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Marlboro Parent Company Makes $1.8 Billion Bet On Cannabis

12/07/2018

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

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

News about the potential investment first broke earlier this week.

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

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

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

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

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

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

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

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Canada Using Sewage to Track Cannabis Consumption

12/07/2018

by Pat Beggan

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

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

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

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

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

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

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

Cannabis was legalized for adults throughout Canada in October.

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Quebec May Outlaw Public Cannabis Consumption, Raise Age to 21

12/07/2018

by Pat Beggan

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

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

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

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

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

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

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

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Utah Advocates Sue State Gov. Over Cannabis Replacement Bill

12/07/2018

by Pat Beggan

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

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

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

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

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

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

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

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

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A man holds a lighter to a glass pipe loaded with ground cannabis.

Michigan Legalization Takes Effect Today

12/06/2018

by Graham Abbott

Cannabis is officially legal for adults in Michigan starting today.

Adults who are 21 or older are now allowed to consume the plant, possess up to 2.5 ounces of flower and 15 grams of concentrates, and grow up to 12 plants at home. Adult citizens can also possess the harvests of their home grows, up to a maximum of 10 ounces of flower.

Cannabis commercialization, including a taxed-and-regulated marketplace, will hopefully launch in Michigan sometime at the end of 2019.

56 percent of voters approved the Michigan Regulation and Taxation of Marijuana Act despite heavy opposition during the 2018 midterms.

As Michigan is the 10th U.S. state to legalize, a whopping 20 percent of the nation’s 50 states have now ended cannabis prohibition.

“This is a great day for the state of Michigan and, as the first midwest state to legalize marijuana for adult use, a huge step forward in the nationwide fight to end the failed policy of prohibition and incarceration and to replace it with a sensible system of legalization and regulation.” — NORML Executive Director Erik Altieri, in a statement

Potential legislative interference

The reforms are not 100 percent secure, however, as outgoing Michigan Senate Majority Leader Arian Meekhof has introduced legislation via a lame-duck session that would gut several key aspects of the voter-approved ballot initiative, including the right to home-grow cannabis. Sen. Meekhof’s proposal would also reduce the cannabis excise tax down from ten percent to just three percent, which would in turn slash the state’s future cannabis tax revenue.

Activists are not happy about the possible interference with Michigan’s electoral process.

“It’s disrespectful to the political process and it’s disrespectful to the voters of Michigan,” Josh Hovey, spokesperson for the Coalition to Regulate Marijuana Like Alcohol, said in an interview with MLive. “The people of Michigan have spoken. They knew what they were voting on.”

“I think it’s a Hail Mary attempt to satisfy some big business interests and wealthy donors who want to get into the industry,” said Hovey.

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New York Accepting Hemp Applications for CBD Products

12/06/2018

by Pat Beggan

New York announced it is now accepting applications for growers and processors of industrial hemp, according to a Weed News report.

Though the 2018 Farm Bill, which is on track to soon be passed and sent to the president’s desk for his signature, is expected to completely legalize industrial hemp, New York’s program is for now operating under the pilot program structure laid out in the 2014 Farm Bill. The new applications are solely for industrial hemp to be used in CBD preparations — hemp products meant for human or animal food products are not condoned under the current application process.

The current application period closes on December 28, 2018. Questions about the program can be sent to industrialhempNYS@agriculture.ny.gov and relevant answers will be posted on the Department of Agriculture website’s FAQ section.

New York established its pilot program for industrial hemp in 2015 and held a Hemp Summit in 2017. More details can be found on the Department of Agriculture‘s website.

New York is also currently attempting to structure and pass full adult-use cannabis legalization following a favorable report from the state’s Department of Health earlier this year.

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Drive-Thru CBD Available in Vermont

12/06/2018

by Pat Beggan

A former bank has been turned into a drive-thru CBD dispensary in Battleboro, Vermont, the Battleboro Reformer reports.

Ceres Natural Remedies opened for business in early November, offering convenient access to CBD-only products.

