Ganjapreneur.com

Illinois Cannabis Market Launch Brings Happy New Year

1/01/2020

On January 1, 2020, adult-use cannabis is officially available for purchase in Illinois. Starting today, Illinois residents 21 and over can legally purchase and carry up to 30 grams of dried flower, 5 grams of concentrates, and up to 500 mg of THC in edible form. Non-residents and tourists will be able to legally carry half those amounts. Cannabis consumption is legal in residences with landlord permission and on-site consumption lounges at dispensaries and smoke shops.

HB0902, also legalizes and regulates “cannabis establishments” and “cannabis product manufacturing facilities” across The Prairie State. The bill also includes provisions to legalize the cultivation, handling, and sale of cannabis and cannabis-derived products by licensed cultivators, testing labs, and retailers. The industry will be managed and regulated by the Department of Agriculture and the Department of Financial and Professional Regulation.

The landmark legalization bill was the first to be instituted by a state government — every other state that has established a legal cannabis market has done so through a citizen-led ballot initiative. However, issues have nonetheless risen to plague the state as it attempts to set up an infrastructure for what is projected to be a $2 billion industry.

Three years ago, the state voted to decriminalize the plant, which has led to a steep drop in arrests in the Chicago suburbs. This correction is set to continue throughout the year, starting December 31, 2019 when Governor Pritzker pardoned 11,017 cannabis misdemeanors across 92 counties. There are other criminal reform elements to the bill that also include social equity applicant programs which will help applicants from areas that were disproportionately impacted by the war on drugs get involved in the industry.

However, many believe that state-licensed dispensaries won’t be able to support the multi-billion dollar industry. For example, only the state’s current medical dispensaries will be online for market launch, but Gov. Pritzker said the slow start will save space in the industry for social equity applicants.

“Every state that has legalized cannabis has seen high demand and long lines in its earliest weeks, and to be sure, our state will too. But unlike other states, in Illinois, we purposely built a system where the market has room to grow, so that entrepreneurs, including especially those from the communities devastated by the war on drugs, will have real opportunities in this industry.” — Gov. J.B. Pritzker, in a speech celebrating the mass pardoning

The 55 medical dispensaries in operation were the first offered the ability to become state-licensed for recreational sales; so far, just under 40 have completed the process. These will be the dispensaries supporting the first few quarters of recreational sales in the state. License applications for recreational cannabis dispensaries were distributed in the fall; these are due by January 2, 2020, with new stores potentially open for sale by May 2020.

Applicants will be judged by a point system based on 10 factors: labor, diversity and environmental plans, security, business plans, experience, employee training, and the owners’ status as a veteran, an Illinois resident, or a social equity applicant. The first 75 applicants with plans that best engage the community will be granted licenses. In 2021 the state plans to bring on 110 more licenses taking geographic distribution into consideration.

Until then, the projections against the current supply show that the state is likely to run out of product during the first few weeks or months of legalization. In response, the 18-21 licensed cultivators are working on expanding capacity into what all are hoping will be a happy New Year.

End

Sanders’ Cannabis Plan Would Exclude Big Corporations

1/01/2020

When it comes to cannabis, Bernie Sanders has been the most consistently pro-legalization politician on Capitol Hill. As a key part of his 2020 presidential bid, he has crafted a plan which would shape the industry for years to come with points of action aimed at leveling the playing field and keeping it level.

Sanders’ legalization plan is designed to clap back at the War on Drugs by vacating and expunging past cannabis convictions. Legal cannabis revenue would be put back into communities that have been disproportionately hit by the war on drugs. One $20 billion grant program would be put in place to provide business grants to entrepreneurs of color through the Minority Business Development Agency. Another $10 billion grant will focus on businesses at least 51% owned by individuals who have been arrested or convicted of cannabis offenses.

Team Bernie has also listed six points of action that are aimed at protecting the industry from being immediately taken over by major corporations. These include:

Provide resources for entrepreneurs to incentivize starting cooperatives and collectives that will bolster economic growth and create jobs in local communities.
Enforce the prohibition of products and labels that appeal to young people.
Companies who have formerly created cancer-causing products or have been found guilty of deceptive marketing will be banned from the industry.
Tobacco and cigarette corporations will be banned from entering the cannabis space.
Market share and franchise caps will be put in place to prevent profiteering and consolidation.
Partner with the USDA to establish safety inspection and quality control processes for producers, creating safety and trust in legal marijuana products.

Sanders argues that points listed above, in combination with the community grants and expungements, would lay a foundation for a diverse collection of small businesses to forge the legal cannabis industry. Although big tobacco companies have already begun making moves into the industry, these statutes on legalization could establish equality where it was previously lacking.

End

Michigan Approves Three Cannabis Delivery Businesses

12/31/2019

Michigan regulators have approved three businesses for home cannabis delivery, the Associated Press reports. Customers can order up to 2.5 ounces of flower and 15 grams of concentrates to their homes – the limits are the same for in-person purchases – although the agency did not indicate when delivery services would commence.

The Michigan Department of Licensing and Regulatory Affairs approved home deliveries by Lit Provisionary in Evart, Battle Creek Provisioning in Battle Creek, and Nature’s Releaf Burton in Burton, the report says.

