New York City Mayor Bill de Blasio has given the Police Department 30 days to come up with a plan to end “unnecessary arrests” for cannabis, and city officials – including prosecutors – are working on broad plans to reform how to handle low-level cannabis crimes, the New York Timesreports. However, the changes will likely create a patchwork of laws throughout the five boroughs and won’t put an end to stop-and-frisk policies that usually lead to cannabis possession tickets or arrests.
Two NYC district attorneys have already laid out their plans: Manhattan District Attorney Cyrus R. Vance Jr. said his office will stop prosecuting cannabis possession and smoking arrests this summer; he gave the NYPD the same deadline to make their pitch for still charging some people for those low-level crimes.
Brooklyn District Attorney Eric Gonzalez indicated they had thrown out twice the number of cannabis-smoking cases over the last three months and plan to stop prosecuting even more of them.
Police Commissioner James P. O’Neill has conceded that at least some of the cannabis-related arrests “have no impact on public safety.” He plans on convening a working group to review cannabis-enforcement tactics.
A New York Times investigation published on Sunday found that black people were arrested for low-level cannabis charges at eight times the rate of their white counterparts over the last three years. Hispanic people were arrested at five times the rate of white people. The investigation found that police also made more arrests in black neighborhoods when people called them for cannabis-smoking complaints.
According to an 11Alive News poll conducted by Survey USA, 55 percent of Georgians believe cannabis should be legalized for recreational use in the state. Thirty-five percent of respondent said cannabis should remain outlawed, with 10 percent unsure.
An 11Alive poll in 2016 found 48 percent supported legalization, with 38 percent opposed.
Despite the citizen support for broad reforms, Georgia still has the most limited medical cannabis program in the nation. The state does not allow physicians to recommend medical cannabis, instead allows program registrants to possess up to 20 fluid ounces of low-THC oil. The state also provides no legal way to produce or purchase the products in-state. Earlier this month, Gov. Nathan Deal signed legislation adding post-traumatic stress disorder and intractable pain to the program, but lawmakers failed to pass any broad expansion to the regime.
A cannabis legalization measure is pending in the Senate. That bill, which carries no Republican sponsors, is in the Senate Health and Human Services committee. Sen. Curt Thompson, the bill sponsor, estimates a legal cannabis industry in Georgia could bring in $340 million a year in tax revenues. Thompson has also introduced legislation to implement a comprehensive medical cannabis regime.
Canopy Growth Corp. – Canada’s largest cannabis company – has applied to list on the New York Stock Exchange, Bloomberg Newsreports. If approved, it would become the first cannabis producer to trade on the exchange.
CEO Bruce Linton said he planned to list on the Nasdaq earlier this year but that he pulled back to finalize the deal with Constellation Brands, Inc. Constellation, the U.S. distributor of Corona beer and Svedka vodka, agreed to acquire a 9.9 percent stake in Canopy for about $191 million. He said choosing the NYSE over the Nasdaq adds more credibility to the company.
“Ultimately one of them is on Wall Street and has a bit more history and cache, and the neighbors on it are pretty substantive companies. … One of the primary drivers of this listing is, as we are expanding globally, having U.S. institutional investors helps. I think the investment community has to drop the pot jokes and talk about the investment grade opportunity.” – Linton to Bloomberg
The company currently trades on the Toronto Stock Exchange under the symbol WEED. Linton said the company expects to list on the NYSE under the CGC symbol before the end of the month.
A lawsuit by a would-be medical cannabis dispensary could delay sales in New Orleans, Louisiana. According to a WVUEreport, RX Greenhouse has sued the state Board of Pharmacy over their decision to give the city contract to H&W Drug Store, which was ranked fourth – RX Greenhouse was ranked first.
H&W has been in business in New Orleans for 50 years while the owner of RX Greenhouse is based in Maryland. The lawsuit contends that the Pharmacy Board “improperly issued a medical marijuana license” to an “unqualified” license holder. They claim that the decision does not just effect RX Greenhouse but also the medical cannabis patients of New Orleans. The suit seeks to have the decision vacated.
There are just 10 medical cannabis dispensary licenses for the entire state. Alex Onstott, attorney for RX Greenhouse, said the city should restart the application process.
