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L.A. City Council President Calls for Retail Cannabis Licensing Redo

11/01/2019

Los Angeles City Council President Herb Wesson this week called on city regulators to not approve any new retail cannabis licenses, suggesting the latest licensing round — which kicked off in September — has been flawed from the start, the Los Angeles Times reports.

In a letter, Wesson urged the Los Angeles Department of Cannabis Regulation in a letter to stop processing new retail applications and refund the latest round of applicants. Wesson also called for either an independent audit of the city’s cannabis licensing process or for officials to start processing every application they receive (the latest licensing round has operated on a first-come, first-served basis but there were only 100 available licenses and the city reportedly received 300+ applications in the first three minutes).

“These are the only options that will provide the clarity and time we need to ensure that the application process is fair, transparent, and has integrity.” — LA City Council President Herb Wesson, in the letter

The latest licensing round was meant to be an opportunity to bring more social equity operators into the marketplace. However, Adam Spiker, the executive director of the LA-based cannabis trade group Southern California Coalition, told the LA Times that because of the first-come, first-serve nature of the process, things had devolved into a “fastest computer contest” that was ultimately disadvantageous for the entrepreneurs representing communities who were supposed to get a leg up under the social equity rules.

The licensing round also experienced other hiccups, including two applicants who were mistakenly given early access to the system, although officials said those applications were detected and moved to an appropriate place in line.

Business owners who received licenses during the latest round, however, were not pleased with the idea of having to redo the whole process. Several operators who received licenses have said they would sue the city if Wesson’s plan is enacted, Marijuana Business Daily reported.

Others, including Kika Keith of Life Development Group, an organization that advocates for social equity applicants in the city, said that delaying the licensing process any further would be catastrophic for businesses who are maintaining storefront leases without knowing whether or not they would receive a license.

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CDC Official: Cannabis Regulations Could Help In Vaping Crisis

11/01/2019

Anne Schuchat, the Principal Deputy Director for Centers for Disease Control and Prevention (CDC), suggested during a Friday CSPAN appearance that regulations for cannabis vaporizer products, including lab test and labeling requirements, would help to protect consumers from the ongoing and vape-linked pulmonary illness crisis.

First reported by Marijuana Moment, Schuchat’s statements were prompted by questions from people calling in to the program.

“I do think that labeling and information can help people know what they’re getting and then the systems that are there to enforce that the product is what it says it is can also help the consumer.” — Anne Schuchat, Principal Deputy Director of the CDC

Schuchat, however, stopped short of endorsing a federal legalization policy.

“The THC right now — pretty much the marijuana market, cannabis products — are at this point regulated at the state level, and many of those state regulations will talk about what needs to be done in terms of the testing and the quality control,” she said.

The ongoing vape crisis, which as of Thursday had affected 1,888 victims with 37 recorded deaths, appears to have mostly affected people who reported using unregulated THC vaporizer cartridges, not the lab-tested products that are available via state-legal markets. The crisis has sparked multiple statewide bans on flavored vaporizers (for both nicotine and THC) including a four-month ban in Massachusetts, a four-month ban in Washington, and a six-month ban in Oregon.

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Lawmakers Introduce Decriminalization & Expungement Bill in Wisconsin

11/01/2019

Legislation introduced in Wisconsin would decriminalize cannabis possession up to an ounce, expunge criminal records for possessing 28 grams or less, and prohibit police from searching vehicles based on the smell of cannabis, WUWM reports. The legislation is backed by the state’s Democrats, including Lt. Governor Mandela Barnes.

Barnes, who is African-American, said that in his hometown of Milwaukee, 40 percent of the population is African-American but represent 72 percent of all cannabis arrests in the city. Barnes said that research in the state has found “black people are four times more likely than their white counterparts to be arrested for marijuana offense while also being more likely to serve prison time for it.”

“Simple marijuana possession and/or use is not a reason for anyone to serve a prison sentence, lose out on a job, nor lose their voting rights.” — Barnes, on Twitter

Democratic state Rep. David Crowley said that the plan is aimed at social justice, saying that lawmakers “we want to provide a much-needed path for those previously convicted of these crimes to make sure they can get their records cleared.”

A previous decriminalization bill introduced in the state in 2017 included five Republican co-sponsors but that measure did not provide the criminal reforms that the new legislation includes.

Gov. Tony Evers said earlier this year that he would include a decriminalization plan when he unveiled his next state budget. That proposal would remove all state-level criminal penalties for possessing, manufacturing or distributing cannabis in amounts less than 25 grams and allow for expungement.

In 2014, state lawmakers introduced adult-use legalization legislation but it never made it to the floor for a vote.

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Tectonic9 Dry Herb Grinder Review

10/31/2019

The Tectonic9 grinder was introduced by Cloudious9, a vaporizer company focused on elevating dry herb technology. After a quick assessment of the innovations added to the grinder, anyone can see that the design was influenced by vape culture. Features of the Tectonic9 mitigate the issue of using our fingertips to squeeze ground bud into small herb chambers of portable vape pieces. In fact, a small motor does all that work for us.

Using the Tectonic9 dry herb grinder

This aluminum alloy dry herb grinder is a sleek matte black and has some weight to it. As far as the basics go, Tectonic9 is built like most conventional herb grinders. To load the herb just pull off the magnetized lid and push small, stemless nugs between its teeth. Now turn the lid back and forth until the herb is ground and visible in the next chamber of the grinder through the viewing window.

