Oregon Cannabis Growers Must Now Notify Regulators of Each Harvest

8/31/2018

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Oregon cannabis regulators have established a new rule requiring licensed cultivators to notify the state each time they harvest a cannabis crop, The Associated Press reports.

Oregon – whose marketplace has been plagued with overproduction due to the state’s prime growing environment and a lack of licensing cap on growers – is the first state to take this step in cannabis enforcement.

Mark Pettinger, spokesperson for the Oregon Liquor Control Commission, likened the new rule to an “audit,” saying that officials will come on the day of harvest to make sure that the plant totals being entered into the cannabis tracking database match the actual, on-site plant totals.

The new rule was originally going to require three day’s notice before a harvest, but cultivators pushed back on this and it was changed to 9:00 a.m. on the day of harvest.

Pettinger said the state had 23 inspectors on staff, which would not be enough to physically inspect each harvest but that the possibility of inspection should encourage good behavior.

“A lot of growers are far-flung, but we have a concentration of inspectors in southern Oregon, and it’s the southern Oregon outdoor growing activity that has anecdotally and historically been sort of a crucible of where a lot of diversion and illegal activity takes place.” – Mark Pettinger, spokesperson for the Oregon Liquor Control Commission, via the AP

Licensed growers, however, say the rule unfairly targets their segment of the marketplace – specifically outdoor growers, as the rule does not affect indoor growers; outdoor growers get just one harvest each year, while indoor growers are slotted three.

“Which target are you going to go after if you’re shooting? You’re going to go after your easy target. I don’t think there’s a single instance where it’s been demonstrated that somebody is attempting to divert product.” – Pete Gendron, President of the Oregon SunGrowers Guild

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Headset Launches California

Headset Launches Industry Data Analytics Platform for CA

8/30/2018

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Headset is proud to announce the latest launch of its market intelligence product Headset Insights, for California’s legal cannabis industry, expanding its cannabis intelligence coverage to the largest cannabis economy in the US.

Headset Insights is a tool for businesses that delivers market trends based on aggregated sales data collected from retailers and dispensaries in real-time, so operators can better understand the competitive landscape, know their brands’ position in the market, and even identify opportunities for future product development.

As the birthplace of cannabis legalization initiatives in 1996, the forecasted size of the California market is expected to swell to $5.6 billion by 2020, marking it the largest in the United States, with all four of its major metropolitan markets currently online with legal cannabis production, testing and retail outlets.

The number of retail licenses grew by 113% during the first six months of 2018, proving that there will be no shortage of outlets available to the adult use consumer. As of July 1, stringent new regulations on testing, packaging, and labeling have gone into effect in California, securing the positions of the industry’s most serious players. There has never been more need for big data products and services.

“Since we launched our Insights platform last year in Washington, Colorado and Nevada, retailers, manufacturers and brands throughout the state of California have been asking us when we would be expanding to their state to provide them with this valuable tool,” says Cy Scott, founder and CEO of Headset. “We are delighted to be able to now offer California market data to our customers helping companies get a better sense of category, segment, brand and product trends as the California cannabis industry continues to mature and cement itself as the largest market in the world. Although the market is quite new, our data already shows that California is behaving in a significantly different way than other recreational markets.”

The cannabis industry is moving rapidly, and operators are looking to use data analytics to identify the fastest-moving product segments and consumer demographics before their competitors do.

Unlike other software tools, Headset collects this data in real time, directly from the industry’s top POS systems, and reports back to operators to guide their most crucial business decisions.

Cannabis operators and other industry players can run analytics on cannabis products at the SKU, brand and category level, gaining key insights into where they rank within the overall market. Headset’s market data illustrates how manufacturers stack up next to the competition and is invaluable for brand positioning when approaching new or existing clients.

Real-time analytics are important, as the state regulations continue to change, and new licenses continue to roll out, creating even more competition. With Headset Insights real-time data, operators can find out what is happening in the market right away and make timely business decisions.

For information about the California cannabis market, read Headset’s Early Market Trends: California 2018 industry report.

To track the best selling brands, visit Headset Best Seller List, updated daily.

For more information on Headset and its services in California, visit Headset.io.

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Secret Trump Committee Plans to Undermine Legal Cannabis

8/30/2018

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The Trump Administration has secretly established a committee of federal agencies to investigate the most effective anti-cannabis messaging and to undermine recent trends towards cannabis legalization, according to a BuzzFeed News report.

The committee is called the Marijuana Policy Coordination Committee and is comprised of 14 federal agencies plus the Drug Enforcement Administration; the group will reportedly be used to brief President Trump on “marijuana threats.”

