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Connecticut cannabis retail license applications surpass 15,000

by Travis C | May 9, 2022 | Blog, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Industry News, Legalization

Over 15,000 thousand people submitted applications for Connecticut cannabis cultivation licenses before the deadline this week. However the state is only handing out about a dozen licenses to start.

The state reported on Friday that they received over 8,000 applications just for the six social equity licenses they will be handing out. Additionally the state received another 7,000 applications for the general lottery.

The general lottery pool will reward adult-use Connecticut cannabis retail licenses.

The first lottery for social equity applicants seeking Connecticut cannabis retail licenses is expected to happen this week. After being chosen, the applicants will still need to be reviewed for eligibility before the general lottery can proceed.

There was no limit placed on how many applications one person could submit, making it likely that multiple applications were submitted on behalf of one individual. The large number of applications for so few licenses could be explained in part by this factor.

An additional 1,800 applications were submitted for micro-cultivator licenses. This license allows a licensee to grow in spaces between 2,000 and 10,000 square feet (3,048 meters). Other Connecticut cannabis retail licenses will be available to sell medical marijuana, operate delivery services, make cannabis infused food and beverages and other cannabis products, as well as package and transport products.

Connecticut legalized adult-use cannabis last July. The law allows residents over the age of 21 to legally possess up to 1.5 ounces of marijuana, or up to 5 ounces locked at home or in a vehicle’s glove box or trunk.

But retail recreational cannabis stores are not expected to begin operating in the state until late this year at the earliest.

Is the FDA cracking down on Delta 8 THC?

by Travis C | May 6, 2022 | 420 Culture & Travel, Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Cannabis Science, Culture, Hemp, Hemp Law, Industry News, Legalization

Delta 8 THC gummies under scrutiny from FDA

The FDA recently issued warning letters to several companies for selling Delta 8 THC gummies and other Delta 8 THC products. Is a crackdown coming?

On May 4 of this year, the FDA issued five warning letters to Delta 8 THC retailers. It is not uncommon for the FDA to send warning letters to companies that could be making false medical claims about their products.

But this is the first time the FDA gas written warning letters specifically to Delta 8 THC companies.

The FDA has also released a consumer advisory warning on their official website regarding Delta 8 THC gummies and other Delta 8 THC products. In other words, D8 has been on the FDA’s radar for some time.

It is possible that more scrutiny could be coming down on the Delta 8 THC industry, which is mostly unregulated at the moment.

The FDA is approaching Delta 8 similarly to how they deal with CBD and other hemp products. The Farm Bill passed in 2018 legalized “industrial hemp” on the federal level. Under the ruling any cannabis plant that has lower than .3% THC on a dry weight basis is legal to possess, grow and sell across state lines.

The Farm Bill is responsible for the rapid expansion of the CBD industry, and D8 is a product made from CBD in most cases.

This association implies that Delta 8 THC should be legal as it comes from the hemp plant and CBD, both of which are legal. Despite the size of the CBD industry, it still lacks proper oversight from the FDA. What the FDA will do is devote a limited amount of agency resources to enforce against companies making medical claims about their products.

Legally, a CBD company can’t put any sort of medical benefits on the label or marketing for their products. This is because the FDA doesn’t recognize CBD as a medical supplement. They don’t recognize D8 either.

Delta 8 THC FDA Warning Letters

The five letter issued by the FDA went specifically to companies that were making “misleading claims” about medicinal benefits in D8 products. In their letters to the companies the FDA included the claims that were made. Here are a few examples:

“Delta-8 consumers report many of the same effects as THC, such as . . . relief from some symptoms such as pain . . .. Delta-8 can also help with insomnia.”
“Delta-8 THC Syrup from Kingdom Harvest is ideal for anybody experiencing a sleeping disorder or other ailments looking to be relieved.”
“If you have cancer, rheumatoid arthritis, and migraines, Delta-8 THC can help alleviate the pain because it has immunosuppressant properties.”

According to the FDA, the presence of drug claims on the products technically classifies them as unapproved new drugs. Under the FDCA (Federal Food, Drug, and Cosmetic Act), new drugs may not be introduced into interstate commerce without being approved by the FDA. Because the products were not approved, they are technically illegal under the FDCA.

So does this mean that D8 gummies are going away any time soon? Unlikely.

Misleading branding

Misleading branding is nothing new to the cannabis industry. The illicit market is flooded with knockoff D8 products that are imitating popular brands like Doritos, or making Delta 8 THC gummies that look like Haribo gummy bears. Because the market isn’t regulated, there is very little oversight to keep these products off the market.

