A woman holds a large, cured cannabis nug in her palm.

New Hampshire Cannabis Decriminalization Bill Takes Effect

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New Hampshire’s cannabis decriminalization bill took effect on Saturday, making the state the 22nd to eliminate criminal penalties for low-level possession, according to a Forbes report. New Hampshire was New England’s remaining holdout providing jail time for cannabis possession.

The measure, which eliminates criminal penalties for possession up to three-quarters of an ounce until the fourth such offense in three years, was signed by Gov. Chris Sununu in July. Individuals convicted of possessing up to the threshold will be subjected to a $100 fine for the first and second offense, a $300 for a third offense within a three-year window, and a class B misdemeanor on the fourth offense within three years.

Previously, the New Hampshire statute called for first-time possession charges of a criminal misdemeanor punishable by a $2,000 fine and up to one year in jail. The new law, which the governor described as “common sense” reform, specifically prohibits police from making arrests for a cannabis possession violation.

In May, a Granite State Poll found that 68 percent of New Hampshire adults supported recreational cannabis legalization, with another 74 percent supporting a tax-and-regulate regime. Last year, the House voted down a measure that would have implemented a taxed-and-regulated cannabis market in the state.

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An aerial view of downtown Newark, New Jersey.

Poll: New Jersey Adults Support Cannabis Legalization

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According to a Quinnipiac University poll, 59 percent of New Jersians support allowing adults to legally possess “small amounts” of cannabis, with 38 percent opposed including 53 percent of Republicans. Seventy percent of Democrats favored legalization, along with 60 percent of independents, 62 percent of men and 56 percent of women.

The poll also found 55 percent of respondents said they would “definitely not try” cannabis if it were legalized for adult-use in the state; just 9 percent indicated they would “definitely try” it. Forty-six percent of respondents indicated cannabis and alcohol were “equally” as dangerous, yet 62 percent of respondents aged 18 to 34-years-old believed that cannabis was less harmful than alcohol. No majority believed that cannabis was more harmful than alcohol.

In May, state Sen. Nicholas Scutari, who championed the state’s medical cannabis legislation, introduced S.3195 which, if approved, would legalize cannabis for adults 21-and-older and set up a taxed-and-regulated regime. Scutari indicated the advance introduction of the bill was in preparation for the new gubernatorial administration as Gov. Chris Christie has reached his the end of his term. The measure has been sent to the Scutari-chaired Judiciary Committee in the Senate. It is sponsored by Sens. Reed Gusciora, Tim Eustace, and James J. Kennedy in the House and referred to its Judiciary Committee.

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A young cannabis plant under the reddish glow of an indoor LED grow light.

Zelda Therapeutics-led Observational Study Finds Hope for MMJ as Autism Therapy

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In an observational study by Australia’s Zelda Therapeutics Ltd., 21 autism patients demonstrated significant symptom improvements when treated with medical cannabis extracts over a 12-week period. The study found that 71.4 percent of patients treated with the extracts instead of traditional medications, such as atypical antipsychotics, showed improvement in at least one core symptom, including social interaction, language or repetitive behaviors, and 66.7 percent of patients showed “significant general overall improvement.”

The study involved patients with a median age of 9 years, 10 months who had not responded to conventional treatments. The trial eas led by Dr. Gisela Kuester, a neurologist and clinical research director for Fundación Daya, a Chilean non-profit advocacy group and medical cannabis firm.

Harry Karelis, executive chairman for Zelda, called the study results “exciting” and supportive of “the anecdotal evidence…showing the positive effect medicinal cannabis has on treating autism symptoms.”

“Zelda will use this baseline data to design its clinical trials and generate rigorous scientific data that validates the clinical benefit of medical cannabis,” he said in a press release. “We hope that in the near future [Zelda] can provide an alternative treatment for sufferers of this condition which is of major global significance.”

Zelda expects a six- to nine-month clinical trial to begin within three months after receiving regulatory approvals.

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Headphones and a digital music player app is open on an iPhone screen.

Washington Cannabis Company Offering Music Downloads with Joint Purchases

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A new cannabis-focused music distribution service called Hi-Tunes is offering pre-rolled joints that come with QR codes for free music downloads, Complete Music Update reports. The platform is a spinoff of cannabis brand Caviar Gold’s in-house record label.

Scott McKinley, co-founder of the service, said Hi-Tunes gives artists branded cannabis lines to market and if sales do well in their Washington market, the company will release more strains on the artist’s line.

“Music used to sell sheet music, then records and record players, tapes and tape players, CDs and CD players, MP3 players – and now music has nothing to sell,” McKinley said in the report. “We intend to change that by matching music with marijuana. Smoke this, listen to that. It’s a beautiful concept.”

Yoshi Gish, one of the collaborating artists, said he was looking for a new distribution method when he was approached by McKinley in 2016 about the project.

“Records, tapes, and CDs are now so slow and bulky compared to our network, but now a simple scan on a smartphone can connect people with my music,” he said. “I feel cannabis can influence many new avenues of distribution.”

The first line of products is available at Uncle Ike’s in Seattle.

