Tag Archives: Donald Trump

Below are excerpts from the conversation at the White House press conference where President Trump signed an Executive Order to move marijuana from a Schedule 1 controlled drug to Schedule III.

President Trump: Well, it was a big day, and many reasons, really, for many reasons, and I have a very distinguished group of people behind me. Mostly medical people and brilliant people, and they really know what they’re doing. And I want to thank them. They truly gave their lives in terms of the time and all of the incredible work they’ve done over the years in arriving at the position they have now, the most respected people in the country. Today, I’m pleased to announce that I will be signing an executive order to reschedule marijuana from a Schedule 1 to a Schedule III controlled substance with legitimate medical uses.

We have people begging me to do this. People who are in great pain.

For decades, this action has been requested by American patients suffering from extreme pain, incurable diseases, aggressive cancers, seizure disorders, neurological problems, and more, including numerous veterans with service-related injuries, and older Americans who live with chronic medical problems that severely degrade their quality of life.

I can’t tell you; I think I’ve probably received more phone calls about this… Hopefully, this reclassification, which, by the way, polls at 82%.

It will help many of those patients live a far better life.

We’re joined today by Secretary Robert F. Kennedy, Jr, who’s doing a fantastic job, Administrator of Centers for Medicare and Medicaid Services, Dr. Mehmet Oz, the FDA Commissioner, Dr. Marty Makary, Director of the National Institutes of Health, Jay Bhattacharya, the Director of the National Institute on Drug Abuse, Dr. Nora Valkyo, as well as Dr. Ilana Braun from the Dana-Farber Cancer Institute, Duke University’s Dr. David Casarett, the National Commander of the American Legion, Dan Wiley, and my friend Howard Kessler.

“I want to emphasize that the order I am about to sign is, not the legalization or it doesn’t legalize marijuana in any way, shape, or form, and in no way sanctions its use as a recreational drug. This nothing to do with it.”

Just as prescription painkillers may have legitimate uses, they can also do irreversible damage, if you look at some of the damage that can be caused, wreck lives if they’re abused. It’s never safe to use powerful controlled substances in recreational manners.

I’ve always told my children, Don’t take drugs, no drinking, no smoking. And just stay away from drugs. They would look at me, and they would say, Dad, would you stop saying that? I would say it every time I looked at them, practically. Young Americans are especially at risk, so unless a drug is recommended by a doctor for medical reasons, just don’t do it.

“At the same time, the facts compel the federal government to recognize that marijuana can be legitimate in terms of medical applications when carefully administered in some cases.”

This may include the use as a substitute for addictive and potentially lethal opioid painkillers that cause tremendous problems. Marijuana can help in a less risky way and make people feel much better.

Forty states and multiple U.S. territories have already recognized the use of medical marijuana.

“This reclassification order will make it far easier to conduct marijuana-related medical research, allowing us to study benefits, potential dangers, and future treatments. I believe it’s going to have a tremendously positive impact.”

“We’re also asking Congress to reconsider its classification of hemp-derived CBD to ensure seniors can access CBD products they have found beneficial for pain and other reasons.”

Some people are literally dying with tremendous pain, and this can, in many cases, literally stop it, and they can have their senses about them, as opposed to painkillers, which don’t allow that, don’t allow them to die with dignity, frankly.

I promised to be the President of common sense, and that is exactly what we’re doing. This is really about common sense, and it’s that many people I respect ask me to do it.

People are having problems, big medical problems. They are having big problems with illness, with cancer in particular.

I would now like to invite Dr. Oz to say a few words, followed by Dr. Braun, Dr. Cassarette, Dan Wiley, and Dr. Valkow.

“And, we’ll sign the order as soon as they complete their statement.”

Dr. Oz: Mr. President, thank you for always bravely pushing for common sense change, as you call it. So, President Trump and Secretary Kennedy have been pushing for change, their passion, their desire to help the American people, and they have relentlessly pursued this agenda throughout this administration. This also includes a deep passion for research. Gold standard research, as Secretary Kennedy also says.

But there’s another side to the President that often isn’t reflected in media reports: his deep passion for the people in his life. And he has called me frequently about the people who are calling him, as he alluded to, saying they have problems and have found relief from some of the solutions we’re discussing today. Howard Kessler, who’s standing behind me here, who’s a mutual friend of ours, was an early caller of the President. Many others have reached out as well. And Howard’s been a passionate advocate for avoiding narcotics, especially in seniors, and particularly seniors suffering from cancer.

And that’s a population that is a very important one, and it’s a sympathetic population that’s, like, that’s desires for trying new ways, besides some of the conventional approaches that have been tested by pharmaceutical companies, but have untoward side effects at the beginning of the year.

One of the first things the President told me, he doesn’t actually tell you, he’d demand from me, that my agency, CMS, use all the tools at his disposal to find a better way to help seniors. A passion for a population that has been left behind in these discussions. I promised that we would find an answer, even though it had not been done before, and today we are delivering on that promise.

“Today, our Innovation Center at CMS is announcing a new model and additional actions to give seniors access to cannabinoids.”

