OLCC Commission Modifies Cannabis License Violations

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Changes reflect industry maturation, OLCC regulatory evolution

Commissioners get glimpse of cannabis equity legislation impact on agency

OREGON:  The Oregon Liquor Control Commission has taken additional action to ensure that recreational marijuana license violations better reflect the current cannabis regulatory environment compared to regulations put in place five years ago when the cannabis industry launched in Oregon. At its regular monthly meeting on April 8, 2021, the Commission also formally approved streamlining changes to processing marijuana licenses, an approach OLCC staff have already begun implementing.

In addition OLCC Commissioners learned about likely impacts affecting the agency if cannabis social equity legislation is approved by the Oregon legislature and signed into law by Governor Brown. Commissioners also approved three stipulated settlements for recreational marijuana license violations.

OLCC regulations approved in 2016, at the onset of adult-use cannabis in Oregon, aligned with guidance in the since rescinded U.S. Department of Justice Cole Memorandum, and served as appropriate guard rails for an emerging industry. The changes just approved by the Commission better reflect the regulatory oversight needed for a maturing industry.

Some of the changes assign a different category to a violation if the violation was unintentional instead of intentional. For instance, now if a surveillance camera fails licensees have more time to inform the OLCC about the problem. Another change eliminates the compounding effect of a single violation when a producer fails to notify the OLCC of a marijuana harvest; previously the OLCC assessed a separate violation each additional day the producer failed to tell regulators.

The Commission also ratified changes in the marijuana license application process designed to speed up approvals. Those changes include boosting the ownership threshold for an applicant from 10 to 20 percent, allowing more flexibility for approving business structure changes, and eliminating the pre-licensing inspection requirement prior to issuing a license.

Oregon House Bill 3112 redresses criminal and economic consequences suffered by Black, LatinX and Indigenous Oregonians related to cannabis criminalization. A member of the coalition supporting The Oregon Cannabis Equity Act outlined for Commissioners how the measure would create economic opportunity for previously disenfranchised populations by reducing regulatory costs, and establishing an equity license for individuals who have previous marijuana criminal convictions, or are from Black, LatinX or Indigenous groups.

HB 3112 would create two other license types: a delivery license and a social (on-premises) consumption license. The delivery license would allow deliveries outside the city or county of a delivery business’ location, and it would also allow delivery to a hotel, both activities that are currently prohibited.

Commissioners also ratified the following violation fines and suspensions based on stipulated settlements (detailed information on specific cases can be found here on the OLCC website):

NEBULA CANNABIS in Portland will pay a $1,155 fine OR serve a seven day recreational marijuana retailer license suspension for one violation.

Licensee is: Haramkhor, LLC; Krishna Kumar, Member.

ALTERNATIVE SOLUTIONS in Portland will pay a $5,280 fine OR serve a 32-day recreational marijuana retailer license suspension for two violations.

Licensees are: Alternative Solutions 1, Inc.; Donald VanWormer, President/Director/Stockholder; Brenda Lingle, Secretary/Director.

GRIZZILLA FARMS will surrender its marijuana producer license on the date the transfer of ownership of the business is completed or on July 30, 2021, whichever is earlier.

Licensees are: Grizzilla Farms, LLC; Mark Aguilar, Manager/Member.

WSLCB Virtual Listen and Learn Forum Session #2: Rules Regarding Marijuana Vapor Products

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WASHINGTON:  The Washington State Liquor and Cannabis Board (WSLCB) is hosting two Listen and Learn forums to consider establishing new and amending existing sections of rule concerning marijuana definitions and marijuana vapor products. This is the second of two planned sessions. The full text of the draft conceptual rules are provided here.

For this session, we are discussing only draft conceptual rule sections 314-55-550 to implement House Bill 2826 pertaining to marijuana vapor products, and the Marijuana Vapor Product Disclosure Form. The Disclosure Form is provided here.

Please join us virtually on Tuesday, September 29, 2020, from 2:00 p.m. until 4:00 p.m. via WebEx.