Editor’s note: A previous version of this article incorrectly indicated that Hi-Tunes was founded as a part of cannabis brand Caviar Gold.

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A Goldendale, Washington Police Department SUV parked on the side of the road.

Suspected Budtender Kidnapper Arrested; Victim Still Missing

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A man suspected of shooting at and kidnapping budtender Cameron Smith from his Cheney, Washington workplace was arrested yesterday in Goldendale, according to a KHQ report. Smith, as well as other two other suspects, are still missing.

Donavan Culps, 36, has been pursued since the Sunday kidnapping, which took place at the Lucid Cannabis store in Cheney, Washington.

The Cheney Police Department issued the following statement after the arrest in Goldendale:

On September 14, 2017 at approximately, 2:13 p.m. Donovan Culps was taken into custody by members of the multi-jurisdictional Yakima Violent Crime Task Force. He was taken into custody in Klickitat County, in the Goldendale, WA area following a short pursuit ending in a collision. There were no injuries and while Donovan Culps was taken into custody the other occupants of the vehicle fled on foot and have not been identified at this time. Detectives from the Cheney Police Department will be responding to Goldendale to conduct follow up in this case. There are no other details at this time.

Two other individuals are suspected of involvement with the crime, including Violetta Culps — Donavan’s 18-year-old niece — but the other suspects have not been located at this time.

Law enforcement throughout the region have been on the lookout for Culps after security footage from the Lucid Cannabis store in Cheney showed Culps approach Smith in the parking lot as he was sitting in his car while taking a break from work. Culps then brandished a gun, fired two shots into the vehicle, got in the car, and drove off with Smith still inside. Since then, both Smith’s emptied wallet and stolen car have been found, abandoned.

The investigation is ongoing.

A candlelight vigil was held Monday evening at Lucid for community members and Smith’s friends and loved ones to come together in hope for his safe return.

 

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The national flag of Uruguay flying on a windy, cloudless day.

Uruguay Moving Legal Cannabis Sales from Pharmacies to Cash-Only Shops

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Officials in Uruguay are moving retail cannabis sales from pharmacies to shops that will sell the products for cash, the Panama Post reports. The move comes less than a month after banks said they had to close accounts of pharmacies participating in the state-run program due to international anti-money laundering laws.

Three of the 16 pharmacies had stopped selling cannabis due to the banking issue.

According to an Associated Press report, Uruguayan law requires employees and salaries be paid by direct deposit, which makes it tough to run a cash-only business in the South American nation. Uruguayan officials had said they did not anticipate the banking issue when they legalized cannabis nationwide in 2013.

Juan Andrés Roballo, assistant secretary of the presidency, called the move a “provisional solution” to the banking and cannabis sales problem.

“This is an exceptional situation that enables exceptional solutions,” he said in the report. “The best, and definitive (solution), would be a change in legislation (in the United States).”

The Post indicates that there are currently around 13,500 people registered with the state to purchase cannabis products; in early August the number hovered around 11,500. Most of the participating pharmacies report that their 2-kilogram supplies are often gone quickly after it goes on sale.

 

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A Delta Airlines aircraft sits on the tarmac, waiting to be next in line for takeoff.

Employees of Arkansas’ Largest Airport Could Be Denied MMJ Use Under Policy Proposal

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Proposed personnel policy changes at Bill and Hillary Clinton National Airport/Adams Field would allow airport employees to be fired if they test positive for cannabis, even if they are registered with the state’s medical cannabis program, the Arkansas Democrat-Gazette reports. The voter-approved constitutional amendment does include language that provides for “safety-sensitive” positions to be subject to increased scrutiny.

“‘Safety-sensitive’ positions are those ‘designated in writing by an employer as a safety sensitive position in which a person performing the position while under the influence of marijuana may constitute a threat to health or safety,’ the law states.

At Clinton National, Arkansas’ largest airport, all employees are considered to hold “safety-sensitive” positions because they are permitted to access ramps, taxiways, runways and other parts of the airport where planes are active, said Airport Executive Director Ron Mathieu in the report. About 150 people are employed at the airport.

“It applies to everyone because everyone has an opportunity because of their level of security to go out to the airfield,” he said in an interview with the Democrat-Gazette. “If you have access to the airfield and you can be out there, you are in a ‘safety-sensitive’ position.”

The Little Rock Municipal Airport Commission has recommended adopting the policy.

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Survey Finds Majority of Ontarians Prefer Private Cannabis Sellers to State-Run

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According to a Nanos Research and Consumer Choice Centre survey, 55 percent of Ontarians prefer to have cannabis sold by licensed private retailers than the Liquor Control Board of Ontario, with 40 percent preferring the state-run option. Respondents were split 48 percent to 46 percent in favor of licensed and regulated cannabis lounges.

Of the supporters for the lounges, 58.4 percent were between 18 to 39-years-old, which dropped to 44.9 percent for respondents aged 40 to 59-years-old, and to 39.1 percent for those 60-and-older.

Women preferred allowing private entities to provide retail sales, 57 percent, compared to 51.8 percent for men; however a large number, 61.8 percent, refused to answer the question on the survey.

In a statement to Insauga, the CCC called the state-run option a “bad deal for consumers.”

