Second Lawsuit Challenges Detroit’s Adult-Use Cannabis Ordinance
Medical cannabis company JARS Cannabis is asking the court to block the city from moving ahead with its ordinance, which JARS claims violates Michigan law.
A second lawsuit has been filed to challenge Detroit’s revised adult-use cannabis ordinance, which City Council members approved in April.
Medical cannabis company JARS Cannabis filed the lawsuit in Wayne County Circuit Court June 3, arguing that the ordinance violates Michigan law, according to the Detroit Free Press.
JARS, which operates two medical cannabis dispensaries in Detroit and other medical and adult-use dispensaries elsewhere in Michigan, is asking the court to block the city from moving ahead with its ordinance, the news outlet reported.
“Detroit has created a schematic to give preferential treatment to its residents, violate MRTMA (the state's legal and regulatory framework for legally growing and selling recreational marijuana) and eradicate existing operators,” the lawsuit alleges, according to the Detroit Free Press.
Michigan launched adult-use cannabis sales in December 2019. Detroit City Council’s approval of a revised adult-use ordinance in April came nearly 10 months after U.S. District Judge Bernard Friedman issued a 19-page injunction to block the city’s previous attempt to license adult-use cannabis dispensaries within its jurisdiction.
The original ordinance would have allowed entrepreneurs to obtain “Detroit Legacy” status when applying for adult-use licenses, providing an advantage to applicants who have lived in the city for a certain number of years. The legacy provision would have also provided licensing preference to those with low incomes and those convicted of past cannabis-related crimes.
Detroit’s revised ordinance provides separate processes for residents and non-residents to receive licenses to ensure that the two types of applicants do not compete against each other in the licensing process.
The ordinance makes 100 cannabis retail licenses available, and mandates that half must be issued to social equity applicants. It also creates licenses for consumption lounges and microbusinesses.
Last month, a group of medical dispensaries in Detroit—House of Dank, Herbal Wellness, TJM Enterprises Services and Detroit Natural Selections Enterprises—filed a lawsuit, also in Wayne County Circuit Court, to challenge the revised ordinance.
The plaintiffs in that case take aim at a provision in the ordinance that bars medical cannabis operators from receiving adult-use licenses until 2027, as well as a provision that prohibits cannabis dispensary owners from having ownership interest in more than one retail license. They claim that Detroit’s medical businesses will likely close down due to lack of sales by the time the city opens the adult-use program to medical operators, and they are asking the court to block the city from prohibiting dispensaries that sell both medical and adult-use cannabis.
A status conference on that case is scheduled for Aug. 10, according to the Detroit Free Press.
In the new lawsuit filed by JARS, the company alleges that the ordinance violates state law in several ways, the news outlet reported.
JARS claims that Detroit’s scoring system for the applications does not provide a competitive application process, according to the news outlet, and that it instead awards points to applicants that are unrelated to applicants’ ability to operate in compliance with state law. For example, JARS points to the ordinance’s “Good Neighbor Plan,” which awards points to applicants for hiring Detroit residents and donating to a charitable organization in the city, according to the Detroit Free Press.
JARS argues that state law mandates that “a municipality may adopt other ordinances that are not unreasonably impracticable and do not conflict with this act or any rule promulgated pursuant to this act,” according to the news outlet, but that Detroit’s ordinance is “unreasonably impracticable” because the scoring method deters the company from applying.
JARS also alleges that the ordinance violates state law because it prohibits the issuance of more than one adult-use license to any direct or indirect owner, the Detroit Free Press reported, as well as bans the co-location of medical and adult-use cannabis operations.
“We believe the city council's latest attempt at an ordinance clearly violates state law, which hurts not just Detroit dispensary owners and investors, but also the employees that rely on these businesses to provide for their families,” Scott Roberts, whose law firm represents JARS in the case, told the news outlet.
Detroit began accepting applications for some types of adult-use cannabis businesses April 20, but city officials are still working on creating a system to start processing the applications, the Detroit Free Press reported.
