Canadian Company Developing First Beer Brewed From Cannabis

7/24/2018

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Toronto-based Province Brands is developing the world’s first beer brewed using raw materials from the cannabis plant, The Guardian reports.

Other companies have undertaken similar projects, but those companies typically create a beer from barley and hops and then infuse the beverage with cannabis or hemp oils, according to Province Brands’ Dooma Wendschuh.

“That’s not what we do. Our beer is brewed from the stalks, stem and roots of the cannabis plant.” — Dooma Wendschuh, CEO and co-founder of Province Brands, via The Guardian

The final product is a gluten-free, non-alcoholic beer that will get you high. “The beer hits you very quickly, which is not common for a marijuana edible,” Wendschuh said.

Wendschuh told The Guardian he moved from Miami to Toronto in 2016 to capitalize on Canada’s pending legalization. He said the idea for a purely cannabis-based beer was born from the desire for something to “serve the role that alcohol serves in our society … using this monumental sea change that is happening in our world.”

“I don’t think there was anywhere else in the world where we could do this business. Canada is already leading the world in creating an industry around medical cannabis and we expect them to continue to lead the world in trading and industry around adult-use cannabis.” — Dooma Wendschuh, CEO and co-founder of Province Brands

According to Wendschuh, the beer has gone through several iterations during its development. The earlier prototypes “tasted horrible … like rotten broccoli,” he said, but more recently the beer has settled into a “dry, savoury” product that is “less sweet than a typical beer flavor.”

Adult-use cannabis will become legal in Canada on October 17 — edibles products, however, will not be available at market launch. Experts predict it will take about a year before edibles, including beverages, become legal under the national cannabis regulations.

In May, Province Brands received a $300,000 grant from Ontario’s government to help develop the beer.

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The large cola of a mature cannabis plant just before it's harvested.

Sweet Leaf Receives Stay of Action for Destruction of Denver Cannabis Products

7/24/2018

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Sweet Leaf, the Colorado-based cannabis retailer chain who had its Denver licenses revoked earlier this month due to an alleged “looping scheme,” has won a stay of action for the destruction of all the company’s Denver-based cannabis products, according to a Marijuana Business Daily report. The stay was granted yesterday in Denver District Court.

“Until the legal process is complete, there will be no action by Denver to verify the marijuana is destroyed.” — Eric Escudero, communications director for the Denver Department of Excise and Licenses, in an email to Marijuana Business Daily

Sweet Leaf’s alleged looping scheme was discovered late last year; 12 individuals were arrested in December for their involvement. Law enforcement representatives claimed the retailer was breaking rules related to the daily maximum cannabis purchase amounts and products were being purposefully diverted to the illicit marketplace. All of the company’s 26 Denver licenses were revoked earlier this month.

Sweet Leaf’s CEO and co-owner Matthew Aiken maintained the company’s innocence in an email last week, according to the report.

“Sweet Leaf continues to maintain our innocence, and we will continue to fight these Stalinist tactics used by the City of Denver. We will rigorously exhaust every option of appeal. Furthermore, we will continue to fight for the rights of our industry to be treated like businesspeople.” — Matthew Aiken, CEO and co-owner of Sweet Leaf, via MJBizDaily

Sweet Leaf still has several Colorado stores outside the city of Denver — and one in Portland, Oregon — that have not been shut down.

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Canadian Company Tilray Has First U.S. Cannabis IPO

7/23/2018

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Canadian cannabis producer and processor Tilray made history last week as the first cannabis company to hold an initial public offering on the U.S.-based Nasdaq stock exchange, according to a report from Fox Q13. Other Canadian cannabis companies have traded on U.S.-based stock exchanges — Tilray, however, is the first to do so with an IPO.

Despite being legal in nine states and the District of Columbia, no U.S.-based cannabis companies have been publicly traded because of federal drug and money-laundering laws.

Tilray stock opened at $17 per share on the Nasdaq and closed after the first day of trading at $22.55. As of Monday afternoon, the stock is trading over $32 per share, almost double the opening price. Some have concerns that cannabis company stocks have been overvalued on the Canadian market as well as the U.S. due to the excitement around an entirely new market opening up.

“Right now a lot of investment has been highly speculative. Those valuations feel a little supercharged. We expect some kind of correction in the near future.” — John Kagia, market analyst for New Frontier Data, via Q13 Fox

Tilray plans to use the money raised by the IPO to expand growing and processing operations and eliminate debt with Privateer Holdings, the Seattle-based firm that controls Tilray currently. Canada‘s adult-use cannabis market is expected to be between $5-9 billion at launch.

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Cannabis Edibles Attractive to Both Newly Curious and Former Users

7/23/2018

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A new study from cannabis market research firm High Yield Insights shows that consumption trends for cannabis-infused edibles consistently spike in a newly legalized marketplace and that edibles are particularly effective at attracting curious and new users as well as former cannabis users.

41 percent of the study’s respondents reported increasing their edibles consumption after legalization. The study also found that an edibles customer’s journey is more parallel to mainstream food and beverage shoppers than other facets of the cannabis industry; specifically, 67 percent of edible customers report basing their purchase decisions on flavor in addition to price point  — in most other cannabis categories, however, “price plays an overwhelmingly important role,” according to the report.

The study also suggests that “those consumers who prefer edibles are more likely to be lighter users (using one time or less per month), newer to using (less than 5 years), female, college-educated and high-income earners.”

Additionally, edibles customers are just as likely to self-identify as a medical user than as a recreational user.

“To anticipate the cannabis market’s direction, companies need to understand the customer’s mindset and purchase journey. We’re finding many customers are receptive yet ill-informed or hesitant due to unsatisfactory first experiences. Customer journeys may be well worn paths in traditional consumer packaged goods but are relatively new in cannabis. By understanding how consumers make decisions, manufacturers are better able to identify ways to improve the purchase experience and, ideally, enhance their product lines.” — Mike Luce, co-founder of High Yield Insights, in the report

 

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British Journal of Pharmacology Review: Cannabis Effective Treatment For Cancer

7/23/2018

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A review of pre-clinical studies by the British Journal of Pharmacology has found widespread evidence indicating that phytocannabinoids from the cannabis plant are effective treatments for many facets of cancer, ScienceDaily reports. The review included dozens of studies from a wide range of academic institutions.

“In addition to the well‐established palliative effects of cannabinoids in cancer therapy, phytocannabinoids, synthetic cannabinoid compounds as well as inhibitors of endocannabinoid degradation have attracted attention as possible systemic anticancer drugs. As a matter of fact, accumulating data from preclinical studies suggest cannabinoids elicit effects on different levels of cancer progression, comprising inhibition of proliferation, neovascularisation, invasion and chemoresistance, induction of apoptosis and autophagy as well as enhancement of tumour immune surveillance.” — Excerpt from abstract of “Anti Tumoural Actions of Cannabinoids,” Burkhard Hinz, Robert Ramer

The authors of the review have used the new meta-data to argue for clinical studies with patients, instead of pre-clinical lab work, of cannabinoids’ effect on cancer. Cannabis prohibition and its status as a Schedule I narcotic, according to the U.S. Government, has prevented clinical research with cannabinoids until the last ten years. A lack of preclinical background has since been rectified, allowing a scientific foundation that allows doctors and researchers to now consider and design clinical studies to understand the proper structures for cancer treatment using cannabinoids, both synthesized and directly from the cannabis plant.

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Study: After Legalizing Cannabis, Police Effectiveness Up in Washington & Colorado

7/20/2018

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A study by researchers at Washington State University has found evidence of “demonstrable and persistent benefit” to police departments’ effectiveness in Washington and Colorado since the states voted to legalize cannabis in 2012.

