Curaleaf Acquires Select Parent Cura Partners for Near $950M

5/02/2019

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Curaleaf Holdings Inc. has agreed to acquire Cura Partners, Inc. in an all-stock deal worth nearly $1 billion, the company announced on Wednesday. Portland, Oregon-based Cura Partners owns wholesale cannabis brand Select, which is sold at more than 900 retailers throughout the U.S.

Joseph Lusardi, CEO of Curaleaf, called the deal another step in Curaleaf’s “journey to create the most accessible cannabis brands in the U.S.”

“The combination of Curaleaf and Select is a perfect fit. With our industry leading capacity, expansive retail distribution network and Select’s impressive sales and marketing capabilities, we intend to meaningfully accelerate our topline growth trajectory with the addition of the Select Oil product range.” – Lusardi, in a press release

According to a report from Barron’s, the companies combined revenues reached $205 million last year – more than any other cannabis company in the world.

On a conference call, Curaleaf Executive Chairman Boris Jordan called the deal all about “synergies” as the operation expects a 50 percent reduction in Select material costs and 25 percent savings in processing costs. The deal includes Select’s manufacturing, processing, distribution, marketing, and retail arms, along with Select intellectual property.

Select CBD products are not included in the $948.8 million deal.

Curaleaf already operates in 12 states, with as many cultivation sites, 44 dispensaries, and 11 processing sites. The acquisition is scheduled to close later this year.

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Senator Crapo speaking to committee

Senate Banking Committee GOP Chair May Block SAFE Banking Act

5/01/2019

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Idaho Sen. Mike Crapo, the Republican chairman of the Senate Banking Committee, said he would not commit his committee to considering the SAFE Banking Act, a piece of federal legislation that would give protections to banks who work with state-legal cannabis companies.

The SAFE Banking Act became the first piece of major federal cannabis reforms to advance out of a key Congressional committee in March after passing 45-15 through the House Financial Services Committee; it is expected to receive a hearing on the full House floor by June.

According to Sen. Crapo, however, cannabis’ federally illegal status may deter the committee he chairs from considering the legislation. “As long as cannabis is illegal under federal law, it seems to me to be difficult for us to resolve this,” he said.

The chairman also seemed to suggest that the issue of cannabis industry banking should be tackled by the Department of Justice, not Congress.

“I cannot make a commitment as to whether we will take up legislation yet because we want to see how we can resolve this difference between criminal law and our financial law,” he said.

Crapo’s comments were made during a conference for the Independent Community Bankers of America (ICBA), according to Politico.

Notably, Crapo’s comments before the ICBA contrast directly with the organization’s own priorities. As Marijuana Moment reports, the ICBA supports, “Advocating federal legislation establishing a safe harbor from federal sanctions for banks that serve cannabis-related businesses in states where cannabis is legal under state law.”

The bipartisan bill has been co-sponsored by more than one-third of the House and one-fifth of the Senate.

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Harvard & MIT Receive $9M Grant for Cannabinoid Studies

5/01/2019

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Bob Broderick, a Manhattan, NY-based cannabis industry investor, has donated $9 million to MIT and Harvard for research on cannabis and its effects on the brain, according to an NPR-affiliate WBUR report. Broderick said the funds could help break the taboo against researching the plant and get “two great cultural institutions involved in the discussion of cannabis in the country.”

“People take risks when they say, ‘I’m going to start doing cannabis work.’ For a young researcher at MIT or Harvard to say, ‘I’m going to pivot my career and study the effects of cannabis,’ I don’t think that’s something that would have happened five years ago.” – Broderick to WBUR

Broderick suggests his is the largest-ever private gift for cannabis research – which is out-of-reach for many researchers who are unable to get funding to study cannabis due to its federal Schedule I status; however, he doesn’t think it will be the largest gift for very long.

Last year, the National Institutes of Health announced support for more than 330 cannabinoid-related projects totaling $140 million.

Harvard Medical School professor of neurobiology Bruce Bean told WBUR that, save for THC and CBD, the scientific community “really know nothing” on many of the hundred other cannabinoids they know about.

Just about a year ago, the University of California, San Diego received a $4.7 million grant to study the effects of medical cannabis on autism.

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Clear plastic garbage bags that have been stuffed with commercial-grade cannabis nugs.

Oregon Senate Passes Bill to Halt Cannabis Licensing for 2 Years

5/01/2019

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An Oregon bill to place a two-year moratorium on cannabis licensing backed by Gov. Kate Brown has passed the Senate and moves next to the House, the Portland Mercury reports. The legislation comes nearly three months after the state Liquor Control Commission reported the state had more than 6.5 years of oversupply with the current market’s demand.

