Cannabis Law and Compliance Archives - Page 20 of 37

Michigan Governor Signs Legislation to Regulate Delta-8 THC

by The Real Dirt | Jul 14, 2021 | 420 News, Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Hemp Law, Industry News, Legalization

MICHIGAN — Today Gov. Whitmer signed legislation that will regulate, and cover delta-8 THC derived starting October 11, 2021.

This bill will update definitions regarding cannabis plant products making sure all intoxicating substances will be safety-tested and tracked through the MRA’s statewide monitoring system Michigan Executive Office of the Governor.

“This package of bills continues to show Michigan is the model for the nation in regard to protecting its residents and making sure that those who consume marijuana products do so in a safe manner,” said Gov. Whitmer. “I am glad to see Michigan continuing to lead on the implementation and regulation of a safe, secure marijuana industry, which has already brought tens of millions of dollars in new tax revenue to the state, as well as thousands of well-paying jobs.”

“The team at the MRA has always been committed to transparency and forward thinking and this was once again the case regarding delta-8,” said MRA Executive Director Andrew Brisbo. “We were proud to work with legislators and industry stakeholders to pro-actively address this issue and move an untested, unlicensed intoxicating synthetic product into our licensed and regulated system.”

“The voters of Michigan chose to legalize and regulate marijuana in the interests of justice and public health,” said Rep. Yousef Rabhi, D-Ann Arbor. “We know that banning these substances is not the best way to keep the public safe. But we also know that these psychoactive compounds are currently being sold with no public health standards to anyone, regardless of age. Instead of allowing these new hemp derivatives like Delta 8 to circumvent our world-class regulated system, this new law will apply the same rigorous testing and commercial standards that currently protect consumer safety in the legal marijuana marketplace.”

“I appreciate the support of Governor Whitmer and my legislative partner Representative Rabhi in helping Michigan take an important step in streamlining regulations for the safety of cannabis businesses and people around our state,” said Rep. Jim Lilly, R-Park Twp. “By mirroring Michigan’s existing liquor dram shop law and clearly defining the requirements for a proper injury lawsuit, we are bringing clarity to a previously murky area of our cannabis laws. I am extremely excited to see the Governor not only sign these bills, but also sign bills to protect Michigander’s from unregulated and untested Delta-8 hemp products. This legislation does the right thing by taking these products out of the unregulated marketplace and bringing them under the purview of a well-functioning Marijuana Regulatory Agency.”

Read Full Story on Fox 17 West Michigan

Is Delta-8 THC Safe?

by Travis C | Jul 13, 2021 | 420 Culture & Travel, Blog, Broscience Mythbusters, Cannabis Law and Compliance, Science & Technology

If you’re a cannabis or Hemp/CBD consumer, you have more than likely heard of Delta-8 THC. But is Delta 8 THC safe?

Fourteen states — Alaska, Arizona, Arkansas, Colorado, Delaware, Idaho, Iowa, Kentucky, Mississippi, Montana, New York, Rhode Island, Vermont and Utah — have already banned Delta-8. For a consumer looking to possibly try Delta 8 for the first time, this could be a cause for concern.

If Delta 8 was totally safe, then why would states be banning it en masse? That’s what we’re going to break down.

The answer to the question, “is delta 8 THC safe?” isn’t so black and white. Just like a couple years ago when many were unsure about the safety of CBD products, D8 THC is in a similar phase.

Is Delta 8 THC safe to consume?

The short answer is we don’t know. That is partially the reason that so many states have already moved to make it illegal. With zero — and we mean zero — regulation, it is much easier to just ban Delta 8 than go through the same process as CBD.

To clarify, CBD has had a rocky road over the last few years. After the passing of the Farm Bill in 2018, all hemp and its derivatives (aside from Delta 9 THC) became fully legal. CBD, CBG, CBN and others all became legal at this time, which sparked the CBD movement.

As soon as the CBD industry began exploding, the FDA was forced into action. Regulating the safety of consumable CBD products like gummies, ointments or other topicals was essential. While some states decided to ban CBD altogether like some are doing now with Delta 8, most saw the growing market and recognized that regulation was necessary.

