Hemp Legalization Bill Passed in Iowa, Moves to Gov.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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USDA Releases Hemp Seed Import Guidance

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

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

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

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

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

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Washington State Resumes Heavy Metal Testing

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

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

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

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

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

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Cannabis Beverage Producers Alliance Call for Changes to Canadian Edible Rules

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

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

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

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

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

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Alabama Committee Approves Medical Cannabis Bill

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

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

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

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

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

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

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Texas House Approves Hemp Bill; Moves to Senate

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

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

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

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

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

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

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West Virginia Gov. Reconsidering MMJ Industry Reform Bill

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

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

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

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

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

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

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Cannabis Crypto Startup ParagonCoin Selling Property After SEC Fine

Embattled cannabis tech company ParagonCoin is selling the building it had hoped to use as a shared office space for industry startups, according to a Coindesk report. The sale comes after the company was fined $250,000 by the Securities and Exchange Commission and forced to repay its investors last November.

In its most recent SEC filing, ParagonCoin – founded by reality television star and former Miss Iowa Jessica VerSteeg – indicated they had paid $4.02 million for the space less than a year ago. The filing suggests that Paragon is abandoning its plan to host a co-working space for which rent would be paid using the company’s cryptocurrency.

“We currently do not intend to renovate, improve, or develop other properties. We currently do not intend to make further investments in real estate or acquire any interests in real estate and do not intend to make investments in real estate mortgages,” the filing states.

The firm does plan to continue developing its blockchain, seed-to-sale, software – which, too, would require ParagonCoin crypto tokens as secure payments within the system.

In 2017, the firm had raised $12 million through its initial coin offering. Last November the SEC agreed to register the tokens as securities but contended the company should have initially registered those tokens and that Paragon did not qualify for a registration exemption.

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Dr. Bronner’s CEO Launches Non-Profit Cannabis Company

David Bronner, CEO and president of the soap company that bears his surname, has partnered with Flow Kana to launch Brother David’s – a non-profit cannabis company that will dedicate its profits to charity. Bronner, a noted organic farming advocate, said his soap company, Dr. Bronner’s, has dedicated more than $5 million to the legalization movement since 2001.

All of Brother David’s sun-grown products will be sourced from cultivators that have received Sun + Earth certification, which is given to farms using ethical and ecological best practices.

“Brother David’s provides an alternative to the chemical and fossil-fuel intensive industrial ag model being adopted by many corporations in the cannabis industry. As society moves closer and closer toward the federal legalization of cannabis, we need to chart a new course before it’s too late. We need to promote Sun + Earth and other high bar standards – because it’s best for the Earth in this age of climate crisis, and produces the cleanest, greenest and most ethical cannabis possible.” – David Bronner, in a statement.

In 2012, Bronner was arrested for cultivating hemp in front of the White House in protest of federal laws. He was also arrested in 2009 for digging up the lawn of the Drug Enforcement Agency in Washington, D.C. to plant hemp seeds.

Flow Kana has set up a California supply chain of more than 200 independent farms. Michael Steinmetz, Flow Kana CEO, said the partnership will help fight to preserve the cannabis industry “from the ways of industrial agriculture.”

“This movement is not only about saving these environmental and community values, but making this decentralized model of agriculture the gold standard for others to follow across the cannabis industry and beyond,” he said in a release. “This fight requires everyone’s involvement and careful collaboration across many operators, distributors, retailers, and brands working in tandem to preserve, protect, and evolve our industry and world.”

Brother David products will be available May 7 at select dispensaries in San Francisco, Berkeley and will roll out in Southern California later in the month.

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Maine Cannabis Regulators Release Adult-Use Industry Draft Rules

Officials in Maine have, finally, released their draft rules for the state’s regulated cannabis industry, more than two years after voter approval and two vetoes of regulation legislation by former Gov. Paul LePage.

The largest operators would be allowed 20,000 square feet of canopy of mature plants with outdoor operators paying licensing fees of $15,000 and indoor-outdoor cultivators paying $30,000, according to an outline of the rules from Bangor Daily News. Application fees for the smallest licensees, Tier 1, are set at $100; all other tiers are $500. Nursery’s would pay $60 under the proposed rules. Manufacturers, dispensaries, and testing laboratories would each pay $250 application fees; manufacturers and retailers would pay $2,500 in licensing fees while labs would pay $1,000.

Anyone involved in any aspect of the industry would need a state-issued identification card and undergo a background check by the Federal Bureau of Investigation. The fee for the background check and the card would cost $50 up front and then $50 annually.

The state will use Franwell Inc.’s Metrc seed-to-sale software to track the plants grown and distributed in the state.

The rules were drafted by the Office of Marijuana Policy and underwent additional review by Freedman and Koski, a Colorado-based analytics firm and BOTEC Analysis of California will assist the state with additional rule-making for the program. The cannabis office plans to send the draft rules to the legislature before its June adjournment.

Maine sales are not expected to begin until after the rules are adopted by the legislature.

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VT Hemp Proposal Increases THC Levels; Adopts CBD Grade System

Vermont’s Department of Agriculture has released draft rules for industrial hemp cultivation in the state which includes a THC threshold of 1 percent and a grade system for CBD products.

Dan Change, the co-founder of CBD laboratory Kria Botanicals, told VT Digger that the threshold of 1 percent – higher than the federal definition of 0.3 percent – means “all hemp genetics will be legal” under state law. Under the current regime, all hemp grown in the state must contain no less than three-tenths of 1 percent or it must be destroyed.

The proposed regulations’ rating scale includes:

AA, for products with CBD concentration more than 14 percent;

A, with CBD concentration between 12 and 14 percent;

B, for products with a CBD concentration 10 to 12 percent;

C, with CBD concentration between 8 to 10 percent.

Products with less than 8 percent would be considered biomass, and the concentration analysis must be confirmed by a certified lab.

The document notes there will be licensing fees but does not lay out a schedule. Currently, hemp farmers pay just $25 for a license to cultivate hemp but those fees are expected to increase dramatically for non-hobby and large-scale farms. Last month agriculture officials outlined a plan to charge between $500 and $3,000 per year for hemp licenses depending on acreage. The plan would also impose fees on processors and additional fees for indoor producers.

The agency plans to hold two or three public comment periods before deciding on adopting the rules.

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Trump Admin Will Deny Citizenship for State-Legal Cannabis Use

Immigrants who use cannabis or work in the industry can be denied citizenship even if they are in states where it is legal, according to U.S. Citizenship and Immigration Services guidance issued Apr. 19. The policy penalizes would-be citizens for having broken federal law.

