Rhode Island Gov. Gina Raimondo released a state budget plan Jan. 16 that includes a proposal to legalize adult-use cannabis and distribute the products through state-run retailers.
The $10.2-billion tax-and-spending plan would take effect for the fiscal year beginning July 1, according to a Providence Journal report.
The state’s cannabis shops would be operated by private contractors, the news outlet reported, but the state would control the location, price, potency and quantity of sales. The state would receive 61% of the net revenue generated, while the private operators would receive 29% and the host communities would receive 10%.
Raimondo projects that adult-use cannabis sales would begin March 21, 2021, and generate $70 million in sales over the last four months of the fiscal year, according to the Providence Journal. The tax revenue would go toward law enforcement, the Rhode Island Department of Health and educators.
To oversee the industry, 13 regulators would be appointed to the state’s Office of Cannabis Regulation, the Providence Journal reported.
Raimondo’s proposal would allow adult-use customers to purchase one ounce of cannabis per day and place a 50% THC cap on all adult-use cannabis products, according to the news outlet.
This is the second year Raimondo is including adult-use cannabis legalization in the state budget; she introduced a similar proposal last year, which was ultimately unsuccessful.
This year’s proposal is also likely to face pushback, the Providence Journal reported.
“At first glance, there are many areas of the budget that we can work together on to improve our state,” Senate President Dominick Ruggerio told the news outlet. “I am disappointed that revenue from the proposed legalization of recreational marijuana was included in the budget proposal. Seeing as the marijuana proposal is unlikely to pass, we effectively have a proposed budget that is out of balance."
Oregon Liquor Control Commission Issues Marijuana Product Recall
Portland, OR -- PRESS RELEASE -- The Oregon Liquor Control Commission is issuing an immediate health and safety advisory due to the identification of potentially unsafe pesticide residue on plant material used in a packaged retail marijuana product. The product in question was cultivated by licensed marijuana producer Ard Ri and packaged for sale to retailers by licensed wholesaler DYME Distribution.
The affected marijuana flower failed its pesticide test, because it exceeded the acceptable level, known as the “action limit”, for the insecticide Imidacloprid. The flower was incorporated into pre-rolled joints marketed under the Winberry Farms Sweet Leaf Blend; the strain name is Trap Star.
The impacted product has a Unique Identification (UID) number of 1A4010300022859000015892.
The OLCC has locked down the product in the Cannabis Tracking System (CTS) to prevent further distribution or sale to consumers. The product was sold through nine OLCC licensed marijuana retailers around Oregon. DYME distributed approximately 700 units of the contaminated pre-rolls; retailers have pulled the remaining 328 packages from their shelves.
The impacted Winberry Farms Sweet Leaf Products were sold from Dec. 17, 2019 through Jan. 8, 2020 at the following licensed retailers:
Spark, 5103 NE Fremont Street, Portland
Ancient Remedies, 2350 State Street, Salem
Puff Oregon, 47700 NW Sunset Highway, Manning
Rogue River Herbal PMC, 510 East Main, Suite C, Rogue River
The Joint, 3270 Market Street NE, Salem
Stoney Only Clackamas, 10289 SE Highway 212, Clackamas
Tsunami Marijuana LLC, 36412 Highway 26, Seaside
Track Town Collective, 3675 Franklin Blvd., Eugene
Green Room, 2521 NW 9th Street, Corvallis
Initial test results for the source marijuana flower produced by Ard Ri was entered into CTS by PREE Laboratories in Corvallis on Dec. 4, 2019; the test results indicated that both test samples failed. PREE re-analyzed one of the samples, as allowed under marijuana testing rules, on Dec. 11, 2019 and the sample passed. However, marijuana testing rules then require a second lab to re-sample and re-test the original product. That verification test never took place.
Because of PREE Laboratories’ incorrect entry of test results into CTS, the tracking system designated the marijuana flower as having passed its pesticide test. Subsequently, DYME Distribution packaged and distributed the contaminated marijuana as pre-rolled joints.
The OLCC detected the discrepancy Jan. 6, 2020 when conducting a monthly audit on products that have failed pesticide tests at the point of origin – in this case the marijuana flower. When the OLCC initiates an administrative hold of a product, it automatically puts a hold on any product produced from the original flower.
OLCC is investigating both the contamination test failure, and the licensees’ use of CTS.
Consumers who have these recalled products should dispose of the products or return them to the retailer where they were purchased. Consumers can follow these instructions found on the OLCC Recreational Marijuana Program website to destroy marijuana on their own.
There have been no reports of illness. The possible health impact of consuming marijuana products with unapproved pesticide residues is unknown. Short- and long-term health impacts may exist depending on the specific product, duration, frequency, level of exposure and route of exposure. Consumers with concerns about their personal health should contact their physician with related questions. Consumers with questions or concerns about recalled product or pesticide residues in marijuana products are encouraged to contact the product retailer and/or the Oregon Poison Center at 800-222-1222.
The Oregon Department of Agriculture maintains a guide list for Pesticides and Cannabis that be found here.