“We are constantly looking for ways to make the buying experience more convenient while still maintaining the same quality of service to our customers, many of whom have debilitating health issues that make getting around harder. We think this will set a new standard for delivery in our industry here in Vermont and throughout New England in the future.” — Shayne Lynn, Ceres Natural Remedies and Southern Vermont Wellness CEO, via the Reformer

While currently anyone 18 and older can purchase CBD products, Southern Vermont Wellness hopes to be able to provide THC products through a similar drive-thru experience for registered medical cannabis patients in the future as well. Registered patients will be able to order THC products online and then pick them up at the drive-thru window through the soon-to-be-deployed system.

All the products currently for sale are hemp-based, with many using hemp grown locally by the Mettawee Valley Hemp Company. The products range from edibles to capsules, oils, vapes, and pet treats.

Cannabis is legal in Vermont for medical and adult-use purposes, but there is not — and there are not currently plans for — a taxed-and-regulated commercial market for recreational cannabis products.

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Cannabis Researchers Discover Strain Uniquely Effective for Diabetics

12/06/2018

by Pat Beggan

A cannabis pharmaceutical consortium says it has discovered a strain of cannabis that produces useful levels of a rare cannabinoid that may help in the treatment of diabetes, Mercury News reports.

Tetrahydrocannabivarin, or THCV, is a cannabinoid found only in tiny amounts in most cannabis strains. The strain known as “Black Beauty,” however, appears to contain an abundance of the cannabinoid. Black Beauty is so named for its leaves, which are typically darker than other medical cannabis strains. There exists evidence, including a study published in the scientific journal Nature, demonstrating that THCV is uniquely powerful against the symptoms of diabetes.

The Black Beauty strain was discovered several years ago by Marin County medical cannabis expert George Bianchini and partner Ed Rosenthal. At first, the plant was nearly discarded when lab results showed it contained little THC and no CBD. However, Black Beauty contains approximately 3.5% THCV. Rosenthal and Bianchini have been working to roll back decades of THC-focused breeding of cannabis and Black Beauty is now part of that process.

Several biotech companies have been working on implanting the genes for THCV into industrial hemp, which would enable large-scale production of the cannabinoid while circumventing federal regulations against cannabis.

Marin County-based bio-pharmaceutical company Liposome Formulations Inc. announced it will soon release a product line of THCV pills, though the pills are expected to carry a high price until the biotech companies in Marin County can successfully produce THCV with industrial hemp.

With the 2018 Farm Bill set to legalize industrial hemp this year, breeding a strain of hemp that can be produced cheaply and in large amounts with a gene for THCV could be just the ticket for diabetics.

Either way, following the discovery of several previously unknown cannabinoids earlier this year, it’s clear that medical cannabis discussion and research should include further experiments into the lesser-known cannabinoids.

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Marlboro Owner In Talks to Acquire Canadian LP Cronos

12/05/2018

by Pat Beggan

Altria, the parent company of Phillip Morris USA and maker of Marlboro cigarettes, is in talks with Canadian cannabis producer Cronos over a possible acquisition, The Guardian reports.

Cronos representatives said no agreement was reached yet and cautioned investors, who caused the company’s shares to rise following release of the news, that there is no promise of a future agreement between the companies.

Any successful deal between the companies would be momentous. Previously, several large alcohol brands like Corona, Molson-Coors and others have made investments into the cannabis space. The only other notable deal from a tobacco company was London’s Imperial Brands, which took an undisclosed stake in Oxford Cannabinoid in June earlier this year.

Altria is seeking to diversify into cannabis from its traditional tobacco business as the number of tobacco smokers in the U.S. continues to fall. Shares of Altria have declined 20% this year.

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Rhode Island to Consider Cannabis Legalization This Term

12/05/2018

by Pat Beggan

Lawmakers in Rhode Island say they will look seriously at cannabis legalization in the coming term, due to reforms in surrounding states and the reelection of a governor who favors cannabis reforms, according to the Providence Journal.

Rhode Island lawmakers return in January for the start of a new legislative session with a host of new representatives. Returning state Rep. Scott Slater, who has previously sponsored several failed cannabis legalization bills, says he is optimistic for 2019.

“With the reality of it being all around us, I think folks have to look at it a little harder now. Even if you’re against recreational cannabis and you feel there are social costs to it, you’re going to be dealing with those issues within your own borders, regardless, and without any of the revenue you could be raising. You might as well regulate it and tax it and put some of that money toward prevention.” –Scott Slater (D-Providence), to the Providence Journal

Slater said to combat negative pressure from many anti-legalization groups, his upcoming proposal will give local communities an opt-out and other abilities to limit the cannabis industry. Slater also said the state’s medical cannabis program has implemented new seed-to-sale tracking that could easily be implemented into an adult-use program.