Customers must be 21-or-older to purchase cannabis in Michigan and delivery orders must be placed online. Most payments will be made online, but delivery services are allowed to accept cash.

Delivery drivers must also be 21and cannot carry more than 15 ounces at a time. Cannabis products must be secure if left in a delivery vehicle and all vehicles must be equipped with GPS.

The approval comes about a month after the launch of adult-use cannabis sales in the state but about 78 percent of the state’s municipalities do not allow recreational cannabis operations. Cities and towns that do not allow adult-use businesses do not get a share of the 10 percent excise tax imposed on cannabis sales.

In the first full fiscal year, Michigan cannabis sales are expected to generate $180.5 million in taxes, according to the Michigan Senate Fiscal Agency. By 2022-2023 those figures are expected to reach $287.9 million.

End

Nevada Testing Lab Loses License After Approving Tainted Products

12/31/2019

A second Nevada cannabis testing lab has lost its license after regulators found the company approved products for sale that had elevated levels of mold, yeast, bacteria, and fungus, the Reno Gazette Journal reports. Cannex Nevada LLC approved the flower products which were cultivated by Nevada Wellness Group LLC, ACC Enterprises LLC, and Integral Cultivation LLC and subsequently sold at dispensaries in Carson City, North Las Vegas, Las Vegas, and Mesquite. The products were harvested between March and October 2019 and sold between October 5 and December 27.

In November, officials suspended the license of Certified Ag Labs LLC after it discovered the lab had misrepresented THC levels. The Department of Taxation said products tested at the facility “may be labeled incorrectly and could contain a different level of THC than what is listed on product packaging,” according to an Associated Press report.

Rudy Gardner, a managing member of the lab, told the AP that the suspension “is as baseless as it is appalling” and that he “stands behind the data 100 percent.” The lab had its license suspended once before in December 2017 but reopened a month later. That suspension was due to the lab not understanding the new regulations, the report said.

There are no known reports of illness associated with the products approved by Cannex and regulators say that neither the dispensaries nor cultivators knew that the products exceeded allowable mold, yeast, bacteria, and fungus limits.

“(The Department of Taxation) is advising consumers who have purchased the affected marijuana to avoid consuming the products. Consumption of the affected marijuana should particularly be avoided by individuals with suppressed immune systems.” – Nevada Department of Taxation in a press release, via the Gazette Journal

A lawyer for Cannex told KLAS that the company was told by regulators their license would not be suspended and they were not given a chance to take corrective steps before they were shut down. The company plans to request an immediate hearing with the state’s cannabis regulators.

End

Arkansas Medical Cannabis Sales Top $28M in 2019

12/31/2019

Medical cannabis sales in Arkansas reached $28.13 million since the program launched in May, the Associated Press reports. According to Department of Finance and Administration figures, the state’s 14 dispensaries sold more than 4,200 pounds of medical cannabis in 2019.

In all, state regulators have licensed 32 dispensaries but just 14 were operational this year. Two more are expected to open in Texarkana in the coming days, the report says, while the two dispensaries approved for the capital, Little Rock, are expected to open early next year.

Green Springs Medical Dispensary, in Hot Springs, sold more than 1,000 pounds of the state’s medical cannabis. Owner Dragan Vicentic said the dispensary started selling one rotating product for $5 a gram following patient complaints that they could buy cannabis cheaper on the illicit market than in state-licensed dispensaries.

“Just like Walmart, you’ve got a loss leader. This is just one of those things where we say we’re going to sell one item at cost. We just say we’re going to give back to the people that got us here.” – Vicentic, to the AP

Releaf Center, in Bentonville sold 502 pounds of medical cannabis in the state during the last year; The Source in Benton sold more than 385 pounds; Harvest in Conway sold 261 pounds; and Fort Cannabis in Fort Smith sold just 15 pounds, according to state figures outlined in the report.

Once sales began, Arkansas dispensaries saw steady sales, with the only two functioning dispensaries at the onset selling more than 100 pounds in three weeks. In June, dispensaries reported sales of $2.2 million and by July sales at the state’s eight operational dispensaries topped $6.04 million.

End

Italian Supreme Court Rules Home Growing is Legal

12/30/2019

Italy’s Supreme Court has ruled that home-growing cannabis for private use is legal, according to a Guardian report. In the landmark ruling the court said narcotic laws should exclude “small amounts grown domestically for the exclusive use of the grower.”

The ruling does not outline what “small amounts” would be considered legal by the court. However, the case stems from a case dealing with the cultivation of two cannabis plants. In Italy, cannabis containing less than 0.6 percent of THC has been sold commercially after being legalized three years ago; however, Matteo Salvini, leader of the far-right League Party has threatened to shut down shops that sell the low-strength “legal” cannabis.

Maurizio Gasparri, a Forza Italia senator which is an ally to the League, told the Guardian that they “will cancel the absurd verdict of the court” if the center-right coalition came to power.

5-Star Movement, the opposition, favors a more liberal approach to cannabis laws. Party Senator Matteo Mantero said the court’s ruling “opened up the way” and now it was up to reformers in the legislature to push for a taxed and regulated cannabis market. Mantero proposed an amendment to the 2020 budget to legalize and regulate cannabis use in the nation, but Senate Speaker Silvio Berlusconi of the Forza Italia party ruled the measure inadmissible.

