Wednesday, 29 January 2020

Indiana Republicans aiming to force marijuana prosecutions

Marijuana

Associated Press
INDIANAPOLIS (AP) — Republican legislators agitated with an Indianapolis prosecutor’s refusal to press charges for possessing small amounts of marijuana are seeking to empower the state attorney general to appoint a special prosecutor to take over such cases.
An Indiana Senate committee endorsed a bill Tuesday on a 6-3 vote that would let the attorney general’s office step in if a county prosecutor announced a policy of not enforcing a law or was found to have “categorically elected” to not do so.
The proposal comes after Democratic Marion County Prosecutor Ryan Mears announced in September that his office wouldn’t pursue charges against adults for possessing about 1 ounce or less of marijuana, saying the office would focus on prosecuting violent crimes. Since then, officials in northwestern Indiana’s Lake County started considering whether to give sheriff’s deputies the discretion to write a $50 to $250 ticket for small levels of marijuana, instead of taking someone to jail.
Republican Sen. Michael Young, of Indianapolis, said his proposal wasn’t just about Mears’ action and pointed to decisions by prosecutors in Boston and San Francisco to stop pressing charges in cases such as trespassing, disorderly conduct or prostitution.
“It’s because of the social justice prosecution phenomena that’s going on throughout the country,” Young said. “I wanted to try to head it off in Indiana.”
Republican Attorney General Curtis Hill and most GOP legislators are firmly against marijuana legalization as has happened in Michigan and Illinois. Parvonay Stover, the attorney general’s government affairs director, told the committee the office believed prosecutors should make charging decisions on a case-by-case basis and respect the Legislature’s decisions on making something a crime.
The Indiana Prosecuting Attorneys Council argued the bill wrongly usurped the discretion that county prosecutors must have about how to use their staff and budgets on which cases to pursue.
David Powell, the council’s former executive director, said prosecutors must make tough decisions such as he did in filing three death penalty cases in his 20 years as a local prosecutor.
“I know of (prosecutors) that would never file the death penalty because they don’t believe in it,” Powell said. “So, should they be removed from office?”
The bill, which now goes to the full Senate for consideration, opens the door to “a political circus” and leaves questions about prosecutors quietly decide against charging some crimes, said Democratic Sen. Karen Tallian of Odgen Dunes, who has long advocated for marijuana legalization.
“I think one of the things this bill will do is to encourage prosecutors to do something and not make it transparent,” Tallian said.

Tuesday, 28 January 2020

Congress Takes Steps in Favor of Cannabis Research

Congress Takes Steps in Favor of Cannabis Research
On January 10, a Marijuana Moment article said that Congress will conduct a hearing to discuss six marijuana-related reform proposals. Among the six bills, two of them are related to marijuana legalization, while the other four focus on marijuana research.
Congress held a hearing on January 15 to discuss the six proposals. During the hearing, lawmakers discussed the problems that the country faces regarding marijuana-related research. The hearing was based on evidence collected from DEA, FDA, and NIDA. Last year, the Trump administration mentioned that additional research will be necessary before any federal decision is made. However, the fact that marijuana is an illegal drug hinders the research.
The Controlled Substances Act imposed many restrictions on cannabis research. Marijuana is an illegal drug and federal laws don’t allow research on illicit drugs. As a result, the funds are limited. Also, cannabis is obtained for analysis from one authorized grower, which limits the diversity of the product available for research. Earlier, I discussed how Republicans argued the same point.
What happened at the Congress hearing?
On January 15, a Marijuana Moment article discussed what happened in the congressional hearing. Representative Joe Kennedy was formerly against reform. He explained how prohibition failed in the country and why it’s necessary. He also said that the panel leadership would be conducting a second hearing to discuss the negative impact.
Energy and Commerce Committee Chairman Frank Pallone said, “while state laws and public perception around cannabis and its derivatives have evolved over the years, much of the federal framework that regulates cannabis has stayed the same.”
Regarding the lack of cannabis that’s available for research, the DEA’s senior policy advisor, Matthew Strait, said that the issue is being investigated. Soon, there could be regulations that would license additional growers. The DEA, FDA, and NIDA all agreed that there isn’t enough marijuana for quality research. Kennedy asked NIDA Director Nora Volkow and the FDA deputy director if legalizing marijuana would help with the study. Volkow said that legalization might “have unintended negative consequences.”
Many lawmakers argued that cannabis has medical benefits. In contrast, many lawmakers who oppose legalization explained that marijuana is a gateway drug. As a result, legalizing the drug would threaten public health. For the hearing, pro-legalization group NORML submitted written testimony.

