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Watching the Legalization Wave in Summer 2021: Week in Review

July 31, 2021 by CBD OIL

A pair of Ohio lawmakers officially put their plans into action July 30 by formally filing adult-use cannabis legislation in the state’s House—the first of its kind in the state.

Democratic Reps. Casey Weinstein and Terrence Upchurch, both representing Northeast Ohio districts, first introduced their 180-page bill two weeks ago, which includes four major components: decriminalization, a cannabis excise tax, commerce and licensing, and medical cannabis.

More specifically, the Ohio Medical Marijuana Control program would remain intact, and licensed operators could pursue additional licenses to enter the adult-use market.

According to a memo Weinstein and Upchurch sent to fellow House members two weeks ago, the bill would enable municipalities to restrict the type and number of cannabis establishments operating within their jurisdictions and require the Department of Commerce to adopt rules related to the licensure of cannabis businesses. And the bill would impose restrictions on the cultivation, processing, transportation and sale of cannabis.

Also, the legislation would allow adults 21 and older to buy and possess up to 5 ounces of cannabis and grow as many as 12 plants for personal use.

“It’s time to lead Ohio forward,” Weinstein said in a joint press release issued Friday. “This is a big step for criminal justice reform, for our veterans, for economic opportunity, and for our individual liberties.”

On the map, Ohio’s neighbor to the northwest, Michigan began commercial sales of adult-use cannabis in December 2019 and has attracted Ohioans’ business since. Meanwhile, Pennsylvania state lawmakers are knocking on legalization’s door to the east.

As for criminal justice reform, Ohio’s jails and prisons incarcerated 68,528 people in 2019. As of 2014, Blacks (1,625 per 100,000) were 5.6 times more likely to be locked up than white Ohioans (289 per 100,000), according to the U.S. Bureau of Justice Statistics.

In states that have already reformed cannabis prohibition, incarceration rates, especially for non-violent criminals, such as those who possess cannabis, have decreased dramatically. In Colorado, cannabis arrests plummeted 68% from 2012 to 2019.

The Ohio legislation would allow for adult cultivation and possession of cannabis and would allow for the expungement of conviction records for previous cultivation and possession offenses.

“This bill is much needed in Ohio, and it’s time for Ohio to become a national leader in marijuana decriminalization and legalization,” Upchurch said in the release. “This bill is more than just about legalization; it’s about economic and workforce development; it’s about decriminalization; and it’s about health care. The time is now, and I look forward to getting this done in a bipartisan fashion.”

The bill would also levy an 10% cannabis excise tax on retailers and microbusiness, with the revenue aimed to be distributed, in part, to secondary education and road infrastructure, as well as up to $20 million annually for two years to be used for clinical trials researching the efficacy of cannabis in treating medical conditions of veterans and preventing veteran suicide, according to the release. 

With the Ohio Legislature in session through the end of the year, the bill now awaits committee assignment.

Filed Under: Cannabis News

Colorado Creates Cannabis Business Office to Promote Social Equity

July 30, 2021 by CBD OIL

As a guinea pig for adult-use cannabis legalization, Colorado is often a target for prohibitionists trying to magnify what they consider shortcomings of the first state-legal market.

Two key arguments repeated by lawmakers voting against reform efforts include their concerns about how legalization might impact youth as well as the possible increase of impaired drivers on their state roadways.

In Minnesota, where House members discussed an adult-use bill for roughly five hours in May, before it passed via a 72-61 vote, Republican Rep. Glenn Gruenhagen took aim at Colorado in his efforts to deter passage of House File 600. While H.F. 600 did clear the House, it did not make its way through the Senate.

“Since recreational marijuana was legalized [in Colorado], traffic deaths in drivers which tested positive for marijuana increased 135 percent while all other traffic deaths increased 24 percent,” he said. “So, one of the members said, ‘This doesn’t cause death.’ Well, it does with increased traffic death.”

Gruenhagen went on and said, “One other finding is that marijuana use ages 12 and older increased 30% and is 76% higher than the national average, currently ranking third in the nation in Colorado.”

Lawmakers who oppose adult-use legalization in other states that have debated or passed bills this year have echoed similar reservations before casting their no votes.

While the representative from Minnesota declared to have non-partisan studies on his side, his claims have since been debunked (youth impacts) or gone unsubstantiated (traffic safety) by Colorado’s most recent biennial “Impacts of Marijuana Legalization” report, which was released this July and commissioned by the state’s Division of Criminal Justice.

After Colorado voters passed a ballot measure to fully legalize cannabis in the 2012 general election, possession and cultivation became legal on Dec. 10, 2012, when Gov. John Hickenlooper issued an executive action adding Amendment 64 to the state constitution. The commercial sale of cannabis to the general public under an established licensing system did not begin until Jan. 1, 2014. 

Before adult-use legalization, Coloradans legalized medical cannabis through a 2000 ballot measure. Data going back to 2005 is included in the commissioned report on the impacts of legalization, which was mandated by the Colorado General Assembly in 2013. 

The executive summary of this year’s report states: “The majority of the data sources vary considerably in terms of what exists historically, and the reliability of some sources has improved over time. Consequently, it is difficult to draw conclusions about the potential effects of marijuana legalization and commercialization on public safety, public health, or youth outcomes, and this may always be the case due to the lack of historical data.

“Furthermore, the measurement of available data elements can be affected by [the] very context of marijuana legalization. For example, the decreasing social stigma regarding marijuana use could lead individuals to be more likely to report use on surveys and also to health workers in emergency departments and poison control centers, making marijuana use appear to increase when perhaps it has not.”

Impact on Youth

According to the most recent report, the proportion of Colorado high school students reporting using cannabis ever in their lifetime remained statistically stagnant from 36.9% in 2013 to 35.9% in 2019. In addition, Colorado’s 2019 rate of 35.9% was slightly lower than the national rate of 36.8% of high school students reporting using cannabis ever in their lifetime.

For high school students who reported using cannabis in the past 30 days, Colorado’s 20.6% rate was slightly lower than the nation’s 21.7% rate in 2019. Neither the Colorado rate of use nor the national rate experienced significant changes from 2013 to 2019, according to the report.

“There was no statistically significant difference between Colorado student responses compared to national data,” the report stated. “The percentage of high school students reporting past 30-day use also remained stable, with no significant changes between 2005 and 2019.”

The data was gathered through the Healthy Kids Colorado Survey, which the Colorado Department of Public Health and Environment began administering to high school students in 2005, and to middle school students in 2013. The sample information included 46,537 high school students and 6,983 middle school students in 2019.

Meanwhile, the National Survey on Drug Use and Health is administered annually to those aged 12 and older by the federal Substance Abuse and Mental Health Services Administration, which the Colorado report uses to derive its comparisons.  

“The proportion of students trying marijuana before the age of 13 went down significantly in Colorado, from 9.2% in 2015 to 6.7% in 2019,” the Colorado report stated. “These findings were not statistically different from the national data.”

The report added that the trend of past 30-day cannabis use among high schoolers and middle schoolers showed “no significant changes occurred within any grade level [from sixth through 12th grade] between 2013 and 2019.”

Following are other highlights regarding youth impacts in the report:

  • In 2019, the prevalence of past 30-day cannabis use was significantly higher among Hispanic (23.2%), American Indian/Alaskan Native (26.7%), Native Hawaiian/Pacific Islander (29.4%), and multiple races (24.8%) compared to white (19.4%) and Asian (9.7%) high school students.
  • In 2019, past 30-day cannabis use rates increased by grade level, with 12th graders (26.9%) twice as likely to report using cannabis than ninth graders (13.3%)
  • Among those who use cannabis, the percent of high school students reporting dabbing cannabis in the past 30 days increased significantly from 2017 (20.3%) to 2019 (52.0%). In contrast, the percent reporting smoking cannabis decreased significantly from 2017 (88.4%) to 2019 (77.9%).
  • High school students’ perception of cannabis posing a moderate/great risk if used regularly decreased from 2011 (57.6%) to 2019 (50.1%)
  • High school students’ perception of easy access to cannabis decreased: 57.2% of students reported that it would be sort of/very easy to get cannabis in 2011, while 51.4% of students reported it would be sort of/very easy to get cannabis in 2019. 

Traffic Safety

The scope of driving under the influence of cannabis is difficult to gauge for several reasons, according to the report:

  1. There is no criminal charge that specifies that the driver is impaired by drugs instead of, or in combination with, alcohol. The current statute applies to driving under the influence of alcohol, drugs or a combination of the two.
  2. There is no central repository of toxicology results that would allow for an analysis of trends.
  3. At a traffic stop, law enforcement may choose not to pursue additional toxicology testing if the driver is exhibiting indications of impairment from alcohol. The additional time and cost required for further toxicology testing may not be considered worthwhile if the burden of proof for impairment is already being met by a blood-alcohol content (BAC) level.
  4. After an arrest, if the officer has probable cause to believe the suspect is impaired by drugs and/or alcohol, the officer may transfer the suspect to a location where blood can be drawn for further toxicology screening. The delta-9 tetrahydrocannabinol (THC) level in blood decreases rapidly in the first hour after use, then gradually thereafter, making prompt testing critical.
  5. Furthermore, high THC blood concentration does not perfectly correspond to impairment. Chronic cannabis users had measurable concentrations of delta-9 during a seven-day abstinence period. The highest level observed at the conclusion of the seven days was 3.0 nanograms per milliliter (the “permissible inference” driving limit is 5.0 ng/mL), as a result of THC being stored in fat and its ability to slowly release from the tissue. This becomes a problem for frequent and medicinal users who may continuously have THC detectable in their blood without noticeable impairing effects.

Also making it difficult to gauge the impact of cannabis legalization on traffic safety is “the increase in law enforcement officers who are trained in recognizing drug use—from 129 officers in 2012 to 221 in 2020—which can increase drug detection rates apart from any changes in driver behavior,” the report stated.

Going back to Minnesota Rep. Gruenhagen’s claim about Colorado experiencing increased traffic deaths among drivers who tested positive for THC since legalization, here is what the report found: the number of fatalities for drivers who tested positive for cannabinoids, or cannabinoids in combination of alcohol and/or other drugs, increased by 140%, from 55 in 2013 to 132 in 2019.

However, the report noted that the detection of any cannabinoid in one’s blood is not an indicator of impairment, but only indicates presence in one’s system. In Colorado traffic fatalities where at least one driver was drug tested, the percentage of those testing above the 5.0 ng/mL permissible inference level remained statistically unchanged from 2016 (14%) to 2019 (13%).

