Massachusetts U.S. Attorney Won’t Rule Out Federal Charges Against Canna-Businesses

1/25/2018

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Massachusetts U.S. Attorney Andrew Lelling, who was appointed by President Donald Trump and assumed office in December, told reporters yesterday that while opioid crimes are his top drug enforcement priority, he could not rule out bringing cases against canna-business operators and employees, the State House News Service reports. The comments come less than a month after Lelling released a memo saying he could not “provide assurances that certain categories of participants in the state-level marijuana trade will be immune from federal prosecution.”

Moreover, Lelling said that while members of the state’s Cannabis Control Commission have sought to meet with the prosecutor, the Justice Department “won’t allow” him to meet with the agency responsible for drafting the rules for the voter-approved adult-use cannabis industry.

“This office will pursue federal marijuana crimes as part of its overall approach to reducing violent crime, stemming the tide of the drug crisis, and dismantling criminal gangs, and in particular the threat posed by bulk trafficking of marijuana, which has had a devastating impact on local communities.” – Lelling, during a press conference

Lelling, however, noted that he doesn’t believe Attorney General Jeff Sessions wants to micromanage state prosecutors, but that his office should pursue “ambitious cases.”

Earlier this month, 19 attorney generals from 17 states, Washington, D.C., and Guam – including Massachusetts’ Maura Healey – sent a letter to members of Congress urging them to advance legislation that would allow cannabis operators to access financial services.

Adult-use sales in Massachusetts are expected to begin in July.     

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Canadian MMJ Producers Aurora and CanniMed Come to Terms in $1.1B Deal

1/25/2018

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In the most valuable cannabis industry deal to date, Canadian medical cannabis producers Aurora Cannabis Inc and CanniMed Therapeutics have entered into a support agreement that will create the most valuable cannabis company in the world. The deal, which comes months after Aurora set in motion a hostile takeover bid of CanniMed and led to the target adopting a shareholder rights plan – or poison pill – to thwart the sale, is worth C$1.1 billion ($852 million).

Under the deal, CanniMed shareholders may receive 3.40 Aurora shares or a combination of cash and shares. The share offers, at $43.00, represent a 181 percent premium over the closing price of CanniMed shares on Nov. 14, 2017.

“We are very pleased to have come to terms with CanniMed on this powerful strategic combination that will establish a best-in-class cannabis company with operations across Canada and around the world. Market recognition of Aurora`s continued performance and strategy execution since we first announced our intention to acquire CanniMed allows us to share that benefit directly with CanniMed shareholders by increasing the offer price, as well as by offering a cash component.” – Terry Booth, Aurora CEO, in a press release

The deal will force CanniMed to terminate its agreement to purchase Newstrike Resources, which will result in a $9.5 million break fee paid to Newstrike.

End

Two plastic baggies of cannabis sit on a wooden surface.

Michigan Treasury: Patients Must Pay 6% Tax on Products Bought from Caregivers

1/24/2018

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Last week Michigan’s Department of Treasury quietly released an administrative bulletin imposing a 6 percent tax on medical cannabis transfers between a licensed caregiver and their patients. The so-called use tax would not be paid by the supplier, rather it is the responsibility of the patient. The tax “for the use and consumption of this property” must be reported on Michigan Individual Income Tax Returns, the directive states.

The notice points out that while state’s General Sales Tax Act and the Use Tax Act exempt traditional medications from state taxes, the exemption does not apply to medical cannabis “because at the time of the sale they are not dispensed pursuant to a prescription.” The tax rules also exempt foods and beverages “consumed for their taste or nutritional value” but those rules do not apply to medical edibles because “they are consumed for their medicinal value rather than for their taste or nutrition.”

The document, dated Jan. 18, also lays out the tax responsibilities for licensed dispensaries under Michigan’s more comprehensive medical cannabis program rules, signed into law by Gov. Rick Snyder in 2016. Dispensaries will pay a 3 percent tax on gross retail receipts, plus a 6 percent tax on sales. The notice indicates that the Treasury will accept tax payments in cash.

In a Facebook post this morning, Michigan NORML confirmed the existence of the new tax and offered the following advice for patients in Michigan:

We have identified several problems with the new policy and we plan to fight this policy all the way through the Michigan Supreme Court if that’s what it takes to overturn this ill-conceived policy reversal. Until this gets straightened out, we are urging patients and caregivers to be extra careful during transactions. Even if this policy somehow remains in effect, it is not retroactive and will not apply to your 2017 taxes. Please be patient and we will continue to keep you informed as new developments become available. — Michigan NORML, on Facebook

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The recently elected Democratic Gov. Phil Murphy of New Jersey

New Jersey Gov. Executive Order Requires 60-Day Review of MMJ Program

1/24/2018

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New Jersey Gov. Phil Murphy has signed an executive order requiring the Department of Health and Board of Medical Examiners to complete a review of the state’s medical marijuana program and submit any recommended changes for the program within 60 days. The goal of the review is to eliminate access barriers for patients who are not currently permitted under the limited scope of the regime, originally approved in 2010 by former governor and prohibitionist Chris Christie.