When it’s time to load the vape, slide the bar below the window to the left so that the round hole lines up with the herb chamber. Now flip the spout for dispensing up from the gadget so that it aligns with herb chamber opening. Lean the spout towards the vape or bowl and press the operational button to start vibration mode. That’s right, a small motor vibrates the grinder so that the herb pours itself into the piece. This function works if you move the grinder backward, leaving space for the ground herb.

The vibrating grinder is a cool gadget to show off, but it’s definitely meant for a specific customer. The Tectonic9 would be the perfect gadget or gift for someone who uses dry herb vapes. Anyone who has tried to load an herb chamber in a vape knows the hardship of squeezing and smashing herbs into a small cylinder. Using this small vibrating grinder takes the fingers and smashing out of the equation. It could also be ideal for joint, blunt, and backwoods rollers. Those who don’t want their fingers to reek of skunk will also appreciate the pouring feature of the Tectonic9.

Our final word is that this product is definitely recommended for the niche dry herb vape and joint-rolling markets.

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Atomic9 Vaporizer Review

10/31/2019

It’s clear just by looking at the Cloudious9 product line that the company is intent on standing out as individuals in vaporizer technology. A few years ago they launched the Hydrology9, a water-filtered dry herb vape that lights up like a lava lamp when operating in ‘Party Mode’. The Hydrology is revered as an at-home vape because it is a bit heavy and does tend to lose charge quickly. That is why the Cloudious9 team has introduced the Atomic9, a lightweight and low profile dry herb vape.

The Atomic9 fits discreetly in the palm of our hands and easily into a pocket or purse. It vapes at six optimal temperatures, 356°F, 374°F, 392°F, 410°F, 428°F, and 446°F. Each set-up contains a ‘Vapor Guide’ that explains what vape experience will result from each temperature setting. The entire Atomic9 is made up of 11 components and despite the elegant experience it provides, it’s simple to use.

How to use the Atomic9:

Flip the mouthpiece open by following the arrow indicator.
Use the small silver slide on the body of the vape to slide the shovel up out of the chamber.
Scoop herb into the heating chamber using the shovel and tamp lightly. Wipe away herb from the heating chamber to allow mouthpiece to close properly and close the mouthpiece.
If the vape is off press small oval button three times quickly to turn it on.
Once the vape turns on it will begin heating to the last temperature it was set to. The screen above the oval ‘On’ button will read the temperature.
Enter the temperature adjustment mode by holding down the oval button for three seconds. Once the mode is achieved the temperature on the screen will blink. Each press of the oval button in this mode will move the setting between each temperature. Once the preferred temp is selected hold down the oval button for 3 seconds and the vape will go back to heating mode.
The LED light indicator with the Cloudious logo will be lit red while the chamber is heating. It will turn green once the desired temperature has been reached.
Once temps are achieved simply draw from the mouthpiece slowly, inhale and enjoy.
To turn off the vape, hold the oval button down for 3 minutes. The Cloudious9 cannot be turned off while in temperature adjustment mode.

We had a pleasant experience using the Atomic9 vape. Vaping around 374°F, the second temperature setting, the vape produces a true-to-flower flavor with a super light vapor. It heats to 374°F in less than a minute. At the next highest setting (392°F) there is a more visible vapor without too much sacrifice in the flavor. Even at 410°F setting the Atomic9 didn’t burn the ground Indica flower that we put in the chamber. When we were finished, the chamber easily emptied and all the herb was vaped evenly throughout.

One full chamber in the Atomic9 would be enough for around 3-4 stoners to sesh with, no problem. But don’t forget to get a full charge before taking the piece out. Easily check the battery level by holding the operational button down for three seconds, then the Cloudious9 LED logo will light green to indicate full, yellow to show that it’s half, and red to indicate a low battery. To get a full charge plug the small, portable dry herb vape into a USB port for about 50 minutes.

After using the Atomic9 we can safely say that it would be great to take on the trail for a low profile summit toke. It is small and light so it can fit easily in a fanny pack or jacket pocket. But despite the size it still has a chamber large enough for the core group to sesh together. This is a great portable dry herb vape and definitely worth recommending to someone who prefers flower.

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Binge Drinking Drops 9% Below National Average in Legalized States

10/31/2019

Based on research from Cowen & Co, Grand View Research reports that binge drinking in U.S. states with legal recreational cannabis has dropped 9 percent below the national average, according to Financial Buzz. The researchers found that excessive drinking in states with legalized cannabis is also 11 percent lower than in states where cannabis remains outlawed.

Washington, one of the first states to legalize recreational use, reported last year that about 15.6 percent of adults said they had four or more drinks – the threshold for ‘binge drinking’ – on just one occasion in the past month; the national average of 17.4 percent, according to the United Health Foundation’s America’s Health Rankings.

A February report by IWSR Drinks Market Analysis and BDS Analytics, titled Beverage Alcohol, Cannabis and the Changing US Consumer: What are the Real Risks and Opportunities to Consumption Behaviour?, found, however, that in states with adult-use sales, alcohol consumption “still remains higher” with twice as many adults 21-and-older consuming alcohol compared to cannabis, the Spirits Business reports.

Brandy Rand, IWSR’s U.S. president, told Spirits Business that while cannabis adoption was “not mainstream,” it “does pose a risk to the beverage alcohol industry in the future.”

