News Nuggets – November 2019

Bay Area

Sonoma County Leaders Approve Controversial Farm

The Sonoma County Board of Supervisors approved a five-year cultivation permit for Petaluma Hills Farm on Sept. 25, despite heavy push-back from the local community. Petaluma Hills Farm will cultivate about an acre of cannabis on a former chicken ranch in a quiet community. The other 37 acres of the property will be used for non-cannabis purposes such as cattle grazing. “It’s agriculture in my mind,” said Supervisor James Gore, “No matter how we classify it.” For the past three years, neighbors have been trying to stop the farm from growing cannabis including serving the farm a lawsuit. Community members held rallies to stop the spread of cannabis in the county. The farm is located on Purvine Road, which led protesters to hold up signs that say, “No Pot on Purvine.” But in the end, county supervisors were more interested in the financial opportunities cannabis could bring to the county.

Gov. Gavin Newsom Signs School Medical Cannabis Bill

On Oct. 16, California Gov. Gavin Newsom signed Senate Bill 223, or Jojo’s Act, which allows for students in grades K-12 to bring approved medical cannabis onto school campuses. The move signals a dramatic shift from the governor’s predecessor. Last year, former Gov. Jerry Brown vetoed a very similar bill. State Sen. Jerry Hill named the bill after Jojo Garcia, a young student with severe epilepsy. “By signing Jojo’s Act, Newsom has lifted barriers for students with severe medical disabilities for whom medicinal cannabis is the only medication that works,” said Hill. “We need to be clear about what SB-223 allows and how important it is for families who have had to remove their children from campus, take them 1,000 feet away, give them their medicinal cannabis and then return them to school again.” The bill excludes smoking or vaping medical cannabis products on cannabis.

Colorado

Colorado Lawmaker Sponsors the SAFE Banking Act

The time has come for cannabis companies to receive the same banking benefits as other businesses. The U.S. House of Representatives passed a bill enacting the Secure and Fair Enforcement Act of 2019, or SAFE Banking Act, on Sept. 25, which passed in a landslide vote. Colorado Rep. Ed Perlmutter sponsored the bill, and if it continues to receive approval, it would allow cannabis-related businesses to have access to banking, which has long been denied by the federal government. Cannabis-related businesses would have access to checking and savings banking accounts. This would also simplify finances for cannabis companies, and it would be beneficial to those who need loans or liens of credit. Perlmutter said in a tweet, “This is a huge milestone in reforming federal cannabis laws and reducing the public safety risk in communities across the country.” The next step for the SAFE Banking Act is to move to the republican-dominated Senate for approval.

State Tourism Board Includes Cannabis Tourism Training

The topic of cannabis tourism has been a back and forth issue for Colorado ever since legalization went into effect in 2014. Legal cannabis draws tourists to Colorado, but the lack of safe places to consume cannabis has become apparent to everyone including state officials. At the end of September, the Colorado Governor’s Tourism Conference was held. There were several panels and presentations to discuss all types of tourism issues and ideas in Colorado, including cannabis, which was endorsed and encouraged by Gov. Jared Polis. Only last year, a bill was passed that would allow businesses to apply for consumption permits. Now, the Colorado Tourism Office is offering cannabis training for businesses with social use permits. Polis assigned cannabis advocate Wanda James to the state tourism board in August. “A key goal of the training is to position frontline workers across the state to inspire the visitors they serve to seek out more experiences, especially in the state’s lesser-known destinations, to generate powerful word-of-mouth and generate even more economic impact from travelers,” stated a press release from the Colorado Tourism Office.

Los Angeles

Attorney Association Creates Cannabis Law Practice Section

The Los Angeles County Bar Association (LACBA) created a new law practice section specifically designed to assist cannabis business operators. The update will help business owners easily locate a lawyer who specializes in the cannabis industry. “The cannabis industry is booming, perhaps like the next gold rush. LACBA must provide its over 15,000 members with a practice group on the cutting edge of the law,” said Ronald F. Brot, president of LACBA. “Los Angeles already has countless business practices directly and indirectly involved with cannabis opportunities. The creation of the Cannabis Section within LACBA meets a current need, and provides an important and necessary space for the many types of lawyers who provide legal services to this industry.” As Los Angeles is one of the largest cannabis markets in the world, some operators have a very tough time? finding a lawyer who understands how the law works and the constant changes within the cannabis space.

Michigan

Michigan Farmers Harvest First Hemp Crop

In mid-October, industrial hemp farmers in Michigan began to harvest the first season of crops as part of Michigan’s pilot program under the 2018 Farm Bill. Michigan authorities licensed 572 registered cultivators and 423 processors, with a plan to grow 32,614 acres of hemp. The Michigan Department of Agriculture & Rural Development stated that it is unaware if the goal of 32,614 acres was achieved. One of the cultivators, Paw Paw Hemp Company, harvested nearly 30 acres of hemp for CBD oil production. “We want to empower our farmers, friends, and their families to live healthier, more eco-friendly lives through the production of hemp,” Paw Paw Hemp Company stated in a press release. The crops were planted in April and have matured and flowered due to the 12-hour light cycle that begins in September in Michigan. According to South Bend Tribune, it’s the first federally legal hemp crop in the Midwest since World War II.

