Ganjapreneur.com

Cannabis Decriminalization & CBD Bills Introduced in Indiana

12/27/2019

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

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

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

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

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 “We have these outdated, senseless laws on the books that make a criminal out of an otherwise responsible adult for having small amounts of cannabis.”

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

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

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

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

End

Activists Withdraw Adult Use Petition in Oklahoma

12/27/2019

Oklahoma activists have withdrawn their petition to legalize cannabis in the state due to concerns that broad legalization could have a negative impact on the state’s medical cannabis industry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

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

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

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

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

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

End

Senate Pulls Adult-Use Industry Protection Riders from Budget Bill

12/26/2019

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

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

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

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

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

End

USDA Rolling Out New Pilot Insurance Program for Hemp

12/26/2019

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

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

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

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

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

End

New Jersey Medical Cannabis Expansion Stalled by Lawsuit

12/26/2019

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

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

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

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

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

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

End

EPA Approves 10 Pesticides for Hemp

12/23/2019

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

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

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

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

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

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

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

End

Oregon Regulators Ban THC & CBD From Beer

12/23/2019

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

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

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

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

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

End

Massachusetts Lawmakers Consider Cannabis Billboard Ban

12/23/2019

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

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

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

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

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

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

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

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

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

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

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

End

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

12/20/2019

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

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

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

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

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

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

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

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

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

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

End

Senate Committee Chairman Pushes Back Against SAFE Banking Act

12/20/2019

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

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

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

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

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

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

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

End

South Dakota Approves Medical Cannabis Initiative for 2020

12/20/2019

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

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

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

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

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

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

End

South Carolina Police Seize Interstate Hemp Shipment

12/20/2019

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

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

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

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

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

“We do not want to withhold anything that’s legal from anybody,” Green said in the report. “But the way it’s packaged and the way the investigation has gone up to this point we wanted to do our due diligence in making sure that it is what it’s said to be.”

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

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

End

Tilray Sued for $300M Over Alleged Illegal Acquisition Scheme

12/19/2019

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

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

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

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

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

End

Chicago City Council Committee Approves 6-Month Cannabis Moratorium

12/19/2019

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

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

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

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

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

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

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

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

End

Florida Legalization Group Suspends 2020 Campaign

12/19/2019

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

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

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

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

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

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

End

Free Medical Cannabis Helpline Launched In Colorado

12/19/2019

A group of Colorado medical professionals has created a free medical cannabis helpline called Leaf 411 aiming to help consumers navigate medical cannabis use, according to a Denver Channel report. Callers can remain anonymous and get advice from a “cannabis-trained nurse,” Chief Operating Officer Jennifer Axcell said in the report.

“Cannabis as a medicine is a journey. Finding your dose and finding what works for you, and even after having the appointment with the doctor, there were still more questions.” — Axcell, to the Denver Channel

Axcell said her own journey with medical cannabis came about 10 years ago after she was injured in a car accident and subsequently prescribed “a bunch of different pharmaceuticals.”

The organization’s chief executive officer, Katherine Golden, is a registered nurse who started looking into medical cannabis treatment after a family member was diagnosed with stage 4 cancer. She said that the group hears a lot from seniors who “still believe the only way to get medicine is inhaling.”

“So it’s wonderful to be able to say ‘no, there’s all these other formulations out there,'” she added.

According to a University of Colorado study, cannabis use by seniors has increased tenfold over the last 10 years, the fastest for any demographic.

The organization has an oversight board that includes nurses, a physician, and attorneys. It counts about 20 cannabis firms among its founding members.

End

Michael Catudal: Advancing Opportunities In Hemp and Cannabis

12/18/2019

Michael recently answered some questions for our latest written Q&A session — in this interview, we hear about the launch of Capital Business Collective, the difficulties and rewards of connecting investors with cannabis entrepreneurs, the benefits of working with an investment “collective,” and more.

Check out the full interview below!

Ganjapreneur: How long has Cap Biz Collective been connecting investors and entrepreneurs? Where did the idea for the business originate?

