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Provisional cannabis licenses in California coming to an end

Provisional cannabis licenses in California coming to an end

provincial cannabis licenses in California news

Thousands of business have been put on a timeline as provisional cannabis licenses in California will be coming to and end in the future.

The end to a longstanding program in the state is going to make entry into the California legal cannabis industry much more difficult for newcomers. However the end to the temporary permit program will impact thousands of legal cannabis businesses across the state.

In fact, this change will impact the majority of California cannabis businesses.

Beginning June 30th, the options for entering the cannabis industry in California will become more limited. Potential newcomers will have two options:

  • Obtain an annual state license
  • Buy an existing licensed company

But obtaining an annual state license in California right now can take months or even years before a new business could begin operations, not to mention the costs of obtaining said license. Buying an existing cannabis company that is already licensed will be a much speedier process, though likely even more costly.

This could mean an increase in merger and acquisition activity in the state. While the end to the provisional cannabis licenses in California is meant to help existing cannabis businesses in the state, it may be too soon to say.

Of the 12,221 marijuana businesses that are currently licensed in California, only 3,378 currently hold annual state licenses. In other words, over 70% of legal cannabis businesses in California are operating with a provisional license.

Compared to annual licenses, provisional cannabis licenses in California have been much easier to obtain. Provisional licenses have acted as an extension of temporary permits that were issued following the passing of Proposition 64. These temporary licenses were originally intended to allow already licensed medical cannabis businesses in the state to sell cannabis recreationally while the state set up the regulated industry.

That was in 2018.

In 2022, the majority of the industry is still operating under provisional licenses for a variety of reasons. However most would likely argue that the costs of obtaining an annual license alone is reason enough.

As it stands, current provisional license holders don’t need to worry. However those looking to apply for a new provisional cannabis license in California will have their first deadline March 31, 2022. These will specifically be license applications for mixed light and indoor cultivation at or less than 22,000 square feet of contiguous premises and outdoor cultivation at or less than 20,000 square feet of contiguous premises.

June 30, 2022 is when the California Department of Cannabis Control is when these licenses must be issued. Starting July 1st, renewing a provisional cannabis license in California will become more difficult, requiring specific conditions. However local equity applicants and smaller cultivations will still be able to apply for provisional cannabis licenses in California through 2023.

January 1, 2026 is the last day that any provisional cannabis licenses can be in effect. In other words, all current provisional cannabis license holders — 70% of current businesses in California — have until this date to obtain an annual state license.

Four years may seem like ample time for the 8,843 provisional license holders in California to make the switch to an annual license. However since Proposition 64 passed, California has been plagued with suffocating bureaucracy, exorbitant fees and costs, strict regulations and other issues that already make it extremely difficult to operate for smaller operations.

The state has allocated $100 million to help the 17 cities and counties with the most marijuana companies to finish transitioning provisionally licensed companies into annual permits. However the annual licensing process is so involved, said attorney Ariana Van Alstine, that some companies have taken years to get theirs. Others are still waiting for their licenses, going back-and-forth with local or state regulators on getting theirs completed or both.

With a priority on transitioning existing provisional cannabis licenses in California, one must hope that the process will run smoothly. Ideally, every provisional license holder will be able to make the switch to an annual license before January 1, 2026.

However if California’s past is to act as any reference, one must also be extremely skeptical.

Massachusetts cannabis tax revenue surpasses Alcohol

Massachusetts cannabis tax revenue surpasses Alcohol

Massachusetts cannabis tax

If there’s any doubt about weed’s popularity, just hit the road  billboards are seemingly everywhere advertising recreational marijuana stores. The numbers back it up, too.

Since adult-use retailers opened in Massachusetts in November 2018, gross total sales have now reached $2.54 billion, according to data from the Cannabis Control Commission.

While tax data shows alcohol consumption is hardly plummeting, the meteoric rise in cannabis use speaks to changing attitudes about recreational alcohol and marijuana use.

“I think that people are looking for an alternative to make them feel better,” said Mikayla Bell, community outreach manager for NETA, one of the largest cannabis retailers in the state. “Oftentimes people are turning to alcohol for relief. And now they found another product with without the hangover, without the calories.”

Bell said the general public is becoming more comfortable with the idea of recreational marijuana, even if they’re not using it themselves.

Data obtained by 5 Investigates reveals plenty of people are consuming it. Take excise taxes, which are levied on both alcohol and marijuana.

Alcohol excise taxes have increased slightly in the past five fiscal years. Halfway through the current fiscal year, Massachusetts has collected $51.3 million so far in alcohol excise taxes.

For the first time, marijuana excise taxes have exceeded alcohol’s. At the same midway point this fiscal year, the state has collected $74.2 million as December 2021.