Researchers used monthly FBI data to investigate crime clearance rates for the states from 2010 to 2015; crimes are normally considered “cleared” when a suspect is identified, arrested, and entered into the judicial system for prosecution.

“Our models show no negative effects of legalization and, instead, indicate that crime clearance rates for at least some types of crime are increasing faster in states that legalized than in those that did not.” — WSU researchers, via The Washington Post

Researchers looked at violent crime and property crime clearance rates — most specifically, burglary and vehicle theft — and found marked boosts after the states’ legalization laws took effect in comparison to the rest of the country.

“The clearance rate for these two offenses increased dramatically postlegalization. In contrast, national trends remained essentially flat.” — WSU researchers

The researchers noted that this data does not prove legalization is the direct cause of the changes in clearance rates. Other variables in police activity — such as new policing strategies or an increased use of overtime hours — could certainly have played a role. The study authors did note, however, that there were not any other major policy changes at that time in those states to account for the boosted police effectiveness.

“We think the argument that legalization did in fact produce a measurable impact on clearance rates is plausible.” — WSU researchers, in the study’s conclusion

 

 

 

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Pennsylvania Auditor Anticipates $1.66 Billion Adult-Use Cannabis Market

7/20/2018

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Pennsylvania Auditor General Eugene DePasquale has released a special report that says Pennsylvania‘s legal cannabis market would comprise more than $1.66 billion, which, if taxed at 35 percent, would produce $581 million dollars in tax revenue for the state, according to a report by WGAL Lancaster. The numbers in DePasquale’s report are based on an average yearly spend of $2080 per cannabis user, from data based on legal markets in Washington and Colorado.

DePasquale has long been a proponent of legalizing cannabis for adult use. He said tax dollars from legal cannabis could be used to help fund opioid addiction treatment or better health care for veterans and children.

DePasquale said in the introduction of the special report:

“Across the U.S., state after state is regulating and taxing marijuana. This move reflects an observable shift in public perspective on adult use and on increasing acknowledgment of the financial and public health benefits associated with regulation and taxation.

“As Philadelphia and Pittsburgh have demonstrated, decriminalizing marijuana saves millions in court costs alone. But stopping at decriminalization would be a costly mistake for the commonwealth, potentially leaving more than $581 million in annual tax revenue on the table. That revenue could help balance the state budget and provide business and job opportunities — and the way to access it is for Pennsylvania to allow the cultivation, sale and purchase of marijuana.” — Excerpt, Special Report on Regulating & Taxing Marijuana

DePasquale cited a variety of benefits and potential risks in the special report, which concluded:

“Imagine how Pennsylvania could benefit from $581 million annually. That tax revenue means:

  • Balanced budgets.
  • Revived initiatives that affect Pennsylvanians’ lives.
  • Greater resources to address the opioid crisis.
  • Better health care access for veterans.
  • Hundreds of millions of dollars in criminal justice savings.
  • The creation of a booming $1.66 billion market that will create jobs.
  • More employees able to qualify for all types of jobs because they do not have criminal records for simple possession.
  • The benefits of regulating and taxing marijuana are undeniable. As its neighbors weigh the issue, Pennsylvania must act to create its own marijuana market. Otherwise, it runs the risk of losing the revenue from potential customers to other states.

“It is time for Pennsylvania to stop imagining the benefits of marijuana and realize them.”

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More Delays Plague Ohio’s Medical Cannabis Program

7/20/2018

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The law establishing Ohio’s medical cannabis program mandates the program be fully operational by September 8 — hopes for meeting that deadline, however, are already doomed due to delays in the licensing of cannabis cultivators. But now, Ohio patients will likely have to wait even longer than expected as delays are affecting other parts of the process, including the statewide patient registry and the licensing of cannabis processors, according to a Cleveland.com report.

Ohio’s patient registry was supposed to come online in July in preparation for the market’s September launch.

With cannabis laws in limbo, patients have been able to acquire letters from their doctors granting an “affirmative defense” against cannabis enforcement actions. Now that cultivators are behind schedule, however, officials plan to sit on launching the registry until less than 60 days before products hit dispensary shelves because the “affirmative defense letters” expire 60 days after the registry launches, which would leave patients vulnerable to prosecution.

Meanwhile, applications for cannabis processors — who will manufacture the products in Ohio’s pending marketplace — left a lot to be desired. Of the 104 applications, fewer than 40 met the minimum standards. 

Department of Commerce spokesperson Mark Hamlin said that the applications’ scoring process was taking longer than expected, but that all companies who met the minimum requirements would receive provisional licenses in the coming weeks.

Hamlin also said that some of Ohio‘s smaller licensed cultivators have requested extensions to the nine-month preparation period because their facilities will not be ready.

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Florida Approves $13.3 Million In New Funding for MMJ Office

7/20/2018

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A joint legislative committee of Florida lawmakers has approved an additional $13.3 million in funding for the Office of Medical Marijuana Use (OMMU), even though lawmakers have been frustrated with the office for moving slowly on the medical cannabis system’s implementation, the Tampa Bay Times reports.

The money is intended for a seed-to-sale tracking system, to cover legal fees, to establish a patient identification card system, and to license four more medical cannabis operators.

Lawmakers are reportedly irritated by the unusual way in which the office acquired its funding. The current state budget went into effect last month, in which the Office for Medical Marijuana Use was awarded just $1 million, far less than it actually needed for the year. Some lawmakers complain that the timing of the request for funds was deliberately delayed to allow the OMMU to avoid conflict with lawmakers.

“Most if not all of the costs that are outlined in this request have been known or anticipated for quite a while. Why are we using a process that essentially is meant for fixing mistakes… to fund the implementation of a constitutional amendment that 71 percent of Florida voters approved almost two years ago?” — Rep. Janet Cruz (D-Tampa), in the report

The OMMU claims that legal and administrative disputes, as well as fallout from Hurricane Irma, was the cause of its slow progress and poor budgetary planning. Lawmakers, previously having withheld salaries for officials in that department in order to see progress, nonetheless approved the latest funding request.

“I’m disappointed that we’re dealing with it now. [We’re] looking for solutions, not to assign blame… We stand ready to fund what needs to be funded.” — Sen. Rob Bradley (R-Fleming Island), via The Tampa Bay Times

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Dr. Jason Pirozzolo: Helping Doctors Understand Medical Cannabis

7/19/2018

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Editor’s note (4/8/21): Dr. Jason Pirozzolo is currently being investigated in relation to sex trafficking allegations against Florida Rep. Matt Gaetz — click here for more on that story.

Dr. Jason Pirozzolo is a co-founder of The American Medical Marijuana Physicians Association, a collection of physicians and medical researchers who advocate for increased understanding and acceptance of cannabis as medicine.

In this episode of the Ganjapreneur.com podcast, Dr. Pirozzolo joins podcast host TG Branfalt to discuss how mainstream medicine and medical cannabis have begun to intersect, the myriad potential benefits of medical cannabis for professional athletes, why medical schools’ curriculums are taking so long to adapt to the latest cannabis research, and more!

You can tune in to this interview via the player below, or continue scrolling down to find a full transcript of this Ganjapreneur.com podcast episode.

Listen to the podcast:

Read the transcript:

TG Branfalt: Hey there. I’m your host, TG Branfalt, and you are listening to The Ganjapreneur.com podcast where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today I’m joined by Dr. Jason Pirozzolo. He’s the co-founder of The American Medical Marijuana Physicians Association. How are you doin’ this afternoon?

Jason Pirozzolo: I’m doing great. Thanks for having me, TG.

TG Branfalt: Hey, I’m totally thrilled. I really love having members of the medical community on the show. There’s always a plethora of stuff to talk about. Before we get into sort of the nuts and bolts, man, tell me about yourself. You know, what’s your background? What do you specialize in? How did you end up and get involved in cannabis advocacy?

