Landlord Sues San Bernardino Over Marijuana Regulations

LOS ANGELES (AP) — A woman who owns a business that claims to be California’s largest landlord of marijuana businesses sued the city of San Bernardino to overturn its pot regulation ordinance that could bar her from the industry.

Stephanie Smith, the owner of a business called Bubba Likes Tortillas, said in the lawsuit filed Friday in San Bernardino County Superior Court that the city’s new law could create monopolies and also prevent her from renting property to pot growers and other marijuana operations.

The dispute dates back to December when a fortified building Smith owns was raided, cultivation operations her clients were operating were shut down and 35,000 marijuana plants were seized. Smith was not involved with pot growing and she was not arrested or charged, her attorney Ben Eilenberg said.

After the raids, a judge invalidated a voter-approved measure to regulate marijuana operations and San Bernardino City Council passed its own measure to replace it earlier this month.

The new rules said anyone — from a permit applicant or an employee of a cannabis business to the owner of a property — could be barred from the commercial cannabis business in the city if they had violated local or state laws related to the industry or if they had failed to report income from it.

Smith is concerned that could apply to tenants — or even her company — because the businesses raided in December were in the process of being licensed, Eilenberg said. They received approval letters to operate a week after they were shut down, but the law appears to make them ineligible to get licenses.

“This misguided ordinance is a backdoor ban that continues the city’s illogical campaign against a legal product,” Smith said in a statement. “Any person who has ever had anything to do with cannabis is banned for life from entering the legal market under this ordinance. It is not what the voters want and it makes no sense.”

Eilenberg said it could also apply to businesses that operated in the murky days when medical marijuana was loosely regulated. Cities like Los Angeles and San Francisco have given priority to license businesses that operated under medical marijuana regulations to get into the broader retail market that opened Jan. 1.

“San Bernardino is taking the opposite tack and guaranteeing that anyone in the city who operated prior to this law has to remain in the black market,” Eilenberg said.

The lawsuit said the ordinance would violate the constitutional right to due process by disqualifying tenants or Smith without ever granting them an administrative or criminal hearing.

The lawsuit also claimed the city law could create monopolies of certain types of marijuana operating licenses.

The ordinance would allow 17 commercial marijuana businesses in the city, but there are 19 different types of licenses that could be issued — everything from growing pot, to transporting it, testing it and selling it.

A city spokeswoman did not immediately comment on the case.

Big Pharma Company Partners with Cannabis Producer

There has been a major new partnership formed in the pharmaceutical industry, according to a newly filed binding letter of intent. American-owned cannabis producer Tilray will form a strategic alliance with Sandoz Canada, an affiliate of Sandoz International, the arm of Novartis Group that produces generic pharmaceutical products.

This won’t be a limited partnership, either, as the two entities plan to collaborate on “all key business, supply, legal, marketing and sales aspects of the proposed alliance.”

Isabelle Troïtzky, a spokesperson for Sandoz, spoke with in-Pharma to shed light on the new joint project.

“Once the alliance is in effect, initially, Tilray capsules and ingestible oil products will be offered for sale under doctor’s authorization directly to patients in Canada via mail order,” explained Troïtzky.

“Subject to future regulatory changes, Sandoz Canada will wholesale and distribute co-branded — Sandoz and Tilray — non-smokable/non-combustible medical cannabis products to Canadian hospitals and pharmacies.”

Right now, medical marijuana patients in Canada can only obtain cannabis products through mail-order from a licensed producer. Tilray, an affiliate of Privateer Holdings, is likely banking on future regulation changes to allow for dispensing at pharmacies as well.

Novartis won’t be the only major pharmaceutical player to diversify their portfolio by getting involved with cannabinoid-focused properties like Tilray.

Big Pharma joining the cannabis industry instead of fighting it.

Opioid manufacturers have been entering the industry instead of fighting it. Corporations like Noramco, who was awarded two U.S. patents covering CBD and THC production, and synthetic cannabinoid maker Insys Therapeutics have both been involved in developing medical marijuana solutions.

