Looking out the passenger window of a moving car.

Massachusetts Gives Preliminary Approval to Cannabis Delivery

4/30/2019

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The Massachusetts Cannabis Control Commission (CCC) has given preliminary approval to allow cannabis delivery services, the Associated Press reports. The plan was approved 4-1 but will need final approval after officials develop regulations.

For the first two years, delivery businesses would be limited to social equity applicants – those disproportionately impacted by previous cannabis laws. The draft rules would allow delivery businesses to pick up cannabis from retailers and deliver it to residences in municipalities where commercial sales are permitted.

“Delivery is an important thing to do. I believe we’re ready. This is going to make it more accessible for consumers… and it’s a very important thing from a social equity standpoint, because of the lower barriers to entry in terms of the capital requirements.” — Cannabis Commission Chairman Steve Hoffman, via the Boston Globe

During last week’s meetings, the CCC also discussed providing application fee waivers and reducing the first annual license fee for social equity and Economic Empowerment Program applicants, eliminating the $50 patient registration fee, developing potential potency limits, adding post-traumatic stress disorder to the list of qualifying conditions for medical cannabis, adding veterans to the Social Equity Program, and increasing patient caps for caregivers, according to a press release.

The agency also discussed stronger penalties for companies that violate licensing limits. Last month, regulators launched an investigation into Sea Hunter Therapeutics and Acreage Holdings alleging that they used shell companies to thwart the state’s six-total dispensary rules.

Next month, regulators are expected to deliberate issues related to social consumption, which could be included during the commission’s Fall regulatory process.

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Washington Passes Bill Reversing Misdemeanor Cannabis Convictions

4/30/2019

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On Saturday, April 27, a bill in Washington state requiring courts to vacate misdemeanor cannabis convictions upon request passed the Senate for the second time and is now on its way to the desk of Gov. Jay Inslee (D). The action came shortly after the House passed an amended version and despite opposition from the Washington Association of Sheriffs and Police Chiefs.

The bill, SB 5605, follows the governor’s Marijuana Justice Initiative, which provides a process for pardoning misdemeanor cannabis convictions. Like the governor’s “initiative,” applicants for the vacancy must have been 21 at the time of their arrest.

By vacating a conviction, eligible Washingtonians will have all references to the conviction removed from their record, allowing them to answer “No” when asked the question “Have you ever been convicted of a crime?” on housing or job applications. The court may choose not to vacate if applicants have criminal charges pending, if fewer than three years have passed since the terms of the sentence were met, or if the applicant has been convicted of a new crime.

According to a report prepared by the Marijuana Arrest Research Project, there were 240,000 possession arrests in Washington between 1986 and 2010. The report also found communities of color were disproportionately affected by cannabis arrests. Proponents of the legislation say that, by passing this bill, Washington will join other states trying to reverse the damage done to communities of color by unjust cannabis laws.

The bill was pushed for heavily by The Cannabis Alliance, a cannabis industry trade organization of which Ganjapreneur is a supporting member. “We put our time, energy and resources behind this effort because our membership voted ‘Expunging records for cannabis convictions’ as their #2 priority for this legislative session,” said Cannabis Alliance Executive Director Lara Kaminsky. 

 

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A freshly trimmed cannabis nug lying on its side on a wooden table.

Connecticut Lawmakers Want 20% Overall Cannabis Tax Rate

4/30/2019

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Connecticut lawmakers are seeking an overall tax rate of 20 percent on adult-use cannabis products, the Hartford Courant reports. Under the plan, the proceeds would be sent to cities and communities that have been most impacted by the War on Drugs.

Lawmakers in the state are debating various cannabis legalization-related bills after they moved out of their respective committees in late March and earlier this month. House Speaker Joe Aresimowicz, a Democrat, opposed the idea of earmarking the funds – not because of where they are going but because earmarks are “really hard to live up to in a changing economy and a changing budget process.”

Aresimowicz said if the legislature doesn’t come up with a compromise on legalization before June 5 they might call a special session to come to an agreement.

The tax rate plan would keep Connecticut’s cannabis taxes on par with neighboring Massachusetts and includes a local option that would allow municipalities to add their own 3 percent sales tax.

