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Weed News


MISSOURI REP TO WITHDRAW BILL BANNING POLICE SEARCHES OVER POT SMELL


TURNS OUT THE STATE CONSTITUTION ALREADY HAD IT COVERED

By Monica Obradovic on Fri, Jan 5, 2024 at 11:08 am

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DANNY WICENTOWSKI
St. Louis police continue to make arrests for pot possession — and most of those
arrested are black.
Missouri Representative Ian Mackey (D-St. Louis) plans to withdraw a bill he
pre-filed that would have banned behavior that's already illegal.

Mackey has, for years, attempted to bar law enforcement officers from using the
smell of marijuana alone as probable cause for warrantless searches of property.
One of the bills he pre-filed for the state's legislative session, House Bill
2132, sought to do just that.

Cannabis advocacy organization  NORML sent out a newsletter encouraging
subscribers to send a pre-written letter to their representatives to support it,
which 156 people did.  The bill also garnered coverage from regarded cannabis
industry news site, Marijuana Moment.



But the measure is entirely moot.

Article 14 of the state constitution already excludes evidence of cannabis from
being the sole basis of lawful searches — at least without "specific evidence"
indicating the pot has been used for unlawful purposes.

Mackey tells the RFT he's been accused of wasting time and money for refiling
his bill, but it was a "silly little mistake."

"I just had a stack of things that I wanted to refile that I filed before, and
it happened to be in it," Mackey says.

While there has been some doubt on whether law enforcement agencies will abide
by the state constitution, Mackey says there's no need to have a statute with
the same language as what's already in the state constitution.

"This was actually an idea that originated in our office, and I'm really happy
it ended up in the constitutional amendment," Mackey says.

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Many states where cannabis is legal have cracked down on warrantless searches
allowed by the perceived smell of cannabis.

Last September, the Minnesota Supreme Court affirmed the odor was not reason
enough to search a vehicle. The New Jersey Supreme Court upheld a similar law in
June after police used "a strong odor of raw marijuana" as probable cause to
search a man's car for an unrelated tip.

Such searches have historically contributed to the chasmic difference in
pot-related arrests between white and Black Americans, according to the American
Civil Liberties Union.

In Missouri, the constitutional amendment that makes adult-use cannabis legal
also prevents lawful marijuana activities from being the basis for a violation
of parole, probation or any type of supervised release.



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FBI SHOWS A 58 PERCENT DECREASE IN THE SHOW ME STATE SINCE 2016

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CANNABIS LICENSES

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TAGS:

 * Ian Mackey,
 * legal cannabis in Missouri,
 * police searches over pot smell,
 * marijuana arrests


ABOUT THE AUTHOR

MONICA OBRADOVIC

Monica Obradovic on Twitter
Email Monica Obradovic
Monica Obradovic is a staff writer for the Riverfront Times.
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ABOUT HALF OF MISSOURI MICROLICENSE APPLICANTS CAME FROM OUT OF STATE


THREE COMPANIES APPEAR CONNECTED TO 43 PERCENT OF THE APPLICATIONS FOR THE NEW
CANNABIS LICENSES

By Rebecca Rivas on Fri, Jan 5, 2024 at 9:52 am

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click to enlarge
Rebecca Rivas/Missouri Independent
Tiffany (left) and Anwar (middle) Lee at an outreach event in St. Louis on June
22, 2023, where the state’s new chief equity officer, Abigail Vivas (in green),
went through all the eligibility requirements for the cannabis microbusiness
program.

More than 40 percent of the owners listed on applications for state’s
social-equity marijuana licenses issued in October were from outside Missouri,
according to an annual report released by the Division of Cannabis Regulation
Wednesday.

About half of those owners came from California, Michigan, Louisiana and Arizona
collectively.

The microbusiness license program is meant to boost opportunities in the
industry for businesses in disadvantaged communities, and it was part of the
constitutional amendment to legalize recreational marijuana that voters passed
in November 2022. 



A total of 1,625 applications were submitted for 48 microbusiness licenses — 16
for dispensaries and 32 for wholesale facilities. Nearly 1,900 owners were
listed on the applications.

A central focus of the annual report is why the Division of Cannabis Regulation
may be revoking 11 of the 48 social-equity cannabis licenses issued in October,
after finding they didn’t meet eligibility requirements. 

Those applicants were issued notices of pending revocation of their licenses on
December 15, and they have until January 15 to respond with additional
information that could reverse the department’s decision.

Among those who could face license revocation is Canna Zoned, a Michigan company
that secured two of the 16 dispensary cannabis licenses — in Columbia and
Arnold. 

Both of Canna Zoned’s licenses have been deemed ineligible, according to
information the state provided to The Independent in December.

State records show Canna Zoned was connected to 104 out of the 1,048
applications that were entered into a lottery selection for the dispensary
licenses. An investigation by the Independent in October found applicants
thought they were partnering with the Michigan investor but in reality signed
agreements requiring them to relinquish all control and profits of the
business. 

Some applicants were recruited through Craigslist ads from around the country. 

