How Cannabis Dispensaries Can Adjust to Social Distancing

3/18/2020

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Taking the COVID-19 outbreak seriously is of the utmost importance, but many people are facing weeks without a paycheck if their primarily brick and mortar businesses are forced to shut their doors. Cannabis dispensaries have seen a surge in sales as people buy in bulk to prepare for social isolation; however, these purchases may taper off as citizens settle in for a quarantine. Similarly, cannabis is medicine for many people, and to be left without the ability to pick up more could be detrimental to their health. With dispensaries and patients in mind, we’ve put together this list of ideas on how dispensaries may be able to safely continue dispensing legal cannabis products amidst coronavirus concerns.

Obviously, Be Clean

First and foremost, it is essential to disinfect common spaces and products. This means the obvious places like doorknobs, countertops, registers, and high-touch areas. But budtenders should not forget to disinfect the jars and other packaging that product is shipped in. To ensure that every product has been disinfected before going into the hands of a customer, or worse, an immunocompromised patient, a budtender should disinfect every order individually. Staff should also be consistently checking in on their own health, watching especially for signs of fever, sore throat, dry cough, and other commonly listed symptoms of the coronavirus.

Gloves and other equipment are extremely helpful in protecting budtenders and patients alike from the spreading virus.

Online Ordering

Any dispensary that has set up an online menu should start using their online ordering feature. This will allow customers to place an order that can be packaged and disinfected, and then picked up with very little to no interaction or shared space. Enabling an online ordering system can be a great way to deal with a huge flux of customers during this weird time of panic shopping, and it can help us keep from spreading the virus. Before enabling this feature, however, check with local laws and regulations to ensure it is compliant.

Curbside Pickup

For those who can offer it, curbside pickup is an ideal way to serve patients without putting people at risk of contracting or spreading COVID-19. This can be accomplished with or without an online ordering feature, although an online menu will make it much easier. Dispensaries that don’t have an online ordering feature or menu could allocate an employee to budtending and taking orders over the phone. After orders are taken, they can be packaged and individually disinfected and delivered to the customer’s car. It is important to note that this may not be a compliant practice in all states — customers would need to be diligently ID’ed and perfect change is recommended for budtender safety. Curbside pickup will also reduce the number of people in your dispensary at one time, allowing for safe distance between customers to avoid airborne spread.

Cannabis is generally a cash-only industry, so careful preparations should be made when handling cash to prevent the potential spread of the virus.

The Cash Problem

One major problem facing dispensaries is that cash is the main way customers pay for their bud — and cash is notoriously riddled with germs. Specifying one or two employees to deal with cash and requiring them to wear gloves and a face mask can help ensure their safety from the general public. It is important to note that dealing in cash could spread the virus among customers, so advising the use of hand sanitizer, or asking them to wash their hands in a provided restroom after the transaction, could be helpful to ensure your dispensary isn’t spreading the virus.

Educate Your Customers

For the retail dispensaries that have shut down, now is the time to educate your customer base about how to be a safe cannabis consumer during these difficult times. Get with your marketing team and figure out ways to be helpful while also expanding your following. Share educational content about how to avoid spreading the virus, and how patients can help others in their community. Provide people with some entertaining content while they’re cooped up at home for the time being. And keep in mind, if your marketing staff can work from home, let them work at home for goodness’ sake!

Across the globe, people are facing social isolation, “shelter at home” orders, and complete lockdowns. Let’s all do our part to keep society functional while also protecting ourselves and each other from the spread of COVID-19.

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Cannabis Researcher Receives $3.9M to Study Terpenes and Pain

3/18/2020

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The National Institutes of Health National Center for Complementary and Integrative Health have awarded a $3.9 million grant to the University of California, Los Angeles Cannabis Research Initiative to study whether terpenes can reduce the amount of opioid medication a person needs to lessen pain.

The funding will allow Ziva Cooper, research director of the UCLA Cannabis Research Initiative, to study the entourage effect, or how terpenes and THC interact with each other. The researchers will study the terpenes myrcene and caryophyllene, which will be administered both with and without THC “to see whether they help reduce pain on their own, and whether they enhance the pain-relieving effects of THC, while reducing its intoxicating properties,” the university said in a press release. The terpenes will also be examined separately to see whether they decrease pain on their own.

Cooper, who is also an associate professor of psychiatry and biobehavioral sciences at the David Geffen School of Medicine at UCLA, said that chemicals specific to the cannabis plant “may be effective options” at limiting pain “with minimal side effects” but “placebo-controlled studies to explore this urgent area of research are desperately needed.”

“Chronic pain is a significant public health burden and there are few effective treatments that lack the adverse effects that limit use.” – Cooper in a statement

Last year Cooper, who is the first research director for the Cannabis Research Initiative, received a $3.5 million NIH grant to study how the pain-relieving and adverse effects of cannabis and cannabinoids affect men and women differently.

The agency also awarded nine universities federal grants totaling $3 million last year to study the “potential pain-relieving properties and mechanisms of actions of the diverse phytochemicals in cannabis, including both minor cannabinoids and terpenes.” In 2017, the NIH awarded a $3.8 million research grant to New York’s Albert Einstein College of Medicine and Montefiore Health System for a long-term study to investigate whether medical cannabis treatment can help reduce opioid use for adults with chronic pain.

