USDA Approves Five State and Tribal Hemp Programs

2/21/2020

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The U.S. Department of Agriculture has approved five state and tribal hemp production plans as part of its authority oversight of the industry included in the 2018 Farm Bill, the agency announced on Thursday.

The approvals include Washington state, Wyoming, the Otoe-Missouria Tribe of Oklahoma, the Prairie Band Potawatomi Nation of Kansas, and the Santee Sioux Tribe of Nebraska.

The USDA had already approved hemp cultivation plans for six states and seven tribes. As of February 12, another nine state hemp plans are under review by the agency, along with 16 tribal plans. Another 15 states will continue operating under pilot programs laid out in 2014.

According to USDA data, hemp plans from Tennessee and Connecticut are “pending resubmission” which means the plans have been reviewed by the agency but did not meet their criteria for approval; one tribe is also in resubmission status.

Seven other states, along with the U.S. Virgin Islands, are currently drafting regulations for USDA approval, along with four tribes.

Last October, the USDA released its draft rules for domestic hemp production and, since last August, the agency has taken several steps to normalize the industry, including giving hemp farmers access to federal crop insurance programs, such as the Whole Farm Revenue Protection Program – which allows farms with revenues up to $8.5 million to insure their crops – the Multi-Peril Crop Insurance Program, and the Natural Disaster Assistance Program, which protects against losses associated with lower yields, destroyed crops, or prevented planting where no permanent federal crop insurance program is available.

Last year, the agency also clarified its rules for hemp seed importation which allow seeds to be imported from other countries, so long as there is documentation the seeds will produce plants that fall below the federal 0.3 percent THC threshold.

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New Hampshire House Approves Adult-Use Bill With No Regulated Sales

2/21/2020

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The New Hampshire House has approved an adult-use cannabis legalization bill for the third time in as many years, New Hampshire Public Radio reports. The measure was approved by a veto-proof two-thirds majority, but it does not include regulated sales.

Under the proposal, adults 21-and-older would be allowed to possess up to 3/4 of an ounce and grow up to six plants. In 2017, New Hampshire approved decriminalization legislation up to 3/4 of an ounce of flower and five grams of concentrates for adults 18-and-older.

In 2018, Republican Gov. Chris Sununu said he would veto any adult-use legislation approved by lawmakers “regardless of what the language looks like” – which is why the veto-proof majority in the House is particularly important; although the Senate would need to pass the measure by the same margin to prevent the governor from sending it back to the legislature. Sununu remains opposed to broad legalization, but lawmakers believe he might support a measure that doesn’t include sales, according to NHPR.

Last session, the governor vetoed legislation that would have allowed registered patients to home-cultivate up to three cannabis plants. In his veto message, Sununu said that allowing patients to grow their own cannabis would “make the job of law enforcement significantly more difficult,” and that it could reduce the number of patients purchasing cannabis from the state’s dispensaries, according to NHPR.

In 2018, the House passed the legalization bill by a 207-139 vote; in 2019 that margin was 209-147. Both bills stalled in the Senate.

A 2018 report from the New Hampshire Department of Revenue Administration estimates that with a 15 percent sales tax on cannabis sales, the state could expect between $26.7 million and $58 million in tax revenues.

The legalization measure moves next to the Senate.

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Louisiana Licenses 1,500 Businesses to Sell CBD

2/21/2020

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About 1,500 Louisiana businesses have been licensed by the state Alcohol and Tobacco Control Board to sell CBD under the state’s industrial hemp rules, the Advocate reports. The state Department of Agriculture and Forestry has also started licensing hemp farms for the 2020 growing season.

Businesses that have received licenses for CBD sales include pharmacies, chiropractic clinics, and gas stations, among others, the report says.

In Louisiana, there are four types of hemp licenses – cultivation, processing, seed production, and transport.

The first hemp cultivation license in the state was awarded to Nanette Noland, president of the agricultural investment firm Powell Group. The company plans on growing about 500 unobstructed acres and another 500 acres next to pine seedlings. The Powell Group has heavily invested in pine trees, which have turned into a money-loser, Noland said.

“So we have been looking to do something else with this acreage. After some investigation we decided hemp is the way to go.” – Noland, to the Advocate

The company also plans on opening laboratories to test soil and hemp leaves for farmers to ensure they are meeting the state’s strict requirements. Louisiana’s hemp program is just one of six state programs to receive final approval from the U.S. Department of Agriculture – a requirement under the 2018 Farm Bill that legalized hemp federally.

Previously in Louisiana, CBD was considered a Schedule I controlled substance despite the federal reforms.

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Brian Applegarth: California Social Use & Cannabis Tourism

2/20/2020

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As the founder of Enlighten Hospitality Solutions and the California Cannabis Tourism Association, Brian recently returned to our podcast for his second appearance on the show to provide updates on the California cannabis tourism scene, including recent legislative attempts to boost cannabis tourism, the pro-cannabis attitude of many tourists, and more!

You can tune in to this week’s episode of the Ganjapreneur.com Podcast via the player below, or scroll down to read a full transcript of the interview.

Listen to the podcast:

Read the transcript:

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TG Branfalt: Hey there, I’m your host TG Branfalt and thank you for listening to the Ganjapreneur.com podcast where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today I’m joined by Brian Applegarth. He’s the CEO co-founder of Emerald Country Tours, founder of the Cannabis Trail, founder of the California Cannabis Tourism Association. It’s the second time that I’ve had him on the show, so I guess he’s a friend of the show now. He’s led the advancement of cannabis tourism in California, working with brands representing the industry and culture to bring their niche offerings to the mainstream via tourism. He’s an advisor for hospitality-based businesses interested in incorporating cannabis into their model. How are you doing buddy?

Brian Applegarth: Hey, TG. I’m great, man. How have you been?

TG Branfalt: You know, it’s getting colder, it’s getting colder. We’re getting a little closer to legalization in New York. Things are both looking up and a little chilly. You were telling me, we’re chatting to begin with, you’re headed to do a conference, huh?

Brian Applegarth: Yeah, man. Headed to SoCal this week, Southern California for a couple of meetings and then an event which is happening in Long Beach, it’s called The State of Cannabis. It’s a really cool event. It’s really unique actually. Its regulators, its assembly members, its government officials as well as stakeholders and leaders in the cannabis industry all in one room sitting on panels and sharing information. It’s a really important event. Yeah, pretty excited about heading down there.

TG Branfalt: It’s the first time you’ve attended something like this with both regulators and stakeholders?

Brian Applegarth: You know, I was there last year and of course with the association, I lobby and I’m present in Sacramento a couple times a year to be part of the tourism conversation there at the state level. Yeah, it comes in and out as far as my work in that space.

TG Branfalt: Cool, man. I mean, we’re definitely going to talk about that, your firsthand knowledge and some of the stuff that I’m looking to clarify here. Before we get into all of that, man, remind us, as I said, you’ve been on this show before, so some people were probably familiar with your name but might not fully remember what you’re all about. Remind us how you got into the cannabis space.

Brian Applegarth: Yeah, it was approximately five years ago at this point where I moved back to Northern California where I grew up, and I was working in a real estate corporate job. I learned pretty quickly that cannabis had come a long way since I graduated high school in ’98. I was gone for quite a bit of time. When I got back to California, I saw this burgeoning gray market industry and legalization seem pretty obvious that it was coming. I’ve just always been a lover of travel and tourism and hospitality and culture and also a fan of cannabis because growing up in Northern California, that’s just part of our culture here. I went to Oaksterdam University and started making trips up to Mendo and Humboldt. Just really fell in love even deeper with the culture and the story of cannabis in California.

Then I started thinking about what my next move was for my career and my trajectory and quality of life. Cannabis tourism really spoke to me. It’s been its own journey. I jumped in initially with Emerald Country Tours as you mentioned. That was the first of many projects now that I’ve had a hand in and it’s been a pretty wild ride and a really exciting one at that. Where we are today is incredibly exciting because cannabis tourism is at an inflection point and becoming really, really relevant as California goes into its third year of adult use legalization.

TG Branfalt: I mean, there was a lot of stuff in the works. They’d just legalized in California. How’s your business, the tourism industry changed since we last spoke two years ago in California?

