Law The Cannabis Chronicles - Misc Cannabis News

[Baron23]

'There’s no playbook': Two failed pot deals highlight growing pains

If cannabis investors were waiting for a sign that the beleaguered industry is turning the corner, Tuesday wasn’t that day.

Pot stocks came under pressure after U.S. cannabis operator MedMen Enterprises Inc. announced the termination of its all-stock takeover of PharmaCann LLC. The sector’s growing pains were also evident in Canada, as Aleafia Health Inc. ended a five-year supply agreement with Aphria Inc., citing a failure to meet obligations under the deal.
These developments come on the heels of a turbulent period in the cannabis space. Regulatory woes, disappointing earnings, ongoing problems getting pot stores up and running, and an emerging health crisis linked to vaping are casting dark clouds across the industry.

Legalizing cannabis has been “an unprecedented undertaking,” said David Wood, a Calgary-based partner at Borden Ladner Gervais LLP, in a phone interview.
“We haven’t really chosen to compete with black markets by regulating them before. There’s no playbook here,” he said.

It’s a far cry from a year ago when exuberance carried investors into the cannabis sector after Canada became the first developed nation to legalize recreational use of the drug. Constellation Brands Inc.’s $5-billion bet on Canopy Growth Corp. fueled optimism that not only is legal pot here to stay, but will be a valuable commodity in the pharmaceutical and consumer-packaged goods industries.

Since then, cannabis company valuations have tumbled.

The closely-watched Horizons Marijuana Life Sciences Index ETF is down about 50 per cent over the past year and individual stocks have suffered similar, if not more outsized, downturns. Canopy, for example, is down 28 per cent since it received its investment from Constellation and 59 per cent from its peak a year ago.
In fact, MedMen directly cited the decline in Horizons’ cannabis-focused ETF as one of the “market developments” that led the U.S. cannabis operator to call off the PharmaCann deal on Tuesday.

Investors bought into the cannabis hype, rather than acknowledging its legalization was about ensuring public safety and not industry profits, according to Laurence Booth, finance professor at the University of Toronto’s Rotman School of Business.

“Fundamentally, cannabis is an agricultural product,” he said in a phone interview. “We don’t go this crazy for wheat or soybeans.”

 

[ClearBlueLou]

Not to seem negative, but good: I hope they all go under.

Extorting black-market rates from an unserved population for sub-standard product in a politically constricted marketplace was an idiot’s dream; maybe an idiot will wake up now....

Branding, marketing, exclusionary dealing, footprint, commoditization, cost-cutting, race for the bottom....

Get out the way, assholes, and just let us grow it and use it. When your heads stop exploding from nothing going to hell, let's talk about what would make sense...or you could just, y’know, shut up. And listen

 

[Baron23]

Inside Mitch McConnell’s Private Lunch Meeting With The Marijuana Industry
https://www.marijuanamoment.net/ins...e-lunch-meeting-with-the-marijuana-industry/#

The distance between Senate Majority Leader Mitch McConnell (R-KY) and the marijuana industry seems to be narrowing, albeit gradually.

Weeks after the House passed a bill to protect banks that service cannabis business from being penalized by federal regulators, McConnell held several private meetings with marijuana, hemp and CBD stakeholders over the course of a two-day trip this week to Southern California, where he also toured at least one cannabis business.
Marijuana Moment spoke with one attendee of a lunch meeting the majority leader held on Thursday that cannabis industry representatives participated in.

While the 90-minute gathering of about 20 people, held at the Newport Beach Country Club, wasn’t solely focused on marijuana, issues surrounding the plant were a key area of discussion.

The attendee, who did not wish to be named in order to candidly discuss the event, said that McConnell mostly listened as others spoke about challenges experienced by marijuana, hemp and CBD businesses under current federal laws.

“We put our best face forward,” the attendee said, adding that “we were strategic by not forcing him into a corner” by pressing him with pointed questions.
McConnell, in turn, made no legislative commitments but noted that cannabis is a “complicated issue” and in particular made clear he understands the industry’s problems with banking access.

“He recognizes the issues that need to be resolved,” the attendee said.

That the luncheon and other meetings even took place is significant given the majority leader’s longstanding opposition to marijuana reform. While he’s been a champion of hemp legalization, he’s taken pains to distinguish the crop from what he’s described as its “illicit cousin,” marijuana.

“These are two entirely separate plants,” McConnell said when asked about loosening federal marijuana laws last year. “There is a lot of confusion about what hemp is. It has an illicit cousin, which I choose not to embrace.”

It’s likely that the House passage of the cannabis banking bill has put added pressure on McConnell to decide whether he’s willing to allow a vote on the modest reform measure in his chamber.

Cannabis industry representatives—including a hemp farmer—made up about a third of attendees at the fundraising lunch, with other seats being taken by Orange County Republican donors.

Marijuana Moment reached out to McConnell’s office for comment, but a representative was not immediately available.
Besides marijuana, other issues discussed over wedge salad with steak included impeachment proceedings, Turkey and the role of the Senate in confirming judicial nominees.

 

[ClearBlueLou]

Betting no one asked about Merrick Garland...

 

[Baron23]

Betting no one asked about Merrick Garland...

Asked him what?

 

[ClearBlueLou]

How refusing the president’s nomination of Garland to SCOTUS fits in with McConnell’s views on the role of the Senate in confirming judicial nominees (last line of the article)

sorry...off-topic...not trying to start something

 

[Baron23]

Study Funded By Feds Debunks Myths About Marijuana Legalization’s Alleged Harms


The Department of Justice paid for a new study on the impact of marijuana legalization that ended up showing cannabis programs do not seem to negatively affect neighboring, non-legal states.


