The Senate's vote on the bill legalizing industrial hemp was delayed until next week as Gov. Kristi Noem and legislators continue negotiating over the funding. The Senate deferred its vote on House Bill 1108 from Thursday to Monday. On Thursday, the Senate's party leaders said they're unsure the bill has the votes to pass because of concerns about funding the state's hemp program. "I believe there's a will to move forward, but there's a lot of details and circumstances and situations that need to be worked out," said Senate Assistant Majority Leader Jim Bolin, R-Canton. The Senate was unable to override Noem's veto of the industrial hemp bill last year and if it comes to another veto override vote in the Senate this year, Senate Majority Whip Jordan Youngberg, R-Madison, said the funding is the biggest issue and that will determine senators' votes. Funding the industrial hemp program in the state budget is the last piece that needs to fall into place. Noem directed the Legislature to adequately fund the program before she'll consider signing the bill, and negotiations between Noem and legislators over the budget amount were still ongoing on Thursday. When asked if a veto was on the table for the hemp bill, Noem responded on Thursday, "I anticipate that they will fully fund it." The Legislature's research department and state agencies released vastly different pictures of how they see the hemp program this week. The Legislature proposed a program through the Department of Agriculture with 1.6 staff and $245,000 in funding. The state Agriculture, Health and Public Safety departments proposed a program involving 15 additional staff and $3.5 million to cover new equipment and renovations to the state's lab and drug lockers. Hemp license and inspection fee revenue would partially cover the state's cost. The two estimates are far apart, but everyone is still at the table in the negotiations, said Rep. Oren Lesmeister, D-Parade. He said on Thursday that he doesn't anticipate Noem vetoing HB 1008, but it could happen if legislators don't come up with the funding. He said there hasn't been movement from the Governor's Office from its $3.5 million figure, but they're still in conversations about it. "It's just like anything this year when it comes to the budget, it's been tough. I hope we come to an agreement," Lesmeister said. House Majority Leader Lee Qualm, R-Platte, said he's "confident" legislators and Noem will be able to agree on a hemp budget. "It seems like you got to get into the 11th hour. So often that happens on issues like this. We come together and say, 'Absolutely, we can make this work,'" Qualm said. Legislators are coming from the perspective that few farmers will likely grow hemp this year if it's legalized. Additionally, voters will decide on two ballot questions about hemp, recreational marijuana and medical marijuana later this year that could change what the state needs to do. "Obviously, we need to have the funding in place to get the program up and get it going," Qualm said. "As far as everything else that the governor has asked for, I guess I just have questions about that. I don't think it's that necessary at this point in time."
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A company that operates a hemp farm plans to add an indoor growing operation at a redeveloped building in Milwaukee's Riverwest neighborhood. Wisconsin Growing Co. wants to grow 20 to 30 plants within about 5,000 square feet it's leasing at 3728 N. Fratney St., said Sam Santana, who operates the company. Wisconsin Growing has applied for a city permit to remodel space on the building's ground floor. Santana told the Journal Sentinel Thursday he hopes to begin the indoor growing operation as soon as possible. He wants to use the indoor growing operation to test the use of various nutrients, as well as genetic techniques, to grow better plants. Then, Wisconsin Growing would apply those lessons to its 30-acre farm near Whitewater, Santana said. The company plans to grow about 30,000 plants this spring and summer on its farm, he said. "Something we learned last year," Santana said. "You have one shot a year to get it right." The 2019 season marked Wisconsin Growing's first crop. It totaled around 15,000 plants, he said. Wisconsin Growing also managed a farm with around 125,000 plants for another owner, Santana said. "It gave us a lot of experience," he said. Hemp is a business that is gaining momentum in Wisconsin and other states. Hemp and marijuana are both genetically from the same plant: cannabis. Marijuana is illegal under the federal Controlled Substances Act — even though Illinois and other states have decriminalized it. Hemp is not a controlled substance — as long as it contains less than 0.3% of THC, the psychoactive compound in marijuana that produces a high when marijuana is smoked or ingested. Marijuana has a very high percentage of THC. Hemp is used to produce cigarettes and other substances with cannabidiol, also known as CBD. The U.S. Food and Drug Administration has not made a definitive ruling on the safety of CBD products. One challenge with growing hemp is to make sure the crop doesn't exceed that 0.3% threshold, Santana said. If that happens, hemp growers could have their crops seized and destroyed by law enforcement, said Trista Curzydlo, an attorney and consultant who spoke at a Monday seminar sponsored by the Commercial Association of Realtors-Wisconsin. Curzydlo's seminar, "Up In Smoke," focused on the benefits and risks from the hemp and marijuana industries for commercial building owners and managers. Wisconsin's hemp industry includes such companies as Milwaukee-based Vance Global Inc., which makes CBD cigarettes. Other businesses are processing and selling CBD products. Gov. Tony Evers in November signed legislation that removed hemp from the state's list of controlled substances. That came after then-Gov. Scott Walker in 2017 approved a law allowing farmers to grow hemp in Wisconsin for the first time in nearly 50 years. Meanwhile, Wisconsin Growing is among the latest in a series of businesses moving into the three-story, 52,300-square-foot Fratney Street building, which was remodeled last year by its new owners. Other new tenants include Natural Pet Food Co. and Cre8tive Live Studios LLC, according to building permit records.