In a broader study of impaired drivers, the number of cases where drivers were screened for cannabinoids increased from 3,946 in 2016 to 5,032 in 2018; however, the percentage of those drivers testing positive for cannabinoids decreased from 73.1% to 66.3%. Those who tested at or above the 5.0 ng/mL limit rose slightly, from 47.5% to 49.6%, while the median level decreased from 5.9 ng/mL to 5.2 ng/mL from 2016 to 2018.

“The lack of comparable federal data across many metrics makes it difficult to compare changes in Colorado to other jurisdictions which may have not legalized marijuana,” the report stated. “In sum, then, the lack of pre-commercialization data, the decreasing social stigma, and challenges to law enforcement combine to make it difficult to translate these preliminary findings into definitive statements of outcomes.”

Public Safety

The total number of cannabis arrests have plummeted since legalization, dropping 68% from 2012 (13,225) to 2019 (4,290). Possession arrests, which make up the majority of all cannabis arrests, decreased by 71%, while sales arrests decreased by 56% and production arrests increased by 3%.

The overall steep decline included all races and ethnicities, but not at equal rates: cannabis arrests decreased by 72% among white individuals, 55% for Hispanics and 63% for Black Coloradans.

Moreover, the cannabis arrest rate for Blacks (160 per 100,000) was more than double that of white individuals (76 per 100,000) in 2019. “This disparity has not changed in any meaningful way since legalization,” the report stated.

Meanwhile, court filings related to cannabis declined 55% between 2012 (9,925) and 2019 (4,489). Filings fell by 67% for adults 21 or older.

And the number of cannabis plants seized on public lands—one indicator of an illicit market—has fluctuated significantly, from 46,662 seized plants in 2012, to a high of 80,826 plants in 2017, and down to a low of 1,502 plants in 2018.

General Health

The number of adults reporting cannabis use in the past 30 days increased significantly from 2014 (13.4%) to 2019 (19%), according to the report.

Following are some of the highlighted statistics regarding adult use:

  • Males have significantly higher past 30-day use (22.9%) than females (15.1%).
  • Adults 26-34 years old reported the highest past 30-day usage rates (29.4%), followed by 18-25-year-olds (28.8%), 35-64-year-olds (17.3%) and those 65 years and older (9.3%).
  • The cannabis usage rates of those 65 and older has more than tripled since 2014.
  • Those reporting smoking cannabis flower decreased from 87.2% of users in 2016 to 76.1% in 2019. This compares to increases in eating/drinking (35.2% in 2016 to 43% in 2019), vaping (22.9% in 2016 to 32% in 2019), and dabbing (16.8% in 2016 to 19.6% in 2019).

The number of calls to poison control centers mentioning human cannabis exposure increased over the past decade—from 41 calls in 2006 to 276 calls in 2019.

The overall rate of treatment admissions for those reporting cannabis as their primary substance of use decreased from 222 admissions per 100,000 population in 2012 to 182 admissions per 100,000 in 2019.

For youth aged 10 to 17 years old who were admitted for treatment for substance use in 2019, 73.5% reported cannabis as their primary substance of use. That rate has increased fairly steadily from 61.6% in 2008.

Filed Under: Cannabis News

Rhode Island Delays Medical Cannabis Dispensary Licensing Lottery

July 30, 2021 by CBD OIL

As a guinea pig for adult-use cannabis legalization, Colorado is often a target for prohibitionists trying to magnify what they consider shortcomings of the first state-legal market.

Two key arguments repeated by lawmakers voting against reform efforts include their concerns about how legalization might impact youth as well as the possible increase of impaired drivers on their state roadways.

In Minnesota, where House members discussed an adult-use bill for roughly five hours in May, before it passed via a 72-61 vote, Republican Rep. Glenn Gruenhagen took aim at Colorado in his efforts to deter passage of House File 600. While H.F. 600 did clear the House, it did not make its way through the Senate.

“Since recreational marijuana was legalized [in Colorado], traffic deaths in drivers which tested positive for marijuana increased 135 percent while all other traffic deaths increased 24 percent,” he said. “So, one of the members said, ‘This doesn’t cause death.’ Well, it does with increased traffic death.”

Gruenhagen went on and said, “One other finding is that marijuana use ages 12 and older increased 30% and is 76% higher than the national average, currently ranking third in the nation in Colorado.”

Lawmakers who oppose adult-use legalization in other states that have debated or passed bills this year have echoed similar reservations before casting their no votes.

While the representative from Minnesota declared to have non-partisan studies on his side, his claims have since been debunked (youth impacts) or gone unsubstantiated (traffic safety) by Colorado’s most recent biennial “Impacts of Marijuana Legalization” report, which was released this July and commissioned by the state’s Division of Criminal Justice.

After Colorado voters passed a ballot measure to fully legalize cannabis in the 2012 general election, possession and cultivation became legal on Dec. 10, 2012, when Gov. John Hickenlooper issued an executive action adding Amendment 64 to the state constitution. The commercial sale of cannabis to the general public under an established licensing system did not begin until Jan. 1, 2014. 

Before adult-use legalization, Coloradans legalized medical cannabis through a 2000 ballot measure. Data going back to 2005 is included in the commissioned report on the impacts of legalization, which was mandated by the Colorado General Assembly in 2013. 

The executive summary of this year’s report states: “The majority of the data sources vary considerably in terms of what exists historically, and the reliability of some sources has improved over time. Consequently, it is difficult to draw conclusions about the potential effects of marijuana legalization and commercialization on public safety, public health, or youth outcomes, and this may always be the case due to the lack of historical data.

“Furthermore, the measurement of available data elements can be affected by [the] very context of marijuana legalization. For example, the decreasing social stigma regarding marijuana use could lead individuals to be more likely to report use on surveys and also to health workers in emergency departments and poison control centers, making marijuana use appear to increase when perhaps it has not.”

Impact on Youth

According to the most recent report, the proportion of Colorado high school students reporting using cannabis ever in their lifetime remained statistically stagnant from 36.9% in 2013 to 35.9% in 2019. In addition, Colorado’s 2019 rate of 35.9% was slightly lower than the national rate of 36.8% of high school students reporting using cannabis ever in their lifetime.

For high school students who reported using cannabis in the past 30 days, Colorado’s 20.6% rate was slightly lower than the nation’s 21.7% rate in 2019. Neither the Colorado rate of use nor the national rate experienced significant changes from 2013 to 2019, according to the report.

“There was no statistically significant difference between Colorado student responses compared to national data,” the report stated. “The percentage of high school students reporting past 30-day use also remained stable, with no significant changes between 2005 and 2019.”

The data was gathered through the Healthy Kids Colorado Survey, which the Colorado Department of Public Health and Environment began administering to high school students in 2005, and to middle school students in 2013. The sample information included 46,537 high school students and 6,983 middle school students in 2019.

Meanwhile, the National Survey on Drug Use and Health is administered annually to those aged 12 and older by the federal Substance Abuse and Mental Health Services Administration, which the Colorado report uses to derive its comparisons.  

“The proportion of students trying marijuana before the age of 13 went down significantly in Colorado, from 9.2% in 2015 to 6.7% in 2019,” the Colorado report stated. “These findings were not statistically different from the national data.”

The report added that the trend of past 30-day cannabis use among high schoolers and middle schoolers showed “no significant changes occurred within any grade level [from sixth through 12th grade] between 2013 and 2019.”

Following are other highlights regarding youth impacts in the report:

  • In 2019, the prevalence of past 30-day cannabis use was significantly higher among Hispanic (23.2%), American Indian/Alaskan Native (26.7%), Native Hawaiian/Pacific Islander (29.4%), and multiple races (24.8%) compared to white (19.4%) and Asian (9.7%) high school students.
  • In 2019, past 30-day cannabis use rates increased by grade level, with 12th graders (26.9%) twice as likely to report using cannabis than ninth graders (13.3%)
  • Among those who use cannabis, the percent of high school students reporting dabbing cannabis in the past 30 days increased significantly from 2017 (20.3%) to 2019 (52.0%). In contrast, the percent reporting smoking cannabis decreased significantly from 2017 (88.4%) to 2019 (77.9%).
  • High school students’ perception of cannabis posing a moderate/great risk if used regularly decreased from 2011 (57.6%) to 2019 (50.1%)
  • High school students’ perception of easy access to cannabis decreased: 57.2% of students reported that it would be sort of/very easy to get cannabis in 2011, while 51.4% of students reported it would be sort of/very easy to get cannabis in 2019. 

Traffic Safety

The scope of driving under the influence of cannabis is difficult to gauge for several reasons, according to the report:

  1. There is no criminal charge that specifies that the driver is impaired by drugs instead of, or in combination with, alcohol. The current statute applies to driving under the influence of alcohol, drugs or a combination of the two.
  2. There is no central repository of toxicology results that would allow for an analysis of trends.
  3. At a traffic stop, law enforcement may choose not to pursue additional toxicology testing if the driver is exhibiting indications of impairment from alcohol. The additional time and cost required for further toxicology testing may not be considered worthwhile if the burden of proof for impairment is already being met by a blood-alcohol content (BAC) level.
  4. After an arrest, if the officer has probable cause to believe the suspect is impaired by drugs and/or alcohol, the officer may transfer the suspect to a location where blood can be drawn for further toxicology screening. The delta-9 tetrahydrocannabinol (THC) level in blood decreases rapidly in the first hour after use, then gradually thereafter, making prompt testing critical.
  5. Furthermore, high THC blood concentration does not perfectly correspond to impairment. Chronic cannabis users had measurable concentrations of delta-9 during a seven-day abstinence period. The highest level observed at the conclusion of the seven days was 3.0 nanograms per milliliter (the “permissible inference” driving limit is 5.0 ng/mL), as a result of THC being stored in fat and its ability to slowly release from the tissue. This becomes a problem for frequent and medicinal users who may continuously have THC detectable in their blood without noticeable impairing effects.

Also making it difficult to gauge the impact of cannabis legalization on traffic safety is “the increase in law enforcement officers who are trained in recognizing drug use—from 129 officers in 2012 to 221 in 2020—which can increase drug detection rates apart from any changes in driver behavior,” the report stated.

Going back to Minnesota Rep. Gruenhagen’s claim about Colorado experiencing increased traffic deaths among drivers who tested positive for THC since legalization, here is what the report found: the number of fatalities for drivers who tested positive for cannabinoids, or cannabinoids in combination of alcohol and/or other drugs, increased by 140%, from 55 in 2013 to 132 in 2019.

However, the report noted that the detection of any cannabinoid in one’s blood is not an indicator of impairment, but only indicates presence in one’s system. In Colorado traffic fatalities where at least one driver was drug tested, the percentage of those testing above the 5.0 ng/mL permissible inference level remained statistically unchanged from 2016 (14%) to 2019 (13%).

