Canopy Growth Acquisition

Canopy Growth Acquires Medical Cannabis Research Firms

8/12/2019

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Canopy Growth (CGC) has acquired Beckley Canopy Therapeutics, a research firm it co-founded in 2018, the Motley Fool reports. The deal will also see Canopy acquire Spectrum Biomedical UK, a joint venture formed in January between Canopy and Beckley that distributes the company’s products.

Canopy indicated Beckley — which was co-founded last year with Beckley Research & Innovations — will be merged with Canopy’s in-house research program. The project had focused its research on cancer pain, opioid sparing, and smoking cessation, and Canopy said that research would continue following the acquisition. 

The deal still needs regulatory approval for the parts of the company Canopy did not already own; those approvals are expected within 90 days. 

It’s the latest acquisition for Canopy this year who announced in April that they had reached a deal to buy Acreage Holdings for $3.4 billion once cannabis is legalized federally in the U.S. — a requirement of Toronto Stock Exchange rules that say publicly listed companies cannot possess any illegal holdings at the risk of being de-listed, and cannabis remains a federally prohibited business in the U.S. The following month it bought Germany’s C3 which produces, distributes, and researches cannabis-based medicines for the European market.

In July, the board fired its founder Bruce Linton after significant losses this year. Co-CEO Mark Zekulin became the sole CEO but it’s expected he will only fill the role temporarily.

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Traffic Stop Cannabis Odor

Pennsylvania Judge: Cannabis Odor Alone Does Not Justify Vehicle Search

8/12/2019

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A Lehigh County, Pennsylvania judge has ruled that state police were not allowed to search a vehicle after the passenger showed them a medical cannabis patient identification card, according to an NBC10 report. The judge tossed evidence in the case in which the passenger faced drug and firearms charges.

“The smell of marijuana is no longer per se indicative of a crime.” Judge Maria Dantos, in her opinion, via NBC10

During the stop, police indicated they had smelled cannabis odor and had a right to search the vehicle even after the passenger had produced a valid, state-issued, medical cannabis card. Officers found a small amount of cannabis and cannabis residue, along with a loaded handgun under the seat, during the search. The passenger was unable to legally possess the weapon due to a previous conviction.

Dantos called the troopers’ actions “illogical, impractical and unreasonable” after the passenger had shown them the ID card and “are merely means of hampering the legalization of marijuana for medical purposes.” One of the troopers testified that he was unaware that medical cannabis was available as flower in the state and said he didn’t know medical cannabis had a smell. Dantos said the case showed a “clear disconnect between the medical community and the law enforcement community.”

Prosecutors in the case can still decide to move forward with the case but they would be unable to use any evidence found during the vehicle search.  

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CannTrust Audit Retracted

CannTrust Financial Auditor Responds After Health Canada Action

8/12/2019

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The auditor for Canadian cannabis company CannTrust Holdings, Inc., KPMG, is withdrawing its audits of CannTrust’s financial statements after Health Canada ordered it to hold more than 5,000 kilograms of inventory last month, according to a MarketWatch report. The auditing firm says CannTrust statements for 2018 and this year’s first quarter cannot be relied on.

Health Canada determined that the company had harvested plants from an unlicensed greenhouse which led to the hold and CannTrust followed suit and placed a voluntary hold 7,500 kilograms of flower. Danish medical cannabis company Stenocare also quarantined five batches of CannTrust oil after the Health Canada ruling as it launched its own investigation into whether its products imported from CannTrust had been grown in the illegal rooms. Stenocare later confirmed it had received some of the illegally-grown cannabis. 

On July 25, CannTrust announced Chief Executive Peter Aceto had been fired for cause and President Eric Paul was forced out after the Globe and Mail published emails showing top CannTrust officials knew about the illegal grows.

“KPMG was not aware of the information recently shared by the Company when it issued the KPMG Reports and had relied upon representations made by individuals who are no longer at the Company.” – KPMG, in a statement via Marketwatch 

Robert Marcovitch, who replaced Aceto as CEO said the company will continue cooperating with auditors and regulators and “take whatever steps are necessary to restore full trust in the Company’s regulatory compliance.”

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Bernie Sanders Says He Would Use Executive Order to Legalize Cannabis

8/09/2019

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In an interview on the Joe Rogan Experience podcast, U.S. Senator and presidential hopeful Bernie Sanders (D-Vermont) said he would legalize cannabis nationwide via executive order, according to a report by Leafly.

“What I call for now is the legalization of marijuana in America. I believe we can do that through executive order, and I will do that.” – Sanders, on the Joe Rogan Experience

In the crowded Democratic candidate field, the majority support federal cannabis legalization; however, Sanders is the only candidate to indicate he would use an executive order to enact the reforms.

During the interview, Sanders called expunging low-level cannabis crime records “the right thing to do” and described the Controlled Substances Act as “insane.”

