THE HUMBOLDT PREHARVEST DEP REPORT 2023

For many cannabis enthusiasts, the first real wave of the year’s harvest starts with the light-deprivation-style grown cannabis that comes down each June. 

The resulting cannabis is often shortened to deps by industry folks. They’re produced by farmers using various means to control the light cycle to force plants to flower. They started to become prevalent in the mid-2000s. For many years a lot of people just used the early dep harvests to pay their trimmers in the fall when their full-term harvest came down. But the quality of the product saw the prevalence of the cultivation style continues to grow to this day, where many expect solid deps to be a big part of the forthcoming national marketplace. 

When it comes to deps, Humboldt County is one of the best places in the world to find the best representations of various strains grown that way. In the years The Emerald Triangle’s farms weren’t decimated by fire and smoke, it basically seemed impossible to grow better deps than the cream of the crop coming out of Humboldt’s hills annually. 

But as opposed to smoke, this year’s early season saw farmers dealing with a lot of overcast skies as the heavens opened up to pour water on California. The Vesuvio Gardens team told us there was basically no spring this year and that led to many people getting a later start than usual. Vesuvio was a couple of weeks into flower when we chatted with them.

“We’re only about 10 days behind in Honeydew, and in Whitehorn, we’re pretty much on schedule,” Vesuvio’s founder Joe Jacovini told L.A. Weekly. He went on to note the early runs don’t do so well in Humboldt’s valleys, as opposed to the hilltops where they can get a lot of light. 

One of Humboldt’s most prominent dep cultivators is Jason Gellman of Ridgeline Farms. Ridgeline returned to the top of The Emerald Cup podium this year after previously winning back-to-back editions of one of the most coveted prizes in cannabis. With the exception of a few full-sun plants he does for personal use, Gellman is exclusively growing sungrown deps. He does partner at another light-assisted facility in the winter. 

We asked Gellman how the scene up north was looking, as he preps for the 2023 harvest to begin. 

“We know we hear the prices are going up, I hear that a lot, but nobody has herb,” Gellman told L.A. Weekly. “Does that mean it’s going to really go up? Because usually when you get the herb, then where are all the buyers, but I feel like right now, this should be a good year. I know there’s a pretty big drought of good-quality weed right now.”

We asked Gellman if the trophy shelf makes it easier for him to get top dollar against the rest of the harvest. 

“I always hear that a lot of the time and everyone thinks because I got a name and a brand, they think I can get more than X guy and it’s really not the case,” Gellman replied. “I mean you spend so much money packaging and prerolls and everything like that, it’s really hard. The people who wholesale their weed probably make more money than I do at the end of day.” 

Despite the perils of packaging as he listens to the numbers start to fly around the bulk product, he’s excited for the weeks ahead. 

“I think it’s going to be decent. It really depends on the weather. We’ve had unstable weather so far. For this first round. We didn’t have sun for three days straight. And so if we don’t get heat, we got small bud and that’s going to really affect the quality of the whole dep harvest around here on round one. So we’re playing with the weather, and we’re hoping that it’s shifting, it’s a little more scalable, and I think it’s gonna be a good year.”

After going through the struggles of the past few years, 2023 is looking daily upbeat for Ridgeline. 

“I think for the people that have hung in there are gonna get rewarded, be able to make a living and I mean that’s what it’s all about right now. Just trying to stay alive, make a living and keep our jobs,” Gellman said. 

MISSOURI CELEBRATES FIRST ADULT-USE CANNABIS SALE

Missouri’s first weekend of legal cannabis sales is in the books. 

The nearly 200 dispensaries dotting the state netted $12.6 million in sales in the first three days of adult-use sales. There is an argument to be made that number may have been higher had the permit release timing been a little clearer; even operators didn’t realize they would be allowed to commence sales Friday. 

John Mueller is the CEO of Missouri’s largest operator Greenlight, a multi-state operator that has 15 retail permits in Missouri. Mueller, a Missouri native, told L.A. Weekly that Greenlight had its fair share of action over the weekend, with sales doubling overnight once adult-use kicked in. 

Mueller notes the tail end of last week was a bit of a gray zone. 

“Then what happened is, on Thursday, the state said they would start issuing out the licenses and you didn’t have to wait. We thought they would have all licenses at open at whatever time on the sixth,” Mueller explained.

They would get the permit at 8:30 a.m. Friday morning and be open in an hour and a half. But unlike the big lines we’re used to seeing outside dispensaries on opening day, at first it was a quest by consumers to confirm the news on shops opening earlier than expected. Mueller says the phone continues to ring off the hook in that regard. 

Even with the traditional first sale not the spectacle it’s been in other states, dispensaries did great. Mueller noted some places saw up to four times the amount of usual foot traffic depending on where. 

Mueller said there is plenty to be happy about besides the numbers. He feels dispensary operators got a lot to work with in the regulations. 

“Thrilled with the performance, but there is a whole lot of stuff. You know we got drive-through here authorized, express pick-up windows in the lobbies and then also making sure that that patient wasn’t relegated to a bad status.”

Greenlight has separated the adult-use and medical lines at the dispensaries to make sure none of the state’s 200,000 medical cannabis patients feel left behind in the transition over to adult-use sales. 

Mueller doesn’t feel like things have been overly restrictive on operators, apart from the normal childproofing packaging and things like that.

“We carry about 300 products per store, so we’re a pretty wide selection and we’ve got a pretty robust cultivation and manufacturing side of this equation,” Mueller said. 

He noted the dispensaries currently operating are able to acquire flower from 28 different cultivators in the state. He thinks there are about 50 different manufacturers in the state that are all cranking out products too. 

While that number may sound small to Californians, it’s still a decent number of producers on day one. We asked Mueller if it was enough for a real level of competition similar to the fight for shelf space we’re seeing on the west coast. 

He was quick to argue, sure. Currently, Greenlight’s discount eighths are running $25, with the top shelf clocking in at $45. 

There weren’t a lot of surprises for Greenlight during the transition. The company was able to lean on its past experiences transitioning from a medical market to adult-use in Nevada. Greenlight also has operations across the southeast and midwest in Arkansas, West Virginia, Illinois and South Dakota.

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

SENATE BILL

NO. 58

An act to amend Sections 11054, 11350, 11364, 11364.7, 11365, 11377, 11379, 11382, and 11550 of, to add Sections 11350.1 and 11377.1 to, to add and repeal Section 11214 of, and to repeal Section 11999 of, the Health and Safety Code, relating to controlled substances.

LEGISLATIVE COUNSEL’S DIGEST

SB 58, Wiener. Controlled substances: decriminalization of certain hallucinogenic substances.

(1) Existing law categorizes certain drugs and other substances as controlled substances and prohibits various actions related to those substances, including their manufacture, transportation, sale, possession, and ingestion.

This bill would, on and after January 1, 2025, make lawful the possession, preparation, obtaining, or transportation of, specified quantities of psilocybin, psilocyn, dimethyltryptamine (DMT), and mescaline, for personal use, as defined, by and with persons 21 years of age or older. The bill would provide penalties for possession of these substances on school grounds, or possession by, or transferring to, persons under 21 years of age.

The bill would require the California Health and Human Services Agency to convene a workgroup to study and make recommendations on the establishment of a framework governing the therapeutic use, including facilitated or supported use, of those substances. The bill would require that workgroup to send a report to the Legislature containing those recommendations on or before January 1, 2025.

(2) Existing law prohibits the cultivation, transfer, or transportation, as specified, of any spores or mycelium capable of producing mushrooms or other materials that contain psilocybin or psilocyn.

