Business Coalition in Maine Pushing for Tighter Cannabis Regulations

9/21/2016

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A newly-formed coalition of Maine business leaders is advocating for more stringent regulations on the state’s cannabis industry ahead of the statewide vote to legalize the drug in November, the Portland Press Herald reports. However, the group, Maine Professionals for Regulating Marijuana, has no plans on taking a stand regarding Question 1.

“Some people are for Question 1 and some people are opposed to Question 1,” Toby McGrath, spokesman for Maine Professionals for Regulating Marijuana said in the report. “But even if Question 1 doesn’t pass, this industry is here and needs to have more robust regulation and enforcement.”   

Officially, the coalition’s official platform advocates for a “quality, safe and transparent marketplace” for cannabis. Members come from a variety of business sectors, including realtors, accountants, lawyers, financial institutions, and elected officials. Pete Dufour, a Portland accountant and coalition member, said he joined the group because he has assisted businesses in navigating the regulations of the state’s medical marijuana program and hopes the organization might help connect industry operators with professionals that can steer them through the complex frameworks.

“There seems to be a big need out there for accountants and other professionals to work with these people,” Dufour said. “The laws are complex and they are in a state of flux, so they do need help navigating the process.”

Regardless of the outcome of the initiative vote, the organization is pushing for testing of THC content, pesticides and other potentially harmful substances, mandatory labeling standards, childproof packaging, and an advertising ban even if Maine remains a medical-only state.

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Nashville Decriminalizes Cannabis Possession, State Lawmaker Threatens to Revoke Funds

9/21/2016

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A Tennessee Republican State Representative is considering filing a bill next session that would halt highway funds to cities that do not enforce state marijuana laws, according to a report from the Tennessean. The move comes as Nashville became the first city in the state to decriminalize possession of small amounts of cannabis and Memphis considers its own reforms.

Rep. William Lamberth argues that having two possession laws — one local and one state — creates “two standards of justice” and the penalty is at the “whim of an officer.” Further, he argues, that it’s not decriminalization at all because they are maintaining the state statutes, and that the measures look to him “like a political stunt to curry favor with certain constituencies.”

“That’s not a bill that I would want to file, but it’s a bill that I’m certainly willing to file if Nashville and Memphis continue down this extraordinarily reckless and unjust path,” he said in the report.

Nashville’s Metro Council approved the new rules 35-3, which allows officers to hand down a $50 fine and community service if  an individual is caught with less than an ounce of cannabis. Under current law, persons could be charged with a misdemeanor and face up to one year in jail and a $2,500 fine.

In a WKRN report, Nashville Councilman Steve Glover echoed the sentiments of Lamberth — “you get pulled over by the wrong officer, you can still get handcuffed, you can still go to jail.”

Last year, Rep. Harold Love and Sen. Jeff Yarbro introduced legislation that would have decriminalized up to a half ounce of marijuana statewide, but that bill stalled in the legislature.     

End

Missouri Capitol building in Jefferson City, Missouri.

Missouri MMJ Ballot Campaign Falls 23 Signatures Short

9/21/2016

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The campaign to put a medical marijuana initiative on Missouri ballots in November fell just 23 signatures short, the Riverfront Times reports. The final ruling by Cole County Circuit Court Judge Daniel Green upholds the decision by election authorities to invalidate hundreds of petition signatures that were collected on the wrong county form.

New Approach Missouri, the group behind the measure, submitted about 285,000 signatures by the May deadline, however Secretary of State Jason Kander threw out more than 10,000 of the signatures collected in the state’s 2nd Congressional District. Kander’s decision left the organization 2,242 signatures short of the 32,337 goal in the district, and sparked a lawsuit against Kander by the campaign.

In the suit, the Cole County Circuit Court ruled that 2,219 of the 2,242 signatures in question were, in fact, valid — but the campaign was still 23 votes short.

Lee Winters, the campaign’s president, says that the group has “several hundred” more signatures that show they met the threshold, but it’s unlikely they will be able to submit them into evidence because the court’s evidentiary deadline has passed. New Approach Missouri would also have to convince a judge that the state statute which invalidates signatures on the wrong county form is unconstitutional.

In addition to pushback from Kander, and Assistant District Attorney John Hirth, a group of prosecutors have also filed an affidavit to block the measure from ballots even if the advocates can overcome its current legal hurdles.

Winters, though, believes 2018 might present a better opportunity for medical marijuana in Missouri. Following the court’s decision, Winters apologized to the campaign’s supporters and thanked his team in a Facebook post.

“It is with an extremely heavy heart that I tell you all that our day in court has come and gone. Due to the judge’s ruling that signatures collected on the wrong county petition pages would not be accepted as valid we were found to be short of the minimum required number of signatures,” he wrote. “We are all still here and 2018 is right around the corner. This fight isn’t yet done, not by a long shot.”