“Heroin is a killer drug. You can argue the pluses and minuses of marijuana, but marijuana ain’t heroin,” the Senator said during the interview. “So we have to end that, and that’s what I will do.”

The National Organization for the Reform of Marijuana Laws (NORML) endorsed Sanders during his 2018 Senate reelection campaign, calling him “one of the most outspoken and visible advocates for ending marijuana prohibition.”

Sanders received an A-plus on the organization’s Congressional Scorecard for his sponsorship of a measure to end federal cannabis prohibition and another to provide banking access to the industry. Sanders first co-sponsored a bill to legalize cannabis federally in 1995. In a 2015 campaign rally, he called cannabis’ Schedule I status “absurd.”

During his interview with Rogan, Sanders also acknowledged the “good news” that some states are working toward expunging low-level cannabis crimes from criminal records.

According to an Economist-YouGov poll released on Wednesday, Sanders is polling third (13 percent) for the Democratic nomination behind Massachusetts Sen. Elizabeth Warren (16 percent) and former Vice President and Senator Joe Biden (22 percent).

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D.C. Opens Medical Program to Cardholders from Eight States

8/09/2019

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Washington, D.C. has opened its medical cannabis program to cardholders from other states in what Mayor Muriel Bowser called “patient-centric” emergency rulemaking.

The new reciprocity program is not dependent on whether other states accept patient cards from the District. Under the plan, D.C. dispensaries will accept cards from Alaska, Arizona, Arkansas, California, Nevada, New Mexico, New York, and Vermont; Louisiana, Minnesota, Oklahoma, and West Virginia are still under review.

“It ensures medical marijuana patients from other states can obtain their needed medicine. It will also promote public safety by allowing visitors to obtain their medicine at one of the District’s six – soon to be seven – authorized dispensaries rather than forcing them to go without or patronizing the illegal market.” – Bowser, in a press release

The program already accepts medical cannabis cards from Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Montana, New Hampshire, New Jersey, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island and Washington.

It’s the latest move by Bowser to expand the District‘s cannabis footprint. In May, she proposed the Cannabis Sales Act which would allow regulations for a taxed-and-regulated cannabis industry. Voters approved legalization in 2015 but federal law largely dictates policy in D.C. and officials have not implemented any recreational sales programs.

Under Bowser’s plan, D.C. residents must comprise 60 percent of an adult-use cannabis business and 60 percent of the employees need to be from the District. The measure would impose a 17 percent tax on recreational cannabis products which Bowser said would be used to fund public housing. That proposal is currently being reviewed by the D.C. Council.

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Massachusetts Regulators Fine Cannabis Company Over Pesticide Use

8/09/2019

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The Massachusetts Cannabis Control Commission has fined Plymouth-based cannabis company M3 Ventures $50,000 after an employee lied about the firm’s pesticide use, according to a MassLive report. Commission Chairman Steven Hoffman indicated that the company has “rectified” the issue “in multiple ways.”

State inspectors had initially shut down the company’s dispensaries in Plymouth and Mashpee in December over its pesticide use but allowed them to reopen in April.

Inspectors discovered the prohibited pesticides at the company’s cultivation facility in November and interviewed the director of cultivation about its use. During a follow-up inspection the following month, company brass admitted that the cultivation director “misrepresented the use of pesticides,” leading to the closure and fines.

In response, the company split the cultivator director position into two jobs – cultivation operations manager and master grower – and has partnered with a national firm to help develop a plan for pest management using approved substances.

In addition to the fine, M3 was placed on administrative probation through the end of the year and is required to track and record its additive use daily.

Cannabis Control Commission Enforcement Counsel Paul Payer said during a public meeting on Thursday that the company has not violated state regulations since it reopened and the firm had taken the steps to comply with the settlement that “reflect the integrity” regulators require from licensees.

Last March, state regulators launched an investigation into two other companies – Sea Hunter Therapeutics and Acreage Holdings – into whether they flouted cannabis company ownership rules by using loopholes in state regulations to hide their affiliations with other companies through the use of shell companies. That case is ongoing.

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San Francisco Issues Temporary Cannabis Permit for Outside Lands Festival

8/08/2019

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The San Francisco, California Office of Cannabis is set to grant its first temporary permit for cannabis sales and consumption at the city’s largest summer festival, Outside Lands, the San Francisco Chronicle reports. The state Bureau of Cannabis Control will also issue a license for event organizers.

The festival will have a dedicated section for cannabis called Grass Lands. Cannabis consumption will be separated from sales and both areas must be hidden from view by a barrier. Customers can buy up to 7 grams of flower at up to two grams of concentrate products, including edibles, across all vendors.

