Washington state regulators shut down El Rey de La Kush, a Riverside-based cannabis grower, for allegedly sending marijuana across state borders.
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October 9, 2020
These 4 states are voting to legalize and tax marijuana sales
Things may go green in four states this fall, as voters will decide on legalizing and taxing marijuana. Arizona, Montana, New Jersey and South Dakota all have measures up for a vote to legalize and levy recreational marijuana. Thus far, 11 states have legalized recreational pot: Alaska, California, Colorado, Illinois, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont and Washington state. Levying legal weed is looking attractive at a time when states are anxious to boost their coffers. Jurisdictions often slap an excise tax, along with a state general sales tax, on pot sales. Just don’t count on legalized marijuana to singlehandedly save state budgets. That’s because the amount of revenue they can collect will depend on the structure of the tax and the ease of obtaining a license for growing and selling the product, according to Ulrik Boesen, senior policy analyst at the Tax Foundation. “You can have a good tax system, but if your regulatory system isn’t effective, you won’t see the revenue,” he said. Boesen pointed to Oregon as an example of a state that’s been relatively successful at legalizing and levying marijuana. “Oregon has a low tax rate and a flexible licensing system, so there are a lot of growers and retailers,” Boesen said. The Beaver State applies a 17% excise tax on the retail price of pot, generating $102 million in tax revenue during the 2019 fiscal year.
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It’s October, which means for outdoor cannabis cultivators in Canada, it’s also harvest season. Nearly 50 firms across the country are licensed to grow outdoors, but just one can say its first harvest has been in the works for nearly seven years. Despite the perception of Canada as a cold and snowy landscape, cannabis has been grown outdoors here for generations, long before prohibition was lifted in 2018. In Rock Creek, a small town in British Columbia’s Okanagan region, an area adored for its long, dry summers and endless rows of wineries and fruit orchards, a portion of a sprawling 2,200-acre ranch once dedicated to ginseng and cherries is now filled with rows upon rows of cannabis and hemp. It’s quite the sight for SpeakEasy founder Marc Geen, whose family has grown fruit trees in the region for 120 years. His father, Merv, former chairman of the board at food and beverage manufacturer SunRype, was on board with the idea when Marc and brother Pat approached him and suggested taking up a new crop might be a good business move after they had seen how private medical growers in the area had taken advantage of its fertile soil and arid climate...In 2013, shortly after federal regulations were introduced to allow for the commercial cultivation of medical cannabis but long before federal politicians had even uttered the word ‘legalization,’ the Geens founded SpeakEasy Cannabis Co. with the goal of growing cannabis outdoors, and their wait began. At this time, no provisions for outdoor cultivation were in place, and the first outdoor license wouldn’t be awarded until 2019.
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Five justice organizations — ACLU of Vermont, Vermonters for Criminal Justice Reform, Middlebury Showing Up for Racial Justice, Women’s Justice and Freedom Initiative, and the Vermont Coalition to Regulate Marijuana — issued a statement today urging Gov. Phil Scott (R) to sign S. 234 and S. 54 into law. It notes, “Taken together, these bills will make huge strides towards addressing the racist legacy of cannabis prohibition and disparate enforcement of our current cannabis laws.” The coalition quotes a Friday statement from former state Representative Kiah Morris and her organization, Rights & Democracy, calling S. 54, “one of the most comprehensive and forward thinking attempts, addressing and repairing the historical harms of the war on drugs, and the devastating impacts on our nation.” They urge Gov.Scott to sign this bill into law, and, as the bill is implemented, ensure that the promises of racial justice are given full effect. S. 234 would automatically expunge more than 10,000 low-level cannabis convictions and decriminalize an amount modestly exceeding the possession limit. S. 54 would legalize, regulate, and tax cannabis sales while prioritizing licensing of small-scale cultivators and minority-owned businesses and women-owned businesses. An overwhelming majority of Vermonters support this legislation. A poll commissioned by the Marijuana Policy Project in February 2020 found that 76 percent of Vermont residents support allowing adults 21 and over to purchase cannabis from regulated, tax-paying small businesses.Gov. Scott has until Wednesday to sign or veto S. 54, or it would become law without his signature. S. 234 has passed the legislature, but has not yet been transmitted to the governor’s desk. Full Coalition of Justice Organizations’ Statement on S.234 and S.54 We urge Gov. Scott to sign the package of cannabis policy reform bills on his desk — S.234 and S. 54 — into law. Taken together, these bills will make huge strides towards addressing the racist legacy of cannabis prohibition and disparate enforcement of our current cannabis laws. S. 234 would expunge the misdemeanor cannabis convictions of tens of thousands of Vermonters and free them from the devastating collateral consequences of those convictions in employment, housing, and social services. S. 54 would create a system of taxed and regulated sales of cannabis that will promote the interests of individuals who have been disproportionately harmed by cannabis prohibition, create economic opportunity, and promote consumer safety. We share the concerns and goals of advocates urging lawmakers to advance further racial justice initiatives when developing the tax and regulate system but disagree with the call to veto the bill and start over. That would be a big setback for racial justice. As former State Rep. Kiah Morris recently stated, “S. 54 is a bill that will change the national conversation around the legalization of cannabis and our entry into a regulated market. It is one of the most comprehensive and forward thinking attempts, addressing and repairing the historical harms of the war on drugs, and the devastating impacts on our nation.” We join Rep. Morris and Rights and Democracy in asking Gov. Scott to sign this bill into law, and, as the bill is implemented, continue to engage the communities most harmed by cannabis prohibition to ensure that the promises of racial justice are given full effect.
