Cannabis News

A unionization effort filed for 17 employees at the Curaleaf medical dispensary in Hanover, Mass., went all the way to Washington, D.C., before a final decision on the results of a mail-in election was made earlier this month. The majority of ballots had been challenged, some of which remained sealed in the final vote count.

The United Food and Commercial Workers (UFCW) Local 328, which represents more than 11,000 workers in a range of industries throughout Rhode Island and southeastern Massachusetts, filed for the Curaleaf Hanover union election April 20, 2020—during the onset of the COVID-19 pandemic. Ballots went out to the Hanover team in May, and the original vote count was June 26. That vote came back 5-2 in favor of joining the Local 328, excluding 10 challenged ballots, which were determinative, meaning there were more challenged votes than the difference between yeses and noes.

“There was some fighting back and forth—because it was during COVID—about people that they were bringing in from other areas and having them work there,” UFCW Local 328 President Tim Melia said. “But they weren’t part of the Hanover group. The company was arguing that they should be part of the unit and should be able to vote on the contract. And we were arguing back the other way. So, there were some charges about who was eligible and who wasn’t when the vote came.” 

The challenged ballots took nearly 10 months to sort out. A federal investigation and hearing by the National Labor Relations Board (NLRB) examined the circumstances of the challenged ballots, which stemmed from which workers were employed at the Hanover location before government shutdowns and which workers were not. The Boston regional office of the NLRB determined that six of the 10 challenged ballots should not be counted. Curaleaf appealed that decision to the NLRB in Washington, D.C., where the labor board declined to hear the case, essentially upholding the ruling of the regional director in Boston.

The final vote was 8-3 in favor of the Curaleaf Hanover workers unionizing, which became official on April 9, 2021, roughly a year after the workers’ campaign was organized.

Local 328 organizers first connected with dispensary workers at Curaleaf Hanover in March 2020, a month before filing the unionization vote and before pandemic-related government shutdowns were enacted. At the time in Massachusetts, the shutdowns affected adult-use dispensaries while medical dispensaries like Curaleaf Hanover were deemed essential. 

“What ended up happening was that the company had sent over some workers from different locations because this is a purely medicinal facility [in Hanover] and the [adult-use] locations for Curaleaf had closed,” Local 328 Director of Organizing Sam Marvin said. “So, they had temporarily sent some workers from kind of far away to work at the medicinal location that was still open. And, so, essentially that made up some of the challenged votes.”

Curaleaf did not confirm the pre-shutdown whereabouts of its workers who represented the six challenged ballots that remained sealed, but the NLRB regional director in Boston determined those six should not be counted as part of the Hanover group. Had the six Hanover ballots that remained sealed all been no votes, then, theoretically, the union organization effort would have failed, 9-8.

A spokesperson from Curaleaf said the vote at the company’s Hanover dispensary was a “secret ballot election” but recognized that the final count was in fact in favor of union representation by the Local 328 for purposes of collective bargaining.

“While we’re disappointed with this outcome, because we believe team members are best served dealing directly with our management team, we respect the collective voice of our Hanover team members at the time and will seek to have a collaborative working relationship with the UFCW,” the spokesperson said. “We will continue to prioritize creating a positive, supportive and inclusive work environment for all team members and provide our patients and customers with the excellent service they expect and deserve from Curaleaf.”

Going Beyond Wages and Benefits

When Cannabis Business Times reached out to Curaleaf following the final vote and asked in what ways the company prioritizes taking care of its employees and meeting their needs, the spokesperson said, “We welcome everyone to join our employee resource groups focused on fostering inclusion.” The company identified specific groups that have been developed to meet this priority:

• Black, Indigenous and People of Color (Curaleaf in Color)
• WCC (Women’s Cannabis Collective) 
• PRIDE/QUSH (Queer-Centered Unity and Service Huddle)
• Working Parents (FamiLeaf)
• Community and Volunteerism (Curaleaf Cares) 

Curaleaf also hosts panel discussions and support events for all team members: 

• Heritage Lunch-in (food dishes that represent our heritage—celebrating diversity) 
• “Black in Cannabis” panel discussion (education and awareness of the war on drugs and historical community impact of Black people in cannabis) 
• “AAPI in Cannabis” panel discussion (education and awareness of Asian American Pacific Islander communities in cannabis)
• Holding Space and communicating from the C-suite (for times of grief and support—scheduled often and as needed when team members request and/or crisis happen. E.g., George Floyd murder and trial, mass shootings, Asian hate crimes, etc.)
• “Help a Family” (sponsoring Curaleaf team members who are in additional financial need during the holiday season)
• Virtual yoga and meditation classes 

“Our team members are the heart and soul of our company,” the spokesperson said. “Their dedication and commitment to serving our patients and customers is exemplified by their incredible efforts during this challenging time as our country deals with the COVID-19 pandemic.”

UFCW’s Push to Unionize Cannabis Workers

First organized by meat cutters and butchers in 1937, the Local 328 now represents workers in myriad industries, including retail food, institutional food, health care, banking, transportation, manufacturing, barbers, cosmetologists and now cannabis. But the push to unionize the cannabis space is just starting to unfold, both in the Local 328’s region and across the nation. Of the 11,000-plus workers represented by the Local 328, fewer than 100 are from the cannabis space. The union is working to increase that representation.