Marijuana Regulatory Agency Expands Social Equity Program

Michigan’s Marijuana Regulatory Agency (MRA) presented its updated Social Equity Program in Kalamazoo on Oct. 7. In order to qualify for the program, applicants must live in one of the 19 designated communities that have been disproportionately impacted by the “War on Drugs.” “Today, the Marijuana Regulatory Agency announced an expansion of its Social Equity Program, which is designed to encourage participation in the marijuana industry by people who live in Michigan communities which have been disproportionately impacted by marijuana prohibition and enforcement,” an MRA release reads. Social Equity Program members will receive up to 60 percent off the application fee, the initial license fee and renewal fee. Disproportionately impacted communities will receive a 25 percent reduction, and an additional 25 percent off if the individual(s) with majority ownership has been a resident in a designated community and holds a cannabis conviction. A further 10 percent reduction will go to individuals who qualify for certain criteria, such as those who were registered caregivers between 2008 and 2017.

Oregon

Oregon Education Association Backs Decriminalization

The Oregon Education Association (OEA), a teacher’s union, announced on Oct. 4 that it supports a decriminalization measure in principle but it still has some concerns over how the money would be spent. The OEA is concerned about lost revenue because of funds that would be taken from schools and redirected to drug treatment programs. The Drug Addiction Treatment and Recovery Act would classify low-level drug possession as a treatment issue and not a criminal justice issue. “Again, the Oregon Education Association supports the policy behind this initiative. But as a practical and legal matter, it is essential that voters understand how the program will be paid for and the impact on education funding. The ballot title fails to do so and must be revised,” an OEA release states. The OEA estimates that schools stand to lose $65.7 million in funding, which amounts to two-thirds of a reduction.

OLCC Approves Punishments for Six Businesses

At the monthly meeting of the Oregon Liquor Control Commission (OLCC) on Oct. 17, the commission approved six violation stipulated settlement agreements. Most businesses were given steep fines and temporary suspensions, and one business, Gras Cannabis, will be forced to surrender its license for three violations. Another business, Artisan Agriculture, will not receive a renewed license after its old license expired. “The administrative hearings process is methodical and certain,” said Steve Marks, OLCC executive director. “Even though this case started last summer (2018), the end result is we’ve removed a bad actor from Oregon’s regulated marijuana system. We don’t have tolerance for this kind of behavior and licensees should know the clock eventually runs out on those who have no place in our system.” The license surrender was due to the business exceeding daily purchase limits, and other bad behaviors were reported.

San Diego

UC San Diego Center for Medicinal Cannabis Research Awards Grants to Five Studies

The Center for Medicinal Cannabis Research (CMCR) at the University of California, San Diego’s School of Medicine announced on Oct. 10 that it will award a total of $3 million in research grants to five research teams. “Within the medical community, there is a lot of interest in the role of medical cannabis and CBD,” said Professor of Psychiatry Igor Grant, who also serves as the CMCR director. “There is a hope that it could be yet another useful agent in some of these conditions, which are difficult to treat or disabling.” The five grants are funded by Proposition 64, which includes revenue set aside for the purpose of advancing scientific research regarding medical cannabis. It’s the CMCR’s first year of grant funding. Research studies will explore topics including cannabis’ potential to treat early psychosis, rheumatoid arthritis, insomnia, alcohol dependence and anorexia nervosa.

Washington

Washington Extends Leaf Data Systems Contract

The Washington State Liquor and Cannabis Board (LCB) issued a bulletin on Oct. 3, announcing that it has extended its contract for an additional two months with the traceability system software, Leaf Data Systems. “As you may know, the Liquor and Cannabis Board and our traceability software vendor, Leaf Data Systems, have been operating under a two-month contract extension through Sept. 30, 2019,” Deputy Director and Executive Sponsor Megan Duffy stated. “We have now agreed to an additional two-month extension, the terms of which will continue to focus solely on providing a stable system to our users. Leaf Data will operate the system and work on addressing post-release issues to ensure a stable system.” The LCB and Leaf Data Systems will now focus on maintaining the current LEAF system that licensees utilize for seed-to-sale tracking. A recent update in the system last July caused the software to crash for several days, which cost businesses thousands of dollars in lost revenue.

Governor Bans Flavored Vape Products

On Sept. 27, Gov. Jay Inslee issued Executive Order 19-03, which bans flavored vape products in the state containing nicotine or THC. The ban went into effect on Oct. 10 and affects both cannabis licensees and vapor product licensees. “I am pleased the State Board of Health agrees we cannot wait to act on this very important public health issue,” stated Gov. Inslee. “It comes down to protecting the health of Washingtonians, especially young people. These emergency rules will help protect public health and save lives.” Vape product vendors are required to post a specific warning sign at retail locations, add packaging requirements, disclose all compounds to the Liquor and Cannabis Board and cooperate with the ongoing vape investigation with state and federal authorities. The emergency rules follow a growing number of reports of mysterious vape-related cases of pulmonary illness.

National

Australia to Fund Medical Cannabis and Cancer Research

Australian officials will allocate A$3 million ($2.03 million USD) to study the benefits of medical cannabis on cancer patients. On Oct. 5, Health Minister Greg Hunt said that so far, 11,000 patients have been granted access to medical cannabis. “Our Government is committed to ensuring a safe, quality supply of medicinal cannabis to Australian patients, but only when it is prescribed by a medical professional,” said Hunt. “There have only been a limited number of well-designed clinical studies on medicinal cannabis, and we need to increase the evidence base to support medical professionals.” Hunt spoke at a fundraiser walk led by former CULTURE cover celebrity Olivia Newton-John, who is currently touting the beneficial effects of medical cannabis. Newton-John herself has utilized medical cannabis to battle a recurrence of stage 4 cancer.

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