Federal Cannabis Lobby Spending Set to Outpace 2018 Totals

Cannabis industry lobbying spending in Washington, D.C. is on pace to break the record levels set last year, according to a Marketwatch report. In 2018, the industry spent $2.7 million on lobbying efforts at the Capitol, while so far this year, cannabusinesses have already spent $1.6 million.

The total through June already outpaced all of the lobbying spending by the cannabis industry in 2017, which tripled from 2016 figures outlined in the report.

Mark De Souza, CEO of Illinois-based Revolution Enterprises, told Marketwatch that the lobbying efforts are not only to convince lawmakers to pass cannabis law reform bills in Congress, but that the industry is competing against other industries it might have conflicts with – such as alcohol, tobacco, and pharma.

“So I could see the justification for the industry as it’s growing to start to want to have a voice and seat at the table. Anytime an industry comes in and is disruptive on any level, there’s always going to be some friction.” – De Souza, to Marketwatch

Curaleaf Holdings. Inc., and Surterra Holdings Inc. both led the industry’s lobbying spending in quarter two, with $200,000 and $120,000, respectively, the report says.

Earlier this month, Curaleaf announced it had agreed to acquire GR Companies Inc. – or Grassroots – for $875 million in cash and stock. Once approved, the combined company is set to become the largest cannabis firm in the world.

The Cannabis Trade Federation spent $190,000, and CEO Ned Levine told Marketwatch that the STATES Act – which would prevent the federal government from interfering with state-approved cannabis policy – is the organization’s “top priority.” Levine notes that the Sen. Elizabeth Warren-sponsored bill “now has 60 co-sponsors in the House, including 15 members of the Judiciary Committee.”

“We are pleased to sere significant momentum building behind the push for cannabis policy reform at the federal level,” he said in a statement to Marketwatch.

De Souza suggests that another industry normalization bill – the SAFE Banking Act – could get a vote next year. He suggested that the bill is buoyed by the fact it was granted a hearing by the Senate Committee on Banking, Housing and Urban Affairs.

If the record spending continues, the industry is expected to devote more than $3 million on lobbying by the end of the year.

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aurora cbd study

UFC Officials Describe Details of Aurora CBD Study

Mixed martial arts league Ultimate Fighting Championship has announced the details of their partnership with Aurora Cannabis for clinical trials to study the efficacy of CBD on wound care, recovery, injury, pain, and inflammation, CNN reports.

Dr. Jeff Chen, director of UCLA’s Cannabis Research Initiative, who is not involved with the project, told CNN that the study is right out of the “pharma textbook” – meaning a company designs a study and supplies both the research product and funding.

Jason Dyck, Ph.D., the chairman of Aurora’s Global Scientific Oversight Committee who joined the company’s board in 2015, will lead the study along with Aurora’s Vice President of Global Research and Medical Affairs Kelly Narine, Ph.D, and a team of researchers from the UFC Performance Institute in Las Vegas, Nevada.

Dr. Duncan French, UFC vice president of performance, said the collaboration with Aurora “is the best way to educate ourselves and our fighters about the impact of CBD on MMA athletes and our sport.”

“We want to apply science and see where it leads us. Ideally, these studies will give us the clarity we need to determine the effectiveness of hemp-derived CBD on athlete health and injury recovery.” — French, in a statement, via CNN

In 2016, UFC fighter Nate Diaz came under fire for his use of a CBD vape pen during a post-fight press conference, which led to an investigation by the World Anti-Doping Agency. During the presser, Diaz said CBD “helps with the healing process and inflammation” and that he used it during training, and before and after fights to “make [his] life a better place.”

Last month, the UFC announced heavyweight Alexey Oleynik signed a deal to represent ETFMG Alternative Harvest ETF, a cannabis-focused, publicly-traded exchange fund, during fights.

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Juneau, Alaska Approves Cannabis Social-Use Ordinance

The Juneau, Alaska Assembly has approved an ordinance allowing on-site cannabis consumption at state-approved cannabis businesses, the Associated Press reports. The measure allows both on-site edibles consumption indoors and smoking outdoors.

According to a Juneau Empire report, on-site edible consumption at businesses will be permitted 30 days following the ordinance’s passage on July 23, while public smoking won’t be allowed until more regulations are developed.

Jennifer Canfield, co-owner of cannabis dispensary Green Elephant, told the Empire she doesn’t believe smoking will be allowed this year.

During the debate, officials argued that the smoking ordinance was an attempt at combatting secondhand cannabis smoke and incidents of people smoking cannabis in public illegally.

Alaska legalized social cannabis use last March, allowing businesses to apply for on-site endorsements; however, like most state-wide cannabis laws, municipalities have final say in whether they will allow the industry to operate and can devise their own laws.

Under the state law consumption areas must be separated from retail areas by a wall or secure door or be an outdoor patio. Ventilation must be provided, and a security plan must be filed with the state.

Alaska was the first state to approve social-use cannabis laws. In February, Denver, Colorado finalized its social consumption regulations, which were approved by voters in 2016. Earlier this month, West Hollywood, California approved its first cannabis café. Under Michigan’s emergency adult-use regulations, social use will be permitted at clubs and lounges that do not serve food or alcohol, and event and festival organizers will be able to apply for permits that allow for cannabis use at the event.

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Study Shows Cannabis Users May Discipline Children More Often

A study recently published in the Journal of Social Work Practice in the Addictions titled “Types of Substance Use and Punitive Parenting: A Preliminary Exploration” has uncovered troubling results when it comes to parental cannabis use and child discipline.

The researchers looked at data collected in 2009 from 3,023 randomly selected parents of children 12 years old or younger, in fifty cities throughout California. The survey covered nonviolent discipline techniques such as timeouts, loss of privileges and redirecting behavior, violent discipline like corporal punishment, and even physical abuse.

According to the study, parents who used alcohol, “marijuana,” methamphetamines, and other illicit drugs showed an increase in nonviolent and violent discipline behaviors. Surprisingly, parents who reported using cannabis within the last year had the greatest frequency of physical abuse behaviors. Additionally, pairing alcohol with all three drug types increased the frequency of both non-violent and violent discipline behaviors, with comorbid alcohol and cannabis use significantly increasing the frequency of physical abuse.

What many media groups have failed to mention in their reporting on this topic, however, is that parents who reported lifetime cannabis use showed similar physical abuse rates as non-drug users and non-drinkers.

“…[F]indings indicated lifetime marijuana use was associated with a lower frequency of physical abuse while past-year marijuana use was associated with a higher frequency of physical abuse,” the study authors wrote.

“When evaluated in relation to comorbid alcohol use, we observe that the highest average frequencies were attributed to categories for past-year drinker, past-year marijuana user, whereas the lowest average frequencies were attributed to both non-drinker, no drug use and lifetime marijuana users. Over 92% of past-year marijuana users also reported comorbid past-year alcohol use, which may be driving high physical abuse frequencies observed for past-year marijuana use.” — Excerpt from the study

Lastly, the study found that as the number of substances used together increased, rates of discipline likewise increased across all drug types. 

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Travis Howard: The Business of Normalizing Cannabis

Travis Howard is the founder and Chief Strategy Officer for Shift, a Colorado-based cannabis producer and product manufacturer.

Travis recently joined our podcast host TG Branfalt for a conversation about his experience as an attorney in the early days of Colorado’s cannabis market, his transition to entrepreneurship, and the journey of founding several cannabis companies. In this interview, Travis offers a candid look at the current state of cannabis, talks about the difference between the industry’s earliest entrepreneurs and the major corporate investments that are becoming more common, what he expects from the cannabis movement in the coming years, and more!

