At least 57 licensed cannabis companies in Los Angeles are poised to see their business permits yanked by city authorities at the end of the year – with no obvious way to get the licenses reinstated.
The licensees in question – which appear to be a mixture of retailers, distributors and perhaps other business types – represent roughly 14% of the 418 marijuana business permits issued to date by the city, according to the L.A. Department of Cannabis Regulation (DCR).
Although the City Council has a motion pending to give the 57 companies a lifeline, the council is in recess until Jan. 8.
So it’s unclear if the Council would be able to act in time to save the businesses. But even the Council motion itself warns that all of the companies might be forced “out of business” next month.
The situation has many business owners “frantic,” said Jerred Kiloh, president of the L.A.-based United Cannabis Business Association (UCBA).
The situation
At issue is those companies’ annual license renewal applications and fees for 2021, which were due Nov. 2.
Under current city law – which was put in place in July 2020 – there’s no way to grant the businesses extra time, a DCR spokesperson noted in an email to Marijuana Business Daily.
“(City code) does not permit DCR to waive late renewals or allow reinstatements,” the spokesperson wrote.
After Dec. 31, 2020, according to the DCR website, all 57 licensees “will be required to cease operations and will not be allowed to engage in commercial cannabis activity until a new application is submitted to DCR and a new temporary approval or license is issued.”
So it appears all 57 will have to start from square one in applying for both local and state permits, a process that could take months, or even years, before those businesses can reopen.
At the moment, there appears to be little that can be done to avert the closures.
“Late renewals and/or reinstatement would require the City Council to amend the Los Angeles Municipal Code,” the DCR spokesperson wrote.
The measure now heads to Gov. Phil Murphy, who is expected to sign the legislation
Recreational adult-use marijuana is just a signature away from becoming legal in New Jersey after both houses of the state legislature passed legislation on Thursday to decriminalize and legalize the industry.
The measure now heads to the desk of Gov. Phil Murphy, who is expected to sign the bill into law.
The bill creates the organizational and regulatory system needed to oversee the industry in New Jersey. It will direct 70% of all sales tax revenue generated and all “social equity excise fees” on cultivators toward communities that have been most adversely-impacted by drug laws.
The other 30 percent of all sales tax revenue generated will go toward the operations of the Cannabis Regulatory Commission, as well as to support state, county and municipal law enforcement.
The five-member Cannabis Regulatory Commission will be tasked with governing the industry in New Jersey. It will include three members appointed by Murphy and one each nominated by Senate President Steve Sweeney and Assembly Speaker Craig Coughlin.
The measure will cap the number of statewide cannabis facilities at 37 for the first two years. Towns will be allowed to prohibit marijuana businesses in their communities, and those who choose to allow such businesses to operate will be permitted to collect and keep a 2% tax.
The legislation will provide for certain criminal and civil justice reforms, including the elimination of criminal penalties for marijuana possession. It will also regrade the unlawful distribution and possession of less than five pounds of marijuana or less than one pound of hashish.
Law enforcement officers across the state made over 24,000 arrests, or one every 22 minutes, for cannabis possession in 2012, which was more than in the previous 20 years. Marijuana possession arrests also made up for three out of every five drug arrests that year, according to Assembly Democrats.
Distribution of less than five pounds, but at least one ounce or more, of marijuana or distribution of less than one pound, but at least five grams or more, of hashish is punishable as a crime of the third degree under current law. Offenders can face imprisonment of 3-5 years and/or a fine of up to $25,000.
Smaller distribution amounts of less than one ounce of marijuana or less than five grams of hashish is punishable as a crime of the fourth degree under current law. Offenders can face up to 18 months in prison and/or a fine of up to $10,000.
The bill also includes business incentives for minorities, women and disabled veterans to help them partake in the industry.
November’s tax revenues from adult-use cannabis, which reflect the record $75.28 million in sales tallied in October, reached nearly $22.88 million, according to figures released by the Illinois Department of Revenue.
That’s less than $3 million shy of the roughly $25.74 million in taxes collected through alcohol sales last month. That’s the smallest deficit since recreational marijuana was legalized in January.
Pot sales have skyrocketed in the 11 months since the drug was fully legalized, resulting in an almost steady increase in monthly returns for the state, according to a Sun-Times analysis. Taxes have pumped nearly $153 million into the state’s cash-strapped coffers, including nearly $100 million in the past five months.
Why have weed sales — and taxes — increased so much?
First of all, state levies on cannabis are far higher than those tacked on the price of booze (not including local or federal taxes).
