Hampden County Massachusetts Approves First Adult-Use Cannabis License

4/12/2019

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Chicopee, Massachusetts is set to host Hampden County’s first recreational cannabis retailer after the Cannabis Control Commission granted a license to Mass Alternative Care, the Reminder reports. The company already sells medical cannabis; adult-use products will be sold in the same building but in a separate area due to different sales systems and tax rates.

Nathan Moreau, spokesperson for Mayor Richard Kos, indicated that recreational sales would not begin for a few weeks, as regulators still need to conduct final inspections of the facility.

Chicopee is also considering approval for Green Meadows Farm, who last week hosted a community outreach presentation on the proposal. Green Meadows, which shifted from organic vegetable farming to cannabis cultivation in 2017, plans to open a dual-use facility for both recreational and medical cannabis.

According to the report, about half of the outreach presentation attendees opposed the dispensary due to public safety, zoning, and traffic concerns.

Green Meadow CEO Robert Patton told residents that the dispensary would be focused on the medical side of the business and they expected to create about 10 to 15 jobs.

The outreach presentation is just the first step for the company. There is no indication of when a decision is expected.

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AG Barr Calls Cannabis Situation “Intolerable,” Would Support STATES Act

4/11/2019

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During a Senate Appropriations Committee hearing on Wednesday, U.S. Attorney General William Barr said that the current disconnect between state and federal cannabis laws is “intolerable” and that he would prefer policy similar to that outlined in the proposed STATES Act, The Denver Channel reports.

If approved, the STATES Act would protect state-legal cannabis programs established either by local lawmakers or via successful voter initiatives. It is one of several currently pending pieces of legislation that would reform federal policy to protect state-legal cannabis operators and entrepreneurs from federal interference.

Barr’s statements were made in response to questions posed by Sen. Lisa Murkowski (R-Alaska), one of many co-sponsors behind the bi-partisan STATES Act.

“Personally, I would still favor one uniform federal rule against marijuana, but if there is no sufficient consensus to obtain that, then I think the way to go is to permit a more federal approach so states can make their own decisions within the framework of federal law, so we’re not just ignoring the enforcement of federal law.” — Barr, during Wednesday’s Senate Appropriations Committee hearing

Barr said he has not looked specifically at the STATES Act but that the proposal has been circulating the Department of Justice for feedback, which he promised to provide lawmakers with further down the line.

The STATES Act was first introduced by Sens. Cory Gardener (D-Colorado) and Elizabeth Warren (D-Massachusetts) last year; when it was introduced, President Trump signaled that he would sign the bill if it reached his desk.

The bill was reintroduced last week with a long list of co-sponsors, including Sens. Michael Bennet (D-Colorado), Catherine Cortez Masto (D-New Mexico), Kevin Cramer (R-North Dakota), Amy Klobuchar (D-Minnesota), Lisa Murkowski (R-Alaska), Rand Paul (R-Kentucky), Dan Sullivan (R-Alaska), and Ron Wyden (D-Oregon); the bill was also introduced to the House by Reps. Earl Blumenauer (D-Oregon) and David Joyce (R-Colorado).

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FDA Sends Warning Letters to Three Online CBD Sellers

4/11/2019

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The federal Food and Drug Administration last month sent letters to three companies selling CBD on the Internet, warning them that their products violate federal laws. The letters, dated Mar. 28, were sent to PotNetwork Holdings which runs DiamondCBD.com; Nutra Pure LLC, which runs CBDPure.com; and Advanced Spine and Pain LLC, which does business as Relievus.

Among its claims, the agency accuses the PotNetwork and Nutra Pure of unsubstantiated advertising claims related to CBD marketing, and Relievus of selling unapproved new and misbranded drugs for humans and animals in addition to unsubstantiated advertising claims.

Each of the companies market their CBD products – salves, gummies, capsules – as a “dietary supplement”; however, the FDA says they have concluded “based on available evidence that CBD products are excluded from the dietary supplement definitions” outlined by federal regulations. The letters point to GW Pharmaceuticals’ CBD product Epidiolex as evidence CBD is a drug, therefore cannot be a dietary supplement.

In the letters, the FDA points out that it’s unlawful to make claims that a product prevents, treats, or cures human, or animal, diseases without “reliable scientific evidence.”

“The FTC is concerned that one or more of the efficacy claims cited above may not be substantiated by competent and reliable scientific evidence,” each letter states.

