LOCAL NEWS

RHODE ISLANDLEGALIZED IT!

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After a lengthy legislative process, Rhode Island has legalized Cannabis. On May 25, Gov. Dan McKee signed the Ocean State’s adult-use bill into law. McKee approved the landmark legislation one day after it passed both the Senate (in a 32-6 vote) and the House (in a 55-16 vote), which put the bill on the governor’s desk.

The country’s smallest state had big problems creating a compromise bill that both chambers and the governor would support. The well-documented struggles included months of negotiations and rewrites before ultimately arriving at this latest iteration of the legalization legislation.

Lawmakers originally considered three separate adult-use proposals – from the House, the Senate and the governor’s office. However, they had been stuck in neutral on legalization as legislators argued over several issues, including whether a currently existing agency or a new regulatory body should oversee the state’s Cannabis industry and whether the Senate should be allowed to appoint members to a regulatory committee (a power reserved for the governor under the state’s constitution).

While it appeared as if legalization would languish for the foreseeable future, a revised initiative advanced through Judiciary and Finance committees and was then quickly passed by the House and Senate. Now, with McKee’s signature, Rhode Island becomes the nineteenth state to legalize Cannabis.

The Ocean State’s legalization law allows adults 21 and older to purchase and possess up to an ounce of pot, with as much as 10 ounces permitted to be stored in a household. Home cultivation is also allowed, with a maximum of six plants for personal use.

The new law also includes automatic expungements of past convictions for Cannabis possession. The state must expunge those records by July 1, 2024. Reports indicate that tens of thousands of past pot convictions will be eligible for expungement.

Initially, the state will license 33 adult-use retailers. Nine of those licenses will go to existing medical marijuana dispensaries that must be approved and pay $125,000 to become hybrid shops, selling both medical and adult-use Cannabis. The other 24 licenses will go to new, adult-use only retailers. And 25 percent of the 24 new licenses will be reserved for social equity applicants.

When it comes to public consumption of pot, local jurisdictions will be allowed to decide their own rules, which will be established through an ordinance.

The new law’s possession and home cultivation rules are effective immediately, meaning Cannabis is now legal in Rhode Island. However, adultuse sales aren’t expected to begin until December of 2022 at the earliest.

LEGAL POT LEGAL POT HAS AN IMPACT HAS AN IMPACT IN MAINE IN MAINE

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fficials in Maine credit the state’s adult-use Cannabis industry with helping to bring down blackmarket sales. According to the Office of Cannabis Policy (OCP), which oversees Maine’s marijuana industry, O the “current illicit market has diminished more than expected” since retail sales launched in October of 2020.

The OCP is basing this optimism on a new survey from Advocates for Human Potential, which found that 64 percent of Maine residents now purchase their Cannabis legally. The study, which surveyed 2,000 Mainers, states that “those who prioritize their source of Cannabis highly and those who are younger, are more likely to use adult-use stores for their Cannabis and to have shifted to adult-use stores from other sources since January of 2021.”

Somewhat predictably, the survey also found that people who live in closer proximity to a licensed retailer are more likely to buy legal Cannabis, rather than turn to illicit sources.

For most states, creating a regulated market that eliminates illicit sales is a major goal of legalization. And Maine officials are certainly encouraged by this survey’s findings.

“Make no mistake, the findings of this report show that the implementation of the adult-use market in the state of Maine may be considered an achievement in both public health and Cannabis policy,” the study’s principal investigator, Dr. Michael Sofis, said.

Encouragingly, those who obtain their pot products from licensed retailers are no more likely to drive high or have a marijuana use disorder than those who purchase blackmarket Cannabis, according to the study.

While medical Cannabis is still king in Maine, adult-use sales are on the rise as the industry develops. “The findings of this report serve as an excellent baseline for us to measure the continued evolution of our programs,” OCP Director Erik Gundersen said in a statement.