This bill would, on and after January 1, 2025, make lawful the cultivation or transportation of specified quantities of spores or mycelium capable of producing mushrooms or other materials that contain psilocybin or psilocyn for personal use, as defined, by and with persons 21 years of age or older.

(3) Existing law prohibits the possession of drug paraphernalia, as defined.

This bill would exempt from this prohibition, paraphernalia related, as specified, to these specific substances. The bill would also exempt from the prohibition items used for the testing and analysis of controlled substances.

(4) Existing law states the intent of the Legislature that the messages and information provided by various state drug and alcohol programs promote no unlawful use of any drugs or alcohol.

This bill would repeal those provisions.

(5) By eliminating and changing the elements of existing crimes and creating new offenses, and by requiring new duties of local prosecutors, this bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

(6) This bill would state that its provisions are severable.

DIGEST KEY

Vote: majority   Appropriation: no   Fiscal Committee: yes   Local Program: yes  

BILL TEXT

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1.

 The Legislature finds and declares all of the following:

(a) For over fifty years, the War on Drugs has caused overwhelming financial and societal costs. The current United States drug control scheme does not reflect a modern understanding of the incentives, economics, or impacts of substance use, nor does it accurately reflect the risks or potential therapeutic benefits of many presently illicit substances.

(b) Drug prohibition has failed to deter drug use, and it has increased its danger. Criminalization of drug use has created an underground market in which difficult-to-verify dosages and the presence of adulterants increase the risks of illicit drugs.

(c) Lack of honest, evidence-based drug education has paved the way for decades of stigma and misinformation, which have contributed to increasing the dangers of drug use.

(d) Encouraging access to harm reduction tools like fentanyl test strips, drug-checking kits, gas chromatography mass spectrometry machines, and milligram scales increases public health and safety by allowing users to make more accurate decisions about their personal use.

(e) Clinical research demonstrates the potential use of some psychedelic compounds, in conjunction with therapy, for the treatment of mental health, such as end-of-life anxiety, depression, post-traumatic stress, and substance use disorders. Observational evidence and traditional uses of psychedelic plants and fungi demonstrate how ceremony and community are utilized to enhance the outcomes and increase the safety of spiritual practice, emotional healing, and responsible personal growth.

(f) Proposition 122 in Colorado, which passed in November 2022, with a 53 percent vote of the state population, will decriminalize the noncommercial, personal possession of psychedelic plants and fungi and establish a regulated therapy system to provide people with therapeutic access to psychedelic plants and fungi.

(g) Measure 109 in Oregon, which passed in November 2020, with a 56 percent vote of the state population, will establish a regulated psilocybin therapy system in Oregon to provide people therapeutic access to psilocybin.

(h) Measure 110 in Oregon, which passed in November 2020, with a 58 percent vote of the state population, decriminalized the personal possession of all drugs, and almost 20 countries around the world including Portugal, the Czech Republic, and Spain, have expressly or effectively decriminalized the personal use of illicit substances.

(i) The City Councils of the City of Oakland and the City of Santa Cruz and the Board of Supervisors of the City and County of San Francisco have all passed resolutions deprioritizing the enforcement of the possession, use, and propagation of psychedelic plants and fungi, effectively decriminalizing in those cities. Since June 2019, the City of Ann Arbor, Michigan, and the Cities of Somerville and Cambridge, Massachusetts have all decriminalized the possession, use, and propagation of psychedelic plants and fungi at the local level. In 2020, Washington, D.C., passed Initiative 81 to decriminalize and deprioritize the possession and use of psychedelic plants and fungi with 76 percent voter approval.

(j) This act will decriminalize the noncommercial, personal use of specified controlled substances. This provision would take effect on January 1, 2025. This act further decriminalizes the use of specified controlled substances for the purpose of group community-based healing, including facilitated and supported use, risk reduction, and other related services, but delays implementation of this provision until a framework for the therapeutic use, which would include community-based healing, facilitated and supported use, risk reduction, and other related services, of the specified controlled substances is developed and adopted. This bill lays the groundwork for California to develop a therapeutic access program for psychedelic plants and fungi.

(k) These changes in law will not affect any restrictions on the driving or operation of a vehicle while impaired, or an employer’s ability to restrict the use of controlled substances by its employees, or affect the legal standard for negligence.

(l) Peyote is specifically excluded from the list of substances to be decriminalized, and any cultivation, harvest, extraction, tincture or other product manufactured or derived therefrom, because of the nearly endangered status of the peyote plant and the special significance peyote holds in Native American spirituality. Section 11363 of the Health and Safety Code, which makes it a crime in California to cultivate, harvest, dry, or process any plant of the genus Lophophora, also known as Peyote, is not amended or repealed.

(m) The State of California fully respects and supports the continued Native American possession and use of peyote under federal law, Section 1996a of Title 42 of the United States Code, understanding that Native Americans in the United States were persecuted and prosecuted for their ceremonial practices and use of peyote for more than a century and had to fight numerous legal and political battles to achieve the current protected status, and the enactment of this legislation does not intend to undermine explicitly or implicitly that status.

SEC. 2.

 Section 11054 of the Health and Safety Code is amended to read:

11054.

 (a) The controlled substances listed in this section are included in Schedule I.

(b) Opiates. Unless specifically excepted or unless listed in another schedule, any of the following opiates, including their isomers, esters, ethers, salts, and salts of isomers, esters, and ethers whenever the existence of those isomers, esters, ethers, and salts is possible within the specific chemical designation:

(1) Acetylmethadol.

(2) Allylprodine.

(3) Alphacetylmethadol (except levoalphacetylmethadol, also known as levo-alpha-acetylmethadol, levomethadyl acetate, or LAAM).

(4) Alphameprodine.

(5) Alphamethadol.

(6) Benzethidine.

(7) Betacetylmethadol.

(8) Betameprodine.

(9) Betamethadol.

(10) Betaprodine.

(11) Clonitazene.

(12) Dextromoramide.

(13) Diampromide.

(14) Diethylthiambutene.

(15) Difenoxin.

(16) Dimenoxadol.

(17) Dimepheptanol.

(18) Dimethylthiambutene.

(19) Dioxaphetyl butyrate.

(20) Dipipanone.

(21) Ethylmethylthiambutene.

(22) Etonitazene.

(23) Etoxeridine.

(24) Furethidine.

(25) Hydroxypethidine.

(26) Ketobemidone.

(27) Levomoramide.

(28) Levophenacylmorphan.

(29) Morpheridine.

(30) Noracymethadol.

(31) Norlevorphanol.

(32) Normethadone.

(33) Norpipanone.

(34) Phenadoxone.

(35) Phenampromide.

(36) Phenomorphan.

(37) Phenoperidine.

(38) Piritramide.

(39) Proheptazine.

(40) Properidine.

(41) Propiram.

(42) Racemoramide.

(43) Tilidine.

(44) Trimeperidine.

(45) Any substance that contains any quantity of acetylfentanyl (N-[1-phenethyl-4-piperidinyl] acetanilide) or a derivative thereof.

(46) Any substance that contains any quantity of the thiophene analog of acetylfentanyl (N-[1-[2-(2-thienyl)ethyl]-4-piperidinyl] acetanilide) or a derivative thereof.

(47) 1-Methyl-4-Phenyl-4-Propionoxypiperidine (MPPP).

(48) 1-(2-Phenethyl)-4-Phenyl-4-Acetyloxypiperidine (PEPAP).

(c) Opium derivatives. Unless specifically excepted or unless listed in another schedule, any of the following opium derivatives, its salts, isomers, and salts of isomers whenever the existence of those salts, isomers, and salts of isomers is possible within the specific chemical designation:

(1) Acetorphine.

(2) Acetyldihydrocodeine.

(3) Benzylmorphine.

(4) Codeine methylbromide.