In a broader study of impaired drivers, the number of cases where drivers were screened for cannabinoids increased from 3,946 in 2016 to 5,032 in 2018; however, the percentage of those drivers testing positive for cannabinoids decreased from 73.1% to 66.3%. Those who tested at or above the 5.0 ng/mL limit rose slightly, from 47.5% to 49.6%, while the median level decreased from 5.9 ng/mL to 5.2 ng/mL from 2016 to 2018.

“The lack of comparable federal data across many metrics makes it difficult to compare changes in Colorado to other jurisdictions which may have not legalized marijuana,” the report stated. “In sum, then, the lack of pre-commercialization data, the decreasing social stigma, and challenges to law enforcement combine to make it difficult to translate these preliminary findings into definitive statements of outcomes.”

Public Safety

The total number of cannabis arrests have plummeted since legalization, dropping 68% from 2012 (13,225) to 2019 (4,290). Possession arrests, which make up the majority of all cannabis arrests, decreased by 71%, while sales arrests decreased by 56% and production arrests increased by 3%.

The overall steep decline included all races and ethnicities, but not at equal rates: cannabis arrests decreased by 72% among white individuals, 55% for Hispanics and 63% for Black Coloradans.

Moreover, the cannabis arrest rate for Blacks (160 per 100,000) was more than double that of white individuals (76 per 100,000) in 2019. “This disparity has not changed in any meaningful way since legalization,” the report stated.

Meanwhile, court filings related to cannabis declined 55% between 2012 (9,925) and 2019 (4,489). Filings fell by 67% for adults 21 or older.

And the number of cannabis plants seized on public lands—one indicator of an illicit market—has fluctuated significantly, from 46,662 seized plants in 2012, to a high of 80,826 plants in 2017, and down to a low of 1,502 plants in 2018.

General Health

The number of adults reporting cannabis use in the past 30 days increased significantly from 2014 (13.4%) to 2019 (19%), according to the report.

Following are some of the highlighted statistics regarding adult use:

  • Males have significantly higher past 30-day use (22.9%) than females (15.1%).
  • Adults 26-34 years old reported the highest past 30-day usage rates (29.4%), followed by 18-25-year-olds (28.8%), 35-64-year-olds (17.3%) and those 65 years and older (9.3%).
  • The cannabis usage rates of those 65 and older has more than tripled since 2014.
  • Those reporting smoking cannabis flower decreased from 87.2% of users in 2016 to 76.1% in 2019. This compares to increases in eating/drinking (35.2% in 2016 to 43% in 2019), vaping (22.9% in 2016 to 32% in 2019), and dabbing (16.8% in 2016 to 19.6% in 2019).

The number of calls to poison control centers mentioning human cannabis exposure increased over the past decade—from 41 calls in 2006 to 276 calls in 2019.

The overall rate of treatment admissions for those reporting cannabis as their primary substance of use decreased from 222 admissions per 100,000 population in 2012 to 182 admissions per 100,000 in 2019.

For youth aged 10 to 17 years old who were admitted for treatment for substance use in 2019, 73.5% reported cannabis as their primary substance of use. That rate has increased fairly steadily from 61.6% in 2008.

Filed Under: Cannabis News

Buckeye Duo Formally Files Adult-Use Cannabis Bill in Ohio

July 30, 2021 by CBD OIL

As a guinea pig for adult-use cannabis legalization, Colorado is often a target for prohibitionists trying to magnify what they consider shortcomings of the first state-legal market.

Two key arguments repeated by lawmakers voting against reform efforts include their concerns about how legalization might impact youth as well as the possible increase of impaired drivers on their state roadways.

In Minnesota, where House members discussed an adult-use bill for roughly five hours in May, before it passed via a 72-61 vote, Republican Rep. Glenn Gruenhagen took aim at Colorado in his efforts to deter passage of House File 600. While H.F. 600 did clear the House, it did not make its way through the Senate.

“Since recreational marijuana was legalized [in Colorado], traffic deaths in drivers which tested positive for marijuana increased 135 percent while all other traffic deaths increased 24 percent,” he said. “So, one of the members said, ‘This doesn’t cause death.’ Well, it does with increased traffic death.”

Gruenhagen went on and said, “One other finding is that marijuana use ages 12 and older increased 30% and is 76% higher than the national average, currently ranking third in the nation in Colorado.”

Lawmakers who oppose adult-use legalization in other states that have debated or passed bills this year have echoed similar reservations before casting their no votes.

While the representative from Minnesota declared to have non-partisan studies on his side, his claims have since been debunked (youth impacts) or gone unsubstantiated (traffic safety) by Colorado’s most recent biennial “Impacts of Marijuana Legalization” report, which was released this July and commissioned by the state’s Division of Criminal Justice.

After Colorado voters passed a ballot measure to fully legalize cannabis in the 2012 general election, possession and cultivation became legal on Dec. 10, 2012, when Gov. John Hickenlooper issued an executive action adding Amendment 64 to the state constitution. The commercial sale of cannabis to the general public under an established licensing system did not begin until Jan. 1, 2014. 

Before adult-use legalization, Coloradans legalized medical cannabis through a 2000 ballot measure. Data going back to 2005 is included in the commissioned report on the impacts of legalization, which was mandated by the Colorado General Assembly in 2013. 

The executive summary of this year’s report states: “The majority of the data sources vary considerably in terms of what exists historically, and the reliability of some sources has improved over time. Consequently, it is difficult to draw conclusions about the potential effects of marijuana legalization and commercialization on public safety, public health, or youth outcomes, and this may always be the case due to the lack of historical data.

“Furthermore, the measurement of available data elements can be affected by [the] very context of marijuana legalization. For example, the decreasing social stigma regarding marijuana use could lead individuals to be more likely to report use on surveys and also to health workers in emergency departments and poison control centers, making marijuana use appear to increase when perhaps it has not.”

Impact on Youth

According to the most recent report, the proportion of Colorado high school students reporting using cannabis ever in their lifetime remained statistically stagnant from 36.9% in 2013 to 35.9% in 2019. In addition, Colorado’s 2019 rate of 35.9% was slightly lower than the national rate of 36.8% of high school students reporting using cannabis ever in their lifetime.

For high school students who reported using cannabis in the past 30 days, Colorado’s 20.6% rate was slightly lower than the nation’s 21.7% rate in 2019. Neither the Colorado rate of use nor the national rate experienced significant changes from 2013 to 2019, according to the report.

“There was no statistically significant difference between Colorado student responses compared to national data,” the report stated. “The percentage of high school students reporting past 30-day use also remained stable, with no significant changes between 2005 and 2019.”

The data was gathered through the Healthy Kids Colorado Survey, which the Colorado Department of Public Health and Environment began administering to high school students in 2005, and to middle school students in 2013. The sample information included 46,537 high school students and 6,983 middle school students in 2019.

Meanwhile, the National Survey on Drug Use and Health is administered annually to those aged 12 and older by the federal Substance Abuse and Mental Health Services Administration, which the Colorado report uses to derive its comparisons.  

“The proportion of students trying marijuana before the age of 13 went down significantly in Colorado, from 9.2% in 2015 to 6.7% in 2019,” the Colorado report stated. “These findings were not statistically different from the national data.”

The report added that the trend of past 30-day cannabis use among high schoolers and middle schoolers showed “no significant changes occurred within any grade level [from sixth through 12th grade] between 2013 and 2019.”

Following are other highlights regarding youth impacts in the report:

  • In 2019, the prevalence of past 30-day cannabis use was significantly higher among Hispanic (23.2%), American Indian/Alaskan Native (26.7%), Native Hawaiian/Pacific Islander (29.4%), and multiple races (24.8%) compared to white (19.4%) and Asian (9.7%) high school students.
  • In 2019, past 30-day cannabis use rates increased by grade level, with 12th graders (26.9%) twice as likely to report using cannabis than ninth graders (13.3%)
  • Among those who use cannabis, the percent of high school students reporting dabbing cannabis in the past 30 days increased significantly from 2017 (20.3%) to 2019 (52.0%). In contrast, the percent reporting smoking cannabis decreased significantly from 2017 (88.4%) to 2019 (77.9%).
  • High school students’ perception of cannabis posing a moderate/great risk if used regularly decreased from 2011 (57.6%) to 2019 (50.1%)
  • High school students’ perception of easy access to cannabis decreased: 57.2% of students reported that it would be sort of/very easy to get cannabis in 2011, while 51.4% of students reported it would be sort of/very easy to get cannabis in 2019. 

Traffic Safety

The scope of driving under the influence of cannabis is difficult to gauge for several reasons, according to the report:

  1. There is no criminal charge that specifies that the driver is impaired by drugs instead of, or in combination with, alcohol. The current statute applies to driving under the influence of alcohol, drugs or a combination of the two.
  2. There is no central repository of toxicology results that would allow for an analysis of trends.
  3. At a traffic stop, law enforcement may choose not to pursue additional toxicology testing if the driver is exhibiting indications of impairment from alcohol. The additional time and cost required for further toxicology testing may not be considered worthwhile if the burden of proof for impairment is already being met by a blood-alcohol content (BAC) level.
  4. After an arrest, if the officer has probable cause to believe the suspect is impaired by drugs and/or alcohol, the officer may transfer the suspect to a location where blood can be drawn for further toxicology screening. The delta-9 tetrahydrocannabinol (THC) level in blood decreases rapidly in the first hour after use, then gradually thereafter, making prompt testing critical.
  5. Furthermore, high THC blood concentration does not perfectly correspond to impairment. Chronic cannabis users had measurable concentrations of delta-9 during a seven-day abstinence period. The highest level observed at the conclusion of the seven days was 3.0 nanograms per milliliter (the “permissible inference” driving limit is 5.0 ng/mL), as a result of THC being stored in fat and its ability to slowly release from the tissue. This becomes a problem for frequent and medicinal users who may continuously have THC detectable in their blood without noticeable impairing effects.

Also making it difficult to gauge the impact of cannabis legalization on traffic safety is “the increase in law enforcement officers who are trained in recognizing drug use—from 129 officers in 2012 to 221 in 2020—which can increase drug detection rates apart from any changes in driver behavior,” the report stated.

Going back to Minnesota Rep. Gruenhagen’s claim about Colorado experiencing increased traffic deaths among drivers who tested positive for THC since legalization, here is what the report found: the number of fatalities for drivers who tested positive for cannabinoids, or cannabinoids in combination of alcohol and/or other drugs, increased by 140%, from 55 in 2013 to 132 in 2019.

However, the report noted that the detection of any cannabinoid in one’s blood is not an indicator of impairment, but only indicates presence in one’s system. In Colorado traffic fatalities where at least one driver was drug tested, the percentage of those testing above the 5.0 ng/mL permissible inference level remained statistically unchanged from 2016 (14%) to 2019 (13%).