MARIJUANA WORTH MILLIONS IN NEW JERSEY

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In its first month of adult-use sales, New Jersey took in more than $24 million. The state officially kicked off retail sales on April 21 with 12 locations offering recreational Cannabis. Since then, the Garden State has averaged almost $5 million in pot sales weekly, for a total of $24,201,875 over 212,433 transactions, according to NJ.com.

While 13 locations were originally allowed to sell recreational Cannabis in New Jersey, the state now offers adult-use pot at 16 locations across the state as three additional shops began retail sales. The new shops, operating under the Garden State Dispensary banner, are located in Woodbridge, Eatontown and Union. Each location has been quite popular since starting retail sales, as lines consistently form outside the shops and customers wait to purchase legal pot.

The launch of retail sales has gone well for New Jersey, despite starting off with a small number of retail locations – particularly when compared to other states like Arizona, which kicked off adult-use sales with 125 stores, or Illinois’ 100-shop opening. Unlike New Jersey, those states had a much larger network of medical Cannabis dispensaries in place when legalization went into effect, which allowed them to convert so many storefronts into hybrid locations selling both medical and recreational marijuana. New Jersey launched its retail sales program under the same model, but at a much smaller scale. Nonetheless, the state is expected to eventually take in billions of dollars in sales annually when the adult-use program is fully implemented. Regulators expect standalone licensed retail locations to begin selling Cannabis before the end of the year.

The recreational rollout has been so successful in New Jersey that some jurisdictions want to opt in. Originally, nearly 70 percent of the state’s towns decided to opt out of the legal Cannabis industry. In Paramus, Mayor Rich LaBarbiera is imploring the Borough Council to allow retail sales, having seen other municipalities reap huge financial benefits. “Once you get past the argument of whether it should be legal, you should embrace it,” the mayor said.

“Paramus is the retail capital of, not just the area, but the tri-state area, if not the country. If people sell stuff, they come here to Paramus … In addition to that, our voters spoke loudly - 60 percent of them voted in favor of [legal Cannabis],” Labarbiera said.

TIKTOK BLOCKS NY POT AD

New York officials attempting to promote legal Cannabis on social media got shut down. Now, they’re asking an influential app to reconsider the Cannabis clause.

New York’s Office of Cannabis Management (OCM), which oversees the industry in the Empire State, is attempting to persuade TikTok to drop its ban on advertisements that use the word “Cannabis” and allow the OCM to run its pot-related public education ads on the platform.

According to OCM Executive Director Chris Alexander, the “Cannabis Conversations” promotion answers questions including, “who can purchase Cannabis, where can you legally use Cannabis, and how one can safely use Cannabis, including protecting youth.”

While the campaign can be seen on television and billboards around New York, TikTok is viewed as an incredibly valuable advertising tool, with 75 percent of the app’s one billion users between the ages of 18 and 34. “This group includes a critical age range – those over 18 but under 21, where brains are still growing – and our messaging provides information on the risks they face at that young age if they use it,” Alexander explained.

While the OCM sent a letter asking TikTok to “reconsider your current blanket ban on advertisements using the word ‘Cannabis,’” it has yet to hear back.

People who have promoted or advocated for Cannabis on social media know all too well how restrictive certain platforms can be. Facebook and Instagram users have long complained about “shadow bans,” which wipe their pages from public searches, as well as having their content outright deleted. It is, however, strange indeed to see state government regulators petitioning a social media app to allow them to promote legal Cannabis.

“We ask [TikTok] to join us in the effort to make sure the end of Cannabis prohibition in New York is safe for residents of all ages,” Alexander writes in the letter.

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>> Continued from pg. 15 Massachusetts Collects Millions In Impact Fees

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Cannabis companies in Massachusetts have forked over more than $50 million in so-called “impact” fees since the state launched retail sales in 2018, according to a new study by Northeastern University.

The marijuana industry is booming in Massachusetts, as officials recently announced the state has sold nearly $3 billion worth of pot since adult-use sales began. However, the Bay State’s dirty little secret continues to be the Host Community Agreements that Cannabis companies are forced to sign with cities and towns in order to open in their jurisdiction.

