House Committee to Discuss Allowing Cannabis Research

1/15/2020

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The House Energy and Commerce health subcommittee is set to hold a hearing today about the disconnect between federal and state cannabis laws and the federal barriers to cannabis research, the Hill reports.

Rep. Anna Eshoo (D-CA) called the divide between federal and state cannabis laws “a chasm” and said she wants officials from both the Food and Drug Administration and Drug Enforcement Agency to explain to the panel why the federal agencies are potentially blocking cannabis research.

“It’s very important if you’re going to be using cannabis for medicinal purposes, you need to have the data, the outcomes and all of that, so that needs to be examined.” — Eshoo, to the Hill

Only the University of Mississippi has permission to grow cannabis for the federal government and has been the sole grower of cannabis since 1968. The federal government still supplies cannabis to medical patients approved under the Investigational New Drug program; there are only two surviving members of that program.

In a letter to the panel, cannabis industry stakeholders said that the industry supports “robust federal regulatory guidance and oversight that informs the development of additional safety protocols and produces greater regulatory consistency of product marketing, safety and oversight across state and national borders.” They added that rescheduling cannabis “may provide some benefit in facilitating research” but could “complicate the federal-state relationship with respect to cannabis.”

The panel is expected to discuss the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act – a federal measure that would effectively end federal cannabis prohibition – although the bill is not assigned to the Energy and Commerce Committee. That measure passed the House Judiciary Committee last November and was moved out of the House Small Business Committee, which waived its jurisdiction.

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Colorado Bill Would Protect Employees’ Off-Duty Cannabis Use

1/15/2020

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A new bill introduced in Colorado would prevent employers from terminating employees for using cannabis when off duty, according to a KRDO report. Colorado law already prohibits employers from firing employees for “lawful off-duty activities, including the off-duty consumption of alcohol.”

The measure, introduced by Democratic Rep. Jovan Melton, would clarify that the state’s employment law applies to off-duty activities that are legal in the state, even if they are not legal federally. In 2015, the state Supreme Court ruled that Dish Network was allowed to fire an employee who tested positive for cannabis because the substance is outlawed federally. In the Dish Network case, the employee used medical cannabis to control his seizures and failed a random drug screening in 2010.

“It was just a glaring gap that we have here in the statute, especially when we’re supposed to regulate marijuana like we are with alcohol. If someone’s able to drink while they’re at home and on their free time, as long as they’re not coming into work intoxicated, then they’re not penalized with their employment.” – Melton, to the Denver Post

Loren Furman, an official with the state Chamber of Commerce, told the Post that members of the organization supported the 2015 Supreme Court Decision “and continue to do so.” Melton indicated he was “more than willing to listen to the business community” and would “tighten” the language of the bill “if necessary.”

The bill does not clarify the rights of employees who live in Colorado but work for an out-of-state business either remotely or otherwise, and federal employees in Colorado would likely be unprotected by the law, were it to pass, due to federal law.

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Arizona Cultivator Lights Up Sky With Purple Glow

1/15/2020

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Residents of Snowflake, Arizona witnessed an unexpected light show late last week, news reports and social media updates show. The “purple haze” scene resulted from UV light pollution by medical cannabis cultivator Copperstate Farms, which operates just outside of town.

The photo was captured by local resident and Copperstate employee Cara Smith at 6:30 am on Friday morning; according to Smith, the purple UV glow is “always visible” on her way to work but the spectacular scene that morning was the usual glow reflecting off of low-hanging clouds and snow particles in the air.

“The purple lights are always there but don’t usually light up the sky like this. It had snowed that morning and was still very foggy and cloudy.” — Cara Smith, via CNN

Copperstate Farms operates on a 40-acre plot of greenhouse growing space and employs about 200 people from the area. Company representatives confirmed that the glow is because of the company’s use of red and blue UV lights.

Locals chimed in on the Navajo County Facebook page, where the photo first went viral, to share their thoughts. Many said the glow was beautiful, others complained of light pollution, and still others were skeptical that the amount of glow could even be due to cannabis grow lights — “What, are they growing cannabis for the gods?” asked one user.

 

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South Dakota Gov. Outlines Hemp Legalization ‘Guardrails’ 

1/15/2020

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South Dakota Gov. Kristi Noem (R) has outlined four “guardrails” that the state’s hemp industry must have if she is to sign a bill to legalize the crop. In an Argus Leader op-ed, Noem said that any hemp legislation must include reliable enforcement guidelines, responsible regulation, safe transportation, and adequate funding.

Noem vetoed a hemp legalization bill last year and, at that time, said she was opposed to the reforms because they would legalize cannabis “by default.”

In her recent op-ed, Noem said she vetoed the bill last session because it “didn’t address concerns surrounding public safety, law enforcement, or funding” and that now with U.S. Department of Agriculture regulations, a South Dakota tribe getting the go-ahead from the federal government, and bordering states having legalized the crop, the state should move forward with the reforms.

Under Noem’s guardrails, anyone who grows hemp in the state would consent to an inspection by law enforcement and the grower would foot the bill — not only for the inspection but for the disposal of any crop that tests over the legal THC limits, as well.

Noem is also calling for a post-legalization annual statistical report about “the impact decriminalization is having on other criminal drug prosecutions.” Smokable hemp would also have to be outlawed under any hemp legalization measure in order to gain the governor’s approval.

