Federal Lawmakers to Propose New Decriminalization Bill

Democratic Rep. Jerry Nadler and Sen. Kamala Harris are introducing a bill to decriminalize cannabis at the federal level and require previous cannabis convictions to be expunged or resentenced, according to a CNBC report. The measure — called the Marijuana Opportunity Reinvestment and Expungement Act, or the MORE Act — is designed to repair “the damage done by the war on drugs.”

The legislation would remove cannabis from the federal drug schedule and allow states to implement their own policies to regulate an industry or allow prohibition to remain on the books. It also prevents federal agencies from denying benefits to citizens found using cannabis, deporting immigrants for cannabis-related convictions, and would establish a 5 percent tax on cannabis products to create grants for minorities and low-income communities.

The bill would establish three funds aimed at so-called reparations for the War on Drugs that would provide job training, legal aid, and community reinvestment grants.

Nadler, a New York Democrat and chair of the House Judiciary Committee, said that cannabis laws are “racially motivated” and have “disproportionately impacted communities of color.”

“It’s past time to right this wrong nationwide and work to view marijuana use as an issue of personal choice and public health, not criminal behavior.” – Nadler, in a statement, via CNBC

Harris, a former prosecutor and current presidential candidate, said in a statement that “marijuana should not be a crime.”

At the federal level, other presidential candidates have introduced cannabis law reform bills including New Jersey Sen. Corey Booker’s (D) Marijuana Justice Act, which contains many of the same provisions as the MORE Act, and Massachusetts Sen. Elizabeth Warren’s (D) STATES Act, which would strengthen the Tenth Amendment to ensure that federal authorities could not interfere with state-approved cannabis programs.

The House Judiciary Committee, which Nadler chairs, would need to clear the legislation before it would move to the chamber for a floor vote. If approved by the House, it would face an uphill battle in the Senate, which is controlled by Kentucky Republican Mitch McConnell. McConnell told The Hill in May that he does not have “any plans to endorse the legalization of marijuana.”

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California Has Seized $30M In Illegal Cannabis Since 2018

Since January 1, California’s Bureau of Cannabis Control and law enforcement agencies have served 19 search warrants and seized more than 2,500 pounds of cannabis and $219,874 from unlicensed shops, the Los Angeles Times reports. Combined with last year’s totals, the state has confiscated about $30 million in illegal cannabis since licensing began in 2018.

The busts include a $2.7 million haul at two unlicensed shops in Costa Mesa, a raid at an unlicensed grow in Trinity County which led to the seizure of 801 pounds of processed cannabis, 12,548 plants, $435,875 in cash, and 15 firearms. Both of those enforcement actions occurred last month.

Lindsay Robinson, executive director of the California Cannabis Industry Association, told the Times that the number of actions by the Bureau is “severely inadequate.” She explained that there should be hundreds of enforcement actions on illegally operating shops but noted that the state “has always struggled with enforcement of the illicit industry.”

Lori Ajax, chief of the Bureau of Cannabis Control, said the agency’s work has been “tremendous … in accomplishing our mandate to develop a comprehensive regulatory system under challenging conditions.”

Those ‘challenging conditions’ likely refer to a recent audit that found the agency is understaffed and strapped for cash. The state Finance Department report released last week found that about two-thirds of the bureau’s staff positions are unfilled – including just 15 of 68 enforcement units – and the agency has collected just $2 million out of an expected $200 million in application and license fees.

“We recognize the importance of enforcement for a strong regulated cannabis industry and continue to partner with local jurisdictions to address issues related to unlicensed cannabis businesses.” – Ajax, to the Times

Earlier this month, Gov. Gavin Newsom (D) authorized fines of up to $30,000 per day against unlicensed cannabis cultivators, distributors, and sellers but did not include in his state budget proposal $10 million the California Cannabis Industry Association had requested for enforcement on illegal operators.

Jesse Melgar, a spokesman for the governor, told the Times that the budget does include “meaningful financial penalties for unregulated activity” that will help aid regulators with enforcement.

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Michigan Announces Social Equity Program Plans

Michigan’s Marijuana Regulatory Agency is cutting fees on canna-businesses in 19 municipalities that were disproportionately impacted by cannabis enforcement under social equity plans, the agency announced on Monday. The law approved by voters in 2016 allows social equity applicants to have fees reduced by as much as 60 percent.

Under the plan, fees will be reduced by 25 percent for individuals who have lived in one of the affected cities for the past five years. Another 25 percent fee reduction will be available to applicants who hold majority ownership in the company, have lived in the affected cities or towns, and also have a cannabis-related conviction – potentially cutting fees in half for some applicants. An extra 10 percent reduction will be available for those who were registered medical cannabis caregivers for at least two years from 2008 to 2017 who also have a cannabis conviction.

The fee reduction would apply to the initial license fee and future renewal fees.

Michigan‘s Social Equity Program identifies communities as eligible using both cannabis-related convictions and poverty rate. Counties where the total number of cannabis-related convictions exceeded the average cannabis-related conviction rate for the state were selected, the agency indicated in a release. From that group, communities were selected in which 30 percent or more of the population lives below the federal poverty level.

