Black Caucus to Meet With Maryland Governor Over Lack of Diversity in MMJ Licenses

The chairwoman of the Legislative Black Caucus of Maryland is urging the governor to intervene in the awarding of medical marijuana licenses because the selected companies are run primarily by white men, according to a report from the Baltimore Sun.

Of the 30 total available industry production licenses — 15 for growing and 15 for processing — one preliminary license was awarded to an African-American-headed company and two went to companies run by women, the Maryland Cannabis Industry Association said.

“I am completely disappointed with the medical marijuana commission and the decision that they have made in terms of awarding licenses,” Del. Cheryl D. Glenn, chairwoman of the caucus, said in the report. “Clearly, there was no effort at all to factor in minority participation and make sure that it’s inclusive of everybody in the state of Maryland.”

She indicated that the caucus could consider a legal challenge on the grounds that the diversity requirements of the 2013 law were not met.

Members of the caucus are planning to meet with Gov. Larry Hogan on Thursday, but his spokesman said that there isn’t anything he can do about the decisions made by the independent commission who granted the licenses. The Maryland Medical Cannabis Commission received 146 grow and 124 process applications which were reviewed, with identifying information removed, by Townson University’s Regional Economic Studies Institute before the commission voted. At least three of the companies have political ties.     

“The governor’s office has absolutely zero role in this process,” Douglass Mayer, spokesman for Hogan, said. “The legislation was passed under a previous administration. Every single commissioner was appointed by the previous administration.”

Dr. Paul W. Davies, chairman of the commission, said he’s “very happy” with the way the selection process worked and believes the commission’s decisions were unbiased.

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A wide-brimmed cannabis leaf.

New York Gov. Signs Hemp Bill, First Farm Licensed

New York Gov. Andrew Cuomo has signed a bill authorizing the sale, distribution, transportation, and processing of industrial hemp, which aims to help farmers in the state develop a new marketable crop.

JD Farms in Madison County is the first, and currently only, farm licensed by the state to grow hemp, WGRZ 2 reports. It has partnered with Morrisville State College in the development process and will grow the crop on 30 acres.

“This bill makes it possible for us to negotiate price-points with interested buyers and produce statistically relevant data about the current state of the market for other farmers and institutions interested in participating in the program,” Dan Dolgin, co-owner of JD Farms, said in a statement.

According to the bill text, no more than 10 farms will be granted licenses under the program which will be supervised by the Commissioner of Economic Development, a position currently held by Howard Zemsky. The commissioner will issue a report to legislative leaders on the progress of the industry in 2018.

Assemblywoman Donna Lupardo anticipates the crop — which hasn’t been grown in the state in 80 years — will be a boon to farmers and “has the potential for numerous manufacturing opportunities” throughout the state.

The federal government approved a similar plan in 2013.

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Second Arkansas Medical Cannabis Campaign Submits Enough Signatures for Ballot Inclusion

The second potential ballot initiative to legalize medical marijuana in Arkansas has submitted another 34,804 signatures, according to a TVH 11 report. The Arkansas United for Medical Marijuana proposal already had 72,309 verified, and needs a total of 84,859 signatures to qualify for inclusion on November ballots.

If the new batch of signatures is approved by Secretary of State Mark Martin, the proposal — a constitutional amendment — would be one of two choices for voters on the ballot. The measure would compete with the proposal by Arkansas Compassionate Care, which was approved last month.

The Arkansas Medical Cannabis Act, currently due to appear on the ballot, provides for 39 Cannabis Care Centers throughout the state, overseen by the state Department of Health. It includes a grow-your-own provision for patients living more than 20 miles from a care center.

The AUMA proposal would not allow patients to grow their own medicine.

Additionally, the AMCA requires that all of the sales tax revenue collected from the program be reinvested into the program; the AUMA amendment divvies up the profits between the program, the Skills Development Fund, the General Fund and the Vocational and Technical Training Special Revenue Fund.

David Couch, the AUMA proposal sponsor, said he would be “somewhat disappointed” if the plan didn’t hit 60 percent of voter support in the general election. However, advocates worry that both campaigns will be rejected by voters if each appears on the ballot, dealing another blow to patients in the state following the failure to pass a medical marijuana plan in 2012.         

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NY Health Department Releases Two-Year Review of MMJ Program

The New York Department of Health has recommended that five more organizations be authorized to cultivate and dispense medical marijuana over the next two years, and that simplifications are made to the practitioner registration process, according to a review of the program by the department.