Noem estimates that hemp decriminalization would cost the state about $3.5 million in “one-time and ongoing” costs and she opposes raising taxes to pay for those associated costs.

It’s likely that, with the governor’s provided pathway to legalization, state lawmakers will make another push this session to legalize hemp in the state. In November, voters will decide whether to legalize both medical and recreational cannabis.

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Tennessee Proposal Would Decriminalize Cannabis

1/14/2020

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A cannabis decriminalization bill has been introduced in Tennessee, WBIR reports. In addition to the statewide reforms, the legislation would allow counties to legalize cannabis for adult use.

Under the measure, introduced by Democrat State Rep. Rick Staples, counties would be permitted to hold referendum elections “to authorize the growing, processing, manufacture, delivery, and retail sale of marijuana within jurisdictional boundaries.”

The measure would broadly decriminalize possession by adults up to one-half ounce.

A September poll found that 12 percent of Tennesseans supported the continued criminalization of cannabis in the state, while 47 percent supported adult-use legalization. Another poll conducted by Middle Tennessee State University found 81 percent support both medical and recreational cannabis law reforms, according to a Chattanooga Times Free Press report.

Last week Republican State Sen. Janice Bowling introduced legislation to legalize medical cannabis in the state, WATE reports. Under the state’s current medical cannabis program, licensed physicians can recommend cannabis oil with less than 0.9 percent THC for seizure disorders but the oil can only be produced by a university as part of a clinical trial. The law has been amended twice since its 2014 passage but both times the changes have only added more restrictions to the already narrow program.

Last year lawmakers rejected three bills to expand that limited medical cannabis regime.

If the legalization measure is approved, it would be the first legislation in the nation to allow counties to legalize cannabis rather that the state at-large.

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Florida Legalization Campaign Abandons 2020 Goal

1/14/2020

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Florida activists have ended their campaign to put recreational cannabis legalization on ballot during November’s general election, the Miami Herald reports. Make it Legal Florida organizers plan on using the signed petitions – which are valid for two years – for a 2022 push.

The Division of Elections had verified 295,072 signed petitions from campaign as of Monday; just 38 percent of the total signatures needed by February 1. The organization said the petition gathering effort was hampered by a new elections law that took effect in July which required hourly pay for petition workers and set tighter deadlines for turning in signatures. The group had filed a lawsuit seeking more time to gather signatures, but the case is still tied up in court.

Coincidentally, the day Make it Legal Florida announced they would end their ballot initiative bid, Republican Sen. Jeff Brandes filed a bill that would legalize cannabis for adults. That measure would scrap the vertical integration model used in the state’s medical cannabis program and open up the market for wholesaling by cultivators, processors, and retailers.

The measure also includes low-level cannabis crime expungement and would study the impact of home-grow. Brandes told the Herald that he believes legalization “will enable law enforcement to deal with more serious crimes,” allowing them to have a “greater impact with their limited resources.”

“For me this is a liberty issue. We should give adult Floridians the freedom to make their own choices when it comes to cannabis. It’s not a matter of if, but when, Floridians will have access to adult use marijuana. This bill allows the Legislature to lead on an issue a super majority of Floridians support.” – Brandes, in an interview with Florida Politics

Brandes’ bill would allow individuals 21-and-older to possess up to 2.5 ounces of cannabis.

State economists estimate that an adult use cannabis market in Florida could be worth $2 billion, which would, at a 6 percent rate, raise $120 million in taxes for state coffers.

A separate group – Sensible Florida – ended their ballot initiative bid to legalize cannabis for adults in December.

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New Mexico Legalization Polls Offer Conflicting Results

1/14/2020

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Two New Mexico polls regarding cannabis legalization in the state found conflicting results as lawmakers plan to meet next week to discuss potential reforms, according to a KOAT report. A poll by Emerson College conducted for prohibitionist group Smart Approaches to Marijuana found 63 percent of voters oppose broad cannabis legalization in the state, while a poll commissioned by the governor-established Cannabis Legalization Working Group found 75 percent of voters support the reforms.

SAM formulated the questions for the Emerson poll, which asked what policies respondents favored rather than what policies they approve or disapprove, according to KOB 4. Pat Davis, chairman of the Cannabis Legalization Working Group, warned that SAM “has an agenda” and framed their questions in a way which “assumes that all these horrible things that people have assumed about cannabis for years come to reality.”

Davis said that the poll commissioned by the governor’s working group asked questions in ways consistent with how the questions were phrased in previous polls.

Kevin Sabet, president of SAM, defended the poll commissioned by his organization, saying “there is more nuance to marijuana policy than either full commercialization or full prohibition.”

In October, the working group released its legalization report, finding that New Mexico could see $63 million in new state and local taxes following year one, and nearly $94 million by year five – under an average tax rate of 17 percent. The group estimates first-year sales would reach $318 million and increase to $620 million by year five in a market with 468,000 consumers. The report estimates 13,000 jobs and calls for local control, expungement, and social equity.

The group also suggested a low-income medical cannabis patient subsidy program which would grow to $7 million by its fifth year

New Mexico lawmakers are expected to consider cannabis legalization legislation this session.

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Cannabis Business Insurance Policy Approved in Nevada

1/13/2020

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The American Association of Insurance Services has expanded its Cannabis Businessowners Policy into Nevada, making it the third state to approve the insurance program, along with Colorado and California, according to a Property Casualty 360 report. The program received approval just four days after being submitted to the Nevada Division of Insurance.