As of Wednesday, the websites for CDBPure and DiamondCBD – which both feature FDA disclosures that CBD products are not meant to treat or cure any disease – remained online and operational. The website for Relievus had been taken offline.

Last week, the FDA announced they would be holding a hearing in May “to obtain scientific data and information about the safety, manufacturing, product quality, marketing, labeling, and sale of products containing cannabis or cannabis-derived compounds.”

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Canada Sees 17% Price-Per-Gram Increase Post-Legalization

4/11/2019

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Both legal and illegal cannabis prices throughout Canada are up more than 17 percent since legalization, from C$6.85 pre-legalization per gram to C$8.04 post-legalization, according to Statistics Canada figures outlined by Bloomberg.

Online legal market prices have reached as high as C$9.99 per gram since October 17, 2018 – 56.8 percent higher than the C$6.37 average per gram paid in the illicit market, according to the report. Per gram prices at brick-and-mortar retailers hit as high as C$10.73.

Customers in New Brunswick and Manitoba saw the biggest price increases of 30.5 percent and 27.7 percent respectively. British Columbia saw the lowest increases of just 3.7 percent. In the Northwest Territories, post-legalization prices were the highest at C$14.45 per gram – up 13.7 percent. Quebec had the lowest per-gram, post-legalization price of C$6.75, which represents a 15.9 percent increase.

StatsCanada uses self-reported, crowdsourced data to measure the burgeoning post-legalization cannabis economy. According to the report, the agency received 1,129 submissions from consumers via the website between October 17 and March 31 but only 936 passed the editing and screening process.

Since Canada’s federal legalization bill took effect, consumers have been limited in their legal purchases to just flower products. Regulations are under consideration, however, to allow for the manufacturing and sales of THC-infused edibles products. Edibles products are expected to reach store shelves as early as summer’s end and no later than October 17, 2019 – exactly one year after flower products were made legal.

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Massachusetts Bill Would Create Task Force to Curb Illicit Cannabis Sales

4/11/2019

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A bi-partisan bill seeking to curb illegal cannabis sales in Massachusetts was unveiled on Wednesday. The proposal aims to increase legal cannabis market participation, improve public safety, and reduce youth consumption rates.

According to a joint press release from state Sen. Michael Moore (D) and state Rep. Hannah Kane (R) – who co-sponsored the bill – 75 percent of all cannabis sales in the Commonwealth occur in the illicit market.

The measure established a Multi-Agency Illicit Marijuana Task Force that mirrors the state’s anti-tobacco task force. The task force would work with state agencies, law enforcement, and the public to find unlicensed sellers who would be subject to a “foregone tax revenue assessment.” That assessment would bill the illegal operator for the “total estimated forgone tax revenue numerically expressed as the total aggregated percentage of all state and municipal sales and marijuana taxes multiplied by the total value of the identified marijuana or marijuana products illegally cultivated, processed, manufactured or distributed.” Failure to pay would lead to additional fines and interest.

The proposal neither locks out individuals who are subject to the assessment from being awarded a license or participating in the industry nor prevents law enforcement from filing criminal charges.

The measure has the support of the Cannabis Control Commissioner Britte McBride, who urged legalization supporters to support the bill.

“An active illicit cannabis market diverts tax money from the Commonwealth, subverts the public health regulations that the Commission put into place to protect consumers, and undermines public safety. As we strive to establish a safe, responsible industry, the illicit market perpetuates negative stereotypes which can be a barrier to individuals getting a foothold in the legal market.” – McBride, in a statement

The CCC would have a representative on the task force, along with the commissioner of agriculture and representatives from the Department of Public Health, Attorney General’s Office, the State Treasurer’s Office. Two municipal police chiefs appointed by the governor would also serve on the task force, which would be co-chaired by the Colonel of the State Police and Commissioner of the Department of Revenue.

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Connecticut Lawmakers Advance Three Cannabis-Focused Bills

4/10/2019

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A Connecticut bill allowing adults to possess cannabis and expunge low-level possession charges heads to the Senate after passing the Judiciary Committee on a slim 21-19 vote, CT News Junkie reports. Three Democrats crossed party lines and voted against the measure.

The state Legislature’s General Law Committee approved a separate bill to create a taxed and regulated adult-use cannabis industry late last month 10-8, across party lines.

