A nighttime time lapse of Highway 110 in downtown Los Angeles, California.

Los Angeles Releases Rec. Industry Draft Rules

6/09/2017

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The city of Los Angeles, California has released the draft rules to regulate the forthcoming recreational cannabis industry, imposing restrictions on where cannabis businesses can operate, outlining application requirements, and prohibiting cannabis from being consumed on site, according to a Los Angeles Times analysis of the proposal.

The draft rules limit cannabis companies to operating in most commercial and industrial zones, and bars them from operating within 800 feet of one another. Dispensaries would be banned from operating within 800 feet from parks, schools, public libraries, and drug and alcohol treatment facilities. All businesses would be required to have security and video surveillance, and undergo audits and inspections.

The rules stipulate that businesses must have a plan for hiring local residents and if they have at least 10 employees they must employ a “labor peace agreements” which prohibits employers from interfering with labor organizing by employees.

According to a Canna Law Blog analysis, existing dispensaries that are compliant under the current medical cannabis regime would be the only permitted retail outlets until the general application process opens in Phase 3 – after non-retail and social equity program applicants are approved. Social equity programs are aimed at providing members of communities disproportionately policed for cannabis crimes preferential licensing under legal cannabis regimes.

Rubin Honig, executive director of the Los Angeles Cannabis Task Force, called the draft regulations “a good step forward” but warned that “many existing and new businesses in L.A. will face long delays before they can apply for a city permit and legally operate.”

City Comptroller Ron Galperin estimates that the city could collect at least $50 million in cannabis tax revenues next year and citywide sales could approach $700 million. The draft rules will be available for public review and comment for 60 days before officials take any action.

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A large quantity of hundred dollar bills splayed out on a table.

Oregon Economist Finds First-Year Cannabis Sales On Pace with Colorado’s

6/09/2017

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The Oregon Office of Economic Analysis has released its forecast for the state’s recreational cannabis revenue, projecting $156 million in cannabis industry taxes over the next two years, according to a Willamette Week report. State economist Josh Lehner’s report indicates that Oregon’s first-year sales closely track Colorado’s first year but “outpaces Washington’s.”

Lehner suggests that Oregon’s strong first year over their northern neighbor is due to four factors: Oregonians simply consume more cannabis than Washington citizens, the state imposes fewer taxes on cannabis products, which leads to Washington residents buying from Oregon shops, and the state has large concentrations of dispensaries in the biggest cities.

Lehner does not anticipate Oregon’s second and third years keeping pace with Colorado.

“On the downside, supply constraints that keep products and inventory low will result in fewer sales, and tax collections,” Lehner writes in the report. “Another downside risk for tax collections are prices, given Oregon levies the tax based on the sales price. To date in Colorado and Washington, prices have fallen around 20 percent per year. Marijuana is a commodity and eventually will be commoditized.”

Lehner also wrote that a federal crackdown on legal cannabis markets is unlikely.

“While there has been no clear warning or action taken,” he writes, “there is a non-zero chance the federal government could step in and eliminate, or severely restrict recreational marijuana sales. In this event, taxes collected would be considerably less than forecasted.”

The next forecast is due out in August, which will include updated figures if the legislature passed any cannabis-related legislation.

End

Kristi Knoblich Palmer: Navigating New Regulations in California

6/09/2017

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Kristi Knoblich Palmer is the COO of Kiva Confections, a pioneering force in California’s cannabis edibles marketplace, and is a founding member of the California Cannabis Manufacturers Association (CCMA).

In the following episode, Ganjapreneur.com podcast host TG Branfalt speaks with Kristi about the founding of Kiva Confections, training to become an expert chocolatier, and California’s medical (and soon-to-be recreational) cannabis industry’s scramble towards a regulatory structure. The two also discuss the growing trend of micro-dosing cannabis, the founding and current goals of the CCMA, and much more.

Listen to the podcast interview below, or continue scrolling down to read a full transcript of this week’s episode.

Listen to the podcast:

Read the transcript:

TG Branfalt: Hey there. I’m your host TG Branfalt and you’re listening to the Ganjapreneur.com podcast where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today I’m joined by Kristi Knoblich Palmer. She is the chief operating officer of Kiva Confections and the founder of the California Cannabis Manufacturers Association.

How are you doing this morning, Kristi?

Kristi Knoblich Palmer: I’m great. How are you?

TG Branfalt: I’m well. I’m well. Sort of celebrating West Virginia’s success yesterday. They’re knocking on the door of medicinal. It just needs to be signed by the governor so you know, the 26th state. Looking good today, huh?

Kristi Knoblich Palmer: Looking good. We have a lot to celebrate this week. We really do.

TG Branfalt: Excellent. So I want to get right into it. Tell me a little bit about yourself, your background, and how you got started in the cannabis space.

Kristi Knoblich Palmer: Certainly. Yeah, so my partner, Scott, and I, we’re now partners in business and partners in life. We started off in 2010, starting Kiva as a business out of our home, in our home kitchen in the Bay Area here, California. Really we saw an opportunity for a better cannabis edible.

There wasn’t anything out there that was packaged professionally or labeled, nothing that we would want to bring home or, I always put things through the mother-in-law filter. There were no products out there that I would give to my mother-in-law.

Yeah, we got started with the testing labs. I’m developing formulas, and a brand, and a design for our company. We’ve grown it from there.

I don’t have a background in food science, or I’m not a baker, anything like that. Scott and I actually met in photography school in Santa Barbara. I guess we are just opportunists, I would say.

TG Branfalt: I had read that you were actually mentored by an Ohio chocolatier at a 100-year-old factory?

Kristi Knoblich Palmer: Yeah. Yeah. Yeah, so we started our company with the chocolate bars and we got feedback. People use their hands. Of course, you can’t see but they were indicating little pieces. They’d hold one hand in a cup and then they’d use the other one and indicate, “Oh, we want little pieces for your next product.”

We took that feedback and started looking at a chocolate-covered center. Scott loves chocolate-covered espresso beans so we thought we’d start there.

TG Branfalt: As do I.

Kristi Knoblich Palmer: Yeah, right? Who doesn’t? So that would allow us to, for the first time, really breakdown the dose. Get just a small amount of THC so that people could pop off the lid, eat just one, and go from there.

That product is particularly difficult to make so we went out and learned from who we dub “the panning guru” out of this really old chocolate manufacturing facility, which I think at that time we were in 2,500 square feet. They were in like 100,000 square feet.

So when we got to the facility we couldn’t believe our eyes but we spent a couple days out there. Actually, it wasn’t a couple days; it was one day. The apprentice for the guy who was teaching us, the apprentice, he laughed when we got there. He said, “There’s just no way you are going to learn to pan in a day.”

But we took studious notes and we brought the knowledge, what little knowledge we had adsorbed, and then made our period back to the Bay Area and started practicing, and eventually got it down to an art as well.

TG Branfalt: So did you tell them that you were going to introduce, that you were making a cannabis-infused chocolate?

Kristi Knoblich Palmer: We did, yes.

TG Branfalt: And what was the response?

Kristi Knoblich Palmer: Well, Kevin was really excited. Kevin was the panning guru, kind of a hippy sort of guy, and a little rough around the edges, great personality. He thought it was awesome and he was particularly excited when we invited him out to our facility to continue to train our team and to work with us on our equipment. It paid off for him in a few ways.

TG Branfalt: I want to kind of go back a little bit. I love that story. That’s why I kind of wanted to get to that early but when you started out in 2010, you know you said you don’t have a background in food science, you’re not a baker. How did you overcome some of the early challenges, not just with building the business but also with complying with regulations and that sort of thing out in California?

Kristi Knoblich Palmer: Complying with regulations was very simple because there weren’t any. That was a pretty low bar to cross.

You know, back in 2010, cottage and home-based businesses were the way to do it. We were fortunate. I grew up in the Bay Area so Scott … in a house that I grew up in. It was 2010; we were young and we didn’t have lot to lose.

We didn’t own homes, no kids. We weren’t married or anything so we didn’t have very, we couldn’t really go much further down. There was only up to go.

So with lots of roommates and family support, we put our family to work for us and paid them in chocolate and pizza.

