Tuesday, 5 April 2022

Is Cannabis Federally Legal Now?

Is Cannabis Federally Legal Now?  by Aron Vaughan

Laws around cannabis can be confusing. Individual states have their own laws and regulations surrounding the plant and its products. Now, legislation called the MORE Act is being introduced that would legalize cannabis on a federal level.

Current Federal Status

Cannabis is legal for adult-use in 19 states and for medical use in 36 states. However, under federal law, cannabis is still considered a Schedule I substance under the Controlled Substances Act of 1970. Schedule I drugs are classified as drugs without any medicinal value that have a high risk for abuse.

Other schedule I substances include heroin, LSD, mescaline, psilocybin, and MDMA.

However, CBD, a non-psychoactive compound found in hemp (cannabis plants containing little to no THC) is federally legal. The Farm Bill, passed in 2018, allows the cultivation and commercial sale of hemp and CBD products including flower, oil, concentrates, and edibles. 

Psychoactive products synthetically derived from CBD such as delta-8 THC and THC-O have also emerged in the U.S. market, but the legality of these products is less clear than that of CBD. 

They do not contain delta-9 THC, the compound explicitly banned according to federal law, but they could still be considered illegal under the Federal Analogue Act, a section of the United States Controlled Substances Act passed in 1986 that bans designer chemicals structurally similar to drugs already banned under U.S. law. 

For now, delta-8 and THC-O are available on shelves of dispensaries and smoke/vape shops across the country, but if the White House decides to pursue legal action against manufacturers, these substances could potentially disappear from the market. 

Current State Status

If the subtleties between hemp, cannabis, and analogues seem complicated, the technicalities of state versus federal law are nearly impossible to dissect. 

Essentially, the Supremacy Clause of the United States Constitution (Article VI, Clause 2) establishes that federal law controls when state law and federal law conflict, according to criminaldefenselawyer.com.  

The Constitution provides an exemption to this clause when it comes to the exercise of police powers, which are delegated to the states. 

States cannot prevent federal cannabis prosecutions, but the federal government typically does not interfere with citizens, manufacturers, or retailers who are operating within the laws of their state. This precedent was established in 2013, when the Department of Justice (DOJ), under President Obama’s administration, formally announced that it would not interfere with marijuana operations that strictly complied with state regulations.

The DEA does intercede in illegal cannabis operations when the distribution network funds gang activity, incites violence, or includes the sale of other illicit substances.

Current Legislation 

Legislation that would simplify current cannabis laws by making the plant and its derived products legal on a federal level is making its way through Congress.

The Marijuana Opportunity Reinvestment and Expungement (MORE) Act would lift cannabis prohibition nationwide and provide expungement of certain cannabis offenses. Legalization on a state level would still be left to residents, however. 

The bill would “end decades of failed and unjust marijuana policy,” Democratic Representative Ed Perlmutter said on the House floor on Thursday ahead of the vote. “It is clear prohibition is over. Today we have an opportunity to chart a new path forward on federal cannabis policy that actually makes sense.”

This was the bill’s second sojourn in the House, passing with 220 votes in favor and 204 opposed. The vote split almost evenly along party lines with most Democrats supporting the bill and the majority of Republicans contending it. Heading to the Senate next, the MORE Act will face stark opposition from minority leader Mitch McConnell and many of his Republican colleagues.  

The MORE Act will need to gain 60 votes in an evenly divided Senate, a prospect that is considered unlikely due to a lack of support from Republicans.

The legal industry generated $25 billion in sales last year, a 43% increase over 2020, and is expected to hit $65 billion in 2030. Moral and medical arguments aside, the bill may pass purely on the positive economic impact of the industry. 

Senate Majority Leader Chuck Schumer and Senators Cory Booker and Ron Wyden are also planning to introduce their much-anticipated federal decriminalization bill, the Cannabis Administration and Opportunity Act later this month, which could hinder the progress of the MORE Act in the Senate. 

Troy Carter, a Democrat from Louisiana, said 91% of Americans want some form of cannabis to be legal and there are more important priorities the police should be focused on. The questions are, which bill has more power to pass the gauntlet of Congress, and which legislation will be most beneficial to the American people?

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Moxie Plans to Become the First Carbon-Negative Cannabis Company

Moxie Plans to Become the First Carbon-Negative Cannabis Company by Rachelle Gordon

Whether we like to admit it or not, the cannabis industry creates an awful lot of waste. Millions of units of products are sold throughout North America annually, with the vast majority packaged in single-use plastic, often due to regulations.

Labeling requirements, child safety protocols, and tamper-proof seals make for fairly hefty containers in most markets. These jars and mylar bags are typically destined to reside in landfills, despite the conscious efforts of many consumers to place what they can in the recycling bin.