“Permitting Grass Lands as the inaugural event is the first step in creating a safe cannabis event space for those aged 21 years and older. Attendees will be able to purchase and consume lab-tested products away from the rest of the venue’s attendees.” — Marisa Rodriguez, director of the San Francisco Office of Cannabis, to the Los Angeles Times

The San Francisco Office of Cannabis has approved temporary cannabis permits for other events late in the year, including the Folsom Street Fair and the PRIDE Festival. State cannabis regulators have issued permits in the past for cannabis industry-related events.

BCC Spokesman Alex Traverso said Outside Lands is “unique” because it’s a large, outdoor festival in San Francisco‘s Golden Gate Park.

The event counts several cannabis companies as sponsors, including delivery service Eaze and LA-based company Field. Last year, the event drew more than 200,000 people over three days, according to the Times report.

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Luxembourg Plans to Legalize Cannabis Within Two Years

8/08/2019

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European Union nation Luxembourg is planning to legalize cannabis production and consumption and is calling on its EU neighbors to relax their own cannabis laws, the Guardian reports. Under the plan, a state-run cannabis agency would regulate the production and distribution of cannabis products, and the legal age would be set at 18.

Health Minister Etienne Schneider told Politico that the nation’s drug policy over the last 50 years “did not work.”

“Forbidding everything made it just more interesting to young people … I’m hoping all of us will get a more open-minded attitude toward drugs.” – Schneider, to Politico, via the Guardian

Officials expect sales to commence within two years, with draft legislation likely to be unveiled this year outlining the what types of products will be allowed and the tax structure. Schneider said it was unlikely residents would be able to grow their own cannabis and that only residents would be able to purchase the products.

Nations that have legalized cannabis nationally include Uruguay and Canada; each – along with 11 U.S. states – are doing so in the face of international drug treaties which outlaw cannabis and limit treaty signatories “exclusively for medical and scientific purposes the production, manufacture, export, import distribution, trade, employment and possession of drugs.”

Luxembourg has already legalized medical cannabis.

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Arizona Beverage Co. Reaches Cannabis Deal with Dixie Brands, Inc.

8/08/2019

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AriZona Beverage Co., the company that produces AriZona Iced Tea, has reached a deal with Denver, Colorado, based Dixie Brands, Inc. to market cannabis-infused gummies, drinks, and vape pens, the Wall Street Journal reports. The deal, which still needs approval from Dixie’s board, also allows AriZona the right to purchase a $10 million stake in the company.

According to the report, AriZona, based in Woodbury, New York, plans to market teas, lemonades, sodas, coffees, and seltzers in the U.S. and eventually expand into Canada and Latin America. Under the deal, Dixie would produce the products in the states where they are sold.

“You’ve got to be willing to try things. The upside is we’re one of the first ones in an emerging space.” — Don Vultaggio, Arizona chairman and CEO, to the Journal

AriZona is not a publicly-traded company and Vultaggio indicated the company would have likely been unable to move forward with the project if the company had been listed on any trading exchanges.

According to the report, AriZona is looking to diversify its products after losing its top spot as the leader of ready-to-drink tea to Pure Leaf, which is a joint venture by Unilever PLC and PepsiCo, Inc. Last year, its market share dropped to 16.2 percent from 23.4 percent in 2013. Over the last two years, AriZona has released new products like beef jerky and fruit snacks, with plans to launch a line of seltzers with fruit juice later this year.

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Zimbabwe to Legalize Hemp for Export

8/07/2019

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Zimbabwe plans to legalize hemp cultivation and production, hoping to spark an export market and boost its foreign currency earnings, Business Day reports. The announcement comes two months after the nation approved its first medical cannabis grow site.

Information Minister Monica Mutsvangwa said officials hope hemp will compete with mining and tobacco, Zimbabwe’s other top-earning industries. Mutsvangwa indicated that tobacco is “currently facing possibilities” of an international ban “due to its adverse effects on health.”

“Currently, Zimbabwe only allows for the cultivation and processing of cannabis specifically for medicinal and scientific purposes. In view of the foregoing, the law governing the use and control of hemp in the country will be repealed to reflect the current industrial thrust of the country.” – Mutsvangwa, to Business Day

Zimbabwe is currently facing a foreign currency shortage which has led to a lack of fuel, medicines, and basics such as bread.

The nation’s medical cannabis legalization was also partly due to economic factors and officials hoped the move would attract investors to Special Economic Zones, which offer investor incentives, including exemption from portions of the labor laws and black economic empowerment rules. They were established in Harare, Victoria Falls, and Bulawayo.

In May, medical cannabis firm Ivory Medical was granted approval to cultivate 10 hectares of medical cannabis at a prison – the project is a partnership between Ivory and the Ministry of Health and Child Welfare, is partly funded by NSK Holdings & International Investors, and Portuguese firm Symtomax, which is providing technical and farming support.

Officials said they expect to see $7 billion from medical cannabis export sales by 2023 but they have not estimated what the potential revenues could be derived from industrial hemp exports.

