MOUNTAIN MAN MELTS EMBRACES AI For those who have wondered where the crossroads of Artificial Intelligence and hash would meet, look no further than Mountain Man Melts’ latest flavors ahead of the 7/10 holiday. This popular hash company has taken a fun step into the realm of AI, leveraging its capabilities to create captivating labels…
MOUNTAIN MAN MELTS EMBRACES AI
For those who have wondered where the crossroads of Artificial Intelligence and hash would meet, look no further than Mountain Man Melts’ latest flavors ahead of the 7/10 holiday.
This popular hash company has taken a fun step into the realm of AI, leveraging its capabilities to create captivating labels and push the boundaries of creativity.
When some of Mountain Man’s usual design team found themselves swamped, taking longer than expected to deliver labels for new flavors, Joseph, Pat’s trusted right-hand man, came up with an intriguing idea—to harness the power of AI. They quickly realized the potential.
According to Pat, the founder of Mountain Man, the initial results were impressive. “It actually works pretty well,” he told L.A. Weekly, clearly pleased with the outcome. Mountain Man has always strived to differentiate itself with unique and eye-catching labels, and the AI collaboration allowed them to explore uncharted territory while maintaining their commitment to vibrant and rich colors.
Pat from Mountain Man Melts
Inspired by this newfound creative tool, Pat pitched the idea of a lemon wearing sunglasses in front of a rainbow to the AI. Within no time, they received four versions of the concept. While the initial iterations were generally on point, some adjustments were made to fine-tune the proportions to their liking. Eventually, they were able to seamlessly transfer the AI-generated images onto their product jars, giving each flavor its distinct visual identity.
However, the real test of the AI’s capabilities came when it was time to create a label for Pat’s favorite strain, Fatso. Known for its intense gas and funk, this strain posed a unique challenge for the Mountain Man team. They had to be clever in their approach, as they couldn’t simply ask the AI to depict a “fat kid being abducted by a UFO” due to its potentially insensitive nature. Instead, they described a child with similar proportions to Cartman from South Park. The AI delivered beyond their expectations, resulting in a label that Pat proudly slapped as one of his favorite flavor in the recent batches
The integration of AI in Mountain Man Melts’ creative process has proven to be a game-changer. In just a day, they were able to complete labels for four different new flavors, a task that would have taken considerably longer without AI assistance. They then entrusted the final designs to their skilled designer, who ensured that everything was laid out properly and formatted correctly.
“The homie still helps us, and then we just get it done a lot faster,” Pat shared, reflecting on the remarkable efficiency AI brings to their workflow. While the speed at which they achieve results feels almost like cheating, it undeniably benefits the company as they strive to keep up with the demands of its expanding customer base.
Mountain Man Melts is eager to continue exploring the possibilities of AI-generated art in their future flavors. As they enter the early stages of the summer light dep harvest, they anticipate incorporating even more AI-generated designs into their product lineup. The harvested cannabis material, carefully selected from the bountiful hills of The Emerald Triangle, will find its way into the freezers of Mountain Man Melts, where it will be transformed into exotic hash with the help of their expert team.
Pat expressed his admiration for the evolving capabilities of AI-based imaging tools, noting the freedom it provides to conceptualize ideas without being restricted by the cost of someone else’s time. Whether he desires artwork reminiscent of Van Gogh’s masterpieces or any other imaginative concept, AI enables him to explore uncharted creative territories.
As our conversation progressed, Pat couldn’t contain his excitement for the forthcoming 7/10 holiday—a date cherished by hash enthusiasts around the world. Often regarded as the headiest holiday on the cannabis calendar, 7/10 has become the pinnacle celebration for connoisseurs of hash. Pat personally favors 7/10 over the traditional April festivities, recognizing its growing significance within the cannabis community.
