December 18, 2020
Legal Weed Is Coming to New Jersey — But How Will That Work?
Election Day marked a turning point in the United State’s war on drugs, as Oregon decriminalized possession of drugs, Mississippi approved medical marijuana, and New Jersey passed its Question 1 proposed constitutional amendment legalizing cannabis. As the year draws to a close, however, just what needs to be done to make weed legal in the Garden State? The Election Day vote was, apparently, the easy part — 65 percent of voters cast a ballot for a constitutional amendment that legalizes a recreational cannabis market for adults 21 and older. It was up to legislators, then, to figure out what exactly that would look like. An initial set of bills outlining this plan included one pertaining to legalization and another detailing decriminalization. The whole plan hit a wall in November, though, when the State Senate voted to add psilocybin, the hallucinogenic compound in psychedelic mushrooms, to the decriminalization bill — a move that postponed the final vote on the legislation. That decision conceded with a call to add more social justice initiatives to the legalization bill, a move that would provide aid for the communities that have been negatively impacted by the war on drugs. (For example, the ACLU reports black people are 3.64 times more likely to get arrested for marijuana charges than white — even though both use cannabis at similar rates — so largely black communities are statistically in need of more aid.) Then, as they say, it was back to the drawing board. Legislative leaders finally announced they had agreed on a proposed plan on December 4th in a joint statement from Governor Phil Murphy, Senate President Steve Sweeney, Assembly Speaker Craig Coughlin, Senate Judiciary Committee Chairman Nicholas Scutari, and Assembly Majority Conference Chair Annette Quijano: “We’ve reached an agreement on legislation providing the framework for legalization, which is a critical step in reducing racial disparities and social inequities that have long plagued our criminal justice system. This legislation will accomplish our shared goals of delivering restorative justice and ensuring that the communities most impacted by the War on Drugs see the economic benefits of the adult-use cannabis market. While there is still much work ahead, we are one step closer to building a new, promising industry for our state.” That legislation will be sent to the floor for the final vote on Thursday, December 17th. So, then, what’s next? And what, exactly, are they voting on?
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Richmond Mayor Levar Stoney wrote a letter to Gov. Northam supporting marijuana legislation. In the letter, Stoney says the first priority is to have ‘complete and total expungements’ for those who have been criminalized or incarcerated for marijuana possession. The second priority is to have costs associated with ensuring the movement operates within a regulatory framework built on best practices and pragmatic progressivism. “I join cannabis legalization advocates everywhere in looking forward to the 2021 legislative session,” Mayor Stoney said in the letter to Northam. “Legalization opens many doors to restore justice in our underserved communities. Let’s give it the intentionality it deserves and meet this moment with plans for a solid foundation upon which to build a more just Virginia.” Stoney also states, “the Commonwealth must invest in a legalization timeline that is equitable and fiscally responsible.” Stoney said the funds should also be an investment into Virginia families, particularly at the preschool level. “Not only will we see long-term improvements in children’s outcomes, but we will also see a short-term boost to maternal employment and economic participation,” he said.
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December 18, 2020
An equitable cannabis industry comes from lowering barriers to entry, not good intentions | Opinion
As the 12th state to legalize cannabis, New Jersey is positioned to learn from a decade’s worth of experiences to create a racially and socially just industry. As currently written, New Jersey’s bill to implement legalization repeats some of the mistakes that have led to an inequitable cannabis industry in state after state, including my home state of Massachusetts. New Jersey must create an inclusive and diverse industry from the start, by lifting the financial barriers to entry for applicants who have borne the greatest injustices of the drug war. Because of the early inattention to meaningful equity policies, the cannabis industry as a whole mirrors the vast majority of other industries – controlled by wealthy white men and corporate interests. Many states are now attempting to insert equity and community reinvestment into the existing marketplace. New Jersey has the opportunity to get it right from the start. Since New Jersey voters overwhelmingly approved cannabis legalization in November, advocates at multiple legislative hearings have delivered hours-long testimony with a unified message: for equity, lawmakers have to put their money where their mouth is. We need legislation that advances social justice not just symbolically but in reality. Massachusetts, where I am the co-founder and CEO of Major Bloom, LLC, a Certified Economic Empowerment Marijuana business, provides an object lesson in the limits of well-meaning policies that tried and failed to include those most harmed by the drug war in the new cannabis industry. Ultimately, the state’s failure to provide adequate access to start-up resources doomed those programs to become window dressing, incapable of countering a deeply inequitable status quo.