Jason Pirozzolo: So, that’s a good question, TG. I currently specialize in sports medicine. But back in 2014, I was approached by various legislators and legislative staff regarding the creation of the original framework for allowing low THC to be recommended here in the State of Florida. Since then, my involvement has continued to grow and, you know, my overarching goal has always been just to ensure that doctors have the necessary education and resources to safely and effectively recommend medical cannabis for those conditions that would qualify.

TG Branfalt: So how much did you know when you were approached by the legislature about medical cannabis?

Jason Pirozzolo: Surprisingly very little. Which is actually on par with physicians nationwide. You know, they did not receive training with regards to the endocannabinoid system or medical marijuana in medical school or their fellowships. And obviously as it was deemed a Schedule 1 Substance, well, there was really no reason to. But nowadays, things are changing and The American Medical Marijuana Physician Association is kind of leading the change.

TG Branfalt: So give me some of your insights as a sports medicine doctor. You know, I’ve spoken to a couple of people who advocate for using cannabis in various forms in athletics, you know, CBD as something to help with muscle inflammation for cool down. What role do you think that medical cannabis can play in athletics?

Jason Pirozzolo: You know, that’s a complicated question and an even more complicated answer. I’d say undoubtedly, the NFL, the NFLPA leadership is really struggling with the same uncertainty that the rest of us are dealing with. They’re likely dealing with conservative legal recommendations instructing them that medical cannabis is still technically a Schedule 1 drug with no proven medical benefits. With that said, The World Health Organization has recently recommended that CBD not be internationally scheduled as a controlled substance. That is based in part on the research that has shown that CBD could have some therapeutic value for epilepsy, Alzheimer’s Disease, Parkinson’s, anxiety, pain, nausea, inflammatory bowel disease, rheumatoid arthritis, and many more.

So I think that’s the largest barrier at this point to having more widespread and legitimate use of these products in the NFL and other professional associations for that medicine.

TG Branfalt: So do you think that the NFL is sort of the frontline to acceptance in pro sports given the physicality of the sport and that some former and current players are cannabusiness owners and advocates? You know, Ricky Williams just launched his own product. You’ve got Eugene Monroe, who struggled to open a dispensary in Maryland. You know, not to mention that there’s been a recent study that found retired NFL players use opioids at a rate four times the national average. So are we looking at the NFL as the frontline in the acceptance in pro sports? You know, I’ve read the NHL is a little more lenient. Major League Baseball is a little more lenient. The NBA, some have said that … There was a recent player who said that, you know, 89 percent of the players in that league use cannabis. So is the NFL sort of what we would look at in terms of acceptance in major sports?

Jason Pirozzolo: Yeah. TG, I would have to agree with that. I think the NFL, just based on the sheer size alone would be a candidate for qualifying as the forefront of legitimization of medical cannabis use. There is a large number of NFL athletes that use it. And I think it’s upwards of 90 percent as well. And we just have to kind of connect the dots. And I think over the next couple of years you will see the push for that. In our conference that we’re having in May, May 18th and 19th, actually is entitled The NFL And Medical Cannabis. And the reason we did that was to your point, we wanted to merge for the first time ever these two worlds of traditional Western medicine and then, you know, the alternative treatment of medical cannabis. And then do that, merge those two worlds on a foundation of high-level science. Which has never really been done before.

And I think that, you know, we’re really kind of in the beginning process here and it’s gonna take some time. You’ve got a lot of conservative legal minds telling the NFL what not to do. So we’re gonna try to put together some evidence and research and see if we can safely move this industry forward.

TG Branfalt: You know, as I said previously, there’s a recent study NFL players using opioids four times the national average. Several studies have found … I mean, it’s gone from several studies to really a giant mass movement sort of … Have found that medical cannabis could be an alternative for some patients on opioids. As a physician, what’s your take on these studies? What are you seeing? Is this something that could be … Could medical cannabis be used as a pain therapy? As a opioid … What’s the word I’m looking for here? Replacement and an exit drug?

Jason Pirozzolo: Well, TG, I think the answer to that is absolutely. I think it has to be done in the right situation. I think it has to be done very carefully under the guidance of a trained physician. But to your point again, we’ve got one of the statewide medical directors for medical marijuana treatment center actually speaking to that, you know, at our marijuana … Medical marijuana conference in May entitled Transitioning Ex-NFL Athletes From Opioids To Medical Cannabis.

Now, that’s gonna be the nuts and bolts and how to do something like this. How do you transition an NFL athlete, or any patient for that matter, from the high-level opioid use, slowly wean them down and transition them to something that’s as effective and certainly safer? That’s what we’re dealing with. It’s a crisis in Florida and nationwide. And I think everybody … As long as it’s done properly and safely and it’s based on evidence when available, I think that we’re moving in that direction.

TG Branfalt: So what are you sort of seeing from your colleagues? My wife’s actually a physician and when, you know, we first started talking about medical cannabis and the opioid thing, she wasn’t completely on board. Because, as you said earlier, it’s not something that you really talk about in med school. And she went to Berkeley, so she is a supporter of cannabis. But, you know, she wasn’t really on board with this whole … That it is as … That its efficacy is as well-documented as it’s become. Are you seeing a change from people in that you deal with, your colleagues, with regard to medical cannabis and opioids?

Jason Pirozzolo: Yes, TG. I’m actually seeing a change. It’s a slow change, but it is a change nonetheless. You have to understand, there is a dichotomy of physicians, you know? Some physicians are old school. They tend not to think as much outside of the box. And they’re trained to think a certain way. You know, when I trained at Duke University, everything was evidence-based. If it wasn’t in the journals, if it wasn’t evidence-based and you couldn’t justify your use of this antibiotic or this treatment, then you didn’t do it. Which is a very smart way of doing things. And that’s always good for the patient.

When you take that and you kind of extrapolate that mentality over to the medical cannabis world, there’s not that type of evidence yet. And the reason there’s not that type of evidence, why your wife was a little skeptical in the beginning, is very simple. It’s still a Schedule 1 drug. The federal government has made it very, very difficult to study this. To research this. So we’ve really only one institution that provides the medical cannabis for anybody that’s interested. And you’ve got to go through an enormous process just to be approved to do that research.

So that’s why there a paucity of research right now of that level. Now, there’s hundreds of thousands of anecdotal and lower level studies that are very useful in giving us ideas and giving us reason to move forward with the studies. And that’s where we stand here at The American Medical Marijuana Physician Association. We always will support more research. In fact, Congressman Matt Gaetz is in the process of working on legislation up in Washington, D.C., that will help facilitate research on the nationwide level. And those we should see a lot of good benefit from them.

TG Branfalt: So you’ve mentioned sort of, you know, one of the barriers to this is the federal government. In light of recent moves by the feds to perhaps initiate a crackdown on state-legal cannabis programs by Jeff Sessions, you know, revoking the Cole Memo, should recommending physicians be concerned about federal blowback?

Jason Pirozzolo: Good question, TG. Well, here in Florida especially, I know for a fact that Florida legislators tried to write the most protective law that they could in order to take away as much risk as they possibly could for physicians, you know? That said, The Federal Controlled Substances Act prohibits possession, manufacturing, distribution of marijuana. Therefore, you know, if physicians are practicing within the boundaries of the State law, we believe physicians are protected.

However, here’s my disclaimer. You know, our organization really advise all physicians to seek advice from counsel in their respective states to determine if that method by which that physician seeks to provide certification of conditions meets with their state’s requirements and regulations for physician certification and to additionally explore with counsel risk that the certification qualifying conditions presents under federal law as it has been historically prosecuted in that State. So that’s my wordy disclaimer, but it is important to kind of promulgate that to physicians nationwide.

