New York Gov. Wants Adult-Use Cannabis Study

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In his State of the State address, New York Gov. Andrew Cuomo called on lawmakers to approve funding for a recreational cannabis feasibility study as two of its border states – Massachusetts and Vermont – move forward with their own legalization plans, the Democrat & Chronicle reports. The governor’s announcement comes the day after a potential Republican challenger, former Erie County Executive Joel Giambra, pitched legalization as a way to address the state’s infrastructure problems.

“This is an important topic, it is a hotly debated topic — pardon the pun — and it would be nice to have some facts in the middle of the debate once in a while.” – Cuomo, during State of the State address

Robert Mujica, Cuomo’s budget director, cited Massachusetts and Vermont as the impetus for the study.

“I don’t know how long it will take We just announced it. But again, once the states around you start to regulate an activity or allow it, there is leakage, there are criminal justice impacts, there are economic impacts, and so we want to see what goes on.” – Mujica to the Democrat & Chronicle

The pressure is on the largest northeast state. New Jersey Gov. Phil Murphy, inaugurated yesterday, strongly supports legalizing cannabis for adults, and Canada plans to roll out its legalization regime in July.

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Judge Orders Illinois Officials to Add Intractable Pain to MMJ Program; Stalled While State Appeals

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Cook County, Illinois Judge Raymond Mitchell has ordered the state Department of Health to add intractable pain to the state’s medical cannabis qualifying condition list, the Chicago Tribune reports. Despite the ruling, pain patients will continue waiting to access the program as the judge has allowed the change to be stalled while the state appeals.

The suit was brought by Rolling Hills resident Ann Mednick, who suffers from osteoarthritis and has been taking opioid pain medication to deal with the pain from the condition. Illinois’ medical cannabis regime does permit patients with rheumatoid arthritis but not osteoarthritis. The Health Department Director Dr. Nirav Shah declined to add intractable pain to the program last March, despite a 10-0 January 2016 vote in favor of the move by the now-defunct Medical Cannabis Advisory Board.

Mitchell ruled that Shah’s decision was “clearly erroneous.”

“The record shows that individuals with intractable pain would benefit from the medical use of cannabis.” – Mitchell, in the decision

This isn’t the first time a court has forced the agency to add a condition to the medical cannabis qualifying condition list. In September 2016 Cook County Judge Neil Cohen ordered officials to add post-operative chronic pain to the list, and in June of that same year Cohen ordered Shah to add post-traumatic stress disorder.

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Prince Edward Island, Canada Releases New Provincial Rules for Cannabis Legalization

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Officials in Prince Edward Island, Canada have offered more details on their cannabis legalization rules, announcing that adults 19-and-older will be allowed to possess up to 30 grams in public with no restrictions on limits in private residences, the CBC reports. The Department of Justice and Public Safety also announced that Canada’s Island Garden, OrganiGram, and Canopy Growth Corporation will provide the province with cannabis products.

The government will operate four retail outlets to start and will allow online sales. The province will enact so-called open container laws, which require cannabis to be in sealed packaging while in a vehicle – and if the package is open it cannot be accessible to anyone in the vehicle. Edibles will not be permitted until July 2019.

“Our focus remains on getting rid of the illegal market, ensuring Islanders are making an informed choice, and protecting the public health and safety of Islanders.” – Minister of Finance Heath MacDonald to the CBC

Officials plan to develop drugged driving laws prior to legalization. According to the report, a summary offense will be created for driving under the influence with a minor in the vehicle. Summary offenses usually result in fines rather than incarceration.

According to the provincial timeline on legalization, P.E.I. is on track to begin legal sales when the reforms are enacted, which are expected in July.

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New York GOP Gubernatorial Candidate Supports Adult-Use Cannabis Program

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During a press conference in Buffalo, New York, Republican gubernatorial hopeful Joel Giambra pitched cannabis legalization tax revenues as a way to address the state’s infrastructure problems, WGRZ2 reports. However, the former Erie County Executive stopped short of offering a plan or an exact tax dollar amount a taxed-and-regulated cannabis industry could offer state coffers.

