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WHAT 2019 HAS TAUGHT US ABOUT WHAT 2020 WILL LOOK LIKE: PROCEED WITH CAUTION

12/31/2019

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By Shuki Greer, Esq. ​
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Year 2019 was an up and down year for the cannabis industry. As the year comes to a close, let us take some time to reflect on what transpired during this transitional period for the cannabis industry. Hopefully, a detailed look at what happened may shed some light on what is ahead in 2020. 
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First, public opinion on cannabis has continued to rise. For the first time, poll results suggested that more than two-thirds of Americans support legalization. Such a pervasive, bipartisan, agreement for a fundamental change in the law is rare, and is a true reflection of the state of the industry now, and where the industry is headed. 

​Riding along with public opinion, Congress saw more movement towards full legalization than in any single year prior. The list of cannabis-related bills that were introduced in Congress this year tops 15, covering topics from banking to immigration. Most noteworthy among those bills are the MORE Act, a comprehensive legalization bill that passed its committee in the House, and the SAFE Banking Act, which passed the full House by a landmark 321-102 bipartisan vote. At the same time that these provide an optimistic outlook for the federal regime, no actual progress has been made in Congress, largely because the Republican-led Senate remains staunchly opposed to reform (google “Mitch marijuana machete” for an idea of Mitch McConnell’s recent activities relating to drug policy reform).

The executive branch has not been without movement either. President Trump does not have the traditional hard-lined anti-cannabis stance that some Republican leaders espouse. He campaigned on a platform of not interfering with states’ ability to manage their own medical and adult-use programs. He has publicly stated his support for the States’ Act, a bill that would essentially codify the same, leaving enforcement up to the states. Under Trump, the FinCEN continued its policy of allowing banks to do business with the cannabis industry, assuming that the Suspicious Activity Report (“SAR”) requirements were being followed. There are also no known examples of DEA or other federal law enforcement actions taken against operators lawfully operating under state law. 

At the same time, the executive branch has made moves against the legalization movement. In 2018, then-AG Sessions rescinded the Cole Memorandum, signaling that the feds were looking into increasing enforcement against cannabis businesses (Thankfully Sessions is no longer a part of the administration, as his views are notoriously more anti-legalization than Trump’s). Just last week, as Trump signed the yearly spending bill into law, he attached a vague statement reserving the right to enforce federal law even in the face of full state-law compliance. Overall the federal government has progressed, albeit slowly, in the right direction. 

Many states had significant progress towards legalization in 2019. Illinois became the 11th state to fully legalize adult-use, while Hawaii, New Mexico, and North Dakota decriminalized. We now stand with 33 states having passed a robust medical program, a full two-thirds of the union. Bills were proposed in more than two dozen states, some to expand existing frameworks, and others to create new ones. Just this week Alabama’s legislature’s commission recommended legalizing for medical purposes, a stark shift from the traditional views thought to be widely-held in the deep south. Overall the trend is clearly moving towards more states joining the legalization team, some quicker than others. 

Though 2018 set a high bar for the hemp/CBD industry in terms of significant reform, Year 2019 arguably topped the significant progress of the 2018 Farm bill. In October, the USDA published its interim final rule, providing much-needed guidance to the hemp community. It created a federal framework for hemp farmers, creating registration, licensing, and testing requirements. It also allowed states to create their own systems, and many of the largest states for hemp farming are doing just that. FinCEN, the same treasury bureau that regulates banking for marijuana businesses, announced in December that banks may do business with the hemp industry without having to adhere to the SAR reporting requirements like those doing business with marijuana.

At the same time, the hemp/CBD industry skyrocketed in 2019. We saw an explosion of CBD products, and the industry is now estimated to be worth $4 billion. Tinctures, edibles, lotions, balms, you name it, someone has put CBD in it and made money this year. There remains so much uncertainty about the legalities of the market, and many have taken advantage of this “Wild West” atmosphere to quickly seize market shares, without guaranteed continuity once enforcement occurs. Year 2019 was not without foreshadowing of enforcement, however. In November, the FDA sent out warning labels to several companies that were selling CBD products. The letters go into detail regarding the various items being sold and analyzed how each company was violating various laws. Although the FDA hasn’t actually seized anyone’s assets or froze any bank accounts, they are clearly watching and thinking about doing it. 

