Half of Ohio MMJ Patients Not Using Program

6/24/2019

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Only about half of Ohio’s 42,000 medical cannabis patients have bought products from dispensaries, with most citing high costs as the barrier, according to state figures outlined by the Alliance Review. Currently, just 18 of the 56 state-approved dispensaries are open for business.

Although the high prices are keeping many patients from purchasing cannabis through the state’s licensed dispensaries, Thomas Rosenberger, associate director for the Ohio Medical Cannabis Cultivators Association, said that prices have dropped about 15 percent since the first dispensary opened in January.

According to the report, some patients admit to buying cannabis illegally due to the high costs of the legally-available products, while others say they drive to Michigan – which allows reciprocity for registered patients from other states. Bob Bridges, a patient advocate and Medical Marijuana Advisory Board member, told the Review that medical cannabis prices in Michigan’s more mature market are cheaper, even when factoring in gas. Additionally, for some Ohio patients, Michigan dispensaries are actually closer than any in-state locations.

Last month, the Ohio Board of Pharmacy announced that medical cannabis sales had topped $5.8 million since sales began in January, with dispensaries selling more than 750 pounds of flower. Of the 29 provisional cultivation licenses, just 17 have received their operating certificates, while only two of the state’s 39 producers have received certification to begin manufacturing edibles, tinctures, and topicals.

Earlier this month, the State Medical Board of Ohio delayed a vote on including anxiety and autism to the state’s medical cannabis qualifying condition list, according to an Associated Press report. In May, the board had recommended that the conditions be added to the medical cannabis regime.

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Pennsylvania Announces Clinical MMJ Research Participants

6/24/2019

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The Pennsylvania Health Department has launched a private-public partnership to conduct clinical research on the efficacy of medical cannabis for the 21 conditions that qualify access to the state’s medical cannabis program. According to the agency, the research program is the first of its kind in the nation.

The first three clinical registrants are:

  • PA Options for Wellness, Inc., which will work with Penn State College of Medicine, Hershey
  • Agronomed Biologics LLC, affiliated with Philadelphia’s Drexel University College of Medicine
  • MLH Explorations, LLC, which is affiliated with Sidney Kimmel Medical College at Thomas Jefferson University in Philadelphia

Secretary of Health Dr. Rachel Levine called the research “essential to providing physicians with more evidence-based research to make clinical decisions for their patients,” saying the program positioned the state “on the forefront of clinical research” for medical cannabis.

“It is the cornerstone of our program and the key to our clinically-based, patient-focused program for those suffering with cancer, [post-traumatic stress disorder] and other serious medical conditions.” – Levine, in a statement

The research centers will convene in next month to outline what research they will be conducting, and the potential patient outcomes associated with their studies. All clinical registrants to the program must hold a state-issued medical cannabis grower/processor and dispensary permit and must partner with an approved academic research center.

The announcement comes nearly one year to the day after Gov. Tom Wolf (D) signed a bill amending the medical cannabis law to allow research programs. The research portion of the law had initially sparked a lawsuit by the state’s licensed dispensaries who argued that the research license went beyond the scope of the law. In all, eight medical schools have been approved as Academic Clinical Research Centers under the amendment.

Medical cannabis sales in Pennsylvania began in Feb. 2018 and, according to the Health Department, more than 159,000 patients have been certified to access the program.

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New York Expands Decriminalization, Approves Cannabis Expungement

6/21/2019

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Working past the scheduled close of the 2019 legislative session, the New York State Senate approved legislation Thursday night to expand the state’s cannabis decriminalization language and automatically expunge low-level cannabis convictions. The bill, which is supported by Gov. Andrew Cuomo (D), was approved next by the Assembly early Friday morning before lawmakers finally adjourned for the rest of the year, according to a PIX11 News report.

Lawmakers had also considered an adult-use legalization bill but failed to come to an agreement in time, so the final push for cannabis reform resulted in just an expansion of the state’s existing decriminalization language.

Under current New York law, carrying up to 25 grams of cannabis is considered unlawful possession — a violation resulting in a $100 ticket for the first offense, rising to a maximum fine of $250 for repeat offenses with up to 15 days in jail. The new language reduces the penalty to just a $50 fine for less than an ounce or a $200 fine for one to two ounces; the new bill will also allow for the expungement of minor cannabis convictions.

Pro-reform lawmakers were disappointed that the legalization bill failed but said they will take up the issue again next year, and that the decriminalization expansions were a stepping stone toward reaching that eventual goal.

“We will get there. This is one step on the path. We will get there.” — Sen. Diane Savino (D-Staten Island), in a statement

New York’s original decriminalization bill was established in 1977. Notably, while the old language had decriminalized private possession, the public possession of even small amounts of cannabis was still considered a misdemeanor and an arrestable offense.