In a broader study of impaired drivers, the number of cases where drivers were screened for cannabinoids increased from 3,946 in 2016 to 5,032 in 2018; however, the percentage of those drivers testing positive for cannabinoids decreased from 73.1% to 66.3%. Those who tested at or above the 5.0 ng/mL limit rose slightly, from 47.5% to 49.6%, while the median level decreased from 5.9 ng/mL to 5.2 ng/mL from 2016 to 2018.

“The lack of comparable federal data across many metrics makes it difficult to compare changes in Colorado to other jurisdictions which may have not legalized marijuana,” the report stated. “In sum, then, the lack of pre-commercialization data, the decreasing social stigma, and challenges to law enforcement combine to make it difficult to translate these preliminary findings into definitive statements of outcomes.”

Public Safety

The total number of cannabis arrests have plummeted since legalization, dropping 68% from 2012 (13,225) to 2019 (4,290). Possession arrests, which make up the majority of all cannabis arrests, decreased by 71%, while sales arrests decreased by 56% and production arrests increased by 3%.

The overall steep decline included all races and ethnicities, but not at equal rates: cannabis arrests decreased by 72% among white individuals, 55% for Hispanics and 63% for Black Coloradans.

Moreover, the cannabis arrest rate for Blacks (160 per 100,000) was more than double that of white individuals (76 per 100,000) in 2019. “This disparity has not changed in any meaningful way since legalization,” the report stated.

Meanwhile, court filings related to cannabis declined 55% between 2012 (9,925) and 2019 (4,489). Filings fell by 67% for adults 21 or older.

And the number of cannabis plants seized on public lands—one indicator of an illicit market—has fluctuated significantly, from 46,662 seized plants in 2012, to a high of 80,826 plants in 2017, and down to a low of 1,502 plants in 2018.

General Health

The number of adults reporting cannabis use in the past 30 days increased significantly from 2014 (13.4%) to 2019 (19%), according to the report.

Following are some of the highlighted statistics regarding adult use:

  • Males have significantly higher past 30-day use (22.9%) than females (15.1%).
  • Adults 26-34 years old reported the highest past 30-day usage rates (29.4%), followed by 18-25-year-olds (28.8%), 35-64-year-olds (17.3%) and those 65 years and older (9.3%).
  • The cannabis usage rates of those 65 and older has more than tripled since 2014.
  • Those reporting smoking cannabis flower decreased from 87.2% of users in 2016 to 76.1% in 2019. This compares to increases in eating/drinking (35.2% in 2016 to 43% in 2019), vaping (22.9% in 2016 to 32% in 2019), and dabbing (16.8% in 2016 to 19.6% in 2019).

The number of calls to poison control centers mentioning human cannabis exposure increased over the past decade—from 41 calls in 2006 to 276 calls in 2019.

The overall rate of treatment admissions for those reporting cannabis as their primary substance of use decreased from 222 admissions per 100,000 population in 2012 to 182 admissions per 100,000 in 2019.

For youth aged 10 to 17 years old who were admitted for treatment for substance use in 2019, 73.5% reported cannabis as their primary substance of use. That rate has increased fairly steadily from 61.6% in 2008.

Filed Under: Cannabis News

Illinois Awards 55 Cannabis Retail Licenses in First of Three Licensing Lotteries

July 30, 2021 by CBD OIL

As a guinea pig for adult-use cannabis legalization, Colorado is often a target for prohibitionists trying to magnify what they consider shortcomings of the first state-legal market.

Two key arguments repeated by lawmakers voting against reform efforts include their concerns about how legalization might impact youth as well as the possible increase of impaired drivers on their state roadways.

In Minnesota, where House members discussed an adult-use bill for roughly five hours in May, before it passed via a 72-61 vote, Republican Rep. Glenn Gruenhagen took aim at Colorado in his efforts to deter passage of House File 600. While H.F. 600 did clear the House, it did not make its way through the Senate.

“Since recreational marijuana was legalized [in Colorado], traffic deaths in drivers which tested positive for marijuana increased 135 percent while all other traffic deaths increased 24 percent,” he said. “So, one of the members said, ‘This doesn’t cause death.’ Well, it does with increased traffic death.”

Gruenhagen went on and said, “One other finding is that marijuana use ages 12 and older increased 30% and is 76% higher than the national average, currently ranking third in the nation in Colorado.”

Lawmakers who oppose adult-use legalization in other states that have debated or passed bills this year have echoed similar reservations before casting their no votes.

While the representative from Minnesota declared to have non-partisan studies on his side, his claims have since been debunked (youth impacts) or gone unsubstantiated (traffic safety) by Colorado’s most recent biennial “Impacts of Marijuana Legalization” report, which was released this July and commissioned by the state’s Division of Criminal Justice.

After Colorado voters passed a ballot measure to fully legalize cannabis in the 2012 general election, possession and cultivation became legal on Dec. 10, 2012, when Gov. John Hickenlooper issued an executive action adding Amendment 64 to the state constitution. The commercial sale of cannabis to the general public under an established licensing system did not begin until Jan. 1, 2014. 

Before adult-use legalization, Coloradans legalized medical cannabis through a 2000 ballot measure. Data going back to 2005 is included in the commissioned report on the impacts of legalization, which was mandated by the Colorado General Assembly in 2013. 

The executive summary of this year’s report states: “The majority of the data sources vary considerably in terms of what exists historically, and the reliability of some sources has improved over time. Consequently, it is difficult to draw conclusions about the potential effects of marijuana legalization and commercialization on public safety, public health, or youth outcomes, and this may always be the case due to the lack of historical data.

“Furthermore, the measurement of available data elements can be affected by [the] very context of marijuana legalization. For example, the decreasing social stigma regarding marijuana use could lead individuals to be more likely to report use on surveys and also to health workers in emergency departments and poison control centers, making marijuana use appear to increase when perhaps it has not.”

Impact on Youth

According to the most recent report, the proportion of Colorado high school students reporting using cannabis ever in their lifetime remained statistically stagnant from 36.9% in 2013 to 35.9% in 2019. In addition, Colorado’s 2019 rate of 35.9% was slightly lower than the national rate of 36.8% of high school students reporting using cannabis ever in their lifetime.

For high school students who reported using cannabis in the past 30 days, Colorado’s 20.6% rate was slightly lower than the nation’s 21.7% rate in 2019. Neither the Colorado rate of use nor the national rate experienced significant changes from 2013 to 2019, according to the report.

“There was no statistically significant difference between Colorado student responses compared to national data,” the report stated. “The percentage of high school students reporting past 30-day use also remained stable, with no significant changes between 2005 and 2019.”

The data was gathered through the Healthy Kids Colorado Survey, which the Colorado Department of Public Health and Environment began administering to high school students in 2005, and to middle school students in 2013. The sample information included 46,537 high school students and 6,983 middle school students in 2019.

Meanwhile, the National Survey on Drug Use and Health is administered annually to those aged 12 and older by the federal Substance Abuse and Mental Health Services Administration, which the Colorado report uses to derive its comparisons.  

“The proportion of students trying marijuana before the age of 13 went down significantly in Colorado, from 9.2% in 2015 to 6.7% in 2019,” the Colorado report stated. “These findings were not statistically different from the national data.”

The report added that the trend of past 30-day cannabis use among high schoolers and middle schoolers showed “no significant changes occurred within any grade level [from sixth through 12th grade] between 2013 and 2019.”

Following are other highlights regarding youth impacts in the report:

  • In 2019, the prevalence of past 30-day cannabis use was significantly higher among Hispanic (23.2%), American Indian/Alaskan Native (26.7%), Native Hawaiian/Pacific Islander (29.4%), and multiple races (24.8%) compared to white (19.4%) and Asian (9.7%) high school students.
  • In 2019, past 30-day cannabis use rates increased by grade level, with 12th graders (26.9%) twice as likely to report using cannabis than ninth graders (13.3%)
  • Among those who use cannabis, the percent of high school students reporting dabbing cannabis in the past 30 days increased significantly from 2017 (20.3%) to 2019 (52.0%). In contrast, the percent reporting smoking cannabis decreased significantly from 2017 (88.4%) to 2019 (77.9%).
  • High school students’ perception of cannabis posing a moderate/great risk if used regularly decreased from 2011 (57.6%) to 2019 (50.1%)
  • High school students’ perception of easy access to cannabis decreased: 57.2% of students reported that it would be sort of/very easy to get cannabis in 2011, while 51.4% of students reported it would be sort of/very easy to get cannabis in 2019. 

Traffic Safety

The scope of driving under the influence of cannabis is difficult to gauge for several reasons, according to the report:

  1. There is no criminal charge that specifies that the driver is impaired by drugs instead of, or in combination with, alcohol. The current statute applies to driving under the influence of alcohol, drugs or a combination of the two.
  2. There is no central repository of toxicology results that would allow for an analysis of trends.
  3. At a traffic stop, law enforcement may choose not to pursue additional toxicology testing if the driver is exhibiting indications of impairment from alcohol. The additional time and cost required for further toxicology testing may not be considered worthwhile if the burden of proof for impairment is already being met by a blood-alcohol content (BAC) level.
  4. After an arrest, if the officer has probable cause to believe the suspect is impaired by drugs and/or alcohol, the officer may transfer the suspect to a location where blood can be drawn for further toxicology screening. The delta-9 tetrahydrocannabinol (THC) level in blood decreases rapidly in the first hour after use, then gradually thereafter, making prompt testing critical.
  5. Furthermore, high THC blood concentration does not perfectly correspond to impairment. Chronic cannabis users had measurable concentrations of delta-9 during a seven-day abstinence period. The highest level observed at the conclusion of the seven days was 3.0 nanograms per milliliter (the “permissible inference” driving limit is 5.0 ng/mL), as a result of THC being stored in fat and its ability to slowly release from the tissue. This becomes a problem for frequent and medicinal users who may continuously have THC detectable in their blood without noticeable impairing effects.

Also making it difficult to gauge the impact of cannabis legalization on traffic safety is “the increase in law enforcement officers who are trained in recognizing drug use—from 129 officers in 2012 to 221 in 2020—which can increase drug detection rates apart from any changes in driver behavior,” the report stated.

Going back to Minnesota Rep. Gruenhagen’s claim about Colorado experiencing increased traffic deaths among drivers who tested positive for THC since legalization, here is what the report found: the number of fatalities for drivers who tested positive for cannabinoids, or cannabinoids in combination of alcohol and/or other drugs, increased by 140%, from 55 in 2013 to 132 in 2019.

However, the report noted that the detection of any cannabinoid in one’s blood is not an indicator of impairment, but only indicates presence in one’s system. In Colorado traffic fatalities where at least one driver was drug tested, the percentage of those testing above the 5.0 ng/mL permissible inference level remained statistically unchanged from 2016 (14%) to 2019 (13%).

