Legal texts sitting open on a dark wood table.

Benton County, Arkansas Judge Tells Colleagues They Have No Right to ‘Relitigate’ MMJ Law

9/06/2017

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Benton County Judge Barry Moehring has told county officials that it is not their jobs to “relitigate a matter people voted for,” referring to the 2016 ballot initiative to legalize medical cannabis, rather it is a planning board matter.

According to the Northwest Arkansas Democrat-Gazette, Moehring made the statement during a Quorum Court meeting after Justice of the Peace Brent Meyers asked him for clarification on the matter, concerned that the county would be approving an illegal business due to conflicting federal law.

Under the constitutional amendment, the only way a city or county can prohibit cannabis industry operations is via a local referendum.

“The state is setting up regulations for it,” Moehring told Meyers, according to the report. “The Planning Department has those. Our job is, within our planning regulations, to follow the law.”

In a memo to Moehring, George Spence, county attorney, said that while the Justice Department could choose to shut down state-approved medical cannabis facilities, “the state is going about providing regulations as provided for in the amendment.”

However, while officials are moving forward, cannabis industry operator licenses have been slow to materialize in the state. As of Aug. 31, just two dispensaries had applied, and one was rejected by the Russellville Planning Commission. Some officials are expecting an influx of applications as the Sept. 18 deadline draws closer.

The Benton County Planning Board is set to hear the medical cannabis cultivation proposal today.

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The large cola of a commercially grown cannabis plant.

Hocking College to Apply for Ohio MMJ Testing License, Launch Cannabis Lab Major

9/05/2017

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Hocking College, a two-year technical school in Nelsonville, Ohio, announced that they intend to serve as a cannabis testing facility as required by the state’s medical cannabis law – and are, so far, the only institute of higher education in the state to make public their interest in the sector.

Under state law, cannabis testing labs must be owned and operated by an institute of higher education. During a press conference, Hocking President Dr. Betty Young indicated the college has submitted the appropriate documents to the Ohio Department of High Education to launch a laboratory science program beginning in the Fall, 2018 semester. Hocking is currently in the process of developing a comprehensive laboratory science curriculum, including tracks in medical laboratory technician, forensics, chemical and cannabis laboratory science. The curriculum will be designed to meet the accreditation standards of the National Accrediting Agency for Clinical Laboratory Science.

If the program is approved, Hocking’s cannabis lab tech major would be the first in the nation.

“We recognize that this is a bold leadership decision; and one we have not taken lightly,” Young said during the press conference. “With months of exploration, we are proud to lead the way as Ohio’s institute of higher education willing and able to commit to being Ohio’s center for research and development of this new industry.”

The college is partnering with Dr. Jonathan Cachat on the laboratory science and cannabis testing project. Cachat will develop the undergraduate curricula, undergraduate research, and serve as the director of the lab. Cachat previously served as the director of a psychopharmacology lab at New Orleans’ Tulane University, which held a license from the Drug Enforcement Agency to research compounds scheduled under the Controlled Substances Act.

“Education is the answer to many public issues we face, from job opportunities to opiate abuse,” Cachat said during his remarks. “Cannabis is a plant, not a pill.”

Cachat indicated that, if approved, the lab will test for pesticides, molds, and fungus in addition to THC and CBD content and ratios. The data will be collected by the college and Cachat applauded the decision by the legislature to put testing in the hands of institutes of higher education because it ensures “the translational exchange from data, information, and knowledge will be complete.”

Cachat called the college administrators “courageous” for moving forward with the program and pointed out that that there are more than 230 medical and clinical lab technician job openings annually with a median salary between $40,000 and $60,000.

“Not only will there be opportunities for hands-on training of lab technicians, we will be able to assist and further biomedical research by connecting the dots between analytical profiles and disease symptomology,” Cachat explained, suggesting that the data would be shared with the medical community. “This is not a privately-owned, privately-controlled analytics lab. We intend to create opportunities for discovery, rather than destroy them by hoarding the data to ourselves.”

Neither Cachat nor Young knew of any other Ohio college or university that has applied, or plans to apply, to participate in the state’s medical cannabis program. Cachat said that the team anticipates submitting their application on time – before Sept. 22 – and the state is expected to make their decision within 90 days; less if Hocking’s is the only application the state receives.

Tim Brunicardi, executive director of marketing, public and community relations for Hocking College, indicated that school officials had consulted with legal counsel before deciding the launch the program to ensure that the school would not be at risk to lose any federal funding due to their participation in the state’s medical cannabis industry.

“We’re supporting the Ohio legislation and … we don’t anticipate having any potential issues with the federal government,” he said in a phone interview.

Young indicated that in the short-term the college would seek $5 million in public and private support for the project, which would immediately create 12 new jobs in conjunction with the lab’s opening. Brunicardi explained that there “is potential” for the lab to, eventually, become a source of revenue for the college.

“Yes, there are potential revenue streams there,” Cachat added. “But it’s more about creating opportunities for education and improving the economic viability of the region, as well as the health of all Ohioans – all that’s over profits.”

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California Assembly Appropriations Committee Rejects Ban on Cannabis Clothing Ads

9/05/2017

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California’s Assembly Appropriations Committee has put the bill to outlaw cannabis advertising on clothing on hold, effectively killing the proposal that industry stakeholders argued would have deprived them of legitimate profits, the Los Angeles Times reports.