Rhode Island Gov. Gina Raimondo has said she is open to legalization in Rhode Island as long as safeguards are in place to prevent child consumption.

“Regardless of what the General Assembly does, Rhode Island adults will be buying legal marijuana from Massachusetts stores … very soon,” said Matthew Schweich, deputy director of the Marijuana Policy Project, in an interview with the Providence Journal.

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Utah Legislature Replaces Medical Cannabis Voter Initiative

12/05/2018

by Pat Beggan

The Utah state legislature voted to replace the voter-backed Proposition 2 with the Utah Medical Cannabis Act (UMCA) on Monday, the Salt Lake Tribune reports.

The replacement, designed by the state of Utah, passed both houses by a wide margin in a single-day special legislative session. Some supporters of Prop. 2 agreed before Election Day to a potential compromise bill, though others — such as advocacy organizations Together for Responsible Use and Cannabis Education and Alliance for a Better Utah — have taken issue with the replacement legislation.

Most advocates are happy nonetheless that there is any sort of law, however limited, including Connor Boyack, president of free market think group Libertas Institute, which supported Prop. 2.

“For years, we have been seeking a balance between political concessions and pushing the needle as far in favor of medical freedom as we could. This negotiated result is a decent balance to get the program underway. With this result, a major gutting of Prop 2 has been prevented, unlike what we have seen in the past and may see in the future on other issues.” — Connor Boyack, in a prepared statement.

There are several key changes in the UMCA over Prop. 2:

The number of allowed dispensaries has been reduced from 40 to just seven.
Edibles were largely stripped away as well, with only gelatin cubes allowed under the new rules.
Many autoimmune disorders were also removed from the list of qualifying conditions, leaving just Crohn’s Disease and ulcerative colitis.
Lawmakers also raised the age for participation in the program to 21, despite arguments by Democrats that patients aged 18-20 could be approved via a compassionate use board.

More amendments to the bill are expected once the Utah state Senate enters its regular session next year. Some state senators have also suggested that future updates to the Act are a possibility, similar to how the state’s alcohol code is updated almost yearly.

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A medical researcher handles medical equipment inside of a sterile work zone.

Sacramento Testing Lab Surrenders License, Major Recall Likely

12/04/2018

by Graham Abbott

Sacramento-based Sequoia Analytical Labs has surrendered its license to California state regulators after it was revealed that the lab’s now-former director was falsifying pesticide testing results, FOX 40 reports.

The incident is expected to signal the state’s largest cannabis product recall, yet.

According to an email and social media update from Sequoia, the company voluntarily surrendered its license to the Bureau of Cannabis Control (BCC) and will cooperate with regulators in hopes of having its licensed returned by January 1, when a new host of testing requirements will take effect.

“During a BCC inspection on Tuesday, November 27, it was discovered that pesticide testing here at Sequoia Analytical Labs was not in compliance with BCC regulations. 22 of the required 66 pesticides, primarily, Category 2 pesticides, were not being correctly tested due to a faulty instrument. It was further discovered that the Lab Director knew about this and was secretly falsifying the results … from July 1 to November 27.” — Excerpt of official Sequoia Analytical Labs statement

The responsible director was promptly fired and replaced and the lab says it has already started working to fix the faulty instrument and revamp company procedures. “Management and ownership were horrified to learn about this severe breach of a very important safety regulation,” the company statement reads.

Sequoia’s general manager Steven Dutra told MJBizDaily that the BCC, “is not demanding that product be pulled in and destroyed;” rather, regulators want to see the affected products recalled and retested. It is not yet clear if the products will need to be completely retested or just retested for pesticides.

According to Dutra, there were some 700-800 batches of cannabis products affected by the faulty instrument and unscrupulous lab director, making this the largest product recall the California industry has ever faced.

In its official statement, Sequoia urged its clients to contact the BCC if they believe they may have received affected products and have not yet heard from the regulatory agency.

“We are very sorry for the inconveniences this incident will cause our clients,” the statement reads. “We have always made client and patient safety our top priority and we will be taking aggressive steps to insure that such incidents never happen again at Sequoia.”