As of June 15, there are 601 practitioners registered to recommend cannabis to patients in the state. However, 19 counties do not yet have even one physician enrolled in the program. Nearly 5,000 patients have enrolled, with neuropathies representing the greatest percentage of certifications (34 percent); severe or chronic pain associated with a qualifying condition has the greatest percentage of certifications (54 percent). The average age for patients enrolled in the program is 52.

Currently there are only 17 dispensaries operating in just nine of the state’s 62 counties and New York City. In their report, the department recommends a delivery system that would help ensure adequate access to the drug.

The Health Department has approved nearly all of the patient applications (99.9 percent), with wait times for certification taking about five days; down from 11 days at the program’s start in January.

The Department of Health also recommended “continuing outreach,” encouraging the federal government to remove barriers for medical cannabis research and to open up financial institutions to the medical marijuana sector.

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Bill Allowing CA MMJ Industry to Pay Taxes in Cash Heads to Governor

A California bill allowing medical marijuana dispensary owners to pay their taxes in cash has been sent to Gov. Jerry Brown following its approval by the Senate last week, the Calaveras Enterprise reports. The bill passed the Senate 28-9.

Under current law, businesses that owe more than $10,000 a month in taxes must pay those bills electronically; however due to marijuana’s federal Schedule status, cannabis-related businesses can neither conduct such electronic transactions, nor open bank accounts. While the measure would not open up the sector to financial institutions, it would make it easier for those businesses to pay their taxes. The bill also removes the 10 percent cash tax-payment penalty for the industry.

“Currently, due to the fact that marijuana is still federally classified as a Schedule 1 substance, the medical marijuana industry has been rendered unbankable,” Assemblyman Mike Gipson wrote in his argument in support of the bill. “This leads to companies having to hold large amounts of cash and requires that tax payments be made in cash as well.”

Some Republicans objected to the bill because they viewed it as special treatment for the industry.

“Why are we making exceptions for this industry and not all industries?” Sen. Joel Anderson asked during the floor debate. “What would be the compelling reason to give them special treatment?”

Gov. Brown has not indicated whether or not he will sign the bill into law.

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Slow Counting Could Cost OK MMJ Plan Spot on Ballot

Slow counting of ballot petitions could hurt the chances of a medical marijuana initiative to be put to voters in Oklahoma, according to the Red Dirt Report. The deadline to include the questions for November ballots is the end of the month.

Joe Dorman, a former state representative and supporter of State Question 788, said six to eight staff members are working seven-hour days counting signatures and verifying addresses on a question that would expand the timeframe for ballot signature collection – just one of the two possible ballot questions.

“That’s probably what is going to hurt our chances of SQ 788 making it on the ballot,” Dorman said in the report. “If there aren’t enough staff to count both petitions at once, then we may not make it. The deadline is at the end of August, but you also have to have a 10-day period to review in court for any challenges. That’s going to hurt us significantly on time.”

Initiatives need nearly 66,000 signatures in order for inclusion on Oklahoma ballots. Last week, supporters indicated they were “real close” to securing a spot for their plan. Chip Paul, a spokesman for Oklahomans for Health said the group is within 5,000 signatures either way.

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Officials and Business Owners Gearing up for Oregon’s Recreational Rollout

Oregon’s Liquor Control Commission is processing more than 1,300 applications for marijuana businesses, having processed about 200 so far, almost all of them for growers, according to a report from The Oregonian. Officials hope to complete the review by the end of the year.

Steven Marks, executive director of the commission, said that incomplete applications and extensive local approvals have slowed the process but indicated the review program is back on track.

“It’s going smoothly, but it’s a slower pace than expected,” he said in the report.

Licensed producers have already harvested 5,000 pounds of marijuana, according to the state’s seed-to-sale tracking system; however, that represents freshly harvested plants, not dry flower. About 700 pounds of that is intended for the seed market. Many licensed producers are being forced to stockpile plants because they need to be tested by a certified laboratory before being made available for sale.

A handful of retail stores operating under the new recreational market will open on Oct 1. Marks said he expects those businesses to represent to “a prelude not a crescendo of retailers.” The department has pulled staff from the alcohol agency to help review applications, with the hope they have enough supply available for retailers when they open their doors.