End

An empty university classroom, red desks.

Canadian University Rolls Out MMJ Class; Other Colleges Considering Offerings

9/21/2016

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Some higher education institutes in Canada are considering adding cannabis business-centric course offerings, with at least one adopting an online course, according to a report from Maclean’s.

Kwantlen Polytechnic University, in British Columbia, currently offers a 14-week, online, continuing education program taught by industry professionals. The class, Introduction to Professional Management of Medical Marijuana for Medical Purposes in Canada, has two parts. Part one is called Plant Production & Facility Management, which teaches students the biology of the plant, and the rules for operating in Canada’s industry. The second part, Marketing Sales & Drug Development, is designed to help students learn the role of health care professionals in the industry and the drug development process, in addition to marketing and branding strategies.

“It’s one thing to grow cannabis in your basement and a completely different world when you’re growing it for commercial purposes under the supervision of Health Canada,” Deepak Anand, director of the Canadian National Medical Marijuana Association, who to co-wrote the curriculum and will teach the fall sections. “Licensees were having a hard time finding people who had knowledge of the law and the regulations. They had to take in people who were completely green and spend months training them.”

According to Tegan Adams, who pitched the course to the university, “a large Ontario” college is interested in a program, but she declined to say which one. She said she has previously consulted with the University of British Columbia for a medical marijuana research program.

Universities in Ottawa, London, and Toronto, Ontario have incorporated medical marijuana into some of their pharmacy, law, and biology courses to varying degrees, and are reportedly considering expanding their course offerings, but have not yet developed any dedicated medical cannabis courses.     

End

Skyline view of Portland, Oregon, with snow-capped Mt. Hood on the eastern horizon.

Majority of Oregonians Continue to Support Legal Cannabis, Poll Shows

9/20/2016

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A majority of Oregon voters believe that the legalization law approved in 2014 has so far benefited the state, according to a summary by the Oregonian‘s Noelle Crombie.

Polling data from DHM Research — an independent and non-partisan opinion research firm with a Portland-based office — suggest that 61 percent of Oregon voters believe the legalization of recreational cannabis has positively impacted the state. Only 54 percent of Oregon voters actually voted in favor of the legalization law, meaning that somewhere down the line people who were at that time either on the fence or anti-legalization have shifted their views on the matter.

“Big picture, I think Oregonians are relatively satisfied,” said John Horvick, vice president and political director for DHM Research. “I don’t think a lot of minds have changed, but the general acceptance of marijuana continues apace. There hasn’t been a backlash.”

The poll also demonstrated that the demographics of cannabis support have not changed considerrably, though the overall amount of support is still growing. Democrats and younger voters remain more likely to view cannabis favorably, while Republicans and older voters are more likely to disapprove. Likewise, urban communities expressed higher satisfaction rates than rural communities.

Pollsters also asked about voters’ dispositions toward local bans on the recreational cannabis industry and found that most voters in the state (60 percent) do not approve of such ordinances. This number also fluctuated heavily between urban and rural voters: in the Portland area, 67 percent oppose the bans; outside of Portland, only 54 percent are opposed.

Additionally, 69 percent of voters statewide support installing a local sales tax on cannabis sales. Each locality, however, will have to put that issue to voters before it can impose such a tax — more than 100 Oregon communities are already planning to do so in the coming election.

There are currently four states, plus the District of Columbia, that have legalized adult-use recreational cannabis. This November, nine states will be voting on some form of legalization: five for recreational and four for medical legalization.

End

A large cannabis leaf, seen inside of an indoor commercial grow operation in Washington.

Montana Patient Says MMJ Law Violates HIPPA

9/20/2016

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A Montana medical marijuana caregiver says the state’s medical cannabis law violates federal health care privacy regulations because it forces people registered in the program to get permission from their landlord to grow cannabis if they rent their home, according to a report by the Great Falls Tribune.

Kenneth “Skip” Kildore says forcing patients and caregivers to reveal some of their medical information to a third party violates the Health Insurance Portability and Accountability act of 1996 (HIPPA) and that landlords are under no obligation to keep that information private.

“Further, because of the wildly politicized climate around this issue, a lot of people, landlords included, are strongly prejudiced against medical marijuana,” he said in the report.

State officials argue that because medical marijuana is not recognized as medicine by the federal government it does not fall under the privacy protections of HIPPA.

Kildore’s concerns come as new restrictions take hold on the state’s medical marijuana program, which has left 93 percent of the 12,730 registered patients without a provider. Under the new rules, individuals classified “with no provider” are considered their own provider, which allows them to grow their own cannabis. However, if a patient rents the home that would serve as the grow site they would need to get written permission from their landlord prior to starting any cultivation.