“It’s important that alcohol brands pay attention to their consumers, recognizing that some occasions may result in a decrease in alcohol consumption in place of, or alongside, legal cannabis.” – Rand, to Spirit Business

Jessica Lukas, vice president of BDS Analytics, said the firm’s research shows that up to 40 percent of legal-age adults consume cannabis in legal states.

“Cannabis presents substantial opportunities across consumer industries, including new occasions that alcohol cannot and will not play,” she said in the report. “Consumers will continue to look to cannabis products over alcohol for occasions when they are feeling creative, need to get motivated, or seeking health, medical or wellness benefits.”

A 2018 Euromonitor International survey of 50,000 young adults and adolescents in the U.S. found that college students who consumed alcohol daily halved in just one year from 4.3 percent in 2016 to 2.2 percent in 2017. In 1980, 6.5 percent of that population used alcohol daily. In 2017, Yahoo! News found that the majority of the 55 million cannabis users in the U.S. are millennials.

A New Frontier Data study in April found that 65 percent of survey respondents said they prefer cannabis to alcohol if given a choice, 45 percent indicated they would likely replace some of their drinking with cannabis in the future, and 47 percent said their drinking habits had not changed.

Some studies and anecdotal evidence suggests cannabis could be useful as an exit drug for alcoholics, and a 2018 study suggests that CBD could be used to reduce the risk of relapse among recovering alcohol and cocaine addicts.

Alcohol company Constellation Brands owns about 38 percent of Canadian licensed cannabis producer Canopy Growth.

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Illinois Cannabis Workers Unionize Claiming Unfair Labor Practices

10/31/2019

Workers at Rock Island, Illinois medical cannabis company Green Thumb Industries have formed a union amid claims of unfair labor practices, harassment, retaliation, and unlawful intimidation, the Quad City Times reports. The workers told city officials on Monday that the company refuses to recognize the union.

Kyle Meyer, who has worked at GTI two years, told the Times that the employees “ran a clean campaign” to form the union and asked for recognition from the company on October 10 but company brass never got back to the employees, despite notices.

“For months, my coworkers and I listened to complaining from managers, supervisors and coworkers about losing benefits, having promised raises unfulfilled and a general lack of organization, and that’s when we decided to form a union.” – Meyer, to the Times

In response, several aldermen are asking the city to stop supporting companies that break the law with tax breaks. In all, GTI is set to receive $835,000 in tax breaks from the city after the City Council unanimously approved a $775,000 incentive package in December and increased the package by $60,000 in August. The incentives will help the company double its Rock Island facility to 66,000 square feet and hire another 100 workers; currently, there are more than 50 employees at the facility.

Since October 10, four complaints have been filed with the National Labor Relations Board against GTI by the Teamsters union on behalf of the workers. The Teamsters represent 1.4 million members. The complaints allege that employees were illegally polled and interrogated about their union organizing, according to documents obtained by the Times through a Freedom of Information Law request.

Ald. Dylan Parker said it infuriated him that a company that was violating the law was also getting tax breaks.

“If you’re going to be harassing employees, if you’re going to be violating labor laws, you’re not getting tax money from Rock Island citizens, so I would request your support on this,” he told his colleagues, the report says.

Mayor Mike Thoms said the council “didn’t hear the other side’s point of view” and that “it’s not the city’s role to intervene in a private businesses like that.”

“It’s a private industry; it’s their business. Not the city’s,” Thoms told the Times. “The business has lived up to its promise on the incentives by adding jobs and adding capital to their building and that’s what the city asked for.”

On October 12, California Gov. Gavin Newsom (D) signed a law requiring cannabis retailers enter into “labor peace agreements” which requires them to make a deal with a formal labor union and prohibiting managers from interfering with union activities. In exchange, organizers won’t encourage labor strikes.

Only New York also has cannabis industry labor peace agreements codified by law. Illinois legalized cannabis for adult use last year. Sales are expected Jan. 1.

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Report: 80% of Random Denver Flower Samples Fail Mold, Yeast Tests

10/31/2019

About 80 percent of cannabis randomly tested by the Denver, Colorado Department of Public Health and Environment failed tests for potential yeast and mold, according to a Westword report. The agency has not yet made the results of the tests public but Westword was able to review reports from the action filed between September 9 and September 11.

City officials announced the assessment in August, explaining that it would conduct the tests in about 25 retail dispensaries and the participants and samples would be randomly selected.

“Each sample will be tested for pesticides and total yeast and mold by a state- and ISO-certified marijuana testing facility,” the agency said in the announcement.

Of the 25 reports filed over the two days, 20 products tested resulted in at least one or more hold and quarantine orders for flower, shake or pre-rolls, an 80 percent failure rate. Each of those holds is tied to plant matter testing above the maximum counts for total yeast and mold, the report says.

Some of the products tested may not have been from the random sample, though, according to DDPHE food and marijuana safety manager Abby Davidson who told Westword some could be from “routine inspections” and that the agency doesn’t “typically” conduct 25 investigations a week.

“All of our enforcement in our work from the beginning of workings with marijuana facilities is public. So maybe some [reports connected to the assessment] went out before, maybe some went out after.” – Davidson, to Westword

One dispensary owner who failed the assessment blamed the result on the state’s tracking system, METRC, which, the owner claims, allowed them to buy the flower which should have been flagged by the tracking software if it failed laboratory testing.

“If we had any inclination that the product would not have passed testing, we would have not received or purchased the product wholesale,” the dispensary owner told Westword. “We are debating whether or not to take legal action against the vendor for this inconvenience and loss of business that we have experienced.”

