Last month, the federal Small Business Administration released a new policy indicating that direct cannabis businesses, indirect cannabis business, and hemp businesses would be locked out of the federal agency’s lending services, according to Green Market Report’s Debra Borchardt. Last week, Oregon Rep. Earl Blumenauer wrote to SBA Administrator Linda McMahon urging her to repeal the guidance, saying the rule “would be impossible to implement and wreak havoc across multiple sectors of the economy.”
“For example, would just one order from a cannabis business for soil preclude a locally-owned garden center from receiving federal government loan support in the future?” – Blumenauer in a letter to McMahon
Blumenauer says he has long-supported the SBA loan program but the guidance effectively prevents “businesses that derived any of their revenue from sales to ‘direct marijuana businesses’ and hemp-related businesses” from receiving SBA loans.
In Oregon, Blumenauer contends, the cannabis industry is worth $800 million and the companies and employees that contribute to that economy “pay taxes that support schools and local law enforcement, and contribute to their state and local economies.”
The guidance also prevents individuals that have received SBA-backed loans from leasing space “to any business engaged in any activity illegal under federal, state or local law (such as a marijuana dispensary).”
Of note: McMahon’s son, Shane McMahon, invested $500,000 for a stake in EnviroGrow, which builds cannabis-growing modules. That relationship led to a 2017 lawsuit, in which McMahon claims the company’s manufacturing plant was “virtually nonexistent.” Linda has never publicly commented on her son’s investment and did not address the cannabis issue while running for Senate in Connecticut.
The South Carolina Department of Agriculture is doubling the number of permits and the acreage allowance for industrial hemp – from 20 to 40 – under the state’s pilot program, according to a WTOC report. The permits will also allow farmers to grow 40 acres of hemp, up from 20 acres.
In order to qualify for the program, applicants must meet the following criteria:
Have a signed contract with an industrial hemp manufacturer processor;
Submit GPS coordinates where the crops will be cultivated
Results from last year’s crop aren’t yet known as farmers will begin harvesting in June, according to Department of Agriculture Director of Communications Sally McKay; however, she said that farmers are already reaching out to the agency for next year.
“Prospective growers throughout the state are eager to join the program even without knowing exactly where it’s going to grow best.” – McKay to WTOC
Last year all 20 available spots in the program were filled throughout 15 counties. According to state Department of Agriculture data, 14 farmers grew the total 20 acres allowed by their permit, while two farmers came close, growing 19.95 acres and 19.54 acres. One farm grew 18.43 acres, while the remaining two grew 5.46 and 5.97. The 20 permit recipients were chosen from 131 applications.
Cannabis advocates are raising money for a super PAC called Texans Removing Outdated and Unresponsive Politicians, aimed at ousting Texas Republican Rep. Pete Sessions, who chairs the House Rules Committee and has blocked cannabis reform legislation from reaching the floor for a vote, the Washington Examinerreports. The effort is being led by Marijuana Policy Project founder and former executive director Rob Kampia.
“[Sessions] is in fact what I call a sphincter who is constipating the process. The reason we haven’t won is just process; it’s not content.” – Kampia to the Examiner
Kampia said the PAC will bundle contributions for the Democrat who wins the primary and provide support for Melina Baker, the Libertarian Party candidate.
“I am going to bundle a whole bunch of checks and send them to the Democrat without talking to the Democrat. You are going to see a bunch of $2,700 checks flowing from the same people who you’re going to see on our [super PAC] reports.” – Kampia to the Examiner
Kampia, who now leads the Marijuana Leadership Campaign, said the PAC will fund get-out-the-vote ads targeted at libertarian-leaning Republicans who support state rights, encouraging them to support a third-party candidate, and University of Texas at Dallas students.
Responding to the news, Sessions’ campaign said that “far more people across North Texas appreciate [his] efforts to protect our families by upholding the rule of law.”
“Congressman Sessions will not be intimidated by liberal merchants of addiction who imperil the safety of our children with illegal narcotics.” – Sessions’ campaign to the Examiner
Kampia said he’d bet all his money that medical cannabis could be legalized federally “but for Sessions.”
Canadian Prime Minister Justin Trudeau has pledged that cannabis will be federally legal in the nation by this summer despite the recommendations of several Senate committees to delay the reforms’ implementation, CBC Newsreports.
“We have been working with our partners across the country to make this happen and we are going to be moving forward this summer on the legalization of cannabis. Obviously, as I’ve said many times, this is not an event, this is a process, and we will continue to work with our partners in the municipalities, in provinces and Indigenous leadership in communities to ensure that we’re getting this right and moving forward in a responsible way that supports all the partners as we move forward on this.” – Trudeau, during a May 3 press conference, via CBC
The prime minister’s comments come the day after the Senate Aboriginal Peoples Committee urged Liberal leaders to delay the bill in order to better negotiate tax sharing, prepare culturally appropriate education materials, draft addiction strategies, and ensure that First Nations can decide whether or not they want legal cannabis sales in their communities.
