Senator Ron Wyden speaks at the Smithsonian Folklife Festival at Oregon State University.

Oregon Sen. Asks AG Sessions to Release DOJ Crime and Public Safety Task Force Report

8/03/2017

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Last week, advocates and cannabis industry operators were expecting an explosive report from the Department of Justice Task Force on Crime and Public Safety – but the report was never made public. Instead, Attorney General Jeff Sessions released a statement outlining the work of the task force explaining that he had been given a report, and would review the task force’s recommendations.

On Tuesday, Sen. Ron Wyden, whose home state of Oregon has legalized the use and sale of cannabis, sent a letter to Sessions pressing him to make those recommendations public.

“The American people have a right to know the basis for enforcement policy changes made by the Department of Justice,” he wrote. “… These DOJ decisions could have dramatic and wide ranging consequences for Americans’ daily lives.”

In the letter, Wyden expressed concern “about the secrecy shrouding the recommendations provided to [Sessions] by the task force’s marijuana subcommittee. He notes an April memo in which Sessions singles out cannabis policy, worrying that, combined with Sessions’ past statements on legalized cannabis, the DOJ could use the report to “justify federal actions that undermine states’ rights to set their own marijuana laws.”

“The citizens of Oregon voted to legalize medical and recreational marijuana, and it is not the role of the Attorney General to unilaterally undermine the will of Oregon voters on the basis of uncorroborated claims and furtive recommendations made by a task force shielded from public input and scrutiny,” Wyden says in the letter.

The senator concludes by asking Sessions why he has not released the recommendations. Wyden also asks Sessions to provide him with copies of the report if he does not plan on releasing it publicly.

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Plastic bags of kettle corn sit in a pile during an event at the Del Mar Fairgrounds near San Diego.

San Diego Cannabis-Themed Festival Cancelled by Fairgrounds

8/03/2017

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The Goodlife Festival, a cannabis-theme event set for late September, has been canceled by the Del Mar Fairgrounds despite the organizer saying he would rewrite the contract to hold the festival without cannabis after the District Agricultural Association board canceled the event’s contract, the San Diego Tribune reports.

Lawrence Bame, CEO of the festival, indicated he was “willing to agree to anything” but the board refused to negotiate and told him “don’t come back.”

“Nobody wants to put anything in writing, especially the board, especially for a smoking policy,” he said in the report. “I just got a phone call saying ‘You can’t go back to the board this year.’”

Tim Fennell, CEO of the fairgrounds, declined to address Bame’s allegation that Fennell refused to put anything indicating the deal was off in writing.

“Lawrence Bame is welcome to bring this issue before the board later this year,” he wrote in a statement to the Tribune. “The 22nd DAA is waiting for the Department of Food and Agriculture to provide rules and regulations in order to proceed with these type of events.”

Cannabis would not have been sold at the event, even under the stipulations of the original contract, but attendees would have been allowed to bring their own cannabis and smoke it in designated sections. Bame had lobbied for the event since 2010 and called the decision by the board “schizophrenic” because the DAA board allows other events that draw cannabis consumers – just less overtly than the Goodlife Festival.

Adult-use cannabis legalization is set to take effect in California starting January 1.

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Minnesota Judge Orders Smuggling Case Involving Ex-Vireo Employees to Continue

8/03/2017

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A Minnesota judge has denied the motion to throw out charges against two former Vireo Health officers accused of illegally transporting $500,000 in cannabis products from Minnesota to New York while trying to meet a January 2016 deadline under New York’s medical cannabis program, according to a report from the Journal News.

Dr. Laura Bultman, former chief medical officer for Vireo, and Ronald Owens, the former security officer, are accused of using the company’s armored car to transport the products – in violation of federal and state laws.

Judge Kathleen Mottl ruled that the alleged smuggling scheme is not protected under Minnesota state law or federal corporate laws. Mottl concluded that the duo acted alone and that no current Vireo Health officials are implicated in the case. Health officials in New York are conducting an independent investigation.

Andrew Mangini, a spokesman for Vireo Health, said Mottl’s decision was “a reminder that neither Vireo Health nor any of its affiliates are a party” to the actions of the accused former employees.

“This ruling follows closely on the recent news that the licenses for both Vireo Health of New York and Minnesota Medical Solutions were renewed by state regulators,” he said in the report. “As always, we will continue to remain laser-focused on serving patients suffering from serious conditions like chronic pain, cancer, ALS and HIV/AIDS.”

Both Bultman and Owens have pleaded not guilty.

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An indoor cannabis crop in a licensed cannabis cultivation site in Washington state.

Alaska Cannabis Tax Revenues Reach New High

8/02/2017

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Tax revenues derived from Alaska’s legal cannabis industry nearly doubled from May to June, from $272,100 to $512,200 – the most in a single month since sales began in late October, Alaska Dispatch News reports. Officials from the state Department of Revenue are anticipating the trend will continue for July.

“This is really incredible,” Kelly Mazzei, excise tax supervisor for the tax division, told ADN reporter Laurel Andrews. “We knew it would happen; we just didn’t know when.”