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Baltimore County Council delayed a vote on whether to enact restrictions on local hemp farms to allow officials more time to consider the concerns reported by farmers and the residents surrounding the fields. Hemp is a strain of cannabis that looks and smells much like the plant that’s smoked recreationally and medicinally. But hemp contains only a very small amount of tetrahydrocannabinol, or THC, which causes the psychoactive effects associated with cannabis. The plant mostly contains cannabidiol oil, or CBD, which is used in pills, creams and consumable products. CBD’s popularity is growing because scientists discovered it stimulates a reaction in the body that reduces pain and inflammation. Hemp fields release an odor from late summer until early November, when the plant is harvested, and residents living near one of the county’s five farms have voiced health concerns over the stench. Baltimore County Councilman Wade Kach responded to complaints by sponsoring a bill that would prohibit hemp farms within 2,000 feet of a residential property. The Cockeysville Republican’s proposal would also require harvesting facilities to be set back at least 500 feet from the farm’s property line. Hemp farms would be prohibited from operating within 2 miles of another hemp farm. The bill would also require prospective hemp farmers to obtain a special exception and public hearing in the county, on top of the existing state permit and inspection to grow hemp. Farmers and agricultural advocates opposed the bill because they feared it would “virtually eliminate” hemp production on small farms. The opponents also said it would interfere with local and state right-to-farm laws. The council voted unanimously Monday night to delay the vote on the bill to Nov. 2. “There’s no doubt in my mind that this situation is leaving people uncomfortable, but my major concern is, ‘Is it putting anybody’s health at risk?’ and I don’t have an answer to that question,” Kach said. Kach said the county’s attorney is worried the county could face lawsuits if the bill is enacted as written. Kach also said there are farms in the county that are surrounded by neighbors who have never complained about odors. He acknowledged there could be different strains of cannabis that may not put out strong odors that are being grown at other farms in the county. “The question is how close are these residences where there are no complaints and the answer I got, in one case, is the nearest residence is 500 feet,” Kach said.
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October 7, 2020
Illinois sees another record month for recreational marijuana sales amid COVID-19 pandemic
Recreational pot sales in Illinois have generated quit a bit of green for the states bottom line. According to the Illinois Department of Financial and Professional Regulation, the recreational marijuana industry remains a hot commodity in the midst of the COVID-19 pandemic, as statewide sales surpassed $67.6 million in September. Officials said adult-use cannabis sales in August climbed nearly 5.8 percent over July, when the state had nearly $64 million in sales. Marijuana dispensaries were deemed essential businesses in Illinois during the pandemic, allowing them to remain open during a time when most businesses were forced to close. So far this year, recreational marijuana dispensaries in Illinois have sold nearly 9.5 million marijuana products worth a total of more than $431 million.