Medical marijuana dispensaries have the opportunity to convert their existing business to the recreational model by the end of the year.

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Israeli MMJ Patient Sues Government Over ‘Tainted’ Cannabis

A medical marijuana patient in Israel is suing the government after they revoked his grow license, claiming that the Health Ministry is responsible for providing him with the tainted plants, TheMediaLine.org reports.

“Patient R,” one of just a dozen patients given a license to grow their own cannabis, says he discovered mold on the plants from Teva-Adir, a licensed supplier, and that he became sick after ingesting marijuana from the producer. His license was revoked after he reported the incident to the Health Ministry.

“He is suing the health ministry for providing him with dangerous substances and for not having clear rules for using pesticides in medical cannabis in Israel,” Oren Lebovich, chairman of the Green Leaf Organization, said in the report.

Yani Peretz, a criminal lawyer, sent samples from Patient R and two other suppliers, Tikun Olam and Seach, to the Israeli Chemical Testing Laboratory. Dr. Noam Chehanovsky, a cannabis researcher, analyzed the samples and found not only a potentially dangerous amount of pesticides in the Tikun Olam sample; but it had significantly lower values of the advertised active compounds – as much as 20 percent.

One strain, Eran-Almog, showed THC levels of 3.2 percent, far lower than the 24 percent to 28 percent advertised levels.

“With these bad results, I would have expected the health ministry to have been more determined to look into this finding,” Peretz said. “The Ministry of Health asked for more information from me instead of checking the suppliers.”

Ma’ayan Weisberg, head of International Relations for Tikun Olam, declined to comment on the findings because they were not given enough information about the testing process and the samples used by Chehanovsky.

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Draft Regulations for Pennsylvania MMJ Program Released

Pennsylvania officials have released a draft of the rules that will govern the medical marijuana growers and processors in the state, The Inquirer reports. The rules define how marijuana should be cultivated, protected, and tracked.

Some of the key rules include:

  • Prohibition of out-of-state cannabis plants — growers will be allowed a 30-day window to import seeds for their first crops, after which crops must be grown using clones, grafts, and seeds from in-state producers.
  • Pest, insect, and fungi should be controlled using essential oils and other organic materials.
  • Public officials and state employees are barred from holding a financial interest in medical marijuana companies and are not permitted to work in the industry for one year after leaving their government post.
  • Permits and location sites to grow marijuana can only be transferred if approved by the state.
  • Each medical marijuana entity must have a diversity plan, and the Department of Health must promote racial diversity ensuring that certain opportunities are available for minority owners.

Patrick Nightingale, a former Alleghany County attorney who now serves as the executive director of the Medical Cannabis Society, said the rules give the industry “a pretty clear roadmap” of what the Department of Health considers important.

Some advocates praised the new proposals; however Chris Goldstein, a Philly.com columnist and cannabis activist, said that despite the diversity rules small-scale black business owners, like any would-be medical marijuana business owner in the state, still needs “millions in the bank” in order to qualify for a state permit, possibly making the diversity rules tough to enforce.

The Health Department indicated they would be releasing draft regulations for dispensaries by the end of the year.

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Auburn, WA City Council Passes Ordinance Restricting Cannabis Operators

The Auburn, Washington City Council passed an ordinance restricting the number of retail dispensaries, processors and producers in the city, according to a report by the Auburn Reporter. The measure limits the number of such businesses operating in the city to two.

The move comes following a lawsuit by Green Solutions Place against the city. The dispensary was given a license by the state to open in Auburn despite a local moratorium already in place limiting the number of dispensaries to two. That moratorium was not recognized by the state Liquor and Cannabis Board, who told cities it would raise the number of allowable dispensaries in jurisdictions last year.

The ordinance reestablishes the two dispensary limit, grandfathering in any existing dispensaries over that limit; restricts producing and processing facilities to a minimum of 4,000 square feet and a maximum of 90,000 total square feet; requires officials to create an action plan for the City Council and Planning Commission to review the potential and ongoing issues related to the recreational cannabis industry; and includes references to the regulatory and statutory provisions dealing with the use of organic solvents.

The ordinance will be the law of the land until the City can write zoning regulations to regulate the sector.

“The real solution to this is going to be found in zoning, which we’re working on right now,” City Councilman John Holman said in the report.

The rules were adopted unanimously by the City Council.

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A collection of clones on display in a California cannabis dispensary.

