Adult-Use Legalization Question Expected for North Dakota’s November Ballot

7/10/2018

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North Dakota advocates have successfully submitted enough signatures in favor of adult-use cannabis legalization to put the issue on November’s ballot, the Bismarck Tribune reports.

Advocates submitted some 18,700 signatures to the Secretary of State’s office on Monday; they needed a total of 13,452 signatures to put the issue before voters.

“The measure legalizes the use, sale, possession, and distribution of marijuana for anyone 21 years or older. For anyone under the age of 21, the law creates a new specific subset of non-felony penalties. Additionally, the law legalizes “paraphernalia” for marijuana exclusively. Finally, records are expunged for anyone that followed the new law even if it occurred in the past, except for cases of someone being under the age of 21.” — Excerpt from the Legalize ND website

The signatures were collected by 100 volunteers over the course of six months. The signatures must now be validated, which the Secretary of State’s office says could take up to 35 days, after which the actual ballot initiative will be drafted.

“Not a single penny was spent on petitioning and gathering, because we wanted this to be the will of the people, not the will of some big company out in Lord knows where. This is, primarily, a grassroots effort.” — Dave Owen, chairperson of the ND Legalization Initiative, to the Bismarck Tribune

Nine other states plus Washington D.C. have already passed some form of adult-use cannabis legalization.

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Michigan Adds 11 Qualifying Conditions to MMJ Program

7/10/2018

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The Michigan Department of Licensing and Regulatory Affairs added 11 more qualifying conditions to the state’s medical cannabis list on Monday, WZZM 13 reports. The additions mean that Michigan‘s list of qualifying conditions now contains 22 ailments for which doctors can recommend cannabis.

The Department of Licensing’s director Shelly Edgerton approved the 11 new conditions, but also denied the addition of 11 others. The medical cannabis program expansions involved hearings with public testimony regarding the proposed conditions and investigations into the latest research for each condition.

“With the changes in state law to include marijuana-infused products, and the advancement of marijuana research, and upon the recommendation of the panel members, I’ve added these eleven conditions to the approved list.” — Shelly Edgerton, via WZZM 13

The new conditions added to the list: arthritis, autism, chronic pain, colitis, inflammatory bowel disease, obsessive-compulsive disorder, Parkinson’s, Rheumatoid arthritis, spinal cord injury, Tourette’s syndrome and ulcerative colitis.

The conditions denied: anxiety, asthma, brain injury, depression, diabetes, gastric ulcer, non-severe and non-chronic pain, organ transplant, panic attacks, schizophrenia, social anxiety disorder.

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Hawaii Issues First Industrial Hemp Licenses

7/10/2018

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Hawaii’s Department of Agriculture licensed three separate farmers in June to grow hemp under the state’s pilot industrial hemp program, Maui Now reports. One grower is located on Kauai and the other two are located on Hawaii Island.

The industrial hemp licenses last for just two years and licensees are required to pay annual fees of $250 plus a $2-per-acre assessment charge. Growers are allowed to sell the hemp they harvest but must produce regular reports on the planting, harvesting, and distribution of their crops. 

“Hawaii’s first licensed hemp growers will help to demonstrate the real potential of the industrial hemp industry. We look forward to the entrepreneurial spirit that will help to invigorate and strengthen agriculture across the state.” — Gov. David Ige, via Hawaii News Now

The pilot hemp program, which officially opened in April 2018, has so far received applications from ten interested individuals. Officials with the Agriculture Department are still reviewing the remaining applications and will continue to license qualified partners as their applications are approved. 

“The potential here in Hawaii is just enormous when you look at 25,000 different products … made from this miracle plant.” — State Sen. Mike Gabbard, in the report

Officials faced difficulties trying to acquire seeds for the program. By working with federal and state drug enforcement agencies, however, the Department of Agriculture was eventually able to source seeds of the hemp varietal Yuma from China, which experts predict will perform well in Hawaii‘s tropical climate.

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Caribbean Community of Nations to Consider Legalizing Cannabis

7/09/2018

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The Caribbean Community (CARICOM) of nations have embraced a report by their own regional commission on cannabis and intend to rethink the legal status of cannabis, Tom Angell reports for Marijuana Moment.

In a report covering the latest session of CARICOM, the organization decided:

Heads of Government recognised that the current classification of marijuana as an illicit drug presented a challenge in the conduct of research to fully understand and ascertain the medicinal benefits to be derived.

They agreed that action should be taken at the national level by the relevant authorities to review marijuana’s current status with a view to reclassification taking into account all international obligations.

The chairperson for CARICOM’s regional cannabis commission, Prof. Rose-Marie Belle Antoine, took a clear stance on rescheduling cannabis while releasing her commission’s report, The Guardian of Trinidad and Tobago reports.

