South Dakota to Vote on Legalization in November

The South Dakota Secretary of State’s Office has validated the ballot initiative to legalize cannabis in the state, ensuring that citizens will vote on the reforms during November’s Presidential Election, the Argus Leader reports. The approval comes less than a month after officials approved a separate petition to legalize medical cannabis in the state.

If approved, the constitutional amendment would require the Legislature to pass laws legalizing and regulating hemp, and both recreational and medical cannabis.

South Dakota will be the first state to vote on both medical and adult-use measures during a single election. According to the report, lawmakers are already working on a bill to legalize and regulate hemp along with another bill that would put hemp legalization to voters during the election if the bill failed to pass.

Republican Gov. Kristi Noem opposes all forms of cannabis legalization – including hemp – and wrote in an Argus Leader op-ed last year that legalizing hemp legalizes cannabis “by default.” In the op-ed, Noem said that legalizing hemp “weakens drug laws” and “hurts law enforcement.”

In 2018, a ballot initiative to legalize cannabis in South Dakota failed to submit enough valid signatures to appear on ballots that year; in 2016, a notary error forced an adult-use question off of the ballot.

It’s unclear what ramifications would be if both the medical and recreational initiatives pass in November; however, it’s likely that the constitutional amendment – the recreational measure – would supersede the non-amendment medical cannabis initiative.

Citizens have until January 20 to challenge the medical cannabis measure and until February 5 to challenge the ballot measure.

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NCIA to Host Reddit AMA on Federal Cannabis Policy Reform

NCIA’s Government Relations team to discuss legislative progress in the past year and next steps for reform in 2020 and beyond in r/politics

WASHINGTON, D.C. – This afternoon, the National Cannabis Industry Association (NCIA) will host a Reddit “Ask Me Anything” (AMA) session to discuss the current state of cannabis policy reform in Congress and the path forward for sensible regulations at the federal level. The session will begin at 2 p.m. ET and will feature NCIA’s Government Relations team, consisting of Michael Correia, Michelle Rutter, and Madeline Grant.

The session can be found here and questions can be asked in advance or during the discussion.

Michael Correia is NCIA’s director of government relations, leading its lobbying efforts in Congress for more than five years. Prior to joining NCIA, Michael spent years working on Capitol Hill, including working for Rep. George Radanovich (R-CA), who retired in 2010, and the House Committee on Resources, serving three different chairpersons. Prior to that, he was director of federal affairs for the American Legislative Exchange Council (ALEC) and senior project manager for the Committee for Responsible Federal Budget.

Michelle Rutter is NCIA’s government relations manager. Prior to working for NCIA, Michelle was a research analyst at a government affairs firm in Washington, D.C., where she analyzed and tracked legislation on numerous issues. During her studies, she held a year-long internship with Virginia House of Delegates member Tony Wilt (R) where she communicated with constituents, businesses, and government officials, facilitating meaningful conversations.

Madeline Grant is also a government relations manager for NCIA. Previously, Madeline worked for two members of Congress on Capitol Hill, Rep. Scott Perry (R-PA) and Rep. Scott Tipton (R-CO). During her first year on the Hill, she gathered cosponsors and support for the Charlotte’s Web Medical Access Act of 2015. She currently manages NCIA’s federal PAC.

WHAT: Reddit “Ask Me Anything” on r/politics with National Cannabis Industry Association discussing current state of cannabis policy reform in Congress

WHEN: Wednesday, January 8 at 2 p.m. ET

WHERE: https://www.reddit.com/r/politics

WHO: Michael Correia, NCIA Government Relations Director

Michelle Rutter, NCIA Government Relations Manager

Madeline Grant, NCIA Government Relations Manager

###

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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Hemp Driver Freed After a Month in Texas Jail

A hemp delivery driver jailed on federal drug charges in Texas has been freed and his charges dismissed after laboratory testing on his 3,350-pound cargo confirmed it was hemp, the Texas Tribune reports. Aneudy Gonzalez had been jailed for nearly a month after being pulled over for driving on the shoulder by a Texas Department of Public Safety trooper; Gonzalez was arrested despite showing the officer the lab tests for his cargo.

Under Texas hemp laws, police are not allowed to interfere with interstate transport – the shipment originated in California and was headed to New York – and are not permitted to seize any product or make any arrests unless they have probable cause the substance is psychoactive cannabis. Gonzalez’s attorney, Adam Tisdell, said the lab results took away the officer’s probable cause, but the trooper arrested his client and seized his cargo.

“They legalized a plant that has a distinction that’s invisible to everyone except a machine. Aneudy got searched because they smelled marijuana. Well, they can’t smell marijuana anymore. They can smell cannabis.” — Tisdell, to the Tribune

In a statement to the Tribune, DPS said the trooper believed the substance was illegal based on his training and experience. Gonzalez had also been arrested in Arizona during the same trip; there he spent one night in jail until officials determined he was hauling hemp.

Hemp legalization has brought confusion to law enforcement agencies throughout the U.S. where THC-rich cannabis remains mostly illegal. In Texas, several counties have indicated they would stop prosecuting low-level cannabis crimes due to officers not being able to tell the difference between hemp and psychoactive cannabis and it not being worth the cost of testing to prosecute low-level possession offenses. Since hemp legalization took effect in Texas on June 10, the number of possession cases filed in the state has fallen nearly 66 percent.

Gonzalez’s lawyers said they would pursue a civil lawsuit for their client’s arrest and detention.

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Illinois Dispensaries Brace for Product Shortages

One week after legalized cannabis sales in Illinois, dispensaries are running low on products, forcing some of them to temporarily close, NBC 5 reports. The launch of the legal cannabis market in Nevada, Massachusetts, Alaska, and Washington state also had near-immediate post-legalization shortages, so the shortage in Illinois was no surprise to operators.

Jason Erkes, spokesman for Cresco Labs, indicated the company has “limited supplies left” but the company “put rations in place … when things launched” in an effort to stretch their supplies and serve as many adult-use customers as possible. He added that the state’s growers are “ramping up their production and expanding their facilities.” He expects the supply chain to stabilize by spring.

Under the state’s recreational cannabis law, medical cannabis patients get first priority at the state’s dispensaries. Herbal Center Spokesperson Courtney Greve-Hack, told NBC 5 that the dispensary stopped selling to recreational consumers over the weekend but plan to resume selling some products – such as edibles and topicals – on Friday, but the company won’t sell flower to recreational users “until they can feel confident they have enough for medical patients.”

Pharmacann’s Jeremy Unruh said that while his firm grows and sells cannabis, state law doesn’t allow companies to favor their own dispensaries.