Brian Applegarth: Yeah, good question. I say the first two years of legalization, a lot of it has been being an evangelist. Organizing the association, which is essentially a startup. Getting memberships on board, building the actual a board out, the board members. Getting the website. Getting the association up and operational and bridge-building with CalTravel and Visit California and some of the traditional travel tourism hospitality industry stakeholders for California. Now as we wrap up the second year, I think it’s going from an education evangelist role to needing hard data. The traditional industry that’s already established in California as one of the leading tourism regions of the world sees the impact and the opportunity of cannabis tourism and what that means going forward. At this point, at this juncture, everybody collectively recognizes that this is extremely relevant and that there is a cannabis tourist that’s demanding this as part of the California experience.

It’s really disrupting, not in a negative way, but it’s disrupting and it’s providing opportunity for the entire intersection of hospitality, travel, tourism, and cannabis and hemp and CBD. It’s a pretty big conversation. As we go into year three, I think we’re going to see a lot more data come out, which is going to support the traditional industry to be able to formalize strategy and figure out how to talk about cannabis and couch it as a destination product for California.

TG Branfalt: I mean, you’re seeing that in a lot of different states. Just here in New York, I was driving, I was headed to Massachusetts and as I went through Albany, I saw the billboard for the dispensary that was 45 minutes away. The one that I was actually headed to and I’m like, this has got to be great for Lee, Massachusetts. Right? People are driving through and it’s like 45 minutes to a dispensary. How often are people really taking that into consideration with their travel plans?

Brian Applegarth: Yeah, well it’s often, to be honest with you. I mean, cannabis has been in California. It’s been part of our culture. I mean, living in San Francisco, the Haight-Ashbury in general is essentially tied to cannabis tourism with the whole history of the hippies here and things like that. It goes above and beyond retail and consumption. It really gets into the culture and the history of the Northern California region. That’s where I find a lot of interest and my passion really lives is helping make sense of the ecosystem that’s developing. From consumption lounges, to infused dinners, to retailers, to tour companies. Also, making sure that the culture and the historical storytelling of the movement is part of that tourist experience because I think we all know that in today’s world for marketing, that storytelling component and being authentic in that voice is really important. Northern California has got a lot of special assets in that way.

TG Branfalt: How have local and state policies changed as it relates to tourism over these last three years?

Brian Applegarth: Well, as far as legislatively, we had one senate bill that came up. It was 625, and it was essentially about the party bus and the ventilation and being able to smoke. It really spoke to tour companies and what was legal and not legal. Unfortunately, that one did not get through this year, which was a loss for sure. That’s going to be something that we’re going to have to circle back with. That being said, we use these opportunities to educate about how cannabis has a lot of ways that it can be consumed now that go above and beyond inhalation. Of course, you have vape pens and smoking joints and all that, but you also have drinkables, microdosing, edibles. I mean, heck, even the leaf, the fan leaves of the plant are incredibly medicinal, and that’s something that you could put in a meal or make pesto from.

Then when you start talking about Hippie Hill and some of the iconic locations of the cannabis movement, there’s a lot of ways we can start talking about it. SB 625 unfortunately didn’t get through. That being said, the tourists and visitors to our state are showing up and asking questions. Some of the dispensaries and consumption lounges in the Bay Area are reporting that up to 70% of their daily transactions are tourists that are coming in.

TG Branfalt: Unreal.

Brian Applegarth: Yeah, absolutely. When you consider the millions of tourists that visit L.A., San Francisco, Palm Springs, Santa Cruz, it gets to be a bigger and bigger conversation that needs more and more attention. Then of course, okay, so the CDFA in California is currently developing the cannabis Appalachians of the state and they plan on activating that and announcing that in 2021. Once that rolls out, there’s going to be this infrastructure in place that’s really going to support a new narrative that’s going to have protections for local regions of origin so you can have this brand authenticity and start crafting regional narratives about microclimates and terroir and what cultivars or varietals of cannabis grow in what regions. That’s going to be another inflection point once that happens in 2021. For now, going into our third year, I think it’s going to be a year of data. It’s going to be a year of the traditional industry tipping in. You’re going to see destinations start to formalize what is their unique message with cannabis, hemp, and CBD to draw visitors and make it part of that experience-

TG Branfalt: Well, you said that the tourists are coming in and they’re asking questions. What kind of questions? What are people looking for in terms of cannabis tourism?

Brian Applegarth: The tourist profiles we’re seeing, not surprisingly is a pretty wide net. It’s everything from investors that are coming to study the industry so they can prepare for their home markets as they embrace cannabis and have a competitive advantage. You have of course the high school reunion bachelorette parties that want to come in and have a cannabis experience in addition to the wine tasting.

TG Branfalt: That sounds like fun.

Brian Applegarth: Yeah, man, of course. Of course. Yeah, there’s consumption lounge crawls for people that want to go on a three or four consumption lounge hopper in San Francisco or Oakland. There’s tours of manufacturing plants, extraction. Tourists are really asking for, it’s everything from where do I get it to where can I use it. What I advocate for the hotels and concierge in the hospitality industry in general is there’s a few basic questions we need to be able to answer, and that is what’s legal, where can you legally buy it, and where can you legally consume it. That’s a great starting place for any hotel, any hospitality professional to be able to answer.

TG Branfalt: How open are they to doing that? How open are the hotels? Are any of them open to like, yeah, let them vape inside the rooms but obviously no smoking because, I mean, there’s smoking laws in general.

Brian Applegarth: Yeah. I think the conversations move past like how do they feel about it or how open they are. I think that that is informed by leadership. Certain people, depending on whether it’s a hotel that’s more traditional or one that’s more cutting edge and innovative, the leadership of the hotel largely informs what they’re embracing and what they’re not. What’s happening at the end of the second year of adult use legalization here in California is you have tourists showing up demanding it, and there’s issues that are arising that hotels need to deal with. For example, the number of guests that are overdosing on edibles and spending two days in the hotel room under the sheets has gone up. There’s been ambulances called for people who think they’re dying because they overdosed on an edible. There’s smoking in the rooms and vaping in the rooms on non-smoking properties.

There’s also the staff, right? There’s a lot of just the operations of a hotel. It’s like, what do you do when you do have an over altered guest? What is your plan? How do you feel that? How do you troubleshoot that? Also, in the second year of legalization, there’s still a very rampant black market. What a lot of the traditional industry doesn’t realize necessarily is that when you pull up a cannabis delivery in California on the internet and Googled it, it’s quite likely that you’re going to be ordering from a black market operator because they’re hard to tell the difference from. That is illicit illegal activity. It’s a cash transaction. Some of those products don’t go through the testing tier that is one of the biggest benefits of the regulated market is knowing that you have clean medicine and clean products.

At the end of the day, it comes down to the hotel leadership. Is it important for you to mitigate risk? Is it important for you to make sure that your customers are partaking in legal above board activity and transactions and providing the framework for supporting the regulated industry and making sure the safety of your guests? Whether it’s your hotel or amusement park or on your tour company, whatever it is. We really want to support safe and sustainable practices for cannabis tourism so the industry can really thrive. Right now it’s all comes down to communication and education at the B2B level and the B2C level both. That’s one of the pillars of the California Cannabis Tourism Association is really being a trusted source for the best operators in California that are creating this really new and exciting cannabis tourism space.

TG Branfalt: You had mentioned the consumption spaces in a couple of cities. I don’t think that that’s something like a lot of people outside of California really know. It comes as a surprise to me. How many consumption lounges are there? Where are they?

Brian Applegarth: Yeah, in San Francisco we have about 15. You got a couple up in Mendocino. You got I think 10 that have been approved for Humboldt. You got West Hollywood that just opened the first cannabis cafe, which is actually like a dining experience as well as cannabis. It’s like a hostess in the menu.

TG Branfalt: I want to ask you about that. What is that opening of that cafe? Tell us about the future of recreational cannabis in California.

Brian Applegarth: I think it’s one of many iterations we’re going to see as far as how cannabis evolves in an experiential way for customers to consume. I predict that the retailer was the first step and then you had the consumption lounge that was in a lot of respects, it was just bolted onto the dispensary. You have a couple dispensaries that actually made it more of an experience where you get seated and they have dab bars and things like that. Then you have this evolution of the cannabis cafe. I’ve also been to events and gatherings in Northern California where they have multi-course meals with cannabis sommeliers talking about-

TG Branfalt: Aren’t those private normally now?