Patrick McManamon, founder and chief executive officer of Cannasure Insurance Services, LLC, said that the policy “is focused primarily on retail exposures.” Under the Nevada CannaBOP program, both property and liability coverage is available for cannabis dispensaries, storage facilities, distributors, processors, and manufacturers.

“Many of the policies written today use a mix of standard and proprietary forms that can provide coverage to a wide range of cannabis exposures such as manufacturing, cultivation and lessors’ risk as well as retail.” – McManamon, to Property Casualty 360

California regulators were the first to approve the AAIS Cannabis Businessowners Policy in June 2018; Colorado regulators approved the program in April 2019. The policies are standardized under the AAIS umbrella but in each state the program’s establishment takes time because cannabis isn’t legal the same way in every state, according to FC&S Expert Coverage Interpretation Managing Editor Christine Barlow. She added that if the program is made available nationwide it would be the only industry-standardized policy available and even if the policy is not used in a state, it could still be a valuable reference for insurance carriers.

AAIS indicated they expect to develop similar programs for Alaska, Washington, D.C., Illinois, Maine, Massachusetts, Michigan, Oregon, Vermont, and Washington – which have legalized cannabis for adult use, along with New Jersey and New York – two states very likely to legalize cannabis for recreational use this year.

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Cannabis Seizures Have Increased 75% at Canadian Border

1/13/2020

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According to U.S. Customs and Border Protection figures, there has been a 75 percent increase in cannabis seizures at the border between the U.S. and Canada, the CBC reports. Between November 1, 2018 and October 31, 2019 American authorities seized about 4,881 pounds of cannabis at the border, compared to 2,776 pounds over the same period in the year prior.

The number of individual seizures recorded jumped from 3,139 in the year prior to legalization in Canada to 3,917 post-legalization.

CPB spokesman Kris Grogan called the increase “an uptick” more than a massive spike. He noted that the number of U.S. enforcement actions for cannabis seizures decreased slightly after Canada’s national cannabis law reforms.

“Although the CBP recognizes an increase in marijuana seizures and incidents, seizures and incidents normally vary from year to year.” – Grogan to the CBC

Individuals who attempt to bring cannabis products or paraphernalia into the U.S. are subject to seizures, fines, or arrest, and non-citizens caught trying to bring cannabis into the U.S. are usually denied entry into the country.

Jacqueline Callin, spokeswoman for the Canada Border Services Agency, said that the agency does not allow THC or CBD products to be brought into the nation despite the legal status of both products in Canada.

“Canadian laws around travelling with cannabis remain clear and simple: Don’t take it in and don’t take it out,” she said in the report. “It remains illegal to bring cannabis and cannabis products in any form, including edibles and any oils containing THC or cannabidiol, across Canada’s national borders whether you are entering or leaving Canada.”

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Oregon Hemp Research Center Gets $2.5M in Federal Funds

1/13/2020

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Oregon State University’s Global Hemp Innovation Center is set to receive $2.5 million to help establish the center, the Corvallis Gazette-Times reports. The research center at the university was launched in June; in October, it received a $1 million donation from Seth and Eric Crawford, OSU graduates and founders of Oregon CBD.

The federal funds were earmarked as part of a larger federal spending bill. Alan Sams, dean of the College of Agricultural Sciences at OSU, said the center’s staff and faculty are “pleased” that the appropriation was approved and that it “shows the federal government’s confidence” in the work being performed by the center.

More than 40 OSU faculty representing 19 academic disciplines are engaged in hemp research, teaching, and extension services at the center and the university plans to coordinate that expertise and the various projects into the nation’s largest research center devoted to hemp.

According to the report, the funds from the Crawford brothers will be used to explore hemp genomics in an effort to better understand how hemp could be used in health and nutrition products, textiles, and construction materials.

Seth Crawford, a former OSU sociology professor, said at the time Oregon CBD’s donation was announced that “understanding genetics” is the key to unlocking the “tremendous amount of possibility” of hemp crops.

The center plans on publicly sharing its data and collaborating with other researchers and industry operators to study hemp, which was only re-legalized in the U.S. in 2018.

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New York Gov. Renews Legalization Pledge for 2020

1/10/2020

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New York Gov. Andrew Cuomo (D) pushed for cannabis legalization during his 2020 State of the State Address on Wednesday. Cuomo had included legalization in his 2021 budget last year; however, the proposal was pulled after legislative leaders said they would prefer the measure be approved by lawmakers rather than through the omnibus budget bill.

New York faces a $6 billion budget shortfall and during his speech, Cuomo indicated cannabis-derived revenues could bring in $300 million a year in tax revenues.

“For decades, communities of color were disproportionately affected by the unequal enforcement of marijuana laws. Let’s legalize adult use of marijuana.” – Cuomo, during his State of the State address, January 8, 2020

It’s unclear whether Cuomo will again try to include the reforms in broad budget legislation but during his remarks acknowledged his office would create a new Office of Cannabis Management; last month Cuomo hired Norman Birenbaum – the former top cannabis regulator in Rhode Island – to help craft legalization policies and oversee the adult-use, medical cannabis, hemp, and CBD industries.

In a press release, Cuomo’s office promised any legalization proposal would “administer social equity licensing opportunities, develop an egalitarian adult-use market structure and facilitate market entry through access to capital, technical assistance and incubation of equity entrepreneurs.”

