How Silicon Valley is helping overturn marijuana convictions

Marijuana expungement is an often laborious, bureaucratic process, but algorithms have eased the process.

Following marijuana legalization, states and cites have emphasized correcting the records of those affected by the War on Drugs. An estimated 20 million people were arrested for a marijuana-related offense over the past 30 years. When individuals have cannabis convictions on their record, it limits their opportunity to acquire employment, access stable housing, and participate in their children’s school activities.

While cities like Seattle have offered opportunities for individuals to clear their records, the process is often laborious and bureaucratic. Take San Francisco, for example. In 2017, the city announced more than 9,000 residents were eligible to expunge marijuana convictions from their records. But only 23 people petitioned for that to happen.

“The way the legislation was written really kind of put it all on the people that had been convicted,” San Francisco District Attorney George Gascón told Reason. “It didn’t prohibit us from doing anything about it, but then it also didn’t spell out that you should.”

Technology Helping To Wipe Marijuana Convictions Off The Books

As Gascón explained, those able to take advantage of expungement were those already “well off” and “sophisticated” enough to jump through the necessary hurdles. But the San Francisco District Attorney believes the government should play a more active role in assisting “people that were harmed by decades of bad policy.” In other words, to make a kind of reparations.

That’s why Gascón recruited Silicon Valley to help with the process. He partnered with Evonne Silva, Code for America’s senior program director, and her team, which aims to clear a quarter million cannabis convictions in California before 2020. Silva’s team created an algorithm that combs through prior convictions and flags any cases possible for expungement. Then, the program automatically follows the paperwork on the individual’s behalf.

“The difference is, it on average takes an attorney 15 minutes to review one criminal record and evaluate eligibility and prepare the paperwork,” Silva told Reason. “We were able to process over 8,000 convictions in San Francisco in a matter of minutes.”

Other California jurisdictions plan to follow San Francisco’s lead and partner with Silva’s team, which is part of Code for America’s Clear My Record campaign. Los Angeles and San Jose are among the participating cities, but the program eventually aims to take its efforts nationwide.

“The technology is actually really simple. It also starts to shift the way in which people relate to their government, because now this is a service provided [by] government as opposed to government being seen as an obstacle,” Silva said.

Pot stocks are changing shape this week

The industry on pot stocks is undoubtedly changing. With such a large quantity of new investors coming into the industry the market can seem saturated at certain points. This is where alternative pot stocks to watch come in. These companies offer a new and different way to invest in marijuana stocks that other companies cannot. Much of this is due to the sheer size of the business and what they can achieve with that scale.

Additionally, some of the smaller pot stocks have had an easier time putting innovation through due to the lacking bureaucracy that bigger companies have to face. With this in mind, there are definitely pros and cons to each investing style and each part of the industry. All it comes down to is the personal preference of the investor and the amount of research that one does. Research is an investor number one tool and is made easier by finding certain pot stock info sites to rely on. With as much information on each company as possible, pot stock investors can avoid a lot of the surprises that they would run into without information at hand.

A Canadian Early-Stage Pot Stock

Stillcanna Inc. (STIL Stock Report) (SCNNF Stock Report) is one of the leading early-stage life sciences companies currently working on large scale CBD extraction throughout Europe. The company has stated that they have the potential to produce CBD in larger quantities and at a lower cost than most due to their proprietary intellectual property.

marijuana stocks to watch StillCanna logo

Recently, the company signed into an initial extraction contract in Europe that would effectively allow them to be the exclusive extractor for Dragonfly BioScicnes, LLC, a U.K. based CBD supplier. The company has also been working on a series of acquisitions which they hope can help to boost their share in the CBD market.

Recently, the company announced that they have signed into a definitive agreement to supply the company Sequoya Cannabis with hemp biomass from their farms located in Poland. In the agreement, Stillcanna would provide dried flowers which can then be used as biomass to produce various CBD extracts. The agreement, which is worth just under $1 million, represents only a few percent of Stillcanna’s biomass forecast for the 2019 year. For this reason, they remain a key pot stock to watch.

An Alternative Vertically Integrated Pot Stock

Acreage Holdings (ACRGF Stock Report) is a multistate dispensary operator currently showing some gains in the past month or so. The company has been working off of an acquisition from Canopy Growth that should see the two growing further into the future.

With a large cash and stock deal, it seems as though Acreage Holdings has quite a bit of growth left on the radar. The company has been waiting on some new legislation that would allow them to grow in a more effective way, but things do look bright in the present. All in all, they should continue to be watched moving into the near future.

How recreational pot could shift the landscape of marijuana use in Michigan

It's been almost a year since Michigan voters legalized recreational marijuana. Soon, the state will begin accepting applications for recreational pot businesses. That begs the question: what does all this mean for the existing medical marijuana industry in Michigan? 

Lisa Conine of Om of Medicine, a medical marijuana dispensary in Ann Arbor, predicts that “pretty much every dispensary” will apply for a recreational license.

That’s because Michigan will give medical marijuna dispensaries priority when it comes to recreational licensing for the next two years, a move that Conine says is meant to speed up the implementation process.

Conine expects that eligible existing marijuana dispensaries will be licensed and able to sell recreational weed to the general public early next year. But those who have medical marijuana cards will still have “some perks” even after anyone over 21 can legally purchase cannabis.

“There will be… a [lesser] amount of tax that [people with cards] will have to pay at the register being in the medical program versus the tax structure for adult use sales,” Conine explained. “We anticipate that they’ll see shorter lines, wait times, and more attention on them.”

The divide between Michigan’s medical and recreational marijuana programs means that patients and casual users who visit the same dispensary will be served separately. But Conine thinks that keeping those two businesses “under one roof” will help better educate people and normalize all kinds of cannabis use. 

