Oregon Raises THC Limits for Hemp Extracts

2/10/2020

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The Oregon Liquor Control Commission has approved a rule allowing hemp concentrates, extracts, or tinctures to contain up to 50 milligrams of total THC per container in order to allow a use for industrial hemp that contains THC levels over federal and state limits of 0.3 percent, the Register-Guard reports. Previously, such items were limited to no more than 10 milligrams total per container.

Sun God Medicinals CEO Brie Malarkey said the rule change will allow the company to again sell some of its products that were effectively banned by an OLCC rule change last year.

“Every single one of our tinctures or droppers are back in business, because we were only a few milligrams over the 10 milligrams limit with our products. What it allows us to do is stay true to whole plant herbalism. We can maintain being certified organic because the naturally occurring levels of THC that are present in the hemp plant would still be allowed in there.” – Malarkey, to the Register-Guard

OLCC Hemp and Processing Technician Steven Crowley explained that tinctures, extracts, and concentrates in the state’s recreational market may contain up to 1,000 milligrams of THC per container and the new rules “are still only a fraction of what the equivalent marijuana item can have.”

He added that “most whole hemp tinctures seem to contain 20 milligrams to 40 milligrams THC along with several hundred milligrams of CBD” and the rule change will allow those items to be sold in 1-gram units. Hemp tinctures were also constrained by the 10 milligrams per container limit.

Hemp edibles in Oregon remain capped at 10 milligrams per unit and 1 milligram per serving.

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Officials Approve Colorado’s First Cannabis Degree Program

2/10/2020

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The Colorado Commission on Higher Education has approved a bachelor of science in cannabis biology and chemistry at Colorado State University-Pueblo, the state education department announced on Friday. The degree program is the state’s first related to cannabis.

Students enrolled in the program – which will be part of the university’s chemistry department – can choose either a track focused on natural products or an analytical track focused on chemistry, according to a CNN report. The natural products route is focused more on the biology of cannabis, including courses on neurobiology, biochemistry, and genetics. The analytical chemistry track focuses on chemical compounds. However, despite cannabis’ legal status in Colorado, students won’t be able to work with THC-rich plants due to federal laws and the fact that CSU gets federal funding. The lab is permitted to cultivate industrial hemp and CBD-rich plants.

CSU-Pueblo estimates as many as 60 students could be enrolled in the major after four years.

David Lehmpuhl, dean of CSU-Pueblo’s College of Science and Mathematics, described the program as a “rigorous degree geared toward the increasing demand coming about because of the cannabis industry.”

“Hemp and marijuana has really come to the forefront in a lot of economic sectors in the country. We’re not pro-cannabis or anti-cannabis. What we’re about will be the science and training students to look at that science.” – Lehmpuhl, to the Denver Post

CSU is also planning on opening a new research center in the spring at their Fort Collins campus dedicated to studying cannabinoids. That center will be at least partially funded by a $1.5 million donation from Panacea Life Sciences CEO Leslie Buttorff.

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Nepal Lawmakers Consider Cannabis Legalization

2/10/2020

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Lawmakers from Nepal’s ruling Communist Party have introduced legislation to legalize cannabis, the Associated Press reports. Birod Khatiwada, a member of the party, said the country’s terrain is suitable for cannabis cultivation and would be a boon to the agricultural economy.

“Legalizing marijuana will help the poor farmers and since most of the Western world, which was reason for making it illegal in the first place, have already ended the prohibition, Nepal should also lift the ban.” — Khatiwada, to the AP

The legislation, which is backed by 46 Communist lawmakers, would also ban the import of alcohol, according to the Press Trust of India.

“Marijuana has multiple uses,” Khatiwada, who represents the region that produces the most cannabis in Nepal, said in the PTI report. “It also helps earn foreign currencies and produce medicines.”

Gokul Baskota, spokesperson and Minister for Information and Communications Technology, said the government had yet to take any steps on the measure, which must be debated on and approved by Parliament.

Cannabis has been banned in Nepal since 1973, around the same time that anti-cannabis laws took hold throughout the world. The lawmakers argue that over 65 countries – including the U.S., Canada, and Germany, who led the movements for cannabis prohibition in the 1970s – have already legalized it.

Canada legalized cannabis for adults in 2018, while Germany approved federal medical cannabis legalization in 2017. Federally, the U.S. continues its ban on all cannabis use; however, 33 U.S. states have legalized medical cannabis and 11 states and Washington D.C. have legalized its use for adults.

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Biden Says Cannabis ‘Has to Be Legalized’

2/07/2020

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Former vice president and Democratic presidential candidate Joe Biden expressed support for federal cannabis reforms in a recording obtained by Politico and published on Thursday. Biden’s comments on the campaign trail in New Hampshire were recorded by Don Murphy of the Marijuana Policy Project.

In the recording, Murphy asks Biden about his “hawkish” cannabis policies. In his response, the former vice president expresses support for decriminalization, medical cannabis legalization, and criminal justice reform, ultimately concluding that the U.S. is “at the point where it has to be, basically, legalized” but that he was “not prepared to do it” while “serious medical people” still have concerns over its effects.

“First of all, we should decriminalize marijuana and I’ve been pushing that for a while, period. … Number two, medical marijuana should be approved. … Number three, anyone convicted of a marijuana offense past, present, or in the future have their record wiped clean so they can answer on any sworn affidavit they’ve never been arrested for a crime related to marijuana. … Either, as you know, there are medical people who say we should study it more to make sure that there aren’t other effects – it’s not a gateway drug, it’s not a gateway drug, I think science matters – … And I would have the [National Institutes of Health and Centers for Disease Control] looking at it.” – Biden, in a recorded interview, via Politico

Biden’s campaign told Politico that he was “restating his cannabis policy” on the recording. Last November, Biden said during a Las Vegas, Nevada town hall that he wouldn’t legalize cannabis due to concerns about whether it’s a gateway drug; although he did express support for federal decriminalization and medical cannabis legalization during his remarks at that event and did walk back the gateway drug comments a few weeks later.