In a statement, Democratic State Sen. Floyd Prozanski said the bill “will protect the existing legal market,” in the state.

“We currently have a flood of cannabis production happening in our state. There is a ‘green rush’ happening in our state right now and, while we support a healthy and thriving new cannabis industry, the oversupply has caused plummeting product costs. Much of the product created by this oversupply is going into the illicit market that legalized cannabis was intended to curb.” — Prozanski, in a statement, via the Portland Mercury

The measure, deemed “emergency legislation,” passed the Senate 18-0 on Tuesday; it failed in the same chamber 17-3 last month, according to a Willamette Week report.

According to the CanbyNow Podcast, the price-per-gram has dropped from $14 in 2015 to less than $7 by the end of last year. A study released last month by Oxford Treatment Center found Oregon had the lowest price for “high quality” legal flower products with an average of $210.75 per ounce.

In testimony in support of the measure, Obie Strickler, CEO of licensed producer Grown Rogue, said the industry needs to remain “financially healthy” to remain beneficial to the state.

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Proposed Detroit Cannabis Facility Offers Free Training to People With Cannabis Convictions

5/01/2019

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A proposed cannabis processing and dispensary facility in Detroit, Michigan will include an industry training center that will offer free classes for those with prior cannabis-related convictions, according to a Fox 2 report. The announcement comes the day after state regulators announced they would begin licensing adult-use businesses in the fall.

Maurice Morton, a partner with Green Cure Wellness Inc. & Southeast Provisioning LLC and former Wayne County assistant prosecutor — who also headed the major drug unit — said the training center for budtenders, processors, and entrepreneurs is “100 percent geared toward Detroiters.”

If approved, the facility will refurbish a derelict structure in the city into several growing centers, two processing businesses, and a dispensary.

On Tuesday, the Department of Licensing and Regulatory Affairs announced the creation of the Marijuana Regulation Agency, which will regulate both the state’s medical and recreational industries. Newly appointed MRA Executive Director Andrew Brisbo said the agency is set to issue “emergency rules” for the adult-use industry by the summer.

“Giving local municipalities, other state agencies, and potential business owners enough time to plan and prepare will allow for a successful rollout of the new adult-use marijuana law,” Brisbo said in a press release.

The Agency will hold four public meetings per-year to receive public input for the state’s cannabis rules and regulations.

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KushyPunch Releases First Cannabis-Infused, Sugar-Free Gummy

4/30/2019

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Is this cannabis’ “Diet Coke Moment”?

Los Angeles, California — Award-winning SoCal cannabis brand KushyPunch releases the very first sugar-free cannabis gummy on the market, delivering a game-changing new edible option for consumers with strict dietary requirements.

This new lychee sugar free THC gummy is a healthier take on their iconic and top-selling 100mg strawberry sativa gummy, which was recently featured at the top of a Los Angeles Times round-up on edibles.

Containing just 2.5 calories per dose, and with a low glycemic index and insulin response, this gummy is geared towards those looking to minimize sugar intake without compromising on taste or quality.

“Coca-Cola spent more than 20 years working on Diet Coke. They wouldn’t release anything under their brand name that was less than perfect,” starts Ruben Cross, founder and CEO of KushyPunch.

“We applied that same mentality to our new sugar-free gummy. We wanted to get this exactly right before it became part of the Kushy brand.”

KushyPunch’s sugar-free gummy has been a long time in the making for Cross, who was recently named one of High Times’ top 100 cannabis industry professionals. His initial foray into cannabis in 2014 was spurred by a desire to create a consistent, healthy product for patients with specific dietary needs and limited consumption options.

“When I looked at the edible market back in 2014, I saw a lot of high calorie, high carbohydrate, high sugar products that were really inconsistent in their THC levels and very vague when it came to dosing,” Cross told leading cannabis publication Leafly in 2018.

“Personally, I’m a health nut but I also have asthma, so my cannabis needs were pretty specific. I set about trying to create a product that worked for me: potent, consistent, easy to consume, and — crucially — healthy.”

But until now, a sugar-free version of their award-winning and iconic sativa gummy that is up to the brand’s high standards proved elusive.

“We didn’t want to compromise on anything, which is why it took us so long to release this product,” he states.

“Over the years, we created and tested many iterations of the sugar-free gummy using a variety of ingredients, flavors and sweeteners. It wasn’t until we landed on this recipe that we felt it was ready to be released.”