Kildore, who suffers from post-traumatic stress disorder, disagrees that cannabis should not be considered medicine and that patients have the right to keep their medical information private.

“Something that helps is a medicine,” he said. “It’s made a world of difference, not a perfect medicine. When I use it I cannot go out and drive. But it really has helped. I’ve become a lot mellower.”

In November, Montanans will vote on rolling back the changes to the medical marijuana program enacted by the legislature, which took effect on Aug. 31.

End

Officials Send Cease-and-Desist Letters to Nine CO Cannabis Clubs

9/20/2016

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Nine cannabis clubs in Colorado Springs have received cease-and-desist letters from the City Clerk’s Office despite having no issues with neighbors or law enforcement, according to the Colorado Springs Gazette report. Many of the clubs have been in business since 2012 — after Amendment 64 passed — but were banned by the City Council in March.

Although recreational sales are banned in the city, the clubs provided products using a “reimbursement model” by which cannabis was traded for memberships or members could sign affidavits saying the club was growing the customer’s six marijuana plants allowed under the law for them. The March measure outlawed all trade and transfer of marijuana, but allowed clubs that existed before Sept. 23, 2015 eight years to phase out the businesses — provided that the owner submitted a $200 fee and consumption club application by April 29, and obtained a one-year renewable license for $90 plus registration fees.

Just five clubs applied by the deadline, but only one has been approved for the annual licensing which can be renewed for the eight-year term. Two other applications are being considered, and two more were denied. The two clubs denied applications, along with seven other clubs that did not apply to licenses, were the clubs ordered to close. On Sept. 9, El Paso County District Court granted the city a temporary restraining order against the clubs, which prompted the letters.

Jason Warf, executive director of the Southern Colorado Cannabis Council, said the clubs provide a “safe, private place” for tourists to use legal cannabis.

“This comes after years of these clubs operating without incident. While it has taken some time to get it right, we now have legislation (permitting cannabis clubs) set to be introduced at the state level in January,” Warf said in the report. “Our goal would be that the City of Colorado Springs follow this lead and enact regulations that coincide with the efforts at the state level.”

Colorado Springs Police spokesman Lt. Howard Black confirmed that the businesses have been good neighbors in the community and no violent crimes have occurred on any of the premises.

“There’s been nothing we’ve been engaged with,” he said.

Some of the clubs are scheduled to appear in court on Wednesday, where they plan on contesting the constitutionality of the ban.     

End

Company Denied Maryland MMJ License Sues Commission

9/20/2016

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One of the two companies denied a medical marijuana grower license in Maryland is suing the state Medical Cannabis Commission, alleging that the body broke its own rules during the license granting process last month, the Baltimore Sun reports. Green Thumb Industries Maryland is seeking a court injunction to reverse the decision, which will likely cause further delays in the already embattled program.

The company argues that it was ranked higher by Towson University’s Regional Economic Institute, the analysts charged with assessing the applications, but that two companies ranked lower received licenses instead. Buddy Robshaw, MMCC commissioner, said the law requires geographic diversity and the body acted within the confines of the law.

In the suit, filed yesterday in Baltimore Circuit Court, the company calls the commission’s decision-making process “illogical, opaque and fatally flawed,” arguing that the contracts are worth “tens of millions of dollars” and the loss of the contract would be “devastating” to the company.

“This is a case about a state commission setting rules and then inexplicably failing to follow them,” Philip M. Andrews, who is representing GTI in the suit, said in the report.

The second company, Maryland Cultivation and Processing LLC, also ranked in the top 15 contenders for licenses but have not yet taken any action against the board. Edwin Weidenfeld, a company partner, indicated that they are considering joining GTI’s suit or filing their own.

“I want to give them a chance to clean up their own mess because I have concerns that a lawsuit will end up delaying this,” he said. “But better it be delayed than corrupted.”

Separate from the suit, the program faces another possible setback as African-American lawmakers are planning to introduce emergency legislation to address the lack of cultivation licenses awarded to minority-owned businesses, to which the commission did not issue any of the 15 available licenses.

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Irish Cannabis Medicine Research Firm Secures $550,000 in Investments

9/20/2016

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Ireland’s GreenLight Medicines, a pharmaceutical start-up seeking to develop “breakthrough medicines” using cannabis extracts, has secured more than $550,000 in funding from a consortium of private investors, according to an Irish Times report. The cash infusion follows a seed investment worth more than $110,000, and commitments of nearly $140 million in CBD hemp oil from Isodiol to assist the firm in its research. The agreement with the Swiss-American firm includes a five-year research contract which will allow GreenLight to further validate the CBD medicines developed by Isodiol in the US.   