Among the frontrunners for the Democratic nomination, Sen. Bernie Sanders (I-VT) has indicated he would legalize cannabis federally on his first day in office, while former South Bend, Indiana Mayor Pete Buttigieg supports the decriminalization of all drugs, and Sen. Elizabeth Warren (D-MA) has sponsored the Marijuana Justice Act which includes cannabis legalization and criminal justice-related reforms.

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Aurora CEO Retires Amid ‘Business Transformation Plan’

2/07/2020

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Aurora Cannabis Inc. co-founder and CEO Terry Booth announced his retirement from the company on Thursday, the latest cannabis company CEO to leave their job amid a volatile time in the industry. According to a Yahoo! Finance report, the company also said it was implementing a “business transformation plan” while BNN Bloomberg reported that Aurora plans to cut its workforce by 10 percent.

Although Aurora didn’t comment on the rumored job cuts, the firm said the recent changes are “consistent with, and evidence of Aurora’s commitment to, achieving positive [Earnings Before Interest, Taxes, Depreciation and Amortization] and cash flow as rapidly as possible, while still maintaining the ability to capitalize on longer-term Canadian and global cannabis market opportunities.”

In a statement, Booth said the timing was right to make the announcement.

“These changes, along with the financial transformation which we are undertaking, should clearly demonstrate to investors that Aurora has the continuity, strategic direction and leadership it needs to transition from its entrepreneurial roots to an established organization well positioned to capitalize on a global growth opportunity.” – Booth, in a statement, via Yahoo! Finance

Executive Chairman Michael Singer will become interim CEO and the company also added two new independent directors – Michael Detlefsen, the current Managing Director of Pomegranate Capital Advisors, and Lance Friedmann, who has worked for Kraft Foods and Mondelēz International, Inc.

Last month Aurora put its Exeter greenhouse facility up for sale amid a stock price plunge.

Booth is at least the third cannabis company CEO to leave their position since January 2018 when Aphria CEO Vic Neufield was removed following a financial scandal. In July, Canopy Growth Corp. co-founder Bruce Linton was ousted from his role as CEO and just last month MedMen Enterprises co-founder Adam Bierman stepped down amid reports that the company was strapped for cash and offering to pay vendors with company stock.

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Embattled Kentucky Hemp Processor Files for Chapter 11

2/07/2020

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GenCanna Global USA Inc., a leading hemp processing company in Kentucky, has filed for Chapter 11 bankruptcy that could lead to a reorganization plan, debt refinancing, or a potential sale, according to a MarketWatch report. The company will be allowed to continue operations during the process.

In a statement, CEO Matty Mangone-Miranda said the company was taking the action “in order to position [the] business for success in a highly dynamic and rapidly evolving industry.” The company indicated it had recently secured about $10 million in “post-petition debtor-in-possession” financing from its senior lender and that the infusion, which is subject to court approval, would give the company liquidity to maintain operations during the bankruptcy process.

“While this is certainly not the outcome we desired, the bankruptcy process gives us the ability to move forward in a way that allows us to best continue operations and serve customers as we work through our reorganization,” GenCann said in a press release.

Kentucky Agriculture Commissioner Ryan Quarles, a strong supporter of agricultural hemp, said it was a sign that the industry as a whole is facing “strong headwinds.” He said it is a priority to ensure farmers and contractors get paid what GenCanna owes them.

“Today’s announcement is a gut punch to Kentucky’s hemp industry and to many Kentucky farmers who dared to hope and risk on this crop.” – Quarles, in a statement, via MarketWatch

Last month, three companies – Pinnacle Inc., Crawford Sales Inc., and Integrity Architecture PLLC –  filed a petition in the federal court last to initiate involuntary bankruptcy proceedings in an effort to receive payments of debts owed by GenCanna, according to a WPSD report.

In Kentucky, the home state of Majority Leader Mitch McConnell (R), who helped guide federal hemp reforms in 2018, there are nearly 1,000 growers and more than 200 processors who received hemp business licenses last year. University of Kentucky agricultural economists estimate the state’s producers could have earned between $55 million and $65 million from last year’s crop.

According to WPSD, GenCanna has an unfinished processing plant in Graves County and an unused manufacturing space in Paducah. In December, the firm laid off about 60 of its employees at its headquarters, while liens have been placed on one of its facilities by contractors who claim they were not paid for their work on the facility; at least one contractor filed a foreclosure complaint against the property. GenCanna is also accused of sending low-quality hemp seeds and violating contracts, which has led to lawsuits.

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Dale Sky Jones & Malcolm Youngren: Evolving Cannabis Education

2/06/2020

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Dale Sky Jones is the president and CEO of Oaksterdam University, a cannabis education institution that has successfully trained thousands of cannabis workers and professionals. Malcolm Youngren is the chief operating officer for the Pacific College of Health & Science, an institution dedicated to the integrative teaching of both Western and Eastern medicinal practices.

Together, the two have partnered for a program that offers Medical Cannabis Certificates for Health Professionals — in the following Q&A, which features both Dale and Malcolm, we dive into this latest partnership and unique offering.

Ganjapreneur: Oaksterdam has been educating cannabis patients and cultivators for a long time. Can you tell us about some of the challenges you’ve faced since the beginning?

Dale Sky Jones: It has been a long time! Almost 24 years ago, Jeff Jones, who is my husband, saw a need to teach patients how to grow cannabis for personal medical use. Then in 2007 Richard Lee officially founded the school and added legal, history, politics, science, and business to the curriculum. The idea was to educate people so they would become advocates to change the laws. Since Oaksterdam began offering classes, we’ve trained over 40,000 students from 40 countries, and now we’re online, so we’re international.

Being the first to do anything as involving as this, and against legal and social norms, has inherent challenges. Launching the school, and then the statewide campaign in 2010 to legalize cannabis in California, now the fifth largest economy in the world, were both extraordinarily difficult and also exhilarating and impactful. But by far, the most traumatic experience was the federal raid in April 2012. It’s an understatement to say that it was devastating for the school. They came after us because we were leading the charge, and they took everything but the office furniture — including all our records and bank accounts. The government took everything our founder had earned and forced him to retire, even though he was never charged with a crime. I took over running the school and museum as my mission to continue the legacy, and to fulfill the need of quality training for the cannabis industry.