Earlier this month, dispensary workers at Greenleaf Compassionate Care Center in Portsmouth, R.I., unionized by a 21-1 vote to join the Local 328. The organized effort includes budtenders, keyholders, online team members and delivery associates.

Local 328 now represents workers from four cannabis businesses, including the Ocean State Cultivation Center (OSCC) in Warwick, R.I., where workers officially became the state’s first unionized cannabis organization with a negotiated contract in October 2020. OSCC provides cannabis products to compassion centers operating in Portsmouth, Providence and Warwick that serve more than 18,000 cannabis patients in Rhode Island’s medical program.

Perfect Union, a vertically integrated operator and parent company of OSCC, with dispensaries in California, New Mexico and Rhode Island, began paying all employees an additional $2.50 per hour on March 16, 2020—at the onset of COVID-19 and while negotiations were still taking place with UFCW. The bonus pay extended to more than 200 employees, including those working in cultivation, distribution, manufacturing and retail.

“Taking care of our employees is one of our highest priorities,” Perfect Union CEO David Spradlin said in a Local 328 release. “We are pleased to be partnering with the UFCW Local 328 and helping to set a standard for workers in Rhode Island’s cannabis industry. Our partnership ensures our employees will be treated fairly and equitably, allowing us to better serve the community around us.”

The two parties agreed to a labor peace agreement in late 2019, which committed them to open, transparent dialogue throughout the negotiation process, Marvin said. A labor peace agreement is an arrangement between a union and an employer under which one or both sides agree to waive certain rights under federal law with regard to union organization and related activity. Such an agreement is more likely to lead to unionization of a workplace, according to the U.S. Chamber of Commerce.

The finalized contract guarantees a living wage, comprehensive benefits, opportunities for career advancement and safe working conditions for OSCC employees, according to a Local 328 press release.

“The UFCW has been so important in turning these jobs into careers,” said Matthew Baryshyan, who works in cultivation at OSCC. “As this industry grows, so does our need to make sure our best interests are taken into consideration. We now have better wages, a pension plan, full benefits, vacation time, and the list goes on. The UFCW is making sure there is a future in cannabis, and it’s a bright one.”

Does Company Size Matter?

In addition, Local 328 representatives are currently negotiating a contract for the cannabis workers at a Cresco Labs cultivation and processing facility in Fall River, Mass. A multistate operator headquartered in Chicago, Cresco also operates one of its Sunnyside dispensaries in Fall River, after the company closed on its acquisition of Hope Heal Health Inc. in February 2020.

Earlier this year, more than 180 UFCW Local 881 members who work at Cresco Labs in Joliet, Ill., ratified a union contract that raised wages and improved benefits.

While Cresco Labs and Curaleaf are two of the biggest cannabis companies in the world, Marvin said workers throughout the industry essentially want the same thing—stability.

“Sometimes the smaller, medium-size companies will sell to a larger company,” he said. “So that’s why that’s one of the big issues for even the smaller, medium [companies] is to have some sense of protection and security in case that were to happen. They can still protect their unions, still protect their benefits and sit at the table with a new employer.”

As the biggest companies continue to grow in a sector with increasing revenues, workers of those companies want to ensure they are rewarded “in the industry where they’re creating these profits through their work,” Marvin said. This can take the shape of pay increases, ownership stakes or more inclusive workspaces.

Unionization efforts at Curaleaf Hanover and the Cresco Labs facility in Fall River come as the Massachusetts cannabis industry generated roughly $696 million in sales in 2020—a 56.4% increase from 2019, according to adult-use sales and production data from the state’s Cannabis Control Commission.

Since the adult-use system launched more than two years ago, Massachusetts cannabis sales have exceeded more than $1.5 billion overall. Cannabis sales in 2021 have already logged roughly $370 million through April, according to the state’s seed-to-sale tracking system.

Worker-Management Relations

Big or small, the Local 328 is pushing to extend its representation in the cannabis space. Sometimes organization efforts are met with cordial negotiations, and other times they are not, Marvin said.

As other state legislatures continue to debate and pass adult-use cannabis measures, lawmakers are including provisions in their bills that aim to deter anti-union practices on the part of cannabis business owners. For example, Virginia Gov. Ralph Northam signed legislation last week that gives the state’s incoming Cannabis Control Authority the power to strip licenses from any cannabis business that doesn’t remain neutral while its workers attempt to unionize.

Unionization can be good for both employers and employees, Marvin said. A key benefit made possible through unionization is that employers who may have a tough time entering into industry pension funds could gain access through labor unions that represent their workers, Marvin said.

“For example, we have a [United Steelworkers] industry pension fund that we can now negotiate these employers into because they’re union,” he said. “And we also have access to our industry health and welfare funds as well. So, maybe for some employers that cost can be greater if they’re doing it alone.”

While workers can gain health care and a secure retirement through unionization—which is not to say they can’t gain those benefits without a union—improving their relations with management can translate to the customer experience and reduce turnover, Marvin said.

“We don’t want to see an industry that has a high turnover where patients and customers are going in and seeing a new face every day,” he said. “We want to see that these are good jobs, that workers can take care of their families and their patients and customers at the same time. And I think ultimately that’s very beneficial for the consumer—that they can cultivate that relationship with employees and expect to see them the week after, and the week after that.”

