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New York Cannabis: Microbusiness Licenses

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As we previously broadly summarized on December 27, 2022 (here), in late December 2022, the Office of Cannabis Management (“OCM”) released its first proposed adult-use cannabis rules and regulation for New York (the “Proposed Regulations”). The official document is 282 pages, so we won’t cover every detail. But we will highlight the big-ticket items, significant issues that all applicants should be aware of, and the license application process as a whole. Also, keep in mind that the Proposed Regulations are still pending as OCM receives the final public comments to the Proposed Regulations.

One of the less defined and still ambiguous portions of the Proposed Regulations relates to those applying for a cannabis license as a microbusiness, as we await on the determination of the size and scope of eligible microbusinesses.

What are microbusinesses and their licenses?

A microbusiness is a cannabis business subject to certain size and operational restrictions. The Marijuana Regulation and Taxation Act (the “MRTA”) allows certain businesses with less access to capital to enter into the legal cannabis market by applying for a microbusiness license which authorizes the small-scale production, sale, and delivery of cannabis.

A microbusiness licensee may, to a limited degree, engage in cultivation, processing, distribution, delivery, and sale of the microbusiness’ own cannabis and cannabis products. Such licensees cannot hold an interest in any other license; however, they may distribute their own cannabis and cannabis products to licensed retail dispensaries.

How to qualify for and obtain a microbusiness license

The New York Cannabis Control Board (the “CCB”) will issue microbusiness licenses to a cannabis establishment that qualifies as a cannabis producer for the cultivation of cannabis, a cannabis processor, a cannabis distributor, and a cannabis retailer. A microbusiness license authorizes the limited cultivation, processing, distribution, delivery, and sale of the microbusiness’ own adult-use cannabis and cannabis products.

The size, scope, and eligibility of cannabis microbusinesses has yet to be determined by the CCB, however, the CCB will likely issue licenses to microbusinesses in a manner that promotes social and economic equity applicants.

What can a microbusiness licensee do?

A microbusiness shall engage in cultivation and at least one of the following additional activities authorized by the Proposed Regulations for a microbusiness: (1) processing, (2) distribution, or (3) retail sale. Additionally, a microbusiness may sell cannabis to a processor or distributor; sell cannabis products it has cultivated or processed to consumers; and send cannabis or cannabis products to a processor for processing without relinquishing ownership of that cannabis or cannabis product.

What can’t a microbusiness licensee do?

A microbusiness shall not, among other things, purchase cannabis cultivated by another cultivator unless the microbusiness suffered a significant crop failure and received prior written approval of the Office.  In addition, no microbusiness or its true party of interest is permitted to have any direct or indirect interest in, including, but not limited to, being a true party of interest, passive investor, landlord, financier, or management services provider to a retail dispensary, on-site consumption, delivery, ROD, registered organization, or cannabis laboratory licensee or permittee.

Conclusion

For anyone considering applying for an adult-use license, we reiterate our recommendation of hiring an experienced, local cannabis attorney. At a minimum, understanding the overall framework of the licenses and the licensing process is a precursor to an in-depth consultation on a license application.

Stay tuned for future posts in this series, as well as coverage of New York cannabis generally.



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More New York Cannabis Program Litigation: First Amendment Challenge to Third-Party Website Rules

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On September 18, 2023, a new lawsuit was filed by, inter alia, Leafly Holdings, Inc. (“Leafly”) against the New York State Office of Cannabis Management (“OCM”) and New York State Cannabis Control Board (the “Cannabis Control Board”).

The lawsuit

This legal proceeding involves a First Amendment and other challenges to certain regulations adopted by the Cannabis Control Board. The regulations, known as Resolution 2023-32, introduce new rules under Parts 123 and 124 of the Revised Adult-Use Cannabis Regulations, which significantly restrict the ability of New York dispensaries and consumers to use third-party websites that aggregate information about cannabis products. The petitioners, including Leafly, Stage One Cannabis, LLC (“Stage One Dispensary”), and Rosanna St. John, are seeking to have these regulations invalidated on the grounds that they are arbitrary, capricious, and in violation of both the United States Constitution and the New York Constitution. They are also requesting a temporary halt to the enforcement of these regulations until the legal proceedings are resolved.

