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Australian Government Wants To See Evidence That Cannabis Legalization Works

Last month the Australian Capital Territory (ACT) became the first jurisdiction in Australia to legalize cannabis for adult use. The ACT measure allows adults 18 years old or older within its jurisdiction to possess up to 50 grams of cannabis and cultivate up to two plants. The measure did not legalize cannabis sales.

It did not take long for Australia’s federal government to take issue with the measure’s passage, despite the measure not taking effect immediately. The measure was coupled with increases in substance addiction services in the ACT, yet despite that, Australia’s federal government is coming out strong against the measure citing societal ‘health concerns.’ Per ABC News:

Federal Health Minister Greg Hunt has penned a letter to ACT Chief Minister Andrew Barr, calling on him to produce any evidence he considered before supporting the legislation, regarding the health impacts of cannabis.

“I call on you to explain whether the ACT Government considered the international evidence on the health effects of cannabis and to provide any evidence to the contrary,” he wrote.

Cannabis has been found by a number of studies and personal patient experiences to possess tremendous wellness benefits. The cannabis plant can be used to treat a number of conditions. Below are examples of studies that have found that cannabis use is associated with better brain health:

  • “Marijuana use is estimated to reduce premature deaths from diabetes mellitus, cancer, and traumatic brain injury by 989 to 2,511 deaths for each 1% of the population using Cannabis. The analysis predicts an estimated 23,500 to 47,500 deaths prevented annually if medical marijuana were legal nationwide.” - Indiana University South Bend (2017)
  • “Results suggest that an ultralow dose of THC that lacks any psychotrophic activity protects the brain from neuroinflammation-induced cognitive damage and might be used as an effective drug for the treatment of neuroinflammatory conditions, including neurodegenerative diseases” - Fishbein-Kaminietsky, M., Gafni, M. and Sarne, Y. (2014)
  • “A positive THC screen is associated with decreased mortality in adult patients sustaining traumatic brain injury.” - Nguyen BM, Kim D, Bricker S, Bongard F, Neville A, Putnam B, Smith J, Plurad D. (2014)
  • “Various cannabinoids rescue dying neurones in experimental forms of acute neuronal injury, such as cerebral ischaemia and traumatic brain injury.” - Grundy RI (2002)
  • “A synthetic substance similar to ones found in marijuana stimulates cell growth in regions of the brain.” - University of Saskatchewan (2005)

Below are examples of studies that have found that cannabis is associated with effective pain management:

Below are examples of how cannabis is associated with a reduction of the use of harmful opioids:

  • “Many pain patients substituted prescription medications with cannabis (41.2-59.5%), most commonly opiates/opioids (40.5-72.8%).” - Baron, Lucas, Eades, Hogue (2018)
  • “Medical cannabis laws produce a statistically significant decrease in opioid prescription rates.” - Biles (2018)
  • “The treatment of chronic pain with medicinal cannabis in this open-label, prospective cohort resulted in improved pain and functional outcomes, and a significant reduction in opioid use.” - Haroutounian S, Ratz Y, Ginosar Y, Furmanov K, Saifi F, Meidan R, Davidson E. (2016)
  • “Cannabis use may decrease the use of other prescription medicines, including opioids.” - Abuhasira, Schleider, Mechoulam, Novack (2018)
  • “By the end of the 21 month observation period, MCP enrollment was associated with 17.27 higher age- and gender-adjusted odds of ceasing opioid prescriptions (CI 1.89 to 157.36, p = 0.012), 5.12 higher odds of reducing daily prescription opioid dosages (CI 1.56 to 16.88, p = 0.007), and a 47 percentage point reduction in daily opioid dosages relative to a mean change of positive 10.4 percentage points in the comparison group (CI -90.68 to -3.59, p = 0.034). The monthly trend in opioid prescriptions over time was negative among MCP patients (-0.64mg IV morphine, CI -1.10 to -0.18, p = 0.008), but not statistically different from zero in the comparison group (0.18mg IV morphine, CI -0.02 to 0.39, p = 0.081). Survey responses indicated improvements in pain reduction, quality of life, social life, activity levels, and concentration, and few side effects from using cannabis one year after enrollment in the MCP (ps<0.001).” - Vigil, Stith, Adams, Reeve (2017)
  • “Among respondents that regularly used opioids, over three-quarters (76.7%) indicated that they reduced their use since they started medical cannabis.” - Piper BJ1,2,3, DeKeuster RM4,5, Beals ML6, Cobb CM4,7, Burchman CA8,9, Perkinson L10, Lynn ST10, Nichols SD11, Abess AT12 (2017)
  • “Among study participants, medical cannabis use was associated with a 64% decrease in opioid use (n = 118), decreased number and side effects of medications, and an improved quality of life (45%). This study suggests that many CP patients are essentially substituting medical cannabis for opioids and other medications for CP treatment, and finding the benefit and side effect profile of cannabis to be greater than these other classes of medications.” - Boehnke KF, Litinas E, Clauw DJ. (2016)
  • “Sixty seven percent of patients stopped using opioid medications after using medical cannabis. In addition, 29 percent of patients reported a decrease in the number of opioid medications after starting medical cannabis.” - Aclara Research (2017)
  • “All prescriptions for scheduled medications must be reported to the New Mexico Prescription Monitoring Program with opiates and benzodiazepines being the two most common. Based on these prescription records, patients enrolled in the medical cannabis program reduced the monthly average number of prescriptions, types of prescriptions (drug classes), number of prescribers, and number of related pharmacy visits. 71% of medical cannabis program enrollees either ceased or reduced their use of scheduled prescriptions within 6 months of enrolling.” - Stith, S. S., et al (2017)
  • “The growing body of research supporting the medical use of cannabis as an adjunct or substitute for opioids creates an evidence-based rationale for governments, health care providers, and academic researchers to consider the implementation and assessment of cannabis-based interventions in the opioid crisis.” - Philippe Lucas (2017)
  • “The majority of patients in this study believed that medical marijuana is a valid treatment and that it does have a role in reducing post-injury and post-operative pain. Those patients who used marijuana during their recovery felt that it alleviated symptoms of pain and reduced their opioid intake.” - Heng, Marilyn MD, MPH, FRCSC; McTague, Michael F. MPH; Lucas, Robert C.

The studies listed above are just the tip of the iceberg. Cannabis use is not harmful to society – cannabis prohibition is harmful to society. The successful ACT reform measure will help law enforcement focus on fighting real crime. The territory will also save a considerable amount of public revenue from not having to enforce such a harmful, failed public policy.

Health Minister Greg Hunt is asking what was taken into consideration by ACT lawmakers prior to passing the legalization measure? The concerns that are being raised by Minister Hunt never became a reality in the growing list of jurisdictions that have legalized cannabis in various parts of the world, which begs the question – what exactly did Minister Hunt consider prior to starting his reefer madness campaign directed at the sensible law passed in the ACT? Was it science and logic, or was it outdated, harmful political opinions?

Nevada Governor Forms Task Force After Report Of Failed Foreign Corruption Effort

A report came out this week involving a failed attempt by a group with Ukranian ties that were reportedly trying to obtain a Nevada cannabis business license via corrupt means. 

The report has resulted in Nevada’s Governor forming a task force to investigate any possible corruption in the state’s emerging legal cannabis industry.

A federal court indictment was filed on Friday in New York which charged four men with illegally funneling foreign money to political campaigns in the United States.

The indictment detailed how the men missed a September 2018 adult-use cannabis license application deadline and then reportedly organized an effort to try to convince Nevada’s Governor to change industry rules.

Contributions of $10,000 to the failed campaigns of Republican gubernatorial candidate Adam Laxalt and Republican attorney general candidate Wesley Duncan were determined to be part of the indictment once the indictment was crossreferenced with Nevada state political contribution records.