“Make no mistake, this is a public health and public safety issue that we committed to in the election campaign that we will be moving forward with this summer.” – Trudeau, during the press conference, via CBC
The bill was also recently criticized by the Canadian Real Estate Association, who claimed that allowing individuals to grow their own cannabis would cause home prices to fall or cause properties to become uninsurable because financial institutions might be reluctant to protect properties once used for cultivation because of the risk of structural damage. At least two provinces, Quebec and Manitoba, have announced they will not allow home cultivation. Trudeau defended the home-grow provision of the bill as “based on logic and evidence” and said he expects provinces to follow the law as written, which could prevent provinces form enacting home-grow bans.
The Senate has agreed to have a third reading vote on the measure on or before June 7. If the Senate amends the measure those changes would need to be approved by the House of Commons.
During the 2015-2016 campaign cycle, cannabis companies, advocates, and entrepreneurs donated at least $1.8 million to California political campaigns in an effort to pass Prop. 64 and legalize cannabis for adults. From Jan. 1, 2017 through Apr. 26, 2018 the industry has donated more than $600,000 to California campaigns, the Los Angeles Daily Newsreports. The figure is at least four times what the industry spent on political campaigns during the 2013-2014 election cycle.
Democrats welcome industry donations. According to the CALmatters data, the Democratic convention in February was sponsored by Eaze – a cannabis delivery company – which additionally donated $45,000 to the party. Lt. Gov. Gavin Newsom has raised $495,000 as of April – the most money from the industry – for his gubernatorial bid. State Treasurer John Chiang, who has pitched the idea of a state bank for the industry, has raised at least $10,100 from cannabis firms and advocates. Attorney General Xavier Becerra has raised at least $21,000 for his re-election bid. In 2014 his opponent, Kamala Harris, who currently serves as a U.S. Senator, did not accept industry money. Democratic state Sen. Ricardo Lara has raised at least $18,000 from the industry and is currently running for Insurance Commissioner.
The California Cannabis Industry Association has raised more than $290,000 for their political action committee since its 2014 launch.
“I’m sure we will [continue] soliciting from the cannabis industry. It’s a legal industry in California. It’s not one that hurts the environment, it’s not undermining our society. So we welcome their dollars.” – California Democratic Party Chairman Eric Bauman to the Daily News.
The party does not accept money from the alcohol or tobacco industries.
By the numbers: 27 percent of recreational cannabis users reported using fewer over-the-counter medications, 22 percent reported using fewer sleep aids, 21 percent indicated they consumed fewer spirits, and 20 percent said they consumed less beer.
The researchers also found individuals 55-and-older are “re-engaging” with cannabis. Mike Luce, co-founder of High Yield Insights, said that 55 percent of those 55-and-older returned to using cannabis after having tried it when they were younger.
“We are just starting to grasp how legalization has impacted consumer behavior, be it spending, usage occasions, or shopping habits. Understanding these changes will lead to new growth opportunities for cannabis and further disruption for other categories.” – Luce in a press release
The analysts found that 65 percent of respondents viewed legalization as positive for their communities. Consumers also indicated that they want to see more convenient cannabis products such as edibles and pre-rolls.
The report is the first in a series from Chicago, Illinois-based High Yield. Upcoming reports will focus on micro-level consumer behaviors, and cannabis product and format preferences.
The Michigan Medical Marihuana Review Panel has recommended 10 conditions be added to the state’s medical cannabis program, according to an MLivereport. In all, 22 conditions were submitted for consideration by the panel.
What conditions were approved:
Arthritis
Autism
Chronic pain
Inflammatory bowel disease
Obsessive-compulsive disorder
Parkinson’s disease
Rheumatoid arthritis
Spinal cord injury
Tourette’s syndrome
Ulcerative colitis
What conditions were denied:
Anxiety
Asthma
Brain injury
Depression
Diabetes
Gastric ulcer
Panic attacks
Schizophrenia
Social anxiety disorder
The panel was deadlocked on three conditions: colitis, organ transplant, and non-severe and non-chronic pain. The board will consider those conditions at a future meeting with the rest of the board present to weigh in and potentially break the tie.
Michigan‘s current regime allows access to the program for patients suffering from 10 specific conditions and other chronic or debilitating diseases and medical conditions, or treatments that produce cachexia or Wasting Syndrome; severe and chronic pain; severe nausea; seizures, including epilepsy; and severe and persistent muscle spasms, such as those characteristic of multiple sclerosis.
Most of the recommendations will be approved or denied by July 10. The final decision is made by Department of Licensing and Regulatory Affairs Director Shelly Edgerton. She has until Aug. 6 to make a decision on the chronic pain condition.
The Federal Court of Appeals in San Francisco ruled in an unpublished Memorandum of Disposition this week that the Drug Enforcement Administration’s December 2016 Marijuana Extract rule change stands. The rule change added a new code number to the DEA rules for “Marihuana Extracts” to make it easier for the DEA to track and trace CBD and other Marijuana Extracts imported to and exported from the United States.