Moxie is a brand on a mission to help combat the growing garbage issue within the industry. Currently available in seven states, including Arizona, California, Florida, Michigan, Nevada, and Pennsylvania, this Long Beach, CA-based business is changing the game in terms of its environmental impact.

And while sustainability certainly comes at a higher cost, the team at Moxie is committed to going the extra mile while maintaining an affordable price point for consumers — even if it puts them in the red.

“We’ll always put what’s right before revenue,” said Tessa Adams, Moxie’s chief marketing officer. 

From eco-friendly packaging to energy-efficient lighting in their cultivation facilities, this brand is setting a high bar when it comes to putting the planet first.

Ambitious Environmental Plans Put Moxie Miles Ahead

Established in 2014, Moxie was founded with the belief that cannabis can benefit our society in more ways than one. “Cannabis is all about helping people,” Adams said. “Additionally, we have to help the world become the best place that it can possibly be.”

Moxie uses environmentally-friendly packaging and strives to put sustainability over profit.

Their high-quality products (including flower, concentrates, vape pens, and later, edibles) combined with a social justice focus helped the brand quickly rise to prominence. The company soon expanded into Michigan and Nevada and not long after, Moxie became the very first licensed cannabis business in its home state of California.

By 2020, the brand launched its sustainability initiative, announcing its intentions to become the first carbon-negative cannabis company. Moxie soon switched nearly all of its outer packaging to paperboard that is 100% recyclable, Forest Stewardship Council-certified, and chlorine-free. Labels are made from biodegradable grass paper.

The move to more environmentally-friendly packaging was an expensive one. And in an industry where margins are already razor-thin, the team at Moxie knew they were facing an uphill battle with their budget. However, as Adams pointed out earlier, it’s all about doing what’s right no matter the cost.

“We’re looking at our future, we’re looking at our children’s future, and we’re questioning what’s going to happen,” she said. “And so for us, it is imperative that we preserve a future for the rest of the world.”

Additional Eco-Friendly Practices Expand on Sustainability Initiative

Despite the enormous undertaking of converting to greener packaging, Moxie isn’t done there. The brand is collaborating with waste management providers to help further offset refuse created in production facilities and convert it to usable energy. This can include everything from break-room trash to used shipping supplies.

The company has also installed LED lights in its indoor cultivation operations and is establishing an outdoor grow for extraction source material in an effort to better control the supply chain.

“That’s going to be huge for us, getting the outdoor grow. It’s definitely going to help offset some of our emissions,” Adams said. “We’ve always sourced our material, and we’ve tried to source from sustainable farms, but we have always wanted our own so that we can create that sustainability effort ourselves.”

Adams also hinted at soon-to-be-announced partnerships in multiple markets with similarly aligned companies in order to further boost their environmental efforts.

“It’s our duty as an industry to protect the earth as best we can. We want to work with as many other companies as possible to figure out ways that we all can be better. I think that’s the way that we can really affect change.”

Community Building Rounds Out Moxie’s Mission 

As Adams previously said, cannabis is about helping people — and the world.

In addition to their ambitious environmental pledge, Moxie engages with several non-profit organizations to maximize their impact, supporting causes such as homeless youth, breast cancer research, and low-income medical cannabis patients.

The company has also partnered with the Last Prisoner Project to help promote restorative justice and right the wrongs of the war on drugs.

For the team at Moxie, it all comes down to being stewards of goodwill and setting an example for other operators to encourage them to go above and beyond. 

“It’s up to us to pave the way as an industry and act as leaders in order to help solve some of the problems our planet is currently facing,” Adams said. “And we won’t have anything if we don’t protect the earth that we live on.”

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Monday, 4 April 2022

New Mexico Adult-Use Cannabis Sales Earn $4.5M First Weekend

New Mexico Adult-Use Cannabis Sales Earn $4.5M First Weekend by Patricia Miller

New Mexico launched adult-use cannabis sales on Friday, April 1, 2022. Sales were staggering.

In just one weekend, the Cannabis Control Division reported a total of $4.5 million in sales. Nearly 70% are from recreational purchases.

The state’s medical cannabis program has been in place since 2007. Friday’s change places New Mexico among 18 states that have legalized adult-use cannabis.

The state’s proximity to Texas, a staunch prohibitionist stronghold, could usher in added sales as cannabis hungry consumers from the Lone Start State slip across the border to meet their needs. 

Texans who choose to return home with cannabis in their possession face stiff penalties. Concentrate possession, particularly, is punishable by up to two years in prison and a $10,000 fine. 

New Mexico consumers will initially rely on medical cannabis providers that have expanded their offerings to include recreational sales. 

These legacy retailers may corner the market until new license holders are able to open their doors. New Mexico’s cannabis regulators have issued 230 cannabis business licenses so far for growers, retailers, and manufacturers. 

