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Why Did the Rich, White CEO of Curaleaf Say Social Equity Programs Go Too Far? And Is He Right?

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The commercialization of the cannabis market has resulted in its transformation from a movement to an industry. This shift brings added responsibilities, particularly in the area of social equity. As a regulated industry, the cannabis market bears a significant burden to prioritize and advance fairness and justice.

 

The marijuana industry in the US, both medical and recreational, is thriving nationwide. With legalization in various states, business owners are eager to establish cultivation sites, produce cannabis products, and open dispensaries. However, breaking into the market is no easy feat. Obtaining licenses, securing real estate, and acquiring funding require substantial financial resources and savvy political maneuvering.

 

Consequently, the opportunity to invest and reap profits in the cannabis industry has primarily been seized by well-funded corporate entities. White male business magnates with extensive networks and resources dominate these companies.

 

Despite comprising 15% of the US population, African-Americans own only 2% of the nation’s cannabis-related businesses, including dispensaries. To address this disparity, particularly in light of the disproportionate impact of the War on Drugs on African-Americans, some states and municipalities have implemented social equity programs in their marijuana regulations.

 

Social equity seeks to promote fairness and justice in public policy. These programs aim to give individuals of color and those with previous marijuana-related convictions a genuine chance to partake and succeed in this rapidly growing industry.

 

Have Social Equity Programs Fallen Short?

Efforts to incorporate more robust social equity provisions and aid programs into state cannabis laws are rising. Still, they are frequently hindered by legal battles, bureaucratic hurdles, and operational obstacles.

 

The Minority Cannabis Business Association (MCBA) asserts that existing social equity initiatives have been insufficient. A cursory examination reveals that the vast majority of profits from legal cannabis sales are flowing into the hands of a homogeneous group of well-established entrepreneurs.

 

The MCBA points to the scarcity of race-focused social equity provisions in state cannabis laws and policies as a significant contributor to the issues at hand. In essence, there is insufficient emphasis on ensuring Black, Latino, and Indigenous individuals have a place in the industry.

 

Latest Reaction from Boris Jordan

According to Curaleaf Executive Chairman Boris Jordan, social justice initiatives in states like California and New York have gone “too far.” He is prepared to take action, stating in a recent podcast with Toby Channabis on Twitter that he believes the pendulum is about to swing against these people.

 

In the recent podcast with Toby Channabis on Twitter, Jordan expressed his frustration with implementing New York’s adult-use market, prioritizing social equity candidates over multi-state operators who hold existing medical cannabis licenses.

 

According to Jordan, the New York authorities are practically endorsing illegal cannabis. He added that they are reducing testing standards for adult use, compared to medical, and allowing the sale of products that should not be sold in stores, all to keep multi-state operators out of the market.

 

Jordan explained that New York disregarded its regulations to get its two licensed adult-use stores open – one operated by a non-profit and the other owned by an individual with a criminal justice background. These stores are located in New York City. New York has broken 8 to 10 of its laws with the implementation of its adult-use program. Jordan has not ruled out the possibility of taking legal action if they don’t comply. “We’re talking to New York, but if they don’t follow the rules, we’ll sue,” he said.

 

The Pendulum Swing

Jordan emphasized that it’s different from the concept of social justice that bothers him. Instead, it’s how the programs are carried out in various states.

 

Jordan expressed that he supports the concept of social justice. Still, the execution of these programs in certain states, including California, New Jersey, Illinois, Pennsylvania, and New York, must be revised. According to him, these liberal states have used these programs as a mask to conceal the financial issues within them.

 

Jordan expressed his concern with how some states have executed their social justice programs, claiming that they have become misguided and lost sight of their original goals. He added that these programs have led to the allocation of licenses to individuals who may not be suitable to operate in the industry. Still, he also warned that as these states begin to require more revenue from cannabis operations, they will be forced to adjust their approach and realign their programs.

 

Curaleaf became the leading cannabis company in the United States three years ago with its acquisition of the well-known Grassroots chain based in Chicago.

 

What Does The Future Of Social Equity Hold?

The future of social equity in the cannabis industry is uncertain and subject to change based on various factors such as government policies, industry trends, and legal developments. However, the general trend seems to be toward greater emphasis on ensuring equity and fairness in the cannabis industry, especially for communities negatively impacted by the war on drugs.