The troublesome part of the new code is that it redefines “Marihuana Extracts” as “an extract containing one or more cannabinoids that has been derived from any plant of the genus Cannabis, other than the separated resin (whether crude or purified) obtained from the plant.” The challenge to the rule was based on the expansion of the definition of Marijuana to all plants in the genus Cannabis, which could now arguably include extracts from hemp. The DEA made it clear in their rule statement: their policy is that “Extracts of marihuana will continue to be treated as Schedule I controlled substances.”
However, the 9th Circuit based their disposition on procedural grounds — the Hemp Industry Association’s arguments lost not because they were wrong, necessarily, but because they did not raise their arguments during a specified public comment period. The court did not decide whether the DEA has the authority to create the 2016 rule or whether expanding the definition of Marijuana to include all plants in the genus Cannabis exceeded the DEA’s authority. Specifically, under existing 9th Circuit Court precedent and the Controlled Substances Act (“CSA”), the DEA lacks the legal authority to add or remove substances from the Schedules within the CSA. The CSA permits only the Attorney General (or congress through legislation) to add or remove substances from the CSA.
This changes nothing. This changes everything.
The DEA’s new “Marihuana Extracts” rule went into effect in December 2016, so this week’s decision was not actually a change in policy at the DEA — that happened months ago. All that happened this week is that a three-judge panel quashed a challenge to the rule, a decision that will most likely be appealed. Cannabis in almost all forms is still illegal under Federal law, but also legal in some form in over 30 states and the District of Columbia. Hemp and marijuana are treated differently in some ways, and the same in others, often turning on some legal fiction that is unsupported by either science or common sense.
CBD derived from marijuana is legally equivalent to THC, heroin, and psilocybin.
While the DEA’s rule change did not add CBD to the official list of Schedule I controlled substances, the clear effect and stated intent of the rule change is to treat CBD as a Schedule I drug, just like THC, heroin, magic mushrooms, ayahuasca, and PCP. No one really expects the DEA to start raiding CBD supplement companies, but that risk is higher than it was last Thanksgiving, and slightly higher today than it was last week.
All 29 state governments that license and regulate MMJ are criminal co-conspirators
When Washington State passed its medical marijuana regulatory bill in 2011, then-Governor Christine Gregoire asked then-US Attorney Jenny Durkan (who is now Seattle’s Mayor) whether state employees who license and regulate medical marijuana providers could be prosecuted under Federal drug statutes. Ms. Durkan, in her official capacity as the top Federal prosecutor for Western Washington, answered with an unequivocal yes. Her official position was that Federal prosecutors could not only investigate and charge MMJ providers, but also doctors, landlords, financiers, and any state employee who licensed, regulated, audited, or inspected those businesses.
Today, it is clear that the DEA has little appetite for charging state employees with federal drug conspiracies and they are also precluded from using their budget to interfere with the implementation of state medical cannabis laws. Additionally, the Department of Justice is further prohibited from using federal funds to interfere with transport, processing, sale, or use of products derived from federally authorized industrial hemp pilot programs. These limitations don’t fix the contradictions and conflicts in the law, they merely delay the hard choices.
Legal and logistical burdens of recreational cannabis may now apply to CBD
The trend in the industry has been to treat CBD the same regardless of the source. With the DEA’s rule and the 9th Circuit’s disposition of the challenge, it is now more important than ever to document the source of CBD sold outside of the adult-use and medical marijuana markets. In order for a business to sell CBD outside the state regulated markets, the business will need to prove the CBD came from one of the two legal sources of hemp.
The first legal source for hemp comes from the parts of the “Marihuana” plant that are specifically excluded in the CSA. Since this is primarily the mature stalks of the plant, it must be grown outside the U.S. and imported. Until 2014, this was the only legal source of hemp, hemp oils, and hemp extracts available within the U.S.
However, in 2014, Congress passed an Amendment to the Farm Act that created federal industrial hemp pilot programs. These pilot programs permit research into the growth, cultivation, and marketing of industrial hemp in states that establish industrial hemp pilot programs. The Farm Act is silent as to what the states can do with the industrial hemp once it is grown and each state that has adopted a pilot program has passed drastically different rules on what can and cannot be done with the industrial hemp after it is harvested. Some states strictly prohibit processing the hemp for human consumption while other states clearly permit the processing of that hemp into hemp oil and other hemp extracts that would include CBD. Therefore, CBD extracted under a state-regulated industrial hemp pilot program remains hemp and remains outside the DEA’s authority to control.
There is no guarantee that the DEA will adhere to this differentiation. In fact, in a non-binding Statement of Principles on Industrial Hemp issued jointly in 2016 by the DEA, FDA, and USDA, the agencies made it clear that they intend to tightly construe the Farm Act and industrial hemp pilot programs. Their opinion is that the Farm Act did not remove hemp from the CSA and that any drugs derived from such industrial hemp still fall within the CSA. Luckily, at least for the time being, Congress has curtailed any interference from such federal agencies by prohibiting the use of federal funds to interfere with the transport, processing, sale, or use of products derived under a state industrial hemp pilot program. This prohibition extends to all state enforcement agencies that accept federal funds for any purpose.