Continuing the Push

Although Local 328 representatives have a trio of moving parts in the cannabis space—including their current negotiation with Cresco Labs and upcoming negotiation efforts with Curaleaf and Greenleaf—Marvin and Melia said the budding sector is ripe for additional unionization. Union negotiations are often centered on wages, hours, benefits and working conditions, while others choose to organize in order to gain dignity and respect on the job, Melia said.

Specifically for workers in medical dispensaries, who were deemed essential in many states as they worked on the front lines during the pandemic, having personal protective equipment (PPE), social-distancing protocols and proper cleaning measures in place were important safety standards, Marvin said. In general, working during a pandemic was a tipping point for many workers in a variety of sectors to organize, he said.

Going hand-in-hand with job security, workers want to make sure they are no longer at-will employees, Marvin said. In U.S. labor law, at-will employment is an employer’s ability to dismiss an employee for any reason, and without warning, as long as the reason is not illegal.

“I think that the organizing that workers are doing now is essentially framing how these jobs are going to be not only today and tomorrow, but for years down the road,” he said. “So, again, we want to make sure these are good jobs and we’re going to continue to communicate and partner with cannabis workers.”

Commercial real estate took a dive last year as companies began to work from home, but changing regulatory environments have opened doors to a new industry in need of property: cannabis. Growing rapidly at both the medical and adult use levels, cannabis businesses have been eager to move into vacant buildings, quickly buying up space as more states adjust their laws regarding cannabis.

Cannabis businesses cannot go at it blindly, however. Legal cannabis firms of all sizes – from the smallest startup to the biggest enterprise – will face regulatory challenges, traceability requirements, process control standards and, ultimately, the right technology to keep them moving forward in this promising industry.

Use data to keep track of plants, patients and regulations 

As a highly regulated industry, cannabis companies could be investigated at any time. Regulatory authorities may, at the very least, request proof that they are compliant with state restrictions. Cannabis enterprises will only be able to quickly and easily provide that proof if they have immediate access to accurate historical data. With that information, they can generate the necessary reports at a moment’s notice and maintain a reliable audit trail.

Historical data is also useful for both growers looking to evaluate why certain plants are more successful than others and for sellers looking to improve their customer experience. By tracking everything from mother plants to clones, growers can build a strong genetics profile and gain a powerful competitive edge. Historical data also aids sellers, who can use it to enhance their digital storefronts and keep track of customer information, shopping history and other details that could improve the e-commerce experience.

In addition to customer details, sellers must also keep track of patient information when selling in a medical-only environment. Prescriptions need to be carefully managed to ensure that patients only receive products that they have been approved to purchase and use.

Utilize process control to foster scalable and repeatable processes

Process control is another vital component that every cannabis grower, manufacturer, processor and distributor must possess. They need scalable and repeatable processes to prevent steps from being bypassed, ensuring that every finished product matches the same high-quality standards. If there are no stopgaps in place, steps could be missed if employees are rushing to meet a deadline or simply think that a particular test or check isn’t needed. Those kinds of mistakes can be hugely detrimental to any cannabis company and may waste product, diminish profits and turn off customers.

Similarly, visibility and control over inventory is a top priority for any business, but it reigns supreme in the cannabis space. Managers should always, at all times, know where the product is as it moves throughout the warehouse, or risk costs and waste. By directly tying scanners and barcodes to the right technology, organizations can ensure that all product is accounted for and easily located using real-time data.

Build a foundation for scalability 

Cannabis businesses don’t have the time to manually keep track of these aspects, and it wouldn’t even be possible as they grow and expand their operations. As they evolve, so too will the list of software requirements that are needed to operate smoothly, reliably and efficiently.

Cannabis processors have traditionally invested in seed-to-sale technology, relying on barcodes to track products throughout their lifecycle. While it is critical for cannabis enterprises to keep a strong level of control over lot tracking, this type of software is very limited. Cannabis firms would therefore be better served by an ERP solution with a single data source that provides centralized, real-time access to vital business information.

ERP technology can also help cannabis businesses better manage their production schedule, material requirements planning, accounting, purchasing, inventory management and document generation. The key, however, is to choose the right technology, avoiding ERP solutions that rely on customizations and bolt-ons, which will impede an organization’s ability to scale. Cannabis businesses should instead use technology that makes all of its features, enhancements and extensibility available to all customers, ensuring that every user has access to the same benefits.

The State of Ohio Board of Pharmacy has approved increasing the number of state dispensary licenses by 73, bringing the total allowed to 130 statewide.

According to the proposal, the Board considered three key factors when deciding to expand the number of dispensary licenses: the state’s population, the number of patients seeking to use medical cannabis and the geographic distribution of dispensary sites.

The Board initially issued 57 dispensary licenses; however, there are currently only 52 operating dispensaries. Compared to bordering states’ medical cannabis programs, like Pennsylvania and Michigan, Ohio’s current number of permits is low based on the state’s population, the proposal states.

For example, Pennsylvania has 109 medical cannabis dispensaries, and its population is about 12.8 million, equaling 0.85 dispensaries per capita. Ohio has 57 medical cannabis dispensaries, and its population is roughly 11.69 million, equaling 0.48 dispensaries per capita, according to the proposal.

