Tag: cannabis

  • The Golden Age

    The Golden Age

    Killing THCa will end a renaissance of cannabis reform, access and business opportunity.

    By Rod Kight

    As I write this, I sit in the Charlotte airport awaiting a flight to Las Vegas, where I will speak at MJBizCon on a panel about rescheduling.

    As I prepare for the panel and think about the implications of rescheduling, it’s impossible to ignore a fundamental reality, namely that “cannabis” is already mostly descheduled. Cannabis and all its cannabinoids, including delta-9 THC in concentrations up to 0.3 percent by dry weight, were completely descheduled at the end of 2018, when the current Farm Bill was enacted.

    In other words, we simultaneously watch the Drug Enforcement Agency (DEA) rescheduling saga play out in the hope that marijuana and its cannabinoids will eventually be downgraded to schedule 3, while we live in a world where cannabis and all its cannabinoids were removed from the Controlled Substances Act (CSA) six years ago. Of course, I’m referring to hemp.

    We Are Living in a Cannabis ‘Golden Age’

    Amidst the high drama of the “cannabis civil war,” it is easy to overlook the fact that we are living in a cannabis “Golden Age”—a renaissance of cannabis reform, access and business opportunity. There’s never been a time in history when you could legally order cannabis flower to your front door (not to mention a host of other cannabis products, including THC beverages, gummies and vapes).

    It’s been almost 100 years since an individual or a small company could legally grow, manufacture and/or sell cannabis and cannabis products across state and international lines. Today, cannabis consumers have a wealth of product choices that are sold by a wide array of distribution outlets, from dispensaries to grocery stores and consumption lounges to e-commerce websites. At the same time, cannabis entrepreneurs have more options to enter the industry than ever before.

    Over the past six years, cannabis rapidly expanded across the country, resulting in normalization in ways most people did not anticipate. This trend continues to grow.

    Killing THCa Ends This Golden Era

    Killing THCa ends this Golden Era. As most people who read my blog know, “THCa flower” is just “cannabis flower” that complies with the Farm Bill’s current legal definition. It’s not new. It’s not synthetic. It’s the same thing we’ve been smoking for thousands of years, and, as I write this, it is still federally lawful.

    Despite all the amazing cannabis form factors to which we have access, flower remains “ground zero,” the mother of every cannabis product. For many, smoking or vaping cannabis flower is the go-to method of use. If we kill THCa, we effectively “reschedule” cannabis and eliminate billions of dollars of legal cannabis flower from the market.

    Closing this so-called “loophole” in the next Farm Bill ends an unprecedented era of massive cannabis reform, normalization, business growth and consumer choice. The idea of rescheduling cannabis that was legalized in 2018 should be sinful to anyone who truly believes in and cares about the plant. Regardless of Congressional intent, the 2018 Farm Bill is unambiguous. It offered an opportunity to the cannabis industry.

    Rather than working to undo this windfall based on presumptions about what Congress did or did not want, we should embrace and expand on it. This is particularly important as we watch the DEA drag its feet by simply moving marijuana to schedule 3, a move that is important but not nearly as powerful as saving THCa and preserving the definition of “hemp.” Even better, we should expand the definition of “hemp” as proposed in Rand Paul’s hemp bill, which increases the delta-9 THC limit to 1 percent without any reference to THCa.

    Let’s Regulate Hemp Properly

    I’ll close this article by stating the obvious—hemp needs to be regulated properly. This is not the article to discuss regulatory issues, but those who were involved in the early days of cannabis reform remember that it took time to get regulations worked out. (Most people would argue that California and many other states went overboard in their efforts, but that’s also better suited to another article.) The point is that the hemp industry is young, and regulating any new industry takes time.

    Importantly, though, the hemp industry is actively pushing to be better regulated. I contend we need a structure focused on the “Three Pillars”: age-gating, safe manufacturing and standardized labeling. To that end, the U.S. Hemp Authority expanded its certification program to include intoxicating hemp products, and other organizations, such as the American Healthy Alternatives Association, lobby for reasonable regulations. The National Cannabis Industry Association has made positive moves for hemp. It will take some time, but rather than throwing the baby out with the bathwater, we should focus on working out proper regulations.

    Conclusion

    Killing THCa will end the cannabis Golden Age, will set cannabis reform back in a way that may take decades to recover from, will push billions of dollars of cannabis back onto the black market and will restrict access to millions of people. Let’s not do that.

    Rod Kight is an international cannabis lawyer who represents businesses throughout the cannabis industry.