(5) Codeine-N-Oxide.

(6) Cyprenorphine.

(7) Desomorphine.

(8) Dihydromorphine.

(9) Drotebanol.

(10) Etorphine (except hydrochloride salt).

(11) Heroin.

(12) Hydromorphinol.

(13) Methyldesorphine.

(14) Methyldihydromorphine.

(15) Morphine methylbromide.

(16) Morphine methylsulfonate.

(17) Morphine-N-Oxide.

(18) Myrophine.

(19) Nicocodeine.

(20) Nicomorphine.

(21) Normorphine.

(22) Pholcodine.

(23) Thebacon.

(d) Hallucinogenic substances. Unless specifically excepted or unless listed in another schedule, any material, compound, mixture, or preparation that contains any quantity of the following hallucinogenic substances, or that contains any of its salts, isomers, and salts of isomers whenever the existence of those salts, isomers, and salts of isomers is possible within the specific chemical designation (for purposes of this subdivision only, the term “isomer” includes the optical, position, and geometric isomers):

(1) 4-bromo-2,5-dimethoxy-amphetamine—Some trade or other names: 4-bromo-2,5-dimethoxy-alpha-methylphenethylamine; 4-bromo-2,5-DMA.

(2) 2,5-dimethoxyamphetamine—Some trade or other names: 2,5-dimethoxy-alpha-methylphenethylamine; 2,5-DMA.

(3) 4-methoxyamphetamine—Some trade or other names: 4-methoxy-alpha-methylphenethylamine, paramethoxyamphetamine, PMA.

(4) 5-methoxy-3,4-methylenedioxy-amphetamine.

(5) 4-methyl-2,5-dimethoxy-amphetamine—Some trade or other names: 4-methyl-2,5-dimethoxy-alpha-methylphenethylamine; “DOM”; and “STP.”

(6) 3,4-methylenedioxy amphetamine.

(7) 3,4,5-trimethoxy amphetamine.

(8) Bufotenine—Some trade or other names: 3-(beta-dimethylaminoethyl)-5-hydroxyindole; 3-(2-dimethylaminoethyl)-5 indolol; N,N-dimethylserolonin, 5-hydroxy-N,N-dimethyltryptamine; mappine.

(9) Diethyltryptamine—Some trade or other names: N,N-Diethyltryptamine; DET.

(10) Dimethyltryptamine—Some trade or other names: DMT.

(11) Ibogaine—Some trade or other names: 7-Ethyl-6,6beta, 7,8,9,10,12,13-octahydro-2-methoxy-6,9-methano-5H-pyrido [1’,2’:1,2] azepino [5,4-b] indole; Tabernantheiboga.

(12) Lysergic acid diethylamide.

(13) Cannabis.

(14) Mescaline, derived from plants presently classified botanically in the Echinopsis or Trichocereus genus of cacti, including, without limitation, the Bolivian Torch Cactus, San Pedro Cactus, or Peruvian Torch Cactus, but not including mescaline derived from any plant described in paragraph (15).

(15) Peyote—Meaning all parts of the plant presently classified botanically as Lophophora williamsii Lemaire, whether growing or not, the seeds thereof, any extract from any part of the plant, and every compound, manufacture, salts, derivative, mixture, or preparation of the plant, its seeds or extracts (interprets 21 U.S.C. Sec. 812(c), Schedule 1(c)(12)).

(16) N-ethyl-3-piperidyl benzilate.

(17) N-methyl-3-piperidyl benzilate.

(18) Psilocybin.

(19) Psilocyn.

(20) Tetrahydrocannabinols. Synthetic equivalents of the substances contained in the plant, or in the resinous extractives of Cannabis, sp. and/or synthetic substances, derivatives, and their isomers with similar chemical structure and pharmacological activity such as the following: delta 1 cis or trans tetrahydrocannabinol, and their optical isomers; delta 6 cis or trans tetrahydrocannabinol, and their optical isomers; delta 3,4 cis or trans tetrahydrocannabinol, and its optical isomers.

Because nomenclature of these substances is not internationally standardized, compounds of these structures, regardless of numerical designation of atomic positions covered.

(21) Ethylamine analog of phencyclidine—Some trade or other names: N-ethyl-1-phenylcyclohexylamine, (1-phenylcyclohexyl) ethylamine, N-(1-phenylcyclohexyl) ethylamine, cyclohexamine, PCE.

(22) Pyrrolidine analog of phencyclidine—Some trade or other names: 1-(1-phenylcyclohexyl)-pyrrolidine, PCP, PHP.

(23) Thiophene analog of phencyclidine—Some trade or other names: 1-[1-(2 thienyl)-cyclohexyl]-piperidine, 2-thienyl analog of phencyclidine, TPCP, TCP.

(e) Depressants. Unless specifically excepted or unless listed in another schedule, any material, compound, mixture, or preparation that contains any quantity of the following substances having a depressant effect on the central nervous system, including its salts, isomers, and salts of isomers whenever the existence of those salts, isomers, and salts of isomers is possible within the specific chemical designation:

(1) Mecloqualone.

(2) Methaqualone.

(3) Gamma hydroxybutyric acid (also known by other names such as GHB; gamma hydroxy butyrate; 4-hydroxybutyrate; 4-hydroxybutanoic acid; sodium oxybate; sodium oxybutyrate), including its immediate precursors, isomers, esters, ethers, salts, and salts of isomers, esters, and ethers, including, but not limited to, gammabutyrolactone, for which an application has not been approved under Section 505 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 355).

(f) Unless specifically excepted or unless listed in another schedule, any material, compound, mixture, or preparation that contains any quantity of the following substances having a stimulant effect on the central nervous system, including its isomers:

(1) Cocaine base.

(2) Fenethylline, including its salts.

(3) N-Ethylamphetamine, including its salts.

SEC. 3.

 Section 11214 is added to the Health and Safety Code, to read:

11214.

 (a) The California Health and Human Services Agency shall convene a workgroup to study and make recommendations on the establishment of a framework governing the therapeutic use, including facilitated or supported use, as defined in paragraph (2) of subdivision (g) of Section 11350.1 and paragraph (2) of subdivision (g) of Section 11377.1, of mescaline, ibogaine, Dimethyltryptamine (DMT), and psilocyn or psilocybin.

(b) The Secretary of the California Health and Human Services Agency or their designee shall be the chairperson of the workgroup.

(c) The workgroup shall include, but not be limited to, all of the following:

(1) Persons with expertise in psychedelic therapy, medicine and public health, drug policy, harm reduction, and youth drug education.

(2) Law enforcement and emergency medical services or fire service first responders.

(3) People with experience with the traditional indigenous use of psychedelic substances, including representatives from the National Council of the Native American Church and Indian tribes in California.

(4) Veterans groups.

(5) University researchers with expertise in psychedelics.

(6) Research scientists with expertise in clinical studies and drug approval process under the federal Food and Drug Administration.

(7) Individuals from other states that have decriminalized psychedelics and established regulatory frameworks for the lawful use of psychedelics.

(d) The workgroup shall study subjects, including, but not limited to, all of the following:

(1) Research on the safety and efficacy of using each of the controlled substances specified in subdivision (a) in a therapeutic setting for treating post-traumatic stress disorder, depression, anxiety, addiction, and other mental health conditions.

(2) Long-term impact of supervised psychedelic or dissociative drug use with seeking and misusing other substances, including alcohol, cannabis, illicit substances, and unregulated psychedelic or dissociative drugs.

(3) Perceptions of harm of psychedelic or dissociative drugs following enactment of decriminalization both on a personal use and therapeutic use level.

(4) Impact of different regulatory frameworks on different health outcomes among vulnerable populations, including youth, people with substance use disorders, and minority or disenfranchised groups.