**Attendees wishing to provide feedback are encouraged to participate early in the meeting, as the meeting may end early dependent on level of participation.**

Background
On March 25, 2020, HB 2826 passed the legislature in response to concerns related to marijuana vapor product and vapor related lung illnesses. The bill contained an emergency clause, and in its intent section, found that “recent reports of lung illnesses associated with vapor products” demanded “serious attention by the state in the interest of protecting public health and preventing youth access.

HB 2826 provides that the Board may adopt rules prohibiting any type of marijuana vapor product device, or prohibit the use of any type of additive, solvent, ingredient, or compound in the production and processing of marijuana products, including marijuana vapor products. However, before adopting either of these types of rules, the Board must have determined, following a consultation with the Department of Health (DOH), or any other authority the Board deems appropriate, the device, additive, solvent, ingredient, or compound may pose a risk to public health or youth access.

HB 2826 authorizes the Board to require marijuana processors to submit, under oath, to the Department of Health, a complete list of all constituent substances and the amount and sources of all constituent substances in each marijuana vapor product. HB 2826 also provides that Board may adopt rules prohibiting the use of a characterizing flavor in marijuana vapor products.

Rules are needed to implement the provisions of HB 2826, and to establish definitions for terms including, but not limited to “characterizing flavor,” botanical terpenes,” and others.

The Pre-proposal Statement of Inquiry filed by the Liquor and Cannabis Board may be found here.

Meeting Details
An agenda is attached. Please come prepared to offer feedback and suggestions regarding this rule section.

If you wish to participate virtually, we’d like to offer the following reminders:

  • Virtual participation will be structured to allow one speaker at a time through a hand-raising feature on WebEx.
  • If you experience difficulty with audio or visual elements of virtual participation, please be patient.

Please remember that we are still in the developmental phase of rulemaking, and there are not yet any proposed or final rules amendments. To help you prepare for this listen/learn/contribute forum, please review the guidance document prepared for this and future forums.

Questions? Contact Casey Schaufler at casey.schaufler@lcb.wa.gov

To join the WebEx meeting online:
https://watech.webex.com/watech/j.php?MTID=m208eaad1ec16f31cfccdf6970963e1cb


To join the WebEx meeting via audio conference only:
Dial: (415) 655-0001
Access Code: 372 115 47

Four Things To Know Before Growing Marijuana For Business

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Every business is potentially profitable, if know how to operate it. The most important quality you need to have as a businessman is the love for the work you do. It’s not a myth or quote by some old man. All experienced businessmen believe that you are unlikely to fail if you love your business. The love for CBD is constantly increasing, and so its usage. Most of those people will buy it and some smart people will grow it.

It’s not as difficult as you might think. There are already many people doing the same thing, but the demand is so high that you are unlikely to fail in this industry. You can learn everything online and get to farm a thing you love. You won’t just be doing it for the money. It will have your heart in it, and you will always try to grow the best possible product. Here are a few things you should know before getting started to help you along the way.

Make Sure You Know Everything About Marijuana

While love is important, knowledge has no replacement. You need to learn everything you can about growing marijuana and the dos and don’ts before making any investments. If you think that you will learn on the job, you are not wrong. However, each lesson comes at a cost. That’s why it’s best to learn all these things before taking any step.

Pick the Best Strains

For the best product, you are going to need the best strains. You need two things for that—a reliable best seed bank and full knowledge of its types and qualities. Be sure to choose the strains that best fit your growing space. Choose a seed bank only from the top ones and build long term professional relationship with it to ensure your business grows smoothly.

Know Your Light Needs

Cannabis plants need a lot of light. You have to specially plan their power needs if you are growing in an indoor space. They need 400W to 600W of light for about 18 hours every day. You will need to buy the best quality lights and other electrical equipment like extractor and fans. Many residential power circuits can’t support more than 1500W, so you will have to take decisions accordingly.

Plan Finances in the Business Plan

Every business needs money to run. You will start to get a profit that you can reinvest later, but you will have to arrange a lot of finances at the beginning. It is suggested to create a full-fledged business plan and answer all questions of all categories after doing thorough research and brainstorming. This will help you efficiently plan your finances. Once you know exactly how much money you need, you can get to the struggles of arranging it. You can easily get a loan when you are sure to get the return according to your business plan.