  • Routine Failure

    Routine Failure

    The US Supreme Court to decide if a failed routine drug test amounts to racketeering.

    By Timothy S. Donahue

    The U.S. Supreme Court has been busy this session. The court has heard several cases dealing with the nicotine and cannabis industries. Among them is the case of a truck driver who was fired from his job after a CBD wellness product marketed as THC-free caused him to fail a routine drug test. Douglas Horn sued the maker of the CBD product he took for chronic pain under a federal racketeering law for economic harm.

    A decision in the case, expected next year, could determine the ability of Americans to collect substantial damages under an anti-mob law if they lose their job after being injured by consumer products.

    The companies that manufacture the product argued to the justices that Horn’s injuries were personal rather than related to any harm to his business or property. Therefore, they contended that his case did not fall under the Racketeer Influenced and Corrupt Organizations Act (RICO). This federal law, originally enacted to combat organized crime, establishes the right for individuals who suffer injuries to their business or property due to racketeering activity to seek triple damages.

    A longtime trucker, Horn had an unblemished record over his decades of service. Like many truckers, Horn’s job required frequent drug testing to ensure compliance with federal regulations, particularly given the risks associated with operating heavy machinery on the nation’s highways. A single failed drug test could cost him his commercial driver’s license and, consequently, his livelihood.

    In 2020, Horn began experiencing chronic pain due to the physical demands of his job. After researching various treatments, he turned to CBD products for relief. CBD, or cannabidiol, is a nonpsychoactive compound derived from the cannabis plant and is widely marketed for its potential therapeutic benefits, such as pain relief and reduced anxiety. Significantly for Horn, the CBD products he chose were advertised as containing no THC—the compound in cannabis that is responsible for its intoxicating effects.

    Relying on these assurances, Horn began using CBD products regularly. While CBD is entirely legal, THC remains illegal in certain contexts. However, during a routine drug test, he tested positive for THC. Despite his protests that he had only used CBD products labeled as THC-free, Horn was promptly suspended and later terminated from his job. Unable to find another position due to the failed drug test, Horn faced financial ruin.

    Horn filed a lawsuit, claiming that the producers of Dixie X committed mail and wire fraud that resulted in harm to his “business or property.” A federal district court ruled against Horn, but the New York-based 2nd U.S. Circuit Court of Appeals allowed his suit to move forward. The company appealed to the Supreme Court a year ago, arguing in part that the RICO Act never contemplated “garden-variety products-liability” suits. The justices agreed to hear the case, recognizing its broader implications not only for the CBD industry but also for the interpretation of federal law and consumer protection standards.

    The CBD companies argued that they were operating within the bounds of federal law, particularly under the 2018 Farm Bill, which legalized hemp-derived CBD products with THC levels below 0.3 percent. They contended that any trace amounts of THC in their products were legal and that they had not intentionally deceived consumers. The companies also asserted that RICO was not the appropriate vehicle for this type of claim, arguing that it was intended to address criminal enterprises, not businesses engaged in legal commerce.

    However, Horn’s legal team countered that the companies’ actions constituted a pattern of fraudulent activity, directly causing harm to consumers like Horn. They argued that RICO could be applied in this case because the companies knowingly misled consumers about the contents of their products, thereby violating federal laws and causing tangible damages.

    Lisa Blatt, representing the manufacturers, stated during the hearing that Horn’s unwanted ingestion of THC constituted an injury to his body—essentially a “personal” injury—and not an injury to his “business or property.” She argued that Horn’s economic losses were the “damages he sustained” due to that injury.

    Easha Anand, representing Horn, argued that the lost employment is an injury to “business” that should bring the case within the wheelhouse of RICO. The lower court agreed with Horn, permitting his suit to proceed before the companies took the case to the Supreme Court. The American Association for Justice agreed with Anand and urged the Supreme Court to side with the trucker.

    Unlike its criminal counterpart, the companies contend that the civil RICO statute explicitly states that a plaintiff must be “injured in his business or property.” They argued that this wording indicates an intent to exclude the other primary type of injury recognized by the law —injury to the person—typically the basis for hiring “personal injury” lawyers.

    Horn’s premise—that civil RICO is available if the “personal” injury leads to “business or property” damages—would have sweeping implications, the companies argued, making RICO available to any tort plaintiff who can produce a receipt for lost wages or other economic loss. And the Clayton Act, a critical antitrust statute, Blatt told the justices, limits private suits to plaintiffs with injuries to “business or property,” for which the Supreme Court routinely has rejected personal injury claims. The same result, she argued, should apply here.