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Princeton Review Lists Colleges that Consume Most & Least Cannabis

8/07/2019

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As a part of its annual college rankings, the Princeton Review has included the colleges that consume the most – and least – cannabis and just nine of the top 20 on the “Reefer Madness” list are in states with legalized cannabis.

The colleges that made the list come from responses to student surveys when asked, “How widely is marijuana used at your school?”

The University of Vermont in Burlington topped the list of cannabis-consuming colleges, while other Vermont institutions, Marlboro College and Champlain College, landed at number nine and 14 on the list, respectively.

In all, seven New York colleges made the list – the most of any state – with Skidmore College in Saratoga Springs ranking fifth, followed by Bard College (8), Sarah Lawrence College (12), State University of New York at Purchase (13), Ithaca College (17), and Syracuse University and Hamilton College rounding out the top 20.

Colleges from Colorado and California – which have perhaps the largest legal cannabis industries – had two colleges each on the Princeton Review list. Claremont, California’s Pitzer College landed at number 2, while the University of California, Santa Barbara was 10th. Colorado College and University of Colorado, Boulder were back-to-back at 15 and 16.

Other colleges from states with legal cannabis to make the list include Portland, Oregon’s Reed College (6) and the University of Maine (7).

The University of Rhode Island rounded out the top 3, while Warren Wilson College in Asheville, North Carolina was number 11 and University of Wisconsin, Madison was 18th – none of those states have legalized cannabis for adult use.

Military academies represented the top 3 schools on the “Don’t Inhale” list, which also includes as many California universities as the “Reefer Madness” list: Thomas Aquinas College (5) and Pepperdine University (18).

The “Don’t Inhale” list also includes several colleges from legal states, including Illinois’ Wheaton College (7) and Illinois Institute of Technology (15), Michigan institutions Calvin University (9) and Hillsdale College (14), and Boston, Massachusetts’ Simmons University (20).

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Utah Supreme Court Rules Against Medical Cannabis Activists

8/07/2019

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The Utah Supreme Court has rejected a bid by cannabis activists to challenge the legislature’s decision to replace the voter-approved medical cannabis law with a more limited version, according to a Fox13 report. In the ruling, the court sided with the legislature and governor that they had the constitutional right to make the changes.

“We deny on the merits Petitioners’ arguments that the Governor effectively vetoed Proposition 2 and therefore exceeded his authority, and that the Two-Thirds Provisions of the Utah Constitution and Utah Code do not apply to legislation that amends an initiative.” — Justice Paige Petersen, in the opinion, via Fox13

The case was brought to the court by The People’s Right. Steve Maxwell, the head of the organization, said the ruling effectively makes all initiatives in the state “dead on arrival.”

Daniel Newby, one of the petitioners in the case, told Fox13 that the ruling proves the ballot initiative “charade” in the state “is over.”

“Utah’s supreme court has confirmed that the initiative process, the last resort citizens thought they could use to resist the network of corruption infesting every branch of government, was an illusory fraud all along,” he said following the ruling. “Utah Citizens have been denied their right ‘to alter or to abolish’ their own government (Declaration of Independence) through peaceful means. So-called initiatives are nothing more than non-binding resolutions conspiring politicians use for toilet paper.”

The state Attorney General Office simply told Fox13, “the ruling speaks for itself.”

This is not the only court case dealing with Prop. 2 and the legislative action that replaced it. The Epilepsy Association of Utah and Together for Responsible Use and Cannabis Education (TRUCE) are suing the state over not only how it was replaced – which seems to be settled with The People’s Right case – but what it was replaced with. That case argues that state-run medical cannabis dispensaries will stymie the program and could be unconstitutional.

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Adult-Use Licensing Up, Medical Licensing Down In Colorado

8/06/2019

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In 2018, there was a 3 percent increase in adult-use cannabis business licenses in Colorado and an 8 percent decrease in medical licenses, according to the Department of Revenue’s Marijuana Enforcement Division annual update.

In all, 209 municipalities in the state have banned industry operations, while 89 allow both medical and recreational sales, 12 allow just medical businesses, and 12 allow only recreational.

The adult-use market accounted for 66 percent of the total pounds of flower and 86 percent of edibles sold to consumers; the sector also accounted for 75 percent of total plants cultivated in the state from July to December. In all, from January through December last year, there were 8,857,580 plants cultivated for the adult-use market and 3,327,706 plants grown for the medical market. Denver, Pueblo, El Paso, and Boulder Counties had the highest number of plants cultivated each month for the third straight year.

The agency reports 10,927,543 units of edibles were sold on the adult-use side, compared to 1,842,325 units in the medical market; along with 1,027,999 units of infused non-edible products sold recreationally, and 179,586 medically. The state also reports 19,315 pounds of concentrate were sold to adult-use customers, with 14,652 pounds sold to medical users.

The agency issued an average of 1,316 new occupation licenses per month in 2018 – which are required for industry workers – and approximately 30 percent of employee licenses that expired last year were renewed.