State Sen. Ben Allen, who had proposed the legislation, claimed it “was a commonsense measure” aimed at preventing cannabis use by teens. The bill had garnered the support of the California Police Chiefs Association and the American Academy of Pediatrics.

“The Legislature in the past has wisely prohibited advertising with branded merchandise by tobacco companies, expressly because items like hats and t-shirts are known to entice kids to smoke,” he said in the report.

In addition to potentially depriving them of profits, opponents of the measure, including the California Cannabis Manufacturers Association, argued that the bill violated their free speech rights.

The legislation would have restricted medical and recreational cannabis businesses from advertising products “through the use of branded merchandise, including, but not limited to, clothing, hats, or other merchandise with the name or logo of the product.” Non-commercial speech, such as nonprofits, would have been excluded under the law.

The bill had previously been approved by the state Senate.

There are advertising restrictions on the cannabis industry under California’s voter-approved legalization law, but those are primarily zoning restrictions focused on where ads can be placed.

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Cannabis clones inside of a sterile, commercial grow room.

Advocates Claim Texas MMJ Law Dysfunctional and ‘Broken’

9/05/2017

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Advocates in Texas say the state’s medical cannabis program may not serve any patients due to the limited product offerings and language in the law requiring physicians to “prescribe” cannabis that may prevent doctors from certifying patients out of fear of violating federal law, the Houston Press reports. The measure was signed by Gov. Greg Abbot in 2015 and as of Sept. 1, three companies had been licensed to grow and produce cannabis and cannabis oils in the state.

Last month, the Texas Cannabis Industry Association sent a letter to the governor’s office and the Department of Public Safety, accusing officials of enacting a broken law that makes the program unworkable, claiming that it requires state agencies to act in good faith in order to work.

And while physicians in states with medical cannabis programs are permitted to “recommend” cannabis, which is codified by a 2002 Ninth Circuit Court of Appeals ruling, they are not allowed under federal law to “prescribe” cannabis – a requirement of the Texas program.

Heather Fazio, spokeswoman for the Texas Marijuana Policy Project, said the group is concerned the language will prevent doctors from registering with the program.

However, state Rep. Stephanie Klick, who introduced the House version of the law, said the language was what physicians “felt comfortable with.” While Rusty Payne, a Drug Enforcement Administration spokesman was adamant that physicians could not prescribe a Schedule I substance.

“If a medicine could be prescribed, it would not be Schedule I,” he said in the report. “Does that make sense?”

The only way to change the language is via the Legislature.

Advocates also argue that since the law limits THC content in the oils at 0.5 percent, patients can obtain similar products, derived from industrial hemp with 0.3 percent THC, on the Internet, making Texas’ law relatively moot.

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A teacher gives a lecture while one student is on their phone during class.

Washington State Think Tank Finds Legalization Has Not Increased Teen Cannabis Use

9/05/2017

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The Washington State Institute for Public Policy has released their second round of reports required under the state’s cannabis legalization law, finding that adolescent cannabis use is not up since legalization and the industry has employed nearly 10,900 people.

The Evaluation and Cost-Benefit Analysis indicates that while legalization has not led to a spike in cannabis use among teenagers, consumption has increased among adults aged 26-and-older. Moreover, the think tank found that since legalization, students in sixth through twelfth grades report that cannabis is harder to obtain, with 90 percent of sixth graders indicating cannabis is “very hard to get,” while the sentiment is shared by about 85 percent of eighth graders, 55 percent of tenth graders, and 40 percent of twelfth graders.

Among adults, binge drinking rates are also down about 2 percent since legalization, although 30-day heavy drinking and heavy cannabis use rates, defined as 20-plus days, have remained stable around 5 percent and 4 percent, respectively.

The researchers said the findings “represent a snapshot” of their progress to date and “are an intermediate step toward the ultimate benefit-cost analysis” of the legalization initiative.

The Employment and Wage Earnings in Licensed Marijuana Businesses analysis reported that the 10,894 cannabis industry employees are equivalent to 6,227 full-time employees, and the industry has paid $53,250,843 in wages since the launch of legal sales. On average, licensed cannabis companies employed an equivalent of 8.99 full-time employees in the final quarter of 2016, but over one-third of those businesses had fewer than four full-time employees. The average wage for a cannabis industry employee was $16.45 per hour, with a median wage of $13.44 per hour.

“The average wage is higher than the median wage because a few highly paid workers lifted the average above the median,” the report states.

As of April 11, there were 2,020 licensed cannabis businesses in Washington state, the bulk of which, 1,438, were producers or processors. Another 572 licenses were for retail dispensaries, with seven transportation licenses and three tribal compacts.

The researchers note on the employment report that there are “several limitations” to the research and they have “taken a conservative approach to estimation wherever possible.”

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An empty university lecture room.

Sonoma State University Expanding Cannabis Industry Seminar Program

9/05/2017

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Rohnert Park, California’s Sonoma State University is expanding their extended education cannabis industry classes, which are focused on a variety of subjects including direct-to-consumer marketing and medicinal uses of cannabis, the Press-Democrat reports. The university’s School of Extended and International education held its first seminar in March, called “Medical Cannabis: a Clinical Focus,” which was attended by 100 students.