These agreements, which are part of the state’s legalization law, include impact fees. While initially intended to help offset any costs to the host community created by pot companies, impact fees have frequently been misused and are not currently subject to any oversight.

Municipalities can charge up to 3 percent of a Cannabis company’s annual revenue in impact fees. And despite the directive that the fee is “reasonably related” to costs created by the company, there is no process in place that requires jurisdictions to justify the fees they charge.

Northeastern’s study found that cities and towns have collected $53.3 million in impact fees since retail sales began in 2018. However, that number only accounts for 47 of the 88 communities that charge impact fees – so the actual number is much higher.

Additionally, impact fees are only part of the problem with Host Community Agreements, as local officials have also demanded Cannabis companies contribute to local charities and election funds, in what amounts to legal extortion.

Unfortunately, this isn’t exactly new news. A study by a Boston law firm back in 2019 found that nearly 80 percent of the state’s Host Community Agreements are illegal. And, of course, former Fall River Mayor Jasiel Correia was convicted of extorting cash from Cannabis companies and is currently serving a six-year prison sentence.

A bill that would provide oversight for Host Community Agreements is currently, slowly, working through the legislature.

NEW RULES IN CONNECTICUT

s Connecticut implements its legalization law, the state is making several changes on the fly. One persistent problem in Connecticut, as well as in A New York and New Jersey, is Cannabis gifting – where weed is given away with an innocuous purchase or donation.

Gifting has become prominent in states where marijuana is legal, but retail sales have yet to begin. The lengthy wait for the launch of adult-use sales in Connecticut has led to impatient consumers and suppliers making use of the loophole. However, in late May, Gov. Ned Lamont signed a bill into law that bans gifting in Connecticut. Jurisdictions throughout the state can now punish ganja gifting with a $1,000 fine.

Originally, the Cannabis gifting bill called for potential prison time and a $10,000 fine. However, advocates pushed back, accusing state legislators of re-criminalizing pot. Ultimately, the measure passed with a far more reasonable punishment. New York and New Jersey have also taken a tough stance against Cannabis gifting, however, neither state has passed legislation, opting instead for cease-and-desist letters.

Connecticut lawmakers also changed a rule that capped the number of retail stores and micro-grows allowed in a municipality. Originally, the legalization law limited retail and cultivation locations to one for every 25,000 residents. The legislature has now eliminated that rule, which is considered a local zoning issue. “It’s up to towns to decide how many businesses are appropriate for their town,” Department of Consumer Protection Communications Director Kaitlyn Krasselt said. While not expected, lawmakers can bring the cap back in 2024.

Connecticut’s Cannabis changes have also impacted advertising, as lawmakers have made revisions to rules for billboards. A new law signed by the governor will only allow pot businesses licensed by the state to advertise on billboards. Prior to legalizing Cannabis, Connecticut had been inundated with billboard ads for Massachusetts marijuana shops. Now those businesses

Connecticut Governor Ned Lamont

must remove their billboards and make way for local advertising.

Additionally, billboards advertising Cannabis cannnot be visible between 6:00 a.m. and 11:00 p.m.

According to Rep. Mike D’Agostino, “It’s not a complete ban on billboard advertising. It does place what are called time, place and manner restrictions about the type of advertising you can do for Cannabis restrictions – when you can do it, where you can do it.”

Mayor Eric Adams wants New Yorkers to get high. And he’s not particularly concerned with how they obtain their Cannabis.

The mayor expressed his laid back attitude regarding “grey market” sales while attending the Cannabis World Congress and Business Exposition – a pot industry event held at the Javits Center in NYC.

Despite legalizing marijuana over a year ago, New York is still implementing its pot program and has yet to announce a start date for adult-use sales. The delay has led to unlicensed vendors selling Cannabis out of stores or trucks on the street.