However CBD does not create a psychoactive effect like Delta 8 does, nor is it synthetically derived. And that’s where the issues with Delta 8 arise.

How Delta 8 THC is made

CBD has been bred into hemp in higher concentrations over the last few years, which is then extracted to make various products. Delta 8 exists in such small traces in hemp and cannabis that it can’t be extracted on its own and produces negligible results.

Due to this, Delta 8 is actually made through the synthetic conversion of CBD.

The process of creating Delta 8 from CBD is nothing new, and is actually a patented isomerization process. It involves dissolving CBD in a solvent like heptane. An acid is then added into the solution and stirred constantly up to 18 hours on a heat plate. Once the chemical reaction is complete it will separate, where it can then be washed and dried and tested.

Compared to how your average Delta-9 extract is made, Delta-8 is a more lengthy, “synthetic” process. That can be a turn off for a lot of people.

The new “spice”?

We see you clenching your fists about to throw your phone from reading that title. No, we don’t believe that Delta 8 THC is as dangerous as spice. But that doesn’t mean it doesn’t have the potential to be just as dangerous.

You may remember in 2019 when hundreds of people wound up in the hospital (and several actually dying) due to dangerous chemicals being cut into illicit, black market vaporizer cartridges. Vape cartridges are currently the most popular way to consume Delta 8, and they are completely unregulated just like illegal cartridges sold on the street.

It is not inconceivable that a producer looking to cut costs and make more money could cut their products with something potentially dangerous to consumers. And that is the risk that many take when they place an order from an online Delta 8 THC retailer.

So is Delta 8 THC safe? Let’s be real here. It is just as likely that a consumer might get an unsafe distillate cartridge on the street as you are to get a dangerous Delta 8 product from a “reputable” online Delta 8 retailer. That’s the reality.

Some states might start treating Delta 8 like CBD in the future, regulate it and make it safe. There’s also the chance that federal government, such as the DEA or FDA gets involved. Similarly to states with cannabis legalization, Delta 8 could also be made legal on a state by state basis. Some argue it is already legal.

In other words the safety, legality and trustworthiness of Delta 8 THC products is anybody’s guess. And guessing is exactly what you do when order some Delta 8 online or grab it from the head shop.

$1.19 billion worth of marijuana seized in California bust

by The Real Dirt | Jul 8, 2021 | 420 News, Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Industry News, Legalization

Authorities in Southern California have seized more than 16 tons of marijuana worth an estimated $1.19 billion, Los Angeles County Sheriff’s Department officials said Wednesday. The 10-day sting is the largest eradication of illegal marijuana cultivations in the history of the department.

The operation, which began on June 8, resulted in 22 felony arrests, 109 misdemeanor arrests, and 19 arrests from water theft enforcement teams, officials said. More than 200 locations were served with search warrants. Nearly 375,000 marijuana plants and 33,480 pounds of harvested marijuana were seized, along with 65 vehicles, 180 animals and $28,000.

Officials say they believe international cartels are behind the illegal large-scale marijuana farms.

“We’re talking about the cartels,” Lancaster, California, Mayor Rex Parris said at a Wednesday press conference. “We are not talking about mom and pop people selling marijuana that they grew in their backyard. This is the cartels. We are very very close to driving down the freeway and seeing bodies hanging from the overpasses. That is what’s coming.”

While California legalized the recreational use of marijuana in 2018, illegal grows of the crop have been on the rise in the state. Detectives from the Los Angeles County Sheriff’s Narcotic Bureau identified over 500 illegal marijuana cultivations in 2021, increasing from the 150 identified in 2020, according to a June statement. Detectives found that the average size per cultivation at farms increased to 15 greenhouses, up from eight per farm in the year prior.

“What we want to do is send a clear and loud message to the cartels and anyone doing an illegal operation in the high desert: Your days are over and we’re coming for you,” said Los Angeles County Sheriff Alex Villanueva.

Los Angeles County Supervisor Kathryn Barger said the impacts of illegal marijuana cultivation by cartels include water theft, human trafficking, pollution and threats to safety and security.