In addition to the sales taxes, 40 growers and 15 cultivators paid the state in June and Alaska netted $1,748,500 from legal cannabis sales during the fiscal year, which ended on June 30. The state had projected $2 million after downgrading their projections twice following slower-than-expected sales in January and February.

In June, 547 pounds of flower and 313 pounds of trim were sold by cultivators in the state. Flower is taxed $50-per-ounce and trim is taxed $15-per-ounce.

“We also anticipate much larger quantities being sold or transferred [in July] by outdoor cultivators as those crops are harvested,” Mazzei said in the report.

Under state law, half of the tax revenues are earmarked for the state’s general fund, while the remaining is used for programs to reduce repeat criminal offenders.

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A NFL quarterback looks down field to make a pass.

NFL Offers Partnership with Union on MMJ

8/02/2017

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NFL officials have offered to work with the NFL Players Association on the potential of cannabis as a pain management tool for players, according to a Washington Post report. In a letter, league officials outlined areas for potential research including pain management for acute and chronic conditions.

The letter comes one week after a study was published in the medical journal JAMA which found Chronic Traumatic Encephalopathy, a neurodegenerative brain disease, in the brains of 110 of 111 deceased former players. Several studies have purported that cannabis has neuroprotective qualities; the most recent was conducted by researchers at Israel’s Tel Aviv University’s Adelson Center for the Biology of Addictive Diseases as the Sackler Faculty of Medicine published in 2013.

“We look forward to working with the Players Association on all issues involving the health and safety of our players,” said Joe Lockhart, the NFL’s executive vice president of communications, in the report.

The union has been independently investigating alternative pain management treatments, convening a pain management committee last year. Additionally, NFLPA Executive Director DeMaurice Smith has called on the league to relax its cannabis policies, urging league officials “to not simply assume recreation is the reason [cannabis] is being used” by players. In May, Smith said in an interview with ESPN Outside the Lines that the union intends to present a proposal to the league “that has probably a more therapeutic approach” to players who test positive for cannabis.

The NFLPA has not publicly responded to the league request to collaborate on the potential of medical cannabis use in the league.

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New York Adds Five Companies to MMJ Roster

8/02/2017

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New York has doubled the number of available medical cannabis licenses from five to 10, despite objections from current operators claiming that the demand doesn’t call for an expansion. However, according to a New York Post report, the number of registered patients has increased 70 percent since March – from 10,744 to 25,736 – following the addition of chronic pain to the qualifying condition list in December. Patients with the condition were allowed to access the program on March 21.

State Health Commissioner Dr. Howard Zucker said adding the additional licenses “will make it easier for patients across the state to obtain medical marijuana.”

“The New York State Department of Health is committed to growing the state’s Medical Marijuana Program responsibly,” he said in the report, adding that the increased competition will reduce the cost of medical cannabis products in the state and increase variety of available products.

The new producers include Fiorello Pharmaceuticals, Citiva, Terradiol, PalliaTech NY, and Valley Agriceuticals.

Fiorello plans to dispense in Midtown Manhattan, Long Island, and upstate New York; Citiva is eyeing locations in Brooklyn, Staten Island, and upstate New York; Terradiol and PalliaTech plan to dispense in Queens; and Valley Agriceuticals is planning on setting up shop in Brooklyn.

If all 10 licensed operators in the state open their four allowed dispensaries, there would be 40 retail locations total statewide.

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A long, dusty road in sunny South Dakota.

Typo Could Derail Legalization Effort in South Dakota

8/02/2017

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One sentence in the 11-page ballot initiative to legalize cannabis for adult use in South Dakota could doom the entire proposal, according to a CBS News report. The section legalizing paraphernalia addresses the laws of “the state or subdivision” (cities or counties); however, the section legalizing cannabis use doesn’t include “the state or,” just the laws of the subdivision.

The conclusion – that the measure would legalize paraphernalia state-wide but not adult cannabis use – was interpreted by the nonpartisan Legislative Research Council.

Melissa Mentele, director for advocacy group New Approach South Dakota, who are circulating the petitions, indicated the error could be fixed by the Legislature or the courts and she is “not concerned about it at all.”

“It’s just a typo,” she said in the report. “It’s one person’s perception of grammar versus another’s.”

Jason Hancock, Legislative Research Council director, disagrees. He said that the supporters could submit an amended proposal but that would void all existing signatures collected to put the issue to voters in 2018. Advocates must collect 14,000 signatures by November in order to be successful. If they have to submit a new proposal, it could take up to 90 days for the attorney general’s office to publish an explanation, which would make gathering the signatures impossible.

Jesse Kelley, a Marijuana Policy Project attorney who worked on the proposal, indicated that this is “not a new issue” for cannabis ballot measures, noting that in other states advocates have emerged from court victorious.

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New Jersey Sen. Cory Booker Introduces Federal Cannabis Legalization Proposal

8/01/2017

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Sen. Cory Booker, a New Jersey Democrat and former mayor of Newark, introduced a proposal today that would legalize cannabis at the federal level and penalize states whose marijuana laws disproportionately target low-income and minority communities, according to a Politico report.

