On Wednesday, regulators in California gave approval for statewide cannabis delivery, even in communities where the cannabis industry is banned or products not sold, USA Today reports.
The California Bureau of Cannabis Control sought to clarify misunderstandings about laws and regulations that seemed to be in conflict. Opposition opinions held that the delivery rules undercut local control and regulations, and that local control over cannabis should be left to individual communities. The state law that voters approved in 2016, however, provides for access to cannabis everywhere in the state, at least through some means.
Cannabis companies and private citizens had largely favored establishing the statewide delivery system.
“The public spoke loud and clear in favor of statewide delivery.” — Alex Traverso, a California Bureau of Cannabis Control spokesperson, in a statement
Large patches of California — one of the largest states in the U.S. — have no immediate access to cannabis, whether because of local bans or long distance drives to the nearest dispensary.
The rule is expected to be challenged in court, however, as many police chiefs and the League of California Cities opposed the proposal; dissidents argued that the delivery rules undercut local control and regulations. The issue could potentially be considered by the California state legislature.
The B.C. Cancer Foundation will be using private donations to conduct a first of its kind study on cannabis’ effects on cancer symptoms in nine cities across Canada, according to The Vancouver Sun.
The trial will span 48 days and involve 150 patients from Vancouver, Abbotsford, Prince George, Victoria, Calgary, Winnipeg, Ottawa, Kingston, and Toronto. The trial seeks to prove whether cannabis helps cancer symptoms such as pain, sleep loss, anxiety and nausea.
The cannabis extracts to be used in the study were donated by Whistler Medical Marijuana Corp, which was recently purchased by Aurora Cannabis, one of the largest licensed producers in Canada. The study will cover extracts with both high CBD and high THC ratios, as well as 1:1 extracts.
Dr. Pippa Hawley, leader of the clinical trial, said, “My goal is to be able to provide a useful guide to patients and health care professionals. I want to be able to give them practical information about what could work.”
Dr. Hawley was previously involved with a clinical survey of 3,000 cancer patients. “That [survey] showed that cannabis use during treatment is widespread, for potential relief of symptoms related to treatment, or to cancer itself. This, in spite of the fact there is little or no scientific evidence into symptom and quality of life improvements.”
Hawley aims to fix that lack of evidence with the new study. Results are expected to be published in a medical journal by June, 2020.
Washington is the only legalized state that does not allow personal cannabis home grows. Activists, however, hope to change that this legislative session with two companion bills recently introduced in the Washington state Senate and House of Representatives — SB 5155 and HB 1131 — both of which have bi-partisan support.
If passed, the bills would allow Washingtonians over 21 years old to grow up to six cannabis plants at home. It would still be illegal to sell the fruits of a homegrown harvest and landlords would have the right to ban home grows on their property.
John Kingsberry, an activist with Homegrow Washington, is optimistic.
“What is different this year is that the majority of legislators I have spoken with, even those who were reluctant to support it before, have told me they may not put their names on the bill, but they will vote for it. After the 2018 election, the landscape changed in Olympia. Many of the opponents in the past were voted out. This year, we have ten sponsors on the house bill and six on the senate bill. Not only are they a bi-partisan group, but come from diverse ideologies — that’s telling me this may be the year home grows pass in Washington.” — John Kingsberry of Homegrow Washington, in an interview
The Washington State Liquor Control Board proposed two possible home grow scenarios in late 2016. Those two paths to home grows both required some variation on a traceability system at home. The WSLCB solutions were widely rejected and a cleaner home grow bill died in committee during the 2017 session.
Currently, nine other U.S. states allow adults 21+ to cultivate cannabis in the privacy of their own homes.
Editor’s note: A previous version of this article incorrectly referred to the House home grow bill as HB 1331.
Two Republican state Senators in South Carolina have introduced the Compassionate Care Act to the state legislature, according to a WIS News report.
The Act would allow doctors to prescribe medical cannabis to patients for an approved list of conditions. Sen. Tom Davis (R-Beaufort) told reporters during a press conference that South Carolina’s proposal would create the most socially-conservative medical cannabis legislation in the nation. “Each step of the process – from the growing to the processing to the dispensing is monitored in real time constantly,” he said.