Which cannabis bills need attention?

Many other marijuana reform groups also submitted written testimonies in support of legalization and other cannabis legislations.
  • Marijuana Opportunity Reinvestment and Expungement Act which would deschedule marijuana federally
  • Marijuana Freedom and Opportunity Act which would deschedule marijuana federally
  • Medical Cannabis Research Act of 2019 which would approve additional manufacturers for cannabis supply for research purposes
  • Medical Marijuana Research Act of 2019 which would simplify the marijuana research process
  • Legitimate Use of Medicinal Marijuana Act which would move marijuana from Schedule 1 to Schedule 2 and make it free from federal restrictions 
  • Veterans Medical Marijuana Safe Harbor Act, which states that military veterans can use, possess, and transport medical marijuana within states legally 

How can legalization benefit cannabis companies?

The US legalized hemp in 2018 under the Farm Bill. Since then, Canadian cannabis companies have focused on expanding their hemp market in the US. Canopy Growth (NYSE:CGC)(TSE:WEED) expanded its hemp production facilities in New York and Illinois. The company also acquired AgriNextUSA in March 2019 to mark its entry in the US hemp market. Aurora Cannabis (NYSE:ACB) acquired Hempco Food and Fiber to expand its hemp and CBD business in the US. Hemp can provide many market opportunities for marijuana companies. Medical and recreational cannabis can also provide opportunities. Edibles and beverages can help cannabis companies widen their customer base and earn higher profits. As a result, full-scale legalization can benefit marijuana companies. Cannabis companies could drive revenue growth and positive EBITDA from Cannabis 2.0 in Canada. A Raymond James analyst doesn’t think that this will happen until the fourth quarter of fiscal 2020.
The analyst also discussed how more prominent cannabis companies might survive, but the smaller ones might go bankrupt amid the cash crunch in the sector. He seemed optimistic about Aphria (NYSE:APHA) and OrganiGram (NASDAQ:OGI).
As of Monday, Canopy Growth stock has risen 2.2% YTD, while Aurora Cannabis stock has fallen 12.5%. Meanwhile, Aphria has gained 7.0%, while OrganiGram has risen 6.5% YTD.

Connecticut Will Prioritize Marijuana Legalization in 2020

By Sushree Mohanty
The marijuana legalization topic is picking up steam in Connecticut. Connecticut decided to prioritize legalizing recreational cannabis in 2020 due to neighboring states’ actions. Medical cannabis is already legal in the state. Also, the state decriminalized possessing small amounts of cannabis.
The state attempted to legalize recreational cannabis earlier. However, confusion regarding the allocation of revenue led to the delay. Now, the state realized that it’s time to legalize adult-use cannabis due to efforts from neighboring states. A Marijuana Moment article discussed how Senate President Pro-Tem Martin Looney stated that Connecticut is ready to pass a legalization bill.
He said, “We are revisiting legalizing recreational cannabis because we see that most of our neighboring states have already done it or want to do it this year.” The state already has three proposals ready, which were submitted last year. Looney thinks that the state needs additional revenue. Cannabis generates a lot of revenue for states since it’s illegal under federal law. Connecticut saw the tax revenues that other states earn from cannabis. Also, there’s a huge demand in the state, which is forcing people to travel to Massachusetts to purchase marijuana.

Regulated market could fight illegal marijuana sales

Lawmakers in Connecticut understand that only a regulated market can help combat illicit marijuana sales. The demand is high in the state. As a result, customers could turn to the illegal market. Colorado got rid of the black market, which motivated Connecticut Governor Ned Lamont. He said, “They got rid of the black market. They got rid of a lot of the most dangerous substances that the black market was trying to sell. I think their vaping-related illnesses are down.” He also said, “They’ve raised some real revenue from this—some of which is going to opioid addiction and treatment and other things.”
Connecticut wants to bring social justice through cannabis legalization. The state wants the citizens most harmed by the prohibition to benefit from the policy change. Connecticut wants tax revenues from cannabis sales to be used to help communities that have been impacted.
New York, Missouri, Florida, Vermont, and New Hampshire want to legalize marijuana this year. Their stance on legalization inspired Connecticut to take this step.

