November 2015 News Nuggets

Bay Area

Cannabis Collectives in San Jose Work to Comply with City Regulation

Cannabis collectives in San Jose are trying to comply with a strict set of laws, put forth in June of last year, in order to remain in business. The laws require the collectives to re-locate themselves to industrial areas throughout the city and grow their own cannabis or buy from just one local grower, according to The San Jose Tribune. Dave Hodges, a collective owner who is being forced to close his second collective because of the laws, commented on the state of situation, “They’ve designed a system that makes it virtually impossible for anyone to run this type of business.” So far, there are 20 collectives standing after 67 have been shut down due to their inability to abide by these rules. With the last regulation deadline set for December 18, some collectives are hoping that city officials will loosen up on the regulations while others choose to closely abide by the rules in hopes of becoming one of few collectives left in San Jose.

Cannabis Companies Donate to Patients Affected by Wildfires

Medical cannabis companies Care by Design and Absolute Extracts donated $200 worth of cannabis per patient to individuals affected by the valley wildfires that occurred in Northern California. The wildfires burned down 118 square miles, destroying nearly 2,000 homes, according to The Los Angeles Times. Seeing the devastating effects of the wildfires, the companies made the donations available at five collectives in San Francisco, Santa Rosa, Sebastopol and Lake County. The only requirements needed for patients to receive the donation was to have a prescription for medical cannabis and proof of home address in Cobb, Kelseyville, Middletown and Hidden Valley Lake, which were the communities affected most by the wildfires. The company donated $20,000 worth of product, and the donation ran from late September to early October.

Colorado

Pueblo Board of Water Works Working on New Rules for Cannabis Cultivators

Pueblo County is experiencing an influx of cannabis cultivators settling down in the are; with them comes the need for an abundance of water. One water dispensing station, the Pueblo Board Water Works, is feeling the strain of such demand from customers and has decided to make a few slight changes to accommodate for the large trucks cannabis cultivators bring to fill at the station. Currently, the trucks fill up their tanks during the same time of day when most residential customers visit, resulting in unnecessary wait times. Although seven cannabis growers are leasing water from Pueblo Board Water Works, its Director of Operations, Matt Trujillo, says his main priority are residential customers, stating, “If we see one person, I’ll say, monopolizing the water station, we have the ability to try to move them to off-peak hours where nobody is filling, so it’s not a strain on our system at that time.” Trujillo also stated that the Board is working on managing the use of the facility, with interest in not overtaxing water and supporting their existing customers.

Coloradans to Decide if State Gets to Keep $66 Million in Cannabis Taxes

Colorado citizens get to vote this month on proposition BB which will decide whether or not the state will get to keep $66 million in excess tax money generated from the sale of cannabis, or give it back to taxpayers. The Proposition has already received support from Governor John Hickenlooper, who believes that the excess revenue will help fund education and regulation efforts, according to 9 News. If the proposition is approved by voters, $40 million will go towards school construction and $12 million will go towards cannabis education. While Hickenlooper believes that the money going into cannabis education will help prevent use by minors, those who oppose the proposition believe that Coloradans will take home less money due to the tax hike. If Proposition BB does not pass, $25 million would be refunded to tax payers, amounting to a whopping $6-$8 refund each. The rest of the money would go to cannabis cultivators ($24 million) and those who purchased cannabis ($17 million), through a temporary sales tax reduction.

Los Angeles

Los Angeles City Council Addresses Misuse of Tax Registration by Collectives

Los Angeles City Council members expressed frustration towards illegal cannabis collectives still operating within the city, and those businesses’ ability to apply for business tax registration certificates at City Hall. A total of 447 cannabis businesses filed for tax renewals for 2015 when Proposition D, which was passed in 2013, capped the number of legal collectives allowed within the city to 135. Office of Finance Assistant Director, Ed Cabrera, told the council that he has no authority to determine whether or not a business is legal when they register with the city to pay taxes, adding, “Our activity is solely centered on identifying their classifications for tax purposes only.” Since this issue was addressed, councilwoman, Nancy Martinez set forth a motion that was voted 13-0 by the council in late October which will address the City Attorney’s Office, telling them to instruct the Office of Finance not to give out new tax certificates to collectives illegally running in the city. Martinez, who has worked relentlessly to shut down illegal collectives within the city stated, “As much as we try to shut the illegal ones (collectives) down, they turn around and we issue a BTRC (business tax registration certificate) to them.”

