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Massachusetts Supreme Court Rules Out Workers Comp for Medical Cannabis

10/29/2020

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The Massachusetts Supreme Judicial Court on Tuesday ruled that employees using medical cannabis for a work-related injury cannot get reimbursed for it through worker’s compensation, Courthouse News reports. In the unanimous decision, the justices ruled that workers’ comp insurers could, theoretically, still be charged with a federal crime for aiding and abetting someone in using cannabis.

“First, unlike the patients and doctors covered by the act, insurance companies would not be participating in the patient’s use of a federally proscribed substance voluntarily. It is one thing to voluntarily assume a risk of federal prosecution; it is another to involuntarily have such a risk imposed upon you.” – Justice Scott Kafker in the decision

The plaintiff’s attorney, Katherine Lamondia-Wrinkle of the Law Office of Thomas Libbos, argued that workers’ comp insurers and boards limit access to opioids for chronic pain due to the epidemic that has gripped the nation for years. As medical cannabis has been legalized in 33 states, more injured workers are turning to it for relief.

“We have an anti-opioid movement,” Lamondia-Wrinkle said to Courthouse News, “but the court is now taking away the alternative.”

Daniel Wright, a cable installer who injured his knee stepping off a ladder said that with cannabis he was able to wean himself off opioids and other medications, but in the process spent $24,267.86 on legal cannabis from February 2016 to August 2017.

Under the state’s 2012 medical cannabis law “any health insurance provider, or any government agency or authority, to reimburse any person for the expenses of the medical use of marijuana.” The court affirmed that the workers’ comp insurer is a health insurer.

According to the Insurance Information Institute, Connecticut, Minnesota, New Hampshire, New Jersey, New Mexico and New York have allowed, to some extent, workers’ comp reimbursement for medical cannabis.

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Jerry Garcia’s Family Launches ‘Garcia Hand Picked’ Cannabis Line

10/29/2020

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The family of the late iconic Grateful Dead frontman Jerry Garcia has teamed up with Holistic Industries, a multi-state private cannabis firm, to offer Garcia Hand Picked (GHP), Rolling Stone reports.

Done in true Grateful Dead, larger-than-life fashion, the brand will include three flower strains, pre-rolls, and guitar-shaped edibles, packaged with a watercolor print of Jerry wearing his signature sunglasses. The Indica, Sativa, and Hybrid strains come complete with a “curated playlist” of Garcia’s music that was specially-selected to correspond with each strain.

The family wanted to create a “spontaneous” and “harmonious” experience with GHP and “bring people together in the way only Jerry could,” Trixie Garcia, Jerry’s daughter, told Rolling Stone.

Although he was known as a strong advocate for cannabis legalization, Garcia said Jerry would rarely smoke cannabis by himself, instead choosing to consume socially after gigs, on the tour bus, or in the studio. “A joint became a bridge between him and those around him,” she said.

After being delayed by the coronavirus, the brand plans to tour up and down the California coast this November in a tricked-out airstream bus called Bertha, named after the Grateful Dead’s 1971 hit “Bertha.”

Fans who don’t live in California can get in on the groovy vibes with apparel and posters from GarciaHandPicked.com.

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USDA Approves Indiana Hemp Plan

10/28/2020

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The US Department of Agriculture (USDA) on Thursday approved Indiana’s hemp plan – its third approved plan over the last week. The plan will take the state’s Office of Indiana State Chemist’s pilot program and transition it to a full-scale commercial system.

Under the pilot program, hemp cultivators needed a research proposal and had to be linked with a university to apply for a license. Under the USDA-approved plan, farmers will be able to apply for independent licenses starting next month for the 2021 season.

Don Robison, seed administrator for the Office of the Indiana State Chemist, said in a statement that the “plan approval is a huge accomplishment for both farmers and our team.”

“We are looking forward to growing this program and offering more efficient licensing for Hoosier farmers and processing companies.” – Robinson in a press release

Indiana State Department of Agriculture Director Bruce Kettler, who also serves as co-chair of the Hemp Advisory Committee, said the USDA approval “will allow the Office of the Indiana State Chemist regulatory authority and clearly define the rules and regulations around hemp production and processing in Indiana.”

Indiana’s pilot hemp program was signed into law by then-Gov. Mike Pence (R) – now vice president – in 2014.

The USDA has now approved 30 state hemp proposals, including Illinois, Michigan, New Mexico, Oklahoma, and South Dakota just this month. The agency has also approved plans for Puerto Rico and the U.S. Virgin Islands and 37 Native American tribes.

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Monogram Runs Billboards on Borders of Legal Cannabis States

10/28/2020

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Sean “Jay-Z” Carter’s cannabis brand Monogram is setting up billboards on the borders of states with disparate cannabis laws, Ad Age reports. The message, “Here, Cannabis is Legal. Enjoy responsibly” will be on the ads when heading into legal states. When heading into states where cannabis remains prohibited, the billboards will read “Here, Cannabis is Illegal. Avoid the Bookings,” referring to arrests.

