As Canada moves forward with federal legalization, two in three Canadians surveyed by Business of Cannabis and Nanos Research indicated they are “uncomfortable” or “somewhat uncomfortable” using cannabis products with their families but citizens across all age demographics are supportive of legalization and retail sales.
The survey, released Jan. 10, found that 82.1 percent of Canadians under 35-years-old supported the reforms, along with 67.6 percent of those between 35 and 54, and 64.2 percent of citizens 55-and-older. Forty-two percent of respondents indicated they are “familiar” of what the federal and provincial government are doing in terms of regulations, another 46 percent said they are “somewhat familiar.”
Citizens would like the industry to do more to raise awareness about safety and education. The survey found just 17 percent of Canada agreed that the industry is taking sufficient steps to ensure responsible usage and safety, while 25 percent “somewhat” agreed and nearly the same percentage – 25 percent – disagreed that the industry was taking such steps.
Canadians overwhelmingly believe there are medical benefits to cannabis. A whopping 49 percent agreed that cannabis consumption has medical benefits, and another 32 percent “somewhat” agreed; while 7 percent “somewhat” disagreed and 6 percent disagreed.
The survey was conducted Dec. 6 and 10, 2017 and polled 1,000 Canadians.
On Jan. 1 Denmark rolled out its four-year $3.2 million medical cannabis trial in earnest; however, according to the Copenhagen Post, few physicians have agreed to prescribe cannabis to qualified patients – and are under no obligation to do so.
When the trial was announced by officials in November 2016, the stated goals were to “establish a defensible framework for the implementation of medical cannabis in the public health sector so patients with certain treatment indications can be treated with medicinal cannabis prescribed by a doctor.”
Why, then, aren’t doctors prescribing? The medical association Dansk Selskab for Almen Medicin has warned physicians that prescribing medical cannabis could compromise their safety. Doctors are required to carry out a professional assessment prior to prescribing cannabis and some experts have indicated that many of the nation’s general practitioners might now know how to prescribe or what for.
Klaus Høm, the head of the Scleroseforeningen association – which focuses on multiple sclerosis – said that many other doctors are refusing to prescribe cannabis as a matter of principle.
When approved by lawmakers, the program had the support from a wide-range of political parties. Jane Heitman, health spokesman for the Venstre Party, told the Post the development is “worrying.”
Nevada-based Medical Cannabis Payment Solutions, developers of payment processing technology Green, will soon begin accepting and processing payments in Bitcoin. The move comes amidst uncertain federal policy and questions about whether the federal Financial Crimes Enforcement Network (FinCEN) will continue to allow financial institutions to offer services to the industry without the protections of the Cole Memo.
“Traditional banking systems do not allow state-sanctioned marijuana to access their payment systems. The feedback we have received indicates that the opportunity is bigger than just cashless electronic payments in US currency.” – Jeremy Roberts, CEO of Medical Cannabis Payment Solutions, in a press release.
Today, FinCEN spokesperson Stephen Hudack said the agency’s 2014 guidance for cannabis businesses “remains in place”; however, the recent federal policy changes have created some uncertainty for industry operators.
Medical Cannabis Payment Solutions did not indicate a date for which they will begin accepting Bitcoin, but Sean Hullinger, chief legal officer, said the company plans on rolling out the tech “rapidly.”
“The payment system will offer a unique Bitcoin payment option enabling consumers to easily use the digital currency to make purchases. This process allows stores to accept not only electronic payments in U.S. dollars, but also digital currency (instead of cash only).” – Hullinger in a statement
The company operates throughout the U.S. in states with both medical and recreational regimes.
Vermont has become the first state to legalize cannabis via the legislature for the second time today in a voice vote, rather than a debate and roll call vote. The approval will allow adults 21-and-older to possess up to 1 ounce of flower, 5 grams of concentrate, and grow up to two mature plants beginning on July 1.
The landmark legislation still needs to be signed by Republican Gov. Phil Scott – who famously vetoed similar legislation last May citing drugged driving and public safety concerns. The House passed the measure 81-63 last Thursday.
Tax-and-regulate not included. The governor has convened a commission on the issue which forced the House to amend the bill to remove same-as provisions. Another amendment included in the bill requires would-be cultivators to obtain written permission from the landowner, or landlord, before growing cannabis for personal use.
A recent Public Policy Polling survey found 57-39 percent support for allowing adult use and possession; support dropped to 54-40 percent for a taxed-and-regulated regime.
Eli Harrington, co-founder of Heady Vermont, called the passage an important first step for advocates, patients, and the burgeoning cannabis and hemp industries in the state.