Brian Applegarth: Those are private, yeah, but that’s like a ticket where you buy it but it’s a private gathering ages 21 and up at a private space. It’s not a public facing restaurant perse but it’s yet another experience. Just like we have Puff and Paint where you instead of sipping wine and painting a picture, you smoke a joint, paint a picture, or drink a cannabis drinkable and paint a picture. I mean, especially with how creative and flexible and incredible cannabis is with its effects, I think we’re going to really see a lot of art and music and innovation.

TG Branfalt: Somebody needs a smoking movie theater right now.

Brian Applegarth: Yeah, man. I mean, that’s part of it too. That’s one of the exciting things about cannabis is unlike wine and beer where a lot of the conversation is around mouth-feel and hops and tannins and legs on the glass of wine, cannabis is really effect-driven. I have this theory that cannabis, the way it’s going to be paired in the future in the tourist experience is going to be by effect. What activity or experience are you going to be doing that day, and what cultivar or varietal of cannabis, at what dose, is going to optimally enhance that experience or make it even more extraordinary by having cannabis be a tool to heighten your senses to complement that experience.

TG Branfalt: I want to switch gears. Earlier, you’re talking about the downsides to what businesses worry about when it comes to allowing consumption. We’re talking about hotels and that sort of thing. When they come to you to help guide maybe their plans or whatever, what questions are they asking?

Brian Applegarth: Man, I mean, it’s basic, right? It’s the beginning. A lot of it is cannabis 101. Obviously, they want to know what’s legal, right? Which I always disclose, I’m not a lawyer, but as I understand it, this is where we’re in in legal law within California. Then we really get into just cannabis 101. That’s where it starts for me with leadership. I talk about what is cannabis now? What’s cannabis 2.0? It’s got tinctures, drinkables, edibles, topicals, transdermal patches. You have CBD drinkables, which is equivalent to a non alcoholic beer. Then you have the super strong ones. Then you have everything in between. Right? It’s choose your own adventure now. When you double down on that with all the different methods of ingestion that are at your fingertips, it’s really reframing the conversation and overcoming that stigma through education and factual education, fact-based education.

I even go into the endocannabinoid system and I talk about the discovery of that, and what a endocannabinoid is versus a phytocannabinoid and how cannabis promotes health and wellness. Then we dive into what is your specific hotel property like? What is your threshold? We can do everything from educating your staff to integrating activities at concierge, to CBD products in lobby shop or in room, to cannabis delivery as a service amenity for your guests. There’s a lot of options on how to make this a really compelling product and tourism and also mitigate risk and drive incremental revenue. It’s a big opportunity. It’s not going away. I often talk about cannabis with the clients I work with. Hemp as far as sustainability, CBD as far as health and wellness, and then of course the higher THC products are really three different buckets that you really have to explore. Then you create a plan for what they’re interested in implementing. Oftentimes, it’s not all the above. I have some people that just want education and to have some activity as a concierge and that’s it.

TG Branfalt: What kind of activities?

Brian Applegarth: Cannabis tours, cannabis experiences. There’s a hotel here in San Francisco named Hotel Zeppelin that’s a really cool cutting edge hotel near Union Square that they have little poker chips at their concierge that gives you 10% off a consumption lounge. Now when guests ask about cannabis, they have some kind of compelling response that actually directs their guests to a really special experience in San Francisco that is legal, compliant and it’s in alignment with the hotel and the hotel guest profile. It could be as basic as that or it could be something more robust where when you check into the hotel, you have a little cannabis menu that actually lives in the room that features products that people can order.

TG Branfalt: That’s phenomenal.

Brian Applegarth: Yeah, it’s exciting.

TG Branfalt: I mean, the opening of that cannabis cafe, I mean, that caught national attention. Right? We wrote about it, there were news stories about it. It was a really big deal. What was the cannabis tourism’s response to the press that that got?

Brian Applegarth: It’s interesting you bring that up. This cannabis cafe and I got to tell you, West Hollywood, I believe they have 15 more lounges coming onboard in the next two years. Right. Yeah, it’s going to be, and they all are a little bit different. You have one that’s more of an edible cafe. It’s no smoking. You’re going to see them differentiate as far as what’s allowed when it comes to consumption and how they build their brand and experience around that. As far as how, you’re absolutely right, it caught national attention. Maybe even international attention because it’s the first cannabis cafe style establishment to open in the United States. It’s been sold out like every single day since it opened. We can call that an initial trend or hey, it’s shiny and new.

I think time will tell, but obviously this is a perfect example of a really powerful asset that’s drawing attention where the destination of West Hollywood is now, I mean it’s exciting. They have something new to talk about. Now understanding that and how to message around that is a little more complicated. Partially, that’s because of the marketing laws. You really can’t promote cannabis consumption. There’s these laws that are barriers and blocking business as usual and people are nervous to take certain steps. It all comes down to communication, figuring out a plan where everybody’s on board, and then maximizing the opportunity whether you’re a Lowell’s cafe in West Hollywood or whether you’re L.A. area or West Hollywood. Yeah, it’s exciting to see it. It got a lot of attention and we’re going to see a lot more of that in 2020.

TG Branfalt: I mean, you’re situated next to, I mean, basically the whole West coast is legalized. Does that have an overarching effect on tourism in California?

Brian Applegarth: Yeah. I mean, I think that if nothing else from an optics perspective, it really shows that there is this alignment for the acceptance of it on the West Coast. There’s strength in numbers, that’s just how the world works. As far as boosting the tourism draw as a West Coast experience, I don’t see that happening yet. I mean that being said, you mentioned earlier on the cannabis trail, which is my nonprofit, it’s a legacy cannabis historical trail that I’m going to be slowly building over the next 20 years. I’m definitely exploring of bringing that up into Oregon and maybe even continue to get North to Seattle where it becomes more of a track along the West Coast that takes you through all the different cannabis country legacy storytelling of the West Coast. Because there’s a lot, there’s a lot to it, and each one of them is unique.

TG Branfalt: Are you doing those tours now like in California?

Brian Applegarth: Yeah. I mean, Emerald Country Tours was interesting because that’s where I put a lot of my effort up front but then life had other plans. That still is in operation. I do a couple of tours a year. Actually really excited about next year. Next year  I’m going to be doing basically one tour that’s going to happen in September and it’s going to be 11 days. It’s going to be an immersive, extremely immersive, one of a kind cannabis in depth experience from San Francisco to Oakland all the way up to Humboldt.

TG Branfalt: Put me on that list.

Brian Applegarth: Yeah, I’m excited, man. I just finished baking out the itinerary and I’m getting some feedback from some people. Then I’m going to release it into the wild. It’s going to be limited to 24 people and it’s going to be extremely specialized and immersive. It’s something that I’m excited about doing… Of course, I’m going to continue the relationships with my senior retirement communities that I’ve been servicing and taking on tours. That’s really where Emerald Country Tours kind of pivoted into was it became really obvious to me that the most important and the most rewarding tours that I operated in the first year, year and a half of business there was with the active adult retirement communities. I’m going to be doing those as well.

TG Branfalt: I mean, are you getting a lot of that population? We read some studies that suggest that the baby boomer generation is coming around a little bit when it comes to use when states legalize. Is that something that you experience out there?

Brian Applegarth: Yeah, I mean the baby boomers are like, they’re coming on real strong. That’s one of the highest demographics of growth and the trajectory is just speeding up because people are finding quality of life is improving and they’re really curious about cannabis. As stigma dies off, more and more of them are tipping in. They also have resources, a lot of them. When you look at dispensaries and the people that have the money to spend on it, the baby boomers are right in there. I love that whole demographic. It’s one of my favorites because you can really change minds once you educate them about the science behind the endocannabinoid system and you explain this whole new world. I enjoy watching somebody who is in their 60s or older have their eyes opened about how misled they were with cannabis and hemp over the last 80, 90 years.

TG Branfalt: How often does that happen for you? What percentage of people are sort of… I don’t want to call them novices but maybe don’t know as much but are getting their feet wet through these tours and these experiences.

