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USDA Releases Hemp Industry Draft Rules

10/29/2019

Federal officials at the United States Department of Agriculture have released a set of draft rules for the industrial hemp industry. The regulations will dictate hemp industry growing practices, THC limitations and testing standards, and outline the appropriate methods for disposing of crops that don’t meet federal standards.

Once the rules are finalized — note that, for now, they remain subject to change — the USDA will be able to begin the review and approval process for individual states’ hemp programs.

The proposal is currently available for public comment and is expected to officially appear in the Federal Register later this week; the rules will take effect initially for two years. The White House issued its approval of the proposed regulations earlier this week before the draft rules were made public.

“The USDA has established a regulatory framework that will serve as an infrastructure for the U.S. hemp economy,” said Shawn Hauser of the Colorado hemp and cannabinoids law firm Vicente Sederberg.

“While the hemp industry has seen incredible growth since the passage of the 2014 farm bill, it has been stifled by the lack of federal regulation. The establishment of federal regulations governing hemp as an agricultural crop is a watershed moment for the entire cannabis industry.” — Hauser, partner and chair at Vicente Sederberg, in a press release

Industrial hemp was federally legalized at the close of 2018 following the successful passage and signing of the 2018 Farm Bill, meaning the crop has been legal for 10 months so far without rules or regulations addressing the industry at the federal level. The legalization effort was a bipartisan push spearheaded by Senate Majority Leader Mitch McConnell (R-Kentucky).

Since then, hemp farmers and hemp-based businesses like CBD product manufacturers have been operating more or less in the dark about the industry’s future. The USDA noted that CBD companies are still awaiting draft rules from the Federal Drug Administration (FDA) as well.

“If FDA does not provide clarity about their plans for future regulation of CBD, there will continue to be uncertainty and downward pressure on the CBD portion of the hemp market,” the agency’s rules proposal warns.

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Canadian Company Adopts Recyclable Tin Cannabis Packaging

10/29/2019

Canadian cannabis company Freedom Cannabis is launching its product line in a recyclable steel container called Nitrotin, the Winnipeg Free Press reports. The packaging will buck the trend of hard-to-recycle plastic containers used by most of the country’s licensed producers.

Troy Dezwart, executive director and co-founder of Freedom, said the packaging has other advantages, including a sealing process that replaces oxygen in the container with liquid nitrogen to help the product remain fresh until its unsealed. Once the seal is broken, the can is closed with a plastic cover that doubles as a child-proofing mechanism – child-proofing is required under the nation’s legalization laws.

Dezwart said the industry has “been hearing nothing but negative energy” about the packaging of cannabis products which, he said, have “a lot of waste.” He said the tins will help the company’s products stand out since federal law limits cannabis branding and packaging.

“It seemed to make a lot of sense. Although we pay a little bit more for this product than you would for some of the conventional (packages), based on what we’ve heard from consumers, and their pushback on some of the waste with packaging, it’s kind of a trifecta for us.” – Dezwart, to the Free Press

In Canada, the tins will be able to go directly into recycling containers instead of being taken to a facility that can handle complex plastics or multiple materials that require extra processing.

Licensed producer 48North Cannabis already uses post-consumer recycled paper packaging for its pre-rolls and Tychon Packaging supplies its 100 percent PET plastic containers to 25 different cannabis producers throughout the state.

Packaging is just one energy-input concern in the cannabis space; in 2016 a report found indoor cannabis grows to be as energy-intensive as data centers. The report suggests that indoor grows use 2,000 watts per square meters, which, EQ Research says, is “50 to 200 times more energy-intense than a typical office building.” Many medical cannabis programs in the U.S. require indoor cultivation.

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Buffett-Linked Venture Capital Fund Invests in Flowhub

10/29/2019

Cannabis tech company Flowhub has landed a $23 million investment in a Series A funding round led by Evolv Ventures – a venture fund backed by Kraft Heinz – and e.ventures. Kraft Heinz is partly owned by Warren Buffett’s Berkshire Hathaway and the investment marks the first time a Buffett-linked firm has invested in the cannabis space.

The funding round includes additional financing by Poseidon, 9Yards Capital, former National Basketball Association Commissioner David Stern and Iqram Magdon-Ismail, the co-founder and former CEO of Venmo.

Emily Paxhia, managing director for Poseidon, said that the cannabis industry was not one “that you just jump right into,” noting in a press release that the “compliance and regulation aspects” make the industry “unique.”

“With this investment, we will continue to automate the cannabis supply chain, retail and reporting processes and bring to market technology solutions that are not only shaping the cannabis retail business, but also driving forward the future of legalization and de-stigmatization.” – Kyle Sherman, Flowhub founder and CEO, in a statement

Last year, Coca-Cola – of which Berkshire Hathaway owns a 10 percent stake – was reportedly in talks to partner with Canadian cannabis company Aurora on a CBD-infused product line. In May, Buffett and his business partner Munger told Fox Business it would be “a mistake” for the company to get into the cannabis business, adding that it “would be detrimental” for Coke’s “wholesome image.”