Tune in via the media player below, or scroll down to read a full transcript of this week’s Ganjapreneur.com podcast episode.


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Commercial: This episode of the Ganjapreneur Podcast is made possible by 420-friendly service providers in the Ganjapreneur business directory. If you need professional help with your business, from accounting to legal services to consulting, marketing, payment processing, or insurance, visit ganjapreneur.com/businesses to find service providers who specialize in helping cannabis entrepreneurs like you. Visit the Ganjapreneur business directory today at ganjapreneur.com/businesses.

TG Branfalt: Hey there. I’m your host, TG Branfalt, and thank you for listening to the Ganjapreneur.com Podcast where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today I’m joined by Travis Howard. He’s the founder of Shift, who also is an attorney, helped the first wave of cannabis companies in Colorado.

He founded Kind Reviews, now PotGuide, and Green Dream Cannabis in Boulder in 2009 and 2010, respectively. In addition to his consulting business, he took part in various ancillary startups, including patient education, staffing, physician services, and wholesale exchanges. A ton of hats in this space. How are you doing this afternoon, Travis?

Travis Howard: I’m doing well, Tim. Thanks for having me. Appreciate you.

TG Branfalt: Really, really delighted to have you on. You’ve a huge breadth of experience. But before we get into the details about what you’re doing now, tell me about yourself. How’d you end up in the cannabis space?

Travis Howard: Well, I like to say we learned our macro-economics and I’ve been a demand side cannabis guy for most of my life. In 2009, dispensaries started opening up and I was interested in getting in there. I’ve had neck and shoulder issues from various car accidents and football, and the rest of it, talked to a doctor, qualified as a patient, and started meeting some of these folks and wanted to help spread the word. Also, there were some that weren’t very reputable or good. That all led into Kind Reviews that I founded with my brother. One thing led to another. I saw what was happening and I wanted to participate and found some ways in and some folks to work with on all the various items that you had listed previously.

TG Branfalt: When you went to law school, was that your focus? Did you say, “Hey, I want to focus on cannabis, or the cannabis industry,” as it ended up?

Travis Howard: No, not at all. The cannabis industry, to me, it’s just another outcry of all entrepreneurial pursuits. I went to law school specifically to become a better entrepreneur and to become a business attorney that could help other people entrepreneur. I love cannabis, and I love the industry. I think there’s a lot of stuff that we still have to do, from getting people out of jail, to full normalization. But underneath that, I really am passionate about entrepreneurialism, and how if we create more entrepreneurs, we’re unplugging people from the corporate system. They’re no longer batteries, they’re their own machines. They’re making good decisions for their employees, for their communities, because they need those people to support their business.

I just think the more entrepreneurs we have, the better community stewards we have, the better communities we have for our kids to grow up in. I think it’s a more healthy economy, if people diversify their portfolios. I don’t think we should be running the size of our economy off of just Fortune 500s, and we’ve seen that move up in the scale. That was my drive in the middle 2000s. The early 2000s when I went into law school was, I wanted to empower myself and others through entrepreneurialism. That just bled into cannabis because when I was practicing law, I got out of law school, and I went and helped my wife and her parents’ company. I was working with special needs speech therapy, and they were going through some transitions. I went down there and did some director of operations internationally, and ended up co-CEOing on the business there.

When I came out of that and moved back to Colorado, I hung my shingle to do the business law and the people that were calling remember all the businesses were crashing, there weren’t a lot of people starting new stuff. This is 2008, 2009 and early 2009 to mid 2009, I started getting a lot of calls into my law office for people that wanted to come from the underground and black market into the, at that time, technically gray market, although it really was white under the Colorado constitution.

But they were looking for leases, partnership deals, operating agreements, and everything that you would want in a normal business. But most of the big business law firms weren’t touching that platform. The early activists attorneys that laid the groundwork for us … At that time, there was the Rob Cory’s in the war and Edsons, and many more that … My apologies to them for stating their names, but they … All those guys that were out there fighting for so many people, they were predominantly criminal lawyers, constitutional lawyers, lawyers that we needed in the space, but there weren’t a ton of business attorneys that were willing to step up.

Vicente Sederberg at this point is one of the more famous law firms. Christian Sederberg went to law school with me. He was a year before me, and he had been focused on business. There was just a couple of us at the time, and I started meeting all these folks that were frankly getting rooked. The irony here, Tim, is that at that time period, you had a lot of business people that were willing to take risks. The ones that I saw, were predominantly from the real estate, either brokers, developers, owners, that … You remember that the economy was tanking, so auto was down at the time, and real estate and development was down at the time, generally in the economy.

You had a lot of people, that had previously been in the real estate world, that were now looking to join forces or move their real estate property or some of the cash that they had saved that they were going to put into a development into cannabis. Well, these folks coming into the cannabis were still called black market or illicit. The people that the business community had been looking down their nose at.

But what I actually saw in 2009 and early 2010, was a whole lot of real estate sharks preying on good natured mom and pop people that wanted to come in, and that is where I actually stepped in for some of my clients. I don’t want to overstate what I did. I was just one small cog in the wheel. But for my clients, we worked on a lot of bringing them up to equal representation and an acumen for these new partnerships that they were forming.

TG Branfalt: You’re saying you hung your shingle, which is one of my favorite turns of phrases. How did people find out about Jimmy? Was it word of mouth? Was this something that you actively advertised and gave out your card to a cannabis business owners?

Travis Howard: I did. It was interesting because, at the same time I was doing that, my little brother had called me and said, “Listen.” He’s like, “I bought these domain names, I had Colorado marijuana reviews, and I have Kind Reviews.” He goes, “I was out in California visiting a friend, and somebody mentioned this website where you could check out if the weed was good.” I was like, “Wait, what?” I’d come out of tech earlier, and during law school I’d started a company called Dealers Link with a couple of my friends that was a software exchange in the auto industry.

Tim called me, and he said, “I know you on tech, can you help me do something here?” I looked it up, and I was like, “That would be awesome.” I’d already got my patient card, let’s go and review these things, start this as a business. As I was going in and meeting dispensary owners, and asking them, buying samples and telling them that I was going to review this stuff online, sometimes I did it blind, sometimes I let them know so that they could give me any background information. I always gave an honest review.

But that’s when they’re like, “Well, who are you? Why are you doing this?” “Well, I’m a business attorney here in the area, but I’m passionate about cannabis and this is something that I’m doing in my spare time.” Well, three, four times being in there, all of a sudden those individuals were calling me back, being like, “Hey, I know you mentioned you were an attorney, would you be willing to work with me? I can’t get anyone else to take the business.” Then word of mouth spread. This was a close knit community. This is back when dispensaries were open under zoning laws. You had a business license, or a sales tax license, and that was it.

The state of Colorado hadn’t written their regulations yet, and growers were growing in their basement with patient cards, and that was what we call the backpacker days, where they were packing in. They’d show up with their backpack with five pounds a weed, and go down Broadway, where we were calling Broadsterdam or The Green Mile at the time. “Hey, do you want to buy any of my wares?” It was traditional guerrilla marketing at the time. The word spread through those individuals that I was open for business and willing to do work.

Truthfully at that time, I probably could’ve served a lot more clients, but it was hard with conflict of interest because everybody knew each other, everybody was working together. We just needed more attorneys to come in, and luckily a lot of brave souls did come in, because back then the Bar Association had issued no information on whether they wanted you doing this, not doing this, whether you could be a patient, use cannabis of course. All that stuff, at this point, has been settled with the Supreme Court and the Essex rules and all that stuff.