“Many aspects of New Jersey’s medical marijuana program are written in statute, but our law is eight years old. Since it took effect, significant medical research has been conducted. Our goal is to modernize the program in New Jersey, bring it up to current standards, and put patients first.” – Murphy, in a press release

The move also requires regulators to review the rules demanding medical professional to “publicly register” as certified medical cannabis prescribers which, Murphy says, has led many medical professionals to choose not to participate in the program due to the potential stigma associated with it.

The order states that “medical decisions must be based on science and health, not ideology or social policy.”

“We need to treat our residents with compassion. We cannot turn a deaf ear to our veterans, the families of children facing terminal illness, or to any of the other countless New Jerseyans who only wish to be treated like people, and not criminals. And, doctors deserve the ability to provide their patients with access to medical marijuana free of stigmatization.” – Murphy, in the release

The release states that Murphy “remains committed” to working with the Legislature on “comprehensive” cannabis reform. Murphy had included tax-and-regulate in his campaign platform. Earlier this month, Sen. Nicholas Scutari introduced legislation to implement adult-use reforms.

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Virginia Legislature Considering MMJ, Cannabis Law Reforms

1/24/2018

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The Virginia Legislature is considering bills aimed at both medical and criminal justice cannabis reforms, NBC12 reports. The measure being considered by the Joint Commission on Health Care would open up the state’s limited medical cannabis program beyond the one condition – intractable epilepsy – permitted for medical cannabis access; while lawmakers have two bills to consider that would decriminalize simple possession and another that would reduce penalties for first-time cannabis offenses.

The medical cannabis reforms would allow doctors to recommend medical cannabis for patients with cancer, Crohn’s disease, multiple sclerosis, and several other conditions.

Under current Virginia law, courts are allowed to suspend driver’s licenses as part of the penalty for cannabis possession, and all three criminal reform laws would end that practice. The bill to reduce penalties for first-time offenders would also allow offenders to have low-level cannabis charges expunged from their records.

Dana Schrad, executive director of the Virginia Association of Chiefs of Police, said the organization supports reducing possession penalties but was skeptical about broad decriminalization.

“The problem with looking at decriminalization of marijuana is all the other steps that are involved, like the desire to expunge records, which creates a whole different arena of concerns for our courts, for our record keeping systems, for employers who would like to know that, particularly if you’re an employer who considers sobriety or any kind of drug use to be consequential to the job.” – Schrad, to NBC12

Virginia’s Governor Ralph Northam, inaugurated earlier this month, supports cannabis law reforms in the state. In an August letter to the state Crime Commission, Northman said the state’s cannabis sentencing laws are “costly and disproportionately harmful to communities of color.”

End

A cannabis worker wearing white rubber gloves sorts through recently trimmed cannabis buds.

Drug Policy Alliance Report Espouses Social Benefits of Legalization

1/24/2018

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According to a Drug Policy Alliance report, “From Prohibition to Progress: A Status Report on Marijuana Legalization,” arrests have plummeted in states that have legalized cannabis for adults, youth use has remained stable, rates of opioid-related harm have been reduced, highway safety has not decreased, the industry is creating jobs, and tax revenues derived from legal sales are going toward social programs.

Arrests are down. According to the report, Washington has seen the highest reduction – 98 percent – in low-level cannabis-related court filings between 2011 and 2015; in Oregon, arrests are down 96 percent from 2013 to 2016; Alaska experienced a 93 percent decrease in arrests between 2013 and 2015; in Washington D.C., possession arrests are down 98.6 percent, and cannabis-related arrests have fallen 76 percent from 2013 to 2016; and possession charges in Colorado are down 88 percent while cannabis-related court-filings are down 81 percent between 2012 and 2015.

Cannabis-derived revenues are funding schools and substance abuse programs. From 2015 to 2017, Colorado distributed $230 million to the state Department of Education; Oregon has allocated $34 million to its state school fund since legalization; Alaska officials expect to spend $12 million annually from cannabis sales to fund substance abuse programs; while Nevada expects about $56 million over the next two years in state school funding from cannabis sales.

The report estimates that the legal cannabis industry could create 165,000 to 230,000 full and part-time jobs in legal markets. In Colorado, 18,005 jobs were created in 2015 alone, the report says.

Nine states plus Washington D.C. have, so far, legalized cannabis for adult use. Michigan voters will likely decide whether to legalize recreational cannabis in November. Adult-use legalization legislation has been introduced in New Jersey, and New York Gov. Andrew Cuomo has called for a legislative study on potential adult-use reforms.