In the report, Prof. Antoine indicated the correct course was, “a public health and rights approach instead of this criminal law approach where people are criminalised.”

“The medical and scientific evidence is clear that marijuana has substantial value. Thousands of people are being imprisoned especially the most vulnerable and most marginalised in the region.” — Prof. Rose-Marie Belle Antoine, Chair of CARICOM’s Regional Marijuana Commission, via The Guardian

Prof. Antoine’s report also indicates that changing the plant’s legal status is necessary, but not removing all constraints on its use. The members of CARICOM have agreed to study cannabis’ current status in law as indicated by the cannabis commission’s report.

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South Carolina’s Industrial Hemp Expansions Taking Shape

7/09/2018

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The South Carolina Department of Agriculture announced it has received 162 industrial hemp applications for 2019, according to a WYFF report. The state is doubling the number of industrial hemp farmers from 20 to 40 — and doubling their allowed acreage from 20 acres to 40 acres — for next year’s harvest.

“Expanding the Industrial Hemp Pilot Program will give us a greater opportunity to assess where and how this crop grows best in South Carolina. Ultimately, industrial hemp is about crop diversity, new business for our rural farmers and economic development in South Carolina.” — Hugh Weathers, South Carolina Commissioner of Agriculture, via WYFF

Farmers possessing hemp licenses from 2018 must re-apply for 2019. Applicants also must meet a series of qualifications, released earlier this year.

South Carolina farmer David Builick, who was issued a permit in 2018, is reapplying for 2019. Builick initially decided to grow industrial hemp after becoming aware of the medicinal needs of a friend’s daughter, who has a condition requiring CBD oil. Builick is also aware of the commercial demand for a variety of hemp products.

“Volvo, BMW, those guys, their dashboards and side panels are all made from industrial hemp. It’s brought in from overseas but we don’t have enough acreage to grow that here to be a competitor for manufacturers in our own state.” — David Builick, in an interview with WYFF

Farmers approved for 2019 permits will be named by the state in September.

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Judge Drops Church’s Case Defending Cannabis Use as Sacrament

7/09/2018

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The Indianapolis-based First Church of Cannabis saw its 3-year-old case seeking protections for cannabis use under the Religious Freedom Restoration Act (RFRA) dismissed on Friday, the IndyStar reports.

Bill Levin, the church’s founder and spiritual leader, wrote on Friday to his Facebook followers, “It’s far from over. We are just getting started.” An attorney for the church has previously said the group would appeal if the case was not won.

Judge Sheryl Lynch wrote in her order to dismiss the case that city and state law enforcement officers should not be expected to treat the church’s patrons differently from the rest of the public.

“The undisputed evidence demonstrates that permitting a religious exemption to laws that prohibit the use and possession of marijuana would hinder drug enforcement efforts statewide and negatively impact public health and safety…”

“It is compelling and appropriate to treat the illicit drug market in a unitary way.” — Judge Sheryl Lynch, in her dismissal of the First Church of Cannabis’ case

Meanwhile, the church — which is recognized as a non-profit corporation by the Internal Revenue Service (IRS) — argued that the government can’t cherry-pick which religious beliefs it chooses to protect.

“Whether one agrees with the beliefs of the church is irrelevant. The church is a religious organization engaged in exercise of religion.” — Bill Levin, during the trial

Indiana Attorney General Curtis Hill called the church “a pro-marijuana political crusade that turned into a legal stunt.”

“Indiana’s laws against the possession, sale and use of marijuana protect the health, safety and well-being of Hoosiers statewide. When the state has justifiable and compelling interests at stake, no one can evade the law simply by describing their illegal conduct as an exercise of religious faith.” — Indiana Attorney General Curtis Hill, via IndyStar

Levin replied to Hill’s comments online, writing that, “Cannabis is safer than Curtis Hill.”

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Oklahoma Officials Release Rules Proposal for State’s Medical Marijuana Authority

7/09/2018

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The Oklahoma State Department of Health released the final draft of rules outlining the state’s newly established Medical Marijuana Authority program on Sunday, according to a KOCO 5 News report. The move was mandated by voters when they approved a ballot initiative last month legalizing the medical use of cannabis.

A rough draft of the rules was first released for public comment on June 26.

“Those public comments, as well as comments from other state agency partners and other interested groups, have been carefully reviewed and considered from a legal perspective with the overarching responsibility of the Department of Health to promote and protect public health while implementing the will of the people as demonstrated in the passage of State Question 788.” — Statement included with the updated rules, via KOCO 5 News

The proposal includes rules that dictate who can make recommendations and write prescriptions for medical cannabis, who is allowed access to the program, and other restrictions such as capping THC count for cannabis products at 12 percent and requiring pregnancy tests for women of “childbearing years” before they can access the program.

