September 23, 2020
Vermont Bills To Legalize Marijuana Sales And Expunge Convictions Head To Governor’s Desk
A bill to legalize marijuana sales in Vermont and another to provide automatic expungements for cannabis convictions are heading to the governor’s desk following a final Senate vote on Tuesday. The legislation, which previously passed both chambers in differing forms, was recently merged into a compromise by a bicameral conference committee and then sent back to both chambers of the legislature for consent. The House of Representatives approved the negotiated legislation last week and the Senate followed suit with a 23-6 vote.
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September 23, 2020
New marijuana dispensary licenses stalled again as Pritzker vows to ‘get ... it right’
A day after giving losing applicants a second chance to qualify for a lottery to determine the winners of the next round of pot shop licenses, Gov. J.B. Pritzker declined Tuesday to give a date when the permits would be issued, only saying it would happen “this fall.” Under heavy fire from scorned hopefuls and lawmakers, Pritzker on Monday announced that candidates who didn’t receive perfect scores would be able to revise their applications and challenge the grades they received from the state. Only 21 of more than 900 applicants had advanced to the next round.
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September 23, 2020
Marijuana Accounts For One In Ten South Dakota Arrests, New Report Shows Ahead Of Legalization Vote
Marijuana arrests in South Dakota are common, costly and carried out on a racially disproportionate basis, a new report released by advocates for a legalization measure on the state’s November ballot shows. In fact, nearly one in 10 of all arrests in the state in 2018 were for cannabis offenses, with 95 percent of those cases concerning simple possession. There were 31,883 marijuana arrests in South Dakota from 2009 to 2018. That’s according to an analysis of federal crime data, which was published by South Dakotans for Better Marijuana Laws on Tuesday.
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September 22, 2020
VT gov happy with legal cannabis sales bill process (Newsletter: September 21, 2020)
TOP THINGS TO KNOW: Vermont Gov. Phil Scott (R) seems pleased with the process that led to a new marijuana sales legalization bill that just passed the House—though he stopped short of committing to sign it. One more vote in the Senate this week will put it on his desk.A new poll found that a majority of U.S. voters—including most Republicans—support a federal marijuana legalization bill that House Democratic leaders delayed a vote on over fears about the reelection prospects of their moderate lawmakers in key districts. A new report from the Congressional Research Service highlights four major consequences of federal marijuana prohibition. From consumers to researchers to banks, the current ban on cannabis is causing problems for a lot of people and institutions, the Capitol Hill office showed. The U.S. Department of Agriculture said hemp farmers can finally participate in a coronavirus relief program that they’d been ineligible for until now. Four separate federal agencies are now accepting public comments on cannabis issues ranging from marijuana research to hemp and CBD rules to workplace drug testing—with the deadline to send feedback on one proposal coming up on Monday. FEDERAL: The Drug Enforcement Administration’s proposed hemp rule is being challenged in a lawsuit by the Hemp Industries Association and RE Botanicals. Sen. Martha McSally (R-AZ) sidestepped a question about whether she supports her state’s marijuana legalization ballot measure, saying, she’ll “let the Arizona voters decide that.” Rep. Alexandria Ocasio-Cortez (D-NY) spoke about how she is trying to get Democratic presidential nominee Joe Biden to evolve on marijuana legalization. Rep. Barbara Lee (D-CA) tweeted, “The MORE Act is critical for ending the failed War on Drugs. The public deserves a vote on the MORE Act and we will continue to build support to meet our objective of passing it in the House & sending it to the Senate until it is the law.” The House bill to deschedule marijuana and fund programs to repair the harms of the war on drugs got two new cosponsors for a total of 113. The House bill to allow CBD as a dietary supplement got two new cosponsors for a total of three.
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A coalition of advocacy groups and marijuana businesses have unveiled a unique plan to legalize interstate cannabis commerce regardless of ongoing federal prohibition. The Alliance for Sensible Markets campaign will be pushing governors from legal and likely soon-to-be legal marijuana states to enter into an interstate compact—a constitutionally recognized agreement between two or more states—establishing a framework for cannabis to be transported and marketed across state lines. Such an arrangement hasn’t been tried before for marijuana, but if the new effort succeeds in getting at least two states to sign on, the compact would then be transmitted to Congress, where lawmakers would have the choice to codify the agreement. It could be passed as standalone legislation or attached as an amendment or rider to a broader bill. Perhaps the best example of an interstate compact is the Port Authority, which was created in 1921 to regulate regional transportation and infrastructure in New York and New Jersey. Those two states are actually being targeted by the Alliance for Sensible Markets, despite not having legalization on the books just yet. California and Oregon are the two other states the campaign hopes to bring on board. Part of the logic in choosing these states is that California and Oregon are considered producer states with high volumes of marijuana whereas New York and New Jersey are more traditionally consumer states, where the climate is less friendly to large-scale, outdoor cultivation. By opening a market that would allow for interstate commerce, it would “immediately increase valuations significantly for thousands of farms and businesses on the West Coast, which will spur investment expansion and jobs,” Adam Smith, founder and president of the Alliance for Sensible Markets, told Marijuana Moment. “And in consumer states—states that don’t traditionally grow their own cannabis—we have seen the length of time it takes to get state-siloed production industries up and running and supply chains stable.” “Let’s set up the industry in the newly legalizing states in a way that reflects reality and reflects what the future of this industry is so we can actually grow the industry without wiping a whole bunch of people out,” he said.
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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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