Michael Catudal: We started Capital Business Collective in August of 2016 primarily for consulting startups and small businesses on increasing efficiencies within their business operations and financial activities. I brought several years of manufacturing automation and finance experience and combined it with my business partner’s finance and investment experience, and we started building out our network, or “collective,” of subject matter experts. As the new consultants on the block, we’d use these SME’s on projects where we felt they would augment our skillset and add value for our clients, which in turn helped us build our network and reputation tremendously. That was our initial focus as small fish in the big pond of Washington, DC. Once we shifted our focus to the cannabis industry, much of our consulting work focused on helping companies raise capital and not just helping them overcome operational hurdles. This caused us to focus our efforts on the finance side of things, spanning from M&A opportunities to capital raises, asset/equipment financing, and working/growth capital infusions, while we will still consult those companies as needed to ensure they succeed and protect the investments as best as possible. Now our business model is two-sided: working with the companies needing to raise capital, and working with our network of investors to match them with the opportunities that best fit their criteria.

Have cannabis and hemp been your primary focus since the beginning? If not, what prompted the move into the cannabis space?

Our shift to primarily focusing on the legal cannabis space came when we joined our local Chamber of Commerce at the beginning of 2018. Our very first meeting we met the Founder of a local dispensary who was frustrated with the lack of banking services offered to the industry. As a firm that prided ourselves as the ones who could come up with solutions to the most challenging obstacles that companies face, regardless of the industry, it had actually been an issue that was already on our radar for some time. I’m a strong proponent that all disadvantages are actually advantages in disguise, and also that within gaps in efficiencies are where the biggest opportunities are hiding. The gray market of the emerging legal cannabis space presented both of these to us and we decided this was where we could be most useful moving forward.

What is the ultimate goal of the company?

Our goal is to cement our place in this historic time by having a hand in helping this incredible emerging industry grow. There hasn’t been this kind of opportunity for growth and prosperity for new and existing entrepreneurs since Prohibition, and many of these newcomers are bound to do incredible things, but don’t have, or know how to find, access to the capital and resources they need to get their business off the ground and successful. We don’t just want to see the industry grow because of the tremendous opportunity available, we also believe in the medicinal value of the crop. We are board members of a DC-based nonprofit that helps find alternative therapies for Veterans and their families battling PTS, TBI, and opioid addiction. Through our work with the nonprofit and its several partners with similar missions, we’re finding more and more overlap every day between our business in the cannabis industry and those Veterans, first responders, athletes, and other trauma sufferers whose lives are truly being saved by this crop. The more we (and anyone else) are able to assist in the growth of this industry, the more lives that may be able to improve. Our success lies in the success of the businesses we’re able to bring in and help thrive within this industry.

How does the investor membership work, and what opportunities does membership entail?

With our two-sided business model, we make sure we spend as much time providing value to our investor network as we do to our clients in need of help raising money. We do that by offering an exclusive Investor Membership for individual and institutional investors. They pay an annual fee in exchange for 24/7 access to our entire deal flow, which we like to call our “Deal Menu”. All of our deals are listed on our private web page with pertinent info and data for each and it is constantly updated with any changes to new and existing deals. They can browse this Menu anytime and request more info or an introduction to any deal they might be interested in. In addition to 24/7 access to the private web page, we send a weekly email status update to the Members that covers all of the deals on the Menu, and additional “breaking emails” whenever a significant change happens, such as a round opening, closing, or a large proportion of a round being subscribed to. For about the price of a latte a day, this is invaluable insight for investors to have into our extensive network of clients (which now spans the US, Canada, Australia, Europe, Africa, and South America).

How do you identify entrepreneurs and pitch decks to present to members?

We get more requests for assistance than we can keep up with through our website alone, but we’re fortunate to have such a vast network because a significant portion of our clients come to us by referral from friends, colleagues, and other companies we’ve worked with. We vet each opportunity that comes to us to make sure it’s legitimate and has the potential to be a valuable investment for our members, and we only add them to our Menu if we deem them so. It’s important to understand the companies you work with and their people. In a gray and booming market such as this, there are countless imposters and bad opportunities flooding the market and listing one bad opportunity could devastate the firm’s reputation, not to mention an investor’s wallet. We want to ensure every opportunity we promote is worthwhile for everyone involved. We will also work with certain companies, who may not quite be ready to be listed on our platform, to bring them up to that level and begin promoting them when they’re ready.