A really interesting piece of news swept the nation this year. At the beginning of November, the NYPD posted a picture of two officers posing with “106 pounds of marijuana that was destined for our city streets”, bragging about its success. Only one problem… it was all legal hemp, with certifying papers and all. The NYPD quickly dropped all the charges, and recently returned the hemp to the owner. This incident also highlights a significant issue with the hemp industry, in that it comes from and has all the outward appearance of marijuana, leading to confusion and enforcement problems. Until law enforcement agencies are properly trained, this type of incident is likely to repeat itself. 

​Year 2019 also took its toll on many cannabis companies. Large companies like Eaze and MedMen had to lay off many employees, as the actual returns were less than what their projections anticipated. Many stocks took big hits in 2019, for the same reasons. The projections for the industry have been huge, and are likely accurate, but are also likely skewed because of the nature of the industry. There is still a large “traditional” market in existence, which continues to dwarf the legal one. While some have come out of the shadows, progress remains slow because of the monumental taxes, regulations, and difficulties associated with being a fully-legal operating cannabis company. 

WHAT ABOUT 2020? 

The year 2020 is upon us. The cannabis industry is not going anywhere. It will continue to grow and mature as the year goes on. We aren’t going to see any reversal of the general trend towards legalization. At the federal level, I don’t believe that 2020 will see a single cannabis bill passed and enacted into law, and certainly nothing like full legalization. The country is not ready for it yet, as many of the industry leaders remain staunchly opposed for two reasons. First, there remains distrust and skepticism that is leftover from the reefer madness days. Many politicians still feel that marijuana is a gateway drug to other substances, and until they are convinced otherwise will stay opposed. Second, and more sinister perhaps, legalization denotes trouble for industries like alcohol, tobacco, and pharmaceuticals, all of whom stand to lose significant market shares once cannabis replaces these vices as people’s substance of choice. Lobbyists for these industries continue to work tirelessly to oppose legalization, and members of Congress are still forced to follow. Until these issues change, we must wait for full legalization.

At the state level, change will happen, and rapidly. Already several states seem poised to have recreational programs on the ballot, in states where it is almost certain to pass. These include New Jersey, New York, North Dakota, Minnesota, Vermont, and Pennsylvania, all of whom will pass legalization by years end. More states will join the medical bandwagon, leaving perhaps one or two states with absolutely no cannabis legalization framework. 

Public opinion will continue to positively increase and have more of an impact on the industry. If in 2019 we finally hit 66%, I predict that Year 2020 will have us hit 75%. As the younger generation grows up, and as the older one retires and fades away, the numbers will continue to rise. At the same time, science continues to develop, as new studies are coming out nearly every week showing another beneficial use of the cannabis plant. At the same time, organizations like CED Foundation and The IJCA continue to run awareness campaigns and spread the word, adding to the number of people who are exposed to ideas and understanding of the plant’s many uses. More studies and more awareness, reaching even more people, means more backing for legalization.

Hemp is poised for a huge gain in 2020. With the federal regulations in place, the industry now has definitive guidance on the government’s position. While CBD as medicine remains a tricky subject, certainly hemp’s use as a tobacco alternative, a plastic alternative, textiles, fabric, and other industry uses will skyrocket. I also believe that 2020 will see the FDA, DEA and USDA will work out some of the kinks with using CBD as an active ingredient, providing helpful guidance to an industry running around like a headless chicken. Once that occurs, again, the industry will expand rapidly, as more certainty from the government will allow more companies to enter the market.  

Lastly, I think 2019 brought some valuable lessons to the industry. The way the projections did not turn into reality, and the hits that many businesses had to take, give us some really important lessons. Caution is urged when investing in an industry plagued by burdensome regulations and strong financial incentives not to join the legal market. The “traditional” market remains the elephant in the room. The likelihood of real enforcement crackdown is low, because of limited resources, sheer numbers, and the probability that any enforcement would result in really bad press. Because investors have now been warned, the industry’s growth will slow. We will continue to see startups join the market, but perhaps on a smaller scale. 