The Marijuana Justice Act, similar to other legalization bills that have been introduced at the federal level, would remove cannabis from the Controlled Substances Act.

The bill, however, goes much further than that. If passed, the proposal would take a number of steps towards righting the wrong of cannabis prohibition: states who choose to maintain the status quo would see some federal funds withheld, the proposal would expunge all federal cannabis arrests and grant prisoners currently imprisoned for a cannabis-related offense the right to a sentencing hearing, and would also establish a new Community Reinvestment Fund that would seek to help communities who have been disproportionately harmed by the enforcement of federal cannabis laws.

“You see these marijuana arrests happening so much in our country, targeting certain communities — poor communities, minority communities — targeting people with an illness,” Booker said during a Facebook Live announcement of his legislation.

https://www.facebook.com/corybooker/videos/10157111094132228/?hc_ref=ARRZw2ydVDlHqKr3P3O06zPsBZWa8lKXZuIWVMS0-BCzV2_0LS_9ITJartmub6QZkQM

 

The chances of Booker’s bill being passed this session are slim at best: the majority of the Republican-held Congress still opposes legalization and the Trump Administration has even threatened a crackdown enforcement of federal cannabis laws on state-legal programs. Nonetheless, the Marijuana Justice Act is the most comprehensive and cannabis-friendly legalization proposal ever to be introduced by a federal lawmaker and is a sign of the recent and massive change in the federal landscape for cannabis policy.

Eight states and the District of Columbia have legalized adult-use cannabis. In his announcement, Booker said that, “They’re actually seeing positive things coming out of that experience.”

Notably, Sen. Booker’s home state of New Jersey is not among those states and he has not officially endorsed legalization in his own state — though there are lawmakers poised to propose legalization at the state level following current Gov. Chris Christie’s departure from office.

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Photo from outside the Ohio State Capitol Building in Columbus, Ohio.

Ohio Legislative Committee Passes MMJ Rules

8/01/2017

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The Ohio legislature’s Joint Committee on Agency Rule review has approved the rules for the state’s medical cannabis program one month before the statutory deadline, according to a Cleveland.com report. Under the rules, patients will have to pay a $50 registration fee annually and will be able to possess a 90-day supply, defined as up to 8 ounces of flower or products containing a comparable amount of THC.

Ohio is the first state to quantify limits this way, which equates to a patient purchasing 70 days’ worth of flower and 20 days’ worth of vape products or edibles. Patients can designate up to two caregivers to make purchases on their behalf and caregivers, who will pay a $25 fee per application, can serve up to two patients except in some situations set forth by the state Pharmacy Board such as hospice care.

The state Commerce Department will license up to 40 processors who will pay a $10,000 application fee and, if approved for a license, will pay another $90,000 and then $100,000 annually to renew. Sixty dispensaries will be approved, with applicants paying $5,000 and $70,000 bi-annually if approved.

Physicians in the state must take a two-hour continuing education course and register with the state in order to make medical cannabis recommendations to patients. They are also required to explain the benefits and risks associated with use.

Lawmakers passed the medical cannabis bill in May 2016, but it’s still expected to be more than a year before the state’s infrastructure is ready for patients.

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An official NBA Spalding basketball sitting on some grass on a sunny day.

NBA Commissioner Defends Cannabis Ban, Cites State Law Discrepancies

8/01/2017

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In an interview with the Players’ Tribune, NBA commissioner Adam Silver indicated he doesn’t “see the need for any changes” in the league’s cannabis policy “right now” because of the patchwork of cannabis laws state-to-state throughout the U.S.

“…As you know, our players are constantly traveling, and it might be a bit of a trap to say we’re going to legalize it in these states, but no, it’s illegal in other states,” Silver said in the interview. “And then players get in a position where they’re traveling with marijuana, and we’re obviously getting into trouble.”

The NBA is home to eight teams in states with legalized adult cannabis use, including the Washington Wizards from Washington, D.C.; four teams hail from California, one from Colorado, one from Massachusetts, and one from Oregon.

While the league still suspends players for cannabis use, the ban is limited to five games. Earlier this year, Steve Kerr, the coach who last season led the Golden State Warriors to a championship — their second in three years — admitted to trying medical cannabis to ease chronic back pain; however, he said “it didn’t work” for him.

Kerr added that he believes “it’s only a matter of time” before medical cannabis is an accepted therapy in all of the major sports leagues because, eventually, “the education will overwhelm the perception.”

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A security camera covered in mud and dirt, mounted on an overgrown outdoor wall.

Top Five Security & Surveillance Infractions for Cannabis Companies

8/01/2017

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Some of the most costly violations for marijuana businesses are related to inadequate security and surveillance systems in licensed marijuana operations. When violations or incidents occur with inventory, employees, or activities within the licensed premises, the first standard procedure is for regulatory authorities to review the surveillance system. Any issues related to the security and surveillance system are often found during reviews of other non-related infractions.