“Over the last five years we have developed very strong wholesale relationships with the other cultivators in Illinois, and we’ve spent the last several months leveraging and working those wholesale relationships to make sure that we’re prepared for day one, week one, month one.” – Unruh, to NBC 5

In the first five days, Illinois dispensaries sold more than $10.8 million worth of cannabis products over 271,000 sales, the Chicago Tribune reports. In all, 37 dispensaries throughout the state are online and the state is currently considering more than 700 applications for 75 new dispensary licenses.

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Ohio Petition Seeks to Add ‘Browns/Bengals Fan’ As Cannabis Qualifying Condition

At least one football fan in Ohio has embraced their Democratic right to petition and is asking regulators to grant them medical cannabis access to treat their post-match misery, The Cincinnati Enquirer reports.

The Ohio State Medical Board confirmed this week it has received a petition to make being either a Cleveland Browns or Cincinnati Bengals fan into a qualifying condition for the state’s medical cannabis program.

The board is meeting on February 12 to consider 28 different petitions, others of which included requests for access to treat conditions such as anxiety, depression, and autism. The sports fan petition is quite unlikely to advance further, however, as the board requires input from medical specialists about why each proposed condition should be accepted.

Last year, Ohio regulators received 110 petitions for new cannabis qualifying conditions. Many petitions were either incomplete or made for conditions that were already allowed, however, and the board eventually narrowed down that number to just six conditions: opioid addiction, autism, general anxiety, chronic anxiety, depression, and insomnia. Then, the board consulted medical professionals about the remaining petitions’ validity before rejecting all of the conditions — this year, any petitions that mirror those conditions must be presented with “new scientific information” to be considered again by the board.

Ohio’s medical cannabis industry officially launched in January 2019; in September, the only patient advocate serving on Ohio’s Medical Marijuana Advisory Committee was forcibly removed.

The Cincinnati City Council, meanwhile, voted to decriminalize cannabis possession throughout the city last June.

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New Mexico Water Districts Strained by Cannabis Production

Two rural New Mexico water districts say medical cannabis farms in the area have put a strain on local water supplies. According to the Albuquerque Journal, the Peña Blanca Water and Sanitation District and Sile Mutual Domestic Water and Sewer Association penned a letter to state regulators and legislators expressing their concerns. The letter complains that an average home in the area uses three thousand gallons of water each month, while a medical cannabis producer can use up to twenty thousand gallons in the same period of time.

The problems are being compounded by a patchwork of local, state and federal regulations, combined with already strained water systems due to poor infrastructure and overuse. In New Mexico, domestic water cannot be used for agriculture. Farmers must find other water sources than those allocated for home use, then purchase water rights from the State Engineer. Additionally, mutual domestic well systems cannot be slated for growing cannabis because they would lose Federal improvement dollars, the Journal reports.

“The (cannabis) companies may think that the water rights were already taken care of when they purchased the property. We see the potential for these farms to bring economic growth to a rural community, so how do we support that growth while bringing water to our residents? We come from resource-poor communities, and many people have private domestic wells. We don’t have the infrastructure to move the quantity of water that (the farms) need.” — John Gurule, Peña Blanca system President, via the Journal

The affected groups suggest requiring medical cannabis producers to present “water rights” when submitting an application. Others suggest a “robust framework” passed by the legislature to regulate cannabis and water use, especially with adult-use cannabis potentially on the horizon for New Mexico

 

 

 

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High Times Names Former Overstock.com President as CEO

High Times Holdings CEO and President Kraig Fox is out less than a year after being hired and he’s been replaced by Stormy Simon, the former president of Overstock.com and one of the company’s independent directors.

Fox, who had previously served as a senior managing director of Guggenheim Partners and founder and CEO of Core Media, was hired in April; his resignation was effective on December 24.

Simon, who worked at Overstock.com for 15 years, hinted at a potential business shift for the long-running media company – cannabis distribution.

“The cost of customer acquisition has plagued the cannabis industry thus far, but utilizing the High Times brand’s global audience, we should be able to monetize our traffic by connecting consumers to cannabis products at an unprecedented scale. Like millions of other people, I have trusted High Times for years and I can’t wait to use my experience to help develop the next iteration of our business: delivering the best products into consumers’ hands.” – Simon, in a statement

Adam Levin, who will remain in his role as executive director following the shakeup, said during Simon’s tenure at Overstock.com she increased revenues from $20 million to over $2 billion.

“Stormy Simon, who rose through the ranks at Overstock.com during her 15-year tenure with the company, has extensive international business relations and marketing experience and is highly skilled at breaking down and rebuilding departments,” Levin said in a statement.

Simon will earn $300,000 per year in the new role; however, that base salary will be fixed at $215,000 at the onset until the company has raised an additional $10 million, after which Simon will be paid the remainder. Additionally, Simon can earn an additional $225,000 in annual performance bonuses and purchase up to 200,000 shares of common stock at $11.00 per share.

Last month in a Securities and Exchange Commission filing, the company said there was “substantial doubt” about its ability to continue operations due to “recurring operating losses, net operating cash flow deficits, and an accumulated deficit.”

In the report, Hightimes Holding had a net loss of $11.9 million on revenue of $10.7 million for the six months ending on June 30, 2019, along with $105.2 million in debts.

In late October, the cash-strapped company laid off the majority of DOPE Magazine’s Seattle, Washington editorial team, which Fox at the time called a “strategic decision.” High Times acquired DOPE last year for $11.2 million. In addition to DOPE, High Times also purchased Green Rush Daily and CULTURE magazine last year for $7 million and $4 million, respectively.

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Ben Britton: Developing Top-Tier Solventless Cannabis Solutions

Through constant efforts to enable cannabis professionals and at-home enthusiasts alike, the multiple solventless rosin presses from PurePressure have become renowned as industry-leading rosin solutions. We recently caught up with Ben Britton, PurePressure’s CEO and lead engineer, to discuss the company’s various offerings, he and his team’s journey as their products gained traction in the cannabis space, and more.

Check out the written Q&A below!


Ganjapreneur: When was PurePressure first imagined, and how long passed between the initial idea’s forming and the release of the company’s first rosin press?

Ben Britton: The idea of creating a press came before the idea of PurePressure. In 2015 Josh, an old childhood friend, approached me looking for a custom rosin press. We started talking, prototyping and within a few months had a concept that achieved higher yields than we had ever seen before. The efficiency and yield improvement we had gained sparked the interest in turning the prototype into an actual product and by the spring of 2016 PurePressure began selling its first products.

What have consumer reactions been like, so far?

Since day one we have had an intimate relationship with many of our customers. We are trying to solve problems in a new and evolving landscape. There is no one better to give us feedback to improve our products than the customers that trusted us with their own business. For this reason alone we have had an overwhelmingly positive customer experience yet we still we work on improving that experience day in and day out.