“I think that legalizing marijuana and using the revenues to create an infrastructure fund to deal with these problems is a much more appropriate way to solve our problems than raising new taxes. … Adult use of marijuana is going to be happening all around us. For New York state not to get serious about ending criminal activity and the black market underground economy makes no sense.” – Giambra, on potential legalization

Republican political strategist Carl Calabrese called Giambra’s plan “a bit surprising” and said that voters might not rank legalization among their top 5 issues.

“I can never remember seeing legalization of drugs or marijuana in particular in the top five. And that’s what really drives voters. They may have plus or minus on certain issues, but if it’s not their core issue, their primary issue that drives them to vote for Candidate A or Candidate B, it doesn’t matter if you make that your key issue. It’s gotta be their key issue, the voter’s key issue.” – Calabrese to WGRZ2

Other potential GOP candidates for governor of the Democratic stronghold include Assembly Minority Leader Brian Kolb and state Sen. John DeFrancisco; however, Giambra’s proposal could appeal to pro-cannabis Democrats who are fed up with Gov. Andrew Cuomo’s prohibitionist stance on the issue.

Could New York’s borders push the issue? Last week, members of the state Assembly held a hearing to debate the merits of cannabis legalization. Once Vermont and Canada’s legalization take effect, the state will be surrounded by legalization, save for Connecticut to the east (whose General Assembly is considering reforms), Pennsylvania to the south (a likely long-term holdout), and New Jersey (whose incoming Governor Phil Murphy supports cannabis legalization and a bill has already been introduced in the state to create a taxed and regulated market).

Cuomo does support broad decriminalization, but still believes in the gateway theory.

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The U.S. Capitol Building in Washington DC.

California Congresswoman Introduces Bill to Protect State-Legal Cannabis Programs

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California Rep. Barbara Lee, a Democrat, has introduced legislation to protect state-approved cannabis programs from federal interference. The measure is titled the Restraining Excessive Federal Enforcement and Regulations of Cannabis Act – or REFER.

“The federal government has no business interfering in states that have decriminalized cannabis. American voters have sent a clear message – it’s time for the government to stop wasting taxpayer money on the failed War on Drugs and take long overdue action to reform cannabis policies. That’s why I’m introducing the REFER Act, which would prohibit federal funding for efforts intended to interfere in state and local cannabis laws. It would also lift long-overdue federal restrictions on banking for cannabis industries.” Congresswoman Lee in a press release

According to the bill text, the measure would prevent federal law enforcement from detaining, prosecuting, sentencing, or initiating civil proceedings against state-licensed cannabis operators and bar the feds from penalizing financial institutions from doing business with the industry.

So far, the legislation carries four co-sponsors from states that allow recreational cannabis use: Oregon Rep. Earl Blumenauer; Alaska Rep. Don Young; Colorado Rep. Jared Polis; and Nevada Rep. Dina Titus. The bill has been sent to the House Judiciary, Financial Services, and Energy and Commerce committees.

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Women Grow Launches ‘WGTV’ on Twitch

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Women Grow, a professional network that connects, educates, and empowers female cannabis industry leaders, has soft-launched WomenGrow TV on streaming media platform Twitch and will officially launch the channel during its 2018 Women Grow Leadership Summit on Feb. 1 and 2.

The channel will feature exclusive content, including selections from the 2018 summit.

“We are excited to announce WomenGrow TV in partnership with LOOT Interactive; this channel will be dedicated to the cannabis industry, and led by women. Our channel will provide viewers an inside look to programming focused on cannabis startups, wellness, one-on-one interviews with industry leaders, Women Grow Signature Networking meetings, and more. WomenGrow TV will be the first channel fully dedicated to women and women led businesses in the cannabis industry.” – Women Grow CEO Kristina Garcia in a press release

LOOT Interactive Managing Director David Sterling said the project was a “natural fit” for Twitch – which is an Amazon subsidiary.

“We’re thrilled to help bring Women Grow to Twitch’s global audience and help empower entrepreneurs with female-oriented content about the cannabis industry that’s both relevant and entertaining.” – Sterling, in a statement

Women Grow hosts monthly networking events throughout the U.S. and Canada.

