Arizona Legalization Initiative Survives Legal Challenge

8/10/2020

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The cannabis legalization ballot initiative in Arizona has survived a legal challenge after a Superior Court judge ruled that the provisions included in the ballot summary language relayed enough information for voters who signed the petitions, the Mohave Daily News reports.

Anti-cannabis activists led by Arizonans for Health and Public Safety argued that the 100-word summary of the petition did not tell voters the reforms would allow more potent forms of cannabis – such as concentrates – changes state driving under the influence laws, and doesn’t specifically say that the proposed 16 percent tax on sales can’t be increased by the Legislature.

Superior Court Judge James D. Smith wrote in his decision that the principal provisions of the Smart and Safe Arizona Act were included in the summary and said that it took the anti-cannabis group 25 pages to outline what had not been included in the 100-word summary of the petition.

“Addressing legalizing a previously illegal substance must account for laws touching many parts of life. But if everything in an initiative is a principal provision, then nothing is.” – Smith in the ruling via Mohave Daily News

Last month the initiative campaign submitted 420,000 petition signatures to put the question on November ballots.

The ruling is likely to be appealed to the state Supreme Court and the petition signatures still need to be verified by the Secretary of State to ensure they all qualify. Republican Gov. Doug Ducey, in a statement of opposition last week, called the reforms “a bad idea based on false promises.”

If approved, individuals 21-and-older would be allowed to make legal purchases and possess up to 1 ounce. The 16 percent excise tax would be implemented, along with regular sales taxes. Industry-derived taxes would be mostly directed toward public safety and community colleges. Edibles would be permitted but THC in edible products would be capped at 10 milligrams.

In 2016 52 percent of voters rejected legalizing cannabis in the state.

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Product Recall in Michigan Over Licked Pre-Roll

8/07/2020

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Michigan’s Marijuana Regulatory Agency has recalled about 3,200 pre-rolls and suspended a processing center’s license for 14 days after an employee at the site allegedly licked one of the pre-rolls while making the product, MLive reports. The incident occurred at a Bay City processing center operated by the owners of Dispo.

The recall affects pre-rolled blunts and joints produced at the center and sold at medical and recreational dispensaries in Ann Arbor, Bay City, Detroit, Ferndale, Hazel Park, Lansing, Lapeer, Lowell, Negaunee, Quincy, River Rouge, and Traverse City.

On July 31, state regulators identified the potentially impacted cannabis products and placed them on “administrative hold” in METRC, the state tracking system, which alerts sellers of any issues at the time of sale. Several sales of the recalled product were made following the initiation of the investigation although it’s unclear whether retailers purposely ignored the “hold” alerts. The state may levy penalties on dispensaries that sell products on administrative hold.

According to MRA documents, the business owners complied with the agency’s request to voluntarily stop processing at the site on July 31, “took steps to address the issue internally” and “intends to remain inactive until further instruction” from regulators. The 14-day suspension began yesterday.

The recall affects a variety of products under different brand names sold at 15 dispensaries.

It’s unclear how officials learned of the incident. The suspension order states that the MRA “initiated its investigation based on information” that an employee licked one of the pre-rolls on July 13.

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Great-Grandmother Sues Over CBD Arrest at Disney Park

8/07/2020

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A great-grandmother is suing Disney after she was arrested at Florida’s Magic Kingdom last year for having CBD oil in her bag, Fox 35 News reports. Hester Burkhalter, 69, is being represented in the case by civil rights attorney Ben Crump. Crump is also representing the family of the late George Floyd.

Last May, Burkhalter was on a trip with her adopted children at the Orlando theme park when security officers found a bottle of CBD oil in her bag. The officers handcuffed her and took her to jail. Following the incident, Crump held a press conference saying Burkhalter would take legal action against Disney if they failed to “take ownership, sit down with this family and try to repair the harm.”

Burkhalter says she uses the CBD oil for “really bad arthritis” in her legs, arms, and shoulder.

On Wednesday, Crump and his legal team announced the lawsuit, saying that Burkhalter “was wrongfully arrested and taken into custody at Walt Disney World in Orlando, Florida, for possessing federally legal CBD oil.”

“She was treated like a common criminal because she had medical issues but still wanted to take her [children] for a lifelong dream that they have saved for two years. They came from North Carolina to try to fulfill the wishes of their young [children] and these loving grandparents were humiliated. Disney World lacks two things: common sense and common decency in how they treat people. It is entirely outrageous that Disney World would discriminate against people who have medical conditions that don’t respond to common pain relievers.” – Crump in a news conference via Fox 35

Burkhalter called the arrest “the most humiliating day of her life” and said at the time of the arrest she had a panic attack and vomited outside of the police car. When she asked for an ambulance, she was told to get back inside the car.

She was banned from Disney property, but that order has since been lifted.

“Every time I think about it a whole lot, or talk about it a whole lot, I get sick to my stomach and just don’t feel well,” she said in the report. “It affects you when something like this – having to take off your clothes in front of people. It affects me. I have dreams, can’t sleep sometimes.”

At the time of the arrest, CBD was illegal under Florida law, but it has since been legalized. Burkhalter is seeking $18 million in damages.

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South Africa Cabinet Advances Cannabis Legalization Bill

8/07/2020

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South Africa Cabinet officials have approved a draft bill allowing for personal cannabis use and sent the measure to Parliament, according to a BusinessTech report. The measure comes more than three years after a ruling by the Western Cape Town High Court that declared prohibiting cannabis use in private homes is unconstitutional.

The ruling was affirmed in 2018 by the nation’s Constitutional Court.

Justice and Correctional Services Minister Ronald Lamola said in a media briefing on Thursday that the bill will codify the Constitutional Court judgment, which declared some parts of the Drugs and Drug Trafficking Act and Medicines and Related Substances Control Act unconstitutional.

The judgment was suspended for two years to allow lawmakers to correct the affected sections of the laws, he said during his remarks.

“This bill regulates the use and possession of cannabis and the cultivation of cannabis plants by an adult for personal use. It provides the limit of the quantity of cannabis that may be possessed by an adult and criminalizes the smoking of cannabis in public places.” – Lamola, during a press conference via BusinessTech

The details of the proposal have not been released as they still require review by Parliament and a public consultation process before becoming law.

According to the United Nations Office on Drugs and Crime, an estimated 3.65 percent of South Africans consume cannabis and the nation ranks 100th among cannabis consuming countries.

The original suit that sparked the broad law changes was filed by Dagga Party leader Jeremy Acton and Rastafarian Garreth Prince. The duo argued successfully that some of the sections of the Drug Trafficking and Medicines Control acts were discriminatory, outdated, or unfair, and applied disproportionately to Black individuals. They had obtained stays of prosecution for people arrested for possession pending the outcome of the case.

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Survey: Boomers Use Cannabis Medically At Twice the Rate of Millennials

8/06/2020

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A survey by cannabis company Verilife found that baby boomers – people aged 56 to 76 – use cannabis medically at twice the rates of millennials – those 22- to 38-years-old. Half of the boomers surveyed said they consumed cannabis primarily for medical reasons, with 28 percent saying they use solely for recreational reasons, and 22 percent saying they use for both.