Dr. James Linden, GreenLight’s founder and chief executive, said the company has spent the last two years developing research programs at Irish universities targeted at developing CBD therapies for a variety of illnesses; including, glaucoma, arthritis, multiple sclerosis, and cancer.

“GreenLight’s focus is on conducting research that will be the catalyst in bringing these life-changing medicines to fruition, that have the potential to help thousands of people manage their conditions,” he said in the report.

Chief Financial Officer Patrick Deasy said the investments are key to conducting “crucial” clinical trials, which cost about $7 million to $10 million per drug.

According to Deasy, GreenLight will be conducting a third call for investment funding early next year.

End

Sonoma County Growers Alliance to Host 2nd Annual Cultivating Community Event on Sept. 30

9/20/2016

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Santa Rosa, CA

WHO: The Sonoma County Growers Alliance

WHAT: 2nd Annual Cultivating Community Event

The event will feature keynote speakers and panelists as we review the past 18 months that have created a regulated cannabis industry, and help prepare Sonoma County for the next 18 months of implementation.

Job Fair, local vendors, educational booths, catered organic lunch, and an outdoor 215 zone for medical patients.

Ticket sales are limited to 300 attendees. This event is appropriate for representatives across all industries including service providers, licensed contractors, manufacturers, cultivators, distributors, retailers, patients and state and local agency employees.

Confirmed keynote speakers include:

  • Fiona Ma Chairwoman, California Board of Equalization (District 2)
  • Susan Gorin, Sonoma County Board of Supervisors

Confirmed panelists include:

  • Efren Carrillo, 5th District Supervisor
  • Tony Linegar, Sonoma County Ag Commissioner
  • Gary Wysocky, Santa Rosa Councilman
  • David Guhin , Santa Rosa Director of Planning & Economic Development
  • William Gould, ALRB Director  
  • Amber Morris, California Department Food & Ag
  • Hezekiah Allen, California Growers Association
  • Jamie Kerr, Founder of 530 Edibles, Shasta Planning Commissioner
  • Melissa Sanchez, Harvest Law
  • Hank Levy, CPA, Owner of Henry Levy & Co

Tickets are $80 in advance and $100 at the door.  For more information: http://cultivatingcommunity.bpt.me

WHEN: September 30, 2016 from 10am – 6pm

WHERE: Hyatt Vineyard Creek in Santa Rosa, CA.

WHY: The Sonoma County Growers Alliance has made tremendous headway since its inception in 2015. In just one year, we have:

  • Created informative twice-monthly workshops to educate both local operators and regulators on the best management practices for the cannabis industry.
  • Produced monthly social mixers to engage local businesses and stimulate the networking within our local economy.
  • Engaged with local and state representatives to help guide and implement fair policy.
  • Created working relationships with organizations statewide to facilitate an action network.

Craft cultivators are the most vital contributors to Sonoma’s cannabis economy and deserve the creation of a fair market to ensure their successful transition into a regulated marketplace. 

Sonoma County Growers Alliance is answering this call to provide a pathway for thousands of cultivators to participate in the new regulatory framework being created by local and state government.

Contact: Alexa Barone – info@scgalliance.com

cultivatingcommunityimage

End

Most Montana MMJ Patients Have No Provider

9/19/2016

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Under Montana’s newly implemented medical marijuana program, 93 percent of the 12,730 registered patients in the state are now listed as “patients with no provider,” leaving them without access to their medicine, the Montana Standard reports. The law, which took effect on Aug. 31, allows the 457 medical marijuana providers in the state to serve just three patients each.

Jon Ebelt, spokesman for the Department of Health and Human Services, said that patients classified “with no provider” are considered their own provider, which allows them to grow their own cannabis. However Chris Lindsey, senior legislative counsel for the Marijuana Policy Project, said growing cannabis “is no small step for anyone,” and it’s unrealistic for the state to think that many patients can buy growing equipment, obtain seeds, learn to grow and get permission from their landlord, if necessary, to start a home grow.

“There is a perception that growing at home is like growing house plants, but it is actually very involved, and the cost savings compared with purchasing can be offset by things like security, demanding schedule, and the possible presence of young family members,” Lindsey said in the report.

Lindsay suggests the regulations will force patients back into the informal market, or make them reliant on pharmaceuticals, at least temporarily as voters will decide on whether to roll back the changes in November.

End

Cannabis Growing Container Company Execs Charged with Fraud

9/19/2016

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The Securities and Exchange Commission has filed fraud charges against individuals of Fusion Pharm, a company that makes containers for growing cannabis, over a scheme involving false financial filings and illegal stock sales, according to a press release from the oversight body.

The investigation found that CEO Scott Dittman and his brother-in-law William Sears hired Cliffe Bodden to help create fraudulent corporate documents that enabled the company to issue common stock to three other companies controlled by Sears, who sold the restricted stock into the market — hiding the companies’ link to Fusion Pharm — ultimately making $12.2 million in profit. Sears transferred some of the funds back to Fusion Pharm who falsely reported the income as revenue from PharmPod sales, and issued financial statements that mislead investors due to the fraudulent reporting.

