Entrance to the Juana Career fair, held Sunday, September 18 in Bellevue, WA.

Juana Career? Cannabis Career Fair Excites Applicants and Employers in WA

9/23/2016

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The cannabis industry came together in a unique event on Sunday at the Juana Career Fair, held at the Red Lion in Belleview, Washington. This one-of-a-kind event was hosted by Viridian Staffing, a leader in cannabis industry recruiting.  Cannabis businesses — including processors, labs, growers, consulting firms, retailers, and non-profits — all came to meet their next applicant, and the diverse group of attendees showed up dressed to impress and ready to find their dream job in North America’s fastest-growing industry.

The four-hour event started promptly at 12:00 p.m., and the exhibition hall filled up quickly with the clatter of eager conversation. The atmosphere was friendly and open.

juanacareer2

At 1:00 p.m., cannabis consultant and industry expert Shango Los conducted the first break-out session. The informative talk gave helpful tips on “harnessing your passion to find your career in the cannabis industry.” The 45-minute talk was packed with ideas about how to get your resume into the right hands, and how to hit just the right note in your cover letter.

“Each company has a visionary. Write your cover letter just for that person. Take a minute to do some research and find out what makes that person passionate about their business. Don’t be afraid to let your passion for cannabis show when you write your cover letter. Then, be persistent in getting your information in those people’s hands. Use email and mail, and finally show up and hand deliver your package,” Los advised.

The next session was a panel discussion, moderated by Los, about what cannabis employers look for when hiring new employees. Themes of professionalism, passion and persistence were echoed by the four industry leaders, with the words “dress to impress” coming up more than once.

This discussion was followed by a Cannabis Career Readiness workshop by Viridian Staffing’s chief talent officer, Kara Bradford. “I can’t tell you how many times I’ve looked at someone’s resume who listed no cannabis experience, and once they get to the interview they tell me they’ve been growing for 30 years. The industry right now is really looking for people who are experienced in cannabis, so be sure to put that, no matter how small it is, on your resume under “other skills and experience,” she counseled. The day came to a close at 4:00 p.m., but the vibe was still lively.

After the workshop, I spoke with Bradford about the event:

“We have been asked many times to put one of these on, but we wanted to wait for just the right time. Now is the time, and it was great today to see the event come together to give employers and potential hires an opportunity to connect face to face. Based on the initial feedback, I can tell it’s been a really positive experience for everyone involved.”

Several attendees said they had a great experience and felt they could take what they learned and apply it to getting a job in the cannabis industry.

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Ohio Court Amends Rules to Allow Attorneys and MMJ Companies to Work Together

9/22/2016

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Ohio’s Supreme Court has amended their rules of professional conduct giving attorneys the green light to assist medical marijuana companies, according to a Cleveland.com report.

“A lawyer may counsel or assist a client regarding conduct expressly permitted under [state medical cannabis law] authorizing the use of marijuana for medical purposes and any state statutes, rules, orders, or other provisions implementing the act,” the new rules state. “In these circumstances, the lawyer shall advise the client regarding related federal law.”

Chief Justice Maureen O’Connor said the court needed to accelerate the rule changes because attorneys “needed to know the dos and don’ts as quickly as possible.”

Last month, the court’s Board of Professional Conduct had issued a non-binding opinion that barred legal professionals from helping individuals seeking to establish legal medical marijuana businesses due to federal marijuana laws.

That opinion also barred attorneys from owning or working at a medical marijuana business and participating in the program — the rule changes do not address those two issues; however, they could be clarified in medical marijuana regulatory rules being drafted by officials.

Thomas Haren, an attorney who requested the initial advisory opinion, said he was satisfied with the court’s decision but would have liked to see more leeway in interpreting the state law.

“The only time that we may still have a gray area is on the margins where a client asks an attorney to determine whether something is permitted under the law and it’s not clear,” Haren said in the report.

Ohio’s medical marijuana law took effect on Sept. 8, but it could take as long as two years for the program to be active.      

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Illinois Judge Orders Health Department to Add Post-Op Chronic Pain to MMJ List

9/22/2016

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An Illinois judge has ordered the state Department of Public Health to add post-operative chronic pain to the list of medical marijuana qualifying conditions, NBC 5 Chicago reports. This is the second time this year that Cook County Judge Neil Cohen has ordered Director of the Department of Public Health, Dr. Nirav Shah, to add a condition to the list — in June, he ordered the Health Department to add post-traumatic stress disorder.

In order to ensure Shah complies with the order, Cohen has scheduled a hearing for Nov. 3.

Both PTSD and post-op chronic pain were recommended for program inclusion by the Medical Cannabis Advisory Board; however, the Health Department had failed to add either condition, forcing the matter to be determined in the courts.

Jeremy Unruh, general counsel for PharmaCannis, an Illinois medical marijuana company, said the decision is a “very large step in the right direction to increase the patient base.”

“I think it’s a shame that we’re having to push the governor’s office, particularly the Department of Public Health, into opening these conditions up,” Unruh said in the report. “I think it’s time that administration sort of understand that the state is supportive of a responsible, measured expansion of this program.”