Brian Applegarth: Man, that’s like my world. I found that my role in this whole story of cannabis and the movement that’s happening and the legalization and navigating that is I’m really an educator and a bridge-builder. I spend a lot of my time educating people that are new, whether it’s government, whether it’s the fire department, whether it’s hotels that have been in operation for over a hundred years. I constantly find myself as an educator that’s helping normalize and just make sense of this opportunity without being pushy about it and fully recognizing that not everybody smokes and wants vaping on their property, and that’s okay. I think the more people that are able to understand and use cannabis, the better the world will be. That’s my ethos. If that’s a drinkable or a microdosing edible or if that’s a CBD topical for somebody’s pain, all of those are wins in my book. I just stay in that lane. To answer your question, pretty much every day my work revolves around people that are newer to cannabis.

TG Branfalt: That’s what I appreciate about you. You’re going into this meeting with regulators, you’ve been talking to regulators, lawmakers for a few years now. What’s been the evolution there? What’s been your experience working with people who make the policies?

Brian Applegarth: It’s a big negotiation and the people that are doing the real heavy lifting are the ones that are embedded in the supply chain. Cultivation all the way to retail. When you look at distribution, manufacturing, the testing tier, and all the different benchmarks of getting a product to market, it’s going to be an ongoing negotiation for the foreseeable future because, well, there’s a couple of reasons. One is the stigma is not helping and a lot of people are still brainwashed about how cannabis was a drug and it’s like the devil’s lettuce and all this nonsense. Then you have obviously money and influence becoming primary values with a lot of people. I’m not talking about government here necessarily, I’m talking about the capitalistic, consumer-driven, regulated environment of California and the United States in general where when you get investors and it tips in as a white industry or an above board legal industry, the game board shifts, right?

It’s like you had the elicit, the underground market, then you had the gray market where it was medical, and now you have the aboveboard market. It’s like three different game boards. You got to really stay persistent in advocating for legislation that is favorable and that encourages sustainable, smart, and most importantly, safe for the public operations or landscape for the industry. There’s a lot of battles being fought and a lot of it comes down to tax dollars. It comes down to permits. You know, in Northern California you have this whole culture that’s been living off the grid that hasn’t been part of the matrix that most of the world lives in with licensing and computers and technology and cellphone signals and all the different things. You have these people that have all the brain thrust up in the Northern California in the Emerald triangle and there’s such a gap in what the skills are. There’s not one is better than the other like it’s just two different worlds.

Watching that unfold is like a case study in itself. That’s how I really see cannabis as like this cannabis being legalized in California, it is a case study on capitalism. It’s a case study on permitting and licensing. It’s a case study on local municipality versus state versus federal. It’s a clash of cultures and values. A lot of people think at this point it’s kind of good versus evil. There’s some negotiation happening on how that industry is going to shake out and who’s going to hold the influence and the power. It’s a lot of big ideas and big conversations that are going on. I think time will tell. I’m excited to be a part of it and to be able to advocate in my own way for what I think it could and should be for its highest purpose.

TG Branfalt: You mentioned the locality, I know that quite a few, a large number of California municipalities have banned cannabis operations within their city limits. How much of an impact has that had, if at all, on tourism? Is the tourism part of cannabis doing just fine in California without these swaths?

Brian Applegarth: Yeah, no, I mean, that’s good question. I think it depends on the municipality and the location that we’re talking about, the destination. There are certain destinations in California that are absolutely relevant when it comes to tourists and tourism. I mean at this point, anybody who’s not embracing tourism, I feel like they’re missing out on an opportunity to drive commerce and dollars into their market, which means tax money for the local government to be able to use to improve the community. I think over time it will roll out. I think that there’s going to be people that are leading, which there is, it’s Mendocino, Palm Springs, West Hollywood, San Francisco, Oakland, Santa Cruz are kind of the ones that are really leading the space. Sonoma County is getting there. I think once these leader markets have a bit more information and have gone out and really establish themselves and proven the model, you’ll see the next wave of destinations tip in.

I mean, the other point to this, TG, is that there’s a very vibrant black market still. Even though these municipalities think that they’re saying we’re not going to regulate cannabis, there’s probably the exact same activity that was happening before regulation is still happening on the black market and their municipality and that’s just a fact. At the end of the day it comes down to, do you want to be part of the future? If so, when? I’m not saying everybody should do it now. Every municipality has its own culture and I really respect local communities to make their own decisions and create coalitions to move forward together. What does that look like? I think that the conversation and the education are vital right now to continue the conversation moving forward and to be a resource for people.

TG Branfalt: I’d love to talk about this with you for another, keep this conversation moving forward for another hour or so. It’s always great to have you on, but we’re just about out of time. Where can people find out more about you and your various endeavors?

Brian Applegarth: Yeah. Great. Thanks for asking. My website is Brian with an I, Brian Applegarth, A-P-P-L-E-G-A-R-T-H, so that’s brianapplegarth.com. My email is ba@brianapplegarth.com. You can find me on LinkedIn and I’d love to connect and hear from anybody that has questions. It’d be great.

TG Branfalt: Well again, man, I really appreciate having you. Hopefully we don’t wait another two years. Hopefully the next time I see you, I’ll require your services as a tour guide. I think that’d be great. Again, thanks for coming on and just letting me explore that wealth of knowledge that you are, man. Appreciate it.

Brian Applegarth: Thanks TG. I always enjoy, dude. You’re welcome anytime in California. Come on out here.

TG Branfalt: You can find more episodes of the ganjapreneur.com podcast in the podcast section of ganjapreneur.com and in the Apple iTunes store. On the ganjapreneur.com website, you’ll find the latest cannabis news and cannabis jobs updated daily, along with transcripts of this podcast. You can also download the ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Trim Media House. I’ve been your host, TG Branfalt.

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Cannabis Firm Founders Accused of Misappropriating $14M

2/20/2020

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The founders of Canadian licensed producer Green Relief Inc. are accused of misappropriating about $14 million from the company for personal use over the course of six years, the Financial Post reports. The allegations came during a private shareholders’ meeting last month which was recorded and sent to the post.

In the video, company executives detail transactions they believe were made by the founders – Warren and Lyn Bravo – which have led to financial distress for the firm. In the video, filmed in January, Green Relief’s current Chief Executive Dr. Neilank Jha suggested the company only had enough funds to survive until February; however, he told the Post the firm was still liquid and would be for the “next few months.”

Jha succeeded Warren Bravo in March 2019 after Bravo stepped down as CEO that February.

“As CEO, my goal is not to seek justice. My goal is not to worry about what people have done in the past. My goal is to advance Green Relief and protect your investments.” – Jha, during a January 14, 2020 stockholder’s meeting, via the Post

An internal investigation by Green Relief found that since 2013 the company had received $59.2 million in funding from, primarily, shareholders and had spent $45.1 million for long and short-term expenses — a discrepancy of $14.1 million.

In an email to the Post, Jha, whose company Bodhi Research & Development was acquired by Green Relief in early 2019, said he was told that $200,000 in funds had been misappropriated on his first day and that he once wired the company $150,000 of his own money to keep it afloat.

In the video, Chief Financial Officer Stephen Massel alleged that the Bravos used fake invoices and billed Green Relief. They accuse the couple of using $1.3 million for the construction of a private home and discharging the mortgage on a property owned by Lyn, using $900,000 for credit card bills and leasing vehicles and another $2.9 million for personal investments, and spending $3.7 million to support their other businesses.

In an email to the Post, the Bravos’ lawyer John Hammond said they “vehemently deny” the allegations, describing them as “false, without merit, and constitute a malicious defamation” against the Bravos. In court documents related to an attempt by Green Relief to bar Lyn from the property, she claims that the funds for the mortgage were used “at the express request and direction of Green Relief, and with the full knowledge of its shareholders, directors and officers,” the report says, and that the new home was an “integral part of Green Relief’s plan for future offices” and was done with the company’s knowledge and support. She claims she is still owed some $100,000 she loaned the company to cover payroll in 2018.

Green Relief received significant media attention in late 2018 and early 2019 for using a pesticide-free process in an underground aquaponic farm to grow cannabis. Aquaponics is a process that uses aquatic animals and hydroponics to grow plants.

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Budtenders Unionize In Canada

2/20/2020

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Budtenders at Clarity Cannabis have joined the United Food and Commercial Workers union, the first cannabis workers at a private dispensary in Canada to organize. The budtenders at the British Columbia-based dispensary chose to join UFCW 1518 “in an effort to address outstanding concerns, including fair wages, a respectful workplace, safety and security on the job, and education and training opportunities,” the organization said in a press release.