“The government banning private sector cannabis stores is a move that not only limits consumer choice but also enables black market sales,” the CCC in the statement.

David Clement, North American affairs director for the CCC said that citizens “have already made it clear” they don’t want the government to run the stores that sell cannabis products.

“The move to create a cannabis control board will simply replicate the existing issues we see with the LCBO and alcohol,” he said in the report. “The province should embrace private retail and the wants of consumers.”

Ontario officials have said they plan to license 30 to 60 dispensaries throughout the province.

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Cannabis plants growing in an indoor cultivation site in Washington state.

AlphaRoot: Securing Business Insurance for Every Sector of the Cannabis Space

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Business insurance is important — but for cannabis operators and even companies that are ancillary to the industry itself, it can be difficult to find the right insurance package to fit your company’s needs. AlphaRoot is an insurance brokerage founded to help cannabis entrepreneurs navigate the insurance landscape to find the best combination of coverage and price customized to their business endeavor.

The New York City-based company was founded in 2015 and is dedicated entirely to the cannabis space.

General manager Jeff Samuels was an early employee and VP of Sales at Founder Shield, AlphaRoot’s parent company. FS specializes in insuring virtually every startup industry and Jeff found early success working with cannabis accelerator programs like Canopy Boulder and Gateway.

“AlphaRoot was born out of the desire to become hyper-focused on the cannabis industry and to service those businesses who value their longevity,” Samuels said.

Since its launch, AlphaRoot has secured insurance for more canna-tech companies and ancillary cannabis businesses across the nation than any other insurance brokerage, said Samuels. The company also procures complex insurance policies for cannabis growers, processors, retailers, and other “touch the plant” companies.

However, considering the industry’s federal status and the overwhelmingly strict regulations common in state-legal markets, cannabis industry professionals and entrepreneurs work best when working together. And for the AlphaRoot team, being an insurance broker in the cannabis space is about more than just connecting with clients; it’s also about connecting clients with each other.

“The best part of the job for us is our portfolio of clients,” Samuels said. “We try to create an environment in our portfolio where — if we know one client is looking for a specific software or a specific grow partner or dispensary — then we’re making those connections. We also like to go above and beyond: a lot of times, our portfolio companies are looking to close out a round or raise additional capital, and — because we actually insure a couple different large funds — we’re able to make those connections, plugging startups who are still looking to raise outside capital.”

AlphaRoot also works with their clients to help them toward full compliance with state laws around insurance, as that’s the best way to secure lower premiums. For example, if they can demonstrate to insurance carriers that a cannabis company has taken steps to ensure compliance or product safety — whether that’s via additional lab testing, consulting a security specialist, or something else entirely — AlphaRoot can use that information to reduce insurance premiums for their clients.

Business insurance is all but mandatory for endeavors in a mainstream industry, and now regulators in legal cannabis states have begun requiring entrepreneurs to secure, at minimum, general liability insurance in order to receive and maintain their license.

“Nobody wants to be pitched on insurance products,” Samuels said. “But at the same time, these people are risking millions of dollars on the state licensing application alone, so we think that what we’re doing is really important for making sure these investments are safe, that the businesses are going to be able to scale and have that opportunity to grow.”

To learn more about AlphaRoot and business insurance options for the cannabis industry, visit the company’s website at AlphaRoot.co.

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Eaze Raises $27M, Adds Investor to Board of Directors

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Eaze, the cannabis technology and delivery firm, has raised $27 million in Series B financing led by Bailey Capital, bringing the company’s total funding to $52 million. Bailey Capital is led by James Bailey, who has also invested in PAX Labs and High Times. DCM Ventures, Kaya Ventures, and FJ Labs also participated in the round.

“Eaze has transformed the way people legally access marijuana. Their focus on the customer experience through wide selection, competitive pricing, and fast delivery meets the demand of today’s consumer,” said Bailey, who also joined the company’s board of directors, in a statement. “As a tech company, Eaze is taking a stand in an industry negatively affected by the century-long war on drugs and takes a proactive mission to make cannabis an industry of equality and opportunity. Eaze is poised to create more jobs and tax revenue than any other company in the industry.”

Jim Patterson, CEO, indicated the investment would help the company migrate into California’s recreational cannabis market.

“With the legalization of adult use marijuana on the horizon, we look forward to using our data, technology and platform to continue to serve our mission of providing safe, secure access to marijuana products at the lowest prices with the utmost convenience,” he said in a press release.

Since its launch in 2014, Eaze has seen a 300 percent year-over-year gross sales increase and is facilitating over 120,000 deliveries per month.

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Nevada Governor: Recent Opinion Allowing Social-Use Venues ‘Circumvented’ Legislative Process

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Nevada Gov. Brian Sandoval insists that a recent decision by the state Legislative Counsel Bureau indicating that the state’s adult-use law does not prevent municipalities from licensing social-use clubs has “no precedential value,” and the issue should be determined by the legislature in 2019 according to a KTVN report.

“I also question it because there was a bill that was introduced in the legislature to allow for pot lounges, which again, I opposed,” he said in the interview. “That bill didn’t go anywhere and now I feel like they’ve circumvented the legislative process to happen.”

