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Cannabis lounge opening in Denver hotel

Cannabis lounge opening in Denver hotel

the first cannabis lounge in Denver is opening at the Patterson Inn
The Patterson Inn was recently the first — and only — business to apply for the newly available hospitality license

Weed has long been a social substance — after all, there needs to be someone to pass the dutchie on the left hand side. But because of laws limiting public consumption, there are very few places where tokers can go to socially consume it like they do alcohol at a bar.

Denver regulators and entrepreneurs hope that will soon change, however, since the city recently legalized cannabis hospitality businesses. In November, the city began accepting applications from folks who want to open smoking lounges and Amsterdam-esque gathering places, or run bus tours where consumers are able to consume cannabis.

So far just one person has applied, according to Eric Escudero, director of communications for Denver’s Department of Excise and Licenses. That person is Chris Chiari, owner of Capitol Hill bed and breakfast The Patterson Inn.

Chiari is familiar with the cannabis industry, currently serving as the deputy director of the Colorado branch of the National Organization for the Reform of Marijuana Laws (NORML) and having previously invested in a local dispensary. He also co-produced a documentary with rapper and actor Ice-T called “Public Enemy Number One,” which explores the United States’ weaponization of marijuana against communities of color.

 

Chiari first dreamt of turning The Patterson Inn into a cannabis-friendly space about a decade ago when he walked by and saw the address: 420 E. 11th Ave. The property ended up selling to other buyers, but when it came back on the market in 2018, Chiari jumped at the opportunity to purchase it.

“What I envisioned then and am working on today,” he said, “is to combine four-star, boutique hospitality with legally licensed cannabis hospitality and consumption.”

New Jersey Begins Accepting Cannabis Business Application

New Jersey Begins Accepting Cannabis Business Application

new jersey cannabis application are being accepted now
The Murphy Administration began accepting applications from cannabis growers, product manufacturers and testing labs on Wednesday — the first step that will usher in the legitimate marijuana industry New Jersey voters endorsed in a referendum 13 months ago.

Within four hours of the application portal going live 9 a.m. Wednesday, 500 people had established accounts, Jeff Brown, executive director for the Cannabis Regulatory Commission announced. By the end of the business day, 635 had created accounts, commission spokeswoman Toni-Anne Blake said.

“We are happy to reach this milestone,” Brown said in a statement. “Applications are coming in, the platform is performing well, and we can officially mark the launch of the state’s recreational cannabis industry.”

The commission will start accepting applications for dispensary owners, the retail shops that will sell the cannabis products, on March 15. There are no deadlines; applications will be accepted and reviewed on a continuous basis, the commission said.

Applicants who are owned by women, minorities and veterans will get reviewed and approved first, as well as from those who have been convicted of marijuana offenses and people from poor communities, the commission has said. One of the goals behind legalizing the sale and possession of weed is to lessen the harm on Black and brown people, who have been more than three times more likely to face arrest and conviction than white people, even though usage rates are the same.

Under the cannabis legalization law signed in February by Gov. Phil Murphy, the commission created the Office of Minority, Disabled Veterans, and Women Business Development to promote diversity.

The commission also created a category for Social Equity Business applicants, defined as entities “owned by people who have lived in an economically disadvantaged area or who have convictions for cannabis-related offenses.”

Cannabis Supply Chain Shortages Becoming More Prevalent

Cannabis Supply Chain Shortages Becoming More Prevalent

cannabis supply chain is being impacted
Getting basic materials like ceramics, stainless steel and computer chips from China has gotten so difficult that its about to hit one of the few industries that has so far been insulated from supply-chain woes: U.S. cannabis.

Rolling power outages in China have affected about six out of the 13 components that go into vape hardware made by the Blinc Group, according to Chief Executive Officer Arnaud Dumas de Rauly. There are also widespread problems with shipping. All of this may start affecting the price of cannabis vapes, but on top of all of this, Lunar New Year is coming. With it, disruptions and delays are expected to intensify as workers take long holidays, Dumas de Rauly said.

“I believe this issue will go on at least until the end of May,” Dumas de Rauly told me. “It’s not just vape devices. The raw materials for the equipment that fills them with cannabis, the LEDs for the grow houses — all of it comes from China.” The company has noticed shortages of chip sets, which are used in most technology devices, including those for vaping marijuana.

The cannabis industry has so far been shielded from supply-chain woes because most of it is hyper-local. Since it’s a Schedule I substance,  companies risk legal imbroglios unless they grow and process it in the state where it will be sold. But state-specific supply chains can only protect the industry for so long.

4Front Ventures, a company with operations in California, Illinois, Massachusetts, Michigan and Washington, hasn’t seen shortages of raw materials yet, but is already suffering from shipping delays from items such as vape cartridges and specialty packaging, including tin boxes.

“We’re trying to order ahead — we’re not paying more, but we’re paying up front, also we’ve begun to source domestic pools of inventory,” said Josh Krane, the company’s vice president of operations for California. This November, he made orders and paid deposits for goods that he won’t need until April, May or even June, he told me.