A meeting on Tuesday — scheduled for 11:00 a.m. in Room 1102 at the Oklahoma State Department of Health Building — may be the last chance for public comment on the proposal, which will be submitted for review and possible adoption later this week.

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Canadian Cannabis Workers Targeted By U.S. Border Patrol

7/06/2018

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The U.S. Border Patrol has been giving lifetime bans at the border to those associated with Canada’s legal cannabis industry, according to The Star Vancouver. Because the border is under federal jurisdiction — even in states like Washington that have legalized cannabis — Border Patrol agents are required to obey U.S. federal requirements and issue lifetime bans to anyone who profits from cannabis.

One doesn’t need to handle cannabis plants directly or even have ever used cannabis — agricultural equipment manufacturers in the cannabis industry have been targeted as well. Jay Evans, CEO of Canadian processing equipment manufacturer Keirton Inc., was briefly detained and given a lifetime ban while crossing into the U.S. to begin the process of designing a new cannabis processing machine.

“We had not yet designed the product, we had not yet marketed the product and we’d not yet sold the product.” — Jay Evans, in an interview with The Star Vancouver

However, Evans doesn’t blame the border patrol; instead, Evans blames the U.S. Department of Justice and Jeff Sessions‘ paranoid anti-cannabis stance. The feds have not gone light on enforcing drug trafficking laws and still prevent banks and other financial institutions from dealing with the industry.

According to the report, the best thing to do for those detained by border patrol because of their work in the cannabis industry is to not admit anything. Lying is also grounds for a lifetime ban, so the best strategy is to neither confirm nor deny their questions and simply rescind the request to enter the United States.

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California Cannabis Festivals Struggling Under New Rules

7/06/2018

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According to an East Bay Times report, California’s new cannabis rules are causing difficulties for cannabis festivals.

During the first year of adult-use legalization, promoters had planned to switch away from the loose, medical industry’s system that they had been using (where every attendee had to get or already have a doctor’s recommendation). However, many California jurisdictions have been denying event permits, making what should be an easy switch to a completely legal market much more difficult for event organizers.

California’s new laws limit festivals to fairground venues authorized by the Department of Food and Agriculture. On top of that, they need permission not only from the venue owner or manager but also an annual license from the state and approval from the city or county where the event will be held. These requirements are proving to be too stringent for many festivals.

Approximately 10 fairground venues in California on the state’s list are in cities or counties that permit adult-use cannabis sales. In two of those 10, the local authorities have chosen to disallow cannabis events. That leaves eight venues in all of California where it would be possible to have a cannabis festival. Southern California had no events so far in 2018 and none are planned for the rest of the year. Northern California has only two licensed festivals, one in Sacramento and one, the famed Emerald Cup, in Santa Rosa.

These remaining festivals are working hard to stay compliant with the state’s new rules.

“It’s costing us a lot of money, but it’s going to come back in the long run. We’re going to really be teaching them how it should be done.” — Tim Blake, Emerald Cup Founder, via the East Bay Times

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Saskatchewan Establishes Fines for Cannabis Crimes

7/06/2018

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Authorities in Saskatchewan, Canada have established a provincial fine structure for cannabis offenses for after federal legalization takes place in October. According to a Global News report, the fines will range from between $200 and $2,250 depending on the severity of the offense. 

Justice Minister Don Morgan said the goal was to create “an appropriate disincentive for certain kinds of conduct” but not to go completely overboard on cannabis crackdowns.

“One of the major considerations when we went into this was trying to keep marijuana out of schools and out of the hands of children. Bringing marijuana into a school area we knew would be a significant issue so we wanted to have a large disincentive there.” — Justice Minister Don Morgan, in an interview with Global News

The following are the crimes (and their fines) targeted at cannabis consumers:

  • Consumption of cannabis in public — $200
  • Consumption of cannabis on school grounds or at a child care facility — $1,000
  • Possessing or consuming cannabis in a campground, when a prohibition is in effect — $200
  • Purchasing cannabis from a jurisdiction outside of Saskatchewan — $300
  • Possessing or consuming cannabis in a vehicle — $300
  • Possessing more than 30 grams of dried cannabis in public — $200

The following fines apply to commercial cannabis entities:

  • Selling, giving or distributing to a minor — $2,250
  • Selling or distributing to a person who appears to be intoxicated — $2,250
  • Purchasing from a non-authorized source — $300
  • Consuming or permitting consumption while being transported — $2,250

Notably, the fines for commercial cannabis entities are higher than the fines alcohol companies face for the same offenses (except for the $300 fine for purchasing from a non-authorized source).