Cannabusinesses largely passed ID-check stings as the agency conducted 293 checks and 92.3 percent of targeted businesses passed. Additionally, regulators conducted 5,235 license renewal investigations, 1,435 regulator and criminal investigations, 694 change of ownership investigations (while processing 54 change of ownership applications per month), 643 individual background checks, 585 modification of the premises investigations, and 399 compliance inspections.

Regulators also issued 206 license denials, suspended 56 licenses, and allowed 179 companies to keep doing businesses under some stipulation, agreement, or order.

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Study: No Increase In Teen Cannabis Use Post-Legalization In Colorado

8/06/2019

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Cannabis legalization in Colorado has not led to an increase in teen use; however, it has changed the way young people consume cannabis products, according to a study published in JAMA Pediatrics outlined by the Associated Press.

In 2017, about 78 percent of Colorado high school students reported smoking cannabis, down from 87 percent in 2015. About 10 percent of those surveyed indicated they had consumed cannabis edibles in 2017 – up from 2 percent two years prior – and another 7.5 percent said they had used dabs, up from 4 percent in 2015.

Kayla Tormohlen, a PhD candidate at Johns Hopkins Bloomberg School of Public Health and lead author of the study said that knowing the trends of teen cannabis use “can help inform public health efforts” as more states legalize use.

“Since the implementation of retail marijuana sales, we haven’t seen an increase in use among youth but we are seeing a difference in how young people are consuming.” – Tormohlen, to the AP

A 2018 California Healthy Kids Survey found that teen use had decreased post-legalization in the state. Overall, there was a 3.7 percent decrease in cannabis use among 7th graders, a 5.7 percent decrease among 9th graders, and a 6 percent decrease among 11th graders.

Another study published in JAMA Pediatrics last month found an 8 percent decline in the number of high schoolers who have used cannabis within the last 30 days, and a 9 percent drop among teenagers who have used cannabis 10 times in the last month. That study analyzed high school surveys from 1993 to 2017, which represents about 1.4 million student surveys.

The July study suggests that teen use declined because “it is more difficult for teenagers to obtain marijuana as drug dealers are replaced by licensed dispensaries that require proof of age.”

The researchers focused on Colorado found just 3 percent of teens who admitted to smoking cannabis said they had obtained the products from a dispensary, while 40 percent said they bought it from someone else. Others obtained it from friends, parents, or adult family members.

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University of Missouri Plants State’s First Hemp Crop

8/06/2019

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The University of Missouri has planted the state’s first hemp crop in 70 years at its Bradford Research Center, the St. Louis Dispatch reports. Under a bill signed into law in June, universities are allowed to begin planting hemp crops immediately, but farmers still have to wait until Aug. 28.

The university is partnering with Tiger Fiber, LLC, which provided the seeds, on the crop study. The research spans six MU research centers across the state, including the Fisher Delta Research Center, the Greenley Research Center, Forage Systems Research Center, Hundley-Whaley Research Center, Graves-Chapple Research Center and the Southwest Research Center.

Dale Ludwig, executive director of Missouri Hemp Association, called the crops “the biggest opportunity in the last 200 years to make Missouri farmers more profitable.”

“The opportunity for universities to put seed in the ground this year will help our growers be more prepared for the 2020 growing season.” – Ludwig, in a press release, via Nutritional Outlook

Tom Raffety, president of the Missouri Hemp Producers Association, also applauded the university’s hemp research, telling the Dispatch that he has heard “horror stories” from farmers in other states who have purchased bad seeds.

“There’s only so much information you can find on the Internet, and much of it’s wrong,” he said in the report. “Hopefully the university research will really give some guidance to growers moving forward.”

The new law scrapped the old pilot program that allowed hemp cultivation but only on 10 to 50-acre plots. The new law has no acreage limits but still requires growers to be licensed with the state Department of Agriculture and, like all state programs approved after the passage of the Farm bill last year, Missouri’s still needs approval from the U.S. Department of Agriculture before it is made permanent.

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Federal Proposal Would Make Cannabis Research Easier

8/05/2019

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U.S. Senator Dick Durbin (D-Illinois) has introduced legislation to remove all federal restrictions on cannabis research, hoping to spark more research into the plant, KHQA reports. The Expanding Cannabis Research and Information Act would direct the National Institutes of Health, the Centers for Disease Control, and the Substance Abuse and Mental Health Services Administration to develop a research agenda.

“With some form of legalization on the books in over 30 states and now Illinois, I want to lift federal restrictions so we can conduct additional medical research on marijuana. We need a better understanding of promising uses of cannabis for treatment, as well as how marijuana use impacts public safety and specific populations – including children, pregnant women, and drivers.” – Durbin, in a press release, via KHQA

The bill would move cannabis from a Schedule I to Schedule II under the Controlled Substances Act and the Drug Enforcement Administration would still be required to grant licenses for cannabis research.