“In terms of taste alone, this is my favorite KushyPunch product, hands down,” adds Cross. “Finding the right consistency is the hardest part,” adds KushyPunch’s chief scientist Carolina Vasquez Mitchell, a notable honoree of Dope Magazine’s Outstanding Women in Cannabis. “It’s not as simple as swapping out our regular syrup for a substitute like stevia. We tried about 20 different recipes and many different ingredients, and we all felt like this was really it.”

“With so many people turning to cannabis for relief and wellness, our new sugar-free gummy allows patients to ingest only the healthiest, natural ingredients and to dose with absolute confidence,” said Ruben.

KushyPunch’s sugar-free lychee gummy is available in dispensaries across California from April 2019.

If you would like to review this product, or interview Ruben Cross, reach out to ross@kushypunch.com.

Key Facts About KushyPunch’s Sugar-Free Gummy

  • The first cannabis-infused sugar-free gummy on the market
  • 100% natural lychee flavor
  • 100mg of THC from full-spectrum cannabis oil
  • No artificial colors or sweeteners
  • 2.5 kcal per serving
  • Low glycemic index and low insulin response
  • Non-cariogenic, making it healthier for your teeth
  • Tested by an ISO certified laboratory

About KushyPunch

KushyPunch is one of Southern California’s iconic and award-winning edible brands. Best known for its line of top-selling full spectrum gummies, KushyPunch has built its reputation on delivering a consistent, full body experience for patients and recreational consumers across California.

To learn more, visit https://kushypunch.com/

It’s sister brand KushyCBD brings the best practices of KushyPunch into the emerging CBD market. Created and tested in state-of-the-art facilities with the highest quality full spectrum oil, KushyCBD’s diverse product line includes their classic gummy, an all-in-one vape, omega-3 rich gel caps, and a sublingual mango tincture.

To learn more, visit https://kushycbd.com

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Looking out the passenger window of a moving car.

Massachusetts Gives Preliminary Approval to Cannabis Delivery

4/30/2019

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The Massachusetts Cannabis Control Commission (CCC) has given preliminary approval to allow cannabis delivery services, the Associated Press reports. The plan was approved 4-1 but will need final approval after officials develop regulations.

For the first two years, delivery businesses would be limited to social equity applicants – those disproportionately impacted by previous cannabis laws. The draft rules would allow delivery businesses to pick up cannabis from retailers and deliver it to residences in municipalities where commercial sales are permitted.

“Delivery is an important thing to do. I believe we’re ready. This is going to make it more accessible for consumers… and it’s a very important thing from a social equity standpoint, because of the lower barriers to entry in terms of the capital requirements.” — Cannabis Commission Chairman Steve Hoffman, via the Boston Globe

During last week’s meetings, the CCC also discussed providing application fee waivers and reducing the first annual license fee for social equity and Economic Empowerment Program applicants, eliminating the $50 patient registration fee, developing potential potency limits, adding post-traumatic stress disorder to the list of qualifying conditions for medical cannabis, adding veterans to the Social Equity Program, and increasing patient caps for caregivers, according to a press release.

The agency also discussed stronger penalties for companies that violate licensing limits. Last month, regulators launched an investigation into Sea Hunter Therapeutics and Acreage Holdings alleging that they used shell companies to thwart the state’s six-total dispensary rules.

Next month, regulators are expected to deliberate issues related to social consumption, which could be included during the commission’s Fall regulatory process.

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Washington Passes Bill Reversing Misdemeanor Cannabis Convictions

4/30/2019

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On Saturday, April 27, a bill in Washington state requiring courts to vacate misdemeanor cannabis convictions upon request passed the Senate for the second time and is now on its way to the desk of Gov. Jay Inslee (D). The action came shortly after the House passed an amended version and despite opposition from the Washington Association of Sheriffs and Police Chiefs.

The bill, SB 5605, follows the governor’s Marijuana Justice Initiative, which provides a process for pardoning misdemeanor cannabis convictions. Like the governor’s “initiative,” applicants for the vacancy must have been 21 at the time of their arrest.

By vacating a conviction, eligible Washingtonians will have all references to the conviction removed from their record, allowing them to answer “No” when asked the question “Have you ever been convicted of a crime?” on housing or job applications. The court may choose not to vacate if applicants have criminal charges pending, if fewer than three years have passed since the terms of the sentence were met, or if the applicant has been convicted of a new crime.

According to a report prepared by the Marijuana Arrest Research Project, there were 240,000 possession arrests in Washington between 1986 and 2010. The report also found communities of color were disproportionately affected by cannabis arrests. Proponents of the legislation say that, by passing this bill, Washington will join other states trying to reverse the damage done to communities of color by unjust cannabis laws.

