District of Columbia police arrested 30 individuals Friday night at a cannabis pop-up event in Northeast Washington, according to a Washington Post report.
Police seized several pounds of cannabis product from 28 different vendors, more than $10,000 in cash, and three firearms at the event. A police official said that the bust came about while officers were serving a search warrant. The police official confirmed that Friday night’s event was well-attended, though it is not currently known if and/or what charges were brought against the arrested individuals.
Adult-use cannabis is legal in Washington D.C., but only to possess, grow, or consume — not to buy or sell. However, a cannabis gray market has thrived since legalization took effect, where consumers might buy something — like fresh juice or a trinket or even an empty glass jar — that would also come with a “gifted” stash of marijuana.
Under the District’s cannabis laws, it is technically legal to give up to one ounce of flower as a gift.
A lieutenant with the D.C. police narcotics unit told reporters that the department does not actively seek cannabis pop-ups in the District but will respond if they receive complaints about the events.
Controversy sparked last week when United Kingdom customs agents confiscated a stock of cannabis oils from Charlette Caldwell, mother of 12-year-old epilepsy patient Billy Caldwell. Thankfully, the medications were returned over the weekend, but not until after Billy was hospitalized due to a severe seizure — his first in 300 days, according to his mother.
Ms. Caldwell was returning from Canada, where she had purchased the cannabis-based epilepsy medication, when the life-saving oils were confiscated by border agents at Heathrow airport. Ms. Caldwell, believing she was allowed to return with the cannabis oils, had declared the medication on her customs form. The medicines were taken and only returned after Billy had been hospitalized; the family is now licensed to hold and administer the Schedule 1 medication, but only for a 20-day period and only while remaining in the hospital.
“I truly believe that somewhere in the Home Office there’s someone with a heart, and I truly believe that Billy was pulling on their heartstrings.” — Charlotte Caldwell, in a statement, via the BBC
Billy started using cannabis-based epilepsy medicines in 2016 while on a trip to Colorado. In 2017, he became the first UK citizen to be prescribed cannabis oil in the country. Last month, however, Billy’s doctors were told by the Home Office they could no longer prescribe the cannabis-based epilepsy medication, which prompted Ms. Caldwell’s visit to Canada.
“No other family should have to go through this sort of ordeal, travelling half way ’round the world to get medication which should be freely available. My experience leaves me in no doubt that the Home Office can no longer play a role in the administration of medication for sick children in our country. Children are dying in our country and it needs to stop now.” — Charlotte Caldwell, in the BBC report
On Tuesday, the U.S. House of Representatives’ Committee on Rules once again blocked two amendments crafted to fight the opioid crisis from being brought to the floor for a vote, Marijuana Moment‘s Tom Angell reports. The two amendments — one pushing the VA to research medical cannabis and one preventing the federal government from blocking access to pain-relieving Kratom — were introduced by Rep. Jared Polis (D-Colorado).
“The opioid epidemic has affected so many in the U.S., if not directly, indirectly through friends and family. Along with improving access to mental health services, drug abuse treatment, and prevention programs, we need to improve access to alternative pain relief options that work. For some, kratom, a cousin of the coffee plant, can be such an alternative. For others, including many veterans, medical marijuana can help manage pain without resorting to more dangerous and addictive prescription opioids. Kratom and medical marijuana should be legal and available to our veterans.” — Rep. Jared Polis, in a statement
Polis took to the floor on Wednesday to scold the Committee on its continued blocking of cannabis legislation from consideration on the House floor.
“This bill is being considered under a closed rule. This is the 86th closed rule of this Congress. What that means, Mr. Chairman, not a single member, Democrat or Republican was able to offer an amendment to this bill and there were good ideas on both sides that weren’t allowed to be advanced. The Republicans continue to bring bills to the floor this way to limit the opportunity for Republicans and Democrats to do something to stop opioid abuse. As a legislator who has a lot of ideas to save lives, increase freedom and decrease opioid abuse, that would pass. I think a lot of my ideas would get 350 votes here in the House. We are not allowed to bring them forward. It is just so frustrating when we all know the human face of people that are suffering from being caught in a vicious cycle of opioid addiction and we have seen in our friends and family.” — Rep. Jared Polis, speaking on the House floor
The House Committee on Rules has made a practice of blocking all cannabis amendments. Chairman of the committee Rep. Pete Sessions (R-Texas) has been the culprit behind this strategy. Despite sharing names and similar beliefs about cannabis, Rep. Sessions bears no relation to Attorney General Jeff Sessions.
Congressman Sessions’ strategy was designed in a Republican Conference meeting in June 2016 after a bill meant to protect LGBT government contractors was struck down by a minority of representatives, despite having enough support to pass. The move to block the pro-LGBT amendment caused chaos in the House and Republican leaders decided a strategy to prevent open consideration on amendments was in order, using the Rules Committee. This power has been used by Rep. Sessions to pursue his anti-cannabis agenda. No cannabis amendments have made it to the House floor since 2016.
However, Rep. Sessions’ strategy may soon backfire. The 2018 midterm elections are approaching and polling shows that 83% of Texas voters favor legalizing medical cannabis. Opponents are expected to use Congressman Sessions’ overzealous anti-cannabis stance against him.