So far, both 4Front and Blinc say they’ve managed to avoid passing costs on to consumers by finding alternate suppliers and prepaying far in advance for orders. Whether consumers see an impact will hinge on the multistate operators and dispensaries that sell the end products. Thanks to market dynamics, however, many of them have some wiggle room.

States Increase Microbusiness Licenses to Combat Multi State Operators

States Increase Microbusiness Licenses to Combat Multi State Operators

more states begin offering microbusiness licenses
More states are offering microbusiness licenses to cannabis entrepreneurs in an effort to diversify a market that some fear could become dominated by large, deep-pocketed multistate operators.

But the jury is still out on how successful such efforts will be.

So far, only three states have issued microbusiness licenses that require less capital to launch and operate a small, plant-touching enterprise: California, Massachusetts and Michigan.

Michigan already is moving to tweak its program to make it easier for microbusiness operators to survive and thrive.

“A lot of states are talking about the microbusiness game, but few have enacted it,” said Ed Keating, co-founder and chief data officer of Cannabiz Media, a Connecticut-based firm that provides licensing data and other business intelligence.

New recreational cannabis states that haven’t yet issued licenses – but have developed microbusiness and/or craft grower programs – include Connecticut, Illinois, New Mexico, New Jersey, New York, Vermont and Virginia.

A draft bill also is in the works in Washington state to provide a “craft cannabis endorsement” designed to allow small, independently owned cultivators and processors to conduct on-site retail sales to individuals 21 and older.

Helping those with less access to capital

The programs have similar goals.

“It’s a way to make the business more accessible to citizens of the state that don’t have access to large amounts of capital,” Keating said.

“It’s often a nod to social equity,” he added, referring to efforts to help entrepreneurs who have been disadvantaged by the war on drugs.

“And it’s also maybe a hedge against big cannabis.”

A microbusiness generally is defined as a small enterprise that employs 10 people or fewer.

San Francisco Suspends Cannabis Tax to Combat Crime

San Francisco Suspends Cannabis Tax to Combat Crime

san francisco cannabis tax removed to fight against crime

San Francisco city officials approved an ordinance suspending the tax it planned to place on cannabis sales, according to multiple reports.

Set to go into effect on Jan. 1, 2020, the 1% to 5% it was going to impose was approved by San Francisco voters in November 2018, the San Francisco Examiner reported.

The decision is due to a rise in illegal sales and increased theft and meant to helping cannabis retailers who have been struggling, trying to compete with illegal cannabis drug dealers.

“Sadly, the illegal market is flourishing by undercutting the prices of legal businesses, which is bad for our economy as illegal businesses pay no taxes while subjecting workers to dangerous conditions and consumers to dangerous products. Now is not the time to impose a new tax on small businesses that are just getting established and trying to compete with illicit operators,” said Supervisor Rafael Mandelman, author of the ordinance, to the San Francisco Examiner.

Last month, a group of armed individuals stole thousands of dollars’ worth of merchandise from a cannabis retailer, BASA, which had already dealt with four thefts, according to the report.

Mandelman said he plans to work with the City Comptroller’s Office, the Treasurer, Tax Collector ‘s Office and the Office of Cannabis for recommendations — including a tax rate and structure — to implement in 2023.

Over 100 towns and villages opt out of New York recreational cannabis

Over 100 towns and villages opt out of New York recreational cannabis

towns and villages opt out of New York recreational cannabis industry
As the pieces begin falling into place to allow the New York recreational cannabis industry to begin operations, some local towns and villages are saying no to legal weed.

New data provided by the Associations of Towns of New York State indicates that around 9% of communities have opted out of the zoning portion of recreational marijuana legalization. How many towns is that? Across the state there are 84 of them that have opted out of both retail sale of marijuana and on-site consumption of cannabis.

The same can be said for villages. Around 9%, or 46 villages in New York have opted out of the law, leaving potentially millions in revenue on the table as New York recreational cannabis expands across the state.

For towns and villages that opt out of the New York recreational cannabis program, businesses will not be able to open if they sell or allow patrons to consume cannabis in their establishments.

There is still time for towns and villages opt out, however it does not look like the majority feel the same as the hundred or so that have already. “At this point, it appears there is not a major wave of opt-outs sweeping across the state,” Chris Anderson, research director for the Association of Towns recently said.

“We expect to see some more activity, but it’s certainly pretty late in the game. We have a good indication now it will be a low opt-out percentage statewide.”

There are hundreds of towns and villages across New York state, with the 120+ that have opted out making up a very small minority. It is likely that these towns and villages will see their surrounding communities generate revenue from recreational business while they miss out.

The towns and villages that have opted out will still have the opportunity to opt in once the New York recreational cannabis industry takes off. However the window for more to opt out is closing as the state gets closer to implementing a legal industry.