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With 10 Dispensary Licenses on the Table, San Diego Reaches Out to Those Disproportionately Affected by War on Drugs

With a thriving illicit market in southern California, major cities like San Diego and Los Angeles have pushed social equity proposals to the forefront—with mixed results.

May 20, 2022

Eric Sandy

Dispensary News Licensing News State by State: California

San Diego has 26 cannabis dispensaries operating within the city, as of May 2022, with another 10 licenses awaiting their applicants. To provide a measure of equity to the burgeoning industry, city officials will hold nine “listening sessions” with community members.

“Your voice will help us develop a blueprint for a future equity program that provides fair pathways for all to enter the legal cannabis industry throughout the city,” according to the announcement.

With a thriving illicit market in southern California, major cities like San Diego and Los Angeles have pushed social equity proposals to the forefront—with mixed results. The San Diego initiative aims to place the perspectives of its residents right in the middle of any future policy.

The sessions run May 23 – June 16 at locations throughout the city. "The areas selected have been ones that have historically seen disinvestment," Lara Gates, the Cannabis Business Deputy Director for San Diego, told the local CBS affiliate.

HERBL Enters Exclusive Distribution Partnerships with Ball Family Farms and 40 Tons, Marking this Year's Cannabis Freedom Day

HERBL to scale two top social equity cannabis brands across California.

May 20, 2022

Posted by Melissa Schiller

News State by State: California

SANTA BARBARA, Calif., May 20, 2022 /PRNewswire/ -- PRESS RELEASE-- HERBL, a California-based cannabis supply chain company, today announced exclusive distribution partnerships with Ball Family Farms, a Black-owned cannabis brand, and 40 Tons, a Black female-owned social impact cannabis brand. HERBL begins distribution of both brands' range of cannabis products in California this month, an opportune time to drive visibility to Cannabis Freedom Day, or 520, and Brand efforts towards social equity and justice in the cannabis industry.

Ball Family Farms is a social equity commercial operator that cultivates hand-crafted flower. Founded by Chris Ball, a former legacy operator and professional athlete, Ball Family Farms uses proprietary, in-house genetics as well as living soil and sustainable cultivation systems. Prioritizing equal pay, diversity and women's empowerment in the workplace, Ball Family Farms fosters a positive company culture and a passion for exceptional cannabis products. Popular strains include Daniel Larusso, Dragonfly Jones, Nino Brown and more.

"Ball Family Farms operates by our motto, 'cultivating the culture from the ground up,' in each new venture we undertake," said Chris Ball, founder of Ball Family Farms. "Our partnership with HERBL is no exception. Between their widespread reach in California and commitment to cannabis culture in our state, HERBL is the perfect partner as our growing brand looks to the future."

40 Tons was founded by Loriel Alegrete, Anthony Alegrete and Corvain Cooper, who experienced the impact of cannabis prohibition firsthand when Anthony and Cooper were incarcerated on cannabis charges. Upon Anthony's release, he and Loriel began to advocate for Cooper to be released from his life sentence for non-violent cannabis distribution charges. Cooper ultimately received a rare clemency in 2021. 40 Tons began with the mission to not only provide high-quality cannabis experiences but also to increase the representation of BIPOC communities in cannabis and advocate for those experiencing incarceration. The brand built advocacy directly into its business model by investing profits from each purchase into social equity efforts. 40 Tons' product line, which features full-size 1g pre-rolls and 1/8th flower packs in a variety of strains, will be available throughout California on May 30.

"With the support of HERBL, 40 Tons will be able to impact significantly more lives," said Loriel Alegrete, CEO and co-founder of 40 Tons Brand. "Sharing our brand and story with new audiences not only introduces consumers to our quality products but also enables our team to fund even more restorative justice initiatives. HERBL's hands-on approach and organic relationship with our team place 40 Tons in a prime position to succeed."

It was important to 40 Tons to launch close to, and to give visibility to, Cannabis Freedom Day. Cannabis Freedom Day is an industry holiday that brings awareness to the disproportional social, racial and economic injustices that BIPOC communities have faced due to cannabis prohibition. The 40 Tons team is driving visibility on this day through their social platforms.

"HERBL is committed to partnering with the best-of-the-best in cannabis and is honored to welcome Ball Family Farms and 40 Tons into our top-tier distribution portfolio," said Mike Beaudry, CEO of HERBL. "Both brands are dedicated to fostering positive social impact in cannabis, whether that be through diversity in the workplace or providing resources to support restorative justice. We look forward to scaling Ball Family Farms and 40 Tons and increasing their visibility in one of the most competitive cannabis markets in the world."

HERBL is excited to welcome 40 Tons and Ball Family Farms to their growing portfolio of equity brands and partners. California-based brands interested in working with HERBL can learn more here.

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Illinois Begins Issuing Craft Grow Cannabis Licenses

A judge lifted an injunction in March to allow state officials to proceed with awarding 60 licenses that had been held up by litigation.

May 19, 2022

Melissa Schiller

News Grower/Agriculture State by State: Illinois

Illinois has officially started the process of issuing craft grow cannabis licenses that were held up in court until March, when a judge lifted an injunction to allow state officials to proceed with awarding the 60 licenses.

The Illinois Department of Agriculture awarded the first round of craft grow licenses in August 2021, and on May 18, the first three of these businesses received approval to begin construction on their facilities, according to the Chicago Tribune.