“Naturally, we don’t want to incentivize anybody to go over the border to Massachusetts if they are going to purchase cannabis. We tried to keep our rate consistent with the overall effective rate of where Massachusetts is.” — Rep. Jason Rojas, via NBC Connecticut

Earlier this month, the Legislature’s Judiciary Committee approved cannabis charge expungement bill, a measure to ensure employers have the right to ban cannabis from the workplace, and legislation to create a driving under the influence test for cannabis. The adult-use bill was approved by the General Law Committee in late March.

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Iowa Bill Eliminating Medical Cannabis THC Caps Moves to Gov.

4/30/2019

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The Iowa Senate has approved a bill to eliminate the 3 percent THC cap on medical cannabis products, moving it on to Gov. Kim Reynolds for her signature, according to a KHQA report. In lieu of the potency cap, dispensaries would not be allowed to sell more than 25 grams of medical cannabis during a 90-day period.

While the measure does not expand the qualifying conditions list, the law does change “untreatable pain” as an approved condition to “severe and chronic pain.” According to the state Department of Public Health, 58 percent of the program’s patients qualify for untreatable pain. It also allows nurse practitioners and physicians assistants to certify medical cannabis patients for the program – as of Apr. 18, there are 2,538 registered patients and 666 physicians sighed up to certify.

The bill, which passed 40-7 on the last day of the session, removes restrictions blocking felons from the program. Notably, the bill still does not allow patients to purchase flower products but eliminating the THC cap will allow them to manufacture and sell high-potency products like tinctures.

“I give you my word: This is not a step in the direction of recreational use of marijuana. It’s a step to help people who have a lot of pain.” — Sen. Brad Zaun, R-Urbandale, during a Senate floor debate, via KHQA

Just last week, the legislature sent Reynolds, a Republican, a bill legalizing industrial hemp production in the state. Reynolds is expected to sign the hemp bill but has previously opposed expanding the medical cannabis program.

Last year, the governor’s spokesperson told the Des Moines Register that Reynolds “believes further study would be needed before expanding the program.” She also opposes broad recreational legalization. Her office has not indicated whether or not she plans on signing the expansion law.

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Missouri Sets Number of MMJ Facility Licenses

4/29/2019

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The Missouri Department of Health and Senior Services will initially license 60 medical cannabis cultivation facilities, 86 infusion manufacturing facilities, and 192 dispensaries, KHQA reports.

Dr. Randall Williams, DHSS Director said the number of canna-businesses in the state are “consistent with what is outlined in the Constitution.”

Licenses will be awarded using blind scoring which Lyndall Fraker, director of DHSS Section for Medical Marijuana Regulation, said will ensure that businesses selected for licenses will be those most capable of providing quality service to patients while adhering to the regulations we are implementing.”

The agency has previously announced draft rules for the state’s medical cannabis law, it’s seed-to-sale tracking system, qualifying patients and caregivers, dispensaries, and DHSS is accepting comments on those rules until May 15. All rules for the program must be finalized by June 4.

Licenses for facility applications will be accepted between Aug. 3-17. The deadline to complete the blind scoring process is Dec. 31.

Missouri voters approved medical cannabis in 2016.

End

Utah to License 10 Medical Cannabis Growers

4/29/2019

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Utah will license 10 cultivators to grow medical cannabis crops for the state’s medical cannabis patients, according to a KUTV report. Under the state law passed last year outdoor cultivators can grow up to 4 acres, while indoor grows are limited to 100,000 square feet.

Both the cultivation limits and the number of licenses will lead to over or undersupply, depending on who you ask.

Melissa Ure, a senior policy analyst with the state Department of Agriculture and Food, told KUTV that there would be an oversupply if all 10 cultivators were growing their max limits. Ure said the state’s 100,000 patient estimate is more than double what the department is planning.

Justin Arriola, a board member with Together for Responsible Use and Cannabis Education, believes the state’s patient counts will reach 180,000, which means that Utah’s cultivators would not be able to meet the demand. He pointed to Connecticut and New Jersey – which have similar grower caps – and said “the lesson there is…the amount of market demand is underestimated.”

Utah dispensaries are slated to open next year – many advocates are worried, however, about the state law limit of just seven retailers for the entire state.

End

Hawaii Passes Industrial Hemp Bill; Gov. Expected to Sign

4/29/2019

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Hawaii lawmakers have passed a bill to make permanent the state’s industrial hemp program, the Hawaii Tribune-Herald reports. The measure was passed on the last day available for conference committees to approve bills.