“Cannabis is new. We’re worried about what the effect might be, so we’re starting with a higher penalty structure. Alcohol is something that’s been around for as long as the province has been in existence, and it’s something where people have a greater understanding and acceptance, so we want to have a greater disincentive, at least at the beginning.” — Justice Minister Don Morgan, in the report

The rules will take effect following the October 17 launch of Canada’s federal adult-use marketplace.

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Mexico’s President-Elect Favors Drug Decriminalization

7/05/2018

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Mexico’s general elections were held on Sunday, July 1 and the emerging victor for the country’s presidential run, Andrés Manuel López Obrador, is likely to push for criminal drug law reforms, according to a teleSUR report.

President-elect López Obrador, who is a former mayor of Mexico City, is already considering decriminalizing recreational cannabis use and regulating the country’s illegal opium trade, said senior aide and former Supreme Court judge Olga Sánchez Cordero. According to Cordero, it doesn’t make sense to continue enforcing drug prohibition when close to a dozen U.S. states plus Canada have chosen to legalize cannabis.

“What are we thinking? Tell me. Killing ourselves. Really, keep on killing when… North America is decriminalizing?” — Olga Sánchez Cordero, in an interview with W Radio

Medical cannabis was legalized in Mexico in 2017 and, in 2016, current President Enrique Peña Nieto spoke in favor of decriminalizing the possession of up to an ounce of cannabis flower. Mexico, however, continues to experience extreme violence and political corruption resulted from drug prohibition, largely carried out by the country’s infamous drug cartels.

Mr. López Obrador upset Mexico’s political paradigm with a landslide victory on Sunday, wherein more than half the country’s voters supported the 64-year-old leftist. His victory is made even more historic, however, because Mexico’s government will be governed by a single party for the first time in 89 years.

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Alberta Chooses Cannabis Producers to Serve Its Adult-Use Market

7/05/2018

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The Alberta Gaming, Liquor & Cannabis Commission (AGLC) announced the 13 licensed producers who will serve the province’s adult-use marketplace when cannabis becomes federally legal in Canada on October 17, the Calgary Herald reports.

Only two of the companies, Aurora Cannabis and Canopy Growth, actually have production facilities located in Alberta. The other 11 companies are:

  • 7 Acres
  • ABCann Global
  • Aphria Inc.
  • CannTrust
  • Emblem Cannabis
  • Maricann Group Inc.
  • MedReleaf Corp.
  • Starseed Medicinal Inc.
  • UP Cannabis Inc.
  • Weed MD
  • Organigram

All of the companies except New Brunswick-based Organigram operate primarily out of Ontario.

“The AGLC is committed to providing the Alberta market with access to federally regulated cannabis in a safe and fiscally responsible manner while helping to shrink the illicit market. We are confident that those we are working with will help us fulfil our responsibilities to Albertans.” — Niaz Nejad, CEO and VP for the Alberta Gaming, Liquor & Cannabis Commission, in a statement

AGLC said that it received pitches from 31 different companies and plans to sanction more licensed producers as necessary, but in the future will focus on Alberta-based companies. The province plans to open up to 700 retail cannabis locations and will also be distributing cannabis products via the official AGLC website AlbertaCannabis.org. 

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Efforts to Legalize Adult-Use Cannabis Progress in Oklahoma

7/05/2018

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Hot on the heels of Oklahoma‘s successful medical cannabis vote, advocates in the state are collecting signatures to put adult-use legalization on the November ballot, Oklahoma’s News 4 reports.

The initiative, State Question 797, would allow adults who are 21 or older to possess, use, grow, process, and sell cannabis for recreational purposes.

Advocates with ‘Green the Vote’ say they have collected 64,000 of the necessary 124,000 signatures to get SQ 797 on the ballot. The group hopes to deliver the necessary signatures to the state Capitol by August 8.

“We feel we are on track but would like to really ramp it up to get this done with overwhelming numbers.” — Isaac Caviness, President of Green The Vote, in an interview with KJRH

Last month, Oklahoma became the 30th U.S. state to legalize medical cannabis when voters overwhelmingly approved SQ 788, which establishes a program wherein medical doctors — not politicians — determine when patients “qualify” to use medical cannabis.

Opponents of medical marijuana had lambasted SQ 788 as being too loosely regulated and too close to adult-use legalization; Oklahomans did not seem to mind that comparison, however, and now advocates may get to test voters with even more progressive cannabis reforms.

Editor’s note: A previous version of this article incorrectly listed the adult-use ballot initiative as SQ 979 instead of SQ 797.

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Texas GOP Endorses Cannabis Decriminalization, Rescheduling, & Industrial Hemp

7/03/2018

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The Republican Party of Texas officially endorsed the decriminalization of cannabis last month. Party leaders also called on the federal government to reschedule cannabis from Schedule I to Schedule II under the Controlled Substances Act and to legalize industrial hemp.

