LOCAL NEWS

from Dec. 2021 - NE Leaf

by Northwest Leaf / Oregon Leaf / Alaska Leaf / Maryland Leaf / California Leaf / Northeast Leaf

DRINKS

CONNECTICUT

LEADS THE WAY

Connecticut is now poised to beat nearby behemoths New York and New Jersey to the recreational Cannabis market. Despite being the last of the three states to legalize marijuana, regulators anticipate retail sales beginning in Connecticut before the end of 2022, and possibly even earlier. If that happens, the Constitution State could be the first in the tri-state area to offer legal pot sales.

After a rocky start in New York, as former Gov. Andrew Cuomo failed to create important regulatory boards charged with creating industry rules, the Empire State appeared back on track under the leadership of new Gov. Kathy Hochul. However, New York’s Cannabis Control Board recently acknowledged that it would need another 18 months to create the pot program’s regulations. The

Photo by Rodnae Productions

latest estimate puts off issuing business licenses for a year and a half, and it will likely be longer before sales begin – meaning Cannabis won’t be available for retail in New York until late in 2023.

“What we do control is getting [marijuana businesses] licensing and giving them all the tools so they can work within our systems … That’s what we are saying will be achieved in 18 months. Not that they’re open, not that they’ll be full-blown operations, because we don’t know that,” Control Board Chair Tremaine Wright said of the new timeline.

When New York does eventually get its retail pot program implemented, experts expect it will ultimately top $2 billion in sales annually.

While Connecticut’s estimated marijuana market pales in comparison to neighboring New York, analysts forecast sales reaching $750 million by the fourth year of the program. That’s in addition to an anticipated $225 million in medical Cannabis sales expected by 2025 – the state currently boasts nearly 54,000 registered patients.

Both New York and Connecticut placed an emphasis on social equity in their respective Cannabis laws. In Connecticut, 50 percent of adult-use marijuana businesses have been earmarked for qualified equity applicants. And, in addition to other benefits, the first round of cultivation licenses will be reserved for equity applicants who open businesses in areas disproportionately impacted by prohibition.

: STUDY

LEAVE POTENT POT ALONE!

Fear not, a cap on high potency Cannabis is not coming to Massachusetts. After looking into potential adverse effects caused by pot products containing high concentrations of THC, the state’s Cannabis Control Commission (CCC) has decided not to recommend setting a limit on potency. The commission’s researchers were unable to find sufficient scientific evidence of risks associated with high potency pot and therefore decided against recommending a cap.

The study fulfilled an obligation written into the state’s marijuana law. After Massachusetts voters passed legalization in 2016, the legislature approved a bill establishing an adult-use law. That bill called for the CCC to examine “the effects of marijuana and marijuana products with a high potency of tetrahydrocannabinol on the human body, and recommend whether there should be restrictions on the potency of tetrahydrocannabinol in marijuana and marijuana products.”

The CCC noted that THC levels in both the illicit and legal marijuana markets have been on the rise and that high-potency pot products have a large share of the adult-use retail market. However, the commission also acknowledged the difficulties in studying Cannabis, as research involving pot is heavily restricted and the marijuana grown for studies at the University of Mississippi, “does not mirror the array of products and THC concentrations sold at Cannabis retailers (or in the illicit market), or the variety and regional differences in Cannabis.”

Ultimately the CCC did “not find sufficient evidence to recommend a concentration cap” for potent pot. The commission also noted that creating such a potency limit would have the unintended consequence of encouraging those seeking such products to turn to the illicit market.

However, the research team did recommend that regulators improve data collection efforts for the adult-use industry for future studies.

The state currently caps THC potency in edibles, allowing no more than 5.5mg of THC per serving and a maximum of 20 servings per package.

PROGRESS INNEW JERSEY

After several delays that have Garden State residents increasingly antsy, New Jersey officials have announced they will begin accepting license applications from marijuana cultivators, processors and testing laboratories on December 15, 2021. The Cannabis Regulatory Commission (CRC) also announced that the application process for dispensary licenses will begin on March 15, 2022.

The applications will be accepted by the CRC on a rolling basis. The law only caps the number of cultivation licenses allowed, as 37 grow-op permits will be awarded over a two-year period.

While New Jersey’s adult-use law called for the state to begin issuing licenses in September 2021, officials were unable to keep to that schedule. Still, recreational pot business hopefuls are encouraged by the announcement, despite the delay.