While some big companies like Skittles have fought back against their likeness being used in Delta 8 THC products, most don’t even know that their likeness is being used. When a customer sees a name-brand logo on a pack of Delta 8 THC gummies, unsurprisingly they are more likely to think it is a legitimate product.

Additionally, no D8 products are approved by the FDA as generally recognized as safe (GRAS). Due to this Delta 8 is not approved for use in human or animal products because the required safety data is lacking.

Because the ingredient in the products is not approved, any D8 product is technically “adulterated”, and cannot be sold over state lines. However anybody who has looked up Delta 8 THC gummies online was still probably able to have them shipped from a different state.

While it appears the FDA is beginning to look at D8 more closely, there is still no determining evaluation by the FDA deciding its true legality. Delta 8 THC may be a legal byproduct of industrial hemp, but adding it into food items and supplements is where the lines get blurry.

For this reason, one should always be extremely weary of any D8 product that makes a medical claim or markets the product to have specific benefits. There is no way to verify their claims, and they could be completely false.

The FDA is still devoting very limited resourced to enforcing rules against Delta 8 THC retailers. They have only sent out five letters, when there are thousands of Delta 8 THC gummies and other products being sold online across the country daily.

The longer it takes the FDA to reign in CBD and D8, the more out of control the market could become, making it too large to reign back in and increasing risk for consumers.

Connecticut cannabis gifting law pushed forward by lawmakers

by Travis C | May 2, 2022 | 420 Culture & Travel, Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Culture, Industry News, Legalization, Politics

Connecticut cannabis gifting could be banned

The underground Connecticut cannabis gifting community could be in for some trouble is legislators in the state get their way.

In a 98-48 vote, the Connecticut House of Representatives pushed forward legislation that would fine anybody who host a cannabis gifting event up to thousands of dollars. During the session, others argued that legalizing cannabis in Connecticut at all was a mistake that should be reverted.

Suffice to say there is disagreement in the legislature about the future of the industry in Connecticut, and it is going to have an impact on the industry there.

As it currently stands, cannabis is legal to possess for adults in Connecticut. However recreational cultivation for personal use won’t be an option until July 2023, and there is no regulated industry to speak of in the state.

In other words, cannabis is legal. It just can’t be grown recreationally or bought anywhere unless you’re a licensed medical cannabis patient. This has predictably created an underground market for those looking to obtain cannabis for personal consumption without a medical card.

What is cannabis gifting?

Cannabis gifting is by no means a new practice. It also isn’t exclusive to just Connecticut.

For example Washington D.C. legalized cannabis in 2015, but still doesn’t have a regulated industry due to barriers put in place by politicians during the legislative process. Now there is a thriving cannabis gifting industry in DC, with small shops tucked away across the city. There you can pay $45 for a sticker and receive an eighth of cannabis as a “gift”.

The donation/gifting method acts as a loophole under most cannabis laws that prohibit the illicit sale of cannabis outside of a licenses retailer. By gifting cannabis instead, it technically isn’t being sold and can’t be prosecuted.

It isn’t difficult to see why politicians would not be in favor of such a practice.

But with the current laws and delays in Connecticut, it was inevitable.

Some legislators are shaping the new bill not as a total restriction on cannabis gifting, but just organized events according to Democrat Rep. Michael D’Agostino.

“For right now, these bazaars are a way around the regulated marketplace,” D’Agostino said. As co-chairman of the legislative General Law Committee, he stressed that the bill would not prohibit true gifting events in which friends or acquaintances exchange or give each other cannabis without commercial transactions.

The legislation was originally proposed in response to events like the High Bazaar. There more than 1,000 visitors paid $20 or so to enter a warehouse in an industrial zone, where dozens of vendor tables would display cannabis in various forms, exchanging cash or other items of value for cannabis products.

Under the bill, those who sponsor these large gifting parties could be fined $1,000 by the state Department of Emergency Services and Public Protection, and as much as $1,000 by local officials. The legislation isn’t entirely bad however.

The legislation also includes provisions to end the annual fees required of patients in the medical-marijuana program, saving patients about $5 million a year starting July 1, 2023. It would also permit physicians to write medical cannabis prescriptions, which would save patients more money and time.

The law also includes provisions strictly limited billboard advertising for cannabis companies, and completely bans it for out of state brands. Lastly, current cannabis cultivators would be allowed to undertake two more joint ventures, and towns and cities that are willing to host cannabis businesses, can now decide which businesses and how many could locate to their area.

Overall the legislation would appear to have more good than bad, with the main negative being the impacts on large cannabis gifting events. Small gathering of friends gifting each other cannabis products will still be allowed without repercussion. Medical cannabis patients will have quicker and more affordable access to their medicine, and in-state retailers will no longer have to worry about out of state competition.