The bill was pushed for heavily by The Cannabis Alliance, a cannabis industry trade organization of which Ganjapreneur is a supporting member. “We put our time, energy and resources behind this effort because our membership voted ‘Expunging records for cannabis convictions’ as their #2 priority for this legislative session,” said Cannabis Alliance Executive Director Lara Kaminsky. 

 

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A freshly trimmed cannabis nug lying on its side on a wooden table.

Connecticut Lawmakers Want 20% Overall Cannabis Tax Rate

4/30/2019

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Connecticut lawmakers are seeking an overall tax rate of 20 percent on adult-use cannabis products, the Hartford Courant reports. Under the plan, the proceeds would be sent to cities and communities that have been most impacted by the War on Drugs.

Lawmakers in the state are debating various cannabis legalization-related bills after they moved out of their respective committees in late March and earlier this month. House Speaker Joe Aresimowicz, a Democrat, opposed the idea of earmarking the funds – not because of where they are going but because earmarks are “really hard to live up to in a changing economy and a changing budget process.”

Aresimowicz said if the legislature doesn’t come up with a compromise on legalization before June 5 they might call a special session to come to an agreement.

The tax rate plan would keep Connecticut’s cannabis taxes on par with neighboring Massachusetts and includes a local option that would allow municipalities to add their own 3 percent sales tax.

“Naturally, we don’t want to incentivize anybody to go over the border to Massachusetts if they are going to purchase cannabis. We tried to keep our rate consistent with the overall effective rate of where Massachusetts is.” — Rep. Jason Rojas, via NBC Connecticut

Earlier this month, the Legislature’s Judiciary Committee approved cannabis charge expungement bill, a measure to ensure employers have the right to ban cannabis from the workplace, and legislation to create a driving under the influence test for cannabis. The adult-use bill was approved by the General Law Committee in late March.

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Iowa Bill Eliminating Medical Cannabis THC Caps Moves to Gov.

4/30/2019

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The Iowa Senate has approved a bill to eliminate the 3 percent THC cap on medical cannabis products, moving it on to Gov. Kim Reynolds for her signature, according to a KHQA report. In lieu of the potency cap, dispensaries would not be allowed to sell more than 25 grams of medical cannabis during a 90-day period.

While the measure does not expand the qualifying conditions list, the law does change “untreatable pain” as an approved condition to “severe and chronic pain.” According to the state Department of Public Health, 58 percent of the program’s patients qualify for untreatable pain. It also allows nurse practitioners and physicians assistants to certify medical cannabis patients for the program – as of Apr. 18, there are 2,538 registered patients and 666 physicians sighed up to certify.

The bill, which passed 40-7 on the last day of the session, removes restrictions blocking felons from the program. Notably, the bill still does not allow patients to purchase flower products but eliminating the THC cap will allow them to manufacture and sell high-potency products like tinctures.

“I give you my word: This is not a step in the direction of recreational use of marijuana. It’s a step to help people who have a lot of pain.” — Sen. Brad Zaun, R-Urbandale, during a Senate floor debate, via KHQA

Just last week, the legislature sent Reynolds, a Republican, a bill legalizing industrial hemp production in the state. Reynolds is expected to sign the hemp bill but has previously opposed expanding the medical cannabis program.

Last year, the governor’s spokesperson told the Des Moines Register that Reynolds “believes further study would be needed before expanding the program.” She also opposes broad recreational legalization. Her office has not indicated whether or not she plans on signing the expansion law.

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Missouri Sets Number of MMJ Facility Licenses

4/29/2019

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The Missouri Department of Health and Senior Services will initially license 60 medical cannabis cultivation facilities, 86 infusion manufacturing facilities, and 192 dispensaries, KHQA reports.

Dr. Randall Williams, DHSS Director said the number of canna-businesses in the state are “consistent with what is outlined in the Constitution.”

Licenses will be awarded using blind scoring which Lyndall Fraker, director of DHSS Section for Medical Marijuana Regulation, said will ensure that businesses selected for licenses will be those most capable of providing quality service to patients while adhering to the regulations we are implementing.”

The agency has previously announced draft rules for the state’s medical cannabis law, it’s seed-to-sale tracking system, qualifying patients and caregivers, dispensaries, and DHSS is accepting comments on those rules until May 15. All rules for the program must be finalized by June 4.

Licenses for facility applications will be accepted between Aug. 3-17. The deadline to complete the blind scoring process is Dec. 31.

Missouri voters approved medical cannabis in 2016.

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Utah to License 10 Medical Cannabis Growers

4/29/2019

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Utah will license 10 cultivators to grow medical cannabis crops for the state’s medical cannabis patients, according to a KUTV report. Under the state law passed last year outdoor cultivators can grow up to 4 acres, while indoor grows are limited to 100,000 square feet.

