Tag: marijuana

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Sacramento’s first Black woman-owned cannabis storefront dispensary opens in midtown

By: Orko Manna

The CORE program is meant to remove barriers of entry into the cannabis industry for people in communities disproportionately impacted by the War on Drugs.

SACRAMENTO, Calif. —
Sacramento’s first Black woman-owned storefront cannabis dispensary just opened, due in large part to the city’s Cannabis Opportunity Reinvestment and Equity (CORE) program.

Crystal Nugs is the fourth storefront dispensary to open as a member of the CORE program. CEO Maisha Bahati said Crystal Nugs, which started as a delivery service, would have never been able to expand to a physical store in midtown without the city’s help.

I wouldn’t have this opportunity if the CORE program did not exist,” Bahati said. “I’ve received loans and grants close to $200,000. I received waivers on our business operating permit. I’ve received technical assistance and just support.”

The CORE program is meant to remove barriers of entry into the cannabis industry for people in communities disproportionately impacted by the War on Drugs. This includes Black and brown communities who were disparately arrested for cannabis-related offenses or lived in neighborhoods that were over-policed for drugs.

“It’s really difficult to get into the cannabis industry,” Bahati said. “The costs to get in are huge, and so you need assistance and that’s what the CORE program essentially does. It provides you with the assistance that will help you further your career in cannabis.”

The CORE program was created in 2018. In 2020, the Sacramento City Council approved 10 new storefront dispensary permits, increasing the number of storefront permits allowed in the city from 30 to 40. Crystal Nugs is the fourth business out of the 10 that received permits to open a storefront.

Davina Smith, the program manager for the City of Sacramento’s Office of Cannabis Management, said the CORE program helps with everything from education to advertising, to networking opportunities – and, of course, funding.

“It’s sort of an organic, living program,” Smith said. “It’s pretty expensive and time-consuming to break into and actually operate a regulated cannabis business, and so, the idea is to break down those barriers, try to reduce costs.”

Smith said the six other businesses are on track to open storefront dispensaries, but they must open by April 1, 2024.

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Understanding the Benefits of Cannabis

Cannabis has been making headlines in recent years as more and more states legalize its use for medicinal purposes. From reducing chronic pain to treating anxiety and depression, the benefits of cannabis are numerous and well-documented.

In this article, we’ll take a closer look at the benefits of cannabis and how it can be used to improve the quality of life for those suffering from a variety of medical conditions.

Pain Management

One of the most well-known benefits of cannabis is its ability to manage chronic pain. Whether caused by an injury, a medical condition, or simply aging, chronic pain can be debilitating and have a negative impact on a person’s daily life. Medical cannabis has been shown to be an effective pain reliever, helping to reduce pain and improve overall quality of life for those suffering from chronic pain.

Anxiety and Depression

In addition to its pain-relieving properties, medical cannabis has also been shown to be an effective treatment for anxiety and depression. This is because the compounds in medical cannabis, such as THC and CBD, interact with the body’s endocannabinoid system, which regulates mood and anxiety levels. By using medical cannabis, patients can experience a reduction in anxiety and depression, leading to improved mood and overall quality of life.

Seizure Control

For those suffering from conditions like epilepsy, medical cannabis can be a life-changing treatment. Cannabis has been shown to be an effective treatment for seizures, reducing the frequency and severity of seizures in many patients. This can be especially beneficial for children who suffer from seizures, as it can help improve their quality of life and reduce the impact of seizures on their daily activities.

Improved Sleep

Cannabis has also been shown to be an effective treatment for sleep disorders, such as insomnia. By reducing anxiety and pain, medical cannabis can help improve sleep quality and allow patients to get the rest they need to feel refreshed and rejuvenated.

In conclusion, the benefits of medical cannabis are numerous and well-documented. From reducing pain and anxiety to improving sleep and seizure control, medical cannabis can be a life-changing treatment for those suffering from a variety of medical conditions. If you’re considering using cannabis to improve your quality of life, be sure to speak with your doctor and do your research to find a reputable dispensary and cannabis products that are right for you.

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After years of discussions, Sacramento expected to approve 10 new marijuana shops

The Sacramento City Council is expected to vote Tuesday to allow 10 new storefront marijuana dispensaries in the city in an effort to address longstanding equity issues in that industry.

Of the city’s current 30 dispensaries, none are owned by Black men or women – a population disproportionately arrested during the War on Drugs, according to Malaki Amen, executive director of the California Urban Partnership.

To address that issue, the council has been discussing for years whether to allow more pot shops to open.

The council previously discussed holding a lottery to choose the 10 new shop owners, but the council directed staff to instead select them based on criteria.