During the hour-long debate, the Republicans and Democrats that opposed the measure said they had concerns about the effect of cannabis legalization on youth and most had adopted the phrase coined by prohibition advocates: “When you legalize you normalize.”

“As the mother of three teenagers, I can’t support legalization. Our kids will say, ‘If it’s legal, how can it be bad?’ Because when you legalize something, you normalize it.” — Sen. Alex Bergstein, the Democratic vice-chair of the committee, during the hearing

Democratic Sen. Dennis Bradley argued that cannabis is already “in every single community” in the state and asserted that the War on Drugs is “a racist initiative” that disproportionately affects minority and poor communities.

The committee also approved bills to ensure that employers have the right to bar cannabis use from the workplace and create a driving under the influence test for cannabis.

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New Mexico Medical Cannabis Changes Spark Confusion for Inmates

4/10/2019

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Registered medical cannabis patients on parole or probation in New Mexico will not face penalties for using their recommended products, according to guidance from the state Corrections Department; however, it is unclear whether that policy also applies to inmates and those awaiting trial.

Legislation signed by Gov. Michelle Lujan Grisham last week included language applying to individuals in state and local supervision which states: “A person who is serving a period of probation or parole or who is in the custody or under the supervision of the state or a local government pending trial as part of a community supervision program shall not be penalized for conduct allowed under the Lynn and Erin Compassionate Use Act.”

The language, however, begs the question, “who is in custody or under state supervision?”

Sen. Gerald Ortiz y Pino, the bill sponsor, told NM Political Report that he reads it as those awaiting trial and “would be subject to the same restrictions that anybody would be in jail or prison” after their release.

Duke Rodriguez, CEO of state-licensed medical cannabis producer New Mexico Top Organics Ultra Health, disagrees with the sponsor’s reading, pointing to a section of the new law that reads: “A qualified patient’s use of cannabis pursuant to the Lynn and Erin Compassionate Use Act shall be considered the equivalent of the use of any other medication.”

“Inmates, by law, must be provided reasonable health care by the state. If medical cannabis is a sanctioned activity by the state, then it seems logical by public policy that these inmates would have reasonable access. I’m not sure why there would be any confusion.” – Rodriguez, to NM Political Report

It’s unclear whether lawmakers will draft or pass new laws to deal with the issue but Rodriguez believes officials will have to fix the issue sooner than later.

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Unilever Announces CBD-Infused Deodorant Product Line

4/10/2019

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Unilever is set to introduce CBD-infused deodorant products later this year under its brand Schmidt’s Naturals, according to a Bloomberg report. Unilever added Schmidt’s to its 400-strong brands in 2017.

Schmidt’s Naturals CEO Michael Cammarata told Bloomberg that he believes CBD “is probably the most powerful ingredient that we’re going to see over the next decade in the personal care market.”

Unilever’s holdings include personal care and beauty products, cleaning agents, and foods and beverages. Schmidt’s does operate independently but Cammarata said the parent company was “definitely part of the [decision-making] process” to market the CBD-infused products.

The deodorant will be sold at Target beginning in September, the report says. Cammarata indicated that CBD-infused deodorants help fight odor and its anti-inflammatory properties helps soothe irritation from shaving.

Unilever did not comment on the report; however, if Schmidt’s deodorants are a success, it is possible that the company could add CBD to many of its other beauty and personal care brands.

Following last year’s legalization of industrial hemp, hemp-derived CBD products are fully expected to permeate the personal care products industry. Already, CVS and Walgreens have pushed CBD products to store shelves in multiple states.

FDA regulations are still awaited, however, for CBD-infused food and beverages; the federal agency has announced a hearing for next month where it will receive public input on the creation of said rules.

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McConnell Supports Legislation to Fix Farm Bill’s Hemp ‘Glitches’

4/09/2019

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Senate Majority Leader Mitch McConnell (R-Kentucky) said he is willing to fix hemp-related “glitches” in the Farm Bill approved by Congress last year, the Associated Press reports. The need for legislative action comes as legal hemp shipments are intercepted by police who can’t differentiate between a legal and illegal crop.

“Some glitches remain to be worked out, and some of it may require legislation … I’m prepared to do my job … all the way into the end zone if it requires additional legislation.” — McConnell to the AP.

Two truck drivers were jailed last February in Oklahoma and Idaho after being stopped by police. In Oklahoma, officials impounded more than 17,000 pounds of legal hemp even after the purchaser provided them with paperwork. In Idaho, law enforcement used a portable THC test and drug-sniffing dogs to levy drug trafficking charges.