Illinois lawmakers have approved a bill that would make having an opioid prescription into a temporary qualifying condition for the state’s medical cannabis program, NPRreports. The move is an effort to reduce the devastating effects of opioid dependence, which results in the deaths of tens of thousands of Americans each year.
Dubbed the Alternatives to Opioids Act, the bill would allow any individual who is 21 or older and has a condition for which opioids might be prescribed — such as an injury or severe pain — to apply for temporary access to the state’s medical cannabis program. The whole process would be streamlined via paperwork signed by the patient’s doctor — patients would no longer be fingerprinted or need criminal background checks and the approval process would be almost immediate.
State Sen. Don Harmon, a Democrat and sponsor of the Senate version of the bill, called the bill a “low-cost and low-risk alternative” to the ongoing opioid crisis.
“Clearly what we’re doing now is not working. This is a problem that touches citizens in every corner of our state. Medical cannabis is the most readily available alternative….” — Sen. Don Harmon, when introducing the bill in November
The bipartisan legislation now sits on Gov. Bruce Rauner’s desk, awaiting his signature. It remains unclear whether or not Gov. Rauner will sign the bill into law, as he has had a rocky history with pro-cannabis legislation and this bill would potentially open up the medical cannabis industry to millions of new patients.
Medical cannabis clinics are beginning to open their doors in Columbus, Ohio, though the industry’s medical cannabis products aren’t ready and, in fact, haven’t even been planted yet. Instead, businesses have doctors on-site who are meeting with future patients and helping people sign up for Ohio’s new medical cannabis program.
“Our goal is to get people aware of the program, enrolled in the program and then guide them throughout the program.” — Dr. Anand Dugar, of Green Health Docs, in an interview with ABC6
The state’s dispensary locations were unveiled just two weeks ago and, though some cultivation sites are set in place throughout the state, none of the growers have received certification yet from the state to begin production. Last week, officials revealed that the industry would be delayed from its official September 8 launch due to delays in the licensing process.
Meanwhile, just 139 doctors have registered to recommend medical cannabis in Ohio. Experts believe that number will increase, but some critics have said the state should speed up the doctor registration process.
“Ohio patients need more doctors who can make recommendations for their care. Unfortunately, at this rate, there will be 500 doctors eligible to prescribe medical marijuana to patients by the end of the year. In comparison, Pennsylvania has already signed up nearly 6,000 doctors and more than 36,000 registered patients.” — Ian James, president and founder of GLA Holdings, to ABC6
Wednesday, the U.S. House of Representatives’ Appropriations Committee voted down a measure designed to protect banking institutions that are willing to work with cannabis businesses, according to a Forbesreport by Tom Angell.
The measure would have stopped the Treasury Department from penalizing a financial institution solely for doing business with a company in the cannabis industry, giving banks assurances from the federal government that they wouldn’t be closed down. It was defeated in a voice vote during the session.
Rep. David Joyce (R-Ohio) was the primary sponsor of the amendment. Joyce said the issue at hand for the amendment is not about cannabis, but rather public safety and financial transparency. Several other Republican supporters of the bill were absent for debate, weakening Joyce’s ability to have a formal roll call tally for the amendment.
Following the measure’s defeat, Joyce attempted to write a version of the amendment focused on medical cannabis instead but, after insufficient support and several calls for removal, Joyce withdrew the second attempt at an amendment.
Last week, Canada’s Senate approved the House of Commons’ bill to legalize cannabis but attached several amendments limiting the scope of legalization, including one that allows provinces to ban home cultivation and another imposing heavy advertising restrictions on cannabis companies.
Now, the House of Commons has rejected a number of the Senate’s amendments — including the change allowing provincial home grow bans — and Senators must decide whether a political showdown will be worth it.
According to a National Post report, Quebec, Manitoba, and Nunavut all plan to ban cannabis home grows. The Liberal government, however, has pushed hard for a nationwide allowance of up to four plants per household and, according to Health Minister Ginette Petitpas Taylor, the government won’t accept it any different.
“Canadians are allowed to make beer at home, or wine, and some Canadians grow tobacco. It’s already possible for Canadians to grow cannabis for medical purposes, and we absolutely believe that the legislation should be consistent when it comes to recreational cannabis.” — Health Minister Ginette Petitpas Taylor, in the report
Prime Minister Justin Trudeau said the home grow provision was based on expert recommendations and accused Conservative senators of trying to delay the legislation.
“It’s been months that Andrew Scheer, the Conservative leader, has been telling his Senate caucus … to play games to slow this down, to interfere with the will of the House … and it’s time that he stopped using his senators this way.” — Prime Minister Justin Trudeau, in the report
Scheer responded, noting that the Conservatives aren’t in control of either the Commons or the Senate, so any delays couldn’t be their fault.
“If the prime minister is upset about the pace of legislation, he needs to talk to his own House leadership team and his Senate leadership team.” — MP Andrew Scheer, Leader of the Conservative Party, to reporters
All eyes remain on Canada this summer as federal elected officials hammer out the country’s future cannabis regulations, which promise to make Canada the first G7 country to fully legalize adult-use cannabis.
Uruguay was the first nation in the world to legalize cannabis for adult use. One year after the market’s launch, however, the country still struggles to meet demand, according to The Associated Press.