“The policy guidance … clarifies that an applicant who is involved in certain marijuana-related activities may lack [good moral character] if found to have violated federal law, even if such activity has been decriminalized under applicable state laws.” – USCIS policy alert

Earlier this month, Denver Mayor Michael Hancock sent a letter to Attorney General William Barr asking him to reconsider the federal policy to deny naturalization for individuals who work in the cannabis industry. In the letter, outlined by the Washington Post, Hancock says that two immigrants – one from Lithuania and one from El Salvador – “were denied naturalization solely because of their cannabis industry employment.”

Michael Collins, director of National Affairs from the Drug Policy Alliance, told the Post that the policy “has nothing to do with cannabis” rather with the administration’s immigration policies.

“They see cannabis as a ripe opportunity for persecuting these individuals,” Collins said in the report. “The Trump administration has used the war on drugs since the beginning to go after migrant populations.”

USCIS Spokeswoman Jessica Collins told the Post the agency is “required to adjudicate cases based on federal law…which applies to all foreign nationals regardless of the state or jurisdiction in which they reside.”

Kathy Brady, a senior staff lawyer with the Immigrant Legal Resource Center, warned that even individuals “who have had a green card for 20 years” should avoid using cannabis and working “in any aspect” of the industry.

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Vermont Gov. Disputes Senate-Backed Cannabis Sales Bill

Vermont Gov. Phil Scott’s legal counsel told lawmakers that the bill to legalize adult-use sales in the state violates the state Constitution because it doesn’t allow governors the authority to determine the makeup of the panel to regulate the industry, VTDigger reports.

Under the law, passed last month by the Senate, the governor would only appoint the board’s chair, but the governor’s counsel Jaye Pershing Johnson said the state Constitution provided the governor with the power to appoint all of the members of the board.

“When the Legislature decides they will both create the laws and structure the entities in such a way so as to divest the governor of his constitutional duty, that’s where I say that there’s a separation of powers concern.” – Johnson, to VTDigger

Vermont governors do appoint all of the members of the state Board of Liquor and Lottery.

Betsyann Wrask, an attorney with the office of Legislative Council, disagrees with Johnson’s interpretation, arguing the state Constitution “does not state that an Executive Branch entity,” such as the Cannabis Control Board, “cannot be comprised of a majority of legislative appointees.”

Scott, a Republican who has vetoed legislation based on separation of powers issues in the past, indicated last week he believed he needed more control over the board if it would be an executive branch function. He also promised not to sign the regulation measure if it didn’t include roadside saliva testing, but he didn’t go so far to say he would veto it.

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West Virginia Seeks Bank to Serve Medical Cannabis Industry

The West Virginia Treasurer’s Office is now seeking a financial institution to work with the state’s medical cannabis industry with plans to have a request for proposal completed within the next month, according to a MetroNews report. The FRP is currently under legal review.

More than two years after the medical cannabis bill’s passage, sales have yet to roll out in the state, partly due to the banking issue. Jason Frame, director of the state Office of Medical Cannabis, indicated he expects licensing to pick up once a banking vendor is hired.

“Rules to accompany the Medical Cannabis Act have been filed. The structure of the office has been identified. We’ve also identified vendors to help us along in this process and we’ve been able to gain information on the medical cannabis industry overall by visiting other states.” — Frame, via MetroNews

The current law allows the state to issue 10 cultivation permits, 10 processing permits, and 30 dispensary permits; the licensing fees include $50,000 for growers and processors and $10,000 for dispensaries.

Last month, Republican Gov. Jim Justice vetoed a bill that would have allowed regional distribution for medical cannabis products, which supporters said would have helped move the program along.

Under the law signed in 2017, medical cannabis sales were set to begin July 1 but, currently, it’s not clear when products will be available to patients.

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How to Get Into the CBD Industry Without Breaking the Bank

In the last two years, the growth of CBD has been the biggest news story in the health and wellness industries. The CBD market is one of the most promising industries in the U.S. with its value expected to hit the billions in the coming years. Hence, it’s no wonder many are looking to get into the industry in some capacity.

If you are new to CBD, here is all you need to know about the exploding market and how to capitalize on its seemingly endless potential.

What Exactly Is CBD?

It is highly unlikely that you have not heard about CBD or cannabidiol as some may call it. Today, this herbal supplement can be found almost anywhere from health stores to supermarkets and even spas. But, do you know what CBD oil really is?

First things first: CBD is not marijuana and CBD will not get you high. CBD is a compound derived from industrial hemp which, as opposed to marijuana, contains no (THC), the psychoactive ingredient in cannabis plants.

Why Are People Turning to CBD for Their Wellness Needs?

Because CBD does not produce any mind-altering effects, CBD is a purely medicinal supplement. Research shows CBD has potent therapeutic effects thanks to its anti-inflammatory properties which work in tandem with our endocannabinoid system to regulate vital immune system functions.

A daily dose of CBD has been found to help users cope with symptoms related to various conditions including chronic pain, anxiety, and sleep difficulties. Additionally, CBD produces no significant side effects making it a safer choice than many prescription drugs out on the market today. Most importantly, CBD carries no risk of addiction or abuse.

Is CBD Legal?

In late 2018, Congress passed the Agriculture Improvement Act in what is considered the biggest win in the history of the hemp industry. Colloquially known as the 2018 farm bill, the law removed hemp from the list of controlled substances and legalized it at the federal level which in turn legalized hemp-derived products like CBD.

Why Is the CBD Industry Growing So Fast?

The surge in demand for CBD products began in 2014 with the passing of that year’s version of the farm bill. The 2014 bill lifted some of the strictest restrictions on hemp and allowed certain institutions to grow and administer industrial hemp for research and/or medical purposes. The law also gave the green light to individual states to establish their own regulations on the production and manufacturing of hemp and hemp-derived products.

The bill’s more permissive laws placed the status of hemp in a legal gray area that gave manufacturers and users easier access to CBD. As a result, the public quickly began to experience how CBD could benefit them and their families creating a solid base of customers for the industry to thrive on. This surge in demand did not go unnoticed by lawmakers who saw the economic potential of CBD, eventually leading to its legalization as part of the 2018 Farm Bill.

Because CBD is affordable, requires no prescription, and is safer than prescription medications, the industry gains thousands of new users every day nationwide. It is now estimated that the hemp CBD market could reach $22 billion by 2022 which is why experts have labeled CBD as “the next gold rush.”

How to Capitalize on the Booming CBD Industry

With such expected growth, it is no surprise that many are trying to get into the CBD industry as early as they can. There is no greater evidence of this than the oversaturation of CBD brands in the industry. Unfortunately, starting a CBD brand or investing in one is not something everyone can afford to do, which is why many are turning to CBD affiliate marketing, an arrangement with high earning potential and little to no risk.

What is CBD Affiliate Marketing?

In layman’s terms, affiliate marketing consists of generating sales and/or traffic for a brand in exchange for a commission. Affiliate marketing is an integral part of the CBD industry since a large portion of CBD sales are made online. For those interested in joining the industry, CBD affiliate marketing is a great first step to get involved as it requires no upfront costs.