CBD, hemp, medical marijuana? Here's what you need to know about Texas' changing pot laws.

Marijuana and hemp are often indistinguishable by look or smell because they both come from the cannabis plant. But hemp is legal, and marijuana is not.
A 2019 Texas law that legalized hemp but kept marijuana illegal has led to widespread confusion.
Since Texas lawmakers in 2019 legalized some forms of the cannabis plant but not others, marijuana prosecution cases around the state have been thrown into disarray, and enforcement can vary greatly depending on where you live.
A new Texas law sought to bring the state in line with a 2018 federal law that legalized hemp while keeping marijuana illegal. The result: widespread confusion.
Here’s what the new laws mean for Texans.
Hemp, marijuana and CBD: What’s the difference?
Marijuana and hemp are often indistinguishable by look or smell because they both come from the cannabis plant. The difference amounts to how much of the psychoactive compound THC, or tetrahydrocannabinol, they contain.
Cannabidiol, or CBD, is a nonpsychoactive compound of cannabis. Businesses may sell it throughout Texas as long as its THC concentration is less than 0.3%. Supporters claim it can alleviate conditions such as anxiety, depression and insomnia. The U.S. Food and Drug Administration doesn’t recognize any of the lofty claims, however; the agency has only approved the drug to treat two rare kinds of epilepsy through the prescription drug Epidiolex.
OK, what is legal right now?
It is still illegal to use or possess marijuana under Texas law — and has been since 1931. What changed last year is that hemp is considered different from marijuana.
Since the law change, prosecutors and state crime labs have dropped hundreds of pending marijuana charges and declined to pursue new ones because they don’t have the resources to detect a substance’s precise THC content, arguably keeping them from the evidence they need to prove in court if a cannabis substance is illegal.
Gov. Greg Abbott and other state officials insisted that the bill didn’t decriminalize marijuana and that the prosecutors don’t understand the new law. Still, marijuana prosecutions in Texas plummeted by more than half in the six months after the law was enacted, according to the data from the Texas Office of Court Administration.
And medical cannabis is legal in Texas in very limited circumstances. Abbott signed the Texas Compassionate Use Act into law in 2015, allowing people with epilepsy to access cannabis oil with less than 0.5% THC. Last year, he signed House Bill 3703, which expanded the list of qualifying conditions to include diseases such as multiple sclerosis, Parkinson's disease and Lou Gehrig's disease, or ALS.
Is recreational marijuana prosecuted the same everywhere? What are the differences?
Eleven states and Washington, D.C., have legalized recreational marijuana possession. In those states, marijuana use and possession is still regulated, but people are not criminally or civilly punished under state law.
More than 10 other states have fully or partially decriminalized certain marijuana-related offenses. Under many of these state laws, it is still illegal to use marijuana recreationally, but prosecutors do not press criminal charges. Instead, offenders face civil penalties, which usually include fines or drug education programs.
In Texas, state law allows prosecutors to press criminal charges, typically misdemeanors for small amounts, against recreational marijuana users. They can carry fines of more than $1,000 and jail time.
Why has there been an explosion of hemp products?
The new law means Texans should no longer face penalties for possession of hemp and its derivatives like CBD, and business appears to be booming.
Industry officials don’t know the exact number of new businesses selling CBD in Texas because the Texas Department of State Health Services hasn’t yet implemented licensing requirements. But they believe they’ve seen an uptick.
Still, implementing the law has proven rocky. A man spent a month in an Amarillo jail last year after being arrested for allegedly transporting marijuana, though lab tests indicated the substance was in fact legal hemp. The state — and many cities — are still trying to determine regulations and training for law enforcement so people aren’t mistakenly arrested.
How are counties approaching it?
Many Texas prosecutors, Republicans and Democrats alike, are dropping low-level marijuana possession charges and declining to pursue new ones altogether.
Before the hemp law passed, law enforcement agencies in Harris, Dallas, Bexar and Nueces counties had already stopped arresting many people found with small amounts of the drug on a first offense. Instead, they may offer diversion programs to keep defendants out of jail or issue citations for people with a misdemeanor amount of marijuana.
In June, the Texas Department of Public Safety — the state’s largest law enforcement agency — ordered its officers not to arrest people but to issue citations if possible in misdemeanor marijuana possession cases, which still carry a penalty of up to a year in jail and a $4,000 fine. Other cities, such as El Paso, are considering enacting the "cite-and-release" policies.
The Austin City Council voted unanimously this month to end most arrests and fines — and ban spending city funds on testing — for possession of small amounts of marijuana. The police chief responded a day later, saying he would still issue tickets or arrest people. Under the new city resolution, those actions will come with no penalty.
But marijuana possession cases are still being prosecuted in some cities like Plano, a North Texas suburb that recently approved more money for the police department to test substances in misdemeanor marijuana cases. Local prosecutors require testing by private labs to determine THC concentration, which can cost hundreds of dollars. Counties that can’t afford a private lab are sending samples to DPS and either rejecting or postponing cases as DPS works to adopt a new testing method.
Are there efforts to legalize marijuana in Texas?
State Rep. Joe Moody, D-El Paso, last year introduced House Bill 63, which would have prevented police from arresting people for possessing an ounce of pot or less and made it a Class C misdemeanor carrying a maximum $500 fine. It passed the House on a 103-42 vote.
Abbott had said he was open to reducing the penalties for low-level marijuana possession, but the bill died in the Texas Senate.
What do the polls say?
A majority of the state’s registered voters are in favor of some form of marijuana legalization, according to a University of Texas/Texas Tribune Poll from June.
More than 80% of the state’s voters said they would legalize pot in some capacity, including medical marijuana (31%), small amounts (30%) or any amount (23%).

