Biden Wouldn’t Legalize Cannabis Due to ‘Gateway Drug’ Concerns

Former vice president and current Democratic presidential candidate Joe Biden said during a town hall event in Las Vegas that he does not support federal cannabis legalization because of the lack of evidence “whether or not it is a gateway drug.” He did, however, support the federal legalization of medical cannabis and the federal decriminalization.

In the Fox News video, Biden said that he believed that states “should be able to make a judgement” to legalize cannabis but that the federal government should “know a lot more about the science” of cannabis before federal legalization.

“… I want to move it from a … Schedule I drug to a Schedule III so you can, in fact, do [research]. I support the use of medical marijuana but here’s the deal … it should not be a crime. It should be, to the extent that is exists and anyone who’s ever been convicted of use of marijuana and put in jail that should be immediately released, their record should be immediately expunged … and it is not irrational to do more scientific investigation … to determine whether it’s a gateway drug or not.” – Biden, Las Vegas Town Hall, Nov. 17, 2019, via Fox News

During his remarks, Biden admitted he needed “more data” related to cannabis legalization but that “no one should go to jail” for cannabis “period.”

According to a USA Today report, all of the Democratic candidates approve some form of cannabis law reform, whether it be a let-the-states-decide approach or supporting legislation to end federal prohibition.

Among the frontrunners for the nomination, Sen. Bernie Sanders (I-VT) has indicated he would legalize cannabis federally within his first 100 days in office. South Bend, Indiana Mayor Pete Buttigieg supports the decriminalization of all drugs. Sen. Elizabeth Warren (D-MA) is a sponsor of the Marijuana Justice Act which includes cannabis legalization and criminal justice-related reforms.

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New Jersey Cannabis Patient Sues Amazon for Wrongful Termination

An Amazon employee and registered medical cannabis patient from Middlesex County, New Jersey is suing the online retail giant claiming he was wrongly terminated from his job at the company’s Edison distribution center after failing a random drug test for cannabis, according to an NJ Spotlight report. The plaintiff, who is identified in court documents as D.J.C., said he was “shocked” that he was the first medical cannabis patient the company had encountered.

D.J.C. worked as a warehouse associate for 10 months prior to the drug test and was fired a month later. He claims that company officials didn’t allow him to list the medications he was taking prior to the test and seemed confused when he told him he’s a registered medical cannabis patient.

“They had a zero-tolerance policy against illegal drugs, and to me that wasn’t an illegal drug. That was my medicine,” D.J.C. told NJTV News, adding that human resource officials told him he wasn’t being terminated but, instead, was being placed on “disability leave” while the company awaited paperwork from his physician.

Once Amazon received the paperwork, D.J.C. says, he was terminated for failing to tell them he used medical cannabis, citing Amazon’s zero-tolerance drug policies.

Walter Dana Venneman, the attorney for D.J.C., told NJ Spotlight that his client was given “three terminations, each for a different reason.”

“It’s almost like whack-a-mole. And what strikes me most in those three separate terminations, and it’s laid out in the complaint, is that at no point, ever, did they consider, ‘What might we work out with our good employee?’ Doesn’t matter if it’s medical cannabis, or it’s some other medication, or a limitation on hours. Whatever it is, they have to make an effort to make a reasonable accommodation. And they could’ve easily done that here. And my client did not come to work impaired at that workplace.” – Venneman, to NJ Spotlight

D.J.C. claims that the termination from the warehouse “blacklisted” him from other jobs at firms owned by Amazon, such as Whole Foods.

Last session, New Jersey lawmakers passed a bill that prohibits companies from punishing employees because of their medical cannabis use so long as they are not intoxicated on the job and can provide their valid medical cannabis identification card. D.J.C. is seeking reinstatement, back pay, and punitive damages.

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Nevada Bar Allowing Attorneys to Advise & Invest In Cannabis

The Nevada Bar has not disciplined any attorneys who are participating in the cannabis industry in the three years following legalization, the Nevada Independent reports. The welcomed news for attorneys participating in the space comes after the Bar warned in 2017 that those lawyers working with cannabis businesses could face discipline.

Daniel Hooge, bar counsel with the Nevada Bar, said that the Office of Bar Counsel has sent some attorneys through their professional substance abuse treatment program but “none used marijuana exclusively or worked in the industry.”

A Nevada Independent analysis of ownership state data found that there are at least 68 lawyers among the nearly 1,400 owners and board members who applied for or received adult-use cannabis licenses in the state – those figures do not include the attorneys who work with cannabusinesses but are not personally invested in the business.

In 2017, the state Supreme Court adopted language saying that participating in the industry “may result in federal prosecution and trigger discipline proceedings” under a section of Supreme Court rules addressing attorneys convicted of crimes.

Ed Bernstein, a Nevada lawyer who has an ownership stake in Paradise Wellness Center LLC., said the ruling was “a very subtle reminder” by the court that cannabis is not federally legal and that if there was a problem the court “may have to deal with it later.”

“The world is changing very quickly and I think the Supreme Court is on board with some of those changes.” – Bernstein, to the Independent

Since the proliferation of relaxed cannabis laws, several state Bar associations have released guidance prohibiting attorneys from working with cannabis businesses due to federal law while others have changed their rules to allow them to work in the space. To date, no attorneys have been punished for advising cannabis industry clients in states where it is legalized.

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Detroit Passes Adult-Use Cannabis Industry Ban

Detroit, Michigan has banned recreational cannabis operations, joining 79 percent of the state’s municipalities in barring adult-use dispensaries and cultivation within their city limits, the Detroit Metro Times reports. Cities and towns that don’t permit recreational sales will not get a share of the 10 percent excise tax imposed on recreational cannabis sales.

The City Council passed the ban five days after the state began pre-qualifying current operators for recreational sales. The Detroit action is expected to be temporary until at least January 31 as local lawmakers hope to create new city-specific regulations for the industry.

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 figures outlined in the report. By 2022-2023, that is expected to reach $287.9 million. The tax revenues derived from cannabis will be used for schools and roads, and be split among the municipalities that opt-in.