How Can I Make Money from Affiliate Marketing?

All you need to become an online affiliate is a blog, website, social media channels, or any other form of online presence. Once you find a reliable CBD brand and have partnered with them, your focus should be on creating content that will lead traffic to their products or services. Every button, image, or link on your site aimed at promoting a CBD company will contain a unique affiliate ID. Each time a purchase is made through a link you provide, the company will be alerted, and you will receive a commission. Commissions vary greatly among brands, which is why choosing what brands to work with is extremely important.

How Do I Choose What Brands to Work With?

While some CBD brands offer commissions up to 30%, there is more to choosing a CBD brand than just commission percentage. Remember, you cannot generate income unless you create sales for a brand which is why product quality is crucial in this process.

If you want to maximize your potential for income, collaborate with a reliable CBD brand that offers top quality products. Remember, your reputation as a blogger or influencer may be on the line, as well.

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Canopy Growth to Buy Acreage Holdings for $3.4 Billion

Canadian licensed producer Canopy Growth announced this week its intent to acquire U.S.-based Acreage Holdings in a $3.4 billion deal once cannabis becomes federally legal in the U.S.

According to a MarketWatch report, an insider source said the deal was “98% done.” Part of the deal includes an immediate $300 million payment from Canopy Growth to Acreage Holdings.

The acquisition must be delayed because of Toronto Stock Exchange rules that say publicly listed companies (like Canopy Growth) cannot possess any illegal holdings at the risk of being de-listed, and cannabis remains a federally prohibited business in the U.S.

Acreage Holdings is one of the leading multi-state cannabis operators in the U.S. with its footprint (including pending acquisitions) having recently stretched to 20 different state markets. The company also boasts several high-profile board members, including former Republican Speaker of the House John Boehner and former Massachusetts Gov. Bill Weld.

“Today we announce a complex transaction with a simple objective. Our right to acquire Acreage secures our entrance strategy into the United States as soon as a federally-permissible pathway exists. By combining Acreage’s management team, licenses and assets with Canopy Growth’s intellectual property and brands, there will be tremendous value creation for both companies’ shareholders.” — Bruce Linton, chairman and co-CEO of Canopy Growth, in a press release

“From the first day we created our company, providing exceptional customer care and delivering shareholder value have been our top priorities. This transaction will help accomplish both,” Kevin Murphy — Acreage Holdings’ chairman, CEO, and president — said in the release.

Until cannabis is federally legalized in the U.S. and the deal carried out, the companies will continue to operate independently.

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Los Angeles Files First Civil Suit Against Unlicensed Dispensary

The city of Los Angeles, California is suing Kush Club 20, an unlicensed cannabis dispensary, claiming that it was selling products tainted with paclobutrazol – a fungicide classified as a Type II toxic chemical by the U.S. Environmental Protection Agency, the Los Angeles Times reports. The civil lawsuit is the first in the state to pit a city government against an unlicensed cannabis dispensary.

The city is seeking $20,000 per day the shop was illegally selling to customers; officials say Kush Club 20 was operating for about a year meaning the city could seek up to $7.5 million. City Attorney Mike Feuer noted that the daily penalty has yet to be “tested in court,” adding that the operators “knowingly omitted the true use of the property from the lease,” and said it was being used as a church.

“We apparently as a community care a lot about whether our romaine lettuce is contaminated, and we should. We care a lot about whether we can safely eat at Chipotle. Marijuana buyers should at least exercise that same degree of caution.” – Feuer, at a press conference, via the L.A. Times

Over the last year, city officials reportedly filed 217 criminal cases involving illegal dispensaries or delivery services, charging more than 800 defendants. In all, 113 illegal dispensaries have been shuttered. City and industry leaders hope that the staggering, multi-million-dollar suit will deter illegal operators.

Ruben Honig, executive director of the United Cannabis Business Association, said the organization has been warning the City Attorney “about the potential dangers of pesticides in untested products and the reckless behavior of landlords who indulge in fraudulent leasing schemes.”

Last month, the City Council passed a measure allowing the Department of Water and Power to shut off utilities at illegal dispensaries and Los Angeles police have recently shut down more than 20 illegal operators in the San Fernando Valley.

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Study: Oregon Has Cheapest Cannabis In Legal States, Massachusetts Highest

Legal cannabis in Oregon is the cheapest of the legalized states with an ounce of “high-quality” flower costing an average of $210.75, according to an Oxford Treatment Center study. In Washington, an ounce of high-quality cannabis costs, on average, $232.90, while an ounce is $241.74 in Colorado.

Massachusetts has the highest price for legal states with a taxed-and-regulated market at $341 per-high-quality-ounce, followed by Alaska at $298 per-ounce and Nevada at $270 per ounce.

Among states that have legalized cannabis for adult use but have yet to roll out a regulated industry, Vermont’s average of $346 ranks first, followed by Michigan at $290 per ounce. Washington, D.C. – which has legalized cannabis for adults but does not have a regulated industry – has the highest price in the U.S. at $597.88 per ounce. Lawmakers in Vermont are considering regulation legislation while voters in Michigan approved legalization in 2016 but retail sales have yet to roll out in earnest.

The individual state trends are representative of the prices for “medium-quality” cannabis and the cost of a joint (.66 grams), the report shows.

According to the report, the national average for an ounce of high-quality cannabis is $326 including both legal and illegal markets. The average price for medium quality is $266 per ounce, and the average cost of a joint is $7.59 for high quality and $6.18 for medium quality.

In February, the Oregon Liquor Control Commission reported that the state has 6.5 years of cannabis stock oversupply and the state produced 4.4 million pounds of flower between July 2017 and June 2018. The overstock is the likely cause for the low prices in the state.

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Georgia Gov. Signs Medical Cannabis Expansions Into Law

Georgia Gov. Brian Kemp, a Republican, has signed a bill overhauling the state’s medical cannabis program, allowing in-state production and sales for the low-THC products allowed under the regime, the Newnan Times-Herald reports. The former law allowed registered patients to possess the oil but there was no way to produce or purchase it in the state.

The measure creates the Georgia Access to Medical Cannabis Commission that will oversee production and dispensing licenses for the program. The Georgia Board of Pharmacies will create the rules for pharmacies interested in selling the oil. Notably, the bill allows the University of Georgia and Ft. Valley State University to apply for a federal license to grow cannabis for the program, despite cannabis’ Schedule I status under the Controlled Substances Act.

Jillian Wooton, an advocate whose son suffers from Dravet syndrome, told the Times-Herald that the bill’s passage wouldn’t have happened without the support of Kemp. During her work on Kemp’s campaign, she says he got to know her son and, while she doesn’t know for sure if that helped, she believes “meeting people first-hand has some effect.”

After the bill’s passage earlier this month, Kemp called the bill “the right thing to do,” citing his experiences with young patients and their families.

