Editor’s note: This article was originally published Jan. 31 and has been updated to reflect the House’s passage of the SAFE Banking Act as an amendment to the America COMPETES Act.

In one of his final stints on Capitol Hill, Rep. Ed Perlmutter isn’t ready to call it quits on banking reform for the cannabis industry.

Office of the Clerk, U.S. House

The Colorado Democrat, who assumed office in 2007, announced in early January that he won’t seek reelection come November, attracting the attention of those throughout the cannabis industry, many of whom have backed his fight to provide clarity and safe harbor to financial institutions servicing cannabis clients.

Perlmutter, 68, is the chief author of the Secure and Fair Enforcement (SAFE) Banking Act, which passed the U.S. House five times between 2019 and 2021, including twice as a standalone bill, and as an amendment to the National Defense Authorization Act in September 2021, before it was later removed from the military spending package during negotiations between the House and Senate.

RELATED: U.S. House Adds SAFE Banking to Defense Spending Package

All five times SAFE Banking passed the House prior to 2022, it stalled before making headway in the Senate. But behind broad bipartisan support in his chamber, including a 321-101 roll call vote in April 2021, Perlmutter isn’t giving up on its complete passage.

In his most recent move, Perlmutter announced Jan. 28 his intention to attach SAFE Banking as an amendment to the America COMPETES (Creating Opportunities to Meaningfully Promote Excellence in Technology) Act of 2022. The legislation, House Bill 4521, is also known as the Bioeconomy Research and Development Act of 2021.

A 2,900-plus-page bill, the COMPETES Act focuses, in part, on increasing competitiveness with China and supporting the U.S. chip industry, including $52 billion to subsidize research for semiconductor manufacturing and research, Reuters recently reported.

On Feb. 3, House members officially approved SAFE Banking a sixth time via an en bloc amendment package to the America COMPETES Act, before the body passed the large-scale bill in its entirety by way of a 222-210 vote on Feb. 4.

“The SAFE Banking Act is the best opportunity to enact some type of federal cannabis reform this year and will serve as the first of many steps to help ensure cannabis businesses are treated the same as any other legal, legitimate business,” Perlmutter said in a release.

He added, “I will continue to pursue every possible avenue to get SAFE Banking over the finish line and signed into law.”

Perlmutter’s main obstacles in the upper chamber have been majority leadership. Former Senate Majority Leader Mitch McConnell, R-Ky., did not act on calendaring the 2019 standalone version of SAFE Banking for debate, while current Majority Leader Chuck Schumer, D-N.Y., has shown a lack of interest in incremental reform efforts before taking up a broader bill, the Cannabis Administration and Opportunity Act, which he sponsors with fellow Democratic Sens. Ron Wyden, Ore., and Cory Booker, N.J.

But as those who operate all-cash businesses in the cannabis space continue to be targets of armed robberies and other violent crimes, Perlmutter said he will continue his pursuit of SAFE Banking until his term expires on Jan. 3, 2023.

“Cannabis-related businesses—big and small—and their employees are in desperate need of access to the banking system and access to capital in order to operate in an efficient, safe manner and compete in the growing global cannabis marketplace,” he said. 

CHICAGO, Feb. 7, 2022 – PRESS RELEASE – Green Thumb Industries Inc., a leading national cannabis consumer packaged goods company and owner of Rise dispensaries, announced it will open two new retail locations in Virginia: Rise Lynchburg on Feb. 8; and Rise Christiansburg on Feb.10.

Profits from the first day of sales will be donated to local organizations for each store opening: Rise Lynchburg will donate to Shawn Moss Wellness and Growth Foundation (SWAG Foundation) and Rise Christiansburg will donate to Montgomery County Emergency Assistance Program (MCEAP).

“We are thrilled to expand our footprint to 75 stores across the nation, while increasing our retail presence in Virginia,” said Ben Kovler, Green Thumb founder and CEO. “Since entering the state last summer, we have had the opportunity to meet many patients and community members, and we are ready to introduce the Rise experience to more of our neighbors in these two cities.

“We are also proud to support the Shawn Moss Wellness and Growth Foundation, an organization that is making a huge impact in communities affected by gun violence, and the MCEAP, which supports many residents and their path to restored self-sufficiency by providing access to food and clothing.”

The SWAG Foundation provides resources like education, household items and community development to foster success in communities affected by gun violence.

“Nonprofits are the boots on the ground in the black and brown communities where resources are not as plentiful,” SWAG Foundation founder Brenda Moss said. “To partner with a company like Green Thumb that aligns with vision of The SWAG Foundation in making sure that black and brown communities have the same opportunities as others means a lot. Black and brown communities need to know that ‘There is nothing you can't do.’”