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Aphria Acquires Broken Coast in Latest Canadian MMJ Deal

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Canadian medical cannabis producer Aphria Inc. has signed a letter of intent to acquire British Columbia’s Broken Coast Cannabis Inc. in a deal worth about C$230 million. The deal, subject to customary closing adjustments, will be paid in C$10 million cash and the remainder in Aphria shares.

The deal will see Aphria become the largest Canadian Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) medical cannabis producer and is estimated to produce 110,000 kilograms (242,508.488) pounds of cannabis per year at an average cost of less than C$2.00 per gram. Broken Coast boasts a genetic library with more than 1,000 seeds that can be commercialized.

“Adding one of Canada’s most sought after premium brands represents a major triumph for Aphria and our shareholders and firmly establishes our position as a Canadian leader in premium indoor cannabis production. Broken Coast has proven that you can grow premium quality cannabis, charge a reasonable price and earn a profit all at the same time. Our two companies are closely aligned, particularly as it relates to our relentless focus on production costs and profitability.” – Vic Neufeld, Aphria CEO, in a press release

The deal gives Aphria a foothold on both Canadian coasts as the nation moves forward with broad cannabis legalization.

“Broken Coast is committed to providing a premium and affordable product to its patient base while staying true to BC’s iconic cannabis brand and culture. Joining the Aphria team will open doors to keep innovating with our unique production process and cannabis genetics. While we are joining a talented large-scale greenhouse operator, Broken Coast will retain a high level of independence and our existing management and production teams will continue to drive our corporate strategy and produce incredible cannabis products.” – Roberto Bresciani, director and co-founder of Broken Coast, in a statement

The deal is expected to close by Jan. 31.

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The night skyline of Los Angeles, California in a digital collage with a black and white picture of cannabis foliage.

Los Angeles Awards First Licenses Under Prop. 64 Rules

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The City of Los Angeles, California has granted its first licenses under the state’s new cannabis regime, according to an LA Weekly report. Regulators granted Mother Nature’s Remedy in Woodland Hills a medical cannabis permit and WHTC in Studio City an adult-use license.

David Slocum, owner of Mother Nature’s, said he chose not to apply for a recreational license because he wanted to see how the new sector shaped up; he’s operated his medical dispensary for 12 years.

“Not that I don’t want to apply for adult, but I don’t want to apply and be the first black man arrested for it. Not state and not local, but federally. There are only five black owners in the whole city. When I spoke with everybody, we all decided not to apply for a recreational right away, but to apply for our medicinal first.” – Slocum to LA Weekly

The manager of WHTC said they had applied for a city license as soon as they were able – 10 days ago.

“We got an email yesterday [Friday] morning, and then we ran to the office to complete what we needed to do, and we are licensed in the city. We’ve already submitted to the state — we’re very efficient — and I hear that the state is processing things quickly. Yesterday, we started to get prepared as much as we could so that we’re ready. We’re hoping to be recreational by Monday at the latest.” – Jackie (no last name given), to LA Weekly

Under the new city rules, the only Los Angeles dispensaries allowed licenses are those open since 2007 and who are Prop D eligible.

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Indoor cannabis grow operation under a glowing, purple-red light.

U.S. Attorney in Oregon Shares Cannabis Industry Concerns in Op-Ed

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In an op-ed in the Oregonian, U.S. Attorney for the District of Oregon Billy J. Williams said that while “national policy has changed” – referring to the rescinding of the Cole Memo protections by Attorney General Jeff Sessions – federal attorneys’ “commitment to exercising good judgment in charging decisions has not.

“We will continue to look at cases individually and assess whether charges are appropriate considering the best needs of our community.” – Williams in the Oregonian op-ed.

Williams pointed out that the state’s recreational cannabis program has a “massive marijuana overproduction problem,” noting that last year postal agents in Oregon seized 2,644 pounds of cannabis and more than $1.2 million in cash tied to illicit cannabis sales headed out of the state. Comparatively, he adds, officials in Colorado seized just 984 pounds of cannabis headed outbound in the mail since 2013. Moreover, Williams says that federal agents and port police at Portland International Airport have seized more than $1 million in cannabis-linked cash and law enforcement in 16 states have reported seizing cannabis from Oregon.