Jushi Holdings Inc. Opens 33rd Retail Location Nationwide and Fourth Dispensary in Nevada
NuLeaf Las Vegas The Strip, Located by 18b Las Vegas Arts District on The Las Vegas Strip, to Begin Serving Customers on Wednesday, June 8, 2022.
BOCA RATON, Fla., June 06, 2022 (GLOBE NEWSWIRE) --PRESS RELEASE-- After acquiring Nevada-based vertically integrated operator NuLeaf, Inc., together with its subsidiaries and affiliated companies, Jushi Holdings Inc.(CSE: JUSH) (OTCQX: JUSHF), a vertically integrated, multi-state cannabis operator, announced that it is expanding its retail presence with the opening of its 33rd dispensary nationally and fourth dispensary in the Silver State: NuLeaf Las Vegas The Strip. Following the opening of NuLeaf Las Vegas The Strip, Jushi’s operations in Nevada will consist of three adult-use and medical dispensaries in Las Vegas, an adult-use and medical dispensary in Lake Tahoe, and approximately 47,000 sq. ft. of cultivation and manufacturing space.
NuLeaf Las Vegas The Strip, located at 1600 Las Vegas Blvd South, Suite 140, will officially open and begin serving consumers and medical cannabis patients on Wednesday, June 8th at 9:00 a.m. Along with providing a customer-centric retail experience, the store features an option for online ordering through NuLeaf Las Vegas The Strip. The 3,200 sq. ft. dispensary is located at the intersection of Las Vegas Boulevard and W. Wyoming Avenue. It is also next door to the 18b Las Vegas Arts District, which straddles West Charleston and is home to the city’s art-related galleries, studios, boutiques, stores, bars, restaurants, and other venues. Approximately 29,000 cars pass by the store each day on S. Las Vegas Boulevard, while W. Wyoming Avenue sees about 19,000 cars per day.
“NuLeaf Las Vegas The Strip has a fresh, new elevated design and look that is reflective of its location on the Strip,” said Jim Cacioppo, Chief Executive Officer, Chairman, and Founder of Jushi Holdings Inc. “It is incredibly well-positioned to serve the tens of thousands of global visitors who attend monthly First Friday events and visit Vegas to see the neighborhood's amazing public art and murals, all of which are accessible via short, walkable urban blocks. Also, we look forward to expanding our product selection at our four operating stores to include our own brands and growing our wholesale business in one of the largest cannabis markets in the U.S.”
NuLeaf Las Vegas The Strip will carry top cannabis brands and products, including flower, concentrates, vaporization products, tinctures, edibles, topicals, capsules, and various ancillary products such as approved rigs, batteries, merchandise and other devices, including Jushi and NuLeaf cannabis lines as well as an expanded line of NuLeaf merchandise and accessories. The retail location provides an efficient, accessible, and safe experience that goes beyond the traditional cannabis retail environment. As part of the company’s commitment to exceeding customer expectations, experienced, well-trained staff will also be on-site to help dispense products, answer questions and provide exceptional service. In addition, NuLeaf Las Vegas The Strip is handicap accessible, LGBTQIA+ friendly, and offers a standing 10% discount to anyone 65 years or older and a 20% discount to veterans and active military personnel with identification.
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The Principles of Organic Hemp Cultivation
Organic hemp cultivation has its advantages, but going through certification may not be for everybody.
Organic crop cultivation has gained popularity over the years as consumers seek out more natural products grown with fewer pesticides. With the prices of pesticides and fertilizers increasing and potential shortages, organic management techniques may start to become even more popular among farmers.
With organic production, cultivators do not use synthetic fertilizers or pesticides, and they grow on land that has not had any prohibited substances applied for a minimum of 36 months. To produce crops following the National Organic Program (NOP) standards, a grower must understand the rules and regulations to be officially considered USDA Organic. Approval from a certifying agent allows growers to use the USDA Organic label. If a crop has to go through additional processing to get made into a final product, that processing needs to use approved substances in the manufacturing to be considered organic as well.