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Nevada Cannabis Taxes in November are Second Highest Since Program’s Launch

1/23/2018

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Tax revenues from Nevada’s cannabis industry are continuing to exceed expectations as the state raised more than $5.5 million in November from the 15 percent wholesale taxes on medical and recreational products, and the 10 percent excise tax on adult-use sales, the Las Vegas Sun reports. The governor’s office had projected the industry would bring in an average of $5 million a month from July 2017 to July 2019.

The November figures are down slightly from October’s $5.8 million. In July, the first month of recreational cannabis sales in the state, industry-derived taxes reached $3.6 million, followed by $4.7 million in August. So far, the state has raised $24.6 million. November’s revenues from cannabis excise taxes, about $2.1 million, represents the highest monthly total in the state since legalization.

Adult use sales in Nevada surpassed Washington, Oregon, and Colorado in their respective first months of operation.

Under the law, the wholesale tax revenue is first used to fund state and municipal regulation for the cannabis industry and the remainder is deposited into the Distributive School Account. Excise tax revenues are deposited into the state’s Rainy Day Fund.

State Sen. Tick Segerblom, who strongly supported the voter-approved reforms, has suggested that the revenues could exceed $10 million per month by next year.

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Voting booths set up temporarily in a school gymnasium.

Poll: Nearly 57% of Michigan Voters Support Legalizing Cannabis for Adults

1/23/2018

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A new Local 4-Detroit News poll has found that 56.6 percent of Michigan voters support legalizing cannabis for adult use, with 36.7 percent opposed and 6.7 percent undecided.

Support was split across party lines, with 71.5 percent of “strong” Democrats supporting the measure, along with 67 percent of those who “lean” Democrat, and 51.1 percent of Independents. Among “strong” Republicans, 43.5 percent supported the reforms, along with 44.7 percent who “lean” Republican.

Respondents indicating they had smoked cannabis at some point in their life were also split – 47.5 percent indicating they had used cannabis at some point, compared to 48.8 percent who claimed they had never tried it. Among those that have tried cannabis, the legalization measure was supported 72.7 percent to 22.8 percent; and for those that had never used cannabis, the majority was opposed – 51.5 percent to 40.6 percent.

Last November, the Coalition to Regulate Marijuana Like Alcohol submitted more than 365,000 signatures to state officials for their bid to put the legalization question to the voters. According to a Jan. 18 Facebook post, the organization indicated that the validation process of the petition has been delayed due to the Elections Bureau giving “extra scrutiny” to another ballot petition. The advocates expect the bureau to take up their petition “sometime in February.”

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A row of French flags sticking out of a balcony in Paris. France.

French Government Report Recommends Fines for Cannabis Charges to Free Up Police

1/23/2018

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A French government report suggests the nation’s cannabis laws should be reformed in an effort to free up police, calling for fines instead of bringing cases to court, according to a France24 outline of the report, which is due Wednesday. The report recommends introducing a fixed fine of between 150 and 200 euros, allowing police to levy the citation and not get caught up in the bureaucracy of low-level cannabis offenses.

“The fixed fine of 150-200 euros that I propose would enable police officers in the field to stop the legal procedure there and then with the person who has been caught. The advantage of this is that the punishment is immediate and systematic.” MP Robin Reda, co-author of the report, to Le Parisien, translated by France24

During an appearance on French radio, Finance Minister Bruno LeMaire pointed out that France has the highest cannabis consumption rates in Europe – 40.9 percent – but also has the harshest punishments.

“This is my personal conviction: cannabis must not be legalized. On the other hand, we must take a good hard look at where we have gone wrong…we have the harshest laws in Europe, yet the highest consumption rates.” – LeMaire

According to the French government report, in 2015 there were about 64,000 drug-related convictions – 40,000 for illegal drug use – yet, just 3,098 resulted in a prison sentence. Supporters of the reforms argue that with so few people going to jail following an arrest, police might as well just issue a fine and move on.

Following last year’s election of liberal centrist President Emmanuel Macron, French officials announced that convictions of cannabis possession would no longer result in the possibility of imprisonment. However, government representatives insisted at the time that the plant was not being decriminalized.

 

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Empty judge's chair inside of a U.S. court room.

Pennsylvania U.S. Attorneys Have No Plans to Crackdown on State’s MMJ Program

1/23/2018

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Pennsylvania’s U.S. Attorneys have declared that they will protect the state’s nascent medical cannabis program from federal interference following Attorney General Jeff Sessions’ revocation of the Cole Memo protections earlier this month, according to a KDKA report.

The revocation effectively allows U.S. attorneys to decide whether or not to prosecute medical cannabis producers under federal law – which classifies cannabis as a Schedule I substance.