For two weeks the billboards, a combination of LED and truck, will be on the borderlines of Colorado/Wyoming, Colorado/Kansas, Illinois/Wisconsin, Michigan/Wisconsin, Nevada/Idaho, Oregon/Idaho, and Washington/Idaho.

A Monogram spokesperson told Ad Age that the borders were chosen because the two neighboring states have “the most starkly opposing regulations.”

“So the least progressive states bordering the most progressive – in order to best illustrate that a single state line can make a world of difference,” the representative said.

The campaign is tied in with the 50th anniversary of the Controlled Substances Act which outlawed cannabis federally, placing it in the Schedule I category claiming it has a “high potential for abuse” and “no currently accepted medical use.”

John Ehrlichman, a policy advisor to President Richard Nixon, admitted that cannabis was criminalized to “disrupt” the anti-war movement and the Black and “hippie” communities.

“The lasting effects of this law have reverberated through the past half-century, leading to injustices including mass incarceration for cannabis-related offenses. Progress has been made recently with states’ individual legalization efforts, but cannabis continues to be stigmatized by political agendas and the arbitrary borders that still demarcate who can benefit from it, whether that’s through entrepreneurship or the positive effects of its use.” – Monogram in a statement via Ad Age

Jay-Z, who joined cannabis company Caliva last year as a chief brand strategist, said that “cannabis culture has been marred by the effects of the [CSA] and stigmatized by political agendas.”

“While there has been progress, as we launch Monogram, we felt it was imperative that we call out the arbitrary borders that still demarcate who can benefit from cannabis, whether that’s through business or the positive effects of its use,” he said in a statement.

Jay-Z announced the launch of Monogram just last week, unveiling the brand’s website and Instagram page.

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Poll: 65% of Ukrainians Support Medical Cannabis Legalization

10/28/2020

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A poll conducted alongside Ukraine’s October 26 local elections found 65 percent support medical cannabis access for severely ill patients, Kyiv Post reports. Cannabis possession remains a criminal offence in the nation.

Despite the poll being initiated by President Volodymyr Zelensky, it has no legal ramifications. Some experts say the poll doesn’t accurately reflect public opinion as it was only conducted at 55 percent of polling stations mostly in the south. Polling company Rating Group also claimed that most of the people who participated in the poll were supporters of the president’s Servant of the People Party.

Last year, Zelensky delayed the legalization of medical cannabis, saying the country had higher priorities. Although, he told the Post that “many people want to do [cannabis] business in Ukraine.”

“But we can discuss this only when we know that we are really talking about medical marijuana,” he said at that time. Prior to his election, in an interview with Unian, Zelensky expressed support for medical cannabis “droplets.”

In a statement outlined by Barron’s, the Zelensky administration estimated “at least 2 million Ukrainians need” medical cannabis.

The question appeared on ballots as, “Do you support the legalization of medical cannabis in Ukraine to reduce pain for seriously ill patients?”

Zelensky, a former actor who played the Ukrainian president on the television show “Servant of the People” has also expressed support for other liberal policies, including legalizing prostitution and Las Vegas-style gambling.

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Study: Women Prefer Cannabis Over Hormone Therapy for Menopause Symptoms

10/27/2020

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A study presented at the annual North American Menopause Society last month found 27 percent of women had used, or are currently using, cannabis to manage symptoms of menopause – more than the number (19 percent) who had tried a more traditional hormone therapy, according to an Atlanta Journal-Constitution report.

Another 10 percent of survey respondents said they would be interested in trying cannabis to ease their menopause-related symptoms.

The Midlife Women Veterans Health Survey included 232 women with a median age of 55.95. More than half (54 percent) of the participants reported hot flashes and night sweats, 69 percent reported genitourinary symptoms, and 27 percent reported insomnia.

Carolyn Gibson, a psychologist and health services researcher at San Francisco Veterans Affairs Health Care System and lead author of the study, said the “findings suggest that cannabis use to manage menopause symptoms may be relatively common.”

“However, we do not know whether cannabis use is safe or effective for menopause symptom management or whether women are discussing these decisions with their healthcare providers – particularly in the VA, where cannabis is considered an illegal substance under federal guidelines. This information is important for healthcare providers, and more research in this area is needed.” – Gibson to the Journal-Constitution

A study published earlier this month in the Journal of the American Geriatrics Society found that 78 percent of seniors were turning to cannabis for more common medical ailments, such as pain and arthritis, sleep disturbance, anxiety, and depression. That survey found 61 percent of participants started using cannabis after age 60.

A study published February in JAMA Internal Medicine found cannabis use among adults over 65-years-old increased from 2.4 percent in 2015 to 4.2 percent in 2018, a 75 percent increase.

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European Union Will Raise THC Limits on Hemp

10/27/2020

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The European Parliament voted last week to raise industrial hemp THC limits from 0.2 percent to 0.3 percent, aligning them with most other programs including the U.S., Hemp Industry Daily reports. The parliament does not have final say in the reforms, but the votes establish the body’s stance on proposed Common Agricultural Policy reforms.

The parliament also approved an amendment to add hemp to sectors covered by European Union marketing standards which would eventually establish a criterion for grading hemp products and allow restrictions regarding the use of certain substances and marketing practices.”

