IRS Can Audit Cannabis Companies Under New Appeals Court Ruling

10/22/2020

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The U.S. 10th Circuit Court of Appeals has ruled that the Internal Revenue Service (IRS) has the authority to obtain financial records from Colorado cannabis companies, Colorado Politics reports.

In her opinion, U.S. District Judge Mary Beck Briscoe said the arguments brought by the plaintiffs challenging the IRS’s “ability to investigate and impose tax consequences” are “familiar” to the courts.

“The dispensaries have lost every time,” she said, adding that “the same result is warranted here.”

The Green Solution, a Denver-based firm that had been audited by the IRS for tax years 2013 and 2014, was a plaintiff in the case, along with Medicinal Oasis, LLC, Medicinal Wellness Center. The Green Solution lost a previous case in 2017 to prevent the audit.

Medicinal Oasis and Medicinal Wellness Center were under IRS audit for tax years 2014 through 2016. The firms had asked for immunity from federal drug prosecution before providing details about their businesses to the IRS, which was rejected. The businesses claimed the IRS was using the veil of the audit to uncover non-tax-related illegal dealings – which is prohibited under federal case law.

The government said that the IRS had “nothing to uncover” as the businesses openly – and legally in the state they operate – “sell marijuana to the public.”

“Medicinal Wellness Center promotes itself as ‘a full service marijuana superstore’ [and] Medicinal Oasis claims to have the ‘largest selection of cannabis in the world!’ If the Federal Government someday elected to pursue prosecution of petitioners under the Controlled Substances Act, a visit to their websites, stores, or superstores (as the case may be) would almost certainly provide an ample basis to begin an investigation.” – IRS attorneys in a legal brief, Speidell et al. vs USA

The IRS said The Green Solution and its pass-through businesses did not substantiate their tax information to the government’s satisfaction. The agency requested – and will now obtain – product tracking details from the Marijuana Enforcement Division and Marijuana Enforcement Tracking Reporting and Compliance (METRC), the seed-to-sale tracking system used in the state.

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More Cannabis Companies Targeted By Class-Action Suits

10/22/2020

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A growing number of cannabis businesses are being sued for violating the Federal Telephone Consumer Protection Act (TPCA) according to an investigation by Marijuana Business Daily. The report found at least 12 class-action lawsuits from around the country that alleged cannabis businesses spammed customers with deals and sales, starting in May 2018.

“These cases are often low-hanging fruit for litigious attorneys,” said Michael Sampson, a Pittsburg-based attorney, in the report. “Businesses should triple-check their marketing approaches.” Sampson also said such settlements can sometimes reach six figures and could bankrupt a fledgling cannabis business.

California-based attorney Mark Roth also warned cannabis companies to be careful.

“It’s the new ambulance chasing. If you don’t agree to pay a would-be plaintiff’s demand — which could be substantial — on the grounds that you had their consent to send them the text message at issue, they can still sue you anyway and you would be forced to defend the matter, which will cost more than the initial demand amount.“ — Roth, in an interview with MJBizDaily

Roth said that to avoid a potential lawsuit, it’s important to get written consent before businesses send any marketing materials to customers.

“Consent, consent, consent. Kind of like location, location, location,” he said. “That’s the holy grail, if you will, of protecting yourself from liability. If you have consumer consent … you’re fine. You’re bulletproof.”

The cannabis delivery service Eaze solutions was one of the first cannabis companies sued for “unsolicited” text messages in 2018, according to the report. A San Diego resident sued for $2000 per unsolicited text, but the case was later dismissed and sent to private arbitration. Some of the other cases uncovered by the investigation ranged from cultivation supply companies to dispensaries/retail stores in Colorado, California, and Washington.

A report in April by the global law firm Goodwin found that class-action suits against cannabis companies rose 116% from the years 2018-2019.

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USDA Approves Michigan Hemp Plan

10/22/2020

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The U.S. Department of Agriculture (USDA) has approved Michigan’s industrial hemp plan, which will go into effect on December 1. The state had been operating under a 2019 pilot program that licensed 631 cultivators and 517 processor-handlers this year.

Under the plan, growers will no longer be able to collect their own samples for analysis at Michigan Department of Agriculture and Rural Development (MDARD) laboratories. Instead, growers must contact the agency to schedule an appointment for agency staff to collect the samples. The hemp must be harvested within 15 days of the test results. The plan also includes specific methods for destroying crops that are determined to be non-compliant.

The rules require cultivators to provide a “legal description” of the property the hemp is grown on and provide that information to the USDA Farm Services Agency. Under the current rules, growers already had to provide an address, GPS coordinates, acreage and maps.

The pilot program requires all applicants to submit a criminal drug history, and the new rules require growers with any felony drug convictions outside of Michigan to submit a Federal Bureau of Investigation background check.

In a press release, Republican state Senator Dan Lauwers, who sponsored the Industrial Hemp Growers Act, called the state’s pilot program “a great success” and that “Michigan farmers will benefit greatly from being able to grow hemp under the 2018 Farm Bill and Michigan’s USDA approved Hemp Growers Program.”

The approval brings the total of USDA-approved state hemp plans to 29, along with approved plans for Puerto Rico and the U.S. Virgin Islands. According to the USDA website, 11 submitted plans remain under review, four states will operate under USDA rules, and three are continuing under their 2014 pilot programs.

Alaska is the only state listed as “drafting a plan” for USDA review, Colorado’s plan is “pending resubmission,” while Idaho has not submitted any hemp plan for the agency as it still has pending legislation to legalize the crop.

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Cannabliss Employees Become First in District to Unionize

10/22/2020

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Workers at Cannabliss last week became the first in the District to unionize, voting unanimously to ratify a collective bargaining agreement with United Food and Commercial Workers International (UFCW) Local 400.

Cannabliss is the only 100 percent Black-owned and operated dispensary in Washington, D.C. The five-year pact covers 13 staff.