Sandoval did not support the ballot initiative to legalize recreational cannabis in the state. The LCB’s interpretation effectively would allow local governments to grant social-use licenses to cannabis-friendly lounges, coffee shops, and other businesses, including special events such as festivals. State Sen. Tick Seagerblom said the decision sets the stage for Nevada to become “the marijuana capital of the world.”

Will Adler, director of the Sierra Cannabis Coalition, said the measure gives tourists options to use cannabis and cannabis-friendly lounges and lodging could create “a new avenue for marijuana tourism” in the state.

“Don’t expect them to crop up everywhere because it’s still up to the local government to say ‘Hey, we’re going to regulate these at our level because the legislature hasn’t done anything with it yet,’” Adler said in the report.

So far, there is no state with recreational cannabis laws that allow for social use. Last month, cannabis regulators in Alaska unveiled rules that would regulate a state-wide social use policy, but the issue has not yet been approved by the Marijuana Control Board. Denver, Colorado voters approved a social-use ballot initiative last November, but the plan is viewed by many industry operators as too strict to take off.

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Sen. Orrin Hatch Introduces Bill to Allow Comprehensive Federal MMJ Research

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Utah Sen. Orrin Hatch, a Republican and senior member of the Senate Judiciary Committee, gave an impassioned speech on the Senate floor urging that his colleagues support his bill to encourage cannabis research and that the federal government considers cannabis therapies as a tool in the fight against the opioid epidemic.

“In Utah and across the nation, opioid abuse continues to ravage good, hardworking families who have fallen captive to the tyranny of addiction. While some people are using these prescription drugs appropriately, others are abusing them at alarming rates,” the former Senate Judiciary Committee chairman said. “Because Utahns have watched their family members, friends, and neighbors grapple with this epidemic, many are seeking non-narcotic alternatives that can help with pain. Medical marijuana is just one such alternative. And after careful, deliberative thought, I’ve concluded that it’s an alternative worth pursuing.”

While Hatch said he is “strongly against the use of recreational marijuana,” he is concerned that, in the “zeal to enforce the law,” lawmakers have blinded themselves “to the medicinal benefits of natural substances like cannabis.”

“While I certainly do not support the use of marijuana for recreational purposes, the evidence shows that cannabis possesses medicinal properties that can truly change people’s lives for the better,” Hatch said on the Senate Floor. “And I believe, Mr. President, that we would be remiss if we threw out the baby with the bathwater.”

He said the Marijuana Effective Drug Study Act of 2017, or MEDS Act, “updates the law for the 21st century, allowing for groundbreaking research on the potentially life-saving benefits of medical marijuana.”

“The MEDS Act would encourage this research through reduced regulatory interference, and it would expand sources of research-grade marijuana with the assurance of a quality-controlled product,” he explained. “My proposal would also allow for the commercial production of drugs developed from marijuana once they have been approved by the [Food and Drug Administration.”

Despite his support of medical cannabis reforms, Hatch was adamant against adult use and purported the prohibitionist claims that cannabis “can lead to broader drug abuse.”

Hatch is joined by Democratic Senators Brian Schatz, and Chris Coons, and Republican Senators Thom Tillis, and Cory Gardner in sponsorship of the measure.

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Roger Stone Says He is Willing to Work with Anyone to End Federal Prohibition

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In an editorial published by the Gateway Pundit, Roger Stone said that Attorney General Jeff Sessions’ “aggressiveness” and “obvious plan to reignite” the War on Drugs is “in direct contradiction to the position” of President Donald Trump, “who very clearly” supported states’ rights to implement medical cannabis policies.

“Recently I launched a bipartisan effort – the United States Cannabis Coalition – to persuade [Trump] to honor this pledge made during the presidential campaign to respect the states’ rights to legalize marijuana,” Stone, who served as an advisor to Trump during his campaign, wrote. “We want the President to order [Sessions] to continue to honor the ‘Holder Memo’ which ordered the feds to stand down on enforcement in the states where cannabis has been legalized under President Obama.”

In the article, Stone also derided the Cannabis World Congress and Business Expo boycott that successfully led to his ouster as keynote speaker at both the Los Angeles, California and Boston, Massachusetts events.

The boycott was organized by the Minority Cannabis Business Association because of several racist and misogynistic statements Stone has made throughout his political career. Stone wrote that he had already apologized for his “sarcastic” use of the word “negro.” In response to the accusations of misogynistic and anti-Semitic language, he wrote, “Criticism of individual women does not make one a misogynist nor does criticism of an individual Jewish person make you an anti-Semite.”

“Even though this attack on me was both orchestrated and based on a false narrative of who I am in what my motives are [sic] I was deeply disappointed in the organizers of the expo who canceled my speech, stampeded by a small but well-organized group of loudmouths more interested in scoring political points than in the future of continued legal access to cannabis,” he wrote.