After more than 600 cannabis compliance inspections, here are the top infractions for security and surveillance observed via the Adherence SCORE App for cannabis compliance in 2017.

  1. The cameras do not have a clear, unobstructed view of all activity without sight blockage.
  2. All records applicable to the surveillance system are not maintained on the licensed premises.
  3. The licensee does not have a current list of authorized employees and service personnel who have access to the surveillance system.
  4. The licensee does not maintain a diagram of the surveillance camera locations, direction of coverage, and assigned camera numbers.
  5. The video surveillance system does not have an “active” notification system for interruptions and failures (cannot be email or web-based alerts)

Smart steps to ensure security compliance

All cameras in the facility should have a clear, unobstructed views of all activity. A good regulatory test for license owners or operators is to have an employee walk through the facility with an empty box. If during the walk through the employee and/or box are not visible on the surveillance system, then a violation can occur. As security and surveillance infractions are considered “public safety” issues, violations can be expensive and require administrative hearings with regulatory authorities. For owners, it’s best to avoid all types of violations and administrative actions to ensure the monetary value of the license itself is not diminished.

Another common infraction for security and surveillance is inadequate service and maintenance records maintained on-site. As the surveillance system is considered “evidentiary” in nature, all records must be maintained to ensure compliance. A surveillance log should include details on each occurrence of access to the DVR system, including maintenance and routine inspections. Surveillance systems should be contained in a securely locked room or cabinet and properly annotated on the diagrams of the licensed premises.

Often, the digital recording system of the DVR can fail without proper notice to the owner or operations manager. Cameras will appear “active” on the DVR monitoring system, but the hard drive behind the scenes may not be recording activity. Unless an alarming mechanism for these type of failures is “active,” i.e. a phone call or text message, it could be insufficient in terms of regulatory compliance. Passive alarms (email or web-based warning) are not considered compliant in most states or jurisdictions.

Keep any area where cannabis inventory may be prepped, processed, or transported under strict security surveillance. Photo Credit: Sarah Climaco

As inventory is considered ‘chain-of-custody’ in most states, a secure, fully functional security and surveillance system needs to be in place, as well as routinely reviewed and inspected. Any areas of the facility that prep, process, weigh, package, or initiate transport or receipt of product should be under video surveillance. This will ensure any and all operational issues (missing inventory, theft, workplace injury, etc.) are recorded and can be reviewed as required by authorities. Failure to properly record operational infractions can lead to additional fines, criminal or civil penalties, probation and/or license revocation.

Best practices for marijuana businesses are to ensure:

  • Your security and surveillance provider has an in-depth service level agreement (SLA).
  • The facility diagram includes a map of cameras, with camera numbers and line of sight.
  • Time and date stamps are accurate on each DVR system and all cameras are operational.
  • The DVR system is locked and secured with a detailed access and maintenance log history.
  • A list of approved stakeholders who can access the DVR system is available at the facility.

Note: This article was co-authored by Steven Owens. Steven Owens is the CEO of Adherence Compliance. He has more than 15 years of software and executive management experience working for leading technology firms such as Oracle and Alcatel Lucent.

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Cannabis News & Information

Poll: Utah Citizens Overwhelmingly Back Medical Cannabis Legalization

8/01/2017

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A supermajority of Utah citizens – 78 percent – support the medical cannabis ballot initiative being circulated by advocates in the state, according to a Dan Jones & Associates poll commissioned by the Salt Lake Tribune and the Hinckley Institute of Politics. The campaign is headed by the Utah Patients Coalition who need to collect 11,143 valid signatures by registered voters by April 15 in order to put the issue to voters in November 2018.

The poll, which surveyed 605 Utah voters, found the issue has the support of 97 percent of Democrats and 65 percent of Republicans in the state. Advocates can count Jon Huntsman Sr. among those supporters – the philanthropist and father of former Utah governor Jon Huntsman last month threw his support behind the measure.

“If medical marijuana was known by another name, it would have been utilized as a pain medication many years ago,” he told the Salt Lake Tribune. “From national research and understanding, the side effects of medical marijuana are considerably less than virtually all opioids and therefore less destructive to the body.”

The supermajority is nearly 25 percentage points higher than a January poll commissioned by Tribune-Hinckley, which found 54 percent supported medical cannabis.

Despite the public support, state Rep. Brad Daw believes that the initiative in its current form is too broad and that once voters see what’s in the initiative “they will pull back,” although he admitted that the poll results don’t surprise him because he has seen similar levels of support among his constituents, according to a Tribune report.

In Utah, patients with severe epilepsy are currently able to acquire hemp extract registration cards that allow them to import whole-plant CBD oil from states with medical cannabis programs. According to the report, from July 2014 to October 2016 just 166 such cards were issued.

This past week, the coalition held 10 public meetings on the issue as required by law to advance a ballot initiative. The measure would allow individuals suffering from cancer, multiple sclerosis, autism, chronic pain, post-traumatic stress disorder, and Alzheimer’s disease to access the program.

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A brightly colored sunset off the coast of Hawaii.