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December 18, 2020
CALIFORNIA’S FLAVORED TOBACCO BAN DELAYED UNTIL SIGNATURE VERIFICATION PROCESS COMPLETE
The Superior Court for the County of Sacramento approved an agreement between the parties in its case which will suspend the Jan. 1, 2021 date of enforcement until, at the very least, after the signatures are verified for a ballot measure proposal that seeks to repeal the law.
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December 14, 2020
Cannabis legalization, backed by Massachusetts delegation, could put $7B dent in federal deficit
The effort to decriminalize and tax cannabis, which finds strong support among Massachusetts lawmakers and advocates, could cut into the federal deficit to the tune of $7 billion over the next decade. On top of addressing what many Massachusetts Democrats and cannabis advocates describe as racist drug laws that disproportionately impact communities of color, the decriminalization bill that recently passed in the House of Representatives could shave about $1.2 billion off the ever-increasing federal deficit by 2025, and possibly $7.3 billion by 2030, according to recent analysis by the nonpartisan Congressional Budget Office. Proponents of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act are pressing to expunge federal marijuana convictions and free up states to create their own laws and build new economic opportunities. Leading reformers hope the big jump in revenues and hefty deficit cut could help draw support from Republicans in the U.S. Senate. Sens. Elizabeth Warren and Ed Markey, and Reps. Jim McGovern, Ayanna Pressley, Joe Kennedy III, Katherine Clark, Lori Trahan and Seth Moulton all co-sponsored Senate and House versions of the bill. The Democrat-led House passed the bill last week 228-164, with Reps. Bill Keating and Stephen Lynch joining their Massachusetts colleagues by voting in favor. Only five House Republicans voted for the law; just six Democrats voted against. “It was sad that my Republican colleagues were unable to understand why we voted to reform our failed prohibition of cannabis,” Rep. Earl Blumenauer, a Democrat from Portland, Oregon, said in a statement. “They don’t care about honoring the will of the people and they are unable to grasp the enormity of the racial injustice and damage by selective enforcement against young Black and Brown Americans. But the CBO score may have some other reasons for them.”
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December 14, 2020
Herring participates in summit on legalizing marijuana
Attorney General Mark Herring participated in a summit on Thursday focusing on the importance of legal and regulated adult cannabis use in Virginia. According to a release, he was part of the “Legalize It: The Path to Cannabis Equity in Virginia” summit, which was put on by Virginia NORML and the Tom Tom Foundation. The summit aims to address the future of marijuana legalization in the Commonwealth, and Herring says it's a matter of public safety, justice, equity and economic opportunity. “We have a real opportunity now to bring equitable cannabis legalization to the Commonwealth and we have all the tools and information at our disposal to make sure that we come up with the best plan for Virginia that meets our public safety and equity goals,” said Herring. “My office can bring a unique perspective and play an integral role in helping with this process through our focus on consumer protection, acting as counsel for state agencies, and our experiences with criminal justice reforms to make sure that we come up with a suitable plan. I look forward to working with Virginia NORML and our other partners in the House, the Senate and other advocacy groups as we move Virginia ever closer on our path towards legalization.” The release says Herring noted that his office has been charged with protecting consumers and the need to make sure the industry is safe under proper regulations and making sure products are advertised accurately. The Attorney General’s Office will serve as counsel to state agencies and guide any agencies that are created to handle the cannabis industry. This year, the General Assembly decriminalized possession of small amounts of marijuana.