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House Votes to Protect State-Legal Cannabis Programs

6/21/2019

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The House of Representatives has approved an amendment to a federal spending bill that would prevent the federal government from interfering in legal cannabis markets. The chamber passed the measure – which is sponsored by Democratic Representatives Earl Blumenauer and Eleanor Holmes Norton, and Republican Tom McClintock – 267-165.

Specifically, the rider blocks the Department of Justice from spending funds to prevent states and U.S. territories from “implementing their own laws that authorize the use, distribution, possession, or cultivation of marijuana.”

Michael Collins, Director of National Affairs for Drug Policy Alliance said the vote was an indication that “the end of marijuana prohibition has never been closer.”

“Now is the time for Democrats to pivot to passing legislation that will end prohibition through a racial justice lens, making sure that the communities most impacted by our racist marijuana laws have a stake in the future of legalization. To do anything less would be to repeat an injustice.” – Collins, in a statement

Blumenauer, the lead sponsor of the amendment and co-founder of the Congressional Cannabis Caucus, said the amendment is “past time.”

“We have much more work to do,” he said in a statement. “The federal government is out of touch and our cannabis laws are out of date. I’m pleased that the House agrees and we are able to move forward.”

NORML Political Director Justin Strekal called the amendment “the most significant vote on marijuana reform policy the [House] has ever taken.”

“Today’s action by Congress highlights the growing power of the marijuana law reform movement and the increasing awareness by political leaders that the policy of prohibition and criminalization has failed,” he said in a statement.

The measure might face a tougher test in the Republican-controlled Senate, which must still approve the amendment before it can take effect.

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Report: Total Cannabinoid Market Has $14.9B Potential This Year

6/21/2019

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Cannabis market investor network Arcview Group and data firm BDS Analytics have, for the first time, included the total cannabinoid market in their annual “State of Legal Cannabis Markets” report and estimate global cannabis sales could reach $14.9 billion in 2019 – a 36 percent increase over last year, according to a CNN overview of the report.

The firms included both recreational and medical cannabis sales, hemp-derived products, including CBD, and CBD-based pharmaceuticals approved by the U.S. Food and Drug Administration.

Troy Dayton, Acrview CEO, attributed the boosted projections to global federal government decisions, including the passage of last year’s farm bill which removed hemp from the U.S. Controlled Substances Act.

“These decisions being made at the federal level put pharmacies and general retailers in the business of selling CBD-based products in all 50 states, which substantially boosted the [projections].” — Troy Dayton, in a statement

The firms predict that CBD sales will hit $20 billion in six years, while both recreational and medical cannabis sales will reach $44.8 billion by 2024 worldwide – assuming some European and Latin American national legalize cannabis for medical or recreational use. The researchers predict at least five states will legalize cannabis for recreational use in the U.S. – Arizona, Maryland, New Jersey, New Mexico, and New York – by 2024.

Two of those state legislatures – New York and New Jersey – did attempt to pass the reforms this session but neither could come to an agreement to pass adult-use legislation.

The analysis also predicts that Canada will have a $5 billion cannabis market by 2024.

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Canada Claims $186M In Cannabis Taxes For First 5.5 Months

6/21/2019

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Canada earned $186 million in excise and general taxes on goods and services directly related to cannabis sales during the legal market’s first five and a half months, according to figures from Statistics Canada. The federal government saw $19 million from excise taxes and $36 million from goods and services taxes while provincial governments pulled in $79 million in excise revenues and $53 million from goods and services taxes.

Cannabis products in the nation are taxed $1 per gram or 10 percent of the pre-tax transaction price; throughout Canada, general taxes on goods and services range from 5 percent in Alberta, to 15 percent in the Atlantic provinces.

In the first quarter of the year, cannabis-derived excise taxes increased 12.4 percent from the fourth quarter of 2018, while general taxes from cannabis-related goods and services rose 68.1 percent.

Brock University business professor Michael Armstrong called cannabis taxation a “tradeoff,” noting that high taxes lead to an increased illicit market.

“Where they do have legal retail, there are lots of taxes that have been piled up – every level of government has tacked on a tax. That makes it really difficult because the legal retailers can’t compete with the black market.” – Armstrong, to Global News

In April, Statistics Canada reported that both the legal and illegal markets have seen a price jump of 17 percent post-legalization, from a combined average price of $6.85 per gram to $8.04 per gram. The average illicit per-gram market price was $6.37 while the highest price for legal cannabis online was $9.99 per gram and $10.73 at retail shops.

Cannabis retailers in Canada will be allowed to start selling edibles, topicals, and concentrates this October but the tax rates for the products has not been announced. In the federal budget proposal, the rates would be based on THC content which is capped at 10 milligrams per package for edibles, and 1,000 milligrams for concentrates and topicals. A Deloitte study published earlier this month suggested that the “alternative cannabis products” market could be worth $2.7 billion annually, with edibles driving $1.6 billion of those sales.