While there’s no apples-to-apples comparison, alcohol is also subject to the general sales tax of 6.25% and an excise tax of 23 cents per gallon of beer, $1.49 per gallon of wine and $8.55 per gallon of liquor.
That means the state’s share of the price of a joint is much more than its share of the cost of a six-pack of beer. A $15 six-pack, for example, would net 69 cents for the state, while two high-potency joints priced at $16 would generate $5 for the state.
What’s more, pot sales have steadily increased since the program launched Jan. 1 — which was to be expected. But COVID-19 has also played a role, experts said.
The pandemic has “had a big impact on sales numbers,” said Alyssa Jank, an analyst at the Brightfield Group, a Loop-based firm that researches the cannabis industry.
“People have been at home more. People are looking for things to do [and] people don’t have to worry about being functional or capable to go and do stuff. So I think that’s part of it,” said Jank. “I think another part of it is that people have been way more stressed out and anxious this year, so they’re looking for something as a solve for that.”
Meanwhile, tax revenues from alcohol sales have fluctuated and returned to pre-pandemic levels. Though some research suggests consumers are spending less overall because they aren’t paying for the markup at restaurants and bars, total alcohol sales still trump the state’s pot sales totals.
Detroit — Starting January, longtime city residents will be the first to apply for certification and secure recreational marijuana licenses by the summer, city officials announced Wednesday.
Mayor Mike Duggan and councilman James Tate unveiled a timeline urging residents eager to jumpstart their marijuana business to begin by applying for Detroit Legacy certification opening online Jan. 19. The first licenses could be issued to qualified residents as soon as June.
“It’s by far the most controversial provision,” Duggan said. “The city will not issue a license to any business unless 50% of the licenses in that category are Detroiters. Which means if you’re from outside the city, you can’t get a license unless a Detroiter already has one. We’ll never go below 50%.”
The plan, city leaders say, was crafted to ensure residents disproportionately affected by the nation’s failed “War on Drugs” will have an equitable opportunity to participate in an industry that’s estimated to yield $3 billion in annual sales. In late November, the city council unanimously approved the ordinance.
“It was imperative for us to ensure we right that wrong,” Tate said. “We have individuals who are making a very good living on marijuana today, the same plant that created this situation of mass incarceration around our country in the city of Detroit, so this is an opportunity for us.”
Applicants can qualify for the “legacy” certification if they’ve lived in Detroit for 15 of the last 30 years; lived in Detroit for 13 of the last 30 years and are low-income; or lived in Detroit for 10 of the last 30 years and have a past marijuana-related conviction.
Legacy Detroiters will receive benefits including reduced fees, technical assistance and a six-week period when only legacy Detroiter applications will be reviewed before the rest of the public by the city’s Civil Rights, Inclusion and Opportunity Department.
Legacy Detroiters will be able to purchase city-owned land at 25% of the fair market value and all application fees be slashed to 1% of the total cost.
“These are for real Detroiters, those who have roots in the community,” Duggan said. “Or you can qualify as a business legacy, owned and controlled 51% by individuals with the legacy certification.”
Despite the scrutiny they face, “Detroit is ready for this huge lift,” Tate said.
He added it was rare to witness overwhelming excitement about an ordinance but said it’s because “now (residents) have that sense of opportunity and hope.”
How to apply
The adult-use law is expected to go into effect in January and Detroiters can start by reviewing the process at detroitmeansbusiness.org.
Starting Jan. 19, the website will open for applications for legacy certification. Applicants will also need state certification through the Michigan Marijuana Regulatory Agency.
The state requirements include a $6,000 fee with reductions for those involved in social equity programs. Applicants must provide the state information on the company and have a personal background check.
The state process could take two to three months and Duggan said Detroit applicants can begin the city process in January before state prequalifications are complete.
Starting April 1, Detroiters and general applicants will able to apply for licenses through the Buildings, Safety Engineering and Environmental Department.
Legacy Detroiters will be the first applicants reviewed for licenses starting May 1. General applications will be reviewed starting Aug. 1.
City licensing fees will cost $1,000, but only $10 for legacy Detroiters.
“We are going to change the inequity on Detroit versus non-Detroit businesses,” Duggan said. “We’re doing everything we can to create every opportunity for Detroiters to start these businesses.”
The city will license up to 75 adult-use retailers, the same number it allows for medical marijuana provisioning centers. Officials said it amounted to one dispensary every two square miles in the city.
Applicants will need:
Detailed business plans
Three years of income tax returns
Authorizations for background checks
Property tax clearances and clearances of any blight
An address for the business
Those without an address can obtain a provisional license valid for one year and for information on properties. Detroit officials have said only four of the city’s 46 medical marijuana dispensaries — permitted under a law approved by Detroit’s council in 2018 — are owned by residents.