First Lab Licensed to Test Medical Cannabis in Hawaii

8/01/2017

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Hawaii’s patients are one step closer to finally gaining access to medical cannabis dispensaries more than two years after the passage of the state’s Medical Marijuana Dispensary program law as the Department of Health has licensed Steep Hill Hawaii to test medical cannabis products, Maui Now reports.

Keith Ridley, chief of the Health Department’s Office of Health Care Assurance and overseer of the medical cannabis dispensary program, called the license issuance “a major step forward” in allowing dispensaries to test their products so they can be sold to qualified patients.

“We realize that registered patients and caregivers and some of the licensed dispensaries have been waiting for a laboratory to become operational to test medical cannabis prior to consumption and sale,” he said in the report.

Steep Hill will be the first to test products, as required under the law, for cannabinoid profile, heavy metals, solvents, pesticides, moisture content, intestinal bacteria, microbial contaminants, pathogens, and dangerous molds.

Chris Whelen, head of the Department of Health’s State Laboratories Division, indicated the agency is currently working with two other independent labs to help them gain state certification to test cannabis before it heads to dispensaries for sale.

“Certification follows a rigorous scientific process that requires meticulous attention to detail and constant refining to ensure product and patient safety,” he said, noting that the interested labs “are continuing to submit or resubmit their validation studies for certification.”

Under Hawaii state law, labs are prohibited from handling cannabis products until they are certified by the state.

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Ecommerce and online shopping/delivery orders are the way of the future.

Cannabis Ecommerce Made Easy With WeedHero

8/01/2017

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With North American cannabis sales growing at an unprecedented rate — 2016 alone saw a 30 percent increase across the continent to a total of $6.7 billion in sales throughout the U.S. and Canada — medical cannabis dispensaries and adult-use retailers have seen a remarkable increase in traffic, both in person and online.

WeedHero — a family-run business based out of Portland, Oregon — is a revolutionary ecommerce system designed to smooth interactions between retailers and customers, allowing customers to browse and purchase their favorite products in the most convenient of ways.

“We believe software should not be complex. We wanted to build a product that works smarter, better and allows dispensary owners to do things their way to bring positive improvements to their sales,” said Constantine Yaremtso, co-founder of WeedHero.

WeedHero is an online ordering and delivery software suite that will turn your cannabis dispensary’s website into a powerful ecommerce shop. The full-featured marketing software is designed to enhance a dispensary’s online potentials and comes with search engine-friendly menus that can include pictures and prices of your products, the ability for customers to choose between pick-up or delivery options, automatic information gathering on clients’ orders, recording and categorizing your customers’ favorite products, options for reordering and loyalty programs, and more.

WeedHero normally provides free installation and a 15-day risk-free trial period — for Ganjapreneur readers, however, that trial offer has been extended to an entire month, so don’t wait! Visit the WeedHero website to see a demo of their services and to contact the company about getting your risk-free trial period underway.

“We enjoy fewer formalities, less bureaucracy, and more freedom,” said Iyrna Ricker, a co-founder and software engineer at WeedHero. “This means we communicate in a more direct and personal way with you; we don’t sound like a corporate drone.”

You can also meet company representatives and learn more about WeedHero’s software offerings at the upcoming IndoExpo in Portland, Oregon on August 5-6. Stop by at Booth #130 to say hello, see a demo in person, and learn how WeedHero can fit into and benefit your business model!

Alternatively, you can join co-founder Constantine Yaremtso for a 45-minute workshop, where you will learn how to adopt online ordering and delivery systems from the get-go. The webinar workshop will take place on Wednesday, August 9 at 1:00 PST — click here to register.

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Photo of a young hemp plant with a peach-colored back drop behind it.

Federal Lawmakers Introduce Measure to Treat Hemp Like Traditional Agricultural Crop

7/31/2017

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A bi-partisan bill has been introduced in Congress to exempt industrial hemp from the definition of marijuana in the Controlled Substances Act and allow the further commercialization of hemp crops. The Industrial Hemp Farming Act was introduced by Republican Congressmen from Kentucky James Comer and Thomas Massie, Virginia’s Bob Goodlatte, and Colorado Democrat Jared Polis.

“I am honored to sponsor the Industrial Hemp Farming Act because I know firsthand the economic viability of industrial hemp,” Rep. Comer, the former Kentucky Commissioner of Agriculture said in a press release. “Hemp has created new opportunities for family farmers and good paying jobs for American workers, especially in Kentucky.”

Rep. Goodlatte said that “outdated, well-intentioned” federal restrictions on hemp are responsible for the lack of commercialization and cultivation of hemp in the U.S. and removing those restrictions “will finally allow for responsible commercial production without fear of violating federal law.”

Rep. Massie said he was “optimistic” that the bill would get to the president’s desk.

“In 2014, for the first time in over half a century, hemp was grown and harvested in Kentucky under the pilot programs allowed by the Polis-Massie-Blumenauer amendment to the 2014 Farm Bill,” he said. “I look forward to working with Congressman Comer to build on that momentum to give our nation’s farmers and manufacturers more opportunities to compete and succeed in the global economy.”