State Rep. Richard Creagan, a Democrat who was on one of the conference committees that passed the bill, called it “a victory for all the small farmers” of Hawaii. Creagan indicated Gov. David Ige would sign the legislation. A similar bill failed to pass last month.

Under the current program, the Board of Agriculture sets limits on the number of industrial hemp licenses given out by the state. Creagan said the committee removed language from the bill wherein that rule would have remained in place until the full program was established – which is expected next year.

“We don’t want to just stop giving people licenses,” Creagan said in the report. “We don’t want to look like we’re trying to keep people out.”

Currently, there are just 17 industrial hemp cultivators in the state. The newly passed bill includes language to add three full-time employees to run and oversee the new industry.

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Timeline Emerges for Completion of Washington’s Traceability System

4/29/2019

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A clearer timeline for the complete implementation of Washington state’s cannabis traceability system, Leaf Data Systems (LDS), is beginning to emerge after more than a year and a half of delays and setbacks.

Meeting for the first time since January, the Washington State Liquor and Cannabis Board (LCB) Traceability Advisory Committee rescheduled the latest update, version 1.37.5 from June 14 to July 1. The update had already been rescheduled from early November to June.

According to a Cannabis Observer report, MJ Freeway has submitted eight potential release candidates but none have passed the LCB’s ten-day regression testing process. The ninth candidate will be submitted on May 7. Leaf Data Systems 1.40 — the version that will fulfill the contract MJ Freeway signed on July 11, 2017 — is scheduled for release on September 20, 2019. At that time, MJ Freeway will manage Leaf Data Systems on a monthly subscription basis at a cost of $600,000 per year. Still more updates to fix data quality bugs are scheduled for late 2019 and beyond.

Additionally, members of the advisory committee have raised concerns about the data integrity within Leaf Data Systems over the past year. The LCB is attempting to remediate this issue with a “Data Quality Project” that will assess, analyze, and resolve problems and monitor data quality within LDS.

Project manager Claire Olson said, “We don’t really know how big the breadbox is yet,” and that the LCB is attempting to gain an assessment that is, “a little more finite than ‘everything is bad.'”

“Talking to the enforcement guys has been a real eye-opening experience for me. It is the reason I stay here late at night trying to get these things sorted out.” — Olson, via The Cannabis Observer

The process to implement a new seed to sale traceability system in Washington has been plagued with problems since 2017 when long-time vendor Bio Track THC’s contract was not renewed by the LCB.

MJ Freeway won the contract to build a new state system. After missing their first deadline of October 31, 2017, however, the company has reported delays ever since. After reports of a hack and continued issues, the LCB then brought on Gardner Consulting to help identify issues holding the project up in the spring of 2018. During this period, the LCB issued several emergency license suspensions, each related to diversion and traceability issues.

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Canadian Police Report No Increase in Stoned Driving Post-Legalization

4/26/2019

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Canadian police have reported no significant changes in the number of cannabis-related impaired driving crimes post legalization, the Canadian Press reports. However, police say it is too early to release hard data on the issue.

In Ontario, police said the bulk of charges filed under the new law was for driving a vehicle with cannabis readily available; the law requires cannabis products to be out of reach of the driver usually in the trunk.

In Manitoba, that number is just 87 in six months. Royal Canadian Mounted Police Sgt. Paul Manaigre attributed those charges to people not trying to hide their cannabis products from police in their vehicles.

“We provide a reminder to treat it like alcohol and store in the trunk instead of on the front seat.” – Manaigre, in an email to the Canadian Press.

According to the casual survey of police departments throughout the nation, only in Alberta were there a significant uptick in stoned driving charges. From Oct. 17 to Apr. 10, 58 people were cited with drug-impaired driving charges, compared to 32 during the same six-month period in 2018.

Chief Const. Mike Serr of the Abbotsford, British Columbia Police Department, who co-chairs the Canadian Association of Chiefs of Police’s drug advisory committee, said that while officers do crack down on illicit cannabis producers when they come to law enforcement’s attention, they are prioritizing investigations into deadly drugs like fentanyl and methamphetamine.

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Survey: 51% of Americans Consider Cannabis Smell a “Problem”

4/26/2019

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According to a PSB Research, Civilized, Burson Cohn & Wolfe, and BuzzFeed News survey, 51 percent of Americans believe the odor of cannabis in public is a “problem,” compared to 60 percent of Canadians.