The paper’s authors said they sought to answer three questions in these analysis of state-level data: 1) How does legalization impact law enforcement resources in legal states? 2) How does it impact those resources in bordering, non-legal states? and 3) What does legalizing cannabis mean for drug trafficking?


To assess the impact, the researchers looked at statistics on drug possession and distribution arrests in a mix of legalized states and nearby ones that maintained prohibition. According to that data, legalization didn’t cause the sky to fall.


“Legalizing marijuana did not have a noticeable impact on indicators in states that bordered those that legalized,” the study concluded, adding that “there were no noticeable indications of an increase in arrests related to transportation or trafficking offenses in states along the northern or southern borders.”


That is evidently a finding that the Justice Department does not want the public to think it endorses. At the beginning of the report—and on every other page—there’s a disclaimer stressing that while federal funds were used to support the research, “[o]pinions or points of view expressed are those of the author(s) and do not necessarily reflect the official position or policies of the U.S. Department of Justice.”


Here’s what the study authors, who are affiliated with the Justice Research and Statistics Association, found:


Not surprisingly, arrests for marijuana possession dropped significantly in Washington after the state legalized cannabis in 2012. Those arrests continued to drop after retails sales became available. Distribution arrests followed a similar trend.

Via NCJRS.

Via NCJRS.

There was less data on Oregon at the time of the study in 2015, as the state legalized the previous year. However, the statistics showed that during “the post-legalization period, arrests for marijuana possession, already low, dropped to close to zero.” Cannabis distribution charges in the state also followed a downward trend.

Via NCJRS.

Via NCJRS.

The researchers then looked at neighboring states that did not legalize. While cannabis accounted for the vast majority of drug possession arrests in Oklahoma, where cannabis is still prohibited for adult use, the arrest rate dipped marginally during the post-legalization years in Colorado from 2012 to 2014.

Via NCJRS.

Arrests for sales and manufacturing of cannabis in Oklahoma also dropped in that timeframe, with the exception of a small spike in 2013.

Via NCJRS.

Arrests for possession “increased from 2003 to 2008, but did not change much from 2009 to 2013 (except for a slight increase in 2012)” in Nebraska.

Via NCJRS.

The findings from Nebraska and Oklahoma are particularly notable since those two states sued Colorado over its marijuana legalization law in 2014, alleging that it effectively polluted their jurisdictions with illegal cannabis. The Supreme Court declined to take the case, and the new study seems to undermine the prohibitionist states’ claims about the impact their neighbor’s legalization law had across their borders.


“No noticeable change in the trend line for marijuana occurred after recreational use was legalized in Colorado,” the study authors said of data on possession convictions in Kansas from 2011 to 2014.

Via NCJRS.

Finally, the researchers looked at drug trafficking trends in Idaho, where cannabis is not legal, and Washington state.


Trafficking arrests actually increased significantly in 2012 and 2013, but at the same time, the number of cases that were ultimately dismissed far outpaced those that ended in a guilty plea in the post-legalization period.

Via NCJRS.

Via NCJRS.

In Washington, seizures of marijuana plummeted after the state legalized cannabis. Those seizures continued to drop, with the exception of a significant spike in January 2014.

Via NCJRS.

The researchers supplemented their report with interviews with several law enforcement officials. Despite the data-based findings on arrest rates for possession, distribution and seizures, police broadly expressed anecdotal concerns about issues such as perceived increases in youth usage, THC potency, drug-impaired driving and an influx in out-of-state visitors that have taxed their departments.


Colorado-based interviewees apparently indicated that the increased availability in higher potency THC products has mitigated the influence of Mexican drug cartels. However, Oregon respondents “reported that Russian and Afghani groups who steal crops and cash from local growers are now heavily involved in drug trafficking.”


After discussing the data limitations of the study, the authors concluded that “it indeed seems to be the case that legalizing the recreational use of marijuana results in fewer marijuana related arrests and court cases” and that while law enforcement sources voiced various concerns, several “indicated that methamphetamine and heroin were much larger problems for their agencies than was marijuana.”


The team “saw no evidence that marijuana legalization had an impact on indicators in border states,” adding that they “found no indications of increases in arrests related to transportation/trafficking offenses.”


“Again, it is possible that different indicators, examined over a longer period of time, might reveal impacts of marijuana legalization on drug trafficking,” they wrote.

 

[momofthegoons]

Former FDA Chief Wants Federal Government To Regulate State Marijuana Markets

Former Food and Drug Administration (FDA) Commissioner Scott Gottlieb said on Monday that the federal government should regulate state marijuana programs.

In his clearest comments on the issue to date, Gottlieb said in a CNBC appearance that the rise in vaping-related lung injuries underscores the need for a federal regulatory scheme that would empower agencies to impose industry standards on aspects of legal cannabis markets such as THC potency and allowable forms of consumption.

Previously, the official had been ambiguous about the extent to which the federal government should get involved, broadly arguing that vaping issues reflect a consequence of conflicting state and federal laws without specifically saying what his preferred policy fix would be. However, in an editorial for The Wall Street Journal published last week, he provided some clarification—hinting that federal drug scheduling laws should be reformed for cannabis—but still left room for interpretation.

But now, he is beginning to lay out specific details of a regulatory agenda.

