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Truckload of “Marijuana” Seized in Oklahoma Is Likely Industrial Hemp

2/05/2019

Law enforcement officers in Oklahoma jailed a truck crew and seized 9 tons of suspected marijuana earlier this month and even began prosecution before test results revealed it was what the drivers claimed — industrial hemp — according to a Tulsa World report.

The truck was searched during a traffic stop violation on January 9 in Pawhuska, Oklahoma. The truck was en route from Kentucky to a business in Colorado that had legally purchased the hemp, which was legalized across the U.S. via the 2018 farm bill’s passage. The truck drivers and the drivers of a follow van were jailed under drug trafficking charges. The truck contained more than 17,000 pounds of hemp.

Officials in Oklahoma claimed it was unclear that it wasn’t marijuana, even though James Baumgartner, president of the company purchasing the shipment, produced paperwork certifying that the shipment had been tested to contain less than 0.3 percent THC.

Lawyer for the accused Matt Lyons said that federal testing has now been completed on 11 separate samples taken from the shipment — all showing percentages at or just barely above 0.3 percent THC. All of which were below 1 percent THC however, which is the bar set federally for the difference between negligent and intentional violation of marijuana laws. “Negligent” or accidental transport of industrial hemp containing over 0.03 percent THC carries no penalty federally, though Oklahoma retains the right via state law to possibly fine the business transporting the product.

The Osage County, Oklahoma District Attorney was not satisfied, however, and ordered that the entire shipment now be tested. Strangely enough, the only place with capable testing facilities is where the shipment was headed in the first place — Colorado. Lyons questioned this decision: “Why is this [still] being criminally prosecuted? Is this because you made the mistake of prosecuting them before the tests were done?”

Drivers of the follow van have been able to post bail, but the truck drivers are still in jail in Oklahoma.

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Study: Oregon Has 6.5 Years of Cannabis Oversupply

2/05/2019

by Pat Beggan

A study completed last week by the Oregon Liquor Control Commission and submitted to state legislators shows that the level of oversupply in the Oregon market is so high that existing stocks could supply 6.5 years of current demand, The Oregonian reports.

The report was compiled over the last three years of growing and two years of legal sales. Regulators wanted to stay in touch with how the market was developing and identify what policies may need to be adjusted. A previous audit by the Oregon Health Authority showed that regulators were not staying up on inspections or doing enough to prevent the diversion of cannabis product to the illicit market.

Demand consisted of about half of the cannabis produced between July 2017 and June 2018, which was 2,000 metric tons (4.4 million pounds). If licenses continue to be approved as expected, Oregon is expected to produce 4,000 metric tons (nearly 9 million pounds) of cannabis by June 2019.

The main problem created by this oversupply, for the cannabis industry, is plunging prices.

Other interesting data from the report: cannabis sold in legal adult-use stores only consists of about 45 percent of the amount actually consumed in the state by end users. The rest comes from a variety of sources, including legal home grows, medical dispensaries and the illicit market. Medical patients are starting to transition to adult-use stores as well, and the state’s medical cannabis program is shrinking.

Analysts do not believe that there is one clear path on the issue, such as capping producer licenses. Should the federal government legalize interstate commerce of cannabis, for instance, Oregon’s oversupply could suddenly be worth a lot of money once shipped around the U.S.

There is currently a bill in the Oregon legislature that hopes to establish interstate cannabis commerce, though it may not accomplish much without federal legalization.

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Maine Bans CBD Edibles Sales Outside Dispensaries

2/04/2019

The Maine Department of Health and Human Services (DHHS) is limiting the sale of edible CBD products in the state to medical cannabis dispensaries only, citing statements made by the FDA following the 2018 farm bill’s passage, The Press-Herald reports.

Health inspectors started informing businesses last week that they needed to remove all edible CBD products from their shelves — even the dog treats. Interestingly, products that are consumed by smoking and vaping or that are used topically are not affected by the ban.

The DHHS pointed to recent rulings by the FDA that say until regulations are created stipulating exactly how CBD products are to be sold, it is technically an unapproved food additive, despite hemp‘s newly legal status.

“We just had the carpet pulled out from under us. Hemp just got legalized nationally and now Maine wants to do a 180 and make it illegal here, when we’ve been doing it with their blessing for two years now? How did CBD suddenly get unsafe? This is ridiculous. This cannot stand. People need to know what the state is up to and demand the state keeps its hands off our CBDs.” — Dawson Julia, Owner of East Coast CBDs in Unity, via The Press-Herald

Advocates for CBD are gathering for the Rally for CBD and Hemp Farmer Rights on Tuesday inside of the Maine Statehouse at 9:00 am EST. They argue that the recent ruling is unnecessary and unfair to existing retail CBD businesses, who have been thrust into a state of “unforeseen distress,” according to the event description. The rally will also include “meet the press” and “product show and tell” opportunities for CBD entrepreneurs and enthusiasts to share their stories with lawmakers and the public.

The recent DHHS ruling doesn’t affect the state’s medical cannabis system — it only applies to regular stores selling products that are not regulated under the state-legal system. Those who need CBD tinctures and other edible products should either seek a medical cannabis card or make their CBD purchases online.

The FDA has indicated that rules are coming to allow for the interstate commerce of edible CBD products, though the timeline is uncertain even though hemp and its derivatives were legalized prior to Christmas.

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New York May Delay Legalization Over Budget Woes

2/04/2019

Despite a push from Gov. Andrew Cuomo (D), New York lawmakers are struggling to agree on a cannabis legalization plan for the state and may end up delaying until another year, according to The Daily Star.

Cuomo still has hope, however, for legalization to be structured and funded by the state budget deadline of March 31, though other lawmakers are not optimistic.

Complications began when Assembly Speaker Carl Heastie (D) said he was in no rush to approve the proposal. “I want to get it right, rather than beat a ‘time clock,'” said Heastie.

Other New York officials have suggested that legalization would require police to hire more drug recognition experts. Other issues include a lack of intoxicated driving detection methods for cannabis and no clear way forward on the proposed expungement of previous cannabis crimes.

While Cuomo said, “I’m not ready to give up yet,” the budget proposal recently submitted by the governor’s office does not include funding for the stated needs of many lawmakers.

The clock is ticking. Cuomo had promised that cannabis legalization would be a priority for his ninth year of governorship. If the program is not approved by April 1, the next deadline that might work would be in June. Every time the program is pushed to the next deadline, however, the launch of regulated cannabis sales is also pushed further back.

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Tennessee Proposal Would Validate Out-of-State Medical Cannabis Cards

2/04/2019

Several pieces of cannabis legislation are being considered in Tennessee this session, including one that would allow out-of-state medical card holders to legally possess cannabis in Tennessee, according to the Tennessean.

The bills SB 260/HB 234 were introduced by state Sen. Sara Kyle (D-Memphis) and state Rep. Gloria Johnson (D-Knoxville). The bills would allow cannabis patients in Tennessee with valid medical cards from another state to possess up to half an ounce of cannabis. They would also allow a person holding a valid medical cannabis card to legally give cannabis to another card holder in the state.

The legislation has passed the Judiciary subcommittee in the Senate and is currently being considered by the Criminal Justice subcommittee in the House.