I hope that this discrepancy between projections and sales will also be a lesson for our legislatures. They need to come up with solutions that create subsidies for those coming out of the shadows so that states can see the actual revenues they hoped for. They may have to accept several billion in illegal sales as water under the bridge. They may have to lower tax rates to incentivize people to legitimize their operations. They may have to lessen the licensing requirements, making it easier and cheaper for those interested in joining to actually do so. The specific decisions are theirs to make, but they need to get creative about solving this problem.
​
Overall 2019 was a successful year for the industry. Even the downsizing and financial hits taken will prove to be valuable in the long run. Just like getting out of bed too fast can result in injury, an industry that expands too rapidly can result in harmful consequences. 
​


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The Dietary Flavonoid, Luteolin, Negatively Affects Neuronal Differentiation

12/28/2019

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In Summary: 
​
The Importance of Chemical Structure: Functional Groups of Flavonoids

A recent study has revealed the detrimental effects of the flavonoid luteolin on neuronal differentiation in embryonic stem cells. Luteolin is a dietary flavonoid that has been researched due to its anti-cancer, antioxidant, and anti-inflammatory actions and is now being looked into for its supposed neuroprotective qualities. This study found that although luteolin does have some neuroprotective benefits it also has harmful side effects on neuronal development.  Apigenin is a similar flavonoid that also has neuroprotective qualities but does not disrupt differentiation, emphasizing how slight differences in chemical structure can change the effects of a flavonoid. ​
The study is available for review or download here
view more studies like this in the ced archive
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A Flavonol from Sweetscented Marigold Alleviates Pain

12/24/2019

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In Summary
Tagetes Lucida as a potential analgesic

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Researchers have recently provided evidence that a flavonol extract derived from a common flower has antinociceptive (pain-relieving) properties. Sweet-scented Marigold has been used is frequently used in cooking techniques in South America and has now been found to alleviate pain through serotonin and opioid mechanisms of action. The antinociceptive properties of this flavonol, like those of many other plant-derived compounds, are ripe for testing in a clinical setting to determine their effectiveness in human patients. In this small animal study, it clearly demonstrates promise as a safe alternative to commonly used pain medications. 

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Modern medicine seems to have largely forgotten its roots. Long before pharmaceutical companies were the source of all medication, the earth served as a resource for medications, and apothecaries, pharmacists, and druggists, as they were known, supported the medical industry with formulations and a deep understanding of natural resources. As the greater scientific arena and dominant culture have lost touch with the earth's natural medicinal resources, our culture has lost a deeply valuable reservoir of opportunity. As the fast-paced life of modernity demands faster results on an ever-greater, mass-production scale, the construction of sprawling cities, which often demands deforestation and destruction of natural resources, may turn out to be a greater threat to human health than most of us have yet to even understand.

The study is available for review or download here
view more studies like this in the ced foundation archive
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The Art of Medicine - Medical Misinformation and The Internet: A Call to Arms

12/24/2019

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In Summary
Call to Arms: Share Accurate Medical Information on the Internet

​ In a piece by Jen Gunter, an OBGYN clinician and pain specialist, she calls on other physicians to help educate the public by sharing accurate medical information and encourages the public to participate by liking well-cited sources. Medical misinformation spreads like wildfire, promoting bogus products to ill-advised patients, or convincing people that their headache is due to cancer. Dr. Gunter was encouraged to write this piece due to her own experience raising her premature children and finding mountains of misinformation.
Help other physicians and foundations like the CED Foundation to spread accurate medical advice and well-sourced evidence-based medical literature by sharing well-cited articles and liking posts that you find helpful. The more popular a post is the more likely it will pop up on other peoples pages due to social media platforms algorithm. Help spread accurate medical information! 
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Medical Cannabis for Adults Over 50

12/22/2019

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In Summary

​As with all elements of the aging process, the human endocannabinoid system loses tone over time. Whether it is a reduction in the numbers of cannabinoid receptors or a slow waning of the machinery used to create the signaling molecules that bind to the receptors or the natural senescence of the system that supports all of these normal signaling processes, the fact remains that adults over 50 are best-suited for external support for the endocannabinoid system.