The specific provisions being challenged are:

  1. The Third-Party Marketing Ban (9 N.Y.C.R.R. §§ 123.10(g)(21) and 124.5(a)), which restricts certain types of marketing by third-party websites.
  2. The Pricing Ban (9 N.Y.C.R.R. § 124.1(b)(5)(ii)), which imposes limitations on pricing information.
  3. The Third-Party Order Ban (9 N.Y.C.R.R. § 123.10(g)(23)), which restricts the ability to place orders through third-party websites.
  4. The Third-Party All-Licensee Listing Mandate (9 N.Y.C.R.R. § 124.1(b)(2)), which requires third-party websites to list all cannabis licensees.
  5. The Third-Party Distributor Listing Mandate (9 N.Y.C.R.R. § 124.1(c)(1)-(2)), which mandates the listing of third-party distributors.

The arguments

The petitioners argue that the Third-Party Marketing Ban and the Pricing Ban infringe upon free speech rights protected by the First Amendment of the U.S. Constitution and Article I, § 8 of the New York Constitution by limiting lawful commercial speech. They also claim that all the challenged regulations are arbitrary and capricious because they either conflict with New York’s Cannabis Law, lack a rational basis, or exceed the authority of the Cannabis Control Board.

What the plaintiffs want

Furthermore, the petitioners are requesting a temporary stay on the enforcement of these regulations, asserting that they are likely to succeed in their legal challenge and that they are facing irreparable harm due to the violation of their constitutional rights and potential business losses. They argue that maintaining the status quo is in the best interest of justice, and they urge the court to invalidate these regulations on the grounds of being arbitrary, capricious, irrational, and unconstitutional.

_____

This First Amendment challenge is just the latest litigation, unfortunately, in a program that has seen a number of misfires and delays. We will continue to monitor this lawsuit, while awaiting answers on fundamental issues that the Cannabis Control Board has inexplicably failed to address. Stay tuned to our New York coverage for more.



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Does Smoking Cannabis Kill Your Brain Cells, Yes or No? Science Speaks!

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As the legalization of recreational marijuana spreads across the United States, there is growing curiosity about its impact on the brain, including concerns about potential harm to brain cells. Just as the prolonged use of alcohol, methamphetamine, and heroin can lead to irreversible brain damage, excessive and extended marijuana use can disrupt the normal functioning of brain cells.

 

This ultimately affects their ability to transmit messages (a process called brain activity). Using marijuana can damage brain cells, which in turn can manifest as various symptoms throughout the body.  Is it true or just urban legend?

 

Similar to other substances, components of marijuana interact with specific receptors in the brain. Tetrahydrocannabinol (THC), the primary psychoactive compound in marijuana, binds to the brain’s cannabinoid receptors, known as cannabinoid receptor type 1 or CB1 receptors. These receptors are linked to nerve pathways in the brain that regulate functions such as memory, appetite, pain management, and mood.

 

When an individual consumes marijuana, they may experience difficulty maintaining focus and recalling crucial information. This impairment can become more pronounced with prolonged marijuana use, impairing memory and concentration. Additionally, the drug can also impact motor skills. If individuals choose to operate a vehicle while under the influence of marijuana, they put their lives and the lives of others at risk.

 

While less research has been conducted on adults who initiate marijuana use after adolescence, recent studies have revealed an adverse association between THC and higher-order cognitive functions, such as retaining important information, planning, organizing, solving problems, and regulating emotions and behaviors. Whether these effects are reversible remains uncertain according to current scientific knowledge.

How Cannabis Affects the Brain

Although there is no definitive proof that extended marijuana use results in the death of brain cells, it undeniably has the potential to inflict harm on the brain. THC, the active compound in marijuana, interacts with the brain’s cannabinoid receptors, pivotal in governing functions like memory, coordination, emotions, and pleasure.

