CCMA Political greenBrief
Wednesday, August 29, 2018
Sen. Mike McGuire’s Legislation That Extends The Length Of Time Cal Fire Investigators And Local District Attorneys Can Prosecute Rogue Cannabis Grows Passes To The Governor’s Desk To Be Signed
“Many in the industry are doing the right thing and becoming licensed. Illegal conversions are still a massive problem and they pollute our watersheds, threaten drinking water supplies, kill wildlife and usher in near irreversible harm to California’s beloved forests. SB 1453 will give Cal Fire investigators and prosecutors the time they need to successfully throw the book at these rogue growers who are destroying our forests and it provides authorities time to address these terrible acts.”CA Senator Mike McGuire (D-Healdsburg) On The Illegal Conversions For Cultivation Sites
“A major Prop 64 deficiency is the absence of a state-leveled playing field for drug war victims to secure business licenses and capital now. At the same time state license approvals and regulations are happening. We believe it is imperative for the regulatory process to level the playing field now with a basic starting formula for equity.”A Representative For The CA Urban Partnership On The Issues Of Cannabis Prohibition
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.
Big Pharma Roars – CVS Pharmacy Applies For Almost 300 Cannabis Grow Licenses (CA – Cannabis Cultivation)
L.A. Cannabis News (August 27, 2018) The California Department of Food and Agriculture (CDFA) is the government agency tasked with promoting the local agriculture while ensuring that the food produced in the state is safe for consumption. Part of their job is to oversee the process involved in licensing nurseries throughout the state. So if you take a peek into their website, anyone can see individuals and organizations who have applied for a grow license. And this includes cannabis grow licenses. Nothing is out of the ordinary, until you see the name of CVS Pharmacy come up. Yes, you read that right.
DOJ: Illegal Marijuana Grows Damaging CA National Forests (CA – Illicit Market)
KCRA 3 (August 28, 2018) A nearly year-long operation revealed every national forest in California has been damaged by illegal marijuana grows, according to the Department of Justice. Federal, state and local agencies are approaching the end of a year-long project called “Operation Forest Watch,” focusing on eradicating illegal grows on California public lands. Each one of California’s 18 national forests, from the Oregon border to Los Angeles, has been damaged, largely due to rampant toxic pesticide use. Those pesticides are made with some chemicals banned in the country, killing wildlife and poisoning protected lands.
Sen. McGuire’s Illegal Forestry Conversion Bill Passes State Legislature (CA – Illicit Grows)
KRCR News 7 (August 27, 2018) Sen. Mike McGuire’s critical environmental legislation cracking down on illegal forest conversions to cannabis or other agricultural operations passed both houses of the legislature with bi-partisan support and is being sent to Gov. Jerry Brown’s desk for his signature, according to the office of the senator. The senator’s office says SB 1453 is critically important to protect California forestland from illegal clearing to cannabis conversions which decimate watersheds, pollutes drinking water supplies and kills wildlife.
California Cannabis Bureau Holds Final Public Comment Hearing (CA – State Regulations)
Candid Chronicle (August 27, 2018) From 10 a.m. to noon on Monday, August 27, the California Bureau of Cannabis Control (BCC) held their last hearing of the 45-day public comment period for the agency’s proposed non-emergency regulations. In a meeting room at the Tsakapoulos Library Galleria in Sacramento, BCC Chief Lori Ajax along with Assistant Chief Counsel Tamara Colson welcomed citizens to present oral comments and written statements concerning the state’s cannabis rules.
State Cannabis Enforcement Agencies Raid Sacramento Delivery Company (CA – Cannabis Licensing)
Sacramento Business Journal (August 28, 2018) Two state agencies raided a cannabis delivery operation off Power Inn Road last week, alleging it was operating without a permit and failing to remit taxes to the state. The Bureau of Cannabis Control said in a press release Tuesday that it and the state Department of Consumer Affairs’ Cannabis Enforcement Unit seized cannabis flower, concentrate and edibles from The Cannaisseur Club. The raid resulted from a complaint submitted to the Bureau of Cannabis Control. The Sacramento Police Department assisted with serving the search warrant.
MedMen’s First Quarterly California Return Puts Apple To Shame (CA – Cannabusiness)
The Fresh Toast (August 27, 2018) When retailers measure success, one of their most important tools is the revenue per square foot equation. While Apple topped the world again last year, clocking in at $5,546 per square foot, and, according to the Motley Fool, the fine jewelry retailer Tiffany & Co. came in at a snazzy $2,951 per square foot, MedMen beat them both with their recent revenue report. The quarter ended for MedMen on June 30, 2018 and their revenue per square foot came in at an astounding $6,541. Meaning, in one stretched sense of the takeaway, that cannabis is more precious than high end tech or perfectly cut diamonds.
Former L.A. Mayor Villaraigosa Joins Board Of Local Cannabis Firm MedMen (CA – Cannabusiness)
Los Angeles Times (August 29, 2018) Former L.A. Mayor Antonio Villaraigosa is joining the board of publicly traded cannabis company MedMen, marking his return to the business world following a resounding defeat in June’s Democratic gubernatorial primary. MedMen, a Culver City company that operates high-end cannabis shops in California, Nevada and New York and has aggressive expansion plans, announced Villaraigosa’s appointment Wednesday morning. Villaraigosa adds political and governmental experience to a board made up of branding, entertainment and accounting executives.