Could you describe the R&D process for developing a new rosin press, or improving/expanding on an existing model?

Every project for us starts with a set of requirements. At the top of that list is uncompromised quality and reliability. Using that framework, we try to develop a piece of equipment that will repeatedly produce the highest quality solventless concentrates possible without stripping away the elements of the process that matter most. We are dealing with a plant that has an almost infinite ability to change from batch to batch. Our goal is to provide the proper tools to handle all of these variances. We try to give the user as much control as possible but also allow them to dial in the process, and then step away and press repeat. It is a delicate balance of art and science that creates the most enjoyable and profitable user experience. What that boils down to is a lengthier R&D process but the end result is greater than the sum of the parts.

What’s the biggest obstacle you face or have overcome as a commercial cannabis rosin press manufacturer?

Early on during the formation of PurePressure, we spent a lot of our time educating the world on the viability of solventless extraction. In the face of many other processes, it was often looked at as the small batch artisanal approach to manufacturing. As time went on the community started to see some of the intrinsic benefits of solventless extraction, such as the extremely low barrier to entry, large batch sift and ice water extraction capabilities, short cycle times and minimal if any post-processing required to achieve a consumable product. We are just seeing the tip of the iceberg here and we at PurePressure are extremely excited to continue to lead the development of solventless processing.

How many press designs has PurePressure released at this point, and are you planning any new releases in the future?

Currently we have 4 different press models in two categories: pneumatic and manual operation. We have found these models to fit anyone’s needs from the at-home medical patient to a large scale production facility. As the scale of the operation increases we have a few tricks up our sleeves. For example, a single operator can run up to 3 of our automated presses simultaneously. With short cycle times and automated pressure and temperature control, our presses can make quick work of a pile of raw material. That said, innovation is in our blood and we have some really cool things in the works to further streamline the processes for optimal efficiency.

What type of customer feedback was the most helpful in steering your product design?

We pay very close attention when hearing about the struggles of our customers. As a designer, we strive to make products that are intuitive, functional, reliable and efficient. Getting the perfect blend of these can only happen with iteration and fine-tuning. When someone is struggling with a product or process we see that as an opportunity for improvement. Sometimes that means we can improve the product, but other times it may be as simple as education and proper communication. Either way, we want to hear from our customers and continue to provide the very best solutions for them to be successful.

Which strategies have worked best for educating cannabis operators and consumers about the advantages of solventless extracts?

Sharing cannabis education is still a bit of a challenge in the community. Not every forum is available to the cannabis community, mainly due to legislation. That being said, a few channels have thrived including Instagram, YouTube, and public blogs. We utilize all of these but rely heavily on the PurePressure website to provide an organized platform to learn as much or as little as you want about solventless extraction. We spend every day perfecting solventless extraction and strive to share that knowledge with the rest of the world so that solventless concentrates are available to anyone, everywhere.

We actually received and got to spend a little time with a PurePressure Helix Press last year and were especially pleased with not just the quality, but the simplicity of operating the press — could you elaborate on how much of that simplicity is by design, or is that just the nature of rosin pressing?

In concept, rosin pressing is simple. Heat plus pressure, a filter element and voila…oil! Raw material is placed inside a filter bag, the heat from the platens liquifies the oil and the pressure mobilizes it and forces the oil out of the filter element. This concept doesn’t really change all that much when looking at the many SKUs (sauce, shatter, wax, budder, diamonds, vaporizer products and more) that can be produced on a quality rosin press. The science comes into play when creating a recipe for a specific material. Every grow is unique, sometimes one side of the room is different than the other. With the right tools, we can easily dial in a recipe for a new raw material. This is where the Helix press is truly in a class of its own. It shines in recipe development, utilizing an industry first integrated load cell for force measurement. The custom designed food-grade bearing assembly gives the operator the ability to feel the hash and only apply as much pressure as is needed. The goal was to make a tool that is intuitive and simple to operate without sacrificing the precise pressure and temperature control required to achieve consistent and repeatable results. We believe that the Helix press delivers all of this with an additional patent pending feature that is a first for the rosin market, end point detection. Utilizing positional force application in combination with our integrated load cell we can determine when a press cycle is complete and all of the oil has been extracted. Many labs are using the Helix for recipe development and then scaling those recipes up and running one or multiple automated Longs Peak presses for production. Ultimately, we try to spend more time in development so that when it gets into the hands of the user they have the same experience that you did.

What do you hope the future holds for both PurePressure as a company and the cannabis space as a booming new industry?

I speak for everyone at PurePressure when I say that we are beyond grateful to be able to do what we do. Every day we come into the office and put our heads down to find new and innovative solutions for producing solventless concentrates. That is our only goal and it keeps the team focused. We have seen great strides in the growth of solventless and we want to keep that momentum until you can walk into any dispensary and find quality, solventless concentrates. Statistics have proven that these SKUs sell and help build a stronger brand. Having a versatile portfolio is important as an extractor and we see the success of our customers as direct proof. As far as the future goes, we have just scratched the tip of the iceberg. PurePressure has exciting new developments coming in all areas of solventless extraction. Stay tuned!

What has been your proudest moment or biggest achievement in the cannabis space, so far?

At PurePressure we work with a huge variety of customers. Some of these customers are medical patients that use our equipment to fill their needs and make their treatment regiment more affordable. I have friends and family members taking advantage of our Helix press for this very reason. Hearing their success stories and the successes of the businesses that are operational because of the products we provide is what keeps me going every day.

What advice would you offer to entrepreneurs who are considering entering the cannabis or cannabis-adjacent space?

The cannabis landscape is an almost limitless opportunity for product development right now. Focusing on ONE of those problems can be the hardest thing to do sometimes. Too often in cannabis we see solutions that only exist to drive profits for the manufacturer or retail sales. Those products often come quickly and leave just as fast. Look to solve problems that the customer experiences every day. Put yourself in their shoes and find a way to make the process better or more efficient. If you can support your customer all the way through, success in your own business will quickly follow.


Thanks, Ben, for chatting with us and sharing your industry experience and expertise! To learn more about PurePressure and its various solventless cannabis offerings, visit GoPurePressure.com.

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Chicago Airports Install ‘Cannabis Amnesty’ Boxes

So-called cannabis amnesty boxes have been set up at Chicago’s O’Hare and Midway airports at the end of every federal Transportation Security Administration checkpoint, Block Club Chicago reports. Chicago Police Department spokeswoman Maggie Huynh indicated the boxes would be checked regularly by the Chicago Police Department who would file reports on whatever they find inside and then disposed of.