Gottlieb said during the TV interview that enforcing prohibition is no longer “politically practicable” and that Congress should pass “a federal law that actually can be enforced and allow federal regulatory authorities to impose appropriate supervision.”

While he said he’s not in favor of adult-use legalization and would “like to see the recreational uses shut down entirely,” the reality is that many states have made that decision and so any federal regulatory scheme would have to include “some accommodation of that.”

“I think the time has come that we need to grapple with this at a federal level. We can’t ignore it any more.”

Asked whether states are capable of providing the types of regulations he’s calling for, Gottlieb said no because there’s a patchwork of policies across the country and states “don’t have the capacity to both police what’s being sold in their so-called legal dispensaries as well as shut down the black market.”

“I think you’re going to need federal authorities in there to do that,” he said.

Under the regulatory model Gottlieb is envisioning, FDA and other agencies such as the Drug Enforcement Administration (DEA) “could regulate what’s being sold for the potency, for the manufacturing, for the ingredients, for the claims that are being made.”

“Even if we were to federalize it and allow some form of recreational use, we could limit what can be sold, the potency of what could be sold, the forms in which it can be sold,” he said, adding that he doesn’t think vaping THC products should be allowed.

Federal agencies could impose “tighter controls on the medical claims, holding them to a higher standard and allowing some form of recreational use, probably for products that are lower concentration, that are only delivered in forms that pose less harm than vaping e-liquids,” he said.

“There’s a way to have a compromise where you allow some form of recreational access in the states that want to allow it but something that looks far different than what you have today, something that’s far less permissive than the state laws,” he said. “That’s not a great outcome in my view from a public health standpoint, but what we have now is far worse where you have a federal government not enforcing the law at all—barely enforcing the law—because they know the existing law isn’t practical, and the states not imposing any supervision because they’re incapable of doing it or they don’t want to step in in a vigorous way.”

 

[Bcbud]

Trump Admin. Wants Drug Testing for Unemployment Benefits

The Trump administration has issued rules allowing drug tests (including for cannabis, of course) for those receiving unemployment benefits. But as more states embrace legalization, pressure is mounting to do away with cannabis testing for workers altogether.

cannabisnow.com

 

[Baron23]

Scott Gottlieb said on Monday that the federal government should regulate state marijuana programs.

Ah yeah, that's what we need.....yet more government involved.

FFS

 

[Baron23]

"I can admit there are some major problems with legalization, especially in the U.S....(sic)....A glaring problem is that government lawmakers and bureaucrats are in charge of implementing it"​

A person after my own heart. LOL

The problem with marijuana legalization

Those who support marijuana prohibition like to talk about all of the problems they feel are inherent to and result from legalization. As someone who wholeheartedly supports an end to prohibition, I can admit there are some major problems with legalization, especially in the U.S.

A glaring problem is that government lawmakers and bureaucrats are in charge of implementing it. This leads to a myriad of delays and compromises that we chronicle regularly here at The Marijuana Times. But some would say that an even bigger problem is the incremental, piecemeal way legalization is being enacted.

Of course, political realities have dictated the course of cannabis law reform. With the federal government refusing to budge when it comes to marijuana, a state-by-state strategy was the most likely option for success. Since voters and lawmakers and government officials decide in each state what the law will be, not only are there variations from state to state, but also from jurisdiction to jurisdiction within a state.

This has created a situation where someone driving from New York to California could be subject to scores of different laws regarding cannabis along the way. The inefficiency of this is obvious and the confusion it causes is immeasurable. It is such a clear problem that the mainstream press can even see it, as evidenced by this recent piece in Politico that focuses mainly on the friction between the federal government and the states over cannabis.

Prohibition itself was a pretty cut-and-dried process, especially with the passage of The Controlled Substances Act of 1970. That legislation made everything pertaining to cannabis illegal and subject to federal law enforcement, allowing for the creation of the DEA. State legislatures had to follow suit or face all the consequences that come from defying the federal government.

But to reverse that process is a much longer and more arduous journey. Fighting state by state, sometimes even town by town, takes much more time than debating and passing a comprehensive bill in the federal Congress. More time allows for more setbacks, which adds more time, and so on.
If the federal government has passed and enacted marijuana legalization in, say, 2012, how many states would be left today still fighting to keep prohibition? Outside a handful of more conservative states, I can’t imagine too many lawmakers would want to put up that fight.

Now consider the path we are currently on. Without federal legalization, how long do you think it will take until 40 states have adult-use legalization? Does “decades” seem like an unreasonable answer? I would submit that it does not.

The bottom line is that the way we have to go about legalization sucks. It’s slow and takes a tremendous amount of effort for relatively little progress. It creates many problems that would be avoided if things were different on the federal level.

​

 

[ClearBlueLou]

Ah yeah, that's what we need.....yet more government involved.
FFS

yeah, because that’s been working so great so far...

Let ‘em sort out our “50 Shades of Electoral Dysfunction Legacy” if they need a project

 

[Baron23]

"Ensure a fair and competitive market, deploying strategies such as a limitation on the number of licenses or licenses types to protect against the manipulation of markets."​

I see that they list "fair and competitive" market...but certainly not free market.

I'm sure Cuomo and the others can manage to fuck it up as bad as Quebec. I'm sure the constituents are looking forward to that.

As to coordinating on tax rates....well, two thoughts: These states represent some of the most confiscatory tax schemes in the country and its why people are streaming out of them....so, their idea "let's fucking do it again, mates! haha" sigh. And, if commercial entities were to set such a goal wrt to price or profit they would be sued by the Government for anti-competitive actions.