In a statement, the European Industrial Hemp Association called the vote “a major achievement for the European hemp sector.” The organization said raising the THC limits “would allow new varieties to enter the market and to be bred, resulting in a better adaptation of the crops to the climatic conditions of the different EU territories.” While marketing standards for the industry “would translate into a significant increase of quality and standardization of hemp products,” the group said.

Daniel Kruse, EIHA President, noted that “For decades, hemp has been considered as a minor crop, while, for centuries, it has been a key asset for our economies.”

“The vote of the Parliament reflects a renewed approach of our society to this wonderful plant that has the potential of decarbonizing many different manufacturing sectors and provide farmers with a consistent and green source of revenues.” – Kruse in a statement

According to the report, the European Parliament shares the authority to adopt and amend legislation with the Council of the European Union and European Commission. European Parliament Press Officer Jan Jakubov told Hemp Industry Daily that talks on European Union farm policy are likely to commence next month.

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DEA Seeking Contractor Who Can Incinerate 8,000 Pounds of Cannabis Per Day

10/27/2020

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The Drug Enforcement Administration (DEA) Phoenix Division is seeking an Arizona-based contractor capable of incinerating up to 1,000 pounds of cannabis and other federally prohibited substances per hour, for up to eight hours per day, Marijuana Moment reports. The potential contract was revealed in a DEA posting earlier this month.

According to those documents, a contract winner would be expected to burn cannabis and other drugs confiscated by law enforcement and would need access to an incinerator “with the capability of destroying marijuana to a point where there are no detectable levels … of byproduct from the destruction process.”

According to the work description, the incinerator must be capable of incinerating up to 1,000 pounds of material and operating up to 8 hours per day. Additionally, DEA says the contractor would be responsible for burning cardboard boxes, plastic, and many other types of packaging used to transport and sometimes conceal illegal substances.

An armed DEA agent would also be present during all scheduled burns, employees of the potential contract winner would require drug testing, and the DEA would require security camera footage of the entire process. The contractor would also be held to secrecy regarding the activities: “All information obtained shall be used only for performing this contract and shall not be divulged nor made known in any manner except as necessary to perform this contract,” the agency writes.

The agency clarified that the announcement was not a job listing, noting that “this is not a request for proposals and does not obligate the Government to award a contract.” Rather, the agency “is conducting market research, and is encouraging all businesses, including small businesses, to respond to this notice.”

The contract would begin January 1, 2021, and would expire in 2026.

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West Virginia Cannabis Regulators Called Out for “All White and Male Led” License Approvals

10/27/2020

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In a letter to West Virginia’s top cannabis regulator, the Democratic Women’s Caucus of the House of Delegates said they are concerned that forthcoming processor and dispensary licensees will follow the same trend as the grower permits – “all white and male led businesses.”

The letter to Jason Frame, director of the Department of Health and Human Services Office of Medical Cannabis, notes that none of the owners of the 10 businesses approved to cultivate cannabis for the program are female, minority, or BIPOC.

The signatories call for more “transparency on who is making these decisions and if diversity in ownership is part of the conversation.”

“We believe that it is vital as this burgeoning industry takes off in West Virginia to ensure that women, minorities and people of color also see the impact of these economic opportunities. We, as a state, should also be doing all we can to promote and support West Virginia owned businesses. We are not sure that the selection of these 10 applicants shows that either of these priorities were taken into account.” – Democratic Women’s Caucus of the West Virginia House of Delegates’ letter to Jason Frame, Oct. 22, 2020

The permits were issued earlier this month and, at that time, Frame said the Scoring Review Team used by the state to make license recommendations were not required to give preference to businesses headquartered in the state. Frame indicated that just 4 of the 10 approved firms are “majority-owned” by West Virginians.

Frame said the scoring team considered operational and security plans, plans to prevent product diversion, and the background and education of applicants.

Of the 32 businesses denied medical cannabis cultivation permits, 13 had principal offices in the state with residents as managers and directors, and five included a mix of West Virginians and out-of-state interests.

The women’s caucus is chaired by Del. Cindy Lavender-Bowe, and includes Del. Sammi Brown, Del. Amanda Estep-Burton, Del. Barbara Fleischauer, Del. Linda Longstreth, Del. Margaret Staggers, Del. Danielle Walker, and Del. Lisa Zukoff.

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Nebraska Medical Cannabis Advocates Launch Initiative Signature Drive for 2022

10/27/2020

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Nebraskans for Medical Marijuana (NMM) has launched a new medical cannabis ballot initiative after the Nebraska Supreme Court rejected the group’s 2020 initiative in September. Having been rejected over claims that the initiative covered more than one issue, the new initiative is only one sentence: “Persons in the State of Nebraska shall have the right to cannabis in all its forms for medical purposes.”

Taking inspiration from the legal casino gambling initiative passed in Nebraska, the group plans on following up their effort with statutory initiatives to build out a “safe and secure” medical cannabis system in the state.

