CCMA Greenbrief December 21st: CA Lab Testing Fees May Increase By 50%…800+ Batches Recalled After Sequoia Lab Fallout, Impacting 29 Companies…….FDA Says Hemp Won’t Be Easy To Regulate…

CCMA Political  greenBrief

Friday, December 21, 2018

FDA Commissioner Scott Gottlieb Says That Hemp Cannot Be Regulated As Easy As Other Products Since It Is A Close Relative To Cannabis


“We treat products containing cannabis or cannabis-derived compounds as we do any other FDA-regulated products — meaning they’re subject to the same authorities and requirements as FDA-regulated products containing any other substance. This is true regardless of the source of the substance, including whether the substance is derived from a plant that is classified as hemp under the Agriculture Improvement Act.”
FDA Commissioner Dr. Scott Gottlieb On The Federal Legalization Of Hemp
“When you get product to market and when you get revenue back in is important. When you include testing in the cash-flow picture, it slows things down, and Phase 3 is going to slow it down even more.”
John Oram, President & CEO Of Oakland Based Nug, On Phase 3 Testing Regulations

California Marijuana Industry Braces For ‘Another Enormous Burden’ From Next Phase Of Testing Costs (CA – State Regulations)

Marijuana Business Daily (December 20, 2018) A new round of regulations in California will cause laboratory testing fees to increase more than 40%-55% for some of the state’s licensed cannabis cultivators as well as makers of concentrates and infused products, according to industry experts. They require all harvested cannabis and marijuana products to be tested for heavy metals and mycotoxins, or toxins created by mold. Products whose labels make terpene claims will also be subject to terpenoid tests, and solid and semi-solid edibles and inhalable cannabis products will be subject to water activity tests to measure the amount of available water in them.


Tactics Used By California Cannabis Businesses As They Transition To New Testing Requirements (CA – State Regulations)

Marijuana Business Daily (December 20, 2018) In January, California’s licensed marijuana cultivators and concentrates and infused product manufacturers will be required to test all harvested cannabis and marijuana products under the new so-called Phase 3 rules, which are detailed in this related story. All cannabis goods harvested or manufactured before Dec. 31 can be sold if they meet Phase 1 or Phase 2 testing requirements. But that doesn’t mean companies should delay testing for Phase 3.


California Issues Recalls For 29 Marijuana Firms Caught In Sequoia Labs Fallout (CA – Cannabis Issues)

Marijuana Business Daily (December 20, 2018) The California Bureau of Cannabis Control (BCC) this week identified 29 separate companies that have been told to recall marijuana products after Sacramento-based Sequoia Analytical Labs’ said its former lab director falsified pesticide test results. The BCC also released a list of 848 product batches that were tested by Sequoia after June 30 and may be subject to the recall.


Cannabis Lab Explosion In California Leads To $50,470 In Fines (CA – Cannabis Production)

Bloomberg Environment (December 20, 2018) A manufacturer of cannabis products faces $50,470 in proposed fines after an employee was burned in an explosion at a California facility. Santa Cruz-based Future2 Labs Health Services was cited for 10 alleged violations, including three regulatory, four general, and three serious accident-related, in connection with the explosion. The citations come more than a year after Cal/OSHA said on-the-job hazards in California marijuana industry don’t warrant new regulations.


Defining Cannabis Equity At The 2018 Emerald Cup (CA – Cannabis Events)

Cannabis Now (December 20, 2018) Unlike many cannabis business conferences, which cater towards the 3rd wave of the legal cannabis movement, the Emerald Cup is a festival for the first two waves: outlaw growers and cannabis activists. As a conference by outlaws for outlaws, it should come as no surprise that rather than one token panel on equity issues, there was an entire conference track devoted to equality, prisoner re-entry and creating a more inclusive industry.


Major California Cannabis Facility Approved Despite Crowds Of Protesters (CA – Cannabis Production)

The Epoch Times (December 19, 2018) A proposal to build a 4.4-acre cannabis facility was approved by the El Monte City Council on Dec. 19 after a marathon public hearing, despite an estimated 2,000 plus residents protesting the controversial proposal inside and outside the city hall. According to the city’s Planning Commission Staff Report, the proposed project will cultivate, process and distribute medicinal cannabis from a 71,658-square-foot building. The facility will produce about 13,000 pounds of cannabis every year.


‘Reefer Madness’ And Other Lies (CA – Cannabis History)

Santa Barbara Independent (December 19, 2018) Prior to 1914 when California became the first state to make it illegal, cannabis enjoyed an approximate 5,000-year run as the globe’s go-to healing plant. When the federal government outlawed it throughout the land, 29 states and at least 24 countries already had banned it. From the vantage point of hindsight being 20/20, history books give the following very simplified reasons for the smear campaign.


Salinas Valley Sees Green In Cannabis (CA – Cannabis Cultivation)

ABC 7 News (December 20, 2018) In the early 20th Century lettuce grown south of San Jose was shipped across the country in refrigerated train cars. That lettuce was hailed as “green gold” in the Salinas valley. John Steinbeck famously wrote about the Salinas Valley’s fertile soil. Everything from produce to flowers have flourished here over the last hundred years. But as the flower industry shifted to South America, it left many of the old greenhouses in Monterey County empty. That created the perfect opportunity for a different kind of plant, cannabis.


New Agriculture Bill Legalizes Hemp. That Doesn’t Mean It’s Unregulated. (USA – Hemp Industry)

NBC News (December 20, 2018) The new agriculture bill signed into law Thursday legalizes hemp — something activists have been supporting for years. But that doesn’t mean that hemp products containing certain cannabis-related compounds can be sold freely, the Food and Drug Administration said. The new law removes hemp from the Controlled Substances Act because it has such low levels of THC, the compound that gives marijuana cannabis its mood-changing properties. But that doesn’t mean people can just start selling hemp-derived cannabis products as medicine or as supplements.


Cannabis Investments Nearly Quadrupled In 2018 (USA – Cannabis Investments)

Fortune (December 20, 2018) This year has been a turning point in the maturing marijuana market. The spike in capital flowing into marijuana businesses in the last 12 months was driven by legislative changes both at the national level in Canada and at the state level in U.S. states like Michigan, Oklahoma and Utah. As public support for legalization grows, and growing public support for legalization—shifts that have given investors more confidence about backing companies in the space and enticed big players in the beverage and tobacco industries to make bets on cannabis products.


Anheuser-Busch Teams Up With Cannabis Company In $100M Project To Explore Pot Drinks (Canada – Cannabis Investments)

Chicago Tribune (December 20, 2018) The maker of Budweiser is partnering with medical cannabis company Tilray in a $100 million deal to research cannabis-infused drinks for the Canadian market. The alliance announced Wednesday is the latest foray by a major beer company into the cannabis business in Canada, which legalized recreational marijuana in October. Anheuser-Busch InBev and Tilray Inc. said each would invest $50 million in the project to study non-alcoholic drinks containing cannabidiol.