And as of January, Ohio’s Medical Marijuana Control Program (OMMCP) reported over 135,000 registered patients, a significantly higher number than the initial estimates of acquiring 12-24,000 registered patients within the first two years of the program, the proposal states. (Medical cannabis sales began in Ohio in early 2019.)

The Board also found that there are currently “three dispensary districts without an operational dispensary, thus indicating a need to increase the number of dispensaries to ensure geographic distribution and patient access.”

Adding 73 new dispensary licenses will ensure geographic distribution, patient access and bring dispensaries per capita to 1.11, the proposal states.

Next Steps

Licenses will be awarded using an RFA II application process that is expected to be announced this spring or summer, depending on when the Board’s pending rule changes are made final.

“As previously done, RFA II will require applicants to specify the district(s) wherein they are applying, and provisional dispensary licenses will be awarded based on those districts. The districts will remain the same as in the previous RFA,” the proposal states.

From there, all applications will be evaluated to determine who is a qualified applicant. Eligible applications will then be entered into a lottery system where “individual lotteries will be held for each dispensary district with available licenses,” the proposal states.

When the application process is announced, the OMMCP will post more information regarding the application process on its website.

Late last week, the American Association for Laboratory Accreditation (A2LA) granted ISO/IEC 17065 accreditation to Americans for Safe Access (ASA). This is the first accreditation ever issued to a product certification body in the cannabis market.

ASA is a member-based organization founded in 2002 that seeks to ensure safe and legal access to cannabis for medical purposes and research. Back in 2016, A2LA and ASA partnered on a collaboration to develop the Patient Focused Certification (PFC) program.

What started as a supplement to ISO 17025 for cannabis testing labs to demonstrate a dedication to patient safety, has grown into a more comprehensive certification and consulting program that offers training, business services, company certifications. With the ISO 17065 accreditation, ASA can now deliver PFC certifications that confidently identify reliable and high-quality medical cannabis products, business and services.

Jonathan Fuhrman, program manager at A2LA, says this is a big milestone for ASA’s platform. “ISO/IEC 17065 and product certification can play a decisive role in the evolution of cannabis as medicine,” says Fuhrman. “With its high standards for competence and impartiality, adopting ISO/IEC 17065 represents a major win for healthcare providers and patients.”

Heather Despres, the director of ASA’s Patient Focused Certification program, says she is thrilled to be the first cannabis compliance organization to attain the accreditation. “The PFC program was developed by ASA in an effort to continue our commitment to protect patients, many of whom are medically fragile, and consumers who may be seeking medicine outside of conventional medicinal channels,” says Despres. “There is no other process that can demonstrate that continued commitment more than achieving ISO 17065 accreditation.”

Today marks the second Earth Day for the adult-use cannabis market in Illinois. The industry is in a position of influence to help us all understand what it takes to be mindful about balancing costs for consumers with conservation and sustainability priorities.

With 21 existing cultivation centers, the state has taken the approach to ensure this cash crop leads the way toward earth-friendly industrial agriculture. Regulation for the best growing environments, however, has some tradeoffs, and there are barriers to environmental entrepreneurship that intersect with equity. What is clear is that MSOs like Cresco Labs and groups like the Illinois Environmental Council are each doing their part to create an equitable and environmentally conscious industry.

We listen and share with Cary Shepherd, former policy director for the Illinois Environmental Council, and Jason Nelson, senior vice president of horticulture at Cresco Labs, to learn a little bit about how Illinois legislation got to be so green—and what it all means for a budding industry in these challenging times.

Mila Marshall: The Illinois Environmental Council represents more than 90 environmental organizations across the state. Cary, can you share a little bit about how the IEC came about to working on  the recommendations for the Cannabis Regulation and Tax Act?

Cary Shepherd: We worked with the University of Chicago Abrams Environmental Law Clinic to do a policy and law review on sustainable cannabis growth to help us draft language that was reflective of the priorities and concerns of the network. The focus of the bill was not on the environmental, which isn’t a bad thing—Illinois’ bill was a criminal justice reform bill—but we were able to work with IEC members to create legislation that protects the environment very similarly to how other agricultural industries are held accountable, for example.

MM: Some people may feel some apprehensive about the additional environmental legislation in H.B. 1438. It seems as though the environment and the economy are always pitted against each other. What were the actual concerns from the environmental community? Why were these elements necessary to include?

CS: Many from the community were concerned with water, energy and waste from cannabis, but most people understood that criminal justice reform and social equity was the primary issue. The environmental community wanted to ensure that this new industry wasn’t creating any unnecessary environmental harms.

MM: Typically, draft regulations from our state agencies are open to the public and we are allowed to weigh in. What was the process for the environmental regulations and what state agency was responsible for engaging on those parts of the bill?

CS: The Department of Agriculture had a tight timeline for the environmental regulations for H.B. 1438. Typically, there is an opportunity for the public to weigh in and comment; however, the public commenting was suspended.

MM: Cresco Labs operates 13 cultivation centers in seven different states with three of those centers are located in Illinois. The company also has a robust social equity agenda. What are your thoughts about industry sustainability and social equity?