Davidson admitted that dispensaries might not have had any hand at contaminating the products that failed the assessment.

“Or it could be that there were processes that happened after cultivation that maybe would’ve led to contamination,” Davidson said in the report. “It’s really hard to point any fingers until we’re able to do our investigation and backtrack to how that product got to that dispensary.”

An industry CEO said the agency tests are “based on questionable scientific principles.”

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New Study Links Parental Cannabis Use to Teen Consumption

10/31/2019

The University of Washington’s Social Development Research Group (SDRG) — a part of the School of Social Work — published a study that seems to link parents’ cannabis use, past or present, to their children’s substance abuse tendencies and overall health.

Funded by the National Institute on Drug Abuse and published in the journal Psychology of Addictive Behaviors, the research draws on an earlier study that looked at cannabis consumption patterns and their impact on behavior and health. Four groups emerged from this earlier work: “nonusers,” “adolescent-limited” (confined to only that period of life), “late-onset” (starting in their late teens, early 20s), and “chronic” (ongoing and frequent). Additionally, the earlier study linked cannabis use to a host of negative health and behavioral outcomes. This latest study looked at a subset of the original sample cohort, which began in the 1980’s at several Seattle elementary schools.

In 2002, the SDRG began interviewing participant children age 10+ about cannabis. 360 kids between the ages of ten and twenty were interviewed for the latest study. As predicted, children of chronic users are the most likely to use cannabis themselves — 4.5 times more likely than children of non-users. But researchers were surprised to find children of parents who used cannabis only as adolescents were 2.5 times more likely to use cannabis than children of non-users, despite factoring for parents’ current cannabis consumption habits. Children of non-users and late-onset users were the least likely to consume cannabis.

“The really important takeaway is that parent history of marijuana use is an important risk factor for kids. Using marijuana in adolescence is associated with a host of other problems in the present and later into adulthood. Now we see that echoing through to their children.” — Marina Epstein, a lead author on the studies, via UW News

Researchers want to know why children of parents in the “adolescent limited” group have such high risk factors. They believe parents’ attitudes toward substance abuse and teenagers may be at play, but say more research is needed.

“Now that marijuana is legal, we have to be able to talk to parents about how they’re using, and to be more specific — how much, how often, whether this is lifelong pattern,” said Epstein. “The landscape of marijuana is changing, and we have to be mindful of it.”

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Cannabis Industry Lobbyists Set New Spending Record

10/30/2019

Cannabis industry lobby spending has reached $3.77 million this year, a new high that surpasses the $2.76 million spent in 2018, according to Open Secrets figures. The Cannabis Trade Federation led the industry in lobby spending at $760,500.

The spike in spending comes during the same cycle federal lawmakers in the House passed the SAFE Banking Act. The bill was the first-ever stand-alone cannabis reform measure considered by the chamber.

Other major spenders this cycle include Curaleaf Inc. ($700,000), whose Senior Vice President of Government Relations serves as the chairman of the Cannabis Trade Federation, the National Cannabis Roundtable ($445,000), the National Cannabis Industry Association ($430,000), Parallel Brands ($420,000), Tweed Inc ($210,000), Canndescent ($190,000), the Global Alliance for Cannabis Commerce ($140,000), Dama Financial, and Trulieve ($120,000 each).

Weedmaps and Acreage Holdings spent $95,000 and $80,000, respectively, on lobbying efforts, while the California Cannabis Industry Association spent $56,000 and the Oregon Cannabis Association spent just $5,000.

In July, Cannabis Trade Federation CEO Ned Levine said the STATES Act, which is sponsored by Sen. Elizabeth Warren (D), is the organization’s “top priority.” That bill would prohibit the federal government from interfering with state-approved cannabis policies.

In 2014, the cannabis industry spent just $80,000 on lobbying efforts, which increased to $300,000 in 2015, to $430,000 in 2016, and to $1.62 million in 2017.

The Open Secrets data was downloaded from the Senate Office of Public Records on October 23.

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Quebec Raises Cannabis Purchasing Age to 21

10/30/2019

The Quebec, Canada government has raised the legal age for cannabis purchases from 18 to 21-years-old, CTV News reports. The new rule in the province takes effect on January 1 and will make Quebec the province with the highest legal cannabis purchasing age; most provinces set the age at 19, Alberta’s age is set at 18.

Francois Limoges, a spokesperson for the Quebec Cannabis Industry Association, told CTV that the industry is “totally disappointed” with the decision. In a press release following after the bill’s passage, the group said that the changes “will steer the most vulnerable consumers toward the black market.”

“The government’s motives are surprising in this approach. Note that public health officials and safety experts who advised the federal government over the implementation of cannabis legalization in the country, as well as many Quebec organizations specializing in cannabis, have advocated for a harm reduction approach by recommending that the minimum age be set at 18- years-old.” – Michael Timperio, QCIA president, in a statement

Limoges said raising the age tells younger consumers to “go back to your dealers.”

“… They’ve been buying legal cannabis for the last 12 months and as we know, when you’re a younger adult you’re not going to wait (to turn 21),” Limoges said to CTV, adding that it will be harder to bring those consumers into, or back into, the legal market.

The legal drinking age in Quebec in 18 – among the lowest in Canada.

In July, provincial officials announced a ban on cannabis edibles that have flavors or sweeteners that would appeal to children and capped THC levels for cannabis edibles at 5 milligrams per unit and 10 milligrams per package, along with a 5 percent THC cap for beverages. The government also banned cannabis-infused topicals “for the moment.” Those products are expected to be permitted for sale throughout Canada in December.