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Boulder, Colorado to Erase Prior Cannabis Convictions

12/04/2018

by Pat Beggan

Prosecutors in Boulder, Colorado are taking things a step further over the state and moving to completely erase previous cannabis convictions, the Boulder Daily Camera reports.

Boulder County District Attorney Ken Kupfner has made a list of nearly 4,000 possession convictions in country records since 2008 that would qualify to be vacated and sealed. Kupfner said the goal is to eventually erase even older convictions.

Boulder is going further for cannabis criminal reform than the state of Colorado, which passed a state law last year allowing people previously convicted of cannabis possession to have their charges sealed — but not erased.

“This is really a program based on fundamental fairness. This is conduct that is no longer illegal. It just seems like the right thing to do in these circumstances is to vacate and seal those convictions. … This is really designed for people who would not have found themselves in the criminal justice system today.” — District Attorney Ken Kupfner to the Boulder Daily Camera

Charges of possession of 2 ounces or less, or 1 ounce or less alongside paraphernalia charges qualify for erasure. Charges with any reference to distribution or other related crimes do not qualify.

On January 10 and 15 at the Boulder Justice Center — located at 1777 Sixth St. in Boulder — there will be a clinic where those with previous cannabis charges can have their case looked up to see if they qualify for expungement. An application to seal and vacate previous charges will also be posted on the District Attorney’s Office.

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Ohio Cannabis Patient Registry Site Now Online

12/04/2018

by Pat Beggan

The online portal for registering as a medical cannabis patient in Ohio is now live and taking registrations, according to The Toledo Blade.

The Ohio Board of Pharmacy sent notices to physicians, patients, and caregivers that had previously requested information about the program’s launch.

Only state-approved physicians can register new patients on the website, and patients will be charged $50 per year to participate in the registry. Once a patient is registered, they may print proof of registration, or save it to their mobile phones, which will give them access to dispensaries.

Some confusion was caused by the registry’s delay, with some patients believing they were allowed to possess cannabis before they were on the registry due to the “affirmative defense” language in Ohio’s medical cannabis law. That language, however, has been inconsistently applied by judges. Furthermore, the “affirmative defense” language expires when the registry and dispensary programs have been fully rolled out.

State officials said that medical cannabis should be available for patients at licensed dispensaries in Ohio within 60 days.

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Canadian LP Aphria Accused of Fraudulent Financials

12/04/2018

by Pat Beggan

Gabriel Grego of Quintessential Capital Management has accused Canadian producer Aphria of playing a shell game with shareholders by purchasing non-existent assets for the sole profit of the company’s founders, according to a Financial Times report.

Grego is a well-known short seller. Short selling is the trading term for betting that a stock is overvalued and will soon fall in price. Grego does stand to make a profit on the fall of Aphria’s share price, which started shortly after the report’s publishing.

Aphria issued a statement denying the claims by Grego and Quintessential Capital Management.

“Allegations that have been made by the short seller Quintessential Capital in the report that they published this morning are false and defamatory. The company is preparing a comprehensive response to provide shareholders with the facts and is also pursuing all available legal options against Quintessential Capital.” — Aphria, in a statement emailed to the Financial Times

Grego has previously called out fraudulent activities by Greek jewelry chain Folli Follie. He claimed the chain’s Chinese sales numbers were fraudulently inflated, which he discovered while checking on the retail outlets supposedly in operation in China. There were far fewer retail outlets than claimed, backed by a later investigation by Alvarez & Marsal, a professional services firm. Grego’s Quintessential Capital Management also discovered fraudulent activity by technology company Globo PLC in 2015.

According to his report, Grego visited the locations of three of Aphria’s recent acquisitions in the Caribbean and Latin America, bought for a total of CA$280 million. Grego said that there were only empty buildings at the locations and that he did not see any employees or executives. The only assets that seem to exist are conditional cannabis licenses, he said.

Grego said rival Canadian companies like Tilray have also made international cannabis deals in Latin America but that those deals were completed for a fraction of the price and the companies purchased real assets.

The outcome of any legal action by Aphria — as well as any proof of value to shareholders — remains to be seen. By the end of trading on Monday, Aphria’s shares had fallen 30 percent.