In conclusion, the question of whether or not CBD is a controlled substance continues to hinge on the source of the CBD. If the CBD is derived from a source that is already legal in commerce, then the CBD itself is still legal under federal law and the DEA’s guidelines. Although the DEA maintains that “it is not practical to produce extracts that contain more than trace amounts of cannabinoids [CBD] using only the parts of the cannabis plant that are excluded from the CSA definition of marijuana, such as oil from the seeds.” The DEA also maintains that “if a product, such as oil from cannabis seeds, consisted solely of parts of the cannabis plant excluded from the CSA definition of marijuana, such product would not be included in the new drug code (7350) or in the drug code for marijuana (7360), even if it contained trace amounts of cannabinoids [CBD].”
Editor’s Note: This article was co-authored by Orion Inskip, an attorney at Gleam Law who specializes in litigation issues.
Colorado’s legislature has passed a social-use measure that would allow individuals to consume small amounts of cannabis – either by edibles or vaping – on site, the Denver Postreports. If signed by Gov. John Hickenlooper, Colorado would become the first state to allow social cannabis use.
The bill limits consumption to current recreational cannabis retailers and does not allow sharing or outside cannabis to be used on-location. Rep. Jovan Melton said the legislation would help address the issue of tourists and others consuming cannabis in public spaces. The bill prohibits food beyond single-serve edibles, smoking, alcohol, employee consumption, and free samples.
“I think this moves the ball forward in allowing the industry to do some sort of consumption … but does it in a way that I would say is pretty conservative. It’s actually pretty limited.” – Melton to the Post
The Marijuana Enforcement Division has opposed all previous social-use legislation. MED Director Jim Burack called this approach “incremental” and “responsible.” The American Cancer Society Action Network opposes the measure – because of the vaping provisions – and plan to submit a formal veto request to the governor.
Voters in Denver approved a social-use initiative in 2016. City officials approved the first social-use license in February. Some Colorado cities have created “private club” exemptions which allow for on-site use.
Officials in Alaska and Massachusetts are considering social-use proposals. Alaska officials have indicated they would consider the reforms next month, while Massachusetts regulators plan to consider rules in November but, so far, neither have codified plans. Maine lawmakers removed social-use language from the state’s adult-use implementation bill. California allows social-use with city approval. Nevada does not allow public use but the definition of “public spaces” does not include retail shops. Neither Oregon nor Washington allow on-site consumption.
Chittenden County, Vermont Attorney Sarah George is pursuing a plan to erase convictions for low-level cannabis crimes, according to a NECNreport. George, the head prosecutor for the state’s most populous county, said she believes officials are actually “behind in this discussion.”
“Any time that someone has a conviction on their record of something that is now legal, it should be expunged.” – George to NECN
George suggested that prosecutors in states that have legalized cannabis should be more open to erasing charges for what is now legal. Several states – with legalized cannabis, medical cannabis programs, and even some without broad reforms – have moved to expunge low level cannabis charges:
An Illinois House Committee approved a measure last month to erase low-level convictions for cannabis and paraphernalia possession.
The Virginia Senate, in February, passed a bill that would expunge charges for first-time cannabis offenders for $150.
Officials in San Francisco, Sonoma County, and Alameda County, California have taken proactive approaches to the criminal reforms included in Prop. 64, which legalized cannabis for adults in the state. Those officials have moved to make the expungement process easier and expand the scope of the reforms. The state legislature is considering a bill that would force courts to expunge all records of those convicted of possession of up to 28.6 grams of cannabis and 8 grams of concentrates.
Alaska’s House passed a bill last month to restrict public access to some criminal records for simple cannabis possession. That measure is currently in a Senate committee.
Colorado Gov. John Hickenlooper last year pardoned 14 individuals charged with cannabis possession and in February announced he was considering 40 more.
In 2016, Missouri – which does not have legal cannabis access for adults and only a limited medical cannabis program – approved legislation to expunge the majority of the state’s low-level cannabis convictions.
The Ontario, Canada government has awarded a $300,000 research grant to Province Brands of Canada to help them develop a beer brewed with cannabis, theOttawa Citizen reports. The Toronto-based company will work with Loyalist College to develop the beer.
Edibles are not included in the federal legalization plan but lawmakers have indicated they would consider adding edible products to the regime in 2019.
Licensed producer Canopy Growth has been working on a cannabis-infused drink for three years and has partnered with U.S. alcohol distributor Constellation Brands on the project. However, Canopy CEO Bruce Linton is adamant the company is not creating beer, rather a new category of beverages.
“We are not going to call it beer. Beer is beer. There will be a cannabis beverage selection, which will not be called something it’s not. Beer is beer, wine is wine, vodka is vodka. I’m not making those things. I’m displacing those things.” – Linton to the Citizen
Province Brands is partnering with Loyalist College’s Applied Research Centre for Natural Products and Medical Cannabis which holds a Health Canada license to research cannabis. The $300,000 grant was administered through the Ontario Centres of Excellence, which promotes collaboration between industry and academia for commercial products.