“We’ve taken the most important step of recognizing that in Vermont we believe adults have the right to responsibly consume and cultivate cannabis. Through this process the legislature has spent a lot of time educating themselves and deserve credit for listening to their constituents and learning about and issue many probably didn’t anticipate being so significant. This is the first step in a thousand-mile journey, and it is an important one, but this is the beginning not the end of cannabis reform in Vermont including focusing on updating out medical program.” – Harrington, to Ganjapreneur
Matt Simon, Marijuana Policy Project’s New England political director, said, “Vermonters should be proud” of their legislators.
“This will be an important milestone for the legalization movement. When Gov. Scott signs this legislation, Vermont will become the first state in the country to end marijuana prohibition through legislative action. MPP is proud to have helped lead the Vermont effort, just as we led the legalization ballot initiative campaigns in Maine and Massachusetts in 2016. In the past two years, we’ve seen incredible progress on marijuana policy across New England. Now that yet another state has rejected marijuana prohibition, there is even more pressure for Congress to take action to prevent any federal interference from Attorney General Jeff Sessions. It’s time for the federal government to respect the authority of states to determine their own marijuana policies.” – Matthew Schweich, MPP interim executive director, in a statement
Scott has indicated he would sign the bill if it made it to his desk this session, and once signed, Vermont will be the ninth state to legalize cannabis for adults, along with Washington, D.C. Vermont decriminalized cannabis possession in 2013.
A bill introduced in California would make it easier for individuals with low-level cannabis convictions to expunge the charge from their records. The measure, introduced by Democratic Rep. Rob Bonta, would require courts to automatically expunge eligible records under provisions of the voter-approved Prop 64.
The legalization measure, which took effect on Jan. 1, also allows defendants to petition their sentencing court for a sentence reduction; however, courts are not obligated to take any action on a case without a petition.
In a press release announcing the legislation, Bonta said that the measure would “give people a fresh start to which they are legally entitled.”
“Long after paying their debt to society, the collateral consequences of having a criminal conviction continues to disrupt their lives in profound ways such as preventing them from gaining employment or finding housing. The role of government should be to ease burdens and expedite the operation of law – not create unneeded obstacles, barriers and delay. This is a practical, common sense bill. These individuals are legally-entitled to expungement or reduction and a fresh start. It should be implemented without unnecessary delay or burden.” – Bonta, in a statement
The measure would force courts to expunge the records of those convicted of possession under the new regime – up to 28.5 grams of cannabis and 8 grams of concentrate – but it would not force courts to seek sentence reduction for those currently incarcerated.
Detroit, Michigan’s medical cannabis licensing process is on hold after a business group filed suit against the state claiming they were denied a business license under the new regime because they violated Detroit’s old ordinance, the Detroit Free Pressreports. If the suit drags on until Feb. 15, all current operators licensed under the city’s emergency rules could be forced to shut down.
Detroit’s rules allow the city’s currently operating dispensaries to stay in businesses until Feb. 15 as they work toward final approvals; however, none of the dispensaries have yet obtained such approval.
“All the dispensaries operating in the city are going to have to shut down. Everybody who is a card holder in Detroit is going to be impacted.” – Amir Makled, attorney for Advanced Wellness dispensaries in Detroit to the Free Press
David Harns, a spokesman for the Department of Licensing and Regulatory Affairs, indicated that those who do not receive final approval by Feb. 15 and choose to stay open could be at risk of being denied a state license for failing to adhere to the rules, according to the report.
“This just does a great deal of harm for all the stakeholders. Hopefully we can find a solution before the 15th.” – Jonathan Barlow, spokesman for Sensible Cannabis Reform to the Free Press
Michael Stein, the attorney for the seven to 10 businesses who filed the suit, said his clients were denied a medical cannabis operator license because they didn’t meet the zoning requirements of the old ordinance; however, the new rules – approved by Detroit voters in November – reduce the required distance for medical dispensaries from schools, parks, and daycare centers from 1,000 to 500 feet and Stein argues that his clients should qualify under the new regime.
Toker Supply, the online headshop with an unmatched social media presence, has created a unique and engaging social media campaign that encourages followers to share pictures of broken pipes for a discount on their next purchase.
The #RIPiece program encourages followers — whether they are current or future customers — to post a picture of their broken pipe on a social media account with the accompanying hashtag for a 10% discount. Any pipe is eligible, regardless of its origin or style.
