The Mississippi Supreme Court is set to hear oral arguments in a lawsuit filed by Madison Mayor Mary Hawkins Butler that challenges the initiative process that legalized medical cannabis in the state, according to an AP News report.
The court issued an order Jan. 28 that schedules the hearing for April 14, the news outlet reported.
Butler filed the complaint in late October, just one week before Election Day, to challenge the petition process that qualified Initiative 65, the state’s medical cannabis legalization measure, for the ballot.
The measure, which voters ultimately approved, requires the Mississippi State Department of Health to implement a medical cannabis program by the middle of this year, AP News reported, but Butler’s lawsuit seeks to block the program, arguing that the proposal should not have been on Mississippi’s ballot in the first place because the initiative process is outdated.
According to the state constitution, petitioners must collect and equal number of signatures from five congressional districts, according to AP News, but Mississippi only has four congressional districts following the 2000 Census. In her lawsuit, Butler argues that with four districts, more than one-fifth of the signatures must come from each, the news outlet reported.
Wine, Window Treatments and Cannabis: Q&A with CULTA COO Allison Siegel
Siegel, the newly appointed chief operating officer for Maryland-based, vertically integrated cannabis operator CULTA, shares how her past experience in other industries guides her perspective of the cannabis market.
Many might expect that the wine industry shares similarities with the cannabis market, from the strict regulations to brand development strategies, but few might think to compare cannabis with window treatments.
However, according to Allison Siegel, the former president of Next Day Blinds and a former information technology and marketing executive for Total Wine & More, both roles provided valuable experience and expertise that will serve her well in her new position as chief operating officer for CULTA, a Maryland-based, vertically integrated cannabis operator.
At Next Day Blinds, Siegel grew accustomed to owning the customer experience from manufacturing to sale to installation, which is not unlike overseeing the cultivation, manufacturing and sale of medical cannabis products. And, she adds, the cannabis industry is growing rapidly like the wine industry once was, which makes Siegel excited to lend her talents to another quickly evolving market.
Here, Siegel shares more about her professional background, how her experience guides her perspective of the cannabis market and her overall goals for CULTA as the company continues to grow in Maryland.
Melissa Schiller: Can you describe your background and previous experience with Next Day Blinds? What did your previous role entail?
Photo courtesy of CULTA
CULTA Chief Operating Officer Allison Siegel
Allison Siegel: Most recently, I was president of Next Day Blinds, a Maryland-based, vertically integrated, direct-to-consumer business with 400-plus employees. I ran the day-to-day business until I led the company through a strategic sale to a national competitor. Prior to president, I was chief revenue officer, responsible for sales and marketing. While at Next Day Blinds, my team significantly improved top- and bottom-line financial results and we had a fun time doing it! We implemented a full technology replacement, upgrading our systems while enabling a thorough omni-channel experience for our customer. We also increased our gross margin through our manufacturing plant while increasing customer satisfaction. We did all of this while improving employee engagement scores, too.
Prior to Next Day Blinds, I worked for Total Wine & More for 10 years. I built and ran the IT Applications & Business Process teams for Total Wine for many years, and then spent my final three years there building a [customer relationship management] (CRM ) system, a loyalty program and a consumer insights group within the marketing team.
I also worked for a number of years at Anderson Consulting (now Accenture), mainly focusing on strategy and technology implementation of product-based companies.
I studied industrial and operations engineering at University of Michigan in Ann Arbor. Go Blue!
MS: How will your background and previous experience benefit you in your new role as CULTA’s COO?
AS: My experience at Next Day Blinds running the day-to-day operations will help me both understand and implement the process, people and technology needs to effectively run the operations at CULTA. Even though the product is very different, Next Day Blinds was a vertically integrated company, owning the customer experience from sale to manufacturing to installation. That experience will help me here at CULTA as we are a seed-to-sale vertically integrated operator.
The focus of customer experience at Next Day Blinds is also something that mirrors the CULTA business. We at CULTA believe the customer experience always needs to come first, focusing on a quality product and always being transparent with our customer. In addition, my years of experience in retail will help me support our growing dispensary business.
Wine has a lot of similarities to cannabis, especially around the intense regulation, taxing and brand development areas. In addition, the extreme growth I was part of at Total Wine & More closely mirrors CULTA’s growth. Managing and keeping up in a growth culture isn’t for the faint of heart. I have already experienced it and loved it at Total Wine & More. I am excited that I get to be part this similar explosive trajectory at CULTA.
