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
Atria To Host Webcast of 2020 First-Quarter Results
Altria Group, Inc. (Altria) (NYSE: MO) will host a live audio webcast on Thursday, April 30, 2020, at 9:00 a.m. Eastern Time to discuss its 2020 first-quarter business results. Altria will issue a press release containing its business results at ...
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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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April 17, 2020
Allowing marijuana businesses to open bank accounts could be part of coronavirus stimulus
Legislation allowing banks to provide credit cards and checking accounts to legal cannabis businesses has been stalled in the Senate. But members of Congress are looking to add its provisions to the next coronavirus stimulus bill, NJ Cannabis Insider has learned. The argument is that many patients who use legal marijuana are among the most vulnerable to contracting COVID-19, and forcing them to deal in cash also puts employees at risk. “Everything has to be capable of mitigating the spread of the coronavirus and mitigating the economic harm of the pandemic,” said Justin Strekal, political director for NORML, the National Organization for the Reform of Marijuana Laws. The effort is taking place as supporters of ending the federal ban on marijuana seek to make legal cannabis businesses eligible for Small Business Administration loans. The $2 trillion stimulus law included a $349 million paycheck protection program to encourage small businesses to retain their employees, but the cannabis businesses were excluded. “We want to pass the SAFE Banking Act, but we also know SAFE Banking alone won’t be enough to give cannabis businesses the relief they need like other businesses,” said Rep. Earl Perlmutter, D-Colo. “I plan to keep pushing to ensure the cannabis industry has the ability to be eligible for SBA relief funds during this COVID-19 crisis. I have spoken to House leadership about this matter and I’m hopeful in one of the next two packages we can get this done.” Perlmutter, the chief sponsor of the banking bill, is pushing for its inclusion in the stimulus bill, according to another member of Congress speaking on condition of anonymity. After all, asking the marijuana businesses eligible for the loans raises the question of how they would get the money, since most do not have bank accounts and an SBA official isn’t going to walk in the door with a paper bag of dollar bills. “If we get SBA access but don’t get banking, how can SBA distribute money to someone who is unbanked?” Strekal said. “Are they going to get $10,000 cash?”
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April 17, 2020
Virginia Gov. Signs Bill to Regulate CBD Products as Food
Gov. Ralph Northam recently signed a bill that would define hemp extract, such as CBD, as food and usher in state regulations on these products. Senate Bill 918, patroned by Sen. David Marsden, D-Fairfax, will help guide the budding industrial hemp industry in Virginia by regulating facility conditions and requirements for the production of hemp-derived products intended for human consumption. This bill also allows the Virginia Department of Agriculture and Consumer Services to regulate and enforce certain standards for hemp extract, including labeling requirements, identifying contaminants and batch testing.
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The coronavirus crisis has abruptly forced all Americans to reexamine our priorities. Entire sectors of the economy have been shuttered as we reduce contact between people to flatten the curve and reduce the death toll. Elected officials and regulators, in particular, must reevaluate a wide range of government policies to ensure a swift, coordinated and appropriate response to the pandemic. One public policy that offers no benefit whatsoever during this time of crisis is our nation’s failed prohibition of cannabis. As governments work to minimize the negative impacts of COVID-19, it’s clear that punitive cannabis laws and unnecessarily strict regulations serve as far more of a hindrance than a help. Some police departments and prosecutors have already determined that prosecuting low-level offenses such as cannabis possession is counterproductive and puts police, prosecutors and the public at risk. For example, Baltimore State’s Attorney Marilyn Mosby ordered her staff to dismiss pending criminal charges against anyone arrested for drug possession and several other nonviolent offenses. Meanwhile, news reports from other jurisdictions indicate that arrests for cannabis possession have continued, increasing the risk of exposure to coronavirus both for cannabis consumers and enforcement personnel and undermining health experts’ advice regarding the need for social distancing. It would be a disaster if the coronavirus becomes prevalent in America’s overcrowded jails and prisons. Criminal justice reform organizations have called for the release of low-risk inmates such as those convicted of cannabis offenses. This step should be taken as swiftly as possible to protect all staff and inmates at correctional facilities. In the 11 states where cannabis is already legal for adults, interaction among law enforcement and consumers has already dropped considerably, so fewer steps are likely to be needed. The other 39 states should immediately suspend enforcement and prosecution of cannabis laws for the duration of the national emergency. Not only does it protect public health, it also avoids wasting limited law enforcement and court resources during a crisis. We must also consider the challenge faced by roughly three million medical cannabis patients across the U.S. Many have vulnerable immune systems due to age or a serious medical condition, putting them in the high-risk category with regard to COVID-19. Although medical cannabis is legal in 33 states, many states have restrictive policies that frustrate patients who are seeking to avoid exposure to the coronavirus. For example, some states forbid deliveries of medical cannabis and others maintain criminal penalties against home cultivation. Fortunately, several states have already adopted emergency measures to ensure that patients are protected. New York, Iowa and other states have designated medical cannabis dispensaries as essential services to ensure their continued operation during the crisis. Louisiana took swift action to allow deliveries, and Michigan is allowing curbside pickup at dispensaries so patients do not have to enter the building. A few states have begun allowing patients to renew their certifications via telemedicine rather than continuing to require a visit to a doctor. These are all worthy reforms that should be enacted in all states that have legalized medical cannabis. Finally, as we dare to look beyond the crisis, it seems clear that states with legal cannabis markets will have a significant advantage over other states as the economy recovers from this pandemic. More than 200,000 Americans already work in the state-legal cannabis industry, demonstrating that cannabis can be an important job creator and driver of economic development in addition to being sensible public policy and a source of substantial tax revenue.
