July 29, 2020
Wyden, Merkley press feds to improve hemp farming rules
Sens. Ron Wyden and Jeff Merkley, D-Ore., asked federal officials Wednesday to change costly and confusing rules for farmers in Oregon and nationwide that cover the growing and testing of hemp.
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TOP THINGS TO KNOW: The Democratic National Committee’s platform committee voted 106 to 50 to reject an amendment to endorse legalizing marijuana. “I’m imploring all of you to approach this with an open mind and heart. Do something big here. Take one small but meaningful step toward changing the course of history. If my black life matters to you, you will consider this amendment. Navy Secretary Kenneth J. Braithwaite issued a memo banning sailors and marines from using hemp soaps, shampoos and lotions as part of a broader prohibition on legal hemp and CBD products. “Substance misuse by members of the Armed Forces is incompatible with military standards of good order and discipline, performance, and operational readiness. It is the goal of the Department of the Navy (DON) to eliminate substance abuse.” Washington, D.C. psychedelics activists observed officials count enough valid signatures to put their decriminalization initiative on the November ballot. The Board of Elections is expected to formally certify the measure at a meeting next week.
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More than two-thirds of New Jersey voters support adult use cannabis, according to the first in a series of polls conducted by Brach Eichler LLC’s cannabis law practice. While 68 percent said they would vote in favor of the November ballot public question, 26 percent said they would oppose it, and 6 percent said they were unsure. Adult use cannabis legalization has support across political lines, the Brach Eichler Cannabis Poll found. Democrats supported it at 78 percent with 19 percent opposing; Republicans had 57 percent in favor of legalization, compared to 39 percent opposed; and Independents responded with 63 percent supporting and 27 percent opposed. More than half of the respondents – 57 percent – said they were not cannabis users and 17 percent said they were; 14 percent said they had used previously, and 9 percent said they’d consider trying it if it was legalized. “As New Jersey voters consider creating a new multi-billion-dollar industry in the heart of the largest metropolitan area in the country, we believe it is important to assess the marketplace attitudes and public sentiments about cannabis to help us guide both our clients and regulators,” said Charles Gormally, co-chair of the cannabis law practice at the firm, in a prepared statement.
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Following months of debate and planning, the Royal Oak City Commission is poised to decide on where marijuana businesses may locate in that city. Officials are expected to take up the matter during a Zoom meeting Monday night in which there will be a second reading of a proposed ordinance for commercial marijuana establishments. Residents can call in and leave voice recordings of their support or concerns between 4-6 p.m. at (248) 246-3411. They also can monitor the meeting on their local cable TV channel or on the city’s website. Recreational marijuana sales have been a controversial topic in the city for over a year, especially among critics who feel such establishments, despite being legal, are adult businesses that should not be permitted near schools, parks or residential neighborhoods. Voters in November 2018 approved recreational sales by a 56% to 44% margin. Potential eligible areas that have not raised concerns are in a 1-mile by a 1 1/2-mile industrial area in the city’s north end, north of 14 Mile Road and east of Woodward Avenue to Delemere. “I object to any of the businesses being considered near residential areas,” said Councilman Randy LeVasseur, who feels there should be at least a 150-foot buffer area from neighborhoods, along with the 1,000-foot distance from churches, schools or parks used under the adult-business zoning ordinance. LeVasseur had requested the city Planning Department draw up a map showing areas that meet that criteria but was told it could not be put on the agenda without the request of two other councilmembers. “I have never heard that before,” said LeVasseur, acknowledging he could only find support from Councilmember Kim Gibbs. Earlier this month, the commission voted to permit four still-to-be-determined locations — two in the industrial area and two on Woodward Avenue — for marijuana sales. City planners said the city could conceivably have up to 18 businesses, including along Woodward Avenue, between 10 Mile and 14 Mile roads, in the future.
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July 27, 2020
As new pot licenses delayed indefinitely, global accounting firm pockets $7M from state to rank applicants
When the operators of Illinois’ medical marijuana businesses were given first crack at growing and selling recreational weed in the state, everyone else looking to break into the new industry was forced to wait months to even apply for licenses. They then saw their prospects put on hold when the COVID-19 pandemic brought everything to a halt. Meanwhile, one company that doesn’t even deal in cannabis has profited handsomely in that time. KPMG, a “Big Four” accounting firm based in the Netherlands with nearly $30 billion in revenues last year, was awarded nearly $7 million in no-bid contracts to grade applications for new recreational pot licenses, according to records obtained by the Chicago Sun-Times. KPMG is getting nearly $4.2 million through a contract with the Illinois Department of Financial and Professional Regulation, which oversees dispensaries, and $2.5 million from the Illinois Department of Agriculture, which is tasked with regulating cultivation operations and other cannabis business. The payments to the firm amount to more than 12% of the state’s $52.8 million in cannabis tax revenues during the first six months of recreational legalization. State officials didn’t open the contracts up to competitive bidding to speed up the process. But as it turned out, the delay in issuing 75 licenses to run pot dispensaries came in part because of a travel ban KPMG instituted in the wake of the COVID-19 outbreak and a provision in its contract with the state requiring the applications be picked up by hand. And while officials’ decision to go with an out-of-state firm was to prevent insiders from getting a leg up in the process, the delays lengthened the head start already given to the existing clout-heavy pot firms, including some that are publicly traded and another that counts a high-powered lobbyist as an investor. That’s helped them profit even more from the robust weed sales during the pandemic.