Rep. Polis called hemp a “sustainable alternative to plastics and other environmentally harmful products,” noting that it “can be used in everything from construction materials to paper to lotions and even ice cream.”

“It’s past time that we eliminate absurd barriers and allow hemp farmers to get to work, create jobs, and grow this promising and historically important crop,” he said.

The measure would treat hemp like other traditional agricultural crops like corn and soybeans.

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The Massachusetts Capitol Building in Boston, Massachusetts.

Massachusetts Gov. Signs Adult Use Cannabis Compromise Bill

7/31/2017

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Massachusetts Gov. Charlie Baker on Friday signed legislation revising some aspects of the voter-approved taxed-and-regulated cannabis industry, putting the adult-use rollout on track for July 1, 2018, according to an Associated Press report.  The lawmaker-approved measure raises combined local and state taxes on products in the recreational marketplace from 12 to 20 percent. Medical cannabis sales will remain untaxed.

Additionally, the bill signed by Baker – who still opposes the law – sets strict packaging and advertising limits and provides directives for municipalities that wish to ban industry operations. Baker also indicated that he would provide additional resources to regulators if they need them. So far, Baker has included $2 million in the state budget for the five-member Cannabis Control Commission; lawmakers have approved another $300,000 to fund the program’s implementation.

Under state rules, current licensed operators will have the first crack at supplying and dispensing products under the adult use regime. Currently, there are 99 registered medical cannabis facilities and five farms. All interested individuals and businesses can begin applying in April, but current operators will be able to go through an expedited review process because they have already been vetted by the Health Department, the Boston Herald reports.

Sen. Patricia Jehlen said the expedited process will ensure “there’s going to be enough supply to serve the retail markets” as officials are hoping to avoid running low on product as was the case when Nevada began legal sales earlier this month.

The state Department of Revenue estimates legal cannabis sales could be worth $64 million in state revenues during their first year.

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The Maryland Capitol Building in Annapolis. MD.

Some Maryland MMJ Application Reviewers Had Ties to Applicants

7/31/2017

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The Maryland Medical Cannabis Commission is investigating potential conflicts of interest by those who reviewed the state’s medical cannabis applications after an investigation by the Washington Post discovered several of the “independent experts” had ties to companies whose applications they reviewed.

The applications were reviewed by Towson University’s Regional Economics Studies Institute, who oversaw 20 experts scoring the applications. However, the state Department of Legislative audits criticized the commission for using the institute because they, after an audit, concluded that the deal between the university and the MMCC circumvented “competitive procurement” standards resulting “in a lack of assurance that these services were obtained at the most advantageous cost to the State.”

According to the Post review, Julia Germaine, co-founder of Massachusetts’ Temescal Wellness, was among those reviewing applications and on an affidavit indicated she has “no known relationships” with individuals applying for a cannabis license; however it was later discovered she reviewed the application for Temescal, submitted by Ted Rebholz, a director and consultant, and her husband Nial DeMena, the co-founder of her Massachusetts company. Two heads of a Washington D.C. dispensary were also present on the panel and their business partners were among those seeking to expand into the state market – one disclosed the relationship, the other did not. Germaine claims she didn’t know her husband was a part of the Temescal application, and her husband claims he didn’t know she was an evaluator.

Daraius Irani, director of the RESI said the institute “took every step to ensure a fair process,” adding that while “it is not a conflict of interest simply to know someone professionally” working in the industry, Germaine “would have not have been an evaluator at all” if she had disclosed her husband was the general manager and she was affiliated with a potential licensee.

Patrick Jameson, the executive director of the MMCC, said the body “takes its role concerning the integrity of [the program] and fair application process very seriously and has been closely monitoring any and all situations of non-compliance to ensure the public trust.”

“The Commissioners will evaluate all available background investigation information prior to their deliberative process before issuing any licenses,” he said.

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A grey-scale image of an indoor medical cannabis plant in California.

Canopy Boulder Startup Incubator Announces Fall Class

7/31/2017

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Canopy Boulder has accepted eight startups for its Fall 2017 class, including a cloud-based quality management tool for multi-state canna-business operators, an agriculture technology hardware service, and a software platform that helps businesses manage and mine their online reviews. Each startup accepted to the program receives $30,000 in seed funding with the opportunity to earn another $50,000 later.

Patrick Rea, co-founder and managing director of Canopy, said the state’s industry has “shifted from just keeping up with demand to competing and stealing market share from one another” which has led to “increased interest in, and demand for, the cannabis technology companies that Canopy is investing in.”

“We expect this trend to continue nationwide as state markets mature,” he said in a press release.

The companies accepted to the Fall program include:

Colorado-based Virtugro, who develops automated grow-tech solutions for medium to large-scale cultivators.

My THC Guide, founded by Ebony Costain of Appamattox, Virginia, and Jameson Bennett of Louisville, Kentucky, a chatbot for the cannabis industry.

Cannabis Quality Group, developers of the cloud-based integrated quality management system.

Serene, founded by Ed Mcllory and Adam Bray of London, England, which encourages an outdoor, active lifestyle by leveraging technology.