End

Rainy day on the streets of Manhattan, in New York City.

New York Lawmakers Hold Another Legalization Hearing

12/03/2018

by Graham Abbott

New York State Assembly members are hosting a public hearing today to discuss potentially legalizing adult-use cannabis in The Empire State, according to The Associated Press.

The hearing, which kicks off at 10:30 a.m. at the Babylon Town Hall on Long Island, is intended for gathering input and experience from other state-legal cannabis markets. It is the fourth public hearing related to cannabis legalization that New York lawmakers have held this year, though a long series of listening sessions earlier this year demonstrated a legislative willingness to hear public input on the issue.

At the most recent public hearing — held November 20 in Binghamton — Assembly Health Committee Chair Richard Gottfried said the hearings are supposed to cover more than just whether or not New York should legalize.

“Not only about is it a good idea or bad idea. But also about what are the mechanics of it. Creating a new industry is a complicated thing. We haven’t done that in New York since the end of prohibition in 1933.” — Assembly Health Committee Chair Richard Gottfried, via Metro.us

Assemblyman Gottfried has been a champion for cannabis reforms in New York for a large part of his career, having started first advocating for medical cannabis there some 20 years ago and recently having introduced a bill that would subsidize medical cannabis with health insurance.

Legalization is growing more and more attractive to New York as nearby Maine, Massachusetts, and Vermont have already passed adult-use cannabis laws (though only Maine and Massachusetts have established rules for a taxed-and-regulated system).

Lawmakers are expected to begin seriously looking at legalization legislation once the 2019 legislative session kicks off next month.

If it successfully legalizes cannabis next year, New York would be the 10th U.S. state to allow for adult-use cannabis.

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Utah Lawmakers to Vote On Changing Voter-Backed Cannabis Measure

12/03/2018

by Graham Abbott

Utah lawmakers are expected to vote on Monday for several alterations to the state’s voter-approved medical cannabis initiative, the Associated Press reports.

Lawmakers will meet today in a special lame-duck session to discuss and vote on changes to Proposition 2, which was approved by 53 percent of voters during Utah’s midterm elections despite heavy opposition by lawmakers and the Mormon Church. Specifically, the legislature aims to slash the number of medical professionals who would be qualified to recommend medical cannabis, reduce the number of qualifying conditions, and remove rules allowing patients who live far away from a licensed dispensary to grow their own cannabis plants.

Proponents of the “compromise legislation,” which was first mentioned in October, say the proposed changes would still give medical cannabis access to those who truly need it while doing more to keep cannabis away from children and dissuade any broader legalization attempts in the future.

Note: even before lawmakers decided to change it, the smoking of medical cannabis was not allowed under the voter-backed Proposition 2.

Last month, cannabis advocacy group Together for Responsible Use and Cannabis Education threatened to sue state lawmakers and the Mormon Church if Utah’s recently-passed medical cannabis initiative is not implemented as it was written.

“It’s an almost complete disregard for the will of the people once they’ve spoken through the initiative process.” — Rocky Anderson, an attorney for cannabis advocates, via the AP

However, representatives from another advocacy group — the Utah Patients Coalition — support the compromise bill, arguing that, because Utah state law allows the legislature to change or even throw out any voter-approved measure, it is wiser to remain at the bargaining table and work with lawmakers and the anti-cannabis lobby on the issue.

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Iowa Launches Limited Medical Cannabis Industry

12/03/2018

by Graham Abbott

Medical cannabis products went on sale in Iowa over the weekend, marking the launch of the nation’s latest — albeit limited — cannabis product marketplace, The Associated Press reports.

Iowa’s medical cannabis rules are particularly stringent about what patients are allowed to do and use. The program is also unique in that it only allows for CBD-rich products — note: while some THC is allowed, the Iowa program caps any THC content at just three percent.

“I think the biggest thing that people should realize, and one of the things that’s kind of confusing, is that the products available in these dispensaries are not what most people think about when they think about marijuana — there won’t be smoking products, there won’t be joints, there won’t be edibles.” — Sarah Reisetter, Deputy Director of the Iowa Department of Public Health, via the AP

Currently, the products in Iowa’s cannabis market are manufactured by MedPharm Iowa, who supplies dispensaries in Council Bluffs, Davenport, Sioux City, Windsor Heights, and Waterloo. Under state law, only two CBD product manufacturers are allowed.