The three businesses that received the green light, Galaxy Labs in Richton Park, Mint Cannabis in Forest Park and Star Bud Illinois in Rockford, are all majority Latino- or Black-owned, the news outlet reported.

State law required the department to issue the 60 additional craft grow licenses by Dec. 21, 2021, but Sangamon County Judge Gail Noll and Cook County Judge Neil Cohen ordered that the licenses could not be awarded until litigation from unsuccessful applicants was settled, ultimately stalling the licensing process while the litigation moved through the legal system.

Last week, roughly two months after that injunction was lifted, state officials began notifying the first applicants eligible for those 60 licenses, according to the Chicago Tribune. They now have 10 days to complete the required paperwork and pay the license fee, the news outlet reported.

Meanwhile, 185 adult-use cannabis dispensary licenses are held up by separate court orders stemming from litigation challenging that application scoring process.

The Illinois Department of Financial and Professional Regulation announced in March that it would simplify the cannabis retail licensing process with a set of new rules.

The department’s proposed regulations for the next round of dispensary license applications open the process to out-of-state and non-social equity applicants, the Chicago Tribune reported.

The rules will likely be considered for approval by the Illinois Joint Committee on Administrative Rules this summer, according to the news outlet.

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Massachusetts House Passes Bill to Promote Diversity in State’s Cannabis Industry

The Senate approved similar legislation last month.

May 19, 2022

Melissa Schiller

Legislation and regulation News State by State: Massachusetts

Massachusetts lawmakers seem poised to tackle some of the cannabis industry’s biggest woes this legislative session.

The House voted 153-2 May 18 to pass a bill that would promote greater diversity in the market, increase oversight on the host community agreements that cannabis businesses must enter into with the state’s municipalities, and establish a regulatory framework for on-site cannabis consumption lounges, according to a GBH News report.

“Since the passage of legal recreational cannabis, the creation and growth of the legal industry in the commonwealth has been, in most cases, a success, leading to hundreds of new businesses, thousands of new jobs and the creation of new revenue streams for the commonwealth and its municipalities through this new and innovative industry,” Rep. Dan Donahue, D-Worcester, the House chair of the Cannabis Policy Committee and the bill’s sponsor, said, according to the news outlet. “It is, however, time to revisit the initial legislation to provide clarity on the intent of legislation and to work to ensure we continue to remove barriers to entry into this unique industry for those communities who are so disproportionately harmed and impacted by the prohibition of marijuana.”

The Senate approved similar legislation last month.

While Massachusetts mandated equity and inclusion as part of its legal cannabis framework and launched programs to support entrepreneurs from communities most impacted by the war on drugs, only 20 of the state’s 346 cannabis businesses are tied to participants in the Cannabis Control Commission’s (CCC) social equity program or are economic empowerment entrepreneurs, GBH News reported.

Donahue’s legislation would allocate 20% of the state’s Marijuana Regulation Fund, which houses the revenue generated from Massachusetts’ cannabis excise tax, application and licensing fees, and industry penalties, into a new Social Equity Trust Fund, according to the news outlet.

The new fund would offer grants and loans to help support those most disproportionately impacted by prohibition in getting their businesses up and running.

The bill would also more specifically define what can and cannot be included in host community agreements between cannabis businesses and their local jurisdictions, GBH News reported.

The legislation would codify a municipality’s right to waive a host community agreement, according to the news outlet, and would also require the CCC to “review and approve each host community agreement as part of a completed marijuana establishment or medical marijuana treatment center license application and at each license renewal.”

The bill would bar CCC officials from approving final license applications until the host community agreement is approved, GBH News reported.

Donahue's legislation also aims to jumpstart cannabis consumption lounges in the state.

The CCC approved rules for the lounges more than two years ago, according to GBH News, but regulators have said that the pilot program it created for up to 12 of the state’s municipalities cannot launch without a change in state law.

Donahue’s legislation includes what he calls “technical fixes” that allow municipalities to vote on cannabis consumption lounges by local referendum or through a vote of the municipal government, GBH News reported.

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Minnesota Senate Blocks Vote on Adult-Use Cannabis Legalization Bill

The Republican-led chamber voted against a procedural motion that would have pulled the legislation from committee and brought it to the floor for a vote.

May 19, 2022

Melissa Schiller

Legislation and regulation News State by State: Minnesota

Lawmakers in the Minnesota Senate blocked a vote on an adult-use cannabis legalization bill May 18 when they voted against a procedural motion that would have pulled the legislation from committee and brought it to the floor for a vote, according to the Duluth News Tribune.

Senate Democrats led the push to bring the legislation to the floor, arguing that the House passed the bill, but it had not yet received a hearing in the Senate, the news outlet reported.

The Republican-led Senate then voted, 33-31, against the motion to take up the legislation, according to the Duluth News Tribune.

“Minnesotans want to have this conversation about legalization of cannabis, and they want to see us move ahead,” the bill’s author, Senate Majority Leader Melisa López Franzen, DFL-Edina, told the news outlet. “We all know that legalizing cannabis will have economic benefits, but just as importantly, we need to address the disparities in the criminal justice system around cannabis.”

While Minnesota currently has a medical cannabis program, Republicans voiced concerns about broader legalization.

“I can’t believe we’re even talking about that,” Sen. Bill Ingebrigtsen, R-Alexandria, said on the floor, according to the Duluth News Tribune. “This is not helping police. If it’s voted in, police are going to have a little more security because they’re going to be cleaning up a lot of accidents on our highways."

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