While marijuana possession is currently legal in New York state, sales are not yet sanctioned. Because of this, some officials see illicit sales as a serious threat to the soon-to-be regulated market. Adams, on the other hand, is unconcerned – telling reporters at the Javits Center that he doesn’t support a crackdown on unlicensed pot sales.

“There needs to be a system of not heavy-handedness, but going in and explaining to that store that, ‘Listen, you can’t do this’ – give them a warning,” Adams explained. He did acknowledge that “some form” of punishment could be considered if unlicensed vendors continue selling Cannabis after being warned.

“If they refuse to adhere to the rules, then you have to come back and take some form of enforcement actions, such as a summons, such as, you know, talking about their ability to sell alcohol,” Adams said.

The mayor hopes this laid-back approach will help push potential pot vendors to the regulated market when it eventually launches.

Intent on being the Cool Mayor™, ‘Irie’ Eric Adams even encouraged attendees at the Javits Center expo to smoke up. While addressing the crowd, the mayor mentioned he was “a bit disappointed” that he didn’t detect “a nice scent of weed” at the event. He then told the audience, “Enjoy yourself, light up, but most importantly,” he revealed, “spend some money. We want your money,” Adams admitted.

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This is not Mayor Adams’ first controversial Cannabis stance. Earlier this year, he told reporters that he would like to see marijuana grow ops on the roofs of New York City Housing Authority (NYCHA) buildings, tended to by residents. Unfortunately for the mayor, NYCHA buildings are subsidized by the federal government, which still considers Cannabis a Schedule I narcotic. So the rooftop grow op idea was a nonstarter.

While the city has mostly taken a hands-off approach toward illicit pot sales, the NYC sheriff’s office did recently tow and impound 12 trucks and buses operated by Weed World. The ubiquitous vehicles can be seen throughout the city, selling pot products to passersby. However, the trucks were not towed due to marijuana vending violations, but rather because of unpaid parking tickets. Weed World has racked up more than a half a million dollars in unpaid parking ticket fines.

VERMONT PREPARES FOR LAUNCH

Vermont regulators have approved seven additional recreational Cannabis licenses one week after the state awarded its first such license to Rutland Craft Cannabis in Brandon.

The newly-licensed businesses will begin cultivating Cannabis to help increase supply ahead of Vermont’s adult-use sales launch on October 1.

Vermont originally legalized Cannabis in 2018 – but that law only allowed for pot possession, as it did not include a retail sales component. However, the state revised the law in 2020 and has been working toward implementing a standalone adult-use retail program.

The Cannabis Control Board (CCB), which oversees the industry in Vermont, has received 208 applications for recreational pot licenses so far, according to VTDigger. The license allows businesses to cultivate and sell marijuana in the state.

All eight of the state’s licensed businesses were social equity applicants, as Vermont’s Cannabis law requires the CCB to give priority to social equity applicants in the licensing process. After considering equity applicants, the board must then give priority to outdoor cultivators.

There is some pressure on regulators to include outdoor cultivators in the recreational Cannabis program. CCB Chair James Pepper acknowledged that the board was aware of advocates’ desire to license outdoor growers, saying, “We hear the urgency on outdoors.” Pepper also said that the board would interview additional staff to help process the new licenses. The seven new businesses to receive a recreational Cannabis license are Arcadia Cannabis Co. in Essex, DP Holdings/VT Cannabis Organics in Danville, Epona Farms in Salisbury, Family Tree in Sheldon, Great Brook Homestead in Middlesex, Snowbird Botanicals in Barnet and Valley Organics in Jeffersonville. Vermont also recently licensed two adultuse marijuana testing laboratories. Bia Diagnostics and Steep Hill Labs will test Cannabis for Vermont’s newly regulated industry. Bia Diagnostics has already been testing hemp in the state for the last three years, while Steep Hill has been testing commercial Cannabis since 2008 – with labs operating in 10 different states, as well as in Mexico and Canada. To date, nearly 60 Vermont municipalities have opted-in to the new adult-use Photo by Grav Cannabis industry.