During a July 27 meeting between White House officials and the departments of State, Justice, Homeland Security, and Health and Human Services, the committee ironically proclaimed that “the prevailing marijuana narrative in the U.S. is partial, one-sided, and inaccurate.” (The irony stems from the history of disinformation & negative propaganda that has been spread about cannabis.) White House officials tasked each agency with submitting “data demonstrating the most significant negative trends” related to legalization. Notably, there was zero mention of discussing or even considering any of the positive arguments for cannabis reform.

“Staff believe that if the administration is to turn the tide on increasing marijuana use there is an urgent need to message the facts about the negative impacts of marijuana use, production, and trafficking on national health, safety, and security.” — Excerpt of summary from July 27 White House meeting obtained by BuzzFeed News

The White House wouldn’t comment on the committee’s policy-making process, but spokespeople from multiple agencies wouldn’t deny the committee’s existence.

“The Trump Administration’s policy coordination process is an internal, deliberative process to craft the President’s policies on a number of important issues facing the American people, and ensure consistency with the President’s agenda.” — Deputy White House Press Secretary Lindsay Walters, via BuzzFeed News

Unsurprisingly, cannabis advocates have condemned the committee.

“To see this White House — that cannot even coordinate an adequate response to the overdose crisis – waste so much time on discussions on how to push anti-marijuana legalization propaganda is mind-boggling, and underscores this Administration’s ineptitude on drug policy.” — Michael Collins, Deputy Director for the Drug Policy Alliance’s Office of National Affairs, via The Hill

On the 2016 presidential campaign trail, then-candidate Trump said that, while he was not in favor of cannabis legalization, he would, if elected, honor states’ rights to determine their own path on the issue. Earlier this year, President Trump appeared to double down on that stance when he reached an agreement with Colorado Sen. Cory Gardener (R) to support legislation protecting legalized states from federal enforcement.

In February 2017, however, there was talk by then-Press Secretary Sean Spicer about “greater enforcement” of cannabis prohibition in legalized states. Furthermore, Attorney General Jeff Sessions — who was one of the President Trump’s earliest appointments — rescinded what few federal protections there were for the cannabis industry in January and has requested that Congress remove restrictions on the Justice Department that block it from actively pursuing state-legal cannabis businesses.

Given that public support for cannabis legalization is at an all-time high, it seems doubtful that a committee will be able to do much to prevent the rapid growth of industries in legalized states. The fact that the committee exists, however, suggests that the Trump Administration is unlikely to engage in discussions of federal cannabis reform any time in the near future.

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Michigan Regulators Consider MMJ Delivery

8/30/2018

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Medical cannabis patients in Michigan could soon have access to home delivery services, according to an Associated Press report. The change was proposed this week by medical cannabis regulators in the state; the proposal would allow both online ordering and home delivery for medical cannabis products.

There will be a public hearing in September where citizens can weigh in on the potential rule change.

Andrew Brisbo, director of the Bureau of Medical Marihuana Regulation, said that regulators hope the change will improve access for people who live far away from any licensed retailers. Additionally, elderly patients or patients who are too ill to travel would certainly benefit from home delivery services.

Rick Thompson, editor and publisher of the Michigan Cannabis Industries Report, said that the change would be “crucial” for some patients.

Michigan voted to legalize medical cannabis for specific, chronic conditions in 2008. Earlier this year, the Department of Licensing and Regulatory Affairs added 11 new ailments to the list of qualifying conditions — in a boon for the industry, chronic pain, the most frequently cited condition for medical cannabis access in the world, was included on that list.

Later this year, voters will decide whether or not to legalize adult-use cannabis throughout the state.

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Medical

Connecticut Adds New Qualifying Conditions to MMJ Program

8/30/2018

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On Tuesday, Connecticut’s Regulations Review Committee added eight new conditions to the list of qualifying conditions for the state’s medical cannabis program, according to a Connecticut Mirror report. All eight conditions are valid diagnoses for adults and two of the conditions are approved for child patients as well.

Adult-only qualifying conditions:

  • Muscle Spasticity or neuropathic pain with fibromyalgia
  • Severe rheumatoid arthritis
  • Post-herpetic neuralgia, which is a complication of shingles
  • Hydrocephalus (a buildup of fluid in the brain) with intractable headache
  • Intractable headache syndromes
  • Neuropathic facial pain

For adults and those under 18:

  • Muscular dystrophy
  • Osteogenesis imperfecta, also called brittle bone disease

With the added conditions, Connecticut’s medical cannabis program now has a total of 30 conditions approved for adults and eight for those under 18.

