Florida Supreme Court Blocks Cannabis Legalization Bid

4/23/2021

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The Florida Supreme Court on Thursday ruled 5-2 that the proposed recreational cannabis legalization ballot initiative would run afoul of federal law and that constitutional amendments “cannot unequivocally ‘permit’ or authorize conduct that is criminalized under federal law,” the Miami Herald reports.

The court described the ballot initiative by Make it Legal Florida as “affirmatively misleading” in that it did not to enough to inform voters that cannabis would remain federally prohibited despite state legalization.

The case was brought to the court by Attorney General Ashley Moody, who had asked the justices to advise whether the initiative would be suitable for a future ballot. In a statement following the decision, Moody’s office thanked the court for “their time and attention” to the issue and that the office respects the decision.

“Floridians must fully understand what they are voting on when they go to the ballot box,” the statement said.

Juan-Carlos “J.C.” Planas, an attorney who specializes in state law dealing with constitutional ballot language, explained to the Herald that the court essentially argued that activists should have found a way to explain how the proposal would run in opposition to federal law – along with all of the other legalization details – in the summary of the question, which is limited to just 75 words.

“I almost gagged reading [the opinion]. I don’t care about the marijuana, per se. My issue is, how the hell do you craft a constitutional amendment now?” – Planas to the Herald

Ben Pollara, who ran the successful 2016 medical cannabis campaign, told the Herald that the decision represented the court’s shift to the right as Republican Gov. Ron DeSantis has appointed three of court’s justices; all of which were in the majority on the decision. The state House and Senate also filed briefs opposing the reforms.

“Floridians would legalize marijuana tomorrow if given the opportunity to do so, but that’s clearly not what Tallahassee wants,” Pollara said to the Herald.

Make it Legal Florida, supported by the Florida medical cannabis industry, had raised $8.2 million for the initiative and gathered more than 556,000 signatures out of the 891,589 needed for the measure to make the 2022 ballot. It would have required 60% of voter approval to be added to the state constitution.

The campaign would have to redraft the proposal from scratch in order to have a chance at making a future ballot.

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Court Rejects Harborside Appeal in 208E Legal Challenge

4/23/2021

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The U.S. Circuit Court of Appeals on Thursday rejected the 280E appeal from Oakland, California-based Patients Mutual Assistance Collective Corp – or Harborside Health Center – ruling that federal cannabis prohibition prevents legal cannabusiness from excluding or deducting taxable income as business expenses, Reuters reports.

The company had argued previously that 280E is unconstitutional, running afoul of the 16th Amendment, which allows for income taxes. Attorney James Mann, of Greenspoon Marder, said in June that the tax code – which is used by the federal government to tax proceeds from illicit drug sales – “results in a tax that’s not on income, it’s not an income tax, so therefore it’s unconstitutional.”

All of the courts so far have disagreed with Mann’s assessment.

In 2018, the U.S. Tax Court ruled against Harborside, describing the firm as “a giant drug trafficker, unentitled to the usual deductions that legitimate businesses can claim” because cannabis remains federally illegal.

Earlier this year, the Tax Court ruled that medical cannabis operator San Jose Wellness, a subsidiary of Harborside, is liable for $4.2 million in taxes because federal law prohibits cannabis companies from claiming depreciation and charitable contribution deductions. Judge Emin Toro cited the Patients Mutual Assistance case in his decision. Additionally, Toro said that just because San Jose Wellness sold other, non-cannabis goods, such as t-shirts, and services, such as acupuncture, it does not qualify for any tax breaks.

In Thursday’s unanimous decision, Circuit Judge Daniel Bress also determined that Patients Mutual Assistance had failed to preserve for appeal its constitutional challenge to the tax law and its claim that it was entitled to exclude business costs under a U.S. Treasury regulation.

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Montana’s Crow Tribe Approves Adult-Use Cannabis Rules

4/23/2021

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The Montana-based Crow Tribe last week approved an ordinance to oversee its own cannabis cultivation and sales, and allow the tribe to benefit from the proceeds, the Associated Press reports. The ordinance – approved on April 16 – will allow the tribal government to sell cannabis products and sets the sales tax at 7%.

Crow Tribe Chairman Frank White Clay told the Billings Gazette that while “coal was the name of the game for the tribe for a while,” the tribe is diversifying its economy “for good business.”

“We’ve had medical marijuana for quite some time, and the Crow Tribe is not isolated … The reservation itself is more accepting (of it), and we’re just moving with the times.” – Clay to the AP

Following the legalization of medical cannabis in Montana, the state’s tribes have taken independent approaches to the reforms. In 2018, the Blackfeet Nation decriminalized possession of medical cannabis, while the Fort Peck Tribal Council completely banned cannabis possession of any kind by its members.

Thor Hoyte, legal counsel for the Crow Tribe indicated that the tribe would run its cannabis program parallel to the state, despite its sovereignty and not needing state permission.

“Not only are we paralleling the state in terms of carry and transaction limits. The Crow Tribe is going further … in terms of the labeling, testing and that sort of rubric,” he said to the Independent Record.

Hoyt also noted that the industry would be a potential jobs driver in the Nation, which has a 75% unemployment rate.

During the 2020 General Election, Montana voters approved legalization 58%-42%; however, the reforms have been met with resistance by lawmakers who in January rejected a $1.35 million budget proposal for implementing the program. In February, Republican Rep. Bill Mercer introduced legislation to delay adult-use cannabis sales in the state until 2023, citing a “massive expansion of government” in just nine months.

Anti-legalization group Wrong for Montana has filed a lawsuit challenging the measure claiming the financial allocation provisions in the measure violate the state constitution.

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Virginia Civil Rights Groups Skip Legalization Bill Signing Ceremony

4/23/2021

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In a show of solidarity with Chelsea Higgs Wise and her advocacy group Marijuana Justice, a host of Virginia civil rights groups skipped Gov. Ralph Northam’s (D) adult-use cannabis bill signing ceremony on Wednesday, the Richmond Times-Dispatch reports.

The action was taken by the ACLU of Virginia, Justice Forward Virginia, and RISE for Youth in response to Higgs Wise’s group — which was a key influencer in the effort to pass the historic legislation — not being invited to the event.