Stone argues that the boycott’s assertion that he should be prevented from speaking because of his support for Richard Nixon, who launched the War on Drugs, Ronald Reagan, whose administration began the “Just Say No” campaign which further demonized cannabis use, and Trump is misguided because “when it comes to the failed, expensive and racist war on drugs, both parties are complicit and there’s plenty of blame to go around.” In his defense, he cites the 1994 Crime Bill supported by President Bill Clinton, which he calls “among the most racist tools of the war on drugs,” and he also claims that former Vice President Joe Biden’s record shows, “he is perhaps the greatest drug warrior of all time.”

“Despite all of this I am prepared to work with any Democrat, liberal, or socialist who supports legalized cannabis and wants to avert the reigniting of the war on drugs under [Trump],” he wrote. “I will not be silenced by a small group of people who have accomplished nothing in the current struggle to preserve the states’ rights to legalize marijuana. I have the ear of the President. Do they?”

Although Stone was bounced from the CWCB events, he will be speaking in Los Angeles during the expo at noon on Sept. 14 at the Alchemy Lounge.

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Former New York State Senator Joins the Marijuana Policy Project

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Former New York state Sen. Alfonse D’Amato, a Republican who served in the chamber from 1981 to 1999, has been hired as a senior adviser for the Marijuana Policy Project as they expand into the state, the New York Daily News reports. The advocacy organization also hired attorney and community organizer Landon Dais to serve as its New York political director.

D’Amato, who never voted on cannabis policies during his tenure as a legislator, was described by the News as against the use of cannabis for much of his life, but that his position began to evolve following an interview with Howard Stern in 2009. In the interview with the News, D’Amato called Attorney General Jeff Sessions’ position on cannabis policy “ridiculous.”

“I say how can you on the one hand be for states’ rights and on the other hand say the states that have legalized the use of marijuana, that you’re not going to recognize that,” he said. “You can’t be a states’ rights person only when you like what the states are doing and not what the feds are doing. It’s one or the other.”

New York Conservative Party chairman Michael Long, an ally of D’Amato during his state Senate tenure, said he hopes the former lawmaker “doesn’t partake in a move that would open the door for legalization of marijuana.”

D’Amato said that while recreational legalization is “not something [the MPP] are promoting” the conversation is taking place in New York as well as the rest of the nation.

“There is no doubt that that is something that will come more and more to the forefront as time goes on,” he said.

After leaving the legislature, D’Amato founded Park Strategies LLC, a lobbying firm, serving as its managing director.

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A green wall of cannabis foliage inside of a commercial grow site.

Maine Lawmakers Seek 10% Excise Tax on Retail Sales

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Lawmakers in Maine are seeking to add a 10 percent excise tax on retail cannabis sales, bringing the total rate on adult-use cannabis products to 20 percent when paired with the 10 percent sales tax, according to a Sept. 11 letter from legislative leaders. The draft bill was unveiled in the letter from Sen. Roger Katz, Senate chair, and Rep. Teresa Pierce, House chair, to the members of the Joint Select Committee on Marijuana Legalization Implementation.

In the letter, officials said the decision was a consensus made by the committee over the “past number of months” and that leaving the determination of the excise tax rate to Maine Revenue Services or the Department of Administrative and Financial Services could implicate Article IX, section 9 of the state constitution which states, “The Legislature shall never, in any manner, suspend or surrender the power of taxation.”

The officials also expressed concern over allowing dispensaries currently operating as not-for-profits to convert to for-profit corporations. The authors conclude that Part B of the proposal will allow for the conversion, as desired by current operators, but that the “merits of the proposal is outside the jurisdiction” of the committee.

“Although this language is included in the bill draft, we intend to advocate for its removal during the work session,” the letter states.

A public hearing on the proposal is set for Sept. 26, with work sessions planned the two following days.

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Detroit skyline with the MacArthur bridge leading to Belle Isle and Detroit Boat Club in the foreground.Detroit skyline with the MacArthur bridge leading to Belle Isle and Detroit Boat Club in the foreground.

Michigan Will Not Shutter Dispensaries; Operators Who Continue Doing Business Risk Being Shut Out

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Michigan Department of Licensing and Regulation officials have indicated they will not shut down current medical cannabis dispensaries operating in the state, but if they are shuttered by police it will damage their chances of being granted a license when the state begins issuing them later this year, according to a Detroit Free Press report.

“The department will not shut down dispensaries, but it will be a business risk for them to continue to operate because they could be shut down by law enforcement and it could be an impediment to getting a license,” said Andrew Brisbo, director of the Bureau of Medical Marijuana Regulation.

In a statement to the Free Press, representatives from LARA said that the approach allows existing operators to “wind down while giving adequate time for patients to establish connections to caregivers to help ensure continuity of access.”

The agency will issue emergency rules in place in the interim, after consulting with the state Attorney General’s Office, and will begin issuing licenses on Dec. 15. Any dispensary operating at that time will jeopardize its chances at obtaining a license.

Previously, Donald Bailey, chairman of the Michigan Medical Marijuana Licensing Board, said that he wanted to see dispensaries close their doors by Sept. 15 if they wanted to be considered for a license in December.

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Hawaii vacationers on a beach on a sunny day.