Additionally, the governor’s office said that it planned to work with its neighboring states that have yet to legalize cannabis – Connecticut, New Jersey, and Pennsylvania – on quality and safety controls for the adult-use cannabis industry. Last year, Cuomo met with governors from those states to discuss regional cannabis policies. New York is already bordered by cannabis legalization in Vermont, Massachusetts, and Canada.

The Governor also plans on creating a Global Cannabis and Hemp Center for Science, Research and Education with the State University of New York “other expert partners.”

Last session, cannabis legalization fell apart in the 11th hour after lawmakers could not agree how cannabis funds would be distributed – the Legislature and governor’s office are both controlled by Democrats – and ultimately lawmakers settled on expanding the state’s decriminalization policies and establishing a process for expunging low-level cannabis-related charges.

Morgan Fox of the National Cannabis Industry Association told CNN that New York‘s cannabis market could be “gigantic” and would “have rippled in global policy when it comes to cannabis.”

BDS Analytics and Arcview Market Research estimate New York as a $1.6 billion cannabis market in 2024. Brightfield Group suggests that if the state were to legalize cannabis in 2021, it could be the nation’s second-largest cannabis industry at $2.2 billion in sales by 2023.

Last session, the reforms were opposed by law enforcement organizations and many downstate Democrats. The village board of Islandia, which is on Long Island, has threatened to sue the state if cannabis is legalized.

If Cuomo is successful, New York would become the 12th state to legalize cannabis for adults and the second to legalize a taxed-and-regulated industry via the Legislature.

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units of measurement

Weedmaps Removes 2,700 Unlicensed Dispensaries

1/10/2020

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Weedmaps has reportedly removed about 2,700 illegally operating cannabis dispensaries from its site since the start of the year, according to a Southern California News Group report. The company announced in August that it would no longer accept listings from unlicensed businesses after California regulators sent the firm a cease-and-desist to stop advertising illegal operators.

Beginning January 1, companies that wanted to be listed on the platform must provide a state license number or sign an agreement promising they only sell CBD products; however, some analysts suggest that system is wrought with loopholes that allow illegal operators to add “CBD” to their names and skirt the licensing requirements.

Jackie McGowan, a cannabis consultant who’s tracked Weedmaps’ listings for two years, said that some businesses are even “entering legal cannabis license numbers that they are poaching from real licensees.”

“While we believe that Weedmaps has indeed owned up to their agreement to stop listing unlicensed businesses, we also believe there are several loopholes that are still being exploited by rogue shops.” – McGowan, to the News Group

According to McGowan’s research, the number of retail cannabis ads posted on Weedmaps decreased from 5,610 on December 31 to 2,920 on January 3 – a reduction of 2,690 illicit shops, or about 48 percent of Weedmaps’ retail ads. However, the number of ads for illicit shops are more than double those for legal ones.

Weedmaps isn’t the only site listing illegal shops; BudTrader.com has hundreds of ads for unlicensed dispensaries, according to the report.

A law passed last year allows California regulators to impose a $30,000-per-day fine for each violation by a company advertising illegal cannabis companies.

Editor’s note (1/13/20): A Weedmaps representative has disputed the reported number of listings that have been removed since January 1 but would not provide a different sum as the company considers its client data to be proprietary.

According to the statement received by Ganjapreneur, the unlisting of unlicensed businesses was also not prompted by the regulators’ cease-and-desist letter.

“Since its inception, Weedmaps has served hundreds of dispensaries that have been providing patients with safe access to cannabis under Proposition 215, the Compassionate Use Act of 1996. Like most in the cannabis industry, we expected that the cities and state of California would provide a pathway for these businesses to operate compliantly after the legalization of adult-use cannabis in 2016. When cannabis businesses’ temporary exemptions expired earlier in 2019 with no path to licensing, we started mobilizing to comply with the regulations to restrict our platform to the lucky few who had been able to get a license. At Weedmaps, it’s our mission to power a transparent and inclusive global cannabis economy. Compliance is central to this mission, so it was necessary to implement this policy, but we are working hard to try to impact regulations and policies to expand license access and the state of the market.” — Travis Rexroad, Weedmaps’ Director of Public Relations, in an email

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Cresco Labs Accepting Applications for Social Equity Incubator Program

1/10/2020

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Chicago, Illinois-based Cresco Labs has announced they are accepting applications for their community business incubator program for the state’s minority-owned cannabis industry entrepreneurs, WGNTV reports. The program aims to provide technical and financial assistance to minority-owned businesses hoping to apply for craft-cultivation or infusion licenses.

The program – called SEED or Social Equity & Education Development – “is designed to ensure that all members of our society have the skills, knowledge and opportunity to work in and own businesses in this industry,” the company’s website explains. Applications for the program are online and close January 14.

The Illinois deadline for new craft-growing and infusion businesses is March 16 and new licenses are expected to be issued by July 1. The Illinois Department of Agriculture will issue a limited number of licenses for new cannabis companies, including some reserved for social equity applicants – minority applicants and those most negatively impacted by the War on Drugs.

The company first announced the program last May. Cresco Labs CEO & Co-Founder Charlie Bachtell said that, in addition to the incubator program, SEED also plans on “collaborating with universities to develop cannabis-focused curriculum” and “working with local agencies and community organizations to sponsor expungement events.”