Medical Cannabis Initiative Delayed in Costa Mesa

Medical cannabis collectives have been illegal in Costa Mesa since 2005 and will continue to remain that way until city elections occur next year. This is due to the decision made by a Superior Court Judge in Orange County who ruled that the city will not hold special election for a medical cannabis initiative this year. The initiative, which aims to permit up to four collectives to open in Costa Mesa, fell into contention in December of 2014 and was voted by city council to be moved to November of 2016, according to Daily Pilot. Because the initiative proposes a new tax law, council members determined that under Prop 218, the initiative cannot be voted on until elections are held for a new governing body, leaving local advocates to wait until November 8, 2016 for the opportunity to vote.

Michigan

Clinton Ordinance Prohibits Cannabis Use While Driving

The Clinton Township has passed an ordinance that will both make roads safer for citizens of the city and maintain the legal use of medical cannabis. In a township board meeting on October 5, the board voted unanimously on the ordinance which will, “advance the legitimate and rational regulation in the transportation of usable marijuana,” according to C&G Newspapers. The ordinance states that medical cannabis can only be transported by registered patients and must be enclosed in a case that is placed in the trunk of any motor vehicle, backseat of an SUV-type vehicle or locked in an area within the vehicle that is not readily accessible to the driver. Township Attorney Jack Dolan said that the ordinance was not created with the intent to punish or inconvenience patients who are allowed to use medical cannabis, but rather to serve as a proponent for safer driving, since medical cannabis users have been caught smoking and driving in the past. Furthermore, those caught in violation of the ordinance will be charged a misdemeanor.

Portage City Council Discusses Decriminalizing Cannabis

The Portage City Council conducted a meeting where they addressed a series of important topics, one of which was a charter amended that will be on the November vote, which would decriminalize cannabis for adults 21 and over for carrying one ounce or less of cannabis, according to MLive.com. Although the council agreed that they should not attempt to affect voters decisions on the amendment, they also agreed that it would be a burden on enforcement, since possession of cannabis is illegal under state and federal laws. Incumbent Patricia Randall felt strongly about this observation stating, “I believe our ordinances need to be in compliance with federal and state law.” Although Randall expressed that she disagrees with the amendment, she appreciates the medical benefits cannabis has to offer to those in need.

Oregon

Oregon Seeks Individuals for Cannabis Research Task Force

The Oregon Health Authority’s Public Health Division is looking for individuals, appointed by the governor, to fulfill 10 positions on a task force created with the intent of researching the medical and public health properties of cannabis. This comes with the passing of Senate Bill 844, which requires the state of Oregon to appoint a task force that will meet about eight times for roughly three hours each session in order to report findings on cannabis to the Legislature by February 1, 2016, according to The Oregonian. A few of the listed positions include a substance abuse treatment specialist, a cancer expert and one person with agricultural research expertise. Research on cannabis has been hard in the past due to its classification as a Schedule I Controlled Substance, but the research conducted by the Cannabis Research Task Force will help state officials determine a grow site for the state as well as figure out ways to fund further research of medical cannabis.

First Union Contract for cannabis workers in Oregon

The labor union known as the United Food and Commercial Workers 555 (UFCW) is negotiating terms to represent cannabis workers in Oregon by giving them decent living wages and benefits such as health coverage and paid holidays. The first Oregon-based dispensary whose employees sign an agreement with UFCW is Stoney Brothers, which now offers wages of $15 an hour for cashiers, $20 an hour for trimmers and $35 an hour for master cannabis cultivators, according to The Oregonian. UFCW’s example has lead more than 50 cannabis businesses in Oregon to express interest in working with the UFCW, according to Statesman Journal. While the Federal government does not have laws intact for cannabis workers, UCFW Local 555 President, Dan Clay, believes the company’s services are essential, “Federal law doesn’t protect those workers like it would regular workers in a retail store or a plant because the feds don’t recognize cannabis as legal. They’re not enforcing things like minimum wage or any hours laws or even in many cases workers’ compensation laws.”

San Diego

San Diego Approves 11th Legal Cannabis Collective

The San Diego Planning Commission has approved the county’s 11th legal cannabis collective, which aims to open in Stockton, east of downtown. The collective is one of 36 prospective facilities to open up in San Diego County since an ordinance was approved in 2014, allowing the legal operation of medical cannabis businesses. The 10 collectives that were previously approved include one in Mission Valley, Otay Mesa, Mira Mesa, San Ysidro, eastern Pacific Beach, Barrio Logan and Midway District while Kearny Mesa has three, according to the San Diego Tribune. The Stockton collective will be a 4,412 square-foot facility and has taken the last available opportunity to obtain approval in Council District 8. Although the city is working to open new legal medical cannabis collectives, action is still being taken against the remaining facilities that are being run illegally throughout the city.