“Now that these regulations have been accepted, more patients with severe medical conditions will have access to medical marijuana as a treatment option. … I continue to be proud of the careful way that our program has expanded, and its commitment to a true medical model.” –Michelle H. Seagull, CT Consumer Protection Commissioner, via CT Mirror

The conditions, approved by the legislature, now await posting by the Secretary of State’s office. They’re expected to be finalized within a week.

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Italian Wheat Field

Italian Farmers Solve National Wheat Crisis With Hemp

8/30/2018

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Low wheat prices, cheap international imports, and eroded soil have created a crisis for farmers in Italy. Some are turning to hemp to save their farms, reports The Guardian. Hemp has been legal for farmers to grow in Italy since 2016. Starting with pilot programs in 2013 cultivating 400 hectares, hemp cultivation in Italy has reached 4,000 hectares as of this year.

In Italy, wheat profits the average farmer 250 euros per hectare. Hemp, however, profits over 2500 euros per hectare and not only is it more profitable, growing hemp is also a boon to Italy’s desiccated soil, eroded after years of growing only durum wheat.

“Years of monocultural wheat cultivation are the problem. It has caused soil erosion, and is at risk of soon making the land infertile. … The cultivation of hemp is a valid opportunity for a diversified farming which can be a good solution for the rebirth of abandoned and less fertile land. The ancient Romans taught us that diversifying crops can help make the land more fertile. I do not know if this will lead to the growth of the agricultural sector, certainly for Italy is a return to the origins.” –Dario Giambalvo, Professor of Agricultural Sciences, University of Palermo, via The Guardian

Until the 1940s, Italy was the largest producer of hemp in the world, cultivating over 100,000 hectares. The invention of synthetic fibers caused a collapse of the world hemp market, however. Following the advent of nylon and other fibers, international drug prohibition further eliminated hemp as a viable crop. Italy signed the Single Convention of Narcotic Drugs — the international treaty that unifies laws on drug prohibition — in 1961.

Many farmers and other Italians hope that, as hemp returns, it will lead to the reduced prohibition of psychoactive cannabis strains and other pharmaceutical advances.

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Whole-Plant CBD Extract Fights Epilepsy Better Than Refined CBD, Study Says

8/29/2018

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In a recent review of studies by Brazilian researchers, it was found that epilepsy patients treated with CBD-rich whole-plant hemp extract saw significantly better effects than epilepsy patients treated solely with refined CBD, according to a Marijuana Moment report. Some sources currently call this whole-plant effect the “Entourage Effect” and it has been anecdotally reported on and speculated about for years.

The review found that CBD is an effective treatment for epileptic seizures. Two-thirds of patients in the 11-study review had fewer seizures with CBD treatment. The interesting part is that only 36 percent of patients treated with refined CBD saw improvements, while 71 percent of those treated with whole-plant hemp extracts saw a reduction in seizures. That difference is significant.

When using purified, isolated CBD as a treatment, not only are other major cannabinoids like Cannabinol (CBN) or Cannabigerol (CBG) missing, but also terpenes and other plant chemicals that are yet to be fully understood.

The only thing that’s certain after years of research is that whole-plant cannabis extracts are more effective as medicine than any single ingredient.

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Study: One In Seven U.S. Adults Used Cannabis In 2017

8/29/2018

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A study published in the Annals of Internal Medicine showed that 14.6% of U.S. adults consumed cannabis in 2017, Reuters reports. Specifically in states with adult-use or medical legalization, one in five people tried cannabis. The most common method of consumption was smoking by a slim margin, at 55% of those surveyed.

Other noteworthy data reported in the study was that 66% of people used cannabis for pain management, which is interesting, considering a study published recently in the Lancet, often cited by opponents of cannabis as a substitute for opioids, that found cannabis ineffective for pain management. Obviously, more research needs to be done.

Also noteworthy is the study’s finding that cannabis users in states with adult-use legalization were more likely to vaporize cannabis or consume it in edible form than to smoke the plant. This market trend among cannabis users has been observed in many legal markets and is further reinforced by this study.

The study authors concluded that Americans’ view of cannabis is more favorable than previous studies have shown. This may reinforce the perception common among cannabis advocates and others in the know that we’re in a period of rapidly-changing opinions about cannabis. The authors of the study did have some concerns about the rapidly changing cannabis environment, however.

“There are increasingly novel forms of marijuana available and the risks of these products to health are unknown. THC (the psychoactive component) is very high in some forms of marijuana, the concentrates, for example. We don’t understand the impact of products with high THC.” — Dr. Salomeh Keyhani of the University of California, San Francisco, study co-author, via Reuters

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Nevada Collects $69.8 Million in Taxes for First Year of Adult-Use Sales

8/29/2018

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The numbers are in for Nevada’s first fiscal year of adult-use cannabis sales: marijuana tax collections totaled $69.8 million, according to a news release from Nevada’s Department of Taxation. The state earned about 140% more cannabis tax revenue than was predicted.