Department of Public Health Spokesperson Melaney Arnold said that the department is reviewing the ruling and consulting with the Attorney General’s Office.

In addition to the two rulings by Cohen, his Cook County Court colleague, Judge Rita Novak, ordered the director to reconsider adding migraines to the list last July.      

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Test tubes being used in a lab experiment.

Australian Hospital Begins CBD Epilepsy Drug Trial for Children

9/22/2016

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The Children’s Hospital Network in Australia is conducting a clinical trial of Epidiolex, a CBD-rich, cannabis-derived drug, to determine its effectiveness for children suffering from epilepsy, according to a report by the Maitland Mercury. The trials are a part of the New South Wales Compassionate Access program, which allotted $21 million to the research of medical cannabis therapies.

The GW Pharmaceuticals-developed drug contains 98 percent CBD and other cannabinoid components which have proven to be effective epilepsy treatments. It contains no THC.

New South Wales Premier Mike Baird said that the program allows some of the state’s “most vulnerable children” to access cannabis-based medicines.

“Parents have told us they do not want to play pharmacist — they want nothing but the best for their children and we are driven by this same purpose,” he said in a press release.  

So far, 12 children from New South Wales will take part in the trials, which will be administered by John Hunter Children’s Hospital. Another trial will be performed at Sydney Children’s Hospital by Minister for Medical Research Pru Goward.

“We have embarked on an ambitious research program to explore the possible therapeutic benefits of cannabinoids for patients suffering from a range of debilitating conditions,” she said.

The program is part of the larger Medicinal Cannabis Compassionate Use Scheme, which allows adults with terminal illness in New South Wales to access medical cannabis and possess up to 15 grams of flower, 1 gram of oil, and 2 1/2 grams of resin. Cannabis, and derived products, are prescribed by doctors and dispensed by pharmacists.     

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Image of Rick Snyder, the Governor of Michigan.

Michigan Gov. Signs MMJ Reform Package

9/22/2016

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Michigan Gov. Rick Snyder has signed the medical marijuana reform package regulating the industry and legalizing edibles, according to an MLive.com report. The Republican governor says the new laws will help Michiganders “access safe products to relieve their suffering.”

“We can finally implement a solid framework that gives patients a safe source from which to purchase and utilize medical marijuana,” he said in the report.

Until now, the industry had operated as a “gray market.” Under the 2008 law passed by voters, medical cannabis was deemed legal. However, dispensaries were not explicitly permitted, which left them open to crackdowns by law enforcement.

Three bills are included in the reform package; HB4209 and HB4827 were “tie-barred” together, meaning neither could take effect unless both were enacted. HB4209 creates the Medical Marihuana Facilities Licensing Act, which establishes a licensing and regulation framework for growers, processors, secure transporters, dispensaries, and safety compliance facilities. According to the bill summary, the framework draws from elements of the regulatory structures already in place under the Michigan Liquor Control Code and the Michigan Gaming Control and Revenue Act. The measure also creates a Medical Marijuana Licensing Board and a Marihuana Advisory Panel. HB4827 establishes a “seed-to-sale” tracking system, enabling officials to oversee the cannabis processed, transferred, stored, or disposed by licensed medical marijuana operators. HB4210 allows the manufacture of cannabis-infused edibles.

“These bills are for the patients. They will help children with seizure disorders, they will help people with cancer maintain their quality of life,” Rep. Mike Callton, who sponsored HB4209 and HB4210 said in the MLive report.

The bills will take effect in 90 days.    

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Business Coalition in Maine Pushing for Tighter Cannabis Regulations

9/21/2016

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A newly-formed coalition of Maine business leaders is advocating for more stringent regulations on the state’s cannabis industry ahead of the statewide vote to legalize the drug in November, the Portland Press Herald reports. However, the group, Maine Professionals for Regulating Marijuana, has no plans on taking a stand regarding Question 1.

“Some people are for Question 1 and some people are opposed to Question 1,” Toby McGrath, spokesman for Maine Professionals for Regulating Marijuana said in the report. “But even if Question 1 doesn’t pass, this industry is here and needs to have more robust regulation and enforcement.”   

Officially, the coalition’s official platform advocates for a “quality, safe and transparent marketplace” for cannabis. Members come from a variety of business sectors, including realtors, accountants, lawyers, financial institutions, and elected officials. Pete Dufour, a Portland accountant and coalition member, said he joined the group because he has assisted businesses in navigating the regulations of the state’s medical marijuana program and hopes the organization might help connect industry operators with professionals that can steer them through the complex frameworks.

“There seems to be a big need out there for accountants and other professionals to work with these people,” Dufour said. “The laws are complex and they are in a state of flux, so they do need help navigating the process.”

Regardless of the outcome of the initiative vote, the organization is pushing for testing of THC content, pesticides and other potentially harmful substances, mandatory labeling standards, childproof packaging, and an advertising ban even if Maine remains a medical-only state.