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House Committee Hears Cannabis Industry Testimony

6/20/2019

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The House Committee on Small Business heard testimony by cannabis industry operators on Wednesday about the challenges they face accessing Small Business Administration programs, according to a report by The Hill.

Small Business Committee Chairwoman Nydia Velázquez said the hearing, titled “Unlocked Potential? Small Businesses in the Cannabis Industry,” was aimed to bring attention to a “rapidly evolving” industry that has “small businesses at the forefront.” The Democratic Assemblymember is drafting legislation that would allow cannabis businesses access to SBA programs.

“Despite growing economic opportunities around legal cannabis, factors like federal law enforcement, conflicting rules among the states, and our current banking regulations are hindering the ability for entrepreneurs and small businesses to fully engage in this new industry.” – Velázquez, during hearing remarks, via The Hill

During the hearing, Dana Chaves, senior vice president and director of specialty banking at Florida’s First Federal Bank, said that she thought she was allowed to serve the industry but federal laws prevented her from providing full services, such as small business loans.

“I hope this Committee will develop and pass legislation that expands access to business loans and lending programs under the jurisdiction of SBA for cannabis-related business, many of which are led by aspiring entrepreneurs or are minority or women-owned,” she said during her testimony.

Ohio Republican Steve Chabot, a ranking member of the committee, was skeptical of the industry and warned about the negative effects of cannabis use.

Earlier this month, the Food and Drug Administration held its first hearing related to cannabis products – namely CBD – and in March the SAFE Banking Act, which would give state-legal canna-businesses access to financial services, moved out of the House Financial Services Committee; however Idaho Sen. Mike Crapo, chairman of the Senate banking committee, has not committed to giving that legislation a hearing.

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New York Session Ends Without Legalization Deal

6/20/2019

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New York lawmakers failed to pass any cannabis legislation before the session adjourned on Wednesday night, including their “plan B” – broad decriminalization for possession by adults, the Adirondack Daily Enterprise reports.

“I was asked earlier this week on a radio show if I would settle for decriminalization as a backup, and I said I keep fighting and only ‘tend to give up on hour 20 when there’s four hours left in the session.’ We have now reached ‘hour 20.’ – New York Gov. Andrew Cuomo (D) to the Daily Enterprise

The bill was met with strong resistance by the New York State Sheriff’s Association, the New York State Parents Teachers Association, a statewide physicians lobby, drug treatment advocates, and Smart Approaches to Marijuana – the latter of which spent $10,000 on anti-cannabis billboards in the state and $14,500 on anti-legalization lobbying efforts during the session.

The decriminalization bills introduced at the 11th hour would have allowed criminal records for low-level cannabis-related crimes to be expunged, but lawmakers also failed to pass that bill. Another measure to expand the state’s medical cannabis and hemp programs were never brought to the floor for a vote.

Democratic state Sen. Liz Krueger, the bill’s primary sponsor, said the Democratically-controlled legislature had come “close to crossing the finish line” but “ran out of time.”

“I have no doubt that prohibition is an outdated and irrational policy, and its days are numbered,” she said to the Daily Enterprise.

The bill’s failure to pass was the result of disagreements by lawmakers regarding local control and how the revenues derived from the industry would be spent. The state’s session reconvenes in January.

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Colombia Court Ruling: Public Cannabis Use Is Legal

6/20/2019

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Colombia’s Constitutional Court has ruled parts of President Iván Duque’s 2017 Police Code are unconstitutional, including the ban on public cannabis consumption, according to an L.A. Weekly report. The ruling effectively legalizes public cannabis use in the South American nation.

Cannabis, and other illicit drugs, were decriminalized in Colombia seven years ago and medical cannabis use was made legal three years ago, but recreational cannabis use is still outlawed. Under the medical cannabis law, Colombians can grow up to 20 plants but there is otherwise not a legal consumer market.

Senator Gustavo Bolívar indicated that the ruling was based on “technical legislative errors” rather than a desire to change the law 2017 law.

“The Police Code was put into effect in 2017 as a political attempt to limit and punish cannabis usage after medical use was approved, and many portions of its code are considered onerous and unjustified.” – Bolívar, to L.A. Weekly

In 1994, the nation’s Constitutional Court ruled that punishing drug use violates the right to privacy, an individual’s autonomy and the free development of personality,” which are guaranteed under Article 22 of the United Nation’s Declaration of Human Rights.

“A law can not create general restrictions on freedom; it must be specific regarding time, place and circumstance and subject to reasonableness and proportionality,” the ruling states.

President Duque said while he “accepts and respects” the court ruling, “the free determination of personality is not above the free determination of drug addiction.” He added that police would continue imposing penalties and confiscating cannabis “even if doses are considered legal for personal use.”