TG Branfalt: In some states, physicians are required to publicly be listed on public dossier if you will that they recommend medical cannabis. And in some states, that’s been a barrier it seems to physicians signing up with the state programs. However, at the same time, without that dossier, how does a patient find a physician? So I’m not sure what the rules are in Florida, but what is your sort of take on, you know, that dossier existing? Should physicians be worried and not want to be publicly listed? It’s sort of a catch-22. But what is your take on sort of this public listing of physicians who recommend cannabis?

Jason Pirozzolo: Well, TG, as we understand it now, the biggest risk to anyone involved in the medical marijuana industry comes down to a few things. It comes down to whether the federal prosecutors believe you are involved with drug trafficking, diversion, or money laundering. However, you know, in the State of Florida, it’s also illegal as a qualified recommending physician to have any ownership or receive any monetary stipend from a licensed medical marijuana treatment center. So I think if a physician is simply practicing his or her right to free speech and making suggestions or recommendations or even certifying that the patient has a specific condition, many states it just comes down to a certification that they have this condition or that condition, which is the same thing that physicians do every day with workers’ compensation and other insurance, you know, independent exams. They’re simply certifying that this patient has this condition. And then that patient may in whatever state they reside in, it may be legal for them just to take that certification and obtain a recommendation for medical cannabis.

So I think as long as physicians are simply making those recommendations, that in and of itself should help to mitigate much of the risk. But again, that would be a point where they would be advised to speak to counsel in their particular state to just to ensure that there’s not a history of physicians being prosecuted. And there’s really not … Any physician that has been simply prosecuted, there’s been extraneous situations. You know, up in Massachusetts, there have been physicians that have lost their DEA license, but they had also owned what the equivalent of a medical marijuana treatment is. They actually owned a dispensary. So they were kind of double dipping, and the federal government didn’t like that too much.

TG Branfalt: Are there any other risks physicians should consider when deciding whether or not to participate in a state-approved medical cannabis program?

Jason Pirozzolo: Well, it kind of goes back to what we were just talking about, you know? The biggest risk is if … At least in the State of Florida, they co-mingle with the medical marijuana treatment centers, you know? The medical marijuana treatment centers can’t offer the physician a monetary stipend and say, “Here. If every physician you send to my clinic, we’ll pay you $50.” That is absolutely illegal in the State of Florida. So one way to mitigate the risk here in the State of Florida is to avoid any situation that would even result in any perception of impropriety.

So that’s certainly one way they can mitigate the risk here in Florida. The other ways that they can mitigate their risk is to just practice good medicine. Base everything on evidence whenever possible. You know, discuss with the patient the risks, the side effects, the potential side effects. How this whole process works. And those are things that most physicians have been trained and they do this every day. So that’s why we’re very supportive of this industry if it’s done correctly and it’s done safely.

TG Branfalt: So, you know, going back to as I’ve said, I’ve spoken to a couple of physicians on the show. Again, my wife is a practicing physician. And one of the most common things I hear is, “We’re not taught about cannabis in medical school aside from that it’s a Schedule 1 drug.” What are the barriers to medical schools talking about this? Is it just the fact that it’s still a Schedule 1 drug? Even though, you know, we now have pretty good evidence that CBD effectively treats seizures and these sort of things. Can you sort of muse on why we’re not seeing more medical schools treating this as medicine?

Jason Pirozzolo: Yeah, it’s very simple, TG. It does come down to medical cannabis or cannabis being a Schedule 1 drug still. And if a medical school that relies on research funding … Let’s say from the NIH or another federal organization … If that’s one of their mainstays of funding, that being the federal government, then they could potentially risk losing some of that funding if they are involved in medical cannabis. Now, the reality of that and whether that actually happens, I don’t know that that’s actually happened.

But again, it comes back to these medical schools, these colleges, these universities, all have legal counsel. They all have their general counsel and their entire legal team. And if I was a lawyer, I’d probably make the seam recommendation. No lawyer is gonna go out on an edge and say, “You know what? You know, I know we receive 25 million dollars from the federal government, but I think it’s okay. Let’s just go start teaching our medical students about medical cannabis. The 25 million I’m sure will be there tomorrow. You have nothing to worry about.” No lawyer is going to say that right now, because it’s a Schedule 1 drug. It just is not prudent to make that kind of a legal recommendation.

So that results in the trickle down effect. So the professors and the physicians that are teaching these courses tend to kind of get wind of that as well. And that’s why there’s a paucity of education. And that in part is one of the holes that The American Medical Marijuana Physician Association is trying to fill. You know, the high-level education. The research, the evidence that’s out there. And very slowly, you know, help any physician that is interested in this to do it the right way. Help them at least get that education that they did not get in medical school or residency.

TG Branfalt: So you have said, you know, you coming out of medical school that you didn’t know that much about medical cannabis. Now here you are. What was sort of the turning point for you or the eye-opening moment for you that you said, “Hey, this legitimate”?

Jason Pirozzolo: Well, as with most things in medicine, it starts out with personal experience. And I was very involved up in Tallahassee and I was actually able to see some of the children that had experienced a significant response to the low THC cannabis that they were taking, you know? Little girls were … You know, one specifically … I’m not gonna mention her name, but she actually had seizures almost on an hourly basis. And then her Mom was able to give her the medical cannabis and the seizures stopped. That’s something that is more impactful than really anything else as a physician.

So it makes you start to think. And once you start to think, “Is this real? Is there anything to this?” That’s when your training takes over and you try to do more research and learn about it as much as you can. And then when that happens, you know, things kind of take hold. And if you have something that has potential, like medical cannabis, and you want to see more research being done, you want to help that along. And that’s kind of where I am right now.

TG Branfalt: So what are some of the legislative issues that the Association is working on this year?

Jason Pirozzolo: Well, The American Medical Marijuana Physician Association supports any legislative issue that would really protect the physician’s license. You know, protect the physician’s practice and protect the physician’s ability to continue to practice medicine. AMMPA also supports the expansion of treatment indications as based on clinical research studies, and that’s the key. We don’t just support a widespread global, you know, expansion. It should be based on clinical research studies.

The current law does, at least in Florida, require a large amount of physician time to be dedicated to providing supporting documentation for each patient being certified. And that in and of itself can be quite burdensome. They have to show that there’s efficacy of marijuana as a treatment for that condition. They have to show that there’s support … That that treatment benefit outweighs the potential health risks. And again, that is incredibly burdensome for a busy physician. But AMMPA’s working on multiple fronts to make it easier for those physicians really by developing ways to help improve their efficiency. And also trying to roll back some of the legislative mandates that ultimately will rely then on just physicians, you know, in their extensive training and experience to dictate the standard of care. Not necessarily just going by policy that’s dictated up at the Department of Health.

TG Branfalt: So what are some of the conditions that you might advocate being added to medical cannabis regimes?

Jason Pirozzolo: Well, TG, I’m sure there’s quite a few. What we’re looking at specifically here at The American Medical Marijuana Physician Association is those conditions that have the most research. You know, that could be Alzheimer’s, other neurodegenerative diseases, anxiety, autoimmune diseases like rheumatoid arthritis. They’ve all shown promise when treated with medical cannabis. However, this is something you’ll hear me say a lot, more research needs to be completed.

TG Branfalt: And, so what advice do you have for, you know, physicians who aren’t recommending now who might be interested in it or those who want to get involved with AMMPA?

Jason Pirozzolo: So, you know, it’s simple. I would say get involved with The American Medical Marijuana Physician Association. There you can not only learn the basics of the endocannabinoid system and get exposed to the available research that exists from medical cannabis, but start to understand the practice management issues. The law and the requirements for physicians to vest … Mitigate their risks. And it’s not only important to get involved and to obtain this kind of education from the standpoint of physicians that want to be active in having their own clinic and recommending medical cannabis. But also those physicians that are simply getting those questions asked of them by their patients.