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Nashville Decriminalizes Cannabis Possession, State Lawmaker Threatens to Revoke Funds

9/21/2016

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A Tennessee Republican State Representative is considering filing a bill next session that would halt highway funds to cities that do not enforce state marijuana laws, according to a report from the Tennessean. The move comes as Nashville became the first city in the state to decriminalize possession of small amounts of cannabis and Memphis considers its own reforms.

Rep. William Lamberth argues that having two possession laws — one local and one state — creates “two standards of justice” and the penalty is at the “whim of an officer.” Further, he argues, that it’s not decriminalization at all because they are maintaining the state statutes, and that the measures look to him “like a political stunt to curry favor with certain constituencies.”

“That’s not a bill that I would want to file, but it’s a bill that I’m certainly willing to file if Nashville and Memphis continue down this extraordinarily reckless and unjust path,” he said in the report.

Nashville’s Metro Council approved the new rules 35-3, which allows officers to hand down a $50 fine and community service if  an individual is caught with less than an ounce of cannabis. Under current law, persons could be charged with a misdemeanor and face up to one year in jail and a $2,500 fine.

In a WKRN report, Nashville Councilman Steve Glover echoed the sentiments of Lamberth — “you get pulled over by the wrong officer, you can still get handcuffed, you can still go to jail.”

Last year, Rep. Harold Love and Sen. Jeff Yarbro introduced legislation that would have decriminalized up to a half ounce of marijuana statewide, but that bill stalled in the legislature.     

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Missouri Capitol building in Jefferson City, Missouri.

Missouri MMJ Ballot Campaign Falls 23 Signatures Short

9/21/2016

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The campaign to put a medical marijuana initiative on Missouri ballots in November fell just 23 signatures short, the Riverfront Times reports. The final ruling by Cole County Circuit Court Judge Daniel Green upholds the decision by election authorities to invalidate hundreds of petition signatures that were collected on the wrong county form.

New Approach Missouri, the group behind the measure, submitted about 285,000 signatures by the May deadline, however Secretary of State Jason Kander threw out more than 10,000 of the signatures collected in the state’s 2nd Congressional District. Kander’s decision left the organization 2,242 signatures short of the 32,337 goal in the district, and sparked a lawsuit against Kander by the campaign.

In the suit, the Cole County Circuit Court ruled that 2,219 of the 2,242 signatures in question were, in fact, valid — but the campaign was still 23 votes short.

Lee Winters, the campaign’s president, says that the group has “several hundred” more signatures that show they met the threshold, but it’s unlikely they will be able to submit them into evidence because the court’s evidentiary deadline has passed. New Approach Missouri would also have to convince a judge that the state statute which invalidates signatures on the wrong county form is unconstitutional.

In addition to pushback from Kander, and Assistant District Attorney John Hirth, a group of prosecutors have also filed an affidavit to block the measure from ballots even if the advocates can overcome its current legal hurdles.

Winters, though, believes 2018 might present a better opportunity for medical marijuana in Missouri. Following the court’s decision, Winters apologized to the campaign’s supporters and thanked his team in a Facebook post.

“It is with an extremely heavy heart that I tell you all that our day in court has come and gone. Due to the judge’s ruling that signatures collected on the wrong county petition pages would not be accepted as valid we were found to be short of the minimum required number of signatures,” he wrote. “We are all still here and 2018 is right around the corner. This fight isn’t yet done, not by a long shot.”

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An empty university classroom, red desks.

Canadian University Rolls Out MMJ Class; Other Colleges Considering Offerings

9/21/2016

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Some higher education institutes in Canada are considering adding cannabis business-centric course offerings, with at least one adopting an online course, according to a report from Maclean’s.

Kwantlen Polytechnic University, in British Columbia, currently offers a 14-week, online, continuing education program taught by industry professionals. The class, Introduction to Professional Management of Medical Marijuana for Medical Purposes in Canada, has two parts. Part one is called Plant Production & Facility Management, which teaches students the biology of the plant, and the rules for operating in Canada’s industry. The second part, Marketing Sales & Drug Development, is designed to help students learn the role of health care professionals in the industry and the drug development process, in addition to marketing and branding strategies.

“It’s one thing to grow cannabis in your basement and a completely different world when you’re growing it for commercial purposes under the supervision of Health Canada,” Deepak Anand, director of the Canadian National Medical Marijuana Association, who to co-wrote the curriculum and will teach the fall sections. “Licensees were having a hard time finding people who had knowledge of the law and the regulations. They had to take in people who were completely green and spend months training them.”

According to Tegan Adams, who pitched the course to the university, “a large Ontario” college is interested in a program, but she declined to say which one. She said she has previously consulted with the University of British Columbia for a medical marijuana research program.

Universities in Ottawa, London, and Toronto, Ontario have incorporated medical marijuana into some of their pharmacy, law, and biology courses to varying degrees, and are reportedly considering expanding their course offerings, but have not yet developed any dedicated medical cannabis courses.     

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Skyline view of Portland, Oregon, with snow-capped Mt. Hood on the eastern horizon.