Adult-use sales totaled $424.9 million for the year; $42.5 million was collected through a 10 percent retail tax and $27.3 million was collected via a 15 percent wholesale tax. According to the release — and in keeping with the trend that these markets build up over time — the final four months of the fiscal year were the most successful.

The wholesale tax dollars, along with the program’s application and licensing fees, will go primarily to Nevada’s Distributive School Account to benefit education throughout the state. The retail tax dollars will be deposited into the Rainy Day Fund.

“Nevada’s first year with a legal adult-use market has not only exceeded revenue expectations, but proven to be a largely successful one from a regulatory standpoint. We have not experienced any major hiccups or compliance issues, and our enforcement staff has worked diligently to make sure these businesses understand and comply with the laws and regulations that govern them. As we move into fiscal year 2019, we expect to see continued growth in the industry by way of additional businesses opening up, and we expect revenues to continue to be strong.” — Bill Anderson, Executive Director of the Nevada Department of Taxation, in a statement

After Nevada voters approved the tax-and-regulate cannabis marketplace in 2016, lawmakers rushed to establish the marketplace. Adult-use sales launched in Nevada in July 2017.

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Scientists Note Differences Between Combined vs. Isolated Uses of Cannabis and Nicotine

8/29/2018

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A recent study on the isolated versus combined uses of cannabis and nicotine has found that there are indeed different effects on the brain network when users consume just cannabis, just tobacco, or a mixture of the two. The study was performed by researchers at the Center for BrainHealth at the University of Texas at Dallas.

The study used MRI scans to evaluate resting state functions in different regions of the brain among the four groups of participants: there were 28 nicotine users, 52 cannabis users, 26 nicotine and cannabis users, and 30 non-users as a control group.

Interestingly, the study authors note, “not only were the effects in these three categories different, but also … the group using both nicotine and cannabis more closely resembled the control (non-user) group in brain connectivity.” The isolated cannabis and isolated nicotine users demonstrated equally less connectivity.

“Most of the literature to date has focused on associations of isolated cannabis and nicotine use, even though concurrent cannabis and nicotine use is more prevalent in society than cannabis use alone. Our findings confirm the limitations of existing research.” — Dr. Francesca M. Filbey, the study’s lead author and the Bert Moore Chair in BrainHealth at UT Dallas

Fibley said the study’s results likely resulted from the opposing effects that nicotine and cannabis have on the brain. The difference in the brain effects of concurrent users vs. isolated users also suggests that further research into the functional connectivity of these substances is necessary.

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California School

California Legislature Passes Bill Allowing MMJ In Schools

8/28/2018

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On Monday, the California state Assembly passed a bill allowing child patients to consume medical cannabis on school grounds, CBS Sacramento reports.

Children who need medical cannabis in California have had access to it for decades; however, parents have been forced to take their children out of school or meet them off campus to provide the medicine. The new bill solves that issue for schools that opt-in. It does not, however, force any school district into allowing medical cannabis.

Medical cannabis products would only be allowed in capsule or liquid form and only for students with a doctor’s prescription.

The bill, sponsored and carried by state Sen. Jerry Hill (D-San Francisco), was inspired by a teenager in South San Francisco who would have over 50 seizures per day without access to his medicine. Other children have also had issues accessing their medical cannabis while in school.

The bill now awaits Gov. Jerry Brown’s signature. The California state legislature closes for the session on Friday.

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Cannabis Approved as Opioid Exit Path in Illinois

8/28/2018

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A measure written to limit barriers for medical cannabis and provide easier access for patients currently taking prescription opioids will become law in Illinois today, according to a Chicago Tribune report. Gov. Bruce Rauner will sign the bill into law at the Chicago Recovery Alliance, a nonprofit that provides clean needles, anti-narcotic Naloxone, and other services in the fight against heroin and opioids.

The measure focuses on the fight against opioid deaths — there were 2,000 in Illinois alone in 2016 — but it will also remove hurdles for accessing medical cannabis for anyone with a qualifying condition.

Previous restrictions requiring all prospective medical cannabis patients in Illinois were required to be fingerprinted and undergo a background check will be removed. Those patients approved by a doctor but who are awaiting state review of their application will also be given an immediate, temporary prescription for medical cannabis.

The measure goes further for those with a medical cannabis prescription provided in lieu of a prescription for opiates; such patients will not need to apply to the health department and can access medical cannabis immediately, though their renewable prescription will be limited to just 90 days.