Going through certification may not be for everybody. Certification comes with a cost, which includes yearly inspections to maintain organic status. Additionally, the cost of managing a crop organically is higher than doing so conventionally, while yields have typically been lower in organic systems. The higher cost of organic production comes from higher costs for organic seeds or plants, certification, labor, equipment and fuel.
Some producers instead opt for a hybrid production system, drawing from both conventional and organic management practices. With few pesticides available (most of which are approved for use in organic production), many hemp producers are already following management practices that align with organic farming practices. Hemp certainly is a good option to transition land into organic production.
Still, there is a value-added benefit for producers willing to go through the certification process to become fully organic. Organically grown crops have higher gross returns to farmers compared to conventionally grown crops.
Whether a grower wants to seek organic certification or simply integrate certain practices, they can start by using the following management techniques in the field this season.
Crop Selection
The main goals of organic cultivation are to prevent problems before they occur and maintain healthy soil. Organic crop management principles include a focus on implementing crop rotation, using cover crops, minimizing soil disturbance and using integrated pest management. (These principles are also becoming more popular among conventional farmers.)
Crop rotation is something all farmers should be doing, but it is especially important in organic production where fewer pesticides are available. These crops protect the ground from soil erosion while benefiting the field that they are grown in. Farmers use cover crops at times when they’re not growing cash crops.
Hemp growers should avoid growing hemp in continuous rotation on the same site and instead develop a rotation plan for their fields. Rotating hemp with crops that break up disease and insect pest cycles can help prevent outbreaks. Breaking up the pest cycle also means a lower likelihood of crop loss in subsequent years. The optimal rotation for hemp has not been determined yet, but the rotational crop prior to and following hemp should not share the same diseases and pests. The rotation should also align with the goals of the operator, meaning they have the tools, equipment and capability to sell each rotational crop.
Cover crop selection will also depend on the availability of seed, which crops are suited for the area, which diseases and pests are common for the cover crop and what sort of goals a farmer may have for the field sites. These goals could include preventing soil erosion, fixing or scavenging nitrogen, suppressing weeds, breaking up compacted soil and increasing soil organic matter. Understanding the needs of the field site will provide information on which cover crops are ideal. Many growers like to include multiple cover crop species in a single planting, reaping numerous benefits by having a diversity of species.
Organic Inputs
One of the biggest misconceptions of organic cultivation is that producers cannot use pesticides. Organic producers can use naturally derived pesticides that are approved for use in organic crop production, which must go through the Organic Materials Review Institute (OMRI). Organic pesticides have to be naturally derived and have the OMRI seal. These products include viruses, entomopathogenic fungi, plant extracts, minerals and other products that are not synthetic.
While the approved list of pesticides allowed for use in hemp aligns with those used by organic producers, this is likely to change in the coming years as more conventional products get approved for use. Because pesticides can come with a big price tag, using integrated pest management principles is the best approach to managing pests. The same general principles apply across organic pest management and conventional integrated pest management: know your pest enemies; develop a management plan; prevent outbreaks through sanitary practices, variety selection and site choice; scout early and often; and have tools ready to manage pests. These tools could include the use of beneficial organisms, proper site drainage, exclusion of pests through netting and mechanical control of weeds. The list of techniques is extensive, so finding a combination that works for the operator’s systems is the ideal approach.
Organic producers also fertilize their crops, but only with approved sources, including manure, compost, fish emulsion, bloodmeal and bone meal, to name a few. Fertilizer costs are going up, so access to certain fertilizers may become difficult. The use of cover crops and keeping soil healthy will help growers balance the cost of fertilizer with meeting the crops’ nutrient needs. Growers should test their soil to see how much fertilizer they need to apply for each field site. This also means knowing the soil type, since different soils can hold different amounts of nutrients.
Growers also need to source from certified organic producers when possible. Growers may cultivate organic without sourcing from certified organic producers; however, if there are organic varieties commercially available, they must source organic.