What do you think the next 5 years look like for cannabis policy in the US and globally?

This is obviously a very exciting time for the cannabis industry all over the world with regulations changing every day. I’m very optimistic about policies improving, including federal legalization in the US. Legislation such as the SAFE Banking Act passing the House and the MORE Act being approved by the House Judiciary Committee indicate to me that the climate for legalization in the US is moving beyond the constituents and finally starting to resonate with lawmakers themselves. As cannabis becomes more mainstream and comfortable, sooner or later they’ll realize re-election will become increasingly difficult the longer they hold out. This paves the way for the STATES Act, or similar legislation that has yet to be written, to eventually pass. Big Tobacco, Pharma, and Alcohol have all already dipped their toe in the water with certain strategic acquisitions, the lobbying money will follow soon.

Where are the most enticing cannabis industry verticals for investors right now?

Right now Hemp/CBD is booming. After the Farm Bill passed about a year ago, people are realizing they can set up the infrastructure that will eventually get them into cannabis once it’s legalized by getting into hemp now, and it’s completely legal at the Federal level in the US and Canada so the regulatory headaches are marginal comparatively. I like growth and extraction businesses the most right now, but the CPG market (beauty products specifically) is getting right up there as well. With the traditional beauty products market being as massive as it is, it’s hard to ignore the CBD parallel with it.

In cannabis specifically, license holders in limited license states. Without question.

What advice do you have for entrepreneurs who might want to send you a pitch deck? What should they have prepared, and how can they get in touch?

We like companies who know the market inside and out (and their niche specifically), who have a meticulous plan for world domination, who have the right people in the right positions, and who are honest about their competitive advantages along with their areas for improvement. Right now in this industry, everyone has the same idea, it’s what you’re doing to differentiate yourself and add value that’s going to attract investors. We don’t need a 40-page business plan, the most immaculate pitch deck in the world, or to-the-penny projections, we can work with you to polish each of them up. But the substance behind each of those elements should be rock solid and completely defensible, by everyone on your team. Once you have those you can send us a message at www.capbizcollective.com or email me directly at michael@capbizcollective.com.

Thanks for answering our questions, Michael! Learn more about Capital Business Collective

Follow Capital Business Collective on Facebook, Instagram, Twitter, and LinkedIn

End

California Officials Suggest Switch to Potency-Based Cannabis Tax Rates

12/18/2019

California’s non-partisan Legislative Budget Office is suggesting the state move to a “potency-based or tiered ad valorem tax” for cannabis to stabilize revenues and discourage abuse. The report recommends that the state get rid of the tax on cultivators based on weight but said if the state keeps the current tax regime they should increase the excise tax by 5 percent or risk not meeting the $350 million in annual cannabis tax revenues needed to fund all of the programs outlined in the legalization bill.

The agency points out that Canada’s legalization law includes a C$0.01 tax per milligram of THC along with sales taxes and that a tiered ad valorem tax would set different tax rates on different potency and product types – similar to the model used in Illinois, which sets a 10 percent tax on cannabis flower and other products with THC concentrations below 35 percent, a 20 percent tax on “cannabis infusions,” such as edibles, and a 25 percent tax on products with THC potency above 35 percent, such as concentrates.

Ellen Komp, deputy director of NORML’s California chapter, told the O.C. Register that she was “flabbergasted” that the LAO would suggest raising the tax rate and that the advocacy organization “expected them to recommend, or at least discuss, the benefits of lowering the state tax.”

The report outlines four tax structures – including the current model – and found that, while a potency tax would be best for reducing harmful use and raising stable revenue, the current model is best for administration and compliance funding and that a weight-based tax would also be effective in raising stable revenues but would be ineffective for reducing harmful use or funding administration and compliance. The agency found the tiered tax was just average at reducing harmful use, raising stable revenues, and funding administration and compliance.