The proposed criteria include evaluating whether applicants will be able to successfully submit a complete application for a dispensary permit, be able to successfully operate a dispensary, and utilize criteria “reasonably necessary to protect the public health, safety, and welfare,” the staff report said.

It’s unclear from the report whether applicants would have to prove they have capital or investors to start the business.

Amen raised issues about whether that criteria will allow the people most impacted by the War on Drugs to open dispensaries – the goal of allowing new shops to open in the first place.

“We’d like the opportunity to participate in a conversation about what those methods should be and the criteria should be,” Amen told the council’s Law and Legislation Committee last month.

Councilman Jay Schenirer said there are limitations on how the city language can be written, for legal reasons.

“I think we all have the same goals on this program around equity,” Schenirer said.

The people interested in opening shops had a say in the criteria language, cannabis manager Davina Smith said.

The Law and Legislation Committee, which contains four council members, unanimously voted to recommend the item to the full nine-member council, a sign it will likely pass.

To be considered, applicants must be participants or former participants in the city’s Cannabis Opportunity Reinvestment and Equity (CORE) program. That program is only open to residents who meet certain requirements, such as earning a low income, living in certain zip codes most impacted by the War on Drugs, or having a prior arrest for a cannabis-related charge. The program had about 159 graduates as of late August.

While permits for manufacturing, cultivation, delivery and distribution have been available, no permits for storefront dispensaries, the most desirable, have ever been available to new applicants. When recreational marijuana became legal California, the city allowed the shops already selling medical marijuana to have the only storefront permits.

Last year, The Sacramento Bee reported that one group of business partners had been able to gain ownership of a third of the city’s storefront dispensaries, despite a city code intended to prevent that. The code has since been strengthened.

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Sacramento may allow 10 new pot shops to address inequity in city’s marijuana dispensaries

Sacramento is poised to allow 10 new cannabis dispensaries in an effort to fix long-standing equity issues in the city’s retail pot market.

Of the city’s 30 dispensaries, none are owned by black men and women, demographics that were disproportionately arrested during the War on Drugs, Malaki Amen, executive director of the California Urban Partnership, has said.

To address that, the City Council in 2018 approved the creation of the Cannabis Opportunity Reinvestment and Equity (CORE) program. For those who meet certain income, zip code and other requirements, the program waives thousands of dollars in fees and prioritizes applicants for permits.

Although permits for cultivation, manufacturing, and delivery are available, there is no way for a CORE graduate to open a dispensary, which most want to do. About 117 people recently graduated from the program.

Councilman Larry Carr proposed the city get rid of the cap altogether. If his colleagues won’t agree to that, he suggested the city allow 30 new permits so half the shops in the city would be owned by CORE participants.

“There are 30 licenses granted. Equity will be when there are 30 CORE licenses granted,” Carr said.

He said he would accept a minimum of 10 new permits, however, and Councilman Allen Warren agreed.

Councilmen Jeff Harris and Eric Guerra raised concerns with allowing too many new shops, suggesting the city should start with three.

Mayor Darrell Steinberg, looking for a compromise, suggested the city allow 10 new permits spread out over two years.

Amen said he would prefer the city allow 10 new permits a year. That’s the amount the city currently has the staff and resources to process, said Assistant City Manager Leyne Milstein.

“I appreciate concerns across the board from the mayor and council and yet I still have concerns about tip-toeing toward equity when we’ve been down this road for five years now,” Amen said, referring to when the city first started discussing equity issues in the city’s cannabis market. “We’re at a point not only where the city has to build trust with communities damaged by the War on Drugs, but we really have to be intentional about opening up this market.”

MARIJUANA DISPENSARY SCANDAL, FBI INVESTIGATES

The discussion followed reports by The Sacramento Bee that revealed a man who was indicted in October with Rudy Giuliani’s associates in a campaign-finance scheme co-owns a Sacramento dispensary. His business partners own a total of nine of the city’s 30 shops under the “Kolas” brand. In 2011, the business partners only owned two, city applications show. City code bars owners from selling or transferring permits.

Although city staff had been checking since 2014 to make sure at least one name remains in the application from the previous year, dispensaries have been allowed to add new names of owners, then over time, remove the names of original owners. The council in November amended city code to prohibit people with an ownership interest in a storefront dispensary from obtaining an ownership interest in another dispensary.

In addition, the FBI has been investigating whether pot business owners in Sacramento have bribed local officials in exchange for favorable treatment.

Ashby said the city’s priority should be fixing the problems that allowed the business partners to accumulate so many permits.