“The boxes are where travelers can safely dispose of cannabis and cannabis products prior to travel, as they still remain illegal under federal law.” — Huynh, to Block Club Chicago

In 2018, California’s LAX airport said they would allow passengers 21-and-older to carry cannabis through the airport but the products would not be permitted through TSA checkpoints. Toronto, Canada’s Pearson International Airport has also installed cannabis disposal bins for travelers leaving the country, prompting people on social media to declare the airport had set up “free weed bins.” Airport officials called that description “resoundingly incorrect.”

“Once something goes into the container, it doesn’t come out,” Greater Toronto Airport Authority spokesperson Robin Smith told Gizmodo in 2018. “The new cannabis disposal containers will be securely closed to allow deposits into them, with nothing taken out. These containers will continue to be monitored.”

Following the installation of the boxes in Chicago airports, comedian Hannibal Buress joked that the new boxes are “a waste of metal.”

Following the launch of recreational sales in Denver, Colorado, city airport officials banned the sale of cannabis-themes souvenirs; the airport had already banned cannabis possession on airport property.

Last year the TSA said some cannabis products – including hemp-derived CBD and cannabis-derived pharmaceutical Epidiolex – would be allowed on board airplanes in checked luggage. The agency’s policies don’t direct its agents to search for cannabis or other illegal drugs but would “refer the matter to law enforcement” regardless of whether the airport’s home state had legalized cannabis.

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Aurora Lists Greenhouse for Sale Amid Stock Price Plunge

Licensed Canadian cannabis company Aurora Cannabis is selling one of its greenhouses at an asking price of C$17 million, according to a Barron’s report. An Aurora representative indicated the non-operational greenhouse was “inherited” by the company following its 2018 acquisition of MedReleaf and “would require retrofit and significant capital investment in order to meet Aurora’s production standards.”

MedReleaf had purchased the greenhouse in 2018 for $21.5 million in cash and 225,083 shares of stock, according to a Financial Post report.

“The company has taken decisive steps to rationalize capital expenditures and align our cultivation footprint to current demand, including selling the Exeter facility. We expect that our production capacity, including the anticipated completion of six grow rooms at Aurora Sun to be sufficient for near term demand.” – Aurora, in a statement to Barron’s

Last November, Aurora announced it would be stopping construction on the Aurora Sun facility along with a facility in Odense, Denmark, according to the Post.

The listing comes as Aurora has seen its stock price plunge 63 percent over a 52-week period. The 2018 all-stock MedReleaf deal was valued at C$3.2 billion and reportedly gave Aurora a production capacity of 570,000 kilograms (about 1,256,635 pounds).

Bill Kirk, executive director at MKM Partners, an institutional research company, said selling the greenhouse at the asking price would only represent two weeks of cash burn for Aurora. He added that “with profitability timing uncertain, Aurora’s obligations will continue to be difficult to meet.” Kirk noted that the firm is also “discouraged with the visibility” of Aurora and that “investors were unaware” the company was trying to sell the Exeter greenhouse.

The greenhouse would be the third tangible asset Aurora has decided to sell or put on hold since the company was founded in 2015, the Post reported.

Daniel Sax, the founder and CEO of cannabis real estate investment company Sensi Properties, told the Post that while new agricultural companies are “certainly” looking for new greenhouse space, Aurora’s price might be high.

“Prices being paid a year and a half ago were way above traditional costs on agriculture greenhouses,” he said in the report.

Aurora stock closed down 5.24 percent following reports that the Exeter facility was put on the market.

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Utah Announces 14 Medical Cannabis Pharmacy Locations

The Utah Department of Health has chosen the locations of the state’s fourteen medical cannabis “pharmacies.” Ten applicants were awarded licenses out of a pool of over 150 applications from 60 different companies. Regulators considered the applicants’ experience with medical cannabis, behavior in other jurisdictions, the extent that the applicants could make medical cannabis affordable, and the applicants’ operation plan viability.

The licenses are divided into two groups. Eight locations may open after March 1, while the remaining six must wait until July 1 to open. The state was divided into four geographic regions to assure patient access, however, large parts of the state are left without a “pharmacy,” leaving the door open for possible delivery services at a later date. 

“We feel like that was a good thing for the state of Utah that there was so much competition,” Richard Osborn, director of the Utah Department of Health’s Center for Medical Cannabis, told the Salt Lake Tribune. “We feel like we’ve got a good set of applicants that come to us with a lot of confidence in what they’re doing and a lot of knowledge and expertise.”

“The Utah Department of Health is committed to ensuring patients have safe and reliable access to medical cannabis and we are confident the companies selected are best prepared to meet the needs of Utah patients and provide the best value to Utah communities.” — Utah Department of Health official statement

Some applicants still must submit financial information to the state and pass background checks, as well as pay the state’s $50,000 license fee and, in some cases, get local approval for their pharmacy locations.

A list of successful applicants and their proposed locations can be found on the Utah Department of Health website

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Illinois’ First Post-Legalization Cannabis Arrest Made for Underage Possession

The Brown County, Illinois Sheriff’s Office has reportedly made the first cannabis-related arrest in Illinois following the January 1 legalization in the state, according to a KHQA report. The sheriff’s office said an 18-year-old was cited for possession of adult-use cannabis in a motor vehicle after being stopped for failing to use a turn signal.

Cannabis use and possession in Illinois is only legal for adults 21-and-older. The laws require that transported cannabis be stored in an odorless, childproof container. Under the law, possession is now a civil infraction with a $100 to $200 ticket with increasing fined and penalties – including felony charges – for subsequent violations, based on the amount of cannabis one is caught with.

The arrest comes about a week after Democratic Gov. J.B. Pritzker pardoned 11,017 people for low-level cannabis convictions. His office said that there are another 70,000 records eligible for relief due to the recreational cannabis laws passed by the legislature last year.

The day after legal cannabis sales commenced in Illinois, law enforcement agencies in McLean County told the Pantagraph that they had no incidents of cannabis-related crimes or driving under the influence of cannabis.

Normal Police Chief Rick Bleichner told the Pantagraph that it was “no surprise” that none of the county’s agencies “had an arrest based on anything over the 30-gram limit” one day after legal sales commenced.

Both the Illinois Sheriffs’ Association and the Illinois Association of Chiefs of Police opposed cannabis legalization.

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Murky Waters: How “Nano” CBD Misleads Consumers

The CBD industry is both exceedingly popular and exceptionally under-regulated. This combination has led to a surge of products entering the market, from CBD workout gear to infused pillows. However, with the lack of regulatory oversight many consumers have questioned whether the labels of these cannabinoid-infused products can be trusted. In fact, the FDA just warned 15 companies for illegally marketing and selling CBD products.