But, I remember a time talking to my wife and rereading that oath of office I took when I became an attorney, and I was reading it and I was like, “I don’t know if I’m supposed to be doing this, but this oath tells me that where there is the need, it is our duty and responsibility.” I looked at my wife, Beth, and I said, “I can’t imagine, aside from a criminal death row case or life imprisonment which could result out of some of this trafficking, where an attorney would be needed more.”

There’s a conflict between state law and federal law. They don’t know what’s going on. I was like, “I think we have to do this.” I just followed my heart and my gut on that, and that oath that I took. Then luckily, the Bar Association eventually saw it the same way, and said, “Yeah, we do need attorneys in this industry. This is something that’s going to be important.”

TG Branfalt: Can you describe to me the learning curve in those early days when regulations are being released? Right? You were just having to learn on the fly. Can you just tell me how you managed that?

Travis Howard: Oh my goodness. I had three desks in my office with every piece of paper that came out of the Marijuana Enforcement Division, and that 2010 run up to that … In August 2010, is when everybody met down at the dog track, as we all called it. It was an old … the racing track where they had put their first offices and everyone got in line to submit their first applications. But the rules were coming out. You were reading the Senate bill, you were reading the House bill, HB1284. I’ll never forget those, that letter and number combination.

I lived and breathed it. But on top of that, you had all these local districts. I think what most of the attorneys did was focus on Denver and some on Boulder, because Boulder had its regulations, its first version, before the State had regulations, which caused a whole another slew of stuff in Boulder that we later had to clean up as a community. But it was difficult. We were highlighting stuff every day, you were checking the website to see if any new clarifications … I remember I had Dan Hartman at the time, Mr. Seckman, there were numerous people, the MED, that I had their cell phone in my cell phone on speed dial, and I was calling and asking questions.

Back then, they picked it up directly and answered questions for the attorneys because they knew if they gave the attorney the information, that it was better than taking … that I could talk to my 40 clients versus having all 40 call them directly. It was just a lot of working together. I know that over the years, some of the industries felt like the MEDs worked against them, some, for them, the rest of it.

But in those early days when none of us really knew exactly what was going on, I will say on the defense of the Department of Revenue, they were very open and willing to talk to us and walk through that stuff, because it was a series of landmines. A lot of people lost their businesses because of some false step that they thought that the rule said this and didn’t mean that, and this person was eligible but not. It was interesting at the time. That’s for sure. No dull moments.

TG Branfalt: Tell me about what you’re doing now about … with Shift.

Travis Howard: Shift, at this point, is a tried-and-true cannabis brand. I’ve run the gamut from doing consulting to business operation contracting. We’ve done staffing and such. But I think the industry … About a year ago, I set out to help normalize the plant. I felt like that happened, to some degree, with a lot of people. Other states coming down, I wanted to normalize the business and the respect for the industry, which is why I quit practicing and went ahead and grabbed the license so that the peer group couldn’t say, “Well, you’re just doing it as an attorney to make money. You don’t really believe in this.” They couldn’t say that. They had to look me dead in the eye and be like, “Wow. You really do believe that this is okay because now you’re an owner and you’re doing it.”

We went through all those processes about a year ago. I was like, “Look, there’s a ton of activists out there that are doing a great job. There are a lot of people that … from Steve DeAngelos and the rest of them, to the mom and pops that are in Colorado and the states around us.” Now there is this massive wave of, the last year or two years of the Canadian public companies, Wall Street, big money funds, all the rest of this stuff. Now that we’ve got both of those book ends, what do I believe in the most? What was I passionate about at the beginning, that I think that the industry still wants? That’s on the consumer side.

That’s when I really decided to push Shift with the tagline Genuine Cannabis into a CPG, a consumer good branded products that … I’ve got the same heart and the passion that any mom and pop that has been here. I mean I’ve been smoking weed since the early ’90s, I’ve been through the black market, the gray market, and now the white market. I’ve had my bank account shut down personally. You can’t get a 401(k), I can’t be do 529s because all the broker dealers can’t take me because my social security is on the black list, and all these other things.

On the flip side, being a business attorney and having worked at some bigger companies and seen the business side, I know that there’s the combination that really is going to prove valuable for customers in the long term, and that is all the heart and the love of a brand that you can trust for products that you trusted before this stuff was even in white market. For supply side, a stable business that runs like a machine, but with a heart. You can go and get a little bit of great cannabis from a bunch of different people, but can they supply your business all day, every day and take care of you, of what you need to grow your business?

On the flip side, we’ve got a bunch of these big businesses that are just throwing money and machines over the top of it, that don’t have the heart, the passion and the soul that consumers want. For me, that is genuine cannabis, that is Shift. That’s what I’m setting out to bring to the world, and we’re doing that right now in about 40 to 50 dispensaries in Colorado and we’ve got three dispensaries open in New Mexico. It’s not longterm.

We’re probably not a dispensary brand, even though we have those licenses down there. We’re really looking to be a brand that other retailers can count on, and probably if they own a dispensary, they’re passionate about the products and the use, and they want to know that they’re going to get something from people that care as much as them. That’s the promise I’m making to retailers and the customers both.

TG Branfalt: You mentioned that you’re also in New Mexico, and now that you’ve experienced these different markets, and in various formats, California, Colorado and New Mexico, Maryland, and handful more via application and regulation work, can you tell me about some of the key differences that the average consumer or the average citizen might not understand about how … the differences between the states?

Travis Howard: Yeah. I think the main difference is the constituent that the program is supposed to support and take care of. When you look at New Mexico, and certainly no offense to their Department of Health, they’ve busted their button, tried very hard to produce good results. It’s difficult as a business down there because it’s clear the program is set up for patients. Everything was set up for the medical side, for the medical patient, for their needs. That’s where the program stemmed from, and that’s the foundational work.

When you flash forward to some of the other states that we’ve worked in, especially East Coast and Midwest states, it is clear who the programs are built for regardless of anything they’re touting about the patients. This is the Department of Revenue. That is the constituent, that is who they are working for. It’s about generating tax revenue, it is about generating profits in the corporations, it’s about ensuring that the people that come in to start those businesses, that get awarded the licenses, have the deep capital pockets that acumen in the connections potentially to Wall Street. It really is for the business community.

Now, that’s not to take away and say. In some of those states, that program also dovetails and works really well for the patients or for the recreational consumers. But in some programs, you’d get online and Google unhappy medical patients, and you’ll find the states that the programs aren’t really working for the patients but are working really well for certain businesses. I think probably one of the shining examples of that is Florida, where you have a handful of people that have those early licenses.

Most of those licenses have flipped for 40, 50, $100 million to public companies, and there’s patients all over the state that don’t have, and for the longest time didn’t have, access to enough product because a lot of those licenses hadn’t even opened up and started producing, or opening up dispensaries across the board, when clearly there were a lot of other businesses that were willing and ready to open if they could get licenses, but no more were issued. It’s easy to throw stones in the industry. Everybody’s got somebody that they’re mad at, a scape goat, and I try not to do that. It’s nothing little less than I teach my kids, like, “Try to look at the other side, try to put yourself in their shoes.”

But I haven’t been a patient myself for many years. Thankfully, I’ve worked through some of my issues, but … I don’t know. It’s tough. But I think that’s the major discrepancy between states, is this about the patients or is this about the business community, a.k.a, the Department of Revenue, who’s collecting revenue. But at the same time, Tim, we all have to be honest even as activists and people who care about this. This country normalizes things through profits.