Local governments can restrict locations and hours of operation, but cannot ban cannabis businesses entirely. Users can consume in their homes or in designated hotels, casinos, or cigar shops. There is a $50 fine for public consumption. 

The state is enacting a 12% excise tax on recreational cannabis sales. Local governments will receive a minority share of excise taxes. New Mexico is also issuing $5 million in low-interest loans to small cannabis businesses unable to access traditional lines of credit. 

Gov. Michelle Lujan Grisham said Thursday that adult-use legalization is a response to popular demand and will generate small business opportunities. “This is what consumers want,” Lujan Grisham said.

The ultimate goal for lawmakers is to eliminate the illicit marketplace, increase employment, and provide new sources of government income. 

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Friday, 1 April 2022

Legislative Update: A Flurry of Hemp Bills from Several States

As we were informed by the US Hemp Roundtable, seven states have taken action on hemp bills varying in status from newly proposed to passed, and as usual, it’s a mixed bag.

A rash of bills introduced in Florida over the past several months sought to impose an age restriction on ingestible hemp sales in the state (21 to buy), but all were defeated by the Roundtable, including one that tried to sidestep the Department of Agriculture and Consumer Services, which oversees hemp regulation in the state.

More headway was made in Virginia, where the Roundtable and partnering advocates have reached the ear of Governor Glenn Youngkin, who has agreed to discuss amendments to a bill (SB 591) that would have criminalized the sale of full-spectrum hemp products containing more than 0.25mg/THC per serving or 1mg/per product.

A bill in Indiana (SB 209) that would have required hemp products to report all forms of THC (not just delta-9 THC) as the total THC amount while adding isomers and salts to the “synthetic drug” category fizzled out as lawmakers were unable to come to terms on hemp language.

Utah enacted HB 385, a bill that “prohibits producing, selling, or using a CBD product that is added to a conventional food or beverage,” according to the Roundtable.

The bill also illegalized transporting these materials across Utah state lines (incoming and outgoing) as well as selling smokable flower.

Georgia and Tennessee are still honing in on delta-8 THC, with the former intending SB 614 to shut down sales, manufacturing, and use of any hemp-derived delta-8 product and the latter amending HB 1927 to define any product exceeding 0.3% THC as “marijuana.”

Finally, the Pennsylvania Liquor Control Board is joining up with the state’s Department of Agriculture to bar CBD products from being sold by establishments licensed to sell alcohol.

No official proposals have been reported yet, but the Roundtable and other advocates are closely monitoring the development and working with state officials to encourage different approaches.

As usual, we’ll continue to provide our audience updates on the ever-shifting state of hemp as states continue to act on legislation.



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Pete Holmes Stars in New Series on CBS

Pete Holmes Stars in New Series on CBS by Ebby Stone

Actor, comedian, and author Pete Holmes is starring in CBS’ new comedy series How We Roll. The series features Holmes as Tom Smallwood, a Midwest husband and father who is laid off from a car assembly line. To provide for his family, he decides to pursue his dream of becoming a professional bowler.

The Crashing star and intermittent cannabis consumer spoke with Cannabis & Tech Today for the soon-to-debut spring issue and touched on the new series. He said starring in a sitcom can be a bit psychedelic. 

“I find being on a sitcom set to be very trippy in this really enjoyable way because it’s fake. It’s a soundstage, they have trees inside and literally — there’s a string tied to a tree and it’s somebody’s job to pull it to make it look like the wind,” Holmes said. “That is the cosmic joke. That is funny.”

Holmes has been outspoken about his use of cannabis and psychedelics, though it certainly doesn’t define his decades-long career. He worked with CollegeHumor in its earliest iterations, starring as Badman in a parody series about Batman as a blundering caped crusader. He starred in the 2017 series Crashing and debuted his first book Comedy Sex God in 2019. He’s also hosted several hour-long comedy specials on HBO.

Holmes said he is enjoying working with his costars, including Katie Lowes, Chi McBride, Julie White, and Mason Wells. “Here’s the God’s honest truth about How We Roll, I’m really happy making it. I really enjoy it. I think it’s really funny and good and there’s some heart to it and I really want to keep doing it,” said Holmes.

How We Roll is airing on CBS Thursdays at 9:30/8:30 Central. To read Pete Holmes’ feature in the spring issue of Cannabis & Tech Today, sign up for our newsletter and receive the digital issue free to your inbox.

Image courtesy of CBS.

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MORE Act Passes the House for Second Time

MORE Act Passes the House for Second Time by Sara Brittany Somerset

On Friday, April 1, 2022, the House passed the Marijuana Opportunity and Expungement Act (MORE) for the Second Time. 