We are also focused on providing a pathway to business ownership through our comprehensive incubator program, which we believe will assist states in achieving the diversity goals they have established for their regulated cannabis programs.” – Bachtell, in a statement

In all, Cresco hopes to provide 20,000 individuals with the opportunity to seek employment in the cannabis industry by 2022.

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California Lists THC and Cannabis Smoke as Reproductive Toxins

1/09/2020

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California’s Office of Environmental Health Hazard Assessment (OEHHA) has approved listing “cannabis smoke” and THC as reproductive toxins under Proposition 65 and, in one year, cannabis products in the state will need to label their products with a Prop 65 warning label.

Cannabis smoke has been listed as a Prop 65 carcinogen since 2009; THC is a new addition. OEHHA’s Science Advisory Board’s Developmental and Reproductive Toxicant Identification Committee – as the “state’s qualified experts” – voted in support of listing cannabis as a reproductive toxin in December based on their conclusion that cannabis smoke and THC “have been shown to cause reproductive toxicity based on the developmental endpoint,” the agency said in its January 3 policy announcement.

Cannabis products in the state already carry the Prop 65 carcinogen warning and producers will have to amend their packaging to include the reproductive warnings.

In their report backing the listing, the agency points to seven studies that link cannabis to adverse postnatal growth, 11 studies linking cannabis to higher postnatal mortality rates, 27 studies that examined association between cannabis use by mothers and low birthweight, 18 studies that failed to find a link between cannabis and gestational age, and 19 studies that found mixed results linking cannabis use to preterm birth – 13 of those studies did not report significant associations between the two.

The THC listing will see a broader range of products carry the Prop 65 warning, including edibles, topicals, and vape products.

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House Small Business Committee Advances MORE Act

1/09/2020

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The House Small Business Committee has waived its jurisdiction on the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act, making it the second Democratically-controlled committee to advance the legislation.

The action was first reported by Politico.

In November, the House Judiciary Committee voted 24-10 in bipartisan favor of the MORE Act which would end federal cannabis prohibition. The measure must still pass through another eight House committees, including the Crime, Terrorism, and Homeland Security Committee, Agriculture Committee, Education and Labor Committee, Natural Resources Committee, National Parks, Forests, and Public Lands Committee, Oversight and Reform Committee, and Ways and Means Committee.

Despite the still long path to the full floor for a vote, NORML Political Director Justin Strekal said cannabis legalization has never been closer following the committee’s action.

“With this action, the MORE Act is one step closer to becoming the first bill to end cannabis prohibition to pass the House of Representatives.” — Strekal, in a press release

Last September, the House approved the SAFE Banking Act, which would give cannabusinesses access to traditional financial services in states where cannabis is legal. That measure passed the chamber in a bipartisan 321-103 vote. It was the first piece of stand-alone cannabis legislation ever to be advanced by federal lawmakers.

Both landmark pieces of legislation face an uphill battle in the Republican-controlled Senate.

Last month, Senate Banking, Housing, and Urban Affairs Committee Chairman Mike Crapo (R) said he would not support the SAFE Banking Act in the Senate due to concerns over cannabis potency, marketing to children, the lack of research on cannabis and its effects, and money-laundering by “bad actors.” He added that he is “firmly opposed” to cannabis legalization both federally and in his home state of Idaho – which would place him in opposition to the MORE Act as well.

Senate Majority Leader Mitch McConnell, who would be responsible for bringing both the MORE and SAFE acts to the floor for a vote in the chamber, has said he has no plans to back broad cannabis legalization.

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Why Organized Labor is Fighting for Legalization

1/09/2020

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On January 1, Illinois rolled out what is set to become the second-largest recreational cannabis market in the world. And, like the world’s largest market, California, the legislation has written in broad social equity and criminal justice provisions, along with protections for organized labor. In fact, organized labor helped push Illinois’ legalization measure across the finish line during the state’s last legislative session. 

How organized labor is fighting for an equitable industry

Union involvement in the legal cannabis industry is a trend that is growing as more and more states consider adult-use legislation. The burgeoning cannabis industry is opening up tens of thousands of employment opportunities, presenting an opportunity for unions like United Food and Commercial Workers (UFCW) and the Teamsters to increase their membership. This is happening in many newly legal states through labor peace agreements. A labor peace agreement (LPA) is an arrangement between a union and an employer under which one or both sides agree to waive certain rights under federal law with regard to union organizing and related activity. Generally, under an LPA, management promises to not dissuade employees from unionizing and to afford union organizers greater access to the workplace. Unions, in turn, agree not to encourage strikes. While typically these agreements are negotiated voluntarily, some state and local governments have attempted to impose LPAs by law. And that is exactly what’s happening in the cannabis industry. 

New York became the first state to mandate that all medical cannabis facilities sign a labor peace agreement with a union to receive a license. More recently, California became the first adult-use state to create such a mandate by signing into law Assembly Bill 1291, which amends existing cannabis regulations to mandate that employers with 20 or more employees maintain a labor peace agreement as a condition of obtaining a state cannabis license. 

While the newly established Illinois market does not have such a mandate, there is a benefit to cannabis companies who negotiate LPAs. The Illinois law operates on a point system and awards five out of a possible 250 points for employers who maintain labor peace agreements, incentivizing potential licensees to sign LPAs.

Why cannabis?