The state’s recreational pot law also stipulates that retail sales begin by midFebruary 2022. But with the new timeline pushing the start of the dispensary application process back to March 2022, the launch of retail sales in New Jersey could still be a long way off.

The state’s adult-use pot law does allow for existing medical Cannabis dispensaries to sell recreational marijuana, provided they first prove to regulators that they have the necessary supply to provide for both patients and the public. Existing medical dispensaries must also pay a fee to change their license type.

Some of those current medical marijuana businesses have told regulators they’re ready to begin adult-use sales now, but the CRC has not signed off. Ultimately, these dispensaries represent the state’s only hope of implementing retail sales by February as the legalization law stipulates. However, the commission has not committed to meeting that deadline. In fact, the CRC has

Photo by Rodnae Productions

declined to provide an estimate for when sales might begin in New Jersey.

Cannabis businesses owned by women, veterans or minorities, as well as people previously arrested for pot or those who are economically disadvantaged, will get priority in the application process thanks to the state’s social equity program.

Marijuana delivery, distribution and wholesale licenses are also on the horizon, but the CRC still needs to create the regulations for those businesses before it can set a date to begin accepting applications.

RHODE ISLAND ADDS DISPENSARIES

Photo by Nataliya Vaitkevich

Rhode Island will welcome five new medical Cannabis dispensaries after a long delay. The Rhode Island General Assembly approved increasing the number of dispensaries operating in the state nearly two and a half years ago.

The five companies were selected via a lottery after applying for a dispensary license back in 2020.

The lottery was designed to select one company for five different geographic zones, in an effort to provide better access for the state’s thousands of registered patients.

The lucky winners included RMI Compassion Center in Woonsocket, Pinnacle Compassion Center in Central Falls, Green Wave Compassion Center in Foster, Solar Therapeutics in Cranston and Plant Based Compassionate Care in South Kingtown.

While a lottery was considered the fairest way to award the new licenses, at a cost of $10,000 per application, the process clearly favored companies with cash.

Still, the five new dispensaries will be a welcome addition for the state’s medical Cannabis patients. Currently, only three dispensaries serve all of Rhode Island’s pot patients. Some have been forced to travel long distances to obtain their medicine.

The new locations are also welcomed by the state’s licensed cultivators. There are currently 70 licensed marijuana growers across Rhode Island, so the additional shops will help move an increasing supply of marijuana.

The five newly licensed Cannabis companies will have nine months to open their new dispensaries. Each will pay a substantial $500,000 annual licensing fee.

>> Continued from pg. 11 BILL PUSHES FOR MORE INCLUSIVE NEW YORK

Anew bill introduced in the New York Senate aims to include transgender and non-binary people in social equity programs under the state’s Cannabis law.

New York’s adult-use marijuana law has been lauded for its social equity component, as lawmakers made a concerted effort to craft legislation that would create an inclusive industry. And while we won’t know how successful the program will actually be until it is up and running, there are plenty of positives to point to on paper.

Sen. Jeremy Cooney (D) is hoping to add another positive to New York’s pot program with his new bill.

The legislation “will include transgender and gender-nonbinary individuals in the social and economic equity plan giving them priority in licensing … The social equity aspect of the [Marijuana Regulation and Taxation Act] is meant to uplift historically marginalized groups through economic opportunities in the Cannabis industry and this bill furthers that effort.”

The proposed bill makes clear that, “Every New Yorker deserves the right to express and identify their gender as they choose.”

Sen. Cooney hopes the legislation will change an “unintended consequence” of New York’s recreational Cannabis law, which gives womenowned businesses licensing priority. Cooney’s concerned that the language prioritizing women will make it necessary for transgender or nonbinary people to either use the gender they were assigned at birth on applications, or forego social equity benefits. Or, as the bill states, the current law would “force certain individuals from choosing between their gender identity and receiving priority for a license.”

Photo by Sharon Mccutcheon

Cooney’s legislation was filed in mid-November and was referred to the Senate Rules Committee.

While New York is making progress standing up its adult-use industry under new Gov. Kathy Hochul, retail sales remain at least 18 months away. Notoriously impatient, New Yorkers have begun selling Cannabis in unlicensed pop-up shops, as well as through “gifting” promotions – which involve providing a “free” sample of marijuana with the purchase of an overpriced item like hats, t-shirts or snacks.

Recently, Cannabis Control Board Chair Tremaine Wright announced that such gifting promotions – or any unlicensed sales of Cannabis – are illegal, and those responsible will face “severe financial penalties.”

