April 20, 2020
20 ways to address marijuana reform amid COVID
As Congress returns to address the global coronavirus pandemic, it should not leave out relief for cannabis workers, employers, patients, and individuals directly impacted by marijuana prohibition. The worst impacts of COVID-19 have disproportionately impacted the populations that were already the most vulnerable before the virus hit U.S. shores. Given the far-reaching consequences of marijuana criminalization, communities harmed by prohibition are at an elevated risk to economic and health challenges during this crisis.
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Dozens of lawmakers and congressional candidates are calling for marijuana reform on 4/20. While major brands are marketing off the informal cannabis holiday, policymakers and office-seekers are drawing attention to the ongoing harms of prohibition and encouraging policy changes. Here’s what they’re saying:
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Mexican lawmakers now have until Dec. 15 to legalize marijuana and hemp – a new deadline set by the country’s Supreme Court in light of the coronavirus outbreak. Late Friday, the Supreme Court announced the new deadline for legalization to happen during the lawmaker’s next scheduled session, which runs from Sept. 1 to Dec. 15. Only weeks ago, it appeared Mexico was on the verge of becoming the world’s most-populous country to legalize marijuana and hemp.
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Vancouver police say while there is no organized event for 420 this Monday, they are monitoring locations where smaller groups of people may gather for the pot celebration despite physical distancing measures in place to curb the spread of COVID-19. Every year, thousands of cannabis enthusiasts light up at the annual 420 celebrations in Vancouver's West End neighbourhood. This year, instead of vendors and participants coming together in large crowds at Sunset Beach, a virtual 420 is being hosted on the Pot TV and Cannabis Life Network websites.
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April 19, 2020
US cannabis CEOs say coronavirus crisis will speed up legalization: ‘We have been deemed essential
U.S. cannabis CEOs say the chances for federal marijuana legalization will dramatically increase in the wake of the coronavirus pandemic, after several states declared dispensaries essential businesses, allowing them to remain open during stay-at-home orders aimed at halting the spread of the virus. CNBC spoke with the leaders of U.S. based cannabis producers Cresco Labs, Curaleaf, and Green Thumb Industries as well as cannabis investor Matt Hawkins about the state of the industry ahead of April 20, also known as “4/20,” the unofficial holiday for recreational cannabis users. “When we all start to be able to lift our heads from this Covid experience, we are going to be faced with a scenario where a lot of jobs have gone away, a lot of economic development impact has disappeared,” said Charlie Bachtell, CEO of Cresco Labs. “How are we going to bring that back? I think cannabis has to be part of that discussion.” According to Cowen estimates, the U.S. cannabis market is worth approximately $56 billion in 2020 with about 90% of sales going untaxed in the illegal market. “One of the programs by the federal government right after the Great Depression was to focus on tax revenue generation,” said Curaleaf Executive Chairman Boris Jordan. “They lifted prohibition on alcohol and therefore started to tax it -- and it became a major revenue generator for both the federal and the local governments around the country.” Jordan said governments will be looking for ways to generate revenue, as was the case after the Great Depression, and cannabis “is a significant revenue generator.” ‘Essential businesses’: As the global coronavirus pandemic brought most U.S. businesses to a near halt in March, cannabis dispensaries were designated as essential in 8 of the 11 states where adult-use is legal. Sales have also surged. According to Cowen, weekly sales in March topped $134 million in California, Washington, Nevada, and Colorado, a 17% increase from the weekly average in 2019. In the second half of March, the average purchase also increased by 47%. Cannabis investor Matt Hawkins says the data makes the best case for legalization. “You can just point to the fact that we have been deemed essential, why are we not legal?” said Hawkins, managing partner of Entourage Capital, a private equity firm with $200 million invested in Green Thumb Industries and other cannabis producers. “There is going to be a need for increased tax revenue and where else to look but at a legalized industry like cannabis, that is one of the few growth sectors in the world right now.” Ben Kovler, CEO of Green Thumb Industries, said the crisis has put a different light on the industry and more states could start legalizing as a consequence, making the federal government take note. “The great American experiment will become more real as the federal government sees what’s happening at the states,” Kovler said. Three states – New Jersey, Arizona, and South Dakota – are expected to have adult-use legalization on the November ballot. Three others – New York, Connecticut and Rhode island – have bills pending that could legalize adult-use cannabis through the legislature.
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April 19, 2020
Cannabis Entrepreneurs Sue LA Over Process Approving Shops
Marijuana entrepreneurs who want to open new pot shops in Los Angeles are suing the city, arguing that the application process for licenses was unfairly implemented, according to a newspaper report. The lawsuit by the Social Equity Owners and Workers Association asks a judge to require the city to vet each of the hundreds of applications submitted under a first-come, first-served process for licenses, the Los Angeles Times reported Saturday. Barring that, the suit seeks a new process that gives everyone “an equal, fair and transparent opportunity” to compete for a license. The group filed its suit about three weeks after an audit of the highly competitive process for handing out LA licenses for new pot shops was released.