As smoking gradually gains mainstream acceptance, smokers are desperate for durable products, especially with cheap, breakable products dominating the market. The proprietors of Toker Supply strive to meet these expectations by providing reliable, high-quality pieces.
For smokers who enjoy smoking in groups, it’s common for pieces to break after moderate use. The #RIPiece program was conceived as a way to console smokers experiencing emotional distress or anxiety due to lacking a pipe and offer a simple solution. Solo smokers who cycle through pieces at a slower rate also benefit from this program, as Toker Supply makes it easy to select and purchase a new piece, regardless of style preference. This program has targeted and incentivized sales from customers with the greatest need for new pipes, creating a loyal customer base in the process.
As a major online headshop, Toker Supply carries products suited to satisfy a wide range of needs for smokers. With simple yet durable bongs under $100, as well as traditional water pipes with advanced filtration systems, they carry a product that will appeal to everyone. Their collection of glass dab rigs and oil rigs continues to meet the needs of the ever-growing dabbing community. Finally, they carry various glass hand pipes with different designs, shapes, and colors. The #RIPiece discount is applicable to all of these products.
Toker Supply also ensures that customers will not need to undergo a similar process soon by selling only the strongest, damage- and break-resistant pieces.
For a look at the durability of Toker Supply pieces, check out this short video:
To take advantage of Toker Supply’s #RIPiece program, simply post a photo of your old broken piece on Twitter or Instagram with the hashtag. Toker Supply will direct message you with a personalized coupon code for a discount. Check out their blog for educational resources about smoking products.
You can further engage with Toker Supply, a trailblazer in the online headshop industry, by following them on Instagram and other social media outlets.
Nevada lawmakers are working on two pieces of federal cannabis reform legislation which, if approved, would amend the Controlled Substances Act to allow cannabis to be used medically and researched, and another allowing states to regulate cannabis for recreational use, the Las Vegas Review-Journalreports. The move comes less than a week after Attorney General Jeff Sessions rescinded the Cole Memo which had directed federal prosecutors to take a mostly hands-off approach to state-legal cannabis programs.
According to the report, Reps. Dina Titus, a Democrat, and Mark Amodei, a Republican, are working on the legislation from their colleagues on both sides of the aisle; Titus went so far as to say she would “be forced to oppose” the final budget bill if medical cannabis protections are not included. Amodei, in a conference call, said Congress needs “to get off its butt and start dealing with the issues.”
Nevada Rep. Jacky Rosen, a Democrat, also condemned Sessions’ decision in a letter to the attorney general, saying the new guidance “completely disregards the steps Nevada has taken to regulate both medical and recreational marijuana” and “creates legal uncertainty” for both patients and business owners.
“In order to prevent legal uncertainty, maintain Nevada’s vibrant economy, and continue to allow our constituents legal access to safe, effective medical cannabis products, I implore you to reinstate past DOJ policy, as outlined in the Cole Memorandum, immediately. To do otherwise would be an affront to states’ rights, a threat to small businesses, and an insult to Nevada voters.” – Rep. Rosen in letter to Sessions
At least two bi-partisan measures have already been introduced that would effectively end federal cannabis prohibition; however, none have made it to the floor of either chamber for a vote.
In a letter to President Donald Trump, Louisiana Gov. John Bel Edwards urged the president to protect state-approved medical cannabis programs by supporting the continued inclusion of the Rohrabacher-Blumenauer with the federal budget.
The amendment, formally known as Rohrabacher-Farr, prevents the federal government from using funds to crackdown on state-legal medical cannabis regimes; however, while the amendment was included in the Continuing Budget Resolution to prevent a government shutdown, it was blocked from consideration by the House during budget negotiations. The funding mechanism, along with Rohrabacher-Blumenauer protections, expire on Jan. 19 – unless included in the budget process moving forward.
“This exposes state actors and state-sanctioned agents to potential federal criminal liability despite their adherence to state law which was approved by our legislature and signed into law. If this were to take place, it would be devastating to so many men, women, and children who are anxiously awaiting access to this treatment option.” – Gov. Edwards in letter to President Trump
The amendment is currently the only protection for state-approved cannabis programs following the decision by Attorney General Jeff Sessions to rescind the Obama-era Cole Memo. Louisiana’s medical cannabis program is expected to roll out this summer.
Lawmakers in the New Hampshire House of Representatives voted 207-139 on Tuesday for a bill that would legalize the possession, consumption, and home cultivation of cannabis for adults.
Instead of moving immediately to the Senate for consideration, however, HB 656 has been referred by leadership to the House Ways & Means Committee for further review, according to a New Hampshire Public Radio report. The committee will either make adjustments to the bill or do nothing, at which point it will continue to a Senate committee and, eventually, before the Senate for a full floor vote.