MEDICAL MARIJUANA MESS IN MAINE

Amajor conspiracy case involving the illegal sale of medical marijuana in Maine has shined a light on the lack of industry oversight. Thirteen people, including a prosecutor, a politician, a town manager and current and former cops, stand accused of working with a licensed caregiver to illegally sell $13 million of marijuana.

Lucas Sirois is accused of running the operation that grew Cannabis in western Maine, which was sold to people outside of the medical pot program both in and out of state.

The magnitude of the case has caused some backlash, involving a decision earlier this year by the state legislature to shut down proposed regulations that could have prevented such an operation.

The Maine Office of Marijuana Policy (OMP) had recommended instituting a “seed-to-sale” tracking system for medical Cannabis plants that would have provided regulators with the tools to stem illicit marijuana sales. But the proposal was met with criticism from the industry and the legislature voted to kill the seed-to-sale plan. Additionally, moving forward the OMP would have to consult with caregivers and patients on any potential rule changes, and the state legislature would have the final say on any new regulations.

Maine boasts more than 3,000 licensed caregivers and over 65,000 registered patients. And while OMP Director Erik Gundersen believes most are following the program’s rules, he acknowledges that illegal activity is an issue in the industry. However, given the current level of oversight, there’s little regulators can do about it.

Maine first legalized medical marijuana in 1999 and the program was expanded in 2009. In 2018, the state eliminated qualifying conditions from the MMJ law. The program has been extremely successful as sales of medical Cannabis through dispensaries have made marijuana the state’s most valuable crop. Medical sales exceeded $220 million over just a 10 month period in 2020.

Photo by Rodnae Productions

HOME GROW

IN THE GARDEN STATE?

New Jersey Gov. Phil Murphy has announced that he is “open-minded” when it comes to allowing home cultivation of marijuana.

While Cannabis legalization proved popular at the ballot on Election Day in 2020, the state has endured some bumps in the road in implementing a tax and regulate plan. However, with the recent announcement that applications for marijuana businesses will soon be accepted, the Garden State appears on its way to launching an adult-use industry.

Still, home grow has remained curiously absent from New Jersey’s plans. The legalization bill that Murphy signed into law earlier this year does not allow for adults to grow their own pot.

But in a recent interview, Gov. Murphy admitted that leaving out home growing might have been a mistake. When asked by News 12 why the state continues to prohibit home cultivation by recreational and medical marijuana consumers, the governor, who narrowly won a reelection bid in November, said he’s “not sure there’s a good answer.” Murphy then said that he is “openminded to considering adjusting” the state’s home cultivation stance.

While Murphy touted the nascent pot program, he acknowledged that “there was a lot of legitimate interest in allowing, in some form or fashion, home grow. And I would just say I’d be open minded to that discussion.”

Well, it’s better than simply shutting the discussion down.

Legislation allowing recreational and medicinal home cultivation has been introduced in the state legislature, but those bills have failed to advance.

On the plus side, more than 362,000 Cannabis cases have been expunged in New Jersey since a decriminalization law took effect last July. Additionally, prosecutors were directed to drop marijuana-related cases after Murphy signed the state’s legalization bill into law last February.

t has now been five years since Massachusetts legalized adult-use

Cannabis. Voters approved a tax and regulate plan for the Bay State at the ballot in 2016. Two years later, in 2018, the state offered the first adult-use retail sales ever on the East Coast.

Since then, Massachusetts’ marijuana market has grown into an industry leader. The state now boasts 176 Cannabis retail locations and has surpassed a whopping $2 billion in sales.

While the pot program has proven to be popular, it only passed with 52 percent of the vote in 2016. Still, residents have consistently backed Cannabis, as a medical program was approved in 2012 and the state decriminalized in 2008.

The Massachusetts adult-use program has faced issues, including host community agreements and impact fees that have been accused of encouraging Cannabis corruption, but the state has also innovated – introducing two delivery license types available exclusively to qualified social equity applicants. Continued efforts to level the playing field can help maintain Massachusetts’ status as a recreational marijuana mainstay.

“It’s been a success in creating new tax revenue and new jobs, and it’s been a success in giving local communities a new stream of tax money,” said Jim Borghesani, who helped campaign for the state’s adult-use pot law in 2016.

“We’ve seen no increase in teen use. We’ve seen not a single incident of a sale to a minor. We’ve seen no increased crime around the Cannabis facilities. We’ve seen no diminishment in business value or customer access around the locations. In other words, we’ve seen none of the negative repercussions that opponents were advocating during the legalization campaign.”