Diego Olivera, head of Uruguay’s National Drugs Council, said it’s been almost a year since the legal market launched and it has involved a steep learning curve.
“The demand is greater than our productive capacity. We have to address that challenge.” — Diego Olivera, head of Uruguay’s National Drugs Council, to The Associated Press.
In Uruguay, legal cannabis consumers must register with the government, which allows them to purchase up to 40 grams of cannabis per month from participating pharmacies. Individuals who wish to grow their own cannabis can do so but must sign up on a government registry, and those who do so are limited to harvesting about a pound of product per year; there are 8,750 registered individual growers in the country. Similarly, grower and user clubs are allowed — but they also need the government’s approval.
Most Uruguayan provinces do not contain a pharmacy distributing cannabis products, meaning many citizens who want to buy legal cannabis must travel to find it. Only 14 of the country’s some 1,200 pharmacies actually stock cannabis products; most pharmacies say it’s not worth the small profit margins and increased risk of robbery.
As shortages persist, customers are beginning to turn back to the unregulated marketplace — customers like Montevideo resident Laura Andrade.
“I work, I can’t come here every day. Today, I’ll have to buy from an illegal dealer. I have no choice. This system is crap. It’s useless!” — Laura Andrade, to the Associated Press
St. Louis Circuit Attorney Kim Gardner, in an email sent to her staff Tuesday, said her office will no longer prosecute typical possession charges for less than 100 grams of cannabis, according to a report by the St. Louis Post-Dispatch.
This step is the city’s next towards full decriminalization following a decision earlier this year by the St. Louis’ Board of Aldermen to cut the penalty for possessing small amounts of cannabis from up to $500 for 35 grams or less to $25 for the same amount.
“Today, after reviewing our data relating to drug possession cases, I have determined that these cases are hampering our ability to administer justice for the people of the city of St. Louis.” — Kim Gardner, via the St. Louis Post-Dispatch
In the email to staff, Gardner said that her chief warrant officer and team leaders would evaluate every cannabis possession offense for less than 100 grams. If there were no “aggravating circumstances,” the case would be dismissed. Gardner also said that she would review other drug possession or paraphernalia cases and decide if they will be dismissed or placed into a diversion program.
The decision is controversial. Several people involved with the St. Louis Police Department have taken issue with Gardner’s edict. Schron Jackson, a spokesperson for the St. Louis Police, said officers will “continue to enforce the Missouri Controlled Substances Laws as they are written,” according to The Associated Press.
The Senate Committee on Agriculture, Nutrition, and Forestry advanced the 2018 Farm Bill on Wednesday in an overwhelmingly supportive 20-1 vote, according to a Marijuana Moment report.
“It’s a landmark piece of legislation that will benefit farmers and communities throughout our country. I’m particularly excited that the legislation being considered today includes provisions from the Hemp Farming Act of 2018…which I introduced earlier this year.” — Senate Majority Leader Mitch McConnell, during a hearing on Wednesday
The Farm Bill could still be subject to changes upon reaching the Senate floor but the hemp legalization amendment enjoys strong bipartisan support, with both the Senate Majority Leader and Senate Minority Leader Chuck Schumer (D-New York) enthusiastically backing it.
In one last-minute effort to undermine the hemp legalization language, Chuck Grassley (R-Iowa) filed a controversial amendment to the Farm Bill on Tuesday targeting the hemp-derived CBD industry. The amendment would have modified the hemp legalization language to exclude “the derivatives, extracts, cannabinoids, isomers, acids, salts, and/or salts of isomers” of the plant. Sen. Grassley said that he would support hemp legalization but not the CBD extracts industry; he also said that he had objected to McConnell’s hemp legalization language on procedural grounds but was ignored by his colleagues.
Advocates and hemp supporters lashed out against the amendment. In a series of tweets, Kentucky’s Commissioner of Agriculture Ryan Quarles railed against Sen. Grassley’s amendment:
“On behalf of Kentucky’s farm families, I STRONGLY oppose Senator Grassley’s Amendment…. CBD has been a huge part of making our research pilot a model for the nation. Kentucky’s farmers and processors are making innovative CBD products available to consumers. We recorded millions of dollars in sales revenues last year. The Grassley Amendment must be STOPPED in its tracks.” — Kentucky Commissioner of Ag. Ryan Quarles, on Twitter
The bill advanced, however, without Sen. Grassley calling for the committee to vote on his amendment. Instead, he asked senators to “work with me to modify this provision after this bill gets out of committee.”
A new study published by High Yield Insights has found that 44% of cannabis consumers in legal, adult-use marketplaces self-identify as medical users. According to the study, the three most common reasons for self-medicating with cannabis are as pain relief (69 percent of respondents), sleep aids (65 percent), and anti-anxiety medication (54 percent).
“The industry generally understands that the adult use consumer differs significantly from the medical user. We saw an opportunity to quantify this customer segment’s behaviors and preferences in a way to yield deeper understanding and reveal untapped market opportunities.” Mike Luce, co-founder of High Yield Insights, in a press release
The report suggests that medical users are twice as likely to check CBD content when they purchase a cannabis product (47 percent of medical users, compared to 25 percent of recreational users). Medical users also express a higher demand for alternative cannabis products and are twice as likely as adult-use consumers to use topicals (22 vs 11 percent) and more than three times as likely to use tinctures (17 vs 5 percent).