Northeast governors take big step toward regional cannabis coordination

Democratic governors from New York, New Jersey, Pennsylvania and Connecticut took a landmark step Thursday toward coordinating recreational marijuana legalization efforts, agreeing on basic principles involving market regulation, taxation and social equity.

They also focused on the vaping crisis, agreeing that states should either ban flavored vaporizer products or regulate them to reduce their attractiveness to youth and that vape product safety standards should be implemented.

It is believed to mark the first such effort among a group of regional governors, and could spur others to follow suit.

Noah Potter, a cannabis attorney at Hoban Law Group in New York, had two quick takeaways from a news release summarizing what the governors agreed to:

• The Northeast governors want to coordinate tax policy to avoid people from crossing state lines. Residents in New York already are reportedly frequently going to Western Massachusetts to buy cannabis products.
• The Northeast corridor could legalize as a bloc in 2020.

“The question is to what extent there will be coordinated bill drafting,” Potter wrote in an email to Marijuana Business Daily.

New York Gov. Andrew Cuomo said in his opening public remarks: “To the extent regional coordination makes sense and it is politically practicable, we want to do that.”

According to a news release, the states agreed to cannabis tax principles as well as best practices to ensure that disproportionately affected communities from the war on drugs have access to a legalized rec MJ industry.

Rhode Island’s governor, Gina Raimondo, also was quoted in the news release as being part of the group, although it wasn’t immediately clear if she had attended in person.

Here are some of the principles agreed to, according to the news release:

• Identify best practices with regard to taxation, cannabis production and cultivation.
• Ensure a fair and competitive market, deploying strategies such as a limitation on the number of licenses or licenses types to protect against the manipulation of markets.
• Encourage a stable regional market by identifying and implementing a similar overall effective tax rate for cannabis products that also encourages price stability.
• Implement social equity initiatives to ensure industry access to those who have been disproportionately impacted by the federal prohibition of cannabis.
• Prioritize small and diverse business participation.
• Advocate for the passage of the Secure and Fair Enforcement (SAFE) Banking Act, which would permit financial institutions to serve cannabis-related businesses without fear of federal punishment.

 

[momofthegoons]

Michael J. Fox Foundation Strongly Urges Support of Medical Cannabis Research

The Michael J. Fox Foundation (MJFF) asserted its support of increased access to cannabis for the purpose of medical research. In addition, the foundation is promoting three specific cannabis reform bills that would eliminate barriers to research.

The Medical Cannabis Research Act of 2019, or H.R. 601, would increase pathways to cannabis research, most notably for Parkinson’s disease. The VA Medical Cannabis Research Act of 2019, or H.R. 712 and S. 179 in the Senate, would increase access to medical cannabis for veterans. The Expanding Cannabis Research and Information Act, or H.R. 4322 and S. 2400 in the Senate, would reclassify cannabis at the federal level. MJFF specifically joined the Parkinson’s Foundation to send letters of support for The Expanding Cannabis Research and Information Act.

“Removing barriers for medical cannabis is one way in which Congress can help scientific researchers determine what the benefits of medical cannabis might be for Parkinson’s disease,” said Thompson, senior vice president of public policy for MJFF. “Our role on the public policy team is to work with Congress and the administration to ensure there is access and funding for research and care initiatives that can benefit people living with Parkinson’s and, right now, that includes access to medical cannabis for research.”

Impressively, MJFF also sent a letter to the U.S. Food & Drug Administration in 2018 to urge the government to reschedule cannabis. Last June, MJFF also sent a letter to the FDA again urging global cannabis reform through the World Health Organization. A third letter was sent to the FDA urging improved quality of labeling and safety.

Fox himself rarely talks about medical cannabis in the public eye, but has signaled support for the reclassification of the plant. On Oct. 17, MJFF’s Third Thursday live webinar informed viewers about medical cannabis and other alternative therapies. The webinar can be watched on demand after the live event.

 

[Baron23]

5 reasons the marijuana black market won't go away

Cannabis has been anointed by Wall Street as one of the fastest-growing industries on the planet. After sales more than tripled worldwide between 2014 and 2018, Wall Street has forecast a roughly fivefold to 18-fold increase in global annual revenue by the time 2030 rolls around. This type of growth is impossible for Wall Street and investors to ignore, which is a big reason pot stocks have been all the rage.
But if you've been paying close attention to the industry, you're likely well aware that marijuana stocks have been nothing short of a buzzkill over the past six months and change. Many have seen their share price cut in half, or possibly worse, as a host of challenges have cropped up.

Black market marijuana is here to stay
Worse yet, the legalization of recreational marijuana in Canada, as well as in select U.S. states, hasn't stomped out black market cannabis, as initially expected. In California, the largest legal weed market in the world by annual sales, illicit marijuana sales are projected to outpace legal pot sales in 2019 by a significant margin: $8.7 billion to $3.1 billion. Meanwhile, analysts at Scotiabank estimated in early February that the black market would be responsible for 71% of total cannabis sales in Canada in 2019.
How are illicit producers bucking the push toward a legalized marijuana environment, you ask? The blame rests with the following five factors.
1. Supply issues in Canada
In our neighbor to the north, supply shortages have been a persistent problem since recreational weed sales began one year ago, with a trio of problems to blame.
First, regulatory agency Health Canada has been buried by cultivation, processing, and sales license applications. It entered the year with more than 800 applications on its desk, and despite implementing aggressive changes to the cultivation licensing process, it's going to take months, or perhaps more than a year, for the agency to work through its backlog. In the interim, cannabis growers are forced to wait to either grow or sell marijuana.
Secondly -- and I'll have more to say on this in a subsequent point -- certain Canadian provinces have been slow to give the green light to physical dispensary licenses. With few retail stores for consumers to shop at, illicit marijuana has filled the void.
And thirdly, pot growers have been slow to start and complete cultivation projects. All of these factors have allowed illicit weed producers to thrive.