The Colombia Legislature convenes today and the report indicates that many expect the body to tackle legalization legislation.

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Health Canada Caps Edibles at 10mg of THC Per Package

6/19/2019

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Health Canada’s new regulations for cannabis edibles, extracts, and topicals set THC caps for food and drink products at 10 milligrams per package and 1,000 milligrams per package for concentrates and topical products.

The packaging rules for edibles forbid the products to be “appealing to young persons” or make any health or nutrition claims. Producing edibles and cannabis in the same facility is also banned to “ensure the safety and integrity of Canada’s food system,” the regulations state.

For extracts, producers are prohibited from using some flavors that would appeal to children and teenagers and from using “sweeteners and colorants, or ingredients that could increase the appeal of cannabis extracts.”

Topical packaging is also banned from including “any claims respecting health or cosmetic benefits on the label.”

Dana Larsen, a legalization activist, and cannabis retailer, called the 10-milligram limit “the equivalent of selling alcohol only in little airline bottles to stop people from getting too drunk.”

“We are treating cannabis 10,000 times more severely than alcohol, which is clearly the greater risk to health and public safety. … All these little portions individually wrapped is really going to create a lot of extra packaging and waste.” — Larsen, to the Vancouver Sun

Larsen added that he has some cancer patients who use 500 milligrams via cannabis suppositories per day and “no one wants to put 50 things up their butt.”

A Deloitte study earlier this month estimated the market for the new products in Canada could reach as high as $2.7 billion and that edibles would comprise the lion’s share of that figure at $1.6 billion.

The new rules take effect Oct. 17; however, Health Canada indicated that products would likely not be available in stores or online until mid-December. Licensed retailers will need to seek an amendment to their licenses to sell all of the new products.

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Minnesota Hemp Farmer Facing Charges for High THC Content

6/19/2019

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The Minnesota hemp farmer who is suing the state over a cease and desist order has been charged with two felonies and one gross misdemeanor after his seized crops tested 10 times higher for THC than the legal limits for hemp, the Twin Cities Pioneer Press reports.

Luis Hummel, owner of 5th Sun Gardens is charged with drug sale and two counts of drug possession in Fillmore County. The criminal charges stem from a traffic stop, during which a county sheriff’s deputy seized hemp-derived products from the driver who indicated they were from Hummel’s farm.

According to the criminal complaint outlined by the Pioneer Press, the driver told the deputy that the products were illegal. The complaint also alleges that Hummel told authorities that he tries to make his hemp products more like cannabis products to “entice the buyer” and that THC levels in his hemp products go up when they are concentrated.

Hummel received the cease and desist letter on May 1 informing him that he was being removed from the state’s industrial hemp pilot program and his license had been revoked for a year. The letter also ordered him to destroy his entire crop. Hummel contended that the individual stopped was not charged with possession and the letter was premature because the products had not violated tests for high levels of THC.

Paul Johnson, president of the Minnesota Hemp Farmers and Manufacturers Association, said Hummel’s crop had tested within the 0.3 percent threshold for hemp when it was evaluated by state regulators. He said the case underscores the need for more specific regulations regarding hemp production, noting that THC levels often rise when hemp is concentrated.

“My concern is that again, it shows how the regulation is not contemporaneous with what is really happening.” – Johnson, to the Pioneer Press

Hummel’s lawsuit against the state argues that the cease and desist and order to destroy the crop violated his due process rights. Hummel had estimated his business is worth $3.5 million.

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A legal, commercial cannabis grow in Washington state,

Cleveland School of Cannabis Expands into Columbus

6/19/2019

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The Ohio-based Cleveland School of Cannabis has expanded into Columbus, marking its first physical expansion after opening two years ago, Crain’s Cleveland reports. The expansion comes three months after the school reported it had tripled its revenues after running in the red for its first 18 months.

The CSC is the only state-approved cannabis school in the state, offering both in-person and online courses in horticulture, dispensaries, and medical applications of cannabis; there is also an “executive” program that combines all three.

In March, the school reported they had graduated 111 students and that another 115 were enrolled in programs. According to the school, 70 percent of its graduates are employed in the industry. According to a CNBC report, cannabis industry wages are 11 percent higher than the national median and job openings rose 76 percent from December 2017 to December 2018.

In March, CEO Austin Briggs indicated that the employment rate for graduates might be higher if students were willing to move but many were waiting for jobs to open up closer to their homes.

In Ohio, the first medical cannabis dispensaries opened in January but the program has been marred by delays and, currently, just four of the state’s 40 licensed medical cannabis processors are operational. Last month, state sales figures showed medical cannabis sales in the state had topped $5.8 million, selling more than 750 pounds of flower to the state’s more than 30,000 patients.

