September 22, 2020
Texas Ban On Smokable Hemp Lifted Until 2021, Judge Rules
A Texas ban on smokable hemp products hit another roadblock in court last week when a state judge barred officials from enforcing the prohibition until an industry challenge can be heard in court. A group of four hemp producers sued the state last month over the ban, which began when lawmakers passed a hemp legalization bill last year that explicitly forbade the production of products intended for smoking or vaporization. State health authorities extended its reach earlier this year to prohibit the sale and distribution of such products made outside Texas, a move the hemp companies claim was an unconstitutional overreach of their authorities. In a ruling issued Thursday, Travis County Judge Lora Livingston wrote that the hemp companies may have a point. Writing that the plaintiffs “have demonstrated a probable right to relief,” Livingston granted a temporary injunction that effectively voids the ban on production, distribution and sale of the products until the conclusion of a trial set to begin in February. Livingston had previously issued a temporary restraining order in the case last month that had a similar but shorter effect, preventing the statefrom enforcing the ban for a matter of weeks. The new ruling freezes the ban for at least four months, and potentially longer. Opponents of the ban said that while the issue is far from over, Livingston’s recent decisions are a sign the challenge could ultimately succeed. “So far, the rulings relating to this lawsuit are very encouraging,” said Heather Fazio, director of Texans for Responsible Marijuana Policy, which opposes the ban and has organized hundreds of supporters to submit comments to regulators. “Advocates in Texas have remained vigilant, with both legislative engagement and regulatory oversight,” Fazio said in an email to Marijuana Moment. “Now, Texas businesses are challenging our state’s poorly designed policies in the courts. And they’re winning!” Plaintiffs are challenging both the legislature’s initial ban on production and processing of smokable hemp as well as the Department of State Health Services (DSHS) added ban on distribution and sale, which they claim violate the state constitution’s protections for economic freedom. They also maintain that DSHS lacked the authority to extend the production ban to retail sales.
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September 22, 2020
New Jersey in Focus After Congress Delays Bill: Cannabis Weekly
With a major piece of pro-cannabis legislation now likely to be heard after the U.S. presidential election, the industry is turning its attention to a new hope: a domino effect in the Northeast. The Marijuana Opportunity Reinvestment and Expungement Act, known as the MORE Act, won’t go to the U.S. House this week, and is instead expected to go to a vote sometime in the lame-duck session between the Nov. 3 election and inauguration on Jan. 20. The bill would take marijuana off the list of controlled substances and expunge prior convictions for it. While the initiative has gained traction -- it has more than 100 co-sponsors, including a few Republicans -- it has become a victim of the electoral season. But hopes remain high that major regulatory changes are coming within the next few years. “The electability of cannabis is clear –- Americans overwhelmingly support this issue and members of Congress shouldn’t shy away from it,” said David Culver, a vice president at Canopy Growth Corp. Speaking during an online discussion last week on cannabis, Culver said that Democrats were concerned about the optics of reaching a decision on cannabis legislation before Covid-19 relief is approved. He downplayed the concerns, citing the industry’s potential to create jobs and give states a much-needed source of tax revenue. Erik Huey, a government affairs executive at lobbying firm Platinum Advisors, who spoke alongside Culver, added that politicians have a “moral imperative” to act, since studies show that Black people are disproportionately arrested for marijuana-related offenses. Regardless of timing, the initiative’s main obstacle would be a Republican-controlled Senate, so the industry is watching to see if Democrats can wrest control in November. Democrats have a majority in the lower house that they are expected to maintain in the next session. Still, the bill isn’t the only way to move legalization forward. Since the pandemic, there’s more talk about a domino effect in the Northeast. It could go like this, according to investors and cannabis executives: If New Jersey passes an initiative to legalize recreational use this November, then Connecticut, New York, Pennsylvania and Rhode Island could follow shortly after. That’s because states have an added incentive amid the pandemic to prevent cannabis users from crossing state lines and potentially spreading Covid-19. Recreational use in New Jersey “would serve as more than enough of a catalyst” for the domino effect, Cowen & Co. cannabis analyst Vivien Azer said in a research note last week. Nearby states could legalize over a period of around two years, she said. If this were to happen, it would put almost half of the U.S. population in states where recreational use is legal. As a result, this would boost companies’ sales and lift the U.S. market for cannabis by roughly $6 billion to a total of $40 billion by 2025, Azer said. Multi-state operators like Green Thumb Industries Inc., Curaleaf Holdings Inc. and Cresco Labs Inc. would be big beneficiaries, she said.The MORE Act is still likely to be approved by the House this year, Azer said in a Sept. 18 research note, calling support of legalization the “safe position” for Democrats -- a major turnaround from 4 years ago. While legalization would ultimately be good news for investors and companies, there’s a catch, said Matt Hawkins, a founder at cannabis investment firm Entourage Effect Capital. If legalization moves too fast while many cannabis companies remain small, he said, big pharmaceutical or tobacco companies are more likely to deploy their sizable resources to build their own businesses and take over the sector. If that were to happen, it could decimate the industry, he said in a phone interview. A more methodical march toward legalization, meanwhile, could let companies grow stronger. “In a perfect world, it would be best for a lot of the companies out there to get larger so they’re more attractive acquisition targets,” he said.