State Sen. Kile also submitted SB 256, a bill to decriminalize possessing up to an ounce of cannabis.

While all currently submitted cannabis legislation in Tennessee is so far sponsored by Democrats, Republicans in the state have also said they would be submitting cannabis legislation. A bill expected to be submitted by Sen. Janice Bowling (R-Tullahoma) and Rep. Ron Travis (R-Dayton) would create a state government commission to regulate cannabis in the state.

Lawmakers in Tennessee have until the end of this week to submit legislation to be considered this session.

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Feds Raid 50 Suspected Illicit Grows in Denver

2/01/2019

A large force of DEA agents and local law enforcement raided approximately 50 suspected illicit grow houses in the Denver metropolitan area early Thursday, according to a Denver Post report.

A spokesperson from the DEA’s Denver office said that search warrants were served on homeowners and residents across the Denver area. This is the third major DEA raid in the last five months.

Indoor home grows, to a certain size, are legal within the laws of Colorado. The only information currently available is from the DEA about those being served with warrants, however. According to Denver DEA spokesperson Randy Ladd, all the homes served in the raid were connected to east coast-based organized crime.

Ladd believes that Colorado’s legalization — not the ongoing prohibition of cannabis elsewhere — is to blame for the large amount of grow house busts in the Denver area over the last five months.

“Colombia is to cocaine as Colorado is to marijuana.” — Randy Ladd, DEA Spokesperson, via the Denver Post

Ladd also suggested that illicit cannabis operations in Colorado have brought more murders, robberies, and gun trafficking to the state.

Although flashy, Thursday’s raid in the 10900 block of Unity Lane and the 11500 block of Chambers Drive in Commerce City, among other spots in Denver, did not result in any arrests. Earlier raids, such as one in October targeting the Aurora suburb of Denver, also did not net any arrests.

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Washington Department of Health Suspends Heavy Metals Testing

2/01/2019

The Washington Department of Health requirement for heavy metals testing has been temporarily suspended, according to an announcement by the Department of Health.

The rules are voluntary, meant to be used as a way to provide additional safety to consumers on top of mandatory Washington Liquor and Cannabis Board (LCB) rules. The LCB does not require either heavy metals or pesticide testing. To receive the logo certifying compliance, producers previously needed to complete the additional testing.

The regulations have been suspended temporarily over a lack of LCB-certified testing labs for heavy metals as of January 24. The Washington Department of Health says it hopes to secure a new lab in the near future, though the suspension is expected to remain for an unknown amount of time dependent on the LCB certifying a new lab for heavy metals testing.

While the temporary suspension of heavy metals testing is in effect, producers using the certification logo will be required to display a notice on the packaging that says, “Not tested for heavy metals.”

Washington producers or patients with questions should call the Medical Marijuana Program office at 360-236-4819 or email medicalmarijuana@doh.wa.gov.

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Extra crystallized cannabis cola from a licensed Washington cultivation site.

World Health Organization Recommends Reclassifying Cannabis

2/01/2019

The World Health Organization (WHO) has called for the removal of the cannabis plant and its resins as a controlled substance from international treaties to which nations are beholden, according to Americans for Safe Access.

Specifically, the WHO has called for cannabis to be removed from its position as Schedule IV — the highest restriction possible — under the Single Convention on Narcotic Drugs of 1961.

The move is significant because, if the recommendations are adopted, no nation would be able to call international treaties a reason for continuing the prohibition of cannabis. Furthermore, the WHO’s recommendations would see governments obligated to ensure the availability of cannabis for medical purposes, such as herbal pain relief.

“We are extremely pleased that the World Health Organization has finally recognized the therapeutic potential of cannabis and its derivatives as a safe and effective medicine. With an international rescheduling or descheduling of cannabis, the U.S. government can no longer use the excuse that cannabis has no medical value.” — Steph Sherer, president and founder of Americans for Safe Access, in a statement

The recommendations will now be put to a vote during the next 60-second session of the Commission on Narcotic Drugs, planned for March 2019 in Vienna, Austria.

“It is gratifying that the World Health Organization has recognized the scientific fact that cannabis and its derivatives have demonstrable therapeutic properties and can be the base for safe and effective medicines,” said cannabinoid researcher Dr. Ethan Russo of the International Cannabis and Cannabinoids Institute. “It is now incumbent upon governments of the USA and other nations to eliminate the barriers to research on cannabis and allow its free commerce across state lines and international frontiers.”

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Canadian Producer Profit Projections Are Falling Significantly

2/01/2019

In the last 90 days, Wall Street analysts have significantly lowered their projections of earnings-per-share for several major publicly-traded cannabis stocks, The Motley Fool reports.

Earnings estimates for three of Canada‘s top producers for the 2020 fiscal year have plunged up to 71 percent in Canadian dollars.

Canopy Growth’s earnings per share in the 2020 fiscal year as of 90 days ago, for instance, were projected to be CA$0.28. As of the updated forecast, they’re now CA$0.08, a 71% reduction. Aurora Cannabis saw their projected forecast go from CA$0.16 to $0.12. Tilray’s earnings-per-share are projected to fall from a loss of 32 cents Canadian per share to an expected loss of 41 cents Canadian per share.

Analysts suspect a number of factors are at play with these broad reductions in earnings forecasts.

First, there is no reliable precedent for the development of this industry. The cannabis industry exists somewhere between agriculture and pharmaceuticals; it makes analysts uncomfortable with predicting outcomes as the industry develops.

Additionally, startup costs are huge. These companies are posting big losses quarter-to-quarter due to that — they’re spending their money, not yet making it.

Regulation is also uncertain. Many policies are not completely developed or rolled out, which means that it’s unpredictable exactly how the industry will develop.

And these companies are also diluting their shares: many acquisition and merger deals are paid for in stock, which means that there are more shares created all the time. Aurora, for instance, had a share count of about 16 million at the end of 2014; as of 2019, Aurora has issued at least 962 million shares.

While the earnings projections for these companies may not fully indicate the overall health of the developing cannabis industry, what’s clear is that there is more than enough uncertainty to go around — especially when it comes to investing in a publicly-traded cannabis company.

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Washington’s Top Cannabis Regulator: Growers Could Soon Sell Direct to Consumers

1/31/2019

At a conference last week, the director of the Washington Liquor and Cannabis Board (LCB) said that the state is considering allowing small producers to sell directly to consumers, Leafly reports.

In previous years — during Washington’s medical-cannabis-only period — “cannabis farmer’s markets,” where producers could sell directly to patients, were common.

The latest statement from Rick Garza, the Director of the LCB, was posed as a solution regarding financial difficulties faced by many Washington growers. Washington does not allow vertical integration — where a single business is in charge of both the producing and selling sides of the market — and this has created strong competition for customer dollars, as well as shelf space in retail stores.

While many growers are struggling, retailers and customers both seem to be satisfied with the system. Allowing growers to reach customers directly would also help the growers be satisfied as well.

The proposal still needs to be voted on by the full 3-member LCB, however. Even after passing that hurdle, it’s unclear exactly how growers would sell to customers directly — whether it would be a return to a farmer’s market structure or if it would be more along the lines of how wineries and distilleries in the state have tasting rooms.