Dialing For Dollars: Vanity Phone Numbers For Marijuana Businesses

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NEW YORK: A leading provider of vanity toll-free and local phone numbers, RingBoost, has announced the availability of special vanity phone numbers for marijuana businesses. The recent legalization of marijuana around the country has led to steep competition in this booming industry. Vanity phone numbers provide instant credibility and brand recognition in a way no other market tool can.

“The immediate goal for local brick-and-mortar businesses is to generate more phone calls and more foot traffic,” said Paul Faust, a senior vice president for business development at RingBoost. “This is as true for marijuana businesses as it is for any other business. More phone calls means more chances to earn new customers. Industry research has shown that phone leads convert ten times more often than web leads into paying customers, which means marijuana businesses who make use of a branded phone number such as 541-YES-WEED will have a tremendous competitive advantage in their markets.”

RingBoost is currently offering a variety of options for marijuana dispensaries, including local phone number options in four or seven digits in most local area codes (e.g. 541-383-WEED, 541-YES-WEED), and powerful toll-free options, including 1-800-CANNABIS, which is available for exclusive use in individual markets in states where marijuana is legal.

Cannabis Market Creating Jobs

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NEW YORK: The fast-growing cannabis market is expected to create more jobs in the United States. According to the 2017 Legal Marijuana Outlook, published by New Frontier Data, the cannabis industry is expected to create 283,422 jobs by 2020, with an implied growth rate of more than 17 percent compounded over the next four years.

The accelerating pace of cannabis legalization is considered as the main factor that drives the growth of legal cannabis market, which will further create more business ventures and boost the economy.

Giadha Aguirre De Carcer, Founder and CEO of New Frontier Data, said, “While we see a potential drop in total number of U.S. jobs created in 2017, as reported by Kiplinger, as well as an overall expected drop in GDP growth, the cannabis industry continues to be a positive contributing factor to growth at a time of potential decline, however, with a projected total market sales to exceed $24 billion by 2025, and the possibility of almost 300,000 jobs by 2020, it remains a positive economic force in the U.S.”

NWMJLaw Bootcamp Series: Employee Management And Conflict Resolution

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WASHINGTON: As the industry evolves and businesses get past the initial pressures of getting licensed and through the first few months of operations, we see two issues emerge that are worth an in-depth exploration.

This week in Seattle, Aaron Pelley and Anne van Leynseele of NWMJ Law will lead an open discussion with stories from the frontline about employees and conflicts. This event, held Tuesday, June 21st at the MJBA Seattle June monthly meetup.

The third in a business bootcamp  for Washington’s licensed cannabis business owners, the discussion will cover a wide range of situations that arise in these areas including: hiring and firing; how to set employee performance standards; NDA and non-compete contracts; AVN risks; and partnership disputes. Do not miss these two seasoned cannabis attorneys as they share real world situations and offer their sound advice on how to avoid troubles and tips on solving problems before they cause damage to your company.

 

Leafly Founders Depart, Raise Cash For New Marijuana Business Intelligence Startup

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WASHINGTON: After five years, the founders of marijuana strain and dispensary database Leafly are moving on to their next cannabis-related startup.

Cy Scott, Brian Wansolich, and Scott Vickers — who launched Leafly in 2010 — are the co-founders of Headset, a new Seattle-based startup that’s building a business intelligence platform for the fast-growing marijuana industry.

headset-product-details-mobile-r1Headset, which just raised about $450,000 of a $750,000 seed round from Poseidon Asset Management and a group of angel investors, offers what Scott describes as a market research and analysis tool similar to Nielsen, NPD or IRi, but for customers in the marijuana supply chain.

The idea is to give marijuana retailers, processors, and growers better insights and intelligence for their business, ultimately helping them make more money and offer better customer service.

“We’re staying in the cannabis industry but are tackling a different problem,” said Scott, who’s taking on the CEO role for the new company.

Headset’s platform provides a number of operational insights. For example, retailers can be immediately notified when stock is low of a particular product that’s been selling well, or find out if a specific strain isn’t flying off the shelves like it used to. Meanwhile, product manufacturers can access sell-through data, all-commodity volume information, and a competitive set analysis, among other insights.