Emma Riderelli, a Clarity Cannabis budtender, said she joined the union due to her position’s low pay and the lack of educational opportunities offered by her employer. Her co-worker Adelaide Wilder said that while she is “passionate” about her work she “couldn’t afford to keep doing it” without joining a union.

“Budtending requires research and experience to do well, we’d like to look at it as a long-term opportunity. Joining a union is going to help us make that a reality.” – Adelaide, in a statement

Kim Novak, president of UFCW 1518, said the union was “proud to be the first … in Canada to organize private dispensaries.”

“The cannabis industry is an emerging sector and it’s important to build worker power so that budtenders, as well as other cannabis workers, have a strong voice,” she said in a statement. “That is our union’s commitment.”

Two U.S. states – New York and California – require licensed cannabis companies to sign a labor peace agreement with workers. In Illinois, the scoring system for licenses provides higher marks for firms that maintain labor peace agreements. In the U.S., the UFCW launched a Cannabis Workers Rising campaign and represent “tens of thousands of workers across multiple states,” its website says.

The UFCW Local 1518 represents more than 24,000 retail, grocery, health, hospitality, grocery, industrial and professional sectors throughout British Columbia.

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West Virginia Removes Flower from Medical Cannabis Bill

2/20/2020

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West Virginia’s Senate Judiciary Committee has advanced a stripped-down version of a medical cannabis reform bill that would have allowed patients to grow their own medicine and possess flower; however, those provisions were removed by the committee, according to CNHI News.

In its amended form, the measure would allow program reciprocity for patients, rescind residency requirements for would-be industry operators, change how much in fees operators will pay, and create industry-specific employee licensing.

Under the measure, initial permit fees will cover all locations rather than a separate fee for each location; however, renewal fees will no longer cover all locations.

The bill had originally called for patients to be able to cultivate 12 plants and 12 seedlings and possess more than 4 ounces of flower per patient – but both were struck down by the committee. Under the current law – which passed in 2017 but has yet to be implemented – patients can only possess tinctures, liquids, capsules, patches, or vaporize cannabis.

The committee also advanced a measure requiring that minors caught possessing cannabis – and their parents – attend classes on the dangers of the plant and another that would cap possession penalties at $1,000 with no jail time.

This is the second time since 2018 that a bill to allow patients to access flower has been fought back by legislative leaders. The last attempt was part of broader reforms that included statewide decriminalization, cannabis home delivery, which were both removed by the Senate before the bill stalled at the end of that year’s session.

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Native Roots Dispensaries Switches All Stores to Cova Retail Platform

2/20/2020

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DENVER, CO FEBRUARY 20, 2020 – In a move set to advance store operations and support the company’s aggressive growth, Native Roots, one of the nation’s largest and most successful vertically integrated cannabis operators, has partnered with Cova Software, North America’s leading cannabis retail point of sale (POS) provider. Native Roots has moved all 19 of its Colorado dispensaries and 3 Garden Variety stores in Canada to the Cova retail platform, the only cannabis POS available in both countries.

Ryan Brown, CEO of Native Roots, chose Cova only after a thorough evaluation. “We put Cova through quite a set of trials to test their POS, digital retail technology, support, and training,” Brown said. “They delivered so well on our needs, and so impressed us with their responsive enterprise-level capabilities, we’re confident it’s the perfect fit for Native Roots.”

Native Roots has established itself as a premier brand and now faces the logistical challenges of high-volume sales and high customer expectations. Cova’s refined tech infrastructure, scalable feature set, and mature API are an essential upgrade for the dispensary chain. The company will leverage Cova’s enterprise capabilities to replace deficiencies in their previous system and better manage sales and inventory across all locations.

“We needed a dependable POS that offered global management of twenty plus stores,” said Alex Bitz, IT Director at Native Roots. “Cova allows us to set up products and inventory in one place. We are impressed with the speed at which the system can work to set up our entire product inventory within a matter of minutes. We also needed a solution that could provide data that was on-pointe. Cova’s API access lets us pull what we want, how we want, and where we want.”

Another feature that lends a competitive advantage is Cova’s wireless functionality. Native Roots can now leverage the benefits of mobile tablet-based sales tools, adding flexibility to customer experience concepts going forward. Budtenders can walk around stores to engage and educate customers on the sales floor. Because Cova separates the front-end budtender sales tools from the backend system, sales staff now have all the information and streamlined functionality they need to complete significantly faster transactions.

“The overall speed at which we can create a transaction is phenomenal,” said Bitz.

Cova’s cannabis retail platform is the fastest growing in the industry, used by 65% of all private stores in Canada, and hundreds of dispensaries in markets across the U.S. The move by Native Roots underscores the value of the system’s built-in scalability.

“We were ecstatic to earn Native Roots’ business across Colorado, and to help their move into Canada,” said Gary Cohen, CEO of Cova. “We built our platform to help cannabis retailers of all sizes, from single stores to expansive operations with a hundred locations. Native Roots is an incredible success story, and their trust in Cova validates a lot of hard work and investment in scalable solutions. Because we share the same ambition to move the industry forward and raise the bar for customer experience, it also inspires us to keep working and stay ahead of the curve.”

About Cova

Cova is an award-winning POS and Inventory Management solution designed to streamline cannabis retail. A compliance-first company, Cova meets all system requirements in every market served and constantly adapts to changing rules and regulations. In addition to automated compliance, Cova offers an intuitive, user-friendly design and lightning-fast transaction time. Its technology platform currently powers stores of all sizes with virtually no downtime, even on 4/20, making it the most robust and reliable cannabis POS system available. Headquartered in Denver, CO, and Vancouver, BC, Cova’s team spans North America, including California, Oklahoma, Illinois, Michigan, and Missouri. Learn more at www.covasoftware.com.

About Native Roots

Native Roots Cannabis Co. is Colorado’s largest vertically integrated cannabis operator. With 19 locations serving both adult-use populations as well as medical cannabis patients, Native Roots has a large state-of-the-art cannabis cultivation and manufacturing facility in Denver to meet demand. In addition, they operate four Native Roots Wellness shops, selling hemp products which don’t contain THC. Native Roots has over a decade of experience in providing cannabis to consumers and has won recognition for its sustainable business practices, retail store design, and high-quality products.

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Cannabis Sales Top $1.75 Billion In Colorado

2/19/2020

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Cannabis sales in Colorado reached $1.75 billion last year, a new record that netted more than $302.4 million in state tax revenue, according to a Westword report. The previous record was $1.55 billion in 2018.

The sales represent a 13 percent increase from 2018; sales increased just 2.5 percent year-over-year from 2017 to 2018, according to state Department of Revenue figures outlined by CNN.

Tom Adams, managing director at cannabis market research firm BDS Analytics, attributed the slow growth rates in 2017 to 2018 to drops in flower prices but called the 2019 turnaround “a bullish indicator that price compression can’t keep the popularity of legal cannabis down” in an interview with CNN. A recent report from the firm found an increase in the number of adults who reported using cannabis over a six-month period.

Truman Bradley, executive director of the Marijuana Industry Group, said that many people in the state are migrating to the legal market.

“As reefer madness goes away, as the stigmatism of cannabis reduces and people come over to the regulated market, I would expect that trend to continue.” – Bradley, to the Denver Post

In 2018, there was a 3 percent increase in recreational cannabis licenses in the state, while medical licenses decreased 8 percent.

According to a Colorado Sun report, the state’s cannabis-derived tax revenues are mostly split between human services, public health and environment, education, and local affairs. As of 2019, one-third of those revenues were still undesignated.

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High Times’ Spannabis Announcement Questioned After Organizers Deny Affiliation

2/19/2020

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Following the announcement last week of the first-ever High Times Cannabis Cup in Spain, organizers of Spannabis — the world-famous cannabis trade show based in Barcelona — have disputed partnership claims made by High Times.

Specifically, High Times said that winners of the Cannabis Cup Spain would be announced on the main stage at Spannabis 2020. However, an official statement by Feria del Cáñamo, the group behind Spannabis, disputed that claim.