“It’s my job to uphold the law here in Pennsylvania; and on a bipartisan basis, the legislature passed and the governor signed a medicinal marijuana law that is very popular.” – State Attorney General Josh Shapiro, to KDKA

“My office has no intention of disrupting Pennsylvania’s medical marijuana program or related financial transactions.” – U.S. Attorney David Freed, to KDKA

Although U.S. Attorney Scott Brady was less clear, telling KDKA that his office would “continue to deploy all prosecutorial tools at our disposal to protect the citizens of western Pennsylvania from those individuals and criminal organizations which traffic in all illegal controlled substances, including marijuana,” he admitted he has no plans to use those tools against state-approved medical cannabis operators.

“Take a look at my record. I have protected the interests of the Commonwealth of Pennsylvania from federal overreach. We have sued the federal government. We have defended the rules of our Commonwealth multiple times, and I haven’t lost yet.” – Brady, to KDKA

In October, regulators gave the green light to Creso Yeltrah to begin producing medical cannabis for the program, which is expected to commence early this year.

End

The Vermont Capitol Building in Montpelier, Vermont — VT is the first state to legalize cannabis via the legislature.

Vermont Gov. Signs Cannabis Legalization Bill into Law

1/22/2018

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Vermont Governor Phil Scott (R) has signed the state’s cannabis legalization bill into law, making Vermont the ninth state to legalize adult-use cannabis and the first to do so without a ballot initiative.

Vermont’s legalization plan will allow adults 21 and older to grow and possess cannabis, but stops short of a full “tax and regulate” system — the commercial sale of any cannabis products is still illegal, as is consumption in public spaces. Adults will be allowed up to possess up to an ounce of cannabis and will be allowed to have two mature and four immature plants at home.

The law takes effect on July 1. 

This is the second legalization bill to successfully pass through both of Vermont’s legislative bodies, but the first effort was vetoed by Gov. Scott, citing public safety concerns, last May.

“After more than 15 years of hard work by MPP and our allies in the state, adults in Vermont no longer need to fear being fined or criminalized for low-level marijuana possession and cultivation. This is a great step forward for the state and the whole region. Responsible adults will soon have the freedom to enjoy a safer option legally, and law enforcement will be free to concentrate on serious crimes with actual victims.” — Matt Simon, New England political director for the Marijuana Policy Project, in a statement.

A survey by the Marijuana Policy Project recently found that 57 percent of Vermonters support cannabis legalization, while a Gallup poll from last November found that 64 percent of Americans — including a GOP majority — would support such reforms.

“The majority of Vermonters, like the majority of the American public, desire to live in a community where responsible adults who choose to consume cannabis are no longer criminalized or stigmatized. Governor Scott should be recognized for helping to provide Vermonters with a path forward at a time when many elected officials elsewhere are clinging to the failed policies of the past.” — NORML Deputy Director Paul Armentano in a statement.

Vermont will join the ranks of Alaska, Washington, Oregon, California, Nevada, Colorado, Massachusetts, Maine, and Washington D.C. in ending the prohibition of cannabis.

Governor’s statement

In a statement submitted to the General Assembly after signing the bill, Gov. Scott said:

Today, with mixed emotions, I have signed H. 511.

As I said when I vetoed S. 22 in May, I personally believe that what adults do behind closed doors and on private property is their choice, so long as it does not negatively impact the health and safety of others, especially children. In this context, it is very important to understand what H. 511 does and does not do.

While this legislation eliminates penalties for adult (age 21 and up) possession of no more than one ounce, and cultivation of no more than two mature plants on their private property, marijuana remains a controlled substance in Vermont and its sale is prohibited. Also, consumption of marijuana in public places is prohibited. Consumption of marijuana by operators and passengers in a motor vehicle is prohibited. And schools, employers, municipalities and landlords are also empowered to adopt policies and ordinances further restricting the cultivation and use.

The governor also suggested that before he will even “begin to consider … implementing a commercial ‘tax and regulate’ system for an adult marijuana market,” he will need to see “comprehensive and convincing plans” to address education issues and strategies for prevention and highway safety — otherwise, activists and lawmakers can expect him to veto any legislation that seeks a regulated cannabis marketplace.

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A top-down view of a young cannabis or industrial hemp plant.

Missouri Legislative Committees to Consider Hemp Bills

1/22/2018

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The Missouri Senate Agriculture, Food Production and Outdoor Resources Committee is set to consider an industrial hemp pilot program bill today, which would allow the state to issue licenses for industrial hemp cultivation and allow the cultivators to market their products, according to a report from Missourinet. A similar measure was approved by the House last year but died in the Senate.

The measure, introduced by state Sen Brian Munzlinger, would require applicants to undergo a fingerprint criminal background check and bar anyone with a federal or state controlled substance charge within the last five years from participating in the program.

