The Emerald Cup Returns This Weekend

The nation’s most anticipated cannabis event takes place this weekend and cannabis family are making their way to California from all over the world to participate.

The 2018 Emerald Cup — the event’s 15th annual occurrence — is coming to the Sonoma County Fairgrounds on December 15-16 and will be California‘s first event where all adults can smoke and purchase cannabis, instead of just state-authorized medical patients.

The Emerald Cup is the most respected organic, sun-grown cannabis competition in the world and that reputation brings serious cannabis enthusiasts to Northern California, year after year. People come for the friendship, culture, and community — and to see and taste some amazing cannabis flowers, extracts, and other products.

This year’s music lineup looks excellent, with artists Gogol Bordello, Big Gigantic, Antibalas, CHALI 2NA, Lyrics Born, STS9, Mike Love, Margo Price, Nattali Rize, Cut Chemist, Dirty Dozen Brass Band, Funky Meters, Ardalan, Xiuhtezcatl, and many more taking to the stage.

However, while the music venue is always filled with smiles and great jams, we are looking forward even more to the speakers because when so many elite cannabis growers, researchers, and extractors are all at the same place, it makes for incredible discussion. The Emerald Cup’s teaching panels always bring a mix of talent that you will find nowhere else.

Last year’s panels, which were packed with enthusiastic attendees and people taking notes, were a huge success. Speakers this year include: Jeff Lowenfels, Dr. Ethan Russo, Martin Lee, Dr. Sue Sisley, Dominic Corva, Seth Crawford, Reggie Gaudino, Gred Gerdeman, Kevin Jodrey, Rick Doblin, Nick and Elizabeth Mahmood, Casey O’Neil, Beth Schecter, Mean Gene from Mendocino, and many, many more.

The selection of vendors is outstanding, as well. You will find cutting-edge cannabis products, be able to speak to their inventors, and perhaps even find ideas and inspiration for starting your own business!

Like last year, Ganjapreneur will be there to bring you great stories, incredible interviews, and select video coverage of the event. Get your tickets now at TheEmeraldCup.com.

https://youtu.be/wAwvnyxuhvA

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Montreal, Quebec

Montreal to Spend $1.3 Million Combating Illicit Cannabis

Montreal, Quebec has set aside $1.3 million in funding to combat the local illicit cannabis market, according to the Montreal Gazette.

Montreal’s new spending will fund a 26-officer police squad with the mandate to control and eliminate the cannabis illicit market. Two members of the squad will be civilians.

The province of Quebec is already known for having some of the most restrictive cannabis laws in Canada.

Recently, officials there launched an effort to raise the minimum age for cannabis consumption to 21 and ban public consumption; in other provinces, public consumption is often legal and the age for purchase is 18 or 19. Home cultivation is also illegal in Quebec, meaning that the province and it’s most populous city, Montreal, are likely to have the most tightly controlled cannabis markets in Canada.

A similar task force to fight the illicit tobacco market sparked a decline in contraband tobacco sales from 30% to 12% over the course of nine years.

There has been push back from around Canada, including from Prime Minister Justin Trudeau, over Quebec‘s cannabis laws. Many believe that the province’s harsh stance on cannabis will result in a thriving black market instead of a clean transition to a legal cannabis framework, as the legislation was intended.

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Gas Station

Gas Station, Cannabis Dispensary Hybrid Opens in Portland, Maine

A medical cannabis dispensary, convenience store, and gas station hybrid opened for business in Portland, Maine on Thursday, The Portland Press-Herald reports.

Patients with a medical card in Maine can now refuel their cars and their stashes. Atlantic Farms Gas N’ Grass on Warren Avenue in Portland is considered to be the first business of its kind in the state.

The gas station offers the cheapest gas in the area; the dispensary will sell gummies, tinctures, and flower. Owners converted a walk-in cooler inside the traditional gas station convenience store to be the dispensary’s storefront.

“We offer a rotating menu of the best cannabis products from the best caregivers in Maine with the convenience of, well, a convenience store.” — Jackson McLeod, cannabis caregiver and dispensary co-owner, via The Portland Press-Herald

The shop’s founding was made possible by recent changes to Maine’s nearly 20 year-old medical cannabis laws. Previously quite strict, the laws were loosened so that cannabis caregivers can hire an employee and sell cannabis direct to the medical card-holding public.

Atlantic Farms Gas N’ Grass timed things perfectly. They received a certificate of occupancy and approval from state regulators just before Portland adopted a moratorium on new cannabis businesses in October, narrowly sneaking their approval in under the wire. Only eight businesses managed to get permits between the state rule change and the Portland moratorium.

McLeod and partners have been proactive about telling drivers they can’t consume cannabis and drive, going above and beyond state regulations. They don’t want their business shut down by the local municipality. Maine’s new cannabis rules and Portland’s local moratorium are still somewhat vague and legally untested.

Only a handful of businesses across all states with cannabis legalization have “gas-and-grass” business models. Two are known in Colorado, operated by the dispensary chain Native Roots. It remains unknown what, if any, legal challenges may await these businesses in the future — for now, they are at the forefront of cannabis entrepreneurship and normalization.

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Rick Thompson: Michigan’s Long, Winding Road to Cannabis Freedom

Rick Thompson is a cannabis advocate, citizen journalist, and organizer of the Michigan Cannabis Business Development Conferences. His efforts helped see Michigan’s 2018 cannabis legalization initiative to a successful finish last month.

Rick recently joined our podcast host TG Branfalt to discuss the 2018 elections and to give an insider’s look at the road map for Michigan’s inbound adult-use cannabis marketplace. In this episode, Rick shares experiences from the state’s unsuccessful 2012 and 2016 legalization attempts, talks about the state of Michigan’s current medical cannabis system, and offers advice for activists in other states who are considering tackling a legalization voter initiative of their own.

You can tune into their interview via the media player below or scroll further down to read a full transcript of this Ganjapreneur.com podcast episode!


Listen to the podcast:


Read the transcript:

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TG Branfalt: Hey there, I’m your host TG Branfalt and you are 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 my guest is Rick Thompson. He’s a board member of Michigan NORML and MI Legalize. He’s the owner of Michigan Cannabis Business Development Group. He’s an activist and a journalist, a guy who wears many hats. Love having him on my show. How are you doing this afternoon, Rick?

Rick Thompson: Tim, I’m doing great. Thank you for having me on the Ganjapreneur.com episode.

TG Branfalt: I’m super stoked. Before we get into the recent success at the polls, I want to talk to you about 2016. What happened in 2016, why did that initiative not end up even going to voters, and tell me what you learned from that experience?

Rick Thompson: In 2016, the MI Legalize tried to put forth a ballot proposal to put legalization on the ballot. We required 250000 signatures. We collected enough signatures to qualify for the ballot, but we didn’t do it within a 180-day window that the Michigan law states that we have to use. Now there was a legal interpretation that allowed us to believe we could possibly prevail even outside that 180-day window, but during our petition drive, the legislature took it upon themselves to close that window and change the legislation. And as a result, the Supreme Court of the State of Michigan did not honor our request to get on the ballot.

So that’s what fueled our desire to get the legalization on the ballot in 2018.

TG Branfalt: And so tell me about the 2018 experience. From collecting signatures to actually getting it on the ballot to the success, walk me through your experience with that, from being a guy on the ground.

Rick Thompson: Well I’ve been on the Board of Directors of MI Legalize 2016 and then prior to that it was one of the principals of the Repeal Today movement, which tried to legalize marijuana in 2012. So in 2016 when we realized that we were not going to make the ballot, we started looking for additional sponsors in order to help us out. Marijuana Policy Project and Drug Policy Alliance expressed some interest in coming to Michigan to do a legalization initiative, but they wanted to wait until 2020.