How did the collaboration for a Medical Cannabis Certificate for Health Professionals come about?

Malcolm Youngren: About a year and a half ago, after reading the 2018 National Council of State Boards of Nursing guidelines for Medical Marijuana, I reached out to Dale at Oaksterdam. We agreed that those guidelines, which outline the areas of knowledge all 3 million nurses in the United States should know, were a game-changer. We both knew immediately that we needed this certificate. Over 50 million U.S. citizens currently use cannabis, as reported last year, and the market is expected to grow to over $125 billion by 2025. 

Oaksterdam University is a natural partner because, for 22 years, the school has been a leader in cannabis education with a focus on cannabis producers. They have deep expertise in production, seed to sale, legal, and business development, and our knowledge is on the healthcare side. Pacific College is a leader in educating healthcare professions with a focus on nursing, acupuncturists, and massage therapy. Together, we could build a great partnership. We see this as the first of many collaborations between our two schools. For this inaugural certificate, they are providing key lectures, and we hope the partnership grows to encompass a wide variety of educational programs.

Who is the certificate for, and why is it needed?

Malcolm Youngren: Pacific College completed a survey of 107 nurses in the fall of 2018, and 65 percent of those nurses said that their profession needs more education in medical cannabis. That is why the certificate is necessary. There is too little education in the myriad of topics presented by cannabis, such as state laws, medical efficacy, quality control, appropriate prescriptions, contraindications, and many more. With over 50 million users in the United States, the need for this type of education is urgent.

What role did Oaksterdam play in developing the curriculum?

Dale Sky Jones: This certificate program is truly Malcolm’s vision. He and Pacific College developed the curriculum, and then we had a fruitful conversation with them about what role Oaksterdam could play. Two of our best educators are providing several key lectures, which cover cannabis subjects that are relevant to the medical professionals enrolled at Pacific College. There is nothing else like this certificate out there from an accredited college. We are thrilled to be part of the beginning of something that will revolutionize medical education across the country. The next step is bringing Oaksterdam program electives to Pacific College students.

Who will be teaching the courses, and what are their backgrounds?

Malcolm Youngren: Dr. Carey Clark and Dr. Denis Foster are two exceptional faculty members. Not only are they both PhDs and nurses, but Dr. Clark is also the president of the American Cannabis Nurses Association and Dr. Foster is their secretary and a regional director. Dr. Clark is published in over 30 medical journals, the editor of next year’s Wolters-Kuhlwer Cannabis Handbook for Nurses, and an associate professor of nursing at the University of Maine, where she moved to start an integrated holistic nursing program that includes studies on the endocannabinoid system. Also a holistic practitioner, Dr. Foster has been a professional nurse for over 30 years as well as a proponent for the use of cannabis as a therapeutic treatment. I admire her tireless advocacy for medical cannabis research and education. Both are perfect fits for our new certificate program. 

Dale Sky Jones: Natalie Darves is our dean, a certified master gardener, and she teaches cultivation, regulation, and business strategy. Paul Armentano is the deputy director of NORML and our chair of science, and he teaches cannabis policy and law. Both are highly educated academics with decades of experience in their fields. Natalie has managed dozens of outdoor farms and greenhouses, and Paul is an author appearing in thousands of publications. Our students couldn’t have anyone better preparing them for their cannabis-related future. 

How would a hospital board benefit from sending their staff to these courses?

Malcolm Youngren: Cannabis is mainstream, as exemplified by luxury cannabis brands and the high-end retailer Barney’s launching a cannabis lifestyle shop. Cannabis is all around us, but few medical practitioners know about it. Hospital boards need a core of their staff to understand cannabis beyond what they can pull off the internet. This certificate is the first college level certificate in the country, and PhDs who are field leaders are teaching the program. Furthermore, through the capstone course, students can customize their certificate to the specific needs of their hospital.

What are the courses offered, and where are they available?

Malcolm Youngren: The three courses currently being offered are Endocannabinoid System and Pharmacology, Clinical Medical Cannabis Guidelines and Professional Practice, and Cannabis Care Capstone. All classes will be available online, beginning with the next term in January 2020. 

What advice do you have for someone interested in pursuing a career in cannabis education?

Dale Sky Jones: Until we deschedule and legalize cannabis for adult use and for those with medical needs, we are all fighting to end prohibition. We’ve held on long enough to see the world change. To know that our alumni are indeed helping to create that change. Our biggest challenge hasn’t been about ending the prohibition ourselves. It’s been about getting society to finally come around to agreeing that the failed policy of prohibition needs to change, and that we need to legalize research and safe access. I believe otherwise law-abiding citizens can fully participate in the production of a commodity that is safer than many therapeutic substances known to man. 

Healthcare professionals must receive the knowledge needed to fulfill the expectations and needs of patients and the community. This is the moment we can partner with community leaders and higher learning institutions to ensure best practices and corporate responsibility. This new venture between Oaksterdam University and Pacific College of Oriental Medicine is an exciting opportunity and the next step toward achieving homeostasis between academic needs and educational opportunities. 

How will this partnership impact future courses, structure, and offerings from Oaksterdam?

Dale Sky Jones: We are looking at growing our collaboration with Pacific College, offering more courses that will prepare professionals in the cannabis space for business success in this rapidly evolving market. Since we are actively discussing those plans, there’s nothing we can announce just yet. Until then, those interested to know more about Oaksterdam’s curriculum should visit our website to learn more.

What skills will nurses develop after completing the Medical Cannabis Certificate for Health Professionals? How can these skills be used on the job?

Malcolm Youngren: Patients need expert care. In Pacific College’s Medical Cannabis Certificate Program, the students are supported in growing their communication, patient coaching with the use of motivational interviewing, and presentation and research skills. This training is designed to enable them to confidently begin working with patients in a private consulting capacity as related to their current professional status, educate patients and other healthcare providers, and perform outreach with communities. Not only are our certificate holders prepared to work in many diverse settings, but as well an academic certificate carries much more credibility versus completing a series of continuing education units. The completion of the cannabis care certificate demonstrates a commitment to furthering one’s skills as a highly qualified practitioner who is prepared to coach populations with their cannabis care healing journey.