These are CBDs, and they’re not addictive, which many are already using to manage pain. There’s some clinical evidence that shows that CBDs provide relief from common conditions that affect Americans, including cancer symptoms, chronic pain, and a slew of other problems that disproportionately affect seniors and our veterans. And 6 in 10 people who use the CBDs report that they improve their pain. I think all of those people are judging the President based on the number of calls supporting what we’re doing today. And sometimes these decisions are difficult, and there’s a reason this hasn’t happened before, and there’s a reason, Mr. President, that every President before you has whiffed on this issue. It’s tough. And I know there’s going to be a lot of discussion about it, that’s why we’re so passionate about making it clear that this patchwork that we’re working within now, the laws and regulations, they’re leaving patients and doctors without adequate guidance on the safeguards of how to use these products, even though they’re still being used.

“At Medicare, we cover 68 million Americans, including people under the age of 65. And they did not have a way of providing these treatments until today. With the President’s insistence, that all changes. The Innovation Center models are going to allow millions of Americans on Medicare to become eligible to receive CBD as early as April of next year, and at no charge, if their doctors recommend them.”

Thanks to the hard work of the entire CMS team, especially Abe Sutton and Gita Dio at the Innovation Center, accountable care organizations in this country working in Medicare will be able to provide these products again at no cost to patients.

“Medicare Advantage insurers, and we’ve been calling them, are also agreeing to consider CBD to be used for the 34 million Americans that they cover. If you can hear my voice and you’re over 65, you should pay attention to this executive order, because it’s going to touch your life.”

“Again, this all becomes active after the first quarter of next year. These CBD products must first meet local and state quality and safety standards. They must come from legitimate sources. They must abide by the other regulations of those states. With these boxes checked, patients can be eligible for up to $500 of hemp-derived products each year. This is the first government-led testing of quality and outcomes for patients across different conditions, and it delivers on the need for more data collection and research into hemp usage.”

“CMS is going to collect data, that’s our job, on the patients that are being given these products by their physicians, and in accordance with all the privacy and security regulations, we’re going to analyze that data, we’re going to make it publicly available to everybody to be able to analyze with us. If it shows promise, we will expand access to these products to even more conditions amongst Medicare and Medicaid beneficiaries. “

FDA Commissioner, Dr. Marty Makary: We want a lot of companies that are doing this research to approach the FDA for formal approval. That is the right way to move forward. And Jay Bhattasharia, who’s hiding in the back, he rarely hides, but Jay runs NIH, and he’s agreed to support initiatives to study the data that we’re collecting.

I thank you again, from the bottom of my heart, for taking a difficult stance. Thank you very much.” Mr. President, members of the Cabinet, thank you so much for the opportunity to be here, and for your leadership in rescheduling cannabis from Schedule 1 to Schedule 3.

“This decision will accelerate scientific research and expand what can responsibly be studied.”

I’m Dr. Ilana Braun, a cancer psychiatrist and medical cannabis researcher at the Dana-Farber Cancer Institute. Over the past decade, federal investment in research has helped transform cancer care. People are living longer than ever before. But cancer care is not only about treating the tumor, but it’s also about addressing the anxiety, the fear, the stress that can come with a diagnosis, symptoms that can interfere with treatment and make recovery much more difficult.

Many medications we use for acute anxiety carry significant risks, particularly in older adults. That’s why we’re studying specific natural compounds found in cannabis, including the non-addictive cannabidiol, to understand whether they can safely and effectively help manage anxiety during cancer treatment. Rescheduling allows us to ask these questions rigorously about dosing, about safety, and who may benefit most.

“This research reflects the best of federal investment, helping people not only live longer, but live better. Thank you, Mr. President, for supporting careful, science-based research that puts patients first. Thank you. Thank you, Doug.”

Duke University’s Dr. David Casarett: “I’ll add my vote of thanks, Mr. President. I never really thought this day would come. I met a patient about 20 years ago, a retired professor named Elizabeth, who came to my clinic. She was dying of pancreatic cancer, and she asked me then whether cannabis might help her. And I said no, because that’s what I learned in medical school. She reached into her briefcase, took out a 3-inch tall stack of articles, put them down on my desk, and said, “Really? Doctor? You should read these. You might learn something.” I read every single article; I found several more, and I learned something. I learned that there actually is some medical benefit to cannabis that I had not anticipated, never heard about in medical school.

Second, I learned that there was a lot we don’t know. And third, I learned it’s really, really, really difficult to do high-quality, randomized controlled trials of a substance that’s federally illegal.

“Rescheduling has the potential to change all of that, and to rewrite the way that we do research related to cannabis in the United States in three ways. First of all, it’ll democratize the research process so that all academic institutions can participate in research, not just elite academic medical centers. Number two, it’ll give patients and researchers access to highly refined, reliable sources of cannabis, rather than relying on one or two sources around the country. And last but not least, it’ll let us do the sorts of large-scale randomized controlled trials that we do in oncology and cardiology. Not dozens of patients, but hundreds or thousands of patients. That’s how we learn, that’s how we produce valuable knowledge that’s useful in guiding treatment decisions.”

Mr. President, I am Dan Wiley, National Commander of the American Legion, representing 1.5 million veterans. We are the largest veterans organization. We have 2.5 million members of our American Legion family. Thank you for your leadership on this issue. This issue is extremely important to the American Legion, and I want to thank you on behalf of the veterans who will benefit from the research. I also want to thank you for your VA Secretary, Secretary Collins, and his work on difficult veterans issues with us this past year. The VA has worked with us on our mission to fight the epidemic of veteran suicide.

“Veterans are disproportionately affected by conditions such as PTSD, TBI, depression, and chronic pain. And with this reclassification, it will allow research to be conducted with regard to cannabis. There is anecdotal evidence that cannabis benefits these conditions, and now we’ll have an opportunity to see if research does prove that it is effective.”