We got going from there. Some of the hurdles, I would say a lot of the hurdles that exist today absolutely did not exist back then. That’s part of what motivates me and motivates us and I think the other members of our association as well, is because we all got to get started in an environment that was basically unregulated.

It encourages mom-and-pop, small businesses, home kitchen entrepreneurs who are looking for something different and have a lot of passion but maybe not a lot of expertise or money to become compliant.

TG Branfalt: How did you adapt? Like how did you adapt to the regulations?

Kristi Knoblich Palmer: Well, in California we really still don’t have regulations, which when I say that out loud it sounds crazy because we have medical laws that were signed by the governor. And then now we have recreational laws that were voted in.

Now we have a bill that it’s going to bridge the gap between the two but we still really don’t have anything that’s telling. We still don’t have that playbook.

We don’t have guidance on how many milligrams of THC should be in a product. We don’t have guidance on what kind of testing we should do and at what point in time. So there’s still a lot of gray area.

How have we been able to “become compliant”? You know, we’ve created our own standards along the way and basically it’s what you would do in the food world, right?

So Lay’s potato chips cannot brag about their food safety program because that’s just what consumers come to expect. Cannabis is not that way so we still can talk about and use in our sales pitch, essentially, that our products are safe for consumption, which is mind-boggling when you think about it.

You think about how many products just our company makes, and the numbers of the association, and throughout the state. So the businesses here are hungry for regulation and a playbook that we’ve been lacking for so long.

TG Branfalt: I want to talk to you a little bit about the edibles scene. In a Fast Company report, you had said that the edible market is 30 to 50 percent parents with full-time jobs and kids. Yet opponents say infused edibles, infused candies put children at risk.

Are you confronted often by parents about these sort of fears? And what do you tell them to alleviate those concerns?

Kristi Knoblich Palmer: You know what? You hit on a great question. As you know, in California, as I just explained, we do not have regulations for packaging and for marketing, right? So our company’s approach has been to really scale that back and create products that are very professional, and communicate with the intended consumer.

We don’t need friendly animals and things like that to convey a message to the consumer about responsibility. I use this as an argument for sensible regulation because the number of phone calls that we have received in our six years about children getting into cannabis: I can think of only one instance in six years.

So to me, the problem? I think it’s absolutely we need to protect children from edibles. I don’t think anyone can argue that we don’t need to do that because edibles are very potent and for all the sensible and logical reasons, we don’t want children getting into edibles.

But I actually don’t think that the problem is with our zero to five-year-olds. I think the problem exists more with teenagers. Childproof packaging and these kind of skull-and-crossbones on very onerous regulations don’t really speak to that crowd.

When parents come to us with their concerns, usually the majority of the feedback that we get are concerns around dosing, from parents who are using cannabis to treat children with autism or epilepsy. The stories and the feedback that we hear from parents often bring you to tears because their kids are developing into adolescents and young adults in a way that they haven’t been able to with traditional ways of treating the illnesses that they have.

TG Branfalt: And with those cases are you recommending more of a micro-dose or is it case-by-case sort of thing? And then kind of on the same thing is are you seeing trends towards micro-dosing?

Kristi Knoblich Palmer: Yes. Of course, I’m not a doctor so I can’t exactly make a recommendation. But what we do with our products and where edibles are going to be headed in the future is they will be uniform in content.

Once somebody figures out what works for them, and we always recommend people start very small with five milligrams or less, learn their dose, learn their body, and understand what feels comfortable and what’s working for them before they scale up and take anymore.

Yes, I think the trend towards micro-dosing is something that we saw back when prohibition was lifted. When you’re in a prohibition there is a natural desire for products that are very high in potency. They’re hard to get so you might as well get as much bang for your buck as you can and as much value as possible.

I don’t know about you but I don’t shop that way in my normal life. When I buy a bottle of wine I’m not looking at alcohol content and dollars per alcohol content. We buy brands, we buy Appalachians, we buy labels, whatever it is that speaks and works for you.

So yes, I think the trend towards micro-dosing and lower, more responsible cannabis consumption is alive and well out there in the industry and it’s just going to continue to pickup even more speed.

TG Branfalt: Micro-dosing, is that part of the drive behind that 30 to 50 percent market that you had said made up the edibles market?

Kristi Knoblich Palmer: Yeah, I think that segment of the market is looking for reliability. They’re parents. They’re employed. They need to go to bed at ten PM and wake up at six AM.

If you’re experimenting with edibles there’s a chance that you could not be able to fulfill the responsibilities that you have as a busy, responsible individual. We’ve tried to just, with our company and I think the industry is moving this way as well, just provide a reliable experience for people so that they can get done what they need to get done and they have a positive experience with cannabis.

TG Branfalt: I’m a huge proponent of micro-dosing. I just want to say that. I have said this in a couple of interviews now but I didn’t realize that that’s something I was doing, kind of on my own. It would be like, “Oh, I’m going to have this five-milligram gummy and it’s going to make me feel great, especially when I have to like go out in an anxiety-inducing situation.”

So I really commend the manufacturers who are recognizing that there is a population that really, really doesn’t want the 120-milligram bars and does want that 5-milligram, I really do commend you guys.

Kristi Knoblich Palmer: Thank you. Yeah, absolutely. We just are experimenting still here, really. So yeah, the feedback seems to be really, really positive around micro-dose products right now.

TG Branfalt: I want to talk to you a little bit about your role at the California Cannabis Manufacturers Association but before we get to that we’ve got to take a short break. This is the Ganjapreneur.com podcast, I’m TG Branfalt.

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TG Branfalt: Welcome back to the Ganjapreneur.com podcast. I’m your host TG Branfalt here with Kristi Knoblich Palmer, Chief Operating Officer of Kiva Confections and Founder of the California Cannabis Manufacturers Association.

Before the break, we were talking just a bit about the products that you make and the trend of micro-dosing in confections and edibles but I want to talk to you about your role at the California Cannabis Manufacturers Association. Why don’t you tell us what the CCMA does and why it’s important?

Kristi Knoblich Palmer: We formed this group so that we could specifically target the regulations, or the MRSA regulations, our medical system, that basically was going to force manufacturers to not be allowed to hold a distribution license. That was shocking and alarming that that was going to be allowed because that’s just not the way that the industry has worked in California up to this point.

That was really the genesis of the association, was to tackle that specific issue. There’s been some positive energy around that and things look like they are coming out in our favor.

Of course, it’s not over until it’s over so we’re going to continue to work on that issue but we will also pivot and work on other issues that are equally as important as regulations are implemented.

TG Branfalt: When you mention not being able to hold a distribution license you’re referring to vertical integration. Am I correct?

Kristi Knoblich Palmer: Correct.

TG Branfalt: Under Prop. 64 vertical integration is allowed, meaning that cultivators and manufacturers can distribute their products. That’s something that’s been supported by the governor as recently as this week but not law enforcement. Obviously you support the plan but why do you support this plan as opposed to the competing proposal that would require third parties to transport cannabis products?

Kristi Knoblich Palmer: Back in 2010 and really up until about the last 2 years, the only way for a manufacturer to get its products to market was to distribute it. You couldn’t call a cannabis distribution company and start a relationship. Basically there were no distributors to hire.

That was the model that was established by, really, most manufacturers that have been in existence longer than two or three years. So over the years, these manufacturers, myself included and the other members of the association, have developed their own distribution networks.

History has told us in the past that distribution is a very important element of the growth of any industry. Speed to market, and allowing for innovation, and a clear path to accessing your customer in forming those relationships really helps manufacturers sell their products.

We were having a really hard time understanding why we should not be allowed to continue to run and grow the businesses that we established and that have really been able to see the cannabis industry in California grow to the level that it is today.

TG Branfalt: What’s your response to the claims by members of law enforcement that allowing companies to distribute their own products opens the door to “criminal elements”?

Kristi Knoblich Palmer: You know, I try not get personally offended when I hear that.

Right? Set the emotions aside. I just think that there’s been little bit of fear-mongering going around at the capital. Special interest groups want to reach in and carve out a piece of the pie for themselves and protect a segment of the industry so that they can jump right in and preserve their margins for their other businesses.

