Utah’s medical cannabis pharmacies should remain open through the coronavirus pandemic, considered essential because they supply the plant-based treatments that patients rely upon, according to state health officials. The state’s first marijuana retailer is continuing to serve patients, although it is asking people not to walk into the Salt Lake City pharmacy without pre-registering. And a second cannabis pharmacy, Perfect Earth Modern Apothecary in North Logan, is scheduled to open April 1, albeit without the fanfare its owners had wanted. “People had hoped to have a big grand opening and something exciting they could offer patients and a tour,” said Desiree Hennessy, head of the Utah Patients Coalition. That’s all out the window, she said, now that the state is focused on weathering a pandemic. Wait times have lengthened at the state’s first cannabis pharmacy, Dragonfly Wellness on State Street, because the business is limiting the number of patients permitted inside at any one time, Hennessy said. Customers are supposed to stay in their cars until they get the all-clear. But she said those precautions are critical to protect vulnerable patients who are already suffering from the condition that qualified them for medical cannabis — ailments such as cancer, HIV or AIDS and multiple sclerosis. The state has issued more than 1,000 patient cards since its medical program launched early this month and is reviewing many more, according to the Utah Department of Health. Nearly 1,400 patients are waiting for their medical provider to sign off on their application, many times because they need an in-person appointment with their doctors, said Rich Oborn, director of the state’s Center for Medical Cannabis. The coronavirus outbreak has bogged down this part of the process, Hennessy said, because some doctors are limiting in-person visits and state law requires a physical appointment as part of registering for a patient card. To loosen the bottleneck created by this registration system, state lawmakers decided to let patients use letters of recommendation from their physicians to buy cannabis until the year’s end. The legal revisions, which took effect earlier this week, are meant to relieve the pressure on the application process and give patients a few months to secure their state-issued cannabis cards. Christine Stenquist, a cannabis advocate who’s been critical of the state’s program, said COVID-19 is only exacerbating weaknesses in the system and further restricting patients’ access to treatment. Her belief is that the state should legalize the home growing of cannabis so patients don’t have to depend on a handful of pharmacies to meet their needs.
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March 27, 2020
Cannabis finds its moment amid coronavirus outbreak
Cannabis is turning out to be the one thing the coronavirus can’t destroy. Marijuana sales are booming, with some states seeing 20 percent spikes in sales as anxious Americans prepare to be hunkered down in their homes potentially for months. Weed sellers are staffing up too, hiring laid-off workers from other industries to meet demand. And in the midst of a historic market meltdown, stock prices for cannabis companies have surged, in some cases doubling since the public health crisis began. “We are hiring because we are having to shift our business a bit,” said Kim Rivers, CEO of Trulieve, which is valued at $1 billion. The company is staffing up its delivery fleet, retail workers, and people to handle increased inventory shipments. “Now is a great time [to apply], particularly if you’re in a business that has seen layoffs.” Nearly all of the 33 states with legal medical or recreational markets have classified marijuana businesses as an essential service, allowing them to remain open even as vast swaths of the retail economy are shuttered. San Francisco and Denver initially announced plans to shut down dispensaries, but immediately backpedaled after a public furor. Weed shops are essentially being treated the same as pharmacies, reflecting a dramatic shift in cultural perceptions about the drug over the last decade. “It is a recognition that it has taken on much greater significance around the country,” said Rep. Earl Blumenauer (D-Ore.), a longtime Capitol Hill champion for cannabis. “This is something that makes a huge difference to the lives of hundreds of thousands of people every day. I do think that this might be part of a turning point.“ Concerns about whether smoking pot is the smartest response to a pandemic that’s causing severe lung injuries in tens of thousands of Americans have been largely drowned out. "Public opinion has pushed lawmakers to think about cannabis — and particularly medical cannabis — in different ways than they used to," said John Hudak, a cannabis policy expert at the Brookings Institution, and author of Marijuana: A Short History. "A lot of state policymakers are trying to get this right and they obviously see the risk of shutting down a dispensary to be higher than the rewards of shutting down a dispensary." Sales in Denver spiked by 120 percent on Monday when spooked residents believed shops were about to be shuttered, according to cannabis analytics firm Headset. Legendary California dispensary Harborside already hired 10 workers since the outbreak began. The stock prices of MedMen Enterprises and Tilray, two of the largest cannabis companies in North America, doubled over the last week.