This becomes more challenging in the hemp space since it is a newer crop. Certifying agents can provide clarity on how to source hemp seeds and plants. Organic producers are barred from using genetically modified or transgenic organisms obtained through modern molecular techniques. This means if there was a hemp cultivar that was created using genetic engineering or gene editing, it would not be allowed for use in organic production. This is not the same as traditional breeding practices.
Going Organic
There is ongoing research on organic hemp production at universities and nonprofits like Rodale Institute and Michael Fields Agricultural Institute. If hemp growers are interested in transitioning their land to organic, the network of certifiers can be found on the USDA’s website. The certifier network can provide specific information on products, the transition process and getting inspected for certification. USDA’s organic website also has helpful resources for prospective and current organic producers.
One question farmers may have is how economical organic hemp production is compared to conventionally growing the crop. Labor is already a large expense in cannabinoid and essential oil hemp production. Depending on management practices, fertilizer and pesticide input costs may be lower compared to conventional growers. Many organic producers also manage their crops with specialized equipment, which can drive up the cost of production. This equipment could include flame weeding devices, which use an intense blaze to singe weed pests in the field.
Organically produced crops reap a higher value, but that also can make these items less accessible to the masses.
Looking past the monetary aspect, using organic management practices—even for non-certified organic producers—has environmental benefits. Ultimately, the decision to transition to organic production comes down to the grower and what aligns with their goals and finances.
Marguerite Bolt is the hemp extension specialist at Purdue University’s Department of Agronomy. She received her M.S. in entomology from Purdue University and her B.S. in entomology from Michigan State University. Bolt’s research has focused on hemp-insect interactions and plant chemistry.
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Lessons from the Downfall of the California Coast’s 'King of Cannabis'
Helios Dayspring, founder of Central California’s Natural Healing Center dispensaries, was sentenced to a 22-month prison sentence.
California’s coastal “King of Cannabis,” Helios Dayspring, owner of a San Luis Obispo cannabis cultivation site, supplier to many licensed California dispensaries, and founder of Central California’s Natural Healing Center dispensary, was sentenced to a 22-month prison sentence, in a downtown Los Angeles federal courtroom May 27.
Dayspring was also ordered to pay almost $3.5 million in back taxes to the IRS from years of unreported cannabis business income.
Dayspring, over a three-year period starting in 2016, bribed a San Luis Obispo county supervisor with money, free cannabis, and fancy meals, so that the local government official would vote in favor of policies which favored Dayspring’s San Luis Obispo cannabis farm and his Grover Beach, California retail outlet.
Dayspring’s cannabis corruption machinations were discovered after federal authorities began a multi-year investigation into local government corruption up the California coast.
California’s “Central District” federal prosecutors oversee the most-populated federal district in the nation covering some 40,000 square miles and 19 million inhabitants.
Why did the feds in this vast Central District, home to 19 million inhabitants and covering 40,000 square miles, single out Dayspring? They were investigating corruption, not cannabis.
Even though cannabis production and distribution is legal in California, it remains illegally federally. But it was not cannabis that put the authorities on the scent. It was because Dayspring acted “corruptly” by using money, cannabis and free food, to influence a local public office holder. Not understood by some, the feds have broad jurisdiction to investigate and prosecute cases at the local and state level—so long as there is a “federal interest.” Bribery of a state or local official is a federal crime where the locality or the state has received in excess of $10,000 for any federal program (which could be food stamps or even highway reconstruction money). San Luis Obispo’s budget includes federal program funds, hence the interest.
Notably, the federal prosecutor on the case was not from the Central District’s Narcotics Division. The federal prosecutor, Thomas Rybarczyk, is assigned to the Public Corruption Unit.
It was Rybarczyk, at Dayspring’s in-person federal court sentencing hearing, who honed in on Dayspring’s actions involving the government official. Other than referring to Dayspring as a “cannabis king” who wanted to expand his empire by cheating, there was little mention of cannabis at all. And no mention of cannabis’ federal illegality. Rybarczyk implored the court to punish Dayspring for “trying to fix the game” so no other operator could fairly compete.