Our reaction to that has been, “You know, if you have a great distribution company and you offer a really great service then people will want to hire you to do distribution.” I guess what we wanted to see was a level playing field.

We weren’t asking to keep those people out. We believe in healthy competition and if the other distribution company is better than mine then so be it. Dispensaries should be allowed to shop at those distributors as well.

We just feel that, as manufacturers, we also just deserve the right to do our own distribution and offer a competitive service to the dispensary customers.

TG Branfalt: I want to talk to you a bit more about what to expect as California migrates into a recreational system but before we do that we’ve got to take our last break. This is Ganjapreneur.com podcast. I’m TG Branfalt.

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TG Branfalt: Welcome back to Ganjapreneur.com podcast. I’m your host TG Branfalt here with Kristi Knoblich Palmer, Chief Operating Officer of Kiva Confections, Founder of California Cannabis Manufacturers Association.

Before the break we were talking a bit about vertical integration, which is just one of the things that is going to be determined in the coming months as California gears up for the rollout of the adult use regime. What are the CCMA members expecting as California legalizes, as far as regulations goes, staffing issues, expansion, and real estate?

These are all things that are obviously going to be impacted so what are you guys kind of expecting and preparing for as that happens?

Kristi Knoblich Palmer: I think right now our minds are on the testing labs. I think right now in California, since we’re still unregulated, we don’t have laws implemented just yet, there’s probably, a shot in the dark would be 25 percent of the testing that will need to be happening when we have our new laws is happening now.

On the day that we’re supposed to be mandating testing what happens to the volume at the labs when their volumes go up times-four? Having those strict testing regulations, we’re excited about.

We want to see pesticide-free cannabis. We want to see clean edibles on the shelves. That’s really, having trustworthy and reliable products on the shelves, is really what’s going to allow the industry in California to flourish.

In order to get our clean products to the shelves we need comprehensive testing labs. We need the ability, they need the ability to scale. So we either need more labs, we need maybe more equipment, whatever the labs need, whatever resources they need and expertise that they need to bring on to see and serve the demand that they’re about to encounter in 2018. That’s our next focus: how can we get the labs ready for 2018?

TG Branfalt: That seems to be an issue that’s coming up in Massachusetts, Maine, is that there’s this lack of testing facilities. Is there any way to bridge this gap or is it, I mean, is there any light at the end of the tunnel for manufacturers and producers in this regard?

Kristi Knoblich Palmer: Sure. I think sun’s setting in the new regulations, phasing in, in some fashion, testing regulations. We really can’t go from 0 to 60 overnight without encountering some serious choke points. It just could, it really could destroy and stifle the industry.

I think a phase-in of testing regulations would really help. Maybe incentivizing companies to test at the level that we really, at the goal basically. So some types of incentives that would help to do that or allowing, encouraging companies to bring testing onsite as well.

There are some, I think, techniques and things that can be done to try and tackle that. Maybe it’s even incentivizing labs, as well, to open up their services and begin to expand and bring on more people.

TG Branfalt: That’s another issue is staffing issues. Are you guys, are California manufacturers concerned that they’re not going to be able to find staffing and not be able to meet demand? Because demand’s definitely going to go up, you know, when this rolls out.

Is staffing a concern right now or … ?

Kristi Knoblich Palmer: I would say everything’s a concern right now.

Staffing is one of many but certainly, yes. When you start thinking, when you’ve heard from the guys in Colorado, businesses there talking about when they made their flip from medical to recreational that they had to be, they should have been prepared for five to seven times growth.

That’s what I’ve heard from other manufacturers there and some are only ready for double or triple. When you think about how do you scale your current operation to, say, times-four, that becomes a really difficult problem to try to wrap your mind around, right?

To try to scale to times-four when you don’t have volume already coming in the door times-four, means okay, you’re going to have to buy some stuff. You’re going to have to invest in some people and buy some equipment and increase the size of your facility.

How do you do that is with money. How do you get money is with a loan or taking on some investments. And you know, then we have our banking issues. So how are you going to get four-times the pay checks written, or pay checks involves the word “check.” How are you going to make payroll when everything is in cash? And you’re going to have four times the amount of volume in cash.

So there’s waterfall of issues coming down the line for us. I think ways that we can mitigate that, again, is phase-in of the regulations because what we know for sure is we have no idea what’s coming at us.

I think it’s going to take a lot of patience from everybody: from the operators, and from regulators and lawmakers alike.

TG Branfalt: Finally, I want to ask you, you’ve been so successful thus far and you’re very forward-thinking, and it’s very rare that you hear any business person say, “We want regulations.” That’s almost crazy, right?

Kristi Knoblich Palmer: Mm-hmm (affirmative).

TG Branfalt: So what advice do you have for entrepreneurs looking to get into the space? And what advice would you have them especially, if they were decided to come into California?

Kristi Knoblich Palmer: Sure. Advice for entrepreneurs: man, I could go on for hours with advice but if I had to just pick one, I would say, “Do your best to stay focused. Practice saying ‘no’ because in this industry there is so much opportunity that you can get caught up doing everything.” Right?

You can grow your own crops. You can do your own extraction. You can do your own manufacturing, distribution. You could do everything if you want it, right?

So staying in your lane, finding an expertise, and just doing what you’re most passionate about, and what you think. Listen to your gut. Listen to your heart and do what you think is best and I think you’ll be successful.

TG Branfalt: That’s really great advice, especially “doing what you love”. The cannabis industry obviously started from compassionate people who were there to help patients.

Now that it’s migrating into this legal regime of adult use I think that it’s really important, I’m not a manufacturer myself but I think that it’s really important for operators to remember where they came from and not get blinded by the dollars that are definitely about to start flowing in.

Kristi Knoblich Palmer: Yes. Yeah, absolutely. If you’re entering the cannabis space because of the money you’re in for a rude awakening. Because I think people think of the cannabis industry, and they think that there’s plants everywhere and there’s just money falling from the sky.

But those are two very common misconceptions and couldn’t be further from the truth because there’s a lot of experimentation and there’s no one telling you what to do. There’s a lot trial and error, and a lot of problem solving and Googling.

That couldn’t be further from the truth, at least in my experience but maybe we’re doing something wrong. I don’t know.

TG Branfalt: Finally, can you tell the listeners where they can find out more about the confections and more about the CCMA?

Kristi Knoblich Palmer: Absolutely. The CCMA has a website, the California Cannabis Manufacturers Association. Kiva Confections has a website as well where you can learn about the Kiva products.

The industry is growing so we always encourage people to participate and get to know each other, network, join the trade organizations. Tell people your perspective. Give your feedback because as the industry grows if you don’t speak up and stand up, and tell people how new regulations are going to affect you and your livelihood, and your business, they just won’t know.

Trade organizations are a really, really great way to do that and to meet other people in the industry and network. Highly encourage everybody to get involved in any capacity.

TG Branfalt: Well, I want to thank you very much, Kristi, for taking the opportunity to spend some time with us. I’m really happy that I got to speak to somebody who’s right on the cusp of this and working with micro-dosing and edibles, and also working in a trade organization.

This has been really a eye-opening sort of interview for me.

Kristi Knoblich Palmer: Great. Well, I’m so happy to be here. And like I said, really exciting time for the cannabis industry. We haven’t even hit the starting line here, in California. That’s the part that is just really exciting and thrilling.

I’m very happy to be here. Thank you for the opportunity.

TG Branfalt: You’re absolutely welcome.

You can find more episodes of the Ganjapreneur.com podcast in the podcast section at Ganjapreneur.com and in the Apple iTunes Store. On the Ganjapreneur.com website you will find the latest cannabis news and cannabis jobs updated daily along with transcripts of this podcast.

You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Jeremy Sebastiano. I’ve been your host, TG Branfalt.

End

A lone potted cannabis clone sits on the floor with a long shadow extended behind it.

Minnesota Company Launches Campaign to Remove MMJ Stigma

6/09/2017

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A Minnesota company has launched a statewide campaign aimed at normalizing and removing the stigma surrounding medical cannabis. The “More Firsts” campaign by LeafLine Labs, a licensed medical cannabis business, is meant to humanize patient stories and represent “firsts” for the company’s patients after starting medical cannabis treatment.