The figures are completely flipped for millennials surveyed, as 49 percent said they used only recreationally, with 22 percent saying they use for medical purposes and 29 percent who use for both.

Twenty-seven percent of millennials who use cannabis medically say it helps their chronic pain, followed by migraines (13 percent), to manage nausea (11 percent), arthritis (8 percent), to manage weight loss (8 percent), autism (8 percent), and irritable bowel syndrome (4 percent). For boomers, arthritis was the most common reason for medical cannabis use (15 percent), followed by chronic pain (13 percent), cancer (11 percent), migraines (8 percent), to manage weight loss (8 percent), nausea management (8 percent), and autism (7 percent).

Among millennial recreational uses, 34 percent said they use cannabis to relax, while 23 percent said they use for social reasons, 22 percent for anxiety, 9 percent to help them sleep, and 5 percent to enhance physical activity. For boomers, relaxation was the primary reason for recreational use (42 percent), followed by anxiety (17 percent), socialization (17 percent), and physical activity enhancement (17 percent). Another 8 percent said it was for some other, unnamed, reason.

Both generations still prefer to smoking as their primary method, with half of millennials and 39 percent of boomers saying smoking is their top choice. Boomers prefer capsules at more than twice the rate of millennials (23 percent to 10 percent), while other methods such as edibles, vaping, and tinctures were preferred at similar rates.

Neither generation reported more than 2 percent preference for dabbing or topicals.

The survey suggests that boomers’ cannabis use is increasing more than millennials’ during the coronavirus pandemic, as 44 percent of boomers said their use has increased, compared to 36 percent of millennials.

The majority of respondents from both generations – 57 percent – said they believe there is still a cultural stigma surrounding cannabis and both generations believe that cannabis has medical benefits.

“In fact, 92 percent of millennials and 89 percent of boomers agree that there are medical benefits, and if given the option, 68 percent of millennials and 61 percent of boomers would prefer medical marijuana over a prescription medicine to relieve pain.” – “Marijuana & the Differences Between Millennials vs. Baby Boomers”

The survey was conducted from May 29 to June 5, 2020 and included 1,000 current cannabis consumers from each generation. For millennials, the average age was 31 with 54 percent male and 46 percent female respondents. Of this group, 63 percent were employed full-time and 80 percent completed some type of post-secondary education. For baby boomers, the average was 59 with 61 percent male and 39 percent female respondents. Within this group, 66 percent were employed full-time and 79 percent completed some type of post-secondary education.

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Colorado Appeals Court: Not All Drug Convictions Trigger Deportation

8/06/2020

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The 10th U.S. Circuit Court of Appeals in Denver, Colorado ruled last week that not all drug convictions in the state can trigger the deportation of an immigrant with a green card or prohibit an individual from obtaining legal status, the Colorado Sun reports.

In the case of Everette Johnson, a 50-year-old Bahamian man who has held a green card since 1977, the court said Johnson should not be deported for violating federal drug laws because of the substantial differences between Colorado and federal law.

Johnson pleaded guilty in 2016 to hydrocodone possession, a Class 4 drug felony, and sentenced to 18 months in prison. The conviction led the Department of Homeland Security to begin the process of revoking his green card and deporting him. Lower immigration courts sided with the government and backed the deportation. Deportations of green card holders occur when the holders violate federal laws.

However, Appeals Court Judges Joel M. Carson and Judge Robert E. Bacharach said in the decision that “a state drug conviction cannot qualify as a basis for removal if the state statute’s elements are broader than the federal analogue.”

“Although the Colorado statute may be divisible as to the particular schedules, the statute is indivisible as to the identity of the particular controlled substance. And because the Colorado statute includes morpholine as a schedule II controlled substance, and the [Controlled Substances Act] does not, the Colorado statute’s schedules sweep more broadly. Thus, no categorical match exists between state and federal schedules.” – Carson and Bacharach in the opinion

Johnson’s attorney, Hans Meyer, suggested that the ruling has the potential for older, similar, cases to be reviewed.

“Immigration courts used the wrong analysis when reviewing simple possession crimes and either took away people’s green cards for life or denied them the ability to apply for green cards for life,” he told the Sun.

Last year Colorado lawmakers passed a bill reducing the sentence for Class 2 misdemeanors in the state from a year in jail to 364 days because deportation is triggered for legal immigrants who are convicted of crimes that carry jail terms of a year or more.

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Pittsburgh University Partners with Cannabis Firm on 10-Year Research Program

8/06/2020

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The University of Pittsburgh is partnering with cannabis company Parallel (formerly Surterra Wellness) on a 10-year medical cannabis research program. Parallel, through its retail brand Goodblend, will provide Pitt researchers $3 million in grants to study cannabis efficacy for conditions including sickle cell disease, anxiety, and chronic intractable pain.

Anantha Shekhar, senior vice chancellor for health sciences and the John and Gertrude Petersen Dean of the University of Pittsburgh School of Medicine, said the University of Pittsburgh School of Medicine “sees great value” in the partnership “for residents of the commonwealth and beyond.”

“Pennsylvania’s medical marijuana law emphasizes the need for rigorous research related to the use of medical cannabis. Pitt is taking a leadership role in conducting that research and we look forward to advancing the safety and efficacy of cannabis therapies via scientific rigor. Parallel’s focus on the innovation, quality, safety and consistency of its products makes them an ideal partner for Pitt’s research program.” – Shekar in a statement

Pitt will begin the research program with a clinical trial for sickle cell patients. The trial will investigate what role cannabis can play in treating the symptoms of the disease, which afflicts about 100,000 Americans, is associated with a median life expectancy of 45 years, and disproportionately affects African Americans.

A University of California, Irvine study published last month suggests that cannabis is a safe and potentially effective treatment for the chronic pain accompanying the disease.

Dr. Laura DeCastro, a Pitt associate professor of medicine, director of benign hematology for the Institute for Transfusion Medicine and UPMC Hillman Cancer Center, and director of Clinical Translational Research for the Sickle Cell Disease Research Center of Excellence, noted that patients with the disease have “no real alternative to chronic opioid therapy.”

Pitt is one of eight Pennsylvania institutions approved to conduct clinical studies as part of the state’s medical cannabis research program. Parallel has been approved for cannabis cultivation and processing licenses along with approval for six Goodblend retails locations across the state.

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Federal Legalization Bill Introduced by Minnesota Senator

8/05/2020

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U.S. Sen. Tina Smith (D-Minn) has introduced a bill that would regulate cannabis like alcohol and tobacco, giving regulatory authority to the Food and Drug Administration. The proposal sets the legal purchase and consumption age at 21, would establish a national strategy to combat cannabis use by youth, and establish rules for cannabis-impaired driving.

The measure would remove cannabis from the federal Controlled Substances Act.

Smith said the DUI laws should “ensure that recommended best practices do not contribute to racist enforcement patterns” and that the strategy to prevent youth use would include “special considerations to prevent racially disparate impacts of the strategy.”

