Boston, Massachusetts

Massachusetts Bill Would Protect Jobs of Cannabis Users

A Massachusetts bill proposed by state Sen. Jason Lewis (D) would prevent cannabis consumer workers from being fired for using the plant, The Boston Globe reports.

Massachusetts legalized in 2016, though delays in establishing a regulated seed-to-sale program meant that the state’s actual sales launch only took place a few weeks ago, just before Thanksgiving. The program is now underway, with additional retailers being added regularly.

Workers who use cannabis, however, can still be fired from their jobs in Massachusetts, even if they’re not intoxicated at work.

State Sen. Lewis’ legislation would prevent the firing of a worker who uses cannabis in their private home and time, moving cannabis as a substance to be more in line with alcohol. Employers who contract with the federal government, however, would be exempted from the new law, pending the end of federal prohibition.

“This is not intended to be a blanket protection for people to use cannabis whenever and wherever they like. But as long as they’re not impaired and it’s not impacting their work, employers should not be able to discriminate against them in hiring or promotion, and companies certainly should not be terminating people simply because they legally use marijuana on their own time.” — Massachusetts state Sen. Jason Lewis (D), via The Boston Globe

The new bill is expected to be considered by lawmakers during the 2019 session. It’s unclear how lawmakers will react to the new legislation, despite its common-sense overtones.

Cannabis sales, however, have thrived so far in Massachusetts.

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Germany Delays Medical Cannabis Roll-Out

The licensing of medical cannabis cultivators and distributors in Germany will be delayed for at least another six months, Deutsche Welle reports.

Technically, medical cannabis has been legal via prescriptions in Germany since 2017, but the Federal Ministry of Health has, so far, not acted on the legislation; officials haven’t issued a single cultivation license in the almost two years since the law was passed.

According to the report, the Federal Institute for Drugs and Medical Devices said it needed more time to establish the rules that will eventually oversee the nation’s medical cannabis program.

The agency’s statement was prompted by an official inquiry from opposition politicians in the pro-business Free Democratic Party (FDP) which has criticized the delays. The FDP is joined by two other German opposition parties in calling for the full legalization of cannabis.

FDP lawmaker Wieland Schinnenburg said that the government was creating a “deliberate obstruction” to the launch of Germany’s medical cannabis program and called it a “catastrophe” for German businesses.

With licenses expected sometime during the second quarter of 2019, the soonest that patients in Germany can expect non-imported commercial medical cannabis products is likely early 2020.

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Netherlands Researcher

Study: THC Effective Treatment for Fibromyalgia Pain

A study conducted in the Netherlands has found that THC-rich medical cannabis is an effective treatment for pain caused by fibromyalgia, according to The Growth Op.

The study was conducted by Leiden University Medical Center and pharma company Bedrocan International in the Netherlands. Interestingly, researchers found that cannabis extracts containing purely CBD were not effective; instead, the evidence suggests that cannabis high in THC is most helpful.

The study compared high-THC extracts against placebo as well as CBD products at several times during the progression of fibromyalgia in 20 patients, via a vaporizer.

“The outcome is very important for patients who suffer from fibromyalgia. Now we have the serious clinical evidence that medical doctors are asking for when prescribing our products and that health insurance companies want to have, to legitimize reimbursement.” — Tjalling Erkelens, CEO of Bedrocan, via the Growth Op

It’s clear in the study that THC specifically is useful for the treatment of fibromyalgia, which affects muscles and tendons specifically. Erkelens said the next phase of testing will be comparing THC-containing products to opiates to determine if cannabis can be used to replace the use of those addictive painkillers.

Another recent study has shown that opioids are largely ineffective against chronic pain. Paired with the new Netherlands study, it seems hopeful that future studies regarding the issue will find that cannabis can be a successful off-ramp for opioid use.

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Tel Aviv, Israel

Israel Approves Cannabis Exports

The Knesset, Israel’s parliament, unanimously approved the export of medical cannabis products on Tuesday, The Washington Post reports.

Israel is a leading producer of medical cannabis products, but laws attempting to legalize export of the plant and its derivatives have struggled to pass the Knesset for years due to concerns among some lawmakers about potential diversion to the unregulated market.

Currently, Canada and the Netherlands are the only countries that allow for the export of medical cannabis products.

Israel-based medical cannabis company iCAN predicts the international market for Israeli cannabis will reach $33 billion in the next five years. Cannabis company shares in Israel rose nearly 10 percent following Tuesday’s announcement.