(5) Regulated use models for the controlled substances specified in subdivision (a) from other jurisdictions.

(6) Content and scope of educational campaigns that have proven effective in accurate public health approaches regarding use, effect, and risk reduction for the substances specified in subdivision (a), including, but not limited to, public service announcements, educational curricula, appropriate crisis response, and appropriate training for first responders and multiresponders, including law enforcement, emergency medical services, fire service, and unarmed coresponder units.

(7) Policies for minimizing use-related risks, including information related to appropriate use and impacts of detrimental substance use.

(8) Appropriate frameworks to govern the therapeutic use of controlled substances, including qualifications and training for therapists or facilitators.

(e) The workgroup shall develop policy recommendations regarding, but not limited to, all of the following:

(1) Development of a statewide program or programs for the training of individuals providing therapeutic psychedelic services in therapeutic settings, including facilitated and supported use settings.

(2) Development of a statewide credentialing process for individuals providing therapeutic psychedelic services in therapeutic settings, including facilitated or supported use settings.

(3) The content and scope of educational campaigns and accurate public health approaches regarding use, effect, risk reduction, and safety for the substances specified in subdivision (a).

(4) Policies for minimizing use-related risks, including information related to appropriate use and impacts of detrimental substance use.

(5) Policies for the regulation of controlled substances specified in subdivision (a), including responsible marketing, product safety, and cultural responsibility.

(6) Policies for the safe and equitable production, access, use, and delivery of the controlled substances specified in subdivision (a).

(f) Subsequent to the Legislature’s adoption of a framework governing therapeutic use of the substances described in subdivision (a), it is the intent of the Legislature that the transfer of a substance described in subdivision (a), without financial gain, in the context of therapeutic use, which includes facilitated or supported use, be decriminalized.

(g) As used in this section, “facilitated or supported use” means the supervised or assisted personal use of a substance described in subdivision (a) by an individual or group of persons 21 years of age or older, or the assisting or supervising of such persons in such use, within the context of spiritual guidance, community-based healing, or related services.

(h) (1) On or before January 1, 2025, the workgroup shall submit a report to the Legislature detailing its findings and recommendations.

(2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.

(i) This section shall remain in effect until January 1, 2026, and as of that date is repealed.

SEC. 4.

 Section 11350 of the Health and Safety Code is amended to read:

11350.

 (a) Except as otherwise provided in this division, every person who possesses (1) any controlled substance specified in subdivision (b), (c), (e), or paragraph (1) of subdivision (f) of Section 11054, specified in paragraph (15) or (20) of subdivision (d) of Section 11054, or specified in subdivision (b) or (c) of Section 11055, or specified in subdivision (h) of Section 11056, or (2) any controlled substance classified in Schedule III, IV, or V that is a narcotic drug, unless upon the written prescription of a physician, dentist, podiatrist, or veterinarian licensed to practice in this state, shall be punished by imprisonment in a county jail for not more than one year, except that such person shall instead be punished pursuant to subdivision (h) of Section 1170 of the Penal Code if that person has one or more prior convictions for an offense specified in clause (iv) of subparagraph (C) of paragraph (2) of subdivision (e) of Section 667 of the Penal Code or for an offense requiring registration pursuant to subdivision (c) of Section 290 of the Penal Code.

(b) Except as otherwise provided in this division, whenever a person who possesses any of the controlled substances specified in subdivision (a), the judge may, in addition to any punishment provided for pursuant to subdivision (a), assess against that person a fine not to exceed seventy dollars ($70) with proceeds of this fine to be used in accordance with Section 1463.23 of the Penal Code. The court shall, however, take into consideration the defendant’s ability to pay, and no defendant shall be denied probation because of their inability to pay the fine permitted under this subdivision.

(c) Except in unusual cases in which it would not serve the interest of justice to do so, whenever a court grants probation pursuant to a felony conviction under this section, in addition to any other conditions of probation that may be imposed, the following conditions of probation shall be ordered:

(1) For a first offense under this section, a fine of at least one thousand dollars ($1,000) or community service.

(2) For a second or subsequent offense under this section, a fine of at least two thousand dollars ($2,000) or community service.

(3) If a defendant does not have the ability to pay the minimum fines specified in paragraphs (1) and (2), community service shall be ordered in lieu of the fine.

(d) It is not unlawful for a person other than the prescription holder to possess a controlled substance described in subdivision (a) if both of the following apply:

(1) The possession of the controlled substance is at the direction or with the express authorization of the prescription holder.

(2) The sole intent of the possessor is to deliver the prescription to the prescription holder for its prescribed use or to discard the substance in a lawful manner.

(e) This section does not permit the use of a controlled substance by a person other than the prescription holder or permit the distribution or sale of a controlled substance that is otherwise inconsistent with the prescription.

SEC. 5.

 Section 11350.1 is added to the Health and Safety Code, to read:

11350.1.

 (a) Except as otherwise provided in subdivisions (b), (c), (d), and (e) of this section and notwithstanding any other law, all of the following shall be lawful for a natural person 21 years of age or older and shall not be a violation of state or local law:

(1) The possession, preparation, obtaining, or transportation, of no more than the allowable amount of mescaline, as described in paragraph (14) of subdivision (d) of Section 11054, for personal use.

(2) The ingesting of mescaline.

(3) The possession, planting, cultivating, harvesting, or preparation of plants capable of producing mescaline, except for the plant presently classified botanically as Lophophora williamsii Lemaire, on property owned or controlled by a person, for the purposes described in this subdivision by that person, and possession of any product produced by those plants.

(b) Possession of mescaline by a person 21 years of age or over on the grounds of any public or private elementary, vocational, junior high, or high school, during hours that the school is open for classes or school-related programs, or at any time when minors are using the facility is punishable as a misdemeanor.

(c) (1) A person who knowingly gives away or administers mescaline to a person who is under 18 years of age in violation of law shall be punished by imprisonment in a county jail for a period of not more than six months or by a fine of not more than five hundred dollars ($500), or by both that fine and imprisonment, or by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code.

(2) Notwithstanding paragraph (1), a person 18 years of age or over who knowingly gives away or administers mescaline to a minor under 14 years of age in violation of law shall be punished by imprisonment in the state prison for a period of three, five, or seven years.

(3) A person who knowingly gives away or administers mescaline to a person who is at least 18 years of age, but under 21 years of age is guilty of an infraction.

(d) Except as otherwise provided, possession of mescaline by a person under 18 years of age is punishable as an infraction and shall require:

(1) Upon a finding that a first offense has been committed, four hours of drug education or counseling and up to 10 hours of community service over a period not to exceed 60 days, commencing when the drug education or counseling services are made available to them.

(2) Upon a finding that a second offense or subsequent offense has been committed, six hours of drug education or counseling and up to 20 hours of community service over a period not to exceed 90 days, commencing when the drug education or counseling services are made available to them.

(e) Except as otherwise provided, possession of mescaline by a person at least 18 years of age but less than 21 years of age is punishable as an infraction.

(f) Mescaline or related products involved in any way with conduct deemed lawful by this section are not contraband nor subject to seizure, and no conduct deemed lawful by this section shall constitute the basis for detention, search, or arrest, or the basis for the seizure or forfeiture of assets.

(g) As used in this section, the following terms are defined as follows:

(1) “Allowable amount” means four grams per person. “Allowable amount” does not include the weight of any material of which the substance is a part or to which the substance is added, dissolved, held in solution, or suspended, or any ingredient or material combined with the substance as part of a preparation.

(2) “Financial gain” means the receipt of money or other valuable consideration in exchange for the item being transferred.