Previously, Kemp had been opposed to in-state cultivation but he did help guide the newly enacted reforms through the state legislature. Wooton noted that there will be some fine-tuning to the program, “But for the most part, this is what we needed,” she said.

It’s estimated that it will take between 18 to 24 months before Georgia-produced oil is available to patients.

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

The measure does not raise the THC content permitted in medical cannabis products.

End


Dr. Jon Cachat: Training Future Cannabis Lab Techs

Dr. Jon Cachat is the Director of Laboratory Science & Undergraduate Research at Hocking College — the first institute of higher education in Ohio to satisfy the state’s medical cannabis testing lab needs.

In the latest episode of the Ganjapreneur.com Podcast, Dr. Cachat is welcomed back to the show by our host TG Branfalt to discuss the new and rigorous academic program. In this interview, Dr. Cachat describes the wide variety of students who are drawn to the program, how he has honed the curriculum to focus on more than just the chemistry of testing cannabis products, and his perception of how higher education institutions have changed their tune in recent years towards the rapidly growing cannabis industry.

You can tune in to the interview via the player below, or scroll further down to read a full transcript!


Listen to the podcast:


Read the transcript:

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TG Branfalt: Hey there. I’m your host, TG Branfalt, and you’re listening to the Ganjapreneur.com podcast where we try to bring you actionable information and normalize cannabis through the stories of Ganjapreneurs activists and industry stakeholders. Today, I’m joined by Dr. Jon Cachat. He’s the director of laboratory science in undergraduate research at Hocking College. He’s the first two-time guest on the Ganjapreneur.com podcast.

He was instrumental in setting up the college’s program, which has a license to test cannabis under the Ohio medical cannabis program, and help develop the curriculum for a new associate’s degree program at Hocking College in laboratory sciences that will encompass three specialized majors including cannabis lab technician. It’s a mouthful, man. You have a lot going on. How are you?

Jon Cachat: Good. Good, TG. Pleasure to be back, man. I didn’t realize that I was the first double time guest. I feel like I should be getting a green jacket and a cigar or something like that.

TG Branfalt: It’s in the mail. At least, the cigar is. So, as we’ve said, you’ve been on the show before, but for those of you who didn’t listen to that episode, just tell us a bit about your background, man.

Jon Cachat: Yeah. So, I have a PhD in neuroscience. During graduate school, I had a DEA license to obtain and research schedule 1-4 drugs. While I was in Northern California, doing my postdoc at UC Davis, it was about the time that California was transitioning from a collective medical cannabis program to a business license medical program.

And so, I was pretty well involved in the politics and the formation of those political regulations, became involved with a group out there doing cultivation research, looking at making indoor cultivation a little bit more efficient and cost effective than what it was and still is at the time, but also spent a lot of time in politics, and being an Ohioan, I was very closely following the development of the Ohio program, and eventually found myself back in Ohio with a little bit less of a greenhorn, and able to get involved.

TG Branfalt: So, when you were one of the first guests on the podcast, you were working in the private sector, working on a more cultivator face project that you had mentioned. What led you to make the switch to education focus?

Jon Cachat: You know, really, when I got back to Ohio, the headlines at that point said, “No major public institutes of higher education signaling interest in becoming a testing lab.” HP 523, the legislation that kicked off the Ohio Medical Marijuana Control Program, mandated that, for the first year, testing was to be done at an institute of higher education, a public institute.

I had experience in the cannabis industry, I had a knowledge and just passion for cannabis and cannabis culture, and also happened to have a PHD in neuroscience. So really, no universities had decided to step up. I was someone who was qualified to take charge of a testing lab. I knew Ohio State wasn’t gonna do it. I knew the University Of Cincinnati wasn’t gonna do it.

My alma mater, as a private liberal arts college, they weren’t even eligible. And so really, it was a bit of a traveling roadshow to different community colleges, starting up north and eventually landing down here at Hocking to say, “Look. There are no testing labs. The future of the program is unknown and in jeopardy at this point. Would you be interested in applying to be a testing lab?”

Hocking was really quickly able to get the provost and the president together, and I’ll never forget what the president said after I had sort of given the spiel. She looked down, and then looked up at everybody in the room and basically said, “Look. It doesn’t really matter what each of us personally think about the use of cannabis in the medicinal way, the state of Ohio has set a mandate that public institutes of higher education need to perform independent third party testings. We should at least give it a shot.”

So from there basically, I was able to develop the application, get it turned in in time, and we are here today.

TG Branfalt: That’s really interesting that not all colleges were qualified to enter the program. What were some of the challenges for you personally in helping to create the new degree program specifically for cannabis lab technicians, and what’s in that curriculum?

Jon Cachat: Yeah. Yeah, that’s a great question. You know, really, in terms of what other universities were saying, so this idea of, “Should we participate in the cannabis industry?” Two years ago … I’m very familiar with institutes of higher education. I’ve been in several across the country for most of my adult life.

There’s a term called analysis paralysis, and so there was a perceived risk that if we touched this plant, the federal government may take away all of our federal research money, they may cut our ability to offer financial aid to students, and the emphasis on there is perceived risk because that’s never happened.

But just the potential of that being on the table would lead to so much paralysis and analyzing all the different options that most universities just walk away. So now, in terms of the course work, yeah, it was actually pretty challenging if you go from it of the angle that a course like this in cannabis has never existed before, and I should say curriculum rather than a course.

You know, there are a number of universities, Canadian, Colorado, some in California now, some even in Ohio. For example, The Ohio State University law school has one course where they will review cannabis in its relation to tax law, but what we developed here at Hocking, what I developed here at Hocking, is actually a full two year program curriculum where, at the end, students will walk away with an associate’s degree in lab sciences with a major in cannabis lab technician.

So, what would that look like? Well obviously, they need experience on the analytical chemistry portion of it, and we make no qualms about it. While cannabis is involved in this program, and we will be analyzing cannabis, it’s a very hardcore analytical chemistry program. We’re learning how to run high pressure liquid chromatography. We’re learning how to run inductively coupled mass spectrometers to test for heavy metals.

So obviously, you need that type of course work which consists of both classroom time, to get the theory behind the instrumentation, but then also lab time, hands-on time with the exact instruments that are being used in our commercial cannabis lab, just in an educational lab. And while we’re not able to take, obviously, cannabis products that are in the products supply line over to the educational lab, we are able to use standards, and extracts, because it’s very, very important for the students to look at the same chromatography peaks, the same sort of patterns over, and over, and over again.

I mean, a particular … You know, I got a question. “What’s the test gonna be like?” In the lab, we’ll have, let’s say, 10 samples, and we want to analyze the cannabinoid content of what’s in these 10 liquid samples. Unbeknownst to the students, I’ve spiked three of them with aspirin and caffeine. I’ll know who’s paying attention, I’ll know who’s gonna make a great cannabis lab tech. When they call me over and say, “This peak shouldn’t be here. I don’t know what this peak is.”, and it’s like, “Okay. Now, you’re finally getting it. You got it.”