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Space Picks™ First to Launch Cannabis Into Outer Space

2/06/2020

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(Tulsa, OK) February 6, 2020 – Just as Elon Musk announced his plans to launch marijuana into the cosmos, SPACE PICKS™ came out victorious in the cannabis space race, launching 20,000 mgs of dope into outer space four weeks ahead of the tech mogul’s schedule. The company launched a High-Altitude Balloon (HAB) to the edge of space filled with 2,000 of their signature THC-infused toothpicks Wednesday morning from an undisclosed location somewhere in Oklahoma.

SPACE PICKS™ ignited a revolution in the cannabis industry, introducing an inconspicuous product made from ethically sourced, freshly harvested North American white birch wood that’s imbued with natural ingredients and flavors. The toothpicks are handmade, dosage-controlled disposable and biodegradable, boasting fast activation and the utmost level of discretion. With premium THC concentrates infused into each toothpick, quality and delivery remain unmatched at its size and efficiency.

According to SPACE PICKS™ Brainchild-in-Chief and Commander Chris Beauchamp, “A package or two of SPACE PICKS™ requires just about zero space in your suitcase. It’s the most discreet, effective and portable way to experience an amazing high anywhere. Great for long trips to space or short trips to your in-laws!”

Now that the batch of THC-infused toothpicks has made their safe return to Earth, they will be available to purchase along with the company’s other five flavors later this month.

ABOUT SPACE PICKS™  
SPACE PICKS™ was developed by a team of ex-rocket scientists who reminisced about the 70s and their days of relaxing on the launchpad after a long day with a beer and a blunt. The group wanted to develop a low-profile way of getting high while on long trips to and from the launchpad that would also be safe to bring to a highly flammable environment. They settled on toothpicks as a delivery vehicle and spent many years engineering their secret solution for infusing the toothpicks with THC. Launching the toothpicks into space symbolizes the company’s launch into the industry as well as it’s launch into the future.

For media inquiries, contact Chris Beauchamp at chris@spacepicks.com or 407-797-1658.

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90% of Kentucky Supports Medical Cannabis Reforms

2/06/2020

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The Foundation for a Healthy Kentucky’s Health Issues Poll found 90 percent of Kentuckians support medical cannabis legalization in the state, including 95 percent of Democrats, 92 percent of independents, and 90 percent of Republicans. In 2012, the organization found 78 percent supported the reforms.

The poll also found 59 percent support for allowing adults to buy and use cannabis “under any circumstances” – up from 38 percent in 2012; while 49 percent of respondents supported recreational cannabis legalization, up from just 26 percent in 2012. Use “under any circumstances” enjoyed bi-partisan support – 68 percent of Democrats, 59 percent of independents, and 51 percent of Republicans. Just 38 percent of Republicans supported legalization for recreational purposes, along with 54 percent of independents and 60 percent of Democrats.

The pollster also found that four in 10 Kentuckians know someone who “regularly uses” cannabis.

In 2018, a medical cannabis bill stalled in the House Judiciary Committee and while another medical cannabis bill was prefiled in the state at the beginning of the legislative session, no further action has been taken on it, according to a WLKY report. That bill received a 16-1 vote in the Judiciary Committee last year and more than 60 representatives committed to vote for it if it came to the House floor during this year’s session, according to the report.

Another bill to legalize recreational cannabis was prefiled in Kentucky for this session last December, according to WLKY.

Democratic Gov. Andy Beshear, who served as Attorney General prior to his election, said on the campaign trail that he would vote for a constitutional amendment to legalize medical cannabis in the state.

The Foundation for a Healthy Kentucky poll was conducted from October 16, 2019 to December 6, 2019 by the Institute for Policy Research at the University of Cincinnati. The poll included a random sample of 1,559 adults from throughout Kentucky interviewed by telephone, including 468 landline interviews and 1,091 interviews with cell phone users.

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Competing Legalization Campaigns Active in Arkansas

2/06/2020

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Arkansas canna-activists are circulating petitions for competing adult-use cannabis legalization proposals for the 2020 General Election ballot, 5 News reports. Both groups need to collect 89,151 valid signatures by July 3 to put the issue to voters and both claim to have already surpassed 10,000 signatures.

The measure backed by Arkansas for Cannabis Reform – the organization behind the state’s successful medical cannabis legalization bid in 2016 – would allow adults 21-and older to possess up to 4 ounces of flower, 2 ounces of concentrates or edibles (capped at 200 milligrams) and would allow individuals to cultivate six mature and six immature plants on their property. The proposal would require one retail dispensary per county – that doesn’t opt out – 30 per Congressional district, and one cultivation company per 250,000 residents. The proposal, a constitutional amendment, leaves rule and licensing promulgation to the Alcohol Beverage Control Division of the Arkansas Department of Finance and Administration.

Although the amendment does not include a tax rate, it does direct 60 percent of the cannabis-derived revenues to pre-k and afterschool programs, and whatever remains, after funding the program, to the University of Arkansas for Medical Sciences.

The amendment by Arkansas True Grass does not include any of the cultivator or retailer restrictions included in the competing proposal, sets fees for those licenses at $500, and allows individuals to grow 12 plants and an unlimited number of seedlings. Their measure caps daily flower purchases at 4 ounces for Arkansans and 1 ounce of flower and 72 ounces of edibles for non-residents.

The True Grass proposal would automatically expunge low-level cannabis crimes, while the Arkansas for Cannabis Reform plan would support other, third-party expungement campaigns.

Laree Treece, a volunteer with Arkansas for Cannabis Reform said the recreational legalization campaign would be “an uphill battle” and that having a competing petition circulating in the state is “confusing people.”

In 2016, Arkansas voters approved the medical cannabis amendment 53 percent to 47 percent. Last year the state’s 14 medical dispensaries sold 4,200 pounds of cannabis worth $28.13 million.

