Ah Warner: 25 Years On The Forefront Of Hemp & Cannabis Culture And Commerce

By David Rheins

WASHINGTON:  “It’s been a crazy twenty-five years,” Cannabis Basics founder Ah Warner tells me via Zoom this Sunday afternoon.  “The word that I really relate to in this journey is tenacity. I am tenacious, and without that I would not be around.”

Tenacious is an understatement.  Since 1994, Ah has been a true pioneer on the forefront of hemp and cannabis culture and commerce.  Her Cannabis Creations, established in 1994, predates the legendary Dr. Bronner by 5 years, selling hemp products “back when people still thought hemp was marijuana – I guess some people still do,” she told me.

Inspired by Jack Herer’s seminal book “The Emperor Wears No Clothes: Hemp and the Marijuana Conspiracy”, which she calls the Bible of Hemp, Ah’s journey began with a love of all things hemp, migrated to a passion for medical marijuana, and then in 2012 when Washington State legalized adult-use, Ah felt the recreational market left inadequate place for her hemp-centric and low THC body products, so she went mainstream.  She now vends her Hemp Basics line all over the country; while her Cannabis Basics products, which contain small amounts of THC, are sold in grocery stores and specialty retail only in Washington State.

Cannabis Basics is allowed by law to sell on mainstream retail shelves due to the landmark CHABA (Cannabis Health and Beauty Aids) law that Ah Warner along with activist Keri Boiter and then State Senator Jeanne Kohl-Welles passed in Washington in 2015. When I asked her what had changed in the five years since that CHABA legislation was passed, Ah explained “The law that is five years old now still only exists here in Washington State. No other state has replicated this.  No other state has said ‘if you have a little bit of marijuana in your product, and it is non-intoxicating and a topical it can be sold in grocery stores.’   What that means for me is that I have two lines – one is hemp seed oil and CBD, called Hemp Basics that is sold all over the country. And then my CHABA line, Cannabis Basics, which has the marijuana in it, sold here in Washington State in grocery stores. Now people don’t have to go to pot shops to get full-spectrum topicals. And that has changed a lot for people, especially the older generation who don’t want to go into a pot shop for a topical.”

 

By taking her hemp and cannabis brands mainstream, Ah has unlocked a whole new marketplace.  It has been necessary to “pivot, pivot, pivot” Ah notes, as the COVID-19 pandemic has resulted in the shutdown of her core buyers — massage therapists, and boutique retailers, resulting in a 50% loss of business.

But, always the innovator, Ah discovered a need in the marketplace, and has created a new product line to address it.  She believing that in the age of COVID-19 everyone that wears a mask is a hero, but notes that wearing a mask poses it’s own challenges.  “Unfortunately, masks are uncomfortable and may cause irritation, redness, and inflammation around the nose and mouth,” she noted. “Many masks are made from synthetic materials and dyes, and when combined with sweat and hot breath, can clog pores and create havoc on our sensitive facial skin. This new phenomenon is called maskne.”

“I really wanted to create something that would be helpful and comforting to our frontline workers and dedicated mask wearers in these challenging and stressful times so I formulated the Masked Hero Face Rescue System, harnessing the best that cannabis has to offer. The product blends organic hempseed oil, hemp hydrosols and cannabis extractions and infusions, with many other powerful botanicals, like tea tree, neroli and witch hazel. This skin care system is a three-step process: a cleanser to bathe and detoxify, a toner to balance and tighten and lastly, a moisturizer to nourish, hydrate and protect your face.”

What’s next for the energetic entrepreneur?  Ah will be introducing a new online retail store (Ah’s Cannabis Couch) and a new YouTube channel.  To learn more, watch the entire video interview, presented exclusively on Marijuana Channel One, part of the MJNews Network.

Justice Department Announces Global Resolution of Criminal and Civil Investigations with Opioid Manufacturer Purdue Pharma and Civil Settlement with Members of the Sackler Family

DISTRICT OF COLUMBIA: Today (10/21/2020), the Department of Justice announced a global resolution of its criminal and civil investigations into the opioid manufacturer Purdue Pharma LP (Purdue), and a civil resolution of its civil investigation into individual shareholders from the Sackler family.  The resolutions with Purdue are subject to the approval of the bankruptcy court.

“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen.  “With criminal guilty pleas, a federal settlement of more than $8 billion, and the dissolution of a company and repurposing its assets entirely for the public’s benefit, the resolution in today’s announcement re-affirms that the Department of Justice will not relent in its multi-pronged efforts to combat the opioids crisis.”

“Today’s resolution is the result of years of hard work by the FBI and its partners to combat the opioid crisis in the U.S.,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office.  “Purdue, through greed and violation of the law, prioritized money over the health and well-being of patients.  The FBI remains committed to holding companies accountable for their illegal and inexcusable activity and to seeking justice, on behalf of the victims, for those who contributed to the opioid crisis.”