“This is a long overdue but welcome development. … Israel, already the most advanced nation in cannabis R&D will now be able to produce and market cannabis and cannabis-based products that will help millions of people suffering from illnesses including cancer, MS, Parkinson’s, sleep disorders, epilepsy, and PTSD, to name just a few.” — Saul Kaye, CEO of iCAN, in a statement

The new law includes language placing police in a supervisory role in the licensing of medical cannabis producers.

Israel‘s executive cabinet is expected to approve the law.

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FDA Begins Planning CBD Regulatory Framework

FDA Commissioner Scott Gottlieb said that the organization is beginning the process of creating a regulatory framework for the marketing and interstate sales of CBD products, according to a CNBC report.

President Trump’s signature on the 2018 Farm Bill last week technically legalized industrial hemp and hemp products. The bill, however, placed CBD products under the FDA’s jurisdiction.

“We recognize the potential opportunities that cannabis or cannabis-derived compounds could offer and acknowledge the significant interest in these possibilities. We’re committed to pursuing an efficient regulatory framework for allowing product developers that meet the requirements under our authorities to lawfully market these types of products.” — Scott Gottlieb, FDA Commissioner, via CNBC

The FDA plans to hold public meetings soon seeking input on how best to establish the federal CBD marketplace.

“While products containing cannabis and cannabis-derived compounds remain subject to the FDA’s authorities and requirements,” Gottlieb said, “the FDA will continue to take steps to make the pathways for the lawful marketing of these products more efficient.”

Following the farm bill’s passage, a storm of industrial hemp CBD products is expected, perhaps even before the FDA can deploy new regulations.

Meanwhile, the FDA is expected to continue issuing warning letters to CBD companies who make claims that are not backed by federally recognized research.

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Edibles

Canada Releases Draft Rules for Edibles, Topicals

Health Canada has announced regulations to allow the production and distribution of cannabis edibles and topicals, the CBC reports.

The regulations span everything from allowed additives, to packaging, to the types of foods that can be infused with cannabinoids. The rules also establish a THC cap for each serving.

If the rules are successfully adopted, edibles should be available in the Canadian market by October 17, 2019 — exactly one year after adult-use legalization took effect.

“Assuming the trend is consistent in Canada, the new classes of cannabis will likely represent over time a significant portion of the total market.” — Excerpt from the new regulations, via the CBC

The regulations list many expected standards for producers:

  • Products must not require refrigeration or freezing.
  • Ingredients and expiration dates must be on each package, as well as other nutrition information
  • The use of caffeine as an additive is prohibited, though natural coffee or tea products are allowed
  • No sugars or sweeteners are allowed, though flavor compounds have been approved
  • Flavors that may be appealing to children, like dessert flavors or other classic sweets, are not allowed to appear on the packaging
  • Meat products are not allowed, except for dried meats from certain producers
  • Eyedrops or needles are not allowed

Officials will now hold discussions across Canada regarding the new regulations. The rules require a 60-day period of public comment before they can be finalized.

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Bangkok, Thailand

Thailand Parliament Approves Medical Cannabis

On Tuesday, Thailand’s parliament voted to legalize medical cannabis in the country, according to the BBC.

Southeast Asia is known for some of the harshest drug penalties on the planet. Thailand, however, is the first country in the region to move toward bucking that trend with the approval of medical cannabis. The same law also applies to kratom, another medicinal plant that is often used as an alternative to opiates.

“This is a New Year’s gift from the National Legislative Assembly to the government and the Thai people.” — Somchai Sawangkarn, chairman of the legislative committee behind the new law, via the BBC

Under the new law, Thai patients will be allowed to carry quantities of cannabis deemed appropriate for personal use. Production licenses will be regulated closely by the government.

Thailand was once known around the world for having high quality cannabis. Cannabis was also used as traditional medicine in the country until prohibition was instituted during the 1930s.

Under the new medical law, however, penalties still remain high. Those caught selling or growing cannabis without a license will face between five and 15 years in prison and fines of up to 1 million baht, or approximately $30,000.

It’s still unclear when Thailand’s new medical cannabis program will take effect and sales begin.

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Trump Signs Farm Bill, Legalizes Industrial Hemp

President Donald Trump signed the 2018 Farm Bill into law on Thursday, legalizing industrial hemp and its derivatives across the country.