The proposed measure would strictly legalize home cultivation and possession while the commercial cannabis industry would remain illegal.
“The House deserves tremendous credit for taking this reasonable step forward. Most Granite Staters understand that marijuana is less harmful than alcohol, and they’re ready to see it treated that way. Allowing adults 21 and older to grow a few plants without penalty will give them a much-needed alternative to buying from illicit dealers.” — Matt Simon, New England political director for the Marijuana Policy Project, in a statement
New Hampshire is hot on the heels of Vermont, whose legislature is also considering a cannabis legalization bill in 2018’s first legislative session.
Eight states plus Washington D.C. have legalized the adult use of cannabis. If New Hampshire’s bill is ultimately successful, it may be the first state to legalize cannabis without establishing a regulated industry for the plant (Washington D.C. has a similar regime, where voters originally approved the creation of such regulations but were ultimately stymied by federal government interference).
Editor’s note: A previous version of this article incorrectly indicated that Vermont’s pending cannabis legalization measure would establish a taxed-and-regulated system. In fact, it would only legalize possession, cultivation, and consumption of the plant (not its sale/commercial distribution).
In a memo dated Jan. 8, the U.S. Attorney in Massachusetts, Andrew E. Lelling, said he cannot “provide assurances that certain categories of participants in the state-level marijuana trade will be immune from federal prosecution.”
“This is a straightforward rule of law issue. Congress has unambiguously made it a federal crime to cultivate, distribute and/or possess marijuana. As a law enforcement officer in the Executive Branch, it is my sworn responsibility to enforce that law, guided by the Principles of Federal Prosecution. To do that, however, I must proceed on a case-by-case basis, assessing each matter according to those principles and deciding whether to use limited federal resources to pursue it.” – U.S. Attorney Lelling in a memo
The memo comes less than a week after Attorney General Jeff Sessions announced he was rescinding the federal cannabis industry protections outlined in the 2013 Cole Memo, issued by former Deputy Attorney General James M. Cole. Lelling indicated that “people and groups” had sought additional guidance as Massachusetts regulators move forward implementing rules for the state’s voter-approved adult-use cannabis program.
“Our priority has always been to protect public safety and develop regulations that are compliant with all laws including those passed by the voters and the legislature legalizing the recreational use of marijuana in the Commonwealth. As for as the mandate and the work of the Cannabis Control Commission is concerned nothing has changed.” – Statement from Massachusetts Cannabis Control Commission
Sessions, in his memo rescinding the Cole Memo protections, said “prosecutors should follow the well-established principles that govern all federal prosecutions.”
The University of California System – which includes all “UC” colleges and universities and 114 community colleges – has not lifted its restrictions on cannabis possession on university grounds or campus buildings despite broad legalization in the state, according to a report from EdSource. The ban applies to both employees and students.
In a Nov. 9, 2016 statement, UC administration released a statement indicating that federal law prevents the allowance of cannabis on campuses.
“Using and possessing marijuana is still illegal under federal law. The federal Drug Free Schools and Communities Act and the Drug Free Workplace Act require that UC, which receives federal funding, have policies that prohibit marijuana use, possession and distribution on campus and in the workplace. UC students and employees who violate the university’s policy may face discipline, with a maximum penalty of dismissal.” – University of California, “Despite passage of Prop.64, you still can’t use marijuana on UC property”
Stanford University issued its own directive just a few days after the passage of Prop 64 explaining that the institution must also maintain the status quo due to federal law.
“Stanford University receives federal funding for various uses, including research and student financial aid. As such, Stanford must comply with federal law, including all current federal drug laws. Therefore, even though California has legalized marijuana for recreational use for some individuals, the possession, use, storage and cultivation of marijuana (as defined below) is prohibited on Stanford University property for all faculty, staff and students under the university Controlled Substances and Alcohol Policy.” – Nov. 2016 Stanford “Marijuana Policy Statement”
Officials for both institutions confirmed that the policies will remain the same.
In his 2018 State of the State Budget proposal, New York Gov. Andrew Cuomo has earmarked $650,000 for a hemp processing plant, $2 million for a state-run hemp seed certification program, and plans to import “thousands of pounds” of industrial hemp seed into the state to ensure farmers have “access to a high quality product” and ease “the administrative burden” on hemp farmers.
The processing plant, located in the Binghamton area, is estimated to cost a total of $3.2 million.