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September 22, 2020
Trump And The 2018 Farm Bill: Where Does It Leave Hemp Farmers?
Until the enactment of the Marihuana Tax Act of 1937, industrial hemp was a significant agricultural crop in the United States. Clothing and flags were made from it, it was a nutrient-dense source of grain, and Henry Ford built a car out of hemp that was fueled by it. That year federal law stopped commercial cultivation of cannabis, which included industrial varieties of the plant. Thus began the era of cannabis prohibition in the United States. While many associate prohibition with the outlawing of psychoactive marijuana, the burgeoning momentum of 20th Century American hemp farmers was equally disrupted. Yet reputable publications touted its uses and benefits. In 1937, “Popular Mechanics” described it as the new billion-dollar cash crop (back then, a billion dollars went a lot further than today). “Mechanical “Engineering” called hemp the “most profitable and desirable crop that can be grown.” With this in mind, I can’t help but ask - did we derail social progress by ending marijuana usage in the U.S.? Since the roots of cannabis prohibition were based in racism, xenophobia, elitism, and corporate protectionism – all issues we’re still reckoning with today – the answer seems fairly obvious. Spin forward to the 2014 Farm Bill, when industrial hemp was defined separately from “marihuana’” under federal law. The most sweeping cannabis reform in American history was spearheaded by deep conservatives, such as Senate Majority Leader Mitch McConnell. Go figure. It was then in 2018, under the Trump administration that industrial hemp’s legality was further cemented with the enactment of the 2018 Farm Bill. Well before that, in November 2012, Colorado became the first state to reintroduce hemp cultivation to the American farmer, offering commercial industrial hemp legalization, regulation, and production. Colorado’s Department of Agriculture (CDA) introduced rules and oversight of the industrial hemp industry. In 2013, Colorado’s Ryan Loflin became the first farmer in over 50 years to cultivate a major commercial hemp crop in the United States.
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September 22, 2020
South Dakotans to vote on marijuana legalization and sports betting
All eyes are on the race between President Trump and former Vice President Joe Biden, but South Dakotans have much more at stake on the ballot than just the presidential race. Marijuana has remained a big conversation all over America with several states legalizing it in recent years. In November, South Dakota voters will decide whether they want it legal. There are two proposals. Amendment A would legalize, regulate, and tax marijuana and require the Legislature to pass laws regarding hemp as well as laws ensuring access to marijuana for medical use. Supporters said it would only be for adults 21 and older and would bring new revenue to the state, create new jobs, and would reduce arrests and criminal prosecutions. Opponents argue that marijuana is highly addictive and can have long-term health consequences. In the ballot, The South Dakota State Medical Association said, “Marijuana will create a steep cost for society and taxpayers that far outweighs its tax revenues.” Initiated Measure 26 focuses on legalizing medical marijuana. Supporters said it will help people with health conditions. The state medical association argues that the drug carries safety risks and claims it’s not a “legitimate medication.” Amendment B wants you to bet on the future of Deadwood. Right now, only certain games are legal in Deadwood, including card games, roulette, and slot machines. If passed, it would authorize the Legislature to allow you to bet on sporting events in the Old West town. The amendment’s sponsor said it would boost tourism and add new tax revenue to help local cities, schools, and the state. South Dakota’s Speaker of the House is arguing against the amendment. He said sports betting would be a “stumbling block” for people overwhelmed by gambling addiction. He said, “The few dollars that would come from sports betting pales in comparison to the damage it causes.”