“The federal prohibition on marijuana is a failed policy that contributes to mass incarceration and the racist overpolicing of communities of color. It is time to end that policy. In addition to addressing the harmful and racist legacy of the War on Drugs by passing bills like Senator Harris’ Marijuana Opportunity Reinvestment and Expungement (MORE) Act, we must address marijuana legalization in a manner that ensures that cannabis and cannabis products are safe, regulated, and well-researched.” – Smith in a statement

Currently, the bill sits in the Committee on the Judiciary, which is chaired by conservative South Carolina Republican Lindsay Graham. The measure does not presently include any co-sponsors.

There are at least four other bills in the Senate that would legalize cannabis and allow commercial sales. All are sponsored by Democrats, which are currently the minority in the chamber.

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McConnell Attacks Pelosi for Claiming Cannabis Is ‘Proven’ Therapy

8/05/2020

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During a speech on Tuesday, Senate Majority Leader Mitch McConnell (R-Kentucky) threw shade at Speaker of the House Nancy Pelosi (D-California) over comments she made last week in defense of provisions giving the cannabis industry access to traditional banking services, Marijuana Moment reports.

During his speech, McConnell blasted House Democrats’ COVID-19 relief bill on Tuesday as a wishlist containing “strange new special interest carveouts” and said Democrats were refusing to compromise on the issue.

“[Speaker Pelosi] said that, with respect to this virus, marijuana is ‘a therapy that has proven successful.’ You can’t make this up. I hope she shares her breakthrough with Dr. Fauci.” — McConnell, on the Senate floor

Pelosi’s comments last week, however, argued against the notion that cannabis — which was accepted by every state-legal market except Massachusetts as an essential service during the pandemic — is unrelated to the federal government’s COVID-19 relief package.

“I don’t agree with you that cannabis is not related to this,” she said. “This is a therapy that has proven successful.” It is unclear whether she meant as a treatment for the coronavirus or as a general treatment for the many diseases and health conditions for which millions of U.S. citizens rely on medical cannabis to treat.

There have been at least two preprint studies (meaning they were published without undergoing the typical peer-review process) that suggest cannabinoids and certain terpene formulations could be effective at quelling an immune system response to the coronavirus that has proven fatal in some patients.

The disputed cannabis provisions include language from the SAFE Banking Act that was inserted after the GOP-controlled Senate sat on and refused to consider the standalone legislation for months.

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Massachusetts Ends Quarantine of 600,000 Vape Products

8/05/2020

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The Massachusetts Cannabis Control Commission is allowing most products that were quarantined during last year’s vape-illness crisis to again be sold in the state, so long as they are re-tested and don’t contain vitamin E acetate. The agency said if a product fails the test it must be destroyed.

More than 600,000 vaporizer products manufactured before Dec. 12, 2019 have been quarantined since last November following a nationwide spate of vaping-related lung injuries that were linked to, mostly illegal, cannabis vape products and some nicotine vape products.

MCCC Executive Director Shawn Collins said since the agency’s vape product quarantine last fall, it has “dedicated significant energy and resources to investigating the additives, hardware, and storage practices that licensees use to produce and sell cannabis vaporizer products.” Those tests, Collins said, did not find detectable levels of vitamin E acetate but “did establish that heavy metal contamination may increase in vaping products over time.”

“This new order seeks to strike a balance between those products that can be retested or remediated safely for sale or repurposing with proper warning to patients and consumers, and those that cannot. As the nation continues to learn more about the broader health implications of vaping in all forms, I urge patients and consumers to understand the risks when they choose to consume any cannabis vaporizer product.” – Collins in a statement

The MCCC order will also allow some products to be “reclaimed,” allowing the oil to be repurposed for other products. Reclaimed products will include a statement indicating that the product was manufactured with previously quarantined material. If the material twice fails remediation, it must be destroyed.

The new rules take effect immediately.

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Thailand Moves to Expand Medical Cannabis Production

8/05/2020

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Thailand’s Cabinet has approved a Public Health Ministry proposal that would allow farmers, health professionals, and medical patients to cultivate, produce, and export cannabis and cannabis products, the Associated Press reports.

Currently, only government agencies and people with government permission can grow cannabis and develop products for the sector. Last month, the government gave such permission to hospitals, so long as the medicines come from a 16-recipe list and an expert in traditional Thai medicine is on-duty to prepare them. Last year, officials announced they would process seized, illegally grown cannabis into medicines for the domestic market.

Deputy government spokeswoman Trisulee Trisaranakul told the AP that Public Health Minister Anutin Charnvirakul submitted the draft amendment for the Narcotics Act to expand access to medical cannabis in Thailand.

Thai officials amended the country’s drug laws in 2018 to allow medical cannabis and kratom use in the country. Kratom is native to Thailand and is traditionally used as a painkiller and stimulant.

A report last year from Prohibition Partners suggests that Asia’s medical cannabis and hemp market could be worth $5.8 billion by 2024 if legalized throughout the region. Along with Thailand, Pakistan and Uzbekistan have legalized cannabis for medical use, while South Korea allows medicinal use of CBD products.

According to the report, China and Japan represent the region’s two largest-value medicinal cannabis markets – worth almost $4.4 billion and $800 million by 2024, respectively – accounting for an estimated 90 percent share of the market.

Thailand opened its first two medical cannabis clinics in January.

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Chris Van Leeuwen: Navigating Insurance In the Cannabis Industry

8/04/2020

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As the cannabis, industrial hemp, and CBD industries gain traction, so must ancillary services designed to assist the innovative entrepreneurs and business owners in this space. Sometimes those services are born out of necessity for the industry but many times they come from long-time experts in their field who have pivoted to a new focus on cannabis, one of the world’s most exciting and fastest-growing industries.

In our latest Q&A, Chris Van Leeuwen — an insurance industry veteran of over 30 years — talks about the insurance needs of the modern cannabis business owner and how Insurance Canopy caters to those needs. He also offers insights about what business owners should look for when purchasing insurance packages for their cannabis, hemp, and/or CBD firm, describes the most common risks that such companies are facing, and more!

Scroll down to check out the full interview.

Ganjapreneur: What are the benefits of buying cannabis, CBD, or hemp insurance?

Chris Van Leeuwen: The most obvious benefit is peace of mind. Obtaining the cannabis insurance coverages that are best suited for you and your business can bring a sense of security. Additional benefits include meeting contractual requirements of landlords, dispensaries, suppliers, or financial institutions. Insurance also gives confidence to consumers, potentially helping you increase sales or distribution of your product.

Really, when it comes down to it, proper insurance coverage can give you the peace of mind that allows you to focus more on building your business—not defending yourself from claims and lawsuits.

How much does cannabis insurance cost and how much insurance coverage does a cannabis-related business need?

The cost of insurance coverage varies based upon multiple factors: annual sales revenues, product type(s), the distribution model, your business operations, location, etc. Annual minimum premiums start at $850 and increase from there based upon your exposures and coverage choices.

My typical response to individuals who ask how much insurance they should purchase is, “How much do you have to lose?” You’ve spent a great deal of time and resources building your business; one lawsuit without proper coverage—frivolous or not—can put many businesses under. It’s important to evaluate your exposures and make a conscious decision on the risk you’re willing to take.

Is $1 million general liability limit enough coverage? Not if you’re sued for $2 million. In our litigious society, if you don’t have adequate limits and you have other business or personal assets, an attorney will probably go after them, so consider increasing your liability limits to protect yourself. This is definitely not an area where you want to skimp on coverage.