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Cannabis Advocates Call On Governors to Protect Patients During Coronavirus

3/18/2020

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In a letter addressed to governors and medical cannabis program directors throughout the country, Americans for Safe Access has called on officials to protect cannabis patients during the alarming spread of COVID-19, or the coronavirus.

The letter argues that special actions should be taken to protect cannabis patients, “who represent some of the states’ most vulnerable citizens.”

“To help avert another public health crisis,” the letter reads, “we encourage all state programs to be flexible at this time to allow for additional precautions to be put in place to protect the millions of patients nationwide that rely on this medicine.”

The recommendations include making special allowances for delivery or pickup/curbside sales, offering tax relief for cannabis patients and businesses, ensuring that dispensaries and cannabis producers/manufacturers can remain open as “essential businesses” during the nation’s various quarantine efforts, the extension of expiring medical cannabis ID cards to free up doctors and health departments to focus on the coronavirus, and more.

“In light of the current state of COVID-19 and the CDC’s actions, Americans for Safe Access has been monitoring the situation to make sure that medical cannabis patients are not forgotten. We want to ensure that dispensaries are seen as essential businesses that will remain open for patients. We applaud states that have already put emergency precautions into action and we will keep patients and the public updated on any future developments through our www.safeaccessnow.org/COVID-19 response page.” — ASA Founder and President Steph Sherer, in a statement

San Francisco city officials have already ruled that cannabis dispensaries in the city can remain open during the official “shelter in place” order issued there.

Activists in Washington state, meanwhile, are circulating petitions on social media to ask the governor and elected representatives for special consideration for cannabis patients.

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Alabama Senate Approves Medical Cannabis Bill

3/18/2020

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After a five-hour debate, the Alabama Senate passed a full-plant medical cannabis bill in a 22-10 vote last week; the bill, however, faces an uncertain future in the Alabama House.

If passed into law, the bill would allow patients to purchase medical cannabis at 34 access points throughout the state. However, only pills, patches, and topicals would be available under the proposal, the bill’s sponsor Sen. Tim Melson (R) told the Montgomery Advertiser after it passed. 

“There could have been more of an organized effort to slow it down, and I appreciate the body not doing that. We tried to address some very serious things. I’m not taking this bill lightly. It’s a big step for Alabama, and there’s still a long way to go.” — Sen. Tim Melson, in a statement after the vote

Qualifying conditions under the bill include “anxiety, autism, cancer-related illnesses, Crohn’s Disease, epilepsy, fibromyalgia, HIV/AIDS-related nausea or weight loss, post-traumatic stress disorder, sleep disorders, Tourette’s Syndrome and conditions causing chronic or intractable pain. By the end of the debate, another amendment was added to include menopause and postmenstrual syndrome on the list of qualifying conditions, the Montgomery Advertiser reports.

A new commission, “The Alabama Medical Cannabis Commission,” would be set up to administer patient registrations and medical cannabis business licenses. Notably, the Law includes a social justice piece, requiring 25% of the licenses be granted to minority-owned businesses.

“I will say there’s been a lot of concerns about big money, that this was only a way to get people to make money. My whole goal is to get it to patients who need it. Senator Melson continued. 

The bill comes after a year of discussion by the Alabama Cannabis Commission, which was asked to determine if medical cannabis would be right for the conservative state. The commission met three times and listened to both “pro” and “con” arguments for medical cannabis, including testimony from patients and doctors, and eventually produced the legislation. The bill now heads to the Alabama House of Representatives.

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Coronavirus Hits Colorado FlyHi Festival & New Zealand Medcan Summit

3/18/2020

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Two more cannabis events have been impacted by the global coronavirus outbreak as Auckland, New Zealand’s Medcan Summit and Denver, Colorado’s FlyHi 420 Festival have announced postponement and cancellation, respectively.

The Medcan Summit, a medical cannabis-focused conference, was set for today and tomorrow at the SkyCity Convention Centre but organizer Dr. Zahra Champion told Sun Media that the event would be rescheduled for later this year “as the future of large events and international travel becomes clear.” About 500 delegates were expected to attend the event, which was scheduled for this month as the nation’s medical cannabis program is set for an April 1 rollout.

“This decision was not taken lightly. However, in the interest of the health of our attendees, speakers, sponsors and staff – and due to the travel restrictions announced on Saturday that are affecting a number of our speakers and attendees – postponement is the right decision.” – Champion to Sun Media

Organizers of the FlyHi festival told The Know that “there are no immediate plans to reschedule” the April 20 event. FlyHi was a free event planned for the Denver Civic Center, headlined by rapper Lil John.

As municipalities and counties issue shelter in place orders and states limit the number of people who can gather in one place, cannabis-centric events throughout the world have announced postponement or cancellation, including Michigan’s long-running Hash Bash; the popular NoCo and Southern Hemp Expo events in Denver and Nashville, Tennessee; New England-focused NECANN in Boston, Massachusetts; and Barcelona, Spain’s epic Spannabis.

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Dispensary Sales Surge Amid Social Distancing

3/17/2020

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As U.S. citizens begin to prepare for social isolation efforts aimed at reducing the spread of COVID-19, or the coronavirus, dispensaries in adult-use states have reported surges in both online sales and foot traffic. News outlets from around the country have displayed empty grocery store shelves as Americans stockpiled toilet paper and non-perishables, but food and supplies are not the only items flying off store shelves.

“After they filled their pantries, it seems consumers went out and filled their stash boxes too,” said Liz Connors, Director of Analytics at Headset.