As a new industry, cannabis represents an opportunity to significantly boost membership for unions. Unions also want to ensure that the rapidly expanding industry doesn’t exploit workers. According to the UFCW, currently the largest cannabis union, workers that have unionized in the industry have been able to negotiate annual raises, health insurance subsidies, and higher-than-average wages. Along with creating an equitable workforce, organized labor has also been at the front lines of ensuring equity in ownership through legislation, particularly for those disproportionately impacted by the war on drugs.

While some states are enforcing LPAs and incentivizing companies to allow workers to unionize, many cannabis companies are voluntarily encouraging unionization – an atypical stance for any business. In cannabis, though, unionization can signal legitimacy and a dedication to creating a safe and fair work environment in an industry rife with problematic labor practices.

Nearly every organization that has voluntarily unionized has issued a press release touting the company’s commitment to a strong, independent workforce, as well as social justice more broadly. Last month, when Sira Naturals became the first cannabis company in Massachusetts to unionize, the company’s founder and president issued a statement: 

“As the largest cannabis union in the country, we believe UFCW will be a strong partner in paving the way for a new generation of union agreements that reflect the importance of a strong and independent labor force in the cannabis industry.” — Michael Dundas, Founder of Sira Naturals, in a press release

Similarly, when employees for the Have a Heart dispensaries in Seattle signed the first collective bargaining agreement for cannabis workers in Washington state, the company issued the following statement: “We consistently strive to have a positive impact in the neighborhoods where we do business, and we see our partnership with [UFCW Local 21] as part of our commitment to creating a safe and empowering workplace.” 

The cannabis industry’s willingness to unionize follows a trend of the industry trying to shake the stigma of a former black market, as well as a trend of problematic labor practices, through corporate social responsibility efforts. Indeed, because legalization measures are tied to repairing the past harms of the war on drugs, the industry has a unique opportunity to be a leader in corporate social responsibility, and that includes allowing employees to organize. Whatever the impetus, the growing trend to unionize the industry will help to ensure that beyond equity in ownership, the industry is also committed to building an equitable workforce.

Editor’s note: This article is an editorial contribution from the Last Prisoner Project. Learn more at LastPrisonerProject.org.

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Washington Bill Seeks Task Force to Address Cannabis Odors

1/09/2020

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A Washington State Senator has introduced a bill to create a state task force that would look at the problem of strong smells associated with cannabis production and processing. SB 6089, proposed by Sen. Judy Warnick (R), would create a seven-member task force with representatives from various state agencies, County and City Association members, and a representative from the adult-use cannabis industry.

Led by the state Liquor and Cannabis Board, the task force would look at ways to “mitigate or mask” strong cannabis smell and the negative impact the smell may have on people working or living near cannabis producers and processors.

The task force will have until December 31, 2020 to present their findings to the legislature and governor.

Cannabis is renowned for its strong smell — these strong odors may cause allergic reactions for some people, according to a 2015 study published in the Journal Annals of Allergy, Asthma and Immunology. Symptoms are similar to other plant allergies, such as nose and eye inflammation, sneezing, coughing and asthma, researchers say. The study highlighted the need for protections for cannabis workers exposed to the strong smell and proper diagnosis of cannabis allergies by doctors; researchers also point out that people living close to large cannabis farms may be at risk due to the large amount of cannabis grown.

Cannabis odor is not just a problem in Washington; the strong smell has prompted many cities and states to add odor control requirements for new producers and processors.  Last year, racketeering laws were used to go after a cannabis farm in Colorado. Earlier this year in California, the “Santa Barbara Coalition for Responsible Cannabis Cultivation” formed to address community complaints about the “noxious smell.” Other lawsuits have been filed in Massachusetts and Oregon, complaining the strong smell reduces property values.

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South Dakota to Vote on Legalization in November

1/09/2020

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The South Dakota Secretary of State’s Office has validated the ballot initiative to legalize cannabis in the state, ensuring that citizens will vote on the reforms during November’s Presidential Election, the Argus Leader reports. The approval comes less than a month after officials approved a separate petition to legalize medical cannabis in the state.

If approved, the constitutional amendment would require the Legislature to pass laws legalizing and regulating hemp, and both recreational and medical cannabis.

South Dakota will be the first state to vote on both medical and adult-use measures during a single election. According to the report, lawmakers are already working on a bill to legalize and regulate hemp along with another bill that would put hemp legalization to voters during the election if the bill failed to pass.

Republican Gov. Kristi Noem opposes all forms of cannabis legalization – including hemp – and wrote in an Argus Leader op-ed last year that legalizing hemp legalizes cannabis “by default.” In the op-ed, Noem said that legalizing hemp “weakens drug laws” and “hurts law enforcement.”

In 2018, a ballot initiative to legalize cannabis in South Dakota failed to submit enough valid signatures to appear on ballots that year; in 2016, a notary error forced an adult-use question off of the ballot.

It’s unclear what ramifications would be if both the medical and recreational initiatives pass in November; however, it’s likely that the constitutional amendment – the recreational measure – would supersede the non-amendment medical cannabis initiative.

Citizens have until January 20 to challenge the medical cannabis measure and until February 5 to challenge the ballot measure.

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NCIA to Host Reddit AMA on Federal Cannabis Policy Reform

1/08/2020

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NCIA’s Government Relations team to discuss legislative progress in the past year and next steps for reform in 2020 and beyond in r/politics

WASHINGTON, D.C. – This afternoon, the National Cannabis Industry Association (NCIA) will host a Reddit “Ask Me Anything” (AMA) session to discuss the current state of cannabis policy reform in Congress and the path forward for sensible regulations at the federal level. The session will begin at 2 p.m. ET and will feature NCIA’s Government Relations team, consisting of Michael Correia, Michelle Rutter, and Madeline Grant.