“Spannabis denies any kind of relationship with High Times,” the event’s official Twitter handle posted. The tweet also included an image labeling the High Times event as the “Fake High Times Cannabis Cup Spain.” While Feria del Cáñamo’s response was released on Friday, High Times’ original announcement remains in place.

The public dispute could have been fueled somewhat by an acquisition deal between High Times and Spannabis that was first announced last January but eventually fell through.

According to the High Times website, people who want to compete in the Cup must submit their products sometime during the product intake period from March 5-8. Spannabis will take place this year on March 13-15 in Barcelona.

 

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Priests Promote Legalization In Connecticut

2/19/2020

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A group of Connecticut clergy members rallied at the state Capitol building yesterday in support of legislation to legalize and regulate adult-use cannabis, according to a Regulate CT press release.

“Prohibition does not work. Legalization will regulate the market and bring sorely needed revenue to the state budget, reduce needless arrests, especially for people of color, and provide jobs in communities ravaged by the failed war on drugs.” — Rev. Alexander Sharp, executive director of Clergy for a New Drug Policy, in a statement

Connecticut lawmakers are currently considering a legalization bill pitched by Gov. Ned Lamont (D) that, if approved, would legalize the possession of up to 1.5 ounces, establish a licensing system for cannabis cultivators and operators, and set a weight-based taxation system for the new industry. The bill would also include social equity licensing caveats and the expungement of cannabis possession convictions for up to four ounces.

Under the governor’s proposal, the Department of Consumer Protection would be tasked with determining by 2023 whether or not to allow cannabis home grows.

Participating clergy members at Tuesday’s event included: Rev. Tommie Jackson of Rehoboth Fellowship Church (Stamford); Rev. Alexander Sharp of Clergy for a New Drug Policy; Rev. Stephen W. Camp of Faith Congregational Church (Hartford); Rev. Simon Castillo of Good Shepherd Christian Church (Bridgeport); Rev. Zoey Dominguez of Rehoboth Fellowship Church (Stamford); Rev. Dr. Lindsay E. Curtis of Grace Baptist Church (Norwalk); Rev. Lawrence Hunter of Grace Baptist (Waterbury); Bishop William Marshall, pastor of City of Life Worship and Deliverance Center (Bridgeport and Waterbury); Bishop Robert L. Middleton, Jr., senior pastor of New Beginnings Ministries, Inc. (Hamden); Rev. Edwin Pérez of United Church on the Green/Apostolic Fellowship International Revival Ministries (New Haven); and Rev. Charlie L. Stallworth of East End Baptist Tabernacle Church (Bridgeport). The group was also joined by gospel choir “Brothers in Christ” of Cross Street AME Zion Church in Middletown.

A strong 65 percent majority of Connecticut residents support cannabis legalization, according to a January 2020 GQR poll.

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Georgia Bill Would Require Paperwork to Possess Hemp

2/19/2020

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A bill in Georgia that would allow police to arrest people for transporting hemp without proper paperwork passed the House Agriculture Committee on Tuesday, the Atlanta Journal-Constitution reports. The bill is aimed at allowing police to continue making arrests for cannabis possession in the wake of federal and state hemp legalization.

Law enforcement officials in Gwinnet and Cobb counties said last year that they would suspend making arrests for low-level possession after the state legalized hemp, citing the lack of testing facilities that could determine the amount of THC present. Those levels are required to differentiate legal industrial hemp from illegal cannabis with THC levels over 0.3 percent.

Violators of the new hemp transport law would face up to a year in jail and $1,000 fine for the possession of less than an ounce – the same penalties for misdemeanor cannabis possession.

Pete Skandalakis, the executive director for the Prosecuting Attorneys’ Council of Georgia, told the AJC that the Legislature didn’t intend to decriminalize cannabis when it legalized hemp last year.

Mazie Lynn Causey, a lobbyist for the Georgia Association of Criminal Defense Lawyers, said the measure would, effectively, criminalize a legal substance. Republican state Rep. Scot Turner also opposed the measure, arguing the bill would allow police to seize the assets of people in possession of a legal substance.

“We’re treating it as if it’s a criminal product. We have the ability to do a test. We’re choosing not to. Why aren’t we just taking the steps necessary to establish the criminal behavior on a product that’s actually illegal?” – Turner, to the AJC

Hemp-derived CBD products are currently the only medical cannabis products available to Georgia patients but they must still be acquired out-of-state, despite the governor approving a measure last April to allow for in-state production.

The hemp bill still needs to be approved by both chambers of the Legislature.

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New Mexico to Close Medical Cannabis ID Loophole

2/19/2020

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New Mexico lawmakers have approved a bill to end the issuance of state medical cannabis cards for out-of-state patients, the Associated Press reports. Officials had reportedly already been withholding the cards since last year, despite a court order telling the Department of Health to issue the cards following previously-approved medical cannabis reforms.

After the new law took effect, state attorneys argued that the change allowing out-of-state residents to access New Mexico’s program was a drafting error and not designed to allow non-residents to obtain medical cannabis cards in the state. Officials argued that, if allowed, the changes would encourage cannabis transport across state lines, which is illegal under state and federal law.

Following the court’s ruling, the Health Department did issue ID cards to three individuals who were included in the lawsuit against the state.

The law will not change the state’s reciprocity policies that allow patients with out-of-state medical cannabis cards to access New Mexico’s program. All of New Mexico’s border states have medical cannabis programs but in Texas, only low-THC products are allowed.

The 2019 reforms also led to some confusion for individuals in the custody of the Corrections Department, namely inmates and those awaiting trial. The law includes language stating that persons “serving a period of probation or parole or who is in the custody or under the supervision of the state or a local government pending trial as part of a community supervision program shall not be penalized for conduct” allowed under the state’s medical cannabis law. The new law does not clarify these policies.

The measure still requires the signature of Gov. Michelle Lujan Grisham (D) before they become law but she has expressed support for closing the loophole and is expected to sign the legislation.

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NFL Considers Relaxed Cannabis Policy

2/18/2020

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The National Football League is considering drastically updating its cannabis policies in the new Collective Bargaining Agreement between the league and the NFL Players’ Association, according to NBC Sports’ Pro Football Talk. Under the potential changes, the league would suspend a player for cannabis use “only in the event of extreme and repeated disregard of the policy or significant violations of applicable law regarding the possession and use of marijuana,” the report says.

The relaxed policy would also close the league’s nearly 4-month testing window for cannabis to just two weeks. Currently, the testing opens on April 20 and players may be tested until early August. This would reduce the amount of time each year that players would have to refrain from cannabis use, if they aren’t already in the protocols.

The new rules would effectively ‘decriminalize’ cannabis use in the NFL, which has the harshest drug-testing policies of any professional U.S. sports organization. The XFL – a spring football league founded by World Wrestling Entertainment Chairman Vince McMahon which launched earlier this month – doesn’t include cannabis in its drug-testing protocols.

In December, Major League Baseball indicated it was considering removing cannabis from the banned substance list for minor league players who are not on a team’s 40-man roster; players on the 40-man roster are not tested for cannabis.

The National Hockey League – which includes many Canadian teams – does not penalize players for cannabis use. Canada legalized cannabis in 2018.

The National Basketball Association bans cannabis use by players – which can lead to a suspension and fine up to $35,000 – but the league doesn’t test during its offseason.

The Pro Golf Association last year suspended two players within 12 weeks for cannabis use.

Late last year Dallas Cowboys owner Jerry Jones suggested the league’s cannabis policies would be adjusted in the upcoming CBA agreement.

“I think the world is sensitive to the issue regarding marijuana. It’s also an issue contemporarily we’re excited about being in step with the social and legal scene as it goes forward,” he told CBS Sports. “And, so, we not only have the interest of competitiveness in mind when it comes to any type of substance, we have the issue of the law and we have the issue of the society focus on it. All of that does receive attention when you’re discussing this area with players.”

It’s unclear whether the new policies would take effect during the upcoming season. If the new CBA is approved by March 18, it would be in place for the 2021 season; however, the league could decide to implement the new policy this season as part of the negotiations.

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Aluminum Cans May Reduce THC in Infused Beverages

2/18/2020

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In 2020, Canadians rejoiced that they would finally be able to purchase cannabis edibles at adult-use dispensaries and producers were racing to have the most desirable product on the market. In the fall of 2019, Canopy Growth announced its ‘2.0 portfolio’ which included 13 cannabis-infused drinks but, as we approach the spring of 2020, consumers are still waiting for the products to be made available for sale. 

