There is one bright spot in the economy: marijuana sales. In April, Oregon saw $89 million in legal marijuana sales. The Oregon Liquor Control Commission reports marijuana sales were up 45% in April, compared to last year, making April 2020 the largest month on record for the state. Proponents believe the coronavirus pandemic could be the catalyst for other states and the federal government to legalize marijuana because it would bring tax revenue, create jobs and give the economy a much-needed shot in the arm. Oregon’s annual tax revenue from recreational marijuana sales exceeds $100 million. The state collects 17% tax on retail cannabis sales, while counties or cities can apply a 3% tax. Legal pot has provided a steady stream of tax revenue when other sources like personal income or state lottery revenues are less predictable due to the struggling economy and stay-at-home orders. Many cannabis dispensaries were deemed ‘esssential’ in many states, including Oregon, allowing them to remain open during government restrictions. “There’s a reason why over 25 states have declared marijuana dispensaries to be essential services. These are things people rely on,” explained Rep. Earl Blumenauer, D-Ore. While many businesses have reduced their workforce during the pandemic, proponents say legalizing pot nationwide could help create new jobs for many Americans. “Up until March there were almost a quarter-million people who worked in the industry,” said Blumenauer, a long-time advocate for marijuana legalization. Congress is already considering some reform, including marijuana banking laws.
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May 18, 2020
Massachusetts reopening plan for recreational marijuana calls for curbside delivery to start May 25
After being shuttered during the COVID-19 pandemic, Massachusetts Gov. Charlie Baker announced recreational marijuana stores can reopen on May 25 for curbside delivery only as part of a comprehensive statewide reopening plan unveiled Monday. Massachusetts is the only state with legal marijuana that ordered adult-use stores to close during the pandemic. Shops have been shut down since March 24, when Baker issued an order requiring businesses considered non-essential to cease operations in an effort to slow the spread of COVID-19, the disease caused by the new coronavirus. Even though they’ll be able to sell marijuana again, the financial losses are significant for the state’s small cannabis companies. Many of the state’s marijuana businesses have laid off or furloughed workers during the pandemic. Baker said in March that he believed recreational stores staying open would attract customers from outside of Massachusetts to drive in and purchase marijuana. Though stores were already implementing social distancing and other health and safety measures, and though some argued that the majority of customers come from within miles of the store, Baker did not budge. While the reopening of stores will bring a sigh of relief, marijuana businesses have struggled during the pandemic like just about every other industry. But, unlike many other industries, cannabis businesses are not eligible for federal relief through the Paycheck Protection Program because marijuana remains illegal on the federal level. Through the pandemic, Cannabis Control Commission Chairman Steven Hoffman has said the recreational market could be operated safely, pointing to the continued operation of the medical market as an example.
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May 18, 2020
Louisiana House Approves Medical Marijuana For Any Debilitating Condition, Along With Delivery Services
The Louisiana House of Representatives overwhelmingly approved bills on Friday to significantly expand the state’s medical cannabis program by bringing in patients with more conditions and allowing dispensaries to deliver marijuana products directly to those patients’ homes. This comes about a week after the Health and Welfare Committee advanced both pieces of legislation, in addition to several other cannabis expansion bills that were filed as backups in case the chamber declined to pass this broader version, which will let doctors issue recommendations for any debilitating condition rather than a short list of specific maladies as is the case under current law. Both bills approved by the House were sponsored by Rep. Larry Bagley (R). His medical condition expansion bill passed 76-15 and the delivery legislation was approved 80-15. The expansion legislation as originally drafted would have simply added traumatic brain injuries and concussions to the list of conditions that qualify a patient for a marijuana recommendation. But it was amended in committee to add several other conditions as well as language stipulating that cannabis can be recommended for any condition that a physician “considers debilitating to an individual patient.” “It’s something that deserves to be done,” Bagley told Marijuana Moment in a phone interview after the floor votes. “I knew that it was bipartisan. I never thought it had a chance to fail unless I messed up somewhere in the presentation.” “I think what it’s going to mean is, people that have physical problems, they will be able to have an alternative to opioids,” he said. “I know we have a terrible addiction here in Louisiana with the opioid epidemic. Opioids can kill you. I don’t think anybody’s ever died from medical marijuana. It’s just a safety issue.” “People claim that [cannabis is] a lifesaver that has done all sorts of things. I can’t refute any of that,” he added. “Everybody has the right to do that. That’s why we live in America. I’m pretty excited about the bill and I hope it does a lot of good.” Currently in Louisiana, a list of 14 conditions can qualify a patient for cannabis. That includes cancer, epilepsy, Parkinson’s disease and severe muscle spasms.
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Colorado hotel room rentals increased considerably after the state began legal marijuana sales, a newly published study reveals. Washington State also saw increases in tourism after legalization, though the effect there was more modest. The two states were the first in the U.S. to allow adult-use cannabis through laws approved by voters in 2012. By comparing hotel room rentals in Colorado and Washington to states that did not change their legal status of marijuana from 2011 through 2015, researchers found that legalization coincided with a significant influx of tourists and a rise in hotel revenue. The impact was even more pronounced after the start of retail sales. In both states, personal possession of marijuana was permitted for a period of time before legal sales began, and each change coincided with increases in tourism. In Colorado, legalizing possession led to monthly hotel booking increases of 2.5 percent to 4 percent, depending on the modeling method used. Once retail stores opened, the state saw bookings increase by 6 percent to 7.2 percent.