State Senator Anna Wishart, Co-Chair of Nebraskans for Medical Marijuana, said in a press release:

“Families with loved ones suffering from conditions like epilepsy, PTSD, Parkinson’s, and cancer have fought for years to make medical cannabis safely accessible in our state as it is in 33 other states. This year over 190,000 Nebraskans successfully petitioned our government during a pandemic for that right, and despite receiving qualification from the Secretary of State, our initiative was removed from the ballot by a 5-2 vote from Nebraska’s Supreme Court. We will not give up and intend to bring this fight to the legislature in January with a bill that I will introduce and to the ballot in 2022.” — Sen. Anna Wishart, in press release

Despite an internal analysis showing their initiative had an equal number of registered Republicans, Democrats and independents, people from all age groups and signees from all 93 of Nebraska’s counties, NMM’s 2020 initiative was struck down in September after a challenge by Lancaster County Sherriff Terry Wagner. Wagner later said he was asked by ex-Nebraska Republican Party chair attorney Mark Fahleson if his name could be used for the legal challenge; the sheriff said he did not know who paid for the effort.

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Jay-Z Launches Cannabis Brand ‘Monogram’

10/26/2020

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Hip-hop superstar Shawn “Jay-Z” Carter announced on Friday his cannabis line Monogram with the debut of its website and Instagram. The line is a partnership with California-based cannabis company Caliva, with whom Carter has served as chief brand strategist since July 2019.

“Monogram seeks to redefine what cannabis means to consumers today. In an effort to provide a more tailored customer experience, the brand will also launch through a best in class e-commerce platform dedicated exclusively to its singular product line.” — Company statement, in a press release

As part of his role with Caliva, Carter advocates for social justice issues surrounding legalization and assists the firm with creative decisions, including outreach efforts and strategy, the company said at the time. Carter said the company’s “expertise and ethos” made them the best partners for the endeavor.

Jay-Z is the latest rapper to enter the cannabis space. Calvin “Snoop Dogg” Brodus launched his own brand – Leafs by Snoop – in 2015. A Green Horizons analysis in June found the brand to be the most recognizable cannabis brand, but the report found no brands were recognized by more than 23 percent of consumers.

Last year, Tauheed “2 Chains” Epps launched The Gas Cannabis Co. with Green Street Agency and Mazel Management Group. Wiz Khalifa, Freddie Gibbs, and Juicy J have also developed their own strains, while B-Real of Cypress Hill opened a California dispensary, called Dr. Greenthumb’s in 2018.

Jay-Z also has investments in liquor and real estate. In 2019, he was the first hip-hop artist to reach billionaire status.

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South Dakota Could Legalize Adult-Use and Medical Cannabis This Year

10/26/2020

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Nearly three-fourths (74 percent) of South Dakota voters said they intend to vote in favor of medical cannabis legalization during the General Election, according to a Mason-Dixon Polling & Strategy survey outlined by Aberdeen News.

The poll also found that 51 percent of respondents would support the constitutional amendment to legalize cannabis for adults, which will also appear on next month’s ballot. The poll found 44 percent opposed to the adult-use reforms with 5 percent undecided. The measure would impose a 15 percent tax on recreational-use product sales.

Drey Samuelson, political director for South Dakotans for Better Marijuana Laws, indicated that, generally, issues that poll above 50 percent are usually successful. However, the poll had a 4 percent margin of error which could impact election day results.

“We knew this was going to be close, so this isn’t exactly a surprise, but I feel cautiously optimistic that we’ll win.” – Samuelson to Aberdeen News.

The poll found 73 percent of Democrats support the amendment, along with 58 percent of independents and third-party registrants. Just 34 percent of Republicans polled supported the reforms.

David Owen, president of the South Dakota Chamber of Commerce and Industry who is supporting the opposition group No Way on A said he feels good that there is a large polling difference between the support for medical and recreational proposals.

“One of our primary goals is to get voters to understand that you don’t have to vote for both of those to get medical marijuana, and this seems to indicate that that message is getting through to the voters,” he said in the report.

The poll was conducted in partnership between Argus Leader Media and KELO TV. It included more than 600 likely voters from across the state via telephone from October 19 to 21.

South Dakota joins Arizona, Mississippi, Montana, and New Jersey with ballot questions to legalize either medical or recreational cannabis use.

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USDA Approves New Mexico Hemp Plan

10/26/2020

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The U.S. Department of Agriculture has approved New Mexico’s hemp plan which will take effect for growers licensed after October 31. The state’s Economic Development Department anticipates at least 400 hemp-related jobs from Local Economic Development Act funding.

Gov. Michelle Lujan Grisham (D) said the industry “can be an economic game-changer” for the state’s agricultural communities.

Jerry Walker, CEO and president of Independent Community Bankers Association of New Mexico said the USDA approval “is good news” for both hemp cultivators and the community banks that serve them.

“The diligent efforts of the [New Mexico Department of Agriculture] will pay dividends for years to come as the industry grows and matures. New Mexico’s community banks have been pleased to support this effort and the economic development that will benefit many areas of the state.” – Walker in a statement

Officials note that the state’s rules for the 2019 and 2020 growing season already closely aligned with the 2018 Farm Bill – which legalized hemp throughout the U.S. – but the USDA-approved plan provides more clarity for operators.