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Missouri Group Launches Cannabis Legalization Bid

2/06/2020

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Missouri activists are circulating petitions to put adult-use cannabis legalization on November ballots, the St. Joseph News-Press reports. Missourians for a New Approach, the organization behind the legalization campaign, also headed the successful 2018 bid to legalize medical cannabis in the state. Activists need to gather 17,000 valid signatures from registered voters distributed across six of the eight Congressional districts by May 3.

The measure would legalize cannabis for adults 21-and-older and impose a 15 percent sales tax, which would be used for infrastructure, veterans, and combating drug use. The proposal includes expungement and local opt-out provisions. Potential taxes derived from cannabis sales in Missouri are estimated at between $93 million and $155 million annually, while the program would cost the state about $21 million initially and $6 million per year after that.

John Payne, the campaign manager for Missourians for a New Approach, told the News-Press that the organization is “basically getting petitions in people’s hands right now,” using both paid and volunteer signature gatherers. According to a St. Louis Post-Dispatch report, New Approval PAC, based in Washington state, has donated $150,000 toward the signature-gathering effort.

According to the January 31 Post-Dispatch report, the campaign had raised $80,000 in contributions, including $25,000 from BeLeaf Medical, which holds three medical cannabis cultivation licenses and five dispensary licenses in the state.

Missouri’s medical cannabis industry is still not yet online and regulators only awarded some operator licenses last month. Voters approved the medical cannabis amendment 66 percent to 34 percent during the midterm elections.

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Cannabis Firm Accused of $4.85M Ponzi Scheme

2/05/2020

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The Securities and Exchange Commission (SEC) filed a complaint against Robert Russell on January 21 in a federal court in Santa Anna, California. The complaint accuses Russell and his partner, Guy Scott Griffithe, of defrauding investors of $4.85 million dollars, the Seattle Times reports.

No charges have been filed in the case, but the SEC has charged Russell and Griffithe with a host of civil violations and seeks the return of their fraudulent gains. Robert’s wife Sonya was also listed in the complaint as a “relief defendant.”

The complaint alleges that the men promised investors large profits from their now-defunct Green Acre Farms in Anacortes, Washington. The SEC says many investors cashed in their retirements or took loans from family members to invest, while the Russells and Griffithe allegedly took $3.5 million of the money and spent it on luxury cars, a 65-foot yacht, and other luxury goods.

Using shell companies in California, Griffithe is alleged to have enticed “at least” 25 investors to invest in SMRB, Green Acre Farms’ parent company. 

“Griffithe and Russell exploited popular interest in the cannabis industry to obtain millions of dollars from investors who thought they were buying into a profitable business.” — Melissa R. Hodgman, the associate director of the SEC’s Enforcement Division, via the Seattle Times

Green Acre Farms has sold a total of $6,495,454 of cannabis products since they were granted a producer/processor license in February 2016, according to 502data.com, a website dedicated to tracking Washington State cannabis revenue. During the last month of sales before the farm closed in December, the company sold $96,010 in cannabis; throughout the life of the business, sales were frequently above $150,000 a month. Despite these seemingly large receipts, according to the SEC complaint, Green Acre Farms was never profitable. 

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California Will Require Cannabis QR Codes

2/05/2020

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California’s Bureau of Cannabis Control has announced emergency regulations that would require cannabis retailers and delivery services to post QR codes in their storefront windows and carry it with them while transporting or delivering cannabis products.

“The emergency regulations are designed to help consumers identify licensed cannabis retail stores, assist law enforcement and support the legal cannabis market, where products such as vape cartridges are routinely tested to protect public health and safety.” – Bureau of Cannabis Control, February 3, in a press release

The changes would allow consumers to check whether a dispensary is licensed by the state and allow law enforcement to scan the codes to determine whether they are transporting products that originated in the regulated market.

Terra Carver, of Humboldt County Growers Alliance, told the Times-Standard the organization appreciates the “proactive approach” by the agency to help consumers identify legal retailers. She said it’s “literally” a matter of “life or death” for consumers who are “trying to figure out if the dispensary they are shopping at is selling poisoned products or not.”

The rules are subject to five days of public comments. If approved, California would be the first state to require QR codes as part of its cannabis enforcement mechanisms.

According to an Arcview and BDS Analytics report outlined by CNN, illicit cannabis sales in California in 2019 were estimated at $8.3 billion, while legalized sales were expected to reach $3 billion.

The agency first announced the QR codes plan in January.

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NCIA Announces New Members of Board of Directors

2/05/2020

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Newly-appointed members and several incumbents will replace long-serving members for 2020-2022 term

WASHINGTON, D.C. – The National Cannabis Industry Association (NCIA), the country’s largest cannabis trade association and industry advocacy organization, will be seating its newly-appointed board of directors this month at the Northeast Cannabis Business Conference in Boston.

The organization’s Nominating Committee brought on five new board members. Narbe Alexandrian is the president and CEO of Canopy Rivers, a major investment and operating platform structured to pursue opportunities in the cannabis sector. Omar Figueroa, principal of Law Offices of Omar Figueroa, Inc., is a long-time cannabis activist and attorney representing cannabis-related businesses throughout California. Liz Geisleman is the vice president of Rocky Mountain Reagents, Inc., which has provided biological and chemical product solutions to a wide variety of industries for over 50 years. Ryan Hurley is general counsel for Copperstate Farms, one of the largest licensed medical cannabis cultivators in the country. Chris Jackson is the co-founder of Indica LLC and Sticky Ypsi, a cannabis provider based in Michigan.

Three incumbent board members were also re-elected for another term: Cody Bass, founder and executive director of Tahoe Wellness Center; Khurshid Khoja, current board vice-chair and principal of Greenbridge Corporate Counsel; and Manndie Tingler, co-founder and CRO of Khemia Manufacturing and business development officer for Natura.

The full list of board members and their bios is available here.

Outgoing board members include current Board Chair A.C. Braddock, Jessica Billingsley, Alex Cooley, Steve DeAngelo, Sean McAllister, and Erich Pearson.

“It has been a pleasure to lead NCIA’s board at such a revolutionary time in the emerging cannabis industry,” said A.C. Braddock, CEO of Eden Labs. “We have taken great strides in terms of acceptance and legitimacy in the last few years, and this momentum will only continue as we get closer to ending prohibition through education and political unity. I look forward to continuing my involvement with NCIA in other capacities to build an industry based on the science of this plant to promote health and wellness and to support mission driven business.”