    For Horn, though, “injured” is the same thing as “harmed,” and the harm he suffered to his business (loss of employment) is a classic injury to business of the type that the civil RICO statute reaches. Anand also emphasized that in RICO, Congress made clear that the act “shall be liberally construed to effectuate its remedial purposes.” That rule of construction, she said, suggests that in the event of any doubt, the court should permit Horn’s suit to proceed.

    After more than an hour of argument, it appeared that the case could divide the court’s conservative justices, some of whom seemed sympathetic to Horn’s position and others wary of opening up the ability for people to seek significant awards for run-of-the-mill injury claims. During Anand’s presentation, Chief Justice John Roberts stated that the limitation on “business or property” is intended to be a significant constraint on the scope of RICO, which he views as central to the law’s purpose. He suggested that Anand’s position could undermine this important limitation.

    Justice Brett Kavanaugh was even more pointed, criticizing the idea that Horn could “get around that limitation … by characterizing the lost wages or medical expenses as separate injuries to your business or property.” And Horn’s position, Kavanaugh warned, would create “a dramatic, really radical shift in how tort suits are brought throughout the United States.”

    Justice Elena Kagan challenged Blatt’s reading of the text. Kagan pushed Blatt to assist her in figuring out “the most normal, natural reading” of the statutory language.

    “If you’re harmed when you lose a job, then you’ve been injured in your business, haven’t you?” Kagan asked the lawyer for the companies. The law, Kagan said, “just says if you’ve been injured by a RICO violation in your business, which includes your employment, then you’re entitled to threefold damages.”

    The Supreme Court’s decision in the Horn case could significantly impact both the trucking and cannabis industries. If the court rules in favor of Horn, it may lead to an increase in lawsuits against CBD companies, potentially changing the legal landscape for the industry, according to legal experts. Furthermore, such a ruling could prompt Congress to reconsider the 2018 Farm Bill and related legislation to establish clearer CBD product guidelines.

    If the court rules in favor of the CBD companies, it may enhance the current regulatory framework and limit the use of RICO in cases involving cannabis products that are legal under state law. This outcome could provide some reassurance to the cannabis industry, which has frequently encountered legal uncertainty due to the conflicting laws between federal and state regulations.

    The case not only affects the parties directly involved but could also establish a precedent for how courts manage disputes in industries where state and federal laws conflict. Additionally, it may shape how companies address advertising and product labeling in sectors with new and changing regulatory frameworks.

    Consumer protection advocates have also commented on the case, arguing that companies should be held accountable for their claims, particularly in industries where health and safety are at stake. They see the case as a critical test of whether existing laws are sufficient to protect consumers in the rapidly evolving cannabis market.

    The Horn case touches on fundamental issues of federalism, consumer protection and the intersection of law and commerce in a rapidly changing industry. For Horn, the case represents a fight for justice after a devastating blow to his career. For the CBD companies, it is a battle to protect their business practices and the legitimacy of an entire industry.

    Regardless of the outcome, the decision will likely have a lasting impact on the legal and regulatory landscape for CBD products, the trucking industry, and beyond. The Supreme Court’s ruling will not only decide the fate of one trucker but could also shape how emerging industries are regulated and held accountable under U.S. law.

  • New Bill May Legalize Recreational Weed in Texas

    New Bill May Legalize Recreational Weed in Texas

    Texas may join several states in legalizing recreational marijuana if a bill is passed in the next legislative session.

    If passed, the bill would let adults ages 21 and older possess, use and transport marijuana for personal use, up to 2.5 ounces. Up to ten ounces of marijuana could be possessed legally if stored in a secure location.

    It would also require cannabis products to be clearly labeled and have child-resistant packaging, WFAA reports.

    State Rep. Jessica Gonzalez filed the bill in November, to be considered during the next legislative session. The next session runs from Jan. 5 to June 2, 2025. If the bill passes, it will go into effect Sept. 1, 2025.

    The bill would have limitations. Smoking marijuana in public would remain illegal, as would smoking in a vehicle on a public road.

    Texas would join 24 other states in legalizing recreational marijuana. The Lone Star State established a medical marijuana program through the Compassionate Use Program in 2015 and is among the 38 states that allow it for medical use.

    However, it’s unlikely that the new bill will be passed as Texas officials continue to tighten regulations on marijuana issues statewide.

  • AYR Wellness Expands to Include Disposable Vape

    AYR Wellness Expands to Include Disposable Vape

    AYR Wellness Inc., a U.S. multi-state cannabis operator, has expanded its Later Days brand to include a line of pocket-friendly vapes with new flavors.