The Leafly exposé

In Summer 2019, Leafly published a deep dive investigation into this new industry, bringing 47 CBD products to a third-party laboratory on a mission to find out how much CBD they actually contained. In the shocking results, only about half of the products tested contained within 20% of the CBD that was labeled. Among those that failed, all four of the following CBD water products tested below 20%, with three out of four containing absolutely no CBD.

  • Mountjoy Sparkling Water
  • Fresh CBD Water
  • Herbal Springs
  • CBD Living Water

Each of these products were analyzed by Redmond-based testing lab Confidence Analytics for Leafly’s investigation. Mountjoy, Fresh, and CBD Living tested at 0% CBD while Herbal Springs tested at 7 mg CBD rather than the 10 mg that was advertised. All four CBD water products claim to use nanotechnology to emulsify CBD, resulting in equal distribution throughout a large quantity of liquid.

CBD products that boast of nanotechnology are primarily referring to nanoemulsion methods that are widely used already, in salad dressings, for example

The plot thickens

Test results for CBD Living Water were also recently shared with The Blacklist XYZ (a user-generated cannabis news outlet) by an anonymous party who claimed that there was no CBD in the product, igniting a firestorm of comments on social media on the heels of Leafly’s investigation. Digging deeper, we also found an earlier independent investigation from KGW8, a Portland-based TV station, which had also hired a third-party lab and found zero CBD in the “infused” bottled water that they tested.

In a PDF that is now published alongside test results for CBD Living’s infused water, the company states that they have “provisionally concluded” that the nano-emulsified CBD in their product is only verifiable through a special process they describe as “BY INPUT,” and that standard HPLC tests will not be able to detect their CBD because the particles are too small.

What does the science say?

To provide clarity, Confidence Analytics Operations Director Pat Reynolds took the time to answer some of our questions about the process of testing infused beverages, the methods used in the process, and what “CBD nanotechnology” actually means.

According to Reynolds, “nanoemulsion” — referring to an emulsion whose droplet sizes are in the 20-200 nanometer range — is not the same thing as “nanotechnology,” which is the field of engineering that deals with the manipulation of individual atoms and molecules.  He disagrees with the association that many of these brands have drawn, stating, “Nanoemulsions are produced by high-shear mixing… I guess you could call that a form of nanotechnology, but to my mind, that is a bit of a stretch.”

Reynolds disagrees with CBD Living’s claim that the CBD in their products would be undetectable after nanoemulsion. He explains:

“A CBD molecule is a CBD molecule. If you break it up into smaller fragments, it is no longer CBD and will not act like CBD. Adding ‘nano’ in front of the word does not change the molecule itself. Even if a beverage is presented as a nanoemulsion, when the lab adds a solvent as part of their extraction process, this causes the emulsion to break and anything encapsulated in the nanoemulsion will be visible to the lab’s instruments.”

Ganjapreneur reached out to CBD Living for comment, but the company had not yet responded by the time of this article’s publishing.

Different labs, different results

While CBD Living maintains that their nano-emulsified CBD is undetectable by most labs, they do provide test results alongside their infused water product — the most recent of which is dated August 7, 2019. The third-party laboratory that provided the testing certificate is Advanced Botanical Consulting & Testing, Inc., or ABC Testing, a California-based lab that specializes in testing beauty products, pharmaceuticals, and nutritional supplements. However, a brief investigation of publicly-available information about ABC Testing yielded some interesting results.

On June 4, 2019, ABC Testing was served with an official warning letter from the FDA following an inspection that resulted in four serious violations. In that letter, the FDA stated that the same violations were prevalent after an inspection of ABC Testing in 2012, implying that no action was taken by the lab after the first letter was received.

In total, the violations that ABC Testing was warned about included:

  1. Failure to establish and document the accuracy, sensitivity, specificity, and reproducibility of their test methods.
  2. Inability to ensure that laboratory records included complete data derived from all tests that are necessary to be compliant with established standards.
  3. No control exercised over a computer or related systems to ensure that only authorized personnel can institute changes in master products and records.
  4. Failure to routinely calibrate, inspect, or check equipment according to a written program designed to assure optimal performance and failure to maintain written records of calibration checks or inspection of equipment or computers used to manufacture, process, pack, and hold pharmaceutical products.

Ganjapreneur reached out to a compliance officer from the FDA, who explained that the case is in review and considered “open,” so they were unable to discuss any specifics. However, they did note that once the FDA has verified that “corrective and preventive actions” were taken at ABC Testing and those corrections are deemed adequate, the lab will receive a Warning Letter Close Out (WLCO). No such actions had been approved to date.

Hemp CBD products have taken the country by storm but there remains little regulatory oversight for the industry.

These aren’t the only issues related to the management and protocols in place at ABC Testing Inc. In fact, multiple sources claim that the company has a history of falsifying lab results.

According to a Trust Transparency report, in 2016 ABC Testing performed microbial analysis on a stool-softener drug and provided a certificate of analysis concluding that the bacteria Burkholderia cepacia (B. cepacia) was not present. When the FDA and CDC tested samples of the same lot, however, the agencies found Burkholderia cepacia (B. cepacia). This strain genetically matched one that was involved with up to 60 cases of illness and death directly related to the batch of stool softeners that ABC Testing had cleared.

Former employees of ABC Testing have also commented online that the company’s test results aren’t always 100% factual. In public reviews posted on Glassdoor, three separate individuals state that the lab’s supervisor changes test results to meet customer requests. The company has a 2-star rating overall, based on a total of 15 different reviewers.

Despite having received multiple warnings from the FDA dating back over 7 years, ABC Testing is still licensed and continues to operate, providing certificates for a wide variety of products ranging from CBD brands, to cosmetics, pharmaceuticals, and nutritional supplements. And months after Leafly’s expose and multiple other reports, CBD Living Water is still available via the company’s website, accompanied by its certificate from ABC Testing.

What’s a consumer to do?

Cannabis industry insiders have been advising friends and family for years to be cautious about which CBD brands to trust and what to avoid. One of the most frequently repeated recommendations to new CBD buyers has been to purchase from brands that publish third-party test results online, but it’s now clear that this is not enough. Consumers must also research the people behind the products, the claims used to market the products, as well as the labs that have certified those products. People who follow the industry may be able to assist those in their immediate circles, but this is not a realistic expectation for someone who is looking to purchase CBD online after reading testimonials or hearing about it from their neighbors.