MCEAP assists Montgomery County residents in maintaining their households and restoring their self-sufficiency by serving the immediate, emergency and temporary needs of low-income, unemployed, elderly or handicapped individuals and families.

“We are grateful for Green Thumb’s generous donation, which will directly benefit our food bank building fund, helping us ensure all Montgomery County children and families always have a place to go for meals,” said Marjorie Vitale, MCEAP operational director and manager.

In addition to Rise Lynchburg and Rise Christiansburg, the company owns and operates Rise stores in Abingdon and Salem. Green Thumb maintains the opportunity to open one additional retail location in the state.

Rise Lynchburg and Rise Christiansburg will offer “Roll-Thru” services, allowing Virginia medical cannabis patients to make reservations in advance and pick up via drive-thru style window.

Rise Lynchburg is located at 1110 Campbell Ave. in Lynchburg. Rise Christiansburg is located at 1675 Roanoke St. in Christiansburg. Hours for both locations are 9 a.m.-6 p.m. Monday through Thursday; 9 a.m.-7 p.m. Friday; and 9 a.m.-4 p.m. Saturday.

Visit www.risecannabis.com for more information.

Following a months-long review of vape products sold by Pennsylvania’s licensed cannabis operators, the state’s Department of Health (DOH) has issued a sprawling mandatory recall.

The list includes hundreds of vape products from PurePenn, PennAlt Organics, Pennsylvania Medical Solutions, MLH Explorations, Insa, Ilera Healthcare, Holistic Farms, Hanging Gardens, GTI Pennsylvania, Goodblend Pennsylvania, Franklin Labs, Curaleaf PA, Cresco Yeltrah, CannTech PA, Agri-Kind, and AES Compassionate Care—some of the largest multistate operators in the region, needless to say.

“After finishing this review, the Department has determined that certain vaporized medical marijuana products containing some added ingredients have not been approved for inhalation by the United States Food and Drug Administration (FDA),” according to the Feb. 4 memo. “Although some of these added ingredients may be considered safe in other non-inhaled products, patient safety is the top priority of the Medical Marijuana Program. Therefore, the Department has issued a mandatory recall for all affected vaporized products.” 

The review in question was first announced to the public on Dec. 1. The DOH targeted vape products “state-wide” to gather information on whether “added ingredients” were present in those products—some of which were being sold on dispensary shelves. Back on Nov. 16, the DOH had sent a message to all licensed cannabis business owners, asking for them to submit all vape products containing added ingredients for review (even those that had already passed state testing).

No rationale was provided for the review, although communication from the DOH referenced additive regulations in other states—presumably referring to regulations that may allow certain additives outside of Pennsylvania.

In a follow-up message to business owners, sent from Sunny D. Podolak, Assistant Director and Chief Compliance Officer with the DOH’s Office of Medical Marijuana, on Dec. 13, the phrase “additives” was qualified as “artificial terpenes or flavorings.”

Little information followed, confusing business owners and patients alike. 

The Feb. 4 recall, however, did not elaborate on which ingredients were triggering the review or, indeed, triggering the mandatory recall.

[Editor's note: Feb. 7 update: The department has published a list of "known additives contained in one or more products on the withdraw list," which is itself a staggering list that includes many additives, and particularly terpenes, not approved by the FDA for inhalation.]

"If you have previously used these recalled products, please consult with the medical professional at the dispensary to help identify which alternative products may be appropriate for you," the Department of Health said in an email sent to all medical marijuana patients statewide. "We are committed to your continued access to safe and effective medical marijuana products."

So, what's a Pennsylvania cannabis business operator to do?

"First of all, obviously, digest the information that the Commonwealth is providing, which is to say the products that are affected by this recall," said Michael Sampson, partner at Leech Tishman in Pennsylvania and co-leader of the firm's Cannabis Group. "Obviously it's a long list, and make sure that you carefully review the list and carefully identify any products that you handle that are impacted. It's going to be imperative to watch the fallout and the commentary that comes after this, if we'll get more detail from the government as to what additives were the focus of this. That may also give some indication if there could potentially be any further, similar recall in the future. That may impact businesses as they look at what products they want to produce or stock or sell. As far as immediate actions, Pennsylvania regulations certainly speak to mandatory recalls and the steps that grower-processors need to take in the event of a mandatory recall, which includes following the recall plan that should be in place already."

Insa provided the following statement to Cannabis Business Times:

"Insa is working quickly to comply with a recall issued by the the Pennsylvania Department of Health for all vaporizer medical marijuana products containing botanically derived terpenes. We are working hard on the launch of a new vape line that will include Cannabis Derived Terpenes and Live Resin that we expect to be approved in the near future and are looking forward to sharing that with our consumers and retail partners."