So, you know, there’s really no reason not to expand your horizon just enough to kind of know what everybody’s talking about, you know? Would CBD help these neurodegenerative processes? How does it do that? How does a doctor … Even if I’m not doing it, how does another doctor that’s going to be recommending cannabis, how do they do that? How is it dosed? You know, things like that can certainly help any physician.

TG Branfalt: And what about for patients? You know, for those who might be considering medical cannabis, but may not have the resources to speak to a physician. Some poorer patients or those who might have a condition that they believe might be helped by medical cannabis. What advice do you have for that population?

Jason Pirozzolo: Well, that’s a very common question. I get asked that a lot. And what I tell patients, you know, I tell them always start with a discussion with your primary care physician. Your primary care physician is ultimately the quarterback of your medical team. And there you can see if you have a condition that would qualify for medical cannabis treatment. Now, if they don’t have a primary care physician or they’re not really able to have that discussion, patients can also reach out to physicians on the web. This is the 21st Century, you know, like Dr. Barry Gordon at venicecare.com. He’s a fantastic physician. He’s worked with a lot of patients all across the state that have had an interest and curiosity in medical cannabis.

And finally, you know, medical marijuana treatment centers themselves, like Surterra and Knox Medical, they all have in-depth resources that are easily accessible on the web. So there’s really no limitations. Whether, you know, whether you are asking about how do poor patients or less well-to-do patients get access to this, it’s very easy. You can do a lot of research on the web and learn about this entire process on the web.

TG Branfalt: So where can people find out more about The American Medical Marijuana Physician Association? And especially the conference that you have coming up?

Jason Pirozzolo: So, The American Medical Marijuana Physician Association is on the web, just like everything else. And it’s ammpa.net. That’s A-M-M-P-A.net. And on the front page the physicians can learn all about our upcoming conference entitled, The NFL And Medical Cannabis. It’s gonna be a great conference. We’ve got Dr. Bennet Omalu, a physician that was featured in the movie Concussion. He was actually played by Will Smith. He’s gonna come and speak to us. We’ve got Congressmen that are actually dealing with this federal legislation right now. Congressman Matt Gaetz is coming to do a keynote. We’ve got, you know, physicians from all over the country flying in that are absolutely the experts in their field. That actually publish all the articles and do the research that we as physicians are reading. And they’re gonna be coming to speak on some very interesting topics.

And again, this is not necessarily for, you know, everyday patients. This is a high-level scientific evidence-based research discussion. That’s what we’re trying to do here. So it should be real exciting. I’m looking forward to it.

TG Branfalt: Well, I really want to take … Thank you for taking the time to chat with me. I know that this sort of took a while. You’re a really busy guy. And, you know, tell ya how much I appreciate what The American Medical Marijuana Physician Association does. I think that it’s very important that we have this now. And, you know, I can’t wait to see the work that comes out of that conference.

Jason Pirozzolo: Yeah. We’re very excited about that. And I appreciate you having me, TG. And you are welcome to come to the conference. We’ll get you right in. And, you know, I’m sure everybody will have something they can learn.

TG Branfalt: Yeah. I will definitely look into that. I want to thank you again for coming on the show. Again, this has been Dr. Jason Pirozzolo of The American Medical Marijuana Physician Association.

You can find more episodes of The Ganjapreneur.com podcast in the podcast section of Ganjapreneur.com and in the Apple iTunes Store. On the Ganjapreneur.com website, you will find the latest cannabis news and cannabis jobs updated daily, along with transcripts of this podcast. You can also download The Ganjapreneur.com app at iTunes and at Google Play. This episode was engineered by Trim Media House. I’ve been your host, TG Branfalt.

At Ganjapreneur, we have heard from dozens of cannabis business owners who have encountered the issue of canna-bias, which is when a mainstream business, whether a landlord, bank, or some other provider of vital business services, refuses to do business with them simply because of their association with cannabis. We have even heard stories of businesses being unable to provide health and life insurance for their employees because the insurance providers were too afraid to work with them. We believe that this fear is totally unreasonable and that cannabis business owners deserve access to the same services and resources that other businesses are afforded. That they should be able to hire consultation to help them follow the letter of the law in their business endeavors. And that they should be able to provide employee benefits without needing to compromise on the quality of coverage they can offer.

This is why we created The Ganjapreneur.con Business Service Directory, a resource for cannabis professionals to find and connect with service providers who are cannabis-friendly and who are actively seeking cannabis industry clients. If you are considering hiring a business consultant, lawyer, accountant, web designer, or any other ancillary service for your business, go to ganjapreneur.com/businesses to browse hundreds of agencies, firms, and organizations who support cannabis legalization and who want to help you grow your business. With so many options to choose from in each service category, you will be able to browse company profiles and do research on multiple companies in advance. So you can find the provider who is the best fit for your particular need.

Our Business Service Directory is intended to be a useful and well-maintained resource. Which is why we individually vet each listing that is listed. If you are business service provider who wants to work with cannabis clients, you may be a good fit for our service directory. Go to ganjapreneur.com/businesses to create your profile and start connecting with cannabis entrepreneurs today.

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Michigan Gubernatorial Candidates Split on Party Lines Over Legalization Issue

7/19/2018

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In Michigan — where, in November, voters will both elect a new governor and decide whether to legalize adult-use cannabis — governor candidates are sharply divided along party lines over the issue of cannabis legalization, according to a Michigan Radio report.

There are four Republicans, three Democrats, and two Libertarians currently in the gubernatorial race; the Republicans have all come out against the legalization initiative, while the Democrat and Libertarian candidates support it.

Republicans

In a meeting between six of the gubernatorial candidates and the Detroit Journalism Cooperative, Lt. Governor Brian Calley focused on cannabis, the substance, instead of prohibition, the civil rights nightmare. “Having another mind-altering substance out there, with the endorsement of the government, I think it a bad thing,” he said.

State Senator Patrick Colbeck (R-Canton) argued that legalization would result in an increased amount of drug test failures and, in turn, a direct drop in employment rates. “When [the] number of job openings goes up, the number of people on government assistance is also going to go up because they can’t find a job because they can’t pass a drug test,” Colbeck said.

Dr. Jim Hines, a Saginaw-based gynecologist, told journalists that he is in favor of medical, but not adult-use, cannabis. “I don’t support recreational marijuana,” he said. However, “When it goes to the ballot, if the voters of the state were to approve it, then I would support it.”

Attorney General Bill Schuette has a history of opposing cannabis law reforms. A spokesperson for the attorney general’s campaign said, “Bill does not personally support legalizing recreational marijuana but as governor he will respect the will of the voters.”

In fact, all GOP candidates, though they might not support the initiative themselves, said they would honor the voters’ wishes if they decide to legalize.

Democrats

Democrat Gretchen Whitmer, a former state senator, told reporters that she will vote in favor of legalization and expects that a majority of voters will do the same. Therefore, she is already considering the initiative’s implementation. “So it stays out of the hands of kids. To ensure the dollars actually go where they’re supposed to go…into our infrastructure and our schools,” she said.

Another Democratic candidate, businessman Shri Thanedar, said he was “fully supportive” of the initiative and called legalization a business opportunity. “I would make sure that big corporations from out-of-state do not come and take advantage of this new law,” he said.

Dr. Abdul El-Sayed called the legalization question an issue of civil rights. “If you are black in this country, you are 3.3 times more likely to be arrested for marijuana possession, despite no higher likelihood of use,” said El-Sayed.

Candidates Thanedar and El-Sayed each told reporters that, if they won, they would use the power of the governor’s office to pardon non-violent drug offenders in prison and, if voters indeed decide to legalize, they would expunge the criminal cannabis records of individuals who were affected by prohibition.

Libertarians

Libertarian candidate Bill Gelineau said he was in favor because legalization would allow law enforcement to focus resources on other crimes.