Friday, 24 January 2020

Conn. state Democrats plan to push for marijuana legalization again

By
 Kevin Zimmerman

Connecticut Senate Democrats expect to renew a push to legalize recreational marijuana this year, reviving an effort that seemed to have traction last year but ultimately came to naught.
CBD cannabinoidCannabis legalization is one of eight proposals included in “A Smart & Responsible Connecticut,” an agenda for the 2020 legislative session released yesterday by Senate President Pro Tem Martin Looney (D-New Haven), Senate Majority Leader Bob Duff (D-Norwalk), and other members of the Senate Democratic caucus.
“The prohibition of the possession and sale of cannabis has failed in its intent to stop the sale or use of cannabis,” the document states. “The ‘war on drugs’ is a similar failure and has led to a staggering racial disparity when it comes to enforcement of laws criminalizing cannabis.”
“In 2020, the Senate Democratic Caucus will take action to legalize, tax and regulate the retail sale, personal growth and recreational use of cannabis by individuals over 21 years old,” it adds.
Gov. Ned Lamont has also spoken in favor of revisiting the idea during the upcoming legislative session, which is scheduled to run Feb. 5 through May 6.
The state Judiciary Committee approved several bills last spring that would have legalized possession of recreational marijuana for adults 21 and older. SB 1085 established 1.5 ounces as the amount of marijuana that could be legally possessed for recreational use; set penalties for selling marijuana to minors; and provided for people who previously had been convicted of marijuana possession to petition courts to have those records expunged.
SB 1085 passed mostly along party lines: no Republicans voted for it, while a few Democrats voted against it.
Advocates have projected that Connecticut could make $70 million in the first year of legalization and approximately $160 million in each following year. Recreational marijuana shops in Massachusetts took in over $420 million in sales in the first full calendar year of legalization, according to state data. The Bay State imposes roughly 17% to 20% in taxes on marijuana, including a 6.25% sales tax, a 10.75% excise tax and an optional local tax of up to 3%.
Opponents question whether such a move would be in the best interests of public safety.

Cannabis experts are hoping 2020 will be the year that New York finally legalizes weed

By Ciara Linnane

Gov. Andrew Cuomo has included cannabis legalization in his budget proposal and 

plans to work with neighboring states

Mark











New York Gov. Andrew Cuomo is hoping to get cannabis legalization through his budget for 
fiscal 2021

Cannabis advocates are cautiously optimistic that 2020 will be the year that New York state finally legalizes marijuana for adult recreational use, marking a milestone for the legal business.