California’s current 15 percent tax rate is equal to or below tax regimes in other states with legalized adult-use but the state also imposes up to 10 percent in sales taxes on nonmedical cannabis and cities are allowed to impose their own taxes of 5 percent to 20 percent. The state’s cannabis growers also pay a rate of $9.25 per ounce for dry flowers or $2.75 per ounce for leaves. On January 1, that levy on cultivators is being hiked from $9.25 to $9.65, while leaf taxes per dry-weight ounce move from $2.75 to $2.87, and the plant rates will increase from $1.29 to $1.35.

End

Vitamin E Acetate Prompts Legal Vape Product Recall in Michigan

12/18/2019

Michigan’s Marijuana Regulatory Agency has recalled five vape cartridge brands after the products tested positive for vitamin E acetate. The Centers for Disease Control in November linked the compound to the pulmonary injury illness that has sickened more than 2,400 and led to 52 deaths.

The regulatory agency has required cannabis vape cartridges to be tested for vitamin E acetate since November 22 and the positive tests mark the first time the compound has been found in the state’s legal market. The five products – Cereal Cart, Monopoly Cart, Royal Highness, Dank Vape, and Savage Stick – were sold at Elite Wellness in Mount Morris and Bay City between August 3 and November 22. State regulators had forced all licensed dispensaries to remove vape cartridges from their shelves for testing and, just last week, stores began to get them back in stock.

The tainted cartridges came from a caregiver who sold the products to licensed cultivator Larren Investments, according to the MRA recall notice. The MRA also found vitamin E acetate in four other products purchased by Larren Investments that had not yet made it to stores, including WCE Blueberry Distillate, WCE Gelato Distillate, WCE Sour Diesel Distillate, and WCE Skywalker OG Distillate.

Under MRA rules, vitamin E acetate in vape products is limited to 100 parts per million; some of the recalled products contained levels of vitamin E acetate as high as 68,432 ppm and as low as 105 ppm.

End

New York Hires Former Rhode Island Cannabis ‘Czar’

12/17/2019

New York Gov. Andrew Cuomo (D) has hired Norman Birenbaum to run the state’s cannabis office and help craft policies for legalization, which a senior advisor to Cuomo called a “priority for next year,” the Buffalo News reports. Birenbaum, 32, previously served as the top cannabis regulator in Rhode Island until leaving the post for the unspecified New York job in November.

Rich Azzopardi, a senior advisor to the governor, told the Buffalo News that Birenbaum will oversee all things cannabis-related – including hemp and CBD. Cuomo signed a bill into law last week to regulate both the industrial hemp and CBD industries. Birenbaum oversaw both of those industries along with medical cannabis in Rhode Island.

State Sen. Liz Krueger (D), the sponsor of the state Senate’s legalization bill, said the addition of Birenbaum, who will work out of Cuomo’s office, “is a clear signal the Legislature will have a partner” on the cannabis legalization issue in the upcoming session.

Cuomo had included cannabis legalization in his 2021 budget, unveiled in January, but it was pulled in March after legislative leaders expressed concern about the reforms being passed in a budget bill rather than through the legislative process.

Lawmakers, however, would close the 2019 session without a legalization deal – blocked by downstate Democrats – though they did pass a bill to expand decriminalization protections to cover up to 25 grams and expunge low-level cannabis convictions.

After the end of the session, Cuomo met with governors from neighboring states about potential regional policies for cannabis legalization. The hiring of Birenbaum is a sign that Cuomo is finalizing his legalization plans ahead of the upcoming session.

End

Illinois Lawmakers Promise Patients Priority Access In Adult-Use Market

12/17/2019

In a letter published Monday, a group of Illinois lawmakers says there will be “an initial, and hopefully short-lived shortage” of cannabis when adult-use sales begin, as the legalization bill passed last year includes language giving patients “priority access.”