 

This could take the form of increased social equity programs, affirmative action initiatives, and other supportive measures to promote diversity and inclusivity in the cannabis industry. However, the specifics of what the future of social equity will look like will depend on the continued evolution of the cannabis industry and related social justice movements.

 

Conclusion

Boris Jordan’s views on social equity in the cannabis industry combine support for the concept and criticism of its execution in several states. He recognizes the importance of rectifying past injustices and ensuring a more diverse representation in the industry but believes that the current programs in some states have gone astray. Jordan believes that the programs have been misused to hide financial problems and have been overly broad in their application, leading to some unexpected outcomes.

 

Despite his criticisms, Jordan remains optimistic about the future of social equity in the industry. It believes that the programs will eventually change to align to generate more tax revenue from cannabis operators. With his vast experience and knowledge of the cannabis industry, it will be interesting to see how Jordan helps shape the future of social equity.

 

SOCIAL EQUITY IN THE MARIJUANA INDUSTRY, READ ON…

SOCIAL EQUITY CANNABIS RULES

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Intoxicating Hemp Product Laws are More Complicated Than They Seem

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When Congress passed the 2018 Farm Bill, did it intend to legalize intoxicating hemp products? If it did, why didn’t it just legalize marijuana? And why didn’t it address the manufacture or sale of intoxicating hemp products?

I think the answer to all of these questions is clearly “no.” Congress did not intend to open Pandora’s Box to any form of legal intoxicating hemp product. But does what I think – or what Congress intended – even matter? Not to some courts, who think that the 2018 Farm Bill is so patently clear that it really doesn’t even matter what Congress intended.

These issues are admittedly very complicated. There are plenty of folks out there who claim that intoxicating hemp products are completely legal with no caveats. That in my view, is wrong. The law is not settled, the text of the 2018 Farm Bill is anything but clear, and whole lot can (and probably will) change with the upcoming Farm Bill. Let’s take a look at some of the issues below.

The Ninth Circuit didn’t legalize delta-8 nationally

A few years back, a three-judge panel of the Ninth Circuit held as much in AK Futures v. Boyd Street Distro (we wrote about that case here). That case is widely misquoted as having declared delta-8 THC legal nationwide. It did not. The Ninth Circuit is the appellate court for a group of western states and its rulings have no binding precedential value elsewhere.

What AK Futures actually did was affirm a preliminary ruling in a trademark dispute where legality of delta-8 products was one of a number of issues at play. In order to have a protectible trademark, the good or service must be lawful in commerce. The infringer argued that delta-8 products were not lawful. As part of the preliminary injunction, the Ninth Circuit agreed that the plaintiff was “likely” to succeed in establishing that the products were lawful, if they came from hemp and if they contained under 0.3% delta-9 THC. This was a preliminary ruling, but it’s likely that the court would rule similarly on some sort of final ruling. However, to claim that this case is the be-all-end-all for delta-8 is just, well, wrong. The case is not precedential anywhere outside of the Ninth Circuit.

An Arkansas District Court didn’t legalize intoxicating cannabinoids nationally, either

More recently, hemp attorney Rod Kight posted a blog post entitled “DID A FEDERAL COURT ORDER JUST LEGALIZE THCA AND DELTA-8 THC IN ALL 50 STATES?” Rod referred to Bio Gen LLC v. Sarah Huckabee Sanders, a district (lower) court decision out of the Eastern District of Arkansas that only ruled on a specific Arkansas law. So to answer the titular question, no, the court did not legalize anything in all 50 states. The court did, however, strike down a rather poorly drafted Arkansas law that restricted intoxicating cannabinoids on a number of grounds. (As an aside, I think Rod’s analysis is often right, but in this case we diverge.)

Most relevant to this post was the Bio Gen court’s “conflict preemption” analysis. Conflict preemption is a doctrine that finds a state law invalid if it contradicts federal law – i.e., when it is impossible to comply with both state and federal law. Imagine a state law that said you did not have to comply with a federal law. You get the idea.