Noramco, who has some experience with cannabis as the manufacturer of synthetic cannabinoid medication dronabinol, received patents to manufacture both CBD and THC-based products for clinical and pharmaceutical use.0327

Insys Therapeutics, the maker of a synthetic CBD oral medication that is currently in clinical trials, is also one of the most prominent manufacturers of fentanyl products in the world. Their Subsys fentanyl oral spray is at the center of a bribery scandal currently, as the company was allegedly paying doctors in New York exorbitant kickbacks to ramp up prescriptions of the deadly drug. Five doctors have been charged and Insys CEO John Kapoor and other top company executives have been indicted for their alleged involvement.

Sandoz’s parent-company Novartis has had its fair share of controversy surrounding the opioid epidemic as well.

In 2012, Novartis was embroiled in controversy when it was discovered the company neglectfully packaged prescription opioid painkillers in boxes of over-the-counter medications like Excedrin, NoDoz, and Gas-X. More than 1,600 batches of the non-prescription drugs boxed at a Lincoln, Nebraska factory that also produces dangerous and addictive opioid pharmaceuticals were recalled by the company.

The potentially fatal mistake was discovered by the Food and Drug Administration during an inspection when they found a malfunctioning element of the manufacturing process. The pills had been getting stuck and carried over into packaging for other medications.

Additionally, federal prosecutors alleged last year that Novartis was deceitful in its claims that it held nearly 80,000 “educational events” for doctors. While the company claimed it was inviting doctors from around the country to speaking engagements they said were purely educational, the government believes the “sham” events, as they call it, were merely kickbacks in nature — opportunities to treat physicians who were prescribing Novartis drugs to luxurious trips.

This month, prosecutors said they have Novartis sales reps who will testify that they were “essentially buying scripts” by lining the pockets of doctors around the nation. The government also says it has evidence doctors were paid to speak at events that never actually occurred.

Novartis, for their part, “disagrees with the government’s characterization of our conduct and continues to dispute the allegations concerning certain speaker programs.”

While some pharma companies have proved corrupt in the past, it may be imperative to include them in the progression of medical marijuana research. Between vast funds dedicated to finding new therapeutic solutions and the scientific minds to conduct new-age research, these companies could speed up the process quite a bit.

In a monumental medical marijuana summit at Harvard Medical School, Dr. Raphael Mechoulam, the founding father of cannabis research and the man who isolated cannabinoids for the first time, explained how pharmaceutical companies could help bring cannabis out of the shadows.

“People express themselves and say, we want this to be done, it can be done,” said Dr. Mechoulam. “It is complicated. It will cost money. It will take time, but it can be done.”

“I thought that as soon as we know the chemistry and the pharmacology and then the toxicity, and if there are any positive effects, companies will go in and take compounds and go ahead with clinical trials, which is true for a huge, huge number of drugs.”

Man Arrested For Death Threat Against Pro-Marijuana Congressman

Last week ended on a strange note for lawmakers in Virginia Beach, Virginia. Following an explosive encounter, we see a man arrested for death threat against pro-marijuana Congressman Scott Taylor.

Encounter Spins Out of Control

According to the Department of Justice, the incident occurred last Thursday when 69-year-old Wallace Grove Godwin visited the office of Virginia Congressman Scott Taylor. When a conversation about marijuana policy intensified, Godwin allegedly threatened Rep. Taylor and two of his staff members.

Official documents from the DOJ reported that Godwin said: “Scott is having an event this Saturday. I am going to get my shotgun and do something about this. I will handle this myself.”

He then reportedly pointed at two of Taylor’s staff members who were standing nearby and told them: “You two are next.”

Godwin is allegedly registered to carry concealed firearms. Given that, staffers took the threats seriously and Godwin was soon arrested.