“From the beginning, Marijuana Justice has been instrumental in expanding our coalition’s ability to center the voices of directly impacted people in the policymaking process. One of our key values is to create an inclusive space around marijuana legalization, where many communities have a seat at the table. In defense of that principle, none of us attended the signing.” — Statement by Virginia ACLU and RISE for Youth, via the Richmond Times-Dispatch

In an interview, Higgs Wise told the Dispatch that Marijuana Justice had advocated for a study into legalization by the Joint Legislative and Joint Legislative Audit and Review Commission. The administration met with Marijuana Justice while the bill was being drafted and included some of the group’s suggestions; additionally, the governor’s office cited data presented by Marijuana Justice showing that, even through cannabis decriminalization, Black Virginians were continuing to be drawn into the criminal justice system over simple possession.

“I just would have been excited to be part of the event because we worked really hard,” Higgs Wise said of the snub.

“We are worried about a continued fight to be involved in the legalization process and the creation of the new market,” she told the Dispatch.

Alena Yarmosky, a spokesperson for the governor, said, “So much work went into this bill. Unfortunately we weren’t able to include many of the people we would have liked to be there — including multiple activists and legislators. We hope folks were able to participate virtually via livestream, as we’ve been doing throughout this pandemic.”

Virginia was the first state in the South to pass adult-use cannabis legalization. The new rules take effect this July, with a regulated marketplace expected by 2023.

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Biden’s Cannabis Reform Plan Still Involves Schedule 2 Status

4/22/2021

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White House Press Secretary Jen Psaki fielded many cannabis-related questions this week while the nation — including top congressional lawmakers — celebrated the April 20 cannabis holiday on Tuesday.

While a staggering majority of Americans now support the descheduling and federal legalization of cannabis, and nearly half the country’s population is living in states with legal cannabis access, Psaki’s comments revealed that the White House appears obstinate in its wary approach to federal reforms.

“The president supports leaving decisions regarding legalization for recreational use up to the states, rescheduling cannabis as a Schedule II drug so researchers can study its positive and negative impacts and, at the federal level, he supports decriminalizing marijuana use and automatically expunging any prior criminal records. He also supports legalizing medicinal marijuana….” — White House Press Sec. Psaki, to reporters on Tuesday

When asked specifically whether Biden would sign a federal legalization bill if it were to reach his desk, Psaki would not answer directly and replied, “I just have outlined what his position is, which isn’t the same as what the House and Senate have proposed, but they have not yet passed a bill.”

Psaki also called the legalization/expungement query a “legal question” and said she defers to the Department of Justice.

Revisiting the issue on Wednesday, New York Post reporter Steven Nelson noted to Psaki that rescheduling to Schedule II would not honor President Biden’s Democratic Primary promise to expunge convictions and release prisoners who are currently locked up — some with life sentences — on cannabis charges.

“That’s right,” she said, “but it addresses things moving forward, though, which is important and important to many advocates.” However, the cannabis industry and countless cannabis advocates have suggested for years that a Schedule II rescheduling would be improper because this would actually push control over cannabis manufacturing and product development to the pharmaceutical sector, which would only stand to exacerbate the injustices of cannabis prohibition.

In a nation that is grappling with the ongoing issues of racial justice and the over-policing of Black and Brown communities spurred largely by the “war on drugs,” and where there are still thousands of people serving harsh prison sentences for nonviolent cannabis-related convictions, President Biden’s apparent steadfast commitment to a “modest” approach to cannabis reform is painfully out-of-touch for an administration that presents itself as progressive.

 

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Cova Finds 4/20 Cannabis Holiday Retail Traffic Up 10% In 2021

4/22/2021

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DENVER, CO / APRIL 21, 2021 — Cannabis retail traffic was up 9.5%, and sales rebounded 8.4% year-over-year on 4/20, according to Cova Software, the largest Cannabis Point of Sale (POS) company in North America. While major outages plagued several big POS systems, Cova reported its 4th straight year of perfect uptime (100%) and benchmark transaction speeds (1.4 seconds). During peak hours on 4/20, Cova was processing 380 cannabis transactions per minute, and handled over 180,000 transactions for the day across 1,200+ dispensaries.

April 20th, the “Cannabis Holiday” has historically marked the marijuana industry’s biggest sales day of the year. However, when looking at the past 3 years, 4/20 fell on distinctively different climates. 2019 was a normal (non-COVID) year in which dispensaries in Canada and legal US States fought hard to be open by 4/20, and to procure the maximum amount of inventory to meet the surge in demand. They were rewarded with the biggest cannabis sales day ever.

Cannabis Retail Sales Bounce Back Despite Ongoing Pandemic

Last year saw a COVID shutdown of all retail businesses in March, followed by various re-openings of dispensaries by state or province in April. There were also restrictions on how cannabis stores could sell: via online order and curbside pickup, delivery only, and/or limited visitors into the dispensary. 4/20 2020 proved to be a better than average day but didn’t set any sales records.

4/20/21 was nowhere near a return to normalcy, as some municipalities were locked down for non-essential travel, while others were open for business but with 6-foot restrictions in place. Nevertheless, the industry saw an 8.4% increase in sales over 4/20/20, despite several US POS systems crashing amid the higher volume. This forced nearly 2,000 dispensaries to turn customers away for hours.

Cova CEO Gary Cohen, summarized 4/20/21, saying “Preparations for 4/20 last year were tentative, as our industry was just being recognized as essential. The supply of cannabis products was plentiful, but demand was a big question. It turned out there was huge demand from consumers and patients, and because of COVID relief checks in April, they had money to spend in dispensaries. This year, the relief was not timed around 4/20, but employment is higher, and access to stores easier. Overall, 2021 was a great 4/20.”

Based on Cova data, the daily lift in sales on 4/20 over average March daily sales has been: 2019 +240%, 2020 +78% and 2021 +89%.
The average invoice per transaction in the US was $76.26 USD, an increase of 9% over 2020. For Canada the average invoice was $52.48 CAD, a decrease of 2% from a year earlier. Dispensaries across North America saw 9.5% more traffic through their store this year, which is attributable to this April’s greater freedom to visit retailers in the US. In Canada, a surge in COVID cases, lag in vaccines, and more lockdowns by provinces created challenges for retailers. Despite that, Canadian cannabis stores processed 5% more transactions on 4/20.