Now in Bio Gen, the court took the position that the state and federal definitions of “hemp” were in conflict. The court recognized that “Clearly, under the 2018 Farm Bill, Arkansas can regulate hemp production and even ban it outright if it is so inclined.” But while the state could ban hemp production, the court thought that bans on intoxicating hemp products were legal. I don’t get it either. And for some reason, the court forgot to cite the following 2018 Farm Bill provision in its conflict preemption analysis, even though it cited it elsewhere in the opinion: “No preemption. Nothing in this subsection preempts or limits any law of a State or Indian Tribe that . . . regulates the production of hemp . . . and is more stringent than this subtitle.”

While I think the Bio Gen court still had ample reasons to strike down the Arkansas law on different grounds, I just don’t get the conflict preemption argument, and I don’t think an appellate court would agree that states could not enact more stringent laws or prohibit intoxicating cannabinoids. Taking this case to its logical end point would likely result in massive re-writes of hemp laws in all states.

So are intoxicating hemp products legal?

This is not an easy thing to answer and depends on many factors. What intoxicating hemp cannabinoid are we talking about? How is it produced? Is it “synthetic” (and what does “synthetic” even mean)? And what state are we talking about?

Let’s take delta-8 as an example. Delta-8 is generally not expressed in high quantities naturally and is created by converting CBD via a chemical or similar process. The Controlled Substance Act prohibits synthetic THCs, and DEA’s 2020 interim final rule stated that any quantity of synthetic THC is controlled. So according to DEA, delta-8 is illegal. On the other hand, I’ve long argued that under the text of the 2018 Farm Bill, there’s a good argument that delta-8 is legal – even in spite of what seems like clear Congressional intent to the contrary. That’s because the 2018 Farm Bill defines “hemp” as follows:

The term “hemp” means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.

In other words, if you take hemp and make something with it, that thing is legal. This is not the position of DEA, but is evidently the opinion of the aforementioned three-judge Ninth Circuit panel. I tend to think that court was right, but at the end of the day, this is by no means a conclusive ruling. Other courts of appeal or the Supreme Court may disagree.

Let’s take another common intoxicating hemp product: THCA flower. I wrote a longer post about that recently here. In a nutshell, people argue that because THCA flower has less than 0.3% delta-9 THC, it is “hemp” even if it has 5% or 20% THCA – even though THCA converts into delta-9 THC. DEA has pretty vocally disagreed with this. In this case, I think the THCA advocates are wrong. I outlined my position in the prior post and we’re well over 1,000 words by now so I won’t recite it again.

Moreover, for any intoxicating cannabinoid or intoxicating hemp product, we also need to look at state law. A number of states outright ban smokable hemp or delta-8 products. Other states (like California) have total THC limits that de facto ban many intoxicating hemp products. No matter what you may think about federal law, those states have their own laws. And unless and until courts in those states start issuing conflict preemption rulings, those laws will be upheld.

Is it wise to sell intoxicating hemp products?

This is a hard question to answer but there is no way to be 100% safe or 100% legal. If someone is in a state that allows such products, and has a good federal law argument, the risks are lower. If someone sells THCA flower online in all 50 states, for example, the risks are very high. Moreover, there are a million different practical risks that people almost never consider when looking at the laws. As I mentioned in my THCA post:

[P]ractically speaking, claiming that THCA products are legal is a tough sell to law enforcement or a court that is not familiar with the nuances of federal hemp laws. Imagine a truck driver gets pulled over with a car full of THCA products with 25% THCA. Those products, when tested, will have levels of THC in the double digits. That driver is going to jail, and will have to do their best to persuade a court that a gap in testing requirements under the 2018 Farm Bill makes their product lawful. Even assuming that argument is solid, there are just too many possibilities that law enforcement won’t agree. This is an issue that would likely need to be resolved in the appellate courts, which would be expensive, time consuming, and risky.

Even if someone has what they believe are airtight legal arguments why their intoxicating hemp product is legal, they often fail to consider how costly it would be to get a court to agree. And how long it would take. And how hard it would be to explain to a court or jury. Thinking about the law is not sufficient. You have to consider reality. And reality isn’t cheap or easy.

Indeed, this kind of thing seems to keep happening. Take this example, where a South Carolina man was reportedly arrested for allegedly selling THCA flower that tested over 0.3%. Or this similar example out of Texas. These are just a few reported examples. The point is that being on the right side of the law doesn’t mean you won’t have to pay a boatload of money to be proven right.