He was charged with threatening to murder and assault a United States official. That is a felony charge that could lead to as many as 10 years in prison. However, the DOJ said that sentences for federal crimes are typically less than the maximum. Godwin appeared in court last Friday.

A History of Confrontations

This isn’t the first time that Godwin has confronted Rep. Taylor. Apparently, marijuana policy has been a real point of tension for Godwin.

In 2017, Godwin showed up at Rep. Taylor’s private home and got into a heated fight about marijuana law. Eventually, Taylor told him to leave and Godwin did. Additionally, there was another incident very similar to last week’s in which Godwin went to Rep. Taylor’s office and started yelling at his staff members.

On top of all that, Godwin has tried taking his anti-marijuana anger directly to the top. Last year, Godwin filed a lawsuit against the federal government. In his suit, he claimed that the government was failing to enforce federal cannabis laws. The lawsuit was dismissed.

Final Hit: Man Arrested For Death Threat Against Pro-Marijuana Congressman

It seems likely that Rep. Taylor’s history with cannabis legislation is at the root of Godwin’s frequent confrontations. In particular, Godwin—who is an avid opponent of marijuana—may be frustrated that Taylor was an original co-sponsor of the Ending Federal Marijuana Prohibition Act of 2017.

That bill included a large number of co-sponsors and included both Democrats and Republicans like Rep. Taylor.

The question of how the federal government will approach cannabis has become an increasingly hot topic in recent months. Much of the growing intensity surrounding the debate stems from actions taken by Attorney General Jeff Sessions.

In January, Sessions started the new year by rescinding an important Obama-era policy on state cannabis laws. The policy, known as the Cole Memo, directed federal agencies to take a hands-off approach when it comes to dealing with states where weed is legal. By rescinding that policy, Sessions effectively opened the door to a federal crackdown on weed-legal states.

Sessions is an outspoken opponent of cannabis. He has also recently tried to blame cannabis for the ongoing opioid crisis. His anti-weed campaign has escalated tensions between weed-legal states and the federal government, and between those who favor legalization and those who do not.

Colorado Plans To Survey Residents On Weed Consumption And Driving

The Colorado Department of Transportation is encouraging Coloradans to “join the cannabis conversation” about driving under the influence. The new initiative, called The Cannabis Conversation, seeks input from cannabis users and non-users alike. Officials want to hear the opinions, habits, behaviors and other thoughts people have about marijuana and driving. But as Colorado plans to survey residents on weed consumption and driving, the actual impact of legal cannabis on traffic safety isn’t fully understood.

The Department of Transportation hopes their drugged driving initiative will help the state develop practical solutions and assuage public concerns.

Colorado Department Of Transportation Launches Drugged Driving Initiative

Around midsummer last year, newspapers in Colorado began running stories that recreational cannabis use was contributing to a spike in driving accident fatalities.

The Denver Post, for example, ran a story in August reporting that more drivers involved in fatal crashes were testing positive for marijuana use. Yet the authorities quoted in that story admitted that the numbers cannot definitely be attributed to recreational legalization.

The issue is further complicated by the fact that testing for cannabis consumption is tricky. Different detection methods test for consumption in different windows.

Did a driver involved in a fatal accident used cannabis prior to getting behind the wheel? Were they high while they were driving? Or did they just consume cannabis at some point in the past?

In short, the correlation of the data is strong. But proving causation is a different and more difficult matter. In their search for answers, Colorado plans to survey residents on weed consumption and driving.

Colorado’s Drugged Driving Problem By The Numbers

Police, public safety officials, and victims families all say the numbers are too high to ignore. Between 2013-2016, drivers involved in fatal accidents in Colorado rose from 627 to 880, about a 40 percent uptick.

In the same period, drivers who tested positive for alcohol in those fatal crashed increased 17 percent. However, the number of drivers who tested positive for cannabis jumped from 47 in 2013 to 115 in 2016, a 145 percent spike.

Those numbers sounded the alarm for many public health and safety officials in Colorado. And CDOTs drugged driving initiative is the first significant step toward addressing what is undeniably a real concern for many.