Under the plan, research institutions would only have to undergo one DEA faculty and staff inspection that would be valid for five to 10 years. Under current law, the DEA must give specific approval for each researcher for every study.

The measure would see HHS collect cannabis research data, data from public health surveys, and public health records related to cannabis use and health outcomes.

According to KHQA, the bill has support from the Illinois State Medical Society, Epilepsy Foundation, National Multiple Sclerosis Society, Parkinson’s Foundation, Michael J. Fox Foundation, American Public Health Association, and Chicago Medical Society.

Durbin’s is the latest piece of legislation introduced this year at the federal level aimed at reforming cannabis laws. The Senate Banking Committee held a hearing late last month on the SAFE Banking Act which would allow cannabusinesses to access financial services.

According to a Marketwatch analysis, the cannabis industry has already spent $1.6 million on federal lobbying efforts so far this year after totaling $2.7 million in lobby spending in 2018.

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Hemp Seeds

Hemp Seed Bank Under Construction at Cornell University

8/05/2019

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Construction has begun at the nation’s only industrial hemp seed bank, funded in part with a $500,000 grant from the U.S. Department of Agriculture. The Industrial Hemp Germplasm Repository at Cornell University in Geneva, New York will be the first hemp seed bank in the U.S. since hemp was added to the Controlled Substances Act.

The funding for the seed bank was secured by U.S. Sen. Chuck Schumer (D-New York) who said the repository would help breeders and geneticists develop new cultivars and identify hemp genes for improved pest and disease resistance. Schumer was one of the sponsors of the 2018 Farm Bill which removed hemp from the Controlled Substances Act.

“When it comes to kicking Upstate New York’s burgeoning industrial hemp industry into an even higher gear, the Industrial Hemp Germplasm Repository is just what the doctor ordered. Not only will this facility act as the United States’ only industrial hemp seed bank, but it will also allow the world-class agricultural scientists at Cornell to help boost industrial hemp entrepreneurship.” — Schumer, in a press release

Schumer suggested that the seed bank and the hemp industry would help boost the upstate New York economy. Kathryn J. Boor, the Ronald P. Lynch Dean of Cornell’s College of Agriculture and Life Sciences said the seed bank and “the research that it will allow” Cornell and USDA-ARS scientists “will be vital resources for New York state farmers.”

The Industrial Hemp Germplasm Repository will be overseen by a curator charged with characterizing, maintaining, and distributing seeds.

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Portland, Maine Releases Cannabis Industry Regulations Proposal

8/05/2019

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Proposed cannabis industry regulations by officials in Portland, Maine, would cap the number of dispensaries in the city at 20 and require an annual $10,000 licensing fee, the Portland Press Herald reports.

The proposal would ban mobile sales, deliveries, and mail-order sales; although, caregivers could still deliver to patients. However, according to a report by city staff who worked on the proposal, recreational cannabis regulations could also bring more rules for the medical side.

According to the staff memo, the working group indicated they have been trying “to generally treat medical and adult use marijuana uses similarly.”

“The challenge in doing so is that the state has adopted extensive regulations for adult use marijuana uses, but not for medical uses. The regulations for medical uses are significantly less comprehensive, leaving what staff feels are gaps in protections for consumers, the City, and neighbors. For that reason, the proposed licensing tries to address those gaps.” – Portland Cannabis Working Group, Marijuana Business Licensing Overview memo

The working group suggests three cultivation tiers – from just 500 square feet of canopy to 7,000 square feet – and two types of manufacturing licenses, one for “low hazard processes” and another for “higher hazards.” Medical and recreational sales would occur in separate dispensaries and the caregiver system in place in the state would remain intact.

The staff proposed that retail licenses should be awarded on a “first-qualified, first-licensed bases.” If a company failed to open its store within one year they would forfeit their license. Applicants would also have to employ a community relations liaison, have written permission from their landlord, disclose all of the chemicals being used in operation and processes, and have plans in place for security, waste disposal, and quality control.

The proposal also prohibits edibles from being made in shapes that could appeal to children or adding cannabis to existing consumer products.

The state Health and Human Services, Public Safety, and Economic Development committees are expected to discuss the proposal on Tuesday.

Maine legalized cannabis four years ago; however, largely due to former Republican Gov. Paul LePage have been unable to rollout the industry in earnest.

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Ohio Ag Department Plants Hemp Crop

8/02/2019

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The Ohio Department of Agriculture has planted two rows of hemp crops on its Reynoldsburg campus just two days after Gov. Mike DeWine (R) signed the bill legalizing the crop and CBD, the Cincinnati Enquirer reports. The agency bought 100 seedlings from a mother hemp plant in Kentucky and will grow some outdoors and some in a greenhouse.

