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Nevada cannabis lounges approved by state oversight board

by Travis C | Jun 30, 2022 | 420 Culture & Travel, Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Culture, Industry News, Legalization, Marijuana

Nevada cannabis consumption lounge licenses

Regulations for the licensing and operation of cannabis consumption lounges in Nevada received approval from the state’s oversight board Tuesday.

State lawmakers approved a bill authorizing cannabis consumption lounges in Nevada last year. The last several months have included 15 meetings among Nevada Cannabis Compliance Board members to determine the licensing process.

Two consumption lounge license-types will be issued. The first is for lounges that will be directly attached to a retail cannabis dispensary. The second is for independent, stand alone consumption lounges.

Anybody can apply for a Nevada cannabis consumption lounge license. However one person cannot hold a retail dispensary license and an independent consumption lounge license at the same time.

Only the owner of a licensed operational retail cannabis dispensary may be eligible to apply for a retail cannabis consumption lounge license. In other words, a consumption lounge attached to a dispensary will be owned by the owner of the dispensary.

The Nevada Cannabis Compliance Board will hand out 20 licenses for independent consumption lounges, with 10 reserved for social equity applicants. To qualify as a social equity applicant, the applicant must be someone “who has been adversely affected by provisions of previous laws which criminalized activity relating to cannabis, as determined by the Board [. . .] Such adverse effects may include, without limitation, adverse effects on an owner or officer of the applicant.”

An independent cannabis consumption lounge would contract with a retail cannabis dispensary to supply cannabis for customers to consume on site.

If all 20 licenses are handed out by June 30, more will be issued as long as the amount of independent consumption licenses does not outnumber the amount of retail consumption lounges.

However a retail cannabis consumption lounge will not come cheap. The application alone requires a non-refundable application fee of $100,000.

An independent cannabis consumption license on the other hand will carry a $10,000 fee to apply. This fee can be reduced further for social equity applicants.

Currently there is no word on when or how the licenses will be scored and issued. Additionally there will still be several months ahead of developing and promulgating regulations for cannabis consumption lounges.

Local jurisdictions will also have the option to restrict cannabis consumption lounges from opening in their area.

The Nevada Cannabis Compliance Board will be keeping those interested in Nevada cannabis consumption lounges up to date through a newsletter, which can be subscribed to on the government website.

Cannabis industry could be worth over $90 billion by 2026

by Travis C | Jun 23, 2022 | Blog, Business, Cannabis Business, Cannabis News, Culture, Hemp, Industry News, Legalization, Marijuana, Medical Marijuana

When states began legalizing cannabis for recreational use following Colorado in 2012, the trend looked promising. Multiple states followed suit in the years to come, and as of 2022, 19 states and the District of Columbia have legalized cannabis for recreational use.

In addition to adult-use cannabis, the majority of the country now has some form of medical cannabis laws on the books. The rapid growth of the industry has turned initial predictions for the industry’s revenue on their heads.

In 2017, those with insights into the industry and a pulse on the growth of the legal cannabis market predicted that the industry could bring in as much as $25 billion in revenue by 2025. A recent analysis by MarketsandMarkets found that cannabis industry revenue surpassed $20 billion in 2020. It also predicts that legal cannabis markets could be worth over $90 billion by 2026.

In other words, the industry has triple the growth potential as originally thought. This is a positive sign for those wanting to see the industry grow. It also shows the increasing acceptance of cannabis as a recreational product, and the changing perceptions surrounding cannabis consumers.

Concentrates are the main product sector that is seeing the most growth since 2020, and has the most projected growth through 2026. This includes edibles, tinctures, vape pens, cannabis extracts and other concentrated products.

What may come as a surprise is the finding that medical cannabis dominated the majority of cannabis revenue since 2020. However it does appear that the conductors of the analysis included CBD as a medical cannabis product.

CBD has exploded in popularity as a legal “health supplement” after the 2018 Farm Bill legalized hemp, i.e. cannabis with a THC percentage below .3%. Opposed to medical cannabis which requires a patient’s license and purchasing from a licensed dispensary, CBD can be obtained from a smoke shop or gas station in some cases.

Not to take away from the success of medical cannabis states, Oklahoma was the highest grossing cannabis market in the country in 2021, despite only having a medical cannabis program.