The shortlist of potential approved conditions includes: cancer, multiple sclerosis, a neurological disease, PTSD, glaucoma, Crohn’s disease, sickle cell anemia, ulcerative colitis, wasting syndrome, severe nausea for a person who is in hospice care, chronic medical conditions causing severe muscle spasms — including multiple sclerosis — or “chronic or debilitating diseases for which an opioid is currently or could be prescribed by a physician based on generally accepted standards of care.”
The bill requires physicians who wish to issue medical cannabis endorsements to complete special training. Under the proposal, cannabis smoking would be banned and the only allowed delivery methods would be vaporized flower or extract, gel caps, suppositories, patches, edibles, or a topical cream.
The South Carolina Medical Association opposes the legislation. They issued the following statement: “Improving the health of South Carolina remains our top priority and legalizing marijuana will not do that.”
New York Gov. Andrew Cuomo on Tuesday outlined his support for adult-use cannabis legalization in the state, estimating it would reap $300 million in tax revenues which would be deposited into the “Marihuana Revenue Fund” after enforcement costs and funds for alcohol and drug abuse programs.
During his combined state of the state and budget address, Cuomo indicated New York’s law would seek to “stop the disproportionate impact on communities of color and … create an industry that empowers the poor communities that paid the price and not the rich corporations who come in to make a profit.”
According to the governor’s Executive Budget, more than 800,000 people have been arrested in the state for low-level possession “with the majority…people of color.”
A memoranda in support supplement to the budget released shortly after the Democrat’s remarks included the “Cannabis Regulation and Taxation Act,” sponsored by fellow Democrat Sen. Liz Krueger. The measure, currently in the upper chamber’s Finance Committee, would implement a taxed and regulated market for adults along with a host of other reforms; however, in order to ensure the law is signed once it reaches Cuomo’s desk, the home-growing provisions included in the current proposal would likely be struck from the legislation. In November’s election, the Democrats gained control of the Senate, giving the party control over the legislature.
The memorandum calls the enactment of the legalization bill “necessary to implement the [fiscal year] 2020 Executive Budget because it would increase All Funds revenue by $83 million in FY 2021, $85 million in FY 2022, $141 million in FY 2023 and $184 million in FY 2024.”
“I am glad that the Governor has embraced the necessity of ending the prohibition on adult-use marijuana. In recent months I have worked with his office, sharing what I have learned over several years working on this issue,” Krueger said in an email. “As always, the devil is in the details, and I look forward to a close examination of his proposal when the language of the Executive Budget is released.”
Photo credit: Sarah Climaco
The current language of the bill
The current measure, which moved into the finance committee in November, would allow a six-plant home grow and outlines penalties for unlicensed growing ($125-$500 fines), sales, and selling to minors (a class E felony). It would allow massive personal possession limits – up to two pounds of flower and four-and-a-half grams of concentrates; these limits, however, could also be affected in order to for the measure to receive the governor’s approval.
The measure also provides for municipal control and seed-to-sale product tracking, both included in the governor’s memorandum.
“Existing laws have been ineffective in reducing or curbing [cannabis] use and have instead resulted in devastating collateral consequences that inhibit an otherwise law-abiding citizen’s ability to access housing, employment opportunities, and other vital services,” according to the bill text. “Existing laws have also created an illicit market which represents a threat to public health and reduces the ability of the legislature to deter the accessing of [cannabis] by minors. Existing marihuana laws have also disproportionately impacted African-American and Latino communities.”
During his address, Cuomo promised the state’s cannabis industry would help the poor communities adversely affected by prohibition rather than the corporations.
As proposed, the measure includes social-equity provisions for both minorities and women, implementing a social-equity incubator for women and minorities. The plan defines social equity applicants as: “a member of the community group that has been disproportionately impacted by prohibition; has an income lower than 80 percent of the median income of the county in which the applicant resides; and was convicted of a cannabis-related offense prior to the effective date of the bill.”
The incubator program would provide “support to social equity applicants after they have been granted licensed…in the form of counseling services, education, small business coaching and compliance assistance.”
Additionally, it would block cannabis odor or possession of two pounds or less from constituting “reasonable suspicion of a crime or be used as evidence in any criminal proceeding.”
The bill would create nine licenses — nursery, producer, processor, distributor, retailer, microbusiness, on-site consumption, delivery, and testing — while implementing three taxes.