“Flower will always play a significant role, but medical users are seeking solutions that feel familiar and accessible. With edibles, we’re seeing a demand for low-dose, fast-onset options that meet users’ needs for discretion and convenience. CBD-focused companies also have an opportunity for growth if aligned with medical cannabis users’ interest in what today are niche product forms.” — Mike Luce, co-founder of High Yield Insights
Another High Yield Insights study, released in March, found that cannabis users in adult-use states were consuming less alcohol and fewer over-the-counter medications than before legalization happened.
Democratic Party members in South Carolina support passing a state law that would allow doctors to prescribe medical cannabis with a strong, 82 percent majority, according to aPost and Courierreport.
The votes were collected using non-binding resolutions on internal party ballots; the resolutions were crafted to gauge party opinion and increase turnout. Democratic party leaders said the results were expected.
Meanwhile, polled Republicans threw their support behind other issues, such as allowing voters to choose to affiliate with a political party when they register to vote and reconciling South Carolina’s tax code with the recent Trump administration tax cuts.
South Carolina has no medical cannabis or adult-use cannabis laws on the books to date, and — in line with many other bible belt states — there has been resistance to any substantial cannabis reforms. In March, the South Carolina Senate Medical Affairs Committee advanced a medical cannabis bill that would have set up a comprehensive, state-wide program, but that bill’s counterpart died in the House.
The state does, however, have a hemp pilot research program and the Department of Agriculture recently doubled the number of permits available for would-be hemp farmers. South Carolina’s first hemp crop is being harvested this month.
In an interview with a Cincinnati TV station, former Speaker of the House John Boehner said that the federal government should “get out of the way” of cannabis legalization. Boehner’s longtime political stance was against cannabis. However, since leaving public office in 2015 and doing more research, he’s changed his opinion on cannabis. These days, Boehner sits on the advisory board of cannabis holding company Acreage Holdings.
“If the states decide they want to do this, this is up to them, but I am not going to be an advocate on what the states should and should not do. That’s clearly up to them.” — John Boehner, via WCPO Cincinnati
Boehner supports more cannabis research. He has been lobbying Congress to remove cannabis from the Schedule I list of drugs, the category of Controlled Substance that is considered to have no acceptable medical use and contains drugs like heroin, ecstasy, and LSD. Boehner also expressed support for increasing medical cannabis access for veterans, children with epilepsy and other seizures, and people suffering from opioid addiction and other medical conditions.
“Even with chronic pain, or veterans with PTSD, they ought to be able to have access to medical marijuana because we believe it actually helps them.” — John Boehner, via WCPO Cincinnati
That the cannabis industry is growing by leaps and bounds is not new news. Over half the United States has legalized some form of medical marijuana, with nine states enjoying full adult-use legalization. All of Canada is set to enjoy recreational cannabis in a few short months.
However, while it’s fun to read the reports about the potential size of this new market, it doesn’t always tell the whole story. The cannabis business is tough. At first, maybe, the product just sells itself, but the novelty wears off pretty quickly.
At Headset, we’ve gotten to watch the industry evolve in real-time, via the data we collect from our partners in cannabis retailer and production. We launched Headset, a data-driven business analytics firm specifically designed to meet the needs of the cannabis industry, in 2015, tracking our home market of Washington state. We track data across the country, but we’re capturing about 75% of every dollar transacted in Washington, so the dataset we’ve built there is really strong.
From studying it, we’ve gained some fascinating insights about what a maturing market looks like, and what it takes to carve out a foothold in it. These are the ones we think are most important, and we hope entrepreneurs in emerging markets like Canada and California will find them useful!
After initial excitement, growth plateaus
Our data show an almost astronomical rate of growth in the early years of the Washington market. The recreational market started very small, as it was essentially built from scratch, rather than being based on an existing medical market like it was in Colorado.
Growth rates were about 100% from 2015 to 2016 in Washington. That fell to about 33% from 2016 to 2017, and year to date growth is at about 10%. That’s still a great growth rate, of course, but the trend is pretty easy to interpret. Growth cools off after the initial surge of activity, which benefits well-established businesses the most.
Certain sectors and product categories still have a lot of growth potential, which we’ll get into below, but overall growth tapers off as the industry wins over initially hesitant consumers and reaches a plateau point.
Mature cannabis plants inside of Trail Blazin’ Productions’ cultivation site in Bellingham, Washington. Photo credit: Rory Savatgy
What about prices?
As the market grows and settles, so too do prices. At first, because supply is limited and the market is small, prices are pretty high. We’ve seen those prices drop over 2016 and 2017, but eventually stabilize. However, while prices are lower overall, consumers are still spending about the same amount per transaction ($30-32). Basically, the industry is delivering a lot more value to the consumer.
However, that decreased cost to consumer comes out of someone’s pocket, and in Washington it appears to be the producers. There are far more licensed producers and processors in Washington than retailers, creating something of a glut. As with any commodity, too much cannabis on the market means low wholesale prices, and we’ve heard of producers selling for as low as $0.20/gram.
Producers that are insulated from this a bit are ones who have developed a brand that resonates well with consumers, enabling them to ask more from retailers. Large producer/processor operations who have a lot of different brands in their portfolio actually do very well in this market, as they’re able to bring in or grow a lot of product very cheaply, add value to it, and ask for better wholesale prices for that product.