2. Tax issues in select U.S. states



In the United States, high tax rates have been effectively driving consumers to purchase black market marijuana.
California, for example, is taxing the daylights out of its pot buyers. In addition to passing along a state tax and local tax, buyers are paying a 15% excise tax, as well as a wholesale tax of $9.25 per ounce of dried cannabis flower, or $2.75 per ounce of cannabis leaves. Add this up, and it could work out to an aggregate tax rate of 45% on legal pot. And, mind you, this doesn't include additional costs such as the laboratory testing on weed grown in the Golden State, which is also being factored into the price that consumers pay.
Suffice it to say that legal cannabis simply can't complete with illicit producers on price. This is one of the reasons I firmly believe MedMen Enterprises (OTC:MMNFF) has struggled of late. To be fair, MedMen is losing a lot of money -- $178.4 million in net operating losses through nine months of fiscal 2019 -- and it recently terminated its acquisition of PharmaCann to seemingly conserve capital, so it has more than just one problem. But according to the company's third-quarter operating results and preliminary fourth-quarter review, MedMen's existing California locations delivered just 5% sequential growth in the third quarter and 10% sequential growth in the fourth quarter. That's not very impressive given how nascent the recreational industry is in the Golden State, and it speaks to the influence the black market has for the time being.

3. A slow dispensary approval process throughout North America
Another clear problem that's allowed the black market to persist is the slow approval process for dispensary licenses in both Canada and select U.S. states.
In Canada, Quebec-based grower HEXO (NYSE:HEXO) announced during its fourth-quarter operational update that the slow pace of dispensary store openings has adversely impacted its sell-through rate. Despite recreational weed sales commencing last October, HEXO's home province of Quebec didn't even see its own dispensaries open seven days a week until May, primarily due to severe supply shortages. Furthermore, there are far too few locations open to provide adequate supply to Quebec's adult residents. Perhaps, then, it's no surprise that HEXO removed its 2020 sales guidance and reduced expectations for sequential fourth-quarter sales growth from "a doubling" to about 19%, at the midpoint.
In the U.S., local regulators in California have been notoriously slow to approve dispensary store licenses. As of the midpoint of 2019, California had just one dispensary open per 61,000 adults aged 21 and over, which compares to one open dispensary per 5,567 adults aged 21 and over in neighbor state Oregon.
If the legal retail points aren't there, it becomes easy for consumers to turn to black market retailers.

4. Jurisdiction problems in select U.S. states
Fourthly, the fact that legalized states have allowed municipalities to decide whether cannabis retail stores can open or not has also been a serious problem.
In Canada, the passage of the Cannabis Act made marijuana legal throughout the country, so this particular issue isn't of concern to our neighbor to the north. But in states like California and Colorado, statewide legalization looks more like Swiss cheese rather than a unified decision passed by voters.
In California, close to 80% of the 482 municipalities in the state have banned commercial marijuana activity. Although the Golden State's significantly higher population cities have given marijuana retail stores a green light, it's still left plenty of the state as sort of a no-go zone for pot. With such a large percentage of municipalities failing to OK licensed dispensaries, it's opened the door for the black market to flourish.

5. Regulatory enforcement has been spotty
Last, but not least, regulatory enforcement designed to drive the black market out of business hasn't exactly been working. Based on data from the United Cannabis Business Association, via an audit that was recently turned into California Gov. Gavin Newsom (D-Calif.), 2,835 of the 3,757 listings of marijuana sellers in California on website WeedMaps were unlicensed. Although the state has promised to step up enforcement on illicit producers, it's yet to do so.
Enforcement has been a bit tougher in Canada, where CannTrust Holdings (NYSE:CTST) was recently taken to the woodshed. CannTrust announced in early July that it had been growing marijuana in five unlicensed grow rooms for a period of six months. This admission led regulatory agency Health Canada to suspend CannTrust's cultivation and sales licenses in mid-September. CannTrust also announced this past week that it would destroy roughly $58 million worth of plants and inventory from its illicit grow rooms in an effort to regain its licenses. With Health Canada making an example out of CannTrust, it's at least a step in the right direction toward tougher enforcement in our neighbor to the north.
Long story short, the black market isn't going anywhere anytime soon.

 

[Baron23]

Who is impacted if marijuana is reclassified as a Schedule II Drug


treat anorexia in HIV patients along with the most recently approved drugs Epidiolex[iii] (cannabidiol) [CBD] to treat rare and severe forms of epilepsy and Syndros, a THC dronabinol substance like Marinol (except that it is marketed in liquid form rather than a pill) [iv] which became commercially available in the U.S. as a Schedule II substance. “It seems paradoxical that drugs like these, which contain elements of marijuana and serve the same purported purpose, are designated as Schedule II and III while botanical marijuana remains Schedule I.”[v]


If however the schedule I changes to II, several industries will be impacted. They include, but are not limited to, the synthetic marijuana pharmaceutical companies; the Canadian marijuana industry; the alcohol industry; the pharmaceutical industry in general; the drug testing industry, and, the government.