“Sears and Dittman misled investors by recording and trumpeting revenues for purported sales of PharmPods when they were really just round-tripping money from illegal stock sales by hidden affiliates,” Julie K. Lutz, director of the SEC’s Denver Regional Office, said in the release.

The trio agreed to settle with the SEC, who will set monetary sanctions against Fusion Pharm and Sears’ three other companies. All three men are also barred from participating in any future penny stock offerings. Sears and Dittman are permanently banned from holding an office or director position from any company. Dittman is no longer allowed to appear or practice before the SEC as an accountant.

Sears and Dittman have also been charged with crimes related to the fraud by the U.S. Attorney’s Office for the District of Colorado.

End

Casino Mogul Adelson Makes Huge Donation to Anti-MMJ PAC

9/19/2016

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Sheldon Adelson, the CEO of Las Vegas Sands Corp., has donated $1 million to the Drug Free Florida Committee, a political action committee trying to defeat Florida’s medical marijuana ballot initiative, according to a report from the Associated Press. Two years ago, the billionaire casino mogul donated $5.5 million to Drug Free Florida to defeat a similar amendment.

A constitutional amendment in Florida requires 60 percent of the vote to pass. In 2014 a similar amendment garnered 57.6 percent of the vote.

Adelson is a well-known prohibitionist who regularly makes huge donations to the Republican Party. His second, and current, wife, Miriam Ochshorn, founded a substance abuse center and research clinic at Sourasky Medical Center in Tel Aviv, Israel, her native country.

According to a report from the Chicago Sun Times, Adelson forced the editorial board of the Las Vegas Review-Journal to drop its pro-cannabis stance after purchasing the paper earlier this year ahead of the state’s recreational-use vote in November.

In July, Mel Sembler, a St. Petersburg real estate developer and Adelson ally, donated $500,000 to the committee.

Florida is one of four states voting on medical cannabis initiatives in the general election. Five others will vote on recreational legalization measures.

End

Massachusetts Mayor Vetoes a Public-Use Ban He Recommended

9/19/2016

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Amesbury, Massachusetts Mayor Ken Gray has vetoed a public-use of cannabis ban — one he recommended to the city council — citing concerns that the ordinance did not consider medical marijuana use, according to a report from the Eagle-Tribune. The ordinance would have levied a $200 fine on anyone found using cannabis in public.

The veto comes following a public outcry during a City Council meeting where citizens expressed concerns that the ordinance could negatively affect patients using medical cannabis. The measure was recommended to Gray by police Chief Kevin Ouellet, who “didn’t have any objections” to the mayor’s veto because another version is still likely to pass after some changes. In a letter to City Clerk Bonnijo Kitchin, Gray indicated that he wasn’t vetoing the ordinance because he is opposed to its intent, but rather “to ensure without doubt that we do not inadvertently implement an enforcement mechanism that unfairly impacts patients who use these substances as necessary forms of medicine.”

“The only way that I have of slowing this thing down is to veto it, otherwise it goes into effect,” Gray said in the report. “We are not really in a huge hurry to get this done. I don’t see any reason why we have to rush to get it done. It has already taken several months, so let’s take a pause to relook at it and make sure that we are doing this properly.”     

The City Council has 21 days to override the veto or consider the ordinance rejected.

End

Large indoor cannabis plant's cola bud.

Why Cannabis Companies Can’t Afford to Ignore Data and Analytics

9/16/2016

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Legalization — and the infrastructure that follows it — enables the cannabis industry to embrace business intelligence that is already standard in other industries. This is the story so far for states that have legalized, and trends show that national legalization and the mainstream normalization of cannabis are quickly becoming a very real possibility.

With active marketplaces already up (or nearly underway) in Colorado, Washington, Oregon, and Alaska — as well as an upcoming adult-use vote in California and several other states this November — the cannabis industry is experiencing massive upheaval on its way to becoming a mainstream industry. Therefore, it must (and will) become as cutting-edge as any other if it is to carve out a niche for itself in the modern economy.

To that end, an entire subindustry of ancillary businesses is springing up. These are companies that provide assistance to cannabis market participants with regulatory compliance, general business practices, and data-based decision making. Many firms collect and analyze data on the new industry and provide this information to clients on a proprietary basis. This data allows industry participants to capture information efficiencies which are usually unavailable in illicit or medical markets. Often, companies providing this data are operated by individuals with experience in other, more mainstream markets.

