CCMA Greenbrief August 23: CA Legislature Passes Decriminalization Bill to Governor…U.S. National Cannabis Market Soars To $47 Billion…Crime Rates Don’t Increase With Legalization, New Study Finds…

CCMA Political greenBrief

Thursday, August 23, 2018

Senator Scott Wiener (D-San Francisco) Urges Lawmakers To Approve A Bill Requiring California Prosecutors To Erase Or Reduce Thousands Of Marijuana Criminal Convictions Wednesday


“You can’t have the state government imposing all these new tests every year that come out of the profit margin of the business without giving some relief on the federal tax side that takes all of the profit out.”
Tim Cullen, CEO Of Colorado Harvest Company, On Costs For Testing Cannabis
“We model our business almost directly after the beer distributor. Manufacturers deliver their products to C4’s facilities, where we handle testing and taxes, Then we deploy it to stores with our sales people and delivery teams and trucks.”
Eric Spitz, Co-Founder Of Distributor C4 Distro

California Cannabis: The Path Forward, August 29th (CA – San Jose Event)

Join the CCMA, the California Cannabis Industry Association, Lori Ajax, Bureau of Cannabis Control and licensed operators from across the California cannabis industry two days after the end of the 45 day public comment period.Board member Gavin Kogan will be speaking. This is an opportunity for brands and manufacturers to voice their hopes and concerns to the regulators.  August 29th from 6-9pm in San Jose. Event details below.


California Lawmakers Pass Bill To Erase Old Pot Convictions (CA – Cannabis Legislation)

ABC News (August 22, 2018) A bill requiring California prosecutors to erase or reduce tens of thousands of marijuana criminal convictions was approved by the state Legislature on Wednesday and now awaits Gov. Jerry Brown’s signature. When voters passed Proposition 64 in 2016 to allow adult use of marijuana, they also eliminated several pot-related crimes. The proposition also applied retroactively to pot convictions, but provided no mechanism or guidance on how those eligible could erase their convictions or have felonies reduced to misdemeanors.


VIDEO: California Erases Old Pot Convictions (CA – State Legislation)

KCRA Sacramento (August 22, 2018) A bill requiring California prosecutors to erase or reduce thousands of marijuana criminal convictions was approved by the state Legislature on Wednesday and now awaits Gov. Jerry Brown’s signature. When voters passed Proposition 64 in 2016 to allow adult use of marijuana, they also eliminated several pot-related crimes. The proposition also applied retroactively to past pot convictions, but provided no mechanism or guidance on how those eligible could erase their convictions or have felonies reduced to misdemeanors.


Cannabis Supply Chains Coming Out Of The Shadows (CA – Cannabis Cultivation)

The Wall Street Journal (August 23, 2018) Low-slung industrial developments are rising along Avenue 48 here, a dusty stretch at the edge of relentless desert 140 miles from the Pacific Coast that’s becoming a hub for cannabis producers. Around the state, a nascent network of specialized distribution companies is springing up to connect these centers of licensed marijuana growers and processors to hundreds of retail outlets, providing something entirely new in the marijuana industry: A legitimate supply chain.

How Tech Will Drive The Next Stage Of Cannabis Regulation (CA – Cannabis Industry)

Forbes (August 23, 2018) The playing field in the cannabis industry has shifted drastically in the last two decades. California started the legalization trend among the states through allowing medical marijuana in 1996. In 2012, Colorado and Washington became the first states to legalize recreational usage. Today, about 30 states have legalized cannabis in some form, with more states soon to follow.

Two Cannabis Companies Dominate California Following New Regulations (CA – Cannabusiness)

Green Market Report (August 21, 2018) As the July 1 regulations had most California cannabis companies scrambling to meet compliance standards for cannabis products, two companies implemented the best practices they had been planning since January 1 and are now dominating the California cannabis industry. Headset, a real-time data source for the cannabis industry released their Insights Report where Caliva and Papa & Barkley are creeping up to the top, holding 50 top-10 rankings across the state of California.


California Cannabis Tax Hits All-Time High, Still Falls Short Of Expectation (CA – Cannabis Taxation)

KHTS (August 21, 2018) State tax revenue on cannabis sales jumped from $60.9 million in the first quarter of 2018 to $74.2 million in the second quarter, the California Department of Tax and Fee Administration (CDTFA) reported Monday. The retail sale of both recreational and medical cannabis is outlawed in the City of Santa Clarita, but delivery services operate within city limits, according to officials. The figures announced this week include state cultivation, excise and sales taxes. The numbers do not include tax revenue collected by each jurisdiction, officials said.


How MedMen Conquered The Most Cutthroat Market In Cannabis (CA – Cannabusiness)

Leafly (August 21, 2018) MedMen red seems to be everywhere these days. While most cannabis businesses remain locked within their home states, the Los Angeles-based company has spread over the past four years to include eight retail shops in Southern California, four dispensaries in New York (including a splashy new storefront on Fifth Avenue), and two in Nevada—with two more opening soon. It’s hard to miss the company’s aggressive marketing.


Analyst Pegs U.S. National Cannabis Market At $47 Billion; Stocks Soar (USA – Cannabis Investments)

Ganjapreneur (August 22, 2018) Wall Street Investment bank RBC Capital Markets has estimated that a legal cannabis market in the entire U.S. could generate $47 billion annually within the next ten years, according to a Business Insider report. The same analyst claimed that current combined legal and illegal sales top $50 billion. RBC Capital Markets compared that $50 billion number to existing spirits, beer, and wine markets. Spirits currently generate $58 billion annually, wine $65 billion, and beer $117 billion.