Redfield Proctor, a “startup in stealth mode” focused on cannabis industry efficiency.

Dispenserly, which manages, monitors, and mines cannabis industry reviews to identify new opportunities and trends.

DeepGreen, which uses artificial intelligence and machine vision technology to identify plant characteristics. The company is founded by an international team hailing from Germany and France.

GreenScreens manages a network of digital flat screens in dispensaries throughout the country that rotate menu information and advertising to inform and target customers in the store.

In addition to funding, companies are able to work with experienced industry mentors and have access to Canopy partner services.

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The U.S. Capitol Building in Washington D.C.

Senate Appropriations Committee Approves Amendment Preventing MMJ Crackdown

7/28/2017

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The Senate Appropriations Committee has approved the Rohrbacher-Blumenauer amendment, which protects state-approved medical cannabis programs from federal interference, as part of the 2018 Commerce, Justice and Science appropriations bill, according to a report from the Hill. Specifically, the amendment prevents the Department of Justice from using federal funds to crack down on state-legal medical cannabis programs.

The vote rebukes a request from Attorney General Jeff Sessions, who sent a letter to members of Congress last month urging them to oppose the measure.

Aaron Smith, executive director of the National Cannabis Industry Association, said it was “great to see” the committee members approve the amendment and that “now it’s time for the House to do the same.”

“Patients deserve access to care, states deserve respect, and members of the House deserve the opportunity to vote on amendments like this that have the strong support of their constituents,” Smith said in a statement, adding that “more than 90 percent of Americans favor medical marijuana policies.”

The amendment was offered by Vermont Sen. Patrick Leahy, a Democrat, who argued the Justice Department has more important things to do “than tracking down doctors or epileptics using medical marijuana in their state.”

“The federal government can’t investigate everything and shouldn’t, and I don’t want them pursuing medical marijuana patients who are following state law,” he said in the report.

On Tuesday, House Republicans blocked budget amendments that would have allowed veterans to access state-legal medical cannabis programs and provided hemp producers access to federally-controlled water.

The House appropriations committee approved the amendment last month, and Rep. Dana Rohrabacher indicated he would offer the amendment to the House Commerce, Justice and Science Appropriations bill.

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City Hall building in Los Angeles, California.

Cannabis Business Regulations Introduced in Los Angeles

7/28/2017

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As part of their efforts to prepare for California’s legal cannabis industry, Los Angeles officials have proposed banning “volatile cannabis manufacturing” and creating a municipal bank to work with cannabis-related businesses.

Volatile cannabis manufacturing refers to using flammable gases, such as butane, in the extraction of cannabis oils to create some concentrates. The proposal drew the ire of some operators because products created using these methods make up about 60 percent of the medical cannabis market in Southern California. The state law approved by voters allows for concentrates to be manufactured using the gases, according to an LA Weekly report.  

In a policy paper on the city proposal, attorney Aaron Herzberg of CalCann Holdings said that he was “unaware of any incidents” that have occurred due to using such extraction methods at licensed facilities in other states.

Additionally, LAist reports that City Councilmember Herb Wesson has proposed a plan that would set up a municipal bank to handle cannabis-industry accounts in order to provide banking options for city operators because federal law prevents many mainstream banks from taking on cannabis clients.

“We cannot bury our heads in the sand on the issue of recreational and medical cannabis legalization, instead we must strive to reasonably regulate the emerging industry while creating opportunities for Angelenos,” Wesson said in the report.

State Treasurer and gubernatorial hopeful John Chiang has supported the creation of municipal banks to serve the industry in order to “handle the taxation of cannabis dollars and the banking of billions of dollars of transactions” expected once adults are able to legally purchase cannabis in the state.

John Bartholomew, treasurer and tax-collector for Humboldt County said that the department gets “lots of cash” that is sometimes “actually washed” because it has been “buried out in the backyard.”

Wesson is expected to introduce a formal proposal for the bank to the council’s Budget and Finance Committee. The council must also approve the ban on volatile extraction methods before it is in place.

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The Renew Sports Car, manufactured from hemp in Key West, Florida.

Hemp-Based ‘Cannabis Car’ is Carbon Neutral, Stronger than Steel

7/28/2017

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Recently, much attention has been given to the negative impact that cars have on the environment, especially their carbon footprint. Each car can represent up to 10 tons of carbon emissions.

In an effort to address these concerns, former Dell executive Bruce Dietzen has made a high-performance car using hemp materials that is both carbon neutral and can be made to run on biofuel. The car is known as the Renew.

Hemp — the cannabis cousin legally defined as containing 0.3% THC or less — is one of the most carbon-absorbing plants in the world. Each ton of hemp represents 1.63 tons of carbon absorption.

The first car made from hemp was created in 1941; it was made by Henry Ford. Incredibly, that one-of-a-kind car made from hemp fiber and other plant material was two and a half times more carbon neutral than today’s electric cars.