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Adult-Use Legalization Bill Introduced in Minnesota

1/31/2019

A bipartisan bill to legalize adult-use cannabis in has been introduced to the Minnesota state legislature, according to Rolling Stone.

The bill was sponsored by state Sens. Melisa Franzen and Scott Jensen and state Rep. Mike Freiberg. The bill would make it legal for anyone over the age of 21 to possess cannabis and would create a regulated structure for testing and sales. Home growing would also be legal under the bill.

Freiberg issued a statement addressing the outdated cannabis laws in Minnesota.

“It is forcing marijuana into a shady underground market, which creates more potential harm for consumers and communities than marijuana itself. Regulating marijuana would make our state safer by removing the criminal element and empowering our state and local governments to start controlling production and sales. Our focus in drafting legislation to end the prohibition of cannabis in Minnesota is to ensure we have a responsible regulatory model for consumer access that still provides for public health, safety and welfare. The time has come for us to have this debate.” — State Rep. Mike Freiberg, via Rolling Stone

The bill also prohibits marketing to teens, would allow local governments to have a say in what cannabis businesses are allowed in their towns, provides for expungement of some previous cannabis-related crimes, and appropriates $10 million annually towards poorer communities unduly affected by cannabis prohibition.

The bill tasks the Minnesota Department of Health with creating regulations for the cannabis market’s roll-out and operation.

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Michigan’s Medical Cannabis Application Website Now Online

1/31/2019

Applying for a medical cannabis card in Michigan just got a lot faster and easier thanks to the state’s new online medical portal, Michigan Live reports.

According to regulators, the new site will allow officials to issue medical cards much faster. An applicant may even be able to get their card in as few as two or three days following physician approval.

Before now, applicants had to apply via paper forms and the U.S. Mail — and renew via the same method.

“We are pleased to be able to make these services available online. It’s a small but significant step in making access to government services easier for Michigan residents. Our new online capabilities deliver services where and when and at the times our constituents need them.” — Orlene Hawks, Director of the Department of Licensing and Regulatory Affairs, in a statement

The new online registration services also work for doctors who are seeking to register with the Michigan system in order to issue medical cannabis cards. This will allow more doctors to be approved for the program as well, even further speeding up the process for patients.

The new features can be accessed on Michigan.gov.

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California May Cut Cannabis Taxes Soon

1/30/2019

California lawmakers have announced a bill that would reduce cannabis excise taxes and eliminate cultivation taxes, The Sacramento Bee reports.

Assembly Bill 286, if approved, would reduce the excise tax on cannabis goods from 15 percent to 11 percent. A three-year cultivation tax for growers would also be completely eliminated.

“Those good businesses, those good actors, are not able to compete with the black market product if they cannot be competitive on price and cost.” — Assemblyman Rob Bonta, co-sponsor of the bill, via the Sacramento Bee

California’s cannabis customers sometimes pay taxes accounting for up to 45 percent of the actual cost of the product, according to reports by industry analysts. On top of the taxes that may be adjusted by this bill, there are also local taxes, which can be considerable.

California tax income from has been below projections, largely because a majority of citizens continue to purchase their cannabis from the illicit market due to the high cost of legal cannabis products. Industry members have complained to the state on several occasions about the high taxes.

California state Treasurer Fiona Ma said, “We don’t tax start-up businesses [in other industries] when they start. We need to do better. This is anywhere from a $6 billion to $20 billion industry here in California.”

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Baltimore to Stop Prosecuting Cannabis Crimes

1/30/2019

State’s attorney Marilyn Mosby of Baltimore, Maryland said this week she will stop prosecuting cannabis crimes, according to The Baltimore Sun.

Mosby has promised to not prosecute for cannabis no matter the criminal history of an individual. Mosby also called for the Baltimore courts to vacate 5,000 existing cases of cannabis possession.

“When I ask myself: Is the enforcement and prosecution of marijuana possession making us safer as a city? The answer is emphatically no.” — Marilyn Mosby, via The Baltimore Sun

Other prosecutors in major cities across the country have made similar moves recently. At the press conference for the announcement, however, no representatives from the city of Baltimore or law enforcement were on hand. After the conference, however, Baltimore Mayor Catherine Pugh announced her support for Mosby’s move.

Mosby said that cannabis prosecutions have derailed job searches and resulted in thousands of unnecessary criminal records, a phenomenon that disproportionately affects minority communities. National statistics show that African-Americans are arrested for cannabis crimes at four times the rate of white people, despite similar usage rates between the two demographics.

Mosby also pointed out that police resources are wasted on cannabis crimes. The police case closure rate for murders in Baltimore — of which there were 309 in 2018 — is about 25%, meaning that 75% of murderers in Baltimore go unsolved. It seems silly to worry about cannabis possession or even distribution with a statistic like that.

Interim police commissioner Gary Tuggle, a former DEA agent, said he would not order his officers to cease arresting people for cannabis crimes. Despite police resistance to the initiative, Mosby is attempting to mobilize support outside of her own office.

Cannabis advocates are on her side. “We applaud State’s Attorney Mosby. Decades of arresting people for marijuana possession did not make Baltimore safer,” said Olivia Naugle of the Marijuana Policy Project.

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Canadian Stock Exchanges Holding Lottery for Ticker Symbol POT

1/30/2019

The stock symbol POT, formerly for the now-defunct Potash Corp. of Saskatchewan, has become available in Canada and interest is so high that it will be awarded via a lottery, according to a Chicago Tribune report.

Potash Corp. merged with Agrium and the companies are now called Nutrien.

The random lottery draw will happen Wednesday, January 30 in Toronto. A spokesperson for a major Toronto exchange declined to release the number of applicants for the lottery.

Several cannabis companies rely on catchy stock tickers in Canada’s stock exchange markets, including WEED which represents the world’s most valuable cannabis company, Canopy Growth Corporation. The symbol MJ is used by the ETFMG Alternative Harvest Exchange-traded fund.

The lottery is open to any interested company listed on any exchange in Canada. This includes the Toronto Stock Exchange (TSX), TSX Venture Exchange, Canadian Securities Exchange, and Aequitas NEO Exchange. Exchange-traded funds and businesses without an active operating business are not allowed to participate in the lottery, however.

Cannabis became legal in Canada last October and has since then experienced successful provincial roll-outs nationwide. While flower products are available for purchase both online and in licensed retail locations, however, regulators are still determining rules for the sale of cannabis vaporizers, concentrates, edibles, topicals, and more.

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Liz Gehl: Executive Recruiting for the Cannabis Industry

1/29/2019

by TG Branfalt

This podcast is produced by Ganjapreneur, your source for cannabis industry news and insights.

Liz recently joined our podcast host TG Branfalt to discuss her strategies for recruiting mid-level to executive leadership candidates for the cannabis space. This interview covers Liz’s recruitment strategy — which relies on long-term, trust-building partnerships between herself, clients, and candidates — as well as her liberating transition as an executive recruiter for other highly regulated industries to launching her own firm with a specific goal of working with cannabis companies. According to Liz, the best cannabis candidates should bring a passion for the plant, perseverance in their work despite regulatory challenges, and an eagerness to make some sacrifices for an opportunity to help shape the nascent cannabis industry.