And if it is so, then it’ll open up a whole new method of treatment for our veterans with regard to this particular issue. And so, again, I just want to thank you for your leadership and, on behalf of the American Legion, for this executive order, which will help the many people who have suffered and will suffer much less now.

I’m Nora Volkow, I’m the Director of the National Institute on Drug Abuse, and for us, rescheduling accelerates the rate at which we can conduct research and discovery. And research is crucial in order for us to, for example, understand what may be, and for whom, the dangers of cannabis. Yes, cannabis can be addictive, and adolescents and children may be the most vulnerable. Still, we cannot close our eyes to research and the opportunity that we are hearing from patients, that for some of them, cannabis can solve their problem.

So, first, we need to conduct research to understand those conditions. Number two, in order to be able to learn how to use it optimally, and to understand, number three, what is the danger? And it is knowledge that will allow us to benefit optimally.

Take the benefits behind cannabis, as research shows, but on the other hand, enable us to do prevention interventions to protect those who are most vulnerable.

Secretary of Health and Human Services, Robert F. Kennedy, Jr.: Mr. President, thank you for your leadership and vision, and for finally reaching a closure on this issue. This is a scientific question that has divided our country for many years, and there are valid claims on both sides. On one side, the patients and physicians attached to cannabinoids and THC can have miraculous effects on chronic pain, on epilepsy, on PTSD, and on chemotherapy-induced nausea.

My friend Howard Kessler, without whom we wouldn’t be here today, has driven this change in the schedule because of his experience mitigating the impacts of chemotherapy; he has nothing to gain from this. He saw something that worked for him and thousands of other Americans, and he wants to make it available to them.

On the other side, there are valid claims about the negative impacts, about addiction, about psychosis, about adverse public health impacts, and impacts particularly on young people, which we haven’t been able to verify. The evidence on all of these is anecdotal and hypothetical because we have not been able to do scientific studies. There is no standardized dosing. And if you don’t have standardized dosing, any study that you do is comparing apples to pears. We don’t know the difference between botanicals and synthetics, and we’ll now be able to answer all of these questions.

The prior administration promised to act on this issue. The Biden administration promised to do this, but the proposal became mired in chaos, inertia, and disorganization. I want to thank President Trump, who promised during the 2024 election that he would come in, solve this issue, and take decisive action, and he has kept that promise today. Thank you, President Trump, for your vision; as a result, we will have answers very soon. This will finally allow us to study this issue and to answer these questions for the American people.

Howard Kessler: I just want to help people 65 and over and make a difference in their lives. And we have machines and talent that could do it, not in 8-year clinical trials, but in a year. We’re going to prove that, and it may change the way healthcare works. So thank you, Mr. President.

President Trump, as he signed the Executive Order to move marijuana from Schedule I to Schedule III, said, ” It’s an honor to do this.”

February 14, 2018

Israel’s Cannabis Export Plans Evaporate in Fire and Fury

By Marguerite Arnold

No Comments

Trump Administration-Israeli relations had the distinct whiff of cannabis to them in the first week of February. In a development potentially just as impactful as transplanting Israel’s capital to Jerusalem, it has now emerged that Israel’s president, Benjamin Netanyahu, has effectively scotched, at least temporarily, the country’s budding medical cannabis international export plans on the eve of finally launching them.

Why? To appease the U.S. president.

What this latest act of international “diplomacy” will eventually impact in the long run is anyone’s guess. There will, however, be winners and losers out of this situation, both now and in the long term.

Who Wins

On the surface (and to gentiles) it might be hard to understand why Israel effectively shot itself in the foot from a global perspective. But cannabis falls into complicated geopolitical and religious crevices at home too. Bibi, as Netanyahu is referred to by an international Jewish audience, has just scored political points over the Jerusalem showdown. Why rock the boat over a plant that has so recently gained legitimacy just in Israel? Remember the country only partially decriminalized recreational use in 2017. However, Israel has explored legal medical cannabis for quite some time, and Tikun Olam, the country’s flagship producer, has been growing cannabis since 2007.

Tel Aviv, Israel, where Tikun Olam has a dispensary

The quote from Netanyahu that has been widely circulated in the press says a great deal. “I spoke with Trump and he told me about his general opposition to the legalization of cannabis, and I’m not sure Israel should be the export pioneer.”

The fact that apparent encouragement of this policy came from the Israeli Finance Ministry only underscores the gravity of the impact for the losing side – and what was also probably threatened. Uruguayan pharmacies, who began distributing medical cannabis legally, walked away from customers last year after their banks were first informed by U.S. partners that they would either have to cut off the pharmacies or sever ties and access to the entire U.S. banking system. The cannabis trade was estimated to be worth between $1-4 billion per year to Israeli firms.

That said, this will also be a short-lived hiccup. Netanyahu apparently wants to see more medical evidence before moving forward with the plan. That means Israel will be in the race, but not for the next 12 to 18 months (minimum).

Prime Minister Benjamin Netanyahu (Bibi)
Image: Kjetil Elsebutangen, UD

This will also not affect the cannabinoid-related export of intellectual property, where Israel has also led the cannabinoid discussion and for several generations now. Recipes, breeding instructions and even seeds cross borders more easily than plants. If anything, it will merely sharpen and shape the start up nation’s many budding cannapreneurs in a slightly different focus.