“It’s an exit ramp for opioid use.” — State Sen. Don Harmon (D-Oak Park), sponsor of the bill, via The Chicago Tribune

Opponents of the medical cannabis expansions claim that cannabis does not help with pain nor reduce opioid abuse. Director of Research for the Chicago Recovery Alliance Suzanne Carlberg-Racich, however, supports the new law.

“This is a great step in the right direction. I’m pleased to see an alternative for pain management that doesn’t have any potential for a fatal overdose.” — Suzanne Carlberg-Racich, director of research for the Chicago Recovery Alliance and assistant professor of public health at DePaul University, in the report

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A mature cannabis cola inside of a licensed Washington cultivation center.

Study: Nearly Half of Cannabis Consumers Can’t Name Their Favorite Strain

8/28/2018

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A recent report on cannabis consumer trends by High Yield Insights has found that although a majority (64 percent) of cannabis consumers say that strain types are important to their purchasing decisions, nearly half (45 percent) either didn’t have or couldn’t name their favorite strain.

Popular strains like GG4 and OG Kush surfaced most frequently among the strains that were named, but nearly a third of admittedly regular consumers couldn’t muster the name of their preferred strain. Many consumers who claimed to have a favorite instead simply named “sativa” or “indica.”

“Strains are important to users but not how you might guess. The booming market, combined with the nature of the supply chain and variable product availability, creates too much distraction for users to gravitate to a favorite. As the market matures, users will come to expect a consistent and reliable product experience. That’s why we’re seeing a shift toward communicating effects, such as relaxation or focus, particularly in vaping. Our insights on the customer mindset paired with test results from the scientific community underline an uncomfortable truth: strain names are increasingly meaningless. The industry needs to hit reset on what’s being delivered to customers.” — Mike Luce, co-founder of High Yield Insights, in a press release

The study was completed by independent market research firm Survata, who compiled the data via an online survey.

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Cannabis Intoxication Roadside Testing Tech Coming to Canada

8/28/2018

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Police in Canada will soon have access to new testing technology to help check drivers for intoxication from cannabis and other substances, The Canadian Press reports.

The saliva screening equipment will be used primarily to test for THC, the main psychoactive ingredient in cannabis. The technology will be made available to police departments across the country but ultimately it will be up to each department to decide individually whether to use it.

Manufacturers suggested the technology could be ready for police departments in the next four to six weeks.

Federal officials have pledged $161 million for a public awareness campaign about drugged driving and to help fund police departments’ training exercises and drug-testing equipment over the next five years. Law enforcement officials had a goal of training 2,000 officers by October to spot drug-impaired drivers, but the Canadian Association of Chiefs of Police announced last month that it will likely not reach that goal.

Canada’s legalization bill authorized roadside intoxication tests despite concerns that the technology might falsely identify a user as intoxicated because of cannabis found in their system — whether they were actually stoned or had just used the night before, or even earlier that week. Proponents of the technology are concerned that legalization will lead to a surge of stoned drivers and an uptick in car accidents and other consequences of having more intoxicated drivers on the roads.

“There’s no suggestion in any of this. That people are going to be jumping into their cars when they weren’t before — they were users that weren’t jumping into their cars and now that’s it’s legal and will now be jumping into their cars high.” — Andrew Mason, criminal defense lawyer with the Scott Phelps & Mason law firm, via Global News

Cannabis will become legal in Canada for adults 18 and older on October 17.

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Illinois Gov. Signs Hemp Legalization Bill

8/27/2018

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Illinois Gov. Bruce Rauner (R) signed a bill to legalize industrial hemp on Saturday, the Chicago Sun-Times reports. The Illinois Industrial Hemp Act takes effect immediately and legalizes the harvesting and use of hemp for paper, fabric, plastics, construction materials, and food.

Illinois’ House of Representatives had approved the hemp legalization bill by a 106-3 vote; the Senate voted unanimously for the bill.

“Legalizing the farming of industrial hemp just makes good sense. Roughly 38 states — including our neighbors in Wisconsin, Kentucky, Indiana, Missouri and Tennessee — have allowed or are considering allowing cultivation of this crop for commercial, research or pilot programs. Our farmers should have this option as well.” — Gov. Bruce Rauner, in a statement

The Illinois Department of Agriculture will be tasked with licensing farmers who are interested in growing industrial hemp. First, however, regulators must determine rules for testing hemp crops’ THC content (federal law requires hemp plants to contain no more than 0.3 percent THC).