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The federal Small Business Administration (SBA) is celebrating the potential of hemp and is urging federal regulators to address concerns from farmers before rules for the crop are finalized. At the same time, however, it is maintaining that it cannot service marijuana businesses due to ongoing federal prohibition. In a blog post published on Tuesday, SBA’s Office of Advocacy described the wide range of uses for hemp, including rope and CBD oil, and detailed the crop’s evolution from a federally controlled substance to an agricultural commodity that was legalized through the 2018 Farm Bill. The U.S. Department of Agriculture (USDA) now has jurisdiction over the plant, and it released an interim final rule last year outlining guidelines for a domestic hemp program. In the time since the crop’s legalization, SBA says it has “embarked on an ambitious and lengthy outreach effort to hear from small businesses” and heard feedback from farmers about how USDA’s proposed rules could impact their operations. “Advocacy staff were first introduced to the concerns that many other producers would later echo” during those outreach events, the post states. “Advocacy also learned about the concerns that educational institutions have with the program, and the wide reach the rule would have if left as-is without modification.” During a trip to a Virginia hemp farm, for example, the agency “learned about the various non-CBD uses for hemp, and that the rule as written would stifle the ability of small producers to grow for purposes other than manufacturing CBD products.” SBA also hosted its own forum on hemp issues in Pennsylvania “where concerns were raised about the length of time between testing and harvest, especially for those growers that do not use technology, such as Amish communities,” the agency reported. To address such issues, SBA was one of numerous organization to submit feedback on USDA’s interim final rule during a public comment period. In its letter, the agency identified several potentially problematic provisions of the proposed rule, including the THC testing window, maximum THC limit and restricted authorized testing methods.
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The Veterans Cannabis Project on Wednesday has launched a website for Massachusetts veterans to voice concerns about a lack of access to marijuana after an order by Gov. Charlie Baker closed recreational dispensaries during the COVID-19 pandemic. The website, mass.vetscp.org, has a call to action, asking veterans and supporters to email Baker and state lawmakers and request that recreational marijuana shops be allowed to open. Baker this week asked residents to stay at home and ordered that all non-essential businesses close. While licensed medical dispensaries are considered essential and can stay open, the governor ordered recreational shops to close and the state Cannabis Control Commission issued cease and desist letters. “Our nation’s heroes deserve full access to the legal marijuana treatment options they rely on for medical care,” said Doug Distaso, the Veterans Cannabis Project executive director. “Denying access for veterans, including those who are disabled and are regularly prohibited from obtaining medical marijuana cards, is unnecessarily prohibitive for vets who depend on cannabis to help cope with physical and psychological injuries sustained on the battlefield.” The Veterans Cannabis Project in a statement did applaud Baker and state leadership for keeping medical marijuana dispensaries open. "We understand that maintaining public health and safety during this crisis is paramount and we all must do our part to keep our neighbors safe, Distaso said. "However, cannabis is essential to the veteran communities who rely on it as a treatment option, and denying access could cause them to seek treatment from dangerous products on the illicit market, or worse, return to opioid use.” As of Wednesday afternoon, 15 Massachusetts residents have died from illnesses related to COVID-19 and 1,838 residents have tested positive.
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March 26, 2020
USDA Approves Iowa Hemp Plan
The USDA has approved Iowa’s proposed industrial hemp plan; state officials, however, have specified that the program does not legalize the CBD industry. Iowa’s industrial hemp plan has received approval from the U.S. Department of Agriculture and farmers in the state can begin applying to cultivate the crop starting April 1. The plan does not legalize the production or use of CBD, according to the state Department of Agriculture & Land Stewardship. Under the state’s rules, all individuals associated with hemp production must be listed on the company’s license and undergo a background check and submit fingerprints. In all, the USDA has approved 12 state hemp program plans since the passage of the 2018 Farm Bill, which legalized hemp. Another 17 states will continue operating under their 2014 pilot programs, while eight other state programs are still pending review by the agency. Connecticut and Tennessee are listed as having submitted a plan to the USDA that required resubmission. Other states not pending review are currently drafting plans, according to agency data. Regulators have also approved 14 tribal hemp production plans and list another 16 as under review. Gov. Kim Reynolds (R) signed the hemp legislation last year. It allows farmers to grow up to 40 acres of the crop.