The Series A funding round by Flowhub brings the cannabis tech company’s total to $27 million.

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Massachusetts Cannabis Company Settles Lumber Firm’s Trademark Dispute

10/29/2019

Massachusetts cannabis company New England Treatment Access and lumber firm Boise Cascade Company have settled a federal lawsuit over the cannabis company’s use of a logo similar to Boise Cascade’s, according to a Masslive report. The lawsuit was filed in April in U.S. District Court in Boston.

Attorneys for Boise Cascade argued that the cannabis company’s tree-in-a-circle logo was “confusingly similar” to their logo and used a “nearly identical” green color which would likely “cause confusion, to cause mistake, and/or to deceive customers and potential customers” into believing there was a link between the dispensary chain and the lumber company, Masslive reported in April. NETA denied any wrongdoing.

“As alleged in our complaint, because of the similarity between NETA’s tree-in-a-circle logo and Boise Cascade’s decades-old Tree-in-a-Circle trademarks, Boise Cascade is concerned that NETA’s logo will dilute, weaken, or tarnish the reputation and distinctiveness of Boise Cascade’s Tree-in-a-Circle trademarks.” – David Viens, Boise Cascade attorney, to Masslive

The parties notified the court in July that they were working on a settlement and last month filed a joint motion in agreeing to dismiss the case, with no costs awarded on either side. The terms of the settlement were not disclosed. The NETA website now displays a blue logo that is not dissimilar from the one challenged in court.

There’s been a host of trademark-related lawsuits in the cannabis space, including a fight over “Woodstock,” Citibank asking California-based cannabis company Citidank to stop using the moniker, hot sauce company Tapatio defending its sombrero-adorned “Charro” mark, adhesive company Gorilla Glue forcing the famous strains that shared a namesake to change their branding name to GG4 and GG5, and Snoop Dogg facing off against the National Hockey League’s Toronto Maple Leafs.

In 2018, MedMen filed a federal copyright on the word “cannabis” appearing on t-shirts, while a Washington dispensary operator was denied federal trademark protection in 2016 for “Herbal Access” because the trademark would be used for federally-prohibited cannabis sales.

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Michigan Starts Accepting Cannabis Industry Applications on Friday

10/28/2019

Editor’s note: A previous version of this article incorrectly indicated that the application period will begin on December 1 instead of November 1.

Michigan cannabis industry regulators are set to begin accepting applications for retail cannabis operators on Friday, November 1, according to a Michigan Radio report. However, Robin Schneider, executive director of the Michigan Cannabis Industry Association, told the National Public Radio affiliate that she isn’t expecting many applications to be submitted on the first.

“I just don’t believe that we’re going to see a green rush of businesses running out to get those rec licenses on the first day because of the lack of supply.” – Schneider, to Michigan Radio

State regulators are expecting to grant the first licenses for recreational cannabis businesses in a matter of weeks but retail sales are likely still a long way off because the plants for the market still need to be grown and tested. The Department of Licensing and Regulatory Affairs released emergency rules for the industry in July, which allow for delivery and social use.

Under the rules, 100-plant “entry-level” growers will have to pay $4,000, while a 500-plant medical cannabis cultivation license will run $10,000. Retail dispensary licenses will range from $20,000 to $30,000, while medical dispensary licenses will cost $66,000.

The November 1 date coincides with the cutoff date for municipalities to ban cannabusinesses. According to a Grand Rapids Press report, as of Aug. 31, 308 of the 792 cities and townships that approved the ballot initiative to legalize cannabis have since passed bans on operations. In all, at least 771 municipalities have passed ordinances banning cultivation operations and dispensaries, according to Marijuana Regulatory Agency figures outlined by the Detroit Metro Times. The law was approved by 55.9 percent of Michigan voters in 2018.

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Maine Adopts Massachusetts’ Cannabis Warning Labels

10/28/2019

Cannabis regulators in Maine have adopted the warning symbols for cannabis products from Massachusetts, the State House News Service reports. The adoption could be a preview of how New England states unify some cannabis regulations in lieu of federal legalization. Maine’s rules require all products to have cannabis warning labels that read “contains THC” and “Not Safe for Kids.”

Erik Gundersen, director of the Maine Office of Marijuana Policy, said using the “same universal symbol will ensure that customers can clearly recognize products that contain THC whether in Massachusetts or Maine.”

Three of the six New England states – Maine, Massachusetts, and Vermont – have legalized cannabis for adult use, although Vermont has not yet legalized sales or a regulated industry. Legalization legislation has been introduced in New Hampshire, Connecticut, and Rhode Island but has not yet been voted on by lawmakers.