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October 6, 2020
Should N.J. Legalize Marijuana? The Voters Will Decide
For two years, New Jersey lawmakers had failed to mobilize enough support to pass a bill to fully legalize marijuana. Instead, they agreed in December to put the question directly to voters: “Do you approve amending the Constitution to legalize a controlled form of marijuana called ‘cannabis’?” Then March roared in, and the world turned upside down. The coronavirus took a firm hold in the United States and Black Lives Matter protesters filled streets from coast to coast. More than 16,000 New Jersey residents have since died from the virus. Unemployment has soared. Ballots for November’s election, which is being conducted almost entirely by mail, have already begun to arrive at voters’ homes. And a dominant conversation in the nation now centers on race and policing, giving a core argument among supporters of legalization new potency in a state where Black residents are more than three times as likely as white residents to be charged with marijuana possession. “The big thing that’s changed,” said Axel Owen, campaign manager for NJ Can 2020, a coalition that supports legalization, “is people are having a discussion about the role of policing.” A Monmouth University poll in April found that 64 percent of New Jersey voters supported legalizing the possession of marijuana for personal use; 61 percent of respondents said they intended to vote “yes” on November’s ballot question. The use of marijuana for approved medical conditions is legal in 33 states, including New Jersey. In 2012, Colorado and Washington became the first states to make it legal to smoke marijuana recreationally, without a medical justification. Nine additional states and Washington, D.C., have since legalized adult use of marijuana, and New Jersey is one of four states where voters will be asked in November if they support legalizing recreational use of the drug. Arizona, Montana and South Dakota have similar ballot initiatives. If voters approve all four, one in three Americans will live in a state or city where recreational use of marijuana is legal, even before federal legislation advances. “We’ve seen this complete evolution in thinking,” said Steven Hawkins, executive director of the Marijuana Policy Project, a nonprofit that supports legalization. “New Jersey is one of the bluest states in the nation and South Dakota is one of the reddest — and they both have ballot initiatives in November.” Opponents say they fear the long-term effects of the drug, its potent levels of THC — the main psychoactive ingredient in marijuana — and the potential glut of licensed distributors in struggling cities. Still, they are facing strong headwinds at a time when the nation is focused on police killings of Black residents that have shined a spotlight on systemic bias. What was once an argument centered mainly on the bottom-line benefits of taxing and regulating a product widely in use has been reframed as one with equity — and the disproportionate rates of arrest in minority neighborhoods — at its heart. If approved, New Jersey — densely populated and bordered by states that have not legalized marijuana, New York and Pennsylvania — is expected to quickly become one of the biggest new cannabis markets in the country. Gov. Philip D. Murphy, a Democrat and a proponent of legalization, argues that expanding the industry is a smart way to help the state rebound from the long-term financial devastation of the pandemic. “You have the bridge, two tunnels,” said Joseph Casper, the manager of a medical marijuana dispensary in Montclair, N.J., about the state’s proximity to New York. “People are just going to be shooting back and forth all day.” Curaleaf, the world’s largest cannabis company, operates a medicinal marijuana dispensary in South Jersey and was just licensed to open a second outlet in the state. Joe Bayern, the company’s president, says Curaleaf is building a 100,000-square-foot grow facility in Winslow, N.J., with an eye toward being able to quickly pivot into the adult-use market if the ballot initiative passes.
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Investors who won a chance for a license to sell recreational marijuana in Illinois have filed a lawsuit asserting it’s illegal to give other applicants a second chance. The legal action sets up a potential court battle over when to hold a lottery to award 75 new retail licenses. Three finalists filed a petition asking the Illinois Supreme Court to order that the licenses be awarded without recent changes to the application process they say were made because of “political expediency.” Last month, Gov. J.B. Pritzker announced new procedures that would allow applicants to correct any deficiencies in their applications and get rescored for a second chance at qualifying for the license lottery. The lawsuit was filed Monday, as the Tribune first reported, by SB IL, Vertical Management and GRI Holdings IL, all limited liability corporations that received perfect scores on their applications. They were among 21 businesses that qualified in September for the license lottery. They are suing Pritzker and officials from the Illinois Department of Financial and Professional Regulation, which oversees the licensing of cannabis dispensaries. Pritzker changed the application process after applicants complained of inconsistent scoring and handling of applications. The governor allowed applicants to be notified of any deficiencies in their applications and given 10 days to correct any problems. Those applications are to be scored again to see who else might qualify for the lottery. David Scott, owner of People Cab Co. and People Loan Club in Bellwood, said his group Vertical Management earned its score and deserves a shot at the lottery without potentially hundreds of more contestants. In any competition, he said, players must follow the rules. Even if a referee makes a bad call in a basketball game, he said, once the game is over, there are no do-overs. Winning applicants also took exception to the characterization that they are not legitimate social equity applicants because some have politically connected or wealthy white co-owners, or are already involved in the cannabis industry. GRI’s investment group, for instance, includes restaurant owner Phil Stefani, while another firm, EHR Holdings, includes former Chicago police Superintendent Terry Hillard, who is African American and helped enforce the laws that legalization seeks to reverse. The law did not include preferences for any racial group, out of concern that would be discriminatory. But all of the finalists were given a preference as social equity applicants, meaning most lived in designated poorer areas with many marijuana arrests and convictions, or had low-level marijuana convictions themselves or in their family -- which state officials said in effect favored minority applicants. Of the 21 applicants, state officials said, 13 are majority owned and controlled by people of color and 17 have at least one owner who is a person of color. Scott said his group has five African Americans out of eight owners. “If you want minorities involved, you got 'em,” Scott said.