New Mexico Agriculture Secretary Jeff Witte said the USDA-approved plans “provide uniformity among states, as everyone is held to the same standards.”

This month, the USDA also approved Michigan’s hemp plan, bringing the total approved by federal regulators to 30, along with Puerto Rico and the U.S. Virgin Islands. The USDA website now lists 10 plans under review, four states as operating under USDA rules, and three continuing under 2014 pilot programs.

Alaska is listed as “drafting a plan” for approval, while Colorado’s is “pending resubmission,” and Idaho lawmakers still have not approved legislation to legalize the crop in the state.

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Shawn Kemp Opening Seattle’s First Black-Owned Dispensary

10/23/2020

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Update: Shawn Kemp’s Cannabis has since walked back its claims of being Seattle’s first Black-owned cannabis dispensary after it was revealed that Kemp owns just a 5% stake in the company. We will leave this story up for the sake of transparency. Click to learn more.

Former National Basketball Association (NBA) star Shawn Kemp is opening Seattle, Washington’s first Black-owned cannabis dispensary on October 30. Kemp, drafted by the Seattle Supersonics in the first round of the 1989 draft, played for the team until 1997 and was a six-time NBA All-Star and three-time All-NBA selection.

The near 4,000-square-foot dispensary, Shawn Kemp’s Cannabis, is located near the Climate Pledge Arena and the Space Needle. He said he hopes his company “will be an inspiration for people to get involved with the legal cannabis industry, especially people of color.”

“My name is on this company and I have worked hard to bring Shawn Kemp’s Cannabis to fruition. I want to provide nothing short of the best selection, customer experience and prices in Seattle. I have incredible partners in Matt Schoenlein and Ramsey Hamide to make sure we deliver on that promise to our customers, who are our top priority.” – Kemp in a statement

Schoenlein and Hamide are the co-founders of Main Street Marijuana, whose three shops have eclipsed $150 million in sales since the company’s founding in 2014.

Kemp resides in Seattle and is also part-owner of Amber’s Kitchen, a restaurant in the Belltown district of the city. He previously owned a sports bar called Oskar’s Kitchen which closed in 2015.

Kemp was arrested in Harris County, Texas in 2006 for possessing less than 2 ounces of cannabis, according to an ESPN report. In 2005, he was arrested for felony cannabis possession over 40 grams, cocaine possession, and possessing a firearm. He has remained clear of legal issues since.

Kemp will be joined by former teammate and NBA Hall of Famer Gary Payton for the shop’s grand opening.

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Montana Supreme Court Rejects Lawsuit to Block Legalization Initiative

10/23/2020

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The Montana Supreme Court has rejected a challenge by Wrong for Montana against the ballot initiative to legalize adult-use cannabis sales in the state, MTPR reports. The anti-legalization group argued that the question violates the state constitution because it appropriates funds which is not allowed by Montana initiatives under state law.

The legalization proposal – Initiative 190 – would establish a 20 percent tax on non-medical cannabis sales, directing the money to the state’s general fund and other programs.

J.D. “Pepper” Petersen, spokesperson for the pro-legalization group New Approach Montana, told the Missoulian that language in the initiative outlining where the taxes would be directed are a “suggestion” and that lawmakers will have the final say in how they are appropriated if the reforms are approved.

The court ruled that the lawsuit failed to show the necessary urgency to be heard by the state’s highest court – rather than on the merits of the argument – and suggested plaintiffs take the case to district court, the report says.

Steve Zabawa, director of SAFEMontana, one of the groups comprising Wrong for Montana, indicated the group filed the case in district court on Thursday, a day after the Supreme Court’s rejection.

Dave Lewis, policy advisor for New Approach Montana, described the lawsuit as an “old tactic… to try to confuse voters.”

The legalization push in the state includes the tax-and-regulate proposal along with a complimentary proposal – Constitutional Initiative 118 – which would amend the state constitution to set the minimum age for cannabis consumption at 21-years-old, according to the Missoulian.

According to the MTPR report, as of Wednesday, nearly 290,000 Montanans had already cast their general election ballots.

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West Virginia Chooses Metrc as Traceability Vendor

10/23/2020

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West Virginia has chosen Metrc to be its traceability vendor, putting the state one step closer to opening its long-awaited medical cannabis system. Already used in fifteen states and D.C., West Virginia chose Metrc to help ensure no illicit products are sold in the legal medical cannabis market and to prevent diversion of legal medical cannabis onto the illicit market, according to a Metrc press release.

“This is an important step to make certain medical cannabis is available only to West Virginians with serious medical conditions and to prevent diversion of products in West Virginia. While the COVID-19 pandemic has put many industries across the country on hold, we’re proud to say that it has not stopped West Virginia from meeting its deadlines and laying the groundwork for a safe, regulated medical cannabis market.” — Jason Frame, Director of the West Virginia Office of Medical Cannabis, in a press release

West Virginia passed medical cannabis in 2017 but has yet to serve any patients due to banking concerns and licensing delays.