Cannabis Benchmarks is one such company. Founded in early 2015 by CEO Jonathan Rubin, Cannabis Benchmarks is owned by New Leaf Data Services LLC and provides wholesale price information to those on the cultivation side of the industry. “We aim to be the Kelly Blue Book of wholesale cannabis,” Rubin said.

Although the company is performing well and expects to expand soon, he often speaks of his company in futuristic terms, with an eye to the continuing development of the cannabis industry. For example, the firm’s Professional level service — offered in partnership with GlobalView — is geared toward international commodity traders in the cannabis futures market (which doesn’t exist yet). Those that purchase the service will gain access to historical cannabis price data in a dashboard similar to Bloomberg Terminal, and can perform various analyses using data on climate, macroeconomic trends, utility prices, and more. Rubin hopes to establish a firm first-mover advantage with those interested in cannabis futures information before such a market even develops.

There are many other companies that supply similar or related ancillary services to the cannabis industry, including New Frontier, The ArcView Group, BDS Analytics, and a host of consulting firms which provide clients with custom consulting services.

New Frontier and ArcView are partners on the notable report “The State of Legal Marijuana Markets” — now in its 4th edition — and ArcView is a giant in industry fundraising and other activities. Their report on the potential for the California adult-use market has received extensive mainstream coverage.  New Frontier has also published reports on Oregon, California, Nevada, global markets, energy efficiency in the industry, cannabis investing, and cultivator revenues. This summer, New Frontier launched Equio, an online data platform that allows cannabis retailers to track inventory and sales, compare sales to regional averages, and keep up with trends in consumer strain preferences.

BDS Analytics offers a similar service with its GreenEdge platform (albeit with access to more transaction data) which is now free of cost for all members of the National Cannabis Industry Association. GreenEdge offers retailers detailed information about market trends, broken down into many categories of products, based on over 30 million transactions. BDS also recently launched a consumer research division. Most analytics firms currently are cultivator-oriented, but consumer research will become increasingly important and common as the industry develops and moves toward a brand-based market.

It is important to note that all of this is more or less standard in other industries. “What we’re doing already exists in every other industry,” says Roy Bingham, CEO of BDS Analytics. Legalization measures in other states will only feed into the industry’s upward cycle.

Already, many individuals from traditional industries are shifting to cannabis as a viable career alternative. Rubin and Bingham both have extensive experience in traditional industries. Rubin got into the cannabis analytics industry after he was unable to evaluate a company’s investment proforma due to a lack of wholesale price information. Bingham, with experience in mergers and acquisitions, is more direct about how he got involved: “Opportunity knocks.”

California will likely legalize adult-use cannabis this fall, based on polling that shows a majority of voters in favor of Proposition 64. If it does, a gigantic consumer market will open up and the state will become a keystone in the national and international fight to reform cannabis laws. Capital and labor will flow into the state, and there will be many more companies, investors, and traders in desperate need of business intelligence.

The only way is up.

End

President of Mexico Keeping Tabs on California Legalization Bid

9/16/2016

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Mexican President Enrique Peña Nieto is “paying close attention” to California’s recreational-use vote this November, according to California state Senator Ben Allen, who met with the head-of-state yesterday. If the state passes Proposition 64, it would put pressure on Mexican lawmakers to reform the country’s cannabis laws, according to a Reuters report.

The meeting with state legislators was focused on trade and border issues, but lawmakers who attended said the president brought up the initiative without getting into details and the topic was not mentioned in the presidency’s report about the meeting.

In April, Peña Nieto introduced legislation that would allow Mexicans to possess up to one ounce of cannabis for personal use and has said the U.S. and Mexico should not diverge on marijuana policies. The decriminalization bill has stalled in the country’s Congress.

The bill, and the interest in California’s vote by Peña Nieto, is proof he has modified his conservative views on cannabis since his 2012 election. The country, like many South American nations, is constantly battling drug cartels, and legalization is considered a potential tool for pushing cartels out of the marijuana trade.

Legal cannabis is already available in the South American nation of Uruguay and Colombia legalized marijuana for medical and scientific purposes in December.

End

Cannabis leaf under the glow of indoor LED grow lights.

Washington State Officials Expand Testing Program

9/16/2016

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Washington’s Liquor and Cannabis Board is going to begin randomly testing cannabis products for banned pesticides, the Associated Press reports. The agency is paying the state Department of Agriculture more than $1 million to hire two full-time employees and buy new equipment to conduct the tests.

According to a Seattle Times report, Washington will become the first state to mandate randomized testing of cannabis products.

Rick Garza, the LCB director, said the move “will send a strong message” to producers using illegal pesticides, who will be subjected to “significant penalties” including license revocation if caught.

“Testing for pesticides is a complex and costly process,” Garza said in a statement. “Labs need specialized equipment and highly trained staff to carry out the tests. This agreement will satisfy those obstacles.”