An amendment to the $867 billion bill — which was originally inserted by Senate Majority Leader Mitch McConnell (R-Kentucky) — officially removes hemp and its derivatives, including cannabidiol (CBD), from the Controlled Substances Act.

The legalization language faced little resistance from other lawmakers. One clause was added, however, that blocks individuals who have been convicted of a controlled substance-related felony from partaking in the newly established hemp industry for 10 years after their conviction.

The 2018 Farm Bill followed a rocky path to becoming law. After missing initial deadlines due to bipartisan disagreements over changes to the federal food stamp program, both houses of Congress managed to pass separate versions of the bill which had to be unified during a lame duck session after the midterm elections. After the bill was unified, it then needed to pass both houses of Congress, which it did in record time.

The one remaining doubt — President Trump’s signature — was laid to rest during a televised bill signing event yesterday afternoon.

“The significance of this law change should not be underemphasized. This law marks the first change in the federal classification of the cannabis plant since it was initially classified as a schedule I controlled substance by Congress in 1970, and paves the way for the first federally-sanctioned commercial hemp grows since World War II.” — Paul Armentano, Deputy Director for NORML, in a statement

Trump had praised the GOP-backed food stamp changes, which aimed to add work requirements to the Supplemental Nutritional Assistance Program (SNAP). Those provisions did not make it into the final version of the bill, but the president agreed to sign after being reassured by U.S. Secretary of Agriculture Sonny Perdue that the SNAP reforms would be handled via regulatory oversight, not by Congress. That oversight should not affect the hemp legalization language.

With the prohibition on industrial hemp lifted, it is hoped that research related to CBD and other cannabinoids found in hemp — as well as insurance and business loans for farmers who grow the crop — can now proceed at full speed.

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Social Use Dispensary

Alaska Marijuana Board Approves On-Site Consumption

Alaska’s Marijuana Control Board voted 3-2 in favor of allowing on-site cannabis consumption at licensed dispensaries on Thursday, according to an Associated Press report.

The approval marks a significant milestone for Alaska’s adult-use cannabis industry, where officials have been considering social use regulations since 2015. The proposed rules will now be investigated by the state’s Department of Law, after which they can be signed into effect by the lieutenant Governor.

If the proposed changes are signed into law, Alaska will become the first legalized state with state-level laws allowing for social cannabis consumption. Currently, only certain U.S. cities — including Denver, San Francisco, and, most recently, West Hollywood — have similar rules on the books.

“There are certainly states that have indicated that they want on-site consumption but they don’t have language yet. So we really have been inventing the wheel, which always is a little bit scary. … The board has worked really hard to craft something that seems reasonable.” — Erika McConnell, via KTVA

Under the new rules, retailers will be able to apply for an upgrade to their cannabis business license that would allow them to let on-site consumers smoke up to one gram of cannabis flower or eat edibles containing no more than 10mg of THC per day.

Interested businesses will need to provide a ventilated or outdoor space that is separated by walls from the retail section of the dispensary. They must also include a smoke-free section where employees can monitor the consumption area.

With the continued spread of cannabis normalization, more and more advocates are calling for legalized states to allow for cannabis consumption in public spaces such as cafes, lounges, or clubs. The issue is particularly important for the cannabis tourism industry, as consumption otherwise remains illegal outside of a private residence.

Alaska voters chose to legalize cannabis in 2014. Local governments in the state, however, are allowed to opt out of or amend any cannabis regulations.

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Utah

Utah Receives 164 Applications for ‘Cannabis Czar’

Utah’s Department of Agriculture and Food has reportedly received 164 applications for the position of “cannabis czar,” who will head cannabis regulations in the state, according to Fox 13 SLC.

The website containing the job posting recorded more than 5,000 visitors, officials said.

“We had a wide range of applicants that included some people who were clearly not qualified and likely interested because of the nature of the job. Others were marginally qualified or qualified and others were very qualified. Interviews will begin soon. We plan to conduct at least two rounds of interviews. But we hope to fill the position shortly after the first of the year.” —Jack Wilbur, spokesperson for the Utah Department of Agriculture, via Fox 13

The “cannabis czar” will head up the regulatory oversight program for implementing medical cannabis cultivation, testing, and distribution in Utah. It’s unclear when the program will be fully deployed or even what the full final specifications of the bill are, as modifications are expected in the next session of the state Congress.