With licensed Canadian cannabis companies backed by Big Alcohol brands like Constellation Brands, Molson Coors, and Anheuser-Busch InBev, it is surprising that more infused beverages haven’t made it to market. But, according to a recent Yahoo Finance report, it appears that aluminum cans can actually ruin the potency of infused cannabis beverages, which could explain the delay.  

Epoxy, vinyl, acrylic, polyester, and oleoresin are all common coatings used as an inner lining for aluminum cans. This is due to the typically corrosive ingredients in beverages like energy drinks and colas; they’re also handy in beer cans to smooth the inner lining and keep carbon dioxide from escaping. However, the same inner lining that makes it possible to can soda, beer, and even vegetables is causing a major issue in cannabis products.

In cannabis beverages, nanoemulsion methods are used to break down oily cannabinoids into particles small enough that they will suspend in a beverage for equal dosing and product uniformity. This process will change the size of the molecule but the same original quantity of THC will remain.

Chemistry Ph.D. Harold Han, the founder and chief science officer of Vertsoa, told Yahoo Finance that he first noticed potency retention issues when working with Northern California beer subsidiary Lagunitas as they moved their Hi-Fi Hops cannabis drinks from cans to glass bottles. They decided to test can liners against two types of emulsions and noticed that both incurred huge potency losses. The theory is that nanodroplets of THC stuck to the inside liner of the can instead of being delivered with the can’s liquid contents.

This issue is a mammoth hurdle on the quest of bringing infused beverages to the market, especially with antsy investors behind the scene. Though the Canadian infused beverage market is projected to be worth $529 million annually, companies are focused on finding an aluminum solution instead of glass bottling, which is more expensive. The solution is not yet clear, but the aluminum can industry is unlikely to accommodate the cannabis beverage industry by dropping the liners. 

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Oregon Police Investigating Cannabis-Focused Burglary Ring

2/18/2020

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Police in Oregon are investigating a burglary ring that targeted cannabis businesses, the Oregonian reports. As part of the investigation, Portland and Salem police seized $33,000 in cash, 30 pounds of cannabis, six pounds of hash oil, 16 firearms, and burglary tools, along with clothing and other evidence from the victimized businesses, the report says.

Portland Police Assistant Chief Andrew Sherer said on Twitter that one arrest had been made in the case and there were “more to follow.” Officials have not released any other information, citing the ongoing investigation.

In a highly publicized 2019 case, Shadowbox Farms, located in Southeast Portland, was burglarized for about $1 million in products. No arrest has been made in that case.

By and large, however, cannabis dispensaries do not lead to an uptick in crime in its neighborhood. A 2019 study published in Regional Science and Urban Economics actually found dispensaries reduce crime in their neighborhoods by about 19 percent, or 17 crimes per month per 10,000 residents. In 2018, a RAND-funded study published by the Institute of Labor Economics found “no significant impact of dispensaries on violent crime” in any of their models. They also found a 5.1 percent to 6.3 percent reduction in property crimes in counties that allowed dispensaries.

A University of Colorado at Denver study published last year found a slight uptick in crime around dispensaries that declines over time. In 2019, Denver, Colorado dispensaries were the target of five robberies and 122 burglaries, which was a three-year high. Denver Police believe as many as six of those robberies and break-ins are linked.

Cannabis businesses are often targeted because of the cash-only nature of the industry due to federal prohibition, which prevents cannabusinesses from accessing simple financial services.

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Expungement Bills Introduced in Rhode Island

2/18/2020

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Lawmakers in Rhode Island have introduced bills aimed at expunging criminal records related to possession of cannabis and other drugs, the Providence Journal reports. One measure (H7412) would automatically expunge cannabis crimes that are now legal under the state’s decriminalization policies, while the other (H7901) would seal simple possession charges for all controlled substances five years after the completion of the sentence and waive the court fee associated with expunging records.

During a House Judiciary Committee hearing last week, State Rep. Anastasia Williams (D) called the cannabis crime expungement measure “self-explanatory.” She pointed out that drug laws disproportionately targeted minorities and perpetuated the cycle of poverty and that people with cannabis-related criminal records – especially minorities – have trouble finding jobs and houses.

“Marijuana, medical or not, is a booming industry, and individuals are going to capitalize more on it soon with the additional six [medical cannabis dispensary] licenses. And just imagine when recreational marijuana becomes legal. So just think for a minute about the individuals who are still incarcerated [or who] have spent time in jail for possession, selling, using, carrying marijuana. …Their sentence doesn’t end when they are released.” – Williams, 2/11/20 House Judiciary Committee Meeting, via the Journal

The bill sponsored by Rep. Jason Knight (D) would expunge charges after five years “for any person convicted of an offense constituting simple possession of a controlled substance,” according to the bill text. The state already allows for broad expungement of some non-violent crimes under its ‘First-Time Offender’ program.

“The reason why I put it in is because I think we have changing attitudes around controlled substances.” Said Knight, a criminal defense attorney, to the Journal. “No one I know believes that it is a moral failing to get charged with possession of a controlled substance.”

Attorney General Peter Neronha’s Legislative Lobbyist indicated the AG “is conceptually in support″ of Knight’s bill.

Rhode Island legalized medical cannabis in 2006, the 11th state to do so. In January, Democratic Gov. Gina Raimondo called for state-wide legalization. Some lawmakers were optimistic that the state was going to pass the reforms last year but the legislature didn’t take any action on the issue.

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Adult-Use Legalization Proposed in Croatia

2/18/2020

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Mirela Holy, a Croatian politician and former leader of the center-left Croatian Sustainable Development party, has proposed adult-use cannabis legalization in the face of rapid global reforms and shifting public opinion, Total Croatia News reports.

The bill was first released last week and will be debated in the public sphere before an official parliamentary debate.

”We propose a state agency hybrid (state/private) model to maintain the high quality [of the product] in the market. When it comes to the use of cannabis for recreational purposes, the bill would allow every adult to grow as many as nine female plants with high THC content for their personal needs.” — Mirela Holy, via RTL Direkt

The bill would also establish hemp industry opportunities in the country.

Minor cannabis possession is already decriminalized in Croatia. Growing and/or selling the plant, however, remain felonies punishable by a 3-year minimum mandatory prison sentence.

“When I started talking about this a few years ago, reactions were very negative, but things have changed,” Holy said. “People need to be educated first and then they will change their attitudes. The addictive potential [of cannabis] is much less than the addictive potential of nicotine or alcohol. And, to my knowledge, nobody has ever died from an overdose of natural cannabis.”

Croatia passed national medical cannabis reforms in 2015, legalizing the plant as a treatment option for severe illnesses including cancer, multiple sclerosis, and AIDS. If the latest reforms succeed, Croatia would become the first member nation of the European Union to fully legalize cannabis.

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Study: Cannabis Makes People More Susceptible to False Memories

2/17/2020

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People under the influence of cannabis are more susceptible to false memories, according to a study published on February 10 in the Proceedings of the National Academy of Sciences of the United States of America. The researchers say the study’s results have “implications for police, legal professionals, and policymakers with regard to the treatment of cannabis-intoxicated witnesses and suspects and the validity of their statements.”

The researchers used three different methods in the placebo-controlled, double-blind test, including “associative word lists and two misinformation tasks using virtual reality.”

“Across all methods, we found evidence for enhanced false-memory effects in intoxicated participants. Specifically, intoxicated participants showed higher false recognition in the associative word-list task both at immediate and delayed test than controls.” — Cannabis increases susceptibility to false memory, 2/10/20, PNAS

The false memory effects were mostly restricted to the acute-intoxication phase, and cannabis seemed to “increase false-memory proneness, with decreasing strength of association between an event and a test item.”

Elizabeth Loftus, one of the study’s co-authors and a distinguished professor of psychological science and law at the University of California Irvine School of Law, suggested that the results of the study might lead to consideration of individuals who are intoxicated by cannabis as ‘vulnerable’ witnesses. In an interview with Live Science, Loftus explained that law enforcement “need to take extra care” with vulnerable witnesses, which include children and people with mental disabilities.   