In addition to Laxalt and Duncan, the indictment also detailed troubling allegations involving one of the biggest cannabis opponents to ever serve in Congress, former Texas Republican Representative Pete Sessions. Pete Sessions was defeated in the 2018 election.

Nevada Governor Steve Sisolak issued the following press release on Friday after the indictment was filed:

Today, the Governor released the following statement regarding ongoing issues surrounding the legalized marijuana market as well as his immediate response in the form of a multi-state agency special task force:

The Governor is outraged by yesterday’s news that a foreign national attempted to influence Nevada’s elections through a million-dollar laundering scheme in order to gain a marijuana license and enter our legalized market.

Yesterday’s indictments and their connections to Nevada, in combination with ongoing issues in Nevada’s legalized marijuana industry – such as illegal sales to minors, serious allegations of manipulated lab results, and a licensing process mired in litigation – have led the Governor to expedite regulatory and enforcement measures. Many of these enhanced measures were originally intended to be implemented at the start of the Governor’s Cannabis Compliance Board, but in the interest of time and the public health and safety of Nevadans, the Governor has formed a multi-state agency special task force to root out potential corruption or criminal influences in Nevada’s marijuana marketplace, effective immediately. Any marijuana entity – licensed or unlicensed – that violates the law will see swift and severe criminal and regulatory action.

The Governor is disappointed in the lack of oversight and the inaction from the state over many years that led us to this critical juncture – including the apparent absence of a single criminal referral by the Marijuana Enforcement Division since the inception of licensed marijuana sales, medical or recreational, in Nevada. Governor Sisolak’s administration is taking immediate action in order to protect the health and safety of Nevadans, the jobs created by the industry, and the long-term sustainability of education funding generated from the legalized marketplace.

Is A Regulated Adult-Use Cannabis Industry Coming To Mexico Soon?

Last year Mexico’s Supreme Court ruled that the country’s cannabis prohibition policy is unconstitutional. Mexico became, in a way, the third country to legalize cannabis, albeit via a court decision. Uruguay and Canada legalized cannabis for adult-use via the political process.

Mexico’s Supreme Court directed lawmakers to craft and approve cannabis legalization by the end of October 2019. We are, of course, in the middle of October 2019. It appears that lawmakers feel confident that they will meet the deadline, which was first reported by Marijuana Moment. Per the report:

The Senate leader of Mexico’s ruling party said that the lawmakers will vote on a bill to legalize marijuana for adult use by the end of the month.

There are numerous pieces of legalization legislation already on the table, but Sen. Ricardo Monreal of the MORENA party said his chamber is nearly done crafting a new reform bill that will be the product of weeks of public forums and open-session debates. Members of the other half of Mexico’s legislature, the Chamber of Deputies, will be invited to weigh in on the bill.

“We’re thinking that we’ll bring the law out, approve it, at the end of October,” Monreal said. “That’s the schedule we have.”

A number of pieces of legislation have been introduced and/or floated by various politicians in Mexico. However, from afar it appears that Senator Monreal’s bill has the greatest chance of actually becoming law.

As the push for legalization legislation moves along in Mexico, many entrepreneurs are wondering what it means in regards to the chances of a legal adult-use cannabis industry in Mexico becoming a reality. The ruling by Mexico’s Supreme Court did not call for a regulated cannabis industry.

Rather, it determined that personal possession, use, and cultivation of cannabis should be legal and the Court tasked lawmakers with making it officially happen. Mexico has been operating in a gray area while lawmakers work to pass the required legislation.

In the immediate future, assuming lawmakers get the job done, Mexico’s adult-use cannabis policy will be more like that of Washington D.C. and Vermont compared to Canada and states in the U.S. that have legal adult-use industries. Consumers will be able to gift cannabis, however, that’s the extent to which cannabis can legally change hands between consumers for adult-use purposes.

That will obviously limit the business opportunities for entrepreneurs that are looking to start-up in Mexico. Legislation creating a regulated adult-use industry will hopefully follow shortly after lawmakers in Mexico meet the Supreme Court’s mandate. Ultimately, only time will tell if that actually occurs, but luckily momentum for such a move appears to be building.