“It doesn’t pass the smell test. We need to know if you have a rationality for doing this. We don’t see one, and if there wasn’t, then that decision should be vacated.” – Onstott to WVUE
Medical cannabis sales are expected to commence in fall 2018. Smokable products are not allowed under Louisiana‘s state regime. Patients with cancer, HIV/AIDS, multiple sclerosis, muscular dystrophy, Crohn’s disease, cachexia, and epilepsy are able to register for medical cannabis use.
The New York State Democratic Party plans to pass a resolution at its May 23-24 convention to support cannabis legalization, according to a draft of the documents obtained by the New York Post. The document indicates the party wants to highlight the reforms during the convention.
Cuomo, the de facto leader of the New York Democrats, has only recently appeared to soften on his cannabis position after years of calling it a gateway drug. Last month, during a campaign stop in Brooklyn, he admitted that “the situation has changed dramatically” on legal cannabis.
“You have states that have legalized it now…. It is no longer a question of legal or illegal. It’s legal in Massachusetts. It may be legal in New Jersey. Which means for all intents and purposes it’s going to be here anyway.” – Cuomo, Apr. 15 in Brooklyn, via the New York Post
Cuomo’s primary challenger, former “Sex and the City” actress Cynthia Nixon, published a Facebook video four days before Cuomo’s comments in Brooklyn, supporting cannabis legalization as a means to reaching some social justice equity.
“In 2018, in a blue state like New York, marijuana shouldn’t even be an issue. If there was more political courage coming out of Albany we would have done this already. The simple truth is: for white people the use of marijuana has effectively been legal for a long time. Isn’t it time we legalize it for everyone else?” – Nixon in the Apr. 11 video
A Democratic Party insider told the Post that Cuomo “is OK” with adding legalization to the party agenda for approval.
New York lawmakers are expected to release a Cuomo-backed cannabis legalization implementation report sometime before the end of the year.
About 1,500 attended the New England Cannabis Convention’s inaugural show in South Burlington, Vermont, meeting the expectations of organizers and setting the stage for an event next year – when cannabis use and possession will be legal for adults in the state.
“The hype is real,” said Eli Harrington, co-founder of Heady Vermont and one of the event organizers, Saturday on the show floor. Harrington, who also led the panel discussions over two days, noted the event’s variety of attendees – shirts, ties, camo, and flannel – and called the event “hugely important” for the state’s existing hemp producers.
“Everyone has a chance to showcase in a more conventional tradeshow space,” he remarked as the afternoon crowd bustled behind him. “This is phase one – hemp and legal CBD – and phase two is everyone getting ramped up for July 1 and ready to grow.”
Harrington, and his Heady Vermont partner Monica Donovan, laid the groundwork for the convention two years ago – in the meantime organizing a Hemp Fest last September and a series of hemp and CBD farmer’s markets throughout the state – and eyed a relationship with NECANN, who have successfully held conventions in, now, six markets.
Organizer Marc Shephard stands behind the NECANN inaugural Vermont show’s ticket booth.
NECANN CEO and co-founder Marc Shepard called the turnout “fantastic,” noting that vendor space had long been sold out. He compared the interest from the public and vendors as to that of their maiden Massachusetts and Rhode Island shows.
“We try to create a locally-focused conference and one of the main goals is to get that critical mass in a room,” Shepard said between ticket sales. “When we can do an event like this … you get the people on the outside saying ‘this is an industry convention – just like an auto show – this is real business’ and it just helps push toward normalization.”
He called the Vermont show unique because of the state’s already strong hemp and CBD industry; while the Maine shows have more of a homegrow focus and Rhode Island a more medical cannabis focus because “that’s what’s legal right now.
“All of these events are very catered toward each state’s current situation,” he said, “but we can do this event in any state that has, at least, a medical program and get that critical mass.”
While hemp and CBD dominated the show floor, ancillary businesses took the opportunity to stake their claim. Jesse Harper, owner of Vermont Security Systems, said that while he had “a little” hesitation about exhibiting at a cannabis-centric event, he wants to be “ahead of the curve” and position themselves as “the provider” for the state’s cannabis industry. He anticipates he will serve between 50 and 100 canna-business clients within the next two years but admits that “no one really knows” how many businesses will operate in the state’s industry right now because it’s unclear when the legislature will implement a tax-and-regulate regime.