“Despite growing production values, the U.S. still relies heavily on imported hemp plants and seeds, which are expensive and often poorly adapted for New York’s agricultural environment. To avoid long-term dependence on seed from other states and countries, the State must begin to produce its own unique seed to drive New York’s industrial hemp industry forward.” – 2018 New York State of the State Budget Book
The investments come on the back of a successful 2017 hemp campaign in the state, which saw the first-ever New York State Industrial Hemp Summit and Working Group commit $10 million to support hemp research, production, and processing. The budget book indicates that the state more than tripled the numbers of hemp farmers in the state last year, leading to 2,000 acres of crops.
Cuomo also announced plans for an Industrial Hemp Research Forum to take place in February.
California Attorney General Xavier Becerra has asked to meet with the state’s four federal prosecutors to figure out whether they plan to enforce federal cannabis laws in the recently legalized state, NBC Los Angelesreports. The issue comes one week after adult-use sales took effect throughout California and on the heels of a memo by Attorney General Jeff Sessions rescinding the Obama-era Cole Memo, which protected state-legal cannabis programs.
“I’ve reached out to all four to sit down with them… because we’d like to know how each of the four will intend to move forward with this new policy from US DOJ. … I would encourage everyone in the state of California including the 400 people who have now gotten a license and registered to partake in our new industry to do it the right way… We are moving forward.” – AG Becerra to NBC4
Becerra indicated that state officials would take legal action against the federal government if prosecutors and law enforcement attempt to crack down on the newly-legal industry and stymie the will of the voters.
California Lt. Gov. Gavin Newsom, via Twitter, also said that state officials would “pursue all options” to protect the state’s “reforms and rights.”
“Jeff Sessions has destructively doubled down on the failed, costly, and racially discriminatory war on drugs, ignoring facts and logic, and trampling on the will of CA voters.” – Lt. Gov. Newsom, Jan. 4, Twitter
On the federal level, lawmakers from both sides of the aisle have come out against AG Sessions’ decision.
New York medical cannabis producer Etain Inc. has been given permission to develop newly-allowed products by state regulators, the New York Daily Newsreports. The company will soon offer cannabis-infused lozenges and ground flower that can be used in vaporizers. Etain also plans to roll out a water-soluble powder that patients can mix on their own, like other powdered drinks.
“We are trying to be on the cutting edge of offering a variety to patients. Trying to make products that are familiar and easy to use for patients is one of our goals.” – Hillary Peckham, Etain founder and chief operations officer to the Daily News
The initial state law only allowed for cannabis capsules, liquids, and oils that could be vaporized; however, the Department of Health expanded the list of acceptable products under the state regime in August to include lozenges, chewable tablets, and topicals.
The state Health Department confirmed that Etain has received preliminary approval for the new products, adding that they would undergo “rigorous testing” prior to being offered to patients.
Etain operates four dispensaries throughout New York, including Kingston, Syracuse, Yonkers, and Murray Hill in New York City. The company also offers delivery services in the Albany area every two weeks.
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Despite legalization taking effect in California on Jan. 1, Coachella concert-goers are not allowed to bring cannabis to the event, held at the Empire Polo Club in Indio.
“Sorry bro. Marijuana or marijuana products aren’t allowed inside the Coachella Valley Music and Arts Festival. Even in 2018 and beyond. If that changes we will update this answer.” – Response on Coachella FAQ page.
According to aLos Angeles Daily News report, the concert promoter, Goldenvoice, is responsible for the ban – despite the event being held on private property and falling, partially, on April 20.
The event will allow attendees to bring traditional medications to the event, where they will be held by concert medical staff, but medical cannabis is excluded from that list. E-cigs and small vaporizers will be allowed.
According to the Daily News report, an event called Get Lit is planned near the Coachella venue for Coachella attendees. Festivalgoers can access the three-day party if they sign up in advance.
Indio, the home of the festival, has banned cannabis cultivation, sales, and delivery within the city limits and expanded those prohibition laws last October. Indio Police Sgt. Dan Marshall told the Daily News that while cannabis is legal in (most) of California, the decision ultimately comes down to the promoter.
On the eve of Attorney General Jeff Sessions’ directive to rescind the cannabis industry protections in the Cole Memo, House lawmakers in Vermont pushed forward a bill to legalize cannabis for adults, passing the measure 81-63. If approved by the Senate – the vote is expected on Tuesday – and signed by Gov. Phil Scott, Vermont would become the first state to legalize cannabis via the legislative process.