(3) “Mescaline” does not include synthetic analogs of mescaline, including derivatives of mescaline that are produced using chemical synthesis, chemical modification, or chemical conversion.

(4) “Personal use” means for the personal ingestion or other personal and noncommercial use by the person in possession.

(5) “Preparation” means processing or otherwise preparing for use.

(h) This section shall take effect on January 1, 2025.

SEC. 6.

 Section 11364 of the Health and Safety Code is amended to read:

11364.

 (a) It is unlawful to possess an opium pipe or any device, contrivance, instrument, or paraphernalia used for unlawfully injecting or smoking (1) a controlled substance specified in subdivision (b), (c), or (e) or paragraph (1) of subdivision (f) of Section 11054, specified in paragraph (15) or (20) of subdivision (d) of Section 11054, specified in subdivision (b) or (c) of Section 11055, or specified in paragraph (2) of subdivision (d) of Section 11055, or (2) a controlled substance that is a narcotic drug classified in Schedule III, IV, or V.

(b) This section shall not apply to hypodermic needles or syringes that have been containerized for safe disposal in a container that meets state and federal standards for disposal of sharps waste.

(c) Until January 1, 2026, as a public health measure intended to prevent the transmission of HIV, viral hepatitis, and other bloodborne diseases among persons who use syringes and hypodermic needles, and to prevent subsequent infection of sexual partners, newborn children, or other persons, this section shall not apply to the possession solely for personal use of hypodermic needles or syringes.

SEC. 7.

 Section 11364.7 of the Health and Safety Code is amended to read:

11364.7.

 (a) (1) Except as authorized by law, any person who delivers, furnishes, or transfers, possesses with intent to deliver, furnish, or transfer, or manufactures with the intent to deliver, furnish, or transfer, drug paraphernalia, knowing, or under circumstances where one reasonably should know, that it will be used to plant, propagate, cultivate, grow, harvest, compound, convert, produce, process, prepare, pack, repack, store, contain, conceal, inject, ingest, inhale, or otherwise introduce into the human body a controlled substance, except as provided in subdivision (b), in violation of this division, is guilty of a misdemeanor.

(2) A public entity, its agents, or employees shall not be subject to criminal prosecution for distribution of hypodermic needles or syringes or any materials deemed by a local or state health department to be necessary to prevent the spread of communicable diseases, or to prevent drug overdose, injury, or disability to participants in clean needle and syringe exchange projects authorized by the public entity pursuant to Chapter 18 (commencing with Section 121349) of Part 4 of Division 105.

(3) This subdivision does not apply to any paraphernalia that is intended to be used to plant, propagate, cultivate, grow, harvest, compound, convert, produce, process, prepare, pack, repack, store, contain, conceal, inject, ingest, inhale, or otherwise introduce into the human body, any of the following substances:

(A) Dimethyltryptamine (DMT).

(B) Mescaline.

(C) Psilocybin.

(D) Psilocyn.

(b) Except as authorized by law, any person who manufactures with intent to deliver, furnish, or transfer drug paraphernalia knowing, or under circumstances where one reasonably should know, that it will be used to plant, propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, process, prepare, test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale, or otherwise introduce into the human body cocaine, cocaine base, heroin, phencyclidine, or methamphetamine in violation of this division shall be punished by imprisonment in a county jail for not more than one year, or in the state prison.

(c) Except as authorized by law, any person, 18 years of age or over, who violates subdivision (a) by delivering, furnishing, or transferring drug paraphernalia to a person under 18 years of age who is at least three years younger, or who, upon the grounds of a public or private elementary, vocational, junior high, or high school, possesses a hypodermic needle, as defined in paragraph (7) of subdivision (a) of Section 11014.5, with the intent to deliver, furnish, or transfer the hypodermic needle, knowing, or under circumstances where one reasonably should know, that it will be used by a person under 18 years of age to inject into the human body a controlled substance, is guilty of a misdemeanor and shall be punished by imprisonment in a county jail for not more than one year, by a fine of not more than one thousand dollars ($1,000), or by both that imprisonment and fine.

(d) The violation, or the causing or the permitting of a violation, of subdivision (a), (b), or (c) by a holder of a business or liquor license issued by a city, county, or city and county, or by the State of California, and in the course of the licensee’s business shall be grounds for the revocation of that license.

(e) All drug paraphernalia defined in Section 11014.5 is subject to forfeiture and may be seized by any peace officer pursuant to Section 11471 unless its distribution has been authorized pursuant to subdivision (a).

(f) If any provision of this section or the application thereof to any person or circumstance is held invalid, it is the intent of the Legislature that the invalidity shall not affect other provisions or applications of this section that can be given effect without the invalid provision or application and to this end the provisions of this section are severable.

SEC. 8.

 Section 11365 of the Health and Safety Code is amended to read:

11365.

 (a) It is unlawful to visit or to be in any room or place where any controlled substances that are specified in subdivision (b), (c), or (e), or paragraph (1) of subdivision (f) of Section 11054, specified in paragraph (15) or (20) of subdivision (d) of Section 11054, or specified in subdivision (b) or (c) or paragraph (2) of subdivision (d) of Section 11055, or that are narcotic drugs classified in Schedule III, IV, or V, are being unlawfully smoked or used with knowledge that such activity is occurring.

(b)  This section shall apply only where the defendant aids, assists, or abets the perpetration of the unlawful smoking or use of a controlled substance specified in subdivision (a). This subdivision is declaratory of existing law as expressed in People v. Cressey (1970) 2 Cal. 3d 836.

SEC. 9.

 Section 11377 of the Health and Safety Code is amended to read:

11377.

 (a) Except as authorized by law and as otherwise provided in subdivision (b) or Section 11375, or in Article 7 (commencing with Section 4211) of Chapter 9 of Division 2 of the Business and Professions Code, every person who possesses any controlled substance that is (1) classified in Schedule III, IV, or V, and that is not a narcotic drug, (2) specified in subdivision (d) of Section 11054, except paragraphs (10), (11), (13), (14), (15), (18), (19), and (20) of subdivision (d), (3) specified in paragraph (11) of subdivision (c) of Section 11056, (4) specified in paragraph (2) or (3) of subdivision (f) of Section 11054, or (5) specified in subdivision (d), (e), or (f) of Section 11055, unless upon the prescription of a physician, dentist, podiatrist, or veterinarian, licensed to practice in this state, shall be punished by imprisonment in a county jail for a period of not more than one year, except that such person may instead be punished pursuant to subdivision (h) of Section 1170 of the Penal Code if that person has one or more prior convictions for an offense specified in clause (iv) of subparagraph (C) of paragraph (2) of subdivision (e) of Section 667 of the Penal Code or for an offense requiring registration pursuant to subdivision (c) of Section 290 of the Penal Code.

(b) The judge may assess a fine not to exceed seventy dollars ($70) against any person who violates subdivision (a), with the proceeds of this fine to be used in accordance with Section 1463.23 of the Penal Code. The court shall, however, take into consideration the defendant’s ability to pay, and no defendant shall be denied probation because of their inability to pay the fine permitted under this subdivision.

(c) It is not unlawful for a person other than the prescription holder to possess a controlled substance described in subdivision (a) if both of the following apply:

(1) The possession of the controlled substance is at the direction or with the express authorization of the prescription holder.

(2) The sole intent of the possessor is to deliver the prescription to the prescription holder for its prescribed use or to discard the substance in a lawful manner.

(d) This section does not permit the use of a controlled substance by a person other than the prescription holder or permit the distribution or sale of a controlled substance that is otherwise inconsistent with the prescription.

SEC. 10.

 Section 11377.1 is added to the Health and Safety Code, to read:

11377.1.

