Despite favorable poll numbers, North Dakota’s Issue 3, an adult-use cannabis legalization ballot measure, failed Nov. 6. Voters shot the issue down by a wide margin of 60 to 40.
The measure would have immediately decriminalized cannabis for adults 21 and older, and the ballot language included a directive to seal all past records of cannabis-related crimes in the state. “This model is 100-percent plug-and-play,” David Owen, chairman of Legalize ND, toldCannabis Business Times earlier this year.
Voters, who approved a medical marijuana law in 2016, did not support the mission and intent of Legalize ND.
"I’m very pleased that the people of North Dakota have rejected this wild measure that was so poorly drafted," Bob Wefald, chair of North Dakotans against the Legalization of Recreational Marijuana, told the Bismarck Tribune. "It was such an overreach; it would’ve been a disaster for the state of North Dakota had it passed." (Wefald also told the newspaper that he’s open to supporting a a more limited decriminalization policy in the future.)
North Dakota failed to join Michigan in that state’s successful attempt to bring cannabis reform into the geographic heart of the country.
Top photo courtesy of Adobe Stock
Michigan Legalizes Adult-Use Cannabis
The news will bring the Midwest its first adult-use cannabis market, likely sometime in 2020.
Michigan voters approved Proposition 1, legalizing recreational cannabis, by a neat 56-44 margin, according to unofficial election results. The voter approval marks Michigan as the first state in the Midwest to legalize adult-use cannabis—and the 10th state in the country to do so.
"The Proposal 1 campaign boiled down into one of fact versus fear," Coalition to Regulate Marijuana Like Alcohol spokesman Josh Hovey said in a public statement following the win.
New York Times election results, as of Nov. 7
In the immediate sense, the vote is indeed an historic milestone for cannabis reform in the U.S. Michigan residents 21 and older will soon be able to carry 2.5 ounces of cannabis on their person—and possess 10 ounces of cannabis at home. Ultimately, cannabis retail sales will be tagged with the state’s 6-percent sales tax and a 10-percent excise tax. Municipalities may opt out of future cannabis sales, which is the case with the state’s medical marijuana market, as well.
But there are plenty of initial steps that need be taken before this adult-use market becomes reality.
“It’s not going to be an earth-shattering change,” Jeffrey Hank, an attorney who helped get the ballot measure in front of voters, told the Detroit Free Press. For now, it’s a matter of decriminalization. “Adults will no longer be arrested for simple possession and use of marijuana.”
As the newspaper reports, the state won’t likely see an operational adult-use cannabis market until 2020. Following approval of Proposition 1, the state must design a regulatory scheme and issue licenses to cannabis businesses.
Even today, the state’s Department of Licensing and Regulatory Affairs is in the midst of a protracted medical marijuana licensing process. (Court of Claims Judge Stephen Borello halted an Oct. 31 deadline for medical marijuana businesses to be licensed; he’ll provide an update in that case on Nov. 9.)
“Proposal 1’s passing in Michigan is a major domino for the cannabis movement and freedom in general," Jeffrey M. Zucker, President and Co-Founder of Green Lion Partners, told Cannabis Business Times. Michigan has the opportunity to set the example for the remainder of the Midwest while bringing in tremendous tax revenue for schools, governments, and infrastructure. It wouldn’t be surprising to see nearby states like cash-strapped Illinois move this way in the near future.”
While the only other state with an adult-use question on its ballot this year, North Dakota, did not see success, the Michigan news is hailed as a bellwether of continued cannabis reform as industry stakeholders and cannabis business owners look ahead to 2019 and, inevitably, 2020. The margin of victory in Michigan and the growing national support for cannabis reform (66 percent, according to a recent Gallup poll, points to more good news in the offing.)
"This is yet another historic election for the movement to end marijuana prohibition," Steve Hawkins, executive director of the Marijuana Policy Project, said in a public statement. "Voters have once again sent a message loud and clear that it is time to legalize and regulate marijuana. The victory in Michigan highlights just how widespread support is for marijuana policy reform. This issue does not only enjoy strong support on the coasts, but also in the Midwest and all throughout the country. Marijuana has now been legalized for adult use in one out of every five states, so I think it's safe to say federal laws are in need of an update. We hope the results of this election will inspire Congress to finally start addressing the tension that exists between state and federal marijuana laws in our nation."
Top photo courtesy of Adobe Stock
California Bureau of Cannabis Control Announces Request for Proposals for Public Awareness Campaign
The BCC is seeking proposals to develop a two-year statewide public awareness and education campaign related to the licensure of commercial cannabis businesses in California.
SACRAMENTO – PRESS RELEASE – The Bureau of Cannabis Control has announced that it is seeking proposals to develop a two-year statewide public awareness and education campaign related to the licensure of commercial cannabis businesses in California. Campaign development will include effective branding, media planning, strategy development and a robust communications plan. The campaign will focus on informing the cannabis industry and the public about the benefits of licensing, how to identify licensed businesses and the dangers of cannabis activity by unlicensed businesses.