You can learn more by listening to the interview via the player below, or scroll further down to read a full transcript of this podcast episode!

Listen to the podcast:

Read the transcript:

Commercial: At Ganjapreneur, we have heard from dozens of cannabis business owners who have encountered the issue of cannabias, which is when a mainstream business, whether a landlord, bank, or some other provider of vital business services, refuses to do business with them simply because of their association with cannabis. We have even heard stories of businesses being unable to provide health and life insurance for their employees because the insurance providers were too afraid to work with them. We believe that this fear is totally unreasonable, and that cannabis business owners deserve access to the same services and resources that other businesses are afforded, that they should be able to hire consultation to help the follow the letter of the law in their business endeavors, and that they should be able to provide employee benefits without needing to compromise on the quality of coverage they can offer.

This is why we created the Ganjapreneur.com business service directory, a resource for cannabis professionals to find and connect with service providers who are cannabis-friendly and who are actively seeking cannabis industry clients. If you are considering hiring a business consultant, lawyer, accountant, web designer, or any other ancillary service for your business, go to Ganjapreneur.com/businesses to browse hundreds of agencies, firms, and organizations who support cannabis legalization and who want to help you grow your business. With so many options to choose from in each service category, you will be able to browse company profiles and do research on multiple companies in advance, so you can find the provider who is the best fit for your particular need.

Our business service directory is intended to be a useful and well-maintained resource, which is why we individually vet each listing that is submitted. If you are a business service provider who wants to work with cannabis clients, you may be a good fit for our service directory. Go to Ganjapreneur.com/businesses to create your profile and start connecting with cannabis entrepreneurs today.

TG Branfalt: Hi, there. I’m your host, TG Branfalt, and you are listening to the Ganjapreneur.com podcast, where we try to bring you actual information and normalize cannabis through the stories of Ganjapreneurs, activists, and industry stakeholders. Today, I’m joined by Liz Gehl. She’s the owner of Gehl Search Partners, a talent recruitment firm specializing in finding qualified personnel for highly regulated industries with a focus on positions in sales, marketing, strategy, and planning, compliance, finance, accounting, and administrative roles. She does a whole lot. How are you doing this afternoon, Liz?

Liz Gehl: Hi, TG. Doing well. How are you?

TG Branfalt: I’m doing great. I’m doing great. I’m excited to talk to you. As I was mentioning before we hit the play button, this is something that I’m really far removed of, but it’s really exciting for me to get to talk about this and to get into some of the details, but before we get into the details of what you do with Gehl Search Partners, tell me about you. What’s your background, and how did you end up in the cannabis space?

Liz Gehl: Sure. I’ve been working in human resources and recruiting for my entire career, in many facets, while concurrently being a medicinal and recreational cannabis user. So up until beginning Gehl Search Partners, at times it felt like I was living a double life. I had such a passion and belief in the benefits of cannabis. It was heartbreaking in my professional life to have to rescind job offers or turn talented people away given their cannabis use. So with my background in HR and recruiting for the adult beverage industry, I saw an obvious correlation between cannabis and alcohol in terms of the regulatory side of the business, and getting this product out to the masses in a responsible way, utilizing that three-tier system that we already have in the alcohol industry.

Given my background and passion for the alcohol industry as well as the cannabis industry, it was a natural progression for me to focus my firm on the two industries and hopefully be able to show individuals and companies out there that the two industries can continue to collaborate and co-exist.

TG Branfalt: What do you guys do over there? Tell me about the process for people who might not be familiar with what recruiters actually do.

Liz Gehl: Sure. We provide high-caliber mid-level to C-level talent, primarily within sales, marketing, compliance, strategy and planning, finance and accounting roles. And we really don’t take the methodology of posting and praying. We’ll post jobs from time to time, but quite honestly, 90% of what we’re working on, we don’t post. We go through our network of individuals that we have relationships with. We’re firm believers in having strong relationships, not only with our candidates, but our clients, as well.

With the 15 plus years of experience that I’ve personally had in recruiting, I have candidates that I’ve placed two or three times throughout their career because they trust me, and they trust that when I bring them an opportunity, it’s for the right reasons. It’s not just simply a monetary increase. It’s something that’s going to progress their career or give them something else that they’ve been looking for in terms of their next step in their career. And from the client side, we really get to know both what they’re looking for in current state, as well as their future goals. Obviously, we’re looking for long-term commitments from candidates when they’re placed at our clients’ companies.

So in order to have that happen successfully, we need to learn as much as we can, not only about what the goals are today, but what you’re going to be doing two years from now, three years from now, so we can keep those candidates engaged and actively excited about the opportunities, and finding how those relationships can really collaborate and work well together, not only in skillset, but also personality. Those things that aren’t listed on a job description that are so important to realize, you know, if people are going to get along, want to have a beer with each other outside of work. All those things are really important and make people want to get up and go to work every day.

TG Branfalt: You had mentioned trust, and I think that that’s sort of very interesting that you bring that up. How do you build that trust in such a nascent industry?

Liz Gehl: What I’ve found is being somebody who understands the plant and understands the benefits … And I’m a user. I’m not somebody who’s coming in at the eleventh hour into the industry and saying, “Hey, I want to be a part of this.” I’ve been a part of the industry for many years, just underground. As a human resource professional, I had to be very, very careful because I am very, very passionate about the benefits of cannabis, but I couldn’t say that out loud when I worked in human resources, and I was giving people drug tests.

It’s been that type of transparency and being very, very open with both clients and candidates, and saying, “Hey, you’re not going to like everything that I tell you about this client or about this candidate, but when your relationship starts and everything works out and they’re hired on that first day, both parties know what to expect.” And I know that’s a very different approach than a lot of other recruitment companies take, but given the fact that we’re looking for long-term placements, I’m a firm believer in it’s a relationship. We all want to go into any relationship with eyes wide open and knowing what to expect as much as we possibly can.

Everybody has faults, whether you’re a company or whether you’re a candidate, so rather than focus on the faults, let’s look at them as opportunities, and how we can bring them into the conversation and really focus on the positive aspects of both the company and the candidate, and then work through those areas of opportunity together so that we can have a successful outcome.

TG Branfalt: What was the transition like for you, going in? You have this HR background. You’re also obviously very passionate about cannabis. Can you sort of describe to me that transition from the suit-and-tie real world, I guess, to the cannabis industry, which while it’s still, obviously, a serious business, the culture‘s a little bit different, I reckon?

Liz Gehl: Well, you know, it was interesting, because I knew I was going out on my own to open up my own recruitment firm and had given several months’ notice to my employer, and at no fault of their own, there was a situation where we had hired somebody very, very talented, and the person knew that they were going to go in for a drug screen, and reached out, and said, you know, “I don’t want to waste your time. I just want to let you know I’m a medicinal cannabis user. I have insomnia, and I don’t believe in taking Ambien. I would rather take an edible before I go to bed, but I can guarantee you I’ll never be under the influence at work.” And said all the right things and shared information that they didn’t need to share, healthwise.