The college’s June seminar, which cost $99 and offered students certificates and extended learning credits, focused on emerging local and state regulations. The next seminar, planned for October, focuses on finance and investing and will be led by investment firms CannaAngels and Poseidon Asset Management LLC. The class is the first internally developed by the college.

Robert Eyler, School of Extended and International Education dean, said that the college is unable to run classes “explicitly about the supply chain” due to cannabis’ federal status as a Schedule I substance, and doing so could put the school at risk of losing federal funding.

“We can’t do classes on entrepreneurship, distribution, growing or selling,” he said in the report. “What we can do are seminars on all the topics around those topics.”

The university is currently discussing a 16-week course focused on cannabis use for elderly patients that they are hoping to develop with Dr. Jeffrey Hergenrather, founding member of the Society of Cannabis Clinicians. That course would require science prerequisites to enroll.

Several higher education institutions in the U.S. have rolled out cannabis-centric course offerings, including The University of California at Davis, and the University of Maryland School of Pharmacy. The City College of San Francisco announced earlier this year that they plan on adding a cannabis industry course to their curriculum.

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Cannabis clones inside of a commercial grow operation.

FDA Requests Public Comments on Therapeutic Value of CBD

9/04/2017

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The U.S. Food and Drug Administration (FDA) has put out a call for public comments regarding the therapeutic values and potential for abuse of several substances, including cannabidiol or CBD.

According to a document released by the FDA, the agency will consider any submitted statements while preparing their response to the World Health Organization (WHO) regarding the “abuse liability and diversion of these drugs” — WHO will then use this information to consider whether certain international restrictions should be placed on the substances.

The public comment period is open until September 13, 2017. Statements can be made online or via mail — electronic comments must be submitted on or before the due date using the agency’s electronic filing system available at www.regulations.gov. Comments by mail or hand delivery must be delivered or postmarked on or before September 13 and can be mailed to:

Dockets Management Staff (HFA-305)
Food and Drug Administration
5630 Fishers Lane, Rm. 1061
Rockville, MD 20852.

The Drug Enforcement Agency (DEA) currently defines CBD as an illegal, Schedule 1 substance despite a swath of research and anecdotal information that speaks to the cannabinoid’s relative harmlessness and therapeutic value.

Other substances for which the FDA is accepting public comments include Furanylfentanyl and Acryloylfentanyl (two extremely powerful new opioid analgesics), Ketamine, Tramadol, and about a dozen other substances.

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A commercial air plane flies in front of the glowing orange sky of sun down.

Las Vegas Dispensary Secures In-Flight Advertisements with Airline

9/04/2017

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Acres Cannabis — a cannabis retailer in Las Vegas, Nevada — has secured an advertising deal to appear in corporate airline Allegiant Air’s in-flight magazine, according to a press release from the company.

This announcement comes following a broad Clark County Commission proposal that would ban cannabis advertisements throughout Las Vegas’ McCarren International Airport properties and potentially even in taxi cabs and other transport options for traveling to and from the airport.

Acres’ 20,000 square-foot medical and adult-use cannabis dispensary is located just off the Strip in Las Vegas. The company’s retail location also sports a large, in-house cultivation and processing operation with an open view kitchen so customers and patients can see first-hand the infusion of cannabis products.

“Acres’ recent Airline campaign creates another first for the marijuana industry and helps propel all of us towards mainstream acceptance,” said Acres founder and CEO John Mueller. “Acres plans to continue to lead the industry by cultivating one of a kind cannabis experiences.”

There are currently 55 dispensaries licensed to serve the adult-use cannabis industry in Las Vegas — the industry, however, has experienced growing pains since the recreational market opened. Cannabis sales throughout the state have fallen dramatically as the state’s legalization law prevents anyone but alcohol wholesalers from distributing cannabis products.

A recent Nevada Tax Commission ruling found that existing liquor distributors cannot fully handle the industry’s distribution needs and called for the licensing of additional companies to move products around in the cannabis space.

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A bank teller counts out cash for their customer.

One Bank Serving Six of Florida’s Seven MMJ Companies

9/01/2017

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Six of Florida’s seven licensed medical cannabis companies are doing business at First Green Bank, an Orlando-area financial institution founded in 2009, the Tampa Bay Times reports. The small firm has just six branches throughout Central Florida, managing about $622 million in assets.

Lex Ford, a senior vice president at First Green, said the institution was started down the path of working with the cannabis industry because founder Ken LaRoe’s wife was changed when she began using cannabis for seizures. LaRoe founded the bank with social responsibility and environmental principles in mind, offering low-interest rate loans and discounts on “green” initiatives.

Ford indicated that the bank employs a team who work exclusively with cannabis business clients and they have very strict policies and security procedures in place because “cash is still king” in the cannabis space due to federal law.

“We presented our plan to the FCC, FDIC and every regulatory group out there possible,” Ford said in the report, noting that they use armored cars to pick up the cash, which is deposited directly into an account in the Federal Reserve. “It’s possible to do this. We just have to do it right. So we’re being as transparent as possible.”