 

Persistent and heavy marijuana use can harm these receptors, leading to compromised brain function. The lasting nature of this damage remains uncertain, but it can significantly impact a person’s everyday cognitive abilities.

 

Below are some prevalent side effects associated with marijuana use concerning the brain:

Effect on Learning and Memory

Over the past few decades, research has demonstrated that prolonged cannabis use leads to a significant decrease in the volume of the gray matter region in the brain. This area is responsible for information processing, memory, and decision-making functions.

 

Furthermore, another study has found that extended marijuana usage can have an adverse effect on cognitive capabilities. In particular, the research revealed that intensive cannabis consumption reduced the size of the hippocampus and amygdala regions of the brain, potentially having a profound impact on memory and learning abilities.

Impeding Young People’s Brain Development

The use of marijuana has the potential to impede brain development in adolescents and young adults. The human brain undergoes continuous development until well into the late 20s, and marijuana consumption during this critical period can harm this process.

 

Elevated levels of THC, the active component in marijuana, can disrupt the brain’s normal formation of neural pathways. This disruption can give rise to enduring adverse effects. Rather than causing the death of brain cells, marijuana hampers the development of the brain in individuals who initiate marijuana use at an early age, resulting in a range of cognitive impairments.

 Reduction In IQ

A New Zealand study encompassing over 1,000 teenagers conducted IQ tests at age 13 and then again at age 38, examining their drug usage patterns. The results unveiled a noteworthy decline in average IQ points for individuals who used marijuana four or more times a week during this time frame – an average decrease of 8.

 

This study stands as the inaugural validation that frequent marijuana use, mainly smoking, can reduce intelligence. It highlights the significance of usage frequency in determining the likelihood of enduring or severe side effects.

Mental Health Problems and Addiction

Long-term marijuana use can lead to a significant and concerning side effect: addiction. Individuals who use marijuana over an extended period may develop a dependency on it, resulting in a spectrum of adverse consequences, such as mental health issues, compromised memory, and impaired cognitive function. Seeking addiction treatment can offer a path for individuals to overcome their marijuana dependence and enhance their overall quality of life.

 

Effect Of Synthetic Marijuana on the Brain

Synthetic Marijuana, a synthetic hallucinogenic substance typically sprayed onto plant material, is not intended for human consumption but has gained popularity recently. Commonly referred to as “Fake Weed,” it induces altered mental states and can lead to unusual behavior. Synthetic Marijuana is illegal and may contain toxic components that can result in an elevated heart rate, unexplained bleeding, and vomiting.

 

Like natural Marijuana, Synthetic Marijuana affects the brain by binding itself to Cannabinoid receptor type 1 (CB1) receptors, which are present in both the central and peripheral nervous systems. Synthetic Weed exhibits a much stronger binding affinity to CB1 receptors than THC, rendering it at least 100 times more potent in its impact on the brain.

 

Because CB1 receptors are distributed throughout various brain regions, the side effects of Synthetic Marijuana can be severe and detrimental. Synthetic Marijuana may cause the brain and body to experience:

Conclusion

Marijuana can induce a sense of relaxation in users, but excessive use or its combination with other substances can pose significant risks. Quitting marijuana use can prove challenging, and if you or someone you care about is struggling to quit and facing life-threatening situations, detoxification and treatment may be necessary.

 

Treatment involves removing individuals from the triggers that can lead to relapse, while counseling supports those in recovery by helping them understand and address their specific needs. Medications can also be employed to reduce cravings for Marijuana, and detoxification helps rid the body of toxins, restoring it to a healthier state. Assistance related to rehabilitation is readily available, ensuring that no one has to face addiction alone.

 

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Cannabis and Men’s Health – Does Weed Help with ED? Can Ganja Help with Going Bald? What about Belly Fat?

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Men have such a different physiology and biological makeup compared to their female counterparts. The bodies of males and females work so differently and as a result, health problems tend to differ.

 

While many conditions affect both men and women, there are some health problems that men are simply more predisposed to. This may be due to behavior since men tend to engage in more activities that lead to more disease and higher risks of injury compared to women. Other things such as hormones, anatomy, and genetics also play a role.