“It’s an historic day for the state of Ohio. There’s a real art in growing it and we want Ohio farmers to be successful.” — Agriculture Director Dorothy Pelanda, to the Enquirer

The department planted four hemp varieties used for CBD extraction from Acaela Biomedical. They paid $250 for the crop.

According to the report, officials plan to use the plants as practice for when they have to test crops grown by the state’s farmers. Cultivators are also invited to visit the field to learn about the growing and harvesting process.

Farmers are expected to begin planting hemp crops in Ohio next year, while Ohio State University and Central State University plan to plant their own hemp crops this summer.

The Agriculture Department must craft rules for the industry before farmers can start their own crops. Those plans must be approved by the U.S. Department of Agriculture before they are made permanent, as required by the 2018 Farm Bill which legalized hemp federally.

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Medical Cannabis Sales Expected Next Week In Louisiana

8/02/2019

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Medical cannabis patients in Louisiana are expected to begin receiving products on Tuesday after agriculture officials cleared cannabis from one of the state-approved growers, the Associated Press reports. The announcement comes nearly four years after lawmakers created regulations for the industry.

“We are pleased to announce that LSU-GBSL’s final medical marijuana product has passed all testing and is cleared for immediate release to the medical marijuana pharmacies.” — Louisiana Agriculture and Forestry Commissioner Mike Strain, in a statement, via the Advocate

GB Sciences is the first company to have its products tested and approved by the Agriculture Department. The firm partners with Louisiana State University to grow the crops; the state law requires companies to partner with academic institutions. Southern University partnered with Ilera Holistic Healthcare, who planted its first crop last week, but told the AP that their product could be ready by fall.

The state does not permit raw cannabis flower, opting instead for tinctures, pills, inhalers, topicals, and oils. GB Sciences’ first product will be a tincture and is expected to cost between $90 and $200 per bottle depending on the formulation.

There are nine dispensaries in the state awaiting product but its unclear how many will actually be able to start dispensing to patients on Tuesday; one cultivator is currently supplying all of the state’s products. GB Sciences’ growing facility is in Baton Rouge and they might not be able to reach all of the dispensaries across the state in one day.

Jesse McCormick, executive director of Louisiana Association for Therapeutic Alternatives, told the Advocate that getting products to patients was “a long time coming.”

“This is for all the patients, advocates, elected officials, two universities, department staff, employees, volunteers and anyone who took the risk to make this historic undertaking a reality,” he said in the report. “It is a great day for Louisiana. We couldn’t be more proud.”

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Feds to Let Utah Use Cannabis Distribution Plan, Avoiding Rework

8/02/2019

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The U.S. Department of Health and Human Services has told Utah Gov. Gary Herbert (R) that the state’s plan to use county health departments to dispense medical cannabis would not jeopardize its federal funding, the Salt Lake Tribune reports. The letter from Jennifer Moughalian, the acting assistant secretary for financial resources at HHS, comes as Utah lawmakers consider retooling the state’s medical cannabis distribution system due to concerns that the plan violates federal law.

“Utah’s Medical Marijuana law will not affect the State’s eligibility to apply for HHS grants nor will it affect the outcome of the State’s application,” Moughalian said in the letter.

Moughalian did note that funds that come from HHS may not be “utilized directly or indirectly to support any program or initiative (other than research) associated with marijuana – not just in Utah but nationwide” since cannabis remains a Schedule I controlled substance federally.

“Medical marijuana is not an allowable cost under HHS grants awards; the post-award program evaluations and audits will examine the allowability of all costs.” – Moughalian, in the July 19 letter

At least one Utah official, Salt Lake County District Attorney Sam Gill, has previously said he would advise health departments in the county to not participate in the program since dispensing medical cannabis is in “direct conflict with federal law.”

Connor Boyack, founder of the libertarian Libertas Institute, who helped craft the Utah Medical Cannabis Act, told the Tribune it is “great” to have federal reassurance but noted the “letter is unbinding and subject to change at any time.”

“So counties have felt like that’s an insufficient reassurance that they will be forever legally protected and have access to federal funding if they were to be involved in distributing a federally illegal substance,” he said.

In a statement, Herbert defended the law – a voter-approved initiative amended by the legislature – saying “any suggestion that the current law would require county employees to be ‘drug dealers’ is unprofessional and inappropriate.”

Senate Majority Leader Evan Vickers (R) has indicated that lawmakers could hold a special session to fix the medical cannabis distribution issues this month.

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Alaska Gov. Pulls Funding for Hemp Pilot Program

8/01/2019

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Alaska’s hemp cultivation pilot program has been completely defunded and the crops being grown by the state under the program have been destroyed, according to a KTUU report. The Department of Natural resources has destroyed 1,000 hemp plants being grown at the Plant Material Center in Palmer as they no longer had enough staff to care for the plants.