Some would think these big Pharma companies would be jumping for joy if marijuana were rescheduled to II. But big Pharma synthetic marijuana companies want to protect their monopoly and hold onto the synthetic marijuana industry. Epidiolex is manufactured solely by GW Pharmaceuticals;[vi] it is the first FDA-approved drug that contains a purified drug substance derived from marijuana. It is also the first FDA approved drug for the treatment of patients with Dravet syndrome.[vii] Syndros is marketed by Insys Therapeutics. These companies are the manufacturers and distributors of everything that has been FDA has approved and is currently on the market. “Big Pharma companies want botanical marijuana to remain illegal because it is financially beneficial to them, not because synthetic marijuana is decidedly better for patients.” [viii]


The fact that botanical marijuana is typically cheaper than synthetic marijuana makes the case. Drugs like Marinol are sold for $18 per 5 mg capsule, the equivalent of $3,600 per gram. In contrast, botanical marijuana can be obtained for $15 a gram, though potency and price of the plant can vary. For patients without insurance, legal botanical marijuana provides an affordable option to relieve their symptoms.[ix] Insys made huge contributions to the Arizona effort to pass a medical marijuana initiative in 2016 and has been deemed instrumental in stymieing that effort.[x] “Those supporting legalization speculated that Insys was attempting “to kill a non-pharmaceutical market for marijuana in order to line their own pockets.”[xi] “Pharmaceutical Research and Manufacturers of America (PhRMA) spent $19.7 million on lobbying against the legalization of both recreational and medical marijuana in 2016, according to the Senate Office of Public Records.” [xii]


That is not to say that the pharmaceutical industry in general would not profit if the reclassification does indeed occur. The pharmaceutical industry would likely have significant opportunities to develop new cannabinoid-based drugs for a multitude of medical conditions now being addressed by medical marijuana. For example, there is a growing body of evidence that marijuana is working for chronic pain.[xiii] “The pharmaceutical industry is salivating over trying to find products that will spare opioids or reduce exposure to opioids. Whether or not the pharmaceutical industry can produce a substance they can call a drug that would be approved for a pain indication remains the question,”[xiv]


Declassifying marijuana would also slow the continued growth of the behemoth marijuana Canadian companies. Medical marijuana has been legal in all of Canada since 2001 and recreational marijuana was up and running in October, 2018. This status has afforded the Canadian marijuana companies to trade on the stock exchange and has given them a “leg up” on U.S. marijuana companies. The American companies are only raking in one-tenth of the revenue that Canadian marijuana companies. “Two of the largest Canadian marijuana corporations, Canopy Growth Corp. and Aurora Cannabis, have respective market caps of $5.51 billion and $3.28 billion, whereas the largest among the American corporations, Terra Tech Corp. and Kush Bottles, have only achieved respective market caps of $122.98 million and $342.79 million.[xv]


As the world marijuana companies are growing they are being eyed by the world alcohol industry. “The former chief executive of one of North America’s top beer makers says it’s only a matter of time before all alcohol companies are involved in the cannabis industry.”[xvi] Thus far Constellation Brands has bought an interest in Canopy Growth, the largest Canadian marijuana company to the tune of a 9.9% interest for 245 million Canadian dollars ($190 million), plus options to raise its stake to just under 20%., [xvii] “Molson Coors Brewing selected The Hydropothecary… and Diageo, the maker of Guinness beer and Smirnoff vodka, has been in talks with at least three Canadian marijuana growers.”[xviii]


While the alcohol industry may benefit on one hand with taking a literal interest in Canadian marijuana companies, they may be negatively impacted on the other. Both The Boston Beer Co., maker of Samuel Adams and Jack Daniel’s-maker Brown-Forman have stated in their SEC statements and filings that the marijuana industry may negatively impact their bottom line.[xix] Interestingly however one study found that “individuals who use both cannabis and alcohol tend to use them at the same time and simultaneous use was associated with increased frequency and quantity of alcohol use.[xx]


With respect to the drug testing industry, according to a bcc Research Report, “the global drug of abuse (DOA) testing market reached nearly $3.0 billion in 2016. This market is estimated to grow at a compound annual growth rate (CAGR) 4.5% to reach nearly $3.9 billion by 2022 from $3.1 billion in 2017.”[xxi] “The industry CAGR of 4.5% through 2022 is expected with urine and blood tests remaining market leaders. Increasing use of saliva tests may see a sharper growth in that emerging segment, the report concluded.”[xxii] “Onsite testing by law enforcement and first responders is a smaller market, compared with laboratory-based complex testing, but growth has been steady as employers or state laws dictate a drug-free workplace.”[xxiii] Federal drug tests are mandatory for millions of federal workers which also adds to the uptick for the drug testing industry.[xxiv] If marijuana is reclassified or the pending Fairness in Federal Drug Testing Under State Laws Act (H.R. 6589) bill which will end mandatory drug testing for federal workers is passed,[xxv] it could negatively impact this industry and over time this policy could bleed over to the entire workplace testing scenarios.


Lastly, although the government would benefit from increased tax revenue, it would lose the tax deductions revenues that are not now permissible for marijuana businesses. One analysis shows that if marijuana were fully legal in all 50 states, it would create at least a combined $131.8 billion in federal tax revenue between 2017 and 2025. [xxvi]That is based on an estimated 15% retail sales tax, payroll tax deductions and business tax revenue.[xxvii] “Allowing marijuana businesses to take normal deductions was expected to cost the federal government $5 billion in tax revenue over the next decade.”[xxviii]


Does this outcome change if marijuana is entirely removed from the Control Substances Act? That is another topic to be explored.