When it comes to intoxicating cannabinoids, nothing is easy. Be very skeptical of folks who say that X is legal in all 50 states or that there is no risk with Y. Stay tuned to the Canna Law Blog for more updates on intoxicating hemp products.



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Smoke Weed to Get Skinny?

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lose weight with cannabis

One of the most prominent effects of marijuana use is the undeniable craving for food that often ensues, commonly referred to as “the munchies.” When this sensation takes hold, no bag of chips, pack of Oreos, or any other sugary, salty, or fatty indulgence is spared. Interestingly, one might assume that all this snacking would lead to users piling on extra pounds. However, a recent study suggests that the opposite might be true.

 

In this study, researchers scrutinized Body Mass Index (BMI) data from 33,000 participants participating in the National Epidemiologic Survey of Alcohol and Related Conditions. They compared the BMI of individuals who used marijuana with those who did not, all aged 18 and older, over three years.

 

While they unearthed a slight average weight discrepancy between users and non-users, amounting to approximately two pounds, this modest variance remained consistent throughout the entire study cohort.

 

Omayma Alshaarawy, the lead author of the study and an assistant professor of family medicine at Michigan State University, remarked, “A two-pound average difference may not appear substantial, but we identified this trend within a diverse group of over 30,000 individuals, each exhibiting a range of behaviors, and yet, we consistently obtained this result.”

 

Moreover, the study revealed that marijuana users appeared to experience less weight gain over time than their non-using counterparts.

 

“Over three years, all participants demonstrated an increase in weight, but interestingly, those who used marijuana experienced a smaller increase than those who never used,” noted Alshaarawy. “Our study contributes to the growing body of evidence indicating this counterintuitive effect.”

 

Other studies have also observed a similar association between marijuana use and lower rates of weight gain and obesity. However, the exact cause remains a matter of debate. It is possible that certain cannabinoid compounds in marijuana influence metabolism in a manner contrary to popular belief, or it could be that users adjust their behavior to offset the extra calories.

 

“It might be more of a behavioural aspect, with individuals becoming more mindful of their food intake due to concerns about the munchies after using cannabis,” Alshaarawy suggested. “Alternatively, it could be the cannabis use itself, which may alter how specific cells or receptors in the body respond, ultimately affecting weight gain.”

 

Regardless of the underlying reasons (which could encompass metabolic and behavioral changes), the researchers emphasized that marijuana should not be viewed as a weight loss or maintenance aid.

 

“People should not regard it as a means to control or even reduce weight,” Alshaarawy cautioned. “There are numerous health concerns associated with cannabis that far outweigh its potential modest positive effects on weight gain.”

 

Furthermore, it’s important to note that this observational study focused on identifying correlations rather than establishing causation. This research does not prove that marijuana facilitates weight loss; it simply observes a consistent correlation over three years. To comprehend why this correlation exists, further research is required.

 

For those curious about why marijuana triggers the munchies, recent research suggests that THC, the psychoactive compound in marijuana, initiates a sequence of brain activity in neural networks responsible for our sense of smell and taste. When this activity reaches a certain threshold, the brain responds as if we are ravenously hungry, setting off the quest for snacks. However, this finding is based on experiments with mice, so the exact mechanism of the munchies in humans still needs to be determined.

 

The Persistent Two-Pound Gap: Examining the Weight Difference

 

In a study encompassing over 30,000 participants, researchers set out to explore the impact of marijuana use on body weight by scrutinizing Body Mass Index (BMI) data. What they found was intriguing – a consistent, albeit modest, average weight difference of approximately two pounds between marijuana users and non-users over three years.

 

This revelation challenges conventional wisdom, as the “munchies,” a well-known side effect of marijuana consumption, typically conjures images of voracious snacking and, consequently, weight gain. However, the study’s data consistently defied this expectation.

 

While seemingly minor, the two-pound disparity remained remarkably stable across diverse participants, each with a range of behaviors and lifestyles. Omayma Alshaarawy, the study’s lead author and an assistant professor of family medicine at Michigan State University, noted that while two pounds might not seem substantial individually, it becomes noteworthy when observed across such a large and varied cohort.