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The U.S. Department of Agriculture (USDA) announced on Thursday that it has approved two additional state hemp regulatory plans, as well as three more tribal proposals. Florida and Kansas are the latest states to have their plans federally accepted, raising the number of state approvals so far to 16. The Blackfeet Nation, the Cayuga Nation and the Sac & Fox Tribe of the Mississippi in Iowa also had their plans signed off on. USDA has been accepting plans on a rolling basis since hemp and its derivatives were federally legalized under the 2018 Farm Bill. Last month, South Carolina and West Virginia joined the list of states where proposed regulations for the crop were approved. “After months of incorporating feedback from the public, growers, and industry stakeholders, we are thrilled that Florida’s hemp industry officially begins now,” Florida Agriculture Commissioner Nikki Fried said in a press release. ” I thank the USDA for their swift review and approval of our state hemp program.” “By working closely with our farmers, processors, retailers, and consumers, Florida’s state hemp program will become a model for the nation, will set a gold standard for this emerging industry, and will create billions in economic opportunity for Florida,” she said. “As our economy deals with the impacts of COVID-19, this approval will give our agriculture industry a new alternative crop for many years to come.” Jeff Ochampaugh of the Kansas Department of Agriculture said in a release that the development is “great news for Kansas, as it moves us one step closer to establishing a commercial program for industrial hemp.” He added that it’s “important for Kansans to understand, though, that our program won’t be active until the regulations are adopted.” USDA said in a notice that it “continues to receive and review hemp production plans from states and Indian tribes.” While the agency released an interim final rule for a domestic hemp production program last year, industry stakeholders and lawmakers have expressed concerns about certain policies it views as excessively restrictive. The department announced in February that it will temporarily lift two provisions that the industry viewed as problematic. Those policies primarily concern testing and disposal requirements. The department declined to revise the THC limit, however, arguing that it’s a statutory matter that can’t be dealt with administratively. Agriculture Secretary Sonny Perdue has said on several occasions that the Drug Enforcement Administration influenced certain rules, adding that the narcotics agency wasn’t pleased with the overall legalization of hemp.
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April 15, 2020
Missouri Activists Officially End 2020 Marijuana Legalization Campaign Due To Coronavirus
A campaign to legalize marijuana in Missouri is officially ending its bid for the November ballot due to the coronavirus outbreak. While activists acknowledged last month that there was “no practical way” to collect enough signatures to qualify for the ballot since in-person collection was suspended as officials have shuttered many businesses and encouraged social distancing measures, they teamed up with other campaigns to explore alternative avenues to success such as pushing for electronic signature gathering. But Missourians for a New Approach ultimately determined that it wasn’t feasible and they would have to aim to for a future election cycle. “It was always a long shot, especially in Missouri, but we believed in the importance of exploring every avenue, given the strong support in the state for cannabis legalization,” Graham Boyd, director of the national New Approach PAC, which was a major funder of the state effort, wrote in an email to supporters on Tuesday. “New Approach PAC covered the cost of all the legal work exploring the e-signature alternative in Missouri, but now with less than four weeks left before the constitutionally mandated deadline, we’re simply out of time and options,” he said. “The 2020 cannabis legalization campaign in Missouri cannot continue.” A total of 160,199 valid signatures from registered voters were needed in order to qualify the measure for this year’s ballot, and as of last month, the campaign said it had collected about 80,000 raw signatures. It’s uncertain how many of those would have been deemed valid. Activists officially started signature gathering for the Missouri campaign in January. The proposed initiative would have allowed adults 21 and older possess and purchase cannabis from licensed retailers and cultivate up to three plants for personal use. Additionally, it would have imposed a 15 percent tax on marijuana sales, with revenue going toward veterans services, substance misuse treatment and infrastructure projects. Individuals with cannabis convictions would have been empowered to petition for resentencing or expungements. “We’ve seen tremendous excitement from across the state for ending the prohibition of adult-use marijuana,” John Payne, campaign manager for Missourians for a New Approach, told Marijuana Moment. “Missourians support taxing and regulating marijuana in order to give law enforcement additional resources to focus on serious crime. Eleven other states, including our neighbors in Illinois, are currently reaping the tax revenue from regulated marijuana that we know would be so beneficial to the Show-Me-State.”
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