Jason Nelson: I think the dialogue for  social equity was escalated and prioritized because of the direct human impact. The lack of federal legalization in my opinion hampered a more robust dialogue of social equity. But it was necessary to lead with addressing the inequities of incarceration, expungement and increasing minority business ownership. Yet as an industry we have failed to address the intersections between the environment and equity, now it is our opportunity to connect sustainability plans to a broader normalization agenda. Cresco Labs is always looking to be a leader when it comes to being good stewards in the cannabis industry. 

MM: What are the benefits to having environmental regulations for cannabis in Illinois?

CS: Most of these benefits are related to cost effectiveness and efficiency. Building a space out, for example, with the intention of sustainability and efficiency can be much cheaper than retrofitting, for example. So, one benefit is that businesses have the opportunity to begin with their best foot forward.

MM: Jason, what are your thoughts about the challenges of Illinois’ environmental regulations for Cresco Labs?

JN: From an operator’s perspective we will always seek a balance between increasing our yields and  bringing down the electrical draw. Cannabis is energy intensive so the more we are working to encourage power company rebates that help offset the elevated costs of energy saving practices. We want to advocate for future legislative change such as allowing for open field secured production, that in and of itself would reduce the carbon footprint associated with a gram of THC produced. If Illinois were to do something the most consequential thing would be just that, it lowers the cost of manufacturing for certain products and is a win for the environment. 

MM: Who needs to be at the table to help the cannabis industry become more sustainable?

JN: I would say we need more environmental activists to lend their voices to this space. We need environmental stakeholders to understand the absence of traditional business banking and access to capital alongside the unpredictable nature of the burgeoning industry. Our companies need to support leveraging win-win circumstances through environmental incentives, for example. 

MM: What about hemp, Jason? How does this connect to cannabis farmers on the hemp side?

JN: I do believe there are elements of cannabis production, through hemp farming applications, that have great potential to address environmental harm. Federal grants and incentives to plant hemp on low quality soil for environmental reclamation and for use in a secondary product on the back end could be targeted to benefit Black and brown farmers. 

MM: The SEED program at Cresco is an incubator program. Do participants learn about sustainability?

JN: Most of the program is tied to supporting participant visions. They are aware of both social equity and the environment. We surely make recommendations, and they are typically environmentally enlightened operators that are open to learning how to own and operate in ways that save money and protect the environment.

 

Virginia Gov. Ralph Northam detoured his signing of adult-use cannabis legislation, but an amendment package decided by a tiebreaker cleared a path for the stroke of his pen on Wednesday.

The state’s legislative chambers overcame differences to pass a compromise bill on Feb. 27, after each body passed different measures—Senate Bill 1406 and House Bill 2312—to legalize cannabis possession, personal cultivation and retail sales for adults 21 years and older.

The problem? Those legalization efforts, including possession laws, would not have gone into full effect until Jan. 1, 2024. Following the legislature’s passage, Jenn Michelle Pedini, Virginia’s executive director for the National Organization for the Reform of Marijuana Laws (NORML), said that timeline wasn’t good enough and she hoped to continue working to accelerate specific facets of legalization. Northam agreed and pushed to expedite certain components of the legislature’s bill. 

On April 7, the General Assembly approved the Democratic governor’s amendment package by way of Lt. Gov. Justin Fairfax casting the deciding vote in a split Senate. As a result, adults 21 years and older will be allowed to possess up to 1 ounce of cannabis and grow up to four plants per household starting July 1, 2021—speeding up the timeline 2 1/2 years.

“As of July 1, 2021—who’s counting, but 71 days from now—Virginia will no longer police adults for possessing small amounts of marijuana,” Northam said during his signing ceremony Wednesday. “What this really means is people will no longer be arrested or face penalties for simple possession that follow them and affect their lives. We know that marijuana laws in Virginia and throughout this country have been disproportionately enforced against communities of color and low-income Virginians.”

According to Virginia’s Joint Legislative Audit and Review Commission (JLARC)—the state’s non-partisan research arm—the average arrest rate of Black Virginians for marijuana possession was 3.5 times higher than the arrest rate for white individuals from 2010-2019, and their conviction rate was 3.9 times higher than white individuals.

The social equity implications of ending prohibition were mentioned by everyone who spoke during the governor’s signing ceremony, including Democratic Sens. Louise Lucas and Adam Ebbin, who were primary sponsors of S.B. 1406, Democratic Delegate Charniele Herring, who sponsored H.B. 2312, and Democratic House Speaker Eileen Filler-Corn.

Representing the Office of Diversity, Equity and Inclusion (ODEI) as the governor’s lead deputy chief diversity officer, Alaysia Black Hackett said, “This law establishes social equity as a pillar and major priority. Specifically, as mentioned before, it focuses on health equity, economic equity and equity in criminal justice. I want to especially highlight that it was critical for there to be equitable business licensing, especially for those who have been in the past criminalized and disenfranchised by marijuana laws.

“Secondly, the social equity reinvestment fund, an important structure in this legislation, provides resources that will elevate and uplift those persons, neighborhoods, communities and families most negatively impacted by the disparate enforcement of marijuana laws. This bill makes Virginia a national leader as we lean into many uncomfortable truths about the legalization of marijuana and the true meaning of being many Virginians but one commonwealth.”

Also included in Northam’s amendments, new language gives the state’s incoming Cannabis Control Authority the power to strip licenses from any cannabis business that doesn’t remain neutral while its workers attempt to unionize, a provision that drew partisanship on the opposite side of the aisle in the General Assembly.