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April 19, 2020
Kansas moves one step closer to commercial hemp program
The process of establishing a new commercial hemp program in Kansas has taken a critical first step. The U.S. Department of Agriculture approved the plan by the Kansas Department of Agriculture to change the state’s research-based commercial hemp program to a commercial program. This approval makes it possible for farmers to grow hemp without being under the umbrella of a research program. Once this program is approved by the state, farmers will not have to make formal research proposals in order to grow the non-hallucinogenic crop. But the program must jump through several more hurdles to change status. These include state-based rules and regulations. Heather Lansdowne, a spokesperson for Kansas Department of Agriculture, said it doesn’t mean any immediate charge for farmers. But she added that the agency was “confident” that they would be growing commercial hemp next year.
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April 18, 2020
Mass. cannabis regulators ask lawmakers to advocate for marijuana businesses seeking financial assistance during COVID-19 pandemic
Members of the state Cannabis Control Commission have penned a letter to the Massachusetts congressional delegation, asking that the lawmakers advocate for marijuana businesses that are seeking financial assistance during the COVID-19 pandemic, as such businesses already face limited access to capital. While marijuana is legal in Massachusetts, it remains illegal on the federal level. Marijuana businesses are not able to benefit from financial assistance available through the Small Business Administration. “We request that you advocate for cannabis businesses licensed by the Commonwealth of Massachusetts to be able to apply for and receive the same or analogous assistance as other state-recognized businesses that have been or expect to be negatively impacted by the declared COVID-19 federal emergency,” members of the commission wrote in the letter, which was sent to the office of Sen. Elizabeth Warren on Friday. Marijuana shops in Massachusetts have suffered major financial losses over the last few weeks. Gov. Charlie Baker has issued an order banning all non-essential businesses from operating through May 4. While medical marijuana is considered essential, recreational pot stores had to close. “Many Massachusetts cannabis businesses are small businesses. Like small businesses across many sectors, they now face an uncertain future,” the letter reads. “What differentiates state-legal cannabis businesses, however, are restrictions on both basic business banking and, now, disaster relief options, not faced by others. For this reason, we request your consideration and advocacy for assistance that is inclusive of these Massachusetts businesses in any forthcoming COVID-19 stimulus legislation.”
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April 18, 2020
How Technology Is Transforming the Cannabis Industry
The last decade has been a game-changer for the legal weed industry, with numerous states legalizing the consumption of marijuana for recreational and medicinal uses. Bringing these products to the mass market has involved numerous scientific breakthroughs. Instead of the minimal processing of the plant, growers are now creating oils for vaping, capsules, edible gummies, and more. As we move forward into a new era of marijuana consumption, it will be interesting to see how technological breakthroughs change the way we get high. Here are a few projects in development that could radically reshape the cannabis industry.
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April 17, 2020
Lawmakers Want Business Owners With Marijuana Convictions To Be Eligible For Coronavirus Relief
Two House members are urging congressional leaders to fix a “glaring flaw” in a coronavirus relief program that disqualifies people for business loans due to past convictions, including those for simple marijuana possession. Under the federal Small Business Administration’s (SBA) Paycheck Protection Program (PPP), individuals are automatically disqualified from receiving aid if they’ve been convicted, pleaded guilty, pleaded nolo contendere, placed on pretrial diversion or placed on parole or probation in the last five years. Reps. Joyce Beatty (D-OH) and Joe Kennedy III (D-MA) asked House and Senate leaders to end the policy as part of future COVID-related legislation. “These guidelines are overly broad and promise to disqualify small business owners in many jurisdictions for offenses as minor as possession of marijuana,” they wrote. “Inevitably, this policy will disproportionately hurt communities of color who, due to structural inequities, are most affected by the criminal justice system.” They added that data suggests that communities of color are being especially impacted by the coronavirus pandemic, and so enforcing this rule is “counterintuitive and unjust.” “SBA has created broad criminal history standards that will disqualify small business owners who have worked hard to reintegrate into society from accessing critical PPP funds,” they said. “As Congress considers future legislation, we urge you to ease these restrictions as well as for any additional programs created in the future.” Kennedy is a recent convert to supporting marijuana law reform. While he opposed a legalization measure that voters in his home state approved in 2016, he came out in favor of ending cannabis prohibition in 2018. And during his current primary campaign to unseat incumbent Sen. Ed Markey (D-MA), he’s cosponsored federal marijuana legalization legislation and pushed for a hearing to address the consequences of the drug war. Beyond people with prior recent convictions, the marijuana industry as a whole is specifically ineligible for the emergency relief that’s been passed by Congress. That also includes businesses that work “indirectly” with cannabis firms—like accounting and law firms. Thirty-four House members signed onto a separate letter imploring leadership to fix that on Friday. Sen. Jacky Rosen (D-NV) is in the process of delivering a similar request on the Senate side. She also led another recent letter asking the Appropriations Committee to insert language into future spending legislation extending SBA access to marijuana businesses. In a letter to state treasurers that was delivered earlier this month, a coalition of marijuana industry associations urged the officials to pressure their congressional delegations to include SBA access for cannabis firms in future coronavirus legislation. They also want the states to explore providing separate loan and lending programs for the market.
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