“Sales of adult-use cannabis in Washington were up 23% on Friday, 14% on Saturday, and 33% on Sunday (over prior week). This was driven by a modest increase in total baskets (about 6% increase in tickets) and a large increase in average basket. Average baskets on Sunday were $33.70 before taxes, up 22% over the prior week and 28% compared to baskets in Jan and Feb of this year. The increase in average basket size was driven by increases in stock-up baskets with over 21% of baskets being greater than $50 (before taxes) compared to only 16% in the prior week.” — Connors, in a statement

Leafly reports that some Washington dispensaries have switched to a mandatory pre-order system to cut back on the length of customers’ stays, while the Have a Heart dispensary in Seattle is offering a 10% discount on all online orders. Cannabis delivery services in California, meanwhile, are reportedly booming — delivery options are particularly popular in the San Francisco Bay Area, where officials from six counties have issued a mandatory “shelter in place” order for the next three weeks.

Brick-and-mortar sales were also up in California, but not as drastically — residents in and around Boston, Massachusetts, however, flocked to cannabis shops to prepare for a potential quarantine.

According to the report, the coronavirus dispensary rush is somewhat reminiscent of the usual 4/20 or Thanksgiving weekend spikes in retail cannabis sales.

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Drug Possession No Longer Felony in Colorado

3/17/2020

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Colorado Gov. Jared Polis (D) has signed HB19-1263 into law, which makes the possession of four grams or less of any Schedule I through IV controlled substance a drug misdemeanor. There are some stipulations, however, such as any possession of gamma-hydroxybutyrate (GHB), four- or more time offenders of possession of Schedule I and II substances, or former charges for any amount of Schedule III, IV, or V substances will be given a level 4 drug felony.

The bill also puts new cannabis guidelines in place: possession of over 6 ounces of flower or 3 ounces of concentrate are to be classified as a level 1 drug misdemeanor. Possession of 3 ounces or less of concentrates is a level 2 drug misdemeanor. A petty offense of no more than 2 ounces of marijuana, however, will not lead to arrest — formerly, possession of these amounts would have been a class 4 felony.

Those who are convicted of level 1 misdemeanors could be subject to 180 days in county jail or 2 years of probation. Level 2 misdemeanor convictions will receive 120 days in jail or a year in probation. In both cases, violation of probation will lead to serving time in county jail. These sentences overall reduce the draconian classifications and sentences for drug violations that were formerly in place.

The bill also highlights a community substance use and mental health services grant program, which will provide grants to counties for the purpose of building strategies like mental health treatment services, diversion programs, and substance use services to reduce the number of people in county jails. Counties can be eligible for these grants if they build these programs in collaboration with community-based organizations, law enforcement agencies, and public health agencies. They have appropriated $123,139 from the general fund to go to the judicial department and probations programs.

Along with these positive outcomes, the Joint Budget Committee released a report claiming that savings from the enactment of this bill could be anywhere from $8.6 million to $13.7 million over the next five years, the Denver Post reports.

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Canopy Temporarily Closes All Dispensaries Due to Coronavirus

3/17/2020

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Canopy Growth Corp. is temporarily closing all of its retail stores throughout Canada today at 5:00 p.m. due to the coronavirus outbreak. The closures will affect all 23 corporate-owned Tokyo Smoke and Tweed retail locations in Newfoundland, Saskatchewan, and Manitoba, along with the Tweed Visitor Centre in Ontario.

CEO David Klein indicated the company would move all sales online.

“We have a responsibility to our employees, their families, and our communities to do our part to ‘flatten the curve’ by limiting social interactions. This is a big decision but it was also an easy one to make – our retail teams are public-facing and have been serving an above-average volume of transactions in recent days. Given the current situation, it is in the best interest of our teams and our communities to close these busy hubs until we are confident we can operate our stores in the best interest of public health.” – Klein in a press release

Medical cannabis patients can still use Spectrum Therapeutics to purchase medical cannabis from Canopy.

Canopy is the first Canadian retailer to announce a move to online-only sales but the spread of the coronavirus has already had an impact on the cannabis industry, including a decline in the number of vape cartridges imported into the country from China; the postponement or cancellation of cannabis trade shows, conferences, and events; and reports of long lines at dispensaries as many cities and towns move toward social distancing and the closure of non-essential businesses.

In Canada, licensed producers are allowed to sell cannabis online; however, in the U.S. delivery and online sales laws vary from state to state.

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Washington State Approves Cannabis Social Equity Program

3/17/2020

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Washington lawmakers have approved a bill to implement a social equity program in the state’s cannabis industry, High Times reports. Under the law, which still requires the signature of Gov. Jay Inslee (D), regulators at the Liquor and Cannabis Board would be allowed to award canceled, revoked, or forfeited licenses to applicants from communities most disproportionately impacted by the cannabis enforcement.

Paula Sardinas, of the Commission on African American Affairs, told High Times that while the bill is a good start toward social equity, the state needed to reform the LCB after an independent review of the agency in December found it acted more like law enforcement than a regulatory body and needed a culture change.

Aaron Barfield, an activist with Black Excellence in Cannabis, called the LCB culture “toxic.”