 

So what are the most common conditions that affect men’s health? And how can cannabis help? Since so many articles discuss women’s health and cannabis, here’s a look into common medical problems experienced by men, and how cannabis can help.

 

 

Erectile Dysfunction (ED)

 

Erectile dysfunction, previously known as impotence, is a medical condition characterized by the inability of men to achieve and maintain an erection. Erectile dysfunction (ED) is common, and it can affect even young and healthy males occasionally particularly due to stress. However, it becomes problematic when it occurs regularly or each time you’re about to have sex with your partner.

 

When it becomes routine, ED can cause issues with your intimate relationships and it should be addressed. But it can also be a symptom of more serious medical issues such as cardiovascular disease, stroke, depression, and low self-esteem. Some studies have shown that men who suffer from ED face a higher risk of strokes and heart attacks later on. Certain factors can increase the risk of chronic ED, such as being older than 50 years of age, diabetes, cardiovascular disease, chronic exposure to stress, high blood pressure, obesity, smoking, high cholesterol, frequent use of drugs and alcohol, and little exercise.

 

There are many different treatment options available for erectile dysfunction. These may include sex therapy and oral medications, oftentimes a combination of these depending on what your physician thinks may be necessary. Your doctor may also ask you to make lifestyle changes such as quitting smoking and drinking, and becoming more physically active.

 

While cannabis doesn’t treat erectile dysfunction itself, cannabis is effective in addressing the root problems of other factors that can contribute to ED or make it worse. For example, if you are frequently exposed to high stress, you can use cannabis instead of alcohol or tobacco to cope with stress and get better sleep. Cannabidiol (CBD) can also help greatly reduce high blood pressure and obesity provided that you eat right and exercise.

 

Hair Loss

 

Men suffer from much more significant hair loss compared to women. This is because dihydrotestosterone, a chemical also known as DHT, metabolizes the testosterone in men’s bodies. As a result, hair follicles shrink over time and they are no longer as effective in regenerating new hair as before.

 

Of course, there are also other factors that can speed up hair loss in men. Stress, aging, an unhealthy diet, and hormonal imbalances to name a few.

 

Cannabidiol (CBD) has been shown to be promising for hair loss. So much so, that there has been an explosion of topical hair and scalp products on the market developed with CBD. Since this cannabinoid contains a rich amount of antioxidants and amino acids, it can be extremely effective in naturally slowing down hair loss and thinning hair among men.

 

Men who suffer from regular stress can also be prone to quicker hair loss. For this reason, supplementing with CBD internally is a great way to provide extra support to your immunity to prevent hair loss. It has been shown to work well because CBD is effective in increasing blood circulation, so applying CBD topically can soothe skin while also boosting hair growth in the affected follicles.

 

Prostate Cancer

 

Only men are prone to prostate cancer, because this specific cancer affects the male reproductive organs. While the cause of prostate cancer is not very clear, men who have a family history as well as those who have unhealthy diets have been shown to possess the highest risk of developing it. Other risk factors include age, obesity, and race.  

 

Thankfully, cannabis has been promising in the field of cancer research. Both THC and CBD cannabinoids have been extensively studied for the management and treatment of various types of cancer, and prostate cancer is one of them.  Scientists have confirmed that tissue in the prostate contains cannabinoid receptors, which is why this body part is receptive to cannabinoid therapies. The benefits of cannabis for prostate cancer are so well-known, that patients have no issues self-medicating to help them heal even quicker.

 

Take note that many more studies of cannabinoids are necessary in order for medical experts to have a clearer understanding of areas where cannabinoids can help, and how much to take for it to be effective in treating prostate or other cancers. Right now, there is still a lot of clinical trials going on and we are still lacking a standardized approach for cannabis used in cancer.

 

Conclusion

 

The unique biochemistry and physiological makeup of men mean that they are more prone to certain illnesses that women are not. These here are just some of them, while women have their own struggles as well. While pharmaceutical drugs aren’t successful, some therapies can offer better success rates when used together with cannabis. Much more research is necessary, but the future is looking bright in the area of cannabis for men’s health.

 

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