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March 5, 2020
FDA pledges action against ‘unlawful CBD products’ while offering confidentiality for research
The U.S. Food and Drug Administration said it will continue to “take appropriate action against unlawful CBD products that pose a risk of harm to the public,” even as the federal agency implored the industry to collaborate with the government to study CBD’s possible benefits and dangers. The statement Thursday from new FDA Commissioner Dr. Stephen Hahn did not mention a timeline for when the agency will release CBD-usage guidelines, which businesses have been expecting for several months.
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After a massive first month of legalized cannabis sales in the state of Illinois that saw dispensaries rake in nearly $40 million, brisk sales continued in the month of February. According to totals released by the Illinois Department of Financial and Professional Regulation, total sales for the month of February amounted to just under $35 million. Dispensaries across the state sold 831,600 items over a 29-day period, according to the department. Illinois residents accounted for $25.6 million worth of sales, while out-of-state residents purchased nearly $9.2 million worth of cannabis products. “These numbers show there continues to be a strong demand across the state as the most equity-centric cannabis program in the country moves forward in Illinois,” Toi Hutchinson, Senior Advisor for Cannabis Control to Governor J.B. Pritzker, said in a statement. “As the adult use cannabis industry continues to grow, so will the number of opportunities for consumers and entrepreneurs alike, especially those from communities who suffered the most during the failed war on drugs.” Sales to out-of-state residents in the month of February actually outpaced numbers from January, as the state reported an increase of approximately $600,000 in sales to those who live outside of the state of Illinois. The state also reminded residents that the Department of Agriculture is accepting applications for cannabis infuser, craft grower and transporter licenses. Social equity applicants will receive additional points on their applications and are eligible to receive technical assistance, grants, low-interest loan and feed reductions and waivers, according to a press release. The deadline for applications is March 16.
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March 4, 2020
Medical marijuana in Kentucky? Senate leader not sure if he'll allow a hearing or a vote
A bill to legalize medical marijuana in Kentucky that passed the state House by a wide margin two weeks ago was finally assigned to a Senate committee on Monday, though its chairman is not sure if the legislation will receive a hearing and vote. "I know it won’t get a hearing until I’m OK with it, and for sure I’ve still got questions right now," said Sen. Whitney Westerfield, R-Hopkinsville, the chairman of the Senate Judiciary Committee. House Bill 136 would set up what has been described by both supporters and opponents as the most restrictive medical marijuana law in the country, allowing doctors to prescribe cannabis and patients to obtain it at approved dispensaries under state regulations. After a decade of failed attempts by medical marijuana advocates, HB 136 passed by a 65-30 vote in the House on Feb. 20, the first time either chamber had voted on such legislation. Nearly all Democratic members voted for the bill, along with a slight majority of Republicans. The large faction of socially conservative House Republicans who voted against the bill raised concerns about insufficient research on the health effects of marijuana use and the possibility it would be a slippery slope toward legalizing recreational marijuana. Westerfield told The Courier Journal he is poring over the bill and mentioned several areas of concern where he "would want to change or at least have someone explain to me why they’re in there in the first place.” The committee chairman specifically brought up questions about the legal definition of a designated caregiver for a medical marijuana patient and whether the bill would allow "people from other countries that have medical marijuana to get it here." Westerfield also said the government would be "putting a thumb on the market" in the bill by having a state department determine if a cannabis company has sufficient capital to maintain operations.