The survey did find a supermajority of Americans – 84 percent – favored legalization for either medial or recreational purposes and 60 percent said they supported a taxed and regulated cannabis industry. Of the American respondents, 27 percent were active cannabis consumers.

In Canada, 57 percent of respondents said they “dislike” or “hate” the smell of cannabis in public, compared with 23 percent of Americans. Sixty percent of Canadians called the smell of cannabis in public “a real problem.”

Among Americans, 18 percent said they enjoyed the smell and another 18 percent said they didn’t like it – 41 percent said they didn’t notice or didn’t care.

One-third of current American consumers said that the smell of cannabis in public was a problem, but just 10 percent said it was a major one. Among American non-consumers, 27 percent called it a major problem while 29 percent said it was a minor problem; 28 percent said the smell was “not really a problem” when walking down the street, while 21 percent said it wasn’t “a problem at all.”

1,000 adults aged 21-or-older were interviewed for the survey in the U.S. – 471 consumed cannabis regularly. In Canada, 602 people were surveyed, including 371 consumers.

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Hemp Legalization Bill Passed in Iowa, Moves to Gov.

4/26/2019

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The Iowa Legislature has passed a measure legalizing industrial hemp production in the state, KHQA reports. The legislation passed the House 95-3 on Tuesday and 49-1 on Thursday. It moves next to Republican Gov. Kim Reynolds who, according to Brownfield Ag News, is expected to sign the bill.

Under the law, farmers will be permitted to grow up to 40 acres of the crop which will be monitored by the Iowa Department of Agriculture and Land Stewardship.

State Rep. Jarad Klein, himself a farmer, called the bill’s success “a win” for customers, retailers, and farmers.

“Allow the building of the infrastructure of this market now, so that when it comes time for our farmers to harvest their crops, there will be a robust demand and an outlook for industrial hemp.” – Klein in an interview with KHQA

While farming won’t begin until next year, the bill immediately allows retailers in the state to begin selling hemp-based products, according to a Radio Iowa report. Republican Rep. Jeff Shipley, who voted for the measure, expressed some frustration about the “red tape” contained in the bi-partisan legislation.

“Technically we are growing government with licenses and fees and it’s hard for me to comprehend that because my understanding of hemp is basically it is an inert plant and it’s very hard for me to wrap my mind around why we need government holding people by the hand to make sure they don’t make any mistakes here,” he told Radio Iowa.

Once the bill is signed by Reynolds, only eight states will remain without legalized hemp production following the passage of last year’s federal farm bill which removed hemp from the Controlled Substances Act. Last week the U.S. Department of Agriculture released hemp seed import guidance to clarify how farmers could access seeds for the new crop.

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Kamala Harris: Ex-Dealers Should Be “First In Line” for Cannabis Opportunities

4/25/2019

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California Sen. Kamala Harris, who is also a candidate for the 2020 Democratic presidential primaries, said on Wednesday that incarcerated cannabis dealers should be freed and deserve access to the burgeoning cannabis industry’s new economic opportunities.

Sen. Harris made the comments during an appearance at the She The People conference in Houston, Texas.

“[Many] of the people who historically were arrested for marijuana sales were young men, young men of color. Isn’t that the irony of it all? This is one of the fastest-growing money-making industries in our country and the very young men who were trying to make money doing the same thing got criminalized and now have been branded felons for life [and] are excluded from the economic opportunities that are now available because of this new industry.” — Sen. Kamala Harris (D), during her She The People appearance

“They were ahead of the curve,” she said, and they should be “first in line to get the jobs that are available.”

Sen. Harris also reiterated her stance regarding federal cannabis legalization, stating that she “strongly” believes that prohibition is a failed policy that should be abolished. “It has … contributed to the problem of mass incarceration in our country, and has led disproportionately to the criminalization of young black and brown men in this country,” she said.

The California senator also described drug prohibition broadly as a failure. “There is no question of the failure,” she said, reiterating previous arguments she has made that the Drug War has mistakenly turned what should have been a public health issue into a criminal justice issue.

Historically, however, Sen. Harris has not always been in favor of progressive cannabis reforms. She did not publicly endorse California’s successful cannabis legalization initiative, for example, and did not endorse any federal cannabis reforms until 2018.