The program was established via the 2017 Medical Cannabidiol Act, which allows patients to purchase medical CBD products from a licensed dispensary if they suffer from one of the following qualifying conditions: cancer, seizures, Crohn’s disease, “untreatable” pain, multiple cclerosis, AIDS or HIV, ALS, Parkinson’s disease, or any terminal illness with a probably life expectancy of less than one year.

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Study: Vaping Delivers More THC Than Smoking

11/30/2018

by Pat Beggan

A recent study has shown that vaporizing cannabis delivers more THC to the bloodstream than smoking, according to Live Science.

In the study, which was conducted by the Substance Abuse and Mental Health Services Administration and John Hopkins School of Medicine, 17 subjects were gathered for six separate 8.5-hour sessions, separated by a week or more. All participants had not smoked or ingested cannabis in the month before the study was conducted and were tested for compliance and other impairments before the study sessions.

The participants were asked to either smoke with a pipe or vaporize using a volcano measured doses of cannabis containing a total of 0mg, 10mg or 25mg of THC over the course of the six sessions. Each time, participants were asked to fill out an impairment questionnaire as well as had their vitals measured and blood taken.

Subjects who vaporized weed had significantly higher amounts of THC in their blood compared to those who smoked an equal dose. Results from the impairment questionnaire also showed increased effects, as those who vaporized not only self-reported more side effects like dry eyes or mouth but also made twice as many mistakes on cognitive tests.

Researchers theorize that the difference is likely due to losses of THC due to combustion as well as “sidestream smoke,” or smoke that is created but not inhaled.

The study also found a disconnect between blood concentrations of THC and subjective drug effects and impairment. Researchers saw little to no correlation between blood content and continuing effects. Often, the subjective effects of cannabis intoxication as well as motor skill effects continued well after blood concentrations declined below levels that should show an effect. This is further proof that a blood test for cannabis is not a reliable measure of impairment.

Researchers concluded that the amount of THC or other cannabinoids should not be the only consideration when attempting to accurately dose cannabis. Regulators and consumers both should be aware that the method of consumption — even between seemingly similar methods like smoking and vaping whole plant cannabis — can make a big difference in how high a user becomes or how much of a given medicinal cannabinoid enters their body.

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New Mexico Removes Final Hurdle Blocking Hemp Production

11/30/2018

by Graham Abbott

New Mexico is on the verge of allowing industrial hemp production after the New Mexico State University (NMSU) Board of Regents voted in favor of a proposal crafted by state agriculture officials, according to an NMSU press release.

Interested parties can apply for a license from New Mexico’s Department of Agriculture, which will regulate the program.

“In terms of economic development, it is highly desirable for our state and New Mexico State University to explore opportunities to diversify our economy. It’s another tool that allows New Mexico farmers to diversify their crop base and seek new market opportunities. I appreciate NMDA for working closely with stakeholders to develop the regulations to guide this emerging industry.” — New Mexico State Sen. Mary Kay Papen, in a statement

NMSU staff said the university is now collecting resources and information to help the state’s prospective hemp farmers and processors.

New Mexico’s industrial hemp ambitions were stymied when Gov. Susanna Martinez (R) vetoed a state hemp legalization bill in March 2017. The veto was contested as lawmakers, farmers, and advocates continued to push the agricultural and economic benefits of hemp.

Meanwhile, the 2018 Farm Bill is expected to end the federal ban on industrial hemp.

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Lawmakers Reach Farm Bill Deal, Hemp Legalization Incoming

11/29/2018

by Graham Abbott

Lawmakers in federal Farm Bill negotiations said Thursday they have reached an “agreement in principle” that would break a months-long standoff over commodity policy and food stamps disagreements, Bloomberg reports.

The bill’s hemp language, which was inserted by Senate Majority Leader Mitch McConnell (R-Kentucky), is reportedly intact after Sen. McConnell personally followed up with the Farm Bill conference committee to ensure it was included. The hemp provisions will reclassify the plant as an agricultural commodity, removing it from the list of federally controlled substances and allowing farmers to pursue crop insurance for their industrial hemp.