Sign Up To Receive The International Cannabis Chronicle Newsletter

These are truly exciting times for all things cannabis. Cannabis policy reform is sweeping the globe, the cannabis industry is growing at an epic rate, and major cannabis culture news is occurring at an increasing pace.

It can be very difficult to stay up-to-date on everything that is happening in the cannabis world with so much going on at all hours of the day. Cannabis has gone mainstream, and the rise in the level of acceptance of cannabis in society has been paralleled by an increase of news coverage that touches on topics and situations that are not necessarily that important in the grand scheme of things.

For many cannabis consumers, entrepreneurs, and policymakers it can be exhausting to try to sort out the less important stories from the truly important ones due to so much cannabis media white noise. However, at the same time, it is vital for people in the cannabis community at all levels to stay on top of things. It’s a very frustrating catch-22.

To help address the problem the International Cannabis Business Conference launched a new e-mail newsletter, the International Cannabis Chronicle, which covers the most important cannabis news and developments from around the globe.

International Cannabis Chronicle is delivered straight to subscribers’ e-mail inboxes once a week. It’s an extremely convenient way to stay up to-to-date on the most important cannabis information.

If staying up to speed on the biggest cannabis stories is important to you, make sure to sign up to receive the International Cannabis Chronicle newsletter today. You will be glad that you did!

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Poll Finds That Support For Legalization In California Has Increased Since 2016

When it comes to cannabis in the United States, California is a pioneer. California was the first state to legalize cannabis for medical use (1996), and while it wasn’t the first to legalize cannabis for adult use, it is still the largest legal cannabis market in the country.

California voters overwhelmingly approved a cannabis legalization initiative in 2016. Nearly 3 years later, support has increased. That’s per poll results from a recent poll conducted by UC Berkeley Institute of Governmental Studies on behalf of the Los Angeles Times. Below are a couple of excerpts from the poll’s results:

According to the poll, 68% of Californians say legalization has been a good thing for the state, an increase in support since 2016, when 57% of voters approved Proposition 64, which legalized growing, selling and possessing cannabis for recreational use…

..the poll found that 63% of California voters favored their cities giving permits to cannabis stores, with support in all areas of the state, including 69% in Los Angeles County. The lowest support for pot shops was in the Inland Empire, which includes Riverside and San Bernardino counties, at 54%.

The implementation of a regulated adult-use cannabis industry in California has been tough. That should not come as a shock to anyone considering how large California’s population is, and how long the state had a medical cannabis industry that operated within a patchwork of often-conflicting public policies and regulations.

Local cannabis industry bans have not helped matters at all. Local communities should be embracing the cannabis industry, not continuing to prohibit it. Prohibition never works, including at a local level. Consumers should be able to make legal purchases at regulated cannabis stores, otherwise, they often turn to an unregulated market which is undesirable for a number of reasons.

Cannabis dispensaries have been associated with lower crime rates and increased property values, and that benefits all community members, not just cannabis consumers and cannabis entrepreneurs. Why prohibit them?

California’s cannabis industry is far from having reached its full potential, however, it’s encouraging to see that support for legalization has increased since legalization was passed in 2016. Cannabis opponents claimed that California voters would regret supporting legalization. That is clearly not the case.

Hopefully local lawmakers in areas that have cannabis industry bans listen to their voters and finally allow the industry to operate in their jurisdictions, and in the process, create local jobs, boost local economies, generate local government revenue, and provide other benefits.

We will be discussing local California cannabis laws and regulations at our upcoming International Cannabis Business Conference in San Francisco on February 6-7, 2020. Come join the conversation!

Australian Capital Territory Becomes First Jurisdiction To Legalize Adult-Use Cannabis

Advocates have long stated that if national cannabis reform cannot be achieved in a particular country, to aim for a more localized victory. That’s not to say that efforts to reform national laws should be abandoned, however, racking up victories at the local level helps build momentum for a nationwide victory.