“As a small business we get to pick and choose who we want to do business with – that’s one of the joys of small business ownership,” he said, “and we get along really well with our cannabis clients.”
Hemp plant on display from Humble Roots Horticulture.
Harper said the energy at the convention was “much higher” and “really positive” compared to more traditional home shows.
“People are absolutely here looking for something, there is excitement about what’s next,” he said.
Rob Smith, who with his Maine-based company Atlas Plant Trainer exhibited at the first NECANN in his home state, explained that the inaugural Vermont show was “smaller” and “more hemp-focused” than other shows; noting that he had tried to get a both for the show a month ago but booth space was sold out. He hoped that next year the event would be held in a larger hall in order to provide more booth opportunities because being an exhibitor at the shows are “absolutely critical” to his company’s growth.
“These [cannabis] conventions are a great place for consumers, growers, and enthusiasts to see all sorts of different products and learn from all sorts of different people,” said Smith, the CEO and co-founder.
Will Read, founder of Vermont-based brand development firm CannaPlanners, has attended NECANN shows in Rhode Island, Maine, and Massachusetts and called the Mother’s Day weekend show on-par with Maine’s show. He said that while he, obviously, attends the shows to sell his products and expertise, it’s also an opportunity to touch base with his current clients and other operators, who are rarely in the same room at once.
Will Read speaks with an event attendee at the CannaPlanners booth.
“This event was definitely a nice progression from Hemp Fest,” Read said in front of his booth, which displayed his designs scrolling by on a tablet and products from a few of his clients – including Atlas. “I think the next time this happens it’s going to be twice as big – it just keeps going.”
Read pointed out that many who paid for a Hemp Fest ticket eight months ago were paying for booth space at NECANN. “It shows what the organizers have been doing between each event,” he said.
While surveying the morning traffic, Harrington quipped, “It’s a billion-dollar business, whose billion dollars is it gonna be?” He attributed the quote to Shepard. “And next year we’ll be [a] legal [state] and we’ll be here again supporting that industry, too.”
The Illinois Senate has unanimously approved a bill to allow the state Agricultural Department to license farmers to grow hemp, according to a WANDreport. Currently, only universities can get licensed to grow hemp for research purposes in Illinois. The measure was subsequently approved by the House Agriculture & Conservation Committee and just needs to be approved by the full House before moving to the governor.
The bill includes language to ensure that the “research” requirement of federal law does not limit the commercial sale of industrial hemp products in the state. Industrial hemp is defined under the state law as cannabis plants containing 0.3 percent of THC or less – only West Virginia’s hemp law uses a higher threshold of 1 percent. The state Department of Agriculture is tasked with developing other program rules within 120 days of the bill being signed by the governor.
The House committee vote was also unanimous. The measure currently carries three House sponsors – all Democrats – and the measure was stalled in the chamber last year, according to Chicago Tonight; however, with the overwhelming support in the Senate and the committee, Illinois appears posed to become the 36th state to legalize industrial hemp cultivation.
Arizona Gov. Doug Ducey has signed the bill allowing the state Department of Agriculture to license institutes of higher education, private businesses, and individuals to grow industrial hemp. The measure requires that hemp growers, harvesters, transporters, and processors all obtain a license from the Agricultural Department.
“This bill opens Arizona to the possibility of a new agricultural product. I’m glad to sign a bill that could have a positive economic impact for the state.” – Ducey in a press release
The legislation defines industrial hemp as cannabis plants containing 0.3 percent THC or less which is on par with the majority of other state programs. The Agriculture Department will authorize which seeds program participants will be allowed to use, Capitol Media Servicesreports, and lawmakers earmarked $500,000 a year to police the industry and hire inspectors.
Bill supporter Sen. Sonny Borrelli said farmers could get four cuttings of the crop per year, adding that it uses 90 percent less water than cotton.
Arizona is the 35th state to approve industrial hemp legislation. Last month, Senate Majority Leader Mitch McConnell introduced the Hemp Farming Act of 2018, which would legalize hemp cultivation and processing throughout the U.S.