    Patients and adult-use customers in Massachusetts, New Jersey, Nevada, and Ohio can begin exploring AYR’s newest vape offering starting November 25th, with additional markets to follow later, according to a press release.

    The collection of compact disposables offers a discrete delivery system, a 280mAh battery, a USB-C charging port and an oil window. Later, Days Vapes is launching with five flavors: Sweet Strawberry, Juicy Mango, Frozen Watermelon, Winter Mint, and Georgia Peach. The easy-to-use devices will initially be available in a 1g size in all states, with a 2g size launching in New Jersey and Massachusetts in early 2025.

    “We’ve placed a major emphasis on both rationalizing our brand portfolio and enhancing product selection, with hardware designed to deliver excellent experiences for our customers,” said George Denardo, chief operating officer at AYR. “Later Days stands out in a crowded vape market with a unique blend of creativity, innovation, and quality.

    “The fun and familiar format, combined with a range of refreshing mint and fruit-forward flavors, addresses what a growing segment of cannabis consumers are looking for.”

  • Ispire Launches VLT ‘Reloadable’ Cannabis Vape

    Ispire Launches VLT ‘Reloadable’ Cannabis Vape

    Ispire Technology announced the launch of VLT, a groundbreaking vaping pod system that redefines the 510-thread experience. VLT’s proprietary reload system offers a sustainable and eco-friendly solution that empowers consumers to take control of their vaping devices, addressing key concerns about environmental impact and disposable hardware waste.

    “VLT is a transformative step forward for cannabis vaping,” said Michael Wang, co-CEO of Ispire. “We’ve combined the familiarity of 510-thread devices with a versatile reloadable system that gives our partners and consumers true ownership of their vaping experience while tackling the environmental and economic challenges that come with disposables.”

    Sustainability and Eco-Friendly Design

    Unlike disposable vapor products that contribute to electronic waste by discarding the entire device, including the battery, VLT’s reusable system promotes sustainability by allowing consumers to reload their pods. This means the battery isn’t thrown out with each use, reducing electronic waste and making the product more environmentally friendly.

    The eco-friendly design, featuring a reusable battery and multiple pod sizes, reduces electronic waste and supports Ispire’s commitment to environmental responsibility. A portion of VLT’s proceeds will be donated to organizations dedicated to reducing non-recyclable waste, making VLT a plastic-neutral product.

    Cost and Operational Efficiency

    VLT’s reloadable pods offer a greener alternative and are cost-effective compared to traditional disposable systems. For manufacturers, VLT drives operational efficiency through the Ispire ONE filling machine, cutting labor costs and maintaining product integrity. VLT’s airtight design preserves the natural terpenes in cannabis extracts, enhancing flavor profiles and extending shelf life.

    Elevating the 510-Thread Experience

    VLT elevates the vaping experience by merging the convenience of disposables with the reliability and performance of the 510-thread system. Available in a variety of pod sizes, colors, and fully customizable options, VLT caters to the needs of THC, CBD, and alternative cannabinoid users.

    The advanced pod technology ensures maximum terpene preservation with an airtight chamber that prevents evaporation and ensures every draw delivers a consistent and premium experience.

    “Disposable vapes have contributed significantly to electronic waste, but with VLT, we’re giving consumers the power to not only save money but also reduce their carbon footprint. VLT offers a premium, sustainable experience without sacrificing convenience or affordability,” Wang stated in a release. “It’s an ideal solution for multi-state operators (MSOs), single-state operators (SSOs), and brands seeking sustainable growth while offering consumers a smarter, eco-friendly alternative to disposables.

  • Nebraska Legalizes Medical Marijuana

    Nebraska Legalizes Medical Marijuana

    Credit: MikesCh112

    Medical marijuana is now legal in the state of Nebraska after voters approved a measure on Tuesday.

    Two medical marijuana ballot measures were on the Nebraska ballot; 70.7% of voters approved Initiative Measure 437, and 66.9% approved Initiative Measure 438, media reports.

    Initiative Measure 437 establishes a new statute that will allow the use, possession, and acquisition of up to 5 ounces of cannabis for medical purposes by a qualified patient with a written recommendation from a health care practitioner. The statute will also allow a caregiver to assist a qualified patient with these activities.

    Initiative Measure 438 establishes a new statute that makes penalties inapplicable under state law for the possession, manufacture, distribution, delivery, and dispensing of cannabis for medical purposes by registered private entities. The statute will also establish a Nebraska Medical Cannabis Commission to regulate such activities.