A Thousand New Stores Celebrate their First 420

Year over year, approximately 1,000 new dispensaries opened (+20%) in North America. Several geographies greatly expanded dispensary counts and access to cannabis in the past 12 months, namely Ontario, California, Oklahoma, and Missouri (a new medicinal cannabis state in 2021). The better climate this year, and impact of these markets, helped to significantly propel overall sales for the cannabis holiday.

About Cova

Cova designs retail software solutions specifically for the cannabis industry and has rapidly become the #1 dispensary Point-of-Sale and Inventory Management solution in North America. Cova’s award-winning platform helps cannabis retailers simplify compliance, streamline dispensary operations, and increase profits through sophisticated inventory management, mobile dashboards, and seamless integrations with the most valued tech solutions in cannabis retail. Cova currently powers 1,200+ dispensaries and counting and is projected to process $3B in cannabis sales in 2021.

www.covasoftware.com.

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CBD Brand Sues FedEx Over Confiscated Hemp Shipment

4/22/2021

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New York City-based Green Angel CBD is suing the city and FedEx after police intercepted a hemp shipment destined for the company in 2019, LLNow reports. In addition to the City of New York and the shipping company, the lawsuit names one of FedEx’s drivers and two NYPD officers, claiming that they are all responsible for the missing shipment which was valued at $17,000.

Oren Levy, the owner of Green Angel, had ordered 106 pounds of hemp products from Vermont-based Fox Holler Farms. In the lawsuit, Oren, along with his brother Ronen, said they expected to make a $60,000 to $100,000 profit through sales derived from the shipment.

Oren Levy had redirected the FedEx shipment redirected to his brother’s residence in Brooklyn because he was hospitalized when it was due to arrive at Green Angel. However, Oren received a notification that the shipment was seized by the Vermont Police Department after FedEx and its truck driver notified authorities of packages containing an illegal substance. Vermont police subsequently cleared the shipment, deeming the paperwork lawful and apologizing for the inconvenience, according to the lawsuit outlined by LLNow.

Ronen was arrested and held for 24 hours. In December 2019, the Brooklyn District Attorney’s Office dropped all of the charges against Ronen.

Green Angel is suing FedEx for negligence in making a false claim and giving up the packages to the police. It is also claiming negligence on the part of the city for “creating a media spectacle of the confiscation” and publicizing “the incident on a variety of public platforms including but not limited to Facebook, Twitter, and Instagram,” the lawsuit states. Additionally, the lawsuit claims that the city was negligent in the hiring, training, and retaining of the officers involved in the bust, describing the city’s hiring practices as one that leads to officers “lacking the intellectual capacity and moral fortitude to discharge their duties.” The lawsuit said the officer’s conduct in the seizure was “inappropriate, unlawful and improper.”

The city and FedEx have both denied wrongdoing.

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Dama Financial, Leading Provider of Cannabis Banking & Financial Solutions, Finishes $12.6 Million Growth Equity Raise

4/22/2021

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Dama will leverage the new round of investment to accelerate its already impressive growth, continue to address the lack of financial service products being offered to the cannabis industry, recruit top talent, and scale the business with the backing and support of its investors.

South San Francisco, CA, April 21, 2021 — Dama Financial (“Dama”) the premier provider of access to banking and payment solutions through its FDIC-insured banking partners for the rapidly growing legal cannabis industry, today announced the completion of its $12.6 million Series B funding round, bringing Dama’s total funding to approximately $24 million to date. The round was led by a group of strategic new investors. Currently serving over 7% of the legal cannabis businesses in California, operational in 12 states and with over 50,000 consumers with digital wallets in the United States, Dama has processed over $2 billion in transaction value since inception.

“In one of the fastest-growing industries in the world, Dama is bringing desperately needed financial services to businesses and consumers alike that are safe, secure, compliant and efficient,” said Anh Hatzopoulos, CEO and Co-founder at Dama. “We have spent four years building a platform to enable safe, compliant financial services for cannabis businesses and now is the time to take Dama to the next level.”

“Dama has brought together the right team and technology that will position them as a clear payment solutions leader in the cannabis industry for years to come,” said Dan Englander, of Ursula Investors. “Dama continues to innovate solutions for the serious payments problems faced by the industry and we are excited to see that accelerate. ”

Since November 2020, six new states have passed legalization measures for cannabis and a record-high percentage of Americans now support legalization. The cannabis industry is one of the fastest-growing in the world with the global cannabis market expected to hit $47 billion and U.S. sales of legal cannabis expected to quintuple by 2025. According to Arcview Research, legal cannabis sales in 2019 grew by 46% to $14.8 billion, which represents the highest annual rate of growth to date. Dama’s payment solutions solve complicated banking problems for cannabis dispensaries and facilitate seamless consumer transaction at mobile points of sale.

Advisors

Waller Helms Advisors acted as exclusive financial advisor to Dama Financial in this round of funding

To learn more, visit: https://www.damafinancial.com/index.html.

About Dama
Based in South San Francisco, California, Dama is the cannabis industry’s leading provider of access to banking and financial services, powering safe and secure depository solutions for top licensed cannabis operators throughout the United States as well as electronic consumer payment solutions. The Company was founded in 2017 by a team of world class FinTech and Payments executives to provide high risk industries with critical access to fundamental financial solutions.  Dama has leveraged its experience in other unbanked categories to develop solutions, driven by its proprietary technology platform, capable of navigating a complex web of regulatory and compliance requirements.  The Company’s expansive product set, including Premier Business Banking, Paytender and CashToTax, fueled 350% top line growth in 2020.

To learn more, visit https://www.damafinancial.com/index.html.

Contact Information
info@damafinancial.com
877-401-3262

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Court Upholds Firing of USPS Employee Accused of On-Duty Cannabis Purchase

4/22/2021

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The U.S. Court of Appeals for the Federal Circuit has upheld the removal from federal service of a Postal Service (USPS) employee who in 2017 appeared to have purchased cannabis from the postal truck of a co-worker while on duty, according to an SHRM report.

The employee, a city carrier at Chicago, Illinois’ Dearborn Station was removed following a Postal Service Office of Inspector General (OIG) investigation that found that a co-worker, another letter carrier, was selling cannabis from a Postal Service vehicle. The employee and six other letter carriers admitted that the deals took place, but the removed employee denied the allegations. Five of the seven other employees who had been removed over the accusations appealed their terminations through grievance arbitration and the arbitrators settled from removal to long-term suspensions, and the employees were permitted to return to work without back pay, the report says.