To find out more about the specifics of the Bureau’s Request for Proposal (RFP) and how to submit a proposal, you may review it online at the California State Contracts Register (CSCR) Cal eProcure web site at: https://caleprocure.ca.gov/pages/index.aspx. To ensure receipt of any addenda that may be issued regarding the requirements, and the Bureau’s answers to any questions about the RFP, you must register online at https://caleprocure.ca.gov/pages/. The Bureau of Cannabis Control cannot provide questions to answers outside of the process outlined within the RFP.
The final date for proposal submission is Tuesday, Nov. 20, 2018 at 3:00 p.m. PST.
Federal Investigators Seize Cannabis Plants on Nearly 200 Acres in California
The grow was described as "one of the biggest marijuana grows ever seen in the Central Valley."
Federal investigators and Merced County sheriff’s deputies on Monday announced the seizure of hundreds of thousands of marijuana plants over 194 acres on Dos Palos farmland.
“This is an unprecedented grow and at this time we are actively investigating it,” Merced County Sheriff Vern Warnke told reporters at a news conference.
The sheriff said a search warrant was authored by the DEA as well as the Merced County Sheriff’s Office.
The grow, located in the area of Hutchins Road and Palm Avenue in Dos Palos, was described by deputies as “one of the biggest marijuana grows ever seen in the Central Valley.”
Puration Inc. Publishes Telluride Health Company Acquisition Shareholder Presentation
Puration released an online presentation with details on the recent acquisition and the plans for integrating the operation into PURA’s overall cannabis beverage business model.
DALLAS, Nov. 05, 2018 (GLOBE NEWSWIRE) -- via OTC PR WIRE -- PRESS RELEASE -- Puration, Inc. has released an online presentation with details on the recent acquisition of the Telluride Health Company and the plans for integrating the operation into PURA’s overall cannabis beverage business model. The presentation includes an explanation of how PURA fits into the ACI Conglomerated portfolio in conjunction with ACI’s other holdings, North American Cannabis Holdings (USMJ), Priority Aviation (PJET) and Nouveau Life Pharmaceuticals (NOUV). The presentation is available on the company’s website. The narrative from the presentation is included in its entirety below.
PURA’s Telluride Health Company Acquisition and The ACI Family
The Telluride Health Company is the brain child of a group of college students that are active cannabis community participants. They developed Telluride Happy Water to enhance the cannabis experience by consuming Telluride Happy Water before partaking or otherwise using Telluride Happy Water in their water pipe. The group produced a pilot quantity of Telluride Happy Water and tested within their own network and by knocking on the doors of retail cannabis shops and setting up trials with the cannabis shops clients. They decided to position Telluride Health Company in a public holding company in order to get access to financing to take Telluride Happy Water into production. That’s how Telluride Health Company came to Priority Aviation, Inc. The public company learning curve has been steep for the group and getting into production has taken longer than anticipated.
“I’m very happy to have Telluride Health Company become part of the Puration family,” said Yasmine Acebo, president of Telluride Health Company. “Leveraging Puration’s experience in the public company arena and in producing beverages frees us up to focus on sales and marketing of Telluride Happy Water.”
“The Telluride Health Company team has a wonderful product in an absolutely unique space,” said Brian Shibley, CEO of Puration. “We have not found another designer water-pipe water on the market. Telluride Happy Water, as far as our research indicates, has no competitors and plenty of demand. We’ve already started production of Telluride Happy Water and expect to have it on shelves before the end of the year.”
Telluride Happy Water has a higher level of dissolved oxygen in it than almost any bottled water on the market. A patented technology and formula reduces the size of water molecules which creates a platform that accelerates the uptake of anything mixed with or filtered through the patented water technology. This is how the product exponentially increases a cannabis high.
The cannabis-infused edibles market is projected to make up a $2.3-billion market in 2018 and to become a $5.3-billion market within the next five years, according to data from cannabis market research firm Brightfield Group.
ACI Conglomerated
The majority shareholder of Puration, Inc. is a private company called ACI Conglomerated. ACI also owns the majority interest of North American Cannabis Holdings, Inc. ACI now also owns the majority interest of PJET and anticipates soon owning control of Nouveau Life Pharmaceuticals (NOUV). PJET is now being repurposed in conjunction with owning and operating the AmeriCanna Cafe, acquired from USMJ. NOUV is being repurposed in conjunction with owning the cannabis cultivation operations it acquired from PURA. ACI’s mission is to invest in and grow a portfolio of cannabis enterprises.
ACI Conglomerated
The majority shareholder of Puration, Inc. is a private company called ACI Conglomerated. ACI also owns the majority interest of North American Cannabis Holdings, Inc. ACI now also owns the majority interest of PJET and anticipates soon owning control of Nouveau Life Pharmaceuticals. PJET is now being repurposed in conjunction with owning and operating the AmeriCanna Cafe, acquired from USMJ. NOUV is being repurposed in conjunction with owning the cannabis cultivation operations it acquired from PURA. ACI’s mission is to invest in and grow a portfolio of cannabis enterprises.
The ACI management team strategy is to efficiently operate the portfolio of cannabis enterprises in a manner that enhances the shareholder value of each company in the portfolio. The portfolio company business models all over lap leveraging resources and market segments one from the other. The ACI approach is unique in the cannabis sector and sets the portfolio companies apart from their competition.
Legislative Map
Cannabis Business Times’ interactive legislative map is another tool to help cultivators quickly navigate state cannabis laws and find news relevant to their markets. View More