The communities include:

  • Albion
  • Benton Harbor
  • Detroit
  • East Lansing
  • Ecorse
  • Flint
  • Highland Park
  • Hamtramck
  • Inkster
  • Kalamazoo
  • Morris
  • Pleasant
  • Muskegon
  • Muskegon Heights
  • Niles
  • Pontiac
  • River Rouge
  • Saginaw
  • Ypsilanti

MRA Executive Director Andrew Brisbo said that the program “will lead the nation in accomplishing social equity objectives” included in the voter-approved legalization law. The agency is planning to send representatives to the 19 cities to explain the social equity plans before the state begins accepting applications for new cannabusinesses on Nov. 1.

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Texas Prosecutors Are Tossing Cannabis Possession Cases

Some Texas cities are dropping cannabis possession cases following the legalization of hemp last month because law enforcement agencies are unable to distinguish between hemp and psychoactive cannabis, casting a reasonable doubt over criminal proceedings, according to a KVIA report.

In response, Gov. Greg Abbott, Lt. Gov. Dan Patrick, House Speaker Dennis Bonnen, and Texas Attorney General Ken Paxton have sent a letter to district and county attorneys urging them to continue prosecuting the cases. Police departments do have the option to test cannabis to determine whether it contains more than 0.3 percent THC; however, those tests are expensive and, for some towns, not worth paying for to prosecute low-level cannabis crimes.

In the state’s 10 most populous counties, only El Paso District Attorney Jamie Esparza has said definitively that he would continue prosecuting cannabis cases with the new hemp law on the books. He told KVIA that, with cannabis arrests, there is usually enough circumstantial evidence to levy charges, such as paraphernalia or other evidence of smoking.

Harris County Assistant District Attorney Paul Fortenberry of the Major Narcotics Division said that most crime labs in the state can’t even measure THC and the new law “requires scientific testing” to determine whether something is considered hemp or marijuana. El Paso Assistant District Attorney Tom Darnold said in a memo obtained by the Texas Tribune that the burden of proof would be on the defendant, not the prosecutor.

“[The new law] allows the defense to raise a defensive issue of, ‘Hey, what you have is hemp, not marijuana.’ If there’s no lab test either way … then really it’s just a circumstantial evidence case, and we can still reasonably satisfy our proof beyond a reasonable doubt.” – Darnold, to the Tribune, via KVIA

At least two counties have approved funds to send substances to private testing laboratories with the proper equipment to test for THC content. The letter sent by Abbot and Legislative leaders indicated that the hemp law gives law enforcement and prosecutors “more tools” because under the law it’s a misdemeanor “for failure to have a proper hemp certificate.”

The hemp law passed the Legislature with supermajority support, which allowed the measure to take effect immediately.

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Florida Police to Stop Detaining for Cannabis Odor

Several law enforcement agencies throughout Florida are being instructed not to detain people simply for cannabis odor because it smells the same as hemp, which was legalized in the state July 1, the Miami New Times reports.

According to an Orlando Sentinel report, sheriff’s departments in Seminole and Brevard counties will no longer make arrests based on odor alone. The Miami-Dade Police Department told the New Times that they are following that policy.

In a memo sent to the New Times, the Police Legal Bureau wrote that searching a vehicle for cannabis in the state now requires “odor plus.”

“Hemp and cannabis look, feel and smell the same, and both can be smoked. Currently, there is no way to distinguish between hemp and cannabis based on plain view or odor alone. Accordingly, officers can no longer search a vehicle based solely on the odor of cannabis. Now you must articulate additional factors that lead you to believe that the substance is illegal cannabis, based on the totality of circumstances.” – Police Legal Bureau memo via the New Times

According to the memo, “odor plus” includes signs of impairment, information regarding illegal activity prior to the stop, and admission of guilt.

In a memo sent to law enforcement agencies in Seminole and Brevard counties by State Attorney Phil Archer, the State Attorney’s Office “will require a laboratory test result before the filing of any cannabis related charge.”

“Officers should be able to articulate additional factors in addition to the smell or look of the substance, including such things as the impairment of the person and any admissions or statements that may be made,” Archer wrote in the memo, noting that crime laboratories in Florida do not have the capability to test just whether something contains THC.

In 2015, Florida decriminalized possession of up to 20 grams of cannabis and voters approved medical cannabis legalization in 2016.

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Utah Awards 8 Medical Cannabis Cultivation Licenses

Eight companies have been awarded medical cannabis cultivation licenses in Utah, two short of the maximum allowed under the law as officials look to avoid an oversupply, the Associated Press reports. The announcement comes three days later than officials had originally predicted.

The winners include Standard Wellness Utah and Wholesome Ag., who have grown cannabis in Ohio and Connecticut, and Oakbridge Greenhouses, who currently grows hemp for the state.

Christine Stenquist, director and founder of advocacy group Together for Responsible Use and Cannabis Education, or TRUCE, told the AP that she is concerned that eight cultivators won’t be able to meet high patient demand in Utah. The Department of Agriculture and Food estimates patient counts around 100,000, while Justin Arriola, a board member with Together for Responsible Use and Cannabis Education, said the group anticipates patient counts of 180,000.