Following appeals to the U.S. Merit Systems Protection Board and an administrative judge, the employee appealed to the Federal Circuit appeals court, argued that USPS had failed to prove that he had bought cannabis while on duty and in uniform, and that his removal was inconsistent with the arbitrators’ decisions to reduce the penalties imposed on his co-workers.

The Federal Circuit found the evidence, which included video, sufficient to uphold the penalty, as the standard was not proof beyond a reasonable doubt but rather a preponderance of the evidence. The court decided that the arbitration decisions were not binding on the court and noted that his colleagues took responsibility for their actions, which supported their lesser punishment.

The removed employee had worked for USPS since 1989. Cannabis was legalized in Illinois in 2019.

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National Cannabis Risk Management Association Launches New Insurance Brand

4/22/2021

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The National Cannabis Risk Management Association (NCRMA) is offering property, general premises liability, and product liability coverage to cannabis businesses through its captive-owned insurance brand Trichome.

Rocco Petrilli, chairman of the NCRMA, said the launch of the Trichome is “a direct response” to its members expressing “need for fairly priced and risk management-based insurance coverage to a rapidly emerging and evolving industry.”

“We believe that effective risk management practices are essential for moving the cannabis industry forward in a sustainable way. The NCRMA is 100% focused on risk management because risk management without insurance is incomplete and insurance without risk management is illogical. Trichome is the first cannabis-centric insurance solution of its kind, and it’s going to change the future of this industry.” – Petrilli in a press release

In 2019, the organization announced the creation of a casualty insurance program.

The NCRMA said that “only a few” insurance providers are currently offering products to the cannabis industry because of federal prohibition – and the products that are offered carry high premiums and “inadequate coverages and services.”

The organization said its insurance products will include “accurately priced” premiums and other advantages including a “holistic approach to underwriting,” appointed brokers vetted by criteria established by NCRMA members, products birthed by cannabis risk management, and short-term profit-taking replaced by long-term stability and reward.

The non-profit NCRMA was founded in 2018.

A bipartisan federal bill introduced last year would have ensured the industry had access to insurance products. The proposal was not taken up by either chamber of Congress.

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Cannabis Lounges & Delivery Coming to Denver

4/21/2021

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The Denver City Council this week gave final approval to new cannabis delivery and consumption lounge regulations, Westword reports.

The rules were approved unanimously after two years of deliberating the new regulations with industry stakeholders and Denver community representatives (Colorado lawmakers approved statewide delivery and social use rules in 2019 but that law requires local municipalities to opt in to such a program).

The programs are expected to be fully implemented by July.

“You know cannabis has arrived when marijuana bills pass through Denver City Council with literally no comment. That never would have happened in the old days.” —  Truman Bradley, director of the Marijuana Industry Group, via Westword

Under the new delivery rules, licensed businesses will be allowed to conduct deliveries until the dispensary closing time of 10 pm but orders can only be received at residential addresses. People placing the orders will have to show ID and deliveries will be limited to just one ounce of flower, eight grams of concentrate, or edibles containing up to 800 milligrams of THC.

The city’s new social use regulations will allow more types of businesses to apply to become a cannabis lounge and will legalize indoor smoking, micro-sales, and mobile lounges, although the businesses will still require a 1,000-foot buffer between themselves and any daycare, drug treatment center, park or other city-owned recreation venues.

Additionally, the rules reserve all of Denver’s new cannabis business licenses for applicants who qualify under a social equity designation until 2027, according to the report.

The shift represents Denver’s most significant overhaul of cannabis regulations since the 2014 opening of Colorado‘s first-of-its-kind adult-use cannabis marketplace.

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Poll: 1/4 of U.S. Adults Are Current Cannabis Consumers

4/21/2021

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A new poll by YouGov and Sunnyside, the national retail dispensary brand of Cresco Labs, found 25% of respondents indicated they had used cannabis within the last year, with another 23% saying they had used cannabis for the first time over the previous 365 days.

A 2018 survey by the National Institutes of Health found 16% of U.S. adults were current cannabis consumers.

Additionally, the survey found 44% of cannabis-consuming parents with children under 18-years-old tried cannabis for the first time over the past year, along with 43% of respondents 65-and-older.

Cris Rivera, senior vice president of customer experience at Cresco Labs, said the poll was designed to “learn how current conditions have impacted consumer attitudes and cannabis consumption behaviors” ahead of 4/20.

“Whether it’s the stressors of a global pandemic, quality of life enhancement, or increased accessibility due to expanded state legalization, the industry is ready to meet these new consumers to introduce them to its precisely dosed lab-tested products, safe and professional packaging, and welcoming retail locations.” – Rivera in a press release

The poll also found some interesting regional cannabis attitudes and trends.

The majority of Northeast respondents surveyed, 64%, said they were most likely to use cannabis for anxiety or stress relief, while 74% of Midwestern cannabis consumers said if more people embraced cannabis the world would be a better place, with 32% of respondents in the South were more likely to use cannabis for intimacy.

Overall, 64% of cannabis consumers said that the world would be a better place were more people to embrace cannabis.

The YouGov/Cresco poll was conducted last month and included nearly 5,000 Americans.

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Birmingham, Alabama Pardoning Misdemeanor Cannabis Convictions

4/21/2021

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Birmingham, Alabama Mayor Randall Woodfin on Tuesday announced the city will issue blanket pardons for more than 15,000 misdemeanor cannabis convictions dating back to 1990. The action will cover closed convictions for second-degree unlawful possession of marijuana adjudicated in Birmingham Municipal Court but does not include open nor future cases.

“Here’s why we’re doing this – no one should be held up by a single past mistake. No one should be denied job opportunities or freedoms due to missteps from the past. No longer will these residents be bound to their past. They deserve a chance to be part of our work force, to provide for their families and to achieve success on their own. That new life starts rights here, today, with forgiveness and redemption.” – Woodfin in a press release

The announcement comes as the state Democratic Party said it would support medical and adult-use cannabis reforms in the state.

State Rep. Chris England, the state Democratic Party chair, said that legalization would not only serve the state “in producing hundreds of millions of dollars in revenues but is an important step in reducing arrests and expunging records.”

“Nearly 100 years of marijuana prohibition and criminalization has trapped thousands of Alabamians, mostly Black, in our broken criminal justice system,” he said in a statement. “Nobody should be sitting in jail for carrying a little bit of weed.”