Gary/Adobe Stock
Congressional Committee Hearing Navigates the Catch-22 of Cannabis Research
The far-reaching committee hearing was convened to discuss six cannabis reform proposals currently undergoing congressional consideration.
On Wednesday, members of the U.S. House of Representatives’ Energy and Commerce Committee’s Subcommittee on Health held a hearing on the future of cannabis regulation. Titled “Cannabis Policies for the New Decade,” the meeting included testimony from committee members and three witnesses: Director of the National Institute on Drug Abuse (NIDA) Nora Volkow, DEA Senior Policy Adviser Matthew Strait and FDA Deputy Director for Regulatory Programs Douglas Throckmorton.
The committee was convened to discuss six cannabis reform proposals currently undergoing congressional consideration:
H.R. 171 Legitimate Use of Medicinal Marijuana Act (LUMMA)
H.R. 601 Medical Cannabis Research Act of 2019
H.R. 1151 Veterans Medical Marijuana Safe Harbor Act
H.R. 2843 Marijuana Freedom and Opportunity Act
H.R. 3797 Medical Marijuana Research Act of 2019
H.R. 3884 Marijuana Opportunity Reinvestment and Expungement Act of 2019 (The MORE Act).
The ongoing congressional interest in cannabis policy reform after the Senate Caucus panel voted in favor of the MORE Act late last year is promising, to be sure, but arguments continued to highlight the contradictory policies surrounding cannabis research. Pressed by committee members, the witnesses repeatedly acknowledged that the current Schedule-I status of cannabis drastically hinders empirical research while, at the same time, continuing to push the “more research is needed” mantra that has kept policy progress at a stand-still.
"We're in the biggest catch-22 that you could ever see or imagine," U.S. Rep. Debbie Dingell (D-MI) said, summarizing much of the day’s conversation.
The need for research on publicly available product was on everyone’s radar. When asked by U.S. Rep. Frank Pallone (D-NJ) whether researchers should have access to the cannabis sold at state-licensed dispensaries, Strait responded that the DEA had announced 33 pending applications in August 2019 and that an agency team would be reviewing and discussing the draft regulation already in the pipeline this week.
Meanwhile, Volkow and Throckmorton were hesitant to jump on board the call for de-scheduling in light of the risk-focused research their government health agencies have been so keen to concentrate on, instead highlighting the need for improved but controlled access for researchers.
“Everyone up here has expressed the same concern: We need more research,” U.S. Rep. Buddy Carter (R-GA) said after insisting that cannabis is a “gateway drug.” He went on to press Strait on action items, next steps, policy implementation. “Tell us what we need to do. Mr. Strait, what do you need? Do you need a ‘Schedule-I-a’ that’s not going to have anything in this except for marijuana? That’s fine with me! I’ll create it. I’ll legislate that. But tell me what it’s going to take.”
Strait responded by pointing out a 150% increase in the number of Schedule-I cannabis researchers in the last five years. He referenced proposals from the NIDA and the DEA to streamline access to cannabis for researchers interested in the plant.
Not known for having the same deeply embedded conservative demeanor as the U.S. Senate, participating House committee members were vocal in demonstrating their collective cognitive dissonance over slow-moving federal agencies.
Amidst the expected, but only occasional, “gateway drug” myth mentions, important questions were raised. When questioned by U.S. Rep. Anna Eshoo (D-CA), the witnesses agreed that the single-source NIDA product coming from the University of Mississippi was inadequate, that researchers should be able to access a wider variety of products, and that there were real life consequences due to lack of access to public products.
U.S. Rep. John Sarbanes (D-MD) submitted a letter from the University of Maryland, whose Master of Cannabis Therapeutics program is the first of its kind, discussing their desire for better access to legal market products for research without fear of losing federal funding. This brought up the need for better medical education that teaches providers about cannabis. Volkow responded that the scientific community doesn’t yet know enough to develop these programs. No mention was made of including the study of the endocannabinoid system as core curriculum within medical courses.
Notable testimony came from U.S. Rep. Joe Kennedy (D-MA) who observed that federal policy still rests on the impediments and rhetoric created during the Nixon administration:
“Meanwhile, millions of Americans—mostly black and brown—have been locked up for non-violent drug offenses,” he said. “Meanwhile, desperate parents are forced to turn to a black market with no concern for patient safety to get their children the relief that they need. Meanwhile our cities and states are trying, and at times stumbling, to put in place thoughtful and thorough regulatory frameworks with zero support from federal partners. And meanwhile, a brand new corporate industry is rising up, rife with predictable economic injustices that spring up whenever government fails to regulate. Prohibition has clearly failed and America isn’t waiting for its government anymore.”
While the continued congressional dialogue around pushing forward cannabis legislation that opens up research access, patient access and helps repair the deep damage caused by the drug war is novel and important, it remains unlikely that this administration will see these needed changes through. What can be said after hearing legislators repeatedly ask why federal health agencies have not been able to work together to come up with a solution that allows research on products that people are already consuming right now, is that the lack of knowledge, research and regulation is more of a public health concern than the cannabis itself.
Digital editor Eric Sandy contributed to this report.