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The upending of American life necessitated by efforts to slow the spread of the virus will have profound effects on how Americans and American companies make and spend money—in turn, disrupting revenue collections for state governments. Morgan Stanley estimates that U.S. GDP might decline as much as 30 percent in the second quarter of 2020—figures not historically seen in peacetime.
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March 25, 2020
North Macedonia Waits for a Green Light, and Lucrative High
In a desolate industrial zone of this capital city, a cannabis grow house is under construction that, when finished, will span 178,000 square feet, about the size of a Walmart superstore. At full capacity, 17 tons of marijuana a year, worth about $50 million, will be harvested. Among the planned offerings is an American strain known as Herijuana, a portmanteau of “heroin” and “marijuana,” which has received some rhapsodic online reviews. “I feel blown to the dome omg,” wrote a fan on Leafly, a cannabis review site. “It also gave me the ability to rap.” Pharmacon, the company behind this operation, has everything it needs for a thriving, dome-blowing business, including contracts with buyers in Germany, Poland and the United Kingdom. Construction here in Skopje has slowed in recent days, because new coronavirus regulations restrict the number of people who can work in groups. But the building will soon be completed and then Pharmacon will face a very different kind of impediment: the government. “They told everyone this is a huge opportunity for a new industry,” said Zlatko Keskovski, a former karate instructor turned cannabis entrepreneur, who works for Pharmacon. “They said they would have a good law passed in a few months. That was almost two years ago.” Medical marijuana exports have been legal here since 2016. But to date, the law allows only oils, extracts and tinctures, which, measured by demand, are just 30 percent of the market. The other 70 percent is the smokable bud of the plant, known as “flower” in the industry, the sale and export of which remain prohibited. That was supposed to change in 2018, when government leaders announced that the export law would be amended. Foreign investors were beckoned. Additional licenses were issued. And there was a colorful come-hither last August, when an American cannabis executive named Michael Straumietis, who goes by “Big Mike,” flew in on his private jet, met with the country’s prime minister, Zoran Zaev, and raved to his 2.6 million Instagram followers. “Let me tell you, this country has huge potential,” he wrote, “and I’m excited to be a part of turning Macedonia into one of Europe’s first Cannabis Superpowers.” But the promised amendment has been bottlenecked in Parliament amid allegations of corruption. The opposition party says that the prime minister has steered cannabis licenses to relatives and allies, part of a plan to cash in on a coming green rush.
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Medical cannabis is now more accessible to Utahns. Starting Wednesday, qualifying patients will be able to get medical cannabis with cards from the Utah Department of Health and/or recommendation letters from medical providers. Those with letters will be able to purchase medical cannabis until Dec. 31. “A patient who purchases medical cannabis using a recommendation letter must purchase all of their medical cannabis from the same pharmacy until they obtain a medical cannabis card from the Utah Department of Health,” Richard Oborn, director of the Center for Medical Cannabis, stated in a press release. The change comes after House Bill 425 passed during the legislative session and was signed into law by Gov. Gary Herbert. Prior to the legislation, patients could only purchase medical cannabis with an official medical cannabis card. In order to qualify for a recommendation letter, patients must meet the following requirements: Live in Utah. Present a recommendation letter to the medical cannabis pharmacy from a licensed medical professional that states you have been diagnosed with a qualifying condition. Approved licensed medical professions in Utah include a medical doctor, osteopathic physician, advanced practice registered nurse, or physician assistant. The medical cannabis pharmacy must receive independent confirmation from the individual’s medical provider that the recommendation letter is valid. Present a valid form of photo identification to the medical cannabis pharmacy such as a drivers license, a United States passport or passport card, or a United States military identification card. Recommendation letters will no longer be accepted after Dec. 31. Patients will need to get a medical cannabis card from UDOH in order to buy medical cannabis in 2021.