In a broader study of impaired drivers, the number of cases where drivers were screened for cannabinoids increased from 3,946 in 2016 to 5,032 in 2018; however, the percentage of those drivers testing positive for cannabinoids decreased from 73.1% to 66.3%. Those who tested at or above the 5.0 ng/mL limit rose slightly, from 47.5% to 49.6%, while the median level decreased from 5.9 ng/mL to 5.2 ng/mL from 2016 to 2018.

“The lack of comparable federal data across many metrics makes it difficult to compare changes in Colorado to other jurisdictions which may have not legalized marijuana,” the report stated. “In sum, then, the lack of pre-commercialization data, the decreasing social stigma, and challenges to law enforcement combine to make it difficult to translate these preliminary findings into definitive statements of outcomes.”

Public Safety

The total number of cannabis arrests have plummeted since legalization, dropping 68% from 2012 (13,225) to 2019 (4,290). Possession arrests, which make up the majority of all cannabis arrests, decreased by 71%, while sales arrests decreased by 56% and production arrests increased by 3%.

The overall steep decline included all races and ethnicities, but not at equal rates: cannabis arrests decreased by 72% among white individuals, 55% for Hispanics and 63% for Black Coloradans.

Moreover, the cannabis arrest rate for Blacks (160 per 100,000) was more than double that of white individuals (76 per 100,000) in 2019. “This disparity has not changed in any meaningful way since legalization,” the report stated.

Meanwhile, court filings related to cannabis declined 55% between 2012 (9,925) and 2019 (4,489). Filings fell by 67% for adults 21 or older.

And the number of cannabis plants seized on public lands—one indicator of an illicit market—has fluctuated significantly, from 46,662 seized plants in 2012, to a high of 80,826 plants in 2017, and down to a low of 1,502 plants in 2018.

General Health

The number of adults reporting cannabis use in the past 30 days increased significantly from 2014 (13.4%) to 2019 (19%), according to the report.

Following are some of the highlighted statistics regarding adult use:

  • Males have significantly higher past 30-day use (22.9%) than females (15.1%).
  • Adults 26-34 years old reported the highest past 30-day usage rates (29.4%), followed by 18-25-year-olds (28.8%), 35-64-year-olds (17.3%) and those 65 years and older (9.3%).
  • The cannabis usage rates of those 65 and older has more than tripled since 2014.
  • Those reporting smoking cannabis flower decreased from 87.2% of users in 2016 to 76.1% in 2019. This compares to increases in eating/drinking (35.2% in 2016 to 43% in 2019), vaping (22.9% in 2016 to 32% in 2019), and dabbing (16.8% in 2016 to 19.6% in 2019).

The number of calls to poison control centers mentioning human cannabis exposure increased over the past decade—from 41 calls in 2006 to 276 calls in 2019.

The overall rate of treatment admissions for those reporting cannabis as their primary substance of use decreased from 222 admissions per 100,000 population in 2012 to 182 admissions per 100,000 in 2019.

For youth aged 10 to 17 years old who were admitted for treatment for substance use in 2019, 73.5% reported cannabis as their primary substance of use. That rate has increased fairly steadily from 61.6% in 2008.

Filed Under: Cannabis News

Impacts of Cannabis Legalization in Colorado Highlighted in State’s Biennial Report

July 30, 2021 by CBD OIL

As a guinea pig for adult-use cannabis legalization, Colorado is often a target for prohibitionists trying to magnify what they consider shortcomings of the first state-legal market.

Two key arguments repeated by lawmakers voting against reform efforts include their concerns about how legalization might impact youth as well as the possible increase of impaired drivers on their state roadways.

In Minnesota, where House members discussed an adult-use bill for roughly five hours in May, before it passed via a 72-61 vote, Republican Rep. Glenn Gruenhagen took aim at Colorado in his efforts to deter passage of House File 600. While H.F. 600 did clear the House, it did not make its way through the Senate.

“Since recreational marijuana was legalized [in Colorado], traffic deaths in drivers which tested positive for marijuana increased 135 percent while all other traffic deaths increased 24 percent,” he said. “So, one of the members said, ‘This doesn’t cause death.’ Well, it does with increased traffic death.”

Gruenhagen went on and said, “One other finding is that marijuana use ages 12 and older increased 30% and is 76% higher than the national average, currently ranking third in the nation in Colorado.”

Lawmakers who oppose adult-use legalization in other states that have debated or passed bills this year have echoed similar reservations before casting their no votes.

While the representative from Minnesota declared to have non-partisan studies on his side, his claims have since been debunked (youth impacts) or gone unsubstantiated (traffic safety) by Colorado’s most recent biennial “Impacts of Marijuana Legalization” report, which was released this July and commissioned by the state’s Division of Criminal Justice.

After Colorado voters passed a ballot measure to fully legalize cannabis in the 2012 general election, possession and cultivation became legal on Dec. 10, 2012, when Gov. John Hickenlooper issued an executive action adding Amendment 64 to the state constitution. The commercial sale of cannabis to the general public under an established licensing system did not begin until Jan. 1, 2014. 

Before adult-use legalization, Coloradans legalized medical cannabis through a 2000 ballot measure. Data going back to 2005 is included in the commissioned report on the impacts of legalization, which was mandated by the Colorado General Assembly in 2013. 

The executive summary of this year’s report states: “The majority of the data sources vary considerably in terms of what exists historically, and the reliability of some sources has improved over time. Consequently, it is difficult to draw conclusions about the potential effects of marijuana legalization and commercialization on public safety, public health, or youth outcomes, and this may always be the case due to the lack of historical data.

“Furthermore, the measurement of available data elements can be affected by [the] very context of marijuana legalization. For example, the decreasing social stigma regarding marijuana use could lead individuals to be more likely to report use on surveys and also to health workers in emergency departments and poison control centers, making marijuana use appear to increase when perhaps it has not.”

Impact on Youth

According to the most recent report, the proportion of Colorado high school students reporting using cannabis ever in their lifetime remained statistically stagnant from 36.9% in 2013 to 35.9% in 2019. In addition, Colorado’s 2019 rate of 35.9% was slightly lower than the national rate of 36.8% of high school students reporting using cannabis ever in their lifetime.

For high school students who reported using cannabis in the past 30 days, Colorado’s 20.6% rate was slightly lower than the nation’s 21.7% rate in 2019. Neither the Colorado rate of use nor the national rate experienced significant changes from 2013 to 2019, according to the report.

“There was no statistically significant difference between Colorado student responses compared to national data,” the report stated. “The percentage of high school students reporting past 30-day use also remained stable, with no significant changes between 2005 and 2019.”

The data was gathered through the Healthy Kids Colorado Survey, which the Colorado Department of Public Health and Environment began administering to high school students in 2005, and to middle school students in 2013. The sample information included 46,537 high school students and 6,983 middle school students in 2019.

Meanwhile, the National Survey on Drug Use and Health is administered annually to those aged 12 and older by the federal Substance Abuse and Mental Health Services Administration, which the Colorado report uses to derive its comparisons.  

“The proportion of students trying marijuana before the age of 13 went down significantly in Colorado, from 9.2% in 2015 to 6.7% in 2019,” the Colorado report stated. “These findings were not statistically different from the national data.”

The report added that the trend of past 30-day cannabis use among high schoolers and middle schoolers showed “no significant changes occurred within any grade level [from sixth through 12th grade] between 2013 and 2019.”

Following are other highlights regarding youth impacts in the report:

  • In 2019, the prevalence of past 30-day cannabis use was significantly higher among Hispanic (23.2%), American Indian/Alaskan Native (26.7%), Native Hawaiian/Pacific Islander (29.4%), and multiple races (24.8%) compared to white (19.4%) and Asian (9.7%) high school students.
  • In 2019, past 30-day cannabis use rates increased by grade level, with 12th graders (26.9%) twice as likely to report using cannabis than ninth graders (13.3%)
  • Among those who use cannabis, the percent of high school students reporting dabbing cannabis in the past 30 days increased significantly from 2017 (20.3%) to 2019 (52.0%). In contrast, the percent reporting smoking cannabis decreased significantly from 2017 (88.4%) to 2019 (77.9%).
  • High school students’ perception of cannabis posing a moderate/great risk if used regularly decreased from 2011 (57.6%) to 2019 (50.1%)
  • High school students’ perception of easy access to cannabis decreased: 57.2% of students reported that it would be sort of/very easy to get cannabis in 2011, while 51.4% of students reported it would be sort of/very easy to get cannabis in 2019. 

Traffic Safety

The scope of driving under the influence of cannabis is difficult to gauge for several reasons, according to the report:

  1. There is no criminal charge that specifies that the driver is impaired by drugs instead of, or in combination with, alcohol. The current statute applies to driving under the influence of alcohol, drugs or a combination of the two.
  2. There is no central repository of toxicology results that would allow for an analysis of trends.
  3. At a traffic stop, law enforcement may choose not to pursue additional toxicology testing if the driver is exhibiting indications of impairment from alcohol. The additional time and cost required for further toxicology testing may not be considered worthwhile if the burden of proof for impairment is already being met by a blood-alcohol content (BAC) level.
  4. After an arrest, if the officer has probable cause to believe the suspect is impaired by drugs and/or alcohol, the officer may transfer the suspect to a location where blood can be drawn for further toxicology screening. The delta-9 tetrahydrocannabinol (THC) level in blood decreases rapidly in the first hour after use, then gradually thereafter, making prompt testing critical.
  5. Furthermore, high THC blood concentration does not perfectly correspond to impairment. Chronic cannabis users had measurable concentrations of delta-9 during a seven-day abstinence period. The highest level observed at the conclusion of the seven days was 3.0 nanograms per milliliter (the “permissible inference” driving limit is 5.0 ng/mL), as a result of THC being stored in fat and its ability to slowly release from the tissue. This becomes a problem for frequent and medicinal users who may continuously have THC detectable in their blood without noticeable impairing effects.

Also making it difficult to gauge the impact of cannabis legalization on traffic safety is “the increase in law enforcement officers who are trained in recognizing drug use—from 129 officers in 2012 to 221 in 2020—which can increase drug detection rates apart from any changes in driver behavior,” the report stated.

Going back to Minnesota Rep. Gruenhagen’s claim about Colorado experiencing increased traffic deaths among drivers who tested positive for THC since legalization, here is what the report found: the number of fatalities for drivers who tested positive for cannabinoids, or cannabinoids in combination of alcohol and/or other drugs, increased by 140%, from 55 in 2013 to 132 in 2019.