Current medical cannabis businesses who are pre-qualified are allowed to transfer up to 50 percent of their product for recreational sales, according to a bulletin sent to operators summarized by the Detroit News.

Marijuana Regulatory Agency spokesman David Harns said the allowance “will keep production and sales on the medical side moving as well.”

Adult-use sales are expected to roll out January 1, albeit on a limited basis.

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Oregon Court Strikes Down Cannabis Vape Products Ban

The Oregon Court of Appeals has extended the injunction on the state’s six-month ban on flavored vape products to cover cannabis vaporizers, Oregon Live reports. The court halted the ban on nicotine products last month but the new ruling extends to protect cannabis from the ban, as well.

Gov. Kate Brown (D) enacted the ban on October 4 following the spate of pulmonary lung illness linked to vaping. Last week, the Centers for Disease Control announced they had connected the disease to vape products containing vitamin E acetate – which the New York Health Department had linked to unregulated and counterfeit cannabis vape products in September.

The Court of Appeals’ decision on flavored cannabis vapes came in response to a lawsuit against the Oregon Liquor Control Commission by Herban Industries, which sells Winberry brand vape oil products. Those products contain a proprietary blend of terpenes that copy those found in cannabis but, because those terpenes aren’t derived from actual cannabis plants, the OLCC ban on terpenes in vape products affected the firm’s products, which comprise 80 percent of the company’s revenue.

The Court of Appeals case dealing with nicotine vapes was brought by the Vapor Technology Association trade group. In that case, the appeals court agreed that the vape ban enacted by the Brown administration would “cause the entire industry in Oregon to be destroyed.”

A similar ban failed a court challenge in New York last month.

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Sanders, Buttigieg Would Support Medical Cannabis for Veterans as President

On Veteran’s Day, Democratic presidential hopefuls Sen. Bernie Sanders (I-VT) and Mayor Pete Buttigieg each announced support for allowing military veterans to access medical cannabis, according to an MG report.

Sanders, who has said he would legalize cannabis federally via an executive order within his first 100 days in office, said on his website that the nation has a “moral obligation to provide the best quality care” for veterans, which includes allowing Veterans Affairs doctors to recommend cannabis to their patients. Additionally, Sanders would allow servicemembers discharged from military service for cannabis possession to apply for a discharge upgrade “so they can become eligible for the full complement of services and benefits provided by the VA.”

Buttigieg, mayor of South Bend, Indiana and Navy veteran, said that his administration would “work with the VA to allow medical cannabis for service-connected diagnoses.”

“Pete will push for the legalization of marijuana on the federal level and nationwide,” the post titled “Our Shared Duty” says.

“In the meantime, recognizing the benefits of marijuana for certain service-connected issues like post-traumatic stress, Pete will support legislation that will empower VA physicians to issue medical cannabis recommendations to augment a veterans’ broader treatment plan, accordance with the laws of states where it is legal, and to conduct studies on the use of marijuana to treat pain.” – “Our Shared Duty,” Pete Buttigieg campaign website

Last month, during a campaign stop in Las Vegas, Nevada which included a visit to a dispensary, Buttigieg told the Associated Press that he has used cannabis “a handful of times a long time ago” and said he supported the end to federal prohibition.

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Full Spectrum CBD Oil vs. Isolate

What’s the difference between CBD sourced from hemp, cannabis, or in an isolate? Do they work differently in the body and brain? Which one should I use?

If you’ve been asking yourself these questions lately, we don’t blame you. There’s a lot to know about the cannabis plant, let alone its individual compounds. Cannabidiol, or CBD — one of the active but nonintoxicating chemicals in cannabis — is all the hype right now, which means that CBD research has been increasing as well. This is good news because cannabis prohibition has until recently made research into the plant next to impossible.

Today, a strong majority of U.S. states have legalized the use of medical marijuana; even still, we are searching for answers about how the components of cannabis are interacting to produce the effects they cause in our body. The recent increase in medical and recreational legalization makes understanding these effects, and the distinctions between the compounds, extra important.

Silhouette of a man in a sun-lit hemp field.

Hemp vs. Cannabis

Cannabis has been used for centuries for a variety of spiritual, medicinal, and recreational purposes. We can split the cannabis plant into two main categories: marijuana and hemp. Hemp originated in China and contains less than 1% of THC. Because of this, it does not have intoxicating effects and is mainly utilized for its ability to produce strong fibers — there is a record of these uses as early as 2800 BCE. THC-rich cannabis, on the other hand, originated in the Tibetan Plateau region. It has higher THC content (above 1%) which is responsible for the plant’s intoxicating effects. Cannabis is often further split into subcategories (like the subjective indica/sativa/ruderalis identifiers), but we’ll just focus on CBD from here on out.

CBD is present in both hemp and cannabis and has become widely known for its therapeutic properties treating anxiety, pain, and inflammation, and other conditions. It has been getting media attention for its medical benefit, especially after research came out that it can drastically reduce instances of seizures in children with epilepsy. Researchers think this happens by modulating the release of glutamate, the brain’s main excitatory neurotransmitter (meaning it creates a lot of activity in neurons). This is just one benefit among a multitude of CBD’s therapeutic properties.

So, which is better?

One reason a person may choose hemp-derived CBD over marijuana CBD is because hemp is federally legal in the US (as long as THC content does not exceed 0.3%) while marijuana is not. President Trump last December signed the 2018 Farm Bill, which legalized the growing of hemp, mainly for the benefit of farmers. Hemp CBD also contains little to no THC, so it may be better for children who are taking it for epilepsy, or for people who simply don’t want to feel high.

CBD Isolate

The Farm Bill legalized hemp, but details on the possession and use of CBD for research purposes still remain fuzzy. This is part of the reason why there has been an increase in the production of CBD isolate, which is different from both cannabis- and hemp-derived CBD because it only contains CBD and is devoid of the other compounds that whole-plant marijuana and hemp contain. If people are looking to use CBD for its array of therapeutic benefits but don’t want the intoxicating effects of THC, they may go with the isolate option. There is also speculation that CBD in isolate form is a more potent and more efficient form of the substance.