Majority of Oregonians Continue to Support Legal Cannabis, Poll Shows

9/20/2016

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A majority of Oregon voters believe that the legalization law approved in 2014 has so far benefited the state, according to a summary by the Oregonian‘s Noelle Crombie.

Polling data from DHM Research — an independent and non-partisan opinion research firm with a Portland-based office — suggest that 61 percent of Oregon voters believe the legalization of recreational cannabis has positively impacted the state. Only 54 percent of Oregon voters actually voted in favor of the legalization law, meaning that somewhere down the line people who were at that time either on the fence or anti-legalization have shifted their views on the matter.

“Big picture, I think Oregonians are relatively satisfied,” said John Horvick, vice president and political director for DHM Research. “I don’t think a lot of minds have changed, but the general acceptance of marijuana continues apace. There hasn’t been a backlash.”

The poll also demonstrated that the demographics of cannabis support have not changed considerrably, though the overall amount of support is still growing. Democrats and younger voters remain more likely to view cannabis favorably, while Republicans and older voters are more likely to disapprove. Likewise, urban communities expressed higher satisfaction rates than rural communities.

Pollsters also asked about voters’ dispositions toward local bans on the recreational cannabis industry and found that most voters in the state (60 percent) do not approve of such ordinances. This number also fluctuated heavily between urban and rural voters: in the Portland area, 67 percent oppose the bans; outside of Portland, only 54 percent are opposed.

Additionally, 69 percent of voters statewide support installing a local sales tax on cannabis sales. Each locality, however, will have to put that issue to voters before it can impose such a tax — more than 100 Oregon communities are already planning to do so in the coming election.

There are currently four states, plus the District of Columbia, that have legalized adult-use recreational cannabis. This November, nine states will be voting on some form of legalization: five for recreational and four for medical legalization.

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A large cannabis leaf, seen inside of an indoor commercial grow operation in Washington.

Montana Patient Says MMJ Law Violates HIPPA

9/20/2016

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A Montana medical marijuana caregiver says the state’s medical cannabis law violates federal health care privacy regulations because it forces people registered in the program to get permission from their landlord to grow cannabis if they rent their home, according to a report by the Great Falls Tribune.

Kenneth “Skip” Kildore says forcing patients and caregivers to reveal some of their medical information to a third party violates the Health Insurance Portability and Accountability act of 1996 (HIPPA) and that landlords are under no obligation to keep that information private.

“Further, because of the wildly politicized climate around this issue, a lot of people, landlords included, are strongly prejudiced against medical marijuana,” he said in the report.

State officials argue that because medical marijuana is not recognized as medicine by the federal government it does not fall under the privacy protections of HIPPA.

Kildore’s concerns come as new restrictions take hold on the state’s medical marijuana program, which has left 93 percent of the 12,730 registered patients without a provider. Under the new rules, individuals classified “with no provider” are considered their own provider, which allows them to grow their own cannabis. However, if a patient rents the home that would serve as the grow site they would need to get written permission from their landlord prior to starting any cultivation.

Kildore, who suffers from post-traumatic stress disorder, disagrees that cannabis should not be considered medicine and that patients have the right to keep their medical information private.

“Something that helps is a medicine,” he said. “It’s made a world of difference, not a perfect medicine. When I use it I cannot go out and drive. But it really has helped. I’ve become a lot mellower.”

In November, Montanans will vote on rolling back the changes to the medical marijuana program enacted by the legislature, which took effect on Aug. 31.

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Officials Send Cease-and-Desist Letters to Nine CO Cannabis Clubs

9/20/2016

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Nine cannabis clubs in Colorado Springs have received cease-and-desist letters from the City Clerk’s Office despite having no issues with neighbors or law enforcement, according to the Colorado Springs Gazette report. Many of the clubs have been in business since 2012 — after Amendment 64 passed — but were banned by the City Council in March.

Although recreational sales are banned in the city, the clubs provided products using a “reimbursement model” by which cannabis was traded for memberships or members could sign affidavits saying the club was growing the customer’s six marijuana plants allowed under the law for them. The March measure outlawed all trade and transfer of marijuana, but allowed clubs that existed before Sept. 23, 2015 eight years to phase out the businesses — provided that the owner submitted a $200 fee and consumption club application by April 29, and obtained a one-year renewable license for $90 plus registration fees.

Just five clubs applied by the deadline, but only one has been approved for the annual licensing which can be renewed for the eight-year term. Two other applications are being considered, and two more were denied. The two clubs denied applications, along with seven other clubs that did not apply to licenses, were the clubs ordered to close. On Sept. 9, El Paso County District Court granted the city a temporary restraining order against the clubs, which prompted the letters.

Jason Warf, executive director of the Southern Colorado Cannabis Council, said the clubs provide a “safe, private place” for tourists to use legal cannabis.

“This comes after years of these clubs operating without incident. While it has taken some time to get it right, we now have legislation (permitting cannabis clubs) set to be introduced at the state level in January,” Warf said in the report. “Our goal would be that the City of Colorado Springs follow this lead and enact regulations that coincide with the efforts at the state level.”