Branching out is better
As we hinted at above, variety is key. Consumers start out buying almost exclusively flower. We estimate that about 90% of sales in a new market will be flower, and that that figure will drop off significantly over time. Among the nine product categories we track, flower still accounts for over 50% of Washington sales, but the category has definitely given ground. And the products that continue to show high growth rates are niche ones like tinctures, topical, and capsules. Companies looking to break into the market later in the game would do well to look outside of the flower category. For producers with a long history in flower, like Humboldt’s big medical growers, thinking early on about other ways to use that flower is wise.
Branding is big
We mentioned that producers who brand well are protected from downward price pressure to some extent. Indeed, branding is a big part of success in the mature cannabis market. In Washington, the top 10 brands currently command 20% of the market. And that’s just brands, not companies. We estimate that there are about 900 currently operating producers in Washington, and many of the top producers have multiple brands. Successful brands also tend to have a lot of products in their portfolio, so they’re meeting every different need their customer base might have. Once they’ve won people over with one product, they can keep them interested in the brand with other products.
A box of Tart Cherry-flavored pastilles from Goodship, a Washington edibles company. Photo credit: Sarah Climaco
What do winners look like?
The top 10 brands in Washington all share similar characteristics. Distribution is one of them. In Washington, the state is divided into east and west sides by the Cascade mountain range, and the top brands have a solid retail presence on both. They all produce products in multiple categories, from flower to edibles to pre-rolls and beyond.
Perhaps most importantly, they all focus on building a consumer relationship with their brands, be it by commissioning custom art for their packages, or pushing to engage budtenders, who serve something like gatekeepers of brand loyalty. Because cannabis brands can’t depend on most social media to communicate with their customers, focusing on in-person marketing, like the visual appeal of packaging or the human interaction with budtenders, is crucial. The big brands do that very, very well.
Data matters as well, and companies that are making decisions based on data rather than hunches have a serious competitive advantage. We’ve also heard from our retail partners that producers who use technology to manage logistics get preference. At least a few of the top brands use our Bridge service, which is a vendor-managed inventory (VMI) system designed for the cannabis industry, and buyers love them.
Lastly, something we’ve also seen is that the best brands combine business savvy with a good understanding of cannabis culture. Lots of entrepreneurs who came from the black or grey markets suffered for a lack of business acumen, and lots of companies who came from outside the cannabis community have found it difficult to connect with consumers. The best companies can do both.
A note about new markets
These insights are based on Washington State data, so it’s worth considering what’s different in some of the newer markets. Both Canada and California will have distributors in the market, meaning that the emphasis on producers doing their own direct-to-consumer promotion might not be as strong. Obviously, they’ll still have to develop brand awareness, but they may find distributors to be useful allies in that effort.
Both of those big, exciting, new markets will also allow delivery, which is a major game changer. For one, it’s the main competitive advantage of the black market in states like Washington, where delivery is restricted. It also massively expands the reach of retailers, which means that supply gluts could be much less of an issue. If everyone who wants cannabis can get it without having to come in to a store, it’s a safe assumption that sales will go up!
In Canada, it appears that e-commerce will even be legal, which opens up a whole new world of possibilities for direct-to-consumer sales. Speaking of such, some states allow on-site consumption, which allows for some interesting possibilities in terms of sponsoring events.
Overall, while the green rush might not be quite the bonanza everyone’s made it out to be, it’s an exciting time to be in the cannabis industry. New markets are opening up left and right and, as our data demonstrates, there are a lot of ways to succeed in those markets.
Headset is a data and analytics service provider for the cannabis industry, with a mission to help operators make more informed business decisions through data. Headset focuses on consumer transaction information to help cannabis retailers better optimize operations while leveraging aggregate and retailer-direct sales data to provide product manufacturers, processors and distributors the tools they need to stay ahead of the competitive landscape, better identify opportunity and collaborate with retail customers.
The mayors of seven large U.S. cities in states with adult-use laws formed a coalition on Monday asking the U.S. federal government to remove cannabis from the list of controlled substances, reports the Chicago Tribune. Mayors from Denver, Las Vegas, Los Angeles, Portland, San Francisco, Seattle, and West Sacramento sponsored a resolution at the U.S. Conference of Mayors in Boston which was approved unanimously by the organization.
“As mayors of cities that have successfully implemented and managed this new industry, we have hands-on experience that can help Congress take the right steps to support other local governments as they prepare to enter this new frontier. We all face common challenges.” — Denver Mayor Michael B. Hancock, via the Chicago Tribune
Portland Mayor Ted Wheeler said cannabis businesses employ thousands of people and generate millions of dollars in revenue in Oregon. In an email, Wheeler clearly supported legalization.
“Cannabis prohibition has failed. It has failed to keep our children safe, it has failed law enforcement, and it has especially failed communities of color disproportionately targeted and prosecuted for low-level drug offenses. Eventually, legalization will come to every state — and we want to make sure it’s done so safely and effectively.” — Portland Mayor Ted Wheeler, in an email to the Chicago Tribune
The resolution was spurred by President Donald Trump’s apparent support for a bipartisan bill introduced by U.S. Senators Elizabeth Warren and Cory Gardner, titled the “Strengthening the Tenth Amendment Through Entrusting States” or STATES Act. The STATES Act would install protections for states that have passed adult-use cannabis laws and allow cannabis businesses in those states to access banking and government services.