This year’s 7/10 holiday promises to be Mountain Man’s biggest celebration to date. The company has been steadily gaining more shelf space and expanding its presence across the state. Their willingness to put themselves out there, both through their exceptional products and personal interactions with potential customers, has played a significant role in their continued success. In an industry where traditional mainstream public relations channels are often unavailable to cannabis companies, personal interactions serve as critical touchpoints for establishing rapport and loyalty.
With the integration of AI, Mountain Man Melts has found an innovative way to captivate customers and push the boundaries of creativity within the cannabis industry. As they eagerly prepare for the 7/10 holiday, their dedication to producing the finest hash and engaging with their audience sets them apart, ensuring that Mountain Man remains at the forefront of this exciting and evolving industry.
SB-58 Controlled substances: decriminalization of certain hallucinogenic substances.
CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION
SENATE BILL
NO. 58
Introduced by Senator Wiener (Principal coauthor: Assembly Member Kalra) (Coauthors: Senators Becker, Bradford, Newman, Skinner, and Smallwood-Cuevas) (Coauthors: Assembly Members Bryan, Haney, Jackson, Lee, Low, Lowenthal, Rendon, Wicks, and Wilson)
December 16, 2022
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.
(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.
California’s quarterly cannabis tax revenue dipped $95 million from Q4 2021 compared to Q4 2022.
On Wednesday, The California Department of Tax and Fee Administration (CDTFA) reported cannabis revenue today for the fourth quarter of 2022 totaling $221.6 million; these numbers are always adjusted when the next quarter comes out. So we’ll have the final number in a few months, but regardless, the $108 million in excise tax collected and $113.6 million in sales tax revenue from cannabis businesses will be a monster dip from 2021.
When the final numbers for the last quarter of 2021 were released in 2022, the number climbed from $308 million to $316.59 million. That figure includes $160.64 million in excise tax, $39.99 million in cultivation tax, and $115.96 million in sales tax.
The $95 million in lost taxes represents a 30% dip in cannabis revenue for Q4 2022 compared to the same quarter a year prior. This revenue loss also is up from the $82 million loss in comparison of Q3 2021 to Q3 2022.
The quarter-to-quarter dip wasn’t as bad, but still pretty brutal. The numbers for Q3 2022 were revised to $251.3 million. This represents a $30 million dip in Q4. The revenue dip from Q4 2021 compared to Q3 2021 was $25 million. The dip in revenue this year was roughly 20% larger than in 2022.
Some would be quick to point to a halt in the cultivation tax for the loss, but lawmakers only expected to lose $150 million on that over three years. Sure they lowballed it, but there have to be other places the tax dip is coming from too.
We asked Kyle Greenhalgh of Heritage Mendocino if he felt like the dip in taxes was from brands going under.
“I think in general, people got broke in California and weren’t spending as much in the stores as they used to,” Greenhalgh told L.A. Weekly, “I know we still see the same amount of door swings, but a quarter of the spending of what it used to be. People were buying their needs, not their wants. So I think a bunch of dispensaries went to a value-driven model, but I see spending and higher quality bouncing back.”
Greenhalgh watched the shop’s average spend go from $100 to $20 really fast. He thinks people had to choose from buying gas at the gas station, or cannabis, and gas to get to work won that battle.
“This in turn made it very hard for most big corporations and brands to make a profit, and the exit started to happen. I’m seeing a lot of success and movement now for more of the smaller and craft brands though,” Greenhalgh noted.
“Overall, the dip in licensed cannabis tax revenues appears to be driven mostly by a small reduction of sales tax compared to the big hits to excise tax and the removal of the cultivation tax last year,” Katz told L.A. Weekly.
He notes the tax dip spread across the supply chain and unfortunately did not provide the level of direct relief for which cultivators had hoped for.
“Big picture I’d say that reduced sales are still primarily due to the high taxes levied on licensed products,” Katz argued. “As inflation has forced people to spend more and more on even the most basic of necessities, it becomes harder and harder for them to justify spending two or three times as much for licensed cannabis products. At the same time, there’s a significant amount of unregulated and untaxed cannabis retail throughout the state, offering product that looks ‘legal’ but costs a fraction of the price.”