The first tax would be imposed on cannabis cultivation at a “rate of $1 per dry weight gram of cannabis flower and $0.25 per dry weight gram of cannabis trim,” according to budget documents. The second tax would be imposed “on the sale by a wholesaler to a retail dispensary at the rate of 20 percent of the invoice price.” The third tax would be “imposed on the same sale by a wholesaler to a retail dispensary at the rate of 2 percent of the invoice price but collected in trust for and on account of the county in which the retail dispensary is located.” Business registration fees and bi-annual renewal fees would be set at $600.
The proposal would move supervision of the state medical cannabis program to the newly created Office of Cannabis Management – the same agency that would supervise the recreational program – and would allow registered medical patients to grow up to four plants, according to a member of the governor’s office in an email. There are no home-growing provisions under the current medical cannabis law and flower products are unavailable to registered patients.
In an email, Vireo Health CEO Ari Hoffnung said, “until the official legislation is released it is hard to be sure how the bill will impact existing medical cannabis producers.”
Vireo operates four dispensaries throughout the state in Albany, Johnson City, White Plains, and Queens.
“Gov. Andrew Cuomo’s proposal represents an historic step toward ending the decades-long war on drugs that has unjustly targeted communities of color, bringing substantial tax revenue to the state, and creating an environment in which New Yorkers have safe and legal access to marijuana,” he said. “With that said we need to study the impact this legislation will have on our vertically integrated medical marijuana program, in which companies cultivate, process and dispense these life-changing products.”
Photo credit: Pat Beggan
New York Republicans have their own plans for cannabis revenues
In a “pre-buttal” prior to the governor’s remarks, Republicans – now the minority party in both legislative chambers – said they would like cannabis revenues to be used for tax relief, “not to fuel more spending.”
In an interview with Spectrum News, Deputy Minority Leader Joe Griffo said the tax windfall could reduce both property and income tax rates in the state. Griffo compared the legalization proposal to another ‘sin’ industry newly legalized in the state – casino gambling.
“When they told us that legalizing gaming would be an economic cure for upstate New York, we now know these casinos are looking for bailouts and help,” Griffo said in the interview.
Once approved, New York would be the eleventh state to legalize cannabis for adult use, along with Washington, D.C. Two of New York’s border states – Vermont and Massachusetts – have legalized cannabis use for adults along with Canada, which borders the state to the north. New Jersey is also expected to legalize sometime in 2019.
There is no timeline for when the bill will move out of the finance committee, what amendments could be made, or when sales would begin; however, with Cuomo including revenues from the market in his 2021 budget, sales could commence in 2020 if lawmakers pass the legislation this session.
The first cannabis sales in Ohio occurred Wednesday morning, according to an Ohio 10 TV report.
While licenses have been issued to more than 56 dispensaries, only four were open for the first day of sales: two in Wintersville, one in Canton, and one in Sandusky. A fifth is expected to open sometime this week just outside of Cleveland, as well.
Currently, just flower and similar plant materials are available to Ohio patients. Only cannabis growers — not processors or manufacturers — have been given certificates of operation by the state. An ounce is currently retailing in Ohio medical dispensaries for about $500.
Ohio’s medical cannabis program has been plagued by delays. Originally sales were to begin on September 8 of last year. The complicated license approval process and the low number and quality of applications are to blame, according to regulators.
Ohio Senate Minority Leader Kenny Yuko, a cannabis legalization advocate, criticized the state for its delays on the first day of sales. However, he urged the new governor to prioritize the program’s completion. Filling out the number of dispensaries in the state and getting processor licenses issued might be “An opportunity for the new governor to do right by people who are suffering,” said Sen. Yuko.
On the last day of the Lift & Co. Cannabis Business Conference in Vancouver, someone distributed sample packages of cannabis candy on windshields and other public places, causing a government official to call for a crackdown, the Vancouver Sun reports.
Jas Johal, a member of the B.C. legislative assembly, said, “It’s time to start enforcing.”
“Clearly some of these companies feel emboldened and have gone as far as marketing these products by putting them on windshields. They need to be reminded that this is not acceptable, that this is a public hazard. It’s an issue of public safety at the end of the day and it concerns me deeply.” — Jas Johal, BC MLA, via the Vancouver Sun
The distributed candy was branded by Earth’s Edibles and directed attention to earthsedibles.ca. The owner of Earth’s Edibles, Adam Osborne, told reporters that his business had nothing to do with the incident. “There is definitely some espionage going on,” Osborne said.
Whoever distributed the cannabis has broken Canadian federal laws. Edibles themselves are not even legal to produce in Canada, yet. The person responsible could be charged with trafficking as well as laws regarding distribution to minors.