I knew it back in 2010, that it wasn’t going to be Shangri-La, it wasn’t going to be this perfect Kumbaya moment, that if we wanted to actually get what we really wanted, which was the world treating this as a plant, like anything else, and putting it out there, that we were going to have to step into the language that the world, that this western society normalizes things through, and that’s profitability. If the thing couldn’t produce profits, if it couldn’t produce results for Wall Street, that we weren’t going to get actual normalization.

It was sad, but I felt like it was true then, and I feel like it’s true now. That doesn’t mean that I love it, it doesn’t mean that I wanted it to go this way, but I was never confused about how I thought it was actually going to work out. If we were going to have 50 states with legal cannabis, I didn’t think it was going to be, well, grow it at home and just let it be. I just never thought that that was how it was going to make it to all 50 states, unfortunately.

TG Branfalt: It’s an honest and astute observation, man. Just today, the AP, the Associated Press, released this of investigation, noting that when recreational comes to medical states, that the medical programs just plummet the patient health plan — I mean, isn’t that to be expected, and what are the … what’s going to happen? What’s the negative … What negative things are going to happen as that progresses?

Travis Howard: I’m certainly not clairvoyant, but I think there’s a couple things that I’ve witnessed and what I feel like is going to continue to transpire. Certainly, we know that of the original patient populations, you’ve got really what I call the OTC market, which is people that … they are treating themselves, but they’re treating themselves for items that are probably less, on a grading scale, than what the program really thought of when they made the patient program.

Then you’ve got the patients that were clearly identified with the inception of the program, and then you’ve got more recreational users that have been able to talk to their doctors and the doctors are like, “You know what? I feel like this is a fairly benign substance. If this guy’s telling me that it helps him, I’m fine with it.” You’ve got these three groups. When recreational does show up in an area, of course that first group is probably going to be like, “Well, I don’t want to go through the rigmarole of going to the doctor if I don’t have to.” The OTC market might stay as a patient, they might not, because the recreational team is able to move forward.

But what I think, I’ve seen a lot, is that when the recreational comes in, the State obviously … It doesn’t look good to have a high tax and penalty on medical patients. You bring in children with afflictions, you bring in adults with cancer, these sorts of things, and you set them on the stand and then you put them on the news and the State is trying to tax them. That just doesn’t look right, right? It’s a bad look for politicians, they’re not going to push it. They’re going to push where they’re making their money on licenses, tax, excise, the rest of it over to the recreational world.

Well, these are communities that run on taxes, so they’re going to be incentivized to either make those licenses easier to get, the regulations easier to work with, the investors and access to capital is going to be easier, so on and so forth. If you’re a business investor and you’re coming in off the sidelines, and this wasn’t your passion project, but you wanted to see where things are going, you’re looking out there and you’re going, “Well, recreational is moving forward. I believe that’s going to look like alcohol on some level in the future. I know profits come out of there. What if the medical ends up going to the pharmaceutical companies longterm?”

Well, if you’re an investor with $1 million or $100 million, which pool are you going to put that investment in? I don’t want to fight Big Pharma, but I could be myself a new big alcohol. The capital comes into the recreational side. The advertising, the branding, the product development, and that’s not to say there’s not some really great companies out there developing on the medical side. But if you look overall on where that cash is coming in and where the people, the new workforce, is coming out of alcohol, tobacco, wine, food, and all these other things that are going on CPG side, that are coming in to do the marketing and the product development, they’re going to be in the recreational space as well, because this is where they get to build a brand.

You see all of those things. I do envision that long term, you’re going to see more investment and product offering, which is only going to encourage more OTC patients to not go get their medical license because they can get the same products or better products. Looking at Colorado as an example, well, the medical still was forcing you to be vertically integrated and doing the 70-30 rule and all of this stuff. Whereas when you’re on recreational, people that were good at retailing got to do all their retail stuff, people that were good at growing, you had the lab start to process, and you saw this division of people specializing.

Well, you go into a lot of dispensaries that had a medical side and a recreational side, and there were more products offered on the recreational side because they could buy from any of the vendors that they wanted. I see that pattern occurring across the country and I don’t think that that pattern is going to necessarily stop. I don’t know. I have a lot of hope for the people that started out in the medical world, that were willing to put their freedom on the line and come out and be that first wave of people that put their fingerprints and submitted their powers of attorney to the State of Colorado, and all that other stuff, to get those first licenses that were medical that might be stuck as mom and pops. I hope they don’t just get washed out with pharmaceuticals.

At the same time, if there is Big Pharma and they are making advancements and they can make better Alzheimer’s drugs and better cancer treatments with cannabis, why would I not want them to do that? I mean, my grandmother passed away from complications of Alzheimer’s, my father was diagnosed with Alzheimer’s. He passed away last summer. My other grandmother had Parkinson’s. I mean, these are things … My stepfather is living with cancer right now. I mean, that’s like everyone in my family. Right? If Merck or Bristol-Myers Squibb or one of these companies that we’d like to vilify as a society, is able to put 500 million into research and grow THC out of yeast and put it into a thing that helps these guys, I mean, passionate or not, who am I to stand in the way of that?

I’m not so self-righteous to say that those people shouldn’t benefit too. But I am also cognizant of the fact that a lot of people took those first steps and are going to just get mauled over when that wave comes, and they’re going to lose everything because they tied it all up. Those are the ones, frankly, they’re going to be stuck with all the 280E taxation once the Feds fix that, and then all the big companies are rolling into. It’s one of those ones where you ducked the first wave and then three waves hit you. The truth is that there’s going to be a lot of early entrepreneurs and movers that are just going to get buried and pinned to the bottom of that thing and never make it out, and that sucks. There’s no doubt, but it’s the truth of where we’re at.

TG Branfalt: Do you think that 280E, it is what has prevented maybe some of these multibillion dollar corporations, alcohol companies, things like that, from getting into some of these more mature-

Travis Howard: No.

TG Branfalt: … markets?

Travis Howard: No, I don’t think that 280E really weighs on them at all, for the amount of money that they would spend and put into that, verse the capital outlay, especially the valuations on the stocks at this point. I really don’t think that that is the issue. I think there’s probably a handful of issues. Some of them are worried about brand tainting, and what does their community, how much of their sales are in the Bible Belt, and if something comes out and they’re public and they need to be disclosing this stuff. I think there’s some banking and credit card and FinCEN type stuff that probably keeps them out.

But when you’re looking at Colorado, why aren’t the pub codes here? Well, it’s because Hickenlooper said, “No.” I mean, flat out. I mean, I understand why in 2010, when the regulators were talking to everybody, why they didn’t want outside and public money in that stuff because we are one of those first movers. But by the time two, three, four states had gone after us and they had allowed out-of-state investment and public company investment and such like that, and Colorado just stood the ground and said, “Nope, we can’t do it. It’s the federal government.” It was just a cop out, and I think it was a way for some people in power to try to keep the industry in Colorado under wraps and under their thumb.

But I think Mr. Polis is quite aware. Where things are going this November, I think you’ll see a giant wave. All right? It’s been a disservice to a lot of folks out there that, that we’re able to put in their first 50 or $100,000 and get a dispensary open, and there was only a certain amount of independently wealthy people in Colorado that had an appetite for cannabis, and those people invested in certain companies. You saw LivWell go through the roof, and you saw Native Roots go through the roof, and you saw other companies that were able to put in and have that kind of cash and capital.