So, there’s the chemistry angle of the curriculum for this major. Beyond that, I wanted to make these students prepared just to work in the cannabis industry in general, and so we’re gonna provide an overview of humans’ history with this plant. I call it “Cannabis Humans, and Our Forgotten History,” because we are lucky enough to have the Cannabis Museum, Cannabismuseum.com, down the street for us. It’s the largest private collection of old pharmacy mixing jars from compounding pharmacies. They have things that go back as far as 1887, hand-written prescriptions from doctors in Texas for two grams of cannabis indica to help with insomnia.

So, where the cannabis industry has come from, what’s our relationship with this plant in humanity’s perspective, and where are we going? And then, the last important component that is important for a lab tech, yes, but important for anybody in the cannabis industry in general, is understanding the economics of being a cultivator.

So, what’s their business model look like? What are the inputs that go into growing plants successfully, of high quality, repeatedly, in our new modern regulated system? What does a grower stay up at night worrying about? What are microclimates, and how do microclimates lead to situations where eventually, downstream, they’re gonna end up failing one of the tests and have to destroy that whole crop?

The same thing goes for processors. What’s their business model? What are they starting with as raw material? What are the steps that goes through to get down to a medicinal quality oil? And then, what are their goals in terms of using that oil and turning it into different products?

Because ultimately, as a lab tech, you’re going out to these operations and you’re spending time with the grower, who has spent the last couple months, certainly the last three or four weeks of flowering, with these plants every day, and has an intimate relationship with them, and he’s talking to you about his concerns.

He’s asking you questions about, “I might’ve seen a little PM over here. What do you think?” And so, it’s important for the lab’s tech, and the students that are gonna be coming out of this program, to have an appreciation and be able to put themselves in someone else’s shoes for a day to help them achieve their goals while also being very well versed in the regulations and the analytical chemistry involved in cannabis testing.

TG Branfalt: I mean, it’s no surprise. I know you are really a sort of deep thinker and that you’ve put a lot of thought into this. You know, you’ve spent most of your adult life in higher education. I have a master’s degree. I currently teach at a New York State school, university, and I can tell you that, during my interview, during my first semester, I didn’t really mention much my relationship to the cannabis industry as a journalist, as someone who has covered it for a long time, because that stigma still exists.

Where I’m at, upstate New York, it’s a little more conservative. How important do you think it is that a traditional institute of higher education has this program focused on the cannabis industry?

Jon Cachat: You know, higher education is in the business of preparing students for a career, for their job, and so, there’s clearly a demand in both … across all ages, both young and old students, to try to find an avenue into the cannabis industry, and even up to today really, the best way to get experience in the cannabis industry is break the law left and right and put you, and your family, and your finances, and your children, and everything, at such a risk that it really becomes difficult for someone who …

Let’s say they are retiring from their job, and they were great in the manufacturing floor, but they know that the cannabis labs are driving around the state every day, and they want to get involved, but he doesn’t know much about cannabis. It is really the mission of traditional institutes of higher education to provide pathways to prosperity for these individuals. I mean, down here in southern Ohio is a great example.

You know, there’s nothing wrong with being a car mechanic, and if you’re a good car mechanic, I love you, and it’s an honorable profession, but you could now, conceivably, have a career in biomedical research, performing graduate level analytical chemistry after a two year program and a lot of hands-on experience at this program at Hocking College.

And I will say this, too, just to wrap. After Hocking College sort of plowed the way through, I get about an email a week from different institutes of higher education, Kentucky, West Virginia, up in Canada, where they’re saying, “We have a medical program coming online. We saw what you guys did, and of course, our students are very interested in preparing themselves for this industry. Can you tell us how you did it? Can you tell us how cannabis and higher education can exist together in a way where there’s mutual benefits all around?”

TG Branfalt: So, you’ve mentioned, a couple of times, the students. Tell me about the students that you’re seeing in this program. Are they mostly traditional sort of fresh out of high school types, or are they your non-traditional maybe part-time adult learners?

Jon Cachat: It’s a good question, and the interest has been across the board. Broadly speaking, there are high school graduates who are going off to college for the first time and want to jump on this as soon as they can. The other half are individuals with degrees already. Maybe they already have a bachelor of science, maybe they already have … they’re a certified nurse practitioner, or they’re a medical lab technician. They already have an accredited degree in an advanced field of study, but they want to come back. They want to get the cannabis experience so they can get lined up for a job in the cannabis space.

And so, it’s been real interesting for me to figure out how I can take a program, and these students who are coming in at vastly different levels of knowledge and experience, and get them through the end result, which really, for me, is positive feedback from employers down the road that the people coming out of this program are not only well prepared, but they are fantastic, and they’ve been able to help our lab over several hurdles or small fires that pop up daily.

Generally … I mean, we would get emails from students in Texas. I’ve gotten emails from students in Washington State. I really did have a 68 year old man call me who said he hasn’t saved enough for retirement and he wants to know how to get into the program.

TG Branfalt: No way.

Jon Cachat: And so, interest is coming all over … across the board, all over the nation. Really, what I try to do right off the bat, is to make sure that they’re clear that this is an analytical chemistry program in which cannabis is the primary target analyte. There will be no organoleptic testing by any means, organoleptic meaning of course testing a product with your five senses.

TG Branfalt: So, you mentioned earlier, at the start, about these other sort of canna-centric schools that are in California, and Colorado, and so forth. Why would you recommend that students enroll in a program like yours or your program instead of other cannabis-focused institutions? And are there benefits to those other less traditional schools?

Jon Cachat: Of course. Yes, yes. So, there are several entities, one here in Ohio, which I sit on the advisory board of. The Cleveland School of Cannabis, for example, they offer certificate programs after … It’s a short program, I think maybe over the course of six to eight weeks, and then you can end up getting a certificate from them in cultivation, or you could end up getting a certificate from them in processing, or working in the dispensary.

Those schools are, first off, responding to a demand of people who want to be educated to work in the industry, but you’ll notice, the traditional institutes of higher education, we are training people to be cannabis lab technicians or to work in the analytical chemistry angle of it.

You could work at a cultivator, or a processor who has this instrumentation on site, but I think it’s gonna be some time before we see a traditional academic institution actually teaching cannabis cultivation, or actually teaching how to extract with butane or some other hydrocarbon, extract that down into an oil, and then make that oil into products.

Those are, I think, a little bit too much. I don’t know what the legal term would be, but maybe aiding and abetting federal rule breaking. But they’re very comfortable with the analytical chemistry part of it. So, you can … This is an accredited degree program here at Hocking. You will walk away with an associate’s degree in cannabis lab technician. That’s a two-year program.