Canada’s Largest MMJ Producer Launches Artist-in-Residence Program

Canada’s largest producer of medical cannabis announced yesterday that the latest addition to their team is not a master grower, business consultant, or sales associate. Rather, the latest team member to join Tweed Inc. is actually Montreal-based documentary filmmaker and photographer Ezra Soiferman, who will be the first participant in the company’s new Artist in Residence program, according to a press release issued yesterday.

According to the release, it is believed that Soiferman is the first artist ever to hold such a position in the cannabis industry.

“As an emerging brand in an emerging industry, we want to be able to tell our story in creative ways to make memorable and unique first impressions,” Tweed’s Chief Creative Officer Martin Strazovec said in the report. “Ezra is a gifted storyteller who will help us expand our reach through his art.”

Soiferman, who co-founded and is the director of the Montreal Film Group, told Ganjapreneur that he first began investigating cannabis as a cultural icon more than 20 years ago. Since then, he’s followed the hemp and cannabis industries “religiously,” and has dedicated several projects to the cause throughout his career — including a project called Hemp for the Homeless and, more recently, a documentary called Grass Fed that follows comedian Mike Paterson through a journey of medical cannabis discovery.

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Ezra Soiferman, Tweed Inc.’s new Artist-in-Residence, is a Montreal-based documentary filmmaker and photographer.

“What interests me most about the cannabis plant is its sheer diversity,” said Soiferman. “Frankly, there’s nothing I’ve encountered on the planet that can do as many things, and I swear I’ve searched high and low. … As a documentarian, this fascinates me, and as an artist, it inspires me.”

According to the press release, Soiferman’s projects throughout his year-long residency at Tweed will cover themes pertaining to cannabis and hemp, as well as projects that “speak to the Canadian cities and towns where [Tweed] operates.” Soiferman’s first project under the new partnership is a photo-based music video called “The Walls of Montreal,” which highlights the beautiful murals and street art of Quebec’s largest city.

When asked about how he landed the gig, Soiferman said that he approached Tweed with the idea first. He thought the company, with its “open-minded, sunny and ‘we love firsts’ attitude,” would be a perfect fit for the partnership that ultimately seeks to “bring cannabis to art and art to cannabis.”

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Nearly Two Thirds Support Legalization in California

According to a University of California, Berkeley Institute of Governmental Studies poll, 63.8 percent of respondents supported legalizing cannabis for recreational use, with 36.2 percent opposed. The results are good news for advocates, as California voters will decide whether or not to legalize in November.

Democrats and independents supported the measure 73.8 percent and 62.2 percent, respectively. Republicans opposed legalization 53 percent to 47 percent, but were more supportive than they indicated in an IGS poll last year when 38.4 percent backed legalization, compared to 61.6 percent opposed.

The question did not poll support for Proposition 64, rather the broader question of legalization for adult use under a regulatory scheme similar to alcohol.

Support was highest among young people, aged 18 to 24 (74.5 percent to 25.5 percent) and lowest among people aged 65 and older (57.8 percent to 42.2 percent).

A Probolsky Research poll from February found 59.9 percent of Californians would vote yes on the ballot measure if the election were held at that time. In that poll, 36.7 percent were opposed.

Prop 64, if approved, would create a formal cannabis market, adding a 15 percent sales tax along with a cultivation tax of $9.25 per ounce of flower and $2.75 per ounce of leaves. The measure also includes language banning corporate or large-scale entities from entering California’s cannabis market for five years.

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Justice Department Announces it Will Stop Using Private Prisons

The Justice Department has announced that it plans to end its use of private prisons. In a memo released Thursday by Deputy Attorney General Sally Yates, which was obtained by The Washington Post, Justice Department officials were instructed not to renew contracts with private correctional facility operators, or to “substantially reduce” the scope of their contracts.

Yates wrote, “[Private facilities] simply do not provide the same level of correctional services, programs, and resources; they do not save substantially on costs; and as noted in a recent report by the Department’s Office of Inspector General, they do not maintain the same level of safety and security.”

This announcement comes on the heels of recent negative attention toward private prisons in the press. The report that Yates referred to, released by the Inspector General last week, found that private prison facilities had more safety and security incidents than facilities run by the Bureau of Prisons, and that sub-par conditions for inmates were a major factor. Earlier this year, an undercover reporter for Mother Jones released a lengthy, scathing report of his experience working as a prison guard in a private facility, in which he detailed disturbing training practices, use of excessive force, and a general disregard for safety among private prison staff. In a different report that came out this year, The Nation wrote about deaths at private prisons that occurred under suspicious circumstances. On top of that, a major talking point for Democratic Presidential candidate Bernie Sanders has been to dismantle and abolish for-profit prisons throughout his campaign.