Florida will grant ten more licenses to medical cannabis producers this year following a massively popular vote to expand the state’s medical cannabis regime last November.

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Fresno, California City Council Moves to Ban Adult-Use Industry

9/01/2017

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The Fresno, California City Council has voted 4-3 to ban adult-use business operations in the city, but the code amendment still faces a second reading before taking effect, the Fresno Bee reports. The ban would apply to “any cultivation, manufacture, processing, storing, laboratory testing, labeling, transportation, distribution, delivery or sale of marijuana” for recreational use; however testing labs would be permitted in the city’s industrial areas if cannabis testing represents 20 percent or less of their business.

City Council President Clint Oliver, who voted against the proposal, called the ban “flawed.”

“I believe it’s a rush to judgement, a knee-jerk reaction,” he said in the report.

Previously, councilors had approved a measure by Oliver that would see the city hire a consultant to analyze how other California cities are approaching recreational sales and potential revenues derived from cannabis taxes.

Mayor Lee Brand supported both the ban and Oliver’s proposal – which would allow Brand to appoint a three-member council subcommittee to find a consultant.

“This is a huge issue across the state, billions of dollars are being spent,” Brand said during the city council meeting. “We need to at least take a look and see what the implications are.”

In June, the City Council voted to cap the number of cannabis plants individuals could cultivate in their homes to six; however, that ordinance has not yet taken effect as the councilors have been so far unable to bring it to the table for a second vote.

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A Canadian flag using a cannabis leaf instead of a maple leaf.

Canadian Franchise Association Accepts First Cannabis Company

9/01/2017

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Canadian cannabis company Spirit Leaf Inc. has become a member of the Canadian Franchise Association – the first cannabis company to be granted membership into the association. The company, a wholly-owned subsidiary of Inner Spirit Holdings Ltd., already has granted four individual franchises – three in Calgary, Alberta, and one in Peterborough, Ontario – and has approved a 10-store development agreement in the Greater Toronto area.

“We are very proud to be a member of the CFA and to introduce our new retail concept to the franchise community,” said Darren Bonder, CEO of Spirit Leaf, in a press release. “This is another positive step forward for our company and I believe it also sets a high benchmark for the industry when the sale of recreational cannabis in Canada becomes legalized on or before July 1, 2018.”

The company plans on launching a national advertising campaign this fall, including ads in both franchise and cannabis-centric publications, and will be included on a national franchise show tour. Spirit Leaf is partnering with Search Kings for their digital ad campaign.

According to Spirit Leaf’s profile on BeTheBoss, a website featuring Canadian franchise opportunities, the franchise would require an investment between $200,001(US$160,561) and $300,000 (US$240,840), and a 5 percent royalty fee.

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Massachusetts Treasurer Picks Legalization Opponent to Head Cannabis Control Commission

9/01/2017

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Yet another cannabis legalization opponent has been named to the Massachusetts Cannabis Control Commission, as Steven Hoffman has been tabbed to lead the agency by Treasurer Deborah Goldberg. Hoffman, a former partner at the management consulting firm Bain & Company, joins other legalization adversaries in state Sen. Jen Flanagan and Walpole Police Chief John Carmichael Jr., who were appointed by Gov. Charlie Baker.

According to WBUR, Hoffman voted “no” on the legalization ballot question.

“I hope to guide this Commission thoughtfully and responsibly as we implement the legalization of recreational marijuana in Massachusetts,” Hoffman said in a statement. “We have a lot to do, I am excited to get to work.”

Under the legislature’s version of the voter-approved law, the treasurer’s appointee was required to have finance, securities, or corporate management experience. In addition to his work running Bain’s 600-person Boston office, Hoffman has served as the executive vice-president and chief strategy officer at Sapient, and senior vice president at CSC Index – both corporate management consulting firms.

“Steven brings a wealth of invaluable experience from a long and distinguished career in business development, corporate strategy and senior management,” Goldberg said in the release. “I am confident that he will serve the Commonwealth well and steer this brand-new industry in the right direction.”

Hoffman, 64, will serve a five-year term.

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A collection of medical cannabis clones inside of a commercial grow facility.

Connecticut Court Allows MMJ Patient Lawsuit Against Prospective Employer to Continue

8/31/2017

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A U.S. District Court judge in Connecticut has rejected a request to dismiss a lawsuit against an employer who rescinded a job offer after the applicant, a registered medical cannabis patient in the state who suffers from post-traumatic stress-disorder, tested positive for cannabis on a drug screening.

The employer Niantic Operating Company, doing business as Bride Brook Nursing & Rehabilitation Center, argued they had the right to withdraw the offer because federal law supersedes state law, therefore, the plaintiff, Katelin Noffsinger, had no grounds to sue the company for revoking the offer she had already accepted.

Bride Brook had claimed that they were protected from legal action under the federal Controlled Substances Act (CSA), the federal Food, Drug, and Cosmetic Act (FDCA), and argued that the anti-discrimination employment provision under the state’s the Palliative Use of Marijuana Act (PUMA) violated the Americans with Disabilities Act.

In his decision, Judge Jeffery Alker Meyer ruled that neither the CSA nor FDCA have jurisdiction over employment law; and the CSA “does not make it illegal to employ a marijuana user.”