“I’m deeply grateful to the NCIA for electing me to the board since the founding of our organization almost ten years ago, and am proud to have been a part of growing NCIA into the powerhouse it has become,” said Steve DeAngelo, founder of Harborside, Inc. “Together we have alleviated untold suffering, saved countless lives, and changed the world. I can’t wait to see what the next decade will bring!”

“Being an NCIA board member has been one of the most enjoyable parts of my life and career,” said Alex Cooley, co-founder of Solstice. “I have deeply enjoyed working with the board and staff over the past several years to change the face of cannabis in the U.S. and ultimately the world. This is by no means goodbye, as I look forward to continuing my participation with NCIA in the coming years and especially look forward to attending our 10th Annual Lobby Days in Washington, D.C. this May.”

“Having a trade association with the knowledge, experience, and ability to represent cannabis businesses on the national stage is absolutely vital to the long-term success of this industry, and we are in good hands with NCIA,” said Sean McAllister, co-founder of McAllister Garfield, P.C. “I’m happy to have been a part of this important work, and excited to see the progress we have made in recent years – and will make in the future – with this organization looking out for the interests of its members and the cannabis industry as a whole.”

“It’s been a pleasure to serve on NCIA’s board for the past several years. I am proud of the work we’ve done to move cannabis policy forward around the country,” said Jessica Billingsley, CEO of Akerna.  “I’m confident the organization will continue to lead the cannabis industry in the right direction and help businesses of all kinds and sizes flourish as we enter a new era of growth and legitimacy.”

“NCIA is leading the way in providing advocacy and resources for the cannabis industry and protecting the interests of the businesses that are involved in it,” said Erich Pearson, CEO of SPARC. “I am glad to have been able to contribute to its efforts as a member of the board and will continue to support its work as we fight to end prohibition and make the cannabis industry an example for others to follow.”

The first board meeting with new and incumbent members is slated to take place later this month.

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The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the U.S. and the only organization broadly representing cannabis-related businesses at the national level. NCIA promotes the growth of a responsible and legitimate cannabis industry and works toward a favorable social, economic, and legal environment for that industry in the United States.

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Whoopi Goldberg’s Cannabis Brand Shuts Down

2/05/2020

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Whoopi Goldberg’s women-focused cannabis company, Whoopi & Maya, has shut down, according to a statement posted on the company’s website. Goldberg started the company with Om Edibles founder Maya Elisabeth.

“In 2016, we launched with an urgent mission: to offer safe, natural relief for period pain through the miracle of medical cannabis. We proved there’s a market for this medicine and it’s been our joy to offer this miraculous relief to our treasured customers. It has been our privilege to serve the community. Though we’ve all come a long way, there’s far more to be achieved. This is simply the end of a single chapter in a larger story, one that we invite you to continue.” – February 4, 2020 announcement, WhoopiandMaya.com

Rick Cusick, a Whoopi & Maya board member who helped found the company, told CNN that the decision to shutter the business was due to personal issues between the founders and being forced to “jump through hoops” by California regulators.

“We were well on the way to [being cash-flow positive] but then we had to jump through hoops to change our packaging … and then change our packaging again,” he said, adding that “it became clear … that Whoopi and Maya wanted a divorce” but it was unclear how they could move forward with the company without either of the founders because both of them “were very integral” to its operations.

According to CNN, the company’s board and its investors will meet separately this week to discuss a possible future for the company’s products. Neither Goldberg nor Elisabeth have made any public statements about the closure.

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Minnesota House Majority Leader to Introduce Legalization Bill

2/05/2020

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Minnesota House Majority Leader Ryan Winkler (D) plans to introduce recreational cannabis legalization legislation early in this year’s session. The announcement follows a 15-city Be Heard Cannabis Tour in the state, during which Winkler said residents were “united” in their beliefs that the state’s current cannabis laws “don’t work.”

“The cannabis legal system we have today is a failure and the message is we need to figure out how to move on from that.” – Winkler, during a February 4 press conference

During his remarks, Winkler outlined the “principles” of the legalization proposal, including taxation and regulations, criminal justice, public health, and economic development. Winkler added that the bill, which has yet to be drafted, would include social equity provisions.

According to a Bring Me the News report, Gov. Tim Walz (D) has previously expressed support for the reforms and indicated he would sign a broad legalization bill; however, the state Senate is controlled by Republicans and Senate Majority Leader Paul Gazelka told Minnesota Public Radio last year that lawmakers should “be slow” on the issue and that cannabis use leads to “mental health problems, driving accidents, and impaired teen brain development.”

Last session, a Senate panel rejected a legalization measure and Gazelka told MPR that he didn’t expect the chamber to take up a legalization bill during this year’s session.

Winkler told reporters on Tuesday that Galzeka has been “unequivocal” in his opposition and admitted that it was “highly likely” that reforms could take “more than one year to get it done.”

The Marijuana Policy Group last year estimated legal cannabis sales in Minnesota could bring in $300 million over five years on sales of $1.2 billion.

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Lifted Announces Custom Website & App Services for Cannabis Marketing

2/04/2020

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Lifted, a cannabis technology platform, announced a new platform to help shops and brands launch custom apps and websites. Their goal is to help businesses sell directly to customers and reduce dependence on marketplaces like Weedmaps.

Lifted can be found at https://lifted.app

“Monopoly marketplaces create unhealthy competition and make it difficult to retain customers. It’s more important than ever for shops, delivery services, and brands to connect with customers directly through their own independent online presence. Lifted makes it fast, easy, and affordable for businesses to launch custom mobile apps and websites,” said Michael Boyle, CEO of Lifted. “Custom apps and websites help people build direct relationships with businesses, stay informed, and get rewarded for their loyalty.”

Based in Southern California, Lifted was founded in 2016 and serves hundreds of dispensaries and delivery services in the United States and Canada.

Independent apps and websites

Using Lifted, shops, brands, and creators can easily launch their own custom websites and apps. Members can download apps from Apple’s App Store for iPhone and iPad and from Google Play for Android devices. Websites use their own domain name and are SEO-optimized to be among the top results in search engines like Google.