Briggs said the school plans on expanding out of Ohio by 2021, naming New Jersey and Florida as possible destinations.

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Study: California Veterans Replacing Drugs & Alcohol with Cannabis

6/18/2019

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Nearly two-thirds of California military veterans reported using cannabis to treat chronic pain, anxiety, post-traumatic stress disorder, depression, and insomnia instead of prescription medication, according to a study published in the American Journal of Drug and Alcohol Abuse outlined by the Mercury News.

The study was conducted by researchers from the Department of Veterans Affairs, Harvard Medical School and the University of Pennsylvania, surveying 93 veterans who received donations of medical cannabis from the Santa Cruz Veterans Alliance. Seventy-nine percent reported using cannabis to treat both mental and physical symptoms; most of the veterans enrolled in the study – 85 percent male – indicated they preferred smoking cannabis; just 16 percent said they used concentrates. About half said they preferred high-THC cannabis rather than high CBD.

“Given that cannabis use is associated with a much lower dependency potential and risk of overdose compared to other substances with a risk of misuse, this finding could suggest a positive impact of reduced barriers to medicinal cannabis access among veterans.” — Excerpt from the study, published on May 28

Nearly 70 percent of veterans reported using cannabis for chronic pain; 66 percent used it for anxiety; 59 percent for PTSD; 56 percent for depression; and 51 percent for insomnia.

Another 63 percent said they used cannabis to replace “any substance”; while 47 percent said they had replaced prescription medications with cannabis. Thirty percent replaced alcohol with cannabis and 24 percent said they had replaced tobacco with cannabis; another 12 percent of veterans said they used cannabis as a replacement for other illicit drugs.

“Results of the current study suggest that military veterans with reduced barriers to access cannabis could be making both helpful and harmful choices regarding their cannabis use,” the study concludes. “These findings suggest that more guidance on the selection of cannabis-based products in this population is warranted, particularly as barriers to medicinal cannabis access are reduced.”

Seth Smith, Santa Cruz Veterans Alliance’s vice president of communications and public affairs, said the research confirms what the organization has “been seeing on the ground for … coming up on a decade … veterans are not only finding benefits from using cannabis medicinally, but are also using it to replace pharmaceutical drugs that they are being given by the V.A. that they find harmful or more dangerous.”

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New York Gov. Pushes for Legalization at Session’s End

6/18/2019

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New York Gov. Andrew Cuomo is pushing for cannabis legalization as the end of the state’s session nears and lawmakers appear close to striking a deal, New York State of Politics reports.

On Sunday, legislative leaders introduced a legalization measure that does not include a regulated market – similar to what Vermont lawmakers passed last year – but Cuomo prefers the state “do it all together.”

“I don’t think we should do one component now and then come back and do another component. Let’s just do it. We’ve talked about it, let’s make the hard decisions and let’s make them now.” – Cuomo, in a WAMC interview, via NY State of Politics

The major issue, Cuomo said, is for local governments to be able to opt in, or out, of allowing cannabis industry operations.

“What level – is it just county or is it local government?” Cuomo said during the interview. “If a county opts in, must all local governments be included? Second option, it’s the locality that opts in, not the county. … I think there’s a balance we have to achieve here, but I don’t think we can roughshod over local governments, nor should we.”

According to the report, lawmakers appeared close to striking a deal on Friday, but they could not come to an agreement on the details of local control or how the revenues derived from the industry would be spent.

The legalization plan included in Cuomo’s budget – which was ultimately pulled after legislative leaders pushed back – would have sent the monies to a ‘Marihuana Revenue Fund’ after enforcement costs and earmarks for drug treatment programs.

New York’s legislative session ends tomorrow.

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Cannabis Compliance Firm Lists on NASDAQ

6/18/2019

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Cannabis compliance company MJ Freeway has rebranded as Akerna after merging with MTech Acquisition Corp. and will begin trading on the NASDAQ today. It will trade under the KERN and KERNW symbols and is the first such company to list on the exchange.

“As legalization of cannabis expands across the world, we believe it is imperative that businesses, patients, consumers, and governments have the tracking and compliance technology they need to make informed decisions and comply with applicable regulations. We believe Akerna is well suited to meet these needs with the ability to scale rapidly across the world and offer a robust and innovative platform for growing industry demands.” – CEO Jessica Billingsly, in a press release

Following the merger, former MJ Freeway equity holders will own approximately 62.7 percent of Akerna’s outstanding shares of common stock, former MTech stockholders will own 27.7 percent of Akerna’s outstanding common stock, and the investors in MTech’s previously-announced private placement that closed concurrently with the business combination own approximately 9.6% of Akerna’s outstanding shares of common stock.

Scott Sozio, CEO of MTech, said compliance solutions “will underpin the industry’s rapid growth, and serve as a backbone for sustained success.”