“Civil Penalty: We support a change in the law to make it a civil, and not a criminal, offense for legal adults only to possess one ounce or less of marijuana for personal use, punishable by a fine of up to $100, but without jail time. …

“Cannabis Classification: Congress should remove cannabis from the list of Schedule 1 and move to Schedule 2. …

“Hemp: We recognize industrial hemp as a valuable agricultural commodity. We urge the Texas Legislature to pass legislation allowing cultivation, manufacture, and sale of industrial hemp and hemp products.” — Texas GOP party platform excerpts

The Texas GOP also called on state lawmakers to expand the state’s 2015 Compassionate Use Act and give doctors the right to determine the best uses and scenarios for medical cannabis.

These are yet further signs that cannabis is becoming an increasingly mainstream issue and, following the Texas GOP announcements, 2018 appears to be shaping out as yet another banner year for cannabis policy.

“Texas Republicans, like the majority of Americans, are ready to see more sensible marijuana policies enacted. Our state wastes valuable criminal justice resources arresting between 60,000-70,000 Texans annually. Delegates took a stand this week for a better approach.” — Heather Fazio, coalition coordinator for Texans for Responsible Marijuana Policy, in a Forbes interview

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Cleveland, Ohio Forms Adult-Use Cannabis Council

7/03/2018

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Cleveland, Ohio City Councilman Blaine Griffin has organized a working group on cannabis policy for the city, News 5 Cleveland reports. The group was created to bring together law enforcement and city departments to begin the bureaucratic process of transition to legal cannabis.

“We believe it’s time for us to start having that discussion and seeing if it might be the right thing to do in the city of Cleveland.” — Blaine Griffin, in the report

12 of Cleveland’s 17 council members signed the resolution to form the working group. Griffin said there are property zoning issues to resolve and other rules the city would want to make to ensure the new industry is productive for all involved.

“We need to get out of the dark ages with this.” — Blaine Griffin, via News 5

Ohio itself still needs to legalize adult-use cannabis via a ballot initiative or legislative action. The state’s medical cannabis program is set to launch in September but will face delays as licensed cultivators are just now managing to get plants in the ground. Griffin wants to start thinking ahead of that for the city of Cleveland, beginning the adult-use process before the state even deploys its medical program.

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Major Beer Companies Test Cannabis Market Waters

7/03/2018

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Several large beer corporations have begun experiments in the cannabis space, according to a Forbes report. Market analysts predict a greater battle for each consumer dollar as cannabis becomes legalized in more U.S. states and eventually the continent and world. Major beer companies are already attempting to get a slice of that pie with cannabis-infused beers and other beverages.

With Canada’s legalization coming soon, most of the pilot beverages are being researched and launched in the northern nation. Constellation Brands, owners of the Corona and Modelo brands, were the earliest of the beer behemoths to begin investing in the new market. Molson Coors was next, with CEO Mark Hunter announcing that he had “assembled a team in Canada to actively explore the risks and opportunities of entering the cannabis space in that market.”

In the U.S., where cannabis prohibition is still ongoing, Heineken-owned Lagunitas Brewing Company has created a cannabis-infused sparkling water called “Hi-Fi Hops.” Lagunitas aims to distribute throughout California. The market for cannabis beverages is expected to grow stronger as many beginner cannabis consumers abandon smoking for healthier cannabis delivery methods.

While many other large beer companies are hesitant to experiment as much as Lagunitas, that may be changing. Constellation Brands CEO Rob Sands has told investors that he has a team working on cannabis brands for the “world market, including the U.S.”

“We’re looking closely at precisely that issue and making sure that we understand what we can do and what we can’t do. We’re looking at it pretty carefully and if we see that opportunity within the confines of what we can legally do, we will do it.” — Rob Sands, in the Forbes report

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The fat cola of a tall, outdoor cannabis plant.

Australian Study: Medical Cannabis Does Not Relieve Chronic Pain

7/03/2018

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A major cannabis study conducted in Australia has found that medical cannabis does almost nothing to relieve chronic pain among users, despite overwhelming anecdotal evidence of the contrary.

The study, published in Lancet Public Health, featured more than 1,500 patients particip[ating in a different study investigating prescription opioid medications. Some 24 percent of those patients also used cannabis and reported their experiences.

“Participants were asked about lifetime and past year chronic pain conditions, duration of chronic non-cancer pain, pain self-efficacy, whether pain was neuropathic, lifetime and past 12-month cannabis use, number of days cannabis was used in the past month, and current depression and generalised anxiety disorder.” — Study authors, via Lancet Public Health

Researchers found that cannabis does not cut pain or lower a patient’s opioid intake. In fact, some cannabis patients’ pain levels and anxiety appeared to rise over the four-year study.