A row of CBD oil glass dropper bottles has been arrayed on a wooden surface against a white background.

The Entourage Effect

The entourage effect is the main reason to go for whole-plant CBD. The entourage effect posits that the chemicals in the cannabis plant work together synergistically to produce the therapeutic benefits we see in the research. This means if you’re looking for CBD to manage pain, anxiety, etc., it may actually be helpful to have a little bit of THC present because their synergy changes the therapeutic benefit compared to if you just had CBD isolate. Because cannabis legalization occurred fairly recently, there is much more research to be done on how the various compounds in cannabis, like CBG, CBN, and terpenes, affect our body and work together with CBD and THC to create the different profiles seen in cannabis. 

Choosing a form of CBD that will be right for you may take some trial and error. If you go the whole-plant route, there are a ton of options in terms of CBD/THC ratios. Certain websites now let you explore unique strains and their cannabinoid breakdown, so you can pick and choose the kind of cannabis you want. If you’d rather go for isolate, the internet is chock full of different kinds of tinctures you can now purchase legally (if they’re hemp-derived, that is. If you live in a state where recreational marijuana still isn’t legal, the laws are vaguer). There are benefits to each depending on what you’re ultimately using the CBD for, so we hope you choose wisely.

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Trying Cannabis for the First Time: What to Know

Cannabis policy in the United States is developing quickly; eleven U.S. states have now have established legal, adult-use cannabis markets. So, whether you are an avid user of cannabis, know people who are, or are simply curious about what all the hype is about, it’s important to know how cannabis affects your brain and body — at the very least, so you don’t end up uncomfortably stoned on the floor of some friend-of-a-friend’s apartment (don’t worry, we’ve all been there).

Knowing a little about the compounds in cannabis can help you choose the right strain with the right cannabinoids for you.

The Nitty Gritty

∆9-Tetrahydrocannabinol, or THC, is the chemical produced by cannabis that’s responsible for the feeling of being “high.” THC activates receptors in our body called cannabinoid (CB) receptors. These receptors are part of a system called the endocannabinoid system (ECS). The ECS is widespread throughout the brain and body.

Studies show that CB1 receptors present in the forebrain can affect executive functioning and decision making when activated, and those in the hippocampus play an important role in memory. CB receptors are also widespread throughout the body, present in places like the lungs, gastrointestinal tract, and the immune system. Not surprisingly then, the endocannabinoid system is responsible for a multitude of bodily processes like appetite, pain modulation, memory, mood, and a vast array of others.

There are two known chemicals naturally produced by our body that activate receptors in the ECS — 2-arachidinoyol-glycerol (or 2-AG) and anandamide. These chemicals contribute to the ECS’ role of homeostatic regulation — which is basically your body’s way of checking in with itself and making sure things don’t get too out of whack. When you smoke cannabis (or eat it, swallow it, vape it, rub it, or consume it by any other method), THC enters the brain and binds to these receptors. Because THC is now present, this makes it harder for the cannabinoids that our body naturally produces to do what they do best, and this can throw off homeostatic regulation. This is why you might get “the munchies” or find that your memory is not the best after you smoke — because THC is taking the place of the chemicals that normally regulate appetite and memory.

Benefits of Cannabis Consumption

Despite symptoms like increased appetite, fatigue, and paranoia, THC has been known to help people with various conditions, one being insomnia — studies have shown THC can partially restore the regulation of sleep. It also helps those who struggle with eating disorders by restoring appetite. And THC is just one of over 100 cannabinoids in cannabis.

Cannabidiol, or CBD, is another immensely popular cannabinoid — it is nonintoxicating, however, meaning it doesn’t make you feel high. Studies show that CBD can help people suffering from epileptic symptoms see major reductions in seizures. CBD can also help cancer patients endure chemotherapy and can weakly activate some CB receptors that regulate inflammation, but it also works through other mechanisms like the serotonin system. This floods the body with messages, which will have different effects depending on where certain receptors are located. If CB receptors in the lymph nodes are being activated as part of the immune response, the message could be telling the body to lower inflammatory responses, thus decreasing pain for inflammatory conditions (which is why CBD helps with pain modulation).

So You Want to Try Cannabis?

If you’re new to the hype, it may feel overwhelming to figure out where to begin. There are many different ways you can consume cannabis which will vary your high both in intensity and duration.

Smoking/Inhaling

Smoking cannabis is the fastest way to feel its effects because the compounds go straight into your bloodstream via lung capillaries. This means you may start to feel high within minutes; the sensation typically lasts 1-2 hours. When you smoke, the chemicals in the cannabis are carboxylated and transformed into their active forms. Most flower has THC contents between 5-25% and if you’re just starting out, it may be good to start low due to having a low tolerance. Smoking also gives you more control of your dose because you can load the bowl with as much or as little flower as you’d like.

A woman smokes a hand-rolled joint at an open window in the city. Photo credit: Tobias Tullius

Vaporizing, on the other hand, simply heats up the compounds without burning them. Many people argue that vaping is healthier for your body and can lead to a more efficient high, however this is still being studied. Another factor to consider with vaping is that most vapes use concentrated oil which can have up to 80% THC present. Because of this you will experience a substantially more intense high.

If you still want to go the vape route for its potentially better treatment of your lungs, there are dry flower vapes available in which you fill the vaporizer directly with flower just like you are loading a bowl.

Edibles

Edibles have become a popular way to consume cannabis with their bright and bold packaging and yummy infusions into foods like candies, cookies, and even beef jerky. The most important note to consider when taking the edible route is its bioavailability. When cannabis enters your digestive system, it activates more slowly because it must be processed by enzymes in your digestive tract. Many unwilling victims are all-too-familiar with the experience of taking an edible and not feeling anything 45 minutes later, so they take more. Little did they know that on its way to the liver, the body converts THC into a much more potent metabolite called 11-hydroxy-THC. Then, all at once, the intoxication spikes and they are way, way too high.

That’s why, if you are a first-time consumer, it’s recommended that you start with a low dose of 1-5 mg THC and exercise patience. It is also a good idea to have food in your stomach and to be properly hydrated.