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March 4, 2020
Meet the new Boston Cannabis Board
Say hello to the city of Boston’s newest government agency: the Cannabis Board. Mayor Martin J. Walsh on Wednesday appointed five members to the board, which will issue local licenses to marijuana companies and advise Walsh’s office on cannabis regulation and policy. They are Kathleen Joyce, the chair of Boston’s Licensing Board and a former top lawyer at the Boston Planning and Development Agency; Monica Valdes Lupi, Boston’s former health commissioner; Darlene Lombos, the executive secretary-treasurer of the Greater Boston Labor Council; former Boston Police Department superintendent Lisa Holmes; and John Smith, the director of programs at TSNE MissionWorks, a nonprofit that provides meeting space plus management, training, and consulting services to other nonprofits. The members will serve two-year terms and be paid $600 for each day they work on behalf of the Cannabis Board, according to an executive order issued by Walsh. They are barred from working for or financially benefiting from any cannabis companies in the city. It was not immediately clear when the Cannabis Board will first meet; Walsh’s executive order creating the body says the mayor can designate one member to issue licenses to companies that have already signed a host community agreement with the city. “The purpose of Boston’s Cannabis Board is to make sure our actions continue to match our values: supporting equity, diversity and local ownership in this new industry,” Walsh said in a statement. “I’m proud to appoint these exceptional members to the Cannabis Board as we work to ensure every resident has access to the same opportunities in our growing city.” The announcement follows a 12-1 City Council vote in November approving an ordinance to overhaul the city’s much-criticized process for selecting which marijuana operators win coveted local permits that are required before companies can apply for licenses from the state Cannabis Control Commission. The measure, proposed by council president Kim Janey, is intended to increase the transparency and predictability of the process by having the board vote in public on applications using clear, weighted criteria. Previously, Walsh’s Office of Emerging Industries made those calls behind closed doors. The ordinance also establishes an equity program offering technical assistance and training for entrepreneurs who were arrested in the past for marijuana crimes, or who belong to groups or communities disproportionately targeted by police enforcing the prohibition of cannabis. The program would be funded with as much as $5 million in fees charged to marijuana operators over the next five years. The new board must approve equal numbers of such equity program participants and other firms seeking licenses. “I am excited by the appointment of the Boston Cannabis Board today," Janey said in a statement. “This board is so important to our City as it will bring a new, transparent and public facing process, focused on equity, for creating Host Community Agreements in Boston.” Boston’s first recreational marijuana store, Pure Oasis in Grove Hall, is expected to open within weeks.
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March 4, 2020
Pa. officials warn CBD still largely unregulated despite popularity of creams, oils, candies, and more
State officials warned Tuesday about the unknown risks of using products that contain CBD, which remains largely unregulated despite increasing popularity. While proponents claim CBD, or cannabidiol, derived from hemp can help ease chronic pain and anxiety, the federal government says there is little research into its benefits or potential harms. The head of the state Health Department said Tuesday “there are significant concerns about the quality, safety, and the content” of CBD products found at gas stations, grocery stores, and online. Unlike items at the state’s medical marijuana dispensaries, Pennsylvania does not test or regulate these CBD products. “Our supply chain is extremely, tightly regulated,” Secretary Rachel Levine told members of the House Health Committee. “None of that is true for the hemp-derived CBD products." The state has approved clinical research of CBD as part of the medical marijuana program. But there is a growing need, Levine said, for “more research about the benefits and side effects of CBD-rich medical marijuana and CBD medications from hemp.” Despite similar warnings nationwide, CBD products have exploded in popularity. That’s provided an opportunity for farmers looking for a new cash crop. Most hemp in Pennsylvania is grown for CBD. Fred Strathmeyer, a deputy secretary with the state agriculture department, said farmers may be eager to grow hemp for CBD for “quick dollars.” But, he added, “our sustainability will be in the fiber” — which can be used in building materials, clothing, and paper— “and not the CBD.” “We are trying to create a situation where our farmers succeed,” he said. “It’s all about success.” At the moment, the U.S. Food and Drug Administration has approved just one CBD product for medicinal purposes. “It is currently illegal to market CBD by adding it to a food or labeling it as a dietary supplement,” according to the agency. “Some CBD products are being marketed with unproven medical claims and are of unknown