“The opioid epidemic remains a significant public health challenge that impacts the lives of men and women across the country,” said Gary L. Cantrell Deputy Inspector General for Investigations at the U.S. Department of Health and Human Services’ Office of Inspector General.  “Unfortunately, Purdue’s reckless actions and violation of the law senselessly risked patients’ health and well-being.  With our law enforcement partners, we will continue to combat the opioid crisis, including holding the pharmaceutical industry and its executives accountable.”

“This resolution closes a particularly sad chapter in the ongoing battle against opioid addiction,” said Drug Enforcement Administration (DEA) Assistant Administrator Tim McDermott.  “Purdue Pharma actively thwarted the United States’ efforts to ensure compliance and prevent diversion.  The devastating ripple effect of Purdue’s actions left lives lost and others addicted.  DEA will continue to work tirelessly with our partners and the pharmaceutical industry to address the damage that has been done, and bring an end to this epidemic that has gripped the nation for far too long.”

Purdue Pharma has agreed to plead guilty in federal court in New Jersey to a three-count felony information charging it with one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute.  The criminal resolution includes the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture.  For the $2 billion forfeiture, the company will pay $225 million on the effective date of the bankruptcy, and, as further explained below, the department is willing to credit the value conferred by the company to State and local governments under the department’s anti-piling on and coordination policy.  Purdue has also agreed to a civil settlement in the amount of $2.8 billion to resolve its civil liability under the False Claims Act.  Separately, the Sackler family has agreed to pay $225 million in damages to resolve its civil False Claims Act liability.

The resolutions do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases.

While the global resolution with the company is subject to approval by the bankruptcy court in the Southern District of New York, one important condition in the resolution is that the company would cease to operate in its current form and would instead emerge from bankruptcy as a public benefit company (PBC) owned by a trust or similar entity designed for the benefit of the American public, to function entirely in the public interest.  Indeed, not only will the PBC endeavor to deliver legitimate prescription drugs in a manner as safe as possible, but it will aim to donate, or provide steep discounts for, life-saving overdose rescue drugs and medically assisted treatment medications to communities, and the proceeds of the trust will be directed toward State and local opioid abatement programs.  Based on the value that would be conferred to State and local governments through the PBC, the department is willing to credit up to $1.775 billion against the agreed $2 billion forfeiture amount.  The department looks forward to working with the creditor groups in the bankruptcy in charting the path forward for this PBC so that its public health goals can be best accomplished.

The Criminal Pleas

As part of the plea, Purdue will admit that from May 2007 through at least March 2017, Purdue conspired to defraud the United States by impeding the lawful function of the DEA by representing to the DEA that Purdue maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids and by reporting misleading information to the DEA to boost Purdue’s manufacturing quotas.  The misleading information comprised prescription data that included prescriptions written by doctors that Purdue had good reason to believe were engaged in diversion.  The conspiracy also involved aiding and abetting violations of the Food, Drug, and Cosmetic Act by facilitating the dispensing of its opioid products, including OxyContin, without a legitimate medical purpose, and thus without lawful prescriptions.

In addition, Purdue will admit to conspiring to violate the Federal Anti-Kickback Statute.  Between June 2009 and March 2017, Purdue made payments to two doctors through Purdue’s doctor speaker program to induce those doctors to write more prescriptions of Purdue’s opioid products.  Similarly, from approximately April 2016 through December 2016, Purdue made payments to Practice Fusion Inc., an electronic health records company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products – OxyContin, Butrans, and Hysingla.

The Civil Settlements

The department’s civil settlements resolve the United States’ claims as to both Purdue and its individual shareholders, members of the Sackler family.

The civil settlement with Purdue provides the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion.   This settlement resolves allegations that from 2010 to 2018, Purdue caused false claims to be submitted to federal health care programs, specifically Medicare, Medicaid, TRICARE, the Federal Employees Health Benefits Program, and the Indian Health Service.  The government alleged that Purdue promoted its opioid drugs to health care providers it knew were prescribing opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion.  For example, Purdue learned that one doctor was known by patients as “the Candyman” and was prescribing “crazy dosing of OxyContin,” yet Purdue had sales representatives meet with the doctor more than 300 times.  It also resolves the government’s allegations that Purdue engaged in three different kickback schemes to induce prescriptions of its opioids.  First, Purdue paid certain doctors ostensibly to provide educational talks to other health care professionals and serve as consultants, but in reality to induce them to prescribe more OxyContin.  Second, Purdue paid kickbacks to Practice Fusion, as described above.  Third, Purdue entered into contracts with certain specialty pharmacies to fill prescriptions for Purdue’s opioid drugs that other pharmacies had rejected as potentially lacking medical necessity.