Colorado Springs Police spokesman Lt. Howard Black confirmed that the businesses have been good neighbors in the community and no violent crimes have occurred on any of the premises.

“There’s been nothing we’ve been engaged with,” he said.

Some of the clubs are scheduled to appear in court on Wednesday, where they plan on contesting the constitutionality of the ban.     

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Company Denied Maryland MMJ License Sues Commission

9/20/2016

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One of the two companies denied a medical marijuana grower license in Maryland is suing the state Medical Cannabis Commission, alleging that the body broke its own rules during the license granting process last month, the Baltimore Sun reports. Green Thumb Industries Maryland is seeking a court injunction to reverse the decision, which will likely cause further delays in the already embattled program.

The company argues that it was ranked higher by Towson University’s Regional Economic Institute, the analysts charged with assessing the applications, but that two companies ranked lower received licenses instead. Buddy Robshaw, MMCC commissioner, said the law requires geographic diversity and the body acted within the confines of the law.

In the suit, filed yesterday in Baltimore Circuit Court, the company calls the commission’s decision-making process “illogical, opaque and fatally flawed,” arguing that the contracts are worth “tens of millions of dollars” and the loss of the contract would be “devastating” to the company.

“This is a case about a state commission setting rules and then inexplicably failing to follow them,” Philip M. Andrews, who is representing GTI in the suit, said in the report.

The second company, Maryland Cultivation and Processing LLC, also ranked in the top 15 contenders for licenses but have not yet taken any action against the board. Edwin Weidenfeld, a company partner, indicated that they are considering joining GTI’s suit or filing their own.

“I want to give them a chance to clean up their own mess because I have concerns that a lawsuit will end up delaying this,” he said. “But better it be delayed than corrupted.”

Separate from the suit, the program faces another possible setback as African-American lawmakers are planning to introduce emergency legislation to address the lack of cultivation licenses awarded to minority-owned businesses, to which the commission did not issue any of the 15 available licenses.

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Irish Cannabis Medicine Research Firm Secures $550,000 in Investments

9/20/2016

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Ireland’s GreenLight Medicines, a pharmaceutical start-up seeking to develop “breakthrough medicines” using cannabis extracts, has secured more than $550,000 in funding from a consortium of private investors, according to an Irish Times report. The cash infusion follows a seed investment worth more than $110,000, and commitments of nearly $140 million in CBD hemp oil from Isodiol to assist the firm in its research. The agreement with the Swiss-American firm includes a five-year research contract which will allow GreenLight to further validate the CBD medicines developed by Isodiol in the US.   

Dr. James Linden, GreenLight’s founder and chief executive, said the company has spent the last two years developing research programs at Irish universities targeted at developing CBD therapies for a variety of illnesses; including, glaucoma, arthritis, multiple sclerosis, and cancer.

“GreenLight’s focus is on conducting research that will be the catalyst in bringing these life-changing medicines to fruition, that have the potential to help thousands of people manage their conditions,” he said in the report.

Chief Financial Officer Patrick Deasy said the investments are key to conducting “crucial” clinical trials, which cost about $7 million to $10 million per drug.

According to Deasy, GreenLight will be conducting a third call for investment funding early next year.

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Sonoma County Growers Alliance to Host 2nd Annual Cultivating Community Event on Sept. 30

9/20/2016

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Santa Rosa, CA

WHO: The Sonoma County Growers Alliance

WHAT: 2nd Annual Cultivating Community Event

The event will feature keynote speakers and panelists as we review the past 18 months that have created a regulated cannabis industry, and help prepare Sonoma County for the next 18 months of implementation.

Job Fair, local vendors, educational booths, catered organic lunch, and an outdoor 215 zone for medical patients.

Ticket sales are limited to 300 attendees. This event is appropriate for representatives across all industries including service providers, licensed contractors, manufacturers, cultivators, distributors, retailers, patients and state and local agency employees.

Confirmed keynote speakers include:

  • Fiona Ma Chairwoman, California Board of Equalization (District 2)
  • Susan Gorin, Sonoma County Board of Supervisors

Confirmed panelists include:

  • Efren Carrillo, 5th District Supervisor
  • Tony Linegar, Sonoma County Ag Commissioner
  • Gary Wysocky, Santa Rosa Councilman
  • David Guhin , Santa Rosa Director of Planning & Economic Development
  • William Gould, ALRB Director  
  • Amber Morris, California Department Food & Ag
  • Hezekiah Allen, California Growers Association
  • Jamie Kerr, Founder of 530 Edibles, Shasta Planning Commissioner
  • Melissa Sanchez, Harvest Law
  • Hank Levy, CPA, Owner of Henry Levy & Co

Tickets are $80 in advance and $100 at the door.  For more information: http://cultivatingcommunity.bpt.me

WHEN: September 30, 2016 from 10am – 6pm

WHERE: Hyatt Vineyard Creek in Santa Rosa, CA.