It’s unclear which policing group would be responsible for the investigation. Some say the Vancouver police are responsible, though representatives of the B.C. government said the issue is federal. Jas Johal said he welcomed an investigation by the Vancouver law enforcement and would retain evidence he found.
A newly-formed organization in Minnesota is talking to legislators about introducing legalization legislation as early as the end of the month, The Star Tribune reports.
The organization, Minnesotans for Responsible Marijuana Regulation, is comprised of members with backgrounds in other Minnesota nonprofits. Members on the group’s steering committee have served with the Jewish Community Action and the Second Chance Coalition; the Mayor of Minneapolis is also on the committee.
The group aims to build support across the state by expanding their coalition and hosting educational events. “A lot of the early work that we’re going to have to do is fact-based,” said founder Leili Fatehi.
Fatehi hopes to address the many misconceptions prohibition has caused regarding cannabis’ risks and benefits. The group will organize its efforts via its website, mnisready.org.
While Minnesotans for Responsible Marijuana Regulation is currently talking to legislators about launching a bill, cannabis legalization was not on the short list of priorities listed by Minnesota House Democrats.
There are currently 10 U.S. states that have opted into ending cannabis prohibition and several more are expected to legalize later this year.
The current nominee for the post of Attorney General, William Barr, said in his confirmation hearing that he “will not go after” cannabis businesses operating in states with legalization, The Associated Press reports.
Responding to questions posed by Sen. Cory Booker (D-New Jersey) and Sen. Kamala Harris (D-California), Barr referenced the Cole Memo, an Obama-era guidance for the Department of Justice that was rescinded last January by anti-cannabis former Attorney General Jeff Sessions. That document previously protected cannabis businesses in states that had legalized from federal interference. Since the memo’s cancellation, however, there was renewed uncertainty regarding federal intervention with state-legal markets.
Barr even admitted in the hearing that the “current system is untenable,” suggesting that Congress should pass legislation to address the disparity between state and federal laws.
“Mr. Barr is correct in acknowledging that many Americans rely on the legal cannabis industry and the successful state marijuana programs operating throughout the country today. His pledge not to use Department of Justice resources to undermine state laws provides assurance to over one hundred thousand cannabis industry employees, thousands of legal businesses, and the many state and local governments reliant upon marijuana tax revenue.” — Aaron Smith, executive director of the National Cannabis Industry Association, in a press release
Barr’s confirmation is still pending but, at this point, he is expected to be confirmed to the post.
Thailand has given patent-pending status to several applications for specific cannabis extracts made by GW Pharmaceuticals and partner Otsuka Pharmaceutical, according to a VOA News report.
According to cannabis advocates in Thailand, members of the Thai Department of Intellectual Property rushed the initial inspection of patent applications by GW Pharmaceuticals and its partner.
According to Thai law, it is impossible to patent plant extracts; the patents filed violate that law, advocates said. While some of the applications cover legitimate medicine recipes, activists said not all of them were.
“But there has been a few of them that actually just patent the substance itself — the substance that’s derived from cannabis like they were trying to patent THC, CBD, THCA, you know all those named substances, the active ingredients of cannabis. It actually violated the patent policies of Thailand but the fact that the actual application is still pending within the actual patent application process without being cancelled, that’s a big problem that we are having right now.” — Chokwan Kitty Chopaka, activist with Highland Network, via VOA News
The fact that the patent applications were approved and moved to the pending stage and not canceled outright has left many outraged in Thailand. There have been fears since before medical cannabis was legalized that foreign interests would show up and control the market. GW Pharmaceuticals already controls the patent for Sativex, the first cannabis-based prescription drug in the U.S.
Prime Minister Prayut Chan-o-cha even addressed the controversy, saying that he might use powers granted to him by Thailand’s military government to cancel the patents himself. It remains to be seen exactly what will happen next in the patent process.’s
Newly-minted Illinois Governor J.B. Pritzker said in his inaugural address that he will work with the state legislature to legalize cannabis in Illinois, according to a Marijuana Moment report.
Gov. Pritzker, a Democrat, made cannabis legalization one of the big issues of his campaign. He even held a press conference in front of a cannabis dispensary while campaigning.