Dr. Andrew Bachman, co-founder and CEO of LeafLine, said he hopes the campaign helps others “realize the documented success and safety” of medical cannabis treatments.

“We are humbled every day by the patient triumphs in which we are privileged to share – compelling stories involving chronic pain, opiate dependence, intractable seizures, terminal cancer and more,” Bachman said in a statement. “Through innovative formulation, consistent medication and compassionate care delivery, we are dedicated to promoting health, alleviating suffering and restoring quality in the lives of our patients.”

The campaign includes advertising in Minneapolis and Saint Paul light rail and bus stations and videos featuring actual LeafLine patients.

“It’s increasingly important that we educate, advocate, and communicate with scientific data and documented patient results to demonstrate that cannabis is medicine,” Bachman said. “Our hope is that these stories will remove stigma, replace doubt, provide hope, and encourage anyone suffering from an approved condition to consider our safe and effective medicine and care as a therapeutic option.”

Minnesota’s medical cannabis program was launched two years ago but so far just 6,000 patients are registered. The company estimates that there are more than 15,000 Minnesotans eligible under the state’s qualifying conditions list to participate in the program.

End

The state flag of Colorado flying in the wind.

Colorado Gov. Signs Plant Cap, Illegal Grow Enforcement Funding Bills

6/09/2017

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Colorado Gov. John Hickenlooper has signed a bill allowing $6 million a year from the state’s cannabis tax revenues to be used to crackdown on the state’s illicit market, the Associated Press reports.

“We don’t want people to say they’re trying to grow for medical purposes, or licensed recreational uses, and instead they’re shipping it out of state,” Hickenlooper, a Democrat, said in the report.

The bill was supported by both law enforcement and cannabis industry groups. The state gave law enforcement about $1.7 million last year to combat illegal grows and to train officers to recognize individuals driving under the influence of cannabis. The recent funding will give police more resources to crack down on illegal cultivation sites in rural areas, where there are often no legal dispensaries and no local tax benefits derived from legalization.

Kevin Gallagher, head of the Cannabis Business Alliance, indicated that illegal grows undercut prices of legally grown cannabis and casts legalization in a negative light.

“The black market certainly hurts the regulated industry,” he said.

Last year, more than a dozen raids in southeast Colorado netted 22,000 pounds of illegal cannabis authorities say was intended for out-of-state sales.

Michael Phibbs, head of the Colorado Association Chiefs of Police, said that investigations in rural communities “can be very time-consuming and expensive.”

The bill sponsor, Sen. Irene Aguilar, said the funding is not intended to jail more people but to help those rural areas, which might be short-funded and short-handed, deal with illegal grows. She said that there “is no evidence” that illegal grows “disproportionately affects minority communities,” although there has been some debate over racial disparities in cannabis arrests after legalization.

The governor also signed a bill that caps home-grow limits to 12 plants, from 99. Hickenlooper said the 12-plant limit helps protect “neighborhoods from violence often associated with illegal drug trafficking.” Some primary caregivers will be able to cultivate up to 24 plants if they register with the state, according to a Cannabist report.

Rob Correy, a Denver-based attorney, said that he will file a lawsuit against the plant cap in a matter of days.

“We’ve got bills here that are in direct conflict with the voters’ will in enacting Amendment 64 as well as the voters’ will in enacting (medical marijuana) Amendment 20,” Correy explained to the Cannabist.

The new grow rules are set to take effect Jan. 1, 2018.

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A row of back-lit palm trees pictured during the golden hours of sunset.

Florida Lawmakers Convene Special Session to Take on MMJ Bills

6/08/2017

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After Florida lawmakers failed to pass a voter-mandated medical cannabis expansion bill during the regular session, the responsibility was moved to the Health Department; however, the legislature has called a special session and reached an agreement on the law with plans to vote on the measure by the end of the week, the Miami Herald reports.

The deal, though, has drawn the ire of activists because it doesn’t allow smoking – providing instead for vaping, edibles, and oils.

John Morgan, the Orlando lawyer who bankrolled the Amendment 2 campaign, said if the bill is enacted as is, he will sue the state.

“Done is better than perfect and this is far from perfect,” he wrote in a blog post on Medium. “I will be suing the state to allow smoke. It was part of my amendment.”

If approved as is, 10 new medical cannabis cultivation licenses would be granted in the state. Those licenses would be available only to companies that were previously denied operation access in the state. Currently, there are just seven licensed operators in Florida. Each grower would be allowed to open up to 25 dispensaries.

Ben Pollara, executive director for Florida for Care, an advocacy group that worked on the Amendment 2 campaign, said the “bill is not perfect” but was hopeful that the flaws could be addressed in a future session.

“The critical need is for the House and Senate to send a bill to the governor so that patient access can expand in Florida,” he said in the report.

The amendment will expand the qualifying condition list to include HIV, AIDS, post-traumatic stress disorder, ALS, Crohn’s disease, Parkinson’s disease, multiple sclerosis or other, similar conditions, and lawmakers included terminally ill patients, regardless of condition, as well as chronic pain caused by one of the conditions included in the amendment. Chronic pain on its own is not included in the legislative deal.

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A slice of pizza with a large, indoor cannabis cola.

Massachusetts Dispensary Offering Cannabis-Infused Pizza

6/08/2017

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A medical cannabis dispensary in Quincy, Massachusetts is now offering a cannabis-infused frozen pizza to their patients, using flavorless liquid cannabinoids in the sauce and ingredients, FOX6NOW reports.

Seth Yaffe, director of operations for Ermont who previously spent 20 years in restaurant management, said the “bar pie” makes medicating “less scary” for some patients “and less a reminder of what they’re psychologically trying to distance themselves from.”

“A lot of our top sellers right now are olive oil, honey, peanut butter — things our patients can use to do their own cooking at home,” Yaffe said in the report. “We’re working on a vegan mayonnaise right now that patients will be able to put on a sandwich.”

Like other medical cannabis products, the pizza is clearly labeled with dosages and packaged in a ways that’s tamper-proof and child-safe. The label indicates the pizza contains 128.98 milligrams THC, 12.75 milligrams CBD, and 3.14 milligrams CBC. According to an Associated Press report, Ermont charges $38 for the 6-inch pies. Yaffe said the dispensary has sold about 200 in three weeks.

The pizza is currently only available in cheese but patients can choose to add their own toppings before tossing it in the oven.

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First City in Calhoun County, Michigan Approves Some MMJ Business Operations

6/08/2017

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The city of Marshall is the first in Calhoun County, Michigan to allow medical cannabis businesses to operate after the City Council voted to allow cultivation, transport, processing, and testing businesses – but not dispensaries – to operate within the city limits, the Battle Creek Enquirer reports. The move comes after lawmakers changed the state’s laws to reign in Michigan’s so-called “gray market,” implementing a more centralized regime, in September.

Councilmember Brent Williams said during the vote that it didn’t matter what his “personal opinion is” about the cannabis industry because, “if all the trending is accurate, recreational use of marijuana will be approved by the voters in the state.”

“What matters is how do we as local government accommodate … the wishes of the people in our state?” he said in the report.

Marshall City Attorney Jim Dyer had encouraged the City Council to act, one way or another, because doing nothing would likely lead to lawsuits, ultimately putting the fate of the city’s cannabis industry in the hands of the courts.

“You can take no action, and by doing so, you’re effectively prohibiting every use under the statute,” Dyer warned councilmembers. “We think that’s not very good. From the aspect of proactively avoiding litigation regarding this, it’s not good, and it’s also not good from an economic development perspective.”

The city rules require that all businesses have a security plan approved by the city manager and prohibit cannabis businesses from being within 6,000 feet of one another.

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Court of Appeals Revives ‘Horse Rancher Lawsuit’ Against Cannabis Cultivator

6/08/2017

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The 10th U.S. Circuit Court of Appeals has revived a lawsuit by a Colorado horse farm which claims that a cannabis cultivation site near their farm diminishes their property values, the Associated Press reports. The case was first filed in 2015, but was dismissed by a federal district court, and the grow, operated by Rocky Mountain Organics, opened in 2016.