Gov. Andrew Cuomo has included legalization in his budget proposal for the new fiscal year, projecting it could generate $20 million in revenue in fiscal 2021, growing to $63 million by fiscal 2022 and $188 million by fiscal 2025.

Passage of such legislation is not a sure thing, however.

A similar effort last year fell apart when lawmakers were unable to agree on the details, specifically the correct measures to ensure that the communities that were disproportionately punished during the 40 year long U.S. “war on drugs” would benefit from a new legal industry.

Crystal Peoples-Stokes, a Democrat from Buffalo who is New York state Assembly Majority Leader and pro-legalization, welcomed Cuomo’s proposal.

However, “the only legislation that I can support will include a statutory commitment of significant resources directed to communities harmed by mass incarceration resulting from the so called war on drugs, and a robust economic and social equity plan for access to the new industry,” she told MarketWatch in emailed comments.

Cuomo is taking a different approach this year with plans to create a new Office of Cannabis Management to specialize in cannabis regulation and create the framework for medical, adult-use and hemp programs.

Central to the plan are provisions to ensure social equity licensing opportunities. Sales will be restricted to adults of 21 years of age and older and quality controls will be used to ensure the safety and potency of products, including labeling, packaging, advertising and testing.

“These efforts will be done in coordination with neighboring states Connecticut, New Jersey and Pennsylvania,” Cuomo said in a statement. Further plans include the creation of a Global Cannabis and Hemp Center for Science, Research and Education with SUNY and other partners.

Experts agree that the time is ripe for New York to fully legalize the drug with public support at an all-time high. A Siena College poll released on Monday found voters in favor of legalization by a 58% to 38% margin, the highest level yet recorded by Siena.

Rob DiPisa, co-chair of the Cannabis Law Group at law firm Cole Schotz, said he’s hopeful but also a bit skeptical about a deal being done. “It’s the same lawmakers and the same issues,” he said.

Still, the state’s $6 billion budget deficit may persuade some skeptics of the need to create a new revenue source and taking a unified approach with other legislatures may also act as a catalyst, he said.

“Cannabis alone can’t plug all the deficits, but it can be part of a cocktail of revenue generation,” he said. “And working with neighboring states makes sense to ensure the tax structures are similar and discourage cross-border buying that would sees states compete for revenue.”

Coming a little late to the cannabis party — 11 states and the District of Columbia have already passed laws legalizing recreational cannabis use — gives New York the advantage of learning from others, said DiPisa.

“They are taking some social equity measures from Illinois. So far, no state has got everything right,” he said. Illinois started legal sales of cannabis on Jan. 2.

Then there is the thorny issue of taxation.

Cuomo is proposing three levels of taxes, starting with a 20% tax on the sale of product to a retailer. Cultivators would be taxed at the rate of $1 per dry weight gram for flower, at 25 cents per dry weight gram of cannabis trim, and at 14 cents per gram of wet cannabis. Local counties or cities with a population of 1 million or more would be entitled to another 2% sales tax.

As California companies know all too well, high taxes can have the effect of truly crippling the nascent sector as it makes it all but impossible for companies to compete with the black market, which continues to dominate in the Golden State.

A recent report by Boulder, Colorado-based BDS Analytics and San Francisco-based ArcView Market Research found that about 80% of cannabis transactions in California are black-market deals, eating into the revenue available to legal players.

A slow and complex licensing process in California has also meant fewer store openings than expected, further exacerbating the problem. Companies unable to access the market are now running out of money, and many are laying off staff, cutting costs and getting creative with fundraising.

The situation is almost as dire in Canada, the first G-7 country to legalize weed for adult use in October of 2018. Canadian companies have also suffered from a slower-than-expected rollout of retail stores that has allowed the black market to thrive. MKM analyst Bill Kirk said the “stubborn” price gap between legal and illicit weed is encouraging Canadians to use the black market. The average legal price in the fourth quarter was C$10.30 ($7.83) a gram in the legal market versus C$5.74 a gram in the illicit market.

Cristina Buccola, founder of Cristina Buccola Counsel PLLC and a former general counsel at publication High Times, said taxation is key. “If it’s too high, it shuts down the industry before it begins.”