“We are very pleased to close this transaction and look forward to capitalizing on the substantial operating and financial benefits we believe the combination will create,” he said in a statement. “From here, we believe we are well positioned to pursue our acquisition strategy to drive transformation for future growth in the regulatory technology sector.”

To date, MJ Freeway, which launched nine years ago, has tracked over $15 billion in cannabis sales. In 2017, the company’s seed-to-sale software suffered two outages which forced companies to keep sales records manually. The company has also encountered issues and delays while implementing its tracking software in Washington state.

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MMJ Company Offering Consumer Credit Card

6/17/2019

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Medical cannabis company Columbia Care has launched its own credit card for patients in New York, with plans to offer the card next in Illinois, the Chicago Tribune reports. Company CEO Nicholas Vita said the service was necessary because the all-cash nature of the industry is “like 1974.”

“We’ve seen what happened when we introduced access to this capital, and it has a huge impact in giving patients access to the products they need and want,” he said in the report.

The company is working with financial institutions in the 12 states it operates to offer the card, which has no fees but a 15.99 percent annual percentage rate — the national average for credit cards in 17.73 percent.

During the card trials in New York, Columbia Care found that customers spent 18 percent more when using the credit card, Vita said, adding that it allows patients who have to travel long distances to a dispensary make less frequent visits. Vita indicated that having a credit card for cannabis purchases also helps normalize the industry.

The all-cash nature of the cannabis industry is nothing new. Cannabis is a Schedule I drug according to federal law, which prevents many financial institutions from serving the industry, including credit card processing services. Morgan Fox, spokesperson for the National Cannabis Industry Association, called it an issue that has “plagued” the sector.

“Since people have been looking for viable alternatives, people have been trying to fill that gap in lieu of better federal policy.” — Fox, via the Tribune

There is a bill in Congress to allow canna-businesses to access financial services without fear of reprisal by federal law enforcement and regulators; however, Idaho Sen. Mike Crapo, the Republican who chairs the Senate Banking Committee, has indicated he may not allow the SAFE Banking Act a hearing in the chamber.

Some states with legal cannabis programs are working toward normalizing banking for the industry on a state level. West Virginia is currently seeking a bank to serve its medical cannabis industry while California’s Senate last month approved legislation to create state-chartered banks to work with both medical and recreational cannabis businesses.

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Virginia AG Calls for Cannabis Decriminalization

6/17/2019

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In an op-ed in the Daily Press on Saturday, Virginia Attorney General Mark Herring called for cannabis decriminalization in the state, asserting that prohibition “is needlessly creating criminals and burdening Virginians with convictions.”

Herring points out that arrests for low-level cannabis possession in the state have increased by about 115 percent from 2003 to 2017 — from 13,000 to 28,000 — and the number of first-time cannabis convictions along have also spiked from 6,500 in 2008 to 10,000 in 2017. Herring said prosecutions and incarcerations associated with cannabis criminalization cost the state $81 million annually “in addition to the staggering human and social costs.”

In the editorial, Herring cites a Virginia Crime Commission, which found that African-Americans represent 46 percent of all first-time cannabis possession arrests made in the state despite only comprising 20 percent of the state’s population. That report estimates that 10,000 arrests could be prevented if Virginia decriminalizes cannabis.

“So what does a more rational, just, and equitable cannabis policy look like in Virginia? It’s a question that will require thought, consideration, and input from a wide range of stakeholders, but the time is right to begin working toward legal and regulated adult use.” — Herring, Daily Caller op-ed, June 15

Herring joins Gov. Ralph Northam in advocating for cannabis law reforms in the state. Northam has previously pushed for state-wide decriminalization and, as Lt. Governor, wrote a letter to the Crime Commission pointing out that the $67 million the state spends per year on cannabis enforcement could create 13,000 pre-k openings.

There are currently two bills in the Virginia Legislature to tax and regulate cannabis sales; both remain in Committee for Courts and Justice.

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University of Connecticut Launches Online Cannabis Horticulture Class

6/17/2019

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The University of Connecticut is bringing its cannabis horticulture class online after more than 400 students — less than half of those interested — enrolled in the on-campus section last semester, the Hartford Courant reports. The online class, Horticulture of Cannabis: from Seed to Harvest, will be available to students nationwide.

The class focuses primarily on hemp cultivation but also focuses on the biochemistry of cannabinoids. UConn Professor Gerry Berkowitz noted that the course is the first of its kind to be offered online by a U.S. university and that, currently, similar classes are only available through for-profit companies. He indicated that many of those classes are not evaluated by an independent, third-party or supported by peer-review science.