Dayspring was sentenced last week after pleading guilty in October 2021 to a two-count federal complaint. Count One charged federal bribery and Count Two charged that Dayspring intentionally under-reported his business income on his federal tax returns.
Dayspring asserted that he was led astray by his prior lawyer (whom he wrongly thought had “expertise” with the complications and hurdles of cannabis businesses). One of Dayspring’s current lawyers, Sandra Brown, herself a former Central District federal prosecutor, spoke on Dayspring’s behalf at the sentencing hearing. Brown attributed some of the blame to Dayspring’s prior lawyer, as well, for suggesting that Dayspring bribe the county supervisor, “advice” that Brown described as “not just incorrect, but frankly illegal.”
Rybarczyk, for the government, and the federal judge (who also was a former federal prosecutor in the Central District), would have none of that and attributed all blame for the corrupt behavior to Dayspring alone. Judge Andre’ Birotte told the parties “no one forced him to do it.” The court, however, did show some leniency, sentencing Dayspring to five fewer months than the prosecutor had recommended. Plus, Dayspring’s 22-month sentence was well below the statutory maximum sentence of 13 years for the two offenses combined.
Since Dayspring was not deemed a flight risk and apparently since he had already paid the IRS the millions of back taxes, he was permitted to leave the courtroom, go home, and self-surrender to start serving his prison sentence near summer’s end on Aug. 26.
Cannabis Operators Must Not Cross the Ethical Line
So, what’s the main takeaway for licensed cannabis business operators?
Dayspring’s case provides an important lesson. He crossed the ethical line. Cannabis operators, who already—at day one—are conducting a business that is federally illegal, cannot afford to engage in conduct that is “additionally criminal.” It adds insult to injury to add political corruption and failure to pay back taxes to the mix. Any operator—even one who does not engage in corruption and declares all income—could still be subject to federal arrest and prosecution just for “being in the business.”
Why make oneself so susceptible to federal prosecution when the better course is to lay low and follow the rules?
It’s not far-fetched to believe that the feds are watching what is happening at a town’s city council, board of supervisors, or zoning commission.
Dayspring’s experience should serve as a warning to other operators. Do not “corruptly” influence political decision makers. This means: Do not slip them cash, provide them with free cannabis or with any free meals (big or small). In Dayspring’s case, $29,000 was the amount of money handed to the official and $3,000 was the value of “in-kind” gifts of food and cannabis provided by Dayspring. This means that even little bits (think ounces not kilos) of product and a few restaurant meals with wine spread out over years can amount to federal bribery.
Resist the temptation to engage in such conduct. And in small towns and counties, access can increase temptation. There, townspeople run into each other more frequently and have more daily opportunities to interact with the local level officials who are making licensing and zoning decisions.
Understand the Federal Government’s Ability (and Broad Authority) to Find Out What They Want About Those ‘in the Business’
Invariably, a federal corruption or fraud case will involve money that was not reported to the IRS. A smart federal prosecutor will bring in an IRS special agent to join a public corruption investigation and investigate the tax angle. Prosecutors often call tax charges, “the easy low-hanging fruit” because once a target’s expenditures are compared with the income reported, if the disparity is extreme the feds are likely have an easy-to-prove tax prosecution.
Once the IRS is aboard a federal criminal investigation, it becomes easier for the prosecutor to get copies of the target’s federal tax returns without a court order. The IRS agent, often with the help of an IRS revenue analyst, will then comb through a target’s bank statements, credit and debit card statements, business records, and federal filings (to include currency transaction reports, CTRs) and compare that information with a target’s tax returns. That happened here with Dayspring.
The federal agents dove into Dayspring’s financial information for a period of years to include years before Dayspring’s bribery of the local official. The result? Caught dead-to-rights, Dayspring entered a plea deal where even though he agreed that he under-reported $6.5 million of cannabis business proceeds for a single year (2018), he had to accept criminal responsibility and promise to pay four years of back taxes totaling just under $3.5 million.