Another company that used the strategy of flooding Missouri’s lottery with
applications was an Arizona-based consulting firm called Cannabis Business
Advisors. It was connected to more than 400 dispensary applicants, including six
winners. 

The state couldn’t certify the eligibility for all six of the licenses connected
to the firm’s clients.

A Missouri firm, Amendment 2 Consultants, is connected to more than 150
applicants, winning two dispensary licenses and two wholesale licenses. One of
the group’s dispensary applicants was deemed ineligible.

Abigail Vivas, who oversees the microbusiness program as chief equity officer
within the division, is constitutionally mandated to produce an annual report
for the public and state legislators by the end of the year.

In an interview with The Independent Wednesday, Vivas said the fact that a
fourth of the licensees are pending revocation shows the division is doing its
“due diligence.”

“It doesn’t matter how you applied — whether you’re part of a group of multiple
applications or a single application,” Vivas said, “we are going to look at all
the information to ensure that these are going to truly eligible individuals.”

FLOODING STRATEGY

A big question that Vivas received after the division released the winners of
the microbusiness licenses was why numerous applications had the same designated
contact person and proposed locations. Did that mean that one person was
submitting more than one application, which is against the rules? 

Vivas said she understood the concern but hopes the report clarifies that a
designated contact could be an attorney or someone outside the business who
represents more than one owner. It doesn’t have to be an owner.

There were three designated contacts who submitted 43 percent of the
applications. And while the report doesn’t state this, the numbers match those
of Michigan-based Canna Zoned, Arizona-based Cannabis Business Advisors and
Missouri-based Amendment 2 Consultants.

In some cases, numerous people who believed they were eligible came together to
submit separate applications for one business, and Vivas said this isn’t against
the rules.

“There’s nothing that prohibits a group of five people that all meet an
eligibility requirement individually, applying separately to increase their odds
of winning in the lottery,” Vivas told the Independent. “There’s nothing that
says that they can’t do that.”

If one person wins and the group wants to change ownership later, they can do
that with department approval, she said. 

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The applications with the same designated contact often had the same proposed
location as well. And that’s not against the rules either, she said.

The strategy of flooding the lottery with applications to increase the odds was
used mainly among the applications for dispensary licenses— and those licenses
also drew the most out-of-state interest. State law originally required Missouri
or majority Missouri ownership of marijuana licenses, but that was deemed
unconstitutional by a federal judge in 2021. 

When the results first appeared, there was some rumbling within the cannabis
industry that the strategy was successful — since those three designated
contacts on multiple applications landed 9 of the 16 dispensary licenses
statewide. 

However, now all nine of those licenses are pending revocation. 

When asked if it was related that the licensees with duplicate locations and
designated contacts were all deemed ineligible, she said “no.” 

 “I wouldn’t say it’s related to them having a designated contact and then
duplicate facilities,” she said. “We had people that were determined ineligible
for several reasons.”

The report states that the ineligibility issues included “failure to provide
documentation that the facility would be operated by eligible individuals.”

Other cited reasons included failure to provide adequate documentation to verify
the majority owner met the eligibility criteria and for a disqualifying felony
offense.

Overall, Vivas said she’s learned a lot through input from applicants about what
resources the division can provide in the second round — which begins in March —
to help applicants through the process. 

She said her “to-do list” includes offering educational sessions on potential
predatory lending or business agreements. It also includes trying to explore
opportunities to create a grant-funding program for the licensees, which some
other states have done to help licensees obtain capital without feeling the need
to enter into unhealthy business arrangements. 

“It’s been a fast and furious timeline of things that we had to do,” she said.
“So we’re trying to take that time now to build some of those other things into
our program.”

This story was originally published in the Missouri Independent.


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2 BILLS AIM TO CLOSE LEGAL LOOPHOLE ON DELTA-8, OTHER CANNABINOIDS


THE SPONSORS SAY IT'S ABOUT SAFETY. OTHERS SAY IT'S ABOUT LIMITING COMPETITION

By Monica Obradovic on Mon, Dec 18, 2023 at 11:34 am

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TOMMY CHIMS
Delta-8 is the latest cannabis-industry craze, even as it's currently in a state
of legal limbo.

Unregulated cannabis products would no longer be found in gas stations or
convenience store shelves if two Missouri legislators get their way next
session. 

State Representative Chad Perkins (R-Bowling Green) and Senator Nick Schroer
(R-St. Charles County) have both filed bills that would bar products containing
hemp-derived THC products, or any “intoxicating cannabinoids,” from being sold
anywhere other than licensed marijuana dispensaries. 

The bills are the latest effort to close a loophole that allows THC derived from
hemp, not marijuana, to be sold in stores in Missouri. Legislators have
specifically taken aim at delta-8 THC, which can get a person high in
concentrated amounts. 



Products containing the compound have been banned in at least 17 states and
restricted in seven more as the federal government figures out how to regulate
it. The safety concerns aren’t over delta-8 itself but other ingredients
products made with the compound could contain, such as heavy metals. 