“This illegal activity is impacting the quality of life for residents and businesses and if left unaddressed will have long lasting and devastating affects in the region,” Barger said.

She called on the district attorney to prosecute those arrested in the operation. Villanueva said that he will share the district attorney’s prosecution decision publicly once it’s made available.

“This is an issue that is plaguing, and will continue to plague, if we do not make it very uncomfortable and one way to make it uncomfortable is to prosecute,” Barger said.

Original Story from CBS News

Rhode Island Cannabis Legalization Bill Under Consideration

by The Real Dirt | Jul 7, 2021 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Legalization, Politics

rhode island cannabis legalization being considered by house

On Tuesday, the RI House of Representatives Committee on Finance examined legislation that would legalize recreational cannabis use for adults, with legislators and the public showing strong support for the bill and contemplating how it could be improved. The proposal in the House differs from the Senate’s recently passed, similar legislation in a number of key areas, including automatic expungement for past cannabis offenses and oversight and impact fees to be paid to municipalities where retail stores open.

“I try to take input from a lot of the stakeholders in the cannabis world,” said sponsoring representative Scott A. Slater (D-Dist. 10, Providence). “Patients, caregivers, cultivators, existing compassion centers and the Rhode Island League of Cities and Towns. I try to take everyone’s input and compromise the best piece of legislation that I can for a legal, adult-use, recreational cannabis program.”

The legislation, if approved in the House and signed into law, would legalize cannabis in the state, allowing possession up to one ounce by individuals over the age of 21. It also allows for home grow comparable to neighboring Massachusetts, with adults being able to grow up to 12 plants, with six active plants at any given time.

Fifteen recreational cannabis licenses would be made available if the legislation is approved, with five of those being designated for equity applicants. Three of the licenses would go to the state’s three existing compassion centers and seven new licenses would be up for grabs, with one of those slots set aside for a co-op business.

“We can work on the number of retail [licenses],” said Slater. “I’m open to adjusting that number. I think it’s important.”

“What I’ve found is that we have people, small businesses, our constituents, investing their money and there was no market for them,” he continued, speaking to the state’s expansion of medical marijuana access in recent years. “They got their licenses, they paid their fees, they did all the right things and I feel that we oversaturated the market and I don’t want to do that again.”

Last week, the RI Senate passed similar legislation, though Slater said his bill bears some significant differences.

The first, said Slater, is that past cannabis-related offenses, both misdemeanors and felonies, would be automatically expunged if the legislation is approved. The Senate bill also offers expungement for past cannabis offenses, though that bill lays out a process to apply for expungement. Further, Slater’s bill would not create a five-member cannabis control commission as in the Senate’s version, but would leave oversight to the state’s Department of Business Regulation.

“My bill leaves the regulation to DBR, which has been doing a good job to authorize and promulgate regulations to effectuate the legislation,” said Slater.

Read Full Story on RI Central

California Lawmakers Approve Bill To Legalize Psychedelics Possession

by The Real Dirt | Jul 2, 2021 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Culture, Politics

California psychedelics possession has been legalized by legislators

A California Assembly committee on Tuesday approved a Senate-passed bill to legalize possession of psychedelics, clearing its first major hurdle in the chamber.

The Assembly Public Safety Committee advanced the legislation, sponsored by Sen. Scott Wiener (D), in a 5-3 vote.

This comes one day after the senator held a rally with military veterans, law enforcement and health officials to build support for the proposal.

SB 519 would remove criminal penalties for possessing or sharing numerous psychedelics—including psilocybin mushrooms, DMT, ibogaine, LSD and MDMA—for adults 21 and older.

The sponsor supported a committee amendment that removed ketamine from the list of psychedelics included in the reform. That’s in addition to a series of technical revisions that were made to the legislation.

The full Senate approved the bill earlier this month, and it still has two more Assembly panel stops—the Public Health and Appropriations Committees—before moving to the floor and then, potentially, to the governor’s desk.