“It’s [the online class] all about trying to bring rigor and scholarship to growing cannabis — to understand the basis for why we can and cannot say that applications of this compound, this technique is working, and the basis for all that is we’re trying to have hard science.” — Berkowitz, to the Courant

Berkowitz recommends that students interested in the class have some background in science-related fields; about 100 students dropped the on-campus class last semester after, perhaps, finding it too difficult. He called the current research on cannabis “a complete dark room,” noting that private companies often don’t publish their research and “the government funds nothing” related to cannabis.

He hopes to split the class into introductory and advanced sections next spring and that, along with his colleagues, the college could offer a course on the extraction of organic materials.

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USPS Updates Policies to Allow Hemp Shipping

6/14/2019

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The U.S. Postal Service has updated its Hazardous, Restricted, and Perishable Mail regulations to clarify that hemp – and CBD – products are legal to mail so long as the products comply with local laws and compliance records are maintained.

In April, the U.S. Hemp Roundtable, an industry association, sent a letter to the USPS seeking clarification to the agency’s rules regarding hemp. The organization had included proposed criteria for demonstrating the mailing is compliant, including a signed, self-certified statement that indicates the legality of the products, and test results.

“Once the 2018 Farm Bill is fully implemented, and states begin to propose plans, it is expected to further modify the conditions under which hemp and hemp-based products may be transported.” – USPS, Publication 52 Revision: New Mailability Policy for Cannabis and Hemp-Related Products, June 6, 2019

Private delivery services have their own policies in place. According to the UPS website, the company will ship hemp products that are not in plant form, including CBD products, but “will not accept shipments containing hemp products from any location that sells marijuana or marijuana products.”

FedEx includes “hemp plants, hemp leaves, hemp oil, hemp seed oil and CBD derived from hemp” on its prohibited items list.

The USPS changes come as federal agencies begin to reassess their policies in the wake of last year’s Farm Bill, which removed hemp from the Controlled Substances Act. In April, the U.S. Department of Agriculture released guidance for importing hemp seeds, while earlier this month the Food and Drug Administration held its first-ever hearing on CBD products — the agency, however, did not announce any policy updates.

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Texas Gov. Signs Hemp Legalization Bill

6/14/2019

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Texas Gov. Greg Abbott has signed the hemp legalization legislation that also allows CBD production and sales. The measure was unanimously approved by both legislative chambers, passing the House in April and the Senate in May.

Agriculture Commissioner Sid Miller told the Dallas Morning News that he was “excited” about the reforms, which he called “another tool for farmers that are looking to diversify their farming.”

“Texas will be a leader in hemp production, and we will be submitting our plan and writing rules to follow the 2018 Farm Bill and the law recently enacted in Texas.” – Miller, via the Morning News

The bill’s passage comes nearly two months after the Texas Department of State Health Services removed hemp from its dangerous drugs list.

The reforms require farmers to pay a fee for cultivation licenses and for THC content lab tests. The state can inspect registered farms to ensure they are complying with the law. While the law takes effect immediately, it’s unlikely that the state plan will receive USDA approval for this growing season.

The Department of Agriculture is responsible for overseeing the farms and issuing licenses to grow the crops while all products make for human consumption in the state will be regulated by Texas Health and Human Services.

Texas joins several other states, including Iowa, Connecticut, Hawaii, and Florida, in legalizing hemp production following the passage of the 2018 Farm Bill, which removed hemp from the federal Controlled Substances Act. That law requires state plans to get USDA approval; however, the agency has not yet approved any state-submitted plans.

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Cincinnati City Council Votes to Decriminalize Cannabis

6/14/2019

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The Cincinnati City Council voted on Wednesday to decriminalize possession of up to 100 grams of cannabis within city limits, the Cincinnati Enquirer reports.

The day after the approval, the plan was criticized by Gov. Mike DeWine.

“I don’t think it’s a great idea,” the Republican governor said of the plan to the Enquirer. DeWine also reiterated to the paper that he is “against legalization” of cannabis.

“Some people look at marijuana as just some benign drug, and it’s really not,” he said in the report.

Once the ordinance becomes law, Cincinnati will be the fourth municipality in Ohio to decriminalize cannabis possession, following Dayton, Toledo, and Norwood. Cincinnati Mayor John Cranley has indicated he would not veto the bill.

Under state law, possession of fewer than 100 grams is a misdemeanor, punishable by a $150 fine. Possession of 100 to 200 grams is a jailable misdemeanor offense, and possession of more than 200 grams is a felony in the state. State law does supersede city law; however, police officials told the Enquirer that they would use the city law in prosecutions.

The City Council could consider another proposal by Councilor David Mann that would decriminalize smaller possession amounts. Other council members are working on local legislation to expunge low-level cannabis crimes.

Counselor Christopher Smitherman said that cannabis laws predominately target the city’s African-American communities and create a “permanent underclass.” Smitherman indicated that if his plan is rejected by the council, he would start a ballot initiative petition to put the issue to voters.