“People are concerned that the LCB will hand them a license with the right hand and claw it back with the left.” – Sardinas to High Times

Under the measure, the social equity licenses carry an application fee of $250 and a $1,480 licensing fee. The bill defines prospective applicants as “individuals who have been arrested or incarcerated due to drug laws, and those who have resided in areas of high poverty, suffer long-lasting adverse consequences, including impacts to employment, business ownership, housing, health, and long term financial well-being.” It also covers “family members, especially children, and communities of those who have been arrested or incarcerated due to drug laws.”

Other specific regulations associated with the bill have not yet been determined.

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Vermont’s Castleton University Launches Cannabis Certificate Program

3/17/2020

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Castleton University in Vermont is launching a Cannabis Studies Certificate program that will cover the business, cultivation, history, and culture of cannabis.

Vermont’s Castleton University has launched a Cannabis Studies Certificate program; it is the first higher education institution in the state to offer a full cannabis-centric program, VT Digger reports. The program includes three courses: Canna-Business; Cannabis, Cultivation and Care; and Cannabis, Culture and Consciousness, along with an internship component.

There are about a dozen students enrolled to complete the program, which includes cannabis industry economics, sociological and anthropological topics, and the history of the plant and policies.

Philip Lamy, a Castleton professor who helped develop the program, called it “unique.”

“Most of what I’ve seen across the country is colleges and universities focusing on cultivation, CBD production and the medicinal effects of marijuana but very few that are looking at the history, the sociology, the business aspects of it. We’re doing all of it.” – Lamy to VT Digger

The cost of each course in the program runs about $1,500 for in-state students and full-time students must be enrolled in 12 non-Cannabis Studies classes in order to receive full-time federal student financial aid, the report says.

Some faculty have voiced concerns over the program, namely that it doesn’t have an individual or public health component.

Katy Culpo, an associate professor in the Department of Health, Human Movement and Sports, said that the course offerings in the program “needed balance” and that not including the warning messaging would be a “huge mistake.”

“If it was truly a studies program of any substance – alcohol, tobacco, heroin, cannabis – you would need a least one course that really takes a hard look at what we know and don’t know about that substance, whether that’s from a pharmacological perspective, or a psychological, social, biological perspective,” she said in an interview with VT Digger.

Lamy indicated he would consider adding those topics as the program expands.

Adult cannabis use and possession were legalized in Vermont in 2018 but the law did not include taxed-and-regulated sales. Last month, House lawmakers approved a plan to legalize an industry. That measure is currently in a conference committee to align amendments before it moves to Republican Gov. Phil Scott’s desk for final approval.

Colleges and universities in states with both adult-use and medical cannabis legalization have rolled out a variety of cannabis education programs alongside their traditional courses.

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NFL to End Suspensions for Positive Cannabis Tests

3/16/2020

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The National Football Association and its Players Union have approved a new collective bargaining agreement that includes reduced penalties for positive cannabis tests, the Sporting News reports. Under the agreement players will no longer be suspended for positive tests and the threshold for failing a test is now 150 nanograms of THC per milliliter of blood, up from 35 nanograms.

Under the new rules, if a player tests positive for cannabis during the two-week training camp their test is reviewed by a board of medical professionals appointed by the NFLPA and the league who determine whether the player needs treatment for drug abuse. That two-week window for cannabis testing was shortened from four months, which means that less players will be tested for cannabis.

Under the league’s old rules, 10 players per team were randomly selected to be tested each week during the regular season and a first positive test meant a referral to the substance abuse program. A second violation led to a two game check fine, while a third violation was for four game checks. A fourth violation resulted in a four-game suspension, a fifth violation was a 10-game suspension, and a sixth violation led to a one-year suspension.

Previously, the NFL had the strictest cannabis-related rules in professional American sports and with the rule changes just the National Basketball Association has a drug policy among the four major sports leagues in the U.S. that includes suspensions for cannabis use.

Last year the NFL and NFLPA announced the creation of a Joint Pain Management Committee that reportedly would include cannabis and cannabinoids as part of its research into pain management and alternative therapies. Nine of the leagues 32 teams play their home games in states that have legalized cannabis for adult use.

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Teen Cannabis Use Down 50% in Canada Post Legalization

3/16/2020

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Statistics Canada’s National Cannabis Survey found the number of teens aged 15 to 17 who use cannabis has fallen from 20 percent to 10 percent in the nation post-legalization, the Calgary Sun reports. The survey did not find any change in cannabis use among adults 18 to 24-years-old. Which remained at 33 percent from 2018 to 2019.

Michelle Rotermann, Statistics Canada senior analyst, said that while the survey suggests cannabis use among teens fell in the year following nationwide legalization, attributing the change to ending prohibition would require a more in-depth analysis of the individuals surveyed.

“The National Cannabis Survey uses a cross-sectional design, which has been collected every three months from independent samples across Canada. This allows us to look at associations and change at the population level but not changes experienced by individuals.” – Rotermann to the Sun

Nationally, the survey found a 2 percent increase in national cannabis use following the 2018 reforms, to 17 percent.

A U.S.-focused study last year found an 8 percent decline in the number of high schoolers in states with recreational cannabis legalization who have used cannabis within the last 30 days, and a 9 percent drop among teenagers who have used cannabis 10 times in the last month, suggesting that cannabis use among youth may decline following legalization.

Rotermann warned that the numbers of teens using cannabis could spike following ‘Cannabis 2.0’ legalization which allowed the sale of edibles, concentrates, and other so-called ‘alternative’ cannabis products.