On Thursday, members sparred over the final details of H.511 – punctuated by Scott’s State of the State address – proposing and debating the merit of several amendments; passing just one from Republican Rep. Anne Donohue requiring written permission to cultivate cannabis on someone else’s property – such as a landlord – but rejecting the majority.
The bill eliminates all possession penalties up to an ounce for adults 21-and-older, allowing them to grow two mature and four immature plants per household. The measure does not create a tax-and-regulate system and an amendment by Republican Rep. Don Turner to establish such a program was defeated. The opposition appealed until the final roll – after proposing amendments to delay or otherwise limit some aspects of the scope – but the approved version is nearly identical to what landed on Scott’s desk last May. Notably, the language does not address “gifting” or “donating” cannabis from adult-to-adult, which could allow cannabis-friendly events in the state.
Among the amendments shot down: Republican Rep. James Harrison’s proposal to delay the rollout to July 2019; and two by Democratic Rep. Cynthia Browning – one to limit possession in homes to two pounds, and another that would have prevented the implementation of the program until the development of a roadside cannabis drug test to measure impairment. Browning argued that by not capping the amount of cannabis allowed in a person’s home, lawmakers were creating a “loophole” for drug dealing.
An amendment included in the previous measure to create a tax-and-regulate commission was removed because Scott has already appointed his own task force, whose report is expected at the end of 2018. The legislation includes enhanced enforcement of “open container” laws and consuming cannabis in a vehicle, and creates a fine-only misdemeanor crime for using cannabis in a vehicle with a minor. Language to reduce home-made extracts is also included in the bill, making it a crime for non-dispensaries to manufacture concentrates by “chemical extraction or chemical synthesis using butane or hexane.”
NORML Political Director Justin Strekal called the progress “groundbreaking.”
“Should the Green Mountain State’s leadership move forward as promised, it will mark a huge turning point in the national movement to end the criminalization of marijuana,” Strekal said in a statement. “The political courage of Vermont’s lawmakers to break with nearly a century of legislative stagnation should be interpreted as a siren call in the halls of the state legislatures nationwide as well as the U.S. Capitol.”
Matthew Schweich, interim executive director for the Marijuana Policy Project declared the vote a rebuke of Attorney General Jeff Sessions’ announcement earlier in the day that he was removing the federal protections of the 2013 Cole Memo – potentially putting a target on the back of state-approved cannabis programs of all varieties.
“It is becoming clear that states are tired of helping the federal government enforce outdated and harmful marijuana policies and are ready to make this legal for adults,” said Matthew Schweich, interim executive director for the Marijuana Policy Project. “The Vermont Legislature’s action underscores that states will continue leading the way toward more humane, sensible marijuana policies even if this administration reverts to the cruel and counterproductive federal policies of the past.”
A Public Policy Polling survey in March found 57 percent of Vermonters supported this could-be regime with 39 percent opposed. When confronted with tax-and-regulate, support shrank to 54 percent with 40 percent opposed. The measure moves to the Senate – which has already confirmed the bill – and, if approved, to the governor’s desk. Scott has indicated he would sign a revised reform package after vetoing legalization legislation passed by both chambers last May. At that time, it was the House that refused to hold a special veto session to reconsider the measure.
Attorney General Jeff Sessions has officially released the memo rescinding the Obama-era protections of the Cole Memo, which barred federal prosecutors from taking legal action against state-legal cannabis companies.
And, while the memo does not outline new enforcement directives, it includes language allowing federal prosecutors to bring cases against cannabis businesses.
“In deciding which marijuana activities to prosecute under these laws with the [Justice] Department’s finite resources, prosecutors should follow the well-established principles that govern all federal prosecutions…Given the Department’s well-established general principles, previous nationwide guidance to marijuana enforcement is unnecessary and is rescinded, effective immediately,” the memo states.
The announcement caused a dip in both U.S. and Canadian cannabis stocks, and outcry from both U.S. lawmakers and industry operators. Washington Gov. Jay Inslee, said the state “will vigorously defend” the state’s adult-use and medical cannabis laws “against undue federal infringement.”
“In Washington state, we have put a system in place that adheres to what we pledged to the people of Washington and the federal government,” Inslee said in a statement. “We are going to keep doing that and overseeing the well-regulated market that Washington voters approved.”
Colorado Sen. Cory Gardner, a Republican who opposed legalization, went so far as to threaten to hold up Department of Justice nominations.