England said the bill to legalize medical cannabis in the state – which has already passed the Senate – is “a good first step” but urged lawmakers to legalize cannabis for adult use before other Deep South states, such as Georgia and Mississippi.

“We can’t afford to let this opportunity go to another state in our region,” he said in an interview with AL.com.

The medical cannabis bill is expected to get a vote by the full House this session.

Last month, Virginia became the first southern state to approve broad cannabis reforms.

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Iowa Gov. Sued for Medical Cannabis Delays In Long-Term Care

4/21/2021

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A cannabis advocate in Iowa is suing Republican Gov. Kim Reynolds over the state’s delays in implementing a measure approved last year to allow medical cannabis use at long-term care facilities, KWWL reports. The bill requires an exemption from the Drug Enforcement Administration (DEA) but the state has not sought it, Carl Olsen alleges in the lawsuit.

“One of the answers that I got was that the governor was holding it up, and then later it became well we think the Biden administration – we want to wait to see what the Biden administration is going to do – so none of these answers gave me a definite explanation of what was going on.” – Olsen to KWWL

Reynolds signed the bill on June 29, 2020.

In 2019, Reynolds vetoed a bill that would have expanded the state’s medical cannabis program, citing concerns over the efficacy of cannabis and the “health and safety of Iowans.” The measure had passed through both legislative chambers with sweeping approval — 96-3 in the House and 40-7 in the Senate.

According to KWWL, Reynolds has indicated that the back and forth between the state and federal governments is a “threat to public safety.”

In February, state regulators said they were still evaluating the best way to proceed with the reforms.

A Des Moines Register/Mediacom Iowa poll published last month found 78% of Iowans support expanding the state’s medical cannabis program and 54% of adults supported legalization for recreational use.

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SAFE Banking Act Advances to Senate

4/20/2021

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The U.S. House of Representatives overwhelmingly approved the SAFE Banking Act on Monday afternoon, sending the landmark cannabis banking legislation to the Senate for consideration.

The House voted 321-101 in favor of the legislation, which was introduced by Rep. Ed Perlmutter (D-CO) last month and is co-sponsored by dozens of lawmakers. The proposal seeks to normalize the relationship between the cannabis and banking industries by removing federal penalties for banks that serve state-legal cannabis clients.

The vote also represents a significant bipartisan victory: all of the Democrats and about half of the Republicans who chose to cast a vote supported the legislation.

Steven Hawkins — founding member and Interim President of the U.S. Cannabis Council, a strategic alliance of top cannabis advocacy groups, businesses, and individuals working to legalize cannabis — applauded the bill’s passage in a statement:

“This is the first step on the road to achieving comprehensive reform on cannabis regulation, and the bipartisan support reflects support from voters across the nation. The SAFE Banking Act provides small businesses, including many minority and women-owned businesses — and their 321,000 employees — with urgently-needed banking services. It enhances public safety and economic growth. We thank Speaker Pelosi for bringing this measure to a vote and the bipartisan group of leaders behind this bill, including Representatives Ed Perlmutter, Steve Stivers, Nydia Velázquez, and Warren Davidson. The Senate should also immediately pass the bill.”

The bill moves next to the Senate, where Sen. Majority Leader Chuck Schumer (D) is expected to bring the legislation to the floor for consideration — a significant step that was never taken under former Senate Majority Leader Mitch McConnell (R), despite the bill’s bipartisan popularity.

Schumer, however, has hinted for months at an upcoming federal cannabis legalization proposal and it’s possible he could choose to prioritize that legislation over the House-approved banking bill.  In a Marijuana Moment interview after Monday’s vote, Schumer suggested that emphasizing banking reforms could undermine the broader legalization push.

President Joe Biden (D) — who supports cannabis decriminalization but not legalization — has not yet signaled whether he would sign the SAFE Banking Act into law, although Sen. Schumer has stated that congressional Democrats are aiming to move forward on the cannabis issue this year, with or without the president’s support. 

 

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Idaho Legalizes Industrial Hemp

4/20/2021

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Idaho Gov. Brad Little (R) on Friday signed the bill to legalize the production and transport of hemp, the Associated Press reports. Idaho was the last state to continue the prohibition of hemp following federal reforms enacted in 2018.

The bill took effect immediately but farmers cannot begin to cultivate crops until regulators develop rules – which is required under the law by 2022. It sets THC and THC-A limits in hemp at 0.3% and includes language banning all products containing any level of THC, including CBD products if they contain any of the psychoactive cannabinoid.

Under the bill, first-time violations for cultivating or transporting hemp over the legal limit can lead to a fine of up to $150, with fines up to $300 for second-time offenders. Violating the law three or more times within a five-year span could bring a fine of up to $1,000 and six months in jail.

The bill requires hemp transporters to allow law-enforcement searches and that they are allowed to “randomly select” up to 20 grams for compliance testing. The bill also allows for hemp research.

In 2019, Little signed an executive order allowing hemp to be transported through the state after at least two individuals were arrested and charged with drug violations while transporting crops. At the time, Little said he was “not opposed” to hemp but that state lawmakers “could not quickly respond” to the federal changes.

The Idaho Department of Agriculture is required to submit a plan for the program by September 1.

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Florida’s THC Caps Proposal Stalls in Committee

4/20/2021

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The legislation to impose THC caps on medical cannabis products in Florida appears to be dead for the session after the House Health and Human Services Committee declined to hear the bill during its Monday meeting, the Miami Herald reports.

Spencer Roach, the Republican bill sponsor, told the Herald that he doesn’t “see a path forward” for the bill but added that “nothing is really dead” until the end of the session.

Agriculture Commissioner Nikki Fried, the only statewide elected Democrat and a medical cannabis patient herself, credited the activists that rallied against the proposal and signed petitions opposing the caps.

“That’s what democracy looks like. When we get together, we hear from the people and legislation that would have hurt them is stopped.” – Fried to the Herald

A poll published last month commissioned by Florida for Care found 58% of respondents were against setting limits on THC products; 24% approved of the caps. That poll also found 76% support for the state’s medical cannabis program – a 5% increase from five years ago – with 17% disapproval.

In 2020, the state ranked third in the nation in cannabis sales, generating an estimated $1.3 billion.

The THC cap proposal had been advanced by two House committees prior to hitting the roadblock in the health committee. The Senate version of the bill had been referred to the chamber’s judiciary and appropriations committee last month but neither had taken any action on the legislation.