Medical cannabis is already legal in Italy, although until 2018 it was cultivated exclusively by the Italian Army. Last year Pedanios GmbH, the German subsidiary of Canadian firm Aurora Cannabis, became the first company to import medical cannabis into Italy.

End

Hemp Producer Applications Open in Missouri

12/30/2019

The Missouri Department of Agriculture is accepting applications for the first season of hemp cultivation in the state in more than 70 years. The application process is already online. Potential hemp farmers must submit to officials parcel maps of the proposed crops and fingerprints along with their applications.

According to the agency, the state program will first use federal guidelines as regulations. Agriculture Director Chris Chinn said that approach would help both farmers and regulators see what works best for all of the state’s industry stakeholders.

“Industrial Hemp has been a moving target for many regulatory agencies this year. After working with producers, closely analyzing the federal requirements passed down by Congress and USDA, and incorporating our own state law, we determined that Missouri should spend the 2020 growing season learning more about what works in our state. We are confident this is the best choice for our producers in Missouri.” – Chinn, in a statement

Sami Jo Freeman, a spokesperson for the Department of Agriculture, told St. Louis Public Radio that all interested producers should be sure to wait for final approval “so that legally they are in a good spot.”

Despite federal reforms last year, law enforcement officials throughout the U.S. have confiscated hemp being transported between states. Freeman added that the new crop has been a learning experience for the industry and officials since it was re-legalized.

“Not only for the industry, but for government entities who are trying to provide opportunities for producer and industry feedback. But also strike that balance of doing our job as we see it in state government to provide the framework,” Freeman said in the report.

The agency is expected to begin processing applications on January 2.

End

Cannabis Arrests Drop Sharply in Chicago Suburbs

12/30/2019

Cannabis arrests have decreased sharply over the last three years in the five largest Chicago suburbs following state-wide decriminalization, the Aurora Beacon-News reports. Over that time, arrests for cannabis possession dropped between 63 percent and 80 percent from 2015 to 2018 in Aurora, Elgin, Joliet, Naperville, and Waukegan.

Lawmakers in the state legalized cannabis for adult use last year; however, those laws don’t take effect until January.

Some communities in Aurora, Joliet, Waukegan and Elgin have been identified by the state as having high arrest or incarceration rates since 2009; Naperville data wasn’t identified, the report says.

Arrests in Joliet dropped by 79 percent from 2015 to 2018; in Elgin by 74 percent; in Aurora they dropped 69 percent; and in Waukegan they fell 63 percent, according to the analysis of police department data by the Beacon-News. In Naperville, the rate dropped most substantially – 84 percent – but police officials warned that drop could be due to how arrests are classified.

Conservatively, cannabis-related arrests in Naperville dropped from 260 in 2015 to 42 in 2018. While in Aurora, arrests fell from 659 in 2015 to 202 in 2018, and in Waukegan, they dropped from 201 to 74. Joliet saw arrests drop from 233 in 2015 to 49 in 2018, and in Elgin from 252 to 66, according to the newspaper analysis of law enforcement data.

In addition to the state-wide reforms – which decriminalized possession of up to 10 grams – Cook County stopped prosecuting most low-level cannabis offenses in 2015.

Steven Stelter, president of the Illinois Association of Chiefs of Police told the Beacon-News that the changes forced courts to look at possession charges as “just a real minor offence” and “just throw it out” so many departments stopped making arrests for possession.

End

Study: People With Depression History More Likely to Use Cannabis

12/27/2019

New research suggests that people who suffer from depression are about twice as likely to use cannabis as people who do not experience depression, according to a Reuters report. The study by researchers at universities in North Carolina and New York found that in 2017, 19 percent of people with depression used at least some cannabis, compared to 8.7 percent of those without a history of depression.

The research covered nearly 729,000 individuals 12-years-and-older from 2005 to 2017; in 2005, about 10.2 percent of people with depression used cannabis compared to 5.7 percent who used cannabis but didn’t experience depression.

The percentage of people with depression who viewed cannabis use as risky behavior also fell from 41 percent to 17 percent during the 12-year study, compared with a decline from 52 percent to 33 percent among those without depression, according to the study published in the journal Addiction.

Renee Goodwin of Columbia University, the study’s lead author, explained to Reuters that people with depression “who perceive little or no risk associated with use have a much higher prevalence of cannabis use, relative to those who perceive higher associated risks.”

“There is some thinking that drug use is a form of self-medication of depression, or attempted self-medication of depressive symptoms.” – Goodwin, to Reuters

Additionally, people experiencing depression between the ages of 18 and 25 reported cannabis use rates of nearly 30 percent.

Goodwin suggested that “there is no evidence to suggest that cannabis use will ease depression symptoms, except temporarily and there are data to suggest that cannabis use may worsen or prolong depression. Historically, patients in treatment/recovery from depression are advised to avoid cannabis use,” she said.

According to Reuters, the study was not designed to determine whether or how depression might influence how often people consume cannabis. The study also did not take into account what effect the legalization of cannabis has had on public opinion during the 12-year period.

