NORTHEAST NEWS

hile Cannabis consumption has never killed anyone, the legal Cannabis industry has, according to a report from the Occupational Safety and Health Administration (OSHA). That report references a worker at Trulieve’s Holyoke, Massachusetts facility who reportedly died after inhaling ground marijuana “dust.” The worker, identified as 27-year-old Lorna McMurrey, inhaled the Cannabis W‘MARIJUANA DUST’ KILLS CANNABIS WORKER dust while filling pre-rolled joints for Trulieve, according to the OSHA report. While McMurrey died on January 7, her death wasn’t widely reported until late September, when The Young Jurks podcast covered the incident. The OSHA report originally stated that, “The employee could not breathe and was killed due to the hazards of ground Cannabis dust.” However, the cause of death was ultimately removed from the OSHA report. While the organization did not provide a reason for the change, a spokesperson said the case remains open. OSHA cited Trulieve for three violations and fined the company more than $35,000. Trulieve, a multistate operator based in Tallahassee, Florida, is contesting the violations. In a statement, the company said, “OSHA conducted a thorough investigation of the Holyoke facility … PPE (personal protection equipment) was available onsite. They (OSHA) tested the air quality throughout the facility and the samples were all well below acceptable ranges.” However, according to a Boston Globe report, Trulieve’s Holyoke facility had been under investigation by the state’s Cannabis Control Commission (CCC) at the time of McMurrey’s death. The ongoing investigation was launched by the CCC in the fall of 2021 due to complaints by the company’s workers. Dave Bruneau, Lorna McMurrey’s stepfather, told the Globe that she asked him to “bring her respirators from his job as a mechanic” as “the air [at Trulieve] was full of dust.” Additionally, a former supervisor at the Holyoke facility told the Globe that workers were too afraid to raise safety concerns. Nonetheless, the District Attorney for Hampden County told the paper that there will be no criminal investigation into the incident.

Photo by Thought Catalog

NY GOV: POT SALES START THIS YEAR

ew York Governor Kathy Hochul announced in October that N the state would launch retail sales before the end of the year, as promised. While some industry experts have begun questioning whether the state would meet its 2022 deadline for the start of retail sales, the governor assured New Yorkers that licensed retail shops would open their doors before the end of the year. Hochul also stated that 20 additional dispensaries would open each month after the launch of retail sales. New York law mandates that the first retail shops are owned by

NY Governor Kathy Hochul Photo from Wikimedia Commons people with Cannabis convictions on their record. This was done in an effort to give priority to those most impacted by marijuana prohibition. The window to apply for a Conditional AdultUse Recreational Dispensary (CAURD) license ran from August 25 through September 30. In that time, the state received more than 900 applications. However, as of October, regulators have yet to grant a single CAURD license. In fact, the state’s Office of Cannabis Management (OCM) hasn’t even begun to review applications.

While some insiders are skeptical that the OCM is capable of reviewing 900 applications in time to grant licenses and allow businesses to open by the end of the year, Gov. Hochul is undeterred – insisting that the state is on track to meet its retail sales deadline.

Hochul has a great deal riding on Cannabis. After taking over for former Gov. Andrew Cuomo, Hochul got the state’s adult-use program (which had languished under Cuomo’s leadership) back on track. Now, facing a November election, the governor wants weed to be one of her signature issues.

Hochul recently told Syracuse.com, “I was given a lot of credit because within one week, I named people. I got things going. So, when I speak to people about being part of this industry, the first thing they say is ‘thank you.’ Because otherwise we could still be waiting and waiting and waiting, even for the most basic steps to be taken. So we’ve been moving along quickly.”

The governor certainly deserves credit for getting the adult-use rollout moving. Now the question is: Can she get it to the finish line?

MARIJUANA MANIFEST DESTINY IN NEW JERSEY

The start of legal sales was largely a success in New Jersey. Industry officials say that supply has kept up with demand and that they have received few complaints from consumers.

Despite the auspicious launch, a new report by Leafly warns that the state is well below 13 others when it comes to the number of adult-use shops based on population. New Jersey launched adult-use retail sales on April 21, with 12 stores offering recreational Cannabis. The state now boasts 21 retail locations. However, all 21 shops that currently sell adult-use pot in New Jersey are owned by just a handful of multistate operators.

The Cannabis Regulatory Commission, which oversees the state’s marijuana industry, is currently reviewing more than 1,300 applications for Cannabis business licenses. However, it could take over a year for a newly-licensed business to start selling recreational Cannabis in New Jersey.

According to Leafly Senior Editor Bruce Barcott, that could be a problem. “Nationally, New Jersey had the least stores per capita – and it wasn’t even close … We counted both adult-use and medical-only stores operating as of July 1, 2022, and New Jersey offered 0.3 stores per 100,000 people. The state is capturing only 20 percent, at most, of all Cannabis sales in its legal stores,” Barcott said.