Norbert Pickett, owner of DC Holistic Wellness, home of the Cannabliss dispensary, said in a statement that the union contract offers “employees greater pay, paid time off, and paid holidays, as well as retirement plans, additional accredited training and health care insurance.”

Additionally, the contract guarantees pay increases every six months in addition to an annual cost of living wage adjustment, paid time off for vacations, personal days, bereavement, and to vote, protection from unjust discipline or termination, and grievance procedures to resolve disputes with management. Healthcare benefits are provided through UFCW National Health and Welfare Fund.

The contract agreement with Cannabliss is part of a growing trend of cannabis industry workers voting to unionize. UFCW says it represents more than 10,000 industry employees nationwide.

Mark Federici, UFCW Local 400 president, said that in the “emerging” cannabis industry, “it is critical that we establish the highest possible job standard, with living wages and comprehensive benefits.”

“By taking this historic step, these workers have set a meaningful precedent for the cannabis industry in the District,” he said in a statement.

UCFW Local 400 represents 35,000 members working in the grocery, retail, health care, food processing, service and other industries in Maryland, Virginia, Washington, D.C., West Virginia, Ohio, Kentucky, and Tennessee.

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Trump Team Issues Cease-and-Desist to Stop Cannabis Advocates from Quoting Him

10/21/2020

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The group behind the medical cannabis ballot initiative in Mississippi has received a cease-and-desist letter from President Donald Trump’s re-election campaign claiming the activists deceptively used his image, name, or likeness in support for Initiative 65, WLBT reports.

In the letter, Michael S. Glassner, the chief strategist for the Trump campaign, said I65 mailers included “misleading communications,” adding that the president “has never expressed support” for the initiative. The mailers, sent by Mississippians for Compassionate Care, urge voters to “Join President Trump” and includes quotes from the president from 2015 and 2019 supporting medical cannabis and state decisions to legalize its use.

Mississippians for Compassionate Care Communications Director Jamie Grantham said the mailers are only sharing “the truth” about Trump’s supportive comments regarding medical cannabis reforms.

“The politicians and bureaucrats behind Mississippi Horizon clearly orchestrated this letter from the Trump campaign. It’s just the latest example of the lengths to which they will go to prevent any form of medical marijuana in Mississippi. President Trump himself has said he supports medical marijuana and is letting the states decide. Initiative 65 is the only plan on the ballot that will create an actual medical marijuana program in Mississippi.” – Grantham to WLBT

Mississippians will vote next month on two competing medical cannabis legalization measures – one created by activists and another put on the ballot by lawmakers. The activist-led proposal, a constitutional amendment, would create a more comprehensive program allowing 20 “debilitating conditions” to qualify for the program.

I65A would require lawmakers to enact a program that would only grant access for medical cannabis to terminally ill patients, require pharmaceutical-grade cannabis products, and leave tax rates, possession limits, and other details to the legislature.

A September poll from WLBT found 81 percent of likely voters support medical cannabis legalization in the state.

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Study: More Seniors Using Cannabis to Treat Common Ailments

10/21/2020

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A recent study published in the Journal of the American Geriatrics Society found that 61 percent of participants – all 65-and-older – started using cannabis after age 60 with 53 percent of the 568 surveyed saying they used cannabis on a daily or weekly basis.

The majority – 78 percent – said they used cannabis exclusively for medical purposes. Pain and arthritis were the most common conditions respondents were using cannabis to treat (73 percent), followed by sleep disturbance (29 percent), anxiety (24 percent), and depression (17 percent). About half of those surveyed obtain their cannabis in dispensaries, with lotions (35 percent), tinctures (35 percent), and smoking (30 percent) being the most common administration forms.

Nearly all (94 percent) of respondents said their family knows about their cannabis use, with about half saying their friends knew, but just 41 percent said their healthcare provider knew.

Kevin Yang, co-first author and third-year medical student at UC San Diego, indicated that the survey suggests more older users are willing to tell their physician about their cannabis use, “which reflects that cannabis use is no longer as stigmatized as it was previously.”

Dr. Alison Moore, senior author and chief of the Division of Geriatrics in the Department of Medicine at UC San Diego School of Medicine, said the study’s findings “demonstrate the need for the clinical workforce to become aware of cannabis use by seniors and to gain awareness of both the benefits and risks of cannabis use in their patient population.”

“Given the prevalence of use, it may be important to incorporate evidence-backed information about cannabis use into medical school and use screening questions about cannabis as a regular part of clinic visits.” – Moore in a statement

The authors conclude that “cannabis use by older adults is likely to increase due to medical need, favorable legalization, and attitudes.”

Patients surveyed in the study were seen at the Medicine for Seniors Clinic at UC San Diego Health over a period of 10 weeks.

A recent study by Israel’s Haifa University School of Public Health suggests that senior citizens who use medical cannabis to treat chronic pain show no signs of cognitive decline.

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Massachusetts Approves Expanded Cannabis Delivery Licensing

10/21/2020

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The Massachusetts Cannabis Control Commission on Tuesday approved regulations for expanded cannabis home delivery, the Boston Globe reports. The agency will allow “warehouse” delivery licenses – which will allow companies to buy from the wholesaler, resell online, and deliver to the customer – beginning next year.

Despite the objection of brick-and-mortar dispensaries, officials said the expansion would cut into the unregulated delivery market.

Social-equity applicants will have exclusive access to all delivery licenses for the first three years, which begins when the first delivery business is licensed. The state previously approved regulations for “courier” delivery permits which allow drivers to pick up orders from a dispensary and deliver them to a customer for a fee. However, the state has yet to issue any final licenses to the 37 companies that have received courier certification.

Commission chairman Steve Hoffman called the approval “a necessary, imperative step to create equity in this marketplace . . . and minimize the illicit market.”

David Torrisi, president of the Commonwealth Dispensary Association, told the Globe that his organization was “very disappointed” by the decision, adding that the group may consider legal action. Trade groups in Los Angeles, California recently sued the city over its plan to offer delivery licenses exclusively to social equity applicants until 2025.