At 4-year follow-up, compared with people with no cannabis use, we found that participants who used cannabis had a greater pain severity score… greater pain interference score… lower pain self-efficacy scores… and greater generalised anxiety disorder severity scores. We found no evidence of a temporal relationship between cannabis use and pain severity or pain interference, and no evidence that cannabis use reduced prescribed opioid use or increased rates of opioid discontinuation.

One issue with the study that has been raised is that the cannabis products used by patients were not regulated or recorded, so there is no way of knowing whether there were issues with cannabis potency, quality, or even regular access to the plant (cannabis was illegal in Australia while the study was conducted, even for medical purposes).

The study was funded by the National Health and Medical Research Council and the Australian Government. It is the first major study addressing this issue and one of the first to produce negative results for the medical cannabis movement.

Other research has shown that medical cannabis programs in the U.S. lead to a reduction in opioid overdoses and that cannabis could be an effective exit drug for opioid dependency.

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BIG3 Basketball First Professional Sports League to Allow CBD Use

7/02/2018

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Last week, the 3-on-3 basketball league BIG3 announced it would be the first U.S. professional sports league to allow athletes the use of CBD for pain management, USA Today reports. BIG3’s athletes are typically former NBA players.

Earlier this year, CBD was removed from the World Anti-Doping Agency’s (WADA) list of prohibited substances. CBD remains banned, however, in all other sports leagues due to internal league rules.

“Despite many states around the country making efforts to decriminalize or legalize cannabis, both medicinally and recreationally, professional athletes who could benefit medicinally are prevented from doing so by league outdated mandates.’’ — BIG3 statement, via press release.

Already underway with its second season, BIG3 said the policy goes into effect immediately. THC, which is still on the WADA list of banned substances, will not be allowed.

“More than a dozen countries, including Canada and Israel, have approved CBD-based medications for both professional athletes and consumers. In the U.S., the shift is beginning to happen as the medication is not only used for pain management, but preferred over the powerfully addictive opioids and pain-relief drugs that are often the only other option.’’ — BIG3 statement, via press release.

The BIG3 league was started last year by noted rapper and cannabis proponent Ice Cube and entertainment executive Jeff Kwatinetz.

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Massachusetts Issues First Adult-Use Cannabis Retail License

7/02/2018

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Massachusetts has issued the state’s first retail adult-use cannabis license, according to a MassLive report. The retail license allows the recipient company, Cultivate Holdings Inc., to sell adult-use cannabis out of its existing medical dispensary in Leicester, Massachusetts.

Cultivate was in competition with 19 other applicants for the first retail license, but it remains unclear when exactly Cultivate will be able to begin sales.

Massachusetts has fallen behind schedule in licensing the cannabis supply chain, especially for transportation and manufacturing. Earlier in June, the Massachusetts Cannabis Control Commission awarded the state’s first cultivation license to Sira Naturals. Other than Sira Naturals and now Cultivate Holdings, the Cannabis Control Commission has not approved any other licenses. Cultivate also applied for cultivation and manufacturing licenses, which are still awaiting approval.

When Cultivate launches operations, their retail license will still require a last inspection from the Cannabis Control Commission before the license is finalized. Also, while medical cannabis is not taxed in Massachusetts, adult-use cannabis is taxed up to three times: 6.25 percent state sales tax, 10.75 percent excise tax, plus possible local taxes that can add up to an additional 3 percent. When Cultivate begins adult-use sales, it will need to tally those separately from medical cannabis.

Cultivate told regulators that, as soon as the hurdles have been cleared and the company’s adult-use sales are profitable, the company will donate 10 percent of profits to local charities.

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The orange glow of an I-502 cultivation site in Washington state.

Ohio Officials Give First MMJ Cultivator Go-Ahead to Grow, License Early Testing Labs

7/02/2018

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Ohio’s first licensed, state-legal medical cannabis grow has received the go-ahead from the Ohio Department of Commerce, according to a Cleveland.com report.

The certificate was awarded to Portage County-based FN Group Holdings LLC on Friday and authorizes the company — which will be doing business under the name Wellspring Fields — to grow up to a 3,000-foot canopy of cannabis plants.

The state began issuing cultivator licenses in December; none of the facilities, however, had yet to pass an inspection and therefore had not received final approval to put seeds in the ground. Wellspring Fields was the first to pass inspection (another company, Pure Ohio Wellness LLC, had a failed inspection in May) and can begin growing immediately.

Ohio’s medical cannabis program legally launches on September 8. Officials, however, have already admitted that medicine won’t be ready for launch because of delays in the licensing process. At best, patients can hope the delay lasts only a few weeks.