 

This persistent difference prompts important questions about the relationship between marijuana use and body weight. Is it purely a matter of behavior, with users compensating for munchies by making more mindful dietary choices? Or does marijuana itself influence metabolism or specific receptors in the body, affecting the rate of weight gain? To uncover the true cause, further research is essential.

 

While this initial finding piques curiosity, it’s crucial to approach it with caution. This study was observational, focusing on identifying correlations rather than establishing causation. Therefore, it does not definitively prove that marijuana use leads to reduced weight gain. Instead, it highlights an intriguing pattern that invites deeper investigation into the complex interplay between marijuana, appetite, and body weight.

 

Possible Explanations: Unraveling the Cannabis-Metabolism Connection

 

Understanding why marijuana users tend to gain less weight than non-users has sparked various theories, offering intriguing insights into this perplexing phenomenon. One prominent hypothesis revolves around the influence of cannabinoids, the active compounds in marijuana, on metabolism. It is suggested that certain cannabinoids may interact with the body’s metabolic processes in ways that counteract the expected weight gain associated with increased calorie consumption. Nevertheless, the precise mechanisms responsible for this potential metabolic impact remain an area of active investigation.

 

Another theory highlights the role of behavioral adjustments among marijuana users. When individuals partake in marijuana and experience the “munchies,” they may become more mindful of their food intake. This heightened awareness could lead them to make healthier dietary choices to compensate for the indulgent cravings induced by marijuana. Essentially, users consciously manage their calorie intake, which might contribute to the observed reduction in weight gain compared to non-users.

 

Despite these intriguing hypotheses, it’s important to stress that correlations rather than causes are identified because the study is observational. As a result, even while these ideas offer important insights into the potential mechanisms at work, further research is absolutely necessary to fully understand the complex interactions between marijuana use, metabolism, and behavior in the context of weight management. We might better know how marijuana affects weight gain by interacting with the intricate systems of the human body as scientists continue to investigate this intriguing connection.

 

Bottom Line

 

The study disproves popular beliefs about the “munchies,” showing a consistent association between marijuana usage and a somewhat reduced rate of weight gain. Although the two-pound difference may appear negligible to an individual, its consistency over a wide range of people justifies further research into the intricate interactions between marijuana use, metabolism, and behavior. However, since this data is observational and does not prove causation, it is crucial to treat it cautiously. The study also highlights that due to several linked health issues, marijuana should not be used as a weight reduction or maintenance assistance. More investigation is required to determine the precise processes underlying this occurrence and to provide a more thorough knowledge of how marijuana affects appetite control and weight gain.

 

CANNABIS LOWERS YOUR BMI? READ ON…

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CANNABIS LOWERS YOUR BMI IN MOST RECENT MEDICAL STUDY?



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Wisconsin Legalization Bill Introduced – Canna Law Blog™

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Wisconsin may soon become the latest U.S. state to legalize adult-use cannabis. On September 22 of this year, a bill drafted by Sen. Melissa Agard (D-Madison) and Rep. Darin Madison (D-Milwaukee) was introduced in the state legislature. This is the latest in a series of legalization initiatives in the Badger State.

The bill would make it legal for adults in Wisconsin to legally possess up to five ounces of cannabis. Under the new law, possession over the 5-ounce limit would be considered a misdemeanor.

At present, possession of any amount of cannabis is considered a misdemeanor under state law, with subsequent possession offenses being considered felonies. It is worth mentioning that some Wisconsin localities have established more permissive norms. For example, Dane County (where the state capital Madison is located) will generally not prosecute adults for cannabis possession, where the amount does not exceed 28 grams.

Sen. Agard and Rep. Madison’s proposal would also make it legal for localities to permit the establishment of consumption lounges. It also calls for the automatic expungement of non-violent cannabis offenses from criminal records.

Sen. Agard has referred to Wisconsin as an “island of prohibition,” noting that “right now, we are seeing our hard earned money go across the border to Illinois, Michigan, and Minnesota to the tune of tens of millions of dollars each year” (readers unfamiliar with Wisconsin’s geography can check out the state highway map; the state’s two largest cities are both about an hour away from the Illinois border).  This highlights an uncomfortable reality for those states that buck the legalization trend of their neighbors: Their residents will still be able to get cannabis legally, yet the economic windfall will stay on the other side of the state line. Geography is destiny, as the consequences of legalization next door demonstrate.



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