But it’s also important how tax revenue is spent and Buccola would prefer to see a plan to reinvest some of the money raised in services for the very communities that were devastated during the years of prohibition.

“Plenty of people who have been negatively affected by prohibition might not want a license, for example,” she said. “But they might want to work on mental health issues, or job training. That’s the kind of community reinvestment we need to see.”

Buccola agreed that addressing New York’s enormous illicit market is a challenge, but a key factor in creating a viable industry. “It’s about bringing the actors from the legacy market over to the legal market and that will take time. We need to ask what services those people need to make that change.”

Whatever happens in 2020, experts agree that New York is a major market for the industry and bringing in New Jersey, Connecticut and Pennsylvania at the same time would be a big move forward.

“Those are monster markets and we already have Massachusetts,” said Korey Bauer, portfolio manager at the Cannabis Growth Fund from Foothill Capital Management. “It would be a big step forward to descheduling at the federal level.”

The ETFMG Alternative Harvest ETF MJ, -4.65%  has fallen 40% in the last 12 months. The S&P 500 SPX, -0.90%  has gained 26% in the same time frame, while the Dow Jones Industrial DJIA, -0.58%  has gained 19%.

Wednesday, 22 January 2020

Legal Marijuana Offers Harmful, Empty Promises

By JULIE DOSTAL
This is not your parents’ weed.  Information and data from states that have legalized marijuana should give New Yorkers reason to pump the brakes on taxed, regulated recreational use.  Legalization of the 2020 version of cannabis is not about consenting adults discretely smoking a joint in the privacy of their home.
It is about an industry-driven, full-on commercialization with pot shops, pot advertisements, pot sponsorships, and pot fundraisers.  All of these to sell pot brownies, gummies, cookies, vapes, sodas, infused wines, distillates, concentrates, ointments, and vapes. If we legalize cannabis for recreational use, prepare to be inundated with highly concentrated cannabis products that do not remotely resemble the weed most readers might remember.
We as a community need to view legalization with eyes wide open.  This is about a billion dollar industry whose primary concern is NOT your health or the health of your children.  It is about dollar signs in an untapped market.  There are multiple promises that the industry and its advocates have touted related to the commercialization of the drug.  The public should know that nearly all of the industry’s public health promises have been disproven in the states that have legalized recreational use.
Examples include:
Promise: Youth use rates will go down
Reality: Youth rates of cannabis use are increasing
Promise: The black market will disappear
Reality: Black markets are thriving in legal states by selling street pot cheaper than taxed pot
Promise: Social justice issues will be resolved and fewer minorities will be arrested
Reality: Arrest rates for minorities are disproportionate in legal states and increasing
Promise: The cannabis supply will be safer
Reality: Commercialized cannabis, up to 99.9 percent THC, is a drug with far more harms than the 5 percent THC version of pre-legalization
Promise: Legal marijuana will make people safer
Reality: Marijuana-related traffic fatalities have increased significantly in legal states
Promise: People cannot become addicted to marijuana
Reality: Cannabis Use Disorder (Addiction) is an actual diagnosis
Promise: Legalized marijuana will reduce death from opioid overdose
Reality: This early assumption was disproven by a 2019 study.
Revenue projections are also not as promised.  None of the NY tax-bonanza predictions include the costs associated with police for increased traffic enforcement, hospitals for increased emergency room visits, government departments for increased oversight, poison control for increase calls for pediatric consumption, businesses for diminished job performance, or mental health for increased incidences of psychosis (all of these have occurred in legal states).  Those are not costs that will be borne by the billion dollar cannabis industry.  Those are costs that will land on tax payers.  In Colorado, tax payers spent $4 to mitigate the cannabis-related harm for every $1 gained in tax revenue.  But, those numbers don’t make national news.
Let’s pump the brakes, New York.  Our youth, our health, our traffic safety and our mental health are far more important than a questionable revenue stream.  We did the right thing last year with decriminalization.   The next step does not have to be opening the doors to a billion dollar industry whose entire job is to make stockholders happy.  Commercialization does not have to be inevitable.
Julie Dostal is executive director of The LEAF Council on Alcoholism & Addictions, Oneonta.