The horse farm owners, the Reillys, are trying to use federal racketeering laws to shut down the cultivation business, alleging that those laws entitle them to collect damages from the cannabis farm owners, despite cannabis’ legal standing under state law. The judge in the lower court had ruled that the Reillys could name neither Gov. John Hickenlooper nor Pueblo County officials in the suit, and the 10th Circuit Court judges upheld that ruling, but added that “the landowners have plausibly alleged at least one (racketeering) claim.”

Brian Barnes, a Washington-based lawyer representing the Reillys on behalf of national anti-drug group Safe Streets Alliance, called the 10th Circuit decision “a tremendous victory for opponents of the marijuana industry.”

If the lawsuit is successful, it could open the door for other opponents to use the Racketeer Influenced and Corrupt Organizations Act (RICO) against legal cannabis businesses. The case will be kicked back down to the federal district court that had originally dismissed it.

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Pharmaceuticals vs. medical cannabis: many patients argue that MMJ helps them kick addictive opiates.

Arizona Drug Rehab Offering Cannabis as Opioid-Exit Treatment

6/07/2017

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A drug rehabilitation facility in Scottsdale, Arizona is using cannabis to treat people addicted to opioid-based painkillers, ABC15 reports. Physicians at Blue Door Therapeutics are recommending cannabis pills and patches to help with nausea from opioid withdrawal and help stabilize the patient’s underlying condition.

Doctors at Blue Door, however, are not encouraging their patients to use smoking as a delivery method because it’s harder for the physicians to monitor dosage.

“They have to meet the state’s criteria for participation in the program, and that it will be used responsibly and in a way that’s not habit forming,” Dr. Ravi Chandiramani, Blue Door’s medical director, said in the report.

The idea to treat opioid addiction with cannabis came after one of the center’s founders spent time at a medical dispensary where many of her patients credited cannabis for eliminating their need for painkillers.

One of Blue Door’s patients, a 63-year-old woman unnamed in the report, said she used oxycodone for six years during a series of knee surgeries, and with the help of cannabis capsules she was able to wean off the prescription drugs in six weeks.

“Every time I tried to come down on the pain pills, I needed another surgery, so I was hooked,” she said. “Blue Door and the medical marijuana is what saved my life.”

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A cigarette butt and several unsmoked cigarettes next to an ashtray.

Tobacco Lobby Pushing for Onerous Rec. Cannabis Role in Massachusetts

6/07/2017

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Cigarette wholesalers in Massachusetts are seeking to gain a foothold in the state’s nascent recreational cannabis industry, asking state regulators to require cannabis producers to sell all their products through them, according to a Boston Globe report. The wholesale companies argue that they already have the technology and know-how to safeguard products, making diversion more difficult.

Paul Caron, director of the Northeast Association of Wholesale Distributors, a tobacco trade group, said association members are “willing to collect all the taxes on behalf of the state and stamp any marijuana product being distributed for sale.”

“Rather than reinvent the wheel, let’s use the most successful, proven encrypted tax stamp program we have: the one assigned to cigarettes,” he said in the report.

Jim Borghesani, communications director for the Yes on 4 campaign, which led efforts to legalize cannabis for adult use in the state, said the “last thing” Massachusetts needs is “another three-tiered commerce system that gouges consumers and enriches middlemen.” He pointed to cannabis-specific systems utilized in other state programs as evidence that a three-tiered system is unnecessary.

If the tobacco companies get their way, Massachusetts’ cannabis industry would look similar to the state’s alcohol industry – wherein alcohol must pass through a wholesaler before making it to bars and package stores where it’s sold.

Will Luzier, another Yes on 4 official, said if the tobacco lobby gets their way, “dispensaries would have to sell the product they grew as a cultivator to these distributors, and then buy it back from them as a retailer on the other end.”

“I don’t see any sound public policy reason why it’s important to do that, other than to benefit the tobacco industry,” he said.

Caron, a former state legislator, has made the pitch to his former colleagues and Treasurer Deborah Goldberg, who will oversee the Cannabis Control Commission. Caron has also lobbied to be appointed as one of the three members of the commission.

A state Treasury official, who was unnamed in the report, indicated regulators are skeptical of Caron’s proposal because the system that handles tobacco products, SICPA, would likely not be a great tool for cannabis products – which aren’t as uniform as packs of cigarettes and subject to daily price fluctuation.

Recreational sales are expected to begin in Massachusetts the summer of 2018.

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A collection of young medical cannabis plants under a ceiling of purple LED lights.

Colorado Gov. Signs Bill Allowing MMJ Use for PTSD

6/07/2017

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Colorado Gov. John Hickenlooper has signed a bill granting individuals with post-traumatic stress disorder access to medical cannabis under the state program, according to a report from the ABC7. Colorado is the 21st state, along with Washington, D.C. and two U.S. territories, to allow medical cannabis treatments for PTSD.

The state Board of Health had previously denied adding PTSD to the medical cannabis qualifying condition list four times. The condition is the 10th to be added to the regime.

The Colorado Department of Public Health has been researching medical cannabis treatments for PTSD; one such study by the Multidisciplinary Association for Psychedelic Studies is being funded with a $2.156 million grant from the Public Health Department. That randomized, triple-blind, placebo-controlled study involves 76 U.S. military veterans. The MAPS study has been approved by the Drug Enforcement Agency and the Food and Drug Administration. In all, the state has earmarked $3.3 million for various medical cannabis studies.

In their final protocol study, MAPS estimates that 18 percent of Operation Iraqi Freedom veterans suffer from PTSD and another 75,000 to 225,000 service members will return from duty with symptoms.

In September, the American Legion’s Committee on Veterans Affairs & Rehabilitation called on the DEA to “license privately-funded medical marijuana operations” and reschedule the drug in order to increase access for veterans who are denied medical cannabis program access by federal Veterans Administration hospitals. In the resolution, the committee indicated they believe that medical cannabis is a viable therapy for treating PTSD and traumatic brain injury.

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Hawaii MMJ Operators Waiting for Regulators to Certify Testing Labs

6/07/2017

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Medical cannabis business owners in Hawaii are still waiting for regulators to certify laboratories to test their products, as the program infrastructure is in place but after more than a year sales have yet to occur, the Associated Press reports.

Helen Cho, director of integrated strategy for Aloha Green Holdings, said her dispensary in Oahu has cannabis stored and ready for sale. Maui Grown Therapies and Pono Life Sciences Maui LLC also have product ready for sale. Manoa Botanicals, another Oahu dispensary, indicated they are still cultivating plants which aren’t quite ready for harvest.

Cho said that Hawaii’s cannabis industry operators are becoming frustrated with regulators as companies are “continuing to spend money, but there’s no cash flow.”

“Every day we’re still operating a business, and on top of the overhead, cost of salaries, rent and utilities, every licensee is under some sort of construction,” she said in the report, adding that she is paying 30 employees. “We’re ready to go.”

Health Department officials are still expecting the state’s first dispensaries to be open sometime this summer but they want to be sure the cannabis supplied to patients is safe before they give a green light to the industry.

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Medical cannabis plants inside of a California home grow operation.

New Hampshire Gov. Likely to Sign Cannabis Decriminalization Bill

6/06/2017

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Cannabis decriminalization is headed to New Hampshire as a bill to do just that has passed the Assembly and is moving to the desk of Gov. Chris Sununu, who has publicly supported the plan and will likely sign the reform bill, the Concord Monitor reports.

The measure will spell the end of criminal possession charges for adults caught possessing up to three-quarters of an ounce, making it a violation carrying a $100 fine for the first three offenses. Additional offenses within a three-year period will be subject to misdemeanors and higher fines.

Democratic Rep. Renny Cushing, a long-time proponent of cannabis reforms in the state, said it “makes no sense” for New Hampshire to be jailing people for cannabis possession while other New England states, namely Maine and Massachusetts, are rolling out adult-use programs.