New Study Finds Legalizing Marijuana Doesn’t Cause Crime Increase (USA – Cannabis Crime)

Civilized (August 22, 2018) One of the arguments that anti-marijuana advocates make is legalizing cannabis will lead to major increases in crime and the streets of American cities will be filled with corpses if we let people smoke joints. But a new study says that’s all BS. A new study conducted by researchers in New Zealand examined crime rates at both the national level and in states after they legalized medical marijuana. They found there was virtually no change in crime rates after a state legalized medical marijuana, which indicates that cannabis legalization and crime rates are most likely unrelated.


OPINION: Legalizing Cannabis Can Help Rural Americans. Here’s How (USA – Local Ordinances)

Leafly (August 21, 2018) It’s increasingly difficult to succeed in rural America these days, and there’s more than one reason for that. The Great Recession hit rural America particularly hard, but recovery mostly benefited cities. Historically rural jobs, like manufacturing, are disappearing. The opioid epidemic continues to devastate America’s Heartland, and the rate of violent crimes in rural America has reached a ten-year high. It’s also true that rural Americans are more likely to die young, and more likely to die from suicide.


Accidents At Cannabis Cultivation Facilities Worry Industry Chemists (USA – Cannabis Cultivation)

The Royal Society Of Chemistry (August 22, 2018) Recent safety incidents at US cannabis cultivation facilities have caused concern at the American Chemical Society’s (ACS) autumn meeting. ‘I have a level of professional and personal concern about this new-born industry – while marijuana has been around a long time, at the industrial production level it is an infant,’ stated Neal Langerman, a safety consultant and founder of Advanced Chemical Safety in California, during a session of the 256th American Chemical Society meeting in Boston, US on 20 August.


The Amazon Of Cannabis (USA – Cannabis Investments)

Investopedia (August 21, 2018) In recent weeks, Tilray Inc. became the first Canadian licensed produced to list on the NASDAQ, while Constellation Brands  invested an additional $5 billion-dollars in Canopy Growth Corporation to develop cannabis-infused beverages.  What both companies have in common is that inherent in their respective share prices, investors are getting the upside call option of their biotech research & development. While history paints a picture of Reefer Madness, cannabis and hemp have emerged as the base-line ingredients in a wide array of end-products and use cases that include building materials, plastic composites, cosmetics & vanity, pet supplements, clothing, food, and yes, medicine.


Since Marijuana Legalization, Highway Fatalities In Colorado Are At Near-Historic Lows (CO – Stoned Driving)

Cannabis Business Executive (August 23, 2018) Since Colorado voters legalized pot in 2012, prohibition supporters have warned that recreational marijuana will lead to a scourge of “drugged drivers” on the state’s roads. They often point out that when the state legalized medical marijuana in 2001, there was a surge in drivers found to have smoked pot. They also point to studies showing that in other states that have legalized pot for medical purposes, we’ve seen an increase in the number of drivers testing positive for the drug who were involved in fatal car accidents.


Colorado’s Mandatory Pesticide Testing: Good For Labs, Painful For Growers (CO – Cannabis Testing)

Ganjapreneur (August 22, 2018) Cannabis testing labs in Colorado are seeing a stream of new profits while local cultivators are struggling to absorb the costs of state-mandated pesticide testing on all cannabis flower products, according to a Marijuana Business Daily report. The new rules, which took effect August 1, do not require additional pesticide testing for cannabis extracts and other concentrates.


Wholesale Prices For Oregon’s Outdoor-Grown Cannabis Are The Lowest America Has Ever Seen (OR – Cannabis Cultivation)

Willamette Week (August 22, 2018) Oregon weed isn’t just the cheapest in the country. Its wholesale prices for outdoor-grown cannabis flower are now the lowest the United States has ever seen. Those wholesale prices hit an all-time low last week at an average of $398 per pound, says Cannabis Benchmarks, which monitors industry prices nationwide. The group says the Oregon price is “the lowest ever observed for that grow type in any market.”


Big Opportunities For Cannabis Producers Prevail In Ever Growing Market (Canada – Cannabis Investments)

MarketWatch (August 22, 2018) In a very hot and getting hotter industry, to say that legalized marijuana and cannabis is a big deal would be quite a big understatement. Several cannabis stocks in Canada alone saw a slight lift this week after the Ontario Cannabis Store announced its initial supply agreements with 26 licensed producers. Selected firms ranged from the largest producer Canopy Growth Corp. to Northern Green Canada Inc., which received its cultivation license from Health Canada just a few months ago. According to cannabis research firm ArcView, legal weed sales across North America catapulted higher by 33% in 2017, and they’re on track to grow by an average of 28% per year through 2021, leading to nearly $25 billion in annual sales.


Backlash After Canadian Medical Association Calls To End Canada’s Medical Marijuana Program (Canada – Medicinal Cannabis)

Leafly (August 22, 2018) The Canadian Medical Association has sparked a feud with medical cannabis advocates across the country—including many of the organization’s own members—by proposing that Canada’s existing medical marijuana program be scrapped once recreational cannabis becomes legal. The CMA, a national, voluntary association of physicians, believes there shouldn’t be a separate regulatory framework for medical cannabis once recreational cannabis is available, and it’s calling on Ottawa to endorse a single regulatory system for both.


4 Things Canadian Cannabis Consumers Can Do To Avoid Getting A Lifetime Ban From America (Canada – Cannabis Relationships)

Civilized (August 21, 2018) When Canada’s marijuana legalization bill received Royal Assent this past June, cannabis consumers across the country had cause for celebration. And while the magnitude of bill’s passage will continue to reverberate for months and years to come, less certain is how other countries like the United States will react to cannabis legalization. The importance of Canada’s relationship with America can’t be overstated. Not only do the two countries share the longest undefended border in the free world, but Canada is one of America’s biggest trading partners, buying more goods from the US than China, Japan and the UK combined.  And then there’s the sheer amount of border traffic to consider.