“We’ve waited years for these big steps to happen. But we’re not giving the patients the care they need with restricted grows and dispensaries.” — Stenquist, to the AP

The license winners still need to pass background checks before their contracts are finalized. Tom Paskett, the executive director of the Utah Cannabis Association, told the AP that he was optimistic about the state’s choices because many of them have strong reputations in the industry.

“Companies will have to work together to have clean facilities and a strong public presentation,” Pasket said in the report. “This program needs to be perfect for Utah, and I think we have a good group of people to accomplish that.”

In all, 81 companies applied to grow medical cannabis in the state. Voters approved the law last year but it was changed by lawmakers to ban edibles and home growing and limit the number of qualifying conditions for the program.

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Ooze Kettle Silicone Hybrid Bubbler/Dab Rig Review

The Ooze Kettle Silicone Glass Hybrid Bubbler/Dab Rig from OozeLife.com is a miniature bong/dab rig combo that works great as an all-rounder smoking apparatus for your home, office, or back porch — or really anywhere else.

The bubbler apparatus is comprised of a glass container wrapped in a durable, colored silicone casing that includes a stem for the bowl piece and a draw shaft for breathing.

The silicone doubles as both a comfortable grip for the piece and as protection for the glass interior. We still wouldn’t recommend dropping this piece on the ground, but we’d give it a significantly higher chance of survival than a traditional glass bong or dab rig. A wide base on the silicone attachment protects the bottom of the glass and provides a sturdy base when standing on a flat surface — the review team was especially excited upon realizing that the silicone base also functions as a suction cup, so if you press the bubbler onto a smooth, flat surface (like a glass table or glossy countertop) the piece will actually stick there. This makes it harder to tip over, even if someone bumps the table.

The review bubbler we received came with two bowl pieces: one for a classic bong experience and another to turn the piece into a dab rig — note, however, a dabbing tool does not come included. The stem holding the bowl piece, however, does have a unique and very handy magnetic strip that can hold your dabbing tool to the side of the silicone, which helps prevent your table getting sticky from any leftover concentrates.

The pipe itself works great. It may not be a massively customizable four-foot powerhouse of a bong but the silicone downstem contains several percolation holes and the bowl piece itself can be easily swapped out if you have a preferred size or look. At just a $50.00 price tag, the most one could expect is a high-quality and effective product that offers comfort, consistency, and longevity — and that’s exactly what you get!

Perhaps the best argument for the Kettle Silicone Hybrid piece, however, is that this miniature bong is an absolute breeze to clean. Nearly every part of this water pipe can be easily removed, cleaned individually, and (except for maybe the glass bowl piece and silicone downstem) is dishwasher-safe.

Visit the product listing on OozeLife.com to see the wide selection of available colors or to make a purchase today!

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Ohio Legislature Approves Hemp & CBD Bill

The Ohio Legislature has approved a bill legalizing CBD sales and implementing a pilot program for industrial hemp cultivation while removing hemp from the state’s drug code. The bill specifically allows CBD-derived cosmetics, dietary supplements, pet products, and products for human consumption.

The measure allows universities to enroll in the hemp program but does not require farmers to partner with institutions to obtain a license for growing the crop. Like the majority of other state-approved programs, the state allows only hemp crops containing no more than 0.3 percent THC, requiring annual random inspections of farms to ensure the crops do not exceed that threshold, according to the bill text. The measure includes a misdemeanor penalty for a licensed cultivator growing so-called hot crops, which includes a $150 fine; all subsequent violates carry a $250 fine and up to 30 days in jail.

The measure unanimously passed the Senate and was approved in the House 89-3 on Wednesday. Both chambers are led by Republicans.

Republican Sen. Steve Huffman, a co-sponsor of the bill, told Fox 8 that the reforms represent “an incredible opportunity” for the state’s farmers “to help diversify their crops.”

“It is important to understand that hemp is not marijuana, it is much more versatile and lacks an appreciable amount of THC to cause any psychotropic effects.” – Huffman, to Fox 8

Last year, the state Pharmacy Board declared CBD a controlled cannabis product under the state’s law. The new law will allow the state’s retailers to immediately begin selling CBD once its signed by Gov. Mike DeWine. According to multiple news reports, DeWine is expected to sign the bill.

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Canada Approves Second Stoned Driving Saliva Test

The Canadian government has approved a second device to test the saliva of drivers for recent cannabis use in an effort to determine whether the driver is impaired, the National Post reports. The approval of the Abbot SoToxa by Justice Minister David Lametti comes nearly a year after the government approved the Drager DrugTest 5000.

According to the government notice announcing the device’s approval, the saliva tests will not determine whether a driver is impaired but “presumptively confirm the presence of the drug.” The SoToxa is only able to detect THC.

“… And, combined with other observations made by the police officer, may provide grounds for the investigation to proceed further, either by making a demand for a drug recognition evaluation or for a blood sample,” the government’s notice states.

The roadside drug-impairment testing law took effect in December 2018 but the devices are not currently widely used in the nation due to skepticism from some police forces and the promise by impaired-driving attorneys to challenge the results of the devices, citing false positives and arguing that they don’t work well in cold weather.