MS: What attracted you to the cannabis space, and to CULTA specifically?
AS: My path into this space was not a traditional one. While exploring what I wanted to take on after the sale of Next Day Blinds, I met one of the members of our board of directors. We met (in his backyard due to COVID restrictions) and spoke a lot about the challenges that go along with the excitement of operating growing businesses, as well as the lack of business (non-government) leaders in the Baltimore-Washington, D.C. area. At some point in the conversation, he asked me if I would be interested in consulting for a cannabis company in the area. After speaking with Mackie Barch, CEO of CULTA, as well as one of the other directors on our board, they quickly won me over with CULTA’s story, growth and vision. I agreed to consult with them for a few months.
Once I was consulting, I got a tour of the CULTA Cambridge campus and realized, this is a real business. What made me decide to come on board full time was three-fold:
1. I have never seen a company where the employees are so proud, happy and fulfilled. If you walk into any space occupied by CULTA employees, you can feel them living and breathing the CULTA culture. They have a sense that they not only are part of the culture, but that they were part of defining and building it. And they take the role of preserving that culture very seriously.
2. I am inspired by people who are the best at what they do. People who you always feel are at the top of their game and, even then, they continue to evolve, learn and grow. This is one of the things that drew me to CULTA. We have the best people, those that are true experts in their field, and they are open to new ideas and always ready to learn.
3. I can help. My expertise, background and passion are areas where there was an obvious hole that was created as the company went from start-up to growth mode.
MS: What is exciting to you about Maryland’s medical cannabis market in particular, and CULTA’s operations in the state?
AS: There is so much exciting about the U.S. cannabis industry, and Maryland is just a microcosm of that excitement. It’s an incredible opportunity for me to drive growth at CULTA, while also help to normalize cannabis, both medicinally and politically.
I am a Maryland girl at heart. I grew up in Baltimore and currently live in Rockville, Md. It is exciting for me to be part of the change in Maryland around [the] acceptance of cannabis as a mainstream medical treatment. The community here has made huge strides from where we were just a few years ago.
CULTA has had a positive impact on Cambridge, Md., where we are located. Our operation has brought new jobs to Cambridge and we are so happy to be able to make a difference in this community.
Our dispensary business is continuing to evolve, as well. While we already have a loyal following, we are continuing to invest in the dispensary business and the team. We will continue to ensure we are able to service our patients with the best products, most knowledgeable budtenders, and a clean and enjoyable dispensary experience.
MS: CULTA seems to be in the middle of a growth spurt, with a new headquarters and additional new hires, such as Vice President of Retail Sales Jonathan Lassiter. How do you plan to help support this growth in your new role, and where do you see the company headed over the course of this year?
AS: A growth spurt would be putting it lightly. This company is still in its infancy, yet it is growing leaps and bounds month over month. This company went from start-up to growth mode over an 18-month period. The board of directors and the current management team have recognized that in order to continue [the] amazing growth, additional talent is needed to complement the current players.
In my role, I am going to help drive the growth using more mature methods than are used during a company’s start-up phase. Over the course of this year, we will embark on a number of projects that will take this company to the next level. Through CULTA’s growth in 2020, the current team proved that CULTA was able to keep the products’ quality high while increasing supply. We now need to continue to dial in our production while implementing our plan for continued growth.
When you are in a growing, immature market, everything looks like blue waters. We need to ensure we have a strong plan for our growth, focus on the blue waters that we can own at CULTA and be able to pivot when we try something and fail. I am here to help support and drive those efforts and ensure our team members all feel engaged and fulfilled.
MS: What are some of your other shorter- and longer-term goals in your new role with CULTA?
AS: Short term, I need to spend a lot of time learning about the cannabis space—both what we are doing at CULTA and what the rest of the country is doing, especially in the more mature markets. I am also very cognizant that I need to be a steward of our culture. We need to keep the quality of our culture and our product at the forefront of all of our decisions, even as we grow. While the bottom line of a business is important, we can’t let short-term financial goals erode the long term, which would happen if we don’t ensure our culture and quality stay No. 1. I also have a short-term goal to start to understand the political and social landscape as it pertains to cannabis. This goes hand in hand with this industry and I need to educate myself in these areas.
Longer term, my goal is to make this the best, most admired cannabis company in Maryland. At Next Day Blinds, I helped transform it into a top-tier brand in the Mid-Atlantic. I’m excited to contribute to CULTA’s similar growth. Luckily, all of the foundation is already in place here—I just have to build on top of it.