Prime Minister Justin Trudeau has criticized the provincial plan to raise the age, telling the Canadian Press that the move could leave an opening for organized crime in the illicit market.

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Purdue University Nets $1M Award for Organic Hemp Production Study

10/30/2019

The U.S. Department of Agriculture has awarded Indiana’s Purdue University a $1 million grant to study organic hemp production. The research will be led by Kevin Gibson, a professor of botany and plant pathology who said understanding organic farming methods for hemp are especially important because there are, currently, no pesticides that can be used legally for hemp production.

According to the university, it’s the first grant awarded by the USDA for the study of organic hemp cultivation.

“There’s certainly tremendous interest and tremendous opportunities, but the reality is that this is a crop we haven’t grown on significant acreage for 70 to 80 years. The knowledge base to be successful needs to be developed.” – Gibson in a statement

Additionally, Gibson said, the researchers will explore “how hemp might fit in rotation with other crops, how it might fit into a soil conservation system, and how cultivars and the timing of planting will affect growing success.”

Don Robison, the seed program administrator for the Indiana State Chemist’s Office, said understanding organic methods for hemp cultivation is “crucial because the large pesticide companies aren’t going to race to develop chemicals for the hemp industry because it will be a drop in the bucket compared to crops like corn and soybeans.”

Earlier this month, the National Industrial Hemp Council and American Farm Bureau Federation asked the Environmental Protection Agency to approve 10 pesticide applications for hemp production. Those applications came from Argo Logistic Systems, Marrone Bio Innovations, and Hawthorne Hydroponics. Those products are already legal for use on outdoor crops and “contain active ingredients for which EPA previously determined the residues will be safe under any reasonably foreseeable circumstances.”

The USDA released its draft rules for the federal hemp industry this week; there is no mention of pesticides in those rules.

Earlier this month, the agency awarded $500,000 to Virginia Tech and University of Tennessee, Knoxville researchers studying the transport of pollen from genetically modified hemp and switchgrass.

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USDA Releases Hemp Industry Draft Rules

10/29/2019

Federal officials at the United States Department of Agriculture have released a set of draft rules for the industrial hemp industry. The regulations will dictate hemp industry growing practices, THC limitations and testing standards, and outline the appropriate methods for disposing of crops that don’t meet federal standards.

Once the rules are finalized — note that, for now, they remain subject to change — the USDA will be able to begin the review and approval process for individual states’ hemp programs.

The proposal is currently available for public comment and is expected to officially appear in the Federal Register later this week; the rules will take effect initially for two years. The White House issued its approval of the proposed regulations earlier this week before the draft rules were made public.

“The USDA has established a regulatory framework that will serve as an infrastructure for the U.S. hemp economy,” said Shawn Hauser of the Colorado hemp and cannabinoids law firm Vicente Sederberg.

“While the hemp industry has seen incredible growth since the passage of the 2014 farm bill, it has been stifled by the lack of federal regulation. The establishment of federal regulations governing hemp as an agricultural crop is a watershed moment for the entire cannabis industry.” — Hauser, partner and chair at Vicente Sederberg, in a press release

Industrial hemp was federally legalized at the close of 2018 following the successful passage and signing of the 2018 Farm Bill, meaning the crop has been legal for 10 months so far without rules or regulations addressing the industry at the federal level. The legalization effort was a bipartisan push spearheaded by Senate Majority Leader Mitch McConnell (R-Kentucky).

Since then, hemp farmers and hemp-based businesses like CBD product manufacturers have been operating more or less in the dark about the industry’s future. The USDA noted that CBD companies are still awaiting draft rules from the Federal Drug Administration (FDA) as well.

“If FDA does not provide clarity about their plans for future regulation of CBD, there will continue to be uncertainty and downward pressure on the CBD portion of the hemp market,” the agency’s rules proposal warns.

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Canadian Company Adopts Recyclable Tin Cannabis Packaging

10/29/2019

Canadian cannabis company Freedom Cannabis is launching its product line in a recyclable steel container called Nitrotin, the Winnipeg Free Press reports. The packaging will buck the trend of hard-to-recycle plastic containers used by most of the country’s licensed producers.

Troy Dezwart, executive director and co-founder of Freedom, said the packaging has other advantages, including a sealing process that replaces oxygen in the container with liquid nitrogen to help the product remain fresh until its unsealed. Once the seal is broken, the can is closed with a plastic cover that doubles as a child-proofing mechanism – child-proofing is required under the nation’s legalization laws.

Dezwart said the industry has “been hearing nothing but negative energy” about the packaging of cannabis products which, he said, have “a lot of waste.” He said the tins will help the company’s products stand out since federal law limits cannabis branding and packaging.

“It seemed to make a lot of sense. Although we pay a little bit more for this product than you would for some of the conventional (packages), based on what we’ve heard from consumers, and their pushback on some of the waste with packaging, it’s kind of a trifecta for us.” – Dezwart, to the Free Press

In Canada, the tins will be able to go directly into recycling containers instead of being taken to a facility that can handle complex plastics or multiple materials that require extra processing.

Licensed producer 48North Cannabis already uses post-consumer recycled paper packaging for its pre-rolls and Tychon Packaging supplies its 100 percent PET plastic containers to 25 different cannabis producers throughout the state.