What types of insurance should cannabis, CBD, and hemp business owners have? Would just general liability insurance be sufficient?

No, not if they want to minimize their risks and maximize their protection. At a minimum, the three types of insurance that your cannabis, CBD, or hemp-related business should purchase are: General Liability Insurance, Product Liability Insurance, and Property Insurance. Let me explain some of the differences between general liability, product liability, and property insurance.

General Liability
General liability insurance protects you against third-party liability claims for bodily damage and property damage from your day-to-day operations. As you deal with the general public, you become vulnerable to lawsuits that arise from damages or harm you may cause. I’ve seen a simple slip and fall accrue thousands of dollars in damages, medical fees, lost earnings (current and future), emotional distress, and pain and suffering.

Adequate general liability coverage could help you respond to the compensatory damages and defense costs associated with claims like that.

Product Liability
Product liability insurance protects you against third-party bodily injury and property damage claims arising from your products. Product liability exposures include illness caused by things like edibles, infused products, manufacturing, and/or product-related defects.

Product liability also includes warranties or representations you make with respect to the fitness, quality, performance or use of your product in addition to providing (or failing to provide) warnings or instructions.

Plain and simple, wherever you are in the supply chain, you can be named in a suit if the edibles, inhalants, or infused products you manufacture, distribute, or sell cause illness or injury.

All policies have specific limitations, conditions, and exclusions to be aware of. I’m seeing some recent events in the vaping industry now affecting the cannabis industry. Many insurance companies are now excluding injury and sickness arising from vaping products (e.g. pens, batteries, cartridges). It’s critical you review these exclusions and limitations with an agent so you can make informed decisions for your business.

Property Insurance
Commercial property insurance can provide an array of coverages that may be critical for your business. The most common coverages businesses purchase are building, business, personal property, and loss of business income. However, you may also want to consider adding or expanding coverages for things like:

  • Cannabis Finished Stock
  • Harvested Cannabis Materials
  • Monies and Securities
  • Outdoor Signs
  • Property Off Premises
  • Property In Transit
  • Employee Dishonesty
  • Spoilage

Many companies have property enhancement coverages that bundle these into standard property insurance. Businesses can also expand their limits affordably based on their needs.

Property losses are some of the most common claims we see in the industry and sometimes the most neglected in terms of businesses obtaining proper coverage for them. It is important to have an open dialogue with an experienced insurance agent familiar with the cannabis, CBD, and hemp industries to discover your needs and get the right coverages for your business.

What are the most common risks you see cannabis businesses facing?

Cannabis, CBD, and hemp-related companies have unique exposures that vary depending on where they are within the seed-to-sale supply chain. Cultivating, manufacturing, testing, distributing, tracking and selling pretty much all possess different risks for carriers to consider.

The most common coverages purchased are for premises slips and falls, product liability, finished stock, harvested material, theft (including theft by employees), commercial property, and others.

We always recommend discussing with your agent the exposures that can cause financial harm to your business and obtaining the right coverages. If your policy isn’t written correctly or lacks proper coverage, a suit or claim could range from disruptive to catastrophic and seriously harm or even destroy your business.

Are there differences between your cannabis insurance, CBD/hemp topical insurance, and CBD/hemp ingestible insurance offerings?

Absolutely. Insurance companies have developed policy options based upon your business operations and the products you manufacture, distribute, grow, or sell. The policies may be similar in some ways, but there are some significant coverage differences based upon the unique risks your business faces.

I should first say that for the best assessment of the unique risks your business faces and the coverage it needs, I highly recommend working with a reputable agency, ideally one with experience in this industry.

Insurance Canopy is definitely one agency that’s reputable and experienced. But it’s also really unique and here’s why.

Nearly all insurance agencies have to do this back-and-forth with the insurance carrier when your application is being evaluated and underwritten. It can be a long and frankly a pretty tiresome process. But one of the special things about Insurance Canopy is that our carrier actually trusts us to do the underwriting on your policy in-house. There’s very little to no back-and-forth, which means a much faster turnaround time for you. It also means lower processing costs, so we actually pass that cost savings in processing on to you in the form of cheaper policy premiums. We’re one of the very few agencies even capable of doing that, and it’s only because of the trust we have with the carrier and our experience in the cannabis industry. So not only do you get someone reputable with great experience, you get the coverage you need faster and oftentimes cheaper than you can anywhere else.

Now back to the differences between insurance offerings within the cannabis industry. We developed different insurance programs or policy types because the risks, coverages, and nature of the businesses are so unique. A little about each one:

Cannabis Insurance Program: This program covers a broad spectrum of cannabis exposures including indoor and greenhouse cultivation, bakeries, manufacturers, hydroponic stores, laboratories, vocational schools, dispensaries, delivery companies, medical offices, consultants and retail outlets.

This program can also provide coverage for finished cannabis stock and finished cannabis products containing marijuana and/or its derivatives ready for retail sale and mature marijuana plants no longer in the growing medium, which is in the process of being dried or which includes any raw materials or product.

CBD/Hemp Topicals Insurance Program: This program is specific to business operations that produce non-ingestible, topical products containing CBD or hemp extractions such as balms, lotions, and various skincare products. CBD/hemp topical products must fall within the legal limits of less than 0.3% of THC to qualify for this coverage.

CBD/Hemp Ingestible Insurance Program: This program is specific to businesses that produced ingestible products created with CBD or hemp extractions such as tinctures (sublinguals), pet supplements, foods, gummies, beverages, and dietary supplements. CBD/hemp ingestible products must fall within the legal limits of less than 0.3% of THC to qualify for this coverage.

Because Insurance Canopy has access to all three of the national insurance programs, we have coverage options most suitable for your business.

Where should a business in the cannabis, CBD, or hemp industry buy insurance?

You’ll want to look for a representative that understands the cannabis, CBD, and hemp industries to help navigate you through the unique policy purchasing process.

Like I said, we have access to several insurance programs that are designed to respond to the cannabis, CBD, and hemp industries’ unique needs. Our Insurance Canopy team has worked diligently to streamline the purchasing process for the cannabis, CBD, and hemp industries. Because we work directly with our carrier underwriters and they trust us to do the underwriting for them in-house, we actually turn most quotes around within 24-48 hours compared to the average industry standard of 2-3 weeks. That means you get the coverage you need quicker, oftentimes cheaper, and can go back to growing your business sooner.

What are the main factors insurance companies consider when a cannabis business is trying to obtain a policy?

Insurance companies take many factors into consideration when underwriting cannabis exposures—some I’ve already mentioned including gross sales, product, distribution, and more. But overall business and quality control operations are important factors too. For example, do you comply with good manufacturing practices (GMP)? Is your labeling compliant with local and federal laws? Do you obtain a certificate of analysis (COA) on products? Are your records well-kept and maintained? Do you avoid offering unsubstantiated product guarantees? The underwriters are also looking to experience a virtual tour of your business including photographs inside and outside of your business, and often evaluate the security and construction of your building.

It’s important to provide the insurance carrier with a comfort level of your business exposure and demonstrate that you have good business and quality control practices in place. The better you are at that, the more likely you are to obtain a policy.