Cst. Stephane Fontaine, the impaired driving countermeasures coordinator for the Winnipeg police, told the Post that the department isn’t using the devices outside, but rather in temperature-controlled environments, such as inside the police cruiser or a mobile unit at a checkpoint.

“The key is not so much that the temperature outside is cold, it’s ensuring that the equipment that you’re using is in the proper operating temperatures. So you’re not going to find the device and the testing strips in the trunk of our cruiser car.” – Fontaine, to the Post

The Winnipeg police have seven devices and are field-testing them before using them to make arrests.

In Canada, the drugged driving law sets a standard of 2 nanograms of THC per milliliter of blood for a summary offense and 5 nanograms per milliliter for a more serious offense – but the blood must be drawn within two hours of driving.

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A man holds a lighter to a loaded bowl of ground cannabis.

Most Minnesota PTSD Cannabis Patients Report Reduced Symptoms

More than 70 percent of Minnesota medical cannabis patients enrolled in the program for post-traumatic stress disorder report that their symptoms are reduced, according to a state Department of Health survey outlined by the Star Tribune. The survey found a “clinically meaningful” reduction on a screening tool that measures symptom severity in a similar percentage.

Minnesota added PTSD to the state’s medical cannabis regime in 2017 and now 18 percent of the state’s 17,202 qualified patients are enrolled for the condition. PTSD represents the second largest number of medical cannabis patients in the state behind intractable pain.

The survey was limited by a lack of comparison group as only half of the 751 people initially surveyed about their medical cannabis use for PTSD followed up on the subsequent survey. The survey also didn’t poll the type of cannabis being used and what THC content the products contained. Just 4 percent of respondents said they received little benefit from cannabis for their PTSD symptoms and about 20 percent reported mild side effects like increased appetite and dry mouth.

“My family sees a night-and-day difference, and it’s easier to communicate with them. I’ve since found a part-time job with flexible hours to work around starting college. … The only hope I have is that it becomes more affordable, as I’m barely able to afford it now.” – An anonymous respondent in the Minnesota Department of Health Survey

One respondent called medical cannabis “a life-changer,” reporting “better sleep [and] better appetite” and reduced anger.

Dr. Tom Arneson, a research manager for the state’s medical cannabis program, indicated to the Star Tribune that medical cannabis program enrollees were also “more willing to participate in psychological therapies, or feel like those therapies are more effective for them.”

The state is currently accepting petitions to add conditions to the state regime.

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Audit Finds California Cannabis Regulators Understaffed, Short on Cash

About two-thirds of the 219 staff positions in California’s Bureau of Cannabis Control are unfilled, making it difficult for the agency to conduct investigations of companies under its purview, according to a Finance Department audit. Responding to the audit, the cannabis regulation agency said that “unlike most state government programs, the bureau was simultaneously starting from the ground up on multiple fronts.”

The Finance Department report found that just 15 of 68 enforcement unit positions had been filled, which has “severely impacted” the bureau’s ability to perform site inspections and process complaints” and has hindered the work of cannabis testing laboratories.

The bureau is also facing a major cash shortage according to the audit. The bureau expected to collect about $200 million from application and license fees by June 30; however, as of January, regulators had only collected $2 million.

The audit also found communication problems between the three agencies that regulate cannabis in California – the bureau, CalCannabis Cultivation Licensing, and Manufactured Cannabis Safety Branch.

“Enforcement unit staff stated a central contact from the other licensing authorities has not been established,” the audit states.

Christopher S. Schultz, chief deputy director of the Bureau of Cannabis Control, wrote in response that he welcomed the audit’s recommendations for the agency to “strengthen its operations” and that the report recognized that the agency had to develop a complex regulatory system “under challenging conditions.”

The audit reports that the bureau has issued just nine annual retailer licenses while 915 businesses are still operating under temporary permits; two annual distributor licenses while 1,365 businesses are using temporary licenses; and nine annual event organizer licenses, with 92 businesses operating under their temporary licenses. The bureau has not issued any annual licenses for testing labs or micro-businesses, while 49 labs and 289 microbusinesses are doing business under their temporary permits.

The Finance Department report indicates the bureau has received 5,680 total complaints about cannabusinesses and have processed 3,232 and closed 2,582 – leaving 2,448 in progress as of Jan. 31.

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Aurora Wins Italian Medical Cannabis License

Canadian cannabis company Aurora Cannabis Inc. has been selected as the only winner of a license to provide medical cannabis in Italy. The firm beat out five other companies who applied with the Italian government for the position.

Aurora won Italy’s first tender in January 2018 and has since been providing the nation with medical cannabis products. The new two-year contract requires Aurora to supply a minimum of 400 kilograms (about 882 pounds). The products are imported through the Canadian company’s wholly-owned European subsidiary Aurora Deutschland but are cultivated at its Canadian facilities, according to a press release.

In Italy, medical cannabis is distributed through pharmacies. Medical cannabis is purchased through an agency within the Italian Ministry of Defense. The Italian Army also cultivates medical cannabis but in 2017 the program only produced 220 pounds for the entire nation. The end product is reportedly low quality but over the next two years the Army’s cannabis production is expected to triple and recent health legislation allocated $2 billion in funding for the program.