However, the report noted that the detection of any cannabinoid in one’s blood is not an indicator of impairment, but only indicates presence in one’s system. In Colorado traffic fatalities where at least one driver was drug tested, the percentage of those testing above the 5.0 ng/mL permissible inference level remained statistically unchanged from 2016 (14%) to 2019 (13%).

In a broader study of impaired drivers, the number of cases where drivers were screened for cannabinoids increased from 3,946 in 2016 to 5,032 in 2018; however, the percentage of those drivers testing positive for cannabinoids decreased from 73.1% to 66.3%. Those who tested at or above the 5.0 ng/mL limit rose slightly, from 47.5% to 49.6%, while the median level decreased from 5.9 ng/mL to 5.2 ng/mL from 2016 to 2018.

“The lack of comparable federal data across many metrics makes it difficult to compare changes in Colorado to other jurisdictions which may have not legalized marijuana,” the report stated. “In sum, then, the lack of pre-commercialization data, the decreasing social stigma, and challenges to law enforcement combine to make it difficult to translate these preliminary findings into definitive statements of outcomes.”

Public Safety

The total number of cannabis arrests have plummeted since legalization, dropping 68% from 2012 (13,225) to 2019 (4,290). Possession arrests, which make up the majority of all cannabis arrests, decreased by 71%, while sales arrests decreased by 56% and production arrests increased by 3%.

The overall steep decline included all races and ethnicities, but not at equal rates: cannabis arrests decreased by 72% among white individuals, 55% for Hispanics and 63% for Black Coloradans.

Moreover, the cannabis arrest rate for Blacks (160 per 100,000) was more than double that of white individuals (76 per 100,000) in 2019. “This disparity has not changed in any meaningful way since legalization,” the report stated.

Meanwhile, court filings related to cannabis declined 55% between 2012 (9,925) and 2019 (4,489). Filings fell by 67% for adults 21 or older.

And the number of cannabis plants seized on public lands—one indicator of an illicit market—has fluctuated significantly, from 46,662 seized plants in 2012, to a high of 80,826 plants in 2017, and down to a low of 1,502 plants in 2018.

General Health

The number of adults reporting cannabis use in the past 30 days increased significantly from 2014 (13.4%) to 2019 (19%), according to the report.

Following are some of the highlighted statistics regarding adult use:

  • Males have significantly higher past 30-day use (22.9%) than females (15.1%).
  • Adults 26-34 years old reported the highest past 30-day usage rates (29.4%), followed by 18-25-year-olds (28.8%), 35-64-year-olds (17.3%) and those 65 years and older (9.3%).
  • The cannabis usage rates of those 65 and older has more than tripled since 2014.
  • Those reporting smoking cannabis flower decreased from 87.2% of users in 2016 to 76.1% in 2019. This compares to increases in eating/drinking (35.2% in 2016 to 43% in 2019), vaping (22.9% in 2016 to 32% in 2019), and dabbing (16.8% in 2016 to 19.6% in 2019).

The number of calls to poison control centers mentioning human cannabis exposure increased over the past decade—from 41 calls in 2006 to 276 calls in 2019.

The overall rate of treatment admissions for those reporting cannabis as their primary substance of use decreased from 222 admissions per 100,000 population in 2012 to 182 admissions per 100,000 in 2019.

For youth aged 10 to 17 years old who were admitted for treatment for substance use in 2019, 73.5% reported cannabis as their primary substance of use. That rate has increased fairly steadily from 61.6% in 2008.

Filed Under: Cannabis News

Cannabis Business Law Firm Bianchi & Brandt Adds Social Media Coordinator to Growing Team

July 29, 2021 by CBD OIL

In a long-awaited announcement, Colombia authorized exports of dried cannabis flower for medical purposes. For businesses in the country, it’s a move that increases the growth potential of the nascent cannabis industry.

Colombia had approved a regulatory framework in July 2016 governing the production, distribution, sale and export of seeds—as well as products like creams and other derivatives based on cannabis—but had prohibited the export of dried cannabis flower, fearing that such a move would allow diversion of legal cannabis products into the illicit marketplace.

The new decree, 811, issued July 23, modifies an earlier law that regulated the commercialization of medical cannabis, Justice Minister Wilson Ruiz said.

The new decree also allows manufacturers to produce goods such as oils, extracts,  textiles or food containing “non-psychoactive cannabis”—so long as they are limited to biomass containing less than 1% of THC. (Colombia does not make distinctions between “cannabis” and “hemp,” as in other countries, but rather uses the “psychoactive” nomenclature at the 1% THC content threshold.).

Colombia President Ivan Duque signed a decree ending “the ban on the export of dried flower” in an event organized at a facility owned by Clever Leaves, one of the 18 multinationals that grows medicinal cannabis in Colombia.

“Colombia starts to play big, and with this decree we are putting ourselves at the forefront in terms of regulatory competitiveness, at least in Latin America and the Caribbean,” he said, noting that the country is no longer only working in a pharmaceutical market. “We are opening the space to do much more in cosmetics … [including] food and beverages and even textiles,” the president said.

Duque’s office estimates that the global market for medicinal and industrial cannabis may be worth US$62 billion by 2024. National and international companies have invested US$250mn in Colombia to develop this industry.

Colombia, one of the world’s largest cannabis producers in the 1960s and 1970s, and the world’s biggest supplier of cocaine, continues to change the country’s drug policy.

With the regulation followed by a new resolution that will regulate how the dried flower should be produced, Colombia joined other counties in the region that have authorized exports of dried flower, said Jon Ruiz, director of the consultancy firm CannCons and former CEO of the cannabis companies Pharmacielo and Medcann. Notably, Colombia will have a competitive advantage against Ecuador, a neighboring nation with similar geographic conditions, which only authorized exports of non-psychoactive dried flower, he said 

The resolution is expected to be ready in two months, Ruiz said. The Ministry of Justice will continue to be responsible for issuing licenses for seeds for the cultivation of cannabis plants. Meanwhile, the National Food and Drug Surveillance Institute (INVIMA) will issue the licenses for derivatives.

Until recently, dried flower produced in Colombia was only allowed to go into the Free Trade Zone for transformation for derived products such as cannabis extracts or oils.

Advantages

The biggest competitive advantage to produce and export dried flower is pure production cost, analysts said.

According to Ruiz, one gram of cannabis flower in Colombia cost less than  $0.50 to produce, while in Canada the cost tends to be more than over US$1.00.

Located close to the equatorial line, cannabis plantations can soak up sun 12 hours each day, year-round, compared with Europe or North America where farmers in many areas will build out greenhouses or indoor facilities to guarantee production throughout the year.

Investors have also factored the costs of growing cannabis in Colombia compared with counterparts as they can find skilled cheap labor force with experience in the flower industry and inexpensive land.

Exports Set to Skyrocket

Colombian think tank Fedesarrollo sees export revenue from the cannabis industry bringing US$800 million by 2025 and hitting an average of $2.3 billion in a decade hence. Colombia exported $5 million in cannabis byproducts in 2020 and $8 million in the period from January to June 2021, according to Rodrigo Arcila, president of the Colombian Cannabis Association (Asocolcanna).

“The growth potential is enormous. I cannot provide an exact figure, but companies were awaiting this announcement to prepare their crops and organize their business plans,” Arcila told CBT.

Executives from Clever Leaves, a cultivator, manufacturer and distributor listed on the Nasdaq, said exports of dried flower represent more than 50% of the world market for medicinal cannabis and participating in this segment will increase the country’s exports.

Julian Wilches, co-founder and director of Clever Leaves’ public affairs, said Colombia was one of Latin America’s pioneers of regulating production and exports of derivatives, but the export of flower will allow the expansion of the portfolio of products and services—generating greater opportunities and better prospects for the integral development of the industry.

READ MORE: Northern Swan Fully Integrates Colombia’s Clever Leaves

“The countries of the region have been updating their regulations, such as Peru, Ecuador, Mexico and Brazil, precisely to gain competitiveness. Colombia’s response was to be at the forefront and we are ready to serve this new segments,” Wilches said.

In Germany’s retail market, dried flower represents 53% of sales. It’s a country that represents 75% of the European market for medicinal cannabis and which currently depends entirely on imports. Likewise, the share of dried flower in Canada represents 73% of the units sold, while in the U.S. it is estimated to be above 60% of total sales, according to the team at Clever Leaves, citing a study published by Health Canada.

The company—with 18 hectares fully in production in the central province of Boyacá and a sophisticated laboratory in Tocancipá, located north of Bogotá—has invested US$70 million since 2018 in Colombia, and the market will tell how much they will have to invest more to expand into exports of flower, Wilches added.

Job Potential

Ruiz’s minister of justice said the administration of Duque is betting on this sector to reduce unemployment in Colombia, a nation hardly hit by the pandemic.  The Colombian economy contracted 6.8% in 2020, according to the national statistics agency. That is its worst year since records began tracking such metrics in 1905, and the record-breaking measurements have left the country wracked by soaring debt and mass unemployment.

The cannabis sector generates 17.3 jobs per hectare and could create 7,772 formal agricultural jobs by 2025 and 26,968 by 2030, Fedesarrollo said.

“The decree strengthens a strategic sector to have economic growth and job creation,” Ruiz said.

Colombia had 120 hectares dedicated to grow medicinal cannabis, and the expansion potential is large as 450 hectares by 2025 and as much as 1,558 hectares in 2030, Fedesarrollo added.

The decree also strengthens measures for monitoring and control of the licenses issued, so that the authorities have clarity regarding the start of activities. Companies obtaining licenses to grow non-psychoactive hemp will secure licenses for 10 years with the potential to renovate them.

 

Filed Under: Cannabis News

Leaders in Cannabis Testing – Part 1: A Q&A with Milan Patel, CEO and Co-Founder of PathogenDx

July 29, 2021 by CBD OIL

In this “Leaders in Cannabis Testing” series of articles, Green interviews cannabis testing laboratories and technology providers that are bringing unique perspectives to the industry. Particular attention is focused on how these businesses integrate innovative practices and technologies to navigate a rapidly changing landscape of regulatory constraints and B2B demand.

PathogenDx is an Arizona-based provider of microbial testing technologies. Since their inception in 2014, they have broadened their reach to 26 states in the US. In addition to cannabis product testing, PathogenDx also provides technologies for food safety testing, environmental testing and recently started offering human diagnostics testing to support COVID-19 response efforts.

We interviewed Milan Patel, CEO and co-founder of PathogenDx. Milan founded PathogenDx as a spin-off from one of his investments in a clinical diagnostics company testing for genetic markers in transplant organs. Prior to PathogenDx, Milan worked in finance and marketing at Intel and later served as CFO at Acentia (now Maximus Federal).

Aaron Green: What’s the history of PathogenDx?