State Rep. Paul Curtman, the author of the failed 2017 legislation, has also reintroduced that bill in the House. It has been sent to the chamber’s Agriculture Policy Committee – which last year passed it 5-1. The House approved the 2017 version 126-26. The Agriculture Policy Committee is expected to take up the measure tomorrow.

In August, Muzlinger told Missourinet that the state was “missing the boat by not being engaged” in hemp production.

Currently, 34 states allow some form of industrial hemp production, including five of Missouri’s border states; Nebraska, Arkansas, Illinois, Kentucky, and Tennessee.

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The Boston city skyline taken from a boat in the nearby harbor.

Marijuana Policy Project Drafting Massachusetts Cannabis ‘Sanctuary State’ Legislation

1/22/2018

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The Marijuana Policy Project in Massachusetts is drafting legislation which would prohibit state and municipal employees from cooperating with federal authorities in any crackdown on the legal cannabis industry, according to Boston University’s Daily Free Press.

According to Jim Borghesani, the Massachusetts spokesman for the MPP, “The Refusal of Complicity Act” would ensure the state maintains solidarity in curbing the legal cannabis industry in the state.

“So if there’s a scenario – it might be that the federal government decides they are going to charge a legal operator with a crime – no local police agency would be able to participate in that operation in any way whatsoever.” – Borghesani, to the Daily Free Press

MPP Massachusetts Political Director Will Luzier indicated that the legislation may include a section preventing the state from engaging in civil enforcement – which allows law enforcement to seize and sell land used for cannabis cultivation and commerce even if the owner has not been convicted of any crime.

The measure, a move to counteract any federal enforcement on the state’s voter-approved cannabis legalization policy, would need to be adopted by state lawmakers and introduced in the legislature. If approved, it would make Massachusetts a cannabis “sanctuary state.”

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A woman walks into a Shoppers Drug Mart pharmacy, a department store chain in Canada.

Canada’s Shoppers Drug Mart Inks Third Deal to Provide MMJ to Consumers

1/22/2018

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Canadian medical cannabis producer Tilray has entered an agreement with the nation’s largest provider of pharmacy products and services, Shoppers Drug Mart, to sell its products to consumers, according to a KamloopsBCNow report. This is the third medical cannabis producer to strike a deal with Shoppers Drug Mart – Aphria and MedReLeaf announced their own agreements in December.

“Tilray’s products are currently sold in pharmacies in seven countries around the world. Today’s announcement is another strategic milestone as we aim to build the world’s leading medical cannabis brand by increasing availability of a diverse range of pharmaceutical-grade cannabis products for patients in need.” Brendan Kennedy, Tilray CEO, to KamloopsBCNow

According to the report, all three deals rely on Health Canada’s approval of Shoppers’ medical cannabis producer application. A spokesperson for Loblaw Companies Ltd., the parent company of Shoppers Drug Mart, told the Canadian Press that the company could not estimate when – or if – the approval might occur.

“As the federal and provincial governments finalize their respective cannabis frameworks, we remain optimistic that they will allow pharmacists in stores, in communities to apply their professional care to medical cannabis patients.” Loblaw spokesman Kevin Groh, to the Canadian Press

Adult-use cannabis legalization is expected in Canada in July.

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A judge's gavel rests on top of a blue legal notebook.

West Virginia Attorneys Seek Amendment to MMJ Law Allowing them to Serve Canna-Businesses

1/22/2018

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The West Virginia Supreme Court of Appeals is seeking public comment on a proposed amendment to the Rules of Professional Conduct which would explicitly allow attorneys to work with medical cannabis businesses in the state.

The proposed new section to the rules reads:

“A lawyer may counsel or assist a client regarding conduct expressly permitted under Senate Bill 386, the West Virginia Medical Cannabis Act, authorizing the use of marijuana for medical purposes and any state rules, regulations, orders, policies and procedures implementing the aforesaid act, as amended. In these circumstances, the lawyer shall advise the client regarding related federal law.”

The change is proposed by Charles M. Johnson of law firm Frost Brown Todd, LLC. after the West Virginia Office if Disciplinary Counsel issued a warning to attorneys in the state claiming that “the use of medical marijuana by licensed West Virginia attorneys remains illegal under federal law and is thusly a violation of the Rules of Professional Conduct” and that “the representation of growers, processors, dispensaries, certifying physicians and other intending to participate in the medical marijuana program … by West Virginia licensed attorney will subject them to discipline and perhaps prosecution.”

The proposed rule change would only address the representation issue.

“The [Medical Cannabis Act] established a complex regulatory scheme, and it would be difficult for prospective participants in the medical cannabis program to implement effective programs complying with the MCA and the new regulations without the assistance of a lawyer well versed in the MCA and the rules adopted by the [Office of Medical Cannabis]. In addition, counsel for the OMC, and lobbyists and lawyers in the legislature that are engaged in prospective changes to the MCA or rules to be adopted thereunder may also be placed in ethical quandaries.” – Johnson, in the amendment proposal filing

All comments must be received by the Appeals Court by Feb. 16.