Both the cultivation limits and the number of licenses will lead to over or undersupply, depending on who you ask.

Melissa Ure, a senior policy analyst with the state Department of Agriculture and Food, told KUTV that there would be an oversupply if all 10 cultivators were growing their max limits. Ure said the state’s 100,000 patient estimate is more than double what the department is planning.

Justin Arriola, a board member with Together for Responsible Use and Cannabis Education, believes the state’s patient counts will reach 180,000, which means that Utah’s cultivators would not be able to meet the demand. He pointed to Connecticut and New Jersey – which have similar grower caps – and said “the lesson there is…the amount of market demand is underestimated.”

Utah dispensaries are slated to open next year – many advocates are worried, however, about the state law limit of just seven retailers for the entire state.

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Hawaii Passes Industrial Hemp Bill; Gov. Expected to Sign

4/29/2019

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Hawaii lawmakers have passed a bill to make permanent the state’s industrial hemp program, the Hawaii Tribune-Herald reports. The measure was passed on the last day available for conference committees to approve bills.

State Rep. Richard Creagan, a Democrat who was on one of the conference committees that passed the bill, called it “a victory for all the small farmers” of Hawaii. Creagan indicated Gov. David Ige would sign the legislation. A similar bill failed to pass last month.

Under the current program, the Board of Agriculture sets limits on the number of industrial hemp licenses given out by the state. Creagan said the committee removed language from the bill wherein that rule would have remained in place until the full program was established – which is expected next year.

“We don’t want to just stop giving people licenses,” Creagan said in the report. “We don’t want to look like we’re trying to keep people out.”

Currently, there are just 17 industrial hemp cultivators in the state. The newly passed bill includes language to add three full-time employees to run and oversee the new industry.

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Timeline Emerges for Completion of Washington’s Traceability System

4/29/2019

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A clearer timeline for the complete implementation of Washington state’s cannabis traceability system, Leaf Data Systems (LDS), is beginning to emerge after more than a year and a half of delays and setbacks.

Meeting for the first time since January, the Washington State Liquor and Cannabis Board (LCB) Traceability Advisory Committee rescheduled the latest update, version 1.37.5 from June 14 to July 1. The update had already been rescheduled from early November to June.

According to a Cannabis Observer report, MJ Freeway has submitted eight potential release candidates but none have passed the LCB’s ten-day regression testing process. The ninth candidate will be submitted on May 7. Leaf Data Systems 1.40 — the version that will fulfill the contract MJ Freeway signed on July 11, 2017 — is scheduled for release on September 20, 2019. At that time, MJ Freeway will manage Leaf Data Systems on a monthly subscription basis at a cost of $600,000 per year. Still more updates to fix data quality bugs are scheduled for late 2019 and beyond.

Additionally, members of the advisory committee have raised concerns about the data integrity within Leaf Data Systems over the past year. The LCB is attempting to remediate this issue with a “Data Quality Project” that will assess, analyze, and resolve problems and monitor data quality within LDS.

Project manager Claire Olson said, “We don’t really know how big the breadbox is yet,” and that the LCB is attempting to gain an assessment that is, “a little more finite than ‘everything is bad.'”

“Talking to the enforcement guys has been a real eye-opening experience for me. It is the reason I stay here late at night trying to get these things sorted out.” — Olson, via The Cannabis Observer

The process to implement a new seed to sale traceability system in Washington has been plagued with problems since 2017 when long-time vendor Bio Track THC’s contract was not renewed by the LCB.

MJ Freeway won the contract to build a new state system. After missing their first deadline of October 31, 2017, however, the company has reported delays ever since. After reports of a hack and continued issues, the LCB then brought on Gardner Consulting to help identify issues holding the project up in the spring of 2018. During this period, the LCB issued several emergency license suspensions, each related to diversion and traceability issues.

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Canadian Police Report No Increase in Stoned Driving Post-Legalization

4/26/2019

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Canadian police have reported no significant changes in the number of cannabis-related impaired driving crimes post legalization, the Canadian Press reports. However, police say it is too early to release hard data on the issue.

In Ontario, police said the bulk of charges filed under the new law was for driving a vehicle with cannabis readily available; the law requires cannabis products to be out of reach of the driver usually in the trunk.

In Manitoba, that number is just 87 in six months. Royal Canadian Mounted Police Sgt. Paul Manaigre attributed those charges to people not trying to hide their cannabis products from police in their vehicles.