Hawaii Tabs CanPay for MMJ Industry Transactions

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All eight of Hawaii’s medical cannabis dispensaries will go cashless as of Oct 1., opting instead to use the CanPay system, according to a KOHN2 report. In addition to allowing the dispensaries to forgo cash transactions, the debit payment mobile application system will allow them to direct deposit employee payroll, collect and remit taxes, and make vendor payments.

Gov. David Ige, said the system will allow the state to focus on product and public safety and “makes dispensary transactions transparent.”

“These dispensaries accumulate a lot of cash, which creates challenges for state employees who have to interact with dispensaries as well as with the general public,” Ige said in the report. We’ve been looking for innovative solutions to this challenge.”

The system will be provided by Colorado-based Safe Harbor Private Banking, and Maui Grown Therapeutics and Aloha Green, the two dispensaries currently operating in the state, have already set up accounts with the credit union. The other six companies approved to dispense medical cannabis products are still at varying stages of the approval process and development.

Customers and business owners will download the app to a smartphone, which links up to a checking account, and receive a QR code, which masks the account number of the patient, said state Financial Commissioner Iris Ikeda.

“This QR code is pretty safe,” Ikeda told KOHN. “There’s no personal, non-public information going through this QR code. It will expire after 30 minutes, so you want to be sure that if you want to use this, you get to the medical cannabis dispensary in time.”

Financial services for the cannabis industry are not available in Hawaii because of cannabis’ Schedule I designation under the federal Controlled Substances Act.

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A student resting their head on a table behind a stack of large textbooks.

What “Back to School” Means for Your Cannabis Brand

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As we close the summer and head back to our fall routines in business and life, I began thinking of how much building your cannabis brand mirrors heading back to school. You often hear CEO’s say “my brand is my baby,” and in many ways it’s true.

Many business owners make the mistake of believing that once you have a product or service and a logo, that you’ve built your brand. This couldn’t be further from the truth. I often speak about how your brand is alive. Like a child, a brand must be built, be educated, be tested, evolve, and graduate. How are you checking in and helping your brand grow? How as a “parent” are you making sure your cannabis brand has the foundation for success?

In “kindergarten” — or the initial launching your brand — it’s essential to build consistency and repetition. You’re protective, delicate, deliberate. What does that look like in a business?

  • Develop the rules of your brand. Repetition of your branding rules is critical. Develop your style guide and stick to it. “Get back to the basics.” What are your colors? Your fonts? Where is your logo placement? Training your eye and reinforcing your brand basics is essential to establish a strong brand identity.
  • Test your ideas. I cannot say this enough about building a business: VALIDATE YOUR IDEAS. Like a toddler looking for reassurance from a parent, it’s critical that you are consistently checking with your audience and a trusted group of advisors to strengthen your identity. Feedback at this stage is critical and will save you thousands of dollars and hours of energy if you focus on using proper feedback to refine your brand and product. On that note…
  • Find your tribe. “It takes a village to raise a child,” and the same is true for your brand. The trusted people you choose as influencers and sounding boards for your business will have a lasting impact on your success, so choose wisely. Look for honest, articulate team members who are focused on problem-solving and who share your vision. Work with them to reinforce a strong identity protection.

You’ve found your tribe and built your foundation, what’s next? It’s “middle school,” or the time in your business when you really begin to see your company grow. It’s awkward, it’s painful, but it’s essential. At this stage, your brand is connecting to its own growth cycle and beginning to expand. How can you facilitate healthy brand growth that increases your brand’s value and worth?

  • Form beneficial partnerships. Making new friends can be tough in a new space, but forming alliances with other like-minded business leaders can offer insight into your business, help you develop creative strategies, and move your entire industry forward.
  • Put your brand in new situations. You’ve got your foundation and brand personality, it’s time to test new waters. Are there new conferences you can attend? New vending opportunities? There may be a target market you haven’t considered. Now would be a great time to reach out to a branding expert and get their advice on potential opportunities to carefully grow.
  • Grade your brand. This is the time to sit down and evaluate where you are. Is your brand adapting to every opportunity or is it struggling with visual and verbal execution? Put yourself in a teacher role and grade yourself. Your grading needs to include evaluations on:
    • Visual — How do we look? How does your brand look in its execution?
    • Verbal — How do you sound? Does your messaging come across to your audience as intended?
    • Internal — Is your brand working within your organization?
    • Environmental — How does your brand fill out a room?
    • Social — How does your brand perform on multiple social channels?
The back-to-school season is an excellent time in the year for brand reflection and strategizing for the months ahead.

The goal in your brand’s “high school” years is to develop your self-expression and strengthen your relationships with your consumers. This is the most creative yet most challenging place for your brand. Here, your culture thrives and sets the tone for lasting success. How can your brand help take your company to the next level? How can your brand differentiate you from your competitors? How can your brand build an identity that resonates with your customers for the long haul?

  • Add secondary visual and verbal elements to your brand. What other visual and verbal elements can you add to your branding palette and incorporate in your style guide that would elevate the experience for your consumer?
  • Open yourself to opportunity. Develop the nuances that make you an intriguing brand. Look at this as an opportunity to grow your most creative ideas and team members.
  • Change vending setups. Again, we want to expand our opportunities for growth. Find opportunities to continue to develop and promote your brand in new spaces and new markets.
  • Build Recognition. Continue to develop your space and build relationships in your market. Brand awareness is essential for healthy growth.