“Each state that has implemented an adult-use cannabis program has had issues related to supply shortages. As legislators, we crafted the CRTA and the MCPA to have specific language to prioritize patient access – something no other state has done. We know there will still be challenges, but are committed to putting patients first as the adult-use program begins.” — Illinois lawmakers in a Dec. 16 letter

The lawmakers, from both chambers of the legislature, indicated that both patients and caregivers in the state “raised concerns” about a potential supply shortage once the recreational market launches and they “have confidence” that the governor’s administration takes the matters “as seriously” as the letter’s authors.

“There should be no doubt that medical cannabis patients will be prioritized once CRTA becomes effective in January,” the letter says. “CRTA provides medical cannabis patients priority sales in the event of any product shortages, and also guarantees medical cannabis dispensaries shall continue to provide the same variety and quantity of product as they did on July 1, 2019.”

Jordan Abudayyeh, a spokeswoman for Gov. J.B. Pritzker (D), told the Chicago Sun-Times that officials are actively monitoring supply, and that regulators can penalize “bad actors,” including revoking dispensary and cultivation licenses held by those who violate the law.

Adult-use sales in Illinois are set to commence on January 1.

End

New Jersey Legislature Passes Bill to Put Cannabis Legalization to Voters

12/17/2019

Both chambers of the New Jersey Legislature have approved legislation to put adult-use cannabis legalization to voters during next year’s General Election, NJ.com reports. The measure passed the Senate 24-16 and the Assembly 49-24.

The vote follows a failed bid in the state last session – which was backed by Gov. Phil Murphy (D) and Senate President Stephen Sweeney (D) – after legislative leaders were unable to wrangle enough support to pass the reforms.

The question on the ballot will read:

Do you approve amending the Constitution to legalize a controlled form of marijuana called ‘cannabis’? Only adults at least 21 years of age could use cannabis. The State commission created to oversee the State’s medical cannabis program would also oversee the new, personal use cannabis market. Cannabis products would be subject to the State sales tax. If authorized by the Legislature, a municipality may pass a local ordinance to charge a local tax on cannabis products.”

Assembly Speaker Craig Couglin (D) said putting the issue to votes “is both sensible and equitable.”

“While not our preferred method of legislating, public questions allow voters to affirm or deny massive shifts in public policy,” he said in a statement to NJ.com.

Republican State Sen. Gerald Cardinale, who opposes legalization, called the referendum “a wonderful idea” but warned that more New Jerseyans would die “every year” if the measure were to pass because, she says, traffic deaths have increased in states with legalized cannabis.

“People actually smoke marijuana every day,” said State Sen. Nicholas Scutari (D), a sponsor of the proposal, during the debate “Can you believe it? But until your relative gets arrested over this substance that is widely used in this state and country some people will not understand why this is so important.”

Murphy had included legalization in his campaign platform for governor and, following the failure earlier this year, expanded the state’s medical cannabis program via executive order.

End

Canada’s Cannabis Edibles Market Launches Tomorrow

12/16/2019

Cannabis edibles will finally go on sale throughout Canada tomorrow but consumers in Ontario, Quebec, and Alberta are likely going to have to wait until mid-January, the CBC reports. The delay is due to the provinces running their own distribution systems, needing to test the products before they hit store shelves, and, in Quebec’s case, stricter rules on edibles than all other provinces.

In July, Quebec banned the sale of potent THC-infused candies, confections, and deserts over 5 milligrams of THC per unit and no edible – regardless of potency – can be “appealing to children,” which means no sweeteners, colorants or other ingredients “that could increase the appeal of cannabis extracts.”

Fabrice Giguère with provincial retailer Société québécoise du cannabis, said provincial officials and the retailer “just want to give the industry time to adapt” to the new products and regulations.

Aurora spokesperson Laura Gallant told the CBC that teams at the company “are having sleepover parties at the office to be ready to receive and process orders for shipment.”

“[It’s a] nice way to have some fun with this industry milestone, given that we are ready to go right out of the gate,” she said in the report.

However, Hexo Corp CEO Sebastien St-Louis blamed the “regulatory uncertainty” and “jurisdictional decisions” on the company’s decision to downgrade its 202 sales forecast.

In addition to edibles, cannabis retailers will be allowed to sell concentrates, topicals, and other so-called “alternative” cannabis products.

End

Get the daily briefing