We were able to convince them that 2018 was the right time for this movement in our particular state. We had the infrastructure, we had momentum going. And it was the synergy between the national partners and the local on-the-ground activists that was able to make our committee to regulate marijuana like alcohol group successful in our effort to put that legalization proposal on the ballot. But we had to learn by making some mistakes in 2016 before we could be successful with our ’18 campaign.

TG Branfalt: So that ballot initiative passed 56%. I mean, it was a borderline slam dunk. And recently Senate Majority Leader Arlan Meekhof introduced a measure that would get rid of the home growing provisions in that voter approved measure. In your opinion, what are the chances that this passes?

Rick Thompson: I don’t think that the Arlan Meekhof bill will pass in its current form. It’s about 75 pages long. It contains a ton of changes to the legalization proposal before the legalization proposals even realized. It doesn’t have 100% Republican support which it would need, and it doesn’t have any Democratic support. Because the legalization proposal is a citizen-directed initiative, it requires a three quarters super majority vote in both the House and the Senate in order to make amendments to it. It doesn’t seem like in its current form, the Meekhof bill will be able to get that.

However, in the lame duck session of legislature, compromises are made, changes are made that are subtle or more abrupt and deals get struck in the wee hours of the morning. So we’re never certain until the legislature dismisses for the year that they’re not going to be successful doing something.

TG Branfalt: So earlier you had mentioned the coalitions and relationships that you had built in 2018. What is the sort of overall importance of building these relationships? And how do you overcome the different opinions when everybody has the same end goal?

Rick Thompson: Well, what we saw is that both sides, the national partners and the in state activist network were absolutely dependent upon each other in order to be successful. With MI Legalize we’d just seen in 2016 that our in state efforts by themselves did not get the job done. But we also saw in national races sometimes national organizations that do not get the support of the local community in the states that are trying to get legislation passed, and that turned out to be not successful too.

So we worked from a position of dependence on each other. We also eliminated people that were not willing to our capable of working in group scenarios with other folks. And then moved forward from that point. We had a lot of conversations and we represented a lot of different viewpoints in this issue with a smaller group of people that drafted the actual language of the proposal. There were some professionals, some folks representing interest groups, and then also a group of activists that were there as well.

And that’s one of the reasons why we have a proposal that has the most liberal possession limits in the United States, the most liberal cultivation limits in the United States on a personal level. Because we maintained involved in that process of drafting, and it also allowed us to retain our support base as a state-based community. Because we didn’t betray the people that put their trust in us to represent them properly in those negotiations.

TG Branfalt: You mentioned the activists that played a role in the 2018 success. You yourself are an activist, but sort of you’re also a citizen journalist with your Social Revolution blog, something that I as a journalist have used to find stories in Michigan. So when did you decide to take on that citizen journalist role?

Rick Thompson: Well, in 2009 when we launched the Michigan Medical Marijuana Magazine, that was really the linchpin to the start of my movement into journalism. I’d never really done any journalism prior to that. But we really recognized that patients were not getting any information and that people were accidentally becoming criminals even though they believed that they were following the letter of the law. So we started with the purist of intent. In fact, to be honest with you, the first magazine really was never a money maker. We took a lot of hits as far as financially to put that out there. But it was worth every issue and episode.

So after that was no longer successful for a variety of reasons, I transferred over into Internet journalism to maintain that still concept that we have to let people know what’s going on, and that an informed citizenry is a better thing for everybody. And that’s continued on through my several different incarnations in Internet journalism. I also try and keep that message going, too, when I do my public appearances. I’m frequently an MC or a speaker at a lot of the functions we have here in the state. And I try to keep that spirit of community independence and interdependence alive every time I talk to our people.

TG Branfalt: So when we had spoken before you had mentioned to me that you didn’t really play much of a role in the passage of the medical cannabis laws ten years ago. And since then you’ve really become one of the foremost advocates in the state. Your profile’s pretty high. How’d you end up ten years later going from someone who wasn’t involved to someone who is a key player in cannabis policy in the state?

Rick Thompson: I think when we look at citizen journalism, citizen journalism is incredibly admirable but very low on the pay scale. So in order to support my citizen journalism, I did some things that were business related in the cannabis industry. And because I kept all of my balls that were in the air were all in the cannabis sphere, my focus was exclusively on this industry. Not everybody gets that opportunity, but I was able to take that and translate that into testimony at the House, testimony at the Senate. I was recognized by High Times at their international business conference in Washington, D.C. by giving a presentation on the emerging markets in the Midwest.

By staying true to my purpose and by completely devoting everything I had, I was able to remain in this game. If I had a nine to five job like most other people, I wouldn’t have been nearly as effective in architecting change, and in helping other people do the same.

TG Branfalt: So you mentioned citizen journalism isn’t a moneymaker. Publishing, as most people will tell you, doesn’t make you a lot of money. But you started the Michigan Cannabis Business Development Group. Tell me about that and what you do with that.

Rick Thompson: Michigan Cannabis Business Development Group is an organization, we do small business conferences across the state. I target university facilities or hotels, larger hotels. We have done eight so far since 2015 and this weekend on Sunday will be our ninth conference. That’ll be at the Lansing Radisson Hotel at the Grand Ballroom. This is my third year in a row doing a small business conference for cannabis entrepreneurs at that particular location in December. We’ve also been to Detroit, Ann Arbor, Bay City, Flint, Traverse City. We try to spread the information out around as much of the state as possible because there are a lot of people with questions that can’t travel to get someone to answer them. So we try our very best to bring our show and all of the information that we provide out to the places that are otherwise kind of ignored by traditional speaking engagements or traditional conference series.

TG Branfalt: You mentioned that that’s aimed at small businesses. I know whenever legalization is discussed or passed there’s always this question about big business coming in, swooping in and wiping out all the existing businesses and growers. Is that something’s that’s concerning to you guys out in Michigan?

Rick Thompson: That’s very much a concern. In our medical marijuana business program which is the only business program that we have in Michigan right now, since we won’t see legalized cannabis businesses until at least 2020, in our business program right now for the medical community we have three different levels of growers. A 500 plant grow, a 1000 plant grow and a 1500 plant grow. And if you’ve got a 1500 plant license you can stack them, meaning that you can grow 1500, 3000, 4500, 6000, the sky’s the limit essentially. The first award of a license for a cultivator in Michigan was for a four license stacked facility, giving one particular person 6000 plants of power.

Now that’s a lot of juice to give one particular company. And it’s also a lot of risk for our industry as well. If something were to happen, for example a bankruptcy or some kind of a business-related issue where those 6000 plants automatically had to stop and go offline, that would represent a significant interruption in the supply chain in Michigan. So it’s always been my belief that having more grow operations around the state would be a better way to insulate the patient population from those fluctuations that we’ve seen happen in other states, like Oregon and Washington. So we’re very concerned that having a corporate influence could dominate the market and bring with it some of the risks for catastrophic failure.

But also we’re very concerned about the medical quality too. You can see where a bean counter, someone who’s a financier, could look at a square foot space in a grow operation and decide that they could only allocate that space to a plant that yields eight pounds or more. But we know that some of the most medicinal plants are some of the sativas. And they oftentimes don’t yield as much as some of the big fat indicas do. So if you were making decisions from a corporate advantage level as opposed to what’s best for your patients, then that doesn’t advantage our community whatsoever. And we’re very concerned about that type of thing happening.

TG Branfalt: So what comes next in the legalization process? This is out of the voter’s hand, this is out of the advocate’s hands. What’s coming next? You said that non-patients won’t start being able to buy cannabis until about 2020?

Rick Thompson: Right. Now personal freedoms, which are the 12 plants to grow per household, and the 2.5 ounces that you can have on yourself, those will begin on December 6. But the state of Michigan has a 12-month period in which they can promulgate rules that will govern the licensing of legalization businesses. So that would put the ETA date on legalization businesses at sometime in 2020. I will say that we have elected just this last November a very favorable governor and a very favorable attorney general, both of whom spoke at the Hash Bash in Ann Arbor this year, the first time ever that we’ve had this.