Thailand legalizes growing cannabis at home

Thailand legalizes growing cannabis at home

Thailand legalizes growing cannabis at home

BANGKOK (Reuters) – Thailand’s narcotics board on Tuesday said it would remove cannabis from its drugs list, paving the way for households to grow the plant.

Thailand became the first Southeast Asian country to legalise marijuana in 2018 for medical use and research.

Under the new rule, people can grow cannabis plants at home after notifying their local government, but the cannabis cannot be used for commercial purposes without further licenses, Health Minister Anutin Charnvirakul told reporters.

The rule must be published in the official Royal Gazette and 120 days must pass before home cannabis plants will become legal.

Meanwhile, the health ministry will this week present to parliament a separate draft bill which provides details on the legal use of cannabis, including its production and commercial use, including guidelines on recreational use.

Homegrown cannabis should be used for medical purposes like traditional medicine, food and drug regulator chief, Paisal Dankhum has said previously and that there would be random inspections.

The draft bill punishes growth of cannabis without notifying the government with a fine of up to 20,000 baht ($605.33) and prescribes a fine of up to 300,000 baht or three years in jail, or both, for selling it without a license.

The move is the latest step in Thailand’s plan to promote cannabis as a cash crop. About a third of its labour force works in agriculture, according to the World Bank.

Best LED Grow Lights for 2022

Best LED Grow Lights for 2022

Best LED grow lights for cannabis

LED grow lights have quickly become a favorite options for growers who want to grow indoors and save energy while still boosting yields and quality.

Can an LED really do all of those things?

Yes!

The main reason that LED grow lights weren’t as popular until recently was mainly due to quality and cost. There is no shortage of cheap LED lights, and there’s just as many that are very expensive.

So which LED grow lights really give the most bang for your buck? Which lights are worth the cost while still delivering a higher standard of quality compared to HPS and CMH lighting?

Here are the top 4 best LED grow lights that you should consider trying in 2022.

Growers Choice ROI E-720 LED

Growers Choice ROI E-720 LED grow light

The Growers Choice ROI E-720 LED grow light has become one of the top selling LEDs over the last year. That’s for good reason.

The ROI-E720 LED grow light was designed with commercial growing operations in mind, but the light can be just as impactful in a small scale setting. The ROI can also be used in the BOOST mode to increase its PPF of 1870 umol/s to 2050 umol/s (approximately 10%).

This light comes in on the higher side of cost compared to your standard 1000w HPS grow light. However the efficiency and energy saving capabilities of the ROI E-720 LED can pay itself in just one cycle.

Luxx 860w LED Pro XR

Luxx 860w LED Pro XR Grow Light

Building off the progress of the 645w LED platform, the Luxx 860w LED Pro XR grow light is the next evolution of LED grow light technology.

It features two additional 100W LED bars to increase total light output and maintain PPFD uniformity over a larger area ensuring consistent growth across 5-6ft tray widths. This light maxes out at 103 degrees Fahrenheit, which is extremely low for the amount of light output the Luxx 860w LED produces.

The 860w can cover a 5×5 or 6×6 area with a 120 degree lens angle for better canopy penetration. This light can replace a 1000w HPS fixture, with better results.

Last but certainly not least, the Luxx 860w LED Pro XR can fold into a 4-bar setup while still running at 860w and can even be dimmed down up to 40%!

Gavita Pro 1700e LED

Gavita Pro 1700e LED grow light

The Gavita Pro 1700e LED is a 645w LED grow light designed by one of the top grow light brands in the world.

Operating with an output of 1700 µmol s-1 PAR, the Pro 1700e delivers broad, intense light coverage with its 8 passively cooled LED bars allowing you to use it in low rooms, vertical racks, over benches, or even in tents.

Gavita is known for their high quality lights that maximize efficiency for their cost. Built with premium Philips drivers, Samsung white LEDs and Osram deep-red LEDs, this fixture uses only the highest-quality components.

Gavita’s master controllers also give you more control over the Pro 1700e LED, from controlling output and dimming the fixture up to 50%, to setting timers and more.

Photobio MX 680w LED

Phantom Photobio 680w LED grow light

The Photobio 680w LED by Phantom took a radical approach to the design of their LED grow light. Phantom looked at the other LEDs on the market and decided to take a different direction.

The result is a 680W fixture delivering 15% more light to your canopy while using 35% less power than a 1000W DE fixture. The Photobio 680w LED abandons the bar style concept of many competitors in favor of a more efficient contiguous circuit board. This difference helps deliver unparalleled PPFD uniformity to the canopy.