What advice does Insurance Canopy have for business owners looking for cannabis, CBD, or hemp insurance?

Know your risks. Know what’s at stake. Know your options, limits, and coverages. Start by talking to someone who knows cannabis industry insurance and has your best interest in mind. Trusted firms like Insurance Canopy help you identify exposures that threaten your business and provide you options to protect it, you, and your reputation from being negatively impacted.

Our Insurance Canopy team will walk you through the underwriting process to provide you some competitive insurance options. Think of us more as a trusted partner and advisor to your company and not just your insurance agent.

Thanks again, Chris, for taking the time to answer our questions. You can learn more at InsuranceCanopy.com.

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Study: Women Who Use Cannabis Are More Sexually Satisfied

8/04/2020

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A study published last month in the journal Sexual Medicine suggests that women who use cannabis on a regular basis have better orgasms, higher arousal, and more sexual satisfaction overall. The study is the first-of-its-kind to use a validated questionnaire to assess the association between female sexual function and aspects of cannabis use.

The study included 452 women aged 30 to 49, of which 72.8 percent used cannabis more than six times per week. Most of the women (81.6 percent) were in a relationship and 46.7 percent of the participants usually consumed cannabis by smoking flower.

The researchers used the validated Female Sexual Function Index and women who reported more cannabis use reported higher FSFI scores. Moreover, women who increased their use by just one use per week reported an increase in total FSFI, including in the desire, arousal, orgasm, and satisfaction domains.

For each additional increase of use per week, the odds of reporting female sexual dysfunction declined by 21 percent, the researchers found. The study found neither the consumption method nor the cannabis type consumed impacted sexual function.

The authors note that “the exact mechanisms by which cannabis may increase sexual function in women is unknown” but “the endocannabinoid system has been postulated to be involved in female sexual function.” They point out that previous studies “have demonstrated that increased amounts of endogenous cannabinoids … are associated with increased sexual arousal.”

“As many patients use cannabis to reduce anxiety, it is possible that a reduction in anxiety associated with a sexual encounter could improve experiences and lead to improved satisfaction, orgasm, and desire. Similarly, THC can alter the perception of time which may prolong the feelings of sexual pleasure.” – Assessment of the Association of Cannabis on Female Sexual Function With the Female Sexual Function Index

Note: We interviewed Dr. Genester Wilson-King, one of the study’s authors, earlier this year. Check it out to learn more about the study, the relationship between cannabis and sexual health, and more!

Last year, cannabis company Eaze partnered with vibrator manufacturer Lioness on a report that suggested cannabis makes sex lives better. The study found that 85 percent of respondents were more satisfied with their orgasms during solo sessions and 79 percent during partner sessions. Additionally, 84 percent reported that cannabis improved their experience with sex toys during solo sessions, while 79 percent agreed, but for partner sessions.

Eaze and Lioness also found cannabis to have a resounding effect on the length of sexual activity during both solo (64 percent) and partner (73 percent) sessions.

A 2017 study purported that cannabis consumers have, on average, about 20 percent more heterosexual sex than non-consumers. That study found that women who consumed cannabis daily had sex an average of 7.1 times during the previous four-week period, compared to six times for women that had not consumed cannabis in the past year.

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Black People Comprise 97% of Albany Cannabis Arrests & Tickets

8/04/2020

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From July 9, 2019 to July 9, 2020 Albany, New York police made arrests or issued tickets for cannabis crimes 134 times and just four of those enforcement actions were against a white person, the Times-Union reports.

According to the data outlined by the newspaper, 97 percent of the time those arrested or ticketed were Black — Black people, however, represent just under 30 percent of Albany’s population, according to recent census data.

The majority of the cannabis-related actions by police in the city – 76 of the 134 – were for unlawful possession, a violation, while 25 arrests were for possession of more than 8 ounces, a felony in the state.

Cannabis possession up to about 2 ounces (57 grams) is a simple violation in New York since Gov. Andrew Cuomo (D) signed the decriminalization expansion last year after lawmakers failed to pass legalization legislation.

Of the 134 arrests and citations, 177 were related to crimes in progress, but the police data analyzed by the Times-Union did not indicate which crimes were being investigated or committed.

Albany Police Chief Eric Hawkins, who is Black, said the felony-level arrests were related to “major” quality-of-life issues, violent crime, drug use and sales. He added it is “always concerning when you see that all of the arrests were Black males.”

“It’s not surprising to me that when we’re concentrating on addressing violent crime … we’re going to pull in some marijuana-related issues. … We’re not stopping young men in the community and writing them minor possession of marijuana tickets, it’s just not happening. I’m not seeing that these young men are being targeted but it’s concerning to me that that they are the ones who are impacted by this.” – Hawkins to the Times-Union

Mayor Kathy Sheehan (D) said city officials would examine the arrests as part of a state-mandated reform of the Albany Police Department. That review will be headed by the Albany Police Reform Collaborative and will analyze data associated with arrests by race, gender, and other demographics.

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Arizona Gov. Opposes Cannabis Legalization Initiative

8/04/2020

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In a statement of opposition, Arizona Gov. Doug Ducey (R) called the state’s cannabis legalization ballot initiative “a bad idea based on false promises,” according to a Capitol Media Services report. The governor said he would vote against the measure in November claiming that legalization in other states has led to increased traffic deaths, increases in teen drug use, and cannabis exposure in newborns.

In the statement outlined by CMS, Ducey said that the state’s medical cannabis program “is serving the people who need it for health-related reasons.”

In their 2020 political scorecard, NORML graded Ducey with a “D.” During his 2016 campaign, he said he didn’t “think any state ever got stronger by being stoned.”

As part of the initiative process, Arizona voters will receive pamphlets from state officials containing arguments both for and against the reforms. Arizona Public Health Association Executive Director Will Humble will write arguments from both sides. On one hand, he said, his organization broadly supports the idea of criminal justice reform; however, he suggests that “on the other hand, there is good evidence that these retail marijuana laws increase access to people under 21” and cannabis is “harmful to adolescents.”

Humble said he is “probably going to vote for it.”

Late last month, Arizonans for Public Safety – who oppose the reforms – filed a lawsuit against the initiative. The anti-cannabis group argues that the 100-word summary of the petition does not tell voters the reforms would allow more potent forms of cannabis, changes state driving under the influence laws, and doesn’t specifically say that the proposed 16 percent tax on sales can’t be increased by the Legislature.

In 2016, the cannabis legalization initiative in the state failed 52-48 percent.

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Michael Thompson, Nonviolent Cannabis Prisoner, Hospitalized With COVID-19

8/03/2020

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Cannabis prisoner Michael Thompson, who is serving 40-60 years in a Michigan prison for selling cannabis, has been reportedly hospitalized with the coronavirus. Cannabis and prison reform advocates called for his release earlier this year when the virus first started spreading through the U.S. prison system but Gov. Gretchen Whitmer, who could have ordered his early release from prison, failed to take action.

Now, Thompson — a 69-year-old and diabetic nonviolent cannabis offender — is face-to-face with the frequently fatal virus.

Thompson has already served 25 years of his 40 to 60-year sentence, which was handed down in 1994 after he sold cannabis to an undercover police officer. During his incarceration, Thompson’s immediate family — including his mother, father, and only son — have all passed away; his mother’s last wish was that her son would not die in prison.