A stack of chocolate chip cookies displayed next to a cured & trimmed cannabis nug. Photo credit: Margo Amala

Tinctures

Using cannabis in the form of a tincture follows the sublingual route of administration. Tinctures are usually alcoholic extracts containing cannabis and may be an appealing method if you want to avoid smoking. Often, a user will take a drop of the tincture under their tongue and the extract will enter the body via blood vessels there. This onset is quicker than an oral route because the compound does not have to enter the digestive system (unless you choose to add the tincture to your food or beverage).

Users may feel effects after about 15 minutes and effects should last about 90. Like inhalation, this route of administration gives you some dosing freedom because you can control how much you want to take.

Topicals

The last common way to consume cannabis is with topical lotions and salves. This method is useful for localized or chronic pain because the cannabis-infused rub can be applied in a specific region and can permeate the skin there to benefit that specific area. Many people use topicals for arthritis, inflammation, or general muscle soreness. Even if the lotion or salve contains THC, you will not feel high from this route of administration because the cannabinoids do not typically penetrate deep enough into the bloodstream to cause intoxicating effects.

A CBD-infused topical rub is displayed next to several cannabis leaf trimmings. Photo credit: CBD Infos

What about CBD?

Because of the expanding market, most if not all of these consumption methods can involve a variety of CBD:THC ratios. There are tinctures derived from hemp, meaning they are CBD dominant and legally cannot contain more than 0.3% THC. You can get flower, tinctures, and salves that have 1:1 or 2:1 THC:CBD ratios. You can even find flower that is CBD-rich with only trace amounts of THC if you don’t like the feeling of being high but still want the therapeutic benefits of cannabis. The cannabis world is your oyster — especially if you live in one of the 11 states that have legalized for adult use.

The Bottom Line

Scientists have learned a lot about cannabis and its effects since THC was first discovered in 1964, and even more research coming out about the other main cannabinoids present in cannabis. However, because each brain works a little differently, the specific cannabis sample that may help you with anxiety problems could have a different effect on someone else.

If you’re new to cannabis consumption, think about the method you want to begin with and start with a low dose. Be patient with the process and keep in mind that not all endocannabinoid systems are made the same. 

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California Study to Research Safe Pesticide Levels for Cannabis

In January, researchers at the California Department of Pesticide Regulation and Sacramento State will offer cannabis users a $20 gift card in exchange for them anonymously sharing how much cannabis they consume in an effort to help determine accurate safety levels for pesticides used for cannabis cultivation, according to a Capital Public Radio report.

Charlotte Fadipe, a spokesperson for the regulatory agency, said neither federal nor state regulators have any good data on pesticide use when it comes to cannabis and, in order to calculate those levels, officials need to know how much cannabis people are consuming.

“We had talked to people in other states … and looked at tobacco levels, but we didn’t actually have any data on cannabis consumption itself. If it turns out that people are eating a lot more cannabis products than we initially thought, we might need to lower the levels.” — Fadipe, to CPR

The agency plans to set up tables at dispensaries throughout the state and ask customers to take a 20- to 60-minute anonymous survey detailing how much cannabis they smoked, ate, or used in topicals, and where they purchased the products and whether they shared them with others. Interested individuals can also sign up for the survey online.

According to CDPR data, there are 36 active ingredients allowed to be used in cannabis cultivation in the state; another 46 are banned. Following legalization in the state, the failure rate for pesticide levels in the state’s industry was about 20 percent but by November that figure dropped to about 14 percent, according to an Associated Press report.

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Illinois Awards First Adult-Use Dispensary Licenses

Illinois officials have issued 14 “same-site” adult-use cannabis licenses and the locations will be the first to offer recreational sales beginning January 1, ABC 7 reports. The businesses are the first in the state to be licensed to sell recreational cannabis.

Three of the licenses were issued to operators in Chicago – MedMar, Dispensary 33, and Maribus of Chicago – while the rest were issued to current medical cannabis sellers in Buffalo Grove, Mundelein, Elmwood Park, Naperville, Joliet, Canton, Champaign, Effingham, Grandview, and Rockford.

The companies who received licenses are allowed to sell to non-medical patients from their current storefront and are permitted to open another adult-use-only dispensary at a second location. According to the report, officials plan to award 75 additional adult-use licenses to new, and social equity, applicants next year. In all, there are currently 55 medical cannabis dispensaries in Illinois.

In September, the state granted its first adult-use cultivation licenses to Cresco Labs, PharmaCann, Ascend Illinois, and Columbia Care. Cultivation applicants had to pay a $100,000 application fee and commit to participating in the social-equity program included in the law. The Illinois Department of Financial and Professional Regulation has also named so-called “responsible vendors” that will provide health and safety training to the state’s cannabis dispensary operators.

Adult-use sales are set to begin in Illinois on January 1 under a legalization bill signed earlier this year.

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Chicago Mayor Proposes Major Cannabis Policy Changes

Chicago Mayor Lori Lightfoot has proposed a plan to reduce penalties for unlawful cannabis possession and end the police policy of automatically impounding vehicles from drivers in possession of cannabis, NBC Chicago reports. The move is a step toward aligning the city’s laws with the recreational cannabis laws passed by the state legislature in June.

Under the proposal, penalties for unlawful possession would be reduced from $500 for first-time minor offenses to $50. Under the state’s cannabis law reforms, adults can possess up to 30 grams of flower and transporting under those limits in a vehicle is permitted, as long as the products are in a sealed container.

The plan would also amend Chicago Police enforcement rules to educate officers on the new state law and outline activities that will remain illegal such as smoking cannabis in any public place, in a vehicle, or other areas protected by the Smoke Free Illinois Act.

“For far too long, unjust and outdated cannabis enforcement laws have adversely and disproportionately affected Chicago’s black and brown neighborhoods. The legalization of cannabis in Illinois presents a powerful opportunity to reform our policies, and right these generation-old wrongs of the past as we work to ensure a safe, fair, and responsible implementation in Chicago.” – Lightfoot, in a statement, via NBC Chicago.