“In the interests of keeping the public safe from harm, expanding true justice in our criminal justice system, and advancing economic inclusion, I will work with the legislature to legalize, tax and regulate the sale of recreational cannabis in Illinois.” — Gov. J.B. Pritzker, in his inaugural address
According to earlier statements, Pritzker intends to move forward on legalization immediately. Legalization in Illinois is expected to create 24,000 jobs and generate more than $500 million in tax revenue.
Illinois has also been working to advance an expungement bill: in December, it received new support from a prominent legislator. Now, with Pritzker in office, it may have additional momentum.
Legislation regarding statewide legalization has yet to take shape, though a placeholder bill has already been filed by a Democratic state senator.
Newly-elected California Gov. Gavin Newsom’s state budget shows that by the end of June the state expects to collect just $355 million in cannabis taxes, about half of what was previously projected, according to a MarketWatch report.
Experts say that the reality is a majority of California cannabis consumers still purchase on the illicit market. Some estimates indicate that 80% of purchases may still be from unlicensed sources.
Gov. Newsom is seeking increased spending for regulatory programs, hoping to force more unlicensed businesses into the legal market. California’s top cannabis official Lori Ajax said she intends to license more businesses and crack down on unlicensed operators this year. However, one speedbump in her plan is the fact that more than half of the municipalities in California have not established cannabis regulations, yet. That means businesses can’t operate there at all, as local licenses are required before operations can begin.
The issue at hand is not just licensing. Josh Drayton of the California Cannabis Industry Association said that steep taxes have kept people purchasing from their dealers. Under California law, there are multiple levels of taxation for the industry. While the state collects 15 percent, other levels of local and regional government are permitted to add their own taxes, which has resulted in tax levels approaching 50 percent in some localities.
Newsom says he is tackling the problem and that he will inspect the state’s cannabis distribution pipeline and investigate claims that local governments are gouging cannabis businesses.
At a press conference on Monday, Florida Gov. Rick DeSantis (R) said his administration will be moving medical cannabis laws forward in 2019, in particular ending the previous governor’s ban on smoking cannabis, according to the Pensacola News Journal.
Florida’s medical cannabis program was created following a landslide ballot initiative in 2016 but has faced — in Gov. DeSantis’ own words — heavy “foot-dragging” by state officials. One particularly contentious piece of litigation, a ban on smoking cannabis products established in 2017, was not included in the voter-approved initiative and many patients felt like their votes were being overruled when officials enacted the ban. Voters were also upset by a limit set in 2017 on the number of cannabis licenses that would be issued.
A lawsuit brought against the smoking ban was upheld by a judge, who ruled that the smoking ban was against the state constitution. Previous Gov. Rick Scott appealed the decision but final judgment wasn’t passed by the time he left office. Now, Gov. DeSantis told reporters that the appeal will be dropped and that he intends to return to the original spirit of the law passed by voters in 2016.
“I think a lot of voters were frustrated that they don’t think that it has been. They think there’s been a lot of foot-dragging. So my job is, when the people speak, you have to listen. This was not an amendment that was really that close. It was like 72 percent.” — Gov. Rick DeSantis, via the Pensacola News Journal
Gov. DeSantis says he will be working together, instead of against, well-known proponents of medical cannabis in the state and hopes to finally launch a proper Florida cannabis program.
A new bill introduced to the Washington state legislature seeks to allow young patients to consume medical cannabis on school property, the Sequim Gazette reports.
Bill HB 1060 was introduced to the Washington legislature by Rep. Brian Blake (D-Aberdeen). Within the proposal, student patients must also meet the criteria of the state medical cannabis law and be authorized by a doctor to consume medical cannabis. The bill would also allow local schools to have the final say on the issue.
The bill would allow the parent or guardian of the student-patient to administer treatment at the school, no longer requiring the student to leave campus to receive the treatment. Both the minor and the parent or guardian must be registered with the medical cannabis database and have their medical card with them.
This simplifies the administration of medicine to students, meaning they will less miss time in school and their guardian will be able to go about their day that much more quickly.
HB 1060 will be considered during Washington‘s legislative session, which runs from January 14 to February 22.
The nonprofit Cannabis Trade Federation (CTF) has hired 15 lobbyists in an effort to pass the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act in 2019, The Hill reports.
The bipartisan STATES Act was introduced by Sens. Cory Gardner (R-Colorado) and Elizabeth Warren (D-Massachusetts) in 2018. It was reported at the time that Trump had said he would support the bill if it made it to his desk. Little progress was made, however, as Republicans in control of many key committees and both houses of Congress blocked the reforms.