The resolution adopted by the mayors asks Congress for a variety of concessions, including:
Deschedule cannabis entirely from the Controlled Substances Act.
Allow employers in the cannabis industry to benefit from typical business tax deductions.
Give guidance for the financial industry to provide banking services to cannabis businesses.
Improve legal access to MMJ for veterans
Starting next year and as a result of this resolution, the U.S. Conference of Mayors will now make federal policy recommendations to submit to the U.S. Congress.
On July 1, Vermont’s new adult-use cannabis laws will go into effect, overlapping the state’s existing medical cannabis rules, the Burlington Free Press reports. Soon, Vermont’s some 6,000 patients will find themselves in a confusing mire of regulations with no clear government guidance.
“We need to figure out how to have two systems. Or for that matter, do we now need to have two systems?” — Rep. Ann Pugh, Chairperson of the House Committee on Human Services, via the Burlington Free Press
The two rule sets intersect in unfortunate ways, especially for patients. For example, under the new adult-use rules, the general public will be able to plant cannabis outdoors in an enclosed area with a property owner’s permission; medical patients, however, are only allowed three immature plants and all plants must be kept indoors. Additionally, the general public won’t have a legal way to buy cannabis — patients, however, have an existing dispensary system. Patients are also required to transport all cannabis in a locked container, but there is no such requirement for the general public.
The confusion seems to be driving people away from the MMJ registry. Lindsey Wells, the administrator of the medical marijuana program under Vermont’s Department of Public Safety, says the registry has stopped growing in recent months.
In March, the Vermont Senate passed a bill meant to modify the medical program to correct many of these issues, as well as open the registry to patients with any medical condition or symptom instead of a short list of approved conditions. Unfortunately, the bill never left the House Human Services Committee.
“To be perfectly honest, there were issues of greater importance to more Vermonters that came across from the Senate that we needed to deal with first.” — Rep. Ann Pugh, via Burlington Free Press
A bill introduced to the Vermont Senate in a special session attempts to correct many of the discrepancies between laws. The official legislative session ended May 13th, however. When the special session is concluded, the Senate will not operate again until January 2019. By that point — if no action is taken — Vermont will have spent more than six months with overlapping medical and adult-use cannabis rules.
Detroit city officials are considering an ordinance that would create new location restrictions for medical cannabis operators and cap the number of medical cannabis companies allowed in the city at 75, according to a Detroit News report. It is the latest effort by Detroit officials to reign in the city’s medical cannabis industry.
The changes, submitted by City Councilman James Tate to the City Planning Commission, would establish permanent zoning rules for medical cannabis operators in the city, including cultivators, processors, retailers, and laboratories. After the commission’s review and recommendation, the ordinance will be considered by the city council.
“The goal has always been to ensure that we have an industry that is respectful of the neighborhoods, the communities it is located in, but also considerate to individuals seeking safe access to alternative medication. This ordinance balances those two needs with the preservation of neighborhoods being the top priority.” — Detroit City Councilman James Tate, in a statement
The proposal was prompted by a successful 2017 voter initiative that loosened heavy restrictions imposed on the industry by city officials. The ordinance would not force the closure of the 57 Detroit dispensaries currently operating on temporary authorization from the city, according to the report.
However, Jonathan Barlow of Citizens for Sensible Cannabis Reform — the group behind the 2017 ballot initiative — said the proposed ordinance will just result in more hurdles for cannabis patients and business owners.
“They still are so far away from what the citizens already requested through the ballot. They are just totally neglecting the people’s voice. The process is harder, there’s less access to medicine, they are just making it worse than what they set out to do and what the voters asked for.” — Jonathan Barlow, spokesperson for Citizens for Sensible Cannabis Reform
There remain potentially dozens of unlicensed cannabis dispensaries in Detroit. In May, the Michigan Department of Licensing and Regulatory Affairs issued an extension to the deadline for all cannabis companies to need a state-issued license, giving operators the ability to stay open until September 15 without risking future licensing eligibility.
The Senate Agricultural Committee unveiled its version of the 2018 Farm Bill last Friday, which includes a pushto fully legalize industrial hemp, according to a Harvest Public Media report.
The Senate’s Farm Bill has so far this year been a bipartisan project spearheaded by committee chairman Sen. Pat Roberts (R-Kansas) and ranking minority member Sen. Debbie Stabenow (D-Michigan) — but it was Senate Majority Leader Mitch McConnell (R-Kentucky) who inserted the hemp legalization language, which was taken from legislation that McConnell proposed in April seeking to legalize and normalize the hemp industry.
“Securing the Hemp Farming Act as part of the 2018 Farm Bill has been a top priority of mine. … I look forward to continuing to work with my Senate colleagues on this and many other issues important to Kentucky agriculture as we move towards consideration of the Farm Bill.” — Senate Majority Leader Mitch McConnell, via The Hill
The bill would remove hemp from the Controlled Substances Act entirely and allow the plant to be traded as an agricultural commodity.