“The public, municipalities, and legislators haven’t had enough time to digest this proposal, and I don’t think the commission has done enough analysis to determine the impact on the supply chain and the marketplace.” – Torrisi to the Globe

The commission also approved a ban on third-party cannabis delivery platforms from having a financial interest in more than one delivery licensee in an effort to prevent the monopolization of delivery services. They also banned the “ice cream truck” model, which prevents delivery drivers from having pre-loaded vehicles anticipating orders.

The “warehouse” rules include security provisions requiring two drivers in every delivery vehicle and preventing deliveries to towns that have banned adult-use cannabis businesses.

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Missouri’s First Medical Cannabis Dispensaries Now Open

10/21/2020

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Missouri’s first two dispensaries opened over the weekend, nearly two years after the state passed a constitutional amendment legalizing medical cannabis, the Associated Press reports. The dispensaries, located near St. Louis, are the first of 192 dispensaries that the Missouri Department of Health and Human Services intends to have open by the end of the year.

“Missouri patients have always been our North Star as we work to implement the state’s medical marijuana program. We greatly appreciate how hard everyone has worked so that patients can begin accessing a safe and well-regulated program.” — Dr. Randall Williams, director of the Department of Health and Human Services, via AP

Patients stood in long lines and paid up to $125 per eighth to purchase some of Missouri’s first legal medical cannabis products.

Kim Haller, a patient suffering from MS who had grown frustrated with her treatments — which included expensive medications and injections — told the AP, “It helps with my spasticity, which means my muscles don’t move like I like them to, and sleep.”

Missouri passed a full-plant medical cannabis constitutional amendment in 2018. After registering with the state, patients can purchase up to four ounces for a 30-day supply and can grow up to six plants at home. Two caregivers growing in the same space can have up to twelve clones, vegetative plants, and flowering plants. If one of those caregivers is a patient, an additional six plants in each category is allowed, according to Missouri patient FAQs.  

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US Attorney Promotes “Gateway Drug” Fears with Anti-Cannabis Editorial

10/20/2020

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In an op-ed published Monday, U.S. Attorney for the District of Montana Kurt Alme called on voters to “review” and “understand” the “serious ramifications” of the ballot initiative to legalize cannabis. The op-ed relies on old “Reefer Madness” tropes including gateway theory, addiction, and the unsubstantiated claims that legalization leads to a rise in traffic fatalities.

In interviews with Reuters, two former federal prosecutors said Alme’s decision to publish his opinion on a state ballot question weeks before the election was unusual.

William Nettles, the former U.S. Attorney for the District of South Carolina went so far as to call the move “an abuse of authority” and described it as “abnormal behavior” for a sitting state prosecutor.

Barbara McQuade, a former U.S. Attorney for the Eastern District of Michigan, described Alme’s decision to weigh in on the question as “highly unusual and improper.”

A spokeswoman for Alme’s office, Clair Johnson Howard, defended the prosecutor’s decision, telling Reuters that the op-ed “was intended to educate voters on an issue that significantly impacts the enforcement of federal criminal law and is a topic about which U.S. Attorney’s Offices have much information.” The op-ed does stop short of calling on voters to reject the proposal.

Alme’s op-ed also claims that cannabis use – specifically smoking – “can increase the risk of severe complications from COVID-19” despite several studies that have found THC and CBD could be used as tools in mitigating cytokine storms, a potentially fatal symptom of the disease.

Montana is one of five states voting on initiatives to legalize cannabis medically or recreationally this November. Cannabis remains outlawed federally, although U.S. attorneys do not enforce federal law in states that have passed legalization laws as long as the businesses comply with state statutes.

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Boy Who Became Face of Medical Cannabis in UK Gets His Medicine

10/20/2020

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The boy who became the figurehead of medical cannabis policy changes in the United Kingdom is set to receive his first bottle of cannabis-derived medicine on the two-year anniversary of the reforms, the Telegraph reports.

Billy Caldwell, now 15-years-old, suffers from epilepsy and has battled with the National Health Service (NHS) for two years to obtain the oil on a state-funded prescription. The fight included a legal battle in the Northern Irish High Court.

His treatment will be overseen by several physicians and is believed to be the first-of-its-kind in the nation to include THC. Other children approved for medical cannabis use in the UK receive CBD medicines.

His mother, Charlotte, said she received the news last week that a care plan had been drawn up for her approval.

“You can’t imagine how relieved I am to have received this confirmation after all these years of campaigning. I am incredibly grateful to the health authorities in Northern Ireland who have worked with Billy’s treating clinician and prescriber, his GP and the pediatric neurology team at Great Ormond Street Hospital to develop and approve this plan.” – Caldwell to the Telegraph

In July, the NHS indicated plans to manufacture medical cannabis products itself and that it had reviewed a clinical trial design for its potential use as a treatment for epilepsy, according to the Telegraph. In August, the agency announced a trial of the Medipen, a CBD vaporizer.

Last year, the NHS approved cannabis-derived pharmaceuticals Sativex and Epidiolex for use through the service.

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LA Sued for Prioritizing Social Equity Licensees for Cannabis Delivery

10/20/2020

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Los Angeles, California and the Department of Cannabis Regulation are being sued over plans to issue stand-alone cannabis delivery licenses exclusively to social-equity applicants until 2025, the Associated Press reports. The lawsuit does not seek to limit such applicants to obtain licenses but wants all businesses the equal opportunity to apply.

The lawsuit was filed by cannabis firm Ganja Goddess, and trade groups Southern California Coalition and the California Cannabis Couriers Association. Ganja Goddess CEO Zachary Pitts described the regulations – which were revised in July – as a “death blow.”

The July regulation revisions came in response to a lawsuit against the city by the Social Equity Owners and Workers Assn. That deal saw the city agree to bolster its social equity program if the trade organization dropped its lawsuit.