“Overproduction creates a powerful profit incentive, driving product from both state-licensed and unlicensed marijuana producers into black and gray markets across the country. This lucrative supply attracts cartels and other criminal networks into Oregon and in turn brings money laundering, violence, and environmental degradation.”

He indicated that officials are currently working on a report detailing out-of-state cannabis diversion, cannabis sales to minors, cannabis cultivation on public land, and violent crime associated with the state’s legal cannabis industry.

“In sum, I have significant concerns about the state’s current regulatory framework and the resources allocated to policing marijuana in Oregon.”

Williams said he will convene a summit soon with members of the cannabis industry, public health organizations, citizen groups, and members of federal, state, local, and tribal law enforcement to address his concerns.

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A person with their hands on the keys of a complex keyboard console.

Pennsylvania Removes MMJ Patient Data from Law Enforcement Computers

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Pennsylvania medical cannabis regulators will cease making patient information available on the state’s law enforcement computer systems in an effort to reduce the chances that a registered medical cannabis patient will be flagged during a federal background check when purchasing a firearm, the Associated Press reports.

“Medical marijuana is an important medication for Pennsylvanians suffering from serious medical conditions. It’s essential that we treat medical marijuana as we would any other medication, and that we protect patient privacy in the process. As with any other health information, patient information regarding medical marijuana is not accessible to police.” – Health Department spokeswoman April Hutcheson to the AP

Instead of having the information in their computers, law enforcement officers in the state will have to rely on the state-issued medical cannabis cards to verify whether an individual is enrolled. Each card contains a state seal and expiration date.

Federal law prohibits registered medical cannabis patients are prohibited from purchasing or owning firearms because of its Schedule I status. The federal form required when purchasing guns specifically asks whether the purchaser is “an unlawful user of, or addicted to, marijuana” or other illegal drugs, noting that “the use or possession of marijuana remains unlawful under Federal law regardless of whether it has been legalized or decriminalized for medical or recreational purposes” in the state the applicant resides.

There are more than 10,000 medical cannabis patients in Pennsylvania. The program is set to commence early this year.

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Wooden desks in a classroom in front of a black chalkboard.

Federal Judge Rules Illinois Student Can Use & Store MMJ on School Grounds

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Federal U.S. District Court Judge John Blakely on Friday ruled that an 11-year-old medical cannabis patient in Illinois can be administered cannabis oil in school, according to an NPR report. The Illinois attorney general’s office told the court they would not challenge the ruling and would work with state officials to address the issue in the state’s medical cannabis law.

The patient, Ashley Surin, suffers from epilepsy brought on by leukemia treatments. She wears a low-THC patch on her foot but requires oil drops to be administered if she has a seizure. Her parents sued the state and Schaumburg School District, arguing that the state’s ban on medical cannabis in schools violates the Individuals With Disabilities Education Act, the Americans with Disabilities Act, the Constitution, and due process. Surin has been out of school for two weeks as the case unfolded.

District 54 Superintendent Andy DuRoss said before the case that the district was legally unable to grant the Surins’ request to allow Ashley to store her medication on school property, buses and school-related events and have faculty and staff administer it when necessary. He indicated the district would comply with whatever the court ordered.

The case is the first of its kind in the U.S.

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Looking across the water at the Newark, New Jersey shoreline.

Cannabis Legalization Bill Introduced in New Jersey

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New Jersey state Sen. Nicholas Scutari has introduced legislation to legalize cannabis for recreational use in the state. The measure would allow adults 21-and-older to purchase cannabis products in a taxed-and-regulated market.

The move comes on the first day of the state’s legislative session, which will mark the first term of incoming Democratic Gov. Phil Murphy who campaigned on the legalization issue. The proposal would allow adults to possess up to 1 ounce of flower, 16 ounces of cannabis-infused products in solid form, 72 ounces in liquid form and 7 grams of concentrates. Neither public-use nor home cultivation is permitted under the law.