U.S. Department of Agriculture Undersecretary Greg Ibach told the AP said the agency is willing to work with other federal agencies to help develop testing protocols. The USDA is responsible for developing and issuing the regulations and guidance for commercial hemp production in the U.S. In February, the agency anticipated to issue those rules “in the fall of 2019 to accommodate the 2020 planting season.”

Kentucky Agriculture Commissioner Ryan Quarles – from McConnell’s home state – said officials throughout the U.S. need to know “what hemp is and what hemp is not” so hemp shipments can move freely interstate. In Kentucky, about 1,000 farmers will grow hemp in the state this year. Last year, Kentucky’s hemp processors earned $57.75 million; up from $16.7 million the year prior.

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No Hearing, No Vote for Florida Adult-Use Cannabis Bill

4/09/2019

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A recreational cannabis bill in Florida will receive neither hearing nor vote in either legislative chamber this session, the Orlando Sentinel reports. The bill sponsor Rep. Carlos Guillermo Smith said, despite the bill’s failure, “it created a lot of discussion and dialogue.”

“It got no hearing, no debate, no vote. Just like they always do,” Smith, a Democrat, told the Sentinel.

Florida House Communications Director Fred Piccolo told the Orlando Business Journal that while no bill is officially dead before the end of the legislative session, bills in the House require a hearing before they can be voted on – and that includes bills attached to other pieces of legislation. The Senate does not require such a hearing.

Smith’s co-sponsor on the measure, Rep. Michael Grieco, said legalization in Florida was coming “one way or another” either next year or by 2022 either via the legislature or ballot initiative.

“With bipartisan efforts in criminal justice reform reaching new levels this year, it is the right time for Florida to start having a real conversation about legalizing marijuana for adult use.” – Greico, to Orlando Weekly in February when announcing the bill’s introduction

In 2016, 71 percent of Floridians voted to add a constitutional amendment legalizing medical cannabis – those amendments require 60 percent support to pass. Lawmakers have proposed a bill requiring 66.3 percent of the vote to change the state constitution. A February poll from the University of North Florida found 62 percent supported a regulated adult-use market.

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Study: Medical Cannabis Cancer Patients See ‘Significant’ Symptom Reduction

4/09/2019

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Researchers at the Minnesota Department of Health found that cancer patients enrolled in the state’s medical cannabis report “significant reduction” in the severity of symptoms in the first four months of cannabis treatment, according to a WCCO report.

The two-year study uses self-reported data from 1,120 cancer patients enrolled in the state’s medical cannabis program before and after cannabis treatment. According to the study, 27 percent of the patients achieved 30 percent or greater symptom reduction of fatigue, while half experienced less vomiting. Just over 10 percent reported side effects such as dry mouth, fatigue, and increased appetite.

“Medical cannabis was well tolerated, and some patients attained clinically meaningful and lasting levels of improvement,” concludes the report, which was published in the Journal of Oncology Practice.

According to Jan. 2019 state health department data 1,300 of the state’s 14,481 enrolled patients have a cancer diagnosis. Separately, the health department found in 2016 that 60 percent of program participants found “a high degree of benefit from medical cannabis.”

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Florida Officials Lay Groundwork for Medical Cannabis Edibles

4/08/2019

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The Florida Department of Agricultural and Consumer Services have finalized rules allowing licensed medical cannabis companies to make and sell infused edibles, according to a report from public radio station WMFE.

Holly Bell, director of the agriculture department’s cannabis program, said that a major concern for regulators is to keep the products safe from allergy contagions and other impurities that could cause adverse effects.

“That’s our concern because a lot of times the people taking the medical marijuana have compromised immune systems, so we want to especially be diligent and make sure they’re safe.” – Bell, to WMFE

The state Department of Health is next to issue their rules on cannabis-infused edibles. Those rules are expected in the coming weeks and the health department will hold a public input tour on those proposals before they are adopted, Bell indicated.

Laying the groundwork to allow edibles in the state’s medical cannabis program follows legislative changes last month to allow enrolled patients access to smokeable flower products. Dispensaries in Florida are expected to begin selling flower this summer; it’s unclear when edible products might reach store shelves.