But adult-use legalization in Virginia was partisan to begin with—neither the House bill nor the Senate bill attracted any Republicans sponsors or co-sponsors. That did not deter Democrats from their efforts. When Democrats flipped both chambers in 2019, they gained control of both the legislature and governor’s office for the first time in more than two decades.

“This is another example of Democrats, yes Democrats, listening to Virginians and taking action on the will of the people,” Northam said, “from expanding health care to over 500,000 people, to commonsense gun legislation, criminal justice and police reform, ending the death penalty in Virginia, fairer voting laws, moving forward clean energy, giving our teachers and state employees a much-deserved raise, and now legalizing the recreational use of marijuana in Virginia. On these and many other initiatives, Democrats have delivered.”

Statewide polling data released Feb. 2, 2021, by Christopher Newport University’s Watson Center for Civic Leadership showed that 68% of registered voters in Virginia, including majorities of Democrats and Republicans, support adult-use cannabis legalization. That mirrored the 68% of Americans who support legalization, according to a November 2020 Gallup poll.

According to JLARC, a fully legal cannabis industry in Virginia will create more than 11,000 jobs in sectors ranging from farming to retail. The Cannabis Control Authority, which the governor’s signed legislation aims to establish by July 2021, will oversee regulations and licensing. The five-member board of directors will institute the number of licensees, which cannot exceed 400 retailers, 25 wholesalers, 450 cultivators and 60 product manufacturers.

Many of the provisions in the roughly 300-page bill are subject to a reenactment, meaning a second review and vote by members of the General Assembly in 2022. But other provisions, such as simple possession and home grows, require no further action.

“Over the past two months, I have answered more times than I can count, ‘How did Virginia just legalize cannabis?’” said Pedini, who also serves as NORML’s development director. She gave credit to the Democratic leaders at the governor’s signing ceremony and to Virginians who supported the effort to become the first state in the South to legalize cannabis.

“Today and together, we celebrate an extraordinary victory for cannabis justice in the commonwealth,” she said. “I’ve also mentioned countless times how Virginia is the single most prepared state to ever undertake a legalization effort. The study and the workgroup both prioritized legalization that ensures equity, consumer safety and restorative justice. This is why the legislation succeeded, and on its first attempt.”

Virginia Gov. Ralph Northam detoured his signing of adult-use cannabis legislation, but an amendment package decided by a tiebreaker cleared a path for the stroke of his pen on Wednesday.

The state’s legislative chambers overcame differences to pass a compromise bill on Feb. 27, after each body passed different measures—Senate Bill 1406 and House Bill 2312—to legalize cannabis possession, personal cultivation and retail sales for adults 21 years and older.

The problem? Those legalization efforts, including possession laws, would not have gone into full effect until Jan. 1, 2024. Following the legislature’s passage, Jenn Michelle Pedini, Virginia’s executive director for the National Organization for the Reform of Marijuana Laws (NORML), said that timeline wasn’t good enough and she hoped to continue working to accelerate specific facets of legalization. Northam agreed and pushed to expedite certain components of the legislature’s bill. 

On April 7, the General Assembly approved the Democratic governor’s amendment package by way of Lt. Gov. Justin Fairfax casting the deciding vote in a split Senate. As a result, adults 21 years and older will be allowed to possess up to 1 ounce of cannabis and grow up to four plants per household starting July 1, 2021—speeding up the timeline 2 1/2 years.

“As of July 1, 2021—who’s counting, but 71 days from now—Virginia will no longer police adults for possessing small amounts of marijuana,” Northam said during his signing ceremony Wednesday. “What this really means is people will no longer be arrested or face penalties for simple possession that follow them and affect their lives. We know that marijuana laws in Virginia and throughout this country have been disproportionately enforced against communities of color and low-income Virginians.”

According to Virginia’s Joint Legislative Audit and Review Commission (JLARC)—the state’s non-partisan research arm—the average arrest rate of Black Virginians for marijuana possession was 3.5 times higher than the arrest rate for white individuals from 2010-2019, and their conviction rate was 3.9 times higher than white individuals.

The social equity implications of ending prohibition were mentioned by everyone who spoke during the governor’s signing ceremony, including Democratic Sens. Louise Lucas and Adam Ebbin, who were primary sponsors of S.B. 1406, Democratic Delegate Charniele Herring, who sponsored H.B. 2312, and Democratic House Speaker Eileen Filler-Corn.

Representing the Office of Diversity, Equity and Inclusion (ODEI) as the governor’s lead deputy chief diversity officer, Alaysia Black Hackett said, “This law establishes social equity as a pillar and major priority. Specifically, as mentioned before, it focuses on health equity, economic equity and equity in criminal justice. I want to especially highlight that it was critical for there to be equitable business licensing, especially for those who have been in the past criminalized and disenfranchised by marijuana laws.

“Secondly, the social equity reinvestment fund, an important structure in this legislation, provides resources that will elevate and uplift those persons, neighborhoods, communities and families most negatively impacted by the disparate enforcement of marijuana laws. This bill makes Virginia a national leader as we lean into many uncomfortable truths about the legalization of marijuana and the true meaning of being many Virginians but one commonwealth.”