Under Italy’s program, medical cannabis is approved for patients suffering from severe conditions including chronic pain; spasms associated with pain, such as those suffering from spinal cord lesions or multiple sclerosis; patients undergoing chemotherapy, radiotherapy, and HIV therapies; drug-resistant glaucoma; and Tourette’s syndrome. Additionally, medical cannabis use is permitted in cases that require appetite stimulation, such as cachexia and anorexia. The guidelines allow for medical cannabis use when all other conventional treatments fail.

The government does not make available the program’s patient count figures. Medical cannabis was legalized in Italy in 2013.

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Curaleaf Set to Acquire Grassroots for $875M Cash & Stock Deal

Curaleaf Holdings Inc. has agreed to acquire GR Companies Inc., better known as Grassroots, in an $875 million cash and stock deal, the company announced on Wednesday. According to the firm, once the deal is finalized, Curaleaf will become the world’s largest cannabis company by revenue and the largest in the U.S. “across key operating metrics.”

Throughout the Midwest, Grassroots possess 61 dispensary licenses – 20 are currently operating – and 17 cultivation and processing licenses. The combined company will hold 131 dispensary licenses, 68 operational locations, 20 cultivation sites, and 26 processing facilities. The deal gives Curaleaf its first presence in Illinois – which legalized cannabis for adult use last month – Pennsylvania, Arkansas, Michigan, North Dakota, Oklahoma, and Vermont.

Joseph Lusardi, CEO of Curaleag said the deal “significantly accelerates” the company’s “expansion strategy and … reach across the medical and adult-use markets.”

“In addition, it enhances the depth of our retail and wholesale platform across the country. By leveraging our scale, as well as our market leading capabilities and expertise, we will continue to deliver value for our shareholders.” – Lusardi, in a statement

Under the terms of the deal, Curaleaf will pay $75 million in cash, 102.8 million subordinate shares of Curaleaf, and $40 million in Curaleaf shares priced at the 10-day volume-weighted average price prior to the transaction’s closing.

Mitch Kahn, co-founder and CEO of Grassroots, will join the combined company’s board. Grassroots co-founders Matt Darin and Steve Weisman will join Curaleaf’s senior management team.

“This acquisition will enable us to give our patients and retail partners greater access to products that adhere to the highest standards of quality and reliability, and our employees the opportunity to be part of a best-in-class operator,” Kahn said in a statement.

In May, Curaleaf announced an agreement to acquire Select brand parent company Cura Partners, Inc in an all-stock deal worth nearly $1 billion. Cura is based out of Portland, Oregon and its products are sold at more than 900 retailers in the U.S.

Editor’s note: An earlier version of this article’s headline mistakenly referred to Grassroots as Greenleaf.

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Senate Committee Schedules Landmark Cannabis Banking Hearing

A key Republican-controlled Senate committee plans to investigate the lack of banking services for state-legal cannabis companies, Tom Angell reports for Forbes.

The Senate Committee on Banking, Housing and Urban Affairs scheduled a hearing for next week to consider the SAFE Banking Act, legislation that would install federal safeguards allowing financial institutions to work with state-legal cannabis businesses.

The SAFE Banking Act, which was first introduced in the House by Reps. Ed Perlmutter (D-Colorado) and Denny Heck (D-Washington) and in the Senate by Sens. Jeff Merkley (D-Oregon) and Cory Gardner (R-Colorado), would be an important step away from the industry’s current cash-only environment. The legislation has since signed on 206 cosponsors in the House (nearly half of elected U.S. Representatives) and 32 cosponsors in the Senate.

The scheduling move is an about-face for committee chair Sen. Mike Crapo (R-Idaho), who said in April that, because of cannabis’ federally illegal status — cannabis remains a Schedule 1 substance under the federal Controlled Substances Act — he could not commit to giving the banking bill a hearing. The bill, however, is now set to become the first piece of federal policy proposing major cannabis reforms ever considered by a U.S. Senate committee.

In June, bankers began pressuring Sen. Crapo to consider the legislation, arguing that the issue is maintaining safety in a lucrative, cash-based industry — not just the plant’s legal status.

The banking bill already passed through the House Financial Services Committee by a 45-15 vote in April but has not yet been considered by the full House.

According to a spokesperson for Rep. Perlmutter, “House Democrats have a robust agenda which has made it tough to get time on the legislative calendar. But as we continue to talk with people, we keep gaining more and more support and look forward to a strong vote on the floor of the House soon.”

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Cannabis Café Approved Unanimously by West Hollywood Officials

Officials in West Hollywood, California have unanimously approved plans by Lowell Farms for a cannabis café, NBC Los Angeles reports. The café will allow cannabis to be consumed on the premises – including smoking – and will serve food.

In order to net the approval, the business operators promised that they would install an air filtration system like those used by casinos. Alcohol will not be allowed in the café as the law approved by voters in 2016 prohibits cannabis and alcohol consumption at the same site.

Initially, the café’s menu will not include THC or CBD-infused food, co-owner Sean Black told the Hollywood Reporter.