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Iowa Poll Finds Majority Support for Adult-Use Legalization

3/16/2020

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A Des Moines Register/Mediacom Iowa Poll found 53 percent of Iowans support recreational cannabis legalization in the state – the first time a poll has found majority support among Iowa residents.

Pollsters Selzer & Co. started asking about cannabis legalization in February 2013 and, at that time, found just 29 percent supported legalizing recreational cannabis in Iowa. Last year, the poll found support and opposition for the reforms even at about 48 percent. In 2017 and 2018, about 40 percent were in favor with about 58 percent opposed in both years. In 2016, legalization had 34 percent support, with 63 percent opposed; 2014 say the widest gap with 28 percent for and 69 percent against.

A supermajority – 75 percent – of individuals 35 and younger supported legalization ion the state, the poll found, along with 56 percent of Iowans aged 35 to 54. Support dropped to 34 percent among those 55-and-older. The reforms were supported by a majority of Democrats (67 percent), independents (58 percent), the non-religious (79 percent), people who make less than $70,000 a year (59 percent), Catholics (53 percent),  and people who live in cities (60 percent), suburbs (58 percent) and towns (53 percent).

Just 44 percent of rural Iowans supported the reforms, along with 42 percent of Protestants, 30 percent of evangelicals, and 37 percent of Republicans.

Another 81 percent of respondents supported expanding the conditions that qualify for the state’s medical cannabis program. Last week, House lawmakers approved a bill that would expand the list to include chronic pain, post-traumatic stress disorder, and “severe, intractable autism with self-injurious or aggressive behaviors,” the report says. That bill, which also allows patients to purchase 4.5 grams of THC-rich cannabis in a 90-day period, still requires Senate approval.

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Study: Cannabis Effective Against Fibromyalgia Symptoms

3/13/2020

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Researchers at the Luigi Sacco University Hospital in Milan, Italy have published new research that suggests medical cannabis can be effective in the treatment of fibromyalgia symptoms, the Cannabis Exchange reports.

The study, published in Clinical and Experimental Rheumatology 2020, recruited 102 fibromyalgia patients who were given two types of cannabis oils, one rich in THC and the other a balanced blend of THC and CBD. Participants were monitored for six months and were asked to measure the severity of their symptoms — which generally include fatigue, anxiety, depression, and prolonged pain — throughout the study using the Fibromyalgia Impact Questionnaire Revised (FIQR).

Some patients experienced significant improvement with their symptoms: 44% of patients reported a significant improvement in sleep quality, 33% reported improvements in their FIQR scores, 42.4% said the treatments helped with anxiety, and 50% said it helped with depression. Additionally, 47% of participants said they reduced or ceased other analgesic treatments during the study. Some patients (54.5%), however, did report a worsening of their fatigue symptoms.

“This observational study shows that adjunctive MCT [Medical Cannabis Treatment] offers a possible clinical advantage in FM [Fibromyalgia] patients, especially in those with sleep dysfunctions. The clinical improvement inversely correlated with BMI. The retention rate and changes in concomitant analgesic therapy reflect MCT efficacy of the improved quality of life of patients.” — Excerpt from the study’s conclusions

Notably, most of the study participants (like most fibromyalgia patients, in general) were women.

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Maine Committee Approves New Rules for Cannabis Caregivers

3/13/2020

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Maine’s legislative Health and Human Services Committee has approved a cannabis caregiver regulation bill that would require potency testing and labeling but does not include provisions backed by the state Office of Marijuana Policy’s that included a ban on small extraction labs, federal background check requirements, and a limit on plant sizes, the Portland Press Herald reports.

Dawson Julia, a medical dispensary operator, said the testing requirement would drive up prices for small-scale caregivers, many of which sell less than $500 worth of cannabis a week. Under the current regime, plants grown by caregivers only need to be tested when they make an advertising claim, such as THC amounts or being pesticide-free.

“This is standard procedure from the corporate scum that continually use our government as a weapon to destroy the small competition. Maine will become just another feeding ground for the blood-sucking vampires of corporate cannabis.” – Julia to the Press Herald

The measure also includes a proposed fine schedule for caregivers who willfully flout regulations, but they did cut the fines in half from what they were in the original version of the bill.

Maine has about 2,600 medical cannabis caregivers who sold 76.5 percent – or about $85.3 million – of all cannabis sold in the state last year. The reform bill still needs approval from the Legislature.

Maine voters approved cannabis legalization in 2016 but regulations had been vetoed twice by then-Gov. Paul LePage (R) until it was overridden by the legislature. In October, officials anticipated recreational sales would begin this month but last week pushed that prediction to June.

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Cannabis Legalization Heads to Parliament In Lebanon

3/13/2020

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Lebanon’s draft cannabis legalization law has been sent to its Parliament, but the measure would only legalize products that contain less than 1 percent THC, Al Jazeera reports. The measure also calls for enhanced penalties for breaking cannabis-related laws and prohibits anyone with a criminal record from getting a cannabis license or working in the industry.

Karim Nammour, a lawyer with Legal Agenda who specializes in drug policy, told Al Jazeera that the bill was “an opportunity missed” and that lawmakers “failed to take a holistic approach” to the reforms.

Sandy Mteirik, a drug policy development manager at Skoun, a Lebanese nongovernmental organization focused on drug rehabilitation and advocacy, said the bill is “not what the farmers of Bekaa want.” The Bekka Valley region is home to the most cannabis cultivation in Lebanon.