As we look at the back to school season, it’s important to remember these lessons of growth and opportunity — they cover the baby steps to running full speed ahead, and it’s critical you’re touching base with your team and connecting with your consumer all along the way.

As your brand “grows up,” you will look back on how the discipline and effort you instilled from its inception plays an essential role in your success. When you invest your time into a proper education, your brand will work for you in dividends. And remember: go as far as you can see, and when you get there you’ll be able to see further.

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A cannabis worker plucks large leaves from the stalk of a freshly harvested plant.

Two State Reps. Named to Vermont Marijuana Commission

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Vermont House Speaker Mitzi Johnson, a Democrat, has appointed Rep. Ann Pugh and Rep. Maxine Grad to the governor’s Marijuana Advisory Commission. The appointments by Johnson are required under the executive order creating the commission.

Pugh, a Democrat, serves as the chair of both the House Committee on Human Services, and the Joint Legislative Child Protection Oversight Committee. Pugh voted against the measure to legalize cannabis possession, up to 1 ounce, by adults 21-and-older in the state, which was ultimately passed by the legislature, but vetoed by the governor.

Grad, also a Democrat, chairs the House Committee on Judiciary and sits on the Joint Legislative Justice Oversight Committee. Grad voted in favor of the legalization proposal.

Grad and Pugh are the latest commissioners to be named; earlier this week Republican Gov. Phil Scott announced that the commission would be headed up by the former chairman of the Vermont Democrats Jake Perkinson and Burlington-based attorney Tom Little.

The Senate Committee on Committees will also make two appointments along with the Secretary of Agriculture or a designee; the Commissioner of Health or a designee; the Secretary of Commerce and Community Development or designee; the Commissioner of Taxes or designee; the state Attorney General or designee; and the Executive Director of the States’ Attorneys and Sheriffs, or designee.

The first meeting of the commission is set for Oct. 1; Gov. Scott has indicated he wants an initial report by Jan. 15, 2018.

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California Governor Signs Bill Fining Cannabis Use in Vehicles, Vetoes Packaging Measure

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Under a California bill signed by Gov. Jerry Brown on Monday, drivers and passengers in a vehicle caught consuming cannabis will be fined $70, the Los Angeles Times reports. The law includes smoking, vaping, or consuming cannabis-infused edibles, and is similar to the state’s open container law for alcohol.

Sen. Jerry Hill, a Democrat, said the law was necessary because a 2012 California Office of Traffic Safety found that more weekend nighttime drivers in the state tested positive for cannabis than alcohol. Under the adult-use regime, it is illegal to possess an open bag of cannabis in a vehicle and to drive while under the influence.

Gov. Brown vetoed another bill that would have prohibited cannabis packaging that might appeal to children. According to the report, he said the administration is drafting its own rules to keep cannabis away from kids.

California’s Bureau of Cannabis Control released their draft rules on Sept. 6, which include packaging requirements. According to the proposals, all cannabis products would feature a label that includes the phrase “Keep out of reach of children.” The BCC indicates that the most common symptoms associated with cannabis ingestion by children are “lethargy, coma, inability to walk, and vomiting.”

The draft rules are subject to 30-day public comment. The law signed by Brown takes effect immediately.

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Smoke drifts upwards inside of a dark room.

Nevada Legislative Counsel Bureau Opinion Could Set Stage for Cannabis Social-Use

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In an opinion issued on Monday, Nevada’s Legislative Counsel Bureau said that nothing in the state’s recreational cannabis law prevents local governments from permitting cannabis consumption at businesses, the Las Vegas Review-Journal reports. The opinion effectively allows municipalities to create social-use licenses that could be granted to cannabis-friendly lounges, coffee shops, and special events such as festivals.

State Sen. Tick Seagerblom, the Democrat who sponsored the state’s medical cannabis regime and has long supported the adult-use program, said the decision adds to the state’s toolbox in becoming “the marijuana capital of the world.”

“This is what we’ve been waiting for,” Segerblom said in the report. “It’s fantastic.”

Andrew Jolley, CEO of The+Source dispensaries and president of the Nevada Dispensary Association, said the LCB opinion is “a step in the right direction” for allowing Nevada‘s tourists to consume cannabis, who need an option “rather than a blanket statement that it’s just not allowed on the Strip.” He added that businesses and regulators alike “will be surprised at how many locals find value in these lounges.”

“Think about how many bars we have or wine tasting facilities and events,” he said in the report. “It’s crazy to think that marijuana is somehow different than that. It’s really not.”

Clark County Commission Chairman Steve Sisloak indicated that the county’s marijuana advisory panel has discussed permitting retail dispensaries to host lounges, at least on a pilot basis and that the panel would likely discuss the topic during their meeting next month, and the commission would take up the issue at their meeting next week.

“I do feel it is very important for the people who are coming from out of town, the tourists, which are a big contributor to the industry’s business, I’m told, to have a place where they can legally and safely consume the product,” he said in an interview with the Review-Journal.