“Like the CSA, however, the FDCA does not purport to regulate employment, and my focus here is limited to the validity of PUMA’s anti-discrimination-in-employment provision,” Meyer wrote. “Because [the provision] neither conflicts with nor poses an obstacle to the goals of the FDCA, I conclude that the FDCA does not preempt [the provision].”

Meyer called Bride Brook’s claims that PUMA violates the ADA “counterintuitive” and “crafted in order to make clear that the ADA does not extend its protections to persons who use illicit drugs or alcohol.”

“First and most importantly, the ADA explicitly provides that an employer ‘may prohibit the illegal use of drugs and the use of alcohol at the workplace by all employees,’” he wrote, noting that Noffsinger testified that she uses one Marinol capsule once-a-day before bed. “But the facts of this case do not involve any use of marijuana by plaintiff at the workplace, and PUMA explicitly declines to authorize such workplace use.”

The ruling allows Noffsinger to proceed with a lawsuit against the company. She is seeking damages for emotional distress and attorney’s fees.

This is the third case this year that a medical cannabis patient has found protections under their respective state medical cannabis laws. In July, the Massachusetts Supreme Court ruled that a registered patient terminated after failing a drug test for cannabis could sue the employer for handicap discrimination, and in earlier this month a New York City Office of Administrative Trials and Hearings judge determined that the Taxi and Limousine Commission could not revoke a TLC license from a registered medical cannabis patient.

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Utah Demands Retailers Stop Selling Pet Food Containing Hemp

8/31/2017

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The Utah Department of Agriculture and Food has sent warning letters to 27 Utah companies asking them to stop selling pet food containing hemp, according to a KSL TV report. The letters asked the producers for “voluntary compliance in recalling previously distributed products and refraining from future sales of hemp and hemp products in the State of Utah.”

According to an Agriculture Department press release, officials in Texas, Colorado, and Washington have sent similar letters.

Robert Hougaard, Plant Industry and Conservation director, told KSL it’s an issue the agency has “been monitoring for a while” adding that they have been “concerned about it.”

“There are many unanswered questions about how the ingredients in hemp could interact with large and small animals,” Hougaard said in a statement. “Until sufficient peer reviewed science is presented and the [Food and Drug Administration] and [Association of American Feed Control Officials] have accepted them as an approved animal feed ingredient, the UDAF will continue to prohibit the manufacturing and distribution of the adulterated products,” he added.

Officials said that AAFCO guidelines adopted by the FDA do not recognize hemp-containing products as approved feed and are considered to be adulterated – a violation of the Utah Commercial Feed Act and the Utah Wholesome Food Act.

According to the letter, outlined by KSL, the agency does threaten regulatory action if the companies do not provide a plan of corrective action within 15 days.

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Iowa Gov. Reynolds Makes Cannabis Board Appointments

8/31/2017

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Iowa Gov. Kim Reynolds has appointed eight members to the board that will oversee the state’s expanded medical cannabis program, known as the Medical Cannabidiol Act, which now permits cannabis to be grown and cannabis products produced in the state.

According to the Quad-City Times report, Reynolds tabbed Dr. Ken Cheyne, a pediatrician; Dr. Lonny Miller, a family medicine specialist; Dr. Jill Liesveld, a psychiatrist; Dr. Robert Shreck, an oncologist; Dr. Stephen Richards, a pharmacist; Dr. Wendy Zadeh, a neurologist; Dr. Jaqueline Stoken, a pain management specialist; and Mike McKelvey, a law enforcement representative. The unpaid positions do not require state Senate confirmation.

The expanded law requires eight medical practitioners representing specific fields and one law enforcement representative to sit on the board and officials are still seeking one gastroenterology representative for the board.

Under the previous law, Iowans with epilepsy could obtain CBD treatments, but it did not permit the products to be produced or sold in the state. The new rules allow for two licensed producers, who must pay a $7,500 application fee, and five licensed dispensaries, which will pay a $5,000 application fee. The businesses must be operational by Dec. 1, 2018.

According to the report, officials plan on licensing the businesses by April.

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Viewing the underside of a medical cannabis plant's leaves.

Arkansas Officials Reject Dispensary Proposal Amid Slow Cannabis Industry Applications

8/31/2017

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Medical cannabis cultivation and dispensary applications in Arkansas are still slow, and Russellville Planning Commissioners have struck down a proposal from one of just two dispensary applicants, the Courier News reports. The commission voted 4-2 against the dispensary’s special use permit due to its proposed location near a church and a “high traffic area.”

Planning Commission Secretary Wendell Miller said that while he agreed with what the dispensary was doing he didn’t agree with where they were doing it.

“I don’t think that’s the environment we want to have that close to a church,” he said in the report.

David Cannon, the attorney for the would-be dispensary owners, said that the business could generate as much as $258,000 per month, worth as much as $2,600 in sales tax revenues, because the county it would be located in could have as many as 900 patients, with another 100 coming from nearby Yell, Johnson, and Conway counties.

Arkansas’ medical cannabis rules allow 32 dispensaries throughout the state and, despite the lack of applications currently, officials are still anticipating applicants will submit proposals to the department as the Sept. 18 deadline draws near.

In a report from National Public Radio affiliate KUAR, Rep. Doug House said he expects “a mad rush” on the last day.

The Arkansas Department of Health reports that they have approved 769 medical cannabis patient applications in the state.

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Looking out the passenger window of a moving car.

Considering Delivery Options for Cannabis Dispensaries and Retailers

8/31/2017

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Whether you’re ordering pizza, Chinese, or Indian food, there’s nothing better than that knock on the door when your food delivery person arrives — you get all the benefits of restaurant food without ever having to leave your home. Naturally, some entrepreneurs in the U.S. have adapted this unique service to the cannabis space.

The business of cannabis delivery

In California, there are more than 100 cannabis delivery services, but they don’t cover the entire state — there are a number of areas where these deliveries are strictly banned, and still more where they aren’t allowed to use public roads to deliver cannabis to their customers.

These delivery options aren’t being created for entirely altruistic reasons. Not only is it good for customers who might not be able to visit their local dispensary, it’s good for the businesses too. Interacting with customers one-on-one in their homes provides a unique opportunity for these delivery drivers to increase sales, inform customers of promotions, and most importantly — build a relationship between business and customer.

It’s similar, in a way, to the relationship that develops between a business owner and their vendors. Seeing the same vendor frequently enables these businesses to create a relationship with them. You’re generally more likely to ask for a favor from someone you know and trust than you would from someone you just met — like if you needed a specific product delivered on a particular day or time, or something like that.

Even in states like New York, where the plant hasn’t yet been legalized for recreational use and the state’s medical cannabis regulations are notably strict, industry operators and patients are still utilizing delivery services to facilitate the state’s medical marijuana program.

In states where medical cannabis is legal, it’s basically the same as having your prescriptions mailed to you. The only difference is that the human drivers must verify your identity before delivering your order to you, since you do require a doctor’s recommendation to obtain and use medical cannabis.

Cannabis delivery and federal law

Adult-use cannabis has been legal in Colorado since 2012, but purchasing cannabis product requires citizens to be over the age of 21 and to visit their local dispensary. For most people, that trip isn’t a problem and it becomes as regular as a trip to the grocery store. However, for others — especially those lacking transportation or those who aren’t ambulatory — the trip can be difficult or impossible.

Earlier this year, lawmakers in the state attempted to legalize the delivery of medical cannabis products using a system based on one that had just come online in Oregon.

However, Colorado Gov. John Hickenlooper, fearing potential ire from the Trump Administration, used his veto powers to block it — calling it a dangerous attempt “to carve off new turf and expand markets and make dramatic statements about marijuana.”

For a state that’s already raking in the tax dollars, this bill looked like yet another step in the right direction — but fear of a federal crackdown continues to derail the legal cannabis industry.

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Digital image of a wine collection on display on the walls of a wooden room.

Nevada Tax Commission: Liquor Distributors Not Sufficient for Cannabis Industry

8/30/2017

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The Nevada Tax Commission has upheld the previous decision by the Tax Department that there are not enough liquor distributors in the state to serve the growing retail cannabis market, the Las Vegas Review-Journal reports. However, the commission’s decision is not final as the distributors have appealed the denial of a previous injunction request by the Nevada District Court. That case will be heard by the state Supreme Court next month.

Kevin Benson, attorney for the alcohol distributors, argued that the Tax Department did not give the cadre due process to present their case.

“There was no opportunity to question anything being presented in the meeting,” Benson said in the report. “There was no way to get to the bottom of any of those things.”

Under the voter-approved recreational cannabis law, liquor distributors were given a monopoly on cannabis delivery but, shortly after the program launch, it was clear that there weren’t enough companies – or interest – to serve the industry. Presently, there are just six licensed cannabis distributors in the state and 29 licensed transport vehicles but it is not known how many of those vehicles are operational.

The Tax Department, who is currently overseeing the cannabis program, has argued along with cannabis retailers that the distribution issues have led to lost sales and a drop in product varieties.

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Advocacy Groups Head to D.C. Pushing for Cannabis Protections, Reforms

8/30/2017

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In less than two weeks advocates will bear down on the nation’s capital in an effort to lobby federal lawmakers on cannabis policy, as the National Organization for the Reform of Marijuana Laws hosts their annual lobby day and Hoosier Veterans for Medical Cannabis head to the District for a forum focused on veteran access issues.

The push will be the first organized action by the advocacy groups in Washington, D.C. since the election of President Donald Trump, whose administration is loaded with anti-cannabis zealots, most notably Attorney General Jeff Sessions, who heads the Department of Justice.

Budget amendment protections & veteran access

Justin Strekal, political director for NORML, said the three-day event — from Sept. 10-12 — will be laser-focused on the appropriations process and the various cannabis-related budget amendments being offered by the group’s allies in Congress.

Budget amendments represent one of the only real protections for the cannabis industry by federal policymakers. It’s an amendment to the 2014 federal Farm Bill that allows states to create hemp cultivation pilot programs; an amendment tucked into the omnibus spending bill – the so-called Rohrabacher-Farr amendment – prevents the Department of Justice from using federal funds to interfere with state-approved medical cannabis programs. That amendment, now known as the Rohrabacher-Blumenauer amendment, was approved last month by the Senate Appropriations Committee but still needs approval from the Republican-controlled House. California Rep. Dana Rohrabacher has championed the amendment since its first inclusion in the federal budget in 2014; Oregon Rep. Earl Blumenauer has replaced California Rep. Sam Farr as the co-sponsor on the measure, following Farr’s retirement in 2016.