Editor’s Note: This interview has been edited for style, length and clarity.
New Mexico's Ultra Health Wins Favorable Ruling, Judge Invalidates New Cannabis Regulations
A judge has invalidated the Department of Health's rules on license revocation, hemp and testing due to lack of evidence.
SANTA FE, N.M., Feb. 01, 2021 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Ultra Health, a New Mexico-based cannabis company, won a favorable ruling on regulations promulgated by the New Mexico Department of Health (NMDOH) in June 2020. The regulations – including the strictest testing requirements in the United States, arbitrary restrictions on hemp activities, and suspension or revocation of a license without notice – were all invalidated by Santa Fe District Court Judge Bryan Biedscheid.
Judge Biedscheid invalidated the rules after NMDOH failed to consult the Medical Cannabis Advisory Board regarding the new regulations and failed to provide substantial evidence to support the changes.
Ultra Health and several other medical cannabis industry operators filed a petition under Rule 1-075 NMRA, which authorizes appeals from administrative decisions. Rule 1-075(R) NMRA requires that the Court analyze whether the decision of the agency is supported by substantial evidence, or evidence that is relevant and that a reasonable person may accept as adequate to support a conclusion.
“Given the applicability of Rule 1-075(R)(2) NMRA, and the State Rules Act’s requirement that an agency ensure technical information is contained within the rulemaking record, the Court finds that Department’s decision to adopt certain provisions of the repeal and replacement of 7.34.4 NMAC is not supported by substantial evidence,” Biedscheid stated in the order.
Biedscheid also held that the NMDOH had not consulted with the Medical Cannabis Advisory Board as required by the Lynn and Erin Compassionate Use Act, NMSA 1978, Section 27-2B-7(A) (2019). “There is insufficient information in the record from which to conclude that the Board and Department consulted about the full extent of the repeal and replace rulemaking,” the court’s order stated.
Specific regulations that were repealed include:
Suspension or revocation of a license without notice
Prohibition of the growing of hemp plants on property licensed for medical cannabis cultivation
Prohibition of hemp, hemp extract and hemp-derived products other than hemp paper and hemp seed oil to be combined with usable cannabis intended for sale
Testing requirements that set extremely strict action levels for microbes, mycotoxins, heavy metals and pesticides
Requiring that cannabis producers, manufacturers and testing laboratories obtain department approval before making “any physical modification or addition” to their facilities
Requiring all cannabis producers and manufacturers to have floors, walls and ceilings that are washable, wipeable and non-absorbent
Mandating a hazard analysis critical control point plan (HACCP) for each product a manufacturer produces
Requiring onerous, duplicate product labeling
“Judge Biedscheid’s ruling clearly states the department may not attempt to promulgate any rules it wishes without fully consulting stakeholders and providing substantial evidence for such changes,” said Duke Rodriguez, CEO and President of Ultra Health. “Organizationally, we support testing and reasonable regulation, including enhanced testing for pesticides and heavy metals. However, regulations must absolutely be promulgated rationally and consistently as compared to industry standards in other cannabis markets. Most importantly, regulations must be consciously promulgated to avoid driving up the price of medicine and reducing the availability of medicine for New Mexican patients who desperately need access to affordable medical cannabis care."
Atomazul | Adobe Stock
Medical Cannabis Dispensary Permits Announced in West Virginia
Medical cannabis patient registration opens for West Virginia residents this week, as dispensary permits get approved.
In 2017, West Virginia became the 29th state to legalize medical cannabis for residents with severe medical conditions. Now, nearly four years later, the West Virginia Office of Medical Cannabis (OMC) announced the approved applicants to receive a medical cannabis dispensary permit.
The notice states that “recipients of these permits can operate retail locations within West Virginia for certified patients.”
Patient registration applications are set to open Wednesday, Feb. 3, at noon. Once applications open, eligible West Virginia residents can visit www.medcanwv.org to register. There will be no paper applications available.
Patient cards are only valid to use in West Virginia. They do not offer any legal protections for medical cannabis products obtained outside of the state, the notice states.
To access a full list of dispensary permit holders and registered physicians in West Virginia, click here.
cendeced | Adobe Stock
16 States That Are Considering Cannabis Legalization Bills in 2021
More than a dozen state legislatures are weighing either medical or adult-use cannabis policy reform this year as momentum builds following the 2020 election and the U.S. House’s approval of the MORE Act.