“There is no clear mechanism to integrate the existing illegal market into the legal market. You can’t just ignore the implications and consequences of criminalizing drug use and say this new market is the priority.” – Mteirik to Al Jazeera

Prime Minister Hassan Diab said that the nation’s cannabis would likely be grown by “big companies” and “other farmers” and anticipated the sector would be “big business.” Diab has previously expressed support for amnesty for some cannabis crimes; between 3,000 and 4,000 people are arrested every year for drug crimes – not just cannabis – in Lebanon.

The draft law would create a commission with a regulatory authority that would issue licenses for importing seeds and clones, creating cannabis plant nurseries, cultivation, manufacturing, and exporting. Licenses could be awarded to Lebanese pharmaceutical companies, industrial fiber, oil, and extract companies, and foreign cannabis companies. Licenses would also be available to specialized agricultural co-operatives established in the country, Lebanese citizens such as farmers or landowners, and labs and research centers permitted to work with controlled substances.

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Michigan’s Hash Bash Postponed Due to Coronavirus

3/13/2020

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Michigan’s long-running cannabis celebration, Hash Bash, has been postponed due to the coronavirus outbreak, organizers announced yesterday. It’s the latest cannabis-centric event to be postponed or canceled as the global illness spreads.

Nick Zettell, the event’s organizer, made the announcement on Facebook, saying the decision was made in accordance with the state’s declared state-of-emergency and the move by the University of Michigan to cancel all events with more than 100 planned attendees.

“This was not an easy decision to make. In fact, it was actually made much easier by the University’s sensible and proactive decision to cancel all events [more than] 100 People.  Postponing this event is the correct decision, but it carries an emotional weight for myself, the HB Planning Committee, and all of our participants and attendees.” — Zettell in a March 12 Facebook post

Zettell noted that the organizers have “for years…championed the sick and ailing” and that it was important to the group to “respect the health and safety” of the community and country.

“These risk [sic] are not to be overlooked and mitigating the spread of COVID-19 is our responsibility as responsible cannabis users,” Zettell wrote. “This is difficult for all of us, but trust that we are doing the right thing. I have a lot more to say on the matter, and a lot more thinking to do, but believe me when I say this: we will be working very, very hard to make sure the next Hash Bash is the biggest and best ever.”

A new date for the event – which would have been the 49th iteration – has not been announced. It had been scheduled for April 4.

Over the last two weeks, the spread of the coronavirus has led to the postponement of Expo West, CannTech and PsyTech, NoCo Hemp Expo and the Southern Hemp Expo, the conference for the National Cannabis Risk Management Association, NECANN, and Spannabis.

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House Committee Approves Medical Cannabis for Veterans

3/12/2020

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The House Veterans’ Affairs Committee has advanced two separate pieces of legislation that address veterans’ access to medical cannabis, Marijuana Moment reports.

The Veterans Equal Access Act, a proposal put forward by Oregon Rep. Earl Blumenauer (D), would let VA doctors make medical cannabis treatment recommendations in states where medical cannabis access is legal. The VA Medical Cannabis Research Act, proposed by California Rep. Lou Correa (D), would require the VA to investigate the effectiveness of medical cannabis in treating PTSD and other afflictions commonly faced by combat veterans.

The veterans access proposal was advanced on a 15-11 vote, while the research bill was approved in a voice vote.

“Today was a monumental day for our veterans. We have been working for years to reform this counterproductive policy that forces veterans outside of the VA to receive legal medical cannabis treatment for chronic pain and PTSD. This is the culmination of the tremendous work of our movement, but we will not be finished until this becomes the law of the land. We must reform our federal cannabis policy.” — Rep. Earl Blumenauer, in the report

Rep. Correa, meanwhile, said that cannabis could be a long-sought alternative to opioids and other dangerously addictive prescription medications.

“Many studies from around the world show cannabis’s effectiveness for treating PTSD and chronic pain,” Correa said. “It’s time we did the research and got our vets the medications they need. We owe it to every veteran to never stop looking for ways to treat their scars.”

The bills’ appearance in the committee represented the first markup of federal cannabis legislation in 2020. Similar proposals were discussed and scheduled for a vote last year, but those votes were ultimately called off.

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Creso Pharma Hires Former Canopy Growth Executives

3/12/2020

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Creso Pharma Limited (ASX:CPH) has appointed two former Canopy Growth Corp. (TSX:WEED, NYSE:CGC) executives to the senior management team of its wholly-owned Mernova Medical Inc. in Nova Scotia, Canada.

The pair are former employees of Canopy Growth Corp, the world’s largest cannabis company by market capitalisation, currently capped at C$6.8 billion, having once hit the heights of C$24 billion.

Mr. Jack Yu has been appointed as managing director and brings expert-level knowledge of cannabis cultivation and production from 25 years of practical experience growing cannabis, including nine years of consulting for licensed Canadian medicinal cannabis growers.

Mr. Yu’s experience includes working for Canopy Growth Corp. (TSX:WEED, NYSE:CGC), the world’s largest cannabis company by market cap in the position of Production Manager.

He also held the role of Interim Cultivation Manager for Canopy’s Newfoundland, Edmonton, Eastern Canada and Scarborough facilities, and previously held the position of Master Grower for MedReleaf Corp.,  which is now owned by Aurora Cannabis Inc (TSE:ACB).

Furthermore, he consulted for Health Canada license applicants throughout the process to attain licenses for cultivation, production and sales of medicinal cannabis in Canada.