Many suspect the root of the problem is cannabis users’ perception that driving high isn’t a major concern. And that’s why Colorado plans to survey residents on weed consumption and driving.

Officials want to better understand why some cannabis users don’t seem to take the dangers associated with high driving very seriously. And more importantly, what it will take to make these drivers change their minds.

Final Hit: Colorado Plans To Survey Residents On Weed Consumption And Driving

The Department of Transportation’s survey is completely anonymous and only takes about five minutes to complete.

Questions range from the practical to the highly subjective. How often do you drive? Consume cannabis? And do you think society still stigmatizesmarijuana use?

The survey also wants to know where you consume cannabis, how you consume it, and who/where you get it from.

Midway through the survey, you have the feeling you’re being interrogated about your cannabis lifestyle in general, not just about your thoughts on driving.

But right about around question ten, the survey takes a turn back to questions that aim at the heart of the issue. Do you drink when you smoke? Do you drive? And when you are high, how do you get around? Are your stoned friends giving you a lift?

The survey, overall, is this odd blend of informative and perceptual questioning. Gathering data about real cannabis habits but also asking people to reveal how they think other people view them.

And more interestingly, how capable they think law enforcement is at identifying drugged driving.

Do you think cannabis makes you a better driver? What would convince you not to drive high? If you knew cops were just as good at catching high drivers than drunk drivers, would you drive high less often?

At the end, the survey pivots to what feels like a pop quiz about the legality of driving under the influence of cannabis.

The answers to these types questions are obviously “yes,” but CDOT isn’t sure people really understand the law. And finally, the most interesting question. Who would you believe, who would actually convince you, if they told you driving high was unsafe?

Arkansas Judge Considers Effort to Halt Marijuana Licenses

LITTLE ROCK, Ark. (AP) — An Arkansas judge said Friday he’ll rule by the middle of next week on whether to allow the state to issue its first licenses for companies to grow medical marijuana after hearing complaints from an unsuccessful applicant challenging the permitting process.

Pulaski County Circuit Judge Wendell Griffen did not rule after hearing testimony from the state and Naturalis Health LLC, which wants the 95 applications for medical marijuana cultivation facilities to be re-scored by an independent evaluator. The Medical Marijuana Commission had planned to issue licenses to the top five applicants on Wednesday, but Griffen issued a temporary restraining order halting the process so he considered the request for a preliminary injunction.

“This is a potential billion dollar industry,” Keith Billingsley, an attorney for Naturalis, said during closing arguments. “Ninety-five people submitted applications and spent a lot of time, including my client, on this process assuming the state of Arkansas would get it right, that the state of Arkansas would conduct a blind examination of applications and that it would be done in a fair and impartial way.”

Naturalis ranked 38th out of the 95 applications submitted, state officials said.

Arkansas voters in 2016 approved a constitutional amendment legalizing medical marijuana for patients with certain conditions. The commission is expected later this year to license up to 32 dispensaries to sell the drug.

The company’s lawsuit claims the process for scoring applications and awarding the licenses is flawed. The company also cites two potential conflicts of interest, including one commissioner whose law firm represents the owners of one of the facilities that was going to receive a license in non-marijuana related matters. The state, however, has said that the applications scored by the commissioners were redacted and did not include any identifying information about the applicants.

The state has also said Naturalis has not proved it would suffer irreparable harm if the state is allowed to award the licenses.

“The fact that they spent money to get ready for an application and they submitted an application that was a losing application and, if they were possibly scored again and they improved their ranks from 38th to one of the top five, they might then reap the return on their investment, those are speculative harms,” Deputy Attorney General Monty Baugh said.

Griffen earlier Friday also denied an effort by the state to dismiss the company’s complaint, rejecting arguments that Arkansas was immune from the lawsuit and that Naturalis did not have standing to sue.

Arkansas has approved more than 4,500 applications for patients to use medical marijuana and will issue registry cards about a month before the drug is expected to be available legally.