Katz closed by noting, as long as the taxes remain high, most consumers who have less money in their pockets will be incentivized by their bottom lines to shop outside of the licensed market.
With annual surpluses coming to an end in 2022, the state will look to figure out how to replace that $95 Million.
Puffco released the Proxy Droplet today adding to its long line of killer accessories.
This time around, the Puffco team is dropping an accessory to go with their newest device, the Puffco Proxy.
One of the cool things about the proxy is the number of custom pieces we’ve seen glassblowers all over the world making for it. The stock version is essentially a dry hash piece with a really advanced atomizer. The Proxy’s tech in development was what the 3D chamber was originally based on.
But the dry rips weren’t for everyone. Puffco took note and developed a water piece attachment for the Proxy not too long after its initial release. The Bub accessory is a hybrid piece you can use with both the Proxy and dry flower, thanks to a bowl you can replace the proxy with. It’s a bit beefy and doesn’t feel as travel-friendly as some of Puffco’s other stuff.
The Droplet takes us from the more traditional water pipe shape to a more contemporary hash consumption device. It definitely looks like something you would smoke hash out of in 2023. We haven’t had the chance to hit it yet, but we’ve hit a lot of rigs that fancy bottle shapes. They’re rippers.
Puffco described Droplet as, “A premium percolated water filtration piece for the Puffco Proxy. As effective as it is elegant, the Proxy base inserts into the top of the Droplet to deliver cooler, smoother hits with an unforgettable rumble,” the announcement reads. “Droplet’s beautifully hand-blown borosilicate glass displays an ocean blue drop within a clear, gradient-frosted body. Its fluid design flows seamlessly between form and function, fitting comfortably in your hand and on any surface in your home.”
The Droplet does not come with the proxy base unit — you’ll have to grab one of those separately.
It’s easy to have faith in Puffco’s accessories after years of hits. Just look at the hot knife — lots of folks that don’t even rip electronic dabs still use those. That’s the kind of innovation that transcends their own devices. So when they come up with something new for their own hardware, it’s easy to see why people want to get their hands on it.
The things Puffco has come up with in the past to complement its devices have always been fun. Be it custom colors on the bases or glass, or having Ryan Fitt engineer a crazy recycler, they’ve always felt proper.
Now that Puffco has gone a bit more on the beefy side in regards to its first Proxy accessories, we’d like to see a water piece a bit more compact for the Proxy — not that the first two aren’t lovely.
Luke Scarmazzo was California’s most prominent medical cannabis operator serving federal time and he did so for nearly 15 years until his release on Feb. 3.
For those many years, Scarmazzo served as the face of the worst-case scenario for state’s medical cannabis operators. He was walking proof that even if you were operating in full compliance with state law, the feds could come to rip you away from your family at any moment.
There is a fair argument to be made that of the cannabis offenders released in recent years to much-deserved excitement, Scarmazzo was the most connected to the modern industry. Modesto, the home of the nonprofit California Healthcare Collective (CHC) for its year in operation, is now riding its own cannabis wave that hit the shore a bit later than coastal California. We even covered cannabis sales at the Modesto Reservoir during Dirtybird Campout.
After giving him some room to catch up with family and friends, we caught up with Scarmazzo last weekend.
The conversation would start with the fact he’d been the main face of California medical cannabis prisoners since the release of Eddy Lepp in 2016. But the two were on very different boats. Scarmazzo operated a nonprofit collective while Eddy grew some legendary “smell it from the highway” big crops. Eddy pushed the limits and many of his peers up north weren’t as surprised when he caught a case even though he was compliant with state law. Scarmazzo on the other hand represented a lot more people doing exactly what he was doing that didn’t want to end up in similar circumstances. As such, he’s had a lot of different people and organizations advocating for his release throughout his whole incarceration. With Eddy it was more of a cult hero support, but I can’t imagine most of those supporting Lepp thought they’d ever go as big as he did.