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May 17, 2020
Industry Group Asks Seven Governors To Legalize Marijuana To Aid Coronavirus Economic Recovery
A marijuana industry group sent letters to seven governors in the Northeast on Thursday, imploring them to push for cannabis legalization to aid in economic recovery amid the coronavirus pandemic. The National Association of Cannabis Businesses (NACB) said a regionally coordinated legalization strategy would help generate much-needed tax revenue from legal marijuana sales. “Governors in the northeastern U.S. have been working tirelessly and effectively to contain the coronavirus crisis, and the NACB has great respect for their efforts,” Mark Gorman, NACB executive vice president, said in a press release. “We are also enthusiastic for their leadership of efforts to coordinate the resources and strategies needed to emerge from the lockdown.” “Legalizing cannabis sales and encouraging retailers to be proactive with strategies like home delivery and curbside pickup is not only a safe way to serve consumers, it will also generate millions of dollars in desperately needed tax revenues for their states,” he said. The letters were sent to the governors of New York, New Jersey, Connecticut, Delaware, Pennsylvania, Rhode Island and Massachusetts. NACB said in the letters that they feel “strongly that pushing legislation over the finish line to fully legalize cannabis for adult recreational use is an idea whose time has arrived.” “In challenging times like these, foregoing the chance to boost small business, minority entrepreneurship, employment and state tax revenue can hardly be passed up, and we look forward to working with you and the legislature to achieve success this year,” the letters state. Parts of the letters are personalized to each governor, commending previous actions to enact legalization. For example, NACB applauded Rhode Island Gov. Gina Raimondo (D) for including legalization in her proposed budget this year. It also gives New Jersey Gov. Phil Murphy (D) credit for engaging in regionally coordinated meetings with governors of neighboring states to develop a cannabis legalization plan.
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An Arkansas Department of Agriculture survey found 94 percent of the state’s hemp growers lost money on the crop last year, planting a total of 1,819 acres but harvesting just 883 acres, the Arkansas Democrat-Gazette reports. Despite the losses, the agency has already issued more hemp cultivation licenses for the upcoming growing season than all of last year. The Agriculture Department has issued 152 cultivation licenses so far this year, up from 125 last year, the report says. Additionally, the agency has issued 39 hemp processor licenses so far – up from 33 last year. The licenses have been issued in 55 of the state’s 75 counties after hemp was grown in 51 of the state’s counties last year. Arkansas hemp farmers reported capital investments last year of more than $5.8 million, total operating costs of $5.9 million, and sales to processors of nearly $846,000. They reported a total gross income of $702,291, an average of $3,266 per farmer, according to agency figures outlined by the Democrat-Gazette. Some crops were hampered by rains along with flooding along the Arkansas River; however, 21 percent of licensed cultivators indicated their crops had been stolen by thieves who believed the plants were THC-rich cannabis. Caleb Allen, manager of the state’s hemp program, warned though that the theft figures are “self-reported” and that they couldn’t be independently verified. Growers who participated in the survey said they were unable to sell 54.6 percent of last year’s crop – or about 108,000 pounds. Only about half of the licensed processors reported buying hemp from in-state growers, paying them about $330,000. According to U.S. Department of Agriculture data, Arkansas is still operating under its pilot hemp program enacted in 2014. Lawmakers have not yet passed legislation updating the program for federal approval as required under the 2018 farm bill.
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For more than two months now, the coronavirus disease 2019 (COVID-19) pandemic has disrupted economic activity to a degree we've never previously witnessed. All told, the U.S. unemployment rate is nearing 15%, which is a level unseen since the Great Depression. With the understanding that things may not be "normal" for a while, Congress passed and the president signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law on March 27. Among other things, the $2.2 trillion CARES Act provides $100 billion to hospitals, $500 billion for distressed industries, almost $350 billion for small business loans, and $260 billion for a four-month expansion of the unemployment benefits program. But the most memorable aspect of the CARES Act is the $300 billion directed toward stimulus payouts. These payouts, officially known as Economic Impact Payments, were sorely needed by Americans and their families to help purchase essential goods, as well as pay rent, mortgage, or utility bills. Unfortunately, surveys have shown that the vast majority of stimulus recipients burn through their payout in four weeks or less. Thus, for many folks, a second round of stimulus is very much needed. Understanding these concerns, the Democrat-led House of Representatives introduced the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act last week. At $3 trillion, it would surpass the CARES Act as the biggest relief package in history, if approved. The HEROES Act puts money to work in a variety of ways. It provides $1 trillion to at-need states, creates a $200 billion Heroes' fund to provide hazard pay to essential works, extends the unemployment benefits program expansion through January 2021, and allots $175 billion to help struggling families pay their rent, mortgage, or utility bills. Additionally, the HEROES Act would mark round two of direct stimulus payouts. Using the same adjusted gross income eligibility requirements as the CARES Act, another maximum payout of up to $1,200 would head toward single taxpayers. However, changes in the bills' language, as well as in how much dependents can add to what a parent or household receives, could boost household payments to as much as $6,000. But putting money into the pockets of Americans isn't all the HEROES Act would do. A deeper dive into the 1,815-page bill uncovers, of all things, cannabis banking reform legislation.