This Canadian Cannabis Company Just Joined Forces With Big Pharma

The deal was announced today by Tilray Inc: the cannabis company just joined forces with Big Pharma. Tilray is a licensed manufacturer of medical marijuana products. The Toronto-based firm has production operations in British Columbia. The company just signed an exclusive agreement with Sandoz Canada of Quebec. Sandoz is a subsidiary of Sandoz International, part of the Novartis healthcare conglomerate.

A Tilray executive says this is the first time a cannabis company has entered into a deal with Big Pharma in Canada.

Under the new deal, Tilray will be the sole partner to create non-combustible medical cannabis products with Sandoz. Together, the two companies will make co-branded capsules, topicals, sprays and similar medicines.

Brendan Kennedy is the president and CEO of Tilray. He told reporters that his firm had considered a deal with several other pharma companies before settling on Sandoz.

“A lot of pharmaceutical companies are paying attention to what’s happening in this industry, and over the past few years, we’ve had conversations with a few of them… This is a huge milestone for us,” Kennedy told reporters.

Deal Puts A Familiar Name On New Products

Kennedy says that for many patients, there is still a stigma attached to cannabis. Therefore, they may be reluctant to try medical marijuana products.

The alliance with Sandoz puts a recognizable name on medicines newly on the market. Consequently, patients, doctors and drug stores are more likely to accept them.

“That was part of the opportunity we saw… To distribute Tilray products that have the Sandoz logo that pharmacists, physicians, and patients are used to seeing in their pharmaceutical packages. I think that will give physicians confidence and trust in our brand and our product,” he said in an interview.

Cannabis Gaining Acceptance In Canada

Canada legalized medical marijuana in 2001. Since then, it has gained in popularity, especially recently. In April 2017 the country’s health department Health Canada reported nearly 175,000 registered medical marijuana patients nationwide. That number soared 35 percent to more than 235,000 in just seven months.

As more patients accept medical marijuana, the healthcare industry has taken notice. The number of doctors who have written medicinal cannabis recommendations has risen, as well. Not totally surprising since we now know the benefits of THC and CBD.

Some pharmacy chains, such as Shoppers Drug Mart and PharmaChoice have signed contracts and begun to set up supply chain infrastructure to provide medical marijuana products.

Even insurance companies are getting in the game. Sun Life Financial responded to client requests and added medical marijuana coverage as an option for its group health plans earlier this year.

And some plan sponsors, such as Loblaw Companies Ltd. and the Ontario Public Service Employees Union, already include coverage for medical marijuana.

Canada is scheduled to legalize recreational pot later this year.

Final Hit: This Canadian Cannabis Company Just Joined Forces With Big Pharma

Tilray has a three-step plan to implement its deal with Sandoz.

First, the company will focus on product development to create new medical marijuana therapies. The company then plans to take advantage of its sales and distribution infrastructure to educate pharmacists about the new products.

Finally, the firm will distribute Tilray Sandoz medicines to Canadian pharmacies nationwide. Will the world finally see moonrocks in orange ‘scrip bottles? The possibilities are limitless.

California Lawmakers Are Pushing For Lower Tax On Legal Cannabis

California lawmakers are pushing for lower tax on legal cannabis in an effort to thwart the black market. Two members of the state assembly announced a bipartisan plan Thursday that would reduce taxes on legal pot. California’s fledgling cannabis industry began January 1 of this year after voters passed Prop 64 in 2016.

Assembly Member Rob Bonta, a Democrat from Oakland, and Republican Tom Lackey of Palmdale say taxes on pot are too high. They believe that the impact of taxes on the price of legal weed allows unlicensed growers and sellers to continue to thrive.

“Without tax relief to make taxes more affordable, we will continue to empower California’s mature black market,” Lackey told reporters.

Lackey is a retired 28-year veteran of the California Highway Patrol. He also noted that illicit operators don’t check identification to prevent sales to minors. They don’t pay any taxes or follow strict safety rules, either.