So with all that, when did Scarmazzo know this time it was real? The day he was released.
“I woke up, kind of just did the normal prison routine,” Scarmazzo told L.A. Weekly. “I gotta make coffee, getting ready to work out. And I just kind of go jump on the email to check the day’s emails.”
When he logged in there were significantly more emails in there than usual.
“So I knew something was up,” Scarmazzo said. “So I was like, OK, so I open it up. And the first email I see is from my attorney, and the subject line says, ‘you’re a free man.’ So I just stared at the computer for a few minutes.”
Things got a bit more obvious in 2017 that Scarmazzo was getting targeted for more time over his music career where he’d taken some shots at the feds in his lyrics. In January of that year, Scarmazzo’s co-defendant, Ricardo Montes, had his sentence commuted by President Obama on his way out the door. Scarmazzo, who also applied, wasn’t as lucky. And given the nature of how clemency works he never found out why, but to onlookers, it seemed pretty obvious.
The pair had worked on their clemency petitions in an informal clemency clinic in the prison library where Scarmazzo and Mission Green founder Weldon Angelos would help guys file their petitions and legal documents for free. Scarmazzo had wrapped his head around legal forms and paperwork over the first five years of his sentence on the hunt to find a way out. He was essentially offering up the skill set he’d built in that time to other prisoners free of charge.
“So we did this kind of clemency clinic, and then we, when it came to our turn to file, Weldon and I worked on both mine and Ricardo’s clemency petition,” Scarmazzo said. “They’re basically identical petitions. I mean, we were sitting together, and we were charged the same. We were both co-founders of CHC. So it was like, our conduct and all the circumstances of our case were pretty much the same.”
Scarmazzo noted the petitions were identical to the point all he had to do was swap out his name and personal information.
Scarmazzo would see Montes’ name among those granted clemency, but not his own. That was seemingly the point it felt the most personal.
“I knew something like this has to be something personal, I mean, this has to be an issue that’s directed directly at me, rather than us because the president obviously granted his and then called his sentence outdated and unjust. And I’m like, well, hello, my sentence is the same. So if you think this is outdated, adjust my findings, too.”
Scarmazzo reiterated he was happy to see Montes walk. The pair had been friends for many years before their ordeal. But he remembers one of the low points of the moment is having to explain the situation to his daughter.
“I was really happy to see him get out though,” Scarmazzo said. “He’s my brother. I’ve known Ricardo since we were kids. So, but you know, it was bittersweet. Like it was hard to kind of, I guess the hardest part was calling my family and my daughter and just telling them, hey it didn’t come through for us, but it came through for Ricardo. I want everybody to be happy for him.”
He knew regardless of his own circumstances, the moment had to be treated like it was a big win, because it was.
Most of the federal actions that followed what happened to Scarmazzo felt targeted. The last major federal action on a cannabis retailer operating in compliance with state law was 11 years ago during the Oaksterdam raids. Its founder, Richard Lee, bankrolled Proposition 19 in 2010 with legalization, only losing by a few points. The feds got their revenge on him a couple of years later.
One of the things Scarmazzo is most thankful for is the 29-page opinion the judge wrote when granting a five-year supervised release for the rest of his sentence. The long document articulates the changing of the times and other people will be able to use it as case law in their own quests for freedom.
The team at the nation’s oldest cannabis law reform group, The National Organization for The Reform of Marijuana Laws, was happy for what Scarmazzo’s freedom meant in the continued wave of cannabis prisoners getting out in recent years.
“I think it definitely sets a fantastic precedent that we’re starting to see federal judges reexamine the sentences that have been handed out by other judges, or sometimes even by themselves,” NORML Political Director Morgan Fox told L.A. Weekly. “When they start to look at changes of both state and federal policy and as well as the length of sentences that had been handed down for violations of federal infractions over the years since national attitudes have been changing.”