The legislation includes a tax scale that increases over time. The year one rate would be set at 7 percent, followed by rates that climb annually of: 10 percent, 15 percent, 20 percent, and 25 percent.

In an interview with the Associated Press, Scutari said that the recent federal policy changes are not going to prevent New Jersey lawmakers from moving forward with the reforms.

“We’re still going to move forward. I think it’s going to be difficult for the federal government, especially without local law enforcement, to close it down.” – Scutari, to the AP

The measure has been sent to the Senate Judiciary Committee, of which Scutari is the chair.

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New York Lawmakers Hold Cannabis Legalization Hearing

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New York Assembly members held a hearing to debate the merits of legalizing cannabis in the state – the first step toward potential reforms – but advocates will have a huge roadblock to overcome in Democratic Gov. Andrew Cuomo, who still believes in the gateway theory.

The measure would legalize cannabis for individuals 21-and-older and create a taxed-and-regulated system. According to an amNewYork report, the last time the state made significant changes to its criminal cannabis laws was when non-public cannabis possession was decriminalized in the state about 40 years ago.

New York does have a medical cannabis system; however, it is limited in scope and does not allow patients access to flower.

The hearing featured members of both pro and anti-legalization public interest and advocacy groups, including incoming New York State Sheriffs’ Association President Sheriff Barry Virts who said he was concerned about drugged driving and cannabis fueling the opioid epidemic. Dr. Julia Arnsten, a professor at the Albert Einstein College of Medicine, addressed Virts’ concerns, citing a 2014 study published in the JAMA Internal Medicine journal which purported a 25 percent decrease in opioid overdoses in cannabis-legal states.

The measure is sponsored by Assemblywoman Crystal Peoples-Stokes, who, during the hearing, said that current drug laws disproportionately target minorities.

“It’s almost criminal what we’ve done as a country.” – Peoples-Stokes, via PIX11

In the Assembly, the legislation carries 14 co-and-multi sponsors.

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Parents of 11yo Illinois MMJ Patient Sue to Allow Use of Meds at School

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The parents of a Schaumburg, Illinois elementary school’s student are suing the district and the state after officials denied their 11-year-old daughter the right to use medical cannabis on school grounds, the Chicago Tribune reports. The plaintiffs argue that the denial is unconstitutional and violates due-process, the Individuals with Disabilities Education Act, and the Americans with Disabilities Act.

The student was treated for leukemia with chemotherapy, which led to the girl developing epilepsy and a seizure disorder, the suit says. According to the report, the suit could set a legal precedent as a landmark case.

District 54 Superintendent Andy DuRoss told the parents that state law prevents school officials from allowing cannabis products on school grounds, even for medical purposes. The student wears a low-THC patch on her foot to help control her seizures. When the patch is unable to control the seizures, she uses low-THC drops on her tongue or wrists to help control her condition.

“We cannot legally grant the request. We’re going to abide by the law and do our best to support our students within the confines of the law.” – DuRoss to the Tribune

The suit seeks a preliminary injunction to allow a school employee to help the student store and consume her medication on school property, on school buses, and at school-related events.

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Medical Cannabis Bill Introduced in Kentucky

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Medical cannabis legislation has been introduced in the Kentucky House of Representatives by state Reps John Sims and Alan Gentry, the Ledger Independent reports. The measure would establish excise taxes of 10 percent for a cultivator, processor, or producer selling directly to a compassion center; taxes of 5 percent for a cultivator, processor, or producer selling to a distributor; and taxes of 5 percent for a distributor selling to a compassion center.

The majority – 80 percent – of the revenues derived from the industry would go to the administration of the medical cannabis trust fund for the operation of the Cannabis Enforcement Program. The remaining 20 percent of the revenues would go to the local medical cannabis trust fund for enforcement of medical cannabis laws, medical cannabis licensing, hiring of drug recognition experts, local evidence-based drug rehabilitation projects, or educational activities within local jails, according to the bill text.

Secretary of State Alison Lundergan Grimes offered support for the measure, saying the state should “waste no more time.”