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Canadian Banks Shut Out U.S. Cannabis Companies Due to Federal Law

4/08/2019

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At least two Canadian banks are refusing to do business with U.S.-based cannabis companies due to cannabis’ Schedule I status under U.S. law, according to a Bloomberg report. Both Bank of Montreal and Toronto-Dominion are refusing to provide services to the companies until federal law changes in the U.S.

Canada legalized adult-use cannabis last year.

U.S. lawmakers are considering legislation to strengthen the Tenth Amendment – known as the STATES ACT – which would exempt the Controlled Substances Act from applying to state-approved cannabis programs; but, according to Cowen analyst Jaret Seiberg, that law might not be enough to convince banks to work with the sector.

Instead, Seiberg said the SAFE Act – which would allow banks to work with state-legal cannabis companies – would be a better prospect for getting Canadian financial firms on board with working with U.S. cannabis companies.

Other Canadian banks are willing to serve Canadian companies with reach into the U.S. The Bank of Montreal worked with Canopy Growth Corp on a $150 million equity financing deal, while Bank of Nova Scotia and Royal Bank of Canada have advised some firms on takeovers. Bank of Montreal CEO Darryl White indicated that the bank would be willing to do business with U.S.-only cannabis firms if U.S. law is changed.

“We’ll look at it then, but we have nothing in our business plans today that is dependent on pushing our cannabis business into the United States.” – White, during a press conference after the bank’s annual meeting, via Bloomberg

Toronto-Dominion CEO Bharat Masrani said the bank would re-consider its position if the SAFE Act is approved in the U.S. The institution has so far declined to do any investment or banking deals with any cannabis firms.

“We would not be partaking in that business as the laws are currently. Depending on what comes out, we’d look at it and make sure it is appropriate for TD in terms of our risk appetite and whether it’s right for our customers.” – Masrani, during a press conference, via Bloomberg

The SAFE Banking Act has not yet been scheduled for a vote in either legislative chamber.

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Farmers Re-Added to Proposed Hemp Advisory Council in Indiana

4/08/2019

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Indiana lawmakers have re-added farmers to the membership of a proposed hemp advisory committee if the crop is legalized in the state, according to an Indiana Public Media report. Senators had removed farmers from the committee, but they are included in the House version.

In addition to farmers, the committee would include an elected sheriff, a member of the Midwest Hemp Council, the directors of the agriculture, health, and financial institutions departments, the superintendent of the state police, the chairman of the alcohol and tobacco commission, Indiana Farm Bureau, Indiana Crop Improvement Association and Agribusiness Council of Indiana appointees with hemp experience, and the state seed commissioner who would serve as a nonvoting chair. All state officials could also appoint a designee.

Republican state Rep. Christy Stutzman told IPM that some farmers in her constituency have already planned “several hundred acres” of hemp crops.

Justin Swanson, a hemp lobbyist, said hemp flower products are “the easiest way for Hoosier farmers to enter this really emerging hemp market with the least amount of overhead.”

Indiana is following the lead of several other states who are seeking to formally legalize hemp in their state following federal rule changes last year legalizing industrial hemp production.

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Industrial Hemp Removed from Texas Controlled Substance List

4/05/2019

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Beginning today, industrial hemp is no longer a controlled substance in Texas, East Texas Matters reports, and Agricultural Commissioner Sid Miller expects “more hemp to be grown” than the state “could ever process.”

“We want the processing facilities to be right here in rural Texas and bring those jobs to rural Texas.” – Miller, to East Texas Matters

Miller also indicated that the new industry wouldn’t be heavily regulated in the state, saying regulators would enforce only the minimum standards set by the federal government.

“We won’t put any extra burden on the farmers or the processors, we don’t want any extra regulation, we’re not for that,” said Miller in the report.

Texas Farm Bureau spokesman Gene Hall lauded the law changes, calling hemp “a crop that makes sense” for the state due to its drought-resistant properties; although he indicated there would be a strong testing program due to hemp’s similarity to the illegal, high-THC, cannabis plant.

The legalization of hemp also means the legalization of hemp-derived CBD in the state, Miller said.

“Anything that can medically take away someone’s pain or relieve their tensions or whatever they’re taking it for, we should use it,” he said in the report.

However, Shannon Edmonds, staff attorney with the Texas District and County Attorneys Association, indicated the law changes don’t clear up the legality of hemp products in the state.

“It’s really not going to have any direct impact other than to confuse people even more,” Edmonds told NBCDFW.