Overall, future growth of cannabis markets will be mostly seen in North America as Canadian and US markets continue to grow. Other factors such as an increase in recognition of medical benefits of cannabis and growing consumer demand for cannabis in disease management and treatment due to high health care costs are expected to drive the growth in the North American region.

As for hemp markets, the industry is projected to hit roughly $25 billion by 2025. The hemp industry was worth over $4.5 billion in 2019, just one year after hemp was federally legalized.

What to know about Oklahoma cannabis legislation changes

by Travis C | Jun 20, 2022 | Blog, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Industry News, Legalization, Marijuana, Medical Marijuana

The 2022 legislative session has ended in Oklahoma, bringing with it over a dozen new pieces of legislation specifically impacting the medical cannabis industry.

OMMA Executive Director Adria Berry sent an email to cannabis business owners this week with details on the new legislation, while also thanking businesses for their cooperation and transitioning to Metrc. Metrc is a seed to sale track and trace system specifically designed for the cannabis industry.

While chosen to be implemented in September of 2020, it wasn’t until May 26, this year that the state finally forced the transition.

“Through the struggles and bumps in the road, we’ve taken your feedback, questions, comments and complaints directly to Metrc every single time. Some answers are quick and easy, others take days to solve. At the end of the day, I want you to know that we are working on every issue you’ve brought us and will not let problems go unsolved.” said Berry.

In addition to the implementation of Metrc, Oklahoma’s governor also signed thirteen separate cannabis-related bills into law this week. The laws still must go through a rulemaking process in which regulations are formed. The public will be allowed input in this process.

House Bill 2179: Creates a tiered commercial grower fee structure based on size and type of facility — annual fees would range from the current $2,500 to more than $50,000. Under the terms of the bill, processor license fees will be determined by volume and range from $2,500 to $40,000. Dispensaries will pay $2,500 to $10,000, based on annual sales. Testing laboratories will pay a flat $20,000. Effective June 1, 2023.

House Bill 3019: Adjusts packaging standards to allow clear packaging for edibles but requires opaque exit packaging for carrying out of the dispensary. Effective Nov. 1, 2022.

House Bill 3208: Places a moratorium on new business licenses between Aug. 1, 2022, and Aug. 1, 2024. The legislation itself takes effect July 1, 2022. OMMA will incorporate the legislation into new emergency rules that will take effect in July before the moratorium begins Aug. 1, 2022. Current grower, dispensary and processor licenses are not included in the moratorium. OMMA will accept new grower, dispensary and processor applications through 11:59 p.m. Aug. 1, 2022. Read more about HB 3208.

House Bill 3530: Creates a revolving fund to be used by OMMA to establish programs and provide funding to support county sheriff enforcement of medical marijuana laws and regulations. Effective immediately.

House Bill 3929: By Jan. 1, 2024, OMMA must promulgate rules to create a process validation program in which licensees may voluntarily participate. Effective immediately.

House Bill 3971: By Jan. 1, 2024, OMMA must create a “secret shopper” program by rule promulgation to purchase medical marijuana in dispensaries and send samples for testing. Effective January 1, 2024.

House Bill 4056: After receiving recommendations from QA lab and a committee of licensed labs, OMMA must promulgate rules by Jan. 1, 2024, that set out required equipment and standards to be used by all licensed labs. Effective immediately.

Senate Bill 1367: Enhances penalties for the unlawful diversion of medical marijuana products to someone not legally allowed to acquire or consume them. Effective Nov. 1, 2022.

Senate Bill 1511: Prohibits commercial grow operations within 1,000 feet of a school. The legislation makes an exception for established businesses. SB 1511 is already in effect — it was effective immediately when Gov. Kevin Stitt signed it in March.

Senate Bill 1543: Establishes OMMA as an independent state agency separate from the state Department of Health. Effective Nov. 1, 2022. Read more about SB 1543 on our website.

Senate Bill 1704: Requires all employees of medical marijuana businesses to apply for a badge/credential beginning Jan. 1, 2024, and allows OMMA to contract with a third party to provide those services. Effective Nov. 1, 2022.

Senate Bill 1726: Adds technology centers primarily used for classroom instruction to the list of school buildings that dispensaries and grows must be at least 1,000 feet away from. Effective immediately.

Senate Bill 1737: Outdoor growers must register as a sensitive crop, and all commercial growers must post signage at the perimeter of the property with specific information. Effective Nov. 1, 2022.