Chicago Police Department Eddie Johnson said that the training will occur “over the coming months.”

“By overturning outdated cannabis laws, Chicago’s police officers will finally have a smart, sensible, and safe framework that prioritizes public safety of all residents in this city,” he said in a statement to NBC Chicago.

The new city rules would take effect on January 1 – the same day the statewide laws go into effect.

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The Vape Crisis Is a Byproduct of Federal Cannabis Inaction

Editor’s note: This op-ed was contributed by Brett Husak, a founding partner of the cannabis-focused payment processing service Flow Payments.

At the end of August, a health advisory released by the Centers for Disease Control and Prevention (CDC) linked the use of e-cigarette products with severe pulmonary disease. As of last week, the CDC had confirmed over 2,000 cases of lung injury and 39 deaths related to vaping.

In response, Massachusetts declared a public health emergency and became the first state to enact an all-out ban on the retail and online sales of vape products. Gov. Baker outlawed the sale of all nicotine and cannabis vaping products for four months, while the state continues to examine the root cause of these illnesses. The states of Washington and Oregon followed suit with their own bans. These extreme measures were enacted before the CDC had even identified the primary culprit, vitamin E acetate, which recently surfaced as a cutting agent for unregulated cannabis vape products.

In fact, it appears that most if not all of the cannabis-related cases were caused by products obtained illegally, which is the first indicator that the statewide bans are an overreach and overreaction. The regulations seem overly harsh especially due to the fact that alcohol and cigarette-related deaths in our country are not insignificant — according to the CDC, cigarette smoking accounts for over 480,000 deaths annually. That is the equivalent of about 1,300 deaths each day. Meanwhile, excessive alcohol use takes the lives of around 88,000 people per year in the U.S.

Globally, the number of vapers has been increasing steadily over the past few years, while the number of cigarette smokers has simultaneously decreased. Public health experts agree that even with the current risks, e-cigarettes carry only a fraction of the dangers of traditional cigarettes. The vape market combined worth is estimated to be close to $20 billion worldwide and it is a progressively important product line in the cannabis space as well.

In the thriving legal markets across America, vape products represent approximately one-third of cannabis business’ sales. It is typically the second-most frequently sold product, only trailing behind cannabis flower products. However, since this latest health scare, analysts have noted a 15% drop at least in nationwide market share during the month of September and in some states, such as Oregon, a decrease of 60%. This needless and unnecessary damage to the revenue streams of countless dispensaries nationwide would clearly be avoided with federal legalization and regulation. 

It is interesting to note that nicotine vapes are regulated by the Food & Drug Administration (FDA), but nicotine vape liquid is simple to replicate in an illegal manner. Nicotine extract can be purchased online in bulk and mixed with additives, flavors, and thickeners, whereupon it is then distributed to certain retailers.

Vapes containing cannabis, however, are legal in certain states but are not regulated by the FDA and cannabis remains listed as a Schedule 1 controlled substance alongside heroin and LSD. FDA scientists, therefore, are unable to assist states with research, testing, and safety guidelines, making it difficult for legal cannabis businesses to supersede the criminal market. Consequently, legitimate manufacturers are required to submit plants or extracts to state regulators for contamination and quality tests, which significantly raises the costs, upwards of 5 to 7 times, of what consumers can otherwise find on the black market. Illegal sellers can also tamper with cartridges and mix in substances like caffeine or alcohol to extend their supply.

An easy fix

The facts support the argument that a well-regulated marketplace for vape products would establish quality control, better research, and deter consumers from acquiring illegal and counterfeit products. Furthermore, national standards for cannabis vape products would create a baseline for comparisons, which is so essential in today’s marketplace. Finally, we have witnessed that states can only do so much in the area of regulation, and their limitations are one more reason the federal government needs to remove cannabis from the Controlled Substances Act, fund state and national medical investigations, and finally regulate this plant.

 

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Canadian Cannabis Firms See Flower Prices Decline

British Columbia, Canada-based Tilray sold 10,848 kilogram-equivalent of cannabis domestically and internationally during the last quarter but reported a 30 percent decrease in the net price-per-gram to $3.25, the Financial Post reports. The drastic drop in per-gram prices led to a net loss of $35.7 million for the quarter, which ended September 30, up from their $18.7 million net loss a year ago.

The company’s revenue was up $12 million for the quarter to $67.8 million, which CEO and President Brendan Kennedy said “reflects positive business trends” paired with the firm’s “sequential gross margin expansion.”

Just 30 percent of Tilray’s total revenue for the quarter was derived from adult-use sales – a 2 percent decline from the previous quarter.

Cronos Group Inc., another licensed producer in Canada, sold more than 3,000 kilograms of cannabis during the quarter with revenues of $12.7 million; however, the majority of those sales came from wholesaling to other licensed companies rather than private and provincial-run retailers, according to the report.

The company reported a per gram price of $3.75, which is 42 percent lower than three months ago. Cronos recorded an overall profit of $788 million for the quarter but that was mostly due to proceeds from a one-time $835 million revaluation of derivative liabilities. Their net revenue was 25 percent higher than the previous quarter, while the company’s adjusted gross margins fell 12 percent to 41.5 percent, according to the Post.

Organigram Holdings reported a 34 percent decline in net revenues to $16.3 million and forecast a write-off of $3.7 million due to “product returns and adjustments” the report says.

The figures for a few of the nation’s largest companies – financial reports for Canopy Growth Corp. and Aurora Cannabis are due out later this week – come about a month before Canadian retailers are expected to begin selling edibles and alternative cannabis products, which could be a boon to the bottom lines for licensed producers throughout the Great White North.

In July, a Statistics Canada report found that illicit cannabis products cost, on average, about $4.72 less than their legal counterparts and that 59 percent of cannabis consumers in the nation bought cannabis illegally at some point during the year.

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Massachusetts Cannabis Regulators ‘Quarantine’ Vape Products

The Massachusetts Cannabis Control Commission has “quarantined” all vaporizers except for those “designed to exclusively vaporize marijuana flower for medical use patients.” The move comes less than a week after the federal Centers for Disease Control linked vitamin E acetate to the vaping-associated pulmonary injury. The substance was found in illegal and counterfeit cannabis vape pen products.