John Tatar, another Libertarian candidate, reportedly supports the full decriminalization of cannabis.

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Okla. Attorney General: Board of Health’s MMJ Rules Surpass Its Authority

7/19/2018

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The Oklahoma Attorney General Mike Hunter has advised the state’s Board of Health that emergency rules passed last week regarding medical cannabis, including a complete ban on smokable products, is against the will of voters and outside the Board’s authority, according to KOCO 5 report.

The Board’s decision was controversial and resulted in the immediate resignation of the Board’s general counsel and two lawsuits from cannabis advocacy organizations.

“The current rules contain provisions that are inconsistent with the plain language of State Question 788 and the State Board of Health acted outside of its authority when it voted to implement them. Although I didn’t support State Question 788, the people of the state have spoken and I have a legal duty to honor the decision made by the electorate. My advice today is made pursuant to that responsibility as attorney general.” — Attorney General Mike Hunter, via KOCO 5

The general counsel for the Board, attorney Julie Ezell, resigned days after the Board ignored her advice against banning smokable products and requiring a pharmacist at all dispensaries. It was later revealed, however, that Ezell had sent herself fake threats from cannabis activists and submitted them to authorities. Ezell was charged with two felonies and a misdemeanor for falsely reporting the threats and faking evidence.

After Gov. Mary Fallin signed the rules into effect, the Board was swamped with lawsuits from cannabis advocacy organizations, allegations of bureaucratic authoritarianism, and even calls from Republican officials to amend the rules.

“The ‘we know better attitude’ expressed by the OSBH and the shocking approval by our current governor shows contempt for the liberties and the rights we express at the ballot box as citizens. I call on all Republicans to contact your legislators, from either party and ask for a quick resolution to this desecration of the citizens’ voice.” — David McLain, Tulsa County Republican Party chairman, via High Times

In a formal letter clearly notifying the Board that it had acted outside its authority, Attorney General Hunter advised the board to convene immediately to address the rules that exceed the Board’s authority. Hunter stated specifically that the Board’s authority extends only to food preparation and safety standards.

Specific issues with the Board’s rules mentioned in the letter:

  • Limiting allowed locations for dispensaries
  • Preventing dispensaries from sharing locations with other businesses
  • Requiring sealed indoor grows only
  • Requiring licensees to be bonded
  • Setting allowed business operation hours
  • Limiting the THC content of plant material and concentrates

The Board of Health has acknowledged Hunter’s advice and said it intends to convene and amend the rules. Oklahoma state Senate Democrats are calling for legislative intervention as encouraged by the AG’s letter.

“The Senate Democratic Caucus urges Governor Fallin to call the legislature into special session to address issues related to medical marijuana. Today’s letter from Attorney General Mike Hunter to Health Department Interim Director Tom Bates clearly concludes that the Board of Health approved medical marijuana rules that exceed its statutory authority. The leadership of the Oklahoma Legislature will soon be convening a bipartisan working group to make recommendations regarding medical marijuana regulations. The legislature should convene in special session without delay to consider the working group’s recommendations. As elected legislators, it is our constitutional duty to carry out the will of the people.” — State Sen. John Sparks, Senate Democratic Leader, via Oklahoma News 4

The Oklahoma Board of Health has struggled to operate effectively over the past year following a financial mismanagement scandal that came to light in October of 2017. The Board came close to losing over 200 employees due to insufficient funds for payroll but was saved by a $30 million cash infusion from the state government. Nearly the entire leadership of the office resigned or was fired over the winter, including the previous Health Commissioner Terry Cline. His interim replacement, Preston Doerflinger, only lasted a few months before resigning under allegations of domestic violence.

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Arizona Appeals Court Rules MMJ Extracts Illegal

7/19/2018

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The Arizona Court of Appeals has ruled that cannabis extracts are not specifically allowed in the Arizona Medical Marijuana Act (AMMA) and are illegal, according to the Phoenix New Times. The ruling is largely concerned with the disparity between language used in other drug laws in Arizona that makes “hashish” illegal and the AMMA.

Judges on the case have indicated that all extracts are to be defined as hashish.

“AMMA is silent as to hashish. Prior understanding of the pertinent words strongly indicates that AMMA in no way immunizes the possession or use of hashish. That AMMA immunizes medical use of a mixture or preparation of the marijuana plant does not immunize hashish.” — Judge Jon W. Thompson, writing the court’s majority opinion

The judges’ 2-1 ruling was made regarding the conviction of Rodney Jones, a card-carrying medical cannabis patient arrested in 2013 for possession of a small jar of hashish. Jones was sentenced to two and a half years in jail, of which he’s already served 366 days. The latest ruling confirms Jones’ conviction, which has been a roller coaster of differing legal opinions.

Dispensaries in Arizona are unlikely to pull “hashish” derived products from shelves until the Arizona Supreme Court rules on the issue. The latest ruling has many dispensary owners nervous, as even CBD-only extracts are technically now illegal. Overlapping layers of legal decisions in wildly different directions in the state seem to be the issue at hand in Arizona.

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A man wearing handcuffs stands next to a cannabis plant.

U.S. Cannabis Seizures Falling; Data Suggests Shrinking Illicit Market

7/18/2018

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GreenWave Advisors has analyzed data from the DEA and Homeland Security regarding cannabis plant seizures over the last several years and determined that the illicit market for cannabis in the U.S. is shrinking, according to a High Times report.

Cannabis consultant Dustin Moore said the data could indicate a variety of causes, including a shift from imported illegal cannabis to cannabis grown in legal states — but perhaps without a license to do so.

“While the DEA focuses mostly on illegal market players, I’d say in California the unlicensed players represent the most predominant section of the market right now. […] The hardest thing to do is to try and develop causality of why the illegal markets seem to be shrinking. Is it because there are now roughly 30 states with legal cannabis? Is it a function of the DEA and homeland security not prioritizing cannabis as much as they once did, given the fact that the Rohrabacher–Farr amendment gives them less latitude than what they once had?” —Dustin Moore, in the report

Many consultants agree, however, that such a large data set certainly indicates a changing cannabis playing field in states with legalization. ArcView Group and BDS Analytics published a separate report that encourages GreenWave’s interpretation of the data.

“The successful reduction of the illicit markets in Colorado, Washington, and Oregon provides evidence that legalization works, and continues to support the assertion that ‘more legalization is better.’” — Excerpt, “The State of Legal Marijuana Markets,” via High Times

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Florida to Issue Four More MMJ Cultivation Licenses

7/18/2018

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The Florida Department of Health announced last week it would be licensing four more medical cannabis cultivators now that the program has surpassed 100,000 patients, the News Service of Florida reports. The addition of the new licenses will bring the total number of cannabis cultivators in Florida up to 14, the tenth license having been issued just last week to a Miami-based grower after a contentious legal scuffle.

Health officials laid out their requirements for the next four licensees, which they plan to select from as many as 400 applicants.

Attorney John Lockwood, who represents multiple cannabis operators in the state, applauded the Health Department’s move.

“It takes these four licenses that they have to issue by statute and removes them from the litigious issues. These are just four open, competitive licenses. So in my opinion this is a very, very smart move by the department to get these licenses to market as quickly as possible. This is the way it should be done.” — John Lockwood, in the report

Florida’s cannabis licensing process has undergone several iterations, as the state launched its initial cannabis program in 2014 as a strictly low-THC system with just five licensees. Voters passed a constitutional amendment in 2016, however, that established a more comprehensive medical cannabis program and called for the licensing of additional operators.