My job is to make sure that that program is rigorous enough so when you apply to be a cannabis lab tech, and they are saying that, “We want a bachelor’s, or master’s, or PHD”, you can say, “Well, I’ve been in a cannabis lab for a year and a half. I know when the ICP-MS goes down and the vent’s messed up that it’s really the drainpipe. It’s not really the vent.” That knowledge is invaluable.

But if you know for sure that you want to be on the cultivation side of things, dealing with the plants, our program will prepare you to have those conversations, but you’re not getting the hands-on nitty gritty details of how that process works. So I hope I made that clear, but there’s different avenues in which educational entities are targeting things now, and chemistry is the … I don’t want to say the safest lane, but it’s one of the lanes that requires the finesse, and experience, and educational philosophy that you would find in a traditional two or four year education beyond that of a certificate program.

TG Branfalt: So, I want to ask you sort of a broad question here. You went around trying to find places to help set up a degree program in Ohio. You ultimately landed on one. You mentioned that we’re very far away from seeing cultivation for probably legal reasons as opposed to cultural reasons.

Jon Cachat: Right.

TG Branfalt: In your experience, do you think that there’s still a cannabias in higher education, that it’s something that we don’t want to talk about with students, that department chairs don’t talk about sort of the culture aspect of it with their faculty, and so on and so forth?

Jon Cachat: Yeah. You know, it’s interesting. I don’t know if I would call it a cannabias. I would say more like cannaphobic. They’re afraid. They’re afraid to touch it. I mean, for so long, it has been a … Even at the schools, an issue that law enforcement handles, not the provost and dean of academic affairs. I don’t think this is unique to higher education, but there is just, in large, people who have preconceived notions of what cannabis is, and what it does, and the people who use it, and who they are, and how they behave.

But even since last we spoke, you could see that sort of getting whittled away day by day, and really, it’s conversation by conversation. I tell everybody, “If you’re talking to someone, call it cannabis. Don’t call it marijuana. Marijuana is some made up term. We’re actually using its scientific name.”

When I first started here at the school, down here in southern Ohio, there was a lot of … Once you get past the sort of canna-stoner jokes, and then you start getting into the real science of it, they’re like, “Oh, wait. This kid’s not playing around. He’s actually serious about this.” Then there’s also sort of just responding to, “Oh, well, I know this medical is just a Trojan horse in order to get to adult use, and no one’s really benefiting medically.”

For that reason, and that reason alone, I purchased several copies of the most recent compendium of the medical uses of cannabis, about a 600 page book. I mean, it’s like a bible. So, whenever I get that question, I can just throw that book at them and say, “Come back to me after you’ve read it.”

TG Branfalt: And injure them in the process. With Hocking, are you guys partnering with private companies as part of your programs?

Jon Cachat: Yeah, definitely. So I mean, the one that comes to mind first is Shimadzu. So, all of our analytical instrumentation was provided by Shimadzu. They have been a wonderful partner to have, especially in helping us get the lab up and running quickly. They were one of the first major analytical chemistry equipment manufacturers to service and get into cannabis testing labs, so with that comes a lot of experience in tuning the LC triple quad to detect myclobutanil and cynipidae, and 20 other pesticides along with mycotoxins and the fungus.

And so, we were really able to benefit from the experience that they’ve gotten in setting up other cannabis labs to ensure that the signal to noise ratios, and the recovery percentages that we’re getting, were right on track right off the bat right away, and if we do have something that is slightly off, that we’re able to call one of their techs directly, because we are a Shimadzu partner analytical lab with them, and so they’re very much invested in our success as well.

Beyond that, there are medical device manufacturers down here in southeast Ohio who are interested in production line biochemists. They make things like pregnancy tests and other medical testing kits, so there are definitely, outside of the cannabis industry, companies who are looking for staff and need a lab sciences coursework for the education.

We’re also partnering with groups like PathogenDx, and Medicinal Genomics. These companies make genetic based, PCR based, microbial tests, so in our tests that we’re testing for mold. Right now, in order to test for mold, we have to swab the sample onto a cell culture plate and put it in an incubator for 24 hours, and then check after 48, and give it an enrichment, and put it in for another 48. It could take up to 90 hours plus, and it’s really the biggest bottleneck in the cannabis analytical lab pipeline.

By using the genetic methods such as those put out by Pathogen and Medicinal, we’re able to cut that time down to about 6 hours, but we are also able to genetically identify the presence of a mold or a fungus, rather than just looking at the cell count and saying, “Well, there’s blue growth here with a red air bubble, and that indicates 100 colonies of enterobacteria.”

You know, the bacterias can be a lot different, and depending on what actually is there, or if the operation is using some sort of composting teas, which is very popular outdoor and in this sort of black market transition over. So, we’re working with those private kit providers with the DNA methods to ensure that those results that come out match those on the plate, and it’s some RND testing for them, but then also to go to the state and say, “Look, these are valid methods for detecting microbial growth, if not more accurate than what the plates are, and it would be worth everybody’s time for us to switch over.”

So, yeah. There are a number of private-public partnerships that we have going on. The lab, of course, itself is owned entirely by the school. The revenue streams that come in from the lab are then being able to go back into the general fund and support any number, the whole catalog, of programs here at the college. But the manufacturers know, especially that we have the educational component, people like to purchase the machines that they were trained on, and so getting them in front of the students is of equal value to everyone, not to mention the students who are being trained on some of the latest and greatest analytical instrumentation.

TG Branfalt: So, a lot of colleges throughout the country are facing sort of budget cuts, budget crises, and so in order to set up one of these programs … I mean, obviously, it costs some money. How could other interested educators sort of create these partnerships? What was that process like? Did they reach out to you? Did you reach out to them?

Jon Cachat: It was mostly a lot of outreach on my end. Having spent so much time in academia, particularly in grad school, for example. When we were giving zebrafish LSD and trying to discern their behavior, whether it was an anxiety-like state or a more sort of calm state, one of the ways that I developed to do that was to use USB webcameras and then plug those videos into animal behavioral tracking software, and so, at that point, no one was doing that with zebrafish.

The software was designed to be working with mice and rodents, and so I have a lot of experience working on software, and adapting software into the laboratory setting in new ways, and so I knew what it was like to contact those private companies as an academic institution, and discuss to them what we have going on and if they would like to be involved.

For other universities, they should also be intimately familiar with that. There are some benefits, particularly when it comes to negotiating pricing, and service contracts, and all of that that the manufacturers and private companies are familiar with the benefits and the value of working very closely with higher education.

The other institutions that have called me and asked how they could get their foot in the door, really, it’s starting to get familiar with your regulations. What does the testing lab actually look like in your state? I can’t tell you. I could tell you all about Ohio, California, but not Kentucky. I didn’t even know Kentucky had a program.