Maine officials said regulators “identified the CCC’s symbol as a potential opportunity for collaboration and were pleased with how warmly the suggestion of utilizing the same symbol was received by their counterparts in Massachusetts.”

Earlier this month, governors from New York, Connecticut, New Jersey, and Pennsylvania met to discuss regional cannabis legalization policy. In a statement on the summit, Connecticut Gov. Ned Lamont (D) said that eastern states “not only share borders” but “economic interests” and that “when states work together collaboratively, carefully and thoughtfully [they] can create better policies.”

According to the State House News report, Maine officials expect to begin accepting cannabusiness licenses by the end of the year.

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UN Warns Australia: ACT’s Cannabis Reforms Violate Treaties

10/28/2019

The United Nations International Narcotics Control Board has sent a letter to the Australian federal government warning that cannabis reforms in the Capital Territory breaches at least three international conventions on a drugs control treaty signed by the nation, according to a report from the Australian.

“The board wishes to recall that cultivation, production and distribution of cannabis for non-medical purposes is inconsistent with the provisions of the 1961 convention as amended, in particular article 4(c), which requires state parties to limit the use of narcotic drugs exclusively to medical and scientific purposes.” – UN INCB, in a letter to the Australian government

The letter was sent to Australia’s UN mission in Vienna and forwarded to the Department of Foreign Affairs and Trade and the Department of Health.

“The board wishes to reiterate that the legalization and regulation of cannabis for nonmedical use, including in small quantities, would be inconsistent with Australia’s international legal obligations,” the letter states.

The agency issued a similar warning in their 2017 annual report, calling out Uruguay, the Netherlands, Jamaica, Canada and U.S. states for implementing cannabis legalization reforms. The body could bring offenders in front of an international court but, to date, has not taken any action.

Australian Health Minister Greg Hunt has indicated the federal government has “no plans” to fight against the ACT legalization plan – which takes effect Jan. 31, 2020. Attorney General Christian Porter said earlier this month that the law has “no effect” because of Commonwealth statutes.

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College Students Sue Schools for Denying Medical Cannabis Use

10/25/2019

At least three college students have launched legal challenges against colleges that have taken action against them – including expulsion – for using medical cannabis, according to an Al Jazeera report. The lawsuits come from students studying nursing and other medical specialties who, under school policies, must submit to drug tests.

Sheida Assar, who uses medical cannabis to treat chronic pain from polycystic ovary syndrome, was expelled from Phoenix Arizona’s GateWay Community College after failing a drug test for cannabis. She told Al Jazeera that school officials told her she would not have any problems if she showed them her state-issued medical cannabis card.

“They yanked me out of class in the middle of the school day. They escorted me to the administration like I was a … criminal. It’s discrimination, and it also violates my rights under the Arizona medical marijuana law.” – Assar, to Al Jazeera

Assar is seeking $2,000 she spent on tuition and other educational expenses and additional money for damages. GateWay spokeswoman, Christine Lambrakis, said the college has a ban on cannabis use but that the school is reviewing its policies; for now, the school has no plans to change the rules despite the 2018 Arizona Supreme Court Ruling.

Connecticut nursing student Kathryn Magner sued Sacred Heart University after officials barred her from attending required clinical medical rounds after she tested positive for cannabis. Magner has a medical cannabis card from her home state of Massachusetts for undisclosed conditions. She has since settled the suit under undisclosed terms; however, before the settlement, she stopped using cannabis, passed a drug test, and obtained approval from the Office of Student Accessibility to use cannabis, but the nursing school officials would not let her back into the program. Connecticut law prohibits public and private colleges from discriminating against students enrolled in medical cannabis programs.

In a statement, Sacred Heart said it treats medical cannabis like other disability-related requests and “seeks to provide reasonable accommodation under the law.”

Michael Thad Allen, a lawyer for Magner, said issued like these “will become more common if employers and schools don’t abide by the law.”

Kaitlin McKeon was expelled from Nova Southeastern University’s nursing program last year after failing a drug test for cannabis; officials at the Florida school said she violated the institution’s drug policy even though she holds a medical cannabis card issued in the state.

Michael Minardi, her attorney, called it “sad” that the college took action against his client “because she chose a medication that’s legal in Florida but not one that they recognize.”

The rulings could set legal precedents which could ultimately prevent schools from taking punitive actions against medical cannabis cardholders.

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Sanders Describes Plan for Legalizing Within 100 Days of Election

10/25/2019

In a campaign email yesterday, Democratic presidential candidate Bernie Sanders outlined his plan to federally legalize cannabis through an executive order in his first 100 days in office if elected. The plan includes expungement of cannabis-related convictions, social equity programs from funds raised from cannabis-derived revenues and would “ensure legalized marijuana does not turn into big tobacco.”