Last month, following the rise in reports of the illness throughout the U.S., Gov. Charlie Baker (R) ordered a four-month ban on the sale of both cannabis and nicotine vaping products. That ban was, ultimately, challenged in court. Last week, a state Superior Court judge overruled part of the order, deciding that medical cannabis patients could buy vape products unless the CCC ruled otherwise, according to a Boston Herald report. The judge said that only the commission had the authority to ban medical cannabis products.

The CCC last month announced that they would require more detailed labeling of all cannabis vape cartridges, extracts, and concentrates amid the outbreak. Under those requirements, manufacturers must include on their ingredient list every additive used in the product, including thickening agents and specific terpenes.

“Current manufacturing processes and information available to the Commission do not definitively preclude the possibility that licensed vaporizer products contain vitamin E acetate or other potential ingredients of concern.” — CCC, “Quarantine Order Applying to Vaporizer Products,” Nov. 12, 2019.

Dr. Peter Grinspoon, a primary care clinician at Massachusetts General Hospital, said during a press conference that the ban could “drive everyone to the illicit market” which is where people were likely getting the products that were making them sick in the first place.

Cannabis Control Commissioner Shaleen Title said the ban is not “open-ended” and is “based on credible evidence.”

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Missouri Proposes Cash Ban for Cannabis Company State Payments

The Missouri Department of Health and Senior Services has proposed banning the state’s medical cannabis businesses from paying their taxes, fees, and penalties in cash. DHSS spokesperson Lisa Cox told 41 Action News that “large amounts of cash-handling will create challenges for state agencies and may create safety issues for medical marijuana facility employees.”

“As we have done with all of our rules, we have put this out for public comment in order to hear from the public whether they have concerns with this proposal and, if so, what they are. The emergency rule has not been filed, and we will consider all comments we receive before determining whether to file it.” – Cox, to 41 Action News

Specifically, the rule allows medical cannabusinesses to “pay all fees, penalties, or taxes due to Missouri state governmental agencies via any payment method normally acceptable to those agencies other than cash.”

Jack Cardetti, spokesperson for the Missouri Medical Cannabis Trade Association, called it a “cut and dry rule” but said it would be problematic “because access to banking is one of the more difficult things” in the space.

“You can’t pay your taxes and fees despite being a legal business and cash being a legal tender,” he said to 41 Action News

In the report, Joe Leonard, owner of Bee Valley Farms, said he has been unable to find a bank to work with as financial institutions that would take cannabis industry clients “are few and far between” and “most of them have a limit on how many [cannabis] businesses they’ll take on.”

Last month, the state received more than 2,100 medical cannabis operator applications, of which 1,163 were for dispensary operation and 554 were for cultivation licenses. According to 41 Action News, Missouri’s medical cannabis industry is expected to create 4,000 jobs and bring in more than $500 million.

Cox did not offer a timeline on whether a decision on the rule would be made but said the agency would “review all feedback and evaluate further if needed.”

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FDA Approves Yale Medical Cannabis Human Trials

The Food and Drug Administration has granted approval to the Yale School of Medicine and CT Pharma for human drug trials to study the efficacy of cannabis-based medicines, according to a Connecticut Public Radio report. The study will be the first with FDA approval to test cannabis on human subjects.

Yale University School of Medicine’s Dr. Rajita Sinha, the lead researcher for the clinical trial, said the studies will attempt to figure out how medical cannabis works, who it works for, what symptoms can be alleviated, dosages, and whether there is “a need for refinement.”

Michael Fedele, board chair of the Portland, Connecticut-based CT Pharma, told CPR that he hopes the study will result in the first FDA-approved cannabis-based medicine to be manufactured in the U.S.

“Right now, a company in England (GW Pharma) has the only FDA-approved, plant-based medical marijuana product (Epidiolex) in our market. That really shouldn’t be the case with respect to American companies.” – Fedele, via CPR

According to the FDA, the agency “is aware that there is considerable interest in the use of marijuana to attempt to treat a number of medical conditions” and does support “research into the medical use of marijuana and its constituents through cooperation with other federal agencies involved in marijuana research.”

According to a Hartford Business Journal report, Yale indicated the first phase will examine men and women between the ages of 21 to 45 who use cannabis recreationally but do not qualify for medicinal use. The second phase will focus on men and women ages 21 to 60 with chronic pain. Each participant will receive a placebo, CBD and THC. Side effects such as vital signs of heart rate, systolic and diastolic blood pressure and clinical symptoms will be assessed.

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Neil Young’s U.S. Citizenship Application In Limbo Due to Cannabis Use

Canadian singer-songwriter Neil Young is applying for U.S. citizenship but his cannabis use might stand in his way.

In a blog post last week, Young, 73, said he recently applied for citizenship and “passed the test” but must pass another test “due to [his] use of marijuana and how some people who smoke it have exhibited a problem.”

Young pointed to a 2019 policy alert from then-Attorney General Jeff Sessions regarding “controlled substance-related activity and good moral character determinations.” The alert specifically says that “violation of federal controlled substance law, including for marijuana, remains a conditional bar to establishing good moral character for naturalization even where that conduct would not be an offense under state law.”

“An applicant who is involved in certain marijuana related activities may lack GMC if found to have violated federal law, even if such activity is not unlawful under applicable state or foreign laws.” — April 29, 2019 U.S. Citizenship and Immigration Services policy alert

Young resides in California, where cannabis is legalized for adult use. In the post, Young indicated that he wants “to be a dual citizen and vote” but doesn’t think that he’ll be able to remain in the U.S. during the proceedings.

“I sincerely hope I have exhibited good moral character and will be able to vote my conscience on Donald J. Trump and his fellow American candidates, (as yet un-named),” he wrote.

In a statement to CNN, USCIS declined to comment on Young’s application, noting that “individuals who commit federal controlled substance violations face potential immigration consequences under the Immigration and Nationality Act.” The agency reiterated that the policy “applies to all foreign nationals regardless of the state or jurisdiction in which they reside.”