Since the first legal cannabis cultivation licenses were awarded in 2014, the board has conducted 45 investigations into the use of pesticides outlawed under the law – but only after receiving complaints from the public about alleged misuse. The new equipment will allow 75 samples to be tested per month for more than 100 unapproved pesticides. According to John Scott, pesticides program section head at the Department of Agriculture; Colorado has conducted more than 100 investigations into pesticide use this year, finding that about 40 to 45 percent were not in compliance with the law.

Agriculture Department spokesman Hector Castro said growers using outlawed pesticides are “on notice.”

“This should be a real game-changer for the industry in terms of public safety,” he said.

End

Study: Fatal Accidents Less Likely to Involve Opiate Use in MMJ States

9/16/2016

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A Columbia University Mailman School of Public Health study has found that drivers in states with medical marijuana programs were less likely to test positive for opioids after fatal car accidents, according to a Chicago Tribune report.

“In states with medical marijuana laws, fewer individuals are using opioids,” the authors concluded in the study published in the American Journal of Public Health, which analyzed federal crash data in 18 states from 1999 to 2013.

June H. Kim, the study’s lead author, said the results of the study are not unexpected.

“We would expect the adverse consequences of opioid use to decrease over time in states where medical marijuana use is legal, as individuals substitute marijuana for opioids in the treatment of severe or chronic pain,” Kim said in the report.

In the analysis, the greatest reduction of opioid involvement in fatal car accidents was among drivers aged 21 to 40, who are most likely to use medical marijuana in state’s where it is available. The study adds to a growing body of academic work suggesting medical marijuana is an effective alternative to combatting opioid use. A paper published in Health Affairs found that physicians in legal states write 1,826 fewer doses of opioid-based painkiller per year.

End

Colombia Farmer Collective Hoping for Cannabis Cultivation License

9/16/2016

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A group of farmers in Corinto, Colombia has started a collective aiming to become the prime supplier for the country’s new legal cannabis market, according to a Guardian report. Under the law passed early this year, marijuana is legal for medical and research purposes in Colombia.

Currently, police estimate that 100 hectares of land in Corinto is being used for illegal cultivation, representing about 50 percent of all illegal crops in Colombia. The collective, Caucannabis, hopes to bring some of that product to the legal industry.

Betania Rodriguez, a cooperative member, said that marijuana and coca are about the only options farmers in the region have to make a living. The government has so far issued licenses to three companies, but those licenses only currently allow for the extraction of oils and resins from the plants, so — under the current law — these rural farms growing marijuana are still committing a crime.

“It’s illegal but it’s all we’ve got,” Rodriguez said in the report.

The licensed companies will be able to cultivate plants eventually, however, and members of Caucannabis say they know more than the companies about growing the plant. If the industry is going to have any real impact in the nation, traditional marijuana growers should supply the cannabis, the farmers argue. However, many of these traditional growers have criminal records due to their role in the illicit trade, and the law says that no one with a record can be issued a license to legally grow.

Hector Fabio Sanchez, the leader of the co-op, says those operating illegally are “eager” to bring their businesses into the formal market.

“But things need to move quickly,” he said. “If it takes two years to get going people will just say, ‘Oh, it was all a lie.’”

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Michigan Legislature Passes MMJ Reform Package

9/15/2016

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Michigan’s House of Representatives has approved a package of reform bills which will license, tax, and regulate the cultivation, transport, processing, testing and sale of medical cannabis in the state, the Detroit Free Press reports. The five-bill package illuminates an industry that has operated in a gray market since voters legalized medical cannabis use in 2008.

Under the reforms, the state will issue licenses to dispensaries, growers, processors, secure transporters, and testing facilities. The initial and annual application fees for those services will be set by a newly-created medical marijuana licensing board. Dispensary sales will be taxed 3 percent.

Robin Schneider, legislative policy director for the National Patients’ Rights Association, called the plan “common-sense regulatory framework” that will ensure safe patient access to all forms of medical marijuana. However, dispensary owner Jamie Lowell said the current structure wasn’t needed in the county in which he operates and will likely raise the prices for many of the state’s 210,000 patients.

“I’m perplexed about why a system that has been in place in this state for seven years, right in the backyards of some of these legislators and functioning just fine, is being replaced by an overly restrictive, costly new system,” he said in the report.

The package has been sent to Gov. Rick Snyder, who is expected to sign it into law.

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Maryland Applicants Threatening Legal Action Over MMJ License Denials

9/15/2016

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Two companies that were passed over by the Maryland Medical Cannabis Commission are alleging unfair treatment and threatening legal action over their application denial, according to a Washington Post report. The row is the latest setback in the rollout of the medical marijuana program — earlier this week, the Legislative Black Caucus indicated they were planning emergency legislation to address the lack of minority-owned business approved by the commission.