Utah’s medical cannabis legalization process, however, has so far been ripe with controversy. Earlier this month, lawmakers replaced the state’s successful legalization ballot initiative with a much more restrictive law. This move sparked lawsuits from several advocacy organizations who accused officials of suppressing voters; advocates have also accused the Church of Jesus Christ of Latter-Day Saints of improperly influencing state politics.

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Humboldt Legends Pre-Rolls Review

Humboldt Legends was one of the first to bring stylish packaging to California’s pre-roll market during the 215 medical days. They have since made the transition to the adult-use market and have somehow managed to upgrade their style without abandoning their roots.

Working as a partnership of over 40 Humboldt County farms, each farm preserves its own philosophies, growing styles, and personality while contributing flower to Humboldt Legends product lines. The farms’ approach is exceptionally honorable in these days of cannabis industrialization. Banding together to preserve their identities — while attaining some economies of scale that allow them to compete against the vast farms sprouting up across California — is truly impressive.

With the one-acre cap removed from California regulations, it is leadership like this that may be the last chance to preserve Northern California’s heritage farming.

Legally, Humboldt Legends is a benefit corporation which allows them to make profits to share with family farms while also being a champion for sustainability. The California Benefit Corporation category was established in 2011 and is specifically designed for social enterprises to pursue both for-profit and non-profit objectives. Benefit Corporations allow corporate officers and directors to take into account the triple bottom line of profit, people, and planet when making business decisions. This framework allows Humboldt Legends farmers some of the organizational benefits of corporate cannabis while retaining their heart and concern for their local communities and the environment.

Humboldt Legends’ offerings include live resine and hash-infused pre-rolls in 5-packs and single packs.

Even prior to the normalization via Proposition 64, Humboldt Legends set up a vetting process that ensures their farmers share high standards for the care of the plant, the land and the waterways around them and the community at large.

Every farm has their own particular cultivation style and Humboldt Legends intentionally doesn’t standardize growing practices between their farm partners for a few reasons. Each plot of land has its own needs and no one knows that land better than the folks who live and work on it daily. Humboldt is also a large county with distinct microclimates and terroir specific to each plot of land and needs to be farmed with that in mind. All Humboldt Legends farmer partners have one thing in common: a commitment to stewardship of the land and seeing themselves as a part of the local ecosystem.

The Humboldt Legends farmer network includes families who were part of the first generation to grow in Humboldt County. During the winter months, farmers would travel the globe. Some sent seeds back, like the first generation of Afghanis, that can still be found in their strains’ lineage.

Their family of farmers has strong roots in activism, having fought to keep Humboldt free of aerial and roadside pesticide spraying, even once upon a time going so far as to steal the keys of a helicopter set to spray the hillsides with pesticides.

Because there are so many farms participating, Humboldt Legends’ pre-roll strains and oils are constantly changing. This is great for cannabis consumers who love to try a wide range of sustainably grown cannabis from long-time heritage farmers. And it all carries the Humboldt Legends seal of quality and environmental awareness.

Humboldt Legends can be found at cannabis retailers throughout California. Ask your favorite shop for Humboldt Legends and follow their Instagram and subscribe to their newsletter for drop announcements and details on new products.

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Restaurant

West Hollywood Approves Cannabis Cafes, Lounges

The city of West Hollywood has announced license approvals for cannabis cafes and lounges, as well as other cannabis businesses, Eater Los Angeles reports.

West Hollywood will allow social use cannabis lounges — which, so far, have been seen in limited locations around the nation, such as San Francisco and Denver — where the smoking of cannabis or the eating of infused edibles is allowed.

One step further than other regions, however, West Hollywood will also have actual eateries and restaurants where chefs will be able to work with cannabis to produce foods to order.

Some speculate that the move will place West Hollywood, California on the level of cities like Amsterdam for cannabis tourism.

“The City was very impressed by the quality and caliber of the applications we received, many of the businesses are unique, innovative, and world class. The range of visions among the approved applicants reflect an entirely new era of integrated marketplaces, consumption lounges and cafes, cannabis restaurants, and immersive experiences; all of which go far beyond models currently seen in the State, or even the world. We believe these business will set West Hollywood apart and solidify the future success of the cannabis industry in the City.” — The City of West Hollywood, in a public statement

The full list of approved applicants is available on the West Hollywood city website.

The approved businesses must now have 12 months to secure a city business license and find a physical location.