While there are over 1.6 million prisoners in the United States and only about 30,000 of them are housed in private prisons operating under contracts with the Justice Department, this shift in policy could be an indicator that private prisons are on the way out across the board. There are still many prisons that have contracts at the state level, but as the general public rejects the idea that jailing people for profit is OK, these contracts will come under increased scrutiny and government bureaucracies will come under increased pressure to cancel them.

Although this news does not specifically address inmates in prison for charges related to cannabis, it can be viewed as another indicator of a gradual change in government mentality regarding the efficacy of the Drug War and its destructive policies.  The change needs to happen faster, and there are still thousands of people unjustly imprisoned for owning or growing a plant, but this blow to the private prison lobby is good news for the legalization movement nonetheless.

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Consultant Pleads Guilty to Role in Native American Cannabis Resort Scheme

One of the two consultants charged for their role in a Native American tribe plan to open a marijuana resort pleaded guilty this week to one count of conspiracy to possess cannabis, the Associated Press reports.

Jonathan Hunt, vice-president and cultivation expert for Monarch America, entered the plea as part of a deal with law enforcement. The class 6 felony is punishable by up to two years in prison and a $4,000 fine.

Eric Hagen, CEO of the Colorado-based firm, pleaded not guilty to charges of conspiracy to possess, possession, and attempt to possess 10 pounds of cannabis or more.

“I am yet unaware of any evidence that my client possessed even a gram of marijuana,” Mike Butler, Hagen’s attorney, said in the report. “The marijuana belonged to the Santee Sioux Tribe. They paid for it. They had legal ownership of it at all times.”

The charges stem from the duo’s role as consultants to the tribe, who planned “an adult playground” on tribal land in South Dakota. The tribe abandoned the plan eight months ago after South Dakota Attorney General Marty Jackley warned that changes to tribal law permits regarding cannabis would not apply to non-tribe members.

Hunt is scheduled to be sentenced Dec. 19, but the date could be changed depending on Hagen’s case.

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Boulder, CO Annexation Plan Threatens Cannabis Companies

Cannabis companies in east Boulder, Colorado are worried that a plan by the city to annex 15 properties will force them out of business because they would be forced into the jurisdiction of the city’s stricter laws, according to a Daily Camera report.

The properties include seven cannabis-related businesses, which hold a total of 26 licenses to manufacture and sell marijuana products. The businesses are currently under the authority of Boulder County, and a move into the city dominion would mean that the businesses would need to apply for city-issued marijuana licenses.

Kathy Haddock, the assistant city attorney, has assured the business owners that they would be able to maintain their current county licenses while they apply for city permits; however the owners are concerned that they won’t be eligible for city permits due to their proximity to other cannabis manufacturers, or the on-site weight restrictions levied by the city.

Dan Anglin, founder of Americanna, says he typically has 3,500 pounds of candy being processed at his Arapahoe facility – far exceeding the 150-pound limit allowed within the city limits.

“If they include the weight of the candy, I’m out of business,” he said in the report.

Anglin is also concerned with Boulder’s 8-foot grow room limit. His grow rooms are twice that size, and to comply with the city code would require hundreds of thousands of dollars in construction to the site.    

“Most of the businesses are already compliant with Boulder’s laws,” Haddock said, “and the city fully intends to work with those who aren’t…There’s no intent to shut anyone down.”

The City Council approved the measure 5-3 on a first reading. It will be considered by the Planning Board before it heads to the council for a second reading and public hearing.

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OH Supreme Court Seeks Rule Changes Allowing Attorneys to Help MMJ Companies

The Ohio Supreme Court has directed its staff to write a draft amendment to the Ohio Rules of Professional Conduct that would permit attorneys to help establish medical marijuana businesses in the state, Cleveland.com reports.

Last week, the court’s Board of Professional Conduct issued a non-binding opinion effectively barring attorneys from working with marijuana businesses, and from participating as patients in the program. The opinion suggests that the “personal use of medical marijuana…may adversely reflect on a lawyer’s honesty, trustworthiness, and overall fitness to practice law.”  