Republican lawmakers in Michigan are considering tying recreational cannabis legalization to a bill to cut the state’s income tax amid fears that having the issue on November’s ballot will drive voter turnout, especially among young voters who tend to vote Democrat, the Detroit Free Pressreports. The Republicans working on the plan to cut the state’s 4.25 percent income tax say cannabis legalization would make up for the losses to state coffers by including a 10 percent excise on top of the state’s 6 percent sales tax.
The plan would also give lawmakers more control over what legalization looks like and how it is implemented. However, one House Republican said the party doesn’t have the votes for cannabis legalization. Speaker of the House Tom Leonard said he doesn’t see the caucus taking up the measure.
“That is crazy. I don’t see the marijuana petition going up on the (voting) board.” – An unnamed House Republican to the Free Press
Democrats also don’t want legalization to occur through the legislature because they fear voters would see it as subversion and don’t want the proposal amended. If legalization were approved by lawmakers they would need a simple majority to amend it; if passed by the public it would require three-fourths of the legislature to approve any changes.
“Either way, we’re not on board.” – Senate Minority Leader Jim Ananich to the Free Press
The Coalition to Regulate Marijuana Like Alcohol, the group behind the ballot initiative, expects to deal with legislative changes. Spokesman Josh Hovey indicated the group was “fine” with the legislature passing the reforms so long as they are “passed one way or another.”
Maine lawmakers have overridden Gov. Paul LePage’s veto of the recreational cannabis implementation bill, setting the stage for sales to begin in early 2019, the Bangor Daily Newsreports. The House voted 109-39 while the Senate voted 28-6 to override the veto.
The re-written law is opposed by Legalize Maine. The measure makes significant changes to what the group drafted and what was, narrowly, approved by voters in 2016. The legislature removed language allowing social use clubs, cut home grow limits from six plants to three, increased the effective sales tax rate from 10 percent to 20 percent, and forces municipalities to opt-in before sales can commence in the city or town.
David Heidrich, a spokesman for the Department of Administrative and Financial Services suggested it would take “less than nine months” to finalize and implement the rules for the law, which would also need to be approved by the next legislature which will convene in January. Heidrich indicated the LePage administration will hire a consultant to assist with the rulemaking.
As passed, the measure does not cap the number of cannabis cultivation licenses in the state but, according to a Portland Press Heraldreport, for the first three years, the licenses will only be available to individuals who have lived and paid taxes in Maine for at least four years.
Canadian Prime Minister Justin Trudeau is non-committal about whether he is willing to delay implementing the bill to legalize cannabis for adult use in the nation as Senate committees recommend changes to the landmark legislation, the Canadian Pressreports. The chamber’s Aboriginal Peoples Committee released a report on Tuesday urging Liberals to delay the measure in order to better negotiate tax sharing, prepare culturally appropriate education materials, draft addiction strategies, and ensure that First Nations can decide whether or not they want legal cannabis sales in their communities.
“We’ll continue to consult a broad range of Canadians. And as our parliamentary secretary Bill Blair says regularly, legalization is not an event, it’s a process. And that process will continue.” – Trudeau to the Canadian Press
The Senate National Security and Defense Committee is concerned about the treatment of Canadian travelers in the U.S. They fear that Canadians who admit to consuming cannabis could be turned away from the border or be more likely to face border interrogations.
“Canadians must be confident that they will still be able to cross into the United States without fear that activities legal in Canada will be held against them.” – Sen. Gwen Boniface, chair of the National Security and Defense Committee, in a statement, via the Press
The Committee on Legal and Constitutional Affairs said they have “serious concerns” about the potential impact of cannabis use on youth and the mentally ill. The Senate Social Affairs Committee is still conducting its own study.
The Senate is expected to vote on the measure by the end of next month.
All eyes are on Canada this year as the nation steadily progresses toward establishing its highly anticipated national adult-use marketplace — so we invited David to an interview to talk about his work with KPU and what he has done to help prepare Canada’s workforce for the impending industry. Check out his responses below as we dive into the complex relationship between cannabis educators, cannabis professionals, and cannabis patients and/or enthusiasts.
Ganjapreneur: What can Kwantlen’s Cannabis Education Series do for someone who wants to join the industry? What are the main takeaways?
David Purcell: The Cannabis Career Training series is currently offered through three, eight-week, online courses which are: Plant Production and Facility Management; Marketing, Sales and Drug Development; and Financing a Cannabis Enterprise in Canada. These courses are meant to provide a foundational understanding of the industry through an in-depth look at the cannabis plant, where and how it is grown, and the industry in Canada all taught based on the current and evolving regulatory framework. We are currently developing a Cannabis Cultivation Technician course, which will be a 32-week comprehensive course to teach students how to grow cannabis in a licensed facility, as well as a Retail Training course to meet the needs of the current medical, and future recreational markets.
When was it clear to you that the cannabis industry would need a dedicated educational series?