“Up until about 8:58 this morning we believed, in Colorado, that state’s rights would be protected. Up until about 8:58 – or maybe it was 8:55 – until Twitter told us otherwise, we believed the will of Colorado voters would be respected. Why did we believe that? Well, conversations that I had with then-Sen. Jeff Sessions prior to his confirmation as Attorney General about Colorado’s marijuana policy.” Gardner said during remarks on the Senate floor. “Sen. Sessions told me marijuana wasn’t going to be on President Trump’s agenda. … Up until 8:58 this morning that was the policy. … I would like to know from the Attorney General – what has changed?”
Oregon Attorney General Ellen Rosenblum called the new policy “another example of [the] administration’s overreach” and vowed to “do everything” within her legal authority to protect the state regime.
“Lat year in Oregon we collected over $60 million in state taxes as a result of out now legal marijuana industry. At the Oregon Department of Justice we will continue to make sure Oregon’s legal industry thrives under our carefully considered state regulatory requirements,” she said in a statement. “I value my working relationship with Oregon U.S. Attorney-nominee Bill Williams and I look forward to working with his office.”
Jesse Peters, CEO of Oregon cannabis licensee Eco Firms Farms, said operators and activists “must determine the cannabis reform positions” of local federal prosecutors in legal states.
“Cannabis has higher approval ratings than apple pie and our country watches with heavy hearts as it’s often disregarded by those positioned to represent the will of the people,” Peters said in a statement. “This needs to be addressed: Call your Representatives, call your Congress-people, and be heard. It is our duty and our right to speak out – a privilege we are afforded by the sacrifices of many.”
Activists march in the street during a protest for the legalization of cannabis. Photo Credit: Sebastian Dooris
Representatives for iAnthus Capital Holdings, which operates dispensaries in New York and Vermont and invests in cannabis companies in the US and Canada, opined that it is “unlikely that the President will allow the Attorney General’s personal bias against marijuana use to damage the President’s political brand or that of his party.”
“The Cole Memo was not a federal law and did not alter the DOJ’s authority or discretion to enforce federal drug laws, which discretion continued after the Cole Memo was adopted in 2013. Accordingly, iAnthus’ management believes the rescinding of the Cole Memo does not indicate any specific change in DOJ enforcement policy,” the statement says. “There is no new policy that directs or demands the U.S. Attorneys to prosecute individuals in states where marijuana programs are legal. U.S. Attorneys will continue to have the same wide prosecutorial discretion that they had prior to today.”
And in Massachusetts, where voters approved legalization in 2016 but regulators have until July to implement the program, the state Cannabis Control Commission said their role remains the same: “To fulfill the will of the voters.”
“Our priority has always been to protect public safety and develop regulations that are compliant with all laws including those passed by the voters and the legislature legalizing the recreational use of marijuana in the Commonwealth,” the statement says. As for as the mandate and the work of the Cannabis Control Commission is concerned nothing has changed.”
The National Cannabis Industry Association, which represents over 1,500 cannabis-related businesses nationwide, called the policy change “disturbing.”
“But, the rescinding of this memo does not necessarily mean that any major change in enforcement policy is on the horizon. This has been, and still will be, a matter of prosecutorial discretion,” the organization said in a statement. “We therefore hope that Department of Justice officials, including U.S. Attorneys, will continue to uphold President Trump’s campaign promise to not interfere with state cannabis programs, which have been overwhelmingly successful in undercutting the criminal market.”
Cannabis stocks in both the U.S. and Canada took at hit following the announcement by U.S. Attorney General Jeff Sessions that he was rescinding the Obama-era Cole Memo, which had allowed state-approved cannabis programs to proceed without federal interference.
In the U.S, Scotts Miracle-Gro Co., which has recently expanded into plant nutrients and hydroponic growing systems, opened at $106.11 before falling 5.2 percent to $103.19 – it’s largest drop in eight months. At the end of daily trading, Scott’s had run back above its opening price, closing at $106.19.
Alternative Harvest ETF – the first New York Stock Exchange-approved cannabis exchange-traded fund – dropped 9.3 percent, wiping out gains made following California’s Jan. 1 legalization; however, at the end of Thursday trading, the fund ultimately lost just 2.34 percent.
Scott’s and Alternative Harvest are the only two companies with cannabis interests allowed on the major U.S. market. Over-the-counter stocks were also battered following Sessions’ announced policy change: MassRoots started Thursday at .80 and by 11:00 am had dropped to .53 ultimately closing at .58. Cannabis Sativa Inc. began the day at $9.19 and fell to as low as $6.90 before settling at $7.40.