Also included in Northam’s amendments, new language gives the state’s incoming Cannabis Control Authority the power to strip licenses from any cannabis business that doesn’t remain neutral while its workers attempt to unionize, a provision that drew partisanship on the opposite side of the aisle in the General Assembly.

But adult-use legalization in Virginia was partisan to begin with—neither the House bill nor the Senate bill attracted any Republicans sponsors or co-sponsors. That did not deter Democrats from their efforts. When Democrats flipped both chambers in 2019, they gained control of both the legislature and governor’s office for the first time in more than two decades.

“This is another example of Democrats, yes Democrats, listening to Virginians and taking action on the will of the people,” Northam said, “from expanding health care to over 500,000 people, to commonsense gun legislation, criminal justice and police reform, ending the death penalty in Virginia, fairer voting laws, moving forward clean energy, giving our teachers and state employees a much-deserved raise, and now legalizing the recreational use of marijuana in Virginia. On these and many other initiatives, Democrats have delivered.”

Statewide polling data released Feb. 2, 2021, by Christopher Newport University’s Watson Center for Civic Leadership showed that 68% of registered voters in Virginia, including majorities of Democrats and Republicans, support adult-use cannabis legalization. That mirrored the 68% of Americans who support legalization, according to a November 2020 Gallup poll.

According to JLARC, a fully legal cannabis industry in Virginia will create more than 11,000 jobs in sectors ranging from farming to retail. The Cannabis Control Authority, which the governor’s signed legislation aims to establish by July 2021, will oversee regulations and licensing. The five-member board of directors will institute the number of licensees, which cannot exceed 400 retailers, 25 wholesalers, 450 cultivators and 60 product manufacturers.

Many of the provisions in the roughly 300-page bill are subject to a reenactment, meaning a second review and vote by members of the General Assembly in 2022. But other provisions, such as simple possession and home grows, require no further action.

“Over the past two months, I have answered more times than I can count, ‘How did Virginia just legalize cannabis?’” said Pedini, who also serves as NORML’s development director. She gave credit to the Democratic leaders at the governor’s signing ceremony and to Virginians who supported the effort to become the first state in the South to legalize cannabis.

“Today and together, we celebrate an extraordinary victory for cannabis justice in the commonwealth,” she said. “I’ve also mentioned countless times how Virginia is the single most prepared state to ever undertake a legalization effort. The study and the workgroup both prioritized legalization that ensures equity, consumer safety and restorative justice. This is why the legislation succeeded, and on its first attempt.”

Charlotte’s Web Holdings, the company that just about launched the entire CBD industry, announced this week that they have just been approved for registration on Health Canada’s list of approved cultivars (LOAC) for 2021. Three of their proprietary hemp cultivars have made the cut, gaining the company access to the Canadian market.

Jared Stanley, co-founder and chief cultivation officer at Charlotte’s Web, says they plan to lead the market in Canadian hemp-derived CBD products. “The majority of approved cultivars on the LOAC to date have been for industrial hemp grown to produce food, fiber, and animal feed,” says Stanley. “Now our approved cultivars are paving the way for full-spectrum hemp CBD demand in Canada and most importantly, will provide access to Charlotte’s Web products in Canada.”

Largely due to the difference in regulatory approaches between Canada and the U.S., the CBD product market in Canada is somewhat small. Health Canada currently regulates CBD products the same as products containing more than 0.3% THC. In the U.S., a checkerboard of state laws, the 2018 Farm Bill and the subsequent state hemp programs led to massive growth for the CBD product marketplace.

Charlotte’s Web is one of the leading hemp-derived CBD companies operating in the United States. With the soon-to-be expansion into Canada, the company hopes to develop a global footprint, says Deanie Elsner, president and CEO of Charlotte’s Web. “Today, Charlotte’s Web is the leading hemp wellness company in the U.S. with the most recognized and trusted hemp CBD extract,” says Elsner. “We aspire to be the world’s leading botanicals wellness company, entering countries with an asset light model where federal laws permit hemp extracts for health and wellness. Israel and Canada are included in the first steps of our international expansion.”

Virginia Gov. Ralph Northam detoured his signing of adult-use cannabis legislation, but an amendment package decided by a tiebreaker cleared a path for the stroke of his pen on Wednesday.

The state’s legislative chambers overcame differences to pass a compromise bill on Feb. 27, after each body passed different measures—Senate Bill 1406 and House Bill 2312—to legalize cannabis possession, personal cultivation and retail sales for adults 21 years and older.

The problem? Those legalization efforts, including possession laws, would not have gone into full effect until Jan. 1, 2024. Following the legislature’s passage, Jenn Michelle Pedini, Virginia’s executive director for the National Organization for the Reform of Marijuana Laws (NORML), said that timeline wasn’t good enough and she hoped to continue working to accelerate specific facets of legalization. Northam agreed and pushed to expedite certain components of the legislature’s bill. 

On April 7, the General Assembly approved the Democratic governor’s amendment package by way of Lt. Gov. Justin Fairfax casting the deciding vote in a split Senate. As a result, adults 21 years and older will be allowed to possess up to 1 ounce of cannabis and grow up to four plants per household starting July 1, 2021—speeding up the timeline 2 1/2 years.