Milan Patel: PathogenDx was effectively a spin-off of a clinical diagnostics company that my partner Dr. Mike Hogan, the inventor of the technology, had founded when he was a professor at the University of Arizona, but previously at Baylor Medical College back in 2002. I had invested in the company back then and I had realized that his technology had a broad and wide sweeping impact for testing – not just for pathogens in cannabis specifically, but also for pathogens in food, agriculture, water and even human diagnostics. In the last 14 months, this became very personal for every single person on the planet having been impacted by SARS-CoV-2, the viral pathogen causing Covid-19. The genesis of the company was just this, that human health, food and agricultural supply, and the environment has and will continue to be targeted by bacterial, fungal and viral pathogens impacting the safety and health of each human on the planet.

We founded PathogenDx and we pivoted the company from its original human organ transplant genetics market scope into the bigger markets; we felt the original focus was too niche for a technology with this much potential. We licensed the technology, and we repurposed it into primarily cannabis. We felt that achieving commercial success and use in the hands of cannabis testing labs at the state level where cannabis was first regulated was the most logical next step. Ultimately, our goal was and is to move into markets that are approved at the federal regulatory side of the spectrum, and that is where we are now.

Green: What year was that?

Milan Patel, CEO and Co-Founder of PathogenDx
Photo credit: Michael Chansley

Patel: 2014.

Green: So, PathogenDx started in cannabis testing?

Patel: Yes, we started in cannabis testing. We now have over 100 labs that are using the technology. There is a specific need in cannabis when you’re looking at contamination or infection.

In the case of contamination on cannabis, you must look for bacterial and fungal organisms that make it unsafe, such as E. coli, or Salmonella or Aspergillus pathogens. We’re familiar with recent issues like the romaine lettuce foodborne illness outbreaks at Chipotle. In the case of fungal organisms such as Aspergillus, if you smoke or consume contaminated cannabis, it could have a huge impact on your health. Cannabis regulators realized that to ensure public health and safety there was more than just one pathogen – there were half a dozen of these bugs, at a minimum, that could be harmful to you.

The beauty of our technology, using a Microarray is that we can do what is called a multiplex test, which means you’re able to test for all bacterial and fungal pathogens in a single test, as opposed to the old “Adam Smith” model, which tests each pathogen on a one-by-one basis. The traditional approach is costly, time consuming and cumbersome. Cannabis is such a high value crop and producers need to get the answer quickly. Our tests can give a result in six hours on the same day, as opposed to the two or three days that it takes for these other approved methods on the market.

Green: What is your business model? Is there equipment in addition to consumables?

Patel: Our business model is the classic razor blade model. What that means is we sell equipment as well as the consumables – the testing kits themselves.

The PathogenDx technology uses standard, off-the-shelf lab equipment that you can find anywhere. We didn’t want to make the equipment proprietary so that a lab has to buy a specific OEM branded product. They can use almost any equipment that’s available commercially. We wanted to make sure that labs are only paying a fraction of the cost to get our equipment, as opposed to using other vendors. Secondly, the platform is open-ended, meaning it’s highly flexible to work with the volumes that different cannabis labs see daily, from high to low.

One equipment set can process many different types of testing kits. There are kits for regulated testing required by states, as well as required environmental contamination.

Green: Do you provide any in-house or reference lab testing?

Patel: We do. We have a CLIA lab for clinical testing. We did this about a year ago when we started doing COVID testing.

We don’t do any kind of in-house reference testing for cannabis, though we do use specific reference materials or standards from Emerald Scientific, for example, or from NCI. Our platform is all externally third-party reference lab tested whether it’s validated by our external cannabis lab customers or an independent lab. We want our customers to make sure that the actual test works in their own hands, in their own facility by their own people, as opposed to just shrugging our shoulders and saying, “hey, we’ve done it ourselves, believe us.” That’s the difference.

Green: Can you explain the difference between qPCR and endpoint PCR?

Patel: The difference between PathogenDx’s Microarray is it uses endpoint PCR versus qPCR (quantitative real time PCR). Effectively, our test doesn’t need to be enriched. Endpoint PCR delivers a higher level of accuracy, because when it goes to amplify that target DNA, whether it’s E. coli, Salmonella or Aspergillus pieces, it uses all the primer reagent to its endpoint. So, it amplifies every single piece of an E. Coli (for example) in that sample until the primer is fully consumed. In the case of qPCR, it basically reaches a threshold and then the reaction stops. That’s the difference which results in a much greater level of accuracy. This provides almost 10 times greater sensitivity to identify the pathogen in that sample.

The second thing is that we have separated out how the amplified sample hybridizes to the probe. In the case of our assay, we have a microarray with a well in it and we printed the actual probe that has the sequence of E. coli in there, now driving 100% specificity. Whereas in the qPCR, the reaction is not only amplifying, but it’s also basically working with the probe. So, in that way, we have a higher level of efficiency in terms of specificity. You get a definite answer exactly in terms of the organism you’re looking for.

In terms of an analogy, let’s take a zip code for example which has the extra four digits at the end of it.  In the case of endpoint PCR, we have nine digits. We have our primer probes which represent the standard five digits of a zip code, and the physical location of the probe itself in the well which serves as the extra four digits of that zip code. The analyte must match both primary and secondary parts of the nine-digit zip code for it to lock in, like a key and a lock. And that’s the way our technology works in a nutshell.

Endpoint PCR is completely different. It drives higher levels of accuracy and specificity while reducing the turnaround time compared to qPCR – down to six hours from sample to result. In qPCR, you must enrich the sample for 24 to 48 hours, depending on bacteria or fungus, and then amplification and PCR analysis can be done in one to three hours. The accuracies and the turnaround times are the major differences between the endpoint PCR and qPCR.

Green: If I understand correctly, it’s a printed microarray in the well plate?

Patel: That’s correct. It’s a 96-well plate, and in each well, you’ve now printed all the probes for all targets in a single well. So, you’re not running more than one well per target, or per organism like you are for qPCR. You’re running just one well for all organisms. With our well plates, you’re consuming fewer wells and our patented foil-cover, you only use the wells you need. The unused wells in the well plate can be used in future tests, saving on costs and labor.

Green: Do you have any other differentiating IP?

The PathogenDx Microarray

Patel: The multiplex is the core IP. The way we process the raw sample, whether it’s flower or non-flower, without the need for enrichment is another part of the core IP. We do triplicate probes in each well for E. Coli, triplicate probes for Salmonella, etc., so there are three probes per targeted organism in each of the wells. We’re triple checking that you’re definitively identifying that bug at the end of the day. This is the cornerstone of our technology.

We were just approved by the State of New York, and the New York Department of Health has 13 different organisms for testing on cannabis. Think about it: one of the most rigorous testing requirements at a state level – maybe even at a federal level – and we just got approved for that. If you had to do 13 organisms separately, whether it’s plate culture or qPCR, it would become super expensive and very difficult. It would break the very backs of every testing lab to do that. That’s where the multiplexing becomes tremendously valuable because what you’re doing is leveraging the ability to do everything as a single test and single reaction.

Green: You mentioned New York. What other geographies are you active in?

Patel: We’re active in 26 different states including the major cannabis players: Florida, Nevada, California, Arizona, Michigan, New York, Oklahoma, Colorado and Washington – and we’re also in Canada. We’re currently working to enter other markets, but it all comes down to navigating the regulatory process and getting approval.

We’re not active currently in other international markets yet. We’re currently going through the AOAC approval process for our technology and I’m happy to say that we’re close to getting that in the next couple of months. Beyond that, I think we’ll scale more internationally.

I am delighted to say that we also got FDA EUA federal level authorization of our technology which drives significant credibility and confidence for the use of the technology. About a year ago, we made a conscious choice to make this technology federally acceptable by going into the COVID testing market. We got the FDA EUA back on April 20, ironically. That vote of confidence by the FDA means that our technology is capable of human testing. That has helped to create some runway in terms of getting federalized with both the FDA and the USDA, and certification by AOAC for our different tests.

Green: Was that COVID-19 EUA for clinical diagnostics or surveillance?

Patel: It was for clinical diagnostics, so it’s an actual human diagnostic test.

Green: Last couple of questions here. Once you find something as a cannabis operator, whether its bacteria or fungus, what can you do?

Patel: There are many services that are tied into our ecosystem. For example, we work with Willow Industries, who does remediation.

There’s been a lot of criticism around DNA based technology. It doesn’t matter if it’s qPCR or endpoint PCR. They say, “well, you’re also including dead organisms, dead DNA.” We do have a component of separating live versus dead DNA with a biomechanical process, using an enzyme that we’ve created, and it’s available commercially. Labs can test for whether a pathogen is living or dead and, in many cases, when they find it, they can partner with remediation companies to help address the issue at the grower level.

Another product we offer is an EnviroX test, which is an environmental test of air and surfaces. These have 50 pathogens in a single well. Think about this: these are all the bad actors that typically grow where soil is – the human pathogens, plant pathogens, powdery mildew, Botrytis, Fusarium – these are very problematic for the thousands of growers out there. The idea is to help them with screening technology before samples are pulled off the canopy and go to a regulated lab. We can help the growers isolate where that contamination is in that facility, then the remediation companies can come in, and help them save their crop and avoid economic losses.

Green: What are you most interested in learning about?

Patel: I would prefer that the cannabis industry not go through the same mistakes other industries have gone through. Cannabis started as a cottage industry. It’s obviously doubled every year, and as it gets scaled, the big corporations come in. Sophistication, standards, maturity all help in legitimacy of a business and image of an industry. At the end of the day, we have an opportunity to learn from other industries to really leapfrog and not have to go through the same mistakes. That’s one of the things that’s important to me. I’m very passionate about it.

One thing that I’ll leave you with is this: we’re dealing with more bugs in cannabis than the food industry. The food industry is only dealing with two to four bugs and look at the number of recalls they are navigating – and this is a multi-billion-dollar industry. Cannabis is still a fraction of that and we’re dealing with more bugs. We want to look ahead and avoid these recalls. How do you avoid some of the challenges around antimicrobial resistance and antibiotic resistance? We don’t want to be going down that road if we can avoid it and that’s sort of a personal mission for myself and the company.

Cannabis itself is so powerful, both medicinally as well as recreationally, and it can be beneficial for both consumers and industry image if we do the right things, and avoid future disasters, like the vaping crisis we went through 18 months ago because of bad GMPs. We must learn from those industries. We’re trying to make it better for the right reasons and that’s what’s important to me.

Green: Okay, great. That concludes the interview. Thank you, Milan.

Patel: Thank you for allowing me to share my thoughts and your time, Aaron.

Filed Under: Cannabis News

Can Cannabis Avoid Alcohol’s 3-Tier Distribution System?