And with the hope that such a payment to the IRS would increase the chances of a lower sentence than the statutory max of 13 years, Dayspring’s current lawyers advised him to pay in full, which he did before his sentencing. Surely, the judge took that fact into consideration when imposing Dayspring’s 22-month sentence under federal guideline sentence.
Dayspring’s tax practices should serve as a lesson to those in the cannabis business. All cannabis operators are required to pay their taxes. It does not matter whether the product being grown or sold is illegal in any regard. The duty to pay taxes is irrespective of the legality of the business. Keeping sloppy books or two sets of books or no books—or, certainly, not reporting all cannabis income— can result in federal criminal tax charges.
One Last Takeaway? Your Phone Is Subject to Searches, Too
What nailed the coffin shut for Dayspring, in addition to the financial record analysis, was his overuse of the text message function on his iPhone.
During the investigation, the federal authorities acquired the texts between Dayspring and the town supervisor. The defendant’s own words made clear that the money, meals, and gifts of cannabis were in exchange for political action to benefit Dayspring.
In one text chain from December 2018, Dayspring asked for the official to continue to postpone new cannabis regulations that would negatively impact Dayspring’s businesses and would let competitors into the field.
DAYSPRING: "It's really important you guys extend the time frame for submission and don't allow other people in yet [as] [t]his affects all the properties that I just got investment into, every one of them. If I am not deemed complete and get accepted, conditional use permits, I don't get my ownership in the land."
COUNTY SUPERVISOR: "Got it. We'll see what we can do...”
After that exchange, two days later, the county supervisor texted Dayspring that the official had been successful.
In another over-the-top text exchange, the county official texted that his birthday was around the corner and what was Dayspring going to do for him. Text message: "Tomorrow is your favorite County Supervisor's birthday…”
The federal agents got records from a Pismo Beach restaurant where the birthday meal for the supervisor was held. The authorities also discovered that $5,000 cash from Dayspring had been provided to the birthday celebrant.
Get The Best Legal Perspectives From Former Federal Prosecutors and/or ‘Big Firms’ Or Firms That Specialize In Cannabis Regulatory and Transactional Work
From my view, as a former federal prosecutor, and someone who teaches cannabis law in both business and law schools, Dayspring’s biggest mistake (besides the criminality) was not doing enough investigation to find the right lawyers initially (at the start of his business) to guide him.
As state legalization regimes proliferate across the political spectrum and as states institute licensing regimes that give the power to say “yes” or “no” to cities, towns, and counties (big and small), political corruption opportunities will expand.
Cannabis business operators need experienced lawyers to guide them. Not all lawyers have the skill set to do so. It is the obligation of the operator to identify the right lawyer for the job. The operator must ask specific and pointed questions of any lawyer under consideration, even one hired for an initial (one-shot) consultation.
They are:
Have you ever tried a case in federal court?
Have you ever worked as a federal prosecutor?
Are you working at a law firm with 50 or more lawyers with offices in other states? (also known as “Big Law”) or have you worked at “Big Law” and are now in a specialty or boutique firm that advises big business on such things as tax, land use, employment, mergers and acquisitions (M&A)?
Have you assisted five or more individuals or entities (in separate and unrelated matters) in preparing and submitting five separate and unrelated cannabis licensing applications to government authorities?
Have you assisted five or more individuals or entities (in separate and unrelated matters) with preparing and submitting to government authorities five separate and unrelated local licensing or zoning or land use (conditional use) permits?
If the lawyer answers “yes” to any single question (1 to 5), the lawyer can be considered for hiring to give a consultation and then, with more questions asked, to be considered as an occasional legal consultant, or even as someone to place on the payroll.
The most important question of the five? Has the lawyer assisted and prepared five separate and unrelated cannabis licensing applications?
There are also questions that can weed out the wrong lawyer for the cannabis operator. They are:
Do you defend (in state and local courts) individuals charged with cannabis possession and/or distribution?
Do you defend people charged with other crimes to include drunk driving and assault?
Do you represent people in family law matters to include divorce and child custody?