A localized win occurred this week in Australia, where lawmakers in the Australian Capital Territory passed a measure that legalizes cannabis for adult use. Per BBC:

Lawmakers in the territory passed a landmark bill on Wednesday allowing adults to possess up to 50 grams of the drug and to grow four plants at home.

Personal cannabis use remains prohibited elsewhere in Australia, but medicinal use was legalised in 2016.

The territory’s law could be overturned if challenged at a federal level.

The distribution of cannabis still remains illegal in the territory, and adult-use cannabis is still illegal at the national level in Australia. No challenges to the local law have surfaced as of this blog post, however, that could change as time goes along.

Hopefully it doesn’t have to get to that point. As time goes on other jurisdictions will hopefully see that the sky has not fallen over the Australian Capital Territory, and lawmakers in those jurisdictions in Australia will get on the right side of history and pass similar reform measures.

If enough local victories occur and the policy changes are successful, it will increase the chances of a victory at the national level in Australia. Cannabis prohibition is a failed public policy wherever it exists, including in Australia, and thus any efforts to end cannabis prohibition should be embraced by everyone including non-cannabis consumers.

The U.S. House Passed A Cannabis Banking Bill – What Happens Next?

Today was a truly historic day in the United States House of Representatives. The full chamber passed, for the first time ever, a stand-alone cannabis reform bill. The bill is the SAFE Banking Act (H.R. 1595). In its current form the bill would:

  • Prevent federal banking regulators from punishing banks for working with state-legal cannabis and hemp-related businesses
  • Protect ancillary cannabis industry businesses from being charged with certain financial crimes related to cannabis’ Schedule I federal status
  • Require the Financial Institution Examination Council to develop guidance to help educate credit unions and banks on how to work with state-legal cannabis companies
  • Allow traditional lending from financial service providers to small businesses, and require regular reporting on cannabis industry loan practices involving women and people of color

The bill passed with bipartisan support, with the measure passing by a vote of 321-103 and receiving ‘yea’ votes from nearly half of voting Republicans in the chamber. The National Cannabis Industry Association has been working on educating lawmakers about the need for this legislation for a long time and deserves an enormous hat tip for its efforts.

“Having worked alongside Congressional leaders to resolve the cannabis industry’s banking access issues for over six years, it’s incredibly gratifying to see this strong bipartisan showing of support in today’s House vote,” said Aaron Smith, executive director of the National Cannabis Industry Association (NCIA). “We owe a great debt of gratitude to the bill sponsors, who have been working with us to move this issue forward long before anyone else thought it was worth the effort.”

“Now, it’s time for the Senate to take swift action to approve the SAFE Banking Act so that this commonsense legislation can make its way to the President’s desk,” continued Smith. “This bipartisan legislation is vital to protecting public safety, fostering transparency, and leveling the playing field for small businesses in the growing number of states with successful cannabis programs.”

The historic nature of today’s vote cannot be understated. This is the first time that a full chamber of Congress has passed a bill that contained solely cannabis reform provisions in it, as pointed out by NORML Political Director Justin Strekal.

“For the first time ever, a supermajority of the House voted affirmatively to recognize that the legalization and regulation of marijuana is a superior public policy to prohibition and criminalization,” Strekal stated in a press release.

The logical question is now being asked, ‘what happens next?’ The U.S. Senate already has a cannabis banking bill introduced (S. 1200) in its chamber. The bill was introduced in April by Senators Cory Gardner (R-CO) and Jeff Merkley (D-OR). Banking Committee Chairman Mike Crapo (R-ID) has stated recently that cannabis banking legislation is being seriously considered in his chamber. Will it get a vote?

Larger political forces are at play, and that has resulted in a blockade of sorts for legislation coming from the House to the Senate. The provisions of this particular legislation could actually get fair consideration in the Senate now that the House vote has put the spotlight completely on the Senate chamber.

The bill received bipartisan support in the House, and a significant amount of it. Cannabis banking reform in the Senate also has bipartisan support. This bill would benefit the hemp industry, and that is a policy area that Senator Mitch McConnell supports, which is significant.