End

Cannabis Decriminalization & CBD Bills Introduced in Indiana

12/27/2019

Three bills have been filed in Indiana to reform the state’s cannabis laws, including a measure to decriminalize possession up to one ounce, the South Bend Tribune reports. Another bill would nullify a law approved earlier this year that banned smokable hemp and CBD, while the third would create a compliance commission to regulate CBD product licensing.

State Sen. Karen Tallian (D), the bill sponsor, explained that in Indiana cannabis possession accounts for the second largest number of arrests annually, with 22,000 people arrested for possession in 2018.

“Maybe we’re not putting people in jail in every county. But 22,000 arrests is a lot of court time, and a lot of these people will still end up with a criminal record.” – Tallian, to the Tribune

Republican Rep. Jim Lucas, who has sponsored a decriminalization bill in the House, said he “100 percent” supports his colleague’s efforts in the Senate, noting that with neighboring Michigan legalization already taking effect, Indiana citizens should be penalized for using cannabis legally out-of-state.

“That’s the hypocrisy of our policy right now,” Lucas said in the report. “We have these outdated, senseless laws on the books that make a criminal out of an otherwise responsible adult for having small amounts of cannabis.”

Lucas added that some county prosecutors in the state have already said they would no longer try low-level cannabis possession cases, saying that those “pockets of resistance” to cannabis prohibition ate “on the state level and the governor’s office.”

Late last year, Gov. Eric Holcomb said he is “just not willing to look at” cannabis legalization citing federal drug laws.

Lucas said the federal government is a “circus” and that he doesn’t agree with basing state laws on federal laws.

In 2018, the Indiana Legislature passed laws legalizing CBD sales and hemp production in the state but Tallian said that because of the subsequent measure to outlaw smokable hemp the laws are “a mess.” She said her bill to create a CBD compliance commission would be modeled after commissions that regulate alcohol and tobacco.

End

Activists Withdraw Adult Use Petition in Oklahoma

12/27/2019

Oklahoma activists have withdrawn their petition to legalize cannabis in the state due to concerns that broad legalization could have a negative impact on the state’s medical cannabis industry and the patients it serves, the Journal Record reports. Michelle Tilley, a spokesperson for the group, said they plan on rewriting the petition to include stronger medical cannabis protections and resubmitting it to officials.

Chip Paul, of Oklahomans for Health, who crafted and pushed for the 2018 voter-approved medical cannabis measure, said the legalization bill would have damaged the state’s nascent medical cannabis program.

“We’ve rolled out the most successful medical marijuana program in the country, bar none. Why in the world, in its infancy, would we mess with that? … Every state that has passed recreational has wrecked medical.” – Paul, to the Journal Record.

Oklahoma currently has more than 220,000 patients – about 5 percent of the state’s population – and officials have issued 1,500 dispensary licenses since the measure’s approval last year, the report says. In all, medical cannabis sales in the state are expected to top $350 million this year.

The adult-use petition would have allowed adults to possess up to one ounce and grow six plants while imposing a 15 percent tax on sales, along with local and state taxes. Tilley said that the group wants to be “crystal-clear” that medical cannabis patients and businesses “will not be harmed or hurt” by legalization so the organization decided to craft a new petition that would include those protections.

An attempt to get legalization on 2018 Oklahoma ballots failed after activists failed to gather enough signatures by the deadline.

End

Senate Pulls Adult-Use Industry Protection Riders from Budget Bill

12/26/2019

During federal budget negotiations the Republican-controlled Senate removed several riders from the omnibus package meant to protect the legal cannabis industry, according to a Newsweek report. Although lawmakers kept in a rider that prevents federal funds from being used to enforce federal cannabis laws on medical cannabis programs, they pulled another rider that would have extended those protections to recreational markets.

The chamber also added a measure to prevent Washington, D.C. from rolling out adult-use sales – which the District legalized in 2014. D.C. relies on Congress for funding and previous budget negotiations have included similar provisions.

The Senate also rejected a measure that would have given legal cannabusinesses banking protections – similar to the protections allowed in the House-approved SAFE Banking Act. That measure has yet to be introduced in the Senate – or even sent to a committee – by Majority Leader Mitch McConnell.

Last week Senate Banking Committee Chairman Mike Crapo said he would not support the SAFE Act because, he says, it doesn’t address potency issues, marketing to children, research on the effects of cannabis, and potential money laundering issues.

Prior to the passage of the bill in the Senate, negotiators from both chambers removed provisions that would have prevented veterans working in the cannabis industry from discrimination by the U.S. Department of Veterans Affairs when applying for home loans, and another measure that would have allowed individuals with a single low-level cannabis offense from re-enlisting in the military.

End

USDA Rolling Out New Pilot Insurance Program for Hemp

12/26/2019

The U.S. Department of Agriculture is rolling out a new pilot insurance program for hemp, which will provide Actual Production History coverage under the agency’s Multi-Peril Crop Insurance program. The new insurance program is in addition to federal crop insurance, which the USDA said hemp farmers would have access to in August.

The MPCI coverage includes hemp cultivated for fiber, grain, and CBD for the 2020 crop year but only for eligible producers in certain counties in Alabama, California, Colorado, Illinois, Indiana, Kansas, Kentucky, Maine, Michigan, Minnesota, Montana, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Tennessee, Virginia, and Wisconsin.