According to a report by the American Civil Liberties Union of New Hampshire, the state spent more than $6.5 million enforcing cannabis possession laws in 2010 and black people were 2.6 times more likely to get arrested for possession than whites.

Another bill adding chronic pain and post-traumatic stress disorder to the state’s medical cannabis qualifying conditions list is also in the hand of the Democratic governor but he has not indicated whether he would sign the legislation.

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Ezra Soiferman: The World’s First Cannabis Artist-in-Residence

6/06/2017

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Ezra Soiferman is a Montreal-based professional photographer, documentary filmmaker, and has been the official artist-in-residence for Tweed — one of the largest cannabis brands on the planet — for almost one year. Ganjapreneur has also just learned that Ezra and Tweed are now talking about extending the residency past its originally planned early-July end date and discussing other projects for him within the company.

In the following interview, Ezra shares stories from his nearly completed first year of residency with Tweed. Whether wandering through the cannabis canopy in the former Hershey’s factory that Tweed purchased last year in Smiths Falls, Ontario, taking backstage photos at world-class concert events, or just hitting the street at sunrise to see what magical moments he might find that day — Ezra unveils some of these experiences below.

He has also included some photos from his residency for our perusal, which we hope you enjoy!

Ganjapreneur: Could you tell us the story of how you came to be the world’s first cannabis artist-in-residence?

Ezra Soiferman: Happy to! But first, a thank you for being interested in all this. It’s been such an adventure since the residency kicked off last July and each time I’m asked about it I pinch myself to make sure it’s really happening.

The very short answer to your question is that basically I just dreamed up the idea of a cannabis artist-in-residence, pitched it to Tweed, and they loved it and we kicked it into gear.

But there’s a whole backstory with me being both an artist – specifically a documentary filmmaker and street photographer – and at the same time a guy who’s been fascinated by all things cannabis for quite a while, and I guess it just made sense to Tweed to have someone like me around doing cool stuff.

My passion for cannabis began in 1993 when I co-directed Pressure Drop with Marc Ostrick as our NYU thesis film. That 18-minute short, about an elderly grandfather who tries cannabis for his glaucoma, opened my eyes to medical cannabis and set in motion a near 25-year fascination with the sheer versatility and seemingly infinite benefits of marijuana and hemp. The film played at over 20 film festivals and to our knowledge was one of the very first (if not the first) film about marijuana as medicine.

Over the years, I created or was involved with a whole bunch of cannabis-related film, photo, product or community projects. Also, on a daily basis I eat hemp, wear hemp, share hemp, and use it in some functional form or another. It never gets old, I’m always learning something new about it. People I meet are generally pretty interested in learning more and I’m always happy to talk further about it if they inquire.  

One night in late 2015, a few nights before the release of my CBC Documentary Channel edibles film Grass Fed (which can now be seen on iTunes), I had an epiphany that a cannabis company needed to take on an artist-in-residence. It just popped into my head that this would be a novel thing for a company to try and that it would yield colourful and unexpected results.

The very first company I thought of was Tweed, Canada’s largest – and I think coolest – licensed producer. They have a fun, trendsetting and down-to-earth image and I’d followed their development from way back in 2013 when they were one of the first legal Canadian medical cannabis producers. I’d also had some exposure to the company when I filmed a pivotal scene from Grass Fed there with comedian and sciatica patient Mike Paterson, who visited Tweed to learn how his medicine was grown.

It was kind of a, “Well, someone’s going to get the honour of being first at something as wild as this and it might as well be me and the company in the cannabis space I dig the most” moment when I conjured up the residency. But I slept on the idea and the next day ran it by a trusted old friend who is almost never wrong in his predictions (aside from whether Trump would be elected) and he thought the idea was “genius” and that I was the perfect person for a position like this. I was, of course, very flattered but not convinced Tweed would ever go for an out-of-left-field unsolicited idea like this.

I screwed up the courage and the next morning couriered my pitch and some samples of my films and photos directly to the desk of Mark Zekulin, President of Tweed. A week later, I followed up by email and he told me he totally loved the idea and was running it up the flagpole internally. From there, things clicked into place and within a few months, I was up and running as Tweed’s first Artist-in-Residence. I’m still kind of in shock, but coping pretty well with it!

What has your day-to-day looked like with Tweed?

Basically, it’s much like any day in my career: lots of developing ideas on paper, connecting with fellow artists, editing photos and writing and answering emails from my desk at home in Montreal. But where things get a little, or a lot, more exciting, is that I now have a budget for travel to get out there and explore the world with my camera. Tweed’s support for travel and equipment too has allowed me to take the time to wander far and wide, gathering the images that have defined this residency. Some of my favourites of these shots can now be seen in my new video Ez in Res’.

I also make regular trips to shoot the gorgeous plants out at Tweed’s headquarters in the sprawling old Hershey’s chocolate factory in Smiths Falls, Ontario, which is a two-and-a-half hour drive from my place in Montreal, and at the Tweed Farms greenhouses in Niagara-on-the-Lake, Ontario.

Folks often ask if I have to live in the Tweed factory as an artist-in-residence, wondering if the words ‘in-residence’ are literal. Unfortunately, I don’t get to live amongst all those plants, but I do sing to them whenever I’m out there photographing them.

And I should note that I don’t just shoot cannabis-related images for this residency. I was firm in my original pitch to Tweed that the residency would also have me continuing to shoot my usual eclectic array of subjects. So, on any given day I’m still very much out there on the streets photographing people, cars, trees, flowers, murals, fire hydrants, alpacas in alpaca hats, and whatever candid, colourful or kooky subjects I cross paths with. That’s what I do best and love to do most. Hit the pavement and explore.

Ultimately, life is my true residency and the streets are my workshop. Tweed recognized and appreciated this and gave me carte-blanche to photograph and present whatever images I want to during the residency. Sure, they seem to like my “Macrojuana” cannabis close-up series best, but they’ve been really into my other stuff too. I’m incredibly grateful for this.

What’s been your most enjoyable experience so far?

There have been so many. During the residency, I’ve had the ability to travel to places like Nashville, New York, L.A., Boston, Phoenix, Vermont and Kingston, Jamaica, amongst others. One of the most memorable experiences I had so far was getting to meet and hang out backstage with Snoop Dogg, whose Leafs by Snoop line is sold to the Canadian market by Tweed. That one particular night was a birthday party for Snoop at a club in Toronto and he was there greeting fans and Tweed patients and I had the opportunity to photograph him there as well as at a show of his at a big amphitheatre downtown. The guy is larger-than-life but incredibly down to earth. I was really happy with how those shots came out and a few can be seen in my Ez in Res’ video too.

Were you nervous at all about pushback from society and have you ever encountered the “canna-bias” that often plagues the cannabis industry?

To be honest, I was a bit nervous about how this project would be perceived, but so far there’s been next to no pushback that I’ve heard of. What I mostly keep hearing from people I tell about the residency is that I have a ‘dream job’. This is very flattering. I take it to mean they don’t just see the job inherently as being a great one, or that they themselves would love to be doing it, but that it’s also a good fit for me. Ultimately, this is a validation of my original idea for the residency and a great compliment to me and the work I’m doing throughout the residency.

One of my prime motivations for the residency was to help further normalize the conversation about cannabis. When people tell me I have a dream job (which I can’t argue with at all) it goes a long way towards showing me that there is a place for cannabis in the world and that the arts, in turn, can have a place within the cannabis industry. This ‘three-way-street’ is what it’s all about for me: bringing the arts to cannabis and cannabis to the arts in these heady days of what I like to call the “Cannabis Big Bang.” There’s so much happening now throughout the marijuana and hemp constellation and my little artsy corner of that universe is a pretty cool place to be right now. I’ll keep beaming photos back from out here for as long as my batteries last!

What was the most challenging moment of your residency so far?

When I was photographing down in Kingston, Jamaica, in January, I had the incredible good fortune to find myself at a garden party at Bob Marley’s kids’ house. (I know, right?) They were lovely people and very welcoming. It was surreal.  When the time came for the Marleys and all at the party to head over to a big outdoor Marley Brothers concert across town in Trench Town, we all hopped into cars and vans and drove – in a speeding caravan – across town. Our driver, Blaine Dowdle, was a total pro, but had trouble actually keeping up with the Marley van, which must have been powered by some type of supercharged hemp jet fuel.