According to Marijuana Moment, the now-senator at one point bragged that, during her tenure as California’s Attorney General, she “increased convictions of drug dealers from 56% in 2003 to 74% in 2006.”

Sen. Harris also has a somewhat troubling habit of referring to the ongoing Drug War in the past tense — as if there weren’t still millions of drug-related felony convictions (including for cannabis) carried out each year in the U.S.

End

USDA Releases Hemp Seed Import Guidance

4/25/2019

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The United States Department of Agriculture has released guidance allowing hemp seeds to be imported from outside of the U.S. as long as the seeds include documentation that the strains will produce plants below the 0.3 percent THC threshold.

Seeds must include phytosanitary certificates from government plant protection agencies that confirm their origin and that no plant pests are detected. The agency notes that, while the Drug Enforcement Agency no longer has the authority to require hemp seed permits for import purposes, the shipments would be subject to inspection at ports of entry by Customs and Border Patrol.

“The [USDA] regulates the importation of all seeds for planting to ensure safe agricultural trade. Under this authority, USDA is providing an alternative way for the safe importation of hemp seeds into the United States.” — April 18 USDA “Importation of Hemp Seeds” guidance.

The guidance is the first action by the USDA related to hemp, which was removed from the Controlled Substances Act last December as part of the 2018 farm bill. The measure requires states to submit their hemp industry plans to the USDA for review before they can be implemented. The agency is responsible for developing federal rules but those rules are not expected until later this year.

Since the bill’s passage, several states have moved on, or approved, legislation to either align their state hemp cultivation rules with those outlined in the federal legislation or legalize hemp production. Currently, just seven states still have laws in place outlawing hemp production.

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Washington State Resumes Heavy Metal Testing

4/25/2019

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The Washington State Liquor and Cannabis Board (LCB) has announced the resumption of heavy metal testing under the Department of Health (DOH) cannabis resume. The announcement comes nearly three months after the LCB passed an emergency rule suspending the heavy metal testing requirement due to a lack of state certified heavy metal testing labs.

During those three months, producers committed to producing DOH-compliant products — which must be tested for heavy metals and banned pesticides and serve as the state’s “medical cannabis” supply — could still use the DOH compliant logo. Until recently, however, producers had to include the message “Not Tested for Heavy Metals.”

Starting April 18, Medicine Creek Analytics, a Puyallup Tribe cannabis business, became the sole cannabis testing lab in the state for heavy metals.

Medical cannabis patients are especially susceptible to elevated heavy metal concentrations because of their already compromised health. The primary heavy metals tested for in the cannabis industry are lead, cadmium, arsenic and mercury. These may accumulate through grow mediums, fertilizers, pesticides, packaging materials, and may even be transferred by some cannabis clones, according to the Cannabis Industry Journal. The Journal recommends testing everything cannabis comes in contact with, citing a recent case of lead leaching from plastic vape cartridges into otherwise clean concentrates.

Washington is in the midst of updating their testing protocols, passing a bill requiring pesticide tests for all cannabis sold in the state in the 2019 session. Unlike other states like California, who require heavy metal testing for all cannabis, Washington only requires heavy metal testing for Department of Health-approved products.

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Cannabis Beverage Producers Alliance Call for Changes to Canadian Edible Rules

4/25/2019

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A coalition of Canadian cannabis and alcohol companies are pushing for changes to the nation’s proposed rules for cannabis-infused beverages, the CBC reports. The Cannabis Beverage Producers Alliance is seeking the ability to produce cannabis-based beverages in facilities that also produce alcoholic beverages.

The group argues that developing stand-alone cannabis beverage making facilities would take money away from implementing technology and recruiting talent. Paddy Finnegan, business unit manager for food and beverage at Lakeside Process Controls and an alliance member, said the additional cost of establishing separate facilities is a “significant barrier to entry.”

“Those producers that are able to enter the market, at all, are not going to be able to do so at a price point that is appetizing to the consumer.” – Finnegan, during a press conference, via Bloomberg

The draft regulations for edibles say that cannabis beverages cannot have similarities between their alcoholic counterparts and the group says that rules could prevent companies from putting canna-beverages in bottles normally used for wine, according to a Just-Drinks report. The rules also ban companies from using terms like “beer” and “wine” and existing alcohol brands would not be permitted to use any name associated with their alcohol products. Terry Donnelly, chief executive of Hill Street Beverage Company, told Bloomberg those regulations could be “very confusing for the Canadian consumer.”