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March 25, 2020
Marijuana businesses are ineligible for coronavirus disaster relief, federal agency confirms
The federal Small Business Administration reiterated Monday that marijuana companies are not eligible for disaster relief loans to lessen the blow of the coronavirus outbreak. Because cannabis remains illegal at the federal level, the marijuana industry is being denied access to these aid opportunities, including programs administered by SBA. The agency’s Northwest branch confirmed that in a response to a tweet from a cannabis business owner who inquired about eligibility. Greg Hubly, the Washington State-based business owner expressed frustration and said there are “10 families I’m responsible for and know all this talk about business relief is just more [expletive] messaging for my industry.” The agency recommended he explore relief options provided by state or local agencies. Last week, an SBA spokesperson similarly clarified that marijuana companies aren’t getting a cut of the federal dollars being appropriated for business disaster relief. “Because federal law prohibits the sale and distribution of cannabis, the SBA does not provide financial assistance to businesses that are illegal under federal law,” SBA’s Carol Chastang told Cannabis Business Times. “Businesses that aren’t eligible include marijuana growers and dispensers, businesses that sell cannabis products, etc., even if the business is legal under local or state law.” This barrier to aid access for what’s becoming a massive industry across the United States has elicited strong pushback from reform advocates and stakeholders. A coalition of marijuana industry trade groups — including the National Cannabis Industry Association, National Cannabis Roundtable, Minority Cannabis Business Association and Cannabis Trade Federation — signed a joint letter last week, urging congressional leaders to lift restrictions and allow cannabis businesses to obtain the same relief as any other legitimate market. “The ineligibility of cannabis businesses for disaster assistance loans is especially inequitable given that these same cannabis businesses are required to comply with other coronavirus-related measures, such as paid sick leave coverage,” the letter said. “We are not seeking special treatment for state-legal cannabis businesses. We only seek to have them treated on an equal level as all other job-generating, tax-paying companies in this country.” There have been some legislative attempts to address the problem. A bill filed last year by the chairwoman of the House Small Business Committee included provisions that would allow marijuana businesses to access SBA services, and language from that legislation was later inserted in another comprehensive reform bill that cleared the House Judiciary Committee. NORML, meanwhile, is reaching out to lawmakers asking them to ensure that marijuana industry workers are not discriminated against when it comes to unemployment benefits amid the pandemic. The business end of this crisis is just one part of the issue for drug policy reform advocates. A growing number of campaigns to change state and local drug laws have been upended, with signature gathering efforts being suspended to protect public health. From California to Nebraska to Washington, D.C., activists have been left scrambling. With businesses shuttering and governments asking residents to stay at home and avoid close contact with one another, signature collection efforts have been suspended for ballot initiative campaigns to amend reform state marijuana laws, legalize psilocybin mushrooms, and decriminalize psychedelics. Several campaigns are asking officials to allow online signature collection.
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There was a time when Kelly Carney worked as a software developer but the stock market crash of 2008 eventually led this Arkansan to take on a new career: organic farming. "Being an organic farmer this far south is a little risky," Carney said. Carney runs a quaint organic farm operation in the Cabot area. As owner of North Pulaski Farms, Carney grows a diverse set of crops, ranging from fruits to vegetables to more recently -- hemp. Industrial hemp contains less than 0.3 percent of tetrahydrocannabinol (THC), which limits the effects of one to absorb a "high" similar to marijuana. In 2017, state lawmakers passed the Arkansas Industrial Hemp Act, which allowed the issuing of licenses to grow hemp for research purposes over a 10-year-period. The Arkansas Department of Agriculture's Plant Board has issued 125 licenses to hemp farmers across 51 counties. Turning a profit continues to be a struggle for growers including Carney, who works as a one-man-band of sorts when it comes to producing the final product. "We grow it here, we process it here, we package it here and we distribute it right from here. So it's as local as you can get," Carney said. The extracted cannabidiol (CBD) is often used for the creation of medicinal-branded products. Medicine is what Carney says he's creating, although the cash-flow has yet to fall in his favor. But he remains optimistic that hemp will prove to be a financial asset to Arkansas' economy in the coming years. "In my particular case, since I'm a small CBD manufacturer, I've just got to sell the product so we're able to grow it. We've got the raws in stockpiled and all we need now is more people buying it," Carney said. The Arkansas Department of Agriculture continues to develop its program with emphasis on public education regarding hemp's potential economic benefits While medicinal CBD appears to be the prime product, the plant board is also looking at transforming hemp stocks into fiber for industrial processing. In 2019, the Arkansas hemp farmers generated almost $700,000 in gross income. Arkansas' hemp regulations forbid the sale of dry hemp (flower) to the public, which Carney believes is a missed opportunity for the farmers and the state.
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