To be eligible for the pilot program hemp producers must comply with applicable state, tribal or federal regulations for hemp production, have produced hemp crops for at least one year, and have a contract for the sale of the insured hemp. Producers also must be a part of state or university research pilot, as authorized by the 2014 Farm Bill, or be licensed under a state, tribal or federal program approved under the USDA Agricultural Marketing Service.

USDA Risk Management Agency Administrator Martin Barbre said in a statement the agency is looking forward to feedback from hemp producers about the pilot program.

Additionally, beginning in 2021 hemp plants will be insurable under the Nursery Crop Insurance and Nursery Value Select Pilot Crop programs.

End

New Jersey Medical Cannabis Expansion Stalled by Lawsuit

12/26/2019

A lawsuit by 25 New Jersey medical cannabis business applicants has forced regulators to halt its application review for the expansion of the state’s medical cannabis program, according to an NJ.com report. The expansion bill was signed into law by Gov. Phil Murphy (D) in July after lawmakers failed to pass comprehensive recreational legalization reforms.

Joshua Bauchner, an attorney who filed the lawsuit on behalf of five groups, called the decision to grant the stay by a two-judge panel “a big win.” The plaintiffs say that there were unfairly penalized because a glitch in the Department of Health’s website prevented applicants’ file attachments from being opened.

“We’re very pleased that the court is staying issuance of the licenses pending our appeal in the hopes that it will allow for a merit-based review, so the best applicants are awarded licenses to serve the patient population.” – Bauchner, to NJ.com

Medical cannabis regulators in New Jersey disqualified 51 of more than 190 applicants in the recent licensing review round for a variety of issues, including lack of local approval and site control, corrupted files, and non-payment of fees.

Bauchner said the “best way possible” to avoid short-circuiting the application process would be for the Health Department to allow his clients to resubmit their applications.

In total, New Jersey regulators are planning to add about 109 new dispensaries throughout the state; currently just seven dispensaries are operational in the state to serve over 60,000 patients.

End

EPA Approves 10 Pesticides for Hemp

12/23/2019

The Environmental Protection Agency has approved the use of 10 pesticides for hemp cultivation, nine of which are biopesticides and one is a conventional pesticide.

Four of the approved biopesticides are produced by Agro Logistic Systems, Inc., and all contain neem oil. Three are produced by Hawthorne Hydroponics, and two are produced by Marrone Bio Innovations; both of which are fungicides.

The conventional pesticide – which contains potassium salts from fatty acids – is also produced by Hawthorne.

As EPA receives additional applications to amend product labels to add use for hemp, the agency will process those applications on an ongoing basis and update this list, regulators said in a press release.

In October, the National Industrial Hemp Council and the American Farm Bureau Federation lobbied the EPA to approve the 10 pesticides for use in hemp production. The agency did not have to seek public comments before approving the pesticides because they were already legal for use on outdoor crops and “contain active ingredients for which EPA previously determined the residues will be safe under any reasonably foreseeable circumstances.”

The Hemp Council and Farm Bureau said that they “fully support EPA’s stated position that public notification is unnecessary for ‘future pesticide registration applications that are similar to these applications and that are expected to be submitted with more regularity.’” The groups called the swift approval of the pesticides “essential” to the industry as “key crop protection tools.”

There is research underway in two states – Arizona and California – to determine which pesticides, if any, should be used in their legalized cannabis markets; however, since cannabis remains federally illegal, the EPA cannot issue federal approvals for cannabis crop pesticides.

End

Oregon Regulators Ban THC & CBD From Beer

12/23/2019

The Oregon Liquor Control Commission, the state’s cannabis regulation agency, has banned CBD and THC from alcoholic drinks effective January 1, the New York Daily News reports. Commission spokesman Mark Pettinger said that while people are using CBD for wellness, there is “little scientific evidence” about how the compound interacts with other substances including alcohol.

“We’ve wanted to address the issue of CBD getting into alcohol and because there are a lot of unknown unknowns about the effect of taking CBDs,” Pettinger said in the report, adding that the agency could reverse the decision once the federal government published guidelines for CBD in the wake of last year’s legalization of hemp.

Several companies in mostly legal states have introduced alcoholic beverages that include CBD as an ingredient, including Heineken-owned, California-based Lagunitas Brewing Company, Black Hammer Brewing, Oregon-based Coalition Brewing, and Vermont’s Long Trail Brewing Company and Green Empire Brewing, among others.

Last year, the Massachusetts Alcoholic Beverage Control Commission quashed plans by Down the Road Beer Co. to sell their CBD-infused beer – Goopmassta Session IPA – but the brew ultimately made its way to consumers but without the CBD. The federal Alcohol and Tobacco Tax and Trade Bureau also announced last year that it would not approve any alcohol formulation containing CBD or THC.

Additionally, the OLCC is “encouraging patrons and establishments to use an abundance of caution” when using CBD as a mixer in cocktails and told Willamette Week that the agency would eventually seek to ban the cannabinoid from all drinks that contain alcohol.

End

Massachusetts Lawmakers Consider Cannabis Billboard Ban

12/23/2019

A proposal in Massachusetts would ban cannabis companies from advertising on billboards, the Gloucester Daily Times reports. Sen. Diana DiZoglio (D) said that cannabis billboards flout state laws prohibiting cannabis advertising to minors.