Health Canada released the edible draft rules in December. Health Canada must approve the final rules by Oct. 17.

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Alabama Committee Approves Medical Cannabis Bill

4/25/2019

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Alabama’s Senate Judiciary Committee voted 6-2 on Wednesday to approve a medical cannabis bill, moving the measure to the full Senate, WSFA-12 reports. Three committee members abstained on approving what would be a state constitutional amendment.

Currently, the state does permit the University of Alabama at Birmingham to research the use of CBD products under what is known as Carly’s Law; the proposed CARE Act would extend that law until 2021.

The measure would also establish the Alabama Medical Cannabis Commission, which would set up a patient registry and issue patient identification cards and operator licenses. The bill sets patient application fees at $65 with $65 annual renewal fees but does not lay out the fees for would-be cultivators, processors, transporters, manufacturers, packagers, or dispensaries. It also does not layout taxes for the industry.

Although it would be a constitutional amendment it does not require the two-thirds vote to enact the measure; it would, however, require a supermajority to change or overturn.

The bill includes 33 qualifying conditions, including addiction, autism, chronic pain, depression, Tourette’s, and several others included in medical programs throughout the U.S.

The bill must still pass both chambers and be approved by the governor.

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Texas House Approves Hemp Bill; Moves to Senate

4/24/2019

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The Texas House has approved legislation to legalize industrial hemp production and it next moves to the Senate, the Texas Tribune reports. The vote was conducted via a voice vote and none of the members were opposed.

The broad legalization bill includes CBD, as long as the products don’t surpass the 0.3 percent THC threshold. Democratic Rep. Tracy King, the bill sponsor, called the measure “right-to-farm legislation” allowing the state’s farmers “to cultivate a drought-resistant cash crop.”

Jeff Lake, owner of Kentucky-based company Elemental Processing, told Texas lawmakers he pays $3,000 to $5,000 plus a bonus per acre of hemp, compared to $300 to $400 for an acre of corn in a good year.

Texas Agriculture Commissioner Sid Miller threw his support behind the legislation.

“Allowing the Texas Department of Agriculture to create an industrial hemp program here in Texas will give Texas farmers an exciting new opportunity to thrive — and that’s something everyone should get behind. It is all about Texas farmers and ranchers and seeing them prosper.” – Miller, to the Tribune

The measure completely removes hemp from the state’s controlled substances list. Texas is just one of seven states without some form of hemp production legalization. Several other states, including Florida, Nebraska, Iowa, Idaho, and Oklahoma have moved to reform their hemp laws following last year’s broad legalization in the federal Farm Bill.

End

West Virginia Gov. Reconsidering MMJ Industry Reform Bill

4/24/2019

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West Virginia Gov. Jim Justice is considering a bill to eliminate taxes on medical cannabis growers, processors, and dispensers, instead opting to only levy a 10 percent tax at the point-of-sale, according to a WOWK report. The proposal also allows vertical integration in the space and advocates fear the changes in the bill will delay the roll-out of the program by another year or two.

The medical cannabis legislation is one of 14 the Republican governor vetoed over so-called technical problems. The bills are forcing the legislature to convene a special session next month.

The original medical cannabis law signed by Justice in 2017 taxed both growers and processors with a 10 percent tax and another 5 percent for dispensaries. It also barred companies from owning a cultivation, processing, and dispensing company in the space – known as vertical integration. Justice vetoed a bill in March which would have allowed vertical integration but included taxes at all levels of the supply chain – meaning one vertically integrated company would pay three different taxes.

“While the Legislature has authority to classify different businesses and tax them differently, the classifications must be 1. reasonable, 2. based on pertinent and real differences, and 3. have as their object a purpose that is germane to the enabling legislation.” – Justice, in his veto message, via the Register-Herald.

Michael Haid, a medical cannabis lobbyist, told WOWK that “stand-alone dispensaries won’t have a chance” in the state without vertical integration and officials want to make sure there is enough money to self-sustain the program.

Sales were expected to begin July 1, but the state has yet to issue any licenses. The bill vetoed by Justice last month included provisions for regional distribution which would have helped move the program along. Officials hope a recently-passed law setting up a bank for the industry will help get medical cannabis businesses licensed.