 (a) Except as otherwise provided in subdivisions (b), (c), (d), and (e) of this section, and notwithstanding any other law, all of the following shall be lawful for a natural person 21 years of age or older and shall not be a violation of state or local law:

(1) The possession, preparation, obtaining, or transportation, of no more than the allowable amount of any of the following substances for personal use:

(A) The controlled substance specified in paragraph (10) of subdivision (d) of Section 11054.

(B) The controlled substance specified in paragraph (18) of subdivision (d) of Section 11054.

(C) The controlled substance specified in paragraph (19) of subdivision (d) of Section 11054.

(D) Spores or mycelium capable of producing mushrooms or other material which contains the controlled substance specified in paragraph (18) or (19) of subdivision (d) of Section 11054.

(2) The ingesting of a substance described in paragraph (1).

(3) The possession, planting, cultivating, harvesting, or preparation of plants capable of producing a substance described in paragraph (1), on property owned or controlled by a person, for the uses described in this subdivision by that person, and possession of any product produced by those plants including spores or mycelium capable of producing mushrooms or other materials that contain a controlled substance specified in paragraph (18) or (19) of subdivision (d) of Section 11054, for that purpose.

(b) Possession of a controlled substance specified in paragraph (1) of subdivision (a) by a person 21 years of age or over, on the grounds of any public or private elementary, vocational, junior high, or high school, during hours that the school is open for classes or school-related programs, or at any time when minors are using the facility is punishable as a misdemeanor.

(c) (1) A person who knowingly gives away or administers a controlled substance specified in paragraph (1) of subdivision (a) to a person who is under 18 years of age in violation of law shall be punished by imprisonment in a county jail for a period of not more than six months or by a fine of not more than five hundred dollars ($500), or by both that fine and imprisonment, or by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code.

(2) Notwithstanding paragraph (1), a person 18 years of age or over who knowingly gives away or administers a substance described in paragraph (1) to a minor under 14 years of age in violation of law shall be punished by imprisonment in the state prison for a period of three, five, or seven years.

(3) A person who knowingly gives away or administers a substance described in paragraph (1) to a person who is at least 18 years of age, but under 21 years of age is guilty of an infraction.

(d) Except as otherwise provided, possession of a controlled substance specified in paragraph (1) of subdivision (a) by a person under 18 years of age is punishable as an infraction and shall require:

(1) Upon a finding that a first offense has been committed, four hours of drug education or counseling and up to 10 hours of community service over a period not to exceed 60 days, commencing when the drug education or counseling services are made available to them.

(2) Upon a finding that a second offense or subsequent offense has been committed, six hours of drug education or counseling and up to 20 hours of community service over a period not to exceed 90 days, commencing when the drug education or counseling services are made available to them.

(e) Except as otherwise provided, possession of a controlled substance specified in paragraph (1) of subdivision (a) by a person at least 18 years of age but less than 21 years of age is punishable as an infraction.

(f) A controlled substance described in this section or any related product involved in any way with conduct deemed lawful by this section are not contraband nor subject to seizure, and no conduct deemed lawful by this section shall constitute the basis for detention, search, or arrest, or the basis for the seizure or forfeiture of assets.

(g) As used in this section, the following terms are defined as follows:

(1) “Allowable amount” means the following quantities of a substance per person. “Allowable amount” does not include the weight of any material of which the substance is a part or to which the substance is added, dissolved, held in solution, or suspended, or any ingredient or material combined with the substance specified in this subdivision as part of a preparation:

(A) One gram of dimethyltryptamine, otherwise known as DMT.

(B) One gram of psilocybin or one ounce of a plant or fungi containing psilocybin.

(C) One gram of psilocyn or one ounce of a plant or fungi containing psilocyn.

(D) The amount of spores or mycelium capable of producing an allowable amount of a plant or fungi which contain a controlled substance specified in paragraph (18) or (19) of subdivision (d) of Section 11054.

(2) “Controlled substances” in this section does not include synthetic analogs of these substances, including derivatives of these substances that are produced using chemical synthesis, chemical modification, or chemical conversion.

(3) “Financial gain” means the receipt of money or other valuable consideration in exchange for the item being transferred.

(4) “Personal use” means for the personal ingestion or other personal and noncommercial use by the person in possession.

(5) “Preparation” means processing or otherwise preparing for use.

(h) This section shall take effect on January 1, 2025.

SEC. 11.

 Section 11379 of the Health and Safety Code is amended to read:

11379.

 (a) Except as otherwise provided in subdivision (b), in Section 11377.1, and in Article 7 (commencing with Section 4211) of Chapter 9 of Division 2 of the Business and Professions Code, every person who transports, imports into this state, sells, furnishes, administers, or gives away, or offers to transport, import into this state, sell, furnish, administer, or give away, or attempts to import into this state or transport any controlled substance that is (1) classified in Schedule III, IV, or V and that is not a narcotic drug, except subdivision (g) of Section 11056, (2) specified in subdivision (d) of Section 11054, except paragraphs (13), (14), (15), (20), (21), (22), and (23) of subdivision (d), (3) specified in paragraph (11) of subdivision (c) of Section 11056, (4) specified in paragraph (2) or (3) of subdivision (f) of Section 11054, or (5) specified in subdivision (d) or (e), except paragraph (3) of subdivision (e), or specified in subparagraph (A) of paragraph (1) of subdivision (f), of Section 11055, unless upon the prescription of a physician, dentist, podiatrist, or veterinarian, licensed to practice in this state, shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for a period of two, three, or four years.

(b) Notwithstanding the penalty provisions of subdivision (a), any person who transports any controlled substances specified in subdivision (a) within this state from one county to another noncontiguous county shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for three, six, or nine years.

(c) For purposes of this section, “transports” means to transport for sale.

(d) Nothing in this section is intended to preclude or limit prosecution under an aiding and abetting theory, accessory theory, or a conspiracy theory.

SEC. 12.

 Section 11382 of the Health and Safety Code is amended to read:

11382.

 Except as otherwise provided in Section 11377.1, every person who agrees, consents, or in any manner offers to unlawfully sell, furnish, transport, administer, or give any controlled substance that is (a) classified in Schedule III, IV, or V and that is not a narcotic drug, or (b) specified in subdivision (d) of Section 11054, except paragraphs (13), (14), (15), and (20) of subdivision (d), specified in paragraph (11) of subdivision (c) of Section 11056, or specified in subdivision (d), (e), or (f) of Section 11055, to any person, or offers, arranges, or negotiates to have that controlled substance unlawfully sold, delivered, transported, furnished, administered, or given to any person and then sells, delivers, furnishes, transports, administers, or gives, or offers, or arranges, or negotiates to have sold, delivered, transported, furnished, administered, or given to any person any other liquid, substance, or material in lieu of that controlled substance shall be punished by imprisonment in the county jail for not more than one year, or pursuant to subdivision (h) of Section 1170 of the Penal Code.

SEC. 13.

 Section 11550 of the Health and Safety Code is amended to read:

11550.

 (a) A person shall not use, or be under the influence of any controlled substance that is (1) specified in subdivision (b), (c), or (e), or paragraph (1) of subdivision (f) of Section 11054, specified in paragraph (15), (21), (22), or (23) of subdivision (d) of Section 11054, specified in subdivision (b) or (c) of Section 11055, or specified in paragraph (1) or (2) of subdivision (d) or in paragraph (3) of subdivision (e) of Section 11055, or (2) a narcotic drug classified in Schedule III, IV, or V, except when administered by or under the direction of a person licensed by the state to dispense, prescribe, or administer controlled substances. It shall be the burden of the defense to show that it comes within the exception. A person convicted of violating this subdivision is guilty of a misdemeanor and shall be sentenced to serve a term of not more than one year in a county jail. The court may also place a person convicted under this subdivision on probation for a period not to exceed five years.