“The goal of the Legislature was to ensure that these billboards are not going to be placed in communities where children are going to be exposed to them. But we know that isn’t happening.” – DiZoglio to the Daily Times

The town of Havervill has already forced the removal of a billboard by Weedmaps that hung over a bus station due to complaints that the ad targeted youth.

David O’Brien, president of the Massachusetts Cannabis Business Association, called the proposal “a bit surprising” because the advertising and marketing rules on cannabusinesses in the state “are already very strict.” He said the association doesn’t want to see regulations further restricting the industry’s “ability to reach customers.”

Jody Hensley, a policy adviser for the anti-legalization group Massachusetts Prevention Alliance, said the organization supports the proposed ban on cannabis billboards and contends that cannabis advertising “is tied to increased use of the drug.”

“There’s broad agreement that young people shouldn’t use marijuana, and one of the proven methods to prevent that is prohibiting advertising that reaches them,” she said in the report.

The state’s 2016 voter-approved cannabis legalization law did not set advertising limits; instead, those rules were enacted last year by the Legislature. Those rules – which prohibit TV, radio, print, and billboard advertisements unless at least 85 percent of the audience is over 21-years-old – were adopted by the Cannabis Control Commission. The advertising rules also ban coupons, free samples, prizes, discounts and the distributions of cannabis-branded merchandise.

Jim Borghesani, a marijuana industry consultant, called the rules “overkill.”

“We have to get out of this mindset that marijuana is somehow more dangerous than alcohol. It’s a legal product that should be treated the same way,” he said in an interview with the Daily Times.

Massachusetts Bar Association Chief Legal Counsel Martin Healy told the Daily Times that the cannabis industry and advertisers “would likely have a good case in front of the Supreme Judicial Court” to argue that cannabis is legal in the state and that “they should have the ability to advertise where their services are located and where people can purchase it.”

All cannabis advertising is outlawed in Maryland, following a decision last year by the state’s Medical Cannabis Commission, while lawmakers in San Diego, California are also considering a billboard ban for cannabis advertisements.

End

Calyx Peak’s Josh D Brand Dominates at 16th Emerald Cup

12/20/2019

FOXBOROUGH, MA, December 19, 2019 — Calyx Peak’s Josh D Farms put on a dominating display of genetic excellence and cultivation prowess by placing four of its strains in the top ten of the Mixed Light Flower Category, including the overall top prize for its Ice Cream Cake strain. Josh D Farms once again received industry-wide recognition at the 2019 Emerald Cup, the most respected cannabis competition in the world, this past weekend. The company won 1st place for Ice Cream Cake, 5th place for Ghost OG, 7th place for Dynasty OG and 10th place for Motor Breath in the Licensed Mixed Light Flower Category. For the second year in a row, Josh D Farms was the cultivator with the most top-ten finishes.

Founded by Josh Del Rosso, Josh D made an early mark on the cannabis scene being credited as one of the originators of Los Angeles’ OG Kush movement. Del Rosso was among the city’s first cultivators to couple hydroponic indoor growing with what would become one of the most famous cannabis varietals in history. As a result, the majority of the California cannabis market is now a derivative of the exact cultivar that was made famous by Josh D Farms.

For more than two decades, Josh D Farms has focused exclusively on cultivating products using OG Kush genetics and hydroponic horticulture techniques. Today, Del Rosso brings his rich history and expert knowledge of the strain to his connoisseur-caliber line of products. Josh D Farms is based in Southern California and operates a 235,000 square-foot cultivation facility in Santa Barbara County. The company is owned and operated by Calyx Peak Companies, a vertically integrated multi-state operator based in Foxborough, Massachusetts.

“I am honored and humbled that our team has received these awards. Hats off to Dan Wittlinger and Arnoldo Roman, who lead our growing team, for doing such great work,” says Josh Del Rosso, Calyx Peak’s Vice President of Josh D Brands. “We have made great progress since our 2nd and 9th place last year and I see continued improvement ahead, even as we scale the business”.

“Our performance in the coveted Emerald Cup year after year, is a true result of our team’s efforts, genetics, and the facility builds we have,” says Dan Wittlinger, Calyx Peak’s Director of Cultivation. Dan is also the founder of Calyx Peak’s Local brand, from which the winning strain of Ice Cream Cake was lent in collaboration with Josh D Farms.

“We are very proud of our flower products coming out of our facility,” says Arnoldo Roman, Cultivation Director at the Josh D Farm in Santa Barbara.

The Emerald Cup prides itself on bringing together the best breeders, manufacturers, cultivators, experts, and educators in the cannabis field to farmers, patients, and patrons each year. It is a community celebration that has grown to become a global movement honoring the year’s finest cannabis harvest and draws more than 35,000 attendees a year.

“This is such a great honor and a real testament to Dan, Arnoldo, and Josh,” says Ed Schmults, CEO of Calyx Peak. “The amazing thing is that we are able to do this level of quality at scale – and we expect to continue to improve even as we grow our capacity. I can’t wait to see what our farm can do in 2020!”