While it is widely accepted that nobody deserves to die over an herb, the coronavirus has made that a very real possibility for Michael Thompson (and the thousands of other prisoners who are locked up on nonviolent drug charges). We are calling on our followers and anyone who supports responsible criminal justice reform to contact Gov. Whitmer and the Michigan Parole Board to demand Michael Thompson’s early release if he survives this bout with COVID-19.

Contact officials via phone:

Michigan Parole Board – (517) 373-0270
Governor Whitmer’s office – (517) 373-3400

Contact the Michigan Parole Board via email:

moore4detroit@gmail.com
Parole-Board-Staff@michigan.gov
jlwarfield@aol.com
washingtonm6@michigan.gov

Michael Thompson’s Michigan Department of Corrections (MDOC) number is 176309.

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SEC Charges Six in $25M Cannabis Business-Related Fraud

8/03/2020

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The Securities and Exchange Commission has filed charges against six individuals from California and Arizona for defrauding investors out of $25 million. The scheme included nine issuers and three marketing companies.

The SEC complaint alleges that from September 2017 to February 2019, California residents Anthony Todd Johnson, Jeremy T. Johnson, Richard A. Portillo, and Michael R. Gregory, and Arizona residents Charles Lloyd and Mark W. Heckele, raised funds from more than 400 individuals to invest in a California cannabis farm and a separate CBD extraction facility.

The SEC said the fraud was conducted through the following companies:

  • Smart Initiatives, LLC
  • Valley View Enterprises LLC
  • Target Equity LLC
  • Zabala Farms Group, LLC
  • GPA Enterprises LLC
  • C-Quadrant LLC
  • Green Bud Initiatives LLC
  • RJ Holdings Group, LLC
  • CIS Marketing, LLC
  • Green Growth Ventures, LLC
  • Extraction Capital Tier 1, LLC
  • Lloyd Marketing, LLC

The Johnson brothers, Portillo, Lloyd, and Heckle allegedly led investors to believe that they would receive a guaranteed annual return on their investments of 100 percent or more. Further, the complaint alleges that the Johnsons misappropriated more than $2.7 million of investor funds and, with Gregory, deceived investors about a purported “business loan” secured by real property to develop the CBD extraction facility that was actually used to pay back investors in an unrelated entity.

The complaint also claims that certain defendants misrepresented the principals’ backgrounds, their capital contributions, and a purported relationship with a California university.

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FDA Approves Epidiolex to Treat Tuberous Sclerosis Complex

8/03/2020

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The Food and Drug Administration has expanded the label for the cannabis-derived pharmaceutical Epidiolex to treat seizures associated with tuberous sclerosis complex (TCS) and allowing the drug to be used by patients one year of age and older.

The GW Pharmaceuticals drug is the only FDA-approved form of CBD derived from the cannabis plant. The medication was initially approved by the agency in 2018 for treating seizures associated with Dravet syndrome – or Lennox-Gastaut syndrome – in patients aged two and older.

GW CEO Justin Gover said the label expansion allows patients with TCS to “immediately” access the medication.

“This label expansion, including the expansion of the age range in all approved indications, further demonstrates that the FDA process can continue to enable broader patient access to appropriately tested regulatory approved cannabinoid medicines.” – Gover in a press release

Dr. Elizabeth Thiele, director of the Herscot Center for Tuberous Sclerosis Complex at Massachusetts General Hospital, said that nearly two-thirds of TSC patients develop treatment-resistant epilepsy and noted “a need for new options that may benefit these patients who often try and fail existing treatments.”

“Based on previous positive trial results in TSC patients, Epidiolex may become an important treatment option for patients,” she said in a statement. “It is a new tool in the toolbox for physicians and could meet a significant unmet need.”

In the U.S. about 50,000 people suffer from TSC along with approximately 1 million worldwide. About 85 percent of patients experience epilepsy and more than 60 percent do not achieve seizure control.

The drug is also approved in the European Union under the name Epidyolex. Regulators in Europe are currently reviewing the application to expand the label for TSC and lowered age range for patients.

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Scotts Miracle-Gro Hydroponics Subsidiary Hawthorne Reports 72% Q3 Growth

8/03/2020

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Scotts Miracle-Gro Company reported a company-wide sales increase of 28 percent in the third quarter, including 72 percent growth for Hawthorne – its indoor cultivation and hydroponic subsidiary.

Separately, Scotts Miracle-Gro Board of Directors approved payment of a special dividend of $5 per share and increased its regular quarterly dividend by 7 percent to $0.62 per share, the company said in a press release. Both dividends are payable September 10 to shareholders of record on August 27.

For the quarter – which ended on June 27, 2020 – company-wide sales increased 28 percent to $1.49 billion. U.S. Consumer sales increased 21 percent to $1.08 billion from $889.1 million. Hawthorne sales increased 72 percent to $302.9 million compared with $176.3 million. Segment income increased 14 percent for U.S. Consumer sales to $310.5 million and 145 percent for Hawthorne to $41.1 million.

Scotts Chairman and CEO Jim Hagedorn called the year so far an “unprecedented success” and said the board decided to make special one-time payments later this year to nearly 3,000 hourly and salaried associates who do not participate in bonus plans and enhance bonus payments to another nearly 1,500 eligible associates who do participate in incentive plans. Additionally, Hagedorn said the company plans to double its charitable contributions.

“Our results this year continue to exceed our most optimistic expectations and are a testament to the critical nature of the categories in which we compete, the commitment of our retail partners, and the loyalty of the consumers and cultivators who rely on our products for their success. As we enter the final weeks of fiscal 2020 and prepare for the start of our next fiscal year, we remain optimistic about the strength of our business as well as our ability to continue to enhance shareholder value.” – Hagedorn in a statement

Hagedorn added that Hawthorne saw strong third-quarter growth “in every product category and geography” noting that its growth in the quarter was “higher-than-expected.” For the first nine months of the year, Hawthorne sales increased 59 percent to $731.7 million, the company said.

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Pickens County, Alabama Case Against Purple Heart Veteran Echoes Racist History

7/31/2020

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In August 2016, Purple Heart-recipient Sean Worsley was arrested for the possession of marijuana in Gordo, Alabama. The Black veteran had purchased the cannabis using a state-issued Arizona medical card before leaving for a road trip to visit family in the South. The arrest — and the cavalcade of misfortune that followed for Sean and his wife Eboni Worsley — was thoroughly detailed in a recent account published by Alabama Appleseed Center for Law and Justice.

When they were arrested, the Worsleys had stopped to refuel their car on the way to Sean’s grandmother’s house in North Carolina. Gordo Police Officer Carl Abramo, who has since left the force, noticed Sean playing air guitar and joking around with Eboni and he approached to ask them to turn down their music. Eboni complied immediately, but the officer smelled cannabis.

Note: the smell of cannabis was also the justification cited by St. Anthony, Minnesota police officer Jeronimo Yanez before shooting and killing Philando Castile with five close-range bullets. This event occurred just one month before the Worsleys’ arrest.