“The production of industrial hemp has broad support among our farmers and rural families, as they know this will add another potentially significant crop that can be grown in our state. In the early 20th century, Illinois was a national leader in hemp production and I look forward to us returning to that position.” — Rep. Tim Butler (R-Springfield), the bill’s sponsor, in a statement

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Have a Heart Cannabis

Cannabis Retail Chain Becomes First to Unionize in Washington State

8/27/2018

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Cannabis retailer “Have a Heart” and workers union “United Food and Commercial Workers 21 (UFCW21)” have signed Washington state’s first cannabis collective bargaining agreement, reports the Seattle Post-Intelligencer.

“This relationship is quite unusual, in a very positive sense. It’s rare for an employer and their employees to reach a first contract so quickly and one that is so promising for current and future employees. These partnerships strengthen individuals, families and communities – and lead to superior service for customers.” — Todd Crosby, UFCW 21 President, via Seattle PI

Have a Heart’s 134 employees now have a bargaining agreement in place that currently guarantees “above-average compensation for the industry,” comprehensive health and welfare coverage, and other benefits. Have a Heart operates five retail locations in Washington and has other locations in states with legal cannabis.

“At Have a Heart, we believe in doing good. We consistently strive to have a positive impact in the neighborhoods where we do business, and we see our partnership with UFCW 21 as part of our commitment to creating a safe and empowering workplace.” — Ryan Kunkel, CEO of Have a Heart, via Seattle PI

UFCW21 represents over 1.3 million workers in the U.S. and Canada in a wide variety of industries. UFCW21 first started working with the cannabis industry in 2010 in California. Through 2011, the union signed many medical cannabis businesses in California as well as 8,000 employees in Colorado.

UFCW21 has made it a mission to organize within the cannabis industry, though complicated federal cannabis statutes and issues with labor union laws have caused the union difficulty.

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Cash Money

Pennsylvania Gov.’s Office Requests Congressional Cannabis Banking Protections

8/27/2018

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On Friday, the administration of Pennsylvania Gov. Tom Wolf (D) wrote a letter to top leaders in Congress calling for protections for banks that deal with the legal cannabis industry, the Philadelphia Enquirer reports.

Millions of dollars in cash flow across Pennsylvania — and other legal states — on a monthly basis, all nearly impossible to complete insure and extremely vulnerable to theft and other risks.

The letter, sent by Pennsylvania Secretary of Banking and Securities Robin L. Wiessmann, was signed by state banking officials from Alaska, Connecticut, Hawaii, Louisiana, Michigan, Montana, Nevada, New York, Oklahoma, and Washington state.

“We urge Congress to consider legislation that creates a safe harbor for financial institutions to serve a state-compliant business, or entrusts sovereign states with the full oversight and jurisdiction of marijuana-related activity. … The well-documented conflict between federal and state law creates barriers for banks desiring to serve businesses involved in state-licensed marijuana activities. This has resulted in regulatory and legal risk … and created a ‘cash and carry’ industry. … This raises concerns with respect to public safety, increases difficulty tracking the flow of funds, and contributes to a loss of economic activity, workforce development and community development opportunities.” — Letter from Robin L. Wiessmann, PA Secretary of Banking and Securities

Previously, the Obama-era Cole Memo had provided some protections for financial institutions dealing with the cannabis industry; however, Attorney General Jeff Sessions rescinded the memo earlier this year.

“The cash-only business creates horrific safety and operation concerns for both marijuana-related businesses and their employees, vendors, landlords and taxing bodies.” — Steve Schain, Philadelphia cannabis banking attorney, via the Philadelphia Enquirer

Nearly 70 percent of all cannabis businesses in the U.S. that have direct contact with plants do not have a bank account. Even 50 percent of cannabis businesses that don’t deal directly with the federally illegal cannabis plant are also unbanked. Insurers generally only cover up to $20,000 in “cash loss,” an amount that is easily exceeded by even small cannabis businesses; many businesses will have $200,000 to $500,000 in cash on hand.

The Wolf Administration now awaits a reply from the addressees of the letter: U.S. Reps. Paul Ryan (R-WI) and Nancy Pelosi (D-CA) and U.S. Sens. Mitch McConnell (R-KY) and Chuck Schumer (D-NY).

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New Zealand Licenses Its First Cannabis Company

8/27/2018

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New Zealand officials have issued the country’s first medical cannabis cultivation license to Hikurangi Cannabis, a company based in Ruatoria on the North Island, according to the Australian Associated Press. The license will allow the company to breed and grow cannabis for medical research by the New Zealand Ministry of Health; previously, only one university in the country was authorized to grow the plant.

The company hopes to turn its smaller research grow site into a larger, high-tech cultivation facility that will provide jobs and economic growth for their rural region.