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High-Profile Rhode Islanders Announce Cannabis Investments

Several high-profile Rhode Islanders are investing in the state’s medical cannabis and hemp industries, according to a NewportRI.com report. Among the names linked to cannabis investments in the state are former CVS Health CEO Thomas Ryan, former gubernatorial candidate James Bennett, former Beacon President and CEO James Rosati, and the parents of professional golfer Brad Faxon.

Ryan, a longtime philanthropist in his home state, is listed on documents from CanWell, a spinoff of the Warwick-based Summit Medical Compassion Center, which hopes to lead the state’s “alternative dosage” medical cannabis market. So-called ‘alternative dosage’ companies are interested in other methods of ingesting cannabis besides smoking.

In 2014, CVS stopped selling tobacco products in its stores, but Ryan left the company in 2011.

Bennett ran for governor in 2002 but was handily defeated in the Republican primary by Donald Carcieri, who ultimately defeated Democrat Myrth York in the general election, according to state election data. Bennett also once headed the Rhode Island Convention Center Authority. Bennet indicated his daughter works in the medical cannabis space in Florida.

“Big tobacco, the pharmaceutical companies, they’ll all looking to get in. It seemed like a good, balanced investment.” – Bennett to NewportRI.com

Brothers Stephen and Gerald Harrington, a lawyer and Washington lobbyist and Democratic political fundraiser, respectively, are also listed on CanWell documents. Stephen told NewportRI.com that a family member undergoing chemotherapy for cancer “relied on” medical cannabis. He added that the people brought together at CanWell “are Rhode Island people.”

They understand this is a growth industry and they are committed to a best-practices approach,” Harrington said in the report.

Brad and Eileen Faxon, the parents of the Barrington native pro golfer who shares a name with his father, are linked to Kelsey Green, a Warwick-based cultivation firm which is yet to be fully licensed to operate, and affiliated company, Green Reservoir Inc, according to documents filed with the state Department of Business Regulation, outlined by NewportRI.com.

A bill to legalize adult cannabis use was introduced last year but never made it out of committee. Gov. Gina Raimondo (D) said earlier this year that she will include legalization in this year’s budget proposal.

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CDC Confirms Vitamin E Acetate’s Link to Vaping Crisis

The Centers for Disease Control (CDC) has linked vitamin E acetate to the worrisome trend of vaping-associated pulmonary injury (VAPI) that has led to thousands of hospitalizations and dozens of deaths throughout the country, Leafly reports. The compound has emerged as a popular cutting agent for illicit cannabis vaporizer products made and sold on the unregulated markets.

“Recent CDC laboratory testing of bronchoalveolar lavage (BAL) fluid samples (or samples of fluid collected from the lungs) from 29 patients with EVALI submitted to CDC from 10 states found vitamin E acetate in all of the BAL fluid samples.  Vitamin E acetate is used as an additive in the production of e-cigarette, or vaping, products. This is the first time that we have detected a potential chemical of concern in biologic samples from patients with these lung injuries.” — Excerpt from CDC website (emphasis included)

Dr. Anne Schuchat, the CDC’s principal deputy director, confirmed the agency’s breakthrough during a Friday press briefing but said more tests will be necessary. “These new findings are significant,” Dr. Schuchat said. “We have a strong culprit.”

So far in 2019, at least 39 patients who were treated for VAPI have died, while more than 2,050 affected individuals — mostly young men — have been hospitalized. According to the CDC, symptoms of VAPI may develop over the course of just a few days to up to several weeks. Patients have reported the following primary symptoms:

  • cough/shortness of breath
  • chest pain
  • nausea/vomiting
  • abdominal pain
  • diarrhea
  • fever/chills
  • weight loss

In September, the CDC disclosed that the vast majority of patients suffering from VAPI had used unregulated THC vaporizer products. The vitamin E compound was identified previously as a potential culprit and was found in unregulated cannabis vapes throughout New York. The compound, however, has not yet been identified in state-regulated cannabis market products — one dispensary in Seattle even tested the vaporizer products on its shelves for vitamin E acetate and found a 100 percent pass rate.

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Cannabis Legalization Revenues in Minnesota Could Reach $300M

Adult-use cannabis legalization in Minnesota could bring in $300 million in taxes for the state over five years on sales of $1.12 billion, according to a MinnPost report. The estimate, by Sal Barnes of the Marijuana Policy Group during last week’s CannConMN Symposium, also suggests that the industry would create 20,000 direct and indirect jobs statewide.

During his keynote remarks, Barnes estimated that there are 115,000 daily cannabis users in Minnesota and cannabis “follows the 80-20 rule” and “20 percent of the consumers produce 80 percent of the market.”

According to the report, about 7.9 percent of Minnesotans say they use cannabis at least once a month – which is below the 9.5 percent national average and the 20 percent post-legalization rate in Colorado. Barnes said that is a difference of 341,000 consumers in Minnesota and 860,000 in Colorado as both states have a near-equal population of adults 21-and-older.

“If you guys are going to create a $1.12 billion adult-use market, the number one thing you can do is have the appropriate amount of licenses for cultivation, manufacturing and retail. There is a delicate balance … on one side is Oregon with unlimited amount of licenses and on the other side is Colorado, where they try to parse out the types of licenses. You have to make it competitive enough to compete with — and preferably end — illegal black markets, but not so uncontained that there is too much supply and no profits for businesses.” – Barnes, during his CannConMN keynote remarks, via MinnPost

At the conference, Minnesota House Majority Leader Ryan Winkler (D) predicted that House Democrats would introduce a bill for the 2020 session and predicted that while it would pass the Democratically-controlled House it would likely falter in the Republican-controlled Senate.

A legalization bill was introduced in the state Senate last year but did not make it out of committee.

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UK Approves Sativex, Epidiolex for NHS Prescription

The United Kingdom’s National Health Service advisory body, the National Institute for Health and Care Excellence, has approved cannabis-derived pharmaceutical drugs Sativex and Epidyolex for use by the NHS, the BBC reports. They are the first cannabis-based medicines to be approved for use by the NHS.