This dearth of pot shops is important, according to Leafly’s report, because of a correlation between “per-capita Cannabis store licenses and illicit marijuana sales.” Essentially, more retail locations lead to fewer black market sales. “We found that the states with the most stores per capita had seen the most success in moving adult Cannabis consumers from the illicit market into the stateregulated legal market. … And the states with the least stores per capita had the least success Photo by Jess Loiterton in that migration,” Barcott said. “That’s a concern for New Jersey, because we find that when you legalize the adult possession of Cannabis statewide, but don’t allow adults to purchase legally and locally, the illicit market flourishes … And those illicit market sellers don’t check IDs. They aren’t testing their products for potency and purity. They aren’t paying taxes. There’s no limits on where they sell, or how much they sell,” Barcott explained.

In order for New Jersey to have a truly successful adult-use program, the state needs to open additional stores and fully serve the community.

VERMONT LAUNCHES

Delays in licensing outdoor cultivators led to supply issues at the start of sales in Vermont. At the retail launch, the state had only six licensed manufacturers and just two testing labs. However, the state plans to license additional cultivators and manufacturers to help meet demand. Additionally, 50 more retailers have prequalified for licenses, so the state will soon be better positioned to service consumers.RETAIL SALES

Adult-use sales kicked off in Vermont on October 1. While the state legalized pot possession in 2018, the initial law did not allow for retail sales. However, in 2020, Vermont legislators expanded the law to create a regulated market. Now, two years later, Vermont has launched its retail sales program.

The start of adult-use sales was mostly positive. Long lines developed at the state’s three initial recreational shops, demonstrating a strong demand for the adult-use market in the state.

Vermont’s first dispensaries to move from medical to recreational pot sales were Mountain Girl Cannabis in Rutland, Flora Cannabis in Middlebury and Ceres Collaborative in South Burlington – and all enjoyed a successful opening.

While there were reports of shortages across the state, consumers were mostly positive about the start of sales. And retailers recognize that cultivators and processors will ramp up production to meet demand.

Three retail locations were licensed to sell recreational Cannabis at the start of sales. By mid-October, a fourth location – Green State Dispensary in Burlington – had opened its doors.

This year, the Green Mountain State is expected to sell $3 million to $5 million of adult-use Cannabis. However, industry experts anticipate Vermont’s recreational market growing to $120 million to $145 million by 2026, according to MJBiz Factbook. In just a year’s time, in 2023, the market is projected to generate $40 million to $65 million, which would represent remarkable growth.

Photo by 2H Media

>> Continued from pg. 13 MAINE’S MARIJUANA FEES

Licensing fees for Cannabis businesses in Maine are vastly different from city to city, according to reporting done by the Press Herald.

While some jurisdictions like Manchester require a modest sum of roughly $100 a year for a license, others charge exorbitant rates – like Lebanon, where a business license will cost you $40,000 up front and $20,000 annually afterward.

According to the Press Herald, fees in Maine are all over the place and difficult to predict. Bangor charges just $217 while Sanford charges $22,500. Hallowell’s rate is a mere $250 while Windham wants $10,000, and so on.

Maine’s adult-use law allows individual jurisdictions to establish fees for opening a licensed recreational Cannabis shop, stating that the fees “must reasonably reflect the municipality’s costs associated with the license or permit procedure and enforcement.”

While most of the 60 towns and cities that have opted into the state’s legal market have set their fees in the $1,500 to $3,500 range, there is a great deal of variance.

Many municipalities claim their high licensing fees are necessary to offset the time-consuming and labor-intensive work that goes into permitting and inspecting businesses. Portland charges $10,000 for a Cannabis license and despite the cost, city officials say licenses are in high demand.

Maine’s adult-use market is slowly but steadily growing and the state hit its all-time monthly high in August, with $17 million in recreational sales. So far, in 2022, the state has sold approximately $98.2 million of adult-use Cannabis, which brought in nearly $10 million in tax revenue. However, unlike other states that allow municipalities to share in the tax revenue, Maine directs all of the 10% excise tax on adult-use pot to the state’s General Fund – leaving nothing for the cities and towns hosting Cannabis businesses.

This has, in some cases, created hefty licensing fees as municipalities feel the need to cover any potential costs that come with Cannabis businesses.

Photo by Kindel Media

Of course, allowing individual jurisdictions to set their own licensing fees can lead to Cannabis corruption, as we have seen play out in Massachusetts through host-community agreements and city impact fees, which the state has only begun to address.

High licensing fees can also prevent small-business owners and equity applicants from entering the industry.

In an effort to encourage municipalities to embrace adult-use pot businesses, and perhaps lower some licensing fees, Maine’s legislature passed a bill that will reimburse cities and towns up to $20,000 for costs connected with the Cannabis industry. The application window for jurisdictions to be reimbursed opened in September.