When the system is finally up and running, registered patients can expect to have access to the following, according to the West Virginia Office of Medical Cannabis:

Pills,
Oils,
Topical forms including gels, creams, or ointments,
Forms medically appropriate for administration by vaporization or nebulization,
Dry leaf or plant forms,
Tinctures,
Liquids,
Transdermal patches.

The West Virginia medical cannabis roll out made other news this week when it was revealed that many of the states license cannabis cultivators were out-of-state firms. The Office of Medical Cannabis expects sales to begin in the Spring of 2021, four years after the original bill was signed.

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Purdue Pleads Guilty to Criminal Opioid Practices

10/22/2020

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Purdue Pharma has pleaded guilty to illegally pushing its infamous OxyContin product and faces a potential $8.3 billion in federal penalties, the New York Times reports. Members of the wealthy Sackler family, which owns Purdue Pharma, also agreed to pay $225 million in civil penalties. Prosecutors with the Department of Justice, however, said that further criminal charges against Purdue executives and the Sacklers themselves were not yet off the table.

OxyContin — which was first released on the market in the mid-1990s — is widely considered an early driving factor of the ongoing opioid crisis that has killed more than 450,000 Americans. Purdue has been accused of pushing the addictive opioid too aggressively and with illegal marketing tactics that included financial kickbacks to doctors who overprescribed the drug.

Steve Miller, chairman of the board for Purdue, said, “Purdue deeply regrets and accepts responsibility for the misconduct detailed by the Department of Justice in the agreed statement of facts.”

The Sackler family issued a statement, however, that they “acted ethically and lawfully,” and that, “The board relied on repeated and consistent assurances from Purdue’s management team that the company was meeting all legal requirements.” The Sacklers — who are worth an estimated $13 billion, largely due to OxyContin sales — are also controversially seeking to have the family dropped from the litigation process as part of the Purdue settlement conditions.

The federal settlement is only the latest development in a large and crowded effort to hold Purdue accountable, which includes litigation from states, tribes, counties, and cities from around the US who claim the company’s aggressive marketing fueled the opioid crisis and resulted in massive costs related to health care, law enforcement, and unemployment. According to the report, however, the company is unlikely to pay anything close to the $8.3 billion settlement because it sought bankruptcy protection in light of the many lawsuits it faced.

Critics also suggested that the federal settlement was rushed to create a win for President Trump ahead of the upcoming election — Trump’s promise to address the opioid crisis was a big focus of his 2016 campaign.

“The D.O.J. failed. Justice in this case requires exposing the truth and holding the perpetrators accountable, not rushing a settlement to beat an election. I am not done with Purdue and the Sacklers, and I will never sell out the families who have been calling for justice for so long.” — Maura Healey, the Massachusetts Attorney General, via the NY Times

A final settlement for the individuals, states, tribes, counties, and cities who are also seeking compensation for the crisis could total more than $10 billion and is expected early next year.

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IRS Can Audit Cannabis Companies Under New Appeals Court Ruling

10/22/2020

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The U.S. 10th Circuit Court of Appeals has ruled that the Internal Revenue Service (IRS) has the authority to obtain financial records from Colorado cannabis companies, Colorado Politics reports.

In her opinion, U.S. District Judge Mary Beck Briscoe said the arguments brought by the plaintiffs challenging the IRS’s “ability to investigate and impose tax consequences” are “familiar” to the courts.

“The dispensaries have lost every time,” she said, adding that “the same result is warranted here.”

The Green Solution, a Denver-based firm that had been audited by the IRS for tax years 2013 and 2014, was a plaintiff in the case, along with Medicinal Oasis, LLC, Medicinal Wellness Center. The Green Solution lost a previous case in 2017 to prevent the audit.

Medicinal Oasis and Medicinal Wellness Center were under IRS audit for tax years 2014 through 2016. The firms had asked for immunity from federal drug prosecution before providing details about their businesses to the IRS, which was rejected. The businesses claimed the IRS was using the veil of the audit to uncover non-tax-related illegal dealings – which is prohibited under federal case law.

The government said that the IRS had “nothing to uncover” as the businesses openly – and legally in the state they operate – “sell marijuana to the public.”

“Medicinal Wellness Center promotes itself as ‘a full service marijuana superstore’ [and] Medicinal Oasis claims to have the ‘largest selection of cannabis in the world!’ If the Federal Government someday elected to pursue prosecution of petitioners under the Controlled Substances Act, a visit to their websites, stores, or superstores (as the case may be) would almost certainly provide an ample basis to begin an investigation.” – IRS attorneys in a legal brief, Speidell et al. vs USA

The IRS said The Green Solution and its pass-through businesses did not substantiate their tax information to the government’s satisfaction. The agency requested – and will now obtain – product tracking details from the Marijuana Enforcement Division and Marijuana Enforcement Tracking Reporting and Compliance (METRC), the seed-to-sale tracking system used in the state.

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More Cannabis Companies Targeted By Class-Action Suits

10/22/2020

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A growing number of cannabis businesses are being sued for violating the Federal Telephone Consumer Protection Act (TPCA) according to an investigation by Marijuana Business Daily. The report found at least 12 class-action lawsuits from around the country that alleged cannabis businesses spammed customers with deals and sales, starting in May 2018.