End

Cannabis Crypto Startup ParagonCoin Selling Property After SEC Fine

4/24/2019

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Embattled cannabis tech company ParagonCoin is selling the building it had hoped to use as a shared office space for industry startups, according to a Coindesk report. The sale comes after the company was fined $250,000 by the Securities and Exchange Commission and forced to repay its investors last November.

In its most recent SEC filing, ParagonCoin – founded by reality television star and former Miss Iowa Jessica VerSteeg – indicated they had paid $4.02 million for the space less than a year ago. The filing suggests that Paragon is abandoning its plan to host a co-working space for which rent would be paid using the company’s cryptocurrency.

“We currently do not intend to renovate, improve, or develop other properties. We currently do not intend to make further investments in real estate or acquire any interests in real estate and do not intend to make investments in real estate mortgages,” the filing states.

The firm does plan to continue developing its blockchain, seed-to-sale, software – which, too, would require ParagonCoin crypto tokens as secure payments within the system.

In 2017, the firm had raised $12 million through its initial coin offering. Last November the SEC agreed to register the tokens as securities but contended the company should have initially registered those tokens and that Paragon did not qualify for a registration exemption.

End

Dr. Bronner’s CEO Launches Non-Profit Cannabis Company

4/23/2019

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David Bronner, CEO and president of the soap company that bears his surname, has partnered with Flow Kana to launch Brother David’s – a non-profit cannabis company that will dedicate its profits to charity. Bronner, a noted organic farming advocate, said his soap company, Dr. Bronner’s, has dedicated more than $5 million to the legalization movement since 2001.

All of Brother David’s sun-grown products will be sourced from cultivators that have received Sun + Earth certification, which is given to farms using ethical and ecological best practices.

“Brother David’s provides an alternative to the chemical and fossil-fuel intensive industrial ag model being adopted by many corporations in the cannabis industry. As society moves closer and closer toward the federal legalization of cannabis, we need to chart a new course before it’s too late. We need to promote Sun + Earth and other high bar standards – because it’s best for the Earth in this age of climate crisis, and produces the cleanest, greenest and most ethical cannabis possible.” – David Bronner, in a statement.

In 2012, Bronner was arrested for cultivating hemp in front of the White House in protest of federal laws. He was also arrested in 2009 for digging up the lawn of the Drug Enforcement Agency in Washington, D.C. to plant hemp seeds.

Flow Kana has set up a California supply chain of more than 200 independent farms. Michael Steinmetz, Flow Kana CEO, said the partnership will help fight to preserve the cannabis industry “from the ways of industrial agriculture.”

“This movement is not only about saving these environmental and community values, but making this decentralized model of agriculture the gold standard for others to follow across the cannabis industry and beyond,” he said in a release. “This fight requires everyone’s involvement and careful collaboration across many operators, distributors, retailers, and brands working in tandem to preserve, protect, and evolve our industry and world.”

Brother David products will be available May 7 at select dispensaries in San Francisco, Berkeley and will roll out in Southern California later in the month.

End

Maine Cannabis Regulators Release Adult-Use Industry Draft Rules

4/23/2019

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Officials in Maine have, finally, released their draft rules for the state’s regulated cannabis industry, more than two years after voter approval and two vetoes of regulation legislation by former Gov. Paul LePage.

The largest operators would be allowed 20,000 square feet of canopy of mature plants with outdoor operators paying licensing fees of $15,000 and indoor-outdoor cultivators paying $30,000, according to an outline of the rules from Bangor Daily News. Application fees for the smallest licensees, Tier 1, are set at $100; all other tiers are $500. Nursery’s would pay $60 under the proposed rules. Manufacturers, dispensaries, and testing laboratories would each pay $250 application fees; manufacturers and retailers would pay $2,500 in licensing fees while labs would pay $1,000.

Anyone involved in any aspect of the industry would need a state-issued identification card and undergo a background check by the Federal Bureau of Investigation. The fee for the background check and the card would cost $50 up front and then $50 annually.

The state will use Franwell Inc.’s Metrc seed-to-sale software to track the plants grown and distributed in the state.

The rules were drafted by the Office of Marijuana Policy and underwent additional review by Freedman and Koski, a Colorado-based analytics firm and BOTEC Analysis of California will assist the state with additional rule-making for the program. The cannabis office plans to send the draft rules to the legislature before its June adjournment.