California has raised $60.9 million in cannabis sales through the first quarter of 2018, after recreational cannabis sales began on Jan 1. The state levies a 15 percent excise tax on recreational purchases along with state and local sales taxes. Medical cannabis sales are exempt from the taxes.
“California’s excise tax on cannabis generated $32 million in revenue for the first quarter of calendar year 2018. The cultivation tax generated $1.6 million, and the sales tax generated $27.3 million in revenue.” – California Department of Tax and Fee Administration in a press release
Lawmakers are considering legislation to temporarily lower the tax rate. The bi-partisan legislation is meant to help the legal cannabis industry compete with the illicit market. That bill, which passed the Committee on Business and Professions this week, would reduce the excise tax from 15 percent to 11 percent and suspend the $148-per-pound tax on cultivation.
California Department of Finance Director Michael Cohen told KQEDthat the cannabis tax revenues were lower than expected. The state had projected $185 million in revenues from the first six months of legal sales.
“We are expecting that to turn over time and ramp up as more people get licensed and as more people get into the system.” – Cohen to KQED
State officials projected revenues of $630 million from cannabis taxes next fiscal year.
Oregon Rep. Earl Blumenauer told canna-business owners that he believes cannabis will be treated like alcohol throughout the U.S. in five years during an appearance at the Cultivation Classic in his home state, Willamette Week reports. He said if lawmakers who support legalizing do their job “it’s game over in two years.”
“If Democrats control the House of Representatives in the first months of the next Congress in 2019, we will be having hearings on de-scheduling.” – Blumenauer, during the Cultivation Classic, via Willamette Week
Blumenauer, a member of the Congressional Cannabis Caucus, also touched on former House Speaker John Boehner’s foray into the industry. Last month, Boehner, a Republican and longtime opponent of cannabis legalization, joined the board of Acreage Holdings. Boehner admitted his “thinking on cannabis has evolved.” Blumenauer said he offered his former opponent a pair of “cannabis-themed” socks to welcome him to the industry.
“I don’t second-guess people’s motives if they’re wiling to evolve. Whether it’s for political expediency, whether it’s that they’ve seen the light, whether they’re fed up with the racial injustice seen in drug laws or if it’s a commercial opportunity.” – Blumenauer, during the Cultivation Classic, via Willamette Week
The Congressional Cannabis Caucus is bi-partisan but only has four seated House members: Blumenauer and fellow Democrat Jared Polis, along with Republicans Dana Rohrabacher and Don Young.
State attorneys in Vermont’s Chittenden and Windsor counties are moving forward with plans to expunge misdemeanor cannabis convictions with “Expungement Days” this month, Vermont Digger reports. In Chittenden County, Expungement Day is being held June 12 at Edward J. Costello Courthouse in Burlington, while Windsor County’s event is planned for June 9 at Vermont Law School in South Royalton.
“During Expungement Day, we will educate community members about how to complete an expungement petition. Though volunteers will not provide legal advice, by the end of the session, participants will have a completed expungement petition ready for filing. The State’s Attorney has agreed to accept the petitions and file them.” – Chittenden County State’s Attorney’s Office, via a Facebook event page
Expungement is not available for felony offenses, and offenders can only apply to have the convictions expunged that were levied in the counties in which they are applying.
“Under Vermont law … once a conviction is expunged, a person may lawfully claim that he or she was never arrested, convicted, or sentenced for the marijuana possession offense. While Vermont affords these protections for expunged offenses, other states and the federal government may treat the effect of the expungement differently.” – Chittenden County State’s Attorney’s Office, via the Facebook event page
Citizens will receive assistance from Robert Sand, a law school professor and director of the Center for Justice Reform, along with Vermont Law School students.
Aurora Cannabis Inc. is set to acquire MedReleaf Corp. in an all-stock deal worth C$3.2 billion. Under the agreement MedReleaf common stock shareholders will receive 3.575 Aurora common shares for each MedReleaf share and upon completion existing Aurora shareholders would own 61 percent of the pro forma company while existing MedReleaf shareholders would own 39 percent.
The combined company would have nine cannabis cultivation facilities in Canada and two in Denmark capable of producing 570,000 kilograms (about 1,256,635 pounds).