Taxes And Even More Taxes

Cannabis taxes in California are first assessed to cultivators. Growers pay $9.25 per ounce of flower and $2.75 for each ounce of leaves. Once products are sold at retail, even more levies are added. A state excise tax slaps another 15 percent onto the total. Local governments can add their own fees, and sales tax is tacked on for recreational pot buyers.

Retailers in California say when combined, taxes on marijuana approach 50 percent. The cost of legal weed goes up even more with the expenses of required testing and tracking thrown in, especially when specialty items like moonrocks are in the mix.

If Bonta and Lackey succeed, their plan would reduce the excise tax to 11 percent. They would also eliminate the cultivation tax for three years. The lawmakers estimate that total prices at retail would shrink about 9 percent with the proposed reductions.

Not A New Problem

Other states with legal cannabis have also struggled to find the so-called sweet spot for taxation. Activists have long included potential tax revenues as a benefit of cannabis legalization. Consequently, many lawmakers see marijuana as a cash cow for strapped public coffers.

But when taxes are too high, many buyers choose to remain outside the legal supply chain. This means that established black market operators continue to have a steady stream of willing customers.

When the State of Washington became the first state to legalize cannabis in 2012, it also imposed taxes at many stages of production. A tax of 25 percent was assessed up to three separate times on some products. It was added when growers sold to processors, and when processors sold to retail shops. Consumers got hit again when they purchased from the retailers.

Washington reduced and combined those taxes into one 37 percent levy at the retail level in 2015. Buyers also pay the usual sales tax on their purchases.

Final Hit: California Lawmakers Are Pushing For Lower Tax On Legal Cannabis

Assembly Member Bonta noted that is important to support the newly legal pot businesses now so they can compete with the black market.

“If we don’t get it right in the beginning, it will be hard to make up for it later and correct in the future,” he said.

Snoop Dogg Has Raised Over $40 Million For Marijuana Investments

At this point, the name Snoop Dogg is synonymous with cannabis. His passion for weed has never shaken. In fact, Snoop Dogg has raised over $40 million for marijuana investments.

While the rapper, whose real name is Calvis Broadaus Jr., has had an illustrious career in the music business, it’s his second career that could go down as his most productive.

When it comes to cannabis, few have made as large of an impact as Snoop. In 2015, he co-founded Casa Verde Capital, a venture fund specializing in the ‘ancillary’ side of the marijuana business. Or in other words, the parts of the burgeoning cannabis business that don’t actually deal with the plant itself. This includes, but is not limited to, health, tech, financial services, technology, media, compliance, and laboratory technology verticals.

While Snoop’s firm has been in business for almost three years now, it’s far from reaching its apex. However, the company did reach a significant milestone this week. The venture firm finally closed its debut fund. The move raised over $45 million for future business endeavors.

An Expanding Business

In an interview with Tech Crunch, Karan Wadhera, Snoop’s managing partner at the firm, says most of the $45 million was raised over the course of last year, through individual investors and limited partnerships.

At first, Wadhera explained, the company found it difficult to raise money. But between Snoop Dogg’s household name, and the firm’s ancillary business model, the company was able to grow remarkably over the last fiscal year. And, according to Wadhera, this is only the beginning.

“We’re writing seed-stage to Series A-size checks, so $1 million plus, with roughly half our fund reserved for follow-on investments, where we can write another $3 million to $5 million,” Wadhera explained. ” And we’re only focused on the ancillary part of the cannabis industry, so we won’t invest in companies that touch the plants. No dispensaries or cultivators or manufacturers. We’re investing in the picks and shovels.”

As it stands, CVA’s portfolio includes the development of a number of start-up cannabis companies, including Eaze, Greenbits, and Leaflink and Merry Jane. The company has done well to diversify its portfolio throughout the tech, media, and financial sectors of the cannabis industry.