But if you didn’t have access to that person, and once the appetite for Colorado got invested into other places, you watch these other states, the Johnny-come-latelys, be able to go to a fund that’s based out of San Francisco or New York or Delaware or Connecticut, and bring in $50 million. The folks in Colorado that had bootstrapped up to three, four dispensaries, they just didn’t have the ability to do that. I am very glad and hopeful that some of that capital will come in and reward some of those good, hardworking people that did make it through the fight.

On the flip side, I’m sure there’s plenty of people that would take issue with what I just said, that are longtime activists and being like, “Nope, they’re going to come in here and they’re going to steamroll everything.” Well, that’s the other side of the coin. Again, it’s back to what I said, “What’s the reality?” There are going to be some good people that are going to get screwed in this, and there are going to be some good people that are going to get their final saving graces and be able to compete and keep the heart of this industry, from 2009, 2010 in Colorado, alive. But, as with anything, you swallow some good, you get a little bad. I’m not the arbiter of that, but that’s what I see happening.

TG Branfalt: I mean, you’re a very well-spoken, very super intelligent guy. Tell me about moving from being a cannabis lawyer to becoming a CEO, and what some of those challenges were, and how having that legal experience and that legal mind give you a leg up.

Travis Howard: That’s a good question. I appreciate the compliments. I’m just a guy out here learning on the street with everybody else. I don’t think there’s anything special about me except that-

TG Branfalt: You have a law degree.

Travis Howard: … I care. Well, I went to law school. I was very lucky. My dad paid for my undergraduate degree. I didn’t have loans like a ton of other people did. I was able to take my loans and put them towards law school. Had I had full four years of student loans for undergrad, I’m not sure I would have been able to stomach taking more of that. I was blessed to be where I was at and for the things that came my way. CU accepted me, and I love learning. I’m good at school, probably better at school than I am at business, to be frankly.

At the end of the day, the difference for me, coming out of the law, is it was all about me. A long time ago, someone wise told me there are two types of people on earth. There are people who are the gift, and there are people who build and share the gift. Those are the two gift givers in the world. I think to be perfectly honest, I’m more situated on I’m the gift, and not to be conceited, that’s not what that means. What that means is, I like to be with people.

When I’m talking to somebody, standing up for them, inspiring them, asking them questions, getting them motivated, helping them get feelings into words and actions stuff, I feel like my cup is full. They are shining and bright, and filling my cup up. There’s just a lot of spark and fun and energy. That is very easy to do when you’re an attorney working with somebody, and it’s a one-on-one relationship, and it’s just a really brilliant time and moment. Most attorneys aren’t good attorneys if they don’t get off on that, and that they’re not somebody that really appreciates and understands that.

On the flip side, becoming a CEO, I needed to figure out how to both give that to each employee and partner that I worked with, which now was spreading me thin, and at the same time, give that to the entity itself, which was trying to build something of its own to give as a gift. For me to be able to manage my own personality and the things that made me feel good and make me want to wake up and do more and be a positive contributor and then to also keep my eyes on the prize of … But my company is making a promise to give the … one time it was consulting services, operational contracts and now an actual good, balancing that and hiring and finding people.

Ultimately replacing myself as the CEO of Shift, was a wonderful gentleman, Edwin Fowler, and moving myself to the chief strategy officer where I could go back to tribal building and product building and make sure that my brand promises were being met, because managing both of those things was very, very intense. In fact, I’ve thought about, once you have a JD, you can go back and teach, and it qualifies you from some things. Whenever this cannabis thing is said and done for me, at whatever stage that happens, I want to go back and teach future entrepreneurs about those lessons of what you have inside yourself and how to scale through that culture and the .. I have made so many mistakes, Tim.

I have had people that I love dearly work with me and for me, that I couldn’t make good on ideas that we shared together because there simply wasn’t enough of me. It was painful for them, and it was painful for me. Those are things that sometimes you have to cut ties and move forward, and do all of these things. It’s very hard to keep … You can’t have sacred cows, and you start with a roomful of sacred cows, and how do you navigate that? I’ll tell you what, there is no shortage of the need for mentors to walk that through, and I’ve had a good amount, for my time, help me and I’m learning every single day. I’m 41 years old, and I feel like I know nothing. That’s how I feel every morning I wake up.

TG Branfalt: It’s a very Einsteinian thing to say.

Travis Howard: I don’t know. But what I know is the truth. I mean, at the end of the day, my wife is such a wonderful person. She’s deadly honest with me. A very strong Jewish woman who just speaks her mind and runs my house and my family, and I am a cog in her world. Trust me on that. She is one of the brightest people in my life, but just a great mirror. I can tell you, for as many lessons that she still tries to teach me, I am certain that I don’t know much yet.

TG Branfalt: You talked about the contributions and the promise of your company. Tell me about the Safe Roots Foundation. What do you do there?

Travis Howard: Safe Roots is a couple of great guys. Ethan Zohn and Kirk Friedrich, these two guys, the cannabis community will hear plenty more about Ethan and some things that he’s doing. He was one of the gentleman’s that first … one of the first survivors and then ended up getting diagnosed with cancer and making it through. Just an absolute inspired life and person. These two gentlemen had played professional soccer, ended up playing together various places, but in Africa they saw what HIV was doing. They told me something ridiculous. While they were in … I don’t want to butcher the country, I can’t remember which country it was.

I want to say Ethiopia, but that might not be right. But I believe it was an eastern country. They said something like 30% of the adults that were living there, while they lived there, had funerals. Every weekend was just the whole town was … and they realized that it was taboo to talk to the kids about sex and condoms and this stuff. They’re just like, who do they trust? Of course, soccer, football over there was such a big thing. They put together this grassroots foundation that was helping coaches and teachers who … Some of the most influential people in my life were teaching me soccer and football and hockey as a kid in Colorado and Wyoming.

These guys did that and really made a huge impact, and they ended up working with the Bill and Melinda Gates Foundation and a lot of stuff. Well, they saw cannabis as a way to get into something that we don’t do a very good job of in the United States, which is being honest with our youth about drug addiction and harm reduction. As a parent for myself, I’ve got three kids, they all know the word cannabis. They know marijuana, they know the difference between medical cannabis, they know the difference between recreational cannabis.

They know what it smells like, they know what it looks like, they know what to do if they find it somewhere or if a friend brings it to them, just like they know with bleach, paint, power tools, knives, guns, anything else dangerous that is a tool and useful for one thing but not for children without supervision or whatever the circumstances are. With all of that stuff said, they said, “Geez, cannabis is a topic that is hot that people are talking about. There is a change in how we’re looking. We want to put some of our paradigm from this grassroots foundation and what we’ve learned, and we want to build Safe Roots which can start talking to teachers and coaches, and this sort of thing, for children.”

The reality is … and of course, that’s a 21+ market. The truth of the matter is, is I used cannabis before I was 21. I don’t want my children to drink or use cannabis or do anything. In fact, I hope they go their whole life as sober individuals. I don’t think that that’s reality. I’ve got three of them. Maybe one of them will choose to live a sober life. But I can tell you one thing, if they’re 17 or they’re 30 and they’re out in a situation and somebody is peer pressuring them to slug the fifth of whiskey, to try this line of cocaine, or to smoke the joint, I want them to know the lesser of those things. I want them to be educated on harm reduction, and what to do and how to do it.