Mitzi Ruddock, a 40-year-old Detroit single mother with a past marijuana conviction, told The News that having a seat at the table made a difference.
“I and many other Detroiters have sacrificed so much to see the day that brings generational wealth to our children through legal cannabis businesses,” said Ruddock.
Recreational and medical marijuana has come a long way since Colorado first legalized adult use in 2012.
The saying, “not your father’s weed,” has become truer than ever, as new testing and growing methods has led to great advances in potency and knowledge of marijuana’s many effects. One such delivery method comes in the form of edibles, or marijuana-infused products.
We have long-surpassed the day of brick-weed brownies and random dosages that could do nothing to one person and completely level another, and a new world of options has started to grow in its place. Brownies may still be one of the most popular edible options, but with the addition of candies, drinks, tinctures, and more there is a plethora of new choices that patients and adults can test out themselves.
The difference between eating and smoking cannabis
One of the major issues people face when it comes to edibles is knowing the difference between edible effects and normal smoking or vaporizing effects. The other question many have before they try edibles their first time is, “how long do edibles take to kick in?”, and rightfully so. While many edibles nowadays may come with a measurement on the label of how many milligrams of THC the product has, this can lead to confusion for those who don’t know the recommended amount to take.
The recommended average dose for an edible in places such as Colorado and Washington is 10mg of THC per dose. For example, if a brownie has 100mg of THC in the whole thing, only one small piece of that brownie is equal to a normal dose. This can lead to serious problems when someone who does not know the recommended dose eats half the brownie or even the whole thing, because let’s be real, who just eats half a brownie?
When it comes to feeling the actual effects of an edible after ingestion, results vary for everyone. While one may indulge in marijuana recreationally or medicinally on a daily or chronic basis through smoking or vaporizing, edibles act within the body – from ingestion to digestion – in a very different way.
Compared to smoking or vaporizing in which THC is absorbed through the lungs, ingesting an edible takes and entirely different route through the body. Since it is technically food, the body treats it like anything else you might eat; it passes through the digestive system, which can take a while. While the effects of smoking or vaporizing are near instantaneous, edibles take much longer to take effect due to the digestive process which can vary from person to person.
How long edibles take to kick in
In the case of regular marijuana-infused food products such as brownies, cookies, candies, etc., the average onset time can range from thirty minutes to well over an hour, in some cases even taking as long as two hours to kick in. Inexperienced users many times make the mistake of assuming the edible did not work because it has been longer than what they were told at the dispensary and eat more, only to be hit a short time later with increased effects that last much longer.
When purchasing an edible, always look for labeling and dosage. Some edibles come in one single 10mg dose, while others come in a package with many pieces, each equal to 10mg but accumulate to a higher dose when taken in greater quantities (i.e. gummies that come in a package of five or ten). Always ask your budtender what they recommend for first time edible users, and make an informed decision.
The main thing to keep in mind after ingesting an edible is patience. If on an empty stomach, one can expect an edible to hit much faster, no matter the dosage. However much faster in the case of edibles still ranges between thirty to forty-five minutes for how long it takes for edibles to kick in. Many dispensaries and professionals recommend eating a small amount of normal food prior to ingesting an edible so the effects do not come on too strong and too quickly.
Eating food after ingesting the edible, if on an empty stomach, can increase the speed at which the effects come on, as putting more food on top of the edible can push it down more quickly through the digestive system. So, if you’re looking to feel the effects as quickly as possible, eat or consume the edible on an empty stomach and eat something small afterward to help speed up the digestive process.
It is important to keep in mind that how long edibles take to kick in can also vary depending how they are made. The main methods for infusing food with marijuana consist of cannabis butter, cannabis concentrates and oils. While the former of the three usually involves using marijuana flower itself, the latter two are an already concentrated form of marijuana that can be much stronger. Cannabis butter can also be made more efficiently with concentrates to increase potency.
Shop for edibles with confidence
Asking your budtender if they know how a certain edible was made, what the dosage is, and the average onset time that other consumers have reported can greatly increase confidence when it comes to figuring out how long edibles take to kick in, and how long the effects might last.
Overall, the biggest decider when it comes to choosing an edible and figuring out how long edibles take to kick in is you. While researching certain products and asking your local budtenders about what others have experienced can be extremely beneficial, edibles effect everybody differently, and most anecdotes should be taken with a grain of salt.
As a newbie, here are some of the main notes about edibles to know before trying your first edible:
