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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A New York City taxi cab.

New York City Judge Sides with MMJ Patient in Taxi License Dispute

8/29/2017

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New York City‘s Office of Administrative Trials and Hearings (OATH) has overturned a Taxi and Limousine Commission (TLC) decision to rescind a TLC driver license over a failed drug test for cannabis because the license-holder is also a registered medical cannabis patient in the state.

“It is undisputed that respondent’s drug test showed that he ingested marijuana. However, because respondent obtained the marijuana legally, as a medical marijuana patient certified by the New York State Department of Health pursuant to the New York State Compassionate Care Act … [TLC] has not established that his drug test is “failed . . . as a result of illegal drug use,” as required by [law],” Administrative Law Judge Faye Lewis wrote in the decision.

The petitioner, identified as W.R. in the documents due to “the sensitive medical and mental health information,” discussed in the report, did not dispute the drug test; testifying that he had taken medical cannabis capsules “several times a day” since April to treat debilitating pain from neuropathies and diabetes. The 59-year-old petitioner testified that he has not driven a taxicab for at least seven years due to his health issues but wants to retain his TLC license in order to resume driving when he is ready.

Further, Lewis wrote, that “the Compassionate Care Act deemed status as a certified medical marijuana patient a disability under the State Human Rights Law, affording further protections to an employee or licensee.”

“It appears that respondent would also be protected by New York City’s Human Rights Law, which generally provides greater protections than the State Human Rights Law.” Lewis wrote. “As discussed above, because respondent’s use of medical marijuana was legal, there is no basis under the TLC rules to find him unfit to hold a TLC Driver License. Revocation of his TLC Driver License solely because of his status as a certified medical marijuana patient by New York State would be inconsistent with state and city law, and contrary to the TLC rules which specify that a failed drug test is the result of illegal drug use.”

Last month, the Massachusetts Supreme Court ruled that an employee, registered in the medical cannabis program, fired over a failed drug test could sue the employer for handicap discrimination.

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Maine Border Patrol Will Confiscate Cannabis in Accordance with Federal Law

8/29/2017

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Maine’s top Border Patrol official said that the agency would continue seizing cannabis products despite the forthcoming voter-approved adult-use legalization program, the Portland Press Herald reports. Chief Daniel Hiebert said the Border Patrol must follow federal, not state, laws.

Moreover, Hiebert indicated that Border Patrol applicants could be disqualified from employment consideration due to, not just their own cannabis use, but whether their family has ties to the cannabis industry; adding that at least one applicant was rejected because of a family member’s involvement in the medical cannabis industry.

Hiebert said that while Maine Border Patrol agents aren’t actively searching individuals for cannabis they would not ignore it if discovered.

“I don’t have the staff we are supposed to have to do our regular work,” Hiebert said in the report, noting that his staff has 183 agents, which is about 30 short of what is recommended to police the state’s border with Canada. “So border agents are being told that if you encounter marijuana, go ahead and seize it. But don’t go looking for it because that is not part of our primary mission.”

So far this year Border Patrol agents have carried out 19 cannabis seizures, and 117 total since 2012 – totaling roughly 720 pounds, Hiebert said. However, none of those seizures have resulted in a single prosecution.

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The sun shines through a New England forest, pictured here piercing the foliage just above the trunk of a fallen tree.

Feds Seek MMJ Patient Info from Northeastern States; Massachusetts Complies

8/28/2017

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Officials in Massachusetts have complied with a medical cannabis patient data request from the White House National Marijuana Initiative, but Gov. Charlie Baker indicated that none of the submitted information can be used to identify patients, CBS Boston reports. The information included the gender, age, and date of cannabis prescription for the state’s 40,000-plus registered patients but not specific medical conditions – which was requested by the federal task force.

The National Marijuana Initiative is a project contained in the High Intensity Drug Trafficking Areas program created by Congress in 1988. According to the report, other states were also sent requests for medical cannabis patient data. The NMI reports directly to the White House and not the Justice Department or Attorney General Jeff Sessions.

Baker said officials would not do “anything that is going to violate anybody’s privacy.”

Dan Quigley, deputy coordinator for the NMI, told the Boston Globe the request was part of a project researching whether there was a link between how states regulate medical cannabis and cannabis use among different age groups within the general public.

“There are no black helicopters warming up in the bullpen,” Quigley, a former Colorado police officer and cannabis legalization opponent said in the report. “I have no idea where this is going to take us yet.”

According to the Globe report, other states asked for medical cannabis patient information by the NMI include Connecticut, Rhode Island, Maine and Vermont.

Update 8/28/17: In an email to Ganjapreneur, it was confirmed by Marijuana Program Administrator Lindsey Wells that the Vermont Marijuana Registry also received and complied with the NMI request.

The provided information included the approximate number of medical cannabis applications Vermont has received each year, which has risen from just 566 in 2012 to a whopping 4,310 in 2016. The information also covered the average age of cannabis patients in Vermont, which has risen from approximately 50 in 2013 to 53 years old in 2016, as well as the most popular conditions cited for medical cannabis access — of which, unsurprisingly, chronic pain (1,205 cases) tops the list with cancer (167), Multiple Sclerosis (77), and nausea (46) trailing far behind.

However, Vermont does not track the gender of its medical cannabis patients.

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A cannabis worker holds up a handful of commercial-grade, trimmed cannabis nugs.

Netflix-Inspired Strains Pop Up in West Hollywood, California

8/28/2017

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The Netflix Collection, cannabis strains with names based on characters and themes from the streaming platform’s shows, were available over the weekend at the Alternative Herbal Health pop-up in West Hollywood, California, the Guardian reports. The products were available only to medical cannabis cardholders and Netflix did not profit from the sales.

Some of the strain names included in the line-up were Poussey Riot, from “Orange is the New Black;” Banana Stand Kush, taken from “Arrested Development;” Peyote 73, inspired by “Grace and Frankie;” Moon 13, for “Mystery Science Theater 3000; and Prickly Muffin, from “Bojack Horseman.”

Three of the 10 strains were available from the new Chuck Lorre-created comedy “Disjointed,” which is set in a dispensary and stars Kathy Bates. “Wet Hot American Summer: 10 Years Later,” “Chelsea,” “Lady Dynamine,” and “Santa Clarita Diet” were also represented in the product line.

“Each strain was cultivated with the specific shows in mind, designed to complement each title based on their tone,” a press release stated, noting that Poussey Riot was for “kicking it with somebody talking, and making mad stupid jokes.”

“For example, sillier shows may be more indica dominant, while dramedies will be more sativa dominant to help the more powerful scenes resonate.”

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A cannabis trimmer working at a commercial grow operation in Washington state.

Arkansas Advocates Estimate 500 to 600 Jobs in Cannabis Industry Short Term

8/28/2017

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Cannabis industry advocates expect cannabis cultivation, dispensary, and laboratory jobs to reach between 500 and 600 in the short term, with 1,500 eventually being employed in the state’s industry, the Arkansas Democrat-Gazette reports.

Storm Nolan, president of the Arkansas Cannabis Industry Association, said the number of jobs hinges “on how well [the state does] educating physicians and patients.”

“That’s not a small number, and as demand continues to ramp up, I see that number growing all the time,” he said in the report.

David Couch, the lawyer who sponsored the Arkansas Medical Marijuana Amendment approved by voters, indicated that ancillary businesses, such as seed-to-sale tracking systems, lighting, and construction firms, would greatly contribute to the long-term job growth in the state.

“It’s going to cost a couple million dollars just to build out a facility,” Couch said in an interview with the Democrat-Gazette. “You’re going to employ carpenters – construction people. Then you’re going to need security along with production and testing.”

The state Medical Marijuana Commission is permitting five cultivation facilities and 32 dispensaries; however the Department of Finance and Administration has received few applications from prospective companies. Northwest Arkansas News reported last week that the agency received its first two dispensary applications but a single cultivator has yet to apply.

Michael Pakko, Arkansas Economic Development Institute chief economist, said that while 500 to 600 jobs is “not a very large percentage” of the state’s workforce, the opportunities are “a big deal” to the local communities where the jobs will be available.

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The 4th Annual Emerald Exhange: A Cannabis Community Photo Essay

8/28/2017

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Walking into the 4th Annual Emerald Exchange was the beginning of a spiritual experience. Tucked quietly on a private farm in the center of Moorpark’s breathtaking southern California terrain, this cannabis market has become one of California’s premier events for resource and information exchange, education, revelation, and fun in the cannabis community.

If you are looking for an intimate, holistic approach to defining your own creative health — then the Emerald Exchange is absolutely for you.

Tents and teepees pepper the landscape as conscious cannabis consumers move from vendor to vendor, discovering the latest in products and holistic healing options. This event doesn’t have the standard “green rush” vibe but more of a peaceful gathering for people with a deep affection for, and responsibility to, both the plant and the land it grows in.

Here, farmers are alchemists, offering beautiful strains in their commitment to provide the best product from the ground up. In a frenzied market where people are clamoring to cash in, these farmers are solely focused on the principles of their generational forefathers — growing true to the spirit of how God intended it to be.

Some techniques showcased over the weekend included:

  • Companion planting
  • Soil building
  • Creating micro climates
  • Outdoor sun grown harvests
  • Dry farming

It is clear the intent is to foster the direct connection between Modesto County, the Emerald Triangle, and Northern California growers to provide the country’s best cannabis practices. The event is more than a showcase, it’s an inclusive experience.

They say a picture is worth a thousand words, so I’ll let the following photographs by Kaylia Boshard do most of the talking.

Farmers and business owners from all over the region brought their innovative products and packaging. As a branding and marketing gal, I was incredibly impressed with the creative displays at the event.

Never one to miss out on an opportunity to share good eats, I indulged in the incredible variety of food and beverage choices throughout the market.

There was no shortage of creative expression in this budding creative culture. From artists to musicians, chefs, and innovative scientists — the playlist of interesting creatives was quite full. Even with all there was to do at the event, I knew I had to spend a moment to just relax and take it all in.

In short, the event was a smashing success. One thing is certain — the culture of cannabis is evolving quickly and the future looks bright and healthy.

 

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Looking up between sky scrapers in New York City.

New York Firm Partners with MS Researcher for Phase 2 FDA-Approved Study

8/28/2017

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MMJ Bioscience has partnered with the executive director of the New York State Multiple Sclerosis Consortium, Dr. Bianca Weinstock-Guttman, on a Food and Drug Administration-approved study testing the potential therapeutic applications of medical cannabis for multiple sclerosis patients.

Weinstock-Guttman also serves as a Professor of Neurology at the State University of New York at Buffalo. She will serve as the principal investigator for MMJ Bioscience, an MMJ International Holdings affiliate.

Tom Ryan, MMJ Bioscience COO, indicated the partnership marks the initiation of their Phase 2 clinical trial for an Orphan Drug Designation from the FDA. Orphan drug designation is given to medicines that are found an effective “treatment, diagnosis or prevention” for conditions that affect fewer than 200,000 people.

“MMJ BioScience’s discovery of a novel cannabinoid pharmacology through our network of world leading scientists, our intellectual property portfolio, proprietary formulations, contract processing, and regulatory expertise uniquely position us to develop and manufacture plant-derived cannabinoid formulations at sufficient quality and uniformity according to the FDA regulatory requirements for pharmaceutical development,” he said in a press release, adding that successful Phase 2 trials could lead to an FDA fast-track designation.

The National Multiple Sclerosis Society supports the use of medical cannabis by patients and has called for more in-depth research on its use.

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Roger Stone Calls CWCB Expo Boycott ‘Smear Campaign’

8/25/2017

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Roger Stone has responded to the boycott of the Cannabis World Congress and Business Expo by at least 30 exhibitors and speakers due to his involvement, telling LA Weekly that the protest is based on the “recycled” and “phony charge” that he is a racist and that it is organized by his enemies, namely David Brock, the founder of Media Matters for America.

“To be clear this manufactured ‘boycott’ is agitprop astro-turf, with all the usual trolls and bots featured in a heavy-handed but obvious smear campaign waged by David Brock and his minions,” Stone, who founded the United States Cannabis Coalition in June, wrote in an email to LA Weekly. “I will not be silenced in the fight for states’ right to legalize a medicinally beneficial plant that helps millions of Americans.”

Moreover, Stone said the boycott is happening “despite my longtime activism in opposition to New York’s draconian, racist Rockefeller Drug Laws dating to a speech I made at the Countdown to Justice Rally in New York City in 2003. Other speakers included Russell Simmons and Rev. Al Sharpton. My critics propose censorship.”

Jesce Horton, co-founder and chairman of the Minority Cannabis Business Association, which has led the boycott, said Stone’s “assertion that this is a smear campaign waged by his enemies is exactly the type of dismissive behavior he has displayed toward communities of color and women for years.”

“The idea that cannabis business owners and activists can’t assess for ourselves his deplorable rhetoric and his camp’s self-serving intentions in the cannabis industry is sad,” he said in the report.

CWCB Expo organizers have indicated Stone will deliver his keynote as planned despite the boycott.

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A cannabis bud under the purple glow of indoor LED grow lights.

California Gov. Appoints Three to Bureau of Cannabis Control

8/25/2017

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California Gov. Jerry Brown has made three appointments to the state’s Bureau of Cannabis Control, including Melanie Ramil, the deputy state director for U.S. Sen. Kamala Harris, the Daily Democrat reports.

Ramil, 35, the youngest of the three appointees, previously serving as a field representative for California state Assemblyman Dave Jones from 2006 to 2011, special assistant to the insurance commissioner from 2011 to 2013, and the chief of external affairs at the Community Programs and Policy Institute Branch at the California Department of Insurance from 2013 to 2017 before joining Harris’ staff.

Ricardo DeLaCruz was appointed by Brown as the assistant chief of administration for the agency; he has served as Department of Consumer Affairs’ human resource chief since 2015. From 2014 to 2015, DeLaCruz held the position of personnel officer for the state Department of Rehabilitation, and from 2006 to 2014 held several human resources positions at the Department of Motor Vehicles.

Brown also appointed Andre Jones to the bureau, who served as labor organizer and recruiter for the American Federation of Labor and Congress of Industrial Organizations from 1993 and 1994, before moving to Progressive Campaigns as their Bay Area campaign director from 1994 to 1996. From 1996 to 1997, Jones served as a campaign consultant for the San Francisco 49ers and was a senior associate at Martin and Glantz from 1997 to 1999. From 2004 to 2007 he led the Hearts and Minds Alliance as executive director before moving into the public sector as Oakland Mayor Rebecca Kaplan’s chief of staff from 2008 to 2016. Since 2016, Jones has been a regional director for the Charter Schools Association.

Ramil and Jones are both Democrats, while DeLaCruz is registered without a party preference.

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Queensland, Australia Advances Plan to Allow Hemp Products for Human Consumption

8/25/2017

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The Queensland, Australia government has introduced legislation to amend the Drugs Misuse Act of 1986 to allow the cultivation of hemp seeds for human consumption. Agriculture and Fisheries Minister Bill Byrne said the reforms “would provide investment and trade opportunities for Queensland producers.”

“By allowing industrial cannabis seed to be grown for human consumption, there are opportunities for producers to supply low THC hemp seeds to domestic and international markets,” he said in a press release. “This emerging market will enable the Queensland producers to compete at a global level and has the opportunity to create growth and employment in this industry.”

The legislation follows an April decision by the Australian and New Zealand Ministerial Forum on Food Regulation to allow the seeds to be sold as food, but the decision needs to be codified by an amendment to the Drugs Misuse Act.

Australian Health and Services Minister Cameron Dick said the legislation would also “continue restricting the growth of cannabis to licensed producers … [and] provide more robust requirements for monitoring cannabis growers” to ensure “high-quality seed is made available to the public.”

The plan would see products for human consumption derived from hemp available in Queensland no later than mid-November.

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National Institute of Health Awards New York Researchers MMJ-Opioid Grant

8/25/2017

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The National Institutes of Health has awarded a $3.8 million research grant to Albert Einstein College of Medicine and Montefiore Health System for a long-term study to investigate whether medical cannabis treatment can help reduce opioid use for adults with chronic pain. The institutions will partner with Vireo Health of New York to enroll New York state medical cannabis patients.

Ari Hoffnung, Vireo Health of New York CEO, indicated the study will be first federally-funded project the firm has participated in.

“We applaud the NIH – a federal agency – for funding a grant which represents an innovative collaboration between state-licensed medical marijuana companies and leading healthcare and research institutions,” he said in a press release.

The study will enroll 250 HIV-positive and HIV-negative adults with chronic pain who currently use opioids and are registered with the state’s medical cannabis program. The patients will complete web-based questionnaires bi-weekly over the course of 18 months focused on pain levels and their medical and illicit use of opioids and cannabis. Participants will also submit blood and urine samples during an in-person screening every three months and report their perceptions of how their medical cannabis use affects their opioid use.

“As state and federal governments grapple with the complex issues surrounding opioids and medical marijuana, we hope to provide evidence-based recommendations that will help shape responsible and effective healthcare practices and public policies,” said Dr. Chinazo Cunningham, associate chief of general internal medicine at Einstein and Montefiore, and principal investigator on the grant, in a statement.

The NIH grant is titled “Does medical cannabis reduce opioid analgesics in HIV+ and HIV- adults with pain?”

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Report: Hemp-Derived CBD Market Could be $1B Industry by 2020

8/24/2017

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Hemp-derived CBD sales reached $170 million in 2016 and the market is estimated to hit a billion dollars in the next three years, according to a Brightfield Group report outlined by Forbes. Brightfield estimates the industry will experience a 55 percent compound annual growth rate over the next five years.

Bethany Gomez, Brightfield director of research, explained that “one of the most surprising” aspects of the study “was how many companies are currently operating in the space, and how few of them are generating significant revenues.”

“Essentially everyone is trying to do hemp, but only a handful are doing it well,” she said in the report. “It’s seen as easy because it can be sold online but, with restrictions on traditional marketing, it is very difficult to connect with your core consumer and even communicate why they need your product.”

The research found that the bulk of sales, 64.5 percent, are through online channels, followed by 17.8 percent at smoke shops, with 9 percent of sales coming from dispensaries. The remaining sales are through doctor’s offices.

CW Hemp, produced by CW Botanicals, has a 7 percent market share, while PlusCBD Oil, manufactured by CV Sciences is second with a 5 percent market share. Elixinol, HempMeds, and CannazALL each comprise 2 percent of the market – the remaining market is shared by companies with relatively low sales.

The top 20 brands averaged $2.1 million in annual sales in 2016.    

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Russian Banking Pioneers Betting on U.S. Cannabis Reforms

8/24/2017

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Two Russian banking pioneers are envisioning sweeping cannabis reforms in the U.S. and are bringing the same attitude to the industry that they had during the fall of the Soviet Union and its transition to capitalism.

In an interview with Bloomberg, Boris Jordan, who co-founded Renaissance Capital more than 20 years ago, equated the cannabis industry to “Russia in the 1990s.”

“We’re talking about an industry in its infancy that needs to be built up from scratch, legislation and all,” he said in the report. Jordan and his private equity firm, Sputnik Capital, have spent more than $100 million to position PalliaTech Inc., which Sputnik acquired in 2015, to become a national dispensary chain. Jordan indicated he was on track to raise another $200 million for a new fund to invest in other industry opportunities.

“Our dispensaries look like Walgreens,” Jordan explained in the interview. “They’re filled with oils, pills, and creams.”

PalliaTech was one of five companies recently awarded a medical cannabis license in New York.

Bernie Sucher, who co-founded Troika Dialog and now serves as co-owner and CEO of Tikun Olam USA – which currently operates in Washington, Nevada, and Delaware – said the only qualification he has to act as CEO is his “Russian experience of taking an idea and building it into a real business in volatile, even anarchistic conditions.”

“It’s a modern-day gold rush,” Sucher said in the interview. “It makes me nostalgic for what it was like starting Troika 25 years ago. But this time nobody’s getting hurt.”

Tikun Olam’s Israeli arm is the country’s largest supplier of medical cannabis and the U.S. firm has invested $9.3 million in its efforts to market its propriety cannabis strains to cultivators.

The cannabis industry risks and rewards in the U.S. do mirror Russia’s 1990s capital markets – which were devastated by the nation’s domestic debt default in 1998. If the federal government were to clamp down on the industry investments would be lost.

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Massachusetts Gov. Appoints Cannabis Legalization Opponent to Control Commission

8/24/2017

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Massachusetts Gov. Charlie Baker has appointed state Sen. Jen Flanagan to the state’s Cannabis Control Commission, the Boston Globe reports, his second appointment of a cannabis legalization opponent to oversee the industry. Earlier this month Baker appointed Walpole Police Chief John Carmichael Jr. to the Cannabis Advisory Board; Carmichael has said that medical cannabis dispensaries would be fronts for “illegal distribution and money laundering.”

Flanagan, a Democrat, was one of 119 state lawmakers that opposed Question 4, calling cannabis legalization “the wrong path for the state” as the country is mired in the so-called opioid epidemic. In a statement from Baker’s office, however, she said she was “honored” to receive the appointment. She is the first of five commissioners to be appointed to the CCC.

Baker called Flanagan “a champion and important partner with us on bipartisan efforts to enact comprehensive legislation around substance use prevention, treatment and recovery.”

“Her experience and service will be invaluable . . . as [officials], educators, and public health and safety professionals work together to ensure the effective, responsible and safe implementation of the adult use of marijuana,” the governor said in a statement.

Jim Borghesani, the communications director for the legalization campaign, said advocates “hope that Sen. Flanagan will put her personal position aside in order to advance the will of Massachusetts voters.”

According to the Globe, Flanagan is expected to resign from her state Senate seat by Aug. 31.

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Looking up the walls of a glass office building.

MassRoots Acquires CannaRegs in $12M Stock Deal

8/24/2017

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MassRoots Inc. is continuing to expand its scope, announcing that they have struck a deal to purchase CannaRegs, a technology platform that tracks federal, state, and municipal cannabis regulations, for $12 million in stock. The deal follows MassRoots’ July acquisition of regulatory compliance firm Odava Inc., and a December 2016 transaction that saw the company procure DDDigital, the firm behind online canna-business ordering platform Whaxy, and custom application developer Cannabuild.

CannaRegs was founded in 2014 by former Federal Reserve regulator Amanda Ostrowitz, and has more than $450,000 in contractually-obligated annual revenue.

Isaac Dietrich, MassRoots CEO, said the deal “expands MassRoots’ compliance offerings, consolidating the most important operations for cannabis businesses into one central platform.”

“We expect with MassRoots’ resources and relationships, we can grow the number of businesses utilizing CannaRegs and significantly increase MassRoots’ contractually-obligated monthly recurring revenue,” he said in a press release.

Amanda Ostrowitz, CannaRegs founder and CEO, said the acquisition will allow CannaRegs to “be able to realize strong synergies” in the platform’s development and distribution.

“The cannabis industry is increasingly becoming compliance-centric and even minor changes in municipal regulations can have a significant impact on day-to-day operations,” she said in a statement. “CannaRegs has made it easy for businesses, regulators and attorneys to track regulatory changes in real-time, often for less than the cost of one billable hour.”

CannaRegs currently provides comprehensive cannabis laws for California, Colorado, Florida, and Nevada and plans to expand to other states with legal medical or recreational cannabis programs.

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Sponsors and Speakers Dropping from CWCBExpo Due to Roger Stone Keynote

8/23/2017

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A Minority Cannabis Business Association boycott of Roger Stone has led to an exodus of exhibitors and speakers from the Cannabis World Congress and Business Expo set for Sept. 13-15 in Los Angeles, California. Stone, a former campaign strategist for President Donald Trump, was invited to speak at the event after launching the bi-partisan United States Cannabis Coalition in June.

A Change.org petition has also been launched urging the expo to “Disown Roger Stone.” According to an LA Weekly report, Bonita “Bo” Money, a co-signer of the petition, indicated that 30 speakers and exhibitors have dropped out, calling Stone’s inclusion “horrible timing” following the events in Charlottesville, Virginia.

“Stone’s position on cannabis is positive but does not excuse his hateful statements and actions taken against women, people of color, Jewish people and other vulnerable populations,” the petition, which has reached half its signature goal as of 8 a.m., states. “Inviting Mr. Stone to speak to the crowd, especially as we see the rise of overt racism and anti-Semitism, is an affront to the very movement you purport to promote, the industry and all who are involved.”

The petition, which lists some of Stone’s “hateful statements,” is signed by several major players in the industry, including New Frontier Data, the Marijuana Business Association, and Students for Sensible Drug Policy.

Jesce Horton, co-founder and chairman of the MCBA, said Stone should be automatically disqualified from speaking at the event due to his work on the campaign of President Richard Nixon, who launched the so-called War on Drugs. Furthermore, Rev. Al Sharpton is scheduled to speak at the event and Stone once referred to Sharpton as a “professional Negro.”