The Commerce Department also on Friday awarded testing lab licenses to two colleges — Central State University in Wilberforce and Hocking Technical College in Nelsonville — and announced that licenses for privately-run labs will be coming soon. All cannabis products distributed in the Ohio marketplace must undergo quality and potency tests by an independent lab.

In June, the pharmacy board issued 56 cannabis dispensary licenses.

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Senate Passes Farm Bill with Hemp Legalization Language Attached

6/29/2018

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On Thursday, the U.S. Senate voted 86-to-11 to pass its version of the 2018 Farm Bill, The Washington Post reports. The Farm Bill, which provides $428 billion in subsidies and other funding, includes language for the federal legalization of industrial hemp. However, some hurdles remain before the bill can be fully passed, despite overwhelming bipartisan support shown in the Senate.

Senate Majority Leader Mitch McConnell (R-Kentucky) sponsored the hemp provisions. McConnell also sponsored provisions for an opt-in pilot program for hemp in the 2014 Farm Bill. Sen. McConnell spoke on the Senate floor on Thursday in support of hemp, televised on C-Span.

“Hemp will be a bright spot for our future. It’s full of economic potential for Kentucky, and the nation. So, Mr. President, we should pass the Farm Bill without delay.” — Sen. Mitch McConnell, in a speech on the Senate floor

The landmark vote is a strong sign of bipartisan favor for the long-stigmatized plant.

“The Senate’s overwhelming approval of the Farm Bill validates the importance of this crop and will make hemp more pervasive, including increased availability in health and wellness products, which are already being adopted by consumers around the world.” — Rory Millikin, co-founder and co-chairman for cannabisMD, in an email to Ganjapreneur

Meanwhile, the House’s version of the bill — passed without Democratic Party support last week — includes a contentious work requirement for food stamps. The Senate did not include those provisions, despite White House support for them, because the bill needed bipartisan support to pass. The disagreement means that some still fear Congress will be unable to pass the Farm Bill before the current bill expires on September 30.

Hemp legalization now awaits unification of the two bills in a joint Congressional conference, before being delivered to the President’s desk to be either signed or vetoed.

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Vermont Adult-Use Legalization Takes Effect Sunday

6/29/2018

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Vermont’s adult-use cannabis laws take effect this weekend; Vermont was the first state to legalize via the legislature instead of a ballot initiative.

Starting Sunday, July 1 adults in Vermont will be able to possess up to one ounce of cannabis and home grow up to six cannabis plants, two of which may be mature and up to four immature. Adults will also be able to possess in their home the full weight of cannabis harvests they perform. The law also introduces penalties for driving under the influence of cannabis with enhanced penalties for driving under the influence with a minor in the car.

“The majority of Vermonters, like the majority of the American public, desire to live in a community where responsible adults who choose to consume cannabis are no longer criminalized or stigmatized. Vermont lawmakers and Gov. Scott are to be recognized for responding to the will of the voters, rather than choosing to ignore them. Vermont is leading by example. Lawmakers in other states would be wise to follow.” — Paul Armentano, NORML Deputy Director, in a press release

The law was signed into effect by Republican Gov. Phil Scott in January; the governor had indicated support for the bill even before it reached his desk.

“This is a libertarian approach. I’ve said I’m not philosophically opposed to it. I know there are diverse opinions … as to whether we should move forward, but I still firmly believe that what you do in your own home should be your business, as long as it doesn’t affect someone else.” — Gov. Phil Scott, via Seven Days.

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California Dispensaries Offloading Cheap Product; Shortage Looms with Regulatory Transition Period Ending Sunday

6/29/2018

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On Sunday, July 1, California’s adult-use cannabis industry will undergo a major overhaul.

When the industry kicked off in January, it came with a six-month grace period of “mandatory” but unenforced compliance. Most companies took advantage of this and have been conducting business as usual but, as that time comes to a close this weekend, there has been a rash of fire sales in dispensaries across the state as they try to offload tens of thousands of dollars of untested and potentially non-compliant cannabis products, the Desert Sun reported this week.

Some dispensaries are selling products at near wholesale cost, just trying to cut their losses and avoid having to destroy non-compliant product after the weekend.

Scott Lambert, CEO of The OG Collective in Cathedral City, said that even though he has reduced prices “by 70 or 80 percent in order to get rid of it,” he may have to destroy nearly $150,000 worth of product on July 1.

At least one company, Cathedral City’s Remedy Inc., is taking a more festive approach to the weekend. Owner Klint Jackson said the shop is hosting a big barbeque on Saturday to hopefully offload the dispensary’s remaining $20,000 to $30,000 worth of non-compliant product.