“I don’t understand how one person came back with (so many) when we very clearly, every member of this dais said that’s not gonna happen … and it happened anyway,” Ashby said Tuesday, holding up a copy of the article. “All the ones that were monopolized could’ve gone to women and minority-owned businesses.”

After The Bee stories were published in October, the council passed a moratorium on dispensary transfers, which lasts until March 11. The mayor called for a new city audit and for a new employee to be hired in the city auditor’s office to focus solely on the cannabis department.

The council approved the creation of that position Tuesday.

“I’m confident that we are beginning to build the checks and balances so if there is a problem that raises eyebrows, we know about it and we can act,” Steinberg said.

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About 20% of licensed marijuana companies in California’s capital city face temporary closure

More than a fifth of the cannabis companies in Sacramento, California, are confronting the possibility of at least a temporary suspension of operations on the first day of February.

City regulators sent notices to dozens of registered marijuana businesses in December as a reminder they had not formally completed the process for acquiring a Sacramento business operations permit.

Though many have finished the process since then, officials in California’s state capital said last week that 58 businesses still have not completed the paperwork and might have to cease operations as of Feb. 1 until they can get it in order.

“We felt that it was our obligation to ensure that our applicants were moving forward, and if they weren’t, then they’re no longer going to be able to continue to operate,” Sacramento Assistant City Manager Leyne Milstein said.

Here’s what you need to know:

  • The city has a total of 265 pending marijuana business applications, including many that are already operational, Milstein said.
  • So far, the city has issued 107 licenses, including 85 operating permits for companies that have completed the entire process.
  • The 58 that face closure are cultivators, manufacturers, distributors and delivery services. None are retail storefronts, Milstein said.
  • Milstein noted letters went out to license applicants last July, reminding all that they needed to finish the permitting process. Since then, many have complied.

Any of the 58 that do not comply with the order to cease operations could face civil fines.

At least one of those companies has already filed a legal challenge, asking a judge for a stay on the Feb. 1 deadline, said attorney James Anthony, who represents Marpe, a state-licensed cultivator in Sacramento that received one of the December warning letters.

Anthony said Marpe is working on complying with the city regulations but that it could take another six months to a year.

“Now I guess we’re going to slug it out in front of a judge,” he said.

Another state-licensed Sacramento operator who received one of the letters, Teri Apple, who has run cannabis delivery service STC Alternative Healing since 2016, said she’s uncertain whether she can make the Feb. 1 deadline.

Apple said she’s been trying to come into city compliance since receiving a notice in July that her building wasn’t up to code, but the city building department has repeatedly identified new problems for her landlord to handle. That’s delayed her ability to finish the permitting process, Apple said.

Her landlord will have to complete new electrical work and interior remodeling – all of which is unlikely to be finished by the start of February, Apple said.

“If it wasn’t for the building department throwing different things at us, we would have been completed,” she said.

Apple is worried that even a temporary closure would force her out of business.

“To have me shut down, even for a week, it could be the death of me,” she said.

– John Schroyer

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24 Cities Sue State Over Regulations, Trying To Put An End To Pot Delivery

SACRAMENTO COUNTY (CBS13) — Two-dozen municipalities across California coming together to try to put an end to pot deliveries. Eleven local cities from Solano to Stanislaus counties have joined the lawsuit.

The state policy says marijuana companies can drive around and make home deliveries anywhere in the state, but leaders from 24 cities now want local control over who can deliver and where. Some marijuana companies say regulating deliveries will put the brakes on their businesses for good.

Maisha Bahati is co-owner of a new marijuana business: “Crystal Nugs.” The company only does delivery.

“We fought to get here. It took us two and a half years to get here,” Bahati said.

The Bureau of Cannabis Control developed delivery regulation over a two-year period.

“Everything is regulated to a ‘T.’ Everything is tested multiple times,” Bahati said.

She says the state also requires her to put her product on lockdown, literally. Every delivery has to be under lock and key in the back of her delivery car. She worries if the lawsuit passes, delivery businesses like hers won’t survive.

“That would certainly limit the radius that we could deliver. That could kill a new cannabis business overnight,” Bahati said.

She also worries about her clients who don’t drive and would somehow have to get to a dispensary.

“More so it hurts the consumers who rely on cannabis products. There are a lot of elderly that call us every week,” she said.

Two of the cities in the lawsuit are Ceres and Dixon. We spoke to city managers from both towns who call state-run delivery a “fatal flaw” for cannabis control.

“That’s not really the real local control we were looking for, and promised, with prop 64,” said Dixon City Manager Jim Lindley.

Ceres has two dispensaries, Dixon has one. Those businesses have local permits, but also relationships with leaders and law enforcement. These city managers say delivery drivers do not.