“The Florida Department of Health is committed to ensuring qualified patients have safe, reliable access to low-THC cannabis and medical marijuana. In an effort to continue to expand availability of this treatment, the department will accept applications for registration as a medical marijuana treatment center through a new rule. This new rule addresses the Pigford class license and the four additional licenses available upon reaching 100,000 patients, as outlined by the Florida Legislature in 2017.” — Florida health officials, in a statement, via the News Service of Florida

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Study Shows Higher Rates of Mental Illness In States With MMJ

7/18/2018

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A study by RTI International shows a link between states that have permissive medical cannabis laws and higher rates of mental illness, The Herald Sun reports. The study used data from 630,000 people collected between 2008 and 2015. The study did not examine mental health rates in these same states before passing medical cannabis laws; for this reason, the study cannot determine if medical cannabis is the cause of these higher rates of mental illness or only correlated.

The RTI study concluded that states with permissive medical cannabis laws, meaning medical cannabis laws that allow cannabis consumption to treat non-life-threatening conditions like mild anxiety or sleep issues, had mental illness rates 2 percent higher than the national average and states with restrictive medical cannabis laws, which only allow consumption for life-threatening conditions like cancer or seizures.

Several studies over the previous 20 years have shown links between cannabis consumption and mental illness. However, their relationship is often difficult to untangle. Paul Armentano, deputy director of The National Organization for the Reform of Marijuana Laws (NORML), said the relationship between brain disorders and cannabis isn’t clear.

“The relationship between marijuana use and mental illness is not well understood and it appears to be fairly complicated. It could be that people with mental illness are self-medicating. … It’s also possible that in some cases marijuana may exacerbate these latent conditions.” — Paul Armentano, Deptuy Director for NORML, in the report

A research review published in Current Psychiatry Reports in 2016 cautions that problems with behavior are often the cause of cannabis consumption and not the other way around.

“It has been argued that even if we are uncertain that cannabis actually causes psychosis, it is better to err on the side of caution and warn cannabis users, psychiatric patients and the general public about this potential danger of cannabis use… However, those adolescents most at risk for beginning cannabis use are already suspicious about the official warning messages when it is perfectly clear that cannabis use is not approved by the general society. If we wish scientists to be taken seriously when we do discover real and substantial dangers, then we believe it would be better to avoid behaving like ‘the boy who cried wolf.’” — Current Psychiatry Reports, via The Herald Sun

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Outdoor cannabis plants located at a CBD farm in Oregon.

Oregon Considering New Regulations for Growers to Combat Illicit Market

7/18/2018

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The Oregon Liquor Control Commission (OLCC), the regulatory body also in charge of cannabis, plans to roll out new reporting regulations to monitor harvests and stifle supply to the illicit cannabis market, High Times reports. Growers are concerned the regulations will make it difficult to harvest the unpredictable cannabis plant and are pushing back against the planned regulations.

The new regulations would require growers to report on anticipated harvest, dry, and cure dates, as well as when those actions finally occur. The OLCC said it receives the same data from agricultural food processors. Growers have argued that cannabis harvests are unpredictable and, unlike traditional agricultural harvests, difficult to anticipate.

The OLCC has not released numbers or data showing how much cannabis is being diverted to the unregulated market. However, the OLCC has said the illicit market cannabis is coming from somewhere and they want to ensure it’s not licensed growers. Oregon strives to use these reporting regulations to better understand the supply chain and where cannabis is leaking to the illicit market.

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California to Block Hemp-Derived CBD From All Food Products

7/17/2018

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The California Department of Public Health’s Food and Drug Branch (CDPH-FDB) updated an FAQ last week to address food products containing hemp-derived CBD and — according to a Canna Law Blog report — it could completely upend the state’s well-established and diverse CBD product marketplace.

“Although California currently allows the manufacturing and sales of cannabis products (including edibles), the use of industrial hemp as the source of CBD to be added to food products is prohibited. Until the FDA rules that industrial hemp-derived CBD oil and CBD products can be used as a food or California makes a determination that they are safe to use for human and animal consumption, CBD products are not an approved food, food ingredient, food additive, or dietary supplement.” — The updated FAQ, via the Food and Drug Branch of California’s Dept. of Public Health

California law identifies “food” as either:

A) “Any article used or intended for use for food, drink, confection, condiment, or chewing gum by man or other animal,” or
B) “Any article used or intended for use as a component of any article designated in subdivision (A).”

In making this announcement, the CDPH-FDB is choosing to coincide with the most literal interpretation of the FDA’s stance on hemp-derived CBD. Officially, the FDA maintains that CBD products are a Schedule 1 substance and have warned companies against listing or suggesting any medical benefits associated with the products.

The FDA, for its part, recently approved GW Pharmaceuticals’ cannabis-based medicine Epidiolex, but only as treatment for two very specific, rare forms of epilepsy — and the medicine was created using CBD-rich cannabis plants, not CBD sourced from hemp.

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Washington Cannabis Regulators Issue Emergency License Suspension

7/17/2018

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The Washington State Liquor and Cannabis Board (WSLCB) issued its second emergency license suspension of 2018 last week. Acting on a complaint, the WSLCB inspected Tacoma Refined Cannabinoids and found violations that prompted the agency to issue a 180-day license suspension.

During the inspection, officers discovered plants, clones, and finished product not tagged with traceability markers, essentially making those items invisible to regulators. According to the WSLCB, officers seized 2,569 cannabis plants, 1,215 clones, 376 lbs of flower in refrigerated coolers, 97 lbs of bulk flower and over 3,000 half-gram pre-rolls. In addition to these violations, evidence of diversion outside the regulated market was uncovered.

All wet cannabis material will be destroyed immediately and nonperishable material will be destroyed upon revocation of the license at the end of the 180 days.

“Traceability is a core component of Washington’s system and essential for licensee compliance. If our licensees fail to track their product they put their license in jeopardy.” — Justin Nordhorn, Chief of Enforcement for the WSLCB

This is the latest traceability issue for Washington, where retailers have been reporting malfunctions with the statewide traceability database, provided by MJ Freeway, since it was adopted on November 1, 2017. Since then, multiple deadlines have been extended and a third party was brought in to assess the system, but problems have reportedly persisted.

Despite the ongoing issues, the WSLCB announced last week that MJ Freeway’s contract has been extended through January 10, 2019, with additional incentives to push towards project completion.

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Thailand Begins Process of Legalizing MMJ

7/17/2018

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Thailand’s government is currently debating a bill that would legalize medical cannabis, according to a Bloomberg report. Thailand, like many Southeast Asian countries, currently has extremely strict drug trafficking laws. However, as recently as the 1980s, Thailand was one of the world’s foremost cannabis exporters.

Thailand’s government is a military junta, or dictatorship, where civilian political power answers to the military government. In May, the junta gave the go-ahead for medical cannabis research on humans. Thailand’s National Legislative Assembly drafted a bill and is currently debating it. The legislature is expected to give final approval for legalization and enter the bill into law within the next nine months.

Thailand was once a cannabis capital of the world. American G.I.s during the Vietnam War would often take time off in Thailand and partake in cannabis. This influence was one of the many drivers of cannabis culture in the U.S. after the war. After the 1980s, however, Thailand’s military government took a strict stance on drug trafficking and the industry died off. In a resurrection of that history, Thailand hopes to be the first country in Asia to legalize and develop a market for medical cannabis.

“It will be important for new market entrants like Thailand to get established quickly, however, or existing players like Canada and the U.S. will use their historical advantage to capture and dominate the market sector.” — Steve Rolles, Senior Policy Analyst for the UK Transform Drug Policy Foundation, via Bloomberg

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Legal Cannabis-User’s Widow Denied Workers’ Comp. Death Benefits

7/17/2018

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A deceased Colorado electrician’s family is being denied half their workers’ comp. death benefit because of THC found in the victim’s system, according to a The Denver Channel report. Electrician Adam Lee died while on the job at Loveland Ski Area. An autopsy revealed the presence of high levels of THC in his body but current tests cannot tell whether or not he was intoxicated at the time of his death.