The Farm Bill negotiations were not at all related to the hemp provisions it contained but rather to a request by President Trump that lawmakers include provisions expanding work requirements for people who receive federal food stamps. Supporters have nonetheless waited impatiently for news that the $867 billion spending bill would pass without having its hemp legalization language stripped away.

House Agriculture Chairman Mike Conaway of Texas (R) said the compromise leaned more towards the Senate version of the bill.

“”The certainty that the farm bill brings to the table for the next five years is the win. … Everything we had in the House bill was important but we made the compromises we needed to make to get this deal done.” — Rep. Mike Conaway (R-Texas), via Bloomberg

The bill requires a few more minor details to be hashed out. It will be made publicly available sometime next week before full floor votes in the House and Senate, after which the bill will go to the president’s desk for his signature.

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Michigan Helps Dispensaries Fight Shortages, Approves Home Delivery

11/29/2018

by Pat Beggan

A looming cannabis shortage in Michigan has been averted after the Michigan Medical Marijuana Licensing Board introduced a measure to allow dispensaries to continue purchasing cannabis from previous suppliers, according to The Detroit Free Press.

Michigan has been operating under a hodge-podge of old medical cannabis laws, emergency interim rules, and new laws since passing adult-use legalization during the midterm elections. Before the new measure, dispensaries were given just 30 days following licensure to transition to new producers. However, the state only started handing out licenses to growers in August, so there are virtually zero mature cannabis plants currently available from those suppliers and more than 40 dispensaries were about to transition to the new suppliers.

Previously, dispensaries in the state could get their medical cannabis from caregivers, which are small-scale cannabis growers that were licensed under the state’s 2008 medical cannabis law. Caregivers are allowed to grow up to 12 plants to supply their own needs and 12 each for the needs of up to five others, for a maximum of 72 plants. The state’s emergency rules allow the caregivers to supply medical dispensaries with any cannabis not given to medical cardholders.

The dispensaries — who have already paid more than $75,000 each in regulatory fees — now have some breathing room while the newly licensed cultivators finish growing their first crop.

Michigan’s Medical Marijuana Licensing Board also approved rules allowing for home delivery that take effect immediately. The rule change allows licensed dispensaries to deliver up to 2.5 ounces to a patient’s home and send out up to 10 deliveries in the same vehicle.

Michigan regulators continue to attempt to unify old laws, emergency rules, and new regulations. The state is also attempting to resolve a lawsuit brought by the City of Lansing and others following an attempt by the state to shutter unlicensed cannabis businesses by October 31. A judge squashed that deadline but the lawsuit is still pending.

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Brazil Advances Medical Cannabis Legislation

11/29/2018

by Pat Beggan

A ballot measure introduced to the Brazilian Senate by an online petition has received an important committee’s approval, Marijuana Moment reports.

The measure received over 100,000 citizen votes. It would legalize cannabis for anyone with a doctor’s prescription. The bill is separate from a bill introduced by Brazil’s Worker’s Party, which would completely legalize adult-use cannabis.

On Wednesday, the Brazilian Senate’s Social Affairs Committee approved the medical cannabis legislation. It now moves on to be considered by the Commission on Constitution and Justice, followed by the Chamber of Deputies. Should the bill pass those committees, it will go to the desk of Brazil’s President-elect Jair Bolsonaro.

President-elect Bolsonaro is expected to be the bill’s major hurdle. Bolsonaro has said he is against all legalization and plans to enforce harsher drug laws. Brazil loosened its drug laws regarding cannabis in 2006, decreasing penalties for possession to community service and mandatory attendance of a drug education program. Some fear Bolsonaro will return to earlier, harsher sentencing guidelines for drug convictions.

Senator Marta Suplicy, a supporter of the bill, encouraged other lawmakers to think of those who would be most helped by medical cannabis.

“We cannot relegate the issue to mere political discussion. More than anything, we need to empathize and put ourselves in the place of the other. In this way we can, as legislators, defend the true essence of health care, which is to mitigate human suffering.” — Brazilian Senator Marta Suplicy, via Marijuana Moment

There are several countries in South America that already have medical cannabis programs but Brazil, the continent’s largest and most populous country, remains a notable hold out. Brazil’s southern border also touches Uruguay, which was the first country in the world to end cannabis prohibition and legalize the plant for adult use.

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Potential legislative interference

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