“We’re trying to be conservative in our interpretation of the laws; we’re waiting for the state and county to update their laws and work out the nuances for licensing, before we infuse food live on premises.” – Black, to the Reporter

Lowell is the first California cannabis business to receive a license for social consumption. The city announced last year that they would make just eight social use licenses available and more than 300 businesses applied.

West Hollywood is the first California municipality to offer social-use licenses. Officials in San Diego, California are considering allowing cannabis consumption lounges, but have not yet approved the plan.

In March, regulators in Alaska signed off on social-use rules becoming the first state to allow on-site consumption. Voters in Denver, Colorado approved a ballot initiative for social consumption in 2016.

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Study: Hemp Could Help Prevent Bee Die-Off

A new study published in the journal Biomass and Bioenergy suggests that hemp could play a role in maintaining bee diversity and help prevent bee die-off. The study comes on the heels of beekeepers reporting to the U.S. Department of Agriculture a 40 percent loss of their colonies over the last year.

The Colorado State University Department of Soil and Crop Sciences researchers found that 23 different genera of bees were found on flowering hemp plants “demonstrating that hemp in the agroecosystem supports pollinators.” Three genera – including the European honeybee – represented 80 percent of the total abundance on flowering hemp.

The researchers note that while “hemp does not produce any nectar, the pollen-rich nature of the flowers can make hemp an ecologically valuable crop.”

“As cultivation of hemp continues to expand, we expect insect pests on hemp to also become prevalent. Our results documenting bee diversity in flowering hemp provides the impetus for the development of integrated pest management plans that protect pollinators while controlling pests.” — Excerpt from the report via Biomass and Bio Energy, March 2019

The hemp crops were being cultivated in northern Colorado, between the end of July and the end of September when, according to researchers, there is “a dearth of pollinator-friendly crop plants in the region” which makes hemp flowers “a potentially valuable source of pollen for foraging bees.”

“Industrial hemp can play an important role in providing sustained nutritional options for bees during the cropping season,” the authors wrote, noting that hemp is wind-pollinated, dioecious, and staminate – all of which is attractive to bees.

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Pennsylvania’s UScienses Now Offering Medical Cannabis MBA

The University of Sciences in Philadelphia, Pennsylvania is now offering a Master of Business Administration for medical cannabis education, the Philadelphia Enquirer reports. The program, offered by the USciences Substance Use Disorders Institute, is the first MBA program of its kind in the nation.

Andrew Peterson, executive director of the USciences Substance Use Disorders Institute, told the Enquirer that the program is “concentrated on the pharmaceutical and health care industries, where medical cannabis fits very nicely.”

The institution is partnering with Denver, Colorado-based Franklin Biosciences to help develop the program. Franklin operates Beyond/Hello medical cannabis dispensaries in Pennsylvania.

“We’ve already gotten interest from existing students. I don’t think we’ll get hundreds enrolling at the start, but we’ll get a good class. We usually enroll about 15 to 20 people in these classes. I think we’ll hit that target.” – Peterson, to the Enquirer

USciences will offer four classes online including Introduction to the Medical Cannabis Industry; Finance and Regulation of the Cannabis Industry; Cannabis Marketing and Sales; and a course wherein a team of students will create a project, write a business plan, or develop a product.

Each two-credit course costs about $2,000 and registration has already started.

USciences is the latest traditional higher education institution in the U.S. to offer a cannabis-centric degree program or course. Last month, the University of Maryland School of Pharmacy announced it will offer a master’s degree program in medical cannabis, while the University of Connecticut said it would bring a cannabis horticulture class online after the on-campus version overenrolled.

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FDA Plans to Expedite CBD Regulations

The Food and Drug Administration plans on expediting CBD rules and regulations, potentially by the end of summer or early fall, according to Dr. Amy Abernathy, the principal deputy commissioner and acting chief information officer.

“We are enthusiastic about research into the therapeutic benefits of CBD products but also need to balance safety. To understand the breadth of issues and gather data on safety we have conducted a public hearing, reviewed the medical literature, and have an open public docket.” – Abernathy, via Twitter

Abernathy notes that the agency heard testimony from more than 100 speakers at the May 31 public hearing on CBD policy and the public docket on the issue has more than 3,400 comments.

The previous update provided by the agency last month offered no insight into the FDA’s plans to regulate the cannabinoid but said they would apply a “rigorous and science-based approach” in crafting the rules and regulations.

The authors – Abernathy and Lowell Schiller, principal associate commissioner for policy – did express concern that  “widespread availability in products like foods or dietary supplements could reduce commercial incentives to study CBD for potential drug uses.”

The FDA approved GW Pharmaceuticals’ CBD-based medicine Epidiolex last year. During the May hearing, a representative from Greenwich Biosciences testified that at least one study found that CBD is potentially toxic to the liver; however, in that study, mice were given doses that far exceed any reasonable amount – the human equivalent of 42,050 milligrams, according to the CED foundation.

The public comment period on CBD closes today.

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Utah Delays Medical Cannabis Cultivation Licenses

The Utah Department of Agriculture and Food is delaying the announcement of the winners of the state’s medical cannabis cultivation licenses, the Associated Press reports. Officials had originally indicated that their decision would be announced July 15.