“Although non-binding, the court is aware that the advisory opinion has led some lawyers to question whether they can assist clients in complying with the new law,” Chief Justice Maureen O’Connor said the report. “The court hopes to act expeditiously in addressing their concerns and, if necessary, amend ethics rules to clarify the role of attorneys in light of the new law.”

The amendment proposal will be subject to public comment before being adopted.

“Again, the Court intends to act as swiftly as possible,” Chief Justice O’Connor said in a statement. “However, we do not want to rush the process to the point of creating additional problems.”

Ethics panels in 24 others states with medical cannabis programs have ultimately allowed attorney involvement in the industry, with many having to update their professional rules.

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Preliminary Cultivation Licenses Awarded in Maryland

Maryland has awarded preliminary medical marijuana licenses to more than 20 companies to cultivate and process cannabis in the state, the Baltimore Sun reports. At least three of the companies have political ties.

Del. Dan K. Morhain will serve as the clinical director for Doctor’s Orders Maryland, who was approved grow and processing licenses. Morhain, a physician and a Baltimore County Democrat, has been the chief advocate in the legislature for medical marijuana. He currently represents Baltimore County in the House of Delegates.

Holistic Industries of Prince George County was buoyed by a letter of recommendation from Senate President Thomas V. Mike Miller – who called the note “nothing spectacular.” Miller wrote letters for other companies with only Holistic Industries netting a license. Former State Health Secretary Nelson Sabatini serves as a Holistic Industries partner; while Gerry Evans, an Annapolis lobbyist, represents the company.

Frank Boston, another Annapolis lobbyist, serves as a minority partner in Green Leaf Medical, who was granted a growing license.      

Green Leaf Medical president and CEO Philip Goldberg believes the selection process was fair but was “sure there are people who didn’t win who don’t feel that way.”

The Maryland Medical Cannabis Commission received 146 total grow applications and 124 license and process applications. They had 15 licenses available for both categories and some applicants won licenses for both.

“I’m excited that we have a great number of outstanding companies willing to help sick people in Maryland,” Dr. Paul W. Davies, chairman of the commission, said in a statement.

Next, the companies will be subject to a second stage review which includes financial reviews and more thorough background checks.

The commission has not yet announced the recipients for the 94 dispensary licenses available in the state – for which, they received more than 800 applications.  

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Top Mass. MMJ Doctor Steps Away Citing ‘Hostilities’

A long-time Massachusetts medical marijuana doctor announced she will no longer recommend cannabis therapy, citing the medical license suspension of two colleagues due to “over-recommending” practices, according to a Valley Advocate report.   

In a letter to her patients and the Advocate, Dr. Jill Griffin said the step was necessary because of “hostility toward cannabinopathic medicine from government regulators and the medical establishment.”

“Several colleagues now face disciplinary action arising out of their practice in this field,” Griffin wrote. “Although I know, as a matter of my experience and training, that I have done nothing wrong in caring for you, the risk of losing my medical license is a peril I can no longer endure.”

Griffin is one of just 13 doctors in western Massachusetts who provides certifications for the program. She wrote more than half – 3,284 – of the 6,270 recommendations in the region.

According to the report, her office voicemail message indicates that she might reconsider the decision following the outcome of the recreational-use ballot measure vote in November.

Dr. Bruce I. Goderez, a psychiatrist certified to recommend cannabis in the state, said the lack of physicians participating in the program is a “big problem.”

According to the Department of Health, just 155 doctors are certified with the program.

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Ohio Village Passes Resolution Preventing MMJ Industry Bans

As some Ohio municipalities are banning medical marijuana dispensaries, one central Ohio village is keeping an open mind.

The Johnstown Village Council voted 6-1 to approve a resolution not prohibiting medical dispensaries from operating in the town, WBNS-10TV reports. Village Manager Jim Lenner said the industry could benefit the small town’s local economy. He pointed to a vacant 150-acre space in the city limits that could serve as a cannabis campus – used for cultivation, production, testing, and research and development. The site neighbors an Apeks Supercritical facility.    

“It kind of tells them we’re open to the idea. We’re not going to shut you down,” Lenner said in the report. “All we’re simply saying is ‘let’s keep it open.’ Let’s keep the door open and see if we can help our community with increased tax revenue, jobs.”