And when I went to legal counsel, they were adamant. We have a zero-tolerance policy. Doesn’t matter. We can’t have it. We’re a highly regulated industry. Sorry. We’re rescinding the job offer. Now, I’d had that happen several times throughout my career, but knowing that … Well, having a strong feeling that recreational legalization was coming very, very quickly to California, I just had this sinking feeling in my gut and couldn’t do it anymore. And I’ll never forget sitting in that meeting and thinking to myself, “Not only am I absolutely going out on my own to start my recruitment firm, but I need to make sure that people understand that very professional, successful individuals use cannabis.” I’m one of them. And instead of hiding, I’m going to start being very vocal about the fact that it’s an industry, just like anything else, and of course there is some pain points, but there was with alcohol, pre-Prohibition, as well, and we got through that, and we got through that with some very talented people.

So it’s more, again, just about the passion for recruiting and human resources, the passion for the cannabis industry, and really knowing that there’s more individuals like me, like people in my personal circle that I’ve had for 20 years that smoke cannabis and vape cannabis with me, that you can be successful and can be very driven and be a cannabis user, and you shouldn’t be judged for that. So that’s really what drove me to start Gehl Search Partners as a cannabis recruitment firm, along with the adult beverage side.

And the transition wasn’t easy. The first 10 months or so, a lot of alcohol companies actually told me they didn’t want to work with me because of my belief in association with the cannabis industry. Fast forward to now, and as we all know, there are a lot of alcohol companies that have now made the transition and are starting to make acquisitions and mergers and investments and all of a sudden, people want to hear what I have to say, which is great. But that was definitely a tough road. Those clients, some of them have come back around. Others haven’t, and that’s okay. I completely understand that, but it definitely was a tough road.

TG Branfalt: How much of what you do now has become sort of this, I don’t know … Advocate for normalization, if you will? It seems like you’ve done a lot of heavy lifting in terms of sort of ringing that normalization bell.

Liz Gehl: You know, I don’t mean to, but when I’m passionate about something, I just, I speak about it. I’m a very, very transparent person. I speak my mind, and I think that helps, right? With the trust side, too, to go back to your question prior. When somebody tells you exactly how they feel all the time, it’s probably easier to trust them because you always know what you’re going to get, and it’s the truth. Even in my human resources days, I say I wouldn’t speak up, but I did. Right? I would say, “Okay, guys. Let’s stop and think about this. We’re sending people home with half-open bottles of alcohol, but we can’t have them have a medicinal card so they can pour wine.” But I was one person in a huge company that’s highly regulated.

So again, I don’t fault that company or any others like them, but my hope is that with more education and more people like me and people coming out of other industries who have this strong interest in going to the cannabis industry, all of us together can really help change that stigma.

TG Branfalt: This is really fascinating stuff. I do want to switch gears a little bit and talk to you about what you look for. What qualities and qualifications do you look for in executive talent, and how have you adapted that eye for the cannabis space?

Liz Gehl: Sure. What I’ve found to be most successful for both the client and the candidate is when the candidate has a passion or a belief in the plant. You don’t necessarily have to be a consumer, but my joke is … It’s not really a joke. To every candidate who always says to me, “I’m not a consumer,” my response to them is, “Not yet.”

And the reason why I say that, obviously I’m very passionate, but the reason why I say that is people don’t understand that you don’t have to get high. You can use a salve. You can use a topical. There are so many things that can happen with this plant that are going to alleviate pain or whatever they’re going to do for you. I truly believe that you’re not yet. You’re not yet. You haven’t found whatever it is that’s your, the magic thing for you, so to speak. Finding people that are open-minded enough when I say things like that, they laugh, and say, “Yeah, you’re probably right,” versus “No, I will never.” If you’re not flexible, the cannabis industry probably isn’t for you because things change every day, and they’ll continue to change for quite a while as things continue to get fleshed out.

Belief in the plant in one form or another. Maybe they’ve had a family member who benefited from it. Maybe they’re passionate about what it can do for children when they’re having seizures. Whatever that is, that’s very important. Also, resilience, being able to pick yourself up and brush yourself off after coming across a challenge. As we all know, there’s consistent challenges in the cannabis industry, whether it’s at the state level or federally. There’s always going to be something. In the next couple of years at least, that’s going to be a challenge. So how have you taken on challenges in the past? Have you risen to the occasion or have you been pretty discouraged and given up?

And also, just on a cultural level, if there’s somebody who is looking for an incredible amount of structure, that’s also something that is a long conversation that we have with them. Not that there isn’t structure in the cannabis industry, but again, going back to things that are constantly changing. Structure changes when things are constantly evolving and changing, as well. So it’s great to have structure, but can you pivot on a dime and still produce results and still be a nice human being and still treat people with respect, rather than getting upset and impatient. And that’s kind of some of the core things we look for, but again, it really depends on the role itself.

And because we focus on mid-levels all the way up to the C-level talent, there’s also that professional acumen. And again, with the cannabis industry, that’s a professional acumen, but it’s also being able to break bread with people and understand that the cannabis culture is one that isn’t quick to trust. They want to make sure that you’re a genuine person, that you are who you say you are, that you’re not somebody coming into the industry right at this moment, hoping to make big bucks, right? Because many people haven’t made a ton of money in the industry. They’ve been doing it to help people. So those are some of the primary things we look for.

TG Branfalt: From which sector are you seeing the most demand? Is it sales? Is it finance? Who’s looking for what sort of the most right now?

Liz Gehl: Sales is definitely the area where we see the most growth and the most business and the most revenue generated. Right? I mean, if you have talented sales people, then obviously revenue and market share is going to increase. So many cannabis companies are not branded extremely well, so those relationships are still incredibly important, even though we’re recreational now. Those individuals that have relationships at dispensaries, or if they don’t, they know how to creatively go after them. Or looking into the CBD area, candidates who have called on health and wellness or C-stores, convenience stores. Those type of things are really attractive a lot of times in the cannabis space because of the distribution and logistics and so forth.

So sales is really kind of the hot area for our particular recruitment firm, and from the other side, the thing that’s really interesting, too, which I see as a great thing is I’ve talked a lot in other areas about the fact that the cannabis industry needs better branding. Very few times do we have a screaming product with screaming branding. We usually have one or the other. Or they’ll throw a celebrity on their licensing agreement, and that’s supposed to work magic. And sometimes it does. Right? But marketing is an area where, in my opinion, the cannabis industry really, really has a lot of room to grow, and so where I get excited is I can’t tell you the number of incredibly talented marketing people we have coming out of adult bev, pharma, tobacco, health care, that are just chomping at the bit to get into the cannabis industry.

And I think that’s fantastic because the cannabis industry is right on that trajectory of being ready and having the revenue to be able to do so. But I think it’s just a natural progression, right? Sales is what companies typically want to start with, and then go into marketing. My personal opinion, you need both. It’s hard to have good sales if your marketing isn’t great, but understanding that they need to build revenue and helping support clients and finding those candidates who have either backgrounds in cannabis already and have the relationships or are coming from another industry and are bringing in a skillset that’s going to be very fruitful for this particular client.

TG Branfalt: You mention how important sales and marketing are. Is there any sector that’s particularly overlooked when people start building their teams?