KPU recognized very early on that there was going to be a need for an educational platform. As medical cannabis use in Canada increased, we recognized the need to provide education to patients, producers and the general public. The industry was relatively new, and there were no accredited, degree-granting universities taking on the challenge of building a cannabis education program at the time. As the industry began to grow, we focused on key industry experts to assist with the expansion of the program to include the coursework that is currently on offer.
Was there ever pushback from your university over the program due to the plant’s legal status?
When we decided to pursue cannabis education, we ensured that we would only work with legitimate, credible resources within the Canadian medical cannabis industry. Given that medical cannabis had been legalized in Canada at this point helped, but it took a bit of effort, and some excellent work from our staff and industry partners to develop a curriculum that proved to offer a great deal of value to both the general public as well as the industry on the whole.
Considering Canada’s plan for nationwide legalization, what do you expect to be the biggest obstacle or issue to overcome as the program comes online?
I think that the industry is going to have a difficult time scaling up to meet the demands of the country. It is generally accepted that the supply of cannabis will not meet the demands of the recreational market once recreational legalization takes place this summer. KPU educators have the same challenges relating to scaling up. We recognize the importance of providing quality education in the cannabis space to Canadians but can’t possibly scale fast enough to do so on our own. To meet this challenge, KPU has, and continues to establish key partnerships with colleges and universities across Canada to develop and deliver cannabis education as a means to ensure that the needs of the industry and future learners are met.
How often does each 8-week series run and can you enroll in all three at the same time, or do they build off of each other?
The demand for the Plant Production and Facility Management Course has been so high that we are running concurrent intakes every four weeks. All other courses run every nine weeks– that’s an eight-week course with a one week break to grade final assignments etc. The courses currently do not ladder into each other, but we are working on a series of courses that will stream together. You can enroll in all three at the same time, but that would be quite the commitment. From a student’s perspective, the time commitment is typically 8-12 hours per week per course.
Who actually compiles the curriculum for each course and how is the information gathered?
We are fortunate to have a number of working relationships with licensed producers across the country. We often collaborate with these partners to determine what their workforce training needs are and build programming to fill those needs.
How have the licensed cannabis companies you’ve approached reacted to the Kwantlen Cannabis Education series?
The reaction has been overwhelmingly positive. There are a number of success stories of our graduates now working for licensed producers throughout the country. Again, we try to keep an open line of communication with the licensed producers so as to be able to build for their current needs as well as anticipate training needs of the future.
Can you share your favorite or most rewarding experience you’ve had since starting this project?
It isn’t one single event, but rather the continuous breaking down of the stigma that surrounds cannabis. I participate in a number of events outside of the cannabis industry and when I tell people what I do for a living, the responses and reactions are typically formulated out of a complete lack of understanding as to what cannabis is all about. The typical understanding is that the industry is just a bunch of “stoners.” If I can open their minds even a little bit with conversation and some high-level explanation of the industry, the plant, some of the therapeutic benefits etc., I find that to be very rewarding.
Do you plan to eventually offer an in-person cannabis education series, and what would you need to make that happen?
We are in the final stages of writing the curriculum for our Cannabis Cultivation Technician course, which will be a full-year course and will be delivered both online and in-person. The intent of the course is to fill the need for trained cultivators as the Canadian industry expands – at an incredible pace! What makes this particular course so unique is that we have secured an agreement with a local licensed producer to allow our students into their facility to have a hands-on experience and work directly with cannabis. This course will be launched this fall. Beyond that, and in addition to our existing courses, we hope to move towards a more formal academic path with our cannabis curriculum.
Besides signing up for a class, do you have any advice for someone who is thinking about getting involved in the cannabis space as Canada’s adult-use market comes online?
Education and knowledge is key. For those wanting to enter into the cannabis industry, it is critical that you have an understanding of the overarching Federal regulatory framework (C-45); and perhaps more importantly, your Provincial regulations, as well as the local regulations. Here in B.C. for example, the guidelines for private retailers of cannabis were just released and while private retail sale will be legal provincially, individual municipalities can dictate whether or not they will allow retailers in their particular jurisdiction. An important element of a successful venture into the space is to know the regulations.
Thanks, David, for taking the time to answer our questions and share your experiences. To learn more about David and Kwantlen Polytechnic University’s Cannabis Career Training, check out KPU’s website or sign up here to receive updates about the program.
The Vermont Senate Judiciary Committee voted 4-1 against a bill to allow law enforcement officers to use a roadside saliva test to test drivers for cannabis impairment, the Burlington Free Pressreports. Sen. Joe Benning, a Republican member of the committee and criminal defense attorney, said he opposed the measure because the test doesn’t prove whether a driver is “actually under the influence.”
The bill was approved by the House in March and is backed by Gov. Phil Scott and Commissioner of Public Safety Tom Anderson. In a joint statement with Vermont Association of Chiefs of Police President Jennifer Morrison and Vermont Sheriffs’ Association President William Bohnyak, Anderson called the committee’s decision “a loss for all Vermonters and inconsistent with a commitment to highway safety.”