“So [the STATES Act is] the one piece of legislation from our intel that we think we have a legitimate chance to pass into law that would fundamentally address all of the major issues that the cannabis industry faces today.” — Neal Levine, CEO of the CTF, via The Hill.
The bill’s main purpose is to modify the Controlled Substances Act to allow for each state to pass its own legislation regarding cannabis. Any business operating legally under state law would be allowed access to services such as banking and insurance, which are currently unavailable due to federal prohibition.
The 15 lobbyists hired by the CTF are just the beginning, said CEO Neal Levine. The CTF is seeking an end to the excessive tax penalties for the cannabis industry, as well as fears of “the Department of Justice kicking in our doors.”
The organization wants to continue expanding to better represent cannabis business interests on the federal level.
“This is all part of the cannabis industry growing up, coming into the mainstream, acting like every other industry that’s out there,” said Levine. “This is just the natural part of our evolution.”
With neighboring states beginning to opt out of cannabis prohibition, Rhode Island Gov. Gina Raimondo (D) said she will call for the legalization of adult-use cannabis this week, according to a Providence Journal report.
Gov. Raimondo will include her legalization proposal in her budget plan for the next fiscal year, starting July 1.
Cannabis reforms are making a huge splash in New England, with legalization already established in nearby Maine, Massachusetts, and Vermont; New York and New Jersey are also both positioned to legalize in 2019.
“I will say, I do this with reluctance. I have resisted this for the four years I’ve been governor. … Now, however, things have changed, mainly because all of our neighbors are moving forward [with legalization].” — Gov. Gina Raimondo (D), via The Providence Journal
Gov. Raimondo’s proposal would create one of the most restrictive adult-use markets in the U.S., with rules blocking both home grows and high-potency concentrates like dabs. Her proposal would also establish five-milligram dose limits for edibles infused with THC. The restrictions, according to the governor, are aimed at reducing health and safety issues reported in other legalized states.
If accepted by lawmakers, the governor’s proposal would see adult-use retailers opening in Rhode Island by January 2020.
“We’re not an island,” said Gov. Raimondo. “Like it or not, we’re going to be incurring public safety and public health expenses because it’s legal in Massachusetts.”
Cannabis regulators in Ontario, Canada have announced the winners of the first 25 cannabis retail licenses in the province, according to the Financial Post.
Last week, the province opened a lottery for the first 25 licenses, though the limit is temporary. Now, regulators announced the lottery winners for operating a brick-and-mortar retail dispensary. In a surprising move, 64 percent of winners are not already established companies but rather Sole Proprietorships, or individuals.
Lottery winners now have until January 18 to submit a full Retail Operator License Application and pass a background check. Future licensees also must now pay $6,000 and obtain a letter of credit at a $50,000 minimum.
Should any of the winners fail to meet those requirements, Ontario regulators will begin pulling from the waitlist. Regulators have also included a built-in time pressure: if approved applicants do not have a store up and running by the end of April, they’ll be fined $25,000.
Canadian cannabis producer Aphria, which was accused in December by a short seller and then targeted by a hostile takeover, is changing up its senior leadership, MarketWatch reports.
Aphria is still fending off a hostile takeover after facing accusations of fraudulent financial reporting from Gabriel Grego — a well-known short-seller with Quintessential Capital Management — surfaced in December, causing Aphria share prices to plummet. Grego said that company insiders were playing a shell game with certain acquisitions in order to enrich company insiders at shareholder expensive. Aphria said the accusations were baseless and launched an internal investigation to prove that to shareholders.
After the accusations, however, the board removed CEO Vic Neufeld from his position as Chairman of the Board.
Then hostile bid to acquire Aphria was made by Green Growth Brands Ltd. in January. Aphria’s leadership denied the bid, saying it undervalued the company.
Notably, investment firm Green Acre Capital, which Aphria gave more than C$30 million for the first fiscal quarter, is an investor in Green Growth, though company representatives say they have nothing to do with the hostile bid.
The original five-year commitment for CEO Vic Neufeld and Co-Founder Cole Cacciavillani expired at the start of the new fiscal year. Both leaders announced they will be leaving their positions at the company, though Cacciavillani and Neufeld will remain on the Board of Directors.
Aphria said it is looking for a “globally-minded executive leadership team for the long-term benefit of the company’s patients, shareholders, customers, and employees.”