“We provide a reminder to treat it like alcohol and store in the trunk instead of on the front seat.” – Manaigre, in an email to the Canadian Press.

According to the casual survey of police departments throughout the nation, only in Alberta were there a significant uptick in stoned driving charges. From Oct. 17 to Apr. 10, 58 people were cited with drug-impaired driving charges, compared to 32 during the same six-month period in 2018.

Chief Const. Mike Serr of the Abbotsford, British Columbia Police Department, who co-chairs the Canadian Association of Chiefs of Police’s drug advisory committee, said that while officers do crack down on illicit cannabis producers when they come to law enforcement’s attention, they are prioritizing investigations into deadly drugs like fentanyl and methamphetamine.

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Survey: 51% of Americans Consider Cannabis Smell a “Problem”

4/26/2019

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According to a PSB Research, Civilized, Burson Cohn & Wolfe, and BuzzFeed News survey, 51 percent of Americans believe the odor of cannabis in public is a “problem,” compared to 60 percent of Canadians.

The survey did find a supermajority of Americans – 84 percent – favored legalization for either medial or recreational purposes and 60 percent said they supported a taxed and regulated cannabis industry. Of the American respondents, 27 percent were active cannabis consumers.

In Canada, 57 percent of respondents said they “dislike” or “hate” the smell of cannabis in public, compared with 23 percent of Americans. Sixty percent of Canadians called the smell of cannabis in public “a real problem.”

Among Americans, 18 percent said they enjoyed the smell and another 18 percent said they didn’t like it – 41 percent said they didn’t notice or didn’t care.

One-third of current American consumers said that the smell of cannabis in public was a problem, but just 10 percent said it was a major one. Among American non-consumers, 27 percent called it a major problem while 29 percent said it was a minor problem; 28 percent said the smell was “not really a problem” when walking down the street, while 21 percent said it wasn’t “a problem at all.”

1,000 adults aged 21-or-older were interviewed for the survey in the U.S. – 471 consumed cannabis regularly. In Canada, 602 people were surveyed, including 371 consumers.

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Hemp Legalization Bill Passed in Iowa, Moves to Gov.

4/26/2019

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The Iowa Legislature has passed a measure legalizing industrial hemp production in the state, KHQA reports. The legislation passed the House 95-3 on Tuesday and 49-1 on Thursday. It moves next to Republican Gov. Kim Reynolds who, according to Brownfield Ag News, is expected to sign the bill.

Under the law, farmers will be permitted to grow up to 40 acres of the crop which will be monitored by the Iowa Department of Agriculture and Land Stewardship.

State Rep. Jarad Klein, himself a farmer, called the bill’s success “a win” for customers, retailers, and farmers.

“Allow the building of the infrastructure of this market now, so that when it comes time for our farmers to harvest their crops, there will be a robust demand and an outlook for industrial hemp.” – Klein in an interview with KHQA

While farming won’t begin until next year, the bill immediately allows retailers in the state to begin selling hemp-based products, according to a Radio Iowa report. Republican Rep. Jeff Shipley, who voted for the measure, expressed some frustration about the “red tape” contained in the bi-partisan legislation.

“Technically we are growing government with licenses and fees and it’s hard for me to comprehend that because my understanding of hemp is basically it is an inert plant and it’s very hard for me to wrap my mind around why we need government holding people by the hand to make sure they don’t make any mistakes here,” he told Radio Iowa.

Once the bill is signed by Reynolds, only eight states will remain without legalized hemp production following the passage of last year’s federal farm bill which removed hemp from the Controlled Substances Act. Last week the U.S. Department of Agriculture released hemp seed import guidance to clarify how farmers could access seeds for the new crop.

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Kamala Harris: Ex-Dealers Should Be “First In Line” for Cannabis Opportunities

4/25/2019

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California Sen. Kamala Harris, who is also a candidate for the 2020 Democratic presidential primaries, said on Wednesday that incarcerated cannabis dealers should be freed and deserve access to the burgeoning cannabis industry’s new economic opportunities.

Sen. Harris made the comments during an appearance at the She The People conference in Houston, Texas.

“[Many] of the people who historically were arrested for marijuana sales were young men, young men of color. Isn’t that the irony of it all? This is one of the fastest-growing money-making industries in our country and the very young men who were trying to make money doing the same thing got criminalized and now have been branded felons for life [and] are excluded from the economic opportunities that are now available because of this new industry.” — Sen. Kamala Harris (D), during her She The People appearance

“They were ahead of the curve,” she said, and they should be “first in line to get the jobs that are available.”