So we have the most progressive group of people in charge that Michigan’s ever experienced as far as I’m concerned. So when we talk about what the possibilities are, we can maybe accelerate the process. They have 12 months to make rules, but maybe they only take six because they’re incentivized by the governor to get them done more quickly. So we could see it faster, but probably not. But what 2019 represents though, is a very big step forward in the business community in Michigan regarding cannabis. The MMFLA, which is the Medical Marijuana Facilities Licensing Act, that’s the business wing of the medical marijuana program. And they’ve been licensing businesses as fast as they can in 2018. And in 2019 most of those businesses will come online and additional businesses will be licensed. So we’ll see spreading across the state a fully fleshed out business community serving the patients that we have, which are about 300,000 registered patients in Michigan right now.

So 2019 will be exciting for that. But then also when 2020 comes around, those MMFLA licensed facilities, those people that are already providing medical cannabis, those will be the first facilities that receive permission to sell legalized cannabis too. So we are architected the legalization bill to build upon the successes in the medical program. So instead of reinventing the wheel and creating a whole brand new separate infrastructure, we elected to use the same infrastructure. We just also elected to use smarter rules to run those businesses though.

TG Branfalt: And I know that in the medical program out there that some communities have opted out, they don’t allow cannabis businesses to operate. What’s the word on the street in terms of communities now? You had mentioned that you’re a little bit galvanized right now from the incoming governor and the incoming attorney general. Do you foresee a lot of local communities opting out of the recreational side of this?

Rick Thompson: I think that the concept of opting out is actually not included in the legalization proposal itself, nor has there been any state department requiring communities to opt out. So it is a phenomenon that’s happening that’s kind of inspired by the anti-legalization proponents, primarily Healthy & Productive Michigan, which is an in-state arm funded almost exclusively by Smart Approaches to Marijuana. So we’re seeing a lot of communities make declarations that were already saying no prior to legalization.

But the state of Michigan maintains a database that has about 110 different communities in the state that have already said yes to medical marijuana businesses in their locations. And so that 110 communities will be the basis upon which legalization will jump off. But it’s my understanding or at least my belief that we’ll probably see a lot more communities saying yes to medical and legalized businesses in the upcoming year, because they’re going to see the advantage it brings to their neighbor communities. Nobody wants to be first, but everybody wants to get money. So when the guys who go first start to show a profit, everybody else will line up in order to get into that trough like little piggies.

TG Branfalt: Do you think that legalization in Canada helped you guys this year, being as though you can throw a rock from Detroit to Canada?

Rick Thompson: Well, and it is true. In fact, parts of Detroit are actually north of parts of Canada in Michigan. Most people don’t know that. We are very, very close to Canada right here, but I don’t believe that that had a big influence and I’ll tell you why. We’ve been polling at about 57 to 60%, pretty much regularly throughout 2018. So when Canada legalized cannabis it didn’t really affect our poll numbers any, so I can’t imagine that if affected that. Here’s the other thing too though, Tim, is that our poll numbers indicated that there were only about four or five percent of Michiganders who were undecided on the issue of cannabis. So these people had already made up their minds long before the advertising campaigns or the town halls and all of the negativity that we saw brought here, and all the falsehoods that were perpetrated through the media.

Michigan was ready for it. They had already decided. Now that’s something that’s a privilege that a lot of other states that are going to explore medical or legalized cannabis are not going to enjoy. As I mentioned, we had that 2012 effort to legalize, and then we had the 2016 effort to legalize prior to our 2018 effort. And it was only because of those recent media events, the legalization efforts, that we accomplished that big in-state knowledge base. A lot of other places don’t have that. So it’ll be more of a difficult struggle for them.

TG Branfalt: Well speaking of other states, what does Michigan’s legalization, strong legalization, mean for the rest of the Midwest. I mean, Wisconsin has one of the worst medical programs in the country. Ohio famously chose not to legalize a few years ago, and that was for more the bill reasons. But what do you think it means for the rest of the region?

Rick Thompson: Well what we’ve said all along is that Michigan’s going to set a new standard for the way that America legalizes cannabis. We have the most generous possession limits, we have the most generous cultivation limits. And we’ve kept the taxes lower than any other legalized state in the United States. Our tax is only ten percent on cannabis. And that was done intentionally in order to stifle the black market and to encourage people to come into the rec market. But what it means nationally is that there’s a new bar for the next state to raise. Instead of 12 plants per house, maybe they’ll say 20 plants per household. Instead of 2.5 ounces maybe they’ll say no possession limit. As long as you’re not selling, you can have whatever you got. So it’s possible that by establishing such a friendly law in Michigan that we’re going to raise the bar for all other states that come after us.

But it’s also an incentive for other Midwestern states to adopt more liberal laws. We saw, as you mentioned, Wisconsin’s got a terrible law. Illinois’ law started off not very good. They’ve made it difficult for patients to register and difficult for businesses to get open. And their program suffered because of it. And now we’re seeing them loosen up on those laws and it looks like maybe they’ll actually have a functioning medical system. Also note that the governor in Illinois seems to be extremely interested in getting legalization in his state too. And I think that has a lot to do with Michigan’s success.

We’re also seeing more common sense principles being brought about in Ohio’s system. I like what I see in Pennsylvania and New York. So Michigan is helping to be the lead dog. But this is really a sled chain of eight or nine of us, eight or nine states that are pushing towards the same common goal. We just happen to be in front right now. And being in front gives you a business advantage. I would love very much to see Detroit to become the intellectual hub of the cannabis industry in the Midwest. I’d like to see people like MedMen or other places come in and choose to set up shop in Michigan because of a friendly environment and pass over places like Chicago or Columbus or Indianapolis.

I would like to see Michigan have an opportunity to have a resurgence of industry that we haven’t seen since the takeoff of the automobile industry. And certainly we have enough experience and enough talent here in the state to make those dreams a reality.

TG Branfalt: You mentioned the automotive industry and GM just announced they were closing some plants. I guess I’m wondering whether or not you’ve heard interested business people saying hey, there’s an old car factory that has all of this square footage and we don’t have to really rebuild a new facility, just rehab these former car facilities. Is that something that you think could happen, or that you’re sort of already hearing rumblings about happening?

Rick Thompson: For certain types of facilities, that certainly may be advantageous. Most of the automobile facilities that you may be referring to are in urban environments and they would be ideal for things like cultivation centers. Big open spaces that you could individualize, build interior walls and set things aside, control your environment. But for transportation or for processing or for retail, probably not so ideal. So we have an opportunity to repurpose some of those facilities, and in fact we saw quite a few of those types of businesses and buildings emerge in Detroit while Detroit was being very permissive. Detroit has no longer become permissive and they’ve become quite difficult to work with, so we’re seeing a lot of those people that had success in ’15, ’16 and ’17 in the medical program with large scale cultivation, that was sort of a gray market thing, those people are being forced out now.

What we are seeing, though, across the state are provisioning centers, which is our term for dispensary, provisioning centers occupying places in towns that have been vacant and derelict for a long time. And we see those buildings being rehabbed and having their value improved, and having parking lots being paved and new roofs being put on and beautiful signage being put up. So the example that people in Michigan have seen of the medical community has been a positive one over the last nine years. It’s one of the reasons why we had such a low undecided rate going into the November 6 election.

TG Branfalt: Are there any immediate social justice aspects in the bill? And what about social equity?

Rick Thompson: Well, one of the things our bill suggests is that we try to reward communities that have been historically disadvantaged by the war on drugs. The methodology through which the state selectively helps those communities is not outlined. When you do a voter directed initiative, you’re limited in the amount of space that you can use. So you can’t put everything in that you might possibly want. You can direct a state to do something, but you may not be able to fully articulate the method by which you want the state to accomplish that purpose.