Liz Gehl: I think, you know, I’m not saying anything new here, but compliance. Compliance across the board is obviously incredibly important, but it’s not just in the manufacturing and the distribution. It also needs to carry over into the human resources side. Most of these companies are too small and don’t need a full-time human resources person. I see that, right? If you have under 15 employees, it really doesn’t make sense to have somebody full-time on payroll for HR. But having a compliance person who has that kind of lens, who’s looking at compliance across the entire organization, including human resources and hiring practices, and how you treat your employees, I think is overlooked, and I advise my clients many, many times. We help with hiring, and that sort of thing, but in terms of employment law, there needs to be a lot more attention paid to that, in my opinion.

TG Branfalt: Is it challenging for you and for firms, for companies, to find talented individuals that can wear these multiple hats? You’ve mentioned people who were in sales should also know a bit of marketing, and people who are in compliance should also know a bit of HR. Is this something that you see very frequently, and is it a challenge to find these individuals?

Liz Gehl: It is. Because so many people, it’s just a natural progression. You go down a career path, and you start doing well, and so, especially if you’ve worked with larger companies. Larger companies tend to put you on a path where you’re continuing to learn the same thing, just more senior level aspects of that particular role. People that have had multiple careers are a good fit in the cannabis industry because they can wear many hats. That’s where a lot of candidates are actually attracted to the cannabis industry is, where other companies are telling them, “Hey, I don’t know what your background is because you’ve done a little bit of everything, so I don’t know where to put you,” the cannabis companies are saying, “Heck, yes. That’s amazing. You’ve done a little bit of everything, and we need everything, so come on over.” Right?

So it’s really been nice to see in my career as a recruiter, so many times I had to turn people away because they had a varied background. Now I can reach out to them and say, “Hey, guess what? We have companies that are celebrating the fact that you have a varied background.”

TG Branfalt: You talk about varied background … And do you get a lot of sort of non-traditional people to fill these roles? You know, because so much of this industry for so long was illicit … I’m not saying, you know, do you get a bunch of felons and that sort of thing knocking on your door, but do you get people from sort of more non-traditional backgrounds to fill these roles because of what they did maybe when the market wasn’t so legal?

Liz Gehl: It’s interesting. We have candidates across the board who’ve been lifers in the industry to people who have never had any experience with cannabis, right? So our candidates run the entire gamut, but in terms of where we’re most successful and where our sweet spot tends to be is, a lot of times, companies are looking to my firm to bring in talent who can bring in some of that corporate experience, or bring in some really screaming consumer packaged goods training. There are a lot of consumer packaged goods and adult beverage companies out there that have world-renowned training, and now, these cannabis companies are able to attract that talent.

I’ve heard this several times. “Liz, we’ll teach them cannabis. We want them to teach us how to run a CPG company.” And I think that’s amazing, right? To really be able to look at cannabis as a consumer packaged good. It is. Right? It is. And to really bring it more to that consumer-facing forefront, in order to do that, a lot of companies see the need to bring in people that have done the same thing, whether it’s with alcohol or with toothpaste or with pharmaceuticals or whatever it is, cigarettes, right? And that’s typically the most attractive type of candidate because if you’re coming from a highly regulated industry already, most likely you’re not going to get as easily frustrated with the regulatory side of cannabis. You’re going to understand it, and you’re already going to be well-versed in being able to pivot very quickly on creating new ideas and new solutions when a law changes for no good reason and you have to still get product out to the masses.

TG Branfalt: It’s really, really interesting. Are there any common traits among executives that make the switch to the cannabis space?

Liz Gehl: People that are willing to take a calculated risk. We’ve come a long way, just even in the last 6 to 12 months, in terms of compensation packages in the cannabis industry. But banking is still an issue, right? So we don’t have huge compensation packages with 401(k), equity, life insurance. I mean, many companies do, but when you’re coming from pharma or adult bev, you’re going to have to give something up to become an employee in this incredibly exciting industry. So that’s one of the tough conversations we typically have early on, is what are you looking to accomplish in getting into the cannabis industry, to really make sure that we’re, again, making the match for the right reasons.

Once we determine, again, that they’re looking to get into the industry for a passion, a belief in wanting to remove the stigma, to bring the cannabis to the consumer in a different way … That’s really where we start the conversation, start looking at where they might be a match with our clients. Secondarily, after that, it really goes a bit more into their particular skillset, right? Accounting and finance … We have a lot of experience in accounting and finance, as well, and a lot of the regulatory side of accounting and finance is transferable over to cannabis, but there’s a lot of nuances in cannabis that are different.

So a lot of people in accounting and finance are kind of scratching their head and saying, “Okay, this is an interesting problem to have.” And wanting to help figure out how to create solutions, so again, being a solution-oriented person, being open-minded, being flexible, and being passionate about the benefits of cannabis are really the initial things we look for, and then a deeper dive into their actual skillset.

TG Branfalt: You mention risk and sort of explain what that risk is for a lot of folks that you come in contact with, that you’re potentially recruiting. What kinds of questions do people ask about this? This is something that I’m very interested in, and sort of from your perspective, what questions do you get a lot by people who are dipping their toes in considering getting into the cannabis industry? When it comes to this risk specifically?

Liz Gehl: I don’t know about questions, specifically, but the thing I always find really, really interesting is a lot of people will say, “Oh, absolutely. I’m a risk-taker, and I want to get into the industry, and I’m absolutely willing to take a risk, but I’m not going to go back on my compensation, but I want equity.” And that one always cracks me up, because it’s like, well, companies don’t give equity just because. They give equity because you’re taking a risk and you’re one of the first umpteen employees, and you’re helping build the company out.

So I think that’s probably the biggest obstacle and issue is candidates seem to think that this is an easy way to get rich quick, and that every single cannabis company out there is offering equity, and they’re offering equity on top of the consumer packaged goods salary you currently have today, which is just not … It’s not logical, and it’s not realistic. So I think a lot of conversations end after that, when they realize, okay, I’m going to have to take a step back in one form or another on my compensation in order to gain equity, or I may not gain equity, but I’ll have the same compensation package. That’s been the primary risk for them.

And then, it varies, again. Cannabis companies are all over the board now, where many of them can offer benefits, can offer strong bonus programs and things like that. So that’s been significantly better, just in the last 6 months.

TG Branfalt: What advice do you have for these mid-level to C-level executives that are interested in entering the cannabis space that might be listening today?

Liz Gehl: My advice would be that the industry absolutely is hungry for talent and capabilities, but at the same time, there’s an ultimate respect for the individuals who have built these companies, have taken the extreme risk to operate companies in an environment which wasn’t federally legal or isn’t federally legal and many times wasn’t legal at the state level. And they’ve gone through an extreme amount of hard work and financing and raising capital in order to have these companies. So as much as I absolutely love bringing in individuals from outside industries into the cannabis industry, I also want to make sure that those individuals understand that we really do need to pay homage to these people. They’ve put their livelihoods at risk so that the rest of us can have cannabis as a consumer product.