“This is a transformational transaction that brings together two pioneering cannabis companies, both committed to high technology, high quality and low cost production, to create a powerful platform for accelerated growth and success on a global scale. Our complementary assets, strategic synergies, and strong market positioning will provide us with critical mass and an excellent product portfolio in preparation for the adult consumer use market in Canada.” – Aurora CEO Terry Booth in a press release
MedReleaf CEO Neil Closner said the deal positions the combined company “to set the global standard for our industry at a pace that will be difficult to match.”
The boards of directors of both companies have unanimously approved the deal. The transaction still requires the approval of at least 66-and-two-thirds percent of MedReleaf shareholders.
B.C. and N.B.-based Zenabis is an ACMPR Licensed Producer of cannabis with its sights set on the global marketplace. While Canada moves forward with the world’s largest nationally-regulated cannabis marketplace, professionals everywhere are preparing for this momentous shift in federal policy.
Zenabis already has production facilities in Delta, British Columbia and Atholville, New Brunswick. Together, they are licensed to hold over 400,000 square feet of production facility space, positioning the company for a comfortable break into the international market.
“We wanted to cover the geography of Canada, but we’re also poised to export product to other global markets,” said Karen Parent, Chief Quality and Compliance Officer for Zenabis.
With several European Union countries like Germany and Italy looking to import pharmaceutical-grade medical cannabis products, the world is watching Canada, where producers have already begun exporting medical marijuana overseas. Zenabis is currently in preparations for obtaining a good manufacturing practice (GMP) certification that would qualify the company for entry into the EU marketplace.
The company has also secured a partnership with United Kingdom-based Isidiol International Inc., through which Zenabis plans to source 3,000 grams of high-quality CBD isolate each month. This deal will provide resources for various R&D projects and has cemented Zenabis’ capability for cross-Atlantic partnerships.
As a privately-owned company, Zenabis is afforded more freedom and maneuverability than many of Canada’s other licensed producers. The company has assembled a diverse and multi-talented team with strengths spanning the startup sector, the pharmaceutical industry, distribution networks, horticulture, and sustainability.
Taking an inside look at the Zenabis cannabis production facilities.
According to Zenabis CEO Kevin Coft:
“Publicly traded cannabis companies are faced with a lot of distractions around generating funds and satisfying short-term obligations to shareholders. We’re using the privately owned model so that we can train our focus on getting everything right for the imminent legalization of recreational cannabis in Canada and the eventual prospect of exporting our products to world markets.”
In the meantime, the company’s business model is focused on cannabis production, research, education, and product development. But John Kondrosky, Chief Operating Officer for Zenabis, explained that one key to the company’s success will be its ability to rapidly scale up to the opportunities presented in both the Canadian and international cannabis markets.
“That’s not simply a matter of increasing production,” Kondrosky said. “It involves careful planning, an unwavering commitment to quality and a relentless focus on execution to ensure that we meet the needs and expectations of our customers with a product we are all proud to put the Zenabis name on.”
Zenabis also has a strong partnership with Kwantlen Polytechnic University, helping educators in KPU’s Cannabis Career Training program create courses based on the needs of the modern cannabis industry.
To learn more, visit Zenabis.com or contact info@zenabis.com.
A Michigan State University Institute for Public Policy and Social Research poll has found 61 percent support for cannabis legalization in the state, with 34 percent opposed and 5 percent undecided. Cannabis legalization was the only issue on the poll with fewer than 15 percent undecided.
Pollsters found support lags among Michiganders 65-and-older. Just 30 percent of that population supported the reforms, while 80 percent of respondents under 30 approved of legalization, along with 62 percent of individuals aged 30 to 64.
“Since the marijuana initiative has a large lead with relatively few undecideds, it appears likely that it will pass.” – MSU economics professor and director of the State of the State Survey Charles Ballard, to MSU Today
This is the third poll this year to find majority support for the cannabis legalization in Michigan. A January poll from Local 4 and the Detroit News found 56.6 percent support, with 36.7 percent opposed and 6.7 percent undecided. A March poll by EPIC-MRA commissioned by Michigan NORML found 61 percent support with 35 percent opposed.