quality.” Natalie Krak, a policy director for the state Agriculture Department, said the agency only tests hemp for its THC threshold. “We have seen a proliferation of CBD products,” Krak said. “There is no consistent federal enforcement.” Robert Rudnitsky, executive director of the pro-cannabis group PhillyNORML, said it is crucial to regulate hemp-derived CBD as it is the only option for Pennsylvanians who cannot afford a medical marijuana card. “We want complete regulation," he told Spotlight PA. “Do we want our family and friends to buy CBD from gas stations? There is a lot of contaminated, foreign, counterfeit gray-market hemp.” While legalizing recreational cannabis was not the subject of Tuesday’s hearing, some lawmakers used the opportunity to raise concerns about Gov. Tom Wolf and Lt. Gov. John Fetterman’s support for legalization. “I’ll be upfront: I was a ‘no’ on medical marijuana — not because I didn't want to see people benefit from it, but because of the way it was done,” Rep. Jerry Knowles (R., Schuylkill) said. “But what is done is done.” With Wolf and Fetterman “hell-bent” on legalization, Knowles asked Levine if she’s concerned about what that would do to Pennsylvania’s medical marijuana program. “My goal with the medical marijuana program is to keep this medically and clinically based,” Levine said. “I did not want Pennsylvania to become Venice Beach. ... We have been able to thread that needle and keep this a very medically based program for patients with serious medical conditions.” She also noted that Wolf and Fetterman are championing marijuana legalization as a social justice issue, highlighting that many people are incarcerated for possessing small amounts.
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South Dakota lawmakers and Governor Kristi Noem floated vastly different cost estimates for legalizing industrial hemp on Tuesday, presenting a final hang-up to the resolution of their year-long dispute. The governor’s office argued that the legalization of industrial hemp would fundamentally change how the state enforces its marijuana laws and required an expansion of staff, drug testing, and law enforcement across three state agencies. Lawmakers cast it as an agricultural program similar to other crops that would require oversight by just one person and part-time testing by law enforcement. The divergence could threaten the Republican governor’s concession to go against her better judgement and sign a bill to legalize industrial hemp this year, but only if it meets her requirements, including funding for the program. Representative Oren Lesmeister, a Democrat from Parade and a proponent of hemp, said the governor’s office inflated the numbers based on a false presumption that drug cases would “sky-rocket” as a result of an industrial hemp program. He charged that the governor is using the high estimates as a tactic to thwart the bill. “It is how she wants to kill hemp,” he said. On Tuesday morning, Noem told a legislative committee that the program would need $3.5 million to cover the cost of 15 full-time positions, new testing equipment, four police dogs, and expanded drug storage space for the state’s drug lab and Highway Patrol. Lawmakers' estimates were more frugal: $250,000 for the program, with about $80,000 of that covered by licenses and fees paid by hemp farmers and processors. Noem's staffers indicated that the lower estimate would not meet her demands for the hemp program. The governor vetoed a bill to legalize hemp last year and made it clear she intended to veto the proposal this year because it could lead to the legalization of marijuana. But just before the session began, she changed her position and said she would allow industrial hemp if it is regulated by “four guardrails” to provide for enforcement, regulation, transportation permitting, and funding. The governor's office helped write this year's bill, and it meets the first three requirements. Secretary of Health Kim Malsam-Rysdon said hemp legalization would create an immediate need to expand the state’s drug testing lab storage space and equipment to determine if the THC levels in hemp rise above the 0.3 percent allowed by federal Department of Agriculture guidelines. THC is the compound that produces a high in marijuana. The legislator’s estimate is based on information from neighboring states such as Montana and Nebraska that rely on tests that only determine if cannabis has THC levels above 1 percent or send samples to out-of-state labs. House Majority Leader Lee Qualm, the Platte Republican who introduced the hemp bill this year, remained upbeat, saying he didn't think Noem would veto the bill and that hemp supporters would be meeting with the governor's office on Wednesday to work on the numbers. “I know we can cover it the first year for fairly minimal costs,” he said. “And then we'll have to revisit it next year and see what happens.” Qualm said farmers may not be able to plant a hemp crop this year, depending on weather conditions and how long it takes to get the state's plan approved by the USDA. He also pointed to a possible variable in the state's drug enforcement plans: referendums on recreational and medical marijuana that will be on the November ballot. Legislative leaders in the Senate have said they want to see the funding issue settled before voting on the hemp legalization bill.