Seagerblon said he was optimistic Las Vegas could see cannabis lounges in 2018.

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The Pennsylvania Capitol Building lit up with green lights to celebrate the House passage of the state's medical cannabis law in 2016.

Lawsuit Threatens to Delay MMJ Rollout in Pennsylvania

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A lawsuit by one of the Pennsylvania companies not chosen for a medical cannabis license could shut down the program before it’s implemented, the Philadelphia Inquirer reports. Keystone ReLeaf LLC is seeking an injunction against the state Department of Health, alleging that the licensing awards process was “arbitrary, capricious, and unreasonable.”

The company applied for one of 12 cultivation licenses and one of 27 dispensary licenses and was not chosen for either. According to the report, court documents indicate that the company missed the state application deadline by two days. The lawsuit was filed on behalf of Keystone by Seth Tipton, a partner in the law firm Florio, Perrucci, Steinhardt & Fader. Christian M. Perrucci is also a partner at the firm in addition to serving as a managing member of the rejected medical cannabis company. Further, the plaintiffs argue that the selection process was “infected by bias and favoritism” and that the Health Department panelists were kept secret and the state Office of Open Records has ruled that the panelists must be named.

In response to the lawsuit, state Sen. Daylin Leach, the prime sponsor of the state’s medical cannabis law, said if the suit moves forward it could results in the deaths of “hundreds” of citizens, citing a National Institute on Drug Abuse study with the RAND Corporation that found states with comprehensive and active medical cannabis programs see a 25 percent reduction in opioid-related deaths.

Steve Schain of Hoban Law Group, a cannabis-focused law firm in Colorado, told the Inquirer that while the suit raises “many factual points,” Keystone “has fallen short of establishing they’ve been irreparably harmed.”

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Lines of commercial-grade cannabis plants in pots inside of an indoor grow site.

Survey: Majority of Nevada County, California Growers Would Get Compliant if Allowed Transition Period

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According to a survey by the Nevada County (California) Cannabis Alliance, the majority of current county cannabis industry operators, both licensed and unlicensed, are interested in cultivation sites of at least 5,000 square feet and 95 percent of respondents said they would be able to comply with the state’s adult-use cannabis rules if given a three-year transition period.

If the transition period were reduced to just one year, the confidence level drops to 19 percent.

The survey found that 38 percent indicated they would seek a Type 2 and 2B outdoor or mixed light cultivation license for up to 10,000 square feet, while another 38 percent said they would be interested in Type 1 or Specialty Outdoor license that allows up to 5,000 square feet of total canopy. Twenty-four percent said they would pursue a Type 1C or Special Cottage license that would allow a 2,500-square-foot, mixed light grow.

Diana Gamzon, director of the county alliance, said the survey was an attempt to “get a snapshot of the cannabis community in order to inform the cannabis cultivation ordinance process.”

“Nevada County cannabis farmers seek to transition into legitimate businesses as state regulations come into effect. However, the absence of a local ordinance that allows them to seek state licensing has put them in a perilous situation,” Gamzon said in the press release published by the Union. “Many want to begin complying with local building codes, but fear that beginning that process would mean outing themselves to county officials and law enforcement.”

Seventy-seven percent of respondents said they would work toward compliance if allowed a transition period.

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Red and blue lights on top of a police Crown Victoria cruiser.

Budtender Reportedly Kidnapped from Dispensary Parking Lot in Washington

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Cameron Smith, a 46-year-old budtender who works at the Lucid Cannabis store in Cheney, Washington, was abducted from his place of work on Sunday afternoon at gunpoint, according to a Spokesman-Review report on the unfolding events.

Lucid co-owner Michael Schoefield said that before the kidnapping took place, a man and woman tried to enter the store but were turned away for not having valid identification — the male suspect said he had left his ID in Yakima, while the female suspect, who had an ID, was turned away for being only 18 years old. Schoefield said that after being turned away, the male suspect verbally berated store employees before eventually leaving.

Police say the kidnapping took place at about 12:45 pm on Sunday in Lucid’s parking lot. Surveillance footage shows Smith sitting in his car, a 2008 Acura SUV, on a break from work when the alleged kidnapper approaches the car, pulls out a gun, and fires two shots into the driver’s side window. The footage then shows the suspect getting into Smith’s car and driving away with Smith still inside of the vehicle.

The female suspect returned to a white Ford F-250 pickup truck (which was recently reported stolen) and also left the scene. Police say a third woman waiting inside of the truck may also have been involved. The truck drove away after the shots were fired.

Both cars went north out of Cheney on Washington State Route 904; Smith’s cell phone was last pinged just outside of Medical Lake.

This is a surveillance footage still of the alleged kidnapper, released by the Cheney Police Department in hopes of identifying him.

Cheney Police Captain Richard Beghtol said that investigators have received many calls from people who claim to know the suspect’s identity. While they are not currently releasing the suspects’ names, Beghtol said Monday morning that officers were “tracking down several leads right now.”

Smith is 46 years old and is a well-loved barber-turned-budtender from Toledo, Ohio.

“This is all just a bad place, bad time,” said Schoefield, Smith’s employer. “This is 100 percent a terrible tragedy.”

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