The Senate’s Farm Bill still needs to make it out of committee, survive a floor vote, and then be reconciled with the House’s version of the bill — which was already killed once this session by Republican lawmakers in an immigration dispute.
Sen. McConnell said he hopes for a Senate floor vote before July 4; the 2017 Farm Bill expires on September 30.
Lt. Gen. Chuck Lamarre, chief of military personnel in the Canadian Armed Forces, said in a recent interview with the CBC that the Canadian military is not in a position to impose an outright ban on adult-use cannabis. However, Lamarre indicated that restrictions will be more wide-ranging on cannabis consumption than on alcohol.
The Canadian military has a draft policy to deploy and is waiting on the House of Commons to pass the amended version of C-45, the pending Canadian cannabis legalization bill.
“There’s no total ban at this point. We can’t do that. If the law says it’s no longer criminal to have it in your possession, it’s not a criminal act. You just can’t ban it outright.” — Lt. Gen. Chuck Lamarre, to the CBC
The military policy will cover everyone in uniform and also offer guidance to the 30,000 civilian employees of the Canadian National Defence Department.
Restrictions on alcohol and even bans during some overseas operations have long been in place in Canada‘s military. Lamarre and his team are proposing what is essentially an expansion of the rules governing alcohol consumption to include cannabis, in a way that makes sense for the differences between the two substances.
Some military personnel have argued for an outright ban for certain occupations. Lamarre would not discuss it deeply but said the air force has specific concerns about pilots and a dialogue about toughening the policy for the air force was ongoing. The commanders of other branches — army, navy, and special forces — have also been tasked with determining which occupations might need special rules.
“Canadians are expecting our operational readiness and our ability to do our business must never be compromised.” — Lt. Gen. Chuck Lamarre, via the CBC
Lamarre says he doesn’t believe there will be a post-legalization spike in cannabis use among members of the Armed Forces. Most people who join the military do so to perform challenging feats such as flying planes and helicopters, Lamarre said, and he doesn’t expect they would allow legal cannabis to keep them away from that work.
The first two coffee shops serving high-CBD cannabis products in Paris, France opened last week, according to a Telegraph report. The openings follow a softening of French drug laws to allow the sale of cannabis containing less than 0.2% THC, and Parisians lined up outside the businesses to make their purchases.
Controversially (considering scientific support for the cannabinoid), the French Health Authority has ruled that no therapeutic benefit may be claimed by the makers or vendors of any product containing CBD.
The shops are selling cannabis imported from Switzerland that is clearly labeled “Do not smoke,” though the label hasn’t stopped some people from sparking up. The shops’ owners insist that the products are solely meant to introduce a new flavor or aroma to customers’ palettes and not to get customers high. Cannabis flower costs between 11 and 14 euros per gram, and CBD-infused syrup, massage oils, and tea preparations are also available.
Joaquim Lousquy — owner of Cofyshop, one of the two cafes — said he started thinking about opening a shop once he heard that restrictions on cannabis were being eased.
“There’s no psychotropic effect. It isn’t a medicine or a relaxant. I wouldn’t advise anyone to smoke cannabis. We sell it like any other item, just like a furniture shop sells tables or chairs.” — Joaquim Lousquy, to the Telegraph
Stéphane Bélaiche — owner of the other shop, E-Klop — was clear about her purpose for selling cannabis.
“I don’t sell CBD products so they can be smoked in a joint, but so that people can find another flavor to enjoy.” — Stéphane Bélaiche, to the Telegraph
France has some of the most restrictive cannabis laws in the European Union but, since the election of President Emmanuel Macron, has taken several strides to reduce the negative effects of prohibition.
Minneapolis police will stop the use of sting operations to bust low-level cannabis dealersafter it surfaced that 46 of the 47 people arrested in this manner so far in 2018 were Black, the StarTribune reports. Authorities announced the changes last Thursday, also revealing that all charges against the 47 “dealers” would be dropped.
The policy shift can be traced back to Hennepin County Chief Public Defender Mary Moriarty, who complained to Mayor Jacob Frey about the blatant racial discrepancies at play. Mayor Frey, in turn, directed Police Chief Medaria Arradondo to halt the stings entirely.
“I believe strongly that marijuana should be a lowest-level enforcement priority and that it should be fully legalized at the state level. The fact that racial disparities are so common nationwide in the enforcement of marijuana laws is one of the reasons I support full legalization.” — Minneapolis Mayor Jacob Frey, in a statement on Thursday
Here’s how the stings worked: using plainclothed officers, police would pose as buyers and approach people downtown, then arrest anyone who was able and willing to sell them cannabis. According to a May 31 court document, nearly all of these cases involved a sale of just 1-2 grams of cannabis for a total of $10 to $20, and all cases were charged as felonies.
“Approaching black men and women who are low income and homeless and then having the county attorney charge them with felony drug sales makes me very angry and disappointed.” — Public Defender Mary Moriarty, in an interview Thursday
According to Moriarty, the one white person arrested in the sting operations had not been approached by undercover officers but had approached the officers himself and offered to sell them weed.
While the sting operations have ceased, a Minneapolis police spokesperson said the department will continue to make arrests for cannabis sales.
On Thursday, Sens. Elizabeth Warren (D-Massachusetts) and Cory Gardner (R-Colorado) introduced a bipartisan bill that would ensure states have the right to regulate cannabis, reports The Hill. The bill is titled the “Strengthening the Tenth Amendment Through Entrusting States (STATES) Act.”