Lawmakers know the initiative is very likely to pass and have considered tying a legalization bill to another measure cutting the state’s income tax. Passing the bill via the Legislature would give them more control over the structure and implementation of the industry; however, House Speaker Tom Leonard, a Republican, told WEMUthat he doesn’t anticipate lawmakers moving on the issue. The Legislature has until June 16 to take up the issue or it will go to the voters in November.
Michigan regulators have announced that CBD products – even those derived exclusively from industrial hemp – are subject to regulation under the Michigan Medical Marihuana Act and the Medical Marihuana Facilities Licensing Act.
“Cannabidiol (CBD) comes from the marihuana plant. Based on the statutory definitions related to “marihuana” found in the Michigan Public Health Code (Act 368 of 1978), the [MMMA], and the [MMFLA], any extracts of marihuana or extracts of the marihuana plant will continue to be treated as marihuana. The possession, purchase, or sale of marihuana or any marihuana product – including CBD – must be done in compliance with the MMMA and MMFLA.” – Michigan Licensing and Regulatory Affairs May 10 Advisory Bulletin
Other products derived from industrial hemp are not subject to the MMMA and MMFLA, the bulletin says. However, it does note that the state’s Industrial Hemp Research Act “limits industrial hemp to cultivation or research and does not authorize its sale or transfer.”
“Any possession or transfer of industrial hemp – or any product claimed to be “hemp”-related – must be done in compliance with Michigan’s Industrial Hemp Research Act.” – LARA in the May 10 bulletin
The IHRA only authorizes the Department of Agriculture and Rural Development to license colleges and universities to grow hemp for research purposes. The IHRA defines hemp as “the fiber and the seed part of the Cannabis sativa L. plant.”
Ohio Attorney General Mike DeWine has certified that the language for a proposed recreational cannabis ballot initiative is “fair and truthful” – the first step toward putting the issue on the ballot, according to a Cleveland.comreport. The proposal moves next to the Ohio Ballot Board which will determine whether the measure is one or several ballot issues. If approved by the board, advocates would need to collect 305,591 valid signatures to put the issue to voters.
The proposal, which would amend the state constitution, is sponsored by Ohio Families for Change. DeWine had rejected the group’s initial proposal because the petition summary didn’t match the proposal language.
The organization had aimed to put the issue to voters this November, according to Ohio Families for Change spokesman Jonathan Varner, but likely won’t meet the July 4 deadline and will instead focus on the November 2019 election.
“This is unfortunate, because people are being arrested daily for activity that simply shouldn’t be criminal, only to support a black-market system. We’re confident that when voters have the opportunity to vote on this issue, they will overwhelmingly approve it.” – Varner to Cleveland.com
In 2015, Ohio voters rejected a constitutional amendment to legalize cannabis for adults. That measure was opposed by many activists because it would have given campaign investors a monopoly on sales.
West Virginia Treasurer John Perdue has sent a letter to Gov. Jim Justice outlining two plans to provide the state’s medical canna-businesses access to financial services. The first option is a “loop” system; the second a state-owned bank.
The “loop system” proposal would provide two options or a combination of both. A “closed-loop” which would allow payments within a network of individuals or entities that have accounts in the system, and an “open-loop” system that would provide payment services that would also be able to be used outside of the system. Both systems would be monitored by the state.
“This type of third-party payment service would provide a means for establishing accounts by the entities associated with medical cannabis; maintain strong security and fraud prevention practices and controls; provide robust reporting, including online access and integration with the Bureau of Public Health and State of West Virginia systems; and provide various other services, including armed car/courier services.” – Perdue in the letter to Justice
The state-owned bank would be run by the Treasurer’s Office. According to the Charleston Gazette-Mailreport, the specifics of the bank would be determined by legislation. Diana Stout, general counsel for Perdue, said the bank could operate under a charter tailored for the medical cannabis industry.
West Virginia’s medical cannabis program is expected to launch next year.
According to Colorado state Department of Revenue data, cannabis sales in March reached $105,945,278 — up from $85,869,215 in February and $88,729,914 in January. In the first three months of 2018, cannabis sales in the state have totaled $365,686,695.
Denver County led the state in sales: the county totaled $34,757,371 in March. Arapahoe County, whose largest city is Aurora, ranked second with $9,956,392 in sales; followed by Boulder County ($7,245,363); Adams County ($6,602,994); and Larimer County ($5,839,729).