The cities of Lakewood, Troy, Brooklyn, and Tipp City have each enacted 180-day bans on medical cannabis businesses. Beaver Creek, Lima, Brecksville and North Royalton are working on comparable moratoriums. Rocky River has enacted a full-on ban, and Upper Arlington is considering the same.

The medical cannabis law takes effect on Sept. 8; however, officials do not plan for the program to be rolled out until Sept. 2018.   

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Federal Appeals Court Bars DOJ from Funding MMJ Prosecutions

A federal appeals court has ruled that the U.S. Department of Justice cannot spend money to prosecute federal medical marijuana cases if the defendants are in compliance with the laws set forth in their state, according to a report from Reuters.

The ruling affirms the so-called “Rohrabacher-Farr” amendment passed by Congress in 2014, which defunded federal “interference” in state medical cannabis systems.

Robert Raich, an Oakland, California-based attorney specializing in cannabis litigation, said the ruling clarifies the issue for courts and federal law enforcement.

“Finally, the Ninth Circuit is providing clarity and overruling a number of district court judges that were ignoring the will of Congress,” he said in a Cannabis Now report. “This decision indicates that the federal government should stop its attack on state-legal cannabis providers and allow the states to create and implement frameworks that serve the medical needs of their citizens.”  

Judge Diarmuid O’Scannlain, one of the three 9th Circuit judges who issued the unanimous ruling, wrote that their decision does not mean that medical marijuana providers are immune from federal law.

“Congress could restore funding tomorrow, a year from now, or four years from now,” he wrote, “and the government could then prosecute individuals who committed offenses while the government lacked funding.”

Following the decision, defendants in 10 cases in Washington and California argued for dismissal of federal charges levied against them. Those charges will likely be dropped by prosecutors so long as the defendants have “strictly complied” with regulations in their respective states.

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Cannabis Growers’ Fair Attracts OR Growers from Around the State

The Oregon Cannabis Growers’ Fair last weekend attracted people from every corner of the state — and from beyond Oregon’s borders — to Salem, the state’s capital, for a two-day event of cannabis networking and celebrating the art of cannabis cultivation.

The fair took place in an exhibition hall on the Oregon State Fairgrounds.

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The weekend’s festivities took place in an exposition center on the Oregon State Fairgrounds.

The exhibition hall was packed with more than 80 exhibitors, but that wasn’t the event’s main draw: the fair’s large trade show presence was actually overshadowed by several rows of live cannabis plants that had been transported from around the state and lined along one entire wing of the exhibition hall. These plants were submitted by Oregon growers to be judged by a panel of cultivation experts headed by Ed Rosenthal, author of several popular cannabis growing guides. As per the fair’s rules, the submitted plants were not allowed to have any buds.

Rosenthal wore a shirt printed with a cannabis leaf floral pattern for the occasion. He and other judges spent several hours on Saturday perusing the dozens of cannabis plants entered in the competition. The competition’s nine winners were announced on Saturday by Rosenthal as the event’s first day came to a close. Plants had been broken up into categories based on whether they were a sativa, indica, or hybrid — there were first, second, and third place prizes for each of the three categories.

'Ganja Guru' Ed Rosenthal speaks with members of the press about his role in the Oregon Cannabis Growers' Fair judging process.
‘Ganja Guru’ Ed Rosenthal speaks with members of the press about his role in the Oregon Cannabis Growers’ Fair judging process.

“The first thing is health and to make sure they don’t have infections and then to make sure they … don’t have nutrient deficiencies. Then, we look at the structure of the plant: Has it been getting as much sun as it should be getting? Is it sunburned?” Rosenthal told ABC News.

The nine winning plants will be featured this year in the Oregon State Fair, which runs from August 26 to September 5 at the Oregon State Fairgrounds.

The nine winning plants of the weekend, separated by category, are:

Sativa:

Indica:

Hybrid:

  • 1st place, Canna Manna
  • 2nd place, Royal Ambrosia
  • 3rd place, AHSG Farms

 

The winning cannabis plants will be kept separate from the rest of the Oregon State Fair in a greenhouse, and fair workers will be checking IDs to make sure all who enter that greenhouse are 21 or older. It will be the first time in the U.S. that cannabis plants will be featured in a state fair.

Event organizer Mary Lou Burton addresses the crowd before Ed Rosenthal announces the nine winning cannabis cultivators.
Event organizer Mary Lou Burton addresses the crowd before the nine winning cannabis plants are announced.