 

[Baron23]

Truly contemptible.


Cannabis arrests are on the rise - again

While more U.S. states continue to legalize marijuana, more U.S. citizens keep getting arrested for marijuana-related crimes. FBI crime statistics show that, for the third year in a row, the number of marijuana-related arrests increased in 2018.

How is that possible? The crime stats from the FBI don’t offer an explanation, only raw data. However, it was clear that arrests have increased in areas where marijuana is not yet legal.

In the West, where many states have legalized cannabis, marijuana possession arrests accounted for only 13.4 percent of all such arrests nationwide. It’s a different story in other parts of the country, however, with the most arrests happening in the Northeast (48.9 percent), with the Midwest (45.8 percent) and the South (44.8 percent) not far behind.

Cannabis Advocates See It As A Waste Of Taxpayers’ Money
Condemnation of the new numbers was swift. For example, NORML Executive Director Erik Altieri issued a statement pointing out that the numbers indicate a marijuana-related arrest happens about every 48 seconds in the United States.

“At a time when the overwhelming majority of Americans want cannabis to be legal and regulated, it is an outrage that many police departments across the country continue to waste tax dollars and limited law enforcement resources on arresting otherwise law-abiding citizens for simple marijuana possession," Altieri said.
Altieri's right about the “majority of Americans,” if the polls are to be believed. For example, Gallup found in 2018 that two out of every three Americans supports legalization of marijuana. That is a new high for Gallup, which has asked this same question about the issue for a half century.

The FBI Numbers Showed About 4,000 More Arrests Overall
The FBI data showed that an estimated 663,367 cannabis-related arrests happened in 2018. In 2017, that number was 659,700. About 90 percent of the arrests were for possession, according to NORML.

Sheila Vakharia, deputy director for academic engagement at the Drug Policy Alliance, told Leafly that the numbers are “incredibly disheartening.” She said that the numbers show that marijuana continues to be “the lowest-hanging fruit for drug policing in the United States.”

The organization Cage-Free Cannabis, which attempts to repair some of the damage of the War on Drugs by working to expunge the arrest records of those convicted on marijuana charges, went even further. The group emailed a statement to Leafly saying the numbers showed that “The War on Drugs isn’t over. The war on cannabis consumers and patients isn’t even over: it’s escalating, and we know from past experience that it’s disproportionately affecting communities of color.”

 

[Baron23]

"Studies have shown that those under the influence of cannabis can experience impaired body movement, altered senses, difficulty with thinking and problem-solving, impaired memory, an altered sense of time, changes in mood, and – when taken in high doses – hallucinations and delusions."​

​

Thousands of years of experience has taught humanity that being drunk can "impaired body movement, altered senses, difficulty with thinking and problem-solving, impaired memory, an altered sense of time, changes in mood, and – when taken in high doses – hallucinations and delusions."

But nobody objects to employees drinking on the job, right? And how about 'dem Perocets and Oxi's...hmm?


National Safety Council: cannabis not acceptable in safety sensitive jobs

The National Safety Council calls on employers to restrict cannabis use for those in safety sensitive positions – regardless of whether cannabis consumption is allowed by their state.

Recognizing that safety concerns are paramount as decriminalization of cannabis continues in states throughout the US, the National Safety Council have released a policy position, whereby it defines safety sensitive positions as those that impact the safety of the employee and the safety of others as a result of performing that job.

Lorraine M. Martin, president and CEO of the National Safety Council, said: “Research clearly shows that cannabis impacts a person’s psychomotor skills and cognitive ability.
“In order to protect our employees and those around them, we need to acknowledge the impairing effects of cannabis. We urge employers to implement policies stating no amount of cannabis consumption is acceptable for those who work in safety sensitive positions.”

National Safety Council concerns
In a 2019 NSC survey, employers expressed the following about cannabis:

• 81% were concerned about the drug having a negative impact on their workforce;
• 71% indicated their organization’s written policies cover employee use of illicit cannabis, while only 54% said their policies cover employee use of legal or prescribed cannabis; and
• 24% indicated they would dismiss an employee found to be misusing legal cannabis, such as being under the influence while on the job, while only 7% said they would relocate the employee to a position of lesser responsibility.

Studies have shown that those under the influence of cannabis can experience impaired body movement, altered senses, difficulty with thinking and problem-solving, impaired memory, an altered sense of time, changes in mood, and – when taken in high doses – hallucinations and delusions.

Physical effects can include difficulty breathing and increased heart rate. These effects can lead to deadly consequences for those working in safety sensitive positions and those around them. NSC supports moving employees to non-safety sensitive operational positions when using cannabis for medical purposes.

Marijuana is the most frequently used illicit drug of abuse in the US and the drug most often detected in workplace drug testing. Although cannabis remains federally illegal under the Controlled Substances Act as a Schedule I drug, the National Safety Council calls for an increase in cannabis research to discover a way to detect cannabis impairment and gain a better understanding of the effects the drug has on the human mind and body.

 

[Baron23]

When I read about abject stupidity like this, I despair for the future of the human race.