In January, Hikurangi Cannabis crowdfunded $NZ2 million (about $1.3 million in USD) for its research plans and — according to Manu Caddie, the interim chief executive — the company has already secured a $NZ160 million conditional agreement with U.S.-based Rhizo Science.

Mr. Caddie said that the industry is “certainly going to be significant for our part of our country, in terms of job creation.”

“The rest of the world are cottoning on … places like New Zealand will struggle to compete at the commodity level, but if we can quickly build brand and intellectual property around the clinical trials, then there’s an opportunity to retain the value long-term and to keep that value in the regions.” — Manu Caddie, interim chief for Hikurangi Cannabis, via Australian Associated Press

The company’s license comes during a time while New Zealand considers a bill to legalize and regulate the production and import of medical cannabis products.

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Industrial Hemp THC Limit Raised to 1% In Western Australia

8/24/2018

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Regulators in Western Australia have approved new rules for the state’s industrial hemp farmers, raising the upper limit for THC in licensed hemp crops to one percent (from just 0.35 percent), the Hemp Gazette reports.

“From the Ord down to the South-West and Great Southern, we are seeing unprecedented support for hemp as a fibre, food and building product. The cross-party support for these amendments is a sign of the wide recognition for the job-creating potential of this industry for regional WA.” — Alannah MacTiernan, West Australia Agriculture and Food Minister, in the report

Intentions to raise the limit were first announced in February and the move brings Western Australia in line with the rest of Australia’s states.

Australia has been growing hemp for industrial purposes since the Industrial Hemp Act passed in 2004. Medical cannabis, however, is relatively new to the country and remains quite heavily restricted.

However, advocates argue that Australia is still “missing out” on the sale of cannabis and hemp nutraceutical extracts. In fact, the hemp-derived CBD products commonly sold via online marketplaces throughout the rest of the world require specific distribution licenses from Australia’s Office of Drug Control.

“Australia has a wonderful opportunity here, we have from latitude 16 down to 42, we can grow crops on a continual basis throughout the year, harvesting in the south, moving all the way to the north throughout an eight-month period. We can produce better product than anybody else can but if it has to be behind a 12-foot barbed wire fence with security guards, lights and swipe cards to get in and out — it’s not going to happen.” — Phil Warner, an Australian hemp producer, via ABC Australia

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Mormon Temple, SLC

Mormon Church Officially Comes Out Against Utah MMJ Initiative

8/24/2018

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On Thursday, leaders of the Church of Jesus Christ of Latter-day Saints hosted a news conference where they came out unequivocally against Proposition 2, Utah’s medical cannabis ballot measure to be considered by voters in November, according to an LA Times report.

Previously, the Mormon church had only made neutral, carefully considered statements and provided behind-the-scenes funding for the campaign against Proposition 2; the church had not taken a public stance against the measure until now.

“We are deeply concerned by the history of other states that have allowed medical and recreational use of this drug … and have experienced serious consequences to the health of its citizens.” — Elder Jack N. Gerard, Church of Jesus Christ of Latter-day Saints, in the report

Many in Utah now expect the church to launch a heavy opposition with television and radio ads and increased funding.

A poll from the Salt Lake Tribune-Hinckley Institute of Politics indicated two-thirds of voters in Utah support Proposition 2. With 60% of the state consisting of Mormons, however, new public opposition from the church may change those numbers.

A campaign filed earlier this month and spearheaded by attorney Walter Plumb, which was based on issues with freedom of religion regarding Proposition 2, is still awaiting a decision from the state court.

Medical cannabis advocate and Mormon DJ Schanz, leader of the proponent campaign for Proposition 2, said the church’s effort “to undermine our efforts to give patients relief is nothing new.”

“We are actually relieved that they are finally doing it in the open rather than behind the scenes. We have great hope that the voters in Utah will side with patients and in favor of compassion and see through the smoke and mirrors surely to follow.” — DJ Schanz, via the LA Times

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Marlborough Police Department Humorous Sign

NH Police Take Cannabis, Leave Humor in Illicit Cannabis Grow Bust

8/24/2018

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Police in Marlborough, New Hampshire confiscated 25 cannabis plants growing on private land and then did something unexpected — they joked about it, reports The Boston Globe. Police not only left a laminated sign reading, “Sorry about your luck,” but also made a Facebook post sharing humorous facts with the unidentified — and unarrested — grower.

“FACT: Possessing small amounts of marijuana has been decriminalized in NH. FACT: This doesn’t mean you can grow 25 marijuana plants on someone else’s property. FACT: Using your fine-tuned horticultural skills to grow delicious organic tomatoes is much more rewarding and much more legal.” — Marlborough Police Department’s Facebook Page

The sign left by police also indicated that the plants could be claimed in person at the Marlborough Police Department (MPD) with a photo ID. While possession of small amounts of cannabis has been decriminalized in New Hampshire, cultivation and sale is still a felony. Hopefully, the grower in question knows better than to actually show up.