Lilian Kloft, a graduate student in the Department of Neuropsychology and Psychopharmacology at Maastricht University in the Netherlands and the study’s lead author, said that cannabis-intoxicated individuals “show the highest risk for false memories for things or details that are poorly related to the original event” and have a “‘yes’ bias when they are uncertain about their memory, which makes them sort of random and unreliable responders.”  

Kloft said more research on other drugs and drug combinations are “urgently needed.”

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Virginia Approves Cannabis Decriminalization

2/17/2020

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The Virginia Legislature approved broad cannabis decriminalization legislation last week but lawmakers have no plans to pass recreational legalization this session. The measure passed by both the Senate and House of Delegates reduces the penalty for possession up to a half-ounce to $25. The current law calls for a $500 fine and 30 days in jail.

The bill also requires that all previous convictions and records for simple possession be sealed and provisions requiring substance abuse screening and loss of driving privileges for juveniles caught possessing any amount of cannabis.    

Democratic Gov. Ralph Northam called for cannabis reforms on the campaign trail – and reiterated his support for legalization last January – and is expected to sign the bill into law.

However, despite the governor’s support and both chambers of the Legislature being controlled by Democrats, House Majority Leader Charniele Herring indicated that lawmakers would not consider adult-use legalization legislation this year.    

“To legalize it now would not be good, but this hopefully would take us one step closer to reducing the arrest and jailing of people for simple possession.” — Herring, via Capital News Service

A 2017 study by the Virginia Crime Commission found that from 2007 to 2016, African Americans comprised nearly half of all arrests for first-time cannabis possession, despite comprising 20 percent of the state’s population. The commission suggested that 10,000 arrests could be prevented by decriminalizing possession.

Cannabis use and possession by adults is legalized in nearby Washington, D.C. but the federal government – which provides the budget for the District – prevents the city from implementing a taxed and regulated market.

Following the passage of the reforms, Virginia Attorney General Mark Herring (no relation to the house majority leader) said in a statement that they were “a step in the right direction” but cautioned that “the work is not done.” Herring has been a strong proponent for cannabis reforms in the state, including adult-use legalization.

According to a WAMU report, the Senate last week also advanced a measure allowing individuals to possess cannabis if they are a state-registered qualified patient and another bill to allow for broader expungement rules. Both of those bills still need House approval. 

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Cannabis Companies Sponsor 2/3 of Adoptable Colorado Highways

2/17/2020

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About two-thirds of the roads sponsored by Clean Colorado’s Sponsor a Highway program are funded by cannabis companies, according to Adopt a Highway Maintenance Corporation data outlined by the Denver Post. The 51 cannabis dispensaries, growers, manufacturers, and processors in the Adopt a Highway program sponsor about 198 miles, despite representing less than half of all organizations that participate in the program, according to the report. 

Many of the highways sponsored by cannabis firms have signage near exits — a novel loophole in a state that has banned cannabis advertising on, television, radio, social media, and print, unless they can prove the audience is 21-or-older. Under Department of Transportation rules, the Sponsor a Highway signs are not meant to be an advertising medium and, therefore, are not included in cannabis advertising rules.

Last year lawmakers approved a bill that allows cannabis companies to use outdoor advertising, such as billboards, so long as they are 500 feet away from schools, playgrounds, and places of worship, and comply with local ordinances.  

Nico Pento, government affairs director for Terrapin Care Station, called the signs a “loophole that was overlooked.” The company sponsors six miles on two interstates; each costs $400 to $455 per month. 

According to the Adopt a Highway Maintenance Corporation, general service companies – such as ad agencies, real estate, plumbing –represent 13 percent of all miles sponsored under the Clean Colorado program followed by retail (8 percent), restaurants (4 percent), and casinos and hotels (3 percent).

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Washington Home Grow Proposal Stalls for Another Year

2/17/2020

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The Washington State legislature has fallen short this session in its effort to pass a home grow bill that would allow adults aged 21 or older to grow six plants at home.

The Senate version of the bill, SB 5155, did not get a hearing, but it’s companion bill HB 1131 moved forward in the process further than other attempts. Despite a large turn out in support of the bill, it finally stalled in House Appropriations, one Executive Session away from a hearing on the House floor. John Kingsbury, a home grow activist in the state, said they were given various reasons why the bill did not get a final up or down vote, including “they took up too much time” and “they didn’t’ have the votes to pass it.” 

“The chair said he didn’t have enough votes to pass the bill, but by my headcount he did. I hope this is not the reason we didn’t get a hearing, but it makes me wonder. Another reason the chair gave was he thought the Feds would move in, but we know D.C. allows home grows, just look around at the other adult-use states that have it.” — John Kingsbury, in an emailed statement to Ganjapreneur

Washington and Illinois are the only adult-use states that do not allow citizens over 21 to grow at home. Plant counts vary between Oregon allowing four and Michigan permitting 12 plants.  If passed, the Washington proposal would have allowed six plants per adult with a maximum of 15 per household, and home growers could have possessed up to one pound at a time.

Kingsbury said he is surprised and disappointed the bill stalled, but activists will be back next year.

“Every year we learn and make new connections in Olympia. This year the legal industry rallied, showed up and lobbied, which helped a lot,” he said. “2021 is looking good to finally bring home grows to Washington.”

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Los Angeles County Expunges 66k Cannabis Convictions

2/14/2020

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Los Angeles County, California is set to expunge 66,000 cannabis-related convictions, the Los Angeles Times reports. The action includes 62,000 felony convictions and 4,000 misdemeanor convictions dating back to 1961.

District Attorney Jackie Lacey, who filed the motion to erase the convictions with the County Superior Court, said her office went beyond what the cannabis legalization law requires and dismissed felonies for cultivation, transporting, or sales for individuals who hadn’t had a felony conviction in the last 10 years or have completed probation for those convictions.

“What this does is correct that inequity of the past. It gives them a start, a new start.” — Lackey, during a press conference, via the Times

The reforms were part of a partnership with Code for America – a tech firm that also worked with officials in San Francisco to erase 9,362 felony and misdemeanor convictions as far back as 1975. The computer program developed by the organization identifies eligible cases and fills out forms to file with courts and can analyze conviction eligibility for about 10,000 people per minute. Code for America has helped dismiss more than 85,000 cannabis convictions in five counties including Los Angeles, San Francisco, Sacramento, San Joaquin, and Contra Costa, according to a Fox News report.

The D.A.’s office is still challenging 2,142 cannabis convictions that it argues are ineligible for relief because of the individual’s criminal history; although those people can still petition to be resentenced, according to the report.

Of some 53,000 people in Los Angeles County who have found relief under the plan, about 45 percent are Latino, 32 percent are African American, 20 percent are white and 3 percent are “other” or unknown.

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Aurora Reports Net Loss of $980M

2/14/2020

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Canadian licensed producer Aurora Cannabis reported a net loss of about US$980 million for the fiscal second quarter with net revenues of US$47.7 million, down from US$53.4 million in fiscal quarter one. The company also reported its international medical cannabis revenues fell sharply from about US$3.8 million last quarter to about US$1.5 million this quarter. The company attributed the drop to “a temporary sales interruption.”

Company stocks, however, were still on the rise on Thursday after the financial report’s release.

Aurora Chief Financial Officer Glen Ibbott said in a statement, despite the massive losses, the company was “confident” that its run-rate would be “approximately CAD$40 million to CAD$45 million” by the end of the fiscal fourth quarter. Ibbott said the recent “transformation actions” taken by the company last week “already positively impacted SG&A expense.”

Those changes included the retirement of co-founder and CEO Terry Booth and the addition of two new independent directors. Executive Chairman Michael Singer was named interim CEO and the company said it was implementing a “business transformation plan.”

“Consistent with Aurora’s release dated February 6, 2020; the Company is bullish on the long-term potential for the global cannabis opportunity. However, due to several short-term factors, there is likely to be a slower than previously expected rate of industry growth in the near-term.” – Aurora, in a press release

During the fiscal quarter, Aurora produced 30,691 kilograms of cannabis, compared to 41,436 during the quarter prior – a 26 percent decrease that the company said was “primarily due to previously announced changes to cultivation strategies, including a pivot to high-value, high-potency strains which are lower yielding.”

The company expects its quarter three results to “show modest to no growth” relative to the quarter two report.

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