WHY: The Sonoma County Growers Alliance has made tremendous headway since its inception in 2015. In just one year, we have:

  • Created informative twice-monthly workshops to educate both local operators and regulators on the best management practices for the cannabis industry.
  • Produced monthly social mixers to engage local businesses and stimulate the networking within our local economy.
  • Engaged with local and state representatives to help guide and implement fair policy.
  • Created working relationships with organizations statewide to facilitate an action network.

Craft cultivators are the most vital contributors to Sonoma’s cannabis economy and deserve the creation of a fair market to ensure their successful transition into a regulated marketplace. 

Sonoma County Growers Alliance is answering this call to provide a pathway for thousands of cultivators to participate in the new regulatory framework being created by local and state government.

Contact: Alexa Barone – info@scgalliance.com

cultivatingcommunityimage

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Most Montana MMJ Patients Have No Provider

9/19/2016

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Under Montana’s newly implemented medical marijuana program, 93 percent of the 12,730 registered patients in the state are now listed as “patients with no provider,” leaving them without access to their medicine, the Montana Standard reports. The law, which took effect on Aug. 31, allows the 457 medical marijuana providers in the state to serve just three patients each.

Jon Ebelt, spokesman for the Department of Health and Human Services, said that patients classified “with no provider” are considered their own provider, which allows them to grow their own cannabis. However Chris Lindsey, senior legislative counsel for the Marijuana Policy Project, said growing cannabis “is no small step for anyone,” and it’s unrealistic for the state to think that many patients can buy growing equipment, obtain seeds, learn to grow and get permission from their landlord, if necessary, to start a home grow.

“There is a perception that growing at home is like growing house plants, but it is actually very involved, and the cost savings compared with purchasing can be offset by things like security, demanding schedule, and the possible presence of young family members,” Lindsey said in the report.

Lindsay suggests the regulations will force patients back into the informal market, or make them reliant on pharmaceuticals, at least temporarily as voters will decide on whether to roll back the changes in November.

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Cannabis Growing Container Company Execs Charged with Fraud

9/19/2016

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The Securities and Exchange Commission has filed fraud charges against individuals of Fusion Pharm, a company that makes containers for growing cannabis, over a scheme involving false financial filings and illegal stock sales, according to a press release from the oversight body.

The investigation found that CEO Scott Dittman and his brother-in-law William Sears hired Cliffe Bodden to help create fraudulent corporate documents that enabled the company to issue common stock to three other companies controlled by Sears, who sold the restricted stock into the market — hiding the companies’ link to Fusion Pharm — ultimately making $12.2 million in profit. Sears transferred some of the funds back to Fusion Pharm who falsely reported the income as revenue from PharmPod sales, and issued financial statements that mislead investors due to the fraudulent reporting.

“Sears and Dittman misled investors by recording and trumpeting revenues for purported sales of PharmPods when they were really just round-tripping money from illegal stock sales by hidden affiliates,” Julie K. Lutz, director of the SEC’s Denver Regional Office, said in the release.

The trio agreed to settle with the SEC, who will set monetary sanctions against Fusion Pharm and Sears’ three other companies. All three men are also barred from participating in any future penny stock offerings. Sears and Dittman are permanently banned from holding an office or director position from any company. Dittman is no longer allowed to appear or practice before the SEC as an accountant.

Sears and Dittman have also been charged with crimes related to the fraud by the U.S. Attorney’s Office for the District of Colorado.

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Casino Mogul Adelson Makes Huge Donation to Anti-MMJ PAC

9/19/2016

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Sheldon Adelson, the CEO of Las Vegas Sands Corp., has donated $1 million to the Drug Free Florida Committee, a political action committee trying to defeat Florida’s medical marijuana ballot initiative, according to a report from the Associated Press. Two years ago, the billionaire casino mogul donated $5.5 million to Drug Free Florida to defeat a similar amendment.

A constitutional amendment in Florida requires 60 percent of the vote to pass. In 2014 a similar amendment garnered 57.6 percent of the vote.

Adelson is a well-known prohibitionist who regularly makes huge donations to the Republican Party. His second, and current, wife, Miriam Ochshorn, founded a substance abuse center and research clinic at Sourasky Medical Center in Tel Aviv, Israel, her native country.

According to a report from the Chicago Sun Times, Adelson forced the editorial board of the Las Vegas Review-Journal to drop its pro-cannabis stance after purchasing the paper earlier this year ahead of the state’s recreational-use vote in November.

In July, Mel Sembler, a St. Petersburg real estate developer and Adelson ally, donated $500,000 to the committee.

Florida is one of four states voting on medical cannabis initiatives in the general election. Five others will vote on recreational legalization measures.

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Massachusetts Mayor Vetoes a Public-Use Ban He Recommended

9/19/2016

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Amesbury, Massachusetts Mayor Ken Gray has vetoed a public-use of cannabis ban — one he recommended to the city council — citing concerns that the ordinance did not consider medical marijuana use, according to a report from the Eagle-Tribune. The ordinance would have levied a $200 fine on anyone found using cannabis in public.