“What started as a whisper years ago is now a loud chorus. Kentuckians have declared 2018 as the year they expect action on medical marijuana from their legislators. … We’ve heard real, heart-wrenching stories from all over the Commonwealth about how access to cannabis can provide long-lasting and life-changing relief. The serious discussions this task force had have resulted in a solid piece of legislation that can change lives.” – Grimes to the Ledger Independent

If approved, the passage would make Kentucky the 30th state to legalize medical cannabis.

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Federal Proposal Would Add Adult-Use Protections to Rohrabacher-Blumenauer Amendment

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An amendment proposed by U.S. Representatives Jared Polis (D-CO) and Tom McClintock (R-CA) would create protections for state-legal, adult-use cannabis markets from federal interference.

The McClintock-Polis fix is actually quite simple: if approved, the amendment would update the existing Rohrabacher-Blumenauer protections by simply removing the word “medical” in “medical cannabis.” This would extend Rohrabacher-Blumenauer protections — which have blocked prosecutors from spending federal funds in the pursuit of licensed and legal medical marijuana operations since 2014 — to every state-legal cannabis program in the country.

The McClintock-Polis amendment has been proposed and rejected multiple times in the past — however, following Jeff Sessions’ unpopular move of rescinding the Cole Memo, many federal lawmakers have spoken out in favor of states’ rights and the time is ripe for sending a pro-reform message.

According to a NORML report, there is a letter circulating today among Congressional leadership that urges lawmakers to support the amendment. In their report, NORML urges readers to contact their elected representatives and ask them to support the McClintock-Polis amendment.

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Amazing view of a corporate skyscraper from the bottom.

Report: FinCEN Not Consulted on Sessions’ Cannabis Policy Change

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According to a report from Reuters, regulators at the federal Financial Crimes Enforcement Network (FinCEN) were not informed about Attorney General Jeff Sessions’ cannabis policy change but FinCEN spokesperson Stephen Hudack said the agency’s 2014 guidance “remains in place.”

According to September 2017 data from FinCEN more than 300 banks and nearly 100 credit unions are currently providing banking services to cannabis industry operators under the agency’s guidance. The 2014 FinCEN guidance was developed with input from Justice Department officials at that time; however, it also relied on the protection offered by the now-invalid Cole Memo.

Representatives Dennis Heck (D-WA) and Ed Perlmutter (D-CO) told Reuters that they will be sending a letter to FinCEN this week asking them not to rescind their guidance – which could “inject uncertainty into financial markets.”

In October 2016, FinCEN reported that 318 cannabis businesses were allowed access to banking services and that figure jumped to 400 at the end of August 2017, where it remained in September. The number of institutions dealing with the cannabis industry has been steadily increasing since the second quarter of 2014 – the quarter after the FinCen policy changes.

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Two women, laughing, enjoy a smoke session outside.

Survey: Canadians ‘Uncomfortable’ Using Cannabis with Family; Support Legalization

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As Canada moves forward with federal legalization, two in three Canadians surveyed by Business of Cannabis and Nanos Research indicated they are “uncomfortable” or “somewhat uncomfortable” using cannabis products with their families but citizens across all age demographics are supportive of legalization and retail sales.

The survey, released Jan. 10, found that 82.1 percent of Canadians under 35-years-old supported the reforms, along with 67.6 percent of those between 35 and 54, and 64.2 percent of citizens 55-and-older. Forty-two percent of respondents indicated they are “familiar” of what the federal and provincial government are doing in terms of regulations, another 46 percent said they are “somewhat familiar.”

Citizens would like the industry to do more to raise awareness about safety and education. The survey found just 17 percent of Canada agreed that the industry is taking sufficient steps to ensure responsible usage and safety, while 25 percent “somewhat” agreed and nearly the same percentage – 25 percent – disagreed that the industry was taking such steps.

Canadians overwhelmingly believe there are medical benefits to cannabis. A whopping 49 percent agreed that cannabis consumption has medical benefits, and another 32 percent “somewhat” agreed; while 7 percent “somewhat” disagreed and 6 percent disagreed.  