Erika Lee, Adam Lee’s widow, has been struggling to make ends meet since the accident.

“I’m scared, and I have no idea how we are going to make it. We don’t know if we will get any money, so I’m just looking now at how to survive. I am frustrated with the system that is saying because he smoked a legal substance, we are going to take away your benefits from you and your kids.” — Erika Lee, in the report

If an injured or deceased person tests positive for cannabis or another controlled substance, Colorado state law allows workers’ comp. companies to cut benefits by 50 percent. However, tests will show cannabis in a person’s system for many days or even weeks, even if the person is not currently intoxicated.

Colorado Attorney Brian Vicente, who played a notable role in the campaign to legalize cannabis earlier this decade, said this is a message to Colorado cannabis consumers.

“We voters spoke loudly and said marijuana should not be illegal for adults. Yet we still have some parts of the Colorado revised statutes that appear to penalize people who are using this substance.” — Brian Vicente, via The Denver Channel

Administrative Law Judge John Sandberg, who holds a seat with Colorado’s Department of Labor, said this will need to be a problem solved by the Colorado legislature.

“As it stands now, with a positive test result, an employer has the right to reduce those benefits. The issue that you’re raising […] I think is a good social issue. It’s one that probably needs to be brought to the general assembly in terms of how this impacts workers.” — Judge John Sandberg, in an interview

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IndicaOnline Dispensary Point of Sale Integrates with Metrc Compliance Software

7/17/2018

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Managing cannabis compliance has been a complicated process for many marijuana retailers in medical and recreational markets. While many of the legal states in the U.S. have very similar regulations, each state has their own compliance nuances. IndicaOnline has recently developed comprehensive compliance tools within their dispensary point of sale software that simplifies sales and inventory reporting for California cannabis retailers.

Evolving with the ever-changing cannabis industry is a must for marijuana dispensaries who have so much invested in their business. Human error can easily jeopardize a retailer’s business license, especially if they are operating using an inferior POS system. Using automated tools to prevent your marijuana business from minor mistakes will provide peace of mind to the owners, managers, and staff members.

IndicaOnline has successfully completed full integration with California’s track-and-trace service provider, Franwell’s Metrc. Cannabis dispensaries will now be able to send real-time automated sales and inventory reports without logging into Metrc. Dispensary staff only need to login to Metrc to accept incoming inventory manifests which will then automatically appear in IndicaOnline. Once they appear in your POS system, you can then accept them into your inventory and perform additional actions as needed.

Cannabis retailers can complete most of the inventory actions within IndicaOnline’s customized interface. Dispensary managers can adjust package quantities, split packages, merge packages, and close packages all from the point-of-sale software. Most of the time discrepancies between Metrc and IndicaOnline can be resolved by re-syncing inventory, but if any issues arise, customer support is more than willing to help.

After a California cannabis retailer receives an annual business license and completes the Metrc online training, a Metrc API key is provided allowing IndicaOnline to sync with their software. This will allow the two platforms to communicate with each other and initiate automated sales reports for dispensaries. IndicaOnline sends important traceability information, such as transactions and related package IDs, quantity/inventory changes, price of product, split/merged packages, and closed packages.

It’s imperative for dispensaries who have applied for an annual license to prepare their inventory for integration by scheduling a product migration. This process is time-consuming and could take several days to complete depending on the amount of inventory. IndicaOnline recommends retail owners schedule their product migration once they’ve submitted an annual license application or been issued their Metrc login information.

For more information, visit the IndicaOnline website or email Compliance@IndicaOnline.com.

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Proposal Released for California’s Permanent Cannabis Regulations

7/16/2018

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California’s Bureau of Cannabis Control (BCC) released a proposal on Friday, July 13 outlining permanent cannabis industry regulations for the state. The 136-page document details every proposed rule for the burgeoning cannabis industry, but the BCC also released a fact sheet summary of industry changes under the proposed regulations.

Industry-wide changes

The proposal’s industry-wide changes include updates to the application process, the licensing process, advertising rules, security measures, and policies for product returns/destruction. Below are listed just some of the changes.

Applications: Temporary licenses will no longer be available after Dec. 31, 2018. Also, the rules outline additional hoops for applicants to jump through, including securing a labor peace agreement and clarification that a company will not “generate significant adverse environmental impact.” Also, new rules will allow for electronic signatures on all documents submitted to the BCC, except for notarized statements.

Licensing: Rule changes here describe which business modifications by a licensee the BCC must be made aware of (such as standard operating procedures, labor peace agreements, the transferring of ownership, etc.). Also clarifies that each licensed premise is required to list a distinct street address, that extra inventory stored at a licensed premise must be locked up in a secure area, that “the bureau may inspect a licensee’s records without prior notice and the licensee must be able to produce records immediately upon request at the licensed premises,” and more.

Advertising: Advertising restrictions have been expanded to ban product giveaways and any marketing material that could be interpreted as appealing to children.

Security: “Limited access area” rules have been extended to all licensees in the industry, not just retailers.

Product returns: Under the proposed changes, cannabis waste cannot be transferred, donated, sold, or given away.

License-specific changes

There are also changes affecting specifically distributors, retailers, testing labs, cannabis-themed events, and cannabis microbusinesses. Some of the more important rules are specified below.

Distributors: Clarifies that distributors cannot carry live plants/clones or package pre-rolls. Also, cannabis batches could only be transported to producers or retailers once it has passed testing and the new rules would require “licensed distributors [to] have a completed sales invoice or receipt before transporting cannabis goods.”

Retailers: Exit packaging must be opaque, resealable, and child-resistant. Also, the proposal would allow a retailer with multiple retailer licenses to transfer goods from one licensed retail premise to another — but a licensed distributor must conduct the transport of the cannabis goods.

Testing labs: Many changes here, including — but not limited to — a new set of rules for the transportation of cannabis samples and modifications to the data package requirement to “require a data package for every sample instead of every batch.” Also, under the proposal, a failed batch could only be retested once it has undergone remediation.

Events: New rules for cannabis events will require organizers to “provide a more detailed premises diagram indicating where each licensed retailer will be located, where cannabis consumption will occur, and where cannabis sales will occur.” The proposal also “limits licensed retailers to selling cannabis goods in their designated area.”

Microbusinesses: Mostly clarifications that industry-wide regulations affect microbusiness applicants, as well, including environmental impacts.

Cannabis became legal for adult use in California on January 1; the latest set of emergency rules took effect on July 1.

California is the world’s largest legal adult-use cannabis marketplace.

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New Jersey MMJ Program to Double In Size; Supply Shortages Ongoing

7/16/2018

by

New Jersey Gov. Phil Murphy, a Democrat, called for a doubling of the state’s medical cannabis producers today, from six to 12, according to an NJ.com report. New Jersey’s medical cannabis program developed supply issues earlier this year after a previous expansion added several qualifying conditions. The governor made the call after the New Jersey State Legislature failed in June to pass a bill expanding the program.

The New Jersey Department of Health said the program is adding 500 patients each week. The program has more than 25,000 participants as of now, almost double the number at the end of 2017. The huge rate of expansion has resulted in long lines and product shortages at dispensaries. The executive director of New Jersey’s Cannabis Industry Association, Hugh O’Beirne, said even doubling the number of providers won’t be enough supply for very long.

“As supply limitations impact patients’ accessibility to medicine, then the body that’s empowered to act on the patient’s behalf should act. If that person is the governor, then the governor should act. We’ve got people suffering. We’ve got children suffering for crying out loud.” — Hugh O’Beirne, via NJ.com

Medical cannabis producers in New Jersey are vertically integrated — the companies grow, process, and sell cannabis. The six new producers will be spread evenly through the state.

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