(b) (1) A person who is convicted of violating subdivision (a) when the offense occurred within seven years of that person being convicted of two or more separate violations of that subdivision, and refuses to complete a licensed drug rehabilitation program offered by the court pursuant to subdivision (c), shall be punished by imprisonment in a county jail for not less than 180 days nor more than one year. In no event does the court have the power to absolve a person convicted of a violation of subdivision (a) who is punishable under this subdivision from the obligation of spending at least 180 days in confinement in a county jail unless there are no licensed drug rehabilitation programs reasonably available.

(2) For the purpose of this section, a drug rehabilitation program is not reasonably available unless the person is not required to pay more than the court determines that they are reasonably able to pay in order to participate in the program.

(c) (1) The court may, when it would be in the interest of justice, permit a person convicted of a violation of subdivision (a) punishable under subdivision (a) or (b) to complete a licensed drug rehabilitation program in lieu of part or all of the imprisonment in a county jail. As a condition of sentencing, the court may require the offender to pay all or a portion of the drug rehabilitation program.

(2) In order to alleviate jail overcrowding and to provide recidivist offenders with a reasonable opportunity to seek rehabilitation pursuant to this subdivision, counties are encouraged to include provisions to augment licensed drug rehabilitation programs in their substance abuse proposals and applications submitted to the state for federal and state drug abuse funds.

(d) In addition to any fine assessed under this section, the judge may assess a fine not to exceed seventy dollars ($70) against a person who violates this section, with the proceeds of this fine to be used in accordance with Section 1463.23 of the Penal Code. The court shall, however, take into consideration the defendant’s ability to pay, and a defendant shall not be denied probation because of their inability to pay the fine permitted under this subdivision.

(e) (1) Notwithstanding subdivisions (a) and (b) or any other law, a person who is unlawfully under the influence of cocaine, cocaine base, heroin, methamphetamine, or phencyclidine while in the immediate personal possession of a loaded, operable firearm is guilty of a public offense punishable by imprisonment in a county jail for not exceeding one year or in state prison.

(2) As used in this subdivision “immediate personal possession” includes, but is not limited to, the interior passenger compartment of a motor vehicle.

(f) Every person who violates subdivision (e) is punishable upon the second and each subsequent conviction by imprisonment in the state prison for two, three, or four years.

(g) This section does not prevent deferred entry of judgment or a defendant’s participation in a preguilty plea drug court program under Chapter 2.5 (commencing with Section 1000) of Title 6 of Part 2 of the Penal Code unless the person is charged with violating subdivision (b) or (c) of Section 243 of the Penal Code. A person charged with violating this section by being under the influence of any controlled substance that is specified in paragraph (21), (22), or (23) of subdivision (d) of Section 11054 or in paragraph (3) of subdivision (e) of Section 11055 and with violating either subdivision (b) or (c) of Section 243 of the Penal Code or with a violation of subdivision (e) shall be ineligible for deferred entry of judgment or a preguilty plea drug court program.

SEC. 14.

 Section 11999 of the Health and Safety Code is repealed.

SEC. 15.

 The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

SEC. 16.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

NORTHERN NIGHTS BRINGS BEATS AND HEAT TO REDWOODS

We headed north to the redwoods for the latest installment of the original cannabis-friendly music festival, Northern Nights.

The festival’s geography plays a significant role in its place in the history of cannabis progress. The venue, Cook’s Campground, sits in the heart of the Emerald Triangle stretching across the county line separating Mendocino and Humboldt. In addition to all the fine local cannabis, attendees spend their weekend enjoying up-and-coming EDM acts across numerous stages, and floating on the river.   

This past weekend we got the chance to sit down with many of Northern Nights’ co-founders as they celebrated the festival’s 10th anniversary, including Andrew Blap, Peter Huson, Matty “Worldfamous” Roberts and Emily Wilson. 

The festival has long been associated with legal cannabis sales after hosting the state’s first at music festival in the wake of Prop 64’s implementation. Following Northern Nights’ lead, major festivals around the country jumped on board with the idea, including EDC Las Vegas and Dirtybird Campout. In past years, those sales were confined to specific areas — last year even featuring two stageside dispensaries and a main cannabis activation area. This year the entire cannabis footprint was integrated into the heart of the festival, a short walk from the mainstage under the shade of the region’s massive trees.

We asked the Northern Nights team what it was like pushing that further integration this year.

“I think the big thing in working in two counties is first and foremost the context of where you are putting things,” Huson told L.A. Weekly. “When it comes to the history of cannabis events here, it’s the local jurisdiction, you have to start there. Mendocino passed their ordinance and we could bring a couple of dispensaries into Mendo.”

Courtesy of @y.s.a

But there was a lot of separation between those dispensaries. 

“And ultimately, I think the premise of boundaries, aka fencing, has been a big thing in terms of limiting the number of sales,” Huson said of the caged-in areas. “I think the different places that we were putting the dispensaries if you wanted to get them, for example, all the way out to the river, it’s a lot of overhead.” 

A big part for the team was making sure those local sponsors from the cannabis industry felt right. Huson notes there have been a few folks in the space doing these events for a while, but the brands taking part fund the progress to prove what can be done.

Courtesy of @anthonysvendsen

Matty Roberts added pushing boundaries is in line with the general ethos of the festival over the years. 

“We’re booking cutting-edge shit, which makes our lineups very eclectic. We pick all this cool music because we’re kind of in a sweet spot. We’re not a big event. We don’t have a ton of money behind us, so we have to get scrappy and find a lot of new stuff.”

Roberts laughed, noting people look at the old posters from over the decade and act like the performers back in the day were bigger, but they didn’t actually know who a lot of those now big-name acts were when Northern Nights booked them. 

“Now you look back, our lineup from eight years ago looks like a $2 million lineup,” Roberts said. 

Roberts spoke of coming from the Midwest where a stem on your shirt would land you in jail. He’s thrilled to help facilitate a good time for a younger generation that never has to know those horrors. 

Emily Wilson went on to speak that filling the void that Reggae on The River left in the hills is an honor.

“But there is a lot of responsibility as well. That means, we have to do the due diligence in finding new and up-and-coming music, working with local cannabis businesses and producers who have been working in the community a long time and supporting it through these transitions.”

@y.s.a

Wilson argued sometimes that means bringing in both the little guys and the big guys. She said that is a responsibility you can see they take seriously across the festival with not just cannabis but local wineries and breweries, too. 

“Every single facet that we can, and where we’re able, we want to support local and present the best that Northern California has to offer. We’ve got Humboldt Bay Oysters fresh from the docks,” Wilson said. 

One of the things Wilson said she enjoys the most is those people that have stuck with them since year one. Through all the trials and tribulations of being a small independent festival and the learning curve that came with it, they kept coming back, and that meant a lot to her.  

The actual cannabis section itself was really well done. As in years past, it provided a shady reprieve from the Northern California sun that hit 94 degrees Saturday in what felt like 1,000% humidity. One of my favorite parts of the festival was the morning sound bath in the cannabis zone. You would see people tiptoeing around all the people laid out, to get to the ATM for their weed money. Everyone was really respectful, but even then, the visual was hilarious. 

This year’s switch to delivery was a good move. While it took five minutes longer, it allowed for the entire Northern Nights cannabis experience to be more streamlined than had there been fences everywhere to facilitate a temporary retail site. 

The actual weed people were buying was no slouch. Some cannabis activations over the past couple of years have gotten a bit midsy. Sometimes you’d see these brands that can’t even get dispensary shelf space taking a lead at festivals — gross. Thankfully, Northern Nights did not have this problem. I would argue that The Lantz from Ridgeline Farms is the nicest weed for the price I’ve ever seen at any festival. Eighths were only $35! I bought seven over the weekend. 