Oklahoma cannabis legalization may be on November ballot

by Travis C | Apr 25, 2022 | Blog, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Culture, Industry News, Legalization, Medical Marijuana

Oklahoma cannabis legalization petition getting signatures

The Oklahoma Supreme Court has approved plans for Oklahoma cannabis legalization to move forward in the state. The plan’s organizers can now begin collecting signatures.

There are currently two separate proposals for Oklahoma cannabis legalization, and both would need to gather enough signatures to end up on the ballot this November.

The approved plans, State Question 819 and State Question 818, would make an amendment to the state’s Constitution to protect the right of residents age 21 and older to use cannabis.

SQ 818, known as the Oklahoma Medical Marijuana Enforcement and Anti-Corruption Act, would expand the state’s medical cannabis program. It would establish a new state agency known as the Oklahoma State Cannabis Commission (OSCC).

This agency would replace the current Oklahoma Medical Marijuana Authority (OMMA) and oversee the entire cannabis industry including hemp.

This bill replaces the excise tax on medical cannabis with a 7% retail tax. Revenue would be used to support cannabis research, rural impact and urban waste remediation, agriculture development, mental health response programs, substance misuse treatment and more.

SQ 819, otherwise known as the Oklahoma Marijuana Regulation and Right to Use Act, would legalize possession of up to eight ounces of cannabis for anyone over the age of 21.

Adults could purchase cannabis from a retail store, or grow up to 12 plants for personal use. Any home grower is legally allowed to possess however much they harvest from their 12 plants.

Recreational cannabis sales would be taxed at 15%. A number of state initiatives would receive a portion of the tax funds collected from Oklahoma cannabis legalization. These include water-related infrastructure, disability assistance, substance misuse treatment, law enforcement training, cannabis research and more.

Lastly, SQ 819 would open up pathways for resentencing and expungements for those with prior and current cannabis convictions.

If passed, Oklahoma would become the 19th state in the US to legalize cannabis recreationally. In order to make it onto the ballot, supporters are going to need to gather about 178,000 signatures in the next 90 days.

Despite being on of the reddest states in the country, Oklahoma cannabis legalization isn’t a very far fetched idea for the state. In fact, nearly 10% of Oklahoma’s 4 million residents have qualified a medical cannabis card, the highest in the country.

“Whether we’ll get on the November ballot this year remains to be seen,” said Jed Green, a longtime Oklahoma cannabis activist behind the plans. “We’re going to push, push and push to get it done, and hopefully we do, but … we’ll get our signatures.”

A separate adult-use proposal, State Question 820, already has been cleared by the high court and because it would only amend state statute, requires only about 95,000 signatures. Supporters of that plan can begin gathering signatures on May 3.

Virginia recreational cannabis could be going up in smoke

by Travis C | Apr 18, 2022 | Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Growing, Industry News, Legalization, Marijuana, Medical Marijuana, Politics

Virginia recreational cannabis dispensaries

When Glen Youngkin was elected Governor of Virginia after a heated race in 2021, many cannabis advocates began to question the future of Virginia recreational cannabis. Despite legalizing cannabis for recreational use earlier in the year, the state has yet to get the industry rolling in any real way.

It isn’t uncommon for a state to take more than a year or two to establish their regulatory framework and begin adult-use sales. However in Virginia’s case, cannabis was legalized by a Democrat governor, who was soon replaced by a Republican.

Youngkin holds a different view on cannabis compared to his predecessor, and now those views have begun impacting the future prospects of a recreational cannabis industry in Virginia.

On April 7, 2021, Virginia became the first state in the South to begin the process of legalizing adult-use cannabis. HB2312 (Herring) and SB1406 (Ebbin; Lucas), introduced by Governor Northam and passed by the 2021 General Assembly, lay out a three year process to legalize cannabis and create a regulatory framework for the sale of the product.

However while a recent General Assembly session saw lawmakers increase accessibility for medical cannabis patients, it failed to expedite Virginia recreational cannabis sales, and added new penalties for cannabis possession. So what happened?

The original bill as previously mentioned included a three-year timeline to implement regulations and framework for a recreational cannabis industry. The latest General Assembly session was voting on whether to shorten this timeframe, which would have expedited retail cannabis sales to this September.

However with the latest amendments to the original bills, it is unlikely that a Virginia recreational cannabis industry will be open by the original 2024 deadline.

Lobbyists influenced Virginia legislators into believing that it is safer for several large corporations to produce the products rather than having hundreds of small batch operations, according to Happy Trees co-founder Josiah Ickes. Happy Trees is a garden store supplying cannabis growers in the state.