As for Snoop’s role in the company, Wadhera says he’s more of an ambassador of the brand, more than anything else. However, he does occasionally get his hands dirty in some of the media-related projects.

“His involvement lends a lot of credibility and excitement to our portfolio companies. He’s also there for input whenever we need it, “Wadhera explained.

“He’s hands-off on the investment process, but when it comes to certain companies, he’s very involved, including with Merry Jane, a lifestyle media site [focused around cannabis]. That’s content… That’s Snoop’s bread and butter.”

Final Hit: Snoop Dogg Has Raised Over $40 Million For Marijuana Investments

Snoop made a career talking about marijuana back when it was largely considered an illicit substance. Now, he’s transitioning to the business side of the legal cannabis. Shifting focus to legal cannabis can help remove some of the stigmas surrounding the plant.

And Casa Verde has been active over the past several months, as well.

In November, the investment firm took on a new sector of the cannabis industry-laboratory testing. The firm invested over $1 million into Canalysis, a cannabis lab that tests medical and recreational cannabis products for cultivators, manufacturers and dispensaries.

At their current trajectory, $45 million might seem like small potatoes going forward. However, only time will tell.

Arkansas Judge Stalls Permit Process For Growing Medical Marijuana

In an unforeseen twist, an Arkansas judge stalls permit process for growing medical marijuana in that state, pending a lawsuit by unsuccessful applicants. Pulaski County Circuit Judge Wendell Griffen directed state officials not to issue licenses to the applicants they have already selected. Regulators with the Arkansas Medical Marijuana Commission had planned to issue those licenses today.

Was The Process Unfair?

The commission announced which applications to cultivate medical marijuana in the state they approved late last month. At least two companies with unsuccessful bids subsequently filed lawsuits on Tuesday alleging the selection process was unfair.

Naturalis Health LLC Health LLC and Delta Cannabinoid Corp. are the plaintiffs in the cases. They included in the suits a request that the judge issue a temporary restraining order to stop the commission from granting the licenses.

The judge sees merit in the plaintiff’s arguments, according to reports in local media.

While announcing his order today, he said that Naturalis Health “asserts facts showing a substantial likelihood of success on the merits regarding violations of the Administrative Procedure Act, due process, and equal protection.”

Plaintiffs Don’t Trust The System

The lawsuit from Naturalis Health is 19 pages long, Arkansas Online reports. In the suit, the company states that they have no faith in the permitting process.

“Defendants have caused a complete distrust in the newly implemented medical marijuana industry, approved by Arkansas voters, to serve the medicinal needs of qualifying Arkansans.”

The lawsuit also called on Judge Griffin to act quickly.

“Arkansas is the first state in the south to legalize medicinal marijuana. The State has an obligation not only to plaintiff but to its citizens, to get this right. The State has a limited window of time to correct the problems outlined in this Complaint. This Court must act now.”

The legal filing also notes that one of the commission’s members has an “extremely close personal and professional relationship” with Dr. Scot Michael Schlesinger. Dr. Shchlesinger is a partner in Natural State Medicinals. The commission selected that company to receive one of the permits.

Will A Lawsuit Prevail?

Alex Gray is a lawyer with the Arkansas Medical Marijuana Association. He does not believe a lawsuit against the state can succeed.

He noted that the Arkansas Supreme Court ruled this year that the state can’t be sued in its own courts. Gray has filed lawsuits for growers in the past that were then dismissed by the courts.

“Any challenge naming the state as a defendant is going to have issues prevailing based on the state’s sovereign immunity,” Gray said.

Final Hit: Arkansas Judge Stalls Permit Process For Growing Medical Marijuana

Regulators are now unsure if the commission’s meeting scheduled for this afternoon will still be held. Scott Hardin is a spokesperson for the Arkansas Department of Finance and Administration (DFA). He issued a statement via email to the press today.

“The DFA’s legal team and [Arkansas Beverage Control Division] leadership are currently reviewing the situation to determine whether or not a meeting will take place today,” Hardin wrote.