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Pennsylvania Gov. Considers Legalizing Cannabis

Pennsylvania Gov. Tom Wolf (D) said yesterday in a Twitter Q&A that it’s “time to take a serious and honest look at recreational marijuana” legislation, the Associated Press reports.

The legalization question was posed by a member of the public. The governor also responded to questions related to the ongoing opioid epidemic, criminal justice reforms, bipartisanship, “liquor modernization,” and more.

Gov. Wolf is entering his second term as governor in January. While he has largely steered clear of the idea of legalizing — having suggested time and again that Pennsylvania should take a “wait and see” approach in regards to other states that have legalized — the governor was a strong supporter of the state’s 2016 medical cannabis legislation.

Gov. Wolf will also be joined next year by incoming Lt. Governor John Fetterman, who is a longtime supporter of legalizing cannabis.

Meanwhile, Philadelphia, Pittsburgh, and several other Pennsylvania cities have passed local ordinances decriminalizing the possession of small amounts of cannabis.

A 2017 poll found that 59 percent of surveyed Pennsylvanians supported legalizing cannabis — up drastically from 22 percent in a 2006 poll.

Currently, 10 states, one territory, and Washington D.C. have opted to legalize adult-use cannabis. Furthermore, governors in neighboring New York and New Jersey have both expressed a desire to legalize.

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Medical Cannabis

Tilray Strikes Global Distribution Deal With Pharma Giant Sandoz

Tilray has entered a partnership with Sandoz Canada and extended an existing medical cannabis distribution deal to include the rest of the pharmaceutical company’s global distribution network, the CBC reports.

Tilray first started a Canada-only deal with Sandoz, owned by Novartis Pharmaceutical Group, in January 2018. Non-smokable medical cannabis products with the Tilray and Sandoz brands started shipping to customers in June.

The new deal allows Tilray to use Sandoz’s supply chain, sales force, and will allow for the co-branding of products.

“Tilray is a global company, and we’re thrilled to build upon the success and momentum from our existing agreement with Sandoz Canada by taking our partnership global.” — Brendan Kennedy, CEO of Tilray, in the report

Tilray CEO Brendan Kennedy said Germany is the first priority for the partnership. All doctors in Germany are allowed to write medical cannabis prescriptions, which are covered by insurance. Germany also has a larger population and economy than Canada.

Sandoz also distributes to the U.S., but stringent federal cannabis laws will prevent cannabis imports, for now. However, if President Trump signs the 2018 Farm Bill into law, as he is expected to do, it could allow for more CBD-based products to be imported immediately.

Tilray shares were up more than 20 percent following the announcement, topping out at $82.29 on Wednesday on the NASDAQ exchange.

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DNA

Study: THC May Change Gene Signaling In Sperm

A study published in the journal Epigenetics has shown that THC can affect the genetic information carried by sperm, according to The Verge.

Researchers at Duke University performed similar experiments on both rats and humans. On rats, they tested the sperm of rats who had been given cannabis and those that had not. In humans, they tested sperm from men who were weekly consumers of cannabis against sperm from men who hadn’t had any cannabis in the last half-year and had only consumed it a maximum of 10 times in their lives.

The study investigated THC‘s epigenetic effects. Epigenetics is the study of information not explicitly in the genome but rather attached to it via chemical compounds called methyl groups. While the genes themselves don’t change, methyl groups cause changes in the genes’ expression.

In both rats and humans, cannabis was shown to change the amount and placement of methyl groups in specific areas of the genome. One difference related to the size of internal organs in offspring and the other related to the body’s response to cancer.

Researchers were very clear that the exact outcomes of those changes are still uncertain. The study was a pilot designed to see if there were any genetic changes in sperm due to cannabis, which was confirmed. It is not known whether or not the changes are reversible or whether they will actually result in concrete changes in offspring.

“I want to be very careful to not have the results turned into something that they’re not. It’s not intended to scare people. Our whole objective is to learn more about biology and what effects there might be.” — Susan Kay Murphy, a co-author of the study

Researchers hope to study the changes further and are already designing new studies at Duke University.

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New Hampshire Capital

New Hampshire Gov. Promises to Veto All Cannabis Legalization

New Hampshire Gov. Chris Sununu (R) said on Friday that he would veto any legalization legislation that reaches his desk, “regardless of what the language looks like,” The Concord Monitor reports.