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Colorado Reaches $1B in Cannabis-Derived Revenues

6/13/2019

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Colorado’s cannabis industry has raised $1 billion in revenue for the state since legal sales began in 2014, according to state data. To date, cannabis tax, license, and fee revenues is just over $1.02 billion and cannabis sales are over $6.56 billion.

There are currently 2,917 licensed cannabis businesses in the state along with 41,076 individuals licensed to work in the industry.

In a statement, Gov. Jared Polis (D), noted that cannabis revenues help fund public school construction, programs to prevent youths from consuming cannabis, and public health and safety programs.

“Today’s report continues to show that Colorado’s cannabis industry is thriving, but we can’t rest on our laurels. We can and we must do better in the face of increased national competition. We want Colorado to be the best state for investment, innovation and development for this growing economic sector.” – Polis, in a statement.

Tista Ghosh, Colorado Department of Public Health and Environment’s chief medical officer, indicated that more than 50 communities have received cannabis-derived funds to expand local efforts to prevent youths from using cannabis.

“Today, more adults know the laws around retail marijuana, more parents are planning to talk to their children about the risks of marijuana use, and most young women know the danger of marijuana use during pregnancy and breastfeeding,” she said in a statement.

According to Department of Revenue figures, from January to April more than $522.5 million worth of cannabis has been sold in the state and January marked the highest sales in the state since legalization for combined medical and recreational markets.

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Nevada Bans Most Pre-Employment Cannabis Tests

6/13/2019

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Nevada has become the first state to prohibit employers drug testing applicants for cannabis use on a pre-employment drug test, according to an ABC News report. The law, however, does not apply to people seeking public safety jobs, emergency medical technicians, or firefighters.

An amendment to the bill was also added to allow pre-hiring drug testing for operators of motor vehicles or other jobs that “in the determination of the employer, could adversely affect the safety of others.” The caveat was added following objections to the proposal by the Nevada Trucking Association.

Gov. Steve Sisolak, a Democrat, called those exceptions “common sense.”

“As our legal cannabis industry continues to flourish, it’s important to ensure that the door of economic opportunity remains open for all Nevadans.” – Sisolak in a statement, via ABC News

Assemblywoman Nina Neal (D), indicated that she sponsored the legislation because the ballot initiative approved by voters to legalize cannabis in the state “said it needed to be treated the same as alcohol.”

“I felt like we needed to have a policy to deal with it because we had a significant amount of people using on the weekends,” Neal said in the report.

Sisolak also signed legislation to create a Cannabis Compliance Board and Cannabis Advisory Commission in an effort at “reforming and strengthening” the state’s legal cannabis industry and ensure “the economic opportunities it creates are available to all Nevadans,” according to a press release from the governor’s office.

“Our marijuana industry is now a key part of our state economy, and to make sure it stays that way, we must hold it to the highest standard while empowering the industry to continue thriving,” Governor Sisolak said in a statement. “Nevada’s first-ever Cannabis Compliance Board will ensure this critical part of our state’s economy is positioned to become the gold standard for the nation.”

The drug test bill takes effect Jan. 1.

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Researchers Find Evidence of Cannabis Use In 500 BC

6/13/2019

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Researchers in China have found evidence that cannabis was used in mortuary rituals as early as 500 B.C, according to a study published Wednesday in the journal Science Advances. The researchers’ analysis also suggests that the ancient population might have been selectively cultivating cannabis high in THC for their burial rituals, perhaps for mind-altering purposes.

The team found 10 wood brazier fragments at a burial site but noted that their “immediate use was not clear.” After using gas chromatography-mass spectrometry on the wood fragments and burnt stones lining the burial site, they found higher levels of CBN – a cannabis biomarker.

“THC is the most potent psychoactive component in cannabis, but it readily decomposes and oxidizes into CBN if exposed to air, light, or heat. CBD, another biomarker of cannabis, is not psychotropic, and cannabis with a high THC content often contains a low level of CBD,” the researchers explain in the study. “The cannabinoids detected on the wooden braziers are mainly CBN, indicating that the burned cannabis plants expressed higher THC levels than typically found in wild plants.”

They added that wild cannabis plants would contain “relatively equivalent amounts of THC and CBD” and that evidence of CBD degradation were undetected in the burning residues.

“Modern perspectives on cannabis vary tremendously cross-culturally, but it is clear that the plant has a long history of human use, medicinally, ritually and recreationally over countless millennia.” – Robert Spengler, an archaeobotanist at the Max Planck Institute for the Science of Human History, who worked on the study, via the New York Times

The study authors also suggest that their discovery might imply “that the ritualistic ‘smoking’ of cannabis was gradually popularized from the elite class to the common people in the eastern Pamirs in China at least 2,500 years ago,” since those buried at the plot do not appear to be of the upper class.

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