About Calyx Peak
Calyx Peak is a leading multi-state operator looking to lead the legal cannabis revolution. As a multi-state operator, Calyx Peak operates over 275,000 square feet of cultivation, extraction and distribution facilities across multiple states. The company launched with a small investment in Nevada and quickly expanded to four states (1 pending). Josh D and Local are two of Calyx Peak’s brands. Josh D Farms has focused exclusively on cultivating products using OG Kush genetics and hydroponic horticulture techniques. Now, carrying the legacy of OG Kush over to a new era, Josh D Farms is the hyper-specialist in producing the cleanest, clearest, connoisseur-caliber cannabis varietals on the market. For more information, please visit www.joshd.com.

For more information, please visit www.calyxpeak.com.

End

Senate Committee Chairman Pushes Back Against SAFE Banking Act

12/20/2019

Senate Banking, Housing, and Urban Affairs Committee Chairman Mike Crapo (R) is seeking public feedback on a “way to address public health and money laundering concerns” related to cannabis banking as he pushed back against the SAFE Banking Act, which was approved by the House in September.

In a statement, Crapo said he does not support the banking reform measure because it “does not address the high level potency of marijuana, marketing tactics to children, lack of research on marijuana’s effects, and the need to prevent bad actors and cartels from using the banks to disguise ill-gotten cash to launder money into the financial system.”

Crapo said committee staff is seeking input regarding public health and safety concerns, including driving under the influence of cannabis; options to combat money laundering in the space; options addressing interstate commerce; and options for the hemp industry.

The chairman indicated he would like to see potency caps on THC products if companies want access to banking services, suggesting a 2 percent threshold on all products which would apply “until each state legislature affirmatively determines the appropriate level of THC potency for cannabis and cannabis products.” Crapo would shut out producers of high potency-THC and kid-friendly edibles from banking services.

Crapo also indicated he wanted the legislation to eliminate “Operation Choke Point,” an Obama-era rule in which federal agencies relied upon a list of politically disfavored merchant categories, such as firearm manufacturers and payday lenders, with the intent of “choking off” their access to payment systems and banking services.

Crapo said that policy forced banks to stop providing financial services “to members of lawful industries for no reason other than political pressure, which takes the guise of regulatory and enforcement scrutiny.”

Crapo added that he remains “firmly opposed” to cannabis legalization both federally and in his home state of Idaho.

End

South Dakota Approves Medical Cannabis Initiative for 2020

12/20/2019

South Dakota voters will vote on medical cannabis legalization during the 2020 General Election after Secretary of State Steve Barnett validated that the campaign, New Approach South Dakota, had submitted enough signatures to qualify the initiative.

“There are no words that any of us could say right now to put the feelings we have into perspective. Thank you all for the support, for signing our petitions, for registering to vote and for sticking with us. We did it together [and] we are so grateful for all of you. Let’s push for a strong united campaign to pass this much needed law for the people of SD.” – New Approach South Dakota, in a Dec. 19 Facebook post

The proposal includes home-grow provisions – the number of which would be set by the state but would require a physician recommendation for home cultivation and a three-plant minimum, according to a Daily Republic report. Patients would be required to register with the state Department of Health and possess up to 3 ounces; cardholders from out-of-state would be allowed to obtain medical cannabis in South Dakota.

In South Dakota Attorney General Jason Ravnsborg’s statement on the measure – which is common for ballot initiatives in the state – the initiative would likely need clarification by the Legislature or the courts.

The group needed to get 16,961 valid signatures to get the initiative on 2020 ballots. It obtained 25,524, or 75 percent of those collected by the group, based on random sampling.

The initiative is the first cannabis-related campaign to get approval for the 2020 General Election.

End

South Carolina Police Seize Interstate Hemp Shipment

12/20/2019

Police in Wellford, South Carolina have seized a hemp shipment that originated in North Carolina on its way to a distributor in Texas, WYFF4 reports. The 183-pound shipment was cultivated by Bio Lab Global, a licensed hemp company in North Carolina, who called the seizure “a discouraging series of events, but not uncommon” in the hemp industry.

Bio Lab sent documentation of the products’ test results and their hemp license – which is valid until 2022 – to WYFF4 and the results were included in the shipment.

The shipment was headed to Glen McDonald, a Texas hemp distributor, who said he paid between $20,000 and $30,000 for the North Carolina hemp and that his two drivers were “traumatized” by the police. McDonald said that, although the police released the drivers, they confiscated their driver licenses.

“This is a terrible emotional deal that they’re putting us through. And it’s just not fair for other people to go through this in the future. I think that they personally need a test for the side (of) the highway when they run into this. Test it real quick, ‘have a nice day, sir.’ I understand their side – it smells like the other stuff, it looks like it, but it’s not.” – McDonald, to WYYF4

Wellford Police Chief David Green disputed McDonald’s claim, saying that the police officers and drivers were very respectful, that their licenses were returned, and that if the tests come back showing the product is hemp McDonald would have 30 days to claim it.

“We do not want to withhold anything that’s legal from anybody,” Green said in the report. “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.”

A sample of the cargo has been sent to the South Carolina Law Enforcement Division for testing. Green indicated that after the investigation, authorities would make body and dash-camera footage available to the public.

Earlier this year, the U.S. Department of Agriculture released guidance allowing hemp to be shipped throughout the U.S. even in states that have yet to adopt hemp policies.