The Renew sports car seeks to pick up where Ford left off, but in carbon technology only. Made in Key West, Florida from roughly 100 pounds of hemp, the Renew is a true sports car that can be configured to 80 horsepower or a 525 horsepower dragster with a Flyin’ Miata drivetrain. Weighing just 2500 lbs, the turbo package gives a weight-to-horsepower ratio comparable to a Porsche 911 Cabriole.

Another advantage of a hemp body is its durability. In a recent appearance on Jay Leno’s Garage, Jay and Bruce show off the strength of the Renew body with some healthy whacks on the hood with a hammer.

Note: Photography by François Bota, courtesy of The Hemponair.

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Event attendees smoke and enjoy a concert at a High Times Cannabis Cup.

High Times Merger Sets Up NASDAQ IPO

7/28/2017

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High Times Holding Corp, the publishers of High Times magazine, has entered a definitive merger agreement with Origo Acquisition Corporation in an effort to bring the 43-year-old counterculture magazine public. The deal would see Origo acquire 100 percent of the equity of High Times in exchange for 23,474,178 newly-issued shares of Origo.

At the time of the closing current shareholders would own 83 percent of the company’s common stock and Origo would maintain a 17 percent stake. High Times management team, Oreva Capital founded by Adam Levin, would continue running the company post-merger. Oreva bought the magazine last month. The merger sets up an initial public offering to take the company public on the NASDAQ.

“We believe High Times has an important mix of qualities essential for success,” said Edward J. Fred, Origo CEO, in a press release. “High Times is a highly-recognized brand in a rapidly growing industry that has a very engaged base and increasing opportunities to leverage that following.”

Both High Times and Origo’s Boards of Directors have approved the transaction. The completion of the deal must still be approved by the shareholders of both companies.

High Times was founded in 1974 and has hosted Cannabis Cup events worldwide – the first held in 1988 in Amsterdam, The Netherlands. The first cup held on U.S. soil was 2010’s Medical Cannabis Cup in San Francisco.

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Red River from Toronto-Dominion Centre, 201 Portage Ave, Winnipeg, Manitoba, Canada

Manitoba Finance Officials Ask MMJ Producers for Cannabis Legalization Input

7/28/2017

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Finance officials in Manitoba, Canada are calling on cannabis industry operators to help develop regulations for the provincial market including “competitive pricing” and who should sell and distribute cannabis products, the CBC reports. The request comes as the nation plans to federally legalize adult cannabis sales on July 1, 2018.

“Manitoba intends to develop a local, broad-based, adaptable and ongoing framework for the implementation of legalized recreational cannabis,” Manitoba Finance officials wrote in an expression-of-interest document. “Key measures of success for the framework include restricting access to minors, competitive pricing, quality product, variety and knowledge, limits on density and locations of storefronts, accessibility for all Manitobans.”

Last week, Manitoba Premier Brian Pallister led a call to delay implementation of the Liberal proposal to avoid a “hodge-podge” of rules throughout the nation.

The move was praised by advocate Steven Stairs, who said the officials are “alluding toward the idea of having a system that’s going to make money for the province but also beneficial” for customers and retailers.

The Liquor and Gaming authority has also indicated the agency intends to survey public opinion about cannabis regulation. Manitoba Finance wants potential retailers and producers to submit their proposal to the province by Sept. 8.

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A rare thunderstorm over Harborview Medical Center in Seattle, Washington.

Cannabis Legalization Has Not Led to Violent Crime Increase in Washington State

7/27/2017

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Legalization in Washington has not led to an increase in violent crime, no matter what Attorney General Jeff Sessions would like the public to believe. As a matter of fact, FBI crime statistics show a decrease in violent crime in the state after legalization, the News Tribune reports, from 295.6 reported violent offenses per 100,000 Washington residents in 2011 – the year prior to legalization – to 284.4 such offenses per 100,000 people in 2015.

According to data from the Washington Association of Sheriffs and Police Chiefs outlined by the Tribune, there was really no statistically significant increase or decrease from 2012 to 2016 either. That data shows 3.6 violent offenses per 1,000 state residents in 2012 and 3.3 offenses per 1,000 residents in 2016.

Mitch Barker, executive director of the association, said “it would be a strain to correlate violent crime with marijuana usage.”

“I would struggle to believe that the legalization of marijuana or more legalization relates to violent crime — somebody would have to make that case to me,” he said in the report.

State Rep. David Sawyer, a Democrat who chairs the state’s House committee on cannabis policy, said while several of his colleagues were concerned about a potential increase in violence “in general, legalization takes money out of the hands of criminals.”

“As far as I’m aware there is no credible study linking violent crime and marijuana,” Sawyer said. “I think what more people are realizing is violent crime is linked to keeping marijuana illegal.”

Republican state Sen. Ann Rivers, who did not back Washington‘s legalization initiative, said the $730 million in tax revenues expected for state coffers from the industry is “not coming from people who woke up one day and said, ‘Oh, it’s legal now, I think I’ll go by some.’”

“The bulk of that is from people who were supporting El Chapo or whoever before,” she said, adding that it would be too expensive and difficult for the feds to try and crack down on the industry.

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