Maine sales are not expected to begin until after the rules are adopted by the legislature.

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VT Hemp Proposal Increases THC Levels; Adopts CBD Grade System

4/23/2019

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Vermont’s Department of Agriculture has released draft rules for industrial hemp cultivation in the state which includes a THC threshold of 1 percent and a grade system for CBD products.

Dan Change, the co-founder of CBD laboratory Kria Botanicals, told VT Digger that the threshold of 1 percent – higher than the federal definition of 0.3 percent – means “all hemp genetics will be legal” under state law. Under the current regime, all hemp grown in the state must contain no less than three-tenths of 1 percent or it must be destroyed.

The proposed regulations’ rating scale includes:

AA, for products with CBD concentration more than 14 percent;

A, with CBD concentration between 12 and 14 percent;

B, for products with a CBD concentration 10 to 12 percent;

C, with CBD concentration between 8 to 10 percent.

Products with less than 8 percent would be considered biomass, and the concentration analysis must be confirmed by a certified lab.

The document notes there will be licensing fees but does not lay out a schedule. Currently, hemp farmers pay just $25 for a license to cultivate hemp but those fees are expected to increase dramatically for non-hobby and large-scale farms. Last month agriculture officials outlined a plan to charge between $500 and $3,000 per year for hemp licenses depending on acreage. The plan would also impose fees on processors and additional fees for indoor producers.

The agency plans to hold two or three public comment periods before deciding on adopting the rules.

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Trump Admin Will Deny Citizenship for State-Legal Cannabis Use

4/22/2019

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Immigrants who use cannabis or work in the industry can be denied citizenship even if they are in states where it is legal, according to U.S. Citizenship and Immigration Services guidance issued Apr. 19. The policy penalizes would-be citizens for having broken federal law.

“The policy guidance … clarifies that an applicant who is involved in certain marijuana-related activities may lack [good moral character] if found to have violated federal law, even if such activity has been decriminalized under applicable state laws.” – USCIS policy alert

Earlier this month, Denver Mayor Michael Hancock sent a letter to Attorney General William Barr asking him to reconsider the federal policy to deny naturalization for individuals who work in the cannabis industry. In the letter, outlined by the Washington Post, Hancock says that two immigrants – one from Lithuania and one from El Salvador – “were denied naturalization solely because of their cannabis industry employment.”

Michael Collins, director of National Affairs from the Drug Policy Alliance, told the Post that the policy “has nothing to do with cannabis” rather with the administration’s immigration policies.

“They see cannabis as a ripe opportunity for persecuting these individuals,” Collins said in the report. “The Trump administration has used the war on drugs since the beginning to go after migrant populations.”

USCIS Spokeswoman Jessica Collins told the Post the agency is “required to adjudicate cases based on federal law…which applies to all foreign nationals regardless of the state or jurisdiction in which they reside.”

Kathy Brady, a senior staff lawyer with the Immigrant Legal Resource Center, warned that even individuals “who have had a green card for 20 years” should avoid using cannabis and working “in any aspect” of the industry.

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Vermont Gov. Disputes Senate-Backed Cannabis Sales Bill

4/22/2019

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Vermont Gov. Phil Scott’s legal counsel told lawmakers that the bill to legalize adult-use sales in the state violates the state Constitution because it doesn’t allow governors the authority to determine the makeup of the panel to regulate the industry, VTDigger reports.

Under the law, passed last month by the Senate, the governor would only appoint the board’s chair, but the governor’s counsel Jaye Pershing Johnson said the state Constitution provided the governor with the power to appoint all of the members of the board.

“When the Legislature decides they will both create the laws and structure the entities in such a way so as to divest the governor of his constitutional duty, that’s where I say that there’s a separation of powers concern.” – Johnson, to VTDigger

Vermont governors do appoint all of the members of the state Board of Liquor and Lottery.

Betsyann Wrask, an attorney with the office of Legislative Council, disagrees with Johnson’s interpretation, arguing the state Constitution “does not state that an Executive Branch entity,” such as the Cannabis Control Board, “cannot be comprised of a majority of legislative appointees.”

Scott, a Republican who has vetoed legislation based on separation of powers issues in the past, indicated last week he believed he needed more control over the board if it would be an executive branch function. He also promised not to sign the regulation measure if it didn’t include roadside saliva testing, but he didn’t go so far to say he would veto it.

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