Fentanyl - white powder

Marijuana - green plant

sigh


Bulletin warns law enforcement agencies against fentanyl disguised as weed

A local television news station in Utah reported on Tuesday that a bulletin has been issued to law enforcement agencies warning officers of the dangers of fentanyl “disguised to look like marijuana.” Citing an “internal law enforcement bulletin” of unidentified origin, KUTV in Salt Lake City reported in an online written story that instances of fentanyl disguised to resemble cannabis has become a “trend” and that law enforcement agencies “across the country” were being warned of the potential dangers.

In a video report of the story, reporter Jim Spiewak of KUTV, Salt Lake City’s CBS affiliate, said that his information had come from a law enforcement bulletin that had originated in Ohio, although he did not say when it had been issued. Spiewak said that the bulletin, which “was for police officer eyes only, pretty much,” had been shared with him by an unidentified source.

Spiewak reported that law enforcement officers had encountered fentanyl that had been “designed to look like pot, but it’s much more dangerous” and that samples recovered by police “weren’t marijuana at all.” No indication of how such a feat could be accomplished was given.

The local television news report also displayed photographs of what appeared to be cannabis that Spiewak said had come from the bulletin, which he said was titled simply “Officer Safety,” while giving no indication of its source. No text from the bulletin was shared.

“For security reasons, we had to redact the narrative,” said Spiewak less than convincingly.

DANGEROUS DISGUISE: What looks like weed tested positive for fentanyl, heroin, Tramadol, and traces of meth. https://kutv.com/news/local/it-looks-like-weed-but-its-not-law-enforcement-warn-of-fentanyl-disguised-as-cannabis-10-22-2019 …

It looks like weed, but it's not: Law enforcement warn of fentanyl disguised as cannabis
A dangerous and deadly drug is popping up disguised to look like marijuana. KUTV. 2News obtained an internal law enforcement bulletin describing the trend. The bulletin warned law enforcement..

Utah Police Now On the Lookout
The reporter noted that he had “reached out to multiple police departments” about any potential discoveries of fentanyl disguised to like cannabis that may have been made in Utah.

“They tell me they haven’t seen it. Yet,” Spiewak reported ominously.

Sgt. Brandon Shearer of the Salt Lake City Police Department said it may just be a matter of time before the drug is found locally.

“When you start seeing something anywhere in the U.S., there’s a good chance it’s going to spread across the country,” said Shearer.

“You don’t know where it came from, you don’t know how it was made, and you’re really taking a huge personal safety risk by taking those substances in,” Shearer added.

Really?
As early as two years ago, news stories of cannabis that had been laced with fentanyl began making headlines, but this may be the first time fentanyl disguised to look like cannabis has been reported, albeit rather dubiously.

Efforts to reach Spiewak via telephone and social media for more information about the law enforcement bulletin were unsuccessful. Perhaps he’s busy working on a story about all the cannabis edibles that are rumored to be given out to trick-or-treaters this Halloween.

 

[ClearBlueLou]

When I read about abject stupidity like this, I despair for the future of the human race.

Fentanyl - white powder

Marijuana - green plant

sigh


Bulletin warns law enforcement agencies against fentanyl disguised as weed

A local television news station in Utah reported on Tuesday that a bulletin has been issued to law enforcement agencies warning officers of the dangers of fentanyl “disguised to look like marijuana.” Citing an “internal law enforcement bulletin” of unidentified origin, KUTV in Salt Lake City reported in an online written story that instances of fentanyl disguised to resemble cannabis has become a “trend” and that law enforcement agencies “across the country” were being warned of the potential dangers.

In a video report of the story, reporter Jim Spiewak of KUTV, Salt Lake City’s CBS affiliate, said that his information had come from a law enforcement bulletin that had originated in Ohio, although he did not say when it had been issued. Spiewak said that the bulletin, which “was for police officer eyes only, pretty much,” had been shared with him by an unidentified source.

Spiewak reported that law enforcement officers had encountered fentanyl that had been “designed to look like pot, but it’s much more dangerous” and that samples recovered by police “weren’t marijuana at all.” No indication of how such a feat could be accomplished was given.

The local television news report also displayed photographs of what appeared to be cannabis that Spiewak said had come from the bulletin, which he said was titled simply “Officer Safety,” while giving no indication of its source. No text from the bulletin was shared.

“For security reasons, we had to redact the narrative,” said Spiewak less than convincingly.

Utah Police Now On the Lookout
The reporter noted that he had “reached out to multiple police departments” about any potential discoveries of fentanyl disguised to like cannabis that may have been made in Utah.

“They tell me they haven’t seen it. Yet,” Spiewak reported ominously.

Sgt. Brandon Shearer of the Salt Lake City Police Department said it may just be a matter of time before the drug is found locally.

“When you start seeing something anywhere in the U.S., there’s a good chance it’s going to spread across the country,” said Shearer.

“You don’t know where it came from, you don’t know how it was made, and you’re really taking a huge personal safety risk by taking those substances in,” Shearer added.

Really?
As early as two years ago, news stories of cannabis that had been laced with fentanyl began making headlines, but this may be the first time fentanyl disguised to look like cannabis has been reported, albeit rather dubiously.

Efforts to reach Spiewak via telephone and social media for more information about the law enforcement bulletin were unsuccessful. Perhaps he’s busy working on a story about all the cannabis edibles that are rumored to be given out to trick-or-treaters this Halloween.

Weed processed to make it LOOK and SEEM like marijuana - if factual - is a murder attempt, potentially a terrorist-style wide-scale attack, and on cannabis users. I seriously doubt some “lone wolf” decided to order a bunch of fentanyl and use it to kill stoners....