Santa Ysabel Tribe’s Contracts Cannabis Enterprise

The Lipay Nation of Santa Ysabel is allowing a county-licensed medical cannabis collective to use a former casino facility that the tribe closed in February of last year to cultivate cannabis for medical patients. According to an email sent to tribe members in late September, representatives from the Santa Ysabel Tribal Development Corporation, Santa Ysabel Tribal Cannabis Regulatory Agency and U.S. Attorney’s Office agreed upon this enterprise throughout the course of several meetings. A member from the District Attorney’s office was given a walkthrough of the facility, as well as full descriptions of how the cultivation center will be set up.  Modification has already taken place on the former casino facility, which will be renamed Santa Ysabel Botanical Enterprise Facility. Although this enterprise seems like another small step in the acceptance of medical cannabis amongst tribes, tribe member June Sortore, finds the tribe’s actions hypocritical since personal cultivation of cannabis is not currently allowed on the tribe’s reservation, even for medical patients, according to East County Magazine. 

Washington

Washington Accepts Applications for New Cannabis Shops

The Liquor and State Cannabis Board in Seattle began accepting applications for new cannabis shops in October, which will eliminate “the distinction between medical and recreational marijuana shops,” according to King 5 Live. This is the first time the state has decided to license new cannabis shops since 2013, which will allow state officials to increase the amount of plants each shop is allowed to grow, as well as grant shops the ability to sell cannabis for medical and recreational use. Although this seems exciting for newly accepted shops, their ability to sell medical cannabis depends on whether or not the Department of Health gives them the green light. Furthermore, applicants who ran or worked in a medical cannabis shop during 2012 are priority applicants, with higher priority being given to those who have stayed current on their taxes and business licenses, according to The News Tribune.

Emergency Cannabis Laws Put into Effect in Washington

The Washington Department of Health has announced the implementation of a set of emergency laws that will “create standards for products that any consumer may rely upon,” according to the official government document. The Marijuana Product Compliance document details the rules for THC dosage in medical cannabis products and how they are to be labeled, the testing of products, safe handling and employee training. The law states that cannabis products must be packaged in servings of up to 50mg of THC and contain no more than 10 servings, while concentrates are allowed to contain no more than two percent of THC, with 25 times more CBD per weight. All flower products must be tested for pesticides and heavy metals, with a sample size of three grams per three pounds. Labels on any medical cannabis products must not have imagery depicted on the packaging that is generally associated with cannabis use, cannot use the words “prescription” or “RX” and must state that the product is not FDA approved to treat, cure or prevent any disease.  The new law also states that all cannabis facilities must meet standards of sanitation as well as employ only individuals with valid medical cannabis authorizations.

National

South Dakota Tribe to Open World’s First Cannabis Resort

A small Native American tribe in Flandreau, South Dakota, known as the Santee Sioux, has already begun making plans to open the world’s first cannabis resort on its land. Due to high competition and the residual effects of the recession affecting the Santee Sioux’s casino business, the tribe was searching for new ways to increase customer traffic, according to the New York Post. As a result, the leaders of the tribe have decided to grow their own cannabis and sell it in a smoking lounge that will feature bar and food service, arcade games and eventually expand to offering slot machines and an outside music venue. The tribe estimates that this venture will bring in $2 million a month, which will add income generated from casino revenue. The resort is expected to begin business in January of 2016, with the first cannabis sale expected to take place on New Year’s Eve.

 World 

Cannabis Cultivation Legalized in Victoria, Australia

Victoria has become the first Australian state to legalize the cultivation of medical cannabis for patients suffering from conditions such as cancer, HIV/Aids, epilepsy and chronic pain. This came after the Victoria Law Commission’s Report on Medicinal Cannabis was approved by Parliament. The report includes 42 recommendations on how to safely cultivate, manufacture and transport cannabis within Victoria, as well as patient eligibility and the need for ongoing research, according to Premier of Victoria. While the government only fully accepted 40 of the recommendations, the other two were accepted in principal, which will allow medical cannabis to be conveniently accessible for patients in need. Eligible patients will be granted access to cannabis products such as oils, tinctures and vaporizable liquids but will not be able to legally ingest cannabis in smokable form. Medical cannabis is expected to be fully legal in Victoria by 2017 with children suffering from severe epilepsy given priority access.