So to a certain degree, we’ve laid out some guidelines and then we’re trusting the state to follow through and make sure that they honor our intent. But the biggest thing as far as social justice goes is expungement. And we wanted to make sure that that was included in the bill in order to relieve people who were convicted of crimes that would now be legalized under the new proposal’s law. We were not able to include expungement in our proposal, because Michigan has something called a single issue rule. And it means that voter directed initiative cannot focus on too many things. If it tries to accomplish too much in too many areas of law, then it can be determined to be invalid. And our attorneys were concerned that if we included expungement we might be assailable in court. However, in Michigan there is a second way to accomplish expungement, and that’s through a legislative process. Representative Sheldon Neely from Flint here has introduced a bill for expungement already in the legislative session. It may not get a lot of attention in 2018 because of all the other things they’re trying to accomplish during this very brief lame duck session that they have, but 2019 almost certainly we’re going to see expungement introduced.

And both our new incoming attorney general and our incoming governor have both expressed support for the concept of expungement. So we feel like we’ll actually have a government that wants to accomplish the things that we want to accomplish. Which will be a very nice position to be in finally.

TG Branfalt: And you’re of course talking about Schuette who was not friendly to your cause. How will patients in the medical cannabis program in the state be affected by the legalization measure?

Rick Thompson: What we think is that the patient population is going to be enhanced by the legalization proposal. Right now, patients rule. They’re the only people that can grow plants in Michigan legally until December 6. And you can assign a caregiver to grow your plants on your behalf, and that caregiver can accumulate up to five patients and grow on their behalf too. So if that caregiver is also a patient, and he has five patients as well, that gives him a maximum of 72 plants in his domicile that he can legally grow. With the legalization proposal, we wanted to be able to help somebody who’s growing 60 or 72 plants have a leg into the business community. So we set a bar low in order to be able to accomplish that. We put a 100 plant grow limit on that, so it should be easy to translate someone’s skill set from a 72 plant grow to a 100 plant grow.

It might be very difficult to translate it from a 72 plant grow to a 500 plant grow as currently is outlined in the medical marijuana business program. So with the legalization we wanted to give it an easier way for people to become business persons. But we also wanted to respect the integrity of someone’s ability to be able to cultivate and process their own cannabis in maybe an organic way or perhaps to provide for that specialty product that certain groups of consumers are going to want.

So we created something called a micro business environment. And that would be a vertically integrated grow processing and retail operation run by a single entity or family. And we tried to model it after the craft beer licensing style. And that should be much easier to get into than it would be if you were trying to arrange the same three type of licenses through the medical program, which would require you to have at least three quarters of a million dollars in financial equity in order to secure those three licenses individually.

So we architected legalization to make it easier for patients to translate the skills that they developed growing for themselves or for others into a business advantage. In addition to that, by using the existing medical business framework to launch the legalization framework from means that the locations that patients are used to getting medicine from will be the place that they could go to if they needed to gain other things. If you needed to behave not like a patient for awhile, if you needed to acquire clones or if you needed to acquire something else, you’d have an opportunity to do so through the legalized market.

TG Branfalt: That’s really forward thinking of your initiative, of the drafters of the initiative. What states did you guys look to for best practices. You had several state legislations to choose from instead of say one or two.

Rick Thompson: Well, I will first of all state right out that I was not one of the people sitting at that drafting table in order to hammer out that process. I am not personality-wise suited to dealing with people that propose idiocy, so I was not well suited to that task. So other people did, Jeff Hank, Matthew Able, Jamie Lowell, specifically for our cause. But most of what we saw from national programs was brought to us by our national partners. You can’t beat the Drug Policy Alliance or Marijuana Policy Project for having that knowledge and that leg up on all the different intricacies of the different state programs.

And the experience base that they brought to it as well was invaluable. We couldn’t duplicate that just from in state activists. They told us what worked in previous states, what didn’t. They brought us examples of language that we could look at to try and accomplish a single goal and a variety of different ways. And we hacked out some of the experiences they had in other states. And then helped them understand why what they proposed would or would not work in Michigan based on our unique structure. So a lot of what we did was directed by our national partners when it came to melding some of those policies.

But there was certainly a move to only allow two plants at some point. There certainly was a move to only allow six plants at some point. But our negotiating partners, especially the three men I just mentioned, they helped to secure that 12 plant standard. Which mirrors what we give our medical patients as far as permission and privilege in Michigan.

TG Branfalt: So I want to sort of switch gears a little bit and talk to you about the state police program that was searching for cannabis impairment using mouth swabs. They recently wrapped that up. Have you heard anything yet about the results about the results of that program or whether they’re going to continue to use that mouth swab test to test of cannabis impairment. What do you know about that?

Rick Thompson: Well, in 2016 the legislature enacted two separate issues. One of them was to put an impaired driving commission out there whose specific purpose in title was to determine a THC limit for impairment for drivers. Not to determine if an impairment limit was valid scientifically, but to determine a number they could use. Which is really not the way you do science. Secondly, they initiated this roadside swab testing that you’re talking about. Now the roadside swab testing was a pilot program for only five counties. And it’s not scientifically performed. In other words, when a drug recognition expert has you pulled over on the side of the road, he decides then whether he thinks you may be impaired and then gives you the test. Not giving the test to just everybody that they happen to stop. So we expect that those tests are going to have a higher rate of return of success because they’ve been selectively using the tests and the way they apply them.

The other thing is it’s not Food and Drug Administration approved so there’s a question about the reliability and accuracy. And in fact this pilot program was designed and pitched to the legislature as an experiment to determine the validity of this particular type of test. Which to me always seemed like we were using Michigan citizens to do some testing that the manufacturer should have done at their own expense prior to bringing any of these tests out onto the market. But we’ll see the results of the tests after 2019. But we may see the influence of those tests here in the next few days.

Because one of the things that some of the conservative legislators in Michigan who are leaving power have wanted to do is establish that THC nanogram driving limit. And I don’t think they believe that they’re going to get that limit established under a very friendly administration by the incoming governor and attorney general, so they may very well try to push through legislation that establishes that standard utilizing the results that they got from those mouth swabs even though they may not have fully formed a report that are ready to submit to the people.

We’re very concerned about it. It seems incredibly subjective. The mouth swabs, if it returns a positive result, then you have to have a blood test in order to confirm. So if you get swabbed and it says yes, you’re guaranteed a ride to the hospital. Which is just atrocious. The science obviously is not there to improve any kind of an oral swab would indicate impairment. We believe that the best way to determine someone’s operating their vehicle in an inappropriate or unsafe manner is to watch how they operate their vehicle. And when you see them operating it in an unsafe manner then you can take action. The content of their bloodstream doesn’t determine their ability to drive correctly.

TG Branfalt: I’m sure you’ll be keeping a close eye on this, so probably publishing it on the Social Revolution blog, I’d imagine, huh?

Rick Thompson: Well we do a lot of work with the legislature on these particular issues. We have a couple of different partners that specifically work up in Lansing that do things. So we will be talking about this, we will be putting things out as regularly as we can to keep everyone updated. Again, there’s just such a lack of information coming from the state. But in Michigan, we’re very fortunate that we have strong media partnerships which have been developed over the last ten years of advocacy on behalf of medical marijuana patients.

Now media members recognize the issues we’ve been raising. They see the contradictions that are being said by the government and now they question those voices of authority that told them in the past things like kids are going to get this, people are going to start going to the hospital, you’re going to see traffic fatalities increase. They’re demanding proof instead of just accepting the words. And that’s an evolution that you can’t pay for. You have to earn that. And you only get that by years and years of being a good media partner and behaving properly in your state. And our patients have earned that.

TG Branfalt: So throughout this conversation, man, you’ve covered a lot of ground. Now I want to ask you what your advice is for advocates in states, the few that remain with the initiative processes, that might attempt to undertake this petition process.