Medical cannabis sales reached $29,238,678 in March, up from $26,640,302 in February, but down slightly from the $29,263,308 in January.
Monthly sales in the state have surpassed the monthly figures from 2017, which were $92,912,147 in March; $75,665,966 in February; and $76,018,423 in January.
However, medical sales in 2017 were significantly higher than this year: $37,451,683 in March; $31,074,413 in February; and $31,712,608 in January.
Since the program’s launch in January 2014, cannabis sales in Colorado have totaled $4,859,707,381. The state applies its 2.9 percent sales tax to both medical and recreational cannabis sales along with a 15 percent tax on retail sales. Municipalities are also allowed to set their own tax rates which range from 0.01 percent to 7.25 percent.
The Massachusetts Cannabis Control Commission mistakenly approved 10 priority certification retail cannabis applications that were supposed to be denied, according to a State House News Servicereport. The CCC had approved 146 such applications but Executive Director Shawn Collins admitted that 10 of those were approved in error.
“Upon further review, we’ve identified a number of applicants that had previously been included in a batch for approval that, based on a transcription error, should have been in fact in a batch for denial. It is unfortunate and we will absolutely be in touch with each of those applicants to identify this error that did occur.” – Collins to the CCC via State House News
CCC Chairman Steve Hoffman said that staff actually made the right call but the denial recommendations “ended up just getting put in the wrong column.” The board voted to rescind those 10 approvals. Hoffman indicated that the CCC would “try everything [they] can to rectify the error.”
“If they do get denied we haven’t taken away anything that they should have gotten, but we still feel badly about the mistake and we’ll do what we can to rectify and to make it up.” – Hoffman to State House News
Hoffman said the body would change the way it reviews applications to prevent future errors.
In order to address ongoing issues with Leaf Data Systems (LDS) — Washington state’s traceability database, built by MJ Freeway — the Washington State Liquor Control Board (LCB) is in negotiations with Gartner Consulting to do an independent evaluation of the LDS’ implementation. Already holding a contract with the LCB, the firm will be asked to evaluate the software development process, determine the source of issues that licensees in the field have been experiencing, and develop recommendations and an action plan to mitigate identified deficiencies and the problems’ root causes.
The cost of the assessment is unknown at this time but will come out of the LCB’s budget, according to a spokesperson for the agency.
Traceability recap
The ongoing issues with Washington‘s traceability system began last year when the LCB announced that the contract with longtime vendor BioTrackTHC would not be renewed. After the first choice, Franwell, dropped out of the ensuing contract bid, the LCB turned to MJ Freeway to build and roll out the new database.
When Franwell dropped out, the LDS launch date was extended to January 1, 2018. During this time, the LCB offered a contingency plan to help businesses track their inventory. The deadline was later extended to February 1. Upon going live, however, evidence emerged that the system had been hacked, which delayed some cannabis deliveries.
By March 31, all cannabis businesses were required to have their data uploaded into Leaf Data Systems, but problems persist, prompting the LCB to seek an outside consulting firm.
Illinois-based Cresco Labshas won a Healthcare Marketing Report National Healthcare Advertising Award – the first cannabis company to receive the honor. The company won the Silver Award for their education-based “State of Relief” campaign. Cresco said the goal of the poster campaign was “to try and normalize the cannabis industry for those seeking relief with an alternative form of medicine in Illinois.”
The winning design featured an open-faced peanut butter and jelly sandwich shaped like Illinois along with a caption that reads “Medical cannabis offers a new way for Illinois residents to seek relief from symptoms of over 35 conditions, like diminished appetite.” The poster was designed by Tom, Dick & Harry Creative Company.
“We wanted people to see medical cannabis as just another form of medicine in Illinois, without the traditional stereotypes that come with it. Our goal was to create an eye-catching campaign appealing to a mainstream audience that didn’t scream ‘marijuana’. We created the new messaging for the regulated cannabis industry – it’s professional, it’s regulated…it’s normal.” – Cresco Labs CEO Charlie Bachtell in a press release
Healthcare Marketing Report received over 4,000 entries for consideration. Its national panel of judges made their picks based on creativity, quality, message effectiveness, consumer appeal, graphic design and overall impact.