“With a delivery, we have no idea who is doing the delivery.  How is that person vetted? Who is the actual person doing the delivery? We’re not opposed to the delivery service at all. We just think the delivery service needs to be regulated like the rest of the industry,” said Toby Wells, Ceres City Manager.

The lawsuit was served to the Bureau of Cannabis Control on Tuesday. Leaders with the state-run organization said the public voted clearly for statewide delivery in 2016. Unless a Judge halts these services while the case is pending, drivers can continue to deliver.

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California is growing so much marijuana it could crash the market

California has too many marijuana farms, see the full list on Observer — growing too much product — according to a 2019 cannabis harvest projection.

Vessel Logistics, a San Francisco-based cannabis distribution company, found that more than 1,142 acres of cannabis farms hold state permits. They can produce up to 9 million pounds of crop every year, but the permitted wholesale market can realistically support 1.8 million to 2.2 million pounds.

“Thus, even when a 50 percent cut in production is accounted for, a significant oversupply is unavoidable in 2019,” the report concluded. 

California isn’t the only state to grapple with an overproduction of bud. A state audit found that Oregon growers are producing twice as much cannabis as the state market can support, and that there is “more than six year’s worth of supply sitting on shelves and farms,” according to Oregon Public Broadcasting.

“We’ll be in the same boat, but it will be more actual material,” said Daniel D’Ancona, president and founder of Vessel Logistics.

Until now, growers with a temporary license have relied on the black market to sell any product that couldn’t measure up to the state’s pesticide testing program or when there was a better price to be found, D’Ancona said. He said that all goes away as more growers are subject to the state’s Track-and-Trace program.

The program records “the inventory and movement of cannabis and cannabis products through the commercial cannabis supply chain — from cultivation to sale,” according to a state FAQ on the program.

Growers with a provisional or annual license are required to use Track-and-Trace. Temporary permit-holders are not. Instead, they are required to document all sales using paper invoices or shipping manifests.

“As soon as Track-and-Trace goes in place, it’ll be like trying to fit an elephant through a keyhole,” D’Ancona said. 

The Vessel Logistics report concluded that because the cannabis industry in California has over-relied on both the black market and out-of-state sales, producers and manufacturers over-estimated the actual wholesale demand in the state.

“The impact will be felt across the entire supply side as permitted companies compete for a wholesale market that is a fraction of its pre-Track-and-Trace size,” the report found.

Over-production is just one of many hurdles that the cannabis industry faces in the Golden State.

Thousands of growers with a temporary license could soon be thrown onto the black market or forced to shut down unless the Legislature passes a law to push back the deadline for an extension application.

California also is a messy patchwork of legal statuses for cannabis cultivation and sales.

“The retail sector has been primarily restrained by city and county governments restricting retail and delivery businesses within their jurisdictions,” the report found.

The report recommends that cannabis cultivators create “strong relationships with processors and distributors,” that farmers partner with teams that have experience with the state’s Track-and-Trace program, and that farmers seek the advice of distributors “to gauge product demand before planting the wrong crop or over-planting.”

Or, as D’Ancona put it, “They need to grow less. …. If they grow like they’re used to growing … the products are going to be selling for less than the cost of production.”

So what do others in the industry think?

Jacqueline McGowan, a cannabis lobbyist with the firm K Street Consulting, says that while she is a self-confessed “doom-and-gloomer” about the cannabis industry in California, she would need more information about the Vessel Logistics report methodology before agreeing with the findings.

“Businesses without a product that consumers demand and without relationships with competent distribution partners will in fact be devastated, but the industry as a whole will be able to offer cheaper products to consumers, which is the best way to compete with the unregulated market,” McGowan said.

She added that other factors that have to be looked at are how much of the over-production will qualify for the licensed market, how much of that would pass the state’s strict pesticide policy and how many growers with temporary licenses (which are free) will go on to get provisional or annual licenses (which are not).

“Will this cause another ‘extinction event?’ Absolutely. But will it cause the industry to collapse? No it will not,” she said.

By Sharon Okada

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Man takes Sacramento-Austin flight with 43 lbs of marijuana

Man takes Sacramento-Austin flight with 43 lbs of marijuana

AUSTIN (KXAN) — A man who took a flight from Sacramento to Austin Thursday was arrested on arrival to Austin-Bergstrom International Airport for possessing 43 pounds of marijuana.

According to an arrest warrant, Pflugerville resident Antonio Salis, 28, transported 43 pounds of marijuana in his luggage, which was detected by an Austin K-9 unit. The canine, Danz, reportedly located an odor emitting from two pieces of hard grey luggage — which had tags attached giving Salis’ name.