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October 6, 2020
Maryland’s hemp industry faces growing pains as more farmers try to cash in on the demand
Maryland’s budding hemp industry is growing despite concerns from some Baltimore County residents about living near a crop that was outlawed for several decades. Hemp is a strain of cannabis that looks and smells much like the plant that’s smoked recreationally and medicinally. But hemp contains only a very small amount of tetrahydrocannabinol, or THC, which causes the psychoactive effects associated with cannabis. Instead, hemp mostly contains cannabidiol oil, or CBD, which is used in pills, creams and consumable products. CBD’s popularity is growing because scientists discovered it stimulates a reaction in the body that reduces pain and inflammation, said Darren O’Brien, a hemp farmer in Baltimore County. “People who are growing hemp are not hippies,” O’Brien said. "It’s helping tens of thousands of people.” O’Brien manages the Hemp Hills Farm and Family Care CBD shop, but he stressed hemp isn’t just about CBD. The plant has been “a major crop” in Canada and Europe for decades, he said, because its fibers can be used to produce clothing, shoes or paper, among other things. Maryland has seen the industry blossom since starting a pilot program in 2018. There are nearly 100 farms statewide — a roughly 50% increase this past year. And new state regulations for the industry will take effect Nov. 1. But as more farmers view the crop as a gateway to the lucrative CBD market, some neighbors are fuming. And at least one county government — Baltimore County — is considering restrictions on the crop. “The people that have contacted me have said that they’ve had problems with some of their children who have respiratory issues [that] are made more complicated by hemp. People who have asthma find that their conditions are more agitated from the hemp,” said Baltimore County Councilman Wade Kach, who has sponsored a bill to limit hemp farms. The council held a hearing Tuesday on Kach’s proposed legislation, and Kach also held a virtual meeting Thursday for both sides to discuss the issue. The council is scheduled to vote on the bill Monday night, though Kach has said he may seek to postpone a vote. One of Baltimore County’s five hemp farms is located off Broadway Road, just north of Stevenson, and it’s surrounded by suburban homes. Vince Piccinini, the farmer whose name is listed on the state registration for the Broadway Road hemp farm, could not be reached for comment. While the land has long been used for farming, Kach aide Ryan Fried said a barrage of complaints followed Piccinini’s decision to grow hemp there. Like any other hemp farm, its fields release an odor from late summer until early November when the plant is harvested. Residents have voiced health concerns over the stench. Kach’s bill would prohibit hemp farms within 2,000 feet of a residential property. The Cockeysville Republican’s proposal would also require harvesting facilities to be set back at least 500 feet from the farm’s property line and hemp farms would be prohibited from operating within 2 miles of another hemp farm. The county council is expected to vote on the bill this week and, if approved, it would take effect Oct. 19. Residents from the Sparks and Lutherville-Timonium communities testified in support of the proposal last week. They said approximately 32 homes are within 1,000 feet of the Piccinini farm, which is listed in the state as GPS Nurseries. “This is frightening," Lutherville resident Michele Pearlman said. “Council, you have our health in your hands. Please protect us by passing this bill.” Another resident, Richard Sciacca, reiterated that neither the U.S. Food and Drug Administration nor Maryland allows CBD to be added to edible products, even though it’s happening. Dr. Jefferson Lee of Lutherville said the FDA says on its website that pregnant women and breastfeeding mothers shouldn’t be exposed to cannabis or cannabis-derived products. “It is incredibly disturbing, the idea of my young children becoming guinea pigs for future research on long-term health hazards from cannabis exposure at home," Lee said. But Kevin Atticks of the Maryland Hemp Coalition said there are no studies showing negative health effects from inhaling hemp. "You may not like the smell, but it’s not dangerous,” Atticks said. Right now, the hemp dispute appears to be limited to Baltimore County. But agriculture advocates are worried about the county council bill’s impact on farmers.
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