“Under SB 519, we will no longer arrest people and incarcerate them for the simple personal possession of psychedelics for personal or shared use,” Wiener told the committee on Tuesday. “That’s really the question here: Do we believe that we should be arresting someone because they possess psychedelics for personal use? I don’t think we should. Frankly, I think most people don’t think we should be doing that.”

A California Assembly committee on Tuesday approved a Senate-passed bill to legalize possession of psychedelics, clearing its first major hurdle in the chamber.

The Assembly Public Safety Committee advanced the legislation, sponsored by Sen. Scott Wiener (D), in a 5-3 vote.

This comes one day after the senator held a rally with military veterans, law enforcement and health officials to build support for the proposal.

SB 519 would remove criminal penalties for possessing or sharing numerous psychedelics—including psilocybin mushrooms, DMT, ibogaine, LSD and MDMA—for adults 21 and older.

The sponsor supported a committee amendment that removed ketamine from the list of psychedelics included in the reform. That’s in addition to a series of technical revisions that were made to the legislation.

The full Senate approved the bill earlier this month, and it still has two more Assembly panel stops—the Public Health and Appropriations Committees—before moving to the floor and then, potentially, to the governor’s desk.

“Under SB 519, we will no longer arrest people and incarcerate them for the simple personal possession of psychedelics for personal or shared use,” Wiener told the committee on Tuesday. “That’s really the question here: Do we believe that we should be arresting someone because they possess psychedelics for personal use? I don’t think we should. Frankly, I think most people don’t think we should be doing that.”

Wiener has described its prospects going forward as “very challenging,” but he made the case at Monday’s press event that it is a necessary policy change to advance mental health reform and end criminalization.

Under the measure, the state Department of Public Health would be required to establish a working group “to study and make recommendations regarding possible regulatory systems that California could adopt to promote safe and equitable access to certain substances in permitted legal contexts.” Those recommendations would be due by January 1, 2024.

For psilocybin specifically, the legislation would repeal provisions in California statute that prohibit the cultivation or transportation of “any spores or mycelium capable of producing mushrooms or other material” that contain the psychoactive ingredient.

The bill originally included record sealing and resentencing provisions for people previously convicted of psychedelics possession offenses, but that language was removed in its last committee stop prior to the Senate floor vote as part of an amendment from the sponsor.

Read Full Story on Marijuana Moment

The Most Common Cannabis Compliance Issues

by Travis C | Jul 1, 2021 | Blog, Business, Cannabis Law, Cannabis Law and Compliance, Hemp Law, Legalization, Medical Marijuana

Operating in a legal cannabis industry, whether recreational or medical, comes with strict regulations that requires compliance for businesses. Underestimating the level of cannabis compliance has led to the downfall of many new cannabis businesses.

Cannabis compliance is more than just meeting required plant counts or ensuring safe working conditions for employees. Every industry is regulated in some form, however the cannabis industry lacks any form of federal regulations.

Without any federal oversight, states are left to create their own regulations and cannabis compliance requirements. These requirements vary widely by state, making operating in multiple states more challenging.

There are some common cannabis compliance requirements that any business owner will have dealt with at some point. However there are others that a new business owner may overlook. This can have drastic consequences, such as removal of an operating license, extreme fines, or even being shut down completely.

Licensing

Cannabis licensing is typically the first step any would-be business owner takes. Each state varies in how they handle licensing, from application fees and financial requirements to how many total licenses are given out.

Pricing alone is large barrier to entry for many, with some states like California charging higher and higher license fees the larger a business’ revenue. Others may just charge a flat fee for all licenses, but the fee is also high, and recurs annually.

Common licenses include manufacturing, retail, dispensary, and cultivation. Cannabis businesses need to know what’s required in their state and when to get their licenses and permits renewed. Having an expired or illegitimate license or permit can result in hefty fines and a risk of closure.

It isn’t just the business that has to be licensed either in many states. Employees are typically also required to have specific licensing to work in a cannabis business.

Cultivation

From plant limits to seed to sale tracking, every state can implement different cannabis compliance requirements for cultivation facilities and farms. This can include mandatory reporting of water usage and run-off, pesticide restrictions, limited employees permitted in the grow, and tracking such as METRC.