So, getting involved, reading those regulations, attending any and all of the public meetings that the governments is hosting here in Ohio, they have a monthly meeting in Columbus where the Medical Marijuana Advisory Board meets. You know, it probably wouldn’t be a bad idea as well to attend local meetings, your local NORML chapter, or if there’s an ASA program at your school, or Students for Sensible Drug Policy, that is where you’re gonna start finding champions, those who understand cannabis and cannabis culture, but also have a technical enough background or experience to where you want to start recruiting those people and getting them on your side.

I think Dr. Young often says that, when asked how this all came about at Hocking, she looked at me and said, “JC was here, and he knew what he was doing.” Whether that’s true or not, we’ve made it this far. But really, starting early, getting out there, especially with departments of higher eds, if you’re planning on doing a curriculum. You surely have a relationship with them, but starting to float the idea of some cannabis curriculum that might be being submitted, you’re lucky that you have Hocking to look to to say, “Well, this is how they did it.” But it really is a lot of discussions and not putting things off to the last minute, is what is eventually gonna help you in the marathon. It’s not a race.

TG Branfalt: So, you touched on policy a minute ago. Let’s talk a little bit about midwest policy. Michigan legalized cannabis for adult use. Illinois governor has said he wanted to actually beat Michigan to roll out their own program. Ohio’s in the midwest obviously. How long, in your opinion, until officials in Ohio seriously take a lot at recreational use considering what’s going on around them?

Jon Cachat: Yeah, yeah. That’s very interesting. I think actually Pennsylvania announced some intent for adult use laws here pretty quickly. I think, and I think this is very understandably so, the regulators in Ohio, especially since we just had a new governor come into place, and the delays that weren’t unique to Ohio, but we’re basically at a point now where the entire program has actually only been up and running, with products on the shelves, for three or four weeks.

We finally got all the pieces connected, and we have product moving from cultivators to dispensary shelves, and I know that there are considerations and amendments just to improve the current laws that we have on the book. I know that, at least in the new governor’s office, there is sort of an acceptance of the medical laws, but very little interest in expanding those laws over to adult use, but what I will say, I know several groups, and I’m pretty sure there’s one out of Athens, that has adult use ballot language ready to get on the ballot in 2020, and if history is any judge, the thing that will get Ohio legislators moving very quickly is a ballot initiative that the people put forth.

It’s the same thing that happened with our medical laws here. We had the heralded and infamous monopoly bill for the medical laws here in Ohio. That got voted down quickly, and then all of the sudden, the Ohio legislature passed a medical cannabis program at lightning speed, faster than any states has ever done it before.

So, it’ll be interesting to see how everything falls out. You know, it’s also interesting to consider the fact now that we have several multimillion dollar businesses that have spent a lot of money, and a lot of time, and a lot of effort to be operational in the medical market, and are those business interests not interested in adult use? Or, are they interested in adult use? I think, and understandably so, that in the legislature, we’re not gonna see any movement on adult use unless the people of Ohio force the issue, and ultimately, I think it’s gonna come, but I do think that I would like to see the medical program here in Ohio …

Maybe 30% of the production line and production capacity is actually moving right now. A year from now, by the time we’re in the summer, we’ll see a lot more product moving through the supply chain, we’ll see prices come down, and frankly, I hope we see the trend where the average age of patients at dispensaries is 50+, and so those people really stand to benefit a lot. Of course, the appetite’s there. I don’t know if the political will will be there until the people force the issue. I would certainly say it’s not out of the question, but it’s hard to predict at this point.

TG Branfalt: So, what advice do you have for potential students seeking to enter this space? And what about educators?

Jon Cachat: Yeah, that’s interesting. That’s interesting. Well, like I said at the beginning, the advice to potential students is, “Yes. This is a cannabis program, but more than that, it is a very rigorous analytical chemistry program, and so if you don’t have the innate curiosity in how things work, or sort of an engineering tinkering mind, or math isn’t your thing, or some level of physics just drives you crazy, you’re probably not gonna make it through the entire program.”

I learned, at other universities, a lot of freshman will come in their first year and say they want a major in psychology. It’s one of the most popular freshman choices, first year choices. In order to handle that, psychology 101 is a pretty difficult course, by design, to make sure that the people didn’t just willy nilly pick psychology, but are willing to put in the work to achieve what is a relatively difficult degree.

So, my advice to students is that be aware that this is a rigorous program, and it’s going to remain that way because you need those skills and that experience in order to get a position in this industry. The other thing I guess I would say is that, for educators, your goal is to prepare students for jobs in the workforce.

So, one of the things I did mention earlier, if you do have legal cannabis operations operating, it would serve you very well to ask if you could set up a meeting with them onsite. Go through their processes, make those connections with where the potential employers are in your state, and understand what they want from a student coming out and looking for a job at their facility, for example.

The last thing I’ll leave you with, too, and I do this with all of my interviews for the lab, or anyone that calls me from a school looking to set up an educational program like this. The very first question is sort of like when the stewardess goes around and checks the exit doors, and you gotta give them a visual nod and confirmation that you’re willing to open the door should you need to.

You just say flatly, “We’re all gonna be felons. Are you prepared to break federal law?”, and you say yes, you move on, and you don’t discuss it again until … Hopefully, you never need to, but it’s just something that you have to accept, live with, and hopefully your support for state’s rights, and the ability for the states to regulate the system, is good enough.

TG Branfalt: Is that when most people hang up on you?

Jon Cachat: It’s where most people sort of just stare at me like, “Wait a second. Is he serious, or is he joking around?”, and this is very much serious. It’s not … I guess it’s not something to be proud of in one way, but in another way, the cannabis industry has always been a group of outlaws, and while we’re legal now, we’re still breaking a few laws just by technicality.

But hopefully, the more people that get in, the more students that are educated in this, the more and more we’ll push back against that cannabias or cannaphobia, and get to a point where everything should be.

TG Branfalt: So, where can people find out more about you, your program? How can they get in touch with you if they’re seeking answers to their educational questions?

Jon Cachat: So, you can reach the lab at lab@Hocking.edu. Hocking is spelled H-O-C-K-I-N-G. I will say this. Given the interest in the program, my inbox is just dead on arrival, so for anybody who has maybe already emailed me, or is hoping to learn more about the program, please don’t take my lack of response personally at all, it’s just that this is a very popular program and there’s a lot of students that are interested.

I’m trying to pull up the laboratory sciences. Yeah, so if you go to Hocking.edu/laboratory-sciences, that’s where you can see the full curriculum for the program, a little bit more about the chemical and medical laboratory programs, and reach out to admissions or enrollment to learn about how you can get started.

The first class is actually starting March 10th, and then lastly, you can find us on social media @Hockinglabsci. So, H-O-C-K-I-N-G, L-A-B, S-C-I, and that’s on Twitter and Instagram.

TG Branfalt: One more quick question. Do you guys already have a wait list?