The session can be found here and questions can be asked in advance or during the discussion.

Michael Correia is NCIA’s director of government relations, leading its lobbying efforts in Congress for more than five years. Prior to joining NCIA, Michael spent years working on Capitol Hill, including working for Rep. George Radanovich (R-CA), who retired in 2010, and the House Committee on Resources, serving three different chairpersons. Prior to that, he was director of federal affairs for the American Legislative Exchange Council (ALEC) and senior project manager for the Committee for Responsible Federal Budget.

Michelle Rutter is NCIA’s government relations manager. Prior to working for NCIA, Michelle was a research analyst at a government affairs firm in Washington, D.C., where she analyzed and tracked legislation on numerous issues. During her studies, she held a year-long internship with Virginia House of Delegates member Tony Wilt (R) where she communicated with constituents, businesses, and government officials, facilitating meaningful conversations.

Madeline Grant is also a government relations manager for NCIA. Previously, Madeline worked for two members of Congress on Capitol Hill, Rep. Scott Perry (R-PA) and Rep. Scott Tipton (R-CO). During her first year on the Hill, she gathered cosponsors and support for the Charlotte’s Web Medical Access Act of 2015. She currently manages NCIA’s federal PAC.

WHAT: Reddit “Ask Me Anything” on r/politics with National Cannabis Industry Association discussing current state of cannabis policy reform in Congress

WHEN: Wednesday, January 8 at 2 p.m. ET

WHERE: https://www.reddit.com/r/politics

WHO: Michael Correia, NCIA Government Relations Director

Michelle Rutter, NCIA Government Relations Manager

Madeline Grant, NCIA Government Relations Manager

###

The National Cannabis Industry Association (NCIA) is the largest cannabis trade association in the U.S. and the only organization broadly representing cannabis-related businesses at the national level. NCIA promotes the growth of a responsible and legitimate cannabis industry and works toward a favorable social, economic, and legal environment for that industry in the United States.

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Hemp Driver Freed After a Month in Texas Jail

1/08/2020

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A hemp delivery driver jailed on federal drug charges in Texas has been freed and his charges dismissed after laboratory testing on his 3,350-pound cargo confirmed it was hemp, the Texas Tribune reports. Aneudy Gonzalez had been jailed for nearly a month after being pulled over for driving on the shoulder by a Texas Department of Public Safety trooper; Gonzalez was arrested despite showing the officer the lab tests for his cargo.

Under Texas hemp laws, police are not allowed to interfere with interstate transport – the shipment originated in California and was headed to New York – and are not permitted to seize any product or make any arrests unless they have probable cause the substance is psychoactive cannabis. Gonzalez’s attorney, Adam Tisdell, said the lab results took away the officer’s probable cause, but the trooper arrested his client and seized his cargo.

“They legalized a plant that has a distinction that’s invisible to everyone except a machine. Aneudy got searched because they smelled marijuana. Well, they can’t smell marijuana anymore. They can smell cannabis.” — Tisdell, to the Tribune

In a statement to the Tribune, DPS said the trooper believed the substance was illegal based on his training and experience. Gonzalez had also been arrested in Arizona during the same trip; there he spent one night in jail until officials determined he was hauling hemp.

Hemp legalization has brought confusion to law enforcement agencies throughout the U.S. where THC-rich cannabis remains mostly illegal. In Texas, several counties have indicated they would stop prosecuting low-level cannabis crimes due to officers not being able to tell the difference between hemp and psychoactive cannabis and it not being worth the cost of testing to prosecute low-level possession offenses. Since hemp legalization took effect in Texas on June 10, the number of possession cases filed in the state has fallen nearly 66 percent.

Gonzalez’s lawyers said they would pursue a civil lawsuit for their client’s arrest and detention.

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Illinois Dispensaries Brace for Product Shortages

1/08/2020

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One week after legalized cannabis sales in Illinois, dispensaries are running low on products, forcing some of them to temporarily close, NBC 5 reports. The launch of the legal cannabis market in Nevada, Massachusetts, Alaska, and Washington state also had near-immediate post-legalization shortages, so the shortage in Illinois was no surprise to operators.

Jason Erkes, spokesman for Cresco Labs, indicated the company has “limited supplies left” but the company “put rations in place … when things launched” in an effort to stretch their supplies and serve as many adult-use customers as possible. He added that the state’s growers are “ramping up their production and expanding their facilities.” He expects the supply chain to stabilize by spring.

Under the state’s recreational cannabis law, medical cannabis patients get first priority at the state’s dispensaries. Herbal Center Spokesperson Courtney Greve-Hack, told NBC 5 that the dispensary stopped selling to recreational consumers over the weekend but plan to resume selling some products – such as edibles and topicals – on Friday, but the company won’t sell flower to recreational users “until they can feel confident they have enough for medical patients.”

Pharmacann’s Jeremy Unruh said that while his firm grows and sells cannabis, state law doesn’t allow companies to favor their own dispensaries.

“Over the last five years we have developed very strong wholesale relationships with the other cultivators in Illinois, and we’ve spent the last several months leveraging and working those wholesale relationships to make sure that we’re prepared for day one, week one, month one.” – Unruh, to NBC 5

In the first five days, Illinois dispensaries sold more than $10.8 million worth of cannabis products over 271,000 sales, the Chicago Tribune reports. In all, 37 dispensaries throughout the state are online and the state is currently considering more than 700 applications for 75 new dispensary licenses.