“Why is it that millions of dollars are being made by mostly white, mostly male, and already rich ‘cannabiz’ entrepreneurs in states where marijuana is legal, while the people and communities that were ravaged by the War on Drugs have been shut out of the industry, denied credit, and many are still incarcerated? That is going to change when Bernie is president.” – Nov. 24 Bernie Sanders campaign email

The campaign says Sanders would nominate an attorney general, Health and Human Services secretary, and Drug Enforcement Administration head “who will all work to aggressively end the drug war and legalize marijuana.”

Sanders would, according to the email, base his criminal reform policies on the California model, which directs authorities to review current and past cannabis-related convictions and prosecutors would have one year to “appeal or object, after which authorities will automatically expunge and vacate past marijuana convictions for all those eligible.” The policy would include federal funding for states and cities to partner with organizations that could streamline the process, much like California’s partnership with Code for America. That partnership led to expunging 9,362 felony and misdemeanor cannabis convictions in the state dating back to 1975.Lweg

Taxes from legal cannabis sales would be used, in part, to create a $20 billion grant program within the Minority Business Development Agency “to provide grants to entrepreneurs of color who continue to face discrimination in access to capital,” the campaign says. Another $10 billion grant would be created for cannabusinesses that are at least 51 percent owned or controlled by individuals in areas disproportionately impacted by the War on Drugs or those who have been arrested for or convicted of cannabis offenses. A $10 billion program would also be set up in the U.S. Department of Agriculture to start cannabis farms is urban and rural areas most impacted by the drug war. The plan also includes free job training for formerly incarcerated individuals seeking to enter the space.

In order to prevent cannabis from becoming big tobacco, the Sanders plan would incentivize cannabis businesses to be set up like nonprofits, prohibit advertising and labeling aimed at young people, ban companies that have created cancer-causing products or have used deceptive marketing practices, and ban tobacco and cigarette companies from the industry entirely.

Sanders first floated the plan to legalize cannabis via executive order on the Joe Rogan Experience podcast in August.

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Canadian Cannabis Producer Hexo Announces Layoffs, Facility Closures

10/25/2019

Canadian cannabis company Hexo Corp. has laid off about 200 workers including some executive positions in what the firm called “rightsizing.” In a press release, Hexo said the cuts were necessary as it adjusts “to a changing market and regulatory environment with a view towards profitability and long-term stability.”

Sebastien St-Louis, CEO and co-founder, called the layoffs his “hardest day” with the firm.

“While it is extremely difficult to say goodbye to trusted colleagues, I am confident that we have made sound decisions to ensure the long-term viability of Hexo Corp. The actions taken this week are about rightsizing the organization to the revenue we expect to achieve in 2020.” – St-Louis, in a statement

Chief Manufacturing Officer Arno Groll and Chief Marketing Officer Nick Davies were included in the round of layoffs.

According to a Global News report, the Gatineau, Quebec-based company had 822 employees as of April 30. The plan includes the shuttering of facilities it operates near Niagara Falls, Ontario, Marketwatch reports. Those facilities were operated by Newstrike Brands, which was acquired by Hexo in a deal closed in May.

According to Marketwatch, the announcement came a day after the Canadian cannabis company said it was raising $53.3 million in convertible debentures through a private placement and that it is postponing its earnings call until Tuesday. Earlier this month the company warned investors that it was expecting revenues for the July quarter to reach C$14.5 million instead of the anticipated C$24.8 million; they are expected to report sales of C$15 million, up from C$1.4 million during the same period a year ago.

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Gallup: American Support for Legalization Remains at Two-Thirds

10/24/2019

Americans’ support for legalizing cannabis remains at 66 percent, according to a Gallup poll. The polling firm found the same level of support last year – it’s the highest support for the broad reforms since Gallup began asking the question in 1969 when just 12 percent of respondents supported legalization.

The poll found the majority of members all political parties support the reforms, although there is a wide gap between Democrats (76 percent) and Republicans (51 percent). Sixty-eight percent of Independents said they supported nationwide legalization. However, 82 percent of those who identified as liberal backed legalization compared to a minority (48 percent) of self-described conservatives.

Support was strongest among adults under age 30 (81 percent) and Millennials (80 percent) followed by Generation X (63 percent) and Baby Boomers (61 percent). Individuals born in 1945 or before were largely no in favor, with just 40 percent support, while 49 percent of senior citizens said they supported legalization.

The majority of all ethnic group members polled supported the reforms, including 74 percent of African-Americans, 66 percent of whites, and 57 percent of Hispanics.

Among individuals that attend religious services on a weekly basis, just 42 percent said they favored legalization, compared to 77 percent of those who never attend religious services, and 63 percent of those who attend occasionally.

In 1977, Gallup found 28 percent backed legalization but support dropped to 23 percent in 1986 before rising to 25 percent in 1995. The pollsters then found fairly consistent support into the 2000s. In 2001, 31 percent said they backed the reforms, and support jumped to 36 percent by 2006. In 2010, 44 percent of respondents indicated they supported legalizing cannabis, and the needle pushed to 50 percent in 2012, before dropped to about 45 percent the following year, rising again to 58 percent in 2013, dropping again to about 45 percent two years later before spiking to 58 percent in 2016.