Will it all be enough to push the bill over the top? We have no choice but to wait and see. In the meantime, all cannabis industry eyes will be on the Senate. Step up and do your part and urge your Senators to get on board!

Report: U.S. House To Vote On Cannabis Banking Bill This Week

The SAFE Banking Act would reform federal law to allow for better access to the nation’s financial system for cannabis companies.

Many cannabis companies have had their assets frozen and/or accounts closed simply because they were involved in the cannabis industry. Other cannabis companies were unable to open an account in the first place due to the policies of many financial institutions.

Local credit unions have been increasingly filling the void in the United States, however, the situation is still far from optimal. A reported vote in the United States House of Representatives for the SAFE Banking Act could change that. Per NORML:

Majority Leader Hoyer on Friday announced that members of the House are anticipated to hold a floor vote next week on The SAFE Banking Act (HR1595), which explicitly permits banks and other financial institutions to work directly with state-legal marijuana businesses.

“The upcoming banking vote is an important first step by Congress, but in no way should it be the last,” said NORML Political Director Justin Strekal. “Much more action will still need to be taken by lawmakers, in particular efforts to move forward and pass comprehensive reform legislation like The MORE Act — which is sponsored by the Chair of the House Judiciary — in order to ultimately comport federal law with the new political and cultural realities surrounding marijuana.”

Only time will tell if the vote actually occurs. The bill is co-sponsored by over 1/3rd of the entire chamber, so if the bill actually does get a vote its chances of passing are strong.

It’s unclear what appetite the United States Senate will have for the bill. Senate Majority Leader Mitch McConnell has famously opposed virtually every bill that has come out of the House. Will this bill be different?

The first step to finding out will be if/when the House votes to pass the SAFE Act. All eyes from the cannabis community will be on the House this week to see if the historic vote takes place.

Ready, Steady, Rec Market Europe?

By Marguerite Arnold

There is a decided trend in Europe this year, driven in large part by frustration if not a political necessity. Recreational cannabis trials are starting to place pins in the map. They may not be large, and in some ways easy to sneeze at. However, the recreational bug has landed in the EU. The dominoes are starting to fall here too.

Is this the end of the fight? Certainly not. Plus of course, recreational market start almost inevitably pushes medical issues and the patients who face them, plus the financial hit of buying uncovered medicine, to the backroom once again.

Regardless, steps forward are definitely markers for victory. Below is a handy guide for recreational trials springing up like mushrooms in a European market near you.

Switzerland

The Swiss put the issue on the map in a big way when they announced that they are creating recreational trials based out of pharmacies basically. Depending on where you are, you will be able to buy recreational products from Swiss apothekes in near future if not already. Plus of course, your medicine.

Luxembourg

Like the Swiss in their approach to the issue but within the actual EU, Luxembourg has been a strategic chess piece in the European puzzle ever since last year. Right as the German Deutsche Börse was about to pull the plug on German investing in the public markets, Luxembourg stepped in and saved the day by changing its own medical law to allow equity markets to clear stock purchases three weeks after the German ban, thus putting the entire issue back in play. The country’s new Green government has put full country recreational on the legislative map within the next five years and are moving to implement the law within two.

Denmark

Long the home of a hippie commune and fairly open cannabis market that is world-famous (although recently wracked by violence and black market disruption), the Danish are taking to cannabis pretty much like, well, bacon. With a countrywide medical trial (that allows producers to ship into the German market), the first Danish city has just announced a rec trial. Berlin is almost certainly “green” with envy at this point. Next stop Kreuzburg anyone? It is unlikely but clearly a priority for German activists, for starters.

Holland

However easy it is to laugh off news of any recreational trial in the home of the coffee shop, yes indeed, Holland is now stepping up to the plate with a “recreational” trial of its own. Basically this will be a further institutionalization of the legalizing market here over the last five years. However, it is also clear that the Dutch do not want to be considered a backwater on this now the subject is finally moving. If not globally hip.