Sununu has called his campaign against legalization one of the biggest policy issues of his administration. He urged members of the Governor’s Commission on Alcohol and Drug Abuse Prevention, Treatment, and Recovery on Friday to fight legalization. Gov. Sununu has even sought consult from anti-legalization crusader Kevin Sabet.

Sabet, a former drug policy adviser under the Bush and Clinton administrations, is now the head of anti-legalization group Smart Approaches to Marijuana. “Kevin Sabet is engaging with us very aggressively,” Sununu said. “He’s very excited, he’s raised a lot of money nationally.”

The meeting where Sununu made his rallying cry for continued prohibition was an unusual spot to come out so strongly against cannabis. The commission has been tasked with spending millions of dollars in the fight against addiction — a fight in which cannabis has shown some potential.

It’s arguable that spending a sizable portion of the state’s budget on addiction control via continued cannabis prohibition is unwise, considering that millions of Americans continue to die each year from opiate addiction and withdrawal and that there remains zero recorded cases of a fatal cannabis overdose.

Furthermore, there is strong public support for cannabis legalization in New Hampshire, where 68 percent of the population supports it and 74 percent want specifically to regulate sales. Even more staggering is that New Hampshire has already decriminalized cannabis, so the plant is already being used freely throughout the state.

“Sadly, the message Governor Sununu is sending to Granite Staters couldn’t be more clear. It’s ‘support your local drug dealer, and to hell with any sort of regulated system.’” — Matt Simon, of the Marijuana Policy Project, to the Concord Monitor

The Commission decided to table further discussion until it’s next meeting on January 25. It’s unclear how the commission’s 28 members will vote.

Democrats hold majority control of New Hampshire‘s legislature and have shown support for full legalization and regulated sales, so — while Sununu has promised to veto — lawmakers may have enough support to overrule him on the issue.

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Opiates

Research Shows Opioids Largely Ineffective Against Chronic Pain

A study published in the journal JAMA shows that opioids are only slightly more effective than placebo medications at treating chronic non-cancer pain, and their effectiveness declines over time, CNN reports.

The study shows no significant benefit for most adults with chronic pain when treated with opioids. In fact, for chronic pain, opioids were shown to be approximately as effective as non-steroidal anti-inflammatory drugs like Ibuprofen. The study also found an increase in negative side effects like vomiting and constipation associated with using opioids for chronic pain.

In one subsection of the analysis, it’s shown that synthetic cannabinoids seem equally as effective as opioids for treating pain, which appears to support the argument that medical cannabis can be an effective treatment for chronic pain — at the very least, it should encourage further research.

The U.S. Centers for Disease Control and Prevention (CDC) have issued guidelines in an attempt to stem the tide of opioid addiction that began in the early 1990s, when opioids were considered a wonder drug with an unlikely chance for addiction.

One of the study’s authors, Jason Busse of McMaster University in Ontario, said the CDC guidelines, however, do not include nearly as many high-quality research papers as the latest meta-analysis.

Busse said of people who are considering opioids as a treatment for their chronic pain: “Now they have the evidence to understand what their chances are of achieving meaningful improvement.”

With these findings, however, it’s clear that opioids should not be the first, second, or even third option — and medical cannabis deserves further studying as an option with fewer side effects that may well be more effective for chronic pain patients.

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Judge's Gavel

Denver’s Sweet Leaf Cannabis Gets Hit With $8.8 Million Judgement

Denver’s Sweet Leaf dispensary chain has been hit with yet another round of fines by a judge, totaling $8.8 million, according to a Denver Post report.

Denver District Judge Edward Bronfin levied the fines after Sweet Leaf allegedly violated commercial leases on four different properties. The owners of Sweet Leaf failed to pay rent, late fees, and interest, he said.

The judgement follows a long string of court battles for Sweet Leaf after the dispensary chain was raided in a sting operation by Denver police.

The Denver Police Department accused Sweet Leaf of “looping,” a sales practice wherein a business knowingly circumvents the maximum daily allotment for cannabis consumers under Colorado regulations.

After a protracted battle, the Colorado Marijuana Enforcement Division in October ordered Sweet Leaf to relinquish 29 cannabis business licenses and pay $2 million in fines.

Some people have hailed the new $8.8 million judgement as proof that cannabis businesses will be held to the same contractual standards as other businesses. This does provide assurances for those not directly involved with flower production but who do business with those producers.

Sweet Leaf’s owners still maintain they had no knowledge of any wrongdoing. Attorneys representing the Denver dispensary chain said they would not comment on pending litigation.