Following the announcement of the change in leadership, Aphria shares rose 4 percent.
Rep. Earl Blumenauer (D-Oregon) introduced bill H.R. 420 to the House of Representatives on Wednesday, which, if signed into law, would remove cannabis from the Controlled Substances Act and charge the Bureau of Alcohol Tobacco and Firearms with regulating it, Willamette Week reports.
The bill proposes that the federal government treat cannabis like alcohol. It would decriminalize cannabis completely and allow more latitude for states that have already legalized cannabis, such as banking system access.
“While the bill number may be a bit tongue-in-cheek, the issue is very serious. Our federal marijuana laws are outdated, out of touch and have negatively impacted countless lives. Congress cannot continue to be out of touch with a movement that a growing majority of Americans support. It’s time to end this senseless prohibition.” — Rep. Earl Blumenauer, via Willamette Week
The bill would allow federal funding for cannabis research to flow more easily and allow funds currently used for enforcement to be allocated elsewhere.
The move would also open interstate commerce for cannabis, a potential huge boon for states with functioning cannabis systems. Notably, Rep. Blumenauer’s home state of Oregon has already started pushing for a regulatory structure that would allow the state to sell its surplus cannabis to other states.
While arrests in New York City for cannabis are down overall, the remaining arrests still show a huge racial disparity in enforcement, The Fresh Toast reports.
Numbers released by the office of Mayor Bill de Blasio show that while arrests are less than half of what they were in 2017 — thanks largely to a decision by New York City to not arrest for simple cannabis possession — 89 percent of those arrested in 2018 were Black or Hispanic. White people only comprised 7 percent of arrests.
“This administration has taken a dead aim at disparity by dramatically reducing marijuana arrests, and developing a plan for legalization that aims to right historic wrongs. But it’s naïve to think that an issue as old and complex as this can be unraveled and solved by the snap of anyone’s fingers. It’ll be a challenge that this administration, the next administration and those who follow will have to constantly focus on — and we will continue to do so.” — Olivia Lapeyrolerie, Spokesperson for the Office of the Mayor, via The Fresh Toast
Total cannabis arrests in 2018 totaled 7,348; that’s a huge reduction from the 17,121 cannabis arrests in 2017. It’s clear, however, that simply slowing down the rate of cannabis arrests does not eliminate racial disparity. While the Mayor’s office has committed to doing further work on the problem, some criticize the de Blasio administration’s lack of criminal justice reform as a whole.
“We are policing marijuana use in communities of color more aggressively than we are in white communities. That has not changed,” said City Councilman Rory Lancman.
Republican lawmakers in the Tennessee legislature say they are planning to introduce medical cannabis legislation this session, according to a WMC Action News 5 report.
State Sen. Janice Bowling (R-District 16) and state Rep. Ron Travis (R-District 31) say they plan to introduce legislation in Tennessee that would legalize medical cannabis access. They say they have learned from the shortcomings of previous attempts to give patients medicinal access to the plant and they expect to find success in 2019.
The lawmakers’ proposal would establish state-licensed dispensaries that be open to patients with doctor recommendations for medical cannabis. First, however, patients would be required to get a cannabis ID card from the state.
“I have been in the fight against opioids and pill mills. Opioids have become a tragedy for Tennesseans. Our constituents can use a natural and effective option for pain relief that is not controlled or pushed by Big Pharma. When I see medical studies showing that states with medical cannabis programs had an average 23 percent drop in opioid prescription use and overdoses, I see a real option we can use.” — Tennessee State Sen. Janice Bowling, in a press release
“I’m glad more and more Republicans are doing it, it’s just you know waiting to see what type of bill it is,” cannabis advocate Lee Otts told WMC Action News 5.
Otts expressed some concern, however, that lawmakers may try to limit cannabis access to just a few specific conditions: “Why does the legislation have any right to say this medical condition is more important than this one?”
“It needs to be between the patient and the doctor,” he said.
Medical cannabis access for at least some conditions has been approved in 33 U.S. states, so far.
Tennessee is one of the few remaining states that has not approved any major cannabis reforms.
Massachusetts’ Cannabis Advisory Board’s public safety subcommittee voted to recommend that social consumption lounges should be legalized in the state, according to an NBC Boston report.
The board also voted to allow home delivery of cannabis products unanimously. Social consumption spaces were recommended in a 5-2 vote.