The survey was conducted Dec. 6 and 10, 2017 and polled 1,000 Canadians.

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Denmark Physicians Not Prescribing MMJ Under New Trial Program

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On Jan. 1 Denmark rolled out its four-year $3.2 million medical cannabis trial in earnest; however, according to the Copenhagen Post, few physicians have agreed to prescribe cannabis to qualified patients – and are under no obligation to do so.  

When the trial was announced by officials in November 2016, the stated goals were to “establish a defensible framework for the implementation of medical cannabis in the public health sector so patients with certain treatment indications can be treated with medicinal cannabis prescribed by a doctor.”

Why, then, aren’t doctors prescribing? The medical association Dansk Selskab for Almen Medicin has warned physicians that prescribing medical cannabis could compromise their safety. Doctors are required to carry out a professional assessment prior to prescribing cannabis and some experts have indicated that many of the nation’s general practitioners might now know how to prescribe or what for.

Klaus Høm, the head of the Scleroseforeningen association – which focuses on multiple sclerosis – said that many other doctors are refusing to prescribe cannabis as a matter of principle.

When approved by lawmakers, the program had the support from a wide-range of political parties. Jane Heitman, health spokesman for the Venstre Party, told the Post the development is “worrying.”

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Stacks of bitcoin.

Cannabis Payment Solutions Company to Integrate Bitcoin

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Nevada-based Medical Cannabis Payment Solutions, developers of payment processing technology Green, will soon begin accepting and processing payments in Bitcoin. The move comes amidst uncertain federal policy and questions about whether the federal Financial Crimes Enforcement Network (FinCEN) will continue to allow financial institutions to offer services to the industry without the protections of the Cole Memo.

“Traditional banking systems do not allow state-sanctioned marijuana to access their payment systems. The feedback we have received indicates that the opportunity is bigger than just cashless electronic payments in US currency.” – Jeremy Roberts, CEO of Medical Cannabis Payment Solutions, in a press release.

Today, FinCEN spokesperson Stephen Hudack said the agency’s 2014 guidance for cannabis businesses “remains in place”; however, the recent federal policy changes have created some uncertainty for industry operators.

Medical Cannabis Payment Solutions did not indicate a date for which they will begin accepting Bitcoin, but Sean Hullinger, chief legal officer, said the company plans on rolling out the tech “rapidly.”

“The payment system will offer a unique Bitcoin payment option enabling consumers to easily use the digital currency to make purchases. This process allows stores to accept not only electronic payments in U.S. dollars, but also digital currency (instead of cash only).” – Hullinger in a statement

The company operates throughout the U.S. in states with both medical and recreational regimes.

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The Vermont Capitol Building in Montpelier, Vermont photographed on a colorful, autumn afternoon.

Vermont Legalizes Cannabis For Adults; No Tax-and-Reg

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Vermont has become the first state to legalize cannabis via the legislature for the second time today in a voice vote, rather than a debate and roll call vote. The approval will allow adults 21-and-older to possess up to 1 ounce of flower, 5 grams of concentrate, and grow up to two mature plants beginning on July 1.

The landmark legislation still needs to be signed by Republican Gov. Phil Scott – who famously vetoed similar legislation last May citing drugged driving and public safety concerns. The House passed the measure 81-63 last Thursday.

Tax-and-regulate not included. The governor has convened a commission on the issue which forced the House to amend the bill to remove same-as provisions. Another amendment included in the bill requires would-be cultivators to obtain written permission from the landowner, or landlord, before growing cannabis for personal use.

A recent Public Policy Polling survey found 57-39 percent support for allowing adult use and possession; support dropped to 54-40 percent for a taxed-and-regulated regime.

Eli Harrington, co-founder of Heady Vermont, called the passage an important first step for advocates, patients, and the burgeoning cannabis and hemp industries in the state.

“We’ve taken the most important step of recognizing that in Vermont we believe adults have the right to responsibly consume and cultivate cannabis. Through this process the legislature has spent a lot of time educating themselves and deserve credit for listening to their constituents and learning about and issue many probably didn’t anticipate being so significant. This is the first step in a thousand-mile journey, and it is an important one, but this is the beginning not the end of cannabis reform in Vermont including focusing on updating out medical program.” – Harrington, to Ganjapreneur

Matt Simon, Marijuana Policy Project’s New England political director, said, “Vermonters should be proud” of their legislators.