Believing that his state-issued card protected him, Sean informed the inquiring officer of his veteran status and that he did have medically prescribed cannabis in the car. Sean told Abramo exactly where to find it and calmly complied with his requests but the officer called for backup and, ultimately, the police conducted a full search of the vehicle. They found Sean’s cannabis, tools commonly used by medical cannabis patients, grocery bags containing the loose tobacco insides of cigarillos, and Eboni’s prescribed painkillers.

According to Alabama state law, possession of cannabis for “personal use” is a misdemeanor offense punishable by up to one year in jail and a $6,000 fine. However, since Worsley had multiple strains in separate bags and a scale, the Gordo police officers on the scene claimed he was attempting to traffic. This assessment increased charges to at least Possession in the First Degree, bringing jail time up to a mandatory minimum of one year and one day, along with a $15,000 fine.

Ignorance About Medical Cannabis Leads to Biased Assumptions

Every cannabis patient knows that having multiple bags and a scale is not uncommon practice when managing a condition. Different phenotypes of cannabis plants produce flowers that can help with various symptoms — because of this, many cannabis patients keep more than one type of flower on hand to ensure they can treat specific symptoms. Over a long trip, a patient often must titrate out their daily dosage to ensure they don’t run out of meds before they return to a medical dispensary — which requires a scale to do effectively.

A Deposition from the District Court of Pickens, Alabama states that cannabis flowers were packaged in a bag, a plastic container, and a cardboard box. They also recorded finding a scale, glass pipe, rolling papers, cigarillos, and some bags of loose tobacco. There is no mention of a box of empty baggies for processing or pounds of flower to weigh out from. As evidenced by his willingness to cooperate with police to his supply and medical card, Sean Worsley was in possession of various strains of medical cannabis and the items that are often required to use his prescribed medicine, which in no way meet the amounts necessary to rationally consider him a trafficker.

The knowledge of what a scale and cannabis flowers are used for by a patient is a law enforcement blind spot, one that led four Gordo, Alabama police officers to charge a Purple Heart recipient with a felony. This ignorance is supported by a Federal government and judicial system that refuses to recognize that cannabis has any medicinal value. The ineptitude with cannabis is shared nationwide by law enforcement. A fact that’s proven by the “big busts” of legal hemp shipments that plagued startup CBD companies in 2019.

Ganjapreneur reached out to Pickens County Judge Lance Bailey (who did not rule on the case) for comment, as the arrest happened within his presiding county. Judge Bailey replied, “Yes, the Defendant had a prescription for medicinal marijuana in AZ. But the Defendant had 2 large bags of marijuana in his vehicle, a set of scales, and smaller bags that are used for packaging.”

No smaller bags are mentioned in the deposition, nor is the weight of the cannabis flower that was found in each container listed, and Judge Bailey did not respond to further requests for clarification. Based on publicly-available information, we can’t help but wonder if the two “large bags” referenced in his email are in reference to the “…two separate grocery bags containing cigarellos and tobacco from within the cigarellos…” that are listed in the deposition, which would serve as another example of just how much ignorance about cannabis there is within the justice system.

A County Steeped in Racist History

The mistreatment of this case is an unfortunate reality for many Black Americans. Data shows that in 2016, the year of the Worsleys’ arrest, Black people were arrested for cannabis possession at four times the rate of white people in the state of Alabama; this data has been available since October 2018.

When asked by the Alabama Political Reporter if Sean Worsley would have been treated differently if he were white, West Alabama District Attorney Andy Hamlin said, “That is an absolute pile of crap,” and added that it was “ridiculous and insulting” to even suggest it.

The assertion that Worsley’s treatment could be based on his melanin content is not so ridiculous, however, when taking a look into the history of justice in Pickens County. The Pickens County courthouse is famously haunted by Henry Wells, a Black freedman who was shot by police while attempting to escape a gathering mob in 1878.

Pickens County Courthouse
The Pickens County courthouse is reportedly haunted by the ghost of Henry Wells.

In 1979, civil rights activists Maggie Bozeman (50 at the time) and Julia Wilder (69 at the time) were arrested and convicted of voter fraud in Pickens County. The charges claimed the Black activists visited with elderly and illiterate residents of the area to assist them in voting through absentee ballots. The court case that proceeded is confusing, with testimonies from witnesses consistently siding with both the defense and the prosecution, depending on who was interviewing them. A parade of community beacons testified on behalf of the character of both civil rights activists but the pair were still found guilty.

Maggie Bozeman and Julia Wilder
Maggie Bozeman and Julia Wilder, Photo via Donald V. Whatkins

At the end of the trial, the all-white jury sentenced Bozeman to 4 years in prison and Wilder to the maximum of 5 years. Judge Clatus Junkin denied probation and the pair were sent to the state penitentiary. After national outrage and eleven days of protests, the Governor organized a work-release program for the activists. Circuit Judge Clatus Junkin went on the record to state that the elderly women had received special treatment, and that the work release program was a “slap in the face to the judicial system.” The entire conviction was thrown out in 1984 by US District Court Judge Truman Hobbs, ruling that the women were improperly tried by Judge Clatus Junkin.

Intergenerational Injustice

It was almost forty years ago that Bozeman and Wilder were sentenced to a punishment four times harsher than the most severely treated white defendant had ever faced for the same crime.

Flash forward to 2020, and Sean Worsley is sentenced to a ridiculous 5 years in prison over medical cannabis in the circuit court of Judge Samuel Junkin, who is none other than the son of Judge Clatus Junkin.

The severity and cruelty of the sentence is important to note, as Sean Worsley faces 60 months in the custody of the murderous Alabama Department of Corrections during a rapidly worsening global pandemic. Even by the standards of Alabama law, his sentence is egregious.

Senator Cam Ward explained to a reporter in 2018, “The only people in state prisons on possession of any kind of marijuana are those trafficking the truckloads of it.” But in Pickens County, Alabama, it appears that even a registered medical patient who served their country can wind up in prison… if they’re Black.

Ganjapreneur reached out to Judge Samuel Junkin multiple times for comment but a representative said he was on vacation and out of the office.

In the wake of the Alabama Appleseed article detailing Sean’s case, there has been an outpouring of support for the Worsley family. At her family’s suggestion, Eboni Worsley set up a GoFundMe that surpassed its $80,000 goal and she posted a video message in response to all of the support. In this video, she discloses that among their many fees and payments, they owe the VA alone $66,000.

Another Example of the Human Toll of Cannabis Criminalization

The Worsleys’ is a tragic tale of an American veteran who, by all accounts, was horribly mistreated by the nation he pledged to defend upon returning home from deployment with a Purple Heart, PTSD, and a traumatic brain injury. It is a narrative that repeats itself across the American judicial system, especially when the defendant is Black. In Pickens County, it is a continuation of the centuries-old history of unjustifiably harsh sentencing for Black people, a history so deep that local folklore would suggest it literally haunts the courthouse windows.

In the case of Sean Worsley, there is even more ignorance at play — if law enforcement had any real understanding of medical cannabis, it is possible that Worsley would have been charged with a lesser misdemeanor offense. And if police across the nation were more informed about the uses and effects of medical cannabis, perhaps vulnerable patients would be less likely to face police brutality and violence.