As Managing Director, Mr. Yu will replace outgoing Managing Director Mr. Bill Fleming, and will be responsible for managing all operations at Mernova and will work closely with the Creso Pharma Board.

Isaac Allen has been appointed Vice President.

Mr. Allen has significant expertise in optimising business operations from executive positions in industries spanning cannabis, insurance, technology and entertainment.

He was formerly National Operations Process Improvement Manager at Canopy, where he developed and executed a number of business strategies and efficiency initiatives.

He is also the founder and former chief executive of a disruptive insurance technology start-up and has held senior executive positions at various companies.

Mernova close to achieving European Union GMP certification

Mernova continues to work towards securing European Union Good Manufacturing Practice (GMP) certification. 

Once this certification is obtained, Creso Pharma will be able to begin sales of high-quality cannabis flower and oil into the established and growing consumer markets in countries such as Germany and Switzerland.

Mernova is also continuing to ramp up production and sales in North America, with its latest deal closing last week at a value of approximately C$410,000.

The sale was comprised of varying quantities of four strains of Mernova’s high-quality cannabis flower, and Creso Pharma has received the full purchase amount from the buyer.

For the full year 2019, Mernova’s revenues were AU860,000 (C$761,000), highlighting that the recent sale represented more than 60% of full-year revenues in 2019, making for an excellent start to the year. 

The facility is scaling up to full production capacity which Creso Pharma expects it to achieve this year.

Highlighting the diversified experience the new executive appointments bring to Creso Pharma, chief executive Miri Halperin Wernli said, “We are looking forward to Mr. Yu and Mr. Allen joining the leadership team at Mernova.

‘’Both of them bring practical experience from a variety of fields, not only limited to the cannabis industry.

‘’We believe that they will be invaluable to Mernova and Creso Pharma as we continue to ramp up production and sales.’’

Mernova vice president Isaac Allen said, “Mernova is emerging to be a promising supplier of premium quality flower and oil to customers across the globe, and a compelling opportunity for investors looking to gain exposure to a first-class cannabis production facility. ’I am confident that I will be able to help Mernova further optimise its business operations as it moves closer to obtaining its EU GMP certification.”

Mernova Managing Director Jack Yu also pointed to his relevant attributes in terms of gaining European Union certification in saying, “I am excited to be taking Mernova forward as it looks to scale up its production capacity this year.

“I believe my knowledge of cannabis cultivation and production, as well as my experience in working with Health Canada will prove a real asset to Mernova as it looks to secure the certification that will allow it to commence sales in Europe.”

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Study: Legalization Caused $130M Revenue Boost at Denver Hotels

3/12/2020

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A Penn State University study found that cannabis legalization led to an immediate increase of $130 million in revenue for hotels in Denver, Colorado. Researcher John O’Neill, a hospitality management professor at Penn State who conducted the study, said the effect only lasted about a year and was also partly due to an increase in post-legalization hotel prices.

“We found that Denver hotels were able to charge and receive higher prices for hotel rooms following recreational marijuana legalization, and also found increased visitation to the Denver area with growth in occupied hotel rooms of 9 percent in 2014, higher than any other year we studied, resulting in positive economic impact.” – O’Neill to Penn State News

The study also found the positive effects were more pronounced in tourist-oriented, lower-priced hotels than in higher-priced hotels that typically cater to commercial travelers. Additionally, those positive effects were unrelated to the distance between hotels and recreational dispensaries but “hotels generally located in the neighborhoods and areas of the city where dispensaries are located experienced the most positive effects,” O’Neill said in the report.

O’Neill explained that while the study was conducted during a period of economic growth overall in the U.S, Denver‘s growth after legalization “was above and beyond what would have been otherwise expected without legal recreational marijuana.”

“In addition, its growth was greater than comparable cities, such as Albuquerque, Austin and Salt Lake City. Also, its growth was greater than national averages,” he said. “I believe the difference in hotel revenues was due to the legalization of recreational marijuana in Denver.”

The study, which was conducted using STR hotel data, geo-coordinates and opening dates of recreational dispensaries, appeared in the Journal of Real Estate Literature.

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Idaho House Committee Blocks Hemp Legalization Bill

3/12/2020

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Idaho’s House State Affairs Committee has voted to hold a hemp-legalization bill, likely killing the measure for this year, the Capital Press reports. Lawmakers in the committee have the authority to reintroduce the measure, which was approved by the Senate last month, but it’s unlikely to do so this session.

While the measure would have authorized hemp production in the state, it excluded CBD legalization.

Idaho had become a flashpoint for hemp policy following federal legalization in 2018 after law enforcement agencies in the state continued arresting truckers shipping hemp through the state, which remained a violation of Idaho law.

Last November, Republican Gov. Brad Little signed an executive order to explicitly allow transportation of out-of-state hemp shipments through the state. Little called it “a stop gap measure” until lawmakers could develop a “permanent regulatory framework” around the plant. Little’s executive order only allows hemp to be transported “on interstate highways and in the immediate vicinity of an interstate highway.” In May the U.S. Department of Agriculture issued a memo allowing interstate hemp transport, but Idaho police continued to make arrests despite federal law and the USDA guidance.

Opponents of Idaho’s hemp legalization argued that the reforms would set the stage for recreational cannabis legalization and that other states have found it difficult to differentiate between hemp and THC-rich cannabis, which makes prosecuting cannabis crimes problematic for law enforcement officials.