Packaging is just one energy-input concern in the cannabis space; in 2016 a report found indoor cannabis grows to be as energy-intensive as data centers. The report suggests that indoor grows use 2,000 watts per square meters, which, EQ Research says, is “50 to 200 times more energy-intense than a typical office building.” Many medical cannabis programs in the U.S. require indoor cultivation.

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Buffett-Linked Venture Capital Fund Invests in Flowhub

10/29/2019

Cannabis tech company Flowhub has landed a $23 million investment in a Series A funding round led by Evolv Ventures – a venture fund backed by Kraft Heinz – and e.ventures. Kraft Heinz is partly owned by Warren Buffett’s Berkshire Hathaway and the investment marks the first time a Buffett-linked firm has invested in the cannabis space.

The funding round includes additional financing by Poseidon, 9Yards Capital, former National Basketball Association Commissioner David Stern and Iqram Magdon-Ismail, the co-founder and former CEO of Venmo.

Emily Paxhia, managing director for Poseidon, said that the cannabis industry was not one “that you just jump right into,” noting in a press release that the “compliance and regulation aspects” make the industry “unique.”

“With this investment, we will continue to automate the cannabis supply chain, retail and reporting processes and bring to market technology solutions that are not only shaping the cannabis retail business, but also driving forward the future of legalization and de-stigmatization.” – Kyle Sherman, Flowhub founder and CEO, in a statement

Last year, Coca-Cola – of which Berkshire Hathaway owns a 10 percent stake – was reportedly in talks to partner with Canadian cannabis company Aurora on a CBD-infused product line. In May, Buffett and his business partner Munger told Fox Business it would be “a mistake” for the company to get into the cannabis business, adding that it “would be detrimental” for Coke’s “wholesome image.”

The Series A funding round by Flowhub brings the cannabis tech company’s total to $27 million.

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Massachusetts Cannabis Company Settles Lumber Firm’s Trademark Dispute

10/29/2019

Massachusetts cannabis company New England Treatment Access and lumber firm Boise Cascade Company have settled a federal lawsuit over the cannabis company’s use of a logo similar to Boise Cascade’s, according to a Masslive report. The lawsuit was filed in April in U.S. District Court in Boston.

Attorneys for Boise Cascade argued that the cannabis company’s tree-in-a-circle logo was “confusingly similar” to their logo and used a “nearly identical” green color which would likely “cause confusion, to cause mistake, and/or to deceive customers and potential customers” into believing there was a link between the dispensary chain and the lumber company, Masslive reported in April. NETA denied any wrongdoing.

“As alleged in our complaint, because of the similarity between NETA’s tree-in-a-circle logo and Boise Cascade’s decades-old Tree-in-a-Circle trademarks, Boise Cascade is concerned that NETA’s logo will dilute, weaken, or tarnish the reputation and distinctiveness of Boise Cascade’s Tree-in-a-Circle trademarks.” – David Viens, Boise Cascade attorney, to Masslive

The parties notified the court in July that they were working on a settlement and last month filed a joint motion in agreeing to dismiss the case, with no costs awarded on either side. The terms of the settlement were not disclosed. The NETA website now displays a blue logo that is not dissimilar from the one challenged in court.

There’s been a host of trademark-related lawsuits in the cannabis space, including a fight over “Woodstock,” Citibank asking California-based cannabis company Citidank to stop using the moniker, hot sauce company Tapatio defending its sombrero-adorned “Charro” mark, adhesive company Gorilla Glue forcing the famous strains that shared a namesake to change their branding name to GG4 and GG5, and Snoop Dogg facing off against the National Hockey League’s Toronto Maple Leafs.

In 2018, MedMen filed a federal copyright on the word “cannabis” appearing on t-shirts, while a Washington dispensary operator was denied federal trademark protection in 2016 for “Herbal Access” because the trademark would be used for federally-prohibited cannabis sales.

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Michigan Starts Accepting Cannabis Industry Applications on Friday

10/28/2019

Editor’s note: A previous version of this article incorrectly indicated that the application period will begin on December 1 instead of November 1.

Michigan cannabis industry regulators are set to begin accepting applications for retail cannabis operators on Friday, November 1, according to a Michigan Radio report. However, Robin Schneider, executive director of the Michigan Cannabis Industry Association, told the National Public Radio affiliate that she isn’t expecting many applications to be submitted on the first.

“I just don’t believe that we’re going to see a green rush of businesses running out to get those rec licenses on the first day because of the lack of supply.” – Schneider, to Michigan Radio

State regulators are expecting to grant the first licenses for recreational cannabis businesses in a matter of weeks but retail sales are likely still a long way off because the plants for the market still need to be grown and tested. The Department of Licensing and Regulatory Affairs released emergency rules for the industry in July, which allow for delivery and social use.

Under the rules, 100-plant “entry-level” growers will have to pay $4,000, while a 500-plant medical cannabis cultivation license will run $10,000. Retail dispensary licenses will range from $20,000 to $30,000, while medical dispensary licenses will cost $66,000.

The November 1 date coincides with the cutoff date for municipalities to ban cannabusinesses. According to a Grand Rapids Press report, as of Aug. 31, 308 of the 792 cities and townships that approved the ballot initiative to legalize cannabis have since passed bans on operations. In all, at least 771 municipalities have passed ordinances banning cultivation operations and dispensaries, according to Marijuana Regulatory Agency figures outlined by the Detroit Metro Times. The law was approved by 55.9 percent of Michigan voters in 2018.