“The world explodes on the first. It’s a big event for us.” — Klint Jackson, owner of Remedy Inc., via the Desert Sun

For the most part, however, entrepreneurs remain wary as the industry barrels into the second half of the year. Even companies who have successfully pared down their inventory in preparation for July 1 are worried about fallout from the transition.

Chris Scagliotti, President of Green Cross Pharma, said that smaller manufacturers in California will have a harder time satisfying the industry’s demand after the weekend.

“You can’t reinvent an industry in six months. It’s just not enough time.” — Cris Scagliotti, President of Green Cross Pharma, via the Desert Sun

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Cannabis Advocates Running for Office in Washington State

6/28/2018

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Washington state’s cannabis caucus is poised to grow this year, with at least five candidates who are either cannabis activists, have worked in the industry, or currently own cannabis businesses running for state and local offices.

Statewide elections

Crystal Oliver — who owns an outdoor cannabis farm in Eastern Washington, is an executive assistant to WA NORML, and is on the Executive Board of the Cannabis Farmers Council — is throwing her hat in the ring as a Democrat in the 7th legislative district. As a mother and graduate student, Oliver is focusing on health care, regulation reform, and open government in her campaign for the state House. As a cannabis farmer herself, she has worked tirelessly through the implementation of Washington’s adult-use cannabis system.

“Cannabis farming has certainly been a gateway to politics for me. Starting my cannabis farm has been the education of a lifetime. Since regulations didn’t already exist for our businesses, stakeholders had to build the regulations from the ground up.

I found that I had a natural talent for reading, recalling, and critiquing regulations and law as well as bridging the gap between farmers and politicians. Through my interaction with regulators and legislators, I came to realize that I had many of the skills needed to effectively serve the public.” — Crystal Oliver, in a statement

Liz Hallock is the owner of Cannabis Express in Yakima and is running as a Democrat for District 14’s second seat position in the House to bring a more scientific and fact-based approach to government. Educated at Princeton and having practiced law for ten years in Washington State, Hallock hopes to unseat the Republican incumbent.

“My opponent hasn’t supported any of the cannabis bills that have been in Olympia. Our products are really ignored when it comes to fighting the opiate crisis. I really feel if you can’t get the cannabis thing right when it’s such a no-brainer, how will you fix the harder problems?”

“The way government should work is you get all the stakeholders in a room, figure out the most things you can agree on and come to a consensus, all while protecting people’s rights. I want to work to have a state government that works with the scientific method and facts, not religion and feelings.” — Liz Hallock, in a statement

Jessa Lewis is a working mom and former I-502 employee who says she has had it with Eastern Washington politics. She is running for the state Senate in the 7th District as a Democrat.

“The number one thing I am hearing from voters is a need to address healthcare issues and mental health, but I also hear a lot about fixing our education system and building an economy that works for all. I left working in 502 to focus on policy and politics after being a National Delegate for Bernie Sanders. The cognitive dissonance I experienced in 502 — I was selling a product to little old ladies that was causing mass incarceration in the rest of the country — really showed me there was a need for new blood in the political arena to fight against the reefer madness of today.” — Jessa Lewis, in a statement

Local elections

Jed Haney is a fourth generation Washingtonian who wants to bring a progressive platform to the Thurston County Commission, Seat 3. Running as an Independent, his platform focuses on public safety, environmental management, and economic sustainability.

“I’m running as an Independent because I want to be a fresh voice outside the two-party echo chamber. We need champions to represent the people and not party politics. Before getting involved in the legal cannabis fight, I didn’t interact with the open government public process much, but in 2014, when I observed the City of Yakima along with Yakima County subvert the will of the people by placing cannabis bans, that really pushed me to act. Since then, I’ve worked with people all around the state from all different backgrounds to improve cannabis policy in Washington State.” — Jed Haney, in a statement

Lee Dunkin is a Tier 1 cannabis producer running for Chelan County Commissioner, District Two. Responding to the heavy-handed approach Chelan County took toward cannabis, this former county employee says affordable housing and high unemployment are the biggest issues in the county — but he feels the county’s government is entirely broken.

“The main hurdle to dealing with any issue in Chelan County right now is getting the county to actually do something other than regulate and tax its citizens. The internal structure and function of the county no longer work.”

“If there is one place on the planet cannabis should be grown it is in Chelan County, 300 days of sun and the cheapest power in the nation! Instead of working with cannabis businesses, the County has fought us every step of the way. After two and a half years of fighting and spending over $160,000 in legal fees, I saw no other choice but to run for office. The County Commissioners have divided this community just because a few people don’t like the smell of pot. They pitted neighbor against neighbor and have wasted countless taxpayer dollars on closing farms and small businesses.” — Lee Dunkin, in a statement

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