So having that respect early on in the conversations with these individuals. You know, the owners of these companies, the founders of these companies, and really understanding where they’re coming from, in addition to selling yourself and how your past experience and your education is going to be good for their organization, having that respect at the same time. And I think that’s what I hear a lot of times from my clients is sometimes they get turned off from people outside of the industry because people come in as a, this is how things need to be done. And it’s hard to come in that way when you don’t have any professional experience or maybe even any personal experience in the industry.

So again, going back to something I said earlier, having that mutual respect and making sure we can build that trust between client and candidate so that there’s a mutually respectful relationship throughout the entire process. But it starts with us, very early on, with candidates. If candidates are wanting to come in and run the show at a cannabis company, you’ve had no experience in the cannabis industry, that’s going to be a tough sell.

TG Branfalt: And so you’d said that some companies might be a little hesitant about bringing in people outside the space. What advice do you have for companies who are looking for this executive high-level talent?

Liz Gehl: I think they should be more open-minded, and most of them are. But they should be more open-minded to people coming out of this space, out of the industry. There’s kind of an old saying that a lot of recruiters know and share with their hiring managers. You don’t want an entire company or an entire team of people just like you. If you’ve got an entire team, an entire company of people just like you, how are you going to come up with new ideas? How are you going to be innovative? How are you going to have one leg up on the competition? So bringing in people from various industries who are going to be able to think outside the box and maybe come up with some ideas that seem incredibly crazy at the time but are doable … That’s where I’ve seen the most success.

Many times, clients will come to us and say, nope, they absolutely have to come out of this space. And 9 times out of 10, after a few conversations and showing them various candidates, we’re able to get them to understand that, hey, dependent on the individual, people bring different skillsets and different qualities to the role, so it’s really about the individual and their background and what they can provide the company, and what the company can provide them versus them just coming out of one particular sector or industry, is going to prove to be much more successful, at least from what I’ve seen in my 15 years of experience in working with companies throughout retail, CPG, again, you know, pharma, adult bev, and so forth.

TG Branfalt: Well, Liz, this has been a really, really enlightening conversation. I’m really happy that you could take the time to join me on the show, and definitely want to keep in touch with you as this industry grows and just see what trends have sort of emerged from a recruitment standpoint. I really thank you for your time.

Liz Gehl: Absolutely, TG. Thank you, and thank you so much, and happy to keep in touch, and excited, as well, to see how things progress.

TG Branfalt: Yeah, and that was Liz Gehl. Thank you so much, Liz.

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 Media House. I’ve been your host, TG Branfalt.

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Leafly and Cova Partner to Bring Omnichannel Experience to Cannabis Industry

1/29/2019

by Featured Announcement

VANCOUVER, British Columbia and DENVER, January 24th, 2019 — Retail cannabis point-of-sale software company Cova today announced a partnership with Leafly to provide accurate, real-time pricing and product availability updates to cannabis retailers’ Leafly online capabilities. With this integration, Cova will continue to provide streamlined operations and superior customer experience to its growing list of clients in the U.S. and Canada.

“Today’s consumers are not only more sophisticated than ever, but their expectations are high too,” said Gary Cohen, CEO of Cova. “To compete and meet a cannabis buyer’s needs, it’s critical that retail store owners provide customers with multiple ways to shop and accurate inventory availability.

We have already armed our retail clients with omnichannel features, such as “Reserve Online, Pick Up In-Store”, and “Express Checkout” but with an integration partnership with Leafly we can now automatically sync online menus, creating a complete cannabis retail omnichannel experience.”

By partnering with Leafly, in addition to providing accurate, real-time updates, Cova can help clients eliminate the need for manual menu updates, expand their retail sales channel and increase consumer foot traffic.

“Cova is one of the top POS providers and shares Leafly’s commitment to safety and compliance,” said Paul Barry, Chief Technology Officer at Leafly. “Legal purchasing channels, like stores in Cova’s client network, make it easy to ensure that quality and safety standards are met so we can promote responsible cannabis consumption.”

Integration with Leafly is the first partnership announced by Cova since the software company secured $8 million in initial funding to continue to expand its POS capabilities and features. Retailers and dispensary owners who currently use Cova, now have access to Leafly and may automatically sync inventory and pricing.

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About Cova

Cova is the leading POS solution in the cannabis industry. The Cova team’s relentless pursuit of creating the industry’s first lovable POS has led to solutions that help retailers simplify compliance, reduce operational costs, and increase revenue through automated compliance, inventory management, mobile reporting dashboards, and Cova’s Express Checkout app. With a growing network of cannabis industry partners including Leafly, Baker, I Heart Jane, greenRush, springbig, Enlighten, GeekTek, and Budvue, Cova’s seamless tech ecosystem gives retailers access to the best tools available to run their business. Cova’s offices are located in Denver, CO, Vancouver, BC, and Regina, SK. Learn more at www.covasoftware.com.

About Leafly

As the world’s leading cannabis information resource, Leafly’s mission is to help patients and consumers make informed choices about cannabis and to empower cannabis businesses to attract and retain loyal customers through advertising and technology services. Learn more at www.leafly.com and download the five-star rated Leafly mobile app through Apple’s App Store or Google Play. Visit Leafly.com, Leafly Canada at Leafly.ca, Leafly Germany at Leafly.de, Leafly in Spanish at Leafly.es, and Leafly in French at Fr.Leafly.ca.

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Sweet Leaf Dispensary Owners Sentenced to Prison for Illegal Distribution

1/29/2019

The owners of the former dispensary chain Sweet Leaf — which was subjected to a long dispute with Colorado regulators over violations regarding per-customer cannabis purchasing limits — have been sentenced to a year in prison, The Denver Post reports.

Sweet Leaf — based in Denver, Colorado — was accused of “looping” or allowing customers to return several times per day to buy the maximum allowed amount, which is a violation of the law. It’s assumed that cannabis purchased using this method was diverted to the illicit market.

The sentencing is the final action in a long series of monetary judgements and legal drama.

“I think this was obviously a first case in Colorado. I think it was the first in the nation where a state prosecution office went after a licensed marijuana company. We did not see this scope with anybody else.” — Kenneth Boyd, lead prosecutor, via The Denver Post

Sweet Leaf owners Christian Johnson, Matthew Aiken, and Anthony Sauro all plead guilty to charges of violating the Colorado Organized Crime Act, illegally selling and distributing cannabis and failure to file or pay taxes.

The plea deal that encouraged the owners to plead guilty stipulated that their sentence would be one year in prison, then one year of parole, then one year of probation.

“The vast majority of Denver’s marijuana industry businesses are reputable and responsible and strive to obey our marijuana laws. However, Sweet Leaf is an exception. My office will prosecute those who do not comply with our marijuana laws,” said Denver District Attorney Beth McCann.

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Thailand Invalidates All Cannabis Patents in Response to Public Outcry

1/29/2019

Thailand’s Prime Minister Prayuth Chan-ocha has issued a decree ordering the Department of Intellectual Property to invalidate all patents for any molecule derived from cannabis, according to an ABC News report.

GW Pharmaceuticals and Otsuka Pharmaceutical had applied for patents earlier this month. Despite the fact that patents on natural organisms are explicitly prohibited, the applications were not rejected outright and instead were given a “patent pending” status.