The U.S. House of Representatives officially passed the MORE Act, a bill that would end the federal prohibition of cannabis by removing it from the list of prohibited and controlled substances. This is the second time the bill passed the House; however, it will most likely face strong opposition in the Senate. 

The Marijuana Opportunity Reinvestment and Expungement (MORE) Act, introduced by House Judiciary Chairman Democrat Jerrold Nadler, passed the House for again; this time, by a narrowly secured 16 votes. 

Cannabis is currently legal for medical use in 36 states and adult-use in 19 states. However, there are already enough legalized medical states to collectively attempt to amend the constitution to federally legalize medical cannabis with an “Article V.” 

Article V – a legal precedent set by America’s founding fathers – states, “The Congress, whenever two-thirds of both houses shall deem it necessary, shall propose amendments to this Constitution, or, on the application of the legislatures of two-thirds of the several states, shall call a convention for proposing amendments, which, in either case, shall be valid to all intents and purposes, as part of this Constitution, when ratified by the legislatures of three-fourths of the several states, or by conventions in three-fourths thereof, as the one or the other mode of ratification may be proposed by the Congress; provided that no amendment which may be made prior to the year one thousand eight hundred and eight (1808) shall in any manner affect the first and fourth clauses in the ninth section of the first article; and that no state, without its consent, shall be deprived of its equal suffrage in the Senate.”

According to Forbes’ staff writer Will Yackowitz, “The legal industry generated $25 billion in sales last year, a 43% increase over 2020, and is expected to hit $65 billion in 2030.” 

This MORE Act would end federal prohibition, but allow the particulars surrounding cannabis legalization to be left up to the individual states. 

According to the National Law Review, “The legislation is expected to hit a wall in the Senate where it will require 60 votes in order to advance.” Therefore, celebration of federal legalization is premature. 

Rob Hofmann, Policy and Advocacy Director of Students for Sensible Drug Policy said, “The passage of the MORE Act in the House is a historic moment for the movement fighting to end the War on Drugs.

“A simple marijuana arrest has a stunning impact on a young person’s life, reducing lifetime rate of wage growth by almost 30%. Now, the Senate must act by passing the Cannabis Administration and Opportunity Act to end marijuana prohibition while providing restitution to those directly impacted by marijuana arrests,” he said.

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Mike Tysons Cannabis Brand is Available in 3 New States

Mike Tyson’s Cannabis Brand is Available in 3 New States by Aron Vaughan

Tyson 2.0, the cannabis brand of former heavyweight boxing champion Mike Tyson, is continuing its nationwide expansion with its launch of products in three new states. 

Tyson’s line of edibles, concentrates, and flower are now available at retailers in Delaware, Illinois and Washington D.C. In addition to the markets just announced, Tyson 2.0 products, including the popular Mike Bites edibles shaped like Evander Holyfield’s “holy ear” are available in California, Colorado, Massachusetts, Michigan, and Nevada with plans for more states coming online in the near future. 

Columbia Care Partnership

Cannabis cultivator, manufacturer, distributor, and retailer Columbia Care is partnering with the champ for the rollout. 

“Cannabis has been a game changer for me both physically and mentally, and I’m excited to share the healing benefits of this miracle plant with Tyson 2.0 fans in Delaware, Illinois and D.C.,” said Tyson, who serves as Chief Brand Officer of Tyson 2.0. “Through Columbia Care’s retail network, we are expanding our market presence and gaining nationwide distribution.”

Columbia Care’s three dispensaries in Delaware, located in Rehoboth Beach, Smyrna, and Wilmington are offering flower and Bubble Hash of Tyson’s all-time favorite strain Sour Diesel, Fruit Punch vapes, and pre-rolls and vapes of Sour Diesel Coma.

Products available to consumers in Washington D.C. include Mega Runtz flower and kief at Capital City Care, DC. 

In Illinois, people can find Tyson’s brand at Columbia Care’s Chicago location and select retail locations of Zen Leaf, Windy City, and Ascend. 

Currently in Illinois stores are Mac 7 flower and the fan-favorite Toad line including flower of East Coast Toad and Sonoran Toad. Tyson 2.0 products will also be available at Medmen, Cresco, and Green Thumb Industries in the company’s next quarter. 

“Each of our markets are clamoring for the Tyson 2.0 products, with lines around the blocks when we launch,” said BJ Carretta, SVP of  Marketing at Columbia Care. “This speaks directly to the power of the brand and the thoughtfulness for the consumer that goes into creating each product. We are proud to partner with the Tyson 2.0 team and help further their vision.”

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New Innovative Tech Is Changing Cannabis Finance

TESTSTSARDSAR New, Innovative Tech Is Changing Cannabis Finance by Patricia Miller The Emerging Markets Coalition (EMC) is a member-dri...