This year, for the first time, lawmakers will decide whether to allow military veterans access to medical cannabis if they reside in a legal state via the Veterans Equal Access Amendment, which is tacked onto the 2018 Military Construction, Veterans Affairs and Related Agencies Appropriations bill. That measure was approved by the Senate Appropriations Committee 24-7 last month, but faces the same challenges Rohrabacher-Blumenauer does in the House.

Sights set on descheduling

Strekal said the organization also has their sights set on two “static” proposals that would effectively legalize cannabis federally – H.R. 1227, the Ending Federal Marijuana Prohibition Act of 2017 is sponsored by Virginia Republican Representatives Thomas Garrett and Scott Taylor, along with Hawaii Democrat Rep. Tulsi Gabbard. The legislation would remove cannabis from the federal Controlled Substances Act and allow states to decide their own cannabis policies, whether it be legalization or prohibition. The organization is also lobbying lawmakers to co-sponsor or otherwise support S.1689, the Marijuana Justice Act introduced by New Jersey Democratic Sen. Corey Booker, which would not only deschedule cannabis but also expunge all federal cannabis possession or use offenses from criminal records.

“This (expungement) is something Congress has never addressed before,” Strekal explained. “We think it’s incredibly vital to the conversation.”

The Ending Marijuana Prohibition Act, introduced last March, carries 15 bi-partisan co-sponsors from both legal and non-legal states, and is currently delegated to the House Subcommittee on Crime, Terrorism, Homeland Security, and Investigations; while Booker’s name is presently the only one attached to the Marijuana Justice Act, which was only introduced on Aug. 1 and sent to the Senate Judiciary Committee.

Conference lineup

The advocacy group will also be holding its annual conference, during which they will honor chapter leaders who have led successful cannabis reform campaigns on a local level. Strekal indicated that one of the panels convening during the conference, titled “We Legalized, Now What?” will examine how to remove the “stigma of the consumer and alleviate the tensions that people face” in cannabis-legal states — including workplace drug-testing and discrimination — and introduce rules for the social use of cannabis.

Another panel called “Legalization is an Economic Stimulus for All” will focus on “ways to cultivate an industry that is not going to box-out those who have felt the deepest effects of prohibition,” Strekal said, noting that some cannabis regulatory structures actually bar individuals with cannabis-related charges from participating in the industry, while others have included so-called equity provisions that would provide a portion of licenses to individuals from communities targeted by the War on Drugs.

For their Sept. 13 forum on veteran medical cannabis issues, the Indiana-based Hoosier Veterans for Medical Cannabis will be joined by other national veteran-advocacy organizations including Veterans Cannabis Group, Veterans for Medical Cannabis Access, Operation EVAC, and the North Carolina Cannabis Patients Network.

Jeff Staker, the lead organizer of the event and founder of Hoosier Veterans for Medical Cannabis, indicated that their forum is not only a pro-medical cannabis event — it’s also anti-opioid.

Veterans Administration doctors are prohibited from recommending medical cannabis – even in legal states – leaving veterans suffering from severe chronic pain few non-opioid pain management options.

“Within the U.S. one person every 20 minutes dies of either an accidental and or intentional overdose to prescription pain medication, Staker said in a statement. “Doing the math, that’s three every hour, 72 a day and so forth. It has been reported that our Veterans are overdosing at twice the rate of civilians … in other words two of the three causalities within the above hour time frame are veterans.”

Both organizations recommend that individuals unable to participate in the Washington, D.C. action contact their federal legislators and urge them to support cannabis-related amendments as the budget process moves forward.

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A large cannabis bud on a commercial, indoor plant.

Israeli and Canadian Firms Partner for Cannabis Production Plants in 4 U.S. States

8/30/2017

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Israel-based medical cannabis company Panaxia has partnered with Canada’s Bioceutical Corporation to set up four medical cannabis production plants in Arizona, Nevada, Maryland, and Massachusetts, according to a report from Globes. Last year, Panaxia set up a similar production facility in New Mexico, which went online in March.

The agreement will see Bioceutical Corp., which is traded on the Canadian Securities Exchange, will finance the project, provide the cannabis, and market the products. Panaxia will build and manage the plants and all of the other product inputs, save for the cannabis. According to the report, Bioceutical Corp. is already actively marketing products in Nevada and Arizona, and the two firms will jointly enter Massachusetts and Maryland.

Panaxia Managing Partner Advocate Assi Rotbart indicated that the company is already producing 10,000 units of sublingual tablets, oils, lozenges, and an inhaler per week at the New Mexico facility. Rotbart said the firm partnered with G.W. Pharma and Ultra Health in that venture.

“We discovered that we had incorrectly assessed the strength of the demand. The plant is now operating at full capacity… and we are in the process of expanding it,” he said in the report. “The factories that will be built under the new agreement will be much larger.”

Dr. Dadi Segal, founder and chairman of Panaxia, said the firm is also preparing to open a cannabis production facility in Israel under federal reforms.

