Global Ganja Report

Uruguay's government announced Oct. 1 the granting of licenses to two companies to grow cannabis for commercial distribution. Juan Andrés Roballo, head of the National Drug Board, said the two companies chosen out of 22 applicants were Symbiosys and Iccorp, both start-ups financed by Uruguayan and foreign capital. They will each be allowed to produce two metric tons of cannabis yearly—with the plantations to be guarded by government troops. Uruguayans will be able to purchase 10 grams (about a third of an ounce) weekly. Roballo told reporters that cannabis will go on sale in the country's  pharmacies "in no less than eight months from now."

On Sept. 11, the California state legislature approved a trio of bills to establish comprehensive regulation and licensing of medical cannabis. Assembly Bills 243 and 266 and Senate Bill 643 were all passed, and will delegate regulation of commercial medical cannabis cultivation, manufacturing, transportation, and distribution to various state agencies as well as create a state-level licensing system. Gov. Jerry Brown is widely expected to sign all three pieces of legislation. "We're glad the legislature has finally been able to move forward on regulations," said Don Duncan, California direcotr of Americans for Safe Access (ASA). "History has shown that regulation can improve community outcomes while still preserving patient access. Passing medical cannabis regulation before the state moves forward with a potential adult-use recreational system next year is extremely important for the preservation of the medical cannabis program.”

The 9th US Circuit Court of Appeals in San Francisco on Aug. 20 rejected the city of Oakland's intervention in the US Justice Department's effort to shut the Harborside Health Center, finding that the legal move steps on the federal government's powers. In a unanimous three-judge ruling, the court acknowledged that Oakland had a right to sue, but said its arguments would undermine federal drug enforcement powers. The 9th Circuit was reviewing a 2013 lower court ruling tossing out Oakland's suit. The suit argued that a federal shut-down of one of four city-approved dispensaries would harm Oakland's interests and override California's 1996 medical marijuana law.

Israeli newspaper Haaretz on Aug. 15 featured an interview with the "King of Israel's Medical Marijuana Industry," Aharon Lutzky—who rose to this position by chance. The fateful moment came when his son was injured in an industrial accident in the cotton gin at Kibbutz  Gvat, the agricultural collective in Israel's north where he was then living with his family. As part of his rehabilitation process, Lutzky's son began volunteering for the company Tikun Olam—Israel's largest producer of medical marijuana. Tikun Olam eventually asked the elder Lutzky to help by giving them business advice. Lutzky so impressed the owners that they offered him the position of CEO, which he still holds today. The profile provides a fascinating look at the evolution of Israel's ground-breaking medical marijuana program.

We noted last year that a Seattle-based equity firm is planning to market "Marley Natural" brand cannabis in states where it is legal. Now it seems guitar god Jimi Hendrix is to be thusly immortalized. The San Diego Union-Tribune reports that Toronto-based Nutritional High International Inc announced this week that it has "entered into an exclusive licensing agreement...under which the Company may manufacture and distribute various marijuana and hemp-based edible products using the song titles and bearing the likeness of iconic guitarist Jimi Hendrix." The products in question, to be marketed under the "Edible Experiences" banner, include "Purple Haze" and "Stone Free" lines. (There's already a Purple Haze cannabis strain developed by Dutch growers, although the song was more likely about the LSD experience.) In a cute twist, the "Stone Free" line is to be a preparation infused with CBD—the cannabinoid that is thought to have medicinal value but doesn't actually get you stoned.

The town of Raymondville, Tex., got a shock over the weekend as the local Willacy County Correctional Center exploded into an uprising by prisoners upset over conditions and poor medical services at the facility. The inmates set fire to several kevlar domes or tents that serve as housing for the 2,800 prisoners at the facility, rendering the prison "uninhabitable." The federal Bureau of Prisons and FBI as well as Texas Rangers and highway patrol were called in to evacuate the inmates to other facilities and negotiate with those who refused to move. Raymondville's residents were advised to stay indoors during the stand-off, and a local school was put on "soft lockdown." The Correctional Center, which mostly holds undocumented immigrants, is run by the private Management & Training Corp.  

The Pinoleville Pomo Nation of Northern California's Mendocino County is set to be the first Native American tribe to grow cannabis, pursuant to the new Justice Department policy taking a hands-off approach to cultivation on Indian reservations. The 250-member tribe signed a contract last month with Kansas-based FoxBarry Farms and Colorado-based United Cannabis to develop a large-scale grow operation on its 99-acre rancheria just north of Ukiah. "We anticipate construction to begin in early February, and operations to commence by the end of the month," Barry Brautman, president of FoxBarry Development Company, told Indian Country Today Media Network. "Our first phase will include 90,000 feet of greenhouse space, and another 20,000 feet of indoor space." FoxBarry will also oversee distribution for California's medical market. Cannabis grown on the rancheria will be distributed only to card-holding medical users and dispensaries. “Our business model involves doing everything legally and by the book,” Brautman emphaszied to the Santa Rosa Press-Democrat.

In the most serious challenge yet to Colorado's cannabis legalization policy, the states of Nebraska and Oklahoma took the unusual move of filing a case against it directly with the US Supreme Court. The two states argue that "the State of Colorado has created a dangerous gap in the federal drug control system...  Marijuana flows from this gap into neighboring states, undermining Plaintiff States' own marijuana bans, draining their treasuries, and placing stress on their criminal justice systems." Lawyers for the Cornhusker State and the Sooner State assert that local authorities have registered a big uptick in cannabis entering their towns since Colorado legalized with voter-approved Amendment 64 in 2012. The suit also claims Colorado's legalization policy violates the Supremacy Clause of the US Constitution.