End

Tilray Sued for $300M Over Alleged Illegal Acquisition Scheme

12/19/2019

Tilray (NASDAQ: TLRY) is being sued for $300 million in Florida over an alleged scheme to bankrupt soap company Trimax in hopes of acquiring one of its subsidiaries for pennies on the dollar. Specifically, Trimax says Tilray hoped to acquire the soap company’s CBD product line and distribution channels, which include major retailers like Walmart, according to Bloomberg.

According to the lawsuit, Tilray’s parent company Privateer Holdings attempted to convince Trimax’s owners to bankrupt their own company.

Trimax shareholders are seeking damages of $150 million and another $150 million in punitive damages. The lawsuit was first filed on December 2 but later moved on to the federal court.

BC-based Tilray has a current market cap of $1.8 billion, Warrior Trading News reports, although its share prices have been steadily dropping throughout the year and the company has lost about 80 percent of its market cap since the beginning of the year.

This is not the first case of alleged corporate wrongdoing by one of Canada’s licensed cannabis producers — one year ago, Canadian LP Aphria faced accusations by a known short seller of playing a shell game with shareholders, which led to a crash in stock prices and, eventually, an attempted hostile takeover by a U.S. firm. Aphria’s CEO and co-founder stepped down about a month later.

End

Chicago City Council Committee Approves 6-Month Cannabis Moratorium

12/19/2019

The Chicago City Council Committee on Contracting Equality and Oversight has approved a measure that would force cannabis sales in the city to be delayed until July 1 because of the lack of minority-owned dispensaries, NBC Chicago reports. The measure would need to be approved by the full city council but, even if it passed, could be vetoed by Mayor Lori Lightfoot.

The Chicago Aldermanic Black Caucus called the narrow 10-9 vote “a step in the right direction” and indicated that they are having “ongoing discussions” with the city and state about equity in the industry.

Pam Althoff, executive director of the Cannabis Business Association of Illinois, told CBS Local that she was surprised by the vote.

“This was not anticipated,” she said in the report.

“We have the city of Chicago making an attempt to stop an industry; a new program; a new opportunity, before it has opportunity to move forward, and to be tested, and to be rolled out.” – Althoff, to CBS Local

In a statement, Lightfoot acknowledged that “unjust and outdated cannabis laws have adversely and disproportionately affected Chicago’s Black and Brown neighborhoods” and that those citizens “need to be among the first to benefit” from cannabis legalization; however, she argued that delaying sales would “have a multitude of unintended consequences including fueling illegal sales.” She said that starting the industry in the summer, when the city needs its public safety resources most, would strip money “from the social equity funds intended to benefit Black and Brown entrepreneurs.”

“I have repeatedly asked the members of the Black Caucus to devise a strategy that addresses equity. Instead, we have been primarily met with a litany of complaints, but no tangible solutions,” Lightfoot said in the statement. “Crossing our arms and walking away is not a tactic, not a strategy and is not only unacceptable but irresponsible.”

Lightfoot’s floor leader told CBS Local that the mayor’s camp believes the Black Caucus has the votes to pass the delay, but Lightfoot has some procedural moves she could utilize to delay the vote. A six-month delay could cost the city $5 million

End

Florida Legalization Group Suspends 2020 Campaign

12/19/2019

Sensible Florida, one of the two groups in the state seeking to put adult-use cannabis legalization on the 2020 ballots, has suspended its campaign, Capitol News Service reports. The suspension comes despite the group gathering enough signatures to have their petition language reviewed by the state Supreme Court but the organization didn’t raise enough funds to keep their campaign alive.

Taylor Biehl. with the Medical Marijuana Business Association of Florida, told CNS that the group had only raised $200,000 and “had some reservations coalescing the industry support.” She added that the campaign’s initiative – which would have completely overhauled the state’s current medical cannabis regime in addition to regulating cannabis like alcohol – was “kind of doomed from the onset trying to do too much.”

The shuttering of the campaign means the citizen initiative by Make it Legal Florida will be the only option for Florida voters if it makes it to the ballot. That initiative is backed by two medical cannabis companies and has a war chest of $3.7 million. Their initiative is simpler than their now-defunct counterparts’ and would allow adults 21 or older to “possess, use, purchase, display, and transport up to 2.5 ounces of marijuana and marijuana accessories for personal use for any reason.” Make it Legal Florida submitted enough signatures last month to the Division of Elections to trigger the state Supreme Court review of the proposed ballot language. The group needs a total of 766,200 signatures by February to put the question on the General Election ballots next year.

“They’ve focused on spending money on mail to garner the signatures. It’s costly, but it’s effective and when you’re working on a truncated timeline it certainly very well may prove to be a genius campaign move.” – Biehl, in an interview with CNS

In 2016, Florida voters overwhelmingly approved the legalization of medical cannabis in the state – 71 percent to 29 percent – but the law was subsequently amended in the Legislature and is barely recognizable to what voters approved on Election Day.

It’s unclear whether Sensible Florida will back the efforts of their former competition but the lack of a competing proposal could favor Make it Legal Florida as voters won’t have to choose between two different proposals that, effectively, do the same thing.

End

Get the daily briefing