An officer asked Salis for permission to search the luggage and was denied but both pieces were seized as possible evidence. According to the officer, Salis claimed to have found the luggage in the street and decided to take them, checking both pieces in on his flight at the Sacramento airport. 

Salis faces a third degree felony possession of marijuana offense and his bail is set at $30,000.

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Using marijuana legally? New California law gives you some privacy.

Gov. Jerry Brown on Thursday signed a bill to give adult cannabis users some privacy.

Assembly Bill 2402 by Assemblyman Evan Low, D-Campbell, extends the same privacy protections to recreational cannabis users that medical cannabis users receive, with two exceptions. Information can be shared in conjunction with processing payments and to government officials, such as police, performing official duties.

The measure is largely aimed at preventing buyer information form being sold or traded for commercial use.

The bill also clarifies existing law “that all personal information of medical cannabis users is kept confidential by deeming identification cards issued to medical cannabis users to be ‘medical information’ under state law and therefore protected from unauthorized disclosure,” according to a statement from Low’s office.

The bill passed the Assembly 63-10 and the Senate 29-9. The law takes effect Jan. 1.

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Thousands toke and buy weed as Sacramento hosts first legal marijuana fest in California

A cloud of smoke hung over Cal Expo Friday afternoon as thousands gathered for the High Times Cannabis Cup, the first permitted event in California to allow recreational use of marijuana.

Organizers expected upwards of 15,000 people over the course of the two-day festival, which boasts musical performances from acclaimed artists, including Lauryn Hill, Lil Wayne, Gucci Mane, Rich The Kid, Cypress Hill, Rick Ross and Ludacris.

The event was at risk of becoming a music-only festival until the Sacramento City Council approved a license for on-site consumption and sales in a 6-2 vote Tuesday. Weeks earlier, a similar High Times event had its permit denied by the San Bernardino City Council just before it was scheduled to take place.

At Cal Expo, crowds maneuvered their way through the rows of booths Friday afternoon, sometimes stopping to take long drags from blunts or sample products. In between puffs from a neatly-rolled joint, Brian Johnson said he was grateful to the city for approving the license.

“I think it was really cool for the city of Sacramento to trust the cannabis community to do something like this,” Johnson said. “I think we’ll hold up our end and have a great event with no mishaps. We’re just out here having fun, trying to socialize and enjoy our products.”

Other attendees, like medical marijuana user William Bennett, said they simply came to learn more about the cannabis industry.

Bennett said he wanted tips for growing marijuana at home. Bennett, who said he suffers from chronic pain caused by a back injury, began using medical marijuana about five years ago as an alternative to prescription opiate painkillers, which he said caused him unbearable side effects. Bennett has since started to grow his own.

“I’m kind of on the fence with recreational, but in the long run, it’s better than people drinking and doing other things,” Bennett said. “You don’t hear about people having big brawls and fights at (events like this). Everyone’s just sitting back.”

Bennett’s wife, Dianne Kirk-Bennett, said she was impressed with how expansive and well-organized the event was.

“If this is your thing, this is the place to be,” Kirk-Bennett said.

The event has approximately 280 vendors, selling marijuana-themed apparel and art, vape pens, concentrates, topicals, edibles and a variety of other cannabis products.

High Times Chief Revenue Officer Matt Stang said it felt “incredible” to host the event, which he characterized as a watershed moment for the industry.

“It gives me a feeling that we’ve really progressed as a country. We’ve come to a point where we can have a peaceful gathering to consume and purchase cannabis with a state sanction,” Stang said. “The ability to do this legally — it’s been a long fight. High Times has been doing this for 44 years. We started as the voice of the opposition, and now we’ve grown into the majority. ”

Security was tight during for the strictly 21-and-up event. Unlike most music festivals, no alcohol sales were allowed.

Joe Devlin, Sacramento’s chief of cannabis policy, said the event would generate more than $200,000 in tax revenue. Devlin said High Times “has a distinguished track record of hosting safe, successful and compliant cannabis events,” noting that the company had developed a “comprehensive security plan” that was approved by law enforcement and had organized a ride share program for those attending the festival.

Stang said High Times had contracted with two separate security firms to ensure no attendees purchased more than the legally-allowed amount and to check for impaired drivers. Ticket buyers were given Uber and Lyft codes at the time of purchase in order to minimize the risk of attendees driving under the influence.

For those in the industry, the event served as a safe demonstration to convince skeptics and state government officials.

“We want to make sure that people understand what a great, compliant, adult-use event can be, because we want this to be the model for the rest of the country,” Stang said.