Paul | Adobe Stock
Appeals Court Rules that New Jersey Company Must Cover Employee’s Medical Cannabis Costs
With worker’s compensation ordered to cover medical cannabis, will private insurers follow suit in New Jersey and beyond?
An appeals court in New Jersey has ruled that an employer must reimburse a former employee for the cost of medical cannabis in a move that could have far-reaching effects for the industry.
In a ruling released Jan. 13, Superior Court Judge Heidi Willis Currier sided with Vincent Hagar, who was injured on the job in 2001 when a truck dumped concrete on him and left him unable to work.
Hagar was prescribed opioid painkillers as part of his recovery, which resulted in struggles with addiction, but Hagar was able to wean himself off the painkillers through the use of medical cannabis.
The costs associated with medical cannabis are generally not covered by insurance, however, due to federal prohibition, so Hagar was forced to cover the cost of his medication himself.
Hagar’s former employer, M&K Construction, denied his worker’s compensation claim for 15 years, according to court documents.
A worker’s compensation judge ruled in 2018 that Hagar had been injured on the job, and ordered M&K to reimburse him for the cost of medical cannabis and any related expenses, according to The Philadelphia Inquirer, but the company appealed, arguing that the federal Controlled Substances Act took precedence over New Jersey’s medical cannabis laws. The company also argued that it would be helping Hagar commit a crime if it covered his costs for cannabis, which is a Schedule I substance under the Controlled Substances Act.
These arguments did not persuade the appellate court, however; the court wrote that M&K was not purchasing or distributing the medical cannabis for Hagar, only reimbursing him for his legal use of it as a treatment for his injuries.
Courts in other states, such as Connecticut, New Hampshire and New Mexico, have also ruled that injured employees must be reimbursed for their medical cannabis costs, according to The Philadelphia Inquirer, but this marks the first ruling that dismisses employer’s arguments about running afoul of federal law.
Steve Schain, senior attorney at Hoban Law Group, views the New Jersey ruling as a monumental moment for the medical cannabis industry and its patients for other reasons, too; namely, that it may encourage private insurance companies—and perhaps even government insurance—to also cover medical cannabis.
“It’s not the first state to do it—I think there are six states that do it—but I can’t overstate the importance of all this,” he told Cannabis Business Times. “With Jersey accepting this, it’s yet one more state reimbursing for worker’s compensation, and it adds many more grains of sand to the scale to shift private health insurers and, ultimately, government health insurance to begin covering treatment with medical marijuana.”
Schain added that New Jersey is, in many ways, a bellwether state. “I think they’re a big influencer on law across the nation.”
Another major implication of this case, he said, is that it could help bolster medical cannabis programs across the country that have started to decline since the legalization of adult-use sales.
“Once you get adult-use, it tends to cross the medical market,” Schain said. “It’s just easier to go to adult-use. You can just show up—you don’t have to have a [medical] card, you don’t have to have a qualifying condition [and] you don’t have to see a doctor. On the medical side, it’s much more restrictive. With this development with reimbursement for medical coverage, it’s going to help out the medical programs."
Carlos Santana Partners with Left Coast Ventures to Launch Cannabis and Hemp CBD Brands
Legendary artist Santana is developing high-quality cannabis lines, inspired by spiritual consciousness and his Latin heritage.
SANTA ROSA, Calif., Jan. 15, 2020 /PRNewswire/ -- PRESS RELEASE -- Carlos Santana, the ten-time GRAMMY-winning and three-time Latin Grammy-winning guitarist and longtime cannabis advocate, has announced his partnership with Left Coast Ventures to develop premium cannabis and hemp CBD brands. Influenced by his Latin heritage, these lines will provide consumers with high-quality products designed to leverage the power of historical remedies and allow consumers to discover and follow their light.
Since the late 1960s, Santana has become synonymous with his signature sound, a fusion of world music, rock, blues and jazz that combines the timeless quality of rhythm, melody and inspiration that celebrate and define Latin music. Similarly, these brands will honor Santana's heritage while incorporating his divine philosophies by identifying strains and products that promote the spiritual consciousness and wellness effects of cannabis.
"Cannabis is a window or a door to different awareness of consciousness," said Santana. "It gives you the choice to perceive through a different filter of awakening and healing, the misperception of distance as an illusion, which keeps you from being centered in your essence-core. It helps you arrive at knowing, accepting and owning a quality of life that is being with joy!"
The cannabis brand is expected to launch the summer of 2020 and will be available in select dispensaries across California. Upon release, the line will include flower and pre-rolls. The hemp CBD brand will launch the fall of 2020 and will include topicals with traditional formulations inspired by Santana's own family.
Santana has partnered with Left Coast Ventures, a company that has launched cannabis brands with other iconic musicians, including Mind Your Head with Mickey Hart of the Grateful Dead and Marley Natural, a collaboration with the Bob Marley estate.
"We are excited to launch cannabis and hemp CBD brands that deeply respect Latin heritage and celebrate the unique light of every individual," said Left Coast Ventures CEO Brett Cummings. "It's a true honor to work with a dynamic legendary musician like Santana who has influenced millions through his music and shares our values and passion to legitimize the future of cannabis."
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Melissa Schiller
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