The 680w LED’s design is multilayer rack centric, providing the ability to double or triple your canopy square footage within your existing structures footprint. This light is ideal for any grower that is interested in reducing power consumption while simultaneously improving crop performance and yield.

Honorable Mention – Sun System RS 1850 LED

Sun System RS 1850 LED Grow Light

The Sun System RS 1850 LED is a 720w fixture operating at 1850 μmol/s. This 6-rail foldable LED grow light is a great option for anybody looking to get their feet wet with LEDs.

The RS 1850 LED can cover up to a 5’x5′ footprint, but is most efficient in a 4’x4′ configuration. It is DLC listed, IP65 wet-rated and comes complete with a manual digital dimming button and an internal embedded smart controller that is compatible with the Gavita e-Series Controller.

With the controllers, the Sun System RS 1850 LED can daisy-chain up to 500 lights, making it ideal for commercial operations.

New Jersey to become only legal cannabis state to not permit home cultivation

New Jersey to become only legal cannabis state to not permit home cultivation

New jersey home growing will not be permitted with legalization

New Jersey state Senator Nick Scutari (D), the Senate President and a major proponent of cannabis legalization, said he doesn’t see the home cultivation of cannabis coming anytime soon.

New Jersians will not immediately be able to grow their own cannabis, neither for medical nor personal use purposes, the Asbury Park Press reports. During a webinar with cannabis industry professionals, state Sen. Nick Scutari (D), the main proponent of cannabis legalization in the state Senate and the new chamber president, said he does “not see” home cultivation “happening right now.”

“I’m not against marijuana being grown at home for medical purposes and maybe even just recreational purposes. But we’ve got to let this industry … it’s not even off the ground yet.” Scutari said during a press conference.

Currently, the price of medical cannabis in New Jersey runs about $412 to $420 per ounce, according to Curaleaf prices outlined by the Press.

Jo Anne Zito, a board member for the Coalition for Medical Marijuana New Jersey, said allowing patients to grow their own medicine would be “a tremendous help.”

“It doesn’t seem like the sky has fallen in these other places,” she told the Press. “Yeah, some of it may get to the illicit market but I don’t think it’s anything that’s hurting revenue or setting back legal sales.”

Of the 19 states that have legalized cannabis, New Jersey is the only one that does not allow medical patients to grow their own, the report says. Cultivating even one cannabis plant in the state is still punishable by up to five years in prison and a $25,000 fine, despite the state’s legalization law.

Bill filed in Tennessee to regulate and tax CBD and Delta 8 THC

Bill filed in Tennessee to regulate and tax CBD and Delta 8 THC

Tennessee might regulate and tax CBD and Delta 8 THC products

A Republican lawmaker is seeking to tax and regulate the existing cannabis industry in the state.

Rep. Chris Hurt (R-Halls) filed House Bill 1690 this week. The bill seeks to regulate psychotropic hemp-derived cannabinoids, which include products that have more than 0.1 percent THC. (Current federal regulations limit THC to 0.3 percent.) That includes products containing the newly popular Delta-8 THC but not pure CBD products, which do not contain THC.

As a member of the Agriculture and Natural Resources Committee, a former hemp farmer and current co-owner of CBD ProCare — a CBD company in Dyersburg — Hurt says he filed the bill in an effort to “legitimize the industry.”

According to Hurt and Joe Kirkpatrick of the Tennessee Growers Coalition, who collaborated with Hurt on the writing of the bill, no other state has legislation that specifically taxes and limits the sale of hemp-derived cannabidiol products.

“People think that Tennessee is the last to do anything when it comes to the hemp industry,” Kirkpatrick says, “but they are forgetting that Tennessee was the first state to allow and define smokable hemp and the first state to allow the feeding of hemp to livestock.”

HB1690 would do three things: create a licensing requirement for retailers and wholesalers, establish a 6.6-percent excise tax on the wholesale of hemp-derived cannabinoids and limit sale of psychotropic hemp-derived products like Delta-8 to those 21 and older.

The bill would require retailers and wholesalers to apply for an annual $200 license through the Tennessee Department of Agriculture. Based on the licensing structure outlined, Kirkpatrick says he would expect the state to collect $160,000 annually in fees. (The legislative Fiscal Review Committee has not yet analyzed the potential economic impact of the legislation.) Licenses could be revoked or suspended at the discretion of the Department of Agriculture.

Kirkpatrick estimates that the proposed 6.6 percent tax, modeled after the tax on tobacco, could generate as much as $4-5 million in annual revenue for the state. Hurt and Kirkpatrick would like to see the money collected from licensing and the wholesale tax used to increase the resources at the Department of Agriculture to ensure product safety.