"This legislation provides consumer protections in a portion of the industry
that has very little consumer protection,” Perkins tells the RFT.

Perkins’ and Schroer’s bills would allow the state to regulate delta-8, or any
so-called cannabinoids that activate the same receptors as delta-9 THC, the
active ingredient in marijuana. Products containing these substances would move
under the same regulatory umbrella as marijuana — and only businesses licensed
under Missouri’s marijuana program could sell them.

So if a local smoke or vape shop, for example, currently sells delta-8 products,
it would have to stop if either of the bills pass. 

Critics of Perkins’ and Schroer’s bills believe the measures are less about
consumer protection and more about limiting competition for Missouri’s
“marijuana monopoly.” A similar bill last session received the same criticism. 

“These bills are being pushed under the guise of protecting consumers, but it’s
really being done to lock-in profits for the marijuana industry,” says lobbyist
and Missouri Hemp Trade Association Executive Director Courtney Curtis. 

But Schroer pushes back on this notion. He says his bill has nothing to do with
removing competition from a free market and everything to do with consumer
safety. 

“My district, like many others throughout the state, has been plagued with
constituents using products sold in ‘head shops’ and gas stations that resulted
in them being placed in their local emergency room,” Schroer writes in an email
to the RFT. “Constituents have shared stories with me about the horrific side
effects either themselves or their children have experienced when purchasing
certain unregulated products.” 

Schroer did not respond by press time to a follow-up email asking for specifics
on what side effects his constituents experienced. 

Curtis says he’s all for regulations, but these proposals aren’t it. 

“The sheer reality of what’s being presented is just to lock in the practice of
the marijuana industry,” Curtis says. 

What is hemp-derived THC, anyway?

Hemp and marijuana come from the same species of plants, Cannabis sativa. The
main difference between the two lies in how much THC they have. Marijuana
contains the most THC, the psychoactive compound responsible for weed’s “high”
effects. Hemp contains practically no THC: less than 0.3 percent. 

What hemp does have, however, is lots of CBD, a non-psychotropic compound. While
the vast majority of hemp is used for industrial purposes (it can be processed
into hemp oil, plastics, clothing, paper and more), manufacturers harness hemp’s
CBD to produce concentrated amounts of delta-8 THC. 

In Missouri, most vendors put an age minimum on delta-8 purchases, but there’s
currently no law that would stop a child or teenager from buying the products at
businesses where they’re currently sold.

It’s legal due to the 2018 Farm Bill that removed hemp from the DEA’s schedule
of controlled substances and legalized any of hemp’s derivatives. Since the bill
effectively legalized everything that wasn’t delta-9 THC, a craze for delta-8 —
which brings about a cheaper, albeit less intoxicating, high — followed. 

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But the surge in use came with concerns about safety and consumer protections.
Delta-8 is a lesser-studied cannabinoid that is outside of the FDA’s scope.
While it’s thought that delta-8 is no more dangerous than delta-9, last May the
FDA warned against delta-8 products after an uptick in “adverse events” were
reported. A few companies have come under fire for selling delta-8 products in
packaging mimicking popular brands, such as Doritos and Jolly Rancher. 

At the very least, Missouri’s proposals for regulating all intoxicating
cannabinoids would introduce uniform taxation across all cannabis products. 

“Surprisingly, many intoxicating cannabis items sold at places like gas stations
and vape shops have been bypassing these essential safety tests and tax
contributions,” says Hippos Cannabis CEO Nicholas Rinella. The bills would close
loopholes and ensure “both consumer safety and proper financial support for
important state funds, particularly those aiding veterans.” 

As far as safety goes, Curtis, executive director of Missouri Hemp Trade
Association, says the hemp industry already performs rigorous testing. 

“We do more testing than the marijuana industry as a whole,” Curtis says. “And
if you’ve noticed with some of the issues that have come up this year, the
marijuana industry already uses hemp-derived products to make more money.” 

Earlier this year, Robertsville, Missouri, company Delta Extraction was at the
center of a massive marijuana recall over allegations that the company imported
marijuana into the state. But the company said it actually imported a hemp
product from Florida and converted it into delta-9 THC in Missouri. 

The state revoked Delta Extraction’s license in November. The crackdown on Delta
Extraction has raised the question of whether state authorities have the right
to prohibit the infusion of hemp-derived THC in marijuana products.

The upcoming legislative session will be “vastly different” in regard to
cannabis as more legislators become knowledgeable about THC products, Schroer
says. He cited the controversy surrounding Delta Extraction. 

“My legislation is a strong starting point in addressing these issues, but I am
fully aware that it is likely to be amended as it makes its way through the
legislative process,” Schroer says.

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TAGS:

 * Ian Mackey,
 * legal cannabis in Missouri,
 * police searches over pot smell,
 * marijuana arrests


ABOUT THE AUTHOR

MONICA OBRADOVIC

Monica Obradovic on Twitter
Email Monica Obradovic
Monica Obradovic is a staff writer for the Riverfront Times.


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