Canadian , Australian and a few other exporters also win. As of 2018, there will also be multiple European countries and EU-based firms importing and exporting (even if it is to each other).

Who Loses

The U.S. legal state cannabis movement has just been served a two fisted punch in the face by the White House. The Trump administration, in fact, has doubled down, in the space of less than five weeks, on its views towards cannabis legalization.

This also means that there will be no U.S. firms in any position to join a now global and exploding legitimate cannabis industry that stretches from the American hemisphere north and south of the U.S. itself. Not only will American producers not be able to get export approvals themselves from the U.S. government, but they may well be facing federal prosecution back home.

It will also be interesting to see whether this heralds any post-Cole memo prosecutions of the many Israeli entrepreneurs already operating in the U.S. state cannabis space. American and Israeli entrepreneurs with IP to protect are also the losers here, no matter how much this is being fought on the California front right now. That is just a state battle. IP must be protected federally.

Investors in the U.S. who had already been tempted to invest in the Canadian cannabis industry, now have little incentive to invest domestically or in Israel, no matter how big and bad California is. There is clearly budding (and less politically risky) competition elsewhere.

It goes without saying, of course, that this decision also hurts consumers – both recreational consumers and medical patients.

Bottom Line

This is clearly sabre rattling of the kind intended to make news both internationally and abroad. However, in direct terms, it will have little impact to the overall growth of the industry, no matter who is doing the growing, distributing and ex-im. The cannabis industry will also clearly not stop being a political business for the near term.

Look for prosecutions this if not next year in the U.S. – potentially in California or another high profile “impact” state. We might see pressure on Netanyahu at home, and probably from abroad as well, to get Israel into the cannabis game globally.

August 17, 2017

Biros' Blog

CWCBExpo: Cut Ties with Roger Stone

By Aaron G. Biros

12 Comments

Update: According to a press release, the CWCBExpo removed Roger Stone as the scheduled keynote speaker for the Los Angeles and Boston shows. We applaud their decision.

Earlier today, the Minority Cannabis Business Association published a Facebook post: “As a result of CWC choosing this guy as their keynote speaker, MCBA has decided to withdraw from attendance and speaking roles at this conference. CWC, you know better so there’s no excuse not to do better.” We at Cannabis Industry Journal would like to voice our support for the MCBA and join them in their withdrawal. We will no longer be a media partner of any CWCBExpo events, unless they remove Roger Stone from the keynote slot.

Roger Stone’s Shady Past

Stone is quite the polarizing figure with a mile-long political career rife with controversy and extraordinary clientele. He co-founded a lobbying firm with Paul Manafort in 1980. In the 1970’s, Stone helped Richard Nixon get elected, the man responsible for the War on Drugs, and proceeded to serve in his administration. In the 1980’s, he never strayed far from controversy. He helped bribe lawyers to help get Reagan elected, and even did lobbying work on behalf of two dictators.

Fast-forward to the 2016 presidential election and Stone’s racism starts to come to light. Although he left the Trump campaign in August of 2015, he remained a loyal supporter. In February of 2016, CNN banned Stone from their network for disgusting tweets about correspondents. He called one CNN commentator a “stupid negro” and another an “entitled diva bitch.” MSNBC subsequently banned him from their network two months later. While he said he “regrets” saying those, he never issued a formal apology. A majority of his tweets are too offensive to republish, but if you need more proof, click here.

Roger Stone
(Photo credit: Barbara Nitke, Netflix)

He accused Khizr Khan, a Pakistani-American whose son was a war hero in Iraq, of being a “Muslim Brotherhood agent helping Hillary.” That is far from the only conspiracy theory he has circulated. He also said Huma Abedin, an aide to Hillary Clinton at the time, was in the Muslim Brotherhood. He’s written a number of books with rampant, false allegations, like Jeb! and the Bush Crime Family, The Clintons’ War on Women and The Man Who Killed Kennedy: The Case Against LBJ. His role in the Trump campaign is a part of the Russian election hacking congressional investigation. He’s credited with introducing Alex Jones, the falsehood-spreading, InfoWars conspiracy theorist, to Donald Trump. On the night of the election, he tweeted a racist photo that is not fit for republication.

Why is this relevant?

Because all of a sudden he is an advocate for cannabis legalization. In 2013, he started working in Florida to help legalize medical cannabis there. According to a CWCBExpo press release, when he keynoted their New York conference this year, he announced that he was starting a sort of bipartisan coalition to persuade President Trump to follow through with his campaign promises to respect states’ rights with regard to legal, medical cannabis. “I am going to be working with a coalition of Republicans and Democrats, progressives and libertarians, liberals, and conservatives to persuade President Trump to keep his campaign pledge, and to remind the president that he took a strong and forthright position on this issue in the election,” says Stone at the New York show. Dan Humiston, managing partner of CWCBExpo, says, “We are thrilled to have Roger Stone keynote again during CWCBExpo Los Angeles & Boston.”

CIJ reached out to the CWCBExpo for comment and Dan Humiston, managing partner, stands by their decision to keep him booked as the keynote speaker:

“Our objective as a show producer in the cannabis industry is we are trying to do whatever we can to help grant access to this plant for anybody that needs it. And to do that we feel that we have to be as inclusionary as we can possibly be. It is nothing more than that. I think there are some real benefits to the cannabis movement that will be gained by getting as many people under our tent as we can. Its funny how this plant brings people together who aren’t together under any other topic; it creates the strangest of bedfellows. The more dialogue and more opportunities to speak with people we can’t agree on any other topic with, the better. I think he is an asset to this movement. He has raised a lot of money. He is pushing Jeff Sessions really hard and he’s got Donald Trump’s ear.”