“This will be an important milestone for the legalization movement. When Gov. Scott signs this legislation, Vermont will become the first state in the country to end marijuana prohibition through legislative action. MPP is proud to have helped lead the Vermont effort, just as we led the legalization ballot initiative campaigns in Maine and Massachusetts in 2016. In the past two years, we’ve seen incredible progress on marijuana policy across New England. Now that yet another state has rejected marijuana prohibition, there is even more pressure for Congress to take action to prevent any federal interference from Attorney General Jeff Sessions. It’s time for the federal government to respect the authority of states to determine their own marijuana policies.” – Matthew Schweich, MPP interim executive director, in a statement

Scott has indicated he would sign the bill if it made it to his desk this session, and once signed, Vermont will be the ninth state to legalize cannabis for adults, along with Washington, D.C. Vermont decriminalized cannabis possession in 2013.

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A collection of young medical cannabis plants under a ceiling of purple LED lights.

California Bill Would Force Courts to Expunge Low-Level Cannabis Crimes

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A bill introduced in California would make it easier for individuals with low-level cannabis convictions to expunge the charge from their records. The measure, introduced by Democratic Rep. Rob Bonta, would require courts to automatically expunge eligible records under provisions of the voter-approved Prop 64.

The legalization measure, which took effect on Jan. 1, also allows defendants to petition their sentencing court for a sentence reduction; however, courts are not obligated to take any action on a case without a petition.

In a press release announcing the legislation, Bonta said that the measure would “give people a fresh start to which they are legally entitled.”

“Long after paying their debt to society, the collateral consequences of having a criminal conviction continues to disrupt their lives in profound ways such as preventing them from gaining employment or finding housing. The role of government should be to ease burdens and expedite the operation of law – not create unneeded obstacles, barriers and delay. This is a practical, common sense bill. These individuals are legally-entitled to expungement or reduction and a fresh start. It should be implemented without unnecessary delay or burden.” – Bonta, in a statement

The measure would force courts to expunge the records of those convicted of possession under the new regime – up to 28.5 grams of cannabis and 8 grams of concentrate – but it would not force courts to seek sentence reduction for those currently incarcerated.

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The Detroit, Michigan city skyline.

Detroit MMJ Licensing on Hold After Lawsuit Filed Against City

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Detroit, Michigan’s medical cannabis licensing process is on hold after a business group filed suit against the state claiming they were denied a business license under the new regime because they violated Detroit’s old ordinance, the Detroit Free Press reports. If the suit drags on until Feb. 15, all current operators licensed under the city’s emergency rules could be forced to shut down.

Detroit’s rules allow the city’s currently operating dispensaries to stay in businesses until Feb. 15 as they work toward final approvals; however, none of the dispensaries have yet obtained such approval.

“All the dispensaries operating in the city are going to have to shut down. Everybody who is a card holder in Detroit is going to be impacted.” – Amir Makled, attorney for Advanced Wellness dispensaries in Detroit to the Free Press

David Harns, a spokesman for the Department of Licensing and Regulatory Affairs, indicated that those who do not receive final approval by Feb. 15 and choose to stay open could be at risk of being denied a state license for failing to adhere to the rules, according to the report.

“This just does a great deal of harm for all the stakeholders. Hopefully we can find a solution before the 15th.” – Jonathan Barlow, spokesman for Sensible Cannabis Reform to the Free Press

Michael Stein, the attorney for the seven to 10 businesses who filed the suit, said his clients were denied a medical cannabis operator license because they didn’t meet the zoning requirements of the old ordinance; however, the new rules – approved by Detroit voters in November – reduce the required distance for medical dispensaries from schools, parks, and daycare centers from 1,000 to 500 feet and Stein argues that his clients should qualify under the new regime.

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Toker Supply #RIPiece Marketing Strategy Incentivizes New Sales

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