The idea that the CBD landscape is vastly under-regulated and over-hyped is nothing new.  However, the fact that FDA-approved testing labs can operate for years after receiving multiple warnings reveals that the risk to consumers extends far beyond the world of CBD. More than anything, this revelation suggests that consumers should not assume that any product is safe just because it is packaged professionally and presented to them in a familiar retail or online-shopping environment.

 

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Low-level Cannabis Cases Fall 66% in Texas After Legalizing Hemp

Since Texas legalized hemp production on June 10, 2019, the number of cannabis possession cases filed in the state have fallen nearly 66 percent, according to a report from The Facts. According to the report, in May police throughout Texas filed 5,688 misdemeanor cannabis cases; that number fell to 1,919 by November.

According to the report, law enforcement agencies in Texas are expected to roll out testing procedures to differentiate between hemp and THC-rich cannabis; however, there are tens of thousands of low-level cannabis arrests made in the state every year and Shannon Edmonds, director of governmental relations for the Texas District and County Attorneys Association, told The Facts that if tests were requested for all of the state’s cases every year, the Department of Public Safety would be inundated with “such a huge backlog that it would likely never get caught up.”

In July, nine out of 10 of the state’s most populous counties indicated that they would drop or not prosecute low-level cannabis cases following the passage of the hemp law because law enforcement agencies are unable to distinguish between hemp and psychoactive cannabis which casts a reasonable doubt over criminal proceedings. In response, Gov. Greg Abbott, Lt. Gov. Dan Patrick, House Speaker Dennis Bonnen, and Texas Attorney General Ken Paxton – all Republicans – sent a letter to district and county attorneys urging them to continue prosecuting the cases.

While law enforcement agencies do have the option to send cannabis samples to laboratories to determine THC concentration, it can cost hundreds of dollars for the tests and even more to have laboratory employees need to testify. Edmonds said it “can be hard to justify” those costs for a misdemeanor.

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Tech Trade Show Censors Award-Winning Cannabis Device

A smart storage device for cannabis designed by Keep Labs is the first cannabis-related company to ever win an award from CES; however, the firm was banned from using the word “cannabis” on the CES show floor and ultimately declined to exhibit the award-winning product, according to a Tech Crunch report.

Keep Labs’ KEEP device won an Innovation Award in the home appliances category during the CES Innovation Award; the device looks like an alarm clock but the smart storage device uses  biometric authentication with WIFI and Bluetooth connectivity to allow cannabis users to lock and unlock the device through the KEEP app with a look or touch. The app sends a push to smartphones wherever the device is accessed.

However, the Consumer Technology Association, the group behind CES, told Keep Labs that the only way they could exhibit would be if the company’s signage, marketing materials, and products displayed are free from cannabis references, products, and paraphernalia.

The device remains on the CES website and the word “cannabis” is used in the product description.

The CTA told Tech Crunch that since the tradeshow does not have a “category pertaining to the market,” no cannabis or e-cigarette products are exhibited on the CES floor.

“Given cannabis is not a category at CES, the company was able to exhibit under the terms they’d showcase their product as a storage device. … Keeps Labs fit in the Home Appliances category for the Innovation Awards.” – CTA, in a statement to Tech Crunch

Keep Labs Co-founder Philip Wilkins told Tech Crunch that lumping the device with other storage solutions and home appliances without mentioning cannabis would not be doing the brand or product justice. The device was also previously banned from both Kickstarter and Indiegogo for its association with cannabis.

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Court Blocks Amsterdam Cannabis Shop’s EU Trademark Attempt

The General Court of the European Union has ruled the logo for the Cannabis Store Amsterdam as unregistrable as a trademark, calling it “contrary to public policy.” The court claims that the logo – which includes cannabis leaves and the word Amsterdam – refers to illegal drugs and the “tolerated” cannabis culture in Amsterdam.

The court did acknowledge that the leaves in question could be considered hemp leaves and while hemp is not outlawed in the EU like THC-rich cannabis, the words “cannabis” and “Amsterdam,” paired with “store” could lead some to believe that cannabis could be bought at the location.

“…The Court, whilst acknowledging that hemp is not regarded as a narcotic substance below a certain tetrahydrocannabinol (THC) threshold, concludes, in this case, that it is due to the combination of those different elements that the sign at issue draws the attention of consumers, who do not necessarily have accurate scientific or technical knowledge regarding cannabis as a narcotic substance which is illegal in many EU countries.” – General Court of the European Union, in a press release, Dec. 12, 2019

Additionally, the court says the logo in question violates EU trademark regulations prohibiting registration of trademarks that violate public policy and morality.

The trademark was first applied for in 2016 by a woman seeking to use the logo for food, drink, and catering services, according to the court documents. Her application was initially denied by the EU Intellectual Property Office; the court’s ruling upholds the initial decision of EUIPO.

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Feds Approve Ban On Flavored Vaporizers

Federal regulators have unveiled their enforcement policy on flavored e-cigarette products that includes enforcing a Food and Drug Administration-approved ban on fruit and mint flavors. According to the FDA guidance document for the industry, tobacco and menthol-flavored products will be permitted but the agency intends to crackdown on manufacturers and retailers of otherwise flavored e-cigarettes.

Last year Congress approved a measure to give the FDA oversight power over the e-cigarette industry.

Health and Human Services Secretary Alex Azar said that the nation is seeing an “epidemic of substance use arise as quickly as our current epidemic of youth use of e-cigarettes” and that under federal laws, “no e-cigarettes are currently on the market legally.”

The 2019 National Youth Tobacco Survey found that more than 5 million U.S. middle and high school students have used an e-cigarette product within the last 30 days.

Gregory Conley, the president of the American Vaping Association, a pro-vaping advocacy organization, told Vice that when the e-cigarette ban was announced in September, “the conventional wisdom was that there was little hope of stopping it.”

HHS is ordering that manufacturers of e-cigarettes and vaping products cease manufacturing, distribution, and sale of flavored pods and products within 30 days, unless they begin an application process for authorization and ensure that age verification is mandatory in stores and online. The legal age to buy tobacco products was raised to 21 by the federal government last month.

FDA Commissioner Stephen M. Hahn, M.D said in a statement that raising the legal age, paired with the e-cigarette reforms balance “the urgency with which we must address the public health threat of youth use of e-cigarette products with the potential role that e-cigarettes may play in helping adult smokers transition completely away from combustible tobacco to a potentially less risky form of nicotine delivery.”

To date, the FDA has not approved any application for flavored e-cigarette products.

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New Cannabinoid Found With 30x the Potency of THC

Researchers at Italy’s University of Salento have discovered two new cannabinoids – THCP and CBDP – and THCP could be more potent than THC, according to an outline of the study by the Growth Op. In tests on mice, researchers found that THCP showed “an affinity for CB1 receptor more than thirty-fold higher compared to the one reported for THC.”