The Oregon Cannabis Growers’ Fair also offered presentations and Q&A sessions featuring representatives from the Oregon Department of Agriculture and the Oregon Liquor Control Commission. These discussions informed audience members — most of whom were professionally involved in Oregon’s cannabis space, or were eyeing the industry for potential business opportunities — about how to stay regulatory compliant despite the industry’s rapidly changing landscape.

“This event was so big for this industry,” fair organizer Mary Lou Burton wrote in an email to Ganjapreneur. “The growers, retail stores, and exhibitors were amazed at the coverage we received… We had press from all over the world at the event and calling us on the phone.”

 

According to Burton, three-quarters of this year’s exhibitors have already signed up for next year’s event, marking the inaugural Oregon Cannabis Growers’ Fair as a major success.

Continue scrolling to see more pictures from our weekend at the event.

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Pro-Legalization Advocates Set Aside $800,000 for Vegas Ad Buys

The Coalition to Regulate Marijuana Like Alcohol in Nevada has reserved more than $800,000 for commercials in Las Vegas, with plans to run ads from October through Election Day, the Associated Press reports. The media buy will be in support of Question 2 — the ballot measure to legalize cannabis for recreational use.

According to coalition spokesman Joe Brezny, the content of the ads has yet to be finalized, but he is confident about the initiative’s chances of being approved by voters in November.

“Marijuana prohibition has been a failure and people see that there is a better way to go about this,” he said in the report.

As of mid-June, the coalition has raised $285,000 in funding, most of it coming from Nevada dispensaries including The Grove Wellness Center, Silver State Relief, The Source, and the Nevada Dispensary Association.

Assemblyman Pat Hickney (R), co-chairman of Nevadans for Responsible Drug Policy, said groups opposing the measure will likely also air ads. Those ads will likely be funded by business sectors opposed to legalized cannabis, such as the gambling industry, along with the Coalition Against Legalizing Marijuana. The contradictory coalition has not reported raising any funds so far this year, but will likely report any fundraising when required in mid-October.

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Montana MMJ Providers Close Shop as New Law Takes Effect

Medical marijuana providers in Montana are closing for business ahead of new rules being implemented in the state that prevent dispensaries from serving more than three patients, the Missoulian reports.

The new rules, which also include an automatic review of doctors who recommend cannabis to more than 25 patients, take effect on Aug. 31 – 10 weeks before voters will decide whether or not to revert back to the old system.

The new rules were passed by the Montana legislature in 2011 over concerns that people with minor ailments were accessing the drug for mostly recreational use. The law underwent five years of legal challenges which prevented its implementation. More than 30,000 Montana residents have registered in the program.

Nick Frentsos, owner of Bloom Montana, said it is “a financial decision” to close his shop, which opened a year ago, and serves more than 100 patients.

“…that financial decision is affected by the legal limits of the new law,” he said in the report. “If we could provide for maybe 12 people, then it might be reasonable to stay open. But that’s not the case.”

At the program’s peak in June 2011, 4,650 dispensaries operated in the state. As of last month, that number had dropped 89 percent to 487.

The ballot initiative, I-182, would remove the provisions of the 2011 law, add post-traumatic stress disorder to the list of qualified conditions, and require product testing.      

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Ohio MMJ Sales Estimated Between $200 and $400 million

According to a Marijuana Business Daily preliminary analysis, Ohio medical marijuana sales could reach $400 million two or three years after its implementation, Cleveland.com reports. The analysis estimates the low-end figure at $200 million.

The state would see about $23 million in sales tax revenues if the market reaches the high-end figure.

“Ohio would definitely be a powerhouse in the industry and a lot of that is because of the state’s population and the inclusion of pain on the medical conditions list,” Chris Walsh, editorial director of the trade publication, said in the report.

The figures are based on the qualifying conditions included in the program, and sales in other states with similar legislation. In states which include chronic pain as a qualifying condition, between 1 and 2 percent of the population register for the program. In Ohio, that could mean between 116,000 and 232,000 people. In Colorado, which has about half the population of Ohio, medical marijuana sales totaled $408 million in 2015. About 2 percent of Colorado’s residents are enrolled in the medical marijuana program.

Under the Ohio law, about 20 conditions qualify for medical cannabis use. While the law takes effect Sept. 8, it is not expected to rollout until Sept. 2018.    

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