YOLO County Cannabis Greenhouse Installation Advances, Marks Largest Sale This Year For Smart Cannabis Corp. (CA – Cannabis Cultivation)
Nasdaq (August 29, 2018) Smart Cannabis Corp. announced significant development in fulfilling the contract with CompassLeaf LLC at their Yolo County, CA cannabis cultivation site. On track to be completed in September, the company reports this sale to be in excess of $600,000, a deposit has been received. Included within contract with Smart Cannabis Corp. subsidiary Next Generation Farming, which is centered on the installation and retrofitting of eight 30’x96′ (23,040 sq.ft.) pre-existing greenhouse frames, involves upgrading all the skeletons with black-out lighting for optimizing cannabis growth and flowering cycles, large exhaust fans for temperature control and air circulation, wet wall for humidification and evaporative cooling, radiant flooring and heating systems, automated irrigation systems, and automated curtain systems.
Why Is Homegrown Cannabis Federally Illegal? (USA – Cannabis Cultivation)
Forbes (August 29, 2018) Medical marijuana patients often ask why, if their state allows it, they cannot legally grow their own cannabis plants at home for personal use that does not impact interstate commerce. Many patients feel that it is less expensive and more fun cultivating cannabis in their closet, or in a more sophisticated grow box, rather than having to pay high prices for their medicine, which is not covered by health insurance. Similar questions stem from there. If states including California or Massachusetts allow its citizens to have homegrown, or medical marijuana, why is that not federally legal? Why is it federally illegal for people to grow their own cannabis, if it is only for personal use, and there is no monetary transaction which involves commerce?
With A Wave Of Consolidation, The Cannabis Industry Rises To The Next Level (USA – Cannabis Industry)
Forbes (August 29, 2018) At the end of July, the cannabis industry watched as two Canadian companies set a new record. Aurora Cannabis acquired MedReleaf (another Canadian cannabis producer) for CA$3.2 billion — $2.3 billion in U.S. dollars. This, the largest cannabis acquisition to date, created a company capable of producing 570,000 kilograms of high-quality cannabis per year at a cost of below $1 per kilogram. It was a validating moment for those of us in the industry. Cannabis as a business is still in its infancy. For the most part, we’re a group of entrepreneurs who were willing to take a chance on a product that, until recently, might have landed us in jail (or, at least, in some trouble with state authorities).
How Tax Lawyers Are Advising Cannabis Clients (USA – Cannabis Operations)
The Recorder (August 28, 2018) With some form of marijuana now legal in 31 states and the District of Columbia, the nation may be marching toward the end of cannabis prohibition. The Internal Revenue Service, however, is moving to a very different legal beat. Last month, the U.S. Circuit Court of Appeals for the Tenth Circuit upheld the federal tax agency’s power to block state-legal marijuana operators from deducting certain business expenses from their taxes. The IRS derives its authority from Section 280E of the Internal Revenue Code, which bars companies from taking those deductions if they “traffic” in Schedule 1 drugs.
Legal Marijuana Industry Tries To Shake ‘Stoner’ Stereotypes (USA – Cannabis Cliché)
U.S. News (August 29, 2018) Michelle Janikian, who writes about marijuana for publications like Herb, Playboy and Rolling Stone, says after she tells someone what she does for a living, she usually spends the rest of the conversation “trying to act so friendly and mainstream” so they don’t think she’s stoned. Adam Salcido relates that after he went to work a couple of years ago for a Southern California company that helps organize weed-infused events like Hempfest and Cannabis Cup, he had to reassure his family he wouldn’t turn into a drug addict.
Weed Stocks Are Surging After One Of Canada’s Largest Cannabis Companies Doubled Its Quarterly Sales (Canada – Cannabis Investments)
Markets Insider (August 29, 2018) After a brief selloff earlier in the week, shares of Tilray — the second-largest publicly traded marijuana stock — were up more than 17% Wednesday after the Canadian company posted quarterly sales nearly double a year ago. For the second quarter, Tilray reported revenue of $9.7 million — topping an the $9.02 million was expected and up from $4.9 million a year ago. The company’s bottom line was also better-than-expected, coming in at an adjusted loss of $0.17 per share where Wall Street analysts had expected $0.85. Prices per gram of cannabis rose 3% from $6.20 to $6.38. The company’s chief executive told analysts on a conference call that this uptick was thanks to higher potency weed, but that it was also hampered by some wholesale deals.
Oregon Weed Advocates Contemplating Ballot Measure To Legalize Cannabis Cafes (OR – Public Consumption)
Willamette Week (August 28, 2018) The cannabis advocacy group the New Revenue Coalition wants Oregon lawmakers to expand the number of places where consumers can light up. Currently, Oregon law effectively restricts cannabis consumption to private residences but many landlords don’t allow renters to smoke in rented properties. Sam Chapman, a spokesman for the New Revenue Coalition, says his group will push lawmakers in 2019 to legalize, license and regulate cafes and lounges specifically dedicated to cannabis consumption. The group also plans to begin gathering signatures for a 2020 ballot measure as a back-up plan.