“We have all these small breweries in Richmond,” Ickes said. “It would be kinda like if we said: ‘Oh, well look at all these small breweries, they need to go away because we don’t know if they’re creating safe beer.’”

Virginians will still be able to possess up to two ounces of cannabis flower for personal use without penalty. For comparison, in Colorado where cannabis has been legal since 2012, consumers are only allowed one ounce in their possession at a time.

Those who aren’t waiting for a legal cannabis industry to open up also have the option to grow their own cannabis. With the current framework and delay of a recreational industry, it is likely that a gift/donation industry will begin to develop in Virginia.

Coincidentally Virginia borders Washington, D.C., where cannabis is also legal but has no established industry. DC now has a thriving gift/donation industry where consumers will donate a certain amount in exchange for a gift (in the form of cannabis), creating a loophole where technically there isn’t a “sale” of cannabis happening.

There have been plenty of efforts to shut down this grey area industry, but efforts thus far have failed. With a successful market right next door, Virginians are likely to replicate these practices so people can still buy and sell their cannabis without technically breaking the law.

One of the positives to come out of the latest General Assembly meeting was regarding medical cannabis patients and their access to the products they need. Governor Youngkin recently signed new legislation which eliminated the requirement to register with the state Board of Pharmacy before being approved to purchase medical cannabis products.

Would be Virginia medical cannabis patients already have to get a referral from a medical provider in order to get access to cannabis. The latest amendment would appear to be simply removing an unnecessary step for patients.

When lawmakers originally approved the sale of low-concentration THC oil for medical patients in 2019, the Board of Pharmacy issued just 1,377 medical cannabis cards. That number grew to 7,135 in 2020, and ballooned to over 33,000 in 2021. The Board has issued over 10,000 cards from January to April 2022 already.

Brandy, a resident of Richmond, VA began smoking cannabis at age 15. Now 37, she grows plants in her home. Citizens can grow up to four plants legally per household.

Brandy has a state-approved prescription for cannabis to treat anxiety and bipolar disorder, but said she prefers growing cannabis as opposed to going to a dispensary, because it’s cheaper. Health insurance does not cover medical cannabis.

“In Virginia, it really sucks,” Brandy said. “You go in and they have the little half gram carts, and it’s $65.”

With a retail market still not established, Brandy said she prefers growing her own supply versus buying illegally from a dealer.

“This way I know exactly what goes in it,” Brandy said. “It’s all organic product, there isn’t chemicals in it.”

Currently there are only four state-licensed medical cannabis companies that can provide cannabis to patients in five health districts across Virginia. There are still several health districts that don’t have a single dispensary, making patients have to travel long distances to get their medicine.

Limited access, expensive pricing and the lack of a legal industry has put Virginia on a path that is leaving many unsure of the future of Virginia recreational cannabis. One can safely assume that there won’t a regulated, adult-use cannabis industry in the state until at least 2024.

However one can also expect to start seeing some semblance of an underground, grey market cannabis industry develop as consumers find ways to sell and purchase recreational cannabis without breaking the specific rules of the law.

First New York cannabis dispensaries to open on tribal land

by Travis C | Apr 12, 2022 | 420 Culture & Travel, Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Culture, Industry News, Legalization

The New York legal cannabis industry may be delayed by politicians and bureaucracy, but that isn’t stopping Native tribes from rolling out their own markets.

The Saint Regis Mohawk Tribe based in Akwesasne will be the first to launch a regulated cannabis market in New York state. Beginning April 15, several Tribal businesses will open their doors to sell cannabis flower, edibles and other cannabis products to consumers.

The Tribe is able to do so thanks to their Adult Use Cannabis Ordinance. The ordinance states that adults 21 years old or older can transport, possess, and use up to three ounces of cannabis and up to 24 grams of concentrated cannabis.

Once New York legalized cannabis officially in 2020, the option to legalize the plant on tribal lands became more enticing. Not beholden to state laws and regulations regarding the plant, the Tribe was free to establish their own regulatory framework to permit sales and possession.

The Saint Regis Mohawk Tribe is also the first in the country to regulate and license tribal member-owned businesses for cannabis.

According to the Tribe, licensing fees collected from legal cannabis operations will be used to keep community members employed and fund a wide range of community services. Additionally the funds will help support educational scholarships, public safety, road maintenance, elder assistance, health care, and community organizations.

Tribal Chief Michael Conners said he believes the system will benefit the community while providing a safe product for consumers.

“We are confident that the hard work of the tribally licensed cannabis business owners will result in loyal customers from beyond Akwesasne,” Conners said. “We know that it took a while, but we are confident that our system is designed to provide quality product, in a regulated system, with Compliance oversight and a qualified Board of Managers to see that all regulations are followed for the safety of our community and consumers.”