CIJ also reached out to Reverend Al Sharpton, who is booked for a keynote presentation at the same conference, and he had this to say: “I was not aware that the minority cannabis business association pulled out from the conference,” says Rev. Sharpton. “I spoke at the conference in New York, and I am working with Senator Corey Booker on the legalization of cannabis. Our communities have been directly affected by the criminalization of the drug.” He said he was unaware of the MCBA’s statements and asked for them to get in touch with him as soon as possible.

There’s no place for racism in the cannabis industry.

Yes, it’s great to have an ally of cannabis legalization who might have Trump’s ear. But no, we don’t want Stone’s help. There is no place for someone like him in the cannabis industry.

The historical implications of racism in the cannabis legalization movement should speak for themselves, but allow me to try and quickly summarize why this is so important. The word marijuana is actually a dated racist epithet that Harry Anslinger used back in the 1930’s to promulgate myths that the drug was used by people of color and fostered violence. “Marijuana is the most violence-causing drug in the history of mankind… Most marijuana smokers are Negroes, Hispanics, Filipinos and entertainers. Their satanic music, jazz and swing, result from marijuana usage,” said Anslinger, testifying before Congress. And so begins the era of “Reefer Madness” when the drug became illegal. Fast-forward half a century and the racism with cannabis continues. According to the Minority Cannabis Business Association, the War on Drugs is the main reason behind the huge incarceration numbers for people of color. “The U.S. ‘war on drugs’ — a decades-long policy of racial and class suppression hidden behind cannabis criminality — has resulted in the arrest, interdiction, and incarceration of a high percentage of Americans of color,” reads their agenda.

There are still a lot of racial problems the legalization movement is working to address. There are dozens of reasons why people of color have been wrongly persecuted due to the illegality of cannabis, but the point is this: The cannabis legalization movement needs to be a diverse, inclusive community that promotes equality and embraces all religions, races and ethnicities.

In choosing Roger Stone to keynote, the CWCBExpo is making a Faustian bargain and we don’t believe this is right. We need to stand by our morals; the ends don’t justify the means. The cannabis industry is no place for racism and we would like to see Roger Stone removed from the keynote position at CWCBExpo.

May 2, 2017

Congress Passes Budget With Protections for Medical Cannabis

By Aaron G. Biros

No Comments

On May 1^st, Congress reached a bipartisan deal to keep the government open and funded through September 30^th, 2017. Congress approved the appropriations bill that sets the government’s spending with an important section in it relating to cannabis. Section 537 on page 230 states that the Department of Justice cannot use funds to interfere with states’ legal medical cannabis programs.

The bill uses similar language to The Rohrabacher–Farr amendment, a bill that was originally introduced in 2013 to prevent the Department of Justice from spending money on enforcing the Controlled Substances Act in states with legal medical cannabis programs. This new appropriations bill, with the language in section 537, effectively achieves the same thing. “None of the funds made available in this Act to the Department of Justice may be used, with respect to any of the States of… to prevent any of them from implementing their own laws that authorize the use, distribution, possession, or cultivation of medical marijuana,” reads the bill. The language includes a mention of the 40 or so states and territories with some form of medical cannabis program, legislation or bill.

The language of section 537 (second half)

This means that Attorney General Jeff Sessions is relatively powerless to go on a sort of ‘crackdown’ on medical cannabis programs. Given Sessions’ previous comments and general views on cannabis, this should put cannabis industry stakeholders at ease for the time being. Of course, this budget is only for the 2017 fiscal year, so come September, the same or similar language needs to be included in the next appropriations bill. With Jeff Sessions’ task force still investigating federal cannabis policy, it is still very possible we could get a clear policy decision in the near future.

“We are encouraged that the Federal Government and NIDA are recognizing the true and powerful medical benefits that cannabis provides, especially in the war against devastating opiate-based drug addiction, abuse and death,” says Sally Vander Veer, President of Medicine Man Denver. “We have seen anecdotal evidence of this as reported by our patients/customers (and the beneficial effects of cannabis in numerous other conditions) since we opened our doors in 2010. Our hope is that this acknowledgment will open the door to additional research, eventually leading to legal and safe access to cannabis medicine for all Americans.”

The following section also includes a protection of industrial hemp research, as defined in the Agricultural Act of 2014, which basically means universities and institutions can research it. SEC. 538. “None of the funds made available by this Act may be used in contravention of section 7606 (‘‘Legitimacy of Industrial Hemp Research’’) of the Agricultural Act of 2014 (Public Law 113–79) by the Department of Justice or the Drug Enforcement Administration.” With all of the uncertainty and inconsistent comments coming out of the Trump administration, at least we have a sense of security in the medical cannabis community through the summer.

April 18, 2017

Homeland Security Sec. Kelly Says Marijuana is a Gateway Drug

By Aaron G. Biros

No Comments

According to The Washington Examiner, Department of Homeland Security secretary John Kelly said that marijuana is a gateway drug during a speech at George Washington University on Tuesday. “And let me be clear about marijuana. It is a potentially dangerous gateway drug that frequently leads to the use of harder drugs,” says Kelly. “[U.S. Customs & Border Protection] will continue to search for marijuana at sea, air and land ports of entry and when found take similar appropriate action.” The DEA recently dropped any mention of the gateway drug theory. Many argue it is a myth propagated by drug war stalwarts and even the National Institute on Drug Abuse won’t call it a gateway drug anymore.