Indeed, the average age at dispensaries is surprising to most who are not familiar with the modern medical cannabis arena. Baby Boomers, perhaps more than any other age group, tend to dominate the medical cannabis dispensaries. This is no new phenomenon, however. Through the ages, across cultures and around the globe, cannabis has been consumed primarily by older adults. Whether by tribe elders, wise councilmen, spiritual leaders, or the educated elite, cannabis has been an integral part of human aging for as long as we have recorded history.

Here, a review out of Israel followed at 184 patients over 65 (average age was 81.2) beginning cannabis treatment. 63.6% were female. "After six months of treatment, 58.1% were still using cannabis. Of these patients, 33.6% reported adverse events, the most common of which were dizziness (12.1%) and sleepiness and fatigue (11.2%). Of the respondents, 84.8% reported some degree of improvement in their general condition."
​
Appropriately, the authors advise caution for older adults related to those adults who may be consuming multiple pharmaceuticals, for potential medication interaction effects, as well as nervous system impairment, and increased cardiovascular risk for those who may quire the concern. Wisely, they recommend that "Medical cannabis should still be considered carefully and individually for each patient after a risk-benefit analysis and followed by frequent monitoring for efficacy and adverse events."
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At CED Clinic, we have long seen that the average age of medical patients is over 50. Whether for concerns related to sleep, pain, mental or physical health, it seems as though Baby Boomers have either weathered enough politics to have developed a healthy cynicism for the misinformation campaigns of the 1930s and 1970s, or they have direct or indirect experience with cannabis to have learned of its safety and efficacy. Either way, it is quickly reclaiming its historical place in the care of older adults, although oddly... it seems to be a demographic skipped over by the marketing systems of most establishments in the cannabis arena, at least for now. ​

The study is available for review or download here
View more studies like this in the ced foundation archive
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An Analysis of Sudden Cardiac Death Exposes the Danger of Tobacco and Cocaine

12/21/2019

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In Summary
​
Sudden cardiac death associated to substances of abuse and psychotropic drugs consumed by young people.

A population study based on forensic autopsies.

A recent study out of Spain has revealed alarming trends among cases of sudden cardiac death associated with substances of abuse consumed by young people. Half of the 15-36-year-olds who suffered sudden cardiac death were found with illicit substances in their bodies, primarily cannabis, tobacco, and cocaine. Researchers found that although cannabis was the most common substance found in the deceased systems, cocaine and tobacco are known to have a stronger impact on the cardiovascular system and lead to ischemic heart disease, which is often the more acute causes of sudden death. It was also mentioned here that the duration of cannabis is far longer in the body than that of either tobacco or cocaine, and this duration may easily confuse people to associate it as a trigger for sudden death.
However, on the other hand, there are several tragic cases of young, otherwise heart-healthy individuals who have died with cannabis as the only substance discovered. Fortunately, these cases are extraordinarily rare, but unfortunately, no reproducible association has been established, so the mysterious concerns are not easily relieved or forgotten. 
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​While the return of medical cannabis to modern medical care seems to bring with it a return of appreciation for more naturalistic care, it is critical for us all to recognize that we still have much to learn. The tools and high standards of scientific evaluation have only recently been applied to cannabis, and there are reasonable arguments that the usual tools may not actually apply (for example, some are suggesting that the placebo effect, a cornerstone of randomized control trials may be a facet of effects related to the endocannabinoid system.)
For these, and a great many other unknowns, it is important for the discerning consumer to consult with trusted resources, including friends, family, scientists, and where possible, doctors, to ensure the appropriateness of use on an individual basis.