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Washington State Grapples with Drug Possession Laws

4/20/2021

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Despite Gov. Jay Inslee (D) having just commuted a number of drug-related sentences, the state Senate last week passed SB 5476 to reinstate criminal penalties for low-level drug offenses. Scheduled for an executive session on Wednesday, the Washington House heard testimony Monday on a striking amendment to SB 5476.

The governor’s executive action

In response to the Supreme Court’s February decision in State v. Blake that struck down the state’s felony drug possession statute, Gov. Inslee last week signed the commutations of 15 incarcerated people who were convicted of drug offenses, the Seattle Times reports.

Taylor Wonhoff, deputy general counsel for Gov. Inslee, told the Times, “We’re really focused on getting people who otherwise would be out of prison, but for the fact these since-invalidated convictions are keeping them there.”

Wonhoff said when they first compiled a list of eligible prisoners, they found roughly 70 people. By the time the governor was ready to act, however, most of them had already been released by local authorities, leaving just about two dozen prisoners. Additionally, in order for Inslee to commutate the sentences, the prisoners had to individually petition him.

“So what we did, was created a very basic petition … which basically says, ‘Here’s my name, here’s my signature, I want a Blake commutation,” Wonhoff said.

Lawmakers consider reestablishing drug penalties

Meanwhile, lawmakers’ push to re-legislate criminal drug penalties is shaping up to be more complicated than an ad hoc petition and the governor’s signature.

SB 5476 moved quickly through the state Senate but by the time it left for the House, the bill’s primary sponsor state Sen. Manka Dhingra (D) said she could no longer support the measure; she voted no on the bill because she argues that help should not come “through the criminal justice system.” But Sen. Jamie Pedersen (D) — who sponsored the striking amendment to add a misdemeanor penalty and diversion programs for first and second offenses — disagreed, saying the additional penalties will “provide services and treatment for people who are struggling with substance abuse disorders.”

SB 5476 received a hearing in Washington’s House on Monday.

According to presentations by Washington’s Office of Program Research (OPR), the bill would set the charge for knowingly possessing “a controlled substance, counterfeit substance, or legacy drug” to a misdemeanor. Furthermore, alternatives to arrest would be extended to mentally ill Washingtonians and those experiencing substance abuse disorders.

SB 5476 would require diversion on possession charges one and two, and recommend prosecutors seek diversion on the third and “subsequent” charges. The misdemeanor provision would sunset in 2023 and “personal” drug possession would then become a $125 civil infraction that could be waived if defendants submit to a substance abuse assessment.

According to the staff briefing, any money collected from these civil infractions would be used to reimburse cities and courts for the fiscal note associated with the legislation.

The bill would also create a substance abuse advisory committee tasked with developing a Substance Abuse Plan for the state by December 2021 and requires the plan to be implemented by December 2022.

The legislation requires each behavioral health administrative services organization — organized in ten regions around the state — and the Washington Health Care Authority to create “Recovery Navigator Teams” based on existing law enforcement diversion programs for intake, assessment, outreach, referral, and long-term case management for people experiencing substance abuse disorders.

Additionally, appropriate funding would be provided to grant programs to help low-income individuals who don’t qualify for medical services with treatment, expand recovery support programs (including education, housing, and employment services), increase funding for homeless outreach stabilization programs for those experiencing behavioral health issues, increase outreach to those experiencing mental health struggles while homeless, and provide more support for people dealing with co-occurring opiate and stimulant use disorders. Finally, by 2022 police would be required to offer classroom hours instructing officers on how to interact with people on substances and how to refer individuals to treatment programs.

Testimony

Many of the groups and individuals who testified during the public hearing acknowledged that the current state of Washington‘s drug policy is not tenable, including James McMahan, policy director for the Washington Association of Sheriffs and Police Chiefs, who said he hopes the legislature’s approach makes prevention, intervention, treatment and recovery options “as available as these substances are in our community.”

Other concerns about the bill expressed by city officials, council members, and mayors from around the state centered on funding and how municipal courts would handle the influx of cases shed by the state’s Superior Court system when personal drug possession is no longer classified as a serious offense.

Those who testified against the bill felt that drug possession should be treated as a health issue, not handled by law enforcement. Rayell Johnson of the Snohomish County Ebony PAC (SEPAC) voiced concerns related to ongoing racial issues and policing, saying that SEPAC is “strongly opposed” to the legislation.

“This bill does nothing to end or mediate the drug war waged on poor people and People of Color for decades. Law enforcement, especially in Washington, are not trained or capable of telling the difference between a misdemeanor and a felony. Regardless of how you classify these possessions, as long as you criminalize them we will continue to be stalked like prey in a forest. Your continued trust in law enforcement to enforce this properly is misguided at best and malicious at worst.” — Johnson, in testimony at SB 5746’s hearing

Although the bill’s exact fiscal note is unknown due to the state not knowing how many people would be charged with “knowingly” possessing drugs, it is estimated the cost to the courts would be around $22.4 million per biennium due to the costs of prosecutors, public defenders, and the transportation and housing of offenders, the OPR staff reported. The Criminal Justice Training commission estimates they will need $1.4 million the first year and $2.1 million the following year to re-train officers.

According to OPR staff, the Navigator Teams spread across the ten regional health districts would cost approximately $10 million each year. However, due to the “indeterminate nature” of the program, they say the teams could cost the state tens of millions per year. Each regional health district would be asked to create a “regional administrator” position, which is estimated to cost up to one million each year for the ten districts.

The remainder of the costs — like the increased funding for low-income grants, homeless services, and other programs — is unknown.

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The Botanical Joint: Living ‘La Vida Ranchera’ On a Latina-Owned Hemp Farm

4/20/2021

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Born in Oregon, now blossoming in Fresno County, California — The Botanical Joint is a licensed hemp farm owned by the first Latina hemp breeder in the United States, Sue Carlton.

The Botanical Joint offers a variety of hand-crafted artisanal hemp and wellness products, with a line of CBD flower that pays homage to Sue’s roots, including:

  • WAP: Named after Cardi B’s song, featuring Megan Thee Stallion.
  • Frida: Named after a Mexican painter who helped bring light to Mexican culture through her paintings.
  • Not Your B*tch: Named due to a wicked sense of humor, in an effort to stick it to the man.
  • Ranchera Tingz: Named as a remix to Nicki Minaj’s song Barbi Tingz.