Under the initial rules – scrapped under the reforms – Los Angeles was required by law to issue 20 licenses under a delivery pilot program. The lawsuit alleges that the plaintiffs’ rights were violated by “unreasonable delay and poor handling of the licensing process, followed by a change in the law,” according to the report.

Under Los Angeles’ adopted social equity rules, the city replaced its first-come, first-served system in favor of a lottery system, and narrowed the ZIP codes eligible for social equity licensing relief in the city after it was discovered that some wealthier, affluent, white neighborhoods were included among the list of ZIP codes eligible for the program. Licensing officials now use police reporting districts which officials say better target the communities most affected by the drug war for the licenses.

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Michael Thompson, Cannabis Prisoner Serving 40-60 Years, Gets November Parole Hearing

10/20/2020

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69-year-old Michael Thompson, who in 1994 was sentenced to 40-60 years in prison for nonviolent cannabis crimes, will receive a public hearing from the Michigan Parole Board on November 17.

His parole efforts are supported by the state attorney general, local prosecutors, politicians, and over 125,000 people who signed a petition calling for his release.

Thompson, who has already served 25 years of his sentence, was originally arrested and jailed for the sale of three pounds of cannabis. When police raided his home, however, they found firearms, which resulted in a significantly lengthier prison sentence.

During his incarceration, Thompson’s mother, father, and only son have passed away. His mother’s last wish was that he would not die in prison. Thompson, who has diabetes, was hospitalized in August with a COVID-19 diagnosis.

“Given the health risks Michael is facing as a 69-year-old with pre-existing conditions recovering from COVID-19, we hope the parole board and the Governor’s office will act as expeditiously as possible to release Michael. However, we are heartened that the process is moving forward with the scheduling of a public hearing, the last procedural hurdle before the Governor can grant clemency.” — Sarah Gersten, Executive Director & General Counsel for the Last Prisoner Project

Michigan Gov. Gretchen Whitmer (D) has stated she supports cannabis reforms and recently signed into law a bill to automatically expunge cannabis convictions that would no longer be considered illegal under the state’s cannabis legalization policies.

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Virginia’s First Medical Cannabis Dispensary Now Open

10/20/2020

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Virginia’s first full plant medical cannabis processor has opened in Bristol. Dharma Pharmaceuticals is one of four medical cannabis processors allowed to open across the state. Dharma opened to provide both high CBD and high THC oil-based products. Three other processors are expected to open in Portsmouth, Richmond, and Manassas.

Lisa Smith, who lobbied for the new law, drove from Richmond to purchase the first dose for her daughter Haley, who suffers from the intractable seizure disorder Dravet Syndrome.

“There’s been so many people on this journey, it’s kind of surreal that it’s happening.” — Lisa Smith, via WJHL

Virginia was recently the 27th state to decriminalize up to an ounce of cannabis, and now is the 34th state to implement a full-plant medical cannabis system.

In Virginia, any diagnosed condition will qualify a patient for medical cannabis with a “practitioner’s signature.” Once certified, patients must register with the Virginia Board of Pharmacy to access medical cannabis from processors like Dharma Pharmaceuticals. Individual doses are limited to ten milligrams and flower is not allowed. Virginia is the latest state to pass medical cannabis rules but not allow for home cultivation. 

In September, Virginia lawmakers advanced legislation to expunge cannabis criminal offenses that have been since been overruled or otherwise dismissed, such as under the state’s decriminalization law.

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Sean Worsley, Purple Heart Vet Jailed in Alabama, Released on Parole

10/19/2020

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The Alabama Board of Pardons and Paroles on Wednesday released Sean Worsley, the disabled, Black, veteran who had been jailed for eight months for possessing legally-obtained medical cannabis, according to the Alabama Political Reporter.

Worsley served in the Iraq War and received a Purple Heart but was also diagnosed with post-traumatic stress disorder and declared 100 percent disabled by the Department of Veterans Affairs. He had received a medical cannabis recommendation for PTSD from his home state of Arizona.

In a statement, his wife Eboni said the couple is “grateful to be able to pick up the pieces and begin rebuilding” their lives. She expressed gratitude toward the Parole Board “for showing the public the heart of the warm welcoming spirit of the people” she’s met since moving to the state.

“My faith in THE MOST HIGH has been further solidified in the demonstration of the law functioning in Alabama to help and not harm individuals via the parole board.” – Eboni Worsley, in a statement, via the Political Reporter

Chey Lindsey Garrigan, executive director of the Alabama Cannabis Industry Association, called the “compassion” shown by the board “a commendable act that should be acknowledged.”

Worsley was arrested in 2016 for cannabis possession in Gordo after an officer approached he and his wife while they were getting gas claiming their music was too loud. Eboni complied but the officer claimed he smelled cannabis, searched the car, and found medical cannabis obtained through New Mexico’s program.

In 2017, as part of a plea deal, Worsley agreed to five years of probation, including drug treatment, but claims that the VA would not let him access their drug treatment program because he doesn’t have a drug problem.

The district attorney’s office in Alabama said Worsley was kicked out of the VA program for failure to comply and ordered him to appear in Pickens County court. Worsley claims that he did not know about the court date and was subsequently charged with failure to appear, which led to his probation to be revoked and being declared a fugitive from justice.

Worsley was then arrested in Arizona for possession of cannabis with an expired medical cannabis ID card and extradited to Alabama where, earlier this month, a judge upheld his five-year prison sentence.

Democratic State Rep. Neil Rafferty, a post-9/11 veteran who advocated for Worsley’s release, said news of his parole “is welcomed and to be celebrated.”

“The case of Sean Worsley deals with a convergence of several issues. It deals with Alabama’s harmful marijuana laws, particularly concerning medical marijuana,” Rafferty told the Political Reporter. “It deals with our country’s misunderstanding and treatment of veterans returning home and transitioning to civilian life. And it deals with excessive policing – that put suspicion on a man doing nothing more than listening to the radio and playing air guitar to his wife.”

Advocates had been calling for Worsley’s release since last summer.