SECONDCHANCEFOR EQUITY IN CONNECTICUT

onnecticut’s Social Equity Council (SEC) announced it will allow seven C companies to reapply for adult-use retail licenses in the wake of a lawsuit.

The SEC came under fire when 11 Cannabis business hopefuls sued after the council rejected their applications. The Cannabis companies felt regulators changed their own requirements for social equity approval midway through the application process and then would not allow them to adjust their application.

The SEC changed their rules to require that applicants prove that 65 percent of the business’s day-to-day ownership is under the control of a qualified social equity applicant. The Council also changed its technical definition of an owner. The SEC now defines an owner as someone who “exercises operational authority over daily affairs of the business, has the voting power to direct the management agents and policies, and receives the beneficial interests of the business.” However, the companies suing the Council claim that the new rule was not adequately communicated and applicants were not given the opportunity to revise their paperwork. At least two of the 11 companies that sued the SEC will now have another chance at receiving a rec sales license. The previously rejected businesses have 10 days to resubmit their applications, this time clarifying the day-to-day ownership and control of the company. The SEC will then have 30 days to review the applications and decide which will be granted Social Equity Partner licenses. Photo by Cytonn Photography Last month the SEC acknowledged that they hired the New York-based accounting firm CohnReznick to help them review applications. And while SEC regulators had the final say in who was accepted and who was rejected, council members did not go against the firm’s decisions. CohnReznick’s contract runs through the end of the year and is worth $600,000.

President Biden recently announced his first major marijuana policy initiative. The president will use executive action to pardon all federal marijuana offenses for simple pot possession.

According to the president, “No one should be in jail just for using or possessing marijuana. Too many lives have been upended because of our failed approach to marijuana. It’s time we right these wrongs.”

Biden also encouraged governors across the country to follow his lead and offer pot pardons in their states.

Connecticut Governor Ned Lamont is ahead of the curve on this issue. In fact, the state has been working on pardoning and expunging criminal Cannabis records for a year now. And, as you might expect, Lamont fully supports the president’s new pot policy.

In a tweet, Lamont wrote, “For decades, the criminalization of Cannabis has caused injustices and created disparities throughout our country while doing little to protect public health and safety. I applaud President Biden for recognizing this injustice and taking action today on a federal level.”

Gov. Lamont clearly recognizes the racial disparity at play during pot prohibition. “At its core, the war on Cannabis has been a war on people in Black and brown communities who have been targeted by these laws at far greater rates and whose lives have been impacted for the worse as a result,” Lamont said.

Connecticut’s adult-use law, championed by Gov. Lamont, automatically expunges pot-related convictions from offenders’ records, which, Lamont said, “will make a difference in the lives of impacted people and communities across our state.”

While federal pot pardons will help thousands of people get jobs and housing they might otherwise be denied with a Cannabis conviction on their record, the real power of expungement will be felt when governors across the country follow the president’s lead and pardon Cannabis crimes in their states.

Photo by Kindel Media

RI Governor Dan Mckee Photo from Wikimedia Commons

Rhode Island regulators say the state is still on track to launch adult-use sales by the end of 2022.

The plan for Rhode Island is to open up recreational Cannabis sales through hybrid dispensaries beginning December 1. Businesses like the Thomas C. Slater Compassion Center in Providence are best positioned to kick off sales in the state. The Slater Center is currently allowed to dispense medicinal marijuana, meaning it is eligible by statute to apply for one of Rhode Island’s hybrid licenses.

The hybrid license application window is expected to open in October. Those applications will then be reviewed by the state’s Department of Business Regulation.

“The Slater Center looks forward to the start of adult-use sales on Dec. 1 and we plan to submit our application to the Office of Cannabis Regulations as soon as it’s available,” Slater spokesperson Chris Riley said.

In addition to established medical dispensaries in Rhode Island, some businesses were selected by lottery to participate in the state’s adult-use program. The process dictates that those businesses, like Massachusettsbased Solar Cannabis Company, obtain a license to operate as a medicinal dispensary and once that is complete, apply for the state’s hybrid license – which will allow them to sell recreational pot.

However, Rhode Island won’t be dotted with adult-use pot shops like other states in the region. At least not at first.

Matthew Santacroce, the deputy director of the R.I. Department of Business Regulation, expects seven dispensaries to be operational by December in the Ocean State. He anticipates nine storefronts in operation by the spring of 2023.

Other officials believe the number of operational dispensaries across the state will ultimately be even greater, but much of that will depend on how many municipalities opt out of the Cannabis industry. Those that opt in will be rewarded with adult-use tax revenue. Cities and towns that host storefronts can collect a three-percent sales tax on marijuana sold in their jurisdiction.

Rhode Island Gov. Dan McKee signed the state’s long-anticipated adult-use bill into law on May 25, establishing retail sales and legalizing possession and home cultivation of Cannabis.

REC SALES COMING TO RHODE ISLAND