Only Idaho, South Dakota, and Mississippi have not legalized hemp cultivation. The USDA released federal hemp production rules last October.

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New Mexico Supreme Court Deliberates Tax-Free Medical Cannabis

3/12/2020

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New Mexico officials are asking the state’s Supreme Court to determine whether or not medical cannabis products are exempt from gross receipts tax, like prescription drugs, according to New Mexico Political Report. On Monday, the state Attorney General’s office filed a petition with the court on behalf of the state Taxation and Revenue Department asking for clarification on the issue.

The filing stems from a 2014 case when licensed medical cannabis producer Sacred Garden asked the tax department for a refund on the gross receipts tax the company paid that year. That request was denied by the agency but the state Court of Appeals ruled in favor of the cannabis company, deciding that medical cannabis qualifies for the same tax exemption as prescription drugs, the report says.

In January, the state Court of Appeals ruled that a doctor’s recommendation to use cannabis is essentially the same as a traditional prescription drug. The court also argued that when the Legislature was considering the medical cannabis law, state analysts did not consider tax revenues from medical cannabis sales and, therefore, intended it to be tax-deductible, according to the report.

Special Assistant Attorney General Cordelia Friedman argued in the petition that because federal law prevents physicians from writing cannabis prescriptions it does not fall under the same tax-exempt category as prescription drugs in the state. Friedman argues that the logic in the Appeals Court decision is flawed since neither those who drafted the bill, nor lawmakers, explicitly included tax exemption language in the measure.

“The term ‘prescription’ does not appear in the Act or the regulation promulgated to provide guidance for individuals wanting to obtain ‘registry identification cards’ to receive medical marijuana.” — Friedman in the petition, via New Mexico Political Report

Friedman also argues that there is “no discernible benefit to those in medical need when Sacred Garden receives its requested refund predicated on past sales where it undisputedly charged gross receipts tax to its customers with no obligation to refund it to those customers.”

Following the January Appeals Court ruling, several cannabis dispensaries in the state announced they would no longer charge taxes. If the Supreme Court sides with Sacred Garden, they would be forced to pay back about $24 million in tax revenues paid by the state’s medical cannabis producers.

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California Cannabis Tax Revenues Pass $1 Billion

3/11/2020

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Cannabis-derived California tax revenues have reached $1 billion in just over two years since the launch of recreational sales, the Orange County Register reports. Most of the funds have been used to cover cannabis industry regulatory costs and those associated with the cleanup of public lands harmed by illegal grows, cannabis research, and childcare for low-income families.

Growth, however, has been lower than expected in the nation’s largest cannabis market; slowing in the fourth quarter to 1.5 percent down from 15.5 percent in previous quarters, according to Department of Tax and Fee Administration figures outlined by the Register. The first three months of legalized sales in the state brought in $72.6 million in tax revenues to the state, while the last three months of 2019 brought $172.7 million. California officials had expected to raise $1 billion a year from cannabis industry-derived taxes.

According to the report, 75 percent of cannabis sales in the state still happen illegally as prices at licensed dispensaries are 30 percent to 80 percent higher than prices in the illicit market. California’s tax structure includes a 15 percent excise tax, regular state sales taxes, a cultivation tax by weight, and municipal taxes which can be as high as 20 percent. On January 1, officials actually raised wholesale taxes on flower, leaf, and plants. Regulators said those tax hikes were in line with inflation.

Last October, Gov. Gavin Newsom (D) signed a bill that would override section 280E of the Internal Revenue Service Code allowing state-approved cannabusinesses to take normal business deductions. Lawmakers have introduced bills to eliminate the cultivation tax and temporarily lower the excise tax; however, similar bills have previously failed in previous sessions.

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San Francisco May Consider Freezing Cannabis Licensing

3/11/2020

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While cannabis sales in San Francisco have increased since statewide legalization in 2018, the number of licensed dispensaries has also increased and their average individual sales are shrinking. As a result, officials may consider a freeze on cannabis licensing in the city, the SFist reports.

Despite San Francisco’s increasing rate of cannabis sales, businesses are not benefiting — and there are currently 133 pending applications for new dispensaries, including some social equity applicants.

“You can think of it as the pie getting bigger, but the average slices getting smaller,” Jeff Pomrenke, a controller’s office analyst, told the SF Chronicle. Specifically, individual dispensary sales have dropped on average from $6.3 million to $3.4 million, likely due to the influx of new dispensaries.

When California voters opted to legalize adult-use cannabis in 2016, business owners and advocates warned against burdensome regulations and high taxes but officials went on to install one of the strictest and most heavily taxed state-legal cannabis marketplaces. Today, despite having legalized, the state’s unregulated market continues to flourish, particularly in cities where cannabis prices are driven up by additional regulations, local taxes, and high costs of living.

“San Francisco’s retail cannabis industry is still in its infancy, but it’s clearly facing some growing pains,” said city Supervisor Rafael Mandelman.

“Regulatory requirements are tough for small businesses generally, and the additional burdens placed on cannabis businesses are particularly challenging. As policymakers, we clearly need to work with equity applicants, industry stakeholders and the Office of Cannabis to shorten permit approval timelines and address market oversaturation.” — San Francisco Supervisor Rafael Mandelman, via the SF Chronicle

According to a 2019 audit by the United Cannabis Business Association, there were some 2,835 unlicensed dispensaries and delivery services in California and just 873 licensees.

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