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Text books and an electronic tablet sit on a desk inside of a school class room.

Aspen, Colorado School District Spend Cannabis Tax Money on Student-Focused Social Worker

8/30/2017

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The Aspen, Colorado School District has been granted $250,000 from the state’s cannabis taxes to employ an on-campus social worker for the next three years, the Aspen Times reports. The social worker will deal with both students and staff in pre-K through eighth grades, and some high school students.

Assistant Superintendent Tom Heald said it’s important for younger students to have contact with a social worker to help them deal with social pressures such as self-management, relationship skills, self-awareness, and responsible decision-making skills. Additionally, he said, for kids making the transition to high school it’s imperative that students understand the risks associated with drug and alcohol use.

“On the high school level we’d be more focused on intervention because there are some kids who may already have some involvement (in substances) and made some behavior choices around their use,” Heald said in the report,

Some cannabis tax money in the state has been earmarked for public schools, and last year was the first time schools received the full $40 million touted by activists during the legalization push. The Colorado Department of Education has also offered $40,000 in grants per school year derived from cannabis taxes for anti-bullying programs.

According to a 2016 National Survey on Drug Use and Health, cannabis use among Coloradans aged 12 to 17 dropped about 12 percent since legal cannabis sales commenced.

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An envelope of hundred dollar bills sits on a white surface.

Lerer Hippeau, Joe Montana-Linked Firm, Lead $4M Cannabis Technology Company Seed Round

8/30/2017

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Cannabis technology firm HERB has raised $4.1 million in seed funding led by Lerer Hippeau Ventures along with Liquid 2 Ventures, which counts National Football League Hall of Fame quarterback Joe Montana among its general partners.

Lerer Hippeau has previously invested in Buzzfeed, and were announced in April as leaders of a $3 million seed round for cannabis e-commerce startup LeafLink.

“With the trend quickly leaning toward national or even global legalization, we think it will be imperative that there is a reliable source of educational content, which will ensure that cannabis consumers are well-informed about the benefits as well as the risks of using the plant,” said Montana in a press release.

Matt Gray, founder and CEO of HERB, called the seed round “a monumental moment” for the company and “a testament to the shift of public view on the cannabis industry.”

“As we usher in a new and diverse demographic of cannabis consumers, investors are seeing the value in the cannabis industry and importance of having a reliable technology platform to educate and inform consumers,” he said in a statement.

According to the release, HERB will soon unveil new features for the platform, which currently provides cannabis-related content and information.

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A man holds a lighter to a loaded bowl of ground cannabis.

Alaska On-Site Cannabis Consumption Proposal Unveiled

8/29/2017

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Cannabis regulators in Alaska have released a draft for on-site cannabis consumption rules that would allow licensed retail stores to obtain an on-site consumption endorsement and allow use in a designated area. The proposal would require the area to be separated from “the remainder of the premises” either as a separate building or by a secure door, with its own ventilation system, if smoking were permitted by the retailer.

The measure would not permit on-site concentrate consumption, and retailers could only sell up to 1 gram of flower and edibles with 10 milligrams of THC or less for consumption on the premises. Food and beverage products containing neither alcohol nor cannabis would also be allowed to be sold in the designated area. Customers would not be allowed to bring their own cannabis products under the rules.

Alaska retailers would pay $1,000 for a new, or renewal, on-site consumption endorsement.

Municipalities would be allowed to protest the issuance of endorsements within 60 days of the Director of the Alcohol and Marijuana Control Board sending notice of an application in their jurisdiction. Local governments could also recommend the board impose conditions on site proposals, but it would be the responsibility of the municipality to monitor that those conditions are being met.

The state’s Marijuana Control Board will have a meeting Sept. 14-15, but the on-site consumption proposal will not be considered at that time because the plan’s 60-day public comment period will still be underway.

Update 8/30/17: A previous version of this article incorrectly indicated that the on-site consumption proposal would be considered during the upcoming Marijuana Control Board meeting in September.

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A beer tasting flight — a collection of a brewery's top offerings.

Vermont Brewers Partner with Hemp Farm for CBD-Infused Beer

8/29/2017

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Vermont-based Long Trail Brewing Company is partnering with local hemp cultivators Luce Farm on an infused beer using the farm’s CBD-infused honey. The yet-to-be-named small-batch brew is set for a Labor Day weekend release.

Ian Harbage, co-head brewmaster for Long Trail, said that while “there might be a bit of public learning curve” around the reception of the beer, the company anticipates “a lot of people will be as excited” as they are about the brew.

“We were very excited when approached by Luce Farm,” Harbage said in a press release. “We weren’t too concerned about the perception – to us, it sounded like a unique and interesting opportunity. It’s a great local connection and a chance for us to try new ingredients and learn from the process.”

Rebecca Pimentel, Luce Farm co-owner, called the collaboration “very exciting.”

“It’s an honor to be able to partner with our favorite Vermont brands to collaborate on new products and discover how best to introduce people to the benefits of CBD,” she said in a statement.

The offering will only be available during Labor Day weekend at Long Trail’s Bridgewater Corners tasting room. The owners of Luce Farm will also be on hand offering samples of their CBD-infused products.

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