When I talked to these two guys, they were just preaching to the choir, and I was like, “Guys, I am in love with what you’re talking about.” We’ve got a couple of things going on at Shift. We’ve looked at, one, going into New Mexico, where we’ve got the dispensaries. New Mexico, in general, has a depressed economy. It’s one of the poorest economies in the country. It’s got a lot of alcohol and hard drug, methamphetamines, glues, paints, that stuff going on. You’ve got some cultural clashes and issues going on in the State as well. Also Safe Roots … Kirk lives in Albuquerque. It looked like just one of those, “Oh man, no brainer. Let’s put these things together.”

That’s something that we’re working on together and trying to get more cannabis companies and other sponsors to get that up off the ground and going, in addition in Colorado. One of the things that Shift is going to support financially as well is, there’s a Communities That Care program that is about youth prevention and harm reduction. There is a Communities That Care chapter out in Ridgeway, Colorado, which is out by Telluride in the Durango area, where we have one of the companies that I own, is called Dalwhinnie. We’re building a luxury cannabis company on this beautiful ranch, and I can explain part of my normalization push there.

But that brand where we have cultivation, where people are working. There’s a thousand people live in Ridgeway, and we’re the second largest employer in the county. Once we have our greenhouse open, we’ll probably be the largest, even above the school district. We feel like it’s really important to be involved out there, so we’re looking at that. Kirk is coming up next week to talk to that group and see if this is one that Safe Roots can support and make grants for.

Ultimately, Safe Roots wants to be collecting nonprofit funds and distributing them back out into, some instances, its own sports education programs, and in other instances, other community programs that have similar missions that the money can work with, because … especially, some of the stuff that’s coming out over the next few months from Ethan, which will be a national PR push. We believe that Safe Roots will be able to attract donors at a level that a lot of these local community groups won’t be able to. That is certainly something that Shift believes in and wants to be behind.

TG Branfalt: You’re in Colorado, it’s a mature market. You have children. Do you think that the Department of Health there … I should ask, what is the Department of Health doing in terms of harm … Is it harm reduction or they’re doing more propaganda? What are they doing in this regard?

Travis Howard: Yeah. I mean, some in both. Again, it’s intentions versus executions, and I don’t want to belittle any of the efforts at all. I do think some people have made a mockery of the Good to Know program, and there are some interesting propaganda points that I see on some of the public buses, and I’m like, “I’m in the industry, I’ve known cannabis a long time. I don’t even know what that sign means.” There is some stuff there that I scratch my head and wonder why we’re spending our money on it.

But at the same time, there is also a lot of the good programs. I think the Good To Know started with some of those unfortunate and terrible tragic accidents that came off of eating high dose edibles for people that didn’t understand. I know that whole wave that went through in 2014 and 2015 that was very sad for some very specific individuals. I think that was a good part of the program. But there are pieces of that program that is semi propaganda but is also very functional and useful across the board.

But what I see is a lot more of the local side. Sitting on the Boulder Marijuana Advisory Panel for the last few years, rewriting regulations, there were only three constituents from the industry on that inaugural panel, and they had somebody from Boulder Valley School district, they had two parents and community members, they had Boulder County Health on there. We had to balance the advertising. You can go in most of the states, and you can do giveaways of stickers, not in Boulder County. You can’t in the City of Boulder. I can’t give stickers away at a dispensary, I can’t do a buy one and get one for free. You can’t give schwag out for free. You have to sell it at cost.

They don’t want a proliferation of cannabis advertising going out to the youth, and they feel like stickers are a youthful movement. Of course, one of the things this is, is you’ve got this giant university sitting here, and three out of the four years at university in the undergraduate, you’re probably too young to be a participant in the recreational program. There’s been a lot of push in that regard, which has been probably good for the community, but it’s been tough for businesses because the competitors get to do that.

It’s also frustrating when you walk into a bar. I mean, I frequent Avery brewery. It’s by my house, it’s here in Boulder, and I walk in there, and they’ve got two month old onesies with Avery logos all over it. I’m like, “You can dress your kid up in beer outfits all day long and take your kid to Coors Field, but I can’t hand out stickers.” Yeah, it’s asinine. But at the same time, it’s really hard pressed when you look those people … This gentleman, Heath Harman, one of the best guys I know. We both have diabolically different views of what we want out of the cannabis industry.

However, sitting at that table, we’ve become good friends, and we respect each other. The truth is, in a community, back to my point about entrepreneurialism, you can’t just do it’s all for me. You have to be thinking about your community. When you see a guy like Heath that’s talking about real statistics, that really cares about the youth in his community, and he’s making bonafide statements, I can’t hold him accountable for the alcohol industry. I can’t hold him and blame him for some other laws that are hypocritical. I have to take him at face value, and say, “You’re right. You are making something. You’re making a statement that is logical to me, that makes sense, that we should consider these things.”

I recommend for, as many people as they can, to become a part of these political committees where you’re forced to work with, not just politicians but stakeholders in the community, that see things differently than you. One of the most unique parts about the Boulder Marijuana Advisory Panel is that when the city council gave it authority, they didn’t say that we had to come back unanimous. But we determined, in our very first meeting, that we were not going to put forward any recommendations to that council that weren’t unanimous.

To this day, that advisory panel has never taken a vote. If it’s not unanimous, we haven’t moved forward. We figured out how to come to a consensus and then make our recommendations. That process in itself would be great for our society. Forget cannabis, forget anything else. In today’s spectator sport, I mean, when did politics stop being something that you do yourself and becomes a spectator sport, like you’re rooting for your local football team?

TG Branfalt: I could sit here and talk to you for another hour, but we are running a bit long. Before we go, I want to get your advice for other entrepreneurs interested in joining the cannabis space.

Travis Howard: Well, I’ll tell you right now, the biggest piece of advice that I would give is the piece that I would go back 10 years and give myself, which is, with anything … They always says, “Well, when opportunity knocks.” That is horse shit. You are going to have so many opportunities knocking all day long. It is about weighing those opportunities and staying focused. Cannabis is just a microcosm of that, and a lens that has magnified that to a degree that you could quite easily build a business plan that makes you doing everything, being everything for everyone.

It would be so easy in cannabis to get caught in that trap, and what I would say today when, especially in Colorado and the new states that are allowing you to specialize, is take your 10th draft of your business plan and cut that in half. One simple specific thing and just go at it wholeheartedly. Even if you’ve got opportunities thrown at you every day, all day, for the next five years, stay laser focused. That’s my best advice right now in the cannabis industry for a newcomer.

TG Branfalt: Really great conversation. Could you tell us where we could find out more about you and Shift?

Travis Howard: Yeah. You can go to shiftcannabis.com, or Shift.Cannabis at Instagram. I got a lot of pages up there for all of our so called Shift mates. We’ve got phone numbers on there for the sales team. There’s 40 or 50 dispensaries around the metro area and the mountain area where you could find our products. But feel free to send us an Email, info@shiftcannabis. It comes to my desk. I respond to every single one or I put it in touch with the right people. We’re not shy, we’re here to talk, we’re here to help. We want to be a part of the solution in the future.

TG Branfalt: Travis Howard’s the founder of Shift, a serial entrepreneur, a really great guest. Thank you so much for coming on the show, Travis.

Travis Howard: Well, it’s my pleasure. I’m honored. Thank you for having me on here, and for giving us all a platform to share. Appreciate you.

TG Branfalt: Thank you. You can find more episodes of the Ganjapreneur.com Podcast in the podcast section of ganjapreneur.com, and in the Apple iTunes Store. On the Ganjapreneur.com website, you will find the latest cannabis news and cannabis jobs updated daily along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Trim at Media House. I’ve been your host, TG Branfalt.