Homeland Security Secretary John Kelly
Photo: Chairman of the Joint Chiefs of Staff

During a crime committee meeting this morning, Attorney General Jeff Sessions mentioned a link between the illegal marijuana trade and cartel violence. “We have quite a bit of marijuana being imported by the cartels from Mexico- this is definitely a cartel-sponsored event,” says Sessions. According to The Washington Times, Sessions mentioned violence involving marijuana distribution in the nation’s capital, Washington D.C., where cannabis is legal. “So it remains a significant international criminal organization, the marijuana network,” says Sessions. This is not the first time the Attorney General has suggested a link between the plant and violence. Back in February, Sessions claimed that legal cannabis has led to an increase in violence.

The statements made this morning are the latest in a series of contradictory and uncertain messages on federal cannabis policy by the Trump administration. “DHS personnel will continue to investigate marijuana’s illegal pathways along the network into the U.S., its distribution within the homeland, and will arrest those involved in the drug trade according to federal law,” says secretary Kelly. That message, however, contradicts statements he made earlier in the week.

During a Sunday interview with NBC’s “Meet the Press,” secretary Kelly told Chuck Todd “marijuana is not a factor in the drug war.” In that interview, he went on to add that methamphetamine, heroin and cocaine are the real culprits they are after, noting the high death tolls associated with the drugs and connection to organized crime in Mexico. The Trump administration still has not issued a clear, consistent position on federal cannabis policy.

January 10, 2017

Jeff Sessions’ Stance on Cannabis: Uphold Federal Law

By Aaron G. Biros

No Comments

President-elect Donald Trump nominated Sen. Jeff Sessions (R-AL) for Attorney General back in November. For Sessions to become a member of the cabinet and head of the Department of Justice, the Senate must approve the nomination during a confirmation hearing, taking place today in Washington D.C.

Sen. Jeff Sessions (R-AL) Photo: Gage Skidmore, Flickr — Sen. Jeff Sessions (R-AL)
Photo: Gage Skidmore, Flickr

According to CNN’s coverage of the events, Sen. Mike Lee (R-Utah) mentioned the Obama Administration’s tolerance of states with legal cannabis. “There are federal laws prohibiting the use of marijuana, the sale of marijuana, the production of marijuana, that apply regardless of whether a state has independently criminalized the drug,” says Senator Lee. He then asks if Obama’s actions were indicative of a breach of “the understanding that we [Congress] are the lawmaking body.”

Sessions replied to that by saying that as federal law stands, cannabis is illegal. He says if keeping cannabis illegal is “not desired any longer, Congress should pass a law to change the rule.” He adds that it’s not the AG’s job to enforce or not enforce certain laws. “We should do our job and enforce laws as effectively as we’re able,” says Sessions.

In April of 2016 according to USA Today, Sen. Jeff Sessions was quoted saying “Good people don’t smoke marijuana.” Sessions has a history of making inflammatory remarks, including racist statements. He has also previously mentioned his proud support for the War on Drugs.

aaronsmithncia — Aaron Smith, executive director of NCIA

Sessions’ comments during the exchange today shed some much-needed light on his stance toward legal cannabis. National Cannabis Industry Association (NCIA) executive director Aaron Smith issued a statement on Sessions’ comments made today. In the statement, Smith sounds optimistic regarding Sessions’ comments. “In today’s hearing, Sen. Sessions indicated that the Justice Department’s current guidelines for marijuana policy enforcement are ‘truly valuable’ in setting departmental priorities,” says Smith. “That belief, along with the support for state sovereignty on cannabis policy expressed by President-elect Trump and his team, should lead Sen. Sessions to maintain the current federal policy of respect for state-legal, regulated cannabis programs if he is confirmed as Attorney General.”

“Sen. Sessions also highlighted the conflict created by a Congress that has failed to reflect the will of the voters on cannabis policy,” says Smith. “Voters in 28 states, representing approximately 60% of the nation’s population, have now chosen some form of legal, regulated cannabis program. National polling shows that 60% of Americans believe cannabis should be legalized. It’s time for federal lawmakers to represent the clear choices of their constituents.” Given the Republican support for state sovereignty and Sessions’ comments on Congressional lawmaking, Smith is hopeful that if Sessions becomes the new Attorney General, he will respect states with legal cannabis programs.

December 28, 2016

Biros' Blog

2016 Year in Review: Why the Cannabis Industry Needs Resiliency

By Aaron G. Biros

No Comments

2016 was a tumultuous, but productive year for the cannabis industry. Larger companies began to take interest in the fledgling market, like Microsoft and Scotts Miracle-Gro. This year brought major innovations in technology like market data tools, advances in LED tech, efficient cultivation tech and patient education tools. The Supreme Court set an important precedent by shutting down a challenge to Colorado’s cannabis market.

Voters legalized cannabis in 8 states last month Photo: Nicole Klauss, Flickr — Voters legalized cannabis in 8 states on Election Day.
Photo: Nicole Klauss, Flickr

Election Day brought a renewed sense of vigor to the market with voters in eight states legalizing forms of cannabis. California, Nevada, Maine and Massachusetts passed recreational cannabis measures, making legalization’s momentum seem exponential.