Jon Cachat: We have not set up a wait list. There is a cap on the lecture classes at 100. There’s a cap on the laboratory classes at 25. My mailing list is currently at 207, and I’m pretty sure we’ve got about 30 enrolled thus far. March 10th is the first Intro to Lab Sciences, so that would be for students both interested in cannabis chemical and medical lab technicians.

The cannabis specific courses, the first year for that will be in the Fall of 2019, and then for those of you that have a bachelor’s degree or other sort of advanced training, if your credits transfer, you can start in the second year of courses, which will be going in Fall of 2020.

TG Branfalt: Well, Dr. John Cachat, man, it’s really great to have you back. Congratulations on all of your success with this program and just in the industry in general. It’s always great to have a chat with you, and I know that you’re super busy, so it’s a good thing that I have your cell phone number, because I wouldn’t have been able to get in contact with you had I sent you an email.

Jon Cachat: Of course. Of course, TG. Always a pleasure to chat, and I guess I owe you a beer this time.

TG Branfalt: Next time you come up to the Adirondacks. 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 on iTunes and Google Play. This episode was engineered by TRIM Media House. I’ve been your host, TG Branfalt.

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Carl’s Jr. to Offer CBD-Infused Burger on 4/20

Fast food chain Carl’s Jr. is planning to sell a CBD-infused burger on April 20 at its Colorado Blvd restaurant in Denver, Colorado, CNBC reports. The so-called Rocky Mountain High: Cheeseburger Delight is topped with the chain’s Santa Fe Sauce infused with 5 milligrams of CBD along with two beef patties, pickled jalapenos, pepper jack cheese, and waffle fries.

A 2019 National Restaurant Association survey found three out of four chefs named CBD and cannabis-infused foods as the year’s hot industry trend despite the federal Food & Drug Administration barring CBD from being included in foods and drinks. The agency is set to hold a hearing on CBD next month. Last year, regulators in Massachusetts prevented a local brewer from adding the cannabinoid to beer.

Patty Trevino, Carl’s Jr.’s senior vice president of brand marketing, said “bringing hot restaurant trends to a quick service menu” is at the core of the company’s strategy.

“From our early introduction into plant-based options to bringing the rare indulgence of truffles to our menu with the new Bacon Truffle Angus Burger, our customers have come to expect innovative and unique menu offerings, and we’re thrilled to be the first quick service restaurant to be testing CBD infused options.” – Trevino, in a statement, via Fox Business

Trevino told Fox Business that the company would consider expanding the burger, which will have a $4.20 price tag, if the Denver test goes well.

Carl’s Jr. is the latest non-cannabis corporate company to announce interest in CBD following last year’s federal hemp legalization. Last month, pharmacy chains Walgreens and CVS announced they would sell select CBD products.

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Washington Lawmakers Approve Bill Expunging 69,000 Cannabis Convictions

The Washington state House of Representatives has approved a bill expunging nearly 69,000 misdemeanor cannabis convictions, according to The News Tribune.

The bill, which originated in the Senate, passed the House in a 69-29 vote on Tuesday and now returns to the Senate for the reconciliation of one amendment added by state representatives. The House amendment specifies that the bill would also apply to misdemeanor cannabis convictions resulted from municipal rules in addition to those charges brought under state law.

If re-approved by the Senate, the bill will head to Gov. Jay Inslee’s desk for his signature.

“This proved you can do transformative justice reform issues and it’s a bipartisan thing. Our unjust laws of the past shouldn’t hold you back from being successful in the future.” — Bill sponsor state Sen. Joe Nguyen (D)

The Washington State Patrol said that 58,864 individuals with 68,543 misdemeanor cannabis convictions would be eligible for expungement under the proposal. Individuals with cleared convictions would be able to write on job and housing applications that they were never convicted of those cannabis-related crimes.

The bill was lobbied for vigorously by industry stakeholders in Washington, including by members of The Cannabis Alliance, a non-profit organization (of which Ganjapreneur is a supporting member) dedicated to the advancement of a vital, ethical, and sustainable cannabis industry.

“The Alliance worked really hard prior to session in asking Fitzgibbon to bring up this issue once again,” said Executive Director Lara Kaminsky. “We also worked closely with Nguyen to help him get the right energy behind the bill, providing testimony in hearings along the way. We put our time, energy and resources behind this effort because our membership voted ‘Expunging records for cannabis convictions’ as their #2 priority for this legislative session.”

Earlier this year, at an event coordinated by The Cannabis Alliance, Washington Gov. Jay Inslee (D) said he would pardon a collection of cannabis convicts, but the Legislature’s proposal would go much further than the governor’s plan.

State Rep. Joe Fitzgibbon (D) — who sponsored the House version of the bill — has been pushing for similar legislation ever since voters chose in 2012 to end cannabis prohibition via a successful voter initiative.

“The King and Pierce County prosecutors chose [then] to dismiss all pending marijuana misdemeanor possession charges in their jurisdictions. I thought that was a great step,” Rep. Fitzgibbon said in a statement. “The voters no longer felt the possession of small amounts of marijuana should be a crime for people 21 and over.”

Sen. Nguyen and Rep. Fitzgibbon appeared together in a video on the senator’s Facebook page discussing the bill’s successful passage.

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Study: 65% of Cannabis Consumers Prefer It to Alcohol

A recent study from New Frontier Data suggests that adults in legal states might be shifting from alcohol to cannabis with 65 percent of survey respondents saying they prefer cannabis to alcohol if given a choice. Another 45 percent indicated they would likely replace some of their drinking with cannabis in the future, while 47 percent said their drinking habits had not changed.

Slightly less than a third (31 percent) said they drink less than they used to with 23 percent saying they drink more. New Frontier Data CEO Giadha Aguirre de Carcer said it’s too soon to know “whether such a shift is indicative of potential sustained behavior over time or a short-term spur in consumption.”

“Young adults approaching legal drinking age represent new potential consumers for alcohol brands, but New Frontier Data’s research reveals a noticeable shift in younger generations’ preference of cannabis over alcohol.” – Aguirre de Carcer, in a statement

Last year, MarketWatch reported binge drinking rates among college students had fallen from 4.3 percent in 2016 to 2.2 percent – down from 6.5 percent in 1980 – and that the majority of the 55 million cannabis users in the U.S. were millennials.

Additionally, at least one preliminary study by Scripps Research Institute found that CBD could help reduce the risk of relapse by alcoholics and there are countless anecdotal reports of people using cannabis as an exit drug for opioids – so much so that several states have added opioid dependency to their qualifying conditions list.

Frontier Data Chief Knowledge Officer John Kagia said that 72 percent of Americans under 35 now support cannabis legalization, adding “the growing acceptance and legalization of cannabis is a durable generational trend that the state’s famed wine and beer industries should be paying very close attention to.”

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