In all, the state received 81 applications for the 10 available growing licenses; officials have not said how many applied to process medical cannabis products under the law approved by voters last year. The state accepted applications from both in- and out-of-state farmers and entrepreneurs but officials told the AP that in-state applicants would be awarded extra points during the review process.

Cultivation applicants paid a $2,500 application fee and those awarded a license must pay $100,000 annually to keep it. Under the law, outdoor cultivators will be allowed to grow up to 4 acres, while indoor grows are limited to 100,000 square feet.

State officials expect 100,000 patients to sign up for the program but Melissa Ure, a senior policy analyst with the state Department of Agriculture and Food, said that estimate is more than double what the agency expects. She indicated that if all 10 cultivators were growing at the maximum limits, there would be an oversupply.

Justin Arriola, a board member with Together for Responsible Use and Cannabis Education, said the state’s estimates are low and his group anticipates patient counts of 180,000. He said, at that rate, Utah cultivators would not be able to meet demand.

Richard Oborn, director of the state health department’s Center of Medical Cannabis, projects revenues from the medical cannabis program to reach $5.4 million in 2020 and $16.2 million in 2021.

The state has not announced when they would identify the cultivation license winners.

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Oregon State University Launches Hemp Research Program

Oregon State University has launched a Global Hemp Innovation Center which encompasses over 40 faculty members from 20 disciplines, the Daily Barometer reports. The researchers come from 10 of the university’s research and extension centers around the world.

OSU Professor Jay Noller told the Barometer that the 2018 Farm Bill – which removed hemp from the federal drug schedule – opened the door for hemp research and that there currently are undergraduate and graduate students already researching the crop.

“It has been overwhelming, our email box is rather full, people wanting to engage with the center, and most of that has been positive. There has been a small amount of negative responses from people who believe it is marijuana. Hemp is in the same genus as marijuana, but it does not have the psychoactive properties of marijuana.” – Noller, to the Daily Barometer

Faculty members Dr. Sabry Elias and Dr. David Stimpson have already started researching the viability of hemp seeds at the Oregon State Seed Laboratory. Elias indicated the studies include “assessing their planting value” and “dormancy levels in hemp seeds and methods of breaking it.”

Stimpson said the breaking study is an effort to “report the maximum potential germination for any given seed lot.”

Much of the research is currently being conducted at OSU extensions in Serbia, Bulgaria, and China, Noller said.

“The OSU Global Hemp Innovation Center has at its focus a great symbiosis that works around the world and is the nation’s largest hemp research center,” Noller said in the report. “We are really in a position to be a national leader, working with other universities, providing leadership, and helping move the nation forward with this important crop.”

Open positions for the research program are available via the OSU job website.

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Canadian Hemp Production Expected to Double This Year

Hemp production in Canada is expected to double this year from 41,200 acres in 2018 to 82,500 this year, according to Statistics Canada figures outlined by the Calgary Herald. Health Canada, though, has not released figures for how many licenses have been issued for exactly how many acres. 

Ted Haney, executive director of the Canadian Hemp Trade Alliance, told the Herald that most of the new applicants are first-time hemp farmers.

“Hemp’s been grown in Canada for 20 years, but it was always sort of culturally viewed as a crop that’s not part of the mainstream. There was always that attitude of, ‘that guy grows pot,’ Today, like chickpeas, lentils or quinoa, it’s just another one of the hot options out there. It’s increasingly being looked at as a mainstream crop.” – Haney, to the Herald

The increase in first-time cultivators is likely due to regulations allowing CBD extraction, Haney said, and that canola exports remain down due to an ongoing ban on imports of the crop in China.

Will Van Roessel, an Alberta-based farmer and seed producer, told the Herald that CBD farmers are seeing a lot of investment from outside the agricultural industry. Van Roessel called the outside investments “a bit concerning” because some investors might have “unrealistic expectations.”

“They’re getting farmers to grow for them but they haven’t even built a processing plant yet to deal with the harvest of this crop,” he said in the report. “These farmers are taking a significant risk that by the time they’re ready to harvest their crop, there won’t be anybody there to take that crop and pay for it.”

In May, Statistics Canada reported that farm revenues in Alberta have dropped 68 percent since 2006.

In February, licensed producer Tilray purchased hemp food maker Manitoba Harvest for $317 million — the company’s largest acquisition to date. Tilray indicated at that time that they hoped to enter the U.S. market offering hemp-derived CBD products produced by Manitoba Harvest. Manitoba’s CEO Bill Chiasson said the goal was to produce CBD tinctures, sprays and gel caps.

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Poll: 48% of UK Adults Support Legalization

Nearly half of British adults now support broad cannabis legalization with just 25 percent opposed, according to an Independent report. The poll, commissioned by the Conservative Drug Policy Reform Group (CDPRG), found that 48 percent of adults in England supported legalization — a five-point increase from a YouGov survey last year.

Another 77 percent of poll respondents supported medical cannabis legalization and about the same number said they would consider using medical cannabis treatments if there was strong evidence to its benefits.