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September 21, 2020
House vote on marijuana legalization bill postponed after backlash from moderate lawmakers
Democrats in the House of Representatives postponed a planned vote next week on marijuana legalization following a backlash from moderate Democrats. The legislation, the MORE Act, would legalize marijuana at the federal level and expunge some marijuana-related criminal records, though it left the decision on the sale of marijuana up to the states. According to a senior Democratic aide, lawmakers in tough re-election contests wanted the House to first pass COVID-19 relief before acting on marijuana legalization.
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September 21, 2020
Medical cannabis companies cleared for London stock market
Medicinal cannabis companies have been cleared by the UK’s financial regulator to float on the London Stock Exchange but firms that sell marijuana to recreational users will still be banned. The Financial Conduct Authority said businesses that grow and sell recreational cannabis, even in countries such as Canada where it is legal, cannot list in London because of the Proceeds of Crime Act. Income from the sale of cannabis and cannabis oil outside the UK could constitute “criminal property” under the act, because it covers conduct abroad that would constitute a crime if it happened in the UK. But the regulator said UK medical cannabis firms could float in London, as could overseas firms, although they would have to satisfy the regulator that they should be allowed to do so because of the more nuanced legal position. The rules for overseas firms are complicated by the UK’s restrictive regulatory environment for medicinal cannabis, legalised in 2018. Cannabis growers require a licence from the Home Office, while any imports of the drug require patients to get a prescription first. The FCA said regulations, which limit the extent to which medicinal cannabis is being used in the UK, meant overseas firms could not automatically be granted the right to list in London, even if they only sold a medical product. While firms might have a licence to sell in other countries, that did not mean they would be able to secure the same permissions from the Home Office, the regulator said. “For medicinal cannabis and cannabis oil companies with overseas activities, the company will need to satisfy us that their activities would be legal if carried out in the UK,” the FCA said. “We will also need to understand the legal basis of the company’s overseas activities, for example the nature of the local licensing and the licences the company holds.” Despite the complex position for overseas producers, the fast-growing cannabis industry is expected to celebrate the clarity from the markets regulator, which will help firms tap funding from new investors. Roby Zomer, co-founder and managing director of the pharmaceuticals firm MGC, said: “MGC started the process of looking to list on the London markets over a year ago. During that time we have struggled with the pace of the process but have continued to push forward, with a view to being one of the first UK-listed medical cannabis companies.
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September 21, 2020
Hemp Farmers Now Eligible For USDA Coronavirus Relief Program
The U.S. Department of Agriculture (USDA) announced on Friday that it is expanding its coronavirus relief program for farmers—and this time around, hemp cultivators are eligible for benefits. In May, USDA said it would be making $19 billion available for agriculture producers to assist them amid the pandemic. But it excluded hemp and several other crops, stating that they don’t qualify because they didn’t experience a five percent or greater price decline from January to April.rop’s legalization, highlighted the policy change.
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September 18, 2020
Gov. Tom Wolf, Lt. Gov. John Fetterman make another push for legalizing recreational marijuana in Pennsylvania
Pennsylvania Gov. Tom Wolf and Lt. Gov. John Fetterman are making another push for the legalization of recreational marijuana in the state. The governor said Wednesday that Pennsylvania needs the money that taxing adult-use cannabis would bring in. "I thought last year was the right time to do it. It's still the right time to do it and, if anything, there's even more urgency now because of where we are with the COVID-19 pandemic.
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September 18, 2020
Redwood City welcomes cannabis stores
Retail cannabis businesses are closer to being welcomed within Redwood City limits as planning commissioners approved zoning guidelines permitting storefronts in various areas of the city. After a nearly two-year-process to regulate how walk-in cannabis stores would be allowed to open in Redwood City, the Planning Commission voted to recommend the City Council approve zoning amendments permitting the business to open, by right, in zoning districts where general retail is allowed.
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September 18, 2020
Vermont Bill To Legalize Marijuana Sales One Step Away From Governor’s Desk After House Vote
The Vermont House of Representatives on Thursday approved a finalized version of a bill to legalize, tax and regulate marijuana sales in the state. While both the House and Senate had previously passed the bill, S. 54, a bicameral conference committee had to be convened to resolve differences between their respective versions. And following a series of meetings and compromises, negotiators on the panel reached a deal on Tuesday, sending the final proposal back to the floor of both chambers for final consent. The House approved the compromise legislation in a 92-56 vote.
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