The companies, Green Thumb Industries Maryland and Maryland Cultivation and Processing, claim that the board passed them over due to “geographic diversity” despite having higher scores than the companies actually granted the licenses. Buddy Robshaw, MMCC commissioner, said the law calls for such diversity and they were operating within the confines of that law.

“We wanted everybody who would substantially look at this to come back and say, ‘You know what, the commission did create geographic diversity when we licensed marijuana,’” he said in the report.

Pete Kadens, GTI chief executive, said he was ranked in the top 15 — the total number of allowable licenses under the law — and he was passed over for Holistic Industries and Shore Natural Rx because of their location in Worcester County.

“We were dismayed by the outcome, and believe the commission’s decision and process were improper and fundamentally flawed,” he said.

Cultivation and Processing Partner Ed Weidenfeld said applicants were promised the licenses would be awarded to “the most suitable applicants.”

Both companies are pushing for the legislature to move the cap on grower’s licenses from 15 to 20, but have asked the commission to preserve documents related to the licensing decision — a preliminary step for a lawsuit.       

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Colorado’s Cannabis Market Reaches New Heights

9/15/2016

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Colorado has set a new cannabis sales record in July grossing about $122.7 million in both medical and recreational sales, according to a Washington Times report. The state set its last sales record in April with $117.4 million in sales.  

Dispensaries saw $83.8 million in recreational sales and $38.9 million in medical sales, representing an overall 27 percent increase over July 2015 sales. So far, from Jan. 1 to the end of July, $720.4 million in legal cannabis has been sold in the state, which has collected roughly $105.8 million in taxes from the sector.

Adam Orens, founding partner of the Marijuana Policy Group, the sales spike could be the result of a June bill that allows out-of-state residents to purchase cannabis in Colorado, along with the summer weather. He expects the market to level off.

“Every year, we’ve had more sales than the year before; at the same time, you’ve seen prices in general declining,” he said in the report. “This rapid growth represents people coming from the black market into the regulated market, and that growth is going to be fast, but it’s going to be finite.”

Last month, the Washington State Liquor and Cannabis Board recorded its highest dispensary sales to date, topping $130 million.

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Freshly cut indoor cannabis plant. waiting to be picked apart for harvest.

Advocates in Nebraska Already Working Toward 2018 Initiatives

9/15/2016

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Two advocate groups in Nebraska have already filed petitions and started collecting signatures for potential ballot initiatives in 2018, the Lincoln Journal Star reports. One measure would eliminate all penalties for possession of small amounts of cannabis, while another aims to legalize marijuana for recreational use. Both have been filed with the Secretary of State’s Office.

The petition by Mark Elworth Jr., the state chairman for Legal Marijuana Now political party, would eliminate possession penalties for people caught with less than an ounce of cannabis while keeping the current laws for drug dealers. Marijuana is technically decriminalized in the state. Under Elworth’s plan, however, the current penalties — a $300 fine and possible jail time — would be abolished.

Nebraska Attorney General Dough Peterson, who led a lawsuit against Colorado over legalization, said he does not support the petition claiming ‘legalizing’ an ounce of marijuana would “send the wrong message” that the drug is harmless, and puts the youth at risk.

The details of the amendment proposal were not available; however, advocates in May backed off of a plan to petition for medical marijuana this election. According to the report, supporters of the plan are starting early so they have plenty of time to collect signatures.

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Kentucky Ag Commissioner Objects to New USDA Hemp Rules

9/14/2016

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Kentucky’s Agriculture Commissioner has sent a letter to the USDA outlining his objections to the body’s new ‘Statement of Principles’ regarding the industrial hemp sector, local NPR station WKMS reports. He says the new rules contradict the original intent of the 2014 measure passed by Congress and “could hinder industrial hemp’s economic potential” in the state which currently incorporates more than 2,000 acres of the plant.

The 2014 Farm Bill did not remove hemp from the controlled substances list, but it allows states to grow hemp for research purposes. Kentucky launched its pilot program that year.

Ryan Quarles said the rules set forth by the feds name only “fiber and seed” as the economically viable parts of the plant, and permits their use only for industrial applications. Quarles argues that the ‘industrial application’ provision would not allow hemp to be used as a food or drug ingredient or for artistic purposes. He says that more than half of Kentucky’s hemp is used to harvest CBD, which is often used in medical applications, and comes from neither the fiber nor seed.

Another section, Quarles says, broadens the definition for measuring THC and omits the ‘delta-9’ qualifier from the definition which could render “most if not all” of the industrial hemp crops in the pilot program ineligible for study because all hemp has some THC. Under USDA regulations, plants must contain less than 0.3 percent THC to be considered hemp. He says the change could create confusion for farmers and processors if it is not rewritten.  

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