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Photograph of a sunset view of Seattle, Washington with Mount Rainier in the background.

Washington Adopts New Cannabis Investment & Packaging Rules

The Washington State Liquor and Cannabis Board (LCB) adopted new interim policies on investment rules, edible packaging, and product labeling on December 12.

Board Interim Policy 06-2018 allows investors to put money immediately into their businesses, rather than wait for LCB approval, a process that sometimes takes up to 50 days. These flash investments are still subject to review and the LCB reserves the right to revoke licenses whose funding comes from unverifiable or questionable sources. Investors who are not listed on the license must continue to wait for their funding verification to be approved.

Responding to complaints from the public that cannabis edibles were too appealing to children — and to complaints from the industry that packaging approval process lacked transparency and was hard to understand — the LCB adopted Interim Rule BIP-10-2018 in an effort to “clarify the rules for licensees, protect the public, and to reduce risk of accidental exposure to marijuana infused edibles by youth and children.”

The new requirements are much more specific and drastically reduce the available color pallet and allowed shapes for edible manufactures. Clear windows, product pictures, and company logos are allowed. The new rules are in conjunction with the Board’s announcement they would be rescinding their ban on cannabis-infused candies and gummies in favor of more conservative packaging rules.

The LCB further clarified packaging and labeling rules via BIP-07-2018, which also prohibits the mention or depiction of alcohol.

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New York Gov. Commits to Cannabis Legalization

New York Gov. Andrew Cuomo told reporters in a widely anticipated speech on Monday that he would push to legalize adult-use cannabis within a matter of months, The New York Times reports.

The move is expected to generate some $1.7 billion in annual sales and, according to Cuomo, is representative of his administration’s efforts to “advance our justice agenda and particularly address the forms of injustice that for too long have unfairly targeted the African-American and minority communities.”

“The fact is we have had two criminal justice systems: one for the wealthy and the well off, and one for everyone else,” he said.

Shortly after Cuomo’s speech, the Drug Policy Alliance announced via press release:

“With Cuomo’s commitment and Democrats regaining control of the New York Senate and Assembly for the first time since 2010, the question is no longer should New York legalize marijuana, but what legalization will look like.”

“Governor Cuomo and the new Democratic majority have a golden opportunity to get legalization done the right way, right away,” said Kassandra Frederique, the DPA’s executive director for the state of New York.

The New York Health Department issued a report earlier this year that suggested the pros of cannabis legalization would outweigh the cons of ongoing prohibition. Since then, officials have further informed their decision via dozens of public listening sessions on the issue.

Gov. Cuomo only recently came around to the idea of legalizing. He openly opposed the state’s hyper-restrictive medical cannabis program when it was established in 2014 and he relied on the tired trope of demonizing cannabis as a “gateway drug” as recently as last year.

Some believe that Cuomo’s shift on the legalization issue was spurred by former opponent in the Democratic gubernatorial primaries and celebrated “Sex and the City” star Cynthia Nixon, who announced her brief candidacy on a platform of ending cannabis prohibition and fixing the New York City subway system.

There are currently 10 states — plus Washington D.C. — that have opted for ending cannabis prohibition and many of them are neighboring New England states.

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Aukland, NZ

New Zealand Will Put Legalization On 2020 Ballot

New Zealand Justice Minister Andrew Little said voters will get to decide whether or not to legalize adult-use cannabis during the 2020 general election, according to a New York Times report.

New Zealand has demonstrated increasing support for cannabis legalization, having just last week expanded its restrictive medical cannabis program to allow for easier access.

A recent news poll showed that 46 percent of voters favor legalizing cannabis, with 41 percent opposed.

Audrey Young of the New Zealand Herald said that the movement was favoring legalization for two reasons: “the advancement in the medicinal cannabis regime and the law just being passed, and also just that gathering sense of global opinion that the war on drugs is lost and that the health approach is the one to take.”

The Justice Minister, however, wants to be careful about the ballot question’s wording. Several politicians are uncomfortable having the issue on the ballot already, as it may dominate public attention during the campaign season.

Chlöe Swarbrick of the Green Party said she hopes the New Zealand government will be careful to design and disclose a desired cannabis legalization structure before the vote takes place so that voters actually know what they’re voting for.

Doing that, she said, “means we don’t end up with a Brexit-type situation when we’re trying to figure out what a ‘yes’ vote actually means.”