Michigan's law on recreational marijuana also allows for “social use consumption spaces” in communities that approve them. Those are private businesses where people could consume cannabis outside of their own homes. Ann Arbor passed an ordinance last week that would allow for such cannabis consumption centers. 

“What better way to normalize [marijuana], something people have been using for thousands of years, than to have it be done in a communal way?” Conine said.

Conine understands that some Michiganders may be concerned about how the sale of recreational marijuana could impact the state. Gaps in research on the effects of cannabis, she argued, are due to its federal classification as a Schedule I drug. That’s why Conine suggests that those who are in favor of further research on marijuana should get in touch with their local representatives.

“If you’re frustrated and worried, then call up your senator and tell them that we need more research on cannabis,” Conine said. “Let’s deschedule cannabis from a Schedule I status so we can actually understand it in the way that we need to [in order] to fully utilize it and keep us all safe.”

The business of hemp in the state of Tennessee

Hemp, which is closely related to marijuana but has no psychoactive effect, has been legal to grow in Tennessee for a little more than five years through a closely monitored pilot program.

Hemp has been an important crop throughout the history of the United States. By the mid-1600s, hemp had become a vital part of the colonial economy and was used to produce rope, cloth, canvas, sacks and paper. In fact, the first drafts of the Declaration of Independence were penned on hemp paper.

Although industrial hemp contains very little of the hallucinogenic properties of marijuana -- production and processing declined after World War II with the passage of state and federal laws aimed at regulating the narcotic varieties of cannabis.

In December of 2018 another passage of the Farm Bill opened the door for even more growers and sellers.

"It deregulated hemp as a schedule one controlled substance,” explains attorney Stephanie Savage of Miller & Martin. “It created an interstate commerce exception which means states cannot prohibit the lawful transportation of hemp across state lines. It also directed the USDA to promulgate a hemp production plan where states can submits plans for approval or they can gave USDA licensure."

State records show that most licensed growers are hobbyists, farming only a few acres, but commercial-scale hemp farming is increasing quickly, in part because the industry is recruiting struggling tobacco farmers.

Sequatchie County’s Haygood Farms has been growing industrial hemp since the spring of 2018.

There are so many things you can do with this plant, it's remarkable,” says Llew Boyd. “And I think that this plant will become a commodity and replace things like cotton. For many different reasons, it's more economical to grow and it produces higher yields of textiles at a lower cost."

While many farmers focus on the textile portion of hemp production, others focus on the flower aspect of farmed hemp so it can be harvested for human consumption in CBD products. It can be up to the farmers across the state to choose which strands to grow.

“We mainly focus on the cannabinoids,” says Boyd. “We like to think that we're cannabinoid farmers instead of industrial hemp farmers."

CBD is one of many compounds, known as cannabinoids, in the cannabis plant. Hemp and marijuana come from the same plant, Cannabis sativa, but the two are very different. Hemp contains most of the CBD that people use medicinally. THC creates a mind-altering "high" when a person smokes it or uses it in cooking. This is because THC breaks down when heat is applied and introduce it into the body. CBD is different. Unlike THC, it is not psychoactive. This means that CBD does not change a person's state of mind when they use it. However, CBD does appear to produce significant changes in the body, and some research suggests that it has medical benefits.

Landrace Bioscience in Chattanooga is in the hemp business. Their mission is to manufacture hemp extracts to produce high-grade products containing cannabinoid profiles.

"There are actually over 400 chemical entities inside the hemp plant,” explains CEO John Demoss. “Those 400 entities need to be extracted and then made into different ingredients that the manufacturer of consumer products would ultimately used in creating their product."

None of these business opportunities would be available without the passage of the 2018 Farm Bill -- that de-scheduled hemp as a controlled substance.

"So what that really did was it allowed many more scientists and companies exploring potential benefits,” explains Demoss. “And it's been fascinating how many different clinical studies and pre-clinical studies and research projects generally have been advancing the understanding of the different molecules in the plant."

All cannabinoids, including CBD, produce effects in the body by attaching to certain receptors. The human body produces certain cannabinoids on its own. It also has two receptors for cannabinoids, called the CB1 receptors and CB2 receptors. CB1 receptors are present throughout the body, but many are in the brain. The CB1 receptors in the brain deal with coordination and movement, pain, emotions, and mood, thinking, appetite, and memories, and other functions. THC attaches to these receptors. CB2 receptors are more common in the immune system. They affect inflammation and pain.

Store owners like Elisha Millan at Grass Roots in downtown Chattanooga are using locally grown and produced hemp. Knowing where the product being sold on her shelf came from-- and that is has been tested is of the utmost importance.

"What you can expect from good, quality products and good quality businesses is that they will have all of their lab work to be able to hand to you immediately,” she says. “And they are going to be able to talk to you about what all of those numbers and all of those percentages mean."

With the realities of the opioid crisis coming to light, many of her clients come in with more questions and concerns than ever before.

"The majority of my customer base are people ages 50-65 who are new to cannabis, who have never used it before,” explains Millan. “But they are facing a surgery...whether they are having their first knee surgery or some procedures on their back, they're more concerned about the risk of becoming addicted to the pain medicine than they are of their actual pain level or about the surgery itself. And it's so surprising when you hear someone come in and say those things. They are sure about certain parts of their healthcare. They're not sure that their healthcare won't get them addicted to something."

It's a changing landscape for many of those associated with help production, but there are resources available to ensure compliance and success.

“This is an emerging industry the laws are still developing,” says attorney Stephanie Savage. “And so navigating the laws as they change can be very difficult. The Tennessee Department of Agriculture is doing everything that they can to help people understand the laws as they change. They have frequently asked questions on their website, and they have a lot of information about growing hemp in Tennessee, the application process...whether you're growing hemp or processing hemp, what steps are required."