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Explosion at New Mexico Cannabis Plant Leaves Two Workers Critically Injured

10/19/2020

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An explosion at New Mexicann Natural Medicine on Thursday left two workers in critical condition, the Albuquerque Journal reports. It is the second explosion that caused injuries at the plant in the last five years.

The Department of Health told the Journal that the explosion occurred in the immediate vicinity of the company’s chemical extraction equipment, but the exact cause was still under investigation. DOH spokesman David Morgan said the agency immediately issued a notice of suspension to New Mexicann, revoking their manufacturing approvals. The notice, issued to New Mexicann Executive Director Carlos Gonzales, specifically references “compressed gas” extractions.

According to the report, the accident is being investigated by New Mexico and Santa Fe fire officials, the DOH, and the federal Occupational Safety and Health Administration (OSHA). Officials said two male employees suffered from burns on their heads and torsos and were transported by air ambulance to the hospital.

Gonzales did not comment on the accident.

A previous explosion at the plant in 2015 severely burned two employees involved in the extraction process. Following that incident, OSHA cited the company for 12 “serious” health and safety violations and fined it $13,500. The state Occupational Safety and Health Bureau (OSHB) cited the company for seven serious violations and levied a $7,250 fine for that accident, according to NM Political Report.

The OSHB violations related to the 2015 explosion state that New Mexicann failed to provide a work environment “free from recognized hazards that were causing or likely to cause death or serious physical harm to employees” and workers “were exposed to being caught in an explosive atmosphere.” The violation also said the equipment was not designed for use with the “cannabinoid extraction process,” according to the Political Report.

The company has five locations throughout the state, including another in Santa Fe, Española, Las Vegas, and Taos.

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West Virginia Licenses Mainly Out-of-State Firms for Medical Cannabis Cultivation

10/19/2020

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West Virginia officials have awarded 10 medical cannabis cultivation licenses more than three years after the state legalized medical cannabis, the Inter-Mountain reports. However, most of the licenses were issued to companies that are either based, or have principal offices and company officers in, other states.

The companies selected include:

  • Armory Pharmaceutical Inc.
  • Blue Ridge Botanicals Ltd.
  • Buckhannon Grow LLC
  • Columbia Care WV LLC
  • Harvest Care Medical LLC
  • Holistic WV Farms I LLC
  • Mountaineer Holding LLC
  • Mountaineer Integrated Care Inc.
  • Tariff Labs LLC
  • Verano LLC

Jason Frame, Office of Medical Cannabis director, called the license awards “a big step” in the process, adding that the state used a Scoring Review Team to make recommendations for licenses. That team, Frame said, was not required to give preference to West Virginia-based businesses. He indicated that four of the 10 chosen firms are “majority-owned” by West Virginians.

“We thought we had a well-rounded scoring team based again on their backgrounds. They were very diverse in that group. They looked at things, like the operational plans that the facility submitted, their security plans, plans to prevent diversion, which of course is our primary mission with the Office Medical Cannabis, and also the background and education on the folks that will be working there also.” – Frame to the Inter-Mountain

Of the denied businesses – 32 in all – 13 had principal offices in the state with residents as managers and directors; five included a mix of West Virginians and out-of-state interests, the report says.

Mike Weaver, owner of Redbud Hill Naturals LLC, which was denied a license, said he spent $250,000 trying to secure a license, which wiped out his retirement savings.

As part of the application process, cultivation applicants had to pay a nonrefundable application fee of $5,000, a $50,000 permit fee, and were required to have a minimum of $2 million in assets, with $500,000 in cash in deposit at a bank to be considered.

“If I can use what I had to try to help other folks – not only with the medical cannabis itself, but to create all these jobs here in our area – I was willing to stick my neck out and do that. And this is what I get out of it?” he said in an interview with Inter-Mountain, adding that the application reviewers “should have been given a priority” for in-state applicants.

The state’s law only allows medical cannabis products in pill, oil, topical, or vaporized products. In June, officials said medical cannabis sales were still two to three years away.

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Study: Cannabis May Help Patients with OCD Symptoms

10/16/2020

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A study published in the Journal of Affective Disorders found a reduction in obsessive-compulsive disorder (OCD) symptoms following inhaled cannabis use. The researchers analyzed data from 87 individuals who self-identified with OCD and tracked their compulsions, intrusions, and/or anxiety immediately before and after 1,810 cannabis use sessions over 31 months.

The Washington State University researchers found patients reported a 60 percent reduction in compulsions, a 49 percent decrease in intrusions, and a 52 percent drop in anxiety from before to after cannabis use. The researchers note that there was no placebo group.

“Higher concentrations of CBD and higher doses predicted larger reductions in compulsions. The number of cannabis use sessions across time predicted changes in intrusions, such that later cannabis use sessions were associated with smaller reductions in intrusions. Baseline symptom severity and dose remained fairly constant over time.” – “Acute Effects of Cannabis on Symptoms of Obsessive-Compulsive Disorder,” Journal of Affective Disorders, Oct. 6, 2020

In a statement, NORML Deputy Director Paul Armentano said that there have been few studies assessing the “potential efficacy of cannabis for the mitigation of symptoms of OCD.”

“As such, these findings, though somewhat limited by the study’s design, indicate that cannabis – and, in particular, varieties high in CBD – holds promise as a therapeutic option for OCD patients and should be furthered examined in more rigorously designed controlled setting,” he said.

A study published in May in the journal Depression and Anxiety – the first-ever placebo-controlled study analyzing cannabis use in adults with OCD – included 12 participants and concluded that while self-reported OCD symptoms and anxiety were reduced by cannabis use, it ultimately “has little acute impact on OCD symptoms and yields smaller reductions in anxiety compared to placebo.”

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Cannabis Firms Consider IPOs Anticipating a Biden Presidency

10/16/2020

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Several cannabis and hemp companies are planning initial public offerings in a bet that Democratic candidate Joe Biden will win next month’s election, Reuters reports. Representatives from Flora Growth, Gage Cannabis, BioMedican, and Vertical Wellness each indicated plans to go public next year, in part, due to the growing possibility of a Biden win in November.