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December 14, 2020
Mexico Just Postponed the Legalization of Weed to 2021 Due to COVID
In a disappointing twist for advocates of drug policy reform, Mexico will not legalize cannabis in 2020. The country’s Supreme Court accepted a formal petition from the Lower House of Congress on December 10, requesting an extension until April 30, 2021, on a looming deadline for a vote on a proposed legalization bill. The court had previously ruled that the legalization bill must be voted on by December 15. The petition from the Lower House of Congress claimed that the “complexity of the issues at hand” and the ongoing coronavirus pandemic "has made it difficult for the legislative process to consider with the depth and care that any process of formation and reform of the laws implies." The Supreme Court obliged, also citing COVID as the reason they accepted the petition for postponement. Cannabis enthusiasts had been optimistic that the bill — while flawed — would pass the various levels of government by the December deadline. In November, Mexico's Senate voted to pass the bill, leaving the Lower House of Congress as the only roadblock to legalization. “It’s disappointing that the two legislative bodies couldn’t have coordinated better the drafting of this bill in order to ensure that they would have complied with the dates set by the Supreme Court,” said Zara Snapp, a legalization activist and co-founder of the Mexican research and advocacy organization Instituto RIA. The recent Supreme Court decision is the fourth time that the governing body has allowed the deadline to be extended since ruling in 2018 that the prohibition of the personal use and cultivation of cannabis was unconstitutional. However, Snapp expressed hope that lawmakers will use the additional time to alter the bill to remove remaining criminal penalties and sanctions, and expand opportunities for communities who have been affected by prohibition.
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December 14, 2020
Modelling The Expected Impact Of Cigarette Tax And Price Increases Under Vietnam's Excise Tax Law 2015-2020
Vietnam's national tobacco control strategy aims to reduce the rate of smoking among male adults from 45% in 2015 to 39% by 2020. The aim of this paper is to assess what contribution cigarette tax increases under Vietnam's current excise tax plan can be expected to make to this target, and to discuss what additional measures might be implemented accordingly
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December 11, 2020
USDA calls on hemp operators to apply for supply-chain research grants up to $10 million
Federal agricultural funding grantors are asking for hemp operators working toward transformational changes in the U.S. food and agriculture system to apply for research money to help develop the hemp supply chain.
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December 11, 2020
In Hydrofarm IPO, Investors Seek Pot Growth Without the Pot
Hydrofarm Holdings Group Inc.’s initial public offering topped the company’s own pricing expectations, showing just how much investors want a piece of the cannabis action -- but without the actual cannabis. Trading on Thursday started at $46 a share, well above the $20 price set in Wednesday’s offering. What's moving markets: The maker of hydroponics equipment has benefited from growth in the marijuana market, which accounts for as much as 70% of Hydrofarm’s end users, according to Chief Executive Officer Bill Toler. And since the 43-year-old company doesn’t actually “touch the plant” -- investor-speak for businesses that keep a distance from the marijuana itself, thus avoiding legal concerns -- Hydrofarm has drawn interest even from large institutional backers. “The marijuana stigma has gone the other way -- there’s more interest,” Toler, the former CEO of munchies-maker Hostess Brands Inc., said in an interview. Hydrofarm offers investors a “picks and shovels play” that isn’t tied to the success of any one cannabis brand or retailer, he added. The public debut comes just weeks after five more U.S. states voted to legalize cannabis and only a few days after the House of Representatives passed legislation to legalize marijuana at the federal level. While the latter bill isn’t expected to pass the Senate, an incoming Democratic presidential administration has lifted hopes in the industry that U.S. legalization isn’t far off. That enthusiasm buoyed Hydrofarm, which surpassed expectations in its initial pricing. The company raised about $173 million in proceeds from Wednesday’s offering, after saying earlier that it expected as much as $159.3 million and an initial price of $17.50 a share. Funds raised will be used to build brands, with potential acquisitions in nutrients and grow media, Toler said. Unlike many cannabis companies, which have gone public in Canada or through maneuvers such as reverse takeovers, Hydrofarm’s offering looked like a mainstream IPO, and it counted JPMorgan Chase & Co. and Stifel Financial Corp. as leading book-running managers. While institutional investors have shied away from cannabis due to ambiguous rules and federal prohibitions on loans and banking, ancillary plays have caught their attention. For instance, large firms hold more than half the shares of hydroponics retailer GrowGeneration Corp., according to Bloomberg data, while institutional investors account for less than 1% of Curaleaf Holdings Inc., the biggest multistate operator in the U.S. GrowGeneration’s stock has soared this year, making it a top cannabis stock of 2020. Scotts Miracle-Gro’s Hawthorne business has also boomed with a similar, competing business in hydroponics. With the cannabis industry maturing rapidly, Toler said there’s potential for his company to serve customers from small, craft growers to massive greenhouses. “It’s like the beer business,” he said. “You have Miller and Anheuser-Busch at the top, but you also have 1,000s of craft beers. We think you’re going to have that kind of a structure here.”
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