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Study: Cannabis Flavonoids Contain Pain Relieving Properties

Researchers at Ontario, Canada’s University of Guelph say they have unlocked how cannabis is potent at reducing pain. The team announced findings on Wednesday that cannabis creates “important pain-relieving molecules that are 30 times more powerful at reducing inflammation than Aspirin.” 

The researchers found that flavinoids called cannflavin A and cannflavin B — both non-psychoactive compounds — reduce inflammation. The flavonoids were first discovered in 1985 but research on them was stymied due to Canadian drug laws.

Prof. Tariq Akhtar, Department of Molecular and Cellular Biology, one of the study’s authors, explained that the molecules “target inflammation at the source” but his co-author, MCB professor Steven Rothstein, noted that the flavinoids “are present in cannabis at such low levels, it’s not feasible” to engineer plants to create more of the compounds. He noted that the team is partnering with Toronto-based Anahit International Corp., which has licensed a patent from the university, to biosynthesize the flavinoids outside of the cannabis plant.

“There’s clearly a need to develop alternatives for relief of acute and chronic pain that go beyond opioids.” — Akhtar, in a statement 

Anahit chief operating officer Darren Carrigan indicated the company would commercialize products containing the compounds “through a variety of medical and athletic products such as creams, pills, sports drinks, transdermal patches and other innovative options.”

“Being able to offer a new pain relief option is exciting, and we are proud that our work has the potential to become a new tool in the pain relief arsenal,” Rothstein said in a statement.

The study was published in the journal Phytochemistry.

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Virginia Gets 800+ Hemp Applications

The Virginia Department of Agriculture and Consumer Affairs has had more than 800 applications to cultivate hemp in the state under the first year of its enhanced pilot program, according to the Roanoke Times. Ag Department spokesperson Elaine Lidholm said cultivators plan on growing more than 8,500 acres of hemp throughout the state.

Lidholm told the Times that applicants include both veteran farmers looking to diversify their crops and revenue streams, and first-time farmers interested specifically in hemp. 

“We know it’s creating a lot of interest, we know that hopefully it will help farmers add that extra revenue stream. It certainly appears to have some possibilities for Virginia agriculture.” – Lidholm to the Times

Virginia has had a pilot program since 2015 but it was a strictly controlled research program as hemp remained on the federal drug schedule. Last year, the federal government legalized hemp and in March the Virginia Legislature approved new rules and regulations to conform with the federal changes. However, states that have passed hemp reform laws in the wake of federal action are still awaiting program approval from the U.S. Department of Agriculture before they can make the programs permanent.

Last week, Virginia hemp farmers were notified by the state Ag Department that it would treat all hemp-derived extracts, including CBD, as approved food additives and place CBD processors under food safety inspection so their products could be sold in the state for human consumption.

In a letter to the state’s registered hemp growers, Ag Commissioner Jewel H. Bronaugh, indicated she was reversing her agencies previous guidance on CBD after pushback from farmers, noting that regulating the product is needed as “it appears unlikely that the U.S. Food and Drug Administration will act in the near future to provide a regulatory framework” for CBD.

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LC Solutions Michigan: Turn-Key Accounting for Cannabis Entrepreneurs

LC Solutions Michigan PLLC is a turn-key accounting agency for all official and ancillary participants in Michigan’s medical and upcoming adult-use cannabis industries.

Under the adult-use legalization initiative approved by voters last year, Michigan regulators are set to begin accepting adult-use business license applications by December 2019. Accordingly, the state released emergency draft rules for the industry in July, and businesses looking to get in on the ground floor of Michigan’s new adult-use industry are already scrambling to position for licensing and ensure regulatory compliance.

LC Solutions Michigan PLLC — the state’s only CPA firm that is dedicated exclusively to the cannabis industry — is prepared to help cannabis entrepreneurs formalize their business plans, ensure regulatory compliance, and deftly maneuver cannabis’ complicated financial accounting and tax landscape.

According to Kareyna L. Miller CPA, founder of LC Solutions Michigan, cannabis entrepreneurs are usually most concerned with filing taxes, but there are a lot of other frequently overlooked obligations to maintaining a successful and compliant cannabis operation.

“We work one-on-one with businesses,” Miller said. “The amount of financial accounting compliance this space requires can be very difficult to get through, especially for businesses who are transitioning from the unregulated market.”

LC Solutions experts can help with:

  • Starting a cannabis business and putting your business plan to work,
  • Strategic consulting, including payroll and financial projection preparations,
  • Compliance-minded bookkeeping and financial record keeping,
  • Cannabis tax preparation, including navigating Section 280E and more.

Michigan’s adult-use emergency regulations have been finalized and, with the state’s future cannabis license holders positioning themselves for the new market’s launch, the time for smart preparation is now.

As the state’s first woman- and patient-owned cannabis industry CPA firm, the team at LC Solutions Michigan PLLC boasts talented individuals with up to 30 years of accounting experience, as well as deep connections with the industry and a first-hand understanding of the regulatory requirements for operating in the cannabis space. The firm’s CPAs are uniquely positioned to help entrepreneurs prepare an intelligent and strategic entrance to the budding cannabis industry, whether they are coming into the space as a former caregiver or as an ancillary service that will work alongside licensed cannabis companies.

Visit LCSolutionsMichigan.com to learn more and schedule a consultation.

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Quebec Bans THC-Infused Sweets and Topicals

The Quebec government has banned the sale of potent THC-infused candies, confections, and deserts about three months before cannabis edibles will be allowed to be sold throughout the nation, the Canadian Press reports. The government says the ban applies to “any … product attractive to minors.” 

Edible products containing 5 milligrams of THC per unit and 10 milligrams per package are excluded from the ban and drinkable products are capped at 5 milligrams per container under the rules – but products like gummies and other sweets will not be permitted. The government is also considering capping THC limits on all cannabis products sold in the province at 30 percent, according to the report, but has not implemented such a policy. 

Under the provincial regulations, cannabis-infused topicals will also be banned “for the moment.”

Under federal rules, edible products are capped at 10 milligrams of THC per package and 1,000 milligrams per package for concentrates and topicals. The rules prohibit the products to be “appealing to children” or make any health or nutrition claims. 

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

So-called alternative cannabis products will be legal for sale in Canada on Oct. 17 but officials estimate it will take about 60 days before products make it to retail shelves. 

 

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Senate Committee Holds Hearing on Cannabis Banking

The Senate Committee on Banking, Housing and Urban Affairs held a hearing aimed at the banking challenges for the cannabis industry yesterday, but only one Republican committee member bothered to show up, CNBC reports. Of the 13 GOP members on the committee, only Chairman Mike Crapo attended the hearing.

Sen. Corey Gardner, a Colorado Republican who is a co-sponsor of the SAFE Banking Act which would allow banks to do business with the cannabis industry, testified during the hearing and called the hearing “an important step toward the federal government waking up to the reality that the cannabis issue is not going away and needs action.”

“In short, the states are leading on this issue, and the federal government has failed to respond. It has closed its eyes and plugged its ears and pretended the issue will go away. It won’t.” – Gardner, during his testimony, via CNBC

Joanne Sherwood, CEO of Citywide Banks on behalf of the American Bankers Association, provided written testimony to the panel, outlining the industry’s issues obtaining banking access and noting that while some financial institutions are serving cannabusinesses, the majority “will not accept the legal, regulatory, or reputational risk associated with banking cannabis-related businesses absent congressional permission to do so.”

Brady Cobb, CEO of cannabis investment firm SOL Global and a former cannabis industry lobbyist, told Yahoo Finance that Crapo appeared to have taken the hearing seriously.