The report notes that following the September 29 presidential debate, stock in cannabis companies with US operations, including Curaleaf Holdings, Cresco Labs Ltd, and Green Thumb Industries Inc, rose more than 20 percent. A post-debate FiveThirtyEight analysis suggests that Biden received a slight bump in the polls following the debate, while Republican President Donald Trump’s rating dipped slightly.

Flora Growth CEO Damian Lopez said he believes the election “will be a huge catalyst” for U.S. cannabis industry growth, adding that “regardless of who wins, more and more states are showing their support for cannabis.”

Polls also show Democrats have a strong chance at taking control over the Republican-led Senate, which would replace Majority Leader Mitch McConnell who has blocked cannabis-related legislation from reaching the floor for a vote. Last year, the Democrat-controlled House approved the SAFE Banking Act – the first time Congress had considered stand-alone cannabis-related legislation but it has not been introduced to the full Senate. The House had also scheduled a vote on the MORE Act, which would remove cannabis from the Controlled Substances Act, but that vote was delayed as lawmakers turned their attention to coronavirus relief.

Michael Underhill, chief investment officer at Capital Innovations, told Reuters that Congress would need to pass bills reforming cannabis law and normalizing the industry in order to put US cannabis firms on the same regulatory plane as their Canadian counterparts. However, he said, Biden’s recent rise in the polls is “a dramatic change in expectations from three months ago, when it appeared Donald Trump would most likely win re-election.”

Biden, along with his running mate Sen. Kamala Harris – California’s former attorney general – have expressed support for cannabis law reforms. Last month, Harris said a Biden Administration would pursue decriminalization policies – which she reiterated during the vice presidential debate last week. In February, Biden said that cannabis is “at the point where it has to be, basically, legalized” but his platform does not include outright legalization.

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Washington Social Equity Program Off to a Bumpy Start

10/16/2020

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During the 2020 legislative session, the Washington State legislature passed HB 2870, making Washington the latest state behind Massachusetts, Illinois, and California to endeavor to create social equity provisions for the cannabis industry. The legislation was inspired by cannabis social equity movements from around the country and seeks to rectify the devastating effects that the “war on drugs” has had on communities of color, particularly African Americans.

Unfortunately, like other states, Washington is finding it difficult to dismantle institutional racism with the cannabis plant.

The social equity task force

Under the new law, Washington must establish a “Social Equity in Cannabis Task Force” (SECTF), which will make recommendations to the governor, before the state can implement any social equity provisions.

Slightly delayed by the coronavirus — Gov. Jay Inslee announced the SECTF members in July — the task force will hold their first public meeting on October 26, 2020. The task force is made up of members of the Washington State House and Senate, members of African American, Latin and Native American Communities, cannabis retail licensees, and representatives from several executive branch agencies, including the Department of Commerce who will oversee a 1.1 million dollar program designed to assist applicants in attaining a retail cannabis license.

According to government sources, the task force’s goal will be to, “…make recommendations to promote business ownership among individuals who have resided in disproportionately impacted areas of high poverty, to remedy the harms resulting from the enforcement of cannabis-related laws. The Task Force will work to center the voices of those who belong to communities that have been most impacted by enforcement of cannabis-related laws.” 

Although the COVID-19 crisis has delayed the task force meeting, the LCB recently held three (down from the initially proposed five) virtual “community meetings” in order to explain regulators’ role in the social equity program and to hear from individuals looking to obtain a social equity license. Scheduled for late September and early October, the three meetings highlighted current regulations and LCB responsibilities. At the second meeting, some attendees expressed concerns about the SECTF.

Aaron Barfield, founder of Black Excellence in Cannabis said in an email after the meeting, “The task force has no authority, only the power to make recommendations to the LCB. The LCB pushed forward the legislation that created the task force because it allows them to appear to be working on solving the problem they created without significantly changing the status quo.”

“There is serious concern that the social equity licenses will not go to the industry pioneers who have been fighting for inclusion, but to rewarding opportunists who supported the LCB legislation.” — Aaron Barfield, founder of Black Excellence in Cannabis, in an email

The dismantled medical cannabis system

Other concerns center on the narrow applicant criteria. According to LCB officials at the community meeting, “applicants must live in a disproportionately affected area” —  a term yet to be defined by the SECTF — or an applicant or an applicant’s family member must have been arrested for a cannabis crime.

At the community meeting, Barfield and other applicants said they already had successful cannabis businesses prior to 2015 but have been left out of the new system. One applicant at the meeting, who went by “Sammy,” said, “The LCB should fix the problems they have already created before starting a new program.” 

Barfield agrees. “The licensing issue has been extremely stressful and financially disastrous for many Blacks,” he said. “We went from running successful enterprises as medical cannabis providers to having our businesses hijacked and being told we had to run through an LCB obstacle course to get them back. An obstacle course that the LCB made impossible for us.” 

Barfield is referring to the 2015 merger of Washington’s state’s longstanding medical cannabis program and the adult-use cannabis system created under the state’s successful legalization initiative I-502. At the end of that process, the LCB withdrew nearly two thousand retail cannabis licenses. Several attendees at the meeting said many of these applicants were members of communities of color.

“Ultimately, we’d like to see cannabis taken out of the hands of the LCB as they’ve destroyed their credibility and proven incapable of regulating in an honest and fair manner. Cannabis should be regulated by the Dept of Health and the Dept of Agriculture and licenses should be much more widely available.”

Lacking producer/processor considerations

Others at the “community meeting” were concerned the new program only addresses retailers, not producers or processors. Dr. Darlene J. Conley Ph.D., a Black Tier 1 producer in Tacoma, WA who is still fighting to open her cannabis business, said at the meeting that, “Many African Americans have experience in growing and processing cannabis, not only retail.” In a communication after the meeting, Dr. Conley said she doesn’t think adding producers and processors to the social equity program would affect current licensees as many are only small producers like hers. She believes the LCB, similar to the retail social equity program, could make licenses available that were either revoked or never used.