“This bill is an important part of the state’s highway safety strategy, and its passage would ensure Vermont has a mechanism to effectively remove impaired drivers from our roadways and hold them accountable.” – Anderson, Morrison, and Bohnyak in the joint statement.
The measure was opposed by the American Civil Liberties Union of Vermont. The organization’s policy director, Chloé White, previously told the House Transportation Committee that the bill was “much more invasive of privacy and bodily integrity than a breathing test.”
Scotts Miracle-Gro CEO Jim Hagedorn said that the company is going to have to cut staff and restructure the company as sales took a hit from the “completely botched legalization” of cannabis in California, according to a Columbus Business Firstreport. The company expects to save $15 million consolidating operations and $20 million from cutting duplicate jobs, although the company has not indicated how many jobs they expect to eliminate.
Since 2015, Scotts has spent $1 billion to grow its Hawthorne Gardening Co. hydroponics subsidiary, including investing in or the acquisitions of: AeroGrow Internatinal Inc; American Agritech LLC, DBA Botanicare; Agrolux Holding B.V.; Gavita International B.V.; Can-Filters; General Hydroponics; and, most recently, Sunlight Supply, Inc – which is expected to close June 1.
“We built this whole business based on the idea the (marijuana industry) would go professional. It’s really disappointing to see the mayhem. It’s grown up in a really entrepreneurial way naturally. The maturation of the marketplace as it goes legal has been really disruptive.” – Hagedorn to Columbus Business First
The agreement to acquire Sunlight Supply – for $450 million – was the company’s largest to date but Hagedorn said it was worth the cost because it represents the “missing piece” of supply chain management for Hawthorne.
Kentucky’s hemp industry saw more than $16.7 million in gross product sales last year, which led to $7.5 million for hemp farmers and created 81 new full-time jobs, the Louisville Courier-Journalreports. The figures, outlined in a letter by state Agricultural Commissioner Ryan Quarles to Kentucky’s Senators, further bolster Senate Majority Leader Mitch McConnell’s legislative push to legalize hemp throughout the U.S.
In the letter, Quarles said his goal is to make the state “an epicenter for hemp farmers and processors” and that Kentucky will “have a head start” in the hemp sector when Congress finally removes the crop from the Controlled Substances Act – which McConnell’s bill would achieve.
According to the report, the Kentucky Narcotic Officers’ Association opposes hemp legalization. Tommy Loving, the head of the organization, told the Courier-Journal that law enforcement officers cannot easily determine the difference between cannabis plants containing less than 0.3 percent THC – which are defined as hemp – and plants above that threshold which are illegal under both Kentucky and federal law.
The 2014 federal Farm Bill – backed by McConnell – allows states to conduct pilot programs for industrial hemp cultivation and under those programs farms must register with their state. So far, 34 states have implemented such programs.
Applications for a variety of Massachusetts canna-businesses are now open including craft cooperatives, micro-businesses, transporters, independent testing laboratories, and lab agents, the Boston Business Journalreports. According to the report, 312 applications have already been submitted to the Cannabis Control Commission, but just 25 have completed at least one part of the four-part process.
The agency is still reviewing priority certification applicants. The CCC received some 813 applications by last month’s deadline, but 400 of those were reportedly incomplete. So far, 66 social-equity applicants have been approved for priority certification and 80 medical cannabis operators have been approved to operate under the recreational regime. Transporters were expected to begin applying on June 1; however, CCC Executive Director Sean Collins indicated the CCC decided to include transporters in the current round of applications. He expects the number of applications to increase “pretty dramatically.”
Adult-use cannabis sales are expected to begin in Massachusetts July 1. Collins said that the application process has “launched successfully.” Once implemented, Massachusetts will become the first New England state to allow recreational cannabis sales.
Maine and Vermont have also passed legislation to allow adult cannabis use. Although Vermont’s legislature-approved law does not provide for a taxed-and-regulated industry and Maine’s governor has twice vetoed recreational implementation bills.
Ninth Circuit appeals court judges have ruled against the Hemp Industries Association in their bid to overturn a move by the Drug Enforcement Agency to classify CBD as a Schedule I substance under the Controlled Substances Act. The new rule took effect Jan. 13, 2017.
In the April 30 ruling, the panel of three judges concluded that the petitioners – the HIA, Centuria Natural Foods, Inc., and R.M.H. Holdings, Inc. – “did not participate in notice and comment, but insist that a comment submitted by a private citizen adequately raised the concerns that now comprise their petition.”
The ruling focuses on one comment, which asks whether the new DEA rule would cover “100 [percent] pure [CBD] by itself with nothing else?” To which the DEA responded by rephrasing the definition of “extracts” to apply to an “extract containing one or more cannabinoids.” While the petitioners had argued that the rule effectively created a new substance under the federal CSA, the judges ruled that “neither this comment nor any other raised with sufficient clarity Petitioners’ current argument that the Final Rule scheduled a new substance.”
The judges concluded that the rule does not conflict with the 2014 Farm Bill because the notice of the rule change – July 5, 2011 – predates the Farm Bill.
According to a Hemp Industry Dailyreport, the petitioners plan on appealing the ruling.