Gov. Mike Dunleavy (R) told KTVA that he had pulled the program’s $375,000 funding because “currently there is no existing industry to support a state funded program.” However, without the pilot program, there can be no legal industry in the state.

The bill establishing a pilot program for hemp was approved by the Senate in 2017 and unanimously by the House last year and was largely supported by the state’s farming community. The measure was signed into law by then-Gov. Bill Walker, an Independent.

According to a fiscal note attached to the legislation, application and registration fees paid by farmers to grow the crop were expected to make up for any money paid by the state to get the program off the ground. The Natural Resources Department expected at least 25 farms to register to grow the crops in the first year but had only issued proposed regulations to govern the program on May 31.

Aaron Ralph, owner of Alaska Cannabis Exchange, told KTUU that he expected the hemp bill would lower the costs of his CBD oil, which he sources from Colorado and currently costs $165 for a 60-day supply. Ralph said he had planned on sourcing the oil from Alaska which would reduce the product’s cost.

“It’s just kind of disappointing, because our goal was always to be able to produce Alaska’s products in Alaska. I see this as jobs lost for the state.” – Ralph, to KTUU

Dunleavy’s hemp program cut was part of a larger action that closed two of the four PMC greenhouses and laid off 17 Division of Agriculture positions – more than half of its workforce.

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Study Contradicts Claim That Cannabis Reduces Opioid Overdoses

8/01/2019

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A new study by the Stanford School of Medicine titled ” Association between medical cannabis laws and opioid overdose mortality has reversed over time” questions the findings of a widely cited 2014 study that showed states that had legalized medical cannabis experienced fewer deaths from opiate overdoses. The researchers used the same methods as the 2014 study, but found the positive results did not hold up when the time period was extended from 1999-2010 to 1999-2017.

In fact, they found states who had recently passed medical cannabis laws — in the additional seven years, 32 states passed medical cannabis law, including seventeen who passed high CBD laws — actually saw an increase in opioid overdose deaths. Additionally, researchers found no correlation between the level of cannabis restrictions and overdose deaths when comparing states with more restrictive medical cannabis laws to states with recreational cannabis.

However, the researchers said if they had stopped their analysis at 2012, the 2014 findings would have held. They say it was not until 2013 the results became “equivocal.” According to the paper, by 2017 the findings had reversed such that if a study was conducted that year, one could conclude medical cannabis laws contributed to higher opiate mortality rates.

The study was funded by a grant from the National Institute of Health, the Veterans Health Administration, and the Stanford Department of Psychiatry and Behavioral Sciences. 

“We find it unlikely that medical cannabis — used by about 2.5% of the US population — has exerted large conflicting effects on opioid overdose mortality. A more plausible interpretation is that this association is spurious. Moreover, if such relationships do exist, they cannot be rigorously discerned with aggregate data. Research into therapeutic potential of cannabis should continue, but the claim that enacting medical cannabis laws will reduce opioid overdose death should be met with skepticism.” — Excerpt from the study

The authors go on to say the 2014 results were widely misinterpreted due to the common assumption that correlation equals causation. They believe that perhaps other factors, such as increased naloxone availability, lower incarceration rates, and better insurance and health services, may have contributed to the lower opioid death rates, not medical cannabis access.

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Massachusetts Gives First Social Equity Program Provisional License

8/01/2019

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The first cannabis dispensary to benefit from the Massachusetts Cannabis Control Commission’s economic empowerment program is expected to open by late October and is the first to get approval within Boston city limits, according to a WBUR report. The economic empowerment program is Massachusetts’ social equity initiative for the cannabis space.

Kobie Evans is a native of Dorchester, which historically has high cannabis arrest rates – a key requirement for applicants of the state’s economic empowerment program. His business partner, Kevin Hart, grew up in Baltimore, Maryland and Virginia; both men are African American.

Requirements for the social equity program include having a past drug conviction, or being the spouse or child of an individual with a drug conviction, or having lived in an “area of disproportionate impact” for at least five years, and having an income that doesn’t exceed 400 percent of the federal poverty level. Applicants must have lived in Massachusetts for at least 12 months.

The duo’s company, Pure Oasis, has so far only been granted a provisional license and still need a final license and operating certificate.

Under the program, 123 social equity licenses will be available to qualifying applicants but, according to the WBUR report, the CCC has received only 10 applications. Evans said the application process – which can cost between $50,000 and $60,000 – “isn’t easy.”

“… It would be a lot easier if we had a pile of money to hire a big lobbying firm to set up meetings with mayors, but that’s not the case. Being the little guys makes the process difficult to impossible.” – Evans, to WBUR

Evans called “the politics” the hardest part of netting a business license because the state law requires businesses enter into Host Community Agreements, which allows municipalities to collect up to 3 percent of a business’ gross sales for up to five years, before the CCC will even consider an application.

Evans and Hart said they plan to hire individuals from the community, including those with criminal records, at their shop and hope to, eventually, launch a business incubator.

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