The journey’s beginning

It started in the 1900s with Sue’s great grandfather and grandfather being cattle farmers. At that time, they were one of the largest in Washington state: “They were known for having the biggest cattle farm in their state,” said Sue. Her grandfather helped raise her, which is where her gardening experience started to flourish.

Founder Sue Carlton elaborated on her generational knowledge, “My Chingona mother also grew up on a ranch; I remember her telling me stories of the cattle getting out. She would have to jump in the truck at the age of 9 when the cattle got out and would get caught by neighbors when trying to tangle the livestock back on to the property. Everyone would have a big laugh at this because she was so young and tiny, but she would always just say: ‘somebody has to do it.’”

Hemp was introduced on the farm back in the 1900s as Sue’s great grandfather and grandfather grew it to feed their cows and livestock. “Hemp runs through my blood,” she said.

At the age of 20, Sue started working in medical cannabis grows in Oregon; she consumed cannabis for pain and stress relief from reproductive disorders. Working with cannabis allowed her to get affordable flower and therapeutic relief from the plant. She transitioned to working with cannabis edibles, creating chocolate and other confections for a few years. She built the award-winning edible, Couch Potatoes.

Discrimination led to launching The Botanical Joint

I asked Sue why she decided to launch her own company in the hemp space. She said, “Honestly, it was the 8 years of being exposed to oppression and discrimination on the agriculture side of cannabis and hemp that fueled me to say: ‘fuck working for the man’ and step up on my own to build my own business and farm.”

But in other ways, Sue knew that she’d be here. “Agriculture, farm life, has always been my passion. Like I said before, my grandparents were the largest cattle farmers in Washington and my mother grew up in farm life, and also pursued farming in Ohio. It’s in me, which is why I sought out to bring my passion for farming into the curation of The Botanical Joint”.

Because of her experience, Sue believes it’s important for her to represent and advocate for the inclusivity and equity of what America calls “minority groups.”

“It’s important for me to help represent and advocate for the inclusivity and equity of LatinX growers and other minority groups like African Americans and Asians; those that are highly underrepresented in the agriculture and overall cannabis industry. It’s important to take advantage of any opportunity I have to continue to use my platform to show that anyone — no matter size, strength, gender, sexual identity — can be anything they want to be,” she said.

Becoming the first Latina hemp breeder in the U.S.

La primera en hacerlo (the first to do it), Sue went after the world of genetics and is la primera criador de cáñamo en los Estados Unidos (the first Latina hemp breeder in the United States). She is the creator of the strain names above that represent the culture that is underrepresented in the cannabis and hemp space.

So why is she doing what no one else in hemp is doing?

“While we all are aware that the genetics side of cannabis is primarily made of white cis males, I find it important as a female and who is also Latina to utilize names that I personally connect with as a 27-year-old. One example is WAP, named after Cardi B and Megan Thee Stallion’s song, which caused controversy over the idea of what and how women should act/say. This song for me was hella empowering on a feminist level, I wanted to continue to help break those stigmas through utilizing the name for one of our genetics.”

Intentional partnerships with Latin-owned brands

There is a new term being associated with The Botanical Joint: Live The Ranchera Life.

“Ranchera for us means female rancher,” Sue said. “We coined this term over the summer with my work wife who comes out to lend a hand to the farm. We honestly kept getting hurt and then our response would be, ‘la vida ranchera.'”

The support and collaboration don’t end there — Sue has partnered with Adrianna Nole, founder of CBD infused skincare company The B*tchy Hippie.

“The B*tchy Hippie and I met on Instagram in late 2020, she was super stoked to find a Latina farmer to source her flower from as a Latina business owner herself. She found it important to not just advocate for Latinas in the hemp industry, but act on it by making her purchases through us, taking this message to the bone.

“In the spring of 2020, I moved to the county of Fresno and Adrianna lives here so we became friends as well. We both have degrees in science; mine’s in community health and she is a Registered Nurse. Automatically we share a similar ethos when it comes to bringing affordable and accessible high-end hemp products to the market, bringing consumer education through our unique backgrounds. There’s no one I could imagine that fits better to partner with in my mind than Adrianna. And honestly, I feel like this is how I can show support for another Latina hemp business owner.”

Closing thoughts

Sue is a huge supporter, and she walks it like she talks it. She sponsored my stay at The Botanical Joint’s farm in April 2020. I wanted to pay tribute to the plant we all love and so I reached out to Sue to discuss me coming out to camp with her plants, and she said yes! Our friendship and working relationship has blossomed since.

I wanted to hear from Sue about what she would like to see changed and enhanced in the cannabis and hemp spaces.

“There are a lot of changes I wish to see within cannabis agriculture,” she concluded. “To name a few; minorities within cannabis agriculture, inclusive cannabis groups, show more diversity by way of all minority groups — not just the one that resonates with the owner.

“I’d love to see more news coverage on companies that have been, and that are actively and positively impacting communities, rather than covering white-owned companies that give back once. I’d like to see the highlighting of black and brown/ POC companies who would benefit more from the coverage when we talk about supporting minority groups.

“The media can forget what the actual mission is, which is to give back. White-owned companies, when given credit for what they should be doing, distorts the whole idea of pushing black and browns to the front.”

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Ohio Regulators Approve Doubling Number of Dispensaries

4/20/2021

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The Ohio Board of Pharmacy on Monday approved raising the number of medical cannabis dispensaries in the state from 60 – a limit initially set in 2017 – to 130, the Cincinnati Enquirer reports. The application process for the new licenses, 73 in all, will open later this year.

The 60-dispensary limit was based on an estimated patient count of between 12,000 and 24,000 over two years; there are now 92,772 active registered patients in the state. In 2018, the board awarded 57 licenses – three fewer than expected as three districts lacks enough applicants to award the maximum number. Five of those dispensaries still have not opened.

Sharon Maerten-Moore, the board’s director of medical marijuana operations, said that expanding the number of dispensaries would decrease patient travel time and, “due to more competition in the market, prices will decrease over time.”

An additional nine licenses will be issued in Franklin County, where there are six current licensees. In Hamilton County, which encompasses Cincinnati, the number of licenses will be raised from three to 11. Summit County, which includes Akron, will see an increase from three to five licenses. Several counties will be able to host their first dispensary under the expansion.