Under a separate civil settlement, individual members of the Sackler family will pay the United States $225 million arising from the alleged conduct of Dr. Richard Sackler, David Sackler, Mortimer D.A. Sackler, Dr. Kathe Sackler, and Jonathan Sackler (the Named Sacklers).  This settlement resolves allegations that, in 2012, the Named Sacklers knew that the legitimate market for Purdue’s opioids had contracted.  Nevertheless, they requested that Purdue executives recapture lost sales and increase Purdue’s share of the opioid market.  The Named Sacklers then approved a new marketing program beginning in 2013 called “Evolve to Excellence,” through which Purdue sales representatives intensified their marketing of OxyContin to extreme, high-volume prescribers who were already writing “25 times as many OxyContin scripts” as their peers, causing health care providers to prescribe opioids for uses that were unsafe, ineffective, and medically unnecessary, and that often led to abuse and diversion.

The civil settlement also resolves the government’s allegations that from approximately 2008 to 2018, at the Named Sacklers’ request, Purdue transferred assets into Sackler family holding companies and trusts that were made to hinder future creditors, and/or were otherwise voidable as fraudulent transfers.

Today’s resolution does not resolve claims that states may have against Purdue or members of the Sackler family, nor does it impede the debtors’ ability to recover any fraudulent transfers.

Today’s announcement was made by Deputy Attorney General Jeffrey A. Rosen; Acting Assistant Attorney General of the Civil Division Jeffrey Clark; U.S. Attorney for the District of Vermont Christina Nolan; and First Assistant U.S. Attorney for the District of New Jersey Rachael Honig.  The criminal investigation was conducted by the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, the Consumer Protection Branch of the Department of Justice’s Civil Division, and the FBI’s Washington, D.C. and Newark Field Offices, with assistance by DEA.  The civil settlements were handled by the Fraud Section of the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the U.S. Attorney’s Offices for the Districts of New Jersey and Vermont, with assistance from the Department of Health and Human Services, Office of General Counsel and Office of Counsel to the Inspector General; the Defense Health Agency; and the Office of Personnel Management.  The Purdue bankruptcy matter is being handled by the U.S. Attorney’s Office for the Southern District of New York and the Civil Division’s Commercial Litigation Branch, Corporate/Finance Section.

Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only.  There has been no determination of liability in the civil matters.

WASHINGTON: Virtual Listen And Learn Forum Session #1: Rules Regarding Marijuana Definitions And Vapor Products

WASHINGTON:  The Washington State Liquor and Cannabis Board (WSLCB) is hosting two Listen and Learn forums to consider establishing new and amending existing sections of rule concerning marijuana definitions and marijuana vapor products. This is the first of two planned sessions. The full text of the draft conceptual rules are provided here.

For this session, we are discussing only draft conceptual rule sections 314-55-010(4) and (40) to implement House Bill 2826 pertaining to marijuana vapor products.

Please join us virtually on Tuesday, September 1, 2020, from 2:00 p.m. until 3:45 p.m. via WebEx.

Background
On March 25, 2020, HB 2826 passed the legislature in response to concerns related to marijuana vapor product and vapor related lung illnesses. The bill contained an emergency clause, and in its intent section, found that “recent reports of lung illnesses associated with vapor products” demanded “serious attention by the state in the interest of protecting public health and preventing youth access.

HB 2826 provides that the Board may adopt rules prohibiting any type of marijuana vapor product device, or prohibit the use of any type of additive, solvent, ingredient, or compound in the production and processing of marijuana products, including marijuana vapor products. However, before adopting either of these types of rules, the Board must have determined, following a consultation with the Department of Health (DOH), or any other authority the Board deems appropriate, the device, additive, solvent, ingredient, or compound may pose a risk to public health or youth access.

HB 2826 authorizes the Board to require marijuana processors to submit, under oath, to the Department of Health, a complete list of all constituent substances and the amount and sources of all constituent substances in each marijuana vapor product. HB 2826 also provides that Board may adopt rules prohibiting the use of a characterizing flavor in marijuana vapor products.

Rules are needed to implement the provisions of HB 2826, and to establish definitions for terms including, but not limited to “characterizing flavor,” botanical terpenes,” and others.

The Pre-proposal Statement of Inquiry filed by the Liquor and Cannabis Board may be found here.

Meeting Details
An agenda is attached. Please come prepared to offer feedback and suggestions regarding this rule section.

If you wish to participate virtually, we’d like to offer the following reminders:

  • Virtual participation will be structured to allow one speaker at a time through a hand-raising feature on WebEx.
  • If you experience difficulty with audio or visual elements of virtual participation, please be patient.

Please remember that we are still in the developmental phase of rulemaking, and there are not yet any proposed or final rules amendments. To help you prepare for this listen/learn/contribute forum, please review the guidance document prepared for this and future forums.

Questions? Contact Casey Schaufler at casey.schaufler@lcb.wa.gov

To join the WebEx meeting online:
https://watech.webex.com/watech/j.php?MTID=mee35a3ea86f3824ff52650252c672ee9

To join the WebEx meeting via audio conference only:

  • Toll Free: 1-855-929-3239
  • Toll: 415-655-0001
  • Access Code: 133 951 6990

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