July 29, 2021 by CBD OIL

As an experiential marketer that works with a lot of vice-oriented brands, I’ve always been fascinated by the story of the rise of spirits in the US – a history marked by ingenuity in the face of heavy restrictions, clashing social norms, crime and political ideals. Since then, those same qualities have emerged in the story of cannabis and how, against all odds, it has recently begun to push its way into the mainstream. But on the path to legalization, cannabis can also learn a lot from the spirits industry about what not to do.

For example, when laws governing the spirits industry were written in the post-Prohibition 1930s, the federal government wanted to create an equitable landscape. So, they created a 3-tier system – manufacturers or importers must sell to wholesalers, wholesalers must then sell to retailers and retailers sell to us. They figured that keeping manufacturing interests separate from wholesale and retail interests would keep any large company from owning an entire supply chain, muscling out smaller competitors.

In theory, it’s not a bad idea. Imagine the consequences of massive companies like Diageo or AB InBev using their money to pay bars and liquor stores to only stock their brands and not competitors. Add on the Tied House Laws, which basically says an entity in one of the three categories cannot have an ownership stake in any of the others, and you get a seemingly even-handed marketplace.

Tied House Laws theoretically limit one entity from monopolizing a supply chain

In truth, it makes it almost impossible to be disruptive or for new brands to break through. Other industries have innovated by cutting out the middleman and selling direct-to-consumer – something that simply cannot happen in alcohol (minus the wineries and distilleries that can sell direct out of their tasting rooms). Also, now distributors are so consolidated that there are only one or two big distribution companies in each state. So, as a company trying to bring a new product to market, you have to get into one of these highly selective and competitive distributors if you are going to be successful – a challenging ask for a small, independent brand.

Protection racket

Now, imagine that same challenge coming to the cannabis space. With legalization around the corner, the adult use (as opposed to medical use) cannabis industry could easily look like alcohol in the rules that will be set up.

The demand for high quality cannabis continues to increase, but the prices need to level out to stave off the black market.

Right now, adult use manufacturers can sell their products to dispensaries directly. Some use a distributor, but there is no nationwide mandate to – which is probably for the best. If a distributor isn’t a requirement, it forces brands to offer something new to differentiate themselves. It will spark innovation, rather than add an extra profit margin that will get rolled into the final price – a price that is already higher than it should be due to the murky federal legal status. Adding complexity and cost will only make it harder to compete with the illicit market. For the industry to grow, costs for illicit cannabis can’t be lower than its legal counterpart.

Of course, we are in the nascent stages of legalization here and we’ve come a long way culturally and technologically since the 30s. But remember, the rules governing alcohol were written nearly 100 years ago along with the passage of the 21st amendment repealing prohibition. Startlingly, those laws haven’t changed that much since they were written, so any mistakes made now in dealing with the cannabis industry could last for a long time.

A new way forward

What the cannabis industry needs is a new model for the adult use/recreational space, keeping some of what exists in the alcohol industry but without ever mandating use of a distributor – the middle tier. This would mean keeping Tied House Laws in place and applying them to cannabis so that a manufacturer could never hold an interest in a retailer, while still allowing them to sell directly to dispensaries and to consumers. Currently, some states allow for vertical integration, which would change under Tied House Laws.

This should be pretty simple, since most states are already separating licenses by type of activity (manufacturer, retailer, etc.) and it would promote competition while bringing the widest array of products possible to each consumer. Also, it would prevent any behemoths from squeezing out the up and comers.

extraction equipment
Constant innovation is a hallmark of the cannabis market and a key factor in continuous growth.

Of course, some retail license allowances could be considered on a case-by-case basis. For example, I would carve out an exception that growers/manufacturers could sell direct to consumers through a single “tasting room” at their brand home. This is similar to the operations of microbreweries, distilleries and wineries. It would encourage education for consumers, and provide great opportunities for brands to show why their products are better or unique.

Given the technology and logistics solutions available to businesses in a 21st century economy, mandated distributors create a sometimes-unnecessary barrier to an already efficient supply chain. If mandated, prices will inflate to cover added margin, thus making it harder to bring consumers over from the legacy market to the legal one. I’m not against the idea of a distributor – they can add tremendous value, but the mandate would seriously curtail industry growth.

Direct-to-retail and direct-to-consumer sales are necessary for the economic health and growth of the industry. Without this, using alcohol as a cautionary tale, at some point the middle tier cannabis brands will inevitably begin to wield an outsized amount of power. We are living at a time where innovation is going to be the key to explosive growth in the cannabis industry, so it’s important to do everything possible to let the market find its way without falling into a century-old trap.

Filed Under: Cannabis News

4 Ways to Prepare for the Cannabis Licensing Process

July 29, 2021 by CBD OIL

In a long-awaited announcement, Colombia authorized exports of dried cannabis flower for medical purposes. For businesses in the country, it’s a move that increases the growth potential of the nascent cannabis industry.

Colombia had approved a regulatory framework in July 2016 governing the production, distribution, sale and export of seeds—as well as products like creams and other derivatives based on cannabis—but had prohibited the export of dried cannabis flower, fearing that such a move would allow diversion of legal cannabis products into the illicit marketplace.

The new decree, 811, issued July 23, modifies an earlier law that regulated the commercialization of medical cannabis, Justice Minister Wilson Ruiz said.

The new decree also allows manufacturers to produce goods such as oils, extracts,  textiles or food containing “non-psychoactive cannabis”—so long as they are limited to biomass containing less than 1% of THC. (Colombia does not make distinctions between “cannabis” and “hemp,” as in other countries, but rather uses the “psychoactive” nomenclature at the 1% THC content threshold.).

Colombia President Ivan Duque signed a decree ending “the ban on the export of dried flower” in an event organized at a facility owned by Clever Leaves, one of the 18 multinationals that grows medicinal cannabis in Colombia.

“Colombia starts to play big, and with this decree we are putting ourselves at the forefront in terms of regulatory competitiveness, at least in Latin America and the Caribbean,” he said, noting that the country is no longer only working in a pharmaceutical market. “We are opening the space to do much more in cosmetics … [including] food and beverages and even textiles,” the president said.

Duque’s office estimates that the global market for medicinal and industrial cannabis may be worth US$62 billion by 2024. National and international companies have invested US$250mn in Colombia to develop this industry.

Colombia, one of the world’s largest cannabis producers in the 1960s and 1970s, and the world’s biggest supplier of cocaine, continues to change the country’s drug policy.

With the regulation followed by a new resolution that will regulate how the dried flower should be produced, Colombia joined other counties in the region that have authorized exports of dried flower, said Jon Ruiz, director of the consultancy firm CannCons and former CEO of the cannabis companies Pharmacielo and Medcann. Notably, Colombia will have a competitive advantage against Ecuador, a neighboring nation with similar geographic conditions, which only authorized exports of non-psychoactive dried flower, he said 

The resolution is expected to be ready in two months, Ruiz said. The Ministry of Justice will continue to be responsible for issuing licenses for seeds for the cultivation of cannabis plants. Meanwhile, the National Food and Drug Surveillance Institute (INVIMA) will issue the licenses for derivatives.

Until recently, dried flower produced in Colombia was only allowed to go into the Free Trade Zone for transformation for derived products such as cannabis extracts or oils.

Advantages

The biggest competitive advantage to produce and export dried flower is pure production cost, analysts said.

According to Ruiz, one gram of cannabis flower in Colombia cost less than  $0.50 to produce, while in Canada the cost tends to be more than over US$1.00.

Located close to the equatorial line, cannabis plantations can soak up sun 12 hours each day, year-round, compared with Europe or North America where farmers in many areas will build out greenhouses or indoor facilities to guarantee production throughout the year.

Investors have also factored the costs of growing cannabis in Colombia compared with counterparts as they can find skilled cheap labor force with experience in the flower industry and inexpensive land.

Exports Set to Skyrocket

Colombian think tank Fedesarrollo sees export revenue from the cannabis industry bringing US$800 million by 2025 and hitting an average of $2.3 billion in a decade hence. Colombia exported $5 million in cannabis byproducts in 2020 and $8 million in the period from January to June 2021, according to Rodrigo Arcila, president of the Colombian Cannabis Association (Asocolcanna).

“The growth potential is enormous. I cannot provide an exact figure, but companies were awaiting this announcement to prepare their crops and organize their business plans,” Arcila told CBT.

Executives from Clever Leaves, a cultivator, manufacturer and distributor listed on the Nasdaq, said exports of dried flower represent more than 50% of the world market for medicinal cannabis and participating in this segment will increase the country’s exports.

Julian Wilches, co-founder and director of Clever Leaves’ public affairs, said Colombia was one of Latin America’s pioneers of regulating production and exports of derivatives, but the export of flower will allow the expansion of the portfolio of products and services—generating greater opportunities and better prospects for the integral development of the industry.

READ MORE: Northern Swan Fully Integrates Colombia’s Clever Leaves

“The countries of the region have been updating their regulations, such as Peru, Ecuador, Mexico and Brazil, precisely to gain competitiveness. Colombia’s response was to be at the forefront and we are ready to serve this new segments,” Wilches said.

In Germany’s retail market, dried flower represents 53% of sales. It’s a country that represents 75% of the European market for medicinal cannabis and which currently depends entirely on imports. Likewise, the share of dried flower in Canada represents 73% of the units sold, while in the U.S. it is estimated to be above 60% of total sales, according to the team at Clever Leaves, citing a study published by Health Canada.

The company—with 18 hectares fully in production in the central province of Boyacá and a sophisticated laboratory in Tocancipá, located north of Bogotá—has invested US$70 million since 2018 in Colombia, and the market will tell how much they will have to invest more to expand into exports of flower, Wilches added.

Job Potential

Ruiz’s minister of justice said the administration of Duque is betting on this sector to reduce unemployment in Colombia, a nation hardly hit by the pandemic.  The Colombian economy contracted 6.8% in 2020, according to the national statistics agency. That is its worst year since records began tracking such metrics in 1905, and the record-breaking measurements have left the country wracked by soaring debt and mass unemployment.

The cannabis sector generates 17.3 jobs per hectare and could create 7,772 formal agricultural jobs by 2025 and 26,968 by 2030, Fedesarrollo said.

“The decree strengthens a strategic sector to have economic growth and job creation,” Ruiz said.

Colombia had 120 hectares dedicated to grow medicinal cannabis, and the expansion potential is large as 450 hectares by 2025 and as much as 1,558 hectares in 2030, Fedesarrollo added.

The decree also strengthens measures for monitoring and control of the licenses issued, so that the authorities have clarity regarding the start of activities. Companies obtaining licenses to grow non-psychoactive hemp will secure licenses for 10 years with the potential to renovate them.

 

Filed Under: Cannabis News

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