The veto comes following a public outcry during a City Council meeting where citizens expressed concerns that the ordinance could negatively affect patients using medical cannabis. The measure was recommended to Gray by police Chief Kevin Ouellet, who “didn’t have any objections” to the mayor’s veto because another version is still likely to pass after some changes. In a letter to City Clerk Bonnijo Kitchin, Gray indicated that he wasn’t vetoing the ordinance because he is opposed to its intent, but rather “to ensure without doubt that we do not inadvertently implement an enforcement mechanism that unfairly impacts patients who use these substances as necessary forms of medicine.”

“The only way that I have of slowing this thing down is to veto it, otherwise it goes into effect,” Gray said in the report. “We are not really in a huge hurry to get this done. I don’t see any reason why we have to rush to get it done. It has already taken several months, so let’s take a pause to relook at it and make sure that we are doing this properly.”     

The City Council has 21 days to override the veto or consider the ordinance rejected.

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Large indoor cannabis plant's cola bud.

Why Cannabis Companies Can’t Afford to Ignore Data and Analytics

9/16/2016

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Legalization — and the infrastructure that follows it — enables the cannabis industry to embrace business intelligence that is already standard in other industries. This is the story so far for states that have legalized, and trends show that national legalization and the mainstream normalization of cannabis are quickly becoming a very real possibility.

With active marketplaces already up (or nearly underway) in Colorado, Washington, Oregon, and Alaska — as well as an upcoming adult-use vote in California and several other states this November — the cannabis industry is experiencing massive upheaval on its way to becoming a mainstream industry. Therefore, it must (and will) become as cutting-edge as any other if it is to carve out a niche for itself in the modern economy.

To that end, an entire subindustry of ancillary businesses is springing up. These are companies that provide assistance to cannabis market participants with regulatory compliance, general business practices, and data-based decision making. Many firms collect and analyze data on the new industry and provide this information to clients on a proprietary basis. This data allows industry participants to capture information efficiencies which are usually unavailable in illicit or medical markets. Often, companies providing this data are operated by individuals with experience in other, more mainstream markets.

Cannabis Benchmarks is one such company. Founded in early 2015 by CEO Jonathan Rubin, Cannabis Benchmarks is owned by New Leaf Data Services LLC and provides wholesale price information to those on the cultivation side of the industry. “We aim to be the Kelly Blue Book of wholesale cannabis,” Rubin said.

Although the company is performing well and expects to expand soon, he often speaks of his company in futuristic terms, with an eye to the continuing development of the cannabis industry. For example, the firm’s Professional level service — offered in partnership with GlobalView — is geared toward international commodity traders in the cannabis futures market (which doesn’t exist yet). Those that purchase the service will gain access to historical cannabis price data in a dashboard similar to Bloomberg Terminal, and can perform various analyses using data on climate, macroeconomic trends, utility prices, and more. Rubin hopes to establish a firm first-mover advantage with those interested in cannabis futures information before such a market even develops.

There are many other companies that supply similar or related ancillary services to the cannabis industry, including New Frontier, The ArcView Group, BDS Analytics, and a host of consulting firms which provide clients with custom consulting services.

New Frontier and ArcView are partners on the notable report “The State of Legal Marijuana Markets” — now in its 4th edition — and ArcView is a giant in industry fundraising and other activities. Their report on the potential for the California adult-use market has received extensive mainstream coverage.  New Frontier has also published reports on Oregon, California, Nevada, global markets, energy efficiency in the industry, cannabis investing, and cultivator revenues. This summer, New Frontier launched Equio, an online data platform that allows cannabis retailers to track inventory and sales, compare sales to regional averages, and keep up with trends in consumer strain preferences.

BDS Analytics offers a similar service with its GreenEdge platform (albeit with access to more transaction data) which is now free of cost for all members of the National Cannabis Industry Association. GreenEdge offers retailers detailed information about market trends, broken down into many categories of products, based on over 30 million transactions. BDS also recently launched a consumer research division. Most analytics firms currently are cultivator-oriented, but consumer research will become increasingly important and common as the industry develops and moves toward a brand-based market.

It is important to note that all of this is more or less standard in other industries. “What we’re doing already exists in every other industry,” says Roy Bingham, CEO of BDS Analytics. Legalization measures in other states will only feed into the industry’s upward cycle.

Already, many individuals from traditional industries are shifting to cannabis as a viable career alternative. Rubin and Bingham both have extensive experience in traditional industries. Rubin got into the cannabis analytics industry after he was unable to evaluate a company’s investment proforma due to a lack of wholesale price information. Bingham, with experience in mergers and acquisitions, is more direct about how he got involved: “Opportunity knocks.”

California will likely legalize adult-use cannabis this fall, based on polling that shows a majority of voters in favor of Proposition 64. If it does, a gigantic consumer market will open up and the state will become a keystone in the national and international fight to reform cannabis laws. Capital and labor will flow into the state, and there will be many more companies, investors, and traders in desperate need of business intelligence.

The only way is up.