“If we’re going to make this a better industry, we have to be careful about the compromises that we make,” Horton said in an email to LA Weekly, “To prop up someone with such a history of racist and misogynist rhetoric as a keynote speaker at this event makes it impossible for MCBA to be involved.”

The Drug Policy Alliance, who announced they were withdrawing their sponsorship from the event due to Stone’s inclusion, said they made the decision “to stand in solidarity” with their “allies and community partners.”

In an open response to the petition, organizers at the CWCB Expo defended Stone’s inclusion, writing:

From its inception four years ago, the Cannabis World Congress & Business Exposition’s mission has been to provide an open forum for the advancement and growth of this industry. To achieve this goal we always have been inclusionary and have provided an open and unbiased, educational and business platform for the diverse voices and opinions in this industry to be heard.

Roger Stone is a proponent of cannabis legalization. He has created a non-profit, bi-partisan organization to advance the legalization of cannabis. Roger Stone has assured us that his Los Angeles Keynote Address will be on point with our stated mission, as it was this past June when he delivered his Keynote at CWCBExpo in New York. Mr. Stone will be present at CWCBExpo in Los Angeles, before and after his keynote, to have an open dialogue with our attendees.

Not everyone is on board with the Expo’s “inclusionary” stance, however. In a post on Facebook, David Murét of Viridian Staffing wrote: “CWCBE is more than free to make terrible business decisions and reveal to the industry and movement where they’re willing to stand when the chips are down. Likewise, it is totally legitimate and in-keeping with respect for free speech for current and future speakers, exhibitors and sponsors to vote with their wallets and feet by choosing to have no part of it.”

The calls for Stone’s removal from the CWCB Expo’s lineup have highlighted a growing rift in the cannabis industry: the clash between white collar capitalists and the civil rights activists who created the opportunity for this industry to exist in the first place.

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Ohio Awards MMJ Seed-to-Sale and Licensing Contracts

8/23/2017

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The Ohio Department of Commerce has awarded contracts to two firms as the state rolls out its medical cannabis program – one to a seed-to-sale software and tracking system company, and another to handle “the design, development, and implementation” of cannabis cultivation, processing, and laboratory licenses, Columbus CEO reports. The two contracts total $1.75 million.

Metrc, based in Lakeland, Florida, was awarded the nearly $1.2 million seed-to-sale contract, beating out four other companies vying for the contract. The $573,600 licensing contract was awarded to Persistent Systems Inc, which has an office in Dublin, Ohio. Three other companies submitted bids for the contract.

A third contract for an “open video management system,” which will see more than 1,000 cameras located in cannabis growing, processing, and distribution facilities, is expected soon. The system will allow the camera feeds to be monitored from a single location.

In all, the Office of Budget and Management has authorized a $9.8 million operating budget for the medical cannabis program from loans and the bi-annual state budget. Officials expect $2.3 million in income from the program through employee licenses and application fees. The program does not allow smokeable products, opting instead for edibles, vapor-products, tinctures, topicals, and patches.

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Larimer Square in downtown Denver at twilight.

Denver, Colorado Set to Accept Public-Use Applications by the End of the Month

8/23/2017

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Denver, Colorado officials are expected to begin accepting public-use license applications by the end of the month; however the pilot program might not take off due to restrictions on what kinds of businesses can qualify for the licenses and where they can be located, according to an Associated Press report. The regulations do not permit establishments to sell cannabis products but allow customers to bring their own.

Under the rules, any business with a liquor license cannot apply for a public-use permit, and dispensaries are prohibited from allowing consumption on store premises. Would-be cannabis clubs or businesses wishing to obtain a license must be located twice the distance from schools – or places where children congregate, such as playgrounds – as liquor stores. Neighborhood groups must also agree to allow the club or license before it is opened or issued. Applying for a license costs $1,000 and another $1,000 annually to maintain.

Kayvan Khalatbari, a Denver cannabis consultant who helped campaign for the social-use initiative, has sued the state’s liquor authorities over the ban on allowing cannabis and alcohol at the same place. He pointed to the fact that people are allowed to get “hammered in public” on “moronic bike bars” that are permitted to ride past schools and churches but cannabis consumers don’t have “a safer choice” despite the will of the voters who passed the initiative.

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