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May 16, 2020
Weed sales are skyrocketing. Check out what it's like to get it delivered to your door during the pandemic.
Cannabis sales have weathered the coronavirus pandemic well despite stay-at-home orders around the country. In fact, sales have been booming in states with recreational cannabis markets such as California, Colorado, Oregon, and Alaska, according to Reuters. Legalized states have seen a 50% increase in business across the board with some states such as Michigan getting a 57% increase in sales, according to The Detroit News. Most legalized states, such as California, categorized medical and recreational marijuana sales as essential, according to a report by Market Watch. Some states, like Massachusetts, only deemed medical marijuana as essential and shut down recreational stores. Nevada is only allowing delivery while Maine recreational stores have yet to open since legalization, the report said. While the cannabis industry has fared well during the pandemic, the process for customers purchasing marijuana has changed as delivery becomes more popular, and social distancing is required inside shops. Read on to see what visiting a dispensary or ordering delivery is like during the pandemic.
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This week, the U.S. House included legislative language from the SAFE Banking Act in new legislation aimed at economic relief amid the coronavirus pandemic. Elsewhere, in Montana, a campaign to place an adult-use cannabis legalization initiative on the state’s 2020 ballot kicked off a signature drive despite coronavirus-related setbacks. Here, we’ve rounded up the 10 headlines you need to know before this week is over. Federal: The U.S. House will include legislative language from the SAFE Banking Act in the next relief bill aimed at economic relief amid the coronavirus pandemic. Thus far in the current economic crisis, cannabis businesses have been largely excluded from such relief, as the ongoing Schedule-I status of the plant has barred any federal stimulus aid or small business loans from hitting the industry—even as cannabis business around the U.S. have been deemed “essential” in this difficult moment. The National Cannabis Industry Association (NCIA) has recommended that the Drug Enforcement Administration (DEA) should not be part of the cannabis research application process as part of the NCIA’s comments on the DEA’s proposal to advance cannabis research. Among other reasons, the NCIA highlights the DEA’s sluggish processing of current applications to explain why the law enforcement agency is not the right fit to lead cannabis research initiatives. Montana: After losing a court battle to collect signatures electronically, New Approach Montana kicked off a statewide signature drive last weekend to get two complementary adult-use cannabis legalization measures on the state’s 2020 ballot. “As our state reopens for business, we must also reopen for democracy,” the campaign’s political director, Pepper Petersen, said in a public statement. Massachusetts: The Cannabis Control Commission plans to launch its adult-use cannabis delivery application May 28, as some regulators have said that delivery is a priority during the COVID-19 pandemic. The licenses will be granted to social equity and economic empowerment applicants for at least the first two years in an effort to bolster industry participation from businesses owned by minorities, those with prior cannabis-related convictions and individuals who have been disproportionately impacted by the war on drugs. Missouri: An investigation into the roll out of Missouri’s medical cannabis program has reached Gov. Mike Parson’s office, as a House committee seeks records involving Parson’s chief of staff, chief operating officer and a longtime adviser. The Missouri House Special Committee on Government Oversight sent a letter to the Department of Health and Senior Services May 7, requesting records of the department’s interactions with cannabis industry stakeholders and insight into how key decisions were made in the medical cannabis licensing process. Read more
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Democrats' $3 trillion proposal for yet another coronavirus relief bill includes measures that would allow state-legal marijuana businesses to access financial services — a provision that has been ridiculed by some on the right but hailed by those in the marijuana industry as welcome relief for their "essential" businesses. The cannabis-related language, which appears on pages 1,066-1,091 of the massive 1,815-page legislation, mirrors the Secure and Fair Enforcement Banking Act – known as the SAFE Banking Act – which passed the House in September with bipartisan support but has languished in the Senate. The bill also includes productions for hemp and CBD manufacturers, which still exist on shaky legal ground in the U.S. Essentially, the cannabis-related provisions would allow banks and other financial institutions to work with state-legal marijuana businesses and businesses that provide services to the marijuana industry without fear of federal retaliation — a specter that has forced such enterprises to work mainly in cash for years. "It's a great step forward and it will definitely increase industry access to banking," Tom Gavin, the CEO of CannaTrac, a company that provides cashless financial services to state-licensed cannabis businesses, said. The move was also hailed by Rep. Ed Perlmutter, D-Colo., one of the biggest boosters of the SAFE Banking Act, who said in a tweet that "cannabis businesses & their employees ... need relief just like any other legitimate business." Gavin noted, however, that the Democrats' bill would not reschedule marijuana — keeping it illegal on a federal level and likely excluding cannabis companies from government programs like the popular Paycheck Protection Program (PPP).
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