Justin Jones from Greener Consulting Group opened the first recreational cannabis dispensary in Denver, Colorado. He was also one of the first growers in the country to implement METRC tracking in his grow.

In the past, growers just grew. Today’s growers need real management skills in the highly regulated legal markets and just as much time is spent meeting compliance requirements as is spent growing the plants themselves. It is a complete turn around from the past. Programs like METRC that were resisted at first, have now become tools for improving your business and collecting data on production, potency, testing and more.

Justin Jones

There is no worse feeling for a grower than going through an entire season and having it thrown out or being fined an exorbitant amount for failing to adhere to cultivation compliance requirements.

Cannabis Testing

Testing requirements for cannabis cultivators and processors has been a hot button issue in the legal cannabis industry. Due to lack to federal regulation there is no federal guidance or requirements for cannabis products, again leaving the decision to the states.

While every state will have testing requirements in order to prove the potency and safety of cannabis products, the requirements can vary and the labs that do the testing can vary as well. One lab might only test for cannabinoids, while another may test for terpenes and heavy metals as well.

The majority of the time, these labs are not state-run either, which can lead to some shady business transactions between labs trying to make some money and a grower who wants their harvest to pass. Real Dirt host and Greener Consulting Group founder Chip Baker has plenty of experience dealing with cannabis testing in a variety of states.

He knows first hand how difficult it can be to find an affordable and reliable testing facility for a wide range of cannabis products.

Keeping up with the different testing regulations throughout the US is pretty much an impossible task. Every state is similar but different. Every lab is similar but different. Every state has different microbial and pesticide determinations. Some are lax and others are bordering on impossible to follow. You really have to be careful about the products you use on a plant. One day it could be legal and the next day not, literally. There needs to be a standardization of COAs (certificate of authenticity).

Chip Baker

Real Estate Cannabis Compliance

Real estate and zoning for cannabis businesses is one of the biggest hurdles to overcome. Not only do states create their own zoning requirements for cannabis businesses (e.g. distance from schools, parks, etc.), land owners can restrict cannabis businesses on their land as well.

Additionally, local governments and neighborhood groups who lobby them can also implement more restrictions. Cannabis businesses often face special zoning restrictions including security, lighting, crowd control, delivery traffic, parking, and drainage.

It can be a very time consuming process planning out a building design to meet the various strict requirements set by state and local governments. In turn, cannabis compliance in real estate can become more difficult dependent on the state.

Security and Surveillance

Any potential cannabis business owner will implement some form of security and surveillance out of necessity. So while it isn’t an aspect of cannabis compliance that is likely to slip the mind, states can still set specific requirements for security and surveillance that must be met.

These requirements will almost always include cameras and some sort of ID verification at the entrance. Other requirements may be hired security at the entrance, alarm systems, and even security patrols at cannabis cultivation facilities. Luckily security is something most cannabis business owners take very seriously, which makes cannabis compliance in this regard rather easy.

However like other state requirements placed on cannabis businesses, the costs of meeting security requirements can prevent smaller businesses from complying.

Sales and Reporting

Beside the age limit placed on medical and recreational cannabis purchases, states can add additional requirements when it comes to reporting. States may require an up to date record of inventory at all times, seed to sale tracking, purchase limits for consumers and more.

It isn’t uncommon for a cannabis business to try and skirt cannabis compliance in some of these aspects, and some have paid the price for it. Sales and reporting is a major aspect of cannabis compliance that will vary by state, and should be taken seriously.

More cannabis compliance requirements

The requirements listed above may be some of the most important for any cannabis business owner, but cannabis compliance is more broad than just a few key aspects.

Taxes, consumer privacy, employee hiring and practices, health and safety are just a few more that should never be overlooked, and can vary by state. If a cannabis business operates in a state with delivery options, that adds a whole new tier of cannabis compliance that must be met as well.

Similar to any business in any industry, the larger you are the more it costs to operate. The larger you are, more difficult it will be to maintain compliance in an ever changing industry with regulatory updates happening frequently.

Owning a business is no easy task. However owning a cannabis business is a challenge many won’t be able to handle.