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Survey Shows Consumers Have CBD Product Safety Concerns

10/24/2019

A survey by Colorado CBD company Joy Organics conducted by YouGov found 18 percent of respondents were “very concerned” with CBD product safety, with 30 percent saying they were “somewhat concerned” and 26 percent “not very concerned;” 26 percent of those polled said they were “not at all concerned.”

However, a vast majority of those polled – 81 percent – said they didn’t currently use CBD products. Just 11 percent said they currently use CBD tinctures, while 8 percent said they vaped CBD, and 4 percent used other, unnamed, products.

The primary concern among those polled (31 percent) was about contaminants such as pesticides and heavy metals in the products, while 29 percent were worried about harmful added ingredients, such as vape flavors. Another 23 percent said they were worried about the accidental consumption of synthetic CBD, and 14 percent feared CBD could be damaging to the body.

Darcie Moran, director of quality assurance at Joy Organics, said the poll shows that “many consumers simply don’t know what they’re putting in their body or which brands to trust.” She warned that consumers can best identify high quality brands by checking ingredient lists and looking out for products that make curative claims, which are not compliant with Food and Drug Administration rules.

“The bottom line is this: if a company does not test through third-party laboratories and publish the results from each batch, you cannot know what their products contain. Hemp is a known bioaccumulator, meaning it has a special ability to absorb contaminants in the soil, contaminants that may later end up in hemp-derived products.” – Moran, in a statement

The company suggests that many consumers who vape CBD products might be taking a step back from use with the recent spate of pulmonary illnesses believed to be related to vaping. Most of those illnesses are believed to be linked to counterfeit vape products in illicit markets.

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South Dakota Grand Jury Indicts Hemp Transporter

10/23/2019

A grand jury in Jackson County, South Dakota has indicted a Colorado man who was arrested in the state while delivering hemp to Minnesota, the Denver Post reports. Robert Herzberg was arrested July 16 following a stop for speeding after a state trooper found “two large white sacks that contained a green leafy substance that looked and smelled like raw marijuana,” according to the report.

Herzberg was delivering 300 pounds of flower and samples field-tested positive for THC. Six other plant samples tested by the state laboratory contained more THC than allowed under federal law with maximum THC levels ranging from .31 to .51 percent and Delta 9-THC levels from .18 to .25 percent.

The Colorado man who hired Herzberg to make the delivery to a CBD processing company in Minnesota and the Minnesota Hemp Association both maintain that the products were legal under federal law. Herzberg is charged with intent to distribute and possessing more than 10 pounds of marijuana, which could lead to 15 years in prison if convicted. He is also charged with cocaine and marijuana ingestion charges which carry five and one-year sentences, respectively, Rapid City Journal reports.

Matthew Kinney, Herzberg’s defense attorney, said he plans to call on experts who can explain the reliability of THC testing, whether the amount of THC in a plant can increase over time, and would force prosecutors to prove that his client knew the bags contained cannabis.

“You can’t get high from this stuff. It would be unlike any other case that is usually before the courts for trying to distribute street marijuana.” – Kinney, to the Journal

In May the U.S. Department of Agriculture issued a memo that explicitly allows hemp shipments to cross state lines even in states that prohibit hemp cultivation. Last session, Republican Gov. Kristi Noem vetoed a bill to legalize hemp and followed it up with an op-ed in the Argus Leader arguing that the reforms would legalize cannabis “by default.”

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Gibraltar Legalizes Medical Cannabis

10/23/2019

The sovereign British state of Gibraltar has legalized non-smokable medical cannabis use for muscle spasticity and multiple sclerosis, severe epilepsy, “life-altering” pain, and vomiting and nausea associated with chemotherapy, according to a Vox Gibraltar report. The products will be supplied through the Gibraltar Health Authority, though it’s unclear whether they will be cultivated locally or imported.

Acting Medical Director Dr. Krishna Rawal called the reforms “a milestone” for healthcare in Gibraltar which required “extensive research and consultation.” Physicians who want to authorize medical marijuana use must undergo GHA training.

“I am extremely keen to always provide patients with as many options as possible for their medical treatment, recovery, and their return to good health and wellbeing. In my considered view, cannabis oil certainly has its place in the modern medical care of some patients. Over time, I am certain that the increased use of cannabis for medical purposes will generate overwhelming evidence in support of its use.” – Rawal, to Vox

Medical marijuana distribution will be limited to just one GHA pharmacy at St. Bernard’s Hospital. According to the report, the government is open to adding qualifying conditions, adding that the current list “have the weight of evidence to support the success of cannabis as part of an overall treatment regime.”

The United Kingdom legalized medical cannabis on a very limited basis in 2018.