“The Election Day legalization victories certainly added to the momentum for other states to pursue marijuana reform, particularly in the Northeast, and lawmakers in several states have already taken action by introducing legislation to legalize marijuana,” Violet Cavendish, communications manager for The Marijuana Policy Project (MPP), tells Cannabis Business Times and Cannabis Dispensary.
MPP is focusing its efforts on advancing legislation to legalize and regulate adult-use cannabis in Connecticut, Delaware, Maryland, Rhode Island and Virginia this year, Cavendish says, adding that New York and New Mexico are also key states to watch as state lawmakers consider legalization proposals.
On the medical cannabis front, MPP is actively working with patient advocates this year to advance legislation in Kentucky and South Carolina.
“Legalization has proven to be a winning issue, and we expect to see continued progress for state-level marijuana reforms this year,” Cavendish says.
NORML is also lending its support to many of these policy reform efforts, and Deputy Director Paul Armentano says the organization will be actively involved in adult-use legalization efforts in New Mexico, Virginia, New York and Connecticut this year, while also focusing on the implementation of New Jersey’s adult-use cannabis program.
NORML will also lobby in favor of home cultivation in Washington State, as well as expanded medical cannabis access and a reduction of criminal possession penalties in Texas. The organization is also looking to advance medical cannabis legalization in South Carolina.
“In several other states, we are also supporting efforts to expand existing medical access, facilitate the expungement of past records, and impose workplace and other legal protections against discrimination for those who use cannabis responsibly,” Armentano says.
NORML State Policies Coordinator Carly Wolf expects legalization legislation to advance more quickly in New Mexico and Virginia, which have short legislative sessions, and is also paying particularly close attention to the Northeast this year.
“With the implementation of New Jersey's voter-approved ballot measure expected in the coming months, I am closely watching other states in the Northeast like New York, being just across the river, as well as Connecticut, and am optimistic about the chances of legalization succeeding in both of these states in 2021, especially with even larger Democratic majorities now than in previous years,” she says.
Here is a closer look at the states that are weighing cannabis policy reform this year.
Adult-Use Cannabis Legalization Efforts
Connecticut
Gov. Ned Lamont announced during his State of the State address in early January that adult-use cannabis legalization is a priority for him this year, and late last month, he introduced a draft bill to make this goal a reality. Lamont’s administration is currently seeking feedback on the draft legislation, and it remains to be seen whether Lamont will incorporate the proposal into his state budget, which is due to lawmakers in February.
Florida
Rep. Carlos Guillermo Smith and Sen. Jeff Brandes have filed complementary bills this year to legalize adult-use cannabis in the Sunshine State. Smith’s H.B. 343 would legalize cannabis for adults 21 and older, while Brandes’ S.B. 710 would revise the state’s sales tax exemption for the sale of cannabis to apply only to purchases made by qualified patients or caregivers enrolled in the state’s medical cannabis program. The legislation would allow adults to purchase up to 2.5 ounces of cannabis or products containing up to 2 grams of THC, but smoking cannabis would remain illegal.
Maryland
Del. Jazz Lewis has introduced a comprehensive cannabis legalization bill, H.B. 32, which would legalize the personal possession and home cultivation of cannabis for adults, as well as automatically expunge past cannabis offenses, establish a social equity program and reinvest a portion of tax revenue to endowments to Maryland’s four historically black colleges and universities (HBCUs) and the communities most impacted by prohibition. The Maryland Cannabis Policy Coalition organized a virtual press conference Jan. 26 in support of Lewis’ bill, which is officially called The Cannabis Legalization and Regulation, Inclusion, Restoration, and Rehabilitation Act of 2021.
Minnesota
House Majority Leader Ryan Winkler has been spearheading adult-use cannabis legalization efforts in Minnesota, and is renewing his push for policy reform this year with plans to once again sponsor adult-use legislation. Ahead of last year’s legislative session, Minnesota lawmakers held a series of public discussions across the state to gather public input on legalization, and Winkler introduced an adult-use legalization bill last spring that incorporated feedback generated from those discussions.
New Mexico
Democrats in New Mexico’s legislature are planning a cannabis legalization proposal during this year’s 60-day legislative session, which kicked off Jan. 19. Rep. Javier Martinez is leading the legalization effort this year and sees a path forward for policy reform after voters did not reelect some more conservative lawmakers to the Democrat-controlled legislature in the 2020 election. Gov. Michelle Lujan Grisham has also thrown her support behind adult-use cannabis legalization in the past.