Rick Thompson: All right, my advice for people who want to undertake the petition process is have your head examined. It’s a lot of work. The fact is, though, not every state offers a petition process. So if you live in a state that does, you kind of have an extra obligation to do it, people. Because, folks in about 24 states don’t have that right, and they have to go through the legislature to accomplish anything. First thing I would say, though, is identify who positive partners are going to be. And you have to have a frank evaluation about whose personalities just do not gel with the rest of the group.

Then you have to make sure those people are not included. Now there’s ways you can do it that don’t offend, that still allow you to maintain infrastructure but you have to eliminate people that simply can’t compromise. And that means sometimes some of your strongest patient advocates have to maybe sit on the sidelines. Because if you can’t negotiate something, you can’t be part of a group. Groups are about negotiation and compromise.

Secondly, I think you have to line up in advance financial sources. One of the things we chased during the entire time in the 2016 campaign, and then again in the 2018 campaign, was funding. It’s impossible to secure all your funding up front. But if you have people upon who you know you can count on when crucial deadlines come up or when you need more petitions printed or you need to have some media counter some negative attacks that you’re experiencing, if you’ve got people you can count on in those times, then you’re doing pretty good. But then it’s find a mentor. And that mentor would be an organization who has successfully done this in other states. Marijuana Policy Project, Drug Policy Alliance, National Organization for the Reform of Marijuana Laws. You can pick your national partner, but pick their brain and get them involved. We suffered twice and were unsuccessful because we tried to do it on our own. And when we brought the national partner in we’d already been an infrastructure that made it possible for us to be successful.

But without the national partnership we would not have collected enough signatures to qualify for the ballot.

TG Branfalt: Well, Rick, this has been a really enlightening, really great conversation. Congratulations on your success. I really look forward to seeing how this develops. And as you know I spent a little bit of time in Detroit and I think it might be time for a visit back.

Rick Thompson: Yeah. I’ll have some mitten-style hospitality for you if you come back to Great Lakes, buddy.

TG Branfalt: I really appreciate your time, Rick.

Rick Thompson: Thank you very much, Tim. I enjoy Ganjapreneur and all the different things that you all do.

TG Branfalt: Thank you.

You can find more episodes of Ganjapreneur.com podcasts 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.

End


House of Representatives

Congress Passes Industrial Hemp Legalization

The unified 2018 Farm Bill was passed by the U.S. Senate and then soared through the House of Representatives this week, paving the road for American farmers to cultivate industrial hemp.

The $867 billion bill struggled to pass a strongly divided Congress due in part to Republican efforts to change the federal food stamp program. However, the final bill — unified by the Senate Agriculture Committee — left out many of the proposed changes.

It does, however, contain language that federally legalizes the cultivation and sale of industrial hemp and its derivatives, including the increasingly lucrative marketplace for cannabidiol (CBD) products.

Hemp has been shown to be useful for textiles, construction materials, food, wellness products including skin cream and daily supplements, bio fuel, and more.

Bethany Gomez, the research director for Brightfield Group — a CBD and cannabis market research firm — called it a “watershed moment” for the CBD industry.

“With hemp and all of its derivatives officially removed from the controlled substances act, CBD moves from a legal gray area into the light. … [Even with] minimal marketing budgets, limited distribution channels, and only small brands, CBD has catapulted to the national stage this year, growing by more than 80% to reach $590 million. Now that the Farm Bill has gone through, we expect the US market for CBD to hit $22 billion by 2022.” — Bethany Gomez, Brightfield Group’s Director of Research, in a statement

The hemp provisions contain a clause blocking individuals with felony convictions related to a controlled substance from the industrial hemp market for ten years following their conviction. Some Republicans had sought tighter restrictions but contention brought the matter to a compromising middle ground.

Senate Majority Leader Mitch McConnell (R-Kentucky) signed the finalized version of the bill using a hemp pen. Industrial hemp legalization has been a personal crusade for Sen. McConnell, who guaranteed earlier this year that his hemp legalization language would survive the reconciliation of the House and Senate versions of the bill.

The bill now heads to President Trump’s desk. While Trump’s political positions tend to swing wildly, he is expected to sign the bill into law, as many farmers and ranchers have pressured Republican lawmakers to see the bill passed and further delay would undoubtedly upset his base, not to mention agricultural business interests.

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Illinois Capital

Illinois Expungement Bill Receives New Support

An Illinois state Senate bill that would expunge low-level cannabis crimes has received new support, according to a WQAD 8 report.

Illinois Senate Assistant Majority Leader Kimberly Lightford (D) has officially taken up the bill and many hope her status will carry it forward. Lightford needs to get the bill passed by the state Senate and onto Illinois Gov. Bruce Rauner’s desk before the start of the next session, or the process will start all over.

Illinois decriminalized the possession of 10 grams or less of cannabis in 2016. The proposal in question will allow people with convictions meeting that criteria to clear them from their record entirely, with permission from a judge.

“As the conversation about legalizing recreational marijuana continues to gain traction, it would be irresponsible of legislators to overlook the damage over-criminalization has caused. This measure is about helping nonviolent offenders rehabilitate and have a better chance of getting a job.” — State Sen. Kimberly Lightford (D-Maywood), via WQAD

The measure is opposed by the Illinois Sheriffs’ Association.

The bill was first sponsored by state Rep. La Shawn Ford. A report from the American Civil Liberties Union from 2013 shows that African-Americans in Illinois are seven times more likely to be arrested for cannabis possession than other communities.

“We need fairness and equity in the process,” Ford said. “This is just the first step in ensuring that this ‘war on drugs’ that we’ve been fighting that has disproportionately affected black and brown people in the city of Chicago, is fair.”

Rep. Ford is currently running to be Chicago‘s mayor. Should the bill become law, Ford said he will petition every state attorney in Illinois to begin the process of expunging all low-level cannabis charges.

End


Ohio Statehouse

Ohio’s First Dispensary Approved for Operation

On Wednesday, Ohio regulators issued the state’s first certificate of operation for a medical cannabis dispensary, according to the The Cincinnati Enquirer.

The first dispensary, which will be run by Cresco Labs, will open in Wintersville, about 240 miles northeast from Cincinnati. Cresco Labs is the first of 56 applicants to receive the final green light for operations.

“Receiving the first approval to operate is a major milestone in the transformation of the cannabis program in Ohio.” — Charles Bachtell, CEO of Cresco Labs, via Cincinnati.com

The only remaining hurdle for providing cannabis to Ohio patients is testing labs. None of the five applicant labs have yet been approved by state regulators. Two growers have already harvested crops — and a third, larger grow is poised to harvest later this month — but all products sold under Ohio’s medical cannabis program are required to be tested by a third party.

Hocking College’s testing lab is scheduled to have its final inspection on December 18 and is expected to begin accepting samples the following day. Dried flower will have a three-day turnaround; edibles will take slightly longer. Other types of cannabis products won’t be manufactured until next year.

Everyone involved seems optimistic that the first medicinal flower sales will occur by the end of 2018.

More than 1,062 patients have been issued medical cards by the state of Ohio and are awaiting product.

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Medical Cannabis

New Zealand Expands Medical Cannabis; Adult-Use Referendum Expected

New Zealand lawmakers have passed a comprehensive medical cannabis law that will allow for immediate use by terminally ill patients, ABC News reports.

The full medical cannabis regulations will take time to roll out, which is why the law provides protection for those who may not have the time to wait. New Zealand is also expected to hold an adult-use legalization referendum within the next two years.

Prior to this development, medical cannabis in the country has been highly restricted. The new regulations will allow patients to have much broader access to cannabis.

“People nearing the end of their lives should not have to worry about being arrested or imprisoned for trying to manage their pain.” — Dr. David Clark, Health Minister for New Zealand, via ABC News

Opponents of the new law call it “decriminalization by stealth” and say dry herb cannabis is “not a medicine.”

New Zealand‘s Ministry of Health is expected to release a paper explaining the coming medical cannabis market’s structure sometime early next year, which will be followed by a period of open public comment.

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The Chicago, Illinois city skyline photographed from distance.