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Snoop Dogg Partners with Seedo for AI Growbox Tech

10/23/2019

Rapper Snoop Dogg is partnering with Seedo, an Israeli company that manufactures a small refrigerator-like machine that cultivates plants with the help of artificial intelligence. Snoop will serve as a brand ambassador for the device, which he says allows for growing “in unused urban spaces.”

The box regulates temperature, light, carbon dioxide, and minerals and is monitored by an app. According to a press release, Snoop will contribute to a social responsibility program that will share the company’s growing practices and provide donated Seedo products for local communities, neighborhood organizations, and Snoop’s circle influencers – the initiative will start in Snoop’s hometown of Long Beach, California.

Zohar Levy, CEO of Seedo, said the company is “honored” to partner with the rapper – who also launched his own cannabis brand “Leafs by Snoop” in 2015.

“Snoop’s vast global following, industry influence and network reach will provide us an invaluable resource for Seedo as we continue to grow. The synergy between Seedo’s products and Snoop’s platforms is truly natural.” – Levy, in a statement

Snoop, whose real name is Calvin Brodus, Jr. also co-founded cannabis media site Merry Jane. In 2015, he planned to raise $25 million to fund cannabis industry startups and later founded Casa Verde Capital with Evan Eneman. Casa Verde has been linked to cannabis products from packaging, to seed-to-sale technology.

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Mexico Legalization Plan Unveiled, Vote Expected Soon

10/22/2019

Mexico is poised to become the third country to fully legalize adult-use cannabis, with lawmakers expected to vote on the bill as early as this week, according to a Marijuana Moment report. The bill’s language was released to the public last week.

Lawmakers are pushing to pass the bill in time to meet a deadline set by the Supreme Court, who last year declared that cannabis prohibition is unconstitutional and gave lawmakers less than a year to pass rules and regulations for the country’s impending cannabis marketplace.

The proposed market appears to be aimed at social equity and the limiting of foreign investment — here are the major takeaways from Mexico’s cannabis legalization proposal:

Adults 18+ would have access to the legal marketplace, able to possess and purchase the plant
The bill will allow up to four homegrown plants per adult
No social-use/public consumption (private use only)
All plants or seeds must be registered, even for home grows
The bill calls for a new agency, the “Cannabis Institute,” to handle licensing and regulations
Licensing priority would be given to low-income individuals, smaller farmers, and indigenous communities
No vertical integration allowed for cannabis corporations
Commercial cannabis plants must be grown pesticide-free
Strict packaging rules would leave little room for brand expression
Cannabis advertisements would be banned
Edibles/beverages would only be available for medical cannabis patients

Some amendments are likely for the legalization bill’s final form, but lawmakers are expected to pass the legislation.

President Andrés Manuel López Obrador, whose successful election campaign last year was based in part on a platform of drug decriminalization, supports the bill. Mexico legalized medical cannabis in 2015.

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Virginia Judge Tosses Cannabis Charges for CBD Flower

10/22/2019

A Hanover County, Virginia judge has dismissed a cannabis possession charge after a state laboratory supervisor said he couldn’t tell the difference between legal and illegal cannabis, according to a WWBT report. Robert Mason was charged during a traffic stop when a Hanover County Sheriff’s deputy said he smelled cannabis and Mason – who was the passenger – gave the CBD flower, which he purchased at a gas station, to the officer.

When the officer field tested the flower, it came back positive, and Mason was ticketed. According to the report, a document provided by the store showed a THC level of .28 percent.

“There’s nothing illegal. … His specific words was (sic), ‘it looks like a duck, it sounds like a duck, it’s a duck.’ – Mason, to WWBT

Jay Breneman, the defense attorney on Mason’s case, told WWBT that he has “serious questions” about how states can move forward “on just about any” cannabis case if the state labs can’t determine legal cannabis-derived products made legal under the 2018 Farm Bill, such as CBD flower, from those still on the federal Drug Schedule.

Mason had initially been convicted in General District Court but Breneman appealed the case to the Hanover County Circuit Court. During the trial, Judge Overton Harris asked a supervisor from the state’s Richmond lab whether he could tell if the product “was purchased at the service station down the road,” the report says.

“No, your Honor, I could not,” the supervisor said.

“[The judge] looked at the prosecution and myself, and back and said, ‘not guilty,’” Breneman said, which WWBT confirmed with court transcripts.

Following the federal removal of hemp from the Controlled Substances Act, law enforcement officials throughout the U.S. have said they would stop enforcing or prosecuting low-level cannabis crimes because of the lack of testing to differentiate industrial hemp and THC-rich cannabis products.

Earlier this month, Virginia Attorney General Mark Herring tweeted support for adult-use cannabis legalization in the state. Gov. Ralph Northam (D) included cannabis law reforms in his campaign platform.

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New Mexico Legalization Task Force Issues Final Report

10/22/2019

New Mexico’s governor-appointed Marijuana Legalization Work Group has released a 16-page report with its recommendations for cannabis legalization for adults, including expungement for low-level convictions.