“These cases are often low-hanging fruit for litigious attorneys,” said Michael Sampson, a Pittsburg-based attorney, in the report. “Businesses should triple-check their marketing approaches.” Sampson also said such settlements can sometimes reach six figures and could bankrupt a fledgling cannabis business.

California-based attorney Mark Roth also warned cannabis companies to be careful.

“It’s the new ambulance chasing. If you don’t agree to pay a would-be plaintiff’s demand — which could be substantial — on the grounds that you had their consent to send them the text message at issue, they can still sue you anyway and you would be forced to defend the matter, which will cost more than the initial demand amount.“ — Roth, in an interview with MJBizDaily

Roth said that to avoid a potential lawsuit, it’s important to get written consent before businesses send any marketing materials to customers.

“Consent, consent, consent. Kind of like location, location, location,” he said. “That’s the holy grail, if you will, of protecting yourself from liability. If you have consumer consent … you’re fine. You’re bulletproof.”

The cannabis delivery service Eaze solutions was one of the first cannabis companies sued for “unsolicited” text messages in 2018, according to the report. A San Diego resident sued for $2000 per unsolicited text, but the case was later dismissed and sent to private arbitration. Some of the other cases uncovered by the investigation ranged from cultivation supply companies to dispensaries/retail stores in Colorado, California, and Washington.

A report in April by the global law firm Goodwin found that class-action suits against cannabis companies rose 116% from the years 2018-2019.

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USDA Approves Michigan Hemp Plan

10/22/2020

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The U.S. Department of Agriculture (USDA) has approved Michigan’s industrial hemp plan, which will go into effect on December 1. The state had been operating under a 2019 pilot program that licensed 631 cultivators and 517 processor-handlers this year.

Under the plan, growers will no longer be able to collect their own samples for analysis at Michigan Department of Agriculture and Rural Development (MDARD) laboratories. Instead, growers must contact the agency to schedule an appointment for agency staff to collect the samples. The hemp must be harvested within 15 days of the test results. The plan also includes specific methods for destroying crops that are determined to be non-compliant.

The rules require cultivators to provide a “legal description” of the property the hemp is grown on and provide that information to the USDA Farm Services Agency. Under the current rules, growers already had to provide an address, GPS coordinates, acreage and maps.

The pilot program requires all applicants to submit a criminal drug history, and the new rules require growers with any felony drug convictions outside of Michigan to submit a Federal Bureau of Investigation background check.

In a press release, Republican state Senator Dan Lauwers, who sponsored the Industrial Hemp Growers Act, called the state’s pilot program “a great success” and that “Michigan farmers will benefit greatly from being able to grow hemp under the 2018 Farm Bill and Michigan’s USDA approved Hemp Growers Program.”

The approval brings the total of USDA-approved state hemp plans to 29, along with approved plans for Puerto Rico and the U.S. Virgin Islands. According to the USDA website, 11 submitted plans remain under review, four states will operate under USDA rules, and three are continuing under their 2014 pilot programs.

Alaska is the only state listed as “drafting a plan” for USDA review, Colorado’s plan is “pending resubmission,” while Idaho has not submitted any hemp plan for the agency as it still has pending legislation to legalize the crop.

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Cannabliss Employees Become First in District to Unionize

10/22/2020

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Workers at Cannabliss last week became the first in the District to unionize, voting unanimously to ratify a collective bargaining agreement with United Food and Commercial Workers International (UFCW) Local 400.

Cannabliss is the only 100 percent Black-owned and operated dispensary in Washington, D.C. The five-year pact covers 13 staff.

Norbert Pickett, owner of DC Holistic Wellness, home of the Cannabliss dispensary, said in a statement that the union contract offers “employees greater pay, paid time off, and paid holidays, as well as retirement plans, additional accredited training and health care insurance.”

Additionally, the contract guarantees pay increases every six months in addition to an annual cost of living wage adjustment, paid time off for vacations, personal days, bereavement, and to vote, protection from unjust discipline or termination, and grievance procedures to resolve disputes with management. Healthcare benefits are provided through UFCW National Health and Welfare Fund.

The contract agreement with Cannabliss is part of a growing trend of cannabis industry workers voting to unionize. UFCW says it represents more than 10,000 industry employees nationwide.

Mark Federici, UFCW Local 400 president, said that in the “emerging” cannabis industry, “it is critical that we establish the highest possible job standard, with living wages and comprehensive benefits.”

“By taking this historic step, these workers have set a meaningful precedent for the cannabis industry in the District,” he said in a statement.

UCFW Local 400 represents 35,000 members working in the grocery, retail, health care, food processing, service and other industries in Maryland, Virginia, Washington, D.C., West Virginia, Ohio, Kentucky, and Tennessee.

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Trump Team Issues Cease-and-Desist to Stop Cannabis Advocates from Quoting Him

10/21/2020

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The group behind the medical cannabis ballot initiative in Mississippi has received a cease-and-desist letter from President Donald Trump’s re-election campaign claiming the activists deceptively used his image, name, or likeness in support for Initiative 65, WLBT reports.

