taxed.”
Thompson, of NORML, a supporter of Michigan’s current laws that allow caregiver and personal home grows, didn’t weigh in on whether he thinks they’ll go away, but anticipated what will happen if they do.
“Caregivers will fail to renew their registration, if federal laws are adopted, but they will not fail to continue to grow,” he said. “Eventually, government will have to realize that cannabis users will merely ignore laws that make no sense, disadvantage them or are created for the advantage of corporations, not citizens.”
 
The current draft of the federal legalization bill, which calls for an excise tax that increases to 25% after four years, not including state taxes, is unlikely to pass in it’s current form, according to Friberg.
“Do I think that this bill will come up this session? Honestly, yes, because it’s the leader’s bill,” she said. “Do I think this bill is going to pass this session? ... No, not right now -- but, you know, anything can change.”
A bright spot for marijuana at the federal level is related to cannabis banking reform, which is included with the likely-to-pass National Defense Authorization Act (NDAA) for fiscal year 2022. The addendum would protect banks from federal penalties if they work with cannabis companies. Currently, because marijuana is illegal federally, many large financial institutions are not offering services to the industry.
 
Toles believes the positive tradeoffs for businesses in a federally legalized environment outweighs any negative aspects.
“Because (of federal legalization), we’ll be able to expand to other markets,” Toles said. “We learn how to do it well so we can duplicate processes everywhere within the country.
“Obviously from a financial perspective, the larger, bigger Phillip Morris of the world ... is going to be part of it, but we’ll see.”
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San Diego Wants to Infuse Social Equity in the Cannabis Industry

When California legalized cannabis for adult use in 2016, many supporters acknowledged that the War on Drugs had disproportionately impacted communities of color around the state. It was, in fact, one of the selling points of Proposition 64, which went into effect more than a year later. 

On the belief that the ballot initiative didn’t go far enough, though, social equity programs started springing up across the state in recent years to give special privileges to Black, Brown and low-income people who had been arrested and thrown in jail for nonviolent cannabis-related offenses and thereby barred from taking part in the new industry. 

One survey, conducted in 2017 by Marijuana Business Daily, found that about 80 percent of the founders and owners of cannabis businesses at the time were White. 

Neither the city nor the county of San Diego has a social equity program on the books and officials for both say they’re working to create one. By their own admission, they’re late to the game. 

But that’s not necessarily a bad thing, considering that other municipalities in California have tried and failed to correct the injustices they previously identified. In some places, social equity programs have been portrayed as harmful to the same people they were supposed to help. 

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Second teen admits guilt in fatal Middletown shooting allegedly over $60 marijuana debt

The second of three teens charged in an apparent robbery attempt that turned deadly last winter in Middletown has admitted guilt.

Timathy Rhodus and Elliot Shepherd II, both 17 at the time of the crime, were each indicted in April for murder with gun specifications and other felonies for the Jan. 31 incident where a woman was killed at a Wilbraham Road residence. They are being tried as adults.
On Tuesday, Rhodus pleaded guilty to murder with a one-year gun specification in Butler County Common Pleas Court. The other charges, including felonious assault, were dismissed, according to court records.
 

Judge Dan Haughey set sentencing for Oct. 26. Rhodus faces a maximum of life in prison with the possibility of parole after 16 years.

In May, Shepherd pleaded guilty in Butler County Common Pleas Court to involuntary manslaughter with gun specification. He faces a maximum of 12 years in prison. Sentencing will not happen until after the co-defendants’ cases are completed, according to prosecutors.

A trial for the third adult suspect, Karlos Chase Philpot,18, is scheduled to begin Oct. 18. Philpot was indicted in February for murder, two counts of aggravated robbery, four counts of felonious assault and improperly discharging a firearm into a habitation.

Angela Combs, 41, was shot about 9 p.m. in an apartment in the 3100 block of Wilbraham Road by suspects who came to the door armed and apparently looking for payment of a debt, according to court documents. Combs was transported to Atrium Medical Center, where she died.

According to court documents, one of the 17-year-olds said he went to the residence armed with two other people to “get $60 that was owed to him for marijuana.”

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Old Roseland school site of new cannabis business? Neighbors say no

Two area businesswomen want to open a cannabis growing, manufacturing and retail distribution facility in a building that once housed a Roseland charter school, but some area residents say they object to that kind of business in their neighborhood. Old School Cannabis, which has applied for permission to operate at the site, will be considered by the Santa Rosa Planning Commission during a scheduled meeting Thursday afternoon.

The business’ owners say it could create as many as 50 jobs during peak production periods. Local residents would receive first consideration for any open positions and the business, itself, would attract a significant cross-section of patrons to the area.
 

“We want to ... uplift the community and build jobs and uplift the culture,” co-owner and operator Nayeli Rivera said.

Rivera said she is a first-generation immigrant whose parents moved to Sonoma County in the 1970s. She added that she grew up in Petaluma and now lives in Sebastopol.

“Being Mexican-American and being a business owner in the (Roseland) community, I think, is just a wonderful opportunity and I feel very excited and very humbled,” she said. “There’s not many Latinos in cannabis and especially not women.”

Her partner, Cede Hunter, is also from Northern California. Hunter’s father, Dennis, was a cannabis industry leader in Santa Rosa, according to a biography in the company’s permit application.

Located at 100 Sebastopol Road, the former school building is bordered by industrial facilities to its north and south. Residential neighborhoods are on its other two sides.

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Las Cruces will pull $150,000 investment out of hemp manufacturing company

The Las Cruces city council voted to pay the state back $400,000 that was going to go to a new hemp manufacturing company.

The city planned to invest $150,000 of its own funding in addition to $400,000 that the New Mexico Economic Development Department gave the city for 420 Valley, LLC.

The city's decision to retract the money was due to the fact that 420 valley was unable to meet its hiring goals.

"They we’re going to provide up to 55 jobs at a certain income level by 2023, December 31st," said Las Cruces Mayor Ken Miyagishima. "And then there was also another stipulation that they would have at least 18 jobs by December 31st of 2020 and we don’t believe that they’re going to fulfill that.”

“We started reaching out to people for the hiring process, getting it lined up, but we didn’t have anybody that was fully committed to come work for us," said Rick Morales the co-owner of 420 Valley.

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