Lisa L. Pittman, a cannabis law attorney, told NBCDFW that removing hemp from the state’s controlled substances list doesn’t actually make hemp legal and the legislature needs to take action to remove the criminal penalties.

Texas’ medical cannabis program permits only low-THC products, akin to hemp-derived CBD, with limits of just 0.5 percent THC – the federal Farm Bill defines hemp as containing 0.3 percent THC.

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New Mexico Gov. Signs Decriminalization, Medical Cannabis Reforms

4/05/2019

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New Mexico Gov. Michelle Lujan Grisham has signed legislation making critical changes to the state’s medical cannabis program and another decriminalization measure, according to NM Political Report.

The medical cannabis reforms include reciprocity with other state programs, allowing medical cannabis in schools, creating personal production licenses, extending renewal periods for patients from one to three years, and prohibiting employers from firing someone for being enrolled in the medical cannabis program, according to the NM Political Report.

The decriminalization measure replaces criminal with civil penalties or fines.

The law also protects parents from losing custody of their children if they are registered in the state’s medical cannabis program and protects children who are also patients from being targeted by the Children, Youth and Families Department. Youth patients will also be allowed to use medical cannabis products on some school properties so long as it does not disrupt the “education environment,” the report says. The law includes language allowing schools to opt out if they believe their federal funding could be at risk and language protecting children from being denied access to a school or classroom because they are medical cannabis patients.

The personal production licenses will allow patients to grow their own cannabis and send it to a state-licensed manufacturer for processing. The manufacturer – which are non-profit in the state – could process the patient-grown flower into edibles or extracts.

The law also includes language permitting medical cannabis consumption areas at licensed establishments approved by the New Mexico Department of Health.

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Israel OKs Home Grows Under Cannabis Decriminalization Reforms

4/05/2019

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On April 1, Israel decriminalized adult cannabis use including home-growing and low-level possession, according to a Forbes report. Under the reforms, individuals can grow cannabis without criminal penalties and public possession will now be met with fines.

During comments at the fourth annual CannaTech conference in Tel Aviv, former Prime Minister Ehud Barak quipped that Israel is updating its motto to “the land of milk, honey, and cannabis.”

“Some 35 countries have already legalized cannabis to a certain extent, either for medical or sometimes even recreational use. Two-thirds of US states have approved medical cannabis; one-third [have approved] recreational use. … The future of cannabis belongs to the bigger, faster and more assertive players which will enter directly into the markets.” – Barak, during his CannaTech keynote address.

Israel proposed new medical cannabis guidelines in 2017 and, according to the Ministry of Health, more than 550 farms have submitted requests to grow medical cannabis crops. The new guidelines, which take effect “imminently,” will allow patients to purchase medical cannabis in pharmacies. Currently, Tikun Olam holds 40 percent of Israel’s medical cannabis market share.

Tikun Olam USA Chief Marketing Officer Stephen Gardner said that by legalizing medical cannabis more than a decade ago, Israel “has allowed companies … as well as medical, research and educational institutions, to undertake the groundbreaking research that has created the basis for some of the advancements in this fast-growing industry.”

“If one is to look at a country that is at the forefront of the cannabis industry, they need to consider Israel at the top of their list,” Gardener said. “From the early discoveries from Dr. [Raphael] Mechoulam to the significant work in identifying the endocannabinoid system, Israel has been leading the path for some of the most significant advancements in cannabis science.”

Last year, the Israeli Parliament passed an amendment to the Dangerous Drugs Ordinance that allows firms to export medical cannabis from Israel.

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Cannabis Tax Revenue to Fund Police Grants in Washington State

4/05/2019

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In the Washington State legislature, Rep. Andrew Barkis (R-Olympia) has sponsored an amendment to the House budget allocating 18 million dollars to police departments around the state to fight drug addiction in homeless camps over the next two years. The program will be funded with cannabis tax money; however, there are no restrictions on how police can spend the grants.

Earlier in the session, Barkis’ proposal failed in the House Appropriations Committee but, after watching a widely publicized documentary on homelessness and drug addiction in Seattle, he asked his staff to draft the budget amendment. Upon hearing Barkis’s impassioned plea — his son suffers from heroin addiction and until recently was homeless in Seattle — the amendment passed with a bipartisan vote.