In a letter to Gov. Inslee commenting on HB 2870, Dr. Conley explained why she believes communities of color were left out of the process. 

“Many African Americans and LatinX developed highly specialized skills learning to grow marijuana, but were not able to enter the legal market because of a number of factors linked to institutionalized racism in the economic and criminal justice system. Virtually all of the top growers and processors in the industry learned their craft when marijuana was illegal. However, because African Americans were disproportionately targeted for surveillance and arrest in their communities, they were ineligible to apply for licenses once the industry was legalized.” — Dr. Darlene J. Conley, in a letter to Gov. Inslee

Multiple studies corroborate Dr. Conley’s statement, including a study by the Multnomah County Health Department in Portland and the Oregon Public Health Division. The study published in “Substance Use & Misuse” in 2019 looked at cannabis arrests between 2012 (legalization) and 2015, showing that overall cannabis arrests have gone down in Washington for both Black people and white people since legalization. However, since the retail market opened in 2014, cannabis arrest rates for African Americans have doubled and African Americans went from being arrested 2.5 times more than their white counterparts to being arrested 5 times more.

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Why Choose Cannabis with High THC Content?

10/16/2020

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If you’re hoping to experience the psychoactive effects of cannabis, then THC-rich cannabis is the smart choice for you. THC, or tetrahydrocannabinol, is the primary cannabinoid that makes people feel high after consuming cannabis. The chemical is metabolized and enters your bloodstream, binding to cannabinoid receptors in your brain and Central Nervous System to produce a euphoric effect. In some ways, THC is considered the plant-based equivalent of the neurotransmitter called anandamide, which impacts feelings of bliss, memory, pain, appetite, and more.

Why do people want high THC content?

Many cannabis patients use THC-rich cannabis for its positive medicinal effects. They consume it for relief from various health problems, such as chronic pain. It’s also helpful for bringing back lost appetites and maintaining healthy body weight. Other consumers use THC-rich cannabis to beat insomnia, or they might appreciate its anti-inflammatory effects — many elder patients, in fact, consume cannabis to help alleviate their arthritis symptoms. People also argue that THC acts as an antioxidant that protects the skin. Moreover, THC is sometimes even used to combat seizure disorders such as epilepsy.

Be careful with potent strains

High-grade marijuana has been known to carry some paradoxical effects, and each person can experience the effects of THC differently. Anecdotal evidence suggests that THC can elicit opposite effects at high doses versus low doses — for example, when someone treats their anxiety with a low dose of THC to help them relax, it works. On the other hand, high THC concentrations can trigger panic attacks in some consumers and semi-frequently results in paranoia. Some people have even reported that high doses of THC can lead to depression.

The same notion of THC having potentially paradoxical effects has been noted in the human vascular system, as well: while low THC content cannabis has been shown to increase blood flow, high THC content cannabis can lead to vasoconstriction and decrease blood flow. Lastly, while THC is frequently used to help treat nausea in cancer patients who are undergoing chemotherapy, there are rare cases where patients consuming high THC content cannabis can’t stop vomiting and experience intense abdominal pain. This health condition is called cannabinoid hyperemesis syndrome and, currently, the only known way of dealing with it is stopping all cannabis use — this is especially unfortunate for patients who rely on cannabis for relief from other conditions.

Doctors and scientists believe that some people are more vulnerable than others to any potential negative effects of THC-rich cannabis. Adolescents and young adults in particular are susceptible because their brains are still developing. Studies have suggested that cannabis use among adolescents affects memory and executive functions that are important for mental flexibility and the ability to alter our behavior.

Notably, most major studies into the medicinal properties of cannabis have involved low doses of THC due to the low-quality nature of the marijuana crops approved by the federal government for research purposes. Therefore, if you choose highly potent cannabis products in the legal market, know that you may face unexpected or unwelcome effects.

The only way to identify a cannabis product as being rich with THC is through lab testing or personal consumption.

Top THC-rich strains

The following is a list of some of the most popular cannabis strains that tend to be particularly high in THC content.

Cookies Gelato
Cookies Gelato is frequently one of the most potent cannabis strains with THC levels of around 28%. It combines the sugary sensations of cookies and gelato and sports a sweet aroma. This hybrid strain can bring about a euphoric rush with a relaxing touch. Cookies Gelato is not for novice smokers, however, but for those with a bit of tolerance.

Royal Gorilla
Royal Gorilla is a knockout strain known to reach 26% THC content. This balanced hybrid produces an incredibly euphoric high and comes with mouth-watering citrus flavors with pine tones. Royal Gorilla provides a beautiful, euphoric, couch-locking experience and can be suitable for therapeutic use.

Bruce Banner
Bruce Banner is a heavy-duty hybrid with an average THC content of 23%. It won the Denver Cannabis Cup in 2013 and was rated the strongest strain by High Times in 2014. Since then, Bruce Banner has carved itself out quite the reputation. This strain delivers a dizzying euphoria that anchors your body in deep relaxation.

Green Gelato
Green Gelato is a must-try for any cannabis fan with a sweet tooth. It has a sweet flavor with a mix of fruity tones, sharp mint, spicy kush, and warm cookie flavor. Green Gelato gives a strong high that chills your body out because of its average THC content of about 27%.

Hulkberry
Hulkberry is one of the most impressive hybrids with THC content frequently surpassing 27%. This 65% Sativa-dominant strain is heavily advised for experienced smokers. Hulkberry keeps the high focus only in the brain and gives a clear and energetic feeling. Additionally, Hulkberry has a delicious fruity taste.

Triple G
Triple G is an Indica-dominant strain that can make you fly away. It contains 26–28% THC and can be used to treat insomnia, chronic pain, or appetite loss. Triple G can calm the nerves, relieve psychological stress, and allow the mind to rest from the thoughts that keep us up at night. If you decide to try Triple G, pay attention to the taste of berries, candy, and chocolate.