Illinois Gov.-Elect Wants to Legalize Before Michigan

Illinois Gov.-elect J.B. Pritzker doubled down on adult-use cannabis legalization this week, telling reporters he thinks Illinois could be the first Midwestern state to establish a taxed-and-regulated marketplace, NPR Illinois reports.

Pritzker’s progressive cannabis views have raised the hopes of Illinois advocates but his latest sentiment — that the state should launch its regulated marketplace before Michigan, which legalized cannabis in the midterms via a voter referendum — goes far beyond the zeal expressed by most other pro-cannabis politicians.

“There’s an opportunity for us to be the first state in the Midwest to make it available, and so I think the legislature should get at it.” — Illinois Gov.-elect J.B. Pritzker, via NPR Illinois

While Michigan lawmakers are looking at ways to restrict the state’s voter-approved legalization initiative, Pritzker says Illinois should press the issue in the early 2019 legislative session and launch its market as quickly as possible.

“The good news about being eighth or ninth to get this done is we can look at what works and put it in place in Illinois,” Pritzker said.

“I suspect it’s a done deal. People see it as a new source of revenue,” cannabis consultant and lobbyist Pat Brady told The Chicago Tribune in November. “The true battle will be over who gets their cut of it taxwise.”

10 states plus the District of Columbia have now ended cannabis prohibition, but only one state so far — Vermont, early in 2018 — has successfully done so via the legislature.

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Michigan Statehouse

Michigan Bill Would Remove Background Checks for Some Cannabis Investors

The Michigan House of Representatives passed a bill on Tuesday that would remove some background check requirements for people who own 5 percent or less of a business seeking a cannabis license, according to the Detroit Free Press.

Michigan’s current regulations require persons owning any stake at all in a potential cannabis business to undergo a background and credit check. This created a high barrier to entry for anyone who has ever been convicted of cannabis possession, among other charges.

Under HB6500, those who own less than 5 percent no longer need to undergo the background check. This class of owner is looked at as an investor and the bill should encourage more investors into the fledgling cannabis economy. The bill also further limits the Medical Marijuana Licensing Board’s ability to consider arrests, charges without a conviction, and expunged records against applicants.

“If you own less than 5 percent, then you don’t have to go through all the financial disclosures. If they own less than 5 percent, they’re not really decision makers, they’re really just investors. And rather than clog the system and create lag in issuing licenses, this allows investment to come into state more easily.” — State Rep. Klint Kesto (R-Commerce Township), to the Detroit Free Press

Dissidents fear that removing the background check requirement will encourage those of questionable character — and their questionable money — to insert themselves into the legal cannabis economy. Advocates disagree and, like Rep. Kesto, argue that it will only encourage investment and not derail the entire market.

Many states with legalization prevent cannabis licenses from going to those with controlled substance convictions — including for simple cannabis possession. Advocates argue that this unfairly limits access to the new economy by minorities and other communities that were disproportionately targeted by the War on Drugs. For this reason, New York, Massachusetts, and other states with more recent cannabis reforms have started implementing social justice provisions in their laws.

While HB6500 is a small step, it’s a step in the right direction. The bill now must pass Michigan‘s Senate before going to the governor’s desk to be signed into law.

End


Graduates

Colleges Across Canada Are Adding Cannabis Production Classes

Canadian colleges are starting to add for-credit cannabis classes to their offerings as the cannabis sector grows, The Washington Post reports.

The trend is growing. Companies like Beleave Kannabis Corp in Ontario are pressuring universities there to provide training for the cannabis sector.

“I’m going to pillage the top of your class. All your 4.0 GPAs, send them this way.” — Roger Ferreira, Chief Science Officer of Beleave Kannabis Corp to The Washington Post

Almost a dozen colleges across Canada are expanding their cannabis education options, many of which will count towards degrees. Starting in 2020, McGill University in Montreal will even offer a graduate degree in cannabis production for students with botany backgrounds.

Modern cannabis production is heavily informed by science. Genetics, horticulture, and soil chemistry are just a few of the serious subjects covered by cannabis growers.

But even these programs may not be enough. Job openings for cannabis positions have tripled in the last year, according to jobs site Indeed.com. 34 out of every 10,000 postings on the site are for cannabis jobs.

When Canadian lawmakers legalize edibles, which is expected next year, the need for cannabis labor will intensify. But any demand that the legal market can’t meet will be scooped up by the still-remaining illicit market, delaying the transition to a fully legal market.

Education, it turns out, is a big part of normalization.

End


Delivery Person

California Approves Statewide Cannabis Delivery Services

California’s Bureau of Cannabis Control (BCC) on Friday moved to allow the delivery of cannabis products across the entire state — even to areas with local bans on cannabis sales — according to NBC San Diego.

The move was protested by several law enforcement groups as well as the California League of Cities due to the fact that deliveries can now be made to jurisdictions where cannabis sales have been banned.

The BCC nonetheless argued that Proposition 64 — California’s adult-use legalization initiative — allows for statewide deliveries. The bureau, however, needed to add explicit language addressing the issue after several law enforcement officials said they would arrest licensed delivery drivers if they were caught in areas that had banned cannabis sales.

Supporters say that sick or handicapped patients in regions with cannabis bans will need deliveries so that they can still receive their medication. California is one of the largest states in the U.S. — it can be a multi-hour drive from some areas to the nearest dispensary.

The California League of Cities is waiting to see if the Office of Administrative Law intervenes on the issue before deciding whether or not to proceed further in their opposition.

Unless California‘s Office of Administrative Law intervenes, the rules will become law in 30 days.

End


Mitch McConnell Uses Hemp Pen to Sign Finalized Farm Bill

The final version of the 2018 Farm Bill was released this week and Senate Majority Leader Mitch McConnell (R-Kentucky) symbolically signed his name to the bill — which will federally legalize industrial hemp — using a pen made from hemp, the senator tweeted yesterday.

The 800-page text of the farm bill was made public on Monday and, as promised, hemp legalization made the cut. The bill will also allow for insurance packages for hemp crops.

The bipartisan bill, when approved in its final vote sometime this week, is expected to pass President Trump’s desk into law without issue.

In his tweet, Sen. McConnell shared a video that loops himself signing the bill with a “hemp pen.”

“With today’s signature, my provision to legalize industrial hemp is 1 step closer to reality,” he wrote.

There were some hangups in the process of consolidating the House and Senate versions of the bill, including a partisan dispute over adding work requirements to the federal food stamp program, SNAP.

There was also a contested effort to block people with felony convictions related to a controlled substance from participating in the soon-to-be-established federal hemp industry. Lawmakers reached a compromise, however, that would only block said individuals for the ten years directly following their drug-related conviction.

When passed, the bill is expected to more or less normalize the industrial hemp and therefore CBD product industries.

End


Pesticide Plane

Canada Unveils New Cannabis Testing Standards for 2019

Health Canada has announced new pesticide testing rules for licensed producers in Canada, The Growth Op reports.

Starting January 2, Canada will require licensed producers (LPs) to submit samples of all products to independent laboratories to be tested for nearly 100 different pesticides. During Canada’s medical-only days, most pesticides were prohibited but there was no system of independent testing to guarantee the rules were being followed.

LPs largely support the move and herald it as a necessary step.

“My opinion is that the industry, on the whole, is trying to do a good job. The problem is, you’re going from essentially a completely illegal industry to one that is legal and highly regulated, and it’s a transition. Getting rid of some of the bad habits is going to take a bit of time.” — John Coleman, President of Anandia Labs, via The Growth Op

Only pesticides approved by the Pest Management Regulatory Agency will be allowed for cannabis cultivators.

Should the tests turn up any unauthorized pesticide use, Health Canada will quarantine the product and launch an investigation into the LP and exactly where the contamination originated.

Adult-use cannabis became legal in Canada on October 17.