The report anticipates $63 million in new state and local taxes following year one, and nearly $94 million by year five. The report estimates first-year sales would reach $318 million and increase to $620 million by year five in a market with 468,000 consumers. The report calls for a 17 percent average tax rate.

“Combined, a joint medical-adult use program is anticipated to include more than 13,000 jobs at all skill and income levels and mature to generate at least $850,000,000 in annual sales which would generate almost $100,000,000 in new revenue for state and local governments annually.” – Oct. 16 New Mexico Marijuana Legalization Work Group report

The recommendations would not allow localities to “opt-out” of the industry in an effort to prohibit illegal sales but would allow local control over funds derived from the space; home grows would not be permitted under the recommended rules.

The recommendations do include social equity provisions such as grant programs, in addition to low licensing fees, and free training programs.

The group – comprised of attorneys, law enforcement, lawmakers, industry members, physicians, citizens, and environment and public health officials – suggested that industry operating fees “should not be set by statute” rather “language limiting licensing fees to the cost of regulation and/or with ‘no more than $500/mo. unless necessary to meet the cost of regulation’).”

The group also advocated for enhancing the state’s medical cannabis program, including a $3.9 million low-income medical cannabis patient subsidy program, which would grow to $7 million by year five.

Under the recommendations, the state excise tax on sales would be set at 5 percent, with a 5.125 percent gross receipts tax on businesses, a 5 percent local excise tax, and a 2 percent local gross receipts tax.

Gov. Michelle Lujan Grisham (D) created the task force in June after the legislature failed to pass cannabis legalization legislation during the session.

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Medical Cannabis Program Stalls In Georgia

10/22/2019

Georgia’s governor and legislative leaders have yet to appoint members of a commission to oversee the expansion of the state’s medical cannabis program, which has stalled in the meantime, the Atlanta Journal-Constitution reports. The expansion includes allowing cannabis oils for the program to be produced in the state for the first time.

The legislation was passed in April but requires a seven-member commission to pick the businesses that will be allowed to grow and process the cannabis for the program. Those members are supposed to be picked by Gov. Brian Kemp (R), Lt. Gov. Geoff Duncan (R), and House Speaker David Ralston (R). The commission is also tasked with developing industry rules. According to the report, the state has had more than 50 applications from prospective companies.

Blaine Cloud, whose daughter suffers from a severe form of epilepsy that could be treated with medical cannabis, called the setback “extremely frustrating” since the Legislature finally passed the reforms that would allow easier patient access.

“Registered patients and many others continue to suffer every day – and will continue to suffer since it will take time to get companies licensed once the commission is finally established.” – Cloud, to the AJC

Under the current rules, medical cannabis patients can procure low-THC products from out-of-state and possess them in-state so long as they are registered. Two years ago, some of the state’s patients were obtaining the products from state Rep. Allen Peake, the bill’s sponsor who obtained a medical cannabis card so he could possess the oils and give them to patients.

Aides to Kemp, Duncan, and Ralston have not indicated why there are not yet members yet for the commission.

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Oklahoma Still Lacks Cannabis Testing Labs

10/21/2019

The Oklahoma Medical Marijuana Authority has still not approved any cannabis testing labs, the Tulsa World reports. The state’s medical cannabis law requires products to have proof of testing before they can be sold.

OMMA laboratory program oversight manager Lee Rhoades said that despite the lack of labs approved by OMMA, suppliers still need to have their products tested for pesticides, heavy metals, solvents, bacteria, yeast, mold, potency, and terpenoids.

“These are being used for medicinal purposes. It’s called medical marijuana. And by implication, there’s going to be people, for instance cancer patients, who may be susceptible more than the general public to feel effects from contaminants. We’re calling it medical marijuana and it’s incumbent upon us to make sure, as in anything else medical, to do no harm.” – Rhoades, to the World

Austin Miller, who owns Cloudi Mornings LLC, noted that the state law requires testing “by strain” through an OMMA-approved lab and under the current system — with just a handful of labs in the state but none OMMA-approved — cultivators are getting different results.

“You can take the same sample to as many different laboratories as you want and you’ll get a different result from every single one,” he said, adding that tests can cost up to $375 per sample.

“I would like the state of Oklahoma’s left hand to know what the right hand is doing. It is blatantly obvious that they do not,” Miller said.

Kyle Felling, who owns F.A.S.T. Laboratories and is licensed through the Oklahoma Bureau of Narcotics and Dangerous Drugs, said the current situation puts labs “in a little bit of a situation.”

“… Is the testing legal or not if you haven’t been licensed by OMMA yet?” he said.

The OMMA is expecting to open up cannabis testing labs applications on November 1. As of October 7, the agency has licensed 4,063 growers, 1,651 dispensaries and 1,168 processors.