Push Notifications and SMS

Using Lifted’s Broadcasts system, businesses can easily send announcements, deals, and offers to all of their members via SMS or app-based push notifications. Analytics tell businesses how many members engage with a broadcast including how many go on to make a purchase.

Loyalty, Points, and Rewards

Shops are able to offer their members points and rewards for purchases. This gives customers a reason to come back in the future to shop instead of looking for deals from competitors.

Additional features in Lifted include:
  • Online menus and ordering make it easy for customers to browse products and place orders for pickup or delivery. Menus can sync with existing online menus or POS systems so inventory is always accurate.
  • Store locator helps brands direct members to nearby retail and delivery services that carry their products.
  • Private chat allows members to message businesses and cut down on phone calls and in-shop consultations.
  • Community feeds enable businesses to post cannabis content to their own app which won’t get shutdown unlike on Instagram.
  • Events keep members informed of patient appreciation days, product demos, and special opportunities.
  • Contests make it fun for members to create and submit their own content. Winners can be selected, notified, and awarded points.

For more information, please visit https://lifted.app.

To schedule a free consultation, please contact Lifted at info@lifted.app.

 

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Activists Block Concentrates Ban in Washington

2/04/2020

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Washington’s well-publicized “10 percent concentrates bill” has been stopped in committee for the 2020 session. HB 2546, “Concerning the Potency of Marijuana Products, would have limited cannabis concentrates in the state at just 10 percent potency for THC. The bill had its first and only hearing last week on January 30.

During the hearing, proponents of the bill expressed concerns about teen psychosis and fetal THC exposure. The bill’s primary sponsor, Rep. Lauren Davis (D), cited stories of teens discovered at school in the “throes of psychosis” after doing dabs and, as Executive Director of the Washington Recovery Alliance, reports from inpatient psychiatric hospital directors that they were seeing teens and young adults with “cannabis psychosis” on a regular basis. Davis referred to various other studies related to cannabis psychosis, concluding with a 2017 National Academy of Medicine meta-analysis on three decades of cannabis data that pointed to a “strong to moderate” connection between cannabis and psychosis.

Henry Levine, a representative of the Washington State Psychiatric Association and someone who teaches other doctors around the country about “marijuana,” testified in favor of the bill.

“But most importantly are its multi-generational effects on youth particularly. High THC marijuana impairs judgment, impairs impulse control and increases sex drive. That is a bad combination in youth. When youthful users get pregnant, THC crosses into the circulation of the fetus where it impairs the baby’s brain development.” — Henry Levine, during testimony sampled by the Cannabis Observer

In the end, opponents of the bill — primarily adult-use cannabis business owners, medical cannabis advocates, and their allies — triumphed. They argued the bill would hurt businesses and affect medical cannabis patient’s access to the stronger forms of medicine that concentrates provide. Others pointed out that these concentrates have been around for many years and putting them back on the unregulated market would be a “step backward.”

After a short break, Representatives returned and House Commerce and Gaming Committee Chair Strom Peterson (D) said the bill would not be moving out of the committee, but acknowledged the importance of the conversation. Over the weekend, sources say SB 6332, the Senate companion bill, was pulled due to overwhelming opposition.

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Court Approves Prescription Tax Cuts for Cannabis Businesses

2/04/2020

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A New Mexico appellate court has ruled that state-licensed medical cannabis producers can claim a tax deduction for prescription medication, the Albuquerque Journal reports. New Mexico has never allowed the industry to take the deduction and medical cannabis companies paid about $24 million in gross receipts taxes over the last three years, the report says.

Sen. Jacob Candelaria (D) told the Journal that the ruling has “a direct potential fiscal implication to the state” and that lawmakers will need to set aside funding for the tax claims if the ruling survives appeal.

The Court of Appeals verdict overturns a hearing officer’s decision and says medical cannabis meets the definition of a prescription drug under New Mexico tax code because physicians are required to certify patients for the program and that both medical cannabis and the allowable tax deduction for prescription drugs both intend to make medicine more accessible to patients, according to the report. The state’s cannabis laws don’t define cannabis as a prescription drug.

Candelaria suggested to the Journal that the ruling could have implications beyond the tax code, including on workplace medical cannabis policies, and the rights of inmates and others under state supervision to use medical cannabis.

Last year, the New Mexico Corrections Department updated its guidelines allowing registered patients on parole or probation to use their physician-recommended medical cannabis products. If the ruling in upheld and serves to define cannabis as a prescription drug, it could allow inmates and those awaiting trial – who are not covered by the Department of Corrections guidance – access to their medicine.

The ruling could ultimately lower cannabis prices for patients in the state if companies no longer have to pay the state taxes. The Taxation and Revenue Department has until Feb. 27 to appeal the ruling.

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Cannabis Driving Arrests Up Slightly in Edmonton, Alberta

2/04/2020

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Edmonton, Alberta, Canada law enforcement report a slight uptick in post-legalization cannabis-impaired driving arrests, from 33 in the first 10 months of  2018 to 39 over the same period in 2019, the CBC reports. Overall, the Edmonton Police Service said they arrested 134 drug-impaired drivers last year, up from 115 the year prior – a 17 percent increase.

Over the past two years, cannabis impairment has comprised about 29 percent of drug-impaired driving arrests in Edmonton, according to police.

The agency said the drug-impaired driving process takes six times longer and costs six times more than the process for alcohol; $537 on average. The department also conducted around 30 roadside checkpoints last year, the report says. The Edmonton City Council approved $1.4 million to police following legalization but denied a subsequent $3 million request to hire 24 more officers, instead asking police for quarterly updates on the financial and social costs of legalization.

At least 759 Edmonton Police officers were also trained on the new cannabis laws last year and, since 2015, there has been a 10-fold increase in the number of its officers who can administer the roadside sobriety tests.

In December, Saskatoon, Saskatchewan police indicated they “experienced fewer issues than were expected” after legalization. In their report, the agency said that from October 17, 2018, to October 17, 2019, only eight of the city’s 292 driving-while-impaired violations were directly related to cannabis intoxication.