End


Empty Billboard

Maryland Commission Votes to Ban Medical Cannabis Advertisements

Last Thursday, Maryland’s Medical Cannabis Commission voted unanimously to ban billboard, TV, radio, and most online advertising for cannabis in the state, The Baltimore Sun reports.

Cannabis trade associations and other cannabis firm representatives said they will fight the move in the Maryland legislature in the 2019 session.

The rules, which technically still allow for some advertising, require jumping through hoops so difficult that many say it’s effectively a complete ban on advertising. For instance, any online ad must be preceded by an age gate — meaning that many Internet advertising platforms will be out of reach, as they are hosted and coordinated by third parties like Google and don’t have the possibility of an easy gate.

“This a total ban on advertising. Social media is our only source. How do we communicate with anyone when Instagram is shutting down every cannabis-related account there?” — Mackie Barch, Chairman of the Maryland Wholesale Medical Cannabis Trade Association, to The Baltimore Sun

Cannabis industry advocates say the new rules squash competition and make it impossible for new cannabis companies to expand their business.

Some have attributed the ban to concerns from just two lawmakers over a single incident involving a billboard on Maryland Route 50 that depicted Adam and Eve smoking a joint. Regulators, however, claim the changes were made to align medical cannabis advertising rules with the rules already in place for tobacco.

Many were surprised by the rule change, which came shortly after a period of public testimony on the issue. Nearly everyone who testified — including the Attorney General’s office — were hesitant to support the ban and asked the commission to take its time in considering the issue.

The final step is a review by the state Attorney General office, though some industry advocates are holding out hope for interference from Maryland‘s General Assembly.

It’s unclear when exactly the rules would take effect.

End


Surgeon General

Surgeon General Advocates for Rescheduling Cannabis

U.S. Surgeon General Jerome Adams said that cannabis’ federal Schedule I classification should be reconsidered, Marijuana Moment reports.

Dr. Adams spoke at a Q&A session during a conference held by the Police Assisted Addiction Recovery Initiative in Massachusetts.

“Just as we need to look at criminal justice laws, rules and regulations, we need to look at health laws, rules and regulations, and that includes the scheduling system. … I’ll take it somewhere else: marijuana. We need to look at the way we schedule different medications across the board, because one of the concerns that I have with marijuana is the difficulty that the folks have to do research on it, because of the scheduling system.” — U.S. Surgeon General Jerome Adams, via Marijuana Moment

Adams has not shown support for any cannabis-specific issue beyond research. He has, however, shown disbelief for the plant’s usefulness as an opiate off-ramp, despite evidence to the contrary. While he has favored other drug harm-reduction strategies, Adams’ position seems to be mostly against full adult-use cannabis legalization.

It has been observed by many before that, outside of reasons for legalization or other issues, at the very least cannabis’ Schedule I Classification is a hindrance for research into either side of the issue. An endorsement for rescheduling by the nation’s top doctor is favorable as we inch closer to an end to the federal war on cannabis.

 

End


U.S. Department of Justice

Trump Taps Drug War-Era AG William Barr to Replace Sessions

President Donald Trump told reporters on Friday that his next nominee for U.S. Attorney General will be William Barr, who previously held the post for two years under President George H.W. Bush, according to a Leafly report.

Barr is a known Republican who has served multiple roles in the Justice Department aside from his stint as attorney general from 1991 to 1993.

During his tenure as attorney general, Barr advanced a stern anti-drug agenda pursuant to President Bush’s platform. H.W. Bush’s administration was known for embracing the drug war.

Because of mixed messages from the Trump administration, it’s unknown whether or not Barr would continue an anti-drug agenda if confirmed as attorney general. While Bush seemed to be the impetus behind most of the anti-drug policy of that administration, Barr himself endorsed a government report that encouraged incarceration among other pro-prison and anti-drug decisions. The Drug Policy Alliance has called Barr “a fierce advocate for mass incarceration and punitive drug policies.”

It’s possible, however, that Barr may have updated his stance on cannabis.

“Mr. Barr is a very smart man, and I don’t have any doubt that he’s fully apprised of the failures of the drug war. As to what his leanings might be concerning cannabis, I think it’s difficult to look through a lens that existed in 1991 and 1993 and extrapolate that to this time.” — Barry Grissom, former U.S. Attorney for Kansas, in an interview with Leafly

Grissom also said the $1.5 billion in cannabis sales seen in Colorado last year is a potent reason for any nominee to take a softer stance on cannabis legalization. “What that should tell anyone that’s a prosecutor is that $1.5 billion didn’t go to criminals,” said Grissom.

Barr is pending confirmation by Congress. Until then, acting Attorney General Matt Whitaker — who took over after the firing of Jeff Sessions — will continue to head the Justice Department.

End


Mexican Flag

Aurora Strikes Supply Deal With Mexican Pharmaceutical Company

Aurora Cannabis has announced that it completed a medical cannabis supply deal with Mexican pharmaceutical company Farmacias Magistrales, according to the CBC.

Mexico’s federal government has only recently started acting on the Mexican Supreme Court’s ruling to end cannabis prohibition. The court has now ruled several times in favor of the the right to possess cannabis, which mandates legislative action to officially legalize cannabis.

Farmacias Magistrales received the country’s first cannabis import license following that development. Farmacias Magistrales has tens of thousands of retail outlets and operates hundreds of hospitals and pharmacies across Mexico.

Aurora, one of Canada‘s largest licensed cannabis producers, said the partnership between the two companies is exclusive.

CEO Terry Booth said the partnership cements Aurora’s early-mover advantage in the region.

“We look forward to working with Farmacias, and leveraging its strong retail, pharmacy, and hospital networks to provide high-quality, medical grade cannabis to patients in this new and significant market. We will also offer the Mexican government authorities whatever support they deem valuable, based on our insights and experience … in multiple … medical cannabis systems around the world.” — Aurora CEO Terry Booth, in a statement

Aurora shares climbed on the Toronto Stock Exchange after news of the development broke.

End


Data Breach at Florida Dispensary Highlights Vulnerabilities

Last week, a Florida medical cannabis dispensary took their website offline after it was found that patient information was obtainable through the site’s basic search function.

Sarasota-based AltMed is a licensed Medical Marijuana Treatment Center (MMTC) that also goes by the name MÜV. AltMed responded quickly by taking their website offline after a customer noticed the search function was revealing sensitive customer information.

“Within 10 minutes, our Information technology staff removed the search engine function. We then retained Kroll, Inc. an industry leader in data risk and security,” the company said in a statement posted to its Facebook page.

“Based on the forensic review thus far it appears that there was limited access to the site with limited information accessed. The review will continue until we fully understand what happened and who is responsible.”

The site remains down while AltMed conducts an investigation; the dispensary will notify all affected individuals by mail. Meanwhile, patients can still access medicine from AltMed by contacting their local dispensary to set up deliveries.

A recent Canna Law Blog investigation warns that cannabis businesses are particularly vulnerable to data breaches.

Breaches are inevitable and happen in all sectors of the economy, the article acknowledges, but cannabis is especially at risk due to its special relationship with technology and the plant’s ongoing federal prohibition.

Besides the financial cost, which can run into the tens of thousands, depending on the severity of the breach, cannabis businesses face damage to their reputations and risk becoming embroiled in federal and state investigations.

End


A cannabis worker plucks a leaf from the stem of a fully grow commercial-grade marijuana plant.

Pennsylvania Establishes Process for Approving Cannabis Qualifying Conditions

The Pennsylvania Medical Marijuana Advisory Board on Friday unanimously approved a new process for approving conditions recognized under the state’s Medical Marijuana Act, according to a press release.

The application — which is listed under it’s own tab on the Medical Marijuana Advisory Board website — is available to patients, doctors, and members of the general public. Anyone who wants to can fill out the form and present a case for adding, changing, or removing a medical cannabis qualifying condition.