Epidiolex was approved for use in Europe in September, but NICE initially said it was not valued for money and did not recommend CBD for prescription on the NHS. The GW Pharmaceuticals-manufactured drug costs between £5,000 ($6,439.90) and £10,000 ($12879.75) per patient each year but the company has agreed to a discounted price with the NHS.

Sativex, a mouth spray that contains a mix of THC and CBD also manufactured by GW Pharma, has been available on the NHS in Wales since 2014 but regulators in England said it was not cost-effective at a price of £2,000 ($2575.95) a year per patient. The approval in England is for treating multiple sclerosis, specifically the muscle stiffness and spasms associated with the condition. Under the approval, doctors will not be allowed to prescribe it to treat pain.

In 2018, UK law was changed to allow specialist physicians to prescribe cannabis-based medicines, but most doctors have been unwilling to write prescriptions for the medicines because they have not been through randomized controlled trials – both Epidiolex and Sativex have gone through the trial process.

Genevieve Edwards, from the MS Society, said the organization has campaigned for access to Sativex for years and said it is “brilliant NICE has finally listened.” However, she said the guidelines don’t go far enough because no cannabis-based treatments were recommended to treat pain.

According to a recent YouGov poll conducted for the Centre for Medicinal Cannabis and Cannabis Advocacy Support Services, 2.8 percent of Britain’s adult population are using cannabis to treat chronic medical conditions but they must obtain it illegally.

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Poll: 2.8% of UK Adults Use Cannabis to Treat Chronic Medical Conditions

About 2.8 percent of Britain’s adult population — about 1.4 million people — is using cannabis to treat chronic health conditions, according to a YouGov poll conducted for the Centre for Medicinal Cannabis and Cannabis Advocacy Support Services, outlined by the Independent.

More than 80 percent of the survey respondents were from England, although the survey results represent adults in the general population living in England, Wales, and Scotland.

More than half of the survey respondents indicated they used cannabis on a daily basis while just under a quarter said they used cannabis on a weekly basis. The survey found that 44 percent said they spend up to £99 ($127.50), while about one-fifth said they spend between £100 ($128.80) and £199 ($256.30). Another 9 percent said they spend nothing on cannabis, suggesting they grow it themselves or get it for free from friends and family.

Dr. Daniel Couch, medical lead at the CMC, said the survey is the “first time” the nation has “reliable, representative data regarding the number of people in Britain using cannabis as a medicine.”

“The findings are astounding and present a national challenge,” he said in an interview with the Guardian.

Ann Keen, chair of the CPASS and fellow of the Queen’s Nursing Institute, said “safe” solutions for medical cannabis access “must be explored as soon as possible.”

“[The statistics] demonstrate the vast number of patients in the UK with chronic and debilitating diagnosed conditions who feel they have no choice but to expose themselves to all the risks of accessing a medicine that works from the criminal market.” — Keen, to the Guardian

The report comes the same day as the National Health Service advisory body, the National Institute for Health and Care Excellence, approved cannabis-derived pharmaceutical drugs Sativex and Epidiolex for use by the NHS.

Medicinal cannabis remains illegal throughout the United Kingdom.

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California Suspends 394 Cannabusiness Permits

California has suspended 394 cannabis business permits, affecting about 5 percent of the state’s legal supply chain, the Associated Press reports. The move will temporarily reduce the number of legal cannabis operators in the state amid a crackdown on unlicensed operations.

The suspensions include retailers, distributors, delivery services, and microbusinesses that have not completed steps required for the seed-to-sale tracking system, Metrc, according to the Bureau of Cannabis Control.

Bureau spokesman Alex Traverso said all of the suspended businesses had ample time to complete the requirements, and the companies must stop all operations until their licenses are reinstated. He indicated that the requirements only take about three hours to complete and doesn’t think any of the companies will refuse of comply.

“These were just the stragglers. It turned out to be a couple extra months that we gave them. It’s just a matter of getting a password, getting a log-in and doing the training.” – Traverso, to MJBizDaily

California has 7,392 licensed cannabusinesses. The bureau oversees 2,630 companies with either provisional or annual licenses. The state Department of Public Health oversees another 932 manufacturers, while the Department of Food and Agriculture oversees 3,830 farmers.

Josh Drayton of the California Cannabis Industry Association said the action incentivizes the illicit market which he called “a much more affordable option” for consumers. He added that what regulators and the industry should be focused on is “access and affordability.”

According to the MJBizDaily report, the suspensions apply to 63 retailers, 61 delivery services, 47 microbusinesses, 185 distributors, and 29 distributors that are transport-only.

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Drake Launches Cannabis Company with Canopy

Hip-hop star Drake, real name Aubrey Drake Graham, is partnering with Canadian cannabis company Canopy Growth to launch More Life Growth Company in his hometown of Toronto, Ontario. Drake, on Wednesday, posted the logo for the company to Instagram and his team handed out flowers throughout the city before making the announcement.

“The idea of being able to build something special in an industry that is ever growing has been inspiring. More Life and More Blessing.” – Drake, in a statement

Mark Zekulin, Canopy Growth CEO, said the firm was “extremely inspired” with Drake’s vision.

“Drake’s perspective as a culture leader and entrepreneur combined with Canopy Growth’s breadth of cannabis knowledge will allow our new company to bring an unmatched cannabis experience to global markets,” Zekulin said in a statement.

Drake will hold a 60 percent ownership interest in the new company, while Canopy will retain 40 percent. Canopy Growth will provide all of the day-to-day operations and maintenance of the More Life facility and will retain all of the rights to distribute the product cultivated at the facility.

It’s the latest celebrity to join forces with Canopy, who has also partnered with Seth Rogen and Evan Goldberg, the creators of the film ‘Pineapple Express,’ Martha Stewart, Snoop Dogg, Jay-Z, Melissa Etheridge, and Whoopi Goldberg.

According to the More Life trademark filing, in addition to cannabis, the company also plans to sell herbal teas and medicinal herb extracts, rolling papers, hookahs, pipes, and clothing.

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