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The latest effort to legalize marijuana in Ohio stems from frustration with Ohio's nearly four-year-old medical marijuana law. Supporters of the measure include at least twmedical marijuana businesses, a medical marijuana patient, a mother of twins with autism – a condition excluded from the program – and advocates for recommending cannabis in place of opioids. Supporters of the Regulate Marijuana Like Alcohol Amendment turned in the petition summary language and an initial 1,000 signatures to the Ohio attorney general on Monday. This is the first step in a months-long process to qualify for the November ballot. The constitutional amendment would allow adults over age 21 to buy, possess, consume and grow limited amounts of marijuana. Here are five things to know about the measure. Ohio's medical marijuana law was passed in 2016 but sales just began last year. The first year of sales lagged business projections and neighboring states. About 30% of registered patients haven't bought anything at an Ohio dispensary. Program rules have kept many patients from getting what they need. Tom Haren, a Northeast Ohio attorney representing supporters, said there were several catalysts in the medical program that led to the new adult use measure. "If you're a patient in Ohio, it's hard to participate in Ohio's medical marijuana program," said Haren, who has also represented medical marijuana licensees. "We were promised a program that worked." Haren confirmed Pure Ohio Wellness, a cultivator and dispensary operator in Springfield and Dayton, and Galenas, a small-scale grower in Akron, are backing the measure. Haren said other medical marijuana businesses support it but declined to name them on Monday. The Ohio Medical Cannabis Industry Association, which represents 14 Ohio companies, is not supporting the measure. “We’re focused on the medical program and at this time are not backing a recreational initiative,” association associate director Thomas Rosenberger said. The purchase and possession limit in the amendment is 1 ounce, with no more than 8 grams of concentrate. Adults could grow up to six plants (limit of three flowering plants) in an enclosed area – home grow is not allowed in the medical marijuana program. The state's nascent medical marijuana program would remain in place, and state officials would have to ensure patients still have access to products. The amendment wouldn't change laws against driving under the influence of marijuana or employers' rights to prohibit employee marijuana use.
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March 3, 2020
Utah opens first medical marijuana dispensary
The first medical marijuana dispensary in Utah opened on Monday as part of a recently implemented law allowing those with select health conditions to use the drug. The process involves first receiving a doctor’s recommendation from one of 60 approved health care providers and applying online in a patient portal to get a medical marijuana card, Rich Oborn, the director of Utah’s Center for Medical Cannabis, told the Associated Press. The first legal dispensary, Dragonfly Wellness, opened in Salt Lake City. A second dispensary is expected to open in March, with an additional seven opening by June and the last five in July, which will be called pharmacies. “We’ve got a number of different community advocates that have been fighting for patient rights and fighting for our community so that way people have a safer alternative to medicine,” said Narith Panh, the chief strategy officer on Dragonfly Wellness. “This is for them today, too.” Utah citizens voted to legalize marijuana for medical purposes in November 2018, making it the 33rd state to do so. Under the ballot initiative Proposition 2, patients with select health conditions can access marijuana for treatment with a doctor’s approval. Some of the conditions eligible for marijuana treatment will be chronic pain and cancer, as well as mental illnesses such as anxiety and post-traumatic stress disorder. Critics of the new clinics were reportedly assuaged with a compromise: that public health workers will not have to dispense the medication, as well as updating packaging to bring down costs. Wade Laughter, director of cannabis wellness at Dragonfly Wellness, emphasized that Utah’s legislation allows it to be a pioneer in legalizing marijuana exclusively for medical use. “To me, Utah, by its insistence on no recreational — we’re doing medical — there’s an opportunity for our culture to actually understand that it’s not just about getting high,” Laughter said.
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