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Maine Adopts Massachusetts’ Cannabis Warning Labels

10/28/2019

Cannabis regulators in Maine have adopted the warning symbols for cannabis products from Massachusetts, the State House News Service reports. The adoption could be a preview of how New England states unify some cannabis regulations in lieu of federal legalization. Maine’s rules require all products to have cannabis warning labels that read “contains THC” and “Not Safe for Kids.”

Erik Gundersen, director of the Maine Office of Marijuana Policy, said using the “same universal symbol will ensure that customers can clearly recognize products that contain THC whether in Massachusetts or Maine.”

Three of the six New England states – Maine, Massachusetts, and Vermont – have legalized cannabis for adult use, although Vermont has not yet legalized sales or a regulated industry. Legalization legislation has been introduced in New Hampshire, Connecticut, and Rhode Island but has not yet been voted on by lawmakers.

Maine officials said regulators “identified the CCC’s symbol as a potential opportunity for collaboration and were pleased with how warmly the suggestion of utilizing the same symbol was received by their counterparts in Massachusetts.”

Earlier this month, governors from New York, Connecticut, New Jersey, and Pennsylvania met to discuss regional cannabis legalization policy. In a statement on the summit, Connecticut Gov. Ned Lamont (D) said that eastern states “not only share borders” but “economic interests” and that “when states work together collaboratively, carefully and thoughtfully [they] can create better policies.”

According to the State House News report, Maine officials expect to begin accepting cannabusiness licenses by the end of the year.

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UN Warns Australia: ACT’s Cannabis Reforms Violate Treaties

10/28/2019

The United Nations International Narcotics Control Board has sent a letter to the Australian federal government warning that cannabis reforms in the Capital Territory breaches at least three international conventions on a drugs control treaty signed by the nation, according to a report from the Australian.

“The board wishes to recall that cultivation, production and distribution of cannabis for non-medical purposes is inconsistent with the provisions of the 1961 convention as amended, in particular article 4(c), which requires state parties to limit the use of narcotic drugs exclusively to medical and scientific purposes.” – UN INCB, in a letter to the Australian government

The letter was sent to Australia’s UN mission in Vienna and forwarded to the Department of Foreign Affairs and Trade and the Department of Health.

“The board wishes to reiterate that the legalization and regulation of cannabis for nonmedical use, including in small quantities, would be inconsistent with Australia’s international legal obligations,” the letter states.

The agency issued a similar warning in their 2017 annual report, calling out Uruguay, the Netherlands, Jamaica, Canada and U.S. states for implementing cannabis legalization reforms. The body could bring offenders in front of an international court but, to date, has not taken any action.

Australian Health Minister Greg Hunt has indicated the federal government has “no plans” to fight against the ACT legalization plan – which takes effect Jan. 31, 2020. Attorney General Christian Porter said earlier this month that the law has “no effect” because of Commonwealth statutes.

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College Students Sue Schools for Denying Medical Cannabis Use

10/25/2019

At least three college students have launched legal challenges against colleges that have taken action against them – including expulsion – for using medical cannabis, according to an Al Jazeera report. The lawsuits come from students studying nursing and other medical specialties who, under school policies, must submit to drug tests.

Sheida Assar, who uses medical cannabis to treat chronic pain from polycystic ovary syndrome, was expelled from Phoenix Arizona’s GateWay Community College after failing a drug test for cannabis. She told Al Jazeera that school officials told her she would not have any problems if she showed them her state-issued medical cannabis card.

“They yanked me out of class in the middle of the school day. They escorted me to the administration like I was a … criminal. It’s discrimination, and it also violates my rights under the Arizona medical marijuana law.” – Assar, to Al Jazeera

Assar is seeking $2,000 she spent on tuition and other educational expenses and additional money for damages. GateWay spokeswoman, Christine Lambrakis, said the college has a ban on cannabis use but that the school is reviewing its policies; for now, the school has no plans to change the rules despite the 2018 Arizona Supreme Court Ruling.

Connecticut nursing student Kathryn Magner sued Sacred Heart University after officials barred her from attending required clinical medical rounds after she tested positive for cannabis. Magner has a medical cannabis card from her home state of Massachusetts for undisclosed conditions. She has since settled the suit under undisclosed terms; however, before the settlement, she stopped using cannabis, passed a drug test, and obtained approval from the Office of Student Accessibility to use cannabis, but the nursing school officials would not let her back into the program. Connecticut law prohibits public and private colleges from discriminating against students enrolled in medical cannabis programs.

In a statement, Sacred Heart said it treats medical cannabis like other disability-related requests and “seeks to provide reasonable accommodation under the law.”

Michael Thad Allen, a lawyer for Magner, said issued like these “will become more common if employers and schools don’t abide by the law.”

Kaitlin McKeon was expelled from Nova Southeastern University’s nursing program last year after failing a drug test for cannabis; officials at the Florida school said she violated the institution’s drug policy even though she holds a medical cannabis card issued in the state.

Michael Minardi, her attorney, called it “sad” that the college took action against his client “because she chose a medication that’s legal in Florida but not one that they recognize.”

The rulings could set legal precedents which could ultimately prevent schools from taking punitive actions against medical cannabis cardholders.