But November 8^th also gave Donald Trump the presidency, and his cabinet appointments, namely Sen. Jeff Sessions as Attorney General, gave many a feeling of uncertainty for the future of federal legalization. Adding insult to injury, the DEA repeatedly stood by their antiquated and ludicrous judgment for cannabis to remain a Schedule 1 narcotic.

Trump nominated Sen. Jeff Sessions (R) for Attorney General Photo: Gage Skidmore, Flickr

A lot of the fervor surrounding public safety could be described as overdramatic or somewhat unwarranted. 2016 was the year of misinformation. Fake news spread like wildfire with people sharing stories like this or this that turned out to be very misleading or just downright false.

States with legal cannabis came under heavy public scrutiny and addressed problems like consumer education, public safety and lab testing. Pesticides became a highly publicized and persistent issue in a number of areas, with some states regulating it heavily and addressing public health concerns. Plenty of new rules were formed surrounding labeling and testing, with Oregon, Colorado and Washington experiencing some regulatory growing pains.

Those growing pains shed light on the need for regulators to craft rules that allow for changes, adding rules where necessary and getting rid of cumbersome rules that might thwart market growth. Rules need to be able to adapt as the industry grows, much like businesses need to adapt to a changing market climate to stay afloat. This is all the more reason why cannabis businesses need to make their voices heard and work with regulators to move things forward.

Pesticide Use was a major issue of 2016 Photo: Michelle Tribe, Flickr — Pesticide use was a major issue in 2016
Photo: Michelle Tribe, Flickr

With so much uncertainty surrounding the future of legal cannabis in America, the word of the year for 2017 should be resiliency. In a social-ecological context, resiliency is “the capacity of a system to absorb or withstand perturbations and other stressors such that the system remains within the same regime, essentially maintaining its structure and functions. It describes the degree to which the system is capable of self-organization, learning and adaptation.”

A warning label for cannabis in Oregon after the October 1st compliance deadline

Self-organization, learning and adaptation are three very important attributes of a resilient system. Without knowing what will happen when Trump’s cabinet takes the reigns of federal agencies, it is important to prepare for the unexpected. Adhering to standards like FOCUS allows cannabis businesses to prepare for unexpected events like recalls or product safety failures.

Those standards could also become the law down the road, as government officials often look to an industry’s voluntary consensus-based standards when deciding how to regulate it. In 2017, a number of state governments will embark on the heavy undertaking of writing the regulatory framework for legal cannabis.

2017 will bring opportunities and challenges to the cannabis industry. The industry’s rapid growth juxtaposed with political, economic and regulatory uncertainties create a climate that requires resilience to be built into the system at all levels. It is critical, now more than ever, that cannabis businesses build strong relationships with industry groups, advocacy groups and regulators to craft the institutional capacity and mutual trust needed to weather the uncertainty ahead.

November 30, 2016

Biros' Blog

Trump’s Cabinet Not Cannabis-Friendly, But Don’t Panic Yet

By Aaron G. Biros

No Comments

President-elect Donald Trump nominated Sen. Jeff Sessions from Alabama for Attorney General and Rep. Tom Price from Georgia as the new Health Secretary. Those appointments still require Senate approval before they are officially members of the cabinet. Neither of the picks to head the Department of Justice (DoJ) and the Department of Health & Human Services (HHS) is friendly to cannabis.

What’s the bad news?

Both of those agencies are at the center of any federal regulation of cannabis, including access for research. As Attorney General, Jeff Sessions would essentially have the ability to block any rescheduling efforts, as outlined in the Controlled Substances Act.

Sessions has made inflammatory, racist remarks and showed his disdain for cannabis users on multiple occasions. He disgracefully said at a Senate hearing in April, “Good people don’t smoke marijuana.” When he was a federal prosecutor, Sessions was a prominent advocate for the War on Drugs, and perhaps even still is.

Rep. Tom Price (R-GA) Photo: Gage Skidmore, Flickr — Rep. Tom Price (R-GA)
Photo: Gage Skidmore, Flickr

Tom Price, a Republican Congressman from Georgia, has voted repeatedly against pro-cannabis legalization bills, including twice against the Veterans Equal Access Amendment as well as the Rohrabacher/Farr Amendment, which “prohibits the use of funds in the bill to supersede State law in those States that have legalized the use of medical marijuana.” NORML’s Georgia Scorecard gave Tom Price a D grade for his previously voting against pro-cannabis bills.

What’s the good news?

While Sen. Jeff Sessions is certainly no friend to legal cannabis, I believe he is not a serious danger to the cannabis industry. This op-ed on CNN does a terrific job at summing up Sessions’ potential threat to the cannabis industry, but also why it may not be cause for a total panic. The author mentions a laundry list of DoJ priorities over cannabis, but I think the larger issue at hand is states’ rights.

Republicans are historically passionate when it comes to keeping states’ rights sovereign. With cannabis’ big wins on Election Day, a majority of the country’s population now lives in states where cannabis is legal.

There is too much momentum behind legal cannabis for a new administration to waste precious resources and time on trying to disrupt it. States are getting too much tax revenue from regulating cannabis to just let the DoJ interfere with their economies. “Voters in 28 states have chosen programs that shift cannabis from the criminal market to highly regulated, tax-paying businesses,” says Aaron Smith, executive director of the National Cannabis Industry Association (NCIA). “Senator Sessions has long advocated for state sovereignty, and we look forward to working with him to ensure that states’ rights and voter choices on cannabis are respected.” Smith’s words in the NCIA statement are pointed and clear: this is a states’ rights issue at heart and they must respect that.