“As of July 1, 2021—who’s counting, but 71 days from now—Virginia will no longer police adults for possessing small amounts of marijuana,” Northam said during his signing ceremony Wednesday. “What this really means is people will no longer be arrested or face penalties for simple possession that follow them and affect their lives. We know that marijuana laws in Virginia and throughout this country have been disproportionately enforced against communities of color and low-income Virginians.”

According to Virginia’s Joint Legislative Audit and Review Commission (JLARC)—the state’s non-partisan research arm—the average arrest rate of Black Virginians for marijuana possession was 3.5 times higher than the arrest rate for white individuals from 2010-2019, and their conviction rate was 3.9 times higher than white individuals.

The social equity implications of ending prohibition were mentioned by everyone who spoke during the governor’s signing ceremony, including Democratic Sens. Louise Lucas and Adam Ebbin, who were primary sponsors of S.B. 1406, Democratic Delegate Charniele Herring, who sponsored H.B. 2312, and Democratic House Speaker Eileen Filler-Corn.

Representing the Office of Diversity, Equity and Inclusion (ODEI) as the governor’s lead deputy chief diversity officer, Alaysia Black Hackett said, “This law establishes social equity as a pillar and major priority. Specifically, as mentioned before, it focuses on health equity, economic equity and equity in criminal justice. I want to especially highlight that it was critical for there to be equitable business licensing, especially for those who have been in the past criminalized and disenfranchised by marijuana laws.

“Secondly, the social equity reinvestment fund, an important structure in this legislation, provides resources that will elevate and uplift those persons, neighborhoods, communities and families most negatively impacted by the disparate enforcement of marijuana laws. This bill makes Virginia a national leader as we lean into many uncomfortable truths about the legalization of marijuana and the true meaning of being many Virginians but one commonwealth.”

Also included in Northam’s amendments, new language gives the state’s incoming Cannabis Control Authority the power to strip licenses from any cannabis business that doesn’t remain neutral while its workers attempt to unionize, a provision that drew partisanship on the opposite side of the aisle in the General Assembly.

But adult-use legalization in Virginia was partisan to begin with—neither the House bill nor the Senate bill attracted any Republicans sponsors or co-sponsors. That did not deter Democrats from their efforts. When Democrats flipped both chambers in 2019, they gained control of both the legislature and governor’s office for the first time in more than two decades.

“This is another example of Democrats, yes Democrats, listening to Virginians and taking action on the will of the people,” Northam said, “from expanding health care to over 500,000 people, to commonsense gun legislation, criminal justice and police reform, ending the death penalty in Virginia, fairer voting laws, moving forward clean energy, giving our teachers and state employees a much-deserved raise, and now legalizing the recreational use of marijuana in Virginia. On these and many other initiatives, Democrats have delivered.”

Statewide polling data released Feb. 2, 2021, by Christopher Newport University’s Watson Center for Civic Leadership showed that 68% of registered voters in Virginia, including majorities of Democrats and Republicans, support adult-use cannabis legalization. That mirrored the 68% of Americans who support legalization, according to a November 2020 Gallup poll.

According to JLARC, a fully legal cannabis industry in Virginia will create more than 11,000 jobs in sectors ranging from farming to retail. The Cannabis Control Authority, which the governor’s signed legislation aims to establish by July 2021, will oversee regulations and licensing. The five-member board of directors will institute the number of licensees, which cannot exceed 400 retailers, 25 wholesalers, 450 cultivators and 60 product manufacturers.

Many of the provisions in the roughly 300-page bill are subject to a reenactment, meaning a second review and vote by members of the General Assembly in 2022. But other provisions, such as simple possession and home grows, require no further action.

“Over the past two months, I have answered more times than I can count, ‘How did Virginia just legalize cannabis?’” said Pedini, who also serves as NORML’s development director. She gave credit to the Democratic leaders at the governor’s signing ceremony and to Virginians who supported the effort to become the first state in the South to legalize cannabis.

“Today and together, we celebrate an extraordinary victory for cannabis justice in the commonwealth,” she said. “I’ve also mentioned countless times how Virginia is the single most prepared state to ever undertake a legalization effort. The study and the workgroup both prioritized legalization that ensures equity, consumer safety and restorative justice. This is why the legislation succeeded, and on its first attempt.”

Canopy Growth Corporation, the Canadian cannabis powerhouse moving its way throughout international markets, has signaled another move into the United States to push their new CBD beverage line. The company inked a deal with Southern Glazer’s Wine & Spirits, a large U.S. alcohol distributor.

This follows the launch of their first CBD-infused beverage line sold in the United States, Quatreau. In the initial phase of the agreement, Southern Glazer’s will distribute the beverage line in seven states, with plans to expand that footprint considerably in the coming months.

Being a national distributor with a strong presence throughout the country, Southern Glazer’s will be moving Canopy’s beverage line in conventional retail stores. The press release seems to credit Canopy’s partnership with Constellation Brands as the catalyst for the new distribution deal. “The agreement also showcases the benefits of the company’s strategic relationship with Constellation Brands, the global beverage leader,” reads the release.

Back in 2018, Constellation Brands made a $4 billion bet on Canopy, but immediate profitability did not come to fruition. This new deal with Southern Glazer’s, as well as the launch of the Quatreau beverage line, seems to prove Constellation’s bet is beginning to pay off, or at least showing signs of a long term play for market share.