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San Francisco Dispensary Employees Ratify Union Contract

10/16/2020

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Workers at San Francisco, California dispensary Stiiizy Mission have ratified a contract with the United Food and Commercial Workers Union. The deal includes a salary increase that averages $3 an hour over the three-year life of the contract, a pathway to full-time work, and employer-provided health insurance and retirement accounts.

The workers approved the contract unanimously.

Kat Gonzalez, a budtender at Stiiizy Mission, described the process as “long” but “worth it in the end.”

“It feels good to know we have a team like UFCW 5 behind us to protect our rights as workers and help us advance in our careers within the cannabis industry. Every position is important in cannabis and being a part of the union ensures that budtenders are the backbone of the cannabis industry. We are not disposable, and our jobs deserve protection; it feels great to have that recognized.” – Gonzalez in a statement

According to the press release, UFCW 5 represents hundreds of cannabis industry workers throughout the Bay Area. In California, cannabis businesses over a certain size must enter labor peace agreements.

The UFCW has also recently reached agreements with cannabis workers in Massachusetts and Illinois. The union says it represents more than 10,000 industry employees nationwide.

According to the UFCW website, the union represents workers at major cannabis brands, including Wonderland, The Joint, Mr. Nice Guy, NRX, Modern Buds, Long Beach Green Room, McKesson, Have a Heart, and Garden State Dispensaries.

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Washington DC Bill Would Let Cannabis Convicts Work In Medical Industry

10/15/2020

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The Washington, DC City Council is considering a bill to allow individuals with felony or misdemeanor cannabis offenses to work in the District’s medical cannabis industry, the DCist reports. The measure would repeal a section of the District’s 1999 medical cannabis law, which prohibits those with cannabis-related convictions from serving as an employee, director, agent, or member of a medical cannabis business.

The bill also proposes a program to provide incentives for industry applicants that are 51 percent-owned by formerly incarcerated returning citizens. That program would waive industry application fees and offer technical assistance for such businesses applying for a license, according to the bill text.

At-Large Councilmember Robert White, who co-introduced the bill, said on Twitter that “there is no reason why those who’ve paid their debt to society should be locked out of this industry any longer.”

In 2014, DC voted to legalize cannabis for adult use, but Congress has ultimately blocked attempts to implement adult-use sales in the District. Returning citizens are allowed to grow their own cannabis and possess cannabis under that measure.

Adam Eidinger, of DC Marijuana Justice who helped introduce the legalization measure, said the organization has “generally been asking for rights for returning citizens to be in the industry.”

“People who have served their time should be able to work in this industry, regardless of whether they’ve had a past drug conviction, or really, any other conviction.” – Eidinger to DCist

Last May, Mayor Muriel Bowser introduced a bill to allow recreational use dispensaries. That measure remains under city council review. The medical cannabis industry reform bill was referred to the Committee on Business and Economic Development.

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Connecticut Aligns State Hemp Program with Federal Rules

10/15/2020

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Connecticut Gov. Ned Lamont (D) on Tuesday signed a bill aligning the state’s hemp rules with the federal government’s, the Hartford Courant reports. The measure expands the state’s pilot program, under which there already about 170 hemp-based businesses in the state with farmers cultivating about 500 acres of the crop.

The bill requires the state Agriculture Department to prepare a permanent hemp plan for federal approval, extends the licensing period for producers and manufacturers from two to three years, increases license fees for some industry sectors, outlines more stringent testing requirements, and expands the types of information exempt under the Freedom of Information Act to include hemp location and a producer’s testing results.

During the signing ceremony at a refurbished tobacco factory in Suffield – now a hemp cultivation site – state Agricultural Commissioner Bryan Hurlburt called hemp “the future of Connecticut agriculture,” according to a Journal Inquirer report.

“I’m very proud that the governor made hemp one of his priority issues last year and made sure that in the small call of a special session that we included it to make sure that we still have the opportunity for businesses like this to be successful in the state.” – Hulburt, during the ceremony, via the Courant

Lamont remarked that “CBD is remarkable for the variety of different uses it has.”

“We continue to evolve, and that is what hemp is about,” he said. “Farming is a big piece of our past, and it’s a big piece of our future.”

During the ceremony, U.S. Rep. Joseph D. Courtney (D), called industrial hemp “a tremendous opportunity for eastern Connecticut farming families.”

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University of Cincinnati Offering Cannabis Studies Certificate Program

10/15/2020

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Ohio’s University of Cincinnati is launching a cannabis studies certificate which includes history, culture, society, and regulatory topics, the News Record reports.

Sue Trusty, a horticulture program professor in the College of Design, Art, Architecture, Art and Planning (DAAP), had already been teaching Introduction to Hemp and Medical Cannabis when school officials approached her about expanding the offerings to a certificate program.

“It really was these other UC professors saying, ‘I have a class that if you were to offer this as a certificate, that would work,’” she said in the report. “That was the stimulus to put this certificate together.”

She explained that false information on the Internet was a driving force behind launching the program. Trusty’s class already includes UC professors from a variety of departments serving as guest speakers.

“Because it is illegal, a lot of the information on it is just garbage and faux. There is not a lot of research-based information. The government and universities have avoided doing that kind of research because it’s illegal.” – Trusty to the News Record

The two-year program includes five 3-credit courses, according to the university website, including Trusty’s hemp and medical cannabis course, a hands-on Hops and Hemp Field Experience course, and three courses chosen “from a menu of possible classes based on the student’s interest or job preference.”

“For example, a student who is interested in cultivation will focus on the horticulture and biology classes,” the program description states. “One who would work at a dispensary will be most interested in the classes related to public health, substance abuse, and public policy. A student interested in cannabis processing would be likely to choose plant chemistry classes as well as those dealing with the effects of cannabis on the body.”

Last year, the Cincinnati City Council voted to decriminalize cannabis possession up to 100 grams within the city limits. Medical cannabis is legal in the state.

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