By forcing the states’ rights issue to the front, it is possible to put legal cannabis in a bipartisan lens, thus eliminating the possibility of a few old drug war stalwarts disrupting the industry. While rescheduling efforts could be thwarted for the coming years, I have faith that the federal government will not interfere with states that legalize cannabis.

November 9, 2016

Election Day Results for Cannabis: California, Nevada, Massachusetts, Maine Legalize Recreational Cannabis

By Aaron G. Biros

No Comments

Update: With 100% reporting (589 of 589 precincts), voters in Maine passed Question 1, legalizing recreational cannabis by a very narrow margin of 50.2% to 49.8% (378,288 in favor and 375,668 against is a margin of only 2,620 votes)

Voters in California, Massachusetts, Maine and Nevada passed ballot initiatives legalizing the recreational use of cannabis, creating huge new markets for the cannabis industry overnight. Voters in North Dakota, Florida, Montana and Arkansas passed ballot initiatives to legalize forms of medical cannabis. Voters by a margin of 52.2% to 47.8% rejected Arizona’s Proposition 205, which would have legalized recreational cannabis.

With 100% of the votes in for Maine’s Question 1, voters narrowly passed legalizing recreational cannabis, the polls show it won by a very slim margin, less than 3,000 votes.

New Frontier Data and Arcview Market Research released an Election Day update to their growth projections for the cannabis industry by 2020. The release projects: “The legalization of cannabis in California, Massachusetts, Nevada, Florida, Arkansas and North Dakota will result in new markets that account for $7.1 billion in sales by 2020. We project the overall U.S. cannabis market will exceed $20.9 billion by 2020.” Those numbers include overall cannabis sales and assume the markets are all fully operational by 2018.

Giadha DeCarcer, (photo credit: CNN Money) — Giadha DeCarcer, founder and CEO of New Frontier (photo credit: Frontierfinancials.com)

According to Giadha DeCarcer, founder and chief executive officer of New Frontier, there is overwhelming support for medical cannabis and a majority of Americans are in favor of legalizing recreational cannabis as well. “The ten initiatives on the ballot reflect the accelerating public debate on legal cannabis access,” says DeCarcer. “The passage of California’s adult use measure and Florida’s medical initiative expand legal access into two of the country’s most populous states.” The market potential is notably enormous in California, it currently being the 6^th largest economy in the world. “Additionally, the passage of the measure in Massachusetts opens the first adult use market in the Northeast extending the reach of legal adult use access from coast to coast,” says DeCarcer. “The passage of the measures in Arkansas and North Dakota shows that public support on this issue is not solely confined to urban, liberal markets but extends into conservative rural states as well.”

According to the release, by 2020 California could reach a total market size of $7.6B and Massachusetts could grow to $1.1B. Massachusetts being the first mover in the Northeast to legalize recreational cannabis will be watched very closely by a number of surrounding states that appeared bullish on cannabis legalization previously.

Leslie Bocskor, president and founder of Electrum Partners, believes the Election Day results will bring an influx of investing opportunities to the industry. “We are going to see a diverse approach from the irrationally exuberant to the sophisticated and experienced investor and entrepreneur getting involved, creating businesses and investing in the industry that will create innovation, jobs, wealth and tax revenue far beyond the consensus expectations,” says Bocksor. “The cannabis industry is more than one industry; it is an entire ecosystem, impacting so many verticals, such as agriculture, industrial chemicals from hemp, pharmaceuticals, nutraceuticals and more. We see the funding of innovation that might have been absent without the velocity and heft that has come from this phenomenon,” adds Bocksor. As these newly legalized markets begin to launch, it will require a considerable amount of time to see the industry flesh out in each new state.

Donald Trump winning the presidential election and the GOP retaining control over the House and Senate could mean a lot of uncertainties for the future of the cannabis industry on a national scale. President-elect Trump has previously flip-flopped on the issue of cannabis legalization, but has said in the past he favors leaving the issue of medical use up to the states, advocating for access to medical cannabis, while recently saying he opposes regulating cannabis for adult use, according to the Marijuana Policy Project. The MPP gave him a C+ grade for his views toward cannabis.

On The O’Reilly Factor in February 2016, Trump told the conservative political commentator that he supports medical cannabis while opposing the recreational use. “I’m in favor of it [access to medical cannabis] a hundred percent. But what you are talking about [recreational use], perhaps not. It’s causing a lot of problems out there [in Colorado],” says Trump. It is still unclear at this time exactly what Trump’s policy will be for the now 28 states that have some form of legal cannabis.

Aaron Smith, executive director of the National Cannabis Industry Association (NCIA), appeared optimistic regarding the outcomes of Election Day. “More than 16 million voters, including in two of the three most populated states in the nation, chose legal, regulated cannabis programs that promote safety, boost the economy, help sick patients and address social injustices,” says Smith. In the press release, the NCIA spelled out their priorities for congressional action on cannabis policy: Opening up bank access for state-compliant cannabis businesses, ending the effects of federal tax code Section 280E on cannabis businesses and removing cannabis from the Controlled Substances Act via descheduling. “Last night’s results send a simple message – the tipping point has come,” says Smith.