Judge Griffin scheduled a hearing on the matter for Friday morning.

This State’s Medical Marijuana Program Might Be Delayed

Montana’s legislature seems to be suffering from some last-minute indecisiveness just weeks before the state implements changes to rules governing legal medical cannabis. Slated to take effect on April 10, now this state’s medical marijuana program might be delayed. The hangup has to do with rules governing the production end of the cannabis industry. The concern from lawmakers is that larger producers can grow so much cannabis, they’ll drive out smaller producers.

Montana Lawmakers Say “Canopy Limit” Rules Are Bad For Small Businesses

Under Montana’s current rules, producers are subject to a “canopy limit” that determines how much cannabis they can grow. The argument from legislators who want to delay the start of the state’s program is that the limits are in fact too high. This, they say, gives an unfair market advantage to large commercial growers.

Specifically, the rules set a 50 square foot limit for each patient registered with the state’s program. In other words, producers cannot grow more than 50 square feet of cannabis per patient registered with the state.

Kate Cholewa, spokesperson for the Montana Cannabis Industry Association, says that amount of canopy space is way too excessive for the state’s medical cannabis program. Cholewa points out that the 50 square feet limit is twice the space allowed for growers in Washington state. Washington has a recreational market in addition to its medical industry.

Legislators in Montana are echoing Cholewa’s concerns. Rep. Tom Jacobson (D-Great Falls) said the current rules leave the door open for larger growers to dominate the market with lower prices.

“That will force small producers out because they won’t be able to compete at that scale,” Jacobson said.

And he’s not alone. State Sen. Jill Cohenour (D-Helena) says the canopy limit decision may have been premature. “I’m concerned that some of this stuff was done quickly and maybe with limited information,” she said.

Both Democratic legislators serve on the Revenue and Transportation Interim Committee of the Montana Legislature. Committee members raised their concerns about cultivation space at a meeting Wednesday.

By the end of that meeting, the committee had approved a motion to draft a letter recommending the health department to change the rules and postpone the effective date.

This State’s Medical Marijuana Program Might Be Delayed

The letter will go under review by the Children, Families, Health and Human Services Interim Committee. This committee conducts the primary oversight of the state’s medical cannabis program.

Erica Johnston, who manages operations services for the state health department, said the committee’s letter is just the latest in the deluge of feedback they’ve received about the grow area limits.

But Johnston also admitted that she wasn’t aware of the reasons for setting the canopy limit to 50 square feet per patient.

The rules, she said, “were made based on what we found in other areas and what we theoretically in design thought would be a good idea,” Johnston said.

Consistent, negative feedback about the limit, however, may compel Montana lawmakers and regulators to revisit the issue. According to Johnston, the health department is already looking at ways to modify the canopy limit rule.

And that’s why this state’s medical marijuana program might be delayed past the April 10 deadline.

In addition to concerns about cultivation space, there’s growing concern the health department isn’t ready for implementation in any case.

With less than a month to go, the Montana Health Department has its work cut out for it. They’re still interviewing facility inspectors. No clear guidelines for product testing are in place. And providers just have to register and get their license by the end of the year, not by April.

In fact, the health department wants to change the rules on how it can change the rules. This way, it will be more prepared to make quicker rule changes in the future.

Montana’s Medical Marijuana Program On Hold

No doubt, Montana is still trying to dial in the right regulations, rules, and procedures for its medical cannabis program. But newness and lack of precedent seem to have gummed up the works.

Indeed, some state lawmakers think Montana should throw the baby out with the bathwater, and start from scratch.

“We’re already in the business,” Rep Alan Refield (R-Livingston) said. “But we don’t have the rules.’

In whatever form legal medical marijuana ultimately takes in Montana, it’s certain that it will come with more rules and regulations. The hope is to set policy that works to the benefit of patients and small producers, not just large-scale commercial growers. Until then, it’s likely that this state’s medical marijuana program might be delayed.