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Photo taken looking down the street at the Nebraska State Capitol Building.

Nebraska State Sen. Introduces Legislation to Put MMJ Question to Voters

1/19/2018

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Nebraska State Sen. Anna Wishart has introduced legislation that would allow voters to decide on whether to approve a constitutional amendment permitting medical cannabis access in the state, according to an Omaha World-Herald report. Wishart proposed legislation to legalize cannabis last year, however, the measure failed to gain traction in the legislature.

“Tens of thousands of Nebraskans are needlessly suffering because they don’t have access to medical cannabis, including veterans, children and the terminally ill. Nebraska leaders have failed to act and provide these Nebraskans and their doctors the freedom to make decisions for their patients, without fear.” – Wishart, to the World-Herald

According to the report, it takes 30 votes from lawmakers to get a constitutional amendment measure on state ballots. In 2016, a broad medical cannabis proposal failed to advance coming three votes short of breaking a filibuster by opponents.

Wishart’s 2017 measure would have set up a smokeless medical cannabis program, providing medical cannabis access for patients with 19 conditions, including seizures, post-traumatic stress disorder, anxiety, opioid addition and “any other illness for which medical cannabis provides relief as determined by the participating health care practitioner,” according to the bill text.

Law enforcement officials in the state have taken a hardline stance on medical cannabis, including CBD. In September, the state Attorney General’s Office and Nebraska State Patrol sent a letter to county attorneys and law enforcement advising them that CBD products are illegal.

End

Washington State Home Grow Bill Advances

1/19/2018

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Washington State’s House of Representatives Commerce and Gaming Committee has passed a bill allowing adults over 21 years old to grow six plants and possess up to 24 ounces.

HB 2559 passed the committee on Tuesday by a vote of 7–2, bringing Washington one step closer to joining the other legalized states — all of which allow their citizens to grow cannabis at home.

The legislation would limit the total number of plants per household to six and permits landlords to restrict growing on their property. The bill, sponsored by Representative Brian Blake (D) and Cary Condatta, already has a companion bill in the Senate. Although not scheduled for its next hearing in the House, the bill is expected to move forward in the legislative process in the coming weeks.

During testimony, supporters expounded the medical uses of cannabis and said allowing home grows would expand access to veterans. Detractors said that allowing home-grown cannabis will increase youth access and that they worry about the smell.

Late last year, the Washington State Liquor and Cannabis Board submitted three home grow policy recommendations. Widely rejected by cannabis supporters, two of the proposals required citizens to get a permit to grow, with one of them requiring a security and tracking system. The third proposal was to keep the status quo, in which only medical cannabis patients can grow four or six plants respectively. The proposed legislation would not implement any of the WSLCB’s recommendations and is a simple, straightforward, one-page bill.  

End

Indoor cannabis cultivation operation in Washington state.

Aurora Subsidiary Wins Italian MMJ Contract

1/19/2018

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Pedanios GmbH, a wholly-owned subsidiary of Canada’s Aurora Cannabis Inc., has won a contract to supply medical cannabis to the Italian government through the Ministry of Defense, which oversees the nation’s medical cannabis program. Under current Italian law, the Defense Ministry currently produces the medical cannabis for Italian patients, but some wholesalers can purchase products directly from the Dutch Office of Medical Cannabis.

“Aurora and Pedanios’ EU GMP certifications were crucial in being successful in our bid for the tender in this demanding jurisdiction. We are now the first private cannabis company in the world able to supply the Italian government directly, a testament to the quality of our operations and the standing of our organization. This win positions us exceptionally well to continue executing successfully on our aggressive international expansion strategy.” – Andrea Ludwig Ferrari, head of sales and market development in Italy, in a press release

This is Aurora’s latest foray into the European market. In September, Aurora shipped 50 kilograms of cannabis from Alberta to Pedanios in Germany, which distributes medical cannabis to more than 1,500 pharmacies throughout the nation. Aurora’s deal with the Italian government will see the company export medical cannabis products from Canada to Italy through Pedanios.

Aurora is publicly traded on Canada’s Toronto Stock Exchange.

End

iAnthus Acquires Florida MMJ Producer in $48M Deal

1/19/2018

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iAnthus Capital Holdings Inc., which owns and operates licensed cannabis operations in Vermont, Colorado, Massachusetts, and New Mexico, has acquired Florida medical cannabis company GrowHealthy in a deal worth $17,500,000 in cash and $30,500,000 in iAnthus common shares. The company is one of just 13 licensed medical cannabis producers in the Sunshine State.