The study is available for review or download here
View more studies like this in the ced foundation archive
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Association of E-Cigarette Use With Respiratory Disease Among Adults

12/17/2019

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By Lilly Bertone
In 1969 Congress passed the Public Health Cigarette Smoking Act, which rolled out mandatory warnings to be printed on all cigarette packaging to inform the public that smoking cigarettes was dangerous. Since then, more studies have come out proving the dangers smoking can cause, especially in regards to respiratory health. Tobacco companies have been working on a new way to attract customers without alluding to the dangers of their products. Enter the electronic cigarette; a sleek and discreet alternative to the stinky, scary original. Consumers enjoyed the e-cigarettes because not only could they get their nicotine fix with an array of flavors and potency, but it was even marketed as a safe way to lessen smoking habits. This raised the question of whether it was actually a safe alternative. Data collected from the national study Population Assessment of Tobacco and Health (PATH) was used to determine if there was any association of using e-cigarettes with respiratory disease.
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Photo from truthinitiative.org
What sets e-cigarettes apart from the regular kind is it’s mechanics and added ingredients. Users heat a liquid that contains not only nicotine but added ingredients like propylene glycol, glycerine and metals. The aerosol created is then inhaled and processed through the respiratory system. ​
In animal studies, repeated exposure to those heated ingredients caused chronic pulmonary inflammation, immune system damage and COPD. It is not surprising that people who had used e-cigarettes expressed immune suppression in the nasal mucosa, resulting in weakened immune systems and a particular susceptibility to respiratory diseases like chronic bronchitis and pneumonia. When the immune system is weakened, it can cause a domino effect of negative conditions. This is in alignment with existing literature that shows an increased risk of respiratory disease is associated with other ailments like hypertension and diabetes. 
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People who choose to smoke tobacco in other ways like hookah or cigar were still exposed to nicotine, but not as many harmful additional chemicals like those found in regular or electronic cigarettes. Many people began using e-cigarettes in combination with regular cigarettes to try to cut back all around use. Unfortunately, biomarkers showed higher nicotine and toxicant exposure with dual users than those who used just one method. ​

While this study focused on the effects of e-cigarettes that contain nicotine, the same warnings should be observed by those who are using cannabis e-cigarettes or “vape-pens”.  The cartridges containing cannabis may also contain dangerous ingredients like propylene glycol and metals. Just last week, the CDC released a notice that Vitamin E Acetate was linked to a multi-state outbreak of respiratory diseases in users of both nicotine and cannabis vaporizers, so it is important to always check the labels of anything you are inhaling or ingesting.
View and Download the article HERE
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Breathing Easier: An Update on the Massachusetts Vape Ban

12/13/2019

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By Lilly Bertone
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Yesterday, December 12th 2019, the Cannabis Control Commission released an amended quarantine order, ending the current ban on THC vaporizing devices and products. Don’t go running to the dispensary yet, though. Licensees now have a list of new compliance regulations they need to implement before sales get started up again. 
Customers will now have the knowledge of all additives used in the production of the contents inside the cartridge (like thickeners and reintroduced terpenes) and the manufacturing information of the batteries, atomizers and coils used in the vaporizing devices. This can’t just be shared by word of mouth at check out. A disclaimer and warning of potential health risks associated with vaping must be posted in the store and printed literature with that same disclaimer and warning must be included at the point of sale. The licensees will also have to update their website with this information.
The ban originated on November 12th as a result of a public health crisis declared by Massachusetts Governor and the CDC. The additive Vitamin E Acetate (VEA) was found to be the cause of a multi-state outbreak of E-cigarette and Vaping Associated Lung Injury (EVALI).  Over 1,000 patients reported using a vaping device and then feeling symptoms like chest pains, coughing, and even death. ​
Further investigations prompted the amendment from the CCC because of the samples collected from licensed marijuana establishments and medical treatment centers, none contained VEA. Echoing the point made by the public that these illnesses were from a non-regulated establishment, or the “black-market”. 
​

 If you have a vaporizing product purchased before December 12th and are concerned about it’s contents, the establishment should have the product’s original testing information. As always, if you need guidance on vaporizing cannabis for medical relief, reach out to us here at the CED Clinic! 
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