Sen. Harris also reiterated her stance regarding federal cannabis legalization, stating that she “strongly” believes that prohibition is a failed policy that should be abolished. “It has … contributed to the problem of mass incarceration in our country, and has led disproportionately to the criminalization of young black and brown men in this country,” she said.

The California senator also described drug prohibition broadly as a failure. “There is no question of the failure,” she said, reiterating previous arguments she has made that the Drug War has mistakenly turned what should have been a public health issue into a criminal justice issue.

Historically, however, Sen. Harris has not always been in favor of progressive cannabis reforms. She did not publicly endorse California’s successful cannabis legalization initiative, for example, and did not endorse any federal cannabis reforms until 2018.

According to Marijuana Moment, the now-senator at one point bragged that, during her tenure as California’s Attorney General, she “increased convictions of drug dealers from 56% in 2003 to 74% in 2006.”

Sen. Harris also has a somewhat troubling habit of referring to the ongoing Drug War in the past tense — as if there weren’t still millions of drug-related felony convictions (including for cannabis) carried out each year in the U.S.

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USDA Releases Hemp Seed Import Guidance

4/25/2019

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The United States Department of Agriculture has released guidance allowing hemp seeds to be imported from outside of the U.S. as long as the seeds include documentation that the strains will produce plants below the 0.3 percent THC threshold.

Seeds must include phytosanitary certificates from government plant protection agencies that confirm their origin and that no plant pests are detected. The agency notes that, while the Drug Enforcement Agency no longer has the authority to require hemp seed permits for import purposes, the shipments would be subject to inspection at ports of entry by Customs and Border Patrol.

“The [USDA] regulates the importation of all seeds for planting to ensure safe agricultural trade. Under this authority, USDA is providing an alternative way for the safe importation of hemp seeds into the United States.” — April 18 USDA “Importation of Hemp Seeds” guidance.

The guidance is the first action by the USDA related to hemp, which was removed from the Controlled Substances Act last December as part of the 2018 farm bill. The measure requires states to submit their hemp industry plans to the USDA for review before they can be implemented. The agency is responsible for developing federal rules but those rules are not expected until later this year.

Since the bill’s passage, several states have moved on, or approved, legislation to either align their state hemp cultivation rules with those outlined in the federal legislation or legalize hemp production. Currently, just seven states still have laws in place outlawing hemp production.

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Washington State Resumes Heavy Metal Testing

4/25/2019

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The Washington State Liquor and Cannabis Board (LCB) has announced the resumption of heavy metal testing under the Department of Health (DOH) cannabis resume. The announcement comes nearly three months after the LCB passed an emergency rule suspending the heavy metal testing requirement due to a lack of state certified heavy metal testing labs.

During those three months, producers committed to producing DOH-compliant products — which must be tested for heavy metals and banned pesticides and serve as the state’s “medical cannabis” supply — could still use the DOH compliant logo. Until recently, however, producers had to include the message “Not Tested for Heavy Metals.”

Starting April 18, Medicine Creek Analytics, a Puyallup Tribe cannabis business, became the sole cannabis testing lab in the state for heavy metals.

Medical cannabis patients are especially susceptible to elevated heavy metal concentrations because of their already compromised health. The primary heavy metals tested for in the cannabis industry are lead, cadmium, arsenic and mercury. These may accumulate through grow mediums, fertilizers, pesticides, packaging materials, and may even be transferred by some cannabis clones, according to the Cannabis Industry Journal. The Journal recommends testing everything cannabis comes in contact with, citing a recent case of lead leaching from plastic vape cartridges into otherwise clean concentrates.

Washington is in the midst of updating their testing protocols, passing a bill requiring pesticide tests for all cannabis sold in the state in the 2019 session. Unlike other states like California, who require heavy metal testing for all cannabis, Washington only requires heavy metal testing for Department of Health-approved products.

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Cannabis Beverage Producers Alliance Call for Changes to Canadian Edible Rules

4/25/2019

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A coalition of Canadian cannabis and alcohol companies are pushing for changes to the nation’s proposed rules for cannabis-infused beverages, the CBC reports. The Cannabis Beverage Producers Alliance is seeking the ability to produce cannabis-based beverages in facilities that also produce alcoholic beverages.

The group argues that developing stand-alone cannabis beverage making facilities would take money away from implementing technology and recruiting talent. Paddy Finnegan, business unit manager for food and beverage at Lakeside Process Controls and an alliance member, said the additional cost of establishing separate facilities is a “significant barrier to entry.”