GrowHealthy operates a 200,000-square-foot cultivation and processing facility in Lake Wales and a dispensary in Palm Beach County. Under the state’s medical cannabis law, GrowHealth is able to open up to 25 dispensaries throughout the state – which will be increased with every 100,000 new registered patients in the state. In the last six months, Florida has seen a 300 percent increase in its patient counts. Currently, patient counts in Florida are reported at 67,385; although just 45,204 have been approved for ID cards.

“As one of the largest states in the U.S. with a population of nearly 21 million people and favorable demographics, Florida and its medical cannabis market provide a tremendous opportunity for iAnthus and its shareholders. The state’s population includes a large percentage of older adults who can derive significant benefits from medical cannabis, and the Florida program has witnessed a rapid rise in its registered patient base since passage of the law.” – Randy Maslow, iAnthus president, in a press release

The deal is the second in less than six months for iAnthus. Last August, iAnthus signed a latter of intent to acquire New York producer Citiva Medical LLC. That agreement was worth $18 million in cash and stock but, according to the company’s website, has yet to close.

iAnthus is traded on the Canadian Securities Exchange. GorwHealthy delivered its first products to market in November.  

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A rainy evening in San Francisco.

Cannabis Tech Company Partners with Nonprofit to Increase Social Equity in Cannabis

1/19/2018

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Eaze is partnering with Oakland, California-based nonprofit The Hood Incubator in their efforts to bring social equity to the cannabis space. The Hood Incubator works with communities of color in the cannabis space and Eaze has promised $1 million in funding over the next three years to help bring cannabis industry opportunities to such communities.

“We need to harness our power knowing that, as a community, we have deep knowledge and expertise in this industry, oftentimes because it was the only source of income we had when our families were shut out of formal economy jobs. Our alliance with Eaze will lay the foundation for the work that needs to be done to ensure fair policies are implemented as medical and recreational cannabis ordinances are adopted from a local to national level.” – Lanese Martin, The Hood Incubator co-executive director & political director, in a press release

According to a 2017 Marijuana Business Daily report, Black people comprise less than 5 percent of canna-business owners and founders. The partnership will see The Hood Incubator and Eaze work together to identify local issues for Black and Brown communities. The Hood Incubator has hosted 20 community events in the Bay Area ranging from starting a canna-business to criminal record expungement.

“As leaders in the cannabis industry, we recognize the opportunity to forge an equal and fair industry from the beginning. We’re excited to have The Hood Incubator as our partner in identifying key local issues around social equity and working together to develop programs to advance economic opportunity and to redress the adverse effects of marijuana prohibition.” – Jim Patterson, Eaze CEO, in a statement

The Hood Incubator was founded in 2016 and has more than 2,000 members nationwide.

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Network, Educate, and Innovate with the Cannabis Industry at CannaCon Seattle, Feb. 15-17

1/18/2018

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CannaCon, one of the world’s largest B2B cannabis networking expos, is coming back to Seattle on February 15, 16, and 17. Located at the Washington State Convention Center, the CannaCon Seattle expo will feature notable speakers, educational seminars, panel discussions, and countless networking opportunities on an exhibition floor packed full with more than 400 booths and thousands of attendees.

Secure tickets today to guarantee yourself an opportunity to meet and greet with the industry’s most promising companies and see for yourself the latest technology and innovations coming out of the cannabis space!

Washington’s Governor Jay Insley has been scheduled to speak at the event — he is expected to address one of the biggest issues currently facing the Washington cannabis industry: what will happen now that Jeff Sessions has rescinded the Cole Memo protections? Mexico’s former President Vincente Fox will also deliver a keynote address on Friday, February 16 that will touch on the many social and economic benefits of ending the prohibition of cannabis.

Meanwhile, seminars occurring throughout the event promise even more educational opportunities by bringing entrepreneurs and industry pioneers together to discuss their business experience in the cannabis space.

There will be so much happening at this year’s CannaCon expo that one person cannot hope to see it all — luckily, attendees can sort through and choose from the many available seminars with ease, as they have been categorized into different “paths” that each represent a major part of the cannabis industry: Cultivation, Compliance, Business/Legal, Retail, Extraction, Science/Genetics, and Marketing/Branding.

With less than a month before CannaCon Seattle kicks off, you can still shave some dollars off the ticket price by purchasing in advance — readers can get also snag an additional 30% discount on tickets by using the promo code CANNACON30 during checkout.

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Maine Regulators Move to Delay Social-Use Cannabis Provisions Until 2023

1/18/2018

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The Maine Legislature’s Marijuana Legalization Implementation Committee has voted 5-1 to delay the rollout of the social-use provisions of the voter-approved recreational cannabis bill until 2023, the Portland Press Herald reports. The move comes as lawmakers look to appease those members who don’t support measure and due to concerns over being an early adopter of a social-use scheme.