The bill is a reaction to the Trump administration’s stance against cannabis legalization. The bill would modify the Controlled Substances Act to include language indicating it no longer applies if in conflict with state, territory, or tribal laws “relating to the manufacture, production, possession, distribution, dispensation, administration, or delivery of [cannabis].”
“It’s time to reform America’s outdated marijuana policies.” — Sen. Elizabeth Warren, announcing the bill in a Twitter broadcast
“This city of Denver, the state of Colorado, can collect taxes … they can take it to the bank. But if you’re in the business, if you work for the business, you can’t get a bank loan or set up a bank account because of the concern over the conflict between the state and federal law. We need to fix this public hypocrisy.” — Sen. Cory Gardner to the Washington Post
President Trump has indicated he would likely support the STATES Act, as reported by the Washington Post. Asked by journalists during a Rose Garden news conference about his stance on the bill, Trump said he supports Sen. Gardner and is considering backing the bill. As a Presidential candidate, Trump previously said cannabis legalization should be up to the states.
The primary opponent in the federal government to state-level cannabis legalization is U.S. Attorney General Jeff Sessions. Sessions has long been an opponent of legal cannabis. In January, the Justice Department rescinded the Cole Memorandum and, last May, Sessions sent a letter to congressional leaders asking them to remove the Rohrabacher-Blumenauer Amendment, which prevents the DOJ from using federal money to prevent states from implementing their own cannabis laws.
Trump, however, has had a cold relationship with Sessions since taking office, having criticized him publicly on several occasions about his behavior during the Russian election interference investigation.
“I have talked to the president about this bill. In previous conversations he talked about the need to solve this conflict. He talked about his support for a states’ rights approach during the campaign. Not putting words in the mouth of the White House, but I think this will be an opportunity for us to fulfill what is that federalism approach.” — Sen. Cory Gardner to the Washington Post
Canadian senators have ratified Bill C-45, aka the Cannabis Act, in a 56-30 vote with one abstention, according to a CBC report. The vote was true to party lines, with Conservatives dissenting and Liberals and most Independents falling in line under the leadership of Prime Minister Justin Trudeau, who made legalization a large part of his 2015 running platform.
The bill now returns to the House of Commons, where members of Parliament will need to decide what to do about the dozens of changes made by the Senate. MPs can now either approve, reject, or modify the Senate’s changes — doing so, however, would return the bill to the Senate floor for another vote.
Health Minister Petitpas Taylor said that once the bill is fully approved, it could take up to 12 weeks of preparation before retail cannabis sales actually launch.
Some of the Senate’s biggest changes include an amendment allowing provinces to prohibit the home cultivation of the plant (overriding the federal allowance of four plants per household) and another amendment imposing harsh restrictions on cannabis companies’ advertising efforts, preventing them from selling self-promotional swag such as hats or T-shirts. Another amendment, recognizing that cannabis use is commonly a social activity, eases penalties for providing cannabis to a minor when the offender’s age is within two years of said minor — this amendment would also make it legal for parents to share cannabis with their kids, similar to beer and wine.
Sen. Judith Seidman, one of the outnumbered Conservative senators, accused the government of conducting a “grand experiment on the Canadian people” and predicted that Canadians will someday regret the move to legalize cannabis.
“Legalization should be a last resort if incremental approaches to address cannabis-related harms fail.” — Sen. Judith Seidman, via the CBC
However, other senators pointed out that, despite nearly a century of prohibition, illegal cannabis use has only increased and it has led to a massive, unregulated marketplace that benefits criminals and cartels.
“Do we take a deep breath, close our eyes and stick with a demonstrably failed, hypocritical, unhealthy, prohibitionist approach of the past or do we move forward, eyes wide open, and choose the alternative? … I choose to open my eyes, rather than put on blinders.” — Independent Sen. Andre Pratte, via the CBC
The U.S. Senate Appropriations Committee approved on Thursday an amendment to SB 3024 that ensures access to medical marijuana cannot be denied to veterans by the Department of Veterans Affairs, according to a press release.
The amendment was introduced to the committee by Sen. Steve Daines (R-Montana), whose office makes clear it’s both a veterans and states’ rights issue. The amendment does not directly provide or fund medical marijuana but ensures that veterans may discuss with their VA doctors the option of MMJ in those states where it is legal. The amendment also makes it clear that access to other VA services may not be denied to veterans who are participating in a medical marijuana program.
“Veterans should not be discriminated against when they seek care at the VA. They deserve access to the treatment that best suits their medical needs, just like they would receive at a non-VA clinic.” — Sen. Steve Daines, in a statement
Under current VA internal policy, government physicians are prohibited from writing medical cannabis recommendations for veterans. Sen. Daines has a long history of fighting this policy and supporting MMJ access for veterans. He’s been responsible for introducing MMJ-supportive amendments to appropriations bills as far back as 2015, as well as leading a bipartisan group of petitioners to urge VA Secretary Bob McDonald to allow VA doctors to discuss and recommend MMJ to veterans in 2016, among other accomplishments.
If the bill is approved by the legislature as worded, it would force the VA to change its internal policy to allow for medical cannabis.