Applicants will need to provide several pieces of evidence to successfully augment the program, including:

  • References supporting their opinion
  • Documentation supporting cannabis’ efficacy in treating the condition
  • Documentation supporting the opinion that cannabis’ benefits for the condition would outweigh any potential health risks

“As medical literature surrounding the uses of medical marijuana expands, we want to ensure our list of qualifying conditions meets the needs of Pennsylvanians. This process will allow those with serious medical conditions to apply to have their condition be part of the list of qualifying conditions, with the support of medical professionals and documentation that supports their application.” — Pennsylvania Secretary of Health Dr. Rachel Levine, in a statement

Since it’s launch in 2016, more than 95,000 patients have registered with the Pennsylvania medical cannabis program. Among those patients, more than 64,000 carry identification cards that enable them to purchase medical cannabis products from dispensaries. There are approximately 1,360 physicians registered with the program.

Note: Pennsylvania dispensaries can sell concentrates, tinctures, pills creams, and flower products (but only for vaporization purposes — the program does not condone smoking). Edibles are not allowed.

End


Marlboro Parent Company Makes $1.8 Billion Bet On Cannabis

Altria Group Inc. announced today the world’s first “Big Tobacco” investment into the cannabis space: a whopping $1.8 billion for Canadian LP Cronos Group, CNN reports.

Altria — the parent company behind Phillip Morris USA and Marlboro cigarettes — will have a 45 percent stake in Cronos following the investment, with the option for increasing its share to 55 percent over the next five years.

News about the potential investment first broke earlier this week.

“Altria is the ideal partner for Cronos Group, providing the resources and expertise we need to meaningfully accelerate our strategic growth.” — Cronos Group Chairman, President, and CEO Mike Gorenstein, in a press release

Altria has seen its stocks consistently drop in recent years as the popularity of cigarettes and tobacco in general has diminished.

“Investing in Cronos Group as our exclusive partner in the emerging global cannabis category represents an exciting new growth opportunity for Altria,” Altria Chairman and CEO Howard Willard said in a statement. “We believe that Cronos Group’s excellent management team has built capabilities necessary to compete globally, and we look forward to helping Cronos Group realize its significant growth potential.”

Altria stock had fallen 25 percent so far, this year — however, following its cannabis announcement, the major tobacco firm’s shares saw a 2 percent rise in early trading on Friday. Meanwhile, Cronos shares had soared some 30 percent.

“Importantly, Altria shares our vision of driving long-term value through innovation, and we look forward to continuing to differentiate in this area,” said Cronos CEO Mike Gorenstein. “As one of the largest holding companies in the adult consumer products sector, Altria has decades of experience in regulatory, government affairs, compliance, product development and brand management that we expect to leverage, particularly as new markets for cannabis open around the world.”

The $1.8 billion investment — about C$2.4 billion — is the industry’s first “Big Tobacco” investment, but several major alcohol companies have already injected money into the cannabis space. Constellation Brands, the brewer of Corona beer and a major North American distributor for Svedka vodka, invested $4 billion into Canada’s Canopy Growth earlier this year. It remains the largest investment into the cannabis space, so far.

Coca-Cola Inc. was also in talks briefly about launching a CBD product line in Canada but the potential deal reportedly stalled shortly after it was revealed.

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Sewer

Canada Using Sewage to Track Cannabis Consumption

Statistics Canada is performing tests on wastewater in Canada in an attempt to track consumption of cannabis and the size of the illicit market, The Globe and Mail reports.

The method is called Wastewater-Based Epidemiology, or WBE. The process was pioneered more than 10 years ago in Europe as a way of tracking cannabis use without relying on self-reporting, which is notoriously unreliable — especially during prohibition.

The Canadian national statistics agency is using WBE in five cities across Canada. According to results from this method, these are the five cities listed in the order of highest to lowest consumption per capita: Halifax, Montreal, Toronto, Edmonton, and lastly Vancouver.

Some 8.4 million Canadians reside in those cities, about 4.3 percent of the nation’s population. Researchers hope to look at baseline levels and then subtract the amount of cannabis known to be sold through the regulated market to estimate illicit market’s size and track if it’s growing or shrinking.

While the amounts tracked are extremely minute, one of the researchers said that the goal was to track a trend over time and not specific consumption rates.

Some criticize the method, however, claiming there are too many variables in the equation such as storm water runoff, cannabis potency, method of delivery — such as edibles or smoking — and unpredictable water conditions.

One researcher said, however, “There may be some flaws in it, but I think if the flaws are consistent over time, then the trend will emerge.”

Cannabis was legalized for adults throughout Canada in October.

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Montreal, Quebec

Quebec May Outlaw Public Cannabis Consumption, Raise Age to 21

On Wednesday, the Quebec provincial legislature began discussing a bill to outlaw public cannabis consumption and raise the legal age for possession to 21, CTV News report.

The Coalition Avenir Quebec party campaigned on the promise to raise the age of consumption to 21 and is following through on that promise with the new legislation. The proposal would also prohibit any public use of cannabis in parks or on the street.

The legislation poses potential problems for the city of Montreal, where a large percentage of the province’s residents. Additionally, 60 percent of Montreal’s population are renters. Current laws allow landlords to prohibit cannabis consumption in their properties and, if the right to consume outside is also removed, it will leave many people with no ability to partake at all.

Some also argue that raising the age limit is a mistake, including Prime Minister Justin Trudeau, who championed cannabis legalization during his campaign.

“An 18-year-old this week could buy cannabis legally, but in a few months maybe he’ll just have to buy it from Hells Angels.” — Canadian PM Justin Trudeau, to reporters in Ottawa

Quebec public health officials say the dangers of cannabis for developing brains have been made clear via research and that the ideal age to start consuming cannabis is 25. Therefore, their goal is to, “delay the first consumption as much as possible.”

Quebec already has some of the strictest cannabis laws in Canada, having already removed the possibility of home grows, which are allowed under federal law. Federal officials say they have no interest in intervening and will allow Quebec to set its own policies, as provided for by the federal law.

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Salt Lake City, Utah

Utah Advocates Sue State Gov. Over Cannabis Replacement Bill

Two groups representing Utah patients are suing the state legislature over its replacement of a voter-backed medical cannabis initiative with a weaker bill, according to the Salt Lake Tribune.

The groups, the Epilepsy Association of Utah (EAU) and Together for Responsible Use and Cannabis Education (TRUCE), say the Utah legislature “abridged the rights of voters” in an effort to appease the Church of Jesus Christ of Latter-day Saints.

TRUCE had previously promised to sue if the voter-backed Proposition 2 was not passed into law as-written. The legislature nonetheless replaced Proposition 2 with the Utah Medical Cannabis Act (UMCA) on Monday.

“In … direct contravention of the expressed will of the People, … the Legislature, at the behest of the Church and as a result of the Church’s domination and interference, voted to dramatically undermine core purposes of Proposition 2 and the Initiative statute by radically amending, and essentially replacing, the Initiative statute with the passage of [the Utah Medical Cannabis Act], which deprives, reduces, and unreasonably burdens access to medical cannabis.” — Excerpt from the lawsuit filed by TRUCE and EAU

The UMCA was the result of negotiations between previous supporters of Proposition 2 — including the Utah Patients Coalition and the Libertas Institute — the Chuch of Latter-day Saints, and Utah state lawmakers. Advocates said they agreed to the compromise in order to prevent the legislature from gutting the measure entirely.

Technically, church meddling in legal procedures is illegal under the Utah state constitution. Says the constitution: “There shall be no union of Church and State, nor shall any church dominate the State or interfere with its functions.” However, while 62.9 percent of Utah residents may report as Mormon, a disproportionate 87.5 percent of lawmakers in the state are Mormon.

The Church of Latter-day Saints has not yet commented on the lawsuit, though previous comments and emails to TRUCE suggest they will fight the suit. Additionally, according to an email provided by TRUCE, the Church plans to fund their battle with 5-10 million dollars, “raised from wealthy members of the Church.”

Utah Gov. Gary Herbert (R) has also not yet commented on the issue.

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