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President of Mexico Keeping Tabs on California Legalization Bid

9/16/2016

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Mexican President Enrique Peña Nieto is “paying close attention” to California’s recreational-use vote this November, according to California state Senator Ben Allen, who met with the head-of-state yesterday. If the state passes Proposition 64, it would put pressure on Mexican lawmakers to reform the country’s cannabis laws, according to a Reuters report.

The meeting with state legislators was focused on trade and border issues, but lawmakers who attended said the president brought up the initiative without getting into details and the topic was not mentioned in the presidency’s report about the meeting.

In April, Peña Nieto introduced legislation that would allow Mexicans to possess up to one ounce of cannabis for personal use and has said the U.S. and Mexico should not diverge on marijuana policies. The decriminalization bill has stalled in the country’s Congress.

The bill, and the interest in California’s vote by Peña Nieto, is proof he has modified his conservative views on cannabis since his 2012 election. The country, like many South American nations, is constantly battling drug cartels, and legalization is considered a potential tool for pushing cartels out of the marijuana trade.

Legal cannabis is already available in the South American nation of Uruguay and Colombia legalized marijuana for medical and scientific purposes in December.

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Cannabis leaf under the glow of indoor LED grow lights.

Washington State Officials Expand Testing Program

9/16/2016

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Washington’s Liquor and Cannabis Board is going to begin randomly testing cannabis products for banned pesticides, the Associated Press reports. The agency is paying the state Department of Agriculture more than $1 million to hire two full-time employees and buy new equipment to conduct the tests.

According to a Seattle Times report, Washington will become the first state to mandate randomized testing of cannabis products.

Rick Garza, the LCB director, said the move “will send a strong message” to producers using illegal pesticides, who will be subjected to “significant penalties” including license revocation if caught.

“Testing for pesticides is a complex and costly process,” Garza said in a statement. “Labs need specialized equipment and highly trained staff to carry out the tests. This agreement will satisfy those obstacles.”

Since the first legal cannabis cultivation licenses were awarded in 2014, the board has conducted 45 investigations into the use of pesticides outlawed under the law – but only after receiving complaints from the public about alleged misuse. The new equipment will allow 75 samples to be tested per month for more than 100 unapproved pesticides. According to John Scott, pesticides program section head at the Department of Agriculture; Colorado has conducted more than 100 investigations into pesticide use this year, finding that about 40 to 45 percent were not in compliance with the law.

Agriculture Department spokesman Hector Castro said growers using outlawed pesticides are “on notice.”

“This should be a real game-changer for the industry in terms of public safety,” he said.

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Study: Fatal Accidents Less Likely to Involve Opiate Use in MMJ States

9/16/2016

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A Columbia University Mailman School of Public Health study has found that drivers in states with medical marijuana programs were less likely to test positive for opioids after fatal car accidents, according to a Chicago Tribune report.

“In states with medical marijuana laws, fewer individuals are using opioids,” the authors concluded in the study published in the American Journal of Public Health, which analyzed federal crash data in 18 states from 1999 to 2013.

June H. Kim, the study’s lead author, said the results of the study are not unexpected.

“We would expect the adverse consequences of opioid use to decrease over time in states where medical marijuana use is legal, as individuals substitute marijuana for opioids in the treatment of severe or chronic pain,” Kim said in the report.

In the analysis, the greatest reduction of opioid involvement in fatal car accidents was among drivers aged 21 to 40, who are most likely to use medical marijuana in state’s where it is available. The study adds to a growing body of academic work suggesting medical marijuana is an effective alternative to combatting opioid use. A paper published in Health Affairs found that physicians in legal states write 1,826 fewer doses of opioid-based painkiller per year.

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Colombia Farmer Collective Hoping for Cannabis Cultivation License

9/16/2016

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A group of farmers in Corinto, Colombia has started a collective aiming to become the prime supplier for the country’s new legal cannabis market, according to a Guardian report. Under the law passed early this year, marijuana is legal for medical and research purposes in Colombia.

Currently, police estimate that 100 hectares of land in Corinto is being used for illegal cultivation, representing about 50 percent of all illegal crops in Colombia. The collective, Caucannabis, hopes to bring some of that product to the legal industry.

Betania Rodriguez, a cooperative member, said that marijuana and coca are about the only options farmers in the region have to make a living. The government has so far issued licenses to three companies, but those licenses only currently allow for the extraction of oils and resins from the plants, so — under the current law — these rural farms growing marijuana are still committing a crime.

“It’s illegal but it’s all we’ve got,” Rodriguez said in the report.

The licensed companies will be able to cultivate plants eventually, however, and members of Caucannabis say they know more than the companies about growing the plant. If the industry is going to have any real impact in the nation, traditional marijuana growers should supply the cannabis, the farmers argue. However, many of these traditional growers have criminal records due to their role in the illicit trade, and the law says that no one with a record can be issued a license to legally grow.

Hector Fabio Sanchez, the leader of the co-op, says those operating illegally are “eager” to bring their businesses into the formal market.

“But things need to move quickly,” he said. “If it takes two years to get going people will just say, ‘Oh, it was all a lie.’”

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