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Sanders Describes Plan for Legalizing Within 100 Days of Election

10/25/2019

In a campaign email yesterday, Democratic presidential candidate Bernie Sanders outlined his plan to federally legalize cannabis through an executive order in his first 100 days in office if elected. The plan includes expungement of cannabis-related convictions, social equity programs from funds raised from cannabis-derived revenues and would “ensure legalized marijuana does not turn into big tobacco.”

“Why is it that millions of dollars are being made by mostly white, mostly male, and already rich ‘cannabiz’ entrepreneurs in states where marijuana is legal, while the people and communities that were ravaged by the War on Drugs have been shut out of the industry, denied credit, and many are still incarcerated? That is going to change when Bernie is president.” – Nov. 24 Bernie Sanders campaign email

The campaign says Sanders would nominate an attorney general, Health and Human Services secretary, and Drug Enforcement Administration head “who will all work to aggressively end the drug war and legalize marijuana.”

Sanders would, according to the email, base his criminal reform policies on the California model, which directs authorities to review current and past cannabis-related convictions and prosecutors would have one year to “appeal or object, after which authorities will automatically expunge and vacate past marijuana convictions for all those eligible.” The policy would include federal funding for states and cities to partner with organizations that could streamline the process, much like California’s partnership with Code for America. That partnership led to expunging 9,362 felony and misdemeanor cannabis convictions in the state dating back to 1975.Lweg

Taxes from legal cannabis sales would be used, in part, to create a $20 billion grant program within the Minority Business Development Agency “to provide grants to entrepreneurs of color who continue to face discrimination in access to capital,” the campaign says. Another $10 billion grant would be created for cannabusinesses that are at least 51 percent owned or controlled by individuals in areas disproportionately impacted by the War on Drugs or those who have been arrested for or convicted of cannabis offenses. A $10 billion program would also be set up in the U.S. Department of Agriculture to start cannabis farms is urban and rural areas most impacted by the drug war. The plan also includes free job training for formerly incarcerated individuals seeking to enter the space.

In order to prevent cannabis from becoming big tobacco, the Sanders plan would incentivize cannabis businesses to be set up like nonprofits, prohibit advertising and labeling aimed at young people, ban companies that have created cancer-causing products or have used deceptive marketing practices, and ban tobacco and cigarette companies from the industry entirely.

Sanders first floated the plan to legalize cannabis via executive order on the Joe Rogan Experience podcast in August.

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Canadian Cannabis Producer Hexo Announces Layoffs, Facility Closures

10/25/2019

Canadian cannabis company Hexo Corp. has laid off about 200 workers including some executive positions in what the firm called “rightsizing.” In a press release, Hexo said the cuts were necessary as it adjusts “to a changing market and regulatory environment with a view towards profitability and long-term stability.”

Sebastien St-Louis, CEO and co-founder, called the layoffs his “hardest day” with the firm.

“While it is extremely difficult to say goodbye to trusted colleagues, I am confident that we have made sound decisions to ensure the long-term viability of Hexo Corp. The actions taken this week are about rightsizing the organization to the revenue we expect to achieve in 2020.” – St-Louis, in a statement

Chief Manufacturing Officer Arno Groll and Chief Marketing Officer Nick Davies were included in the round of layoffs.

According to a Global News report, the Gatineau, Quebec-based company had 822 employees as of April 30. The plan includes the shuttering of facilities it operates near Niagara Falls, Ontario, Marketwatch reports. Those facilities were operated by Newstrike Brands, which was acquired by Hexo in a deal closed in May.

According to Marketwatch, the announcement came a day after the Canadian cannabis company said it was raising $53.3 million in convertible debentures through a private placement and that it is postponing its earnings call until Tuesday. Earlier this month the company warned investors that it was expecting revenues for the July quarter to reach C$14.5 million instead of the anticipated C$24.8 million; they are expected to report sales of C$15 million, up from C$1.4 million during the same period a year ago.

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Gallup: American Support for Legalization Remains at Two-Thirds

10/24/2019

Americans’ support for legalizing cannabis remains at 66 percent, according to a Gallup poll. The polling firm found the same level of support last year – it’s the highest support for the broad reforms since Gallup began asking the question in 1969 when just 12 percent of respondents supported legalization.

The poll found the majority of members all political parties support the reforms, although there is a wide gap between Democrats (76 percent) and Republicans (51 percent). Sixty-eight percent of Independents said they supported nationwide legalization. However, 82 percent of those who identified as liberal backed legalization compared to a minority (48 percent) of self-described conservatives.

Support was strongest among adults under age 30 (81 percent) and Millennials (80 percent) followed by Generation X (63 percent) and Baby Boomers (61 percent). Individuals born in 1945 or before were largely no in favor, with just 40 percent support, while 49 percent of senior citizens said they supported legalization.

The majority of all ethnic group members polled supported the reforms, including 74 percent of African-Americans, 66 percent of whites, and 57 percent of Hispanics.

Among individuals that attend religious services on a weekly basis, just 42 percent said they favored legalization, compared to 77 percent of those who never attend religious services, and 63 percent of those who attend occasionally.

In 1977, Gallup found 28 percent backed legalization but support dropped to 23 percent in 1986 before rising to 25 percent in 1995. The pollsters then found fairly consistent support into the 2000s. In 2001, 31 percent said they backed the reforms, and support jumped to 36 percent by 2006. In 2010, 44 percent of respondents indicated they supported legalizing cannabis, and the needle pushed to 50 percent in 2012, before dropped to about 45 percent the following year, rising again to 58 percent in 2013, dropping again to about 45 percent two years later before spiking to 58 percent in 2016.

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