A lawyer who represents those charged with cannabis crimes in state and local courts (to include possession and distribution) and/or who represents defendants charged with non-cannabis related crimes (to include drunk driving and assault) is not often the right lawyer to represent cannabis operators with licensing applications and regulatory matters.
Those admirable criminal defense warriors who ensure that every defendant is represented and that all defendants have their day in court are to be heralded. They put state and local prosecutors “through their paces.” Family lawyers (who handle marriage break ups and custody decisions) often do heartbreaking and essential work too.
But even though some criminal defense lawyers and family lawyers have “cannabis-related” law practices, and some refer to themselves as “cannabis lawyers,” they are not generally equipped to provide quality regulatory and transactional services to the cannabis operator.
The “cannabis lawyers” are typically not of the same caliber as Big Law regulatory and transactional lawyers or as those formerly part of Big Law who start or join specialty practices (such as tax and land use). Big Law, specialty, and/or former federal prosecutors who handle cannabis industry work, as a general rule, intimately know the ins and outs of cannabis licensure and have handled complex cannabis regulatory and/or transactional matters. Their law firms also have the personnel resources (to include support staff) to excel in the morass of licensing and regulatory hurdles.
Many of the Big Law, former federal prosecutors or specialty firm lawyers who advise single state operators, MSOs, and brands in the cannabis industry, are loath to ever refer to themselves as “cannabis lawyers.” In fact, they tend to chafe at the moniker and affirmatively tell prospective clients, “I am not a cannabis lawyer.” The lawyer-experts go on to explain that they have expertise in the wide array of laws, regulations and practices affecting the industry and things from their perspectives “self-proclaimed cannabis lawyers do not.”
Brad Sodowick, a professor at Drexel University’s LeBow School of Business who teaches a course called “Cannabis as an Emerging Business” has advice for all cannabis operators on this point: “Get a former federal prosecutor and/or someone at a big firm or who worked at Big Law and not a solo-shop criminal defense attorney who represents marijuana dealers. Pay for expert consultation before starting the business, not after paying a bribe to a local official.”
Dayspring should have talked to the professor first. Bets are on that Dayspring’s first lawyer—the one who (according to Dayspring) encouraged the bribes to the county supervisor, would not have been Dayspring’s lawyer had Dayspring asked the right questions before engaging in the corrupt behavior.
Dayspring’s downfall is a warning to all.
Julie A. Werner-Simon is a former federal prosecutor, former constitutional law fellow, and currently serves as a law professor (adjunct) at University of Southern California’s Gould School of Law, Drexel University’s Kline School of Law, and is also a legal analyst at Drexel’s LeBow School of Business.
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Illinois Adult-Use Cannabis Retailers Record Nearly $2.7 Billion Since Legalization
Cannabis shoppers in The Prairie State spent more than $129.8 million at adult-use dispensaries in May.
Cannabis sales have hit a three-month plateau in Illinois.
Adult-use retailers reported $129.8 million in cannabis sales in May, according to monthly data released June 3 by the Illinois Department of Financial and Professional Regulation (IDFPR). That’s a slight dip from April ($131.8 million) and March ($131 million), representing maturity in a market that has experienced regular growth since commercial sales first launched in January 2020.
Since that launch, Illinois has sold nearly $2.7 billion in adult-use cannabis and remains on pace for another record year. Through the first five months of 2022, adult-use sales are up 22.3% from the same timeframe a year ago.
While overall sales for May 2022 fell slightly compared to the previous two months, out-of-state resident sales grew slightly to nearly $41 million, representing 31.6% of the state’s retail market. However, out-of-state resident sales have represented a constant share of the retail market—between 31% and 32%—throughout 2021 and 2022.
In regard to transactional volume, Illinois’ 110 licensed dispensaries sold more than 3 million items in May. But that retail footprint will soon expand.
On May 27, a judge ended a court order that was preventing IDFPR officials from issuing 185 new adult-use dispensary licenses that were awarded during a three-part lottery last July and August. The majority of those licenses are reserved for social equity applicants.
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