“Those producers that are able to enter the market, at all, are not going to be able to do so at a price point that is appetizing to the consumer.” – Finnegan, during a press conference, via Bloomberg

The draft regulations for edibles say that cannabis beverages cannot have similarities between their alcoholic counterparts and the group says that rules could prevent companies from putting canna-beverages in bottles normally used for wine, according to a Just-Drinks report. The rules also ban companies from using terms like “beer” and “wine” and existing alcohol brands would not be permitted to use any name associated with their alcohol products. Terry Donnelly, chief executive of Hill Street Beverage Company, told Bloomberg those regulations could be “very confusing for the Canadian consumer.”

Health Canada released the edible draft rules in December. Health Canada must approve the final rules by Oct. 17.

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Alabama Committee Approves Medical Cannabis Bill

4/25/2019

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Alabama’s Senate Judiciary Committee voted 6-2 on Wednesday to approve a medical cannabis bill, moving the measure to the full Senate, WSFA-12 reports. Three committee members abstained on approving what would be a state constitutional amendment.

Currently, the state does permit the University of Alabama at Birmingham to research the use of CBD products under what is known as Carly’s Law; the proposed CARE Act would extend that law until 2021.

The measure would also establish the Alabama Medical Cannabis Commission, which would set up a patient registry and issue patient identification cards and operator licenses. The bill sets patient application fees at $65 with $65 annual renewal fees but does not lay out the fees for would-be cultivators, processors, transporters, manufacturers, packagers, or dispensaries. It also does not layout taxes for the industry.

Although it would be a constitutional amendment it does not require the two-thirds vote to enact the measure; it would, however, require a supermajority to change or overturn.

The bill includes 33 qualifying conditions, including addiction, autism, chronic pain, depression, Tourette’s, and several others included in medical programs throughout the U.S.

The bill must still pass both chambers and be approved by the governor.

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Texas House Approves Hemp Bill; Moves to Senate

4/24/2019

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The Texas House has approved legislation to legalize industrial hemp production and it next moves to the Senate, the Texas Tribune reports. The vote was conducted via a voice vote and none of the members were opposed.

The broad legalization bill includes CBD, as long as the products don’t surpass the 0.3 percent THC threshold. Democratic Rep. Tracy King, the bill sponsor, called the measure “right-to-farm legislation” allowing the state’s farmers “to cultivate a drought-resistant cash crop.”

Jeff Lake, owner of Kentucky-based company Elemental Processing, told Texas lawmakers he pays $3,000 to $5,000 plus a bonus per acre of hemp, compared to $300 to $400 for an acre of corn in a good year.

Texas Agriculture Commissioner Sid Miller threw his support behind the legislation.

“Allowing the Texas Department of Agriculture to create an industrial hemp program here in Texas will give Texas farmers an exciting new opportunity to thrive — and that’s something everyone should get behind. It is all about Texas farmers and ranchers and seeing them prosper.” – Miller, to the Tribune

The measure completely removes hemp from the state’s controlled substances list. Texas is just one of seven states without some form of hemp production legalization. Several other states, including Florida, Nebraska, Iowa, Idaho, and Oklahoma have moved to reform their hemp laws following last year’s broad legalization in the federal Farm Bill.

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West Virginia Gov. Reconsidering MMJ Industry Reform Bill

4/24/2019

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West Virginia Gov. Jim Justice is considering a bill to eliminate taxes on medical cannabis growers, processors, and dispensers, instead opting to only levy a 10 percent tax at the point-of-sale, according to a WOWK report. The proposal also allows vertical integration in the space and advocates fear the changes in the bill will delay the roll-out of the program by another year or two.

The medical cannabis legislation is one of 14 the Republican governor vetoed over so-called technical problems. The bills are forcing the legislature to convene a special session next month.

The original medical cannabis law signed by Justice in 2017 taxed both growers and processors with a 10 percent tax and another 5 percent for dispensaries. It also barred companies from owning a cultivation, processing, and dispensing company in the space – known as vertical integration. Justice vetoed a bill in March which would have allowed vertical integration but included taxes at all levels of the supply chain – meaning one vertically integrated company would pay three different taxes.

“While the Legislature has authority to classify different businesses and tax them differently, the classifications must be 1. reasonable, 2. based on pertinent and real differences, and 3. have as their object a purpose that is germane to the enabling legislation.” – Justice, in his veto message, via the Register-Herald.

Michael Haid, a medical cannabis lobbyist, told WOWK that “stand-alone dispensaries won’t have a chance” in the state without vertical integration and officials want to make sure there is enough money to self-sustain the program.

Sales were expected to begin July 1, but the state has yet to issue any licenses. The bill vetoed by Justice last month included provisions for regional distribution which would have helped move the program along. Officials hope a recently-passed law setting up a bank for the industry will help get medical cannabis businesses licensed.

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