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Blockchain Emerging as New Traceability Option for Cannabis

10/21/2019

Already seeing success as a transparent traceability solution in food distribution and the pharmaceutical industry, blockchain is emerging as a technology suited perfectly for the large amounts of data needed to safely track cannabis plants from seed to sale. Uruguay’s æternity, a new face in the emerging blockchain movement, has announced it is partnering with Uruguay Can to implement a cannabis tracking system based on the Internet of Things (IOT) and blockchain technology.

According to an æternity press release, implementation is beginning immediately and set to be completed by January 2020 with full completion set for mid-2021.

“The ability to trace the source and the way cannabis is produced is beneficial for both the cannabis and pharmaceutical industry as well as its consumers and end-users, who should feel more secure about the product that they are consuming.” — Pablo Coirolo, æternity CEO, in a press release

How does blockchain work?

Blockchain technology was introduced to the world in 2009 by an elusive group or person named Satoshi Nakamoto in a “white paper” called “Bitcoin: A Peer-to-Peer Electronic Cash System.” Bitcoin and other “cryptocurrencies” that have emerged over the ten years since then have created an entirely new way to store and share data.

“Blocks” are made up of encrypted data points, or transactions, created by individual users. When these “blocks” are grouped together, it is called a “blockchain.” Each transaction that makes up the blockchain is unique and is recorded on a tamper-proof viewable digital ledger, making blockchain the ultimate in data security and transparency.

Cannabis and blockchains

The focus on security and transparency makes “blockchain” technology a great fit for the cannabis industry, said Kevin McKernan, founder and CSO of Medicinal Genomics.

“We see closed garden hack-prone seed to sale tracking systems being replaced by transparent blockchain ledgers that are not a monopoly contract with a given state,” McKernan wrote in an email.

“We need to educate regulators that handing out sole-source contracts to seed to sale tracking companies is a very bad idea. This invokes very bad behavior, creates honey pots for hackers and eliminates competition and innovation. Genetic data could be included in these blockchains and seed to sale systems could be globally accessed as opposed to closed state by state cartelized databases.”

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Australian AG: ACT Cannabis Reforms Have ‘No Effect’

10/21/2019

Australian Attorney-General Christian Porter says that cannabis possession in the Capital Territory “is still against the law” despite local lawmakers passing a bill last month allowing residents to grow up to two plants and possess up to 50 grams, Reuters reports.

“The ACT laws removed the criminal component at a territory level but didn’t establish anything that is a positive right to possess, which means that there’s no defense to the Commonwealth law that criminalizes amounts under 50 grams.” – Porter, in an interview with Insider

Australian federal law still prohibits cannabis possession, use, and cultivation; the ACT law is set to take effect on January 31, 2020.

Porter called the reforms “terrible laws for a variety of reasons.” Porter has previously said that the cannabis reforms might have no impact because of separate laws in the commonwealth that still provide for the prosecution of cannabis-related crimes.

Following the measure’s passage, Health Minister Greg Hunt said federal officials had “no plans” to fight the law but Porter said federal interference isn’t even necessary because of how the law is written.

“If they leave their law as it is, why would there be any need to override a law which is effectively to no effect?” he said in the interview.

Australia has legalized medical cannabis nationwide but non-medical possession and use remains illegal.

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Massachusetts Cannabis Patients Ask to Join Lawsuit Challenging Vape Ban

10/21/2019

Four Massachusetts medical cannabis patients are asking to join a lawsuit brought by the Vapor Technology Association against the state’s vaping ban, the State House News Service reports. The four-month ban was issued by Gov. Charlie Baker last month after 61 people in the state fell ill with the vape-linked pulmonary illness.

The lawsuit against the state – brought by the association on behalf of several retailers – argues that the ban has “shuttered and will irreparably destroy Massachusetts‘ $331 million nicotine-vapor-products industry, and the livelihoods of the 2,500 workers that it employs,” the report says.

Will Luzier, a cannabis advocate who spearheaded the 2016 campaign to legalize cannabis in the Commonwealth, is asking to join the lawsuit because the vape ban is preventing medical cannabis patients from accessing vape products they have long used for medical cannabis delivery.

“The governor’s ban was overly broad, and there’s no credible scientific evidence that licensed, regulated medical marijuana has caused vaping problems.” – Luzier, to State House News

Dr. Michael Siegel, a professor at Boston University’s School of Public Health, testified on Friday that there “is no rational basis” to banning legal vaping products since federal health officials have linked the illness to counterfeit and illegal cannabis vape products. Hew said the ban was “not in the public’s best interest.”

The Vapor Association is also suing in Federal Court but a Tuesday hearing on the matter was postponed.

Attorneys for the medical cannabis patients are due back in court today and a judge is expected to rule on the plaintiffs’ request for a preliminary injunction, which would lift the ban as the case works through the courts.

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How does blockchain work?

Cannabis and blockchains

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