Hopefully, other festivals trying to get into the cannabis game will take note of how well Northern Nights did it. 

Photos courtesy CAM

CAM SPREADS THE HEAT FARTHER SOUTH THAN EVER

We’re catching up with one of the biggest hitters in California, as she continues to spread her SoCal footprint, Anna Willey of CAM.

Willey is about as famed a female minority legacy operator as it gets. She got her start as a child on the underground NYC delivery scene. Eventually, she would open one of the most popular shops in Colorado. But she knew if she really wanted to crush it long-term, she’d have to move to California. After a short stint in the bay, she’d landed in Sacramento. From there, she coordinates CAM’s statewide growth.

She’s proud to be where she’s at, but you won’t hear her tooting her own horn much, as she surveys the devastation in the cannabis industry. 

“Well, I think that it’s a really, really hard time for legacy operators,” Willey told L.A. Weekly. “There’s so much pride in saying we’re going to bootstrap it and do it on our own.”

But it’s a different time. Running houses and small warehouses was dope. But to start partaking in the economy of scale as cannabis continues to grow, you’re going to be able to need to access funding. 

“When you’re talking to investors. I don’t think people have to mention that oh, by the way, you’ll be giving 62% away to the state, federal and local governments,” Willey said. “So I think that you kind of just got a warehouse and got to lease wherever you could. But you know, 4% tax, I mean, these are just huge. This is like what usual normal business it would make to survive.”

Willey with Hudson from Airfield Supply

But bootstrapping is possible with the heat. She pointed to No Till Kings and Fig Farms as great examples. She emphasized that all of these companies took some risks and owners figured out some parts of the businesses that they might have not been that great in, that sole person, and kind of built a team around people that are good as those parts of the business. 

Our conversation turned to the lack of middle ground in cannabis right now. Sometimes it feels like everyone is either crushing or closing. She believes there should have been a lot more room to be successful in the middle of the pack. 

“Yeah, maybe they’re not like knocking out of the park, but they’re doing what they love. They’re putting out a great product. They’re paying their people, they’re putting food on the table, and they’re doing it as a community,” Willey said, “It’s heartbreaking to watch that smaller farms maybe not have the opportunity to be around next year; it is really, really sad.”

There weren’t a lot of women in cannabis, and when Willey got started there weren’t a lot of brown people either, given the targeted enforcement they faced over cannabis. Especially in her hometown of NYC prior to legalization, just look at all the ACLU data from over the years.

But times have changed a lot. We asked Willey if she thought it was easier for a person like her to get in the game now than when she first did.

“I think that I think for women and for minorities or for anyone that I think it’s, I think it’s getting easier, and it’s getting better than it ever has been,” she replied. “I will say that there’s so much opportunity for people that want it. And I didn’t think it was that bad then either. So I think I’m always looking at it from the perspective of a kind of work ethic.”

Willey emphasized to farms that are struggling that whatever you can do to stay in business for another year is going to give you the best opportunity to win. She said you never know what’s right around the corner, just look how many people the COVID boom helped keep afloat. 

We asked Willey when she first got the chance to do business with women that looked like her.

“I would honestly say not until I came to California. In Colorado, it was my fellow peers, dudes. I think that there are a lot of home-growers in Colorado that kind of either cobble together a couple of bucks or did it with their friends and opened up a shop. It was a lot more peer-oriented than it is now,” Willey said. 

Keep an eye out for CAM flowers all over SoCal. It’s some of the best bang for the buck in the state and absolute heat. My favorite at the moment is the Biscotti BX1, but the Kush Mints has won a lot of stuff. 

THE DREADED REBRAND

Rebranding, whether it applies to products or individuals, poses a significant challenge within the cannabis industry.

As the California cannabis sector gradually emerges from the turmoil of recent years, those who contributed to its struggles seek to join the soon-thriving market. They endeavor to conceal their involvement in the previous failures.

The detrimental effects of rebranding permeate every aspect of the marketplace, extending beyond the legal domain.

The Ambition of the Shady Players in the Recreational Market

Individuals who exploited the industry until now, leaving behind the chaos we find ourselves in, are observing the end of the dark times as bulk prices creep up. They are now witnessing the resurgence of value as the post-pandemic price crash subsides. Who would have predicted that the cannabis industry, only three years later, would find itself in such a predicament after experiencing its most prosperous sales period? However, sales eventually began to decline, and numbers were down for years until we started our recent climb out of the hole. 

But back then, prices continued to plummet, with a market oversupply devastating pound prices. If a product made it to the shelves, one prayed that the dispensary could afford to pay the distributor. You would assume that partnering with major distributors would secure access to the most shelves—a safe bet, right? Nevertheless, we recently witnessed the demise of Herbl, causing a considerable loss of livelihoods. As the company was on the brink of collapse, more aware brands swiftly switched distributors, demanding payment for their products directly from retailers. Unfortunately, it seems that the rest are left empty-handed for now.

I spoke with an entrepreneur who faced the perfect storm caused by the collapse of Herbl. First, he claimed that he was charged an additional $30,000 due to discounts on products that were initially paid on delivery with cash. Furthermore, one of his tenants lost everything in the collapse and hasn’t paid rent for two months, struggling to stay afloat. Lastly, the entrepreneur is unable to obtain the products he needs for his shelves until new distributors pick them up or he figures out how to handle distribution himself. Both options are time-consuming.

It is disheartening to consider that those responsible for inflicting these hardships on so many people may evade accountability. While retailers bear some responsibility for not settling their debts, should we allow those who perpetuated an unsustainable system, which lacks bailouts like the banking industry, to absolve themselves of the sweat, money, and time lost in this ordeal?

Certainly, the blame does not lie with the young individuals manning the booths or attempting to sell the products. They had no say in how far the company would stretch itself before the disaster that unfolded this week. Perhaps only a few individuals bear true responsibility. Understanding each person’s role in that current cannabis tragedy is crucial.

Although Herbl stands out as a recent catastrophe, numerous other companies also mistreated people. Some caused harm inadvertently, while others acted out of misplaced self-belief. However, the most egregious offenders are schemers who are eager to reenter the market, while the other two likely bear some trauma from their actions. We must not allow them to return solely to line their pockets and inflict further damage.

However, the issue extends beyond distributors.

Questionable Retail Operators Sold Shelf Space to Busters

These individuals are the ones who secured shelf space at corporate dispensaries, thereby overshadowing small, high-quality businesses through the payment of slotting fees. It is possible that they initiated the concept of slotting fees completely eroded the notion of customers obtaining the best value for their money from location to location. Many of those who managed to secure such positions were unscrupulous individuals with extensive networks of like-minded opportunists. It was an arduous and lengthy process for smaller retailers to establish themselves, unless they held significant influence or connections.

These people who undermined the initial wave of corporate shops are desperate to regain entry before interstate markets open up. They recognize this as their next prime opportunity to latch onto someone else’s value. We must not permit the worst offenders to jeopardize the national rollout. 

City councils played a role in enabling these unscrupulous individuals to thrive while everyone else suffered, lining their own pockets. Consider the immense financial losses incurred by L.A. Equity Program applicants over the years, following the rules set by a city council that was only revealed to be racist through a secret recording. Politicians throughout the state have also contributed to the headaches faced by the cannabis industry. As the market stabilizes and normalizes, it is crucial that these individuals are held accountable indefinitely and prevented from rebranding. Once we forget that they were never on our side to begin with, we may inadvertently allow them to alter the rules.

As for the underground market, the rebranding problem is mostly just people renaming weed. It’s still shady, but less devastating.