Aside from an insanely windy cliff-side bus ride I took in Peru ten years ago, where I literally made peace with the fact that my life was about to end, this crosstown Kingston dash had to be the most hair-raising drive of my life. Not losing my mind or my lunch along that ride was by far the most challenging moment of my residency so far.

What’s your hope of what might come of this residency?

I really hope that my doing this sets an example for other artists to pitch themselves to other companies, cannabis-related or not, and try to entice those companies to take on artists-in-residence of their own. Tweed really understood my message that the world, now more than ever, needs more colour and that artists are the perfect vehicle to bring this about. Their support of my work and my career is incredibly heartwarming. I’m so fortunate to have their backing. I just hope there will be opportunities for other artists to be encouraged by other companies in similar ways. Corporations can sometimes feel faceless and soulless, and projects like this one, I humbly believe, can help bring a human touch to the big picture and the bottom line.  I may have been the first artist-in-residence at a cannabis company but I definitely hope I’m not the last.

Any final thoughts?

Yes… Toke it easy!

Thanks again, Ezra, for sharing your great stories and photos and for giving us a look into the life of the world’s first cannabis artist-in-residence!

To learn more about Ezra Soiferman and his work, visit www.EzraSoiferman.com. Also, for a fun and faithful representation of Ezra’s first year in residency at Tweed, check out the Ez in Res’ video on YouTube.

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A dispensary employee in Washington D.C. holds a small pile of medical-grade cannabis.

Wisconsin Veterans Group Passes MMJ Resolution

6/06/2017

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Disabled American Veterans Wisconsin passed a resolution supporting medical cannabis access for Wisconsin veterans with service-connected disabilities, according to the Cannabadger’s Gary Storck. The resolution was drafted and presented by members of Wisconsin Veterans for Compassionate Care.

Steven Acheson, one of the resolution’s authors, said the adoption was needed because “veterans are prescribed opiates at nearly twice the rate of the general population, and overdose at 50 percent higher rates,” adding that if Gov. Scott Walker is serious about curbing the state’s opiate crisis “medical marijuana needs to be part of that effort.”

“We now know in states that have medical marijuana programs, opiate abuse and overdose deaths decrease dramatically,” Acheson said in the report. “A medical marijuana program in Wisconsin will have the largest relative net positive impact on the veteran community.”

In April, Walker, a Republican, signed legislation that allows for the use of low-THC CBD oil for any medical condition so long as the patient is certified by a doctor. Bills introduced in both the House and Senate to implement a more comprehensive medical cannabis regime were referred to the respective health committees in February.

The DAV Wisconsin resolution now heads to the National DAV Convention later this year.

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A pile of pharmaceutical pills spilled onto several $20 bills.

Insys Whistleblower Instructed to Lie to Boost Opioid Prescriptions

6/06/2017

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In an interview with NBC News, a former Insys Therapeutics sales rep turned whistleblower alleges that she was instructed to get the opioid-based drug Subsys to patients who should not have had access to it.

Insys donated $500,000 to Arizonans for Responsible Drug Policy – an anti-cannabis legalization group – during last November’s General Election. Arizona’s bid to legalize cannabis for recreational use was the only statewide cannabis-related referendum defeated by voters during the election. In March, the Drug Enforcement Administration approved the company’s cannabis-based drug Syndros for Schedule II status under the Controlled Substances Act.

Subsys is an oral spray that contains fentanyl, which runs anywhere from $3,000 to $30,000 for a 30-day supply.

Patty Nixon, the former employee who was fired after she stopped showing up to work due to guilt over the lying, said her responsibilities included contacting insurance companies on behalf of doctors and patients in order to get Subsys approved and paid for by the companies.

Nixon claims that her supervisor told her ways to trick insurers into believing the approval was “medically necessary” and she would make up oncology records that didn’t exist and provide insurance companies with specific diagnosis codes, whether the patient had the condition or not.

“What I did, I was instructed to do, I was trained to do,” Nixon said in the interview. “If I didn’t do it, I was going to be in trouble.”

Insys markets the drug – which is 100 times more powerful than morphine – as a breakthrough drug for cancer pain. The Food and Drug Administration approved the drug only for cancer patients whose suffering can’t be relieved by other pharmaceutical narcotics. In the last five years, almost $1 billion worth of Subsys has been sold.

In a statement, Insys said that there were “approximately 54,000 total” prescriptions of Subsys in 2015 and 34,000 in 2016, comprising less than .04 percent of all opioids in those respective years. In 2016, the company sold $240 million worth of Subsys.

“Accordingly, Insys does not believe it (or its fentanyl product Subsys) has contributed to the national, opioid epidemic in any material way,” the statement says, adding that the company “has a comprehensive compliance program in place with protocols and monitoring” to ensure compliance with regulations.

Former Insys CEO Michael Babich was indicted by a grand jury in December for racketeering, conspiracy, and fraud. Five other former company executives have also been indicted for racketeering. All have pleaded not guilty.

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Young cannabis leaves under a grow op's LED growlights.

Nevada Lawmakers Finalize Cannabis Taxes, MMJ Reforms

6/06/2017

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Lawmakers in Nevada are finalizing the rules under which the state’s recreational cannabis market will operate, passing a 10 percent sales tax on sales, and a 15 percent tax on both medical and recreational cannabis at cultivation, the Reno Gazette-Journal reports. Legislators removed restrictions for medical cannabis applicants in the state, eliminating the requirement for background checks and cutting the medical card fee in half – from $100 to $50 – while allowing the cards to remain valid for two years instead of one.

Medical cannabis taxes will remain intact at 2 percent at production and the point of sale.

Gov. Brian Sandoval estimates that recreational cannabis taxes will bring in more than $60 million in state revenue over the next two years.

Sen. Julia Ratti sponsored the legislation to keep the medical cannabis taxes the same and reform the medical card rules. The measure also includes language to cap the licenses fees allowed to be imposed on the cannabis industry by municipalities at no more than 3 percent of the establishment’s gross revenue. Local governments statewide will also receive $5 million for their resource expenditure.

“What’s important is that you’re creating that delta between medical and recreational costs – it’s keeping the cost down for medical,” she said in the report.

However, despite the progress made on the taxation side, bills allowing public consumption, adding opioid addiction to the medical cannabis qualifying condition list, and allowing registered medical cannabis patients to buy firearms died in the legislature.

Additionally, lawmakers approved a measure allowing blood tests to determine whether drivers are under the influence of cannabis, using a 5 nanogram threshold, and labeling requirements. Recreational cannabis licensing under Early Start provisions approved by the state Tax Commission are set to begin July 1.

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A street view in New York City, looking up between skyscrapers at clear blue sky.

New York PAC Forms to Push Legalization Convention

6/06/2017

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A political action committee has been formed in New York hoping to convince voters to convene a constitutional convention, which the group calls the “only viable and reasonable alternative,” to the state legislature for legalizing adult cannabis use, according to a NY Daily News report.

Jerome Dewald, a 66-year-old venture capitalist who is leading the efforts of Restrict and Regulate in NY State 2019, said that legislation to legalize recreational cannabis use in the state has been stalled by state lawmakers for several years.

In January, the “Marihuana Regulation and Taxation Act” was introduced in both chambers of the state legislature. The Senate version was referred to the Finance Committee, while the House version was referred to the Codes Committee. Neither measure has moved out of the respective committee.

“We simply don’t believe that (legislators) will achieve any objectively reasonable result in less than five years,” Dewald said in the report, adding that the group plans on sending representatives to festivals and other events, with a more traditional ad campaign launching in the fall.

State Sen. Liz Krueger, who sponsored the legalization measure in the Senate, said she has “no idea what kind of momentum” the campaign will have.

Under New York law, the question of whether to hold a constitutional convention must be put to voters every 20 years. If approved by voters, an election would be held next year to elect delegates for a 2019 convention.

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A cannabis worker holds in their hand a thin slab of concentrate.