“Mr. Speaker, I watched a documentary or a news report the other day. If we don’t take these steps, all we are going to hear in the future is more bills named in memory of somebody, and I pray to God that it’s not named in memory of my son. Mr. Speaker, help me today in support of this amendment.” — Washington state Rep. Andrew Barkis, in testimony to the House

The budget passed on Friday, cementing Barkis’s amendment in the House Budget.

Most of Washington’s cannabis tax money currently goes to funding Medicaid, including $262 million in 2018, according to a KING 5 report. Another slice of the pie goes to funding substance abuse and prevention programs, while a large portion is sent back to cities who do not have cannabis moratoriums. A 2017 adjustment allows cities to spend their portion of cannabis tax revenue as they choose, some of which is used to fund local law enforcement. If Barkis’s amendment remains in the final budget, however, this will be the first money from cannabis taxes sent directly to local law enforcement in Washington state.

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Colorado Cannabis Market Faces Potential Major Changes

4/04/2019

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Lawmakers in Colorado are considering bills allowing on-site cannabis consumption and delivery in the state while another bill adding autism to the state’s medical cannabis program has made its way to Gov. Jared Polis’ desk.

The medical cannabis for autism measure, HB1028, also removes the provision in the state’s medical cannabis law requiring specific physicians to certify a juvenile has a disabling medical condition acknowledging that condition violated the state constitution. According to the bill, if the recommending physician is not the patient’s primary care physician, the physician will review the patient record and make the determination.

Polis is expected to sign the measure, which passed the House unanimously and the Senate 31-4.

Moving from the House Business Affairs and Labor Committee to the Finance Committee, HB1230 would allow on-site consumption at municipality-approved cannabis businesses. According to the bill text, such businesses could be permanent, temporary – such as popups – or mobile. The law would place limits of 3.5 grams of flower, one-half gram of concentrate, and 10 milligrams of THC for edibles. If approved, on-site consumption would be allowed in the state Jan. 1, 2020. The bill passed the committee 7-4.

The House business committee also moved the delivery bill, HB1234, to the finance committee on a 6-3 vote. The measure would allow sales of medical cannabis to begin on Jan. 2, 2020 and one year later for recreational sales. The bill limits delivery orders to once-per-day-per-customer.

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Georgia Passes Medical Cannabis Reforms

4/04/2019

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Georgia’s legislature has passed comprehensive medical cannabis reform, creating a regulated system for cultivation and distribution and fixing a long-standing problem in the state’s medical cannabis program that only allowed patients to possess a small amount of cannabis, according to an 11 Alive report.

The bill creates two classes of cultivators: class one for large operations and class two for small businesses. Class one operators would be allowed to cultivate, process flower into oil, and operate up to five dispensaries. Class two businesses are capped at 20,000 square feet of cultivation and can operate up to three dispensaries. The state Department of Health would issue the licenses. The Class one businesses are expected to be able to invest at least $10 million into the state.

The bill does not increase the THC thresholds allowed under the medical cannabis law and, initially, it will be available in pharmacies.

According to the report, the bill was the final to pass the legislature before the end of the state’s legislative session. It passed the House 147-16, and the Senate 34-20, just before midnight.

Republican Gov. Brian Kemp told the Atlanta Journal-Constitution the bill is “the right thing to do.”

“Over the years, I’ve met with children who are battling chronic, debilitating diseases. I’ve heard from parents who are struggling with access and losing hope. This compromise legislation is carefully crafted to provide access to medical cannabis oil to those in need.” – Kemp, to the AJC

Kemp is expected to sign the bill, making Georgia the 34th state with a legal medical cannabis program and industry.

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Vireo Acquires Massachusetts Cannabis Firm

4/04/2019

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Vireo Health International has acquired Massachusetts licensed cannabis company Mayflower Botanicals in a combination cash and stock deal. It’s the company’s third acquisition since it began trading on the Canadian Securities Exchange.

Vireo now operates in nine states throughout the U.S. They also acquired 73 acres of land zoned for medical cannabis production, processing, and distribution. The move into Massachusetts marks their first move into a state with a recreational cannabis program.

CEO Kyle Kingsley, a board-certified emergency room physician, said it is “time to recognize that a public health policy focused on adults replacing their consumption of alcoholic beverages and tobacco products with cannabis has the potential to save thousands of lives each year.”