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Curaleaf Completes Acquisition of Cura Partners

2/04/2020

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Massachusetts-based Curaleaf Holdings Inc., has completed its acquisition of Oregon’s Cura Partners including 53 dispensaries, wholesale business, and Select brand. The deal, initially announced worth $950 million, closed at less than $400 million, according to Oregon Live.

The deal comes on the heels of a $110,000 Oregon Liquor Control Commission fine against Cura for incorrectly labeling more than 180,000 Select vape products as “100 percent cannabis” despite containing “botanically derived terpenes and/or medium-chain triglyceride (MCT) oil as an ingredient.” A lawsuit has also been filed against the company for the claims and mislabeling, which regulators called an internal communication problem rather than an attempt to deceive.

Joseph Lusardi, CEO of Curaleaf, called the deal “a major milestone” in the company’s history, marking “an unprecedented phase of growth” for the firm.

“As we’ve scaled, Curaleaf has pioneered the U.S. cannabis industry, and we’re incredibly excited about the future and our leadership role in it. Our entire organization is focused on accelerating our growth as a combined company with two of the fastest growing cannabis brands in the country.” – Lusardi, in a press release

Cameron Forni, the founder of Select and one of the company’s largest shareholders, will serve as president of the brand.

In 2018, Cura’s sales reached $118 million and was the state’s largest cannabusiness, according to Oregon Live, who note that Cura had conducted a round of layoffs during the holiday season, but the details of those layoffs remain unknown.

The precipitously lower-than-expected closing price comes amid sharp declines in cannabis stocks and lower overall company valuations in the space.

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Sanders Pledges to Legalize Cannabis on First Day as President

2/03/2020

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Vermont Senator and presidential candidate Bernie Sanders (I) pledged over the weekend that, if he is elected, he would legalize cannabis nationwide on his first day as president, Forbes reports.

“We will end the destructive war on drugs. On my first day in office through executive order we will legalize marijuana in every state in this country.” — Vermont Sen. Bernie Sanders, at a campaign rally in Cedar Rapids

Sanders also pledged to expunge cannabis possession arrest records and that the reforms would include social equity elements.

“We will make certain that the legalized marijuana industry is not controlled by a handful of corporations but that those people — the African-American community, the Latino community, the Native American community — those people who have suffered the most will get help in order to make money through a legalized marijuana industry,” he said.

It is not the first time that Sanders has promised to legalize cannabis via executive order — the candidate told podcaster Joe Rogan last August that he planned to end federal cannabis prohibition if elected. In October, the candidate outlined a more specific legalization plan.

Cannabis has emerged as an important issue in the 2020 Democratic Primaries, with most of the race’s progressive candidates having adopted some form of cannabis and/or drug policy reforms as a part of their platform.

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Oregon Company Fined for Mislabeled Cannabis Vapes

2/03/2020

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The Oregon Liquor Control Commission has levied a $110,000 fine on Cura Cannabis – the state’s largest cannabis company – over allegations that the firm incorrectly labeled its Select vape products as 100 percent cannabis but contained “botanically derived terpenes and/or medium-chain triglyceride (MCT) oil as an ingredient,” according to an Oregon Live report.

The settlement between the state and the company includes a $10,000 “dishonest conduct” sanction, which is lieu of a 34-day license suspension. Those botanically derived terpenes were briefly banned by Gov. Kate Brown last fall during the early vaping-related respiratory illness episodes.

Two days after the announcement of the settlement, a Portland couple filed a lawsuit against Cura demanding that the company give up any profits it made from the mislabeled products, according to Willamette Week. State regulators claim that Cura mislabeled more than 180,000 Select vape products. Emails obtained by the Portland Business Journal show the company told the OLCC the mislabeling was an internal communication problem rather than an attempt to deceive.

Michael Fuller, the attorney who filed the suit on behalf of the couple in Multnomah County, said the final judgment against the company could “exceed $37 million including statutory damages.”

The OLCC action and lawsuit come as Massachusetts firm Curaleaf Holdings Inc. is trying to close its all-stock deal to buy Cura. The deal, announced last year, was initially worth nearly $1 billion but, according to Oregon Live, the transaction is now worth about $400 million following sharp declines in cannabis stocks and lower overall company valuations.

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New York State Bar Backs Cannabis Legalization

2/03/2020

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The New York State Bar House of Delegates has approved a resolution in support of adult-use cannabis legalization in the state. The association’s Committee on Cannabis law recommends that the reforms include state taxes, social equity, environmental protections, advertising and marketing regulations, municipal opt-out options, U.S. Department of Agriculture-mandated testing, and the creation of an Office of Cannabis Management.

The report also suggests that state officials would benefit from recruiting the RAND Corporation, a nonprofit global policy think tank, or similar organization to analyze a legalization policy. The association notes that the RAND Corporation has been used by other states looking to legalize adult-use cannabis.

The organization’s opt-out policies suggest that counties or cities that opt-out of cannabis sales would not get a cut of the tax revenues derived from the industry – which is the case in other states that have legalized cannabis. The report points out that the town of North Hempstead in Nassau County has already passed local legislation to prohibit adult-use cannabis sales. The town of Islandia in Suffolk County has promised to sue the state if it legalizes cannabis statewide.

The association recommends that the state look to the six most recent states to legalize cannabis when drafting its social equity provisions and suggests commissioning “an outside research entity like RAND” to help guide those rules.

“We recommend that New York not adopt any specific social equity provisions until this analysis is complete, but that such efforts should not prevent comprehensive regulation of legalized adult-use cannabis.” – New York State Bar Association, in the resolution

The Bar Association suggests that the social equity provisions include business incubator programs, hiring requirements, earmarking of tax revenues for communities most impacted by the War on Drugs, and prohibiting “local or state government from discriminating against licensing applicants on the basis of their substance-use treatment history, or convictions unrelated to honesty.”

The report also backed the American Bar Association’s 2019 resolution calling for cannabis’ removal from the federal Controlled Substances Act.

Gov. Andrew Cuomo (D) has included cannabis legalization as part of his 2021 Executive Budget.

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