Missouri’s House has passed a medical cannabis measure that would allow individuals with terminal illness and 11 other conditions to access the program, the Columbia Missourianreports. The bill would allow access to non-smokable products, such as pills or tinctures, and provides for in-state production overseen by the state Department of Agriculture.
The qualifying conditions list includes: cancer, glaucoma, HIV, AIDS, Lou Gehrig’s disease, Crohn’s disease, Parkinson’s disease, ulcerative colitis, Alzheimer’s disease, epilepsy, multiple sclerosis, and post-traumatic stress disorder. Patients would have to obtain a recommendation from a physician or neurologist to participate in the program. The Department of Health has the jurisdiction to add conditions to the list if it receives a petition signed by at least 10 physicians.
The measure was introduced in the chamber by Republican Rep. Jim Neely, who told his colleagues “there has to be room for compassion.”
“There are thousands of clinical trials being conducted in the United States that provide hope for terminal patients, including dozens of cannabis trials.” – Neely, on the House floor, via the Missourian
The bill passed the House 112-44 and next moves to the state Senate. Under current Missouri law, epileptic patients can access low-THC, CBD-dominant products.
Advocates in Idahohave stopped collecting signatures for the ballot initiative to legalize medical cannabis in the state and the group behind the effort, the Idaho Medical Marijuana Association, has dissolved, according to a Spokesman-Reviewreport. The organization’s president, Tesla Gillespie, said the group wasn’t sufficiently organized or funded to collect enough signatures.
Gillespie said she was unsure how many signatures were collected before the effort was abandoned. The group needed 56,000 by April 30. This is the fourth failed bid to legalize medical cannabis in the state. In 2012 and 2014 advocates were unable to collect enough signatures. In 2016 the initiative was withdrawn before signatures were counted.
Neither this initiative nor any previous attempts would have created a broad industry. Instead, they relied on caregivers with low patient-to-provider ratios. Chris Lindsay, legislative analyst for the Marijuana Policy Project – who drafted a proposal in 2010 – said the initiatives focused “more on regulatory aspects.”
“The timeline is that these laws started heavy on individual protections with barely a mention of business.” – Lindsay to the Spokesman-Review
In 2015, lawmakers approved a bill to legalize CBD for epileptic children; but Gov. Butch Otter vetoed the measure. Earlier this year a debate to legalize CBD oil turned into a shouting match and the bill ended up being held in a Senate committee, preventing it from further consideration. During a Health and Welfare Committee meeting Chairman Lee Heider told his colleagues behind closed doors – in violation of the state’s open meetings law – that the bill was opposed by the governor, state prosecutors, and the office of drug policy. The measure had cleared the House with a veto-proof majority.
Republicans in Iowa’s House threatened to kill a bill to address opioid addiction if it included expanded medical cannabis language, forcing the amendment sponsor to withdraw the motion, the Des Moines Registerreports. While the Senate is still considering a measure to remove the 3 percent THC cap under the state’s current medical cannabis regime, House Speaker Linda Upmeyer has indicated she is not ready to approve any expansion, including the language in Sen. Thomas Greene’s amendment.
“Medical cannabis is an issue that needs to move. This is an issue that cannot be put off year after year after year.” – Greene on the Senate floor, via the Register
The Senate had approved the medical cannabis amendment unanimously. The amendment would have allowed individuals with opioid addiction to access the state medical cannabis program. The bill being considered by the Senate would expand the program to allow physicians to approve medical cannabis for any condition, which, if approved, would allow physicians to recommend medical cannabis as an exit therapy for opioid addiction.
Gov. Kim Reynolds sides with Upmeyer: both want to hear from the state’s medical cannabis advisory board before expanding the program. Upmeyer suggested that if the board recommends changes the legislature could take up legislation to address those suggestions next year.
Medical cannabis sales in Iowa are set to launch in December; however, under the current regime, those non-smokable products will contain 0.3 percent THC or less.
Colorado’s Sweet Leaf Marijuana Centers could lose its 26 retail, cultivation, and manufacturing licenses after a municipal hearing officer ruled that the company pocketed millions of dollars in a “looping” scheme that allowed customers to purchase the maximum amount of cannabis multiple times a day and sell it in the illicit market, the Denver Postreports.
At least half of the loopers were from out-of-state. Hearing Officer Suzanne Fasing found that people from Arkansas, Nebraska, New Mexico, and Texas had participated in the scheme; some of those individuals have already been convicted.
Sweet Leaf owners reportedly encouraged and directed the practice. Investigators discovered conversations on Slack promoting the scheme.
“Looping is going to be going on until the new year most likely. Please talk it up with (extended plant-count) patients. We need med sales up!” – Sweet Leaf owners in a Slack conversation, via the Post
Attorneys for Sweet Leaf argue that the law prior to Jan. 1 did not prohibit multiple sales of more than 1 ounce per day. The state changed the rules on Jan. 1 to codify that language.
Denver’s director of marijuana policy will have the final say on the case after a 10-day period for objections and a five-day period for responses. That decision could come in a few weeks.