In the letter, Michael S. Glassner, the chief strategist for the Trump campaign, said I65 mailers included “misleading communications,” adding that the president “has never expressed support” for the initiative. The mailers, sent by Mississippians for Compassionate Care, urge voters to “Join President Trump” and includes quotes from the president from 2015 and 2019 supporting medical cannabis and state decisions to legalize its use.

Mississippians for Compassionate Care Communications Director Jamie Grantham said the mailers are only sharing “the truth” about Trump’s supportive comments regarding medical cannabis reforms.

“The politicians and bureaucrats behind Mississippi Horizon clearly orchestrated this letter from the Trump campaign. It’s just the latest example of the lengths to which they will go to prevent any form of medical marijuana in Mississippi. President Trump himself has said he supports medical marijuana and is letting the states decide. Initiative 65 is the only plan on the ballot that will create an actual medical marijuana program in Mississippi.” – Grantham to WLBT

Mississippians will vote next month on two competing medical cannabis legalization measures – one created by activists and another put on the ballot by lawmakers. The activist-led proposal, a constitutional amendment, would create a more comprehensive program allowing 20 “debilitating conditions” to qualify for the program.

I65A would require lawmakers to enact a program that would only grant access for medical cannabis to terminally ill patients, require pharmaceutical-grade cannabis products, and leave tax rates, possession limits, and other details to the legislature.

A September poll from WLBT found 81 percent of likely voters support medical cannabis legalization in the state.

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Study: More Seniors Using Cannabis to Treat Common Ailments

10/21/2020

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A recent study published in the Journal of the American Geriatrics Society found that 61 percent of participants – all 65-and-older – started using cannabis after age 60 with 53 percent of the 568 surveyed saying they used cannabis on a daily or weekly basis.

The majority – 78 percent – said they used cannabis exclusively for medical purposes. Pain and arthritis were the most common conditions respondents were using cannabis to treat (73 percent), followed by sleep disturbance (29 percent), anxiety (24 percent), and depression (17 percent). About half of those surveyed obtain their cannabis in dispensaries, with lotions (35 percent), tinctures (35 percent), and smoking (30 percent) being the most common administration forms.

Nearly all (94 percent) of respondents said their family knows about their cannabis use, with about half saying their friends knew, but just 41 percent said their healthcare provider knew.

Kevin Yang, co-first author and third-year medical student at UC San Diego, indicated that the survey suggests more older users are willing to tell their physician about their cannabis use, “which reflects that cannabis use is no longer as stigmatized as it was previously.”

Dr. Alison Moore, senior author and chief of the Division of Geriatrics in the Department of Medicine at UC San Diego School of Medicine, said the study’s findings “demonstrate the need for the clinical workforce to become aware of cannabis use by seniors and to gain awareness of both the benefits and risks of cannabis use in their patient population.”

“Given the prevalence of use, it may be important to incorporate evidence-backed information about cannabis use into medical school and use screening questions about cannabis as a regular part of clinic visits.” – Moore in a statement

The authors conclude that “cannabis use by older adults is likely to increase due to medical need, favorable legalization, and attitudes.”

Patients surveyed in the study were seen at the Medicine for Seniors Clinic at UC San Diego Health over a period of 10 weeks.

A recent study by Israel’s Haifa University School of Public Health suggests that senior citizens who use medical cannabis to treat chronic pain show no signs of cognitive decline.

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Massachusetts Approves Expanded Cannabis Delivery Licensing

10/21/2020

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The Massachusetts Cannabis Control Commission on Tuesday approved regulations for expanded cannabis home delivery, the Boston Globe reports. The agency will allow “warehouse” delivery licenses – which will allow companies to buy from the wholesaler, resell online, and deliver to the customer – beginning next year.

Despite the objection of brick-and-mortar dispensaries, officials said the expansion would cut into the unregulated delivery market.

Social-equity applicants will have exclusive access to all delivery licenses for the first three years, which begins when the first delivery business is licensed. The state previously approved regulations for “courier” delivery permits which allow drivers to pick up orders from a dispensary and deliver them to a customer for a fee. However, the state has yet to issue any final licenses to the 37 companies that have received courier certification.

Commission chairman Steve Hoffman called the approval “a necessary, imperative step to create equity in this marketplace . . . and minimize the illicit market.”

David Torrisi, president of the Commonwealth Dispensary Association, told the Globe that his organization was “very disappointed” by the decision, adding that the group may consider legal action. Trade groups in Los Angeles, California recently sued the city over its plan to offer delivery licenses exclusively to social equity applicants until 2025.

“The public, municipalities, and legislators haven’t had enough time to digest this proposal, and I don’t think the commission has done enough analysis to determine the impact on the supply chain and the marketplace.” – Torrisi to the Globe

The commission also approved a ban on third-party cannabis delivery platforms from having a financial interest in more than one delivery licensee in an effort to prevent the monopolization of delivery services. They also banned the “ice cream truck” model, which prevents delivery drivers from having pre-loaded vehicles anticipating orders.

The “warehouse” rules include security provisions requiring two drivers in every delivery vehicle and preventing deliveries to towns that have banned adult-use cannabis businesses.

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