  • Honeywell to Make Chemicals From Industrial Hemp

    Honeywell to Make Chemicals From Industrial Hemp

    Credit: Wolterke

    Honeywell has announced a partnership with a US bioenergy company to produce biochemicals from industrial hemp and other non-food crops.

    Honeywell, a huge multinational corporation, has its fingers in several pies, including energy and sustainability solutions. SGP BioEnergy is a fully integrated bioenergy products development firm based in New York, according to media reports. The pair announced last week that they are teaming up to develop new technology to convert industrial hemp and other biomass materials into biochemicals that can be used to produce plastics and other everyday items.

    Under the arrangement, Honeywell will develop new feedstock tech and ongoing operational support and workforce training, while SGP BioEnergy will provide the infrastructure, workforce, and second-generation feedstock via its “Ready. Grow” program. The program delivers low-carbon-intensity feedstocks with full traceability and sustainable certification using the International Sustainability and Carbon Certification (ISCC).

    “By using hemp and other non-edible feedstocks to produce these important chemicals, Honeywell and SGP BioEnergy are helping to reduce the world’s reliance on fossil fuels without impacting the food chain,” said Honeywell’s Bryan Glover.

    While hemp can be used as a food crop, industrial hemp, as the name suggests, can be used for other purposes, including cordage, building materials, textiles, paper, biofuel, and bioplastics. Furthermore, it can help restore soil integrity to damaged and depleted farm soils.

  • Lab Dismisses Lawsuit Against 13 Competitors

    Lab Dismisses Lawsuit Against 13 Competitors

    Credit: Victor Moussa

    Anresco Laboratories and Infinite Chemical Analysis Labs have dropped their lawsuit against 13 competitors. The lawsuit alleged that the competitors manipulated marijuana testing results to gain an unfair advantage.

    According to court documents, the two California-based labs filed a dismissal without prejudice on Aug. 3 in U.S. District Court for the Central District of California.

    Josh Swider, co-founder and CEO of San Diego-headquartered Infinite Chemical Analysis Labs, told MJBizDaily he plans to file a new lawsuit against the defendants.

    “We stand by the allegations and merits in the complaint filed in federal court,” he said.

    “However, with further analysis, and as each of the defendants is aware, we anticipate filing a new complaint very soon.

    “We look forward to providing further comment upon the filing of this new complaint.”

  • Cannabis Research Institute Opens in Chicago

    Cannabis Research Institute Opens in Chicago

    Credit: Spiroview

    Illinois has launched the Cannabis Research Institute (CRI), a first-of-its-kind center in the American Midwest for innovative pot studies.

    The new research hub announced last week will be a joint venture between the State of Illinois, the City of Chicago, and Discovery Partners Institute (DPI), part of the University of Illinois system.

    The institute’s aim is to develop a comprehensive body of data and research to educate the public about the socio-economic and scientific impacts of pot production and usage.

    The institute plans to undertake broad research covering everything from crop management to social impacts and health and wellness, media outlets report.

    Example topics will include the efficacy of pot and cannabis extracts for treating medical ailments such as inflammation and anxiety; the impact of legalization on the community and broader society; public health ramifications of legalizing adult-use cannabis; and the improvement of pot plants through controlled environmental conditions.

    To help ensure the CRI accomplishes those goals the DPI will be forming and leading a research team comprised of different communities, research institutions, businesses and government authorities.

  • North Carolina Cherokee’s Open Pot Sales to All

    North Carolina Cherokee’s Open Pot Sales to All

    Credit: Daboost

    The Great Smoky Cannabis Dispensary opened Saturday for its first recreational marijuana sales for anyone over the age of 21.

    It’s another first for the state of North Carolina, where marijuana remains illegal outside of the Eastern Band of Cherokee Indians’ (ECBI) territory.

    The dispensary first opened on April 20, 2024, for medical cannabis purchases. A referendum was then passed in July to begin recreational sales, following a 2021 ordinance approved by the Eastern Band of Cherokee Indians, which legalized medical cannabis within the Qualla Boundary.

    “We’re a sovereign nation, so we set it up to let people come visit, explore our community, visit our people, just come in and help themselves to any cannabis need they need,” Boyd Allen, a Cherokee tribal representative, said Saturday, according to local media.

    Despite laws passed by the ECBI, marijuana remains illegal in the rest of the state. The sheriff of Swain County, which borders Cherokee land, said in a June interview that his department would enforce state law.

    “They need to educate their people up there that when they come off the boundary, they’re in a different world,” Sheriff Curtis Cochran said. “We’ll educate them if we catch them with it. We’ll charge them for it.”