“THCP is endowed of an even higher binding affinity for CB1 receptor and a greater cannabimimetic activity than THC itself.” –  “A novel phytocannabinoid isolated from Cannabis sativa L. with an in vivo cannabimimetic activity higher than Δ9-tetrahydrocannabinol: Δ9-Tetrahydrocannabiphorol,” Nature Research, 2019

The other compound – CBDP – reportedly doesn’t bind well to CB1 or CB2 receptors which doesn’t make the cannabinoid a priority for further research; however, the researchers said that THCP “should be included in the list of the main phytocannabinoids to be determined for a correct evaluation of the pharmacological effect of the cannabis extracts administered to patients.”

According to the study, new research will continue to test how THCP cannabinoid acts as an antioxidant, anti-inflammatory and anti-epileptic activity – the health benefits most associated with CBD.

The research brings the total number of discovered cannabinoids in the cannabis plant to 150, though the researchers note that “most of them have neither been isolated nor characterized.” The two new cannabinoids “were isolated and fully characterized” by researchers “and their absolute configuration was confirmed by a stereoselective synthesis.”

The researchers suggest that “other varieties of cannabis may contain even higher percentages” of THCP.

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Illinois Dispensaries Sell $3.2M Worth of Cannabis on First Day

The Illinois Department of Financial and Professional Regulation counted 77,128 transactions at cannabis dispensaries throughout the state, generating nearly $3.2 million on the first day of legal cannabis sales, NBC Chicago reports.

Toi Hutchinson, a senior advisor to the governor for cannabis control, called cannabis legalization in the state “a monumental milestone.”

“Launching the legalization of cannabis in a way that includes communities left behind for far too long, creates good jobs and expunges thousands of records for those who have lost out on opportunities and ends prohibition.” – Hutchinson, in a statement, via NBC

Gov. J.B. Pritzker (D) announced this week that he had pardoned 11,017 individuals with low-level cannabis offenses in conjunction with the rollout of legalized cannabis sales. The governor’s office described the criminal reform action as the “first wave” of cannabis-related expungements and Pritzker said the state’s industry “puts equity at its very core.”

“The amazing thing about that is that there’s a significant portion of these dollars that go directly into this community reinvestment fund, so we can continue to rebuild communities that have been hardest hit by the war on drugs,” Hutchinson said in a CNN report. “So sales are great but let’s never lose sight on the impact that we’re having on families around this state.”

The Illinois legislature made history last year by becoming the first state to legalize cannabis through the legislative process rather than via a voter initiative. The state is the 11th to legalize cannabis for adult use.

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What Are The Benefits of CBD Oil For Dogs?

More and more pet owners are wondering how CBD oil for dogs might be able to help. When I met my partner, his family dog was elderly and suffering from osteoarthritis and dementia. She wandered around the property only half-sure of where she was. We put her on a dropper-full of CBD oil daily with her food and the results were immense. The formerly crotchety dog would spend her mornings romping around with the puppies before calmly napping her afternoon away. 

These results are obvious but even so, people aren’t comfortable dosing their dogs without science-backed data. This is why lately veterinary researchers are focusing on the results and side effects of supplementary CBD oil for dogs. At this time there are very few studies informing pet owners and vets about what CBD oil, capsules, or topical applications actually do for canines. On top of that, further research is needed into what dosages are appropriate and possible contraindications with other canine medications, to name just a few remaining considerations. 

What Is CBD?

While there is not much solid research into CBD oil for dogs, there is quite a bit known about the compound itself. CBD is one of many cannabinoids found in the cannabis plant. The most commonly known cannabinoid is THC, but there are also hundreds of others including CBG, CBN, THCv, and more. Each of these cannabinoids interacts with receptors in our endocannabinoid system called labeled CB1 and CB2.

CBD only interacts with CB2 receptors, which are found in the body, and not with CB1 receptors, which are primarily found in the brain. This action is why inhaling or ingesting CBD doesn’t cause psychoactive, “high” effects. Instead, it interacts with the muscles, tissues, and other aspects of the body for mentally non-intrusive effects. That’s why the cannabinoid has been gaining so much popularity — in most cases, it won’t “get you high.” Consumers enjoy the ability to feel relief from stress and muscle tension without being debilitated by a psychoactive and potentially stressful experience.

Many pet owners report seeing happier and more energetic pups after they receive a dose of CBD.

The Effect of CBD on Dogs

As mentioned earlier, there aren’t many scientific studies available covering CBD oil for dogs, but there are a few. One study, which was approved by Colorado State University’s Institutional Animal Care and Use Committee, surveyed 30 male Beagle dogs around the same age and weight after being given CBD supplements of three kinds over a period of six weeks. Their goal was to identify any adverse reactions pets may experience when administered various modes of CBD supplements. 

The beagles were split into three groups who were all given CBD twice daily through three different methods. Group 1 had transdermal cream rubbed on their inner ear, Group 2 received CBD capsules, and Group 3 was administered CBD oil orally. The dogs’ vitals, urinalysis, and stomach chemistry were recorded at 2, 4, and 6 weeks. Results showed that many of the dogs suffered minor diarrhea or vomiting, but a change in housing and having strange dogs around could have contributed to that. Another important observation during the study showed that 36% of dogs had a significant elevation in alkaline phosphatase enzyme (ALP) which can be an indicator of cholestatic liver disease. This side effect was only present in canines administered the oral CBD supplements, suggesting that too much CBD oil can be an issue for our furry friends. 

Another study set out to understand the pharmacokinetics of CBD in dogs with Osteo Arthritis (OA). Twenty-two dogs were administered CBD or a placebo by their owners over a period of four weeks. At weeks 2 and 4 a baseline veterinary assessment and owner survey were completed for analysis purposes. Pups received 2 mg of CBD oil per kg of their weight every 12 hours. The conclusion showed that CBD-rich oils were a viable alternative to non-steroidal anti-inflammatory drugs. However, the oils were very expensive when applying the dosage necessary to relieve the pain of OA, making it a bit cost prohibitive despite efficacy. 

The last study that we looked at also used Beagles of median age and weight, dosing them with 2mg per kg of weight every 12 hours over a period of 12 weeks. Every 4 weeks blood was drawn from each dog and sent to a lab for analyzation. This study concluded that ingestible oil is the most effective method of administration, which a glycerol/fiber/starch-based chew also showing less impressive retention and half-life as compared to pure CBD oil. 

Their findings lead researchers in this study to speculate that CBD oil leads to better absorption and possible inclusion in a food matrix makes absorption even more effective. Most importantly, findings suggest that treating a dog for seizures requires 2.5mg/kg while treating a dog for OA requires just 2 mg/kg. No adverse reactions were noted, including the fact that no dogs showed heightened ALP levels like the first study discussed here leading to the conclusion that more research is needed to better understand a dog’s hepatic response to CBD. 