In Canada, which plans on federally legalizing cannabis for adults in the summer and allows cannabis companies to access the nation’s largest markets, Canopy Growth Corp. — the nation’s largest cannabis firm by market value, according to the Cannabist —began the day at C$33.97 but sank to as low as CA$29.38 before making gains and closing at CA$32.32.
Aurora Cannabis started the day at CA$10.78, plunged to CA$9.34 when the Sessions news broke, before pushing back toward its opening price, closing at CA$10.47.
CannaRoyalty Corp., which announced it had agreed to acquire two California firms in November, experienced market losses of nearly 16 percent yesterday, opening at CA$5.10, falling as low as CA$4.11, before settling at CA$4.25.
According to the Cannabist report, the Bloomberg Intelligence Global Cannabis Competitive Peers Index fell 22 percent following the policy change report.
MedMen, producers of cannabis products in two states, are rolling out an advertising campaign in California called “Faces” which will feature close-ups of customers’ faces with phrases such as “Relax. It’s legal,” and “Heal. It’s legal,” CNBC reports.
Daniel Yi, MedMen president of corporate communications, called the campaign, which will feature billboards and truck advertising, the “largest marijuana marketing campaign in history.”
“This is not about marijuana. This is about the people who use cannabis for all the reasons people have used cannabis for hundreds of years. Yes for recreation, just like alcohol, but also for wellness.” – Yi to CNBC
MedMed operates six shops in southern California and three in New York, offering more than 1,000 products. Yi says many of those products, such as skincare products and CBD bath bombs and teas, “have nothing to do with getting high.”
According to Yi, the company has, so far, spent $500,000 on marketing, including digital and print ads and has bought space on billboards near the famous Whisky a Go Go nightclub on Sunset Boulevard.
U.S. District Court Judge Thomas Rice has vacated the convictions and dismissed the charges of the so-called Kettle Falls Five – a family of cannabis growers in eastern Washington state who were charged under federal law in 2013 for cultivating and distributing cannabis, according to a Strangerreport.
Rhonda Firestack-Harvey, her husband Larry Harvey, Rhonda’s son Rolland Gregg, his wife Michelle, and Jason Zucker, a family friend were charged not only with the drug crimes but also for owning firearms “in furtherance of a drug trafficking crime.” Zucker cut a deal with prosecutors and turned state’s witness; Larry’s charges were dropped as he battled pancreatic cancer. He died in August 2015. The remaining three were ruled guilty of growing cannabis but were acquitted on all other charges and would appeal the case, claiming that they were protected by the Rohrabacher-Blumenauer (then Rohrabacher-Farr) amendment since they were operating under the letter of Washington state law.
The feds admitted in October that they were “not authorized to spend money on prosecuting the defendants after December of 2014” and asked the court to dismiss the charges against the three, The Stranger reports. Thomas dismissed the charges yesterday but warned that the government could revisit the case if funding for federal cannabis enforcement is restored.
Alaska’s cannabis sales posted their first decline in November 2017 after setting sales records in October, the Juneau Empirereports. In November, licensed cultivators in the state sold 857 pounds of flower and 777 pounds of trim to retailers; down from 1,004 pounds of flower and 626 pounds of trim the previous month.
Based on taxes of $50 per ounce of flower and $15 per ounce of other parts of the plant, such as trim, transferred from cultivator to retailer, the state netted $872,197 in excise taxes from the cannabis industry in November. In October, the state saw $953,591 in excise taxes derived from the industry.
Connecticut’s Department of Consumer Protection is seeking applications for at least three new medical cannabis dispensaries by Apr. 9. Applicants are required to submit business plan information including organization structure, security plans, and compassionate care plans.
“Our state’s Medical Marijuana Program is incredibly successful, and is growing rapidly. When there is a substantial increase in the number of patients, DCP can issue new [Request For Applications] in order to best meet the demand for medication, and continue our commitment to quality health care.” – Consumer Protection Commissioner Michelle H. Seagull in a press release
The state program allows adults 18-and-older with 22 medical conditions to access medical cannabis products, while individuals younger than 18 must have one of just six conditions to qualify for a medical cannabis program ID.
According to the DCP, there are currently just nine dispensaries and four licensed producers throughout the state for 22,348 registered patients. The agency reports that there are 807 physicians and advanced practice registered nurses registered to recommend cannabis to patients.
Dispensary applicants must pay a $1,000 non-refundable initial application fee, a $5,000 non-refundable registration fee, and a $5,000 non-refundable annual renewal fee. Currently, the nine dispensaries are located in Hartford, Milford, Branford, Waterbury, Bethel, South Windsor, New Haven, Uncasville, and Bristol.