If you would like to take action in support of freeing Sean Worsley, we suggest that you start by reading and signing this open letter to Alabama officials.

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Cannabis Licenses Could Be Transferred to New Owners in Nevada Lawsuit

7/31/2020

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A proposed settlement in an ongoing lawsuit between Nevada officials and cannabis businesses would transfer some industry operator licenses to businesses that were denied approval during the state’s 2018 licensing round, the Nevada Current reports. Despite the proposal, some plaintiffs say they were shut out of the negotiations, allege collusion in the process, and are asking a judge to prevent officials from approving the deal.

The plaintiffs in the case claim regulators unfairly grated the bulk of the cannabis industry licenses to a few operators. In 2018, 61 state licenses were issued to just 17 applicants, the Current reports.

  • The settlement would shift 10 industry licenses from approved defendants to plaintiffs and force the state to issue one additional license.
  • The deal would see one of Lone Mountain’s Las Vegas licenses awarded to Qualcan, while licenses held by Lone Montain in Washoe, Lincoln, and Esmerelda Counties would be given to ETW Management. A Lone Mountain Douglas County license would also be transferred to Thrive.
  • Qualcan would also receive a Carson City license from Nevada Organic Remedies, owners of The Source. Nevada Organics would also assign a Clark County license to MM Development, owners of Planet 13.
  • Thrive would also assign a City of Henderson license to ETW.
  • Helping Hands would assign a Clark County license to LivFree, who would also receive a new license from the state for Henderson.
  • GreenMart would transfer a Clark County license to Nevada Wellness Center.

The settlement would also force the companies receiving a license to join the state in defending the lawsuit against the other claimants not awarded a license in the settlement.

Attorneys for THC NV and Herbal Choice – two companies that were not provided relief under the proposal – called the settlement “collusively procured” and said that their clients were deliberately and intentionally omitted from the decision-making process.

Attorney Amy Sugden told the Current that she intends to challenge the Tax Commission’s jurisdiction over the agreement since the industry is regulated by the Cannabis Control Board.

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Injured Employee Denied Compensation For Medical Cannabis

7/31/2020

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A Delaware court has denied a bid by an injured worker for his former employer to compensate him for out-of-pocket medical cannabis expenses related to treatment for an on-the-job injury, Law360 reports. For the ruling, the judge sided with the employer’s medical expert over the expert provided by the plaintiff.

John Nobles-Roark, the plaintiff, was injured in 1998 while working for a restaurant and in 2000 a state board found his injury to be compensable. Nobles-Roark underwent surgery for the injury, but his condition worsened and in 2003 the board granted him a partial ruling in his disability claim. His former employer tried three times between 2004 and 2007 to end the disability, but the board denied the motion each time.

Nobles-Roark was approved for the state’s medical cannabis program in 2014 after undergoing traditional prescription medications and physical therapy from 2003 to 2018, his physician, Dr. Peter B. Bandera, testified.

Last year, Nobles-Roark filed the petition seeing compensation for his medical cannabis.

Dr. Jason Brokaw, a medical expert certified in pain management, testified on behalf of the employer, arguing that Nobles-Roark is not a good candidate for medical cannabis treatment based on his other concurrent conditions, including chronic obstructive pulmonary disorder.

Judge Andrea L. Rocanelli, agreeing with Browkaw, said that while the state legislature found “that medical marijuana can effectively treat some patients” the medical cannabis law “does not amount to a finding that medical marijuana is ‘reasonable and necessary’ to treat all patients.”

Rocanelli, in denying the claim, said there was sufficient evidence to support Brokaw’s opinion over Bandura’s.

Attorneys for Nobles-Roark told Law360 that they are considering an appeal.

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Former Lawmaker Headed to Prison Over Cannabis, Alcohol, and Opioid Bribes

7/31/2020

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Cheryl Glenn, a former Democratic lawmaker in Maryland representing parts of Baltimore, has been sentenced to two years in prison for taking bribes for legislative favors, including voting to benefit a medical cannabis company, the Star Tribune reports. Glenn had been a staunch supporter for creating social equity in the state’s cannabis industry.

Glenn admitted to accepting $33,750 in five bribes over an 11-month period from 2018 to 2019. The first was a $3,000 payment in exchange for voting favorably to increase the number of medical cannabis cultivation licenses from 15 to 22 and capping processing licenses at 28. She accepted another $20,000 in bribes for requesting a bill be drafted to create new liquor licenses, and another $5,000 bribe for introducing a measure to lower the number of years of experience required for a medical director of opioid clinics.

U.S. District Judge Catherine Blake also ordered Glenn to pay $18,750 in restitution and called the former lawmaker’s actions as more than a “one-time lapse.”

“It was not a momentary giving in to temptation. It was a deliberate scheme to take advantage of her political power and misuse her influence and to break the public trust in exchange for money.” – Blake in her ruling via the Star Tribune

Prosecutors had sought a three-year sentence for Glenn. Her attorney, William Brennan, argued for a sentence of probation and home detention saying he didn’t think incarceration was necessary for his client who “has otherwise lived an exemplary life.”

Prosecutors said Glenn was “instrumental” in creating the state’s medical cannabis industry. The Maryland Medical Cannabis Commission is named after Glenn’s mother, Natalie LaPrade.

Glenn pleaded guilty in January to bribery and honest services wire fraud.

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Democrats Reject Cannabis Legalization in Party Platform

7/30/2020

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The Democratic Party’s platform committee on Monday rejected an amendment to support federal cannabis legalization, Boulder Weekly reports. The vote was 50-106 with three abstentions.

The committee did approve language supporting federal cannabis decriminalization and rescheduling, along with language calling for reforms on how drug-related crimes are prosecuted.

“We will support legalization of medical marijuana, and believe states should be able to make their own decisions about recreational use. The Justice Department should not launch federal prosecutions of conduct that is legal at the state level. All past criminal convictions for cannabis use should be automatically expunged.” – The Democratic Party platform

In the platform, Democrats call substance use disorders “diseases, not crimes” and says the party believes “no one should be in prison solely because they use drugs.”

“And rather than involving the criminal justice system, Democrats support increased use of drug courts, harm reduction interventions, and treatment diversion programs for those struggling with substance use disorders,” the platform states.

The platform follows the lead of Joe Biden – the former vice president who will challenge President Donald Trump in November – who has stopped short of calling for federal cannabis legalization throughout the campaign. Biden has indicated support for legalizing medical cannabis nationwide but, with regard to broad legalization, the nominee said in a February recording on the campaign trail that he was “not prepared” to enact the reforms.

Biden has said throughout the campaign that he supports expunging low-level cannabis crimes. During a Tuesday speech, Biden called criminal records “the weight that holds back too many people of color, and many whites as well,” according to a Marijuana Moment report.

“Under my plan, if a state decides it wants to implement an automated system for the sealing and expunging of certain nonviolent criminal records if a state chooses to do that, the federal government will help put together the process and allow them the money to be able to know how to organize to do that,” he said during his remarks.

The Republican Party platform calls neither for cannabis nor broad criminal justice reforms.

Only the Green and Libertarian platforms include nationwide cannabis legalization. The Green Party will be represented by Howie Hawkins in the general election, while the Libertarian Party nominee is Jo Jorgensen.

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