Prime Minister Chan-ocha issued the decree due to concerns over foreign interests using patents to monopolize the Thai marketplace. According to the decree, and previous readings of the law, patents for cannabis products are already in violation of Thai law, which stipulates that plants cannot be patented.

The decree will hold sway on the issue of cannabis patents until such time as the Thai Parliament writes a complete law regulating medical cannabis, which was legalized at the beginning of the year in Thailand. The legalization bill still needs to be signed by King Maha Vajiralongkorn before the next stage of the process can begin.

The government of Thailand, which is a military dictatorship that took power in 2014, allows for sweeping decrees like the one invalidating all cannabis patents.

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AG Nominee Puts ‘No Cannabis Enforcement’ Pledge In Writing

1/29/2019

William Barr, Trump’s nominee for attorney general who previously said he wouldn’t “go after” cannabis companies during his confirmation hearings, has agreed to put that pledge into writing, according to a story by Tom Angell of Forbes.

Barr has put his statement into writing following requests from several senators. “As discussed at my hearing, I do not intend to go after parties who have complied with state law in reliance on the Cole Memorandum,” Barr wrote in his statement.

Barr is not, however, intending to re-instate the Cole Memo, which was a Justice Department memo rescinded by Jeff Sessions that had prevented the federal prosecution of state-legal cannabis industries.

“I have not closely considered or determined whether further administrative guidance would be appropriate following the Cole Memorandum and the January 2018 memorandum from Attorney General Sessions, or what such guidance might look like. If confirmed, I will give the matter careful consideration.” — William Barr responding to Sen. Cory Booker (D-NJ), via Forbes

While he is not in favor of legalizing cannabis federally, Barr made statements about expanding the federal cannabis research program. “I support the expansion of marijuana manufacturers for scientific research consistent with law. If confirmed, I will review the matter and take appropriate steps,” responded Barr to Sen. Charles Grassley (R-IA).

While Barr may not be perfect for the cannabis industry, he’s a huge step up over Sessions. According to Don Murphy, Director of Federal Policies for the Marijuana Policy Project, “William Barr didn’t just wave the white flag, he signed a peace agreement.”

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California’s New Stringent Testing Discovers Lead in Vape Cartridges

1/28/2019

Regulators in California are rejecting a “concerning” number of cannabis oil vape cartridges for lead contamination, according to a Leafly report.

California implemented new, more stringent testing standards starting January 1. Under the new rules, lead limits were lowered to 0.5 parts per million. That’s the strictest standard in the world — Washington’s current limit, for instance, is 1.2 parts per million.

Experts say that lead is a “boogeyman metal.” There is no level of lead that is considered safe, which is why there has been such a strong movement over the last 50 years to remove lead from everything from paint to gasoline.

The majority of vape cartridges are manufactured in China. Lead is added to the other metals used in manufacturing the cartridges in order to make the metal easier to mold. A small bit of added lead can save a manufacturer millions when you consider the scale at which these cartridges are manufactured.

Cannabis oils, however, are what has started failing regulator testing in California. It’s speculated that because cannabis oil is acidic, it’s leaching the lead from the metal of the vape cartridge over time. Once dissolved in the cannabis oil, lead might be vaporized along with the same oil that people are inhaling.

While only about 0.5% of the cartridges since January 1 are failing, many are passing at 0.4 or 0.3 parts per million, just below the legal limit. And the ones that do fail are often doing so at 0.6 or 0.7 parts per million — levels that would be considered safe in Washington. And that’s in the highest quality cartridges made in China.

Vape cartridges used in the illicit market are often the lowest quality, or cheapest, cartridges. It’s unknown what level of contamination might be in those, as unregulated products are not tested.

Many producers are now demanding completely lead-free cartridges. Implementing manufacturing changes, however, as well as clearing previous stock still sitting on shelves, means that there will be no obvious changes until at least later this winter.

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Study: Liberal State Young People Consume More Cannabis, Have Lower Dependency

1/28/2019

Researchers have found that young people in liberal states consume more cannabis but have lower rates of cannabis dependency compared to those in conservative states, according to The Verge.

The study was conducted by Columbia University’s School of Public Health and published in the International Journal of Drug Policy. Researchers did an analysis of data from the National Survey on Drug Use and Health and cross-referenced that data with measurements of a state’s political climate such as gun policy, stance on government assistance programs, abortion, and other political leanings.

The findings were shown to be true whether or not a state had any sort of legal cannabis for people in the 18-25 age bracket. Across the nation, cannabis consumption is rising and rates of “cannabis use disorder” are decreasing; in liberal states, however, the rates of consumption are up even more and the rates of cannabis use disorder are also up more, compared to states ranked more conservative.

Researchers aren’t sure why this pattern is happening and the results are a purely statistical correlation at this time. It’s believed that the differences aren’t attributed to any one political stance or policy, but rather the entire political climate in the state, which can involve many factors.

Study author Morgan Philbin said the next goal is to isolate which policies seem to be making the most impact and creating these outcomes.

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Alaska Appoints Prohibitionist to Marijuana Control Board

1/28/2019

Alaska Gov. Mike Dunleavy (R) has appointed two new regulators to the state Marijuana Control Board, both of whom have shown anti-cannabis leanings and one of which campaigned extensively against cannabis legalization, according to a KTOO report.

Advocates were most concerned by the replacement of Marijuana Control Board Vice Chairman Brandon Emmett, who said he was still getting over the shock. “They said that the Governor thanked me for my service, but that they were going in another direction,” said Emmett.

Emmett will be replaced by long-time anti-cannabis crusader Vivian Stiver. Stiver will take over Emmett’s position on the Board starting next month.

“I see now what the governor means when he said that they were going in another direction, appointing an abject prohibitionist. That is definitely a complete different direction.” — Brandon Emmett, via KTOO

Stiver is a former Fairbanks city council member. She held leadership positions in several anti-cannabis organizations during the run-up to legalizing in Alaska, as well as conducted two different campaigns to ban sales of legal cannabis in Fairbanks and the North Star Borough of Fairbanks.

The other appointee is former Alaska Wildlife Trooper Chris Jaime, who has spoken out against the recent passage of on-site consumption in Alaska.

The concerns are that the two new appointees to the board will slow the development of Alaska’s legal cannabis industry, especially with regard to on-site consumption.

The appointees are still pending confirmation by the legislature in February.

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Colorado Advances Bill to Add Autism as Medical Cannabis Condition

1/25/2019

A bill that would add autism as a qualifying condition for medical cannabis in Colorado has managed to pass committee approval and move to the state House floor for voting, The Denver Post reports.

A similar bill that hoped to add autism as a qualifying condition was vetoed last year by former Gov. John Hickenlooper.

The new bill passed the Colorado House of Representatives Health Committee with a 10-1 vote. The only no vote came from state Rep. Yadira Caraveo, vice chair of the committee, who said that her concerns were that “these decisions are being driven outside the medical home.”

Melissa Atchley, who attended the committee hearing, said she’s not concerned about the lack of medical evidence for cannabis’ effects on autism. “As a mom, I want my child to stop beating his head against a wall,” Atchley said.

The bill now heads to the House floor for a vote.

Colorado has an ongoing study investigating the effects of medical cannabis on autism, established following former Gov. Hickenlooper’s veto.

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