Fox noted there’s a lot of people out there that don’t have the connections and resources that might get lost in the shuffle here.
“And at the same time, there’s also just the opinion of one judge in one particular case,” Fox said. “It’s really going to take a change in federal law in order to start providing relief on a massive scale for not only people at the federal level, but people at the state level.”
California NORML called Scarmazzo the last known federal medical marijuana prisoner, following his release.
PSYCHEDELIC DECRIMINALIZATION BILL PASSES CA ASSEMBLY
The California State Assembly passed this year’s effort at psychedelic decriminalization, sending it off to a Senate that has already passed it previously for a final stamp before heading on to the Governor’s desk.
Things look good for psychedelic decrim in The Golden State. Senate Bill 58 would remove criminal penalties for the personal possession of certain naturally occurring psychedelics. The list includes psilocybin/psilocin, Dimethyltryptamine (“DMT”), and mescaline.
Peyote is excluded to prevent drug tourism from leading to its extinction in the wild. Indigenous users in California already have federal protections, so they don’t need to worry about it.
Before sending it back to the Senate after its 42-13 vote, the Assembly added amendments to establish a working group under the California Health and Human Services (CalHHS) Agency. It would be tasked with issuing a recommended framework governing the future therapeutic use of the substances specified in this bill. The working group would be mandated to issue that report laying out the plan by Jan. 1, 2025.
There would also need to be another bill that came out of that report that would officially implement whatever the guidelines and structure of everything are figured out.
“California’s veterans, first responders, and others struggling with PTSD, depression, and addiction deserve access to these promising plant medicines,” said Senator Scott Wiener, who continues to lead the effort. “SB 58 has prudent safeguards in place after we incorporated feedback from three years of deep engagement with a broad array of stakeholders. We know these substances are not addictive, and they show tremendous promise in treating many of the most intractable conditions driving our nation’s mental health crisis. It’s time to stop criminalizing people who use psychedelics for healing or personal well-being.”
After the victory, Weiner took to Instagram to thank the veterans and medical professionals who helped push the bill across the finish line in the Assembly.
“Every day that criminal penalties prevent veterans from accessing psychedelic plant medicines is a day their lives are at risk,” said Jesse Gould, veteran and founder of the Heroic Hearts Projects. “Psychedelics helped heal the unseen scars from my service in the War on Terror after traditional medicine failed me for years. Since then, I’ve dedicated my life to educating veterans in the safe and effective use of psychedelics. Removing criminal penalties for the use of these substances will help that work, not hurt it.”
Heroic Hearts connects veterans to psychedelic therapy for treating complex trauma and has become an international voice for veterans demanding effective mental health treatment options. Gould was originally cured of his PTSD during an ayahuasca retreat in the jungles of Peru. Quickly realizing its impact on his life, he founded Heroic Hearts in 2017 to help fellow veterans try to get the same level of personal healing he achieved in the jungle.
Other advocates were also excited about the potential relief for veterans. Currently, veteran suicide rates are 1.5 times that of the general public.
“I was against psychedelics until I was in a dark place, and the V.A. helped me through psychedelic research with my severe PTSD,” said Courtney Ellington, executive director of One Vet One Voice. “When we decriminalize psychedelics, we help those who are trying to help themselves. Psychedelic decriminalization equals street drug prevention, suicide prevention, and an opportunity to build a better community.”
In addition to Weiner, SB 58 is co-authored by Senator Josh Newman (D-Fullerton) and Assemblymembers Evan Low (D-Silicon Valley), Matt Haney (D-San Francisco), Isaac Bryan (D-Los Angeles), Lola Smallwood-Cuevas (D-Los Angeles), Alex Lee (D-Fremont), and Buffy Wicks (D-Oakland). Assemblymember Ash Kalra (D-San Jose) is a principal co-author.
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.
Photo: Pretty DrugThings/Unsplash