Walpole Police Chief John Carmichael, one of the two dissenters, argued against cannabis cafes on the grounds that they could lead to more intoxicated drivers on the roads. Police representatives in the subcommittee also said they expected cannabis cafes would be targets for robberies.
The recommendation has been sent to the state’s Cannabis Control Commission for final consideration. The Cannabis Control Commission is a five-member panel that oversees all of Massachusetts’ cannabis regulations.
Maryalice Grill, press secretary for the Commission, released a statement that said the Commission will need to reopen and amend current regulations in order to make the changes to allow cannabis lounges and delivery.
Massachusetts almost legalized cannabis cafes and home delivery when the state initially legalized in 2017. However, after reservations were expressed by the Governor, the previous regulations were scrapped. Now, hopefully, they will be re-introduced.
Alaska became the first state to establish rules for social use cannabis lounges in December 2018; otherwise, cannabis cafes have so far been allowed strictly on a city-by-city basis.
A potential whirlwind of cannabis reforms is brewing in Virginia, where state lawmakers introduced two separate adult-use legalization bills this week while Gov. Ralph Northam (D) repeated his endorsement for decriminalizing the plant in his State of the Commonwealth speech on Wednesday night.
Pending legalization bills
Virginia’s legislative session officially convened on Wednesday, January 9 and there are already several bills aimed at major cannabis reforms.
House Bill 2371, introduced on Tuesday by Virginia Del. Steve Heretick (D), aims to fully legalize and regulate the consumption and distribution of cannabis for adults who are 21 or older. The bill would grant cannabis licensing rights to the Virginia Department of Agriculture and Consumer Services.
“The time has come for adults to have the freedom to decide for themselves whether or not to consume marijuana in the privacy of their homes,” Del. Heretick said in a press release on Tuesday.
Meanwhile, Democratic Del. Lee Carter introduced House Bill 2373, which is similarly aimed at the legalization of adult-use cannabis.
And shoutout to @SteveHeretick for his own legalization bill that takes a slightly different approach to the same end result!
During his election campaign, Gov. Northam repeatedly expressed support for decriminalizing cannabis. He reiterated his support for ending cannabis prohibition last night towards the end of his annual State of the Commonwealth address.
“We shouldn’t use valuable law enforcement time, or costly prison space, on laws that don’t enhance public safety,” Northam said. “So I’m proposing that we decriminalize simple possession of marijuana.”
“Current law imposes a maximum 30 days in jail for a first offense of marijuana possession. Making simple possession a civil penalty will ease overcrowding in our jails and prisons and free up our law enforcement and court resources for offenses that are a true threat to public safety.” — Gov. Ralph Northam
Currently, several decriminalization bills are pending in the state legislature. Similar bills were introduced last year but failed to come to any fruition.
The 2019 Virginia legislative session is scheduled to last 45 days, ending on February 23.
Medical cannabis may soon be legal in Kentucky, thanks to a small group of Republican lawmakers who introduced a bill that would create a regulated market and give doctors the ability to prescribe cannabis, The Lexington Herald-Leader reports.
Many leaders in the Kentucky legislature, however, remain skeptical. State Senate President Robert Stivers told The Lexington Herald-Leader, “Where is the study? Deliver me the study. An appropriate Tier 3 study with control groups that says it is medicinal or therapeutic.”
Research, of course, is unfortunately hard to come by, as most know, due to cannabis’ federal status as a Schedule I substance. Sponsors of the bill, however, seem to have a clearer picture of the real issue at hand.
“I’ve never taken an illegal drug in my life. But let me tell you, and I want to say it clearly, and I would say it in front of every camera in Kentucky. If my son or my wife or my parents or one of my brothers or sisters would benefit from medical marijuana, tell me where to get it. Even if it’s illegal. And I would submit that 99 percent of Kentuckians would do the same thing.” — State Rep. Jason Nemes (R-Louisville), bill co-sponsor
House Bill 136 — a 149-page piece of legislation — contains language that would create a regulated medical cannabis system overseen by the Kentucky Office of Alcoholic Beverage Control. The state would license dispensaries and track product via a state database and, in some limited cases, allow home grows.
House lawmakers are confident the bill will pass their half of the state Congress. Whether or not the bill would pass a vote in the state Senate, however, remains unclear.
Polling data from Kentucky shows that a majority of voters support medical cannabis.