About one in four respondents believed that patients prescribed medical cannabis products should be allowed to grow their own; another 22 percent said people should be able to grow their own cannabis plants for personal use.

One in three of the 1,690 polled admitted to trying cannabis. 

Rob Wilson, the CEO of the CBPRG and a former minister for civil society, said the poll showed that there is a “clear and growing appetite” for drug policy reforms in the UK.

“This survey shows the government and politicians are significantly behind the public’s thinking. … It illustrates the widening gulf between the stubborn, decades-old policies of blanket prohibition and the developing attitude of millions of voters willing to apply new approaches focused on improving harm reduction and healthcare outcomes.” — Wilson, to the Independent

Last November, the National Health Service legalized some cannabis-based medicines for a limited number of conditions; however, according to the Independent, the health agency has issued virtually no prescriptions under the program.

In 2017, the Liberal Democrats added legalization to their platform. According to research by the party, 87,247 cannabis-related police caseloads were opened in 2015, equaling an estimated 1,044,180 police hours and £31 million (more than USD$40 million) in enforcement

Seventy-nine percent of the CBPRG poll respondents said the government is struggling to deal with the nation’s drug problems while 70 percent said prohibition failed to reduce harm.

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West Virginia Opens 2nd Cannabis Banking Round After 1st Round Fails

The West Virginia Treasurer’s Office has canceled and reissued its request for proposals for financial institutions to serve the state’s medical cannabis industry once it’s up and running, according to a News & Observer report. The agency rescinded the request after none of the five applicants who did apply met all of the requirements. 

Republican Gov. Jim Justice signed the banking legislation in April; later that month, the Treasurer’s office announced they were accepting applications for the program.

Del. Mike Pushkin, a Democrat, who championed the medical cannabis law, told the News & Observer that the delay would push back the timeline for the program’s rollout another few months and said, “it’s not such a big deal.”

“These things happen a lot when we’re bidding out to vendors in state government — that people don’t meet all of the mandatory requirements of that bid. It’s not uncommon. What’s uncommon is that it’s a bid that we’re watching so closely.” – Pushkin, to the News & Observer 

However, Department of Health and Human Resources spokesperson Allison Adler said late last month that it will take two or three years before patients have access to medical cannabis products in the state.  Office of Medical Cannabis director Jason Frame told the News & Observer that they “have a goal of two years from the time a banking solution is in place” to get medical cannabis products in the hands of patients.

The law passed in April of 2017 had an expected rollout date of July 1, 2019; however, Frame said that wasn’t mandatory and the agency is still putting together regulations and other work to get the program ready for patients.

“We’re going to have a web-based permitting system,” Frame said in the report. “We’re in contract right now, for the design of that system. We’re hiring staff, we’re implementing policy and procedures and designing those procedures.” 

The new round of bids to offer banking for the industry is open until the end of the month.

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Ohio Regulators Investigating Two Medical Cannabis Companies

Two Ohio medical cannabis companies are accused of lying on their applications and violating the state’s industry rules, Cincinnati.com reports. The Board of Pharmacy claims that Greenleaf Apothecaries transferred ownership of the firm without state approval, or mispresented facts on its dispensary application. The agency accuses Harvest of Ohio LLC of lying on their application claiming that they were an “economically disadvantaged group.”

Greenleaf was awarded five dispensary licenses and announced in December of last year that it had a management agreement with New York-based Acreage Holdings. The state’s medical cannabis rules ban ownership transfers until after one year of operation.

Pharmacy board attorney Erin Reed indicated that the agency does allow dispensaries to make small ownership changes in certain situations, such as adding an employee with a financial stake in the company.

“Folks are coming to us with their challenges we’re doing everything we can to help them work through it. We are certainly balancing the need to discipline against patient access.” – Reed, to Cincinnati.com

According to the report, in December 2018 Acreage agreed to loan Greenleaf $8 million to build out its cultivation facility, $5.5 million for processing, and $10.5 million for its five dispensaries. In exchange, Greenleaf agreed to sell all its interests to Acerage when the state allowed.

In an April report, Acreage said it was acting in an advisory capacity and Greenleaf maintained “operational control.”

Tom Haren, an attorney for Greenleaf, said the agreements with Acreage came after the company had submitted its dispensary applications.

“Greenleaf is obviously frustrated by the board’s decision to issue these meritless notices, which have unnecessarily delayed the opening of three of the highest scoring dispensaries – in three of the state’s highest population centers – at a time when too many Ohio patients lack access to the medicine they need,” Haren said in a statement to Cincinnati.com.

Harvest of Ohio had claimed that 51 percent of the business was owned by Ariane Kirkpatrick, an African-American businesswoman in Northeast Ohio. The state’s law required 15 percent of all licenses to go to social equity applicants – African-Americans, Native Americans, Hispanics or Latinos, or Asians. However, that portion of the medical cannabis law was struck down by a court last year.

According to court documents obtained by Cincinnati.com, Harvest claims they have a “unique way of organizing an LLC … with ownership that is only minimally from an economically disadvantaged group.”

The board believes the company “committed fraud, misrepresentation, or deception in furnishing information” on the application.

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