DEA Seeks to Have Lawsuit Against ‘Marijuana Extract’ Rule Tossed

6/05/2017

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The DEA is moving to have a lawsuit dismissed that challenges their December rule change which applies a Controlled Substances Number for “marijuana extract,” according to a report from the Cannabist. The lawsuit contends that the change moves hemp-derived products into the definition, running afoul of the 2014 federal Farm Bill.

The lawsuit was filed on behalf of the Hemp Industries Association, Centuria Natural Foods, and R.M.H. Holdings Inc., by the Hoban Law Group. Patrick Goggin, an attorney for the petitioners, contends that the rulemaking process “is at the very least troubling and additionally there were intervening factors” between the time when the rule was proposed in 2011 and when it was finalized in 2015. Goggin also objected to the DEA claim that the new code applies “only to extracts derived from a plant of the genus Cannabis.”

“It’s a simple fix: Replace genus Cannabis plants with ‘marijuana plants,’” Goggin said in the report. “If you mean what you say, say what you mean. It goes back to the question: Why are you referring to it as genus Cannabis and the [Controlled Substances Act], which defines marijuana and not the genus Cannabis?”

Following the rule change, DEA Spokesman Russ Baer said the change actually makes researching CBD – which is often derived from hemp – easier and the rule gives “priority…to those researchers who are conducting research with marijuana extracts” which the code allows the agency to “track and prioritize.”

“The code helps … distinguish scientific research between marijuana on one hand and marijuana extracts on the other,” he said, although he declined to comment on the lawsuit.

According to the report, the DEA claims the petitioners cannot challenge the rule because they didn’t participate in the rulemaking process; the rule doesn’t impose new penalties or restrict business activities; and the argument that the rule conflicts with the Farm Bill is invalid.

Goggin said the DEA brief hinges on procedural arguments and the agency has “repeatedly misarticulated the intention of Congress in enacting the Farm Bill’s industrial hemp amendment.” He said a counter-response to the DEA motion would be filed in the next few weeks.

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Washington Moving to New Seed to Sale Traceability Software

6/05/2017

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Washington state’s legal cannabis market has seen many changes since its 2014 launch — however, what has been consistent is a legal obligation for companies to track cannabis from seed to sale. Now, Washington is set to upgrade its seed to sale tracking software to a familiar name that will accommodate the state’s growing cannabis market needs.

Although the contract has not officially been awarded, the WSLCB announced on May 31 they would be awarding the bid to Franwell. Their software, Marijuana Enforcement Tracking Compliance (METRC), is also used in Colorado, Oregon, and Alaska. Franwell was one of seven vendors who submitted bids and was chosen as one of three finalists who presented day-long pitches in late May to members of the Washington State Liquor and Cannabis Board (WSLCB). Additionally, some industry leaders were consulted during the proposal development phase.

According to WSLCB spokesperson Mikhail Carpenter, the cost and duration of the contract won’t be known until the contract is executed — but the initial cost is projected to be $2.4 million, with 40% of that already in the current fiscal budget and allocated for planning and procurement. Going forward, the agency will seek to partner with licensees to fund the new system by charging a one-time fee of $480 on licenses issued between July 2017 and June 2018. Starting in July 2018, licensees will see a 30% license fee increase from $1000 to $1300 to pay for system maintenance and upgrades.

The WSLCB hopes to have METRC in place by October 31, 2017. The new system will protect medical cannabis patient information by only recording price, quantity, recognition card number, and whether the item was medical cannabis compliant — METRC will not be connected to the Marijuana Authorization Database, a state-held record of patients who are authorized to use and potentially grow cannabis for medical reasons.

“Over the last four years we have learned a lot about this industry, including aspects of the industry that were unknown when the current traceability system was implemented. The number of changes we would like to make to the existing system is beyond the scope of our existing contract,” said WSLCB Director Rick Garza. “We need a system that will grow and flex with Washington’s maturing marijuana system.”

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Wild Goose Island in Montana's Glacier National Park.

Montana Set to Collect MMJ Sales Taxes

6/05/2017

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Beginning next month, medical cannabis sales in Montana will carry a 4 percent sales tax which could force officials at the Revenue Department to make changes to their infrastructure to accept large cash payments, according to a Billings Gazette report. Due to federal drug laws, most financial institutions won’t do business with cannabis companies, forcing them to rely primarily on cash to do business.

“We may have to do some changes to our physical buildings to be able to accept cash and maybe have some cash counters and that kind of thing,” said Department of Revenue Deputy Director Gene Walborn in the report, adding that the agency needs to change their computer system to be able to accept the payments.

Businesses, too, will have to adapt to the new policy as medical cannabis sales in the state were not previously subject to sales taxes. The legislature passed the new tax in April, which is designated to state regulators for setting up a seed-to-sale tracking and lab testing system and conducting site and shop inspections – none of which was required under the state’s previous regime but lawmakers added the program safeguards after voters moved to effectively re-legalize medical cannabis use after the legislature decimated the original 2004 program.

The 4 percent tax is expected to bring in $750,000. It will drop to 2 percent on July 1, 2018.

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The New York City skyline viewed from atop a Manhattan skyscraper.

New York Economic Development Fund Invests in MMJ Research

6/05/2017

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The Buffalo Institute for Genomics and Data Analytics (BIG), a University of Buffalo program, has partnered with MMJ International Holdings to research medical cannabis as part of the state’s Buffalo Billion investment program.

The partnership will see an $800,000 investment from the state for the program, which will conduct studies on the science of medical cannabis through patient clinical research and the operation of medical cannabis healthcare businesses.

Tom Ryan, MMJ International chief operating officer, said the partnership will “create jobs, generate economic opportunity, and strengthen the region’s role as a leader in the future development of cannabis medicine.”

“MMJ International Holdings is working to attract the talent necessary for its medical cannabis research businesses to continue to bolster the economic growth in upstate and Western New York,” he said in a press release. “This partnership is a great economic stimulant for Buffalo and MMJ International Holdings. This team will place Western New York in the forefront of medical cannabis research internationally.”

Circuit Clinical, another University of Buffalo company, will assist MMJ International with bringing new patients and physicians into medical cannabis clinical trials.

“Our goal is to develop scientifically validated cannabis medicines and to facilitate their transition from the laboratory to the market at lower costs,” MMJ International Chairman Timothy Moynahan said. “While the partnership is a business enterprise there is no doubt it has altruistic dimensions; to provide safe and efficacious cannabis medicines, that alleviate pain, replace opioids, and diminish or eliminate disease.”

The partnership could lead to the creation of more than 100 jobs over the next five years.

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The Maryland Capitol Building in Annapolis, Maryland.

Maryland High Court Temporarily Halts Decision to Prevent MMJ Licensing

6/05/2017

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Maryland’s Court of Appeals has blocked a Baltimore judge from holding a hearing which could have put the entire medical cannabis industry rollout in the state on hold, the Baltimore Sun reports. The lawsuit stems from the licensing process, which minority-led medical cannabis businesses contend didn’t follow the racial diversity provisions included in the law.

Last week, Circuit Judge Barry Williams issued a temporary restraining order to prevent the Maryland Medical Cannabis Commission from issuing any more cannabis cultivation licenses. Following the decision, attorneys for 13 of the 15 companies given preliminary approval stepped in to ask the Court of Appeal to stop the hearing so they could participate in the process. So far just one final license has been issued.

“Our clients played by the rules and have spent hundreds of millions of dollars,” said Alan Rifkin, a lawyer for the companies, in the report. “They have a right to be heard.”

The ruling will allow the licensing process to continue, for now, and some of the growers anticipate they could have products ready for patients by the end of the summer.

“We’re happy that we can move forward,” Jake Van Wingerden, chairmen of the Maryland Wholesale Medical Cannabis Trade Association and president of SunMed Growers said. “The battle is not over. We won a skirmish.”

Van Wingerden estimates that the companies – the majority of which have only been granted preliminary licenses – have already spent $150 million setting up their businesses.

None of the 15 companies approved by the MMCC are minority-owned; the state law requires that the commission “actively seek to achieve racial, ethnic and geographic diversity when licensing medical cannabis growers.”

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