The board anticipates each dispensary can serve 300 to 600 patients. Last year, the state added just one new condition – cachexia or wasting syndrome – to the list of qualifying conditions. In a 2020 survey, 58.4% of respondents indicated that the state’s medical cannabis prices are too high.

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New Studies Find Cannabis Use Associated with More Exercise

4/19/2021

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Two recent studies suggest that cannabis use is associated with greater levels of exercise adding to a growing body of literature that pokes holes in the “lazy stoner” stereotype.

A study published last month in the journal of Public Health included 15,822 U.S. adults and concluded that “those who had ever used cannabis had higher odds of being physically activity compared with those who had not.” The researchers noted, though, that among males, cannabis use was also associated with watching television for two or more hours per day.

A separate study published this month in the Substance Use and Misuse journal included 387 adolescent participants, aged 15-18-years-old, who self-reported cannabis use and exercise. The subjects who reported higher levels of exercise at baseline were more likely to say they would use cannabis in the future.

“Contrary to hypotheses, adolescents reporting more exercise at baseline also reported higher [cannabis use] frequency in our sample. This association may be explained by factors like sample characteristics or sports types, but more research is needed to explore this. Results did not support a mediating role for decision-making in the associations between exercise and [cannabis use] outcomes.” – “Exercise, Decision-Making, and Cannabis-Related Outcomes among Adolescents,” Apr. 8, 2021, Substance Use and Misuse

A study published last month in the journal Preventative Medicine found cannabis users “equal to or more likely to exercise than non-users” and acknowledged that the stereotype portraying cannabis users as “largely sedentary” was “not supported by these data on young and middle-aged adults.”

A study published in 2019 in the journal Frontiers Public Health found 81.7% of respondents said cannabis “enhances their enjoyment of and recovery from exercise” while about half said cannabis use motivated them to exercise.

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Two Polls Find Record-Breaking Support for Cannabis Reforms

4/19/2021

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Two polls released last week — one from the Pew Research Center and one from Quinnipiac University — demonstrate new, record-breaking support for medical and adult-use cannabis reforms in the U.S.

The Pew poll showed that an overwhelming majority of Americans — more than 9 in 10 — support legalizing cannabis for either medical or adult use. The survey, conducted from April 5-11, found that only 8% of respondents favored continuing federal cannabis prohibition.

Pew reported that Republicans were more “wary” than Democrats when it came to adult-use legalization (supported by just 47% of Republicans compared to 72% of Democrats), but the ideological differences shrank when adjusted for age with younger voters from both parties far more likely to support the reforms.

The Quinnipiac poll found that 7 in 10 Americans support federally legalizing adult-use cannabis. The poll surveyed 1,237 U.S. adults from around the country from April 8-12, and the results mark “a record level of support” for cannabis legalization since the pollsters first started weighing the popularity of cannabis reforms in 2012.

2021 has already been a landmark year for cannabis legalization, with adult-use reforms now approved in New Jersey, New York, Virginia, and New Mexico. Meanwhile, legalization momentum in Mexico is poised to leave the United States as North America’s last holdout for cannabis prohibition — although congressional Democrats led by Senate Majority Leader Chuck Schumer (D-NY) are expected to release a federal legalization proposal soon.

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College of Central Florida Approved for Hemp Cultivation

4/19/2021

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The College of Central Florida has been approved by the state Department of Agriculture’s Division of Plant Industry to cultivate hemp at its Vintage Farm Campus in Ocala. It is the first license of its kind approved for a state college in the Sunshine State.

The hemp will be used by the college’s agribusiness program and the program will focus on seed germination, soil, water, and light requirements, pruning techniques, pest management, harvesting, and curing, the college said. The curriculum will also focus on navigating compliance and marketing materials harvested from the crop.

Tavis Douglass, agribusiness program manager, said hemp cultivation “was a natural fit” for the program “due to statewide and local interest in the burgeoning hemp industry in Florida, and the uniqueness of the college’s Vintage Farm Campus facilities and areas of study.”

“Because hemp is a relatively unknown crop in our climate, not much is known of how it will perform. Therefore, we will be testing and growing plants under various growing conditions. Additionally, our program will focus on hemp products that may have use in agricultural sectors such as our local livestock and equine industries.” – Douglass in a press release

During the fall 2021 or spring 2022 semester, the college plans to offer a short-term, non-credit, hemp-focused course or lecture for the community.

The College of Central Florida offers an Associate in Science degree in Agribusiness Management, Bachelor of Applied Science in Business and Organizational Management with a specialization in Agribusiness, as well as certificate programs in Nursery and Landscape, and Livestock Production Management, which will all benefit from the college’s hemp research.

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Wisconsin Senate Leader Opposes Cannabis Reforms Without Federal Action

4/19/2021

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The Wisconsin Senate’s top Republican, Majority Leader Devin LeMahieu, said during a WisPolitics.com luncheon last week that he will not support medical cannabis legalization in the state without federal reforms.

“If the federal government delists it and it goes through [Food and Drug Administration] testing, then it should be treated like any other drug. If there’s advantages to it, if it helps out people, I have no problem with it as long as a doctor’s prescribing it. But I think that discussion needs to be done at the federal level and not have some rogue state doing it without actual science behind it.” – LeMahieu via WisPolitics

He added that there is not enough support in the state’s Republican caucus for the legalization of either medical or recreational cannabis.

Senate Majority Leader Chuck Schumer (D) has said a federal cannabis reforms bill is coming “shortly.”

Democratic Gov. Tony Evers had included revenues from broad cannabis legalization in his 2021-2022 budget proposal. On Twitter last week, Evers said he was “tired” of Illinois Gov. J.B. Pritzker (D) thanking him for the added tax revenues derived from Wisconsin residents crossing the border to purchase cannabis in the state. Evers’ plan to legalize cannabis estimated the state would raise $165.8 million per year from industry taxes and fees starting in 2022-2023.

Assembly Speaker Robin Vos (R) has indicated support for medical cannabis legalization but would prefer the reforms were enacted as standalone legislation rather than through the budget process.

During a radio address last week, Evers said the legalization plan would modify criminal penalties for cannabis-related crimes “to align with legalization and create a process for individuals serving sentences or previously convicted of marijuana-related crimes to have the opportunity to repeal or reduce their sentences for nonviolent minor offenses.”

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