Rep. Jason Dockter has sponsored an adult-use legalization bill in the state legislature this year, despite his own opposition to legalizing cannabis. According to The Dickinson Press, Dockter believes legalization is inevitable as more states legalize and regulate cannabis, and he says lawmakers should draft a legalization proposal instead of leaving the issue in the hands of a ballot initiative campaign. Legalize ND backed a 2020 campaign to get adult-use legalization in front of voters last year, but ultimately refocused its efforts on the 2022 election after the COVID-19 pandemic largely derailed its signature gathering efforts. In the meantime, Dockter’s H.B. 1420 would allow adults 21 and older to use, possess and transport up to one ounce of cannabis or an equivalent amount of edible cannabis products, and the state Health Council would be charged with licensing and regulating cultivators and dispensaries.
Texas
State Sen. Roland Gutierrez pre-filed S.B. 140 in November to legalize adult-use cannabis in the state. The lawmaker estimated that legalization would create 30,000 new jobs, as well as generate more than $3 billion in revenue, according to an ABC13.com report.
Virginia
In mid-January, Gov. Ralph Northam proposed an adult-use legalization bill that has since been co-sponsored by Sens. Louise Lucas and Adam Ebbin. The legislation would allow adult-use sales to launch Jan. 1, 2023, and calls for the licensing of cultivators, processors, distributors/wholesalers, retailers and testing labs. The Senate Rehabilitation and Social Services Subcommittee voted Jan. 20 to advance the bill, sending it to the full Senate Rehabilitation and Social Services Committee for consideration. Virginia Del. Steve Heretick has reintroduced a separate legalization bill, which is also still pending in the state legislature.
Medical Cannabis Legalization Efforts
Alabama
Sen. Tim Melson plans to reintroduce a medical cannabis legalization bill this year after similar legislation passed the Alabama Senate during the 2020 legislative session before ultimately stalling in the House. Melson’s new bill would create the Alabama Medical Cannabis Commission to license and regulate the industry in the state, where only industrial hemp has been legalized.
Kansas
A group of lawmakers introduced a medical cannabis legalization proposal in mid-January with the backing of the Kansas Cannabis Industry Association. The bill’s supporters argue that a regulated medical cannabis market may help boost the state’s economy in the wake of the COVID-19 pandemic, and they are confident that the legislation has the support it needs in the legislature if it is called up for a vote this year.
Kentucky
Sen. Steve West introduced a medical cannabis legalization bill Jan. 8 in the form of S.B. 92, which would legalize the cultivation, manufacturing, distribution, sale and delivery of cannabis products and allow practitioners to recommend medical cannabis to their patients. West’s proposal joins Rep. Jason Nemes’ H.B. 136, a separate medical cannabis legalization bill that was reintroduced Jan. 6 after stalling during last year’s legislative session.
Nebraska
Sen. Anna Wishart has introduced L.B. 474 to legalize medical cannabis in the state. Wishart helped lead Nebraska’s 2020 medical cannabis ballot initiative, which was supported by Nebraskans for Medical Marijuana and ultimately rejected by the Nebraska Supreme Court for violating the state’s single subject rule.
Tennessee
Sen. Janice Bowling has backed legislation to legalize medical cannabis in Tennessee for years, and announced plans in November to introduce a new medical cannabis legalization bill during this year’s legislative session. Bowling told local news outlet WREG that she hopes the recent legalization of medical cannabis in nearby Mississippi will generate more support for the bill, which would authorize medical cannabis use for patients with qualifying conditions that include cancer, glaucoma and PTSD.
States Making a Run at Both Medical and Adult-Use Legalization
Indiana
Sen. Karen Tallian has introduced two pieces of legislation this year to legalize and regulate medical and adult-use cannabis, as well as hemp. S.B. 87 would establish the Cannabis Compliance Commission to regulate cannabis and hemp in the state, while S.B. 223 would decriminalize the possession of up to two ounces of cannabis.
South Carolina
Lawmakers in the Palmetto State pre-filed bills in both the House and the Senate in December to legalize medical and adult-use cannabis. Legislators in both chambers are considering two pieces of medical cannabis legislation, both called the “South Carolina Compassionate Care Act,” which mirror a proposal that was considered during 2019 legislative session, when the Senate ultimately pushed a vote on the measure to 2020. Although the legislation failed to resurface last year due to the COVID-19 pandemic, the conversation seems to be continuing this year, and lawmakers in the House and Senate have also pre-filed bills to decriminalize the possession of small amounts of cannabis, as well as legislation to legalize adult-use.
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