In Conclusion

Though the data in these studies varies, it does give dog owners somewhere to start. What all of these studies have in common is that no dogs suffered severe illness or issues along with the administration of CBD. Researchers all also seem to agree on a dose somewhere between 2-3mg/kg for canines. These research articles prove that taking CBD regularly can benefit dogs with OA or seizures, but it is necessary to pay extra attention to ALP levels.

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Illinois Gov. Pardons 11,000 Cannabis Convictions

Illinois Gov. J.B. Pritzker (D) has pardoned 11,017 pardons for individuals with low-level cannabis convictions in what the governor’s office called the “first wave” of cannabis charge expungements in the state.

The pardons came the day before legalized cannabis sales commenced in the state.

“We are ending the 50-year long war on cannabis. We are restoring rights to many tens of thousands of Illinoisans. We are bringing regulation and safety to a previously unsafe and illegal market. And we are creating a new industry that puts equity at its very core.” – Pritzker in a statement

According to the governor’s office, there are more than 700,000 records in the state that are eligible for relief due to the recreational cannabis laws passed by the legislature last year. In all, there are 116,000 non-violent possession records eligible for expungement through the pardon process; those records are for possession of fewer than 30 grams of cannabis. Of those 116,000 records, 43,500 records solely involve cannabis offenses and 72,500 include another non-violent offense, Pritzker’s office said, noting that only cannabis convictions will be expunged.

Under the law, the Illinois State Police identified all eligible convictions and sent those records to the Prisoner Review Board, which will verify the accuracy of the conviction records. The PRB will forward them to the governor for pardon consideration. Following the gubernatorial pardons, the PRB will forward the documents to the Attorney General’s Office, which will file petitions in the circuit courts to expunge the records.

There are approximately 34,000 records for possession between 30 grams and 500 grams are eligible for expungement, the governor’s office said, and those individuals can enlist the help of civil legal aid organizations to file motions to vacate those convictions – state attorneys can also file those motions. Some taxes derived from cannabis sales will be set aside to generate funding to help individuals expunge those records.

Additionally, approximately 572,000 arrest records that did not result in a conviction up to 30 grams are eligible for expungement; this applies to arrests for possession, manufacture, delivery, and possession with intent to deliver. Agencies will expunge all records between Jan. 1, 2013 to Jan. 1, 2020 by Jan. 1, 2021; records from Jan. 1, 2000 to Jan. 1, 2013 will be expunged by Jan. 1, 2023; and all arrest records eligible prior to Jan. 1, 2000 will be expunged by Jan. 1, 2025.

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Kentucky College Offers Hemp Production Course

Kentucky’s Maysville Community and Technical College is set to offer a course on hemp production in the spring semester, Morehead News reports. The class – Introduction to Hemp Production – will focus on foundational concepts and theory applications for field production and distribution.

The class will also focus on science-based cultivation strategies related to cannabis or hemp, such as temperatures, sunlight, soil, growing cycles, how the plant absorbs water and nutrients, and how these inputs affect the plant’s chemical make-up and genetics.

Carrie Taylor, Horticulturist and Workforce Solutions instructor at MCTC, said that after the 2019 growing season, farmers indicated a need for more information related to hemp and that the state’s industry has a variety of training demands and that the program looks to fill those needs for hemp farmers. Taylor added that farming is a mixture of cyclical demands which need to be identified by the industry as it evolves.

“Many farmers who’ve grown tobacco and other crops in this region recognize the challenges that exist in nature. They understand there are basic science-based criteria that improve crop production.” – Taylor, to Morehead News

Andrew Culbertson, CEO of Acela Bio Medical Inc, a hemp processing facility in Maysville that contracted with 120 Kentucky hemp farmers last year, said that “education is the only way to survive” in the “new and daily evolving” hemp industry.

In 2018, industrial hemp sales in Kentucky saw a three-fold increase from $17 million in 2017 to $58 million. Hemp processors purchased $18 million worth of hemp from Kentucky farmers in 2018.

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Missouri’s Social Equity Law Meets First Court Challenge

A Missouri family is suing the state’s Department of Health and Senior Services after they were denied a license to cultivate medical cannabis under Missouri’s medical cannabis law, passed in 2018.

Paul Callicoat and his family said in the lawsuit that the state violated the Constitution when they awarded only sixty out of five hundred licenses on December 26th. The plaintiffs say the state’s cap of sixty licenses violates the state’s “Right to Farm Act,” passed by Missouri voters in 2014.

Additionally, they claim the Department of Health and Senior Services scoring system that awarded bonus points to applicants in economically depressed zip codes went beyond the agency’s authority. In a hearing on Monday, a Cole County Circuit Court judge took the suit under advisement

“We appreciate the opportunity to be heard by the court. We proposed a sensible resolution that provides for an efficient and transparent process for licensure that citizens can have confidence in. It ensures patients also will have access to the high-quality, safe and effective medical marijuana that they need and deserve.” — Paul Callicoat, in a public statement

Missouri is not the first state to try and use newly passed cannabis laws to improve social equity in the cannabis industry. Illinois included social equity provisions in its recently launched adult-use cannabis market, as did California. 

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South Carolina Destroys Seized Hemp Crop After It Tests Hot

South Carolina police who seized a more than 180-pound hemp shipment headed to from North Carolina to Texas have destroyed the crop after it tested over the legal limit for hemp but did not press charges against the drivers, according to a WCNC report. The hemp was cultivated by Bio Lab Global, which is licensed in North Carolina, and indicated last month that the test results had been included in the shipment.

“Business was transacted in North Carolina, where we are fully licensed and continue to do good business. We have worked closely and helped educate our own local police departments on these matters, and it is a frustrating process for everyone.” — Austin Diggs, Bio Lab president, in a statement to WCNC

Wellford Police Chief David Green, whose department discovered the hemp during a traffic stop and ultimately seized it, said they didn’t want to press charges against the drivers, preferring instead to use the stop as a learning experience and an opportunity to get clarity from lawmakers about how to tell the difference between legal hemp and illegal cannabis.

“We do not want to withhold anything that’s legal from anybody,” Green said after the hemp was seized last month. “But the way it’s packaged and the way the investigation has gone up to this point we wanted to do our due diligence in making sure that it is what it’s said to be.”

Officials did not indicate what THC levels the plants contained, just that the levels surpassed the 0.3 percent legal limits. The shipment was headed to a Texas hemp distributor who said he paid between $20,000 and $30,000 for the product.

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