Governor Vetoes Delaware Cannabis Legalization Bill

by Travis C | May 25, 2022 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Legalization, Politics

Delaware cannabis legalization vetoed by governor

Delaware Gov. John Carney announced Tuesday that he would veto the state Legislature’s historic passage of a bill fully decriminalizing possession of small amounts of marijuana.

Cannabis possession of small amounts has been partly decriminalized in the state since 2015, when the state legislature made possession a civil infraction with a $100 fine. House Bill 371 would go further by removing “all penalties for possession of 1 ounce or less of marijuana, except for those who are under 21 years of age,” as well as eliminating penalties for people over 21 who transfer one ounce or less of marijuana “without remuneration.”

While Carney said that he supports medical cannabis and decriminalization, but claimed “long-term health and economic impacts of recreational marijuana use, as well as serious law enforcement concerns” as his reason for not approving the measure.

Legislators who fought for the bill’s passage are dismayed by the veto. Rep. Ed Osienski (D–Newark) said in a statement that he is “deeply disappointed” with the outcome, “especially since [Carney] could have allowed the bill to become law without his signature, which would have preserved both his personal opposition and the will of the residents and legislators.”

Osienski also said that preventing legalization is not going to stop people from seeking out cannabis illicitly. They will just be punished for it.

Former Rep. Patrick Kennedy (D–R.I.) framed Carney’s veto as a stand against Big Tobacco, saying “[t]oday is a win for public health, the citizens of Delaware, and common sense. Political leaders in Delaware have a rich history of standing up to Big Tobacco and marijuana is simply Big Tobacco’s new marketing strategy.”

H.B. 371 was introduced by Osienski in March. It passed in the Delaware House and Senate earlier this month. It was introduced alongside H.B. 372, which would have set up a tax-and-regulate system with licenses for sellers and growers. However, the latter bill was defeated this week by just two votes. If H.B. 371 were to become law without H.B. 372, it’s conceivable that Delaware could develop a “gifting” retail economy similar to the one used in Washington, D.C.

Delaware cannabis law passes Legislature, waits on Governor

by Travis C | May 17, 2022 | Blog, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Legalization, Marijuana, Politics

Delaware cannabis bill headed to governors desk

A bill that would allow personal possession of cannabis for adult-use in Delaware has passed through the legislature. However the state’s governor has already said he does not support cannabis legalization.

Delaware’s Senate gave final approval to the bill legalizing possession of up to one ounce of marijuana by adults for recreational use in the second week of May. The legislation cleared the Senate 13-7 with the vote holding on party lines.

Sen. Bruce Ennis of Smyrna, a retired state trooper, was the only Democrat joining Republicans in opposing the bill. The bill passed the Democrat-controlled House on a 26-14 vote the week before.

Now the bill heads to the desk of Governor John Carney (D) who has expressed his opposition to legal cannabis in the past.

However he hasn’t spoken specifically on whether he would sign a legalization bill that made it to his desk.

“We’ll review the bill, but the governor’s position hasn’t changed,” Carney spokeswoman Emily David said after the vote.

Delaware cannabis laws currently impose a $100 fine for possession of an ounce or less if the user is 21 or older. The new legislation, if passed, would remove this provision.

Anyone under the age of 21 would still receive a civil penalty for possession, and public consumption and possession of more than one ounce would remain a misdemeanor. While the new bill would legalize possession, consumers would not be allowed to directly sell cannabis to other consumers.

However consumers will be allowed to “transfer” cannabis products between each other legally. Without a regulated industry to go along with it, this bill’s passing would likely lead to a gift/donation industry similar to Washington DC.

Cannabis was legalized in DC in 2015, however legislative barriers prevent a regulated industry from being established. There is now a thriving grey market that operates through a gifting and donating loophole in the law.

A separate bill to establish and regulate a recreational cannabis has also passed through two House committees and is awaiting consideration by the full chamber. Sen. Trey Paradee, the chief sponsor of the bill, has said that he would want his bill which already passed through the legislature to be vetoed should the partner legislation for a regulated industry not make it through as well.

Whether the governor will wait for the partner legislation to pass before deciding on the initial bill or not is yet to be seen. However without a legal industry framework to support it, in addition to the governor’s voiced opposition to legal cannabis, the odds of either bill passing in the near future seem unlikely.