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State legalization of cannabis has posed many challenges to policymakers and law enforcement. In Arizona alone, nearly 250,000 patients were able to continue accessing their medications during the unprecedented pandemic crisis after medical dispensaries were deemed essential. As attention turns to repairing the economic damage wrought by the virus, federal policymakers must focus on an issue vital to a state’s public health and safety. The call for access to banking and financial services, currently out of reach to an industry responsible for 15,000 jobs in Arizona, and more than $4 million every month in transaction privilege taxes, is essential for the continued need to address the elimination of criminal enterprises which can penetrate an unregulated industry. In this case, we are dealing with billions of dollars in untracked cash. Arizona is in a unique position in that both Sens. Martha McSally and Kyrsten Sinema are important voices on the United States Senate Banking, Housing and Urban Affairs Committee. McSally and Sinema are well-positioned to champion an issue that has broad support among the electorate, the public and policymakers at every level of government. By advocating for banking access, not only will there be a decrease in the criminal attraction to an all-cash business, thousands of families across Arizona will have the opportunity to be viewed by lenders and financial institutions as legitimate business operators and employees. Ancillary businesses, such as law firms, accounting firms, and public interest groups servicing the legal cannabis industry, have also lost banking services.
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July 27, 2020
Oregon Drug Decriminalization Measure Will Reduce Racial Disparities And Save Money, State Officials Say
If Oregon voters approve a drug decriminalization measure this November, state officials say it would reduce racial disparities in the criminal justice system and save money that’s currently spent on arrests and incarceration. IP 44, which officially qualified for the ballot last month, would remove criminal penalties for illicit drug possession and expand substance misuse treatment in the state. Three state panels recently released draft analyses of the proposal. The Oregon Criminal Justice Commission published its draft report on the racial and ethnic impact of the measure this month. Members concluded it would reduce convictions for drug possession by about 91 percent statewide and also reduce racial disparities in arrests for illicit substances. “This means that approximately 1,800 fewer Oregonians per year are estimated to be convicted of felony [possession of controlled substances] and nearly 1,900 fewer convicted of misdemeanor [possession of controlled substances],” the report states. “Prior academic research suggests this drop in convictions will result in fewer collateral consequences stemming from criminal justice system involvement.” “Beyond the reductions described above, the changes proposed by IP44 would also lead to a reduction in racial disparities” for possession convictions, the commission said, adding that statistical analysis indicates these disparities would be “narrowed substantially” if voters pass the measure. The body went into detail about the methodology behind their analysis in a separate draft document that also included charts highlighting the estimated impact. During a public hearing on the draft impact statement on Thursday, several people argued that the analysis should go further by looking into racial disparities beyond convictions. They said those factors should also be studied when it comes to arrests, stops, sentencing and probation supervision.
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The U.S. could legalize marijuana at the federal level as soon as 2021 if Joe Biden is able to win the presidential election and Democrats take control of the Senate.
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The U.S. could legalize marijuana at the federal level as soon as 2021 if Joe Biden is able to win the presidential election and Democrats take control of the Senate. It’s a dramatic change in expectations from three months ago when it appeared Donald Trump would most likely win re-election, and CIBC analysts had put the odds of meaningful reform at “near-zero” for 2020 and “unlikely” for 2021. “A fact that has become incredibly obvious from a chaotic 2020 is how quickly things can change,” analysts led by John Zamparo wrote in a note. “We stand by our statement for 2020, but for 2021, well, when the facts change, we change our minds.” With the economic fallout from the coronavirus and social unrest following the murder of George Floyd by police, Biden’s chances of winning the election in a possible Democratic sweep has appeared increasingly likely. The former vice president is less supportive of full-scale legalization than his party. But if the Democrats were to win both the White House and Senate, it could open the door to decriminalization and leave the question of legalization up to states. Legislation could prove popular under the current climate of economic and social unrest. Regulation that includes provisions for criminal justice reform could gain additional support amid calls for greater anti-racism initiatives. States looking to close budget gaps from the coronavirus are also more likely to consider the tax benefits of creating a newly legalized industry. During a recent Cowen industry panel, there was broad agreement that social justice measures need to be a part of any legislation package, analysts led by Vivien Azer wrote in a note. “This likely includes provisions ensuring that minorities get to participate in the legal cannabis business as their communities were hit hardest by the war on drugs,” the analysts said. Legislation could also include expunging criminal cannabis convictions or grants to communities hurt by previous U.S. drug policy. “Biden will be under pressure from the left wing of the Democratic party to move cannabis forward because of the social justice issues,” Curaleaf Holdings Inc. Chairman Boris Jordan recently told Bloomberg News. There had been some disappointment after a Biden Unity task force didn’t embrace the same cannabis policy proposals from Bernie Sanders’s campaign. Most importantly, it left out full deschedulization, opting instead to make marijuana a schedule 2 drug rather than a schedule 1.
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July 25, 2020
France to fight cannabis use with €200 on-the-spot fines
French police will start hitting users of illicit drugs, particularly cannabis, with on-the-spot fines starting in September, Prime Minister Jean Castex announced on Saturday. Spot fines of 200 euros ($233) have been tested in several French cities in recent weeks and will now be applied nationwide, Castex said, ruling out a decriminalisation of cannabis. A French law dating back to 1970 allows for illicit drug use to be punished with up to a year in prison and fined with up to 3,750 euros, but few users actually do jail time. French people are Europe's leading consumers of cannabis and hold the number three spot for cocaine use. The new measure would simplify police procedures by "inflicting punishment without delay", Castex said during a visit to the southern port city of Nice, and would be an efficient tool against sale points run by drug dealers "which are eating away at neighbourhoods". If paid within two weeks the fine will be reduced to 150 euros, but will rise to 450 euros unless settled within 45 days. The move honours an election campaign pledge by President Emmanuel Macron, who said spot fines should be used to deter petty crimes that often end up unpunished in overloaded courts. The number of 15- and 16-year-olds who admitted recent use of cannabis was higher in France than any other European country in a 2015 survey published by the European Monitoring Centre for Drugs and Drug addiction, an EU agency.
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