“As we expand into adult-use states such as Massachusetts, our physician-led team will provide consumers with medically- and scientifically-based products and advice designed to highlight the potential health benefits of replacing alcohol and tobacco with cannabis.” – Kingsley in a press release

According to a LoHud.com report, Vireo has spent millions of dollars lobbying in New York for recreational cannabis legalization; which was dropped from the state budget last month. Vireo COO Ari Hoffnung told LoHud the company would “continue working with the Legislature” to end cannabis prohibition in the state.

In an interview on radio station WAMC, Gov. Andrew Cuomo said the state would legalize cannabis before the legislature adjourns in June.

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FDA to Hold Public Hearings on CBD

4/03/2019

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The Food and Drug Administration is set to host a public hearing on CBD next month “to obtain scientific data and information about the safety, manufacturing, product quality, marketing, labeling, and sale of products containing cannabis or cannabis-derived compounds,” the agency announced on Tuesday.

According to a federal register document, the federal Farm Bill passed last year removes hemp from the controlled substances act while “explicitly” preserving the FDA’s authority to regulate cannabis or cannabis-derived compounds. Several states with legalized hemp cite the FDA’s authority over CBD as justification for banning it from foods and beverages.

“Therefore, because the 2018 Farm Bill did not change FDA’s authorities, cannabis and cannabis derived products are subject to the same authorities and requirements as FDA-regulated products containing any other substance, regardless of whether the products fall within the definition of ‘hemp’ under the 2018 Farm Bill,” the document says.

The agency notes they are aware that some companies are marketing CBD “in ways that violate the [Food, Drug & Cosmetic] Act and that they have taken action against “companies illegally selling CBD products that were intended to prevent, diagnose, mitigate, treat, or cure serious diseases, such as cancer, and that had not obtained new drug approvals.”

The FDA claims that it had “safety concerns” about CBD pharmaceutical Epidiolex which was approved in the U.S. last year. The agency alleges that the drug carries a “potential for liver injury” and other side effects.

The agency is accepting public comments online, in writing, and during the hearing.

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LA County, California Using Algorithms to Expunge Cannabis Convictions

4/03/2019

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Prosecutors in Los Angeles County, California are working with nonprofit tech organization Code for America to erase or reduce as many as 50,000 old cannabis convictions, the Associated Press reports. The partnership will use computer algorithms to find convictions eligible for reduction or expungement under the state’s legalization law.

Officials in San Joaquin County are also working with the group to wipe out 4,000 such convictions.

“This collaboration will improve people’s lives by erasing the mistakes of their past and hopefully lead them on a path to a better future.” – LA County District Attorney Jackie Lacey, in a statement to the AP

San Francisco County prosecutors have previously worked with Code of America to reduce or drop 9,300 low-level cannabis convictions dating back to 1975. San Francisco District Attorney George Gascon decided to use tech to locate potential cases after just 23 people hired lawyers to take advantage of the criminal reforms included in the 2016 law.

Jennifer Pahlka, executive director of Code for America, said their Clear My Record algorithm “changes the scale and speed of justice and has the potential to ignite change across the state and the nation.”

“When we do this right, we show that government can make good on its promises, especially for the hundreds of thousands who have been denied jobs, housing and other opportunities despite the passage of laws intended to provide relief,” she said in the report.

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West Virginia Gov. Signs Banking Bill for Medical Industry

4/03/2019

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West Virginia Gov. Jim Justice has signed legislation allowing medical cannabis companies to access banking services in the state.

According to the bill text, it authorizes the treasurer to select financial institutions to provide services to the industry via a competitive bidding process. The banks would be able to handle medical cannabis fees and taxes paid to the state.

“I always have, and I always will fully support medical cannabis for our people who are in so much pain that their physicians deem it absolutely necessary. I will say, adamantly, I am 100 percent against recreational marijuana. But we have a lot of people and families out there who are truly hurting and if medical cannabis can help, we need to do everything we can to make life better for those West Virginians.” – Gov. Justice in a press release

The governor indicated the bill ensures the state remains in compliance with federal law.

The legislation also creates the Medical Cannabis Program Fund in order to collect the fees, penalties and taxes; and the Treasurer’s Medical Cannabis Fund that allows the treasurer to charge fees for providing banking services to cannabis industry operators. Those fees would be used for expenses incurred by the department, industry oversight, and compliance.

Medical cannabis growers and processors in West Virginia must pay a non-refundable $5,000 application fee and a $50,000 permit fee, which is refundable if a permit is not granted. Dispensaries must pay a $25,000 application and $10,000 permit fee.

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