Cannabis: Silicon Valley’s Hot New Sector

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CALIFORNIA: Wearing a straw hat and a big grin, farmer Casey O’Neill is busy greeting customers at a Saturday farmers’ market in Mendocino County, Northern California. “Another day in paradise,” he calls out, as one approaches. Fresh broccoli, courgettes and spring onions are on display on his table, all grown at his farm.

Next to the vegetables is a different kind of crop: mason jars full of marijuana buds, bearing handwritten labels such as “Lemon OG” and “Ogre Berry”. A bong sits at the front of the table, for sampling. “Wow, is that really grown outdoors?” says one shopper who takes a hit. Cannabis-infused honey, lip balm and chai tea are for sale at nearby stands.

Among the market-goers is a bright-eyed entrepreneur, Michael Steinmetz, a native of Venezuela based in San Francisco. He chats with farmers and shows around new staff members, who wear green T-shirts displaying the name of his company, Flow Kana.

The concept behind Flow Kana is simple: delivering farm-to-table cannabis that is organic and grown outdoors. Several of its partner farmers are at the market. When a Flow Kana customer orders some of O’Neill’s Ogre Berry strain, the buds will arrive at their door with a little label saying, “Grown by Amber & Casey”.

Oregon’s MBank Now Nixing All Pot Accounts After Colorado Plan Fizzled

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OREGON: Just two months after Oregon-based MBank pulled back on a promise to work with the marijuana industry in Colorado, the $170-million institution said it is dropping its cannabis clients entirely.

CEO Jef Baker said MBank doesn’t have the “resources necessary to manage the compliance” requirements for banks maintaining accounts with legal marijuana businesses.

But others familiar with the bank’s situation said the move from the marijuana space was forced by regulators who recently audited bank records over an extended period, eventually downgrading the institution’s rating and indicating marijuana deposits might be too risky to handle.

The bank has been under scrutiny because of a prior consent agreement with federal regulators that was the result of financial problems it had a few years ago. But now, regulatory examinations that normally were taking about two weeks suddenly were taking six, according to people familiar with that process.

MJBA’s Cannabis Job Fair Brings Together Top Employers and Job Seekers

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WASHINGTON: The legal cannabis industry in Washington is poised to scale in 2015, as more licensed retail stores come online and relatively low price points drive consumer demand.  According to the latest MJ Research report, Washington’s cannabis industry has surpassed $100M in sales in its first 33 weeks of legal sales, and that is in turn creating jobs.In response, many canna-businesses are getting into hiring mode.

The legalization of marijuana has created thousands of new jobs — 10,000 in Colorado last year.  This year that trend will only continue, as more stores open and more product becomes available.

This weekend in Seattle, the MJBA Job Fair will become ground zero for those interested in a career in legal cannabis — bringing together Washington State’s top cannabis industry employers and HR professionals and industry thought leaders with local job seekers.

MJBA Job Fair March 3, 2015 at Red Lion Hotel Bellevue WA

MJBA Job Fair March 3, 2015 at Red Lion Hotel Bellevue WA

The full day event includes a 2015 Jobs Outlook, and featured employer presentations from Producers, Retailers, Processors and service providers. Author and motivational speaker Tiffany McVeety will speak on “Being Your Own Boss” and CTI’s Greta Carter will talk about the importance of training and certification.

Job candidates will have the opportunity to take the stage and deliver their 60-second elevator pitch.Last fall’s MJBA Job Fair garnered tremendous publicity, and attracted approximately 500 people, according to organizers. More than 30+ employers turned out as sponsors seeking to fill more than 140 jobs. This year’s event, is being sponsored by RMMC Consulting, Eden Labs, Cannabis Training Institute, Viridian Sciences, 420MEDIA, and Weedhire.com, and looks to be even larger.

Here are some highlights of the media coverage of Job Fair Seattle last fall:

http://jobs.aol.com/articles/2014/09/29/washingtons-top-pot-companies-recruit-at-seattle-job-fair/

http://www.bellevuereporter.com/business/277490131.html

http://viridiansciences.com/first-pot-job-fair/

https://www.youtube.com/watch?v=LuBKheGPvcE