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Smoking

Many Americans Believe Smoking Safer Than Vaping, Edibles Safest

A survey study published in the Journal of General Internal Medicine, first reported by Marijuana Moment, has shown that 15.3 percent of respondents thought smoking flower was the safest way to consume cannabis, compared to just 3.3 percent for vaping flower and 2.6 percent for vaping oil.

Researchers surveyed more than 16,000 U.S. adults aged 18 or older. Of those 16,000, approximately 9,000 opted to answer the question: “In your opinion, what is the safest way to use marijuana?”

Respondents chose from the following possible answers: smoking or vaping bud, vaping concentrate or liquid, edibles, or dabbing concentrate. There was also the option for saying there is no safe way to consume marijuana.

Of the 9,000 respondents, 52.6 percent answered that there was no safe way to use marijuana. For the remaining spread, 24.5 percent believe edibles are safest, followed somewhat surprisingly by 15.6 percent who believed smoking was safest. Vaping and dabbing followed with even lower percentages, with vaping bud or concentrate both around 3 percent and dabbing concentrate at 0.5 percent.

The demographic data in the study was weighted to approximate the entire U.S. population and wasn’t limited to states with legalization.

The results seem consistent with data showing that old-fashioned joints make up for most Americans’ first encounter with cannabis.

Meanwhile, sales data shows that in freshly legalized states there is often an initial demand for flower that transitions to a market favoring edibles and vape-pens.

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Atlantic City, NJ

New Jersey Doubles Number of Medical Cannabis Dispensaries

New Jersey officials have announced six new dispensary licensees, effectively doubling the capacity of the state’s medical cannabis program, The Courier Post reports.

New Jersey’s new medical cannabis licenses are for vertically integrated segments, meaning the six new dispensary licenses also include the right to grow and supply said dispensaries, which the state has dubbed “Alternative Treatment Centers.”

The new Alternative Treatment Centers were awarded at strategic locations across the state.

“Six very strong applicants were selected, including minority-owned and women-owned businesses. We will meet with them early next year to refine their timetable for growing product and opening their doors. We are committed to an equitable expansion of supply to meet growing patient demand, and these new locations will reach patients that currently have to travel longer distances to obtain the therapy.” — Dr. Shereef Elnahal, New Jersey Health Commissioner, in a press release

146 businesses applied for the six licenses. The licensees and their locations are:

  • NETA NJ, LLC, Phillipsburg
  • GTI New Jersey, LLC, Paterson
  • Verano NJ, LLC, growing in Rahway, dispensing in Elizabeth
  • Justice Grown, Ewing
  • MPX New Jersey, growing in Galloway, dispensing in Atlantic City
  • Columbia Care New Jersey, Vineland

The businesses must now begin the process of background checks, finalizing local government approval, and meeting other regulatory standards.

Meanwhile, New Jersey is also advancing adult-use legalization which is expected to be considered by lawmakers early next year.

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Wall St.

Sen. Gardener Aims for Cannabis Banking Reforms This Week

Senator Cory Gardener (R-Colorado) is planning to propose a major overhaul to banking rules for state-legal cannabis companies this week, The Denver Post reports.

“This is by far and away the best shot we’ve had so far,” Sen. Gardner told The Denver Post on Friday.

Sen. Gardener’s plan is to attach a piece of legislation he co-sponsored earlier this year — The Strengthening the Tenth Amendment Through Entrusting States (STATES) Act — to a criminal justice reform bill that has become a priority for both President Donald Trump and Senate Majority Leader Mitch McConnell (R-Kentucky) during the current, lame-duck session of Congress.

The STATES Act would essentially make federal cannabis laws mirror state cannabis laws, meaning that cannabis businesses in state-legal markets would suddenly have access to all of the normal benefits granted to mainstream business interests.

Specifically, banking access, business tax write-offs, and potential access to stock markets come to mind.

“It would be monumental. It would fix our tax problem. It would open up a lot of new options for commercial banking services, and it would end the threat of the (Department of Justice) kicking in our doors and seizing our assets.” — Neal Levine, CEO of the Cannabis Trade Federation, via The Denver Post

Sen. Gardener has had federal cannabis reforms on his mind for months, having secured President Trump’s commitment to allowing a states’ rights approach to legalization in April. The Colorado senator was then joined in June by Sen. Elizabeth Warren (D-Massachusetts) in submitting the STATES Act.

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