The Facebook post was written by Police Sgt. Zachary Byam, who said in a telephone interview with the Boston Globe that the department decided against an investigation into the identity of the grower because it would be too lengthy and costly.

“The best solution was to remove the plants and spread the word. It was one of those things where we had to draw the line somewhere, and I think that this was the best decision to be made.” — Sgt. Zachary Byam, in the report

There is no sign as favorable for the decline of cannabis prohibition as a light-hearted tone from law enforcement and no arrests, especially in a state that has yet to legalize adult-use cannabis. Hopefully, other law enforcement agencies in states where prohibition is still ongoing choose to copy the MPD’s strategy.

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Courtroom

Cannabis Expungement Bill Passes California Legislature

8/23/2018

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On Wednesday, the California state legislature approved a bill that requires the state’s Department of Justice to review cannabis convictions from 1975 to 2009 and produce a list of convictions to be expunged or reduced, the Winters Express reports.

Assembly Bill 1793 was introduced in the California State Assembly by Rob Bonta (D-Oakland). California’s Department of Justice (CDOJ) said there may be as many as 220,000 convictions that are eligible for expungement or reduction.

The CDOJ has until July 1, 2020, to compile and edit the list of eligible cases. At that time, prosecutors would have a review period to exempt certain cases from expungement or reduction if they deem it “an unreasonable risk to public safety.”

Proposition 64, the measure that legalized adult-use cannabis in California, already removed cannabis convictions for previous offenders but provided no structure or mechanism to make the change. Most state district attorneys claim a lack of resources made it impossible for them to review all older cases, which will no longer be a good enough answer should Gov. Jerry Brown sign this bill into law.

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Wine Fields

Treating Cannabis Like Wine, California Plans Region of Origin Regulation

8/23/2018

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The California Department of Food and Agriculture (CDFA) is planning an “appellation of origin” system to regulate the naming of craft cannabis strains from specific regions like it does for wine, Forbes reports. In the same way that wine is named for the region — such as Napa or Bordeaux wines — small cannabis growers in the golden triangle of Northern California want Mendocino or Humboldt cannabis and regulation to ensure that it means something.

The search for novel strains, interesting experiences, and a way to stand out to consumers is of constant concern for cannabis growers. The market for growers is one of the tightest, with a race-to-the-bottom structure for prices in most legal states. Growers who take the time and money to carefully grow the highest quality products in the best environments want to be sure that customers are aware of why their products may cost more.

The CDFA wants to follow in the footsteps of the Appellation d’Origine Contrôlée and the American Viticultural Area regulatory bodies, which offer prestige to luxury manufacturers in their regions. Craft growers hope that the government-assisted marketing for their products via appellations of origin will help to fight the megafarms that are beginning to take over most legal markets.

Regulators in California are on board and have set the deadline for CalCannabis Cultivation Licensing — the subset of the CDFA that controls cannabis growers — to regulate regional titles at no later than January 1, 2021.

CalCannabis said they will have the schedule for the initial workshops regarding the appellations of origin up on their website by next week.

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California Teens Have Decreased Their Cannabis Use, Study Shows

8/23/2018

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A new study from the California Healthy Kids Survey shows that — despite increased legalization, mainstream attention, and a cultural and political shift towards a cannabis-friendly society — teenagers in California are actually using cannabis less frequently.

The biennial study, funded by California’s health and education departments, was released on Monday and covers the years 2015-2017. The last time such a study was released was for the years 2013-2015.

The study authors wrote that “although marijuana use has been declining, it remains the second most popular drug among high school students after alcohol… How the recent legalization of marijuana use for adults in California effects the declining trend among youth warrants attention.”

The study investigated cannabis usage rates among 7th, 9th, and 11th graders.

  • 4.2 percent of 7th graders said they had used cannabis; for the study during 2013-2015, 7.9 percent of 7th graders reported having used marijuana
  • 17.4 percent of 9th graders said they had used cannabis; 23.1 percent of 9th graders said so during the previous study
  • 31.9 percent of 11th graders said they had used cannabis; that number was 37.9 percent for the years 2013-2015

Ellen Komp, the deputy director of California NORML, said in a news release that the study results were an “encouraging indicator of the success of regulation.”

“It’s time to stop trying to ‘send a message’ to young people about drugs and instead implement sound, science-based policies that best protect our children and public safety, along with our privacy and human rights.” — Ellen Komp, Deputy Director of California NORML, in a news release

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