“Other states have wanted to do it, but they still haven’t. We need to get (the bill) passed, then we need to find out what the problems with social clubs might be. (An extension) will give us time to know what we’re doing. I feel that it is imperative that we do the right thing, and we don’t know enough to do the right thing now. This way, we’d have the bill done, our rules made, and then if we want to go ahead with social clubs, we can.” – Sen. Joyce Maker, to the Press Herald

According to the report, when lawmakers failed to reach a two-thirds majority necessary to override Gov. Paul LePage’s veto of the implementation package – which fell just 17 votes short – it was believed the cause was hesitation about the social-use provision.

“I think we really need them – ultimately, people need a place to go – but if this is a part of moving this bill forward, I’m in agreement.” – Rep. Lydia Blume, to the Press Herald

Social-use becoming a hot topic in adult-use legalization. Massachusetts’ Cannabis Control Commission, last month, approved a social-use policy and the rules could be included in the final regulations package, expected in mid-March. Voters in Denver, Colorado approved their own social-use measure last November, which is expected to rollout in July. Last March, Colorado’s Senate passed a measure that allows municipalities to permit social-use sites, clubs, and events; however, that move has not yet been approved by the house. Regulators in Alaska are also considering allowing social-use – but members of the Alaska Marijuana Control Board are split on what would be allowed under the regime.

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Eaze Report: Californians Ordering Cannabis Every 10 Seconds; Baby Boomers Getting on Board

1/18/2018

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Cannabis technology company Eaze has released its 2017 State of Cannabis report, which found a 19 percent annual increase among California Baby Boomers ordering cannabis products, and in 2017 customers placed an order with the company every 10 seconds – a 200 percent increase over 2016 figures.

April 20 – or the 4/20 holiday – continues to be the most popular day for cannabis orders through Eaze in California, followed by the day before Thanksgiving – dubbed Green Wednesday – President’s Day Weekend, and Valentine’s Day, with Halloween and Independence Day tied for fifth.

“This year’s State of Cannabis report reveals a turning point in the industry toward mainstream acceptance. After Californians voted for adult use in November 2016, many consumers shifted their mindset and became more open to using cannabis to improve their everyday lives. Americans are becoming better educated about the wellness benefits offered by cannabis.” – Jim Patterson, Eaze CEO, in a press release

In 2016, Eaze offered just 18 different cannabis brands, but in 2017 that figure exploded 239 percent to 61. It’s product offering swelled even higher, from 101 unique products in 2016 to 427 last year, a 323 percent increase. The report indicates that for the first time among Eaze customers, ready-to-use products – such as vape pens – outsold flower; and, while the number of male customers still far exceeds the number of female customers – 65 percent to 35 percent – spending by female Eaze customers increased by 20 percent from 2016 to 2017. In 2015, women represented just 25 percent of Eaze customers.

The analytics also purport that consumers are increasingly using cannabis to stop using sleeping pills, tobacco, and anxiety medications; 95 percent of respondents who used sleeping pills indicated that using cannabis has helped reduce their pill consumption, with 45 percent saying they stopped using their sleeping pills entirely. Of the 38 percent of Eaze customers who used tobacco, 73 percent indicated cannabis has helped them reduce their tobacco consumption and 13 percent said they were able to replace tobacco entirely with cannabis. And of the 48 percent who use or have used anxiety medication, 95 percent said cannabis has helped them reduce their reliance on those meds, with 40 percent saying they replaced their medication entirely with cannabis.

Adult-use sales commenced in California on Jan. 1. Analysis by New Frontier Data and Arcview Market Research estimates that the California legal cannabis market could reach $6.5 billion by 2020.

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Twin cannabis plants in a pot on an outdoor patio.

Erie, Pennsylvania City Council Moves to Decriminalize Cannabis Possession

1/18/2018

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The Erie, Pennsylvania City Council has voted to decriminalize the possession of small amounts of cannabis, according to a YourErie report. The measure would reduce the charges for possession of fewer than 30 grams from a misdemeanor to a summary offense, carrying a penalty of $25. Under current law, cannabis possession of 30 grams or less carries a penalty of 30 days in jail and/or a $500 fine.

The new ordinance also provides a $100 fine for paraphernalia possession or using cannabis in public.

“The purpose of this is to take otherwise law-abiding citizens and not lump them in with drug dealers and gangbangers and criminals, but to give them a chance and an opportunity to rehab – so that the punishment fits the crime.” – Erie City Councilman Bob Merski, to YourErie

Merski believes that city police will respect the ordinance although cannabis remains illegal at state and local levels in Pennsylvania. Cannabis is a Schedule I Controlled Substance according to the federal government.

The ordinance needs to be approved by Mayor Joe Schember, who Merski indicated supports the reforms.

Gov. Tom Wolf, a Democrat, has previously indicated support for statewide decriminalization, citing the number of people imprisoned for possessing small amounts of cannabis. He has, so far, taken a “wait and see” approach to broad adult-use legalization.

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