“Sen. Mike Crapo saying there is a strong case for cannabis banking to be fixed is one of the clearest statements of intent to date, and for it to come from the chair of Senate Banking shows how seriously this reform is being taken,” Cobb said in the report.

Cobb indicated that, as a lobbyist, he is urging the Democratic members of Congress to avoid adding other issues to ‘baby steps’ legislation – such as social justice – because Republicans are more likely to support cannabis-related bills that are narrow in their scope.

“It’s so bizarre to me that after fighting to turn Republicans for two to three years on this issue, now they’re kind of in lockstep, and I gotta go back, and now I’m going to the Democratic side of the of the hallways going ‘Come on, we’ve got ’em here, what are you doing?’” he said.

The Democratic members who attended the hearing – which did not include Sen. Elizabeth Warren, who represents Massachusetts, which allows adult-use sales – largely supported the reforms.

Ranking member Sen. Sherrod Brown (D-Ohio) explained that, due to federal law, legal cannabis operators “are forced to operate in the shadows.”

“Dealing in large amounts of cash puts a robbery target on the backs for workers, creates a safety hazard for communities and makes it harder to combat money laundering,” she said during the hearing.

Sen. Jeff Merkley (D-OR), a sponsor of the SAFE Banking Act, urged his colleagues to pass the bill.

“There’s nothing good about forcing the cannabis industry to operate in cash,” he said.

Despite the support for the measure – seemingly from both sides of the aisle from the lawmakers in attendance – the SAFE Banking Act has not been voted on by either chamber.

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Federal Proposal Would Give Cannabis Industry Access to Insurance Services

New Jersey Sen. Robert Menendez (D) has introduced legislation to ensure cannabis businesses can access property, casualty, and title insurance. The Clarifying Law Around Insurance of Marijuana (CLAIM) Act, has bipartisan support in the Senate including Democrat Jeff Merkley (OR) and Republicans Rand Paul (KY) and Kevin Cramer (ND) as co-sponsors.

The bill would perform a similar function for the insurance industry as it relates to the cannabis industry as the SAFE Banking Act would for financial institutions – giving the sector explicit approval to serve cannabusinesses.

Menendez indicated that the measure would “ensure businesses can fully operate just as any other small business would.”

“Current federal law prevents these small business owners from getting insurance coverage, and without it, they can’t protect their property, employees, or customers. We can solve this problem with legislation that allows insurance companies to provide coverage to these enterprises without risk of federal prosecution or other unintended consequences.” – Menendez, in a statement

Along with preventing federal interference for companies who provide services to the cannabis industry, the CLAIM Act would prohibit penalizing or discouraging an insurance company from providing coverage to a state-legal cannabis business, including associated businesses such as lawyers or landlords working alongside the cannabis industry. It would also prevent the termination or limitation of policies because of cannabis-related business activities.

The Republican backers of the legislation both pointed to cannabis laws being a state’s rights issue and the bill being a free-market approach to the industry.

“The principles behind the CLAIM Act are simple: respect the voices of the states and their people and stop shutting out legitimate businesses from obtaining basic protections,” Paul said in a statement. “The states are making their own decisions on these issues, and it’s time for the federal government to accept that.”

Cramer called the measure “a federalist approach by opening the insurance market to compliant businesses and preventing federal law from hindering employees’ market access.”

“Federal law should not prohibit access to insurance for employees of local businesses these states voted to support, nor should it prohibit employers from acquiring insurance that protects their stores,” he said in a statement.

The CLAIM Act follows a bevy of bills introduced in Congress this session to normalize the cannabis industry or more broadly reform cannabis laws. In addition to the SAFE Banking Act – which was the subject of a committee hearing yesterday – Democratic Senators Kamala Harris (CA) and Corey Booker (NJ) have sponsored bills to remove cannabis from the federal drug schedule. Both Harris and Booker are running for the Democratic presidential nomination. Another presidential candidate, Massachusetts Sen. Elizabeth Warren (D), has also introduced legislation to strengthen the Tenth Amendment (STATES Act) as it relates to federal cannabis policy.

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North Carolina Lawmakers Consider Hemp Flower Ban

North Carolina is considering a ban on hemp flower due to its likeness to psychoactive cannabis, according to a News & Observer report. The issue is creating a battle between two of the state’s more powerful lobbying groups: farmers and law enforcement.

The law enforcement lobby is opposed to a Senate bill to expand the state’s hemp pilot program because, they argue, that legalizing hemp flower would make it harder for them to enforce existing cannabis laws; while farmers contend that smokable hemp flower is more lucrative than oils derived from the plants. Keith Edmisten, a cotton and hemp specialist at NC State University, told the News & Observer that farmers can get $40 per 3.5 grams of hemp flower compared to the same amount per pound of hemp-derived oils.

During a hearing on the issue, Pat Short, a farmer and member of the NC Industrial Hemp Commission, said that changes to the hemp legislation to ban flower would “pull the rug out” from under farmers, some of which have already invested in new equipment to process the crop for flower.

“If they’re in the middle of a crop, they’ve made huge investments and have to support them,” he said.

Fen Rascoe, another farmer and commission member, called the proposed changes “the most anti-farmer legislation in the General Assembly in 100 years.”

House Republicans have already amended two bills aimed at expanding the hemp industry in the state to ban smokable hemp flower.

Guy Carpenter, a commission member who uses hemp to make apparel, pushed back at suggestions by law enforcement members that smokable hemp is a gateway drug and compared the products to non-alcoholic beer.

“Drinking root beer does not lead you to drinking beer. I’m tired of North Carolina being the circus state and having ridiculous laws.” – Carpenter, during the hearing, via the News & Observer

In response to the farmers’ concerns, the Senate approved a compromise – banning hemp flower in Dec. 2020, which would allow farmers cultivating hemp for flower to capitalize on those crops while an alternative is devised to help law enforcement distinguish between hemp flower and its psychoactive cousin.

The debate in the Tar Heel State comes after some prosecutors in Texas said they would toss low-level cannabis charges due to the state’s hemp law and the inability to distinguish hemp flower that contains 0.3 percent THC or less from its THC-rich counterpart. Some law enforcement agencies in Florida have been instructed not to detain people based on the odor of cannabis because it could be a legal hemp product.

North Carolina lawmakers will consider the amendments for the hemp expansion law during another hearing today.

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Federal Lawmakers to Propose New Decriminalization Bill

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

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

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

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

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

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

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

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

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California Has Seized $30M In Illegal Cannabis Since 2018

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

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

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

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

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

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

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

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

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Michigan Announces Social Equity Program Plans

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

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

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

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

The communities include:

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

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

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Texas Prosecutors Are Tossing Cannabis Possession Cases

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

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

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

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

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

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

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

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Florida Police to Stop Detaining for Cannabis Odor

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

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

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

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

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

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

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

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

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Utah Awards 8 Medical Cannabis Cultivation Licenses

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

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

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

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

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

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

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

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Ooze Kettle Silicone Hybrid Bubbler/Dab Rig Review

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

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

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

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

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

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

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

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Ohio Legislature Approves Hemp & CBD Bill

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

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

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

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

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

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

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Canada Approves Second Stoned Driving Saliva Test

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

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

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

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

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

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

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

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

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

Most Minnesota PTSD Cannabis Patients Report Reduced Symptoms

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

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

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

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

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

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

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

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Audit Finds California Cannabis Regulators Understaffed, Short on Cash

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

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

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

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

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

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

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

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

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Aurora Wins Italian Medical Cannabis License

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

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

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

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

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

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