CROP Infrastructure Corp. (CSE: CROP) is a North American cannabis enterprise with a unique plan for capitalizing on the continent’s rapidly evolving cannabis landscape. The company, operating as a lender and landowner, recently announced the construction of 12 state-of-the-art greenhouse facilities in Grant County, Washington state. These facilities will be made available to qualified cannabis licensees.
In the cannabis industry, traditional lending to build business infrastructure is either limited or nonexistent due to the plant’s ongoing federal prohibition. Particularly in the U.S., where most state markets are still years behind Canada, the industry is poised for enormous growth — and CROP’s flagship Grant County facilities will establish advanced infrastructure for 44,000 square feet of cannabis canopy.
Blueprints for CROP Infrastructure Corp.’s flagship greenhouse facilities.
Aptly named “The Dozen,” this project will benefit from some of the cheapest power in North America: at just $0.02/kwh, CROP’s tenant grower could produce cannabis product at approximately $200 per lb USD — or just $0.44 per gram. When all 44,000 square feet of production space is operating at full capacity, the tenant grower will have the capacity to manufacture approximately 24,000 lbs per year. The Dozen is also located near major trucking routes in Washington, which will simplify deliveries to the tenant grower’s dispensary partners.
All capital deployed by CROP will be repatriated to the company through land management, licensing, and branding fees paid by the tenant grower. Since CROP is taking the initial risk of deploying capital, hiring construction crews, and purchasing materials, the company seeks a 60% preferential payback from the tenant grower via land management, leasing, licensing, and branding fees. Once CROP has recouped its investment in a facility, the company will retain just 30%.
CROP Infrastructure Corp. fills a valuable role for the cannabis market by providing the means for growers to maximize their potential. CROP owns land, infrastructure, equipment, and brands — which, combined, will lead to maximum value for tenant growers and investors alike. Visit cropcorp.com to learn more about CROP’s blueprint for success in the world’s fastest-growing industry.
Salt Lake County District Attorney Sim Gill has indicated he will vote in favor of the ballot initiative to legalize medical cannabis in Utah, the Deseret Newsreports. The support comes as Gov. Gary Herbert and the Utah Medical Association strongly oppose the reforms.
“This is not about recreational marijuana, that is not what I support, but I will advocate for not criminalizing the conduct of parents, patients and family members for an act of compassion.” – Gill, during a Tuesday press conference, via Deseret News
Gill’s support also breaks from the state’s law enforcement community. The Department of Public Safety and Drug Enforcement Administration Salt Lake City Metro Narcotics Task Force have each come out in opposition of the reforms. The task force is also listed as an associate of Drug Safe Utah, a political action committee formed last month to directly oppose the ballot initiative.
“As a public prosecutor the last thing I want to be doing is be in the middle of a conversation between a patient and their physician. They should not have to worry about the specter of criminal prosecution for an act of compassion.” – Gill, during the press conference
He did warn that some citizens “living in other jurisdictions may not get the same benefit” and there are probably just “one or two” other Utah district attorneys who support the reforms.
The National Football League has denied free agent running back Mike James an exemption for using cannabis as a painkiller, NBC Sportsreports. James, a 2013 sixth-round Tampa Bay Buccaneers draft pick, applied for a therapeutic exemption to use cannabis – which is banned by the league – but officials turned him down.
James is not currently signed to an NFL team but free agents are still subject to league drug tests.
“I am hopeful that I’ll be able to keep playing football. It is a game that I love very dearly. I know right now I’m doing something that makes some people uncomfortable, and that I’m going against the establishment to push for a change in the way they look at this medicine. I know there’s a greater purpose here for a lot of guys in this league who I consider family members.” – James to NBC Sports
According to CNN James was the first active NFL player to file for a therapeutic exemption to use cannabis. Dr. Sue Sisley, a board member of Doctors for Cannabis Regulation, helped James fill out the form after he tested positive for cannabis in October as part of the league’s drug testing protocol.
“Mike’s case is such a perfect example of why cannabis needs to be made available, because he’s really not a candidate for opioids. So this is a safe alternative for him.” – Sisley to CNN
B.C. and N.B.-based 