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Ohio Petition Seeks to Add ‘Browns/Bengals Fan’ As Cannabis Qualifying Condition

1/08/2020

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At least one football fan in Ohio has embraced their Democratic right to petition and is asking regulators to grant them medical cannabis access to treat their post-match misery, The Cincinnati Enquirer reports.

The Ohio State Medical Board confirmed this week it has received a petition to make being either a Cleveland Browns or Cincinnati Bengals fan into a qualifying condition for the state’s medical cannabis program.

The board is meeting on February 12 to consider 28 different petitions, others of which included requests for access to treat conditions such as anxiety, depression, and autism. The sports fan petition is quite unlikely to advance further, however, as the board requires input from medical specialists about why each proposed condition should be accepted.

Last year, Ohio regulators received 110 petitions for new cannabis qualifying conditions. Many petitions were either incomplete or made for conditions that were already allowed, however, and the board eventually narrowed down that number to just six conditions: opioid addiction, autism, general anxiety, chronic anxiety, depression, and insomnia. Then, the board consulted medical professionals about the remaining petitions’ validity before rejecting all of the conditions — this year, any petitions that mirror those conditions must be presented with “new scientific information” to be considered again by the board.

Ohio’s medical cannabis industry officially launched in January 2019; in September, the only patient advocate serving on Ohio’s Medical Marijuana Advisory Committee was forcibly removed.

The Cincinnati City Council, meanwhile, voted to decriminalize cannabis possession throughout the city last June.

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New Mexico Water Districts Strained by Cannabis Production

1/08/2020

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Two rural New Mexico water districts say medical cannabis farms in the area have put a strain on local water supplies. According to the Albuquerque Journal, the Peña Blanca Water and Sanitation District and Sile Mutual Domestic Water and Sewer Association penned a letter to state regulators and legislators expressing their concerns. The letter complains that an average home in the area uses three thousand gallons of water each month, while a medical cannabis producer can use up to twenty thousand gallons in the same period of time.

The problems are being compounded by a patchwork of local, state and federal regulations, combined with already strained water systems due to poor infrastructure and overuse. In New Mexico, domestic water cannot be used for agriculture. Farmers must find other water sources than those allocated for home use, then purchase water rights from the State Engineer. Additionally, mutual domestic well systems cannot be slated for growing cannabis because they would lose Federal improvement dollars, the Journal reports.

“The (cannabis) companies may think that the water rights were already taken care of when they purchased the property. We see the potential for these farms to bring economic growth to a rural community, so how do we support that growth while bringing water to our residents? We come from resource-poor communities, and many people have private domestic wells. We don’t have the infrastructure to move the quantity of water that (the farms) need.” — John Gurule, Peña Blanca system President, via the Journal

The affected groups suggest requiring medical cannabis producers to present “water rights” when submitting an application. Others suggest a “robust framework” passed by the legislature to regulate cannabis and water use, especially with adult-use cannabis potentially on the horizon for New Mexico. 

 

 

 

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High Times Names Former Overstock.com President as CEO

1/08/2020

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High Times Holdings CEO and President Kraig Fox is out less than a year after being hired and he’s been replaced by Stormy Simon, the former president of Overstock.com and one of the company’s independent directors.

Fox, who had previously served as a senior managing director of Guggenheim Partners and founder and CEO of Core Media, was hired in April; his resignation was effective on December 24.

Simon, who worked at Overstock.com for 15 years, hinted at a potential business shift for the long-running media company – cannabis distribution.

“The cost of customer acquisition has plagued the cannabis industry thus far, but utilizing the High Times brand’s global audience, we should be able to monetize our traffic by connecting consumers to cannabis products at an unprecedented scale. Like millions of other people, I have trusted High Times for years and I can’t wait to use my experience to help develop the next iteration of our business: delivering the best products into consumers’ hands.” – Simon, in a statement

Adam Levin, who will remain in his role as executive director following the shakeup, said during Simon’s tenure at Overstock.com she increased revenues from $20 million to over $2 billion.

“Stormy Simon, who rose through the ranks at Overstock.com during her 15-year tenure with the company, has extensive international business relations and marketing experience and is highly skilled at breaking down and rebuilding departments,” Levin said in a statement.

Simon will earn $300,000 per year in the new role; however, that base salary will be fixed at $215,000 at the onset until the company has raised an additional $10 million, after which Simon will be paid the remainder. Additionally, Simon can earn an additional $225,000 in annual performance bonuses and purchase up to 200,000 shares of common stock at $11.00 per share.

Last month in a Securities and Exchange Commission filing, the company said there was “substantial doubt” about its ability to continue operations due to “recurring operating losses, net operating cash flow deficits, and an accumulated deficit.”

In the report, Hightimes Holding had a net loss of $11.9 million on revenue of $10.7 million for the six months ending on June 30, 2019, along with $105.2 million in debts.

In late October, the cash-strapped company laid off the majority of DOPE Magazine’s Seattle, Washington editorial team, which Fox at the time called a “strategic decision.” High Times acquired DOPE last year for $11.2 million. In addition to DOPE, High Times also purchased Green Rush Daily and CULTURE magazine last year for $7 million and $4 million, respectively.

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